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ANNUAL REVIEW AND OUTLOOK ISSUE
In 2 Sections
SeC^®ATNY
JAN 20 1956
business administra
U33&EC
Reg. U. S. Pat. Office
Volume 183
Number -54G0
-
New York 7, N. Y.,
EDITORIAL
Voluntarism or Coercion?
THE YEAR AHEAD
year as
rate of business
activity still
as
New York
exceptionally good.
to be
somewhat,
or
leveling off, and the forecasts
are
seems
to have occurred to belie the
as
Christmas and New Year Seasons.
The rise in the volume of
during the
as
year
the
not
exuberance
was
at
home."
Simons'
So
famous
began
the
late
Professor
article, "Some reflections
ism."!
peak some weeks ago, almost
universally conceded that this rate of advance
a
Simons
of
nerve
thus
touched
conformism
is above
maintained.
alent in many
union circles which
things be much longer
Long continuation of such a rate of
climb, it was generally believed and with reason,
would inevitably result in a situation which
to
"•»,
:
'
X
,
v-&
Differences
still
the
opinion three weeks ago, and
large measure today, chiefly concerned
length of life of the "plateau" expected to
within months at best,
weeks, and about what
about
the
on
balance, they
and
I
Dr. W. H. Peterson
do
not
While I
of
the
tribution
American
trade union
of
Henry
C.
Simons,
as
I
Pro-
it,
♦A
tions
paper
the
by Dr. Peterson before the Industrial
Association, New York City, Dec. 30, 1955.
same
generate
time
our
and
poor,
as
weapons
well
as
must
we
defense.
our
hands
unions
the
and
for
All
the
an
economy
in
our
nation
—
labor
employers, the rich and
both major parties, the
George
Humphrey
farmer and the city man, the woman
home
at
making
and
the
man
at
his
productive
our new
job—all
way
have
in
part
a
of life.
This peaceful evolution has resulted
in
a
tremendous
he
upheaval of this nation's whole economy that has
really
65
of
different
a
"haves"
that
kind
needs
of
an
a
nation,
up-to-date
unique nation
a
way
of
thinking
Rela¬
Continued
In the SECOND SECTION of today's ANNUAL REVIEW AND OUTLOOK ISSUE we
show monthly high and low prices of every stock and bond issue in which dealings occurred on the New York Stock Exchange during 1955.
DEALERS
econ¬
an ever-higher stand¬
living, plus the social services
men
have
/
con¬
presented
Research
constantly
the people want and need
move¬
page
evo¬
and
provide
ard of
created
on
will
its economy
con¬
nourishment
self-betterment;
the
must
view.
is that
of
day-to-day American
that
At
course
The great
see
flow
a
and better-paying
jobs for
ever-growing population.
reversion to the
a
Continued
34
page
this point of
doubtful about the
of
—
if we-pull together.
have been re-shaping this Gov¬
policies into the policies required
new
organized
share
am
up-to-
course
we
that will pump
new
the
omy
capitalistic
a
with
indicated
promising
economic
lution of
se
incompatible.2
were
business unionism of Samuel Gompers.
in
into
"cor-
or
is
years,
economy
tinuous
hesitate
are sound.
widespread
ment, I believe there is yet hope of
configuration of the curves of business during
1956. A month or so ago the devotees of
on
a
labor movement
the year
Continued
not
reader
the
to
a
an
porate monopolies."
; >;
t
In this paper it is not my position
to uphold all the arguments of Pro¬
fessor Simons, although I do believe
order
to
"inverted saucers" and inverted "V's"
do
as
strong and forward-looking nation,
firmly rooted and self-supporting;
ideology prev¬
American literary and
;fessor Simons held that
quite
was
for
rew
per
views
GEORGE M. HUMPHREY
future
three
ernment's
an
'
possibly
happen
when further substantial
change occurred. Argu¬
ments about this aspect of the outlook have been
within
criticism,
criticize "giant business"
that,
of
in
appear
The
,.
~
destruc¬
own
a
government
Secretary of the Treasury
America—
namely, that trade unionism
could net in the nature of
carried within itself the seed of its
tion.
in
of
These forecasts, written especially
CHRONICLE, provide the
HON.
Henry C.
Syndical¬
on
opinions
business in all industries. The statements
begin herewith:
■
using /'political coercion."
as
individual
the-minute official
'Questioning the virtues of the organized labor move¬
ment is like
attacking religion, monogamy, motherhood,
or
1955 was
unique. This fact has all along been well
recbgnized, and even the most optimistic, when
was
legal monopolies and
the
For
production and trade
phenomenal where it
the
in the current year.
for
not coercion. Lists advan¬
tages of voluntarism and points out
incongruity of com¬
pulsory unionism and constitutional rights. Sees unions
usual adorned the
prognostications that
to¬
principle of voluntarism and
glowing appraisals
and
ISSUE
officials and of the country's leading
industrialists, bank¬
ers and financiers as to the
probable trend of business
unions, Prof; Peterson says the big question
for organized labor
today is: voluntarism or coercion,
and states, if
compulsion and freedom are mutually ex¬
clusive,, trade unionism would benefit by adherence to
becoming
nothing
infallibility
ward trade
at least have appeared
somewhat tempered; but little or
LOOK
University
After calling attention to the atttitude of
Business indicators have here and there
begun
to turn down
Continuing our custom of former years, the CHRON¬
ICLE features in today's ANNUAL REVIEW
AND OUT¬
Associate Professor of Economics
Graduate School of Business
Administration
high and the
very
After Tnrn of the Year
By WILLIAM H. PETERSON*
it gets under way finds the
still regarded
prospects
Copy
Business and Finance Speaks
We See It
"
new
Price $1.50 a
*
:};i As
The
Thursday, January 19, 1956
on
page
in
State, Municipal
U. S. Government,
40
and
Stale and
Municipal
VICK CHEMICAL
Securities
STATE
AND
MUNICIPAL
—m—
Interesting Possibilities
telephone:
HAnover 2-3700
in Mental
CHEMICAL
Bulletin
NEW
BONDS
Drugs
CITABLIIKID
MCMSERS NEW YORK
ANO
30 BROAD
ST., N.Y.
115
OTHER
I
III
STOCK
Beach
—
THE FIRST NATIONAL CITY BANK
OF NEW YORK
EXCHANGES
Rye, N.
Y.
ARE NOW AVAILABLE
ON
EXCHANGE
STOCK ANO COMMODITY
Broadway, New York 6, N.Y.
Miami
Bonds and Notes
DRUG INDUSTRY"
J. R. WlLLISTON & CO.
DEPARTMENT
BOOKLET
Request
on
CORN EXCHANGE
BANK
Agency
"INVESTING IN THE
•
BOND
Public Housing
COPIES OF OUR
Bond
DEPARTMENT
THE
HARRIS, UPHAM & C?
Members New York Stock
Dept. Teletype: NY 1-708
BOND
REQUEST
120
Exchange
Chase Manhattan
BROADWAY, NEW YORK 5
BANK
34 offices from coast to coast
Net Active Markets Maintained
INVESTMENT
To Dealers, Banks
T. L.WATSON&CO.
established
SECURITIES
1832
Members
of the
<^CtdJuO€4t.
Exchange
American
Stock
STREET
SwUfUMtt COMPANY
0AUAS
BONDS & STOCKS
Executed
On
DIRECT
WIRES TO
our
DEPARTMENT
MONTREAL AND TORONTO
goodbody
8e
Co.
MEMBERS NEW YORK STOCK EXCHANGE
bridgeport
•
perth amboy
115 BROADWAY
NEW YORK
"COMMON
Analysis
Canadian Exchanges At Regular Rates
CANADIAN
Air Lines, Inc.
All
Teletype NY 1-2270
BROAD
NEW YORK 4, N. Y.
\
SECURITIES
Delta
CANADIAN
Exchange
25
FIRST
CANADIAN
Commission Orders
New York Stock
Brokers
and
doxraox Securities
corporation
40 Exchange Place, New
York 3, N.Y.
1 NORTH LA SALLE ST.
CHICAGO
WHItehall 4-8161
request to
Trading Dept.
IRAHAUPT&CO.
Members New York Stock Exchange
and
other
111
Boston
Principdl
Exchanges
Broadway, N. Y. 6
WOrth 4-6000
Teletype NY 1-702-3
upon
Unlisted
Teletype NY 1-2708
Telephone:
Enterprise
1820
The Commercial and Financial Chronicle
.
.
Thursday, January 19
.
1956
(262)
2
The
Brokers,
For Banks,
Dealers only
Security I Like Best
This
Forum
week, a different group of experts
and advisory held from all sections of the country
A continuous forum in which, each
in the investment
If it's Over-the-Counter...
Their
participate and give their reasons for favoring a particular security.
supplemented by
are
wide
New York
perienced trading staff is fully
equipped to
serve you
with some market ex
Anyone
promptly.
and
other
not
New York Hanseatic
Corporation
unex
Stocks
Broadyvay, New York 5
BOSTON
to Principal Cities
ondary
ket
mar¬
their
and
%
.
in
change in the manage-
a
"specialty"
specialty
I he
The
is
A
MCTjONNELIi & I 0#
fcl-jJ
vMemoerb
120
American
Stock Exchange
REctor
7.2
9.6
6.3
19.5
Bag & Paper 16.1
30.6
Minne. &
Ontario
HAMMERMILL
Besides the
2.5
to
Its
its
range.
range,
investors
i
Jntr
ing
T
||
business,
J
whose
wxiose
2-7815
line
is
Woven
started
principal
principal
of
fire
stem from
beltine
s°air tre^s
Characterized
goods
the
of
major
a
sales
rings
tubing
rub-
f l
i
and'
o o r
mechanical
as
thpsp
n g,
rub-
hv-nrndnr-f«
arp
companies1
rubber
which eliminates them
nossihie
as
competitors. Boston Woven Hose
is the largest in the field and com-
petition is wholly by the smaller
less
and
In
known
I
aggressive
rnvrc(11
Bierer
Brokers A
of
With
man-
emarke t value
13 f .ldden
as„
is
the
carried
t'^e
on
CANADIAN
stock
Hammermill
of
has built
and
gressive
Bierer's
task
1953-54
in
crease
1954-55
with
[For Financial Institutions
nor
it
called
tary
ERNEST STENT
dividend requirement
chine.
It
—
here
method
a
and
show> for
through
by
of
ro-
machines
abroad
of
payment
upon
royalty
fee
per
to
a
ma-
through too, with
came
_
,.
textured floor covering in color
of
Boston
the
(1)
Might the directors at
investor to
decide
time
dividend
Hammermill
increase
in Sales* and
earnings f or
Pared
as
Toronto, Canau^
BOUGHT —SOLD
QUOTED
L. A. DARLING
M0RELAND & GO.
Members
Stock
Midwest
Detroit
1051
Stock
'
O
\
Exchange
Exchange
Penobscot Building
DETROIT
26, MICH.
Woodward 2-3855
Branch
-
DE 75
Office—Bay City, Mich.
mill
by
shares
of
two shares
of
Might
(2)
in
a
the
cf its
own
process*
shares
Insurance
E. J. Korvette, Inc
re¬
substantial part of the
purchase price in the form of the
to
Standard Union Life
Hammer¬
buy
exchange
an
and
acquire
com-
to
Trading Interest In
of
held
Hammermill,
by
Woven
has
Company
ments.
After
millions and earnings of $3.41 per
share
in
the
1951
Korean
War
Jn actual
actual
figures, Hammermill's
Common Stock
profits
gressively and
HARRY SIMMONS C,
or
from $20,736,592 to $24,045,911, company witnout any
apd net income after taxes from its common stock?
Bought—Sold—Quoted
Prospectus
on
Request
had
was
its
peak
Boom,
000
disappoint-
sales
of
deteriorated
a
$23.3
pro-
deficit of $432,-
recorded
fiscal
in
1954.
ESTABLISHED
St., N. Y.
But the policy of retrench-
ment
was
having its longer term
.
..
plete6 and^its1 \falue
in better
,
(3)
Hammermill
Might
use
its
In
$909,433 to $1,904,228.
40 Exchanga Place, New York 5,
WHitehall
sales
On
a
rose
Kay°mer stoc7 10 acclU1^ anotner
dilution in
per
taxes
But aside from these r>onsid°ra-
dustry.
tne
standP°inf
ot
n tms connection
expanded from approximately 4%% to over 7V? % during
the period. A substantial part of
interesting to note that some of
this
is
pany
re-
year,
.
the
higher
officers
of
the
N. Q. B.
OVER-THE-COUNTER
in
margins
have,
during
the
'
INDUSTRIAL STOCK INDEX
14-Year Performance of
35 Industrial Stocks
com¬
FOLDER
improvement
N. Y.
4-6627
Ravonier stock to acouire another
ON
REQUEST
present
'
1929
Tel. HAnover 2-4850
Stent
tl0m
years.
3>reerie«nA(iompan^
Ernest
Management had decided to coast share basis this represents an in- ..
*
f
f
along retrenching on research and -crease from $1.04 to $2.27. The".0"®'
product development. Gross in- great increase in
earnings re- yieId, earnings and assets, I concome
had risen to $18 million in
suited partially from
the
in- sider Hammermill an outstanding
1948 and despite the recession of
creased sales and partially from investment in the booming 'paper
1949, the company was still show^ the fact that profit margins after
Tv,
u
,-o
ing profits of $511,000 or $1.37 per
share, more than in most prewar
37 Wall
—
a
share
one
held?
offer
Rayonier
nine
the
same period
in 1954.
St. West
aream
declare
to
of
|| Rayonier fcr each
percent-
1955,
history
for
about:
some
months
recent
bilities
stock
first
73 King
Rayonier
stock,
of
course,
to mind numerous possi¬
age
the
COMPANY
AND
LIMITED
brings
var-
in rubber flooring.
The
stock, the market value (18) of
the Rayonier stock, we find that
the paper business of Hammermill can ba purchased for $20 per
share. This tremendous holding
of
companies,
the
of Hammermill
(38)
paper
i°us
combinations not available before
Motor
.
.
,
The fine paper #industry is in
very sound condition and one of
the outstanding companies in the
industry appears to be Hammer-
process
prices in
come
RotoCure
presses.
$25,000.00
a
did
ml
ket price
Paper Company
miil Paper,
The figures in
the accompanying table
rubber
vulcanization
competitors
Ford
easy
buyer's market
by the 108% in-
RotoCure
licensed
are
made
revolutionary
a
continuous
and Dealers
Mr.
a
crude
but
ag-
team.
not
was
re-
young
management
by the return of
in
a
WISENER
still be $1.74, or well above tne
„_r.TW
Hammermill
search
DELHI
Common Stock
selling at $38, an investor buy¬
ing 100 shares for $3,800, gets in
re-
Partner
y
—
PETROLEUM, LTD.
the
organization,
emphasized development and
sales
the
cast
has
Boston
Trading Market
only
at
company
1,1 Charge ot Research. Dent.
To carry this still further, it
Hooker & Fay, San Francisco, Calif, we deduct from the current mar-
Bierer
Mr.
of
Investment Bankers
Maintained in
re-
Woven.
presidency
•
Brea4wsy,N.Y.I COrtlaNt 7-5680
Firm
since
the
sumed
;
;
of
$99,903.
Woven?
Boston
like
and
that
and
books
1897
$17 per share of Hammer-
over
mill
write
OJfice Tokyo—70 Branches
'
u
or
Established
Home
fnirnvi
£eh shareor atohl
a
knowledge
Yamaichi
fiio
commonstock
has
appeal
vision—
Securities Co., Ltd.
^gg.OO^-
,Tr?rh
that
with
Call
cessfully marketed new products.
"
. ....
interest in a'mrrt 50
The leveling off of crude rubber edition an interest in aimost 50
pHces-price rises instituted lost dtar* o^ Rayomer wortn $1,750,
5"mmer °.bf r?"e,ct®d thls year' ^15?, ^'Cnes Pwi
h»
The possibility that the company mermill alone, without the interis about ready to equaj if not to est in Rayonier, would appear
surpass its peakearnings. Not reasonable for a paper stock on
forgetting to mention anticipated a yield and price-eainingo basis.
current earnings of $2.00 and the If we adjust the Hammermill
^at
figures to exclude the
m§s ratio would be 7-1, something dividends (53. cents per share)
almost unheard of amongst the received from the Rayonier stock,
blue chips and its lesser known we find that Hamme mull's earnrelatives.
ings for the nine montns would
companies.
1951 Mr. John M.
of
SSf
industrial
rubhpr
matting
estimated
«pokci
do
which in-
hose,
iar
glass
friction taoe
hpr
fine
rn;;
Intelligent
a
were
its
Todav
of
a
ago
years
•
prouucis
products
hose
industrial
eludes
ber
75
diverse
a
heir to
the
$1.00
the
°
asset"
est.i mated
ca* ^55dn T like Be
was $25-,61.
Whv
iho
the OTP at around 1
OTC at nrnnnrl 15.
nn
on
Boston
end
improve
o'f
with
of Japanese potential
th° hilar—
on
thi^
IqS
share is possi¬
ble. Book value at the end of fis-
Boston Woven
cosion woven
name is
name is
Pnri
imnrnvp
offices
111.0
^nvestment
Pnnci-.+c
ag
4ares
Dividends have
common.
increase to
narrow
very
a
carried
Aptnaliv
earnings
which is presently "churn¬
one
.
unusual
investors
12.5
20.6
_
have
may
excellent op'rating
^
the common could be improved as
chosen
chosen
II Hose and Rubber Company, tradgs
,
Stock Exchange
BROADWAY, NEW YORK 5
TEL.
m
have
have
I
1
ing about" within
,
4.2
Lily Tulip Cup___
Scott Paper______
been paid on the common in all
but four years since 1905 The
current 60c annual dividend on
rrarketable products, or
new
branch
our
SECURITIES
14.8
2.7
te^ debL 7,3425 shares and gheet
of
par
b% preterred
ment picture.
I
Since 1917
York
20.0
.
reappraisal of intri-
on
perhaps,
New
Regis
Oxford
common
Gomn
to
JAPANESE
844,000
Jack
off
suddenly
with
RIGHTS & SCRIP
wires
In Net
Profits
of old and unprofitable operations
"
Specialists
Direct
111
take
to
^
Birmingham, Ala.
Mobile, Ala.
long
$100.00
in
NY 1-1557
New Orleans, La. -
cate worth or, on the replacement
lies
Exchange
HAnover 2-0700
percent
Sales
Un.
Exchange
19 Rector St. New York 8, N. Y.
Increase
'
In
80c.
Stock
Stock
American
!■
value
.
*
Percent
Increase
St.
York
New
Members
ffi i'7 mintiT'results currently being reported^
^ner
share Canital
there is an unusual feature in
in+S1 IS w $1.3 mhlinn the Hammermill setup and that
n
ization
consists
of
million
their ability
.
Members
to $130
v
»•••
Boston Woven is
comfortably liquid. Current As¬
sets as of Aug. 31, 1955 were more
than four times current Liabilities
sec¬
{ron/$1
'
Financially,
"spe¬
so-called
by about
share earnings
be
cialties" in the
SAN FRANCISCO
Steiner,Rouse&Co.
-
s
dividend
to increase per
which is expected
this
of
recto
important factor in the earnings
picture. It has already met with
enthusiastic consumer demand
d
e
may
termed
CHICAGO
•
•
Wires
Private
kind
Teletype NY 1-40
PHILADELPHIA
t
turn of events.
American Stock Exchange
120
Bar¬
p e c
Associate Member
ahead of sale.
several months, am*the backrunning
log of orders has been steadily increasing. The new floor covering
line alone could develop into an
violent
ring, of course,
Established 1920
WOrth 4-2300
for
experi¬
declines.
Bought—S old—Quoted
-
have been
have
enced
President,
Corp., New York City. (Page 2)
a
-
the
on
Executive ViceWhitehall Securities
Aug. .31» 19ob and .more impor- making fine papers from hard
tant improvements in subsequent vvood pulp.
years can be anticipated. Bookings
As
result, the board cf di-
perience will call to mind stocks
which
have, on the one hand,
made little headway on the upside
small blocks, our ex¬
or
City, N. Y.
Boston Woven Hose & Rubber Co.
interested in
Whether you are
large
Whitehall Securities Corporation
than
Louisiana Securities
E. Goffin,
profit of $287,000 or 71c Hammermill Paper
Company—
per share. In the first quarter of
Ernest Stent, Partner in Charge
the current year Boston Woven
of
Research
Dept., Hooker &_
shows earnings of 41c per share
Fay, San Francisco, Calif* (Page
or 58% of the full
1955 earnings.
2)
Earnings of $2.00 per share are
very
possible this year ending
into
Executive Vice-President
ac¬
securities.
over-the-counter
400
as an
J. E. GOFFIN
nation¬
a
network of wires and
trading markets in more
tive
they to be regarded,
complete trading facilities
Our
are not intended to be, nor
offer to sell the securities discussed.)
(The articles contained in this forura
are
Alabama &
Selections
Boston Woven Hose & Rubber Co.
—J.
Try "HANSEATIC"
Week's
Participants and
been
a
probably
.
profits. What might have
deficit in 1954
attributable^ to the
added substantially to their
"reflected duction in costs that Result from holdings of Hammermill stock,
was
turned
tiie installation M the company's which is listed
patented
"neutracep^process
on
for Stock Exchange.
the New York
National Quotation Bureau
Incorporated
46 Front Street
New York 4, H. Y.
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(263)
A Sober Look at
I N D E X
7
Supported Mortgages
Economist Division of Research and Statistics
Federal Reserve real
estate
Federal
Economist
Reserve
A Sober Look at
System
Page
AND COMPANY
Cover
and debt mortgage market
Missiles and
recent
—Joseph
lowering offered by VA and FHA mortgages, and
finds: (1) No experience to
judge developments should capital
values drop below
mortgagees' repayment ability; (2) unan¬
ticipated rise in secondary mortgages, and (3) government has
in
this subject with the statement
the government's insurance
on
guaranty
of
were
two
all
were
(1) By assuming some, all, or
large part of the risk inherent
nomic
financial system
and on borrowers
alike in the event of an economic
loans to be amortized
monthly payments, by
permitting large loans relative to
values
property
and
thus
much
costs
to
(3)
By
establishing
of
valuation
in
the
case
houses)
new
the
valuation
credit in
the
effects
and
an
same
excessive
of
of
the
influence
of
would
declines
in
value
and
the debt
ing market.
fourth
(4) By making mortgages more
readily marketable through these
influences the government has
duced
capital
to
serious
a
markets
that
term,
tized
aged
re¬
imperfection
(5)
By
assuming
contributed
rather
ment
has
also
large
govern¬
acquired
a
been
the
discussion
of
the
government's
would
still
10
the
ago;
years
of
government
*Paper presented
meeting
The
1955.
Division
Beard
serve
of
author
American
York
is
an
City,
economist
28,
in
the
of Research and Statistics of the
of
Governors
System.
The
of
the
Federal
Re¬
views
expressed by
the
author
are
his
own,
and
do
not
necessarily reflect those of the Board of
Governors.
MOTOR
21
22
COMPANY
25
—Robert
T.
Patterson.
30
_
How Population Movement Creates Markets for
Goods and
Services—Howard G. Brunsman and
Henry S. Shryock, Jr.
Bought—Sold—Quoted
31
Prospectus
one-
long-
valuations
on
request
BUSINESS AND FINANCE SPEAKS AFTER
THE TURN OF T1IE YEAR
Starting
AND
the
on
leaders
in
of today's ANNUAL REVIEW
cover page
OUTLOOK
ISSUE,
the
present
we
opinions
of
Government, Industry and Finance regarding
outlook for
business
in
J.F.Reilly&Co.Jnc.
'
[Commentaries which
today's issue will be given
Jan. 26.—Editor.]
in the issue of
•
1956.
*
*
*
Broadway, New York
DIgby 4-4970
4
Teletype: NY 1-4643
*
«
...
42
In the SECOND SECTION of
today's issue will be found
the high and low
prices, by
usual tabular record-of
our
months, of every stock and bond issue in which dealings
occurred
the New York Stock
on
FORD
Exchange during 1955.
MOTOR
Trend Toward Retirement Age Postponement Cited
by
Mutual
Benefit Life Insurance
Co.
29
i
Steel Demand Seen Unaffected in Event of Automobile
Cutback
COMPANY
75
___________________
Allan B. Mills of RCA Terms Color Television
Dollar
Baby
a
Billion
i
Giving Them Hell, Again
91
(Boxed)
105
We maintain
in
Regular Features
As We
See It
(Editorial)
Bank and Insurance
Business
Cover
Stocks
13
Dealer-Broker Investment Recommendations
Einzig: "British Automobile Recession
HA 2-0270
40 Exchange PI„N.V.
Teletype NY 1-1825 & 1-48441 -
17
Washington Ahead of the News—Carlisle Bargeron___
From
&Mackie,inc.
8
Lesson to America?"
13
a
than 350
Singer, Bean
16
Bookshelf
Man's
trading markets
more
over-the-counter securities
Indications of Current Business Activity...—
Mutual Funds
Direct Wires
135
136
NSTA Notes
Philadelphia
*
Chicago
■
to
Los Angeles
•
8
News About Banks and Bankers
£
20
._
sometimes thought of as being too
Our Reporter on Governments
115
great;
Our Reporter's Report
139
construction
standards
and amortized mortgages
generally are more readily mar¬
ketable
than
now
ever
before.
Public Utility
ervations
though
of
a
decade
our
res¬
Securities
on
ago,
al¬
page
We Recommend the
Purchase
35
Securities
of
101
Prospective
Securities
Security
Salesman's
The Market
.
...
Corner
and You—By
36
The
of
Washington
Trade
and
MARLOWE CHEMICAL
133
—
:
91
Wallace Streete
Company, Inc.
——18
Security I Like Best
State
128
__________
Offerings
The
Continued
4
Securities Now in Registration
mortgages have
certainly
been foreclosed, it is hard to think
of a period in our history when
regrets about real estate trans¬
actions engaged in have been so
i
—1
,
Railroad
the
at
Finance
Dec.
I
Observations—A. Wilfred May
very
by Mr. Wood
the
New
FORD
19
Business Outlook
is
and
Concerning the first of
Association,
stand,
strong¬
compared with
now
Banks, Brokers & Dealers
and
high-ratio, monthly amor¬
mortgage has been encour¬
to the point of now being
ence
direct interest in seeing that gen¬
eral economic
policies are used
annual
subject
the standard type, even when not
insured or guaranteed; the influ¬
in
instability at times in the past.
contingent«liabilities, the
govern¬
might be stated more
ly: The governriient still assumes
risk of loss, but on two-fifths of
weaken¬
a
o n
concerning
and
discourage
restriction of credit in
have
commitments
active market and in
way,
commitments
heated
both
the
Curtice
scholarly analysis. The first four
of our broad descriptions of the
speculative
over-extension
and
pects
mini¬
or
The
credit
and
economic
stability have shown different as¬
(and of construction
of
policies.
commitments
For
Competition and the Taxation of. Co-operatives
mortgage
standards
government has removed
mized
ment's
14
:
considera¬
relationships between the
uncertainty of renewal
formerly so important with shortterm mortgages.
and
the
the
WHitehall 4-6551
12
could not be accommodated in
As the decade has passed, these
and
Production
the
consequence
inflationary
STREET, NEW YORK
15
ob¬
were
reflected
this
to
government's
reduced the
or
markets,
mortgages, if they had to be met,
might seriously complicate the
operation of monetary and fiscal
policies at a later time.
owners (and more general¬
ly, real economic costs) of owner¬
ship and of mortgage borrowing,
cost
eco¬
second reflected the view that the
home
and have removed
approach
weight
ward
periods, the government's commit¬
the
estate
first
WALL
Telephone:
Canada's Continued Growth Seen in Economic
Unity
—James Muir
being
government might be inclined to¬
ing the need for junior financing,
by encouraging borrowers to
spread the payments over long
reduced
of
The
99
10
and
not
were
real
on
tion, and that in
reduc¬
and
have
be
view that the monetary and fiscal
agencies were already giving too
level
ments
lines
two
servable.
(2) By requiring all insured and
by
should
for junk
Obsolete Securities Dept..
Hornor
Bennion
H.
<•
9
____
Against Federal Aid to Education
Vehicle
dream
With lots of jack!
Marketing Revolution—Charles F. Phillips
Motor
no
Our bids
6
___
Factors in Growth of Consumer
Credit—Robert E. Lewis
policies in the light of their
influence
reversal.
guaranteed
they
incentive to consider general
the
on
particulars:
encouraged to engage in transac¬
tions they might later regret. On
the mattter of the government's
im¬
an
of pressure
these
whether families
in mortgage loans, the government
has relieved mortgage lenders of
thereby removed
keep
governing FHA's Title VI
operations, questions were fre¬
quently heard about whether they
lines:
source
help
sound.
being expressed*on at
of
Cobleigh
Planning Wide Expansion *#
—Benjamin F. Fairless
tion
particulars somewhat along these
Britain—Ira U.
Steel Industry
On the matter of valuation
pro¬
cedures and standards of construc¬
This general statement
might have been supported with
portant
Mosby
—Adam S.
of you will recall
decade ago, reserva¬
a
least
stabilizing
from
some
even
tions
economy.
loss and
to
as
markets
Motors
—Harlow
•element into the operation of the
a
way
Perhaps
mortgage
significant
a
a
estate
that
loans
residential real estate has in¬
troduced
such
real
that
and
The
A Case
underwritten four-fifths of all small
property debt.
•
/
ago, I suppose a start
might nave been made very boldly
on
This is
Free World's Capital Needs
During Next Five Years
—G. Keith Funston
cost
A decade
We're willing to Back
The Rising Tide of Treaties and
Domestic Guaranties
sav¬
ings and loan associations which already hold $40 billion in
residential mortgages. Questions real
savings achievement in
the
PIPE DREAM?
5
The Changing Credit Picture in
Agriculture
—Charles N. Shepardson
stability policy with fostering of
implement the Employment Act. Attributes
mortgage fund scarcity and materials cost rise to rapid
forward commitment increase
by commercial banks and
>
3
Supported Mortgages—Ramsay Wood
housing sales
to
»LlCHTEnSTEfR
Coercion?
or
Business Opportunities Inherent in Nuclear
Energy
—O. B. Falls, Jr
,i
conflict of value
notes
Articles and News
;
American Trade Unionism: Voluntarism
—William H. Peterson
By RAMSAY WOOD*
Board of Governors of the
3
2
and Industry..
You
—
Common Stock About
7
—
140
—
'
$1.25 Per Share
—'
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Twice
Weekly
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specialized in
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1956
Every Thursday (general news and advertising issue) and every Monday (complete statistical issue — market quotation
records, corporation news, bank clearings,
staff*
state
;
•
second-class matter Febru-
as
25, 1942, at the post office at New
yor]£i k. Y„ under the Act of March 8, 1879.
ary
„
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following
•
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Albany
&
E.
Copyright 1956 by William B. Dana
f
CHRONICLE
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c/o Edwards
London,
and
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FINANCIAL
WILLIAM
25
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««
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INVESTING CORP.
In
exchangCi remlttances for for-
eign subscriptions and advertisements must
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80 Wall
St., N.Y. 5
BO 9-1600
4
The Commercial and Financial Chronicle
(264)
(7)
(3)
Growth in the country's popula¬
repercussions
lion by 1975.
ment
At
this
casting time it has been our cus¬
to list, without weighting or
selectivity, an equal number of
Budget; propping and ex¬
panding the economy, and provid¬
ing an effective ^anti-deflation in¬
JANUARY 1, 1957)
mated
11 y
classified
as
at
In
just
comnanies
steel
Fairless,
coming
stock
,
viso
pro¬
that in lieu of
the
as
determi¬
nant of
—
both
K.
Wilfred
injected
the
"built-in"
serve as
explana¬
tions for t.:e market's action
it has taken place—the
shareholder
"BULLISH"
\5;VV:
low ratio of busi¬
after
ness
inventories
to
sales.
(5)
(6)
(1)
firms
confidence."
hand,
a
monetary
sector
On
Democratic
permanently
demand
on
an
tion that they will
re¬
liberally
used
at
early
signs
the
over
through
mutual
THE
of
a
change to
Democratic ad¬
a
with
stressing
of
than the inflation aspects.
away
above
for
tative
the
Dr.
that
assumption
and
to
will
it
Co.,
be
hand,
the
decline from
or
least
at
members
of
Exchange,
the
in
reverse
New
York
will lecture
on
Spring in that institution's Adult
Program.
class
be
will
held
The
on
initial
Tuesday,
Feb. 7.
Arnold
prove
Gorrigan With
David J. Greene & Go.
promptly
area
Arnold Corrigan, formerly with
of investment
the Economics
mar¬
by
the
stocks
selling
and
s;
applied
the
come
to
Department of the
First National City Bank, has be¬
come
associated with the Research
it
are
boom
high
very
high
very
further,
Now With Shaiman
is
now
-
profits.
personal
the
net
per
se
yield to the shareholder,
and
in
with
comparison
In
any
(Special to The Financial Chronicle)
;
WERTheim
Members
120
r
Shaiman
Bank
was
&
BROADWAY
YORK
5
Securities of
INDUSTRIAL CORPORATIONS
BANKS
UTILITIES
RAILROADS
MUNICIPALITIES
AUTHORITIES
INVESTMENTS
&
Co.,
Building.
previously
event, Co.
Co.
York Stock Exchange
NEW
*
>
DENVER, Colo.—Duane F. Mc-
in¬ Kenzie has become associated with
tax levies drastically reduce
tax-exempt bonds.
building industries.
at
claimed, the multipliers
and
automobile
are
multiple
'
REVENUE
College
are
pro¬
extraordinarilly high
duction
ages,
And
a
NEW YORK
COMPANIES and
year.
Werner Baer, security ana¬
Company
4,
in 1957 in interpre¬
Education
to
filed
investments at Hunter College this
soaking-the-
forestalling businesslike
difficult
self-
be
reviewing of the past
Stock
reforms.
of
use
and
to
lyst and economist with Bache &
legislation
politics-steered
out
varying
items
At Hunter
debt.
in an Election
(contra Item 5 above), with
rich
via the capi¬
Dr. Baer to Lecture
•
expansion in personal
(7)
being
(2)
The likelihood of
ESTABLISHED 1922
The
contradictory
debt, amounting last year to $13
billion in home mortgage and con¬
year
Additional freez¬
power
relevant factor.
a
<6>av'"^'
Tax
Ford
short-term—bear¬
tending from one to twenty-five
Our tremendous produces
sumer
the
tal gains tax.
The market, #r at least the aver¬
ensuing loss of confidence rather
DEALERS
PUBLIC
ing of buying
been interrupted
of price declines ex¬
The great
of
speculative
of
aspect
buying money.
above)
the
price
3
ket criteria (contra Item 9 above).
(1)
of
1955's
PUBLIC
bearish
past had
periods
flotation
the
enough.
"BEARISH" ITEMS
.
INSURANCE
including
(contra Item 10 above). Pos¬
sible
ing in mind that secular inflation
the
excessive
historically high, after Department of the New York
(contra "Bullish" Item I above).
|their two-year rise of 100%. While Stock Exchange firm of David J.
The post-heart attack uncertain¬
Greene & Co., 60 Beaver Street,
many stocks are selling at reason¬
ties, with the increased possibility able
New York City.
price-earnings ratios, name
DISTRIBUTORS
YORK
growing
The domestic political situation
trouble.
UNDERWRITERS
NEW
Item
stabilization
level
In
of
&
area
consumer
(9)
be quickly and
external
issue in mopping-up the market's
"Bullish"
en¬
ministration,
cAllen
success
pump-priming weapons, including fund sales).
the
with its Fair Deal-
the
possession of stock
rying forward the public's mood larged scale; with general assump¬
"capitalistic
(The
issues,
legislation
Government's
The domestic political situation.
shares.
million
auto,
the boom;
in an Election of the Ford offering, demonstrat¬
(8)
year—with the prospect for some
The anti-inflationary anti-boom
ing the existence of an increased
kind of voters'-bonus relief, with
market for stock in a public that policies of the government, with
its fillip to mass consumption ex¬
must he actively "sold," re-con¬ the possibility that they will get
penditures.
Tax
ITEMS
Likelihood that Ike will run, car¬
with
as
offering. Among tne onequarter to one-half million sub¬
scribers,
the company's dealers
and
employees are taking down
IV2
Possible
farm,
various
>
"virgin" stock buyers,
"soft
years,
the Ford
applicable
the market community.
turn to power,
returns.
.Major, expansion of the demand
common stocks. The public's
of
The healthy
selection, weighting and interpre¬
tation largely depending on the
varying psychological reactions of
the other
earn¬
side of
volume.
May
(4)
they will rat.ier
of
go«d
type.
prices,
THE
with
Prospective growing participation in equity
general upward wage adjustments share holding. Rise of institutional
(lor an estimated two-out-of-three buying of equities; 450 institutions
companies) at mid-year, which coming along for almost a million
should raise the price level and of thn r.pw Fori shares. Advent
and
actually
functioning
and
capacity is
(3)
Inflation
we
mar¬
by
creased
bullish
(10)
the
(5)
which
do)
inject the im¬
portant
outside
steel
as
in
together
to
'
vulnerable
durables, and labor agitation.
criteria:—adequate dividend
yields, buttressed by low pay-outs,
In
following this
pattern,
of investment
area
ket
plan to spend $1.2 billion in 1956;
and GM is "betting a billion."
markets.
other
housing areas—in
with
alone ings prospects, give promise of in¬
likely thus to
f 1 u,e nee
the
counter
run
Possible curtailment of inflation
(9)
billion, or treble
disclosed by Mr.
$59
As
1946.
i
n
and
—
(contra
Industry's plans for vast plant
and equipment expenditures, with
total
construction
outlays
esti¬
con-
on a
spots"
situation in the metals sector.
ish and bearish
ti
Eisenhower's
(2)
so-called bull¬
v e n
in President
new
tom
factors
Several
promoted inflation and expansion, strumentality, for example, sup¬
is also regarded as bullish.
porting the extraordinarily tight
fore¬
turn-of-the-year
invest¬
areas.
(4)
High Defense expenditures, re¬
by the $1 billion pre¬
scribed
translated
as
factors.
affirmed
VARYING ASPECTS OF THE MARKET
psychology
into market movements may well
(8)
By A. WILFRED MAY
"OUTLOOK" (FOR USE
various
on
Thursday, January 19/ 1956
.
market
The farm situation, with possible
tion, estimated to reach 200 mil¬
Observations...
.
.
First
Mr.
National
McKenzie
with L. A. Huey
U.
-Volume 183
Number 5460
...
jMtf
.
'<JL
^W3» -Jt*M
The Commercial and Financial Chronicle
(265)
Business Opportunities
Of, Inherent in Nuclear Energy
By O. B. FALLS*
dramatic evidence of
are
Consider, for just
envisions
the
problems
many-faceted
opportunities of nuclear
the
solved,
need
Mr.
peacetime
Falls
■
anyone
here
remember when this product was
simply
a square
box that
cold
was
power
could
been
double
to
uses
for atomic installations.
ponents
In
Mr.
Falls' view,
Like
popular song about
love, the atom is a many splend-
orS?
To
and many-sided.
the peoples of the world who
remember
Hiroshima,
is
a
thing
i
t
of
horror.
To
the
men
in
the defense of
a
lap", it is
thing
great
of.
impor-
ance*
once
To
FaJls, Jr.
world, it is
To
of
men
a
of
medical
men,
of
To
world
thing of hope.
religion, it is
leaders, it is
known.
ever
mankind
energy
as
power
as
no
a
sure
we
other
source
can
has
of
benefit
in
at
atomic
en-
selling
features,
limita-
tions and economies,
a
»,
in
this
nation
a
we
at
are
thing
a
thing
country,
„
work
on
Francisco, Cai.
peacetime
can
best speak>
resulting
development?
for
some
nected
what
know
we
covered
or
date—will
to
of
atomic
before
lem
look
at
source
but
the
first
atom
let
as
a
Power
annually
lion kilowatt hours of
This is
ever-increasing number of
new appliances, improvements in
older appliances, in lighting, heat-
trillion,
this
figure for
.
.
'low
cost'
our
is going to
economic
very
fuels
will
have
to
to
provide an ever-in¬
creasing amount of energy. Pres¬
reports indicate that such
conventional
an
our
resources
fuel
upon
can¬
not be sustained much
to the ques¬
beyond this
asg
^
rials
1964
I
just
that
and
billion
that
this
sell
small
abundant
We feel
will
hours.
this
This
will have to
new
that
new
energy
of
source
the
atom
energy.
represents
source.
Atomic
more
generating
capa¬
years
growing
.
more
plans
ergy
no
•
ac- «.
Experience
demand
and
all
for
that
power
order!
importance of this electri-
Energy
It is to help meet this enormous
.
our
an
approximately
kilowatt
we
as
The
projected power de¬
mands of the future, in the main,
can
be met only by some more
men¬
nation
than
rather
source.
trillion, forty bilhours. This year, it-
cal energy is obvious. It is
more
and
atomic
the
en¬
General
of
American
Electric—
industry
are
—
cident that the United States with
geared. And industry is a lot bet¬
ter prepared for this task than
only 7% of the world's population
a
most
produced 50% of the world's
ufactured
goods.
More
man¬
than
I
tivity and of
living.
bil¬
na¬
power
i"g. and countless other products
for these demands.
Electric, believe that energy from
We, at General
of
we
standard
must take
ent
a
sources
industry is with the task
putting the atom to work.
(1)
ally broaden the production base
our
of
living,
hard look at
of
power.
in
initial
activities
our
pres¬
We
have
fuels,
Working with natural
nium
we
Electric
been using our great resources of
coal, oil, and gas at an accelerating
rate.
Though we have vast re¬
sources of these fossil
you an
American
to continu¬
are
history in this business to
idea of how far along
our
give
of
However, if
of
can
so
high standard of
our
people think.
speak best of General
Electric's experience in this field;
I would like to review a little
any
other single factor, the abundance
of electrical
energy is the corner¬
stone of our tremendous
produc¬
electricity.
today is to provide the
such
and
conventional
one
.
kilowatt
The
staggering figure, to be
our
his
growth, then in the
twenty to twenty-five years,
next
mag¬
thought in mind, let
estimated
no
Need
problems facing
health
therefore, is im¬
city within the next ten
basic
forty
In
demands."'•
determine
continue
answer
ten
elec¬
If "low cost" energy
prob¬
existed and
as we knqvv it
today, and
project it for the future. *
means
But it is accurate. One of the
biggest
tion
a
one
maximum
"
a
already
was going to
look for the
produce
to
take
new
to
of
reserves
ent
476
present-
us
answer
generation.
accelerating 1 demand
dis¬
relate
con¬
needs of
the concept
when it came
felt
we
"the
nify in the future.
is
| By 1964, it is conservatively esti¬
mated that this nation will require
tion, distribution and uses of electrical energy have been nothing
short of phenomenal.
the
than double
have
been
energy
our
capital energy as the fossil fuels
are small by comparison with the
We, who
upon
energy
as
which
which
lion
of energy.
Electrical
us
tioned
lives. I will refer to several
these,
the
America, seized
ergy
products
from this
many, many areas of our
day
with
have
within
recent
Let's go back now for a moment '
and
consider the
electrical en--
answers to these questions
many-sided and—based merely
on
time
just
double
must
we
book, "Energy in the Fu¬
simply ' ture," Palmer Putnam states that
power
power.
said,
trical:, power
money
dramatic and novel
a
of producing
inexhaustible supply.
an
have
years
now
development of
^ atomic
because it is
We
The
are
investing
the
I
tion of where atomic
period. Furthermore, the increas¬
energy fits,
into the economic structure cf our ing use of fossil fuels for chemical,
many new
services
new
of
single thing which
of which l
and
in
out
land
it be to mankind? What is the
can
are
way
With
a
atomic energy be put to use?
what practical peacetime use
Of
not have
important.
Now the question arises—where
can
this
portant only because all energy is
around the home—all these devel¬
Sa„"se"jbuynio'?rch,^b.rb1recot
not
time
pointed
Atomic energy,
to
seem
up
the advances made in the produc-
a
we
and
in¬
in the atom, and put¬
ting them to productive work.
the
ergy in terms of its market, appli¬
there is
as
unemotionally, market for the
new
that
look
can
locked
sure.
L
San
the
—
Tbe
businessmen
merce,
challenge
past. For, after all, that is exactly
what it is. As businessmen, I'm
dustry
concern.
~~7T~
of
nrnmi«jp
warning.
To
—
all
project whose significance prom¬
ises to surpass all of the great ad¬
*characterizes industry in this
To the un
countlX it is the constant search
der-develnnpfi which g°es on to find better ways
na^ns nf the to do thin&s- In the electrical innauons ot tne
nf
B.
power
now
to
answer
As
that
us
businessman's point of view.
But, first, I will ask you to think
it
throughout
and better ways to get things
And
a
of
kind of progress has
insatiable appetite to find
an
the
be
done.
j WOuld like for the next few
minutes to discuss the atom from
atomic
many improve¬
this single prod¬
of the. past. -It is.the 'harnessing of the tremendous forces
greatest we've
Gf
same
realized
is
should
vances
thing
a
cations,
research
O.
is
Think
interested
our
it
in
We
new
hig^as 65% by 1980.
the
while
dustry.
nuclear plants become competitive, their rate of increase will
Wuh'&J W
And
have
in:
seen
features
new
on.
been
made
uct, the
meet
and
on
have
ments
generating capacity by 1964.
(1) transportation—particularly,
marine propulsion; (2)
heating; (3) medicine; (4) chem¬
istry; (5) food preservation, and (6) the many different com¬
Other business
go
there
to take
to
resources
door shelves, egg holders,
butter conditioners, vegetable
crispers—the list of
expanding
Greatest foreseeable applica¬
production of electric
place of inadequate conventional fuel
estimated
an
practical
power.
tion believed to be in the
be
yet to
atom
It
a
Does
ments,
Wiibcut minimizing
the
minute, the
refrigerator.
the inside? Look at it
today—
revolving shelves, freezing com¬
partments, ice water compart¬
General Electric Company
.
problem.
on
Manager, Marketing, Atomic Power Equipment Department
Atomic Products Division,
opments
such advances.
5
ura¬
energy
1939, two General
physicists were among the
first to isolate U 235.
(2) During World War II, the
Government, with its Manhattan
Continued
do
we
atomic
in
>:
;
.;
<
v.> j
v
•>
on
page
55
: |
k
*
«,
Offices in:
new york
brooklyn
•,
rochester
.
<
;
syracuse
philadelphia
allentown
iancaster
scranton
york
ivnokls
&
*
<
chicago
Co.
chicago heights
san francisco
berkeley
carmel
oakland
main office:
120
v-d'
sacramento"
Broadway, New York 5, N. Y.
salinas
san mateo
santa cruz
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stockton
atlantic city
•
Underwriters and Distributors of Corporate Securities
•
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^ -
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'vineland
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•©'■ Uiulerwriters-and Distributors of State, Municipal
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/
:.
r::
f
-
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w
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•
alexandria
buffalo
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Investment Advisory Service
detroit
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kansas city
Members New York Stock Exchange, American Stock Exchange,
omaha
and Other
pittsburgh
lincoln
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sioux city
toronto
•'
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Correspondents in:
Brokers in Securities and Commodities
Principal Exchanges
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minneapolis
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"
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r
r
'winston-salem
and Revenue Bonds
© Primary Markets in Many Unlisted
.
^
-
6
(266)
The Commercial and Financial Chronicle
'
There's
Missiles and Motois From Britain
By IRA U.
delta
Cheers, and
profit and
|-
*
quite
the
while
e
1
e
y
hit the road, Karl Marx!
here!"
Hawker
For
Siddeley
is
colade
very,very
British;
British
means
after
the
Labor
U.
Cobleigb
distinguished
large
Government
the
English industrial com¬
which, if it were in America,
an
be
between
cross
a
eral' Motors, General
United
Aircraft
and
dis¬
for
Quite
a
deley;
company
and
a
There's
Dynamics,
Pullman.
of
,
S. and
a
V.
Roe
Canada Ltd.
to
and earned
the
liver
Wel¬
ing to consider seasoned overseas'
phases
equities of investment grade.
-
Attlee
disclosed
by
these
Ac¬
To them I would say this:
'Our profits are a reflection of ex¬
cellent workmanship and efficient
the
Gloster
"Javelin,"
an
all
weather fighter, in design pro¬
phetic of the next generation in
aircraft, the guided
missile.
35%
of
which
have
its
mis¬
Can-Car
and
in
the
quest
Can-Car
affili¬
has
come
for
this
also
well
out
book,
business.
'makes
Further, there's
a
But
of- this
drawbacks
count of
housing
con-
was
but to delineate
bore you,
the breadth and
remarks,
In
this
ac¬
intelligently
overseas
equities among
investors,
in
recent
years, this column has, in the pastV
year, reported on Philips NV, De
Beers Consolidated Mines, Royal
Dutch, Rio Tinto Ltd., and Ka¬
tanga.
To this list we are now
s
delighted
introduced,
Sir
of
line with the increased pop¬
American
to
add
Hawker
Sidde¬
ley with its 75,000 employees; and
to direct to your attention its or¬
"
dinary shares. These are now selling around $101A ' to provide a
.
of
perusal-
vitality-laden
sound and
a
ularity of
power..
The
in
and "
expanding major industrial enter¬
prise.
There's more sock than
diversity of Group
earning
type>as is
Siddeley
Hawker
stodginess here.
of
activities, which
to
the
cheerful
Transit
catalog
as
in
reports; and that the prose is sort
of late Macaulay, are the only
buses,
Further, Can-Car
enough
.
small
use
found
not
output overseas.
Thomas
yield to Americans of almost 5%,
Sopwith, from which much of the /after allowance for, and deduction
foregoing has been culled, were of, British taxes. Stack up this
by way of presenting the annual Group equity with representative
Group report, for the fiscal year American ones, and you'll find,
ended July 31; 1955. And it made over the
past five years, Hawker
_
•
Hayden, Stone &Co.
good reading. While results were
given in pounds, we'll try to trans¬
Established 1892
late them into dollars.
Net profits
Electric,
roughly $15,400,000, up from
$12,275,000 the preceding year,
Square
Boston, Mass.
work
and
10 Post Office
NewYork, N.Y.
la
from
to
575 Madison
Avenue, N.Y.
SPRINGFIELD
dividends":were
29L2C
49c.
(on
There
WORCESTER
pushed
was
a
stock
pretty
a;
up
divi¬
our
decent
own
management
theme of this year's
has
been
progressViva
and
progress;
in
the
words
a
good group!"
PORTLAND
AMSTERDAM
Wc
are
'
V '
ill
kre>;.:
Members Principal Exchanges
pleased lo
.
-
announce
V
'•
*•
VU'1
-
lliat
•
'• ••
•
.
•
:
liDWAltD F. WILLETT
r
Underwriters and Distributors
•*"
•;
of Investment Securities
:
-
1
;•»,
is
'
now
/;•
associated with
r;•
.
•
*
'
.
•#
our
: '
..
firm.
'f
■
•
Correspondents and Clearing Firms
E. T. ANDREWS 6? CO.
;
BELL &> BECK WITH
Toledo
BENJAMIN, HILL 6? CO
CADY, ROBERTS
Shields & Company
Hartford
NewYork
& CO
.New York
COBURN & MIDDLEBROOK
Hartford, Boston, Providence
ELLIOTT 6? CO
New York
GROSS 6? COMPANY.".
New York
HALLOWELL, SULZBERGER
HECKER 6? CO.
& CO
HILL, DARLINGTON
ESTABLISHED
V
Philadelphia, Atlantic City
Georgia/ South Carolina,
6? CO....
!
New
Tennessee, North Carolina,
York, Binghamton
Alabama, Louisiana & Florida
Washington, D. C.. Alexandria, Lake Wales, Fla.
.New York
KERBS, HANEY & CO
LaMORTE, MALONEY
H. O. PEET & CO.
;
CO
NewYork
New York
Kansas
>
DANIEL F. RICE AND COMPANY;:...
CORPORATE BONDS AND LOCAL STOCKS
City, Omaha
.Chicago, Ne\$ York,.Miami
CO.
Detroit, Battle Creek, Grand Rapids,
SPRING & CO
Kalamazoo,.Saginaw
--
T~
/
.New York
RHODES
STATE AND MUNICIPAL BONDS
NewYork
MANN, DIAMAND 6? CO
CIA. GENERAL de
^
& HEWITT
KALB, VOORHIS 6? CO
WM. C. RONEY
1K94
Philadelphia, Hagerstown
.......
JONES, KREEGER
,
ACEPTACIONES, S. A...,
Mexico
City
IIAVERTY
BLDG.
Teletypes—AT 288 and AT 142
of
Comedian Jackie Gleason "You're,
MAPLEWOOD, N. J.
MONTEVIDEO
job.
General
the ' Group
asserts ."The
ordinary shares)
509 Fifth Avenue, N. Y.
ALBANY
■s
done
has
Somewhat1 like
were
25 Broad Street
:
edition of the King James version
of the Bible, and the
telephone
trackless trolley cars, sells to the
sales
last year, and exported 60%
been'--
a
.
.
recently placed orders for
$50 million in freight gars
over
to
expanded
,
..
,
vision
July 31., This year he was
to conclude, "The policy
in
,
profits
counts.
'
some
process of building up as oppor¬
railway cars, equipment and cast¬ tunity occurs
This is the most
ings, sold not only in Canada, but successful year in the company's
in fnany other countries as well.
history."
The two major Canadian
The facts that only the Jamily
roads
the more irenic.
Company Ltd.
operation, Armstrong manufactures
of
de¬
can
project
greater extent than
at any other time in the Group's
history .
We shall continue the
aircraft, in partic¬
division
is
a
distin-'' ular the "Harvard"
trainer, the
parlay of
Hawker Siddeley starts off on guished
producer of motor cars, "Mentor";
trainer, and the Grum¬
wooly economics, and production a defense
note, ranking as the and pioneered in manumatiC'
man §2F for Royal Canadian
without vision, vista or
Navy.
vitality.
leading producer of military air¬ elutchless transmissions, and adLet me illustrate what I mean, craft in Great Britain,
turning out justable power steering. The new v Altogether A. V. Roe Canada,
in addition to
the
sixth
Can-Car, has three
paragraph
of
Sir the famous "Hunter" fighter plane, "Sapphire 236" (which comes in
other subsidiaries, employs
Thomas's remarks is all we need: mainstay of the RAF, and used as "saloon" and limousine
18,500
styles); is
"There are those who will dis¬ well by
people,: and is one of the fastest
Sweden, Denmark, Peru, fancy motoring
in
any
clime. <
approve of the apparently large
Holland and Belgium. There's also There's also a
diesel motor di-u growing sections in the Group.
fare
$15.4
net, the
Can-Car
can
its
pretty
a
of diversification has indeed
Siddeley
Switching
you
pursued to
$6 million be¬
General
situation for those investors bill¬
given
the
content
leading transit and inter-urban
Power Company, Ltd., working on
lines; and owns a majority inter¬
applications for atomic power use.- est in Canadian
uninteresting
to
recorded
1955
a year
and
next
Foundry
production
Add
nice reading for Sir Thomas, come
con¬
Can-Car brings
big
group
in
$3 million
ac¬
has
shareholders
shake.
million
devel¬
new
Group's activities;
fore taxes in 1954.
up to three
sound; and
contracts ' for
nuclear research
A.
years,
"Sabres"' in
guided
important
the
(Toronto). This 50 year old
company has rapidly advanced its
earning power in the past four
ate, too, Hawker Siddeley Nuclear-
of the
-
<
an
to be voted on
and
earner
swell
Co.
siles in England and Canada have
been
entrusted
to
the
Group.
Gen¬
is Hawker Sid¬
not
development
of
good
1951,100% in 1954
100%
This Group certainly is ax
common
trol of Canadian Car and
testing plane flight
speed
and another
Jan. 25.
ma¬
quired, for about $22 million,
subsidiaries operate wind tunnels
the
pany
moaning
manner
Ira
ac¬
times
would
or
mal
Force
trait of
in
mood,
the
Air
leader, let us proceed
briskly to the business in hand, to
wit, a swiftly pencilled prose por¬
the
glorious
o 1 d
"E mpire"
sense, and by
no
truly
a
Canadian
agricultural
in
when
Europe.
Carrying on this eminence in
military frames and propulsion,
corporate
but
in
to
riers.
made in Canada powers U.
.
With this somewhat unusual
and
in the - world in
from aircraft car¬
The "Orenda" gas turbine
of
opment
engines
squadron use,
and
line
a
Thursday, January 19, 1956
.
dend of 300% in
turned out; plus
marked
"Hunter,"
Mamba"
specializing in
aluminum;
alloys
are
Nineteen hundred and
fifty-five
in
Its "Sapphire" gas
"Double
forgings
chinery.
become
"Python" have provided the Royal
Navy with the only two turbo¬
prop
d
has
leadership
turbine has powered the
they represent
rect Britisher responding to the
only a moderate return on the
ring of his telephone, we open to¬ greatly increased turnover of our
day's
piece
merely
by
saying operating companies at home and
"Hawker Sid- abroad'." Bravo, Sir Thomas—and
management,
a cor¬
for
plants.
power
enlightenment of shareholders and the
of
manner
Siddeley
famous
company
prefabricated
new
105;
Hawker
public, by Sir Thomas Sopwith, Chairman, on Jan. 11, 1956.
Quite after the
a
and
world
on the splendid
report of Hawker Siddeley Group, sub¬
mitted in London for the
struction
four-jet
a
CF
COBLEIGII
notes in commentary,
some
progress
"Vulcan,"
bomber,' and
high altitude twin jet fighter, the
Enterprise Economist
£
the
wing
.
.
ATLANTA
1, GEORGIA
Long Distance 421 and 422
■?
Volume 183
Number 5460
.
.
The Commercial and Financial Chronicle
.
(267)
time record this year.
Slate of Trade
And
the
$20,000,000.
There
industrial production
nation
as
whole
a
last
for
week
registered some slight expansion
and output showed a
noticeable
increase
above-the
similar
week
There
one
was
level
year
of
the
ago.
moderate
a
decline
claims for unemployment
in<
with seasonal
surance
aluminum
$40,000,000, with
air gages and other mechanical
inspection devices adding another
Industry
Total
metalworking
Hand gages
sales could total
in¬
layoffs
'"'y;
/
will
be
stepped
of
up.
pounds
bright wire. Steel's composite on
steelmakmg.scrap at,$53.33 a gross
ton is up $1.16 from last week.
This is the 11th consecutive week
246
in passenger cars
makers hit
a
Steel's
,r
—
'
price
arithmetical
consuming lines such as
canmaking and agriculture will be
stimulated seasonally as well, it
posite on finished steel
this, week to $128 a net
further states.
changes in such products
$127.60.
if
The
car¬
ton from
recent
butt-
as
not
weld
displacing steel, the
pipe
and
rate
and
op¬
manufacturers
2,428,000
the
on
weeks
annual
companies
rate
tion
*■(
,
as
was
in
1956
is
capacity of 128,of Jan. 1, 1958.
For the like week
the
ton$
ago,
industry's ingot production
for
based
Steel
the
that
steel
of
The
363,090 tons
Iron
announced
erating
capacity and
(revised) a week
concludes this
having 96.1% of the steelmaking
capacity for the entire industry
will be at an average of 97.1%
of capacity for the week beginning
Jan. 16, 1956, equivalent to 2,391,000 tons of ingot and steel for
castings as compared with 98.6%
com¬
advanced
reflects
This
American
Institute
production target of
7,000,000 automobiles.
facilities.
Various
While
rate
pounds of aluminum will be
used
re¬
ported in the apparel, textile and
industries. In addi¬
of
35.2
large
electrical
and
said that
is being
The average number
of aluminum per car
cars
has increased from 29.6 in 1955 to of
scrap price hikes,
this year. A record-breaking trade
weekly.
v
require¬
ments, also, for railroad equip¬
ment,
line
pipe, the
oil
and
chemical industries, building and
road construction and heavy in¬
dustrial
weekly
usage in
7
a
month ag®
96.9% and produc¬
2,338,000
tons.
A
year
ago
the actual weekly production
was
placed at 2,008,000 tons
The
or
operating fate is not
able
because
than
capacity in 1955.
capacity
Continued
on
83&%i
compar¬
is
higher
The.per-
125
page
construction
tion
lor
numerous
plants
shut
down
inventory-taking.
ported
the
creases
It was
noticeable
most
occurred <,in
Pennsylvania,
New
re¬
in¬
New
Issue
York,
Massachusetts
and
Connecticut.
In
the
United
.3
automotive
States
industry
automobile
manu¬
r.)
Z
•
•
facturers
returned
normal-1
k
w e e
scheduling
s ;
a
after
«
of
to
*
i
The
21.5% increase
results, said
Reports," was
last week's
over
output.
Domestic
car
makers,
"Ward's," assembled
an
reported
estimated
152,205 units the past week
to 125,245 during thC
com¬
pared
ceding
four-day
pre¬
session.
The
automotive
weekly noted, how¬
that last week's turnout fell
ever,
1.9%
short
built
a
in
year
the
155,109 cars
corresponding week
Thus, far
ago.
277,450
some
from
$9/460,000 City of San Diego
of
the
United
in
have
cars
San
1956,
the
in the relative-1955
period.
The truck industry,
however, is
thus far bettering slightly the
pace
early 1955.
Truck companies,
and Yields
looking for
(Accrued
an
output of 25,085 vehicles last
week, or 33.4% more than the
preceding week's 18,808 total, and
12.9%
more
than
corresponding
1955's 22,220 units.
On the company
front, Mercury
its scheduling
downward this week, and in
doing
adjusted
became
so
whose
the
lone
output
below
dropped
Dodge
1,200
main office of the Bank of America N. T. Si S. A.
Diego, Los Angeles,
or
San
1.75%
Diego in Chicago, Illinois,
or
New York, New York, at the option of the holder. First coupon
1958
1.90%
(annual) payable February 1, 1957. Coupon bonds in denomination of $1,000 registerable only
3Yz
1959
2.00%
1960
2.10%
as
'V-v
;; T
francisco, California,
both principal
to
' ;
■
••
..
"
■■■.
or at any
fiscal
agent
of The City of San
and interest.
-
,
t
^
3/2
1961
2.15%
In the
3
y2
1962
2.20%
380,000
2y2
1953
2.25%
exempt from all present Federal and State of California personal income
taxes under existing statutes, regulations and court decisions. •
380,003
2%
1964
2 30%
330,000
2
y2
1965
2.35%
2y2
1966
2.40%
2.40%
380,000
r-
380,000
opinion of counsel, interest payable hy the City upon its bonds is
We believe that these bonds
are legal investments in New York and Massa-y
and savings banks and in California for savings
batiks, subject to the legal limitations upon the amount of a bank's investmerit, and are likewise legal investments in California for trust funds and
for other funds which may he invested in bonds which are legal investments
for savings banks, and are eligible as security for deposits of public moneys
in California.
chusetls for trust funds
com¬
330,003
2y2
1967
last
330,030
2
y2
1963
2.45%
released
380,000
2y2
1969
2.45%
380,000
2'/2
1970
2.45%
380,000
2%
1971
100
380,000
2
y2
1972
100
380,000
2
y2
1973
100
375,000
2'/2
1974
2.55%
275,000
2y2
1975
2.55%
sion 4,
2
according
to
Chrysler Division,
meanwhile, anticipated a reduc¬
tion of 1,000 employes, along with
a slight production slowdown this
hourly workers
Treasurer in San Diego, California, cr at the
1957
V2 %
3y2
were
workers,
Additional
3
sy2
units
"Ward's."
week.
or
330,000
5,957.
Division
February 1, 1957-81, ind.
Price
380,000
5,200
percentage jumps
by the Independents.
Although matching other
panies
in
boosting
output
week,
'
380,000
Due
February 1, 1956
Due
in San
$380,000
week's
made
Dated
,
Principal and semi-annual interest (February 1 and August 1) payable at the office of the City
Yield
Coupon
Rate
280,000
Notable
Prices /
or
interest to be added)
'
Amount
company
of
last
.
Amounts, Rates, Maturities
of
Division
.
3V2% and 2Vi% Harbor Bonds, 1956
count, said "Ward's," is 9.2% less
than the 305,694 units turned out
were
Diego County, California
passed
States factories;
"Ward's" slated,
layoffs of 1,107
also ordered
These
bonds,
be issued under provisions of Article 1, Chapter 4, Divi¬
to
Title 4, California Government Code, for various Harbor purposes,
Ford
Steel
were
Rouge plant.
Production
Week
at
Scheduled
This
97.1% of Capacity
Flat-rolled
y.
1976
2.55%
in the
opinion of counsel will constitute the legal and binding obligations
275,030
2%
19 77
2.55%
of the
375,000
at
2
V2
1978
2.60%
375,000
2y2
1979
2
City of San Diego and will be payable, both principal and interest,
taxes which, under laws now in force, may be levied
375,000
,
2%
1980
2V2
1981
2.60%
requirements
continues,
magazine
reported
on
Monday of this week.
The metalworking weekly said
tonnage will not be much freer
The above bonds
are
"Steel"
several
mill
order
threat of
Such
a
months, since
auto¬
not
sharply until the
steel strike is removed.
dip in demand will be
welcomed
by other steel users
which are eager and ready to take
up the slack. 'Easing in demand
should permit diversion of semi¬
finished
to
production
of
the
all of the taxable
property, ex¬
offered when, as and if issued and received by us and subject to approval of legality by
Messrs. O'Melveny & Myers, Attorneys, Los Angeles, California.
'TT.
Harriman Ripley & Co.
The First Boston Corporation
Elyth & Co., Inc.
*
Merrill Lynch,
P..H. Moulton & Company
Fierce, Fenner & Eeane
Lehman Brothers
Security-First National Bank
The Philadelphia National Bank
Salomon Bros. & Hutzler
of Los Angeles
Djcitahle Securities Corporation
In
year.
October
R. W. Presyprich & Co.
Wm. E. Fcllcck & Co., Inc.
-
Lee Higginson Corporation
:/■
Third National Bank in Nashville
Shearson, Hammill & Co.
-W. E. Kuttcn & Co.
Ira Haupt & Co.
Incorporated
Mam Blair &
Ccirpany
Commerce Trust
Freeman & Company
Gregory & Sens
-•
:
December
results, are,
City National Bank & Trust Co.
Company
Kansas
City, Mo.
Manufacture
spection devices
gages
may
set
and
a
Cruttendpn & Co.
Carl M. Lceb, Rhcades & Co.
in¬
peace¬
City, Mo.
McDonald & Company
A. G. Edwards & Sons
I!. E. Work & Co.
Kaiser & Co.
The Continental Bank and Trust
Company
Lawson, Levy & Williams
Salt Lake City, Utah
Stone &
Kill Richards & Co.
Ycungberg
The
Shuman, Agnew & Co.
Irving Lundborg & Co.
Pecples National Bank
Charlottesville, Va.
Ryan, Sutherland & Co.
McMaster KulcLinscn & Co.
:
H. V. Sattley & Co., Inc.
;
Rctfeld & Co.
1953.
of
:
of Cleveland
McCcririck & Co.
better, equal to
or
Bank
in¬
complete, it's- a safe bet they'll
be just as good, it adds.
Tool and. die shipments will be
up 10% this year, according to the
magazine with volume predicted
the record set in
The National City
and
November of last year, new orders
shot above the $100,000,000 mark.
$750,000,000
F. S. Smithers & Co.
Ctffin & Burr
J. Earth & Co.
so
tool
shipment
Dean Witter & Co.
-
Kansas
high in the ma¬
industry, "Steel" re¬
ports
that
some , top
industry
sources
point to a $1,000,000,000
at
upon
Incorporated
products.
Optimism is
While
rate or amount
certain personal property, within said City.
a
heavier
chine
Bank of Ame:i:a N. T. & S. A.
cept
likely to cut their
load
are
without limitation of
2.60%
375,000
motive
for
from ad valorem
60%
375,000
steel
tonnage may
be
easier to get in the second
quarter, provided the dip in auto¬
makers
M.
■»
u
4
'
.
v
*v
.
V
three
holiday-interrupted
< t
Automotive
s
week
■J
programming;
"Ward
last
January J8, 1956
,
Magnus & Company
Wagenseller & Durst, Inc.
Singer, Deane & Scrunar
Hooker & Fay
'
Jcnes, Cosgrove & Millar
The First of Arizona Co.
Stern, Frank, Meyer & Fox
R. D. White &
C. N. White & Co.
Company
..
V-
I
(268J
The Commercial and Financial Chronicle
THANKS
Recommendations & Literature
to
Alloys,
send interested parties
who
on
not
Confusion—Quarterly report containing com¬
fusion, thorium, and uranium oversupply—
also available—both contain portfolio as of Sept.
NATIONAL
Lex
Earnings—Bulletin—Laird, Bissell & Meeds, 120 Broad¬
of
Canadian Metals Survey—Latest issue—John M. Easson &
217 Bay Street, Toronto, Ont., Canada.
Common Stocks for 1956—List of 80
"
1
popularly priced'issues—
—
kin &
appraisal—Stroud
& Company,
Incorporated, 123 South Broad Street, Phila¬
delphia 9, Pa. Also available is a semi-annual appraisal of
City of Philadelphia and Philadelphia School District Bonds.
ment of
Florida
on
advantages for relocation
businesses
new
or
establish¬
Industrial
Development Service,
& Light Company, P. O. Box
3100, Miami
Power
—
32, Fla.
Insurance
wishes
he
the
Industry—Bulletin—John
The
Legg &
Company, 22
Light Street, Baltimore 3, Md.
Harold B. Smith
SECURITY
TRADERS
has
Each
ASSOCIATION
called
^
<
once.
immediately direct
to Edward A.
publication topics of special
to
serious-minded
investors.
Copy F
on
ESTABLISHED
Members New
usual.
ONE WALL
^
Security Traders Association of New York
Final Standing 1st Half of Season
Are as follows for
STREET, NEW YORK 5
Bridgeport
St. Louis
Inc.
(STANY)
Bowling League:
(Capt.), Gold, Krumholz, Wechsler, Gersten
(Capt.), Farrell, Clemence, Gronick, Flanagan—
Bradley (Capt.), C. Murphy, Voccolli,
Rogers, Hunter
Meyer (Capt.), Corby, A.
Frank^l, Swenson, Dawson Smith.
Krisam
(Capt.), Jacobs, Barrett, Siegel, Yunker..
(Capt.), Bernberg, H. Murphy, Whiting, McGovan..
Cable Address: "WALKERIAN"
54
49
Established
45Vfe
H. Hentz & Co.
43y2
Members
New
43
York
Stock
5
Cy Bies
Stock
Exchange
New
Cotton
Exchange
40
Commodity
York
Chicago
New
Exchange,
Board
Orleans
38
and
Life, Fire and Casualty Insurance Stocks—Annual review for
1955 showing individual market
performance of 70 issues—
Walter C. Gorey Co., Russ
Building, San Francisco
*
other
Bernie Weissman
Russ
4, Calif.
35
N. Y. Cotton
Chicago
exchanges
Exchange Bldg.
Detroit
•
Jack Barker
•
Pittsburgh
•
Coral Gables
•
Hollywood, Fla.
Beverly Hills, CaL
Geneva, Switzerland
201
Junker
Inc.
Trade
Exchange
NEW YORK 4, N. Y.
Point Club
Miami Beach
203
of
Cotton
35^
221
Jack Manson
Exchange
American
41
38
(Capt.), Kullman, Werkmeister,
O'Connor, Strauss..
Leone (Capt.), Gavin,
Fitzpatrick, Valentine, Greenberg
1859
47V2
Kaiser
Club
Hartford
Providence
Points
t
Serlen
Point
1900
Stdck Exchange
York
White Plains
Team:
Six-Year Economic Program.
request
G.H. Walker & Co.
Roob, Salomon Bros. & Hutzler, 231 S. La Salle
St.,
Chicago 4, Illinois. Inasmuch as the hotel situation is critical
200
Research
our
».
Topol (Capt.), Eiger, Nieman,
Weissman, Forbes..
Donadio (Capt.),
Brown, Rappa, Shaw, Demaye_____...
New York 6, N. Y. and 1-chome, Tori, Nihonbashi,
Chuo-ku, Tokyo, Japan. Also in the same issue is a discus¬
sion
on
Amending Foreign Investmnt Law and Japan's
investment
of the National Committeemen and
Alternates who
names
Investors Digest
way,
month
interest
for
Growney (Capt.), Define, Alexander,
Montanye, Weseman..
Leinhardt (Capt.), Bies,
Pollack, Kuehner, Fredericks
Japan's Motion .Picture Industry—Analysis in current issue of
"Investors Beacon"—Nomura Securities
Co., Ltd., 61 Broad¬
the
together with
Department discusses in this
Investment Opportunities in Japan—Circular—Yamaichi Secu¬
rities Co., Ltd., Ill Broadway, New York
7, N. Y.
(Canada)—Monthly bulletin—Wills, Bickle &
Company, 44 King Street, West, Toronto 1, Ont., Canada.
our
assesses
prospects for
year,
with attractive
will represent each
group at this meeting should be filed at
Committeemen should make hotel reservations
Barker
survey
selected list of securities
to
He does appreciate this
proof
Jolley, Robinson-Humphrey Co., Inc., Atlanta, President
N.S.T.A.
Manson
C.
new
a
"Chronicle"
January issue of
business
could
SECURITY TRADERS ASSOCIATION OF
NEW YORK
Certificates—Semi-annual
Florida—Information
He
Outlook—Bulletin—Seligman, Lubet-
Co., 30 Pine Street, New York 5, N. Y.
Equipment Trust
The
timely
personally, but since this is
to atttend.
*
as
Investment
&
re¬
possibilities for 1956.
Committeemen
Co.,
.J
Bruns, Nordeman & Co., 52 Wall Street, New York 5, N. Y.
Drug Industry — New Booklet
Harris, Upham & Co., 120
it Broadway, New York
5, N. Y.
Economic
OUTLOOK
and
has
an
organizing meeting of all National
Monday, January 30, 1956*. The meeting will
convene at 10:00 a.m. at the
Drake Hotel,
Chicago, Illinois. This
will be an open
meeting and any member of N.S.T.A. is
cordially
invited
New York 5, N. Y.
Canada—Monthly bulletin—Toronto Stock Exchange, 234 Bay
Street, Toronto, Ont., Canada.
v
messages
Smith
that he is KIM.
80, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
W.f Washington 7, D. C.
way,
with
Mr.
possible he has asked
let them know.
tieth Street, N.
Bank
him
illness.
recovery.
thank everybody
on
atomic map
his
excellent
an
Cor¬
Carbon
Fusion
mentary
inundated
during
turned
poration, 30 East 42nd Street, New York 17, N. Y.
Atomic
Smith, Pershing & Co., wishes
home (15 Fenimore
Avenue, Garden
City, N. Y.) from the hospital and is making
Plastics—Booklet
and
Processes"—Union Carbide and
have
gifts
the following literature:
Chemicals
Gases,
Carbons,
"Products and
B.
to thank the many friends from coast to coast
firms mentioned will be pleased
understood that the
SECURITIES
....
Harold
is
Thursday, January 19, 1956
NSTA Notes
Dealer-Broker Investment
It
...
Amsterdam, Holland
201
New York City Bank Stocks—Year-end
comparison arid anal¬
ysis of 16 issues—Laird, Bissell & Meeds, 120
Broadway,
New York
5, N. Y.
1001
_
Charts—January Year-End Edition of Graphic Stocks
showing monthly highs, lows, earnings, dividends, capitalizations, and volume on virtually every active stock listed on
New York and American Stock Exchanges, covering 12 full
years to Jan. 1, 1956—complete with dividend records' for
full year of 1955—single
copy $10 yearly; (six revised isues)
$50r—F. W. Stephens, 87 Nassau Street, New York
38, N. Y.
NATIONAL
d'AVIGDOR
of
COMPANY
in the National Quotation Bureau
yield
and
National
market
Quotation
performance
Bureau,
over
Inc.,
Averages, both
a
46
13-year
Front
York 4, N. Y.
as
period
Street,
Office:
West
26
in
Uganda
Bishopsgate,
London, E. C. 2.
we
•
—
(London)
Brancht
13, St. James's Square, S. W. 1.
Branches in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
predict:
Fuel
injectors will replace
buretors
in
automotive
Uganda, Zanzibar, and Somaliland
car¬
Protectorate.
Authorized Capital
engines
within two years.
New
Paid-Up
Reserve
Fund
and
also
ce
undertaken
recommend
for speculation:
ac
o
£2,851,562
€3,104,687
description of
exchange business.
and Executorships
The Bank conducts every
banking
we
..£4.562,500
Capital
Trusteeships
139
and
End
CO
to
page
Government
Colony
Head
Street, New York 15, N. Y.
on
the
to
Kenya
Petroleum Situation—Review—Chase
Manhattan Bank, Petro¬
leum Department, 18 Pine
Continued
INDIA, LIMITED
Bankers
Over-the-Counter Index—Folder showing an
up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
used
BANK
Dealers
in
>-
SAATY FUEL
£
For Banks,
•
UJ
Brokers & Financial Institutions
•—
-
Y
INJECTOR CORP.
on 385 Over-tHe-Counter
Securities
Nationwide coverage
through private wires to— '
h-!
UJ.
MORTGAGES
Common Stock
Dependable trading markets
•
REAL ESTATE
UNLISTED SECURITIES
UJ
—
EC
Chicago
Information
available
<t
on
request.
£
^.Dallas Union Securities Co.
Baker, Simonds & Co.
Grand Rapids
111
N.
Y.
Security Dealers Ass'n
Broadway, New York 6, N. Y.
Telephone
King & Qo.
Hartford
WOrth
2-0510
Coburn and Middlebrook Inc.
Los Angeles_
,—Harbison & Henderson
Philadelphia
fXomxtra ^ccxtxitics
A. Riecke & Co. Inc.
Pittsburgh—
DEPENDABLE MARKETS
Legal for Savings Banks
N.A.S.D.
and Trust Funds in
Broker and Dealer
.
Fusz-Schmelzle & Co.
New York
Material and Consultation
TROSTER, SINGER
& CO.
Trinity Place, New York
6, N. Y.
Through The Years
Dependable
to
Japanese Stocks and Bonds
NY
without obligation
Broadway, New York 6, N. Y.
Tel.:
BOwling
Head
Green
0»Yice
9-0186
Tokyo
'
7%
Maturity
Security Adjustment Corp.
1-376
61
—
To Yield Over
on
Members: N. Y.
Security Dealers Association
74
BONDS
®o., Xtrt.
Member
Arthurs, Lestrange & Co.
St. Louts
HA 2-2400
SECURITIES CORP.
CO
:
,
C. H. TIPTON
Members
CO
Detroit
—
</>
Gottron, Russell & Co.
Dallas
★
I—
Glore, Forgan & Co.
Cleveland
BONDS
—
TRiangle 5-5055
DEMPSEY-TEGELER 4 CO.
16 Court
We
Established
1935
Street, Brooklyn, New York City
Buy and Sell All Securities
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
(269)
farms. The average investment on
The
Changing Credit
Picture in Agriculture
at
southern
of
age
Governor Shepardson stresses
well
as
as a
"way
all
i
the
of
problems
of
adequate
estment
n v
and operating
capital, pro-
duct ion
-J.
mar¬
ls
tivity
the
other in¬
dustry, in ad¬
any
hazards
had
have thought of
of
agriculture
industry and
if they were
separate and distinct economies,
each with its own peculiar char¬
acteristics.
Too
frequently
we
have not fully appreciated that
the developing trends of recent
as
to a situation in
have led
the farmer and the city
are
between
similarities
the
which
producer
fully as striking as the differ¬
ences.
There
brought
by
about
and
technology
was
a
team,
a
time
a
when
wagon,
a
a
cow,
a
a
and
ness
to work.
The increased pro¬
ductivity to which I have referred
has
not
made
only
possible,
but
the enlargement of the
necessary,
family farm unit if the operator is
to make the most efficient use of
technology
and
ma¬
con¬
ing
The
value
land frontiers and
increased
the
an
production
re¬
To
much
a
greater extent
the past, credit,
one
properly
of the tools by
in 1954 averaged about four times
which farmers
the 1940 level, or $4,300 compared
with $1,050.
Expenses have re¬
ate
today's
efficient
We
should
expect
mained
acquire and
average
in
these
debts per borrower
declining
farm
larger than
particularly
to meet
which are
also increasing from year to year.
prices and. have now started to
rise again as many of the items
purchased by farmers begin to re¬
flect the price increases
being converted to new types of
These
omy.
their
families
the
on
Neither does it include
ating
capital
current
necessary
cash
expenses,
items
two
farm.
the oper¬
well add
another $8,000 to $10,000 to the
average. Usually this large capital
investment
on
a
may
in
farm must be ob¬
and controlled
tained
recent
by one in¬
at
the
levels
high
of
years
prosperous
with prewar,
compared
tively higher than
rela¬
farm in¬
are
gross
of
dollar
gross
receipts
this
will be smaller than for any
Other year of record except in
the depths of the depression in
dividual.
year
Capital Needs of Agriculture
Farmers' net income will be
1932.
farm
The whole
for
or
of
in
the past,
beginning
among
farmers
on
by Gov. Shepardson be¬
National Agricultural Credit
Conference of the American Bankers As¬
sociation, Chicago, 111., Dec. 2, 1955.
♦An
address
the 4th
000
in 1954, ranged from
of $25,000 for dairy
average of over $100,some
grain
producing
for
operations.
farmers'
credit needs
termediate
are
act
most
the
in
ment. I feel this is one of the most
important
areas
farm lending
of
today.
We
have
noted
the
relatively
rapid rate of farm mechanization.
Fartn machinery is a semi-perma¬
technological revolu-1 about 32% of their
gross compared
nent
type of investment which
agriculture of the last 15 with 46% in
1947-49, and 36% in;
produces income over a number
years is reflected in these figures, 1940.
This smaller share of gross
of years. Just as the income is re¬
as well as the effect of the much
emphasizes not only the cost-price
ceived
over
a
period of years,
higher price structure of the econ-r
squeeze of recent years but also
similarly a loan to purchase such
omy.
With
the increases
that
high cost structure facing farmers
have occurred, the capital needed
machinery should properly be re¬
and the shift that has occurred
operations
ment
in
in the dollar invest¬
machinery and equip¬
ment. Before the war, the average
the biggest
that
note
increase in
operating expense is in the cost of
depreciation on machinery and
paid over a period of years. Ma¬
chinery is only one of several im¬
portant investment needs that are
neither fixed capital, as land, nor
current operating
crop
of
expense.
capital, such
land, farmers are turning more
more to making their present
holdings more productive.
and
land
Many soil conservation measures
and
irrigation systems also re¬
in
this
country
—
both small and large farms
an
about $400.
Today the machinery
$3,100, about
eight times the 1940 level On a
typical commercial farm outside
the South the necessary machin¬
inventory
ery
and equipment may be valued
the
The Agricultural Credit
Situation
averages
What
lenders
farm
are
of
the
the
to
implications
to
changes
to
case
of the farmer who needs
change his farming operation
a
new
type better suited to
in
great
market
conditions,
to
Continued
capital needs and in produc¬
on
This announcement is neither an offer to sell nor a solicitation of an offer
The offer is made only by the Prospectus.
to
buy any of these Shares,
January 17,1956
NEW ISSUE
263,771 Shares
Continental
enlight¬
when
maintain a sustained
program of investor rela¬
Copper & Steel Industries, Inc.
you
which
♦ *
penetrates
the
financial
opinion leaders to the in¬
vesting public.
Common Stock
(Par Value #2 per
through
Such
program
a
We- have
know-how.
skilled
it.
is professional,
team
Our
takes
v
Share)
Stock, the right to subscribe
The Company is offering to holders of its outstanding Common
for additional Common Stock at $10.00 per share for 263,771 shares
for each five shares
ing
to
at the rate of one
held of record at the close of business on January 16, 1956. The
stockholders will expire at 3:30 P.M., Eastern
share
offer¬
Standard Time, on February 2, 1956.
experienced.
and
Five cf our senior associ¬
security analysts,
ates are
and
we
Subscription Price $10 per Share
think and talk the
language
of
the
invest¬
ment community.
We' invite
No
consultations.
obligation.
Prior
Stock
to
at
the Underwriters may offer shares
and pursuant to the terms and conditions set forth in the
and after the expiration of the Warrants,
the prices
Copies of the Prospectus may
undersigned
may
of Common
Prospectus.
be obtained from the undersigned only in such States where the
legally offer these Securities in compliance with the securities
Allen &
Incorporated
laws thereof.
Company
Auchindoss, Parker & Redpath
P. W. Brooks & Co.
GARTLEY & ASSOCIATES,
s
INC.
Financial Community Relations
Share
Owner Communications
68 William Street •
New York 5, N. Y.
as
With the high cost
including equipment, further emphasizing quire and merit longer term cred¬
it than is usually available.
— had
the importance of volume per unit.
A similar situation is found in
investment in these assets of
farm
self-interest
tions
for in¬
of invest¬
term types
tion in
YOU, AS MANAGEMENT,
ened
units
(3) An increasing share of
as
In fact, farmers' net return
come.
per
expenses,
think
to
farmers
occurring
nonfarm econ¬
Production
-
tomed
will be much
have been accus¬
we
South,
an
oper¬
enterprises.
that
average
farms to
fore
of
investing
and
increased
this
broad
so
This is especially true
borrowing
used, must be
farm
per
knowledge
production sources on typical commercial
family-operated farms outside of
largely the result of expand¬
1900,
was
Prior to
15 years.
past
(2)
sacrifice, build himself
chinery. As a result, the capital
has advanced through¬
requirements have become stag¬
out our history but the advance
gering in terms of our former
has been greatly accelerated dur¬
standards for farm credit.
the
expenses
his
than in
and, by long hours of hard
sumption
ing
Production
modem
and
decisions.
per worker in the agriculture in¬
ffom home produced to purchased
dustry now exceeds the capital
power and supplies. With increased
required in manufacturing and overhead in terms of
a
farm and a home. That condi-,
capital in¬
other off-farm activity.
tion no longer exists.
vestment and increased operating
Today the
In looking at a breakdown of
farmer must have technical
costs, the need for increased effi¬
"know-how" as well as integrity, these figures, one finds further ciency and increased output per
and he must have access to ade¬ reflection of the drastic change in operating unit is obvious. In this
quate capital as well as willing¬ farm production methods and connection, it is interesting
to
stead
modern
human
for
output
Farm
produc¬
work
Gov. C.N. Shepardson
years
we
years
de¬
sack of seed
and enough determination could
move
onto a government home¬
to
a
more
that the average farmer frequently
finds himself in need of expert
items that farmers must purchase
to produce at lowest possible cost.
and per man-hour
science
plow, and
contend.
For
acre
been
with
man
farmer has al¬
ways
per
increased
to
of
value
you
expenses
part, this increase in investment
and, in part, the increased
quantity
and
variety
of
other
astounding advances in agri¬
labor.
of
the
which
due
cultural
with
nature
a
and the substitution of capital for
the
to
dition
with
even
of 28% in farm population.
increase
is
almost
has
and
confront
35%
latter
solely
and
salesmanship
that
science
an
crease
This
t s,
e
From 1900
and technology
increasing role as land
frontiers diminished.
During the
past 15 years, with a fairly stable
acreage in cultivation, output has
1940,
played
increased
effi-
ciency,
to
in
and modern household
equipment, which are almost an
essential part of the farm equip¬
ment, if we expect to hold our
capable, ambitious young farmers
and
of life"—an industry fraught with
assistance.
dwelling
worker than in manufacturing. Discusses the
increasing demand by farmers for intermediate credit and the
role banks should play in granting loans of this type.
cultivation.
the
follows:
complex enterprises that farmers
manage now require a range of
,
in
physi¬
The situation
as
(1) The much larger and
skills
capital used in farming—the
land,
huildings,
livestock,
and
equipment. They do not take ac¬
of
expenditures?
be summarized
can
needs
of $6,000 and it is continuing
count
values,
know, the cash operat¬
have increased great¬
ly since before the war, reflecting,
cal
per
major industry
As
ing
increase.
These figures refer to the
the national importance of agri¬
culture, and says the trends of recent years affecting the
farmer and the city producer are strikingly similar. Points out
the technological revolution in agriculture in the last 15 years
has increased the need of capital by the farmer to a greater
acreage in
the
$23,000 per farm in 1954,
nearly four times the 1940 aver¬
to
a
times that of 1940.
reduced
to about
The Federal Reserve System
dollar
the
current investment in machinery
and
equipment is
nearly four
national average, it still amounted
or
tion
Even in terms
or more.
constant
small farms
these
of
$10,000
While the large number
$20,000.
Member, Board of Governors
Agriculture has truly become
much
was
smaller, ranging from $10,000 to
By CHARLES N. SHEPARDSON*
degree
family farms
9
Bernard Aronson & Co.
Goodbody & Co.
Abraham 8C Co.
the
page
re-
79
\
10
The Commercial and Financial Chronicle
(270)
An
The Rising Tide of Treaties and
Federal Domestic Guaranties
By JOSEPH
{
redeem U. S. currency into gold
in
our
be
in
a
an
"Advance
peared in the "San Antonio Light"
of
Nov.
27,
3951,
bearing the
Tide."
"The Rising
caption
the
to
Pic¬ Veale, tells
like
not
tary
The
court's decree.
us:
historical,
P.
"When
that, during the last 3,000
gulfed
there
an
to
growing
pile
foreign
of
treaties
and
agreements.
concluded.
diffi¬
culty,
con¬
The
aloft with her
right hand the
J. M. Hornor
lib¬
of
torch
What Is
she
intently examines the Declaration
of Independence.
Four years later the tide con¬
as
tinues to rise.
In
fact
a
Treaties
a
of
of
lasting
a
which
peace,
parties
are
the
circuit
Court
a
the
compact
is
an
analogy
to
Our government has
bonds payable in gold.
Claims
the
repudiated
"If the great Government
United States
authority
is
of
that
our
in
in
a
a
and dependent
Webster,
agreement
an
it
has
words
or
were
of the
private cor¬
cynically
a
repudiated
engraved
tl$e
its bonds."
upon
Pottage, by Garet
Garrett, page 8.
United
contract,
The
parties and
an
agreement
exchange of promises.
the
will
the
on
requirement for
of
makers
be
now
valid promise.
a
or
of
faith
shall
completely.
end American Stock Exchange
18
tion,
Street,
8r
Boston
h/hh!,;:, h;; '
these
been
questions immediately arise.
"In
been
large.
much greater
1954
number
the
IIow
Great
Our
our
RAILROAD SECURITIES
Leased Line
Bonds
Our
Monetary
Today
than
so-called
of
liabilities
pre¬
Social
dollars
under
Preferred
furnishes
government
in
today is of the order of
magnitude of our total national
debt as reported by the Treasury."
pay
Our
as-
now
dollars, and thus
1955, "As We
taxes
to
are
Treasury
taxes
like
be. paid
internal
generally, and
in
marked
not ear¬
There are
penalties for non-payment."—Hel-
vering vs. Davis,
'635. *
301
U.
120 Broadway
following
with
Dr.
forcibly
pot
are now
with
enues.
to
caps
the
at
pay
i.*.
national debt
conventional
sailors,
Private wire
to
Manion
Founded
Philadelphia
However
—
UNDERWRITERS
—
DISTRIBUTORS
OF
manently.
-
American
ises used
deal been
on
promoter in
it then
the public to sell this
incorporated by
a
NEW JERSEY MUNICIPAL
recently
jail."—Last
two
from
L.
paragraphs
H.
Hume,
Bankers
Boston Stock Exchange
?
Association
Stock
New York
-
Exchange
State Bankers Assn.
Investment Bankers Association
AND
Canadian Stock
•
Exchange
AUTHORITY REVENUE OBLIGATIONS
-O-
25 BROAD
Boland, Saf fin & Co
-
20 PINE
ST-
Bell
■
i
.
'•
•
\
♦
Boston, Mass.
Established 1920
NEW YORK 5, N. Y.
■ft"
TELEPHONE
WHITEHALL
System Teletype—NY 1-535
3-3414
»
*
,
.
;
I
•
•
s
STREET, NEW YORK 4, N. Y.
.......
»
\
•
Bloomfield, N. J.
Washington, D. C.
•
J
-
"
v
•
•
his
.
'
•
•
.
Princeton, N. J.
Oil City, Pa.
•
of
a
North
Canton, Ohio, to the Editor, The
-.v-. >
American
stock
been matched up with
Co.
Midwest
-
Exchange
a
prospectus; and had
1842
Exchange
Stock
*
"Had the arguments and prom¬
MEMBERS'
New York Stock
or
the
spent,
—c*—
ORIGINATORS
for
hotel
Congressman's fare
some
Europe.
for
Shoreham
point is they are gone—and per¬
letter
Laidlaw &
•
rev¬
They may be spent to buy
over-priced
lunch
thrown into the
N. Y.
Teletype NY 1-724
view:
other - Federal
all
;
Telephone REetor 2-4949
619,
corre¬
Manion's
Common
New York 5,
S.
page
and
Unlisted Investment Stocks
revenue
are
way.
any
the
into
-
performance, he would still be in
approaches $300 billion,
Dr.. Clarence
generally."—
I
.
of
internal-
.
this
program
■> ChronicleAug. 4,
See It," page 18.
principal media of exchange
promises to
Guaranteed
Is
Integrity?
Treasury
like
Machine
Company
vs.
Davis, 301 U. S. 548, page 574.
2nd.—"The
proceeds
of
both
to
billions
of
additional
the
States
collections
ity taxes
years ago, our govern-]
liabilities
arising there¬
are
into
go
revenue
—"The Commercial and Financial
DEALERS IN
consti¬
"The proceeds of Social Secur¬
any
mended
testing the
cases
United
The
viously to last year.
*
the
sponds
Security system was revamped in
such
a
way
that
a
staggering
guilty of hav¬
have
two
lected,
/'/<' ,/;/■■/
,
Dishonesty Involved in
have
from
Because of this, some
the
System Called "Social
rrent's
ing broken faith until that breach
Exchange
'
Security"
Validity
promise of
persons
the
to
Since Social Security's founda¬
V
that
is
considered,
Certain
Our
one
as
'*
<r
,
us
Chestnut
101
letter
a
from John S. Codman,
ers
Mass. >'■>
5
from
6,
page
publis1
the United States of America,
have the ability to give in ex¬
Peek
Members New York Stock
27,
we,
person
&
August, 1955 Monetary Notes, No.
treaty, which
a
Below are quotations from the
opinions of the Supreme Court in
Stewart
"'...In
■
,
.
change
Adams
both, are
maker's Con¬
The Requirement
,
be¬
of
tutionality of the Federal Social
poration, no bank would take its Security Act in 1937:
name on a piece of paper, because
1st.—"The proceeds, when col¬
It consists in the
government's dec¬
treaty arid its dec¬
cannot exist in the
\
Commercial
dif¬
no
appears.
laration
of
tween
world's most emphasized treaties,
'
cf
of
courts
science.
the
On
treaty.
are
nation
between
compact
nation."
considering here one
requirement
who
gress appropriates money to pay
it.—Tucker, op. cit., page 782.
From the foregoing, a distinct
fact
that
by
exercise
an
Manion, Sponsor Manion Forum
cf Opinion, South Bend, Ind.
"The
—The People's
"When
the
as
taxing power
of Congress for the benefit of the
general fund of the United States
18.
page
,
laration
defined to "be
"A treaty may be
daily occurrence, and this
impels
Constitution of the
Tucker, said:
Indeed the making
a
to be
his "The
Treaty?
a
United States," pages 721-722, the
lamented jurist,
John Randolph
foreign treaty or of an inter¬
national agreement seems almost
of
treaties
validated
was
merely
Constitutional
istic Coercion?" by Dean Clarence
war
years.'"
of
the
and
in
advertising savings
States render judgments against
bonds as the best of investments,
through the fractional period since
the
United / States
there is/v no our
1860 has not been something to
government is not honest as
method of enforcing them and the'
excite great optimism.
long as the dollar is not redeem¬
judgment is of no avail until Con¬
able in gold.' "—Quotation in the
tinues to hold
erty
individuals
such instruments. There is
The average time they .352.
durability
it
Court
is
currency
Federal
Security Act was passed
by the Supreme Court in
Financial Chronicle " Aug. 4, 19j5,
'Between
peace.
remained in force is two
the
goddess
13 years of
been
of
upon
"sound"
as
irredeemable
Soahr
—
international
With
have
one
Neverthe¬
original
unavailability of any better Treasury "—"The Commercial and
instrument."—Excerpts Financial Chronicle," July 28,
from an article by Dr. Walter E. 1955, "Social Security or Social¬
ference, said the Court in United
the States v. Bank of the Metropolis,
15 pet. 377, 392, except that the
year 1500 B. C. and the year 1860
States
cannot
be
sued
A. D.,' he writes, 'more than 8,000 United
Perry v.
treaties of peace each intended without its consent."
to remain in force forever were United States, 294 U. S. 330, page
by
immense
the
1937,
currency
currency, and it is dis¬
honest currency unless its issuers
confess bankruptcy and point to
.
Jacques
years,
when
Social
unsound
United
the
constitutional
erty, half en¬
estimated
less
monetary
Statue of Lib¬
has
ad¬
easily collectible form of constant¬
ly increasing taxation.
Assistant
Secretary
Treasury refer to this ir¬
"An
great So¬
never
vertised it to the people as a slick,
currency;
com¬
"The
Novicow,
'The promoters of the
cial Security deception
cannot be met without Con-, the
the
is
tured
the
and
redeemable
States, with
authority,
makes
contracts, it has rights and incurs
sociologist. responsibilities similar to those of
John
the
dollar.
not redeemable in gold,
are
the
cf
promise
a
gold,
the Federal-So¬
concerning
cial Security system:
unjust condition...
indi¬
an
in
standard
our
Thursday, January 19, 1956
.
srid
except in foreign lands, a gravely
Yet the Secre¬
the
in a
individual
redeemable
They
gress' consent.
Barbarism," page 8,
Frederick
author,
rency
government's promise
contract is
sult of
In his
been durable.
never
like
treaty,
that
substance of
i3
Government's
.
the holder of such
these constitute cur¬
media
facts
The first
to
conveys
,
re¬
in a contract;
for, unlike the latter, the first is
not enforceable solely as the re¬
failure to
and the "dishonesty" involved
have
on
vidual's
Social Security System.
striking cartoon by Gales ap¬
♦
'
,
with one or more, de¬
conscience. The second
is that this
a
:
important
^Federal
of
mand
A
two
promise
in
•
here
analogy
observed.
our
pends
made to the people. Cites our
fulfill its guarantees,
to
should
compact
Author points out the inconsistancy of binding nature of intejnational treaties and the failure of the Federal Government to
i
ferred
that
Analogy
the
see
promise
MOSBY HORNOR
yJiV; '*•£/Sail Antonio, Texas
f
To
.
.
•
Montreal, Que.
Toronto, Ont.
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(271)
Wall Street Journal, which was
published therein, Aug. 4, 1955.
Conclusionv
As
have
we
analogy between
in
:
K
is
there
seen,
an
cisco
and
for
action
in
Protests
have
our
been
heard
Supreme
and
be
to
ignored
by
to
seem
pendence
overlook
de¬
both
of
the
new
promises
asked of
to be
be
present
treaties
by others
us
offered
supported,
D.
de¬
or
'
■'
to
serve
held
two
i;.;'
-
"
*
•
•
.
'""I,-.
(
,
C.
has
become
McCune
&
C.
connected
with
ST.
LOUIS,
Co., Third Na¬
offices
New
a
at
E.
Booth,
Jr.
is
now
and
Boyce
—
Richard
connected
with
Nemeth
the New York
of
west
City.
bers
and
Stock Exchanges.
the
Governing Board
two-year
members
terms.
the
of
This is under
an
no
offer
circumstances
to
buy,
to
or as a
The
be construed
solicitation of
Berl
as
an
offer is made only by
offering of these securities for sale,
an
offer
buy,
to
means
any
or as
of such securities.
of the Prospectus.
NEW ISSUE
Carry¬
Board
are
'
$3,000,000
&
Sons, and Ronald E.
President
of the '"Ex¬
as
is validity in
the
prom¬
following
to
on
Lear, Incorporated
41/4% Subordinated Debentures, due December 1, 1970
the
for
the
serve
Nominating
put ourselves in
Convertible
current year: Marco F. Hellman of
a
mand evidence of
pletely mending
faith,
among
ugly
Caution
in
validity by
our own
which
that
us
com¬
D. Berl of Edwin D. Berl & Sons;
are
the two
direction
to
employ
Stanley R.
here.
greatbr
thus
bring about
of
Mark
Redemption
Dated December 1, 1955
C.
Elworthy & Co.; M. J. Duncan of
V.
generally in making treaties,
and
Dickover
Calvin E. Duncan &
surely
care
their
Through November 30, 1965
Unless Called for Previous
J. Barth & Co., Chairman; Edwin
breaches
mentioned
ones
would induce
position to de¬
Committee
Co.; William
Murphy of A. G. Becker & Co.,
Price
Incorporated; and Scott H. Stew¬
lowering
103%
Plus accrued interest to the date of
art, Jr. of Shuman, Agnew & Co.
present dangerous rising
delivery
Immediately following the An¬
tide.
a
nual
•
Meeting, the
new
Governing
Copies of the Prospectus may he obtained from the undersigned in those States in
which the undersigned may legally offer these securities in compliance
ivith the Securities Laws oj the respective Slates.
HA,f
V )•
William R. Staats & Co.
Smith, Barney & Co.
January 17, 1956
Shearson, Hammill
Members New York Stock
and other
6
Co.
Exchange
Principal Stock and Commodity Exchanges
NEW
ISSUE
Investment Securities
Research
and
14 Wall Street
$7,800,000 :
Advisory Service
NEW YORK
Chicago, Burlington & Quincy Railroad
Equipment Trust No. I of 1956
522 Fifth Avenue
3Va%
Montreal
Chicago
Santa Barbara
New Britain
*
La Jolla
Newport Beach
Springfield
San Antonio
Beverly Hills
Los Angeles
Pittsfield
Memphis
Hartford
Buffalo
LaCrosse
Pasadena
Middletown
Dallas
Equipment Trust Certificates
To he dated February 1,
1956. To mature $260,000 each February 1 and August 1
from August 1,
Houston
1956
to
February 1, 1971
Basle (Switzerland)
Issued under the
Philadelphia Plan with
20% cash equity
MATURITIES
AND
1961
YIELDS
1966
3.05%
Aug. 1,
1, 1962
3.05
Feb.
1, 1967
3.125
2.90
Aug. 1, 1962
3.05
Aug. 1, 1967
3.125
1958
2.95
Feb. 1,
1963
3.10
Feb.
1, 1968
3.125
Aug. 1, 1958
2.95
Aug. 1, 1963
3.10
Aug. 1, 1968
3.125
1959
3.00
Feb.
1, 1964
3.10
Feb.
1, 1969
3.125
Aug. 1, 1959
3.00
Aug. 1, 1964
3.10
Aug. 1,
1969
3.125
1, 1960
3.00
Feb. 1,
1965
3.125
Feb.
1,
1970
3.125
Aug. 1, 1960
3.00
Aug. 1, 1965
3.125
Aug. 1,
1970
3.125
1, 1961
3.05
Feb.
1, 1966
3.125
Feb.
1, 1971
3.125
Aug. 1, 1956
P/J
fff/orA ffffac/,-
/iev\
Sffmertean S/hteAt
andc(/te*
Aug. 1,
1957
2.85
Feb.
Aug. 1, 1957
e/ty y
(%/}
2.80%
Feb. 1,
Feb. 1,
(orer/umye
Feb. 1,
(ffxc/anye,
Feb.
/ecrdi'ny, ffjccc/ianyjel
Feb.
Stocks
•
Bonds
Commodities
•
Jl
These Certificates
received
war/ft
65
j90 A
Illinois,
Chicago,
•
Qaane fZ/rceO, j\< m tf/orA '/3, <j\( Q/.
are
offered subject to prior sale, when,
as
and if issued and
subject to approval of the Interstate Commerce Commission,
Salomon Bros. & Hutzler
Dixon, Kankakee
Flint,
Ohio, Toledo
Paris, France
•
Drexel & Co.
•
Michigan, Battle Creek,
Kalamazoo
•
Wisconsin, Madison
Tennessee, Memphis (Cotton)
•
London, England
Caracas, Venezuela
•
Bueno3 Aires, Argentina
•
•
•
Stroud & Company
Indiana, Kentland
Incorporated
Grand Rapids,
Union Securities Corporation
Pennsylvania, Philadelphia,
Connecticut, Hartford, Danbury, Meriden, New Haven,
Torrington, Waterbury
Bay City,
6,
ay,
us,
3.125%
fjtyaya, j\fw ty/or/,- 20, *A(ty/.
30
Bethlehem
by
January 19,1956
W.
are
Reinholdt &
Gardner, 400 Locust Street,
con¬
securities business from
88 Morningside Drive,
York
Mo.
City.
The Exchange members elected
Necessary
of
ducting
tional Building.
ises given us in any treaty, let us
very
(Special to The Financial Chronicle)
Avenue,
Clarence E. Booth Opens
Clarence
eron
Park
Meyer
(Special to The Financial Chronicle)
is
offices at 270
New York
DAYTON, Ohio—John J. Cam¬
during
serve
from
2 With Reinholdt Gardner
Corporation is en¬
securities business
.
Nomi¬
a
Agger
gaging in a
Agnew of Shuman,,
Co.,
was
re-elected
of
Kaehler,
change.
fended.
of
The
George W. Davis of Davis, Skaggs
& Co., Warren H. Berl of Edwin
or new ones
by ourselves cannot;
justified,
Agger Corp. Opens
its
year.
serve
over
be
to
one
to
time, therefore,
in
and
as
H.
&
members of the
government contracts and treaties.
At
was
Board to, serve
Richard P. Gross
of Stone & Youngberg, Joseph A.
Johnson of Stern, Douglass & Co.,
Inc., and George J. Otto of Irving
Luncborg &
Co., were elected
for
ad-
the
conscience
on
Board
Chairman
[■ ministrative and legislative bodies.
These
first meeting
Joins McCune Co.
Chairman
of
and the election of
William
con¬
our
,
Calif.—The
Exchange
election
Agnew
dishonesty shown here to be in¬
tinues
Stock
nating Committee to
the ensuing year.
lost
volved, glaring though it is,
FRANCISCO,
Governing
but the
Court;
'
r,
.
the
years,
this
against
its
George W. Davis
Vice-Chairman.
of I"
the Board, three members of the
national agreement. Faith has been
broken in the groups of contracts
mentioned.
held
re-elected
Annual Meeting of the San Fran¬
by our Federal Gov¬
one
given by this
government in a treaty or inter¬
ernment
<
*
promise given
a
Exchange
Elects Officers
!
SAN
contract
a
Board
S. F. Stock
11
mem¬
Mid¬
12
(272)
The Commercial and Financial Chronicle
have
ways we
Fiee World's
since
Capital Needs
Dating Next Five Years
fruitful years
ing
Funston
$90 billion
envisions
capital required for
years' per capita growth.
new
world
assist
U.
to
Man-in-the-street capitalism and
and
leadership role. Foreign investment
world's
S.
growth depends
a
giant
his time, who boiled down the
of
man
once,
complexities of world
a
trade to
simple truth. He said: ".
very
.
a
A
.
take
must
of
some
B's
tmmmm,mmzmm,
but
will
not
B
It
fear
it.
quick
lesson
is
unique
a's
m
i
e r
c
history.
was
ary
G. Keith Funston
with cool,
common
to
find
"An
the
phia,
we
would
another
address
World
Jan.
by
Affairs
13,
free
as
an
of
with
all
that
his
for
joke in
a
incisive
sumed
it.
be hard put
who
man
Mr.
left
Funston
Council
of
so
about
it
was
two
Franklin's
simple
B's pro¬
"A
buying
duce" sets in-perspective one of
the most
haunting of our 20th
century problems — world trade
and the free world's job of living
together.
World Picture Shows Trade and
It
Philadel¬
the
is
a
curious
course
will
$90
need
new
ex¬
billion
of
we
1o
extent
maintain the recent growth in
per
capita output.
■
..,,
are
there
the prospect that
is
with
American
a
we
and
have
that
such
pect to
boom
help
ever
leadership
us—anal
move
underdeveloped
Continued
goodly
a
hopefully
on
The
Members of the New
as¬
majority
great
White, Weld
been
have
and
of
than
of
world-wide
a
that
search
has
national
search
become
for
sary
people
others
than
matter
shall
we
comfortable
any
for
that
poor
We
so
in securities
know, in
Natural Gas
again be
never
long
as
We maintain active markets
poor
rich,
be
flourish.
can
fact that
be
is
to
to be
necessary
can
it
nations
others
Principal Exchanges
Street, New York 5
policy.
some
that
so
commentary on
of history that in some
Co.
Exchange
and
—
a
We have learned, in the course
our growth, that it is not neces¬
of
Other
40 Wall
&
York Stock
there
as
of
Companies
is
desperate want in the world. This
has
Historian
prompted
Toynbee
to
predict
Arnold
the
Boston
20th
century will be remembered
not
for the conquest of
Los
for
disease,
Chicago
Angeles
Philadelphia
San Francisco
Hagerstown
or
Minneapolis
New Haven
Providence
' *
London
Amsterdam
been the first age since the dawn
of civilization
dared
to
make
the
in which people
...
think
it
practicable
benefits of
available
for
the
to
civilization
whole
human
race."
have
We
F. S. MOSELEY & CO.
that trade
ESTABLISHED .1879
real
strength
benefits
MEMBERS
New York Slock
Bo Aon Stock
Exchange
discovered,
road
to
to
from
•
be
gained.
flow of goods, know-how arid
all,
this
If
capital,
would
MUNICIPAL
SECURITIES
of
j
WORCESTER
•
PHILADELPHIA
•
INDIANAPOLIS
SPRINGFIELD
*
is
H I R SC H
world
our
that, despite
fears
hopes
our
are
window
have
have
25
dis¬
America
BROAD
Telephone: HAnover
many
STREET, NEW YORK 4, N. Y.
2-0600
Teletype: N.Y. 1-210
to
come
1636
many
Eye St., N.W., Washington 6
Tel:
materialized
National
Keyser Building, Baltimore 2
8-2545
LONDON. ENGLAND
confidence
in
the
adage
Tel:
the
on
..
.
Representatives'
D'rmct Wire Service
Office4,
Lexington 9-7861
GENEVA
•
AMSTERDAM
New. %.ork, Washington and Baltimore
t
-
"when
the world catches
sneezes
pneumonia." All around
world trade
—
restored,
longer plagued by the fear
expressed
CO.
expectations. Europe,
our
economic
no
&
Members New York Stock Exchange Ond Other
Exchanges
we
our
naught. On the other hand,
of
•
view
single
a
recent
our
its
CHICAGO
us
,
see
beyond
;
opportu¬
to
appointment since Geneva,
COMMERCIAL PAPER
•
The
presents
could
we
through
AND
Corporate and Municipal Securities
clear
way
Underwriters
and Distributors
CORPORATE
in
and prosperity has
peace
enormous.
NEW YORK
A
Midwest Stock Exchange
Exchange
Underwriters, Distributors and Dealers
mutual
emerged; It lies through the two-
nities
•
the
American Stock Exchange
above
BOSTON
finally,
relationships' draw their
us
we
see
upswing, for¬
eign investments growing, under¬
developed
Underwriters
—
Distributors
their
countries
being
pressures
Dealers
:
and
of
PUBLIC
UTILITY, RAILROAD
INDUSTRIAL and MUNICIPAL
held
being achieved.
/
i
But
don'L
of
need
first
115
Broadway
New York
6, N. Y.
l
Tel.
BArclay 7-8800
that
is
every
that
have
it
of
that
vision
ahead
are
edented
is
in
is
The
spreading
globe.
the
free
of.
amounts
The
to take
at
the
to
The
world
years
unprec¬
of", capital
Stock
SECURITIES
that
the
made
going
MUNICIPAL
there
about
for
heavy fixed investments. We have
tried
AND
a
venture capital is really the stuff
the
and DEALERS
the
seen
inescapable.
are
that
is
us
things
corner
second
can¬
special
any
better life—and
several
vision
~
a
CORPORATE
look into the future.
course,
we
are
Exchange
DISTRIBUTORS
,
Our window-on-the-world
not, of
vision
Members New York Stock
UNDERWRITERS,
check,
conditions for freer exchange
people of the world
Langley & Co.
in
foreign currencies into dollars
vantage point to tell
SECURITIES
W. C.
improving
living standards, inflationary
Exchange
to
EMANUEL, DEETJEN & CO.
Members
NEW YORK STOCK EXCHANGE
MIDWEST STOCK EXCHANGE
120
Broadway
•
Telephone DIgby 9-0777
•
•
is
ex¬
coun-
page
tech¬
has
we
at¬
in the next 25 years a
see
in
can
needed
century
for
do—and there is tangible
we
underway—we
supply that amount of investment
But
than
evidence
simply not equipped to
money.
materials
raw
And
—f our
undertake the job to a greater
If
■.
,
raised.
tempted.
Well, unaided, the people of the
world
for
be
can
self-interest
world markets—demands that
needed
be
it
of
national
our
splitting the atom, but for "having
Investments Rising
before
1956.
as
.over
ing workable solutions to major
economic pr®blems is nothing less
some
ago.
that
Americans know today that find¬
more
now
20th
world
on
he
writing the
Independence
required,
once
materials
raw
our
thrust
humor
truth
He
sense, and
Franklin
of
might conceal
for
centuries
vision¬
a
he
But
plicable
in
A
life
our
we
manu¬
amount
is
throughout
We find, for
capital
But the parallel with the past,
think, ends there. The burden of
I
his greatness lies in the fact that
his guidance is as pointed and ap¬
author
that
said
Declaration
would take of
of
is
wasn't entrusted
he
A."
The
on
our
what
Thursday, January 19, 1956
«.
nology.
editor, publisher, financier, econ¬
omist, scientist, philosopher and
statesman. It is fitting and fortu¬
nate that your meeting takes place
during a world-wide celebration
be
able to pay for
what
imprint
an
feed
the
not
are
goods
critical
to
marking the 250th anniversary of
Benjamin Franklin's birth.
produce,
otherwise
deep
lack
factured
(4) achievement of convertibility and U. S. disclosure
standards. Points to NYSE's role in listing foreign securities.
a
ample,
new
basis for
of
scope
five years.
much
the
the
the rest of the free world for the
next
•
not
•
which
we
and
was
a
old
"have not" nation, though
ways
tiplicity; (2) expropriation laws; (3) discriminating tax laws,
There
in
what
elimination of (1) exchange rate mul¬
upon
l.'
is
of
the
to
existence is challenged. And once
we find ourselves in many
potent anti-Communist weapon
as
hopes
estimate
likely to be required
again
earnings totaled $2.5 billion.
seen
and
question
today that we are still badly in
need of explanation and
under¬
standing. We are still living in a
Exported capital doubled to $26^4 billion since 1946 and 1954
growth abroad
His most
spent explain¬
America
.
There
President, New York Stock Exchange
Mr.
day*
were
needs
not"
world.
By G. KEITII FUNSTON*
'
free world's maintenance of next five
the
"have
the full circle
come
Franklin's
.
AMERICAN STOCK EXCHANGE
COMMODITY
EXCHANGE, INC.
New York 5, N. Y.
Teletype NY 1-1973
83
Volume 183
Number 5460.. .The Commercial and Financial Chronicle
'
-
(273)
pressed doubt there could be onfe,
on
the-
proposed postal" increase
On this
A head
the
of the Neivs
*
Y
'
^
^
•
f
'*
;
*.;■
that
the-
-
budget Will be balanced. Yet there
is little likelihood: that this postal
increase wilT be grainted.
: '
In this tight situation the Pres¬
.
v,.-~
' is.
increase, in fact/depends
President's^ claim
..
••
ident; says there* should be some
vying with each other as to which reduction of
the national debt. At
can give the ihost £?..•.
J-/
' a rate of $2 billion a year it would
-is a saddenihg thing. You are not •
A lot' of us had hoped, had even,
take 100 years to bring it down
shocked at the death of the loved expected, < that the
Republicans to the size of
debt that the Fed¬
.one
because...
while
not
"turning
the
clock
eral
government
must
forever
.you'/hav e back," would put a stop to the
maintain to handle social security,
realized for a
trend towards the Welfare State.
or around $80 billion.
"
And for three years they seemed
1 long time" that.
For the past several weeks it
to be trying to do just this. But
■■>. i t h a d / t o
has been apparent that the Ad¬
the President's budget is a com¬
•% come.
Neverministration
was
turning
com¬
f the 1 ess,
plete capitulation. On the eve of
it
pletely around
on, foreign
and
a
national election the pressure
t marks
.the 1
military spending and on its re¬
was too great. It may be that the
passing of an
sistance .*1 towards
spending
for
era.
President, himself, has not yet schools and
for
health.
Only a
made up his mind as to whether
::
It has long
year ago, it made only token pro¬
he will run again. But there
been pretty
cap
posals on the two latter in order
-
•
of Reports of the Hoover Com¬
•
and then in thernext breath asked
a tax increase which is
what
for
Likerthe passing of a very old
loved one, the Eisenhower budget
--
Fenn, Mr.—McGraw-Hill Bool$
Events, 1835 *;; Company, 330 West 42nd
Street,
Street, N. W., Washington 6,
New York 36, N. Y. $4.25.
D. C. (paper ),u $2.00
(quantity Policies to Combat
Depression—A
prices on request.
-1' •
'
mission—Human
.
K
--
•
"
Conference of
Mathematics- of Finance—Paul M.Hurrimel
Charles
and
l.
•
.
beck, Jr.—Second Edition—Mc¬
Graw-Hill
Your
ward
N. J.
the
Future
Strategy
Business—Edited
C.
Bursk
and
Trade
of
by Ed¬
Dan
Committee
(cloth), $8.50.
42nd
Planning
Universitiesr
for Economic Research—Prince¬
ton University Press,
Princeton,
Book
Company, 330
Streets New York
36, n: y: (cloth), $4.75. ;; r
West
the
-—National "Bureau
See-
.
Union
Library:
•
1955
-
H.
.
.
.
.
UNDERWRITERS, BROKERS
and DEALERS
,
apparent
r.
sooner
ter
•i
be
that
or
the
party
Carlisle
b e;-
to
Bargeron
the
promote
it has
come.
Welfare
Both
State.
front
to
ministration
eign
and
CORPORATE and MUNICIPAL SECURITIES
and
military
posals
that
come
have
left
since 1886
spending.
with
up
its
Demo¬
sitated, it is argued, by the Rus¬
sians stepping up of the cold war.
the
If
rittt vwf
Russians
can
make
in¬
us
W. E. HUTTON & CO.
spending through ges¬
tures, it goes without saying that
crease
carry it on for another 10 years.
.y,no surcease,
our
will be gestured to death. You
wonder what has> become-of the
we
-
Members New York Stock Exchange
,
*
Republicans'- claim of prosperity
wtll- be.towards increasing
president, although not completely t
without war. We don't have the
paternalism with the two parties closing the door to a tax cut, exwar
but
too
much
of
our
preparation
vent
to
war,
upon
to
or
MUNICIPAL
knows
NEW YORK
whichever way you want
war
take it.
this
hasn't
CINCINNATI
Philadelphia
*
that
leading exchanges
pre¬
Secretary of the Treasury
George Humphrey is sick at heart
these days. He is claiming that he
has accomplished what he came
to Washington to accomplish, the
balancing of the budget. But he
INDUSTR1AL, PUBLIC UTILITY,
AND
for
and other
pros¬
perity, it would seem, turns
RAILROAD
•
pro¬
cratic critics aghast. This is neces¬
.
in^sljhe
aid
Instead it has
P°sed that there be more of it, i!
back^ Rather, the
around
hog. Similarly its dis¬
position was to slow down on for¬
*nsje?d of cutting down at this
late date ®n.lorei^P
'
1S ?r?7
??eru ls
turned
distributing
went whole
foreign
A
quiet the agitation. The agitawas
not quieted so the Ad¬
tion
-
.
citizen—his education, his health
—is the particular concern of the
Federal government; There won't
be any turning
trend
in
and
I?ce,++-
Now
major political
proposition that the welfare of the
.
Republican
spending, it is about as New Deai>sh as the New Dealers themselves
parties are! .now committed to the
,
the
is
domestic
ac-
ceptance of the New Dealers' philosophy of Federal spending to
.
that
Eisenhower
publicans
forced
doubt
running again; and Mr.
was clearly willing to
go along with them in giving them
a budget on which to run. On the
la-
Re-:
-would
no
been
Burlington, Vt.
Baltimore
Columbus, O.
Boston
Dayton, O.
Hartford, Conn.
Lexington, Ky.
Easton, Pa.
Lewiston,Me..
Biddeford, Me.
Portland, Me.
ac¬
complished, in any real sense. He
has been up against a heartbreak¬
ing task. Now, it wouldn't be sur¬
prising if he eased out of the pic¬
SECURITIES
ture
and returned to his home in
Cleveland.
Business
Laurence M. Marks & Co.
MEMBERS
AMERICAN
NEW
YORK
STOCK
STOCK
EXCHANGE
Man's
EXCHANGE
(ASSOCIATE)
,
Telephone DIgby 4-4000
Teletype NY 1-1109
Priuat* Wire
48
WALL STREET,
Syttem to Officer in Principal Citiet
NEW YORK 5, N. Y.
TELEPHONE HANOVER 2-9500
TELETYPE N. Y. 1-344
\
-
•
Members
Midwest Stock Exchange
Do
Right to Work Laws Hurt
Help
I
-
the
National
or
Philadelphia-Baltimore Stock Exchange
Economy?—Survey—
Right to Work Com¬
mittee, 35 Rust Building, Wash¬
ington, D. C. (5 copies), $1.00.
Economics of Feed Materials and
Fuel
Underwriters and Distributors
-
5
Processing
Problems
—
J.
Underwriters and Distributors of Municipal, Utility, Industrial
and Railroad Securities'
Equipment Trust Certificates
*
Carlton Ward, Jr.—Address be¬
fore the 23rd annual convention
of
the
Edison
Electric
Institute
—Vitro Corporation of America,
'
261 Madison
Corporate and Municipal Bonds
1
A<' r**VJ'•
,
•'
*■
Avenue/ New York
16, N. Y. (paper), on request.
'
.1
Education
Equipment Trust Certificates
tuelle,
in
Bank and Insurance Stock Department
France—France Ac-
Southern
221
Building,
Washington, D. C. (paper), 25c.
First Three Years of the Schuman
1
~
Investment Preferred Stocks'
...
^.
4
>
.
Plan
—
Derek
^
—
In¬
Economics
of
Great Britain,
Bank
for
and
Regulations in
Settle¬
(pa-
How\4o„ Save
BOSTON
BUFFALO
•
HARTFORD
•
PHILADELPHIA
•
On
Division
Nitrogen
SYRACUSE
(prices
How
to
on
Save
$7.5
of Allied
Billion
a
Philadelphia, Pa.
Atlanta, Ga.
•
Dallas, Texas
request).
and cut your
•
Year
Federal Individual
Income Tax 25%: Condensation
Grand Rapids, Mich.
Rochester, N. Y.
•
•
Chicago, III.
•
Aurora, III.
Detroit, Mich.
•
Your
Chemical & Dye Corporation, 40
Rector Street, Nep York 6, N. Y.
CLEVELAND
•
Money
Farm Income Tax—J. K. Lasser
—
Broadway, New York 6
Boston, Mass.
Albany, N. Y.
Per),
65
Other Offices
Supplement 11—
International
ments, Basle, Switzerland
Corporation
Primary Markets in Equity and Senior Issues
Sociology, Princeton University,
Princeton, N. J. (paper.)
;
Foreign Exchange
Union Securities
Q
ternational Finance Section, De¬
partment
Common Stocks
Curtis Bok
St. Louis, Mo.
Springfield, Mass.
•
•
Eau
•
Manchester, N. H.
•
•
—
A
Bibliography — Industrial Relations Section, Princeton Univer¬
sity, Princeton, N. Jv (paper),
$1.50.
" '
" "
;
-
•
.
13
•
•
San Francisco/ Cal.
Buffalo, N. Y.
•
Claire, Wis.
'Muscatine, la.
St. Paul, Minn.
Williamsport, Pa.
f
•
Columbus, O.
Flint, Mich.
*
Pittsburgh, Pa.
•
* Scranton, Pa.
Wilmington, Del.
I
14
The Commercial and Financial Chronicle
(274)
The Marketing
example, during the last 50 years
alone,, the number in; marketing
Revolution
has
increased
against
PHILLIPS
By DR. CHARLES F.
As
?
^
that
individuals accounts for
Perhaps
ture
for
that
a
us
the
which
in
by
Marketing
tative
place in
our
the
term
You
see
this
day,
the
to¬
im¬
56%.
exactly
in
is
greater than it
even
was
f','' *'r
Guest entitled "Good Business":
store, I'd
drive the grouches off my floor!
If I possessed
and Practices
'il
v.,.'.;
-
'/■■■*■:
that
dur¬
we can
n
;
oc¬
I'd
let
never
a
shop
some
or
substantial
a
^ offend the
gloomy
folks who
guy
buy;
increase
Fifty years ago little attention was
given to them. At that time execu¬
.
.
work,
;
Nor let
tives didn't worry too much about
in
in
scientific ap¬
the thinking of those engaged
marketing activities.
in
(3)
Recognition that merchan¬
who draws my pay
man
a
0 drive customers of mine
away.
been
revolutionary.
Fifty
got an idea of a
product for which
he
thought
there might be a market. He hired
years ago a man
couple of workers and began to
a
to
come
marketing policies.
than
revolution
seen
more
a
marketing problems is
step in the right direction—and
it marks a revolutionary change
has
Changing Marketing Policies
■
as
to
a
today
recognize the many, is an essential function of
marketing
validity of those lines of Edgar A.. marketing. Here
again, the change
?
''
marketing executives
this tool
proach
experience was exceptional. dising or product
planning or de¬
The majority of those engaged in.
velopment, as it is referred to by
'
■
research, and while our re¬
techniques are still rather
crude, the increased emphasis on
search
that
available, it is ob¬
this percentage today
that
marketing research
with tech¬
compared
as
nical
dinner in another restaurant. But
current comparable
a
18 years ago.
the
turn
it
in
out
his
Charles F.
•
Phillips
.
else came
along with a better
product; if the market was not
there, he failed, and went back•,
to his old
job of selling for some¬
.
performance of marketing
Census figures make it
one
.
-
midnight oil worrying* about With
courtesy, and make him feel
their after-sale service policies;^
0 t^at I was'pleaded} to'close the
rather, if
their
product
brokedeal,
' '
' -. „' '
down, they would decide in each
Because tomorrow, who can tell?
individual case whether or not
out of every
.
away
ucts.
from them with better prod¬
They have learned that to
this
avoid
ber
engaged
production.
in
result
♦An
Just
States?
this:
Such
For
price policies.
willing
we
to
has better silks,
lace,
■
.
;
Or special
'
in
or
place
supplement existing lines. Repre¬
...
riJ
merchandise
produced., Comjieti-■<
products
only difference, 1 believe, is
in the treatment folks receive!
must
be
studied
com¬
continuously, and contests
ditional
uses
of
and
products
itff
automobile; that is,:
merely begin with one model:
and stick to it.
be
improved.
ufacturer's
All in all, the
merchandising
man¬
an
have
us
policy.
easy
must continue
cies
j(2) More emphasis
ing research.
on
market¬
discov¬
to
with
even
result
the
poll-;
our
20 years ago
of trying
customer
is
a
direct
to find out what
wants
and
under
called
—
as
exemplified
consumer
by
so-
surveys—is but
a
changing conditions.
It r small
part of today's marketing
be dignified for a company to t
research activities.
We also use
policies and it
to forecast sales, set quotas,
practices—but we also need to re-
r
may
Mto Or/*
favorable
most
Greater reliance upon ad¬
as a selling tool.
I will
(4)
not
bore
the
revolutionary growth
you
with statistics
vertising in recent
become
a
major
•
member that there is
dignified
r>-
tool for
well
goods
consumers'
goods. In fact, today it
serves
several
as
as
purposes:
(1) It aids in the introduction of
As.
than
nothing.more...
corpse!
a
set
v
result of all the thinking
a
measure
standards for wholesalers and
retailers,
new
salesmen's performances,
test
package
products
to
the
market
through familiarizing potential
Continued
design,
on
page
•
outlook
company
have
resulted.
have
been
shall
SOUTHERN
MARKETS
of
not
Immediate
system
gives instant
throughout the Southeast and Southwest.
quotations
and executions
are
available
to
the
even
attempt to list all
example,
discussing
which
has taken
tail field
,
could
we
hours
the
spand
revolution
place in the
GARTMAN, ROSE & CO.
re¬
alone—shopping centers,
and self-service, the
MEMBERS
NEW
YORK
STOCK
EXCHANGE
self-election
devepolmcnt of
Equitable customers.
and
practices
fact, so many
changes that I
In
them, let alone discuss them.
For
direct wire
we
an
mass
retailing. Or
MEMBERS
AMERICAN
STOCK
EXCHANGE
(ASSOCIATE)
might, and profitably, devote
hour
the
to
impact of fashion
marketing. But let me just
emphasize four of these changes
on
EQUITABLE
1
Securities Corporation
-
.
,r
DALLAS
ATLANTA
•
•
HOUSTON
HARTFORD
•
•
322 Union Street
Nashville 3, Tennessee
..
*
BIRMINGHAM
GREENSBORO
\
•
•
NEW ORLEANS
PHILADELPHIA
•
•
MEMPHIS
JACKSON
Two Wall Street
New York 5, New York
which
I
believe
important to
to
you.
be
especially
-
(1) Increased recognition of the
customer point of view.
"C
for
producers'
.marketing ; men c have given to
their policies, major
changes' in"
SYSTEM
to
It has
years.
selling
as
of ad¬
„
•
WIRE
re-,
vertising
have .'traditional
/
the
obtain
sponse.
what circumstances. But customer
Instead, we; research
adjust
to
existing line, and of tim¬
ing the introduction of new items
In part, the greater
bet recognition which is given to mar¬
successful marriedi;
keting research today as compared
long ago that this is not the
key to a successful business. Our
competitors won't let us follow
such
communication
is
job
of
one
to
marketing world.
may
ered
)-JLjac/p
j
Well, this
the key to a
life, but most of
\/
same ways
successful
a
you
jf»'
replied; Recognition of this fact represents
wasi a
revolutionary
change in the
successful married life
a
produced in exactly the
^JfrMtsAy///e
Equitable's extensive
to
learn methods by which they may
ment his
as
SERVING
be
may
held to obtain suggestions for ad¬
seeking constantly to im¬
prove
his present products, of
creating new products to supple¬
that
PRIVATE
con¬
,
The
devotee
with
.
tors'
*,
•
manufacturer
the
to determine their reactions to the-:
.
.
pleasant words and smiling
j eyes;
of
retailers, and wholesalers
sumers,
-
prices, but it lies
sentatives
must be in close touch
gloves, or
successful married life. He
Offices
\
patronize another store,
versary
of his wedding to Mrs.i: ice-.to the
customer.
It
is cur
Ford, the great automobile manual obligation to discover what he
facturer, Henry Ford,- was•askgd< wants, how and where he wants
how he explained his long and a
it; and -under what -conditions.
\
Eauitable
.
are
as
to
...
Is not because the busier
pany money to marketing policy*
-:.j;In other words, today's market¬
formation?
On the fiftieth anni¬
ing plans must be based on serv¬
"f/artf/orcf
/Yeu/%r&
\
seminar, such
having here today?
a
much executive time and
so
X
of
to
come
Why
fffim rn'ummiiminiini
r/oustottj
matter
a
are
we
SSSSHgagSH
|
To
them, price
finding a unit
cost figure and adding
something
for
profit,
And still again, 50
years ago can you imagine your
company
letting you have time
was
address
off to
HiiHiiii'ii
This improvement may take
ucts.
.
by President Phillips be¬
fore the Marketing for Management Sem¬
inar, Toronto Chapter, American Market¬
ing
Association,
at
the University
of
Toronto, Canada, Jan. 6, 19S6.
Marketing Revolution has taken
place in this country and in the
they must con¬
improving their prod¬
on
they should trouble themselves to; 0 He may want stuff I have to sell, the form, for example, of a better
Or again, many exeeu-s; And in that case, then glad he'll be quality of product, more attrac¬
tives of 50 years ago would feel;
to spend his dollars all with me. tive
packaging, eliminating prod¬
quite out of place were they; to
ucts with which users have found
The reason people pass one door
sit in on a present-day discussion:
fault, or adding new products to
of
when I say that
mean
centrate
repair it.
*
a
all
If
basement.
the market proved to be there, he
succeeded—at least until someone
one
the
by marketing activities is growing
far more rapidly than the num¬
grow
years
,,
I
restaurant, de¬
to sit elsewhere.
small
.
con¬
What do I
where
his
or
not
would be
employed in my coun¬
try performs marketing functions.
These figures also indicate that
the number of people employed
growing
United
sit
given
While
vious
four people
of
ahead.
should
.
clear that at least
to
determine
to
corpo7
,
that,
the
men.
represen¬
areas.
else.
direction you wish to look. concentrating on selected chan¬
To * take
T o d a y's
just
two
illustrations, nels of distribution rather, they Yd treat the man who takes my
large manufacturers
invested
to
let
time
and spends a nickel or have too much
glance at what has happened to sold to anyone who stood ready to
the number of people employed buy from them. They didn't burn,, ..a.dime
someone else take their markets
-- <
*
and
in
had
figure is
functions.
tinue
a
course
any.
a
marketing
couple of
of a
a
the title of - spite my desire
When we reached an impasse in
president to its
key marketing executive. By 1938,- the final decision, I exercised my
this percentage had increased,
to, consumer-king rights and enjoyed
"revolutionary."
can
Revolution—
will
of
of American
vice-president
With
economy
years
in
both
by.marketing
18%
group
to
describe them in nothing less
Distribution
and
but
rations
capita production.
ing the past 50
or
portance
the
trip to the West Coast. He wanted
today
1920,
ago
in the amount of executive atten-'' I'd never keep a boy or clerk .
with mental toothache at his
tion given to
economic changes,
the United States
accom¬
panied
them
in
is
it.
have
have
been
of
one
practices
taken
recent
years,
who
dures, methods, and policies have
have been go¬
ing
met
seller
come
cupying key executive positions, it
is not surprising that recent years
Canada
and
per
I
illustration, look
still spent on
still
great changes in marketing proce¬
good point of depar¬
today is to observe
great
through
high
freedom
giving
system
our
our
a
While the total amount
other
I
cupied
years
Concludes
executive.
across
prices, and in a host of
"largely" be¬
say
occasionally
summers
In
just ahead when competition is
expected to be at an all-time high. Terms advertising a major
selling tool for goods of all type but stresses need of other
factors in developing a successful marketing program. Sees
today's marketing plans based upon: (1) service to the cus¬
tomer; (2) marketing research; (3) product planning, and
(4) selected channels of distribution. To avoid possible mar¬
keting failure, President Phillips recommends an adequate
organization, property trained personnel, and delegation of
responsibility by limiting people reporting directly to an
the
in
I
cause,
effectiveness,
advertising
study
establish
at the key executive positions oc¬
College President describes the rapidly evolving changes in
distribution and sees marketing at the Frontier of greater
importance
disappeared.
as
*
second
our
times,
"the
damned" has largely
customer be
increase for
vT' 'C-, ''\i
production.
President, Bates College
**
nine
three-fold
a
philosophy of
Today that
>
Thursday, January 19, 1956
...
Much of
■.
the seller's philosophy
the
customer
expressed
grocery
to his
in
50
the
years
story
is
ago
of
son
the
in the basement of the
"Son, sand the
vinegar,
and
sugar,
get
stairs for evening prayer." •
NEW YORK 5,
ONE WALL STREET
TELEPHONE
WHITEHALL
3-8200
the
store operator who called
store to say
water
of
concerning
up¬
:
TELETYPE
NY
1-2122
N. Y.
105
(275)
Chronicle
Number 5460... The Commercial and Financial
Volume 183
15
O
A Case
which
never
Against
:,we
have
■
the facilities that the
lations
Bennion, pointing out businessmen of America for a quarter
century have been fighting to prevent the Federal Govern¬
ment from taking- over industrial and professional activities,
calls attention to recent moves toward Federal support and
control of public schools—"the very citadel of liberty itself."
area
with our
pronouncement
keeping
in
he
while
still
was
University.
»'
particular
President's
great
popu¬
I :;.
L'
That's
at
Columbia
1
firmly believe that the army
of persons who urge greater and
Education.
on
that
of
need,"
a
Describes activities of White House Conference
in which
people cannot af¬
ford to build the schools, to pro¬
Dr.
danger of centrally controlled
"I
greater centralization of authority,
education, and lists four statements presenting the case against
general Federal Aid to Education. Concludes it is sounder
and
greater and greater depend¬
ence
upon the Federal Treasury
are really more dangerous to our
form of government than any ex¬
ternal threat that can possibly be
business for those who spend the money to have to make it.
For
dedicated
•"We know that there are many
areas
vide
on
are
we
will
and
proposition that the. respon¬
sibility for educating our young
is primarily local."
By ADAM S. BENNION*
Chairman, Study Commission on Education
Commission on Intergovernmental Relations
Quotes President Eisenhower
want
to the
Federal Aid to Education
of
don't
so
other fields
in
of control
kind
a
Colleges
increased
reporting
are
enrollment of prospective teachers
of from 5 to 54% over 1954. Then,
too, states
rich
reservoir of talent among college
are
discovering
a
graduates of yesteryear who be¬
cause
of
marriage have not been
available in the recent past. They
are
now
full-time
accepting part and often
employment in schools.
Surely, businessmen
that
superior teachers have frequently
been underpaid. Once we can find
a
method of
distinguishing be¬
tween the
agree
mediocre and the
out¬
standing teacher—we should put
the
premium of increased pay
upon the latter's performance.
century, the
a
.
planned
the
•
U. S. Government Printing Office.
(2) "Federal Aid to Educationor Bane." A 50 page booklet
Roger
Freeman.
Available
through the American Enterprise
Association—Washington, D. C.
Boon
by
(3) "The Report of the Commis¬
on
Intergovernmental Rela¬
A
very
brief summarystatement available through the
U. S. Government Printing Office.
sion
tions."
(4) The 48 state reports to the
White House Conference.
The
ral
resource,
medicine—not
to
ness
of the organized effort, check
the
personnel
and
of
cal
of 2-1
trial activities.
had
or
—
combat
;
the
cita d
.
e
1
o
Conference
at
the
White
House
Education—it
on
was
perfectly clear that the adminis¬
trators
of
ganized
mined
that
as
to
school,
they
have
are,
the
date
domain
in
of
America
the
Gov¬
field which
has
states
or¬
deter¬
Federal
ernment enter upon a
to
well
are
the
been
and
local
communities.
The
was
was
a
White
House
stimulating experience.
well set
up
on
the part of
1,800 people around 166
ference
tables.
♦Summary of
an
It
and allowed full
and free discussion
some
Conference
Those
in
address
by Dr.
nion
con¬
charge
Ben¬
at
the 60th Congress of American
Industry sponsored by the National Asso¬
ciation of Manufacturers, New York City,
but the major ad¬
so,
the
after
conference—before
the
presumed
•
public school, elementary and
secondary.
—
table
discussions
form
some
of
Federal
Aid.
f
com¬
mon
week
and
very
liberty itself—the-American
Last
dresses at
march against
Dr. Adam S. Bennion
to educators
—
become
Not only
j
a
—
The purported balance
laymen
substantially a 3-1
relationship the other way round,
Now you must
prepare; to
working on the most criti¬
subject before the conference
—Finance.
other indus¬
yield to
last' two
tables
mention
hundreds
the
of
How Can We Best Meet Th«n?
The
full
to
answer
that
eral
Aid
statements—three
ques¬
We
that
all mindful of the
are
of
because
economic
tially
two
The
States
are
better
able
Continued
on
page
••
and
birthrate—there
increase * in
are
of
is
We
a
building needs. You
aware too,
that the estimates
those needs presently before
backlog
available
are
nation
be found in the written
tests
have
tabulated
were
discuss
at
your
convenience:
Common Stocks
•
Preferred Stocks
in the
Commissioner
the
may
office
to
of
*
of
of
State and
V
from
reports from the
Superintendents of schools
—certainly interested parties and
beneficiaries of possible favorable
Public
We
act as
Municipal, Railroad, Industrial,
Utility and Canadian Bonds
underwriters, dealers and brokers
in these issues.
legislation.
"
j
Like
President
of the delegates, based
very many
their
Eisenhower,
recommendations
upon
a
of limited aid to those
needy states unable to meet their
program
classroom
The
shortage.
Conference
the
not
was
voice of America calling for gen¬
eral and unlimited Federal Aid.
Let
me
quote
from
the
dent's message: "The first
that
education
of
Presi¬
thing is
our
young
estimates
Two
give us pause
before we accept the data as con¬
clusive.'Oregon listed a deficit
Kidder, Peabody » Co.
against her building needs of $14,000,000. Washington, her neigh¬
bor, larger by 50%, listed a.deficit
of $250,000,000.
In
the
estimates varied
room
way
Needs
Boston
all
Chicago
New York 5, N. Y.
•
San Francisco
Philadelphia
from $16,000 to $49,000.
can
so
should be free. It should be under
we
the control of the
easily
be
trans¬
wants—especially
into
formed
York and (American Stock Exchanges
17 Wall Street
at total cash costs,
arriving
school
founded 1865
JMetnbers K_ew
if
Our Axiom of
foot the bill.
locality.
trolled
It
by
family and the
should
any
We know that
be
not
central
education, centrally
controlled, finally would
The
con¬
authority.
lead
to
think that
in
not have to
point has been made
addition
there
we may
is
teachers.
an
to
Institutional Investment
that
building shortages
,
Service
alarming shortage of
Fortunately,
Teachers'
NATIONAL CITY BANK
ofNew York
State and
Financial institutions
Municipal,Bond Department
avail themselves of
are
our
invited
to
services.
TELETYPE NY 1-708
'l
Head Offices
55 Wall Street, New York
1
Salomon Bros. & Hutzler
Dealers and Underwriters
73 Offices in Greater New York
of High-Grade Securities
Members New York Stock
Members American Stock
Member Federal Deposit Insurance
Boston
Philadelphia
San Francisco
Dallas
\
Exchange
Exchange
SIXTY WALL STREET, NEW YORK 5,
Corporation
fi¬
nancially to meet their own edu-
fact,
wars
one
sociological.
The FIRST
essen¬
last
a
State
not
the
•
—together with an unprecedented
Education
pro¬
of them
—
depression,- with a
consequent shortage of materials
and
Korea
discussions.
they
most
And of Teachers
*
sive
course,
Fed¬
is
simply presented under these four
Backlogs of Building Needs
>
y
the
filed, but they
caught the public eye.
general
Education
to
eral Aid.
Objections and reservations had
been siphoned off in the progres¬
Of
against
case
-
_
power,
,
Statements Against Federal Aid
-
But,
granted that
there
are
presently critical needs in the
field of education, our question is
tion without resorting to a policy
gathering
to
be
of general Federal Aid—is avail¬
businessmen
of
America
have thoroughly democratic, but once v arrayed against us."
been fighting to prevent the Fed¬ again
All of us are aware of the vital able in four recent publications.
a
capable, well-organized
eral
Government
from
directed
taking and
minority
showedH significance of
education in a
(1) "Federal Responsibility in
over
such. how effective it can be against an republic. And we champion the
the Field of Education." ^A 150
enterprises as unorganized and undirected mis¬ cause < of
improved
educational
transporta-; cellaneous group.
processes i even
though we are
tion, the natu¬
Would you know the effective¬ opposed to the principle of Fed¬
quarter of
a
booklet available through the
Superintendent
of
Documents.
page
Cleveland
N. Y.
Chicago
West Palm Beach
87
16
The Commercial and Financial Chronicle
(276)
comparable,
;
Bank's
Bank and Insurance Stocks
in 1954 City did not have the
as
ever, this would not
over
WALLACE-
materially change the 14%-plus gain figure.
This Week
the
were
of the New York
United
States
Bank Stocks
—
but
trends in interest rates and
1955
reported
obligations—to loans, that one would
have had difficulty predicting
year.
double
anything but a substantial increase
in
operating earnings for the
Following
the
are
per
that
versus
1954
losses
in
in
sum
1954;
leading New York
securities
These,
the profits
as
J. P. Morgan, for example,
1954.
1955,
operations.
large
as
versus
profit of just about
a
National
City
1955
a
loss
of
1954 profit of $7,313,000; Guaranty, —$1,707,000,
a
+$10,169,000; Chemical Corn —$1,295,000,
000; Chase —$8,784,000
1955
+$16,520,000.
versus
+$2,157,-
versus
And the 1955 losses
$4.73
have substantial offsets in the form of tax savings.
Not only that,
16.62
19.16
but the sales of investments enabled
put the funds
Chase Manhattan
3.26
3.53
Chemical
3.18
3.62
12.23
14.71
3.38
4.25
favorable
4.30
4.87
selling compared with that relationship at the end of 1954.
3.37
3.88
following schedule shows this for the two year-end dates:
1.80
2.20
2.94
3.22
16.01
21.67
4.68
4.90
Bank of New York
4.41
4.49
Chase Manhattan
Bankers Trust
Bank
,
of New
$4.24
York
Corn
Exchange
Empire Trust
First
National
City
Guaranty Trust
Hanover Bank
—
Irving Trust
.
Manufacturers
Trust
J. P. Morgan & Co..—
New York Trust
United States Trust
.
™
„
to
work
except in the
a
of merged
cases
Another
are on a pro
far
so
earnings
are
column
from
averaged
measuring)
is
one
of
had
the First National holder
as
predicted
operations.
(a
not
increase
an
Whether
strictly
was
facet
slightly
earnings gains
14%.
over
10%
percentage
gains
This is
by the New York
one
are
most, if not all of them, the earnings establish
an
....
«.
,
the
more
these bank stocks
BOSTON,
are
The
14.7%
13.8%
the Boston In¬
Monday,
vestment Club to be held
Jan. 23
*
>
-
Rowe's
Wharf.
Yacht Club,
at the Boston
Mr. Hooper's talk
We
Shall
"What
entitled
12.0
16.4
Do
15.1
—
National City
17.6
Bank—,
.
13.3
14.4
15.0
J. P. Morgan & Co.———
Colonial Trust
14.4
13.8
17.0
——
New York Trust-
13.1
16.8
-
—
14.7
Company
United States Trust
Federal
14.4
.
mentioned
below
the
15.3
other
are
earnings,
ol
Banks pursuant
of
to the
provisions of the Banking Law of the State
of
New
York
and
the Federal Reserve
Bank of this district pursuant to the pro¬
visions of the Federal Reserve Act.
the
reflected here.
the
December 31, 1955, published
accordance
with a call made by the
on
Superintendent
tabulation
n. Y., a member of
System, at the close
20,
Reserve
business
for
adjustments
York
New
of
in
The
condition of
report of
16.6
14.4
——
#
not
for W. E."=
13 5
13.3
Irving Trust
all-time high.
Lucien O.
—
14.7
15.1
Manufacturers Trust
of
Mass.
the meeting of
at
12.9
15.1
_
Hooper
Co., will be the speaker
Hutton &
is
-
O.
chief analyst
Hooper,
12/31/55
13.2
—
——
Guaranty Trust
1954
and
are
is
First
of the largest operating
First National City earnings figures for the two years
at which
L.
showing
Empire Trust
in
means
years;
earnings
Chemical Corn Exchange-
used, the increase
City banks in
runs
^
12%
over
better
price: earnings ratios
Bankers Trust
concerned.
to
the
of
12/31/54
forma basis,
mathematically accurate
whether total dollar figures
or
of
to
profitably in loans, where the rate of return
Hanover
This
banks
Price: Earnings Ratio
of First National City Bank, that consolidation
case
pay-off
banks, the data
more
the
70% higher than it does in investments.
some
Adjustments have been made for stock dividends and splits;
and in the
being
Hooper
To be sure, the banks in all
their
First
Hear Lucien 0.
total dollar gain of
anywhere nearly
loss of $966,000 in
a
$1,596,000, and
share
operating earnings figures, compared with 1954:
.
had
case
were in no sense
from this end of the business in
City bank stocks from investments—principally
Government
one
however,
in the shifts
a
13
$25,500,000,- bringing the net of the
City banks to $202,400,000 for 1955.
Such
Boston Inv. Club to
deposits, while for three-quarters of 1955 they did. How¬
This percentage gain is translated into
By ARTHUR B.
of First National
use
Thursday, January 19,,1956
...
,
In
other
stocks,
on an
than
they
words,
despite the
earnings basis,
are
markedly
better
better values in the market today
assets
balances with
other
institutions,
in¬
Cash,
banking
cluding
were a year ago.
...
OFFICE • HOME
• MOULDED •
FLEXIBLE • COLORFUL
process
$20,264,308.03
Government
States
United
MAPS
items in
collection
of
COMPARISON & ANALYSIS of
balances,
reserve
cash
and
OUR YEAR-END
and
direct
obligations,
guaranteed
20,016,720.21
of States
and
political subdivisions—.—1,799,658.20
Other bonds/ notes,' and de'
J
Obligations
16 New York
City
□ The World 3x2 Ft
$15.00
bentures
;
□ United States 5VzxV/z Ft— 45.00
and
Loans
(in¬
discounts
$3,154.95
cluding
114,000.00
stock-:
Federal Reserve Bank
Bank Stocks
over¬
-.
29,959,663.92
drafts)
Will be sent
on
□ Canada 4x4 Ft.
request
45.00
□ California 3^x4 Ft.
Laird, Bissell & Meeds
MEMBERS:
NEW
YORK
AMERICAN
120
STOCK
to
EXCHANGE
50 Congress St., Boston,
TIFFT
CO.
a
and
49
Springfield, Mass.
.
Pearl
39.50
□ Wisconsin 3x4 Ft
vinyl plastic base and
these maps are made
lifetime.
They're
washable.
in
37.50
.
fir»0 South
DIMENSIONED
Demand
..
Write
DUN
WOODCOCK, HESS & CO., INC.
S. Broad St., Philadelphia, Pa.
WILMINGTON, DEL.
Spring St., Los
Angeles,
NEW
&
quantity
in
send
space,
BRADSTREET'S
99 Church
entire
Ad
Time
INTERNATIONAL
deposits of individ-
and
partnerships,
uals.
MARKETS
deposits of individuals,
partnerships, and corpora¬
1,810,163.41
1
tions
Street, New York 8, N. Y., Dept. N7.
,
$50,114,664.87
corporations
to
of
Deposits
States
United
504,053.12
Government
Name
Calif.
Address
All
City_
a
prices quoted
are
f.o.b.
Zone
-
Philadelphia
except
the
State
world
map
which
po¬
1,948,000.00
institu¬
banking
of
Deposits
in¬
in handsome leatherette container.
and
subdivisions
litical
cludes parcel post charges and is mailed
States
of
Deposits
LINCOLN LIBERTY BLDG.
PHILADELPHIA, PA.
HAVEN, CONN.
$74,610,838.90
assets
LIABILITIES
3
decorative.
St., Hartford, Conn.
123
44 WHITNEY AVE.
368,215.01
—
.
MITCHUM, JONES & TEMPLETON
1UJlL®LNG
142.532.31
—
assets
Other
total
water¬
Self-framed
Amazingly light in weight
can
be hung with a few nails.
They're educational, informative and
.
SCHIRMER, ATHERTON & CO.
Mass.
BROTHERS
1387 Main St.,
a
Af¬
346,598.15
*
plastic.
Bell Teletype NY 1-124849
&
last
proof
DIRECT WIRE CONNECTIONS TO
SCHIRMER, ATHERTON
on
plastic coated,
BROADWAY, NEW YORK 5, N. Y.
Telephone BArclay 7-3500
□ New Jersey 2%x4 Ft..
$150,370.36, furnifrure and
fixtures
$196,227.79——
Customers'
liability to this
institution on acceptances
outstanding
Printed
EXCHANGE
STOCK
45.00
+.v,V'
owned,
premises
Banking
tions
——
11,916,675.33
v
and
Other deposits (certified
officers'
checks,
2,229,200.85
etc.)—_
TOTAL
DEPOSITS $68,522,757.58
\
executed by or
account of this institu¬
Acceptances
for
and
tion
Underwriters-Distributors-Dealers
Underwriters—Broker*
DETROIT STOCK EXCHANGE
•
•
Brokers in
M«Dowell
M1
an
Reserves (and
and
Commodities
YORK
TELEPHONE
KANSAS
CITY
ANdover 3-570$
CAPITAL
•tThis
.
TELETYPE
CG
McDonnell &fo.
MT.
Established
CLEMENS
Retail
Trading
120
<
Exchange
—
\
American Stock Exchange
Telephone: REctor 2-7800
•
and
of
deben¬
total
par
liabilities
for
and
$2,015,722.44
purposes
I, Frank A. Hayes, Asst. Treasurer of the
Broadway, New York 5, N. Y.
Detroit
—
—
consists
with
MEMORANDA
secure
1905
Members
of
pledged or assigned to
other
G50
New York Stock
/
value
$74,610,838.90
capital
capital notes
and common stock
of $1,500,000.00
Assets
GRAND RAPIDS
ACCOUNTS—
institution's
$1,100,000.00
MILWAUKEE
$5,511,767.23
—
TOTAL LIABILITIES AND
tures;
NEW
v
86,884.00
AC¬
COUNTS
Rights—Scrip—Warrants
"
ac-
capital)
CAPITAL
TOTAL
CHICAGO 3, ILLINOIS
DETROIT
524,883.23.
retirement
count for preferred
(ASSOCIATE)
39 SOUTH LA SALLE
STREET
$2,600,000.00
2,303.000.00
—
—
fund
Surplus
Undivided profits—
%
.
Securities
DWESTSTOCK EXCHANGt
AMERICAN STOCK EXCHANGE
$69,099,071.67
ACCOUNTS
CAPITAL
Capital +
MEMBERS NEW YORK STOCK
EXCHANGE
—
Investment Securities
V..
&
373,714.63
-
TOTAL LIABILITIES
Listed & Unlisted Securities
Straus, Biosser
202.599.46
outstanding
Other liabilities
sl
Asbury Park
above-named
that
best
the
of
institution,
above
my
hereby
statement
knowledge
certify
is
to
true
the
and belief.
FRANK
A.
HAYES.
Correct—Attest:
Francis
Joshua
R.
B.
Frederick
Steyert)
Powers
T.
J-Directors
KelseyJ
Number 5460
Volume 183
The Commercial and Financial Chronicle
...
(277)
gaining
British Automobile Recession
grand
Works
in
through
Unanticipated auto production decline held most important
of recent London stock market setback by noted British
economist. Dr. Einzig traces impact and visualizes a causal-
lead to
curtailment of
a
it
during
week
of
sharp'setback on the London
Stock Exchange. The hostile cam¬
paign of criti***
c
i
s m
the
against
of production, is re¬
symptomatic. Whatever
be the industrial situation in
can
had
that the motor
industry is experi¬
t
o
with
but
by far the
most
it,
impor-
tant
cause
the reali¬
zation that all
is not well in
the
automo¬
bile
industry.
Britain
in other
encing
as
be little doubt
recession.
a
The Austin Motor
British
on
Works, which
automation
Institution
of
of the
Production
Engineers last summer, Mr. H. J.
Graves, one of the executives of
that firm, stated that, largely as
a
result of the installation of
number of man-hours
Amidst
conditions
recession,
however, automation is distinctly
.
T,
,
.
gave
employed.
Since,
capacity is now'
there
and
is
demand
no
,,
au¬
coun¬
may
overtime
current
carry
the
.
m1
credit
increase
..
worked
has
declined
out
orders,
existing
decision
of
in order to
contracts. But
Standard
Motors
Automation Discussed
The
^
reduce
reasonably high level,
a
the
and
week,
could
have
full
been
**
such
tion owing to the lower spending
power
W°
automation.
of the workers.
This
is
a
lesson
which
is
well
3
Does the B r i t i s h experience worth remembering. It is not con-
sight this experience
appear to lead to the con-
teach the lesson that» in such cir~ fined to Britain, although the Uni-
is against
the interests of the industrial
the
For
cumstances, automation should be ted States has
resisted?
By
For
means.
no
if
Britain alone does not swim with
^different the tide' her exPorters wil1 be
reach
conclusion.
fact
that
it
become
unahle to compete with their
more
no
balance of
pay-
ments problem, an acceleration of
inflation through
excessive wages
claim would induce the Administration and
the Federal Reserve
possible to produce 3,500 vehicles in a four-day
loss of
^e?nJ^rafhanhaH
lower than it
duce employment to a larger ex- of curtailment of production, and
now
is
automation
in
was
the
of
before
Motor
the
Works
spite of the increases of wages
in the meantime. This
granted
that the firm stands
means
ter
chance
the
the
Austin
real
back.
Works
cause
The
has
not
been
of the present set¬
view
that
has
is
There
of automation at
progress
been
of
regaining
bet-
a
its
mar-
progressive rivals.
,
of
resulting
foreign markets would
,
..
,,
ten* I"an
in
even
The
would
recession,
a
,
re-
,
be
as
,
.
is
,
result
a
essential
.,
,
.
This entails the risk
,,
.
,
.
,
new
than
.
,
labor-saving
installations would make it possible for employers to
more
,
adopt disinflation-
ary measures.
reduced, the existence of
automation.
what
to
authorities
reduce their
staffs—unless
they are prevented
*
by annual wages agreements. In
_
_
United
the
States
as
in Britain,
excessive wages demands
able to bring out the
effect
of
are
there
is
duce
the
ployees.
inducement for pro¬
no
cut
to
ducers
no
their
number
In
prices,
need for them to
of
their
and
automation,
UNDERWRITERS AND DISTRIBUTORS
MUNICIPAL AND CORPORATE
re¬
SECURITIES
em¬
.
.
spite of the increase
.
CORPORATE FINANCING
Singer, Bean & Mackie, inc.
40
New York 5
Exchange Place
NY 1-1825
HAnover 2-0270
&
1-4844
FIRM TRADING MARKETS
IN OVER 350 STOCKS
Avn Alstyne, Noel & Co.
Members:
New York Stock Exchange
Direct Wires to
Fewel &
52
American Stock Exchange
WALL STREET, NEW YORK 5
Co., Los Angeles
Reynolds & Co., Philadelphia
Arthur M.
Krensky & Co., Inc., Chicago
Philadelphia Office
Room 831,
Western Saving Fund Building, Broad
li-
unfavorable
PRIVATE PLACEMENTS
At Tour Service
of
.
pro- purchase tax. The Austin Works
employment could have continued to sell 5,000
been
first
elusion that automation
has
for
an
for
arid the
lately, though many firms have to
keep it up, in spite of a decline
in
'
,
for
necessary they can cut prices, maintained in spite of the increase
And there is a tendency to defla- of productive capacity through
the
has
shorto week
At
u
vehicles,
however
5,000
employment
numbers,
fully
corresponding increase in man¬ tion makes for deflation, there can
power. There have been very few be no
simple answer of "yes" or
redundancy dismissals or even "no." It
sympathetic if not very logical
depends on the general
cuts in overtime. Notwithstanding
fall in Government loans.
conditions prevailing while auto¬
technological
improvement, the mation is in
People do not derive much com¬
progress. So long as
fort from the evidence of con¬ industry was barely able to meet
boom-like conditions prevail, au¬
tinued consumer demand and of the full demand, and labor re¬
tomation is liable to be inflation¬
scarcity of labor in most indus¬ mained scarce.
ary
rather than deflationary.
tries. Beyond doubt, the amount
i
and
week
staff
their
rise to a wave of pessimism
business prospects in gen¬
eral. Hence fall in equities
of
credits,
instalment
squeeze,-
a
the
keep
to
in
wages claims, there would have
been no need for restrictions on
deflationary. It enables the
tomatic transfer machines, his mo¬
kets at home and abroad than it ever 1S to try to av01d recession,
tries, that in¬ tori works increased the
weekly would have stood if it were still The main reason why it became
dustry increased its capacity to an
output from 3,500 to 5,000 vehi¬
working on the basis of its higher necessary in Britain in 1955 to
excessive degree. Import restric¬
cles. It is to be feared that this
pre-automation costs. But for its curtaii
tion in Australia, but
consumer
demand
was
especially experience, in which automation
the decline in domestic demand
technological progress, it might
was
followed by a reduction of
owing to excessive wages"
due to the credit squeeze, the in¬
the working week, will greatly have become necessary to reduce
stalment credit restrictions, and
strengthen trade union resistance employment even more, for even
the increase in purchase tax
rates, to automation. Until now, amidst
3,500 vehicles a week would have
was bound to make this fact evi¬
the inflationary boom-like con¬
been in excess of demand.
dent. The decision of the Austin
ditions prevailing in Britain, au¬
Motor Works to put some
To the highly controversial
18,000 tomation simply meant an in¬
employees on a four-day week crease in the
output without a question whether or not automa¬
about
moderate
more
u
unit.
per
of
been
*
than offsets the decline of the
working
3,500 veweek, it would have been
however,
is leading the way in the cut in
the output, is one of the most up
to date factories in Britain. At a
conference
i-
j
of
vehicles
as
general, there
-
outmore
output at
at
cost
garded
may
do
Einzig
the
further increase
a
may
something
Paul
in
to
Govern-
have
In
point blank the latest
demand, indicating a will¬
ingness to face a strike rather
wages
agree
the
wages
too much, and this reunfavorably on the balance
payments. Had the workers
creased
acted
while maintaining the volume of
a
possible
refuse
than
assume
of
higher
in-
ducers to
remained
Works
hides
t
m e n
was
to
the
ancj
the
tin
recession.
a
in the volume
crease
question,
to
production
because
that, had the capacity of the Aus-
Insists automation
improve Britain's international competitive posi¬
greater unemployment threat than automation job loss
Eng. — The
second
January
witnessed
a
employ-
in
reasonable
seems
their
of
no
productive capacity
automation is liable to
ment. In the instance
necessary to
LONDON,
for
in
total
increases
that, the put
sets
recession
a
cause
a
indicate
to
seems
moment
matter what reason, a previous in-
the United States.
of the output in man-hours, the claims, domestic consumption incost
crease
tion;
that
unemployment, is still valid. But
the experience of the Austin
By PAUL EINZIG
even
Britain,
automation need not give rise to
A Lesson to America
effect lesson for
in
ground
17
& Chestnut St8.
13
The Commercial and Financial Chronicle
(278)
6% yield bracket, benefits
it is in the
that will accrue frorh have had little
following ever
heavy rail car purchase since the price competition
days for quality issues. programs with Westinghouse last summer made high
Wheeling also has the benefit Air Brake given a good bit profits scarce. But some of
of being one of the issues of the attention being paid them have been
perking up
available
well
below
book this group. In addition to rail somewhat,
including Fedders
value and, moreover, is ex¬ signal equipment and brakes,
Quigan after the company re¬
pected to report a jump in the firm also is an important ported that its backlog of
profits of around 50% for maker of highway building units was at the highest level
1955.
equipment
where any
ex¬ in its history. A corollary in¬
panded road building pro¬ terest was stirred in General
National Distillers Waking Up
grams will make themselves Cable by the optimistic fore¬
Among the issues that have felt importantly. The firm casts for
air
conditioning
been dormant for long with also has an electronics divi¬
units and the fact that much
some recent signs of stirring
sion.
1
old
home
and
apartment
is
National
Distillers.
For
New Diversifier
a
YOU
THE MARKET... AND
WALLACE STREETE
By
Not
the tremendous prompted a bit of buying in
buying Ford Motor General Motors which cur¬
this week could lift rently has a price around $20
even
interest in
shares
the
stock
current
market
out
its under that of Ford.
of
doldrums, and the list
generally
lolled
Erratic Metals
in
around
Metals had
what could best be described
as
an
of
consolidation
aimless,
nently
phase.
The combination of
the
huge over-demand for
and
Ford stock and the
erratic time
an
standing
it,
one
day
promi¬
weakness
out
on
rather exclusive level these
age
the next
on
Thursday, January 19, 1956
..
.
above-aver¬
the
house wiring is inadequate for
several years vnow the stiffFresh interest centered on
demand. For a change,
the heavy loads of modern
optimistic
price competition in the liquor Cluett,
Peabody & Co. as a
the coppers and steels swayed
business
has
kept all the result of a new
plans of General Motors to
development appliances. The campaign for
in tune after a long period of
sink another billion dollars
profit figures on the dour side somewhat
foreign to this "adequate" wiring that the
action by the and
into expansion did serve to independent
National, in addition, has
maker
red metal shares. Steels were
of
shirts, ties and, electrical industry will launch
had its share of disappoint¬
stop, at least temporarily, the
highly regarded both for the ments in its
in February could also stir up
rather
persistent downdrift
big position in the lately, men's suits. The de¬
good yields they offer and for chemical
in
General
Cable
by the listed auto shares, dur¬
industry. But Na¬ velopment is a stretchable interest
prospects of continued high tional's diversification is now
ing which American Motors
paper on which the company which has been showing im¬
level business
through this seen at the
sank to a new low.
turning point and owns the
patents, although it proved earnings in
recent
year even in the face of a at least one estimate is that
The Ford Price Tag
was
so
fall-off in the auto business.
foreign to its opera¬ years with last year expected
the chemical lines will con¬
.
It didn't hurt that the indus¬
The Ford shares themselves
tribute as much as $12,000,000
given a rather cautious try also is planning a billion to profit this year. By the
dollar expansion to add
eyeing by the various market
way, at the low point in the
another
15,000,000 tons to
analysts.
The price tag of
company's postwar troubles,
capacity in three years, the
$64.50 was right in line with
1952, when National had to
cleareut implication b e i n g
cut
its
expectations, almost in the
dividend, the total
that the steel makers are con¬
middle of the $60-$70 bracket
earnings were only $19,000,fident of finding plenty
of 000.
discussed ever since the first
prospectus was filed revealing buyers for it.
Washington Beneficiaries
the intimate financial secrets
Wheeling
Steel, particu¬
were
_
of the last of the nation's
a good
share of market students since
huge larly,
It
family-owned enterprises.
was
Considerable attention
favored by
was
tions that the actual trial pro¬
to be
duction had to be turned over
to
West
in
the
are
thought
Cluett has the added
tiveness
tion
of
of
recent
a
to
S.
kindled
the
men's
ion
clothing maker and 'distribu¬
DEALERS
DISTRIBUTORS
UNDERWRITERS
Phillips Petroleum,
ings.
which
around
topside of
a
10-point range in
which it held all of last year.
Air
conditioning shares
has
still
in
*
backers
that
the
article
do
not
•"
in
this
necessarily at
any
views
coincide
time
basic
expressed
with
those
of
the
They are presented
of the author only.J
"Chronicle."
as
those
their
had
hopes
included Cities Service, Pan¬
on
handle
Brokers and Dealers in
same
Eastern
Line,
Pipe
v'
\
...;
Industrial, Municipal, Public Utility and
Pure Oil and Shamrock Oil.
Established 1919
A
R. S. Dickson & Company
prime
another
that
INCORPORATED
chosen to
far has
so
Bank & Insurance Stocks
ig¬
it all is American Seat¬
nore
Members Midwest Stock Exchange
Over-the-Counter Securities
beneficiary
of
Washington proposal
|
';
-
:
■
•
This important maker of
school equipment would ob¬
viously benefit from any
ing.
CHARLOTTE
Atlanta
NEW
Greenville
Direct
Raleigh
*
Wire
YORK
to
all
CHICAGO
Richmond
government attempt to spur
school building with Federal
Funds. The stock has held in
Offices
a
range
of
a mere
for better than
the fact that
a
«.
15 William St., New York
Bell
'
^
System
the.
ether, the nation's schools
must
be
soite
the
increased
vastly de-
heavy construction
STOCK Cr
BOND
i already carried out or under
SPECIAL SITUATIONS
j
Another
way.
company
that
will also benefit is Brunswick--'
BROKERAGE SERVICE
I Balke which has had only a
|
slightly
wider
I American
last
Rails
NEW
YORK
5,
N. Y.
a
little
to
in isolated
Members
Members
and higher payment
due. The market has
3-5770
railway equipment firms
started
to
show
Stock
Exchange
Stock
Exchange
30 Broad St.
New York 4
Telephone DIgby 4-7800
MAIN
the
York
American
Teletype NY 1-733
fully
reflected this inattention. But
have
New
like Nickel Plate where
split
are
Telephone: WHitehall
had
cheer about except
cases
STREET
Hardy & Co.
Split Candidate
have
-
Hettleman & Co.
WALL
for Banks, Brokers and Dealers
all of
year's bull market.
A Rail
ONE
than
range
throughout
the
ST.
&
]■■■
Teletype NY 1-1632
despite
Way or
■
5, N. Y.
eight points
year,
one
G. K. Shields & <
.Mepibefs National. Security Traders Association
Dlgby 4-9755
yet
'
'
[The
with
line
values.
change in the legisla¬
Others
tion.
\
test
Grayson
opin¬
important beneficiaries
of any
Securities
first
centered, would be one
case
of the
Corporate and Municipal
the
that
with
of market
at which the two issues would
interstate deal¬
over
Stores
activity
some
consensus
be
will act to
controls
Department
marketwise to reach the level
tor to put it in the ranks of
being paid to the natural gas
issues on hopes that Congress firms that have been busily
Power
Spin-Off
proposed "spin-off" of
Klein
acquisi¬
lighten the Federal diversifying. The stock only
Commission's price
recently broke out on the
ever.
by Grayson-Robinson Stores
attrac¬
prominent
a
The
field.
packaging
of its best
A Bullish
Virginia Pulp. First
applications
be
one
MEETINGHOUSE
LANE
SOUTHAMPTON, L. I., N. Y.
Number 5460
Volume 183
...
The Commercial and Financial Chronicle
(279)
Long-Term Expansion Needed
Steel Industry
Planning
Wide Expansion
-'
a
Chairman
Executive
of
is
and to
is
capacity within three
years,
money
A
just
survey
completed
by
shows
that
iron
and
steel
com¬
panies plan to add another 15 mil1 i
tons
o n
the
t
to
nation's
Billions
of
must
more
companies
plan
which
ing.
in
three
next
year s,
with
more
to
come.
This increase,
already under
way,
rate
is at the
of
about
make
exact
First
is
metal.
in
steel
com¬
classi¬
every
million tons
a
fication of skill.
and
resents a
year,
rep
Another
variation
each
in
factor
in
costs
faces
company
as
sharp stepping
up of the in¬
pansion
which
the
over
was
mines for itself how to
dustry's
Benjamin F. Fairless
-ex¬
years
Where
it
past
10
million tons annually.
of World War
II,
the steelmaking capacity of the
industry has been expanded by 36
million tons, or 40%, to a total of
128 million tons today. The addi¬
tions
planned would bring the
total to 143 million tons.
panded
the
deter¬
most
$300
per
ex¬
eco¬
cost of more than
ton, compared with $50
where additions
existing
plants,
the cost of expansion will be rela¬
tively lower.
Standards
of Living
new
of
form
need
the
over
to
But
years.
from two sources only: di¬
rectly from the remaining profits
come
of
the steel companies,- and
confidence
the
years,
because
the
earn
ability of the
profits that are
attractive to investors.
of
below
So
for other leading in¬
And
in
companies to
profits
steel companies have been
average
steel's
day,
permis¬
I
as
greatest
it,
see
is
required to
money
problem
to
carry
century,
As
a
result
the
of
all
America
opments,
the midst
the
the
ex¬
pansion that the country expects.
un¬
"
$
capita
per
lii
of
these devel¬
already
is
in
expansion will involve
industrial, and
problems.
Companies
again seek new sources of
open additional new mines
I
Francis I. du Pont & Co.
Members New York Stock Exchange
period of vast in¬
a
dustrial expansion.
a
new
Steel
of
age
and
is
nuclear
energy,
supersonic
the
basic
needed for all this
speed.
growth. This is
the
metals.
price of less than 7 cents a
And the individual steel
It
sells
INVESTMENT
DEALERS
material
because steel is the most versatile
and also the lowest priced of all
for
an
aver¬
:Sf
Principal Security & Commodity Exchanges
Furthermore, science is bringing
in
UNDERWRITERS
•
BROKERS IN
SECURITIES AND
COMMODITIES
One Wall Street/ New York 5# N.Y.
62 Offices from Coast to Coast
companies, competing with each
other, can be counted upon to
keep pace with the requirements
for their products.
Looking
back
over
the
last
25
years, we see that workers in the
The need for this great expan¬
sion is apparent in the rapidly
must
steel
growing population of our coun¬
try, in the rising standards of liv¬
ing and in the generally expand¬
ing economy.
and
The
total
pansion
cost
and
of
the
steel
modernization
ex¬
since
the end of World War II has been
more
*A
news
16,
than
$7 billion.
statement
conference,
by Mr. Fairless at a
New York, City, Jan,
essing
raw
of
proc¬
sources
necessitate
the
Underwriters of
constantly
industry's
CORPORATE
SECURITIES
Wage-Earner Prosperity
struction of new blast furnaces,
steelmaking furnaces, rolling mills
and
other
finishing
equipment.
Every cost that must be incurred
increased great¬
years.
•
•
and
con¬
in expansion has
have
from
great growth.
of
railroads
new
industry
benefited
con¬
This is in addition to
ly in recent
1956.
taconite
New
facilities.
materials
struction
ships.
new
The
day
wages
place
10% of all
try,
of
them
steelworkers
among
workers
in
the
this
Distributors
coun¬
of
and
they enjoy substantial
pensions,
insurance
and
other
benefits. They are safer at work
than at home. Working conditions
are
•
to¬
top
INVESTMENT
•
SECURITIES
•
•
good.
MUTUAL FUNDS
'■v
S-YvV-v'.'■■ './V.-.
•
Barrett Herrick & Co.,Inc.
35
WALL
STREET
NEW YORK
Philadelphia, Pa.
St.
5, N.Y.
Louis, Mo.
.Syracuse, N. Y.
WM Y. FRANKEL & CO.
Springfield, Mass.
Washington, D. C.
Arlington, Va.
Providence, R. I.
Kansas
Rochester, N. Y.
Bethlehem, Pa.
City, Mo.
INCORPORATED
Established 1928
We
39
Broadway, New York 6, N. Y.
Offer
a
COMPREHENSIVE INVESTMENT
AND
DEALER SERVICE
Telephone: WHitehall 3-3960
in
Private Wires to:
Philadelphia, and Salt Lake City
ALL CLASSES OF BONDS AND STOCKS
including
PUBLIC UTILITY—RAILROAD—INDUSTRIAL
TELETYPE NUMBERS:
N Y 1-4040-41
FOREIGN ISSUES
We Are
Particularly Adapted
to Service
With Retail Distribution
Your
N Y 1-2684
Firms
Inquiries Solicited
P. F. FOX & CO.
120
i
SI
DISTRIBUTORS
pound.
great engineering,
construct
to¬
get
of
financial
ores,
from
the savings of investors who have
Below-Average Profits
the
ex¬
Beyond
that,
the
staggering
which must be raised by the
companies to meet the enormous
cost
of
further
expansion
can
have faced before.
the
for
sums
the
growing demands for steel and
the
problem
of financing
new
capacity make the job they have
to do bigger than
anything they
Over
pay
from
—
age
25 years ago.
In other cases,
can
be made to
obligation
recognize
provide our
we
existing
a
day in the
products
of
electronics
ground up at
all
profits to help
pansion.
companies
country with all the steel it will
require about three tons of
steelmaking capacity for every
family of four.
plants are al¬
ready fully developed, additional
capacity must be built from the
The
Called for by Rising
production
their
steel
;
And, in the United States today,
that
secure
The
uses.?
of steel has increased fivefold:
use
nomically.
at the rate of about 3V2
Since the end
is
circumstance
This reduces the amount available
from
industry
knife to skyscraper. Dur¬
ing this
v
5
for
or
in
standard of liv¬
needed
steel
use
the steel
things
more
which
But everyone buys or uses
thousands
This
practically
is
every
kitchen
generally
rising
has special im¬
pact in the steel industry, because
steel mills must buy materials in
hundreds of categories, and need
labor
Steel
our
industries
tax
meet
supply the materials and services
sible depreciation allowances
the
level.
raises
jobs will open
up—in the steel industry itself and
in
the
laws are inadequate
rising construction costs,
steel
companies
are
constantly
being forced to use profits just? to
keep their present plants intact.
to
great expansion,
new
dustries.
estimates
difficult for the current and
price
want
we
grown
der
companies go for¬
their
of
Of course, very few people buy
steel oqtright in the form of hard
ing expansion.
the
only
with
these.
to
Various complex factors affect¬
costs
not
houses, more roads, more
automobiles, more of everything
spend $1.2 billion.
ing
e e
have
—more
dollars
lmaking
capacity with¬
s
76 million in 1900. Now
numbers, but
spent for the new expansion
over the next three years. In 1956
steel
ever
was
We
be
alone,
of
By 1975, it is ex¬
pected to be close to 200 million.
expansion that the country expects.
"v
made
it is 166 million.
of its below-average profits,
for the enormous cost of the further
American Iron and Steel Institute
things
more
steel
States
spend $1.2 billion in 1956 alone. Mr. Fairless declares
get the
to
as¬
popu¬
before. Moreover,
industry must do its
share in helping to maintain our
nation's strength in defense.
,• The
population of the United
the
steel's greatest problem, in view
.
using,
steel than
Advisory Committee,
to
because of the
come
lation and because each American
Industry leader reveals iron and steel companies intend to
15 million tons
to
tonishing rise in America's
U. S. Steel Corporation
add another
continuing large rate of expan¬
will be required for
many
thousands
years
President of American Iron and Steel Institute
steel
ward
sion
By BENJAMIN F. FAIRLESS*
As the
*
There is every expectation that
19
BROADWAY, NEW YORK 5, N. Y.
Telephone
Teletypes
REctor 2-7760
NY 1-944 & NY 1-945
:::!
The Commercial and Financial Chronicle
20
Thursday, January 19, 1956
.
and
Wilson
Mr.
career
News About Banks
BRANCHES
NEW
OFFICERS, ETC.
as
credit investi¬
a
signed to the bank's Domestic Di¬
vision.
17, authorized 590,425 addi¬
capital stock, $10
Jan.
;
tional shares of
par
tion
,
.
...
ft - '
ft
ft
:■
City Bank Farmers Trust
value. Subject to determina¬
by directors of the time and
pany,
Com¬
of New York announces the
appointment of Henry W. Whitney
price, the shareholders will re¬ as a Trust Officer. Mr. Whitney
ceive rights to subscribe to the was formerly an Assistant Trust
additional stock on the basis of Officer associated with the Real
one new share for each eight pres¬
Estate and Mortgage Department.
ent
shares
held.
The
offering,
ft,
itft
which is to be underwritten by a
Irving Trust Company of New
group of investment bankers, will
York, announces the promotion of
increase
the
bank's outstanding
John J. McSorley and Lester F.
capital stock from 4,723,400 to 5,Grieb from Assistant Vice-Presi¬
313.825 shares.
In discussing the
dent to Vice-President.
Mr. Mc¬
financing
H.
Harold
program,
told the share¬
Helm, President,
holders that an accelerated growth
the
1954
bank's
business
the
^inoe
with Corn Exchange
Trust
Company
nad
merger
York
mately $222 million."
«
The
First
East
appointment
The
>'t
John
A.
Assistant Vice-Presi¬
City Bank of New
as an
meeting on Jan. 17, ap¬
dent of
Manufacturers Trust Com¬
announced
pointed Daniel G.
pany
Amend an As-
served
of New York, is
Trust
COMPANY
•'
due
secu¬
22
Undivided
COLONIAL
ft
ft
TRUST
•.y..
COMPANY,
N.
Y.
Dec. 31/54
$74,610,839
$65,313,635
68,522,758
60,851,082
20,264,308
—
16,634,687
—
Cash and
due
Govt,
S.
U.
&
20,016,720
29,959,664
524,883
90,392
in
our
family: J.
spent
Treasurer
ft
and
ft
THE
Total
resources
NEW
TRUST
$
&
#
:'••••
\
•
.
?'
...
regular quarterly divi¬
share and an
a
dend of 25 cents per
extra
on
of
dividend
share
cents
25
payable Jan.
record
of
shareholders
to
at
At the
the
5,
Jan.
of
page
75.
meeting of
stockholders'
Broad
Company
Trust
Street
Philadelphia
Jan.
on
Richard Nusbaum
Govt,
banking
11,
Blue Moon
a
creates
revolutionary idea.
a
pige9n-hqie parking, inc.
recent dividend payer with better
holders.
'
Stock
sells
about
things in store for stock¬
Information
$4.75.
L. D. SHERMAN
Members
New
York Security
& CO.
Dealers Association
30 Pine Street, New York
503,740
WHitehall 4-5540
1,87.9,433
'r
5/N. Y.
£>/■■-
431,315
'i
secu-
profits..
J. ML LEDERER CO., 1HC.
L.
431,321
271,410
ft
request.
on
486,523
SHERMAN
D.
CO.—30
&
Pine
Street, New York 5, N. Y.
C-19
Gentlemen:
ft
*
Please
send
information
me
on
Pigeon-Hole
Parking.
George O. Nodyne, President of
40
HAnover 2-5440 *
Exchange Place
New York 5, N.Y.
River
East
York,
election
Name
Savings Bank of New
announced
Jan.
on
the
12
meyer,
Board
of
meyer
is
and
devices
the
for
of mechanical
'
COMPANY,
the
of
improve¬
equipment.
BANK
Tel
City
Specialists in Successful Stockholder Relations
sis
it
CONNECTICUT
s.weineerg&co.
<.
i_w—
Ter¬
inventor
an
it
THE
:
—
i.i
Have-
of
District
Eastern
RR.
various
Mr.
Trustees.
Vice-President
Brooklyn
ment
_.
—:
of
Henry Osborne HaveJr., as a member of the
minal
1
AddreSS
AND
TRUST
There is tremendous
CONN.
HARTFORD,
business-building
power
in
a
well directed
"
V
Dec.
31,'55
Dec. 31/54
program
of Stockholder Relations—especially if it is
prop¬
$
Members N.Y. Security Dealers Ass'n
Total
$
381,706,192
348,591,067
erly geared to attract reader attention—and capable of earning
347,981,301
321,643,600
for
98,443,154
92,707,884
holdings—
76.277.663
81.142.918
discounts
152,051,214
profits—
3,560,797
128,496,233 j
3,427,141
resources
Deposits
We render
Cash
a
brokerage serv¬
and
due
S.
U.
ice in all Unlisted Securities
■
rity
Loans
for Banks and Dealers
Govt,
&
Undivided
60 Wall
Dec.
Total
c
-
and" due
31,'55
Dec. 31/54
$71,974,280
S.
U.
SECURITIES
rity
Loans
simplicity with which
the investment opinion-makers
you
would like to
see
how
helped by organization, write
10,154,818
18,057,318
we
the
across
well
recog¬
each client's
present
country.
your company can
or
be beneficially
call for appointment.
20,178,155
24,848,080
22,516,663
1,172,217
996,741
de
secu¬
holdings
discounts
&
nized—as is the
66,190,179
12,578,688
Govt,
relations with stockholders
from
banks
INACTIVE
corporate
and with members of the financial community are
If
$72,356,452
—
Deposits
Cash
"name status" in the Security Community.
a
handling
TRENTON,
66,519,529
resources
]
story to
COMPANY,
NEW JERSEY
Street, New York 5
NY 1-2762
ft
ft
TRUST
Phone: WHitehall 3-7830
Teletype No
Our methods of
secu-
ft
TRENTON
'corporation
from
banks
witfts&nklin
"
Our
numerous
contacts and excellent facilities
Undivided
profits
ft
enable
us
to
secure
top bids
closely held securities. For
may
we
on
Arthur
our
respectfully solicit
ft
ft
inactive and
mutual benefit
your
inquiry.
of
the
of
New
has
J.
Martel
Executive
elected
North
York
been
Side
and
elected
has
been
Vice-President
Savings
Donald
Bank
Darcy
Vice-President
Stockholder
lOO
Broadway,
and
Financial
New York 5,
N.Y. •
Relations
WOrtH
S.
elected a
was
director.
from
holdings
Undivided
3,
the
1955.
close of business Dec. 22,
referred to
was
Once in
Oct. 5, *55
721,772
due
per
stock of $5
capital
both
value,
par
N. Y.
the
$3,459,671
1,954,720
and
■
of Camden, N. J., have
Company
declared
I
Camden Trust
directors of
The
it is announced, has
YORK
banks
S.
Co.
'
-V
COMPANY,
'$3,518,140
___
Deposits
rity
on
the
by
of the Washburn
'•
Citizens
someone
a
'•1
■'
■
Dec. 31,'55
U.
vacancy
caused
Executive
26 of his 30-year
F.
Edward
it
'
CORPORATION
Cash
the bank's board
death of the late
Reginald Washburn, former head
the
Richard
Assistant Secretaries.
selective market.
of
issue
Finnegan,
Assistant
Vice-Presi¬
dent, formerly Assistant
Secre¬
tary; Richard C. Bellinger, Assist¬
ant Treasurer, formerly Assistant
Auditor; Charles A. McMahon, As¬
Breslin, Jr. and Charles A. Postler,
a
succeeds
Tomajan
Mr.
tions.
on
organiza¬
to
educational
and
ness
capacity
of various civic, busi¬
a
official
the
York office
Mr. Adamson,
meeting on Jan. 10, the
directors approved the following
promotions and new appointments
in
of Boston and
similar
a
boards
the
charge
bank's recently opened
New
Trust
and
in
serves
Office, it was announced
on Jan.
13, by Mills B. Lane, Jr./
President.
The
opening of the
ft
Bank
Industrial Mu¬
tual
Service
Shanahan, President
Federation
Director | of the
Insurance- Co.
a
Southern National Bank in At¬
the
25,684,353
profits-
Clifford fol¬
lowing the annual meeting of the
stockholders. Mr, Tomajan is also
lanta, Ga., was appointed to direct
18,152,095
discounts
<fc
Undivided
of Wor¬
announced by
was
President Edward L.
'/
Adamson,
Mass.,
cester,
Worcester
the
Company
Trust
County
was
ft
of directors of the
board
secu¬
holdings—_
rity
Loans
*
'
S. Toma-
Vice-President and member of the!
irom
banks
F.
Robert
Dec. 31/55
resources
*
of
Director
a
of their New York operations.
ft
.
Hibberd
Mr.
in their home office and in
41,673,039
1,739,23 i
proiits__
.
Trust
JO 9""y
1*3
52,873,356
discounts
&
sistant
exacting requirements of
been
Vice-Presi¬
York,
*
of John
President of The Washburn Co., as
has
Division, of the Mercantile
Company of St. Louis, both
Bond
the
Chairman of the Beard and
jan,
Assistant Vice-President, in the
an
ho!din"S__.i
Loans
16,435,225
from
Govt,
S.
rity
New
in
'I'll
*
election
The
with C. J. Devine & Co.
sociated
71,431,204
22,044,060
and
banks
U.
TRUST
90,581,972
-Hi
Deposits
that at
meet the
■'
Securities Department
of the bank. He joined The Marine
Trust Company in January of this
year.
With the exception of the
past three years, when he was as¬
YORK
of
operations
and
agement
Savings Man¬
on
American Bankers Association.
Municipal
-4> D_'C. 31,'55 Dec. 31,'54
$100,227,457 $78,984,062
Total resources
Cash
NEW
OF
Committee
the
the New York Office of the
with
Company of New York, announced
analysis designed to
Hibberd,
member of
House Association, and
.//;:.,y. v/
ft
was
Pension Consultant in the Manu¬
a
of
Research and
W.
William
in 1952, Mr.
ft
Market
Comptrollers, former Secretary
and
member
of
the
Operating
Committee of the Atlanta Clearing
the
affiliated with the elected an Assistant
Borden Company for 21 years in dent of The Marine Trust Com¬
the
development of retirement pany of Western New York, ac¬
procedures and the administration cording to an announcement made
of employee pension and welfare by Charles H. Diefendorf, Presi¬
Mr. Hibberd is associated
plans. At present, Mr. Stengel is dent.
Stengel
Thomas J.
GROWTH SECURITIES
//, ft-
Prior to joining
Company.
Manufacturers Trust
'
In the Over-lhe-Counter
of
Vice-President of Bronx
as
ft
Deposits
of
Vice-President
1st
Flanigan has also an¬
nounced
the
appointment
of County Trust Company, Assistant
Vice-President of Chase Manhat¬
Howard R. Stengel as an Assistant
tan Bank, etc.
Trust
Officer
of
Manufacturers
Total
ft-
lanta
joining North Side Savings Bank,
President
a
City.
*
*
and
Wilson
National
a.
comprising
Central
it-
of Directors of The
Board
York, at
district
is
He
1954,
Association of Bank Auditors and
Savings Banks Auditors and
Comptrollers Forum of the State
of New York.
Mr. Darcy before
who has been with the
Irving since 1931, is associated ment, 45 Beaver Street.
with the bank's domestic banking
division
and
will head up the COMMERCIAL STATE BANK AND
Sorley
North
pany
facturer's Personal Trust Depart¬
number of
Central
States. Mr. Grieb, who joined the
Irving organization in 1955 is also
associated with this district in the
domestic banking division. Sidney
tal funds. According to Mr. Helm
W. Coe, Vice-President, formerly
"capital funds amounted to $197
in charge of the district covering
million at the year-end. The pro¬
these
states will take over
the
posed capital increase should im¬
district servicing accounts in New
mediately raise them to approxi¬
Bank
prompted the raising of additional
capital. This financing, he said, is
expected to add more than $25
million to Chemical Bank's capi¬
At pres¬
ent, Mr. Wilson is assigned to the
Brooklyn Division of the bank's
Branch
Administration
Depart¬
ment located in the Flatbush Of¬
fice, Brooklyn.
Shareholders of Chemical Corn •istant Cashier. Mr. Amend is as¬
Exchange Bank, of New York, at
their
132nd
annual meeting on
with
is
son
Manufacturers Trust Com¬
and Dollar Savings Bank.
pany,
he was serving as
officer. Mr. Adampast President of the At¬
conference of the National
in
dent
senior lending
New York Title & Mortgage Com¬
appointed
ager, and in 1945 was
an
Assistant Secretary.
associated
been
and
lending.
Before his
election to Executive Vice-Presi¬
commercial
joined North Side Sav¬
ings
Bank
in
March,
1946 as
Auditor, and was elected a VicePresident in July, ,1952.
He had
previously
operations,
development
savings
the
with
Atlanta
in
& S in the fields of
trust,
.
Mr. Martel
Capital
United
the
through the positions of Assistant
Branch
Manager, Branch
Man¬
CAPITALIZATIONS
,
1926
merged with Manufacturers Trust
in
1928.
Mr.
Wilson
advanced
Bankers
and
REVISED
with
National Bank & Trust Co., which
CONSOLIDATIONS
NEW
in
gator
C
Secretary to the Board, it was
by
C.
William
Borchers, the bank's President.
banking
his
began
experience
announced
by Horace C. Flanigan, President.
of
.
.
(280)
4-6056
Volume 183
Number 5460
...
The Commercial and Financial
Chronicle
(281)
Motor Vehicle Production
r,v /Auto Output; •i • product-.to another new high this
By utilizing its facilities to the7-year.
However, present indica-
r,
extent
possible,
r
And th(6 Business Outlook •market") leadership;:in rl955.
?
By HARLOW H. CURTICE*
in
.
our
President of General Motors
34%
tl'. i
above
In opening the
Motorama, Mr. Curtice expressed these expec-*
tations for 1956: (1) an
industry production of 7,500,000 mo¬
tor
vehicles; (2) General Motors to invest another $1 billion;
(3) corporation's physical sales to approach 1955 level of $12
billion; and (4) another record year of prosperity with a $400
billion Gross National Product.
Looking ahead
to
Diesel
that
1965, Mr.
fncvl7
siyiing ana engineer- spending by
spenaing Dy
ing advances that form
the
foundation
ivfdnnr.
portance
for
t
to
General
?
is
n
It
it.
lifting the curtain
forward
Motors'
8
our
ereere
v? General Motors studios
laboratories.
and
V:
195^
;
.
.
From the business and economic
and
in
most
a
out-
the
most
which
ancj
the
The
bad
as
It
Harlow
H.
Curtice
it.
most
actual
ago
optimistic forefell far short of
results.
On
March
4
of
average
employed,
spending rose even more substantially. The cost of living,remained
Such
construction
industry
bet-
its
amazing 1954 record,
capital
expenditures
by
business not only showed an inwhile
1954 but
rose
steadily
year.
car
sales
through^ October. I
remarkably stable.
throughout the
new
fore
of
had
industry.
contrary
ence
in
occurred
to
all
It
previous
rail
able
field
of Allison
with
construction
to
That
lpadprshin
public
tran^
non
including
tures'
puone con
commercial
'
f
will
Rpn'nrtc
p
industrial
buildings
snhnnic nnH
.
indioatp
that
highway
•
Continued
on page
RIEGEL PAPER CORP., CAP. STOCK
RIEGELTEXTILE
.
.
CORP., PFD.& COM.
Inquiries Invited
Ingalls & Snyder
Members
.
.^sport requirements,
100
Tnrrpased
The
year
New
Members
'
.
American
York
Stock Exchange
Stock
BROADWAY
7-6800
Bell
System
Shareholder*!
just
concluded
Exchange
NEW YORK
—
Teletype
NY
5, N. Y.
1-1459
also
marked the end of our historic
five-year labor agreements and
be-
the siSnirS of new three-year con|-racts with the unions representin£. mos^
our eniployees.
A
savings-stock purchase program
history
enable them to
of
and
DISTRIBUTORS
of
was made available to all salaried
emPl0,yees in the United States to
mobile demand and accounted for
area
UNDERWRITERS
CORPORATE SECURITIES
increase their par-
1955
averaged twice 500,000 additional units.
nrogress" m Gene
Motors
JXn1,/,Til!"," 1 'h ^
T° ^UPP'y- 'X ^.traordinary p Earl -in the
General Mofn .11iFohVnlatJ?acl}ed demand required continuous pro- tors shareholders were given the
"al^f„en This
duct,Ion(.at vejy fhlh 1955 nt\
$387 billion. hl?L0fJ" 7% above up to the end of the 'e0v®ls model opportunity to subscribe to addi-
RIGHTS
.
Homer O'Connell & Co.
was
tional
the 1954 total.
In my
opinion, the most impor-
tant factor responsible for the economic results of 1955 was the ex-
tremely
Production of the
year.
high
degree
of
public
lines
the
states
output
and
in
Canada
the
of
rM
address
MM.
Il!
by
f
Mr
iqco
Curtice
at
Curtice at
the
the
cars
16,
1956.
Spiit
was
three for
unprecedented
9,643,000
&
lly to
in
new
1955
Corporate and
more
in
occurred
preceding 13
the
Over
years.
Municipal Securities
ment of the Presidents of
colleges
it
is
and
in
'
operation
il958,
to
,
Senatorial
not
instances,
tions that
(r
point.
LEE HIGGINSON
CORPORATION
BOSTON
Banking Service Since 1848
am
In
economies
afford
other
and
advantages
to
underwriters, distributors, corporations
and their stockholders.
Write
and
for
State
our
free booklet setting forth the Current Federal
Slock
Original Issue
and Transfer
Tax Rates.
made presenta¬
factual and to the
satisfied that the
rec¬
ord speaks for itself.
CHICAGO
Outlook
MEMBERS
American Stock
we
were
We
REGISTRAR and TRANSFER COMPANY
^
New York, Boston and Midwest Stock
Investment
I
subcommittees
unmentioned.
go
NEW YORK, N. Y. and JERSEY CITY, N. J.
financial
higher 'education will
amount to $5 million annually.
In reviewing the year 1955, bur
two appearances
in Washington
•
in
When
in
total
before
NEW YORK
AS TRANSFER AGENT
leading
universities.
full
Motors'
support
Trading Department...
both
'
Half Century of Efficient and Economical Service
'
should
M
a
announced just a year ago. It has
received the enthusiastic endorse¬
Syndicate Department...
■A
NY 1-1896
.
Dealers
our:
Bell System Teletype
The addishareholders
represented
than had
General
through
Telephone
An expanded program of finan¬
cial aid to higher education was
in
BROADWAY, NEW YORK 5, N. Y.
DIgby 4-0770
an
the
X,400 • students will be receiving
four-year scholarships sponsored
by General Motors. At that time
Unlisted
120
record 565,000.
a
during
UNDERWRITERS
^
r
one.
increase
our tion o£ 77>00o
entire
Service to
INCORPORATED
new
^eneral Motors sharehoWer jfam-
and trucks—the largest unit
growth
and DEALERS
stock
common
These two actions resulted in
great industry.
DISTRIBUTORS
of
caoitaf" fn°Seolember "our'stoVk
United
B"„"rcx3 NewYo^"at°: A", production ever achieved by
shares
rCpresenting $325 million of
undertaken at a correspondingly high level. The result
'
*An
1956
was
was
new
Exchange (Associate)
for
1956
Looking forward, it is
Exchanges
ion
that
1956
will
50 CHURCH STREET
be
my
ooin-
further
is
rise
every
in the
prospect
gross
N. Y.
Established
15 EXCHANGE PLACE
isso
Jersey City 2, N. J.
another
''record year for business generally.
There
New York 7,
of
a
national
BEekman 3-2170
as
built
hp
We Have An Interest In
American and
Extern.
.
' :A
consider this a most important
milestone for General Motors and
progress of aviation. The
Allison prop-jet is the only engine
and
well
as
mihlip imnrnvp-
nth^r
en-
including
iicis
has
con-
fidence not only in this nation but
throughout the free world. The
Electra,
has
now
been
by several leading air-
has
aiiuusuv
recor(js jn each of the last
^ ""prranrt
tare® years> and ^hls aP^ar°
the
prop-jet
industry
cuiiaiiuciiuii
new
some-
exceed
nroduced^widespread
P.r°aucea widespread
COrtlandt
experi-
purchases in the
aircraft
trU
with seasonal trends in auto-
consumer
hiehwav
now
con-
outstanding ±Tts Xum"6
i S
Eisenhower AdX ' More non-resiaentiai strucresidentiafstr'X
umts- More
of the
ministration
with full jets handling the balance.
directly
ran
of
July
never
the
en-
}n
Jear! P^op:iei planes wl11 be
handling 75 to 80% of our coun-
*
phenomenon
a
our
from
We have long
The
gej.
the
to
airlines need for faster, smoother,
efficient short and medium
tB&ht service. It is my belief that
I
However, this proved to
conservative, partly due to the
fact that I did not anticipate-and
ro
one
could have anticipated—
the extraordinary and unprecedented "bulge" in demand which
caused a
steady, contra-seasonal
in
j
i
°? }^1S type available to meet the
evident.
rise
^
^ei? demonstrated
.,
was
year
u
,s
jlne
^
industry is
due
operate
of leadership
I e rs 01 ni§away, rail
marine transportation. We
J*nes»
be
disposable income was
high level, and consumer
in
a
modes
in which
ordered
'
as
year
_
A
px-
Pe*?dent on war or a peak level of
defense expenditures. However,
l* aPPears Wite certain that deuS± ^Pfnd1^ures will be somewhat higher in 1956.
Other Government expenditures
Federal, State and local- -can
A fundamental
factor, of course,
-is the favorable economic climate
designed specifically for commerclal usage. This plane, the Lock¬
revised upward my January forein line with the trends then
Consumer
Gains
Confidence
u
.
fines to power the newest airplane
that
was
all
in
fields
selection
confidence pre-
consumntion
clusively that the prosperity and
ProSress of the nation are not de-
outstand-
outstanding
an
.......
.
mercial
most
nffprpH
appraise—particularly
T4.
.
the factors that should
are
nersonal
level
for the industry.
1956
a^fd'
With
'not* only"for"the'"automobile^ in- also be expected to increase
suPp*iers of ^oods and ^ustry but for the entire economy? wll^ from Present levels,
position of leadership in
a
What
for
inromp
creale^foonT'toe^rarrent^high
current high
the
most
year
and'disoosable
rise
vailine^
fifty-six
even
inpnmp
££ Tnew hi7h leve Twl
b
i
h^sed s«ll further throneh
VSZS&JZ:™m
industry—far better than
;
nprs;nnal
reach
v
will be another big year in the automobile
ing
result
lowcr taxes.
excess
of $400 billion.
Nineteen
"
.
a
wm
-
r°
ari lmP?r.tan^ Pr.°~ importance of public confidence
ducer of engines for military air- cannot be over-emphasized.
craft. In 1955 we entered the comThere is every indication that
cast
year
over
Another
in
.
As
*]ave
confidence is very diffi-
the
casts
employment, with an
66
million
gainfully
crease
Role of
•
the
of
virtually full
;
the
pvpr
tional product for 1956
^as make
year
^
^
Prop-jet Engines
older
,
and
industry
with
nrnrhirts
customers!
Even
shortages and
substantial
tered
1
spending habits of peodramatically demonstrated in our industry last year.
material
The
i°yed
a
reason was
entire
rjL h'?,h re~
Nineteen fifty-five marked the
.
affects the
evidenced
new
the
forward
come
outstanding
pie. This
yond its rated
a
that
Public
nation
at
fact
dollars
rounding out of General Motors
year,
demonstrating
agajn its amazing vitality
dynamic impact on national
cult to
produced be¬
a
trend
industry had
and
prosperous
transportation.
once
ex-
TT,
aatomoDne inaustry nad a j'
phenomenal
i
country.'
was
servlces*
heed
our
overtime.
upward
units
,?
very
also
also
began in September, 1954,
! The
automobile
standing, in.
the history of
by
,,'5?
-
a
This
people had money and the confidence to spend it.
-
out¬
capacity,
The
sales
n 1955. lt
in l955. Jt would seem reasonable
to expect an increase of about 4%,
which would mean a gross na-
very
in
^jnued at a rapid rate through- participation
out 1955.
to
my
opinion
was
,
also
consumers and
consumers and
business.
sales
w„
prevailed.
economic growth. One
Rpviewed
viewpoint, 1955
standing year,
by
of the
developments ueing
ueveioprneriis being
xuiwcuu
of
way
some
on
solid
Bollar
engines.
record
reflected in the high level of
was
higher level of
experienced
optimistic were able to fore$12 billion, with earnings; cast for 1955.
However I do not
establishing an allrtime record.
foresee any contra-seasonal bulge
Dealers handling General Moin demand similar to that which
tors products shared
importantly we experienced in the last half of
in the
year's prosperity.
Their 1955. But, by any
yardstick, 1956
profits were in keeping with the should be another
to 80% of the country's air transportation
by
prop-jet planes with the balance by jets. Makes a
strong plea
for highway improvement and more
engineers and scientists.
confidence
This
*
ceeded
handling of 75%
Motorama provides a dramatic setting for the
public to
preview the styling and engineer-
1954.
activity was reflected in all product lines, including household
appliances, -Diesel t locomotives and
Curtice anticipates: $550 billion Gross National
Product; $400
billion Disposable Income; 190 million
population, and the
The
,
cars
employment will continue in
1956.
that the rate of increase
are
will be less than that
its :
unit
; Unit
and trucks produced
uced
United States and Canadian
dian
sales of
tions
General
Motors was able to .maintain
f
full
.
fullest
21
HEnderson 4-8525
127
The Commercial and Financial Chronicle
22
that
ensure
Canada's Continued Growth
Seen in Economic
By JAMES
Chairman
nomic
Unity
and President,
diversity
growth
an
proportions
Mr. Muir notes the highest bank rate
source.
use
the
as
ago,
year
a
that
"Year
is, in
make
a
of
I referred to
1955
Decision"—a
year,
which it is necessary
variety of policy deci¬
which
sions
decisions
maintain¬
and
ing, Canada's economic unity.
especially
with
importance for
are
future
our
country.
I
cuss
to
dis¬
made during
the year and
to
evaluate,
I
Last
Decision"
of
I
year
certain
said:
"Within
policy
our
and
ment
should
overall
an
decisions
business
take
due
interdependent
as
nomic
climate
economic
and
policy
in
goals of
directed
of
freedom,
govern¬
during
account
1955
of
four
an
eco¬
their probable
effect; second,
James
some
us
in
munity.
Muir
can,
to
confronting
first
of
these
is
to
point Out
of the problems
The
*An
1956 and to suggest ways of
by Mr. Muir at the 87th
Meeting of Shareholders of the
Royal Bank of Canada, Montreal, Quebec,
Jan.
12, 1956.
meeting them; and finally, third,
we perhaps reached a turn¬
ing point where natural economic
forces
cine
hence
of
Apparently
tive
from
com¬
and
It
was
mount
entirely
cured
para¬
of Finance
Ministers
of
Bank
its
recently
McLeod,Youhg,Weir & Company
LIMITED
added
standard
central-bank
to
stock
and
Bank
both
were
of
Act.
Canada
ratio
further
expected to result
deficit for the fiscal
that
the
the
old
the
and
personal incomes, did not become
effective until July
1, 1955, by
which time inflationary forces in
Canada were already strong.
>
'
upswing was
Nevertheless, the
undoubtedly abetted by our own
monetary and fiscal policy. It is
possible indeed that easy money,
which induced ready lending by
banks, had ceased to be beneficial
had begun to have inflation¬
and
ary
ond
effects by the end of the sec¬
quarter of the year. Again, I
must underline what I said at the
"how much?"
in
year
In
anything,
great
too
for
the excitement
all
switch
from
1V2
was
in¬
new
Not
since
opened
the
the
extremely
for
bank
of
business
rate
been
in
policy went al¬
the general
public.
This decision is all the
more important because, unless or
until reversed, it will presumably
determihe the over-all pattern of
Federal budgeting
for years to
1935
provided
■,
bv
come. -
In his budget speech of April 5,
1955, the Minister of Finance said:
"I propose to recommend to the
House
a
tax
policy and a tax
that
would
produce
budget under conditions
represent a high level of
which
Now
has
high level of output and
a
employment
so
figure
that
value
of
is
reflected
measures
our
over
the year.
and
tax
national
The
structure
new
the
OTTAWA
VANCOUVER
CALGARY
WINNIPEG
NEW
LONDON
QUEBEC
HAMILTON
*
SHERBROOKE
'
-■>
YORK
>7$
#
BONDS
' /
STOCKS
<
CANADIAN
--/W/
.•
-
.
-
W ood,
14
,/v
Gundy & Co., Inc.
Wall
Strpet, New York 5
105 West Adams
Markets
maintained in all classes of Canadian external
Street, Chicago 3
and iniernal bond issues.
Siock orders executed
,
V-
ihe Montreal and Toronto Stock
on
affiliated with
Exchanges,
or
net New York markets quoted
on
request.
Wood, Gundy & Company
DIRECT
Limited
PRIVATE
WINNIPEG,
Established 1905
,
WIRES
CALGARY,
BELL
SYSTEM
TO
TORONTO,
VANCOUVER,
TELETYPE
MONTREAL,
AND
NY
VICTORIA
1-702-3
and
Wood, Gundy & Company
(Members of
The Toronto Stock
Exchange
Canadian Stock
toronto
quebec
Halifax
montreal
saint
john
kitchener
winnipeg
ottawa
regina
Associate Member American Stock
Boston
Montreal Stock Exchange
Exchange
40
EXCHANGE
london, eng.
hamilton
london, ont.
calgary
victoria
Calgary
Ottawa
PLACE, NEW
Exchange
YORK
5
Telephone WHitehall 4-8161
London, Eng.
vancouver
Edmonton
'
Philadelphia
Canadian
Affiliate
and
—
Canadian
Member
Toronto, Montreal
Stock Exchanges
the
gross
tax policy
referred
|
KITCHENER
in
production
King Street West, Toronto, Canada
MONTREAL
V
output and employment."
Exchanges
Office
a
balanced
Canada
high, and
the three changes of rate in as
many months is unprecedented as
well. This, of course, was a signal
for
a
complete reversal of the
the
financing, one
important decision in
unnoticed
most
to
Bank
over
deficit
to
the realm of fiscal
2%, in Sep¬
tember from 2 to 2%%, and again
in November from 2*A to 2%%.
presumably capable of
environment
or
second, that the most sig¬
nificant
tax
reduction, that on
momentum
August the bank rate
creased
More¬
market.
50
that
were
if
In
by
London, Kitchener, Winnipeg, Calgary, Vancouver,
and The First Boston Corporation, New York
all
view
was,
by the recently organized money
on
cash-reserve
comfort.
greater efficiency because of the
favourable
Head
bound to affect Canada sooner
statutory 8% average.
indications
of
Direct private wires to Montreal, Ottawa,
Hamilton,
Stock orders executed
bank
her
ment were on the upswing, and
indeed, by late spring, there were
im¬
devices supplied
new
tools
DEALERS IN ALL
1955, when the U. K. raised
rate, and presumably
these
inflationary
forces
were
uary
structure
portant
over,
CANADIAN SECURITIES
bank
It .soon became evident
that
business
activity
and
employ¬
the 1954 revision of the .Bank Act
Members of The Investment Dealers' Association of Canada
low
a
1955/56.
had
tools
the
new
small
a
and
which
Canada
deflation¬
"what?" but the ''when?" and the
in
come,
Treasury Departments throughout
the Western World; and we had
the
judge the ef¬
new
policy; but, looking back over
the year it would seem that the
early part at least provided a
demonstration of the efficacy of
monetary
and fiscal
policy
in
combating deflation and unem¬
ployment. However, we must re¬
member, first, that inflation was
already considered
a
threat in
other countries as early as Jan¬
ary
beginning: in maintaining stabil¬
of
positive
action was needed apparently still
prevailed when the budget was
brought down on April 5th. Tax
reductions, notably on personal in¬
danger
to
the
ity at a high level of employment,
through monetary and fiscal pol¬
icy, the important thing is not the
The
of the moment is
the
galloping
deflation
of
the
early 1930's." To meet this chal¬
lenge we had the greatly im¬
proved fiscal devices now avail¬
able
of
rate.
effect
to the
still
and
the
that
assume
to
soon
drop
as I pointed out last year,
"it is still unsafe to pronounce in¬
to
stand¬
or
at
from the former conventional 10%
when,
so
their rates
Moreover,
too
traditional sources, available bank
cash had been increased by the
time
a
to
is
It
fectiveness
In addition to increased cash from
high and stable level ofemployment.
The year began
with an over¬
hang of unemployment and slack
less
2%
direct
a
1954.
Accord¬
rate was reduced
1 Vz% in February
V/2% our
bank rate was the lowest charged
by any central bank. This was an
indication of an easy-money policy
that went far beyond the modest
1955
from
needed.
was
either raising
business activity and
trade
and
1955, at a time when other central
banks throughout the world were
presented our
monetary and fiscal authorities
with a real test of their power to
ensure
action
command.
ingly the bank
Employment
year
monetary
our
year,
later;
point had not come by
early 1955 and that further posi¬
ing pat.
Activity
without
turning
munity.
Business
give in order to
upsetting
we
health
fiscal authorities decided that the
.
economic
Canadian
the
should
restore
most im¬
the
upon
a
the balance of nature?"
major deci¬
made. I should
discuss the
effect
to
not, how big a dose of
essentially preventive medi¬
our
some
been
to
sufficient
are
If
cure?
portant of these especially as they
bear on the pursuit or achieve¬
ment of the four goals of policy
flation
address
Annua]
Have
an
.
dose of expan¬
a
the
of
sionist medicine be administered?
rate
have
now
The
political
with
consistent
are
then
welfare
Decisions
suggested
towards
the economic welfare of the com¬
as
like
by which
right policy
might be judged. At that time I
of
some
sions
criteria
the policy desions actually
well
"Year
of
propose
first
Since
and
charged
the
"When should
of
,
single out for special attention
problem of paramount im¬
achieving,
to
of
economic
progress and growth in the econ¬
omy as a whole."
portance for the future: the prob¬
of
is
product and income
with the highest
appropriate
one
lem
goal
distribution
policy of the first half
and the squeeze on
credit continues, with the Bank
of Canada using all the tools and
techniques that a central bank can
easy-money
appropriate to repeat the basic
questions I asked then. They are:
the
possible incentive to increase the
total
amount
of
product to be
shared. The fourth and final goal
is to ensure that all our policy
reserves,
to
third
the
national
in
consumers
combines equity
control of non-bank
credit, and questions dependability of automatic principle in
fiscal policy. U. S. criticized for disguised lend-lease of soft
current acceptance for agricultural surpluses. Expects increased
imports from U. K. at expense of other imports.
A
which
The
that
ensure
of "moral suasion" instead of mechanical devices.
Requests increased secondary
Nevertheless, none of these im¬
provements in monetary and fis¬
resources
involuntary
market
to
in
them.
want
lowering
dollar par value. Varieties of credit overexpansion expected
to diminish shortly due to reliance on wise central banking
and its
services
and
eco¬
1935, and that inflation aided exporters by
since
in
idleness; that is, we should try to cal policy devices is a guarantee
maintain a high and stable level of stability. We know what de¬
of business activity and employ¬ vices to use to induce expansion
ment. The second goal is to en¬ or contraction but we do not al¬
sure
that
our
resources,
when ways know when or how much to
fully employed, are allocated in use them in order to achieve our
such
a
way
as
to produce the purpose without going too far in
maximum volume of goods and the other direction. In the light of
services and to bring these goods events since early 1955, it may be
MUIR*
Prominent Canadian Banker finds unity in
human
our
wasted
not
are
Royal Bank of Canada
to
Thursday, January 19, 1956
.
.
.
(232)
T oronto
Montreal
Winnipeg
Vancouver
Halifax
to
by
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(283)
the Minister of Finance is geared
to this gross national product in
policy
such
that if in any year the
product falls below a certain ideal
meet the crises
level, there will be
budget
deficit.1 If
principle
a
way
product
there
rises
will
automatic
an
the
above
be
national
this
level,
automatic
an
sur¬
plus.
And the ideal level of gross
national product is
apparently de¬
fined
the level that would have
as
obtained had employment and the
rate
of growth of the
economy
been "normal"
every
the base year 1953.
For example, in
since
year
estimating what
the $24.4 billion product achieved
in
1953,;"a good year," added what
he considered
growth
"ideal"
warranted rate of
a
for
1954,
making
product for that
billion
instead
the
of
to
least
too
prove
be
the
that
It
has
make
things
in
the
short
the Bank of Canada
ing,
past
applied
controls
designed
the
with
least
required to
Mean¬
curb
essential
be
one.
$25
ceiving
The
is
theory
trial
a
a
already
goods
requirement; that is, the require¬
re¬
ment
by the Bank of Canada that
billion
it is to be hoped that experts and
a
actually achieved, and ended with
laymen alike will give it both the
serious consideration and the full
ury
discussion that its importance de¬
sufficient, with existing statutory
serves.
cash
ideal
an
estimated
figure of $26
billion for 1955 instead of the es¬
timated
actual
product
billion. Tax rates
so
to
as
were
of
$25%
then levied
balance the budget
be'ieve
I
should
we
also
second line of reserves in Treas¬
Bills and day-to-day loans be
established by the chartered banks
first
con¬
and
a'
$26 billion gross national product;
and, since the estimated actual
product was onlv $25!/4 billion,
w
sider the effectiveness and desira¬
bility of
Again,
this meant
wards
deficit which
a
on
was
a
in
of
whether this kind of built-in sta¬
wards
will
sufficiently
prove
policy
is
to¬
In
fect.
the
desirability
pluses
or
consider
planned
deficits
automatic
caused
of
to
in
surpluses
deficits
by swings in the
commu¬
ideal
some
words,
of
excess
or
nity's money income above
low,
sur¬
what
level.* In
might
we
other
call
the
opposed to the
as
This would
the more
more me¬
appear
remarkable
by the Bank
1954 and
of
for
im¬
an
been
made.
merely
as one who would
the widest interest and
see
fullest
and
freest
discussion
of paramount
are
in
Other
maneuver
supports combined with dumping
abroad at low prices. Meanwhile
policies
our
possibilities
and
for
economic
run are
progress over the long
being studied by the Royal
Commission
on
Canada's Economic
Prospects.
Altogether, 1955
proved in retrospect what it
in
prospect:
a
has
was
of decision.
year
I
shall
consider
now
of
greater
or
few
a
of
cf
believe
I
one
new money mar-
pointed
the
out,
unselective, curbing healthy as ;
as
unhealthy or excessive,
Short-term commer- j
bank credit.
goods into the
move
symptom rather than
inflation, and drastic
are a
a
during
lyan.
A review of that year, such
as I have just given, should teach
us
that
stability,
exacts
its
lance.
We
price
like
freedom,
eternal vigi¬
in
must
up
note,
that
too,
there
may be some difference of
opinion not only on the timing
and
magnitude of anti-inflation
policies, but also on the serious¬
ness
of
the
threat
presented
by
the
present boom. I believe that
there are definite danger signs,
not
much
so
in
prices
in the
as
frantic pace of consumer
buying,
eral
tightness of markets in both
be argued that infla¬
can
our
ing
some
problems.
An in¬
dollar down to par, thus aid¬
our
exporters at the very time
that their markets
were
of
cause
of
actually block the flow
make inflationary
greater.
Considerations
goods
and
pressure
such
this have led central banks
as
the
to
and
discretionary
of
use
devices
supplement
broad
quantitative controls.
In
addition, certain types of credit,
selective
to
these by no means the least
inflationary, lie almost entirely
and
outside the chartered banking sys¬
tem. I should like to
candidates
and
nominate two
possibly three for
the attention of those charged with
devising and administering credit
control
sumer
and
on
selective basis:
a
con¬
credit; term loans by banks:
caution)
(with
mortgage
credit.
Consumer credit, or "buying on
time," is
modern
an
essential part of our
Continued
improved
like
all
page
24
But,
economy.
on
Tariffs and Trade.
If we in Canada
were to
accept
principle Sir Anthony Eden's
suggestion that it would be de¬
Canadian
irt
Investment Securities
*
sirable
to
divert, say, 8% of our
from elsewhere to the
U. K.. I believe our policy would
Underwriters and Distributors
Government of Canada Bonds
imports
and
A. E. Ames & Co.
should
by
a
marked
UNDERWRITERS AND DISTRIBUTORS
1
ar-d
that
of
process
Canadian
Limited
this
improvement
by
U.
in
K.
Debentures
a
selling
exnorters,
Prices
in
quoted in Canadian Funds for delivery
Canada,
or
U. S. Funds for delivery in the
United States
,
.
port restrictions designed to divert
trade to the sterling area.
Members Toronto and Montreal Stock
Exchanges
-
OFFICES IN 14 CITIES IN CANADA AND ENGLAND
Ames & Co.
Meanwhile exchange restrictions
persist abroad not only, or even
perhaps chiefly, because of ex¬
change difficulty but because of
their protective effect for certain
vested
Incorporated
up
interests
behind
the
that
have
"exchange-control
The United States, with
exchange controls, has never¬
theless sought to bolster her own
Koslon
Direct private
agricultural
price
with
tariff
grams
-
support
and
.
■
'
LIMITED
Members: The Investment Dealers' Association of Canada
220 BAY
STREET —TORONTO,
CANADA
Telephone: EMpire 6-1141
pro¬
quota
Street, New York
Equitable Securities Canada
no
BUSINESS ESTABLISHED 1889
wire with Goldman, Sachs & Co.
30 Pine
grown
curtain."
New York
Provincial and Municipal
Corporate Bonds and Shares
the
through
\
Treasury Bills
don°
educating
consumer
service
hp
and not by some quantitative de¬
vice such as discriminatory im¬
A. E. Ames & Co.
A. E.
be
Branch Office:
507 Place d'Armes, Montreal
re¬
strictions
directed, inevitably,
against us.
In addition,
largely
the
United
what
NESBITT, THOMSON AND COMPANY; INC.
25 Broad
Street, New York City 4
140 Federal
Telephone HAnover 2-8875
Teletype NY
Street, Boston 10
Telephone HAncock 6-3355
Stock
her
of
pose
these
Financial
Exchanges
or
at
Institutions
New
net
wheat
surplus.
developments,
domes¬
for
on
York
all
to
severe .temptation to do
little discreet back-slidingtowards a less liberal trading pol¬
a
icy. Nevertheless, I hold,
in
previous years, that
prices
as
tion
Canadian
and
shou'd
be
resisted
tually
with
and
NESBITT, THOMSON AND COMPANY
in
prosperous
AND
a
a
more
world
prosperous
and hence
Limited
off in
pay
more
I have
Greensliields & Co (n.y.) Inc
tempta¬
virtue in these matters will
Affiliated
All
with
along
from
pressures
manufacturers
ment
just
Utility & Industrial Issues
for
adopted
"disguised
accepting soft incon¬
protection,
must have subjected the govern¬
Canadian Government, Municipal
Orders executed
called
vertible currencies in order to dis¬
tic
Dealers in
Public
be
lend-lease":
continued
1-4358
has
States
might
that
Specializing in Canadian Government,
even¬
Provincial, Municipal and Corporate Securities
healthy
economy
64
healthy and
Canada.
Trade and tariff policy and other
NESBITT, THOMSON & CO.
Wall Street
Telephone: WHitehall 3-9525
devices affecting the allocation of
Teletype: NY 1-3708
Canadian Affiliate
economic resources, through free¬
-
MEMBERS
ing
TORONTO
STOCK
EXCHANGE
restricting the freedom of
the market, inevitably affect the
CANADIAN
STOCK
EXCHANGE
distribution
.
MONTREAL
STOCK
EXCHANGE
v
MONTREAL QUEBEC TORONTO OTTAWA HAMILTON LONDON. ONT. KITCHENER
WINNIPEG
REG IN A
VANCOUVER
SASKATOON
CALGARY
EDMONTON
MONCTON
income
fected
shifts
VICTORLV
SAINT JOHN, N. B.
in
than by
of
income.
distribution
by
LETIIBRIDGE
FREDERICTON
or
was
In
Greensliields & Co Inc
1955,
less
Business established 1910
af¬
these
policies, or by
the burden of taxation,
the brute forces of nature
combined with conditions and pol¬
Montreal
Toronto
•
too far. It may also :
well
flationary policy at home brought
growth.
safely infer from government
action that, in spite of defections
abroad, Canada will continue to
support the principles laid down
by' the General Agreement on
already
may go
curbs may
built
pressure
tion solved
can
have
tionary
economic
room
deny,
etary
policy is more effective,
against inflation than against de¬
flation. Eut there are dangers. As
these is obviously the new infla¬
of economic resources, the distri¬
bution of income, and our national
Act revision
will
and
efficacy of wise central bank
policy in curbing inflation.
In¬
deed, experience shows that mon¬
market
The first
1956.
measures,
balanced
a
the
fronting
less, it
affecting the allocation
inflationary
cial loans to
in
al¬
But, granting the need
-
constitutes
the most important problems con¬
us
Inflation
effective policy?
No
modern banker
I
commodities and labor. Neverthe¬
1955
anti
what
be
Problems Confronting Us in 1958
prosperity.
creates more problems than
solves.
policy
II
ing
view of
provided by the de¬
velopment of the
handling of
price
less moment have been taken dur¬
to be all
by the greater
decisions
the
in
surplus through
business expansion, and the gen¬
fare of the country.
the greater statutory powers con¬
ferred
be¬
or
ute.
appear,
has
1956.
in my comments on fis¬
policy, I speak not as an advo¬
the
chanical devices provided by stat¬
have
May,
importance to the economic wel¬
sion"
may
would
decision
to
reserves
by
sua¬
strong to produce the desired ef¬
We
15%
:
of matters which
"moral
of
use
line
as
like to
greater discretion through
the increased
it
cate but
to¬
8%, to bring these
second
of
this,
cal
cen¬
moving
total
portant
devices,
evidence that
some
tral-bank
moves
automatic
more
there is
•
various techniques
policy.
While 'the
Department of Finance
fact, estimated at $160 million.
It
may
be open to question
bilizer
our
monetary
of
reserves
tinuing
ways
for
what I have particularly in mind
is a different kind of
nonstatutory
in practice; and
run
rather de¬
some
appeared
opment and growth to the neces¬ vember, 1955, once more imposed
sarily slower adjustments through' by the Bank. I shall refer to these
annual revisions of the budget. In
and similar types of credit
expan¬
any
case,
the decision to adopt sion later> in my remarks.
But
management is
made, and
butter
upon
to take care of rities—imposed in February, 1948,
swings in business activity and lifted in February, 1949, reemployment, leaving longer imposed in February, 1951, and
problems of economic devel-' lifted in May, 1952—was in No¬
of fiscal
most important
be
the
bring them to market. For
example, the ban on term loans
purchases of corporate secu¬
theory
to
owing to inflation abroad. But this
hardly a healthy basis for con¬
is
has
relied
this; particular
great
a
at
short
and
that created
dis¬
and
run.
abroad
it
loans
move
icies
wheat surplus and a drop in farm
income. Big decisions here remain
pressing indication of their nature
and
while, monetary policy with its
greatly superior flexibility could
to
possible
of
short term
neutral
selective
inflationary type of lend¬
turbance
worse:
a
the
credit
that fiscal policy would
not
in
the most
device
a
During periods of inflation¬
ary pressure,
*
automatic
as
that it would at least be
factor
ket.
in fiscal
passive do
that lie ahead.
adopted
was
ensure
at
the
year
$24
may
well
may
run
the gross national product for 1955
should be, the Minister began with
automatic principle
new
23
Quebec
Sherbrooke
Ottawa
,
.
24
The Commercial and Financial Chronicle
(284)
Continued
jrom
I should
23
page
longer-term significance—to what
a most important
I consider to be
Canada's Continued Growth
things, it
good
be carried to
individual, to
can
For
the
extremes.
expanding home own¬
for
device
goal of policy—a goal that, in a
sense, comprehends all the others:
achieving and maintaining Cana¬
da's economic unity.
Unity
Seen in Economic
ing during a period of relatively
slack trade, the NHA programme
heavy debt is to
had many virtues. But with a re¬
and the burden
turn
to
normal
conditions, and
usually the greatest for
later with a reappearance of in¬
those who can afford it least: viz.,
those who need or are attracted flationary pressure, continued
mortgage lending by banks, to¬
by "no down payment'' offers. For
the economy as a whole, consumer gether with the other inflationary
credit results in the production forces, undoubtedly made a con¬
tribution
to
instability
in
the
and sale of durable goods (a form
live
in
constant
live
in
bondage;
of debt is
of
long-term investment by the
without at the same
a corresponding act of sav¬
consumer)
time
need be no harm in
the consumer loan
is itself financed out of saving—
There
ing.
this
the
provided
then borrows in
consumer
der to
or¬
spread his own saving over
But if a great rise in con¬
time.
loans
sumer
is
financed
through
have an
bank credit expansion we
expansion not of short-term, selfliquidating credit but a long-term
loan
paid back only over a long
period, and a consequent expan¬
sion of the money
Term
loans by
supply.
banks to
corpo¬
rations and the purchase by banks
of corporate serial bond issues are
similar in effect
to
of bank-financed
consumer
and may be more
the
repayment
an
expansion
credit,
serious in that
period
be
may
longer; and the initial outlay!'for
plant expansion, increases money
incomes without providing a cor¬
responding flow of final products
on which that money income can
be spent. That
is why it is essen¬
tial, in normal times, and espe¬
cially where there is a threat of
inflation, that term loans be fi¬
nanced out of the savings of the
general public.
loans by banks,
Mortgage
bank-financed
and
are
term
a
loans
to
like
time
home, is financed without
responding
act
of
saving.
in
a
a
cor¬
As
a
national
greatness of promise which is still
perhaps
of
policy is to make
possible for the great qualities
courage, faith, and breadth of
vision to add nobility to
wisdom,
this
the most precious asset
divinely endowed young
country.
First Public
Offering of Ford Motor Stock
World-Wide by Underwriters and Dealers
Clearly, Canada's future as a
unified economic and political en¬
tity depends in part upon our con¬
tinuing success in meeting the
various short and long-run prob¬
lems we have been discussing. But
success in this,
though necessary,
is not sufficient in itself to guar¬
10,200,000 Common Shares Priced
The first public offering of Ford
in
not
does
consumer
primarily
of banking.
the field
otherwise
War and
be
handled
by regulation at the re¬
level, with good will and co¬
operation between those who ex¬
the
ut h
credit
i t i
o r
and
the
control
There should be
e s.
that
of
I
little
a
common-sense,
co-operation
and
quickly
task
There
re¬
cure.
cannot
will
be
can
accomplished.
is, indeed, encouraging evi¬
dence that
we
have already made
great progress: that parochial at¬
111
Problems
Ours
firmly believe that this diffi¬
cult
credit over-extension
straint,
case.
and
'
Possibilities
of
Achieving Canadian Unity
the
wane
in Canada. As I
have said, continued progress de¬
,
$64.50
at
Prior
the
to
widest possible distribution
At the request of
stock.
shares
or
offering
15%
about
are
of the
the
approximately
p a n y
com-
...
„
,,
^
of the total
being sold by the un-
and 3,800 of certain sala-
dealers
ried employees of the company.
Nearly 1,000,000 shares are being reserved by the underwriting
managers for sale directly to institutions, such as pension funds,
educational and charitable organ-
izations, and insurance companies,
The
Motor
Ford
ranged
New York and
jn
^11 three classes share alike
earnings anc} aSsets.
has
pany
no
stock
now
dealt with the policy
in their
pends
on
wise
decisions
in
eco¬
Under
a
stock
option
plan
adopted in January, 1953, options
were granted to certain key emfor the purchase of old
ployees
Class A common stock. As of Dec.
1, 1955, options had been exercised
for the equivalent of 647,100
shares of new common, and options for the purchase of the
equivalent of 1,513,500 shares of
the new common stock were out-
standing
Plan- opt?0™ f°r a ™axfmum °{
Detroit Stock Ex-
Under a
.
,
additional
an
,
stock, which represents 22%
the Foundation s holdings beof
to
be... Partners
ing sold by The Ford Foundation
to the underwriters for public resale
principally
to
permit
the
own
Development
total
Foundation's
The
ments.
new
900,000
of
shares
feeling expressed by our President at
Association Annual Convention in 1951, more
the Investment Bankers
recently by the President
of a Canadian University in an address to the Boston Conference on
Distribution*, and again by the President of one of Canada's ten Chartered
Banks, has also been the subject of numerous newspaper articles and
editorials in Canada in
recent months. There is a broad and
growing seg¬
opinion which feels that United States corporations are
beginning to control the economic future of Canada. This is not now the
case or ever
likely to become so. However, there is a growing concern not
only about the normally welcome inflow of U.S. capital but also, and more
importantly, about the virtual exclusion of Canadian participation in
United States controlled
operations in Canada.
puj,jic
£oard
^
of
or
direcf0'rs
company
time'of
,he
at
offering,
the
later, as the
may
determine,
has also adopted a
Umited
and
stock invest_
merd
for
salaried
program
n]ftV.p^
p
em-
y
Proceeds of
which will total about
$642,600,000, will accrue to the
Foundation, and no part will go
to the company or to the Ford
family.
considered extra dividends. The
board of directors has stated its
intention of declaring a dividend
of 60 cents, per share for the first
quarter of 1956.
tion's
other
assets
the
and
Founda-
than
equity of the
substantially all of
This
shar(£
such
In 1955, the company paid dividends
equivalent to
$3.27 per
share of the company's capital
stock to be outstanding immediately after the reclassification. Of
this amount, $1.31 per share was
prior to the sale repreapproximately 88% of the
holdings
total
govern-
company
ment bonds and cash.
the
sale,
of Canadian
As underwriters of all
types of securities for thirty-five years and with
distribution facilities from coast to coast, we are able to offer advice on
every step
common
in raising capital for
shares
or
senior
a
M idlsnd Securities
members:
w
The Investment Dealers' Association of Canada
Canadian Government,
;
and
corpn. limited
Municipal
Corporation Securities
subsidiary operation through the sale of
securities.
Needless
to
say,
even
the
most
preliminary discussion will be in strictest confidence and without obligation.
*Reprints of both these addresses
are
T] le Midland
available
member:
upon
Company
The Toronto Stock
request.
Stock orders executed
Gairdner %
Company Limited
of Canada
all
,
320 Bay
Street, Toronto, Canada
Toronto, Ontario: 50 King Street
London, Ontario:
Exchanges
West
Huron & Erie Building
Sault Ste. Marie, Ontario:
110 March Street
EMpire 6-8011
Montreal:
Montreal
Kingston
Quebec
Calgarv
Hamilton
Kitchener
London
Edmonton
New York
Vancouver
Winnipeg
215
St. James Street
West
St. Thomas: 354 Talbot Street
Private Wire
li™
Exchange
on
Member
option
ar-
the
changes, and plans to list it on the
sent
Exchanges
corn-
on
Foundation to diversify its invest-
Stock
The
funded debt,
has
Co.
the
list
to
stock 60%, and the Class A stock
hone
n?w common may be graijted to
Mid-West, Los Angeles and San officers or other salaried emdecisions of 1955 and some of the nomic policy; but, in the final an¬
Francisco and possibly other exa*aay ..ime, Pno£
an5» 1961- Forc* directors have auproblems confronting us in 1956. alysis, success in achieving and changes
'
,
,
ooc/
thorized options for 446,250 of
The
I have
Canadians Want
All Major Canadian
Share
1,500,000
derwriters to about 8,600 Ford car
£■
Association
per
current
,
underwriter to ensure the
has agreed to
best efforts
u-
his
use
titudes and habits of thought are
now on
.
,
would
a
nothing, therefore, in these three
varieties
the
than
attendant
tail
a
be
prize
unity in diversity, with the
opportunity
to
take
fullest advantage of the division
of labor, itself a product of di¬
versity in culture, in individual
talent and skill, in group interest
and activity.
experience have shown
that this can be most effectively
post-war
tend
richer
even
Ford Motor Company stock, is
The Investment Dealers'
and
greatness to that
it
rp,
ment
worthiness to wealth,
add
of
_
of
belong
control
The
source.
credit
corporations,
this
add
T
departure from traditional
investment,
to
to
role of economic
.
short-term bank financing. Longterm
maintaining Canadian unity re¬
quires much more than that. The
Thursday, January 19, 1956
.
sale, the
Motor Co. common stock, which company's capital stock consisted
was
made
yesterday
(Jan.
18, of (1)
antee Canadian unity. We are di¬
Class A common stock,
by 722 underwriters, the owned by the Ford Foundation
vided by the accident of geogra¬ 1956)
largest number ever to participate with
the
exception
of
certain
phy that makes us a long belt, di¬
vided into regions with diverse in a corporate underwriting, was shares owned by the Ford family
economy.
climates, cultures, and economic heavily oversubscribed. Itself the and certain other shares subject
Owing to natural causes, and to interests; and with each region biggest corporate financing in his- to option or purchased through
by company employees
the effect of present policy, the feeling the strong influence of our tory, the offering consisted of 10,- options
three varieties of credit over-ex¬ giant neighbor, the United States. 200,000 shares of common stock, and officers; and (2) Class B cornpansion may soon become less We are divided also by occupa¬ par value $5 per share, and was mon stock, all owned by the Ford
serious. To consider them in re¬ tional and group sectionalism made at a price of $64.50 per family. With the current sale, the
company's Class A and Class B
verse order, it is possible that in
within as well as between regions. share.
The underwriters are managed stocks
are
being reclassified so |
the immediate future seasonal ef¬ Under these conditions, which we
fects will tend to reduce infla¬ have to take as "given" so far as by Blyth & Co., Inc., The First that the Ford outstanding shares
Boston Corp., Goldman, Sachs & will consist of 53,461,470 shares of
tionary pressure. This is espe¬ policy is concerned, we can least
cially true of home building and afford the parochialism of group Co., Kuhn, Loeb & Co., Lehman stock, made up of 10,832,100 shares
construction
in
general.
Term and sectional interests which is a Brothers, Merrill Lynch, Pierce, of new common (which includes
loans and the purchase of corpo¬ natural, if not an inevitable, re¬ Fenner & Beane, and White, Weld the $10,200,000 shares now being
& Co., with Blyth & Co., Inc., act- offered), 36,148,620 shares of Class
rate securities are no longer prac¬ sult.
ing as chairman of the seven co- A stock, all owned by the Ford
ticable under existing monetary
There is, however, reason for
policy; and, since the banks have optimism arising in part from the managers. In addition, about 1,200 Foundation, and 6,480,750 shares
selected
securities
dealers
will of Class B stock, all owned by the
only the shorter maturities, the very magnitude of the task be¬
help distribute the stock in the Ford family.
amount outstanding should be sub¬ fore us.
The very diversity of re¬
United States and Canada as well
stantially reduced within a few gional, cultural, and occupational
as
in
20
countries around
the
LClas?•B1st
years and of course there will be
interestS| that creates and aggra¬ worjj
have 40% of the voting rights for.
no
additional pressure from this vates our
'
problem makes unity an
election of directors, the common
credit
consumer
like at this point to turn
to a
matter of
attention
your
.
.
to
Eastman, Dillon & Co., New York
(285)
Number 5460... The Commercial and Financial Chronicle
Volume 133
standing
cash for the household goods
they needed. Today's young mar¬
ried couples are often impatient
than $27 billion today. A
deal of this rise has gone
with this delay and prefer to get
the goods they need
and want
more
Oi Consumer Credit
The First National City Bank of New
York
expansion of consumer credit during
accompanied by changed attitudes by various
sectors in community. Citing recent extraordinary increase of
automobile paper, raises possibility of a cyclical reversal, but
Bank official notes great
postwar period,
mounted
higher at a spectacular
pace during 1955. Yet when peo¬
ple ask "Is credit too high?" we
time
credit
sales
credit
has
steadily
have to
mmm.
answer
w."
n o
have
into
W
entered
even
c o n c e r
and
he said.
criteria
have
ing's paper.
sively easy
is
1955
old
dividuals
selves
sumer
Lewis
is
level
than
at
a
this morn¬
The hazards of exces¬
terms are with us in
period,
they
major share
a
for
up
income
protracted
a
detrimental
are
not
only to the individual, but to the
credit economy. Intelligently used, how¬
impact
of
consumer
higher ever, the
credit is
before; today at
the end cf 1955, the volume out¬
standing is probably close to $36
billion. The increase during the
year of nearly $6 billion is the
largest ever recorded. The vol¬
quite another story.
The Relevant
The
big
rapid
the
credit
been
has
Factors
question is whether
growth
of consumer
of
out
line
with
the
growth in the rest of the
and
the
institutional
income is higher than ever before, economy
and
so
is
the
burden of debt changes which have taken place.
To get the answer to that — or
measured
by the percentage of
rather to get close enough to guess
disposable income going into in¬
stalment repayments. Loan ma¬ at an answer—we have to exam¬
ine the evidence on a number of
turities, particularly on new cars,
have
stretched
out further
and other questions on consumer
ume
of debt in relation to current
down
wcnder
many
people
credit.
payments have shrunk.
Small
about
cerned
the
of
state
part of
What
rise?
the upswing
tributed to transitory
con¬
behind
lie
factors
What
record-breaking
this
then, that a great
are
deeply con¬
be at¬
can
cyclical fac¬
is steady longterm growth? How sound are to¬
In the rapidly growing field of
day's terms and
today's credit
consumer
credit, however, there
risks? And finally, how long can
is not much novelty in disturbing
this go on?
changes. The other day I hap¬
The
additional
purchasing
pened across a statement made
almost exactly 30 years ago by a power provided by consumer
credit has been a major factor in
leading New York banker, which
sumer
has
He
a
tors and what part
debt.
rapid
of
expansion
mass markets for con¬
durable go«ds and promot¬
developing
bauntingly familiar sound.
warning
against
the
sumer
was
ing generally high production and
automobile
employment
•An
address
American
City,
Dec.
by
Mr. Lewis before the
decade.
Finance Association, New York
30,
War
1955.
during
Since
the
the
end
postwar
of
World
II, total consumer credit out¬
credit
than
million persons
decade,
an
Excelsior
in the postwar
families
of
an
faster rate.
even
wage
share
brackets.
other
is
minster
13,500
over
of
acres
fields, with recoverable
gas
To keep
barrels.
areas
it
re¬
with in¬
pace
Excelsior
serves,
refining capacity to 4,000 bbls. daily.
Excelsior Refineries also carries controlling interest
in
X-L Refineries
Limited, whose
$2 million
new
refining plant is nearing completion in British Co¬
lumbia's Peace River area—the
households.
be
Change in Attitude
exporting
production
that
area
the
to
soon
will
United
western
States.
This sharply increased group of
is ready to
changed
the bor¬
themselves, by society at
potential credit
borrow
users
rowers
of
because
attitude toward
The
the
its
debt by
parent
own
organization—Wilrich Petroleums—in
right holds varying interests in 60 oil wells
and 5 gas
large, and by lenders. There is no
longer a stigma attached to buy¬
ing on instalment credit or bor¬
rowing to meet an emergency or
to achieve some desired personal
wells in Western Canada and Montana,
with other leases to
be developed; in addition to
which Wilrich carries
nium
most
a
mining division with
favored
ura¬
of Canada's
and lithium prospects in some
areas.
competitive selling
methods have persuaded consum¬
ers
that this is the way to buy
goal.
Highly
durable
goods, and in fact the
majority of cars and household
appliances are bought on credit
Wilrich
Suite
1204
today.
Lenders,
particularly com¬
mercial banks, have changed their
attitude toward consumer credit.
Petroleums
67 Yonge St.
TORONTO
LIMITED
CAN.
In 1930,
only about 100 banks had
consumer instalment loan depart¬
ments;
today
at
least 80%
facilities for such loans.
tion
lenders
between
stantial
has
dealers
between
as
been
the
in
factor
consumer
have
Competi¬
well
a
as
sub¬
spread
of
credit.
Consumers
are
more
willing to
borrow
today because they de¬
sire to improve their standard of
living.
More
and
more
of
our
The
household heads today fit the pat¬
tern
of
typical user of con¬
sumer
credit—relatively
young,
head
of a family with children
under
18, and holding a good,
steady job. A couple of genera¬
tions back, more often than not,
families saved until they could
Developing in Greatness
CANADA
Lake Nordic Uranium Mines Ltd.
a
Ex-'
larger number
of industrial shares than any
Where
in Canada
are
the most
other two stock
and traded?
exchanges
in Canada.
Of the
over
$44,000,000,000
shares
$25,000,000,000
more
are
than
shares
of manufacturing companies.
Every variety of
in Canada's
company
rapidly expand¬
ing manufacturing industry
is
represented in the 243
companies in this
A
Pronto Uranium Mines Ltd.
Stock
Toronto
change lists
the
shares listed
★
pro¬
con¬
the average than
on
and
is increasing
the middlecategories
of
oil
creasing production in the
headed
and a
users
holds
Refineries
of 5,229,439
serves
at
Both
heavier
credit
sumer
is
earners
in
higher
much
risen
An increased
of families
income
are
has
(25% to 100%) in 61
and potential oil lands in Canada's Lloyd-
proven
manufacturing
★
or
before.
ever
increase of 18%. The
number
proportion
by urban
varying interests
of listed
with
o„„s
(about 50% of issued capi¬
tal) in Excelsior Refineries Limited which, in turn,
consumer
more
ways
con¬
ever
controls 1,356,000 shares
one
the
them¬
over-extend
tie
and
their
of
short- and
in termed iate-
Robert E.
25
it from
to
WILRICH PETROLEUMS
the
during
thing there are more peo¬
ple. The population has grown by
eighteen
1925. To
more
For
two years. It was
less than in
no
use
extent that such terms induce in¬
may
longer be
adequate. To¬
term
in
tendency now,
multiply the matur¬
clipped
in
credit
period.
owns
ity figures by two, and you might
no
tal
Just
expansion
instalment
ducing crude oil wells.
customary
to
marked
a
of
privilege of getting these things
Some people call this aver¬
aging out the life-cycle—acknowl¬
edging that the peak in income
Continued on page 26
now.
able to
time to curtail that
ned,
our
or
they need and want them
Everything from houses to
electrical
gadgets
is
latest
families
put it concisely, more peo¬
ple today are ready, willing, and
extending
the
maturity
so
ment credit
from
cars
one-year
the
bought on credit, and
gladly pay something in
interest and other charges for the
willingly
To
over
months
instal¬
as
new
on
unknown
territory
far
e
payments
most.
use
too long a
period, and noted that there had
been a tendency to stretch terms
rwe just don't
k
through
rise
when
the postwar
atmosphere there is place for further increases, provided that
quality is kept high.
Consumer
the
in
ably
will follow nature of eco¬
Holds in favorable economic
generally.
with
hand-in-hand
pay
tors, there has been unquestion¬
concludes that its long-term course
conditions
great
seven¬
prices and incomes. Another large
portion
was
accounted
for
by
catching up after the durable
goods rationing and credit re¬
straints imposed during the war.
But even allowing for these fac¬
By ROBERT E. LEWIS*
nomic
multiplied
has
fold. Instalment credit has shot up
from $2.1 billion on V-J Day to
Factors in the Growth
complimentary
our
group.
- ^
of
copy
Monthly Bulletin show¬
ing essential trading data
on
all issues listed will be sent
★
Spanish-American Uranium Mines Ltd.
to you
free
on
request.
Pater Uranium Mines Ltd.
★
The
★
Algom Uranium Mines Ltd.
*
largest market for
industrial shares in Canada
Oceanic Iron of Canada Ltd.
★
★
Anglo-Rouyn Mines Ltd.
THE TORONTO STOCK
EXCHANGE
★
Buckles Algoma Uranium Mines Ltd.
★
Rexspar Uranium Mines Ltd.
★
For Further Information
Rix-Athabaska Uranium Mines Ltd.
Write
TECHNICAL MINE
44
KING ST.,
25
CONSULTANTS LTD
W. —TORONTO —CANADA
234 BAY STREET
TORONTO
•
CANADA
i
26
The Commercial and Financial Chronicle
(286)
to
Continued
from page 25
use
more
credit
consumer
in
to
than ever before. Thai
is a
general explanation of the
postwar expansion
of consumer-
increase.
debt,
panded
more
Factors in the Growth
explain
credit
Of Consumer Credit
have
nearly
v/ays
but
is
it
the
sufficient
dramatic
during
to
r.ot
1955.
look
to
that,
the
much
in
years
many
comes
of the payments to a
when
income
(they hope)
pone
some
time
they have to
something for the credit, the
same amount of purchasing power
will be higher. Since
pay
will not cover so much in the way
goods. A great many families,
however, find in instalment credit
a
type of forced saving through
of
acquire goods they
which they can
bought if they
would have
never
had had to save up in advance.
these
debt
of their
because
days
high degree of confidence in their
ability to repay. An increasing
proportion of the persons in the
goods today
belong to the groups which en¬
market for consumer
labor
tered the
force in
the war
and postwar periods. Most of them
are unscarred
by the Great De¬
pression;
for
the
most
part,
throughout their working careers
they have experienced
regular
employment- and steadily rising
rates. Without the spectre of
prolonged unemployment which
haunted so many workers in the
thirties, is it any wonder that
today's worker is more willing to
wage
commit his future income?
■ the
.
formidable arrav of
"built-in stabilizers" which soften
plus
the impact ol any downturn nave
also lessened Ihe incentive to save
for
rainy
a
income
may
to enjoy the present,
a
larger portion of
commit
and
Workers
day.
often prefer
instalment
to
payments,
unemploy ¬
ment insurance, pension and wel¬
fare plans, or social security to
provide a subsistence in time of
necessity.
while
they depend
on
Good Risks
1941, against a rise of only
25% in the over-all number of
consumer
units. In other words,
since
instalment
use
them
credit
to
because
more
of
only
has work experience been
favorable, but incomes have
more
risen,
bringing
families
into
brackets.
the
is
It
good risks. Not
are
the
count
a
T
an
the
for
,
old
i,
bulk
truism
that
families
ac-
e
of
consumer
accounted
third of total
for
consumer
only
There
credit out-
units
to
all
half of
than
More
sumer
now
are
have
of
families
these
for
first
the
to
buy
a
they
car,
their
of
home
time
new
own,
their durable goods
\
the
Finally,
ways
more
to
place
Average
maturities
loans
were
attempts
about
24
months
"
i
has
credit
credit, it is now
widely used to finance purchases
S.
form of revolving
in
nondurables
finance
take
a
is
It
stores.
services;
'L
//
v
-J
department
extensively
used
trip, send
:f\/
"•£•••••
spread beyond the durable goods
field where it originated. In th$
of
'
today
your son
to
ca i
you
through
even write a- check on
and pay it back in in¬
stalments. Charge accounts hava
college,
a
or
bank,
also
spread; you can get credit
entitling you to purchase a
wide variety of goods or services
cards
billed,
be
convenience
payments
spread
the
to
later.
Each
whether it be merely
of
ter
sum
or
a
a
overtime,
total
of
new
mat¬
\ V '*
%
need
adds
consumer
%
The
credit outstanding.
The
Crucial
Auto
Market
Ba nk of Nova Scotia offers
you
convenient
banking service
across
Canada..
Thus, as noted earlier, more
people are ready, willing, and able
1 Robinson Newcomb, "Rising Incomes
Mean B'.gger
Markets," Nation's BusiNov. 1955, PP. 33.
W7HEN
r^.,
W
you
call
your every
of the
one
and
The
.
,
.
^
Bank
met
of Nova
Scotia,
by the banking facili¬
most modern banks in
bring to your projects
well-respected counsel
since
ou
.
Bank of Nova Scotia
And you
Jooh
The
largest,
abroad.
active partner
\ "•'x/-
in
need is
has been
.
.
a
very
in Canada's growth.
profit from
a mature
international
500 branches in Canada and
over
out-
the
7world, with correspondents wherever men trade,
are
ready to place all their experience and on-thespot knowledge at your service.
OFFICE
In addition
STREET, TORONTO
:
to
Branches
IN CUBA: Branches
■
Manzanillo and
BRANCHES
BRANCH
OFFICES
Branches
Montreal
Calgary
•
•
at
V
at
Port of Spain. IN PUERTO RICO:
Fajardo, San Juan, and Suntnrce. IN THE
All Branches
at Ciudad
Trujillo. IN NEW
of Nova Scotia, 37 Wall Street. IN
GREAT BRITAIN: The Bank
Broad St., London E.C. 2.,
THE
Partners
D'ARCY M. DOHERTY
.
offices
Camaguey, Cienfuegos, Havana,
Santiago. IN JAMAICA: Branches at
YORK: The Bank
,7
have
DOMINICAN REPUBLIC:
Vancouver
THOMAS H. ROADHOUSE
we
THINIDAI):
TIMMINS, ONTARIO
•
Canada
Half
Way Tree, 1 lighgule, Kingston, Mandeville, May Pen,
Mont
ego Bay, Oclio Rios, Port Antonio, Port Maria, St.
Ann's
Bay, Savanna-la-Mar, and Spanish Town. IN
KIRKLAND LAKE, ONTARIO
Private JFires: New York
across
at
Black River, Brown's Town, Christiana, Cross Roads,
ST. CLAIR AT YONGE
IIAILEYBURY, ONTARIO
to
.
I
CLIFFORD T. LOW
CLAYTON M. WILLIAMS
BANK
of Nova Scotia, 108 Old
England.
OF
NOVA
on
stretched
credit than ever
Instalment
terms
early
outgrowth
of
competition
and
easy
many
'
of
in
has
consumer
use
i
a
easier
liberalization
took
1959.
tlii|
\
made
basic part
and
the
of
di~'
ing both current purchasing power
and credit eligibility.
THE INVESTMENT DEALERS' ASSOCIATION OF CANADA
credit
to
these desires. Higher in¬
comes, over and above basic sub¬
sistence,
traditionally bring in¬
creased demand for durable goods,
and at the same time bring the
means to obtain them by increas¬
satisfy
THE TORONTO STOCK EXCHANGE
BLOOR AT BAY
very
purchases, and
the credit needed
command
to
MEMBERS
JOHN M. ROGERS
The
was
a
analysis is the part played
by instalment
terms.
which
styling, the
probably
able
are
DOIIERTY ROADITOUSE & CO.
JAMES W. COCHRANE
of any
to afford a
to upgrade
1832
LOCAL
All
contribution. But
have
well-informed and
I'
demand.
moved into income brackets where
Can ada
HEAD
as
new
con¬
ties of
BAY
growth of the two-car family, ag¬
gressive selling, and upgrading of
$10,000 bracket.
Many
market
ing the attractive
year
been
auto
the
in the $4,001
:
2.15
record
the
expectations, includ¬
ex¬
way,
paper
three times
that of all other
types cf
debt combined, while
previous
one-
why
group with purchasing power
eqiuvalent to $4,000 or more at
today's prices has increased 3~'/2
times as fast as the general aver¬
more
middle-income
middle-income
.
and
more
paper
explain
exceeded all
its rate of increase was about six
times as fast.
automobile
Thursday, January 19, 1956
.
the
use,
able
better
are
than
year's
85%
increased
has
dollars
1955
and
More
,
Consumers
automob'le
more
as
this
low-income 1955, automobile credit jumped
The 1955 automobile market has
families can't borrow and the rich $3.7 billion, or 36%. Other instal- been a
phenomenal one. About
ones don't have to. According to
ment credit rose $800 million, or 7,4 million
passenger cars were
a recent estimate,1 the number of
7%,
and
noninstalment
credit sold in the domestic
market, two
consumer units with after-tax in¬
edged up $350 million, or 5%. At million more than in 1954 and
come of $4,000 or more in constant
the start of the year, automobile over one million more than in the
before.
This favorable work experience
of
of
another
the
because
credit
age.
incur
Consumers are willing to
Stated
consumer
we
market. In the first 10 months of
later
than the peak
in family needs.
Through credit, families can post¬
usually
five-sixths
volume
to
upsurge
For
.
SCOTIA
1955
intense
money.
new
out
car
from
roughly
30
Number 5460
Volume 183
The Commercial and Financial Chronicle
...
months, and when the average is
30 months, you
can be
sure
income
that there is
proximately
at
substantial number
a
of loans with 36-month maturities.
Deals
for
maturities
longer than
however, appear to
have been far more prevalent in
dealers'
advertising than in fi¬
nance
company portfolios. Down
payments shrank, both openly and
through the device of exaggerated
trade-in
allowances.
It
finally
reached the point where a leading
finance
company
warned
that
36
months,
these
terms hurt
easy
the
dealer
through
taking the customer out
of the market for a longer period,
hurt the lender by extending the
risky period during which lthe
borrower
had
little
equity
no
or
1929
has
and
risen
11.0%
from
in
13%
i955.
7.5%
1940
Effect
in
to
the
at
(287)
ap¬
end
of
vv:';Vy;\
Business
on
Cycle
credit
Instalment credit has long been
regarded
as
accentuating booms
recessions, but not as causing
upturns or downturns. In revival,
and
would be
this
crease
the
over
long .'
at
run
a
faster rate than income. One fac¬
tor
in
shift
of
such
of
would
trend
a
be
the
increasing proportion
an
income to the middle brackets,
durable
goods purchases
where
and
In
recent
recessions, the
posedly deflationary force of
sumer
now
sell
to
bracket,
whole
a
income
new
and
they did so aggres¬
sively. People who previously had
not been able to afford
a
new
car
could buy one with payments
within their means. People who
now
ordinarily had bought only used
cars
now
new
cars.
upgraded themselves to
Such
purchased
the million
people
or
more
have
may
substantial
a
share
of
by which
cars
sales exceeded forecasts. But it is
of credit
use
income
new
brings with it
demand
skimmed
created
one
is
The
this
easier
still
foresees
not
cream
from
by
initial surge of
an
which
sustained.
brackets,
ordinarily
has
been
market
new
terms.
Unless
more
outstandings through raising the
proportion of the purchase which
is financed and by extending the
length of time the loan is on the
books.
'
,
In
1949,
of
the
intensive
That
being
the
disposable
use
today's
established.
the
case,
credit
consumer
in
well
seems
toward
extensive
credit
consumer
economy
trend
and
rise
in
percentage
from 11%
as
income
of
to
to
appear
grounds
for
alarm.
is a growing part
growing economy. But it
clear
how
much
proportion
of
credit
rise
of
our
still
further
business
without
is
the
done
liberal
can
be
Consumer
credit
not
on
danger.
Obviously, it cannot expand in¬
definitely. But an economy char¬
acterized
by high employment,
direction—this sales stimulus will
steady work,, and rising incomes
Those
behind
in
diminished
greatly
are
the
some
of
in
1956.
the
forces
record-breaking
consumer
credit.
The
support
can
rise
next
of
credit without
which
that
is
erratic
the
sense,
extent
of
credit
are secular, and pre¬
sumably sustainable, and what are
the possibilities and implications
of a cyclical reversal.
of
economic
questions
are
to
what
these forces
Basically,
sumer
the
volume
of
long-term
growth
of
population,
prices, and purchasing
It has done that and much
more.
Credit
outstanding as a
percentage of disposable personal
one
depressed.
or
sustainable
on
the
conditions
gains
nomic
a
on
generally.
re¬
is cyclical de¬
how much of the
advance
in
general
It
and above
over
long-term
will
consumer
do
a
boost
pay
tax
or
tire
cut
debt
significantly less.
and
another
Continued
third
on
a
growth
sustain¬
trend.
more
to
influence
credit than vice
versa.
Substantial Oil and Gas
Reserves Acquired By
Great Sweet Grass Oils Limited
This
in
remain
confident.
and
who
and
lender
have
confidence
employment
of
are
of
extended
1954
makes
each
it
that
oil
of
9,470,000
BILLION
18
Manitoba,
barrels
cubic
feet
lands
of
of
underway.
is
recently acquired gas and oil lands with
proven oil reserves of
1,419,490 barrels
oil,
plus
155,351
barrels
of
probable
In
;i
•
the
Western
of
excess
1
Canada,
MILLION
varied
•'
over
the United
Company
cubic
interests
of
acres
diversified
credit
the
BILLION
140
Its
reserves.
and
gas.
feet
in
has
of
oil
lands
A
sus¬
drilling
fields
in
Canada
and
is
program
also
planned
extensive
does
highly industrialized section of Quebec, Can.,
where an important natural
gas field may be
the
not
like
vanish
dawn
economic
of
But to make this
dence
the
in
duration
of
sumer
dew
!
adversity.
possible, confi¬
recently
acquired
in
credit
if
GREAT SWEET GRASS
sharp drop
confidence, con¬
a
would
resume
traditional role of
intensifying
the reluctance
cessions;
both
incur
extend
new
OILS
LIMITED
its
Suite
re¬
305
—
100
Adelaide
St., W.,
Toronto, Can.
to
instalment
debt and the
continuing necessity
for repayment would reduce pur¬
chasing power and retail sales.
The
stimulating effects of
credit
are
also
con¬
sometimes
The $5 billion added
purchasing power in 1955 by
expansion
of
instalment
credit
outstanding is less than 2% of to¬
tal disposable income and equal to
over-rated.
to
about
sumer
one
week's
worth
expenditures. If
of
Canadian Oil & Gas
con¬
•
consumer
Reserves Ltd.
participating
with
OILS
program
—an area
GREAT
LIMITED in
one
a
SWEET
natural gas
currently under
area
favorably regarded
a
of Canada's
way
in
of Quebec
as a
of commercial natural gas
that would find
in
possible
deposits
quick and ready market
largest industrial
between Montreal and Quebec
areas—•
City.
IN ADDITION Canadian Oil and Gas Re-
1
serves
Ltd. carries
important participat¬
ing interests in 43 oil wells in the State of
Oklahoma and in three
I
L
I
T
producing oil wells
in Alberta
yellowknife yold
8% net interest in
three
ED
—
capped
plus
gas
an
wells v/hich will shortly be
productive through West Coast Transmis-
VI
sion
pipe-line.
'
CANADIAN OIL & GAS RESERVES LTD.
MINE OFFICE: YEUOWKNIFE, N.W.T,
HEAD OFFICE: 2810,25 KING STREET WEST, TORONTO, ONT.
-
r*
'j
a
developed.
scope and
downturn is es¬
the
shatter
or
at
holdings
limited
sential. However,
should
the
source
a
for
taining force of instalment credit
drilling
A
are
States.
20
the St. Lawrence Lowlands
L I
in
gas
than
more
during
the
GRASS
PERSONAL
oil
natural
Can., Great Sweet Grass has
.
ill
month
clear
acquired
and
reserves.
prospects
instalment
new
just
gas
so
the average, close to $21/2
on
billion
has
of
acres
Oklahoma
total
the term of the loan. The fact
that,
was
also
both the borrower and the
as
of
Further drilling
In
those
to
worker's
over
of
some
temporarily laid off
keep on buying
are
enabled
long
even
company
9,104,
reserves
over
gas.
em¬
ployed
in
State
proved
The
of workers who remain
95%
the
including 38 pro¬
ducing wells
and
52
well
locations
with
estimated,
developed and undeveloped, net
cushion¬
a
Canadian
interests
is
(HO
had
page
from
ing effect in recessions of the 1949
and
1954 magnitude, so long as
sumer
Changes in income and sales pat¬
terns
of
might be argued that instal¬
eco¬
activity is considered to be
boom
able
In
level
nature
which
consumer
power.
than
Similarly, the proportion of
cent
recent
to grow along with the
strain
depends
pends largely
con¬
credit outstanding might be
expected
much larger volume
a
effects
con¬
apart
ment credit contributes
consumers
Altogther,
more
terms in 1956—and at present the
trend seems to be in the opposite
be
is not
aggregates
and averages. It has to get down
heavier than
are
important to remember that open- about
13% over a 15-year period
ing up a new market, in this case does not in itself
tapping
debt
the
debt has not been much in
evidence.
purely seasonal influences, there
Shifting attitudes toward was no net reduction in instal¬
interest.
debt, the wider variety of uses of ment credit at all, and outstand¬
credit, and the greater accessibil¬ ings rose steadily
througnout tne
Impact of Easier Terms
ity to credit also contribute to the year. In 1954, instalment debt re¬
What happened was that people
relatively faster growth of credit payments exceeded
new
credit
could buy new cars with less cash volume.
There also has been a
granted in the early part of the
and with lower monthly payments drift over
the years toward more
year, but the dip in outstandings
than previously. Within the group liberal terms—a
highly irregular was only 3% or $345 million, sea¬
which customarily tends to buy drift because of
Regulation W and sonally adjusted. By late
spring,
new cars, many persons presum¬
other influences, but nonetheless the
volume of credit was rising
ably accelerated their new car a discernible trend. Not only do
again and contributing to pur¬
purchases by a year or two be¬ more liberal terms induce more
chasing power several months be¬
cause of the favorable terms. Even
people to buy more on credit, but fore industrial production turned
more
important,
dealers
could they also expand the volume of the
corner.
more
from
sup¬
average.
out
consumer
answerable
lose this $5
stimulus, but it could be
growth in consumer
made<up by a general increase in to the burden on individual bor¬
beyond its previous peak instalment credit contributes to wages of only 2 %%■ or a cut in rowers. Last spring, the Survey of
taxes of
relationships to
income
is
not purchasing power and helps put personal
15%, neither Consumer Finance showed us that
necessarily proof that the volume men and machines back to work, possibility < requiring
an
undue only
about
one
eighth
of
all
outstanding is above a sustainable in the later stages of a boom with stretch of the imagination. Admit¬ spending units or a quarter of
level. A good case can be made many lines bumping
against the tedly the impact of instalment those with debt were committed
for
the
existence
of
a
secular ceiling of capacity, it adds fuel to credit changes is centered in the to pay out more than 20% of their
trend
in the relationship
itself. the fires of inflation, though in strategic consumer durable goods income
every
month. About
a
That is, there seems to be a tend¬ this it is not much different from sector, but it would be difficult to third of all borrowers had
liquid
other forms of credit. In a down¬ say whether or not the stimulative assets sufficient to cover their en¬
ency for consumer credit to in¬
Yet
by
pay
question of whether there
is too much
billion
turn, repayments subtract from
badly needed purchasing power.
The
unchanged
in
example, not.a forecast
credit
in his car, and hurt the consumer
making -him
remained
1956—an
—the economy would
27
100
Adelaide St."
West,_ Toronto 1, Ont.
;
28
The Commercial and Financial
28
Chronicle
.
.
Thursday, January 19, 1956
.
(288)
had in
levelingoff in sales would bring a levelof
Continued from page
27
accounts
bank
govern¬
or
bonds,
but
not
amount of their debt.
ment
the
months
that
lot of
credit
But
1955, and a
cars
have been sold and
extended since that time.
in
was
would
full
early
two
however, is mounting and
course,
existing ones are paid off; in fact,
the Survey has found that families
with debt are more inclined
to
Roughly one fourth of
hardship to make
payments and another
ment
some
other
them
forced
to
purchases.
words,
about
sumers
were
one
of
of
other
is
con¬
purchases.
families
one
of the debt and the
of
tribution
indicate
will
constant
con¬
credit
consumer
to
low levels of delinquen¬
cies, repossessions, and
losses and
further
in the
increases
use
provided, of
can
keep the
credit,
consumer
that
quality high.
we
course,
de¬
in the
of Allen
Company, New York, has been
Allen,
partner
investment banking firm
&
chairman
industry
in 1955. You
can
shift
mates of the increase
your
One favorable feature
appreciable dilution of the quality
new
C. Reid
a
g e r
en
of
Consumer
that
one
Finances
fourth
rapidity
indicates
of families
with
of
toward
credit.
instalment
outstanding
credit
to
maintain in 1956 the same volume
Co.
Treasurer:
Henry VanderVoort,
Nauman, M c-
Mr.
is
now
route
to
Fawn & Co.
Manila, B e n-
A
guet's head¬
quarters, to
ment
was
also
made
of
the
get first-hand
information
reappointment
of Fred J. Oppat
intensive
credit.
The
use
forces
of
income
in
Herbert Allen
of
re¬
the
brackets, development of
and favorable attitudes
debt,
&
and
on
the
opera¬
tions of the company.
Benguet operates one of the
largest gold mines in the world as
well as the largest know deposit
in
the
chrome bearing iron
world. The company
appear
destined to
has characterized the post¬
such
as
war
decade, there
is
place for
a
also
operates lumber, timber
properties and
sulphur property to develop.
four other chrome
one
n n o u n ce¬
A.
Warren
Wood
as ExecutiveExaminer and the
appointment of Betty N. Suiter as
Secretary and
Assistant
Secretary.
board for
the
to
elected
Governors
of refractory
ore
and
continue except in the case of a
lime properties.
with which it turns over. More
Benguet, which
Finally, We face the question of
than 10% of the outstanding debt where do we go from here. It will major economic reversal. In a fa¬ currently employs approximately
vorable
economic
atmosphere, 6,000 people,
is repaid each month. The Survey take a much smaller expansion in
recently acquired
of instalment debt is the
W.
Man-
.
Allen
trend toward more exten¬
uses,
Andrew
General
down from
sponsible for this trend, including
probably be back in the market
Roy
Neil,
picture, we have
In the broader
concentration
Vice-Presi¬
dent:
President
mobile industry.
consumer
&
s
about the auto¬
are
more
d
m o n
Company.
Hausserman,
esti¬
I
Baker,
by
Judge J. W.
figure according to how op¬
and
Con¬ 5 i
announced
in consumer
credit next year up or
sive
Wood,
ing Co., it was
$4% billion increase
a
of
•
A.
Warren
Benguet
volume of sales
that caused a
1956:
President:
of
in 1956 would
in automobile paper
seen
for
board
of the
solidated Min¬
finance the same
that
Elects New Officers
DETROIT, Mich. — The Detroit
Stock
Exchange
announces
the
election of the following Officers
directors
elected
estimated that a
$1V2 billion
has
spokesman
Herbert Allen Director
Herbert
Detroit Stock Exch.
*
'
net increase of only
middle
soon.
gradually
automobile
An
cline.
emphasize that there has been no
again
of
so.
should
payments,
of the soundness
evidence
do
timistic you
-
,
purchasing power. Recent reports
Turnover
these
debt than those who are
rate, the rapid turnover
At any
temporparily out of
Rapidity
of
In
new
debt free.
postpone
fifth
the market for major
Most
incur
that debt repay¬
admitted
fourth
pay¬
great many of these families, of
acquire new debts as the
A
these found it a
instalment
complete
would
Only about 7% would still be pay¬
ing on this debt at the end of 1956.
October
the Survey Research Center found
that 45% of consumers had instal¬
ment debt.
early
ments on their debt within a year.
in
that
know
do
We
still
should
Thus, the net
increase in outstandings, which is
the excess of extensions over re¬
to
continue
this year
have
it paid off in six
or less and an additional
debt
fifths
a
credit. The volume
Of Consumer Credit
some
we
other words,
In
ing-off in extensions of instalment
of repayments,
Factors in the Growth
instalment
that
sales
credit
1955.
three-year term are:
a
Harry A. McDonald, Jr., McDon¬
ald, More & Company; Roy W.
Neil, Andrew C. Reid & Company;
John K. Roney, Wm. C. Roney &
Company.
the
Other Governors making up
Board
C. O'Donnell and
of R.
Dilworth
Lawrence H.
are
Company,
Raymond W. Miottel of Paine,
Webber, Jackson & Curtis, whose
terms expire in 1957.
Charles E.
Parcells
A.
Charles
Exley.of
&
Company, George A. McDowell of
B 1 o s s e r & McDowell,
expire in 1958. Ed¬
ward C. P. Davis and William A.
Straus,
terms
whose
J. BRADLEY STREIT & CO.
Counsel
as
will
Edwin
and
White, Bower & Prevo
of
Bower
Cudlip
&
McKean
continue
Wright,
Dickinson,
of
Walker
Davis,
LIMITED
will continue as Auditor.
MEMBERS:
Nominating Com¬
are:
Samuel
Elected to the
1956
mittee
Calgary Stock Exchange
The Toronto Stock Exchange
for
Hague,
Smith, Hague,
Charles A.
Noble &
Kreidler,
Company;
Canadian Stock
Stock
Edmonton
Exchange
Exchange
c/o
Baker, Simonds & Company;
MacArthur,
Reginald
Kenower,
Peter M.
MacArthur & Company;
Charles A. Parcells
Company,
and Raymond
C.
Macpherson,
DIRECTORS:
6
O'Donnell &
J.
Bradley Streit
Joseph A. Ilackett
J.
Douglas Streit
C. William Streit
Company.
Harry J. Shanacy
Wilbert B. Bell
A. S. E. 5 & 20 Club
Receives Slate
'
Philip
Diamond,
H.
President,
& 20
American Stock Exchange 5
80 RICHMOND STREET
WEST
Club, has announced a slate of
new officers which will be elected
EMPIRE 3-7477
organization's annual meet¬
at the
TORONTO, ONTARIO
ing on Jan. 19, 1956.
composed of
Exchange members who
organization,
The
regular
seats for 25 years
have held their
has
proposed Rulley
for President; Harold J.
more,
or
Koerner
Vice-President;
Jacob
Treasurer;
and Ray¬
Brown,
Feinstein,
ALATOR
CORPORATION LTD.
C.
Leonard
of the Club's
Mining and Industrial Financing
Greene,
Chairman
Entertainment Com¬
announced that an over¬
was expected at the
mittee,
Canadian
Secretary.
mond A. Bau,
crowd
flow
organization's annual meeting and
dinner
which
will be held at
Luchow's restaurant.
RECENT UNDERWRITINGS:
CONSOLIDATED
EUREKA
SUDBURY BASIN
CORPORATION
LTD.
MINES
•
LTD.
J.
•
HOYLE
BRADLEY STREIT,
JOSEPH A.
The
FROBISHER LTD.
QUEBEC METALLURGICAL INDUSTRIES LTD.
MID-CONTINENT GAS AND OIL LTD.
J.
*
MINING
"
COMPANY LTD.
of dpwntown
C. WILLIAM
STREIT, Treasurer
STREIT, Secretary
WEST
EMPIRE 3-1451
New York, prior to
L. D. Sherman & Co.
L.
D.
Snerman
&
Pine
Co., 30
Street, New York City, announce
the
Edwin
firm.
trading
TORONTO, ONTARIO
April
on
Edwin Abele Joins
that
80 RICHMOND STREET
organized
June, 1921.
HACKETT, Vice President.
DOUGLAS
Club,
17, 1947, consists of. 160 members,
68 of whom joined the Exchange
when it was known as the New
York Curb Market on the streets
was
as
A.
Abele
department.
formerly in
partment
Barnett.
of
has
co-manager
Mr.
joined
of
the
Abele
the trading de¬
Franklin,
Meyer
&
.1» ^r^Vjw-'W, »Wi?ii.%•'». uW.t+itiy&> ft..1
■iMWEwwMi'MiimiMiiiimiiiiiiii wwniw»iiw»i.»<w><w>h>iCT\*!*>,•
Volume 183
Number 5460..
nij^, ,r
1,-
w«.i
,
u
Mutual Benefit Life raises its employee retirement
age policy
to 68 on an individual case
by case basis; Research substanK
,
position
r
tirement
t
ifp
in
"American
business and
indus-
a
intending to discard age 65
hard and fast retirement
the
nation's
12th
largest
life
a
employees to
in-
con-
tinue employment until age 68.
W
and
Paul
Stillman
VRrLl
H. Bruce
Chairman
S^man,
Palmer, President,
of the Mutual Benefit Life Insurance
Company announced that the
Directorate3 give
more
trade union
effective
assets "
noticeable
Thev
'trend
SI??hprp
toward
"a
postpon-
ing the age for retirement'' in
American business and industry.
J
The
proved
Board
an
of
Directors
amendment to the
such
a
fader's
and govern-
ment specialists have argued the
P°int of aSe 65 retirement. In
recognition to "thp rnmnanv'c hn
man
by
the
premature retirement"
probably
apcom-
over
declaration
$5
caused
billion.
many
was
This
large
those instances where it is evident
to the company that the best in-
with
terests of the
pension
the
drives
com-
problem as their great
industry - sponsored
plans in 1948 and 1949
for
i
the century. Even as recently as
monthly
our
&
Mutual
Benefit
have
studies
sive
Mr.
Board,
chairman, said
man,
On
Still-
made
area of
Ontario, Silonco holds
claim-groups covering a total of 6,500 acres.
Extensive exploration programs on several of these
groups has given encouraging results.
tirement. "It was clearly evident,"
he said, "that age 65 is an arbi-
trary age for retirement and to
apply it inflexibly is unrealistic
in
In
light of recent develop¬
ments.
Among these were cited
the
increased
longevity of men
a
kinds of assets," Mr. Stillexplained. "One of the most
valuable
are
the human
assets,
Members:
STOCK
EXCHANGE
THE INVESTMENT DEALERS' ASSOCIATION OF
CANADA
retirement at
44
King St. West
Toronto 1
depression
of
V
EMpire 8-4561
I
^WUWVVVWHHHHUUVWUHVUVUVVUWUUUWHUM,
an
as
chosen many
age
an
in
ago
a
holds
substantial
a
Glenmar
drill
LaCorne-LaMotte lithium
participation
in
in
group
the
Quebec.
Silanco
is
currently
negotiating
for
copper-nrospect
properties, in British Columbia and the Noranda Area,
Ontario.
Silanco
holds 338,961 shares of Cobalt Consolidated
Mining Corporation Ltd. and 12,000 shares of Quebec
Metallurgical Industries Ltd. and $19,000,000 of Cobalt
Chemicals
Ltd.
bonds.
of business
theoretical point
era
in
that
fact
The
retirement.
acre
1,900-acre
camp,
are the brains, skills, abil¬
ities, initiative and loyalties of
the people who comprise a busi¬
ness.
We found, as a result of our
studies, that these human assets
were sometimes wasted by forced
years
Ontario, Silanco
Lithium Mines Ltd. which is currently preparing to
of
composed
of
area
with diamond drilling currently
Townships Area, Quebec, Silanco holds
property.
A geophysical program is
planned for early beginning.
3,900
a
Silanco
is
uranium
In the Eastern
country and
workers were
able and willing to continue em¬
that many
business
River
18 claim group
an
under way.
this
in
women
Blind
the
holds
the
and
owns
two
former producing cobaltCobalt, Ontario—the Violet and Beaver.
at
lease
a
seven
which
TORONTO
LIMITED
In the Bancroft uranium
by
the company on the subject of re-
man
THE
MINING
COMPANY
arrangement
with Cobalt Consolidated
Mining Corporation Ltd. development work is planned,
commencing with the company's Beaver mine.
that exten-
been
Company
silver mines
■HEAD
1300-100
ADELAIDE
OFFICE.
ST.
W.,
TORONTO
1,
0NT.
this magic figure of
65 was chosen largely because it
is the criterion for eligibility for
social security benefits points up
many
a
cases
basic weakness.
"Age 65 is outmoded as an in¬
retirement age.
Our re¬
in this area showed defi¬
flexible
Our latest Issue of
Canadian Metals Survey
search
nitely that the trend is toward ad¬
vancing retirement, a trend that
is supported equally by manage¬
ment and the worker, as well as
by organized labor.
"We
Available
on
request
Members
217
BAY
STREET
Toronto
Stock
Exchange
feel good management
an
John M. Easson & Co.
enlightened
attained
In
order-
from
a
those
who
will
maximum
available
For
action
the
President: Hon. Leslie E. Black well, Q.
standpoint
for
continue
not
beyond
in
65, the
age
those
at present at
Toronto
Director: Andrew Robertson
Toronto
Director: Martial Dumulon
Haileybury, Ont.
Mine Executives
E. E.
Campbell, B.Sc., Mining Engineer, Manager
J. E. Armstrong, B.Sc., Mining Engineer, Assistant Manager
Metals Produced
actual retirement.
SILVER
Jos. McManus Wire to
Co.,
&
COPPER
NICKEL
Operating Mines
Jack M. Bass & Co.
McManus
Amos, Que.
Director: Dalton Dean
COBALT
Joseph
Toronto
George E. Buchanan
that age.
continuing in employ¬
upon
Derby, Conn.
Secretary: John T. Symons, C.A.
pension benefits will be
as
Toronto
C.
Vice-President: Paul H. Hershey
Treasurer:
equity
ment, pension payments will com¬
mence
Officers & Directors
the
will
maintain
pension
employment
to
Board."
to
LIMITED
A
ages
approach
through
taken by the
Mining Corporation
dictates
company.
our
retirement
of
TORONTO, ONTARIO
Telephone EMpire 4-1138
CONSOLIDATED
of productive
use
flexible
problem
be
:
in
manpower
more
COBALT
taking this step because
are
we
39
Broadway, New York City, mem¬
Cobalt Lode Mine
Agaunico Mine
Kerr Lake Mine
Christopher Mine
Crown Reserve Mine
Foster Mine
bers of the New York Stock Ex¬
change,
announce
of
ment
a
connection
Co. in
direct
with
establish¬
the
private
Jack
M.
Nashville, Tenn.
wire
Bass
&
The Mc¬
Manus wire system coverage now
totals 37 cities from coast to coast.
On
Jan. 28 and
Manus
meeting
of
in
&
of
all firms
Chicago
sador.
Co.
is
29, Joseph Mc¬
sponsoring
partners
on
at
and
Outside
Exploration
Blind River Uranium Area
West Hawk Lake Lithium Area,
Manitoba
Temagami Copper Area, Ontario
Nairn Township Copper-Nickel Area,
(Sudbury), Ontario
Mine Office: Cobalt, Ont.
a
traders
their wire system
the Hotel Ambas¬
Head Office:
100 ADELAIDE ST.
by
Gimma is located in the New York
Holdings and Current Activities
many
WILLS, BICKLE & COMPANY
made
office of Hornblower & Weeks,
REFINING
The
that with the older ages has also
"A
request.
announcement
an
SI LANCO
ployment at age 65.
on
partner in the
director of Crystal
shreienor?1SLaP' ^rnnoanv ^Mr
D Keim> Secretary-Treasurer.
It has also been pointed out by
INVESTORS DIGEST
Available
a
students of problems of the aging
the fact
Copy of
keen eiected
general population since early in M. R. Keim, President and Donald
i
a
f*rm °f Hornblower & Weeks, has
ana
at 785 sixth Street to engage in to
a securities business. Officers are
in- the
of life
expectation
xr«-w,
Colo.
C°' has been formed with °fficeS 0il and Land Company, according
steadv increase
a
omlst> Sumner Slichter declared and acumen.
*hat
anr\ual loss in industry
in explaining the action of the
from '
employee
benefits plan corporations to re-evaluate their
which will permit employees to retirement situation. Labor unions
continue working until age 68 "in too have been
deeply concerned
A
have noted
1950 the respected Harvard econ- come improved health, vitality
pany's
employee and
BOULDER,
the 20-year period of 1931-1951,
there has been an increase of more
than a year. For example, males
a&e
*n 1931 could expect on
the average to live 1L77 years
longer, while in 1951 this figure
home office employees will be had increased to 12.75. The maffected at this time.
creaseis even greater for fema es
For several years social work- the
life expectation impioving
ers, economists, psychologists, the more than two years during the
Medical profession "business' and same 20~year period.
said,
in
anchange which would
own
served
Previously the company's employee benefits plan required all
employees to retire at age 65. The
company, which has assets of $1V2
billion, employs 3,700 people
throughout
the
country.
Only
company
nouncing
permit its
be
as continuation."
date,
surance
will
pany
a
the'Mutu^rBenefit
advancing, flexible retirement resulting
in conservation of human assets.
try
at
Joseph Gimma,
(Special to The Financial Chronicle)
c ompulsory re¬
i' fixed age which
against
:
29
Jos. Gimma Director
Keim and Co. Opens
...
,
..
a
toward
Tf'V'vr*,<'>ttr«WMMinRMww
(289)
4,-ru-
trend
'i-
The Commercial and Financial Chronicle
Trend Toward Retirement Age Postponement8ained n,0It,entura-For consistent
part, labor has taken
the most
bates
-JBT-W, •fvv
Suite 1300
W., TORONTO 1,
Ont.
30
The Commercial and Financial
Chronicle
(290)
benefits
are
widespread.
They
important and highly acceptable part of our economic
are
Competition and the
^
Taxation of Co-operatives
life.
Associate Professor of Finance
them
on
serious loss of
marked financial advantage
a
revenue
form
come
Among
in
venes
hills
many
to
ings to
January will be one or
More
vantage of co¬
operative
a s
such
tion
ices
revenue
but to
place the co¬
operatives on
their
Robert
T.
gigantic
Patterson
and
long - established
rulings, co - operatives
Treasury
can
avoid taxation
part,
and
in
on
some
their earnings.
some
more
the
cases
all,
of
It is possible, also,
business
Private
net
not
are
myriad,
and
best
wise
banded
together
When
taxes
other
many
Congress
by
buy
levied
were
forms
at
business,
co-operatives
favored
Tax
rate
Statute
imposed
1%
a
The
Corpo1909, which
of
tax
on
of
exempting them.
the
on
for
the
mutual
benefit
of
their
members."
There
to
a
their
slight
so
of
viewed
for
objection
advantage for
tax
a
business that
been
is
on
much
was
sympathy
revenue^ acts
exco-operatives;
of all
others
was.
for
most
of
patronage
taxable
income
as
received
that
to
association
itself
paid
This
-
not,
was
of
.
tions when paid out
it
meant
earnings
that
As
to
This
tax
come
their
meant,
rates
,
cos*s
serious
loss
of
source
of
the
not
competitive
dividends,
as
advantage
corporations, it would modify that
part
some
toward
tax
equality.
step
a
Then too, it
the
sweep,
would
earn-
yield
,,
,
.
-,.
,
new
such
Merely
to the whole
under -certain
received by
also,
conditions,
the members
Since
1952,
when
,
problem of tax dis¬
lead to fur¬
appraisal of it by Congress.
Meanwhile,
court
...
extent that
the
to
the co-operatives use the methods
.
.
decisions have
ther
divi-
as
several
proposal
the
legislation calls attention
crimination and may
exemptible
ease
•
.
bers
became
to
revenue
little the burden upon all other
a
were paid or allocated to mem-
...
of
he d that when
tax
which
escape
now
are
certificates that allocate
co-opera-
available to them and which
tives'
fair
perfectly legal, they
income
vaiue
have
they
^
no
received
,
certificates
by
bearing—the
the
is
are
and
over
These decisions
ihl
f
-
10
,
noninterest
usual form in
earnings
were
and
a
they
tl
m
as
gives
more
Congress, for
any
tax exemption
sufficient
surprise
it
gradually drive them out of busi¬
-'4'
earnings
are
y
effi¬
as
cient and economical in their op¬
to
pos-
advantage
competitors, they can
ness.
blow to
a
their
without
great extent
Co-operatives that
made
th
are
gs are
And
them
part
erations
as
their
corporate
petitors do not need
and
earnings ana
to
survive
and
a
com¬
tax subsidy
grow.
SHARING
of
in¬
corporate
what
had
that
CANADA'S GROWTH
in
Revenue
make
financial
heavily
MONTREAL
rivals.
1951,
Code
the
a
many
their
over
corporate
When,-
and
gave
marked
a
the
CANADIAN
Internal
amended
was
STOCK EXCHANCE
to
undistributed
earnings
taxable, little
gained for the Treasury. The
of all
co-operatives
was
co-operatives
could
allocate
Savard
the
.
230 Notre
Thus,
several
dollars
paid
MONTREAL STOCK EXCHANCE
CANADIAN STOCK EXCHANGE
TORONTO
STOCK
of
that
to
"industrial"
can
increase
place since 1874
exchanges for the trad¬
shares
ing
the
services, and in
"
has
enabled
their
MONTREAL
more
cor¬
of
mining,
oil
and
industrial securities.
porations.
be
The
100
member firms with 425 offices
throughout the world
and
and
instances it
some
major
Canadian and U. S.
saving, they
facilities
them
of
millicn
otherwise
their
leading
for
Treasury
With this tax
sources.
One of Canada's
mem-:
promissory
hundred
would
the
Canada's
market
is added
annually to the co-operatives' re¬
EXCHANGE
Dame Street, West
earnings-; to
form
expansion.
Members
.
in
to
notes, certificates of benefical in¬
terest, and the like, while keeping
tne cash, tax
free, for growth and
Hart
6-
their
bers
continue
assure
serve
the investor
prompt execution of orders.
to
buy out
taxed com¬
heavily
petitors.
QUEBEC
•
TROIS-RIVIERES
DRUMMONOVILLE
ST. JOHNS, P.O..
•
*
•
Tax
SHERBR00KE
CHIC0UTIMI
some
free
prices
than
petitors.
TKETF0RD MINES
earnings
co-operatives
those
And
also
to
of
permit
set
better
their
where
tax
Canada's
M. S.
E.
Security
C. S. E.
Market Places
com¬
favored
patronage dividends combine with
better
40
Exchange Place, NEW
Tel.: HAnover 2-0575
170
Westminster Street
Ocean Front at 67th
prices,
patronage
YORK
TIL A':
NY 1-2339
PROVIDENCE,
to
the
the
attraction
of
co-operatives is.
WRITE
FOR
A
FREE
BOOKLET
AND
MONTHLY
irresistible.
.
P..
In
recent
markedly
St., Miami Beach, Fla.
years
co-operative
upward.
mates of the
culture,
the
business
trend
cf
has
been
Latest
solely
ST.
FRANCOIS
esti¬
Department of Agri¬
made
453
for
farmer
co-operatives, show that between
are
enjoy the
can
government
in its cost.
if the
case
of
participating to
nontransferable,
rn_onpratives'
Treasury
benefits
as
the
y
,
members. That
mar-
not taxable
are
h
,
of
private
over
advantage and be, at least,
taxpayers.
dends.
sug¬
tax-in-'
the
end
co-operatives
of
—
Although
patron-in most*
revenue
funds
advantage
taxed
Toronto
would
duced
corpora-
government,
.,
_
when
be; considered
reconvenes.
withholding tax that he
gests
^ax exempt to the extent that they
minute loss to the Federal
a
co-operatives
to
the
ings of the co-operatives—already
a slight tax sav¬
ing to the co-operatives became a
Plateau 3971
the
,
Then, at one
Government and
MORGAN, O.B.E., M.C.
Private Wire
on
:i however,
rose,
been
DAVID CLARK
will
Congress
co-operatives'
bearing
Were
upon.
,
'he earnings of private
but
acted
not
seems
one,
taxation" that applies to
.
late in the
came
was
likely, however, that the
Secretary's proposal, or a similar
earn-
course,
and
earnings the dividends
credited
or
members.
MONTREAL
It
to its members if it did.
or
suggestion
session
did
jngs,
subject to
•
it
allocate its
or
apply
practically tax exempt by:'
liberal
Treasury rulings..' These
rulings allowed them to deduct
cases, that only a small
the earnings could be
D'ARMES
if
out
patronage
would
It
The
Then, at least,
earnings of a co-operative
were subject to some
tax—either
the
with¬
20%
a
on
salaries.
who
the
to
of
divi¬
in the
same manner as the present with¬
holding system for wages and
tax
dends.
them.
not pay
tax¬
Hum¬
Ways and Means Commit¬
enactment
holding
were
those
tax.
COL. W. E.
tee
period
dividends
of
Secretary
made
from their
507 PLACE
House
was
But
the
avoidance
double
prompted
co¬
phrey, last July, to suggest to the
conjecture that the indue, in some considerable part, to competitive advantage through the leverage of tax
exemption.
-
the
iarmers'
This
ation
high
income, it
fair
a
crease
Thursday, January 19, 1956
.
patronage dividends of
operatives to escape taxation.
As
year.
.
the
bil-
very
corporate
gen-
enlisted.
income
of
trans-
$2.3
per
period
a
rates
their
from
^
co operatives earn
experimental, allocated.
as
which
the
was
1952-53
nonredeemable,
then little
was
form
to
tax
income
of
corporations, exempted various
organizations, including co-operatives, which "operated exclusively
and
EXCHANGE
to
wholesale goods that served their
daily needs.
Successive
EXCHANGE
or
tage.
^otual associations
empted
MEMBERS
v a n
for buying and selling. Here and
there in the cities consumers like-
had
MORGAN & CO.
buy
to
d
a
goods they purchased were
overpriced,
sought
economic
strength
in
groups.
are
co-operative
of individuals
.together
the
$9.5 billion
the
mere
Many are
firms
with
far
flung
operations.
They man¬
the
lion
them,
of those who bought their
crops, or when they believed that
business.
wholesale, and retail
of products; they pro¬
banking,
insurance,
tele¬
activities
STOCK
corporations
mercy
of whom belong
of
to
and
CANADIAN
contrast
Farmers^ especially, when at the
serv¬
ufacture,
STOCK
their
taxed at from 30
are
small group
erally
MONTREAL
marked
and
increased
of-
favored
stockholders.
joined
sell
phone service, irrigation, housing,
medical care, and electric power;
they gin cotton, truck livestock,
grind feed, and pack fruit. Their
greater
in
ordinary
on
a
who
million
thousands
vide
is
of
52%
tax
co-operatives and
their
was
a
associations.
volume
neighborhood
principal
competitors.
Under the present
law, as it is qualified by court
decisions
or
three
over
These associations
nearly
equal basis
with
provide various
considerable
more
sometimes
the
But
Originally,
earn¬
such
They
gross annually an estimated $13
billion.
The
majority of them,
among
which
are
the
biggest,
serve farmers; but city consumer
co-operatives and retailer-owned
co-operatives,
also,
transact
a
important
loop hole in
a
those
11,000 co-operatives
well
individuals,
merely to plug
system
for
to two
not
an
the
than
goods and
-
of
legisla¬
want
allocate
in the United States buy and sell
Eociations. Advocates
to
their members in
not taxable
ad¬
tax
legal
prepetual
income, and their
stockholders pdy tax on most of
that when received they are
as individual income.
way
and
corporations
to
corpo-
the dividends disbursed to
them
for
be
Congress when it con¬
intended to reduce the pres¬
more
ent
the
in
of
that
and
while giving
the
of
tax.
to
enjoy the
of
justify the corporate in-
members
corporate rivals.
offered
to
status
are
business, such as
liability for their mem-
fered
their heavily taxed
over
they
existence—criteria
the bills proposed in Con¬
gress to reduce the present tax advantage enjoyed by cooperatives, presents reasons why these organizations, which
compete with other forms of enterprises should bear an equal
burden of taxation. Says' present tax discrimination in favor
of co-operatives causes a
and
ber-owners
■
co-operatives
prerogatives
limited
CJaremont Men's College
Patterson, in commenting
the
corporations
legal
rate
Prof.
of
1940-41
actions
this
.
Most
PATTERSON
By ROBERT T.
an
.
XAVIER
MONTREAL, QUE.
ST.
REVIEW
Volume 183
Number 54C0
...
The Commercial and Financial Chronicle
(291)
How Population Movement Creates
Markets for Goods and Services
in analyzing impact of
experts,
sales opportunities.
new
Point out that character of
new
variations
addi¬
children; (2) continuing decline j
working-force age groups, and (3) further increment in ^
over-65-age group. Describe factors governing migration and
its impact in various sections of the
country.
in
total
population
States
and
within
from
of
the
the
of
the
States
that
the
United
various
United
fact
the
on
areas
arises
people
are
markets and that figures on num¬
ber of people are needed as the
of the markets for
many
measure
products.
v.But
!-/://
-
the
changes.
has
sus
■
population
total
The Bureau of the CenV
devised
a
population
"clock" which is
display in the
lobby of the Commerce Building
in
on
Washington, D. C.
One set of
*Joint paper read by Mr. Brunsman at
the Winter Conference of the American
Marketing
Dec.
Association,
27,
1955.
-:
New
York
8
seconds
number
to
of
the
year
births
record
per
indicate
rate
in
is
of
that
the
that
United
24
every
the
by 1
,s.
a
h
birth
remain
We
at
would
The
and
in
death
from
i
tt* w
in
visual-
situation
rates
i
and
change
current
is
turns
sec¬
show
the
addition
total
of
the
by
over
to
the
1
of
its mark
ture
the
to
on
of
at
the
rate,
same
structure
population.
who
States
in
the
Most
of
arrive
now
the
smaller
even
younger
age
foreign-born
1 /10th
to
an
49
than
of
the
years
1 /5th
portion
But
groups.
accounted
1950
for
population
of age and for
of
the
40
more
population
Birth-Death Rate
Eut these
In
60
&
Co.
TorJ{ Stoc\> Exchange and other
Leading Stoc\ and Commodity Exchanges
on
have,
reducing
however,
5, N.
is apparent not
ture
Y.
in
in
future
to
the
middle
is
Tne
to
1930's,
increase
5
the
among
variations
of
t
General Fund
e
low of
the
the
incorporated
resources
holdings of Canadian stocks and (2) rein¬
vesting all net earnings at low tax cost.
be obtained from
or
COMPANY
Street
Florida,1
of
in-
example, in the period
1954, the population
States declined and four
seven
Recent
figures
are
available
from the Current Population Sur¬
vey
and
United
States
the
168
areas
areas
more.
of
lation change had
births
over
States
would
creases
been
of
excess
deaths, all except six
have
ranging
shown
only
in-
from
6
to
the
States
m0ve
people
do
not
from
of
stay
house
the
United
"put."
They
to
house, from
city to city, from county to county, and even from State to State,
in any area the number of movers
and migrants may be quite
high
without
affecting the total
lation of the
In
area.
-
popu-
some
standard
used in
the
of
areas
in the
and
the
total
of
metropolitan
1950 census.
In
account for
more than 97%
^population increase
be¬
tween April; 1950 and
April, 1955.
Thus, the standard metropolitan
the
areas
showed
million
13%,
But
rural
1950, 56% of the population of the
United States lived in these stand¬
ard metropolitan areas. But these
registered
increases
of
18%
or
If the sole factor in popu-
population changes in the
on
urban
the
an
whereas
standard
showed
increase of
inhabitants,
an
the
11V2
than
or more
outside
areas
metropolitan
increase
areas
of only
300,inhabitants, or about V2 of 1%
during this five-year period. Fur¬
thermore, the central cities within
000
the
standard
accounted
for
metropolitan
only
l/6th
areas
of
the
total increase within the standard
Continued
cases,
on
r
page
32
Keystone Fund
eystone
Custodian Funds
With the investment
|
RESERVES:
INCOME:
ofC an ad a, Ltd.
A
objectives of
Series B-l
iSeries B-2, B-3, B-4,
long-term
K-1,5-1 and 5-2;
CRGWTH:
fully managed Canadian
Investment
Company seeking
Series K~2, S~3, S~4
Prospectus from
are
your
Canadian Law*
local investment dealer
15
in¬
50
or
Company of Boston
Congress Street
Boston 9, JMaaa.
20%. This
by 1 mil¬
about
or
in
of
the
'30s.
The
the population
30
in¬
to
44
ANGELES
West Seventh Street
Specialists in
.of age, however, was more
sufficient to offset the de¬
in
the
15-to-29-year group.
Foreign Securities
Population Projections
We
have
revision of
recently
completed
a
projections of the
population of the United States to
years
our
was
greater
by
<jifon/wtdandfP. PBleicft/icedek
V2
dnc.
million than that indicated by the
highest of our four projections
yield
about
ago.
two and
The
estimates
new
of
one-half
are
Associate
Members
SECURITIES
American
Stock
Exchange
projections
30 Broad
population
ranging from 186 million to 193
million in 1965, and from 207 mil¬
lion to 228 million in 1975. These
projections
INVESTMENT
especially
valu-
Telephone
WHitehall
3-9200
Street, New York 4, N. Y.
Teletype
NY
,
0
un¬
-Tlie Keystone
\
;
CAPITAL GROWTH and
certain TAX BENEFITS .under
whereas the number of persons 65
and ever increased
by 15.9%.
yv ars
LOS
;
-
■
accounted
rates
prepared
Mass.
110
from
natural
64 years of age
increased 8.8% from 1950 to
1955,
three
LaSalle Street
in
';
tre¬
1965
and
1975.
These
revisions
have been made
necessary by the
fact that actual growth in the
past
■%
South
of
The groups 45 to
and industries of Canada by means of diversi¬
izo
in Nevada.
This decline reflects the low
birth
tiian
Canada, seeking long-term growth possibili¬
Broadway
or
however,
3%.
cline
61
ranged from
postwar
under
29 years of age declined
lion persons,
years
(1954) LIMITED
CHICAGO
to 31%
States
total
crease
YORK
18%>
California and 19%
for
%ths of
population increase in
this period. The
population 15 to
Canada
NEW
children
by 8 million,
increase
Boston 9,
rate
results
from 1950 to
most
from 1950 to 1955, the total
creased
Devonshire
States
in
For
crease.
as
number
111
1954
these
in
.
only a small portion of the variation in rate of population growth
decline
the
and
in
can
struc¬
age
the
period.
Thus, in 1955, there
nearly twice as many children
years
VANCE, SANDERS
actual
on
some variation
among
in birth and death rates. But
areas
there are young
people
20 to 24 years of
age. In the four
authorized investment dealers
since they
Urban-Rural Changes
num¬
impact
years.
example
mendous
der
may
good,
primarily
very
lation increases from 1950 to
in
deaths
only in the
number of birth
the
®
yzMmMZ%zzzzzzmmMmmzmzzzzzmzm2zmmzzMmzmMZz&
Prospectus
of
the 1950 population of each of the
States of Alabama, Missis-?
three
permitted
ber of babies but their
also be traced into the
dramatic
Private Wire System to Branch Offices,
Correspondents and
their connections in 90 Cities
throughout the United States
fied
similar manner, the
Population Mobility
among the very young than
among
the middle-aged and older
Members Jsjeu;
ties through: (1) investments in the
to
im¬
and
years.
There
have been very great fluctuations
in birth rates. The effect of
these
in
a
natural increase in tie
on
people.
A mutual investment
company
the
Spread
more1- persons to survive
middle
and
older
NEW YORK
in
improvements have had
effect
more
overseas.
on request
WALL STREET
that
public health have
resulted
in
dramatic reductions.in death rates.
They
42
in-
There is
.
Improvements in meaicine
A non-diversified mutual fund
Loeb, Rhoades
example, current
sippi, and Arkansas; and the total
based
are
and over.
iv/PfPanadaj
continuing
under 40 >12%.
are
of age. In 1950, the foreignborn represented less than
4% of
tire population 30 to 39
years of
and
and
are
rela¬
1950, but the heavy
immigrants
the
Carl M.
For
indicate
registrations of births and deaths,
years
the
of
-.Report
area.
estimates
a
year
the
years has left
the current age struc-
the
in the United
age
investing in Canada and
of the
are
States
to current
migration of earlier
current
population
however, migration results in sig-*
nificant changes in the
population
tremendous
a
able 'to estimate the population in these three States
current population of the United declined by from 2 to 6%. In this
States as a whole with a high de- same period in-migration ex¬
of precision. In fact, the ceeded out-migration by more
actual count in APril> 1950 was than 10% of the 1950 base popu¬
only l/20th of 1%.smaller than lation of Florida and of the three
our
estimate
based
on
births, western States of Arizona, Cali¬
deaths, and net migration from fornia, and Nevada, and the popu¬
We
it*
which
age
increase since
12
on
broad
of ago.
abroad;
poulation remains unchanged. Under this hypothetical
condition,
t' e population in each
age group
the
in¬
population
in
in the group over 65
years
figures
Migration from abroad has made
only a slight contribution to the
on
throw
groups;
show
years,
creases
equally
can
constant
rnv*W
year,
'
.
every 2 min¬
immigrant leaves
Thus,
light they
age
growing increase in children
increase
shared
United Stat's does not result from
such
ah hypothetical
situation,
City,
'•
tt
enters
person every
display
not
tionship of immigration
onds; and the dial at the top of
the
the
trr hn
to
is
hypothetical
a
rates
States.
minutes.
average,
creased
an
th
.
age groups.
ize
States
utes, and t' at
population
population
1950
which
million
immigrant
an
for
°ioS
10%
by all
'
Every 21 seconds another set of
lig :ts flashes to indicate a death.
Cther series of lights flash to in¬
dicate
the
young people of school age,
must dis-
allow
nf
fince
4
and
any^and
fact0rs
TnHwtc ?wC^r~
tinn
cfn-p
the
running
over
in
ing
to
actual
ptp
if
Tre
United
the
cur-
If
ifiR^nrv?
t
nJT' ri?re"
nflwml?3eiv ^f11111011'
this clock flashes every
on
of
rrn[
total
TA
lights
tne
n
ber of school and
pre-school
Interest in the statistics
belief, I
intervals
'
tions, rather than actual increase in populations of given area,
is dominant factor in
determining degree of added market potential. Expect U. S.
population, now at 166 million, to range ,V;
from 186-193 million in 1965 and 207 to 228 million
by 1975,
with projections indicating
(1) a substantial increase in num¬
;
from
our
able
changes in
terms, they
four-year period from 1950
continuing decline in some of the 1954,
lhusion you by
out-migration exceeded
reporting that we"'age groups in the
principal work- migration by more than 10%
cdjust the reading of the total at
of ycu has this
population
changes throughout the country, stress importance of attendant
obtain
we
reading cf t is dial.-
regular
Bureau
that
population figures
rent
Bureau of the Census
Census
view
impression
By HOWARD G. BRUNSMAN and HENRY S.
S1IRYOCK, Jr.*
;
States. Some of the
visitors
this display .have the
whb
31
1-515
/
The Commercial and Financial Chronicle
32
.
.
Thursday, January 19, 1950
.
(292)
becomes
Continued,
from page 31
into
How Population Movement Cieates
Services
Markets for Goods and
tude in the farm
metropolitan areas during the five
years,
even
though these cities
standard metropolitan
cities showed
than
an
million
2
The Bureau
increase of less
or
less
than 4%, whereas the suburbs of
these cities showed an increase of
Exact figures are not
but it is known that
crease
side
"In
non-farm
of
population
almost
the
and
same
growth
with
metropolitan areas
a
de¬
magni¬
sylvania, and New Jersey, to the
North
Central
States; from the
North Central States to the West,
Non-
moving out and others are mov¬
ing in, and it is a constant uphill
in¬
fight to maintain the membership
than
seaboard
eastern
the
in
the
Very
This
West.
Far
of
rates
low
will
it
or
lose
its
clientele.
1.1
million
migrants
followed these directions of move¬
non-
combination
of
total
A
the South.
from the West to
and
of an organization.
In a corre¬
metropolitan growth appear in the sponding manner, any marketing
western South, where cities are organization must inform the new¬
growing almost as rapidly as in comers of its product and services,
terior.
Far West,
the
characterized
has
other areas.
the
least
rapid
the 1950-to-1954
substantial
also
rural
in
areas
But
ment.
total of 900,000 per¬
a
bucked
sons
in
tide
the
and
moved
contrary directions.
In
period there was surveys reveal that in each year
about l/15th of the total popula¬
migration out of
the middle and tion moves to a different county.
"Generally
THOMAS A COMPANY
BUILDING
PITTSBURGH
19,
industrial
smaller
centers,
especially in the older eastern
mining and textile areas."
Migration may have a different
impact on various segments of the
population. As an example, migra¬
tion during the decade of the '40s
PA.
accounted for 2.5 million persons,
nearly lk of the 1950 popula¬
of California.
The relative
or
tion
importance of these migrants was
Municipal and Corporate
the
not
Securities
groups
than 1
were
for
same
all
the
of
age
the
State. More
million of the net migrants
within
adults
young
between
20
and accounted
for 2/5ths of the 1950 population
and 34 years of age
this
in
age
relative
The
group.
information
Similar
in
of
change
on
belief that the ad¬
erroneous
rooming
such
More than
during the
1950.
the
Both
in five
one
changed
persons
county
1949heads of
wives of this
year
young
period was obtained in the 1950 families and young
census, and it also showed that age also showed a high mobility,
8V4 million persons, or 1 person with about one in seven changing
in 18, changed county of residence
county of residence during the
during the year. For analytical year. The combined
group
of
purposes,
the
counties
of
the children and other relatives in
United States have been combined their early 20's showed the lowest
into 443 areas designated as State migration rate, with about 1 in
lion of these
different
mil¬
About 6%
Economic Areas.
16
changing county of residence
during the year.
...
The
migration
rate
declined
migrants moved to a
Economic
State
Area
But only about
during the year.
quite rapidly with age for all per¬
sons
and for persons in each re¬
of the State Economic Areas
180
showed
a net population increase
migration, and about 3 V2
million of the migrants between
lationship group.
Among persons
than 1 in
9 changed county of residence in
areas moved into these State Ecothe year ending in 1950, with the
namic Areas. In contrast, almost rate
declining with age to 1 in 40
3
million of the movers moved
among those 65 and over. One in
away from thesk areas of increase. 70 of the household heads or wives
Thus, a total of about 6J/2 million 65 years of age and older changed
migrants moved between State county of residence during the
Economic Areas to produce a net
year, and only about 1 in 20 of
due
to
redistribution of
Vz
million
those
areas
due
little
a
to
more
20
than
migration
to 24 years old more
the
in
persons
65
heads
or
than
with increases. Hence,
and older, other
wives, migrated
during the year.
Of
course,
children
with their
move
the
migration rate is
young
areas.
usually
parents and, since
highest for
parents, it is also highest
5, with 1 in 16
for children under
A
similar relationship is re¬ children changing county of resi¬
vantages of California appeal pri¬
marily to older folks but migra¬ vealed if we analyze the move¬ dence. The rate declines with age
tion accounted for only 126,000 ment of population among
the of child to 1 in 22 for children 14
persons, or 14% of all people 65 four major regions of the United to 17 years of age.
In fact, the
years of age and over in Cali¬ States in the year, April, 1949 to
Underwriters, Brokers and Distributors
of
Corporate and Municipal Securities
that
Origin Shift of Migrants
Company
a
movement
creased in
South.
postwar period,
as
compared with the prewar period.
Perhaps some types of migration
have increased. We have no early
WILLIAM M. McKELVY
WILSON A. SCOTT
FRANK II. "HUNTER
REGINALD R. CHURCH
G. PEARSON RHODES, JR.
WILLIAM S. McKELVY
GELSTON B. MORRIS, JR.
E. PAUL TUNNELL (LIMITED)
In general, this
ing this period.
mobility of the population has in¬
the
children
changed region of residence dur¬
We have the impression that the
was
More
movement
Northeast
to
the
to
and
West
been
Region,
is
of
consisting
quarters
age
to
move
provide
schools for
their children. But after this move
the
from
of pre-school
different
the
with
families
better play space and
specifically, the net
has
that
impression
total of 1.9 million persons
confirm
statistics
available
April, 1950. The 1950 cen?us shows
fornia in 1950.
A\cKelvy §
hotels,
of residence
residence during the one-year
on the average, 12 persons moved
importance of migration was con¬
between State Economic Areas for
siderably less for teen-agers where
each net change of 1 person in
it accounted for less than 3/10ths
of the 1950 population. There is the net population of the separate
an
of
houses, and similar quarters, and
those living as lodgers in private
State Economic Area Changes
Plains, principally to northern in¬
dustrial cities and to California,
non-metro¬
residents
for
households.
Great
the
and
South
western
the
ALCOA
Mississippi Basin.
the
metropolitan growth, on the other
hand, has been greater on the
England, New York, Penn¬
New
organi¬
Even
though I live in a
relatively stable area, families are
speaking, the most
politan growth occurring in areas rapid growth has occurred in re¬
with the most rapid metropolitan sort
areas, in smaller cities in the
growth. Both in the North and West and South, especially those
the
South, metropolitan growth with military or naval installa¬
tions, and in industrial centers
specializing in aircraft and other
military
production. The least
rapid rates are found in some of
represents the difference between
an increase of about 3
million in
cline
has
Elsewhere, however, the two have
shown
an
inverse
relationship,
the in¬
of less than Vs million out¬
standard
and
both metropolitan and
available,
even
Florida
nearly
|
28%.
population.
of the Census
changes from 1950 to Jan. 1, 1955:
rapid
or
zation.
prepared estimates of the cur¬ of
Mobility by Age Segments
fast-growing cities with slow- every year since 1948, the Bureau
population of the separate
of the Census has obtained infor¬
Available
statistics
show
that
growing countryside reflects the
standard metropolitan areas. The
mation in the Current Population
migration is not of equal impor¬
tendency for the cities of each
following is quoted from a recent area to
grow by migration from Survey on change in place of resi¬ tance for all segments of the pop¬
analysis by Rand-McNally and within the area. However, other dence of each person during the ulation. For persons in their early
Company relating to population studies have shown that during year preceding the survey. These 20's, the migration rate is highest
areas' total
9.6 million inhabitants,
active committees in each
rent
Thus, central
persons,
as one moves
not
the
accounted for close to %ths of
population in 1950.
rapid
more
westward from the Atlantic Coast
completed, families tend to stay
comprehensive statistics on migra¬
tion during short
periods of time.
However, the Bureau of the Cen¬
NEW
YORK
STOCK
EXCHANGE
AMERICAN
STOCK
PITTSBURGH
•
EXCHANGE
STOCK
has
sus
EXCHANGE
State
(ASSOCIATE)
UNION TRUST BUILDING
•
PITTSBURGH 19, PA.
Telephone—GRant 1-8700
tion
was
which
Pershing & Co. IFire System
of
1950
of
one-third
nearly
Rell Teletype PG 587
for many years.
censuses
census
on
of birth in the
country
decennial
The
information
collected
or
showed
popula¬
the
born outside the State in
it
was
higher, but the composition of this
group
of migrants has changed
drastically in the
1910, four out of
/
Retail
Wholesale
Brokers
Dealers
Distributors
the
the
migrants
United
years.
nine
born
in
another
tion
that
of
State
within
relative
in
are
various
more
other
likely
State
1518 Locust St.,
impor¬
in the
States
popula¬
has
than
to
be
from
from
Dealers and Brokers in
not
Public Uiility •
Langley-Howard, Inc.
LISTED
•
UNLISTED
•
STOCKS
•
BONDS
one
2
GATEWAY
CENTER, PITTSBURGH 22, PA.
other
Bell Teletype: PG
Wire
694
to
PAINE, WEBBER, JACKSON & CURTIS
The
Industrial
grass
in
Jersey and General Market Municipal Bonds
Guaranteed
Television Securities
and Leased
Line Stocks
Equipment Trust Obligations
,
Bank and Insurance Stocks
the
Mutual Funds Shares
field
nearly always looks
Furniture
movers
do
quite a business in return loads.
I'm sure that most of you share
my experience as a member of a
citizens association, of a profes¬
sional organization, or of a social
club. The membership committee
and
Electronic
greener.
Telephone: Express 1-3700
Direct
we
direction.
•.
abroad.
have discussed
only the net effect of migration
on
the total population of areas
and on the age composition of the
areas.
But migration is not all in
far,
Railroad
SECURITIES
an¬
New
Thus
Philadelphia 2, Pa.
the
changed significantly in the past
40 years. The outsiders nowadays
All Sponsored Securities
Authority Bonds
*
Thus, these figures
the
of outsiders
tance
Municipal Bonds
outside
born
were
In
of
whereas, in
1950, this proportion had fallen
to two in every nine. The remain¬
ing 7/9ths of this 1950 group were
indicate
Active Markets Maintained
40
every
Corporate Bonds and Stocks
States,
United States.
Underwriters
Incorporated
that
living in 1950. In
1910, this proportion was slightly
*
Rambo, Close & Kerner
\
is
one
of the most vital and most
Charles A. Taggart & Co.,
Member
Inc.
Philadelphia-Baltimore Stock Exchange
Investment Securities
1516
KIngsley 6-0900
Locust
Street, Philadelphia 2, Pa.
Teletype PH 677
New York Phone WHitehall 4-7000
Volume 183
Number 5460
....
The Commercial and Financial Chronicle
(293)
put until the children have
pleted their schooling.
com¬
proprietors
and
managers
also
show higher than average
migra¬
After the low migration rate for
persons 14 to 17 years old, the
tion
rate
in clerical
jumps
to
county* cf
1
in
residence
persons 18 and
19,
as
9
changing
among
all
these youths
leave home to attend
school, seek
a job, cr
get married. Thereafter,
rates, whereas low migration
rates
and
shown for male workers
are
occupations, operatives,
kindred workers.
The
fact
that
high
incomes showed a relatively high
migration rate is in line with the
the
migration
relationship to education and
to
cupation which
rate declines with
low of about 1 in 40 for
all persons 65 and over.
cussed.
Employment status as well as
family status affects migration.
Unemployed persons looking for
work
showed
greater
mobility
than employed workers. In
1950,
about 1 in 11 of the
unemployed
had changed
county of residence
during the year, as compared to
1
in
This
,
20 cf the
employed workers.
relationship
moved
to
search of
job and
a
had not located
of
the
new
and
many
different
a
arrivals
county
in
of them
some
Furthermore,
have
the
seniority
less
incomes
of
$6,000
substantially higher
was
for
for
rate
those
with
incomes
of
$2,500 to $3,000. But it is surpris¬
ing that even higher migration
rates
were
incomes
shown for persons with
of
$500
and
to
$1,000. This
between
migration
relationship
income
tends
age groups.
persons
job at the time
a
census.
more
than
migration
1949
to
have
exist within
reviewed
acteristics' of' the
As
Composition
previously
indicated,
be¬
tween April, 1949 and April, 1950,
there
was
a
gross
movement
char¬
the
same
county during
this period.
Thus, about 25 mil¬
lion persons, or 1 in
6, moved to
a
different house in this
one-year
In every year since
1948,
period.
the
group of intracounty movers
has been about twice as
numerous
the
as
In
some
jobs if
more
likely to lose their
reduction
a
occurs.
Education Increases Migration
The
statistics
from
the
1950
census
show
creases
with amount of education.
that
migration
in¬
They shewed that county of resi¬
dence changed during the year for
1
in
30
of
the
who
persons
completed less than five
had
years
of
elementary school, but for 1 in 11
of
the
college
statistics
25 and
are
over
graduates.
These
restricted to persons
to avoid inclusion of
still
attending school or
college. Younger adults have more
persons
formal
periods
than
more
house
in
a
ference
between
the
number
of
in-
and
out-migrants
may
be
small, the composition of an area
might change because of the dif¬
ferences
and
in
characteristics of
in-
out-migrants.
to
be
a
intercounty
the
movers
the
acquainted
character
example,
the* South
gained a total of 30,000 people
from the North Central Region,
this being the difference between
286,000 persons going south and
^
education,
are
more
able to
r
in
elusion
is
oppor¬
graduates
to
to
a
different county
improve
included 27,000
Thus,
same
the
North
non-
gained
In
a
similar manner,
appeal to
economic
The portion of
the
the
serves
city
not
changed.
losing
Italian
most
during the
of
less drastic
Illinois
showed
loss
net
a
of
But this loss is the result of
loss
of
migration
net
by
206,000 whites
which
a
As
was
gain of
a
through
practically
197,000
matter
of
non-
fact, the
loss of 9,000 for Illinois from
to
The
Butcher
of
MEMBERS
1500 WALNUT STREET
Winchester
Teletype
PH-4
then
,the
newly-
The
acknowledged leader in its field, Grinnell's historical
a
Furthermore, the act
is
the
The
market
for
continue
accounts
other
and
But
people, their furni¬
physical
high
a
for
and
portion
of
wearing
thin
lamps
the
draperies
When
these
new
MEMBERS
AMERICAN STOCK
a
house,
ket
NEW ENGLAND SECURITIES
so
for
In
CO., NEW YORK
a
too
are
in
Semi-annual
the
city
one.
and
mover
to
one
The
the
is in the
equipment and
new
Equipment Trust Certificates
as
old
City of Philadelphia
the
and
new
mar¬
new
conclusion, I would like
Philadelphia School District Bonds
as
to
of December SI,
INC.
Massachusetts
Bell System Teletype—BS
the population
ure
of
markets; there¬
are
142
Portland, Maine—Enterprise 2904
able
for distribution
Write for your copy
interested in
areas as a meas¬
of markets.
The
population
of
areas
stroud & company
i
changes, sometimes with consider¬
Boston—HUbbard 2-5500
Conn.;—Enterprise 6800
are
fore, marketeers
(2)
Hartford,
1955
emphasize:
Open-end Telephone Wire to New York
Providence, R. I.—Enterprise 2#4
Appraisals
and
Now available
31 Milk Street, Boston 9,
New York Telephone
COrtlandt 7-1202
PH 30
new
not suited to
are
(1) People
B.
MAGUIRE & CO.,
PA.
System Teletype
and
furnishings.
CORRESPONDENT
Bell
draperies
social
a
physical
position
new
PHILADELPHIA 2,
8-0900
out;
all
we
another
to
migration is
as
EXCHANGE (ASSOCIATE)
1529 Walnut Street
furnishings
new
1914
PHILADELPHIA-BALTIMORE STOCK EXCHANGE
LOcust
job is often accompanied
furnishings
J
thus,
for,
move
well
and
now
equipment. Furthermore,
better
a
become
rugs
And
market
and
into
we move
Company,
door;
faded
are
stockholders' equity.
of this
Boenning & Co.
into
wearing
are
facts
The
fit.
the
near
the
primarily interested in capital appreciation.
favorite chair is
the
of
stock
ESTABLISHED
tendency to overlook
our
the
record
and earnings
less than 8 times estimated 1955
earnings for those
the
laundry equipment
families moving
a
Dilution
recommend
revenues
ranges,
at at least different
quarters.
have
at
to
assets,
belong¬
refrigerators,
from
continuing increase of
accomplished with No
We
of
the
,
Telephone
Manufacturers vf Automatic Fire Protection Systems
ture,
by
UTILITY and INDUSTRIAL STOCKS
York
BArclay 7-4G41
GRINNELL CORPORATION
Entire
portation
a
MARKETS
New
to
available
the
Manchester, N. H.
PHILADELPHIA 2, PA.
.
Philadelphia Telephone
moving and transfer, for the trans¬
is
STREET, BOSTON 2, MASSACHUSETTS
Philadelphia-Baltimore Stock Exchange
Exchange (Associate)
American Stock
reflects
obvious
won't
York—CAnal 6-1613
1910
change.
that
Members oj New York and Boston Stock Exchanges
American block Exchange {,Associate)
New
these markets.
Sherrerd
&.
New York Stock Exchange
INCORPORATED
speed.
PHILADELPHIA
(3) The change in population of
areas
births
resulting
over
from
deaths
is
excess
of
relatively
New York
•
Pittsburgh
•
Allentown
ex¬
•
Lancaster
9
•
Scranton
•
the
of
occurring
City that have
of migration creates markets.
most
evident.
J.
is
Underivriters, Distributors, Dealers in
subject to similar but
are
market.
a
house
&
that
are
Migration changes the character
dingy.
KIDDER
among
,
FEnnypacker 5-2700
There
Ricans.
that
M.
migration
of
and
CORPORATE AND MUNICIPAL SECURITIES
becoming threadbare; that the rug
Investments
A.
the
serve
as
different
a
to
Puerto
the fact that
BOSTON
they
in
change
areas
immigrants,
recently
arrived
We
•
composition
Negroes from the South, and
new
PRIMARY
and
that
sec¬
often
arrivals.
of New York
comes
Milford
/
,
size
appealed successively to the Irish
freezers,
Lowell
even
though the size of the market has
group.
quite
newest
appeals
demand
Fall River
the
markets
forming
change,
marketing
perts keep abreast of changes in
city which offers
rent
occupants of such
the
a
racial
or
a
cheapest
ings.
50 CONGRESS
persons
may
and
9,000 in population due to migra¬
whites.
and
was
The
dif¬
markets
a
professional
Changed
tion becomes less fashionable
period from 1940 to 1950, the State
shown by workers in
workers
time that it
34,000 whites to the South.
offset
Sales
have
the years.
over
areas
that the highest migration rate is
occupations.
our
to the north
tion.
the fact
by
market
are
of
group of new arrivals.
con-
This general
confirmed
us
moving north.
But the
going south included 24,000
non-whites, whereas the movers
eco¬
their
that
of
areas
an
256,000
increased
likely to find it desir-
move
order
job
with
college
and
nomic position.
*
that
broaden
a
it is essential that
movements.
ESTABLISHED
its lower rentals
the
obvious
All
with
hometown
and
is
Thus, the specific
changing the size of
market.
at the
It
gross
/
Changing Markets
4,000 non-whites from the South
tunities
larger
are
longer dis¬
tances and those of non-movers.
migrant than those who finished
high school.
of much
period.
characteristics of
of
only grade school
or
tion due to migration is the result
differ¬
a
about intermediate between those
of persons .who move
ferent
As
whites.
likely
more
between
one-year
ket without
of
the
regions that
gained population because of mi¬
gration. Even though the net dif¬
graduate
is
characteristics
out-migrants.
one.
increase of less than 200,000 in the
group
on
in- and
Thus, migration may produce a
change in the character of a mar¬
the average,
than older adults; but, even with¬
in each age
group,
the college
education,
in
ences
change in population
from
migration
may
counties.
in five moved to
person
ent
between
movers
population
are
The
,
within
of
nearly 2 million persons among
regions in order to produce a net
(4)
resulting
(6) The character of the market
change because of differ¬
may
of 8V4 have a different impact on differ¬
(7) Markets for many goods and
changed ent portions of the market, on the
services are created by popula¬
county of residence during the various
age, income, and pother tion movement
or are
associated
year
ending in April, 1950. A significant groups.
' '<•"
with such movement.
group twice as large, or 16y2 mil-1
(5) The net change in popula¬
Because of all of these elements
lion, moved to a different house
Many
■
Net Migration
the
uniform; the volatile- factor in
population change is migration.
group
who
persons
these
doubtless results
from the fact that
with
men
or
The
oc¬
have just dis¬
we
We
million
with
men
age
a
migration represents a net loss of
15,000 males that was partly offset
by a net gain of 6,000 women.
33
Atlantic City
34
The Commercial and Financial Chronicle
(294)
Both Ups
Continued from jirst page
A
.
the "inverted saucer" seemed
all
easily to be carrying the day,
although there were a few
who appeared somewhat
skeptical of the plateau theory
and expressed some uneasi¬
rent
mercial
industries,
ported
"seasonal," but
this
of
or
forecasts
for
the
or
there
where
instances
volume
current
clearly to suggest that
makers do
not
expect this
but
output,
some
were
year
slackening of de¬
some
mand
cur¬
above
was
seem
last
banks
.
.
Thursday, January 19, 1956
could
dispose, likely to go forward uninter¬
their rupted
in the absence of
governments without undue further enlargement of out¬
loss, but, of course, only the standing credit?
The same
future
can
tell
def.nitely question arises about housing.
about* such
things.
In any It may be that a full continua¬
event, the question is defi¬ tion of the consumer boom
nitely posed: Can we safely this year can be attained only
permit consumer and real es¬ by endangering next year's
and Downs
other
branches of business also re¬
It
We See
'As
few
.
<
further
;
blocks
of
Of course, this is
a
particularly difficult time.
year to match the record out¬
;
of the year to interpret week- tate credit, particularly that business, or the next.
turn
of 1955.
Another 7.9
to-week changes in produc¬ part which comes from the
Several astute analysts
ness
lest
an
inverted
"V" million year was, however,
tion and sales volume.
The commercial banks, to continue have built their predictions of
make its appearance—which, hardly in the cards. The motor
holidays, vagaries of the indefinitely to expand? Opin¬ a continuation of a high rate
of course, in ordinary lan¬ year
would be very, very
ions generally appear divided
of business activity through¬
weather, and various other
on the subject.
guage means a boomlet and a good even if it fell very ap¬ factors
Ours is that out the year upon the basis of
give the studentyear.
.
preciably short of last year's trouble at this time. It seems we can not afford to do any
expectations of substantially
has so far record. The cutback in auto¬ safe
such thing.
In either case, increased
enough, though, to say
government expen¬
brought reports of a fairly mobile production may have that
nothing that has as yet though, we must come to the ditures
very slightly eased the pres¬
during the latter part
sharp decline in the output of
second question: Is the flow
come
to light suggests any
automobles. Inventories have sure upon the steel industry,
of consumer durables into the of this year.
They concede
substantial
or
significant
japparently climbed suffi¬ but capacity operations are alteration or amendment of hands of the rank and file some decline in what they Call
ciently to cause
manufac¬ apparently the order of the the
general tenor of the op-; iMiiimiiiiimmiiiiiiiiiiiiiiiiiiiiiiiiiHimmimiiiiHiiimiimiimiiimmmiiiiiu
turers
to
keep
production day in that branch of the
timistic forecasts made during
economy for a good while to
quite appreciably below last
the closing weeks of 1955.
come in any event.
year. There are those who call
It would, however, be vja,;
mistake to suppose that we
Established 1919
shall not have very real prob¬
bustlet.
The
'
■
new
year
1 Charles A. Par cells & Co. j
~
—
lems to; face in the
this year, or
Knapp
&
Webb
which
in
~
of
Orders Executed
on
N.A.S.D. Members
-'Vr y*
Detroit Stock
~
of
Governors
of
.
the
generation
of Investment
Banking
EXCHANGE
Exchange Listings
on
Request
is "a -lot
that it
STOCK
STOCK
EXCHANGE
639
Penobscot Building
DETROIT 26
;,
Bell
Telephone
System Teletype
WOodward 2-5625
DE 206
saying was that any¬
thing in the nature of a- ?7jiii2iiiiiiiiiiiiiiiiiiiii!iiiiiiiiiii4iiniiniiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiuFf
smug assumption that we had learned simple
tricks by
means
of which
would banish
we
could and
*
depressions and
economic
serious
ills
At any
lost
not
us
CHICAGO
3
ST.
STREET
314 No.
forget
struction of
Securities
of
105 W. ADAMS
to
sight
progresses. For
Public Utilities
Industrial & Corporate
rate, thpre are cer¬
Walter, Woody & Heimerdinger
tain facts which must not be
Water & Sewer Revenue Bonds
LOUIS 2
BROADWAY
as
one
the year
thing, let
the
that
MUNICIPAL BONDS
.
con¬
403
housing, the sale
and in ap¬
DIXIE TERMINAL
CINCINNATI 2
automobiles,
preciable degree the large
takings by consumers of vari¬
ous
other types of durable
have been supnorted,
largely stimulated, by
extraordinary if not unique
rates of growth in credit, and
goods
nay
•
that in substantial degree this
credit has
come directly or in¬
directly from the commercial
banks.
«Mtiticuncinif 0u;i
*Aew <j4dcfoeM
able
The banks have been
•
•
•
•
who wished to
that
of the
they, could borrow
freely (if at higher cost) from
-
We
are
now
in
our
new
location in the
the
120 E. Market Street
BUILDING
•
Federal
~
banks
Reserve
new
and
INDIANA
;
Progress
as
tory, largely by reason
fact
in
others
expand inven¬
well
as
Participating
these
accommodate
to
customers,
•
at
the
time
same
able to find buyers
Indianapolis 4, Indiana
substantial part
for
were
a very
of their hold¬
ings of government securities.
INDIANAPOLIS BOND and SHARE CORPORATION
Member Midwest Stock
Budgets and Outlays ' •*
There
Exchange
have
been
forecasts
•
—which
Telephone Melrose 2-4321
Teletype IP—298
EE
EXCHANGE
MIDWEST
Underwriters & Distributors
Bridge Revenue Bonds
•
Members
1920's^ What he seemed
ether
Toll Road Facilities
~
—
carried real dangers.
Municipal Obligations
=
for
of prescribed commission
be
to
66 Years
60%
DETROIT
smarter" than the leaders of
Stifel, Nicolaus & Co., Inc.
at
.
Reserve; System has
recently called attention to
the danger inherent in any
belief on the part
of this
the
DETROIT STOCK
Inquiries Invited
Federal
SINCE 1890
the
The Chairman ol the
come.
Board
=
*■*
mm
=
of events in the years
course
to
ATTENTION N.A.S.D. MEMBERS
=
year's accounts when they
finally closed or with the
are
Business
of
solved (or left'
are
do with the appearance
the
Real Estate is Everybody's
way
unsolved) will not have much"
to
inc.
they
course
that the
filled
this
—
we
of
year
a
hope
can
ndlll COMPANY
UNDERWRITING
•
DISTRIBUTING
balanced budget
and next.
event it may
be ful¬
In this
be that the com-T
51
N.
HIGH
ST.
COLUMBUS
15,
OHIO
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
-•
(295)
"the
"private sector," but
ex¬
Millions Pet.
press the belief that increased
outlays by government will
keep the pot boiling. Such a
belief does
not
consistent
public
to
to
Public
unless ways
Toledo Edison
neavierto a
heavier
rarrv
carry
compact
expenditures
the budget—whiph
outside ?rea> with
of
IS
than
a
a
deception.
mesne
means
This, of
"nnlitipnl
punucai
^
Clty of Toledo
Part of Ohio.
accounts
likely to- be hardly half the population
very
more
a populationof 564,000,
~.the northern
pnnrcio
DUOget—wnicn, ot course,
.
serves electricity
2>500 square mile
.
vour»
.year,
area.
heatinS
+1dQ
ana
4.
ln
is a11 electric,
course,
xne
farmer is "on the
prod."
+u
thef,e are 158 other
the
eolf
sell
of
OI
;
Total
The
over
but
nearly
with small amounts of
are
business.
gas
electric
Company
The
revenues
17% 'commercial,1 40%
j.
are
industrial
,
,
.,
i
-a
.
Xeast could
,
-i
,.
.
textile and glass fiber
the
River
water
for
and
from
Lake
.
.
.
But
there
are
b
*1GS' ^ampbe
lng
obvious
processors
f-\
The year
s
is
.
Soup 1S comPlet-
million
a
n o
facili-
plant at Napo-
leon, while other important food
dangers in all these things.
L
the
plant
on
Glass is also enlarging its
,m
mieht nave asm lar efgnt have a similar ei
fect.
of
expansion, and Owens-111 i
same
air!
way. stepped up fnrpicm aid,
toreign
too
TO ,
T-*
Campbell
are
i
j
m
-j
Soup,
«will
t
ahead, exception- Corn Products, General Mills and
ally good though it be, will
°
.
own
rate
capital,
of
be
return
on
the low
side,
prob-
lems.
gray_iron
casting
plant
in
years it remained at lower
and since
state law,
but much depends on the
formula
used in preparing the rate of re¬
turn. In
any event, there is no
indication
present
that
the
1952
levels,
has declined from
on
the estimated 1955
ings of $1.10 and
.
anee
and
,
,,
,
recently announced that
of
70c, the yield is 4.8%
Fie
iclcl, Richards 8c Co.
ocean-
abroad,
ESTABLISHED 1908
Lawrence
bring
substan-
a
commerce.
and°Toledo°"nd Lum^unty
citizens voted
tax
a
Underwriters and Distributors
levy to launch
port-development plans.
Of
The
area s Position as a transportation
center
advanced by the
was
Municipal & Corporate
com-
Securities
pletion Oct. 1 of the new Ohio
Turnpike, the most modern limited-access superhighway yet con-
.structed^as well as by completion
ot riGW J.oieao iiixpfcss
1556 Union Commerce
Airpofti
industrial
growth
in
the
area
Telephone PRospect
Bldg.
CINCINNATI 2, OHIO
1-2770
Telephone Main 1-3776
Teletype—CV 174
lion to $38 million—in the post-
,
1707 Union Central
Bldg.
CLEVELAND 14, OHIO
Teletype—CI 197 & CI
150
period.
war
Share earnings have
from
26c a
share in
increased
1945 to $1.08 recently, but most of
this gain
occurred before
1949
earnings reached 94c.
During vthis period plant ac¬
from $66 million
to $161 million, a
gain of 144%.
Net
generating
capability
was
raised from 222,000 kw. in 1946 to
510,000 kw. in 1955, an increase of
130%, although during the same
period peak demand increased less
count increased
DEALERS
SPECIALIZED—PROMPT
CLEARINGS
We clear for dealers in New York
-
p;ttek.,v„u
Pittsburgh
-
Chicago
-
Cleveland.
than
100%.
Loans and Securities De-
partment.
mo
u
s
PAT
Teletype: CV 240.
Off
demand
374,000 kw. in 1955, the
pany had excess generating
bility of nearly 37% over
Ioad-
a
U.
It
Dealers
Distributors
Municipal and Corporation Securities
capa¬
looks
compared with
as
of around
average
19%.
com¬
peak
S.
offhand> therefore> as though the
the
* had
company
somewhat
highly efficient
quarters
kwh.,
and
pounds
will
of
coal
reduce
consumption
The First Cleveland
per
of
17%.
Corporation
Member Midwest Stock
Exchange
average
from
National
1.05
kwh. to .87 pounds, a
per
reduction
these
pound
a
However,
Bay Shore
new
only about three-
use
of
system
expanded
overrapidly.
station will
OHIO'S LARGEST BANK
peak
a
of
utility
Address
With
Underwriters
Later
City E. 6th Building
CLEVELAND 14
perhaps
Telephone PR 1-1571
savings will be reflected in
Teletype CV 443
-
CV 444
share earnings. BTU per kwh. has
been
to
reduced from
10,820 for
Baxter,
16,700 in 1946
13,074 in 1955 and
estimated
an
1956.
President
Charles
Ide
recently
forecast
about $1
Williams
share
for 1956, even if all
earnings
But
&Co.
new
the
company's
construction
interest
credit
in
to
the
12
r
EL
PARSONS
&
r
CO., INC.
.
..
'V;
Underwriters,
months
ended
Sept. 30, 1955
approximated
22c
previous period.
Corporate And Municipal Securities
that,
with
credit
will
Chicago
probably
Columbus
Thus
It is understood
Detroit
the
material
Minneapolis
On
of
Philadelphia
than
Member
Midwest
Stock
Exchange
lower
improvement
other
the
hand,
$1.06
and the $1.02 in
Capitalization
1955
next
5-10c
was
as
over
it
reported
'■
i
:
v'
■
/
v
CORPORATE FINANCING
a
SPECIAL SITUATIONS
share.
is
a
of
follows:
1425 N. B. C. BLDG.
-
CLEVELAND 14, OHIO
1955.
lower
in
1952
1954.
as
-•/'
year—
a
$1 forecast would represent
the
■
construction
on
to
-1
com¬
share in the
excluding the interest credit,
Hartford
M
be
back
•
.
completion
the interest
year,
a
r»
;
135,000 kw. plant in October last
YORK
San Francisco
the
share
a
pared with only 7c
-'..'L
had
•
Distributors of
NEW
only
financing takes the form of debt.
Originators,
CLEVELAND
of
Sept.
25,
Phone:
TOwer
1-6550
Teletype:
CV 652
earn¬
and the
price-earnings ratio 13.2.
when
SECURITY
com¬
dividend rate
a
from
a
Defi-
con¬
Ohib's liberal
reported
as
earnings from 26c to 78c. In later
Nation^ mscnit. General Motors has^resulted in a gain of: about
1<20% in revenues—from $17 mil-
has built (and twice expanded)
./
liot be Without its
St.
tiaHncrease in foreign
one
largest industry units in Toledo,
,
QfpnnPH
from
Seaway should
JjrlgantlC road building could is spending $25 million
wnv
seem
sidering
Erie
port of call for the smaller
,
Libbey_0wens-Ford,
business,
operate in somewhat the
21.8
29.5
plants, etc.
supply
Standard Oil, Sun, Pure and Gulf.
,
else) would supply a
stimulus
to
31.0
,
,
g
v,
only 5.4% in the period
Sept. 30, 1955. This would
42.1
Based
in
the area further. Industrial development is taking place
along
the Maumee River including new
provide the funds tion, glass manufacturing, etc.- Oil
going
freighters
taking
them
from comPanies
in the area include Completion of the
without
anyone
.
to
a
is
payments to and 8% miscellaneous. The area" a factor in
the industrial
expannim
by government, at least is highly industrialized except for sion of the area,
if they come
directly or in- outlying farm territory.
-Toledo has been for years one
*
Major industries are automobile of the nation's great ports, imdirectly from the commercial and aut0
parts
production> oil portant to the coal, ore and grain
banks (which
theoretically at refining, steel and metal fabrica- tra(*e °f the Great Lakes, and a
t
conceivable that
6.8%
ended
pany expects to ask for a rate in¬
plant in To- by Standard & Poor's, has been crease.
led0 t0 make automatic
transmis- declining in recent years. In 1954
The stock has been
selling re¬
sions, employing about 2,500 peoit was only 6.0% but in two
years cently around 14 V2 compared with
pie initially. Republic Steel installed a powdered iron
jumped to 8.6%, probably ac¬ the
plant in
year's
range
of
Toledo a few years ago, and is ex- counting for the increase in share
it would establish
It is at>out 35% residential and rural, The plentiful
i.
Edison's
invested
on
48.7%
$142.4 100.0%
Toledo
communities pected to expand its operations
Revenues
an<*
company's
for
served,
$69.3
Stock___
Com. Stock Equity.
By OWEN ELY
Toledo Edison
Debt__
Preferred
Utility Securities
balanced
budget forecasts
are
found
•dieiouna
Long-Term
quite
appear
with
35
The Commercial and Financial Chronicle
36
.
.
Thursday, January 19, 1956
.
(296)
jrom page 3
enced.
These, generally stated, are the
major themes contributing to this
discussion of Government mort¬
A Sober Look at
Supported Mortgages
Some would
few.
been
about
regrets
more
many
there have
say
capital invested by the public
and loan associations
has come to be regarded in prac¬
tical effect as entitled to the same
the
in
savings
Repayment
Another
from
might
Reduction of Real Economic Costs
likely to
our
ly, the contribution that the con¬
tinued
and
of residential
the
decade
construction during
has
had
and relatively stable
nomic activity
In
this
them
on
the
level of
to
maintain
institutions,
four-fifths
and
taken
two
account
we
ernment
on
debt
about
small
on
rather directly
to
time
reduction of real costs and
<v!. <-•
- ■
with
•'
'■
confidence
great
that is
There is; good rea¬
amortization.
to
son
much
think,
however,; that
1-
4-family debt dis¬
to
appearing this
ments
and
large
these
of
in
made
are
the
of the sale of property.; "...
course
estimate
this
If
amortization,
proportion
repayments
of insta¬
is by repay¬
year
than
other
a
as
two-thirds of the $15 bil¬
as
of
lion
time may
source
of
t
currently being repaid apart from
ularity in the flow of investable
a
values
amount of debt
about the
indicate. To the extent that irreg¬
funds has been
I''
.
.feeling
any
capital
of
state
the
as
from
markets
suggest
thereby
four together
All
mized.
channels
mini¬
been
have
imperfections
un¬
greater likelihood that high
rising levels of real output
is
right,
even
ap¬
it
suggests
lenders have had
available
proximately
,
the
liability side of the
ledger.
The second important
pi here in considering the influ¬
these
tinuing costs to borrowers have
been reduced, speculative valua¬
tions and the costs of market
be¬
to
of capital
Estimates cannot be made
¥*
in other
vestment in mortgages or
likely
are
and
and bility in the past, this develop¬ several things: First, that the
by the Federal Gov¬
consumption in this segment of ment should improve the pros¬ large volume of funds that mort¬
either the asset or the
is
derwritten
in
that
find
all
of
and
safety
funds
of
liquidity
eco¬
other
many
be
ments
commit¬
Government
properties
occurred,
should
in
high
generally.
decade,
changes have
of
strength
widespread
volved
In making their
and to take them into account.
be reached from a consideration
The
of our first four themes is that
second reservation — the relation
need for short-term second mort¬
degree of liquidity as demand de¬ real costs of owning, borrowing,
between government credit com¬
gages. This conclusion leads to its
posits in commercial banks.
If building, and investing have been
mitments and
general economic
we
consider the more than $40 reduced—particularly to the bor¬ apparent corollary that the flow
policies—is still a matter on which
of funds to mortgage investors has
debate is common, and the posi¬ billion of conventional residential rowing home-owner, but also to been stabilized and
made more
to other
mortgage debt held by savings owners generally and
tion taken on it frequently de¬
predictable, and this, in turn, can
participants in the real estate be thought of as assuring a de¬
pends a good deal on the point of and loan associations, commercial market. Risk of loss to investors
view toward another issue, name¬ banks, and savings banks as in¬ has been reduced, initial and con¬ pendable source of funds for in¬
transactions abstained from.
their
change
to
come;! conscious
themes
At
families
some
are
they
decisions,
consideration
a
there
accommodations.
separately is that
borrowers'
repayment
of
their
mortgage debts has been regular¬
ized,- both
by the amortization
process
and by removal of: the
of
One of the conclusions
that
conclusion
be* reached
:
'
mobility, however,
incentives
with
Stabilization of Mortgage
of
fact
always be kept in mind.
must
all times
'
and eco¬
gage credit commitments
nomic stability.
be permitted a
mortgagor might
little latitude.
dential
The
the
mortgagee so fully protected,
by which the level of resi¬
building may be influ¬
tools
Continued
that much more
are
economy
sustainable.
pects for stability in the future.
gage
in
them
to
has
amortization
that
fact
The
change is
recent
years
comes
interre¬
primarily not from a stable and
ence
of the Government's com¬ that the Employment Act of 1946 lated however,
in complex and permitted borrowers to put their
finances in better order, substitut¬ predictable flow of funds arising
mitments concerning mortgage states the policy that the Federal sometimes seemingly inconsistent
ways, and the fact of interrelation ing almost automatic outlays for out of past decisions, but from a
credit on general economic sta¬ Government has a idirect respon¬
is at times a matter of some im¬
source that may be closely related
sibility to preserve and promote portance. When we consider some sporadic disbursements, and the
bility.
to current decisions about the con¬
conditions favorable to economic of these interrelations, the fact of importance the monthly payment
The first is that the safety and
reduction of real costs becomes as against capital value appears dition of real estate markets. Sec¬
liquidity of claims of the public
pn
financial institutions have been
themes
four
Our
are
stability at high and rising levels
economic
real
of
output.
Influ¬
somewhat less self-evident.
that
banks
raised,
and
is
insured
another
has
part
is
been
that
Government
gages
are
underwritten
taken to be
one
mort¬
of the
on
precise character
reference to the
credit
property or the precise
standing of the borrower
which
serve
the
of
for the
security
as
Reliance is put in the
obligation.
underwriting agencies —with
the
continuing
the
this
income
demand for mortgage loans to re¬
with which to make the payments,
place those paid off—may. depend
as
long as they have the
will
not
be
Such
values.
estate
be
of
affairs
state
a
real estate owners and
on
real
in
declines
about
concerned
greatly
flow
ket that
we
weakening
mar¬
have seen in times
of
on
And third, that
attributable/ to
funds
of
reduction
a
this
affecting net posi¬
have
little, might
very
of
repayments
nature, though
tions
past.
wouldeye
appreciable reduction in the
any
stability by minimizing the cumu¬
a
to
eye
real estate values.
would also contribute to economic
lative effects of
seeing
buyers
an
invest-
We need not question
able funds.
m
BANKERS BOND
government's ability or readi¬
to
ness
good
make
&
INCORPORATED
its under¬
on
takings to wonder whether or how
Securities
of
part
large
a
repayment—and of the
in¬
on
pressures
vestors to find outlets for
the
that
ond,
mortgage
suggests to some that mortgagors,
push supplied, perhaps, by
some
Municipal Bonds and Corporate
of
systems
rating
and
valuation
in owners' minds,
to have assumed
which
further underwritten by the Gov- encing
the level of residential
satisfaction has been expressed in
fernment. Part of this development building is regarded as one of the recent months is that FHA and
Is the the dollar amount of de¬ ways in which this policy can be VA mortgages are traded in the
highly integrated mortgage mar¬
effective
and
terms
on
posits in commercial and savings made
ket
we
now
have with litttle
matters
the
of
One
Member Midwest Stock
Exchange
LIFE BLDG.
1st FLOOR KENTUCKY HOME
much real costs over time will be
LOUISVILLE 2, KENTUCKY
less in this situation.
Local Industrial & Utility
Bell
Stocks
Trading Markets
-
.
and
STRADER, TAYLOR & CO., INC.
-
and
Teletype LS 186
.
r-
Long Distance 238
Local. Securities
little personal obser¬
a
"build¬
that
suggest
may
INVESTMENT
DEPARTMENT
ing down to standards" has taken
the
place of
earlier "building
an
certainly
has
given rise to
not
Mrs.
E.
McNAIR
P.
LEWIS
C.
JAMES M.
SFDEEY
ELINORE
CHARLES C.
W. BOHNERT<<< *
WILLARD
POWHATAN
-
ROBERT
>
OSCAR
C.
KIVG
CONWAY
M.
Jr.
JOHNSTON.
H.
ROBERT
FETTER
preference for in¬
a
Mrs.
GRAHAM
THOMAS
HECTOR
underwriting
TWX LY 77
Kentucky Municipal Bonds
per¬
down to the market." Government,
LYNCHBURG, VIRGINIA
5-2527
lending,
mortgage
vation
with
building
with
associated
people
haps from
-
to
come
conversations
in
hearings,
Retail Distribution
ID 39
that
complaints
The
light occasionally at Congressional
FUBYEAR
E.
WRIGHT
itial cost reduction possibly at the
expense
of
continuing
SCOTT, HORNER & MASON
uc
1956
1932
it
has
a
mighty
the practice and
authority for
established
struments,
VIRGINIA
CaMJyncA6u/ty
'Telephone 8-2821
higher continuing costs, will turn
in
out
•
and
W. VA.
Corporate LY 62 & 63
Corporate Stocks and Bonds
Municipal Bonds
Unlisted Securities
Municipal LY 82
the
long
the
investors,
—
Distributors
to
even
in
government,
builders,
To
may
is not yet
the
extent
that
—
Dealers
standards
of their
we
element of
should
with
the
some
face
a
Canal
Isle
inquiries in:
Corp.
Bank
Oil
Trust
(Assets)
Shipping
Co.
New Orleans Public Service Inc.
New Orleans Bank
(Preferred
South
Shore
Southdown
and
Common)
Oil
Sugars,
Inc.
Standard Fruit & Steamship Co.
(Preterred and Common)
con¬
na¬
become
SCHWEICKHARDT i COMPANY
MEMBERS
importance if
test
especially invite
your
Belle
con¬
mortgage undertak¬
may
We
,
Mississippi
borrowers
confuse experience with
struction
an
Mississippi Municipals
Stocks
tinuing costs attributable to
ture
Louisiana and
mort¬
clear.
ing, such experience
Underwriters
result
to
run
lower real costs to owners,
gage
N. CAR.
Underwriters
con¬
on
regarded as responsible for
be
to
v
George J. Bourg
Vincent B. D'Antoni
marketability of mortgage in¬
struction standards that may come
^
E. N. Anagnosti
Erwin R. Schweickhardt
a
handy recipient of blame. Wheth¬
er
LYNCHBURG. VA.
in
but
provided
cases
some
and
ultimate
lower
costs,
NEW ORLEANS
809
of stability
HIBERNIA
STOCK EXCHANGE
BUILDING
NEW ORLEANS 12, LA.
in residential real estate markets.
& Distributors
Already
been
the
of
view
has
that,
with
the
point
expressed
Teletype NO 344
Tulane 6461 & Tulane 8S12
Volume 183
Number 5460.
appreciable
tors':
influence
..
The Commercial and Financial
Chronicle
inves¬
on
new
construction and the
mobility
ownership required for reason¬
ably; smooth growth of
feelings of liquidity and in
Capital
.
Another point
,this
context
second
is
worth
that
developing
and
areas
regions,
reflect
v
.During this past
mortgages
creasing,
of
in
orable.
this
are
A
periods
FHA-insured
rise
in
explanation
second
of
mortgages
is
probably the purchase of houses
subject to pre-existing mortgages
Without
legal
any
of
mortgagor.
In such a case, the
seller may "take back a
second,"
this being one
way of expediting
the sale and
perhaps of
that
of
use
second
stronger in the
for
time
er
FHA
often
and
VA
to
cause
of
agencies, and
the
Government
underwritten
has
ten
have
from
areas
areas
of
flowed
of
has
made
to confidence
future,
a
borrow
time
on commer¬
be
However real
judge
the
price
were
and
real
or
unreal
to
marketability
to
time
to
and
seems
part
well
as
the
on
of
such
any
devel¬
Continued
on
page
38
I
it
fltwUecl hi
,
the
Among
ers
.,i
..
,.
MILWAUKEE
WISCONSIN
&
SECURITIES
SBojuh
Public Utility
Public
.»
Bank and
Industrial
Insurance
Utility
Industrial
Municipal \
Mutual Funds
Institutional
i
judgments
In other words, consum¬
have
cient
as
greatly in debt
have
MIDWEST
EXCHANGE
STOCK
E. MASON
ST., MILWAUKEE 2
Telephone llltoadwny tt-IIO 10
i
Bell System Tele. Connection—MI 488
I
il
Chicago Phone—STate 2-0933
wmmsmm
m
still had suffi¬
spend for other
been
and
before
225
current
unduly high relative to
are
MEMBERS:
knowledge.
as
income.
year.
effect
The
opment on friends and neighbors
sell—perhaps
buy another house, perhaps not
are
surmise, based in
surmises about the past
on
debt
early in the
want to
up
first mortgage or of
junior together—than
future
mortgage loans and the large sup¬
this called forth
to
owners
of
and
under less easy terms.
of
ownership—which appears to be
quite rapid now. From time to
time
situation, clearly, is
arise under the
to
many
purposes, so ir¬
Our judgements about
for
and,
ply of funds for construction that
the
turnover
first
again to
case
both
entirely
capital values to play.
also referred to mobility
continuous
can¬
capital
high-ratio loan—whether made
for
the
likely
more
to
interest.
today is that neither the debt nor
the current claims made by the
possible
have
This
values.
dispo¬
indifferent
be
the
estate.
gaining in
the
are
of
role
I
well
relevant.
which
large part
newly-attained
any
mortgagors
to
"walk
from their mortgages" to see
a
and
assume
cash to release the mortgage
not
to borrow for
—
the present.
Another is that —
especially
in this field — our
knowledge of the past is so poor
over¬
enough, and which
in
to
shortages and
increases
cost
and
scarcity
should not
you
materials
attributable
to
this
away
we
buy. In this
situation, capital values cqn be
disregarded only with difficulty. The seller who not only receives
no
cash from the buyer but is
called on to pay the mortgagee
of
One of the great difficulties in
assessing this question is that we
can
know with any great assur¬
ance only the past—including that
recent past that is thought of as
said and writ¬
summer
Nor need
sition
resulting debt is supportable has
been a subject of inquiry
from
had the apparent
was
in
re¬
a
Whether
real
on
to
consumer purposes as
general
As
willingness
future
the
markable extent
last
summer.
and
from
position that
be made for the
this
this has led
the
revival,
savings and loan
we
been,
look
scarcity than they might
otherwise have done. A good
can
and
and
may
have
mort¬
concentration
^
starts
during this past
you
readily
more
as
as
much
so
autumn.
that
undoubtedly meant that
funds
ready
availability 1 of
funds.
In this period,
consumers' feelings of well-being
have
developed
and
expanded,
financing of the loans
associations,
gages have attained among inves¬
tors
residential
banks
which
acceptability
period of active
a
—and others want to
mortgage
scarcity of mortgage funds about
Reduction of Imperfections in the
Capital Markets
broad
economic
put increasing strains
cial
rules
been
markets,
written under these commitments
many ether reasons.
The
instances
has
real estate markets and, despite
strong alternative investment
to
unusually large vol¬
winter, spring,
doubt for
no
of
an
the interim
per¬
close
underwriting
investors
some
general
a
ume
loans, in part be¬
of the
This
1955.
and
to
of the great¬
required
of
of
themselves in the second
supported
underwritten first mortgages than
in the case of
haps in part because
autumn
the middle of 1957—added
as
are
conventional,
the
willingness
late
of government
case
tends to breed forgetfulness.
For
VA-guaranteed ;a decade and a half we have been
and
mortgages—in
the
mortgages
and
commit
available
incentives
far has
so
many more good than
features.
No harm will be
bad
half of 1954 to take FHA and VA
getting a
higher price than otherwise. The
suggests
1954
The
change in the
inadequate information
examination
mortgages could hardly have been -in a period of rising personal in¬
the object of such a
rapid build¬ comes, high saving, and nominal
up
of forward commitments as unemployment
with
only
oc¬
took place between the summer casional and
transitory reversals.
becoming less fav¬
major
close
marketable instruments than
when mortgage terms
available to
•borrowers
overly
set of devices that
a
how successful they were.
A
hasty perusal of the Financial
Survey of Urban Housing sug¬
gests that where, in
1934, the
number, of properties with mort¬
gages greater' than the 1934 value"
was large, the proportion of mort¬
gages delinquent was also large.
on
done, however, if we bear in mind
a few points on which
familiarity
ments
to be in¬
seems
particularly
of
use
Stability
however, displayed
year,
have had a
sharp reminder of
the sensitivity of market
instru¬
to market influences. Less
noting in
the
and
Perhaps these questioning notes
we
V
Values
of
consequence, their decisions not
only about mortgage lending, but
also about investments in
other
•lines. .•
v•»
37
(297)
to
income
things to keep the economy sound.
Those who mention 1929 in this
Laird, Bissell & Meeds
DU
PONT
BUILDING
—
WILMINGTON
TELEPHONE
connection
OLYMPIA 8-4241
PRINCIPAL STOCK
STOCKS
—
&
BONDS
COMMODITY
—
COMMODITIES
OFFICE
120
—
of
is with various' government
—
BROAD
BROADWAY
STS.
BASLE,
—
W.
160
qualify the judgment.
44
WHITNEY
AVE., NEW HAVEN
TELEPHONE
SPRUCE
is
6,
CONN.
7-6851
all
Local Securities
a
Miller, Mgr.
to
he
Established 1865
Teletype
—
little
Few
—
Victor 2-7500
be
DISTRIBUTORS
UNDERWRITERS
as
DEALERS
was.
this
Corporate and Municipal Securities
Very little, I should
out
Telephone
KC 469
the
about
know
we
inquiry.
direct
KANSAS.CITY'S LARjGEST BANK
his
as
rises,
or
as ever
do
find
to
up
Furthermore
think.
Capital Funds Exceed 32 Million Dollars
of his
long
as
continues
risk
a
What
ly
we
are
like--
&
about it by
in
Active Markets
are
owners
Local Securities
likely to say, even to themselves,
Trading Dept.—Neill O'Connell, Mgr.
that
Municipal Bond Dept.—O. Chester Jones, Mgr.
Research
stays
proposition?
DELAWARE BANK STOCKS
(ommcrcejrust (onipair^
—
That is,
mortgagor
sound
including-
CHRISTIANA SECURITIES
Syndicate Dept.—Duncan
as
the market value
to
—
income
LISTED and UNLISTED SECURITIES
in
the
to
long
so
let's say fairly
comfortably — meet his mortgage
payments and other charges of
ownership, he cares little what
happens—presumably within lim¬
property.
Markets
that,
mortgagor can
its
Active
referred
have
I
proposition
*
The Bank Wire to Principal Cities
the
debt.
the
.
like
particularly to dis¬
possible influence of
capital values on the soundness of
BROADWAY
DIVISION
of these elements that
one
should
cuss
SWITZERLAND
DAY, STODDARD & WILLIAMS
The
I
Telephone—LOcust 7-6226
SALEM, N. J., OFFICE
ex as
about
knowledge
whether
see
PHILADELPHIA NATIONAL BANK BLDG.
CHESTNUT
Kansas
Oklahoma—T
of such other elements
as may affect developments.
Be¬
fore adopting this assumption it
may be well at least to identify
some
of the other elements and
Bell Teletype I\Y 1-124849
AND
—
mit neglect
them might
PHILADELPHIA OFFICE
Missouri
com¬
pensating aids, is such a strongly
determining influence as to per¬
Wilmington & State of Delaware Bank Stocks
YORK
Municipal Bonds
Specializing in
implied assumption in this
inquiry, I should think, is
that income, supported now as it
An
line
EXCHANGES
Christiana Securities Co.—Common & Preferred
NEW
General Market
then.
SPECIALISTS IN LOCAL SECURITIES
Telephone—BArclay 7-3500
the
changed in important ways since
MEMBERS NEW YORK STOCK EXCHANGE &
OTHER
quite properly re¬
economy
has
are
that
minded
99, DELAWARE
Dept.—Hugh C. Wallace
the
should
their
houses
go
market
below
value
the
of
out¬
standing balances of their mort¬
they will take action detri¬
gages,
LAIRD
COMPANY
and
MEMBERS:
Hew
York
Midwest
Stock
Stock
Exchange
Exchange
little
'
American
Chicago
Nemours
Exchange
the past for
Board
of
gors
Trade
Telephone
Bell
is
Del. Trust
fect
Bldg.
6-7741
Telephone to New York Office
Broadway-—Teleohone BOwIing Green 9-4900
,
We have
experience
out-of-date
that
the
face
values.
I
1930's to
There
mortgagors
to
of
do
satisfactory
took
the
Mead, Miller & Co.
of
judging how mortga¬
have behaved in fact.
measures
WL 486—Private
the
evidence, to be sure, from the
now
Telephone
*
6-7741
Teletype WL £9 &
New York Office 61
'
99, DELAWARE
BIdg.
in
basis
Stock
Commodity Exchange, Inc.
WILMINGTON
mental to the mortgagee.
ef¬
heroic
—
New
York
Stock
Exchange
Members
CHARLES & CHASE STREETS,
Telephones: Baltimore—LExington 9-0210
Bell
not
recall
evidence,
New York—Whitehall 3-4000
to
New York
in
very
however,
(Associate)
BALTIMORE 1, MD.
Carl M. Loeb, Rhoades &
any
Exchange
Exchange
System Teletype—BA 270
Direct Private Wire
declines
Stock
Philadelphia-Baltimore Stock
keep their houses in
large
—
American
Correspondent
Co.
-
The Commercial and Financial Chronicle
S3
.
.
Thursday, January 19, 1956
.
(298)
Continued,
play
from page 37
Supported Mortgages
selling slowly, or as over-valued,
or even as vacant.
But economic
who may have no
desire to move
perfectly able
to "keep up the payments" should
not be neglected. What the effect
would be I do not know, but I
who
be
may
comes?
We
owners'
in
worsening
wry
become so
have
general reactions.
the Bureau of the
Census has, reported, vacancies in
large
apartment
projects have
been quite high, perhaps as high
as in any defined segment of the
housing market except the dilapi¬
in¬ dated. This may mean little. But
ac¬ also
it may mean that people
This
the past decade
to account in a summary way for
the strength of housing demands
lander some such rubric as "high
rising
the
high degree of utilization of
we
to
In
reports
the
their present relative values.
There is no requirement, however,
tain
values decline
that all real estate
meaningful
uniformly to raise a
that the
problem.
kinds of houses
If
we
common
market for some
necessarily re¬
ing units will not
of ad¬
1948-49 and again in 1953
were
illustrate,
however,
may,
approach to the hypothesis
once the sense of tightness
diminishes in the market, dwell¬
one
that,
justments being made in the mar¬
ket.
extent significant for capital
is not at all clear.
The
an
point
From time to time
have had short glimpses
in the kind of buyers
and change
placed on changing tastes by the
housing stock.
dwelling and house owner¬
values
been
has
that
restraint
bought after debating apart¬
ship will now, in larger propor¬
tions, rent. Whether this would
result in a decline in the number
credit" that it is easy to lose sight
of
former
ment
mortgage
of
availability
in
who
those
to
years
targe amounts of liquid assets, and
leady
year,
similar
incomes,
consumer
and
enough on those oc¬
casions to stop these adjustments
before they became
serious in
themselves or gave rise to more
customed during
and
enough
quick
was
recovery
extensive
suggest it is not, on the face of
it, negligible.
Perhaps it is true then, that a
decline
in capital
values could
^ive rise to some debt problems
without any worsening in owners'
income positions. But is this not
self-contradictory? How would
cuch a decline take place without
Very old houses, two-
weak.
that
in the
who
mo¬
might
agree
arise
loss, perhaps
against the former
Something will
problem is limited within
of changing relative
values without a general decline
49
perhaps,
could,
problem
start
by
accounts,
?
*
N
•
second largest
*
•
•
*Z-
/
/a
• •
»»
market.
policy
are
own
debtors,
and even
defaulting
mortgagors,
We
need
not
these
of
Are
obvious
there
policies
government
can
adopt
sure
that its influence
Nor
for
need
problems
arise
all
we
assume
because
the
and
be
will
be
LOS ANGELES
647 South Spring
Street
Teletype LA 533
Street
Teletype SF885
influence the
or
in
place. In any case, we are in a nition of new price levels; but a
position to return to government decision to sell at going prices as
commitments
credit
questions
some
to
how
about
these develop rather than hold for
raise
they
and
a
by
hypothetical
these
possible
market
fluence
develop¬
improvement
could
free
What
the
to
the
that
take
place
or
owners
It
values
—
mortgagees
In
become
many
will
of
cases,
the
of
owners
and
eventually may
against the-former
situation
in
we
will
the
may
be
somewhat
of
considering
or
to rent
them, and if to
other
so
on
which
is
we
York
American
Exchange
LET'S LOOK AT THE RECORD
Our "Annual Review of Life, Fire and
FRANCISCO
MONTGOMERY
4
LOS
STREET
YORK
WALL
comparing old and new houses
carefully. Perhaps one of
developments would be that
at
least
in
some
some
price
could
not
being set
BEVERLY
275
NORTH
5
SAN
be
built
the
■
■
■
Casualty Insur-
1079
Direct Private
CORRESPONDENT
<S2> SSSSE)
<2£i2)<3S5S>
1955
vs.
1954.
upon request
14
13
HAYWARD
DRIVE
HONOLULU, T. H.
for
WALTER C. COREY CO.
55 NORTH FIRST STREET
HILLS
CANON
JOSE
;
B
Building • SAN; FRANCISCO • California
Telephone YUkon 6-2332
Wires
MANILA,
Russ
STREET
OFFICES
P. I.
<SSE) (£^> (SSE)
markets
ranges,
in
VAN NUYS BUILDING
STREET
pres¬
more
Exchange
ANGELES
The
great, and a reasonable expec?
might be that consumers
Stock Exchange
'
NEW
40
70 issues,
Copy available
Francisco
are
for housing at going prices
current credit terms is not
•
Angeles Stock
we
little different
have experienced
on
1955" shows the individual market per¬
Stocks
formance of
Los
Exchange
(Associate)
construc¬
a
few years.
-
San
Stock
SAN
460
Stock
new
and
for
ir»
houses
new
the
market
-
prices
for old
property owners and mortgagees they would insure or guarantee houses that consumers judged to
similarly situated except for the additional mortgages. In pursu¬ meet their needs just as well. 1
fact that the mortgages are not ance of the first objective—aiding
shall not try to spell out here how
government underwritten.
In price adjustment—they might de¬
such things as carrying charges,
most cases, with lower loan-ratios, cide to be restrictive, again with
and prices
the owners will bear any loss, and price effects on the whole mar¬ alternative rents,
this loss will generally be realized ket. Or, in pursuance of the sec¬ strictly defined have to be taken*
MEMBERS
New
the
tation
the
cisions about the terms
what
in the past
are
With, and perhaps in advance
of, decisions on these matters the
agencies would have to make de¬
note that
case-
The kind of market
and
vacant
claims
Here
financing of
tion?
sure
rent, at what rents.
very
kind, what
appropriate policy be to?
ward
about whether to keep properties
the
are
In a situation of this
jective might call for price main¬
tenance and a long holding period,
suffer little
the agencies
Secondary Offerings
Industrial Brokers
devel¬
of
arise
to
would
from
VA-guarant^ed. loans, with constant
decisions to be made
ance
Underwriters
position
a
in defining
stability that is to be sought.
selves.
To achieve the second ob¬
conflicts
that
such
likely
might also affect
subsequent
foreclosure
ex¬
perience of the agencies them¬
appreciable
in
debt.
and by
is
the
expected to in¬
prices received by
the
Stabilize?
extent
of
in
be
other mortgagors,
ments.
SUTRO o CO.
Investment Dealers and Brokers
course
toward
Since 1858
Distributors of Primary and
government
a
wmmmmmammm
\ GSSE) <5SS9 GSSS <SsS£> <SS2) GSSSE) (2S2) (£52) <2sS> (2S5E) GSS29 (SS9 (2sS9 (£SS> G5S2) <Ss2)
any
particular market
would face very similar problems.
opments
York and Division Offices
Private wires to New
that
hold enough properties
sell
to
Angeles Stock Exchange
Exchange (Associate)
SAN FRANCISCO
is
debt that found itself in
American Stock
300 Montgomery
is
or
anticipate will
it
DISTRIBUTORS
Los
Exchange
Midwest Stock Exchange
any
adopted
agencies that have to cope with
the situation. Any private instil
tution or group with a stake in
both
ownership
and
mortgage
Members:
San Francisco Stock
is
markets
may
we
First California Company
UNDERWRITERS AND
that
assume
policies
to
for owners with clear title.
degree of tightness of supply
influence
the
extent
and
different
°
refinanced
As long as the difficulties are
stability in the market?
sequence of any declines we may We may note that two main ob¬ minor, a skillful—perhaps intui¬
experience. Worth thinking about, jectives of policy might be set up: tive—dealing with day to day
too, is consumers' attitudes toward First, to aid in an adjustment of developments
might
work
out
their future incomes as well as relative values that is clearly in very well.
Even a major diffi¬
their current incomes. Does the process so as to achieve a sus¬ culty might become minor under
prospect of stability of income tainable structure of values; and such an approach. The fact still
rather than continued rise affect second, to minimize mortgage de¬ remains, however,
at
least for
consumers', decisions about capi¬ faults. Other objectives migct also analytical purposes, that if mar¬
tal values and debt?
be set up, such as minimizing hab¬ ket forces give rise to appreciable
itable vacancies, but for the pres¬ changes in relative prices (leaving
Perhaps we have gone too far
aside the problems of a general
afield into fascinating but frus¬ ent, let us consider this pair.
To achieve the first objective decline in prices), the extent and
trating
speculation about how
real estate adj ustments might take might well call for prompt recog¬ composition of the mortgage debt
the
•
for
other
for
me-—to estimate the outcome.
it sufficient to think that
will
whole thing is small,
government's
disposal
policies
likely to be important for its
find
the
agen¬
preciable,
preferences,
and many models
could be constructed—though not
I
If the
government
makes
its own
accounts.
If it is larger, and if
the government's holdings are ap¬
general
a
the
by
little difference except to
Adjustments in prices presumably
cause
buyers to reconsider their
owners.
£i*.
depend on
whole
one
the
decline,
it
would not necessarily end there.
without
properties
America's
of
cies.
be the case, as it was in 1948and in 1953.
But although a
may
have
\fvA
proportion
to be
the
13,249,000...
large
a
mortgages.
owner.
now
become insurers and guarantors of
continued unchanged through the
whole
period of any difficulty.
insured
N
claim
lowed
will
population of
a
the soundness
debt—they might decide to
liberal, and in this case also
have price effects and perhaps
development and the policies fol¬
values, is it not bound
relatively unimportant? This
loss.
growing
with
ond—maintaining
of the
be
in property
properties mortgaged with FHA-
serve a
least
uniformly
declines
• • •
buyer
a
at
both the magnitude of the
confines
in
off ff ICGS
sale to
a
himself,
the
If the
To
Our
of
find
temporarily, on a sound footing.
some cases, however, the hold¬
er of a second mortgage will bear
mortgagors.
the
course
will
In
might influence or be influenced
that a problem
this fashion, we
fcedroom houses, badly-located have agreed to consider the pos¬
houses were variously reported as sibility that capital values may
Was
debt,
the
bility of ownership may help set
the stage, and that neither the
role nor the stage-setter requires
ill-will or bad faith on the part of
A Sobei Look at
and
of
the
determining
in
role
a
soundness
Teletype SF 573
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(299)
account of in
for
this
In
takincr
tivps
interpreting "price" Economic
estate
purpose
srrm,nt
fhp
Of
should the
nf
tha
hv
Art
in*?
whatpwriripan?
IpvpIc
nousebuild-
and
employment?
regard
further
housing
the
and
additions
supply
value
,
and
others
should
^
as
to
will
-
emphasis to be given to the
several objectives
of stabilization.
Do
may
have
I
can,
beTtVrTbuTed toThP
hope,
thatTS
fact
reassuring aspects of Government
mortgage commitments have
heen
mlSv
broughtto
casions
and
are
reasonahlv
oc
well
sSithatextendeddiscus
known so uiat
Known,
extended discusgion is not
necessary here. Fur¬
thermore, many administrators
hnd others are
by now skilled in
the details of these
aspects, and
can
answer most questions
about
them.
/
I
i
hope
have
indicated
that
concerning
are
other
aspects, there
questions that at least I can-
hot
answer
including,
in
the
measure,
question
these other aspects even
large
whether
exist. On
the
assumption, however, that the
possible problems raised here are
neither frivolous nor based on
too
great
ignorance,
try to
sum
up
I shall like to
by suggesting some
questions which,
as
a
research
analyst, speaking I hope, to a research-minded audience, I am inclined
to
help
understand.
us
think
research
might
°
the
at
are
compete
for
owner-occupied
apartments and
From market to
houses?
answer
be
may
dif-
least in degree (and
questions in which mat-
of
degree count);., on the
answer may depend whether, and
with what weight, we should pay
attention to rents and vacancies,
or to house prices and credit
rangements in assessing the
in
whieh
each
ar"
ways
building;;and
new
standing stock o£ houses
the
react
on
other.
are
relatively
houses
new
faring in the market relative to
others? Is there any difference between
the
houses
new
built
to
Government standards and those
built otherwise? Is there any difference
between
the two
what
sellers
think of
groups
of
their
as
standings in
is
out-
period is smaller
any
than the amount of loans made,
How is it being repaid?
By whom?
Under what circumstances? InvesllgctllUil
tigation Ui these M UCOHUiia might
of llicac questions
throw light on developments both
°
iniuut
^
.
real
estate
capital markets.
example,
markets
..
and
in
We do not know,
of the
how .much
current
ten,
of
ment of other kinds, notably that
amount
WX
held
XAVXUVA
f
I
gross repayment
Nation and how
v
_
is
amor-
is repay-
ninno
_
sa*e °f
much
TVm
a mortgaged house,
guesses, however, about the dis- V i think
this audience will realtribution of this debt among housize that interest in such
questions
ing markets or types of property, is
not evidence
solely of a mania
and about the values of the
mort- for
classification. Admittedly ingaged properties or how prices of
adequate studies of the subject
these
properties
are
changing, suggest that, on the
whole, the
of
a
level by the
Would investors'
am0Unt.
sions * be!'
and
smaller
investors,
to
be:
"The
unchanged,
they feel the
loss
types
haps
even
we
would
foresee
not be
such
extent
in
of
turn
a
doubt, though, that
of
knowledge.
I
hope
it
our
has
clear
study, do not
of
of
questions
be
think
to
very
in
a
Distributors
ones.
and
and
Exchange
Exchange
Unlisted Securities
Midwest
Municipal Bonds
to do
discusCom-
to me tnat
*s
FOURTH AND
Bell
1st
Nat'I
Alton,
Teletypes (Trading Dept.) SL 151 & SL 152
(Municipal Dept.) SL 571
Bank
Bide.
7!)07
Illinois
Forsyth
Clayton,
Blvd.
Commercial
Missouri
Belleville,
Bldg.
Illinois
Rose Bldg.
Ilarrisburg, Illinois
Private Wire
to
Clark, Dodge
&
Co., New York
attention
some
necessary
_
any
OLIVE
SAINT LOUIS
Stabil-
will
uiake
Stock
Exchange
others
Economic
*° suc"
Co.
American Stock
Listed and
bein
in
a
a
conscien-
tlous assessment of whab
°.nce, a_m.°^f^
is
at
sPec^^ subject. One thought, for
Texas National Corp.
example, that comes to mind as I
J™k back on the: developmentof
this paper is that the title
of the
Retail is Oar Outlet
most of our minds a subtitle
along
the lines: "The Role of FHA and
VA."
Yet if the first major devel¬
opment should be lower levels of
transfer activity, accompanied by
lower
levels
of
debt
GUS
NELSON
*
repayment
EDWARD H. KELLER
SAN ANTONIO 5, TEXAS
Telephone CApitol 7-3401
Ball
Teletype SA 40
MOUNTAIN STATES SECURITIES
Underwriters,
Distributors and
Dealers in listed
UNDERWRITERS
and unlisted
BROKERS
Corporate and
DISTRIBUTORS
~
Municipal Securities
CORPORATE
and
TRADE WITH
MUNICIPAL
SECURITIES
Mountain
Salt Lake
City
states
Denver
(Corporation
INVESTMENT
ACOMA
460
DENVER
SALT LAKE CITY
FOSTER & MARSHALL
Investment Securities
ties
ecura
Las Vegas
CLUB
•
BUILDING
LAS VEGAS
BANKERS
2-8688
DENVER
•
better
intelligently
large
&
2,
COL9.
GRAND JUNCTION
MEMBERS:
New
Stock Exchange
820
York
Stock
SECOND
Portland
•
Exchange, American
(Associate), Chicago Board of Trade
AVENUE
Teletype SE. 482-673
Spokane
SEATTLE
4
Telephone MU. 1900
•
Eucene
•
Olympia
un-
ques-
Members
TRANSIT TOWER
in
better
New York Stock
,
When 1 Trading
a
(Associate)
anything
have
t°
develop
would
we
position
under
Perhaps'I
thinking that,
that, to
firiri
fore we will find niirsplvos
ourselves
P°sltl0n
tions
sug-
Underwriters and
some evidence
that nets and grosses
alike.
txro
could
we
been
derstanding of these modest
Newhard, Cook
composition of their
are
time.
same
^ " ,My Questions have been directed primarily at elements of
developments that could conceivab*y &ive rise to instability, for it
fnro
have
some
deci-
attempt
subject of this
"Government Credit
seems
if
that
assume
is available
sion,
for
way
investments?
no
a
ac-
know about real
would
freedom to
to conclude
that the net
these
that
processes
any broad deterioration of real about the
stood, at least until
Do
I
present
here, and the topics I have
gested for
we
markets and how they
shall be excused for
been
to
economic
financed, and what we can guess
might be further development of
the questions I have tried to raise
position
would not change, there would be
no reason for changes in the
gross.
Such temptations should be with-
behave
of what little
estate
should be
we
in
The questions arise naturally, at least to one observer, out
<
.
attributable
decline
tivity.
Assur-
events.
markets
general
position to
a
able to foresee it with
unchanged terms? It
on
tempting
estate
Liquidity." Perwith more knowledge
portfolios, would they make their
smaUer llow of
mortgage funds
is
to
or
if investors made
to change the
the
funds
of Financial
The amount of transfer
activity to
be financed would be
smaller, but
even
of
Influence
ances
adjust from time to time the bai¬
ancefeof their portfolios
among
different
flows
subtitle with a more
appropriate focus might turn out
a
presumably continue
higher
a
mitments
debt
of the amount that is
Government underwritthe
at
Clearly the
being repaid.
in
level,
effect
the
directly
and
f0ii0s would
with
for
major types of holders
cjr
—
have only the most
rudimentary
the
tvould'deCline^but°mortg^geport-
attitudes
toward
their
debts and toward the
market?,.
residential
majui
be
The flow of funds to mort-
sellers'
in
lUC
the
fers?
them
mortgage
The rise
pay-
decline in repayments
arising out
of a decline in real estate trans-
like
estimates, good within
tolerable limits, of the amount of
out¬
amortization
would
costs?, Do any such
differences influence owners' and
.
debt
of
ments below the contractual
what
acquisition
-
mortgage
reduction
available
-
•
.
How
.
We have
standing,
old
with
or
ferent,
ters
houses
with
rented
these
aside the possibility of a rise in
delinquencies and a consequent
■
new
houses
of
Knowledge
Any disturbing tone that these
remarks
the
proportion
Of the aebt being repaid by amortization has been declining. If this
how
and other debts.
market
Desirability
know
and
consideration buyers
require careful
to
liquid assets of debtors
moving relative to mortgage
are
a
of the
be
f
tor
comes
are
difference, but intel¬
day-to-day
management
ligent
on
that the
averaged,
changing relative to
important
classes
of
important
ot
properties
in
important market
areas, as well as to know how in¬
it
already facing?
Again, degree anld circumstances
will make
and
average,
are
d ht
debts
the
problems
to
might
values
it
complicating
debt
mar-
such as sales of houses, has been
understanding rising rather rapidly.
Leaving
be
may
addition
then,
in<T?m.(;
v
Or
statistics
An
fi^ kouse sales at high
°
in
debt is becoming younger
real
local
it
that
anH
in
' not offset contrary developments is so, the proportion of the debt
in others, regardless of the fact being repaid for other reasons,
makp
availah^p
has
affecting
place
kets> and in significant respects,
developments in some markets do
nhkn
Fmninvmpnt
Pftvprnrnpnt
cial efforts
changes
take
39
.■
40
The Commercial and Financial Chronicle
(300)
Business and Finance
Continued
Speaks After the Turn of the Year
MORE STATEMENTS
policies in keeping with its
have
the
into
growing,
now
issue,
un-hobbled economy has ever known.
Federal
anced
publication in today's
for mechanical reasons, could not
or,
The
Our
the American people in the
about by the confidence of
their
initiative
own
full limit of their abilities
lives of their loved
and
the
It is just the
able
income is
population still suffering
is
parently
unfailing
stream of
new
We
have
expanding rapidly.
spring
ideas and
opportunities and
set
to
research
in
records
summer
in history.
million.
every
wage earners
has
dollar
been
new
for
of
the
previous several
How
of
living"
of
deflation
all Americans
ahead and work
go
of
and
■
prudence, this nation will continue to be
nation
a
in
of
"haves"
enjoying
business, production, and
standards
of
new
even more
peaks of prosperity
and constantly higher
wages
living—for all the people.
HERBERT
1954.
after tax.
spite indications that the number of
non-farm housing starts will
decline
about
1,300,000
from
The
increase
will
centration
and
from
greater
bigger and
on
to
be
more
ex-
Although building of almost
kind has gone forward at
"boom" pace since
moth
Herbert
is
eliminated
the
accumulated
World
great
an
from
backlog
the
so-called
a
1946, the mam¬
assuring every Ameri¬
adequate standard of shelter
far
during
every
completed.
of
housing
depression
of
We
have
which
1930s
II, but new demands arise as the country
Our rising population, the tendency for
people
to live longer, the movement of families
from one section
grows.
of
the
country to another
buildings each
ing
better
year.
living
all
create
requirements
In addition, more people
conditions;
neighborhood improvement
and
are
slum
are
a
for
seek¬
clearance
becoming
and
sociological
and economic necessity.
As
important
as
new
stock
must be kept in good
habitable
and
this
is
a
for
Our existing building
builders
never
added each year, the need for
re¬
condition if it is to remain
task
material manufacturers that is
are
and
done.
and
As
building
new
units
repairs, enlargements,
STANLEY C. ALLYN
such
should
reaches
1956.
basis
1955
the
points
The
figure
income
1954
to
is
sales. Four
passed $200,000,000. From there in another four
years, we have gone to the $300,000,000 mark. In short, it took us 63
years to reach the first $100,000,000;
four years for the second and four
reached
take
is
3.24%
was
international
new
demand for
schools,
more
and
sewers
up
would
we
new
also
new
sales
of
our
1955
overseas
compares
with overseas
approximately $15,000,000
the
which
Our 1955 record re¬
good
existed
in
business
conditions
Europe
and other
NCR overseas fac¬
achieved record .production. Two additional fac¬
are under construction, one in Japan and one in
parts of the overseas field in
tories
tories
1955.
over¬
one
and
one-
New models and new
tor
sales record
the
in
and
research
healthy
result in
a
for
Contracts
cured.
population which will result in
products were an important fac¬
for the year. Expenditures for
history of
capital improvements were the largest in the
the company, and
our
of
by
before the war.
flects
Stanley G. Allyn
there is every reason to believe that 1956 will be another
for
is
Brazil.
the
as
third years' income.
facilities
one-third
represented
than
This
000.
resulting
for the country as a whole
medical
for the third.
sales which will total over $100,000,-
better
expect sales of life
continues at the equivalent of
only about
improved
later, in 1951, we
volume
hospitals,
slack
any
highs, particularly
all life insurance protection
year
$100,000,000 in
years
yet
rate
is generally expected, personal income
as
to
will top 1954 by more than
ten
over
not
tax
rate
be great
works,
than
highs,
insurance to reach
Thanks
Incoming
15%.
new record. Total sales for 1955
approach $300,000,000. Less than
years
ago,
in 1947, we first
domestic and overseas.
its best year, both for
orders and shipments
More
no
equipment,
water
as
more
If,
new
is completing
Company
Register
Cash
National
The
will
slight slowing down in the automobile and hous¬
a
Company
President, The National Cash Register
;
plants
ing fields.
will be greater in 1956.
two
some
into production in 1956 and will
increase in employment.
mechanization
toward
trend
defense items have been se¬
new
will go
These
The
low rate of deaths.
and
automation in
impor¬
the business office and the retail store is the most
An
uncertain
spite
of
interest
the
is
area
credit
rates
are
the
level
restraint
the
on
of
of
low
interest
monetary
side
for
rates.
In
authorities,
long-term
high
tant factor underlying
panies like to buy.
to
the
There has been much publicity
tightness of
know
of
no
and
money
important
its
financing
"high" cost, but
by
we
conservatively
a
capitalized and profitably operated firm which has been
blocked by the interest cost of money.
One vital
this is that with
rate at 52%, the
net
cost
1%%
of
and
3V2%
at
5%
it
is
less
a
corporation is less
than
2V2%,
yery
than
low
net
costs indeed.
companies in 1956
where the
into
so-called
nature
to
flow
into
of
term
loans
to
long-term bank
bond issues and
Summarizing,
with
a
we
loans.
a
mortgages,
year
ago
Smaller
in
amounts
Last
mortality and
a
year
slight improvement before in¬
earnings.
every
premiums,
higher
100 employed people, today there are
(1955)
year
office
use
the sale of labor saving machinery
amounted
to
This
$1,000,000,000.
repre¬
sents hundreds of thousands of individual units, which
collectively made possible far-reaching savings in cleri¬
cal
hours.
man
Nevertheless, while business was doing
to mechanize than in any
previous
the num¬
increase. With
approximately 8,500,000 clerical workers, the total is now
at the highest point in the history of the country.
of
clerical
There
is
no
year,
employees continued to
reason
to
expect these
conditions
to
be
The interest of man¬
agement in mechanization is therefore likely to be inten¬
sified and demand for labor saving equipment increased.
modified
Two
sales, continued
overtime
than 16.
during the years ahead.
rev¬
publicly offered corporation bonds.
look forward to another good
taxes in interest
and
are
estate, tax-exempt
further increase in life insurance
excellent
come
estate
corporations, which
will be put into investment real
enue
real
yield is slightly higher than
week,
the high price of employee benefit measures and
for
clerks
more
more
anticipate the bulk of the funds of life insurance
In. every type
growing volume of record keeping have combined to
situation. Fifteen years ago there were 10.8
ber
We
sales growth.
create this
for
the corporate tax
interest to
reason
a
work
shorter
A
wages,
as
our
the increasing cost of clerical work is one
of the most serious problems facing management.
business
of
com¬
the
building is maintenance
pair of structures already built.
in
and
War
1
Earnings will also set a
for
need
the
situation.
Before
many years.
•
task of
Abraham
can
•
•
an
for rubber seems certain to
investments
quality securities of the type which life insurance
'
exceptionally bright horizon. De¬
exceed the available
supply, and capacity output of petroleum-derived syn¬
thetic rubber appears certain even with some substantial
plant expansions now under way. Carbon blacks will
undergo a similar experience.
Synthetic fertilizer de¬
mands will continue upward despite the unsettled farm
discoveries, have
mand
highways and improved governmental and institutional
costly
depressed and is
pected to fall off about 4%.
average
life insur¬
a
with uses continuing to broaden and growth in de¬
mand well-sustained.
Plastics, particularly the newer
but
year,
another good
enjoy
will
chemicals
Petroleum-based
year
in
con¬
homes,. Farm building will probably
continue
on
entire
nine
the
until
appears
1955's
greater activity in com¬
industrial and institutional
mercial,
construction
,
100,000
units.
from
come
early
be
and
Chairman, The Ruberoid Co.
new,
not
industrial
from
both public and private
agencies de¬
is
continuing growth
with increases in proportion to
consuming units.
-
more
will
.'
interruption
an
taxes, and this is the rate which is
difficulties, there
which
For the tenth successive
year, the dollar value of new
building established a new record in 1955 by rising to
$42.2 billion. It is expected that this figure will rise
again this year by about 5%. This rise is forecast by
which
Looking into 1956, and assuming
facilities,
ABRAHAM
3.55%
After
and
determined
buy and build and improve with confidence tempered
with
about
important to policyholders,
known
workers, producers, businessmen,
investors—all
and
consumers,
—
was
that
long this high prosperity will continue without
depends upon what 166 million Americans do.
If
following
of 4%
gain
normal
income taxes, the rate earned on life
insurance company investments in
the
1955
or
change
company's
requires a great
Adam
available
preceding
materially the
ance
years.
getting into the excesses of either inflation
more
attrac¬
more
were
interest rate earned
years;
increases
wage
industry,
than in the
to
have been getting real wage increases in¬
"cost
in
investments
1955
Malcolm
stead
the
tive
Employ¬
three
is
conditions
in
way
in October to 2.1
stable
low.
Only in interest earn¬
picture not as bright.
True, due to the actions of our mone¬
tary authorities and to the boom
ings
reached 65.5 million for the first time
Unemployment declined
The
a
record
a
everyone.
almost
a
way
new
record high, and, if we
judge the mortality ratio for the
industry upon the experience of The
Penn Mutual, we find it was at a
ap¬
flows
products, resulting in
new
wealth for
new
new
call
we
de¬
register
to 5%,
of this
1956 is expected to
•
1955 the accomplishments in the life in¬
In
w;.
Total United States petroleum
growth
trend
in
1954
and
the
K. S. Adams
greater-than-normal gain of over 7%in
1955.
Gasoline
and
distillates,
'
which account for two-thirds of demand, will lead the
business justified the forecast. Sales of ordinary
life insurance were up almost 20%
world
From the
which good times can be judged and measured.
ment last
high and mortgage credit is avail¬
can
greatest productive machine the
It
as
practically every forecast was bullish and
prophets of "doom and gloom" were no longer in
the
ernmental programs.
seen.
long
as
exceed increases in produc¬
to
mand in
in
over-hanging effects of past unrealistic Gov¬
ever
high level
Total capital
is good.
tivity.
1956
Philadelphia, Pa.
surance
has
throughout
strong
a
basic
the
that
A year ago
beginning if we can continue to achieve
the
be
likely
President, The Penn Mutual Life Insurance Company,
evidence.
have
will
is
MALCOLM ADAM
promised a new, a bet¬
the only large segment of our
We
greater
attractive terms.
on
national unity and improve the lot of the farmer, about
from the
becomes
to improve and better the
We have seen that day dawn.
people.
it
activity will remain at
consumer
the
to
factors
building
particular segment of the population
ter day, not for any
all
and
these
and themselves.
ones
The Administration's program
for
climate
endeavors
for
demand
166 million free Americans
which has been created for
exercise
favorable
and the
Administration
Eisenhower
maintenance
outlook
this
general
outlay by industry in 1956 likely will
be higher.
More than a hint of in¬
flation threatens as wage increases
tend
of
Because
It was brought
just happen.
didn't
prosperity
routine
and
and greater.
this fiscal year ending June 30, 1956.
balanced budget for
but
renovations
If present estimates are realized, we will have a
July.
The
coming year
$1.7 billion at the time of the mid-year review last
was
view.
nomic
for business in the United States
Government for fiscal 1956
anticipated deficit of the
to
were
for
These will appear
in the "Chronicle" of Jan. 26.—EDITOR.
bal¬
the present fiscal year.
budget in
late
too
characterized by a
entering 1956 from a year
are
high rate of growth in business activity. The petroleum
industry, although consistently more dynamic than the
industrial average, operates as an integral part of the
nation's economy.
Any forecast ©f
the industry's position must there¬
fore take into account the total eco¬
be accommodated herein.
'
Barring unforeseen developments, we will have a
number of statements either
a
received
prosperity that our fast-
of
period
greatest
Quite
expansion which have developed
couraged initiative and
IN
SUBSEQUENT ISSUES
inflation, avoided deflation and en¬
curbed
Company
Chairman, Phillips Petroleum
We
strength and growth potential.
We
S. ADAMS
K.
jrom jirst page
about itself and up-to-date
1956
Thursday, January 19,
»..
should
One is
up
new
make
a
accounting machines recently
an
important contribution to
announced
sales.
1958
machine which automatically picks
an account through the use of
This machine will revolutionize the handling
bank posting
the old
electronics.
balance
on
Continued
on
page
42
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
(301)
41
•
•
•'
WM
f
Steel in countless forms
-.M
and
industry/ Year by
year
ijfl
solid
m$ .r •
''
j
M'v"
JM
V
%;4'-
<
v
every
y
'>
~
f
home, farm, business
its strength is furthering the
growth of America.
;<
j
1
•
Some steel from the mills of United States Steel is used
.<
'
v
serves
'
>
;
ping centers, bridges, highways, pipelines and factories. An
<
,
'
Ii
?; /
;
¥?'?•••'•■
*
> % %|
'MmW
h:
:::-i¥SWai
W'sSs
j$»vfS'
'
:
1
,
'
gpli
^
i
'
""J"//
J
!»v
•
I'
Smsrnr
''.ill
.
'iff
Watch the UNITED STATES STEEL HOUR
on
television. See your local
newspaper for time and station.
n
HI:
>
42
The Commercial and Financial Chronicle
(302)
Continued
face
improve
biggest single ac¬
checking accounts, the
of commercial
methods and
counting job in the world.
designed for savings banks.
It
marks the first use of a tape punching device linked
with a conventional posting machine. This principle will
be extended to other types of National products and will
tie them in with the electronic systems of the future.
There is every reason to anticipate good general busi¬
ness conditions in
1956. With a growing need for Na¬
tional products, new models and a good business climate,
we are looking forward to a most satistactory year.
; •
The second machine is
getting special attention. We have speeded up passenger
and freight train schedules. We are studying proposals
to acquire new passenger and cining cars to bring all
passenger operations up to t :e ''Blue Bird" standard.
Our signal and communication systems are being mod¬
ernized and train yards enlarged and streamlined. New
methods and machines are being install*, d in tne Main¬
tenance and Accounting Departments to-hold the line on
^
operating costs.
The demand for our "Piggy-Back"
service, inaugurated in mi2-1954, has already required
us to double and to re-double our ownership of special
C. ASIIFORTII
A.
'
President, The Toronto-Dominion Bank, Toronto,
another
record
but
beyond our own lines by developing
working arrangements.with connecting railroads. New
industries are building plants in nurmrous locations on
our railroad and
we are actively planning many other
sites that offer attractive opportunities for both large
and small industries to avail themselves of dependab.e
The Cana¬
boom of unsurpassed
1956 riding a
activity during the first half of the
is likely to achieve new records
doubts exist as to whether the
present
expansion
pace, of
not
ter
growth in
of
1955
tained
abnormal..
was
in
the
Act
regulations
and
were
never
Congress meas¬
carry
If full hearings are given, railroad men
the trans¬
Organization.
Business looks for record sales and
general overhauling of the Federal
Out the Tecdmmendatioriscbh-!
Cabinet" Report on Transport Policy and
designed to
ures
part of the
.
Tr.ere are now pending before
brighter.
leveling off in the lat¬
year since the rate
some
-
The prospects for a
Interstate Commerce
In¬
deed, it would be surprising if there
maintained throughout the year.
was
service
railroad service.
be
can
extending
and trailer equipment and we are now
car
through
for Canadian business.
year
dian economy enters
dimensions. Business
year
flat
that 1956 will be
the economic indicators suggest
All
Can.
confident that longstanding inequities in
higher
earnings.
Wage and salary
payments are expected to increase.
are
Consumer
freer
portation industry will be removed. The result will be
competition among the regulated carriers leading
spending should continue
to expand. The export outlook-, ex¬
cept in the case of wheat, is regarded
as favorable.
Capital investment in
new
plants and machinery will probably exceed all previous levels. There
to'more
progressive and economical service to the public.J.
of
points of weakness.
;V
First, there is the danger of inflation. Recently there
has been some evidence of inflationary forces gaining
course,
strength and these pressures
than
diminish
the
>
likely to increase rather
are
is operating at near ca¬
Shortages of materials and some types of
as
pacity level.
economy
labor
Though unit production of military aircraft w'll de¬
slightly this year as compared with 1955, higher
costs
per
unit and greater government spending for
supersonic, unmanned missiles will probably" combine
to give aircraft manufacturers a total
lem.
Thirdly, the growing disparity between farm and
These
the
economies.
comment
lines
similarities
The
in Canada
and
but
close
the
it
of
The
decline
and
U.
has
S.
be
the subject
been
noted
that
while
business
the
trend
do
business
has
been
even
The increase in industrial activity has been reflected
in a stronger demand for bank loans.
However, credit
in 1956 will be tighter and more
costly. The Bank of
Canada, through an increase in its discount rate, has
taken steps to curtail credit expansion whereas a
year
ago its policy was one of easy money.
K.
President, Wabash
Railroad
traffic
ATKINSON
Railroad
volume
during
Company
1955
has
shown1
a
marked improvement over the
previous year and from
all indications should continue at
present levels
1956.
through
The
pany
in
1954
carloads
and
by Wabash Railroad Com¬
1955 were 10.57%
5.09% above 1953.
revenues
for
of 7.36%
over
for
handled
the year
1955
show
1954.
are
an
above
Total
increase
closed, the
net income data for 1955 is not avail¬
able. The recent substantial increases
in wage rates granted to the railroad
brotherhoods,
costs
5n
of
material
and
with
rising
supplies used
industry, will greatly affect
our
tne
combined
future
net
circumstances
earnings.
it
has
Under
become
for the railroads to seek
sary
the
neces¬
7%
a
increase in freight rates.
To the
greatest extent possible, the
are going ahead with their
railroads
modernization
programs
iully prepared to
of
the nation.
serve
For
fully dieselized for
so
the
the
as
to
Arthur
K. .Atkinson
be
growing transportation needs
Wabash system, which
has been
several
years, we placed orders dur¬
ing 1955 for the earliest possible delivery of nine addi¬
tional
diesel-electric
freight
cars
of
equipment is already in operation.
this
past six
at
years
a
locomotives
and
for
total cost of nearly $33
our
gross exDenditures
3,634
million.
for
In
new
Some
just
the
improvements
to road and
A
as
equipment properties total nearly $98 million.
large part of our expenditures since 1950 qualified
defense
facilities
on
which
permitted for Federal income
60-month
tax
writeoffs
are
This
has
purposes.
oeen most
but the
helpful in financing the improvement program
privilege of such rapid amortization will not be
available
if
we
are
economic
for new projects
starting in 1956. We know
to keep pace with present trends in America's
growth,
we
ment programs with
will have to continue
even
our
improve¬
greater expenditures.
In the
devices
and
for
de¬
in
use
L. AUSTIN
& Laughlin Steel
Corporation
fifty-six promises to be an active year in
the steel industry. Our own
company production sched¬
ules, as far into the year as we are able to plan, reflect
full
a
most
order
of
book.
For
several
months
the
demand
in
product categories has
been greater than our
ability to sup¬
ply. We have not so far seen much
if
indication cf growing inven¬
any
tories
our
of
steel.
semi-finkhed
process
the
for
most
our
eration in
stocks
own
hand
on
economical
Early in 1955,
we
op¬
1956 will mark the first
full year cf another very
large
tal building program for our
that
in
plants.
The year
pany.
of
and
fcr the most part below
are
level
Our
steel
capi¬
com-
determined "
we
should proceed forthwith on
series
cf large projects designed
substantially to revamp and extend
C. L. Austin
the scope and capacity of-our tubu¬
lar products production facilities. To
this end we are now going ahead with the installation
at our Aliquippa Works of a new continuous
strip mill
and four new pipe mills, as well as equipment for the
production of additional steel using the new oxygen
a
converter
process.
later
Cleveland
during 1955
Works
to
concluded
we
provide for
a
plans for
new
blooming
substantially enlarged and improved hot strip
a new high capacity cold reducing mill; substan¬
tial finishing and shipping facilities for hot and cold
rolRd sheets; and new electric furnace
steelmaking ca¬
pacity.
mill;
mill;
a
ingot tors
cost
per
the
of
than
year—more
when
program
11%
an
added
to
increase.
the
projects
already authorized and to be authorized will aggregate
in excess cf $250,000,000 for the
period 1955 to 1958
inclusive.
This' program will bring to approximately
three-quarters cf a billion dollars our expenditures for
plant and equipment since World War II.
shift¬
the build-up phase to a
phase involving mainler.ance of
Summarizing my views for business during the
ing year, I must say that the combination of our
com¬
cus¬
tomers'
Our net sales in
the r-urrent fiscal year, which started
on Oct.
1, 1955, will probably equal
those of last year, when they totaled
almost $817 million, an all-time high.
muCi? enlarged activities in (he construc¬
capital equipment field gives strength to our
expectation that 1956 will be a very active and, we
hope, a prosperous year for the American economy. We
place great faith in the continuing need for a profit¬
able, expanding steel industry to meet the ever-grow¬
>
Our net income of
our
large
own
L.
Atwood
'''.ft
$32,349,176 last year was also a record
presently indicated
as
and
very
tion
J.
requirements
and
ing
demands
fcr
belter
living
by
the
people
of
our
country.
,
only about half as high as the average for all mi.nul'acturing industries in America.
' H
The bulk of North American Aviation's business con¬
WALTER
was
tinues
craft
to
for
be
the
the
manufacture of air¬
year wa will
be
development and
armed
This
services.
making the FJ-4 Fury Jet fighter and the T-28C trainer
for the U. S. Navy and one model of the F-86 Sabre Jet
and two models of the supersonic F-100 Super Sabre
Jet fighter for the U. S. Air Force.
Our F-86 Sabre
Jets willl be built under license by fcur foreign coun¬
tries: Canada, Australia, Italy, and Japan.
We formed new operating divisions recently to farther
develop our work over the last 10 years in fields allied
to
aircraft
our
business.
These
fields
include
We
enter
the new year with optimism for the con¬
growth cf the Greater Cincinnati area and a
pledge to adequately meet its gas and electric require¬
ments.
Our
investment
ana
studies
and
proposals.
siles.
Its efforts
riod the
the
concentrated
on
the
ment,
or
contracted
for
seven
reactors
far, including
America's first medical reactor and first private indus¬
trial research reactor. In cooperation with the Atomic
Energy Commission, Atomics International soon will
complete construction of the important Sodium Reactcr
Experiment, a pilot plant for
tricity from nuclear energy.
the
Further
evidence
easily be
struction
for
the
of
faith
our
and
in
and prosperity of
serve
in CG&E's con¬
expansion
program
seen
1956-57.
than
More
Walter C. Beckjord
$63
million
will
be
spent in the next two years for plant
and
It
equipment.
the
of
end
at
the
to
include
will
the
construction,
of the fourth electric generating
1957,
500,000
by
unit
Station, bringing that plant's capacity
our total electric system ca¬
Eeckjord
kilowatts and
pacity to more than 1,100,000 kilowatts.
Because of long range planning of this type, we at
CG&E feel certain we can adequately supply our pres¬
ent customers and stand ready to provide power for any
industry deciding to locate in our service area.
We
expect
average
our
electric customers to increase on an
year, and that by 1960 our
using over 50% more electricity than
of about 2M>% each
customers will be
used
during 1954.
Growth
in
anticipated.
gas
customers
rate
of
more
than
consumption will be
of
and sales
also
is likewise
Our long range forecast for the company's
department indicates
gas
elec¬
The development, engineering, and
manufacture of
automatic navigation and control equipment for aircraft
and missiles has been concentrated in the Autonetics
Division.
This division is now producing the weapons
in
history
the 2,600-square mile area we
can
.
of
previous
the future growth
so
prcducticn
accumulated
entire
by $53,700,000.
for
built
added investment exceeded
investment
-company's
new
design, develop¬
manufacture, and operation of nuclear reactors
peacetime research and for the generation of power.
Now the third largest organization in its field, it has
are
of $127,200,000 at the end
1954.--During that nine year pe¬
vestment
of
rocket
Atomics International is an outgrowth of our earlier
studies of nuclear energy as a source of power for mis¬
in additional property,
plant
equipment, at original cost, in
U.e nine years ended in 1954, was
approximately $181,100,000, as com¬
pared with the company's total in¬
guided missiles, electro-mechanical oroducts
and peaceful applications of atomic energy.
Each di¬
vision has, we believe, substantial potentialities.
missile
BECKJORD
tinued
engines,
which recently moved into a new $9.5
million plant in Canoga Park, Calif., is active in ihe
design, development, manufacture, and testing of rocket
power plants for aircraft and missiles; in the design and
development of small armament rockets for aircraft;
and in all related research and experimentation in fluid
dynamics, thermodynamics, chemistry, and metallurgy.
Formerly a part of North American's missile organiza¬
tion, the Rocketdyne Division is now the nation's lead¬
ing designer and developer of high-thrust rocket engines.
Our Missile Development Division is concerned with
other phases of supersonic unmanned vehicles, including
the design, engineering, and development of missile air¬
frames and the operational testing of complete missile
units.
It is currently working on the intercontinental
SM-64 Navaho and is engaged in a number of other
C.
President, The Cincinnati Gas & Electric Company
.
Rocketdyne,
As the accounts
not yet
now
control
Nineteen
The
greater 3 high, but this profit is subject to later renegotiation un¬
der the Renegotiation Act. Actually, our restricted rate
of profit on sales, though slightly higher than in 1954,
than in the U. S,
Preliminary estimates, indicate that
Canada's Gross National Product rose 10% in 1955 while
that of the U. S. was ud only 7%.
ARTHUR
C.
000
aircraft
diverge activities.
activity which
activity in Canada
is
automatic
share of this business because of our
downswings.
has come', to
be known as the 1954 recession got a later start in Can¬
ada than in the U. S. Furthermore^ the
drop in Canada
was not as severe.
In the upswing, the U. S. again led
the way, getting off to an earlier start, but the
upsurge
in
various
The combined added steelmaking
capacity at our Ali¬
quippa and Cleveland Works will amount to over 700,-
existing forces through gradual re¬
placement of obsolescent equipment.
We expect Noith American Avia¬
tion, inc., to ^obtain a reasonable
of much
differences
the
from
new
S..
relationship of economic trends
U.
should
in
States and
Canadian
military
the
that
procurement program
ing
the
may move in the same direction
in the extent of the upswings and
occur
dicated
•
problems exist in the United
same
underline
cline
1956 sales volume about equal to
already apparent. Secordlv, Canada's huge sur¬
plus of wheat presents a very difficult economic prob¬
disturbing.
and
President, Jones
our
$8.4 billion gross sales estimated for
1955.
Government officials have in¬
are
urban income is
developing other military electionic systems
vices
industry.
blown
L. ATWOOD
President, North American Aviation, Inc.
Ashf0rth
,
are,
is
Somewhat
c
A
Thursday, January 19, 1956^
.
cf
rising costs this will prove a real challenge ta
operating efficiency through adopting better
securing greater traffic volume.
Improvements and innovations in railroad service are
from page 40
.
.
2%
increase of customers at a
year and that
their 1960
an
per
more
than 43%
greater than that
1954.
In
the
next
five
years,
CG&E
expects
electric
In 1945
its
peak requirements to reach 1,036,000 kilowatts.
it
was
374,000 kilowatts.
By 1960 the company's gas sendout is expected to be
more
than
550
million
cubic
feet
as
compared
Continued
on
to
page
113
44
Intense Cold... Fierce Heat...
—forces of
Heat
.
.
to
.
so
cold
fierce
so
nature
it makes steel boil
intense it
liquid... pressure
turns
the very
so great
force of 600 hurricanes
..,
NATURE
air;
it has the
by industry in making
things
we
electric
so many
markable
familiar
bottles,
furnace—6,000 degrees hot
into stainless steel and other
Oxygen,
and industry,
so
vital to medicine
is extracted from air made
of 15
tons per square
plastic is used
things
as
terrific
"nothingness" of
'
to
BUT A
FEW
examples of
re¬
containers, and
Exposing nat¬
pressures
vacuum
the forces of
nature to create
processes
and products
the
necessary
America's progress.
FREE:
Learn how
Alloys, Carbons, GasesJ
Chemicals, and Plastics improve
that you use.
many
things
Ask for "Products and Processes9
booklet.
and the
have been
during the last 20
those
as
of Union Carbide have discovered how
make such
key steps in making hundreds of
chemicals
ARE
inch
unbreakable nursing
squeeze-spray
Union Carbide
AND
new
years.
30
east
CARBON
42nd
street
CORPORATION
[tr3
new
In Canada: Union Carbide Canada
york
17, n. y.
Limited, Toronto
UCCs Trade-marked Products include
Union Carbide Silicones
bakelite, Vinylite, and Krene Plastics
Dynel Textile Fibers
Electromet
under
to
ural gas to
—
Synthetic Organic Chemicals
SQUEEZED
transparent wrappings.
birthplace of alloying metals
fine steels.
zero.
GAS
THESE
you
how industrial scientists such
new
of the
that go
than 300
changes into polyethylene. This
used
—is the
to more
to use
pressure
take for granted today. The
arc
degrees below
ETHYLENE
space so
are
by UCC scientists to work for
liquid when cooled
"empty" that nothing could live in it.
THESE FORCES OF
used
Terrific Pressure
Alloys and Metals
Prestone Anti-Freeze
National Carbons
Haynes Stellite Alloys
Eveready
Acheson Electrodes
Union Carbide
Flashlights and Batteries
Pyrofax Gas
LlNDE
Prest-O-Lite
Oxygen
Acetylene
'44
The Commercial and Financial Chronicle
(304)
Continued
million
jrom
cubic
feet
the
on
day of
peak
President, Rochester
To meet
1945.
The outlook
the
growing needs of the Greater Cincinnati service
it wni be necessary, as previously noted, for tne
company to spend
more than $63,000,000 in the next
two years for additional gas and electric facilities.
While providing excellent service to present custo¬
excellent.
the
in
mers
Cincinnati
Greater
js
area
principal
our
CG&E also is participating in two major en¬
terprises on a national scope that undoubtedly will
leave their stamp on all mankind.
One is the Ohio Valley Electric Corporation project
in which CG&E and 14 other electric utility companies
concern,
engaged in constructing approximately $400 million
are
worth
facilities
of
supply
to
largest single
the
power
in
history, that of the U. S. Atomic Energy
Commission's gaseous diffusion plant near Portsmouth,
contract
Ohio.
The
second
major undertaking is the Atomic Power
Associates, Inc., and the Power Reactor
Development
These two non-profit corpora¬
Development Company.
tions, of which CG&E is
part, have been authorized
a
by the AEC to plan, finance and construct plants for
the peace-time use of atomic energy.
We feel that participation in
twofold beneficial effects
it
will
abreast of latest development in this
field.
Arid second, it affords us an
keep us
important
very
opportunity
these projects will have
First,
and our customers;
us
on
join
to
with
privately
taxpaying
other
owned utilities to demonstrate that these
companies are
ready, willing and able to develop the technical knowl¬
edge to utilize atomic energy as a substitute fuel for
the benefit of their customeis at such time as it becomes
economically feasible to do
so.
It is the constant effort and desire of the company
and
employees to maintain the best possible service. I
sincerely believe our company will always be ready to
serve the needs cf a growing Cincinnati and surround¬
ing service area in a manner that justifies the confi¬
dence and goodwill of our customer public.
its
SOLOMON
BAKER
It
Chairman of the Board and President,
Pyrene-C-O-Two Corporation
At the retail level
Christmas
season
associated
early
lines
have just
we
the first of December.
as
True,
in
inventories
out
as
enter 1956,
we
as
and many
sold
completely
reported
were
witnessed the greatest
The toy industry
record.
on
industries
some
they
moderately
high,
where
A
but
Steel
now
1956 may
last
sold
well
into
the
ously, and there
were
to be
seems
unions, it
may
well
very
rescued from the middle
us
reduction
a
of
the
to
are
that
industry
demand
still would
for
have
reluctant to
expenditures
not
discuss, but
in this area, but as of
most disap¬
are
are;'that- the
armament
^Obviously this factor will add
outstanding
were
be
industrial outlook,
our
goods, although
an
will
We had all looked hopefully
indications
will be accelerated.
in
year
opinion
my
even
tax
from
reduction,
political
we
increased.
in
a
gesture that, aside
Presidential
election
would stimulate the economy by releasing funds
for capital investment. I should
very much like to see
year,
taxes
lowered
spiral which
the
Russian
summer,
it,
and
I
discount any possible
inflationary
people think might result,
bqt unless
attitude changes
drastically before next
some
seems to me that taxes
reduced.
All
are
not
likeiytto
be
-
these
factors
in
evidence
—record retail Christmas
at
the
turn
of
the
year
sales, moderate inventories,
an
new plant facili¬
the books, improved
labor-management
relations and the likelihood of
armament expenditures
continuing at a high level—make me
decidedly bullish
for
already
1956.
have
no
feel that
on
Should
we
doubt that
we
are
in
have
a
tax
1956 will be
a
reduction
a
long time.
as
well, I
another record year.
rising economy and that
continue to live in this atmosphere for
haps for
elec¬
of
uses
the
with
Public
Private
vs
In
and
con
does not also have.
lic operation
of
This
taxes.
avoided
has
must
is
Alexander M. Beebee
otherwise
in
share
of
the
rest
free.
ever,
since the taxes
At a time when
vital for the future welfare
exist
can
part slave
certain
I
will
time—per¬
justify
the
so-called
Pacific
tax-exempt
Northwest
that
are
areas
avoiding
taxes will
as
in
their
areas
effect.
tended to
result
a
of
Taxes
exist
modern
were
relatively low
themselves. How¬
unto
of
means
transportation,
of
ease
completely changed.
It
to
seems
when
this
such
the
us
time
has
I
reason
have
fear
no
in
come
special privilege should
that
this
stop,
if
country
and
the
it
is
public
for
really
understands the issue that their decision will be in favor
Private Enterprise, not
only because When all real
of
costs
are
considered, private operation can do a better
job for the customer, but in addition, under such a plan,
everybody is treated the same and the tax burden ?s
further
•shared by everyone.
effort
the
this
for
who
country
in
steps
made
If the
the
trend
stopped.
direction
20%
is
Such
are
to
be
to
be
their
allowed
situation
a
not
carry
to
made, and an
fair share of
in the other
go
will
benefit
no
one
and
Executive
Falstaff
Falstaff
Brewing
best be described
future
has
of
had
the
its
of
element
of
fuel
in
cost
it.
and
The
downs
showed
in
1955,
in
what
might
sales
on
an
to
industry,
The
which
past
increase of
10
about
86,000,000 barrels in
the heels of
1954.
the
over
slight decline
a
increase
industry enthusiasm
Generally
Manager,
entertains
industry.
ups
3%
The private utility business of this country has
objection to the people adjacent to large hydro
developments getting their power at a price that does
(3)
General
cautious optimism as regards the
a
brewing
share
and
Corporation
years,
an
•
Brewing Corporation
as
supported.
include
.
Vice-President
as
no
not
J.
IIARVEY BEFFA
*
industry just cannot
our
ingly important fundamentals that should be championed
that
was
spurred
actually of
less
speaking, this represents about 15% of the cost of the
finished delivered power.
However, it does not seem
immediate importance than the
factors that produced the increase
fair that in addition the people in those areas should be
in some cases to avoid all or part of the tax
and
interest
charges, which total some 40% of the
the years ahead.
and set the
allowed
unfair, discriminatory and un-Arnerican. Its purpose is
purely for political advantage. If the time has come in
America when the people who pay taxes are to become
"second
then
I
class
am
citizens"
sure
and
will
you
see
principles of
Tea
discriminated
against,
the American
The
be
that the very fundamental
"Boston
Economy are in jeopardy.
was
brought about by just
Party"
such unfair
fundamentals, and the time has come in this
country when the people should understand these facts.
The illusionary
(5)
advantages
less
and
time
as
public
of
power
will
Private
utility
operation under regulation by the Public Service Com¬
mission isdpased on a fair return on "original cost" less
deprecidtiqh. Public
power
goes
on.
in transmission and distribu¬
tion mustsooner
or
later face the realities of present-day
value, either
a
result
or
construction
new
Such
as
addecL
costs
in
condemnation
of
they
case
build
proceedings,
new
facilities.
of
public power programs can go a
long way toward obliterating the "fancied" advantage
of tax avoidance.
Therefore, the consumer under such
programs
will find his electricity but little if any
.
cheaper
the
and
country's^tax burdQ^s have been.in¬
creased,.
Therefore, it is for all these reasons that
public power will find it increasingly difficult to show
any benefit and will involve principles that are definitely
against the broad public interest.
One
(6)
public
other
power
various
is
advantage that
that
authorities
may
has
interest
the
put
out
is
been
on
at
the
a
claimed
bonds
lower
for
that
rate
of
stage for further gains in
Perhaps
these
the
factors
number
of
Bureau
figure
Harvey
older.
Thus
an
the
trend
in
of
the
entering
the
Reports from the U. S.
persons
of
Census
tapered
show
sharply
that
this
downward
the lowest point of a 10-year
period
in
1954.
The trend has now been
reversed, with indications for
of
significant
the
following World War II and reached
Beffa
future
most
is
adult market.
(4) Perhaps the most unfair situation attached to
public power programs is that they not only avoid taxes
in their operations, but in the sale of
power they give
preference to groups who also avoid taxes. This is most
number
of
a
gradual increase in the
21 years of age and
persons
the
brewing industry can look forward to
increasingly larger market potential.
These added millions of persons will hav'e added
of dollars to spend.
.Disposable
lions
personal
should steadily rise from 250.1
lions in 1965.
•
*
x
A
third
factor
that
adds
Beer
is
consumed
some
bil¬
income
380
bil¬
to
industry optimism is the
the beverage of modera¬
by two out of every three men
increasing acceptance of beer
tion.
billions to
as
and
by approximately 40% of the women of America.
popularity is spread fairly evenly among all income
groups and in all regions of the country.
This
The degree to which caution
tempers optimism
with individual breweries as
they inspect factors
may
varies
which
influence! their
profit margins.
Competition has
down, yet production costs have edged
the costs of advertising and
selling.
Texas, too, have made their weight felt with Federal
excise taxes alone paid
by the industry, amounting to
$774,000,000 during the past year. " ■'
held beer prices
upward
as
have
The answer has been to place heavier
emphasis on
higher sales volume to meet the problem of higher costs.
Falstaff, as an example, has followed a vigorous pro¬
of plant and market expansion and has steadily
improved its production and financial position.
gram
interest
than private utilities can
put out. This again
illusionary benefit and is the result of avoiding
taxes. Who bought those bonds? A person with a
$50,000
a year income would
buy those bonds in preference to
is
an
business
case
some
to
avoiding their fair
share of taxes in this category, it seems advisable that
in
customers
a
we
is
shifting location, the situation
Taxes that formerly were a
small portion of the cost cf
things have both grown
and multiplied and now constitute a
tremendous burden
on enterprise and
development in tax-paying areas. As
a
result, tax avoiding areas not only compete unfairly
with other areas in national
markets, but also entice
industries and people from other areas.
has
sound
can
taxes
help them compete in the national markets.
time, these "special privileges" were not so
together with the
up.
nation
no
Neither
in
the
of
business in this country,
country is on the road.
Of
power
our
to
and these
democracy exist
groups avoiding their fair share of taxes,
which must be made up by taxing those who live in
other areas to a larger degree.
If our Nation is to
grow and prosper, we must have "Equality of Oppor¬
tunity" and "Equality of Taxation." Either all utilities
should be exempt from taxation or everyone should be
taxed equally.
Since there are only some 20% of the
with
that
detrimental
taxes.
Lincoln said that
(2)
order
At
balancing of budgets is so
this country, it seems strange indeed that certain
groups should be asked the privilege of avoiding their
fair
any adverse
but rather it is
Tax exemption is a tremendous
subsidy to the nontaxpayer. In the early days this privilege of tax avoid¬
ance by certain
groups started out in undeveloped areas
of
and
avoidance
the
people
and
have
areas that are forced to
carry more than their fair
share of taxes and then compete with these tax-free areas.
benefit,
made
the
of
does
other
result the public is
said that I have no
private utilities is the avoidance
phantom
a
be
the
TVA
not
may
therefore,
bitterly fight for the con¬
tinuance of their special
privilege. But that does not
make it economic or in the public interest.
We must
consider
the
"drowning" effect on all enterprise in
The only apparent benefit that pub¬
over
exemption,
policy."
issues
If
their fair share of
the
of
Tax
particular company,
one
one.
socialization
like
However, I have often
people's decision if they once understand
the issues, which briefly are as follows:
(1) The generation and distribution of power contain
no
magic formula which one group has that the other
fear
these
any
Government in
course,
as a
confused.
on
then
Power
this subject and
on
closing,
national
the
which, for political reasons,
will probably be brought into sharp
focus this coming year.
> Many statements have been made
pro
borrowing public.
effect
a
issue
unusually large backlog of orders and
ties
the
tricity
in
a
modern
society
are
constantly increasing.
However, there is a very important
fundamental which the
utility in¬
dustry is facing which it is impor¬
tant that the people in this country
generally understand. This has to do
become Jess
much-to-desired
a
ramifications
because
A practice of tax exemption may subse¬
benefit persons of wealth more than
not appear to be a sound
Second, the utility business should
if armament
Armament outlay in turn sharply affects the
prospect
of
J
year.
and
progressive
to
serve
nothing to do with hydro power, and which most other
areas throughout the
country must carry.
expenditures
pointing. ' Present
race
harmoni¬
conducted
the results of the Geneva meetings
now,
the
If the merger of the AFL
paramount effect on
a
Savings Bonds.
normal cost of electric service
revenue, and which have
mean
is the armament program.
for
-
position.
A factor which most of
which has
.y-; V'"
be expected to reduce competition between
can
for
are
quently
good
of
greater
next
be
"Government
system
a
than the saving in interest cost.
Per¬
high incomes investing in tax-exempt securi¬
ties are able to secure a
higher net return on their
capital than persons of moderate means who buy Defense
condi¬
better understanding be¬
a
tween labor and management.
and CIO
well be another out¬
year-,
year
indications
all
entitled
"With
with
sons
general
benefited carry their fair share of taxes, including the
cost of the benefit.
It seems, to me these are exceed¬
This is further supported by the
improved atmosphere of labor. Ne¬
gotiations in the major industries
Baker
since
to
Mund
states:
taxes, the loss in tax revenue from persons
high incomes who buy such securities possibly is
with
tions, the utility business should be
facing an expanding market this
be
With the backlog of
already on the books, plus
the normal demand for goods that
may be expected, it would
appear
R.
and
economic
which
much
closely
very
direction, then socialization of
business
S.
business
tied
public utility field is
textile
indus¬
time—the
and related
some
tries
standing
relations
favorable
is
'Vernon
Thursday, January 19, 1956
.
income
for this:
reasons
no¬
are
second quarter.
that
industrial
the
Corp.
where, tnen, will the necessary taxes come from? Private
utility operation treats everybody the same. The people
industry.
are
business
our
Electric
&
field that has been de¬
a
for
pressed
two
taxes.
substantial improvement is now
evident in
business in
are
BEEBEE
Gas
are
the danger point.
near
First,
for
There
area,
Professor
Business"
ALEXANDER M.
42
page
.
.
of
expense
investment
tax
of
that
avoidance
under
would
which
the
yield
benefits
13%—another
a
few
at
the
guise of public interest.
Splendid support to this thinking is the recent book by
many
In
1955
Falstaff
sales
totalled more than
3,650,000
barrels, an 11% increase over 1954 sales which had
placed the brewery among the top brewing firms in the
nation.
The company, which experienced its
greatest
year in 1955, appears to be headed for another banner
year in 1956.
Continued
on
page
46
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
Some 1955
(305)
Highlights of
NEW YORK COLISEUM. During the year Bethle¬
MARMORA ORE. The first shipload of pelletized iron
hem erected 13,000 tons of steel, fabricated at
ore
the Pottstown, Pa., works, and supplied 4000
mine left for Lackawanna plant on May 11,
of
tons
reinforcing bars for this project. In
addition to the
as
large
capacity
includes
huge exposition hall with
space
nine football fields and seating
as
for
10,000
persons,
the
Coliseum
20-story office building.
a
from Bethlehem Steel's
This
SENTINEL AT SEA. 110 miles east of Cape Cod
in the open ocean
Marmora, Ontario,
new
shipment followed nearly five
years
Tower,"
1955.
of explora¬
ings to the mainland in
tion, construction and stripping activities at Mar¬
mora,
It is
Built
and construction of dock facilities at Picton.
steel
pellets will be shipped each day.
ore
Bethlehem's
at
warn¬
of air attack.
case
Quincy shipyard and
fitted out at East Boston yard,
expected that when full production is reached,
1400 tons of iron
stands the first steel "Texas
radar island which will flash
a
(shown during installation)
the island of
was
towed by
powerful tugs to its permanent location at
sea.
'■.'A'.'.
FIAT CARS FOR TRAILER TRUCKS. Two hundred
NEW FACILITIES. The picture above shows the installa¬
STEEL FOR FLOOD REPAIR.
special flat
tion of additional
cane
cars were
built at the Johnstown,
Pa., plant for the Pennsylvania Railroad's
new
at
"TrucTrain" service. Trailer trucks load
shipper's door, ride these
cars
to
a
terminal
destination, debark and deliver to the
near
consignee's doorstep. Bethlehem also built 50
cars
for
a
similar Erie Railroad service.
the
equipment for galvanized strip at
Sparrows Point, Md., plant. Other
under construction
were a
tin
a
at
the
same
plant during 1955
plate production,
160-in.
an
was
WORLD'S LARGEST OCEANARIUM.
won
porpoises, and other deep-sea dwellers
National
large steel plants in the
Safety Council's contest. The Spar¬
Sharks, giant
of
were
Marineland, in Southern California. Largest of its
wanna,
a
shipments of steel. Thousands of
rolled and rushed to stricken
came
areas.
from the Bethlehem,
STEEL FOR ST. LAWRENCE POWER. Over 16,000
rays,
tons of
kind, the Oceanarium has
areas
Pa., plant, which itself suffered flood damage.
view at
are on
Hurri¬
shapes, piling, reinforcing bars, and
Much of this steel
also under way at other Bethlehem plants.
con-
among
rails
electric-weld pipe mill and
SAFETY IK STEELMAKING. For the sixth
place
tons
Soon after
flooding of Vast
Northeast, Bethlehem began making
emergency
sheared-plate mill. Construction to expand
secutive year,
first
in the
facilities
48-in. cold-reducing mill, added equipment for
capacity
the Bethlehem, Pa., plant
new
Diane's disastrous
the
framework of Bethlehem
sheet-piling
were
rolled at the Lacka-
N. Y., plant for
vast
St.
Lawrence
'
rows
Point, Md., plant
winner.
seven
was
the third place
Altogether, Bethlehem operations
awards in
all contest
first places, one second
won
categories: five
place and
one
third.
River power project,
structural steel, and the entrance foyer and verandas
are
shaded by "awnings" fabricated from Bethlehem
galvanized sheets.- Visitors
can
look at
some
5000
species of fish through viewing windows in large tanks.
.
;
use
for
in cellular cofferdams
at Long Sault (above) and
Barnhart Island.
bethIEHEM
5TfEl
w//////////MW////////,///j
45
46
The Commercial and Financial Chronicle
(306)
•
■
I
.
Continued
jrom
S.
CLARK
During the past 12 months
tacular
achievements
have witnessed
we
from
spec¬
in
technology and have attained
unparalleled levels of production.
From these heights
we find even
wider horizons lying ahead. As we view
the coming year we may be very
sure
of one
thing. There will be
reduction
no
for material
for
in
tne
things
human
is nearly
will
ways
be
(5) There is
appetite
creased
will
It
us.
given
nation.
No
exerted
less
upon
leaders in
our
will
total
A natural result
be
the
ment
increase
At
force
are
economic
new
with
be
and
the
effort.
in
during 1956 should
capital invest¬
industry.
and
to
create
products,
new
ex¬
S.
C.
Beise
.
new
growing wealth of research
facilities and our basic strength, are particularly quali¬
fied to discharge our obligations.
is
industrial
Va.,
is apparent that the pattern
encouraging
TAFT
motive
for the
full of promise.
and
one
But for
is
GEORGE
P.
Company
be
treated
j
The
.
but
to
World
War
II
industry
has
for
the
striving
to
export
Well
match
welfare.
facilities
in
and
bey
-
has
invested
long
plant
A
on
on
building
that
will
of
period of only 16 months.
our
in-
must
be
being provided faster than
strong continued demand for glass due to these
factors:
government
tion.
residential
that
school
residential building
reports indicate
a
are
at
continua¬
building should decline, it is
and
of
use
into
public
construction will
increase.
domestic
>
cutbacks
in
at
'(2) Automotive production, with
appears
cars
using 50%
likely to continue
at
more
high
a
^
size¬
be
as
food
as
or
the
requirements
is
time
the
first
World
raw
the
War
in
up
ness
declining.
prices
no
are
contributed
spending
a
to
more
in¬
continued
of
the
decline
but
at
a
time
dips
unhappy part of their previous busi¬
an
This is confirmed by reviewing the favor¬
history.
As
plan
a consequence, we
of
our
for
reasons
new car
on
the 1956 passenger
predicting
sales in 1956
an
may
exceptionally
be summarized
follows:
prevent unusual dips in their business.
For
changes are planned to maintain sales
to
years
instance, model
up
and
We have mentioned in pre¬
for alleviating the cyclical and seasonable
at
a
high level.
that
materials
area.
published
(1) The automotive people have done much in recent
agriculture
shaky condition
and
activity here in Detroit so as to keep
thinking in respect of things to come.
high volume of
<
materials for
are
that
lack
of
:
Design changes
selling well; changes
public
models
is
appeal.
timed
to
Thus,
attract,
deferred
on
models
accelerated
on
models
are
are
the public presentation
customers
and
compel
steady buying.
(2) Automobiles produced prior to 1954 are rapidly
becoming obsolete because the majority of them do not
have any of the amazing new safety features, such as
automatic transmissions, power brakes, power steering,
visibility
provided
through
wrap-around
glass,
etc.
in
when
before for food,
share of the food
ever
diminishing
growing
in the "Chronicle" that the
of the automotive industry have the faculty of
Some
Rising distribution costs
this
than
fast
and truck business being the second best in history.
car
that
with
commensurate
getting
are
Costs
and
new
generally conceded here that '56 will see
sold than in '55, the expected drop
be as severe as is generally predicted by those
articles
years.
>
in
and livestock.
crops
doubt
consumers
income.
our
believe
able results of the automotive industry for the last three
agriculture while farm income
The consumer has not had a reduc¬
food
prices of
have
their
of
have, gone
we
is
that have been
the
definitely not in
it
measures
as
whole
that
is
being ingenious and dynamic enough to apply remedial
and
shooting started in World War II.
tion
their
leaders
.:•
the
labor
this
of
vious
production plus acceler¬
as
relatively
outside of the Detroit
seek
we
must be found for familiar products
same
time seek to develop new
crops
used
that account for
business—one
in
a
of
While
uses
the
are
we
will not
.Higher horsepower and
as
dollar.
well
the
as
new
more
colors
efficient engines of today,
and
styling,
hasten
the
obsolescence.
But it is
eral
extremely important to farmers that the
outlook
strong
is for continued
demand
for
meat,
products of the farm.
gen¬
(3) The willingness not to defer new features incor¬
porating significant engineering advances, as was the old
days' custom, but to add them forthwith is improving
the quality, safety and convenience of autos to a degree
capable of enticing much earlier trade-ins by people
who presently have the money or credit so to do.
prosperity, with continued
eggs,
milk,'fibers
and
other
High employment under ordinary
a
healthy demand for farm prod¬
ucts.
While
cannot
the
be
managed
commodity accumulations of several
worked
and
a
off
by magic, their disposal
balanced
economy
in
So, again
years
can
agriculture
be
can
Agriculture being the bedrock of
.
country
as
repeat, the feeling in Detroit is that the
whole will be pleasantly surprised, as it
we
a
has been for the past several years, at the results accom¬
plished by the industry when they
end of
be attained.
£loss than in 1940,
dies
fewer passenger cqrs
disposal proimproved seeds
account
with
circumstances creates
high level and
hang like a
wheat and
the
study of the debt structure shows
farmers
company's history.
and
taken
;;
New
can
has been
more
the LOF plants during a
Total sales of glass for the
year will be 35% in excess
of the company's record 1954
output.
Orders on hand
will sustain this volume far into
the new year.
We ex¬
School, industrial
and
with
techniques, wider
adjustments
G- p- MacNichol, Jr.
To meet the
urgent needs of
are
market
in
two other factors
this
in
abreast
which
tied
are
increase
leaders
However, we cannot expect farmers to continue to
absorb
higher operating costs without compensating
program
vestment
Benson
to the
new
mean
than $50 million at several of
customers these facilities
a
Taft
Lxra
which followed
was
already
and
part of the automotive industry, we
constantly endeavor to keep in touch with the business
pull
of
industry.
in
enough and
last year we
embarked
be
production
we
which
improvement
However, this
not
farm
There
Since
T
considered
of today.
and expansion.
early
storage
needs.
while
more
than $87 million
tools
dustry.
dynamic agriculture
period Lib¬
Owens - Ford
this
have
we
in
category and also responsible for
same
available
ated disposal of surpluses must be
coupled with research
which will open new outlets for the
growing demand
Allied
business
improved greatly the operations of our powdered metal
parts plant during '55. Tnis improvement, we feel, will
assist us in obtaining a larger share of the business
international trading in
cotton,
New
the
with
in
domestic
fertilizers
balance
been
.
the
over
grams.
and
1956, with strong indications of good busi¬
throughout the year.
Ever since the close of
At
more
the aircraft engine industry as a whole will Operate at a
higher level in '56 than in '55; the other is that we have
scope and
future
farm income should
ness
almost certain
basis.
accordingly.
commodities
first half of
if
items.
Further curtailment of production without diminishing
;
glass industry has achieved another record
anticipates continuing high demand during the
1955.
sold during the entire year of '55.
we
t.iey aid greatly in "jelling" model changes and
develop thereby a more accurate technique in fixing the
design of permanent tools for production of the new
other crops.
v
during
new
plant to render a novel model change service,
using rapidly made, low-cost, temporary tools for pro¬
ducing prototype parts to facilitate model changeovers
in durable goods.
These accurate die-struck prototype
parts have the unusual advantage of being almost exact
equivalents of the production part yet to come. In this
dilemma cannot
political
a
achieved
shadow
-
substantially increased because
all automobile, truck and appliance
a
disposal will continue to
main challenge as here is the
•depress
Glass
be
able part of our increase in '56, is the fact that we built
Stabilizing farm income for the mo¬
ment is highly important and must
MacNICHOL, Jr., President
Libbey-Owens-Ford
before in
on
be
our
the
flat
Bigger*
farm
our
key to agriculture's
DIGGERS, Chairman
will
considerably
for 1956 than
BENSON
J. there must be orderly liquidation
and
than
extent
Surplus
be
level to realize fully and completely
the opportunities that lie before us.
we are heavily engaged in the
tools and dies for new models, our
manufacturers will introduce completely new '57 models.
We shall be tooling them up during 1956 to a greater
projected
of
solved
problem is nation-wide in
busi¬
Since
way
be
at the management
D.
business
1956
nomics
and industrial
leadership, it represents a ringing
challenge of responsibility. It calls for increasing skills
JOHN
industry.
perity.
I hope that, as in the
past, these
problems will be approached from
a
bipartisan standpoint as the eco¬
should
ahead
year
a
with few exceptions
legislative outlook, on which I have been asked
comment, envisions Congressional actions which will
broaden the present Agriculture
Act, permitting a more
hard-hitting attack upon the elements which prevent
the people of agriculture from
fully
sharing in the nation's general pros-
all
on
have
business of making
■
The
banking pro¬
advantage of
parts.
made
some diversification by industry, how¬
fortunate variation in the types of prod¬
ucts and services that we produce and sell to the auto¬
Secretary of Agriculture
ness
Even
EZRA
a
In addition to
'
.
have
we
ever, we
glass facilities at Charleston,
La., are operating at full
Shreveport,
'
-
is
our business,
both in tools and products, is still keyed
heavily to passenger cars and trucks.
some
■
Corporation
some
progress in diversifying
from the automotive industry, the largest part of
away
subassembly
;
,
slightly
precision-ground parts, metal stampings,
cold-forgings,
and powdered metal
In the
•
to cope with the demands which will be
made
phases of their services.
(1)
and
HON.
technological advances related to its activities. Bankers
are
better equipped than at any time in their
history
a
use
or
-
booked
that business will continue to
are
The coming year will see the progressive
fession in the West taking
every possible
pect
lighted
;
activity has
because of over-all prosperity.
ever
aircraft
Products
dies, RB and Hercules inter¬
changeable punches and dies, and
rranK
n.
tf-snop
production parts for the automotive,
[ >
appliance, farm implement, and air¬
craft engine industries.
The production parts include
new plants and additions will add about
1,200
employees.
;
;;
;
capacity.
.
during the coming months and that the year, as a
whole may record higher levels than in 1955. It is ex¬
pected, too, that bank deposits will remain at high levels
John D.
commercial
to
generally predicted.
the total economy
on
and
While
normal
is
as
plan
major producer of sheet metal tools
are
devoted
also
Allied
to
Present indications
year and
into
to put
formerly
space
All of the LOF window
W.
rise
The
was
car
running approximately at
These
new
growing
I
Fire
a
univer¬
above the '55 level.
being made to the
twin-grinding equipment and the Thermopane plant
its
much
We
laminating plant at that
Rossford, Ohio, additions
not
as
addition.
,
population.
It
50%
a
work.
fashioned1 healthy sinews in our economic life and
pro¬
vided expanding job opportunities
for our
an
glass bending and
new
location is
preparing
of
our
in
are nearing completion.
tanks on Dec. 1.
which
production and
than in '55, but we
feel t.:at they will be down
passenger
do
trades,
polishing plant is now under construction and scheduled to be in operation later in the year.
At
accomplishments we are making in this
scientific age there can be no slackening of our efforts
directed toward persistent research.
This is an obliga¬
tion of business and industry throughout America. It is
a responsibility
enfolding fundamental research that in¬
vades new fields and applied research translating the
drawing board ideas into practical use.
diversification
furniture
and
and
the
wide
that
At Ottawa, 111., a complete new double-line grinding
replace machinery made obsolete by technological prog¬
Each new piece of equipment and each improved
method adds strength to our production effort.
Our
of the
The
ress.
West, with
mirror
for
almost
sales may be less
-
same
and to provide even greater employment.
Equally vital
will be the capital invested to enlarge plants and to
We in the
facilities,
one
tion.
pand the markets of, existing goods
Despite
the
to
been
sally prophesied, our figures require
some further explanation.
We agree
use in¬
The tre¬
has
buildings.
industry
has
downturn
A' new grinding and polishing line, increasing the
capacity of the plant more than 30%, is already in opera¬
It
is expected that funds will be chan¬
nelled
automotive
the East Toledo plant of Libbey-Owens-Ford two
1,100-ton continuous tank furnaces for plate glass,
accompanying lehrs, additional glass storage area,
auxiliary power, raw material, fuel, water and rail¬
road
in
business
by
its
who
those
Our projections have been carefully pre¬
pared and, since we are part of the
anticipated.
considerable volume of glass.
a
con¬
its impact upon busi¬
industry throughout the
and
is
homes built in recent years
new
have just finished our projections
we
definite trend in architecture to
a
stimulus
a
which take
tinue to have
ness
Allied
at
1956, based upon an increase of better than 25% in
sales volume.
Obviously, a sizeable increase in profits
for
consumer.
of glass in all types of
areas
BISHOP
H.
Allied Products Corporation
President,
Here
mendous volume of
.
1
ice needs in the months ahead.
insatiable and al¬
with
factory to
'
'
population, and
increasing
rapidly
'
FRANK
natural tiend to higher ratio
a
Employment conditions in the industry are well
stabilized so that management and workers can devote
full energy to meeting customer requirements and serv¬
higher standard of living. This
a
demand
of
(4)
in the quest
nor
because
family, larger volume of old cars being re¬
per
(3) All inventories of glass are at extremely low lev¬
els. It would require several months to fill the pipelines
Savings Association, San Francisco, Calif.
;
1956
cars
tired from service,
peak employment.
BEISE
President, Bank of America National Trust &
•
in
rate
44
page
of
}
Thursday, January 19, 1956
.
.
.
■
Leaving Detroit
our
whole economy,
it must and will share in the general
prosperity.
are
tabulated at the
1956.
and looking at the general business
*
Continued
on
page
48
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
(307)
47
—
On
January 1st,
over
400 service stations of W. H. Barber
Company and its jobbers in Minnesota, Iowa, Wisconsin,
and
the
Dakotas, started selling the branded products of
The Pure Oil
Company.
barge
for
over a
marketing
gallons, and flexibility of dis¬
tribution
quarter of
PURE distribution in this
to PURE's
Finished
a
century, the acquisition of the
facilities of the Barber Company
important
area
rounds out
which is tributary
"Be
new
Badger Pipeline into Wisconsin,
or
)
a
ing and remodeling of service stations
products from Lemont
cally through the
as
step forward in PURE's aggressive growth program.
Throughout its entire marketing area, the continual build¬
is
moved economi¬
provided,
result of the Barber acquisition.
The addition of the Barber facilities is another
important
recently acquired Lemont, Illinois, refinery.
are now
the Mississippi to marine storage and terminal
facilities in Iowa and Minnesota. This
storage capacity has
been increased by 35 million
Although PURE has been marketing its products in this
area
up
—
making it convenient for
sure
more
at
and
strategic locations
more
motorists to
with Pure".
by
*
THE PURE Oil COMPANY
■
Producer
•
Refiner •
sure
Transporter • Marketer
35 East Wacker Drive
Chicago 1, Illinois
>
■,
with Pure
'
fV
48
The Commercial and Financial Chronicle
(301)
Continued
jrom
we feel without any reservations that the
trial activity recorded in 1955 will be maintained
well throughout 1956. Increases in the birthrate,,
indus¬
fairly
family
formations and longevity require and support an increas¬
ingly higher level of business activity.
The general business tone will be helped by the need"
for eternal vigilance as a result of world affairs. The
fact that no reliance can be placed on the actions or
commitments made by many nations who exist under
A security analyst for one of the financial houses
recently wrote "As General Motors goes, so goes the
steel
The auto industry in 1955 received directly,
from the mills, and indirectly, fr-om
Some
1956
we
assured of
are
in the foreseeable future.
This is all
our
free
business
enterprise
system needs to insure continued prosperity.
ROBERT
F.
prior
Another record year in
the
manufacturers
of
1956 appears to be certain for
heavy
as
kets.
'
v..
If
the
substantial
present
backlog of White is
in
set
next
12
high record in
units.
It
would
than
more
excess
this
$600 million
of
segment
of
These old friends will, of course, not go hungry,
but for the present at least, they, like all others, will
receive less than their appetites seem to require.
With such an all-out demand and magnificent produc¬
Today
there
when
such
is
further
it.
growing
this has
been
1956,
the
been
past
This means an operating rate in the 93-95%
demand
F.
Black
for
truck
mentioned the important part that the
automobile industry plays in the steel picture. It, plus
home
building, with the various appliances now so
much a part of modern living, sparked this huge steel
output, particularly in the early part of last year.
have already
It
does not
seem
to
that these industries will
me
re¬
quire the steel they received in 1955, although this may
not be apparent for another six months.
industries—railroads, public and industrial
probably require more
And this includes rather substantial tonnages for
production will be maintained in the second half.
drop should not be great—possibly down to about
million
55
very
would
This
ton-level.
1956
for
make
combined
a
close to last year's tonnage with an
of the new capacity. And if this
easier
obtain
to
this
in
and
summer
later
the
growing
a
form of
one
JAMES
As the
of
new
maximum
trucking
the
of
state
be
local
and
equitable
means
levels
and
the
to
"e and
troubled
o
e."
should
world
On that basis,
me
if 1956 would be
as
year
dreds
of
It is
of
towns
cities
across
jams—uptown, downtown
wonder.
no
the
and
try
s
traffic
load
War II, the U.
ment
to
All
tors.
The
parent
job
the
these
are
on
unsafe for
has
S.
level
has
of
facts and
more
drivers.
than
on
decade
more
are
up
there
still to
side.
be
The
excellent
the
since
its road
Chairman,
United
Columbia-Geneva facilities at Utah.
The
plant will
new
well-known to
paying
a
annual
record,
record
in
moreover,
users.
Atlas
annual
an
Cement
capacity
of
Company's
than
more
3,000,000 barrels of cement, being built adjacent to its
Buffington plant near Gary, Indiana, was well underway.
The
National Tube Division at its McKeesport, Pa.
is undertaking plans to triple its production of
well high-strength casing to meet oil industry
plant
deep
requirements.
has
Ground
been
the
for
broken
construction
of
an
anhydrous ammonia plant adjacent to the Geneva Works
of the Columbia-Geneva Steel Division to provide agri¬
cultural fertilizer from coal
by-products.
During the past year, U. S. Steel continued its research
in
the
development
widened
of
and
new
improved steels with
the creation of better processes for
and
uses,
marked the beginning of opera¬
buildings of the new Research
Center at Monroeville. It has a total floor area of 187,000
square feet, and represents the consolidation of a number
of laboratories formerly located throughout the country.
Equipment will enable the study of every phase of the
making them. The
year
tions in three of the four
and
in
if all
of
detailed
making
all
C. BOUSHALL
in industry and finance had a
what elements in it are
us
concept of
contribute
helpfully
and
economy expand, we
the outlook. Each of us could
American
our
better forecast
its
to
devel¬
assured
more
told
are
we
development
States
Steel
1955
the
all
able
by
of
117
million
almost
civilian
demand.
on
a
Govern¬
purchases accounted, directly,
shipped.
Expectation of continued good pro¬
duction in the steel industry is based
on prospects of a high level of
pro¬
in
t^e
basic
industries
suming steel. This reflects
high
level
finished
lower
of
over-all
steel
trends
demand
products,
for
although
indicated
are
con¬
continued
a
in
some
industries.
Late
in
announced
forward
invest¬
nition
that
the
program
needs of its customers.
future
program
is based
of expan¬
pace
witn the
This expan¬
on
the recog¬
requirements
growing
economy clearly
steel production.
Market studies indicate
increase in many
a
sion designed to keep
sion
legisla¬
December, U. S. Steel
it
was
rapidly moving
with
indicate
a
of the country's
need for increased
private
demand
if
Instead,
frantically at
year.
to
be
that
see
country
by some 3%
it
expands
10
or
points over the pre¬
would
this
do
country
a
great
of good to have
all our execu¬
as to an accept¬
whatever figure
in agreement
ance
of
3%.
or
Thomas C. Boushall
promise our opti¬
mum progress.
There are those who, in seeking to out¬
wit and outproduce their competitors, are stimulating
the country to a 10 or 12% step-up annually.
If our
economy cannot safely, assuredly, and continuously ex¬
pand at this accelerated pace, it must follow that we
are one day to have a rough period of correction.
would
The
prove
current
to
outlook, if we accept all the records and
prophecies of investment in capital goods for expanded
production, and projections of goods to be produced and
a rate of growth far beyond the
desired 3% for a healthy sustained growth. In fact, the
mechandised, promises
projected plans call for a consumption of goods by the
public that will require further individual borrowing
to buy the heavier items—cars and home appliances in
particular—but also boats and homes and vacations and
trips abroad that already have stretched credit sources
to a degree unwelcome to the banks, to the Treasury
officials, and to the Federal Reserve authorities.
The
that
outlook
function
is
for
falls,
little restraint by
and
little
regard
those
for
on
end
whom
results
by those determined to blow the balloon to a still larger
diameter.
It
that while steel
our
year
tives
tons—
entirely
to
of
preceding
seem
percentage
It
Corporation
of about
established
each
advanced
deal
mental
World
ap¬
having
vious 12 months.
BLOUGH
for only about 2% of all steel
coun¬
for the
plant
Universal
of
Construction
new
opment.
Ingot production in , the steel industry, meeting the
country's highest year of economic activity, rose to a
Roger M. Biough
highway
Consolidated Western Steel Division
in its new pipe mill adjacent to
year
production
smoother
James G. Blaine
M.
duction
worked out—methods that
must dis¬
tribute the cost fairly
among all
attack
During the
could
it looks to
an
ROGER
are
ago.
methods of
new
Perhaps
^
of three
willingness to do something about it is
every
a
resists
started
work
new
highway
out
While
doubled
barely built
a
plastic pipe known as polyvinyl chloride
by acids, alkalies, salt solutions,
alcohols, and most chemicals.
we
nation's 3,360,000 miles of
streets and highways
wholly inadequate for today's modern
vehicles, and
approximately 1,700,000 miles of this network of roads
are
sheets and strip is being
of additional facilities in
and in the Chicago area.
Gary, Indiana, plant
production for nationwide distribu¬
area
commercial
of
which
over
the
highways
tion
ing
crosstown.
Experts figure that two
Pittsburgh
installation
The National Tube Division at its
started
it
For the
development
nation
of stainless steel
by the
governmental economists, we in
America could find a very satisfy¬
are
and
the
As
economic importance of the
and
Production
and
is
traffic
brought into production
Camden, New Jersey.
increased
vital
be
for American business.
country's
only beginning to be realized by the
general
public. Their faults are well-known.
Every day in hun¬
roads
the country.
across
of the country's most modern container plants near
one
more
basis
and
during 1955 continued to modernize and
President, The Bank of Virginia, Richmond, Va.
no
construction.
The social
Steel
basic
this
their
legislation
early
S.
U. S. Steel Products Division
An prognostication about business
in
all forms
preserved
coordinated program for
urgently needed
a
that
degree of usefulness and efficiency.
industry, this
U.
12
system
production prior to final completion
expand its facilities
Co. of New York
there has
begins, it is essential that
year
additional
some
THOMAS
Trust
'
transportation
our
in
of the program.
Chairman of the Board, The Marine Midland
transportation could survive and do the job
without the others.
is
BLAINE
G.
specific demand.
in the public mind
awareness
plant by plant, the additional production obtained
expected to be about 2,500,000 tons. This new capacity
should be completed in two to three years, and result
vary
making and producing of iron and steel from raw ma¬
terials to finished products.
months of the year.
V.
....
taking place, other forms of
a
in
capacity of steel-producing plants
are planned through various changes and
improvements in facilities. Although the increases will
'<■,"
1
what
Robert
of record freight traffic,
year
facilities
double its facilities.
ingots.
also
been experiencing substantial gains in their
freight vol¬
ume and in their services
during the past decade—each
In
various
high in steel production with more than 60 million tons
transportation—rail, air, water and pipeline—have
form expanding because it satisfies
of
produce small diameter pipe in addition to natural gas
pipe up to 40 inches in diameter.
Gerrard Steel Strapping Division announced plans to
pattern should develop, steel will, of course, be some¬
.
all
half of
annual rate of 90-92%
service.
While
first
the
for
improvement
an
of U. S. Steel
task.
pace, I believe, is too rapid for any appre¬
slowing-down before mid-year.
Therefore, the
first six months of 1956 should establish another new
over
the
least
easy
The
are
of
an
a
ciable
total
use,
evidence
at
If ever there was a time
short-range prediction appeared safe, this
be
to
seems
a
approximately 10,200,000 trucks of
of which more than 1,000,000 are the
large heavy-du'ty vehicles. Contrast this with only 5,000,000 trucks of all types in. use in 1945 and we have
in
forecasting
tion,
1954
and—more than double the 37,330 units registered in
1949—graphically illustrating the growth of the truck
transportation industry in recoct years.
all kinds
ex¬
pie.
The
truck-pro¬
increase of 35%
an
Without
seen.
ever
all steel consuming indus¬
tries are asking for more. Fairly recently the railroads
have sought generous slices of the already carefully-cut
ception,
steel
ducing industry.
In
units, the healthy figure for
1956 would compare with estimated
registrations of 79,300 vehicles in
1955,
have
we
tnrough
area.
are
in the maddest scramble for tonnage
steel.
of business
the
of
the steel industry itself, which is embarking on a new and
sizable expansion program. While these demands should
fill some of the gap, I do not think the present pace of
represent
.
ago
year
The heavier
will
months
new
a
80,000
for
the
fore¬
construction and machinery—will
is quite possible that registrations of
heavy-duty vehicles in the 19,501pound-and-over gross vehicle
weights produced by all manufac¬
turers
cars
ordering
steel is inconsequential, buyers
Joseph L. Block
are
Further increases in
defense
and
progress
order
criteria, it
any
the
Today, even though production is
at an all-time high, no war is in
I
- duty
over - the - highway
industry in general continues to
pour out a record volume of goods that must be trans¬
ported to expanding consumer mar¬
tractors
tons
that
any,
a
has already been started on this
Plans
proces¬
passenger
records.
plant, bringing it to about 2,260,000 tons.
project.
being formulated for increasing the ingot
capacity in the Cnicago area by approximately 1,500,000
Work
all
of
Few, if
casters had the audacity
to predict such results.
range.
BLACK
Chairman and President, The White Motor Company
trucks and
million
8
Geneva Division
of
favorable climate for
a
various
produced,
and
steel output
approximated
117
million
ingot
tons, both industries smashing all
in favor of 1956. Many
lines were not operating at their peak during the early
part of '55. This is particularly true of our business.
We got off to a very slow start and our volume for the
first part of this year should be much better than it was
at the beginning of '55.
Any effect that politics might have on business should
helpful. This being an election year, both parties
will be in a spending mood, striving to maintain a
lavored position with everyone, including management.
I think tney have learned the lesson that good times can
be brought about and retained through a good, strong,
healthy business climate with less trouble and expense
than trying to
buy good times through government
pump-priming. As a matter of fact, recent leadership
in the Democratic Party has declared a pro-business
attitude which is a particularly favorable sign for 1956.
It would appear that regardless of which party wins in
and
one-quarter
were
There is another strong factor
be
about
sors,
steel made in the United States.
continued betterment.
our
warehouses
the
allies maintain a
very strong position both offensively and defensively,
with emphasis
on
active research into all areas of
science, the results of which may be routed into peaceful
for
truth to his
There is, of course, much
industry."
observation.
it necessary that this country and her
use
Steel Company
President, Inland
different from our own makes
so
the Chicago area and in the Western
Currently an expansion of about 380,000 tons
of ingot capacity is being undertaken at Geneva, Utah.
This will add about 20% to the capacity of this Columbiamarket.
picture,
conditions and theories
will be needed in
L. BLOCK
JOSEPH
46
page
Thursday, January 19, 1956
...
would
be
well
to
strengthen the thickness of the
will
markets, major increases in production
Continued
on
page
50
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
(309)
49
H
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:
*v* ■■•'•'.
/n Sound Room of the David
Sarnoff Research Center, Princeton, N. J., RCA tests
one
of the loudspeakers used in
new
high fidelity " Victrola" phonographs.
i
RCA creates
in
In this
The
room
you ccm
hear
a
can
pin drop.
make
so
sure
range
of audible sound. Here is
music
than you've ever heard
with
i
reproduced sound matches the original
as
closely
Thus
as
a
born—and
time in
brought to
new
"Victrola"
high fidelity is
you
RCA Victor
for the first
Orthophonic
phonographs. Listen! Here is
distortion-free performance through the
deep-throated lows
The skill behind
kind of
RADIO
FOR
and
high fidelity
room
more
before,
winged
new
Orthophonic
"Victrolas" is inherent in all RCA prod¬
ucts and services. And
continually, RCA
scientists strive to open new frontiers of
"Electronics for Living"—electronics
that make life
CORPORATION
ELECTRONICS
of
highs. Here is the ultimate in high fidelity.
possible.
new
kind
new
the silence of this
jagged walls absorb alien noise
that delicate instruments
a
LIVING
happier, easier, safer.
OF
AMERICA
New Orthophonic High
Fidelity "Victrola" Phono¬
graph, $129.95. 3-Speaker Panoramic Sound Sys¬
tem.
Mahogany or modern oak finish. Stand
(6HF5.) Other instruments to $1600.
extra.
»
»
:.
i'
:
50
The Commercial and Financial Chronicle
(310)
.
.
Thursday, January 19, 1956
.
V
V.
Continued
balloon's
it to
from
IIARLLEE
48
page
As
(our over-all economy) before we blow
cover
in 1956
tween
rapid
our
thickening of
industrial
financial executives,
as
well
govern¬
flected
The
nation's
billion
family
rate of home furnish¬
appliance
sales
during
most of
1956, with the possibility
of
a
leveling off period the lat¬
ter
part of the year.
Inventories
are
now
at
a
peak — no spec¬
ulative buying is necessary.
Prices
are firm and we expect them to re¬
be
do
We
so.
feel
not
March.
Dealers who
chould
They
investment
in
approach
inclined
19^5
to
factors
not
now
BOWERS
Secretary-Treasurer, Atlantic, Gulf & Pacific
The
Eisenhower
Administration,
it
Co.
realizes
appears,
amcunted
during the past several
is not
years
con¬
to
with other national growth
present and future needs.
This conclusion is sound:
riers
being
are
built
If
added
served
of
arm
its total
national
asset,
waterway
cost
system
date
and
all
being
of
today
defense; it is also
link
in
the
an
indispensable
the legislative
outlook
is
more
results in continued
the
i :iat
more
new
action,
our
country will be benefited
dredging industry along with it.
It
is
certain
development in the
-♦1
■
MORGAN
B.
past
life insurance
to
ing
•
was
volume
times
This
BRAINARD
seen
new
the
life
record
insurance
levels.
The
of
industry
fociety
ro
in
the
past
years
,
As,
we
which shows every
fign of continuing at its present
high level, we in the life insurance
just
free
power, and
more
the
¬
Sen.
standpoint
of
Styles
economy
as
a
are
revenue
we
as
domestic
indis¬
an
spending resulting from
from the
budget
to
a more
with
an
an
in¬
unshackled
balancing
comes
debt
reduction, if we
our children,
spend the economic futures of
and then tax cuts.
The $7V2 billion tax cut of 1954
purchasing
a
wartime to
to expect that the market for this form of
coupled
prosperity of
enterprise competitive system.
not
arm
was
for the transition from
peacetime economy.
With the transition
accomplished so successfully budget balancing and debt
reduction has priority but tax cuts within a reasonable
time
are
a
Now for
menting
with
us,
a
distinct
a
possibility.
look ahead
in
regard to policy and imple¬
legislation. The cold war
therefore, preparedness is
the
over-
the
dis¬
insurance, and
proportion of state and Federal
>•;
some
I;'-
.
much-reeded
highway
legislation which bogged
Congress will be vigorously
down in the last Session of
pushed under the impetus of 3 million more cars on thn
road this year than
last, and a 1955 death on th° high¬
ways record of 38,000—more than were killed
in the
Korean
be
War.
The
problem
facing
the
find
to
Congress
a
solution to this vast
problem
bounds of sound fiscal
management.
In the field
of what
will
within
the
is
generally termed social legis¬
activity in regard to Fed¬
School Building, expansion in
Social Secu¬
rity^ benefits, and an attack on the problem of Juvenile
Delinquency with its companion problems of child wel¬
there will
Aid
fare
services
be
renewed
to
and
aid to dependent children.
I would
expect legislation to increase Federal funds for
medical
research and proposals to extend
voluntary health insur¬
ance
coverage to more persons. Proposals will be forth¬
coming to improve the minimum wage law
and to apply
the principle of equal
pay for equal work without dis¬
of
I
sex.
would
expect
additional
units
of
proposed, as well
to
Statehood, and I also expect attempts to be
liberalize immigration
restrictions
so
that
not
used
by
one
country
summation—the highlights
will be a
pushing of the
may
of the
be
is
a
still
first
be
the
applied
legislative
unfinished items
of
to
pro¬
of
the
the fiscal
Administration's
keynote.
year for business, with the wel¬
again increasing under the bene¬
competitive economy.
in all another
good
GEORGE GARVIN BROWN
plahave
happy to be able to report that
balanced budget within the fiscal year
operation,
of
over
on
Bridges
am
well-calculated shot in the
personal security and protection will continue its
present
steady rate of expansion.
The
this year, with
whether
programs
a
with the benefits of life insurance becoming
acknowledged than ever before, there is
a
concern
fare of the individual
fits of a free
busi¬
sound
a
peaks
new
widely
every reason
-
incomes expected to rise to
1956, especially from
I
our
governmental
in
After
Brainard
!
With personal
in
base.
of
have
problem
increasing public
caused
subsidy.
President, Brown-Forman Distillers Corporation
in
expect
can
crease
B.
an
1flte?n^y which will
a
an
efficient
Morgan
,
<
All.
the
by weather in its more violent
moods,
the Eastern Seaboard and in the Central
Plains States. I would
expect legislation for an experi¬
mental setup for disaster insurance
which would not
be competitive with
existing forms of
In
have experienced
tremendous reduction in
continua¬
years
is
particularly
gram
ending June 30, 1956, and the President has promised
to submit a budget which will be in balance for fiscal
year '57.
Budget balancing is being accomplished by a
passed.
asters
All
same
alleviate
last session within the
over-all framework
levelling off adjustments,
established at/the new high ground
pensable
when
tion of the dynamic growth that has
been the pattern in the
we
to
another.
and
international
or
economy
a
There
quotas
living.
seasonal
Government.
brackets.
industry look forward to
proposal
made
integral part of governmental fiscal integrity,
I have long advocated the absolute
necessity of a bal¬
anced budget as one of the first concerns of our Federal
people have moved from
lower
to
the
middle-income
an
of
as
teauis
many
In
bank
expanded agricultural plan.
Hawaiian
were
with
comes
reached.
growth, particu¬
10
cost
conditions
some
group
remarkable
which
fore, expect much of the
ness
great.
as
businessmen
policy
being
as increases in
mortgage insurance authority. There will
again
be civil rights
legislation, undoubtedly a proposal for
sta¬
ation of stability and we can, there
of
decade ago, and
insurance is
a
of the
rapidly
are
I
expect the Congress will immediately
grapple with Administration proposals for a
stepped-up
attack on the whole
problem of surpluses, prices, costs
and markets, and as a
part of the program will be a soil
crimination
The year ahead will see a continu¬
number
,
down.
PV?iic ^ous^n3 to be
FHA
again able to embark on longof expansion and the
consuming public could buy with the
stabilized
ordinary life insurance in force is double
only
Because
inflation,
of
confidence
larly the increase in the ordinary
field, reflects the dramatic economic
c hanges that have come about in our
the
continuation
range programs
policyholders passed the 100,000,000 mark.
The amount of
four
has
year
forward
surpluses
worked
once
•'•■•v.-"';■
President, Aetna Life Affiliated Companies
what it
the
on
bilization of the dollar and the halt-
to meet present and future de¬
necessary
mands.
the
is—a
1956
for
The most apt capsule
outlook.
make
an¬
-
move
can
Administration.
than enough can be saved in other directions
volume
The
I
governmental fiscal integrity. The
unprecedented prosperity of the year
just passed was mainly due in my
opinion to the fiscal integrity which
has been the keynote of the present
concept of public works
to continue harbor and channel
nual
that
of
If the Administration's
r.nd.
STYLES BRIDGES
you
on
case
constructive.
,
needs
power
happy to be
am
employment.
expenditure
greater
included again among those from
have requested views in regard to the eco¬
nomic outlook for 1956 with particular emphasis in my
l
whom
comment
Federal
requirements
U. S. Senator from New Hampshire
continuously thereafter, waterway im¬
other
table result of further depressing the
market. This
been abandoned and
has
This increase is
power
When
of high
rigid price supports was followed, which resulted in the
piling up of surpluses which could only have the inevi¬
eral
nation's
farm
h°s
—
lation
HON.
the
income
s
policy
increase of
an
of tomorrow.
provements furnish a large volume of direct and indirect
No
the
of
aware
farmer
which would bear
meeting all the
for
all
reconstruction demand for food to feed the world.
that demand slacked off, the mistaken
sales
electric
future
transportation
rystem, stimulating economic and civic growth. During
construction and
Commercial
kilowatt-hours,
preparing
for a large increase in
substantial increase will be
think there will be some resistance
ask
a
"surpluses." The farmers responded with a tre¬
mendous, patriotic effort to the wartime and postwar
some
-
and
arte
word
Sales to these two groups are expected
(lectric system,
will
undoubtedly
situation.
individual
provide
annual
the addition of 23,000 new customers
the increased use of electricity by existing
as
development would be more than
justified. But it is not only vital to
Emerson S. Bowers
an
is working with
by about 8.6% during 1956.
our
defense, which it is,
to
will
over the past ten years
the Georgia Power Company to invest more
than $308,0C0,(T0 in new generating, transmission, dis¬
tribution and other electric facilities necessary to provide
an adequate and dependable supply of powtr wit..in our
service area. Tne company's confidence in the further
economic expansion of the State is evidenced by a cont'nuation of our program of improving and aiding to
defense chain.
other purpose than
no
vital
a
our
and
The State's economic growth
improved water¬
every
Federal
the
$60,000,600
upon
well
and
a
has required
and
tation aids civic and economic devel¬
another link in
1.2
the
problem in that the
fallen off somewhat at
time when all other segments of our
economy showed
gains.
The situation can be explained with a
single
Jr.
tota
customers.
larger; high distribution costs must
be lowered; low cost water transpor¬
opment; and
way
is
an
Branch,
than 7,003 people with
billion
1954.
as
cargo car¬
larger
to
over
Administration
However, I
We
predicated
pace
meet
the
Harllee
to increase
structive and not economy; that such development must
keep
more
kilowatt-hours.
8.2%
development
of
excess
of
requested, and there will be a ten¬
dency to apply the policy of greater selectivity as inau¬
gurated by Congress last year after a careful review of
year.
a
all
to the total increase
over
billion
1.6
that the drastic curtailment of harbor and channel
j'iow
represent
of
In furtherance of keeping our
at top caliber there will be a
and I think favorable legislation, on
request,
area
given.
40| other large industries which have indicated the pos¬
sibility of locating plants in Georgia during 1956. These
include
manufacturers
of
fabricated
metal
products,
electrical equipment, rubber, paper, textile and glass
products, chemicals, machinery and a number of other
products.
Large increases were also recorded in 1955 in the sale
of electric power to residential and commercial customers
of the Georgia Power Company. Sales to resid ntial cus¬
tomers increased by about 7.5% to a total of more tnan
Bowden
C.
O.
unless
S.
furt.ier
Our industrial development staff
X'reser.t assert themselves.
EMERSON
A
The
this
$22,000,000. They will contribute greatly
the State's expanding economy.
payroll of
some
closely
it.
of
employment for
extent as money
will continue
tight and no doubt
cost more. All in all, 1956 as a year
to
in¬
figure of 2.53
anticipated this
Company.
and long
themselves
find
might
terms
easy
9%
a
forces
Foreign Aid, both military and economic, is a close
companion of our defense effort and is integrated with
1955, 77 new industrial
each with a capital invest¬
more than
$50,003, located
the lines of the Georgia Power
j
on
toward low down payments
pinched
—
armed
our
what might be termed fringe benefits for
military per¬
sonnel in the way of medical care for dependents and a
survivors benefit program.
During
effective
are
consump¬
plants,
ment
there will
increase in minimum wage,
in
of customers is
great change in spite of the
any
renewed
increase in power sales to this group
and
main
1954
kilowatt-hours.
billion
1955's high
of
ings
tr.e
over
into
program is producing.
armed forces personnel
by
kilowatt-hours
crease
integration
so-called miracle weapons that our stepped-up research
during 1935 amounted to marly 2.73
continuation
a
increased
power
Services Committee
most
am
diate
industrial
of
the
Georgia Power
Industrial
power
sales
Company.
Stores, Inc.
middle-class
increasing
steadily
bracket should assure
the
in
electric
of
customers
C. BOWDEN
O.
of
activity rose to
This growth is re¬
high levels.
tion
Chairman and President, Sterchi Bros.
power
industries
the State's industrial
new
testing and its calculated events.
*
for
for the homes, farms,
Georgia continuing to in¬
rates, the year 1956 promises to be one
of further growth and expansion for the electric industry
in the State. In the year just past,
essential
as
demand
and
appropriation for that item will be asked.
ranking member of the Armed
happy to be able to report that we are get¬
ting more defense per dollar spent than ever before in
our history.
In continuation of that policy there will be
continued emphasis on combat readiness and the imme¬
at record
crease
authorities, make long guesses as to the day of
mental
the
businesses
economy's over-all cover, while most
our
and
With
be¬
race
a
the
and
expansion
of
rate
be for
to
seems
I
President, Edison Electric Institute
thinness unrelated to the rising internal pressure.
a
Thus the outlook
increased
an
BRANCH, JR.
President, Georgia Power Company
very
Two major issues confront the distilled
spirits
the coming year.
Both,
carry-overs
from
lies ahead for the
The
sion.
first
cf
of
and
will
1955
bear
industry
significance,
heavily
on
are
what
industry in 1956.
these
Regardless
is
of
bond
the
articles being published
for
equal
exten¬
numerous
on
,
the need
bonding period extension, the
spirits industry's statistics
distilled
on
maturing
that
for
whisky
stocks
reveal
the
industry as a whole
excessive inventory prob¬
For over two years now whisky
there is
lem.
stocks
no
maturing
warehouses
have
in
Government
been
holding at a
level of 700 to 725 million Original
Proof Gallons, meaning that produc¬
tion and usage have been running at
the
same
rate.
Proponents of bond extension leg¬
islation express the feeling that the
Ueo.
uarvin
Brown
problem lies with the 200 plus mil¬
gallons produced in the Fall of 1950 and the
Spring
of 1951.
This excessive production
offers no problem
lion
since
the
industry
can
use
up
all
of
this
stock
before
much
concern
and
Continued
on
page 52
Volume 183
Number 5460... The Commercial and Financial Chronicle
THE
BUDGET DOLLAR
AGRICULTURAL DEVELOPMENT 5.0%
INDUSTRIAL DEVELOPMENT 3.8%
PROTECTION OF
PERSONS & PROPERTY
Puerto Rico's
HEALTH &
EDUCATION
amazing advances in industry, home construction,
PUBLIC WELFARE
health, and public improvements since 1940 have been
accompanied
by only
an
insignificant rise
and with tremendous
EDUCATION, HEALTH and public welfare account for half of the
budget. From 1940 to 1954 there was a gain in life
expectancy from 46 years to 64 years.
in
increases
Puerto Rico's
in the
net
resources
public debt—
available for debt
Puerto Rican
payments.
In the
past 15 years, Puerto Rico's net
overlapping Government and
MILLIONS OF XWH:
Municipal debt has risen only from $44.5 millions
to $55.9
millions,
while the ratio of debt to assessed valuation declined from
14.3
percent to 5.7 percent.
Your attention is invited to the
a
Puerto Rico has
and interest due
ELECTRIC ENERGY CON SUMPTION
KWH in 1949-50
to
rose from 411,726,648
774,933,164 KWH in 1954-55. The Puerto Rico
Water Resources
Authority, which provides this
capacity of almost 1,000,000,000 KWH.
power, now
has
a
accompanying charts, which illustrate
few of the basic factors behind Puerto Rico's current
generous
always promptly met
on
its
development.
every payment
of principal
public debt. Investors have benefited by the
tax-free yields available on Puerto Rico's public obligations.
1949/50=5100*
I?54r 55, ESTIMATED
PUERTO
UNITED STATES
GROSS
than
year
on
has
PRODUCT
period from 1949-50
the
mainland.
made
tremendous
gains. During the
1954-55, the relative increase
to
Puerto
Rico's gross
was
greater
product in the fiscal
1955 is estimated at $1,193,400,000.
HUNDREDS OF DOLLARS
Part
of the downtown business district of San Juan, Capital of Puerto Rico,
Commonwealth of Puerto Rico
GOVERNMENT DEVELOPMENT
BANK
FOR
San
NET INCOME PER
in 1955. The 1955
CAPITA rose
from $301 in 1950
to
RICO
Juan, Puerto Rico
$436
figure, while still low in the light of continental
New York Information Office
United States standards, is nevertheless higher than in the majority
of the countries of the world.
PUERTO
t
•
37 Wall
Street, New York 5, N. Y.
52
The Commercial and Financial Chronicle
(312)
Continued
from
if it
continuous
of
whiskies
will
enable
"Korean
War
chooses. In fact, the expected
so
stocks"
the
industry
these
withdraw
to
7V2
before
long
of straight
preference
consumer
Today's
years.
whisky supply is roughly 6I/2 years, a rate substantially
under that
in existence before the Korean War and
seen
nearly the
level
same
World
that existing prior to
as
The
second
tax of $10.59 per
The present
Federal excise
gallon has not only curtailed consump¬
tion, but has offered
and
confronting the industry
major problem
bootlegging
strong incentive to moonshining
a
large scale method of operation.
a
on
Consumption of distilled spirits on an adult per capita
basis
In
has
$9.00
a
In
ran
gallons
1954
This
In
the
tax
rate, it
3.18%.
gallons for the past several years.
Back in 1950, at
gallons per adult.
high volume of our own production.
during the year have been good, and the
outlook for the future encouraged us
Our earnings
to
increase
to
$0.35
the
expended $4.3 billion for distilled
1.70%
was
share
1.88%.
was
their
of
1.73%
was
buying
total
in 1950,
and
The 1946 record
In the several years
industry's share of the
with
year
a
$9.00
saw
it at
before World War II, the
buying
consumer
power
averaged
1,70%, the
the
rate as today;
same
economy
was
However, two decades
at the bottom of the largest de¬
pression period this country has
it
rides
the
crest
1955 estimated
of
Today
highest prosperity period.
our
For
billion.
If realized, the
disposable income
consumer
would;
indication
of
the
strangling effect that the current tax rate has
on
this
be
about
This
1.66%.
is
another
industry.
If the distilled
and I
spirits industry gets tax relief in 1956,
all of its current efforts in driving home the need for
such
I
relief,
look
run
for
about
at
a
$6.00 tax rate,
consumption
225
million
distilled
of
gallons.
If
relief, consumption should again
gallons.
desperately needed,
as
spirits
we
run
do
in
1956
not
get
has
customers
our
Fruehauf
Harvester.
International
been changes and
haul
There
are
shifts in the
and
of business that we
to
The "Tubular" design makes possible sav¬
ings in weight of 40% and has a lower center of gravity.
"Hot Rod," which is a streamlined six-car train of
RDC's is designed for speeds up to 110 miles per hour
The
of
between New York and Boston.
modernizing
improving
and
our
Another
manufacturing facilities-has enabled
us
to maintain our position as the
large independent
producer of
and will
Edward c
Bud<Ii Jr.
automotive body components
continue
to
increase
the
our
operation.
Among the improvements are enlarged and improved
for the manufacture of automobile and truck
the
bodies.
which have been greatly
over the
past year, are already booked to
This activity is becoming an increasingly im¬
and
drums, tool and die making and
brake
which
in
the
Denver
new
equipment indicate
ger
of
our
evaluated
enlarged
Zephyrs
drinks
of
as
.
.
.
.
.
the
";
#
years
■
-
stainless
been
our
steel
trailer which
highly successful, and
production during the
The outlook for
is
business.
for a lighter
excellent.
our
Most
we
more economical
for Fruehauf has
and
build
have
we
than doubled
more
year.
automotive business for next year
authorities
estimating
produc¬
tion of more than 7,000,000 passenger units by the in¬
dustry in 1956. We will maintain our share of this busi¬
ness, and we expect the proportion of our wheel, chassis
and tool production to increase.
The output of the Railway Division of 202 stainless
steel railway passenger cars, including 79 self-propelled
RDC's, was' better than the 1954 to'tal of 183 cars. This
are
these
the
design
and
construction
of
new
types
of
The railroads have recognized the necessity of improv¬
ing their passenger equipment, and are in the process
construction.
steel
Years
*
<
franchise of .well
many
over
1955
saw
Forecasts
a
for
growth in
The Budd disc brake continues to grow in
has
In
all
favor, and
virtually become standard on many important roads.
addition to 230 sets produced for new cars built by
three major builders, 124 sets have been sold for
conversion
Although
jobs.
our
"
defense business
1956
look
even
more
sales and bottler
promising
with
•
..
On
assets
June
of
30,
the
Budd
Diamond
#*.•■*
'
PAR-t-pak
come in a
variety
Columbus, Georgia
,
the
Fibre
major
Company as
the most important step in its diversification program.
Since that time, CDF has been profitably operated as a
wholly owned subsidiary. This operation, which provides
expansion
CORPORATION
%
.
assumed ownership of the
Continental
nehi and
N E HI
;
reached
highly valuable to us in the production of jet engine
parts as well as in other phases of the aviation industry.
franchises.
....
not
we desire, definite progress has been made
during the year, particularly in the field of jet engines.
Our knowledge of the use of stainless steel is proving
contemplated in the Can and Syrup Divisions..
1
has
large volume
*
consumer
have
throughout the country.
1;
■'"
400 bottlers representing the
Company's
diversified flavor lines.
experience
the
Royal Crown Cola, Nehi and Par-T-Pak
Jk r,
of
advantages of stainless steel where light
weight and greater strength are prime requirements and
the savings in maintenance made possible by its resist¬
ance to corrosion are now acknowledged by railroad men
proved
a
However, the importance of 1955 in the passenger car
building railway industry is not gauged by production,
by the tremendous enthusiasm that has been gener¬
in
a
stainless
our
of
of bottling know-how and experience have developed
v.-.
passen¬
large number of
a
the payment of its 71 st consecutive dividend
announces
are
improvements, we are confident
cars will be ordered. Regardless
of equipment the railroads choose we have
distinct advantage in being the leader in the use of
that
complete line of nationally-distributed soft
most
we
very bright future for this part
the railroads have studied and
January I, 1956.
Over 50
a
.
which
of the type
capacity.
portant portion of
The new design
all
a
When
business.
fabrication of highway trailer
Our tool making facilities,
*
Beverages
have devel¬
building for the Burlington. V
These and other new developments in railway
Consecutive Dividend
Nehi Corporation, makers of
we
ing accommodation for coach passengers which will be
employed
of
efficiency
facilities
wheels
important innovation
oped and sold is the "Siesta Coach," a room-type sleep¬
trains.
around 200 million
Los Angeles, Budd is building five
but we are highly gratified with
the year's net results. Our program
ers,
ated
'
transcontinental "cruise-type"
in
as
service, where high capacity and increased speed
required, the "Tubular" train for the Pennsylvania
the "Hot Rod" for the New Haven have definite
advantages.
have done for each of these custom¬
but
tax
service
tiple-stop
service, we have offered our customers a wide range of
complete high-level passenger coach trains, with a maxi¬
mum of comfort and luxury. For mid-distance and short-
division continues to operate at a profit.
strongly believe that the industry should accelerate
Recognizing the fact that the same type of equipment
would not be suitable for operation in short-haul, mul¬
between Chicago and
of
i
three different railroads.
equipment with which to meet their varying problems.
For the Santa Fe's new "El Capitan," which will run
during
quarter.
roster
amount and type
expenditures for distilled spirits
consumer
should approximate $4.4 to $4.5
industry's share of
witnessed.
ever
dividend
share
common
Studebaker-Packard,
tors,
and
have
power.
2.25%; and in the earTy post-Repeal days the share was
ago
last
quarterly
our
per
included Chrysler, Ford, General Mo¬
cniy
adult.
per
consumers
spirits.
1953
2.51
gallon Federal excise tax rate, consumption
per
1.95
was
1.87
been
it
1946
the automobile
which
at
pace
tion
sible for the
The
is that of excessive taxation.
breaking
Thursday, January 19, 1956
service.
industry has operated this year has been largely respon¬
War II.
The
record
.
completely reappraising this important part of their
At the present time, we have under construc¬
three radically different types of new trains for
of
budd, jr.
Budd Company
President, The
it reaches IV2 years,
growth
g.
edward
50
page
.
.
of
flavors!
Volume 183
a
well
Number 5460... The Commercial and Financial Chronicle
established
position in the plastics field, will be
gradually expanded.
»•
energy, we established
for
the
September, we acquired the Gamma Corp.
manufacture, sale and service of radiography
.
Senator
from
Virginia
in terms of their effect
are
this
further
is
exclusive
of
legislation
already has
more
M.
tending the Korean excise, and cor¬
poration taxes which expire March
President, Great Northern Railway Company
in
freight
volume
rates.
1956
large
these
must
territory
that the
are
will
iron
is
and
a
Commerce
to
preserve
position
Great
its
be
op¬
new year.
competi¬
Northern
is
presently engaged in the construction
a new $6 million electronic
classi¬
M.
Duud
fication
yard
that
will
substantial operating
sides accelerating the
freight movement.
be in operation the late
to
track
structure and
the
of
use
radio
on
500 hopper and gondola cars
motive power.
well
as
as
44
centralized
and
new
diesel
Earnings for 1956 will be determined largely by the
size of the crop of agricultural
products. With a larger
than normal carry-over of grain in
storage at the begin¬
1956
will
year,
it is expected that the net income for
closely approach but be somewhat less than
that of the record year 1955.
LOOMING
The
LARGER
"Flying A" will loom
larger in the
year
ica's roads and
petroleum
even
ahead-on Amer¬
on
front of
every
progress—as
Tide Water
Associated expands all its oper¬
ations
This
new
from well
to
consumer.
expansion includes the giant
Delaware
"Flying A" refinery
scheduled to go into operation late
in the year.
The symbol of the
"Flying A" has long been out¬
standing for quality...quality that
now
is
brilliantly exemplified in
today's great "Flying A" Ethyl
gasoline and in the
new
10-30 Motor Oil. This
quality will
continue, pre-eminent
as
Veedol
the Com¬
pany's refining and distribution
achieve
new
heights in 1956. \
New Veedol 10-30 Motor
Oil
gives
Octane
Highest
you
Performance,
Greater Gasoline
TIDE WATER
New York
•
ASSOCIATED
San Francisco
•
which
Committee
mileage!
OIL COMPANY
Houston
•
Tulsa
When
Harry
•'•
..■>*
F.
Byrd
•
•
Sugar Bill would extend the Sugar Act of" 1948
system
between that produced in the United States,
off-shore.
'
as
and that produced
is at present
stop-gap basis. Effort will be made to enact new
legislation before the March 15 filing date for final
a
1955 corporate income tax returns.
on
The Joint Committee
Internal Revenue Taxation has been
legislation during the
The
working
on
this
of Congress.
Social
House of
tors.
recess
Security Bill, as passed last year by the
Representatives, jproposes extension of old-age
survivors
The
insurance
bill
now
would
coverage to all self-employed
excluded, except medical doc¬
also
reduce
retirement
age
for
from 65 to 62; provide for disability
50, and continue survivor or dependent
benefits to disabled children after age 18. The President
indicated in his State of the Union Message that there
workers
age
on
of
the
propose
Union
another
these
excise
It
on
was
esti¬
corpora¬
taxes
revenue
to expire would result in
totaling $2.1 billion.
one
year
was
is
the
as
now
the fact that in the year in which World War II
ended
our debt was $268.9
billion, and against that we had a
Treasury balance of $14.2 billion, which made the net
debt
$254.7 billion.
Meanwhile
The tax law for life insurance companies
on
State
will
Finance Committee considers such
legisla¬
this, it must have in mind that the Federal debt
practically $280 billion, with very little cash
balance in the Treasury.
This may be compared with
tion
•
would be further recommendations
s
ning of the
The
his
before the House of Representatives it was amended to
allow each taxpayer and his
dependents a $20 individual
income tax credit.
The Senate Finance Committee at
that time rejected the $20 amendment.
to
which distributes U. S. consumption of sugar on a quota
benefits at
units of
bill
in
Last year when the bill to extend them
in¬
major legis¬
dealing with military
professional groups
cars
tax
Senate
and
1,750 box
life
addition
and
ultimate loss of
an
survivors benefits and simplification
women
order includes
that
as
of customs.
in
be¬
traffic control will be extended.
New equipment
the
and
Improvements
and
tions
originate in the House of Rep¬
This yard will
of 1956.
summer
result
economies
bills
for
In
lation
of
Joun
formula
the
with
will
tax
indicated
gasoline, cigarettes and alcoholic beverages.
mated last year that allowing the extra
5%
bills
has before it such other
Interstate
only part of the
order
tive
the
Commission
erative for
In
by
a
companies.
for
tonnage
A much
higher wage scale for all classes of
employees, established in the Fall of
1955, will be effective for the entire
year 1956 but any increase in freight
permitted
important
more
up
resentatives,- the
indications
movement
ore
be
comparable
handled in 1955.
rates
establish
surance
storage in Great
There
of grain in
Northern
taken
the social security trust fund.
Simplification Bill proposes improved
procedures for valuation of imports and the conversion
of foreign currency into dollars
for the- purpose-of
assessing customs duties.
year's extension of the present 52% corporate tax rate
and the Korean war excise taxes on
automobiles, trucks,
immediately by the
Ccmmittee are the so-called Sugar
Bill, Social Security, and the bill to
Looking to 1956, Great Northern anticipates a some¬
what smaller volume of
freight movement than for
1955, although revenues should be
higher due to pros¬
increase
be
to
,
pective
the
Among
BUDD
President
on
Customs
Message that the Administration
ex¬
31.
JOHN
The
The
.
The Senate Finance Committee alone
than 100 bills pending before it, and
,
continuing to investigate fields in which we
diversify our operations to insure maximum
growth and stability for our
company.
can
S.
legislative outlook for 1956 encompasses both dif¬
ficult and extremely important
proposals before the new
session of Congress.
•
Nuclear Energy
a
In
equipment.
We
U.
The
.
53
Both the Social Security and survivor benefits
pro¬
posals will have to be considered, among other aspects,
HON, HARRY F. BYRD
•
In an effort to
study and evaluate economically feas¬
ible commercial applications in the
new and
promising
field of atomic
Division.
(313)
this bill.
the Administration has
already indicated
that it will propose increases in
appropriations for mili¬
tary, foreign aid, and
grams.
numerous
v''.'7
domestic-civilian
V'7
'
7.
pro¬
:
In dealing with
any proposals to reduce taxes we must
keep in mind that if the budget should be balanced this
it
will
be
the
result
of increased revenue; not
On the contrary, expenditures are
increasing all along the line. The increased revenue is
year
reduced expenditures.
due
to unexpected
'cream"
on
the
boom
we
have been
experiencing. National income could
go down $10 billion
from its present level without
creating even a recession,
but such a reduction would cut Federal revenue
$2.5
billion.
v"'*'".
With
our
777/'
debt at its terrible
chances with increasing
heights, we can not take
it, short of dire emergency.
"
•
We have
also the so-called survivor benefits
bill,
which would bring all military service personnel into the
Social Security System on a
contributory
No
basis, revise
payments to widows, children and de¬
can
pendent parents of Armed Forces personnel where death
is service-connected, and liberalize
eligibility for death
gratuity payments. 77; "
and
the schedule for
ON
THE
ROADS
one
taxes
pose
are
be
is
more
aware
of the fact that present Federal
burdensome, but I do
not believe tax reduction
justified under
present conditions. I shall op¬
reduction until the budget is
surely balanced
substantial reduction is made in the Federal debt.
tax
Continued
on
page
54
54
(314)
The Commercial and Financial Chronicle
Continued
from
second
53
page
in
sets
the
home.
We
expect
replacement and
HARRY
BULLIS
A.
Third,
The year just ended was marked by an upsurge in our
economy which carried national production and national
income to new high levels. Business continued to invest
heavily
in
plant and equipment
spend freely for all
and
new
continued
to
carried
disposable income in
into
1955,
c:
As
and
was
take
offset
The
the
reduction
in
a
The
confidence
of
consumers
in
1956
enter
we
television
Democratic
election
national
experienced
its
the
Aside
Gross
National
public.
Some colors
television
on
are
Our candidates will have to look
headed
from
for
television,
records
new
14
the
in
electronics
1956.
industry
sales
Radio
last
is
year
million
Industry has indicated plans for capital expenditures for
1956 which will exceed the 1955 expenditures
by 13%.
"While
sales
of
increased
they do not
to
seem
view of the high
sales, the back-log of
houses, schools,
hospitals and highways. However, it does not seem likely
that there will be further build-up of inventories.
home
radios,
notably portables,
and personal sets, were excellent.
clock
radios
It
is
The development
of
in
Transistors
types of transistors and the
new
probable that Federal expenditures will remain
at about the present level although there
may be some
discovery of new uses for these devices are giving added
impetus daily to the growth of the electronics industry.
increase in foreign economic aid.
a little.
Thus it would
Exports
may
increase
spending by
consumers.
<
Incomes of workers will continue to increase and there
will be more people employed, so total personal dis¬
posable income will be larger.
'
Consumers will face
a
both
O. W.
is capable of producing and they will buy
freely, but they may not want to enlarge their debt.
economy
The
-
rate
of
economic
year, but it will still be
gain
a
may
good
be
a
year even
bit lower this
if the upward
trend
flattens out. - If the rate slows too much it will
be possible to adjust economic policies and reduce
taxes
that consumers will have more
money to spend.
'
so
American families continue to eat
very well. Although
food
purchases in
1955
represented
a
slightly
their
during
semi-conductor
a
1956
already
and
data.
In the third quarter of 1955
consumers were
spend¬
ing for food and beverages at the healthy rate of $77.5
billion annually.
,
The index of retail food prices has shown very small
fluctuations during the past year, even
though the prices
4
farmers have received for
many
declined. Processing and
of their products have
distributing costs constitute
large part of the prices paid by consumers and such
are
increasing rather than decreasing.
in
center
Consumer expenditures
for
food
will
continue
to
in¬
in 1956, because population is increasing and the
of growing children require more food
each year.
More attention is being paid to nutritional
balance in the diet.
The American housewife under¬
stands quality and she also wants convenience
and ease
of preparation.
These factors account for the
upward
trend in the consumption of
ready-to-eat cereals and the
phenomenal growth of packaged mixes which save time
large
and
number
effort
in
the home.
even
1956, and
to
ever.
II.
Increase
industry has just ended
in its history and has every
logical
of air
areas
conditioning.
acceleration
V
ductive year
reason to look
forward to another record
year in 1956. When the final
figures are in they will show a record number of over
7,400,000 television receivers manu¬
factured and sold in 1955. We
expect
about the
same number of
black-andwhite receivers will be
manufactured
in the coming year. In
television
will
addition, color
larger-
There
are
of
factors
also
estimate
ulate
sales of
There
are
further
out of five tele¬
vision sets is being sold
today to re¬
old sets which are inadequate
place
continue
be the
sales
of
and
anticipate
we
electric ranges.
indications
expansion
of
than
more
of frozen foods will stim¬
use
that
appliance
1956
sub¬
a
•
will
automatic
expect sales to be up from 10 to
we
12%.
In
short, 1956 promises to offer
and
day.
volume
1956
will
again
and
and
expects
should
electronics
new
features,
Philco
program,
expanded
of
conditions
new
opportunities for
new
phases
However, with
embodying
chandising
the
all
Competitive
the
of
in
progress
to
S.
a
and
be
the
distinctive
strong
share
mer¬
fully
&
will
continue
sooner
or
that
it
present
screens
day
or
as
Consumers will spend their
will
be
generous
Sessions
President,
Co.
•
momentum
of
peaks
Yale
about
1936.
the
We
are
very
of
long range picture.
,
1955
will
higher incomes freely and
than in 1955.
1956
;
CHAPMAN
Company
Manufacturing
which
carried
employment
output,
basic
for
the
least
at
1956.
A
first
six
continuation
of
the
to
new
income,
and
economv
family
and
industries
construction,
automobiles
steel, seems certain to carry
and
over
months
credit
of
re¬
straint and the tightened money
situ¬
ation, if maintained during the year,
a leveling off
during
should result in
the
half
last
in
automotive
housing starts,
new
volume
goods.
The
and
consumer
will
continue
economy
function
to
at
comparable to those in the
ended.
levels
just
vear
The Yale & Towne Manufac¬
turing
Company enters- 1956 with
Gilbert W. Chapman
improvement in sales and
earnings,
and,
more
significantly,
with its production and distributive
facilities, both here
and abroad, greatly strengthened.
This condition is true
overall
both
materials handling equipment business and
our
hardware business.
our
In our newest area of diversifi¬
cation—the powdered metals products
business, now con¬
fined to domestic operations—we have also expanded
greatly to meet the growing demands in this relatively
new field of
metallurgy.
handling equipment business
expansion throughout the free world.
handling plants have undergone
large scale capital improvement programs and overall
production capacity has been substantially increased.
Both for a very wide variety of industrial lift trucks and
is
now
in
active
Our domestic materials
industrial
hoists,
we see a substantial increase in sales
This confidence is based on such factors as
the
increasing trend toward automation and mechaniza¬
tion, the tightness of the labor market which is forcing
enterprises to mechanize handling operations, and
the pressing need everywhere to reduce costs of
produc¬
many
tion
and
distribution.
remaining
important
Internationally,
In
the
areas
latter
cf
regard,
cost
reduction
Great
at
&
Towne
hoists
Britain
materials
for
the
many
handling.
materials handling business is ex¬
perhaps greater than in the United
rate
a
Yale
and
of
one
our
in
and
is
Yale
now
&
producing industrial lift
Towne's
Divisions
in
both
Germany; and
through licensed ar¬
rangements,
our
equipmment is being produced in
France, Belgium, Italy, Spain and Japan.
The trend
abroad toward modern materials handling eauipment is
in its beginning stage and will
unquestionably gain in¬
creasing momentum in the months ahead.
&
Towne's
equipment business
promise
to 25%
prospects in
are
the
bright and
increase in sales this
an
over
materials
handling
on a
world-wide basis
year
of between 20%
last year.
In the lock and hardware side of
our business,
despite
housing starts, Yale & Towne
expects to reach an all-time record volume of sales. A
complete reorganization of our domestic hardware opera¬
a
con¬
confident
deflation
credit.
Townc
&
records in such
new
Yale
Our guess is that
cerns
have
these improvements
planned. Our company is spending
$6y2 million in the next two years to
about
than
During 1956, from all present indications, business will
continue
at
extremely high levels.
The tremendous
trucks
will
build two modern plants.
In short, we are not over-confident
of
users
Beneficial should do better in
panding
and faster than most
keep t.iese costs in line. Most
rather
companies continues to be in their
bring.
Last year was a year of great surprise at the upsurge of business. The
surprise of 1958 may be that the up¬
Inflation
1956.
incomes.
consumer
in
CASE, Jr.
President, The Lamson
to
James H. Carmine
in
view is that tightening credit will hold excesses
as
new
capacity comes into being from the.
capital expenditures of the last two years.
Rising wage rates, including minimum-wage hike next
March, and possible Federal income cuts, will boost
States.
GEORGE
credit, but
savings by
his
concern.
during 1956.
^growth
for
to
Yale & Towne's materials
the
see
industry offers tremendous opportunities
and
and
cash
additions
check
of
rise, and passing on these costs
still be hard.
Improvements to
plant and equipment will be required
by
standards of picture quality, small
picture
1,500,000 units.
laundry equip¬
including both washers and dryers. This field in
ment
the
1950 to about
10%, and total slightly
The greater
many
rapid
field
air conditioners during
room
home freezers
stantial increase in
the
industry sales of refrigerators will
1955 by about
4,000,000 units.
for
are
One of the
in
will
inventory
advantage of the
one
is
There is every reason to expect an
growth in this industry which has
should top
present year
We
1956
1955.
sales
for
cut
in total,
however, is fundamentally sound and
Sales
over
consumer
$2 billion below 1954.
physical plant, equipment and labor force are
bumping against capacity. In spite of the uncertainties
of
a
Presidential
election
year,
farm
income, and
whether the auto industry can again come near the,
record output of 1955, that near-capacity operation will
hard
will
rplendid general business conditions
forecast for 1956.
Second, about
introduction
slightly better than 1955.
Competition will be no less. Costs
industry in 1956.
First, production and sales
during
the past year were
nearly in balance',
leaving us in an excellent
take
the
1956 will be
vision
to
12%
increased
the
taper off
which
for
Sales of
point to another record for the tele¬
position
the
people anticipate.
several
Appliance
1,150,000 in 1955.
surge
toward
move
scale production.
with
sales increase from 195,000 units in
seen
products
the most pro¬
in
increases between four and
most
order
President, Philco Corporation
in 1956
Industry estimates of appliance sales in
CARMINE
The electronics
We expect this phase of
completely new lines of refrigerators, ranges, air
conditioners, washing machines and other appliances of
revolutionary design and new standards of performance.
appliances.
JAMES
increase
the
some
as
r.-
of
industry,
though competition for the consumer's dollar will
be greater than
to
manyfold in 1957. Philco is
largest producers of transistors in
Connersville, Ind.
for expansion
I believe business conditions will be
good in
that it will be an excellent year for the food
this
business
'
business
our
exceed
crease
expect
Philco
During 1955, Philco substantially increased its capacity
to manufacture home appliances at its new
appliance
a
costs
of
the country.
smaller
percentage of total personal consumption ex¬
penditures than in 1954, the total food bill was up
by
about $3 billion, according to Department of Commerce
We
segment
increase
of the
one
devices.
important
very
he
Caspersen
GILBERT W.
During the first quarter of 1956, Philco will open a
r®w plant especially
equipped and completely air-con¬
ditioned for the mass production of
transistors, diodes
other
has
confident
he not only bought more than ever,
production programs for the nation's defense.
and
a
been about the economic outlook that
greater activity for those companies which, like Philco,
are
in the vanguard of the research,
development and
become
problem of debt repayment in
They will desire the additional goods which the
1956.
plans for increased production of guided
radar and communications systems promise
missiles,
that further economic expansion
in 3956 will need to come primarily from increased busi¬
ness investment, investments in
housing, schools, high¬
ways and other public projects, together with increased
appear
build
to
plan.
So
Government
v
i
ment
in
Major Advance
and
My
orders and the large outlays for new
new
commitments
nest-egg against rainy days. In hap¬
pier days, he freely buys on time
payments or borrows on the instal¬
Our
sets, and phonographs were more
popular than ever. Although the high rate of automobile
production contributed substantially to radio volume,
have
con¬
he
future
cer¬
over
inventories
to
rations
himself
according
judgment of the economic
outlook. In days of job uncertainty,
he budgets himself to keep free of
conventions, and the subse¬
in 1952. History may very
campaign,
were
annual basis.
an
loans
his
to
greatest
to their attire in general, and so will their wives.
Bullis
the
economy
running in high gear, and
Product about to break $400 billion on
be excessive in
how
during the telecasts of the Republican
tainly not flattering.
A.
small
advantage of opportunities. We know
factor—
a
1957.
growth
before
Harry
makes
of creditors,
lift his level of
consumption and aid him to take
/
well repeat this year.
With color, our candidates will
have to give careful consideration to their appearances
was
with
of
quent
not
So
'
250,000 in 1956, they will have an im¬
on the year's total dollar volume of busi¬
opening the door for large-scale commercial pro¬
and
only in greater spend¬
ing but also in their willingness to
go into debt to finance their pur¬
chases.
Closer
relatively small one—in the television
Black-and-white
era
rates.
Co.
thousand offices throughout Canada,
Hawaii and the United States.
We are very close to
the consumer and help to ease his mind from the pres¬
a
though sales of color television receivers
Even
duction
expansion
brought
strong fiscal position.
reflected
Television
a
ness,
economic
about
Finance
in almost
portant effect
enlarged corporate
personal incomes, the tax base
enlarged and the increased tax
CASPERSEN
sure
Color
result of
a
substantial increase in dollar
a
sales.
Beneficial
sumers
may not exceed
re¬
increases,
wage
television
of
market.
ceived added income gains from both
longer hours and
volume
Fourth, color television in 1956 will become
1954
workers
and
and contributed to
season
preference for higher
receivers to continue. This
TV
particularly noticeable during the Fall selling
was
Thursday, January 19, 1956
.
President, Beneficial Finance Company
customer
quality
although still
The effect of tax reductions which
bolstered
better
consumers
types of goods and services.
v
trend
expect
we
priced,
Chairman, General Mills, Inc.
W.
O.
second set market to increase sharply in the coming year.
.
.
forecast decline in
tions
has been
substantially accomplished. This has in¬
of new hardware plants, the mod¬
manufacturing methods, the development
many major new lines of product, the establishment
a
warehouse network,1 and large-scale expansion of
volved
the
ernization
of
George S. Case, Jr.
of
new
erection
of
Continued
on
page
56
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(315)
55
\
new
Continued from page 5
more
mass
spectrometer, ICO times
sensitive
instrument
than
similar
any
then
Business Bpporluniiies
Inherent in Nuclear
being used to
seek out isotopes.
This, new in¬
strument was designed by General
Electric, and, when we uncovered
Energy: 0. B, Falls
tantalum,
district,
took
over
.
this
new
radioactive
was
isotope
being
in
used
of
a
systematic search of the elements
carried-
as
on
a
means
of
under¬
standing the nuclear structure of
many metals.
On
July
18,
the
first
com¬
mercially distributed
electricity
made
available
industries
world
and
was
power
for
in
use
farms
of
homes,
the
free
generated from atomic
at West Milton, N. Y. This
power
lines
distributed
was
the
of
the
over
Niagara-Mohawk
Power
Company. The 10,000-kw
generating equipment and plant
was
installed and is being oper¬
ated at
by
no
cost to the Government
General
Electric.
Steam
the
sale
While
in
it
the
General
power
installed
is
obtained from the prototype sub¬
marine intermediate reactor inside
sphere, and income from the
of electricity will
go to the
Government.
equipment
Electric
and
so
is
not
producing business,
operated
this
that it would be pos-
Continued
on
57
page
atomic
our
energy activities. For the dura¬
tion
of
the
war,
we
furnished
men, machinery, equipment, and
technical know-how and assistance
to Manhattan District
projects
Oak Riage and Hanford.
At
the
the
close
Atomic
asked
of
World
Energy
General
at
which
War
II,
Commission
Electric
the operation
over
Works
at
to
take
of its Hanford
Richland,
Washington,
did in 1946.
we
In the nine years that we have
operated Hanford, the production
of
plutonium
has
It
has been
industrial
of the
one
tre¬
grown
mendously; while the cost of
ducing it has been reduced
believably.
achievements
pro¬
un¬
greatest
of
tne
decade. Our Hanford Story is one
that we, in General
Electric, are
justly proud of, and it is a stovy
that, when it can be told, should
be
gratifying to the American
taxpayers.
(3) Also in 1946, and
across
the
Continent from Hanford, the Gen¬
eral Electric
Company established
the Knolls Atomic Power Labora¬
tory
in
Schenectady
Atomic
KAPL,
tory,
for
the
Commission. At
we know the Labora¬
have
built
the
first
Energy
as
we
sodium-cooled power reactor. It
is
in the
prototype submarine hull in
big sphere at West Milton
the
near
Schenectady. This submarine
intermediate
operated
reactor
in
(SIR)
has
most' satisfactory
a
and
a
will
duplicate
the USS Sea Wolf, which
manner,
power
launched
was
in
July at Groton,
SAR
Project,
standing for "submarine advanced
Connecticut.
The
reactor," is also in progress at the
Knolls Atomic Power Laboratory,
and will power a successor to the
Sea
Wolf
that
will
have
even
greater power potential.
(4)
The General
Electric Com¬
pany was asked
in 1951 to join in
the
nuclear
aircraft
propulsion
program, and we established our.
Aircraft Nuclear Propulsion De¬
partment at Evendale, Ohio, near
Cincinnati. There,
research and
development is going forward
the
nuclear
military
also
at
aircraft.
includes
the
some
National
Station
The
based
ence
sion,
facilities
Testing
Idaho
near
the
on
test
Reactor
tightest veil
rounds
on
plant for a
This operation
power
Falls, Idaho.
of secrecy sur¬
project.
However,
years' experi¬
four
our
with aircraft nuclear propul¬
certain that atomicmilitary aircraft can be
produced
and
will have possi¬
we
are
powered
Thus, when
Atomic
work
Power
on
Behind
Today's Miracle Machines
.
n
■
their cost.
bilities well worth
a
established our
Study in 1953, to
we
Master's Touch
in
Oil
the problems of generat¬
ing
electricity from the heat of
fission, we had 14 years
of atomic energy background, in¬
cluding the operation of Hanford's
tremendous
graphite moderated
reactors, its separations and re¬
processing plants, reactor power
plants for submarines, and work
on a reactor power plant for air¬
craft. We brought our experience
in
research,
engineering
and
manufacturing skill to bear on the
problem of power reactors for
generating electricity from nuclear
atomic
energy.
With
largest outdoor turbine plant, producing
electricity for Atomic Energy Works at Paducah,
Kentucky
,
Giant eye
which
.
kilowatts and over)
All have
of the Mt. Palomar telescope through
farther into space
man sees
than ever before...
completely automated plant,
ufacturing automobile engines
.
man¬
one
Good reason! Men who depend on
pend
on socony mobil, as a
★
machine
our
General Electric isolated
One of every six industrial wheels
common—socony
y
^
turning in the
t
.
factory,
your
can
look to the leader
farm
machinery de¬
partner in its protection.
★
Wherever there's progress
;.;
mobil's
master touch in lubrication.
..
First successful diamond-making
thing in
this
ground,
big turbines (5000
...
*
.
World's most
free world—more than half the
your
experience as back¬
activities this year
are typical of the advances being
made in this field. Last January,
•
World's
★
in motion—in
or your
your car,
home—you, too,
for lubrication.
the first
isotope occurring in nature to be
found
in
six
This was the
of tantalum,
TA-180.
Before
this
discovery,
tantalum, a metal sometimes used
in place of platinum, was believed
to have only one isotope, with a
radioactive
mass
years.
isotope
number
isotope
was
of
181.
The
LEADER
IN
MOBIL
OIL
LUBRICAT IO N
FOR
COMPANY,
NEARLY
A
INC.
CENTURY
new
identified by use of a
SOCONY
Affiliates: General Petroleum
Corporation and Magnolia Petroleum Company
i
.
.A
56
The Commercial and Financial Chronicle
(316)
Continued
from
decrease may
distribution.
in
serve
The company is now strongly equipped to
substantial degree all of the major segments
a
of the home
as
well
plans
building and heavier construction markets,
hardware retail trade.
The company's
the
as
for
1956
substantial increase, on a
volume.
Competition, of course, is expected to be even more
intense than last year, but in all our major operations,
by virtue of our advanced facilities and greatly ex¬
panded product lines, we look for a greater share of the
markets in which we are active.
In keeping with the
highly demanding requirements of a dynamic economy,
we are also
increasing the scope of our design and de¬
velopment activities under the. central direction of the
Yale Research Center, at Valley Forge, Pa.
envisage
than
level
lower
54
page
a
world-wide basis, in Yale hardware
size of
in
although
1955,
homes and by an
new
the
the
of
expanding volume of
residential construction. Manufacturers'
shown
effect
What
be more than offset by tne larger average
non¬
tendency to level off and inventories to increase
-i'.L/:probably too early to judge whether such scat¬
tered bits of' evidence are the first forewarnings of a
coming change in the general business trend. Even if
It
a
ernizing
billion dollars on the line for capital
This amount is exclusive
tooling. It includes the cost of land, buildings, ma¬
chinery and other equipment.
Next month we will break ground at Twinsburg, Ohio,
for a new steel stamping plant for making automotive
least the early part of
poration plants in Michigan, Indiana and California. This
is only the first of the new facilities we have planned to
meet the demand for our products in the years ahead
During the past 12 months the automobile industry
built more passenger cars and trucks than in any
previous year—and in my opinion this new high level
of production is not a temporary phenomenon.
CELLER
EMANUEL
HON.
Chairman, House Committee
the Judiciary
on
seen
Undoubtedly the forthcoming elections will becloud
many of the issues and much that
is said and done
will reflect this political climate. To my mind, one of
the main issues will be that of the conduct of foreign
affairs and the nature of
our
foreign
clear
a
size
in
when
do
posed
on
there
was
maintain, to
democratic
the
In
process.
deny;
these
times, both domestic and foreign
policy are so inextricably woven to¬
gether that viewing internal matters
without
relation
to foreign policy
must present a
To be sure, the debate
perspective.
on
foreign
policy should exclude
deliberate misstatement, and
rancor,
criticism
But
Celler
picture totally out of
criticism's
for
maintain
I
that
sake
the
only.
debate
of
of
which
in the 1956 Chrysler
player
LifeGuard door latches,
which virtually eliminate the possibility of doors coming
open under collision impact; safety seat belts which meet
the specifications of the Civil Aeronautics Administra¬
tion for belt installations in commercial aircraft, and
Among
uncertainty
the
from
built
temporary
recession.
of
part
nation's economy
the
has outperformed the automobile in¬
L.
L.
Colbert
year.
of
year
in
our
373,000
Another legislative battle will tdke place on the farm
problem which is perennially with
as
anxious to
help the farmers
rural districts.
That is
not
us.
as
City Democrats
are
the complete
answer,
We in Congress will face the issue of taxes.
affect
reduction of taxes if such
no
adversely
national defense.
our
that before taxes
be cut,
can
the reduction of debt.
which
taxes
is
cut will
my
belief
payment must be made
on
If national defense will not suffer
and if payment is made on the debt, I
relief should be given to the public by
excise
It
I believe
a
weigh
heavy
bracket groups.
on
believe then that
the reduction of
the low income
■
The Congress will find itself on the battle fronts of
aid to education, the issues involved in civil
Federal
rights (particularly since the
Mississippi), and also
the issue of
?
on
policy.
These will
occurrence
of violence in
a
S,
country,
cars
we are
will be continued
rise in the number of two-
the outlook for 1956 is unquestionably one of optimism.
It is recognized, of course, that an economy which is
owning
One of the clearest
was
ord.
this
rise
in
the
The best
in
of
top,
a
in
J. Luther Cleveland
fore¬
casting record of early 1955, when most analysts
greatly
underestimated the force of the
developing boom.
It is not difficult,
however, to point to some factors
indicating the desirability of conservatism in business
normal
though
not
closing months of last
experience.
To
year measured
some
extent
this uncertain showing reflects a
moderate volume of automobile sales
corresponding period of the 1954-55 model
more
year.
As
made
downward
a
it is not clear that
entirely,
considerably
than in the
For example,
seasonal
result,
for the current
some automobile
revisions
season
as
have already declined and
in
a
their
whole.
are
1955
at the
was
abcut
45%
1956
con¬
cars
sold
about
record
during 1955 by
15
million,
number
an
of
new
return
on
their
was
manufacturers have
estimates of output
New
housing starts
expected to remain at
a
debt.
they Were finding
of
were
econ¬
these
carrying
the next
At
12
demands
be
so
either for
great
however,
the rate of
as
autos
or
for homes in
the entire economy
effect may well be to help
to
turn
the
growth.
banks,
face
1955,
accommodation on behalf of institutional in¬
which is not expected to continue
on
the present scale throughout 1956.
Loans to real
estate will probably show further growth, but at a some¬
what slower pace in view of the expected lower trend
in housing starts.
Furthermore, growth in instalment
said
difficulty in
loans, which was so pronounced in 1955, is certain to
moderated substantially as debt repayments begin
be
to mount.
months.
Whether
Chrysler
well
vestors in mortgages,
some
families
as
in 1955.
porary
making their pay¬
ments.
The same survey revealed definite and wide¬
spread intentions to buy both new and used cars during
no
in
Colt
large as last year. Also, business may expand bor¬
rowings somewhat further as inventories continue to
be built up for some time ahead.
However, part of
the increase in bank loans in 1955 represented tem¬
The Survey Research Center of the
Three-fourths
Sloan
as
investment
showing confidence in the
S.
financing is expected in the early months of the year,
but borrowing for tax purposes is expected to be fully
highest level since 1951.
are
late,
their
which met record loan demands
another increase in loan requirements
in 1956, although if economic expansion proceeds at a
more
temperate pace, the prospective rise in credit
needs for the year as a whole is likely to be of con¬
siderably smaller magnitude than during the rapid busi¬
ness
advance in
1955.
Some repayment of seasonal
and
cars
of
with
The present high level
indebtedness may be a lestraining influ¬
is little evidence at this moment that the
Commercial
in
rec¬
used
ex-
much
so
weakness
ahead as
There
will
moderate
that
all-time
and
may
automobile
starts have
comparison
year
downward;
car.
estimated
ahead
contributed
some
in
decrease
strong demand
has been
of the nation's families
instalment
historical fact that business
activity has not 1
usually continued long at the very peak. It
may be due
in part to recollection of the
rather unfavorable
to
used
It
year
which
least
ence.
University of Michigan in a survey conducted in October,
found a high degree of confidence and optimism on the
part of the buying public.
These studies showed that
tion of the
up
of
while
People generally
and its future.
note of greater
expectations for 1956.
And
omy
analysts. This is
presumably due in part to recogni¬
retail trace in the
number
year.
highest since 1952 and the
accu¬
caution has crept into the statements
of many business
was
in this country is the excellent market for used
during the past
are
booming activity a year ago, and it
is widely expected that neither will do quite
have had a very good
The latest available reports on our dealers' earn¬
ings show that their average net dollar profit was the
tending to
round eff at the
the
easing in
1953.
Both
production and housing
year.
output
equal to half the gain achieved last
year should probably be regarded as
has
one
governments
rapid pace of business ex¬
pansion in
1955 may show some
Chrysler Corporation dealers
produc¬
mulated that the boom is
than
more
indications of the
very
the
to
being sold, used-car prices held firm.
total
highly satisfactory.
Recently, as iviience
cars
cars
growth geared to t:e increase in the
the
in
individual
ditions to families
a
even
mands
A dramatic recog¬
bile insurance rates would be offered under certain
business confidence at
the banner year 1955.
However, some of the key de¬
by a national group of insur¬
underwriters that substantial reductions on automo¬
used-car dealers
and
/ ceed
Re¬
multiple-car ownership
sees
prospect is that production
income
recent announcement
ance
vailed
increase
the
of
than 6 million.
COLT
1956, and Federal spending, too, is
likely to be somewhat higher. Thus,
the
for
An
local
and
in
already operating at or close to the
limit of its physical capacity cannot
be expected to continue expanding
at
the exceptional
pace
that pre¬
force
State
at
more
1956
of
start
evidenced
nition of the trend toward
SLOAN
planning further increases in public
works
and
other expenditures
in
families
the
tivity.
and three-car families.
start toward
a
high level. With personal incomes rising, consumers are
expected to continue expanding their total outlays for
goods and services.
Business intends to step up its
spending on plant and equipment.
had increased to
Chairman, Guaranty Trust Company of New York
labor
The
as
the number
owning two or more cars has increased by
about 76%. In August of 1953 there were about 3.4 mil¬
lion multiple-car families. In August of 1955 the number
American business has completed one of the best years
in its history, and the general feeling with respect to
rate
plants
States
not satisfied with our present share
and the entire company is
market,
President, Bankers Trust Company, New York City
of
J. LUTHER CLEVELAND
a
United
into
during the
highly successful future.
cent studies show that in the past two years
immigration
our
highlight the coming session.
during most of 1955.
than can be heped for is
our
confident that the growth in de¬
and strengthened. For
one thing, the economy gives every indication of provid¬
ing high employment and a high level of personal in¬
come
in 1956.
And beyond 1956 the tremendous and
expanding needs of this country will keep employment
and income high.
Another strong force helping to create new demand
for automobiles is the rapid growth of the population,
and especially the growth of the suburban population.
Recent Census Bureau figures show, for instance, that
in the past five years, while the total population of the
United States was growing by 11.8 million, the popula¬
tion of the suburban areas was growing by 9.6 million.
This move to the suburbs is a major factor in the rapid
90% parity.
but it is the best we
have been able to find.
there should be
automobiles from
for
mand
We shall support a return to
are
automobile
more progress
determined to make the advances in 1955
compared with 260,000 in the last quarter of 1954.
As we look forward to future markets for automobiles
in this
representatives of
are
We
ahead.
performance built
and
will make
we
the
of
when shipments of cars amounted to 1,238,161.
In the last quarter of 1955 we shipped approximately
policy.
panel;
beauty
comfort,
approximately 1,361,000. This is the biggest
history. The previous high was set in 1953,
—always waiting for something to turn up. Open debate
on
the subject could force formulation of a workable
the Highway Hi-Fi, a record
are
control
1956 models
year
Chrysler Corporation alone shipments of passenger
from our United States plants during 1955 will
cars
safety,
our
lion, as compared with the previous high annual value
of $9 billion for cars built in 1953.
At
cars
the
greatly improved, Center-Plane drum brakes.
We at Chrysler Corporation made good progress in
1955 and we are confident that with the new qualities
The number
of new cars built during 1955 will come close to 8 million
as compared to the previous high of 6.7 million in 1950.
The wholesale value of these cars is estimated at $12 bil¬
dustry in the past
into
innovations
other
the
Cornoration
1954
in
and
considerable
came
business
No
passengers.
postwar years, limitations
or
another were im¬
production,
amount to
Mr. Dulles is like Mr. Micawber
driving, since it transfers the transmission controls to
the driver's left, out of the reach of children and other
an
kind
one
dangerous.
area
restriction and in
or
atmosphere of general confidence. In
foreign policy of an Administration
is not only valid but necessary. I personally believe that
the United States policy in the Middle East is most
In this
haps, is the pushbutton drive selector which has brought
a new simplicity and ease to driving.
In addition, it has
been widely recognized as a major contribution to safe
performing without artifi¬
be
I
real
country. The past year has
the economy as a whole the
most other
is,
the
chance to demonstrate what it could
cial stimulus
debated
of
this
given
To say that the foreign policy of an
incumbent Administration must not
Emanuel
indication
Again this
the demand for automobiles
of
There are some who contend
that foreign policy is not debatable.
policy.
to meet the tremendous expansion of
anticipated for the 1960's.
year Chrysler Corporation has led the in¬
dustry in the number and diversity of innovations in its
new
models.
Most striking of these innovations, per¬
and to prepare us
demand
1955 for the first time we have
In
kind
its
stamping presses and will turn out approximately 300
different types of stampings to be used in Chrysler Cor¬
President, Chrysler Corporation
has
U. S. Congressman from New York
This plant will be the most advanced facility
in the industry.
It will house 28 lines of
body parts.
COLBERT
L.
plant and equipment, in the next five years
our
improvements and expansion.
of
L.
equipping new
and
our
of
it seems likely that the sheer momentum of
are,
business will carry it tjhrough at
1956 at a high level of activity.
start on
a
will put over a
we
is
tney
Thursday, January 19, 1956
long-range invest¬
ment program. The way it looks right now, taking into
account the demand for our products and plans for mod¬
substantially.
more
.
in building
done
plants in 1955 is only
orders have
new
have
we
.
.
Corporation
we
are
looking forward to
increasing demand for our products. We have been
laying plans accordingly and acting on those plans. In
the past year we have invested $130 million in expanded
and modernized plant and equipment.
Two of the most
important plants built during 1955 were the Plymouth
Engine Plant near Detroit and' the new transmission
loans in
the
prospect of a smaller increase in bank
accompanied by an easier tone in
1956 will be
an
plant
which
at
Kokomo,
went
acclaimed
as
in existence.
at
the
into
the
Ind.
The
Plymouth
production in July,
most
advanced
Engine
Plant,
hasl been widely
automotive
plant
now
Pilot production of automatic transmissions
Kokomo
plant started
in November, only
months after ground breaking last March.
eight
the money
,
Reserve
strated
market will depend, on balance, on Federal
policy.. The
their
nomic
growth that
business expansion.
dustrial
authorities in
awareness
of
the
1955 have demon¬
dangers
to
stable
eco¬
excessive pace of
Already, steel and other basic in¬
accompany
materials have
an
become scarce, skilled
labor is
and the index of industrial commodity
prices has risen to all-time peaks. With many indus¬
tries operating at capacity, any important or sudden
increase in demands could well have sharp inflationgrowing short,
Coniinued
on
paqe
58
Volume 183
Number 5460... The Commercial and Financial Chronicle
Continued
from
At the present
55
page
and
of
size
time
use
of
atomic
the
peace¬
per kilowatt, while the
building a conventionally
steam plant of the same
would
be about
kilowatt.
$150 to $175
Many
individual
ess
items in each plant cost about the
water.
nents.
However,
in the
power
same, since certain apparatus is
constant, regardless of the energy
deep source used. But some of the com¬
belief on the part of the
Company ponents for the nuclear plant are
that the generation of power for
presently very expensive, com¬
free world in the earliest
possible
time. This was fostered bv a
there
are
things which could
differences
and
several
reduce
produce
a
these
down¬
ward cost trend. Among these are:
(1) Using the maximum size of
utility use from a nuclear source
is
extremely important to our
to somewhere in the
However, this cost differential
existing conventional
power plants is not expected to
gr;eatly hinder the beginning of
our
atomic power program, be¬
cause
of the /future
advantages
which will accrue to people who
are willing to pioneer in the field.
in favor of
.
(4) Other improvements in fuel
technology, waste handling, test¬
ing
procedures
and
safeguards
will also help to bring the initi¬
ally higher costs within competi¬
tive range of conventional plants
The
outlook
increased
is
bright
installation
Continued
for
on
page
As
Canadian
General
will
pany
Canada's
plant.
Electric
design
first
build
atomic
This will be
Com¬
and
electric
$15
a
experimental nuclear
sites
Plant
million
power
sta¬
be
broken
need
every
tion,
producing
20,000
kw
of
electricity. Ground will probably
this
year, with com¬
pletion of the plant scheduled for
1958.
Also, this past Spring,
the
nounced
we
General
an¬
Electric
Dual-Cycle Boiling Water Reactor.
This new design will be able to;
produce
several
in
power
times
given
a
much
as
size
At Erie,
its
as
generating
costs
of
steam-power plants.
;
Then,
Gale,
March
on
nouncement
was
Chairman
of
Has 10-inch
ordinary
•
■
31,
made
the
Board
Canada's industrial centers.
of
.
C'ommownealth
that
Edison
Commonwealth
Company,
Edison
had
to be
to build
the
prime
U.
full scale nuclear power
a
a
acres,
of Canada and the
S., and
River,
contractor
means
Excellent rail connections to
all parts
selected the General Electric Com¬
pany
already installed. Right beside
C&O classification yard, which
One of the fastest-growing of
an¬
Willis
by
on
pipeline to Lake
plant
Erie and softening
At Sarnia, Ontario
;
an
Michigan
Between Detroit and Toledo.
predecessor, the direct boiling re¬
actor, and approaches competitive'
suit
the St. Clair
fast freight service. 913
will be divided to
purchasers.
part of the world's
busiest waterway system.
plant
in the Chicago area, using
the Dual-Cycle boiling reactor. It
Unlimited water. Salt, natural
will have
gas
electrical power out¬
an
and other
put of 180,000 kw, and will be the
world's largest all-nuclear power
A
plant.
water
raw
materials.
variety of sites available,
some
with both rail and
Commonwealth will be joined by
frontage.
•
the other members of the Nuclear
Power Group in
carrying out this
be completely fi¬
private capital. The
project. It will
nanced
by
Pacific Gas and Electric
\
Company
Bechtel Corporation—both
San Francisco — are members
and
of
of
the Nuclear Power Group. Bechtel
is
working
for
General
Electric
architect-engineer in construc¬
plant.
Today's status of the project:
the
contract
has
been
signed,
preliminary approval of site has
been
given - by the Safeguards
Committee, and the AEC has in¬
dicated its willingness to issue the
necessary license
to begin con¬
What do you
age,
need? Tell us just
requirements are in acre¬
labor, water, fuel, proximity to
raw
materials and markets. A staff
as
tion of this
struction.
We
At Fernald,
Ohio
what your
Just west of Cincinnati with a
plentiful supply of skilled labor
C&O has 88
acres
alongside
of experts
will select suitable sites
for you an informationpacked survey. Your inquiry will
be handled in complete confidence.
tracks with more acreage
and prepare
available. Level land. Ample
Utilities.
water. Good roads.
thus, bringing our 16
years of nuclear experience into
the
development of atomic re¬
actors, for electric power. While
we go into the development of the
dual-cycle
boiling
reactor
for
Commonwealth, we are continuing
our
study of other reactors—for
are,
which
in
we
feel
the
there
small
is
a
Address:
:,
Chesapeake and; Ohio Railway,,
Industrial Development Department
Cleveland 1, Ohio
future
>>&//&
plant
reactor and in large-scale reactors.
both
Nuclear
power
Energy Uses
Although we can be sure that
there will ultimately be major ap¬
plications of nuclear energy for
transportation, for heating, and in
chemical processing, there is lit¬
question but that the greatest
presently foreseeable application
will be in the production of elec¬
tric power. Our forecast on the
percentage of new g e n e r a t i n g
plants, added to utility systems in
the United States'which will be
tle
nuclear-fueled,
low
We
At Richmond,
The
new
Virginia
Airport Industrial
District. Within Richmond
DETRblT
switching limits and adjoining
Byrd Field. Ideal distribution
center for Virginia, Maryland,
Carolinas. 200
acres
in
development. Ford Motor and
Allis Chalmers have
here
now.
ASHLAND
plants
_
starts out with a
figure of around 2% in 1965.
estimate that there will be
substantial activity after that, re¬
sulting in 14% of the plants going
in service in 1970 being nuclear.
Our
analysis indicates that once
plants become competi¬
nuclear
theyr^yill expand rather rap¬
idly—increasing to 65% of new
additions by 1930.
tive,
will
will be
the cost of the nuclear plant in
relation to the conventional plant.
One
of
the
factors
Chesapeake and Ohio Railway
which
affect this rate of growth
VIRGINIA
•
WEST VIRGINIA
•
KENTUCKY
•
OHIO
SERVING:
INDIANA
•
MICHIGAN
•
SOUTHERN ONTARIO
'
the
nuclear
of
national interests.
announced on March 25, 1955
by the Government of Canada, the
57
shortly. By 1980, the cost of a nu¬
clear plant is expected to decrease
neighborhood
of $145-$165/kw.
plant. For example, and greatly reduce overhead costs.
(2) Development costs—initially
$45/kw, while the
steam
boiler
usually costs less high for a few units—can be ma¬
than $30/kw. The feedwater sup¬ terially reduced
and should be
ply system is twice as expensive distributed over a larger number
for a nuclear plant as it is for a of reactor projects.
steam plant, because of the very
(3) Higher quantity production
high purity required of the proc¬ will reduce the cost of compo¬
$270
per
demonstrate
achieve unit economies
the reactor costs
fueled
Energy: 0. B. Falls
can
conventional
atomic
cost
to
pared with their equivalents in a reactor
time, and probably
building an
power-generating plant of
the boiling reactor type is esti¬
mated at somewhere between $200
until 1960, the cost of
Business Opportunities
Inherent in Nuclear
sible
(317)
59
58
The Commercial and Financial Chronicle
(318)
Continued,
from
repercussions.
ary
tension
bility
in
The
critical
to
not
this
maKes
Sufficient
continued
large
restricting credit beyond what may be
lequired to help curb excessive borrowing and spend¬
ing; they may be expected to relax their present policy
as scon as economic
pressures give signs of easing.
The
past year was one of almost continuously tightening
unless
a
in
fluctuations.
have
not
1956
sales
action
recent
Reserve
Board
discount
rate
business
downturn,
measure
taken
to
insure
in
the
of
indicates
in
the
fear of
tions
times
the
diffi¬
Even
culties which business faces
are
'
There
tnose
dollar
better
earnings.
The
in
office
auto¬
Undoubtedly these prod¬
continuing stimulus to business activity.
Since many industries are already producing at close
to capacity, there may not be such spectacular gains as
those registered in late 1954 and 1955. Nevertheless, the
outlook for the coming year is bright.
SIDNEY
B.
Most
the
are
banking
1955, which
1956 to be a recordin total economic activity. If those ex¬
as
realized, it also will be a banner year for
business. Banking is thp handmaiden of
trie
it
of
customers
progress,
follows
banks
too
so
prosper
the
does
and
r
■
(
this
point.
It
in which the over-all
year
new
with
strength
outstanding
automobile
dustries.
of
the
the
The
nomic
the
demand
bring about
rates.
question
a
play in
to
Banks
bene¬
business
picture
expansion in the
for
in
that
the
1956.
role
as
of
to
credit
in
C.
1955
and
must
that
if
is
curtailed,
the
year
Some
thorities
Little
in
to provoke
"tightening
money."
decline in business
a
shut off the
extension to
the
volume
physical
In
an
of
economy
a
business
is
agriculture should
bargaining laws that protect labor's in¬
for industry, the Government } mate
tariffs
that
assures" profits
utilities,
for
various
C.
P.
explicity, there
a
are
these hard facts proving why
farm program. '
."/-'j".",;
>
a
crop.
Farmers have
no
without government help. And
well-planned
program
their
(2)
even
with the help of a
is uncertain,
in
the
the farm
gone
in
back
the
goes
to
have been at
This
may
the decrease in the number of farms.
area
enjoys the highest prosperity of
in the United States
drought
areas.
homes,
nor
the
General
is
at
as
be
higher
time re¬
any
attributed
to
Undoubtedly this
any
farming
area
it has suffered neither from the
depression
that
have
afflicted
other
business, including the construction
the highest
level
experienced
and
of
gives
promise of continuing at that level throughout 1956.
into
market
places and asks: "What will you give me?"
might be well to ask how long the free enterprise
system would survive if in industry, as in agriculture,
the factories produced for a full
year and in one brief
period, as in agriculture's harvest season, put all their
(3) The needs of consumers and the safety of the
country require huge agricultural supplies on hand be¬
yond the food and fiber currently being consumed. But
this very abundance—this
safety margin against crop
farm
are
'
program—is the
accumulated goods and wares at
auction, not at prices
fixed by management but at prices the customers would
bid.
;
May1 1, 1953.
felt
a
It
which is the
in .this area,, is
not
,
Agriculture—in the absence of
only industry that does not set its prices but
.
gain
prices of farm land
cently.
way
production
;
•
failures
is
or
known
other national
as
"surplus"
or
in
international emergencies—
market places and will
the
program
than they
Conrad
fair
other National, State
modify or soften the hazards
working and doing business.
perpetually depress the farmers' prices, without
The
are
activity at current
operating at virtual
why
Sunshine.
deficiency due to lower prices is
made up through increased volume.
au¬
are
ask
prices for farm products. Apparently
con¬
capacity, any excessive use of credit contributes to
rising prices rather than to larger output.
It is important too to note that the
volume of new
loans being made is at a high level
despite the wide¬
spread impression that credit is in short supply.
In
is
a
other
measuring what should be their individual contribu¬
tions .to a balanced! national supply of food and fiber,
the
not trying
they trying to
Rather, they are striving
quantity which will sustain
which
has
them
all
ciation of farm income due to lower
supply of credit.
to limit credit
levels.
They
nor
It
effect
afford
being subject to the seasons—rain, hail, wind, pests, and
implement business from the depre¬
economy
on
this point is afforded by
objective of the monetary and fiscal
reassurance
ago.
the peak levels of
that
parity with
of
industry,
business
people
stopped in the midst of
has been corresponding and the labor
force is now slightly greater than a
economy
decline.
sidering the
;»• v
approximately 20% over the previ¬
ous
year.
The gain in employment
credit conditions may
discussions of the outlook
extension
The
1954.
principal
year
credit
in
a
(1) Agriculture alone among the major elements of
our total
economy has no device, outside of the aid of
Government, to pattern its production to market needs.
A factory can be shut down in the middle of production,
to adjust to a changing market, but farming cannot be
the Quad-Cities and in the general area
by Iowa-Illinois Gas-and Electric Company has
continued at the high level maintained
throughout the
year. It is expected to be between 5% and 10% better
part
In
coming
of
CONRAD
implement
on
'
the
making
Business in
than
living,
trade laws for business, and many
lines at retail level will continue
P.
incomes
ernoy
and local laws intended to
likely to
satisfactory level.
a
the cheapest.
was
are
of
non-famn
collective
come,
served
the
the
and
appears
our
collapse of the agricul¬
a
One answer, of course, is that this treatment is not
special but is similar in principle to the minimum wage
Chairman of the Board, Iowa-Illinois Gas & Electric Co.
they made
mortgage
credit needed to operate the
the
is
that will
any special treatment—a farm program. * I think
it is important right now that all of us understand why.
keen and operating costs and break-even
points
probably increase slightly. However, with some in¬
crease in volume
expected, the over-all earnings for 1956
should not show much change from 1955.;
"
'
'
standard
there must be
income
farm
program
a
have
'
.
.
farmers
our
Many
be
loans
capital,
working
■*
economists
Americans.
will
in¬
eco¬
affect
that the sharp declines of
may have to level out to some ex¬
We expect volume in farm areas for our lines of
that
these
adverse
matter of record that
a
decent
rates ard fringe benefits in
that
self-interest cf all of us, city peo¬
farmers, to support
longest when food
that
be passed on fully or
can
indication
no
fact, some
have included expressions of con¬
over
"tight money." The reasoning has run that
economy is based on a large scale use of credit
for the
our
the
consumer
important
poses
cern
the
of
to
the
benefited
an
as
catastrophe in Agriculture.
a
More
is
There
statements
showed
goods,
through tne
the present free spending mood of the
on
at peak levels.
economy
The
contributed
much
and
money
broad
in
credit and also helped
increase in the average level of interest
an
Banks
provided
a
strong
was. a
building
both
achievements.
as
produced
Sidney B. Congdon
system
contributed
and
fited
banks
these
Competition in
high ground
year-end
nation's
banking
from
home
and
not
merchandise to continue at
economy
surged upward into
or
restraint
a
tent.
t,
of
wage
of
teiling us now that farmers no
longer are important to any large degree in the pros¬
perity cf the general economy, because they are so few.
But, I doubt if many Americans want to risk a general
depression to t:st the point. Moreover, I am convinced
that city people have a sense of justice that demands
are
although it
the past three years
The past year affords an excellent
illustration
have
well
Some
consumer
available
,
increase
banking
system.
been
public.
when
that
would
Department
economy preceded the great depression of
the
1930's. and we knew that breadlines in the cities have
in part
to the consumer is questionable.
Present sharp com¬
petition tends to limit price increases at the retail level.
However, such increases as are passed along could act
Cleveland, Ohio
and
It is
likely to continue in 1956, we anticipate
price increases at the manufacturers' level.
moderate
CONGDON
business
industries
Due to increases in
business observers expect
pectations
other
and
becomes
from
come
•
tural
saturation point
a
as
prevent
Connor
E.
much longer this tre.'.d
protect their loans.
President, The National City Bank
breaking year
P.
present personal debts would intensify iis effect through
decreased collections and actions taken by creditors to
Whether
of
that
figures
anl
I think it is to the
ple
business conditions generally, and the size of the
upon
a
'
-
automobiles
of
market
a
related
and
mation should be felt strongly.
ucts will be
is'
getting nearer to
are
facts
by people in the cities, for their representatives in the
Congress have the votes to sway all legislation relating
to Agriculture. - -,stA
■*"'
Statistics indicate that
personal debt is in the field
of automobile paper. Other forms of personal debt seem
to have retained a fairly normal relationship to income.
Any serious decline in the production of automobiles
products developed through
new
in the fields of electronics and
to
We
Cooley
Whether we can prevent a catastrophe in Agricul¬
ture, and bring to farmers a fair share in a prosperous
econcrny, is a question that will be answered largely
the bulk bf the increase in
equipment industry—and, indeed, in all
increased research
|
present relaxed credit standards.
States has benefited and should continue to benefit from
the
sale
the
even
United
the increased trade.
industry—the impact of
continue.
D.
consumer
These
A part of the
and it is questionable how
debt
can
Harold
Agriculture records.;
local
and
for this
53%
by
the food and fiber between the farmer and
has skyrocketed.
These marketing costs
have increased by 83% since 1945.
the
the
of
up
While farm income has deteriorated the cost of moving
op¬
building
State
are
and handling
sufficiently to of-set this de¬
present record production figures
been generated by the sharply increasing personal
has
showing greater willingness to spend dollars—a clear
their
Home
net
crease
to be some distance away, European countries
of
as
52% between 1947 and
corporation dividend
by
pr-H^d.
government expenditures should in¬
cline.
Farm
the hourly earnings of
workers in¬
payments
over
levels that
optimistic cut-
Federal,
;
reflection
quite
aspects
the
1956.
economists.
production
and
1955,
income
personal
certain
temper
but
1955
John S. Coleman
activity is also en¬
Striking advances in production by Western
and Latin America, together with significant
progress in Japan, India, and the whole Far East, have
raised trade to higher levels.
While convertibility still
In
for
below
decline
increasing, and farmers' pur¬
creased
should
and
not
are
38%
was
substantial
predicted by Department
Agriculture
In contrast,
expected to be lower than it was in
Europe
are
to
look
couraging*
appears
We
are
tend
trade
World
in
made
are
is
1956
industrial
opti¬
relatively
present high production
of prosperity: a shortage of skilled
labor,
material
shortages,
tight;
money,
and
transportation
bottle¬
necks.
increase
timistic regarding the second half of
1956 but believe that the year as a
whole will be as good as 1953.
a
prosperous
stability.
production
rates.
tax
a
rather
no
but is
is
1956
for
show still further increase if redac¬
re¬
V
power, in terms of 1935-39
dollars, is the lowest since the great
depression.
CONNOR
Disposable income is expected
on
the basis of h'gher
industrial
Federal
raising
fair
a
further
A
debt is
increase
to
have generally increased at an even
faster pace.
The
in
cf
high
show
to
1955.
inventories
moderately,
1947.
employment, high personal income
publicized expansion plans for plant ar.cl
equipment, we expect our volume in the first half of
to
new
.
;
farm income in 1955
whether
the much
and
short-term
Although
increased
liable
so
of
case
With
mistic.
labor—that
chasing
E.
outlook
immediate
Carolina
industry, business and
likely to be set.
:
are
major recession. '
President, Western Auto Supply Company
Our
COOLEY
North
The average of farm prices is down
29% since February 1951, and net
stable prosperity,
P.
Industry is planning expendi¬
plants and equipment which will appre¬
exceed the 1955 expansion outlay.
These are
plans,
a
loans and a
requests .for
be in boom periods
never
can
D.
Agriculture continues to sink into
existing
Not all
on*
saving.
of
to court inflation. But borrowers,
are
permit
to
HAROLD
Congressman from
for
year
records
home buyers or businessmen, can
rest assured that every effort will be made to meet
credit requirements that appear essential to preserving
new
curtailment
boom
Loanable funds will come in
repayments
level
1956
in
S.
The cutlook for Agriculture in 1956 is bleak indeed.All the forecasters are saying this will be another
•
they be consumers,
record year for business.
ciably
long-range
available
be
business.
from
high
we
President, Burroughs Corporation
for
will
credit will be filled—that
On every side there are indications that 1956 will be a
tures
credit
COLEMAN
S.
U.
prewar
good
part
continued
credit, but it would be surprising if this trend should
persist throughout 1956.
JOHN
HON.
has
considerably above the
rate
a
estate,
banks
outstanding, is at an all-time high of .about $81
billion, or $11 billion more than a year ago.
in
avoid
to
eager
at
real
commercial
at
loans
the aggregate are straining
industrial capacity and prices
are tending upward, therefore, the Federal Reserve will
presumably continue to keep a tight rein on the avail¬
ability of credit. However, the authorities are assuredly
long as demands
against the ceiling of
and
rise
of the
average
ignored.
As
to
loans
period. The amount of commer-.
cial bank credit currently in use, as measured by total
possi¬
a
volume of
outstanding
business
and
continued
international
of
rise
abroad
the
months
consumer
renewed
areas
be
recent
56
page
Thursday, January 19, 1956
...
These
a
farm
to manage these supplies.
are
some
of
the
reasons
why the
government
must
provide the machinery for a farmer-controlled ag¬
riculture, in which our farmers, in their free elections,
can set their production to fit their
markets and in which
farmers, as other businessmen, will have some voice
determining the prices of things they produce and sell.
in
I
repeat: It is
now
important that
the Commercial & Financial
you
people who read
Chronicle, and all the
others
like you, know these
things, for it will be only by such
understanding that the Congress will be able to write
legislation to prevent a catastrophe in Agriculture
that,
Continued
on
page
6(
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(319)
Continued
jrom
cient uranium fuel for several
57 '
page
long' is fascinating work going on right
might weigh less than a>now with atomic energy.*"
power
plant; with
In chemistry, for
example, it has
fuel oil for a single
voyage. It is been
found
that
certain
plastic
atomic energy in medicine is in
the fight against cancer. Here, one
voyages
Business Opportunities
Inherent in Nuclear
Energy: 0. B. Falls
plants
power
If
years.
the next twenty
over
this
like
seems
long
period of time, remember that we
are
dealing
with
large,
longrange solutions to sweeping, longproblems.
range
benefits
to
utilization
be
of
And
the
new
full
from
derived
this
a
the
conventional
also conceivable that
longer and
faster voyages could be made
possible because of the great concentration of energy in uranium fuel
and the consequent freedom from
normal refueling requirements.
There is
shall
val
see
and
atomic
While
direct
appears to
and
application
power
be the most immediate
potentially the biggest
use
to
surface
ships—both
—
To
energy.
we
na-
powered
be
sure,
problems that must be met
are
by
the
big
problems. But there is every reason
to
believe
overcome
.energy will be tremendous enough
to affect many facets of our lives.
question but that
no
merchant
of
source
of
,
in
that they
time.
shall be
due
In the fields of
unit
istry and food preservation, there
which
siderable heat without
melting or
losing their shapes. This is good
been
to
news
pharmaceutical
among others, because
that specific drugs can
tissue
houses,
it
gamma
the
found
fruits
therapy
a
cancerous
pack-
properly
In medicine, much work is being done with the use of radioactive tracers.
duced into
tracers, intropatient's system, can
they
as
are
absorbed
passed off by the system.
highly
important
of
atomic
Another
a
of
installations
the
survey,
built.
are
Atomic
These
billions
the
all
this
on,
be
other
many
it
at
work
on
atomic energy is
important
ing
directly with
the
the
Forum has estimated that, by
1963,
Those
use.
the
growing
interesting
field
of
One
of
Continued
on
the
will
be in the
propulsion. You
gentlemen here today should have
considerable
interest
Marine
I
,r
earlier
reactor for
a
as¬
Propulsion
mentioned
with
this
in
uses.
work
our
submarine. If
a
stop and think for
you
a moment,
thing in the
world that the first marine appli¬
it is the most natural
cation
of
be four.d
is
here
atomic
on
should
energy
naval vessel.
a
lhat
the
weigh initial costs by
consideration
For it
advantages
of
out¬
much that
so
is
economics
not
significant factor.
a
For
example, who
can say how
in terms of dol¬
much it is worth
lars
be
to
able
which
sea
world
to
without
think
what
would
ship
a
Just
such
of
to
the
around
refueling?
fleet
a
ships
to the naval tactician
mean
—what
put
travel
can
effect
it
would
have
on
the
problems of logistics. Atomicpowered
submarines
are
firstclass weapons because
nuclear
en¬
makes possible hitherto
ergy
dreamed-of
un¬
capabilities of under¬
water craft.
■
From
:
*
strictly technical point,
it is known that a nuclear-pow¬
a
ered merchant
this
at
all
time.
the
of
ship could be built
the
On
other
peculiar
3p&$?
hand,
advantages
which make nuclear power so de¬
sirable
for
naval
vessels
not
are
merchant ships. In¬
deed, the success of any merchant
pertinent
to
for
intended
vessel
commercial
measured
The New York Central opens a new era in rail
transportation with this fabulous
peacetime
strictly in terms of eco¬
nomic factors which
are necessar¬
THIS TRAIN WILL SAVE AN INDUSTRY
ily of small concern in the opera¬
tion
time
of
importance
of
in
vessels
naval
of
"dream train"
new
must ultimately be
use
war.
Because
of
the
economic
these
factors,
phi¬
the
The New York Central brings you a fast, lightweight new train
losophy relating to the design and
merchant vessels
of
use
that
can
be
must
and
searched to determine those areas
nuclear
where
offers
power
particular field. When this is done,
the
then
can
be focused
on
problems
technical
specific
that will in due course make such
an
application economically feas¬
ible.
I'd like to mention at this
.
that
many
commercial
point
shipping
giving serious thought
question. In the Nov. 19
issue of "Business Week," I noted
with interest the item about Uni¬
ted States Lines thinking of re¬
lines
to
strengthen
our
are
this
over
the
liner.
propelling
senger
nuclear
This
new
you've
"dream train" is like
ever seen
nothing
before—and it will
soon
Few of those who sometimes
criticize railroad passenger service realize
plant
with
suffi¬
you see
above
can
With
high wheelers, it is lighter, lower, faster
and much
quieter and
more
so
prohibitive that the railroads lost al¬
most 700
million dollars
during the last
comfortable
competition
But the most
train is that it
important thing about this
can
actually
save
America's
railroad passenger business.
on
J this service
year.
The railroads
—all at much lower cost.
are
from
private automobiles—to
busses,
say
and
nothing of
often
regulatory bodies,
politically motivated.
possible for
close
this
us
to set fares which
to,making
up
our
can even
loss. Last
loss nearly equalled
passenger
It will enable
And
it
We know of
no
one
public opinion
are
literally suspended on air—Air under
pressure
fills the doughnut like rubber bellows
at each end of the wheel truck. Vibration and
noise
are
absorbed passing through the air
is
ever
felt.
can
do
or our
so
even
long,
if
Constitution would
.
running
now
two
on
doing all it
can
to encourage
manufacturers to
quickly go
production of these new trains.
We salute General Motors for
the
even
to be
X,"
being built by Pullman-Standard.
The Central is
industry required
loss. Not
soon
the Central. The second, called "Train
these
a
faster, smoother
first
new
train. Next
into service between
in
a
building
Spring it will
go
Chicago and Detroit
speedy daylight run. When you look it
if you don't agree that a new era
over, see
Needless to say, this is a very serious
.dii
in railroading has begun.
...
giving the smoothest, most comfortable ride
you've
permit it.
to offer
The train pictured here is the first of
our
Cars
us
by revitalizing the railroad business,
lead to more employment.
sources.
other
and
can
into volume
to render service at
underframe
service—and to keep passenger fares at a
lower level than they otherwise must be.
two "dream trains"
roads earned from all
strongest
steel
a
body, it is 50% lighter than
standard trains. It is 60% less expensive to
build and 60% less expensive to operate.
These factors combine to make it im¬
come
one.
aluminum
against subsidized
up
airlines,
restrictions imposed by
so
releasing
of
required for fuel oil on
long voyages. The elimination of
air
supply
and
exhaust
ducts
would, of course, make possible
additional cargo space. Further¬
more,
it seems plausible that a
one
present
passenger
pas¬
space now
the
ing
year
in
convert
present high wheel equipment has become
the total net income that America's rail¬
advantages
vigorous, up-to-date railroads.
Trains like the
justifiably
Designed and built by General Motors,
it makes a clean break with the past. Like
today's Chevrolet compared with the old
for cargo use the large amount
power
defense. To keep our country strong, we
shrinking railroad
industry into a dynamic, grow¬
this case, there would seem to be
nuclear
national defense.
that the cost of building and operating
Certainly it appears that power¬
ful
long-range
merchant ships
should receive priority over the
smaller or shorter-range ships. In
genuine
even more
serious- from the standpoint of national
be rolling on the New York Central.
for
power
transatlantic
and from the public's. And it's
employment,
need strong,
placing its ship "America." BW
reported that recurrent industry
rumors have it that U. S. Lines is
mulling
situation—from the railroads' standpoint
po¬
tentially unique advantages to this
attention
revolutionize rail travel, increase
New York
Central
will
industry
in
part of all businessmen.
marine
pect of the atom's
in
asso¬
interest
ant/ will be play¬
roles.
most
now
time goes
as
where
areas
of
will
new source of energy
feel
can
Industrial
is
put to wider
ciated
In
atom
these fields. And
which the atom will be put, there
are
worth
components
Industry—medicine—agriculture
this
ponents which will open up when
or
application
area
industry which is often
overlooked, but which you, as
businessmen, will be interested in.
It is the huge market for com¬
These
a
compo¬
American
auxiliary systems.
growing
more
many
the
to
fuel-handling equipment and
temperature, without spoilage.
one
of
stationary nuclear
add
of reactor units, heat ex¬
changers, pumps, valves and fit¬
tings, piping, welding, tanks and
auxiliaries, coolants, instruments,
has
and
aged and sterilized right in their
plastic containers,
There is
volume
consist
year,
it
when meats
irradiated
will
economy
business.
a
source.
past
that
are
from
rays
annual
plants
with gamma rays, it is possible to
store them for months, at room
means
be
with
Within
is
bombards
radioactive cobalt
be tracked with scintillation
medicine, chem¬
weapons
materials, when exposed to gamma
radiation, can be subjected to con-
counters
Other Nuclear Uses
man's
the
nents for large
59
Railroad
page
61
60
The Commercial and Financial Chronicle
(320)
Continued
in
from
injure our country
people.
and hurt many millions
More than that: With
our
families
farm
of our
understanding
bring to
fair share in the total prosperity
'
'
a
of America.
.
JAMES
:
can
we
COONEY ;
D.
Last year's
ness.
-
high level of incomes—combined with
appreciation for the value
of meat as a protective food—provided vital support to the livestock
and
meat
market
while a record
a
growing
the
during
steadily
/
of
systems
adequate
cost control.
Notwithstanding past cost reduction programs, indus¬
try meat marketing costs have increased in recent years
due
essentially to two factors: First, wage rate increases
have tended to outrun gains realized in labor produc¬
tivity; second, there has been a sustained and growing
consumer demand for products in more convenient form
which, to a considerable degree, transposes home labor to
the processing plant.
An expanding proportion of the
total
meat
supply is being marketed in table-ready
production, for instance, is
Sausage
25%
larger
than in 1950.
Another illustration of this trend is canned
ham
which
has doubled since 1948. More at¬
functional consumer packages has added
to marketing costs, but has been an in¬
dispensable element in keeping abreast of trends in re¬
tail meat merchandising and consumer preferences.
output,
tractive
end
Rising levels of consumer purchasing power have in
past years been accompanied by an increase in the de¬
mand for meat.
In sharp contrast, some of our other
foods
have
undergone
incomes have
expanded.
tion
and
of
meat
economy
erences
is
an
and
products
enviable
doubtless
will
development,
quickly to these
augment the healthy
continue
be
to
its
demand
as
the
nation's
consumer
food
pref¬
but the meat
occur,
ob research
programs
expected
changes
demand
RALPH
in
Shifts in
one.
through
may
ucts
in
Basically, therefore, the posi¬
meat
processing: industry,
decline
a
J.
to adapt its prod¬
in order to protect and
that now eixsts.
CORDINER
President, General Electric Company
As
indicated
will be
first
one
nine
1954.
by published nine months' figures, 1955
of our most successful years.
Sales for the
months
were
To equal the
4%
above
the
same
period
in
record volume of 1953, an increase
over
1954 of 5 to 6% would be re¬
quired.
Present indications
1955 sales volume will
that
are
approach that
level.
Nine
months'
earnings set a new
record, 4% higher than the same
period in 1954.
Indications are that„
this record level will
be
maintained
for the year as a whole.
Dividend
J
to 50 cents by
Directors.
was
in-
the Board of
ment
Ralph
which
As
J.
we
of
significant
1955
is
that
we
now
have
in
know, since World War II we have been en¬
an
extensive program of modernization and
expansion of facilities.
In the last ten years the com¬
pany has been basically rebuilt.
Emphasis has been on
research and development
laboratories, modernization
gaged
you
in
and relocation of facilities to
serve
very
their markets better.
about 2,850,000 telephones
The System added
h
tv.-L-,
*
indicate
increased
an
More
The
America
to
Power
across
and
cables
of
record
kilowatt-hours- per
9.7
hour
man
in
1955.
the next
transoceanic
to
cable
be
to
than $1,600,000,000 for
growth of the
of
ment
new
emphasis
our
have
from
rate
cation
on
some
in
our
of
the
1955.
to illustrate
should
the broad
like
constantly
opening
up
horizons,
new
new
areas
of
and better employment opportunities, and
a better way of life for all of us.
Such developments in
1955 included:
;
'
;
v. t-.-.r
The
first
practical
demonstration
of
method
a
for
producing man-made diamonds by the General Electric
Research Laboratory;
Signing of a contract with the Commonwealth Edison
Company and the Nuclear Power group to build the
largest atomic-fueled electric power generator, a 180,000kilowatt plant in Chicago. (The Penn. Power and Light
project at Allentown calls for 150,000 kilowatts mini¬
which might extend to 200,000, if the design works
Plans call for completion in 1962. Therefore,
be the largest installed at the time.)
The development of an atomic reactor for the subr
marine, the U.S.S. Seawolf, which was launched July 21.
mum,
that way.
will
ours
The first
use
generated from
on
by commercial
July 18, 1955;
The
for
'
j'
manufacture
Company
of
generator
power
lines of electricity
atomic reactor at West Milton, N. Y.
an
of
a*
the
Cleveland
260,000
Electric
KVA
Illum¬
turbine-driven
conductor cooled type which employs
the first time a liquid coolant in direct contact with
of the armature windings—the
cooling system yet designed for large
generators;
Introduction of a portable television receiver which
effective
ex¬
Company of Maryland.
Con¬
expenditures in 1956 will
continue at the high level of ap¬
proximately
$40,000,000.
includes the
Work under way
struction of
a
electric
new
con¬
generat¬
Charles
•
P.
Crane
ing station, with an initial capacity
of
;125,000 kilowatts, which will be
ready for service early in 1956. Anticipating future ex¬
pected demands, an order was placed several months
ago for a second generating unit of the same size to be
installed at this
ter
1959.
of
coming
year
increases
in
cilities.
Our
station not later than the first quar¬
new
Our electric
construction program for the
also provides for additional new substations,
the
capacity of existing substations, addi¬
and distribution
tional transmission
lines, and other fa¬
construction program provides chiefly
extensions to the distribution system to provide for
for
gas
Other projects of considerable size
of a new 5-story building to
rapid load growth.
include
the
construction
house
departments of the gas operating
tional
offices, shop, and storeroom facilities; and trans¬
division;) addi¬
portation equipment.
Contracts
trial
and
obtained
.
during 1955 to supply
commercial
installations
were
new
indus¬
substantially
greater than for the preceding high-record year; electric
contracts showing an increase of 7.7% and gas contracts
increase of 24%.
A considerable proportion of these
installations will not be in operation and reflected
new
in power and fuel sales until 1956.
Final
a
conductors
copper
the
meet
struction
an
*
•
for
to
sion
review
more
at¬
Com¬
was
past year.
panding requirements for electricity
and gas amount to more than $40,000,000 not including about $5,000,000 for the purchase of certain trans¬
mission lines and facilities owned by
the former Susquehanna Transmis¬
future
is at work—
the
facilities
additional
diverse front
and
which this potent process of innovation
growth,
to
1956, approximately the same
level that
expenditures in 1955 to provide
pany
operating departments.
outstanding examples
I
during
tained
fundamental research and the advanced
reported
of them
few
the
maintaining, in
of
record-breaking
is the discovery and develop¬
products and services. These come from
laboratories
our
in
activity throughout the area in which our
operates has increased at an unprecedented
during the past five years, and there is every indi¬
company
Development
confidence
CRANE
Baltimore Gas and Electric Company
economy
development work of all of
You
Product
our
P.
Business
appliances,
lighting and adequate wiring, proved that the
time is ripe for such a program, and it has been en¬
thusiastically endorsed by electric utilities throughout
the country. '•
■
;'H - v
New
spent
about
on
CHARLES
better
of
or
Chairman of the Board and President,
r
Consumer enthusiasm in 1955 for all lines of
of
System
construction,
communication service of top
cooperation with local electric utilities and other
segments of the electrical industry, a similar program
for home use of electricity will get under way in 1956.
pillars
new
growing. Americans need and want more
quality. We are going full
speed ahead to provide it.
keeps right
A
In
the
1955. One, to Alaska, is
late this year. The other,
_
a
has now been established. It is note¬
on the average used
kilowatt-hours last year, as compared to 8,600
kilowatt-hours, in 1939. It is also interesting that the
investment per worker in industry in 1955 amounted
to
$11,400 (according to the Machinery and Allied
Products Institute). (Reliable figures are not available
on
horsepower per worker, but it is estimated to have
increased from 6 horsepower in 1939 to 11 in 1955.)
Examples
systems in
completed
Hawaii, is in the planning stage.
enlarge and improve service the
17,800
of
De¬
$$00,000 every working hour in 1955.
This was the
largest construction program we have ever had.
;
But we expect to do even more in 1956. The country
10 years
1955
next
channels
To
more
worthy that industrial employees
One
drarnatic
most
history. \ By
to supplement
facilities between
North America and England.
Work
proceeded
on
two
other
Craig
scheduled
goal of attaining 20 kilowatt-hours per man hour in
new
F.
:
has been substantially achieved with
hour,
the
The task
telephone
radiotelephone
industry from an average of 4.7 kilowatt-hours to 10 by
1955.
This goal, more than doubling kilowatt-hour use
man
of
one
telephone
telephone
Cleo
which; the
program,
is
with
oceans
cember, the transatlantic cable sys¬
tem is expected to be furnishing 36
industrial
our
improving
oceahs ; as
within the country.
as
bridging
in
instituted in ^cooperation with utilities and
other interested industries, has just completed 10 years.
In 1945 an ambitious goal was established of increasing
the kilowatt-hours per man
hour used in American
per
we Took
improvement
ahd
year
made in
of
Company
on
continued
during 1956.
Progress was
of
volume
customers share this confidence in the future;
a
last
well
ao
Long
conversations 'increased
to
communications
utilities
electric
the
that
better.
about; 12 %
*
indicate
somewhat
or
forward
Future Outlook
forecasts
This year we expect to
distance
employed 'are tontinti^liy
1956 of from 10 to 15%. We see nothing
political or economic horizon (barring a major
war) to alter our previous forecasts of continuing growth
for the economy as a whole and a need for the electrical
industry to continue its rate of doubling every 10 years.
The strength of our apparatus lines of business in 1953
most
accomplish¬
place the facilities and organiza¬
tion
for
the
upsurge
in business
confidently expect in the period ahead.
Cordiner
a
position.
the
the
1955 Highlights
most
*
-
v
sales
inating
payable Jan. 25
creased
The
and
development. Edu¬
was a
year of progress for the
with big gains in service to the public
desirable strengthening of our shareowners'
shipments in
on
significantly
basic
j
*
petitive influences are likely to necessitate continued
emphasis on all forms of plant and equipment mod¬
ernization that incorporates every feasible cost-cutting
CRAIG
well
1956.
come
fifty-five
as
25,Q00 t)f our*
to
years
many
System,
In 1955 the Company spent from
Our
normal growing seasons, supplies of feed
in prospect would appear to assure a high volume of
livestock production lor at least the next few years.
The meat processing industry, while benefiting from
the effects of large volume on low unit costs, continues
to be characterized by aggressive competition.
Com¬
form.
Nineteen
Bell
improved.
James D. Cooney
With
with
F.
1955.
-basis in
virtually assuring the maintenance of
a
high volume of meat production in the year imme¬
diately ahead.
Highly significant to the meat industry is the fact
that the nation's inventory of feed grains—already at
record levels this past year—continues to mount, not¬
withstanding the heavy requirements of a large live¬
stock population.
This development is primarily a re¬
sult of government acreage restrictions on cotton and
wheat, which led to a shift of about 15 million acres
from these crops into feed grains during the past three
complemented
CLEO
taking training courses at Company pxpensej The<rihvy
Management Development Center at Crotonville is now
being completed and will be operated on an experimental
s.
for
use
in
ttyan
.
of the conventional fuels
will be the principal contributions to our progress.
$3)5,000,000 to $40.,0$),000 toMraii?, and retrain employees.
large,
technique,
that
our
training facilities available to all employees
5 More
past
with last year's record
output almost 25%""' larger than in
1951. Currently, productive capacity
of the nation's livestock population
years.
fact
have
years,
continues
the
cation and
gxqwth in the .market Joiv
equipment>
production in the U. *S. has'-
•
total
a
turbine
President) American Telephone & Telegraph Company
ties for individual advancement and
continued
increased
obscure
not
employee
been
intent to build
an
the present fleet of 25 gas
to
greater efficiencies in
The Company's decentralization of product respon¬
sibility and authority, how in its fifth year, has greatly
strengthened the organization and opened up opportuni¬
Likewise, added purchas¬
ing power, in the hands of an in¬
creasingly health-conscious and
recreation-minded population, meant
four
added
achievements
rightfully made news in 1955. But there were
many others which, if less dramatic from a news stand¬
point, made equally spectacular contributions to progress.
The emphasis on such new things as atomic power should
medical and hospitalization costs.
supply of meat was moved into con¬
Meat
be
45 to
which
union contract. Among the many wage and other
benefits, this contract includes a pioneering
program unique in its coverage of extended
year
fifteen
electric locomotives of 2,500 horsepower; I
These are some of the more spectacular
insurance
sumption.
athletic
of
which provided the basis for a five-
program
July, 1957 and December, 1958;
8,500 horsepower gas tur¬
build
to
bine electric locomotives with
of
benefits
between
order
An
standpoint, and from the stand¬
individual employees, a significant, milestone
in 1955 was the development of an expanded employee
point
Expanding employment and record consumer incomes
during the past year provided a favorable climate for
both the meat industry and the sporting goods busi- i
r
launched
be
are
From the organization
President, Wilson & Co., Inc.
"
:
accomplish this, recent years'
by high starting costs. We
affected
judgment, inevitably would
my
first-stage rocket propulsion system for the satellite to
profits have been
now fully in a
position to move ahead. This does not mean that our in¬
vestment in modernized plants and expansion will fall
off.
On the contrary, it will be a new record high of
$175,000,000 in 1956 and the total expenditures for the
next three years will be approximately half a billion
dollars.
This compares with about $465,000,000 in the
past three years (1953 through 1.955).
.'■> ■
\
To
58
page
Thursday, January 19, 1956
;
.
.
figures
for
December
sales
are
not
available
(at the time this is written, but we estimate that elec¬
tric
kilowatt hour
compared with
sales in
1954, of
1955 will show
9.9%
to
increases, as
residential customers,
turbine
7.1% to commercial, and 15.0% to industrial users.
has
follows:
sold
than
approximately
many
200,000 units, or more sets
companies sell of all types. This set, which
on May 20,
1955, has a 14-inch screen,
introduced
was
weighs
32
pounds
compared to
1950;
electronic
sells
screen
for
less
than
$100.00
of
oven
Announcement
■
such
and
that
startlingly
a
as
which sold for $231.00 in
■'
.
Announcement
and
and
12-inch
a
cordless
General
new
appliances
electric
Electric
v-
v
as
Sales
show increases approximately as
12.8%, commercial 4.5%, and indus¬
of gas are expected to
trial
residential
28.1%,
Residential construction in the Baltimore area reached
an
all-time high in 1955 with over 17.200
as compared to ,14,986 in
construction is expected to continue at
.completed,
level
during
the coming
months.
12
dwelling units
1954,. ..Residential
close to the 1955
During. the year,
clock;
will
build
the
■
Continued
on
page
62
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(321)
Continued from page 59
>
L. A.
-
Business Opportunities
Inherent in Nuclear
Smith,
And
this
interest
by
certainly
world-wide.
Last
of
was
announced
Executive
Vice-
organization
resentative.
resent
York
the
firm
the
the
on
countries
official
at 445 North
33
is
years,
In
For
of
the
entire
over
the
company's
short period of two
weeks, it was
possible to get a remarkably good
dations
available
foreign market for atomic
registered
Roxbury Drive, Bev¬
McDaniel
Lewis
H. G.
CHICAGO,
the
to
&
Johnson
Co.,
with
CHICAGO,
111.
Messick Jr. is
Hutchins
&
—
BOSTON, Mass.
now
Co.,
S.
South
securities
changes.
recommen¬
com¬
ments in New York.
merly
&
and
Midwest
Mr.
with
Incorporated,
was
for¬
S.
Messick
Co.
Co.,
141
Co.,
with
Harriman
and
Midwest
J.
Ripley
With Reynolds & Co.
Federal
30
New
Exchanges.
(Special to The Financial Chronicle)
CHICAGO, 111.—Cecil J. Downs
has rejoined the staff of Reynolds
Hemphill, Noyes Adds
&
(Special to The Financial Chronicle)
Ex¬
Messick
Andrew
&
York
the
Street.
La
Stock
Bros.
C.
connected
Boulevard, members
with Mitchell,
231
Richard
—
become
Lamson
Stock
Maurice
—
is
&
Andrew
111.
has
of
With Harriman Ripley
;
(Special to The Financial Chronicle)
York
market
—
added
West Jackson
State.
25 years he edited the
daily
been
Jefferson Building.
rep¬
Salle Street, members of the New
and
of
has
Griffin
a
erly Hills.
repre¬
list.
a
staff
Mr. Petteys will rep-1
firm
in Upper
New
Joins Mitchell Hutchins
•
for
Energy, for
resident partner in charge of the
frankly amazed at
of potential customers newly opened Bache & Co. office
half
the
as
GREENSBORO, N. C.
Winslow
*
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
■i
met.
My company carried on
conversations with persons from
picture
Exchange, it
Exchange
with
I
sented
firm
admitted
was
the number
over
the
Co., has been
Atomic
on
example, I
&
Smith, who has been associated
•<
August, at the Geneva Con—,
ference
(Special to The Financial Chronicle)
President Thomas P. Phelan.
is
With Lamson Bros.
McDaniel Lewis Adds
membership in the Los Angeles
Stock
Energy: 0. B. Falls
With Amott, Baker
Amott, Baker & Co., Incorpo¬
rated, announces that Henry'C.
Petteys, formerly with Investors
Services, Inc., has joined their
representing
Bache
to
Exchange Member
ANGELES, Calif.—Sam J.
LOS
61
BOSTON, Mass.
Jenkins
Noyes
is
now
Richard
—
with
Co., 39
South
Mr. Downs has
A.
La
Salle
Apgar, Daniels & Co.
Hemphill,
Street.
recently been with
Co.,
10
In the past
he
Office
Post
Square.
was
in the investment business
in
&
Los
Angeles.'
:
energy
products. And, let me assure you
that this is a sizable and attrac¬
tive market.
V There
are
peculiar
must
to
be
problems
many
this
solved
market
before
to
But
been
cnce
they have
with and disposed
of,
in
this
country
mands
of
from
our
I
shall
we
for
it.
dealt
1
At 60, Anaconda moves ahead with its first
see
ations in Montana and Chile
de¬
—
a
to
mean
problems
world
copper oper¬
fabricating plants
new
—
products
that
suggest
light
are
our
These
government.
tions of security,
have
or
are
120,000,000 pounds of aluminum
a
year:
On
August 15, Anaconda Aluminum Com¬
pany began to pour primary aluminum. Its
modern new
plant is now in full production
an
important new source of the vital
"white metal" to
help meet growing needs.
ques¬
financing, insur¬
the like, which are dif¬
enough
when
related
to
and
ficult
new
primary aluminum —with expanding
growing uranium oxide production
simple solutions. On the contrary,
they are difficult questions and
are
receiving the best thinking
of people both in
industry and in
ance
dynamic
industry.
new
don't
these
serve
tremendous
abroad
Dynamic metals for
which
American
industry will be able
—
domestic business—but when
sidered
in
market,
terms
of
con¬
the
foreign
almost to defy solu¬
seem
More copper:
tion.
Our
lawmakers
Congressional
the
—
ore reserves
Joint
Committee
Energy and the A.E.C.—
sincerely desirous of solving
have
tana
these problems and
helping U. S.
industry
take
over
the
atomic
energy business in foreign fields.
as important are
advancements in
for
is
will be found.
the
have
a
many-sided
several
past
covered
few
a
massive
thing,
block-caving, open-pit mining, and
possible economical
production from low-grade ores. Expanding
operations and new ore processing. plants
in both Montana and Chile are
helping
bring the supply of refined copper into bal¬
ore
and
minutes
we
the
of
high¬
lights cf the new industry. I hope
from what I've said, you c^n ?pe
that atomic energv as a business
is
already out
of
the
infancy
stags. At this very moment, in
.hundreds
cf
different
More
companies
Seventy-fiye'years ago, pioneers
of the electrical age were passing
through the same stage that our
atomic industry is now in. And
the bold, imaginative plans thov
made at that, time, qhapged
the
course of history and affected the
lives
of
everyone.
History has
repeatedly taught us in the elec¬
trical industry to reach boldly for
seemingly impossible goals
to dream big, if you will.
More fuel for
1955,
confident that, in not
shall
years,
we
upon
these
early
look
days
atomic
energy business
the
dreams
we
that
about
for
putting
the
atom
too
see
row's manifold
dreamed
Anaconda
really dreams—
but accurate predictions.
E.
Kaehler, President of
its
manufacturing
new
com¬
a^d bet-:;
ways
most
SAN FRANCISCO, Calif.—Ron¬
ald
peacetime atomic progress.
and
of doing things with the Hvorld sline of nonferrous}jnetals
and mill products. The Anaconda 'Com¬
pany, 25 Broadway, New York 4, N. Y. •
New S. F. Exch. Member <
j
—
panies afe constantly seeking
ter
-
During
Anacondas
work
to
weren't
man
power:
at
making Anaconda prob¬
ably the largest single producer of uranium
concentrates in America. With
large-scale
production from its own uranium ore de¬
posits, Anaconda is making every effort to
help provide the raw material for tomor¬
the
and
Anaconda
processing plant near Grants, N. M.,
went into action
back
of
peaceful atom
additional facilities
uranium
..
I feel
requirements.
nonferrous metal products:
Company has seven mills
manufacturing electrical wires and cables
with
copper and aluminum conductors. The
American Brass Company has expanded to
meet the
growing new uses for copper and
copper alloys, is building a new brass mill
in Los
Angeles and a new aluminum fabri¬
cating plant in Terre Haute, Ind.
!
many
with world
Wire and Cable
industry.
new
beneficiation make
ance
throughout the country, men are
at
work
solving problems, con¬
ducting research, planning \ mar¬
kets, developing products—all for
this
technological
mining and metallurgy.
Continuing experiences with methods of
I mention at the outset that the
atom
and in Chile.
Every bit
And I believe that in due time the
answers
time in its history.
exploration and development
revealed
large new deposits in Mon¬
Intensive
on
Atomic
are
Anaconda has greater copper
than at any
the
extensive
■■■J
•
San
Francisco
has
announced
N. Connor
ship in
Stock
the
...
Exchange,
election
65248A (Kev)
of
Templeton to member¬
the
San
Francisco
Stock
Exchange.
Mr.
partner
Templeton
in
Mitchum,
the
Jones
is
a
general
member, firm
&
®
of
Templeton;.
.
Mr. Templeton acquired the mem¬
bership
by
transfer
Colis
from
Mitchum, who is becoming
ited partner of the firm.
a
AT
lim¬
ANACONDA
■t
"
it.
■
.
"!
I
I
<
>
'
:
!
PROGRESS
HAS-A
BROAD
BASE
t
62
The Commercial and Financial Chronicle
(322)
Continued
jrom
17,200 electric and
some
tomers
added
were
to
*
13,300 gas domestic cus¬
As a result of the ex¬
lines.
electric convenience and labor-saving
heating installations, and other modern
household facilities, the average electric consumption
per residential customer in 1955 was over 5% greater,
and the average gas consumption was 9% greater than
panding
for the
of
use
appliances,
gas
preceding year.
.
Residential growth and new home
construction is being
attended
by a heavy increase in commercial construc¬
tion, including a number of large shopping centers and
complete department store branches in heavily populated
suburban sections. A new 20-story office building now
rising in the center of the city is scheduled for comple¬
tion
before
the year.
the end of
The investment here in
industrial plants and ex¬
new
totaled $263,000,000;
the highest previous year
The additional labor requirement
as a result of this industrial growth is estimated at close
to 11,900 employees. The economic effects of a substan¬
tial part of this growth will not be felt until 1956 and
pansions,
during
announced
1955.
two-thirds greater than
over
in Baltimore's history.
New
manufacturing concerns, now locating and nego¬
tiating for locations, will add to both the size and diver¬
our local industrial structure.
These acqui¬
sification of
sitions, together with large-scale expansion projects now
~
to
Canadian"
transcontinental
the
equip
and
streamlined
"Tne
Dominion,"
"The
expanded
steel
warrant.
were
business
on
conditions
in
the
Baltimore
accommodate
channels
seven
demands
as
Montreal-Quebec City circuit, which in¬
augurated service in July of 1955 on a temporary basis
and is now carrying television
programs for tie Cana¬
dian
Broadcasting Corporation,
month.
The
Toronto-London
will
be
circuit
completed
this
completed
was
in
Calgary and Edmonton in the West.
first to be ordered in Canada, and scheduled for delivery
Dieselization of tne
r
railway continued during the year,
units, bringing to 55d
the number of diesels
now
in service
on
planning for the
in
advance
rapidly
I.
B.
as
M.
of
provide for maintenance and overhaul of its grow¬
Its
1957.
cf all
In
treal.
expansion
is
made
of
already
the
St. Luc Yards,
track and- includes
large
94.7 miles of
of
up
type of facility for the handling of motive power
freight train equipment, this new shop features a
wheel-truing machine whicn restores the contours of
worn
locomotive wheels without their removal from
every
tne diesel unit.
of the
core
data
system is
new
an
processing installation, the
electronic
brain
has
such
amazing
which it will make
new processes
pos¬
handling of much of the paperwork
departments.
another
the
sphere
has maintained an
Safety Council's coveted
"Public Safety Activities" award, in recognition of out¬
standing public safety programs directed to employees
and the general public, was won last year by the com¬
pany. This award is designed to recognize and stimulate
safety work by the railways.
enviable record.
An
preliminary changes
being put into effect as
are
checking, matching, multiplying and
sible will affect the
ing fleet of diesel locomotives the company completed a
new and modern service shop at St. Luc Yard in Mon¬
The
electronic
speed in adding,
dividing that the
all lines.
and
system
new
installation
possible.
705
in
early
with the purchase of 97 locomotive
and
effect
to
The
December, and the London-Windsor circuit is likely to
be completed in
February.
The
company,
following a policy of modernization
with attendant increased
efficiency, is in the process of
streamlining accounting procedures through integrated
data processing, using electronic
computers. In further¬
ance
of this new development, which is
of broadest
significance, a research group is working on detailed
tion
nificant
carry^ one television circuit, or 600 voice
present single channel * system can be
the speedy stainless steely self-pro¬
pelled rail diesel cars, also constructed by the Budi
Company. Replacing conventional trains and enabling a
speedier and more economical service to be provided,
Dayliners were put into passenger train service in the
past
year
between Calgary-Lethbridge; LethbridgeMedicine Hat; Winnipeg - Hi verton - Great Falls, Saint'
John, N. B.; Edmundston, Montreal-Quebec; and VictoriaCourtenay on Vancouver Island. Dayliners are also in
use
in passenger train service between Montreal-Mont
Laurier;
North
Bay-Angliers;
Toronto-Detroit;
and
Toronto-Peterborough in Eastern Canada; and between
which
equipment, electronics, chemicals, containers, clo¬
sures, electric tools, plumbing fixtures, will have a sig¬
Thursday, January 19, 1956
.
The
trains,
of Dayliners,
way by
existing industries, including national
manufacturers of communication equipment, transporta¬
under
can
stainless
173
including 3o scenic-dome units
cars;
purchased from the Budd Company at Philadelphia, the;
largest single order ever received by that company.
The year just ended also brougxit additional utiliza¬
tion
channel
circuits.
order
In
To
thereafter.
train,
1886.
in
over
our
by the company's first transcontinental
required
60
page
.
.
In
The
company
National
1955, then, there has been widespread improvement
expansion of Canadian Pacific equipment and serv¬
throughout the nation and abroad.
It is the third such modern shop on the
and
Steel production here in 1955 was higher than in 1954
and large-scale expansions, during the past 12 months
system for the specialized maintenance of diesel loco¬
motives, the others being located at Calgary, Alta., and
ices
and still under way, should result in substantially greater
Nelson, B. C.
air facilities will strengthen the position of the company
in the highly competitive transportation industry of to¬
in 1956.
area
output
in
the
almost
50%
ahead.
year
Stainless
steel
output
above the previous year's total and these
adding new facilities to effect major increases
beginning in 1956. The production of aluminum extru¬
mills
are
sions is being greatly increased
began operating late in the
by
large plant which
a
and further expansion
year,
in this field is scheduled for 1956.
A huge
public works is under way here
to major highway and toll
construction, the new $140,000,000 Baltimore Har¬
program of
it includes,
and
read
bor Tunnel
is
which work
on
scheduled
in addition
for
started early in 1955 and
was
completion
the
at
of
end
1957.
State
projects, for which more than $22,500,000 has been ap¬
propriated; to be placed under contract during the com¬
ing year include an $8,000,000 State Office
Building in
Baltimore, a $3,000,000 State Office Building in Annaoolis, and important additions at State hospitals, colleges
and other institutions.
Additions to Federal Government
facilities, scheduled for 1956, include large scale housing,
shop and other installations at a number of
military
posts in the territory served by our
company.
.
Based
and
the sound
on
structure of the past, the healthy
advancement recorded during 1955, and
vigorous
the aggressive well-considered
plans projected for 1956,
we view the
coming year in this area as one of uninter¬
rupted progress to higher levels of business achievement
and
Ijiigher standards of human
N.
R.
President, Canadian
Canada
continues
to
welfare.
the
At
was
tant
time, the Canadian Pacific made impor¬
same
additions
its
to
freight
the
fast-developing national economy. New
units of freight and work equipment ordered during
1955 totaled 1,643, bringing the total number of sucxi
cars added since Iy45 to 31,931.
As part of the Canadian Pacific's role to provide trans¬
portation services in keeping with the country's eco¬
nomic growth a
16-mile railway line connecting the
mining community of Nephton, Ont., with the company's
line at Havelock, was opened last January.
This line
provides easy access to an area producing non-metallic
reck used in ceramics, glass, paint and otner products.
In October a 40-mile branch line from Struthers, on
the main line 33 miles west of White River, to Geco, a
point nort.i of Manitouwadge Lake, was officially opened.
line
This
taps an important new mineral development,
ready access to the Great'Lakes and to the
railway system of Canada and the United States
On
the
the company's new 26,000-ton, "Empress
of Britain," was launched at Glasgow in June by Her
Majesty, The Queen. As the first new Canadian Pacifie
sea,
ship
passenger
take
to
the
to
ocean
since
streamlined, specially-designed liner will add
mcdern
touch
to
slipping in
the
St.
when she makes her maiden voyage
1930,
a
uniquely
route/
Lawrence
this spring.
now
this
A sister
under construction,
Railway
forward
move
Company
with
The 7,000-ton
increasing
train-ferry, t'"e "Princess of Vancouver,"
the
largest vessel of its type, ever constructed, cntere.1
during 1955 to operate between Vancouver and
Nanaimo, B. C. This all-purpose water carrier is licensed
tion
of
which marked its 74th
Anniversary,
and
is berthed
her
Canadian Pacific' is proud to record
were
the
est
scenic
in
run
passenger
a
new
dome-car
the
look
at
tile
by operation of
of
these
scene;
speedy, self-propelled rail diesel
in
Dayliner service;
by im¬
in
rail
service
from the purchase of
nearly
diesel locomotive
100
branch
new
In
N.
new
R.
Crump
serve
the
country's
industry; by the launching of the new
Empress of Britain" to join tne North At¬
26,000-ton
lantic
service next
spring; by addition of the all-purpose
train-ferry "Princess of Vancouver" to the service be¬
tween
Vancouver and
Nanaimo, B. C.; and by the in¬
auguration of an air route over the
top of the world
between Vancouver and
Amsterdam.
The Canadian Pacific is
backing its faith in Canada
with money and action.
.
playing
transportation and
snippers of
meet
be
this
today.
a
an
ever
more
dominant
variety of choices is
open
role
to the
The Canadian Pacific is
prepared
and asks only that all
challenge
to
competitors
subject to similar obligations and
conditions.
The
new
streamlined,
steel,
scenic-dome
passenger train, "The
Canadian," has
enthusiastic welcome by a
large and grow¬
This fine
transportation
makes
tween
history,
Montreal
it
specially-designed piers at Van¬
new
Air
pattern
r
;
Lines,
now
the
world,
in
having the seventh
made
further
two
advancements
countries
1,00J
miles
closer
to
Europe
and
expanding Canada tomorrow,
CURTICE
H.
in general.
It
record
was a
industry.
I
year
for the automotive
\■■
' '
'
confident that 1956 will be another year of pros¬
am
perity for the United States and most
of the free world.
Among the important
nation's
for
reasons
prosperity in
1955 was
high degree of consumer confi¬
dence that existed, coupled with a
our
toe
level
of
consumer
People had
disposable
and they
money,
had the confidence to spend
The
automobile
industry
record share of this
ing because
its
it.
won
1955
a
spend¬
consumer
products
were
outstanding and represented sue l
great values under the conditions of
so
vigorous competition that prevailed.
Customers—especially General Mo¬
Harlow
H. Curtice
tors
customers
recognized these
values quickly.
As a consequence, 1955 results in our industry out¬
distanced the predictions of forecasters—including mine,
and I think I was the most optimistic of all.
—
The forces that produced
prosperity in 1955 and other
In addition
already mentioned, t ey include an expanding
population, technological progress, large capital invest¬
ments by industry, full employment and other factors.
For the automotive industry, 1956 will be another year
of healthy competition. Tris will mean maximum ben¬
recent years will
to
the
efits
new
to
the
customer.
Speaking for General Motors, I
expect it also to mean a profitable year for
can
say
cur
dealers, suppliers, employees and shareholders.
we
LAWRENCE
train, which made
possible
to
travel
be¬
Toronto and Vancouver in
luxury
and comfort in less tr.an
three days—just half the time
CURTISS
M.
First Vice-Fresident,
American Investment Company
Continuation
first
continue to operate in 1958.
those
the
early November, Canadian Pacific Air Lines intro¬
in
1956, with
of
1955.
of
the
some
Demand
-.1
cf Illinois
„
prosperity is expected
leveling off from the rapid increase
present
for goods
and services
appears
to
be
strong in most industries, and this will have a continuing
favorable
effect
are
available on this service which provides a shorter
link between Eastern Canadian centers and South Amer¬
ican points served
consumer
Jobs will continue
million
65
and
billion.
Pacific
Lines
October,
of
a
which
of
cruising
range
a
With
Pacific
Air
Lines
uing
sumer
to
announced
in
fleet of Britannia turbo-prop airliners,
are
scheduled
for delivery
in 1957.
speed
of 400 miles
per
of 6,000 miles, these
craft will enable
non-stop
of Mexico City by Canadian
year's end,
Canadian
the purchase of
three
way
At
Canadian Pacific
between
Vancouver
new
to
and
hour and
-
with
in
their
Canadian
National
counterpart,
linking
the development of microwave installations
Montreal-Quebec City; Toronto-London,
and
London-Windsor.
located
message
at
This system of microwave "repeaters"
intervals of approximately 30 miles, carries
circuits
from
city
to
city.
Each
microwave
and
credit
grow
robust, the con¬
will continue
industry
about the
at
1955.
Consumer
continuation of
Availability
Lawrence
M.
Curtiss
sumer
'
During the year, Canadian Pacific Communications, in
conjunction with
the general economy contin¬
strong
same
pace
spending
as
will
in 1956.
Job security and
rising wage scales will underwrite a
12
continued
disposable
$280
reach
product
Britannia air¬
fly 100 passengers
Amsterdam
probably
provide the major stimulus for the
expected increase in gross national
a
hours, and between Vancouver and Tokyo, non-stop, also
will
income
Canadian Pacific Air
operating 27,610 route miles in international
9,354 route miles in domestic service.
service and
In
by
Air Lines.
were
exceed
the
on
finance industry.
to
or
and
sea
Nineteen fifty-five was an outstanding year for busi-f
ness
same
stainless
ing number of patrons.
at
in 12 hours.
transcontinental
been given an
route
Capable
Competition is
in
115 automobiles, or a combina¬
is equipped for stern-loading
vessel
high-speed, non-stop service between
Eastern Canada and
Mexico, when it inaugurated weekly
flights linking Toronto and Mexico City. Tourist fares
for those
seeking Mexico's sunshine and historic charm
com¬
lines to
handle 28 railway box¬
and at Nanaimo.
duced
resulting
units; by the
pletion of two
land,
President, General Motors Corporation
United Kingdom.
cars
provements
The
can
during the year. : A new transpolar route was inaugurated between Amsterdam and
Vancouver, at which point connection is made with its
existing routes serving Australia, New Zealand, the Fiji
Islands, Hawaii, Japan and China, in effect bringing
literally
Canadian
both.
notable
increased number
an
approximately
or
cars,
largest
train
world, offering
800 passengers and
carry
Canadian Pacific
high¬
long¬
lighted by inauguration of
to
couver
its contributions to tie
advancement
of
transportation—by land, sea and
air.
*
contributions
its
^
Pacific
service
These
HARLOW
income.
area.
of
day and will materially assist it in meeting the transpor¬
record
for the base metals to be mined in this
modernization
tation requirements of an
entire
place among the nations of the world
and with
growing confidence in her economic destiny.
Advancement in transportation is an essential
part of
the nation's
expansion in production
and
trade, and in the past year,
to
assurance
progressive
providing
ship, toe "Empress of England/'
will join the fleet in 1957.
CRUMP
inventory to meet
car
demands of the
This
of
consumer
credit
will ~continue
basis
as
in
confidence'.
for
cn
the
con¬
much
the
1955.
Delinquencies and losses in the consumer, credit field
improve slightly over 1955.
will
The
affect
fears
political uncertainties of an election year do not
the consumer except indirectlv. when business
are
so
strong as.to cause a reduction in employ-
Continued
on
page
64
Number 5460
Volume 183
The Commercial and Financial Chronicle
....
and Arthur
NASD District No. 4
E. F. Willett With
(323)
Tarras, A. C. Tarras &
Shields &
The investment
Shields
&
Company, 44 Wall St.,
City, members of the
York Stock Exchange, an¬
New
York
New
that
nounces
fl"
Edward
Willett is
F.
now
associated
with
the
MINNEAPOLIS,
Minn.
—
At
CLEVELAND, Ohio—Albert L.
Association
a
coming
Bennett
year,
of the
Charles ; R;
and
J.
M.
Dain
Com¬
Minneapolis, ' was elected
Secretary. Previously, Edward J.
new
of
firm.
He
pany,
rick
Co.,
Eberstadt &
Co.
Inc.
Mr.
Willett,
economist
an
and
author
is
S.
cn
the board
were
Burnham Har¬
'■
'
FT.
ron
CLEVELAND, Ohio
Kendrick
staff of
has
been
added
to
two
staff of
later
years
the Hoover
Force
guished
the
on
Civilian
highest
awarded
headed
National
Service
civilian
With Fahnestock
of
Continental
Bar¬
Life
HARTFORD, Conn.
Glazier
is
now
—
Leonard
affiliated
with
Fahnestock & Co., 75 Pearl Street.
Better
by the Navy.
nam
the
District
the
No.
National
&
Securities
6
Dealers,
change.
Food
Committee
Inc.,
fjl
Barron
McCulloch
elected its
was
Chairman
the
for
1953.
year
Mr. McCulloch
i
proprietor
s
of Barron Mc¬
Culloch & Co.,
of Fort
Worth,
.Texas. He
ceeds
suc¬
Philip
R. Neuhaus of
'Underwood,
Neuhaus
&
.Co., of Hous¬
ton, Texas, as
Chairman.
Barron
McCulloch
Committee¬
men
recently
e'ected
to
serve
15, 1959 are: Louis J.
until
Jan.
Kocurek
of
Rauscher, Pierce &
Antonio,
Texas;
Neill T. Masterson, Jr. of Chas. E.
White & Co., Houston, Texas.
Co.,
Inc.,
Other
No.
G
San
members
Committee
Eubank
of
of
the
Charles
District
Charles
are:
J.
J.
Eubank
Company, Waco, Texas; William
Hobbs, Jr. of Russ & Co., Inc.,
G.
San
Antonio,
Sorensen
Texas;
Walter
M.
of
Rotan, Mosle & Co.,
Houston, Texas; Nelson Waggener
of Walker, Austin &
Waggener,
Dallas, Texas.
The
trict
of
District
No.
6
Austin,
Governor
is:
Edward
Hart
&
for
H.
Dis¬
Austin
Parvin,
San
Antonio, Texas.
District No. 6 comprises the en¬
tire State of Texas.
Mr. McCulloch expects to make
early announcement of: ap¬
pointments to the Business Con¬
an
duct,
Quotations
and
Practice Committees.
Uniform
H These
With Lincoln McRae
Goucher
with
has
Maine
—
become
Lincoln E.
just
a
few of
products available to
(Special to The Financial Chronicle)
ROCKLAND.
are
John
P.
research and the
connected
McRae, 23 Maine
Street.
to
you
many
better
through Cyanamid
application of its chemicals
improve quality and lower costs.
CFA2VAM I
AMERICAN
30
ie
Financial Chronicle)
CINCINNATI, Ohio
N.
Mathes is
C.
H.
Bank
Reiter
&
Building,
Cincinnati
was
now
Co.,
Howard
Fifth
members
Slock
previously
—
connected
with
Third
of
Exchange.
with
Browning & Co.
the
He
Nelson,
BUILDING
FOR
THE
FUTURE
THROUGH
CYAN AM I D
ROCKEFEllER
Now With C. H. Reiter
(Special to T
1
Co., Inc., 77 Franklin St:,
meeting
Association
-
members of the Boston Stock Ex¬
Paper
Better
Metals
Elects New Officers
a
-
BOSTON, Mass.—James F. Kelljp
Better
Award,
State
has joined the staff of F. L. Put¬
Se¬
decoration
325
.
Commission's
DALLAS, Texas—At
of
Company,
the
; NASD District No. 6
of
&
Joins Putnam Staff
(Special to The Financial Chronicle)
Organization. He received
the Navy Department Distin¬
I
Sheffield
Street.
Building, members of
curity
the
the
NEW HAVEN, Conn.—Frank M.
Jefferson is now connected with
€yanamid Means
the then
Navy Secretary, James Forrestal,
-
(Special to The Financial Chronicle)
Minneapolis, Building.
College. In 1946 he
Goodwin,
1
University and later
research assistant to
&
(Special to The Financial Chronicle)
Fulton, Reid & Co., Union
Commerce
Bodell
■'
Sheffield Adds
Bruce
—
Barnes,
'
the MidwTest Stock Exchange.
business
McCulloch,
with
Inc., 257 Church Street.
Fulton, Reid Adds
WORTH, Tex.—Barron Mc¬
investment
National
(Special to The Financial Chronicle)
Culloch & Company is continuing
the
Hopwood,
.
& Co.
ris, of Harold E. Wood & Co., St.
&
,V,
'•
A
•;
Now Barron McCulloch
Paul, Clinton White of Piper, Jaffray
City East
previously
with Baxter; Williams & Co.
Lowe, President; Emil Von
V. V"
'
urer.
&" Co.,
Sixth Building. He was
the faculties of Prince¬
on
ton and Smith
Task
Bache
Corp.
his doctorate in economics
served
and
Securities
NEW HAVEN, Conn.—David P.
Hocking has become connected
specializing in
finance, re¬
Willett
Princeton
was
Plan
Arx, Secretary; Paul Burt, Treas¬
Inc.,
Minneapolis, was
was
formerly elected Governor for a three-year
a
Vice-Presi¬ term, beginning in January, 1956.
dent
of
F. Also elected for three-year terms
at
win
McKendrick of Johnson-McKend-
the
ceived
More
Security engaging in a securities business
Dealers, M. H. Bishop of the M. II. from offices at 500 Fifth
Avenue,
Bishop
Company,
Minneapolis, New York
City. Officers are Ed¬
was
elected
Chairman
for
the
partment
F.
..
Rosen has become associated with
Opens
of
business de¬
Edward
More Plan Sees.
V
recent election of District 4 of the
National
With Barnes, Bodell
(Special to The Financial Chronicle)
Company, Winona.
Elects New Officers
Company
banking firm of
joins Bache Staff
(Special to The Financial Chronicle)
63
CHEMISTRY
PIAZA,
NEW
COMPANY
YORK
20,
N. Y.
64
(324)
The Commercial and Financial Chronicle
Continued from page 62
tion of business through tax reductions and other means
the disposal of the government.
at
ment.
This does not appear prospectively to be the case
in 1956.
Population growth,
;
and acceptance of credit all are expected to add to
the demand for consumer credit in 1956.
Growing ac¬
use
ceptance of this service
purchasing
as
growth of this industry.
use
and
part of the average family's
a
Additional families accept and
credit every day in
consumer
employment
satisfying their needs
to
the
Commercial
review, 1955
Midland
New
1956
Financial
"Annual
Chronicle's
very good year for the Marine
Company of Central
Trust
country.
point to about a 10% in¬
finance industry in 1956.
The
and
York
was
and
tne
Deposits
a
banks
of
an
all-
growth of this industry is not tied to the continued high
sales of automobiles.
ever.
in
the
American
consumer
Investment
Company of Illinois expects to
"exceed in 1956 the records which it set in 1955. Outstand¬
ing loans of
this
which is headquartered in
about 10% from this year's ex¬
Expansion of the company's offices
company,
St. Louis, should be
pected $165 million.
■will probably
up
exceed
1955 growth.
important
factor
in
maintaining
first
in
earn¬
ings will exceed its 1955 figures.
Availability of credit for the consumer will continue
much the
on
basis
same
in 1955.
as
No general
tighten¬
ing of credit terms is foreseen at this time.
Delinquen¬
cies and Josses in the consumer credit field will
improve
slightly over 1955.
•: •'
In
general,
expansion
1956
of
be
to
appears
a
of
year
continued
the
economy, based on general business
confidence, continued confidence of the consumer in his
job and future income, continued high employment, ris¬
ing disposable income and increased consumer demand
for the goods
and services produced by industry.
WILLIAM
Chairman,
The
First
L.
DAY
Banking
&
continue
into
on
the
ac¬
1956. The year 1954
hopeful note :that the
business readjustment had about run
its course
and
that
the
following
year
would
ness
activity. Few people realized at
see a resurgence
of busi¬
that time that the production facili¬
ties
the
of
country, which, had al¬
greatly expanded since
been
ready
the
war,
would not
utilized but, indeed,
be
only
fully
unable to com¬
pletely meet the demands of our
economy 12 months hence. However,
such
is
the
case
and
once
again
we
are being warned of
"dangerous in¬
flationary" potentialities which must
be met by credit restraint all along
William
L.
Day
the
fields
of
tremendous
a
tary policies
are
prosperity.
been
anti-inflationary
from
time
continue to be eased
as
Federal
amounts
for
is
not
an
easy
automobile
putedly
directly
output
or
and
indirectly
since
affects
economy, the results could be serious.
is another great prop to our welfare.
seen
in
this
this 'industry
40%" of
re¬
our
The
housing field
We
have already
expected
to
highways.
spend
The
total
/ One of the brightest spots in the picture for 1956 will
I
by
certain
governmental
might restimulate activity in
have touched
on
these
two
This
have in 1956.
These
areas
only two in the general picture, but they have com¬
a
great deal of attention from bankers in the
manded
any
has
Other segments of the
economy are also
a high level, but, to
date, we do not see
great accumulation of inventory which in the
past
been
phase of
one
an
of
the
danger signs pointing to
unhealthy boom.
the
last
What does all this add
up to for 1956? At this writing
we look forward to a
high level of business
the first half at least. A
activity for
great deal will depend on how
drastic and how long credit
restraint remains. Most of
us feel that
any sharp downturn would not
only call for
^relaxation of credit controls, but
two
for
New
their
feeling of confidence concerning the outlook in
America, Inc.,
outlook, for ex¬
ample, reports that "present indications are that during
its
"in
annual
1956
construction
another
all-time
also for actual stimula¬
review
record
'will be established for the
In
support
its
of
and
of
construction
activity
11th consecutive year."
prediction,
it notes that business
equipment as reported by
Exchange Commission and Commerce
Department in the first quarter of 1956 are expected to
expenditures for
plant
and
the Securities and
be at
adds
rate of
a
that
Senate
12%
action
above the average rate for
by Congress
and
House
Public
on
1955.
It
an
Works
Committees
at
meeting of the American Association of
Highway Officials in New Orleans last month.
1956 should be
a
good
J.
the
Slate
for the industry and for
year
deposits will undoubtedly grow considerably in
1956 and bank earnings will continue at new
highs. It
is my opinion that the commercial banks of the
country
A
continuance
half
second
in 1956 in
stand
ready to meet the credit needs of manufacturers,
producers, and consumers in a wise and orderly manner.
1956
are
be
can
as good as 1955—the bankers of the
country
shoulder their responsibilities and do their
eager to
part in making this prediction
of
of
1955
us.
I
know
to
way
express
System
than
serves
that
direct
to
on
has
opinion
an
the
to
fact
in
was
nation's
recognized
railroads,
as
of
one
which
had
a
reasonably 'satisfactory car inven¬
tory. With the delivery of the cars
on order, our freight car fleet will be
47%
new
ordered
since 1945. The latest
roads,
we
crease
in
improvements
though,
better
for
service.
are
the
commerce of an expanding economy.
That is in today's and tomorrow's
South, where stillundeveloped potentials promise an uninterrupted indus¬
capita income in states that
are
still under
the
and
which
costs
demands
therefore
we
must
a
a
sizable in¬
more
efficient
continually strive to
H.
DIXON
The operating companies of the Middle South Utilities
System extended service to the System's 800,000th elec¬
tric
customer
in
June
1955, highlighting the many
operating records established during the year.
New
energy,
and
in
electric
sales
of
operating
kilowatt-hour
average
residential
by
use
achieved
were
electric
and
rural
cus¬
tomers.
These
and
established
ties, Inc.,
income.
doubts about the growth in the South for
no
a
we
big and healthy last year
drought in north central
Therefore, we anticipate sat¬
isfactory
business
in
relation
to
grain carloadings.
Like other rail¬
EDGAR
revenues
per
were
cars,
President, Middle South Utilities, Inc.
records
ing
hopper
offer the best possible transportation service.
in them
we move
line
Iowa.
labor
the best measure
by which business prospects in the region can be judged;
Cars,
our
of
us
face the immediate challenge of
operation,
needed largely to meet
requirements for rail
Many additional millions are being
spent on other property changes and
DeButts
Expan¬
on
90
despite
John W. Devins
cars
transportation service in the South.
A.
to
dis¬
leaders
optimistic.
are
increased
tiarry
business
ac¬
purchase
serve
And, at the beginning of 1955, the
Southern
the
industrial
manufacturers,
other
are
encouraged
covered
Southern Rail¬
attention
in
at a cost
$675,000, in the past six months.
Agricultural crops in the states
about
come
the
and
line
our
in
surges
tributors
1955, with some deliveries
in 1956, the Southern or¬
dered 5,500 new freight cars at a cost
of about $49 million.
'
to
established
sions of cement factories
future prospects in the South which the
way
well
a
tivity.
Reports from
that, "Money talks."
better
no
trend
Company, finished 1955 with strong,
HARRY A. DeBUTTS
is often said
the
offers
sustained
President, Southern Railway System
It
DEVINS
healthy start for business
Minnesota, Iowa, South Dakota and Illinois.
These four states, served by The
Minneapolis & St. Louis Railway
true.
come
W.
President, The Minneapolis & St. Louis Railway Co.
Bank
trial
and
1956 and for years ahead. As the major
the
almost
the
by
are
other
Middle
1955
records
South
Utili¬
indicative of the indus¬
economic
development
of
years.
railway serving
only hope that 1956
the whole region, we- can
bring us a realistic reworking of the national trans¬
portation policy along lines which President Eisenhower
will
has
past 12 months.
operating at
of
The
a
We have
of
activity to in¬
the situation and the
impact
dicate the sensitiveness of
credit restraint or ease could
are
areas
agencies.
this field.
of
year
its share of the
the
Our
capital investments as owners,
vigorous effort to reduce production costs and main¬
tain or obtain a competitive
edge, enlarge or modernize
plants and purchase new and needed equipment.
in
national average for such
credits
last
base
because
1956 is shared by the industry
generally.
The Associated General Contractors of
be the increase in business
tion
of
broader
a
field
expanding business. Acquisition
England-based companies, nationally
accomplishments in the highway con¬
struction field, gives M-C&S a rounded
construction
organization capable of tackling any type of construction.
trial and business growth, paralleled by steadily-increas¬
reversal
With
construction
known
will
successively tightening of credit, a
consequent reduction of housing starts and now a relaxa¬
year
pro¬
annual
accom¬
Specifically if automobile credit is really tightened at
consumer
level, we will undoubtedly see a contrac¬
in
have
and
v-Y'
plishment.
the
en¬
of
this year.
Certainly, the aim of cur government is full 'employ¬
ment, but, equally important, is to avoid serious inflation,
lor in the long run this is the most
devastating of all
phenomena. Thus, our supervisory authorities must walk
this
are
States and
expanded highway
construction program at its present session was
predicted
by both Democratic and Republican members of the
not the level of consumer or mortgage debt is too
high, it is generally recognized that financial restraint
is the order of the day and, since this is a
very delicate
problem»where slight variations have momentous
delayed reactions, mature judgments and great skills
are
required if our economy is not to gyrate unduly.
and
our
1955, may
slacken in volume under the influence of mild
mortgage
credit restraints presently in force.
The figure of IMj
million housing units started in 1955 will not be reached
or
tion
been
may be determined in part by the amount of
stimulus needed in the over-all
economy.
The demand for home mortgage
money, which exerted
much of the pressure for long-term credit in
economy of 1955.
This reliance on easy credit is an important considera¬
tion in the outlook for 1956. Without debating whether
edge"
that
powers
have
be
can
schools -and
we
of
one
the United
acquisition
of
the need becomes apparent.
Government
our
"razor's
Dav,e*
Personal income very likely will rise in 1956 and with
this, quite naturally, consumer spending. This might be
supported by reduction in personal income' taxes.
If
of
leading financial authorities are vitally concerned
with the large amount of debt contracted
by our people.
The expression "powered by credit" has been coined to
the
to. time
be
Currently we
diversity
Zealand.
obtain
.
H*
aimed to maintain the current degree
The
exercised
boost iri the past year,
our
describe
make it difficult for
up
that the Federal Government's present fiscal and mone¬
of
an
of the
consensus
East
with specific predicHowever, it seems to me
tions.
with
estimates
The
Construction Corporation, of
William Denny
Hartford, Conn., and its sub¬
sidiary, The Whaling City Dredge & Dock Company, of
Groton, Conn., Merritt-Chapman & Scott expects to
the
Our
year.
1954.
wide
a
over
./
activity have given
i.e.,
the automotive and home building or, more broadly, the
construction industry. This activity has been sparked to
a large degree by easy credit with the result that
many
economy
least
at
the
line.
Two
♦
cur
can
come
larger
tivity and the consequent intense demand for credit
closed
to
for
of
amount
The year 1955 has been a busy one for bankers and
it is probable that the capacity level of industrial ac¬
will
ing economy
one
The
Pennsylvania
level
months
all
exceeded
over
Savin
there should be any letdown in consumer
spending, the
heavy demand for producers' goods will act as a balance.
Trust Co., Philadelphia, Pa.
commodations
satisfactory
six
in
the
the
complicating and sometimes perplex¬
its net
as
con¬
increase of about
an
1956 will
years.
New
a
that the company's gross income as well
the
for
year
Canada, and abroad in Australia,
Cuba,
the
Dominican
Republic,
Greece, India, Labrador, Spain and
vitally
New offices opened in 1955 will begin to add to Ameri¬
can
Investment's earnings in 1956, and it is expected
25%
some
Merritt-Chapman & Scott,
gaged
cember may show an irregular
pat¬
tern
but
the
business
momentum
a
banner
may be expected in
1956 from
1955, barring the complications that
might develop from unexpected de¬
velopments in international affairs.
jects all
built up last year should be
1955
5%
At
Looking ahead into 1956 I see a
good, active year. July through De¬
another
in
industry is that
best
.7
be
industry.
Construction
believe that
time
high, loan volume increased, and
profits generally were the largest
crease
should
struction
this
to
grew
DENNY
Vice-President,
Merritt-Chapman & Scott Corp., Construction Dept.
Pteview and Outlook Issues."
In
indications
day.
DA VIES
challenging privilege to be asked to contribute
a
The consumer finance or personal instalment loan seg¬
ment of consumer credit will maintain its rate of growth
Present
the
of
W.
Executive
increase of
It is
wants in the market.
1956.
order
Chairman and Chief Executive Officer, Marine Midland
Trust Company of Central New
York, Syracuse, N. Y.
in
,t
the
are
HARRY
the largest single stimulus to the
is
power
WILLIAM
Prosperity and full
family formation and wider
new
Thursday, January 19, 1956
.
.
.
suggested
to the
serve
the
needs
of the
South best
shackling limitations of existing monopoly-type regu¬
lation are replaced with laws
providing an opportunity
as
to compete
freely and fairly for business. And the grow¬
ing business and industry of the South will benefit from
having a free choice among types of transportation, each
doing its share according to its abilities to
set in the free
Pending
operate in
market of open
such
a
way
in the future
serve
at
prices
competition.
happy development, we continue to
that expresses our complete confidence
a
of the
South.
ing
South
during
recent
Stimulating the area's growth
development and load-build¬
activities of the Middle South
the
System companies—Arkansas Power
Congress.
We will be able to
are
Middle
&
&
&
Light Company, Louisiana Power
Light Company, Mississippi Power
Light Company and New Orleans
Public
Service
Inc.
These
Lugar
n.
u.auii
compan¬
ies, which coordinate their community self-improvement
and industrial development programs with those of state
and
are
local business, civic and professional
organizations,
making important contributions toward the future
of the region. Their efforts are aimed at at¬
tracting attention to the wide variety of resources which
progress
Continued
on
page
66
Number 5460
Volume 183
Continued
jrom jirst
The Commercial and Financial Chronicle
...
(325)
point: high wages arise, uncoerced,
capital.7 • Capital, in turn,
page
from
arises
American Tiade Unionism:
from
savings
and
and the seed of still greater prosperity.
savings
we
^Principle of Coercion Should
Be Abandoned
Therefore,
safeguard private property
well
as
to
higher living
as
consumers. " To
see
the wisdom of cooperation in production, note the experience of
the Lincoln Electric Company of
.
from private property.
as
profits,
standards
65
and
Centuries were probably thehighest in the world and attracted to
and
took
a
this country great waves of immeasure
of courage. Few other migration.
Free American wages
academicians have gone this far.3 fashioned living 7 standards that
ideologyj This was
I tellectual honesty
!
t
act of in-
an
There is need of worker reprene
sentation. in
tion
.
a
...
..
were
mu:
in
industrial
amnle
i
relations.
harpaininif
-
■'utili7p'ft
fliifhnre'
hv
For
ex-
snurialistc
...
_
.
.
—«-—,
nhont
of ; an
Of 7 an
out
out
Droductive
art
unprecedented
Unprecedented
with
order
llkelv
the
«Vh2ediby. authoJs.' concert art-'- productive order with ijkgiy,.the
IStS, and actors and in many
i
!
nego-
greatest
tiated/ contracts ■ and awards, in
industry and
government.. The
need
is
not
only
psychological
Today's
.
economic; it
a n
^at llbor andlaotof arednS
nfhirL false and
other
per
.
.
.
vestment
worker
:
,,
in
1
j
the world.
capital, incapital inr«t.
•
This
.7
IS
cion J in
labor
unorganized,
Marxian
cou
counterparts
con-:
Such
should'cO^rate^m
through competitive bidding, employers
„,orc.„ their ,l|low emplo)lers
in
competing firms,
cooperation
capital
with
t0 lnCreaSe Production
markets.^11" r,aA"u» biioumxuupeidW wnn
_
..
.
,
Continued
each other for each is indispen-
ary
on page
worker
ff°>nsr wage rates or do without. Such
rates
S°»ng
ao wunoui. oucn
tirvn
tion
market "coercion" is not unilateral,, how-,
\
but simply a market pneuwuiciion. both
iTirtkor.
Higher
higher
ever,
nrndimtinn
,
production
higher
8 See James F. Lincoln. Incentive Man(Cleveland: The Lincoln Eloc*
vinWa
and
wages
yields
agementt
trie
Co.,
1951 >.
.
is
needs
; the
feeling; o£ "belonging"—the
1 sense cf participation in decisions
1 which affect his destiny.. Other¬
wise, be is liable to frustration
I and a feeling of submergence and
'
atomizatiori.* ?*
/ H'f; -./*
-7iV7
/ My criticism of trade unionism, .'
;
.
while? jp^alielin^$ii^nsjlh.soih^>
>
respects,-, is onlyof the coercive/
aspects in -i the current .economic4
-
rationale vof
.
•'
;
the
organized. labor
movement.^;The chief weakness ri -a
iind;: in therrational^/is 7 its; de-
<
pendence1 uponf, the Vuse, of
j
pulsion^a point well developed by
Sim on.s.4; Trade/ unionism, and
j
com-..
;
/especially/ collective V bargaining, /
]. should/not
biupt.^
ah instrument ;.;of
be
j.
:
-
;r :- j.
instru^ij.
-
v
inentcf/reaspm•* Gpmpulsioh-^i^e^^force—is not within the American
p;',
tradition; the principle of volun- :
tarism is.-?-. V;
•-,' f'.'jVfV?
v
i
Thus
?
•
the
ganizcd
big
labor
question
for
or-
is:' voluntarism
or
'
^
coercion?. '1
/' •
- "-ly.^ - v
Henry Simons stood four-square
I.:.
voluntarism
on
sable
:
:
-
the
as
concomitant
of
,
tial
address
to
the
,
indispenfree
a
so-
ciety.5 In a similar vein, Samuel
Gompers, the "grand old man of
labor," said in his final presidenAF
of
L
'
T
>
in
-
1924:6
"Guided by voluntary
t
•
principles
Federation has grown from
a
l
weakling into the strongest, best
.
our
.
organized- labor movement of all
,:
: /
.
.:•
•the
world.; V. . I want<to urge
thef.fundamentals of
human*.iiberty-^the principles of
devotion- to
1
\7rN-
voluntarisms. No lasting gaip
has&■:
from •compulsion.^' If7-7/,;: we
seek to force,
we1' but "tear.:-r:r',7
apart—that which;, united, is, in-7 * .; 77
I
vincible/7,'• f?:
r-
j ever
come
.
j ;*• In;
me
i
defense, of7voluntarism, det,7'.'^ 7/
that: ours, .historically at %>?■*;
say
least, * is a./ free,'/ economy.;t, By
7
"free/!? I =mean the substantial'aib-7 77,77
j sence of private ahdVpubliecom-; /;; /
\ pulsion. (;In7faqt;^ the^only;; legal 77
|
r
!
repository/of;; compulsion in;
so-7 7- - •
is. the- State.*;What public
;>
has existed has been
:-
ciety
.
compulsion
primarily
of
the
negative
type
'
implied in the concept of "limited
a
government."
This nation
was
founded in the
/:•
'
interest of freedom and individual
O/fyattonalAccounting
Machines
save us
$75,000
a year...
self-determination. With little col'
lective
mum
;
during
the
1 "Some
,
-
.
Reflections
collection
a
on
of
Simons'
—
Syndicalism,"
work,
Chicago
"National
$75,000
Economics
Society (Chicago: Univ.
Press, 1948) pp. 125-159.)
Accounting Machines
of
return in
of
accounting is highly centralized.
For example, while our operations cover
both
the
United
States
See, e.g., Charles Lindblom, Unions
(New Haven: Yale Univ.
Press, 1949); Ludwig von Mises, Human
Action
(New
Haven:
Yale Univ. Press,
1949); David McCord Wright (ed.), The
Impact of the Union, (New York: Harcourt, Brace and Co.,
1951), especially
contribution
by Milton Friedman;
and
W. H. Hutt,
The Theory of Collective
Bargaining,
(Glencoe,
111.:
The
Free
Press, 1954).
|
control of
Henry
C. Simons, ibid.,
pp.
especially his Economics
Free Society, previously noted.
L, Proceedings, 1924,
adelphia. This
Canada, the
payroll is centered in Phil¬
one
Also
our
17,000 employees.
us
is the fact that it
important to
requires
no
'middle-man'
accounting for
In your
p.
for
5.
a
business, too, National
the money
they
office organizes all the
varying, widespread payroll information.
savings
ports, savings bond detail and control, stock
by National
purchase records and insurance controls.
"Personnel taken from
our own
ranks is
easily trained to produce prompt, accurate
accounting records which permit
tain
an
efficient
us to
for 70 yars'
progress
chines will pay for
as
save,
then continue
annual profit. Your
man
ma¬
themselves with
near¬
will gladly show
how much you can
save—and why
your operators
will be happier. (See
yellow pages of
your
write
main¬
operation at all times."
to
us
at
phone book,
Dayton
»€«.
or
9, Ohio.)
U, *, *>Ar
'orrv
"vxf
•
"We particularly like the original-print
earnings record which provides analyzed
Comptroller
;7|;';: ACCOUNTING MACMMIS
2, 3, 24.
5 See
6 AF ol
our
and
SUN OIL COMPANY/ "Pioneering in petroleum
detail for each of
various deductions, statements for tax re¬
"Our
and Capitalism,
4
us
savings of 100%.
part,
3
•
save
Considering our total in¬
$75,050, we enjoy an annual
a year.
vestment
I simply cannot conceive of any tolerable or enduring order
in which there exists widespread organization of workers along occupational, in¬
dustrial, functional lines." Ibid., p. 1.
my
annually/'
20th
Free
2 "For
:
19th and early
Journal of Political Economy, March 1944,
pp. 1-25.
(Also reprinted in posthumous
for
,
return 100% of investment
bargaining and no mini¬
laws American wages
wage
j {
THE NATIONAL CASH REGISTER COMPANY,
977 OFFICES IN 94
67
sable to thc other and t0 produc_
,
my
anH
is
the
sociological.
d
industrial
^
.
grew
arP
fnnpurt
..
1'*
,
'
bei^fit
•'?
of capitalistic production. Capital,Pai
soring
tnetical to each
.s,f
wages did not spring jn short, is the fruit of freedom is traceable to
from the magnamimty of employ7 I„
ers- Ratner
these high .wages
sense, .here i, . d.,re. nf coer"
.-J-.'
.-These high wages did not
j
industrialized economy. This need
is seen in other fields as well as
;
the envy of the earth's peo-
pl®s*
mass-production
v ..—~
j
stimulate
we
dared to criticize the trade, union
,
*
thereby
encourage
savings
But if compulsion and freedom Cleveland 8
President James F.
capital accumulation, so shall arg mutually
exclusive, can we Lincoln says that by cooperating
an
ever-increasing oav that American trade'unionism to increase production, Lincoln
standard of living for the Ameriwould
by adherence to Electric
employees
average
a
can worker.
The primary need of the
principle of voluntarism and physical product per man almost
low-wage
"underdeveloped" the abandonment of the principle twice that of competing unionized
country is not minimum wages of coercion9 I think so
I"*"'
concerns.
As a result, Lincoln
and
trade unionism, which can :
Thft beneflt could b(J manifested
annual
come
later, but capital — tools,
higher wages.
The; ideology
8
average $4,Q0Q or $3,piant> and the;, industrial sinews
000 more than their organized
and
or
COUNTRIES
dayton % omio
P
AWIMQ JHACMiS
.
*
j 3
CASH MGtSTiMS
h)
Financial Chronicle
The Commercial and
66
.
.
Thursday, January 19, 1956
.
(326)
land
and
The Chesapeake
.
the
raise
from
private
The
This offers a
1,711,000 kilowait$»V Approximately $48 million was spent: for con¬
struction- in 1955. This will be raised to an estimated
$60 million in 1956.
Still larger capital outlays are
expected for 1957 and 1958. -
capacity,
In terms of new
lp2,000-kilowatt unit will
a
-
000,000
its
women
on
have
50,000,000 .capitalists
the
records
dollar
value,
During
the
orders
enough to provide
commercial
world
industry
aircraft
of
is
years
In
ago.
airlines for
of
transports
spare
dustries
'
the
all the
entire
commitments
These
parts.
other
of
heavy industries which
contracts with
options
plus
these orders include firm
era,
they
eight airlines for 99 DC-8 jet transports,
for
10
included
not
more
in
the
1955
America
have
tabulations.
continued
at
the
aircraft
builders
of
accepted the grave responsibility of assisting the national
in
government
survival.
the
Our
the
implementation
statesmen
that air power is
United
second
States
rate
air
a
have
feel
This
power.
policy
demonstrated
primary
cannot
its
of
arm
of
secure
awarb-f
defense and
our
or
an
for
safe
policy places
a
with
a
welcome
burden of research, development and production
on
our
industry.
in
the
It
is
gratifying
to
us
to
be
placed
position, of contributing directly both the nation's
pros¬
perity and its protection.
I have firm faith in the
sibility to
our
by heads
views
lems.
and
growing
awareness
of respon¬
Labor, management and govern¬
displayed increasing respect for each others
an
understanding for their separate prob¬
Development and continuation
of such
enlightened
cooperation will prove to be the touchstone of
and
promising national outlook.
a
bright
fogies
only
of
the
possibility
and
approximately
the
exceeding
/
/
.
products
our
I
way
know
to
the
refuse
v.:
to
horse
and
A:-'-." U.
buggy
face- realities,
r•.//v=
and
A-*,]',
how.to; describe; our£ present
building
ex plosion.
I
cause
am
fictittpus and*
a
stretching at the
happy , 4hat I
happen alter 1956.
very
-
:.
S.. Senator from,.Louisiana;:-'
-
J
:
*/:/;/
•,
from 52 to 39 cents ih less thah nine
and
years,
as
a
1955.
The .national
only
a
one
even
While I
to
cars
chain
is//
three legs
long stand if
:
or
1
/
/ ""
reasonably certain that
am
-
is cracked
"
;;
enhance- the financial
our farmers, particu¬
will
well-being, of
larly the
high Jeyels; of.
million
.
Congress will "enact a farm program
whiph
with
year
of the
weakened.
1955. Building-,'
economic
health cannot
nancial
very
in
strong as its weakest link;,'
three-legged stool, our fi¬
as
like
pace.
be
has .resulted
farm prices even while
prices rise", threatens riot '
only American agriculture, but the.
entire American economy.
.; /■
to
economy
should
which
dropping
are
consumer
in 1954,
general
one-half
and
seven
belong
urgently-needed revision of our farm program.,,The farpi
price "squeeze," which has slashed the faVmer's share
of the nation's market basket dollar
Rudolph Eberstadt
predicting another boom
of
/
-
12% ahead of 1955. and the auto¬
some
are
such
•
„
Perhaps the most vital piece of legislative work fac¬
ing the second session of the 84th CongffeSs is; the
1956
year
encouraging
ALLEN J. ELLENDER.
the opinions given by economists and
industry,
of
.
not asked to predict what will
-
better than the very excellent results of
two
be
lation
Alien
J.
Ellender
small farmers, the other
economic stool must not expect legis¬
alone to do the whole job. .;;^
"legs" of
our
.
reached the past year.
Announced plans by n&any~ ma jor
vt
Labor-and
ferreting o'ut
solving it, since these two segments of our economy ajre
so dependent upon the'continuous flow of raw products
the longer term trends.
/ v V from our farms. It is not only unfafr^but alsb basicMjy
The recent apparent
alput-face of the Russians at - unsound for the balance sheets bf labor and-Industry to
show-a continued increase/while the farmer's share 6f
the meeting of the foreign# ministers emphasized the
the faith in the immediate future
of
our
oyidOncek of ;*
and
economy
.
for America
need
to maintain
efficiency and this
its armed forces at
appears
in
business
will
Also, there is no doubt that
activity.
their vast
moderation.
know
credit
and
.The
from
end
in
a
In
prosperous
is my hope and
use
fact,
every-
seems
year
element
great
resources
danger
to
any
economy
the
unbridled
it will avoid
speculation
break
us.
; '
in
which-
as
can
of
only
prices and production.
I
which history has
-
,
As for the
•
legislative phase of what must be a twoeffort to solve our pressing agricultural prob¬
lems, it is my hope that the Congress will adopt a farm
program aimed at achieving two specific goals.
pronged
...
excesses
not in a
sion-plagued 1930's would surely lead to the destruction
of our way of life.
Z
A.;.".""
we
use
political leadership is sound and that
the pitfalls of
pointed out to
an
wisely and with
past, is the too over-optimistic
am
and
belief that the people of America
potential of
disastrous
for
to be available..
)
should
position to recommend. However,
well-being should not blind labor
management to the fact that they cannot long re¬
main strong while the farmer's pocketbook is shrinking.
We have already had one disastrous experience with
lop-sided economic growth. A repetition of the depres¬
take, I
their own temporary
further expansion
a
the
believe that our
As to wh&t course this much-needed cooperation
to be translating itself into
ample credit is available to finance
exceedingly
the American consumer^ dollar continues to shrink.
peak
spending.
increased defense
It
country's well-being by all segments of
the national population.
ment have
was
shijp-building and
ever.increasing
an
guilty
.
Too many people
restraint is unknown.
seams—then,* the
companies for plant expansion are factual
Additionally,
ness
the
are
-
economic condition is that it is
poor year
a
slower than
were
From many of
the
bankers
of
artificial/foundation, which will
momentum and the demand for heavy steel products
has
are
methods.
called.old
However, by midyear all of these industries had picked;
up
lot
a
The
consume
cyclical nature and had
a
is estimated to be
new
building,
great
The words "stop, look, and listen" are no longer in
our vocabulary.
Conservative and cautious advice is no
longer heeded.
Those of us who urge vigilance are
Automo-;
car
A
by people,
days.
catch the business upswing which began early in
were
orders
Railroad
consideration.
homes, appliances, and
the cuff, most of which
\4
•
steel, automobile parts; oil
and gas, electric power, paper; and
a variety of consumer goods enjoyed
excellent busmen.
/
W
From the standpoint of our own
company, the year started out slowly,
with the heavy steel products—piate'
and
structural
shapes
which
we"
manufacture, being in considerable
over-supply.
into
Joneses."
as
mobile people
Indicative of the
caused
unsound
.
than $1,266,806,000.
more
an
companies.
raised the company's backlog of commercial airliners to
total value of
set
dislocation for particular/;
388, with
a
■
biles, building (both private, public
and corporate) reached new all-time./;
peaks with the result that such in- <
company
as
some
industries and
than $1,125,000,000 worth
more
alid
1955
year
goods
taken
automobiles,
our
bought on
who are trying "to keep up with
Many of these purchases are mortgaged
beyond their present- values, which, in sound economic
thinking, spells disaster, and the tragic part of it is
is
•J'lV
rarely
of
household
.
caused
transports,
throughout the
1955
•
is
majority
changes in the type and
quantity of litems needed for the
military establishment, which in turn ;,
best
and
our
commercial
service
in
made by 31
Douglas
concluded
328
much air transportation
as
airliners
just six
just
for
the
radical
result
months
12
received
credit
of
we
all-time record for the
in respect to total national
product and
disposable
income,
several
conflicting
trends were apparent in the economy. Defense spending
continued to decrease and there were
~
> V:'.;
aircraft
number
/
this
to the hilt, and we have
mistakenly and unsoundly
mortgaged not only this generation but future genera¬
tions. It is frightening to read the statistics on how few
purchases today are-paid for in cash. The soundness
States, there
EBERSTADT
up
capitalistic system would devour itself by its own
prodigality.
Practically everything we possess today is mortgaged
that
While
airlift they will provide.
alone
And if
keep
we
over
unrestricted
over-all American economy
by its stature at year's end. During 1955
orders
for
new
transports shattered all
for
the United
They know that if
us
ican
7-W:
demonstrated
commercial
'
With the added §take of
in
.
lock, stbck, and barrel at a
bankrupt bargain price. Lenin knew what he was talk¬
ing about when he predicted that given time the Amer¬
.
The most logical sources is
payrolls.
RUDOLPH
never
appeared more
time in our country's
of
,
of "spendthrifthess" and this reckless waste, they
spree
the
any
growth
We
.
or otherwise,
A- G- EIam
prodigal government, makes Bulganin and
(the shadows of Stalin) laugh out loud
our
will be able to take
President, Barium Steel Corporation
histpry. Airline operators are demon¬
strating astute planning and man¬
agement in providing vital service to
travelers and creating new business
thrpugh thoughtful operations and
exploitation of the potential.
: ? :
These operators have joined our
Donald W. Douglas
industry,yin wholehearted endorse¬
ment of the most Whiting and stimu•
Jating innovation in the long and colorful history of
travel. The day of commercial jet transportation is at
hand. Within our time every major city on the face of
the earth will be within less than a day's travel, one from
the other.
Only time will demonstrate what dramatic
new
markets
this will
open
for the transportation
:';/'\ Z'. 'v
industry.
1956.
-
instead of just smile.;
will be little room for socialism or communism.
logical reason to maintain this
feeling of confidence. The future of
Continuing
higher than 10,000,000.
no
strive for the success of their companies.
to
every
I travel
year
Deal
Fair
unconscionable financial
Khrushchev
,
was
pessimism in evaluating our national
prospects, as I see -them.
We in the aircraft industry have
air
including
ownership, these employes will gain new incentive/
stock
regard, I count myself as
exception. There is no room for
assured at
selves with
ranks, the able and eneregtic men *
own
In this
no
the
celerated rate.
industry ind 40,000,000 or 45,-
stockholders?
new
and
W. DOUGLAS
industry
aircraft
American
will
Where
conceived in faith,
developed on courage and is sustained by vision, so the
people who comprise it are the type who are naturally
optimistic about the prospects and outlook for the future.
America's
during the
r
to be a mere 5,000,009 while the
most venturesome guess runs
President, Douglas Aircraft Company, Inc.
;
.
obligations, individual
stocks, but the most con-
own
now
seems
right within its
DONALD
continue
.
Admittedly, 50,-
growth from equity financing.
servative estimate
•
#
Amaz-
part a3 possible of the funds they
a
of Americans who
plans accord¬
good, and the System is making
ingly.
.
completely reliable statistics available on the. number
no
ahead, the expected load growth of the System indicates
the need to add at least one large unit each year for
some time.
All in all, the 1956 outlook for the Middle
South is
business! history.
000,000 stockholders by 1965 is a large order.. There are
Power
of
Cyrus s. Eaton
need for
200,000-kilowatt unit at its Sterlington
Station in northern Louisiana in 1958. Looking further
addition
.
.
4
a
.
bright prospects in seeking as large
V
New Orleans Public Service Inc. in 1957.
& Light Company contemplates the
be installed by
Louisiana
all-time astronomical
Thoughtless spending has always'
basic industries with which I am as- >.£ turned out tp be a curse and always
will be.' Anyone advocating the pay¬
sociated—railroading, iron ore, steel,
coal, public utilities' and paint—all V ing of debts, balancing the budget,
face a rosy future. In my view, they, Z or reducing needless
expenditures,
will be accused of unpardonable and
like other industries, will find the,
inexcusable heresy. To burden our¬
best
assurance
of
realizing* .'their
system at the end of World War IL Another 135,000kilowatt unit was brought into service in 1955, raising
System capability to 2,165,000 kilowatts.
comfortable peak over the 1955 peak of
an
Practicing
such
extrava¬
gances has reached such a momentum
that an imaginary prosperity will
ing economy' to keep pace with a
rapidly increasing' population. The;
generating capability or more
and one-half times the capacity of the entire
one
at
are
criticized
766.000 kilowatts of new
than
debts
for many,
ingly, all signs point to even better ,
many years, but the philosophy; "I'll
results in 1956, while the long-term
outlook is for a continually expand- ;;> cry tomorrow," continues at an ac¬
completed
companies
System
the
1954
and
1953
will
height.
books
American
c'0nsntJd^1loll1i;)r®r
the Middle South
.
each party will endeavor
year,
give away" the other. Neither
strongly recommend a reduction of unnecessary
expenses—personal, public, or private, even though such
1955 has gone, into the
as one of the best in
year
record
continuation of this progress.
expected
the
in
System
In
v
to "out subsidize" and "out
one
governmental assistance./
ing economic conditions of the Middle South has come
a similar gain in the demand for electric energy.
Recent
system operations and budgeted future
vides tangible evidence of the faith of
w
1956 is election
Since
inevitably accompanies
that
ference
and improv¬
increasing industrialization
V
-
ambi¬
order
vast quantities of growth capital it needs
sources, free from the bureaucratic inter¬
in 1956.
with
Along
Company
and Ohio Railway
Fifty million stockholders by 1965! That is the
tious goal American industry ought to set itself in
to
Continuing development of these resources
should result in increased industrial employment in the
native labor.
Middle South
-Av-.r,"-"..r;
President, Southern Commercial and Savings Bank,
St. Louis, Missouri;. > ?
•
; . :»
;
'
'
to offer, such as ample fresh water
community purposes; excellent air,
and water transportation facilities; extensive oil
gas reserves and mineral resources; and plentiful
and
industrial
'
Chairman of the Board,
the Middle South has
for
A. (** ELAM
••.•V't-
EATON
S.
CYRUS
■
64
Continued from page
The first of these is
will encourage
a system of price supports which
production of readily salable commodities
Continued
on
page
68
Volume 183
Number 5460...The Commercial and Financial Chronicle
Continued
from
to
65
page
well
as
Union leaders
Unionism: Voluntarism
democracy, justice, and equity
if
they
force
Trade
For
member¬
hardly bespeak
can
The
discipline
as
of
Or Coercion?
..."
organizational
loyalty,
ship esprit de corps, by demand¬
ing union and closed shop clauses.
American Trade
by
lose
and
(327)
unwilling
workers
into their ranks.
Union Proclivity
Monopoly
Another instance of the coercion
■
principle
unions'
is
in
seen
proclivity
sometimes called
darity."
for
the
monopoly,
"unity"
Monopoly
trade
or
"soli¬
involves
to force prices above
power
the
petitive prices,
a power
subject to ple
against
monoplies,
we
the Sherman
monopoly power entails the coer¬
deprivation of consumers and
monopoly laws,
so
forced
government stops
cive
an
uneconomic
Monopoly,
in
of
use
short,
the
resources.
To
the
protect
proposed
American
other anti-
vigorously
trade
unionists
would
have
well
as
Continued
peo¬
as
on
to
sweep away certain cobwebs from
their
thinking;
The
"lump-of-
work*
theory would have to go.
featherbedding and
and .with; it
/
■
;
the slowdown. The machine would
have
.
-
-
h.
be
to
viewed
as
wealth- !
a
creator instead of a job-destroyer. •.
Time studies, the thorny issue in"
the Westinghouse strike,; would!
be
encouraged
as
instrument', <i"-f
an
pi/efficiency. Typographers would
stop demandingvipay for setting
/v; /• ^bogus/ *type./Bricklayers would
'///Off drop
daily \ quota/"' .restrictions:.
u.
.
Musicians
ciousness
iC
would
drop
the; spe-i
of!"stand-by" musicians./
Painters/would < welcome
spray
jguns./.S And
,
.
automation j- would
neither be feared nor/used as an
/
///??•/
.
excuse for national' planning and
a
preduetipnrcutting 4-day,f 32-^
hour week. Thus, as the worker's
marginal product-rises, his wages
inevitably move in/the
would
direction.
same
*
"
,
// ////',:/
.
f For /
another/ example of " the
efficacy /of /voluntarism, let us
view the
case
bership.
statement
voluntarism
coercion
made
eminent
is
this
trade
a
.
of compulsory mem¬
That
to
superior
is
in
seen
by
year
unionist
a
so
.as
Charles Geddes, Chairman of the
British Trades". Union Congress.
Mr. Geddes said:
/
"I do not believe that the trade
union movement in Great Britain
live for very much longer on
can
the basis ef compulsion.
people
belong
.
to
.
.
Must
.
starve
or
us
whether they like our policies or
not?
Is that to be the future of
the movement?
No, I believe that
trade upion card is an honor to
a
be
conferred, not a badge which
signifies that you got to do some¬
thing, whether-you like it or not.
We
want
the
right to exclude
people from our union if neces¬
sary, and we cannot do that, on
the basis of 'belong or starve.'"
"
This Geddes statement is in ob¬
vious disagreement with the prev¬
alent trade union opinion in the
U.
Much of Procter & Gamble's present success stems from research started
This opinion is manifest in
opposition to our so-called
S.
the
"right-to-work"
18
In
States.
laws
view of
passed
ten
by
years ago...
and the future promises to follow the
pattern
same
the Ameri¬
tradition of freedom,
it seems
incongruous that such a law as
fright to work" was ever neces¬
can
sary.
During the past
,
duced five
:
As
Judge-E. C. Nelson
in last year's Santa
Fe
case,9
we. have
the
First
Amendment
guaranteeing "free¬
dom of assembly."
Yet is com¬
America: A
us
two
*
the
can
no
can
toothpaste,
a
continuing
program
of product develop¬
gives Procter & Gamble the ability to ad¬
just to
shampoo. A brand
new
occur.
It is part and parcel
conditions and
new
demands
*
a
took ten
of the Company's
*
success.
*
And Procter & Gamble has long made a prac¬
Each represents the final result
planning, testing and re-testing
they
growth and progress—and in it lies the Com¬
pany's greatest promise for future
some cases
as
tice of
sharing its
success
with its employees-
through Guaranteed Employment, Pension and
over
long period of time..
Profit-Sharing Plans and other benefits.
union
a
job, how
union logically force union
a
membership
the
on
tion of the worker's
cion
their development in
years or more.
longer unfairly
condition of his
a new
butter has also been added to the
of research,
ly, a prohibition of the employer's
"yellow dog" contract. Now if the
worker not to join
a new
ment
Company's growing list of products.
year,
violated
by
compulsory
membership? We have, deserved¬
erty
a
shortening,
While they were all introduced within about
his "life,
liberty
And, as¬
suredly, is not the worker's lib¬
the worker
and property."
guarantees
employer
new
detergents and
of peanut
pulsory unionism consistent with
free assembly?
We have the fa¬
mous
Fifth
Amendment, which
force
new
This
Procter & Gamble intro-
year,
products to the housewives of
new
Texas
reminded
on
or more
is
for the
wrong
surely
then
union.
As
same
jqb.
it
late
Procter
coer¬
&
Gamble
employer,
is wrong
the
Roosevelt said
condi¬
If
for
the
President
in 1941
during the
union shop struggle in the captive
coal mines: "The government will
never
compel this 5% (of unor¬
ganized miners) to join the union
by a government decree.
That
CRISCO
FLUFFO
•
BIG
OXYDOL
•
DASH
•
TOP
PEANUT
PINK
•
BUTTER
DREFT
JOY
•
GLEEM
CREST
•
DUZ
•
•
SPIC
&
SPAN
TOP
SALTED
CASCADE
/
would be too much like the Hitler
BIG
PEANUTS
IVORY
•
TIDE
•
FLAKES
•
•
IVORY
SOAP
•
CAMAY
LILT
•
•
methods toward labor."
LAVA
Apart from
the incongruity
of
captive memberships, unions stand
9
Sandsberry
Court, Amarillo,
v.
Santa
Texas,
Fe,
Feb. 6,
District
1954.
•
DRENE
•
PRELL
•
SHASTA
CHEER
BLUE
SNOW
*•
IVORY
P & G
WHITE
en¬
between
merger
Sheet and Tube
equated to compulsion.
com¬
the
and
Bethlehem Steel and Youngstown
be
can
that
Act
untarism in action. 'To cooperate/
'
//
have
vast economic abuse. Unregulated
is the principle of vol-
wages
67
NAPHTHA
•
PIN-IT
PARTY
CURL
a
host
page
69
Financial Chronicle
The Commercial and
€8
FRANK
Continued from page 66
Business
reached
;
inter-economic
necessary.
The
next
Frank F. Elliott
of
use
sales
product
..
,(^
it
tints
and
sales
room
salon
in
tones
rival
the
and
sterile
W.
E.
Endter
automobile
an
those
in
dress
a
appliances has
kitchen
of
white
given way to a galaxy of color which in itself is often
the deciding factor in the sale of Such items.
Hard-headed
businessmen
have
not
casually, com¬
the demand, years ago, for a
for painting the exteriors of new
houses, with the first
practical two-coat system; arid followed that with the
first one-coat house paint; Today they are developing
bright, fresh colors and Synthetic vehicles that assure,
longer-lasting beautiful finishes for everything inside
grains,
clear
our
handsome
and
stone
colors
functional
protective
Devoe chemists
coatings
and
textures,
metals—and
based
Devran epoxy resin.
own
for
Whole
opening
in
role
on
such
BAYARD L.
striking
developed
Southern
new
synthetics
ing
as
1955.
winter
The usefulness of Devran,
up.
The paint industry is assuming
business;
is now undeniably
a
it
has
the
For
to maintain competent research and
departments.
summer
reliable
Certainly,
if
we
to
closely
fire-retardant finishes and
the future for the paint
a
tries
expanding
is unlikely, the paint industry should not feel
its effects to
a
serious extent.
the paint
industry is
to reflect
a
the
industry is bright. Even if there
reasons
curve
than
on
the
industry will follow
"favorable
side," if
relationshp lof the
end appearances of a product to
its sales
the fact that the American public
for
initial
of
States
and; industry
more
along with 162
business
of
new
Generally
in¬
of
Residential
now
added
the
8,400
during the
company
200,000th *customer,
in less than six
w
same
countries
In
hold
these
favorable
a
circumstances,
a
years.
kilowatt-hour annual
use
be
ness
over
hunderd
we
have
sidering
pause
12%.
the
steadily
tical
leap
somewhat
will
be
,
consumers
pansion
which,
trend of
more
in
my
view, will continue
than two-a-week.
its
present
fifty-sjx
also
election year, and
years"
to
see
when
what
on
'we
effect/
adversely
business.*
E.
S.
Evans, Jr.
affected
The
affect
in
fact that this is
expansion plans
any
a
now
this country.
population does reach an expected
in 1970—and we passed the 165
million mark this past summer, with the birth of 12
million babies in the last three years alone—the market
200
prospects for the company's area include the encourag¬
ing number of new industries and present industry ex¬
the
of
political year
under con¬
sideration; plans based upon .the anticipated capital
expenditures and thef- continually growing market of
changes.
should not
.
favorable
an
elections may have
After
the
busi-
a
and
by political changes in 1956—or the possibility of poli¬
$29,157,065 for 12 months ending Nov. 30 represent¬
ing an increase of 8% over the same period in 1954.
to
some¬
However, I do not feel the business
of
add
tremendous
grown accustomed to eon^4"
election years as sort of
"economic
expenditures to $69 million in the
Gross revenue reached an all-time high
should
such
actu¬
which
momentum
automobile
happens to be
outlook
which
the
through
had
we
we
housing
of 1955 literally carried
these
valleys of seasonal
Ninteen
-
construction
factors
be
fluctuation.
Over $9 million was spent by Atlantic City Electric Co.
new construction
during the past year, bringing the
Economic
when
that
fluctuations
The
year.
economy
:: us
cus¬
.
to
greater extent than in 1955. After
a
one
expected
tremendous
The: increase
Future Looks Bright
continue
should
5
.
2,876 kwh.
past six years.
business
experience
not
normal
might
gain of 50,000
increased
was
what
year.
was
EVANS, Jr.
However, seasonal fluctuations prob¬
momentum
did
ally
lines at
new
S.
speaking,
year
economic
On;
corihected its
electricity in the past 12 mouths
color
characteristically de-
popu.r
good reason to regard the future with
ably will be felt to
all, last
for
total
other
prospects.
good through 1956.
customers every
There.Were
Oct. '1
L. England
is
have
E.
expansionsare-.
company
tomers
and
Canada has also
President, Evans Products Company
;
than two each week
week.
use
on.
exceptionally rapid rate of
and
Canadian
no
potential, plus
fcires to enhance the beauty of their
homes at the
time that they increase and
protect their value.
that
"depression business," but rather
the
barometers
the rate of
in the
time goes
as
an
confidence.
our
This is not to infer
conviction that the paint
business
ether
a
ENGLAND
being added to the
;
anticipate
merchandising techniques,
business recession, which in view of
economy
the United
the area, constant addition to indus¬
waterproofing-type finishes,
utilize fully modern
experiencing
order and flexibility. It is evident from the amount of
foreign capital being invested in Canada that citizens of
-
try coming into southern New Jersey
and greater all year use-of electric¬
ity. At the present "time new indus-
B.
more
Her economic system and
.institutions combine a* high degree of opportunity with
..
product development
continue
even
lation growth in recent years.
picture
of the area will still be brighter.
The equalization of peaks is prob¬
ably attributed to the diversity of
new produets such as
quickdrying, easily applied, odorless and scrubbable
paints;
we
.been
which the world needs and will prob¬
resources
ably need
dicate that the 1956 economic
market requirements with
and if
Despite the wheat problem Canada generally has the
(system output) exceeded
peak load, reached in August of 1955. Other
new
paint manufacturers
once was, even in the Prairie
economy, the effects
decline in farm income cannot be regarded lightly.
kind of
peak electric demand
research.
become imperative for
a
Jersey had another notable year dur¬
the first time in company history the
Possibly this is where the future of the paint industry
lies.
Technological developments /have been- so rapid
that
if
of
New
th^ .plastics industry, and is swiftly becoming
important factor in chemical
an
as
Canadians
vistas in adhesives, electrical insula¬
-new
American
related to
keting problem, which has been aggravated by U. S.
surplus disposal policies, and related closely to it a
farm income problem. Though wheat is not as important
view
tion, laminates, plastics—even the tool and die industry
are
in this country and the United States after the
high level
of sales recently.
Moreover, Canada has a wheat mar¬
1956.
however, is not limited to the protective coatings field
alone.
1955 will be sustained1:"' There might*" easily be some
slackening in the demand for houses and automobiles
of
•,
growing appreciation for beautiful1 wood
a
ornamental
"V;/,//
<
feel, therefore, that figures on market saturation are
significant each year and the possibility of a better
year is always with us if our promotional efforts are
adequate. Certainly this is the outlook for both the
valve and fitting and the plumbing and heating industry
,
But the demand is not for color alone.
anticipated
-.(with the unfortunate exception of grains f promises to
remain strong.
Investment programs are being stimu¬
lated by the favorable export prospects, by the growth
less
home, for manufacturing plants, trans¬
of every type, private and-public
everywhere.
year,
year
tinue to support a high level of consumer expenditures,
and world demand for most of Canada's basic exports
I
facilities
construction
former-peak
tion, but in the light of available information I see no
major slump in the immediate future. With technology,
moving so much more rapidly today than it ever has
before, new products quickly obsolete those in the hands
of consumers thereby stimulating the active replacement
market that is keeping the American economy moving.,
Intelligent sales promotion is the spark that is neces¬
sary now to keep our markets expanding.
And since
everything that is consumed has to be produced, full
employment will provide the dollars for continued buying.
answered
quicker and better method
the
-
including the
of 1953 when it/
$24.4. billion.* An upturn was /•
previous
any
may, of course, be temporary or fluctuating
declines in some lines of the nation's industrial produc¬
Our research chemists at Devoe & Raynolds
outside
$26 billion in 1955,
over
which is substantially more than in
There
turn puts new pressures on research.
or
uct will be
is equally
for/1956
The Gross National Prod¬
reduced.
new
motional efforts.
plicated their production, inventory and distribution
problems. The driving force is their customers'—the
result of an urge for something "different."
We now
have a competitive suitation which often makes finish
and color the only obvious difference between similar
products.
This chain reaction—consumer demand-tosales outlet-to-manufacturer-to-industry suppliers — in
portation
employment
-
black—or white. The
was
very
of the domestic market, and by the .rapid rate of tech¬
private ..bath, toilet or running water.
More than
9,000,000 units trhd only cold .piped water running inside
nological progress. Also important is the fact that work
the structure, biped water outside the "structure or no
on
the St. Lawrence Seaway is now proceeding;- and
piped running water at all. More than 8,000,000 dwell¬ "that the-way has finally been opened for the con¬
struction of the pipeline which, will give Peace River
ings had no private toilets. Adding'farm-dwellings to
this picture would, obviously, multiply these figures ""natural gas an outlet.
" many times over.
'"
/
I do not wish to suggest that the Canadian business
It is clear that the potential of the plumbing and
picture is all good with nothing but cleaf weather
heating modernization market is fantastically good. The
ahead. Some of the manufacturing industries are still
industry's success in tapping that market in my opinion v faced with real difficulty and we cannot assume, that
however, will be measured in terms of its own pro¬
the rate of economic expansion which characterized most
spread into many fields
where the public heretofore could
have its choice of any color only so
as
of
evidence
easily offset any continuing dip in new residential
provides further economic insurance for
plumbing and heating manufacturers and dealers." The
United States Census of 1950 showed that 2,548,000 nonfarm dwelling upits were dilapidated and without a
has
long
production constituted a record,
new
high ground, and un¬
employment- which had become -a<*
problem last winter, was sharply
construction,
stimulate
to
.
nadian
(
could
^color as a feature of'
consumer
a
readily
hopeful—on the basis of all present
indications that this record will be
The
been
Today's
largest in the paint industry's history
and we at Devoe & Raynolds are
a
has
home, even in those ofpnore .modest "dtSigh'r >■alone/the business outlook for the
contractor-builder doOs not "find"4" lushomes-: yearlymonths of 1956 is bright.
If
weather
conditions are reasonably
marketable unless they are equipped with a
H. L. Enman
second bath. The medium and higher priced homes not
satisfactory, the problem of winter
employment should not be nearly so severe as it was a
only include a second bath but now frequently feature
a
bathroom for every bedroom and additional comfort
year ago. And total production for the first half of 1956
at least should be at a new record high. Growth of pop¬
facilities adjoining basement recreation rooms.
ulation and of average wages and salaries should con¬
An
almost
unlimited modernization market, which
in each
than ever
chandising value as well as their
prime function; prevention of rust,
rot or spalling.
Sales volume- last year was the
„
outlook
close
a
.
is linked to that of
joying broader fields of application, but more
before are being used for their mer¬
■'
j
was
general industry! in a more definite manner than at any
time in the past.
Protective finishes are not only en¬
1,956. *
The
to
ing phase of our business despite the fact that home'
expected at the beginning of the
building declined from a rate of 1,300,OliO/iew residential
year, but the surge forward which
starts in the third quarter-of 1955 to a rate -of fewef
actually occurred was beyond the;
than 1,250,000 starts during the last-three mpnths of the year. The basis for such optimism stems-from thg-jecen^'forecasts of the most sanguine. '/v.,
but well-established trend toward the ^ectmd:bathroom
On the basis of current momentum
Raynolds Company, Inc.
Division of the Chemical, Paint & Metallurgical Dept.,
;
Mcrritt-Chapman & Scott Corp.
in
,
optimistic in the plumbijig and heat¬
ENDTER
President, Devoe &
exceeded
,
substantial
this
drawing
just
year
reached
:
expansion, both in indus-'.
try and In public works, the valve and fitting industry, -ihayi- logically
anticipate another prosperous year.
will lead to disaster.
of the paint industry
The
good one for Canada, more than fulfilling the expecta¬
tions which were generally held at its beginning.
Ca¬
and
With
ENMAN
President, The Bank of Nova Scotia, Toronto, Canada
continued
American agriculture of its fair
nation's economic health. Any other course
The future
II. L.
ac¬
flood control
new
out the nation.
assure
E.
works
Public
months.
including
highway spending is going
something finally is- being
done in a big way about providing
additional school facilities through¬
up
cooperation phase of our attack
with a concentrated effort by
W.
20,000 kw generating unit to serve process steam and
by-product electricity to DuPont Chambers Works. In
January, 1955, we added 75,000 kw to provide for growth.
We plan to spend over $14 million for new construc¬
tion during 1956.
this year,
labor, industry, and agriculture to determine the cause
today's "price spread," and must be followed by a
this spread, eliminate the iarm
share of the
equipment
and
and reclamation dams will be started
realistic effort to reduce
and
12
tivities
of
squeeze,
plants
new
of
nearly $40 billion for 1955.
indication that industry will invest even
,
,,
.
.
for
rate
begin
must
ills
farm
on
provide electric power for future expansion, the
has announced a new 75,000 kw turbo-generat¬
ing unit at its Deepwater Plant which will be completed
early in T958. In addition, we are constructing a new
heavily in capital goods during 1956.
Large builders predict an average
increase
of
10%
in private non¬
residential construction during the
more
effective method
to be placed
farmers to
curtail their productive capacity, place some of it in
reserve, and increase the fertility of these unused acres,
we can not only help reduce our surpluses, but we can
also assure ourselves of additional, high-quality farm¬
ing capacity for the times when all-out production be¬
permitting part of our "farm factories
in standby status.
By compensating our
of
comes
spending
record
a
There is every
surplus; we must devise an
of
times
To
F. ELLIOTT
President, Crane Co.
is a ready market, such as
high-quality cotton and wheat, to name only two.
The second is some form of a soil fertility bank. Uur
farmers must be able to curtail their production during
is
Thursday, January 19, 1956
.
company
•—products for which there
A
.
.
(328)
all,
million
if
our
persons
potential here
certainly justifies
continued
Continued
expansion.
on
page
70
Number 5460
Volume 183
t
Continued .from page
The Commercial and Financial Chronicle
...
67
-
•
•
■
&
day. 380. steel plants and kept self.12. Joint monopoly is feasible pliance of businessmen are for¬
out nearly two months." I whenever the affected demand for midable. - The
Taft-Hartley law
submit therefore that the power the good or service is inelastic
may ban secondary boycotts and
to< shut off, the labor supply of enough to permit the shifting of
sympathy strikes but it is a brave
ah Industry at a stroke-is appar¬ added wage' eosts-to consumers. and
perhaps foolhardy employer
ently the power to cut off a na- Such a situation is common in Who will seek enforcement *3 sab¬
Itfom from Its livelihood, to starve the milk-delivery, laundry, dry- otage and sags in
workmanship
it, and, in short, to hold- it for: cleaning, glazing, and building -are also illegal but difficult to
ransom.
construction, fields. While it is prove.
•
;
:
^
In last year's Louisville
The legalization of private co¬ true that in 1945 the Supreme and Nashville and Southern Bell
ruled
that
ercion is seen perhaps in a more Court
monopolistic Telephone strikes trains were de¬
pernicious form of monopoly — price-fixing is legal only if im¬ railed and power lines, torn down.
posed by the union alone, the Slowdowns,
joint monopoly, sometimes called
however, are legal,
"joint labor-management commit¬ ruling ignores the easy out of cor¬ according to this year's U. 3- Court
porations of accepting the union
tees" or "joint boards" but more'
of Appeals 2 to 1 ruling of leg¬
suggestion
of
joint
monopoly,
frequently simply a collusive rap¬
alized "harassment" in the Per¬
saying they were "forced" to ac¬
port between two regional or na- cept (which oftentimes is
true), sonal Products Co. case. This in
t i o n a 1 monopolistic bargaining h
The weapons of coercion in the
Continued on page 72
units to exact tribute from the union arsenal for forcing comone.
V$:;V
them
American Tiade Unionism:
Voluntarism
(329)
or
.
and
of corporate
practices even indi¬
rectly constituting collusion or re¬
straint of trade.
But
♦
'
,
the
with;
\
Norris-LaGuardia
Acts,
i;
said:
the trade unions from
anti-monopoly statutes and
■legalized, if not encouraged, indus¬
try-wide and trade-wide unions
.the
a
of
the
•Court
the
all
to
abuses
in
and
monopolistic
exposed
union
words
the
in
dangers
the
of
to -' the
raw
could have
production
page.
and
monopoly.
"Food,
enemy
a
host of
practices. As
result, the American people are
bargaining
other
;
the public safety-Hall will be
^exempted
and
come
ping, housing,
have
we
will
materials, ship¬
the public health",
dan¬
gerously affected.
Saicl Defense
Secretary Lovett of the steel strike
the -Korean War:
"No
during
and
Clayton
distress
American people." Of the railway
strike in 1946, President Truman
have
as
so
crippled
our
has this work stop¬
•
No form of bombing could
taken
out
of
For
production
i.e.,
consumer,
in
most
(and ironically)
13 There
frequently
the worker him¬
12 This
Ibid.,
point
is
developed
by
are
also legal loopholes in th3
secondary
boycott
ban
cargo" clauses in union
Simons.
2 ff.
p.
such
"hot
as
contracts.
'
Supreme
Hutcheson
decision;
of 1941:
"So long as a union acts in its
-self-interest, and does not com¬
bine
with
licit
and
to
be
non-labor
the
illicit
the
groups,
.
.
distinguished by
not
are
.
judg¬
any
ment
regarding/ the wisdom or
^unwisdom, the Tightness or wrongthe selfishness
ness,
or unselfish¬
of which the par¬
of the end
ness
I ^
ticular
union
activities,
means." io
f
•; -
-
the
are
-
trThis philosophy is clear. Unions
to be the sole arbiters in their
are
problems. The affected
^economic
management, unorganized work¬
ers, union membership minorities,
stockholders, consumers, apd gen¬
eral public are to stand aside and
ai
trust in, the wisdom and good in¬
K
tentions of the labor leaders. Will
■-1
'ti
not such sweeping license lead to
".i
.the same headiness found jn
19th Century trust" operators'
©f "the
Unions
.
V
XT
cry
public be damned?"
Legal Monopolies
as
Organized
discrimina-
labor's
lory but
legal monopoly enables
unions to commit all the abuses
from which trusts and cartels
are
justly prohibited. On this score,
Thurman Arnold, then Assistant
Attorney
General
under
the
Roosevelt
Administration, charged
before
Congressional
a
Commit¬
tee in March, 1942, that the Team¬
sters and the
"'adopting
the
building trades
the
that
had
con¬
Court
demned in the
were
tactics
same
Supreme
of the Alumi¬
case
Company of America—divid¬
num
ing territories where goods could
be
sold, erecting protective tariffs
and creating
condition of scarcity."
around communities,
a
Union monopolies are local, re¬
gional, and national. Local mo¬
nopolies frequently restrict their
ranks
to
supply
For
a
-J.
prices.
of
age
average
monopoly
of
case
in New York
lence
be
of
violence
out-of-state
of
seen
Local
in
807
City, which by vio¬
threats
or
drivers
can
Teamsters
trucks
to
at
......
the Holland Tunnel extorted $9.42
for each
large truck and $8.41
.
for each small truck
-
city.
When Local 807
with
of
violation
entering the
was
charged
the
Federal
Has this
Anti-Racketeering
*
preme
Act, the SuCourt again exempted la¬
Justice Stone dissented: "Such
:can
if
valid,
common
law robbery an innocent
would
render
-For
National
labor monopolies are
industry-wide bargaining, which can lead to paralyzing industry-wide strikes. This
happened
•
^railroad
year.
last
dosed
Eastern
and
Gulf
L. Lewis of
strikes:
gory,
Acthar (A.C.T.H.
:
:
faced with
or
a
product
p,on-food cate¬
perhaps the Armour research and de¬
velopment approach will help you find the
best solution.
In any event, it will pay you
to ASK ARMOUR.
research has also made many
one
ports.
ARMOUR AND COMPANY
of his
"Our
economy
i3
gradually being stagnated. As the
days progress, tonnage will go off
the railroads, factories will close,
"
-
-ARMOUR
Beef
10 312
«
curled
-
T.'\ Armour
.'i
problem in either the food
upholstery, leather products and
fertilizers. : •
-
It ha?
r
as
other life-saving phar¬
Next time you are
divergent fields.
glycerine,
many
experience, as recently
Spring's dock strike which
■Said John
coal
maceuticals.
the wealth of experience
ammonia,
developments such
Armour) and
you
example, chemicals, adhesives, coated
been U. S.
os
packers,
hair for
,
"in Britain's dock and
strikes Ihis
on
abrasives,
in
tant
Company is best-known as one
Armour Has to offer in many
pastime."11
.evidenced
draw
contributions to medicine, through impor¬
occurred to you: Even though
of 'the nation's heading meat
an
answer,
ever
Armour and
bor units from the law of the land.
-
>
Product Problem?
painters is 60, in the country
whole, 55. The power of a
local
the
squeeze
higher
exact
example, the
N. Y.
as
to
newcomers
and
U. S. 219.
11 315
U. S. 521.
Lamb
icals
•
General Offices
AND COMPANY makes more than
Veal and Pork
Coated Abrasives
•
•
Smoked Meats • Flash Frozen Meats •
Curled Hair
•
Glycerine
•
Chicago 9, Illinois
•
2,000 products for homes, farms and industry
Canned Foods
•
Sausage
•
Butter
•
Eggs
•
Cheese and Poultry • Lard and Shortenings • Adhesives • Ammonia • Chem¬
Industrial and Household Soaps • Pharmaceuticals • Veterinary Medicines • Leather •
Wdol
•
Fertilizer • Animal Feed Ingredients
v
70
The Commercial and Financial Chronicle
(330)
Continued jrom page
some
as
of
our own
will
inflation
force postponement
'^Utilization
time.
(2)
new
the
This un¬
first half of
some
M.
basic indicators such
as
and
of
as
Frank
new ones.
Prospects
a
in manufacturers'
powerful impetus
had
to
i
high-level employment
increasing purchasing power
buy better goods and services.
tained
a
business
splendid
year
in
a
ninth
products
Ten years from
across
now,
RCA will be doing business at
of the electronics
a
year.
industry has doubled while the Gross
National Product has increased by only 35%.
1964, the value of electronics should be more than
triple its 1950 value while the Gross National Product
may not have quite doubled.
Many facts lead to
our
that
assurance
the
growth of
electronics will continue to speed ahead in the expand¬
ing American business economy. In ten years, our popu¬
lation
important characteristic
will
have
alone represents
increased
a
by 26 million
ent
Wisconsin and Arkansas.
is that the rapid
upsurge of business in 1955 brought
year
economy
constantly in mind
by leaders in banking, business, and
materials
in
sector, business and financial leaders, as
optimism evidenced by bankers at this
stage of the business boom implies that the
legitimate needs for credit on the part of
ernment, and
business, gov¬
healthy and sus¬
consumers will be met. A
tained flow of credit into production
and consumption is
essential to the economic
well-being of the country. But
cautious optimism also implies that
bankers will scru¬
a
i'j
<
In
the
offing
products
and
faculties
of
seen
we
is
an
services
their
dreams
that
and
new
more
improved elec¬
substantial
reason
impressive
of
array
electronic
that
of
yesterday
tomorrow
become
will
bring
twice
as
realities,
even
and
greater
Product Leaders
as
black-and-white
and
as
trend
cernable
of
only
as
->•>
•
potential billion dollar
a
fully apparent that
was
1956
sales,
output and lower prices.
year
the RCA
our
Victor Television
distributors will sell
whatever quantity of black-
general idea of
a
proposed stepped up
plan to produce about
our
we
color receivers in the first half of 1956
in the last half of 1955.
many
produced
Public
in
color is being sparked by heavy
programming schedules—particularly
National
Broadcasting Company which
interest
increases
in
those
the
of
color
its
Fall
five-fold
schedule
over
the previous
ample to warrant the
volume purchase of color television receivers by the
public. We propose to build color TV receivers in vol¬
ume and to promote volume sales.
Color
year.
entertainment
is
Continued
High
and
heavy sales of radios
were
Fidelity
experienced in
1955 as consumers purchased approximately 13,000,000
receivers, bringing to more than 125,000,000 the number
of sets in
use.
Introduction by the RCA
Division
clock
of
outstanding
an
virtually
radios,
breakable plastic
Victor Radio and "Victrola"
new line of portables and
all of
"impact"
them
cases,
packaged
in nonresponsible for a
was
tremendous increase in RCA radio
sales volume.
Another
significant factor was the continued boom
high fidelity music reproduction systems. With the
industry reaching an estimated $50,000,000 in sales of
high fidelity, RCA gained an increasing percentage of
the expanding market with the successful merchandising
of a complete line of assembled high fidelity instru¬
ments ranging in price from $69.95 to $1,600.
in
Phonograph Records
During the coming
year, the record industry will con¬
tinue advances it has made for the past ten years. Sales
should
ing
television
marked
a
increase
because
of
the
greater
appreciation on the part of the public
for better music, higher quality records and more at¬
tractive packaging of records.
and
Price
reductions, inaugurated by RCA Victor at the
1955, also are having a striking impact on the
of
start
industry, justifying
the* threshold of its
our belief that the industry is on
greatest period of expansion. These
price reductions broadened the base of the industry by
making
to
possible
it
for
more
people
than
ever
before
buy and to enjoy good records.
factor
key
in
the
expansion
increasing interest of the public in
fidelity music.
every
is the rapidly
phase of high
Pacing the growth of the industry, RCA Victor has
new
merchandising techniques, designed to
make
records
more
easily available to all potential
customers. Tl^ese techniques include our Store Moderni¬
zation Program which encourages dealers to re-style
introduced
:their Layout at a price they can afford; Personal Music
Service Plan which assures the dealer of a sale and a
profit
—
even
on
merchandise temporarily out of stock
—by giving the customer direct-from-factory delivery;
and the Gift Certificate Program. We have also worked
broaden
the
market
for records
in supermarkets,
outlets
by opening up new
drug and variety stores,
others.
Government Activities
re¬
use of new electronic products and services for in¬
dustrial purposes. The end of 1955 finds sales to
industry
and government rapidly closing the
gap of dollar-volume
""TZGirfrT
show
acceptance
be expected in
color
major importance that first became disa few years ago continued in the increas¬
wiMfriV
"Victrola" Phonographs
Radios,
among
may
ceivers, industrial TV, TV transmitting equipment, elec¬
tron tubes and components, microwave
relay systems,
military electronic apparatus, radio sets, "Victrola" phon¬
ographs and high fidelity instruments, and records. The
replacement market also should be particularly good,
and service operations, including installation and main¬
tenance of products, should attain record dollar volume.
A
us
color TV production,
were
to
Outstanding sales volume in 1956
such fields
closed, it
mass
give
of
retail
;
1955
Another
popu¬
achievements.
:
notwithstanding.
will continue to produce
rate
-
speak well for the creative
today's scientists and engineers. We have
believe
,
and-white receivers necessary to satisfy public demand.
a
good business by exercising prudence and moderation in
their daily affairs. In the
public sector, it is essential
that our fiscal and
monetary authorities maintain a high
sense
of alertness in
adjusting policies to the rapidly
unfolding business situation.
advanced
-
Michigan,
in other industries.
that the
consumers, can contribute to the continuation of
cautious
Indiana,
industry is the ability
new ways of harnessing the electron
to assist in all kinds of
jobs now done by other means
The sum total of these de¬
crucial period for decision-making
in both the private and
public sectors of the economy.
The
Illinois,
for confidence in the future of this
and residential construction.
as
This
of scientists to find
economy is ooerating very close to
Fred
F. Florence
capacity. At the same time, however,
signs of weakness have begun to
emerge in certain key areas—notably automobile sales
the private
of
lation too, can be customers for
tronic products.
And an even
sion must be kept
well
markets
Virtually all of these people, and the rest of the
to a point where the
dangers of both inflation and reces¬
In
combined
people.
market equal in size to the pres¬
new
date in the
velopments implies
By the end
of
of the business situation at this early
scarce
than
of Electronics
According to our surveys, the growth of the elec¬
industry will continue to be more rapid than
most other industriels. For example, since
1950, the value
business outlook.
means
mer¬
tronics
of economic growth, but in view of the high level
activity and the lessons
of past experience, a cautious tone is
injected into their discussions of the
months, which
did
as
successive
the rate of at least two billion dollars
business
and
1955,
the country and
year, RCA sales at¬
record high, with the total passing the billionthe
For
our
dollar mark for the first time.
year
Labor
more
mean
thousands of RCA suppliers and the thousands of
chandisers who sell
abroad.
As
boosted
continued
for
personal income
consumers
RCA
per¬
begins, optimism tempered with cau¬
tion is the watchword of the banking fraternity. Bankers
are optimistic
concerning the potentialities for another
increasingly
and-sold
«"*'£•
upwards of 200,000 color receivers. Color will be an
important part of our sales and profit picture—while
we
$175 million in the
phases of electronics, including radio and television, as
the sign of an expanding and more vigorous
industry in
which RCA proposes to continue in a leading role.
As the year 1956
recent
Folsom
For its part, the Radio Corporation of America wel¬
the trend toward higher quality products in all
President, American Bankers Association
government.
have become
M.
comes
President, Republic National Bank of Dallas
the
y
Division will manufacture and
(7) The nation is experiencing an expanding economy
stimulating higher standards of living at virtually all
levels of the population.
FRED F. FLORENCE
new
Us-f.i
During the coming
"billion
much
as
Faster Growth
most
manufactured
be the first big year of color, production and
To
tix months.
The
will
business
(6)
already granted, with residential construction only
slightly below 1955. The direct and indirect benefits
from this work will go far to offset the weak spots in
the economy of this section.
T
Generally speaking, we expect a good year, perhaps
as good as 1955, but with some leveling off in the last
cf
a
TV
pointing to
year.
create vast
1956,
mits
)
Division
baby.
J
(5)
New products and production techniques, plus
competitive stimulation, will expand old markets and
given the closest attention in all future planning.
This area will undoubtely experience a record year inon
'W* -
to over-all industrial progress.
commodity prices and con¬
in commercial and industrial construction
vision
Color television is with
trend of public prefer¬
destined to boost color
(4)
Large-scale orders, already
hands, may be expected to provide
downward. Also, com¬
petition continues unusually keen, and the cost of doing
business is still rising without an accompanying increase
in the price of goods sold. These factors will present a
real challenge
to business management and must be
1956
300,000
and-white
Retailers have experienced their biggest Christ¬
in history and this heavy buying appears
destined to carry over into the first quarter of 1956 to
give the year a fast start.
debt are beginning to turn
sumer
,
(3)
perhaps longer. However, the
general trend is less emphatically
favorable than a few months ago and
Fleming
all-time record
an
account for
may
mas
and
Sam
This
coming
year opens, we
into
forward
side, black-and-white television
TV, but almost single-handedly we have continued to
lead the way in color^-which is the
brightest hope the
industry ever had, the phenomenal progress of black-
appears
sets
find the
momentum of business activity so
strong that it will undoubtedly carry
a
On the entertainment
Not only has RCA paced the field in
black-and-white
dollar baby" well ahead of expecta¬
tions.
In fact, retail sales of color
government.
As
1955 set
television into the status of
precedented
prosperity has taken
place under the driving force of free
enterprise and with no additional
stimulation provided by government.
It confounds the proponents and ad¬
vocates of the various types of isms
in
pur¬
receiver production in 1955 set
Color Television
following
significant
facts
an exceptionally bright out¬
.for
the
electronics
industry,
ence
remarkable sta¬
years
new
(1) Customer preference for qual¬
ity
products is
bringing
higherpriced items into the position of
merchandise
leaders,
thus adding
substantially to dollar volume.
turned out to be the best
three
in
to
of $11 billion in sales:
bility in the purchasing value of the
dollar which has fluctuated less than
1%
advances
economy
which in
record.
a
non-entertainment
million receivers.
look
Bank, Nashville, Tenn.
continued to exist
for
impressive headway in 1955, and should ex¬
pand to an even greater extent during the
coming year.
It is providing electronic
"eyes" to many sections of
industry and is proving to be an effective tool in manu¬
facturing, education and medicine.
The
Total value of goods and services pro¬
duced increased 9%, or over $32 billion, over 1954 and
personal income 61/2%, or nearly $19 billion. There has
on
Closed-circuit television
poses made
high levels.
FLEMING
all accounts, 1955 has
By
year
rated areas of endeavor.
point to
will continue to manufacture
products utilizing so-called waste wood, and are seriously
considering expanding the utilization of this wood. Over
the past 12 months, we have greatly enlarged our researcK'department along this line,1,
;
*
an all-time record of
8,units, representing a retail dollar volume of
nearly $2 billion. Of this total, the RCA Victor Tele¬
,
will be considerably greater
President, Third National
Further acceleration
appears assured in 1956 in "elec-
tional
12.7 square feet
feet per person in 1955; ,
is geared to an even increased
SAM M.
past and meet new situations with good
compared with revenues from communi¬
home entertainment.
vtronizing'Nproduction techniques, inventory control, food
inspection and protection, military
equipment, scientific
research, biological explorations and other
widely sepa¬
hardwon
and ingenuity.
sense
.
as
American
industry — including radio-television and electronics —
one
of the greatest quality markets in history as the
present excellent state of the na..••••-
in 1956; we, as a company,
i
the
:
Business trends and yardsticks across the nation indi¬
has increased from
of waste wood
apply
we
cate that 1956 will present to most segments of
in 1949, to 30 square
production this year
the
if
succeed
can
President, Radio Corporation of America
products field, the outlook continues to
that production has been ex¬
panded tremendously since the war. Plywood consump¬
and
treading the narrow ground between
without slipping off in either
FRANK M. FOLSOM
of some scheduled
In the wood
for example,
We
of
lessons
common
be good, despite the fact
per person
in
recession
and
direction.
nroiects
tion.
and the American people, providing that we
successful
are
particular fields of acuv-
ity are concerned, it appears that all railroad rolling
stock, special equipment and supply business will con¬
tinue at a good pace through 1956 and into. 1957. Many
projects, scheduled for the coming year, may necessarily
have to be carried over into 1957 because the continued
demand for steel has created steel shortages
"n"
doubtedly
cations and
economy
cession in the foreseeable future.
Insofar
differential
loan
the
that
expansion, and with * this potential market
there seems little possibility of a major re¬
this
With
before us,
applications carefully in order to separate
speculative and overly optimistic ventures from those
are soundly based.
1956 can well be the best year ever for the American
tinize
68;
Thursday, January 19, 1958
...
Government
to
have
the
an
work
for
important
year-end
the
effect
Armed
on
RCA
Forces
continued
operations
with
backlog
of government orders standing
approximately $275,000,000. A total of $220,000,000
government contracts was completed during the year.
at
in
The
RCA
Armed
Service
Forces
Company continued to work
with
the world, installing
and maintaining electronic equipment produced by RCA
for
the
personnel
around
One of the most important such
operation of the electronic apparatus
government.
activities
is
the
Continued
'J,
on
page
72
Volume 183
Number 5460;.. The Commercial and Financial Chronicle
(331)
Continued
Weston Adams Adds
69
page
(Special to The Financial Chronicle)
BOSTON,
Archer
is
Mass.
Frank
—
with
connected
now
W.
Weston W. Adams & Co., 55
Unionism: Voluntarism
Kilby
Street, members of the New York
and Boston Stock
Or Coercion?
Archer
........
>
.
illogical ruling, inasmuch
permits
A. E. Aub Adds
(Special to The Financial Chronicle)
'
American Trade
an
With Coffin & Burr
(Special to The Financial Chronicle)
from
full-time
for
pay
as
was
Exchanges. Mr.
previously with Har-
J
•
p-
a
dissenting, said
not -work
time.
Yet
curious
alized
union
^ideology
'
can¬
•..
.
L. B. Schwinn & Co*
CINCINNATI, Ohio —A. Edgar
the
Burr, Incorpo¬
Street, members
William T. Robbins With
Aub, Jr. is
(Special to The Financial Chronicle)
with A. E. Aub &
now
CLEVELAND, Ohio—William T.
Co., Fifth Third Bank Building.
Robbins
With
Benj. Bartlett
CINCINNATI,
become
associated
Co., Union
Commerce
(Special to The Financial Chronicle)
|
has
with L. B. Schwinn &
Stock Exchange.
Ohio—Bruce
R.
Building, members of
the Midwest Stock
Exchange. Mr.
Anthony J.
Davies has become affiliated with
Robbins
Zachar is with Hamilton Manage¬
Benj. D. Bartlett & Co., 313 Vine
Saunders,
ment
Street, members of the New York
past
and Cincinnati Stock
vestment business in Cleveland.
—
Corporation,
127
Fremont
Street.
Exchanges.
he
has
recently
Stiver
&
conducted
„
been
Co.
,p
'$
& iifi
»fe>&
,
s-.
\/„
-»■v
<
:-yJik$L
.sv.
/
the
own
his
in¬
'•'• >
♦;
Jl «4y!7,
:M&. ilh
{ - '
^V^.'-v/'V
%y
v,'
<>?<»",
;
;j
fliPl
:3£
~
.j
%
'
'
\j
our
of
leg¬
*
Perhaps the greatest source of
coercion arid violence in-our in¬
dustrial
relations. is Hhe
line.:-The
Amendments
/
shall.
person
picket
Fifth; and (Fourteenth
life, liberty,
-JH
provide;£that ^."no
or
the
due
and
law."
Time
involuntarily idle
lines, usually accomby threats of violence or
picket
panied
violence
itself.
In
this
ai
Mrl™:N
f';-i
§
fjjp
have been made
by
■
;>f|
again, however, non-strikers
of
process
N
»
be
deprived of
property without
v;
.
.
f\
year's
Kohler. strike
bodily injury was
by non-strikers, one of
sustained
whom
later
Circle
situation
Guard
eight
by
died.
In
Perfect
had
persons
gunfire.
been
Unions
freedom
wounded
claim
only
of expression. To
picket
one
that
extension
an
extent that this argument is
needed
Through the consolidation of various important indus¬
trial enterprises and their subsequent prudent manage¬
ment, the Penn-Texas family has achieved national
importance. Assets have risen from less than $5,000,000
National
called into action, after
was
picketing is merely
of
the
the
for
were
few should be
or a
the
in 1950 to
the
valid,
union
to
$125,000,000
express
itself. More than this spell strongarm
tactics and intimidation and
should
|
§
final
of
area
coercion
the
planned, with the result that
multiple activities of the organization supplement
and balance each other. This has
benefits to
brought multiple
employees, to communities and to the
shareholders.
per annum.
here
is the
PENN-TEXAS family
we
wish them a happy
peaceful marriage, impervious
y/sjj&ag
§
§
§
I
and
the CIO
are
a
couple,
and
rancor
«.
at the rate of
strength from each other. Growth
f
reunited
AFL
to
are now
new
I
want to treat in this paper is political- coercion.
Now
that
the
and
$108,000,000 today. Sales, which
J
Unionism and Political Coercion
The
than
units to draw
I
'
f
be
banned, or else our
Rights becomes a mockery.
Bill of
more
only $6,000,000 in 1950,
Vigorous policies have enabled the various Perm-Texas
meanwhile has been well
As
power.
view
the
f
temptations
of
object lesson, the
organization
might
I
an
labor
new
fate
of
its
brother
I
I
or-
ganization in Argentina, the General Confederation of Labor. Will-
,
|
f
INDUSTRIAL
PRATT & WHITNEY CO., INC.:
A leading producer of the machine tools
that
are
basic to
Established
more
mass
For 78 years the undisputed leader
the manufacture of heavy
>
production.
than 90 years ago.
<
fully
w
BROWNHOIST CORPORATION:
did
organized labor there
build up their own political boss.
They were his Peronistas, loyal
in
LIBERTY PRODUCTS
V
CORPORATION:
Important manufacturer of aircraft parts.
materials-handling equipment.
and militant. But they had created
Frankenstein
a
snuffed
st
m o n
their
out
who
e r
freedom.
Now
of the Peronista labor lead¬
in jail. Similarly did the
many
are
ers
British trade unions seek political
in
power
the
through their
ism
The British
and
of
form
socialism
No
POTTER & JOHNSTON CO.:
Manufacturer of component parts
for jet aircraft.
-
Manufacturer of automatic turret lathes.
heavy castings for industry.
coercion.
state
trades unions tried
failed.
CHANDLER-EVANS DIVISION:
Social¬
party.
own
unlimited
is
ELYRIA FOUNDRY:
A gray iron foundry which produces
longer
British trades unions avid
it
the
are
on
na¬
tionalization.
The
of
new
Federation
American
Labor and Congress of
trial
Organization
structive
Indus¬
be
can
a
con¬
dedicated
agency,
to
freedom
terial
can
and
spiritual and ma¬
well-being for the Ameri¬
workers.
*
THE CRESCENT CO. INC.:
"QUICK-WAY" TRUCK
Manufacturer of insulated wire and cable
SHOVEL COMPANY:
for the automotive and electronics industries.
Manufacturer of truck-mounted
power
shovels for
road building, etc. First in its field, and a
leader for more than 20 years.
But if diverted from
COLT'S PATENT FIREARMS
MANUFACTURING CO.:
Famous producer of Colt's revolvers.
this purpose, it has all the makings
of a powerful political machine—
66,000
locals
in
150
unions combined in
national
amal¬
gamation. The leaders of the AFL
a
super
and
CIO
are
economically and
politically potent. Yet with power
goes
responsibility. "Which will
prevail—responsibility or power,
voluntarism
or
Voluntarism
is
coercion?
or
labor's choice.
crucial.
If the
Simons'
thesis
answer
of
—
Operates important facilities in the
Owns 109
wells
CORPORATIONS:
Owners and operators of inter-continental
merchant ships.
is
incompatibility
Further information about the
Penn-Texas family of companies
may
of both.
Thomson, McKinnon
(Special to The Financial Chronicle)
ATLANTA, Ga. —Clifford An¬
derson has become associated with
Thomson
&
McKinnon,
Healey
Building.
A COKE
be obtained by writing
Secretary.
to the company
PENNSYLVANIA COAL
With
gas
is coercion,
capitalism and coercive trade
unionism may well resolve itself
the disappearance
producing oil and
in six Texas counties.
of
in
SEASPLENDOR STEAMSHIP
AND GAS CORPORATION:
this
decision
SAXON, SEABORNE A
TEX-PENN OIL
DIVISION:
Port of New York.
coercion
The
BAYWAY TERMINAL
:
Operator of bituminous coal mines
in Pennsylvania.
Ill
Broadway, New York 6, N.Y.
"',Ap<4/'4'9
with.
In
-
same
the/^ruling Jdits
Boston
to
&
State
BOSTON, Mass.
.
coercion.;v^l.^/J.5:^>^ y.£
t
l
employee
an
and strike cat cthe
of the
J°lnS rirst aoslon
*
Danaher,
.
60
Marjorie G.
added
(Special to The Financial Chronicle)
special to the financial chronicle)
BOSTON, Mass. — Richard W.
tion
while ^compelling "an
em--Clark is now with First Boston
pi oyer to pay for services clearly Corporation, 75 Federal Street,
Judge
Coffin
rated,
nosfon
injurious acts and disrupt produc-
,
of
—
been
With Hamilton Managem't
it
Is it logical to permit
workers to stall and loaf, commit
^rendered?
staff
has
ris, Upham & Co.
part-
time work.
not
BOSTON, Mass.
Clifford
71
-
72
The Commercial and Financial Chronicle
(332)
i
j
-
Continued
from page 70
♦
used
Air
Florida.
Base,
Force
...
markets
foreign
in
excellent year of sales.
an
and the Far East.
,
all phases of communications,
Sales included virtually
with
microwave
increasing accent on television and
an
Radar sales also were stepped up, and radio
sets, "Victrola" phonographs and records moved ahead
satisfactorily.
Mounting activities were reported by
RCA associated companies in 13 countries.
systems.
E. FORSTER
ALBERT
The
production
World-wide
chemicals and allied products is
of
terest and
in 1956 for the
During the current year the in¬
expected to reach another all-time high
successive
fifth
should
crease
year.
4%,
about
to
amount
in
'have just completed
in which sales
the level of
above
sales
were
than 20%
While
1954.
our
will
5%
exceed
not
The
1955.
over
gain will reflect in some measure
expanded capacities in both new and
old products.
U.
industrial
S.
production has
moved up in virtually a straight line
since the fourth quarter of 1954. The
probabilities
duction
are
that industrial
will remain
of
A. E. Forgter
movement
production should provide an
level for 1956 about 3% above the 1955 average.
average
A rise of this extent would almost equal the past long-
•
.
of-general prosperity
seems
production. During times of peace, we cannot jjxilecf-coll»Ie wlt,h
the large gain in industrial production of TSS5 to be
security-consciousness toirnake-1956
duplicated except during the first year of revival from
e
?s
"c^*
sme L,
Frtfrrf the sales viewpoint, lyao ap-'
Capital expenditures of industry probably will show1'
aji increase of more than 10% in 1956. This favorable
reflects the continued
trend
in the future.
confidence
of businessmen
The
rectly
1956
United States.
construction.
outlook
for
not
industries
that
served
are
di¬
in automobile production was
We supply materials for lacquers and for other auto¬
motive
finishes.« Certain
branches
of
the
textile
In
their
will
most
comes.
see
larger
a
the
budgets for personal
life
spite of the recent gains in corporate inventories,
are low in terms of sales and the level of
While installment credit has been rising
we
but
this
type
men
are
of
of
credit
in
gain of 1955.
1956
marked
1956 realistically and' with
This should tend to limit the
that
excesses
business correction.
would
call
4
is
Business¬
approaching
degree of caution.
tion
the
for
term program of
,
as
CLYDE
T.
FOSTER
means
voked
of
P.
MdcOrc-gor
recognition
in
in terms of
a
by
the
the
growth
companies
of
the
insurance
alleviated
tion
1955
....
over-supply
condi¬
the two previous
principally
of
to
Beside
in
the
record personal in¬
of. American consumers. Only
was
recorded
growth
average
of
in
1954.
demand
in
the past two years
approximates the
historical annual growth since the
end of World War II. It is
expected
increase
vehicles and
an
a
5% net
in vehicle registrations
increase in the
use
of
to
these
vehicles
during the year. Light fuel oils gained 7%,
responding to higher industrial activity and continued
growth in oil burners in use. Liquefied petroleum
gas
(LPG)
continued
products
with
a
to
gain
be
one
of
the
of
18%
in
1955.
fastest
The
building of highways caused asphalt demand
-U.
S.
production
a^"^me
and 8%
for gas.
of
petroleum
and
growing
increased
to gain 12%.
natural
gas
was
peak with gains of 7% for petroleum
More wells were completed than ever
-
•
rJif
experiencing
new
six
pas¬
1956 is
other
large sectors
of
satisfactory
our
rate
in 1954, were
system in 1955
of
growth
and
new
I
a
need
for
and
year
further encouraging
progressed
growth is in
optimistic
am
regarding the
general
business
out¬
both the year ahead and the more distant fu¬
The prospect of continued expansion of industry
in the Southwest augurs well for the future of the
Katy
Railroad.
v
-'•/
ture.
^
C. KENNETH FULLER
,
j
President, County Bank & Trust Company,
Paterson, N. J.
Most segments of industry and
trade in the southern
Bergen County area enjoyed a satisfactory
of operations in 1955. In view of the rather broad
Passaic
year
and
not have
better
of
our
industrial
been otherwise
activity, the results could
in the face
J
the
high volume of activity and
profitable operations in the national
economy as a whole.
New plans,
r.
*
-
Such
force, skilled throtflgtt^ontihuous training to handle the
increasingly .complex - life insurance problems of their
clients.
the
business
7% in 1955, resulting from
.
million
which
that the gain in the year ahead will
be close to this average.
Motor gasoline demand increased
Clyde T. Foster
bl
due
minor gain
The
in
acceleration
and
come
;
the
was
general
v7-a.
impressive' gain,
existing
years,
.
the previous year was..
over
This
and
look for
adaptable to all modern situations; wiRrcbe,brought out.
These new policies will be offered
by a larger sales
7%.
locomotive units
prospect for 1956.
is
merchandising and better selling methods.
States carried the American oil
industry to
operations in 1955.
Demand for the
first time exceeded three billion barrels and
the gain
year.
On order for delivery during
enjoying
are
diversification of
life
of
record
breaking
aiesel
new
to
long-
the United
recorded
four
during the
by death of the head of the family.
in
new
Industrial developement along our lines has
rraser
security and savings, rather than solely
factor
for railroad labor must be
emphasis will be given to this
phase of operations during the coming year.
of meeting the immediate financial crisis pro¬
Another
President, The Standard Oil Company (Ohio)
Strong consumer demand for petroleum products
wages
estimates for the
progress. Additional
in¬
more
any
and
comparatively
tend to think of life insurance!
later
a
also
small $6.6 billion. Un¬
questionably this gap will continue to widen, as people
crea¬
grain and cotton
-
Our piggy-back operations, inaugurated
them.
a
in
extended
a
more
basis) amounted to
some
,*
,
During 1955 sales of ordinary life insurance totaled
nearly $31 billion, while sales of industrial insurance
(sipail policies paid for on a. weekly or monthly premium
in
agricultural
additional
freight
equipment
costing
approximately
$5,000,000 and mechanized track maintenance equipment
costing $500,000.
of
expansion
throughout
general freight rate increase which
government loan which remains in storage
senger coach cars.
;
adequate retirement income. As a result,
will find people buying larger policies, and more
a
D. V. Fraaer
Katy.
Conditions
a
„A higher level of
surance with one eve to
guarantee¬
ing their families' financial security, and the other look¬
ing to
in
defense
During 1955 the Katy acquired more than $6,000,000
of new rolling stock, principally freight car equipment
consumption.
rapidly,
under
absorbed
they still
expected to be well below
moisture
along the railroad/-*
of
value
percentage
as
decrease
war
movement of the substantial volume of
held
real and practical prospect for;
millions of people'.''With greater in¬
earmarking
in
by the
the effect of
very
indus¬
try also may decline in 1956. However, other industrial
outlets for our products such as furniture, paper, major
household appliances, synthetic rubber, petroleum, bi¬
tuminous coal, metal mining,
quarrying, cement, and
road building are expected to record an increase in
activity in the current year.
the
might be granted the nation's railroads, and the ultimate
another record
of^ocial secur¬
ity have made earliest retirement
substantial
originating
served
areas,
unlikely in 1956..
plans and expansion
effects of
by the railroad,
served
the
as
proved
certain to
billion year is
A $57
the
of
The difference between a
good crop year and a bad one reflects itself materially
in the Katy's freight volume and to the extent of several
million dollars in gross revenues.
'■
I anticipate that the general improvement of gross
business experienced by the M-K-T during the last half
of 1955 will continue during 1956. Several strong
pos^
sibilities could further benefit revenues, including im¬
;
life
the
in
because
plants
year
new
the M-K-T has
persistent drought in much of the
well
The tremendous growth of pension
The expected
mentioned above.
drop
was
factor.
a
on
a
tonnage
more
Last
billion in
purchased
at
territory
thaif
they will put
of
also
were
nation
I
More
money
insurance.
$47 V2
insurance
more
And
into-life
it
record
a
indirectly by Hercules is mixed.
or
before.
ever
of
The expected increase in capital expendi¬
tures and gains in other lines evidently will more than
offset the anticipated decline in automobile production
and residential
people will have
up
slightly higher level "dur¬
ing 1955 than in 1954, but the in¬
crease
throughout the current year
was lower than the average for the
been
.
particularly promising.
pears
months
expendi¬
during the
1955 to pick up
stepped
Freight traffic
recession.
*
six
in 1955
accelerating population growth and increas.
maintenance
and
were
ings. Progressively increased wages
.
...
1954
approxi¬
repairs curtailed in the previous 12
because of depressed earn¬
PETER MacGREGOR FRASER
-Continuation
Net income in
reasons.
income tax adjustment of
an
months
Chairman, The Connecticut Mutual Life Insurance Co.~~
term average annual rate of growth of U. S. industrial
1955
last
_
f
industrial
in
will be lower for two
tures
jpipe.lin# for this movement late in 1954.
J
Lines
slight gain over 1954, but net in¬
a
mately $675,000 which did not recur
in
imports of crude oil in 1955, are attributable
movements of Canadian crude oil into the
Pacifi<* Northwest resulting from the competion of a
sidewise
a
will^show
Co.
Railroad
Missouri-Kansas-Texas
the
of
revenues
credited with
was
to increased
fairly stable in
Such
1955.
V. FRASER
DONALD
1955
come
has been less than production
World demand for petroleum
creased
pro¬
1956 at about the level of the fourth
quarter
for
nent. Full scale operation werefTesumed in Iran by an
international-consortium ,_p£. oil companies as this im¬
portant oil nation jonce more pt'ovided its oil for the
free world.
V,
,.7....7-~7
Much concern was expressed in some quarters about
oil imports during 1955.
Oil companies are attempting
to maintain imports at reasonable levels and at the
same time
satisfy the growing demand for petroleum
both at home and abroad. Nearly cne-third of the in¬
again likely to reach record
levels in 1956, the increase probably
are
"
Gross
products has increased at a more rapid rate than in
the United States and Europe's increased demand has
stimulated the search for oil oh the'European conti¬
banner year
a
more
to keep
(
President, Missouri-Kansas-Texas
supplying
S.
U.
construction
supply of capital during the year, tending
.
This is the third straight year
world.
the rest of the
the
with
barrels
billion
that domestic production
Hercules Powder Company
at
concern.
policy
tax
the higher interest rates firm.
increased in¬
World production for the first time
45% of the world's oil.
with a
compared
gain of 13% in 1955.
We
the
$5. billion
petroleum operations held
five
exceeded
Federal
will all continue to make heavy demands on
programs,
consumers.
Powder Company
Hercules
President,
wells.
invested about
industry
Although in
toward
before taxes last year.
clear-cut
a
try, and large governmental and municipal
;
in new
capital facilities during 1955, or 4% more than the
preceding year. During the year ahead over $5.3 bil¬
lion is expected to be spent.
Over half of these ex¬
penditures are investments in production operations to
.discover and develop the increasing requirement of
crude oil. During 1955, 14% of the expenditure was for
additional refining facilities.
Most of this money was
spent on facilities to improve the quality and yield of
petroleum products which is increasingly important to
oil
of
Thursday, January 19, 1956
companies' earnings the outlook for. 1956 is
uncertain, no significant reversal of the trend is anticirpated. Indications are that expansion of production facil¬
ities, stepped-up industrial research, the housing indus-
increased drilling of new
The
absence
.
insurance
that this number has declined. It seems quite
possible that this decline is the direct result of industry
concern over the attempts to make gas producers public
utilities.
It is important that this figure be watched
closely as increased gas supply can only result from
continues bright
The coming 12 months
should witness a further impressive increase in business,
particularly in Latin America, Canada, the Middle East
after
the
year.
„years
International Trade
outlook
RCA's
1947 to about 3.55%
completions increased 7% to 57,600 wells
It is interesting to note that natural gas
well completions were down 9%, the first time in recent
i
^
total
as
the
for
Guided Missile Test Center at
the Air Force's
at
Patrick
before
;
,
,.
results
provide
an
environ¬
of unusual optimism for the
coming .year, especially for the first
ment
six
.
peaks in their sales volume,
•
life
insurance companies will play an increasingly sig¬
nificant role of promoting the nation's economic growth
months, and
management
our
of
contacts with top
our
-leading
•
com-
panies
reveals an almost universal
prediction of good volume of busi-
*
and
investment operations. Last year
profits & spite of keew
companies invested or * reinvested $19 ^competition. Moreover, there are few
times when statistics arid the fore=*~
billion, $iy4 billion over 1954. An even greater increase
through
life
broadening
ness
insurance
■T
is
indicated
for
1956,
with
the
major
portion
of
casting indices
in¬
vested funds
-
going into mortgages and corporate bonds.An estimated weekly flow of $385 million, from life
insurance companies into the money market is bound
to have an important
impact on the economy.
At the end
surance
of
1955, total assets of America's life in¬
companies
approached the $91 billion mark;'
with corporate bonds accounting for 40% of the
total,
and mortgages 32%.
This compares with 22.5%
and
14.8%, respectively, only 10 years ago.- In the same
period, holdings of U. S. Government securities declined
from 46% to 10%
of total invested assets.
The unprece¬
dented
and
the
housing activity, tremendous industrial expansion
development of thousands of new products during
past
few
have been major factors in this
changing pattern of insurance company investments. No
important shift in this trend is on the immediate horizon.
The
average
„
net
rate
of
insurance
investment
a
earn¬
low of 2.88% in
as
at
are so
present.
uniformly *fav\
1
-
:
.
g
More
specifically^ as to our lpcal
C. Kenneth^Fuller
situation, the textile industry, ex- '
cept for woolens, has enjoyed increased volume and
moderate profits, although competition has. been keen
and profit margins low. They antieipate a good volume
of business for the next several months, however, and
hope for somewhat better margins. The closely allied
needle trades are active and optimistic for 1956. .-/
The machine tool industry, which is now a very im¬
portant factor in the area, had a year of high volume and
.
,
good profits, with a backlog of orders ranging anywhere
from six months to
The
years
ings has been climbing slowly, from
^
orable
■
is
some
and
over
a
year.
construction
industry has been active, but there
indication of a slowing down in both residential
other building over the past several months, with
lower
backlog of
new
a
volume than existed six months
Continued
on
page
74
.
Number 5460
Volume 183
The Commercial and Financial Chronicle
...
(333)
liam St., New York
NAIG Elects R. E. Clark Debentures of Banks
agent
for
assistance
And
For
Joseph E. Welch
Cooperatives
President of Calvin Bullock, Ltd.,
has been elected Chair¬
New York,
of the Executive and Admin¬
man
istrative
Committees
Association
tional
the
of
Companies, according to
ciation announcement.
13
Banks
The Asso¬
Welch, Executive
The
for
Cooperatives
are
making arrangements for a
public issue of $40,000,000 7-month
consolidated
Asso¬ bentures,
an
also reported that Joseph
ciation
E.
Na¬
Investment
of
The
Service
collateral
the
of
trust
Cooperative
the
Farm
be the third
de¬
Bank
Credit
ministration announced.
Ad¬
This will
issue of the consoli¬
Vice-Presi¬
dated debentures.
Proceeds will
dent
of
Wellington Fund, Inc.,
be used primarily to redeem $40,Philadelphia, has
been
elected
000,000 of 1.90% consolidated de¬
Chairman^ of the - Association's
bentures maturing Feb. 1, 1956,
Public Information Committee.
which were issued Feb. 1, 1955.
The debentures will be
at
nounced
The
offered
Interest rate will be
par.
on
new
an¬
olr about
issue
Jan. 24. /
will be offered
through John T. Knox, 130 Wil¬
Robert
Mr.
Clark
E.
Calvin
with
is
and
dend
Joseph
has
Clark
nationwide
Banks
:
■
for
group
Cooperatives
Municipal Bond Women
Educational Meeting
The
Municipal
make loans to farmers' marketing,
purchasing, and business coopera¬
tives. They are incorporated un¬
Club
der the
next educational
Farm
Credit Act of
1933
of
and operate under the supervision
the Farm Credit Administra¬
19.
tion.
motion
cured
the
are
se¬
joint and several obligations
the
of
debenture^
13
banks.
They are not
obligations and are
guaranteed by the Govern¬
Women's
OGDEN,
Securities
gaging
New
York
will hold
meeting
on
Street.
Jan.
The meeting will feature two
Butler,
"Sports Island."
of
Puerto
Opens
question and
ROCHESTER, N. Y.—Harold W.
Lara
is
engaging
in
securities
a
Officers
Clifford
Lester
Guests
are
and
answer
an
conduct
Orbit Securities Corp. has been
in¬ formed
the
period.
invited to the meet¬
with
in
and
C. A.
business from offices at 241 San-
1703, 15 Broad Street, New York,
and
N.
Treasurer.
Alfred A.. Adrian, Secretaryt* - **
He
graduate of Williams College, Mr.
Clark
was
born
in
Springfield,
resident of Bronx-
a
ville, N. Y.
Welch
Mr.
Executive
is
Vice-
President of Wellington Company
and Wellington Fund. He
attended
the
University
and
has been associated with
Pennsylvania
of
-
the
Wellington Fund since 1937.
13
prior to that he
years
sociated
with
For
as¬
was
Stock
York
New
Exchange firms and with the Fed¬
eral Reserve Bank of
Philadelphia.
Philadelphia, he re¬
of
native
A
sides in Glenside, Pa.
■
] The National Association of In¬
vestment
Companies
represents
J.25
open-end
investment com¬
panies and 27 closed-end invest¬
ment
;
total
assets
lion
companies
and
of
with
combined
than
more
than
more
$9
bil¬
million
two
shareholder accounts.
New Firm Name How
Boyd, WtHerscst
Ohio —Boyd
CLEVELAND,
Company,
located
Boyd,
Jan.
the
of
name
&
Watterson
Commerce
change
partnership
announce
&
counselors,
Union
1700
at
Building,
the
investment
a
in
to
TURN
effective
Co.
1956. Partners are Robert
Watterson.
The firm has been engaged in the
practice
of
investment counsel
and estate management in Cleve¬
land since 1928.
UP
more
1,
HEAT...
THE
the way
is on
gas
M. Boyd and David G.
Mr.
-
ciated
20
the
the
with
been
been
for
partner
a
billion
cubic feet of natural
That's what Tennessee Gas
gas!
pipes daily to Eastern homes
asso¬
organization
and has
years
since
has
Watterson
1.7
and industries. And still
To meet that
1937. He has been active in
analyst movement,
having served as President of th«
security
Cleveland
as a
thousand mite
area
to our
more.
steadily increasing demand,
we
recently completed
loop linking the New York City
expanding 9000 mile system.
*
%>ciety of Security An¬
alysts and
a
they call for
director
thjp
National
of 'Financial
tion
ties.
of
Vice-President arid
He is
Reserve
a
Federa¬
Analyst
assure
Socie¬
graduate of Western
University
Huge underground storage fields close to consuming markets
further
the
of
and
-In the
And
dependable supply during peak winter demand.
gas-producing Southwest
new
reserves
a reserve
.j
of 12 trillion cubic feetf^
Industry joins the homeowner in the swing to
gas.
More and more processes that
require precise, easily controlled heat find the
answer in this superior fuel.
natural
added each year.
Harvard Graduate School of Busi¬
More heat, America? Turn
Administration.
ness
Mid Continent Sees.
ST.
in
a
fices
and
X.
Corporation is engaging
securities
at
3520
915
Olive
business
Hampton
Street.
Gibbons and
len,
Corp.
LOUIS, Mo.—Mid Continent
Securities
Jr.
are
from
associated
M.
with
firm.
TE
E SSEE
GAS
of¬
Avenue
Thomas
William
it up. Tennessee Gas can deliver.
TRANSMISSION
COMPANY
F.
Gal-
AMERICA'S
LEADING
TRANSPORTER
OF NATURAL GAS
the
HOUSTON,TEXAS
Wall
Goldschmidt, President;
formerly held the Association post
now
occupied by Mr. Welch. A
Mass. and is
120
Alexander,, Vice-Prfesident;
director
a
at
securities busineses. Officers
a
are
ing, yvhich will be held in Rpom Jack
Y., at 5:30.p.m.
offices
Street, New York City to engage
Divi¬
of Carriers and General Corp.
W.
Rose,
Secretary-Treasurer.
1929
of
en¬
Twenty-fourth
are
President;
ford
Street.
is
business
Form Orbit Securities
A representative
Rico, will give
troductory talk
H. W. Lara
securities
industry and life in Puerto Rico,
entitled "Building With Rain" and
•
a
America
Ogden
Vice-President; and Max T. Corn-
pictures showing phases of well,
Government
/
in
Mid
—
of
its
not
ment.
Utah
Inc.
from offices at 359
of
The
Bond
Mid America Sees, of Ogden
Welch
E.
since
Bullock
Shares, Inc.
a
associated
been
Vice-President
a
of
City, the fiscal
banks, with the
of security dealers.
To Be Offered
Executive Vice-
Robert E. Clark,
the
73
>
74
The Commercial and Financial Chronicle
(334)
Continued
from
itself
72
page
broke through the "frequency barrier" with its
high-frequency transistor. These tiny components
will certainly have a very big effect for
good in the
future of the industry.
The year saw the extended usage of plater
circuitry
Nevertheless, the rapid population growth of the
and plans for capital expansion indi¬
long range outlook.
Representatives of the rubber industry are operating
at a high volume with good profits and anticipate further
improvement over the next six months. There is some
indication that inventory is rising, however, in spite of
surrounding
cate
area
favorable
a
the increased sales.
.
*
in our area is tied
closely with textiles, experienced a good year and pre¬
dicts substantial improvement in '56.
Retailers and distributors report an excellent year,
with volume 2 to 7% above 1954. As in most cases, how¬
ever, it has cost more to acquire the business so that
profits have not increased at the same degree as volume
The
chemical
of sales.
which
industry,
with good
1956 is promising,
for
The outlook
volume of sales, except
perhaps for automobiles,
With such conditions prevailing in industry and trade,
the banks enjoyed a good year.
Demand deposits in¬
creased only nominally, although velocity, reflected in
clearings, increased steadily throughout the year. Oper¬
ating profits 4 were higher, resulting from both the
sharply increased volume of' loans, including consumer
credit, and higher interest rates.
In summary, the outlook is favorable to the continua¬
tion of a high volume of business, high employment,
increased wages, and good retail trade.
It is doubtful
that demand deposits will increase greatly, although
there is some evidence that the rate of savings may be
v
,
increased somewhat
over
favorable factors in the local and
forecasts of increases
in gross national product to $405-$410 billion, there are
weak spots which can and ultimately will cause a level¬
ing off in the boom somewhere along the way. The most
important of these factors are the farm price situation—
ihe possible decline in residential construction—the over¬
sold durable consumer goods market (especially auto¬
mobiles) arising primarily from the high pressure selling
tactics made possible through television, radio, and too
easy financing—the unsettled political outlook—and last
but not least the tight monetary policy of the Federal
Reserve Bank. These add up to a rather heavy list,
although strangely enough, none of them, except pos¬
sibly the farm sitiiatipn; are reflected importantly iri
the statistics.
least
6
million
black
the
new
mer
of 1957.
;
'
what.
•
,
.
.
railroad
flat
cars)
and
fishyback
(the loading of truck-trailers aboard
steamships) jus%beginning to come
into their
is
own
.
.
hauf sales totaled
million
Roy Fruehauf
to
And for 1957
half
of
billion
a
do
dollars.
350
In 1955 Frue¬
approximately 235
In
million
look forward to
we
the road ahead
.
bright and shining.
1956
we
dollars
expect
in
sales.
annual sales volume
an
dollars.
surpassed in 1956.
GALVIN
Fifty-five
was
great de¬
The expansion of
the construc-
and
tion of
new ones continue unabated.
Consumer requirements for nonferrous metals at home
and abroad are
increasing at an accelerated rate. This
great demand growth sounds another optimistic note for
the refractories
industry, through the present year.
Predictions for chemicals, in
general, are that
should
be
at
least
good
as
1955 with
as
1956
the likelihood
that this year may be even better. The forecast of
greater
demands for Portland cement, glass and numerous other
essentials
add
to
the
bright
outlook
for
refractories.
Large
expenditures are scheduled for urgently needed
new plants by utilities.
Emergency plans involve an out¬
lay of billions for defense.
The manufacture of refractories has kept pace with the
industrial progress in scientific
develop¬
tremendous
ments. Rapid
and in
evolutionary changes in conventional proc¬
many cases, the employment of entirely new
have created the need for types and classes of
previously had not been commercially
available.
come
record
a
mills
breaking sales
Research
of the utmost
In
the
and
close
carried
set
in
year
somewhat.
■
For the whole electronics
industry
1955 was a boom
year, and electron¬
ics is a good barometer of the econ¬
in general.
omy
tions
are
in
all
most
capital
With
to
18%. Passenger miles flown by 'Northeast amounted
estimated 116,000,000, .up 11% over 1954.
These improvements in our
everyday, business per¬
an
mitted the reduction in Federal
east
-
by $260,000,
ress
was
made
a
on
-
.
proceeding.
Public
Examiner
in
1
Thomas
of Air
Operations
recommended that Northeast be
authorized
to operate to Miami
by way of Philadelphia/ Baltimore,
Washington, Jacksonville apd Tampa. "
TV-
continued
evolutionary
year
the
and
growth
more
rainbow
its
None of
most
significant event in 1955 for Northeast
was the placement of the
largest hew Aircraft order in
ihe history of the
company. Northeast ordered 10 Doug¬
las DC-6B
airplanes at
$14,000,000.
media.
Motorola
First of these
new
in
present
routes
tic
Florida
addition
Paul v* Galvin
has
to
the
good sales record made by elec¬
year was also distinguished
by a
number of technological advances in the field.
Progress was made involving transistors, and Motorola
in
1955,
the
us
can
see
are
two
for service
are
and
cities
should
routes be authorized.
extension
of
Northeast conducted
tentative negotiations for the
purchase of jet airplanes in January of 1955, and liaison
between Douglas and Boeing,
plants on the West Coast
Northeast
and
was
continued through the year.
The growing volume of air traffic,
great as it is, does
not offer immediate hope-for
reducing the cost of air
travel, mainly because mounting
in
expense
American economy when compared
to 1940 prices.
,
^
FREDERICK V. GEIER
The
track
machine
tool
industry enters 1956 with
clear
a
ahead.
Just when the overall
economy experienced the 195455 soft spot, machine tool builders were
faced with the
the
economic
road
One
operating
force
is
on
our
pulling
our
to
extensive
design
new
in
machine
models
new
Along with this
changeover to
machines
stimulate
advance
matic
and
the
tool
new
effort
buying.
methods
time
productivity and auto¬
Thus, the industry
the
transition
business with
new
to
peace¬
product that
definitely challenges replacement of
economy
when businessmen should watch
in
operation.
completed
in
On the opposite force there are the bad farm
prob¬
lems, the high tax structure, the uncertainty of political
elections, the high interest rates, and many others.
year
the
came
war
output to ordinary
peace-time volume.
with too
economy
peak
emergency
unveiled at the Machine Tool Show
September revealed a decided
are
a
providing
air service has made it inadvisable. But at
present rates,
air travel is one of the lowest cost commodities
in the
many
tools
Frederick V. Geier
of
in
the
use
obsolescent
machine
today.
Coinciding with the current
of almost every segment
I think this is
Northeast's
last
of our economy.
Inven¬
high, credits are highest in history, deficits in
local, state and Federal Governments, the trend toward
higher wages, all are pulling in the direction of inflation.
tories
company's
.V
The
upward and the other force tendency is downward. On
the upward force there are the present artificial posi¬
tions
delivery in
the
over
New
England, New York City and
Montreal, and for inaugurating service to Middle Atlan¬
GASSER
down
forces
opposite directions.
the
selling a few sets every day on demand and is at¬
tempting to boost industry color sales by encouraging
color programming as one sponsor of the
daily, hourlong dramatic colorcast "Matinee."
In
total cost, with spare parts, of
V
1
I
aircraft is scheduled for
January, 1957. They
certainty.
There
been
tronics
a
1
The general impression is that 1956 will
be as good or a little better than 1955.
Generally speak¬
ing, I agree with that, subject to a few "ifs."
gradual
through
progress is ahead for
-
.
"Another
.
radios.
Color
L.
always-difficult transition from
W.
5
proceeding were held before
Wrenn during'the summer, and
December counsel for the Bureau
of the CAB
.
W.
much
*
-
hearings in the
Chairman, Gary National Bank, Gary, Ind.
During the year, between 7,500,000
and 8,000,000 TV sets were sold
along
with more than 13,000,000 home and
car
subsidy paid to North¬
14% reduction from last year. Prog¬
Northeast's application to extend its
routes to Middle Atlantic and Florida cities. The
applica¬
tion is included in the CAB's New York-Florida route
areas
the factory to the
farm, from
military to public welfare and
education.
over
up
an
from
the
operation.* Pas¬
numbering about
1954, and the
history that pas¬
11% increase
an
the half-million mark.
Ton miles of air express carried
by Northeast in 1955
were
10% ahead of the previous year, and freight was
appreciable backlog of orders and taking into
consideration the broad scope of optimistic predictions,
it is reasonable to look forward to a banner year in the
refractories industry.
Electronic applica¬
involved
now
ceased
iV"*'
exceeded
research facilities.
and
Early
\
'
President, The Cincinnati Milling Machine Co.
recent years, Harbison-Walker has inexpenditure at an accelerated rate by
many millions for the construction of new plants, mod¬
ernization, mineral resource developments and additional
Motorola
pated.
airline's
all-time, high,
an
Northeast's: 22-year
carried
quality control have be¬
importance.
year
another good year in 1956 is antici¬
in 1955 the company set itself a target
of $225 million in sales and it now
appears that final
figures will show this to be exceeded
for
v'i-.
refractories which
President, Motorola Inc.
Nineteen
established
_
esses
V.
current
'
processes
PAUL
the
mand for steel, the production record
of the past year is expected to be
Earl A. Garber
v
^
_As indicated by^therTarge backlog
and
the
^ast:ea^regl#^ed^^
aluminum,
copper and others as well as
Portland cement, glass, steam power
generation and numerous others of
orders
1955
\ Northeast AirUnegMji^the
in almost every phase of the
sengers
nickel,
of
in
over
brightest future ahead for the; air /transportation indus¬
second
nonferrous metals, such as
•
year.
try in the coming months;
phase of the manufacture of almost everything
to our everyday needs.
While iron and steel,
major importance.
.
travel
19%
580,600. This marked
These include all the
new
able equipment and airp«rt*:faeiiitiesr'. lut. except for
these two presentobstacles?;^^®thjng^bdt;;the|
possibility of economically using substi¬
tutes, refractories are used either directly or otherwise
President, Fruehauf Trailer Company
■
:-
GARBER
fied industries.
-
increased by}
George E. Gardner
previous year;.
It is unlikely that a) similar yrate
-,!.v
^
of growth can be continued iw
1956;: with present avail¬
the
-
of 1956 will be the greatest year in
motor transport's history — and, in¬
cidentally, the greatest year in Frue¬
hauf Trailer Company's 42 years of
truck-trailer building.
With Con¬
gress about to adopt a tremendous
national highway building program
.with trucking assuming an
even
greater
importance
in
the
American economy, with piggyback
(the loading of truck-trailers aboard
Air
about
products should
along with allied industries including
by-product coke, represent the larg¬
refractories, a considerable portion of Harbison-Walker
products are used in widely diversi¬
new
shortage of flying equipment and
inadequate airport facilities dit some*;-:
places will limit air travel growth tq.?>
a degree.
: ^00,:/v:;
;
est consumers of
created
passengers over many of- the na- '
tion's
heaviest traveled -: routes.V A-,-£.
President and General Manager,
some
attention
new
to
Harbison-Walker Refractories Company
in
with
will
sengers
common
showered
continue to growf- but ,
airline services will be available
y';
new
All. in all, 1956, should be a good year for the electranics industry.
What with the interest in communi¬
cations generated by the national political
conventions,
Without
be
industry's efforts in the
Traffic
.
EARL A.
will
by the nation's airlines in 1956, as a result
Aeronautics Board decisions in three
Service to the passenger will mark
*
our
i
Civil
sengers.
significantly.
■
' " "
are expected to decline some¬
public interest in and acceptance of
be at an all-time high.
recent
the
Car radio and home radio should sell well in 1956 and
microwave relay to grew
travelers
this is certain to result in increased
airline service to the benefit of
pas¬
In the product
.
GARDNER
route cases. ■> The decisions have
airline competition over most of the
nation's heaviest traveled routes, and
about parallel the sales rectrd of '55.
Commercial and industrial tw«-way radio should move
ahead moderately in the year to come and we
expect
_
The coming year
'56.
E.
major
sold—
'
*
''
"
gradual lowering of color TV prices
a
FRUEIIAUF
ROY
of
during this period of increased production and engineer¬
ing advances.
In 1958 prices might be in the $695-$895
bracket; $595-$795 in the 1957 product year and the color
TV price could reach $518 sometime in 1958.
-
v
sets
Air
and services
orderly growth during
summer
C
There should be
more
'
television
•
,
GEORGE
year of summer '56 to summer '57 we may see sales of
about 300,000 sets, with the one million per year rate of
sales being reached in the year beginning with the sum¬
,
playroom.
white
to
closely.' In other words, even though the
highly favorable, I doubt that the millennium
bas arrived or that it is time to turn the storm cellar
a
unforeseen condition
some
President, Northeast Airlines
year, and 50,000 sets should be sold in the prod¬
uct year of sum
outlook is
into
and
somewhat fewer than this year.
Color TV should continue its
be, therefore, that we are approaching a period
when there will be a cyclical change in the economic
weather.
At such times it behooves us all to operate
with a little more caution and watch our weather charts
little
gradual inflation unless
very
suddenly arises.
applications, and many new devices appeared
fabricating processes.
As for next year, there should be further expansion
of research, development and
manufacturing facilities
in the electronics industry.
This construction should
contribute substantially to the total economy.
On specific electronic products,
1956 should see at
It may
a
In
for the mechanization of
Military electronic sales
In spite of all these
very closely^ and bankers should screen their
very carefully.
general, I look for the economy to slightly favor
loans very,
in various
the next six months.
the national economy and the bold
Thursday, January 19, 1956
;
.
credits
new
ago.
.
wave
of plant expansion in the automotive
and related fields, the impact of the new
design machine
timely and effective in lifting orders to higher
levels.
Several surveys of capital expenditure expec¬
tations for 1956 pointed to more active plant expansion
programs.
In fact, the sharply-increased machine tool
tools
was
orders
booked
in
the
final
months
of
1955
Continued
on
show
page
the
76
Number 5460V.The Commercial and Financial Chronicle
Volume 183
r'W
j
down
Steel Demand Seen Unaffected in
Holbrook Director of
-
(335)
his
Event trfAutomobile Cutback
First Boston Corp.
.
election
The
!
of Luther
G.
Auto
' brook to the board of directors of
-.
:
f"
*
/.
«'
100
Broadway,
New York
City has been
announced
George
What's
D.
have
Woods, Chairof
man
t h
-Board.
-
■
;
Mellon
i
I
ceeds
I
car
nage.
f
production
■
Holbrook
G.
auto
in
of
(2)
their
some of them
divert
to
inven¬
are
tonnages
to
There
for
this
excitement
from Detroit is the
news
that
the
mill
backlogs
are
run¬
will
be
The
still the rule—not
are
deals
uncertain
steel
labor
out¬
look
money
in
the
negotiations
bank
until
eral
(1) the
'using this
business
side,
rosy
his
right
outlook
no
mind
the
still
gen-
on
the
steel consumer in
is going to turn
continue
for
available ingots is terrific.
and
structurals
items.
are
the
in
prices
strong
are
some consumers for
are
as
although conversion
being pressed as ur¬
before.
on the industry's new capacity of 128.4 million ingot tons,
steel
operations
scheduled
at
this
98.5%
:•
Plates
hottest
The ten-day shutdown of
FRANCISCO, Calif.—
shellev
Robprts
fr
*
First
urancn omce
Board
I
Bank
as
I
of Billy Boyle.
Boston
and
Federal
deputy
'lis S
Reserve
Holbrook
lit*®'''
director of General Rein-
a
i surance
f
of the
Cleveland. Mr.
of
is also
•
director
a
Chairman
■
Corporation.
Phila. Sees. Ass'n
j
Ilii
I
IIV/vl Iv'VVVi
PHILADELPHIA, Pa.—Francis
M. Brooke, Jr., partner of Brooke
&
Mm
111
Elects New Officers
..
'H-.
m
Co., has been elected President
I of the Philadelphia Securities As¬
sociation to
for
serve
ensuing
Mr.
the
•
year.
Brooke
I succeeds Rob-
t E. Daf-
,| e r
v
.-•> *
fron, Jr., part-
; ner
of
f:
I
I
.whose
C
&
son
annual
The
meet-
; was held
in fQII commercial production by
Solvents
Corporation. This
the result of years
A-'
I o-^ ing and elecI ' ' ;t i o n o f. t. h e
[ ■
Association.
.
of broadly useful chemicals
are now
o.,
term
expired,-
%
NITROPARAFFINS—a group
Harri-
I
to create
entirely
new
-
•/•••
of study and.investigation, promises
ehemjc||A«z°ns»
new
^r
Fri-
Commercial
chemical family,
by
■VV
c u rre n t
symposium
revealed
U'
Thayer, Baker & Co., VicePresident;
Spencer
D.
Wright,
III, partner of Wright, Wood &
-Co.,
Treasurer,-;,:and
Orpin" V.;
.
of
•
,-c
Superior emulsifier for cosmetics -;
•
.
•
Ingredient for longer-lasting, shinier
.
•
floor waxes,
Boop,-partner cf Echmidt,
>
.
,•
.
Poole,
Roberts-& Parke, Secretary.
1
Thb following were elected.-to
the Beard
V for;
.;
cf
Governors
three<*<years:-
to
•
-
R.:';
V/enzel of Hornblower & Weeks;";
DeLong
Additive for brighter,
faster dyes
(for synthetic fibers.
Monahan, Financial
•./•"j Vice-President of the Provident
Mutual Life Insurance Company;
i
Plasticizers that resist alkali corrosion
•
serve.7
Albert■ ; A.
H.
•
Fuels
needing no oxygen for combustion
"
Walter. W.
■*
' Walsten
&
Buckley,
partner; of;
Co.f-and Leighton
H.
-v
Essential
;
-r", Mclllvaine, Manager of the Mu-
•
:
•
'
nicipal' Department
of
reaction-stopper in producing
synthetic rubber
,
Goldman,
'
Sachs &
'
Co.
Experienced technical assistance is available
.to show you
Vickers Bros. Admit
Chrisiy & Hmmnnn
;
WillfSm
J. Christy and Conrad
r.(V. N. No^manm have been admitted as
V partner's of Vickers Brothers, 52
•. Wall
Street; New York City. Mr.
,
v
.
r
?
«
how the nitroparaffins and
their versatile derivatives
was sales manager of the firm and Mv. Normann
."improve
v
your
can
be used to
present products or
to create new products. For information
"
or
l"
samples, call
or
write
our
: --O
local sales office.
Christy formerly
Sales Offices in
formerly was syndicate manager
of McDowell Diamond & Co. of
Principal Cities
Frovider.ce, R. I.
Form NY & American Sees.
'
v
New York
ties
-
&
American
Company
has
•
with
offices
New
York
at
90
'
.securities
'.Lamb
is
a
Now R.
SALT
•
name
cf
City
to
business.
Securi-
formed
Street,
engage in a
been
Wall
-
J.
Merrill/-
principal of the firm.
Reynolds & Co.
CITY—The
LAKE
'*
Reynolds is
firm.
a
principal of the
"
--
PRODUCT
IMPROVEMENT
Co.,
-Judge Euilding, has been changed
to R. Reynolds & Company. Ruth
L.
FOR
firm
Reynolds-Raynolds
petrochemicals
EXECUTIVE
•
Commercial
OFFICES:
260
Solvents
MADISON
Corporation
AVENUE.
NEW
YORK
•
hav*
J 1
in the
Russ Building under the direction
was necessitated
by this appointment by the Federal Reserve
k
L
Co
Q
°Penea a
board
s
are
capacity,
Shelley Roberts Branch
SAN
Vice-President
the
week
of
compared with 97% last week.
vm*;
Buskirk,
from
being
plates
not
organization, whose resig¬
nation
demand.
still
Based
share of
a
the
Hot arid
sheets,
gently
are out of the way.
managers
compounded
labor
product
With
also
Premium
Allocations
the exception.
failure
cold-rolled sheets, bars, and wire
and
Despite the increase in steel capacity, the competition among mill
mid-year.-
motor
hysterical plate market.
paid by
1 their
significant
no
large plate rolling mill due to
ning to four months and incoming
business is matching production.
before
that
is
are
the
in
easing'in the steel market picture
.
companies
bruising
are
users
finding that Detroit is letting loose
of very little. V.VaVvv
terms of ton-
..
Reason
Luther
Arthur/
of that
I
in
and
B. Van
.
I
cancellations
some
have been less than the cutbacks
Sons, Pittsburgh,
suc-
:
been
apply on deliveries scheduled
for March. But these cancellations
sistant VicePresident of T.
.
happening is this: there
—to
Mr.
J
rebuild
to
and the certainty of a steel
price increase after the labor setknuckles in vain as they rush the' tlement—with or without a strike
mills to demand tonnages the auto —also will affect the buying policompanies don't want.
They're cies of consumers; Steel will be
steel
steel orders by some car producers
e
Holbrook, As-
j
arranging
national metalworking weekly.
by
.
to
tories, and
on
then, according to "The Iron Age,"
'
'
breather
are
cline
is
anything; more than a non-auto subsidiaries, such as ap¬
flash-in-the-pan, it's not likely to pliances.
show up in steel until March—if.
Net result is that other hopeful
Corporation,
!
cutbacks
Even if the de¬
demand for steel.
-Boston
i
production
having little immediate effect
First
The
Overlooked
fact
Hol-
add
a
a
to
stockpile,
over
'
opportunity
an
75
biochemical^
16,'
NEW
YORK*
76
The Commercial and Financial Chronicle y.
(336)
Continued
from
Our company, along with the department store indus-
Machine
costs
of
will
the
carry
production
of
As
result of
a
Current
off
initially abnormal costs.
the
demand
for
The
just
year
closed
has
the
been
the
banks
in
were
in
level
Our
world,
power
In
demand
throughout
the
It was an excellent year for
banking industry.
From the standpoint of banking,
the greatest single force making for
1955
the
was
vate debt.
business
general
record
before.
The
was
' greater
/
than
-
stability
The
effect
net
the
banks
of
retard
In
on
Loring L. Gelbach
tion
construction
should
be
more
than
ment, construction (other than residential), and defense.
A shift to a less restrictive or neutral credit
policy by
the monetary authorities is anticipated later in the year.
What effect it may have on the banking system will
depend very largely on the extent of the change in
policy.
It is anticipated that inventory changes will
limit the growth in business in 1956 to
be
tiply
a
vehicles
in
slightly
in
of
excess
1955
banking
restrictive
outlook
for
1956
is
Competition
continue
will
to
be
in
customers
A-.
V
economy.
and
advise
the
for
crease
over
A
general
welfare
of
is
of
one
the
A.
in
all
at
high point
employees are on a
are
a
and
full
week.
Companies with im¬
proved earnings have been declaring
increased dividends. Old age benefits
have increased both in numbers of
people
benefited
and
amount
of
benefits under the
more
liberal
so-
cial security laws. All these factors,
work together to keep retail sales at
believe, will
high levels. If there is
sa
a
slackening off
1955's
market for
department stores.
,
record
the
.
,
'
,'::**•■:/
.
.
.-'v'Vv"'
••'.
Under
Limited
diesel
and
The
cut
Super.;; Continental,
over
hours off
16
the
Vaneouver.^;?.^^^
•;
rapidly expanding development:of:Canadian
sources
is reflected in the
the opening
to
the
power,
Scotian
rail trip from Halifax to
contribution of
of base metal
areas.
new
re¬
CNR lines
.The Kitimat line,
,
opened last January, is now in operation for both pas¬
sengers and freight.,. During 1955, a rail line from Hillsport to Manitouwadge, Ontario* was completed and con-.
living that is first
continue
clearly visible on the Montreal skyline and; general con-;,
tracting work will begin early iti the new yean;; A start I
to
of
Chicago
Trust'( Company
traditionally,
Title
has
pointed
the
out -that,
construction
real estate
cycle has been
andw this
is
present
certainly
a
true
are
•
'
for
and
long
of
one,
"I
the
upswing which has continued
been
on the Terminal Centre Building :being
railway's' property -near' the hotel..' These
further steps towards reahzatiou
of^
the development - of the terminal area.*4'*U^
erected
and
'
made
the
on
j'
3 In an effort to strengthem'its competitive position- in
the transportation of motor ..vehicles, the Canadian National designed and ordered 25 new car tjansporters,
special box
Delivery is expected ih 1956.
credit,
the
wages
almost
from
it.
travel.
the
'
the
rising department store sales
improved profits.
With
new
work
1956
a
West and east from Montreal, new tr^ins and sched¬
ules brought added comfort and speed to< Canadian yail
and better family home
a new
Officials
one
Employment is at the highest level
history of our country, aver¬
the
meet
support the home construction and real estate market.
GIMBEL
in the
in
if
future
In recent months various
agencies
have taken action to restrict
already opened and
works, we expect our
company to participate in the antici¬
pated improvement for 1956.
oroaden
such gains
the
Ocean
to
effect of which has been to limit
supply
residential
of
funds
available
construction
for
financing.
seriously affected real
activity in the Chicago area
to : date,
partly because financing
practices
have
been
considerably
This
has
.
not
estate
other
fcales
caution
long-term factors that will
the
suburban stores
.
throw
to
few
years, vand
will be required iny" Donald Gordon
the .company is to
•
' :
' s'
sound financial position in an expanding
past
Canadian economy. The events of 1955 are both a meas¬
ure of the challenge and: evidence of current efforts to
and
.
and
we
growth
the
win and hold
GOODRICH
expressed in the desire for
last year.
Gimbel
creates
more
in
headline in the New
The steady rise in our standard of
less
tinued
A.
•-
in
President, Chicago Title & Trust Company, Chicago, IlL
will be the largest in the history of
and profits should show a substantial in¬
age
ciency
•
Most economic indicators portend a favorable outlook
for the coming year both in con¬
Bruce
effort
anyone
PAUL W.
1955
company
•
has /,
made notable gains in operating effi¬
mul-;.
since 1942.
V;
BRUCE
Sales
that
human/;and| materials
The Canadian National system
.
President, Gimbel Brothers, Inc.
our
tion of both its
wind, but I sincerely feel that those who are bearish
on the
coming year and the years ahead will find them¬
selves, as their counterparts in our past history have
found themselves, profitless and disappointed because
of a lack of vision and of faith.
• yy1"
'
1956.
and
a
•
moving ahead, on/;
broad front towards better Utiliza- "
resources.
y,y
not
With restrictions eased,
position to be of even greater
a
to
economy.
Ally of the West,'"
themselves
would
other.#!
in
as
competition;?; the tCanadian;
highly
a
in unabated fashion
stability..
I
1955,
years,
a
world with the work
a
York "Times" of last Sunday
proclaimed, "Is the Force
of Freedom." Free men,
singly and together, seek to im¬
prove
of
National has been
are
-Recent increases in the average rate of earnings received
cn loans and investments indicates a further rise in net
the banks
"In
Domestically, sales are
high. Internationally, sales are
stable, and only exchange difficulties, scattered, and far
from general, have kept them from
being even larger
than they are. .
< : i,:
•
prospects
in
volutpe
railways, was
stiffer
Jeeps, Jeep trucks, station
were
...
the
the
■
favorable.
policy should improve the rate of
growth of bank deposits.
The continuing high level
cf business activity is expected to maintain bank loans
at an overall level at least equal to the average for 1955.
service
.
in
by
by a sharpening of y
competition from yrucky; airplane^;bus and automobile. 4'; To meet, this f:
gain of 2 to 3%
rate.
credit
earnings of the banks in
accompanied
the world's largest manufacturers of
the world's
and
up
Personal incomes and industrial production
will continue keen throughout the year.
The
These
"The Unseen
offset by increases in expenditures for plant and equip¬
will
It is this
done
recent
sold than during 1954.
oversimplified statement may not.
an
increase
The
business
'
rolling adjustments.
1955.
in
in the nation's business in 1955. The
transportation industry as ai whole, ;both in Canada and
satisfactory year."
the outlook for general business.
residential
The Canadian National system shared, to a degree,
.
four-wheel drive vehicles face 1956 confident of
the
coming year is for further
Any decline in automobile produc¬
above
overdue.
be out of order.
The business outlook for the
and
x
■f,
the general upsurge
one
job that's ahead,
s
The outlook for banking activities in 1956 will depend
largely
express
heavy expenditures to make improvements long
As to the future,
;
Outlook for 1956
J
; -*»'
Canadian National * Railway; System;: ■
so completely diffused among so many.
In J
country, the Federal, State, and local governments
will show that last year more
restrictions
the
to
H'i-.
J?
■
Chairman and President;
social sense; the dollars produced are f inding their
a
wagons and sedan deliveries
•
rapid growth in loans,
restrict further expansion of bank deposits and encour¬
age a rise in interest rates.
was
Girard
segment of the various Kaiser-managed com¬
panies, the year 1.955, for the Kaiser Motors Corporation,
period of rapid economic growth.
cn
A.
.
necessary and
''
throughout; t h i
S.
-
,
nomic
<
DONALD! GORDOlSI^i;
changing world, and in
increasing, buying
has been expressing and will continue to
propose
ever
-policy
of
credit
restraint
adopted by the monetary authorities
early in 1955 was the principal re¬
straining influence making for eco¬
<
^4/
greatly
;
When the buyer or lender on
business
or
protection in virtually; every part of the country..
a year
perity been
this
in
y./ '. p'.
•
a
.'V
either resi¬
property obtains , a title insurance ;
policy, he is assured that the title is good: fin the event f
of any claim or attack against the title, .as .guaranteed,
whether the claim is valid of not, .-Chicago Title and <
Trust Company defends the policy holder, pays all legal '
costs of this defense, and, if a loss is suffered, reimburses
the policy holder up to the full value of the policy.
Such title insurance is today the accepted form of title
wayj into mote pockets faster than ever before in the
we had as sharp an eco¬
a peaceful period, and never has a
pros¬
The volume of credit out¬
-
is
-
for
world's history. Never. have
■
standing
gross
businesses in the Midwest
nomic rise in
in pri¬
growth
$400 billion
production.
our
broad economy and its promise
experience of Chicago Title and Trust Company 1
108 years of business
dential
countries
a
dynamic,
policies provide the owner or mortgage, lender - on real
estate with protection against claims that may arise to"
population
already is
our
economy
its
affect the title.
highways, the
itself.
creasing
in
other
•••? +
jobs-mean
and
history during which this pompany and- its predecessor
companies have been providing title service to buyers
and sellers of real estate in Illinois. >Its title guarantee1
is
country and much of the Western
our
the
increase
in
Ours
prosperous
period.
an
and
better
shifting character of
1
.
this
and
more
running around
most
in-
overlooked
***
people and people"
houses—in the city .and in the suburbs." We are
The
'
year
of
be
vessels of the world.
ocean
jobs
means
the future.
industrial
expansion taking place
everywhere, the tremendous increas¬
ing population at home, and the
in the history of our country.
.
With industrial production, construction, personal in¬
comes, employment and retail sales at record highs, the
services
not
*
always been
in the real estate field is based on
constantly strengthening econ¬
of all the Western World, the
omy
President, Central National Bank of Cleveland, Ohio
peacetime
with
breather.
a
must
agricultural
have
fortunate to live and have
a
take
or
What
centers.
GELBACH
GIRARD
have reached their peak plateau for
the near future and are due to level
technical advance essential to its role
L.
A.
staggering work load ahead of it are too
great to be ignored. Some of us are impressed by the
fact, statistically at least, that passenger automotive sales
This condition needs to be improved
LORING
operation
Evidence that not only this country, but the world at
the cutting edge of American industrial progress.
as
the
This
large, has
rising costs of materials and payrolls,
and
and
served
Vice-President and General Manager, Willys Motors, Inc.
put the industry in healthy financial position to carry
the research
best
region than we have ever
a crossroads for rail¬
roads of the nation; Illinois is about to become the
crossroads for the nation's trucking lines and a port of
mean
firms have been shy of working capital and have lacked
finances to replace obsolescent plant equipment to the
to
is
S.
snd of accelerated taxes and renegotiation, machine tool
extent desirable.
customer
new
backlogs indicate that many firms will operate at their
best peace-time levels with earnings reflecting improved
volume but also the disproportion of new design ma¬
chines going into production at
destination for the
the
initially
design product. Orders can hardly be expected to hold
the high levels of late 1955 when Government purchases
cf a long-pending volume of special aircraft machinery
for 1957-58 deliveries coincided with concentrated buy¬
ing for immediate automotive plant expansions.
We
,
improved.
1956 orders, but their
to
and
have
tooling
new
things to offer
new
many
share of
favorable
a
earnings
operating
heavier
with
firms
tool
will attract
and
dreamed.
of
buying for these programs is well advanced, as it must
be if deliveries are required in 1956.
industrial
try generally, is continuously exploring the use of new
self-selection methods and fixtures, which are being
adopted in such areas where we believe the convenience
74
page
Thursday, January 19, 1956
.
of
automobile
sales, it should help
type of merchandise
sold
Paul
W.
Goodrich
In the Midwest
more
conservative here than in some
other parts of the country.
and especially in the Chicago
metro¬
politan
region, the heavy rate of investment in new
industrial and commercial facilities points to a continued
high level of employment and prosperity for this area.
employment and stable family income will
inevitably encourage desires for better family homes.
Such rates of
With
reference to the
future,
we
believe that
a
great
deal is
happening in this area that will continue to stim¬
ulate the economy and affect the rate of both commercial
and residential construction.
The St. Lawrence Seaway, one of the most
important
developments, will add immeasurably to all that we al¬
ready have and enjoy in this state. It will transform this
land-locked prairie state into a virtual seaboard
state,
with
all
that this implies in the way of new
commerce
and
industry along our lake shores, our rivers and inland
waterways. This seaway, supplemented by the proposed
national
question
tinent
and
will
state
toll
road
systems,
should
beyond
that this region at the heart of the con¬
become a greater shopping, manufacturing,
mean
cars
each with
a
Jointly with the Canadian Pacific, the CNR extended
Quebec City, thus helping to bring more Canadians into
the widening area of television reception.
i
These and many other new developments in 1955 took
shifting pattern of railway traffic... Cana¬
freight tonnage increased over 10%,
mainly as a result of sharp increases in shipment of mine
products, base metals, construction materials and lumber
as well as most manufactured
products, especially auto¬
mobiles. These increases, which more than offset scat¬
tered tonnage declines in grain, pulpwood and
coal, were
not, however, large enough to bring total traffic to the
peak level of 1953. The most significant gains were in
dian
a
National
low-rated
commodities
and
this
is reflected in
a
lower
average revenue per ton mile than in 1954.
While there was no change
freight rates during 1955, there
in the
were
general
level
of
important develop¬
ments in the rate structure and its administration. A
new
Canadian Freight Classification was filed with the Board
of Transport Commissioners for Canada on March
1, and
on
the
same
date
a
scale of equalized class rates became
effective.
In a move to add to the competitive opportunities of
carriers, Parliament in 1955 enacted legislation providing
for freer administration of agreed charge contracts for
freight transport. Since the latter part of last July, when
the
new
procedures
came
?
capacity of eight;vehicles, )
r *'f
the CBC's microwave TV relay system from* Montreal to
place against
%
into effect, the Canadian Na-
Continued
on
page
78
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
J. E. Jardine, Jr., Now
L. A.
Continental
ceivables required
Copper
sion
to
membership
the
on
Los
An¬
geles Stock
Exchange
through the
i
t
n
a-f i
r
r m
transfer of the
membership
formerly
registered
in
the
of
name
Harry
B.
Brooks.
Mr.
who
Brooks,
has
been
associated
with
Jardine,
Jr.
W.
Staats
&
Earle
J.
by the
expan¬
&
held
on
common
share
one
shares
for
the
at
each
of
a
riveted steel products; pipe and
pipelines; steel snow plows; in¬
sulated copper wire and cable;
five
Jan.
16, 1956. Rights ex¬
pire at 3:30 p.m. (EST) on Feb. 2,
1956.
An
headed
plastic-covered wire and fine flex¬
by Allen & Co. will pur¬
chase any
underwriting
group
ing
unsubscribed shares.
eted
equipment; welded and
inventories
its
and
stainless
steel,
monel
&
Co,
TV/
.
■
:
.
;
Barneft & Greiner
On Feb. 4th Harold Barnett will
admitted
to
partnership in
Warburton, Greiner & Batkin, 120
Broadway, New York City, mem¬
be
bers of the New York Stock Ex¬
Form Embree Associates
William M. Brunett is
in
New
at
239
York
East
City,
of Embree
name
engaging
business
investment
an
offices
riv¬
A
51st
under
from
Street,
the firm
Associates.
change, and the firm name will
be changed to Warburton, Barnett
& Greiner. Mr. Barnett has been a
Franklin,
in
partner
Feb.
of
as
3.
the
earth-moving
ucts
be used to carry re¬
of
equipment.
Prod¬
the company are sold
for
New Golkin Branch
E Kleine Ooens
v/pCllu
is
conducting
business from
chandise
a
E.
securities
offices at 935 Mer-
t
Golkin
„
111.—Alexander
CHICAGO,
Kleine
,
T„
_
...
.
&
Co/has
New York under
Brooklyn,
L. Ward.
R.
Co.
since 1908, was
on
record
his
—
firm membership having been ef¬
fective since Sept. 14, 1921.
Mr.
Jardine, Jr. is the son of
Jardine,
who
was
of
the
Los
Angeles
Stock Exchange from 1926 through
1931. For the past three years he
John
Earle
President
has
been
Vice-Chairman
National Invest
of
in America
Committee, and
LOOK '56
FORWARD
THE
the
Week
member of the
a
Executive Committee for Invest in
America
Week
in
Southern
Cal¬
ifornia. During
1955, he was fund
chairman for the Ameri¬
raising
Red
can
Cross
California
and
now
Vice-Chairman
the
local
Mr.
in
drive
ARC
"V#i
"
'
mmmm
as
director
and
s
w&spawmz&yk
Southern
serves
<r
«
of
chapter.
Jardine, Jr., is active in the
Invesment
being
Bankers
Association,
former Governor and also
a
Chairman
dent
the
of
the
of
California
IBA
He is also
group.
a
former Presi¬
Club
Bond
of
Los
Angeles.
Lester, Ryoits to
Admit H. F. BeaSe
LOS
Calif.—Harold
ANGELES,
F. Beale will be admitted to part¬
nership
in
Ryons
Lester,
&
Co.,
,
Harold
623
South
,
Mt*.
H
WWmwm
Beale
F.
^I
Street, members
Hope
of the New York and Los
WMmkWwMWmWmWf
"
Angeles
Stock Exchanges, on Feb. 1st. Mr.
Beale has been with the firm for
many
years.
wraps
up
the idea of go1 in one clean front-to-back
sweep!
Lamson Bros. Admits
CHICAGO. 111.—On Feb. 1 Lam¬
son
Bros. & Co., 141 West Jackson
Boulevard, members of the New
York
Midwest
and
Stock
Ex¬
changes, will admit Robert M.
Sproat to partnership.
On the
same
date
Edward
F.
Thompson,
general partner in the firm, will
become
a
limited
partner.
Joseph
the
on
S.
New
Feb.
1
Lederer,
Stock
will
become
partner
in
Risser, Harmon & Co., 15 Broad
Street, New York City, members
of the New York Stock
On Jan. 31 Earl T.
of
the
from
Exchange.
Risser, member
Exchange, will
the five all-new
cars
of
Plymouth, Dodge, DeSoto,
See how
the
new
judgment and their hearts tell them: here are cars that
wonderful to drive, to ride in, to be seen in!
must be
comfort in a class by itself. See how easily they stop with
new braking systems unequaled for sureness and ease. See
effortlessly they steer—-with Safety
how
good look yourself. Compare these cars with any new
today—from any standpoint... in any price class.
Take
a
first is THE FLIGHT-SWEEP—the
design. From jutting headlight to
crisply upswept tail, this simple, clean line says power and
motion! This is design that borrows from tomorrow!
new
Viner,
they get into "Drive"—they just press a button of
Pushbutton PowerFlite! See how they go—with
the finest new engines: more powerful, more efficient, more
economical. See how smoothly they ride—with an all-road
note in car
people driving these cars, their faces tell you
they know they couldn't have made a better choice!
Look at the
Touch Power
' T
Steering that works all the time, not part time.
You'll
see
brings
you
safety too—for the forward look '56
the best-made bodies and frames . . . new LifeGuard door latches that are the safest you can have around
you
...
new
and Safety Seat Belts, if you wish.
Visit your
dealer soon. In the forward look '56 cars
you'll discover a new kind of riding add driving pleasure!
CHRYSLER
Edward A. Viner
A.
now seen
—
withdraw
the firm.
Edward
'56
Chrysler and Imperial.
freshest
Exchange,
a
look
What catches your eye
member of
York
forward
Their
cars
Risser, Harmon Partner
;
Millions of Americans have
the
partner
PLYMOUTH,
CORPORATION
DE SOTO,
CHRYSLER,
IMPERIAL
in
Edward A. Viner & Co., Inc., New
York City, passed away on Jan. 4.
DODGE,
See Chrysler
Corporation's Great TV Shows,
"Shower
of
Stars"
a
o+™+
kranch office at 16 Court street,,
direction of Gilbert
Mart.
-
opened
.
,
the oldest Ex¬
change member
&
Meyer
Barnett, which is being dissolved
luii
and
other alloy metal equipment; and
proceeds of the sale to in¬
balance will
Firm toBe Warburlcn,
under¬
Auchincloss, Parker &
Redpath; Bernard Aronson & Co.;
Goodbody & Co.; and Abraham
/&•
crease
the
ible wire; life boats and life sav¬
The company will use $1,500,000
of the
of
members
writing group include P. W. Brooks
sale
high-speed tool steel and forgings;
high quality non-ferrous alloys;
wire
screen
cloth; welded and
of
Other
& Co. Inc.;
and
dustries, Inc. is offering its com¬
stockholders right's to sub¬
scribe at $10 per share for 263,771
mon
rate
by sales represen¬
of the company.
dustries, Inc. is engaged primarily
diversified line of metal products.
Among the company's principal
products are carbon, alloy and
additional
the most part
tatives
1
Continental Copper & Steel In¬
&
HH
sales.
in the manufacture
ANGELES, Calif.—J. Earle
Jardine, Jr. partner of William R.
Staats
of
Continental Copper & Steel In¬
Exchange Member Offer Underwritten by
Allen & Co. Group
Co., has been admitted
LOS
77
(337)
and
"Climax!" Thursday nights, CBS-TV
the
73
The Commercial and Financial Chronicle
(338)
r.
Continued,
jrom
CRAWFORD
76
page
tional has arranged 28 new agreed charges with
bringing the total in effect at
Passenger travel
about the
same
I see
lines
National
fail
us
to
diminish
or
economic
new
in
dence is one of the
These
physical advances
Cape Breton Island
along with about
thousand
a
Four additional
cars.
rehabilitated
and
was
exception—old lines
miles, 550 of them in this
new
meant three and
a half million ties and nearly two mil¬
yards of ballast as well as extensive work on
long-term yard projects such as those at
lion cubic
bridges
our economy,
be
favorable.
CNR
Ontario,
main
to
line
make
between
for
way
Cornwall
and
projected
a
Cardinal,
seaway
power
reservoir.
Rounding out the railway's freight and passenger op¬
the Canadian National a complete
transportation system are its express, telegraph, hotel
erations and making
and marine services,
while
Moving
shipments in 1955
Canadian
reached
were
National
all-time
an
fast passenger trains,
up about 3% from 1954,
on
Telegraphs
high.
Private
volume
services con¬
message
wire
addition
the
to
microwave
TV installations, the
switching systems for
TCA in Montreal and Winnipeg—the first of their
type
installed
new
in North America.
the
to
reperforator
The CN-CP Weathe'rfax network set
Department
speed
of Transport was extended in
distribution of meteorological maps
the
wire-photo
Projects
process.
American defense communications
several
Since
of
most
the
rep¬
as
raw
materials,
reflected
the
gain
our
general
Thursday, January 19, 1956
.
was an
seemed
H.
expected.
unwise
to
It
me
has
always
place too
to
the economy; it is the patient's gen¬
stamina, and resistance that governs his life-insur¬
ance rating rather than the fact that he
may, at any given
period, suffer from a cold or some temporary inaisposition.
eral
In the business
area, the most compelling index is the
long-range prospect of how well our economy behaves
over a period of years or decades rather than
of months
or
quarters.
On
this
basis, it can be shown that our
long term has been excellent and,
short of war, should continue to be
satisfactory.
An important basis for
optimism is the effect of scien¬
tific development and research which has a
strong in¬
progress
the
over
Canadian
on
are
also
and
underway at
gan to take
struction
a
Queen
1955
with
Elizabeth
in
the start
of
Montreal.
con¬
Taken
together, Jasper Park Lodge and the seven hotels now
operating experienced a slight increase in pkronage
over the previous
year.
The company's marine operations also made
progress
Canadian National Steamships traffic showed a
in 1955.
moderate increase and the "William Carson" commenced
a limited service between Nova
Scotia and Newfound¬
land. The "Bluenose" and two vessels under
construc¬
tion in Scotland for east coast service are now
expected
to be in operation next
year.
Corporations like the CNR
are
becoming increasingly
dependent
on research and related staff work
in their
efforts to take advantage of technological and adminis¬
trative discoveries applicable to all levels of
operations.
The year 1955 witnessed
company
new
to put research to
economical
service
the
to
efforts
work
public.
the part of the
on
for
better
The
and
design
more
of
the
automobile transporter is one
example; others involved
grain handling techniques, performance tests on
freight
car trucks and
design work on a new type of pulpwood
car.
CNR's
industrial
development officers continued
contributed
to
Agriculture Department
for immigrants and ex¬
arrangements
tended its work in agricultural
related to traffic promotion.
During
in
1955,
the
every
field.
done, good results
ployment
CNR
it has
as
been in
the past.
ROBERT E.
techniques,
But it
programs.
Although
were
was
the biggest gains were
in job
remains
applying
evaluation
area
and
of
pro¬
to
new
be
em¬
In 1955 the United States aircraft
industry drove to¬
wards greater over-all stabilization of
employment levels
and backlogs —- with an
eye to increasing sales and
profits.
ment
of
business
but
economy,
it
years
made—training in signals, freight
many
in projects for
operation
is
other
facets
of
future
the
essential.
company
In
the
final
This
•
co¬
analysis the
corporation lies in the hands of its
and women.
natural ele¬
a
a
competitive
aviation's younger
-
men
Within the next decade,
between
$1,500,000,000 and $2,000,000,000 must be spent
by the aviation industry on expansion if companies ex¬
pect" to maintain their competitive positions.
HUGH
C.
GRUWELL
Chairman, First National
Bank of
Arizona,
Phoenix, Ariz.
The great migration of Americans from East to
West
which began immediately
following the end cf the war
and.which has so greatly accounted for
important popu¬
lation and economic advances in the Rocky Mountain and
Pacific Coast areas, continues with¬
abatement.
out
great
trans
traverse
Since several of the
continental
-
the
State
commonwealth
highways
Arizona, that
of
has
been
an
imparbeneficiary of this tremendous
tant
movement
of
people.
Instances
showing
this growth abound
but
they all net to there facts: The state
has
doubled
past
ten
its
population
and
years
in
the
bank
our
has
paralleled that growth exactly.
has
'state
added
dustry and
The
manufacturing
tourism
the
to
in¬
bases
extreme.
was
ther
industries
moved to
(1)
air business made
of
American
airliners
manufacturers
backlog of more than $1,000,000,000 for this
variety of plane alone. Piston-powered planes also sold
well, giving emphasis to long-range predictions that air
next
10
and
passenger
years
cargo—will
double
with consequent need for
every
Deliveries
an
in
the
type of
airliner available,
i-
data
ployment
indicate
was
for
that
1955
fluctuation in aircraft
only about 1%, the lowest on record.
em¬
As 1956 progresses, it is reasonable to
expect that airdiner orders will continue
strong and thus increase the
span of steady employment well into the 1960's.
This stability of employment will be of
direct benefit
to the nation's military
establishment, which could draw
on the established
manpower reservoir in the
event
of
the
past
varied
no
spending
Americans
as
a
whole
en
the
business
greater
com¬
care
a
additional
state's
water
farmers
allocated
to
turn
by
of
pany
First
than
the
to
inow
for
Calif.,
Pasadena,
National Bank
writer
became
Arizona
assumed
of
provide
to
up,
are
same
banking
now
time
service
receiving
of
the
Plans
Board.
to
careful
it is
belief the unprecedented
our
pros¬
in 1956.
GEORGE
GUND
President, The Cleveland Trust Company, Cleveland, O.
Business
as
a
whole
all-time peak
will be saying
1956. I doubt, however, that the
climbed
to
a
new
in 1955. I expect that a year from now we
the
same
thing about
The
rapid
business
as
in the past 12 months.
National
Gross
measures
the total
Product,
which
dollar volume of
activity, will probably be
greater for the year
around 3 to 4%
than
a
for
7.5%
There
next
year.
1955, which
gain for 1955
several
are
anticipating
its
compares
over 1954.
for
reasons
moderate tempo
Residential building has
a
more
already begun to decline
(after
sea¬
sonal
adjustment), and the number
dwelling-units started in 1956
is likely to be less than in 1955. It
of
Concept is that
project (invariably a cooperative job by
groups) is managed by one organization or com¬
This managing group is responsible for the cor¬
new
is doubtful if the production and sale
of
new
passenger
automobiles
can
repeat last year's remarkable record.
George
Gund
The
current
facture, assembly and testing—of each participant.
Research and developmental work
naturally came in
for stronger emphasis with the evolution of
these com¬
may
plicated
sion, will probably furnish
cumulation
rate
by
of
inventory
business
a
ac¬
concerns
slow down in the latter part of 1956. Credit
expan¬
smaller push than in 1955,
because the monetary authorities are likely to maintain
—"
weapons
Presidency
the
bank's
perity enjoyed by Arizona and the Southwest generally
over
the past seven or eight years will be duplicated
particular
some production
projects.
Exposed by the new requirements for modern
the
of
5
sum
hyper¬
than
into
larger
even
study.
with
Weapon Systems. The year 1955 saw, for the
first time, "R&D" projects which were
larger in scope
enable
acerage
an
the
At
the
greater
communities
ex¬
manu¬
will
desert
marketbaske!s
Arizona.
of
Chairman
expansion
more
Basic premise of the Weapon
Systems
activities—design, engineering,
Arizona
world.
On Sept. 1, 1955, Mont E. McMillen, Executive
Vice-President of First Western Eank and Trust Com¬
industry's economy.
by the U. S. Air
projects, demonstrates
to
more
productive farm land, and thus prov'de
contribution
held
quicker elimination of
existence the complexity of
today's ultrasonic and
sonic aircraft and guided missiles.
relation of all the
that
itself with
1956
denotes
The Weapon Systems
Concept, used
Force in handling major
many
signs
police
in
repetition cf sales methods which, while
and profit wise, nonetheless aroused
animosity. Otherwise Arizona's business¬
public
steady and well-planned.
a
to
volume
the chance for Tasting world peace.
time did the public relinquish its belief that
for defense in tnis perilous age should be
This attitude also
want
avoid
opinions of
But at
year,
superficial
are
rate of increase will be as
national emergency.
severe
to
To
scheduled
1958, 1959 and 1960 suggest
increasingly stable work force—and currently avail¬
able
Legislature met, repealed the law requiring a 2% tax
on
manufactured goods sold to government
agencies.
This repeal placed Arizona manufacturers on an
equal
the
total
traffic—both
legal structure
zoning regulations, and the like:
December, both Houses cf the
our schools,
the month of
in
the
Robert ,E» Gross
development work.
for jet-powered commercial
tnree
those
first time surpassed farm income, will
rising curve. There appears reason for
some
hope of an early and reasonable settlemept of
the Colorado River controversy and when that
occurs,
accelerated research and
gave
Just
continue
spending.
(3) Further emphasis of the Weapon Systems
Concept
1953
for
minished and the value of manufactured materials which
fense
a
jobs
last year for the
was
spreading general
by the public
of the
for "insurance-type" de¬
announced in
yvith radar and electronics have
signified their intention to do so,
or
anticipate that 1956 will parallel the success en¬
joyed in 1955.
It is believed copper production, in
which Arizona leads the nation, will continue undi¬
for
orders
Gruwell
C.
men
There
Record
Hugh
thousands
involving
some
be foreseen for 1956.
lished in 1955.
necessity
included
These great changes necessitated careful
reassessment
of the state's tax laws and its other
successful
backlogs of commer¬
jet, jetprop and
piston-powered airliners were estab¬
acceptance
Arizona
providing
1956
Record
oroers
identified
munity will
These important factors contribute
to that forecast:
cial
also
an
There
However, in
progress in
success can
which
economy
cattle raising,
footing competitively with manufacturers elsewhere.
smoothing out
its peak and valley
periods, and fur¬
pany.
growing cooperation of union leaders
raising skills and productivity.
most
in
is
in
recent months the
appraisal
training that*
One of the most encouraging features of this
work has been the
of
in
in the broad
claims, accounting and
activity.
much
achieved
personnel
plant
expansions and product testing.
of additional
who have streamed into the state.
GROSS
President and Chairman, Lockheed Aircraft
Corporation
Some fluctuation
guidance
A vital part of aviation's forward
movement involves
the need for new facilities to house research
work,
thus
treme dips and climbs in the aircraft
its
propulsion, firepower and
The quest will continue in 1956.
mining, farming and
extraordinarily lively retail com¬
munity. Within the year numerous
The Du Pont Company's research budget contin¬
ues at
the annual rate of $60 million or more and
we
have high hopes that it will be as
productive in the future
advisory services closely
expanded
every source for
solve tomorrow's problems
can
are
erally
During
to render assistance to firms
considering Canadian loca¬
tions.
The Colonization
and
searching
are
its
prospects. Very large expenditures
being commited to pioneering work by industry gen¬
(2)
form in
new
The
on
today
fluence upon future
points in Canada.
Similarly, the Canadian National's hotel operations be¬
firms
aerodynamics,
systems.
wide variety
large a premium upon short-term
performance in judging the health of
Greenewalt
in
industries.
always be
C.
.Aviation
the trained minds which
indi¬
activity and
a
shortage—the lack of qualified scien¬
and design superior flying
-
,
state
It is true, however, that reasonable
variations in the business curve may
important
tinued to expand.
for
satisfaction
and
Sarnia, Ontario, and Joffre and Garneau in Quebec. The
past year also saw progress in the 40-mile diversion of
express
sales
of
case,
laid to keep the Canadian National's trackage abreast
of the country's economic development.
In 1955 this also
grams
confi¬
consumer's
cation of progress in
are
are
The
Since
Company's production
of business
Railiners
no
Pont
in
put in service
were
optimism.
the
facturers
freight and passenger
began operating
new
diesel
Every year—and 1955
a
should
resents products sold to other manu¬
are
200 diesel-electric locomotives
of
Du
in Quebec and Alberta.
1955
1955
future.
should
and
motive servicing facilities and in passing tracks to get
the most out of new diesel motive power.
Moreover,
In
outlook
fect
being made all across
was linged to the mainland
by rail and road for the first time in 1955, on completion
of the Canso Causeway. Extension of rail lines was sup¬
plemented in 1955 by widespread modifications in loco¬
Canada.
by
.
tists and engineers to dream
Business in 1955 showed the full ef¬
Canadian
Throughout the system, many long-needed improve¬
ments are being made, enhancing its ability to render
good service and strengthening its basic earning power.
CNR
immediate
the
transportation market is larger and
more complex than it was a few years ago, and th£ CNR,
like other carriers, is constantly striving to adjust its
services to this changing market.
The process of adjust¬
ment can be seen on many fronts: in new trains and lines
and in line abandonments (of which there were eight
totaling 144 miles in 1955), in the extension of ''piggy¬
back" service and
incentive loading rates,
in faster
freight and passenger movement through dieselization,
in dinettes and coffee shop cars which in 1955 served
30% of Canadian National train meals, and in the addi¬
tion of truck routes for better service through integration
of road and rail transport.
the
the
during
peaks
principal ingredients of
-
'
The
1955's greatest
was
to believe that the confidence that has
reason
no
carried
was
year.
some
GREENEWALT
articles.
Faster trains like the Super
1954.
in
as
shippers,
end to 95.
year
Canadian
over
H.
President, E. I. du Pont de Nemours & Co.
Continental, together with special tours and incentive
fares, offset declines in immigrant travel early in the
up
.
.
"
,
Continued
on
page
80
Volume 183
Number 5460
'.The Commercial and Financial Chronicle
..
79
(339)
Continued
The
from
ticular
farm,
Si"£ ca,!?s are
the West
markets
effects,
a
the
in
severe
to
Here
areas.
export
most
found
are
all
need for
loss
had
but
extent in
aptitudes,
South, particu-
the
has
to his par-
common in areas
and
where
or
and
interests
of
larly
promptly
forgets. A properly prepared plan
is a joint product in which the
some
there is
form of intermediate
a
credit which permits matching tne
loan advances to the steps in the
conversion
the terms
and
process
of repayment to the expected flow
ot income.
.Intermediate Agricultural Credit
The need for intermediate credit to farmers is not
entirely new
It was an issue
throughout the
With the present cost-price situation
in
agriculture,
everything
borrower and lender
Changing Credit
Picture in Agriculture
of the
sources
to get the loan and then
9
page
mote
tally
in
interested
both vi-
are
and
which
possible
will,
fact, be referred to frequently,
should be subject to
appraisal
It
periodically, based on actual
achievements, and should be flex-
problems
Unless the borrower ibie enough to be modified
by
has the training or is willing to rnutual agreement if conditions
seek ?nd u.se,.tIie adXlce °f c°ro- require such change.
petent specialists, he is not apt to
be a good risk regardless of his
collateral, for
business transaction is
a
desirable
one
unless it
promises to be mutually profitable
to both parties.
in
appraising
the
borrower's
proposed
plan, there are several
points to be considered. First, is
the unit large enough or can it
be
made
large enough without
prohibitive cost to provide an ade-
Banks
with
sentatives
making
are
sucn
not
are
staffed
with
agri-J
cultural specialists may find it
somewhat more difficult. Banks
pro-
connection,
overlook
the
part-time
person
the
has
needs
of
farm
operators.
If
reasonably secure
off-farm job or can get one and
operates his farm on a part-time
basis, his loan repayment ability
a
help him
as
on
a
.sound basis where-
his farm earnings alone would
not
justify the loan.
The
management
in
today's
a
of
and
some
farm
new
past performance.
velopmg such plans.
,
^
-
credit
nnr
l^ah ^atistics
Will
hmve
the
borrower's
schedule
anticipated
income
realistic
in
making due allowance for weather
b^s
oasis
present two-way break
Patl01?s.
« s o
gage
state
in
when
great
deal
The
lending
the
is
in agriculture
as
present
wheat
fluctuations?
difficulty
farmers
small
no
m
market
and
of
many
cattlemen
measure
due
to
unwarranted
a
by the usually good weather and
we
now
best
war
lending.
Techniques which will permit this type
of lending need to be developed,
generated
make provision for years of uricontrollable adversity, but (it
making intermediate term
loans, it is imperative that a real-
should also require offsetting
istic and careful appraisal be made
anticipated returns.
of
t ,e
pre-
Pay™™f 'n yearS of higher than
It should also
take account of the possible effects
only the integrity,'industriousness, of quotas and acreage allotments
situation,
including
not
and collateral of the borrower but
and have sufficient flexibility of
aUernaUve enterprises to meet
plan of operations, at such conditions.
also his capability and the soundness:oi
•least
his
for
t
period
.e
of
the
The farm plan should be
con-
tcmplated lean.
t
As
mentioned
before, modern
highly complicated
technical
of
Just 10
Inc.,
a
wide
and
years ago,
was
document,
ing
farming is a
undertaking, involving
riety
i^continuine
him
unitwhich
promise
va-
business
laying
a
out
hv-
the
tn
xrai,1P
of be
data
needed,
such
prospects,
as
crop
classification
yields,
crop
duction goals, and
erations.
some
They
cases
spective
specific
for
with
his
the
be
s
on
an
a
pro-
preparing
farm
to
a'nnliea-
loan
tion.
Service of the Banker to
Agriculture
ajs0
be
The service that
a
banker
efficiency.
Bankers
perform
can
service to farmers
by helping them to limit their ex*
an
important
penditures to those items which
a™r most likely to improve their
efficiency and income.
Continued
serve
on
page
seeinghislifetime
self
& FAMILY LINES
Iraduallv 'disrated
Those
borrowers who cannot develop
p^nom1ralWn ?
eXer becahse of
o
f it
a
resources
f
b 1
P„TtfL Tff f^
ramd-
iohs
individual
often
results
improving his
with
nr
time, off-farm employment.
move
Svwitty 7U 1ttdu4&iunl Sout/l
orPb/cau3e
nafJprial
3?*^
S^ent thefr faim earnings
jatter
an
unit
e
lack of physical
n
This
in
the
own po-
S1l10n and aI the same time allows
the land to be recombined into
be regarded
by the borrower
usefless paper which he signs
...
larger
,
and
.
fi
more
n
efficient
units.
on
this operating
principle: good service is the best insurance
there is for
utility prosperity.
We feel this
our
revenues
to
In this
case.
decade,
customers
Atlantic Coast Line
least in
Lines Leased
operating
are
up
with Louisville & Nashville
Connecting Lines
84%. Our
our
10th year,
.
Desirable Plant Sites
Jointly
Meeting Your Specific
Requirements Are
Available In This Area
Indiana Gas &
Co., Inc., is serving approximately
96,000 natural
gas customers
communities, each with
an
at
have increased 58%.
At the close of
on
our
...
have increased 269%. Dividends
stockholders
Water
Lines Affiliated with
principle is sound
For Detailed Information Write:
in 59 Indiana
an economy
based
R. P. JOBB, Assistant Vice President
agricultural-industry diversity.
We will
gladly furnish
our
Wilmington, N. C.
annual
report to you on request.
.
.
06 e
INDIANA GAS & WATER
GENERAL OFFICES:
COMPANY, INC.
INDIANAPOLIS 2,
INDIANA
81
RAILROAD
im-
tt Scant
Indiana Gas & Water Co.,
organized
pan
Some appraisal
arrived
little
not
a
a
be
in¬
*:ows
broad outlines of the farm operation for the period ahead. It must
as
in
able
with
borrower in
plan
use
price
similar consid-
may
work
to
land
and livestock pro-
+y,P
n^ substantiallv
whet-
high
prices
during
and early postwar period.
sound plan for term credit should
In
earlier, Federal and state agricultural
workers
can
be
of
help,
They can help formulate the basic
doubtful value to tne
abnormally
methods
be
stated
a^nraking sich
the
it
than
the
optimism
will
As
partici;
ior appraising sucn pariici
for
is
as
such
to
and
must learn
we
more
about
adapted
loans.
reach
we
such
industry,
know
cycles
before
commcnplace
is
mort-
short-term
loans and
However,
on
plan
one
others.
of
break to include intermediate
term
leans, in addition to the
way
to
render to agriculture in financial
at, based on planning
has
been
mentioned.
the knowledge and judgment that Since a prospective borrower must
he exhibits in mapping his farm scrutinize his projected income
plan. Addition of or conversion to and
expense
picture carefully
a
new
enterprise always entails when a farm plan is prepared, he
some risk, and such moves should is less likely to purchase a mabe undertaken gradually and with chine or some other item that he
sufficient flexibility so that the does not actually need for greater
can
processing earlier plans will
Is
t iree- r
a
preparing
common
major
selves of the assistance of county
agents, Soil Conservation Service
institutions
more expeditious
subsequent
cases;
of
Many of the problems encountered
complex
reasonable number of years? SecCity banks can be of much
were
set up at that ond' is the land adaPted or adaptassistance^to their correspondent
tfsie.
The need always becomes able
to the contemplated use? banks in helping them to develop
greater at times of declining prices Much cf our present farm problem this phase, of their farm lending
and rising costs when farmers find comes from the misuse of land. In service.
In addition to the tech- pian can be slowed down or
themselves unable to finance such spite
of years of concentrated-meal assistance, which the city speeded up as developments warexpenditures from one year's net emP^asis on s°il conservation and banks can provide, they may at ranf.
earnings. It is especially pressing PrcPer land use, we still have vast
ke asked to participate in
At first this farm planning may
at present because of the
rapid acreages with a low or hazardous the larger loans foi wn c
t e seem 0ner0us and costly. Howgrowth in intermediate t:rm items fr°p potential that should be re- local
banks rcsouices aie noj; ever^
experience gained in
needed on farms
Snmo dav
turned to grass or nmoer.
adequate. A sound farm plan and
day our turned to grass or timber.
1920's
handling
submitted
potential
the prospective borrower
consideration
basis for the
as a
in
should
we
credit
farm operations—can be appraised
to some extent on the basis of his
his family and still leave enough state agricultural people in deover a
to
with agricultural people and those
without them should avail them-
Quate living for the operator and personnel and other Federal and
marSin to rePay the loan
done
greater efficiency.
this
not
a
be
can be based on these earnings as
agricultural repre-;well as on the earnings from his
ideally suited to farm. Thus, it may be possible to
loans, and they appear to be increasingly interested
in this development. Other banks
which
In
should
80
The Commercial and Financial Chronicle
(340)
Continued
from
in
On the upside,
there is little doubt that nonresidential
construction will have another big year in 1956. Busi¬
outlays for new plant and equipment, one
of the
major factors in our economy, promise to increase sub¬
stantially. State and local governments will spend more
lor highways, schools, and other public works. And with
We
envision
I
continued
FRED
G.
GURLEY
Santa Fe received 18
ing the
President, The Atchison, Topeka and
Santa Fe
27
Railway System
Business generally has been
good
as
Income
]
i
M
K,:,
will
be approximately 10% above that of
\
1954 but lower than the peak peace-
j
''1*1
-
$'t' -3
•
*s
J
is
I
evidenced
by
fact
the
that
/
FREDERICK
to slow
rise
(1947-49=100),
freight
new
cars;
provements
and
this outlay, $49
purchase of 5,125
$25 million for im¬
7
or
to
roadway,
Fred
G.
Gurley
equipment; $15 million for new
train cars including 45
Hi-Level
the
for
cars
new
El Capitan to be inaugurated
in June of next year, and $13 million for 80 new Diesel
locomotive units.
addition
In
Capitan
the
to
inauguration
principal
of
projects
the
Hi-Level
new
scheduled
for
El
auto
laying of approximately 300 track miles of new
249 miles of which will be continuously
welded), the installation of a Telersgister electronic res¬
ervations system
in important ticket offices, and the
of
work
on
modern
a
retarder
yard
at
of
The
$6
in
As
Corwith
Hagemann. Jr.
will
Nov.
Demands
soared.
processing machines in its accounting department
that
stalling
freight
during
head-to-fear
trains will be
end
1956
of
communications
radio
the
banks
also
between
nine
struction
miles
on
of
traffic
control
the Coast lines.
pleted, Santa Fe will have
traffic. control
We
expect
Santa
a
signaling.
'
of
bill
wage
ready negotiated
total of
;
increase
an
Fe's annual
.
at
as
a
\
railroads
will
million
am
one
of
1
The
result of increases al¬
now
At
who
believes that
President's
Cabinet
Committee
recognizes that the time has
come
reliance
"cornerstone of
on
the
transportation
by
Even
protected'the traffic and
costs/
The
railroads
freedom
Committee
and
to
vantages.
the
base
make
to
pass
on
so
and
1955
the
about
Reserve
must be
$11
alarmed
Banks
balance
cannot
at
sheet
the
1948
of
the
Federal
Reserve
$216
bililon.
Reserve
Even
has
above
their
credit
balance
characterized
as
1955,
of
several
Interest
the
full
of Jthe rate increases in 1955
TelT as'yet.' Banks now have larger
effect
for
losses
tax
purposes,
sell
to
on
customers'
1955.
in
Some
were
because banks found it
to provide funds to meet
some
securities
loan
Securities
securities
on
demands.
,
.
.
If loans continue to increase in
decline
or
1956, if deposits should
combination of both, banks might have to
a
furtheij losses this
Many
banks to
minimize
year in the sale of_ securities.
their losses in 1955 sold off
the short end of their
r
cut
down
their
portfolios. In doing so they have
liquidity and some have a very limited
currently in their portfolios.
of short securities
amount
These banks may be
to
forced to take some losses in 1956
liquidity position or to meet loan de¬
deposit withdrawals.
repair their
mands
or
Due
to
Conclusion
the
restraint
level
of
As I stated last year, the basic
of inflation is, too
many dollars, and the way to
stop inflation is to reduce the number of dollars, or at
least stop increasing the number.
program
of
feeling that banks
dollars
ing the Dow-Jones Industrial Average to
a new
are
bond
business
the
activity and
Federal
the credit
it
Reserve,
is
my
watching their loaiv portfolios and
accounts more closely
'■
*-
*
fe
4*
*
*•-*.*-
*
4.
*
n
%
•
into
ceeding
are
1956
confident
tions may
of
I
with
their
arise.
than
more
ever..
than
Banks
usual
are
prjo-^
.;
I./.
(.
Continued
I
■
'
f
|
1
.
f
■
t
t
-
caution,
but
ability to meet whatever condr,
all-time
f
w
of the year as now.
a
had
necessary
In spite of a tremendous bull market in
stocks, carry¬
»
as
active
billion
the end
little higher or about the same as they
Bank earnings should be higher in 1956 than
be
cause
its installation
■m-
taken
their
which
one
Even if the Federal Reserve this year
topping out the boom, the momentum
great that I would expect 1956 to be
profitable banking year with deposits
at
same
now.
1955
incur
year
so
Losses
according to estimate.
railroad.
year
the
may
Banks
its
reversed
by
the dollar from
power.
some.
and
during the
increased
keep
risk of lending in a boom period
Credit losses, small in 1955,
1956, but not to the extent,
in my opinion, to
affect earnings.
Loan totals will
remain high.
Bank dividends should tend to increase
restraint, total reserve bank credit has increased by
$987,000,000, moving from $26,433,000,000 on Dec. 29,
1954 to $27,420,000,000 on Dec.
28, 1955 to an all-time
high.
The total money supply even during 1955 as
measured
to
are
greater than normal.
may begin to increase in
concerned
today
short-term liabilities to
certificates
we
loan portfolios and the
by banks have increased from $6
billion. Included in this 11 billion
holdings
if
so
are
undoubtedly
since
policy of
supply. The de¬
with
haVe" not been fully
ratios.
expand
about
in
absolute
an
in
active "and
are
ultimately
they owe, or '
that
become
concerned
are
that
amount
their
to
Federal
stated
against inflation only until the pinch begins
adversely.
is
1955
rates
financially embarrassing.
the Federal
of
the
'
during the
are
effective
about
both striking.
policy of re¬
straint in mid-1953 until December
1955, there has been
an
increase in the money
supply of about $20 billion
as measured by the combined
figures of total deposits in
all banks
and
currency
in circulation, the combined
figure having moved up from about $196 billion to
project "involved installation of approxi-*
finately
103
miles
of
continuous
welded
ap¬
rail,
proximately 63 miles of which was done by a new elec¬
tric flash-butt welding
process never before used on an
of
lending, both in
are
directly
Any program to stop the boom will meet tremendous
opposition and for fear of starting real deflation, the
measures
to slow down the boom probably
| will con¬
liabilities in gold if they
Such gold withdrawals if
they occurred could
choose.
Since
higher
that the
to
bankers
90-day Treas¬
Bills of almost $4 billion. Foreigners have the right
prove
have
the benefits
operations
they
relation
reported
over
the
up
the
to affect them
an
lenders
their
out
carry
and
rates and tighter credit have never
popular with businessmen, labor leaders and poli¬
ticians, to say nothing about the voters. Even many
to demand satisfaction of
these
outstanding
The company continued
to
with
throughout
Banking Outlook Good
fall
are
the
Higher interest
periods, namely,
Increase—
billion
at
been
as
$2,6C5
They
fact
foreign
ury
the
of carriers with
economical
Certainly this is
from
48
Martin
depreciating further in purchasing
-■*
public, so that the nation's total transportation bill could
be substantially reduced.
Completion of our new direct main line into
Dallas,
Tpxas, was the high point of the current year. Another
American
the
are
a policy, the traffic would
gravi¬
transportation best fitted to handle it.
and
%
tinue to be mild.
other
Federal
ratios.
billion
for
as
recommends, therefore,
it possible
the
about
regulated carriers be given greater
their prices on their own natural ad¬
efficient
in
and
foreigners
Under such
would
most
revenue
and
sheet
other
tate to the form of
This
calls
which
follows:
1%%
38,543
over
indefinitely and
the benefits of low
regulatory policies
demand
$35,938
the
that
far in
so
12/31/52
in
Gov¬
industry operating at capacity
only increase prices and not produce
any more goods. After all the artificially created money
that has already been pumped into the economy since
the Summer of 1953, it would seem that our future
expansion should be financed largely out of savings.
(Last half 1952)
$4,729
1956 is tied
Chairman
can
6/25/52
increase
the
stated above will
as
yet
It is inter¬
expansion
is
repercussions
banking in
not
or
Board
this
meet
in
with
Z%%, but
it
indicated
He
inflationary
for
43,361
amount of money
regulatory program."
Today the. public is often denied
cost
and
as
re¬
been
year
lime in the future this credit expansion will
end either because the borrowers
an
banks
amount
Transportation
adjust our regu¬
forces"
has
reporting member banks (billions)
concerned
on
to
competitive
modernized
a
to
become
the
latory-policies to these competitive facts
"increased
marked
some
come
a
those
outlook
$43,632
absolute total of
regulatory
pattern still is influenced too much by the thinking of
the days when the railroads had a so-called
monopoly,
on transportation.
We must come to grips with the reali¬
ties of competition as we face it
today. The report by
the
moderately
the
to
that
"prevent another 1929
money
1956 still appears to be strong.
For the Federal Reserve Board to create new money to
Reserve
is
in
so."
do
to
country.
with whether
to be subsiding.
in loans of commercial
appear
six-months
Increase,.
along all right, but there still is an
wise and sound treatment of the com¬
petitive forces in the transportation field.
I
The
the increase
12/28/55-—
com¬
get
urgent need for
A
installment
(Last half 1955)
;//v;-■/;:g/i'4/tg//.;Z^;
$15M>
two
over
2,178 train miles of
least
not
6/29/55
being negotiated. Also antici¬
pated is a gradual, but continuing increase in cost of
materials and supplies.
Physically strong, well financed and well managed
or
does
dangerous
entire
the
bor¬
Total loans of
signaling under con-'/
When these have been
invite
have
compare
Chairman William McChesney
sub-committee of the Senate
a
endeavor
to
for
new supplies of money through the commercial
banking system with Federal Reserve assistance would
the fall of 1952 and the fall of 1955:
virtually complete on the main
Chicago and California.
We have two
Centralized Traffic Control projects under construction
on
Coast'and Gulf lines territories, totaling 189
miles,
line
boom
possible
high)
creating
to 2V4%
214 to 2%%
3
before
mand for loans
1% to 2
from
is
if
present time the demands for funds far exceed the sup¬
ply of savings, and that to met these demands by
2
advanced
it
(even
restraining the increase in the
through
and
rate
a
Federal
1V2 to
loans
at
Banking and Currency Committee
if
repre¬
credit
been
on
program
bank
testified
ernment's collective
residen¬
prime rate for large top commercial
The
esting to
in¬
our
Martin
overstimulated
policv
22, 1955
for
has
rowers
place in service an electronic microscope for
testing Diesel fuels and greases.
expected
operation
and let interest rates
the money.
opened, the Dis¬
the
credit
available
Federal Reserve Board
in
Reserve
\Vz%,
was
April 15, 1955
Aug.
4, 1955
Sept. 13, 1955—
will
is
at
made
econ¬
probably
successive advances in the Discount Rate
1956
Besides Tele register, the railroad will progress farther
the electronic field with installation of electronic
It
Rate
Bank
into
and
lower
from
the year 1955
strictive
H. F.
complete construction of a
Maryneal and Silver in Texas
and will begin construction of a line from
Hespiria to
Cushenbury in California.
<iata
and
starts
recoil
a
count
between
spur
housing
sent
million.
railroad
19-mile
month
in the
previous activity.
Yard, Chicago. The retarder yard will take an estimated
three years to complete and. will cost in the
neighbor¬
hood
production
tial
(nearly
start
best
thus
those who really need
approaching or has already at¬
tained
capacity operations.
Lower
clude
rail
the
increasing inflationary pressure.
attempting to do this has been
credit expansion
on
to
are
fast
in¬
1956
above
The current rise
time
same
down
sufficiently high levels so as to discourage un¬
necessary
borrowing.
The limited amount of funds
omy
has carried business activity
beyond all previous peaks. We have
record
employment and inventories
are being built
up, although not yet
at a dangerous rate.
It is apparent
that industry in general is once
again
structures
passenger
streamlined
points
1953.
cover
chiefly for produc¬
The
Boston, Mass.
Of
date.
that bank credit is used
see
The orthodox method of
tory
will
connection
Federal Reserve Board is faced with an
extremely
difficult, and so far as history records, impossible task
of trying to furnish funds for sound business
expansion
The year 1955 ended with business in d boom of
large proportions. Industrial production, as measured
by the Federal Reserve
Index, is currently at 144
to
in
year-end
purposes, i.e., transactions that will increase the
flow of goods and services rather than bid
up prices.
HAGEMANN, Jr.
present year's capital expenditures
totaling approximately $102 million
will be the highest in Santa Fe his¬
million
Federal Reserve Decisive Influence
deavor to
President, Rockland-Atlas National Bank of
the
made
tive
'
H.
1 think the future for our industry
good, and our faith in that future
being
restrictive
without at the
time year of 1953.
April 25, from
still
v
v
commercial
banking system can be helpful by
carefully scrutinizing all loan applications to avoid mak¬
ing loans for strictly/ speculative purposes and to en¬
Hutchinson, Kan., and Lubbock, Denton and White Rock
in Texas.
on
are
The
and by the end of 1955 will have received
passenger train cars.
at Denver, Albuquerque, Phoenix and Chicago
completed this year, as well as new stations at
were
for the year just ended
increased
stocks
with the December
financing and
adjustments. If this restrictive policy is
to be effective, it must be
pursued until the abnormal
upsurge in loans is stopped and the boom dampened.
the
offices
1955 from the standpoint of revenue.
as
tion
year,
new
of
policy of the Reserve authorities has
increased in tempo throughout the
year, but has been
gradual and moderate with the exception of the relaxa¬
A new signal repair shop at Topeka, new locomotive
servicing and car repair facilities at China Basin near
San Francisco, and new or improved ticket and traffic
good in San Fe territory
except in some agricultural areas which were adversely
affected by drought. The year 1956 should be approxi¬
mately
The
Diesel locomotive units dur¬
new
were
Purchases
-*
„
,
largely for cash.
Prior to 1955 we had 22 flat cars in Piggy-Back serv¬
ice, and by the end of the current year we will have
equipped 46 additional cars, bringing the total to 68 cars.
1956.
3,436,000,000
*3,973,000,000
La test available.
70%.
.
Cleveland
prosperity for
to
ha3
market
$2,445,000,000
Margin requirements
new
We now have 30 electro-mechanical temperature con¬
trolled refrigerator cars for handling frozen food, with
200 additional cars of this type under construction.
the past year the Cleveland area has enjoyed a
increase in business volume, employment, and
income.
in
2,350
1953
31, 1955
*
60
received
the stock
in
31, 1954.—
Oct.
freight cars during the year,
including mechanical temperature-controlled refrigera¬
tor cars, "Damage Free" box cars and insulated box cars.
personal income high and rising, consumer spend¬
ing should show a further gain in 1956, particularly as
to nondurable goods and services.
Over
Dec. 31,
Dec.
main tracks.
total
notable
where flash floods have
been a problem.
Vapor-drying treatment of ties was stepped up at
Somerville, Texas, and Albuquerque, N. M., plants with
a marked reduction in splitting of hardwood ties as com¬
pared with air seasoning, and the company's mechanized
tie gang total was raised to seven gangs renewing ties in
of the
ness
the West
Thursday, January 19, 1956
.
high of 487, credit employed
only increased as follows:
programs of Centralized Traffic Control, head-to-read
radio on freight trains and high water detectors at points
78
page
policy of credit restraint as long as there is any danger
boom getting out of hand.
a
.
.
^
on
,
page
82
: t t i, t,».' t > 1.1
1
Volume 183
Number 5460
Continued
from
The Commercial and Financial Chronicle
...
79
page
of
j
(341)
credit
ening
;
It
should
be
not
implied
meeting
these
need to know
from
credit
desirability of
needs, particularly in the intermediate term
several
prospect
for
provement
further
to
Federal
this
stated
Federal
in
connection, the
one
credit
re-
law
all
to
examiners
Federal
no
has
letter
a
Reserve
there is
tics and conditions of such lending,
So far, I have dealt mainly with
re-
Board
Reserve
cently
regulatory
some
or
to
:poses
and
to
be
Some
,
agricultural purthat such loans, made
bankers
have
attempted
have
may
were
been
if
not
criticized
the
terms
of
being met
by
increase
be
that
necessary. over
before
yea.rs
liquidated.
the
tively
of
could
be
debt
9%
It is also possible that
real
bankers may not have real-
.some
ized the needs
/tunity
for
or
potential
profitable
service
the
to
the
to
in
This
with
plan
as
quickly
protection
a
in
data
credit
at
present
the
of
is
properly
and
with
a
loss
do
that
increase in the cost of farm credit.
is
further
is
expected.
available
the
value
compared
a
of
amounts
if
and
he
We have little
term
of
on
with
farm
of
20%
debt
assets,'rethe
in-
machinery,
livestock
7\>
m
(
sijiii
/
pur-
''
,
CUBA
f.fm
DOMINICAN
REPUBLIC
-v
■
SBp
%:•
1
•
isugar
'/>
-vn
v«,.
HONDURAS
is
GUATEMALA
flour!
EL
NICARAGUA
SALVADOR
COLOMBIA
COSTA RICA
healthy situation
be maintained,
PANAMA
private
debt.
tremendous
This
indicates
demand
cacao
ECUADOR
Some
pressed
intermediate
that because of this
dition
fear
agriculture
versely
affected
has
been
would
by
the
for available
credit.
we
portant field.
to
increase of $200 billion in nonfarm
meets
lending to farmers and
con¬
leadership in this im¬
only
economy,
total
farm
debt
increased approximately $10 billion
jn the last
10 years against
an
knowledge of the
extent
your
Compared with the rest of the
the terms of the agreement.
overall
tinue
farm
While the legiti-
the end that this
may
financing will be
the
have the
imagination and initiative to
slight
challenge
am sure you
evi¬
these
rela-
must be met, it is important that
it be done with discernment to
knows exactly what
promised
real
a
I
is
in
higher in earlier
even
While the total
of falling prices.
The borrower is thus
in
terms
is
mate needs for agricultural credit
specifically and accepted by both
parties so the borrower, as well
assured that trie
There
empha¬
some
interest
not
farm
these safeguards be written down
tne lender
problems.
even
accentuate
in
Conference
your
-
chased on credit, it is still low
compared with 19% in 1940. It is
that embodies the necessary safeguards.
It is much better that
as
agriculture
of
it
agreement
loan
of
results
this
at
dence
Mortgage
fleeting, at least in part,
afforded
prepared
ance
the
though
it
man¬
Your attend¬
re-
that
represents
market
estate
in
position.
represents 11% of total
possible,
as
be
can
on
production is to the
buy
indeed fortunate that this healthy
debt situation exists at this time
minimized
advantage
hehce
help farmers learn better
agement techniques.
pro-v
be
the
of
cost
has
prices and
of farm
to
on
1:10,
creasing amount
equipment,
and
or
cost
any
pressure
total
1:5.3 to
Lenders, of course, need protection, so if a lending operation
is not going properly or there is
danger of loss the operation can
out
nonfarm
pro¬
min¬
1945, the
debt
available
strong
years.
.
straightened
im¬
any
prices,
upward
will
few
a
To the extent
in 1940 and
oppor-
this field.
1940
farm
investment
agricultural
might
period
a
loan
added
tunatelv.
though
even
renewals
imize
furthering
and that
which
to
This
squeeze.
in
farmer
restraint
material
farm
efficiency
credit
show which of these two
predominate. We do know, however, that
note
the lender and the borrower both
understocd
agricultural production plant
changing demands of our
the
represents operating losses, it is a
matter of grave concern. Unfor-
ex-
the
From
total
efficiency.
It
is entirely possible that such loans
aminers
are
the
cuctive resources, it may be in'dicative
of
increasing productive
to meet this situation with annual
.renewals of _short^term loans.
There
To the extent that rising debt
fleets
are not
undesirable,
as
agricultural
any
already
cost-price
immediate
little
in
is
the
for
From > 1945 to Jan. 1, 1955 that
ratio has narrowed slightly to 1:9.
for
considered
the
assets dropped from
sound credit basis,
?on a
of
problem.
make.
ratio of
regu-
{banks from making .intermediate
loans
phase
say
strong
a
general observations I would like
that
lation which prevents commercial
'term
of the characteris-
pressure
farmer
With
only
In
may
ductive
The
from
would
due
community. There
pressing need to improve effi¬
ciency on many farms, to adapt
a
increases.
suffering
ing and
were
we
to
serv¬
to
farm
loans
then,
days
ice to the farm
total
is
that agriculture is still in
these
domestic and export markets, and
the
striction.
of
bankers
needed
squeeze.
some
country
continue to lead in financial
..
,
closing,
5%
the
credit
position and worthy of the
things
felt they
restrained from making such
than
less
costs.
In
that
farm
credit
study the extent of bank participation in intermediate term lend-
have
realize
we
outstanding
represents
farm
in
capacity
this
of
cost
credit
years.
Others, which are
equally interested in serving their
customers,
the
is
in the not too distant future. It is
hoped we will learn from the
doing
excellent job in this field for
an
and
when
sized
tight¬
beginning to be reflected in price
considering the
study of agricul-
a
crowding
areas
tural lending by commercial banks
Some banks have been
area.
many
The Federal
more.
is
mand
Reserve System is
not
are
While
increase
may
farmers, it is rela¬
tively to their advantage. The rest
of the economy is
booming. De¬
The Changing Credit
Picture in Agriculture
these remarks that banks
restraint.
credit
credit cost for
81
any
be
ex-
coffee
con-
ad-
measure
HOW ARE YOU OH
READING
THIS LIVING CIRCLE STRENGTHENS THE AMERICAS
The
Maya civilization, centuries
great
ago, rose to
Why? Perhaps because this remarkable people
relied
on one
crop—corn; or
economic and cultural
Check your
future against these present
lumber, bananas,
because they lacked
now
We of the Americas
•
Growing markets, high buying
•
Friendly government, favorable taxes
one,
•
refrigerators, telephones,
realize that Interde¬
our
survival. Today not
Thus
we
have
that
a
High worker morale, increased productivity
•
Dependable electric
advantages
ventures
can
ground"
study.
tion
from
be
local
relocation
but
many crops
and products flow north¬
ward from Central America
.
.
.
We'll
gladly
Service, P. O. Box 3100,
assist
Address:
in
or
entirely
coffee, hides,
friendship and better living.1
United Fruit Company
new
securing
Industrial
General Offices:
informa¬
80 Federal
St., Boston, Mass.
Development
Miami 32, Fla.
United Fruit Company has been serving the Americas usefully
for 55
FLORIDA POWER & LIGHT COMPANY
and
people of the American Republics closer and
closer in bonds of
fully realized only by extensive "on-the-
sources.
tractors,
living circle of economics
power assured
for
cars,
strengthens the Americas, bringing the
Climate ideal for living and working
full
and Central America's
power
•
Florida'.*?
...
goods and services flow southward. They buy
advantages which Florida offers your business:
pendence is the key to
abaca
other manufactured articles.
with others.
contact
cacao,
Dollars for these crops
heights and then perished in the jungle.
years—employing and developing human skills,
conducting extensive research, cultivating, transporting and selling
bananas,
sugar
and other
crops,
and expediting communications.
j
82
The Commercial and Financial Chronicle
342)
Continued
from
ELVIN
points and designated port cities handling international
shipments by both air and surface.
80
page
Recent and future arrangements and new services de¬
HALLANDER
E.
signed by Railway Express to bring world markets and
sources of
supply to "Main Street U. S. A.," represent an
emphasis on international shipping which dates back to
Corporation
President, Lynch
Lynch Corporation serves two major growth indus¬
tries:—glass containers and packaging.
The current boom in glass bottles appears to be a
continuing development during 1956 and, consequently,
our
production
of
machinery for
the
above
1955
4 While tin
cans,
levels.
plastic bottles and
cartons
have enjoyed
milk
paper
much
good markets, glass bottles are still
used for 96% of all home deliveries
and
on
a
1956
our
operations.
its
payroll
million
water
with
routes.
a
anticipated
to
as
be
a
would like
about
at
higher than they
of progress.
the
same
than
motor
to
conditions
of
and
shipments
Oil
oils
that
equaled in several
Such
bursts
demand
a
heating
had
us
speed will
gasoline
was
foul
any
solution
Gross sales are
level or slightly
see
these
of
available to
industry
1955.
time
L.
We
play
going
destructive
who
full
by
foresee
the
business
widespread opinions
financial
and
John
1956.
consumption
time
would
of
all
should
goods
mean
types of
continue.
realize
peace¬
a
cure,
seemed
but several of the
that might
programs
to
be
"Live
break-down
a
to
that
be
ahead.
Confidence
business outlook is based
on
in
The
of
the
the
ing
A.
L.
larger
faster
markets;
methods
sus¬
improved
.
production; the
growth of service industries; greater
leisure time activities; and a
grow¬
Hammell
ing
foreign
trade.
Continued
low
inventory practices at retail levels and the needs for fast
stock
replenishment also
The
in
railroad
new
lines
industry is investing billions of dollars
rolling stock and improved facilities. The air¬
buying aircraft which will usher in the com¬
jet transport age.
Necessity will soon force the
a
construction of
peacetime
All
these
an
military
factors
confidence
the
golden
transportation still lies ahead.
the
hicles
kept
service
of
for
3,000
new
put into service.
new
express
during
1955
cost
of
13,500
In
such
automotive
accordance
fleet
used
was
in
installed in
handling equipment
and
new
other facilities.
1955,
cars
at
Express
completed
arrange-
^nts with Seaboard and Western
Atlantic
ments
U.
S.
Far
and
East
traffic
rates
Airlines, a transline, through which express
ship¬
shipped between all points in the
cities in Europe,
Africa, the Middle and the
air
now
freight
can
on
one
through
were
be
waybill.
express
reduced
To
stimulate
foreign
channels, first class
late
in
the
year
by 25
export and import shipments between all U
rail
trade
express
to
50%
S
shipping
on
heights
over
is
Trust
and
in¬
Company,
assume
a
that the economy will
year
after
year,
an
upward movement.
it
year
of
must
It
never
have
unparalleled
always
somehow.
and
boom,
end,
Robert M. Hanes
;v;v
,
the
future
to spread the current
are
If
years.
and
climb to steep
we
unsound
practices,
-
Frequently
is
checked
and
even
business
in
the
enter
we
services
J.
new
prevailing
outlook. Certainly
with
that
confidence
a
it
and
or
a
stuffs,
other
1956
at
thousand
the
and
items
of
goods
country's
will
be
and one
We enter
necessity.
with
peace
the
world,
sense
we
The
for
quest
better
doing things, the search for new
products for home and industry and
agriculture,
science
abated
—
go
vigor.
it
to
appears
should be the equal
tries
of
likely
are
me that, generally speaking, 1956
of 1955, if not better. Some indus¬
held
to be
future outlook.
banking in 1956 presents
a
somewhat
bepause
of
shortages
Our company is handi¬
because of this shortage. Our backlog
of orders for freight cars is at the highest level in
many years and should assure a year cf satisfactory
now
and high employment in that part of our
When new types of passenger car equipment
operations.
have been
of railroad
evaluated, we anticipate a substantial revival
buying to replace many of the present obso¬
cars.
divisions
Line
buretors
subsidiaries
or
industry
has
All in
our
better,
(W-K-M)
electronic
our
face
company
(Shippers'
cars
sales
cf
valves
and
at record levels, and the
are
divisions is progressing favorably.
all, I look forward to
W.
a
good 1956.
HARNISCHFEGER
President, P &
,
been
never
related products
work of
of
Our fleet of tank
Corp.) is fully leased, the demand for car¬
(Carter Carburetor Corp.) by the automobile
I will be glad to
II
Harnischfeger Corporation
give
my views, as I see them. Some
predictions in the past have not been too good
and, in view of the fact hat the government is such a
of
my
big factor in influencing business, by
of its huge
reason
expenditures, the past history of the
average industry does not always ap¬
ply under prevailing circumstances.
The company has concluded
cessful
although
year,
our
have
been
many
companies, and the
somewhat
a
suc¬
earnings
lower
than
reason
for
•
this
has
been
that
during the
six months of the year
crane
of
industry
course,
to
a
was
off
first
the overhead
50%
considerable
which,
extent
reflects in the expansion of
generally; however,
which
of
expansion in 1956 gives
of tremendous physical growth
in production facilities. The expectation that the Federal
budget will be balanced gives further stability to the
back
materials, particularly steel.
set
business
Charles J. Hardy, Jr.
expanding role of
forward with un¬
the
all
con¬
year
ways
of
enter 1956
another
meetings.
Internally our horizons are expand¬
ing in almost every conceivable di¬
govern¬
of
re¬
gardless of the welter of words which
duty
of another year
The outlook for
for
The
settling new records while savings
doing the same. Meantime, our
national
population
is
increasing
unprecedentedly, thus creating new
markets for housing, clothing, food¬
a
The record high level of personal income
strong sustaining force. The backlog of con¬
for
demand
satisfied.
in most lines are working at or
employment is at or near the all-time
take-home
pay
is
average
tions
good business.
struction contracts
the
year,
facilities
capacity,
analyze constantly the busi¬
picture, to point out any weak¬
nesses
or
dangers which should be
overcome, and to work unceasingly
these conditions is
HARDY, JR.
from
far
seems
reversed
Therefore, it is
leaders
1956.
in
for the maintenance of conditions which
experience has
proved are sound and essential for a strong economy.
assurance
to
confidence.
ness
a
look
both confi¬
untoward incident jolts the economy and
our
ment to
be
.
of
skidding precipitously and dangerous¬
some¬
unexpected development
an
un¬
We
will.
never
of
will
we
inflation
of
equally good prospects.
all-time
of conditions.
high
well-being
.
attitude
can
destruc¬
is a powerful machine. There is plenty
in the tank.
We can travel far and at a good
gas
Car
registering
by
of
;v
an
we
period of
a
means
wnen some
earnings
life
of
boom
One
the
infla¬
to
or more
to
the risk of
run
return
a
and
must not become ovtr-optimistic.
keep our business structure and our
sound condition. Caution and restraint are
a
by
Other
fidence in the business
Railway
prosperity
HANES
booms
time
a
redesigned express terminals and
to the turn
as
way
barometers
but
added
this year.
continues to be
'
tremendously important if
lete
M.
Bank
seen
with
early
the doubt
American
has—and
ve¬
operations.
express
an additional 500 refrigerator
million was announced
$10
the
maintain,
spent for 500
were
or
To
we
work
in
nation
with
While
be
dangerous
t.ie
1956
caution.
capped right
thoughtful observers is whether
the prosperity achieved in 1955 can
be
made
enduring.
Certainly we
During 1955
trucks, costing $10 million, were
which
more
of
„
assurance,
must
Thus
many
years.
cars
mar-
highs as we enter a new year, fair weather for business
would appear to lie ahead,at least for the first half of
1956.
The question which has been raised in the minds of
equipment will be
six
Another $10 million
the
materials
During
no
refrigerator rail
to
Purchas^ of
Modern
of
than
more
in
broken
replaced.
replacement policy
in
total
fleet
express
have been
will
vehicle
a
entire
seller's
a
the two unknown factors that
are
business
Railway Express is engaged in a $70 million "Investment in Progress"
streamlining program. By the end of
1960
of
Winston-Salem, N. C.
most
welfare
and
economy
J
-
anybody's part to make it effec¬
on
Wachovia
for
era
an
them
whole economy, and it won't take
cannot
that
to
of
policy that is gaining favor
a
ROBERT
With
monetary policies.
Thev result would
then face
us
rection.
back
most
creasing, and, if this continues, the hopes that prosperity
will stay with us during 1956 should be fulfilled.
uses.
indicate
and
a recurrence
threat of hostilities and
adequate nationwide highway system
and
is
our
sacrifice
President,
and
emanate from international
better learn to live with it, as it
of life and there doesn't appear
live"
are
mercial
for
are
expected to accelerate the
Railway Express services throughout 1956.
of
use
let
political fortunes
But
and
of
station
will influence the outlook for the future.
tained rise in population and result¬
f
gasoline
tive.
buying will continue
during the foreseeable
high
and
much of
production
consumer
period
J?
belief
our
in
way
possibility of
again throughout
available transportation services.
is
our
competition,
ket in the immediate future.
traffic moving from the factories
and farms to the
markets via all
It
free
that they had
to be much
sustained large volumes
of
and
of
is the order of
This
in
are
on
tie part of the integrated
growing desire to cooperate. It is hoped
understanding
attempts to redirect
many
fiscal
.of its people.
high,
Harper
condi¬
getting
strong and dynamic national
High rates of production and
the
to
near
that this will tend to restore mutual confidence.
Petroleum marketers are getting
leaders
continued
a
during
economy
with
accord
seasoned
tive
productive
on,
warranted.
or
there
a
hear
Nothing could be
As
indications
are
companies of
in
are
decades.
two
and
relations, which was manifested by strong
against suppliers and a desire to find some
There
President, Railway Express Agency
expressed
in
tion.
number of
a
to retaliate on the part of both
operators and petroleum distributors.
HAMMELL
too
election year.
and
CHARLES
way
A.
pattern
Chairman, ACF Industries, Incorporated
beneficial.
one
this
adopt the policies that will be advocated would mean, in
cases, the removal of the safeguards which have
given us in the past three years the most stable dollar
watchword
resentment
At
as they work
Treasury authorities
follow
to
most
wars
experimenting with
are
an
see
surges
Nothing has yet developed
suppliers
endeavor
speed, provided we drive with caution and safety—which
maintaining the policies and conditions which
furnish soundness and stability. Caution should be the
if any legislation for
possible
was
situation
money
inflation.
of
government
reverse
of
sections of the U. S. A. Congressional
committees held hearings to see if
and also to
at
Our economy
always
price
blazed up and down in
Further¬
continue
means
of
year
is
shall
undermines
been
sales, these
big boost.
a
Last
were
in
1956
We
ly
years.
annual volume of
give
the
on
forces
tne
doubt
no
since
we
for
not
likely
very
fiscal affairs, although t.iere will be increasing
pressure
from political sources to loosen up on the
money supply
We
Inc.
slacken off again, but, in a business
that can boast an ever increasing
prove
us
control
with
Co.,
will
levels, with interest rates higher than a
and with demand for credit strong. Undoubt¬
restraining hand
a
to
Let
HARPER
Harper
Thursday, January 19, 1956
edly, the Federal Reserve Board will continue to hold
$382 million.
it last forever.
see
created
during 1955—profits accruing to
our
stockholders should be larger due to the greater
efficiency and economies in operations that were not
**
truck
million
83
third
a
Consumption of gasoline was at a
high peak, and the first sustained
cold spell in excess of normal weatner
year.
year
airline,
handled
it
more
than
more
industry
tions
1956
railroad,
1955
of
via
December 1955 provided such a favorable
atmosphere
the marketing of petroleum products in the New
York City area that our segment of the oil
ulate
view
west¬
for
there
We
In
revenue
operates
of
JOHN
the consolidation of our manufacturing and as¬
sembly activities into three plants, all located in Indiana,
was completed during the Fall of 1955 and will also stim¬
earnings this
and
miles
President,
more,
our
rapid
Earnings
.
good
ago
dence
chinery is continually being required to implement new
ideas in packaging.
Lynch Corporation's backlog at the end of 1955 was
satisfactory in both the glass machinery and packaging
machinery divisions.
We entered the new year with certain advantages
that were not previously enjoyed. The establishment of
new cost and production control methods should have a
upon
the
Railway Express Agency has upward of 40,000 people
glass growth has been supported
by numerous products that are best
displayed in clear, glass containers.
In particular, baby foods and instant
coffees comp to mind as increasing
users of glass containers.
The foreign demand for glass ma¬
chinery has been an active part of
Lynch business in 1955 and tne for¬
Elvin E. Hallandcr
eign supply of dollars makes it ap¬
pear that overseas sales may even
be higher in 1956.
On the packaging side of the Lynch machinery sales,
we expect the revolution in packaging stimulated by the
growth in self-service selling to produce up to 10%
higher packaging machinery sales in 1956. Due to the
merchandising aspect of self-service packaging, this side
of our business is extremely volatile in that new ma¬
effect
in
picture.
present
year
will
greater labor force required
expansion of the nation.
ward
substantial
express.
William F. Harnden, founder of the industry in
1839,
expanded his express service to Europe in 1841.
His
U. S.—foreign shipping operations not only were
among
the earliest, but were instrumental in
bringing thousands
of immigrants to this
country from Great Britain and
Germany during the 1840's to supply the need for the
making bottles should reach 10% or
more
early operations of
mixed
.
.
year
W.
Harnlachfeger
our
we
industry
had a pickup
started in August and indica¬
are we
going to have a good
in the heavy industries because
backlog is greater and the ex¬
are
pansion program, particularly in the
industries, is apparently once more
automotive and steel
going ahead.
In
the
construction
industry
our
sales
were
Continued
on
substan-
page
84
'
Number 5460
Volume 183
The Commercial and Financial Chronicle
...
cial
'Continued jrom page 12
Free World's
Capital
The investor in American
panies has
a
known.
;
enterprising, equityminded U. S. investor fit into this
the
Does
I
picture?
absolutely
conthe long-term he
am
vinced that over
,
have
witnessed
we
tates
vestments
to
bililon.
needs of
meet the
his
take
a
each
danger
and
capital.
our
graph
make
include
of
over
pressing
the
American
ahead
anyway,
permanent
sovereignty
their natural wealth and
re¬
sources. In no case," declared the
limiting the amount of profits he text, "may a people be deprived of
withdraw, and regulations its own means of subsistence on the
governing the amount of capital grounds of other rights that may
he can transfer.
And finally, in be claimed
by other states." While
certain countries he is all too fre¬
quently apt to meet with the most
painful and unjust penalty of all
—outright expropriation.
of
In
these problems.
an
nations
First, there are the legal and
regulatory uncertainties. Ameri¬
the
era
are
first
sovereign
just beginning to feel
nationalistic
independence,
the
national
policy
and
self-determination
Americans
we
is
a
recognize
respect, the language of the
proposed draft-^—in what it specifi¬
when many
effects
of
expropriation
a
compen¬
was
earned
a
omitted
cally
tained
mentioning
—
con¬
implied endorsement by
an
U.
N.
foreign activities.
to write
me
urging
language of the final draft
crystal clear that the rights
individuals
cluding
everywhere — in¬
investors — must be re¬
spected.
The General Assembly is
scheduled
in
detail
to consider this matter
later
hope—and
urge — that
we
the
in
the
shall
U.
year.
continue
be
be
assured
of
prompt,
adequate
and effective compensation. Other¬
wise
foreign countries will limit
Continued
the General Assembly of the right
on
page
through service....
cautionary
one
overseas
must
sounded
par¬
—
ticularly where direct foreign in¬
vestments
that
lieve
at
present
National Bank
for
and
—
I will outline in
reasons
be¬
I
concerned.
are
moment
a
of Detroit wants to
serve you
in the Automotive Capital
sharp line must be drawn be¬
—a
the
tween
and the
experienced
who is
man
new
investor
-
STATEMENT
to share-
OF
CONDITION,
DECEMBER
1955
31,
*
ownership.
Stock
the
At
Exchange
are
we
deeply committed to the concept
of broadening ownership. We are
also
convinced that capitalism's
RESOURCES
.
greatest moments are still to come,
that
they will be ushered
Cash
and
in ''
in
v^'vest
their
of
seme
millions
to
our
v
,
_,
we
capitalism
strengthen
Real Estate
we
as
here
areas
must recognize, too,
we
Customers'
.
.
.
between
that
realities
the
shadow
a
prospect of profits.
$1,727,249,995
United States Government
87,483,535
Other Public Funds
65,553,342
*
Accrued Expenses and Other
$1,880,286,872
Liabilities
17,305,429
Acceptances and Letters of Credit
i
2,254,527
Capital Funds:
Common Stock
($10.00"
par
26,000,000
value)
74,000,000
Surplus
Undivided Profits
■M-y:
.
i
.
14,861,693
.
The
114,861,693
$2,014,708,521
i
over
And
can¬
dor dictates that the average
U. S.
investor—with whom
most
we are
2,254,527
Acceptances and Letters of Credit
Commercial, Bank and Savings
•r*
the
plague overseas in¬
throw
vestments
on
Deposits:
what the
would like it to be.
we
Liability
LIABILITIES
in
is
investment climate actually is and
what
7,021,494
12,524,007
$2,014,708,521
unhappy fact that there is a yawn¬
ing gap between opportunity and
fulfillment
619,825,667
Bank Premises
greatest.
But
495,159,222
124,666,445
we
elsewhere—particularly
where
the
potential
ing it
$
Mortgages
Accrued Income and Other Resources
be interested in strengthen¬
must
118,657,957
economy.
also convinced that
are
752,785,314
Loans and Discounts
Ten
years ago the prospect of "mass
investments" was a dream. Today,
we see it happening, and it places
a
special responsibility on
the
Exchange Community in its, efforts to broaden the ownership
base. That responsibility poses a
peculiar problem for us in the
field of foreign investments.
We are certainly aware of the
great opportunities abroad.
And
expanding
an
501,639,555
Loans:
great businesses, and to share the
rewards and risks of ownership
in
$
in-
in
money
Hand and Due from Other Banks
Other Securities
of
to
Americans
middle-income
on
United States Government Securities
invest-,
"mass
look
We
ments."
of
era
an
United States Government Securities carried at $183,920,849 in
,
the foregoing statement
are
pledged to
secure
public
deposits, including deposits of $22,347,008 of the Treasurer, State of Michigan, and for other purposes required by law.
concerned, and who has an enor¬
investment
potential,— be
mous
...
advised that at present foreign in¬
vestment fields are leaded with
The pitfalls are many,
warning signals haven't
been made clear enough. I should
like to outline the present dangers,,
and mention some prospects for
OF
BOARD
danger.
and
DIRECTORS
the
Howard C. Baldwin
Charles T. Fisher
Ralph T. McElvenny
Donald F.
Henry T. Bodman
Charles T. Fisher, Jr.
John N. McLucas
James B.
Valley
Webber, Jr.
Investments
The
U.
S.
abroad
often
dering
array
ties
firm
to
with
runs
of
comes
Ben R. Marsh
R. Perry
Shorts
who
into
a
looks
bewil¬
More friends because
we
help
more
people
legal
invest in
foreign
no
American
*
Ben E. Young
Shapero
S.
an
American
operations.
If
companies
bear
resemblance
to
counterparts
when
to full
NATIONAL
BANK
willing to surmount
the obstacles, he faces an equally
perplexing problem: the fact that
most
R. R. Williams
Nate S.
Abroad
investor
overseas
he is able and
most
W. Dean Robinson
B. E. Hutchinson
uncertain¬
complexities, unless he
and
chooses
John B. Ford
Harlow H. Curtice
Factors Inhibiting U.
Robert J. Bowman
Prentiss M. Brown
removing them.
their
it
disclosure of finan¬
OF
DETROIT
al¬
Member Federal
Deposit Insurance Corporation
to
recognize
that while a country may decide
its best interests lie along the na¬
tionalization route, investors must
Despite the present willingness
people to risk their
money
We
N.
of many of our
rote
to
Representative
Growi n
ing to venture, U. S. bankers and
brokers
have
stepped up
their
new
willing to export their
a
to
people will¬
a
barrier
new
years
Moreover,
83
that the
Rights, included a para¬
which said, "the right of
people to self-determination shall
If
then,
It prompted
Human
can
a
without
at
on
he is likely to run up against laws
data
look
draft
a
Here
warrant
necessary
for his investment decision.
Let's
Americans
committee, preparing
for the International Covenant
expropriation without
sation.
investor decides his opportunities
from
money
basic
tions
designed, it often
are
of
billion. And in
$261/2
$2.5
risk
a
tries most need.
reluctance
weaned
problem is by no means a dead or
dying issue. A couple of months
ago, for example, a United Na¬
.
to confuse anyone
mathematician. Discrimina¬
almost
1954
and
investments
those
1954
record
the
in
abroad
1946
between
to
having the
so
operations, and second by invest¬
ing directly in foreign securities.
Faced by American firms doing
foreign business, our private in¬
doubled
being
natural
subject to multiple
that are compli¬
enough
seems, to choke off the very flow
of venture capital foreign coun¬
open
He has
are
rates
tory tax laws
his
U. S. diet. And he naturally hesi¬
great a willingness to export our
capital — first by investing the
U.
S.
companies with overseas
;
and
against
Experienced investors have
already shown they are alert to
Europe's prosperity and to the
opportunities overseas. Not since
20's
but
increasingly been fed
healthy
does.
the
cated
diet of understandable statistics,
if he is informed at all.
dollars
exchange
accounting methods. As an over¬
seas investor he frequently finds
himself a poorly-informed rela¬
tion to the stockholder family—
'
L
can
com¬
periodic progress reports and
the world has never
as
wide¬
a
company
affairs, and other sound, equitable
stockholder relations policies.
<
} Needs in Next Five Yrs.
tries such
data, the seeking of
spread corporate vote in
(343)
\
85
C4
'
The Commercial and Financial Chronicle
(344)
"C~
...'r
'
.
' '
.
•
•
,
'
.
•
i
'
.
.
programmed application of electronic controls to the
productive process of every industry that can benefit
tially higher than a year ago and I believe this
tion industry, especially in the highway field,
further
way
1956. We are
least 10% in the construction industry and
of at
crease
applies, substantially, to every industry in which we
engaged, except in the Diesel Division, where we
this
are
considerable growth because a great many
of the trucking and common carrier lines are converting
from gasoline engines to diesels.
I am happy to say we
have an outstanding diesel engine to offer the trade.
expect to show
conditions, I am, person¬
concerned about the inflationary tenden¬
cies which have been brought about by ever-increasing
rates in wages, and sooner or later this will have to be
atomic power, electronics can in this
vistas that stagger the imagination. It is
one of the main reasons why
we at IT&T believe that
our national economy, now at its highest peak, is headed
for new heights. Our prosperity has solid foundations on
which to build hopes of still better days to come, and I
see no reason to doubt that we as a people will continue
to
up
open
witn
want to have a greater devaluation
we
of the dollar.
I
substantially;
drop
business generally could
also of the opinion that
am
first
business
amount of
in the consumers' line
all,
of
increasing
the
Also,
the part
of
come
made
be
will
will have
we
retire
some
to
and find some
balanced budget
a
expansion in inflation.
Based
on
San Francisco, Calif.
the increasing levels of California
of
should
1956
level.
measured
1947-49
higher
\
activity,
pared to
month
reaching
best
100
in
record
on
195
com¬
1947-49.
during
1955 were firm and tended
upward in the latter months of the
year.
Indications are that demand
for loans
will
ticularly
Heiiman
during
1956.
forever
.without
an
day of reckoning.
Although
a
near
miracle
achieved
by
the Washington
continue
the
strong, par¬
first part of
Bank
deposits, too, should remain at high levels — supported in
part by the continuing influx of people from other parts
of the country who are coming to California to live
■
ministration
ad¬
in
maintaining three
years of prosperity while holding the
dollar virtually stable, this accom¬
Henderson
Ernest
have
plishment would
more
spectacular
been even
it (Occurred
had
installment credit, of which automobile
financing is such an important part, is likely to experi¬
ence a reduced
rate of growth, if not an actual reduc¬
1956,
General
recent
The
volume.
in
tion
sales techniques of the industry are likely to bring
sure
I
predict that the major car manufacturers, heretofore
engaged in a fantastic production race between giants,
will as a result of the Congressional hearings, cut back
production to
the
at
of
of
rate
new
The
1955.
will
cars
installment
that
consequence,
climb
in keeping with normal de¬
more
inventories
cumulated
in
level
a
believe that the pressure on dealers to sell ac¬
mand. I
diminish, and,
will cease to
credit
"boost"
extra
from
ex¬
credit will have to be replaced by
purchasing power if 1956 is to maintain
the upward trend of 1955.
1
panding
consumer
other forms of
One possible source of added
Predictions
added
always hazardous, and in
are
a
all its old problems the new
and Communist imperialism, they
to change with little notice.
Nevertheless, businessmen cannot
sit on fences. We produce today what
we
must sell tomorrow. .The very
has
to
atomic age
nature of
our
of
are
subject
come
a
further rise in the stock
personal experience
other data available to us.
So
far
tional
concerns
as
the
tions
abroad
than
is
on
at
have
in
eral
crisis.
world
1955, there will be
We
will
are
remain
sure
strong
the
In
Wiliiam H. Harrison
an
unwarranted feel¬
Progress
stabilized
along
the
road
to
freer
world
international exchange will
in
trade
our
and
judgment
continue, for in most parts of the world signs point to
further improvement in industrial and commercial
con¬
ditions.
In
States,
we
also look forward with
fidence to the future. While not
of
moderate
that
the
will
continue
This is
short-term
long-term
ruling out the possibility
downward
believe
new
are
more
the
an
in Washington,
years
election year may impose
of age during World War II and is
our economy,
with
output already going into the civilian market. In
opinion, the best hope of continuing to increase the
once
more
reason
to be¬
our
nation—which is the secret of
will
prevent
any
serious
consumption,
even
sphere
of
set
once
political
thought,
realizing
to
be
Utopia,
that
motion usually swings too far,
in
I
apparent
trend which seemed
a
so
by sheer
leading
will
a
the
country
gradually
toward
reverse
itself
an
as
un¬
Nineteen
unexampled standard of, living—lies
in
the
well-
hundred
and
fift.y-six will see America's
further outward.
CONRAD
ultra-conservatism
that
this
trend
of
former
towards
emplified by organizations such
as
The
prosperity made
1956
Room
all
will
see
generations,
super-liberalism,
the ADA,
since
the
of the
end
Granted
freedom
conflicts
—
I
ex¬
will show
people to
know
see
the
As
improvements
the
in
our
principal in¬
larger hotel systems will in¬
operating
techniques
the larger hotel companies a
prosperous
to believe
conditions.
V
still
international
from
the desire of
places and get to
new
world
is
better
bound
to
far
Hilton
as
is concerned,
in
Hotels
last
history.
Corpora¬
year
was
the
in¬
materially, largely as a re¬
sult of our purchase of the Statler
properties late in 1954. Not only is
our
Earnings
creased
volume greater,
but we
effecting economies
Conrad
N. Hilton
are con¬
combining facilities to
purchasing of equipment
and supplies, by pooling executive talent, and by cutting
stantly
by
avoid duplication, by the mass
administrative overhead.
new 1,001 room Statler Hilton in Dallas
fitting commencement of what looks to
like another 12 months of growth and consolidation.
Opening of the
Our
gross
a
income and profit margin are both expected
upward trend as our new hotels come
to continue their
into
operation, as our extensive modernization program
completion, and as the acquisition of the Statler
chain
makes
impact.
more
Our international plans are
have
hotels
1956.
moving ahead. We already
in
Spain, Turkey, and Puerto Rico, and
buildings under construction in other countries.
The
Continental Hilton in Mexico City will open this year,
and
in
1957
we
will
open
the Acapulco Hilton in
Acapulco, Mexico, the Habana Hilton in Havana, Cuba,
and the Nile Hilton in Cairo, Egypt. Under an agreement
with the Canadian National Railways we will operate
the 1,217 room Queen Elizabeth Hotel in Montreal upon
its completion next year.
In 1958 we will open a hotel
in West Berlin.
Hotels will also be built in other major
cities of the world.
We
we
our
operate these
hotels
for the
abroad
same
reason
operate hotels in this country: to make money for
stockholders. It is good business, good hotel busi¬
both for the immediate future
ness,
While
it
may
and the long run.
be commonplace today to point out that
the world is getting smaller, hotelmen are perhaps more
than usually aware of the fact. The traveller who gets
to
know
us
in
Istanbul
more
turns
and
up
as
more
our
guest
Americans
find—a Hilton
hotel
in New
who
go
in which
to
stay.
International
a
closely to the rise and fall of gen¬
between
war—and
reason
these
make the hotelman's year a busy one.
prosperity for nearly all Americans
year.
business activity throughout the
country. Although
competition
of
na¬
hotels have
during 1956,
look for—and
very
every
year
climbing.
Convention bookings are
excellent, and the number of travel¬
lers and tourists is breaking records.
abroad
terest, is geared
best
is up for almost
than it has been
occupancy
hotels—higher
realities, rather than visionary dreams and prejudices,
will regain ascendancy This trend seems to me a
good
Industry, which represents
the
continuation
a
Similarly,
The Hotel
1955
recently enjoyed, and we have
that
York.
for continued
HILTON
unprecedented level of business activity and
tional
signs of weakening in 1956, and that practical and hard
during the coming
N.
President, Hilton Hotels Corp.
the
a trend
which could eventually do the
country as much damage
crease,
never
indiis-
be maintained
pendulum swings too far. I predict that exaggerated and
eral
The
more
Frontiers of Progress moving
hotels
help world trade and are indeed
They circulate West¬
thought through all countries and generate a stream
form of world trade themselves.
ern
came
industries.
other
nears
I believe there is every
visionary pressure towards extreme liberalism,
the
than'most
1956
chemical industry in America's expanding gross national
us
records may be less conspicuous than in 1955.
momentum
omen
upward.
per-capita output of
our
we
particularly true, I think, of the electronics in¬
dustry, which
iny
cycles,
trend of production and prosperity
today the fastest-growing segment of
half its
con¬
a
magnificent record of prosperity established
believe the strong trend towards liberalism
as
a
our
line
this month is
wisely administered
the
predict
the United
important
extremely prosperous level, and that monetary
workable
ing of security.
erst¬
standard
product.
v
during recent decades,
not
allow false promises to lure it into
an
pendulum
free
an
the point where
1920s'
activity.
economy,
though
gen¬
and
than in the
decline in the level of production and
they
no
represent
the New York Stock Exchange can again
despite the strain that
our
the
are now
trially useful and commercially attractive plastics and
promises further increases in the share of the
major influence in determining the course of
a
controls
businessman, and the feeling among
us
is
that, although stresses and
as
on
lieve that in 1956 business will
average
strains will continue in 1956
pace
fluctuations
and
and
interna¬
the
more
once
by the Administration during three
situation, we at IT&T are
closely in touch with condi¬
more
moderate
With the
function is to estimate
on
may
approaching, though fortunately at
more
become
of
more
resins
best
from
credit, could
business
the future, and our estimate must be
based
better
a
decline in the rate of install¬
liquid purchasing
proportion of the nation's total liquid wealth. We
an
for
ending search for stronger, more, versatile,
our
world that
ones
desire
the
fully expect that the chemical industry will con¬
its upward progress.
Continued growth in the
acceptance and use of synthetics and other chemical
products should enable the chemical industry to record
tion
a
once
income
We
power
that could substitute for
security dollars
President, International Telephone & Telegraph
Corporation
consumer's
American
1956
will
progress.
Beyond
mid-year the map is somewhat ob¬
scured
by uncertainty as to the development of the
credit picture, labor-management relationships, and the
extent of any decrease in automobile production and
residential housing activity.
hearings
Motors
market which, with its expanding reservoir of spendable
WILLIAM H. HARRISON
gov¬
new
ment
and work.
—
but little
tinue
was
perhaps more effectively than could have been accom¬
plished by legislation.
Banking reflects these high lev¬
els of general business. Interest rates
I. w.
1955
that of the
Index
businessman
higher standard of
point of view the
topography of
1956 runs
upward to an even higher contour,
but it is not quite clear at this time
how far along this higher contour
John A. Hill
through
about this curtailment in the growth of consumer credit,
exam¬
the
lends momentum,
business
in
by the Wells Fargo Bank
the
the
as
and
To¬
moving forward
provided by the con¬
equipment in
living. From
which focused the country's attention on the high pres¬
business
power
either
of
inflation.
is
while luxuries that
12
ultimate
In
business
a
period. November, for
was
with
at
is nearly double
Index,
ple,
be
„
California's
of increase
rate
stimu¬
lant in some respects akin to monetary inflation in its
effect on purchasing power.
prevailed throughout 1955, activity in the first.
half
credit
without benefit of expanding consumer credit,—a
HELLMAN
W.
I.
President, Wells Fargo Bank,
under
sumer
The
during the past
the
to
continue
not
to
way
business
or
continues to increase and along with
expanding in¬
stallment credit provided a powerful
impetus to business activity. How¬
ever,
like growing inventories,
it
represented a stimulus that could
will,
Unless, this is done, I believe
of the debt.
there will be further
which
All
cut Federal spending so
substantially
stimulus
boom
day's
possible similar readjust¬
a
consumer
effort
party to this type of politics and that an
a
artificial
the
defense
a
ernment
months.
not be¬
hope our Administration and Congress will
I
without
sense.
due
ment
government, 1956 being an election year!
our
achieved
Corporation of America
face
we
offset by expansion of spending policies on
This may be
definition,
were
it
down.
undoubtedly, have some tendency to slow business
industry made more, sold more and earned
than ever before—by almost any business
last year was a record year. These records
1955
Only two years ago we were beset by the pains of
inventory reduction, following the piling up of surpluses
in the boom year of 1953. This was "fat" which had
to be worked off in the 1954 "readjustment." In 1956
/
the rediscounting rate
of
in
HENDERSON
Sheraton
President,
and secondly because of the prob¬
agricultural implement people.
the
American
more
political problems
and
HILL
if any forward thrust.
farming situation which, of course, will affect
lems in the
good
ERNEST
great
of the
because
and
moderation
credit that is already being done
on
economic
national
approach
ally, somewhat
stabilized unless
JOHN A.
with
Combined
to the underlying
In regard
Thursday, January 19, 1956
.
President, Air Reduction Company, Inc.
the fruits of automation.
from
construc¬
will show
planning on an in¬
expansion in
.
|
82
Continued from page
.
of tourists and businessmen
across
Every hotelman believes he has
a
the face of the earth.
responsibility to help
light the world with the warmth and glow of hospitality,
and
our
hotels in distant countries stand
as
proof of
our
acceptance of that trust.
assure
Continued
on
page
86
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
tige and success, coupled with the
Needs in Next Five Years
drastically their chances of getting
between
expecting
removing ex¬
denying that
government imposes some
our own
rather
ers
and
in
obstacles,
massive
or
investment
are
good
indications
that
to
ments.
to
that
S.
ments
They
and
are
a
There
to
develop¬
this
faces—and
many
them
familiar to
are
witness
with
event
an
—
after
year
as
we
year
—
foreign business¬
consternation.
such
thou¬
or
ours
A
"We will listen to
American
an
give
than
we
credence
more
perience
and
will to
we
to
ex¬
you
say,
our
people."
own
German businessman
added,
coming to the point where
will have tc issue
statements
you
will
your
what
to
along
As this
do."
constitute
through
lines
comes
that
to pass it
a
major break¬
field of interna¬
the
in
financial
our
the
tional investment.
For
ther the movement of
abroad
will
to
seas
assist
achieve
I
10
do
United
nations
S.
is
nothing
insight such
higher living
standard, and will help them de¬
cide the kind of capitalism they
are
going to have. There is prob¬
ably no more important decision
for
if
the
free
other
our
owns
and
world
veloping
the
of
that has been whetted by the free
and
world's
from
prosperity.
There
of
are,
course,
tions to American
that
overseas
implica¬
capital moving
broader
are
purely economic matters.
than
The U.
signs,
are
an
acter—are
international
moving
disclosure
closer
not
believe
States
we
SHE E T
As
Today,
includes
that
in
$ 4,006,921
(at amortized cost)
the
Obligations
4,636,616
Municipal Bonds
Corporate Bonds and JNoles
17,750,736
2,910,097
(at market)
Preferred Stocks
BOARD
Mortgages
WALTER J.
Pledged
17,513,907
2.344.520
Total Marketable Securities
$54,072,700
Accounts Receivable (less reserve)
1,477,958
Sundry Loans and Investments
679.762
V:.
$2,157,720
cost)
Slocks of Associated Title Companies
Title Records and Indexes
5,500,000
630,625
$5,13(^625
1,373,687
(at cost),...
1,600,000
Total Assets
$69,311,650
FUNDS
Accounts and Taxes Payable
Accounts Payable
Accrued
$
Taxes Payable
Deposits
Indemnity Against Specific Title
as
Guarantee Risks
of
our
300
foreign
Trust and Escrow Cash Balances, Secured
by
Contingencies
4,932,603
For Market Fluctuation of Securities
7,185,197
Unrealized Appreciation of Stocks
3.612.495
$15,730,300
Capital Funds
Capital Stock
Surplus
10.000,000
CHAUNCEY B.
Total Liabilities and
in
to
escrow
the
amounts
qualify
cash
BORLAND
accounting methods and problems,
and we must recognize, also, that
the laws under which they operate
stocks
cordingly,
ments
we
But
our
the
Capital Funds
provided
Company
balances.
Ac¬
own.
have made adjust¬
meet
to
charters.
in
their
the
and
needs
area
of
full
disclosure, and in matters per¬
taining to the right to vote—safe¬
guards which provide U. S. in¬
vestors with the basic protection
they must have, the Exchange has
insisted
on
high,
democratic
of
bonds
and
from
different
are
standards.
I
am
asked frequently
how for¬
eign firms feel about our listing
Continued
on
page
87
RESOURCES
Cash and Due from Banks
Managing Owner. Borland
Properties
ALFRED
A.
$
651,653,605,07
United States Government Obligations...
862,980,808.40
Other Bonds and Securities...........
190,185,098.02
COWLES
Properties
Loans and Discounts.
1,010,833,075.37
CRAWFORD
EDWARD
A.
Stock in Federal Reserve Bank
6,000,000.00
CUDAHY
Customers'
Chairman
of the Board, The Cudahy
Packing Company
on
Acceptances.
1,290,631.41
FENTRESS, JR.
President, Allstate Insurance Company
8,323,616.38
Banking House
CALVIN
LAWRENCE P.
Liability
Income Accrued but Not Collected
JOHN F. CUNEO
President, The Cuneo Press, Inc.
7,800,000.00
$2,739,066,834.65
FISHER
Director, General Motors
CHARLES Y. FREEMAN
Chairman
LIABILITIES
of the Executive Committee
Company
Commonwealth Edison
WILLIAM
A.
HEWITT
$2,473,593,376.34
President, Deere 8C Company
Deposits
JOHN HOLMES
Chairman of Board
Swift 8C Company
Acceptances...........
Chairman
V.
Sears, Roebuck and Co.
ROBERT
17,421,307.19
18,105,362.41
Income Collected but Not Earned
H. MITCHELL
H. MORSE,
and Expenses.
Reserve for Contingencies
JAMES R. LEAVELL
WILLIAM
1,415,255.91
Reserve for Taxes, Interest,
HOUSER
of the Board
Capital Stock
(2,250.000 share*. Par value $}}'/,)
2,126,375.11
75,000,000.00
« •
Surplus.
JR.
125,000,000.00
President, Fairbanks, Morse & Co.
PETER
V.
Undivided Profits
MOULDER
26,405,157.69
Executive Vice President
International Harvester
H.
A.
$2,7.39,006,834^55
Company
SCANDRETT
FRANK
F.
TAYLOR
United States Government
Banker
HERMAN
and
foreign companies seek to
must, as a practical mat¬
ter, take into consideration their
we
Company of Chicago
5.81.5.863
$27,813.863
Assets
When
list
Railroad Executive, retired
12,000,000
Undivided Profits
pledged
a
financial market place
truly world-wide in char¬
acter.
roster"
.
Partner, Mitchell, Hutchins & Co.
19,433,825
..
Reserves
For Losses and
operations, but those o£ a
growing list of "blue chip" for¬
companies. The end result
eign
securi¬
"foreign
BIRDSALL
Banker
3,273,198
Pledged Securities
issues
of
large-scale
President
THEODORE
128,910
2.904.530
% 3,033,470
Cash
the
with
Corporation
Chicago Tide and Trust Building Corporation...
(less depreciation)
Other Real Estate
CAPITAL
only
firms
overseas
DECEMBER 31, 1955
Director, Pullman Incorporated
Other Assets
end
not
domestic
Real Estate
D.
Secure Trust
to
Si 9,858,42 7
LIABILITIES
reach
of
CHAMP CARRY
Balances
Obligations
Municipal Bonds
(at
who
is
looking
They will put within his
CUMMINGS
President, Pullman Incorporated
53.718
U. S. Government
Real Estate
help
average
J. Q. ADAMS
Cowles
State and
the
OF
7,338,856
(at amortized cost)
of
investor
foreign governments and corpora¬
and Trust
1,521,250
Stocks
and Escrow Cash
will
Continental Illinois National Bank
CARL A.
State and
Bonds
needs
think
We
are
of December 31, 1955
••••
First
The
encouraging
this process
logical step that springs
it: the increased listing on
Exchange
ties.
Exchange
DIRECTORS
Marketable Securities
Common
our
the
Chairman
Other
to
standards.
ASSETS
Stocks
char¬
New York Stock Exchange is ac¬
our
S.
be
in fact, that
foreign companies — particularly
tively
U.
abroad.
is
munism.
full
the
meet
will
have
of
the
foreign securities.
foreign listings
that
are
makes
more
de¬
we
strongest and most effective nonmilitary
weapon
against
Com¬
those
This
kind
shall
There
tions.
enterprise—
idea
broader, man-inof
ownership—
developed
the
a
the-streets
we
For
toward
move
concept of
toward
make.
to
countries
foreign securi¬
more widely-known, and will
give foreign firms better access to
our money markets—and eventu¬
ally
to our customers. New hori¬
zons
for
U.
S.
enterprise will
burst open, and will help satisfy,
on
a
sound basis, the American
appetite for foreign investments
ties
COMPANY
U. S. Government
over¬
a
Full disclosure
to make
serve
CHICAGO TITLE AND TRUST
Bonds
capital
our
NYSE Encouraging Foreign Firms
to Meet Disclosure Standards
will
especially
determined to export our particu¬
lar brand of capitalism.
But if
that happens of its own accord it
is all to the good. And our pres¬
than
the
visits provide into the
differences
Cash
of for¬
increase fur¬
to
us
aid
Foreign Firms Want Access to
U. S. Markets
B A LAN C E
com¬
businessman," a Belgian executive
told me not long ago.
"We will
pro¬
broaden
to
public
our
built with the
was
Mars.
as
of
opportunity to visit some
foreign countries. To the U.
stranger
owners
here
us.
the
there
of
shareownership is, to most foreign
executives, as alien and distant
In the last two
years I have had
businessman
instead
hundreds
would fill many
men
gram
all
happened
stockholders
by
of
sands
unwill¬
not
woos
attended
ingness to bare corporate secrets.
Capitalism throughout the world
has
has
to
panies.
are
is
more
basic
"we
it
And
become
the
running from them. The sight of
one
of our stockholder meetings,
barrier,
however, than the simple
for
a
cealing them, and most important,
should be encouraged.
true barometer of the
more
reversed.
And
that fights for markets in¬
sharing them, that reports
earnings and sales instead of con¬
of "full disclosure."
is
the nation's leading market place
and
more
the
stead of
major obstacle I mentioned earlier
area
success,
tive,
investment climate abroad. As the
climate improves it's
logical to
expect improvement in a second
—the
say
here
since the turn of the century. He
doesn't understand, for example,
a system that is
fiercely competi¬
that
welcome
own
abroad.
what
grasp
simplify
are
our
fully understand
still operating on
businessman
corporations.
These
with
fact, not criticism, to say that our
foreign counterpart still doesn't
exchange
rates and speed the
two-way flow
of
funds.
Foreign governments
are
reappraising their tax laws
and
offering new incentives to
U.
don't
pressures
encourage U. S. invest¬
New techniques are being
developed
own
fact, not criticism, to
filled
we
progress is being made overseas.
McGraw-Hill
reports
some
35
countries have passed or proposed
laws
is
It
barri¬
through the capital gains levy
the double tax on
dividends,
there
our
brands of capitalism.
without
millennium
and
foreign
"Enterprise"
may go under the same generic
name, but often
the similarities
are slight.
American capital.
isting
eign money. This pattern has been
for U. S.
dollars, is prompt¬
foreign busi¬
nessmen to take a
long look at the
full disclosure
principles that have
ing
Free World's Capital
the
S.
need
Continued from page 83
Fortunately,
85
(345)
by
to
statutes
do
are
WALDECK
Banker
pledged
to secure
purposes as
obligations carried
public and
required
trust
or
at
#215,415,993.58
deposits and for other
permitted by law
V"$'W34t.o.aa
of
business
Illinois
and
to
have
been
secure
trust
;/
M-
LOCK
BOX
NEW YORK CORRESPONDENTS
•
H, CHICAGO
90, ILLINOIS
E. J. McGRATH AND L. A. ANDERSON
Mmbtr Federal Deposit Insurance Corporation
•
14
WALL STREET
The Commercial and Financial Chronicle
86
.
.
Thursday, January 19, 1956
.
(346)
Continued
from
carrying such capacity is expensive, some
very
are
margin of this
The
costs of steel and other
salaries
and
indications at this
production through court interpretation of the Act. The
Harris-Fulbright bill for protection of-the natural gas
corsumer through assurance of adequate supplies, now
We
the United States and Can¬
have in the vicinity of 300 such
bottlers and are looking for a substantial increase.
We are also optimistic about the growth of our busi¬
we
through the sale of
syrup, and our most recent inno¬
vation of the sale of Hires in the 12-ounce can ready for
consumption. This latter item in the short time which it
has been available for the armed forces has been well
to
ness
the
forces
armed
overseas
finished fountain
received, and thus far is making
Oil Company
Standard
Sales
products.
condition
I
looked
have
forward
economy
a
of this country
good level.
vance
In
America,
Western Europe, Latin
and other parts of the
was
considerably above fore¬
at the beginning of the
In the non-Communist coun¬
States, de¬
mand showed a rise of better than
11%.
dicate
As
in the Free World, our forecasts in¬
Elsewhere
States.
outside the United
1956, the industry can expect to be called on
another increase of about 4% in the United
In
meet
to
tries
sign of the confidence felt by the Jersey Standard
management in the business future, we need only men¬
a
tion the record
high 1956 plans of the company's operat¬
ing affiliates for capital investments and other expendi¬
in
tures
the
oil.
for
search
These
are
estimated
to
aggregate approximately $1,100,000,000 for consolidated
companies, plus another $100,000,000 for Jersey Stand¬
ard's share
in non-consolidated
companies in which
Jersey Standard holds
an
interest of 50%
or
the Western Hemisphere, where the Jersey Standard
organization does
about two-thirds of its business. Of
this, $475,000,000 will be invested in the United States.
The year ahead will be characterized by further in¬
tense competition in the industry.
Exploration for and
development of new crude reserves has proceeded vigor¬
ously. New refining and transportation facilities have
been
built
zations
in
have
parts
many
entered
of the
world.
New
organi¬
the
Jay
ready
In
to
five
the
For example, the potentialities of radioactive substances
times
and
new
electric
our
realizable
hope
not
poverty,
government and industrial laboratories. And
on
if
a
the
Electric
Se»wolf, which
We
have
processing are being actively
investigated. Some of the problems involved in drilling
in substantial depths of water in the offshore areas are
the
being
on
was
started
Division
at
Groton,
aid
an
in
petroleum
overcome, although these operations continue
be much more expensive than those on land.
In
a
trend
number of
nations
abroad
the
year
has
seen
to
There
legislation to stimulate the investment of
private capital in oil operations. This reflects greater
understanding of the fact that private companies and
governments
can
effect
a
ship for oil development.
mutually beneficial relation¬
In
a
the
economic
facts
affecting
few
or
countries,
on
the
failure to recognize
international
investment
for
A-subs
was
on
third
a
laid
A-sub,
the
current
we are
building
a
our
Convair
Division
shut
also
moving
ahead
on
the
Convair in
however,
may
be
offset
time
in
because
for
above,
in
the
life
inventories
are
still
sales.
a leveling off or
develop before the
out
lines
most
relation to
in
of
a
decline in general business
is over, gains may be
year
insurance
business.
As
pointed
personal income has tended to
periods of moderately lower business.
Moreover, the number of adults reaching 21 has now
passed the low point and will start again to increase.
Marriages and the establishment of new households this
increase
disposable
even
in
should at least equal 1955, while the birth rate will
at a high level.
Life insurance in force and
income of life insurance companies has shown a gain in
year
continue
every year s.mce
1933, and assets of life companies have
increased
over
yearly
a
much longer period.
There is
to expect further gains this year.
Also in 1956 life insurance companies should continue
to show favorable results in their investment
opera¬
every reason
jet
interest
(before Federal income
tions.
The
taxes)
bomber.
At
factors,
segments
looked
we
Skate,
supersonic
a
other
Even if
Fort
B-58
the economic horizon.
These
in
should
Worth, work
is continuing on a developmental activity which will, we
expect, ultimately lead to an atomic aircraft and we
are
on
levels.
strength
moderate
of the Defense De¬
in
clouds
been sharing
for
conventional submarine
plant
some
the economy, espe¬
cially industrial and public construction.
Surveys of business plans for new plant and equip¬
ment expenditures indicate substantial gains over 1955.
Construction of schools, highways and other public proj¬
ects will continue to expand, and pressures are building
un
for increases in Federal Government spending.
In¬
ventory accumulation by business is likely to continue
for# the U, S. Navy and two for the Peruvian Navy.
At
are
has not
by
the
program
level where its further growth must be at
Some industries are beginning to bump
earlier
the second atomic submarine, the
launched on July 21, 1955.
work
which
under the
addition,
a
rate.
Agri¬
in the general prosperity.
Secondly, it is probable that automobile production, one
of the prime stimulants of the 1955 boom, cannot con¬
tinue at last year's feverish pace. Residential construc¬
tion, another major stimulant, has declined from the
high level reached during the first half of 1955 and will
probably continue in the months ahead below year-
day the Seawolf was
launched, and have been designated to build two more
In
a
toward
other hand, excessive nationalism
keel
slower
culture
partment.
as
widespread
overtime work,
inflationary spiral.
It is only tne depressed farm
prices which have tnus far kept the over-ail price level
moving upward.
American
Conn.,
mini¬
"by
Irom
Dynamics will, I hope, continue
Boat
irreducible
of the
1955.
finishing work
the
from
Stimulated
against the ceilings of their capacity, and materials
shortages and bottlenecks are developing in certain
lines.
This situation; together with the fact that some
wage increases have been greater than the anticipated
gains in productivity, highlights the danger of a renewal
progress.
At
reached
now
sea
famine
we
exceeding that of any pre¬
and with unemployment
year
far
nessmen is currently high.
The pace of business expansiorv-however, will be slower and more irregular this
year than in
1955. The business boom last year was
sparked by sharp gains in consumer credit, which has
exploit the tremendous potentials for constructive good
that now have opened out before us, we shall, I fear,
be compelled to shut the doors of our empty university,
fast pace of
no
ex¬
increases and
weekly earnings have been
recording new highs, and wage con¬
tracts have been negotiated which
will assure the continuance of high
F. W. Huobell
.hourly rates.
A reduction in per¬
sonal income taxes is probable in this election year,
which would further add to disposable personal income.
Confidence on the part of both consumers and busi¬
aerodynamic race to our rivals, but our whole economy
will change from a dynamic to a static state.
If we do not have enough competent personnel to
Activities at General
is
an
We are going into the new
with the number of employed
wage
shortage of nuclear, chemical and physical scientists and
engineers, we shall not merely lose the atomic and
shall have shut the doors
business.
There
1956 to be
expect
average
powerfully negative. So important is this fact, how¬
we
to
mum.
and ih tech¬
revolutionizing
ending
for
general
persons,
the possibility of cheap
cost,
year
vious
ever, that it may be the key to our ultimate success or
failure as a world power. Unless we solve our present
at the
has shown a gain
since 1938, including
the years of moderate decline
taxes)
every
year
of revolu¬
There is only one aspect of the atomic revolution that
doors,
is created by increasing per¬
growing population. Disposable personal income (personal income less
ception.
year
and disease.
are
of
a
in
power
felt
Company
insurance
of
reason
morale, a change of economic base, and a revision of
social, economic and historical perspectives. In under¬
developed nations, atomic power is now presenting a
Rivalry has spurred still greater research activity and
has led to further advances in petroleum technology.
share
sale
personal
electric power from the atom is effecting a revolution in
these
substantial
the
sonal income and
areas
of high-cost conventional
power
England, and in international areas, such
Japan where the cost of electric power is from two
industry and are striving for
market, while longer estab¬
lished companies are making strong efforts to hold and
increase their market positions. The ultimate beneficiary
of all this competition is the consumer.
a
for
New
as
Insurance
Moines, Iowa
It is expected that 1956 will be another excellent year
life insurance business. Favorable environment
and air power. The impact of
these
atomic
developments is al¬
industrially and commercially.
Hopkins
being
Life
Des
for the
domestic
such
is
less.
The total estimated expenditures are about 20% above
similar figures for 1955. About $950,000,000 will be spent
in
John
as
7%.
gain of around
a
Iowa,
even
in nuclear energy
already
are
year.
Eugene Holman
our com¬
believe, to have a cooling in¬
on
the possibility of
any
large-scale, "hot" atomic war.
Rapid
and
hitherto
unexpected
technological advances in the de¬
velopment of htomic aircraft "and in
atomic submarines and surfacfe ships
approximately 3% growth in
in the United States
made
casts
F. W. IIUBBELL
Equilable
cf
I
oil consumption
in 1955
f
President,
fluence
the production of goods and
services is proceeding at a high rate.
world,
The
a
at
ventional methods.
nology "around the atom."
Militarily, the deterrent.effect of
a deliverable H-bomb will continue,
Abroad the outlook is also encour¬
aging.
as
plants
produc¬
tube, an electronic device which
displays computer data 1,000 times faster than by con¬
My reasons for viewing .the com¬
ing years with optimism are based
on
an expectation
of continued ad¬
United States, and it appears
the
1956
with
Convair the responsibility for
tionary but constructive change in domestic and inter¬
national affairs—in industry, in science, in medicine and
in relations between nations.
country has been reflected in
operations of the petroleum industry
mat
from
over
HOPKINS
to
four-.
tion of the Charactron
Dynamics Corporation
General
of the
will continue at
taken
Chairman of the Board and President
(New Jersey)
Division
in
JAY
the
of
continuing its production of the
jet fighters and the T-33 Silver
Stromberg-Carlson
ing conditions.
entering the new year in a sound condition which will
enable it to meet further increases in demand for its
in the
Sabre
affiliates are showing a satisfactory
increasingly competitive market¬
by Jersey's
JOHN
The generally prosperous
also
is
F-86
increase in the face of
good year in 1955 and is
oil industry enjoyed a
The
our
major portion of money required for expansion.
vide the
version
Rochester and Los Angeles will continue its production
communications and electronics equipment and has
pany's earnings will continue at the high level needed
to give adequate return to the stockholders and to pro¬
IIOLMAN
EUGENE
Chairman,
excellent progress.
that
reconnaissance
of
and our own
national security.
They have highlighted, too, the_ im¬
portance of reasonable restraint and good business
judgment on the part of oil-importing companies.
The current favorable outlook indicates
Clinic, Albuquerque, N. M.
jet trainers.
The—
ports in the Free World economic health
licensed bottlers throughout
our
Star
undertaken during ibe year by
the Office of Defense Mobilization, have brought about
wider realization of the vital part played by these im¬
Possibily the biggest factor in our expansion program
be an all-out concentrated effort to acquire new
maritime
Canadair
htuaies of oil imports,
will
Currently
important to
development .so
gas
Institute of Nuclear Medicine and Biol¬
Energy of Canada Ltd. (an agency of the Cana¬
Government). Canadair is also continuing its work
Mark-VI
nation.
last year.
ada.
the
for the
aircraft.
pending in Congress, would clear up the confusion now
hampering
Convair Divi¬
the
and
Division
Bristol Brittania and is making a joint study
with Bristol Aeroplane of' England and General Dyna¬
mics'
Convair
Division of
a
long-range commercial
hope that the coming year will bring favorable
action on legislation to clarify the Natural Gas Act and
thus to remove handicaps recently nut on natural gas
primarily because of a greatly ex¬
m
panded advertising and merchandis¬
p. w. Hires
ing
budget,
increased
selling
organization, and more and better
tools for this organization to use. More specifically, we
anticipate our budgets for advertising and merchandising
will be up approximately 15% again this year over
Atomic
motored
least for the immediate future.
tinue at
General
the
on
pressure on prices,
that this stability will con¬
favorable weather.
From the point of view of Hires
alone, we also look lor a good year,
upon
Convair-
in
Atomic
dian
upward
time are
airlines. They
overseas
Canadair Limited, our Canadian subsidiary in Mont¬
real, has been awarded a contract to design a "swim¬
ming-pool" type reactor
at
Chalk
River,
Out.,
by
1955. Although further rises in
materials as well as high wages
exerting
are
also
is
ogy at the Lovelace
a cushion of extra capacity for emergencies.
prices in general and crude oil particularly have
Gil
and
S.
are
reactor
portance of
remained stable during
U.
currently working jointly on the development
and ultimate construction of a medical research nuclear
industry to meet the extraordinary demands that fol¬
lowed.
One has only to recall the outbreak of war in
Korea or the events in Iran in 1951 to realize the im¬
tainers, new methods of dispensing
soft drinks,
such as the pre-mix
system currently being introduced
by
many
parent companies,
and
greatly
increased
advertising ex¬
penditures by most parent compa¬
nies, it looks as though all signs
point to a big year. Of course, to
a
certain extent we are dependent
Diego
sion
desirable. For example, the spare
productivity of about 900,000 barrels daily with which
the United States entered World War II enabled the
size con¬
the advent of new
with
production on the F-102A allweather supersonic jet interceptor for the Air Force ar.d
the Convair plant at Pomona
is heavily engaged in
guided missile production.
^ V %'v V-'/ •;
<
kind is necessary and
industry in general has made a
With
San
position in respect to crude oil reserves, refining capac¬
and oil-handiing facilities. Some of this capacity
is at times in excess of immediate needs.
Although
prospects for our industry on a
year
these
replace the famous 340 Convair-Liner model.
ity,
good. The beverage
great many strides over
the recent years as is evidenced by the tremendous
growth of this billion dollar industry.
this
basis
national
of
67
for
resources
1958 finds the industry in a strong
The beginning of
Charles E. Hires Company
President, The
On the whole I think
of oil
development
the
obstruct
to
which could benefit the people.
HIRES
W.
P.
continue
84
page
earned by U. S. life insurance companies on in-
net
rate
of
'
San
Diego,
our
first 440 Metropolitan
airliner has been completed and we now have contracts
Continued
on
page
88
Volume 183
Number 5460
...
The Commercial and Financial Chronicle
Continued from page 85
the local
communities, let it take
centralization
out
Free World's Capital Needs in Next Five Years
in
Federal
less
working
a
hardship,
policy
our
I
provides real benefits in the form
wider U. S.
ownership.
believe
cleared
the
for
corporate data.
states^will take care ct
problems. The discre-
Consider, for example, Rhodesian
Selection
J
men
Trust, Ltd. This impor-
are
been
of
Foreign businessof
aware
the
material available to
wealth
of
investors in
iC?n ?°PJ?er Producer was this country. If in the long run
^.trading, last July, In they are to tap our capital mar-
the
past
million
six
months
American
two
some
shares
of
kets
the
the
number
of
U.
United
share-
S.
I
States
likely to break
effort to
down
list,
believe the
the
door
impetus from
trend
investor with full
formation. On the other hand,
the.
to
full
its
Treat est
dis-
uia_
of
success
our
form of capitalism. Until the
pattern is more marked however,
own
I
in
would
U.
to furnish the
or
American
encan
cannot
investors.
increased "moreThan" six- closured receiving1
holders
fold to 5,000.
This one case history does
not,
of course, blind us to the
problem
ahead. Foreign companies are not
an
they
afford to offer less information to
Company's stock changed hands,
and
effectively,
S.
still
advise
which
easily
disclosure
the
leave
us
own
ttrhinn
maxim
has
way
fuller
of
Let
average
investor to look to domestic
rlictrihulA
/inn
can
assess
nnv»
abate
no
can
distribute
or
as
collect.
or
those who spend
have to raise it.
money
to
Exchange.
our
beginning, the
i
^as
count immediately to those who
Pa^ the taxes,
If Federal collections seem less
Painful, they are likewise more
-
American
to
-
'
.
the
*
House
against
Fedel.al
«■-
control
Lu
cation.
of
UU1
people
believe
p
.
We
niggardly with
made
to
should
our
drive
our
Uncle
not
school
school
Sam.
cial
who
requested
formation
ceived
years
corporate
railroad and
a
inre-
statements
laws, and offer U. S. corporations
greater incentives to develop for-
reply: "The Company
reports and publishes
no
have
and
—
not
perof funds,
free
convertibility
recognize the sanctity of private
property, repeal discriminatory tax
ago
certain
of
this
makes
85
some
mit
done
History, I think, is
It
five years." Yes, much shall have
to be done in the way of
slow,
rail at trade,
education
before
foreign firms understand
cept
But
I
in
united
economic
it;
calls
the
of
way
free
behind
a
gcal—however difficult
to achieve. That goal
who
And he
for
barriers
the U. S. needs
raw
opportunities
im-
friends
lous.
both
and
This
ourselves
is
the
who
20th
(trade)
peace
goals
our
not
it
merely financial,
is against
further
,
from
added,
are
pa.
.
and
waste."
Former'
Tigert,
sioner
of
U.
r.~u
u„
into
Education.
fK_t
ion
4.-
that
the
n
mnnov
maupr
that
a
^hnnld
Debt
per
is
a
staggerobligation.
capita
world."
was
are
His
name, of course,
Franklin—and we
Benjamin
We crowd the debt limit of
$285
Already
ment
oT
the
purpose
Called by any other
Govern-
tax
ought
be
to
that
revenues;
not
reversed
in-
name, that's
for which the grants are
recommended »
Consider these
President
Continued
quotations from
—
on
One-third cf the states have al¬
most
obligation
no
bonds
out¬
standing.
,
The
term
states can
lower
interest
cf
.
„
dispose of l°ng-
general obligation
Federal
in
..
.
rates
bonds at
than
can
the
Government.
June
30,
governments
Federal
1954, state and
had
invested
securities
total
a
of
*
•
ill!
*
KENNAMETAL
FIRST to revolutionize
steel
cutting operations
FIRST
since
ever
whole
concept of machining steel
new
years
carbide
tungsten
called
high-Brinell stock from three to
for
Federal
Government
—
does
control them.
Virginia
Oklahoma
Rhode Island
Vermont
1° richest states asking
And
of
the
10
three of them.
and
South
makmg
dicate
such
potential;
measured
in
terms
progress
in¬
diffifrom
Mississippi says, "what we need
|s ro^ a subsidy—it's an educa-
has
increased
It's
which
lost
same
intriguing
to
1940
389,000
10 years,
know
that
Massachusetts
income,
Will
pardon
you
If
.increase of 24%
all
the
a
Utah
that
raise
an
local
same
makes
additional
$5
in-
refer¬
in
states
union will make the
fort
has
the
tax ef-
we
can
billion
year—and not have to lean
on
a
Parts
whole series of man-made miracle metals.
made
of
today's tungsten-base carbide
compositions have
to
even
shock.
tacular results
as
metal working,
greater strength
They
achieving
are
tools, dies and
wear
and
spec¬
parts in
manufacturing and mining
operations.
Kentanium,*
bide,
a
super-hard, titanium-base
highly resistant to heat
and
car¬
corrosion,
the
operations.
"
Other Kennametal compositions are created
for
specific applications where great strength,
hardness, resistance to heat, impact, abrasion,
corrosion
are
or
combination of these properties
any
required.
If yours is a problem which may be solved
any
tell
one or a
us
about it.
Adapting Kennametal to the
specific needs of industry is
our
by
combination of these properties,
an
essential phase of
business. Write: Kennametal Inc., Latrobe,
Pennsylvania.
* Registered Trademark
Federal Government.
The Lower 3rd
No Magic in Federal Treasury
The
Mississippi
rot
Alabama
Federal
Government
can-
Arkansas
No. Dakota
those
New Yoik
So. Dakota
and wealth
California
Tennessee
borders
Kentucky
Georgia
If
INDUSTRY
AND
"give" anything to the states
Connecticut
Illinois
was overcome.
industrial
which
Delaware
Jersey
shop automation
dropped. Maintenance
California,
its population 2 y2 million between
1940-1950 to share its income with
unless it first take's it away from
the people and the institutions of
New
.
today is pushing through thermal barriers which
fiave seriously limited improvement in many
Mississippi
Disposable Income 1952
Dist. of Columbia
.
tional and spiritual regeneration."
r's
equally
fantastic
to
ask
creased 114%.
capita income, the states look
Nevada
to
as
mastery of their
cutties.-As a good friend
in
like this:
The Upper 3rd
already
are
the
of
Machining costs
resistance
a
ence?
per
for help
Mississippi/Georgia
Carolina
soared.
grown a
"poorest" states,
not
Let's look at the states and their
.
long. Production
as
From this first Kennametal composition has
It's rather fantastic to have the
an
State's Disposable Income
times
machine
Virginia
Oregon
has enjoyed
.
many
Florida
Fed-
impose
they lasted
and downtime shrank. The greatest obstacle to
whereas since
The people of the states
their own debt limitations
times faster than tools made of steel
Louisiana
So. Carolina
Arkansas
before asking
a-
Kennametal.
West
<
people in those
assistance.
was
by tools made of
ago,
Kansas
vest some cf these funds in school
eral
89
'
Michigan
Washington
$13.7 billion. They might well in-
buildings
R00se-
page
—
'
and
No. Carolina
from the other states.
Many states have large unused
borrowing capacity.
As
OMo
trend
creased.
local
.
takes in taxes three-fourths
all
ex-
control.
These tools cut
Massachusetts
Federal
left
he
out to prove him right.
Pennsvlvania
billion all'the time.
Fed-
state is not
ten
The Federal
of
distribution
eral funds within
armrn-
public
A Gise Against Federal Aid (0 Education
v
J.
Commis-
S.
?5Aat? that kmd °f money Wlth" a matter that Sh°uld bG
?cULSu®C^yi£g' TnT+i-Tn ^nWiHn* clusively to state officials, in view
\s 10
Ptit k <Tn,«nebt?
of the source of the funds and the
sintered
ing $1,697
(1950).
of
John
Dr.
"The Committee is of the opin¬
introduced, 17
Government.
you
nnrinrf
ro
Communism, "he-
introduce
15
cational needs than is the Federal
vmI
or
misappropriation
."
if he could look
in time to the
as
years
shall
the
century
page
have
funds
on aTheir
year
interference
and
must
Tnf
A
Continued
S.
.
another man
"he that can have
have what he will.
200
.
.
affairs the principles of primitive
Christianity
shall revolutionize
,
fabu-
are
Basically,
is
Dr.
U.
.
was
threat of world
our
„
made
There
can
across
capital, and
for
,
and
said,
tience
materials, the
free world needs U. S.
that it
see
principle of liberty, that
America, and destroyed
reached?
common
side,
our
said,
"we
but the historian cf
.
we
on
who
and kept peace.
Kow long before
sum-
world
peding the flow of capital, and vve
shall
achieve it simply
because
the
settled
removing
be
may
it
feudalism
believe, by
that
mary,
are
the
was
ac-
standards.
our
Emerson
was
the world will
more
and
Aid
eral
Fed-
control."
Present,
eign properties,
no
anything of the kind for the last
patient
But the argument against
Brownell,
"You must either have Federal
^
iS. Jhe.TlasTc traLnj exchange regulations,
story of the Stock Exchange offi-
M.
Commissioner of Education.
year
m
+v
Federal
some
S.
control
ConeresTwH]°
we
to
Let's have no mistaken idea
about the ultimate aim of__the
P
same
now
edu-
U1
beUevethat
problems that
the
-
those needs have been
administrators
*
the education within states under
"was
Conference
c„
America.
no
or
be
J?,,.
of
little
be
°
and
was
prevailing sentiment in the
cr..vtniv
so
to
cational bureaucrats out of Wash-
to the needs of their local schools
be
is
control
accompanying
Federal aid, what right have we
to expect a major improvement of
•
local
There
in education. They will respond
once
our
.
left
governments.
White
The
with
leadership that they
have? Thus, if Federal aid is
bring about better schools, it
seems
apparent that there must
monguto aca §rl;al saieguara xo nave xo a"
dangerous.
lived
have
"If there
Federal
school
common
.
been
state
The
men
on
the
who
men
problem:
no
It is so easy to be generous with
perfectly clear. There is challenge
in this thought for the business-
I believe, finally, we must look
toward
the
day
when
foreign
governments
will remove
frus-
the
ington.
the
those listed
inour
requirements did not spring
up overnight, nor were they accepted immediately by domestic
in
power
And m Te process can reduce wisdom in that provision. The
bureaucratic costs of admmistra- best safeguard against Bureauct*on- 14 }s bounder Business for racy jn education is to keep edu-
companies with foreign operations
and foreign companies similar to
own
of
Government.
The Federal Constitution makes
mention of education. From
+
+ iam
application of Franklin's
about'"A" and "B."
taxes.
S°??e+]?f t e+mon?n jn,the state|
the
and
their
requirements.
Well,
those
that
have met them find that
far from
87
(347)
states.
All "taxable
are
of the
the
income
located within the
48
states.
Federal
Government
really wants to help the states and
KENNAMETAL
...
(PaAtheM
trv
(PtoqWAA
gg
(348)
The Commercial and Financial Chronicle
Continued
from
86
page
.vested funds reached
AUGUST
.
in the following year,
In
The nation's mutual
1954, with further improvement in 1955.
savings banks will again help to
supply of savings required to fi¬
nance home building this year, as
they did in 1955.
Outstanding mortgage Joans of mutual savings banks
registered a record increase of $2.5
of return.
E.
To
sales in 1956 will
United States Rubber Co. expects its
the billion dollar mark for the first time in its his¬
pass
lion
dollars
will
set
record.
a
We
and truck tires.
in plas¬
tics, plastic products, chemicals and
synthetic rubber. We look for contin¬
ued growth in footwear, foam rub¬
ber, industrial rubber goods, textiles
and foreign business.
U.
S.
Rubber expects
to spend
about $36 million in new plants and
equipment in 1958, which is about
a
million
lion
is expanding
than
the
sales
and
rubber
record
for
$5Va
that
Humphreys, Jr.
the
industry in 1956V about the same as 1955. The gen¬
eral price level for rubber products increased slightly
will contribute to the expected dollar sales
increase although rubber consumption will remain about
equal to 1955.
The proportion of synthetic rubber used
latter half of next year.
About 60% of total rubber
plant production
con¬
markets
is
from
well
as
such
ex¬
could
abroad
next
as
also
helps
return
domestic.
European
ulus
Most
countries
This
exceed
.with only
compares
of
this
230,000 tons
U.
units
in
1956
S.
sales
will
higher in 1956 and should total about
be
51
million
Truckj| tire replacement sales will be lower
about 2%
Sales
at
of
and
about
domestic
industrial
rubber
products
economy
of
continue
of
over-all indus¬
MUd
brought
about
decline
a
in
this
have
more
canvas
shoes
for
sports
and
of
JOEL
wear
All
stainless, tool and other
alloy steels which prevailed throughout 1955
shows no
Vsigns of abhtemChii; Present indica¬
•
facilities
the
for
power
de¬
reactors.
at
are that utility
equipment buying
high rate in 1956 and the prospects
a
the
all,
than
1955
coming
for
also very promising.
are
year
should
companies
be
substantially
power in¬
serving the
and later.
N.
BAXTER
past
year
was
and
for
economic
barometers
suggest another year of
prosperity for American business in
legislative
scenes
1956.
extent
volume of highway construction ana
commercial building is scheduled.
This expansion
co¬
the
of
American
of
ment of
Included
were
new
a
and
automation, both of which as¬
higher standards of living and
the employment of larger amounts
of capital.
.<
sure
failure
N.
Baxter
Thus, the
banking is
Jackson
tunities.
credit
is obvious.
this
people.
by basic industries
by the rapid" develop¬
age of atomic energy
is augmented
Senate
or
expenditures
manufacturers and airlines. A heavy
a
leader¬
the
and
success
capital
budgeted by many indus¬
tries, including steel and aluminum
companies, public utilities, chemical
after
the
of
Large
have been
expanding
an
constructive
The
banking development during the
the sharp increase in loans made by the
nation's commercial banks.
the
foreign
JACKSON
Chairman, Chemical Corn Exchange Bank, N. Y. City
The
long-term
outlook
for
of
greater oppor¬
An increased need for bank
one
lending of funds promises to be
has been the 'case for-the last
remunerative than
more
20 years.
Our Administration in Washington deserves the
Pres-;
highest
commendation for the healthy state of the nation's
econ¬
Determination to halt inflation and arrest the rise
omy.
in
living costs has proved effective through the practice
policies by the Trrasury and good mone¬
tary and credit policies by the Federal Reserve Board..
cf sound fiscal
attention.
It
essential
is
these
that
policies
be
continued
if
■
tions
all
are
we
that
we'll
be
able
to
The
sell
I
look
be
as
good
ventory
an
the
year as a
or better than
policies
of
ness.
and
Currently
tomers
would
1955.
role
to
the
alloy steel busi¬
most
like
to
of
our
have
ulus to demand may
the rate of business
out.
makes and holds at g.plateau
tion
sometime
this year,,J
satisfactory volume
inventory .accumulation.
very
believe
oven
near
larger
we
overall
would still
do
a
without the incentive of
of
provided
outlays
time, has
more
than
the
S10
industry
to maintain their dy¬
We know too well, from the experience
are
Sound
well
as
monetary policies also
cf
from
our
own
nation's
are
fundamental in the
agricultural
profitable marketing of crops; and a stable dollar is vital
to protect the purchasing power cf our rural as well as
our urban population.
and, at
taxpayers
We
would
again call
-
lessened
I
as
problems .which have resulted
from many years of interference with supply-demand
ratios. Certainly industrial prosperity is essential for the
tax cut of some $7¥2 billion. This dedication to
efficiency and integrity has not precluded the
continual strengthening of our national. defenses nor
of all
countries
a
fiscal
J
and
episodes, how severely the economy suffers
inflationary and deflationary extremes.
solution
billion
American
other
from
short
by
same
with
econ¬
its present posi¬
three
the
disappear when
activity flattens
However, if the
omy
trade
American
The Presi¬
bcom-bust
ing Federal
cus¬
inventories to match their increased
manufacturing activities. This stim■
encouraging.
years ago.
Despite the burdens of
the budget legacy inherited from previous Administra¬
tion? and the ever-present threat of Soviet
aggression,
the Eisenhower Administration has succeeded in reduc¬
play
in
most
namic growth.
remote
In¬
customers
especially important
stainless, tool
whoie
is
To a nation where deficit spending had ap¬
peared to become part and parcel of governmental pol¬
icy, the objective of a balanced budget indeed appeared
may occur later in the
year,
for
situation
emphasis.
first
activity
fiscal
dent's forecast of a balanced budget for the current fis¬
cal year—as well as the succeeding one—deserves every
can
produce at least through
half of 1956.
While some
leveling.x>ff in. the rate of business
the
Joel,Hunter
field have been
dustry, not only in earnings but in further growth of
aid, social security, budget and tax matters, foreign aid,
resources
conservation, among others, await legislative
our
to
backlog applicable to earnings in 1957
ident Eisenhower's program on school construction, na¬
tional highways, public health, and atoms for
peace.
In addition to the above, agricultural policies, disaster
HUNTER
strong demand "for
in
better
Unfortunately, the first
Congress failed to
take
needed
action
on
important
pieces of legislation affecting the
Irving M. Ive§
welfare
President, Crucible Steel Company of America
The
continue
for industrial boiler volume
stewardship, the Pres¬
Representatives
session
than offset this decline.
Isenberjj
Present indications
tive outlook.
sales
casual
expansion will relate
new
will
An election year raises many im¬
ponderables in sizing up the legisla¬
waterproof footwear, but the growing demands for
rubber-soled
our
velopment and manufacture of nuclear
major portions of the Eisenhower
:
V
blueprint.
industries.
have
Manufacturers in
of
cushioning should continue to increase
biggest volume sold to the automotive and fur¬
winters
H.
*
in the past five years and is presently
engaged in expansion programs that will entail a still
higher rate of capital outlay for 1956 and 1957. Much of
»
-
of anything
duction capacity
York
will determine the
■
cf
Martens
associated
preparing to meet this demand and are continuing to do
My own company, for example, has doubled its pro¬
the 84th Congress cen¬
and
ship abroad.
Sales of foam
niture
and
excess
operation to be forthcoming from the
present majority party in the1 House
.
with the
New
vigorous program
units.
in 1956 by
should
high level following the high level of
trial activity;
V
demand
annual
turbines
so.
It
ident has painted in broad strokes
2%
should total about 8
Va. million units.
a
boilers,
ters upon President Eisenhower's admirable
State of the
Union message.
Together with his evaluation of the
to
here
Such growth will
years.
average
known in the past.
IVES
evaluation
an
three years of
tire
passenger
M.
Senator from
springboard for
picture in this second session
compared
an
Most
The
con-,
them
on
doubling it again in the
equipment far in
sav¬
boom.
dwell
The most significant
103 Vz million units in 1955.
Replacement
create
for
savings banks to pay an attractive rate of
deposits so as to provide an additional stim¬
HON. IRVING
-V.-tvY
-
million
construction
and
years
following 10
the demand for long-term funds.
We look for
passenger car and truck tire sales of ap¬
103 Fz
residential
not
that all indications
point to the necessity for doubling
generating capacity in the next 10
-
the
will
I
thrift.
and
155,000 tons
sumed abroad in 1955.
proximately
that
Savings banks thus seek to perform
their basic economic function of
encouraging thrift to
assure that the
savings supply will be adequate to meet
England,
as
on
to
conceivably reach 300,000 tons despite the shortage
of dollars.
surplus,
loans to
of
are
our
other than to say
Consumption of synthetic
will
year
has
consequences
partly to the superiority
Germany, France and Italy.
rubber
Ihlefeld
,
gradually increasing earnings.
This policy
expands the supply of savings available to finance home
building, and so protects the economy from inflationary
Synthetic rubber demand is expanding tremendously
foreign
August
in
folios while
of synthetic in many applications.
in
entering the year with
backlog of unfilled orders
history.
This is largely the
result of the heavy volume of utility
orders placed during the past year.
Long range estimates of the coun¬
try's needs for electricity have been
so widely publicized in recent
years
we
the largest
pension
bonds to
a larger extent than in
1955,
favoring government - underwritten mort¬
gages, land selecting conventional loans
carefully, sav¬
ings banks safeguard the high quality of their port¬
capacities, due partly to high
prices for natural rubber and
demand
ities,
from
year,
new
industry. Speaking for my own
from sales of boilers to electric util¬
Through
in the
Industry demands for synthetic rubber have far
ceeded
offset
by the indus¬
synthetic in 1955.
was
grade bonds
Engineering, Inc.
which derives 60 to 70% of its dollar volume
company,
ings banks should be in position to increase their out¬
standing mortgage loans by well over $2 billion for 1956.
The total amount of
mortgage loans made during the
year will be larger than in 1955; also, greater amortiza¬
tion receipts and mortgage satisfaction
payments will
higher prices, which will be reflected throughout all of
sumption
mortgage lending also
through limited sales?
From these two sources and additions to
in 1955 due to higher raw material and labor costs. These
try will continue to rise, probably reaching 65%
ISENBERG
good year for companies engaged in supplying the equip¬
Thanks to the aggressive steps being taken to attract
deposits, savings banks expect the deposit gain for 1956
to approach closely the almost $1.9 billion rise of last
year.
Some further shifting of bonds out of portfolios
is likely also to provide additional funds for
mortgage
lending.
Sales could go as high as $5% billion. Our estimate
is that 1,500,000 long tons of rubber will be consumed by
year,
II
Combustion
ment needs of the power
developed.
|
savings banks expect to make a compar¬
major contribution towards expanding the limited
supply of mortgage funds.
This
1,956.
next
high
demand
in
record
security of the American
Nineteen hundred and fifty-six promises to be a very
able
set a new
billion in 1955,
and
MARTENS
President,
funds.
Through sales pi
satisfy this demand, savings banks helped to shift sav¬
ings from a sector of the investment market having a
surplus of money to the mortgage market, where a great
in 1954.
exceed
attract
of government and corporate bonds.
There has been a sustained demand
industry
of
should
for
secured
were
previous record
of $31 million spent
The
Funds
than 1955 and $5 mil¬
more
more
to
way, I am hopeful that partisanship
the attainment of these worthy goals,
welfare
people.
deposits. As a result, their de¬
posits increased by better than $1.8
billion last year, despite record con¬
sumer
spending and the growth of
public interest in the stock market.
passenger car
Our business
efforts
the
to
new
expect increased business in replace¬
ment
their
hinder
not
essential
more funds for making
loans, savings banks have
intensified
tory. This sales volume will represent a gain of between
8% and 10% over 1955. The 1955 sales of over 900 mil¬
world responsibility; the constant
national security; fiscal integrity;
our
our
under
gets
gress
will
provide
mortgage
the
the fostering of a strong economy; and the response to
human concerns. As the second session of the 84th Con¬
of
President, United States Rubber Company
Union message,-President Eisen¬
objectives of his Administration:
the
of
discharge of
improvement of
last year. Mortgage holdings
savings
banks
now
aggregate
$17.3 billion, or over 60% of deposits.
HUMPHREYS, JR.
State
reiterated
The
billion
H.
his
hower
notably the
augment
1956
lined
New York City
reaching 3.46% in
The high rate
of capital
expenditures, both private and public, ex¬
pected in 1956 should again assure adequate investment
outlets for insurance company funds at reasonable rates
ily increased
Thursday, January 19,
.
implementation of policies designed to give added im¬
petus to a competitive economy. The President has out¬
a program designed to this end.v/V;'v
IHLEFELD
President, Savings Bank Trust Company,
low of 2.88% in 1947, but stead¬
a
,.
the
Administration's
the people.
have
dwelt
at
'
for
concern
'
,
the
,
.
reserve require¬
the various banking centers.
It is our
satisfactory solution will be developed. We
feel that a complete study cf the present reserve formula
-should be authorized.
It is our.belief also that assess¬
ments
welfare
length on the achievement of
stability because it" is especially indicative of
the faith
of our
some
present leadership in, this nation's free
economy and in the capabilities of free menr The con¬
tinued progress of this country is
dependent upon the-
between
hope that
'
financial
attention to the continuing- in¬
equity of the different percentages of
ments
a
imposed
for Federal
Deposit Insurance
are
un-
'
necessarily high..
Continued
on
page
90
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
Continued from page 87
One
final
word
N.A.M.
A Case
Against Federal
Advisory
Education.
The
eral
Aid
ing
ideals
children
to
na¬
To
the process of inculcat¬
into
is
the
of
program
isn't
leads
it
socialization.
and
lost-
feited
minds
of
step in
Socialism.
overnight.
in
which
the
final
of
If you do
your
nothing—you will have
Federal Aid.
carried
crisis.
a
of
men
,v"
have
many
valiantly
on
You
greatest
May I suggest
face
now
tion to N.A.M.:-
challenges.
new
a
N. Y.
"NOW AMERICA—MOVE!"
SAN FRANCISCO, Calif.—Dean
Security Dealers Elect Officers for 195S
Eugene
President
G.
of
Association
Statter,
the
New
announced
Hoit, Rose & Co., has been elected
Security Dealers Association, the
today. Elbridge H. Smith of Stryker &
of Joyce, Kuehner & Co.,
were
of
New
the
York
and
Francisco
Stock
Exchanges
will admit to partnership
ment
loru?
a
on
Feb.
against
Federal
Naylor
of
Oakland
Richard B. Putney of Los
enjoyed
in
which
little
a
I
in
Angeles.
Bache & Co. to Admit
Bache &
the
children
had
dinner with
invited
to
me
her family.
Walter A.
bread
gives
you
takes
for
from
you
chunk of
a
Exchange
Eugene
G.
Elbridge H. Smith
Statter
ner
partner
Building,
Bank
Stock
Jan. 26.
on
Exchange,
on
Hawkes & Co. Admit
On
Feb. 1.
William J. Flynn, Wall
Schiffer, member of the
Feb.
Jan. 31.
Goldsmith, limited part¬
will become
effective Feb.
a
1
members
of
general
New
Co.,
York
New York
the
Stock
Francis M.
partnership
Curr to
and
Robert
1.
E. Barnhart and Chester P.
Davis,
Jr.
general partner
r
to limited
partnership,
your
freedom."
We've
eral
we've
is
had
aid
campaigns for Fed¬
since
ever
never
being
now
1872.
such
seen
waged
a
But
one
and
as
which
will
focus upon the 1956 session
Congress. It promises to be a
political fight of the first order.
SUNRAY MID-CONTINENT
of
If President Eisenhower feels
der
un¬
the
necessity of doing some¬
may we not well suggest
thing,
this procedure.
is
"
Let
Federal
whatever
aid
proposed be limited under two
is
(1)
the
Herbert Singer
Cases
few
Dire
of extreme
which
states
need
in
need
can
prove:
out
(spelled
in
de¬
unavailable resources; full
use of borrowing capacity; a dis¬
position to sacrifice for the edu¬
tail);
cation
they want.
(2) Federal aid to be extended
upon
an
tion
basis—for
emergency
specified time.
date
be
bureaucratic
Let
the
fixed,
a
termina¬
machinery be set
set
up
who
by
stand
office
the
whole
to
be
under
than
be
those
beneficiaries
the
Singer, Bean & Mackie, Inc.
berg, of S. Weinberg & Co.,
The
Board
Governors
elected Secretary.
Samuel Wein¬
elected Treasurer.
of
the
Association
elected
at
the
in
Meeting will consist of: Harry R. Amott, Amott, Baker &
Co., Inc.; Philip L. Carret, Granbery, Marache & Co.; Frank
Dunne, Dunne & Co.; Maurice Hart, New York Hanseatic Corp.;
Herbert D. Knox, H. D. Knox & Co.,
Kuehner &
Inc.; Hanns E. Kuehner, Joyce,
Co.; David Morris, David Morris & Co.; Herbert Singer,
Statter, Hoit, Rose &
production of crude oil
Co.; Oliver J. Troster, Troster,
Singer & Co.; Samuel Weinberg, S. Weinberg & Co.
The
Nominating Committee for 1956 is composed of: Charles
M. Kearns of Kearns &
Inc.;
Company,
Williams; Paul Emert of W. L. Canady &
Robert I.
Willis of M. A. Schapiro &
emergency.
industry trends through
Annual
Mexico
Herzog
of Herzog
&
Co.;
Edward
T.
Co., Inc.
City, with 4,000,000 inhabitants, is the fourth largest
city in the Western Hemisphere-twelfth largest city in the world
LA#
k
of
was
was
Eugene G.
program
other
men
with
Weinberg
Singer, Bean & Mackie, Inc.; Elbridge H. Smith, Stryker & Brown;
can so easily and
inevitably
tend toward perpetuation.
let
pace
Association, and Herbert Singer, of
up
which
And
Samuel
elected Vice-Presidents of the
no
let
and
keeping
re¬
strictions:
I
and natural gas
from
'i■//"
w
mxm
/v
new
•**
»?■"/',
•!
J;-
In
y-y vv-
rf/f /•■'
Iy
Investment in
7
Mexico's
more
than 9,000 wells in
today there are many Industrial opportunities for foreign
friendly partnership with Mexican private capital and know-how.
Lower taxes, an abundant supply
In the Central Zone of Mexico-served
offer economic
industrialfrontier..!
Mexico
of raw materials, ample labor and
by The Mexican Light'and Power Company-with
an
power
combine
expanding market to
opportunity in a climate of modern industrial development.
the U.S.A. and Canada,
production Is constantly increasing. The generation and consumption of electric power last year were the
highest in the country's history. In the Central Zone, more than 2-3/4 billion kilowatt hours were generated in
1955, an increase of nearly 10% over
1954.
D-X is the brand
The demand for
name
light and power is steadily growing, but thanks to long-range planning, the cooperation
of the Mexican Government and the heavy
and distribution facilities,
investments made over many years to expand our generation
plenty of power is still available for new industry, And we have taken the first
ucts
manufactured
Company,
a
of
quality prod¬
by D-X Sunray Oil
wholly-owned subsidiary.
steps in a $ 200 million expansion program over the next 10 years to make sure that our customers can
continue to count on all the
The Mexican
A
light and power they need.
Light and Power Company, Limited
privately owned utility serving Mexico for
over
50
years.
14
City,
•
admit Robert H.
will
and
&
Hawkes
Street,
Diamond
E. Kuehner
a
New York
of the
will retire from the firm
when
become
National
members
Exchange,
John M.
Hanns
anybody
slice of bread — he
a
Baker, Weeks & Co., Philadel¬
Exchange, and C. Kenneth Smith
plained that the fare would be
simple but said: "I have taught
my
children that we'll eat our
own
Stock
Morton F. Stern,
ex¬
Barndt
City, members of the New
York
take
She
will
Pa.—Charles
L.
Co., 36 Wall Street, New
York
part of my
state. / A
days' friend, left a widow
ago to provide for her five
years
PHILADELPHIA,
phia
admitted to limited partnership in
is
northern
school
Stock
Baker, Weeks Admits
and
Henry C. Hofheimer II will be
recently
town
New York
Feb. 1 will admit
William H. McElnea, Jr. to part¬
nership.
•
!,
on
in
in
control
members of the
Jose, Jo L. Fuller of Honolulu, F.
for¬
orocess
Alstyne, Noel & Co., 52
Street,
New
York
City,
'
forget to fight for it.
eloquent than any argu¬
experience
an
slow
Wall
1st, Harold D. Barnard, Jr. of San
we
More
Van
Exchange
San
Linden
the
is
members
of
York
Brown, and Hanns E. Kuehner,
Alstyne Noel Co.
To Admit McElnea
Admit Four Partners
.
Freedom
It
Van
Dean Witter Co. Will
89
connota-
Witter & Co., 45 Montgomery St.,
against Fed¬
that
is
over
on
;
answer
tionalization
take
Committee
'
.
final
in
one
Aid to Education
velt's
You
the
to
(349)
SUNRAY
MID-CONTINENT
GENERAL OFFICES
SUNRAY BUILDING
f.
T'JLSA
OKLAHOMA
90
(350)
The Commercial and Financial Chronicle
Continued
from
B.
B.
than
$364,000,000 in Nassau and Suffolk Counties alone.
Brooklyn, we hold approximately 13,500 mortgages
totaling more than $75,00j,000, or some 16% of our total
mortgage portfolio.
88
page
JENNINGS
Chairman of the Board of Directors,
Socony Mobil Oil Co., Inc.
If
business predictions hold
current
Approximately
>
present
year will be even more challenging for the petroleum
industry than 1955 has been; competition on the sales
level will be sharper, and—of probably greater impor¬
$857,077,668 is
true, the
mortgages
vital role in
oil
the
reaching
are
available
of
drawing back from this
this
attitude
but
in
fiscal
authorities
this
level.
There
the
years through research proves this point.
Indeed,
competitive research is chiefly responsible for the fact
that the gallon of gasoline we buy today delivers one-
times
much
as
energy
as
one
purchased
25
and, in terms of cost of living, is bought at
years ago;
a
lower price.
In this connection, it will be a
significant victory for
competition and free enterprise generally if Congress
will see fit to return natural gas
production to the area
of competition where it
belongs. There is no justifica¬
tion in peacetime for government
regulation of the field
price of this competitively-produced
GEORGE
The
dollar
will
despite
volume
be
as
expected
an
of
great,
C. JOHNSON
7
home construction during
perhaps greater, than in 1955,
new
or
or
8%
decline
in
the number of
dwelling units built in the coming 12 months.
lending, accordingly, will continue at
high levels.
Demand for
tinue
strong
new
homes will
throughout
1956,
equal
exceed
or
the
1955
Homes will cost
more
i
level, and
foreign
because fami¬
George C. Johnson
building, especially
sound and prosperous
condition than at
time in the past. The population is
increasing at an
unprecedented rate. Personal income is at an
all-time
high, and every present indication points toward a con¬
tinued stable and prosperous
economy. All of these fac¬
tors tend to create a demand for
more and better
homes.
Having originated and closed more home
mortgage
loans during 1955 than in
any similar period in our
bank's 96-year history, The
Dime Savings
Bank of
Brooklyn looks forward to the coming 12 months
with
the expectation that 1956 will
present another year of
extremely intensive mortgage lending
activity.
We believe that an
adequate supply of mortgage
money
will be available to finance to
continued high volume of
residential construction within our
lending
area
During the year just ended, The Dime of
Brooklyn
8,692 mortgage loans for a total of
$113,850 000
This is an increase of
$33,937,000 from Dec. 31, 1954, or
a
gain of 42.4%. The 8,692 mortgages written in
the
past 12 months represent a 58.7% increase from
the
5,475 closed during the previous year.
closed
At the end of 1955,
our bank had
increase
vested
We
a
of
$547,824,992 invested
mortgage real estate loans. This
$70,865,652 from the $476,959,340
was
a
in
excess
a
reduction
of
in
taxes.
This
is operating at capacity, is
economy
in
and
net
in¬
40,000 loans aggregating
more
are
revenues
to
equal
for
those
1954.
1656
of
are
1955;
comprehensive traffic
on
sur-
Johnston
a.
to all employees, the addi¬
tional cost to the railroad will be about
$11 million annu¬
ally.
one
In addition, an increase from one-half
and one-half percent in
payroll taxes for
and sickness benefits to
spend¬
percent to
unemploy¬
employees will increase
ment
costs another
$1,250,000.
Improvements
The
'•
■
^..
1956
budget for capital expenditures will require
$35,166,000, of which $7,147,000 is for roadway, $638,000
for shop machinery, and
$27,381,000 for equipment. It is
proposed
issue
to
two
totaling $18,600,000 to
ment to be
equipment
75%
cover
trusts early in 1956
of the cost of equip¬
acquired.
Roadway improvements planned for 1956 include 150
in
track miles of
new rail costing about
$6,215,000, of which
$863,000 is chargeable to capital account, bridge work,
$1,657,000, Randolph Street (Chicago) suburban station
to some
improvements, $93,000, and changes in company-owned
and industry tracks, $580,000.
It is also planned to spend
about $605,000 to extend sidings to accommodate
longer
trains and $375,000 to install diesel repair facilities at
Markham and Hawthorne Yards, Chicago. Various other
geographical section of the United
undoubtedly be adversely affected by the
will
States
1955
$290
fringe benefits is extended
time.
increase
open
for
about
also
this
continued decline in agricultural income.
The depression
agriculture could spread to other sectors of the econ¬
omy.
There are other segments of the economy which
should be watched for signs of weakness. The economy
is undoubtedly near a turning point and, in spite of the
fact that Conditions appear favorable in the first half
of the year, a moderate downturn may occur in the last
improvements will cost about $3 million.
New Equipment will cost about
$25,400,000. The budget
calls for the purchase of 70
general-purpose diesel loco¬
motives to cost $11,900,000. The Illinois Central now has
171
switching,
166 freight
and 42 passenger diesels, a
Delivery of the 70 additional locomo¬
total of 379 units.
half of 1956.
tives
during 1956 will increase ownership to 449 diesel
of all kinds.
The assignment of the new motive
power will result in complete dieselization of all of the
units
PAUL W. JOHNSTON
President, Erie Railroad Company
of
soundness
nation's
Railroad
Erie
our
because
railroad's lines north of the Ohio River.
this new equipment, 4,258 road
economy,
total
the
are
bile
world's largest
assembly
Co.
at
plant
with
handle
we
good
a
products
and
fortunate
are
of
that
the
is
balance
agriculture,
steel,
automobile
our
The
freight
Central
iron
and
W.
P.
All of these
Johnston
ship
a
We
our
in
on
our
"
.
..
Based
we
believe
employes. A request for a 7% increase in
has been filed with the Interstate Com¬
the
year
the
duplicate
facilities
railroads, including
now
a
plan
to
reduce
excessive
being incurred in the operation of commuter
service in the northern New Jersey area.
shares from
was
paid.
The $3.50
1,
Central
opened
traffic
Canada, Mexico and Cuba
of 6%
to
a
over
are
estimated at 2,150,000, an in¬
1954.
parallel to its lines.
Piggy-back service was introduced June 30 between
Chicago and Memphis. Sixteen flatcars and 35 trailers
with
.
other
common
coordinated
routes
improvement in efficiency and economy, particu¬
of
the
Coordinated rail-truck service was extended
from
Jackson to Gulfport, Miss., during the
year. The Illinois
Central now has 4,000 miles of rail-truck
as
consolidation
the
1
Carloadings for 1955
crease
diesel locomotives, mechanized track
equipment, automatic crossing protection and other cost
saving devices. Several projects are under way for fur¬
the
on
Illinois
total of 103.
operating economies which stem from the large
capital improvements we have made in recent years
in
in
■
lesser amount
out the United States and
the
larly
owner¬
Offices at Chattanooga, Tenn., Macon,
Ga., and Green¬
ville, S. C., bringing the sales and service offices through¬
hope
things
ratios
Traffic
During
to accomplish this not only as a result of
anticipated increase in traffic volume but because
ther
a
;
rates
for such
best
outstanding.
in 1955.
of
the
rate reflects the two-for-one stock
split effective June
1954. There are 3,082,945 common share
Commission to offset the higher wage costs. With
prompt approval of this application, we expect our net
earnings per share of common stock will be higher than
the
■!"
World War I when
8% better than
merce
We
of
one
$3.00 to 83.50 a share on an annual basis. This increase
places annual payments on a basis equal to that prevail¬
ing from 1905 to 1930, inclusive, when the annual rate
was $7.00 a share, except for a
four-year period during
Our expenses will be higher because of
wage increases
granted to
2%,
to increase the dividend rate
1955.
freight
awaiting repairs to total
cars
than
Fiscal Policy
-
appraisal of potential traffic,
gross revenues in 1956 will be about
ratio of
less
During 1955 the directors of the Illinois Central voted
are
tunities.
a
of
are
planning our operations with
view toward sharing in the expanded business oppor¬
us.
capital expenditures budget exceeds that of
industry.
industries
optimistic about the prospects for the coming year. This
anticipated high level of production should, of course,
be reflected in a good volume of rail traffic that "will
be available to
1956
During 1955 the Illinois
acquired 70 general-purpose locomotives, 100
seventy-ton covered hopper ^cars, ten Airslide cars, and
constructed 35 boxcars at Centralia Shops. One hundred
freight cars were equipped for specialty loading, and
approximately 200 track miles of new rail was laid. Re¬
pairs were made to 12,000 freight cars, giving the Illinois
between
other manufactured articles.
freight
of
Central
a
coal,
on
1955 by more than $15 million.
Ford
parts
savings of between 20 and 25%
car program provides for the con¬
2,000 boxcars in the Illinois Central's shop
Centralia, 111., at a cost of $13,500,000. Also planned
is the equipping of 150 freight cars for
specialty loading.
During the coming year it is proposed to make extensive
repairs to 14,COO freight cars at a cost of $6,239,000.
diversified,
as
1956
at
General Motors Fisher Body stamp¬
ing plant at Mansfield, Ohio.
tonnage
It is anticipated that the additional diesel locomo¬
struction
new
Mahwah, N. J., and
of
use
.
automo¬
the
of
With the
miles, or 65.2% of the
Illinois Central, will be diesel-.
the
will
The
served
area
of
produce
investment.
all
in the
miles
tives
our
Notable among the
which have located on
road
ized.
the
activity
industrial
of
losses
thus
year ago.
have
of
Business
par¬
ticularly in Nassau and Suffolk Counties.
.
the
We
any
in 70,262 first
a
be
ve>TS conducted by the railroad. It is
anticipated operating expenses
for the coming year will exceed 1955
by about $3,500,000.
If the pattern established
during the latter part of 1955
relating to wage increases, including payroll taxes, and
Wayne
question.
area.
appears
more
result
a
as
Motor
tempted to sell these securities and invest in
mortgages.
Generally, the entire home building industry
a
based
spendable income could result in increased volume of
sales.
The desirability of a reduction in taxes, when
plants
Should the price of Government
securities rise suffi¬
ciently above present levels, many institutions will
be
to be in
expected
probable that they will reduce their
purchases
of
durable
consumers'
Gale
F.
Johnston
goods this year while they pay off
debts
previously incurred.
There
seems to be little reason for believing that other types
of consumer expenditures will be reduced, however. Later
in the year disposable personal income may be increased
by the Erie.
nation, the supply of mortgage
depend largely on the price of Government
Federal fiscal policies.
.*
bonds and
Operating
expenditures.
expenditures will prob¬
a
revenues
to
compared with $209 million in
a
aid
on
1955
Operating expenses for the year will
approximately $211 million as
ing spree financed in part by an
expansion of consumer credit. It is
the last few years
In other sections of the
funds will
of
Russians
Consumers have been
for
be
of
ably continue to advance for
line
will be sufficient to
continued high volume of
the
Net income
million
compared with 8276 million in 1954.
railroad and the indus¬
trial growth that has taken place in
purchase
a
economic
Construction
along
the past year.
in the New York
Operating
the United States will probably lead
to an expansion of both military and
increased
appreciably in price within
support
between
1954.
in 1950, however, included approxi¬
mately $5,650,000 non-recurring in¬
come applicable to
prior y^ars.
r
capital
The pressing nature of
investment.
in
estimated
maintenance
programs
share, is expected to be the
105-year history.
This
of $22,014,194, or $7.14 per
$26,269,000, respectively. Net income
business
the
to
enlarged
struggle
the
seeking larger houses; and
land, labor and materials have ad¬
and
to
lending
activity at
apparently several factors which
lead
per
company's
income
exceeded only in 1950 and 1953
when net income was 829,412,000 and
plus the
favorable predictions of businessmen and government
and private economists, add to our confidence that rail¬
road freight traffic will continue at a high level in 1956.
We are particularly encouraged on
but
Mortgage money available for the
financing of new home construction
maintain
with
The
are
vanced
expect
we
mortgage
JOHNSTON
was
high level in the immediate future.
Businessmen are planning to proceed
j..
probably will compensate for any
drop in the number of housing starts.
lies
the
Louis, Mo.
will
Mortgage
con¬
these homes generally will cost more
than those built in the
past' year.
Therefore, actual dollar volume will
highs,
for
sums
A.
share
in
commodity.
President, The Dime Savings Bank of Brooklyn, N. Y.
1956
in
with net
JOHNSTON
to
are
the
long run prove of
great benefit to the industry and to all of mankind.
In this endeavor, competition—as it has
always been—
will be the key element.
The long record of steadily
higher product quality established by the industry over
and-a-half
$8.37
or
highest
a level close to max¬
capacity, and efforts will be made by the monetary
and
sources,
cannot
$25,810,000,
third
real
on
The economy is now operating at
imum
the industry has taken the
long view and welcomed it as a partner in a common
task.
One doesn't go too far out on a limb to predict
that
F.
St.
and most
newest
mortgages
Thursday, January 19, 1956
.
Illinois Central Railroad net income for 1955 estimated
at
of
Vice-Chairman, Mercantile Trust Company,
vision of the industry itself.
of energy
all-time
substantial
GALE
business, but it
particularly significant that this
past year has seen a number of oil
companies,
Socony
Mobil
among
them, committed to large nuclear
research programs. While it is doubt¬
ful that this new area of
inquiry
and experimentation will
begin to
bear fruit for some time, it is none
the less safe to say that the very
fact of its existence will have great
and immediate impact on research
B. Brewster Jennings
programs generally.
Certainly the
entry of the petroleum industry into
the field of nuclear research not only augurs well for
the consuming public but, in addition, it testifies to the
Instead
first
assets
a
is
awesome
in
total
throughout 1956.
will be intensified.
has
always played
processes
' Research
.
invested
now
bank's
Because deposits are increasing at a record-breaking
rate, while interest payments and satisfactions of existing
lave
and better products
new
the
of
estate.
tance—efforts in the field of research
develop
63.9%
.
President, Illinois Central Railroad
compares
to
and
WAYNE
In
.
provide daily
service
in
both
directions,
Mondays
through Fridays. Initially begun to handle LCL traffic
at prevailing rates, the service was extended Oct. 1
to
Continued
on
page
92
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(351)
Color Television: A Billion Collar Bsby
Paine, Webber Adds
RCA
Merchandise Manager Mi.ls haib color as industry's
brightest hope and definite spur to total TV sales. Sees healthy
by
television
Paine, Webber, Jackson & Curtis,
24 Federal Street.
creased
look
can
high
forward
continued
hope, I believe, that we have ever
had
in
our
industry, the phe¬
nomenal
Richard M.
—
with
connected
now
volume
television
television
is
with
dollar baby.
"Color television
predicted Jan.
us
as
a
BOSTON,
White, Weld
Mass.
Will
be
an
(Special to The Financial Chronicle)
r—
Lucille
B.
Ellis,
added
tinue
to
the
staff
Co.,
Ill
shire Street.
Mills,
Manager,
Merchandise,
are
necessary
demand."
Victor
satisfy
to
toward
of
better,
in
higher-priced
re¬
ceivers.
"I
Speaking at
Allan
in
B.
Winter
Home
Furnish¬
ings Market, Mr. Mills said:
second-set
and
to
in
tie
have
effect
some
black-and-white
C.
offices
at
Benny
Avenue.
G.
associated
with
him.
SPRINGFIELD, Mass.—Paul H.
Gale has become
D.
J.
St.
associated with
Germain
&
Co.,
100
now
with Arthur M. Kren¬
Kyger & Co. Formed >
HOUSTON,
Texas —Bryan
H.
sky & Co., Inc., 141 West Jackson
Kyger, Jr. has formed
Boulevard, members of the New
Co. with offices at 1746 West Main
York
and
Midwest
Stock
Ex¬
changes.
Street
to
engage
in
a
Kyger &
securities
business.
colors
total
the
of
inventories
consumer
i
this
high
are
the real start of color
materially increased average
numerically, with respect to past
experience, I do not believe that
sales
a
thev
are
rent
industry rate of sale. Com¬
unit
dollar
value, I
volume
for
look
to
1936
compare
very
bined
favorably with 1955."
Mr.
"is
side
Mills
entire
potential
industry.
"I
not
a
do
color
said
television
for
bonanza
it
think
the
would
be
possible to overemphasize the im¬
portance of color television to our
industry.
brightest
the
is
Color
out of line with the
manufacturer
cur¬
distribu¬
and
tor inventories declined somewhat
during December—a healthy
dition
and
—
believe
there
that
is
con¬
to
reason
retailers
bought
cautiously during December and
that inventories at the retail level
well in hand."
are
Securities Salesman's Corner
By JOHN BUTTON
Usinof the Tax Laws to Ssll Mutual Funcb
One of the most effective means
of
a
building
meet
Urldcr
where
on
G.
can
you
"favorable
a
has
who
Helbig,
basis."
had
of successful experi¬
ence
as
a
practical investment
dealer and has specialized in ap¬
years
plying "tax saving plans" for his
clients, has presented what
he terms a "Charity and Income
own
Benefits Plan" in
his
for
come
substantial means and
influence
many
working assets, yielding him
of about
method
people of
Baron
clientele is to evolve
a
lifetime,
at
in¬
cost
a
$28,000."
this plan the donor bene¬
fits through
legal tax savings, he
enabling his favorite char¬
ity or church, school, or hospital
to be certain that upon his death
they will receive the funds they
also is
have
reserved
them
for
in
trust.
This
plan has apt. advantage over
funds set up in/'wills" as far as
recent issue of
the beneficiary institution is con¬
which is cerned, since wills can be changed
Nauheim and pub¬ and this plan is irrevocable and
lished by Kalb, Voorhis &
Co., definite. Once fnade there is no
25 Broad St., New York 4, N. Y., changing these irrevocable trusts.
Modern
a
Security Sales,
edited by Ferd
as
service to dealers
a
in selling more
You
Brief
MSS
plan enables one to make
donation to his favorite charity,
This
a
It's almost
developed the com¬
plete campaign and it is available
to
interested
dealers.
The
parties designated
the trust and
come
principal
the
receives
the death of the donor, or
creators of
as
they receive the in¬
be created by more
than one person.)
On
such
irrevocable
trusts
made
in
favor
of
institutions
where
a
charitable gift is
in¬
can
Bureau allows an
based
duction
pectancy
the
of
income.
Revenue
Internal
the
volved,
income tax de¬
upon
those
the
life ex¬
who
Hel-
big's article in MSS) "A man in
the higher
income tax bracket,
old, with a $50,000 a
year gross income, the income tax
would ordinarily run about $26,000.
If he set^ up an irrevocable
trust fund of $41,000, he would
say
pay
50
years
only
income
a
tax
little over $13,000 in
that year.
save
about 50%
man
would
on
He would
his tax.
then have
This
$41,000 in
donors,
There is still
mailing
newspaper
and
"mats."
of
Mr.
is
Helbig where it is desired
oossible, through MSS.
One
New
York
effort
has
using
the
a
made
Charity
v
of
in New Jersey, the Crossroads of the East.
v
Income
to
build another station costing approximately
$100,000,000 generating
recently announced plans
$129,000,000 in Bergen County.
$200,000
and
room to grow
keeping pace with this growth by building and
station under construction at Linden, the company
dealer,
says
few months of
sales
housing developments.
expanding our electric and gas facilities. With one new
made
MSS, after only
plenty of
And Public Service is
Also, figures of. possible tax sav¬
ings and the personal assistance
Never have
we
attempted to
gaze
into
a
crystal ball. But 1955 was
Benefits
Plan.
A Florida dealer
without literature and
advertising
has started to experiment with
this
receive
(Quoting from
interested-
pieces
during his or their lifetime.
(Trusts
contagious sort of feeling, spreading through industry, business,
commercial establishments and new
includes sales letters, how to con¬
tact
on
a
plan
ing his lifetime by setting up an
irrevocable trust. The beneficiary
only
Jersey.
has
hospital, college or university dur¬
institution
feel the progress which is taking place throughout the state
How to Use the Plan to Sell
Mutual Funds
in
Plan
The
can
of New
interested
Mutual Funds.
plan
and
has
just
wonderful and
made
New
in¬
teresting aspect of this plan, as far
as the selling feature is
concerned,
is
a
it
possible
investors
vorable
meet
a
basis.
business be
Funds
to
on
but
high bracket
dignified
Not
only
and
fa¬
should
developed for Mutual
other
business
should
also results from these
contacts.
PVBLICOSERVICE
£
a
qualified salesman, that it makes
why 1956 will not follow the same pattern.
Jersey's leadership will be
maintained in the years to come.
that if properly
presented, and
serious
effort v is made
by
we see no reason
Every yardstick indicates that
$50,000 in sales." *
What I believe is the most
'
secu¬
styles
"While
on
Neverthe¬
sales.
less, with
at
is
from
a
style
new
with
in line with current!
may be that even with a
furniture promotions," he said.
good
sound
national
economy,
Mr. Mills said the TV industry
1956 will not quite reach the unit
sales total of 1955. After all, 1954 enters the new year in a "healthy
was
a
record year in unit sales. condition" insofar as inventories
And so was 1955. The advent of are concerned^::;?
mav
business
Filhiol
Christian
CHICAGO, 111.—Harold E. Sodekoff is
manufacturers
market, and
approaches
"It
color
La. —Grover
engaging in
capitalize on this trend by
promotional effort on specialty
models, models designed for the
lvn....
ction
the
rities
is
will
press con-
ference
that
Grantham
408
Joins D. J. St. Germain
Chestnut Street.
expect
134 North
Co.,
*
>
(Special to The Financial Chronicle)
public
black-and-white
&
With Arthur Krensky
(Special to The Financial Chronicle)
models"
Corpo¬
America.
with
quan¬
Mr. Mills cited "a definite pub¬
lic trend away from price leaders
Division,
c o n n e
produce whatever
&
tity of black-and-white receivers
Television
a
to
Weld
Holyoke
Devon¬
of
^
•.
(Special to The Financial Chronicle)
13th Street.
been
B.
o n
associated with A.
MONROE,
Phail has become connected with
have
White,
t i
now
and
G. C. Grantham Opens
LINCOLN, Neb.—John R. Mc-
Geyer and Henry G. Nichols, Jr.
10 bv Allan
ra
Allyn
Company, Incorpo¬
rated, 174 North Upper Street.
Street.
(Special to The Financial Chronicle)
important part of RCA's sales and
profit picture while we will con¬
Radio
C.
With Ellis, Hclyoke
notwithstanding.
billion
during
it was
RCA
LEXINGTON, Ky.—Richard R.
French is
•
Two With
black-and-
of
progress
white
Color
to
dollar
1956,
son
is
A. C. Allyn Adds
■
(Special to The Financial Chronicle)
'
industry, aided
anticipated
greatly
in¬
sales oi: color receivers,
the
Giessing
(Special to The Financial Chronicle)
FARMINGTON, Mo.—Alfred E.
Farrer, Jr. is now with M. P.
Giessing & Co., 108 North Jeffer¬
BOSTON, Mass.
Karoff
inventory situation and growing second-set market.
The
Joins M. P.
(Special to The Financial Chronicle)
91
•Ifes
%
'■4?;
r
I
'
I
J
"V t
92
The Commercial and Financial Chronicle
(352)
Continued
from
page
at rates competitive with
embrace trailer-load shipments
common
A
high level and prospects for the year
ahead are very promising.
Recent changes in this di¬
vision's food distributing organization should substan¬
tially reduce selling costs and aid toward increasing the
profits of this division.
carrier highway operators.
reduction of
schedule of perishable
Chicago markets was
day in the
one
shipments moving from Florida to
made effective in October.
General
Outlook
Operations of Glidden's Chemurgy Division in Chicago
sales of soybean-derived pro¬
dietary food produced from edible
soybean oil, continues to find national distribution and
acceptance.
• •
Lecithin,
operations this month. In addition, new facilities for
the production of new soybean , products and, expansion
of the
plants in Georgia and Florida will add measurably to
Glidden's results in
when
overdue
paramount importance also in the coming year
will be the continuing expansion of the Glidden Com¬
pany's overseas markets. Glidden International, C. A.,
now
in process
of incorporation in Venezuela, is a
wholly-owned subsidiary and will handle licensing,
unfair com¬
trans¬
of the
Commission, said the time is long
should
policy
transportation
our
manufacturing and distribution of all Glidden products
be
all countries except the United States and Canada.
Technological assistance agreements have been nego¬
tiated by Glidden International for 15 countries, with
additional agreements currently under consideration.
in
brought into step with the times.
to
and
policy,
Cabinet
a
of Federal transportation
revision
study
appointed
Eisenhower
President
1954
In
Committee
released by the President
this report was
The Glidden
early in 1955. While the recommendations contained in
the report do not include all the things which the rail¬
roads would like to see dealt with, it does point in the
right direction.
Major points made by the report are:
Needless costs are imposed on common carriers
and the public using them because government policies
economical
prevent the most
of the nation's trans¬
use
portation facilities.
genuine
other
and
Railroads
(2)
carriers
common
with
in pricing services
regulatory agencies fixing only reasonable mini¬
mum
and maximum rates.
should
be
allowed
lent
greater freedom
(3)
form
competitors, particularly waterway operators and
truckers, have alleged that the railroads are seeking to'
destroy their business. This is pure nonsense. What the
railroads are seeking is nothing more or less in the way
of opportunity to compete than the highway or water¬
way operator already enjoys.
Our
The Illinois Central and other railroads plan to throw
their entire weight
behind efforts to bring about legis¬
lation which will correct the inequities which now exist.
It
is
about a
The re¬
port of the Committee is in the public interest, and those
who would oppose it are acting to protect selfish advan¬
tages—advantages which ultimately must be paid for
by the public in the cost of the things we buy,: eat
and
that
hope
our
sounder
common
efforts will bring
this country.
these
carrier system in
~
wear.
'
DAN
and.
President,
Glidden
The
Company
ucts indicates that the year 1956
will be
one
rewarding in the history of the Glidden Company,
This optimism is based largely on the excellent
sults
by
service
of
fiscal
1955
facilities
to
and
the
on
re¬
fact
Our service
lies in 64 counties
area
constituting most of the Lower Pen¬
of Michigan, aside from the
Detroit and Thumb areas, and has a
population of about 3J/2 million peo¬
ple. The diversity of industry ar.d
business in this area is very import¬
ant
to
the overall
Consumers
mercial
been
establishments
in household
a
high
our
paint
at
and
and
stantly
previous
colors
Volume
to
of
products
new
meet
this
industrial
and
demand.
paints
and
polyester resins has increased sharp¬
ly and the trend is continuing.
Today, major emphasis is being
placed on chemical research for new
raw
materials
ferent
and
in
the
improved
form
of
resins,)
dif¬
better
solvents, and greater improvements
Dwight p. Joyce
in the technique of
sions
producing emul¬
capable of creating
type of surface.
any
Throughout the industry, researchers are working on
the development of synthetic vehicles that will
possess
improved stability and other desirable properties. Un¬
doubtedly these
new
vehicles will offer improved
sta¬
bility of cost.
Glidden
direction,
ment,
kitchen
illustrated
by
our
butoxy resin
develop¬
coating which is derived from petroleum, and
a
silicone
resin
base
industrial
finishes
cabinets, metal furniture
for
Durkee Famous Foods
in
and hundreds of other
We
was
and
we
had
a
a pro¬
summer
greater than our winter peaks of
attribute this development partly
air conditioners, laundry dryers and other household
appliances. The year 1956 will see
electrical appliances.
Natural
a
wider
of all
use
This
has
been
in : the
1956—particularly
precooked
;
con¬
a
food
frozen
to
definite
This
grow.
will
trend
continue
1956.
the
outlook from the standpoint of our
Beatrice Foods Co.'s total unit sales of
combined have increased each year for
1954. The
major de¬
the last 19 years, and 1955 was well ahead of
indication is that in 1956, unit sales in all
of
partments
previous
the
At
the
again
company
will
above
be
the
"vV •'
year.
time
same
costs
faced with narrowing
are
going up, and we are
profit margins. This applies gen¬
the dairy industry, and also throughout the
industry. Certain costs of distributing food,
and retail, have risen markedly during
the last five years.
Our company and countless other
food processors and distributors have made tremendous
effort to keep these increasing costs within bounds. One
effective result has been the achieving of better process¬
erally
in
distributing efficiency—which has resulted in
prices of many 1'ocd items at a lower
consumer
T:
a
situation
year
ago
is very
much the
that we faced
same
at
the, beginning of 1855—narrowing profit
the prospect of,increased sales volume.
company has been able to effect economies
margins, with
Thus far
our
and efficiencies—and
sufficiently increase our unit vol¬
through diversification and expanded sales effort
—to produce the gross needed to take care of the in¬
crease in expenses and.still increase our total net profit
ume
above
a
What
year
we
able
be
remains
course
:'Vi;'
ago.
will
be
to
to
achieve
in
the
future
However,
seen.
we
are
of
very
optimistic about the future for the dairy products in¬
dustry and food business generally because of continued
high purchasing power and increasing copulation, both
of which will contribute to increased volume in
1956.
with
homes
natural
gas
gas, and more than 80,000 applications for
heating service are on file with the com¬
Restrictions
pany.
customers
have
on
been
the connecting of house heating
in
for
force
McCLURE
Baldwin
tremely
seven
years
two
connect
Before
a
some
years,
but
in
Michigan Public Service Commission to
substantial
supply
can
number.
catch
up
In
with
1955
it
demand,
was
30,000.
additional
quantities of gas must be obtained.
has been exceptionally
high and industry leaders believe 1956 will be
year,
though perhaps not
In other
a
a
good
record year.
Michigan industries, also, the outlook is good.
Michigan continues to attract
a
traveling and vacation public and
continue
our
high percentage of the
our
upward trend in 1956.
Hamilton
-
line
from
Corporation makes
farming, including
I believe
we
will
an
ex¬
electronic
small
are
York
now
Central
under
construction for
Railroad.
a
the
New
third for
The
company has an
group.'engaged in the design of ground
handling equipment for guided missiles and is also work¬
ing on the electronic and instrumentation phases of the
engineering
missile
field.
Essentially
all
category of heavy machinery
is sold to other industries
of
of
or
this
comes
under
the
capital goods and hence
governmental bodies rather
or
consumers.
For
zation from the
Lima
which
of
the New
have obtained authori¬
we
-
varied
measuring
devices up through earth moving machinery, hydraulic
turbines, testing machines, valves, governors, mechani¬
cal and hydraulic presses, can-making machinery, heavy
machine tools and steel mill equipment, weldments, fab¬
ricated structures and locomotives. Among new items are
light-weight high-speed hydraulic-driven locomotives,
than
each of the last
KELLEY
President, Baldwin-Lima-Hamilton Corporation
York, New Haven & Hartford Railroad and
also has a tremendous growth potential
in Outstate Michigan.
Nearly half of our more than
420,000 natural gas customers now are heating their
gas
dairying and fruit-growing, is sound.
Division, which produces
1,000%-.
specialties of the "heat and eat" varieties.
America is continuing to eat more and more of these
convenience foods.
Volume on packaged convenience
foods of all kinds—frozen, in cans, and dehydrated—will
the
first
six
majcr buying
months, at least, present conditions
indicated in industrial equip¬
seems
ment and Baldwin-Lima-Hamilton
looks forward to in¬
creasing moderately its sales volume in 1956 even
though some non-profitable lines have been and will
be dropped and other items will have taken their
places.
The corporation will enter the new year with a back¬
log 35% over Jan. 1, 1955. Two limiting factors have
been present in 1955 and appear to be in prospect for
early 1956, namely extremely competitive buying con¬
ditions
appliances,
products.
Our
to
years
air conditioners, have
Automobile production in 1955
already has achieved much progress in this
as
peak in 1955 that
as
bases
and
superior protective films for
than
more
sistently fast moving growth all in a 15 year period, and,
since frozen food volume still is such a small portion
of total food consumed, there surely will be more growth
increase
has been steady and we
Every year sees
coming into general use,
electric demand.
on
The
some years.
appliances
these, such
effect
households.
of electricity
use
electric
of
some
nounced
new
resort business
Company's continuing ex¬
made necessary by growth
population, but a larger factor is the greater average
use
of electricity and natural gas by industries, com¬
division, for example, can truly be
said to be booming, and we are con¬
adding
and
Power
has
program
t
of
divisions
continuing
increased
This
nearly equal to that derived from farming and Michi¬
is one of the top five leading states.
of
per capita consumption,
steady and substantial in-
a
in population' each year,
crease
;
an
level.
as an industrial
and, while the largest single
Dan E. Kara
industry is automobiles and automo¬
tive equipment,
industrial produc¬
tion
is well diversified.
Chemicals, paper, furniture,
machinery, household appliances, packaged foods are
only a few of the many important products of the area.
In agriculture Michigan ranks in the top third of the
states and we supply electric service to over
100,000
pansion
;
like
probably is justy'as good of better for
consumption of many of our non-dairy convenience food
items, such as frozen foods, in 1958.
The frozen foods
industry has been growing rapidly and "still is young.
Consumption of frozen foods was of negligible impor¬
tance up to 1940, but during the period since then, it has
ing and
igan is outstanding
The dollar volume of tourist
housewife..
what looks
to
outlook
keening
state
additional
are
>: .,y,.
The
in
have
we
the
to
addition
upturn
Karnes
G.
Wm.
Michi-
economy.
believe it will continue for
Current business of
In
both wholesale
insula
that operations of all our company's
level.
attractive
•entire food
than
more
$580,000,000 since World War IL
Part
of the most
There is
for all
Analyzing
gan
Increasing demand for paints, pigments and food prod¬
since 1945.
;
:
an ample supply of milk
dairy products and the lower
retail prices will continue to be very
year
company alone,
all departments
outlook
had the largest single
capita consumption of
we
per
milk that has occurred in any
fluid
KARN
for 1956 in the Outstate Michigan area
Consumers Power Company is good—as is
borne out by the fact that our company is planning to
spend $89,000,000 during 1956 on expansion of its elec¬
tric and natural gas service facilities.
This is the largest one-year program
in
the
company's history. 1 It will
The
served
is
Chairman
E.
President, Consumers Power Company
farms.
DWIGHT P. JOYCE
am
in 1955,
gain in
continue
1956.
bring the company's total investment
Regulation, to be effective, should rely chiefly
competitive forces in rate making to enable each
of transportation to do its best work.
industry, I
through
in
upon
Company looks forward to a truly excel¬
showing in
/
(1)
1956.
Of
petitive position as compared with other forms of
portation. Richard F. Mitchell, when Chairman
Interstate Commerce
company's capacity to produce terpene chemicals
products at its Southern Chemical Division
related
and
dairy and
happy to say that the future looks
favorable for increased per capita consumption and an
increase in total consumption of all dairy products, in¬
cluding butter.
The downtrend in
per
capita consumption of butter
leveled off in 1952, and total dairy
products consumed per capita has
been
increasing since then.
Based
on figures for the first nine months,
food
plant in Baltimore, scheduled to open
dioxide
,/
look forward to another year in the
we
early this spring, and a $6,000,000 grain elevator on the
Coiumet Kiver in Chicago which is scheduled to begin
transportation' policy is
antiquated and out of balance is overwhelming. In re¬
cent years this fact has been borne out in the studies
"conducted by the Brookings Institute. The hearings held
by the Senate as provided for in Senate Resolution 50
confirmed the fact that railroads were in an
As
plant
titanium
national
the
that
unique
a
KARNES
President, Beatrice Foods Co.
improvement and expansion program is
progressing rapidly. Some recent additions include a
new paint plant at Montreal; additions to the paint plants
in Atlanta, Chicago, Cleveland, Reading and Toronto;
additions to all four of our edible oil refineries; a new
Our
tation bplicy
Evidence
steadily increasing. "RG"
teins and other chemicals are
Tne
has
been a reflection of a period of unprecedented levels of
economic activity. Even with the economy in high gear,
however, railroads have fallen considerably short of
earning
even
6%
on
investment. In contrast, the
return earned by other industry, banking and utilities
ranged from approximately 8 to 12%:
Other evidence
that rails are not holding their own in relation to the
economy as a whole can be found in the fact that a few
short years ago railroads handled about 70% of all inter¬
city traffic.
Now their share of intercity traffic has
slipped to less than 50% of the nation's total.
This in¬
equitable situation stems from an outmoded transport
conditions are not all they might be.
showing made by the nation's railroads
be favorable,
financial
very
a
have been intensified, and
railroad industry appears to
While the outlook for the
at
ing
Thursday, January 19, 1956
.
G
WILLIAM
shortening, margarine, condiments, edible oils, spices,
flavoring extracts, salad dressings and other food prod¬
ucts for home and institutional use, has also been operat¬
90
.
.
steel
of
narrowing the profit margins and
which
quantities.
Baldwin-Lima-Hamilton
.
a
shortage of
consumes
large
"*
Baldwin-Lima-Hamilton plans to continue to consoli¬
date, reorganize and modernize to the best of its ability
Volume 183
Number 5460
its present properties.
The Commercial and Financial Chronicle
...
This involves elimination of
some
present uneconomic plant property and establishment of
others such as a new plant in the Boston area in which
(353)
Kilowatt-hour sales to manufacturing establishments,
had levelled off somewhat in the latter part of
1954
the first
and
half of
its electronic and instrumentation plants would be con¬
All of this reorganization and consolidation
upward
in the last
months
of
should
were
solidated.
present
modern
cost
sales
better
a
possibility
and
more
a
picture to improve in the future the sales
volume and profit ratio.
Some time, of course, will have
to elapse before these objectives can be carried to com¬
pletion.
1955
President,
The
1956
S.
Oklahoma
outlook
Oklahoma
and
Oklahoma
for
KENNEDY
Gas
Electric
&
business
in
service
our
area—
Gas
Western
Arkansas—appears very good.
and Electric Company expects a gain
approximately 12% in kilowatt hour sales and 10%
of
in
revenues
has
in
made
recent
1955.
over
great
Oklahoma
economic
She
years.
led the states
pared with 19%
for the U. S.
income
data
for
the
first
sales in
six
Northern Railroad
NSP's
kinds
to
built
in
cities
building
projects
completion this
for
number
served
in¬
benefits
are
$1,466
was
in
$1,127
cumulative.
construction
partment
Commerce
of
growth
industries
of
in
by
NSP.
in
and
A
1955
was
store
few
or
of
the
several
More
cities
buildings
larger
where
NSP
now
Largest single expenditure during 1956 will be made
a new 100,000-kilowatt
generating unit
scheduled
for
•
is being added to the High Bridge plant. This will
bring
the
NSP
system's generating capability to
1,457,205
(
Continued
\\
small
to $326,000,000, compared
$170,000,000 in 1950. (These
figures do not include 20,000 civilian and 4,000 military
It pays to
amounted
personnel at Tinker Air Force Base in
Oklahoma City
engaged in the maintenance and modification of military
aircraft.)
In spite of some adverse census estimates, reliable
population data, such as school enrollment and births,
all point to a steady growth of population in Oklahoma.
The
Bureau
of
Business
Research
the
at
University of
which compiles population estimates for
in the State,
shows an
uninterrupted
growth in population in Oklahoma each year since 1945.
Ship and Travel
Santa Fe all the waY!
Oklahoma,
each
As
county
for
own
our
company,
know there has been
we
strong population growth in
service
our
a
We have
area.
connected 50,000 new customers to our lines within the
past five years within the same service area.
these new citizens come from other states.
Many of
The company's construction program is geared to this
general expansion. Construction expenditures for the
past five years totaled $90,000,000, and the estimated
budgets for the next five years exceed $100,000,000. A
110,000
kilowatt
Station
near
addition
to the Mustang Generating
City was placed in operation
in May, 1955, and a 170,000 kilowatt addition to the
Riverbank Generating Station near Muskogee in East¬
ern Oklahoma is now under
construction, scheduled for
operation in May, 1956.
The
Oklahoma
construction
budget
for
1956
$23,000,000. This will include work
is
on
a
approximately
170,000 kilowatt
addition of the Horseshoe Lake Generating Station near
Oklahoma City scheduled for operation in 1958. Another
170,000
kilowatt
generating
operation
in
necessary
to keep
our
1959
or
unit
1960.
has
These
been
large
ordered
additions
for
are
with the rapid load growth in
pace
area.
ALLEN
President,
In
Northern
S.
KING
States
Power
Company
the
territory served by Northern States Power
Company all indications point to a continuation of the
present high level of business activity in 1956. During
the past year department store sales in the Ninth Federal
District
Reserve
while
farm
tained
at
general
and
also
main¬
high
level.
was
relatively
in
high
new
in
this
decided increase in
a
the
a
production
income
a
Business
showed
over
set
agricultural
cash
area
activity
previous
year as indicated
by the sale of electricity and gas in
territory served in this area.
Si, si, si, cloico! It's
more
convenient
the
The
same
rate
Northern
saw
pany's total
rise
to
gross
record
a
increase
of
States
revenues
level
which
Power
of
and
Com¬
for 1955
more
gross
in
revenues
1955
higher than in
1954.
increased
5.7%
nues
...
is the only
use
only
one
and Santa Fe
railroad under
7.3%
were
Electric
and
dependable to
railroad
than
$126,000,000 may reasonably be ex¬
pected to continue in 1956.
NSP's
Allen
reve¬
gas
S.
King
one
reve¬
reflecting the continuing development of space
heating and increased supplies of natural gas, increased
management
linking
nues,
r
20.5%.
Residential electric sales maintained
steady upward
8.6% over 1954.
by the increasing use of electri¬
city in the home and the continuation of a high level of
residential building that placed 14,000 additional resi¬
dential customers on NSP lines.
Although residential
with
pace
This
kilowatt-hour
is accounted
construction
from
1955
in
sales
a
rising
1956
is
expected
to
levels, it is anticipated
decline
that
Sales to commercial establishments
improvement in 1955 with
summer
stores
use
use
and
and
of
the
offices
California,
Colorado, Texas, and
for
NSP
air
an
showed
increase of 8%
conditioning during
modernization
of
contributed
the
in this category.
to
a
will
a
con¬
SANTA FE SYSTEM LINES
marked
over
very
lighting
points in the busy southwest.
somewhat
tinue to show gains in residential sales.
Increased
Chicago,
1954.
warm
in
many
growth of
power
manufac¬
in St. Paul where
the
neapolis and St. Paul, the Lutheran Brotherhood build¬
is
provides
tured gas service.
Septem¬
with
all
than
com¬
include the Grants stores in Min-
continuing at a good
pace
in Oklahoma.
Manufacturing
payrolls in the State for 1954
Donald b. Kennedy
of
building
Company's construction budget
$44,500,000 in new
$6,000,000 of this total is for gas
projects which contemplate bringing natural gas service
facilities.
to
increase
office
These
diversified
a
Northern States Power
ber, 1955.
The
programs
During construction of
com¬
1950.
Min¬
classification yard in Minot.
from
released by the U. S. De¬
were
in
for 1956 contemplates investments of
in 1954.
this
of
completed
year
addition
utilities.
the non-manufacturing category,
account
Bank
engaged in the building trades industry benefit,
but it is not until the building is completed and occu¬
pied that it becomes important as a customer for public
1956.
12% in 1955, compared to 10%
Helping
Reserve
those
cluding office and business buildings, retail department
stores, theatres, hospitals, schools and the like, moved
upward at an accelerated rate in 1955. The increase was
paratively large
Federal
capita
1954
with
pared
definite turn
a
During
the
aver¬
average per
Oklahoma's
age.
1955.
to
manufacturing establishments
1% from the same period in
1954 but stepped up rapidly in the last half of 1955 to
show an increase of 10%, bringing the increase for the
year 1955 to 4.6% over 1954.
Indications are that the
upward trend in manufacturing kilowatt-hour sales will
progress
in per capita income gain from 1950
to 1954, with a gain of 30% com¬
1955, showed
of
and
neapolis, the Minnesota Mutual Insurance building in
St. Paul,
the American Life building in Fargo, the
Great Northern Refinery in Pine
Bend, and the Great
down seven-tenths of
Electric
Company
half
sales
continue well into
DONALD
ing
which
93
Serving the West and Southwest
on page
94
i
94
(simultaneous)
for 1955
19 when the demand reached
Dec.
on
1,097,850
During the past
offices
This left NSP with a spare capacity of more
kilowatts.
tions
HARLEY M. KILGORE
HON.
As
by
Ltd.
alarming deficiency. I refer to the many pockets
"depressed areas" scattered throughout
an
so-called
of
of the country. Though we are inclined to
prosperity, it seems to me
many
areas
boast
of
that
nation
no
be truly prosper¬
can
many
:: ;:t\
own.
will be
an
A
under this
why
causes
forced
are
blight? Often, the reasons
beyond the control of the local
citizenry and lie within the realm of
national
Harley
trade
international
and
M.
Kilgore
Sometimes, a natural re¬
depleted or the demand for it will peter out.
Or else a big plant will close down, perhaps to move
away. Another reason is so-called automation, the in¬
troduction of new machines which require fewer work¬
ers to maintain equal or increased production.
Latest figures from the Labor Department show that
these conditions are widespread. Some 19 major indus¬
trial areas are suffering chronic unemployment ranging
above 12%, while the same is true of some 64 minor
areas.
*
%;••
A number of communities in my own state of West
Virginia are on this list, including three major areas, of
which Charleston, our largest labor market is one, and
policy.
is
source
>
Increased
areas.
of
use
machinery
the
in
particularly responsible for creating
displaced coal miners. Coal production increased last
year, yet it was mined by fewer workers in the pits.
coal mines has been
The
nation must
and
men
for
all
action to
take
the
who
others
find
are
jobs for these
repaid for many
of honest toil by being thrown mercilessly on the
unemployment rolls and who live in areas where new
job opportunities are not available.
years
Last July, a number of Senators, including myself,
responded to this urgent need by introducing S. 2663,
the
so-called
"depressed areas" bill, which provides
namely for a $100 million loan fund for new plant con¬
struction; $100 million in public works grants; a De¬
pressed Areas Administration dealing directly with local
industrial development committees; vocational training
for displaced workers; and an added 13 weeks of un¬
employment compensation for workers being retrained.
Hearings
week of
that
the
action
nized
the
the
on
new
bill
opened during the first
Congressional session and it is hoped
prompt. The Administration recog¬
were
will be
for
need
this
of legislation
type
in
when the President received from his advisers
for aid to depressed
program
come
to
the
work but
must be
areas
the
on
of
their
fellow-citizens
for whom
aid
there
are
who
want
successfully, this new year will be
deprivation for many Americans.
year of want and
MAXWELL
C.
The sales finance
involved
off
a
cars
industry.
during the
Another big problem
Prime
money.
interest
loans
to
rates
and
3V2%
on
short-term
commercial
and
paper
bank
are
3%, respectively.
up
The
full impact of these increases will be
felt in 1956 and will be reflected in
earnings for the
year.
Our
business,
unlike many others, can do
very lit¬
tle to pass these increases on
to the
customers
C.
nance
ment
consumer
states
in
in
prices since
King
the
competition
on
a
form
of
higher
the;realities of sales fi¬
preclude
widespread basis
adjust¬
and
our
loan rates are
which
we
mostly regulated by law in the
operate.
Despite these considera¬
tions, the outlook for the sales finance
industry in the
coming year is favorable and we will continue our
fight
agamst so-called "crazy-terms" in
cooperation with the
other leading finance
companies in the nation.
In other
general
4
areas of consumer finance
including
loans, which constitute an important segment
business, there remains an
ever-increasing readi¬
consumer
of our
the part of the
American people to avail them¬
advantages. We expect this readiness to be
reflected in our business for the
ness
on
selves of its
year as more and
more
amounting
This determination is
consensus
a
power
substan¬
very
1955,
over
12%.
effect
a
cf
opinion in
that it represents
industry in
expect
to
the thinking of our
forces, who in turn base their
forecasts very largely on information
secured directly from manufacturers
1955, radio and television
have
an
even
greater
Sherman
the
of
economy
country
can
stations
UHF
plan also
are
75
reserves
VHF
and
173
assign¬
ments for noncommercial educational purposes. To date,
than 20 educational television stations have begun
less
operating and construction permits for only 16
more have
been issued.
The aim of the 1952 FCC order
to provide at least
was
service to all areas, at least one station in the
largest
one
possible number of communities and multiple service in
as
communities
many
possible
as
to
provide
program
choice and to facilitate competition.
The objective
already
been
least
at
of at least
R.
Knapp
in the
area.
The
of
last August
and
manufacturers, par¬
ticularly in the Naugatuck Valley, but also in other
areas, such as Putnam and Winsted.
There was some
question immediately after the floods whether the fac¬
tories, many of which had been completely demolished,
October had
floods
disastrous effect upon
a
station
one
communities, is
in the total
crease
industry and
operation.
the
in
is
as
nationwide competitive system is the
a
Without this
markets.
job,
The Connecticut Light and Power
Company, which is
participant, with other New England utilities, in the
Atomic Electric Company, and is also a member
of the Atomic Power Development Associates, -is follow¬
ing closely the developments in the peacetime uses of
atomic energy; We believe that atomic energy is going
to play an important role in the future economic welfare
of New England, not only in the field of power produc¬
tion, but in the many other potential uses of atomic
energy as well.
The well-developed technical skill of
our
labor force, and the opportunities for educational
Yankee
will continue and television
FRANK
of reservations
and
possibly
institutions
100 markets.
are
used
in
apply
the
on
basis
same
as
other modifications,
five, truly
or
in
created
the
all
three
competitive television
great
bulk
of
the
top
we are
trend which will last
as
catastrophe
far
of
in
the
waiting
money
Pension
us a
various
ting
kinds
as
one
an
can
kind
see
in the
which
anticipated
future,
completely
$700
million
a
large
amount
for investment
of
is
of 465,000,000 tons.
improvement in production,
matched by the improvement in
consumption.
The consumption of
by electric utilities will increase^
coal
about 20% for the year; by steel and
coke industries, about 25%; bv other
industrials,
overseas
but
believe
geared
so
our
that
we
economy
cannot
have another debacle such
in 1929 to
trend
and
is
1932.
for
the
American
something that each
future.
we
down
have
little
however,
decrease
from
this
year
they
ago.
The
Federal Power Commission has estimated that the elec¬
in
generated
power
it
1965
will
estirrated that in
be
a
year
twice
what
it
is
r*7o the elertric power
industry is looking forward to large increases
capacity,
and
general industry will increase with
The export market is another very
bright spot in the coal picture. The use of electric power
steel.
and
power
and also steel production are increasing the world over,
and America is being called upon for fuels to make this
possible.
satisfied by
*
coal.
The small increase in the amount of gas consumed by
is probably partly a reflection of the fact that
the
is
in
Allan P.
reserves
the
past.
of gas are
not increasing as they have been
1954, only as much gas was added to
In
Kirby
reserves
inflationary
is anyone's guess
decide for himself.
a
60,000,000 tons;
but
utilities
had
expect
to
shown
was
economy,
must
can
*
tons of
all of the increase in the fuel demand of electric utilities
again
we
of 337,300,000
coal supplied 21,380,965 tons, oil supplied the
equivalent of 1,189,482 tons, and gas, the equivalent of
369,147 "tons. For the first time in years, almost
How good or how bad this
sonally, I feel that
the
as
Exports
about 135%. ' '
only
another question.
that
will be up
the total
.
10%.
crease,
will, of course, be setbacks
readjustments from time to time,
I
about
consumption in the U. S. from January through October,
295,077,000 tons, or 87%, were used by the eiectric util¬
ities, steel and coke, and other industrials. Railroads
and heating, whicn used 25u.000.0ou ions in
1945, are
There
now
,
the electric utilities increased in coal equivalent 22,939,- ;
594 tons over the year ended Oct. 31, 1954. Of this in- j
more
not
or
to
industry has had severe competi¬
There are some figures that give '
us hope that this competition will not increase as it has *
in the. past.
For the year ended Oct. 31, which are the
latest JiguersAve have, the total consumption of'fuel by
large ma¬
jority of the American people, how
can the trend
help but be inflation¬
ary?
Whether it is a healthy con¬
dition
fields
tion from oil and gas.
in
dollars in the hands of the
and
retail
strong reversal in demand
Since 1940, the coal
of
Trusts, and with
wage increases put¬
constantly greater number of
and
lessened decline
a
and
production
was
The steel
Funds, together with the
large number of dollars in
likewise
more
very
overcame
railroad
The
in
continuing inflationary
a
some
With
economy.
the
The strong
generated will be three times what it is today.
KIRBY
increase in Defense spending in 1956,
with
turn-around.
and
tric
"
■
r
My feeling is that
upsets the
392,u00,000
below 1939), made
of coal consumption in the
give
radio
reservations and edu¬
President, Alleghany Corporation
a
or
electric power, steel, ana general in¬
in
be re-examined
system
no
ALLAN P.
barring
1954,
dustries
today, and
j
in
upsurge
Frank F. Kolbe
the
by
proposals, and
be
can
KOLBE
dramatic
a
lack of
applicants.
four
F.
i948 (reaching a figure of
tons
many
Of
these
nuclear
1955, I predicted considerable improvement in the
industry, and this was borne out by an increase
in production of approximately 18% over a year ago.
The coal industry, which had been declining since
that the concept
and
for educational purpose
replaced
possibly
for
,
broadcasting where there
cational
one
For
industry confronted by
wherever possible
undertaken
be
fertile
a
entire coal
broadcasting will fall short
realizing its potential, with the
area
President, The United Electric Coal Companies
virtual monopoly.
a
this
make
development.
of scarcity
economy
ex¬
a
television services in the major
change, the
that today, with only a few
back in tuil production.
so
are now
possible, its first order of priority. This
as
at least three comparable
of
to
by
area
make the
now
services
however, management expressed
immediately undertaking the
case,
this
because the real deterrent to the develop¬
necessary
ment of
every
in
ceptions, they
substantial in¬
a
-
competitive multiple
communities
faith
of
available to the television
revenues
.
point,
has
areas
objective
decrease in the average cost of station
a
almost
its
largest possible number of
ABC believes the Commission should
third
all
The
realized.
which must await
one
In
advancement
service to
one
substantially
has rolled
that faces the sales finance
industry
is the increased cost of
Maxwell
The FCC
and
and will not sustain itself
year.
in
show
for 1956
increase
tial
KINTNER
industrial
of
estimates
our
sales
' :vr--
generally unable to
compete with VHF stations in these intermixed markets.
lines during the past year, all signs
indicate that the fabulous
buying
spree of 1955 has already slackened
coming
our
im¬
now
automotive
record-breaking number of
the production
role
/W
that
is, of course, inextricably
with the fortunes of the
Although
it is
ing in substantial quantity. For this
reason it is encouraging to note that
reconstruction
shown
stations
business
that
has
With
KING
President, Pacific Finance Corporation
fact
would be rehabilitated and reestablished in Connecticut.
to
jobs. Unless action is
no
the
field
can
overall
by
Connecticut industry makes a
also tne locale of parts manufacture
the
Briefly, ABC has proposed that deintermixture should
new
taken promptly and
a
similar
Congressional session. Our people,
swift to respond to need outside our
borders, must
so
■;
explained
goodly share of name brands,
ex¬
Under the present allocation plan of the Federal Com¬
October
a
areas.
Legislation benefiting depressed
"must" list of the
is
forefront of recovery;
the
also in
munications Commission, Ultra High Frequency and Very
High Frequency stations have been mixed together in a
number of markets. Experience in the past four years
•
minor
nine
is
This
while
of course
affect it for better or for worse.
However, within our
industry, is a problem area which must be resolved if
expansion is to continue in the future. This problem
involves television allocations.
!
local
suffer
to
'•?!;.
billion
$1.2
broadcasting
year in 1956.
the
the
communities
are
•.■■■/' V
The
are
the country.
It has been said that Connecticut in¬
dustry feels the effects of a recession first, and in turn
out
President, American Broadcasting Company
record.
What
Connecticut industry is considered by many economic
as a reliable barometer for business through¬
to about
coming year, it
ugly stain on the nation's
through
Canada
of
KNAPP
R.
forecasters
in both countries
choice of strategic
year through the
sound conditions.
ROBERT E.
li this condition is allowed to con¬
tinue
Corporation
Although auto production will not match 1955, I
1956 to be a very good year and I look for
continued growth of public recognition of the vital
this business plays in the dynamic
economy
of
country—a role the industry works constantly to
A .1,' M'
v
Finance
pect
unemployment, through no fault of
their
October
and
first full year of Canadian opera¬
our
Pacific
under
prove.
hundreds of thou¬
sands of its citizens and their fami¬
lies are
victims of continuing
while
ous
Canada,
We expect to continue to expand
locations
1956, our economic well-being is marred
enter
we
through
and
Thursday, January 19, 1956
.
SHERMAN
phase of our operations.
have grown from 221 branch
we
states
20
during the coming
Senator from West Virginia
U. S.
year,
in
marked the end of
250,000 kilowatts—a reserve of 24.1%.
than
268
to
.
.
President, The Connecticut Light & Power Company
for continued expansion of this
NSP's system peak
kilowatts.
set
concepts of credit usage are developed. PF was a
pioneer in tne field of air travel credit and we look
new
jrom page 93
Continued
was
^
The Commercial and Financial Chronicle
(354)
Per¬
day of reckoning in
serves
expected
1954.
as
are
was
consumed, and in 1955, while
expected to increase somewhat, they
to
increase
Actually, less
at
the
new gas
rate
that
existed
new
re¬
are
not
prior to
has been discovered in each
of the last 10 years than has been taken out. The increase
in
rpsprvps
has
rnmp
frnm
thp rprnmnntinn
nf
,
Volume 183
Number 5460 A
The Commercial and Financial Chronicle
•
95
(355)
fields.
There
are
longer large
no
of
reserves
being
gas
pressed onto the market.
Coal has acquired a new
merchandise
The coal picture at the
present
it has been in some
years.
time
is the
Based
tion
Diebold, Incorporated, is engaged in the
for
including Bank Vaults, Safe Deposit Boxes, Teller's Pro¬
Equipment and Burglar Alarm Equipment; and
in
enjoyed
1955
another
and
1956 to
expect
of
year
expanded
for
of
this
to
sensitive
volume
changes
company
our
will
be
1956
high.
This
in
an
increase
the
in
HON.
U.
have
friendly,
view
us
of
the
this
interiors
warm
which
are
a
New
Presidential
views
I
about
y
instances
H.
H.
Lehman
an
the
hour.
no
even
I
that
minimum
a
housing
excellent
and
estimates
that
its
sales
own
period, increase by 3 to 5%
t..e
over
am
concerned
about
these
things, but I
needs
to
be
the civil rights question.
tions
on a
number of
issue.
But in
the
wage
that
Federal aid to education is
on
our
that
tering
our
own
goal
of
sales
generalities.
Recommendations
for immigration
Refugee Relief Act
are promising, but they
do not get to the heart of the
matter
the bigoted National Origins Quota System,
Action must be completed on statehood for both Hawaii
$1.25
passed
—
and
Alaska—not just for Hawaii as the Administration
Continued
&/wde<yA/amt
will'
steadily, based
constantly offering-
in each of our communi-ties the best in
goods and services.
Our stores located in New
York,
Hospital Trust Company
Brooklyn, Milwaukee, Boston, Hous¬
ton,
Columbus,
Dallas,
Cincinnati
and in
Albuquerque, N. M.; Amarillo,
Corpus
C risti,
Long
View
ani
Wichita
Falls, Texas; Bakersfield,
Member Federal Deposit Insurance Corporation
consumers
.
Pomona
and
Angeles,
Fred
homa
Lazarus, Jr.
Westwcod
California,
City, represent
a
in
Okla¬
good
section of the total market.
cross-
Tr.us,
we
believe, they truly reflect the national picture.
Federated, and we believe, most other major U. S.
department store groups, feel that spring business will
reflect
the
confidence felt
both
by the public,
by
dis¬
tributors, and manufacturers.
We
believe
that
the
strong income and
employment
Ipicture for spring, 1956, will provide us with an
tunity to develop our business in medium- and
grade merchandise.
We feel that
our
oppor¬
better-
increases will
come
not
only in home furnishings lines but also in fashion
goods—men's, women's and children's.
Federated Stores
Member Federal Reserve
Tnerehas been considerable comment in recent
months
the increased amount of consumer credit
outstanding.
Federated has not been uneasy over this situation. Cus¬
tomers in cur stores have been
meeting their credit obli¬
gations
in
an
excellent
manner.
Delinquencies are
extremely lew, for the American family buys with
that
consumer
credit
is
Obligations
Obligations of U. S. Government Agencies
State and Municipal Obligations
.
.
our
conviction
our
that
the
items
sold
there
has
past
in
an
factories kept at
the
it
ere:
months cf 1956 will continue
Over
three
on
years,
a
situation
a
high level.
in
the
It is
first six
satisfactory basis.
prices
of
most
consurqer
stores have remained stable.
In fact,
slight reduction in t"e price of some
items of merchandise and
certainly an improvementUn
the value cf many others.
We now see, however, an
cur
been
indication of
a
small upward
are
change in price levels.
the drawing boards
Houston store,
now
the
on
enlargement of our
Foley's,f is
proceeding according to plan. This program is substan¬
tially greater than that of 1955.
Federated feels that
during
tinue to spend
and that
19i56 tue public wilf-con¬
generously for things it needs and wants,
alfrt, well-managed department stores are the
most suitable
,
15,970,070.18
2,176,500.00
823.121.46
.
Stock of Federal Reserve Bank
'
525,600.00
.
.
.
Other Stocks
414,796.31
Loans and Discounts
Banking Houses
Customers' Liability
Other Assets
.....
on
.
.
Acceptances
.
.
145,225,262.84
.
3,450,000.00
92,744.72
.
881,702.71
.
.
■
$323,341,534~62
LIABILITIES
Capital
.
.
Surplus
.
.
Guaranty Fund
.Y
.
.
■
.
♦
,
,
«
,
.
.
.
$ 5,000,000.00-
.
.
,
.
10,000,000.00
2,520,000.00
•
■:
.
Undivided Profits
.
.
.
!
5,143,335.07
$ 22,663,335.07
289,908,603.27
Deposits
.
.
Deposits on Securities Loaned
Acceptances
6,596,000.00
$93,794.72
.
Less Amount in Portfolio
Other Liabilities
»
,
1,050.00
.
92,744.72
4,080,851.56
.
a
Several branch stores
and
96,714,521.61
.
.
Other Bonds
S 57,067,214.79
.
.
.
care.
important t:ol by
which the American standard of
living is improved and
employment in
....
U. S. Government
are
on
feel
.
RESOURCE S
Cash and Due from Banks
continually adjusting our inven¬
tory position to keep it in realistic line wit.1 our sales.
We believe such action is important because
it allows
us to have
fresh, new merchandise on hand at all times.
We
System
Statement, December J7, 1955
Village, Los
and
vehicle of
mass
distribution
providing the
$323,341,534.62
United States
Government
Obligations and Other Securities carried at
$19,802,318.88 in the above statement
powers, to secure
public monies
as
unsettled question
reform and for improvements in the
period
expand
an
which is dealt with by the President in nothing but glit¬
to
was
If the President's recommenda*
followed, we are not likely to see action this
session either. Appointment of another commission fore¬
tells only further delay and refusal to face up to the
are
survey of cur own nine major
divisions and their branches
gives us
to
as
on
am
great many vital issues. And I am even more disturbed
because of the character of the recommendations in the
of the Union Message.
Nothing 'was done about
A
continue
just
act at all
State
of 1955.
confidence
the
a
will, during
same
for
program
what
last year.
law
a comprehensive housing bill
These two measures, taken together, comprise
consider
concerned about the failure of Congress to
done—during
minimum
The
expect to introduce
I
President, Federated Department Stores, Inc.
Federated Department Stores believes
prospects in the
U. S. retailing field for the first six
months of 1956 are
this
popu¬
It is my hope t1:an Congress will approve it be¬
fore the end of the session.
;
raised the minimum to only $1.00.
My proposal called for an extension of coverage to
9,COO,000 people not then included. The law made no
LAZARUS, JR.
our
nation;
was
crease
Sen.
of
has been making for 'three years..
It
long-term program which is essential if we
to meet the housing needs of our citizens. It makes
provision to meet the housing deeds of certain seg¬
and I
legislation en¬
completely inadequate.
The new minimum wage law is one
example. I sponsored a bill to in¬
Our 1955 sales volume exceeded 1954
by approximately
and we now expect that 1956
will show a 10% to
20% increase over 1955.
members
predict
be
measures
acted
20%
older
year.
what
must
many
possibility that our production in 1956 will
be limited not
by the demand for our products but
by
the shortage of metals.
the
election
cannot
Congress took action
important
a
FRED
York
the 2nd session of the 84th Congress.
so.
the
of our population such as the
elderly. Senator
Sparkman and I, along with several other members of
the Senate, introduced a bill for this
purpose on Jan. 5
LEHMAN
The
done—what
many banks planning to change their
interiors in the year 1956 who would
otherwise not have
There is
no
will be accomplished during the pres¬
ent session, I have some very defi¬
nite
than
ments
H.
Although
the
are
is
for
program
calls for
problem is made
complicated by the fact
more
less
housing needs of
Administration
our
G. v. Leece
from
summer.
far
was
to meet the
the
say at this early stage of the session
what will be accomplished before
Congress adjourns this
to
construction
number needed
The President's message contains recommendations for
same
kind of token public housing program the
us
impossible to
lieve, resulted in
done
housing
what
is
•
lation.
It
Diebold, Incorporated,
year.
Senator
-
our citizens.
No action was taken on proposals intro¬
duced by myself and some of
my colleagues to provide a
shortly.
building design. These new prod¬
extremely successful and have, we be¬
been
for
HERBERT
S.
current trend in bank
ucts
year
have been asked to discuss the
legislative prospects
for 1956. I find this a
very difficult question to answer.
introduced in the latter
part cf 1954 and the early part
of 1955 a
radically new design in Bank Vault Doors and
related equipment. This
equipment is designed to com¬
the
demand
authorized for
minimum
I
outlook,
delivery, leads
optimistic
very
coming
plement
is looking
satisfactory
intention to make rather
of
orders for
a
very
is
together with the fact that we pres¬
ently have a substantial backlog of
take
studies
units
our company
a
for
including specific
Congress will reconsider
example of inadequate legislation was the
housing law The public housing program was extended
but only for one year and the number of
public housing
products coming from the four gen¬
expenditures being spent
nationally for capital equipment. The
present outlook is that such
expen¬
Raymond C. Koontz
further
recommendations
Another
eral sources mentioned above.
business
ditures
is
be
sales
volume.
very
drilling and produc¬
also
made
groups or individuals.
I hope
the question at this session.
directed toward
production machinery to prepare
successful
a very
surveys
outlook,
to
In his State of the Union Message,
repeated the general recommendation he
made last year that
coverage be broadened, but he has
substantial investments in the
way of
ment.
The
change in coverage.
1956.
It
wide line of Office Systems
Equip¬
and Record Protection
Equip¬
ment
in
and
mining, industrial and contract¬
forward
banks,
tective
We have
on
ing projects,
manufacture
protective equipment
year
urban
the President
petroleum
into
a
both
never
brightest
RAYMOND KOONTZ
of
in
G. V. LEECE
President, Diebold Incorporated
line
wanted
President, Gardner-Denver Company
the
complete
service
„
competitor, atomic power.
Technically, the problems have been solved; when
they
will be worked out
economically, no one knows.
or a
and
suburban areas.
are
pledged to qualify for fiduciary
required by law, and for other purposes.
HEAD OFFICE
15 Westminster Street,
Providence, R. I.
on
page
96
96
Continued
from
it
will
tell their own story of how the paper and paperindustry has steadily expanded to meet the needs
of
our
dynamic economy.
The
backlog of
orders
throughout the industry is in general quite satisfactory.
With this basis to work from—and providing the pre¬
years,
95
page
board
The Administration has not
has recommended.
what
in
recommend
the
indicated
of changes in the
way
But I certainly intend to fight
well as other liberaliz¬
Social Security Program.
for the extension of coverage as
dictions
lowering the retirement age for
women,
the payment of disability benefits regardless
of age to totally and permanently disabled persons if
they, before their disability, were covered by Social
Security, and the payment of benefits beyond the age
of eighteen in the case of disabled and handicapped
reasonably correct—it is entirely possible
that the production of paper and paperboard may again
set a
new
record in 1956.
Falling short of that, we
should at least come close to equaling the record year
our industry has just experienced.
ing provisions such
economists
of
economy
as
President,
witn such
and tne Hells
disaster insur¬
ance, and aid for economically depressed areas.
Action
in these fields is urgently needed.
1
It is impossible to adequately discuss all of these com¬
plex issues in a limited amount of space, but taere are
several things about all of them in general that can and
public power in connection
include
There
projects as the Niagara power project
Canyon Dam project, tne farm problem,
These
the
is
likelihood
good
LEWIS
Hawaiian
tourist
facilities
have
almost
accommodations
Travel
doubled, and
travel
agents on
the
Mainland increasingly
ommending Hawaii
as a
good alternate vacation
issues.
new
have
They
jobs in the process.
are
continuing cam¬
the fact that the company itself has spent
on
postwar expansion to date, and has
paign, and in
$272 million
additional
an
The
industry
petroleum
is
future
for
Its
diversification
with the record
sion in
perity
LESLIE
Manager,
in which
new
Our
industry
of
production
the past five
is:
"Can
new
do
we
another
as
omy
we
see
those of our own
anywhere
holds
true
line
the
along
whether
look
we
in
for
our
those
industry.
in
warehouses, on wholesalers' floors, on printers'
shelves, or in consumers' offices and warehouses.
(3) The increased demand for advertising and sales
promotion literature which occurs when we have a
competitive market for sales. For example, even though
.our over-all economy declined slightly in 1954, the paper
and paperboard industry established a. new production
-.record in that year.
This record was directly related
to an
increased
use
of paper, needed
to produce a
V
.
Increased
production of
tically impossible without
:.y-
.
.
Steel
1955.
similar increase in the
..
tons.
.
.
reforestation
industry's cutting methods and
is strongly indicated by this
Despite the 10% increase; in wood pulp
our
programs
glowing faqt.
production, the United States Forest Service reports
that, in 1955, we had for the. first time in many years
a
net
increase in growth over cutting in our
cdilntry's
This increase is estimated at
3,175,000,000 cubic
forests.
feet.
'
One
!
.
.
•
.
.
.■»•*/•"
pulp
a
board.
smaller increase
This
fact
world markets
in exports
reflects
both
a
of paper and
growing
by the industry and
an
paper-
interest
increase .in
credit
restrictions
of
Step
1958
•Northeast•to
the
already
Ohio's
area's
-Turnpike-
the
Also
prospect
positive
factor
the
East-West
Conneaut-to-Cincinnati
increasingly
attractive
to
in
op¬
portunity to develop; these markets. Exports of wood
pulp increased from approximately 162,000 tons in 1953,
to more than
400,000 tons in. 1954. and on nip to some
area,
meet
the
a
generator, to be
plans
for
a
at
the
located
miles west of downtown Cleveland.
power
The
new
^00,000 tons during the past year.;
imports showed
Canadian
a
further
a
While our total
increase, this was largely in
These facts,, taken
together, give
modest
pulp wood.
indication
of
the
great extent to which the
would must look to the
United States and Canada to
meet growing requirements for
papermaking fibers.
New production
records, set in four of the past five
Of
the
world's
most
efficient
electric
units, will go into service, by year-end
carryover.
re¬
more
east
of downtown Cleveland—where
a
and
With
will have
a
system generating capability of
,
than
32%
over
increase of
the
1950-54
Roy G. Lucks
products reached a near-record 50,052,000
above last year and even 5% above the big
This has in large measure offset the effect
crop losses.
»
Two other major canning crops are corn and peas,
both concentrated largely in the midwest. The total U. S.
15% over 1954, but is not out
recent years. As a result,
while Dec. 1 stocks of peas are uo from the previous
pea
more
had
tomato
of eastern
of
completion of the two generators, the company
than
cases, 35%
1952 "pack.
total
unit goes on the line early in 1956.
areas
average.
As
a
result,
California's 1955 pack of tomatoes
generator,
240,000-kilowatt
eastern
five-year
generating
$39 million. Cleveland Electric also is expanding
generating capability of its Eastlake plant—20 miles
some
ceeded 2,000,000 tons, an
cost of
the
While
short tomato crops last year, Califor¬
nia's 1955 canning tomato crop ex¬
turbo¬
a
with which the indus¬
months, we should go into the 1956
operating
season
with a normal
plant, 20
1958 at
cling
August, and if it continues to move
at this rate during the next five
.
one
year
try entered the 1955 packing season.
The pack has been moving well since
;
Avon
past
low carryover
in
industry
250,000-kilowatt
•
,
Corporation
The 17,923,000-case pack (24/2^ equivalent) of
peaches which California achieved
this
past
season
was
particularly
welcome because of the abnormally
anticipated electric needs of its service
announced
LUCKS
California Packing
has been a generally satisfactory one
vegetable canning industry, both from
producing and a marketing standpoint.
The
Ohio
The Cleveland Electric Illuminating Company
cently
continued
for the fruit and
and commerce in the years to come.
To
G.
ROY
President,
Turnpike.
American
participation in the chemi¬
petroleum industry, and the prospects for the
growth of The Texas Company.
•These plus values will make "The Best Location
in the
Nation"
our
economic
the
significant contributors
are
and
'\
of these plans reflects our optimism about
vigor of the country, the future of the
The scope
continued
a
both here
nuclear research activities and construct
our
Production of synthetic rubber will be in¬
creased, and we will construct plants for the manufacture of additives and anhydrous ammonia.
of
proving
growth.
future
and
is
operations
"'-Vf''''
up
cal industry.
are
approaching completion of the St. Lawrence Sea¬
in
nparketing
our
Intensify considerably
,
way
facilities to increase ca¬
improving the quality of our
facilities for this purpose.
new
1956, is the latest
link in the area's chemical
industry chain.
The
the development
refining
to
Expand
can
into production in the fall
go
and
abroad.
in
reached
steel-makers'
on
the company will also:
additional
continue
manufactured products.
pacity
important part of Northeast
an all-time high in
an
economy,
evidence
>
of
the important factors in the stability reached
by the paper and paperboard industry in recent years
is found in the sharp increase of
exports of wood
and
to
....
_
Install
be expected to increase along Northeast
Ohio's "Chemical Shore." The Union Carbide and Carbon
Corporation's $31 million titanium reduction plant, due
*
.
pace
have concentrated
we
extensive inland holdings.
our
This year
'1 ■?'
production, long
As
Activity
no
j.
■
The soundness" of.
record
now
in the offshore tidelands.
local total capacity.
pro¬
Nineteen fifty-five production of
exception to this rule—the record
production of slightly more than 20,000,000 tons ex¬
ceeding the previous 1954 record by a full 2,000,000
pulp proved
if
in
However, in 1956, we
intend to accelerate considerably our drilling operations
of
recogni¬
location, Republic Steel Cor¬
poration and Jones & Laughlin Steel Corporation an¬
nounced
major expansion programs during the year.
The Republic project will add
732,000 ingot tons of new
capacity, and the Jones & Laughlin program 400,000
ingot tons. This represents a 29% increase in our present
duction of wood pulp.
wood
higher
even
million
improve the company's reserve picture.
time
Until
tion of the area's strategic
paper and paperboard is prac¬
a
climb
N.V:;
Ohio's industrial
greater supply of business messages used by manufac¬
turers and retailers in an intensely competitive sales
market.
will
rate
eased.
$325
crude
same
Ohio, with 17,400 units completed or started
during 1955. The coming year should witness an equal
amount of activity, and there is a good chance that the
mill
record
a
This will enable us to maintain domestic
production at a level of 60% to 70% of the
total crude requirements of our refineries, and at the
net
Elmer Lindseth
its
at
invest
ing operations.
this
concen¬
continues
will
Texaco
expenditures. For the five-year period, 19561960, we will invest more than $lJ/2 billion to expand
and improve our facilities all along the line. More than
half this money will be devoted to exploration, and drill¬
Northeast
This
inventories
construction
management
1956
In
in Cleveland, and this ultra-modern structure
unquestionably will attract others.
Home
supply, we are putting tre¬
development. Great em¬
capital
quarters
Oonald S. Leslie
evidence of excessive accumulation of inven¬
tories
service
ap¬
now
growth.
In keeping with Northeast Ohio's
growing commercial
importance is the fact that early in 1956 ground will
be broken for a $17 million,
400,000-square-foot office
building on downtown Cleveland's Public Square. Many
major corporations already make their national head¬
shapes up as
excellent year for the econ¬
a whole.
(2) The fact that
no
and
10%.
is' just
personnel to carry the increasingly
responsibilities which come with
capable executive
heavy
expansion totaled
million for the
industrial
over
phasis is also being placed on the human side of our
business—on the training and development of energetic,
tration
reached
782,000 last year.
High-level employment is a long-term characteristic of
the area, reflecting the skill as well as the size of the
local labor pool.
1956
that
—
domestic
products
4.5%
mendous stress on research and
people employed to
and
almost
industry
whole broad field of energy
$120
operate,
commercial
(1) The opinion of leading econo¬
industry
Commercial
The number of
prospects are excellent that
This optimistic outlook is
based on these three premises:
mists—including
this
some
$400
million on
plants and additions within the
manage,
can.
we
are
today
1700-squareothers
are
being
in
year.
production was
greater than the
set in 1954.
has thus established
records in four out
years. The question
it again in 1956?"
The
*
expan¬
base of pros¬
classifications
additional
an
in¬
about 1,100,000 tons
previous record
solid
a
1955, Northeast Ohio manufac¬
invested, or committed for
area.
total
The
dustry.
the
of
1956,
of petroleum
proaching the period of its greatest
growth, .diversification and service.
The development of atomic power
A. C. Long
should produce new uses and in¬
creased demand for petroleum prod¬
ucts.
To maintain The Texas Company's position in the
coupled
investment,
Printing papers, tissue papers, and fine
papers, all shared in this record by
establishing new production highs
segments
industry,
turers
tons.
own
and
local commercial and industrial
area,
In
production of paper and paperboard in the United
States reached an all-time high of approximately 29,-
their
business
and
annually as industry prepares
for completion of the St. Lawrence
Seaway three years hence.
the
in
of
Our
which to continue building in 1956.
on
mile
Ilammermill Paper Company
700,000
to
respect
increase
increase of about
added
year
best
1955,
LINDSETIl
Two-thirds of America's 3500 basic
product
calendar
L.
1955, gives Northeast Ohio
manufactured
a
With
*
should
President, The Cleveland Electric Illuminating Company
productive sessions we have had.
concluded
the
able future.
\
some
high level business activities and the growth in the
ELMER
leaders of both parties. If this is done, the
Congress can be one of the most
just
in
reaching about 8,660,000 bar¬
rels per day.
Demand among the
free foreign
countries should run
close to 6,240,000 barrels per day, an
2nd Session of the 84th
have
is
continue to increase in the foresee¬
tourist travel market.
However, it will require full cooperation from Adminis¬
tration
officials, along with firm direction by Con¬
We
whole
a
keen at every level of business. Prospects for
growth and development appear to be good, and
there is every reason to believe that
demand for petroleum products will
very
consumption
and put politics aside for the moment.
General
as
shape it has been in for years, even though competition
:
and
C. LONG
ued
has shown in the past how much it can
accomplish when it puts its mind to it. It has shown
how much can be done when its members concentrate
President
construction
increase in employment in 1956 over 1955. Inter-island
air travel should increase moderately, reflecting contin¬
Congress
DONALD S.
for
President, The Texas Company
action.
gressional
million
$190
AUGUSTUS
rec¬
area
tain the current high level during most of 1958 with
talking about them—to stop appointing commissions to
the need for action—to stop making surveys of
the situation.
Tne time has come for strong positive
the job at hand
the future of Northeast
in
best expressed in this
Business conditions in the Hawaiian Islands will main¬
study
on
.
„
,
Electric's faith
Cleveland
Ohio is perhaps
ida, the Caribbean, and South America.
before
come
time and time again for action. They have
been studied and
worked over and talked about on
numerous
occasions.
The time has now come to stop
Congress
Cleveland Electirc in¬
"Best Location in the Nation" area de¬
velopment campaign, American] industry has invested
more
than $2!£ billion in new and expanded facilities
within Northeast Ohio, creating well over 200,000 new
its
the
to
large number of
a
1956
activities extending through 1960.
available in every price category.
are
Thursday, January 19,
.
postwar years since
10
scheduled
Airlines
that
the
In
augurated
people who previously have spent time in Europe, Flor¬
not
are
of
state
.
.
2,000,000 kilowatts at its four power plants—-2V£ times
its total installed capacity at the close of World War II.
Hawaiian Islands will continue to grow in 1956 at about
the same rate as it did in 1955. Since Jan. 1, 1955, hotel
be said.
should
over-all
the
ARTHUR D.
considered during the present
Other issues that must be
to
as
are
children.
session
Chronicle
The Commercial and Financial
(356)
pack for 1955
line
year,
with
they
was up
those
are
of
other
still below Dec. 1, 1953 stocks* Movement
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(357)
of canned peas is so far 3%
above that of the previous
Canned
corn,
the other hand, is
on
industry-wise, following
Our
Dec. 1
own
position
in
short
California
crop.
DEL MONTE Corn is in good
on
demand
facilities
warehouse
tion
Addi¬
year.
canning facilities have been acquired in Indiana
parts of the country.
been
expanded
strengthened, and
number of
a
have
we
operations, the majority of
we
anticipate coming into
E.
nearly
or
major DEL MONTE items.
MacDONALD
Household
Finance
We
Corporation.
made
over
two
million
amounting to over $750 million. The
average size of these loans at the time they were made
about $365.
was
with
We ended the year
1,490,000 accounts
over
on
our
books, totaling about $450 million.
unpjaid balance of these loans
about $300.
This repre¬
The
aveiaged
sented
the
an
increase in receivables
books
of
have
now
16%
the
for
offices
738
on
We
the
year..
serving
families of 512 cities in 35 states and
all
provinces of Canada.
These records
number
of
productive
be attributed to
markets
1955,
constructive
the
of
advantages
During
can
factors:
the tapping
through
of
the
continually wider public recognition
;
the
of
of
use
credit.
95 new offices.
Household opened
Of
Georgia
credit legislation in
these, 69 were in cities not previously served.
Kansas
and
passed
consumer
new
1955, making entry into these states
able.
possible and desir¬
Practically all new offices, other than
were
those in
new
opened in, or adjacent to, suburban shopping
of
the public, primarily, under
serves
laws
loan
small
originally
the provisions
recommended
by
the
Foundation in order to provide consumers
Russell Sage
with adequate
Our
company,
entering
1956
for
time.
some
fidence in
credit at reasonable rates of charge. These
of such licensees.
tinuous supervision
1956
-
for
as
looks
the
Either by statute
like
Farm
a
good
for
year
Equipment
Minneapolis-Moline,
Industry, and for the Nation
whole.
a
MacFARLANE
President,
well
as
with
as
There
industry
our
optimism
more
was
as
than
With
have
we
had
noticeable increase of
a
1955, and 1956 promises to be
more
the
to
S.
Northern
general
observers
whole, is
a
business
stay
Northern
MACFARLANE
Pacific
at
Railway
conditions
heavy volume of traffic.
up,
to
hold
much
chiefly
'offset
or
How
extent
In
ever,
increase
in
more
freight
traffic
rates,
spite of these problems, how¬
customer has much
fi¬
budget for new
equipment and improvements in 1956
our
nancial
has been upped $4 million over
to
in the expectation the nation's
strength. He not only is able
himself and his family
off his land, but has a strong credit
position and holdings in farm prop¬
support
erty of great value.
It
to
is
confidence
for the
his
business, despite
and he is well
equipment
growth
plays
reducing
in
provision
for
keeping
W.
in
C.
MacFarlane
is
increasing.
time
50V2
ore
He
for
also
must
both
make
himself
his family—to be in tune with his neighbors in
elsewhere.
-
is
It
estimated
million
that
within
alone who is relied
to
feed
habit of
next
and
20
years.
will
disappearing in
years
to
line
new
farm
of
It is the farmer
time.
like
Also,
the
bringing the farmer
are
the
are
Uni-Balor,
new
MM
new
these
new
farm
tractors
and
that
Minneapolis-Moline is
confident
by farmers and
Our
1955
users
ahead
far
are
their
of
units.
the
wide
proximately
12%
34
with
than
more
noticeable
Williston
steady
a
Basin
{
on
the
at the
3,000,000
acres
production
end
of
of
because they went
1954.
to
field,
to
a
10%
refineries in
the
Wyo.,
Midwest.
of
increases
Continued
\
are
being cured of
year.
More and
State, Municipal and Other Securities
cancer every
more
Loans and Discounts
people
going to their doctors in
are
time..
,
....
.
But the tragic fact, our doctors
cer
us,
is that
death is
twice
as
a
every
third
•<
,
;
.
.
.
.
.
773,070.61
4,382,206.73
Other Liabilities
269,478.29
Reserve for
2,790,439.45
Income
1,428,320.26
677,333.88
.
Contingencies
$347,981,301.86
368,000.00
400,000.00
.
Capital Funds:
Capital Stock.
.
$11,500,000.00
....
13,000,000.00
Undivided Profits
Total
can¬
.
on
Payable in January
Surplus
sets
.
.
.
Accrued Federal and State Taxes
..
.
Capital Funds
.
3,560,796.79
.
.
.
$381,706,192.24
28,060,796.79
$381,706,192.24
could be saved.
CHAIRMAN—Lester E.
Shippee
,
PRESIDENT—Raymond C. Ball
call the American Cancel
Society office
write
your
.
r
For the facts of life about can
cer,
49,509,406.03
152,051,213.85
needless death...
many
%
I-
Dividends
Banking Houses
..'V
tell
.
'
Accrued Income Receivable
Deposits
Unearned Income
Many thousands of Americans
to
The Connecticut Bank
nearest you or
"Cancer" in
care
American Cancer Society
and trust company
of
Member Federal
local Post Office.
I
Deposit Insurance Corporation
outlet
to
production and further development in the Basin.
LIABILITIES
76,277,663.09
,
new
ap¬
)
$ 98,443,153.64
.
connecting with
Midwestern markets is expected to
encourage expansion
RESOURCES
U. S. Government Securities
is
interest, recently
This
%
;
was
which
16-in. crude oil line from eastern Montana
Guernsey and Fort Laramie,
lines
accept¬
a
and trust company
-
wells,
The Butte Pipe Line
Of Condition December 31, 1955
Cash and Doe from Banks
con¬
in the Basin,
86
yA/""""'"""'
<yr'
Statement
v':, V;vV
should
At the end of October,
pace.
in which the NP has
completed
a
of industrial power.
1954,
over
equipment pool will
the growing transpor¬
territory.
gas
participating in
With
farm-machinery sales volume increased
pur¬
cars.
en¬
embodying
of
70-ton
Pacific, which has mineral reservations in¬
cluding oil and
company,
power
machines
1,000
our
serve
development in the
the Northern
is
units
implements, and advanced
great number of ideas
ance
Uni-Farmor
200
V
Oil
•
Powerlined "445" tractor at this
new
there
our
and
of
$2,250,000 will be spent for
mechanical refrigerator
ucts.
dynamic
a
Minneapolis-Moline
boxcars
new
capacity to
our
construction
the
activity, which outperformed the most,
optimistic estimates in 1955, is holding up and we antici¬
pate a continuing demand for movement of forest prod¬
surpluses have a
of adverse crop conditions,
implements.
a
fleet of 100
tinue to proceed at
research
for
all-steel
Construction
failures, etc.
Years of
a
tation needs of
increase
calls
An additional
cars.
strengthen
people—and
our
project
double-door
These important additions to
.
industry
to produce the food and fiber
upon
clothe
and
population
our
the
foot
chase of
and
200
Robert S. Macfarlane
pro¬
financially strong.
farms are larger, and
The farmer's heed for cost-
leisure
more
area.
This
gram.
him
today,
high.
are
machines
continued
During the coming 12 months, the
of the role that modern up-to-date
farmers
farm labor costs
be
Northern Pacific will spend $13 mil*
lion to add 79 more units to its diesel locomotive fleet
and will launch a $91/2 million freight car building
price slump,
any
aware
fewer
are
good return
a
will
development in our terri¬
which
is
fundamentally
a
tory
farmer
farm machinery. The efficient farmer
make
there
economic
business without modern
continues to
1955
econ¬
will stay in high gear and with
omy
•
uneconomical
his
run
or
Northern Pacific's
The Connecticut Bank
their doctors in time
earnings
how
upon
rising operating costs, due
to increased wages, can be
by getting either
an
i"
to
well
both.'
I
..
most
however, will depend
considerable
a
by
fairly high level during 1956,
railway is looking forward to a
will
favorable,
Company
expected
a
Pacific
continued
con¬
barring such hazards as drought,
floods, etc. Of course, there always
are
disturbing factors with us in
agriculture. Farm surpluses and un¬
require licensing of lenders and provide for con¬
laws
C.
gineering developments in industrial
centers.
HFC
tion of farmers' needs with
ing staffs wherever possible.
ROBERT
W.
coming out with
.
cities,
field problems that may arise and instant integra¬
our design and manufactur¬
any
satis¬
field, that when
future, they are will¬
our
unwilling to
There
opening of a substantial number of
new offices; a generally higher level
of business activity throughout the
United States and
Canada; and a
E. MacDonald
H.
of our products.
Our service organization
also being enlarged to insure immediate attention to
is
probability will continue to be with
Corporation
instalment loans,
a
distribution
certainties about support plans in all
The year 1955 has been an eventful period for House¬
Finance
at
We expect sales to continue to mount
obligations.
assume
us.
hold
to
ing and able to assume financial commitments. When
there is considerable unemployment and when
consumers
view the future with
misgivings, they are
to predict
year
the 1956 producing season in June with normal
President,
remain
1956, and we are expanding our sales organization
provide stronger dealer representation and better
President, Minneapolis-Moline Company
DEL MONTE packs have
our
date, and
normal supplies of most
H.
It is axiomatic, in
getting
are
the final results of 1955-56 marketing
been moving well to
also
have confidence in the
consumers
foreign markets.
Although it is much too early in the
with any accuracy
in many
credit will
consumer
Export sales.
in
Our domestic marketing organiza¬
has been further
back into
for
factory levels.
Packing Corporation has made substantial
along several lines during the past
progress
and
in
business
activity is expected to remain at a
high level in 1956, with continued high consumer income
and little unemployment.
Under such conditions, the
supply
unusually short 1955
an
General
balance with demand.
tional
through regulation, the maximum maturity of loans
limited, usually to 24 months or less.
cr
is strictly
season.;
97
Hartford, Connecticut
Member Federal Reserve System
on
page
93
98
(358)
The Commercial and Financial Chronicle
Continued
from
which
97
page
l.
s.
mackersy, m. c.
President, Imperial
To be able to forecast with any
during
degree of certainty the
can
war
whether
certain
be
never
cold
hot
If
the
some
remain
part of this world.
are
can
one
business
In order to
cations
ment
forecast,
which the
must review and all the indi¬
one
that 1956 will be
are
and
a
year
in Canada
expansion
and
The recession of 1954 would
serious and recovery slower but for the
behavior of consumer spending in Canada
in the United
1954 and grew even more
vigorously during 1955.
sales of
months
has
been
Canadian
new
the
sharp drop
securities
investment in Canada in 1954
in New
was
York.
Direct
exceeded only
by that
of the year 1953.
retirement
of
In the 12 months ended June 30, 1955,
outstanding bonds exceeded new issues
with the first half of 1955
showing Canadian bond sales
million, while in the same period in 1954;
new issues totaled $267 million.
Mainly for this reason
the total long-term capital import in the first half of
this year was $252 million below that of the first half
abroad at $125
1954.
the American
the
first
half
during that period are
usually relatively low and Canadian imports rising. The
reduction in the long-run capital inflow would have
produced a much stronger upward movement in 1955
had it not been for the
unusually large short-term capi¬
tal
inflow
probably
which
welcome
tween the United
count
on
should
Among
partly
the
the
be
it.
Most
Canadians
re-establishment of parity be¬
Canadian dollars as a dis¬
States and
New York funds
not
replaced
seems
assumed
that
abnormal
it
will
but, however,
not
again.
grow
forces
contributing to rapid expansion in
Canada are a high rate of population
growth, the ex¬
tensive
development of Canadian natural
resources,
great investment in manufacturing, power and
transpor¬
tation
facilities, and the maintenance of Canadian
exports.
The
current
high rate of
population
growth
creates
expanded demands for consumer goods, houses and com¬
munity services which stimulate business but this
popu¬
lation
growth
ernments
also
with
confronts
most
speedy solution.
Canadian
difficult
municipal
problems
which
need
comes about
first in the lower age
groups, the labor force is not yet
growing as fast as the population.
Until such time as
those now young will
begin to join the labor force in
large numbers, there is
a
particular need for immigra-'
tion in Canada if the number of
workers is
the current rate of national
of
the immediate
to grow
as
development requires. It is
future, however, that a large number
immigrants could be most readily absorbed and
would
contribute most to Canadian
The
vigorous
sources
development
continues in
ing the last
national
a
most
of
production.
be
gratifying
manner
and
re¬
dur¬
the St. Lawrence River
power and sea¬
way project has made good
progress.
Canada promises
shortly to be the world's largest producer of
year
and iron ore, a comparative
scene,
has had
a
dian
product,
and
zinc
was
countries
newcomer
on
the Canadian
tonnage produced. The
nickel, which is a peculiarly Cana¬
and continues to be insatiable.
in Canada increases
for the former
addition to all
ized
our
production
demand
uranium,
meteoric rise in
world demand for
the
it
Copper
steadily with
outstripping the supply. In
this, the needs of other highly industrial¬
give
ample justification for the further
expansion of these industries and of
Canadian export
capacity.
Canada is most fortunate in
the
having
men
mining industry
will
surface
manufacturing
natural
with
resources
with all the wealth that
of the ground yet to be
Under
to
do
these
and
grow
circumstances,
to
prosper
across
this
country,
of
is
the
not
ments
issued
l.
Harvester
appraisal of
examination
an
Company
journey
a
of
time
a
year
where
we
are
start
we
better
the
than
in
1954.
year
sales, found
1955
during
with
for
ume
the
the
consider
you
the
of
the
Actually,
year.
state¬
gen¬
year
downward trend in
trend
upward
showed
year
of
The total vol¬
some
in¬
but not nearly in proportion
increase, of other industries.
There is nothing new, about this
situation, and it is my belief that
crease,
to
the
of it
most
be traced to the fan¬
can
tastically high tax still levied on
liquor. This has resulted in an alarm¬
ing
increase in bootlegging. After
all, what other commodity carries a
tax greater than the retail vaiue of
the merchandise
itself?
have been obvious.
few figures:
The
Let
_.
„
..
„
Thomas F. McCarthy
a
Illegal stills seized by Federal agents alcne
during the government's
were
results
recite
me
fiscal
years,
ending June 30,
follows:
as
June
30,
1953
June 30,
June 30,
1954
10,697
11,266
1955—
—
12,509
ing figure of 22,913. Yet, according to the records, arrests
accompanying these seizures amounted to only one per¬
for every two stills seized.
son
It is estimated that the American
taxpayer was robbed
of at least $330,000,000 in
by the criminal moonshiner
period.
One should also bear in mind that there is
tion.
the
no
way of
of illegal stills which defy detec-
industry is alertly
business but
our
pretty good
year. Of course, there was good, stiff,
and ever-present competition.
But
arouse
that has become the normal
tion
a
the
selves in
I
'
-
Our
re¬
thing.
when
months
Annual
estimating the number
and especially
handle most of our
who
two
case.
most other industries.
we
industry,
dealers
Co., Inc.
evaded Federal taxes alone
during the first half of 1955.
This actually amounts to more than three
times the total
value of ail the automobiles stolen
during the same
ago,
our
show that
about right in that feeling.
Our
tail
15%
for
&
Illegal stills seized by Federal, state, and local govern¬
ments for the calendar year of 1954 reached the astound¬
McCaffrey
any
especially
last
the
providing Canadians tackle
so
International
At this
aware of this serious threat to
thus far to have been unable to
seems
general public
endeavoring to
in the
sufficiently to interest them¬
secure a tax reduction. A reduc¬
to
tax
realistic figures would take the high
proiit incentive out of bootlegging.
'
Another problem still facing the
industry is posed by
competition is good.
.
The
sales
volume
in
decline
prices.
That
are
equipment
increased
further
and
farm
of
1955
in
despite
farm
should
the law
a
to
commodity
cheering
be
a
John
reassuring factor for us, for thsre
many indications that the decline
which has been
under way
for several
L.
in
McCaffrey
farm
years
prices
have
may
about spent itself, and that
any further decline will be
of lesser extent. We must bear in mind that the
decline
in total farm income has not been as
great as
many
be
would
led
to
believe, and that the total
shared by fewer farmers.
income
is
The trend of farm
income, of course, is important in
business and will continue to be so. But I venture
to suggest that the proof is in the
pudding, and in 1955
our
it
not
was
the
There
our
a very general
feeling in the United
agricultural economy should share in the
general
prosperity of tlje nation. There seems to be
acceptance of the fact that it would not be wise to allow
agriculture to lag behind other segments of our
economy.
The
big debate is over the method or methods to be
used in improving and
stabilizing the farm economy, and
unfortunately there is widespread political difference as
to methods.
these
sincere and
And while
many men are working for that
feel confident that the farmers
of
helping themselves, too.
Just
as
any
will
producer of
be
sal¬
a
commodity must do, the farmer is seeking better
to
ways
most
produce
a
farmers have
better
product
to
come
at
lower
cost.
And
the
conclusion, under such
circumstances that the best and most
profitable step they
can take for lower
production costs is to get the maxi¬
mum
use
and
benefits
from
modern
farm
machines
of
improved design and greater work
capacity.
■"
I
think
our
industry
that fact.
attribute
can
The machines
our
that sold
best
in
1955
those which offered the farmer the
greatest labor
saving and the maximum work capacity in keeping with
his needs.
Because I believe American
seek such farm machines in
other good year for our
farmers will
continue
1956, I look forward
industry in all its parts
to
to
an¬
manu¬
facturers, dealers, and suppliers.
To be sure, it will be
that will test the resourcefulness and determina¬
year
tion of all of
to
give
another
our
But if
we
us
as
or
better than
1955.
will need to do his
part to make it
And doing that, we
dence and, I
are
willing to strive mightily
customers what they want, then we'll
have
good year, as good
Each of
year.
us.
think, with
can
look to
assurance.
1956
with
<
it
should
The sale of Scotch
is
good
confi¬
our
government
snould
increase
some
pagnes and
least
at
lengthen
the
bonding
Whisky is still increasing, and there
the demand for
imported Cham-,
in
Brandies.
It
in general should have
the import business
a
is my belief that this
industry
mildly better year in 1955 with
enjoying
higher rate
a
of
than the rest.
t.
Our
most
1955
Nation's
martin
business
has just concluded one of the
in its history. The prosperity of
will continue into 1956. There
may be a leveling
successful
off sometime
nature
of
years
during the year, but it will not be in the
During 1955,
recession.
a
almost every phase
has
m.
upturn
President, Lion Oil Company
v
been
able
to
of
our
economy
shift
to healthy
peace-time, non-military, levels.
This transition, marked by a
change
seller's
market,
is
market
to
buyer's
important
tremendously
in that it has returned
the
competi¬
tive enterprise system—the environ¬
ment
in which American business
achieved world
ahead
leadership.
industry
petroleum
during
1955,
moved
although it had
problems,
remain
be
year.
many of which
solved in the coming
to
For
example, steadily-rising drilling and
producing costs have resulted in a
T. M. Martin
need for
improvement in the price of
crude oil.
However, refined products prices held downby high inventories from excessive refinery
runs, will
not support a crude price increase at this
time.
business
has
phases of
been
of Federal
slowed
down.
controls
on
private
Nevertheless,
certain
economy—the natural-gas producing in¬
dustry, for example—still are hampered by unwarranted
regulation. This can be greatly relieved by
passage of
the
Harris
our
bill.
Administration
tive that the
the
as
Much
to
has
already
coming Congress do
success
of
been
alleviate such conditions.
our
even
done
It is
more,
by
the
impera¬
inasmuch
economic
system is," to a great
extent, dependent upon human effort and
imagination.
During the past year, the buying public,
encouraged
by intensive business activity, has shown confidence
in
the Nation's economic
strength by purchasing in record
This confidence will be extended into
1956.
These factors—a sound peace-time
volumes.
economy, increas¬
ing competition, expanding industry, the
ness
a
that
years.
Further encroachment
improved 1955
were
a
bond
The
objective,
America
able
in
from
differences, however, I
believe that
capable men are now alert to the
problem, willing and desirous to do something about
it,
and that there will be
definite and tangible progress
made in 1956 to put our farm
economy on a better and
more prosperous basis.
I
believe
I
years.
period to 12
to be
seems
Despite
ried
r
States that
enough
limiting the bonding period of American spirits
eight
adjust this period to compare with the unlimited
bonding
period in other countries. If the government cannot see
its way clear to eliminate the
age limit on spirits car--
depressing factor that might have been
supposed.
of
highest calibre with courage and vision
leading and
working in all phases of the Canadian
the
with
take
about
Results
sales to
Canadian natural
the
power and
continue
and
1955.
were
gov¬
Since population increase
and
company's 1955
farm equipment business might well
now
It has been normal in recent years for
dollar to show an upward movement in
of the year as Canadian exports
for
envisage.
must
to
think
in the net
industrial
can
thought that
we
The main factor in the rise of the United States dollar
recent
Canada's
comes
usually begin
with
While other forms of spend¬
States,
future.
from. So,
in considering the possibilities of the farm
equipment industry for 1956, we probably should begin
of further develop¬
that in all fields
ing, including that of construction, machinery and equip¬
ment and spending by government on goods and
services,
were all
somewhat sharply cut during 1953 and early
1954, they remained low during this latter year. Con¬
sumer spending, on the contrary, rose steadily
through
in
under
President,
and
more
remarkable
the
abundantly blessed, with the great
from her fertile soils, with
so
john
business will be buoyant.
have been
the
of
problems realistically, work enthusiastically with
vigor, enthusiasm and imagination.
about
of the handicaps from
ity
volume
their
assured, the decline in the Canadian dollar has removed
one
is
even
land
our
We
it
and
on
While the persistence of current exchange relationships
the Canadian and the U. S. dollars is not yet
time at least
in
look to the future with confidence
as 1956 must be a prosperous year unless some interna¬
tional calamity befalls us, which at the present time no
the two most im¬
Canadian export trade has suffered in recent years.
demand
Canada
income.
a
them
tremendous
insatiable
lies
between
of
the
tapped, Canada
most
for
await
productivity which
cheap
encouraging.
The mildness of the recession
and the speed of the recovery attest alike the prosperity
of other countries and a growing confidence by Cana¬
dians in the continuance of a high level of employment
in
that
abundance of
from the re¬
cession of early 1954 and the return
of the Canadian dollar to the neigh¬
borhood
of
par
with the United
were
and
a
which
developments in the Canadian business world
during the past 12 months and both these developments
and
and
McCarthy
surface, at least, it would appear that the Wine
Spirits industry in 1955 shared the general
prosper¬
the
the
that business will
portant
are
side
one
f.
On the
contrast
With
recovery
States dollar
the
on
thomas
Thursday, January 19, 1956
.
President, Austin, Nichols
coun¬
development, particularly during the postwar years, with
be as good if not better than it was
during 1955.
L. S. Mackersy, M. C.
other
man.
1956,
appears every reason to
that we shall do so, then
rapid
from
us
at peace during
the indications
The
upon
erally showed
there
believe
come
outstanding position in every field of enceavor, indus¬
try, commerce, mining, agriculture, finance and atomic
energy, is due basically to the leadership of Canadians
from every walk of life and to the Canadian
working
is to become colder or the
in
war
we
may
possibilities
temperature will increase gradually
until we find ourselves engaged in a
and
moves
depression on the
other, be forgotten. However, there is much in store for
this young country called Canada ana Canadians are
very much alive and awake to the potential and the
difficult, if only because of the
international politics. We live in a time
when peace is sometimes strained to
almost breaking point because
we
uncertainties of
inflation
tween
is
1956
upsets
why this industry
reasons
horizons.
new
tries in the world at any time and study of their possible
nature and the proper remedies should not be
neglected,
nor
should the narrowness of the road that runs be¬
business and economic future in Canada or in the United
States
of many
one
Serious
of Canada, Toronto, Ont.
Bank
is
forward to
ever
.
.
and
of
for
return of busi¬
control into the hands of the private
strengthened
the
indications
the American
consumer
that
1956
businessman,
confidence—are
can
businessman.
be
another
but
a
good
few
year
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(359)
MORTON
J.
MAY
—and
President, The May Department Stores Company
we
will
still
have
the
farm
problem
with
us—I
production at record levels, the time has
Con¬
centrated
believe that there will be
compensating factors.
scientific
-
The outlook for the retail business in 1953 is
favorable.
On the basis of present sales
income,
;
known factors,
.
in
trends, rising consumer
expansion plans and other
expect sales to continue to increase
business
announced
we
H5S, though at perhaps
rate than
lower
a
in the last half of
1955.
National retail sales reached
i
a
new
of
this
the
f
late
partly
this
branch
new.
natioral
resu'ted
opening
three
the
over
8%
increase.
Business
has
facturers, wholesalers
Govern¬
expenditures—national, state and local—will
ever
alert
professional
and
curb
the
the
factors,
excessive
zeal
of
so
dependent
Essential also to
ment
of
more
in
and
order
tribute
With the free
machine
and
industrial strife.
selling.
efficiently
and
we
well-being
should be
no
If
the
advanced
methods
of
distribution.
continue
can
cf
its
limit to
of
workers
to
its
Morton J. May
Our sales in
1956 will be augmented
by the first full
operation of the Kaufmann addition and the
new
branches, which are located in Los
Angeles, St.
Louis and Denver. Together these new facilities should
,
,
of
account for annual sales of
It
•
is
doubtful,
than $50
more
million.
economists have pointed out,
that expansion will continue at the same
high rate that
brought the economy to a full employment level in
1955.
However, conditions appear favorable for con¬
tinued growth at a rate sufficient to maintain
that level.
as
many
One of the most important economic
forces in the
coming year will be investment by industry in new
plant and equipment, which, according to announced
plans, will be about $4 billion greater in 1956 than in
This, together with expected increases in Federal,
'1955.
state
for
and
local
continued
government
growth,
sales do not exceed
Contributing
,
interest
-
to
toward
to
the
expenditures, should make
if housing and automobile
even
their
1955
overall
retail
levels.
v"
expansion
trade
is
and
the
of
particular
general
movement
suburbanization, which will continue
additional
consumer
demand
for
household
to
Mmmwtmm
create
equipment and other
goods.
THOMAS
B.
We're really not emphasizingmathematical assistance... it's
just
of in need of something
would like
McCAEE
our way
President, Scott Paper Company
Former Chairman, Federal Reserve Board
never been more
competitive—and never
Thus has the purchasing agent of a large com¬
summarized the current situation, based on his
pany
will
words
reveal
for
instant's reflection
This
their
has
50 years.
general economy never
our
fared
better.
In
1955
tered many records and
stride forward.
we
took
Never have
a
.
be
can
to
long
public
'
I
look
the
to
with-optimism
that business will act
r
months
m,.^.
'
entndsiasm
ana
because
I
^
£
believe
wisely and will strive harder than
"fever to further the successful progress of 1955. The
will,
.year
cf
dangers,
as
We
overcome
can
many
has
cf the
aspects in
every
period in
of
by
with
our
the
economic
difficulties
are
and
per
opening
balance,
I
believe
a
managements
that
any
few
are
are
h
higher.
is providing
short
would
years
are
rich area, endowed
1965 capacity
sequence
pace
we are
growing with it. It's
resources,
is growth.
growth, and
our
happy to be
mindful of
we are
planning to equal
on
and
a willing,
farsighted leadership. The natural con¬
the low-cost electric power
plan
power
by the AGE System. This
with many natural
American Gas and Electric is
this
served
area
our
a
helping partner in
obligation to provide all
that's wanted. That's why
first 50
in the next 10—and
years
we
we
are
also
equalling them both with the expansion after that.
American
Gas
&
Electric
industry.
ury
and
the
many
have
been
System
Indiana & Michigan Electric
Ohio Power
Company
Company
Kingsport Utilities, Inc.
Kentucky Power Company
Wheeling Electric Company
More
ago.
Federal
we
a
importantly,
industries.
L.
tremendous stimulus to busi¬
Reserve
can
authority in these
credit
look
has
never
been
administration
forward
to
a
wise
better.
in
sqch
exercise
areas.
While moderate
adjustments may occur in some lines
such as residential
housing and the automobile industry
Attention:
considered
The cooperation between the Treas¬
monetary and
capable hands
Appalachian Electric Power Company
In¬
improving, and industrial statesman¬
Washington has been
the
generating
new
our
is dictated by the ever-increasing
tremendous
a
increasing output
enlightened attitude of the present Administration
and
of
Research
methods
levels that
ness
With
bring
of
negative
industries and expanding others.
ship is emerging in
in
into building
ones to
improved materials and products that
production
worker to
The
developing.
are
and
up new
in
impossible
avoid
•
new
novations
and
growth.
realizing the inevitability
population is increasing, and incomes
with
us
go
1356 will be strongly overshadowed by poSi-
Foreign markets
-
growing at
new
difficulties
.tive forces.
Our
our
flexible and ready to adjust to tjpe
ever
On
fraught
many
dangers
change, being
unexpected.
be
course,
program
industrious people, and
tk™.
forward
expansion
a
relationships.
ahead
This equals
considered by many as "The Heart of Industrial America,"
area,
public and personnel
our
years.
our
more
than $1.3 billion in facilities after
Much of this will
is
values, market prod¬
intelligently, and continue
,to improve
for the next ten
more
demands of the seven-state
better
more
planning to invest
8,500,000 kilowatts.
Our
Our
even
brighter, pro¬
vided we strive more
vigorously to
increase the efficiency of business in
all phases cf operations, give the
ucts
will inaugurate
we
are
peo¬
ple enjoyed greater prosperity.
future
year
facilities, and expanding existing
shat¬
our
a
present investment of
enterprise.
Indeed,
fiftieth anniversary,
our
than $135 million
Certainly
our
year,
you
System will in the next 10
it has in the past 50.
as
greatest expansion program ever. We
those
on
penetrating
they speak
competitive system of
significance.
well
An
much
years grow as
"Business has
wide range of contacts.
we
to know. The American Gas & Electric
better."
industrial
For information
in these
Indiana
seven
•
plant-site
seekers
available plant sites or factories for sale
on
or
lease
states:
Michigan
Contact: Mr. L. L.
•
Ohio
•
West Virginia
•
Virginia
•
Kentucky
•
Tennessee
Davis, Mgr. Area Development Division
American Gas & Electric
Company, 30 Church Street, New York 8
Telephone: COrtlandt 7-5920
NO
FEE...NO
di¬
OBLIGATION
can
dis¬
industrial
great
the
consumers,
Continued
With
a
13-floor addition to
Kautmann's store in downtown Pittsburgh.
year
are
health
there
future prosperity.
our
completion cf
our
business
improve
and
of
the
companies
American
in¬
and
broader
a
selling.
many
output
continued progress is the develop¬
our
retailers, and for
personal
con¬
manu¬
a
marketing and
to
the strength of the American
upon
by
steadily increasing amount of time and money
into the study of all phases of
distribution—advertising,
we must
capital
each
and
in
is encouraging to see that
recting
relationships between
concept
for
come
in'distribution
con¬
It
to
research
from
summer
stores
probably
for plants and equipment.
economy, we cannot afford to have
case,
gain
cf
more
tinue to rise.
world
sales of the May
! Department
Stores Company for the
j 11 months ended Dec. 31 were up
j 11.7% over last year. The amount
crease
will
avoid conduct against the
public interest.
}ended.
own
ment
labor
j $170,664,000 000
by
approximately
1
8%, and were cOxntinuing to follow a
\ strong upward trend as the year
cur
plans to spend
be
an estimated $185 billion in
exceeding the 1954 total of
In
spending
To take full advantage of the
positive
] high of
I 1955,
sumer
99
on
page
100
100
(360)
The Commercial and Financial Chronicle
Continued,
from
Active cooperation of
reflects
research
President, Continental Oil Company
The
.
level
of
The
1956.
into
business periods should
best
; the. first half of 1956, with the
somewhat
be
to
be in
than
better
resources
materials
antibiotic
the
I
in
ways
1955.
am
with
long
private clinicians.
which
trend of
j
recent years.
power-driven
gravity conveyors;
mechanical presses; outboard motors
and certain products for the Military
face
the
Establishments of the
petro¬
industry as it enters a new
of activity. Only a month ago,
the industry was apparently facing
over-supply
general
a
Since
of those
products.
and
While the
-inventories
seasonal
ion
of distillate
level
demand.' If
that
in
to dictate high levels of
adequate supplies might well be obtained
through increasing the ratio of heating oil to gasoline
produced, rather than by refining greater quantities of
/'
•;
'
"
'"
-
'
"
i
I
sales
of farm
the
declined,
1956,
1956
use
decisive
a
end
deterioration
of
park
10-year program,
a
broad,
a
long-range;
ap¬
development, will be
Mission
as
Dou*l*» McKay ?
^ .:'
-/
66, is to make
fully adequate to the
million
people expected to visit
believe that
this
will
program
our
parks
by
1966.
be
the
most
meeting
taken in
ever
our
needs of the
our
vital
to
prove
comprehensive water
resource
develop¬
ment becomes more
imperative each day and the Eisen¬
hower Administration will
press strongly during the cur¬
rent session of
Congress for prompt action on several
important fronts.
a
■■
One of the first
steps must be action by Congress to
^
may
A.
King
McCord
attained
provide
1955.
well record the largest production and
year in the industrial machinery business.
year
in
wise
national park responsibilities.
The need for
equipment
volume
and
important forward step
may
sound framework for
a
cooperation
Industrial product sales in 1956 are
showing and will
show a substantial increase over
1955.
The
current
production,
crude oil.
that
approximate
de¬
heating oil
continues
mand
is
by manufacturers during
for¬
era
submitted to Congress. .The objective
80
because of the large drop In farm
commodity prices and the increase
in prices the farmer pays.
My opin¬
heating oil situation has improved, gasoline
have continued at a greater than normal
unprecedented
farmers has
to
suc¬
new
^of ►this
program, known
National Park system
and will continue to decline in
build-up.
This .has been caused by the high
refinery runs considered necessary to meet the
level of
Canadian
the
This year
involving
field. During that time the
purchasing power of United States
tight
tendency toward
The
halting
proach to park
■
export
supplies, which already has been noted in some areas,
has resulted from transportation difficulties.
bring
are
move
neglect
areas.
market of replacement except in the
Since then, an early and cold winter has over¬
taken much of the country, and the resulting demand
for heating oils has significantly reduced
the excess
products.
supply
;
States
latter
the
bright
conservation
will
we
bulwark
in
increase in appropriations for
the
National Park service. This
increase
is making possible a
sound start in
and
part of 1953, the
farm equipment industry has been
serving a market which has been a
refined
of
United
hydraulic
Government.
leum
year
McCollum
and
a
If
will
to
the
made
and exploitation of the
Last year Congress
approved at
the President's
request a substantial
OLIVER Corporation is engaged in the business
manufacturing and selling farm tractors, machines
and
implements;
industrial tractors and equipment;
Domestic demand should
approximately 4%.
problems
the
of
year.
Many
been
j
,
continue
can
past.
The
petroleum
ports, will
last
a. king McCORD
President, The OLIVER Corporation
anticipated that United States
Nation
into
levels, total spending by individuals
increase
have
to
the
we
legislation
the past three years.
should maintain its upward
F.
which
resource
demand, including ex¬
be approximately 9,000,000 barrels daily during 1956. This
represents an increase of 3.7% over
over-due
ward
cessful,
this year.
hopeful that
lishing fellowships with and making grants-in-aid to a
number of medical colleges and institutions, as well as
purchases of automobiles
undoubtedly lag behind 1955
It is
be expected
can
most
advances
The research program has been rounded out by estab¬
Although
will
with
Thursday, January 19, 1956
.
Secretary of the Interior
Further rewarding
progress in the conservation and
development of the Nation's great "wealth of natural
"In the service
Grants-in-aid and supplying
institutions
<
HON. DOUGLAS McKAY
cancer
company's slogan,
which show anti-tumor activity are among
which this cooperation has been evidenced.
whole expected
year as a
the
research
cancer
1955, which reached an all-time high, should carry over
well
expected to
Schenley Laboratories in
of medicine and mankind."
last quarter of
business in the
general
year are
result in
McCOLLUM
F.
L.
by this affiliate during the current
even further gains.
99
page
,
water
on
,
Federal, State, and local
development.
Recom¬
resource
mendations for
legislation to meet this need will be sub¬
mitted to Congress by the President
early this year.
Last year Congressional, action, on water
resource un¬
sales
These and other problems
dertakings recommended; by this Administration was dis¬
appointing. This year tyet shall again ask approval of
prompt starts on the Colorado River Storage
Project, the
than 1955.
However, greater emphasis will be placed y Frying Pan-Arkansas
^Project, and; otherr reclamation
upon the development and manufacture of
products re¬
projects which have been delayed.
quired for the aviation and missiles programs. The effect
We also hope that Congress will
approve construction
of this would
business
armament
The
.
imports situation
another major problem,
tion has
cerned
able
.
*
,
Expenditures for defense by the Federal Government
during 1956 will be equal and maybe slightly higher
oil industry with
to which no satisfactory solu¬
yet been found.- Continuing efforts by all con¬
this issue
with
balance
presents the
judgment
on
needed
are
between
imports
to
and.
achieve
a
reason¬
domestic
supply.
be
call for moderation and sound
the part of all segments of the
oil
only
and all
the oil industry
the natural
also business in general
in the United States.
but
I
prices, the Harris-Fulbright bill, which frees the
producers from regulation by the Federal Power Com¬
mission while at the
must
be
time protecting the consumers,
same
passed at the forthcoming session of Congress..
R.
BLAYNE
President,
McCURRY
Schenley
>
pharmaceuticals being marketed domestically, and
products bearing the ShenLabs trade¬
ucts
We introduced six new prod¬
the latter part of 1954
first eight months of 1955,
covering Shenley's fiscal year. These
and
during
"MorCal," ^
calorie
food
cereal-like high-
supplement for weight
gain; "Diafen," an anti-allergy prod¬
uct especially effective for
hay fever;
"Euphased-5,"
a
stimulant and appe¬
tite depressant for
stat,".
R.
Blayne McCurrjr
anti
an
-
overweight; "Colodiarrheal; "Dorbane
Suspension," a non - habit - forming
laxative; and "Vascutuin Improved,"
a lipotropic for vascular
protection.
Currently in work at the com¬
pany's
tories
New
are
York
.projects
research
in
the
labora¬
fields
of
dermatology, antihistamines, antispasmodics, sedatives,
hypnotics, blood coagulation and nutrition.
Specialty pharmaceutical products bearing the Schen¬
ley label
distributed
are
in
54
countries
outside
of the
U. S. and Canada.
added to
facture
our
or
A number of firms have
recently
list of companies licensed abroad to
In
package
addition,
been
manu¬
sell
and
SchenLabs trademark.
our
'
products
under
the
u
anticipate expanded activity through
our arrangements
with leading pharmaceutical comoanies in West
Germany, Spain, France and Denmark for
the exchange of antibiotic
research discoveries and de¬
we
velopments.
and data and
licenses for the production of
any discoveries and devel¬
opments in the prevention, treatment and
cure
Nineteen
of
dis¬
The arrangement covers all
and drugs for
pharmaceutical prod¬
ucts
medical, dental and veterinary use.
Norex Laboratories, SchenLab's
wholly-owned pro¬
prietary pharmaceutical company, enjoyed the best
year
in its history in fiscal
1955, through increased sales of
"Amitone."
nial during the last session to the
City of Eugene,
of the opportunity to
provide the
prosper¬
Fifty-Six
promises
be
to
tric and Gas
as a local public project needlessly added
to the power problems of the Pacific Northwest.
Over the past two years, the Administration has
pro¬
another
year
vided
within
the
areas
are growing rapidly, particularly
commuting dis¬
tance of New York and in the
in New
areas
We
.
Jersey adjacent to the Dela¬
River Valley;"The territory
and
Philadelphia metropolitan
and
new
thereto,
centers.
In
in
;
areas,
commercial
mands
of
and
sulted in
new
creased
use
of
to
electricity
1956
as
of
a
over
1954.
Dec.
on
20
other
summer
and
Lyle McDonald
re¬
to
be
further
The
leveled
new
every
residential
of
am
the
usual
amounting to 3,642,981 therms occurred
exceeding the 1954 record 24-hour sendout
ness
Expanded marketing operations
sound
certain
even
on
outlying
areas
these
stalled
end
of
two
on
for
new
1958.
capacity.
of
a
new
new
stations will raise
sales
record
turn
or
Dec. 20,
more than
Thus,
in
550,000 kilowatt
Completion
company's in¬
3,000,000 kilowatts by the
approximately three
will have added jabout
The
on
far
and
fell
The
is
than
has
in
company's
1,000,000
construction
approached $90,000,000 and the
years,
kilowatts of
expenditures
1956
the
in
expenditures
construction will
probably exceed $100,000,000.
senger
about
of
the average
for
re¬
a
4%%,
for in¬
promise
in
railroads
in
many
power
1956
respects.
about
research
revolution
-
levels.
diesel
to
holds
B. McGinnis
railroad
1953
concerns.
conversion
Patrick
of
railroads showed
outlook
brighter
steam
earnings,
short
investment
less
dustrial
from mixed to
area.
improvement
though their slice of the trans¬
For the year,
450,000 kilowatt
the
Nation's
our
McGINNIS
B.
revenues
by 779,645
started preparing
area,
a
rapidly growing northern
capacity to
company
1955
construction
con¬
a
portation pie continued to diminish.
1955, the company completed the installation of
185,000 kilowatts of new generating capacity,
and, be¬
station in its
essential to
so
Now,
generating station in its central
among
are
While most other industries reported
gas.
sides continuing construction
of
devel¬
conservation
resource
available for everyone, rails showed
be
availability of greater quantities of natural
has made possible the extension of
gas service and
the
na¬
Railroads in general enjoyed a good year in 1955. This
due more to the general prosperity than to the rela¬
tive growth of the railroad industry.
With more busi¬
The
for
y
was
con¬
will
of
PATRICK
indication that
customers
gas
site
r
;
tions which promises to continue as the
fastest growing
market for gas
during 1956. A record 24-hour sendout of
the
was
•.
a
,
straight natural
years
mining claims in the
on
development which is
In 1955, our sales of gas increased
substantially over
1954, reflecting the increase in building heating installa¬
the conversion of
earlier
confident that 1956 will mark
record
during 1956, based upon the number of homes
already under construction and the
prevailing optimism
existing among builders in this area.
gas
in
satisfactory basis
important objectives.
on
added
therms.
of
President, New Haven Railroad
during
result of the installation of additional air
of
education
resources
economic future.
cooling equipment.
promises
large number
needs
country and promoting adequate controls
statehood
All-in-all, I
tinuance
The de¬
ditioning equipment. Also, there is
a
educational
'.-''V.
our
achieve
our
record peak electric
"dip"
whose
:
.
the surface
load of 2,036,600
kilowatts, an increase of 186,500 kilo¬
watts over the 1954
peak. A contributing factor towards
the record kilowatt hours sold
this year was the in¬
summer
the
Statehood for Hawaii and advancement of the
industrial—showed
customers
a
meet
tional forests.
categories—residential,
marked increases
to
opment of Alaska to make it possible for that Territory
sales
our
three
continue
Indians
refuges of
over
widely
*
1955,
all
adult
neglected.
shopping
new
must
We expect this year to continue also the striking prog¬
ress
which has been made in protecting the wildlife
diversified industries, new residents
and incidental
facilities for thousands of Indian children
increased numbers of Indian people and the Adminis¬
tration will support new legislation for the education
of
by the company, aptly called
the "Crossroads of the
East," with its
strategic location in the New York
continues to attract
school
previously denied the opportunity to obtain an education.
For the first time in
history, all children of the Navajo
tribe, which is the largest in the country, have been en¬
abled to go to school.
of
Company
in
Ore.,
features of the
power
Cougar Dam
growth for the nation's electric and gas
utility industries.
Sections of the territory served
by Public Service Elec¬
eases.
its antacid
a
Cougar
partnership basis. De¬
Dam
In
The broadest of these
arrangements is with the famed
Farbenfabriken Bayer A/G of West
Germany, the origi¬
nal discoverers of
aspirin, the sulfonamides and many
other important drugs. The
German Bayer
company and
SchenLabs exchange scientific information
fr.
of the John Day Dam on-the Columbia River
and
on the McKenzielRiver on a
newer
lyle Mcdonald
the
were:
of
■
the progress being made by foreign firms licensed to sell
mark.
conventional
served
The optimistic outlook for sales activity of our firm in
1956 is based on the prospects for sales of an expanded
list of
of
production
Chairman, Public Service Electric and Gas Company
ware
Laboratories, Inc.
in
-
Federal
able
production
increase
believe the country
may look forward to
first six months during 1956.
ous
gas consumers
regulation will impair supply of; this quality
fuel, both immediately >nd down through the years.
To assure an adequate and continuing supply at reason¬
reduce
an
weapons.
industry throughout 1956.
;;
Of more general concern is the issue of Federal con¬
trol over the production of natural gas, which affects
not
to
with
been
completed.
nuclear energy
on
of
The
from
another
possible
power.
Meanwhile, new developments are
being pursued in the field of pas¬
transportation.
The New Haven Railroad has
on
three types of radically new, light weight, lowcenter-of-gravity trains which should be in operation in
order
the next few months.
In freight transportation, new developments include
growth in the transport of highway trailers by rail and
so-called "piggyback" operations.
During 1956, consid¬
erable
progress
should be made along these lines.
Electronics is expanding the horizons of railroad
Continued
on
page
po-
102
Volume 183
1954 is also about as large as for
road, as pointed out in the
1954 report, the 27% gain in this
measure since 1946 is one of the
lesser accomplishments among
better than a stand-off as far as Class I roads. This measure is a
concerns
benefit to net earnings, complex one and is affected by a
This figure is estimated as equal number of elements besides the
to about $2.90 per common share mere matter of train speed while
for'1955, but of this only some actually
under
way
and
the
$1.65 was available for the com- heavjer loads that dieselization
increase that has been esti$7 million
Erie, and for other increased costs. In this case, the net
result for 1956
might be little
Highly leveraged and thus mom
wage
mated at $6 million to
:
By GERALD D. McKEEVER
Erie Railroad
Several
ing that could
look
for
place,
the
forecast
nues
fic
the
July, and at far below capac¬
ity at that until recently when it
the
first
went
on
has
been
estimated
Erie.
In
president
increase in
8%
and
ment
and
reve¬
general improve¬
does
include
not
any
part of the 7% increase in freight
rates which has been applied for.
Secondly, an important step has
been taken to cut operating ex¬
penses in the plan to move the
passenger terminal from Jersey
City to the Hoboken terminal of
the
Lackawanna, and at the
estimated
The
It has
million in¬
crease in
1956 revenues probably
includes something for the move¬
of
ment
for
the
$13
construction
materials
$80 million General
new
Motors
Fisher
Body
plant
at
Mansfield, Ohio, on which work
has only begun. It is expected that
same
time abandon its ferry operations
on which it claimed a $1
million
loss in 1955.
two-shift basis.
a
by the Erie man¬
agement that at a reasonably nor¬
mal level of motor car production,
this plant alone should contribute
about $9 million annually in reve¬
nues.
\V':
for this year from new traf¬
sources
Company
in
off¬
the
out¬
are
road's
an
in
brighten the
factors
this
tion
There will undoubt¬
source,
new
when
contribute
may
which
bear
heavily
all
on
A
for
that has been estimated
for this year may be ascribed to a
full
year's
operation
the
of
7%
the
Erie
more
the
at
con¬
serve
mean
revenues
level
current
Otherwise
a
large
share of the $13 million increase
Ford
assembly plant at Mahwah,
N. J., from which there was only
from
new
that
has
five months' benefit in 1955, the
plant having begun operations late
traffic and other
been
would
year
estimated
be
should
1954
an
with the
tax
deferral due
tax
to
;
With Mountain States
gain in the per car day
OVGr
longGr DGriod
_
measure over a longer period
(Special to The Financial Chronicle)
in_
gests possible room for improve-
Schaub
ment in
ac-
States
at
car
handling in yards and
terminals.
.-.'
Colo.
DENVER,
eluding better traffic years sug-
any:* re¬
to
factor
the
train hour and the more
mGasurG
celerated amortization which is a
contributing
has
Stewart
John
W„
staff of
Colo.
joined
DENVER,
increase in gross ton-miles per
meager
confused
be
not
(Special to The Financial Chronicle)
has
1954
and
1953
between
freight
credit,
and the far more imposing credit
of over $1.60 per common share
is
Securities
Mountain
Corp.,
Club Building.
W.
Lewis
—
with
now
Denver
V >
\v
sources
for
this
by
the
absorbed
consolidated loss for tax purposes
1954 and 1955 arising
abandonments, accelerated
for*,both
from
freight rate in¬
granted it should
of operations.
new
The Erie is
$10 million
some
large part of the increase in
revenues
full
is
crease
This
share.
Intermountain Sees. Add
while showing at the same time
to
months of
1955 add up to almost 60 cents per
common
,.
plete elimination of Federal tax
for the year, plus a credit.
The
structing a 300-car yard to
this plant.
roads operating in New Jersey.
shown
credits for the first 11
^
miles per car-day that the road
reorgan-
planaTon?a™owgeSverrsin0craee
,,
,
sharply responsive to changes ia
the level of earnings, Erie common has speculative appeal in
view of expected developments
and also in view of the yield of
almost 7% that is produced by the?
$1.50 dividend rate assuming that
this can be maintained by a real
improvement in earning power.
For i*stance, the decline in ton-
ization.
in
...
.
mak:es possible at the same time.
duction, and in this case, the com¬
operation
including
taxes
1941
better
road's
the
the
inherited from
opera¬
from the joint passenger terminal
If
for
allowing
funds and capital fund
stipulated in the bond indenture
sinking
the
part of $10 million annually to the
with the Lackawanna
a
reduction
in local
after
dividend
mon
on
edly be other substantial savings
revenues.
any
the
for
Railroad Securities
101
(361)
Number 5460... The Commercial and Financial Chronicle
amortization and other
sources re¬
sulted in not only
eliminating the
Federal tax for those years, but
the carry-back of the excess calls
for a reduction in taxes paid in
prior
the
and
years,
restoration of
a
this reduction,
of
amount
or
the income of the
year in question. On the books it
is thus certainly an income fac¬
to
recovery,
from currently
distinguished
be
must
but
tor,
earned income.
Earned income is gained by im¬
Trenton Trust
Company
level of its revenues
TRENTON, NEW JERSEY
U. S. Government Securities
.
.
.
.
I
.....
.
.
>
Loans and Discounts
.
.
.
...
.
$12,578,687.61
.
.
18,057,318.49
.
.
12,005,954.86
.
.
.
.
.
3,525,180.89
24,848,080.35
.
Banking Houses, Furniture and Fixtures—Equity
Other Real Estate Owned, Net
1,040,585.47
1.00
.......
Accrued Interest and Other Assets
the
300,643.34
......
$72,356,452.01
V
LIABILITIES
needs
Erie
solution
and
find
to
the
to
.
._
.."y.v
.
5,519,528. .70
Preferred Stock—Class "A"
924,015, .86
maintenance
Preferred Stock—Class "B"
.
.
.
.
.
.
^Preferred Stock—Class "B"
.
.
.
previously mentioned, plans
.
.
.
the
Lackawanna
York end is
joint operation with
Binghamton-Elmira
appropriate
track
abandonment by one road or the
other.
Furthermore, the Erie has
280,000.00
the
in
with
1,604,000.00
Undivided Profits
Reserve for
Contingencies
r
sold its
1,172,217.04
Branch in the Scranton
234,419.21
895,660.00
Preferred Stock Retirement Fund
step,
one
also plans for
area,
400,000.00
Common
Surplus
with
terminals
40,000. 00
.
268,698.00
.
.
$
the
was
for the consolidation of passenger
Erie
.
latter
The
with the Erie in 1955.
and it is understood that there are
Capital—
'Preferred Stock—Class "A"
higher level
a
17,913, 20
,
.
and
not increas¬
even
or
revenues.
at the New
...
basic
more
a
than the ques¬
expedient
of
cutting
tionable
As
.
.
is
problem,
permanent
more
of
even
revenues
expense
is
that
one
some¬
possibly
added
than
more
is
But what the
what less favorable:
case
Unearned Discount, Accrued Taxes, etc
Dividends Payable-
comparison
corresponding
with the Class I average
ing it in line with
Deposits
men¬
district, although
Great Lake
the
Other Bonds and Securities
be
lagged
average for
.
State, Municipal and Other Public Securities
.
behind
far
too
the
ASSETS
Hand and Due from Banks
described
as
should
tioned that the Erie has not
STATEMENT OF CONDITION, DECEMBER 31, 1955
on
it
and
earlier,
Organized 1888
Cash
proving the margin between reve¬
nues
and expenses.
The Erie is
making strong strides to boost the
mile Jefferson
former 35
while
lion
to the
area
Delaware & Hudson for
retaining
$3J/2 mil¬
trackage
"THE COUNTREY MOST OVER GROWNE WITH PYNES
...is still rich in resources for your plant.
rights.
Nevertheless
4,854,994.25
*
be
privately owned.
$72,356,452.01
;
-'v
U.
at
obligations and other securities carried
$2in the foregoing statement are deposited to
S.
secure
Preferred
Retirabie
Preferred
Retirabie
Common
Government
public funds and
Stock,
at
$20.00
Stock,
at
Class
"A"—44,>83 shares,
share -and
per
20,000
Class
$100.00
for other purposes required
per
share and
Stock—28,000 shares,
par
value
by
-
1 j,
law.
$(>.000
per
share.
shares, par value $20.00
per
share.
par
accrued
accrued
dividends.
dividends.
value $10.00
per
done
much
the
remains
to
side.
It
expense
pointed out in the road's 1954
that within 10 years the
road had spent $162
million to
modernize and improve the phys¬
ical
condition
of
its
property,
which
included
the
complete
dieselization of all operations by
was
report
the
share.
on
of
end
1954.
The
unsatisfac¬
OF
DIRECTORS
J. Conner French
Mary G. Roebling
Counsellor at Law
President and
Chairman of
the Board
I. D. Gindhart, Jr.
Dr. Willarl H. Allen
Chairman of the Board
Secretary of Agriculture of New Jersey
Standard Fire Insurance Company of N. J.
Bruce Bedford
Charles M.Jones
Chairman of the Board of Managers
The Trenton Saving Fund Society
President, The Luzerne Rubber Company
year
suffered
nues,
a
of
1954 in which Erie
16%
there was
decline
no
in
reve¬
10
significant im¬
period.
Even with the
gains of 1955 the road's
year
revenue
transportation ratio for 11 months
The John A. Roebling's Sons
M. J.
Corporation
McHugh, Jr.
President, The Tattersall Company
Edward D. Parscns
Alan W. Bowers
Real Estate
Senior Vice-President
Samuel Swern
Dr. John G. Conner
Hudson T. Winner
Wd!i?m C. Ehret
President
Winner Engineering
Corporation
MAIN OFFICE
November
through
was
up
43.7%
of
as
against
43.4%
Broad and
Market Sts.
Member Federal Deposit Insurance Corporation
Colony
the
.
exported "pitch, tarre,
items still
.
.
road's
viz.,
for
the
1954
Virginia
reared
of
that
new
report
high
records
points
made in that
year
were
forests
of gross
host of
bring
rials
RAYON
as
Generating
modern
stepped
plants. If you, too, can profit from
300,000
Virginia's
fiber, pulp, lumber
supplies of resin,
.
.
.
you
soon.
railroads,
chemicals,
at
short-haul
ELECTRICITY
capacity
more
with
hunting, write
serving
area.
flowij
network.
1955
was
and ready
authorized
more
For
in
cost.
by 300,000 kilowatts, with
up
dential help
will find
other advantages in this new
industrial
A
lines, plus
from vf.pco's modern power
furniture and paper now roll
Southside
truck
coal,
LOW-COST
AMPLE
from
rates
soybeans and other mate¬
John
CARTONS,
rail
markets.
main-line
five
dreamed! <'':
as
favorable
Mid-west
to
have
CHEMICALS,
central to the East Coast.
with
facts
your
or
.
.
.
and confi¬
industrial home
telephone vepco—
the top of the south.
ton-
measure
freight train hour and
in average freight train speed.
Al¬
though the 65,273 gross ton-miles
per
mate. You're
industries
Captain
man¬
mild, no-shut-down cli¬
a
in the overall
efficiency
per
to
today
new
which
never
But
list.
modern
many
out
power
the
on
PLANT range
FOR YOUR
FACTORS
from conservative Southern
clapboard and waynscot"
abundant, nearby
The
PLUS
from
with pynes." That year,
corresponding 1954 period.
COLONIAL BRANCH
Broad and Hudson Sts.
REPORTED
year
—
miles
28 West State Street
MERCER BRANCH
SMITH
growne
over
well
last
rather than down
JOHN
Virginia in 1608 "the countrey most
provement in its cost ratios in this
Vice-President
H*rry J. Bodine
President, Wm. C. Ehret
result, nevertheless, is that
disregarding the generally
poor
BOARD
even
tory
CAPTAIN
freight train hour figure for
VIRGINIA ELECTRIC and POWER COMPANY
Walter I. Dolbeare, Vice
President—Area Development
Electric Building, Richmond
9, Virginia
•
Phone: 3-4261
102
(362)
The Commercial and Financial
Chronicle
Continued
jrom
tentialities.
In
page
With
yards,
electronics
making possible push-button sorting of freight cars into
the proper trains, with the speed of a iree wheeling
car automatically controlled on the basis ol its
weight, how far it has to go, the consistency of the grease
in its bearings, and so forth.
Electronics is being used to expedite accounting and
train
reservations.
is
Television
our
shortage of
cial
more press¬
than
chemical
future
permitting re¬
switching classification and inspection. Un¬
development is a device which will electronically
identify a train and set signals and switches accordingly.
All of these developments have peen pursued by the
New Haven Railroad.
In 1955, the New Haven made
undertaken
grams
and
substantially
completed
activity at the start of 1956 was at the highest
history. Many of the statistical indicators were
levels, and most of the remainder were ap¬
proaching all-time records. The general level of pros¬
perity did not, however, extend to
the agricultural sector and there is
during
tinuously welded rail, the largest such program in the
east; the rebuilding of nearly 1,000 box cars and 500
semblance
of
legislation.
A
Cabinet
Committee
Transportation last year submitted to the Congress
ommendations
of
carrier
As
matters
stand
today,
the
govern¬
dential
will
,
common
port.
recommendations
The
unregulated
of
the
Cabinet
any
off
the
of
cream
Committee
carriers, because they
pick and choose their traffic in
skim
at
adoption
the
the
a
manner
re¬
now
can
calculated to
transportation business,
are
opposed to the report, of course.
Under existing transportation rules, the unregulated carriers
enjoy distinct
advantages which they will,
understandably
want
to
preserve.
The railroads
are
confident that Congress of the United
States, whose very foundation rests
grant to the
business on
upon freedom, will
carriers' the freedom to compete for
equal basis with their competitors.
'
these
JOHN E. McKEEN
-
ble
to
No
prevent
a
automobile, production
somewhat
diminished pace.
been
and
Even though cutbacks
housing construction
forecast,
have
the Gross National
is expected to go
Product this year
above the $400 billion
1
As one indicator of
appraisal of
activity,
level.
planned
outlays for expansions
zations in 1956
or
exceed
and
to pay
outstanding debts.
made at the beginning of
pected
materials, particu¬
larly steel.
rose
to
billion—17.6%
in
an
unexpected
the
prewar
more
price of gold and
painful than ever
materials
over
be
Si1"3?
(Indices
products and dosage
forms—are expected
volume, but the competitive nature of
these products will
limit the increase.
Looking
chemical
beyond
1956,
the
long-term
industry
potential
for
growth still appears
promising. In
chemical sales volume
has more than
doubled, and in the decade ahead U. S.
industry will be
serving a domestic market in need of
40% more goods
and services. In
the
decade
past
addition, despite stronger foreign
petition, overseas markets
living standards rise.
world
certainly
will
com¬
broaden
as
But beyond
these gains, the
industry's growth in the
future, as in the past, will be .fostered
by the develop¬
ment of hundreds of new
products designed to meet
basic
human needs for
food, clothing, shelter,
health, transpor¬
tation, communications, and industrial
tools. Research—
the basic
the past
stimulus to the
industry's vigorous growth in
quarter-century—will continue
setter in the years ahead.
to
be
the
pace¬
as
inac¬
the
pinch between
cost
required
of
to
labor and
run
mine
a
dollar had been checked.
based
on
arising
troubled peace.
:
The pattern of the
present boom, in which the feverish
activities resulting from
monetary inflation surely play
large part, is perhaps not closely parallel to that wnich
prevailed in the late '20's and certain unsound
a
of
practices
the
the
earlier period
to be
appear
absent; but even so,
policy of maintaining
analogy between the current
1934 price for
gold and the efforts 25 years ago to
the 1914 price of gold is
worrisome.
In the
the
maintain
earlier
period
t
holding
e
the
of
dollar
the
too
overvalued
long at Lie
pound
old ratio
undoubtedly had much to do with increasing the severity
of the subsequent depression. It
may well be that h wise
adjustment of the
would
do
much
currencies to gold at this time
keep the inevitable reaction to the
paper
to
present
growing inflationary boom within controllable
limits; and the warnings of such students of the problem
Dr.
as
s
Holloway, P. ilip Cortney and the late
Dr.
Rist
ould not go unheeded.
In
times
mines
of
su:h
the
these, the output of gold from
as
world
would
marginal operations
ore
were
curtailed
reserves
as
is has not occurred due
thy¬
be expected to
decrease, as
forced to close and available
costs advanced.
Fortunately
largely to favorable develop¬
ments in South Africa which far more than
offset diffi¬
culties elsewhere.
relief to
no
The
the
debts
about
diverging figures
On the Witwatersrand, profits from uranium
gold-bearing reefs have rescued a number of old
that
were
tion
teat
fad
postponed.
tions
at
from
the
in
the
mines
their end, and the decline in
produc¬
been anticipated fas been
indefinitely
to
ciose
Maintenance of production from these opera¬
capacity together with increasing output
newly developed mines of the Orange Free
full
State will
probably establish a new record for this major
gold field, at least for annual quantity of gold though
not for profits.
ation
and
ore
With 11
from
or more
around
26
uranium plants in oper¬
mines being treated in
them, a new element, independent of tne economics of
the gold industry, has been
introduced, with the result
If
operations such
we
other
new
and
severe depreciation of
the
by the immense expenditures
from the war and the subsequent
brcug t
are apt to
give a rather false con¬
fidence abcut the degree to which
prices and inflation are controlled.
industry, last
to add to the
sales
World War II, in spite of the
currency
experi¬
equally
rising costs actually be¬
of the paper
could lubricate
our
hoists and
machinery with rancid
butter
that
the
the
decline
extinction
the
of
as
of
central
Randfontein
from
plants,
such
averages
might be reassuring; but they are of
1 it 11 e
significance
in
operations
ginal
to the available
where
use
farm
surpluses
for
fuel
in
power
wage
rates
and
prices
for
steel, machinery and other compar¬
able items largely determine
costs.)
Traditionally under the gold standard, gold
mining is
in a somewhat
depressed state in times of general pros¬
perity, and under current conditions the
industry would
probably have accepted its lot without too much com¬
plaint, if it were not for the unusual restrictions and
McLaughlin
practices that intensify the
prevent
the
bring about
corrective
some
hardships of the times
measures
that
normally
and
would
relief.
Although its role
far the
trial
in the
monetary mechanism is by
dominant function of
gold, the so-called indus¬
uses
of the
surprisingly
and
were
of
immense
approaching
Additional
wf ich has reached
the
D. H.
Rand
that
profits has been checked.
revenues
and
estimated sales volume at the
manufacturer's level
of more than
$1.1 billion probably will be
topped in 1956
by a moderate gain of 3 to
5%. Here again, research
developments of the past
500 other
on
ownership of gold, the United States is still on the
gold standard in the international sense. The
dollar is
still supported with
gold at a ratio established before
ex¬
continued to rise in spite of com¬
placency in high government and
banking circles that the depreciation
ac¬
year—including more potent
hormones, the Salk vaccine and more than
actually
be
unfortunately brought
an
tibility. At present, in spite of the domestic restrictions
t
hardpressed American gold miners.
^
the
one
President, Ilomcstake Mining Company
The past year
demand for
In addition to
serving the
conventional needs of the
industrial
*
economy, chemical sales prospects
for. 1956 have been strengthened with new products
which have
emerged from the industry's
laboratories
over the
past year.
of
forecasts
no
donald h. Mclaughlin
chemicals.
segment
the
that
way.
John E. McKeen
In> the pharmaceutical
of
show
Finally, the struggle between the Eastern and
Western powers
may influence the trend of business
the
in
expenditures in order
coqld
continued
year s
complete without
A" review
1955
curate.
came
1954, and expanding industrial
tivity this year,,naturally will
reflected
is
a
recovery of the magnitude
and current estimates
enced,
moderni¬
expected to equal
last year's despite short¬
Chemical sales last
year
estimated
$23
trends
ready depreciated dollar adjusted to the more
stable
value of gold and with
reestablishment of free conver¬
sterling ar.d then
unfavorable as well as the favorable
It is possible that the depression in
agriculture
to other areas.- The optimistic estimates of
capital
are
ages in some raw
business
If belief
be impossi¬
may
considering the
continued good
business
inventory speculation.
widespread, it
inflationary spiral.
waM.J.| individuals curtail their
unanimously, economists expect the current
activity to carry over into 1956, but
at
an
plant and equinment expenditures may be revised down-
upsurge in business
in
Maestre
will spread
President and Chairman of the
Board,
Chas. Pfizer & Co., Inc.
Almost
Sidney
circumstances, it is understandable that
tion may lead to unwise
in inflation becomes too
factors.
V
expenditures
having difficulty in
restraining inflationary pressures by monetary actions.
This problem is now
confronting them. There is some
danger, however, that the anticipation of further infla¬
common
an
construction
that the
economy will continue to grow while restraining
inflationary pressures. This objective requires a very
careful balancing of the monetary and fiscal
polices of
the Federal government. It has
long been believed that,
while an "easy" money
policy could not by itself induce
a business
expansion, a "tight" money policy could curb
an
unsound
expansion.
Now it is becoming obvious
that the
monetary authorities are
many
less of size, and transport
anything, anywhere
time. Common carriers have much to
gain from
.
is considerable discussion of the problems of a
"full employment"
economy.
We are now operating at
levels very close to maximum
output, and the monetary
authorities are attempting to limit credit expansion so
carriers, which comprise all the railroads
trucks, are the backbone of our national
transportation system. They serve all shippers, regard¬
of
types of commodities. Au¬
sales, for example, will be
there
opportunity to
The
and
reintroduced in the Congress in the
Since it does not involve
existing mone¬
tary procedure related to
gold, it is hoped that tne bills
will not be
actively opposed by the Treasury and
the
Federal Reserve
Board; and since no change is
proposed
in the current
monetary ratio between the dollar and
gold, the bills should not draw the
sharp criticism that
is usually directed
by a certain group of economists
toward any effort to raise
the price of $35 per ounce.
For t. e best interests of the
country and the stability
of international
trade, however, as well as for the welfare of the gold
mining industry, the need is as great as
ever for
restoration of the gold
standard with the al¬
probably decline moderately.
Under
likely to be negligible; but it would be a
step
Legislation to accomplish this end
are
present session.
lower in 1956. Construction expendi¬
tures
will advance, although
resi¬
fiat, rather than value of service!, determines who
gets the transportation business. Thus, the public is often
denied the opportunity to receive the best
transportation
at the lowest cost, and at the same time the carrier
best
able to perform this service is denied the
so.
same
tomobile
were
taken,
in tne right direction.
will probably be
antici¬
they did in the last half of 1955.
They may not, however, purchase
rec¬
ment
do
It is
$35 per ounce, at least as
long as
were
plentiful in foreign hands.
Consequently,
benefits to the gold
producers, if this action
dollars
tne
recovery in that
tend to spend at about the same rate
on
upon
system.
a
year.
economy.
Plant and equip¬
expenditures are expected to
and consumers apparently in¬
rise,
would, if made into law, place
competitive forces in the transpor¬
tation field and which would also
strengthen our com¬
mon
next
that
which
greater reliance
the
the
ment
equality to national
transportation
in
pated that business activity will con¬
tinue at a high level in other sectors
equipment and the purchase of an electronic
brain to simplify accounting.
;: Besides the technological improvements which are be¬
ing effected, the railroads are hopeful that Congress may
some
expectation of
area
reservation
restore
record
no
gondolas; and the demonstration of America's first full
scale train to be operated by remote control. Numerous
other improvements included the ordering of electronic
to
by the Treasury to industrial
Business
at
on
users at the
monetary price were terminated. Gold for
such purposes would
then be supplied
by the producers
at whatever
price the metal might
command on a free
market in response to the
available supply and the de¬
mand.
With t..e dollar
convertible into gold at the of¬
ficial
monetary price through foreign central
banks,
there is little chance for
the price of
gold on such a mar¬
ket rising much above
level in
the year included the installation of 20,000 tons of con¬
act
'
an
SIDNEY MAESTRE
Pro¬
drain
t~e gold stock
that is greater than the annual
from the domestic
mines.
In a very real
sense, this procedure amounts to
a
subsidy for the users
of gold at the
expense of the miners.
Tnis
inequity could be simply corrected if the
right to
buy, sell and own gold were
restored to American
citizens and if sales of
gold
Chairman, Mercantile Trust Company, St. Louis, Mo.
major floods
$10,000,000 worth of damage.
over
reasons
or
increment
brainpower which will help insure the nation's growth,
prosperity and continued leadership in world progress.
considerable progress on its modernization and improve¬
that are of more
political
monetary significance). The
Treasury,
the licensed users of
gold with the
the
monetary price, even though this results in
geological
metal at
a
imposing challenge to our secondary
school educators—a challenge to cultivate the scientific
der
ment programs despite the ravages of two
needs.
prerogatives for
Thursday, January 19, 1956
.
however, supplies
engineering falls far short of both present and
Here then is
mote control
which inflicted
rapid expansion, however,
ing. The chemical and allied industries currently require
a force of some
17,000 research scientists and engineers
backed by thousands of skilled technicians. Yet the cur¬
rent rate of graduates with degrees in
chemistry or
is
freight
handle
this
scientific manpower is likely to become even
100
classification
the
.
.
metal in the past decade have
taken
large part of the annual output.
a
Indeed, in
the United States, the
consumption of gold for such pur¬
poses has exceeded the output of the
domestic mines by
a
substantial figure.
All gold produced from the ore
deposits of the country must, of
course, be sold to the
Treasury (with the exception of unrefined or treated
gold recovered from placers, which
enjoys certain spe¬
of
ore
mining
present
even
record
uranium
will
add
reserves
vast
tonnage of
mar¬
and extend the limits
beyond the present extreme depths. (The
is held, I believe, in the Crown Mine
a depth of 9,876
feet.)
In the United States the Homestake retains first
place
the gold mines of the continent by a comfortable
among
margin and still ranks
the
growth
of
the
as
fifth in the world in spite of
more
prosperous
giants in South
Cycle Mill in Cripple Creek, the
dredging companies in California, and the base metal
smelters are still making a substantial contribution of
gold, but few of the small operations have been able to
survive, as inflationary factors beyond the control of the
companies continue to force costs upward to a degree
Africa.
that
can
ments of
The
be
Golden
only partially offset by technical improve¬
one
sort
or
another.
The record to
date is
one
in which management is
is discouraging to
through inflation.
justified in taking pride; but it
have the fruits of good work lost
Canadian gold output should be a little
higher than in
when the industry was so severely plagued
1954
by
strikes.
It probably will be close to
4,550,000 ounces,
though the mortality for gold mines continues to be high.
Shutdowns during the year have reduced the number of
;
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
producing mines to 60, whereas in 1953 there
and four years
94,
(such
the
now
that
President,
the article in the
as
Sunday, Dec. 11, 1955) assert
output of gold in the Soviet Union is
about 12,000,00u ounces, which would
place it close
that
WALTER
of South
with
scepticism
Africa.
the absence of definite
In
regard
to
the
regard
with
to
this
We
figure
do
other
in¬
year
operations, some
is justified, but
actual
Lincoln
The
not
than
by
has
1955
Real
know
of
any
projecting
been
construction
estate
country.
is
war
the
than
the
next
"Times"
have
to
been
estimates, the
substantial.
stock
to
be
lower
rather
In any
stock.
the
the
ceeded
Tnat the Russian gold can be a dangerous
weapon
economic conflict between the Communists and
is
obvious.
Let
hope that the great
strength provided by the substantial stock of gold still
in American hands will be recognized in time and not
'dissipated by failure to use it most effectively and in its
traditional ways to gain our ends.
WALTER P.
was a year of outstanding financial and techno¬
logical progress for Western Union. With the huge com¬
munications potential inherent in the development and
growth of integrated data transmission techniques, the
ever-broadening application of fac¬
simile, and other advances in the
telegraph field, the telegraph com¬
sees
no
boundaries to its
con¬
tinued progress in 1956 and the years
ahead.
envisage
took
Menge
any
Net income of $10,300,615 from op¬
erations for the first ten months of
1955 alone exceeded the entire year's
earnings of $9,384,986 for 1954.
our
It
is
should
previous
drawn
not
sur¬
have
ex¬
levels.
to
As
the
close
the
de¬
a
for
such
1954 to
in
upsurge
1955.
our
economy
The machine is
running at the limit of its practical capacity.
If
as
already
are
we
to avoid another round of
inflation, curbs on the use
of credit will have to be
kept in force. New ones may
have to be applied,
especially in the field of consumer
finance, where the volume of outstanding debt is in¬
disquieting rate
purchasing power.
a
future
The discontinuance of
which
—
casts
a
might
indicate
rising
vacancy
of
credit
rate in
to
necessary
have distinctly
real
savings
Continuance of the 1955 level
overbuilding,
already
certain
evidenced
Also
areas.
maintain
the
1955
inflationary implications.
in
limitations; and
the
any
by
a
the
supply
level
would
The supply of
country, while large, has definite
attempt to artificially expand this
supply is synonymous with inflation.
volume
of
new
life
insurance
written
in
1956
will,
no doubt, keep pace with, or even tend to
outpace,
expected high level of the national income.
In
spite of the large volume of new life insurance written
the
MICHEL
W.
Treasurer, Dome Mines Limited
The
gold mining industry, in Canada and the world
continues to be squeezed between the ceiling of a
fixed U. S. Government buying price and the rising
floor of production costs generally. In spite of this, both
the worid production and Canadian
production
of
gold,
expressed
in
ounces, increased in
1955 and will
probably show a further modest gain
in the year ahead.
In Canada, the
increase of about 4% experienced in
the year 1955 is attributable in part
to the greater amount of by-product
gold recovered by the booming base
metal
industry.
In
addition,
the
higher dollar value received for the
gold
produced,
arising
from
the
gradual
return
to
parity
of
the
Canadian
with
dollar
the U.
S.
dol¬
lar, stimulated production in a few
of the lower cost producers.
the
In
when
high level of residential build¬
ing in 1956 is likely, although
probably at a modestly
and
over,
shadow
a
lower rate than in 1955.
CLIFFORD
President
the
as
economy
such notable
place-from
The
,
company's stock
only
funds on the part
has temporarily, at
least, outstripped the supply.
Looking ahead to 1956 we cannot
of
Walter O.
over
.1955
pany
a
life
demand
creasing at
MARSHALL
all
1955
Taking into account the favorable mortality being
experienced, the profitable basis on which funds may be
invested, the relative freedom from investment losses,
and the expanding demand for our product, 1956 prom¬
ises to be a good year for the life insurance business.
it
the savings accumulated
insurance companies, now
amounting to some $6 billion an¬
nually, has increased sharply. The
by
us
President, The Western Union Telegraph Company
*
by
which
for
mand
event, however, the Russians undoubtedly have
world
increases.
in
the country is still under-insured when
higher level of personal
need for insuring against their dis¬
the
Employment
from
significantly
has
year
United
free
records
level
a
insurance
States, when allowance is made for the
short-term dollar holdings and otaer claims
against our
in
all-
an
of
mass
the
to
order
the
power
of
rise
all
margin.
attained
population
of gold that will provide them with financial
of very impressive magnitude. Indeed, the amount
at their disposal may be not far below the available
gold
a
broken
prising, therefore, that sales of life
the generous side.
on
close
at
The
business.
in
200,000,000 ounces, though from the best guesses with
regard to the production over the past two decades that
seems
been
active
writer
The
of
has
substantial
The accumulation of gold in Russia since the
bound
recent; past.
high, and automobile produc¬
can
Rand
fairly
extremely
and
continuance.
predict the future
has
States,
the
the
103
takes into account the much
incomes
tion
and
nearer
one
Insurance
time
has
be
Life
to
way
of
one
there is little doubt that Russian
production is consider¬
ably in excess of Canadian. It may well be more than
the combined output of Canada and the United
indeed
in recent years,
MENGE
National
Company, Fort Wayne, Ind.
annual
formation
O.
earlier, 122.
Recent reports from Russia
New York "Times," on
to
were
(363)
months
opening
of
dollar
was
Canadian
the
1955
at
Clifford W. Michel
a
premium of 3% or more, the gold production was paid
for at a price equivalent to less than $34 per ounce. By
the
end
of the
with the premium gone, the gold
year,
producers received almost $35 per ounce. Offsetting this
price improvement was a reduction in the cost aid as¬
sistance received from the Canadian Government which
declined
by
about
one-third in total amount as com¬
Under the terms of the
pared with the previous year.
revised Gold
Mining Assistance Act benefits to the low
cost producers were virtually eliminated. The continua¬
tion, however, of the Assistance Program will help to
keep in production the high cost producers and should
Continued
on page
104
The
split 4-for-l in
was
May and, in five months, one of the
primary objectives was realized; the
number
share
of
increased
owners
'
•
'
.
•
.
25%,
indicating
terest and
In
Walter P. Marshall
July,
of
and these
owners,
stock
an
wider
investor
ownership in the
offered
to
the
If you
share-
promptly subscribed for.
were
v
•
can
■
■"
Western Union also refunded its entire bonded indebt¬
edness
for
25
years
been reduced in
$38,500,000, at
than $1,800,000.
,
Western
Union
telegraph field.
in
seven
to
an
is
1955. The company's debt has
years from more than $70,000,000
annual saving in
interest of
the
in
world
leader
in
Desk-Fax
matters
facsimile
sending and receiving machines installed in
their cffices, and more thousands of companies will be
equipped with these electronic messengers next year.
With the
telegrams instantly in "picture" form by merely pressing
button.
More than 23,000 other firms are equipped
with printing telegraph machines with which they also
can send and receive telegrams quickly and conveniently
Western
Union's
high-speed,
automatic
national
network.
by Western Union to
a
Intrafax,
are
wide variety of businesses..These
buildings.
"Ticketfax,"
from
Accounting and Statistical
.
Corporate Planning
—
V
•
f
Welfare Programs
Pensions and
Budgets
Financial Relations
Public and
Economic
-
-
-
Feasibility Reports and
*
#
p
Market
>
Studies
Purchasing, Expediting and
I nonoptmn
Inspection
Valuations
placed in
was
Rates
Financing
Stock Transfer, Proxy
Gas Operations
Taxes
.
.
.
system, Western Union's
use
by two major railroads
Solicitation
handling of Pullman and reserved coach tickets
main
ticket
offices
to
railroad
stations.
Through
the
use of Ticketfax, railroad
passengers receive tickets
immediately at the counter, even though the main ticket
Engineering
office is miles away.
Western Union's revenues from the leasing of private
telegraph networks to industry and government have
grown from $6,200,000 in 1948 to a current annual rate of
$30,000,000.
New private wire networks
were
leased
—
Consulting and Design
Engineering Reports to support financing
.
in
1955 to firms in the
trucking, aviation, airline, railroad,
paper, aluminum, fruit and vegetable, oil and other in¬
dustries, while many other systems already in operation
were
Insurance
Services
Employee Relations
Another electronic facsimile
the
4.'
being leased
ultra-modern systems provide fast and eificient "picture"
communications between scattered departments, offices
for
.
.
.
Depreciation Studies
Facsimile systems, known as
and
of
Desk-Fax, businessmen send and receive their
a
over
'
5
benefit from help
more
facsimile
the
More than 25,000 firms have
'
-J"
.
company.
additional 1,000,000 shares
were
-i
in¬
.
.
THEN
YOU
programs
MAY PROFIT
FROM OUR EXPERIENCE AS
expanded.
The
rapidly growing use by industry of integrated data
processing to meet the needs for up-to-the-minute sales,
production, payroll and other control data is a jnajor
factor in increasing the demand for Western Union's
specially-engineered private telegraph systems. A 12,000mile network, the first
system specifically engineered for
data
transmission, is now being installed for Sylvania
Electric
Products, Inc. and will link their offices
plants in 51 cities with
and
giant electronic brain in Syl-
a
vania's
data processing center at
Camillus, N. Y.
A
10,000-mile transcontinental network being installed for
E.
F.
Hutton
includes
&
many
Company is competely automatic
radically
new
features
requirements of brokerage firms.
to
meet
and
specific
Commonwealth Services, Inc.
300
WASHINGTON,
D.
PARK
C.
AVENUE, NEW YORK 22, N. Y.
HOUSTON, TEX.
JACKSON, MICH.
#AArt\
ACI
1
v
104
(364)
Continued
sustain
in
jrom
page
103
the over-all rate of production for the industry
1956.
to the industry's profit making po¬
tentials, of course, rests in an increase in the price of
gold commensurate with the increase in the uncontrol¬
lable costs incurred in producing it.
Pending this event,
the managers of the industry can only scan every item
of controllable costs and squeeze the fat out of it. Incident
to this process is the introduction of more and more
mechanization which has, and continues, to increase the
production per man shift.
Of necessity, there are limits
for the nature of a vein
mining operatic does not lend itself to automation as it
is known in the mass production industries.
On the matter of the price of gold, the United States
Treasury continues to resist the demands of its cowhich
this process can go,
members in the
International
Monetary Fund for a
higher price. At the September meeting Great Britain
at last joined other Commonwealth members in
support¬
ing the agument that a higher price for gold is needed
£o as to increase the value of gold reserves of the central
governments of the world.
The South African represen¬
tative has long pointed out that the gold reserves of the
free world are insufficient to finance a volume of trade
that is today some 65% larger in volume than before the
war and 400% greater in value
expressed in depreciated
currencies
experience in the year
and
declined
now
dollar
reserves
from
$2,760,000,000 to
$2,120,000,000, 23% below the year's opening level.
Opposition in the United States to a rise in the price
stems from a belief that such a move would
only add to
the inflationary fuel and counteract the efforts of the
is produced.
where it
ment in
employment" in the United States, could well
to
in
set
rise in the price of
for
reserve
the forces
motion
that
would
gold, which metal still
the world's
lead
serves
currencies and
to
as
a
the
L.
of crude and products.
industry will continue to strive to become
efficient
in
of
source
providing the most effective
for the development of
and
improvement-in
entered
schedules
1955
under
a
the
year
of
heavier inventories
year
progressed, the
in
our
industry,
brought
between
better
a
As
we
enter the New
Year, the
feeling is general that we may rea¬
sonably look forward to a somewhat
reduced
rate
of
increase
approximating 4%.
geared
to
a
The
in
demand
industry is
bf
capital ex¬
penditures of similar proportions to
that of the past year.
In this pro¬
gram emphasis will likely continue
to
program
be
placed upon exploration
production of crude oil and
for
and
fa¬
cilities for increased manufacture of
Milligan
higher
quality
efficient refining.
In spite of the
very
gasoline
IION. JAMES
The
and
more
programs over
been
pressing search.
Prices for crude and products
the
present costs of exploration and de¬
velopment and of the higher costs for
expanding octane
numbers in
gasoline, as well as for wages generally
other attendant costs.
year
that
Experience
over
many years
The last general increase in
crude oil prices occurred
about 30 months ago. In
spite of increased costs in the
interim, the attendant increase in products prices has
been largely cancelled. The
artificial situation of excess
capacities in the industry at the request of
government
defense purposes continues to
carry its over-burden
for
The
pressure.
retail
marketing segment |has been
almost constantly beset with
regional price wars. Seem¬
ingly some of these disturbances have resulted from
unreasonable
relationships in the price structures in
some areas.
Courage is called for in dealing with the
situations of maladjustment.
v
The problem of imports
continues with
The
heavier
impact rests
producers. We recognize
producers and the need
if
well
as
in dealing
of
the
of all
will
fully
the
expect
further solid gains.
■
■
'»
■
* v
•
* .*
*
'
..
-1**
...
•
•*
* /
. *
—.
/
»'.
•
GEORGE L. MORRISON
-
>
President and Chairman of the Board
General Baking Company
The Fields Are Ripe
The overall
.
.
-
'
.
picture of the
year
1956 is justifiably opti¬
mistic.
The initial shocks and
apprehensions that came
with the adjustment to the
peacetime economy have been
absorbed in a healthy manner and have
expressed them¬
selves in
a
continuous
'
upswing in the
purchasing confidence.
\
phenomenal rise in the national
.
consumer's
A
economy continues in
spite of the in¬
termittent expressions of alarm from
sources who do not seem to under¬
stand that the very structure of our
country and the fundamental princi¬
ples on which it was founded, if left
to grow,
cannot help but exceed the
optimistic dreams of even the
most
least fearful economic forecasters.
This rountrv was made for bigness
and
widely distributed bounty and a
higher standard of living for every¬
The
one.
is
consumer
merely
ex-,
pressing his faith in his right to these
things by buying more of everything,
ueorge
L. Morrison
creating in the economic cycle a condition calling
employment and overall expansion of in¬
continue
clear
I
to
of
grow, and
hazard of
the
believe
the
purchasing power of
families will keep pace.
American
the
on
rise
an
baked goods, thereby
placing the responsi¬
the baker not only to intensify his competitive
on
on
efforts within
his own
industry, but to meet the direct
competition of manufacturers whose products are absorb¬
ing a portion of the market usually belonging to the
nation is not only
improving
day-to-day standards of living but
building for the future. In¬
is
we are aware of the fact that
increase in the consumption of food
prod¬
ucts, the baker must be extremely alert if he is to obtain
a greater share of the increased
market in order to show
bility
baked goods manufacturer.
In
the
case
of
General
also
demand
industry,
although the increase in population and national income
guarantees
inroads
shall—
we
dustrial activity.
In the baking
profit proportionate to the overall consumption. A wid¬
ening variety of food products distributed by those out¬
side the
baking industry, continues to make direct
signs that workers'
many
steer
we
to
Baking
Company
we
are
prepared.
peaks while construction outlays
already underway or planned for
the
in
new
the
the
domestic
of the problems of
some
for
upon
a
reasonable
foreign
the
foundations
of
problem
their
and
own
others.
to
be
ever
prosperity
as
The
industry continues to live under the
cloud
Federal regulation of the
production of natural
of
gas. We
believe the decision of the
Supreme Court in the
Phillips
case is
contrary to the expressed will of the
Congress
when it enacted
the Natural Gas Act.
There is no
monopoly in the production of natural
gas, as there
necessarily is in the distribution
of
gas
and'electricity
im the public interest.
Consequently no public regulation
is indicated or desirable in
the
common
good.
Already
surging economy abounding in opti¬
mism, the'greatest danger is to ride with the tide, accept¬
ing as a symbol of success the normal volume increase
expected to result
are
greatest construction year
in
James
P.
Mitchell
income for workers
are important
wage increases already
At least two and one-half million workers
are
covered by agreements which
specify substantial
wage increases to go into effect in 1956.
In
agreed to.
the effect of
tiated
mediately
amounts
is the
addition,
the many wage
last year will
spread
increases that
nego¬
affected
by these increases, although the
certainly vary. Another important factor
$1,000 minimum wage that will lift some two
million workers
on
to
more
a
equitable wage level.
minimum becomes effective
new
were
through industries not im¬
will
new
on
The
March 1.
It would, of course, be unrealistic to
expect the sharp
percentage gains of 1855 to be repeated in 1956. This
•;
is because so many of our
key industries are now vir¬
tually at capacity. In addition, some (skill shortages are
beginning to appear. Rather, I look forward to a con¬
solidation of strength and a
steady, sure growth based
record population growth and
an ever higher and
widely based standard of living. Many industries
shortages this year—not only steel but also
into
ran
such diverse enterprises as
building materials and paper.
Those shortages highlight only some of our needs.
We
need more schools, more
and
chasing
which
result
when
expand the real
we
understanding.
bargaining
this
fair
I
am
process
it
of
success
way
of
o.ur,
improving
undergo
will
has
this
many
remain
become.
1955
the
were
the
more
while at the same time developing existing
through intensified sales efforts and the intro¬
duction of related food products.
The burdens
imposed
the bakers of increasing pro¬
are made more complex
by having comparatively established price levels. But, in
my estimation, American ingenuity, coupled with con¬
stant analysis and research, plus the major factor of
duction
faith,
appeal to
Management
technology,
that
so
power
to
enter
an
supported by
characterized
hallmark of
Because
by
that
of
era
the
can overcome even
The fields of
both
cut for ourselves
J.
President,
coming
year
responsibility
a
D
in
the
more
and
can
These
economic
groups can be seen more
Effective
steps
can
gains.
The
clearly in
a
The
areas
of
Department
year
of substantial labor
job
discrimination
advances
in
of
workmen's
to
will
business
trial
will
As
is
world
who
given
such
time such
as
now.
the
efforts
J. D. A. Morrow
unemployment
measures
security and confidence of workers.
.
our
excellent
Minerals
modern
and
indus¬
growth.
The
that bolster
produce their own
Consequently, all over the
the search for minerals of all
is
increasing. Manufacturers
this
market, therefore,
serve
look
for
active
business
in
this
field.
Coal mining appears to have started a new and con¬
tinuing cycle of growth. Bituminous coal production in
the United States in 1954 was 392,000,000 tons. This will
probably
to be the lowest annual output of
produced by this country in the fore¬
seeable future. Output for 1955 is unofficially estimated
at close to 470,000,000 tons. Joy's' market research stud¬
ies indicate that output in 1960 will reach 580,000,000
turn
tons
out
coal
and, by 1970,
climb to 780,000,000.
This growth
rapidly expanding re¬
quirements in the electric power industry, on increase
in steel production, on the shift by aluminum producers
may
in
kinds, and toward further
compensation,
1956.
need first to
con¬
rehabilitate the remaining
insurance, social security and other
civilization
kinds
of
be
its
basis of
minerals.
a
of
bend
have
they start to develop their own
economies, they are forced to
the
and
problems
thus
should
throughout
.local
that
one
the
are
we
surplus, toward the elimination
all
Company
Nearly all the extractive mineral
industries
bituminous
of Labor
to
Nothing said here will apply to this
latter phase of Joy's look ahead.
i
peace,
be taken to help them share in the
toward helping
us
backward countries realize this truth.
general abundance.
this
to
Joy Manufacturing Company's markets. The other por¬
tion of our business represents sales to manufacturers
and
industries other than mining.
labor
problems of those who have not thus far shared
general
up
primarily to the mining industries.
industries represent something more than half of
freb society.
promises to be
attention
ripe and it is
MORROW
A.
can
tinuing growth,
to the
are
Manufacturing
Joy
will be able to rise.
industry and labor in
the
these barriers.
abundant share.
an
productive
labor-management
of
costs
opportunity
reason
and
strength of the economy
sense
on
distribution
and
improve¬
this respect, I want to reaffirm my belief that
about
era
markets,
markets
will divide equitably the increasing fruits
capacity and purchasing
In
in order to assure more rapid indentification at the
point of sale and greater sales results from our general
advertising. We continue to develop and improve prod¬
ucts and intend to expand into comparatively untouched
This article refers
fully confident that the collective
will
and
year
play
in
are
planned for ourselves a completely new and thoroughly
integrated advertising and promotional program, which
includes a complete redesign of our whole package line,
of the American family.
power
Important in the economic
and
every
pur¬
great number of collective bargaining agreements,
many
quite large, that were negotiated with dispatch and
ments
result.
The modern procedure is to fight
competitive weapon and application of re¬
search findings in order to gain the greatest possible
share. With these facts in mind, we have been continu¬
ouslystudying consumer habits and examining the con¬
stant growth
of outlets for our products.
We have
with
highways, more railroad cars
shopping centers to catalogue but a few of
more
the needs
a
which would
history.
Among the forces behind increased
relationship
states¬
with
year
We feel that in
our
increased
imports.
imports.
However, there is placed added responsibilities
upon
importing companies to improve their qualities of
mindful
are
income
an
even
in the balance between domestic
production and
We do not favor governmental
regulations of
manship
I
economy to make
favorable
for exploration
places in¬
creased emphasis upon the need for
the much attacked
depletion allowance in the tax structure.
areas
MITCHELL
highs after
strong
so
upon
vanishing
P.
is starting with employment and income
a year of very sharp gains. The
demand for the goods and services produced by our
unprecedented number of employed workers is still
new
at. record
more
severity.
.i.
for increased
the
of
.*
thus
Secretary of Labor '-ri
disappointing in the rate of
discovery and the greatly increased costs of
finding oil.
Drilling bits are reaching to lower and lower horizons in
heavy drilling
years, the results have
in
standards of living—
our
Our
adjustment
supply and demand.
-and
nation's
our
the basis for the strength of our great land.
vestment
experienced
over
As the past
about
not reflect
more
mobile
and
power
resources
is
increasing tempo of industry gener¬
ally,
and
more
Icareful
refining
'
.
do
;;
new
Industry
sobering influence of having
slackening demand and carried
the ever
gas
,
The
credit.
MILLIGAN
President, The Pure Oil Company
Petroleum
.
displace¬
a
according to surveys exist essentially in 20% of the
highways, largely the approaches to urban areas. i;This
problem can well be solved by the states under favorable
federal coordination.
its
R.
also result
can
prices received for natural gas at the wellhead to the
prices paid by the consumers. The long-time regulated
public utilities receive 90% of the prices paid by the
consumer, only 10% going to the producers.
The petroleum industry has a great interest in the.
highway problem. It looks for an early solution to the;
problem of eliminating the bottlenecks of traffic, which
inflation—and
"full
There
The petroleum industry can rest its case
the facts of reasonableness in the relationship of
upon
of
L.
:**.
.
„
available.
is
There
R.
'
industry which would tend to locate where
Treasury and the Federal Reserve Board to put a lid on
the present boom.
However, a sustained dip in the vol¬
ume of free world trade, or the nonexistence of a state
The
*
-
enactment of
the Harris Bill by the
Senate, as
passed by the House, can well result in curtailment of
supply and a trend toward intrastate use of natural gas
in circulation.
Perhaps England's change
the light of their own
1955 when the sterling areas' gold
basic
>
Commercial and Financial ChronicleThursday, January 19, 1956
the supply of natural gas failed to increase during this
period of uncertainty. Thousands of consumers are call¬
ing for gas. Short-term objectives of those opposed to
in attitude is understandable in
serve
• *
.
the
The ultimate key
to
•. * v
The
coal consumption
to
coal
a5
a
primary
is based
source
on
of
power
for their future
Continued
on
page
106
Volume 183
Number 5460...
■
-
*♦
Tfye Commercial and Financial Chronicle
1%
r-
v
i-j--.**
.<;
(365)
.
relying
upon advertising as a sell- those
for
tool—we have done reason- hopes.
'
ably well. Now:-may I point to_
Giving Them Hell, Again
(forcing farmers to sell out) is part of the
plan of the Eisenhower Administration. It is out of
sympathy (with the needs of agriculture;!j'
'
''They love International Harvester and General
Motors,- but they "are rather .cool ■■■"'';
!
;
r
we
Miti
"to
the old dirt
the
Administration
Eisenhower
the
.#•
of
condition
would
they
the
have
,
*
some¬
whatever
Truman
think,
for
know,
no
of
program
either
able
he
kept within
the
of
bounds
to
meet
tM_
f
-
the,/ company
continues; to
the marketing depgrthient
JgjCg^^^Ses
subdivided. The advertising der
the
Th#i
of
^t^lvof^marketS?
b$
off ^equate
adequate
short
ncrsnnncl
market^
marketing
^springs up; the sale's
existence; a
manager comes into
marketing, research staff is' d^veloPe<*- Frequently these various
subdivisions spring up without
sufficient thought as to their fr-
tegratiqn. What the key executives
g^^%3^n^^.'^'eye^coap«hy nee&tft
St L the^Lst
thl hrm
room
be
of
nut
orean-
?e?v
time to «nte.' ls to sit. doWn and
carefully study their marketing
organization.
them
01 tnem*
Clearly, there is
of
so
aet the
can
.
success
out their
They heed to. sort
major and minor
it.
all of
years,
know
For
lived
us
was
fool's
a
to
fact
in
me
in
"get
to
This
was
most
a
brought
forceful
when I
was
address
the
years ago
Toronto
with
away
to
ing down the street, I noticed a
sign in a second-hand furniture
store
the
which
ond-hand
read:
"We
furniture;
buy
sec-
sell
rare
we
antiques."
But,
and
is
at
today
this
end.
an
fool's
We
have
the
point where, in
competition
in
the
of these is that there
are
few
oversees
both production and
yet
I
could
give
you
example
marketing problems. Incidentally, after example of American firms
he also handles all matters of fi- jn which a single marketing execnance, personnel, and whatnot. utive will have as many as 20
Gradually the company grows. As people trying to report to him.
k does, the founder may pick a And in this connection I use
member of his staff to serve as "trying" advisedly.
an assistant to keep his eye on
Tbe
otber
rule
concerns
™
reached
fields,
just
years
ahead will be at ah all-time high.
jrom
Obviously,
14
page
the
of
scope
training
for
marketing personnel will vary
widely from company to company.
The Marketing
and
with
middlemen
their
uses
with
eonsumers
their
availabil-
(2)
of
a
the expansion
It assists in
market;
(3)
desired
by
have
few
in
outlets
through making it
...
,,
,
.
J 1 prepares trie way tor t e
salesman
through
prospects
with
company
and
the
acquainting
the
of
name
tne -merits
oi
a
product;
(5) It informs potential customof
new
who
as
highly competitive market. At the
other extreme are the complex
marketing problems of an organization such as General Elec-
result
of
foregoing
trie, with its
developments and new
continuously for
uged
a
customers
product
which is
want,
designed, and constructed, and which is sold through
adequate trade channels. On its
well
own
priced,
part, advertising will not
con-
such problems, it needs a highly
trained m a r k e t i n g force. But
whether a compaay Rices a relatively simple marketing problem
or those that are highly complex,
its training for its marketing per-
sonnel
applications of existing products,
as
in
the
case
of major plant
gram
Each company needs to decide:
equipment;
fully planned in
cstslogs
where
used—with represen-
3re
STATEMENT OF CONDITION
December 31,1955
expectations are guilty of wishful of which go into consumer goods
thinking. Advertising is but one markets and some into producer
tribute its share
(6) It affords the seller
formerly Modern Industrial Bank
products, some
many
Company of New York
a
A
the
the
Trust
problems faced
great in¬
a
a/id
the relatively
are
simple marketing
short period.
a
have
extreme
factor in a successful selling pro- goods markets, and with its many
gram. It gives best results when channels of distribution. To meet
easier for dealers to sell'
T.
sales
one
by the grey goods mill selling in
customer®.
many
anticipated
advertising for
Those
It helps to obtain desirable
dealer
ers
Revolution
crease
ity;
At
saler,
tp the sales proof the manufacturer, wholeretailer unless it is
or
care-
advance, proper
appeals are selected and Prc~
sentea, t/ie ri^nt type of medi3
differs
only.
degree
in
RESOURCES
Cash
/ts
(2)
thev
How much of this
training
1,305,716^1
52,873,356.43
Loans and Discounts
132,359.64
Accrued Interest Receivable
Customers' Liability for Letters
Credit and
of
323,803.56
Acceptances
244,751.39
-
■
tation
not
even
when the salesman is
of
course, should result in increased
sales and profits.
present.
All
these
uses,
are
used, and its cost is not
sive.
lected
that
it
channel of
could
distribuUon
help sell a
or
and
comnanv
Some Failures in Meeting the
have
Revolution
We
of
have
the
ing
areas
business
has
with the Market-
In
Revolution.
—
these
four
recognizing the customer
point-of view
product *
L
the
at
what they should
time
they
join
the
emphasizing
.
.
Z
mar-
Once
been
this training
developed,
assigned
to
it
needs
someone
sufficient
has
program
to
with
responsibility
and
authority to put it into effect. And
periodic
check-ups
Liability for Letters of Credit
be
both
finally,
struction, overpriced, or not even
nificance of product planning, and
and
323,803.56
Acceptances
Reserved for Taxes and Interest
414,190.59
Other Liabilities
398,647.75
Capital Funds:
$2,062,050.00
Capital Stock
needed to see that the results are
of unsatisfactory
875,132.54
Unearned Discount
keting research, stressing the sig-
was
$ 90,581,971.72
Deposits
discussing four
adjustments
made to keep up
and
firm.
been
LIABILITIES
with the difference between what
they need
Challenge of the Marketing
con-
which
$100,227,457.14
*
(3) How to provide their people
great
advertising
pensive advertising campaign
might make up for a poorly se¬
{he
<
So
is the reliance upon
today that I would
worn
you that some users have
expected far too much from it.
They have assumed that an ex¬
exces-
817,002.48
Other Assets
ioininfi
before
hrivp
22,486,412.87
Other Bonds and Securities
Furniture, Fixtures, and Improvements
people need.
should
$ 22,044,059.96
Hand and Due from Banks
on
U.S. Government Securities
n\ How much marketing train-
ing
are
3,750,000.00
Income Debentures
Surplus and Undivided Profits
1,739,233.88
..
82,427.10
Reserves
"
7,633,710.98
IN OUR
88th year
■■
v"-7.
'
*
assets just under
•
.
Offices
^
MANHATTAN
116 Fifth Avenue
528 Broadway •
$500,000,000
$100,227,457.14
*/('l
:7">'
.'r
•
1400 Broadway
318 Grand Street
BRONX
332 East 149th Street
BROOKLYN
1574 Pitkin Avenue *815 Broadway
781 Eastern
T^EAST NEW YORKNSAVI/^GS E^ank
FEDERAL
DEPOSIT
INSURANCE CORPORATION
Parkway
QUEENS
99-01 Queens Boulevard
THKEE OFFICES--ALL IN BROOKLYN
MEMBER
the
the
marketing end of the business.
ation of authnritv
Ti
still
AU t0° often k happens that this delegation of authority. It is still
assignment falls to a staff mem- a trait of all too hiany of us that
her who, although he is a fine we simply refuse to delegate to
salesman, lacks the abilities of a
rwUnnorl
inv
good organizer and administrator.
Continued on page 107
paradise
many
men
?r™s _a new company. Cash is jn this world who should have
hmited, and staff is small. The more than five to eight other
man establishing
the company people reporting directly to them.
,
a
Canadian Fpt.ail Federation. Walk-
the amenities.
Continued
mar-
no 'one
Some enterprising individual
accentuated
II1 and the' boom
now
several
here
We do
truth
been
followed
literally
way
however, that discussions of these matters
should
of
murder."
admiration
have
we
failure
^he MarkeUng Revo*
^
Lowln^lmi^tahce
paradise. It was a period of limited competition in whicn we were
home
farm
the
which
number
❖
the Eisenhower Administration.
or
has
War
World
in what We
They have been following
policy of driving farm prices down."
—Harry S. Truman.
readers well
this
person m
personnel
years
blame lies nowhere else.
our
a
by
"The present mess in agriculture is clearly attrib¬
to
the Eisenhower Administration.
The
As
not
As
,
utable
deliberate
company
best keting functions and to see that
any company—or for that matter, way to organize a marketing de- their marketing department is so
any college, any church, or any partment, but I think it is signifi- organized that their
major margovernment. Despite this fact, all cant to note that all too many keting functions receive due attoo many companies of the pres- marketing departments have ex- tention.
ent day are using marketing per- panded without sufficient attenin
a
study of marketing
sonnel which is poorly trained.
tion having been given to the way organization
the executives of
Of course, I am well aware that "he
parts fit together. Air too
company
should keep in
this
lack
of
capable marketing' often this has been the pattern: mind two simple rules. The first
...
a
is
_
ma
be put
may
important factor in the
"Today, the prosperity of our
agriculture is
in danger,
and the welfare of our family
farms is in danger, too.
"The worst is yet to come.
Harry S. Truman
■^Because, this year support prices
are
going to slide even farther
down Benson's sliding scale, and the farmers are
going to slide right into the abyss of bankruptcy.
❖
the
grow,
of
new
to whom I need to sell the proposition that personnel is the most
❖
*
nSS challenge
lution
the
frontier—failed to meet tne chal-
there,
thing about it long before this.
*
reach
way!.« The-Marketing Kevolution has caught many 'companies
without adequately trained marketing personnel. I am sure that
farmer,
done
"to
to
lenge^f the revolution in market-
If ^/
.
tailed
this
?had been really concerned about •
*
.
farmer.,..
nave
ing.-Our first failure
»•
1
4
which
ing
"That
•
lp5
; -V"'
?
Member Federal Deposit Insurance
\
Corporation
106
(366)
The Commercial and Financial Chronicle
Continued
from
possible. Recently we have completed extensive territory
analyses that provided the basis for expansion of sales
104
page
plants instead of hydro-electric energy, on
tonnages of coal in connection with atomic
duction, and
on increasing
lor American coal.
of large
use
energy
territories.
pro¬
The
"Western Europe is short particularly of metallurgical
coal.
in these
Many deposits of such coal have been mined until
they
C.G.MORTIMER
have reached the stage of declining produc¬
According to Western European steel producers,
they may well be increasingly dependent on imports of
high grade metallurgical coal from America for the
indefinite future.
The productivity of American coal
mines has made remarkable gains in recent years. This
now
tion.
results from
President, General Foods Corporation
There
for
opportunity to use newly developed machines of
greater productivity. In this respect American coal min¬
ing is far beyond anything in Western Europe, but Aus¬
tralian and South African producers using American
abandoned
and
worked
to
the
coal
provide
and
own
The
mines.
out
this
that
This
^must be done
country will require for
foreign needs.
growth in the mining of metallic
metallic
minerals
is
assured
for
the
and
non-
until
1970.
ores
period
The coming year appears to be one of definite prosperity
for the metal mining industries, reflecting the demand
am no economist, experience in thirty-odd
of food processing and marketing have confirmed
me
belief
a
value
more
products
people
In
convenience
If increased
to
our
consumption is
prosperity,
and
then
not in the farmer's
more
effort will
be
made
their usage
Other
to
the
obtain
estimated 50%
an
additional
increase in
by 1970.
metals
such
uranium, thorium, zirconium,
and lithium; to- name a few, whose role in increasing
nuclear energy developments has created active demand,
face the immediate future in short supply. Theijr rapidly
expanding use offers broader horizons for the sale of
mining and refining equipment designed to extract these
metals.
Light structural metals, such as aluminum,
magnesium, and titanium, are finding greater and greater
places in this nation's economy.
On
as
the whole, therefore,
perous
year
industries
1956 bids fair to be
for the metallic
and
for
those
a
non-metallic
and
manufacturers
who
pros¬
mining
their
are
chief suppliers.
ROBERT
industry depends
market
we
convenience
signed
or
H.
MORSE, Jr.
It is
This
widely recognized that the rapid increase
one of the most important factors in
business
outlook, but there are
comparable significance.
In nearly every phase of industry
there is an urgent need to adopt imothers
of
prpved processes, and to install mod¬
machinery and equipment. Ad-V
ern
in
vances
science
have
shown
more
and
the
better
and
way
engineering
to
turn
-
products
lower
at
Vigorous competition makes
imperative that the new ideas be
accepted.
The alternative is to risk
survival.
Still
another
'major
factor
that
makes the outlook favorable for the
makers of
capital goods, and there¬
fore for Fairbanks, Morse & Co., is
Robert H. Morse, Jr.
the
continuous
uptrend
in
wage
competitive conditions, increased costs
cannot always be passed on to the
buyer in the form of
higher prices but must be absorbed and offset by the use
all
the
-
and better
machinery and equipment.
impact of both population growth and industrial
progress is illustrated by the demand for
pumps.
Cities
more
this needs to
It
of
cities grow,
who
serve
cost.
is
each
carried
pumping systems
are
needed
to
materials.
The
scales
are
Our
of scales ranges from small
bench
scales with a
track
tionary income to buy things beyond mere food, cloth¬
ing, and shelter — things that add up to better living
standards; To. the grocery business, with its current
an¬
nual
volume of $36
in sales
billion, the predicted 25% increase
by 1960 would mean a chance to add $9 billion
to its volume.
The farm
diesel, and it has taken
applications.
tractor, for example, has
over
The
in countless
diesel
is
gone
stationary and
assured
a
secure
place in industry for many years to come.
•Fairbanks, Morse & Co. has expanded its manufactur¬
ing capacity by 40% in the last three
years in
prepara¬
opportunities
have
that
plainly lie ahead.
We
also brought every other
phase of the company's
operations, such as accounting, price
controls, and other
non-manufacturing activities, to the highest
efficiency
a
to those who would
spur
hesitate, look backward, and bemoan the. fact that
times
are
no
longer what they used to be. We need
willingness
change. The "good old days" were really
pretty drab
compared to what's coming.
to
I believe there is
whose
work
has
a
great
new
ahead for all of
era
helped to make America
the
us
world's
best-fed nation.
WM.
C.
MULLENDORE
redistributing
Product
level
devices.
time.
The
big bubble, which in 1955 was blown on
top of
the pre-existing inflation
boom, was the most forced and
synthetic of all the postwar years.
It is
now
generally conceded that 1955
another in
was
the series of "boom"
years since 1945.
This
word
"boom"
was
originally,
created
and
used
to
describe
the
Mississippi River when it was "ris¬
ing
rapidly
and
overflowing
its
banks."
Since
popular
use
similar
business
then, it has
as
term
a
condition
come
into
descriptive of
in
the
of
area
activity. When the volume
activity rises rapidly and
of business
overflows
Just
an
we
as
in
normal
or
"boom."
a
short
booms
power
(a
"rain
on
by
concen¬
period of time,
result
from
of
checks")
the market in
so
ab¬
an
a
falling
concen¬
relatively short, period of time.
The post-World War II Boom will
|
of
on
artificially stimulating
temporary larger
the
nearly equalitarian
thus has been raised-
more
a
consumption
and other
history as the "Consumer-Goods" and "ManagedMoney" Boom.
Consumer debt, which was
generally
considered to have reached too
high levels in 1941, was
reduced during the war, but has increased
by leaps and
bounds to astronomical levels since the
and intermediate-term debt has
war.
Short-term
multiplied sixfold and
mortgage debt has risen from $37 billion to
$88 billion since World War II.. And in 1955, consumer
debt (80-90% of it installment
debt) rose by another
nonfarm
to
$36
billion, and mortgage debt by $13
Fourteen billion dollars
automobiles.
of installment
debt is
inflationary-
Just
mains
true that what goes up, abnormally, must come
down, despite the insistently wishful reliance on a "new
era" with its built-in stabilizers.
CLARENCE J.
MYERS
President, New York Life Insurance
Although final figures for 1955
estimates
indicate
billion.
owed
that
are
records
new
Company
not yet
were
available,
in
set
all
major fields.
The total of ordinary, group and industrial
insurance in force reached $388 billion at the
year-end,
an
increase of 11% over 1954 and
150%
II.
since the
Life
close
of
World
War
insurance written
by U. S.
companies climbed to $55x/2 billion.
The assets
by
of the
industry increased
record $6.3 billion to bring the
total to $90.8 billion at the end of
a
the year.
The accomplishments of 1955 con¬
firm our confidence in the future
of
U.
that
S.
life
insurance.
We
believe
the
industry will continue to
participate in the broad-economic
advance of the
both
in
nation, and will
volume
afforded
its
in
and
the
policyowners.
look
ahead,
grow
services
Let
us
Clarence
J.
and
Myers
attempt
industry will
be a decade hence, at the end of 1965.
Since the turn of
the century, life insurance in force
has grown, on th&
average and over the long pull, at a rate of better
than
7% per annum, which means that the
protection pro¬
vided policyholders has more than
doubled
to
project
where
the
every
10
years.
Barring wars and major recessions, the total of
life insurance in force should
approach $800 billion by
the end of 1965, and the assets of the
As
a
matter of
industry should
fact, these projections
may be much too conservative in view of recent
trends of the industry.
growth
Moreover, the nation is still
judge by any reasonable stand¬
grossly underinsured to
ard, so that there is much
room
for future growth. In
1955 the average U. S.
family carried only enough insur¬
to continue its income for one
year and five months.
If disposable personal income continues
to grow as in the
ance
past, our 1965 projection of $800 billion of insurance in
force would still provide protection of
only two years'
annual income. We are therefore
about the
We
are
understandably bullish
long-run outlook for the life insurance
also
optimistic
about
the
industry.
immediate
outlook
for
1956, but our optimism is tempered somewhat by
the extremely rapid
pace of the recent expansion. Busi¬
ness
generally
there
are
promises to be very good in 1956, but
possible weak spots in the automobile
industry,
in residential
on
the
construction, and in farm income. There
hand, many elements of exceptional
other
strength.
These include—to mention only a few—the
high and rising level of consumer income and expendi¬
tures, the recent stabilization of Federal
expenditures,
the enlarged budgets of business for
plant and equip¬
ment, and the probable increase in expenditures of state
and local governments for
schools, highways and other
public works. Despite the various economic cross cur¬
rents, 1956 should be another excellent year,
although
probably be known
in
20%
boom,
a
ahead, however, this year or next, there
be grave danger that the controls will
slip, the
brakes will no longer hold, and the fundamental law of
balance will again have to be dealt witlb.
Yes, it
re¬
are,
caused
are
normally high volume of purchasing
into and creating a demand
or
have,
river floods
a
business
trated,
regular
abnormally high rainfall
trated
Wm. C. Mullendoro
its
of
to
seems
reach $180 billion.
Chairman, Southern California Edison
Company
dial units to railroad
year just ended.
The diesel
engine, of course, has a bright prospect for
the year ahead.
The success of the diesel in the
railroad
field has tended to obscure the
wide gains it has made
and
The
therefore
This opportunity should be
an* in¬
complete line
of 300 tons that can be
measured and recorded whether the
car is
stationary or
in motion.
The demand for scales in
1956 and beyond
should continue the gains made in the
mo¬
They make jobs which
they build new markets or
thus adding to business volume; and
they create capital and keep it in motion— turning over.
In this
growing, creative economy the American people,
according to the economists, are going to have more
money to spend on more things they want—more discre¬
move
capacity
a
consequences
to hurry "progress" by
But it adds also
our economy;
frequently
own
collateral
many
basis.
increment of value
old ones,
channels,
tegral element in automation.
are
which
of
three important ends:
of today's high speed, automatic
processes,
providing accurate and automatic measure¬
the
concept
delivered, their
In many
scales are
for
consumers.
livehood are in effect "middle
people." While
motions of all these "middle people" add to the
cost of the products as finished and
a
tion
de¬
products and their
earn a
the increased volume of
sewage in systems designed for
lesser loads.
Pumps are being used increasingly also in
various industrial
applications to move gases, fluids
and solids.
mobile
art,
be
must
this fact that is so often overlooked
by critics
harp on the "high cost of distribution," and level
pot shots at the "middleman." Indeed, it seems to have
escaped many of us that today the majority of
people
to the surface.
in other fields.
thinking,
who
faced with a problem in
providing water for growing
populations and the heavy demands for water
by indus¬
try. Everywhere the underground water levels are
drop¬
ping, and it is necessary to drill deeper and
deeper into
the earth and use more
powerful pumps to bring water
of
Mortimer
creative
a
that
operations,
be stressed—its
"borrowing con¬
amply justified by
excessive
National
is
are
ments
food
consumer
-
stream
by
is
to the consumer.
Under
The
As
to
broad
a
G.
our
has become
super-additive
almost
as:
through "selective credit control"
start
must
necessarily adds its increment of
—and
out
costs.
it
of
consumer
into
service
through
help to support
is
the
rates.
Charles
fields, but in the consumer's kitchen.
the
long"
There
Gross
distribution, to satisfy today's demanding
tions
The needs of America for hew capital equipment are
population
built
We
future"
That is, the additional purchasing
power
which flooded into the market from
the proceeds of the
increase in consumer and
home-mortgage debt caused
a still further
rapid rise and overflow of business volume
in the latest of the
Managed-Money Boom years. This
flood crest must
recede, the flow of commerce must
return to its normal
channel, and the overdraft upon
future earnings power will have to be
made good by a
painful period of subsidence, probably to a period below
the normal level for "too
production,
how effectively
on
the
this evidence.
has tried
a
in the food
products.
our
Serving the modern
with
broaden
in
success
from
Reserve
productive
our
We
all the
President, Fairbanks, Morse & Co.
enormous.
our
demand
sumer
Federal
a
drove
have been on a big and
prolonged spree. The
fundamental principle that a period of excess calls for a
period of adjustment or restoration of balance, will in¬
evitably assert itself. The "Welfare State" experiment
key
parallel
a
by
limits"
pression."
help us
higher living standards.
One authority has labeled this "con¬
sumerism," and, for my money, it is
the only suitable "ism" for our coun¬
try and our people.
ever
truth is that
supplies needed to meet
buy them.
additional jobs
brought
and the addi¬
tional wealth distributed by the
pub¬
lic demand, for better living
achieve
unsustainable
upon continuance of the
needed to
words, the
into being
to
living standards built up in reliance
rapid rise; high and rigid wage
levels, tax and other cost levels and hence, of "break¬
even" levels; and, worst of
all, there ensues the era of
unsettlement, discontent, and disrupted human relations
which inevitably flow from a
period of downward read¬
justment—sometimes called by the naughty word "de¬
the
buy, the American
helping create the pur¬
for
iron, copper, lead, zinc, manganese, molybdenum,
chromium, nickel, vanadium, antimony, and others.
Many of these metals are in short supply today and more
in
Thursday, January 19, 1956
The conclusion
recently stated
official that in 1955 "we
such
they
power
other
that, in demanding
and
are
chasing
methods and
equipment, are matching our performance.
Competent authorities estimate that in the next 10
years
approximately $1,500,000,000 additional capital
must be invested in coal lands, in new mines and under¬
ground equipment, and in their surface plants to replace
the busi¬
on
Although I
years
combination of excellent management and
a
great dynamic forces at work
are
front.
ness
the
its
considerable
very
volved
.
Bank
capacity
expenditures and efforts in¬
developments are an accurate measure
of our appraisal of the business outlook not just for 1956
but for well beyond this new and challenging year.
demand in Western Europe
.
.
perhaps not quite
so
exuberant
as
1955.
Life insurance sales depend upon
many factors, but in
peacetime are rather closely related to the level of dis¬
posable
very
personal
large and
another
income.
is still
-Since
growing,
disposable
we
expect
income
1956
to
is
be
banner
year for the industry.
Life insurance
purchases should exceed the record $55V2 billion set in
1955, and the total of life insurance in force at the end
of the year should reach about
$425 billion. The particu¬
lar lines of business to be favored in 1956 will
probably
follow patterns established in the postwar period.
In the
on
Continued
on
page
108
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(367)
107
-w
Continued
from
their
105
page
The
Marketing
ty.
Revolution
assistants the
our
to
need
go
to
ask them
we
is
of
As
only in
that free
their
speech,
carry.
and I have
you
Marketing Men:
.So much for the failure of many
catch
with
up
the
Marketing Revolution.
In con¬
cluding Liese remarks, may I very
briefly suggest that those of us
engaged in marketing need to give
recognition to a final pair of ob¬
servations.
ence
auto-
as
retirement
amount
instruments, radio communiand
navigation
devices
during
cation
in
.
with
its
loss
evitable.
As
of
freedom
we
in¬
is
about
a
our
living,
go
may
due
Dec.
1,
1970
(convertible
through Nov. 30, 1965). The de¬
bentures
this
debentures
goal
petitive
us
of
maintaining
economy.
Let
a
no
com¬
one
of
mately
3.98%
to
maturity.
is
and
young
women
the
rights
and
free
to
pass
on
to young men
of
the
obligations
future
of
a
society.
thereafter through
at $12.50 per
1980
Nov.
of
order
to
position
better
for
to
for
and
its
customers.
expects to
other
30, K1965
share.
The
7
1
pur-
.
by
issue
an
additional $150,-
.
,
„
**
n
11
r>
With McDonald, LvanS
-
(Special to the financial chronicle)
KANSAS
Armo
CITY,
,
•
Mo.—Fred
...
en^rout is w
^
J.
ij
c onald,
amongh.EVans & Company, 1009 Baltimore
and
Mr.
Armentrout
was
formerly with Prugh, Combest &
ac-
counts receivable.
precision equipment for aircraft
sufficlent
..
principal amount annually.
and
company
requirements
1970
of the
retire through the
may
.
things, to finance increased Avenue.
inventory
j
,
sinking fund
projects
these funds,
use
period
June
company
place it in a\
accept larger
new
the
,.
working
corporate
orders and undertake
The company is a manufacturer
-
available
in
poses
into
stock at $10 per share to
common
be
capital and other
The
convertible
are
forget that the greatest obliga¬ and including Nov. 30,
tion
will
are priced at 103%, plus
interest, to yield approxi¬
accrued
principal
annually
June 1, 1961
maturity, and, at its option, the
Monica, Calif.; • Grand
Mich.; and Elyria, Ohio,
company's general funds
$150,000
debentures
retire 50%
Santa
the
of
of
through
electro-mechanical equipment and
aircraft pumps. Plants are located
4%% Debentures
im¬
guided missiles, such
matic flight controls, flight refer-
Smith, Barney & Co., on Jan. 16,
portant job to do.
We need to
Rapids,
offered
do our part to make a
$3,000,000
of Lear, Inc.
competitive
Proceeds from the sale of
41/4%
subordinated
debentures, the debentures will be added to
economy work. If we fail, statism
daily jobs of making
to
an
in
each and every one of us realize
that we are, contributing toward
Two Observations for
businesses
exist.
interested
and
Smith, Barney Group
Offers Lear, Inc.
competitive
a
men can
individuals
marketing,
authority which
along with the
responsibility which
It
economy
-
they
freedom
freedom of worship, their freedom
from fear for their personal safe¬
Land and prior thereto with Mc-
Sinking fund provisions require Donald & Co.
First, while marketing is grow¬
ing in importance and will conr
THE
tinue to grow, it is but one factor
in the success of any company.
FROM
Just
STUDEBAKER
because
we
people—and
nition
marketing
are
that
greater
unit.j
OF
CRAFTSMANSHIP
v
recog¬
is
being given to what we
do—let's
net
get too high-hat.
Let's not forget
that what the
marketing department does need
is to be integrated with what goes
on in
the production department,
in finance, in personnel. The en¬
tire organization must work as a
•
HERITAGE
AND
PACKARD
COMES
ENGINEERING
•K
-
•
a matter of fact, unless there
this
careful
integration, 4'ie
As
is
marketing
asked
the
to
best
-cannot—continue* indefinitely
sell
*
department
may
be
the impossible. Even
marketing department
do
to
poorly engineered product.
a
Neither
it
can
to hold
be
together
counted
upon
poorly finance!
a
companyr . Marketing is but one
factor in a company's success.
As
the
final
a
the
saved
to
seems
which
I
have
think
is
r\i ew
important one I have
today.
It is this: It
mentioned
must
observation, I
cne
most
that
me
marketing
me i
recognize the important part
have to play in the main¬
of a free private economy
they
tenance
in yovr country and mine.
In the main, both in the United
States
and
grown
great
gives
Canada,
on
which
By taking the
turning him free,
we
have secured high per capita
productions. This high per capita
and
production
capita
supports
high
a
consumption—a
level
nations
larly
which
is
envy
cf
those
behind
the
Iron
In the United States, for
Curtain.
example, with less than 7% of the
world's
population,
50%
the
Gf
support
world's
than
more
produce
we
output;
half
we
of
the
college students in the world;
three
phones
as
In this
per
consump¬
the
if
times
per
as
hundred
cne
we
tele¬
many
news
and
five
automobiles
times
per
Packard
built
and
as
of
Now
coming out of
our
on
our
placed
we
have
who
him
in the
ever
IDEA?It is
simply this: We believe that
production lines without sacrificing craftsmanship
new
you can see
Studebakers,
the first
a new
v;
the
has
under
restrictions,
of regulations
eventually
statism, and
the
that
loss
of
of
the
on
results
statism
those
.
.
that
be
our
Clippers, and Packards.
Packard
and lines found in
deliberately de¬
cars
new
—
a car
.
in
results
freedoms
.
.
a
cars, as
it Was
-
thirty years!.
Clipper deliberately de¬
signed to set
new
standards for
medium-priced cars—with features
In
short, you'll see a
the
brilliant
other
car
within
price!
destined to be
choice in fine
new
no
hundreds of dollars of its
in¬
many
marketing field. Experience
individual
.
cars can
born of THE BOLD NEW IDEA:
cars
America's first choice for
have allowed to develop
growth
A
(
NEW
BOLD
modern
luxury
countries what they are,
have
automobile capital. And today's
everything Studebaker-
IDEA—the idea back of
Corporation is doing.
;
abroad makes it crystal clear that
in
news
NEW
manj
we
individual
creased
the
the
as
design and true pride of workmanship are not dead, but live, today, stronger
than
hundred
one
countries
our
this
in the
BOLD
signed to upgrade America's idea of
of
which
all of us!)
THE
goal must always be to build not the most cars but the best cars... that individuality
Yet curing the last 50 years in
made
means
of
What is THE
people.
taken
is
people
compared with the next highest
nation,
both
exciting, changing land of ours there's nothing quite as spine-tingling to motorists
(and that
everywhere, and particu¬
of
have
*
individual.
individual
tion
1
have
we
system
a
large amount of freedom
a
the
to
in
array
of
new
.
.
.
a
new
designed to
fire
—
a
Studebaker
deliberately
set the low price
car
that
field
on
outstyles, outper¬
forms, and outvalues any other in
its
price range!
motorcars in every price class-cars built to
highest standards of craftsmanship in the industry today-cars that are the embodi-
mentofTHE
BOLD
NEW IDEA.
which ycur people and mine have
long cherished.
There
world,
is
no
either
country
today
or
in
in
the
years
by, in which the state
taken direction of its citizens'
eco¬
nomic
,
STUDEBAKER
•
CLIPPER
•
PACKARD
has
gone
away
life
from
without
these
also
same
£^orie> card //n /rver+t-
^
taking
citizens
WHERE
PRIDE
OF
WORKMANSHIP
STILL-
OOIVIES
FIRST!
108
(368)
The Commercial and Financial Chronicle
Continued
from
page
is fast becoming one of the country's great research
106
ters.
last 10 years ordinary
doubled, group
^ood
increased
insurance has
credit
that
believe
to
reason
fortyfold.
over
these
undertook
cen¬
pects
for
growth
and
prosperity
bright
are
and
Since commercial aviation
got its start three decades
problems have been numerous and complex.
them, it appears, have been any more pressing
or difficult than those which
will confront the industry
in 1956.
But this is just another
way of saying that,
None of
in 1956.
ARTHUR J. NEUMARK
JAMES J.
Partner, H. Hentz & Co., New York City
President, Studebaker-Packard Corporation
President, Automobile Manufacturers
Although optimism in generally high for
Association
is
a
ROBERT L. OARE
there
1956
marked degree of caution in market prognos¬
very
tications
Again, the past year, the American people have baf¬
fled the economic seers by demanding more than the
contrasted
as
with
a
year
and
ago
well
expected
ment
output of motor vehicles. According to the
estimate, 1955 production will reach the record
of 9,225,000, of which 7,975,-
will
000
be
this
As
passenger
003,056),
variations
theme, "The Saturation Point."
3 That theme is
than
the
of
J.
million
than
unless
cars
could
we
We
the
now
have
than
61
my
tion
opin¬
J.
•
Nance
-
find
fuel
some
million
other
The
much
a
ments.
The
has
out
been
around
50%
which is sub-normal.
Portland,
The outlook for individual industries is mixed. Headed
for seemingly less favorable volume and
profits are
Me., to
cently estimated.
Portland,
Ore.,
one
statistician
Even when the forecasters of automobile
re¬
registrations
available
data, they go far astray. For example,
1938, when there were just under 30 million
motor vehicles registered, the Public Roads Adminis¬
late
as
as
tration said it would be 1960 before
we
ing what would
such
had 38 million.
automobile, the American peo¬
ple did not tolerate for long the age-old restriction of
bad
been
and
than
more
that
pulling and hauling between
legislators about "good roads" for
•registrations
demand
put
and
had
end
to
we
more
Commercial
and
than two million surfaced miles that
aviation
challenging
So, when
of
"The
new
point," it is well to recall that
automobile industry has always defied conventional
praisal.
even
It
has
times
many
confounded
the
when they were optimistic.
the
the
and
are
hilt.
If
the
pace
Donald
mind
the
apply
to
contain :the
delicate
credit
course
and
for
icKfi
1956
would
ie
is
a"d
ness
and
<">'"•
may
in
the
Can
to
when
between
be
in
effect
by
stand
not
the
the
action
of
rank
of
one
as
the
record
have
little
immediate
effect
on
the
over-all
should
economic
High employment and consumer income should
be maintained in the
year ahead.
The large volume of automobile sales this
past year
brought with it a greatly expanded use of installment
credit.
vast
the
To
extent the credit terms extended
some
amount
the
on
of
installment credit required to finance
outpouring of new cars has been characterized by
shorter
down
payments
there has been
ever,
recent
and
months, and there
longer maturities.
evidence
some
be
can
of
question
no
intentions of well-managed sales finance
maintain their credit extension
policies on
The
upward
trend
placed
automobile
level.
in
automobile
sound basis.
a
time
outstandings
to the
as
companies to
sales
After
credit
How¬
tighter terms in
at
has
not
dangerous
a
all, automobile paper is still relatively
short-term and the American
public is completing con¬
tracts as scheduled with minimal loss
to liquidation.
organization is confident of its ability
principles in 1956 and to main¬
position among the three largest
independent
automobile finance companies in the
nation.
of
a
its
new
now
likely to
seems
of
months
rather
of
airlines
are
HOWARD P. PARSHALL
President, Bank of
There is
a
song
about it).
billion-dollar
a
commercial
know
same
reassuring
fact
airlines
of
is
the
are
Airlines—with
—
operating
set
is
course,
our
1, 1955, Northwest Orient Airlines' inter¬
operations have been conducted without sub¬
poses
H.
P.
Parshall
Are
there
—
—
then
debt
there
is
ap¬
our
debt; and
of
All debts
are
our
carrying
legitimate
having good
desirable
our
debts for the
on
and
economy.
pur¬
extremely
It is only
when
they become too large and un¬
manageable that they cause trouble.
burdened with debt that both the husband and
wife must
very hard
in order to keep their heads above
John
owner,
operate without government subsidy support
trans-Pacific and States-Alaska routes. Its domestic
Press"
and
rial
became
the
first
United
States
years.
prog¬
of the airline.
Orient,
It
Hawaii,
Alaska.
to
It
renewal of its certificates to
won
Seattle-Anchorage
was
authorized
to
service between
Chicago and New York,
tween
and
Chicago
around"
service
acquired
put
a
of
on
delivery
Detroit,
between
fleet
in service
getting
on
the
provide
as
well
shuttle
and
or
New
run;
and,
in
inside
be¬
It
were
addition
to
Douglas
Hawaii.
•
other
major airlines
of
the
nation,
Northwest
capable and prominent newspaper
among other papers, of the "Detroit Free
a
"The Chicago Daily News," wrote an edito¬
in which the title contained a wonderful
year
Happy
Land.
Now
we
come
synonymous
to the second of
with
Love
our
two words that is
and
Marriage, namely Taxes.
country are very high and their distri¬
inequitable. Naturally, taxes have to be
high
Our taxes in this
bution
when
idea
is
our
of
income
national
and
municipal debts
are
high.
The
confiscating as high as 90% of an individual's
is, in my opinion, absurd, and I believe dishonest.
In other words, the
many, because of their
number, put
their hands in the pockets of the few.
It causes all sorts
of
Like
this
Knight,
phrase, Danger Signals in this Debt Happy Land. I would
like to repeat that one phrase and wish
that you, the
reader, would be impressed by it—This Debt
direct
as
"turn¬
York.
Constellations, which
Orient
more
a
Detroit
Turbo
the
and
and
DC-6B's, it placed
orders for more of this type and for Douglas DC-7C's.
It stepped up flight frequencies both to the Orient and
<
Na¬
our
now within the trouble
range? Quite frankly, I
know, but I suspect that we are. We have young
married couples who have
my sympathy.
They are so
editor,
the
velopments to the
is
credit
we
water.
route
rapidly
There
$275 billion
debt
business.
air
Northwest
During 1955, various developments marked the
in the importance and diversity of its industry.
New York State
Thruway has already brought many
of
do not
Jan.
ress
government
farm
purpose
on
1
very
looking
even
municipal debt of cities and states—
I
1956.
with
you
not
consumers'
mortgage
United
during 1955
$70,000,000. It
exceeded
revenues
them.
Debt
our
helpful to
of
—
Taxes.
first; and I
proximating $27 billion—our colossal
the
record
substantial increases in
to
going to bore
of
many
tional
mounting, the
which,
all-time
an
debts
them up; but we do have debts and
completely satisfactory.
Orient
our
statistics
many
are
also
not
are
must
that
fashion—Debts and
Let's look at
am
investment
aviation
Commonwealth, Detroit, Mich.
an intriguing title (that's all
The title is Love and Marriage, and
every time I hear the title of this song, I
always think
of two more words that
go together, and it seems in the
I
well write the profit
loss figures Of the next decade.
is
the
that has
power¬
operations have been without subsidy for several
intelligence and self-discipline of busi¬
consuming public.
than six million passenger
more
should
picture.
carrier to
in
businesses and major industrial
and residential de¬
area.
The St. Lawrence
Seaway will
follow. Perhaps not
generally recognized is that Buffalo
Oare
for automobile production and sales. The
gradual
downturn expected in the current
blistering tempo of the
automobile industry to a more moderate
Board.
prospect
the time
Frontier is busv,
nrosnerous. and
L.
Robert
power
work
a
The main question
prosperity?" and the answer
in
1956
as
years
sidy, despite the fact that its rate of payment for carry¬
ing the mail has been reduced by the Civil Aeronautics
inflation
A further increase
rate is a
its
national
hoping
chart
be
familiar
ahead
Since
to
too
Is is Published-
we
be
growing
The
new
and
re-discount
«r>
seem
alone but
deflation.
the
•George A. Newbury
restrictions
boom
could
most
looks
Government continues
to
the
expend¬
registrations,
slightly
so,
1956
to
purchasing
entering this period in
sound shape.
Traffic volumes are
growing, revenues are increasing;
Nyrop
Northwest
am
nation
up
W.
outlook
possibly
becomes
car
may
and, but for the fact that costs
rapid, a major readjustment seems
ultimately inevitable. It is with this
in
It
scheduled
cannot
confidence, we, as a
spending and mortgaging
absorb
Even
cars.
the
revert
to preserve sound credit
threshold
matter
a
fortunes
States
help but wonder how far and how
long we can ride so high without
running into some stormy weather.
With full
employment
undue
of
that
domestic sales,
1956 may well be a time when
One
The expectations for a continued
high level'of busi¬
in 1956 and the
many reasons for such opinion have
been so thoroughly
publicized as to require little com¬
ment here.
With an eye to the
past and some painful
I
would
In
new
venture.
ness
the
in
made.
Company,
'30s,
by
amount
tain
fully affected by decisions that
ap¬
prophets,
Buffalo, N. Y.
the
many
years.
So
It
of
the
on
which
and Traders Trust
in
NYROP
leisurely,
come
and
recollections
is
more
GEORGE A. NEWBURY
President, Manufacturers
than
jet aircraft. The change¬
over, which earlier promised to be
theme
saturation
selective
more
than
the old
this
and operate
or
on
indicated
an
dispos¬
models, there is
annual
average
iture of 4.5%.
As it enters 1956 it must, while meeting the
multiple
problems of the present, lay its plans to finance, acquire
will not put up with inadequate
evidenced, I think, by the fact that, in the past
■decade, when construction of new public roads fell
sadly short of growing needs, almost 3,000 miles of toll
planned.
variations are heard
1949-1955
spent
consumer
new
era.
roads is
built
aluminum,
President, Northwest Airlines, Inc.
the century-old
today.
people today
roads have been
of
The Associates
us
That
be
DONALD W.
stalemate,
began to lay out and improve the highway net¬
work into the
serve
an
will
movements
century. After World War I, when total
climbed to the 10-million mark, popular
a
oils,
industries
years...
political
state
metals,
highlighted that I believe the over¬
all market swings in 1956 will be less pronounced and
As late as 1904, we had less than 150 miles
rural roads in this entire broad land, although
had
Federal
stores,
areas,
of the factors herein
roads.
there
chain
and
buying
By the same token I believe periods of market enthu¬
siasm will encounter sizable realizing sales. It is because
in the foreseeable future.
After the advent of the
of paved
retail
attractive
aircraft manufacturing, chemical and
drug. Declines in
stocks in these groups would afford buying
opportunities.
ing to provide. But, that has not stopped highway trans¬
portation's growth in the past, and is not likely to do
so
steels,
as,
be
to
appear
utilities and electrical equipment. Additional
that should do well this year are the
cement,
How many can we use? Perhaps the only limit is the
amount of good highway mileage we are able and will¬
of
pace
motor, railroad and building companies. The stock mar¬
ket will, in my opinion, be cushioned
by a good buying
demand for favored groups and individual issues
during
periods of reactions. A number of groups are approach¬
put their heads together and base their prophecies on the
best
level
sharp in¬
a
motorists
5.4%
strong possibility
buying pattern will
Neumark
,
pay
American
a
Arthur J.
more
of
average
high
was
passenger car produc¬
all-time record
an
able income for
The 46y2
billion gallons of gasoline they burned in 1955
would fill a canal 20 feet wide and 18 feet deep from
the
new
estimated
re¬
influence is the possibility of larger dividends inasmuch
as corporations have been
very conservative in disburse¬
vehicles.
motor
to
evaluation
to
1955
higher
a
It must be
lesser rate
a
the
of*ap¬
proximately 8 million units of which
about; 7.2 million will appear as
domestic registrations;-" Whereas in
secu¬
earnings and
:
dividends. The dynamics of price movements have been
considerable and even if earnings are as
good this year
as last there is
lacking the past incentives for anticipat¬
ing any material improvement in security prices from
recent high levels. A factor that could have a
stimulating
limit.
more
returned
normal
Jatnes
Ay res, the Cleveland banker, warned that
was
on
in
crease
membered that stock prices-generally
have
Another forecaster that year was more optimistic.
20 million
Accompanying
prosperity in 1955
,
an
degree of selectivity.
gasoline.
late Leonard
during
in
year
V
probably be
that "the
saturation point" had been reached.
In 1921, when
registration ex¬
ceeded 10 million, Roger Babson, the
famous economist, declared that we
couldn't possibly operate more than
12
best
econ¬
past year.
least
at
ion
that
the
swings in the stock
market will be smaller than last year
and there will
declared
Morgan
predict
peacetime
important bearing
rity prices. However,-it is
partner^ of the-banking house
P.
Product and personal income
should be at
than the gains
enjoyed
Political decisions and trends will
have
registered in the United States, -one
of the
second
to
history.
*
vehicles
motor
safe
our
old
old as the auto¬
as
200,000
:
reasonably
In 1903, when we had
mobile itself.
less
the
that
on
one.
further rise in the American
a
during the first half of 1956,
although the increase
measured by the basic barometer
of Gross National
as
ber
may
we
new
All signs point to
omy
will undoubtedly be
Whether it is as good
year
last year will depend on a num¬
of imponderables, but it seems
as
(1950's total of 8,expect to hear
previous record,
some
good
a
cars.
considerably
exceeds
the
f
Associates Discount Corporation
should be.
latest
■
>
Chairman, Associates Investment
Company and
there
In terms of Gross National Product, consumer
spending power, savings and employ¬
high
responsibilities increase, so too will
opportunities.
as
^^;-v
NANCE
its
ago,
well
founded.
persist
a continuing
study of jet aircraft. It expects
place definite orders during the early part of 1956.
to
power,
the
at
gateway to Canada and at the center of
America's greatest consuming markets, Buffalo's pros¬
There is
will
trends
Supplied with cheap and abundant electric
located
insurance in force has more than
insurance has more than quadrupled, and
Thursday, January 19,' 1956
...
dislocations—high
should be
a
salaries
limit of 25%
or
and
high
at most 30%
prices.
tax
on
There
anyone's
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
income.
tirely.
their
The capital gains tax should be abolished en¬
Men seek and should have diversifications of
investments. At different ages in their business
careers, it is a good
at times, and this is
tive
activity and consumption in the name of fighting
inflation, while using them to stimulate such non-pro¬
The
Treasury
Department
and
the
Federal
families
Reserve
national debt and rediscount rate
use our
as
guessed, favors
I
distribution
of
income
our
tax
tional Product
than
repeat, the elimination of the capital gains tax—and
a warning against uncontrolled or
unlimited debt.
we
The
Government's expenditure for defense next
about
be
the
same
in
as
1955—no
The
trifle higher, somewhere around
$35 billion.
lieved that industrial expansion in
plants and
will continue during 1956 and
this direction than
more
in 1955.
was
It
is
a
be¬
equipment
to
continued
prosperity
during
1956,
not
be
surrounding
has
area
here
is
plenty of water available.
constitute
kind
some
of
What
Year-end
and
S.
of
should
considerably
by Government officials
predict 1956 will be another
I hope these judgments turn
more
was
have
we
hearings
automation last fall.
turning out twice the number
produce
more
are
we
trained personnel, if
low.
the short¬
just
year
ended
very prosperous year.
not all groups shared
has
teeen
a
equally in the
The
prob¬
The number
fronts
the
cannot
one
to
go
for the age
of jet.
evidence that the carriers
thinking of the jet era in terms of
Years of intensive study and
More
Every step taken today is
just ahead.
As
a
assurance
matter of fact,
we
conceived.
do not wish to
Furthermore,
jet plane will be
latest
highway program with proper weight
future
more
our
picture is
an
intriguing
promise for those who
t
problems of monopoly and industrial concentra¬
are
Farm buying in
many areas
being cut to bare essentials.
one
All in all, the
which holds much
planning and preparing today.
Continued
,
on
SAN FRANCISCO
Patnian
STOCK EXCHANGE
the giant firms.
the
United
States
the number of operating firms
has
remained
stable.
In
contrast,
the number of business firms
grew at an average annual
rate
of
50,000 in the four-year period,
net gain of
tarded
tured
200,000.-
1949-1952, for
a
by the heavy weight of taxation and
a
an
economic system
open
competitive enterprise with
a
and
Although national employment is
unemployment
totals
low,
are
and
THE
OF
WEST
still
a
distressed localities in the country.
time,
we
19
major
smaller ones with serious
The spread of
ical advance in
jobs
will
not
However,
unlikely
a
market
news
releases.
great
At the present
and
areas
important market for all dually
by late
73
Approximately 400 issues of eastern, western, Hawaiian and Phil¬
ippine companies
are
traded
on
the San Francisco Stock Exchange.
unemployment problems.
automation, like
are
As
every
other technolog¬
Preferred commission
long
as
new
industries
open
up
of
rates
are
extended
to
approved members
Registered Exchanges, the N.A.S.D., and Banks.
created, the displaced will be absorbed
add
to
reduced
some
traded securities affected
an
history, will involve the displacement of
individual workers.
new
labor
hours after the close of Eastern Exchanges, the "Big
over-all
are
two
Board of the West" affords
.
high
there
many
have
Open
retain
complete cessation in the
growth of the number of operating firms.
and
BOARD
manufac¬
scarcity of credit.
We cannot have
and
BIG
Small business growth is being re¬
a
net
level
growth
of
in
unemployment.
production, which
time this year, may
is
Daily Sessions 7:00 A.M.
un¬
to
2:30 P.M.
not
have exaggerated
Closed
Saturday
employment effects because of the labor saving effect of
.
automation.
The past three years have
301 Pine Street
produced the curious
para¬
dox of using tax and credit
policies to restrain produc¬
air service
economical to operate than
type piston-powered aircraft.
by the Congress.
relatively weaker position compared
to their giant rivals than
they were in 1952. The expan¬
sion of our
economy reflects primarily the expansion of
in
confiden¬
studies indicate that
sense.
Since the end of
1952,
of careful
to the airline
Industrial
prices
are
at
peak, while farm product prices are
at an 8-year low.
It doesn't make
Wnght
110
distant
things in air transporta¬
con¬
a
a
evaluation have
years
country
businessmen today are in
Firm
jetliners and extensive programs to
incomes.
Small
same
finalized,
are
today is how to
stop the decline in farm prices and
is
the
after
ignore.
problem that
In addi¬
authority to tha
fastest, most comfortable, most dependable
superiority in this field.
favorable consideration
new
tially believe that the jetliner of 1959 will provide the
We need to
given to meeting the farm-to-market road needs will get
As I look at the economic
picture
for 1956, I see a number of
areas of
weakness and some potential
we
our
A pay-as-you-go
good times.
lem spots, which
we
of
the
lose
carriers
actively preparing
our
Unfortunately,
Recent deci¬
major air routes.
customer that bigger and better
want to realize
we
the full benefits of automation and if
before.
preparation for needed facilities and personnel must fol¬
ever
The
our
into today's jet purchases.
gone
The Russians
are.
made by the
are
interesting, indeed.
are
tion lie
on
we
strengthening their present positions, the air¬
tomorrow.
high priority
on
be
longer
impressed with the need to focus
attention than
ever
given broad
finance their purchase are
of trained technicians and engineers, when I under¬
took the
are
I
a
gains
results, if all these grants
orders for fleets
records, Federal
given
The
While
lines
over
has
non-scheduled
markets.
stable
h by the Congress.
issued
of record prosperity.
out to be fully warranted.
Flex¬
of market insta¬
With school enrollments breaking all
age
year
cause
aid to school construction will be
WRIGHT PATMAN
executives
the chief
and the businessmen in the depressed localities.
Congressman from Texas
statements
business
tion, the Board
nizes that the
■.
HON.
number of carriers
a
market conditions.
Congress recog¬
chronically distressed areas are a national
problem. Local efforts will be supplemented by some
form of Federal assistance to help unemployed workers
assurance
'
U.
tition than
so-called
drop in farm income needs to be arrested.
alone,
sions of the Civil Aeronautics Board have multiplied tha
The family-size farm that we want to encourage
basically needs access to low lost, long-term credit and
might also be well advised if they
already doing so, to look after their supply of
not
particularly
to the giant corporations by moving toward
Lines
Air
an
industry in 1953 will be achieved in
an atmosphere of far greater compe¬
lower-income
bility.
tions of the
country
water.
and
more
whole.
a
Whatever
loss, it should
revenue
business
a
inter-city
of
mail ton miles.
in
In connection with small business,
urgent to equalize their opportunity
ible price supports are
authority, so that as fast as this expected expansion takes
place, we will be able to supply the water. Other sec¬
are
is
The
am
water
a
expect.
relative
country.
do
over-all
small
that
increase of from 13 to 18%
in revenue passenger
miles, 20 to
25% in cargo ton miles and 3 to 5%
W. A. Patterson
any
belief that
increase at
than
United
expect
modest graduation in corporate tax rates.
going to quote held quite a lot of meaning for the writer.
First, Detroit probably has more knowledge of manufac¬
turing technique than any other section of our
our
as
For
give
a
a
of air travel will
travel
to
on
higher average level
of economic activity; that inter-city
common carrier travel will keep up
with that level and that the volume
taxpayers tax relief.
it
five counties would
probably constitute the fast¬
est growing section of the United
States, and they gave
two reasons. The latter of the two reasons
must
to
forecast
rate
incurring
possible
their
rapid
led
would
year
1956 will surpass the
there will be
money
or
Second,
base
a
Without
meeting not long ago, composed of busi¬
highly rated economists. It was their con¬
clusion that
during the next 5 to 15 years, the section of
Michigan in which Detroit is located and its
we
are
billion dollars in the first half of 1955, despite the
most favorable stock market conditions.
a
the
of
turn
there
however,
were
over¬
good year for
indicate
im¬
pressive traffic records which they achieved in 1955.
Our experts are looking for a traffic increase of from
10 to 15% for the industry.
They
the
at
particularly true of the dividend tax credit. Net
raised from stock issues actually declined by
new
half
and
I
developments
time,
same
produced the results members
This is
which
evidence
inequity
Some of the 1954 tax revisions have
in the tax system.
expected drop in automobile
production, we may be somewhat under the average.
four
All
For example, there is wide sentiment in
trying to apply some part of an expected budget
permit^ At the
a
A. PATTERSON
W.
that the scheduled airlines in
resulting from these
1956
If Con¬
can
we
President, United Air Lines, Inc.
will be proposals to correct some imbalance and
the whole United States, I look for our
economic
activity to be somewhere between 93% and 103% of 1955.
Here in Detroit, due to the
I attended
those weaknesses and make
legislative action,
proper
everyone.
unprecedented increase in
an
-
Gross Na¬
our
no greater today
policies designed to
credit
•
of weakness and vulnerability.
areas
takes the
surplus to reducing our huge national debt, if economic
For
nessmen
and
-
•
gress
capita basis is
per
Tax
also induced
conditions
farming.
course,
a
dollars,
increasing atten¬
the economic outlook for 1956 is marred
years.
favor of
of
except,
on
mid-1953.
dangers
other
will be expended in
On the other
hand, auto¬
mobile production will
probably be down somewhat from
the peak of 1955, and so it is believed will
be residential
housing. All other segments of our economy look for¬
ward
by certain
of
movement
The Congress in this election
year will, to some extent,
be influenced by politics. However^ I see no reason
why
the legislative outlook for 1956 will not continue to be
based mainly on economic considerations as it has in
year
less—maybe
speculative
difficult to overestimate.
in order:
will
a
In summary,
both industrial and bank mergers.
activity and what
expect for next year, the following observations
may
are
in
They have
economic
present
our
fed
competitive system of enterprise.
stimulate investment at all costs have instead erected a
house of cards, a flimsy superstructure of inflated
prices.
more
burden—and
sounds
Concerning
instead
Measured in terms of constant
tions have been, on the
whole, effective and in the right
direction. The writer, as you have
equitable
have
108:
by Members of Congress, who want to preserve the
come
meas¬
help control and keep our economy from going
high or too low, and I compliment them. Their ac¬
too
tion
unprecedented magnitude.
to
ures
tion and how to solve them will receive
ductive purposes as passing assets back and forth at
higher and higher prices. Tax savings and credit instead
of being channeled into areas where
they could produce
real wealth and raise
living standards of lower-income
policy to change their investments
precluded to a great extent by the
capital gains tax.
Board
(369)
San Francisco 4,
Calif.
page
110
The Commercial and Financial Chronicle
(370) 1
110
Continued from page
All
109
S. PETERSEN
T.
these
factors
high gear.
will
combined
keep the
in
economy
Chairman of
(2) The decline that
by stimulating sales of distillate fuel
may occur sometime in the middle
will result from, first, a decrease in home
starts. Already this tendency is apparent, primarily be¬
cause
of the tight mortgage market and the difficulty
of obtaining new mortgage money. Secondly, it is highly
uncertain whether the automible companies will be able
to sell as many cars in 1956 as they did in 1955. Thirdly,
money is tight; and while credit controls work slowly,
ultimately they do achieve their objectives.
Finally,
oils for
the fact should not be overlooked that farm
of
President, Standard Oil Company of California
-
industry In 1955 experienced *
The domestic petroleum
substantial 7% growth in demand for its products as
a
the strong recovery in business from the
decline of 1954. Colder winter seasons than in
1954 also contributed to the increase
result of
a
mild
heating.
Abroad, the industry enjoyed an
even
greater increase in demand—
11%—reflecting the continued expar sion of foreign economies and the
inability of Western Europe's coal
industry
to
meet
that
region's
growirig fuel requirements.
Prospects for 1956 point to further
sustained growth of the U. S. and
Free
Foreign
World
economies,
though at somewhat lower percent¬
increases than in 1955.
age
Domestic
for
demand
all-time
an
this
record.
Elsewhere in the Free
is
expected
the
fuels,
importantly
more
.
World, total petroleum demand
about 9]/2%, with the emphasis on
which are now figuring more and
in the industrial development of
to rise
heavier
case on about the same scale as in 1955. A substantial
of our outlay for these purposes will be
allocated to further exploration and development of off¬
proportion
shore
oil, which is already proving
the industry. ♦ -
valuable asset to
a
F. RAYMOND PETERSON
'Chairman, First National Bank
S7
and Trust
Company of
Paterson, N. J.
"
The year 1955 will go down in
history as one of the
most prosperous that the United States has
enjoyed in
peacetime.
Toward the end of the year the country was
in the midst of a great
boom, evidenced, by the fact
that the aggregate number of
people
gainfully employed totalled nearly
65
mililon, at
before.
at
were
higher than
wages
Production
a
and
high level.
7 1955, stood at 132
vember,
the
figure
duration.
7% higher than
While
demand
total
for
credit
volume of
ing
member
the
is
end
of
was
loans
banks
the
strong;
of
in
all
94
be cited
give
—
assurance
year
Raymond
P«*ter«ni»
Banks
considerably during the
Federal
Reserve
The dis¬
year.
raised
was
during the year and stood at the end of 1955
2i/2%, the highest in over 20 years. Rates of interest
charged bank customers rose, too, with the prime rate
at
more
the
October
volume
of
The
as
by
mortgages
units in the third quarter
billion,
credit
consumer
increased
example, the
during the 12 months
about
$5,665 million, and
onerto-four family home
on
at
was
an
annual rate of $14
compared with $11.2 billion
equity
market
reflected
the
a
year
ago.
prosperity
of
the
of
standard
is, of course, impossible to state what the future
bring.
Judging, however, from the information
which comes across
my desk and talking with a num¬
and
businessmen
all
the
over
appears
country,
somewhat
as
fol¬
(1) Business activity will continue at a
high level
for another few
months, followed by a moderate decline
which should not go
very far nor last very long.
The
degree of the decline, naturally, is bound to
be influ¬
enced by internal as well as
external political
develop¬
ments.
At
the
momentum is
beginning
of
the
year
the
business
very great and is bound to keep business
activity at
a
companies
are
high level for
booked
to
several
months.
The
steel
capacity for the entire first
Quarter.
The output of automobiles is
large. Construc¬
tion of industrial and
commercial building is at a
high
level
all
over
the
country, and
wages
are
still
rising.
automo¬
sonal
demands
and
for
commer¬
and
the
sea¬
funds
purchasing
the
ever-increasing pait in the
brougnt fuxtuer credit
an
power,
banks.
to
the
seen
Beard
of
Governors of the Feaeral
System
during this past year exercise a re¬
straining and stabilizing influence in the actions they
have
taken
in
and
money
the
field
of
influencing
the
supply
of
credit.
Looking into 1956, there is certainly nothing to indi¬
in the early months that tnere will be any great
cate
dustry for 1956 indicate that management in this field
is looking to longer-term demands for their
products
rather than reflecting their expectancy for the next
year or so.
If one tries to look beyond the first six
months
the
a
gross
to
only
not
but
to
and
ever-increasing
miles flown
supply.
Wages can be
expected
before
least
a
be
R.
Lee
Warren
Pierson
The
ord.
gross revenues
ble
must
tinue
to
the
reduce
revenues.
find
the
if
answer
margin
we
between
to
are
7us
of
such
expenses
Super-G
our
putting into service
as
Constellations
Constellation
believe
that
with
non-recurring
were
and
fleet
this
the
heed
a
rec¬
the
-
car¬
for
standardized
major
expense
begin to show
now
a
and the
Douglas DC-6A
airplanes, flying one-
These
third faster than the commercial air
freighters
of
their
in¬
half
behind
in
general
use
prior
introduction, and carrying
to
twice
in
showed
financial
In
exenses
have had to contend
we
the final mail pay order and the cost of get¬
our
big
new
Kansas City mainten-'«
in
all,
with
more
than
much
as
1955
to
one-
payload,
what could
be
done
i%.
.
r.wSwO.t
we
TWA's
33,0Q0 miles of domestic and international routes,
billion
482
million
passenger
miles
on
there is plenty of reason to be optimistic about next year.
serve
the
more
than four and
a
TWA expects to transport in
plans
in progress to provide
comfort,
ficient
safety,
convenience
half million passen¬
1956,
we
have
them with the
and
an
many
utmost
economically
in
ef¬
operation which will keep air travel one of the
lowest-priced dollar value commodities
on
today's
mar¬
Air
company,
freight
million ton miles
passengers
three
own
last year
over
This
million
recorded
the most important increase of volume in our
our
Ihistory.
58%
four
flying
ket.
in
such
planes to the
new
A second is the pros¬
Several of the major
1049H
models.
our
conversion
and overhaul base under way.
All
gers
flying
now
of
'
ting construction of
To
addition
with advanced equipment.
Other
ance
the
of its
new
level, this is because of substantial
gain.
with
is
one
which
1954 peak
I
PRESCOTT
get delivery this year of
all-cargo freighters of a type
already has proved its pro¬
ductivity
in
the
development
of
freight traffic. I refer to the Lock¬
net
..
operations should
our
be
will
riers
a problem we have in TWA, too, but we feel we
beginning to see daylight through this overcast.
Although our net income for 1955 will show a decline
rest
peak.
should
industry should experience
them
fleet
shipments.
It is
new
W.
pect of lower rates for large volume
are
from the
One of
all-cargo
con¬
and
gross
air freight
United States.
most vexing problem is that of balancing
against constantly-mounting uncontrolla¬
We
their
at
prices
over,
best years of growth in 1956.
Several dynamic factors can contribute to
facing these problems and seeking the
through common effort and pooled research.
costs.
continue
is
President, The Flying Tiger Line, Inc.
are
our
to
year
relatively stable deposits.
expect similarly encouraging
Perhaps
the
the first half of 1956, there would continue
strong demand for bank credit—firm rates—and
of the mileage on interna¬
We
excess
for
to
developments in 1956. But, although
our traffic and earnings graphs climb higher, there are
still problems facing us as an industry and as individual
carriers.
considerably in
events of importance occur a~d *he
follows the present indicated pattern, it would
that in the field of commercial banking, at
All forecasts point to the fact that
can
could expect
one
unforeseen
no
tional routes.
we
perhaps
the demand for steel is
now
appear
In TWA alone
domestic routes
on
and
decline, remembering, however, that
the
If
tourist traffic represented
approximately 58% of total passen¬
ger
demand
consumer
economy
sky
and 80%
could expect to have reached
one
somewhat higher. In my opinion, these and other fac¬
tors indicate that business activity will have stabil.zed
or decreased somewhat
by the end of 1956.
indi¬
volume
year,
steel demand
Inevitably
beyond.
greater acceptance of this
even
of
of
United
the
in
Europe
see
as
revenue.
of this
point, for ir stance, where automobile output would
exceed
begins with the auspicious promise offered by
air passenger volume and, consequently,
1955,
teriors.
It
bankers
7
States,
the United
of
airlines
scheduled
the
year
the
of
PIERSON
LEE
WARREN
20
The Outlook for 1956
namely,
experienced,
credit, playing
on
We have
*
demand for goods and
well for the future.
the
Chairman, Trans World Airlines
non-recurring
ber
rises,
living
every
the business outlook for 1956
lows:
'
services is bound to grow. This augurs
country
as well as the great confidence which
permeated
segement of the population.
pro-'
s.imulus
and has grown rapidly.
change in the relationship of the consumer purchasing
There is every reason to believe that a major decline
power and the volume of production to meet it.
Gen¬
in business activity will be avoided. However, -ours is
eralizations are sometimes dangerous, and I would ex¬
a free economy, and as such is bound to have its ups and
pect that in 1956 perhaps more than in 1955, there will
downs, but the long-range Outlook' is' favorable;the'i be
companies and businesses not following the pa.tern
productive capacity of the country is rising, and com¬
of ever-increasing activity.
petition is increasing. As the population grows, and the
The increasing capital expenditure estimates of in¬
answers
than 20 years.
year was marked by a great deal of confidence
which induced many peole to
mortgage their future in
order to meet their
present demands. For
volume of
'
the American economy
the country has been prosperous
The
ended
decline in business
any
period is that we have averted a major *
depression. Ten years have passed since the end of the
war, and with the exception
of 1948-49 and 1953-54,
when minor readjustments occurred, the economy of
money
four times
3y2%, also the highest in
tion
in the postwar
our
count
total
that
thing about
cursion inducements.
P.
which
great
growing demand for money and credit in rela¬
its supply resulted during the past year in an
increase in rates to prime borrowers of from 3 to
31//2%,
in
prime commercial paper from 1% to-3%, and in
Treasury 90-day bills from about 14/4% to over 2V2%7
could
more
many
by the mass market
by low-fare tourist
travel and special seasonal and ex¬
was
the
lequired for a high rate of plant
The accelerated increase in the demands for
consumers
represented
authorities,
the
consumer
demands
Reserve
remarkable
The
Pope
expansion.
commodity
at
F.
Bayard
serious recession.
a
of
expancung credit from the
cial banks for inventories
activity, when it sets in during the year, will not assume
the character of
much
would; mention
-
fields
This
combined—and
factors
I
the
as
general field of industry, the growth
in production and
activity required
ties, hence induce public works.
these
of
of
year
allf eco-:
biles and homes, based considerably
the availability of bank
credit,
resulted in peck production. In the*
the credit policies of the Federal Re¬
undoubtedly will be reversed. Credit
then will be available, and money rates should soften.
This will stimulate the flotation of tax-exempt securi¬
cates
the
report¬
cities
we
a
activity
on
authorities
This
The
ago.
vided
signs of decline,
All
indices.
consumer
on
income of many people in certain parts
of the country. The moment business activity shows any
ing
restraint adopted by Federal Reserve
rates increased
at
pace
disposable
States
were forced during that period to sell
$7.2 billion of Government securities. Reflecting the
great demand for money and the policy of active credit
of
the
Air travel reached new highs dur¬
their customers,
rate
that
true
was
business
bypractically.
two
omy
be of short
Moreover, on March 1, 1956 the minimum
hourly wage rate will be raised from 75 cents to $1 00,
and this will lead to a general increase in wages, hence
increased
approxi¬
mately $7,500 million larger than a
year ago.
The banks, however, in
order to meet the requirements of
I
it
consideration.
fifty-five
unprecedented
increasing.
available.
a year
Nineteen
borrowing, as well as of mortgage credit, has been too
fast, basically the economy of the country is sound.
The population is growing at a rapid rate; the standard
of living of the people is rising, and wages are constantly
new
The dollar value of department store
sales up to the middle of December
was
merits some
the old-record
at 144 in No¬
was
latest
City
general unanimity of opin¬
a
nomic
For
January,
Committee,
ion on the 1956 outlook for business as it
applies par¬
ticularly in the commercial banking field that the in-,
dividual's expression on this subject has
grown to sound
almost trite. Perhaps this very fact
whole.
The decline, when it sets in, should
(3)
ever
The index of
to be such
seems
of the country as a
serve
POPE
Corporation, New York
measured
distribution
industrial activity which in
There
income has
Conclusion
Jour
Marine Midland
F.
Executive
the
year
Western Europe.
'- Under the circumstances, the industry feels justified
in proceeding with large-scale capital expenditures, in
Thursday, January 19, 1956
.
declined and the farmer has not shared in the prosperity
in
petroleum
country is forecast at 4%
T. S. Petersen
higher, with a 4V2% increase ex¬
pected in gasoline demand. In crude oil production, this
should be reflected in a 225,000 barrel-a day increase
over
1955, with an aggregate of 7,000,000 b/d setting
in
the
.
BAYARD
'7777:77:::-;h7
■
.
fleet
on
traffic
our
totaled
approximately
59
system, a gain of approximately
1954.
gain
were
on
we
was
due primarily to the fact that in 1955
able, for the first time, to operate
our
transcontinental
plane produces
more
schedules.
than twice
as
a
lull DC-6A
Since
many
this
air¬
ton miles per
flying hour than the DC-4, heretofore the largest air¬
craft in commercial freight service, we were able to show
an increase of more than 20 million ton miles of freight
traffic, compared to 1954.
The Lockheed 1049H aircraft, with which we will re¬
place our DC-6A fleet, will have a productivity factor
nearly 50% greater than the DC-6A, enabling us to move
a
still larger volume of traffic when these new ships
come
into service.
Along
with
new,
more
productive
aircraft,
we
are
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
(371)
hopeful of creating a more
attractive rate structure for
large volume shipments. Such a
proposal is now before
the Civil Aeronautics
Board. If it is
accepted,"rates on
large volume shipments will
drop as much as 30%.
Such
use
reduction will
a
be
further
a
incentive for the
freight by industry, which, in
1955, moved
products by air than in
any previous year.
of
more
air
From
offer
the
standpoint
sound
of
the
opportunities
carrier,
for
earnings.
a
these
good
'
',
>
While operating costs have
increased
tions, the new-type freight aircraft
provide
to this trend.
The DC-6A
operating costs
from six to
are
Tool
of
many years.
off-set
an
Show
C.
year
new
automobiles,
chines,
other
iences
of
comforts
present-day
to
come
telephones,
continue
very
strong, and with
emphasis on sales, we
increased
our
ex¬
pect
that our total revenues will
exceed those of
any previous year.
The amount of
money which Gen¬
eral
Telephone System will invest in
its telephone plant for
expansion and
development will exceed $129 mil¬
lion, which will be by far the
largest
in
Donald
C. Power
36
increasing
personnel
ization.
..
to
our
organ¬
•.
II.
of
;
being
a
shows every indication
record year—not
only for International Shoe
but for the entire shoe
Company,
In reviewing the
industry
past
12 months,
as
well.
1955 showed
ceptional increase in
our
turning in
an
ex¬
production esti¬
mated
an annual
at 575
industry bv
our
folks who
ices
are
orders
for
Spring
estimated, for example,
the public.
overall business
cast with
a
In
fact, their share of the
activity of the present year can be fore¬
fair degree of accuracy
.
.
so
.
much
income, so many mouths to feed,
to clothe, etc., etc.
When,
not
the
the
in the business of selling goods and serv¬
directly to
however,
of
jobs, so
many backs
many
so
it comes to ourselves and to those
heavy machinery—the kind of prod¬
displayed
on
store shelves
sold
or
cannot be predicted
over
store
with anything
We know, of course, that to
good wages, and to raise them periodi¬
cally, all businesses must find other ways to keep the
cost of their products low enough to attract
buyers.
same
accuracy.
continue to pay
The great
so
over
of
period
a
■
the outlook
for
the
/ '
■ '■.
/"
.V,.
metalworking industry as a
gratifying.
■
.
the
as
Machine Tool Show.
Now that the orders for these
business.
HON.
U.
S.
The state of the
hower's
so
ways—at the
many
re¬
that the obvious answer, as we
it, is for all industry to
see
DANIEL
A.
message
Union,
to
as
reflected in President Eisen¬
the Congress
On
the
new
investment have moved forward
together.
this
I predict
progress
in
a
continuation of
the
months
ahead.
Some alarmists point to possible soft
spots in the economy, such as antici¬
pated decline in automobile sales. I
believe
that, if such declines do
they will be largely made up
by increased levels of economic ac¬
tivity in other areas.
occur,
One
of
the
indefinable, yet irre¬
placeable, ingredients in
prosperity is confidence.
a
commodity
for
by
use
the
law.
American
some
industry carries a very definite responsibTity to itself and to the people it serves.
Any business
that
remains
static
will
be
soon
Continued
Federal
true that while the American
out
of
consumer
to
business.
It is
has more money
spend, he is also exercising more caution in the
he spends it. Current studies
indicate he is buvin?
ity—and it
quality he
dual¬
is equally true that he is
looking for the best
get for his money.
buy goods with the least
the
consumer
must be
able
amount of effort
on his
part.
large increase in the number of mid¬
families, and the movement of these families
to the suburbs, has produced a
new way of life
which
In this
respect, the
dle income
.
in
turn
the
has
huge
changed the retail picture.
shopping centers
in
the
.
better
customer.
We
not exist
-
has
a
can
ever
bought
will
buy
before.
pairs of shoes in the
been for the strike
history,
been
this
closer
1956
more
all
We
company's
to
55
shoes in
produced
year
1956
about
just closed.
annual
million
was
pairs
surpass
our
any
52V2
for
BONDS
STOCK
OF
LOANS
AND
AND
180,485,105.88
BONDS
13,157,149.32
SECURITIES
BANKING
FURNITURE
OTHER
FEDERAL
3,095,125.94
RESERVE
BANK
DISCOUNTS
360,000.00
1
HOUSES
AND
83,450,454.58
1,495,086.71
FIXTURES
865,562.31
ASSETS
1,256,691.61
$347,251,848.09
LIABILITIES
DEPOSITS
..
LIABILITIES
CAPITAL
(COMMON STOCK)...
6,000,000.00
6,000,000.00
UNDIVIDED
PROFITS
5,294,155.03
Ameri¬
he
.$324,281,581.04
5,676,112.02
our
has
$347,251,848.09
million
would
our
have
1955.
previous year.
MUNICIPAL
OTHER
$ 63,086,671.74
And, had it not
the biggest year in
plans accordingly.
AND
that did
than
production
this figure and also
pairs than in
STATE
BANKS
OBLIGATIONS
SURPLUS
shipments of about $262,000,000.
will
of
against International, the first in
Nineteen fifty-five
with
some
Company, believe the
more
FROM
added
few short years ago.
consumer
DUE
GOVERNMENT
OTHER
suburban retail
stores,
We at International Shoe
S.
Development of
suburbs
confidently expect
1956 gain to come from
RESOURCES
.
greatly to the consumer's convenience—which
makes him
a
Corporation
way
can
Also, for best sales results
to
Deposit
Statement of Condition December 31, 1955
U.
our
history
We believe
see
us
We
making
ofthe
COMMONWEALTH
SERVING GREATER DETROIT
that
producing
are
BANK
THROUGH
24
the previous tax
law,
with¬
so
Member
AND
Reed
completely revised 1954 tax
of the discriminations and har-
assments which had characterized
DETROIT, MICHIGAN
CASH
A.
in the new,
By removing
spending is playing in
Consumer confidence is
significant. It means
primarily
that the rank and file of
American consumers feel that
they are well off personally and are confident
about the
future. Widespread confidence
is the greatest
guarantee
of gccd times.
As I see it, consumer
confidence is the
most significant
single factor in our economy.
Daniel
discover or explain. In large part,
believe, it results from the adoption of policies such as
con¬
sumer, is the vital part consumer
the current upturn.
Hon.
present
The source of this confidence
our
is not always easy to
System
Rand
never
is
Insurance
H.
5, has
other
companies such
Henry
Jan.
hand, our domestic
displaying a vitality as
well as a basic stability unparalleled
in our
country's history.
Personal
income, consumption, production, and
..
economy
Member
International, which manufactures
on
been brighter or more full of hope for the future. It is
true that the uncertainties and tensions in international
relations
call
for
sober
reflection.
Federal Reserve
as
REED
Congressman from New York
those reflected
of
new
beginning to come in, we are looking for¬
ward to getting back what was for us a
very sizable
expenditure
in the
increasing competition for new
forcibly—and in
replace old machine tools with new—and to do
out further delay.
Spring.
"
are
are
strong endorsement
?';■/
-
Thousands upon thousands of manhours worked at
Monarch in 1955 went, of course, into the preparation of
the new machines which the company
displayed at the
of last year with
lines and prices for
Most imoortant to
v
equipment will
remains to
years
and for Monarch in particular, is definitely en¬
couraging goes without saying. That the hoped-for vol¬
ume of business will be
largely for machines to be used
for the production of peacetime products is
especially
excess of 15%. This is
tan¬
gible proof of the optimistic view of
the future held
by our customers as
well
of
'
gains in
our
new
,
That
I
industry
purchases
many
spread
seen.
contribution which new machine tools can
manufacturing costs was dem¬
in the machine tool
year.
The general consensus is
that 1956 will see an
all-time record
of
probably 600 million pairs pro¬
duced in this
country.
own
in
people is expected to keep many of our
cent Machine Tool Show
ous
be
-
machines
industries fully occupied for a long time to come.
This presents an especially glowing prospect for
onstrated
million pairs compared
running well ahead
we
make to this reduction of
with 520 million
pairs for the previ¬
Our
as
here
In other words, just to take care of the peacetime de¬
mands of
like
1956
living
them
this, according to the statisticians,
Over the next 10 years, say these
experts, our increase in population will not only keep a
lot of firms busy supplying the everyday requirements
of their fellow citizens, but barring another war, will
put many other concerns to work creating new products
for an ever higher standard of living.
counters—the future
President, International Shoe
Company
The outlook for shoes
in
have! to
be
how
and
now
is only the beginning.
ucts
RAND
of the
And
servants.
other builders
HENRY
permit of such action
Under the circumstances just how much
present desire for modernization can be realized
immediately.
the equivalent in services
per year or
of
our
corporate history. Greater use
of all telephone facilities
will make it
necessary for us to continue to add
conven¬
that the average home now uses 2,550
kilowatt-hours of electrical energy
J. A. Raterman
believe, will
we
know
of the
more
and
the U. S. A.
Service Corporation
of progress and growth. The de¬
new
new
TV sets and
new
new
have
POWER
mand for
steadily
162,000,homes,
washing ma¬
some
000 fellow Americans for
trying to do just that.
And many more have indicated to us that
they would
like to follow suit. But new machines cost
money. And
the machines they would
replace have not in many cases
been sufficiently written off to
/v.dh whole,
It is also the result of the
eight cents
General Telephone System and
the
entire independent
telephone indus¬
try expect that 1956 will be another
in
and excit¬
.
It has been
DONALD
September
new
mounting demands of
a ton mile
less than the DC-4. We
estimate the 1049H
will be 10%
cheaper to fly than the DC-6A.
The twin factors of lower
flying costs made possible
by larger, faster equipment and the
payload increase
that can be achieved with such
aircraft point the
way to
steady industry growth and better
earnings.
President, General Telephone
last
more
ing developments in metalworking
equipment were revealed than in
direc¬
many
A great many manufacturers are
RATERMAN
Chicago where
of
.
in
A.
Interest in new machine tools and what
they can con¬
tribute to the increased output of
goods or to the reduc¬
tion in cost of the goods produced has never
been higher
than right now. This is
partly the result of the Machine
prospects
future
basis
-
JEROME
President, Monarch Machine Tool Company
111
OFFICES, OPEN UNTIL 5 P.M. MONDAY THROUGH FRIDAY
on
page
112
112
The Commercial and Financial Chronicle
(372)
Continued from page 111
have done much to encourage the growth of private
Investment in new business, new products, new processes,
and new plant and equipment. All of these spell more
we
and better jobs for our people and a higher standard of
living for all. We must now beware of ill-conceived,
politically motivated attacks in this area which can so
easily and so quickly undermine and even destroy this
essential element of confidence.
The prospects for a
Company, Portland General Electric Company, and the
Washington Water Power Company. Together they now
have installed generating capacity of 1,400,000 kilowatts
with 900,000 kilowatts under construction or immedi¬
ately contemplated. Pacific Northwest Power Company
has preliminary
permits on three new developments.
Already the company has spent some $1,750,000 on dia¬
mond drilling and exploratory work on two power sites
on the Snake River below Hells Canyon.
These two de¬
velopments, called Mountain Sheep and Pleasant Valley,
will cost, with transmission facilities when completed,
$210,000,000 and will produce 1,000,000 kilowatts of new
balanced budget both in fiscal 1956
and fiscal 1957 are heartening and represent a magnifi¬
cent accomplishment.
This being an election year, the
possibility of tax cuts is uppermost in the minds of many.
However, President Eisenhower struck a responsive chord
It is the
with
me
insist
zens
in
as
feel certain, with responsible citi¬
walk of life when he declared that this
every
be
would
well as, I
time for
no
a
deficit-financed tax cut and that
debt
reduction, even though modest, should receive
priority. Any other course would be untenable in
the face of present prosperity. Whether or not a tax cut
does in fact prove feasible later this year will depend
to a great extent upon the size of any budgetary surplus
available in fiscal 1957. I do not bar the possibility that
it may be possible to make both a payment on the debt
and at the same time relieve the American taxpayer of
a
first
at least
portion of his present heavy burden. Of course,
policy, we must not fail to appraise
carefully the possible inflationary impact of a tax reduc¬
tion. We have stabilized the cost of living and created
a sound dollar.
We must not jeopardize these tremendous
accomplishments. Inflation, by its erosion of earnings,
savings, pensions, is the most deadly form of taxation of
all. For this reason, a combined tax reduction and debt
reduction would appear attractive if the budgetary situ¬
ation would permit.
The deflationary impact of debt
reduction could offset the inflationary impact of tax
reduction. Here again, however, we must adopt a "wait
see"
attitude
withhold
and
our
decision
until
government's fiscal picture,
as well as the general
outlook, is clearer later in the year.
nomic
KINSEY
small, but vocal group called "blockaders" who
the Federal government build everything in
development, and that private capital be elimi¬
power
from
Pacific
the
this
Unless
Northwest.
group
the
eco¬
M.
The
high records for generation and sale of
new
kilowatt-hours,
or
the
over
vious year, dovetail nicely
people.
N. J.
Trenton,
of
prudence.
will
continue
the
and will
years
activities
trend
assume
of
1956
in
previous
much
a
are
are
in
1956
will
be
The
Pacific
poses
a
curtain
business
upon
those
wise
for
query
however, will have
no
easy
column
in
farmers
Mary
con¬
have
almanac
and
for
snow
G.
Roebling
tell
the
who
Kinsey
Robinson
Christmas,
when
or
indicate that the total requirement six
years hence will
be 11,750,000 kilowatts.
By 1965 it is estimated that the
will be short some
2,000,000 kilowatts unless drastic
steps are taken to produce new power. This means that
500,000 kilowatts of firm capacity and transmission facili¬
area
ties must
It
be added each
year, with capital outlay be¬
$250,000,000 and $300,000,000 per year.
be
may
asked
amounts of power
lies
that
in
sound
the
what
Pacific
use
is
made
of
such
sizable
The
answer
in the Pacific Northwest.
national
leadership,
Northwest
is
renewed
confidence
dynamic, and
young,
is
going places. Washington and Oregon alone can furnish
enough lumber to build one million homes
annually—
the
entire
nation's
needs.
service
New
industries are seeking
Washington Water Power Company
•establishment daily.
area, where
the residential consumer shows ex¬
for electrical
living, boasts 86%
electric ranges and electric water
heaters.It is difficult for some of our
eastern friends to realize
that where the national
average use of
ceptional
of
residential field stands at
2,775
customers
electricity in the
kilowatt-hours, WWPCo
now
use
an
average of 7,350 kilowatt-hours
Unrealistic though it may
sound, the company
another 500 kilowatt-hours to be
annually.
expects
added to
the
present high level in 1956.
To meet this growing
power
curtailments
Pacific Northwest
eration
to
45
projects, such
on
new
as
in
are
demand, to avert what could be
1960-61, various agencies in the
either
power
building,
or
giving consid¬
developments. Some of these
Day 1,105,000 kilowatt plant
the John
the Columbia River which will
regarded
cost
$310,000,000.
favorable to partnership construction.
as
are
Other
developments will fall to individual companies. In
this
latter class is the WWPCo.
400,000 kilowatt Noxon Rapids
power development now under construction on
the Clark
/Fork River.
The cost is
estimated at
$85,000,000, includ¬
ing transmission, and the plant should start to
produce
power in 1959.
Upon its completion, the WWPCo. will
for the first time in
many years be independent of
power
supplied by the Federal Government.
Another
source
of
development is the newly
organized Pacific Northwest Power
Company, composed
of the Montana Power
Company, Pacific Power & Light
power
"ifs"
that
for
always
"If"
part of the
reports of those
are
the
peace
are
restrained
are
the
the result of over-production
(with inventories gorged
a point where
purchases must be stopped until sales
volume catches up with full
or
to
warehouses); "if"
cates
on
of
the
credit
expansion
highway of
fail
runaway
to
and unsound promiscuous
"ifs."
the
see
purchasing
moderation might save the entire
wark of sound business
against a
than
more
growth which has
of
the
even
come
major programs which
before
we
started
in
coming to fruition this year to
to shippers through greater
efficiency
and improved service.
For example, our
operation
are
Texas
and
California at reduced
for
will continue
total
a
costing
of
to
together
record
take
delivery
freight
14,725
about
orders
cars
$158
for
orders last
186
million.
It's
us.
on
and
diesel
The
cars
also
noteworthy
during the last 10 years, we increased the carrying
capacity of our freight car fleet by 44%, and the number
of cars by 35.9%.
tidal
credit
wave
These
light
time; where
on
are
Also
of
bul¬
unsafe
only
a
part
in
project of
1956,
ern
will
we
Centralized
will expand
complete
Traffic
another
Control
$7
million
installation
that
the capacity of 114 miles of line in South¬
California.
These
only highlights of a great number of im¬
progress.
Others achieved last year in¬
clude new freight services to the Pacific
Northwest,
improved schedules throughout our system, and the
addition of more full-length dome-lounge and "ham¬
burger grill" cars to our passenger service.
are
in
provements
Our
trailer-on-flatcar
creased
and
we
("piggyback")
them
extended
into
operations
additional
in¬
areas
of
California,
Oregon, Arizona, Texas and Louisiana, and
also into the Middle West by linking SP's "piggyback"
with that of our affiliate, the St. Louis Southwestern
(Cotton Belt).
During 1955, we acquired or ordered
1,044 trailers as well as 780 tractors and trucks, and
to
expect
move
our
100,000th
"piggyback"
next
van
month.
For
advo¬
caution
consumer
buying.
more
;
ourselves, we expect traffic movements compa¬
good volume enjoyed by our lines in 1955,
rable to the
when
a
daily average of one and a half new industries,
requiring a spur track, located along them. Indus¬
try just naturally follows people, and industry is what
each
we're geared to serve.
of the
R.
As we see it today, business is in safe
hands. Bank¬
ing is in the hands of capable men and women who are
alert
to
the
safeguards necessary
to
a
seasonal
money
policy.
public bent
on
adventuring in buying and selling through
brokers what the "big board" and the smaller
exchanges
list.
Expressions of alarm are needed from time to
time and appropriate measures are available to "brake"
speculation
runaway
if
and
Building of all kinds
perous
One
year.
broken,
cannot
Production, prices,
as
at
on
has
present
the increase in
problems
records
the
to
status
are
until
more
be
less
than
is
and
is
The
nation
is
strong;
people are full of purpose
to keep it that way.
No hurricane of evil reports, no
tidal waves of pessimism, no avalanche of rumors and
old
witches'
ours.
their
The
tales
men
will
and
change
women
the
of the
prosperity
nation
will
that
go
is
about
orderly living, and the enjoyment of comfortable
existence
More
will
and
pervade
more
our
the
land.
people
are becoming capitalists,
houses, money in the bank, owners
industry and finance, of equity in life insur¬
ance policies, of Government
bonds, and pensions accru¬
ing to them both earned and contributed.
Surely we are
a favored
people, contemplating a future under a capi¬
owners
of lands and
of stock in
talistic economy.
...
400
million
estimated
tons
465
at
in
was
1954,
million
for
Production and demand should
tons.
adequate build¬
its
all
continue to expand annually and by
I960.; will approximate 600 million
This
available.
Savings credits will increase—the confidence of savers
"against a rainy day" will grow—as deposits increase
and the greater
interest items are extended in their
thrift passbooks.
will
the upswing and
on
Production of bituminous coal
pros¬
1955.
will arise
profits
and
Coal is
increasing demand.
a
Our people will live well in the new
year; our chil¬
dren will study under fine school systems—even
though
serious
productivity,
1956.
very bright future.
The coal industry has been
going through very trying times during the past five
years, but with the general upturn
in the economy of the country, as
well as the upturn in the economy
of Europe, coal now faces an ever-
breaking.
ings and personnel
SALVATI
a
needed.
the forecasts for
always expect
particularly when
of itself record
when
paces
E.
President, Island Creek Coal Company
be
The Stock Exchange
officials, while making a reason¬
able attempt to ward off
speculation, cannot police a
preference
saturation
the
successful; "if" the prices of
from rising, affecting ad¬
purchasing power of our people; "if" the
stoppages are not too intensive, either premeditated
versely
work
our
appetite for electrical living. At the beginning
of 1955, consumption of electric
energy in the Pacific
Northwest stood at 7,750,000 kilowatts.' Load
estimates
made by individual systems show
continuing growth, and
tween
in
work
Several
1955 and
carry
reader
to be clogged with ice floes.
were
year ago.
that
prophets of former days could
the
would
we
commodities
time of
it meeting what may be termed
equip¬
enhance benefits
represented
ditions in advance.
vocabulary of the pessimist.
ravenous
new
including $35
in 1956.
units,
whose careers have
fitted them to forecast business
a
of the
year
rising
might be
Northwest,
of
part of our obligation to take
a
We also
their communities.
financial
interjected
nation.
worth
acquired,
ated facility in Eugene, Ore.
Both yards, when com¬
pleted, will expedite handling of freight cars, thus im¬
proving car distribution and increasing car availability.
human¬
attempt to acquaint the
with
the
important
place
hold in
of
men
Banking
an
meet
the
be
in 1954 near Houston, Texas, will go into
operation next
month, and work will continue on another radar-oper¬
only people and that banks
friendly places in which to do
ers
to whether the electric
industry could
growing consumer demands,
have, been dispelled with adequate
plant facilities throughout most of
to
$775
with
year
transportation costs to both shippers and consumers.
Our $7 million ultra-modern classification
yard started
industrial construction planned, finally tell us—business
will be good in 1956. I would not
suggest for a moment
that they are wrong, but a word of caution
shortages which induced certain
pessimism in government circles as
million
almost
new
ucts into Arizona from
more
important place in the programs of
many banking institutions. Such pro¬
grams will stress the idea that bank¬
Now, sim¬
these interpreters of the financial thermometer
with the aid of a divining rod of statistics, and by
consulting the charts showing the economic factors of
production, consumption, earning power, spendable in¬
come, taxes, new housing units to be started and new
and
to
$34 million pipeline—begun last April and starting into
operation this month—can bring refined petroleum prod¬
can,
it is anticipated that
1956 will show similar im¬
War-time curtailments
II
These expenditures are
of
relations
Public
ilarly,
Now
the year
War
We enter the
our area.
Oonaid
J. Russell
They're part of our con¬
tinuing plan to match industry and
agriculture stride for stride. Certainly they show our
opinion of the general outlook for western business
Banking in the nation will be normal in 1956. I can
see no
signs of weakness in the commercial banking
system that would change this trend.
Bankers will police their credits within the bounds
the rivers
provement.
improve¬
to
President and Chairman, Trenton Trust Co.,
The goose-bone
bulging output from our mines, fac¬
tories, mills, and the tremendous
purchasing power of the American
$150
care
whether
with the
World
million.
ment
capital
just
a
pre¬
since
for
This brought our investments
inevitable.
increase of 68
an
kilowatt-hours
ments.
v1'"'
The
electric power over the nation in 1955 totaling 479 billion
we ended
record annual outlay of
a
million
This is
Company
The sale of electric energy suggests a most revealing
index regarding the growth and expansion of our econ¬
Planning ahead for this,
1955 with
than double
public
President, The Washington Water Power
will continue.
tion, wherein all agencies contribute something for the
common
good, it appears that construction delays are
business.
ROBINSON
spectacular growth,
eight-state "Golden Empire" we serve will con¬
tinue—from Portland, Ore. to New Orleans.
It consti-'
tutes the fastest growing territory in the nation and has
the
greatest
potential.
Our longrange estimates indicate the growth
the
accepts the "partnership idea" urged by the Administra¬
MARY G. ROEBLING
v
This railroad is confident that the
of
million for diesel units.
banks
billion
progress.
that
nated
ized
omy.
northwest
to
a
in developing our tax
and
obstacle
serious
RUSSELL\
J.
President, Southern Pacific Company
$117
electric energy.
There is one
D.
-
.Thursday, January 19, 1956
.
.
been
increased
brought
consumption
about
mainly
has
by
the
in energy demands of the
public utilities and by the increased
step-up
demand for steel
making and export.
these expanding de¬
mands for bituminous coal, however, the industry will
be required to open new mines to replace those being
exhausted and closed, and additional new mines to serve
R.
E. Salvati
To
satisfy
This must be accomplished in the
quality, service, and cost through improved
mechanization, automation, transportation, and use. To
the "career" companies, dedicated to coal, will fall this
responsibility. Only with these sources will the "know
how" and "capital" be found to support a sustained and
planned increased productive capacity of bituminous
the
added
demand.
interest of
coal.
The
day of the "opportunist" in coal is diminishing.
more, large consumers of coal are buying the
More and
bulk
of
their
requirements from
the
established
pro-
Volume 183
Number 5460...The Commercial and Financial Chronicle
ducer.
Only from such sources can they be assured of
quality, supply, and service. This makes for a more
stable price structure in the industry and favors the com¬
panies that realize profits are the means to growth.
Nineteen fifty-six
will show improved buying and sell¬
ing "partnerships" in recognition of these facts.
Further, 1956 will bring into being
increase in the
an
number of buyers who are contracting all—or a part of—
their expanding coal requirements on a long-term basis.
The
benefits
to
buyer and seller in these instances are
and are added promise of sustained profitable
numerous
production, with the lowest possible costs.
Despite the technological advances in the mining of
bituminous coal and the higher rate of productivity,
prices for 1956 will be on the increase.
Even with the
favorable
more
market conditions of
1955,
of the
with an
many
larger companies are still operating at a loss or
insufficient margin of profit.
Increased demand has just
recently benefited many of these operations and only
prices higher than at present
keep them
can
on
a
sound
business basis.
Further, while the industry's labor con¬
1957, it is faced with an agreed wage
increase as of April, 1956.
Current-day prices do not
permit the absorption of this increase and it will be re¬
flected in higher market prices during 1956.
tract
a
long-range
point of view, and will react to the over-all benefit of
nation, the
and the producer.
consumer,
A.
S.
conceded
that home
starts
period of high
building fields.
a
be somewhat less
may
in 1955.
On
deficiency
in
home
particular field
of
con¬
home
doors
windows,
.
fields, the
products such as
will
types
expand
as
A.
S.
Aluminum windows have taken their
place in the home building field as a commodity rather
than their previous status of a specialty item.
During
this coming year, we anticipate our largest expansion
in this young industry's history.
past decade.
We
here
at
General
Bronze
Corporation
during
the
have expanded our production facilities for
the purpose of manufacturing low cost aluminum win¬
dows by 200% in order to meet the demands of our
customers for the new year and the years to follow.
past
receivers, including
three
consoles.
increase and
As
Color TV will continue to
make
impact
an
l'
field
is
'
(2) Business Machines—These machines, including elec¬
system
A
hope by others in the broadcasting industry. This
we
will
accelerate
the
transition
from
black-and-white
to
color and it is my firm belief that the sale of color sets
will eventually exceed the sale of black-and-white sets.
NBC
TV
RCA,
has
Company,
subsidiary of
a
telecast schedule of Color Spectaculars
largest in the industry. In expanding
and developing its service to the American home, NBC
is concentrating on the quality of its programs.
Fully
now
a
that is by far the
(4) Radar—A system, designed by RCA for all-weather
is being installed by five commercial air lines
purposes,
in
Affairs.
for
its
increase
is
Also
The "Wide Wide World" is
educational
worthy
informative
of
as
note
programs
well
is
the
on
its
as
a
program
increased
value.
attention
TV
for
to
uses
electronic
air
TV
electronic
and
patible color television is being made at the Walter Reed
Army Medical Center, Washington, D. C.
Research and
work
now
hold
controls
Progress is born of change
that
virtually all types of vehicles.
United
States,
its
customer-to-customer
exchange),
countries,
Puerto
including
service,
was
known
of these
for
new
extended
new
circuits
and
to
now
the
total sales will be in
were
products and services
were
created through
in
from
the
corporation's
recent
$100,000,000
issue, along with other funds, will be
also! rapidly expanding
research, manufacturing and service facilities in the elec¬
tronic and related fields. During the last five years, RCA
has
reaches 21
spent approximately $160,000,000
for additions
improvements to its properties and facilities.
cessful completion of the many
Philippines,
Continued
Rico, Hungary, French Morocco and Tunis.
on
page
a
have utilized this type of construction.
particular performance in this area has been
country which
Our
own
outstanding, and
of
able
feel has justified the making avail¬
plant area for that division of our
we
additional
*
3*
business.
The Aero and Electronics divisions
these
new
progressing in
and dynamic fields and there is every evi¬
dence that volume
increases
are
be looked for in radar,
can
television, radio, guided missile and aviation programs.
Our
past experience supplemented
by known procure¬
suggests that the biggest production period
items should occur in the 1956-57 and '58
ment factors
for
these
periods.
SARNOFF
DAVID
Chairman,
Radio Corporation of America
Total sales of products and
AMPHENOL 8 ELECTRONICS
services by the Radio Cor¬
poration of America, in 1955, will exceed $1,000,000,000
for the first time in its history, thus placing RCA among
the top 25
amphenol-the American Phenolic
the rate
million
a
of America's
We have
in
35
million
a
RCA
a
record that gives all of us
sense of pride in the past
and
a
billion
achievements
in
our
best year on
ward
to
1956
as
record.
a
year
1955
Dividends to
Sarnoff
for the year
069,000
I look for¬
of continu¬
industry,
(preferred,
$3,153,000;
com¬
than its sales volume of $237,000,000 just
and compares with $941,000,000 in 1954.
years ago,
10
will continue in
as
in the past. Again
and small manufacturers will turn to
'building
to
AMERICAN
the future of Electronics'
PHENOLIC
CORPORATION
CHICAGO 50.
applications will
thousands of large
for vital electronic components.
$20,916,000).
greater
amphenol
stockholders, declared
1955, amounted to $24,-
expand both in facilities
'impossibles' will become practical.
this year, as in every year,
as
Employment totaled 78,000 persons,
including 8,000 overseas. Government business accounted
for about $220,000,000 of the 1955 total volume, and the
current backlog of government orders is about $275,000,000. RCA's billion-dollar business in 1955 is 320%
mon,
more
Like the
ing progress.
David
electronics.
startling prediction for 1956.
prosperity in 1956, in the future
electronics,
radio and television establish
dynamic industry:
and in products. New needs, new
arise;
confidence for the future.
Our
no
ILLINOIS
f
participated in the tremendous growth
Electronics will continue to
a
to
quarter of a century. During this period we assisted
in the birth and
a .year.
is
From
years
in
of $1
Corporation-has been
building electrical and electronic components for nearly
industrial companies in the Uni.ted States. It
is equivalent to more than $4 million
business for each working day of the
year. At the beginning of 1920, when
RCA commenced its operations, the
volume of business was running at
and
,
result of the suc¬
projects throughout the
as
used
furthering the expansion and development of RCA's
in the commercial building
construction
not
research, development and engineering.
Proceeds
(tele¬
TEX
illustrated by the fact
pioneering efforts that involved substantial expenditures
territories and
as
as
of RCA's
commercially developed, only 10 years ago. The majority
possessions with 65 countries. During the past year direct
printer
during 1955, 80%
products and services which did not exist, or
communications, RCA's world-wide net¬
the
Future
the bedrock of scientific research,
development and engineering.
We regard research as
the lifeblood
of modern
industry and the basis for
steady growth.
debenture
links
the
RCA has built upon
for the home.
radio
expanding in the fields of education and in¬
The, first closed-circuit installation of RCA com¬
dustry.
conditioner; and microwave two-way
for
control and
other
applications
displays may be required.
Closed-Circuit Television—Use of this form of TV
(5)
path toward higher program plateaus.
of
traffic
is rapidly
High Fidelity ("hi fi") field, both instruments
and records gained in popularity during the year.
To
meet
the
demand, RCA Victor introduced five new
Orthophonic High Fidelity "Victrola" phonographs which
provide highly realistic reproduction of speech and music
As for
air
in
use
where large and bright
government activities.
National
NBC's
the
the
able
esteemed
entertainment
the United
States and by four European air lines to
safety and comfort of passengers, and en¬
pilot to see storm formations up to 150 miles
ahead. A high brightness radar display system project¬
ing images on a four-foot screen for viewing under
normal lighting conditions has been developed by RCA
of the great educational and cultural opportunities
television, NBC
Bizmaq
(3) Military Electronics—New developments in televi¬
sion, radar, radio communications and electronic controls
are greatly
increasing the effectiveness of virtually every
type of military operation.
y\
'
'
Programming
National Broadcasting
The
called
"Bizmac" for electronic data-processing.
computing system purchased by the U. S.
Army is being delivered to the Ordnance Tank-Auto¬
motive Command, Detroit, Mich., where it will
complete
in minutes inventory control procedures that now re¬
quire months.
In 1956, color programming will be substan¬
tially increased by the National Broadcasting Company
and
more
tronic computers and other devices, represent a vast field
for development and expansion.
RCA has developed a
tfae American home and the nation's
on
being
all-transistor
>
gain in momentum and will
economy.
year
Curtain wall
increases, production will
prices will decrease.
are
design and make electronic instruments lighter
compact. R.CA is now marketing pocket-size,
radios as well as a larger "personal size"
portable set designed for extremely long battery life.
and
table model, consolette and \
a
demand
advances
cation of
In the
buyer
the
color
new
follows:
as
tion-wise in 1955, and are being used in a number of
instances in place of electron tubes to facilitate simplifi¬
color
more
radio communication
Saphier
becomes more discrimi¬
nating. This trend has become more
obvious in the past year than at any other time during
the
are
are
(1) Transitors—They advanced technically and produc¬
enter¬
pictures
stimulating the
advantages of
people to acquire color sets. To meet the
demand, RCA has introduced a complete line of 21-inch
an
of
other
and
enclosures
exterior
other
increasingly apparent and
desire of
Industrial
building
aluminum
of
use
and
promise of great expansion. Marked progress is being
made in RCA's development of an electronic light ampli¬
fier; a magnetic tape recorder for television; a high¬
speed electronic printing process known as Electrofax;
centage of the total volume of con¬
the
made
color
more
Progress in Other Directions
stantly expanding and as a result
our anticipation is for a greater per¬
In
become
value
alumi¬
struction expenditures.
and
more
Broadcasting Company is now entering
1955 has been the greatest year in
its history. NBC's emphasis on quality, as well as circu¬
lation, stimulates the public's taste for the better pro¬
grams on the air and encourages others in the industry
the potential usages are con¬
num,
tainment
to follow
the
With
us.
Ty receivers being installed in homes daily, the
The
struction.
In
behind
are
its thirtieth year and
pal, state and Federal construction
projects will, in all probability, in¬
crease and consequently compensate
the
steps
113
Major Developments
Five important areas in which
emphasizing quality not only in
programs of popular entertainment, but in all programs—
Drama, Operas in English, Education, News and Public
Corporation
and, perhaps, as much as 10% less than
the oiher hand, commercial, munici¬
for
initial
aware
SAPHIER
President, General Bronze
is
a
in
The year 1956 should continue to be
volume in the commercial and home
It
Color Television
Last year saw color television
get "off the ground" as
new service and become
commercially established. The
until
runs
Each of these events is constructive from
the
(373)
amphenol
*
114
114
(274)
The Commercial and Financial
Chronicle
Continued,
jrorn
113
page
LEWIS A. SHEA
J.
President, The Connecticut National Bank,
Bridgeport, Conn.
ARTHUR
SCHMITT
President, American Phenolic Corporation
The
be
In evaluating the prospects
of the electronic industry
first look at some of the prin¬
cipal industries which are dependent upon electronic
products. The aircraft and missile arms of the military
six
which
in
inevitable
are
flawless
In
industrial
the
should
temper the lessening
-
higher profits in 1956.
not
good
as
of
A
1955.
as
problem
—and
P.
commercial
M.
>
acceptance of
devices
established a
For instance,
to materially
reduce the cost of extensive calculations and voluminous
through electronics.
retention
record
plications for computing equipment
the commercial
will stimulate
which
Other varied
are
ap¬
being discovered
demand for
elec¬
tronic
components and equipment.
In such complex
equipment, as we have experienced with military gear,
importance of reliability of each component has
greatly increased. Thus (juality standards must be ever
improved.
The advent of automation requires constant vigil by
electronic component manufacturers to insure that they
keep pace with the changes in design prompted by auto¬
mation techniques.
Although automation will require
that many components be redesigned, the occasion for
the
,,
the
elimination
foreseeable.
basic
of
As
electronic
illustration,
an
.
prompted the design of many
and fastening devices.
new
.
components
is
not
printed circuitry has
and varied connecting
.
.
The
manufacturer is at the heart of the
The increasing demands made upon
component
President, The Delaware, Lackawanna and
for
and scientific
electronic industry.
the industry by all segments of our economy for compo¬
nents of greater reliability, more perfect performance
and unfailing accuracy demonstrate the vital role to be
played by electronics in the future.
So long as our in¬
dustry is able to meet these challenges and accept new
ones, there is no limit on tomorrow.
YVestern Railroad
I
has not shared in the so-called boom
of the past year to
the same extent as
many other lines of business. In 1955
the railroads had a return of
only
on
their
obviously too
with 6'%
lic
property
low
on
W. W.
SEBALD
In the year to come, general business throughout the
S. should continue to be very active and since that
will be true, the steel business will also be good.
U.
*
At Armco
to turn out
it
in
did
think
we
the
steel
more
in
steel
1956
industry is almost
sure
Great
regula¬
tion but contract carrier
trucking has essentially no rate
regulation and private trucking has no
regulation what¬
ble
1955.
goods made
of
steel, there
are
Agricultural
on the
highway.
exempt from rate regulation
to
apparent
and
reduce
the
remains in the
it is estimated that
capital expenditures will be about
70% higher than in 1955.
cost
way
R.
W. W. Sebald
may
The
Business
ingots
—
inventory accumulations.
The
year
will be
a
our economy
of
the
steel, make
come
to
a
new
steel's
it
and
the
on
is
low.
is
good
when
Happily,
they
people
this
It's
I
of
our
be
be
prosperous
short-lived.
never
people
as
that.
seen
increase.
sumer
The
loans
more
that any possible
production means
plants
more
mean
jobs,
in all
recessions
more
more
jobs
Edward
D.
Smith
encouraging factor with respect to
con¬
is
that collection records
during 1955 were
generally better than experienced for several years. This
leads to the conclusion
not
reached
that, as yet, this type of loan has
dangerous proportions.
HOWARD
L.
SHUTTLEWORTH II
President, Mohasco
Industries, Inc.*
The outlook for the carpet
industry during the coming
year is, in my opinion, good. Barring political or
psycho¬
logical developments that might reduce consumers' will¬
buy, industry sales could
of
the
of
surpass
the
high
mean more
some
increase
in
sales
the
continuing high levels
employment and consumers' dis¬
The still high level
home
ing
building, the
population,
and
increased interest
increas¬
ever
an
apparent
in home
improve¬
ment programs.
Supplementing these
basic elements are several other fac¬
tors
which should enable the indus¬
try to increase sales of
carpets
try
H. L. Shuttleworth II
in
1956.
new
First,
rugs and
the
indus¬
is
continuing, and intensifying
through color advertising, its pro¬
motion of the merits of
having carpet
Secondly, time-payment
were just getting started last
year,
industry-wide support and promo¬
in the home.
purchase plans, which
have received almost
tion, and promise to have more influence on sales than
they did last year. Thirdly, new merchandise introduced
at the January markets in both the
woven
and tufted
categories embody a number of new surface
techniques
which should attract consumer interest.
And finally,
there does not appear to be any abnormal
inventory ac¬
cumulation at retail or wholesale levels to
retard manu¬
facturers' sales.
This
favorable
situation for increased sales
by the
industry is offset somewhat by the in¬
creasing inroads being made into the American market
American carpet
Continued
will
production,
of
are
posable income.
the
ing their money freely—and spend¬
and
more
high level, but consumer credit
(monthly repayment loans) is also at
high level and there is some con¬
tinuing pressure for this credit to
con¬
ing makes business.
More
somewhat
a
filled
are
Furthermore, this heavy spending
by the people has bolstered the confidence of the manu¬
facturers who produce the goods the
people are buying.
They have already planned to spend over 33 billion dol¬
lars for plant expansions in 1956.
Prosperity is con¬
tagious.. This means that our most powerful businessmen
are betting their billions that America's
future is going
to
the
a
do
simple
as
have
in
commercial
area.
the
of life so
highly pitched or
widely spread as it is today.
Everybody is working and earning
big wages and the people are spend¬
Perry Shorts
business
why the legitimate borrowing needs
of this section of the
country cannot
be accommodated
by the banks in
business,
filled with fear,
are
a
credit
requirements, but
there does not seem to be
any reason
high, and "slumps" when
When
be
stringent
bad
of
so
R.
to
increased
means
pectation
or
confidence
confidence, they
confidence
better grades
industry.
per capita—an all-time high.
People's wants are
satisfied, and with the expanding uses of
steel
and with Americans
buying ever increasing quantities
of over-the-counter
goods made of
steel, we at Armco
see a clear
pattern of continued growth for our
industry
and our company.
never
is
with
new
everyone is a consumer of steel from
the cradle
grave.
This year our total
consumption of steel
required the production of over
1,400 pounds of steel
-
this
demand
After
walks
of
the
.^ingots
good.
very
Atlanta, Ga.
levels
of
1955
by 5 to 10 %.
The
economic factors that support an ex¬
people. Business "booms" when
depending
Today,
to
stability
must be assured.
business
depends
production record
and
is
to
seems
in 1956
1956
they don't.
new
further indication
growth
respect
South,
loan
which
sag,
SHORTS
for
of
assumption at this time.
ingness to
PERRY
whether
—
development of
ours
not
With
13
closely tied to the trend of gen¬
eral business and no
longer the "prince or
pauper"
industry it was in the past. The
expanding uses of steel,
along with
does
sound
the
far and to achieve this
fidence
Thus 1956 could bring another
for our industry.
place in
so
SMITH
haps the strongest loan demand in
many years.
From
standpoint of banks themselves, this indicates con¬
tinued prosperity
during 1956, as¬
suming that the general economy
(including 14 Pros¬
Depressions, large and small), I have
believe that both Prosperities and
Depressions
are
largely man-made,
and
that
and
However, if capital expenditure programs move
along
as planned, steel
production should be somewhere be¬
of
to
Adminis¬
the
50 years of active business life
over
perities
suming industries.
tons
and
public. Much
of technological improvement than
Outlook
—
million
service
D.
any
:
.
,
Banking in the South enters the year 1956 with
the
highest commercial loan volume in its
history and per¬
President, Second National Bank and Trust
Company of Saginaw, Mich.
be increased.
It appears that state and local
government spending for
schools, sewers, water systems and other
public con¬
struction will continue to rise.
Money rates will deter¬
mine how fast these
programs will proceed.
Present indications point to the
prospect of steel pro¬
duction at substantially full
capacity through the first
half of 1956. By the third
quarter it is possible that the
pressure for steel may ease somewhat
due in part to
the normal seasonal decline in
demand from some con¬
upon
its
for
program
Not only are commercial loans at
of
equality of competition
likely to be cutback, and
120
of
has been accomplished
of earnings and
Federal expenditures for national
security and other government proj¬
and
students
prosperity
EDWARD
to modernization and
has spent tremendous sums for
technological improve¬
ment and research in its effort to
improve the quality of
industry,
sound
sure
President, The First National Bank
Th|e railroad industry is alert
ture. It is expected that
capital ex¬
penditures this year will be at least
10% above those in 1955.
In our
115
all
.It is earnestly hoped that Congress will
recognize the
necessities of the situation in
considering legislation rec¬
ommended by the Cabinet Committee.
Spending for new plants and
equipment appears to be one of the
brightest spots in the business pic¬
tween
far looser pic¬
commodities are
a
vendors—have created serious
transport sickness.
crease.
ects are' not
airlines publish actual
rates but the unscheduled
airlines have
ture of rate supervision.
users
many indications that steel demand
in the'capital goods fields will in¬
own
Pipelines have limited supervision from the In¬
terstate Commerce
Commission, but inland water car¬
riers with their bulk
exemptions as contract carriers do
not have to file and
publicize their rates. Nor do private
is
Administration has
the
.,
abuses, and therefore great public
problems, have crept
into our transportation
picture. The railroad industry is
heavily regulated, based upon its long-since gone
monop¬
oly pattern. Common carrier trucking has rate
certificated
leanings, we
was never as prosperous
tration.
transportation that,
under todays
competitive conditions, these
varying de¬
grees of regulation and government
support, together
with misrepresentation as to
types of carriage, e. g., not
really private trucking—indulged in by some
While there may be a less urgent
demand for certain consumer dura¬
of
dollar"—a
report on
report has rec¬
The
country
restoring confidence in the
people; and that it has accomplished all
this, as Sterling Green suggests, through the
redemption
of "peace, a balanced
budget, reduced taxes and a
minds
changes in the national
transportation policy to fit the needs
of the day;
proposing less regulation
of all transportation
Perry M. Shoemaker
agencies and
requiring that competing forms of
transportation be governed by similar rules.
carriers.
our
it is today; that the
Eisenhower
been amazingly successful in
ommended
water
year
job, every school, every city and
every
as
railroads in the face of modern con¬
ditions as exemplified
by the Presi¬
dent's Cabinet Committee
It
than
upon
must all admit that
and
10% or more for
other industries.
My optimism for 1956 is based on
my
belief that there is a
growing
appreciation of the importance of the
soever.
President, Armco Steel Corporation
election
everybody. And our
Administration also knows that it is
Private
Enterprise and not Government, that
makes our country
prosperous; that our people want
jobs, not bureaucrats
and "give away"
programs; and that the best friend of
the people is not the
politician, but the business interests
of America which furnish
the jobs for our 65
million
workers—and whose
succqss or failure casts a profound
pub¬
utilities
This
this
a
home in the whole United States.
Regardless of our individual political
many
transportation.
do
can
lot.
Washington knows that when
prospers, everybody
prospers; and that any
law that hurts
business, hurts
every
contrasted
better for return
or
Of course, the farm
over-produc¬
football (with a barrel of
political
a
good
it
influence
investment,
when
can't
building
present
Company
believe the railroad
industry faces the new year with
optimism despite the fact that the
industry as a whole
4.3%
you
business
SHOEMAKER
new
markets, the very wide
automatic
computing
Arthur J. Schmitt
commercial accounting
/
calculation has already
wide market for electronic components.
banks and insurance companies are able
is
votes at
-
loans made with great discretion.
fair year but
spending for
and
stake) and the politicians will never allow it to
be corrected
by the old reliable economic
"supply and
demand" formula which
quickly solves the over-produc¬
tion problems in all
other lines of business.
And so,
there will be some
ripples here and there, but on the
whole, and barring serious labor
strikes, another good
business year is
clearly indicated. Even the poker-faced
bankers are
beginning to smile.
And finally, it's a sure
bet that the government will
go "all out" tod keep business
Inventories should be watched and
Lewis A. Shea
—
constantly
tion
first
The
demand.
operation
and
the
be easily said, will
last
quarter,
can
prosperous.
son
the
of
electronic devices will of necessity
replace manual means. At the same
time greater emphasis will be placed
al/3 on weight and space saving.
the
future,
think
I
more
per year.
however,
will
not
maintain
the
earlier trend but the Christmas Sea¬
and the even higher
tudes
months, it
be
and
still
Expansion feeds on itself
expansion as long as we are
Nationwide, business leaders in such important fields
steel, chemical, housing,
petroleum, transportation,
merchandising, etc., are predicting both higher sales and
impression of the outlook
year
means
goods.
as
be
election
altitudes now realized
speeds and alti¬
and
speeds
can
a
lessening off but still a
prosperity. However, it is an
high
in their own race for
higher speeds, greater altitudes and
increased safety.
Most of these ob¬
jectives are best attained by the use
of electronic devices.
At the high
business
by many contributing
If it were not a Presidential
my
would
income
Thursday, January 19, 1956
.
plants and producing new customers at
the rate of
11,000 new babies per day, or 4 million
affected
year,
engaged
are
stop
more
.
new
1956 outlook for
factors.
for 1956, it is necessary to
income, and
more
.
*Outgrowth
ander
of
Smith, Inc.
merger
of
Mohawk
Carpet
Mills,
on
page
Inc.
and
116
Alex¬
Volume 1S3
Number 5460... The Commercial and Financial Chronicle
(375)
the amount and size of their
mitments. It is reported that
Our
Reporter
Governments
on
com¬
some
of the institutions which have
not,
been too much concerned with the
distant Treasury issues are
moving out of the shorter
obligations into the discount 2 xk %
W. W. Hibberd Officer
Of Marine Trust
more
now
By JOHN T. CHIPPENDALE, JR.
The
to
Government market
be
in
of
one
^periods,
which
seems
for
Up to now, there has been
a some¬
that it will
means
credit.
in-between
those
and
what
take time before the indefiniteness
.
demand
increased
seeking
term
though
current
lean
towards
to
appear
'
the
viewpoint
been
seen
that
the
peak
rates, the action of the mone¬
tary authorities so far indicates a
continuation of the policies which
have been in force.
The Central
Banks
still
are
offsetting the return flow of currency from circulation and the sharp decline in
loans.
issues,
The
is
trend
being
market.
money
.
J}f
worx
in
along
in
with
tax
responsible for
with new
issues,
selected
switches,
the
being
increased
ac¬
New York City banks, it is
reported, have been buyers of
certain of the
rities
in
competition
of the smaller banks.
some
pension funds
ket
distant matu-
more
mild
for
bonds.
the
with
Public
still in the
are
longest
mar-
Government
?
'
Peak in Rate Uptrend Reached?
It
not
few
be
to
seems
a
the
opinion
of
market special¬
ists that the peak of the uptrend
money
in money rates
if not already
has been reached,
past.
This
could
conjunction
close
very
the
future
picture
be
of
the
effected
no
small way by what takes
place in the aforementioned eco¬
It
appears
deal
of
the
thought
that
in
the
though
as
current
the
trend
money
of the
worst
market
ters that for
will be in
under
not,
there
such
conditions.
place
far
as
as
-
concerned.
the
are
It is evident that any
of
the
demand
for
lessening
money, and credit
will have
a
fav¬
be
indicate that
abrupt changes in
the action of the powers that be.
It is evident that the trend of eco¬
nomic conditions is
an
important
future
going to have
influence
course
of
the
upon
money
the
mar¬
ket, because the policies of the
monetary authorities will still be
geared
what
to
develops
in
the
business picture.
If
the
money
top has been reached in
rates,
as
some
believe,
then it must be assumed that the
peak of
the
boom
has
also
been
if not already past. If the
business boom has run its course,
and a leveling off is in the mak¬
ing, then the trend of interest
seen,
rates
ness
ease.
term
will
if
be
not
This
a
towards
certain
means
money
market
less
tight¬
amount
that
the
will
orable
effect
the
upon
of
shortbe
the
first to reflect any change in the
P.
Hib¬
berd,
who
joined the
Living¬
Penobscot
sharply in the near-term
rities
also,
sharing
to
not
as
the
rapidly.
in
the
trend,
extent
same
and
William W. Hibberd
Mich.
added
to
the
staff
Co., Penobscot
of
New
York office
on
of general market
municipal
department.
ations of the
oper¬
decided
these
to
the sidelines have
make
commitments in
securities.
Treasury
The
obligation,
GRAND
3%
of
1995, has been and still is the
leading issue in the mote distant
Government market.
some
RAPIDS,
Mich.—Wil¬
liam Jastrow, Jr. is now with Con¬
tinental Securities Co., Inc., Peo¬
ple's National Bank Building.
Even
market
money
though
specialists
believe this security is outdistanc¬
ing certain of the other bonds, it
continues to have
a
good demand
in spite of the profit-taking which
has appeared from time to time.
There also
better
seems
to be
interest
;
(Special to The Financial Chronicle)
.
ST.
-
:
•
LOUIS, Mo.—Keith Forister
is
now
affiliated
with
Metropolitan St. Louis Company,
315 North Seventh Street, mem¬
bers
of
the
Midwest
Stock
Ex¬
Dammers
has
George
—
D.
joined the staff of
the
Walter J.
Murphy
that
in
sales
of
shares
of
the
plans
may pur¬
company's
Draper, Sears Adds
Day
BOSTON,
Robertson
BOSTON, MASS. —Vernon S.
MacDonald has become associated
with
Chas.
A.
Washington
Day
&
Co.,
Court
at
Inc.,
Streets,
staff
of
Mass.
—
has been
George
added
to
Draper, Sears & Co., 50
Congress Street, members of the
New York
and Boston
Stock
Grillo has
Mass.
BOSTON,
Joseph
—
J.
joined the staff of Dean
Witter &
Planning
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
BOSTON,
Co., 19 Congress Street.
COUNTY
DENVER, Colo.—Paul A. King
become
affiliated
lumbia Securities Co.,
table
with
Scott is
Mass.
—
George
ning Corporation of New England,
Inc., 68 Devonshire Street.
Co¬
Managem't
Condition
Mat-
of close of business
as
sumoto
of
has
been
Hamilton
for
added
to
the
December
31, 1955
Management
Corporation, 445 Grant Street.
Resources
-
$111,352,997.40
-
-
u
Joins Honnold Co.
(Special to Tiie Financial Chronicle)
Colo.
—
Charles
U.
E.
Lewis has become connected with
$16,901,426.33
S.
State
Government
and
Other
&
Co., Inc., 524 Seven¬
ond
and
Banking
1,474,330.41
*
25,805,203.91
loans
11,215,411.43
Discounts
ond
Accrued
10,812,710.96
.
23,009,941.71
Houses
Furniture
Other
Obligations
Securities
Guaranteed
or
Mortgage
Loons
19,608,455.95
loans i—
Insured
First
Obligations
Municipal
Bonds
Mortgage
teenth Street.
up
COMPANY
Statement of
DENVER, Colo.—Susumu
staff
BANK AND TRUST
Inc., Equi¬
(Special to The Financial Chronicle)
.......
Fixtures
Income
C
KENNETH FULLER
COWLES ANDRUS
Executive
..............
l
President
1,567,873.61
366,237.69
Receivable
Assets
391,606.56
199,798.84
Vice President
NORMAN BRASSLER
Executive Vice President
TOTAL
$111,352,997.40
Amounts
shown
ore
Valuation
net, after
C. WELLINGTON DEY
deducting
Executive Vice President
Reserves
IIAIIIITIIS
.:
Deposits
•
$100,804,140.51
Reserve for Toxes,
(IF
Accrued
V.
Interest,
Discount
Other
WIRES
Collected,
Common
•
CABLES
CONDUITS
Eorned
Not
499,660.49
CABLE
CORPORATION
ROME, N. Y. and TORRANCE, CALIF.
6 Convenient Offices
\
79,860.40
PATERSON,
J.
N.
4,500,000.00
...
Undivided
%
877,920.00
$2,250,000.00
Profits
PASSAIC,
1,918,207.05
N.
J.
»
____________
,
TOTAl
Capitol
LITTLE
Funds
8,668,207.05
!
FALLS,
$111,352,997.40
In addition to the above, assets held in the
Trust Department total
ROME
.......
Payable
Stock
Totol
°
423,208.95
etc
liabilities
Dividends
Surplus
Expenses,
$24,203,953.69
County Rank
AND
TRUST
Member Federal
J.
with Investors Plan¬
now
Paterson, Passaic, and Little Falls, New Jersey
Building.
Joins Hamilton
Ex¬
changes.
With Investors
(Special to The Financial Chronicle),
has
E.
the
members of the Boston Stock Ex¬
;
(Special to The Financial Chronicle)
AURORA, IColo.
is
consecu¬
vear
organization
Joins Witter Staff
some¬
step
This
tive
funds at regular intervals.
(Special to The Financial Chronicle)
With Renyx, Field
buyers
to
ment Plan.
third
change.
change.
Honnold
inclined
com¬
(Special to The Financial Chronicle)
Metropolitan St. Louis
the 2V2% Government bonds, with
now
the
Breed, Jr., is with Burgess &
Leith, Hospital Trust Building.
Joins Chas. A.
With
DENVER,
a
around
of
PROVIDENCE, R. I. —William
Cash
Good Buying in Discount 2^4s
what
fund,
received
the top award
for 1955 sales
M.
longest
the
million
mutual
Columbia Sees. Adds
enlarged demand for the
longer-term Government obliga¬
tions, because soma of the buyers
on
$100
chase
(Special to The Financial Chronicle)
an
were
Group Se¬
curities, Inc.,
through which investors
With Burgess & Leith
Heavy Demand for 3s of 1995
which
of
Monday, Jan. 9, will be in charge Mr. Murphy has led the national
(Special to Tiie Financial Chronicle)
According to reports, there has
been
Group,
Inc., sponsors
in
bank
their
M.
Arthur
—
Renyx, Field & Co., Inc.
-
Distribu¬
tors
odic Invest¬
De¬
partment
With Continental Sees.
sec¬
distant matu?
more
ropolitan Area
for
pany's Peri¬
the
money
This
however,
will
Co.,
of B. C. Morton &
Stocker
takes
not
ther
R.
Building.
what
future course of interest rates
but
inclined
markets
S.
J.
Murphy,
Regional
Manager for the New York Met¬
Municipal Se¬
has been
^
to
does
••
Gold
plateau. The
extent of the leveling off process
which is being looked for in the
economic picture will determine
a
fur¬
be
&
the
Award
has
Mr.
while interest rates
a
sort of
a
ities
not
with
DETROIT,
is
tightening
process is over, and this is being
interpreted to mean in some quar¬
tor, with the
money
Mich.—Donald
is
Crouse
by
bank.
(Special to The Financial Chronicle)
of
most
the
made
Group
'
to Murphy
Walter
curities
great
a
be largely aca¬
demic, since the monetary author¬
should
of
New
York, accord¬
ing to an an¬
B. C. Morton Adds
market. This influence will be felt
tighten
Trust
nomic forces.
term rates would
•
DETROIT,
scrutiny,
trend
will
The
Company
Livingstone, Crouse
Marentette
struction, automobile production
and sales, and inventories are also
given
of
Western
Building.
because
been
Marine
(Special to The Financial Chronicle)
as
prime bank rate and other short-
.
dent
areas.
With
of the
that the question of further
increases in the discount rate, the
mean
of
has
Assistant1 Vice-Presi¬
advices, a
the
buying
banks, mainly in the mid¬
west
loans
in
market,
town
factor,
the
trend
of- consumer
loans, home and commercial con¬
business
commitments
part
Hibberd
nouncement
course
In
substantial
to
W.
an
which is being done in these bonds
stone,
being
tivity.
.
n^ea:
closely
very
According
with this important money market
Government
.
watched
bonds.
William
elected
coming from the smaller out-of-
part
commercial
clue to the future
a
Volume, according to reports,
has picked up somewhat in the
.
>
of
funds
the
with a fair
being put to
tax exempt obligations.
has
in the uptrend in inter-
vest
;
in
this money
Even
opinions
v
of
amount
outlet
an
which surrounds it will have been
resolved.
-?
money
Distributors
115
COMPANY
Deposit Insurance Corporation
N.
J.
The Commercial and Financial Chronicle
(376)
116
there
114
Continued, from page
All American carpet
carpet.
by foreign machine-made
producers will be adversely affected by this loss of sales,
elthough the major effect will be felt by manufacturers
with heavy wilton volume.
profit outlook assuming that 1956 sales will at
equal 1955, appears to be about the same as 1955.
Profit margins remain modest. Although wool costs may
it
seems
end in sight to this steady
no
improvement
the Seaboard looks forward, along with the
and
region
to a year of good business prospects in 1956
opportunity for even more extensive economic
expansion.
serves,
and
an
lewis
smith
m.
The
be
edging
the continuing developments in man-made
increased acceptance by consumers, to¬
up,
-libers and their
carpet nylon, should
gether with the drop in the price of
tend to stabilize raw material costs.
The year 1955 witnessed the greatest
industrial growth
in the history of Alabama. Capital investment announce¬
ments for new plants and for the expansion of existing
plants, was approximately $400,000,000.
*
'
A
nationally-known
the
of
few
manufacturers
announcing new
plants for Alabama in 1955 were:
Marathon Corporation; National
Gypsum Company; Container Cor¬
poration of America; Consolidated
Chemical Industries, Inc.; Interna¬
tional Paper Company; International
Color Printing Company; F. C. Huyck
& Sons; Allis-Chalmers Manufactur¬
ing Company; Gulf States Paper
Corporation; and Coosa River News¬
SMITH
C. It.
American Airlines, Inc.
President,
1956.
For that reason, gross income for the airlines should
continue to grow. Profit margins will be narrower. The
airlines with costs below the industry average, with
be good in
conditions should
business
General
factors,
load
reasonable
will be the
The airlines now on
dividend basis should be
continue payments at a rate
profitable.
more
regular
a
able
to
approximating those of recent years,
and new equipment purchases should
not affect that ability in most cases.
There has been a great rash of
new
route
authorizations
by
the
is
The
1960.
companies.
factors
suitable load
if
airplane,
be maintained.
the larger machines can
during the following years. Within ten years it is prob¬
able that most of the conventional aircraft of today will
have been dis¬
have been retired to the shorter runs, or
air¬
posed of. The long-term trend is definitely toward
craft powered with turbine engines.
greater utility of the new service,
greater time-
saving at approximately the same total cost, will bring a
new and renewed era of growth for the airlines.
smith
w.
john
President, Seaboard Air Line Railroad Company
The
prospects for continuing good business in 1956
are perhaps even
brighter than they were for 1955 at
the commencement of that year. Last year was a good
business year.
There are good reasons at the moment
to
believe that this year will be
equally good, or even better.
A steady increase of population in
the six states served by the Seaboard
Virginia, the Carolinas, Georgia,
—
Alabama
indicates
—
were
industries of
located
in
lines
than
more
Star Cement
facilities
Furthermore, there
rise
the
states
in
was
capita
per
construction
dollar
program
electricity will more than double in the next 10 years.
demand, which in 1955 exceeded 1,260,000
kilowatts, the company plans to invest in the next three
years approximately $150 million for additional facili¬
ties. Of this, about $36 million will be spent during 1956.
Last month, the company filed applications with state
income.
is
reasonable
indeed
to
that
expect
this
trend
will
in the Seaboard's territory.
continue
duction
has
caused
the
establishment
of
number
a
of
.food processing plants to utilize this increase, and there
also have been other concerns, either new or
enlarged,
dealing in chemicals, furniture manufacturing, steel fab¬
rication and mining which have added to the business
activity in the
of
these
expanded
electric
board's
pany
interests,
a
result
total
the
generating capacity in the Seaboard's
increased by 15% over the preceding year.
was
During
demand
the
on
past
management
placed
heavier
orders
delivered in 1956.
freight
weight
there
year
also
the Seaboard's services.
even
an
diversified
and
as
power
territory
be
Again in 1955, partly
area.
cars
demand
for
this
2,400
steel
It
also
increased
an
that
year,
new
During the past
in service.
stainless
believe
to
reason
was
This gives the Sea¬
and
freight
year
there
the
cars
com¬
to
it put 1 000
ordered
25
new
will
be
new
light¬
passenger
cars,
including both
of which already are in
service and the balance expected within the
next few
sleeping
cars
and coaches,
some
weeks.
the
continued
over-all
industrial
growth
of
Alabama
growth in the territory served by the Seaboard.
Yet
compensating
If that situation can
creases.
service
the last
charge in¬
be corrected, we are opti¬
W.
Based
on Alabama's
abundant mineral and forest re¬
excellent climate, abundance of water, easilytrained workers, good transportation facilities, a favor¬
able political climate, an ever-growing market for goods
and services of all types, and the whole-hearted enthusi¬
asm of its people for industrial
progress, the continued
We feel
of
the
certain
best
that
1956
indicators
of
progress
of
area
an
will
Never has U.
no
exception.
the
is
the
expansion of the electric utility, be¬
the
cause
service
it
provides
meas¬
the net growth of all businesses.
The Florida Power & Light Company
ures
serves
tion,
its
load
capacity at the
Plant, in the Miami
total
our
897,000
our
system
KW,
more
pletion
the
85,000
Palatka
our
dale
Power
struction.
to
addition
on
to
McGregor Smith
the St.
load
increases
of
50%,
units,
ability to
all within
a
serve
anticipated
short
three-year
period.
It
is
enterprises
significant in appraising the future to note that
for
area—one of the world's greatest winter and
playgrounds to which airline advance reserva¬
the
year's—has
1955-56
now
planning
are
they
double-checking and
to insure maximum
added capacity for each
are
triple-checking
increment of
dollar
expenditure.
of
For
that most basic of
steel, is concerned
with the problem of financing the
tremendous expansion that seems in¬
example,
industries,
our
W.
C.
Snyder, Jr.
minimum
necessity to
support the growth of the U. S. economy. While esti¬
mates vary, a conservative guess is that steel making
capacity must be increased at least 25 million tons in
as
a
the decade ahead.
Some of this may be provided by rounding out exist¬
ing facilities. This "tag-on" expansion is relatively eco¬
nomical, costing perhaps $150 to $175 per ton of added
annual output. Unfortunately, the opportunities for this
type of expansion are rapidly exhausting.
Soon, steel must venture on the more expensive capital
road of building virgin capacity. This will cost roughly
twice as much as the tag-on expansion, the estimates
of
unit
all
season
were
become, at the
operations and
equipment.
Engineers
urged to develop new potential from developments.
possible contribu¬
This
is
new
a
a
same
third
above
last
time, the largest
challenging horizon not only for the
man¬
in the steel producing industry, but for companies
like
ours which specialize in developing and manufac¬
turing the cost-saving equipment that increasingly estab¬
lishes this basic industry as a highly mechanized opera¬
tion.
The
technological advance of the steel industry during
been tremendous. One of the re¬
the past 20 years has
sults, apart from increasing steel workers to one of the
most
highly paid employee groups in the world, has been
the lifting of steel
try average.
the Miami
tions
but
agers
addition to our Lauder¬
Plant, just north of Miami, is under con¬
our
supplier of capital goods and
services, Blaw-Knox is
line observer of this trend.
techniques;; Purchasing agents scan the
suppliers critically to extract competitive savings.
A 320,000 KW
increase
front
tions from
This addition will consist of two equal
will
a
Scientists and researchers explore the
be put
additions
a
ance
into service in 1957, the second in 1958.
This one addition will almost equal our total system
capability so short a time ago as January, 1950. These
one
As
engineering
are
which, with 8,000 KW increases in other
units, will put another 93,000 KW into service around the
of 1956.
dollar.
operators are planning expenditures with minute care.
serviceability and cost perform¬
River
middle
to
at least on this
Technicians analyze the:
bringing
capability up to
than four times
KW
the
prosperity can
basic
point:
ing the capital needed to finance demanded growth, steel
area,
Power Plant
be assured
industry, no less than
end consumer, is shopping around
get big value for its spending
current
of
put
Day system capability. We
have well on the way to com¬
Johns
welding
we
1955
of generat¬
Cutler Power
V-J
now
a
ranging from $300 to $350 per ton of capacity.
Faced with this big problem of generating and enlist¬
155,000 KW
ing
experienced such
the
center
During
area.
S. industry
in
third of the State's popula¬
a
with
Miami
SNYDER, Jr.
competitive spirit with high level demand.
Economists who express concern about the soundness
dicated
be
CORDES
President, Blaw-Knox Company
long-term expansion as never before,
of the nation.
economy
sources,
summer
Within the past few years there has been
spectacular
most concern is increases in equipment
rates which are currently
mistic about the outlook for the New Year.
Industrial
in
the
and
into service
Industry in the Seaboard's territory is becoming much
more diversified.
The region's growing agricultural pro¬
good level.
limestone
costs and wage
without
years
faith
general
capita gain in income was
higher than that for the nation generally, a trend which
has been noticeable for the past few years.
New pur¬
chasing power is of course generated through increased
family incomes, and business is accordingly stimulated.
sharply, and we are
this demand will con¬
taking place, and which have occurred during
three
of
Federal
One
John W. Smith
R. H. Smith
regulatory authorities to begin work on a
$100 million development on the Coosa River, which
over a period of 10 years will involve the construction
of four new power dams and the raising in height of an
existing dam. Thirty million dollars is being budgeted
for hydro-electric generating facilities on the Warrior
River. In addition to this hydro-electric program, work
is under-way on 550,000 kilowatts of steam-electric gen¬
erating capacity. The capital outlay for new facilities
is the Alabama Power Company's way of backing its
and
nesses.
this
a
To meet this
her
history. But that is no longer news. Each succeeding
year establishes new highs in all industries and busi¬
In
serves,
the Seaboard
Export
coal has like¬
traffic, such as cement
products, and heavy
chemicals, is increasing in
our territory.
So the outlook is en¬
couraging.
The feature of the present situa¬
and material
pace
output.
industrial
tion that gives us
in many locations to serve
a growing market for goods of all kinds.
Long range forecasts by Alabama Power Company in¬
dicate that due to the developments under way, the use
rapid
a
volume
Other freight
many
at
generating industry, an¬
user
of coal, is at
increased
tinue at
constructed
in
Chairman, Florida Power & Light Company
contin¬
a
encouraging
an
substantial
record
wise
new jobs and has stimulated activ¬
fields.
Birmingham, Mobile and Mont¬
gomery are becoming more important centers of dis¬
tribution.
Regional offices and warehouses are being
ity
power
other
has
Florida has completed the most prosperous year in
were
rate of per
It
tric
a
and
McGregor smith
Seaboard's
the
Plant
Company
Railway
experienced
improvement in the general business situation as com¬
with the previous year. The steel industry, an
important
consumer
of
coal, has
created thousands of
100
expanded by more than a score of
large companies in this same period.
ued
have
pared
Company; Central Foundry Company; and
multi-million
This
permanent char¬
a
along
1955.
we
Western
in mid-1954 to nearly 100% of ca¬
pacity at the present time. The elec¬
economic growth of Alabama is inevitable.
potentially greater growth in many
As a likely illustration
acter
1955
bama plants are: Republic Steel Cor¬
m. smith
other fields.
new
During
smith
and
Ala-
their
of
expansion
nouncing
Lewis
of
coast
will be in widespread use
will be available in 1959, and
there
h.
r.
President, Norfolk
Pullman-Standard Car Manufacturing Company.
conventional
this,
of Florida's sound economy in 1956.
gradually
increased
from
an - ap¬
proximately 65% capacity operation
Capital requirements will increase
substantially, through need to con¬
tract for the purchase of new equip¬
Service of four and one-half hours from coast to
of
anticipate the continued steady, rapid development
Porter
airplanes, both
the turbo-prop and the turbo-jet, should have the ability
to produce air transportation at a cost lower than that
and
_
We
hopeful that
of public
tests
usual
the
by
spite of high capital cost, the new
Florida
manufacturing jobs increased 15% and this rate of devel¬
opment has been closely maintained through November,
the latest reported month.
Foundry Company; Connors Steel Division of H. K.
Company; Reichhold Chemical Company; Lone
to
principal airlines have in some cases already met this
requirement through the negotiation of long-term loans
The
In 1954, when the annual rate of manufacturing
employment in the country dropped 5V2% there was an
increase in Florida, and in the Miami area that increase
was 8.7%.
During the first half of 1955 the country as
a whole just about
broke even, but in the Miami area
demand for American
remains
ment, most of it to be delivered in 1959 and
on
the
print Company.
Some of the major companies an¬
convenience and necessity.
the
was exceeded
by only 10
nation, and percentage-wise it was ex¬
ceeded by only one state east of the Mississippi, where
seven of the county's eight great manufacturing centers
are
located.
Its industrial growth is both rapid and
in
(Alabama), Inc.; Ideal Cement Company; Scott Paper
Company; Hazel-Atlas Glass Company; U. S. Pipe &
tified
for
This numerical increase
1947.
states
be
the Civil Aero¬
It
Board.
nautics
In
developing manufacturing center in Florida.
And, in Florida, factory jobs have increased 50,000 since
that this rate of parelleling
needed or that it can soon be jus¬
agency,
proven
from insurance
and fastest
poration; Olin-Mathieson Chemical
Corporation; Reynolds Alloys Company; Stauffer Chem¬
ical Company; Monsanto Chemical Company; Courtaulds
regulatory
C. R. Smith
Thursday, January 19, 1956
stable.
President, Alabama Power Company
least
...
profits
more
closely to the all-indus¬
The need, however, is for steel to
pace
in¬
dustry in profitability, and thus to generate the financial
resources
need for
growth.
I believe this will be accomplished.
The future poten-
tial from technical advances and still greater mechaniza-
t
Volume 183
Number 5460... The Commercial and Financial Chronicle
tion exceeds the achievements to date.
in
opments
The rise of devel¬
improve the efficiency of
iron-making and metal refining; greater use of pelletized ore and higher blast furnace temperatures, thus
permitting more output per foot of hearth and lower
oxygen
to
use
coke
consumption; improvements in automatic pouring;
refractories; in furnaces; in rolling and conditioning
in
facilities—these and many other developments have not
yet made their maximum contribution.
There is also the rise of chemical engineering in steel
making, which will permit more salvage and extract
greater values from raw materials and by-products.
And in time steel may develop, perhaps through coop¬
erative
research
capital routes to
locating
on
crash
a
new
capacity and to
the
on
flexibility in
more
total
The
economy.
same
be said of
may
the growth movement and the rapidly advancing tech¬
nology in the dynamic field known as the chemical process
industries. They, too, are hard buyers, extracting every
competitive advantage, feeling the compulsion of stretch¬
ing their capital resources over the maximum frontier
of growth.
And
it goes,
with one industry after another feeling
competition, of the need to reduce costs, to
develop capital for growth, and to obtain the maximum
so
the lash of
progress and
utility from each dollar of capital expendi¬
Much
tures.
realize that
we
like to
would
I
as
sell
situation is
this
easier
to
Our economy has more
self-correcting and progressstimulating ingredients than many people may suppose.
This is a 24-hour-per-day, 365-day-per-year battle on a
one.
frontier that has, as yet, no
visible end.
JOHN I.
SNYDER
Executive
Mainland
Economic
During the
servers
as
Development Administration,
New York City
1955,
ob¬
the world visited the Common¬
Rico.
Representing such far-flung
Africa's Gold
Coast, Guatemala, Korea, Thailand,
Brazil and Israel, they came to see
Liberia,
Iran,
Egypt,
just how
the
size
Burma,
test-tube island
one
of New
Jersey)
was
(half
lifting
itself up by its economic bootstraps
without the aid of government hand¬
outs, dictatorial controls
planning.
In
the
same
period,
equal
number
but
this
ferent
ine
a
time
toured
mainland;
I.
Snyder
taxes
almost
an
with
of
for
dif¬
exam¬
profit incen¬
on the U. S.
them,
decade,
S.
Rico,
somewhat
a
specific
among
a
U.
Puerto
tives widely promoted
John
a
no income
large labor
pool, pre-built multi-purpose fac¬
tories, worker training and selection, low freignt rates.
-Neither group
On the borad
was
disappointed.
Puerto Rico con¬
a
pattern of growth that has been accelerating
rapidly since 1940. Net income, a good barometer, was
up to $990,000,000, roughly three-and-a-half times that
15
proofs of this rise
dence in 1955.
new
vision
put
were
very
this
1955
development,
showed
1954.
a
sales
moderate
Indications
point
better year in 1956.
The growth of the
beckoned
from
the
were
terns
of
Through
estimated
the
American
For the
12
States.
Public acceptance
of canned goods is increasing con¬
stantly. Replacement of the unsanitary bulk measuring
and merchandising of the past with the attractive and
ing 1956, manufacturing income at close to $160,000,000
will top farming revenue for the first time and become
the dominant theme in the Commonwealth's economic
efficient food
retailing methods of the present has helped
helped by the development of all unit
packaging, and by the tin can in particular.
Today, many different kinds of products (food, house¬
hold, drug,1 cosmetic and industrial items) are offered
in thousands of different types, sizes and shapes of cans.
Tomorrow, and in the years to come, many additional
products will be offered.
Of equal importance in broadening the consumer mar¬
ket for canned goods has been the introduction of new
techniques for more efficient and economical production.
These developments are contributing to increased adapt¬
ability of the metal can to new uses, improved appearance
and greater strength.
Modern high-speed production methods are a far cry
from the completely manual operation prevalent at the
turn of the century.
Present-day can lines easily turn
representing an investment of over $55,000,000
$12,250,000 ammonia plant.
refineries
and
a
Record
(3)
purchases
from
the
the last 12 months had one direct effect on
mainland businessmen
—
United
continental
Puerto Rico's accelerated economic
States.
during
thousands of
pace
record sales of $524,000,000 on
further increase in Puerto Rican
family purchasing power should bring this total up to
$550,000,000, with purchases from every state in the
the island.
Next year, a
Increase
U.
S.
in tourism and tourist facilities. Con¬
were
attracted to Puerto Rico
Although National only recently
three companies in the field,
it has made important contributions, through research, to
the development of new uses for cans.
An
gains
of
a
example, which is finding increasing
is the soft-drink can. National
acceptance,
pioneered in this field, and currently enjoys more than
its proportionate volume, as compared with the
Caribe Hilton;
$4,000,000 Mills-Landrum hotel! and an $8,500,000
Henry Held hotel project that includes complete con¬
vention space.
With this increase in facilities, Puerto
Rico has only begun to tap its enormous tourist potential
of climate, history and central location.
twice
new
In
important
consumer
golf course; a 100-room extension of the
a
to the ranks of the top
rose
to come, including: Laurence
Rockefeller's El Dorado luxury resort with an 18-hole
greater
cans
cans
the industry's growth.
tourists
1955
for
base
400
per minute; most can plants produce mil¬
daily.
We at National Can are proud of our contribution to
in record numbers. Over 150,000 visitors
added $25,000,000 directly to the Commonwealth's econ¬
omy, up 10% over 1954.
Equally important, $20,000,000
in new hotels and related construction formed a solid
during
been
lions of
out
Union.
(4)
has
and
manufacturing
can
led
shift
the
more
from
popular flat-top style.
With the surface
dicated
1955, Puerto Rico was neither the "stricken land"
decade ago nor yet up to the American standard
industry in general. Our company
cone-top style to the currently
the
of demand barely scratched,
Continued
on
much in evi¬
what's behind the
"Golden" Dividend
Record
months ending
manufacturing,
$26,000,000 in 1940, had reached $151,400,000 and
gaining on the $159,600,000 from agriculture.
General Mills?
of
Our
Governor, Luis Munoz Marin, has just predicted
1956 may witness the turning point, with
manufacturing outstripping farming as a source of in¬
come.
As many visitors have observed, the wrench is
that the year
fast
replacing the machete in modern Puerto Rico.
businessmen, investors and man¬
ufacturers, there were equally interesting dispoveries.
Since 1947, Puerto Rico's Economic Development Ad¬
ministration, through its New York, Chicago and Los
Angeles offices, had been enthusiastically describing to
Stateside manufacturers a wide variety of industrial in¬
centives and natural advantages offered by the island.
General Mills has earned and
For continental U. S.
Tax
considerations
were
paramount
here.
With
no
dends
its
on
since 1928.
listed
on
the Big
common
paid regular divi¬
stock without reduction"
Only nine other companies with stock
Board of the New York Stock Exchange have this
record. With
"Golden Ten".
Genbral Mills they form the
representation in the U. S. Congress, Puerto Rico did not
come under Federal tax law.
Moreover, the self-govern¬
ing Commonwealth, like the American West of 90 years
before, was being encouraged to get part of its share of
normal mainland expansion. Even in 1955, Puerto Rico
with V/4% of the U. S. citizenry received less than 1/10
of 1% of U. S. new plant investment.
It thus has the
For the dramatic story
of General Mills
—
its philosophy and practice
BUSINESS WITHOUT BOUNDARY
great needs—and also offers the v/ide open opportunities
—of
To
a
new
frontier.
Federal
.
tax
freedom, Puerto Rico's legislature
added 100% local tax exemption for 10 years under the
Industrial
Incentives
Act
1954, along
on-the-job training,
were
good.
UP
OR
A
COPY
SEND
FROM
YOUR
YOUR LOCAL BOOKSELLER,
ORDER, WITH
$4.75. TO
of
with modern
low-lease factories,
technical aid
and economic counselling to make the package more
attractive to brand new or branch enterprises — sinco
"runaway" plants are excluded by regulation.
Results in 1955
PICK
Some 64 mainland, affili¬
UNIVERSITY
OF
MINNEAPOLIS
MINNESOTA
14,
the in¬
potential market for soft-drink cans is probably
mere
was
economy.
low-cost
(1) Industry will outproduce agriculture.
Industry
in general and manufacturing in particular are the heart
and soul of Puerto Rico's development program.
Dur¬
horizon; and record
electrical
income from
even
packaging in at¬
tractive, one-trip containers, it has
changed family buying habits, and
has contributed to the higher stand¬
ard of living enjoyed in the United
Robert S. Solinsky
by 1955, all agricultural income accounted for only
the
an
manufac¬
ing, packaging and advertising pat¬
forward these four predictions on
was
mid-1955
to
turing industry has been dynamic
throughout its history. It has played
a significant role in the merchandis¬
all reported.
16% of the total net income.
Despite
of cans in
gain over
can
More than
antennas
hurricanes
summer
which sharply reduced the yields of
Puerto Rico and 1956:
if Puerto Rico's economy was obviously growing,
also rapidly changing its complexion. In 1940, as
in the half century previous, Sugar was King.
a
the threshold of
several seasonal food crops.
investment,
But
in
light of the disastrous
good beginning had surely been made, and prospects
future seemed bright.
then
on
good^ when consid¬
the
more
me
industry stands
100,000 automobiles, including
Cadillacs, crowded the highways; 80,000 tele¬
appliances
But
in
ered
a
sales of refrigerators, yachts, motorcycles and
it
The can-making
for the long-term
Let
SOLINSKY
before.
years
Material
2,000
a
S.
another year of profitable operations and increased sales.
The 1955 results were exceptionally
than tripled in 15 years, at $436 was still
about one-half of the poorest U. S. state.
Nonetheless,
though
socio-economic front,
tinued
of
by
tinental
objective in mind—to
host
ROBERT
long shot.
Unemployment still wavered
around 15%, the equivalent of 10,000,000 jobless in the
continental United States. Also, per capita income, al¬
socialist
or
continental
of
manufacturers
Bootstrap."
growing technical know-how, industrial facilities and
public utilities plus an almost fanatic desire to succeed
did not solve all of Puerto Rico's economic problems in
1955
But the Commonwealth
remarkable program and record of progress
President, National Can Corporation
production next year include two mainland-affiliated oil
1,200 "Point Four"
some
a
in "Operation
tion, expanding previous operations, were, among others,
Remington Rand, Sterling Drug, Consolidated Cigar and
the Shoe Corporation of America.
Even at this point,
the 10-year score of EDA-promoted factories is impres¬
sive: 342 new plants in operation, an investment of $150,000,000; annual sales of $125,000,000; EDA-^caused em¬
ployment direct and indirect of over 65,000, supporting
almost a quarter million Puerto Ricans; a nicely bal¬
anced product range that includes electronics, plastics,
metal work, electrical equipment, apparel, textiles, foot¬
wear, cigars and optical instruments.
over
Puerto
of
places
all
from
wealth
year
International Latex, Beaunit Mills, the Carborun¬
Company and the Sunbeam Corporation. In addi¬
dum
living it plans for the future.
does have
(2) A trend toward industrial bigness.
Big-name
plants and large-scale installations were a prime feature
of 1955.
Projects begun in 1955 that will reach full
Rico
Puerto
roster
future.
Commonwealth of
Director,
Rico's
of
Among the top
during the year
branch plants.
up
Puerto
to
markets,
essentially healthy
an
added
But increased mainland and Puerto Rican
constructive influ¬
a
companies set
were
facilities for steel production.
new
The dramatic outlook for steel is
ence
scale, lower cost
program
ated
names
117
(377)
MINNESOTA
PRESS
—
read
page
118
118
The Commercial and Financial Chronicle
(378)
Continued
great
as
from
page
the current market for beer cans. The latter
nearly 20% of the industry's entire can
as
output.
A
relatively
product, which can prove very im¬
new
Much more will be heard
about this type of container during 1956.
The industry is making progress in eliminating the
valleys between the peaks of heavy demand which occur
during the perishable food canning season. Oil, paints,
detergents and similar household and industrial items
are packaged and sold the year 'round; they do not im¬
pose a seasonal demand on can manufacturers.
Nonseasonal foods or meals in cans, such as pork and beans,
spaghetti and meatballs, meat stews, permit off-season
packing. Canned pet food is another very substantial
portant, is the detergent can.
year-'round item.
National
farther in leveling out the;
peaks and valleys in production, through its
recently expanded activity in t"e housewares field. Our
Can
goes
even
seasonal
is
company
the
leading
decorated • metal
waste baskets,
of
producer
housewares, which include canister sets,
slep-on refuse
grills and
cue
Barbe¬
also manufac¬
trays and many other items.
cans,
picnic
metal
baskets are
can-making industry's relentless search for new
for
its
products; its constant trend toward lower
higher operating efficiency, augur well for the
Moreover, in 1956 we should have the benefit
costs and
future.
of
favorable
a
better year
levels of
~I
in
business
businessmen
will be an
Most
1956
for tne economy than 1955, with high
industrial
optimistic
am
atmosphere.
economic analysts feel that
many
even
nearly in meir true guise, because the
more
production and personal income.
the outlook for the
on
power for Atomic
Commission needs will prove to have become
completely stabilized during the last quarter of
1955, and the marked statistical distortion thus injected
almost
will be removed.
all
the
above
that
the
electric
For
general, and for National Can in particular.
GEORGE
SPATTA
tion
The
Clark
will achieve
Equipment
Company
all-time high in em¬
an
volume
profits
1955
for
of
and
in
for
manufacture
lift
highway
and
to
expect
We
activities;
three
engaged
and
sales
we
duplicate this record in 1956.
ponents
industry
will
indica¬
exceed»its
1955
highs in sales and generation of energy and will
forge ahead to new levels of capability and strength
to
its
meet
responsibilities in our ex¬
panding economy. Capital-expenditure-wise, since ex¬
pansion of utility plants and equipment must be planned
on
the basis of expected load growth and authorized
two to three years before commercial service, capital
expenditures will be heavy. The exceptional and, to a
certain
challenges
and
demand
degree, unexpected extent of 1955 s growth in
cut into industry's margins of generating cap¬
ability
and
physical
of
plant
to
extent
greater
a
,
than
Thus, to maintain adequate reserves, in the
rising demands that analysis of the coun¬
the
leads them to expect
in the next few years, the utility companies have
budgeted a record $2.9 billion for expansion of genera¬
tion, transmission, and distribution facilities, to be spent
in 1956.
Of this amount a substantially heavier than
try's economic projected growth
will
porCon
pro-rata
place, and will contribute
in the latter half of 1956.
take
to bolster the economy,
ulus
of
the
Electric System, the stim¬
economic
factors, trends, and de¬
velopments prevalent throughout the country made 1955
a
year of unparalleled activity and
progress.
At no
major
System's formation has as much activity
involving industrial expansion and location of new in¬
dustry in the AGE territory taken place. Of tremendous
long-term economic significance to the entire Ohio
River
ployment,
utility
every
time since the
President, Clark Equipment Company
are
com¬
the
trucks,
merchandising
of
trucks, and the manufacture and
merchandising
of
road-building
equipment. We expect all of these
activities to continue at
a
high level
JULIAN
Valley,
recent
well
as
the AGE System, were two
First, by the Kaiser Aluminum
as
announcements:
Despite
billion, compared to $5.0 billion in 1954
of $5.2
contributor
million
to
increase
future,
would predict general
PHILIP
In
the
by
ances
American
face
I
good business
for hie country as a whole.
George Spatta
President,
and
of
SPORN
Gas
1955
many
Electric
and
Service
record-breakng
Corp.
perform¬
the
the
1956
country's economy as a whole and by
utility industry, it would not be unnatural
electric
for
to
be
a
of
year
average
or
even
subaverage
activity and results, electric-utilitywise.
That
the
to
of
indications
present
contrary is due to
basic
a
of
First, 1956 promises to be
to
a
good
a
—
year
in sales of industrial and commercial
electronics,
million
of
in
which
1954
Second,
added
the
million kilowatts of
replacement
parts, which went
million to $700 million.
from $550
Production
of
about
television sets in 1955
high
new
value
of
somewhat
also
the
in
Third, there
basic elements
are
in
dustrial
of
these
at
an
is
population:
all-time
being
Our
a
very good year, with total production mounting
nearly 14 million units compared to 10 million in
1954; much of this increase was attributable to very
strong demand for auto radios.
Although retail sales
to
of television in the late fall months did not come
rapid rate;
formed,
creating
new
is
increasing
and larger families are
continued
demands
for
levels of late 1954, demand was characterized
by remarkable stability throughout the year. The tele¬
vision business remains strong currently, especially the
replacement market, but because of the very hign total
1955, indications are
in 1956. My guess is
that set production might decline as much as 10% to 7.0
million black-and-white sets, and that radio production
might drop from 14 to about 12 million un.ts.
production
that
electric energy in
use
of energy in
latter residential
8s
ing
industry and growth in the
the
per
capita
home
and farm
and on the farm.
These
loads will continue in 1956
they h&v6 in other years, to constantly
grow—§ivus a firm base only mildly
responsive to adverse
economic
turn
conditions.
the
to
normal
The year
trend
of
1956 will
residential
mark
sales
the
size
total
The
assuming
increasing poition of total energy sales each
year
only apparently interrupted in the past three
years by the extraordinary
energy requirements of the
United
States
Finally,
sensitive
Atomic
volume
of color is about
even
to
in
industrial
changes in
energy sales, which
economic activity, the
dip
are
in
in
1956
a
behind the estimated timetables
year
when it was thought that several hundred
thousand sets might be made in 1955; probably not more
than 50,000 color sets were actually turned out, and a
a
year ago,
serious technical problems must
expansion
years' history of the electric utility industry by
still be overcome beiore
fense showed
private
has
power
never
before
undertaken
been
the
in
the earliest.
Although procurement of electronic equipment for doa modest drop to $2.4 billion in 1955 from
$2.5 billion the preceding year, the electronics industry
its share of total military
of contract awards
by the Department of Defense for the fiscal year 1955.
Furthermore, since the rate of awards fell somewhat
behind the appropriation rate in 1955, a gain in elec¬
tronics contracting of about 10% in the current fiscal
year is probable.
How much of this will be translated
into actual deliveries is, of course, uncertain, but it
appears likely that a level of $2.5-$2.6 billion may be
attained.
The proportion of defense spending for elec¬
tronics should continue to increase in 1956 and beyond,
reflecting many dramatic developments in the field of
complex weapons systems, early-warning defense in¬
stallations, and guided missiles. For example, expend¬
itures for missiles alone increased more than 43%, f.om
$529 million in fiscal 1955 to $756 million this year, and
preliminary estimates indicate a level of $1 billion in
and
675,000 kilowatts in 1958.
Included in the 1956
capacity of 575,000 kilowatts will be the world's first
supercritical steam-electric generating unit, at Philo,
SPENCER
extremely interesting
an
As in the
business will feel the
case
one
of all election
impact of stepped-up
po¬
at the
school
and
program,
fiscal
tronic
time balance the budget
taxes, will be very much
in the limelight.
Nineteen fifty-six will start on a
high plateau of basic strength in our
also to
us
in
the
10
There is a wide variation in
degree to which various indus¬
demand.
those
In
segments
gets
Kenneth A. Spencer
of
al¬
industry where capacities have
ready been substantially expanded as in the nitrogen in¬
dustry, the coming year will be extremely "competitive
with some over-supply. Even in these cases, however,
basic stability is provided by the fact that continued
growth and demand will, in a period of years, consume
the new supply which has been recently constructed.
In
other
excellent
industries,
of
fuel
of which the coal industry is
for
The
substantially
electric
Demand is
generation
shifting from
by
long-term
increased
are
one
purchases at depressed prices
supply
an
example, the change in trend will be rather
conspicuous.
contracts
to
at
missile represents elec¬
industrial and commercial
in
both
new
military
industrial
and
i^
complicated electronic
applications,
industry is faced with the problem of
our
and better materials, components and func¬
of achieving
a
much higher
re¬
For the parts manufacturer like
Sprague Electric Company, this means that as equ'pment
tries have recognized and anticipated
this
electronics
liability in their design.
years.
the
generally more than
that
guided
a
tional assemblies, and
15
to
in
creating
tremendous
next
for
facet of
every
demand for goods and services which
before
of
growth in the demand for replacement parts
be expected.
devices
last year there has been an increas¬
lies
interest
of
.In view of the increasing use of
domestic economy and a sound stim¬
for future growth.
During the
the
is
cost
equipment.
tinued
ulus
of
It
the
applications are expanding at the rate of about 2C%
per year, and recent estimates indicate that this portion
of our business may double in size by 1960. Strong con¬
ana
same
awareness
1957.
one-half
Markets
and reduce
ing
slightly
increased
probably
procurement, attracting nearly 20%
budget, support the farmer; expand
road
economically feasible, it seems prob¬
production will not start before 1957 at
any
(OVEC).
dertaken by the AGE System, 575,000 kilowatts will be
brought into service in 1956; 450,000 kilowatts in 1957;
the
that
except Ohio Valley Electric Cor¬
Of the 1,700,000 kilowatts being un¬
group
poration
felt.
Energy Commission.
market
entertainment
extent upon whether a substantial
of color TV sets is produced. The development
mass
re¬
trend
in
occur
may
the
of
becomes
fan
a
attained
sales
and
contraction
some
able
new
housing. And there has been no slowdown in the re¬
quirement
indeed the demand—by these new and
by
existing families for a continually improving standard
of living.
This means growth in the per capita use of
to
tp
the peak
color TV
litical activity—the struggle to support a greater defense
population
Sprague
had
developments, will require the AGE System to
institute in 1956 an unprecedented three-year expan¬
sion program for the addition of
1,700,000 kilowatts
of new generating capacity.
Such a heavy program
years,
present longterm trend of the national
economy which have an
inertia effect, tending to
pull the electric demand for¬
ward in spite of hesitations in the
economic cycle. One
K.
more
figure of two to three hundred thousand now appears
to be the most optimistic guess possible for 1956.
Since
The year of 1956 will be
the
Julian
the
toward
demand
costly models. Al¬
though less widely publicized than television, radio also
larger and
These loads, augmented by expectations of mounting
residential, commercial, and other industrial sales re¬
sulting from intensified load-building efforts, the new
population and enterprises to be attracted by these in¬
from many points of view.
generating
rtulip Sporn
capacity during the year, an in¬
crease of 11.6% over
1954, its amaz¬
ing increase of 16.6% in sales, brought about a reduc¬
tion, in spite of the large increase in new generating
capacity, in the reserve or margin between generating
capability and peak demand from the 1954 figure of
21.2% to 20.8% at the end of 1955.
greater \
preceding year beca.se
shift
a
a
units, and their dollar
m
was
in
than
million
7.7
represented
of
KENNETH A.
new
$c50 million, and
pletely integrated, aluminum development near Cresap,
W. Va.; both operations to be based on coal-fired elec¬
tric energy from the AGE System.
President, Spencer Chemical Company
although
the
industry
staggering total of 12%
$550
from
rose
to
will depend to some
breaking thermal efficiency of close to 40%.
activity should continue to increase
throughout the first half of 1956,
although at a lower rate of rise than
1955, followed, perhaps, during the
second
half, by a leveling off or
even a
slight dip in business tempo.
$1.7
Chemical Company to establish a major aluminum
reduction plant at Ravenswood, W. Va.; and then, that
of the Olin Mathieson Company to build a new, com¬
Ohio, designed to operate at a steam pressure of 4,500
per
square inch,
with initial temperature of
1,100°F and double reheat temperatures of 1,050°F and
1,000 °F. This unit will, it is expected, attain the record-
in fact, over-ail, a
than
1955.
Business
year
prod-
billion, but
the sharpest percentage gains were
and
pounds
reasons:
business
better
are
number
radio-television
in
total
$300
a
and other home entertainment
ducts
and the previous
Chief
billion in 1953.
this gain was
75
foreseeable
in military electronic
slight further drop
a
procurement, total sales of the electronics industry at
factory prices in 1S55 reached a new high of about $5.4
of
the
in
SPRAGUE
K.
Sprague Electric Company
President,
peak
1956 offers
reasons,
of all these factors througnout
another good year in 1956.
composite result
heavy
very
Energy
For the American Gas and
industry
can
The
the economy should be
growth in demands for large blocks of
face
The
and
better than it has been
normally resulting from any leveling off or lag
industrial output will, in 1956, be cushioned to
a considerable extent by new industries and enterprises
which will be brought into service as a result of 1955
expansion programs.
Percentage-wise, gains made in
industrial energy sales in
1956 will begin to appear
the
anticipated.
tured.
uses
prices.
in
absorbs
now
is
Certainly the outlook for the coal industry
for quite a number of years.
sales
117
1956
Thursday, January 19,
.
.
.
requirements
making themselves
of short-term
an
attempt to
fair
and
or
spot
assure
reasonable
more
crease
as
means
a
greater
incidence
a
entire system.
mation
in the
tronics
of
use
single part can mean the failure
assembly of end equipment in the elec¬
industry,
as
as
in
semi-conductors,
vices, etc.,
ment
of
are
all
and
Moreover, the trend toward auto¬
other
another challenge, and many new
such
of components
complexity is added by parallel cir¬
cuits, the failure of
an
reliability must in¬
exponential curve, for greater complexity
unless still greater
of
degree of
the
complex
an
industries
constitutes
functional components
magnetic
pulse-handling
de¬
affecting the design of electronic equip¬
types.
In my opinion, all
of these things
combine to make the present a period of greater change
than
our
history.
industry
has
ever
witnessed
in its
53-year
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
LAWRENCE F.
STERN
HERMAN
Chairman, American National Bank and Trust
President
Company of Chicago
Whether
can
which
has
been
and
Former
We
predict with accuracy the course of
business for a full year ahead in an economy as com¬
plex as ours is open to question. This is especially true
now, following the excellent business of recent years
one
(379)
interrupted
President,
look forward
the
needs
be
must
consumers
of
much
business during
our
recently
S.
1955 which
to
times
released
and
building
housing
tant
affect
wise
past
such
impor¬
boom,
significant.
since these
be
may
is
especially true
others which supply them with
Their large payrolls like¬
contributors to consumer buying
in the
growth
volume
of
lation.
1955
finance
increased
business
System
tangibly
as
discount rate
rising
prices,
illustrated
its public
and
activity
at
increases
significant
least
at
are
its
by
expression of
in
concern
enough
hard pressed to equal
With
the exceptions already
noted, business
at
capacity
levels
forward orders to
the
into
fell
first
there
off
of
the
and
assure
half
is
as
lend
While
year.
building
and
economy
the
on
of
had
high
Our
econ¬
year.
times
declines.
country at
highest in the history of
continuing
a
to
consumer
this
that
note
195f>, though the usual seasonal influences will of course
during the winter quarter. While the econ¬
much more buoyant condition
ago, the monetary policy of
Canada, resulting in a general tightening
of credit, is expected to curb any over-extension.
Many sections have experienced an early and severe
winter to date, which may affect unfavorably employ¬
ment in the industries most susceptible to seasonal in¬
fluences.
But apart from this, the prospects for the
basic factors
new capital investment, consumer ex¬
has
resulted
in
Fortunately
Government
tensions
the fiscal
than
American
people
for
demand
a
the
better
credit
of
heavy pressure
policies
monetary
and
of our
being used to check unreasonable
are
tending
thereby
on
our
level
to
for
As
from
by
own
company,
of the major devel¬
some
industry and by the Government to indicate that total
past
In
it
fact,
plant
is
and
construction
new
possible
equipment
that
this
1955.
income
months
automobile
business
outlays
for
will
exceed
those
year
result
is
ahead.
new
sales
moderate increase in
yardsticks such
as
production, etc.,
are
On
the
dicate
of
the
should
other
been
good
very
railroad
so
in
little.
a
a
carloadings, electric
situation
the
this
in
has
the
there
summary,
year,
efficiency
should
a
improve
new
and
of
stable copper market can be developed and
being parallel, a
in the rural
income
added
of
4
to
significance
5%.
way,
would seem to indicate another year
in
the
its
previous
year,
continuation
and
a
regular monthly increases
high degree of confidence
the
contributing
necessary
economic
picture
1956
to
continue
their advance,
though
a
restriction of con-
other conditions
Continued
RECTOR
STREET,
In
Notice
on
page
to
NEW YORK
NEW YORK
6,
All Holders of
Unsurrendered Stock Certificates for
Preferred Stock ($7), $6 Preferred Stock,
re¬
Second Preferred Stock, Series A
should
many
are
but there
($7), and Common Stock (old) of
AMERICAN & FOREIGN POWER
COMPANY INC.:
signs of
an
easing in
On
February 29, 1952 the Plan of Reorganization (Plan)
Company Inc. (Foreign Power), pursuant to Section 11 (e)
Company Act of 1935, became effective.
:v/v-
things to be optimistic
for the first time in
are,
over
segments of business
some
Pursuant
that should temper our thinking.
of American & Foreign Power
of the Public Utility Holding
the Plan, all rights of all holders of the Common Stock (old) and of the
($7), $6 Preferred Stock and Second Preferred Stock, Series A ($7), includ¬
all accumulated and unpaid dividends on such Preferred Stocks, have been
to
Preferred Stock
ing the right to
revoked, abrogated and cancelled except such holders' rights to receive, subject to the terms
of the Plan and within the time limit therein provided, the new securities of Foreign Power
R
E
D
G
I
G
N
Filling, Land Reclamation,
Canals and Port Works
allotted
to
Holders of certificates for such Preferred Stocks and for such
We
equipped
are
tion
to
and port
Ship Channels
execute
all kinds of
to
the
Federal
dredging, reclama¬
Plan
to
claim the securities
prpor to
Government
Cable Address:
Citizens
or the proceeds thereof
been entitled under the Plan.
of said securities
or any
other cash to which such
be obtained from
Corporate Trust Department, 46 Wall Street, New
are
the
new
Common Stock
share for each 100 shares of the
new
Common Stock,
entitled to receive dividends
upon
share in cash plus
one
December 5, 1952.
the 10th of March, June, September and December, 1953.
IStf per share on the 10th of March, June, September and December, 1954,
end dividend of 15^ per share paid December 10, 1954.
ISd per share on the 10th of March and June and on the 9th of September
ber, 1955, plus a year-end dividend of 15<- per share paid December 9,
15^ per share on
HOUSTON
•
stockholder of Foreign Power who
of the
Copies of the form of Letter of Transmittal which must accompany certificates represent-
1()(!' per
Atlantic, Gulf and Pacific Co.
Park Row
no
ing stocks when surrendered and other material relating to the Plan may
on
15
provides that
the cash to which he is entitled pursuant to the terms
the expiration of six (6) years following February 29, 1952 shall be entitled to
receive any part
Upon exchange, holders
paid as follows:
Longest Experience
BArclay 7-8370
(old) who
years
heretofore
Interests Everywhere
NEW YORK 38, N. Y.
or
Bankers Trust Company, Exchange Agent,
York 15, New York, or from the Company.
Correspondence invited from Corporate and Private
~
prior to the expiration of six (6)
stockholder may have
work anywhere in the United States
Contractors
same
Notice is hereby given that the Plan
Improvements, Deep Waterways
and
Common Stock
from February 29, 1952, to the Exchange
Agent appointed under the Plan, will receive in exchange the new securities of Foreign Power
and the cash (if any) to which they are entitled under the Plan.
surrender
shall fail
River and Harbor
by the Plan and such other rights of such holders as are specified in the Plan.
them
2,
State
TEXAS
Bank
Capitol 4-6091
"Dredging," New York
BIdg.
psycho¬
logical fillip, consumer expenditures might be expected
good year for the country.
the
but
de¬
capital projects already announced, together with
AMERICAN & FOREIGN POWER COMPANY INC.
areas
vefy
high outlay for capital investment purposes.
over
increasing sources of copper and aluminium permit
higher rate of production of our mill products,
a
resource
The tighter mcney policy may be
With labor income recording
operations considerably.
our
units and
engineering and
distrubing.
about this year,
a
improving
for
of
power
whole
too
expenditures
volume
expected to effect some reduction in housing starts, but
profitable
those under
TWO
in farm
drop
year
and
increasingly
reaching
78,000 housing
including
still good.
cent
years
are
ought to be a good year for us and all
Other business
considerably smaller than- in
In
Thus, if
the
a
As
show
1956
into
the
amount of the decline is
be
in
far this
should
and
the months ahead.
hand,
further
election
not
Capital
unsatisfactory and conservative predictions in¬
a
years
operation.
of
be
overtime work
picture
wage
have
two
increasing capacity during the past year and continuing
high and
very
Some
the general
retail
remains
still
industry has been cut back but
has affected
an
good.
''
Personal
the
still very
are
a
year
velopment projects.
opments which required heavy expenditures during the
expenditures
for
1955,
considerable
our
a
t
by restricting unwise
economy
case
of
—
the
down
the
was
Bank
penditures and foreign trade—seem bright.
\
New capital investment has as backlog a considerable
volume of construction and other outlays carried over
ex¬
expansion.
starts
enters the year in
omy
the
and
consumers
be at work
demand for the
quality conscious today than ever
more
are
than
are more
mills and factories.
our
and
There
working steadily at their jobs and
better cars, better appliances — all of which
require better materials and better workmanship.
very
let
contracts
the
are
for
demand
erally high and included a bumper
wheat crop of about half a billion
James Stewart
bushels.
New
capital
investment
seems
likely to have .exceeded $6
billion, a new record made possible by an expanded
housing program and increases in practically all other
categories.
'
Canada is not without its economic problems, however.
The chief of these is undoubtedly the disposal of its
large wheat surplus. Certain branches of industry also
failed to share in the general prosperity, including the
implement trade, textiles and coal-mining in some areas.
The momentum of 1955 seems likely to carry well into
homes,
enough
housing
of
compared with 1954.
producers
very
record
a
new
employment throughout the
interesting
whole
a
before
will
was
is
It
Steel production
industry
full
products of
the
high rate of production well
a
this
enough
were
year.
a com¬
volume
high level of foreign trade, with
gains in primary and partlyprocessed goods, plus a lively do¬
interfered
number
a
of booms followed by sharp
should be
there
over
to
the
A
factors which in the past have at
are
cause
65 million Americans
last several months.
good in the final quarter of last
of
American business and enterprise.
exceed the
or
because
off
us
schedules that
wage
the
credence to the belief that while business this year
be good, it will be
which
in
eood
consumer
rate, the cautious attitude of the Federal Reserve
was
These
been the
outstanding in the past 12 months, the tightness
of money and indications of an inadequate supply of
to
as
is not based upon a combination of heavy military
expenditures, fear of inflation or high inventory accumu¬
credit
money
business
these
for
omy
There
tremendous
increase
goods, lifted the volume
of industrial production by about 8%.
Agricultural
production was gen¬
lized
power.
The
prices, this indicates
parable
mestic
employment to start
many
important
uncertainties
1956
business
the
level of
important factors, with perhaps the
two most important being a stabi¬
H. W. Steinkraus
materials.
raw
are
played
in
changes
This
and
have
roles
these
industries
the
and
over, there was
interruption of production
an
a whole, or to
$26V2 billion. As there was
significant change in the general
when
year
here
demand
for the year as
abroad
past
increased
no
were
dependable scheduling of our
requirements.
I believe that present good busi¬
ness conditions will
extend through
seem
year
parts
in
the
strikes
cop¬
There
estimated to have risen about
now
10%
customers'
to forecast less satisfac¬
business in this field in the
ahead. Since automobiles and
year
tory
Lawrence F. S:ern
late
economy
with
The drop off in home
starts
up new records in most segments of
in 1955. Despite a slow start in the first
quarter, Gross National Product was at a seasonally
adjusted rate of $26.9 billion by the third quarter and
materials the world
predicting
production
somewhat lower levels
at
1955.
Canada marked
her
some¬
materials:
aluminum.
of
the
and
basic
our
during
because
caused
year
Commerce
hope will be
we
STEWART
almost
definite
than in
of
confidence that it has
is
by
presidents of two of the larger
automobile
companies
are
quite
this
with
supply of
per
and
the
in
Chamber
1956
what less troublesome in 1956. I re¬
fer particularly to the problems of
and
closer
JAMES
President, The Canadian Bank of Commerce,
Toronto, Ontario, Can.
potentialities of being the best year in our 90-year
history. There were some problems we encountered in
being adequately satisfied.
Statements
STEINKRAUS
the
only
business
U.
to
briefly
by
minor
setbacks.
Cer¬
tainly at these high levels of pro¬
duction
W.
Chairman, Bridgeport Brass Company
119
Dated: New York, New York, January 19,
plus
a year-
and Decem¬
1955.
1956.
AMERICAN
&
FOREIGN
POWER COMPANY INC.
By HENRY B. SARGENT, President
120
120
Continued
from
Our expenditures on new construction to
119
page
ditional
might cause the rate of increase to level
credit
sumer
to
likely to continue at a high level with
Exports seem
emphasis on the commodities most in demand
last year, that is, base metals, iron ore and newsprint.
The buoyancy of the economy in the aggregate should
tend to sustain the weaker sectors, some of which have
recently shown signs of improvement, and if produc¬
tivity and population increase at a rate approximating
that of recent
in
hope for a Gross National
billion.
we may
years
1956
of $26%
excess
SUMMERFIELD
E.
ARTHUR
HON.
S. Postmaster General
U.
10-year period since the end of World War II,
the Post Office Department, total¬
ing nearly $5 billion, have been contributing factors to
the Nation's unbalanced Federal budgets.
These deficit
the yearly deficits of
pperations of the Post Office Depart¬
ment have been largely responsible
for
two
people
and
continue
to
to
if
of
we
present
to have
time
take
and
will
We
money.
increasingly
volume of mail
of about 5%
while
worse,
three
E.
Summerfield
Office Department now faces a
yearly deficit of about $500 million. Nearly $200 million
of this huge sum is the cost of the recently deserved pay
raises and other employee benefits.
Basically, the failure to operate the Post Office De¬
partment on a more nearly break-even basis is due to
the fact that postage rates today are essentially the same
as they were
in 1932. Meanwhile, the cost of nearly
everything the Department buys or uses has more than
doubled, as have most household or business expenses.
That is why we are recommending moderate increases
in postage rates on First, Second, and Third-Class mail
to Congress.
Post
Congress and the American people
ciate the need for reasonable rate increases
so
appre¬
Office Department may improve its services and
facilities and operate on a self-supporting basis as do the
postal establishments of most major nations. Our neigh¬
bor, Canada, for example, has shown losses in only three
of the past 20 years, with an over-all surplus for these
two deicades of $89,523,932.
must
If
these rate increases are granted, we can
complete
job the Post Office Department set out to accomplish
three years ago—provide better service—lower costsreduce the postal deficit—and operate on a break-even
we
ects
President
total
Gas
construction
Electric
and
with
fourth
in
steam-operated
electric
about $245 million.
be
A
start of
plant
Chicago
design of a
180,000-kilowatts capacity
by
1960
for
Pacific Gas
pany.
operate the plant, all the participants will
through the technical information and experi¬
gained.
The designing of this plant is being car¬
ence
ried
here in
on
California, at San Jose, by the General
contractor, and personnel of PG&E
Electric Company, as
and other participants
service
territory
growing population creates
support
such
Life
development,
and
favorable plant sites, good
transportation, abundant low cost
to
We
plan
this
year
Northern
and
Central
during 1955 was the connection
three-millionth customer meter to our lines. As
of
sure
our
to
ex¬
in¬
California.
milestone
A
and all
tensify the company's continuing ef¬
forts to help attract new
industry
Sutherland
R.
fuel, skilled labor
requirements for industrial
pansion.
rate of
of
a
the
mea-
growth, this
event followed installation of our two-millionth customer meter by
only eight
In the past 12 months we have added about
135,000 new gas and electric customers, the best
gain in
any of the postwar years.
years.
Last Aug. 3
Life insurance sales in
but
whether
reached
about
285
18
billion
1954.
billion
kilowatt
a
new
hours,
a
gain
of
about
12%
Sales of gas to customers total
approximately
cubic feet, about 17% greater than in
1954.
The gain in natural
gas sales was influenced
colder than normal weather which
in part by
prevailed
territory during much
of the year.
national
our
in
our
powerful
a
and influential
Frequently it has led
economy.;
automobiles to be introduced
new
somewhat earlier
motor
than
in the third quarter,
Already suppliers to the
usual.
manufacturers are feeling the impact of or¬
tools, materials and components. By mid-year
these should represent a vast volume of business which
car
ders for
will have
The
a
widespread influence
continued
formance
of
over
improvement in
radios
contributes
the country.
and
appearance
the
to
per¬
persistent
More and
and
more
the
family is becoming aware of the ad¬
vantages of having table model sets located in various
high
the
of
not
or
1956
of
we
exceed
can
been
is
in
not
progress
Three
market
high
of
factors
or
of
the
now,
levels
But
of
in
A.
of
has
expect
some
decline.
not
clouds to
some
gener¬
employment
at
high
will prevail in 1956,
forces should be able to
same
as
excellent
year
—
1955.
Opportunties for new investments
should be available at good rates of
return and investment commitments
Taylor
a
large part
for
1956
for
articles
marriage rate
GLENN
plant,
during
and
W.
THOMPSON
Chairman, Arvin Industries, Inc.
whole
a
factors
our
the
are
positive
than
Capital
equipment
1955.
of
a
are
many,
the
for
years
by
the pattern of national
those
who
appliances
than
formation
in
of
wants
1955.
new
be
to
An
ever-in-
families
filled
factories.
by
Most
America's families
have
na¬
important,
to
money
and
they intend to con¬
spend it for those things
which will make for better
Research
before.
Time
to
a
living.
Glenn
W.
Thompson
advanced
and
ing will play
afford
create
the
indicate
tinue
(a) the
establishment
living offer big opportunities for
dinette sets, outdoor furniture
well
as
as
other
many
similar
articles.
While predictions for 1956 are almost unanimously
optimistic, perhaps someone should sound a note of
warning. Prosperity in the new year is by no means
guaranteed.
lulled
is a danger that businessmen may
complacency that could have disap¬
The wise manufacturer in 1956 will
There
into
a
pointing results.
regard it as his primary responsibility to work just as
hard and just as intelligently as he did, say, in 1954.
He will bring out new and improved products of high
quality, he will continue to control costs as he did in
less prosperous times. Above all else he will keep ever¬
lastingly in his mind the fact that the customer is king
and that the buying public must again be wooed and
won
with each new day.
To accomplish this, he will
seek
out
through marketing research, the wants of
American families and will attempt to fill these needs
at prices which will attract and hold customers.
)
i ^ ;
V
;
Banking
profitable
F.
THURBER
Second National
Bank
of
V
Nashua, New Hampshire
concluded
another
constructive
and
year.
The quality of assets is excellent and
deposits are high. Earnings prospects are bright, because
the increasing higher interest rates during the latter
part of 1955 will result in higher
has
earnings for
1956.
Bankers will not be without
lems
in
certain
While
1956.
for
the
prob¬
outlook
^is
levels of loan de¬
mand and higher rates of interest,
competition for savings deposits will
be
greater
and
expenses
higher.
Higher ratios of loans to deposits
will reduce liquidity as will longer
terms and higher ratios of loans to
value on real estate and equipment
high
Lack
mortgages.
been
a
cause
of
of
liquidity; has
during
concern
periods of stress in banking history,
even
to solvent financial institutions.
Any forecast for
banking in
more
was
devote
we
have had high levels of
construction activities
Production
estimated
1956
Ueo.
f.. 1 nurber
of
and
passenger
automobile production,
stock prices.
common
automobiles
during
1955
is
at
7,941,000 units, up from 5,509,000 in 1954.
Intelligent manufacturers forecast a decline of 12% in
sell
new
and
Residential
creasing population and accelerated
they
consequent
continuing
are:
manufacture
small
and
to
ago,
housing starts will be phe¬
nomenal, although due to credit re¬
strictions
they
probably
will
be
tion's
They
production for 1956, which may be greater, due to the
problems of distribution created by huge inventories of
used cars.
Greater price concessions may be necessary
12%
Measured
few
are
expenditures
new
lower
the
1956.
and
new
1955
ex¬
rate
annual
an
in
standards
factors
few.
machinery
and
the first
quarter
pected to be at
higher
home.
the
with
vast
recognize that the boom is
topping out, particularly in fields that have been respon¬
sible for much of the recent prosperity. During 1954 and
Many dependable signs point to further improvement
in business in the United States
during 1956. For the
as
for
the
to
must
President
negative
remains
households; (b) the discovery by millions of
of the pleasures of outdoor or patio living;
(c) the ever-increasing number of working wives who
in order properly to maintain their homes require more
and more appliances for quick and
easy dispatch of
their household chores.
These recent developments in
is
favorable.
nation
portables
Americans
All
have
believing that
already made will fill
investment needs.
The
outlook
1956
year
boom
economy
another
about the
Charles
record
whole
pay
agency
turn
to
even
always,
as
steady
our
;
fully in the boom and there
seen.
ally
i
long time and it
a
of
on
contribute
President, The
high level
year's
The
unreasonable
off
a
the
uncertain.
more
at
last
over
Popularity
insist
having news, entertainment
and education while away from home.
Transistorized
receivers, bearing lower price tags than heretofore,
Virginia,
;v
will start
house.
people
as
GEORGE
Company
breaking total
new
we
all-time peak electric
power demand of 3,788,700 kilowatts.
Our electric en¬
ergy sales and deliveries to others for 1955
amount to
.over
Insurance
Richmond, Va.
markets
have
power and
in
the way to higher and more prosperous plateaus. Today
its plans are all but complete for lines of revolutionary
CHARLES A. TAYLOR
President, The
new
place in our
during 1956.
Our
Com¬
and
be
take
Edison
near
benefit
capita
other
Commonwealth
built
Company is one of a
small group of companies associated in
engineering and
financing the project.
Although Commonwealth will
are
consumption of energy.
We expect further active industrial
be
to
Electric
shared
rapid growth of population, the gen¬
eral advance of business and
rising
,
the
and
mands for natural gas and
electricity
which will result from the continued
we
the past year was the
nuclear-electric power
the detailed
of
Manager,
to
industry long has. been
car
force
be
significant development of
sustained high level
business activity in Northern and Central California
during 1956. We are preparing to serve increased de¬
.
generating unit of 165.000-kilo-
projects
under
construction,
authorized
or
including the associated transmission outlets,
planned,
will
a
development
to meet
now
watts capacity at Station P Steam Plant, San Francisco.
The aggregate cost of these hydroelectric and steam-
oi
to
building
are
leveling
Company is scheduling
confidence
per
We
elements
General
future.
should stimulate radio sales importantly in
367,500 kilowatts of generating capacity, and
license for further development of 258,000
kilowatts on the upper North Fork Feather River.
In
addition) we plan in 1956 to start construction of a
SUTHERLAND
and
new
the
,
ap¬
a
economy.
R.
and the
of
have
we
Pacific Gas and Electric Company
Pacific
we
in progress includes hydroelectric proj¬
the Kings and Feather Rivers which will develop
on
provide the most
efficient service possible to meet the constantly expand¬
NORMAN
Bay Steam Plant
hydroelectric plant in
will place in service a
expect to arise several years from now.
is
dynamic
Morro
4
generating capacity on
new
system.
our
Then the Post Office Department can
our
at
Pit
During 1956
basis.
'
unit
complete
on
the
ing needs of
in
steady demand for home receivers.
Morro
that their
Post
?
1955.
95,000-kilowatt
County.
own
"We believe
to
Thursday, January 19, 1956
products for marketing two, five or ten years
Now, middle-sized and,; in fact, smaller),
manufacturing concerns realize not onjy the desirability
but the absolute necessity of continued and intelligent,)
research. As a result^ irf ? 1956, more millions than ever r>
before will be devoted to this activity. ;.
V"
r; r
/
Our company's operations are in three major indus¬
tries—automotive parts and equipment, metal furniture,
and electronics and small home appliances. The motor
velop
rooms
a
increases at the rate
year.
the
years,
border
Construction
A.
the
The second and more serious prob¬
lem concerns the fiscal plight of the Post Office Dept.
Despite the efficiencies and economies of the past
a
$20,-
a
Bay. j
16'5,000-kilowatt
the
veloping
continue to ignore these needs, which
grow
California-Arizona
the
from
plan to begin
we
Super Inch natural gas main,
our
lines in
our
demands
not
can
,
capacity
proximately this scale each year for at least the next
few years to maintain our reserves and have capacity
to serve the large annual increases in demand now de¬
good
conditions
these
correct
than
r
average American
We
ones
are
J
gas
Bay unit of the same capacity
50,000-kilowatt Humboldt Bay Steam Plant.
mail service.
To
This will bring our con¬
This expansion will increase our
present daily volume of 700 million cubic feet of neural
gas imported from out-of-state by 25%.
The increase
will take place in four stages, beginning with an addi¬
tional 50 million cubic feet a day by Nov. 1, 1956. The
total incraase of 175 million cubic feet of gas a day will
be effected by Jan. 1, 1959. Facilities necessary to carry
out this program will include a total of 150 miles of
34-inch pipeline and an increase in compressor capacity.
In addition we are encouraging drilling in California
by providing a market for newly-discovered natural gas
in our operating territory.
The new Beehive Bend apd
Princeton fields in the Sacramento Valley were con¬
Shasta
plant
modernization
essential
extends
Francisco
San
and
of the Post
Office Department is obsolete
and
inadequate. Many new buildings and
are
which
second
expect.
physical
The
the
provide ad¬
will amount
first
re¬
service they deserve
mail
the
ceive
facilities
Our electric generating capacity now exceeds 4,300,000
kilowatts.
Major additions during 1955 included the
solution if the Ameri¬
are
'
For additional
686,000 expansion of
nected to
problems requiring urgent
attention and
can,
other
and
nearly $130 million in 1956.
$1.6 billion.
the major
Product in
electric
gas,
struction expenditures in 11 postwar years to more
off somewhat.
In the
Financial Chronicle^.*.
The Commercial and
(380)
engineer¬
important role in 1956 than
ever
when only the- industrial giants could
the time, energy and
money to de-
used
cars.
-v
construction
activity will decline from
present high levels because of higher material costs,
higher interest costs and reduced amounts of long-term
mortgage money. However, high levels of financing will
continue for construction of factories, schools, hospitals
and roads, as well as for consumer credit and inventory
financing.
High levels of common stock prices are due for a
set-back.
The
Dow-Jones Industrial
Average, which
was at $255.49 in Sept.
14, 1953, reached its all-time high
during the last few days of 1955 and closed Dec. 30, 1955
at $488.40.
In addition to the high price level, the
comparison of common stock yields to corporate bond
yields indicates that a change may be in the offing. A
drop in common stock prices somewhat along the lines
experienced during 1937 seems indicated.
^
Election year will generate wider fluctuations in
busi-
Volume 183
Number 5460
The Commercial and Financial Chronicle
.
.
.
ness
confidence and perhaps business activity, but of
greater importance to the Outlook for 1956 are the credit
and financial
fleeted in balances carried with
spondents in livestock feeding
policies of the Federal Reserve System and
Whereas, during 1954, policies were
increasing the money supply to combat defla¬
tion, the problem during 1955 has been to restrict the:
way,
aimed at
of
credit
continuing
credit
in
order
emphasis
because
to
will
demands
inflation.
prevent
be
for
For
tight
open
the
use
1955
comes
to
of
Saint
a
Joseph,
Northwest
serves
a
said
railroads
Mo.
the
Missouri, Southwest Iowa,
half of Kansas and the
In
analysis
our
is
outlook
for
1956
is
exception
one
livestock
But
we
months
the
industry.
"within
Advisory
put
it
is
While
in
ago.-
today,
and
drought
coal
solved.
has
been
yields were better than
we expected.
In the livestock indus¬
try, conditions are entirely different
due to over-production in both pork
faction, shippers' needs and general
this
so.
public
acceptance
increasing
needs.
Courtesy, improved and de¬
and
we
crop
beef.
carry
As
y©u
excess
of
doubt
no
livestock
Walter J.
and
the
Milton Tootle
the
our
know,
Revolutionary
bank
ment
prices
feeder
is
lucky
to
are
types
of lightweight
indication
one
of
railroad
recognized
are
rails
with the original cost of his livestock.
or
soon
will be.
largest freight
.In analyzing this condition in the over-production of
livestock, the outlook for 1956 is discouraging. It is re-
meet
the
car
The railroads
acquisition
now
are
in
expanding volume of business.
30
LOS
ANGELES
STOCK EXCHANGE
Elects Officers
WASHINGTON, D. C.—District
Securities
nounces
Dealers,
Inc.
has
the
an¬
1899
SERVING AMERICA
AND ITS
GREATEST
1
than
are
said
to
this
created
by
of:
for
area
At
the expiration
F.
Grainger
decline."
it
of
that
their
on
Time
needed
and
for
steel,
world
the
greater
Spurred
to
way
part
filling
Odd
lot
executions
elected
on
No
transfer
state
tax
on
issues
were
1956, the following
'
618
Los
So.
Spring St.
or
sales
The
District
No.
elected:
Scott
&
Stringfellow,
represented
Kreeger
Richmond,
&
Hewitt,
succeeding
Arthur
as
L.
Davenport
Baney, E. R. Jones & Co., Balti¬
more.
L.
Victor
Seested
was
(Special to The Financial Chronicle)
CINCINNATI, Ohio—Raymond
T. Timmerman is
&
people,
Preferential commissions
to
approved states
mew
and
Cincinnati
viously
&
with
Nelson
Company.
Progress in
businesses and
wheel steadily our way and we
requirements, always
50 member firms
power
available for prompt
•
on
new
industries continue
to
continue to meet all their electric
time with plenty. Our 10
gains
well tell the story:
quotations and
1955
1945
year
Increase
executions.
$44,045,600
-
*
>
$17,895,800
$26,149,800
314,363
195,905
118,458
19.0
Operating Revenues.
bill
13.3
5.7
/;
Customers
Served
% Net Income to Gross
t
*
Remember, after
the New
Use the Los Angeles
York Close,
Stock Exchange
Electric
.
HOURS
TRADING TIME
—
Plant
.
OFFERING AN ADDITIONAL
TWO
Revenues
in
Service.. $202,360,000
$70,494,000 $313,866,000
OKLAHOMA GAS AND ELECTRIC COMPANY
47 consecutive years
321
with W. D.
Dixie Terminal
members of the New
Building,
York
now
Co.,
Growing Great Southwest
New
•
of paying
North Harvey,
common
stock dividends
Oklahoma City 1, Oklahoma
DONALD S.
KENNEDY, President
&
With W. D. Gradison
Gradison
Muldowney takes office
the Board d Gov¬
B.
Munford,
Co., Richmond, Va.
Vice-Chairman, Joseph P. KreeJones,
on
of this Association by Bev¬
ernors
Virginia.
ger,
of
in tax free states
Angeles 14, California
122
page
Secretary of the Commit¬
District
erley
Chairman. Joseph J. Muldowney,
OG&E Power Helps to Pace
transferable
the
tee.
prices
•
progress
,
based
national round lot
new
effectively
Stock
changes. Mr. Timmerman
of the
electric
desire,
more
Over 400 local and
on
of
this
by
Continued
11,
Chairman
Marburg,
proved
markets,
national issues traded
•
has
before their indispensable role in the nation's
meeting of the Committee
a
officers
term
a
total
11
comprises the
Columbia,
and
the
Mason, Lynchburg, Va., and W. States of Maryland, Virginia, West
Olin Nisbet, Jr., Interstate Secu¬ Virginia and North Carolina.
rities Corp., Charlotte, N. C.
The members of this District are
Mr.
fill the vacancies
the
of
the way up, and with constantly
progress.
Washington, D. C.
terms
•
been
ever
held Jan.
in
one-fourth
to
years
the election of J. Wilmer
of three years to
good,
economy.
Butler, Baker, Watts & Co., Balti¬
more, Md,; Robert B. Dixon, McDaniel Lewis & Co., Greensboro,
N. C.; Ludwell A. Strader, Strader, Taylor & Co., Inc., Lynch¬
burg, Va., and J. Nathan McCarley, Jr., McCarley & Co., Asheville, N. C., to the District Com¬
industry
GROWTH AREA
as
foreseeable.
desire
railroads
the
mittee, representing the securities
FOUNDED
quantities
Alex. Brown & Sons, Baltimore,
Md.; Glenn E. Anderson, Carolina
Securities Corp., Raleigh, N. C.;
Edwin B.. Horner, Scott, Horner &
No. 11 of the National Association
of
coal's
on
"Piggy-back¬
NASD District No. 11
*
in
are
is
engaged in the
program
reached
Now coal is
chemical production
It
on
industry.
almost
heights
At least
newly
constitutes
power,
equip¬
passenger
progress.
five different types of such trains are
out
come
satis¬
community relations are industry by-words today.
for
paper
service and
pendable passenger and freight schedules and advanced
correspondents
being received are
steadily downward and in instances
many
Tuohy
Customer
toward
probably better.
conditions the past summer were se¬
vere,
bodies
changed' thinking is in¬
tonnage the railroads carry, coal's resurgence in 1955 was
particularly gratifying. Production was up 20%, export
up 100% from the year before, and the line continues
upward. One year ago this message stated, "The bottom
exist for the railroads,
challenge has been accepted,
problem recognized is half
a
regulatory
the
Since
are;
Problems
but the
the
atmosphere in the activities
new
a
government
and the outlook is for 1956 to be at least
way,
and
eight
things
of
Chesapeake and Ohio, 1955 produced new
highs in earnings, operating revehues and financial po¬
sition. Net income per share at
$7.25 was up 45% from
the year before.
Although merchandise traffic revenues^
were a
record, coal revenues, reflecting a one-third in¬
crease in tonnage
moved, contributed 54% of total oper¬
ating revenues. It was a record year in almost every
different.
promising with
that
aptly
contributing is
attitudes
For
generation,"
one
a
common carriers.
This
deed welcomed by the railroad
Transport Policy and
on
so
and
good
and
occurred
of
as
the rail
taken
by the
"transportation
Eisenhower's
Organization
area,
this
of
business
which
span
Committee
half of Nebraska.
believe
short
President
as
not
was
during the
revolution"
good portion of the Northern
Southern
and
that full advantage of their op¬
portunities
President, The Tootle National Bank,
Our bank
TUOHY
bright.
TOOTLE
labor
friendly team have produced the.
highest standard of living the world has ever known
and the most solid
democracy. That shoulder-to-shoulder
attitude can help advance
progressive railroading.
satisfactory close, the outlook for
Strengthened by better earnings,
the industry is embarked on a brand new period of
prog¬
ress that may well
outstrip everything accomplished so
laboriously in the past. It might be
market operations.
MILTON
and
Also
As
the railroads is
trailer by railroad flat
signs of dynamic progress.
are
Manage¬
.
President, The Chesapeake and Ohio Railway
Company
money
or
v
and other innovations
Understanding and cooperation have grown between
the rail brotherhoods ahd managements in
working proj¬
ects to advance the industry's
general welfare.
the livestock situation above mentioned could be
WALTER J.
on restricting the use of
financing will exceed the
change in the rediscount rate
1956 if, in some
121
the transporting of truck
ing,
car,
ment
market is in prospect. The Federal
will provide some additional funds as
they are necessary. A reduction in member bank re¬
serve requirements would be more effective and reason¬
a
corre¬
corrected.
Reserve System
able than
bank
our
1956
supply of available funds.
A very
by
us
areas.
We would feel quite optimistic about
the Administration.
use
(381)
Ex¬
was pre¬
Browning
122
The Commercial and Financial Chronicle
(382)
Continued
from
taking presents
121
page
when
business
of
trend
determined
be
Federal
in
1956
likely to
more
seems
the policies and practices of the
by the predictions and plans of
There is no
denying that the business
boom
has
reached
a
dangerously
than
businessmen.
high level. By and large industries
operating at capacity, shortages
of manpower and of basic raw ma¬
terials
are
appearing,
gray
and
black markets are developing and
the resultant advance since last July
automatically, without promotional effort
.
increased
of
use
in the Labor Bureau's Index of com¬
products
and foods is the most ominous infla¬
modities
services.
our
•
panies for increased
,
Raymond H. Trott
nized
boom.
the
this situation
has been acting to
been so fearful of
year
it
However,
recog¬
has
damaging confidence, of "upsetting the apple cart," that
it has been very gentle in administering its restrictions.
The
of
rediscount
rate
has
been
in
advanced
small
steps
V\% and the banks have been supplied with reserves
at times of seasonal needs in order to prevent any
shock
The
:
the
to
is
Federal
whether
We
have
sent the
sort of opportunities for
same
1955.
present in
were
planning
further
of
more
huge
the
capital
scarce
NORFLEET TURNER
The outlook for the
The
Obviously the Federal Reserve Board
pointing to
its
more
cycle to
after
be
end.
an
mid-year
gentle
or
Whether the end will
or
sharp
whether
the
come
before
questions which cannot
are
or
subsequent decline will
now
be
answered.
G.
W. VAN
At
Wisconsin
Power
Company
Electric Power Company,
we
ward to 1956 with reasonable confidence that
tions will
result
in
the
kind
same
of
good
balance
sound
heavily-populated
of
Norfleet
point where they
Substantial
additions
left to be desired in the matter of
ment
tax-wise
on
the
the
extension
to decrease
was
of
our
was
highlighted
in
steam-electric
generating
plants.
Even before the third Oak Creek unit
was completed,
began on a fourth unit which is expected to be
placed in service during the winter of 1957. When com¬
work
pleted, the Oak Creek plant will have a capability of
generating in excess of 500,000 kilowatts and will be the
largest in Wisconsin.
Our current
in
three-year construction program is only
larger 10-year program which extends through
contemplates an increase of approximately 90%
electrical
load
requirements.
We
are
now
in
the
of making a careful study of the great number of
problems involved in practically doubling the capacity
process
of
our
present system of
mission
within
a
and
power
distribution
10-year period.
lines
expanding
an
employment should
class.
of
In
increased
air
maturity of
utilization
gain
the
of
northern
plants, substations, trans¬
and equipment—and all
We realize that such
an
under-
in
load
in
in
ational
effect in
of
earn
the
where,
atomic
All classes of service
a
result
in
the lighting in most homes obsolete.
Light for
Living is the best, most attractive, and cheapest form
of home decorating.
It is also the most rewarding in
pleasure and safety.
Watch the new ; ideas for home
lighting in 1956.
Utility public relations will show new vitality in 1956.
people basically uphold the principle of
as distinguished from government
operation of the utility business. Tne record of govern¬
ment in the power business has not been
tions programs.
The
an
ad¬
Edwin
will
Vennard
become
Colonel
will
join
Managing
Bennion.
.
.
spend
Edison
this
reason
some
to balance the air
This device
in
determining
for
user
Director
„
more
Electric
on
distribution
Institute
June
year
'
WAMPLER
record
sales
industry
in
record-breaking
^
will be established by the
year
with
1956
total
a
retail
This would be the seventh
By way of compari¬
year.
biggest percentage gain in 1956 will
again occur in the residential field.
of
central
systems
which
installations
50,000
75,000 in
retail
air
in
1954 and
1953
to
125,000 in
going into homes in 1956
value
of
about
$%
billion.
coming 12 months
undoubtedly be the
use
of the
year
gen¬
Cloud
of residential air condition¬
Wampler
■.
.
I
on
upon
March
1
retirement
climb
will
further
estimate that during 1957
units, that by 1960
we
to
270,000
million
a
and
of
a year,
and by 1985 installations would
1,200,000
annually with
about $1.8 billion.
a
total
sales
volume
of
Other Markets Also Gaining
The air conditioning of
department stores and shopping
gains during the past
due in part to the increasingly intense competition
centers
year,
has
shown
the
between
new
spectacular
suburban
shopping
centers
and
the
traditional downtown stores.
Air
conditioning of older office structures is proceed¬
a pace which is not likely to slacken for years to
At
the
same
time every major
new
building
being equipped with complete central air
conditioning, offering a continuing stimulus to improve
existing office space.
come.
erected
is
Another
provement
following
will
hopeful
residential systems would be purchased at a rate exceed¬
Vennard
earnings to
special consideration
pump
,
a
son, the industry's 1955 retail sales
is at $2.9 billion.
As in the past three years, the
ing half
as
some
as
the face of the earth.
on
Looking further ahead,
of the heat pump.
For this reason,
given to the heat
people
conditioning
ing at
use
1956
CLOUD
sales
For
so
to
.
areas.
load.
'
look
Chairman and President, Carrier Corporation
reach
utilities
Utilities
of chal¬
lenge. They intend to meet the challenge by continuing
to help Americans maintain the highest standard of living
ing.,
the rate.
*Mr.
utilities
great breakthrough, leading to
balanced load which results in better
Electric
good.
beginning to realize that they have a responsibility
people to keep them informed on such matters.
This will probably be reflected in 1956's public rela¬
to the
eral
winter peak to
utility.
be
operations
company
will
the
provides wintertime heating in addition to year-round
air conditioning.
Customers using the heat pump have
may
complete without ref¬
new
made
And I believe the
conditioning.
more
1956 is
concepts in home lighting.
Home lighting developments in the last few years have
a
im¬
striving to sell winter loads
the
the
of
some
The total
Companies
a
to
should be about 200,000 systems with
of
in
southern
more
More
1955.
In¬
because
year-round
There will be
company
1956.
generating facilities will be nuclear
No mention of sales in
about
utilities may have to seek rate increases in order to meet
the cost of serving the air conditioning load.
are
of
best
dynamic force in his life.
more
from
will
more
a
in
the
condition the entire home have risen
peak.
than
re-examination
Utility appliance promotion efforts in 1956 will be
guided by a policy of helping the customer to choose
t e electrical equipment best suited to help him get the
most value from electricity and to make electric living
Sales
the
companies, taxing their capacities to the
Because it is a seasonal load, it costs more to
limit.
new
volume of about $3.2 billion.
conditioning will continue to grow in popularity.
Already giving some power companies some concern,
the huge demand for power in the summertime will hit
and
a
plants.
power
consecutive
Air
more
involve
planning stage, and it is estimated that by
1965 10% of all
Another
air
a
all
plants will be completed
power
the
in
we
power
factor
some
These
met??ods, aimed toward producing
operating results for the least money.
According to present plans, some electric
respectable
a
conditioning, the in¬
generally is experiencing a
summer
studies.
operating
and
more
industrial
but will have
areas
gradual shift from
a
use
conditioning will
dustry
accelerated
method of depreciation accrual.
new
investment.
automation
summertime
Because
of
and
economy
result
use of
electricity.
factor, the index of
load
provement
verse
advantage
available
by the taxing
Some unanswered questions, which bothered
utility management and state regulatory commis¬
have been resolved to the point where it has
become advantageous for the
utility to consider this
rise in the
a
service
a
the
reason
company, will tend to level out.
Derzee
take
made
sions,
of any
population,
percentage
creased
watts.
1964 and
beyond
its stockholders'
on
capacity
With the completion of a third
unit at Oak Creek, the
dependable generating capacity of the Wisconsin Electric
Power Company system has now reached
1,252,610 kilo¬
part of
long-term
to increase
full
Annual
Gould W. Van
recently
bot.i
air
cause
a
seven
of
demand for bank services to the point
service,
third 120,000 kilowatt generating unit
placed in service at Oak Creek, the newest and most
modern
and
residential
gross
depreciation
will
are
credits, particularly in
where the tendency has been
materially the amount of down payment re¬
growing
more
ap¬
program
reserves
{
credit field
consumer
largest
three-year
construction
additional
trial—will experience gains, with the
distribution facilities needed to
supply the
continually increasing service demands of well over half
a million electric customers.
1955
favorable treat¬
more
of
Many bankers feel that caution should be exercised
mission and
Our
building
—residential, commercial and indus¬
$100,000,000
construction
program
designed to improve and augment the generating, trans¬
December when
the
has maintained in the recent past.
electric, gas and
plants. We made a
our current
in
against possible losses.
in
investment.
on
The American
history.
aside, yet much is
business, in the history of the electric utility industry.
Growth is going to continue at almost the same rate it
our
to
heating utility
set
in
President, Middle West Service Company
demon¬
for
have been
reserves
better able to
are
before
ever
The year 1956 is going to be the
biggest year, in gross
Wisconsin and are backing our
judgment with large expenditures to
meet
our
continuing and growing
service obligations.
Our confidence
$40,000,000
than
EDWIN VENNARD*
of
proximately
customers
of
manufacturing activity.
good start
Turner
their
serve
market; they
happy compromise between safety of princi¬
a
utilities
erence
re¬
stitutions throughout the nation to a
farms,
spent
the
Consolidations, the sale of addi¬
capital and the plowing back
of good earnings have strengthened
the capital structure of banking in¬
return
We have great faith in the future
More
operation
tional
steady
industrial
in the years ahead was well
strated in 1955 when we
of
tend
out
with
and
centers with their broad diversifica¬
tion
level
higher rates should
sult in better profits.
number of
a
cost
which
marked
between
small communities and
more
least
hope, the profession of banking will
we
area
banking should
at
or
opera¬
that has always characterized the economy
serve—an
in
increasing
ever
continued
look for¬
the
area
reduce
to
our
progress
with
The fuither development of
the obligation.
DERZEE
Electric
rates,
automation
A
Wisconsin
represent
the
of
year.
of 1956.
quired
President,
months
the full impact of
which has not yet been felt, but will
manifest itself in the early months
would like to
have to adopt
six
Larger loan demand has increased
restrictive
It may succeed or it may
first
the
interest
materials.
rugged tactics to accomplish its purpose; but I think
that sooner or later it will
bring the current inflationary
biggest factor in utility opera¬
relatively steady. Utility stocks and
remain
pal and return
are
attain
policy until the dangers of an
inflationary boom have passed. Federal stopped the
boom in 1953 by adopting drastic
methods; it is trying
to stop it this time without
sending long Treasury bonds
below 90.
least
at
expenditures postponed to a time when they
might be needed to support declining production. Con¬
sequently, there seems no reason to believe that it will
reverse
generally is brisk with indica¬
continuation of this trend through
a
these
see
banking business in 1956 is good.
loans
for
demand
tions
expenditures
raw
tion, will
operating economies in 1956.
Pooling, mentioned above, is one of these. Others are
automation, responsibility accounting, and detailed oper¬
President, The First National Bank of Memphis, Tenn.
dential buiiding industries, and hugh backlogs in air¬
craft, freight car, business machines, machine tools, and
other industries may offset any weakening in automo¬
biles and building. Confidence is still high and business¬
which will call for
efficiency. This trend will be ben¬
Utilities will seek further
goal with such gentle tactics. There are as yet few
signs of a slowing down in the expansion of industrial
production except perhaps in the automobile and resi¬
are
increased business
We intend to take advantage
of them.
its
men
1956 will not pre¬
to believe that
reason
no
serious
can
gen¬
com¬
eficial both to the utilities and the customers
they serve."
The cost of money, tie
authorities.
new
question
pooling of
neighboring
old-fashioned home wiring systems are literally
bursting at the seams.
many
economy.
present
be
can
bonds have found ready
acceptance in the
in
dangers
a
has
Reserve
wages
problem of overcoming the bottleneck caused by inade¬
quate wiring in too many of today's homes. With the
average home using more than twice as much electricity
as
10 years ago, and looking ahead to using twice as
much again 10 years from now, it is no wonder that
as
Federal
the
for
and
curb
and
Reserve
Treasury.
The
problems to which we shall continue to
attention in the year ahead is the
the
and
More electric companies will consider
considerable
deyote
"accord"
the
Federal
the
between
nearly
ended
with
ago
years
the
inflation
War
Korean
the
since
development
tionary
five
farm
than
other
of
The cost of fuel
Operating efficiencies may offset this
partially, but not entirely. Thus there is a slightly less
favorable operating climate in
sight for the utility.
eration and transmission facilities with
are
One
Thursday, January 19, 1956
expected to rise.
.
.
.
In
part.
We look forward, in 1956, to joining other segments of
the electrical industry in a campaign designed to show
people how they can "Live better
electrically." We
intend to support our growth in physical facilities by
devoting money and emphasis to the job of promoting
our
on
equipment in 1956.
.
recent years, state
commissions, in setting utility
rates, have given increasing consideration to the present
value of the utility's investment. This
healthy tendency
will probably continue.
>.
that
by
Reserve
to
up
We realize, too, that there is no good reason to believe
increased business of such proportions will come
Hospital Trust Company,
Providence, R. I.
The
years ago
facilities
present size.
our
H. TROTT
RAYMOND
President, Rhode Island
problems not present 10
many
faced the task of doubling our
we
.
buildings.
due to show substantial early im¬
is the air conditioning of existing hotels,
the same competitive pattern as in office
And the industrial plant market—stimulated
market
by automation, which has important connotations for air
conditioning—offers the industry its greatest single longrange
potential
next
to
that
of
homes.
Virtually
all
Volume 183
Number 5460
.,.
The Commercial and Financial Chronicle
plants employing extensive automation will require,air
conditioning to assist in maintaining proper operation
of the complicated machines, as well as to provide for
the comfort and efficiency of employees.
Conditioner
Room Air
The
will
volume
retail
total
of
air
room
Outlook
in
1956
around
1,450,000 units valued at about $435
million as against 1,400.000 conditioners sold
during "the
year just closed.
The increase this past year from the
950,0C0 units marketed in 1954 was due in large measure
the
to
early hot
combined
with
in
summer
drastic
of
areas
some
fying growth since International entered it in 1951, and
it has fine indications for
price reductions by
the
nation
firms
many
to clean cut overstocked shelves.
television
as a vehicle for institutional purposes is al¬
ready well underway. A number of firms have found
that it is good business to link their names with highquality entertainment, informational or cultural pro¬
grams reaching into millions of homes. At NBC we are
drawing up plans for a number of new shows designed
to create public response to the sponsor not only through
the commercial but by association throughout with a
program of distinction, prestige and reliability. We be¬
lieve that this kind of programming will be needed
increasingly in an expanding economy 'which provides
higher incomes for all and leads in turn to a more
sophisticated, more discriminating public.
-
successful future.
an even more
The
outlook appears equally bright for monosodium
glutamate, the seasoning International produces from a
by-product of the sugar beet industry in California and
markets
conditioners
throughout
the
world
under
the
trade
name
Ac'cent.
This pure vegetable product with its unique
property of intensifying tee natural flavor of foods has
attained
widespread acceptance from homemakers, chefs
and food processors
in
short
a
span
of
Besides its
years.
the home to make foods taste better,
in
use
it has im¬
portant applications in restaurant and institutional food
service
t'~e
in
and
canning and freezing of foods both
commercially and at home.
ERNEST T. WEIR
■
; With room unit inventories reduced from about 700,000
at the end of 1954 to some
3^0,000 at t
in
come—even
this
competitive
highly
to
year
portion
of
WEAVER, Jr.
Television
is
heading into its greatest
search at NBC indicates that in
breakdown
of
1956
our
estimate of $3.2
billion
in
total retail salt s for the air conditioning industry follows:
Room air conditioners,
$435,000,000; complete home air
conditioning, $312,000,000; commercial packaged air con¬
ditioning, $189,009,000; built-up air conditioning and
refrigeration systems of all sizes, $1,043,000,000; residen¬
tial forced air furnace installations adaptable to air con¬
ditioning,
$638,000,000;
$565,002,000.
other,
alT
including
service,
The spectacular gains
will
in complete home air condition¬
profound changes in the residential
bring
.
heating business. The furnace industry already is being
welded tightly into that of air conditioning.
The key
phrase in furnace installations over the next few years
Chairman, National Steel
may
than
well
get
larger
a
share
of
stand
come
television,
a
powerful
in
Clients
in durable
consumer
the
in
will
dimensional
this
be-
food
field,
goods, in travel,
clothing, in home furnishings, are
coming to recognize that only color
television can bring their products
to the buyer with full reality—with
sight, sound, motion, color and the
third
for
effect
||Hr
sustained
S|
make
■■PFn'
The
J||f
MS§>,
need
advertisers
convertibility/' Heating is becoming, as it
be, simply one phase of year-round air condi¬
tioning.
used
The
pect
impact of air conditioning techniques will be felt
in the design cf furnaces and the kinds of heating equip¬
used, and in dealer experience and installation
The dealer who currently specializes only in
ment
have
television.
never
We
at
before
NBC
months
ahead
and
to
it
a
HHHkiiilBHH
s. L.
,
we
,
than
.
.
have
begun
,
a
expand our color production facilities in
Hollywood and Chicago. When this program
completed, we will be able to double our present
color programming—from 40 to 80 hours a month.
New York,
heating will find it necessary to become a well-rounded
expert in complete air conditioning, or else he will find
his business diminishing instead of increasing over the
is
to come.
years
people have not been concerned with what their
Most
heating unit looks like, and many den't even know its
brand name.
But the installation of air conditioning
in the home will be
a
source
of considerable family pride
expect t e owner of such a system
to be fully aware of its attractiveness,
its carefully
engineered and installed comfort features and t;.e .reliand I believe you can
ability cf its manufacturer.
LOUIS
^
national
The
of
production
nonmetallic
minerals
■JPc--
0mmI
fvJi
\'jR&
?
(Fatal
PP%;* «***&? M|
P°tas}l
distribution group, including salesmen, jobbers,
tors and
dealers, is brought together for a
momentum
of the
all
areas
T.
which
of
companies and
in a pro¬
gram scheduled for completion in mid-1959 which will
raise our company's annual steelmaking capacity from
6,000,000 to 7,000,000 tons. This program, plus other
additions
and
improvements at four of our plants,
will require an expenditure of at least $200,000,000 in
this period.
distribu¬
lull-scale
All of
increase
in capacity will be made at our
locations the Weir-ton Steel Com¬
pany at Weirton, West Virginia and the Great Lakes
Steel Corporation at Detroit, Michigan. Because of the
ability to tie in with existing facilities, expansion can
be
accomplished in this manner both more quickly
and at substantially
lower cost.
All of the steel companies which have announced
the
present steelmaking
be increasingly in demand
fast-paced competition in almost
-
Finally, institutional advertising will account for an
increasing share of television time. The trend toward
Continued
on
page
IptcrMii
MmM
r~
t/#J'mwMmK^mTW
CREEK (Power Plant
equally necessary to
ar3
usecj
^e
Ware
anfj
feccj
^;oe
World's
Luiigry
growjng population.
-•
Florida, where International oper¬
phosphate mines, and North Africa account
for the largest production of phosphate today. There-arc
also phosphate deposits on some islands in the Pacific.
Little is known about phosphate reserves behind t .e
Iron Cuitain, but Western Europe must import all its
phosphate..
-
United
Tre
States
produces potash
for domestic
use
and for export to nearby countries. Our principal source
of potash is in New Mexico, where International and
other
producers
it
mine
in
extensive
operations.
in
used
potash
is
,
commercial
used
as
plant
foods.
About
applications
for
of
our
.
growing
consumption
of
commercial
tilizer in Wisconsin and Iowa indicates the call for
plant foods that will
come
from other
fer¬
more
areas as
farmlands become depleted.
Feldspar
2
.
Nk.
3
Number
completed
«mwDecember, 1955
Number
/Unit
Jwffitik
scheduled
completion: 1957
jdsM
"5^^
^
Jjg
^niig»^YfwW| wfim
tSBBW
Wr
wm\
and
other
increasing demand.
industrial
There
are
minerals
over
1,000
are
uses
also
in
for the
than 30 industrial minerals International produces,
and the list of
uses
is
growing.
tetel;
^
>»*•:*!•
'
WM,
are finding
phosphate and
plant foods in this country
van be read in their history in Europe.
Because its lands
have been -tilled longer, Europe is considerably more
advanced than we are in the use of plant foods. In this
more
Unit
%r/^^
However,
The future of commercial
more
Number
completed
November,
,
93%
chemical.
and other industrial users
agricu'tural
an
increasing numbers of
potassium chemicals.
the
1
of the phosphate produced in this country
chemical processors
country,
Number
completed
September. "S3.
underground
.
About 85%
Unit
Unit
International has mines
throughout this country and in Canada for the production
Unit No. 3 is
on
the job
Power resources of system were increased
Power Company the Wisconsin Electric
in 1955 when
a
third 120,000 kilowatt gen¬
placed in service at Oak
Creek. Work has begun on a fourth unit...
scheduled for completion during the winter
of 1957. This will bring the capacity of the
plant to 480,000 kilowatts — making it the
largest in the state.
Expansion at Oak Creek is part of a longerating unit
was
...
No. 4 is
range
program
on
the
way
to improve the generating,
transmission and distribution facilities need¬
ed to meet
continually increasing demands
in this
of diversified activity and stable
area
growth.
Completion of the third unit at Oak Creek
increases the dependable generating capacity
of our system's 7 steam plants and 18 hy¬
droelectric plants to a total of 1,252,610
kilowatts,
of
feldspar, silica, mica, aplite, nepheline syenite, bentonite, fireclay, foundry bonding clays and other indus¬
trial minerals. This field of operations has shown grati¬
WISCONSIN
ELECTRIC
Weir
it is now.
three
ates
and
■
Ernest
world, and increasing amounts fnust
tmfflmmmAm mm
is
HHHHH
National Steel Corporation is one of the
campaign is main¬
of the economy.
by
may
will account for 1,000,000 tons of the increase
merchandising to
this year to meet heavy,
we
production in other parts of the
crop
graft/
industry,
American farmers are not J^Ssing
nearly as much potash and phosphate
on their lands as cculd be used/profitably for more efficient crop/production. Each year, however, shows
successively larger use of these/two
essential foo:s for plants. Phosphate
anc*
wJSm
Louis
by
applies such electronic techniques as closed-circuit
use of portable kinescope projectors
merchandising. The power and scope of
electronics are used to carry the full impact of the
advertising campaign throughout the distribution chain.
With a
closed-circuit telecast, an entire nation-wide
national Minerals & Chemical 4por-
minerals
|^H
Jt'4'
.
developed
to the needs of
The
diminished
not
s^an^al growt.i in the nonmetallic
I
•
Jgjjf
selling
television and the
electronic
is
a
Wmtm
:
-
of
is
industry recognizes the necessity for greater
capacity and is responding to it. Within
recent months, programs have been announced by a
number of steel companies which will result, in the
aggregate adciition of close to 10,000,000 tons of new
ingot capacity over the next few years.
by the use of portable kinescope projectors for
periodic showings to smaller groups.
We expect our
the nonmetallics by industry and agriculture.
1956, consequently, should see'Sub-
♦
field
new
the
steelmaking
tained
rate twice that of the metallic minerals.
This reflects the increasing recognition of the valde of
at
This
and
The steel
/
NBC
orientation.
WARE
President, International Minerals & Chemical Cd*p.
growing
;
"Electronic merchandising," will likewise bring in new
advertisers.
.
1955
mand for steel will be at lower levels
Weaver, Jr.
to
program
practices.
of
1956 emphasizes the
expansion of our coun-
for
for the
that in the future
ex-
meet
vir/Afl
■
And this
the fact
expect, as
normal thing, periods when the de-
need
increased demand for color
an
the
in
who
should
of the peak years in
try's steelmaking capacity.
only
color television can give. The sheer
selling power of color will attract
si ould
one
experience
prospect
that
will be "easy
which
levels
at
1956
,
steel production.
J||B|
4
steel
...
1956, will
from ad-
support
vertisers.
re¬
revenue
reasons
-'•.■■"V'.'
Corporation
industry outlook in 1956 is for a year of
good operations.
■..>The high demand for steel which held consistently
through 1955 is certain to continue through the first
quarter of 1956 and most probably
through the second quarter as well, '■■■■which means that the steel industry
will be operating at capacity through
the first six months.
In my opinion,
operations in the second half will be
,
which
medium
mass
attract
all others.
from
out
Color
Our
year.
advertising
other national medium. The
will be manifold, but three
any
growth
The
1956 network television
in
Furnace Industry Trend
ing
L.
Chairman, National Broadcasting Company
^
the
industry.
A
SYLVESTER
close of 1955, it
:e
logical to anticipate firmer prices in t;e
seems
123
(383)
POWER
COMPANY
SYSTEM
124
The Commercial and Financial Chronicle
124
Continued from page
tions
capacity through addi¬
that the
is near the end of its ability
industry as a whole
steel
to
the
of
service
lem
territory
assures
proportion to the need for
critical problem that the
industry has faced in its entire history. And, although
the physical side of the problem is not to be minimized,
the hardest question it poses to steel executives is:
"How do we get the money that we must have to
the
do
the
Part
of
in
the past year.
The result was that the backlog for
the
entire railroad equipment in¬
However,
pared with 30,000 at the end of 1954.
The tremendous 1955 order volume,
loans and equity financing.
it would be most unsound, if not impossible,
of
form
There is only one
the net earnings of
to get
available
representing an expenditure of $1.3
billion, is sixth largest of all the
A. Williams
R.
since 1910. It is a
effort on the part of the
years
all of the money in this way.
other
steel
substantial
future steel expansion. The present
part of the cost of
of
entirely in¬
the steel industry is
in
earnings
adequate to meet this requirement.
Furthermore,
substantial part of net earnings
very
a
earnings
since this part must be expended for replacement of
existing plant and facilities and therefore is not avail¬
able for new capacity. The reason for this, and it applies
as
considered true
be
cannot
reported
now
steel company, is that the amounts set
to every
aside for
the
and anticipated future cost of replacing them.
depreciation of existing facilities are much less than
present cost
It
obvious that
is
incomes
companies must have larger
steel
of present capacity and also increase
size and efficiency
Except for a
capacity in line with the country's needs.
of steel companies
income
the
fraction,
negligible
also
from
the
sale
products,
their
of
but of the country
view is
thing in the
same manner
expansion
as
keep
are
the period prior to late
will
1956
with replacement needs and the rising volume
Approximately 70,000 freight
steel
current
the
of
have hampered
shortage
Standard Railway in the same way as
they have other
fabricators for the freight car industry,
namely, reduced
schedules
work
is
and
Until the steel com¬
sales.
lower
panies are able to provide sufficient quantities of steel
inooming orders, the freight car builders
needed to meet
only
on
plans
will continue to be subject to restricted operations and
Standard
freight car shortages.
its position
maintaining
is
Railway
of
But through pursuit, of cost
higher operating costs.
and
been able to
To
assure
American
on
sales
the company has
efforts,
protect adequate gross margins.
posit entirely under water.
Exploratory drilling established the existence of an¬
deposit—Block 18 of Humble Oil and Refining
Co.—some
profit levels based
higher production and
Standard Railway has launched an aggressive
program for
diversification of its operations. A research
development
department
has
been
organized
and
charged with the responsibility of creative experimental
work
established lines
on
services.
and
increased
With
well
as
as
new
availability
products and
of steel
supplies
tangible results from the diversification program,
years
many
of high level and profitable operations are
anticipated.
miles
posit have not
There
as
salt
WATSON
Executive Vice-President and General Manager
Southwestern
Public
Service
States
r
Company
Mexico,
Oklahoma
changed
.
from
an
and
Kansas
area
once
highs in
United
1955 in keeping with the
activity.
Estimated output of sulphur from
6,900,000 long tons, or 250,000 tons
more
decade.
The 45,000 square miles that we serve in
new
Texas, New
tion
than 1954.
amounted
sources
was
an
estimated
the
in
tons
com¬
previous
year,
and
in
10%
production came from the salt dome
deposits of Louisiana
and Texas.
These deposits, which are mined by
sified
into
a
balanced
and
economy.
We
will
continue,
with
civic
seek
small
dustries
groups
and
which
materials
of
machinery
in
in cooperation
our
either
the
sized
duced
use
.
the
in¬
to
the
1954.
region or produce
which
assists
in
the
this type
of industrial
1955
over
more
the
into
converted
was
mainder
with
A.
R. Watson
organizations, which have
our
service
We plan to expand
area
in
nationally
our
sales
sulphuric
elemental
in
used
of the
form
acid
in
or
in
the
mineral
and
other
use
con¬
the re¬
chemical
compounds.
Fertilizers accounted for about 33%
of the total
con¬
sumption; chemicals, 18V2%; titanium and other pig¬
ments, 7 Vz %; pulp 7j/2%; iron and steel, 7%; ground
and refined sulphur uses, 5%, carbon bisulphide, 4%%;
petroleum, 3%; and other chemicals and miscellaneous
9V2%.
uses,
PAUL
WISHART
B.
President, Minneapolis-Honeywell Regulator Company
.
The
multi-billion
automatic
dollar
controls
industry,
which gave
birth to and is feeding technology's glamour
baby—automation— is on the threshold of the brightest
future it has
know.
ever
Actually, the business of producing
selling equipment to do things
automatically — from regulating
and
home
f§
temperatures to flying quided
missiles—is growing at a more rapid
the nation's general
than
rate
econ¬
itself, enjoying its
healthiest boom in history.
The industrial processing field is
one of the largest users of automatic
which
is,
controls and
duce
was
one
of the first to
automation techniques to re¬
utilize
manufacturing
production
and
increase
costs,
improv^ product
The production and sale of
controlling and recording instruments
quality.
this
tional
the
last
25
years
twice
plants
fast
as
in expenditures for
350%
Sales
with
of about 325% and
economy
expenditures for
as
automatic
of
industrial uses during that period
increased about 700%, compared
general
Paul B. Wishart
as
na¬
equipment.
and
control equipment for
the
as
and twice
economy,
non-farm
increased
has
field
in
fast
increase in the
an
increase of about
an
non-farm plants and equip¬
ment.
official
Although
automatic
figures
dollar
controls
industry
on
size
the
lacking—due
are
of the
the
to
variety of controls made and the wide variety of
which
in
now
spent
they
used—it is estimated that in
are
alone, investment in automatic con¬
represents some 8 to 10% of the total dollars
facilities.
on
is
business
in
The
home
the
United
the
cal
number
one
States
reach
talks
and
automatic
of
air
conditioning
installations
heating
increased
has
a
growth of automatic controls
heating
some
400%
in the
total of nearly 17,000,000.
about
the growth
and future of the
tons
for the two must advance together.
progress,
The
pro¬
are
unmistakable.
'j
'
industries
as
aviation, chemi¬
cals, petroleum and atomic energy is well known.
5,515,000
knowledge born of long experience is teaming
M.
Williams
year-end. Texas Gulf Sulphur Company, the largest
producer, operated three, Freport Sulphur Company,
five, Jefferson Sulphur Company three, and Duval Sul¬
phur and Potash Company and Standard Sulphur Com¬
pany one each.
During the year, one new mine was brought into pro¬
duction, plans for the development of a new deposit
rapid
The
•
high degree of dependence on automatic controls
that already exists in such
from
gases,
400,000 tons
contained in pyrites, and
410,000 tons sulphur in various forms from other sources.
Thirteen Frasch process mines were in operation at
promotion program with the Reddy Kilowatt Appliance
process,
5,700,000
occurred
About 80%
signs
sulphur
than doubled the rate of increase
previous year.
water
14-Mile
ing about the whole future of industrial and technologi¬
tons in
Of the balance of the supply,
covered
ex¬
pioneered in our region.
Major electric appliance sales in
hot
estimated
390,000 tons represented sulphur re¬
pansion, our confidence for future
growth is encouraged by 1956 ex¬
pansion plans, within our area, of
several nationwide industrial
an
compared
raw
gathering of these materials. In ad¬
dition
Frasch
region, to
medium
Co.,
automatic control industry today, he is in essence talk¬
than four fifths of the total
More
diver¬
Parker
chhnge
little
1955,
pattern by industries.
When
ports
approximated 1,500,000 tons
compared with 1,650,000 tons in 1954.
welded
L.
Although domestic consumption of sulphur increased
about
last 10 years to
ex¬
pletely dominated by agriculture to
one
in which industry, natural re¬
sources
and
agriculture
are
now
The projects and their
Wyo., sour natural gas; Gulf Chemical Co.,
Girard Point, Pa., Sun Oil Co., Marcus Hook, Pa., and
Union Oil Co., Santa Maria, Calif., refinery gases.
in
5,-
600,000 tons compared with 5,050,000
has
deposits.
Field,
fields.
Domestic consump¬
to
to
year
dome
announced.
Another indication of the
all
under
several new projects com¬
obtain sulphur from sources
Signal Oil and Gas Co. and J.
record rate of industrial
We look forward to continued growth in 1956—just as
we have looked forward to—and
seen—growth for the
past
reached
and
dale, Utah, surface deposits; Rico Argentine Mining Co.,
Rico, Colo., pyrites; Jefferson Lake Sulphur Co., Manderson, Wyo., J. L. Parker Co., Penwell, Texas, and
trols
Production and consumption of sulphur in the
shore
American Sulphur & Refining Co., Sulphur-
sources are:
fields
M. WILLIAMS
President, Freeport Sulphur Company
R.
Louisiana
yet been
addition,
the industrial field
A.
the
in
were,
than
other
off
Plans for the development of the de¬
pleted during the
wide
LANGBOURNE
billions.
six
40 feet of water.
in
growing demand for its products in an expanding
a
economy,
and
intensive
its
been historically as a result
smaller than they have
reduction
as
in
Profit margins
industry despite intensified competition.
are
strip of land. Freeport is working
mining facilities there which will
attempt at producing surlpur from a de¬
install
to
other
omy
the railroads handicapped by
It lies beneath six
Orleans.
narrow
a
mark the first
if railroads are to
substantial
be
retired every year.
Effects
as
meet
To
pace
cars
continuous.
requirements, I estimate that at
least 12,000,000 tons must be added to our present steelmaking capacity by 1960. I base this on the definitely
indicated increase in population and on the constant
trend toward increased per capita consumption of steel.
In addition, there is a world movement toward higher
standards of living and without steel there can be no
improvement in living standards. St6ei is basic.
Other estimates of the
increase required
in steelmaking capacity are higher than mine. They may well
prove to be right.
In any event, one thing is certain.
The cost of steel expansion must be measured in billions
of dollars and the problem confronting all steel execu¬
tives now is the provision of these absolutely essential
operations
in
about
coast
eight feet of water and is separated from the Gulf
believe that new equipment
to
reason
every
business they expect.
of
think of
we
is
business
so
We must now think of
outmoded.
continuous
expired Dec. 31 last, it
expiration of the amortization provision,
Even with the
there
a
as
of rapid
buying to make up for the
deferred
represents
proportions.
advantage
take
to
Louisiana
sumed
railroads
1954.
whole.
Formerly, each expansion of capacity was regarded
as a separate project.
When one was completed, it was
expected that a considerable period of time would
elapse before another would become necessary.
That
try
railroads
of
dearth of order-placing during
the con¬
clusion is inescapable that steel prices must be higher.
In other words, steel must pay its way. And in my
opinion, it is sound, constructive and necessary for it
to do so from the standpoint not only of the steel indus¬
derived
wish
amortization provisions which
concerted
been due in part
buying has
accelerated
the
the
to
freight car shortage of unusual
a
While
if they are to maintain the
earnings
net
and
to meet
This source must provide a
companies.
basis
namely,
source;
during
dustry totaled an estimated 145,000
freight cars at the end of 1955, com¬
from the
of course, must come
money,
the
long
*
is located
Lake Pelto,
as
the
of
waters
miles southwest of New
of
upsurge
momentum
job?"
public
the
for
railway equipment
buying which began in the closing
months
of
1954
and increased in
the
regard it as the most
I
outlook
the difficulties being encountered in
the procurement of steel cloud pros¬
pects for the immediate future.
The reason for genuine optimism
over the next few years is based on
However,
term.
orders in history.
unfilled
of
promising
very
a
in
expand
to
obligation
steel.
shallow
to
Mfg. Co.
industry enters 1956 with one
backlogs
largest
the
This
known
deposit,
new
the
by
of
conducted
was
60
President, Standard Railway Equipment
The railway equipment
drilling
mine is the Chacahoula, La.,
new
five years.
The
WILLIAMS
A.
R.
The
areas.
property of Freeport. It is the seventh new Frasch mine
placed in operation in the United States in the past
continue its forward movement.
our
difficult prob¬
industry as it faces the
steel
region, and we expect 1956 to see
of
the serious and
the
confronts
that
growth are found in
sound
for
elements
economy
than lower in the future.
a
Thursday, January 19, 1956
.
announced and exploratory
were
in several
for the dealers.
in
present basis and with
that this cost will be higher rather
This fact underscores
in 1956, and look forward
area
the
ton on the
likelihood
the strong
our
better appliance sales year
the
to"expand capacity in this way.
For future growth, steel companies will be required to
construct entirely new plants regardless of whether the
building is done at present locations or at new sites.
The cost of doing this will be much greater—a minimum
$325 per annual
in
even
an
All
believe, however,
I
plants.
existing
at
Dealers
123
far plan to enlarge
programs so
of
.
.
(384)
technological strides
and
the
pressure
Now,
with
up
for
cost-
cutting to give impetus to the expansion of automation
from the
processing industries—where it has matured—
to the factory
What
ginning
production field.
actually
to
is happening,
realize
that .with
is that industry is be¬
the
great
electronics, in servo mechanisms which
of
electronics, and in computers which
advances
are
are
Continued
in
the muscles
on
the brains
page
126
Volume 183
Number 5460...The Commercial
and Financial Chronicle
(385)
Continued
from
7
page
rent values.
cocoa were
week
The State oi Trade and
centage figures for 1955
based
are
from
annual
on
tons
capacity of 125,828,310
of Jan. 1, 1955.
as
^
.
„
.
„
..
Electric Output Registers Further
amount
distributed
of
by
electric
the
energy
electric
light
industry for the week
ended Saturday, Jan.
14, 1956, was
estimated at 11,594,000,000
kwh.,
.
and
-
.
power
increase above the week ended
Jan. 7, 1956, according to the Edian
Electric Institute.
son
This
week's
output
advanced
"
~
"
537,000,000 kwh. above that of the
previous week; it increased
1,666,hwu.
vi
000,000 kwh. or 16.8% ciuuve the
xv.o/o
above me
the
was
a
only line
below
lass
the 1955 im„i rv.ec'Ue-,1,1,,
level. Considerably
retailers
and
tracto'rV
Gains in Latest Week
The
Wholesaling had only
in which failures remained
the
-
.
9.
failed
more
construction
-
In six of the nine major
regions,
failures rose in the week just
ended.
The
toll
States
in
the
Middle
jumped
to
and
owing to continued
marketings,
com-
small price changes
inducement to
yond
necessary
immediate
rotton
prices finished a
higher for the week after
fluctuating within a very narrow
P
Strength at the close
coverage be-
—
^
in the East North
Cen-
tral States, while the only declines
during the week occurred in the
buted to the President's farm
sage
proposing
below
nearby.
firmer undertoTe'ust wrckTnfluenced
the
by
thebeliefthatcrops'in
new year
«—
plus
out.
*
muc^ heavier receipts-and
was
majned
Quiet
as
oils
continued
hut
lard
to
prices
show
opening of bids under
a
strength
tended
to
foreign spinners
outcome of the first
lack of buying interest. Vegetable cotton export
*
the 14 spot cotton
light with, volume
faijing considerably below that of
year ag()
Export demand re-
Suited "the
lower
acreage aIlot-
period'
program.
the^special
CCC loan
entries in the week ended Decern-
ended
cuucu
Ago
slightly in the
Wednesday of
"*■
rose
on
last week and the total dollar volume moderately exceeded that of
the similar week
sumer
spending
numerous
a
year ago. Con¬
was
stimulated by
clearance sales and Jan-
promotions.
uary
gains
were
•
The total dollar volume of retail
trade in the week was 2 to 6%
higher than a_ya*
Anc-
Regional
regional
accord**
estimates
esiimaies
varied
vuriej*
from the comparable 1955 levels
Continued
on
page
,
notably higher failures
Jan. 7 Advanced 6.4% Above
Preceding Week
week
creased
the
revenue
ended Jan.
36,636
cars
freight for
7, 1956, in6.4% above
or
preceding week, the Associa¬
tion
of
year
American
Railroads
re¬
ports.
Loadings for the week ended
7, 1956, which included the
Year Day's
holiday, totaled
611,299 cars, an increase of 13,947
were
the
New
2.3%
or
above
the
corre-
sponding 1955 week which was a
non-holiday week, but a decrease
of 12,930 cars, or 2.1% below
the
corresponding week in 1954 which
also
was
a
non-holiday week.
U. S. Automotive Output Shows
21.5% Increase Above
Preceding Week
a
the
13
1956
according
avwwivo
Automotive
the
over
Last
bled
to
Reports,"
01
*£»
21.5%
previous week.
week
the
industry
estimated
an
"Ward's
rose
assem-
152,205
compared with:.-125,245
in the previous week.
The
past
mixed
last
the
previous week
by 26,960 cars, while truck output
advanced
by
6,277
vehicles
in
**
foodstuffs
week
index
drop
$5.95
with
showed
to
$5.92 on
the
week
were
declines
$6.81
a
year ago,
10,
from
before.
This
the latest index
decrease
a
of
included
week
flour,
corn,
cost
sugar' coffee and
while lower in wholesale
wheat, rye, bellies, lard,
butter_
,
beanE.
coco£!i
'
i
peas_
.
total
index
of
is
the
with
and
18,808 in the previous week
22,220 a year ago.
Canadian output last week
pressed for time I
sum
price
per
pound
of
foodstuffs
and
meats
in
like those
W&
When
you choose
as
II
open an
Brad-
mm
wholesale commodity
index, continued to move
§||
m
The
general
Range
level
of
prices,
price
week.
by
Dun
&
limits in the past
The index registered 280.38
narrow
Jan.
on
the
10,
280.48
a
278.70
on
Grain
compared
as
week
earlier,
the like date
markets
was
were
top
of all that, I
til
you're particular about the bank
—
j
.
any
choose The Dime. You
r
$20,000 in
a
tfmnnn
^
deposit from $5
now.
can
Individual Savings Account with
Joint
to
or
Use the coupon
$10,000
up to
Trust Account. Start
below.
with
and
a
Bank-by-Mail with
On
ways.
big Dime dividends and big Dime
m
Narrow
important, when I'm
as
can
security."
food prices at the wholesale level.
Wholesale Commodity Price Index
Continued to Move Within a
paid both
postage
and its chief function
the general trend of
use
show
to
represents
the
raw
within
States. This compared
convenient, and just
amus.
•The
measured
the United
"I SAVE AT THE DIME because it's
eggs
street daily
agency reported
25,085 trucks made in
•
were
ing the week. In the correspond¬
were
i1
oats' beef' hams'
steefs,
dur¬
Last week the
Certainty!
! I
13.1%.
Commodities quoted higher the
past
ing week last year 155,109, cars
and 22,220 trucks were assembled.
there
Convenient...
further
a
Jan.
brought the current figure to the
lowest since May 23,
1950, when
it stood at $5.90.
Compared with
general
of
t|!
advances
and
the
Bradstreet wholesale food
price
week's
that
[
outweighing
Dun &
and-Trucks
above
in
Past Week
Movements
31
production; total of cars
amounted; to 177,290
units, - or > an increase of 33,237
units .above the preceding week's
output, states "Ward's.";;
Last.; "week's .car output
rose
26
Wholesale Food Price Index Held
To Downward Trend the
cars,
(revised)
:
failures
against
as
preceding week and 32 in the
reflects
Output in the automotive indus¬
try for the latest week ended Jan.
Canadian
recorded
ft
similar week of 1955.
Jan.
cars,
ago.
Thirty-one
Loadings of
the
a
than
with
year ago.
ill!
generally
steady during most of the week
but developed some
uncertainty
the
President's
farm
placed at 5,955 cars and 1,051
trucks. In the previous week Do¬
minion plants built 4,126 cars and
following
912
message to
trucks, .and
able 1955
for
the
week, 6,056
compar¬
ears and 977
trucks.
be
Business Failures Rose Sharply in
Past Week
Commercial
ures
and
climbed to
ended
Jan.
12
industrial failin
245
from
the
198
week
in
the
preceding week, according to Dun
& Bradstreet, Inc.. The toll was
considerably heavier than the 200
in the
1955
comparable weeks of both
and
1954.
remained
level
of
However, failures
36%
below
380
in
Liabilities
of
the
prewar
1939.
$5,000
or
more
involved in 202 of the week's
failures as against 170 last week
and 171
a
year ago.
Small failures,
those with liabilities under
$5,000
increased to 43 from 28 in the
previous week and 29 last
Twenty-five of the failing
cerns
had
$100,000
liabilities
as
in
compared
year,
con-
excess
with
17
of
a
week ago.
All
had
industry
trade
groups
increases
the
from
21
and
commercial
service
to
17
corn
pro-*
duction this year.
Some
conditions
hard
Southwest
normal
the
wheat
and
was
good
drought
the
over
areas
the
moisture
of
less
and
prices
reflecting meager
ducer offerings. Rye
prices
aided
by
a
in
Demand
more
for
held
well
up
the
than'
condition
other sections.
many
corn
by
prevailing
Winter
pro-^
81
SAVINGS BANK OF BROOKLYN
P
buying of the bread cereal
influenced
was
W
the belief there will
on
large cut in acreage and
g
m
DOWNTOWN
....
II
Fulton Street and DeKalb Ave.
r*
I
BENSONHURST
FLATBUSH
II
...86th
......
Ave.
Street
and
19th
Avenue
in
J. and Coney Island Avenue
CONEY ISLAND... Mermaid Ave.
and W. 17th St.
la
III
were,
active
ex¬
Member Federa]
port demand, while steadiness in
oats
reflected
limited
offerings.
Trading in grain and soybean futures on the Chicago Board of
Trade was more active last week
with
daily
average
purchases
totaling 54,700,000 bushels, against
26,900,000 the week before and
45,200,000 in the same week last
Mail this coupon to any
The Dime Savings
I 1
! endose
mm
□
office of
Bank of Brooklyn.
Please °Pen a Sa™£S ACC°Um
$
Deposit Insurance
'
Corporation
Individual Account in my name alone
q Joint
Q Trust
Account with
Account for
year.
Spot
and
during the week,
retailing toll up to 129
110, manufacturing to 50
from 38, construction to 28 from
with
a
firm
were
II
Activity in both wheat and
broadened
SW
war
Congress.
for
the
from
ness
cocoa
scattered
in
the
Print
prices moved lower
week.
Easiness
Nome
resulted
liquidation, weak¬
London
market,
Address
m
and
continued pressure of spot sup¬
plies with manufacturers showing
little interest in offerings at cur-
City. Z°ne
No"
should b* tent
te».
wwXviv'/wXrXv?
I
re-
P°rt?dJn the v®,ume of household
J"rnlshings and some apparel
ber 30 declined sharply to 264,000
sag
Year
a
Considerable
Trading in
dornest c sP°t
moved6shar^fly
restrictions
present
problem.
markets
4
mes-
acreage
Dlir
raw sugar
parket continued dull while tradlr?g }P futur^s increased sharply
v
Week
Retail trade
attri-
quantity allotments as a move to
*
Ieach the core 0A the cotton sur*
starting in June may
not be as large as expected and
the possibility of an international
agreement being worked
further
and a proposal that
"
East ouuui ^cimai and wesi South
msi South Central auu West
i>oum
comparable 1955 week and 2,580,-'Central States. Five
regions re000,000 kwh. over ;the like week ported increases and four
had
in 1954.
slight dips from 1955.
Both the
Middle Atlantic and Pacific States
Car Loadings in Week Ended
had
was
replacements for
and
Trade Volume Perked Up a Trifle
Last Week and Exceeded Like
range.
nearhv
and
bales, from 407,000 the week before.
cuts
immediate
hog
cnnt
offering little
or n0
heavy
shade
101
from 61 and in the Pacific States
increased to 65 from 58. No
change
appeared
bags
con-
thanTyear 7go,
while rises in manufacturing and
service were relatively mild.
Atlantic
301,657
pared with 96,060 a year ago. Activity in hard wheat bakery flours
continued
routine
with
recent
Industry
slight rise and
at
Warehouse stocks of
slightly higher for the
125
127
126
The Commercial and Financial Chronicle
(386)
Continued
from
of electronics, automation techniques can
be advanced into
broader field of manufacturing.
a
phasis
is
now
natural
a
evolution
The future potential that this offers for automatic con¬
even more
now
that
growth industries of the future
the great
big
are
of
users
significant when
controls,
automatic
consider
we
already
including
atomic
for four basic
saving
petroleum
stainless
the
fuels
and
and
field,
aluminum,
metals
the
field,
plastics.
We of the
1956
is
Haloid
for our products
effective dissemination
the need for more rapid and
intensify
technological
and
through research,
progress
in¬
areas,
of chemistry, sufficient
to sus¬
(5)"
and
for the more efficient
tion to be focused on the need
handling of information.
'
v
•
investor potential.
The factors for concern are not,
in
my
cient to offset the reasons for confidence
opinion, suffi¬
in
good year
a
They do, however, make it clear that keen com¬
ahead.
existing
and for clear business'
markets,
competent research personnel, will join with
minds and
Office systems specialists will cause more atten¬
(4)
Company believe that the outlook
Our field, which is primarily that
of copying, expanded considerably in 1955, and we feel
certain that this growth will continue.
and
petition for
marketed.
(3) New and improved products will be
bright.
scientific
of
ing power and
,
of data increases.
President, The Haloid Company
for
/
(2) There will be a greater demand
as
C. WILSON
J.
:-;i
somewhat
be
should
higher than in 1955.
and
based
not
are
taxation which interferes with adequate consumer buy-
activity
business
(1). General
natural gas and
power
in
titanium
and
steel
chemicals,
electricity,
machinery,
in
which
insufficient number of college graduates
an
number
a
tain
optimistic about the outlook of
reasons:
electronics, selected armaments, air conditioning,
energy,
Thursday, January 19, 1956
down,
or
cluding certain phases
receiving adequate attention.
To summarize, we are
1956
labor
in
work is just
bility of striking savings in handling paper
trols, becomes
(4)
facts;
The possi¬
is turning toward paper work.
up
.
squarely on facts and the sound interpretation of those
cost cutting em¬
as
either
economy,
specialist, is assuming increasing .import¬
or
This
ance.
and analyzers
now
consultant
124
page
.
.
enterprise in the establishment of new
markets as hall--
marks of successful firms in the 1956 business year.
As
shifts
ensue
in
consumer
spending from
one
field
General business in 1956 should be
better than last year.
even
in
This rise
activity from the exist¬
business
ing high level will put
cedented premium
an
healthy, profitable, competitive, bustling year. The con¬
tinuation of widespread confidence in our economic well
omies, labor saving techniques, and
the
better
of
use
human
skills.
being
Haloid's
products and those of our
competitors meet these require¬
the
in
ments
and office
of
1955
It
has
become
in
the
them
increasingly evi¬
years that a
last
few
revolution in office systems and pro¬
cedures is being brought about by
an
increasing need for
ter information in
steps
company
more
more
the
up
J.
C.
Wilson
hands with greater speed.
of its operations
As
and
competition becomes increasingly keen, it becomes
important than
ever
a
as
more
that people in positions of responsi¬
bility must receive operations reports while the informa¬
tion In them
offices must
is
be
still
fresh
that
and
branch
plants
or
given promptly the facts they need to
activities
with
the
of
rest
the
organi¬
zation.
We,
market.
as
others in
bring
We
new
expect
our
and
that
industry,
are
improved
number
a
marketed for the first time in 1956.
products
replacement of present equipment
it may not
lieve, is
a
be physically
clear indication that
even
is
a
as
the
will
be
designed
are
to
justify
though in
out.
worn
ours
so
con¬
to
these
of
They
provide performance and economies
cases
striving
This,
we
be¬
industry.
hitherto
had
for
before
knowledge
detecting
based
reason
unsung
for
optimism is the fact that
our
fraternity,
that
of
the
office
a
systems |
in
experience
on
ican
our
population
which
the
for
alleviating
and
these
anticipation.
with
reached
an
attainment of greater production capacity than
industries:
rational
(3)
is market in segments
actions based
conclusions
to
as
a
number of
emotional rather than
on
future
the
of
the
of
American
a
as
chemistry. The;
.
■
sales
Chemical
expansion will be felt in
Ours
is
a
people
in] the
will exceed
past
year*
in
it
are
one
billion
Some of the effects of
1956, more m 1957 and
changing
growing,
business
geared to a fast
and
on
hard work,
a
a
sound
and
deliberate
and growth guided by
action should yield
us
another
banner year.
Smyth Heads Dept. of
Phila. Nal'l Bank
PHILADELPHIA,
Pa.—Gordon
PUGET SOUND
PULP
Smyth, Vice-President of the
Philadelphia National Bank, has
been appointed head of the Bank's
investment
division
AND TIMBER CO.
—
•
—
succeed
Cascade Natural Gas
appointed as Assistant to the Sec¬
retary of the Treasury,
Corporation
Form
King
formed
been
;
Dewey, King Johnson
Dewey,
BELLINGHAM, WASHINGTON
to
Natural Gas is Coming!
who has been
George B. Kneass,
Johnson
&
with
offices
has
at
64
Wall
Street, New York City to
engage
in a securities business.
Partners
are
George A. Dewey,
E. King, Gilbert M.
Joseph Sussman and
Jr., Ross
Blakeney,
CASCADE is
now
serving 24 growing Northwest
Andrew R. Johnson.
communities in Oregon,
Rumjahn, McDonough
High Grade Bleached
Rumjahn, McDonough and Kap¬
Company is engaging in a se¬
lan
curities
Sulphite Pulp—Paperboard
Industrial Alcohol
110
business
West
42nd
offices
Alex
A.
Street, New York
Natural Gas is due in July of 1956.
...
Straus, Blosser
WINONA,
has
Straus,
Chicago.
Annual Report
and Information Available
Rumjahn.
407
(Special to The Financial Chronicle)
Bray
Washington and Idaho.
at
City. Partners are Jack L. Mc¬
Donough, Victor L. Kaplan and
With
Lignosite
from
Minn.
joined
Blosser
.
&
—
William
the
staff
McDowell,
.
E.
of
of
Securities Bldg.
•
faith in the future
thoughtful watchfulness of new-
signs on the economic horizon,
careful
the
moving,,
■
optimism,
Conservative
based
,
to look to 1950
highly competitive pace.
S.
of'
major ingredient of our Amer-i
dollars for the fifth straight year.
chasing power due to falling prices at the farm level;
(2)
is
in plant expansion
investment
this
aware
estimated $23 billion, an all-time high. Total
an
successful
decline in farmer pur¬
such
The chemical industry has good reason
effectively
economy,
sharply
me
economy's present well being.
sive bulges or cavcins.
a
made
for encouraging more high school graduates
trained younger men
J. Albert Woods
1958.
(1)
has
Manufacturing'
rolling back of new frontiers by adequately
relentless
flaws, and (4) an economy which today shows no exces¬
Concern factors include:
•
to matriculate in science subjects
activities
flaws
Association
the urgency
at least 200,000,000 people by 1975;
us
research
American business for that
.•• •
•
Chemists'
in
for his
is the keystone of
My participation in the affairs of the
and improved saleable products and serv¬
new
there presently
Another
purpose.
,
will!
credit, it
industry in its expenditures for basic research
—one-fourth of all spent by
ices; (3) more reliable alarm systems than we have ever
many
healthy, dynamic
give
scale
broad
probe for
well
as
tinually to
to
(2)
growth
continuing
consumer
Most recent figures show that chemicals
progress.
led all of
segments of the economy
significant
of
businessman to fight
chemical industry research
In the
which, if unchecked, could cut into
sales, profits and the vital capacity
of private investors for capital in-t
vestment and expansion.
Confidence
factors
include:
(1)
the
satisfaction
enterprising
prices and marketed with enthusiasm and imagination.
our
well reveal mild stresses and strains
in various
buying power sways between new pur- >
share of the market with better goods produced at lower
(
as we are
which should
coordinate their
levels
the
the
behoove
in
reliable guidepost for 1956.
parent in the last six months of 1955.
The latter part of the New Year may
and bet-
tempo
a
investment
and
consumer
in an industrial
boom which may be in full maturity
as we move through its
second year,
the future bears close watching. The
six months immediately ahead will,
for most businesses, be a continua¬
tion of their respective patterns ap¬
year.
dent
as
Engaged
we ex¬
for
demand
producer,
on
establishes industry's performance
work
paper
systems, and thus
substantial
pect
this
field
the threshold of another
American business stands at
econ¬
as
chases and
Commercial Solvents Corporation
President,
unpre¬
greater
on
to another,
ALBERT WOODS
J.
Seattle 1,
Wash.
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
Continued from page 21
To meet this
quire
challenge will re¬
steady expansion of facili¬
a
ties and
Motor Vehicle Production
expenditures should reach $8 bil¬
1956, including $5 billion
Not
the population of
continuing to grow
rapidly, but more and more peo¬
ple are moving to suburban areas
lion in
for
mcdernization
tion.
This
and
represents
construc¬
increase
an
over
1955, even though the con¬
struction figure is still
woefully
inadequate.
■■
On
the
basis
of
where
1955.
Facilities
utilized
were
of
all
beyond
recognize
successful
that
formula
economic progress and
Busi¬
only
by
more
better equipment.
that
of
means
than in
and
sales
nearly 15% higher
figures add
up to a
for business
view
.new
the
annual
with
importantly to its growth
growth
•/
'
■/.
■
and
to
of
•
:
.
New
Car
V
.
$350
million
models
to
of
to
bring
been many
re¬
its
in
types
of
in
two
the
of
lines
our
Last year,
pioneered
we
four-door
hardtop, the first
new body type since
completely
1949 when
introduced the two-
we
door hardtop. For 1956 this revo¬
lutionary development in body
engineering and styling is avail¬
able in all five lines.
of
this
The impact
striking
combination of
beauty with comfort and conveni¬
has been felt
ence
throughout the
industry and will continue to be
for
long time to
a
come.
development in the fine
new
field
car
is
Brougham.
t<~e
Eldorado
Exhibited
of
one
as
last year's dream cars, this smart
model received immediate public
approval.
It
is
am
sure
see
car
lines
you
will agree when
our
passenger
display at the Motorthat they maintain General
ama
on
leadership in engineering,
styling and value for the custom¬
er's dollar.
They
important
They
are
have
the
1958
models
over
t'e
of
the
important
their
Without question
sent
1955.
over
greatest values
the
we
best
improve¬
1955
models.
they too
values
:
also
repre¬
that
tney
have ever offered to customers.
Last
year
senger
38%
cars
over
senger
consumers
only 7%.
sales
to
51//2%
of
expenditures,
about
average
the
of
about
postwar
of
and
as
4%
years
for
and
as
it.. .In mother
For General Motors 1956 should
be
record
a
1955.
by
exceeded
year
If
my
only
appraisal of the
picture is cor¬
economic
over-all
rect, then General Motors' volume
of
sales- in
physical and dollar
not be far from
level
record
should
attained
another
be
in
highly
suppliers.
a.
prewar
year
spend¬
most
of
public
expansion
As
evidence
concrete
of
Gen¬
in
just
and
much
to
ahead, and in the long-rahge
picture as well, we are accelerat¬
expenditures
In
that
represent a
highways
in
facilities,
necessary and desirable as
as
capital investments made by
industry.
The economic loss to
the
country from
inadequate
our
road system is
calendar
for capital
year
1956
our
capital expenditures will amount
to $1 billion. This represents 65%
more than
we
expended in 1955.
It
is
the
largest
expenditures
any
of capital
made by us in
year.
one
When
estimated at more
than $5 billion annually.
President Eisenhower's proposal
for a 10-year, twice-as-big, road-
building
kind
of
that
represents
program
thinking
is
needed.
the
and
leadership
sincerely hope
I
that Congress will act immediate¬
ly to implement this program with
the necessary enabling legislation.
Nothing has more dollar and cents
importance for every American.
Nothing is
more
essential
to
the
welfare
every
segment
of
our
of
Closely allied to the need for
adequate highways is the com¬
pelling need for greater safety on
the road.
ord
in
While the accident
the
decline
1955
year
on
vehicle-mile
a
rec¬
showed
38,500
deaths
tribute
on
our
importantly
to
reducing
the engi¬
the accident
toll, just as
neering of safety into our
mobiles
is
auto¬
contributing to
the
However, it must
objective.
same
tors
built
must
driver
to
addition
will
$4Vz billion.
to
end
have
This is
substantial
very
expenditures
for
special
ily
lies
in
providing an in¬
dustrial structure capable of sup¬
porting a gross national product
us
of this
size.
We
must
be
able
provide goods and services for
However, the automobile industry
will
share
substantially in the
general prosperity of 1956.
who
population of 190 million
will
posable
billion.
have
an
to
a
persons
estimated
income' of
the
with
the
wheel.
for
meeting the challenge
respect to technology, we
ahead
move
at
pn
ever
fields of knowledge
as
and
unfold.
Each
new
ther developments.
A
about
dis¬
$400
of
measure
General
Motors'
determination to make its proper
contribution to
ress
is
technological prog¬
Technical Center,
completed, which will
all but
its
new
be dedicated next May.
In
my
recent
appearance
in
Washington I laid particular stress
on
what
I
referred
quiring mind.
General
this
to
the
in¬
reason
for
I
success,
said,
inquiring
mind which
everything and any¬
be improved.
This is
the attitude of mind
at
the
as
A basic
Motors'
that
II
rest
Technological Advance
As
can
War
Highways
car.
to
behind
thing
World
his
continue
improvement of facilities
capital investment since the
in
into
be made only potentially safe.
The final responsibility rests and
can
holds
completed, total ex¬
penditures by General Motors for
of
to
graduating
twice
engi¬
Russia,
whereas today Russia is graduat¬
ing more than twice as many as
and
neers
as
many
scientists
as
Technical
cultivate
we
Center
and
throughout
the
corporation
to
stimulate technological progress.
This
attitude
the dream
mind
of
produces
will see at the
Motorama
including the new
Firebird II, an experimental gas
cars
you
—
turbine
that
car
may
foreshadow
the motor vehicle of tomorrow.
In
another
area
this
attitude of
mind produced the Allison propjet engine.
Still another example is
Aerotrain.
oped
by
This
suggestion
ing
train
General
of
railroad
a
was
Motors
group
executives
greatly concerned
the
new
devel¬
at
the
of lead¬
who are
the annual
$700 million passenger deficit.
In undertaking this project it
was our hope that General Motors
+2 to +6; South and
-f-3
to
+7;
Middle
4-5 and Northwest 4-4
4-8%.
in
Volume
women's sportswear
knitted
and
skirts
past
gains
principal
with
week,
the
noticeably
expanded
in
sweaters;
In Russia every second¬
school graduate is a potential
engineer
or
scientist.
In
the
scarfs and gloves were
popular accessories and volume in
women's shoes was slightly above
the level of the previous week.
United
There
are.
we
ary
States
not
met
vast
majority
alone
to
insure
economic
Blouses,
the
con¬
of
progress
country but to safeguard its
existence.
outer
thrive
chairs.
challenges.
I
have
nation
our
that
every> confidence
will continue to
sur¬
mount the
challenges that face it.
to expand and
with benefit to all.
In
will
It
continue
prosper
General
Motors
mined to make
our
deter¬
are
toe
retailers
increase
reported
dollar
in
and
week
last
because of
in
Furniture
slight
sales
a
volume
moderately
the level of the
exceeded
course,
children's
clothing;
jackets and
coats increased moderately.
America is a coun¬
try that has thrived on challenges.
It might almost be said that we
Of
considerable increase
a
interest in boys' sports
our
very
was
volume
in
challenge that must be
a
not
tinued
the
trained.
so
This is
similar
1955 week. There was an increased
call
for
bedding
Sales
occasional
and
promotions encour¬
aged consumer interest in linens,
towels and draperies; the buying
of floor coverings decreased
noticeably.
appliances
The buying of major
noticeably reduced.
was
their
boosted
Housewives
full contribu¬
pur¬
meeting the challenges chases of fresh produce and can¬
ahead
and helping to build an ned goods the past week. Butchers
ever more
dynamic and prosper¬ reported a slight increase in the
volume of fresh meat, while poul¬
ing national economy.
tion
to
try sales dropped somewhat. In¬
terest
in butter rose somewhat,
Bank of America Group
Offers $9,460,000
San
Diego Harbor Bds.
Bank of
too
highways.
Adequate highways would con¬
many
Coast
West -fl to
Six years ago we were
a
basis,
Industry
adequate supply of engineers and
the number of fatalities again rose
to 38,500.
And that is
was
been
from page 125
The State of Trade
fic
economy.
programs for expan¬
our
sion and
have
total
ever
per¬
.%
now
the
The
economy.
Continued
Southwest
say
the
the
year
ing our
goods.
a
major
important
challenge to continued
technological advance is the in¬
America N. T. & S. A.
and associates
000
are
offering $9,460,-
City of San Diego, San Diego
Calif. 3'V2% and 2J/2%
while
purchasers of cheese and
equal to those of the
previous week. There was an up¬
surge
in the buying of frozen
eggs
inclusive.
1981,
The
bonds
1.75%
to
1957 to
scaled. to yield
are
2.60%, according to
in¬
January sales promotions at rewholesale buying
tail ^stimulated
of
the
offering
include—Blyth & Co., Inc.;
Boston
Corporation;
Ripley & Co.; Lehman
Brothers; Merrill Lynch, Pierce,
Fenner & Beane; R. H. Moulton
&
Company;
The
Philadelphia
National Bank; Security-First
National
Bank
of
Los
Angeles;
group
First
Harriman
&
Hutzler; Equit¬
of
lines
many
and
apparel
household furnishings.
ma¬
:
Bros.
as.«retailers
purchasing of Spring
merchandise.
in
Other members
Salomon
week
last
ters
creased their
'
turity.
The
were
juice concentrates.
Buyer attendance rose notice¬
ably in the major wholesale cen¬
County,
Harbor Bonds, due Feb. 1,
Some
apparel
wholesalers
re¬
ported short supplies of women's
accessories and men's furnishings.
Department store sales on a
country-wide basis as taken from
for
dex
week
the
in¬
Jan.
ended
1956, decreased 11%
the like period of
the preceding week,
an increase of 10%
reported.
Board's
Reserve
Federal
the
7,
below that of
last year. In
Dec. 31, 1955,
(revised) was
For
the
four weeks
7, 1956, an increase of
recorded. For the year
able Securities Corporation; Dean
ended Jan.
Witter &
8%
Co.; J. Barth & Co.; R.
Pressprich & Co.; Lee HigginCorporation.
W.
son
advance stimulates dozens of fur¬
confidence
Motors'
our
make
most
a
Another
are
investment
broaden
Investment
ing channeled to automobiles may
not reach the record level of 1955.
too
faster rate
Capital
fore
consumer
demands
not
capital
with
compared
con¬
our
highway system that
a
improved
must
the
earlier
highways
of
one
economic
is
profit¬
toward the goal of a gross
national product of $550 billion
by 1965. The great challenge be¬
total
better
be
'the
meets
It
tools'during this period.
■
As I view the longer range pic¬
ture, our country is moving stead¬
an
for
to
must have
able year for our dealers and for
our
of
scientists.
domestic problems.
A
nation so dependent upon the ef¬
ficient operation of motor vehicles
the
1955.
annual
pas¬
our
words, the year will be profitable be recognized that in the last
for everyone willing to work to
analysis it is up to the driver to
make it profitable.
,
take advantage of the safety fac¬
con¬
consumers
of less than 3%. This
percentage of
For producers
make
we
by
pressing
is
.rose
showed
Retail
that
sellers,., 1956 will -be just
good
amounted
pas¬
1954, whereas total
car
sumer
with
to
sales
expenditures
sumer
increase
were
retail
of
year
The
most
the ?,• entire
competitive-system
our
way
sons—the customer.
other
manufacturers
many
ments
represent
offered to customers.
automobile
show
outstanding
and
advances
ever
The
are
respect
every
another
works—to the benefit of one per¬
Motors'
f
be
estimates. vBut
these
ize
eral
all five of
you
in
will
history of our in¬
'' ;,,v'b.!'
industry will be required to real¬
now
August, 1956.
Including
to other
production and
competition.
aggressive efforts of
being tooled
by Cadillac for limited production
I
export
terms should
A
in
year.
for
intense
-
likewise has advanced.
last
'
This
automatic
Hydra-Matic,
Dynaflow and Powerglide. Styling
—
pas¬
made public
was
4
and
dustry.
important mechanical
three
all
1955, which
March
sales year in the
have
advances, including improvements
transmissions
that- the
trucks.
This is
revised estimate
and
with my
be the second best
1958
There
market.
estimate
I
industry will produce
markets, unit production in 1956
should approximate 8,350,000 cars
and trucks. Nineteen fifty-six can
than
more
,
Cars
Canada
Styles
cutlay
an
these factors, I
ahead with great
approximately 7,500,000
line
on
■
For General Motors alone it
quired
with
all
year
senger
for
the economy as a whole.
!
con¬
compared
as
in
so
development
and
sorb
models
need
continues
It
arid the domestic market will ab¬
prior'years, the
introduced
accordance
industry
practice which has contributed
the
the
automobile
automobile
The
Policy
current
1956
confidence.
for the
—this year, as in
in
in
Appraising
,
generally. "
industry
the
is
represented
national security.
1955.
1955.
All cf these
As
not
policy bf
the Federal Reserve, which is re¬
strictive from the standpoint of
the cost and availability of credit
and may result in less support to
It is estimated
very prosperous year
distribution
highway facilities.
safety,
An important factor to be
expenditures by in¬
1956
will amount to
or
and do
1955
Federal Reserve
sidered
pro¬
more
nation, we are not meeting
the challenge in that vital area of
a
modern mechanical
more
styling features.
\
capital
dustry in
$32 billion,
prior to
sector
to
to
alone.
As
:
advanc¬
an
country
cars were pur¬
insuring
ing standard of living is to
duce
this
in
cars
about
are
It will require
able
be
contribution
steady progress in all areas of formance of the Aerotrain is now
technology.
being evaluated by the railroads'
Industry generally is in the experts. Whether it will be con¬
process of meeting the challenge sidered to have made a contribu¬
with respect to plant facilities.
tion to railroad transportation will
by the following percentages: New
be determined by them and them
England 0 to +4; East and Paci¬
Improved Highways
increas¬
people
new.
chased
and
cars
who bought
But nearly two-thirds
by
have the
eco¬
the
for
them
absolute
There
of these 20 million
kinds
their
nomical capacity last
year.
nessmen
owned
an
two
rule.
million;
20
is
car
and
ingly the
known
is
one
necessity
plans,
new plant and
equipment expend¬
itures by industry in 1956 will be
even higher than the record total
of
only
country
our
capacity.
would
And
And the Business Outlook
^
127
(387)
Third
National
of
Bank
was
1955
gain of 7% was registered
a
above that of 1954.
Nash¬
in
volume
trade
Retail
New
ville; Coffin & Burr, Incorporated;
York
F.
slightly above the comparable pe¬
S.
Smithers
&
Co.;
Wm.. E.
City
past
the
week
was
Pollock & Co., Inc.; W. E. Hutton
riod
&
Co.; Shearson, Hammill & Co.;
Ira Haupt & Co.; William Blair
&
Company; Gregory & Sons;
estimated
the
about 2 to
3% ahead of 1955, not¬
Freeman
the better
&
Company; Commerce
&
A.
Co.;
mick
&
Kaiser
G.
Edwards & Sons;
Company; McCorCo.; H. E. Work & Co.;
&
Co.; The Continental
McDonald
&
&
Trust
Company, Salt
City, Utah.
Lawson,
Levy
&
Williams;
Stone & Youngberg; Hill Richards
store sales
Va ;
V.
Pvan,
Sattley
Sutherland
&
Co.;
Meyer & Fox; McMaster Hutchin¬
&
Co.;
&
Magnus &
Fay;
The
Company;
First
Re¬
department
in New York
City for
the
preceding week, Dec. 31,1955,
increase
an
of 4%
For the four weeks
dex
that
in
an
was
recorded.
ending Jan. 7,
increase of 6% was regis¬
the year 1955 the in¬
For
recorded
of
the
a
rise of 2%
above
corresponding period
1954.
Your
RED
of
Arizona Co.; R. D. White & Com¬
over
Federal
&
seller & Durst, Inc.; Stern, Frank,
Hooker
the
index,
Inc.;
Singer, Deane & Scribner; Wagen-
son
to
weekly period ended Jan. 7,
1956, decreased 19% below that
of the like period last year.
In
1956,
H.
pany;
& Miller, and C: N. White
CROSS—
Redfield & Co.; Jones, Cos-
grove
&
Co.
at
weather
inclement
Board's
tered.
ville,
increase
the
Bank
Co.;
Trade observers
week's
part of the week.
According
serve
Lake
& Co.; Irving Lundborg
& Co.;
Shuman, Agnew & Co.; The Peo¬
ples National Bank Charlottes¬
ago.
year
withstanding
Trust Company, Kansas City, Mo.;
City National Bank & Trust Co.,
Kansas City, Mo.; The National
City Bank of Cleveland; Carl M.
Loeb, Rhoades & Co.; Cruttenden
a
must carry on I
128
The Commercial and Financial Chronicfe,
(388)
'
Corp.
Dec. 20 (letter of notification) 816 shares
Atlas
r
Plywood Corp., Boston, Mass.
Nov. 14 filed 97,144 shares of common stock (par $1)
being offered in exchange for the outstanding 291,431
shares of common stock of Plywood, Inc. on the basis of
one
Atlas share for each three Plywood shares held.
Atlas presently owns 496,680 shares of Plywood, Inc.
stock and desires to acquire at least an additional 133,809
shares in order to bring its holdings of such stock to
^
of 5% cumu¬
participating, preferred stock (par $100) and 816,.
f hares of class A common stock
(no par) being offered
to class A stockholders of record Dec. 15, 1955, in units
of one share of each class of stock for each four class A
lative
rhares
held; rights to expire on Feb. 15, 1956.
$101 per unit to stockholders; $110 to public.
—For corporate purposes. Office—Paris Ave.,
„
Price—
Proceeds
P. O. Box
Underwriter—None.
248, Northvale, N. J.
/
/
530,000 shares are to be offered publicly. Price—$3 per
Proceeds — For liquidation of liens on mining
Underwriter—Harris
■/.'■;:''
assessable
activities.
Utah.
Dec.
American Business
Dec.
Research, Inc.
(letter of notification) 19,000 shares
9
of rionpreferred stock. Price — At par ($5 per
Proceeds—For working capital and general cor¬
porate purposes. Office—8002 Wisconsin Ave., Bethesda,
Md.
Underwriter—G. J. Mitchell, Jr., Co., 1420 New
York Ave., N.W., Washington, D. C.
American
M.
A.
R.
C., Inc., Pittsburgh,
Co.
of
Pa.
Angeles;
complete purchase of the patent
licenses from Diesel Power, Inc. and operating capital.
Office—Oliver Building, Mellon Square, Pittsburgh 22,
G2
shares for each 100 shares owned.
share.
Proceeds
ment and for
—
For expansion
working capital, etc.
Price
of plant
—
$13
Arizona
;
Public Finance Co.,
Phoenix, Ariz,
Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
Atlantic
(2/1)
-
construction
program.
Underwriters—Union
Securities
Dec. 16
stock
(par
'
Corp. and Smith, Barney & Co., both of New York.
$100)
cents)
and
20
10
common
Co., Las Vegas,
pf which
1976.
and
City, Utah.
12,000 shares are to be offered for public sale
at $50 per share and 8,800 shares are to be
offered in
Bonus
for
mining
.
and
490 shares of cla
.
Underwriter—Emory S. War
.-.xj-'-)
Co., Milwaukee, Wis.
&
filed
Refining Corp.
25,000
•
—
shares
of
(1/30-2/3)
Coastal
States Oil &
19 filed
Price
—
common
To be
To
Gas Co.
500,000 shares of
be
supplied
by
stock
common
amendment
(par $1)
(expected a
around
$7 per share). Proceeds—To pay off loans in
curred for land purchases, for construction; of gas pipe
lines and for further drilling. Business—To develop oi
lands.
Blair
Office
&
pected
—
Corpus Christi, Texas.
Co., Incorporated, New York.
some
time in February. r
Colohoma
Uranium, Inc.
\
;
(3/1)
Underwriter
•
Offering
.
r
—
Ex
<
.
;
Nov. 9 filed 2,500,000 shares of common stock
(par
on
cent). Price—40 cents per share. Proceeds—For.explora
tion and development expenses and for general corpo
rate
purposes.- Off ice—Montrose, Colo. Underwrltei
General Investing Corp., New York; and Shaiman & Co
Denver, Colo.
•
J
/.
_
Comet Uranium
Corp., Washington, D. C.
Aug. 20 (letter of notification) 700,000 shares* of com
mon stock (par one cent).
Prices—Five cents per shai
Proceeds—For mining operations. Office—501 Perpetu
Bldg., Washington 4, D. C. Underwriters—Mid Americ
Securities, Inc.,. Salt Lake City,/Utah; and Seal
Securities Corp., Washington, D. CT.
.
^
Uranium, Inc., Denver, Colo.
..c
stock (par $1)
supplied by amendment. Proceeds — T
Emory T. Clark, President of the company. Office—Wes
Allis, Wis. Underwriter—Loewi & Co., Milwaukee, Wi
stock
Office—Salt Lake
expenses.
Underwriter—None.
5
Price
preferred
Proceeds—To make additional cash payment on purchase
contracted
voting stock,
Offiee—2630 Sout
Underwriter-—Denv
&
Clark Oil
Jan.
of principal amount."
,rv
-
•/ •
common
Washington, D. C.
Co., same address.
—Loewi &
shares.
Price—100%
>1.,.
supplied by amendment. 'Proceeds—For expansion an
working capital. Office—West Allis, Wis. Underwrite
-
Nev.
common
one
&
Dec.
common
„
Refining Corp. (1/30-2/3)
Jan. 5 filed 87,500 shares of $1.20 cumulative convert
ible preferred stock, series B (par $20). Price—To b
A" Blue Lizard Mines/ Inc.". ■
;,V
Jan. 17 filed $900,000 of 8%'* convertible subordinated "
debentures due
Investment
28,000 shares of
sold in units of
be
.
stock). Price—99%. Proceeds—^-To suppl
subsidiaries. Office—1028 Connecticut Ave
Clark Oil
Bird, President and Treasurer, 355 No. Forest Road,
Williamsville, N. Y. Underwriter—None. -
—
Atlas
ren
W.
Texas.
Jan. 9 filed 20,800 shares of class B
and
to
Underwriter—Crichto
common
N. W.,
Price—$102 per unit.
Proceeds—For equipment and working capital. Business
—Lightweight portable structures. Address—c/o Walter
Atlas
-
' ,
- v
• Commercial. Credit Co*
(1/24-25)
Oct. 28 (letter of notification) 3,000,000 shares of
capital
Jan. 6 filed $50,000,000 of senior nptes due 1976.;. Price
stock (par one cent). Price—10 cents per
shqre. Pro- •*
To be supplied by amendment! Proceeds
ceeds—For mining expenses. Office—1154 Bannock
^ For workin
St.,
Denver, Colo. Underwriter — Mid-America Securities, ' capital to finance increased volume of business. Under
writers—The First Boston Corp; and Kidder; Peabody
Inc., Salt Lake City, Utah.
Co., both of New York.
>
..tc. ':
B-Thrifty, Inc., Miami, Fla.
exchange for preferred stock. Proceeds—For payment of
loans, and for capital and surplus. Underwriters—
hank
•Rex Laub and Max
Laubrof Tremonton, Utah, and M. D.
Hemingway Invest¬
Co., of Las Vegas, Nev.
- '
!
Close Mortgage & Loan Co. and Jack
ment
(par
Va.
West, Salt Lake City, Utah.
capital to
Ex¬
Structures, Inc.
(letter of notification) 1,400 shares of preferred
10
share
Industries, Inc., Houston, Texas
(letter of notification) 200,000 shares of com¬
mon stock (par one
cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for
working
•capital, etc. Office — 6006 Harvey Wilson Drive, Hous¬
ton, Texas. Underwriter
Benjamin & Co., Houston,
;
Oct.
B
Birdair
Dec. 29 filed 75,000 shares of common stock
(par $6.50).
Price—To be supplied by amendment.
Proceeds—Fof
W.
Ventures Syndicate, Ltd.
2,450 shares of class A
Big Ute Uranium Corp., Overton, Nev.
Oct. 28 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For mining expenses.
Underwriter—James E. Reed
Co., Inc., Reno, Nev.
:
class
one
Citizens Credit Corp., Washington, , l£ c. '
Sept. 27 (letter of notification) $245,000/of 6% subordl
nated debentures due 1975 (with warrants to
purchas
"
insurance firm.
City Electric Co,
and
Securities, Inc., Denver,. Coloy
America Securities, Inc., Salt Lake City, Utah.
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬
writer—None, sales to be directly by the company or by
talesman of the
2nd
Big Ridge Uranium Corp., Reno, Nev.
Oct. 19 (letter of notification) 9,000,000 shares of common
stock (par one cent). Price — Three cents per share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St., Reno, Nev. Underwriter—Mid
Underwriter—None.
class A
Proceeds—For mining expenses, etc;
Underwriter—Investment Service Co., Denver, Colo.
Business—Electronics.
Office—Princeton Junction, N. J.
two
..
Big Chief Uranium Co., Pueblo, Colo.
Sept. 20 (letter of notification) 1,500,000 shares of non¬
common stock (par 10 cents).
Price—20 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.
and equip¬
of
unit. Proceeds—For general work
Office—505 National Bank of Commer
Corp., Salt Lake City, Utah *
Aug. 10 (letter of notification) 7,000,000 shares of capit
stock
(par one cent)./ Price—Three cents'per l shar
assessable
per
units
per
Cisco Uranium
.
Ar Applied Science Corp. of Princeton
Jan. 16 (letter of notification) 8,200 shares of common
stock (par $2) to be offered to stockholders at rate of
in
Price—$5
South State St., Dover, Del. Underwriter—Mortimer
Bumside & Co., Inc., New York.
change from magneto to automatic dial operation and
to provide working capital.
Office—100 East Main St.,
Myerstown, Pa. Underwriter—Blair & Co., Inc., Phila¬
delphia, Pa.
;
Underwriter—Langley-Howard, Inc., Pittsburgh, Pa.
Los
conversion of the Womelsdorf
offered
notification) 295,000 shares of commo
(par one cent); Price—$1 per share; Proceeds
To acquire property; purchase inventory and for work
ing capital and general corporate purposes. Office—12
Underwriter—None.
For the
—
par (one cent pe
incident to minin
stock
Telephone & Telegraph Co.
(letter of notification) 3,000 shares of 5% cumu¬
stock (par $50). Price—$52 per share.
Proceeds
expenses
Office—810 Deseret Building, Salt Lake CP
Chemical
lative preferred
Pa.
\
Dec. 23 (letter of
Bethel & Mt. Aetna
Dec. 30 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share); Proceeds—To pur¬
chase Hallett diesel engine business of Moore Machinery
For
ing capital.
Building, Charleston,
30 filed
Jan. 5
—
Investment Co., same address.
;
B. S. F.
DesRosiers, Inc., 509 Fifth
Wichita
(letter
1
to be
N. Y.
ment company.
E.
Co.,
/
Charleston
share.
Office—137 Grand
*hare).
J.
—
:
.
camulative
Underwriter
-7.-4
Underwriter—Utah Securities Co., same City.
Aug.
St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,
Ave., New York 17, N. Y.
rr;
Parking Service, Inc..
V'fK/V;
of notification) 120,000 shares of non
voting common stock, class A—(par 50 cents) and 60,00
shares of voting common stock, class B (par 10 cents
;
Co., Birdsboro, Pa. (1/20)
92,636 shares of capital stock (par $1) to
be offered for subscription by stockholders of record
Jan. 20, 1956, at the rate of one new share for each two
shares held.
Price—To be supplied by amendment. Pro¬
ceeds—For investment.
Business—A registered invest¬
N. Y.
Upham &
stock.: Price—At-
capital
Proceeds
share).
Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share,
Proceeds—To set
up a factory and purchase equipment and machinery for
manufacture and sdle of the "grip-lock" driver and
screw.
>
Uranium Corp., Salt Lake City, Utah
Sept. 6 (letter of notification) 12,500,000 shares of non
Price—100% of principal amount.
,
$90,000 to redeem the preferred stock; $18,100 to be
payable to stockholders for advances heretofore made
to company; for payment of current obligations, etc.; and
for working capital.
Office—94-30 166th St., Jamaica,
uiss'
Chaffin
.
Alpha Plastics Corp.
• -
3
Kansas.
Proceeds—To increase inventory and to retire subsidiary
indebtedness.
Underwriter—Van Alstyne, Noel & Co.,
properties; for mining equipment and construction of a
New York.
laboratory and field office; for construction and equip¬
ment of a plant suitable for the processing of beneficiaAr Augusta Newspapers, Inc., Augusta, Ga.
tion of lower grades of manganese ore or Oriskany iron i Jan. 13 filed
10,000 shares of 6% cumulative preferred
ore; and for working capital.
Office—Charleston, W. Va.
stock (par $10) and 91,704 shares of 6V2% convertible
Underwriter—Mitchell Securities, Inc., Baltimore, Md.
preference stock (par $7). Price — To be supplied by
amendment.
Allied-Mission Oil, Inc., Tulsa, Okla.
Proceeds — To purchase 6,735 additional
shares of $100 par common stock of Southeastern News¬
Oct. 3 (letter of notification) 598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
papers, Inc. Underwriter—Johnson, Lane, Space & Co,,
—For acquisition, exploration, drilling and development
Inc., Savannah, Ga.
«f leases. Address—P. O. Box 1387, Tulsa, Okla. Under¬
Automatic Tool Corp.
!
Nov. 18 (letter of notification) 300,000 shares of class A
stock (par 10 cents). Price—$1 per share.
Proceeds—
Kansas^iH;
Cessna Aircraft Co., Wichita,,
Kansas.
chare.
writer—United Securities Co., same address.
p, -I. n"
(letter of notification). 3,840 shares,, ol commo
stock (par $1). Price^$26 per share/ Froceeds
To^
selling stockholder. Office—5800, Pawnee Road, Wichita
Atlas Plywood Corp. (1/24)
Dec. 19 filed $3,000,000 of 5%% convertible subordinated
debentures due 1975 and $3,000,000 of 5% sinking fund
debentures due 1971.
,
Jan.
•
Allegheny Manganese & Iron Corp.
Dec. 28 filed 580,000 shares of common stock, of which
f.'
working capital, etc. Underwriter—Paul%C.'v Kimball
Co., Chicago; 111. Offering—ExpectedTn'JanuaTy.
''
Statement effective Dec. 19.
80%.
ITEMS' REVISED
•
....
• Aerco
Thursday, January 19, 195
t INDICATES ADDITIONS
r since previous: issue"
V
■:;y y;•:
in
.
Nov. 23 filed 37,000 shares of class A
$25).
tional
Price—$38
retail
per
stores.
share.
common
Proceeds—To
Business
Office—5301
—
«
stock
Supermarket.
Northwest 37th Ave.,
writer—None.
(par
addi¬
open
concern.
Miami, Fla.
Under¬
Canuba Manganese Mines, Ltd.
27 filed 500,000 shares of
capital stock (par $1Canadian); Price—$1.50 per share." Proceeds—For ex¬ You can sell your securities and services to your top prospe
ploration of mining properties in Cuba. Office—Toronto, in Chicago and the midwest—professional investors and t
Canada/ Underwriter
Baruch Brothers & Co., Inc., general investing public—when you use the Chicago Trib
Let Tribune sales power sell for you in this rich investme
New York.
/ Oct.
-
_•
New York
Boston
Philadelphia
Pittsburgh
San Francisco
'
'
'
: *
"
Private Wires
to
all
offices
Chicago
Cleveland
Century Acceptance Corp., Kansas City, Mo.'
7 filed $750,000 of
participating junior subordi¬
nated sinking fund 6% debentures due Nov.
1,1970 (with
Nov.
detachable
of
22,500
common
shares
Price—At 100%
of
stock
purchase warrants for
a
market. Get the full details from
your
nearest Tribune representative
total
stock, par $1 per share).
(ip units of $500 each). Proceeds—For
advertising counsel
today!
(Uljicaxju QTributic
common
•t~
-
THE 'WORLD'S. ;,C R E ftj * JS T. NEWSPAPER
^
^
.
Volume 183
Number 5460 :
.
{
The Commercial and Financial Chronicle
.
■'
(389)
•
Continental Copper & Steel Industries, Inc.
,
21 filed 263,771 shares of common stock
(par $2)
being offered for subscription by stockholders at rate of
one
new share for each five shares held Jan.
16,
ceeds
For mining operations. Office
1026 Kearm
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America
Securities, both of Salt
Lake City, Utah.
'
\
Dec.
1956;
rights to expire Feb. 2. Price—$10
—
—
CeKalb-Ogle Telephone Co., Sycamore, III.
(letter of notification) 25,695 shares of common
Pricer—At par <$10 per
share).Proceeds—^To be
,
Dec. 30
stock.
used
..
share. Proceeds—
per
•
To increase inventories and receivables required for ex¬
Cuba
pansion of sales and for other general corporate pur¬
poses.
Underwriters—Allen & Co., P. W. Brooks & Co.
Nov.
Inc. and
by
(Republic of)
of
$2,000,000
Works
bonds
amendment.
Construction Co.
• Cook
Industries, Inc., Dallas, Texas
Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which 107,915 shares
are to be sold
by company and 92,084 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate
purposes.
Underwriter—Cejntral Securities Co., Dallas,
Texas.
Offering—Subsequently withdrawn.
I
due
4%
To
—
Romenpower
Electra
byproducts,
R.
Price—To be supplied by amendment.
Pro¬
ceeds—To selling stockholders.
Underwriter—Allen &
Co., New York.
> "
'
Staats
&
notably furfural.
Underwriters
Co., Los Angeles, Calif.; Carl
—
bonds due in
terest.
To
Jan.
13
filed
$10,000,000
mortgage bonds
Proceeds—For construction program and to
repay
bank loans. Underwriter
To be determined
—
by
pay
Cross-Bow Uranium Corp.
Securities
porated.
of
$235,000 of junior lien
from date of issue without in¬
principal
amount.
Proceeds—
Incorporated, Philadelphia, Pa.
&
Hutzler;
Corp.; Lehman Brothers; Blair & Co.
Bids—Tentatively scheduled for Feb.
Incor¬
city.
15.
Dix Uranium
Corp., Provo, Utah
Aug. 10 (letter of notification) 6,000,000 shares
assessable
NEW
ISSUE
common
(par $1). Price—$6.50 per share.
Proceeds—To
bank loans and debts; and for
working capital.
Under¬
Co., New York,,7
Dinosaur Uranium
Corp., Salt Lake City, Utah
Aug. 15 (letter of notification)
15,000,060 shares of com¬
mon stock.
Price—At par (one cent
per share).
Pro¬
ceeds—For expenses incident to
mining activities. Office
—15 Exchange
Place, Salt Lake City, Utah. Underwrite!
—Western States Investment
Co., same
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Union Securities Corp.; Equitable
Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon
stock. Price—At par (six cents per share). Pro¬
years
Office—40 National Transit
Bldg., Oil City, Pa.
writer—Grover O'Neill &
com¬
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Salomon Bros.
•
reduce
stock
due
1986.
petitive bidding.
~
,
Dennis Run Corp., Oil
City, Pa.
Nov. 28 (letter of
notification) 46,000 shares of
(2/15)
first
of
two
Price—80%
& Co.
Co., Louisville, Ky.
it Dallas Power & Light Co.
non¬
mortgages and for construction cost. Office
—Cherry Hill, near Camden, N. J. Underwriter—Blair
Loeb,
Rhoades & Co., New York, N. Y., and The Bankers
Bond
it Craig Systems, Inc., Danvers, Mass. (2/9)
Jan. 13 filed 355,000 shares of common stock (par
$1), of
which 230,000 shares are to be sold for account of com¬
pany and 125,000 shares for selling stockholders. Price—
To be supplied by amendment.
Proceeds—To purchase
assets of LeFebure Corp.; for working capital; for reduc¬
tion of borrowings or for any other corporate
purpose.
Underwriters—Hemphill, Noyes & Co., W. E, Hutton &
Co. and Lee Higginson Corp., all of New York.
of
to
Del-Valley Corp.
Dec. 13 (letter of
notification)
William
M.
shares
(par five cents). Price—50 cent!
Proceeds—Expenses incident
.
(par 50 cents) to be offered in units of $500 of
debentures and 50 shares of stock. Price—To be
supplied
by amendment (about $550 per unit).
Proceeds — To
build plant to make charcoal brickettes and
chemical
(par $1).
stock
common
share.
1
•
mining oper¬
ations. Office—223 City and
County Bldg., Casper, Wyo.
Underwriter—The Western Trader &
Investor, Salt Lake
City, Utah.
(1/23-27)
stock
stock
common
Minerals Co.,
Casper* Wyo.
of notification) 600,000
Office
Underwriter—
>
.
(letter
assessable
Dec. 30 filed $900,000 of 12-year 5%
sinking fund deben¬
tures due Jan. 15, 1968, and
90,000 shares of common
(1/30-2/3)
125,000 shares of
dial operation.
Sycamore, 111.
.
.
Cooper-Jarrett Inc.
Jan. 10 filed (with ICC)
Street,
.
Delta
Sept. 20
per
Lexington, Ky.
Elm
,
Underwriter—Allen & Co., New York.
Cumberland Corp.,
West
None.
Veterans, Courts and
Price—To be supplied
1983.
Proceeds
for conversion to automatic
—112
(1/23-27)
filed
21
Public
Auchincloss, Parker & Redpath, all of New York.
129
CALENDAR
share).
capital stock.
Price—At par
of
non¬
(five cents
Proceeds—For
per
mining expenses.
Office—290
University Ave., Provo, Utah.
Underwrite*
Weber Investment
Co., Provo, Utah.
Eagle Rock Uranium Co., Salt Lake
City, Utah
Sept. 19 (letter of notification)
30,000,000 shares of non¬
North
—
January 20
(Friday)
February 8
(Wednesday)
.
.
.
B.
S. F. Co
Common
Radiation, Inc.
(Offering to stockholders—no underwriting) 92,636 shares
Citizens &
Southern National Bank
(Offering
Maine Fidelity
Pierce
&
stockholders)
Brooks
Stevens
&
Chemical
(Doollttle
&
& Co.)
The
Carl M.
Loeb,
Co.)
Inc.)
$750,000
share).
(Thursday)
& Co.; W. E. Hutton & Co.;
Higginson Corp.) 355,000 shares
Utah.
and
13
(Monday)
Oct.
Lowenstein (M.) & Sons, Inc
■
(Eastman,
Dillon
&
Preferred
(The First Boston Corp.
Rhoades & Co.;
Western Greyhound Racing, Inc
$990,000
(M.
Sayre & Fisher Brick Co.i*—
and Dean Witter & Co.)
1,200,000 shares
to
up
J.
Reiter
C».)
Common
$2,250,000
Common
s
(Barrett, Herrick
&
Co.,
325,000
Inc.)
January 24
shares
(Tuesday)
(Bids
Atlas Plywood Corp
(Van
Noel
&
$6,000,000
Co.)
Notes
(The First Boston Corp. and Kidder, Peabody & Co.)
(Bids to
(A. P.) Fire Brick Co.».__^_-.______Common
.(Blyth & Co., Inc. and Shields & Co.) 245,007 shares
Northern Pacific Ry
Equip. Trust Ctfs.
Elco
EST)
noon
(Milton
D.
&
Inc.)
Co.,
January 25
(Bids
Pennsylvania
shares
Lisbon
V
Corp
Common
-
*
-
January 30
Clark Oil &
Clark
i
.
Oil
&
&
Co.)
.(Loewi
&
(Allen
Co.)
Western States Refining Co
(J.
-
Barth
&
Northwestern
Bell
-
(Bids
be
to
shares
-
Debens. & Common
Texas Utilities
(Bids
invited)
Co
EST)
February 1
Atlantic
City
Electric
400,000
Debentures
noon
Common
(Bids
$300,000
(A.
J.
Grayson
Metals
(Bids
Co.,
Common
Barney & Co.)
Bell
McEee
(Bids
Corp
be
Telephone Co. of California
offered
under
$40,000,000
be
to
be
to
be
to
Common
Nov.
C.
Bonds
$4,000,000
invited)
$4,000,000
Union
(Bids
to
be
Debens.
$35,000,000
March 29
Power
(Bids to
$14,000,000
(Tuesday)
First
(Thursday)
May 1
(Tuesday)
(Bid*;
to
be
invited)
a
Debentures
Life
Insurance
Co., Baltimore, Md.
filed 20,000 shares of capital stock
(par $10) to
be offered for subscription by class A and class B
stock¬
holders of The Finance Co. of America at
Baltimore on
.
$40,000,000
Federal
Dec. 21
$16,000,000
Columbia Gas System, Inc
3
Philadelphia Saving Fund Building, Phila¬
delphia 7, Pa. Underwriter—Woodcock, Hess &
Co., Inc.
and Boenning & Co., both of
Philadelphia, Pa.
$55,000,000
Preferred
by
National
Office—290L
-Bonds
invited)
indebtedness;
stock
Bonds
be
outstanding
Acceptance Corp.
(letter of notification) 20,000 shares of common
(par $10). Price—$11.50 per share. Proceeds—For
the purchase of a larger amount of
instalment contracts.
Jan.
Bonds
Co
retire
Fine Arts
by
Georgia
subsidiaries; to
Farmers Union.
(Thursday)
invited)
par (in units of $100, $125 and
$120, re¬
Proceeds — To be loaned to or invested in
and to expand the Union's
educational activities. Under¬
writer—None. Debentures to be sold
by salesmen, deal¬
ers and
agents, and by officers, directors and
employees
of the Union, which is often
referred to as
(Tuesday)
New York Telephone Co
Price—At
spectively).
Preferred
invited)
23 filed
$2,300,000 of registered
debentures, series
$500,000 of registered savings debentures, series
B;
and $1,200,000-of registered
savings debentures, series
A;
$1,000,000
invited)
Educational and
Co-Operative Union of
America, Denver, Colo.
Common
invited)
—
Farmer's
1
be
dividends.
Price
At their
respective par
Proceeds—For working capital.
Underwriters—
James E. McNelis and John J.
Rhodes.
invited)
Investing Corp.)
to
insurance
(Thursday)
March 27
Common
exchange offer—to be underwritten
Jackson & Curtis and Mitchum, Jones
& Templeton) $14,377,240 . <
Paine, Webber,
1
March 15
(Bids
Preferred
February 6 (Monday)
(To
be
common
stock
values.
stockholders)
Alabama Power Co
(Offering to stockholders—to be underwritten
Kuhn, Loeb & Co.) 191,884 shares
General
(Wednesday)
$300,000
Co
(Dillon, Read & Co. Inc. and Reynolds & Co.)
Royal
Bonds
Telephone Co. of Pennsylvania-*-
75.000 shares
$3,900,000
Inc.)
to
March 6
Common
&
common
$10,000,000
Mississippi Power Co
shares
Raytone Screen Corp
Reynolds
(Bids
Co.,
filed
(voting)
(par 35-cents); and 300,000 shares-of class
C (non-voting) common stock
(par 50 cents). Of these
shares, 40,000 are to be offered to officers, directors
and
employees of the company. Class A, B and C stock
wilx
also be issued to
policyholders of the Farm & Home
Insurance Co. in exchange for the
assignment of their
/•;-
Common
to
1
240,000 shares of class A
(voting)
stock (par $25
cents); 214,285 shares of class B
(Tuesday)
Co
corporate
Phoenix, Ariz.
Dec.
-Common
Mississippi Power Co
(Wednesday)
CST)
Farm & Home Loan &
Discount
200,000 shares;.*!
Colohoma Uranium, Inc
Chicago & North Western Ry.__Equip. Trust Ctfs.
(Bids
(Offering
(2/15)
general
Bonds
invited)
Corp., Philadelphia, Pa.
purposes.
Office—M. Street, below Erie
Ave., Philadel¬
phia, Pa. Underwriter—S. D. Fuller &
Co., New York, N.Y.
$7,000,000
Fibers Co
(General
Co
(Union Securities Corp. and Smith,
be
March
Common
a.m.
to
Elco
previously issued. Price—At market
(estimated at
$2.12V2 per share). Proceeds — For
(Monday)
EST)
a.m.
stock. Prica
rants
Common
by Smith,
shares
Northern States Power Co.—
$25,000,000
Co.)
(Bids 11
„
Co
11
..j
.
Southern Mining & Milling Co
Securities
83,030
EST)
a.m.
February 29
,
(Tuesday)
Telephone
(Franklin
.
L-O-F Glass
I
$1,102,500
Co.)
/ January 31
„
shares
125,000
11
Texas Electric Service
Common
&
Co.)
common
in
Dec. 28 (letter of
notification) 100,000 shares of common
stock (par 25
cents) to be issued upon exercise of war¬
Common
Cooper-Jarrett, Inc.
•
$9,000,000
(Thursday)
February 27
(Bids
+
25,000
Co.)
&
•
Preferred
invited)
February 28
Preferred
$1,750,000
Refining Corp
.
1.
(Monday)
Refining Corp
(Loewi
Co
be
Kansas Gas & Electric Co
(Offering to stockholders—no underwriting) 1,306,209 shares
I.
j, '.i ■
■ '■}
•• >*.
•" *
i'-.-1'
*' • '•
center.
center
officers of company« Funds are to be
held in escrow
(if
not enough is
received,, funds will be returned to pur¬
chasers of stock).
$25,000,000
Kansas Gas & Electric Co
(Friday)
'»»>.*
"
to
-
share). Proceeds—To acquire title
Lansing, Mich.,-from builder of
Underwriter—None, offering to be made through
shopping
,
$212,500
Bonds
invited)
Electric
(Bids
Uranium
be
Barney
-
Debentures
(Blair & Co. Incorporated) $30,000,000
January 27
Co>
Southern Indiana Gas & Electric Co
(Offering to stockholders—may be underwritten
$4,680,000
Textron American Inc.__
&
February 23
Equip. Trust Ctfs.
EST)
noon
Fuller
to
(Bids
(Wednesday)
Central of Georgia Ry
D-
(Bids
225,000
to
Pennsylvania Electric Co
Common
Blauner
Bonds
..Common
<S-
$6,060,000
Silvray Lighting, Inc
Oct. 14 filed 6,000 shares of
class A
—At par ($100 per
.
$10,000,000
Corp.
.
(Bids
(Wednesday)
be invited)
Uranium Co.
Inc., same address.
Edgemont Shopping Center,
Inc., Chicago, III.
$10,000,000
Dallas Power & Light Co
$50,000,000
Green
M
__Bonds
EST)
noun
&
—
Co.
February 15
k'
Oil
25
—
(Tuesday)
Debentures
Alotyne,
Commercial Credit Corp.__
v
February 14
Central Power & Light
South, Salt Lake City,
Brokerage, Inc., Laa
State
,
mon
$40,000,000
Southern California Edison Co
Price—At par (one cent
per
incident to mining
expenses
(letter of notification) 1,500,000 shares
of com¬
stock (par one
cent). Price—20..cents per share.
Proceeds—For expenses incident to
drilling for oil an£
gas. Office—Colorado
Bldg., Denver, Colo. Underwrite*
—Philip Gordon & Co., Inc., New York:
it East Seventieth Street Sire
Plan, Inc.
Jan. 11 (letter of
notification) 220 units of co-owner¬
ship. Price
$1,000 per unit. Proceeds
To acquire
property. Office—115 Chambers St., New York
7, N. Y.
Underwriter—Sire Plan Portfolios,
Debentures
Co.)
For
Office—214 -East 5th
East Basin
-
stock.
—
Underwriter—Valley
Vegas, Nev..
Common
February
common
Proceeds
activities.
Common
Noyes
Lee
$2,000,000
Bankers Bond
Co.,
Systems, Inc
(Hemphill,
Debentures & Common
(William R. Staats & Co.;
and
Craig
..Bonds
(Allen
&
assessable
$297,000
(Monday)
Cumberland Corp.
Space
Lane,
February 9
Common
(Republic of)
r
-Class A Common
(Johnson,
:
$1,125,000
Corp
Co.)
January 23
Cuba
Inc.)
Co.,
,
Com.
$3,000,000
Life Insurance Co
W.
(P.
to
(Ga.)
l-for-5 basis.
Price—$20.50
per
share.
Proceeds—For
t
Continued
on
page 130
The Commercial and Financial Chronicle
130
.
.
Thursday, January 19, 1956
.
(390)
from page 129
capital and surplus account. Underwriter — None,
Louis Eliasberg, Louis Eliasberg, Jr., and Richard
(President)
Eliasberg
but
A.
committed to purchase any
are
unsubscribed shares.
Fleetwood Motel Corp.,
^
Philadelphia, Pa.
(letter of notification) 24,550 shares of class A
common stock and 4,910 shares of class B common stock
Jan.
5
(both par $1) to be sold in units of one share
common and five shares of class A common.
of class B
Price—$6
Proceeds—To be applied toward purchase of
real estate, and the erection of the building, furnishings
and working capital. Office—Suite 808, 121 South Broads
St., Philadelphia 7, Pa. Underwriter—Woodcock, Hess &
Co., Inc., Philadelphia, Pa.
Fort Pitt Packaging International, Inc.
June 30 filed 300,000 shares of common stock (par 100),.
of which 250,000 shares of for account of company and
60,000 shares of five selling stockholders. Price—$3 per
ihare. Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa
Underwriter—Barrett Herrick & Co., Inc., New York.
unit.
per
Franklin Railway Supply
Fremont Uranium Co.,
Salt Lake City, Utah
Aug. 1 (letter of notification) 15,000,000 shares of
mon
stock.
Price—At par (one cent per share).
com¬
Pro¬
Office—515 Deseret Bldg.,
Underwriter — Moab Brokerage
ceeds—For mining expenses.
City, Utah.
Salt Lake
Co., Western States Investment Co., Potter Investment
Co., Mid-America Securities, Inc. of Utah, and CashinEmery, Inc., all of Salt Lake City, Utah.
Frontier Assurance Co.,
Phoenix, Ariz.
of notification) 2,000 shares of
voting common stock (par $25), to be offered
scription by holders of class A common stock.
$36.50 per share. Proceeds— For capital and
2
Dec.
(letter
Office—4143 N 19th Ave., Phoenix,
class E
for ^subPrice—
surplus.
Ariz. Underwriter—
expenses.
Hammermill
Paper Co., Erie, Pa.
to
be
of
Watervliet
Hammermill
in
Co.
Paper
of 26 shares of
ratio
the
This offer is subject to acceptance by hold¬
vliet stock.
shares (80% of outstanding Water¬
Underwriter—None.
of at least 128,000
ers
vliet stock).
(letter of notification) 23,124 shares of common
13
stock
(par $1).
Price—$10.55 per share.
Proceeds—To
capital. Underwriter—None.
be added to working
Helio Aircraft Corp.,
Canton, Mass.
(par $1).
150,000 shares of common stock
filed
29
Dec.
amendment. Proceeds—For im¬
provements, research, development and working capital.
Office—Metropolitan Airport, Canton (Norwood P. O.),
Mass.
Underwriter—To be supplied by amendment.
Price—To be supplied by
Nov.
Aircraft Corp.,
Price—$5 per share. Proceeds—For administra¬
engineering expenses. Office
Metropolitan
stock.
tive
Canton, Mass.
24,000 shares of common
(letter of notification)
3
Underwriter—
None.
Acceptance Corp., Salt Lake City,
Utah
$300,000 of 25-year 6%
junior subordinated debentures due Oct. 1, 1980. Price—
At par (in denominations of $1,000, $500 and $100). Pro¬
ceeds—For working capital.
Office—837 South Maine
Home
Sept.
(letter of notification)
1
St., Salt Lake City, Utah.
ton & Co., same city.
Finance
Heme
Jan.
Underwriter—Edward L. Bur¬
Group,
Inc., Charlotte, N. C.
(letter of notification)
13
42,750 shares of
common
(par $1).
Price — $6 per share.
Proceeds — For
working capital. Office—119 West 8th St., P. O. Box 779,
Charlotte 1, N. C.
Underwriter—None.
stock
Kometrust Corp.,
Jan.
filed
pand plant. Office—107—13th St.,
Columbus, Ga. Under¬
writer—None.
125,000
working capital.
Hunt
expenses
incident to mining operations.
Wyo. Underwriter—Philip
Inc., New York 6, N. Y.
Office—Kemmerer,
& Co.,
tive preferred stock.
Price—At par ($25 per share) and
accrued dividends. Proceeds—To repay indebtedness and
and Oil, Inc.
(letter of notification) 1,200,000 shares of com¬
stock (par five cents). Price — 25 cents per share.
4
Proceeds—For
cumula¬
Office
Clinton, N. Y.
—
Under¬
Gordon
Corp., Green
River,
Utah
Price—At
stock.
ceeds—For
par
(25
cents
per
share).
Pro¬
incident to mining activities. Un¬
derwriter
Elmer K. Aagaard, 323 Newhouse Bldg.,
Salt Lake City, Utah.
—
Hydro-Loc, Inc., Seattle, Wash.
if General Telephone Co. of California (2/6)
Oct. 25 (letter of notification) 1,674 shares of capital
shares of 4V2% cumulative preferred
stock. Price—At par
($100 per share). Proceeds—For
(par $20), to be offered in exchange for 718,862'
shares, a part of the outstanding 1,437,724 shares, of I: working capital, etc. Office—603 Central Bldg., Seattle
cumulative preferred stock, 5% 1947 series (par $20) on'
4, Wash. Underwriter—Pacific Brokerage Co. of Seattle,
a
share-for-share basis; unexchanged
Wash.
new
preferred
stock to be offered publicly. Price—To be supplied by
Ideal-Aerosmith, Inc., Hawthorne, Calif.
amendment. Proceeds — To repay bank loans.
Under¬
Dec. 16 (letter of notification) 150,000 shares of capital
writers—Paine, Webber, Jackson & Curtis, New York,
stock (par $1).
Price —$2 per share. Proceeds — For
and Mitchum, Jones & Templeton, Los Angeles, Calif.
equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
i
Golden Dawn Uranium Corp., Buena Vista, Colo.
Franklin & Co., Los Angeles, Calif.
Dec. 27 (letter of notification) 3,000,000 shares of capital
Jan. 17 filed 718,862
stock
stock
ceeds
(par five cents). Price—10 cents per share. Pro¬
For mining expenses. Underwriter — Bel-Air
—
Securities Co., Provo, Utah.
v
if Great Lakes Growers, Inc., Lake City, Pa.
9
(letter of notification) $125,000 of 6% 5-year
bonds. Price—At par (in denominations of $100 each).
Proceeds
To refinance existing current indebtedness
and for working capital. Underwriter—None.
Jan.
—
Incorporated Mortgage Investors
Dec. 7
(letter of notification) $233,000 of 8% registered
debentures, due Jan. 1, 1976, and 58,250 shares of com¬
mon
stock (par $1) to be offered in units of one $100
debenture and 25 shares of stock.
Price—$125 per unit.
Proceeds—To be invested in the mortgage investment
Office—1012 H St., N. W., Washington, D. C.
portfolio.
Underwriter—Federal
Indian
Green
(A.
P.)
Fire Brick Co.
(1/24)
Dec. 28 filed
245,007 shares of common stock (par $5).
supplied by amendment.
Proceeds — To
selling stockholders. Office—Mexico, Mo. Underwriters
—Blyth & Co., Inc., and Shields & Co., both of New York.
Price
—
To
be
Guaranty Income Life Insurance Co.
Dec.
30
(letter of notification) 24,000 shares of capital
(par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P, O. Box
2231,
Rouge, La.
Gulf Coast
Underwriter—None.
,Dec.
Jan.
30
1,
Natural
filed
1966.
Gas
Corp., New Orleans, La.
$600,000
of
Price—100%
ceeds—For construction
10-year
of
costs.
5%
principal amount.
due
Pro¬
Underwriter—None.
Gulf Oil
Corp., Pittsburgh, Pa.
1,534,446 shares of capital stock (par $25)
to be offered in exchange for shares of common stock
of Warren Petroleum Corp. in the ratio of four shares of
Jan.
10 filed
Gulf
for each five shares of Warren.
If, prior to the
expiration of the offer, less than 1,753,133 Warren shares
(90%) but at least 1,558,340 shares (80%) are deposited
thereunder, Gulf may at its option accept all shares of
Warren so deposited.
(par
—
For
one
same
York, N. Y.
cent).
Resources
Industries, Los Angeles, Calif.
(letter of notification) 40,000 shares of common
Proceeds—For pay¬
ment of accounts payable; increase in inventory; addi¬
tional working capital, etc.
Office — 4641 Hollywood
Blvd., Los Angeles 27, Calif. Underwriter — Marache,
Dofflemyre & Co., Los Angeles, Calif.
Underwriter—G. F. Rothschild & Co.,
if John Paul Enterprises, Inc.
notification) 115,000 shares of common
Price—At par ($1 per share). Proceeds—For ma¬
terials, working capital and general corporate purposes.
Business—To manufacture and sell a scrubbing brush
and mop and a cigarette pack holder. Office—150 Broad¬
way, New York, N. Y.
Underwriter—None. Milton John
stock.
Poll is Chairman and President.
Jurassic
Aug. 26 (letter of notification)
assessable
ties
the United
States.
investment.
(par $1).
Busineta
the free world out-
Underwriter—I. I. I. Securi¬
Corp., 76 Beaver St., New York, N. Y.
International
Oct.
Proceeds—For
invest in foreign securities of
4
cents).
2,855,000 shares of non¬
Price—10 centi
stock (par one cent).
Proceeds—For expenses incident to mining
—
326 West Montezuma St., Cortex,
Underwriter
Bay Securities Corp., New York,
share.
per
activities.
Colo.
Office
—
New York.
Kention
Electronics
Co., Inc.
Oct. 27
(letter of notification) 60,000 shares of common
stock (par 10 cents). Price—40 cents per share. Proceed!
—To Nicholas J. Papadakos, the selling stockholder. Of¬
fice—129 Pierrepont St., Brooklyn, N. Y. Underwriter—
20th Century Pioneer Securities Co., New York.
Lander
Valley Uranium & Oil Corp.
Aug. 15 (letter of notification) 3,000,000 shares of com¬
(par two cents).
Price—10 cents per share.
expenses incident
to mining activities.
stock
Proceeds—For
Office—c/o Warren E. Morgan, President, 1705 East First
South, Salt Lake City, Utah. Underwriter—Empire Se¬
curities Corp., Las Vegas, Nev.
Jan.
Mortgage & Title Co.
(letter of notification) 60,412 shares of common
stock (par 65 cents) to be offered first to stockholders.
Maxwell M. Powell
(Vice-President) and Rudolph J.
11
Welti
will purchase up to
(a director)
shares each of any unsubscribed shares.
Proceeds
—
For working
total of 10,000
Price—$1.50 per
a
capital.
Office
—
115
Underwriter—None.
Life Underwriters Insurance
Co., Shreveport, La
shares of common stock (par 25
cents) to be offered for subscription by present stock
holders of record July 21, 1955 on the basis of one ne
share for each four shares held; rights to expire 45 day
from the commencement of the offering, after Whi
unsold shares will be offered to public. Price—$8.75 p
Sept. 26 filed 100,000
share to public. Procee
working capital. Underwriter
share to stockholders; $10 per
—For
expansion
None.
•
and
f
Lisbon
Uranium Corp.
Dec. 26 filed
to be
(1/27)
1,306,209 shares of common stock (par 150
subscription by common stockholder
offered for
of record Jan. 27,
1956, at the rate of three new share
(with an additional subscriptio
for each ten shares held
privilege);
Feb. 10. Price—$4 pe
advances by Atlas Corp. o
rights to expire on
Proceeds—To
share.
repay
approximately $4,039,000, which has or will be used t
acquire option to purchase the so-called Barrett claim
and pay balance of purchase price; for exploration an
drilling expenses, and for other corporate purposes. Of
fice—Salt
Lake
City, Utah.
Underwriter—None, bu
Wasatch Corp., a subsidiary of Atlas Corp., will pur
chase any unsubscribed shares.
Uranium Co.
Sept. 12 (letter of notification) 3,000,000 shares of capi
tal stock. Price—At par (10 cents per share). Procee
—For
mining expenses. Office—440 West 3rd North, Sal
Utah. Underwriter—Skyline Securities, In
Lake City,
Denver, Colo.
if Los Gatos Telephone Co., Los Gatos, Calif.
9 (letter of notification) 18,737 shares of commo
stock (par $10). Price—$16 per share. Proceeds — Fo
equipment and improvements. Office — 11 Montebell
Way, Los Gatos, Calif. Underwriter—None.
Jan.
Metals Corp.
filed
400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican subsidiary,
and to discharge note. Office — Houston, Tex. Under¬
writer—Gearhart & Otis, Inc., New York.
Uranium & Oil Co.
(letter of notification) 3,000,000 shares of non
assessable capital stock (par one cent). Price—10 cen1
Oct.
6
share. Proceeds—For expenses incident to minin
operations. Office — Simms Bldg., Albuquerque, N.
Underwriter—Mid-America Securities Inc. of Utah, S
per
•
Investors
Inc., New York
Aug. 23 filed 200,000 shares of capital stock
of
common
Lake City,
New York.
Price—At market.
.
Minerals, Inc., Cortez, Colo.
Lost Canyon
Circuits, Inc., Belleville, N. J.
Nov. 10 filed-100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price—
At par ($5 per share). Proceeds—For general corporate
purposes.
Underwriter — Alexander Watt & Co., Inc.,
—To
Price—At par ($4 per share).
Jan. 10 (letter of
address.
Insulated
"side
Rassco Israel Corp.,
Jeb
Little Mac
3,000,000 shares of com¬
Corp., N. Y.
Dec. 12 (letter of notification) 600,000 shares of com¬
mon
stock (par one cent).
Price—50 cents per share.
Proceeds—For mining expenses.
Office—42 Broadway,
New
—
city.
Corp.
expenses
Mineral
International
debentures
Co.,
Mining
Price—10 cents per share.
incident to mining activities.
Office—205 Byington Building, Reno, Nev. Underwriter
—Richard L. Dineley, same address.
Proceeds
•
Sept. 14 filed $2,000,000 of 5% sinking fund convertible
debentures due Sept. 1, 1965 to be sold to Brandel Trust.
Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.
Gulf
stock
mon
same
.Leaseholds, Inc., Houston, Texas
Uranium
(letter of notification)
Inland
stock
Baton
Sept. 6
Investment
Monument
Underwriter
Broadway, New York, N. Y.
expenses
Co., Ltd.
Dec. 28
Aug. 22 (letter of notification) 1,200,000 shares of com¬
mon
Aviv, Israel.
share.
Uranium
Investment
New York.
if Lawyers
Service, Inc.
(letter of notification) 920 shares of 6%
writer—None.
Hills Mining
Gas
6
Jan.
for
—Tel
mon
Inc., Montgomery, Ala.
shares of common stock (par $1).
Price—$5 per share. Proceeds—To expand operations
of subsidiary and increase investment therein.
Under¬
5
Israel-Rassco
Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S. funds), payable
in State of Israel Independence Issue Bonds only. Office
and
Airport, Canton (Norwood P. O.), Mass.
369-375 DeKalb Ave., Brooklyn 5,
& Co., New York.
—
Underwriter—Kamen
stock.
Co., Waterville, Me.
(C. F.)
Hathaway
Jan.
Y.
"Isras"
stock for each 25 shares of Water¬
common
Office
ment, etc.
■
166,400 shares of common stock (par $2.50)
offered in exchange for shares of capital stock
Industries Corp.
(letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬
Oct. 12
N.
Dec. 20 filed
Household Gas
^ Gas Light Co. of Columbus
Jan. 12 (letter of notification) 25,000 shares of common
stock (par $5).
Price—$12 per share. Proceeds—To ex¬
mon
Brokerage
Corp., Ogden, Utah.
writer—None.
None.
Jan.
Intermountain
Underwriter—United
Helio
(letter of notification) 20,000
19
mining
Utah.
Co.
shares of common
stock (no par) to be offered for subscription by stock¬
holders.
Price—$10 per share.
Proceeds—To reduce
unsecured bank loans and for working capital.
Office—
927 Market St., Wilmington, Del.
Underwriter—None,
But C. W. Floyd Coffin and Herman F. Ball have agreed
to purchase all shares not subscribed for by stockholders.
Oct.
of capital
Proceeds
Office—E-17 Army Way, Ogden,
Aug. 10 (letter of notification) 8,000,000 shares
stock.
Price—At par (two cents per share).
—For
Plastic
International
Ogden, Utah
Half Moon Uranium Corp.,
-
Continued
Maine
Nov.
10
Utah.
Fidelity
filed
Price—$25
purposes.
Life Insurance Co. (1/20)
shares of capital stock (par $10
45,000
per share.
Proceeds—For general corpora'
Office — Portland, Me. Underwriter—P.
Brooks & Co., Inc.,
Manhattan
New York.
Mercury Corp., Denver, Colo.
(letter of notification) 1,500,000 shares of com
(par one cent), of which 1,400,000 shares ar
for account of company and 100,000 shares for certai
stockholders. Price—20 cents per share. Proceeds—Fo
Oct. 26
mon
stock
mining expenses.
Office—374 Denver Club Bldg., Den
Colo. Underwriters—General Investing Corp., Ne
York; and Investment Service Co., Denver, Colo.
ver,
Volume 183
Number 5460
The Commercial and Financial Chronicle
...
*
(391)
Mansfield
Nov., 4
ferred
Telephone Co., Mansfield, Ohio *.*■
6,000 shares of 5% pre¬
Price—At par ($50 per share). Proceed*
North
Pittsburgh Telephone Co., Gibsonia, Pa.
(letter of notification) 4,000 shares of common
be offered for subscription
by stockholders.
Price—At par ($25 per share). Proceeds—To be used to
(letter of notification)
stock.
Jan.
—To reduce short term indebtedness and for construction
Office—35 Park Avenue East, Mansfield, Ohio.
program.
Allegheny County, Pa.
Manufacturers Cutter Corp.
(letter of notification) 300,000 shares of class A
stock. Price—At par ($1 per share). Proceeds—
To repay loans, and for new equipment and working
capital. Business—Cutting tools. Office—275 Jefferson
'St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
1996.
To' repay advances from American
Telegraph Co., the parent, and for im¬
provements and additions to property. Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; The
First Boston Corp.; Kuhn, Loeb & Co.
Bids—Expected
city.
^Oct. 6 (letter of notification) 172,500 shares of
'For
(par
soil
a
10
mining
cents).
Price—$1
and
expenses
conditioner.
cisco, Calif.
Office—681
share.
per
expenses
Market
■
to be
common
to
•
r
—
.
1956
on
held
Five
.
the basis
of one
share
new
for
each
&
Dec.
10
mining expenses. Office—623 First National Bank
Building, Denver 2, Colo.
Underwriter — Globe Secu¬
rities Corp., Jersey City, N. J.
.
Vernon
Mining & Development Co.
//$-
Nov.
^JJov. 16 (letter of notification) 300,000 shares of com¬
stock, vrPrice—At
mon
.A
For
mining
($1 per share). Proceeds—
Office—422 Continental, t$ank'
expenses.
-
1 Bldg., Salt Lake City, Utah. Underwriter
Hackett
Investment
Co.,
—
Continental
701
city.
same
Bank
.
^National
Lithium
Corp.,
u
.
Ackerson-
'BJdg.,
"
'
city.
same
Underwriter
•
'.
Investment
—
Service! Co.,
Leo
mon
tees.
/
••
.
..
,
National Old Line Insurance Co.
Nov.
15
filed
$2)
50,000
shares
of
class
.
A
'
^»Ark. Underwriter—Equitable Securities Corp.. TNfa«b/ville, Tenn., and New York, N. Y. Offering—Indefinitely•,
the basis of
postponed.
.'Jv
if National Tank Co., Tulsa, Oklahoma
Jan. 11 (letter of notification) 4,500 shares of
corrfjmon
stock (par $1).
Price—$21.50 per share. Proceeds^-To
selling stockholders. Office—Sand Springs Road and]31st
W. Avenue,
Tulsa, Okla.
Underwriter — Schneider,
Bernet & Hickman, Inc., Dallas, Texas.
Pierce
7
Sept.
(letter of
assessable
share.
notification)
common
stock
(par
Utah!
■
300,000
shares of non¬
cent). Price—$1 per
incident to miningf ac¬
one
Proceeds—For expenses
tivities. Underwriter—Western Bond & Share Co., Tulsa,
Okla.
'
.
Nevada Mercury Corp., Winnemucca, Nev.
Sept. 16 (letter of notification)
mon
.
stock
(par
Proceeds—For
one
cent).
expenses
Office—Professional
incident
Building,
to
mining
Winnemucca,
activities.
Nev.,4 Un¬
derwriter—Shelley, Roberts & Co., Denver. Colo.
:
if New South Textile Mills, Jackson, Miss. *
Jan. 13 filed 2,298,000 shares of common stock (par $1).
Price—$3 per share. Proceeds—For acquisition of #rop.
erties
To
be
and
general
named
if Nicholson
corporate
purposes.
Underwriter—
by amendment.
(W. H.)
& Co., Wilkes-Barre, Pa.
Jan. 16 filed 20,000 shares of common stock (par $5).
Price—$25 per share. Proceeds — For working capital.
•
,
Underwriter—None.
&
be
offered
Stevens
to
Chemical
„■
—710 Ohio
&
Co.,
St.; Buffalo 3, N. Y.
city.
Underwriter—Doolittle
same
Pipelife Corp., Tulsa, Okla.
29 filed -115,000 shares of common stock (par $1).
Price—$4 per share. Proceeds—To pay current accounts
and notes payable; for research and development; and
corporate
purposes.
Underwriter
—
North
Prudential
Loan Corp., Washington, D. C.
111,000 shares of 44-cent cumulative prior
preferred stock (par $5) and 55,500 shares of 10-cent par
Nov. 22 filed
common
stock
preferred stock
to
be
and
offered
in
of
banks, to be used to
company's seventh aluminum
Reynolds Mining & Development Corp.
22 filed
1,500,000 shares of common stock (par
one
cent).
Price—50 cents per share.
Proceeds—For
working capital and mining expenses. Office — Moab,
Utah.
Underwriter
—
The Matthew
Corp., Washington,
D. C.
20
Airlines,
filed
Inc., Miami, Fla.
967,500 shares of common stock
(par 10
cents) to be offered for subscription by stockholders at
the
rate
of
one
share for each four shares held
npw
(with an oversubscription privilege). [The company has
obtained from certain stockholders waivers of
subscrip¬
tion rights applicable to not less than
100,000 shares and
such shares
of
the
plied
are
to be offered to the general public free
stockholders'
prior
rights.]
Price—To
be
sup¬
by
amendment.
Proceeds—To repay bank loan
working capital. Underwriter—Eisele & King,
Libaire, Stout & Co., New York.
and
v
-
,
for
Rogers Corp., Rogers, Conn.
Oct. 3 (letter of notification) a minimum of
5,883 shares
and a maximum of 7,453 shares of class B
common
stock to be offered to stockholders on a basis of
one
share for each four shares held.
Proceeds—To
Price—($29 per share).
working capital due to losses
replenish
sustained in recent flood.
Underwriter—None
Rowan Controller Co.,
Dec. 20 (letter of
.
Baltimore, Md.
notification) 6,935 shares of
common
stock
(par $10) to be offered for subscription by stock¬
Price—$14 per share.
Proceeds—For develop¬
ment of new products and
working capital re. manufac¬
ture and sale of electrical controllers.
Homewood
Ave., Baltimore, Md.
Office—2313-2315
Underwriter—None.
if Royal McBee Corp., New York (2/1)
12 filed 191,884 shares of common
stock (par $1)
to be offered for subscription
by common stockholders
of record Jan. 31, 1956 at the rate of one new
share for
units
one-half share
of
each
of
one
share
common
of
stock.
shares
seven
Price—To
be
held;
supplied
equipment
Loeb &
Co., Tulsa, Okla.
Pittman Drilling & Oil Co., Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par $5) and 60,000 shares
of common stock (par 10 cents) to be offered in units of
one share of
each. Price—$5 per unit.
Proceeds—For
payment of note and working capital. Office—420 Citi¬
zens National Bank Bldg.,
Independence, Kan. Under¬
writer—Dewitt Investment Co., Wilmington, Del.
;♦
commercial
Jan.
Nov.
American Securities
from
construction
holders.
(1/20)
Corp.
6 (letter of notification) 27,000 shares of class B
(non-voting) capital stock (par $3.33%).
Price — $11
per share. Proceeds—To ten selling stockholders. Office
general
1,500.000 shares of gomcents per share.
Price—20
share for each 3%
to
Jan.
///|,,
Natural Power Corp. of America, Moab,
one
shares
.
Nov.
Price—15 cents per share.
to mining activities.
shares held; unsub¬
public.
Price—$14 per
share to stockholders and $15 to public.
Proceeds—To
finance construction of an addition to plant re. printing
of lithographed labels for cans, bottles, boxes, etc. Office
—311 West Depot St., Bedford, Va.
Underwriter—Scott,
Horner & Mason, Inc., Lynchburg, Va.
scribed
"
■
Underwriters—Dillon, Read & Co. Inc.
Reynolds & Co., both of New York.
and
incident
19'
/
.
reduction plant.
com¬
Label Co., Inc., Bedford, Va.
(letter of notification) 8,000 shares of common
stock to be offered for subscription by stockholders on
and
cor¬
institutional investors and the borrowing
$15,000,000
finance
Office—206 N. Virginia Street, Reno, Nev.
Dec.
—
'
of
Piedmont
jftock
50,000 shares of class B common' fjltock
"(par $2).. Price—To be supplied by.amendment. 'Proceeds
To selling stockholders.
Office — Little Rock,
■
expenses
general
filed
gage bonds to
Dec.
if Piasecki Aircraft Corp., Philadelphia, Pa.
Jan. 17 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
repay outstanding notes and for working capital. Under¬
writer—Emanuel, Deetjen & Co., New York.
^
common
11
Riddle
(par three cents).
Proceeds—For
(2/1)/
800,000 shares of cumulative preferred
stock, series A (par $50). Price — To be supplied by
amendment.
Proceeds—From this sale, together with
funds to be received from sale of
$60,000,000 first mort¬
Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.
.
if National Motel Credit Corp.
F'k'fl
Jan. 13 (letter of notification) 5,000 shares of
common
stock. Price—At par ($10 per share). Proceeds—To
pro¬
vide funds for operating expenses for the first year'; and
for working capital.
Underwriter—None.
■
Jan.
Underwriter—None.
stock
unit.
* Reynolds Metals Co.
3
Proceeds—For
per
Underwriter—None; to be ofltred by
Rich, Robert Kissel and Sidney M. Gilberg, as Trus¬
Products, Inc., Reading, Pa.
Uranium, Inc., Reno, Nev.
Aug. 4 (letter of notification) 2,000,000 share's of
A
Price—$2
pany.
Pann-Utah
Bjdg.,
Denver, Colo.
Price—
porate purposes.
Uranium, Inc.
(letter of notification) 3,857 shares of common
(no par), of which 2,000 shares are to be offered
for subscription by existing stockholders at $12 per
share, and 1,857 shares to non-stockholders who are residents of Pennsylvania at $14 per share. Proceeds—For
purchase of mill. Office — 501 Crescent Ave., Reading,
Pa.
Denver, Colo.
Dec. 27 (letter of notification) 300,000 shares of con&non
6tock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses.
Office-— 556 Denver Club
-
stock.
agreement to be offered to certain mem¬
bers of the general public who are
acceptable applicants
and who are to become active
policyholders in the com¬
stock
.
par
common
procurement
17
Penn Precision
.
Mt.
St.,
>
—
For
Vark
Republic Benefit Insurance Co., Tucson, Ariz.
Sept. 30 filed 150,000 units in a dividend trust and stock
Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — Newhouse
Bldg., Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.
Oct.
—
.
Hacienda, Inc., Inglewood, Calif.
filed 4,000,000 shares of
19
..
shares
Paria
»
Office
purposes.
($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilities
and for general corporate
purposes.
Underwriter—Wil¬
son
& Bay ley Investment Co.
t
•
-
.
Exploration Co., Denver, Co!o.
;
^
Dec. 9 (letter of notification) 300,000 shares of common
stock (par five cents). Price—$1 per share./ Proceeds—
corporate
At par
Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake City, Utah.
Underwriter—
Guss Securities Co., Salt Lake City, Utah.
Monitor
general
Reno
on
Jam/'5 sold to the public for the ac¬
selling stockholders. Price—To stockholders
$37.50 per share; and to public $42.50 per share. Pro¬
ceeds—For capital expenditures.
Underwriter—Morgan
Stanley & Co., New York.
Metals
Street, New York, N. Y.
Yonkers, N. Y. Underwriter—None.
were
International
Office—161 West 54th Street, New York,
Underwriter—Choice Securities Corp., 35 East
Y.
for
count of two
Pacific
Estate
it Refined Syrups & Sugars, Inc.
Jan. 12 (letter of
notification) 5,240 shares of common
stock (par $5).
Proceeds—Totaling $34,560 to be used
(rights to- expire on Jan. 23); the remaining 100,000
shares
Co., Cincinnati,
Ohio.
Clay-
313,845 shares of common stock (par 83%
cents), of which 213,845 shares are being offered for
subscription by common*stockholders of record Jan. 4,
Silica Co., Cincinnati, Ohio.;
]
(letter of notification) 3,000 shares of 8% cumu¬
lative preferred stock. Price — At par ($50 per share).
Proceeds—For processing plant, heavy equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,
W. E. Hutton &
F.
15 filed
-Mohawk
—
Blair
—
of
of
14
12th
Proceeds—For
Outboard, Marine & Manufacturing Co.
Dec.
Oct. 3
Underwriter
Underwriter
sale
capital, etc.
N.
basis; rights to
share.
per
Villa, Inc., Las Vegas, Nev.
(letter of notification) 3,000 shares of capital
itock.
Price—At par ($100 per share).
Proceeds—For
South 5th St., Las Vegas, Nev, Underwriter—Hennon &
Roberts, Las Vegas, Nev. u
per
Ohio.
program.
l-for-10
a
Aug. 16
share. Proceeds — For expenses incident to
mining activities./Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.
/
v
on
Ottilia
>
cent).' Price
10
Price—$23
baugh & Co., Harrisburg, Pa.
Mobile Uranium & Oil Co., Salt Lake City, Utah
Aug. 22 (letter of notification) 5,500,000 shares of non¬
one
Jan. 31.
on
construction
if Midland General Hospital, Inc., Bronx, N. Y.
Jan. 12 filed 24,120 shares of common stock (no
par)
and 30,000 shares of $6 dividend preferred stock
(no
par). The company does not intend presently to sell
more stock than is required to raise, at
most, $2,700,000.
Price
$100 per share. Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.
cents
(letter of notification) 12,157 shares of common
being offered for subscription by common stock¬
expire
and
distribution
Clearing House, Inc.
(letter of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and 135,000 shares
of common sto„ck (par five
cents) to be offered in units
of two shares of preferred and one share of common
stock.
Price—$2.05 per unit.
Proceeds—For working
19
holders of record Jan.
—
"
and
Real
Sept.
Ohio Water Service Co.
stock
"
,
working capital. Busi¬
motion,picture theatre
screen paint.
Office —165
Clermont Ave., Brooklyn 5, N. Y.
Underwriter—A. J.
Grayson & Co., Inc., Hempstead and New York, N. Y.
ness—Manufacture
Co., New York.
Dec.
■
.
To pay current liabilities and for
Jan. 31.
Underwriter—Philip Gordon &
Underwriter—None.
assessable capital stock (par
about
or
ceeds—For exploration and development and other
gen¬
eral corporate purposes.
it Midland Cooperatives, Inc., Minneapolis, Minn.
Jan. 9 (letter of notification)
$250,000 of 5% subordinated
debenture notes.
Price—At par
(in denominations of
:$100 each). Proceeds — For redemption of preferred
stock, series C and D. Office—739 Johnson St., N. E.
"•
on
fat
«
Raytone Screen Corp. (2/1)/
Jan. 9 (letter of
notification) 100,000 shares of common
stock (par 10 cents).
Price—$3 per share.
Proceeds—
Nov. 8
*—To purchase merchandise for resale. Office—3820 Al- /
:meda Road, Houston, Texas. Underwriter—None.
*
i
•
& Oil Corp., Farmington, N. M.
(letter of notification) 2,000,000 shares of common
stock (par five cents). Price—15 cents
per share.
Pro¬
Fran¬
■if Members Merchandise Mart, Inc., Houston, Tex.
1
Jan. 10 (letter of notification)
24,000 shares of class B
common stock.
Price—At par ($5 per share). Proceeds
'Minneapolis, Minn.
—
Oak Mineral
selling
San
St.,
^
received
filed
screens
Proceeds—
incident
Proceeds
Telephone &
Marl-Gro, Inc., San Francisco, Calif.
-stock
Inc., Melbourne, Fla. (2/8)
150,000 shares of class A common stock
Price—$5 per share. Proceeds—To retire
unsecured notes; to expand
facilities; for working capi¬
tal, etc. Underwriter—Johnson, Lane, Space & Co., Inc.,
Savannah, Ga.
13
(par 25 cents).
Telephone Co. (1/31) % ;
$25,000,000 of 40-year debentures due Feb. 1,
Jan. 6 filed
common
general corporate
Straus, Blosser & McDowell,
—
if Radiation,
Jan.
;
Northwestern Bell
Oct. 18
Proceeds—For
Chicago, 111.
outstanding. Office—Gibsonia,
Underwriter—None.
•
unit.
per
Underwriter
purposes.
to
reduce the demand notes
Underwriter—None.
;same
Price—$6.75
6
» stock-
131
rights
by
and working
Co., New York.
to
expire
amendment.
capital;
on
Feb.
14.
Proceeds—For
Underwriter—Kuhn,
San Juan Racing
Association, Inc., Puerto Rico.
Sept. 27 filed 4,000,000 shares of common stock (par 50
cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per
share, of 200,000 shares for subscription by
1955, on a two-for-one
basis; and (2) a public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
stockholders of record April 30,
derwriter—None.
Hyman N.
City, is Vice-President.
Glickstein, of New York
Continued
on
page
132
132
The Commercial and Financial Chronicle
(392)
Continued from page
-
(letter of notification) 925,000 shares of noncommon stock (par one cent). Price—12 cents
19
Proceeds—For expenses incident to mining
—
718 Kittredge Bldg., Denver, Colo.
Underwriter—Shelley-Roberts & Co., Denver, Colo.
share.
per
Office
activities.
<
Development Corp.
Sandia Mining &
Proceeds—For construction and op¬
extraction plant.
Underwriter—To
by amendment. L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.
of 6%
be named
susessable
3,000,000 shares of capital
■lock (par one cent).
Price—10 cents per share. Pro¬
ceeds
For mining expenses. Office — Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
Sept 9 (letter of notification)
Summit Springs Uranium
Corp., Rapid City, S. D,
1,200,000 shares of common
stock (par 10 cents). Price—25 cents per share. Proceeds
—For expenses incident to mining operations. Office—
Harney Hotel, Rapid City, S. D. Underwriter—Morris
Brickley. same address.
Oct. 3 (letter of notification)
Underwriters Factors Corp.
Dec.
7
(letter of notification) 29,500 shares of 6%%
participating convertible preferred stock (par $10) and
2,950 shares of common stock (par one cent) to be
Superior Uranium Co., Denver, Colo.
—
Inc., Las Vegas, Nev.
Souci Hotel,
Sans
shares of common stock (of which
1,097,529 shares are to be offered for subscription by
stockholders at rate of 1% shares for each share held;
20,471 shares are to be issued in payment for claims of
individuals and firms aggregating $30,471; and
seven
shares are to be offered by George E. Mitzel,
President of company). Price—$1 per share. Proceeds
—For construction of new facilities; to pay off notes; and
for working capital. Underwriter—None.
200,000
Fisher Brick Co. (1/23-27)
Sept. 30 filed 325,000 shares of capital stock (par $1).
Price—To be supplied by amendment. Proceeds — For
prepayment of outstanding 5V2% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
writer — Barrett Herrick & Co., Inc., New York City.
Sayre
&
Science
Nov.
of New Jersey,
Press
Inc.
(letter of notification) 15,620 shares of common
(no par).
Price—$5 per share.
Proceeds—For
building, equipment, working capital, etc. Office—Spur
518, a mile west of the Borough of Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.
Route
Shangrila Uranium Corp.
30 (letter of notification)
mon
stock.
Price—At par ($1
300,000 shares of com¬
per share).
Proceeds—
For mining expenses.
Underwriter—Western States In¬
vestment Co., Tulsa, Okla.
Dec.
of America
Sheraton Corp.
Oct. 31 filed $15,000,000 of
6V2% cumulative income sub¬
Nov. 1, 1980 to be offered
initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each
25 shares of stock then held and (b) to employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds
—For general corporate purposes. Office—Boston, Mass.
Underwriter—None, but Sheraton Securities Corp., a
subsidiary, will handle stock sales.
•
debentures
ordinated
due
t
Shumway's Broken Arrow Uranium, Inc.
(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
For mining expenses. Office—Moab, Utah, Underwriter
—Ackerson-Hackett Investment Co., Salt Lake City,
etock
Box
and
Silvray Lighting, Inc. (1/24)
16 filed 225,000 shares of common stock
Dec.
(par 25
cents), of which 75,000 shares are to be for the account
of the company and 150,000 shares for the account of
certain selling
Proceeds
capital.
1
stockholders.
be
To
—
Price—To be $3 per share.
expansion and working
Milton D. Blauner & Co., Inc.,
used
Underwriter
—
N.
Swank Uranium Drilling & Exploration Co.
for
New York.
Southern
Mining & Milling Co. (1/31)
j Sept. 14 (letter of notification) 300,000 shares of common stock (par 10 cents).
Price—$1 per share. Proceed!
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter — Franklin Securities Co.,
Atlanta, Ga.
'
"
'
•
Southern
Oxygen Co., Bladensburg, Md.
Dec. 29 filed $1,250,000 of convertible subordinated de¬
bentures due Feb. 1, 1966.
Price — To be supplied by
l"amendment.
Proceeds
For capital expenditures and
!
working capital. Underwriters—Johnston, Lemon & Co.,
Washington, D. C., and Union Securities Corp., New York.
—
Offering—Expected latter part of February.
Southwest Gas
Dec.
;
■-
filed
23
44,208 shares of
Price —$11 per share.
and for
new
common
stock
(par $1).
Proceeds —To repay bank loans
Underwriter—First California
construction.
Co., Inc., San Francisco, Calif.
-
Spurr Mining Corp.
r
Y" >
(letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—For mining ex¬
penses. Underwriter—Cavalier Securities Co., Washing¬
ton, D. C.
V;
v
Nov. 9
•Etock.
<
-
• Stratapark, Inc., Spokane, Wash.
Jan. 9 (letter of notification)
98,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To construct a commercial unit in Spokane and for
purpose of
demonstrating the practicability of the invention upon
which it
Peyton
is based;
Bldg.,
and for working capital.
Spokane,
A. Sanders and Henry
Strategic Metals,
Jan.
mon
4
Wash.
Underwriters—Vaughn
Vorlicky, both of Spokane, Wash.
Inc., Tungstonia, Nevada
1,200,000 shares of
(letter of notification)
stock.
Price—25
cents
com¬
share.
Proceeds—For
incident to mining operations.
Reynolds & Co., Salt Lake City, Utah.
Underwriter—
per
expenses
R.
Office—716
Sulphur Exploration Co., Houston, Texas
21 filed 600,000 shares of 6% convertible noncumulative preferred stock to be offered for
subscrip¬
tion
by
ierred
common
share for
stockholders
each
on
common
the basis
share
of
held.
one
pre-
Price—A!
preferred stock and
$100.01 per unit.
—
working capital. Office
York, N. Y. Underwriter—New
Securities
Co., 90
51
York
—
Wall St., New York,
Y.
common
drive-in
Price—$1 per share..
outdoor
motion
Proceeds—To
picture
theatres
Co.
&
on two sites to be
purchased. Office—215 East
St., New York 51, N. Y. Underwriter—L. J. Mack
Co., Inc., New York.
U.
S. Automatic
Machinery & Chemical Corp.Y*
(letter of notification) 300,000 shares of class A
stock (par 10 cents). Price—$1 per share. Pro¬
ceeds
For general corporate purposes.
Office—8620
Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135
Broadway, New York.
/■
Nov.
4
common
—
Inc., Denver, Colo.
Target Uranium Co., Spokane, Wash.
Aug. 12 (letter of notification) 1,000,000 shares of non¬
stock (par five cents).
Price—20 cents per
share.
Proceeds
For mining expenses.
Office — 726
Paulsen Bldg., Spokane, Wash.
Underwriter — Percy
Dale Lanphere, Empire State Bldg., Spokane, Wash.
U.
S. Suburban
Estates, Inc.
of notification) 300,000 shares of com¬
(par five cents).
Price—$1 per share.
Pro¬
ceeds—For purchase of land, payment of
mortgage, de¬
velopment of lake area and other corporate purposes.
Dec.
—
mon
Tenison
29
(letter
stock
Office —c/o
Drilling Co., Inc., Billings, Mont.
(par 100).
Price—$1 per share.
Proceeds—For drilling test costs,
payment of notes and accounts payable and loans and
for general working capital.
Underwriter — Carroll,
Schwartz, Gilman & Gold, 147 —16 Ja¬
Ave., Jamaica, L. I., N. Y.
Underwriter—Robert
V. Maguire Co., New York, N. Y.
Dec. 12 filed 400,000 shares of common stock
maica
Kirchner
Universal Service Corp.,
Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price — $2.50 per share. Proceeds — For equip¬
ment, mining costs, oil and gas development, and other
&
Texas
Jaquith, Inc., Denver, Colo.
American
Oil Corp.
(letter of notification) 600,000 shares of com¬
mon stock
(par 10 cents). Price — 50 cents per share.
Proceeds—For drilling expenses, etc. Office—216 Cen¬
tral Bldg., Midland, Tex. Underwriter—Kramer, Woods
& Co., Inc., Houston, Tex.
Nov.
corporate
3
Texas
Nov.
Eastern Transmission
filed
30
190,000 shares
of
stock
Texas
Co., Dallas, Tex.
400,000 shares of
Proceeds—For
subsidiaries
further investment in
and
for
other
corporate
(EST)
a.m.
Jan.
on
stock
(no par).
common
stocks
of
amendment.
Jan.
8834, Britton Station, Oklahoma City 14, Okla.
writer—S. M. Stauffer, President of company.
Nov.
Proceeds—To
finance
non-textile
one
share of each class of stock.
Traveler
In
units
per
working
Sept. 14
working
Office — 233 South Beverly Drive,
Calif. Underwriter—Real Property In¬
vestments, Inc., same address.
Schenkosky, Wichita, Kansas.
common
stock.
100,000
r
Racing, Inc.
1,950,000 shares of
(2/13-17)
stock (par one
cent), of which 1,800,000 shares are to be offered pub¬
]icly. Price—$1.25 per share. Proceeds—To purchase assets of Arizona Kennel Club, and for working capital
and other general corporate purposes. Office—Phoenix,
common
Underwriter—M. J. Reiter Co., New York.
Western States
Refining Co.
(1/30)
Dec. 14 filed $1,050,000 10-year 6% sinking fund debentures due Jan. 1, 1966, and 105,000 shares of common
stock (par 25 cents) to be offered in units of $50 of
non¬
($1 per share).
working capital, etc.
Wash.
19 filed
Ariz.
Price—At par
Proceeds—For repayment of loans,
Smith Tower, Seattle,
Office—1810
Western Greyhound
Dec.
YY
shares of
capital.
J .Beverly Hills,
common
(letter of notification)
and
Jan.
consisting
assessable
Utah
it Wendover Building Corp., Beverly Hills, Calif.
9 (letter of notification)* 2,950 shares of, capital
stock (no par).
Price—$100 per share. Proceeds—For
>
ceeds—For
Travelfares, Inc., Seattle, Wash.
Provo,
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
burgh, Pa. and Birmingham, Ala.
unit.
Wilshire
Publishing Co., Inc., Philadelphia, Pa.
$247,000 of 5V2% con¬
writer—Albert C.
Co.,
cents per share. Proceeds — For expenses incident to
mining activities. Office — 718 Title Guarantee Bldg.,
(letter of notification)
of
Investment
Warrior Mining Co., Birmingham, Ala.
Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent). Price — Five
of $1,000 of debentures and 100
stock.
Price—$1,010 per unit. Pro- r
payment of indebtedness, expansion, establishment of additional offices; professional and editorial
assistance, advertising and promotion; and working capi-,
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under-
shares
P.
<
Price—$1
capital. Office—5225
Blvd., Los Angeles, Calif. Underwriter—None.
Sept. 29
2,000,000 shares of common stock (par
Price—25 cents per share.
Proceeds—To
Honolulu* Hawaii.
Development Corp.
Nov. 14 (letter of notification 45,000 shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 shares of
class A common stock (par $1) to be offered in units
Proceeds—For
filed
Underwriter—H.
diversi¬
Incorporated,
Trans-American
of
21
cents).
explore and acquire claims, for purchase of equipment
and for working capital and other corporate purposes.
Price—To be supplied by
fication program. Underwriter—Blair & Co
New York.
Under¬
Wagon Box Uranium Corp., Provo, Utah
31, at Room 2033, Two Rector
1, 1971.
Y;
Inc., Reno, Nev.
Jan.
Inc. (1/25)
;r
Dec. 29 filed $30,000,000 of 5% convertible subordinated
due
Pro¬
^Victor Mining & Milling Corp.
10 (letter of notification) 250,000 shares of common
stock.
Price—At par
($1 per share).
Proceeds—For
expenses incident to mining operations.
Address—Box
Under¬
purposes.
American,
debentures
Price—50 cents per share.
stock.
five
Textron
—
Aug. 15 (letter of notification) 270,000 shares of capital
Price—At par ($1 per share).
Proceeds—For ex¬
penses incident to mining activities.
Office—312 Byington Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
Offering—
St., New York, N. Y.
•
Offering
Brokerage Co., New Orleans, La.
Utah Grank,
Pierce, Fenner & Beane (jointly); Union Securities
Corp.; Lehman Brothers and Bear, Stearns & Co. (joint¬
ly); The First Boston Corp. Bids—To be received up to
11
(par 16% cents).
Trans-Western
(1/31)
common
None.
mining activities. Office
—Greyhound Terminal Building, West Temple & South
Temple Streets, Salt Lake City, Utah. Underwriter—
redemption of presently outstanding
5.50% first preferred stock. Under¬
Utilities
filed
—
ceeds—For expenses incident to
Corp.
writer—Dillon, Read & Co., Inc., New York.
Temporarily postponed.
Jan. 5
Underwriter
Utah-Arizona Uranium, Inc., Salt Lake
City, UtaN
Aug. 1 (letter of notification) 600,000 shares of common
200,000 shares of cumulative preferred
Price—To be supplied by amendment.
Proceeds—Toward
purposes.
Postponed.
stock (par $100).
debentures
Underwriter
—National Securities Corp., Seattle, Wash.
unit.
and
five shares
of
stock.
Proceeds—For construction
Corp., New York
Oct. 27 filed 2,573,508 shares of common stock (par
$1),
which will be issuable upon exercise of the common
stock
& Co., San
and
Price—$52.50
installation
per
of
a
Houdriformer
Tri-Continental
purchase warrants presently outstanding. Price—
Each warrant currently entitled the holder to
purchase
1.27 shares
at $17.76
per
share for each one share
specified in the warrant certificate.
Trinidad
Dec.
Nov.
of
Price
149th
vertible debentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
Corp., Barstow, Calif.
stock.
increase
New
American
shares
10
it United Drive-In Theatres Corp.
16 (letter of notification) 250,000 shares of
Sept. 9 (letter of notification) 3,000,000 shares of capita)
stock (par one cent). Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605 Judge Bldg.,
Salt Lake City, Utah. Underwriter—Skyline Securities,
*
4
St.,
of
common
To
Jan.
'
*
units
of
—
stock (par 10 cents).
build
and
operate
Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
—For expenses incident to mining activities. Office—
Moab, Utah. Underwriter—Honnold & Co., Inc., Salt
Lake City, Utah.
writer—To be determined by competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co. and Merrill Lynch,
Utah.
•
Underwriter—Securities, Inc., P. O.
127, Arvada, Colo.
Sweetwater Uranium
in
share
one
Vesey
Nov. 7
*
offered
Proceeds
assessable
10
stock
(letter of notification) 29,600,000 shares of com¬
Price—At par (one cent per share). Pro¬
ceeds—For mining operations.
Office—608 California
stock.
Bldg., Denver, Colo.
Nov. 9 filed 1,428,000
•
Nov. 9
mon
Thursday, January 19, 1956
Tunacraft, Inc., Kansas City, Mo.^ ^ Y'
Aug. 22 (letter of notification) $205,000 principal amount
12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Ivans & Co., Kansas City, Mo.
per share).
of sulphur
eration
Exploration, Inc.
San Juan Uranium
Aug.
($2
par
131
..
.
stock
Brick & Tile Co.
14
(letter of notification) 800 shares of common
(par $100); and $75,000 of 6% construction notes
due Dec. 15, 1963.
Price—At par. Proceeds—For pay¬
ing notes payable and accounts payable and operating
capital.
Office—Trinidad, Colo.
Underwriters—Fairman, Harris & Co., Inc., Chicago, 111.
repay
cracking unit; expansion of refinery; to
outstanding obligations; and for working capital.
Office—North
t
Salt Lake, Utah.
Francisco, Calif.
Underwriter—J. Barth
Wonder Mountain Uranium, Inc.,
Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of common stock
(par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to
mining activities.
—
Office—414 Denver Nat'l
Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.
Under¬
Woodstock Uranium Corp., Carson
City, Nev.
(letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (10 cents per share). Proceeds
V
Nov. 21
—For
mining
expenses.
Office—Virginia Truckee Bldg.,
Volume 183
Number 5460 .X The Commercial and
Financial Chronicle
Carson City, Nev.
Underwriter—Cayias, Larson, Glaser,
holders in the ratio of
Emery, Inc., Salt Lake City, Utah. .<
Price—To
(par 50 cents). Price—$1 per share.
Proceeds—
For mining operations.; Office—268 Main
St., Lander,
Wyo.
Underwriter—Valley State Brokerage, Inc., 2520
South State St., Salt Lake
City, Utah.
share. Pro¬
300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For
payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
—
Offering—
York-Hoover Corp., York, Pa.
(letter of notification) 11,020 shares of common
(par $10).
Price—$12 per share.
Proceeds—For
Feb.
★
Zenith-Utah Uranium Corp.
Sept. 14 (letter of notification) 6,000,000 shares off class
Price—At par (five cents). Proceeds
—For mining expenses.
Office—45 East Broadway, Salt
Lake City, Utah. Underwriter—Bel-Air
Securities Corp.,
//:'4v
struction program.
be
Boston
Corp.; Morgan Stanley & Co.; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co.
(jointly).
Bids—Expected to be received on March 15. Registration
Exchange Bank
certificates to
Probable
announced
company may issue and sell
to 29,761 shares of common stock to its
on
Jan.
17
approved
the proposed
refinancing program.
Proceeds
Together with funds
from private sale of
$8,000,000 new 4*4% prior lien
up
who
—
bonds,
to
redeem
$10,400,000
outstanding
4*/2%
first
mortgage bonds,, Underwriter—May be The First Boston
Corp., New York.
★ Bank of America, N. T. & S. A.
Jan.
17
it
1,600,000
was
announced
the
additional .shares
.
of
plans
company
capital
stock
to
to
offer
stock-
/Bros.
annual
Atlanta, Ga.
installments.
Inc.;
Bank,
(1/20)
of
as
Jan.
20,
the
sale
headquarters in the heart
share
for
rights
to
to
9
it
was
are
delivered "on time."
tees
is
one
of the
the finest and
reasons
most
"Printed
by Pandick"
sometime
company
be received
between
1956, will probably do
each
nine
on
increase
on
1
May 1.
plans
to
offer
expansion.
and
now
the
summer
of
additional financing. Pro¬
some
Underwriters—The
Power
&
announced
some
common
that
the company expects to
stock
financing early in 1956,
program.
petitive
Co.
NY 1-3167
Underwriter—To be determined by
bidding.
and
Probable "bidders:
W. C.
Union Securities Corp.
(jointly);
com¬
Langley
&
Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Carl M.1 Loeb, Rhoades & Co.; Blvth & Co.
and
The First Boston
Corp. (jointly); White, Weld
Shields & Co. (jointly); Lehman Brothers.
15
Du
it
.
-
83
was
a
Mont
suance
MArkef 3-4994
announced
was
$10,000,000
and
company may
$12,000,000
of
issue and seK
first mortgage/
bonds. Underwriters—To be determined by competitive
bidding. Probable bidders: Halsey,. Stuart & Co. Inc.,
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
& Beane (jointly); Lehman Brothers and
Blyth St
ner
Co., Inc. (jointly): Glore. Forgan & Co.; and The FirsS
Corp. Offering—Expected early in 1956.
Boston
Georgia Power Co.
Dec. 14 it
was
(3/29)
announced company
plans to issue and sell
$16,000,000 of first mortgage bonds. Proceeds—For con¬
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart & 1
Co. Inc.; Morgan, Stanley &
Co.; The First Boston Corp.;
Shields
&
Co.
and
Salomon
Bros.
&
Hutzler
(jointly);
Harriman Ripley & Co. Inc.; Lehman Brothers; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly)-
Bids—Expected to be received
Broadcasting Corp.
was
on
announced that
Dec.
2
Laboratories, Inc.
a
to
derwritten.
&
to
corporation, following is¬
stockholders
of
Allen
of 944,422 shares of
its
stockholders.
B.
Du
common
dividend, contemplates that additional
offered
★ Glasscock
on
March
29.
Registra¬
(C.
G.)-Tidelands Oil
Co.
was
Co.; and William E. Staats & Co.
Gulf States Utilities Co.
shares
was
reported
company may issue and seB
mortgage bonds if market conditions
Underwriter—To be determined by competitive
first
Mont
stock
as
will
be
This
offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noei
Co. handled Du Mont Laboratories class A stock fi¬
Halsey, Stuart & Co. Inc.;
Lynch, Pierce, Fenner St
Beane and White, Weld & Co. (jointly); Salomon Bro*.
& Hutzler and Union Securities Corp.
(jointly);
Kuhr,
Loeb & Co. and A. C. Allyn & Co., Inc.
(jointly); Lea
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.
Houston
Oct.
31
it
Lighting & Power Co.
reported company may sell early next
$30,000,000 of bonds. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
was
year about
determined
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and" Salomon Bros. &
Hutzler (jointly); Kidder, Peabody & Co.; Equitable
Securities Corp. Offering — Expected in February or
March.
Hudson
Nov.
28
it
Pulp & Paper Corp.
reported company may do some public
connection with proposed newsprint mill,
which, it is estimated, will cost about $25,000,000. Under¬
was
financing in
writer—Lee Higginson Corp., New York.
Inland Steel Co.
Nov.
Joseph L.
3,
Block, President, announced that a
portion of the required funds for the com¬
pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
substantial
will be derived from retained earnings and depreciation
However, he stated, it will also be necessary
secure a large portion through public
financing. It is
quite likely that a major part will be in the form of debt
financing. No such financing is contemplated during the
current year, nor have the times or methods of financ¬
ing been definitely determined. Underwriter — Kuhn,
reserves.
to
Loeb &
Co., New York.
★ Inter-County Telephone
Ft. Myers, Fla.
Jan.
Dolly Madison International Foods Ltd.
Nov.
Aug. 10 it
WOrth 4-2900
Proceeds—For construc¬
announced that Foremost
Dairies, Inc.
future date to give its stockholders the
right
to
purchase its Dolly Madison stock.
Underwriter—
Allen & Co., New York.
ST., NEWARK, N. J.
.between
Milwaukee
Light Co.
was
Established 1923
71 CLINTON
Power Corp.
April 14 it
Merrill
it Consolidated Water Co.
Jan. 16, Frank A.
O'Neill, President, announced that the
intends at
n THAMES ST., NEW YORK 6
Straus, Blosser & McDowell, both of Chicago, 111.
bidders:
preferred stockholders at market
prices payable with funds to be received March
15, 1956
from the redemption of the
preferred stock. Underwriter
—Probably Blyth & Co., Inc., San Francisco, Calif.
& Co. and
^andiclf^press, Inc.
and
Probable
/new common shares to
guaran¬
complete printing service available.
—
Brothers;
expire
Proceeds—To
Consolidated Freightways, Inc.
Dec. 21 it was announced
corporation
Inc.
SPEED
Corp., Hounia; La.
reported early registration is expected
of 159,000 shares of common stock.
Price
Probably
$5 per share. Underwriters—Fairman, Harris & Co., Inc.,
bidding.
(5/1)
reported company plans to issue and sell
Tentatively expected to
tion
rigorous
schedule; all
stock
was
stock¬
$40,000,000 of 25-year debentures. Underwriters—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
undertake
financial
it
Lehman
★ Columbia Gas System, Inc.
Jan.
ftetaware
of New York's
great
12
100,000
of
(par $10)
1956;
share.
per
probably first to stockholders.
From its
Flo-Mix Fertilizers
Dec.
permit.
Nov. 8 the directors recommended
additional shares of common stock
holders on the basis of one new
Sept. 28 it
district, Pandick Press, Inc. produces millions of
important docu¬
ments each
year. Most of these are
printed on a
'
May 16 it
$10,000,000
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
Corp. underwrote class A common stock offer¬
ing made last August.
®
debentures
common
—
Salomon
& Share
f f
income
&
equal
Citizens & Southern National
ceeds—For
j»
subordinated
15
Halsey, Stuart & Co.
& Hutzler; Kidder, Peabody & Co.
capital and surplus.
stockholders
of
$3,900,000 of equipment trust
(CST)
111., for
'
considering an
or
possibly
purchase
warrants.
Proceeds
About $2,000,000, together wila
$2,000,000 from private sale of notes, to repay bank
loans. Underwriters—H. M.
Byllesby & Co. (Inc.) and
Hayden, Stone & Co., New "York. (>/:
4-;1issue
preferred stock, together with
in
bidders:
Automatic Washer Corp.
Dec. 5 it was reported
company plans early registration
of 250,000 shares of common stock
(par $1.50). Under¬
writer—Cohen, Simonson & Co., New York.
early in 1956
■■
of
held
was
•' -4
are
it
from
2./Price—$30
it
"'x44 ' v'
//':
mature
purchase
shares
19
refineries.
reported company may soon file a registra¬
tion statement with the SEC
covering a proposed issue
of about $9,000,000 of new securities
(debt and equity).
Underwriters—First California Co. Inc.; Eastman, Dillon
March
Bangor & Aroostock RR.
'X
directors
announced
was
Jan. 9 it
^Planned for Feb. 17.
Dec.
both
at
•
Pacific Electric Co.
it
★ Chicago & North Western Ry. (2/1)
Bids will be received by the
company up to noon
on
Feb. 1, at 400 West Madison
St., Chicago 6,
con¬
determined
equipment
tion—Planned for March 2.
plans to issue and sell
Underwriter—To
refining
Corp.; Hemphill, Noyes & Co.; and W. C.
Langley & Co.
the
by
competitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; Blyth &
Co., Inc. and Kidder, Peabody & Co.
/.(jointly); Lehman Brothers; Equitable Securities Corp.,
Union Securities Corp. and Drexel &
Co. (jointly); The
First
Chemical Corn
than 50 cents per share.
struction program.
First Boston
(3/15)
announced company
•
eight shares held. The time and price is subject to deter¬
mination by the directors. Proceeds—To increase
capi¬
tal and surplus.
Underwriters—Kuhn, Loeb & Co.; The
Prospective Offerings 14
was
•
Jan. 17 stockholders authorized
590,425 additional shares
of capital stock
(p.ar $10), which are to be offered to
stockholders on the basis of one new share for each
A common stock.
Dec. 14 it
14.
,
Underwriter—E. W. Clark &
$14,000,000 of first mortgage bonds. Proceeds—For
to
(jointly); The First Boston Corp.; Kuhn, Loeb & Co.
Bids—Expected to be received up to noon (EST) on
Co., York, Pa.
Power Co.
applied
for
repay bank loans and for construction program./
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Glore, Forgan & Co.
(jointly); Kidder,
Peabody & Co.; Union Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane and Salomon Bros. & Hutzler
stock
Alabama
has
company
13
Florida
—To
Office
Toronto,
Otis, Inc. and F. H.
>,<
Dec.
(2/14)
authority to issue and sell $10,000,000 of its
first mortgage bonds, series
G', due Feb, 1,1986. Proceeds
Jan. 4
city.
Central Power & Light Co.
13
it was
announced
SEC
Indefinitely postponed.
same
Probable bid¬
Inc.; Salomon Bros. & Hutzler; R. W. Pressprich & Co.
★
more
:///'-
Federal
/,
4
ture in 30 equal semi-annual instalments.
ders: Halsey, Stuart & Co.
and
additional working capital.
(1/25)
Jan.
additional
N. J.
are
expected to be received by the company up to
(EST) on Jan. 25 for the purchase from it of
$4,680,000 equipment trust certificates, series B, to ma¬
Aug. 19 filed 1,000,000 shares of common stock
(par one
cent), of which 700,000 shares are to be sold for account
discount of not
Underwriter—May be Julius Maier Co.," Inc., Jersey City>
noon
Corp.
general corporate purposes.
Canada. Underwriters—Gearhart &
and
was
Central of Georgia Ry.
Bids
a
Empire Petroleum Co., Denver, Colo.
Jan. 7 E. M. Stone, President, announced company
plana
early registration of $2,000,000 of debentures. ProceedsTogether with funds from private placement of $1,000,000 of senior debentures, to be used for
working capital
—
writer—None.
Crerie & Co., Inc., both of New York
City.
Stock
less
announced company has applied to Cali¬
Commission for authority to issue and sell
publicly 150,000 shares of common stock (par
$12.50)
and 80,000 shares of preferred stock
(par $25) privately.
Proceeds
To reimburse the
treasury for construction
and improvement expenditures.
Underwriter—Blyth &
Co., Inc., San Francisco, Calif.
Wyton Oil & Gas Co., Newcastle, Wyo.
Sept. 29 filed
25^,000 shares of common stock, (par $1).
Price—At the market. Proceeds—To
August Buschmann,
of Seattle,
Wash., and members of his family. Under¬
other
it
13
common
York
fornia P. U.
Price—On the over-the-counter market at
>
Light Corp. to sell not mo|e than 10,000 shares*,
stock of Duquesne Light Co. on the New
Exchange by negotiated sale to a pur-,
chaser who will buy at the prevailing market
prices*
of the
★ California Water & Telephone Co.
Jan.
prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for
Cody plant, for
acquisition of additional site, and related activities.
company
Duquesne Light Co.
Nov. 28, it was announced SEC has authorized
Standard;
Power &
Corp. (jointly); Morgan Stanley & Co.; The First Boston
Corp. Bids—Expected to be received on March 6.
/
Price—Shares
then
of
expan¬
Underwriters—Blyth & Co., Inc. and Dillon,
mined by competitive bidding. Probable
bidders: Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and
Lazard Freres
& Co. (jointly); White, Weld & Co. and Union
Securities
<
some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of
Broadcasting firm.
on
Proceeds—To repay advances from American
Telephone
& Telegraph Co., the parent.
Underwriter—To be deter¬
Oct. 10 filed 971,000 shares of
capital stock (par 10
cents), of which 700,000 shares are <for
company's ac¬
count and 271,000 shares
for account of two
selling
Uranium
Proceeds—For
133
nancing
6.
Telephone Co. of Pennsylvania (3/6)
was reported
company is planning to issue and
$35,000,000 of debentures to be dated March 1, 1956.
sell
«Wyoming-Gulf Sulphur Corp.
Yellowknife
March
on
Bell
properties, and in exchange
per
later.
Jan. 6 it
ceeds—To acquire properties. Underwriter—None.
stockholders.
share for each 15 shares
new
determined
Read & Co. Inc.
Wycotah Oil & Uranium, Inc., Denver, Colo.
Nov. 10 filed 1,500,125 shares of common stock
(par one
cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the
for such working interests and
properties.
to be valued at an
arbitrary price of $4
be
sion, etc.
stock
of certain uranium
one
held, subject to approval of stockholders
Wy-Cal Uranium Enterprises, Inc., Lander,
Wyo.
Dec. 6 (letter of notification) 273,000 shares of
capital
owners
(393)
16 it
publicly
tral
&
Telegraph
Cc.
of
reported company is considering to offer
issue of common stock. Underwriter—Cen¬
was
an
Republic Co., Inc., Chicago, 111.
Kansas
Dec. 27 it
Gas &
Electric
Co.
(2/27)
reported company plans to issue and sell
$7,000,000 of first mortgage bonds due 1986. Proceeds—
was
To repay bank loans and for construction program.
Un¬
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Union Secu¬
rities
Corp. and Stone & Webster Securities Corp.
derwriter
—
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Continued
on
page
134
134
The Commercial and Financial Chronicle
(394)
Continued
jrom
page
New
133
Bear, Stearns & Co. (jointly); Blyth & Co., Inc. and The
First Boston Corp. (jointly); Glore, Forgan & Co. and
Goldman, Sachs & Co. (jointly); Harriman Ripley & Co.
Bids—Expected to be received up to 11 a.m.
Inc.
Registration—Scheduled for Jan. 27.
Feb/ 27.
on
(2/27)
Co.
fo
Dec. 27 it
(EST)
reported company plans to issue and
was
sell
200,000 additional shares of common stock. Proceeds—5
To repay bank loans and for construction program. Un¬
derwriter —- To be determined by competitive bidding.
Probable
Sachs &
bidders:
Glore,
Forgan
&
Co. and Goldman,
(jointly); Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. and White, Weld & Co.
Co.
(jointly); Lehman Brothers; Union Securities Corp. Bids
—Expected to be received up to 11 a.m. (EST) on Feb.
27. Registration—Scheduled for Jan. 27.
Kimberly-Clark Corp., Neenah, Wis.
plans fur¬
which has not
yet been determined, except it is not the present inten¬
Nov. 22 it
announced that the company
was
ther financing, the nature and extent of
tion
to
additional
sell
common
stock.
Proceeds—To
be
used, to pay for further expansion, estimated to cost an
additional
$37,000,000.
Underwriter—Blyth & Co., Inc.,
York.
New
stockholders 834,976
on the basis of one
proposed offering to stockholders of 100,000 addi¬
tional shares of common stock (par $20) on a l-for-4
basis. Underwriter—The First Boston Corp., New York.
on
L-O-F Glass Fibers Co.
Jan. 11 it
common
(2/29)
announced company plans to offer to its
was
stockholders of record
on or
about Feb. 29,1956
the right to subscribe for additional common stock at
the rate of one new share for each 10 shares held; rights
to
expire on or about March 26, 1956. Company is a
subsidiary of Libbey-Owens-Ford Glass Co. Price—Ex¬
pected to be $12 per share. Underwriter—May be McCormick & Co., Chicago, 111. Registration—Planned for
around Feb. 10.
Louisiana Power & Light Co.
Dec. 19 it
was announced company plans some financing
during 1956 (probably bonds). Underwriter — To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Equitable
Securities Corp. and Union Securities Corp. (jointly);
Salomon Bros. & Hutzler; White, Weld & Co. and
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane, Kidder, Peabody & Co. and Harriman Ripley
& Co. Inc. (jointly); The First Boston Corp. and Glore,
Forgan & Co. (jointly).
Lowenstein
Jan. 16 it Was
(M.)
& Sons, Inc. (2/13-17)
reported early registration is expected of
$40,000,000 25-year convertible sinking fund debentures
Proceeds—To pay balance of cost of purchase
from Burlington Industries, Inc. of their Pacific Mills
cotton division; to redeem 54,984 outstanding shares of
4*/4% cumulative convertible preferred stock, series A,
at $104 per share; and to repay bank loans. Underwriter
—Eastman, Dillon & Co., New York.
due 1981.
•
were
to vote
on
approving
both of
Dallas, Texas.
★ Merchants National Bank of New Bedford, Mass.
Jan. 18, the Bank offered to its stockholders of record
Jan. 17 the right to subscribe on or before Feb. 1 for
20,000 additional shares of capital stock (par $10) on
the
basis
of one share for each IV2 shares of capital
(par $20) now held. Each of the presently out¬
standing 30,000 $20 par shares are being exchanged for
two $10 par shares, and one additional
$10 par share is
stock
being issued
as
stock dividend.
Price—$25 per share.
Proceeds—To increase capital and surplus. Underwriter
—The First Boston
Corp., New York.
a
Mississippi Power Co.
Nov.
it
3
was
New England Electric System
Jan.
3 it was announced company plans to merge its
subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive, hidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co.. an$ White, Weld & Co. (jointly).
—
$10,000,000
of
1956.
construction.
Underwriters
—
To
be
by competitive bidding. Probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Merrill
Lynch,
Pierce, Fenner & Beane; Lehman Brothers;
Kidder, Pea¬
body & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly).
(2) For preferred
C.
Langley & Co.; Glore, Forgan & Co. and
Sterne, Agee & Leach (jointly); The First Boston
Corp.;
Kidder> Peabody & Co. and White,
Weld & Co. (jointly).
Bids—Expected to be received on"
March 1. Registration—Planned for Feb.
3.
Nov.
21
Homes Corp.
it
October
by competi¬
bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; Salomon Bros. & Hutzler, Union
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
•
New York
Central
Dec. 15 company
3%%
RR.
was
—
Offices—Dearborn, Mich., and Port Jervis, N. J. Underwriter-Probably Campbell, McCarty & Co., Inc., De¬
troit, Mich.
'
Electric
Co.
received ICC authority to sell $6,600,000
equipment
trust
certificates.Jo mature Dec. 15,
Shops, Inc., a wholly-owned sub¬
sidiary, with latter to ultimately offer the certificates
through competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler; Kidder,
Peabody & Co.
New
Dec. 21
stockholders approved
a
plan of exchange pro¬
viding for the issuance (a) of not exceeding $58,131,150
of new unsecured non-convertible 100-year 5% deben¬
tures, dated Jan. 1, 1956, in exchange for present $55,363,000 par value 5% convertible preferred stock, series
Pigeon Hole Parking of Texas, Inc.
on the basis of $105 of debentures for each $100 par
value of preferred stock, plus $5.25 in cash ($5 of which
will be paid as dividend on preferred for year 1955); and
(b) of $72,638,265 of new 5% non-convertible general in¬
mortgage bonds, series B, dated Jan. 1, 1956, in
for present $69,179,300 of 4^2% convertible
general income mortgage bonds, series A, due July 1,
2022, on the basis of $105 of new series B bonds for each
$100 of series A bonds plus $5.25 in cash, which will
include 1955 interest.
Dealer-Manager—Francis I. du
come
exchange
Co., New York.
Nbw York Telephone Co.
(3/27)
Jan. 9 Keith S. McHugh, President, announced
directors
have
authorized
the
sale
of
that the
$55,000,000 of
re¬
funding mortgage bonds. Proceeds—Together with funds
from sale of 1,100,000 additional shares of common stock
at $100 per share to American Telephone & Telegraph
Co., to be used to repay bank loans. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co. Bids—
Expected to be received on March 27.
Northern
Pacific
Ry.
are
to be received in New York City up to noon
(EST) on Jan. 24 for the purchase from the company of
$6,060,000 equipment trust certificates to mature in 15
equal annual instalments.
Probable bidders: Halsey,
Stuart &
Co. Inc.;
Salomon Bros. & Hutzler.
Northern States
was
Power Co.
(Minn.)
*nc' anc* ^arriman Ripley
& Co. Inc.
(jointly); Union Securities Corp.;
Kidder, Peabody &
Co. and Stone & Webster
Securities Corp (jointly); Leh¬
man Brothers and
Goldman, Sachs & Co. (jointly). Bids
—Expected to be received sometime in
March, 1956.
7, v
Tt
that
announced
was
about
800,000
shares of
about
$2,000,000, will be used to pay for expansion pro¬
Underwriters—Porter, Stacy & Co., Houston, Tex.;
Corp., San Antonio, Tex.
:
gram.
and "Muir Investment
Plantation Pipe Line Co.
Dec.
it
19
announced that
was
financing
in
in
1956
may do some
its proposed ex¬
company
connection
with
pansion, costing about $23,500,000.
Stanley & Co., New York.
Underwriter—Mor¬
gan
Riverton
Dec.
19
it
Lime
& Stone
reported
was
Co., Inc., Riverton, Va.
plans to finance its
company
expansion, which, it is estimated, will cost between
$9,000,000 and $10,000,000, part by private placement, and
part publicly. Underwriter—J. C. Wheat & Co.; Rich¬
mond, Va.
*
'
it Rokeach & Sons, Inc., New York
Jan. 16 it was reported company plans to issue and sell
400,000 shares of common stock. Price—Expected to be
$3 per share. Underwriter—Jay W. Kaufmann & Co.,
New
stockholders).
common
stock
(probably first to
Underwriter—To be determined by
bidding.
Probable
bidders:
The
First
com¬
Boston
Corp., Blyth & Co., Inc., and Kuhn, Loeb & Co. (joint¬
ly); Lehman Brothers and Riter & Co. (jointly); Smith,
Barney & Co.; White, Weld & Co. and Glore, Forgan
& Co. Bids—Expected to be received on Feb. 29.
Offshore
Gathering Corp., Houston, Texas
C. Bintliff, President, announced com¬
pany has filed an application with the Federal Power
Commission for a certificate of necessity to build a
364-mile submarine gas pipeline off-shore the coast of
18
David
the
Sabine
York.
it Rotary Electric Steel Co.,
Jan.
21
18 it
on
announced
was
Detroit, Mich.
stockholders
increasing the authorized
March
will vote
common
stock (par $10)
from
750,000 shares to 2,500,000 shares. There are pres¬
ently outstanding 696,700 shares. Part of the increased
will be offered for subscription by stockholders.
The ratio, subscription price and other details will be
determined later. Underwriters—Previous financing was
handled by W. E. Huttcn & Co., Cincinnati, Ohio; Hemp¬
hill, Noyes & Co. and E. H. Rollins & Sons, Inc. (now
Blair & Co.
Incorporated,), both of New York; and Stein
Baltimore, Md. ; Registration—Expected
be filed in February.
Bros.
to
&
Boyee,
Jan. 9 J. A. Ryder, President and Chairman, announced
that the company is planning to issue and sell 151,050
additional shares of common stock.
Proceeds—To help
finance purchase of four other truck lines.
River
to
the
Gulf
Underwriter
—Blyth & Co., Inc., New York.
Seattle-First National
Nov. 22 it
Bank, Seattle
announced bank plans
was
to offer its stock¬
holders of record Jan.
18, 1956, the right to subscribe
on
or
before Feb. 24 for 100,000 additional shares of
capital stock (par $20) on the basis of one new share
for each eight shares held. Price—To be not less than
$85 per share. Proceeds—To increase capital and sur¬
plus. Underwriter—Blyth & Co., Inc., Seattle, Wash. •
Southern
California
Edison
Co.
(2/13-l7)~.~
Jan.
17 the California P. U. Commission approved'an
application for exemption from competitive bidding of
a proposed new issue of
up to 1,200,009 shares of cumu¬
lative preferred stock.
Proceeds—To retire outstanding
bank loans and for construction program. Underwriters
—The First Boston Corp..and Dean Witter & Co.. Offer¬
ing—Expected during the middle of February.
Southern
Dec.
20
S.
P.
sought
Commission
stockholders
030
Indiana Gas & Electric Co.
company
shares
of
of
for
record
J
(2/23)
from
the
Indiana
authority to offer to its common
Feb. 21, 1958, an additional 83,-
common
11
permission
stock
shares
on
held.
basis
the
of
one
new
to expire on
Underwriter—Smith, Barney & Co., New Yorn,
March 8.
Rights
underwrote
are
Registration—Ex¬
previous rights offering.
pected about Feb. 2.
-
Tennessee Gas Transmiss'on Co.
Dec. 29 it
(2/29)
reported that company plans to issue and
additional
some
Nov.
it
share for each
(1/24)
Bids
petitive
22
additional capital stock would be offered for public sale
after the first of January." Froceeds — Estimated
at
A,
•
Kuhn,
Ryder System, Inc.
York, New Haven & Hartford RR.
Coast
of
the State of
Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
was announced company plans a public offer¬
ing in the first quarter of 1956 of a new issue of second
preferred stock. Stockholders! on Feb. 7 will vote on
approving
new
Nov.
it
Service
reported
was
Co.
company
plans
issue
to
and
$10,000,000 first mortgage bonds due 1986. Proceeds
—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬
Brothers and Blyth & Co., Inc. (jointly); Hemphill,
Noyes & Co. and Drexel & Co. (jointly); Kidder, Pea¬
man
body & Co. and Merrill Lynch, Pierce, Fenner & Beane
(jointly);
Webster
•
Union
11
for
Corp.
Feb.
28.
Planters
the
subscribe
—$35
Ripley & Co. Inc. .and Stone &
(jointly). Bids — Tentatively
Harriman
Securities
scheduled
Bank
National
Bank
offered to stockholders the right to
for
60,000 additional shares of capital stock
the basis of one new share for each 10
held Jan. 11, 1956; rights to expire Feb, 1. Price
$10)
on
share.
per
Office—Memphis, Tenn.
Underwriter
—Equitable Securities Corp., Nashville, Tenn.
Westcoast
Transmission
Co.,
Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; The First
Nov.
Probable
and sell
Boston
in units of debentures and stock.
Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley &»Co.,
Inc. Bids—Expected Feb. 15.
\
(2/28)
sell
snares
—
Electric
28
which would be issued from
Underwriters—Stone & Webster
Corp. and White, Weld & Co. (jointly).
Texas
(par
Pennsylvania Electric Co. (2/15)
was reported company plans to issue and sell
about $25,000,000 of first mortgage bonds.
Proceeds
To repay
bank loans and
for new construction.
time, in series.
Securities
Jan.
Dec. 19 it
authorized issue of 1,000,000 shares of this
an
second preferred stock,
time to
notes, convertible into preferred stock at maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,
comPany plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn,
Loeb & Co.; Salomon Bros.
& Hutzler;
White, Weld &
early next year.
Underwriter—To
determined
ders:
New York.
Narragansett
£?n
stock
program.
stock
1956-1970 to Despatch
Louisiana from
(Mich.)
reported company may offer publicly
$1,000,000 of convertible debentures and some common
stock.
Business
Manufactures prefabricated homes.
T".0*.'
during
determined
(3/1)
determined
Modern
bohds
mortgage
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
sell
W.
first
of
Underwriters—To be
plahs'tO'Tssue and sell
tive
Dec. 12 it
stock
announced company
was
sell
new
construction
,
England Power Co.
Jan. 3 it
of
loans and for
Proceeds—For
be
(2/15)
reported company proposes issuance and
was
$9,000,000-of preferred
Oct.
announced
company plans to issue and
$4,000,000 of first mortgage bonds and 40,000 shares
preferred stock (par $100). Proceeds—To repay bank
of
Bids—Expected sometime in May, 1956.
pro¬
a
19 it
sale
by competitive bidding. Probable bid¬
Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody & Co.;
The First Boston Corp.; Smith,
Barney & Co.; Harriman
Ripley & Co. Inc. Bids—Expected Feb. 15.
Mercantile National Bank of Dallas
posed offering to stockholders of 150,000 additional shares
of capital stock. Price—$25 per share. Underwriters—
Hauscher, Pierce & Co., Inc., and First Southwest Co.,
12 shares held.
Pennsylvania Electric Co.
Dec.
bidding.
Brothers
and Bear, Stearns & Co. (jointly); Carl M. Loeb, Rhoades
& Co., Ladenburg, Thalmann & Co. and Wertheim & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane, Kid¬
der, Peabody & Co. and White, Weld & Co. (jointly).
Pont &
Jan. 10 stockholders
share for each
Thursday, January 19, 1956
.
Underwriter—To be determined by competitive
bidders: Blyth & Co., Inc., Lehman
New
announced stockholders will vote Jan. 25
was
new
Probable
Lincoln Rochester Trust Co.
Dec. 19 it
England Electric System
was announced company plans to offer to its
additional shares of common stock
it
Jan. 3
.
.
21
it
was
publicly
be placed
reported
over
privately.
derwriter—Eastman,
company
Ltd.
now
plans
to
issue
$20,000,000 of securities, probably
Bonds
are
expected to
Proceeds—For new pipe line.
Dillon & Co., New York.
Un¬
Volume 183
Number 5460... The Commercial and Financial
Chronicle
135
(395)
The
Indications of Current
Business Activity
AMERICAN
IRON
Indicated
steei
STEEL
operations
AMERICAN
.Crude
PETROLEUM
oil
and
INSTITUTE:
(percent oi
Equivalent to—
Steel Ingots and
castings
„
capacity).
Jan.22
(net tons)
.Jan. 22
(bbls.
of
Stocks
at
Wvmcp-n.
■>:
ASSOCIATION
Revenue
-
at.
U.
S.
In
in transit,
(U.
coal
6
Jan.
(no. of
28,465,000
105,132,000
7
134,413,000
39,872,000
42,767,000
Total
52,065,000
'•
574,663
595,870
727,228
562,975
V;
$461,828,000
222,265,000
.yt
664,474
$160,459,000
239,563,000
J 100,689,000
597,352
New
7
.173,572,000
151,411,000
26,820,000
22,161,000
9,100,000
10,815,000
'
7
562,000
.Finished
-
steel
Pig Iron
METAL PRICES
Electrolytic
^
(E.
*88
245
235
^•77"
Farm
i.
Export
Btralts
(New
11,057,000
11,602,000
7 -7
198
(St.
(East
MOODY'S
C. 8.
■
St.
BOND
t
106
All
200
P.tblic
$53.67
$53.33
$56.59
43.575c
43.725c
31.500c
Sewer
109.000c
86.125c
15.000c
Conservation
All
!
15.500c
Jan. 11
16.300c
16.300c
15.300c
14.800c
Jan. 11
13.500c
13.000c
13.000c
95.19
Jan. 17-
107.27
; 106.74
110.70
109.79
114.66
109.60
109.24
108.70
97.72
112.00
107.62
107.27
106.74
102.30
101.97
105.00
107.62:
'*107.09
108.70
108.16
111.62
Average
Jan17
DAILY
Jan. 17
corporate-™.;.:
;
2.84
2.87
2.87
3.32
3.35'
.
'
3.11
3.13
3.18
Group
3.21
3.24
NATIONAL
Jan. 17
cirri,
■■■>■■
,OIL, PAINT AND DRUG
IVEKAGE
3.35
of
3.43
,
3.45
22
102
20
building-
^
200
*
"I
,
,
25
58
115
200
355
80
89
21
25
43
49
10
13
10
$510,000
$542,000
$733,000
service .enterprises
development
4
25
50
106
and
:
351
35
-
.
'
PAPER
31
43
)
88
214
77
..:
is
52
*
OUTSTANDING—FED¬
BANK
OF
NEW
YORK—
(000's omitted)
INDEX
1947-49=100—
—
'
115.0
Food
at
home
and bakery products
poultry and fish.—
and
Other
foods
vegetables
3.24
.3.27
402.0
<404.6
406.2
264,364
290,959
264,700
249,382
3.08
7
182,195
211,615
285,519
92
56
102
577,240
638,940
fuels
107.50
107.14
113.7
:-r
and
fuel
oil
129.2
V' 111.5
—
111.2
108.7
126.7
104.5
104.4
1
120.5
120.1
104.6
and
boys'
and
^
104.6
Medical
126.3
106.0
—
___i—-
girls'—
124.2
.
106.0
105.4
Personal
91.0
care
and
91.0
126.6
128.7-
91.2
126.1
117.5
Other goods and services—
;__T
117.0
106.8
120.6
*
113.8
106.7
120.6
—*
.
127.6
.
106.8
——
recreation—
•
99.5
117.0
128.5
-
Reading
99.5
118.4
129.8
—
t
106.5
99.3
119.2
care
.
117.8
,
Other apparel
106.61
*
119.5
.y-
operation
Transportation
INDEX—
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
ODD;
LOT
DEALERS AND
SPECIALISTS ON
N.
V,
Sloe*
113.9
120.8
104.7
Men's
406,002
107.54
109.6
130.8
Footwear
86
658,142
103.5 *
106.6
108.5
113.1
Apparel
204,172
7
7
123.1:
123.9
.107.5
;
home
Housefurnishings
414.1
7
110.1"'
100.9
"
109.0
—
electricity
Household
^
.:.-;
and
Solid
3.12
3.30
at
-,'V
;
111.1
109.4
97.1
.•V 107.8
114.6
110.8
.
123.9
:
_j_'
!
114.9
108.2
products
Gas
3.25
3.33
3.28
Jan.
PRICE
21
318
31
130.9
3.46
Jan.
period
REPORTER
20
120.9
3.16
3.63
Jan. 13
end
100
=
3.41
Vv
Jan.
at
829
of November:
Women's
|
(tons)
3.61
3.23
Jan.
activity.
orders
19411
v::
ASSOCIATION:
(tons)
of
Unfilled
3.32
Jan. 17
(tons)
Perttmage
3.30
Jan. 17
INDEX
PAPERBOARD
received
Production
985
51
269"
287
—
3.06
,
Jan. 17
_
COMMODITY
12
767
2.92
3.19
:
3.60
MOODY'S
11
___J:
Fruits
-.2.66
,
3.30
Jan. 17
Puojic Utilities Group
Industrials Group
60
298
10
public
PRICE
Meats,
3.15
k
Jan. 17
_
28
55
——
public
Cereals
.
;
.
A
348
30
'
93
-388
,267
„—___
,•
Dairy
Jan. 17
Aa
Railroad
T
.
Jan. 17
Aaa
19 "
94
'
109.8
>
AVERAGES:
-
26'
29
telegraph-™
'
29
34
351
All items
.
YIELD
21
29
35
83
water
Dec.
Month
110.88
—y
Group—1
BOND
20
108.52
107.93
of
CONSUMER
104.83
105.34
108.88
.■■■_
As
110.15
102.46
105.69
U. 8. Government Bonds
45
27
utilities
RESERVE
110.34
111.07
u
95.08
107.62
Jan.17
Industrials
other
ERAL
'
95.48
-.
-Jan.17
:——-—
Group,.,
MOODY'S
and
COMMERCIAL
Jan. 17
GraujLy^.
57
45
192
11.500c
AVERAGES:
Bonds
■
67
186
Miscellaneous
16.270c
at
———
176
—
Military facilities
Highways
44.925c
Jan.17
Utilities
196
63
_
29.700c
108.500c
—
Railroad
105
building—l'lli
16.500c
Jan.17
Public
87
186
institutional
44.200c
43.575c
*184 *
; no
188
buildingf
Educational
$34.33
552 :
;
•V't- 225"'r.
162
'
Non-residential building™:
Industrial
_i_
4.797c
7$59.09
-"^$52.17
-
',<
107
construction
45.100c
A
,
'5.174c
•
717
*
v.
T
86
22
'
296
recreational
and
Residential
1,258
1,150
;
269
private-
106.125c
corporate
1-Baa
226;
$3,092 !
43
public
other
;_Jan. 11
;
Asa
Aa
5.174c
$59.09
'
Jan. 11
<
:: 2,263
<
i'
32
683
j
Jan. 11
DAILY
(non-farm)
__
and
_Jan. 11
PRICES
31
Other non-residential
at
-
110
i.;
and
Telephone
9,928,000
247
*•«
_
_1
Louis)
uoveminent
Average
:
at
"1,280
92
Hospital and institutional
at
Louis)
5.174c
$59.09
'/■:
Jan.11
-
».
York)
1,160
'
QUOTATIONS):
at
York)
Lead
-.Zinc
refinery
tin
(New
Lead
••'
Jan.11
copper—->
Domestic refinery at
<
1,422
construction
Other
Jan.11
.
2,632
alterations
non-residential
Hospital
A
,
.
M.
&
and
Railroad
ton)
*
88,591,000
$873,101,000 f
$3,617
2,410
1,283
Religious
Educational
Social
PRICES:
(per gross ton)
85,508,000
$3,177
~
Public utilities
lb.)
(per
(per gross
Berap steel
.
(in millions):
(non-farm >
units
dwelling
Other
489,000
94
11,594,000
16,800,000
OF
Miscellaneous
Jan.14
DUN
DEPT.
buildings and warehouses
Stores,-restaurants and garages
8,510,000
479,000
'
•
S.
Office
97,903,000
459,000
Jan.12
COMPOSITE
99,781,000
.
RESERVE
Jan.
v
$641„680,000, $641,536,000
Commercial
181,992,000
84,089,000
9,270,000
Jan.
INDUSTRIAL)
16,742,000
Industrial
$414,944,000
232,952,000
175,233,000
'
73,869,000
71,855,000
7
63,835,000
20,024,000
54,125,000
t
construction™
Additions
INSTITUTE:
AND
;
9,963,000 f
290,209,000
between,
construction
Residential .building
563,920
$348,805,000
59,770,000
167,708,000
Jan.
INC
182,254,000
8,686,000
...
new
MINES):
kwh.).
shipped
countries
Non-residential building
Jan.12
100
$285,284,000
204,971,000
8,950,000
Non-housekeeping
Jan.12
INDEX—FEDERAL
and
Private
1
(tons)
(tons)
$258,502,000
210,400,000
_2
'
stored
CONSTRUCTION—U.
LABOR—Month of December
'
611,299
j-
J*
;
goods
BUILDING
t
•\
on
foreign
ENGINEERING
—
exchange
Based
~
;
credits
,v_
32,005,000
112,792,000
'
7
Jan.
cars)
lignite
000
31:
$251,G82,000
warehouse
Dollar
2,844,000
27,437,000
Jan.12
=
Dec.
Ago
BANK
160,956,000
'
Jan.12
(COMMERCIAL
AGE
-
158,374,000
3y,71y,0u0
AVERAGE
(In
BRAD STREET,
IRON
7,389,000
"25,392,000
2,437,000
•l
*165,268,000
107,269,000
6
SALES
of
RESERVE
shipments
Domestic
6,574,400
•
and
ELECTRIC
FAILURES
2,475,000
Jan.12
BE STEM—1947-49
,
27,249,000
*
169,012,000
26,345,000
Jan.
OF
YORK—As
Total
a„u.
BUREAU
FEDERAL
—
Year
Month
OUT¬
8,876,000
6,922,500
7,618,000
26,546,000
RAILROADS:
V-'\v". V.'^
S.
NEW
ACCEPTANCES
Domestic
12,414,000
8,518,000
at
CONSTRUCTION
STORE
output
11,863,000
6
(number of cars)
Pennsylvania anthracite
EDISON
13,207,000
V 9,366,000
.Jan.
State and municipal.
Federal
„..JDectric
13,501,000
6
construction.
DEPARTMENT
2,444,000
Jan,
construction
Bituminous
27,179,000
6
8,895,000
Public construction
COAL OUTPUT
6
6
lines^
pipe
at-
freight received from connections
Frlvate
7,907,000
at
AMERICAN
ENGINEERING
NEWS-RECORD:
Total
6,987,050
118,020,0001
rv-
OF
CIVIL
*
7,026,450
6
Jan.
-
freight loaded
'Revenue
•
6
Jan.
gasoline-(bbls.)
Distillate fuel oil (bbls.)
Residual fuel oil (bbls.)
DOLLAR
Exports
(bbls.)
unfinished
/hhl«>
OP
i
Jan.,
—
terminals,
refineries, bulk
Finished .and
.
2,008,000
Jan.
:
;
(bbls.)
Montlr
BANKERS'
STANDING
2,338,000
Previous
'
+
83.2
Jan.
Jtesidual fuel nil output
?
v
1
1
of that .date;
are as
Latest
Ago
96.9
*2,428,000
-
of quotations,
cases
Imports
output—rdally average
stills—daily average (bbls.).
Gasoline output (bbls.)
.Kerosene output (bbla.)
Distillate fuel oil output
■-■J
§2,391,000
in
or,
either for the
are
Year
Ago
*98.6
production and other figures for the
cover
Dates shown in first column
.
that date,
on
INSTITUTE:
condensate
Crude runs to
Month
Week
§97.1
month available.
or
month ended
or
Previous
Week
42gallons each)
<
week
Latest
AND
following statistical tabulations
latest week
120.0
.
EXCHANGE
Odd-lot
salea
—
by
SECURITIES EXCHANGE
dealers
(customers'
COMMISSION:
Dollar
Dec. 24
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'
short
other
994,765
6,646
5,971
Nnmhpr
763,061
purchases
by
AND
ACCOUNT
round-lot
Other
$52,646,036
214,760
398,980
306", 670
3LU700
Dec. 24
.
SALES
ROUND-LOT
OF
386,900
343,460
?
1214~760
-
THE
ON
STOCK
MEMBERS
N.
Y.
:
Total
3984980
Platinum
Other
284,400
FOR
ACCOUNT
OF
414,230
375,550
550,440
12,042,720
12,338,630
9,749,740
14,514,540
12,531.860
12,752,860
10,125,290
15,064,980
London
refined
long
(per
(per
1,556,570
230,980
1,508,740
1,157,490
1,612,870
18i,930
188,990
1
ton)
1,250,310
1,037,560
1,443,070
1,440,240
1,226,550
340,120
369,650
238,870
505,160
(per
(pence
St.
12,300
14,420
23,500
346,690
250,490
—
'
288,390
'
Dec. 24
307,150
;
358,990
264,910
452,510
i
929,440
411,745
622,661
98,610
72,040
842,633
441,025
630,982
941,246
513,065
2,807,830
1,808,105
ounce,
Dec. 24
690,190
Dec. 24
126,780
Dec. 24
sales
sales
Dec. 24
account
of
ounce)
per
——i
Dec. 24
tl»4?-49
NEW
=
SERIES
U.
—
S.
DEPT.
376,520
300,840
275,450
2,099,811
2.439,636
1,729,075
2,345.772
2,476,331
2,740,476
2,004,525
99%
price)
S.
plus ingot
ingot
(per
commodities
♦111.3
111.1
91.2
84.6
*85.6
83.3
Jan. 10
-
other
than
farm
and
foods
98.6
*98.5
98.0
71.4
71.9
84.8
119.9
*119.8
119.5
115.1
Jan. 10
♦Revised figure,
fllnc'udes 733,000 barrels of foreign crude runs.
?Based on new
1, 1953, as again t Jan. 1, 1955 basis of 125 828 310 tons. iAll-time record.
tNumber of orders not
reported since introduction of Monthly Investment Piun.
of Jan.
$1.70000
$1.70000
$1.70000
$1.70000
.
$2.60000
$2.60000
90.450c
91.461c
85.250c
79.2J5d
74.250d
$2.80260
$2.80145
$2.78764
(per
88.649c
—
—'
96.804c
87.643c
$35,000
$35,000
$279,423
pound)-—
pound)—
97.801c
106.774c,
$35,000
——
$279,390
$319,538
24.400c
24.400c
32.500c
32.500c
64.500c
64.500c
$2.25
$2.25
"
22.200c
27.000c
•'
64.500c
$2.25
Dec.
31
DEBT LIMITATION
(000's omitted):
,
Total
face
amount
that
may
be
.
outstanding
♦
'
♦
'• '
f
U
,
$281,000,000
280,768,553
280,136,379
278,749,814
53,011
$280,821,613
$280,189,391
474,030
476,425
527,857
$279,712,965
$278,255,899
652,417
time
$281,000,000
$280,347,582
any
CM CO H o o o~ o o o
53,060
at
1,287,034
2,744,100
Outstanding—
Total
public debt
——
Guaranteed obligations not owned by the
gross
annual
capacity of
128,363,090
■
Total
,
Balance
under
tons
33,542;
*
gross
teed
public
debt
obligations
outstanding
subject
not
to
and
public
guaran-
debt
face
amount
above
of
obligations,
authority
$278,783,756
obli¬
debt, limitation——
109.8
71.6
.
Meats
All
111.7
Jan.10
foods
of
STATUTORY
Deduct—other
Jan.10
products
Processed
£82.023
$1.70000
$1.70000
107.774c
—;
U.
(per pound)
U. S. GOV'T.
gations
commodities
Farm
£91.401
$1.70000
I
2,718,912
OF
100):
Commodity Group—
All
£95.694
£82.722
373,140
Dec. 24
PRICES,
2,586,880
Dec. 24
sales
—
726,111
J
Dec. 24
.ttitf
^ajuuR
$78,250
11.500c
,
78.231d
ounce)—
(check)————————
T
Bismuth
members—
Rhort, sales
WHOLESALE
599.331
13.000c
$1.70000
(per flask of 76 pounds)
Aluminum,
—As
purcnases
Other
29.000c
£92.432
$2.60000
2,740,691
floor—
Other
Toioi
$101,570
13.000c
£93.438
i
**Nickel.
730,182
the
Bhcrt sales
Total
28.500c
33.500c
4
—
99%
(per
Quicksilver
99,209
sales
Total round-lot transactions for
Total purcnases
"31.970c
,>.
$1.70000
429,010
18,760
Dec. 24
Total
33.500c
$103,769
Louis
Straits
York,
Gold
Magne^iifm
Dec. 24
sales
off
£103.202
36.470c
33.000c
"
York
New
§§New
1,536,220
Dec. 24
-
floor—
purchases
initiated
£104.216
£107.781
.y'
issuable
tBased on the average of the
-reducers' and platers' quotations.
§ Average of quotation on special shares to plater.
-Domestic five tons or more but less than carload lot, boxed.
§§Price for tin contained.
**F.o.b. Port Colburne, U. S. duty included,
ttAverage of daily mean of bid and ask
quotation at morning session of London Metal Exchange.
ffDelivered where freight
♦Revised figure.
from
East.
St.
+Based on the producers' quotation.
Louis exceeds
0.5c.
'
14.800c
^
Exchange-
York
New
London
Tin,
1,285,783
1.212,090
.Dec. 24
•
transactions
£112.638
33.000c
i
15.000c
15.300c
£108.165
36.470c
Laredo
pound)
:
(per
Sterling
Silver,
250,443
*
.Dec. 24
the
•(
31.036c
"
*
.Dec. 24
Other
Other
29.700c
15.500c
15.358c
pound)
97_
and
Silver,
.Dec. 24
sales
(per
Sterling Exchange
Short sales
Total
I5.558c
£113.344
ounce)-—-
pound)—East
(per
Cobalt,
Silver
MEM-
purchases
on
i.
(per pound)
ttZinc, London, prompt (per long ton)—
ttZinc, London, three months (per long ton)
tCadmium, refined (per pound)
§Cadmium
489,140
Dec. 24
Dec. 24
Initiated
pound)
(per
Louis
_
Dec. 24
:
-
transactions
Total
42.964c
43.860c
'
Zinc
320,110
TRANSACTIONS
sales
sales
months,
{Cadmium
TRANSACTIONS
York
St.
Ant'imony (per pound) boxed liaredo
(SHARES):
Ehort sales
Other
East
^Antimony, New York boxed
Antimony (per pound) bulk,
Transactions
Total
as
ttThree
STOCK
BEKa, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
of specialists in stocks in which registered-
,
43.480c
44.665c
—T
—
„
—
sales
ROUND-LOT
$39,344,687
311,700
*
New
Common
sales—
Short sales
Total
$48,269,166
dealers—
•—
STOCK
QUOTATIONS)—
tJPrompt, London (per long ton)—
Dec. 24
of shares
tXlilAMUE
FOR
Total
Common,
1,166,139
Dec. 24
i.
ROUND-LOT
J.
"
7,016
988,119
dealers—
sales
Round-lot
Domestic refinery
Export refinery
'
1,173,155
6,552
306,670
TOTAL
769,032
1,043,895
$52,104,771
by
$50,161,993
Dec. 24
Dec. 24
Other
;
1,050,447
Dec. 24
sales
1,036,822
Dec. 24
Short sales
,
$49,353,310
Number of shares—Total salea—
'
•
868,377
$55,172,447
J
Round-lot
>
1,053,400
$58,484,761
Dec. 24
sales
Cellar value
M.
&
Lead—
sales
Customers'
1,090,709
Dec. 24
value
(E.
Average for month of December:
Copper tper pound)—
purchases!—t
Number of shares
*
METAL PRICES
?.
136
(396)
The Commercial and Financial Chronicle
.
.
Thursday, January 19, 195
.
Two Bullock Funds Fund Index
Mutual'Funds
Start Time Plans
Periodic
Nation-Wide
y
Begun By Vance, Sanders for
Group Securities, Inc.
Incorporated 1933
for
investing
income and
growth
through
common
selected
for their invest¬
ment
A
stocks
For the first time in the
30-year
mutual investment
PROSPECTUS ON REQUEST
nationwide
a
dealers
by
underwriter,
Company.
from your Investment dealer
a
mutual
Vance,
two-day
Distributors Group, Incorporated
seminar
63 Wall Street, New York
5, N, Y.
cial centers throughout
the
meetings in major finan¬
coun¬
try is being arranged,, the first of
which was
h'eld
at' the
Parker
House, Boston, this month.
investment
program is
a
in that
Vance,
Objective of this Mutual Fund is
possible
I ongTerm Growth of
Capital and Income through
Diversified Investments in the
Chemical Field
including the New Science, Nuclear
Chemistry.
Prospectus
on
somewhat
cost
by
F. Eberstadt
Co.
Inc.,
Manager and Distributor of Chemical
Fund, Inc.
65
Broadway, New York 6, N. Y.
of
limited
the
direct
in
small
the
to
Incorporated
portfolio
the
io^term
GROWTH of
'
capital and
have
income-
up
of
been
mutual
interest
some
to
mutual
P"mc
ders &
Co., outlined the
the
meetings
background
but
the
useful
the
on
de¬
invest¬
industry.
in
Mark L.
D.
the
Valentine, of Wash¬
C.,
Dickson
Smith,
sales
planned
training
to
hold
the
program in
next
Chicago
seminar will
probably be held in
Boston for the
benefit
who could not be
fully
of dealers
accommo¬
dated at this time.
,
:
is
investment
your
profits realized
is
Investment
are
from
objectives
possible
income
•
for
Prospectus
Co.
may
be
re¬
Pacific
The
in
Railroad
tinuance
of
Co.
were
convertible
sold, while it
the year
Co.
series
Co.
1955.
1956.
Telephone
5s
of
G
1958
of
5s
Bond
and
forward
business
high levels in the
called
were
future
con¬
activity
new
"Prospects
man¬
to
year,
in
ac¬
the
long-range
equally bright," he
"There may be moderation
said.
at
for
look
the
rate
of expansion in
1956,
building and automo¬
home
bile
production
Services, Inc. IDS, largest invest¬
tailed.
ment
industries are, however, expected
to be of proportions which
can
the
corporation
nation,
of
its
manages
$1,800,000,000
in
kind
than
more
net
in
assets
725,000 investment accounts
of holders of face-amount certifi¬
and
mutual
fund shares
able
somewhat
Possible
be at least
and
serves
declines
cur¬
in
these
partly offset by favor¬
trends
elsewhere.
In
other
industries,
greater production is
indicated by announced
programs
for building more factories and
is¬
by its subsidiary and affili¬
for
modernization of existing
plant facilities which will involve
large expenditures. New and
better
Its
this
Fund
capital
and
shareholders.
upon request
Co.
marks
—/ ■
Chicago
—
'
Atlanta
Los Angeles
and
income
heights, the year
the highest economic
ing
1955
Fundamental Investors, Inc.
products
methods
level
pearing
reached
in
the
history of our
country," Mr. Fitzsimmons stated.
ment at
"As
of
on
_
year
new
an
indication
of
the
and
services
Relatively full employ¬
wages and salaries,
business
and
dividend
taxes, are factors which
will affect the immense volume of
disposable income and ultimately
result
growing de¬
to
ap¬
the result of incessant
Federal
increased spending for defense
the
manufactur¬
constantly
returns, and possible reductions in
past year has not been based
on
and
are
rising
increased
vigor
economy, it is significant
the* rapid upward trend of
materiel, but
as
research.
our
and
in
markets
more
products.
"Business %
should
maintain
and
improve their high standard
year
living.
for
our
■»'
activity " '-this
yea r
at
high levels,
continue
possibly
at
a-level
approaching
ling the record
or
year
for
the
equal¬
even
1955."
-
'
LlX *
*
*-
Mutual Investment-Funds
'Ji
Diversified Investment
Fund, Inc.
-
A
./
;
a
a
designed to pro¬
diversified, managed investment
in stocks selected
on
a
free
I
CALVIN BULLOCK
Name.
Address.
•
" v.
■
.
# Balanced Series
Preferred Stock Series
*
Dividend Series
# Growth Stocks Series
Prospectuses availablethese
mutual
local
STREET, NEW YORK 5
•
• Stock Series
Diversified Growth Stock
Fund, Inc.
booklet-prospectus by
Established 1894
■/.
• Income Series
the basis of pos¬
x&ailing this advertisement to
ONE WALL
r'..
v,f'"*7 >
•
sible participation in Canada's
growth..
Send for
'
• Bend Series
Manhattan Bond Fund, Inc.
U. S. mutual fund
-
►'
-
:
vide
fo
payment by the issuing companies.
with
of
!s
1955
$har
cording to Joseph M. Fitzsimmons,
President of Investors Diversified
goods
:
del
holdings of South¬
Gas
and
mands of the American
people for
■*<■**
Western
income
investments in Baltimore and Ohio
share from
investment
looks
that
New York
-
Railroad
and
Co.
1984.
Fund's
4V2S of 1973
Shares, Inc.
27,
2004
of
5s
Natural
ern
Central
of
4s
Railroad
benture
capital gain dis¬
Jan.
first
in
High Level Business Activity Forecast
the
Lord, Abbett
»<
of
long-term
growth
dealer.
Berkeley Street
Boston, Mass.
payable
Wisconsin
$25
holdings
bervice
Corpora¬
debenture
5xAs
o
capital
1967,
as
a
con
$400 billion per
*
,
a
tribution of 61 cents
It
investment
Lincoln
little
American
70th
"With the nation's gross
produc¬
tion close to the record rate of
The Parker Corporation
200
tion
as
today declared
sued
each
available
Fund's
be
$250 with
as
as
Dividends
Selected
at
fund
little
accompany
its
of
quarterly dividend, re
ported that recent additions to th
may
ated companies.
prtncpab
on
as
'
secutive
as¬
Selected Dividend
cates
A Common Stock Investment
Fundi
prospectus
for
13
>.
message
distribution
eluded
payments
more.
ing
; '
plans
page
Manhattan Bond Fund, Inc., in
shareholder
plans
aggregate
on
Reports Changes
$350,000,000 at the end
.
Professional
sessions,
aTobtainable unthou«
A
with
agement
Boston
fund «h°se
risk of
such
for
seasona
there has bee
Manhattan Bond
divi¬
paid and the plans
may be terminated at any time
without penalty.
and
early next month. Later, another
pick
with
allowing
Continued
Mac
types of share registration
Following the
attend¬
vanced,
fluctuations, and
Bullock-managed
Bullock
invested
Baxter, of Chi¬
Baxter, of Boston. Charles
is
over
The
discus¬
^jge anINCOME
"It,.-
Shares
automatically
make
all
on
1955.".;
or
to
funds
started
who
may
ideas by
sets at
of
shares
because of slackening in the de
mand for passenger cars at retail.
But lumber loadings have ad
funds
service.
Vance, Sanders partners
are
it
able
future
mutual
participated
to
be
purposes
selling
in
who
fund
reinvested
provided
and
material
of
to
-v
;
Following an opening welcome
by Mr. Vance, William F. Shelley,
managing partner of Vance, San¬
newer
others
successful
funds
mutual
apparently
moderate
using the principles of 'dollar
averaging.' We are pleased
cost
periodic investment plans.
ing."
A
selling.
and
Kinnon discussed matters
relating
relatively inexperienced
salesmen, we believe that it will
be
mutual
dends
mutual
A.
project,
clined,
May,
periodic
Dividend
making further gains
production has de
Automobile
in
first
for
of
the
/.appeal of this, method of buying
chair¬
as
Arthur H. Haussermann and Thos.
announcing
signed in many aspects for
also
served
ment
ington,
"While the program has been de¬
possible
plan
available
cago, Kimball
individual
and
I
the
was
"Purchases
Clayton Du Bosque.
Both
are
partners of Vance, Sanders & Co.,
in Boston, and have had broad
experience in the field of invest¬
sions
of
Vance, Sanders & Company said:
Established 192 5
Thrift
It
purchase
meetings, assisted by
who
Henry T. Vance, senior partner of
Investors
Piatt
the
-Other
make
number
by
of
ment company
was neces¬
instances
in
requested
In
Plan
1949.
capable of
offering commercial bank
}.
Richard
velopment
houses.
*
Dividend
Chapman discussed profes¬
sent."-
widespread in¬
dealers, it
some
places
introduced
investment
under tnis plan accounted for over
management,
Hagemann spoke on "Build¬ \10% of all Dividend Shares
sales
ing Business on Confidence in You in
1955," according to a Bullock
and
the Profession You
Repre- spokesman, "reflecting the wide
of
"round-table"
relatively
groups. Due to the
terest among
met
seminar, enrollment
to
reductions
WMill;
half
the
nature of the
sary
effort
the balance
being
fee for each registrant.
request
&
cooperative
the
Sanders will absorb
over
Because
is
firms,
with
a
plan
cars, so
Mr.
man
Although initiated by Vance,
Sanders & Company, as the coun¬
try's leading underwriter of mu¬
tual fund shares sold
through in¬
The
Mr.
erating at full capacity, and ther
has
been
a
shortage of freigh
that steel output and mis
cellaneous loadings have been in
a
Trust Company.
Calvin Bullock
National Bank of Boston.
&
by
periodic payment
administered by the Irving
on
sional
A continuing series of
dependent
purchased
Chapman, President of the
Merchants National Bank of Bos¬
ton and H. Frederick
Hagemann,
President of the Rockland-Atlas
fund
Sanders
Dealers
P.
formalized sales training program
in mutual funds is
being made
available to independent invest¬
ment
quality.
business,
company
announced
were
index
has advanced.durin
month, continuing its ha
bit of making new high records.
The steel industry has been op
Calvin Bullock, Ltd. As a
result,
all of the mutual funds
sponsored
by the Bullock firm may now be
Among the guest speakers who
opened the sessions were Richard
history of the
ness
the last
Nation-Wide Securities
Company
Training Program Now
High
The Axe-Houghton weekly busi
for
Fund and
STOCK FUND
A mutual fund
At New
plans
the purchase of shares of Bullock
By ROBERT R. RICH
THE COMMON
OF
accumulation
investment
funds
on
through
firms,
or:
hugh w. long and company
INCORPORATED
Elizabeth
3,
New
Jersey
Information Folder and
Prospectus
on
Request
NATIONAL SECURITIES & RESEARCH
CORPORATION
tiglabl ixhed 1930
120
Broadway, New York 5, N. Y.
*-
Number 5460.».The Commercial and Financial Chronicle
Volume 183
Continued
from
136
page
high
*
imports.
Producers'
lead
sales have remained high.
decline in automobile pro¬
duction is attributed to overpro¬
further
rise
in
electric
duction, causing excessive dealer
stocks, at least of some makes in
power
some
The
•
Axe-Houghton
index
of
durable goods raw materials prices
has
also
advanced, owing
in
creases
steel
and copper
prices.
marked
any
A
reviews
mously
of
further
decrease
the
production
the
high.
in
that
little
do
a
spread
and London
This
of
course
to
obscure
in
cumulation
fabricators and
in
ders.
But
another
world
An
stocks
even
then
strike
index.
decrease
zinc
of
Dodge
in
turn
figures
on
on
the
sharp
allowing
showed
up¬
a
November,
seasonal variation.
orders
have
steel
of
tion
for
retraced
the
structural
large
por¬
decline.
The
a
1953-54
net
for cement, lumber, and
building materials has re¬
mained high.
And, according to
Department
expenditures
of
for
of
the
the
in
housing
new
declined
or¬
there
half
has
Chile
and
remained
trends
in
the
construc¬
low.
the
entire
of
sharp advances
last'
a
that
so
from
the
winter
of
lost.
downward
spring,
tracts
in
trend, since
engineering
con¬
awarded, although the
are
cline
is
from
high and inventories low, despite
level
so
that
Unfilled orders for zinc
the
to
has
Engineering News Record
reports
suggesting the
similar increases
increase
1953
been
has
The
started
throughout 1955
summer
1954
units
an
de¬
extremely high
the reduced
volume
Weekly
Assistant
was
the
time
he
position.
torial
and
with
the
300
A.
bonds, preferred and
Foreign
the
common
possibility
A mutual fund investing
common
he
wnere
was
•
edition
of
this
Foreign
new
a
on
of
the
He has
by
U.
S.
&
Foreign
Oil,
42%;
•
New
York
and
Fi¬
nancial
Writers Association and
various other clubs and
organiza¬
tions.
He will make his head¬
Build
'
.
or
Association
announcement.
E.
Welch,
tion's
Mr.
with
Representatives: Boston .Chicago • Dallas • Los Angeles • New York "Washington, D.C.
Clark
is
dend
of
has
You
Bullock
Shares, Inc.
and
If
as
We
Mr.
in
—V
vn;
Welch
Springfield,
resident of Bronx-
a
ville, N. Y.
is
the
Executive
University
and
has
been
associated with
Wellington Fund since 1937.
or
ciated with
New
COMPANY
Investment Advisor and Principal Underwriter
Texas
National
Bank
P.
O.
BOX
Telephone: CApitol 7-0211
Bldg., Houston, Texas
871
Bell Teletype: HO 566
York
and
v
R.
L.
JUDY
of
vestment
has
Co.,
Stock
with
eral Reserve Bank of
Treasurer
TEXAS FUND MANAGEMENT
year.
through
—
our
building
you are
.
.
.
a
Mutual
purposeful,
states, two
the
the
For
help
from
Area
our
your
are
more
time
your
organize and
to
with
Funds
productive
to
direct
other
organization than if
our
among
Many
they
f
very
in
ever
operated
<
the
out
and have
how you
more.
can
Call
or
top
high
did
have this
write
as
salesmen,
you
exclusively under policies
are
selling,
now
that
Some of
producers—and
income
before.
same
Most
building
are
opportunity
in
our
earners—
brackets.
All
have
represented
personal estates through monthly profit-sharing bonuses.
Find
plus
work.
paper
progressive t organization
than
in
manager
community,
own
territories, and four foreign countries.
business.'
earning
of
independent dealer.
in
profit-sharing plan
our
to
are
up
,■
earn
7
more
King Merritt, President.
13 years prior to that he was asso¬
change firms
local investment dealer
an
Vice-
Pennsylvania
of
yourself
routine, non-productive
net more
representatives
in
President of Wellington Company
and Wellington Fund. He attended
your
period last
same
with tested sales-getting ideas and material.
all
qualified
are
can
deal
41
born
was
for
constructive
devote
can
you
you
built
Mass. and is
be obtained from
amounted
sources
$5,759,348 against $1,967,333 for
profitable business in
Divi¬
director
a
get
a
handle all
we
since ■' 1929
Vice-President of
a
will
You
Clark
may
gains and other
top commissions
on
estate
continuous support
occupied by Mr. Welch.
A
graduate of Williams College. Mr.
Prospectus
31
rewarding profit-sharing plan
a
an
building
associated
now
SECURITIES.OF THE SOUTHWEST v
com¬
income compared with $10,734,380
and
You will participate in
Vice-
formerly held the Association post
MUTUAL FUND INVESTING IN
distributions
You will receive top commissions
an
the Associa¬
been
the
KING MERRITT &
Philadelphia.
been
elected
Commonwealth
S.
Ex¬
Fed¬
Waldo
CO., INC.
391 Grand Avenue, Englewood, N. J.
In¬
From New York
Cole¬
LOwell 7-0100
City Dial MUrray Hill 8-8840
man, President, announced today.
He
also
becomes
Treasurer
of
North
American
Securities
Com¬
North American Investment
Corporation, and Commonwealth
Stock Fund. Mr. Judy has been
Assistant Secretary and Assistant
pany,
Treasurer
since
Stock
of
these
companies
1951, and of Commonwealth
Fund
graduate
of
since
1952.
He
is
a
the Stanford Gradu¬
ate School of Business.
a
in 1954; distributions from capital
With the King Merritt organization
of Carriers and General Corp. He
A
chemical
1955
shares in Mutual Funds.
Information Com'
" "'V
^ ^■'■■4;
Calvin
and
Wholesale
The
the estates of satisfied clients
selling
The
Executive
Chairman
Public
mittee.
,
to
rose
Invest¬
of
Companies, according to
elected
the above
"Investment Company Managers since 1925"
funds
prised $12,048,274 from investment
profit-sharing plan—while
Chicago.
Association
San Francisco 4, California
Dec.
on
Based
President
of
Wellington
Fund,
Inc., Philadelphia, has been
Building
mutual
BETTER OPPORTUNITY and SECURITY
FOR MUTUAL FUND SALESMEN
been
seph
Prospectuses available from Investment Dealers
share-
to
of the National Securities
of
and sponsors of-the series.
Dec. 27.
native of Baltimore and
member
ment
SECURITIES COMPANY
in
including a distribution of
$3,584 per share from net realized
capital gains. The latter was paid
Association also reported that Jo¬
Russ
stock
common
1955,
service
long-term growth of income and principal.
Monoged ond Oisfrib^d by NORTH AMERICAN
Dividends Up
s
distributions
feature
a
companies selected for the possibility of
.
138
page
par to $1.
paid out in 1954, it was announced
Dividends equivalent to $4.3733 ' todav bv National Securities &
per share were paid on U. S. &
Research Corporation,
managers
editor on the New York staff and
later in charge of the China-Bur¬
National
in diversified
on
record high in 1955 at $17,807,622 compared with $12,701,713
the
weexly,
on
share
new
assets:
Administrative Committees of the
stocks of well-established
addi¬
stock
additional
one
the
Ltd., New York, has been elected
.Chairman of the Executive and
■
one
value changed from
par
ROBERT E. CLARK, Executive
Vice-President of Calvin Bullock,
FUND
360,000
capital
Army Air
Force during World War
II, later
transferring to "Yank," the Army
quarters in
long-term growth of principal.
STOCK
split three for
was
Series
other magazines.
a
provide reasonable current
of
National
to
in
of
•
represented the following ap¬
proximate
percentages
of
total
served
basis
1955 stockhold¬
for
Continued
Common stock investments held
He
CORP.,
at
$15 per share for each two
shares held. Total amount of stock
its
Company, editor and publisher of
two weekly
newspapers in New
York State, and editor of several
Schenectady, N. Y.
investing in
income with conservation and the
of
Frank
shares
owners
attended Hackley School at Tarrytown, N. Y., and Union College in
COMPANY
tional
Munsey
He is
INVESTMENT
stocks selected to
present
subscribed
ers
Total
magazine.
(WomiiieaAii
over
his
assumed
He has been in the edi¬
ma-India
A balanced mutual fund
and
Managing Editor at
and
SHARES
March and April,
no
Fi¬
1945
since
&
publishing field since
1930, and was previously an edi¬
tor
the
subsidiary
with the merger on June 30,
1955,
the common stock of United States
Mr. Johnston has been with Bar¬
Business
be
.
a
In connection
ron's
industry have been some¬
what conflicting. The number of
since
corporation
portfolio securities.
1954.
National
may
-
net asset value of $21.09
per share as of Dec. 31, 1955.
In
ferred stocks for retirement mainthrough the distribution of
and
nancial
report
reports
ly
&
for
as
,
of' ^Telovision-Elec¬
reduction,
the
shares
Closed-end investment company,
subsidiary redeemed their
outstanding first preferred stocks
and
acquired their second pre¬
joined
Management
Chicago,
sponsors
poration, announced today.
average
a
the
1955
times"
such
former
President of the Management Cor¬
Recent
by
annual
at
NATIONAL
out¬
30,
has
automobile
in
stock
common
1955.
Shares
Corporation,
and
purchase of
common
amounts, at such prices
deemed advisable.
$128,950,171 as
1955, equal to $38.95
31,
share of
such
that directors
the
of
During the first six months of
Johnston
and managers
tronics Fund,
value
authorized
corporation's
"in
United States & International Se¬
curities Corporation on June
PERSONAL PROGRESS
A.
Foreign Secu¬
merger with its former
Inc., and sponsors
of Hudson Fund,
Inc., as director
of information, William H.
Cooley,
This
Dec.
first
sonal variation.
Paul
&
standing. This is the corporation's
equipment in the first quarter of
1956 are expected to be the
high¬
est on record, allowing for-sea¬
Television
asset
per
Commerce,
plant and
new
States
rities Corporation, closed-end in¬
vestment company, reports total
other
the
have
the
United
Untitled
The report states
Of $128 Million
for
the
prices,
probability
here.
hand
moderate,
leaving the present level far above
that have occurred in London lead
and
Foreign
Reports Net Assets
been
striking develop¬
ment has been the
in
to the Federal Reserve
like
lack of any cor¬
have
prob¬
tion
inventories
more
the
not
There hd^alsp been ai reduction
the output of consumers' du¬
adjusted
ac¬
since
letdown
a
according
No¬
steady
a
responding increase in unfilled
been
should
rable goods other than automobiles
statistical
October and
a
other
137
drug, 18; metal and mining, 13.7;
manufacturing and miscellaneous,
10.2; merchandising, 6.1; electric
utility, 1.9; natural gas, 1.8.
U. S. &
production,, has
to
of
W.
some
«!-i
York
New
copper
owing
F.
total contracts in 37 states
retail
of
position showed signs of moderate
vember
ex¬
demand for automobiles, although
the letdown has not been severe.
prices.
deterioration
re¬
is
prices have held
between
domestic
overproduction, since
sort
jiwAV- '
•
to
ability that there has been
harm
industries
sufficient
allowed
be
automobile
other
be
output
prevent
demand continues to be high
year.
closely to the peak of 50 cents per
pound. Copper imports have de¬
clined, possibly because of the
The
in
travagant sales records of the last
industry because the
from
London copper
wide
decline
except in comparison with the
unani¬
opinion
would
steel
demand
so
tail
The steel
indeed
are
stocks
sat¬
very
demand
moderate
further
weakening
in the demand for steel.
to
car
The
well
so
summer.
scrap
should
indicate
prices
car
quite
up
.
slight and hardly enough to
trade
Used
held
down from their peak of last
are
A. reaction in steel scrap prices
which followed this advance has
been
not
recently, although used
in¬
to
localities.
have
production.
still be considered
may
~ isfactory.
The
Mutual Funds
a
•
(39.7)
A
NATIONWIDE
ORGANIZATION
SPECIALIZING
IN
MUTUAL
OFFICES IN PRINCIPAL CITIES
FUNDS
138
The Commercial and Financial Chronicle
(398)
Continued
from
with
137
page
is
1,080,000
-
share,
shares.
87.6 %
Common stocks constituted
of
the
3.5%,
Bonds acounted for
Government obliga¬
year.
U.
S.
tions 8.7% and cash .2%.
the
During
received
"
tion
59.3c
per
•Total
capital
a
On
years of operation.
The original
net assets value was $12.50 per
1938
and
securities sold.
had 2,680 stock¬
on
The
the
at
pared with
of
end
1955
com¬
stated
that
net
Limited.
of $232,362,-
man
Corporation's - capital stock
outstanding—the highest ever re¬
ported in the 26 years of its oper¬
as
,
included
Service Company of Indiana, Inc.,
4.20%
interest and
after
royalties for the
year,
taxes,
was
and
expenses
paid during the
year as follows: On the preferred
stock, $269,685; on the common
stock, $900,110 from net income
from dividends, interest and
last
mon
the
on
income
net
share
from
and
funds
this
group
than
more
mutual
shareholders,
President,
will
year
the substantial
60c
of
corporation's
fiscal
Cameron
amount
per
usual
of
Of
this
month.
The
the
sharp
in
increase
of
earnings
the funds
Mr. Reed
in
and
asset
1955.
pointed out that divi¬
dends from net investment income
amounted to
ends
Hit New Peak
capital gains dividends.
1955,
a
capital
gains
Total assets of the
investment
-
Net
unrealized
portfolio
appreciation
securities
to
amounted
$132,600,910 on Dec. 31, 1955, as
against $109,246,840 a year before.
$8,918,685, compared
of
Common stocks constituted 91%
net asset value at the end of
the second quarter with U. S. Gov¬
ernments
and
net
cash
items
funds
comprising
the
$265,432,004
the
on
shareowners set
number of
new
a
record at 100,013 at
H.
J.
the yearJr., Presi¬
Simonson,
search
$13,695,645, representing 5.9%.
concluded
investor
the relatively low yields
A MUTUAL INVESTMENT FUND
Prospectus
CEORCE
A.
845 LAND TITLE
upon request
BAILEY
&
well
as
This
of
all
to
concern
investors, private
indicates
the
investment
growth of successful
corporations."
American
Selected
assets
RIttenhouse
Shares total
31, 1955, as report¬
ed by Edward P. Rubin, President,
were $52,122,909 or $9.84 a share,
compared with $39,551,859 or $8.88
a share on Dec. 31,
1954. In addi¬
tion to the gain in
asset value
per
share,
50c capital gain dis¬
was
paid
in January
tribution
bringing total gain for the
$1.46 a share. Dividends
1955,
to
year
declared
in
from
investment
totaled 30c
1955
income
share, com¬
pared with 29c in 1954. Outstand¬
ing shares at Dec. 31 of 5,294,967
compared with 4,455,113 a year
a
.
Dec.
31
common
stocks
investments in
had
115
companies, the five largest hold¬
ings by industry being oil 11.1%,
steel
10.5%, metal (non-ferrous)
8.2%, building 6.2%, paper 6.0%.
in non-ferrous
metal, 2.4% in oil,
2.9% in railroad, 5.4% in steel;
Decreases
of
2.4%
in
building,
3.6% in electric utility, 1.7% in
ernment bonds and net cash.
to
while
shareowners numbered 89,051.
net
assets,
Nov.
Series
for
a
the
of
sales
in
Securities
National
totaled
1955
$52,110,968
weekly average in
excess
of
$1,000,000.
net
to
inter¬
expanding
year.
assets
earlier,
and
represents
an
asset
increase of 198%.
He attributed the high
"the
fiscal
totaled $7,962,199 on
end of the fund's
This compares with
of $2,673,763
a
year
1955,
30,
Net
asset
cluding
the
among
the
at
fiscal
accessories
auto
were
with
18%
fund's
year-end
equip¬
and
of
net
assets,
railroads
8.6%, non-ferrous metals
mining 8.2%, machinery and
and
machine
tools
7.2%
and
retail
trade 6.4%.
SOVEREIGN
INVESTORS
ported total net assets
1955
of
30%
increase
1954
when
$1,587,893.91.
net
This
the
over
re¬
Dec. 31,
on
is
close
assets
a
of
amounted
to
$1,222,856.43. During the same
period the net asset value per
share
from
rose
During the
ited
$10.98
there
year
of
number
to
$12.54.
was
lim¬
a
investments
new
added to the Fund's portfolio. For
the most part additional-commit¬
ments
made in good
were
quality
already held.
stocks
common
Science & Nuclear Fund reports
increase
an
in
of
assets
$228,000
31%
for its first fiscal quarter
ended Dec. 31, 1955.
or
The
of
Net
asset
total
boosted
increase
sources
the
Fund
re¬
to
$941,217
on
that date as compared with
$713,115 at the close of its fiscal
year on Sept. 30, last.
The Fund
began
business
last
May
with
assets of $111,000.
$10.76
value
share
a
high
new
increased
to
Dec. 31, last, a
on
compared with $10.10
as
a
share
on
a
share
initially.
Sept. 30, 1955 and $10
Bullock Assets
At New
value
per
distributions
share, in¬
from real-
/
High
Net assets of Bullock
Fund, Ltd.,
Calvin
Bullock, Ltd., were $27,391,699 for
the fiscal
year
ended Nov. 30,
1955, according to Hugh Bullock,
mutual fund supervised by
President.
This
figure
of
crease
assets
at
fund.
of
:
Nov.
on
*
a.
Fund,
$10.26
of fiscal
hew high
of the
a
assets
-r.
share basis, the value
per
Bullock
from
over
establishes
year-end
a
in¬
an
the net
the end of the previous
the
for
represents
$6,270,779
and
year
increased
Ltd.
share at the end
$12.11 per share
per
1954
to
30, 1955. Taking into con¬
sideration
the
of
distribution
45
cents per
share from net securities
profits, the gain for the year ex¬
Institutional Income Fund, Inc.,
$224,415,613
Mr. Simonson also reported that
holdings
ceeded
At the close of 1954 total assets
amounted
gain of
a
The five largest industry groups
On
net changes during
were: Increases of 4.1%
Significant
the year
1954,
a
22%.
Total dividends from net invest¬
ment
income
for
1955
35%
were
cents per share.
These
justed
figures
have
reflect the
to
As
Nov.
of
ad¬
stock
been
200%
distribution made in
March, 1955.
1955,
30,
common
stocks constituted 88.2% of net as¬
sets of Bullock Fund, Ltd.
Longgrowth and capital apprecia¬
tion continues to be its basic in¬
term
vestment objective.
m$
Sales
H<W
helps that really help!
sttt
bring
hitting,
you more
service planned to
sales—more profits. The
most
comprehensive series of timely business
builders and selling aids ever developed for
more
Concord Sales Gain
Sales
proven
1955 set
billion,
$3
sales
1.
fuhos
300%
up
$759,000.
year
all these features:
610,000
67%
Unique sales campaigns tailored to your
2.
Direct mail letters for your
of
a
3.
Continuous research and statistical data
exclusive
use.
on
4.
ACT NOW!
at
information
our
5.
keep you
on top
The necessary
you turn
year
1954
best
when
pre¬
sales
$887,000.
Fund
were
Net
$7,-
1955
year-end, up
$4,562,000 figure
the
earlier.
Joins Hornblower Weeks
(Special to The Financial Chronicle)
Monthly Letter and other special studies
to
the
at
during
from
The
1952
was
from
Fund
record high at over
reported
Mutual Funds.
about
of
vious
specific needs.
Get full
Concord
new
assets of Concord
Offers you
tylUTUAl
today
of
a
were
investment brokers.
6-9242
American
Dec.
at
Nov. 30,
on
represented
advisability
adequate
having
the funds.
BLDG., PHILA. 10, PA.
General Distributor
profits, increased
to $7.45 from
year
institutional.
as
food, 8.7% in the holdings of gov¬
A hard
CO.
on
such securities must be of genuine
SOVEREIGN
INVESTORS
that
reasonable
a
Corporation, reported. The
corporation sponsors and manages
volume
of
forecast at
are
the
$406
backlog of selected bonds and pre¬
ferred stocks seems prudent. How-,
Dec. 31 last as
dent of National Securities & Re¬
of
1956
Simonson
company
mutual
seven
National Securities Series swelled
to
end,
declared.
at
represented 93.7% of assets, U. S.
Governments and cash 6.3%. The
Of $265 Million
June
on
in
the
At
The
had
ordinary income for the six
months ended Dec. 31, 1955
amounted to $2,729,991, compared
with $2,343,457 12 months earlier.
record
reflect
distributions
June,
which
Mr.
ago.
was
Net
be paid or added to shareholders'
accounts
convertible preferred; 5,500
National's Assets
un¬
share
practice
dividend of $1.47 was
that
than $9 million will
amount more
pay
In
Reed,
K.
year,
30, t»)
dis¬
$15 million to
announced.
portfolio.
The corporation also disposed of
com¬
declared in December, 1955.
capital
FUNDS'
Cor¬
its holdings of 2,500 shares Public
been to wait until the end of the
tribute
values
the
invest¬
Because of these
year.
dividend
gains.
UNITED
Petroleum
Amerada
poration, leaving 140,000 shares in
appreciation in the cor¬
poration's assets, a capital gains
per
four
shares
realized
share
$1.82
term
long
of
com¬
stock were 50 cents per
from
leaving 15,000 shares in the port¬
folio; and 2,127 shares of The
Visking Corporation, leaving 10,000 shares in the portfolio; 4,000
paratively large gains and in view
royalties and $3,276,400 from long
term capital gains.
payments
closed-end
estimated
1955.
over
"for
ing 10,000 shares in the portfolio;
companies, 4had
realized shares Anderson-Prichard Oil
capital gains of $5,143,563, equal Corporation;
10,000 shares The
to
$1.11 per share, during the 'Chicago
Corporation
and 4,000
first six months of the Corpora¬ shares Ohio Oil Company.
tion's fiscal year, as compared to
40c per share for the same period
were
Dividend
largest
10%
5,000 shares Corning Glass Works,
ment
$1,164,854.
Dividends
the
Dividends
ever,
gains. Net income from dividends,
Dec.
$61,482,522.
of
Product
billion, industrial production
averaging 3% higher than in 1955,
and total earnings after taxes of
all U. S. corporations estimated at
10%
higher in 1956 than 1955.
/
_
Corporation
predicts
a
ahead with Gross Na¬
year
tional
1,548
shown
by
Robert
31, 1955 net assets were ation— was
The increase for the Lehman, President, and Monroe
C.
Gutman,
Chairman
of
the
year in the net assets, after divi¬
dends of $4,446,195 was $3,033,630. Executive Committee, in the SemiNet assets, after deducting $5,Annual
Report to stockholders.
This net asset value gives effect
993,000
preferred
stock,
were
to the deduction of dividends to¬
equal to $30.82 per share of com¬
mon stock on the 1,800,220 shares
taling 82%'% per share payable
Jan. 10, 1956.
outstanding.
The corresponding
Net profit from the sale of se¬ per share asset value on Dec. 31,
curities for the year was $3,277,- 1954 was $45.25.
266
all
from
long-term capital
The Lehman Corporation, one
of
search
good
during
ment
leaving 42,000 shares in the port¬ representation in common stocks
folio; 8,140 shares The Dow Chem¬ in order to benefit from the
high¬
ical
Company, leaving 50,000 er income provided and at the
shares in the portfolio; 5,000
same time to have an opportunity
shares Johnson & Johnson, leav¬ to
participate in the long-term
of The Leh¬
4,626,856 shares
The
rising secu¬
Simonson ex¬
The 1956 forecast issued by the
shares
Rohm & Haas Company, leaving
',ll;400 shares in the portfolio;
13,800 shares G. D. Searle & Co.,
High
value
shares
4,200
Calgary & Edmonton Corporation
at
asset
and
were
staff of National Securities & Re¬
1,900
shares Hercules
Company; 2,000 shares
Aluminum Limited; 3,775 shares
Powell River Company Limited;
3,000 shares Kaiser Aluminum and
Chemical Corporation; 1,000 shares
The Louisiana Land & Exploration
Company;
sales
of generally
one
prices," Mr.
plained.
included
Corp.
increased
rities
Powder
;
.
was
rshares National Airlines, Incorpo¬
rated. Additions to the portfolio
funds,
,
All Time
the
GENERAL AMERICAN INVES¬
INC.,
four
650, equal to $50.22 per share on
the close of
1,707 at
CO.,
to
Sales
A
1954.
TORS
amounted
the
I
Assets
company
holders
of
Lehman
splits. Cash distributions declared,
over the entire period of operation,
amounted to $12.11 per share from
ordinary income and $9.22 from
'profit
assets
ago.
for the
1955 two-for-one stock
adjustment
after
share
.
sub¬
debentures
tion; 10,000 shares Northern Nat¬
ural Gas Company; 3,500 shares
The
Mead
Corporation;
10,000
including
United
Science
and
United Continental, amounted to
$263,881,004, an increase of more
than $78% million
over a year
distribution of $1.29 per
will
which
9
Fund
distribu¬
annual
cash
to
gain cash
share.
March 6, 1956 the company
mark the completion of 27
and
share
Dec.
its
stockholders $4,651,278, compared with $2,490,distribu¬ 859 a year ago-.
year
ordinary
amounting
tions
,
..
a
Accumulative
made
convertible
America
31/2%, 1980;
15,000 shares Westinghouse Elec¬
tric Corporation; 15,000 shares Eli
Lilly
&
Company
"B";
11,000
shares National Homes Corpora¬
of
United
shares
securities
$5.99
ordinated
the total was $3,546,375.
ago
ized
24%.
of
$9.86 a
year-end
$4,654,987 the day
Christmas, while a year
before
company's assets at the end
of the
on
distribution
in
an
or
$139,082,416,
Dec. 5, made
public
important
factor
in
the
asset
growth of the National Securities
Series during 1955, the year also
"While
pany
of
investment
mutual investment fund shares."
convertible debentures 37/s%,
1967; $178,600 Radio Corporation
$3,-
United Income Fund, with total
assets
outstanding
now
against
$6,186,637,
the
of
est
portfolio additions during
Thursday, January 19, 1956
.
the quarter were $3,000,000 Amer¬
ican Telephone & Telegraph Com-*
securities
from
gregated
970,059.
Mutual Funds
New
1954; distribu¬
profits ag¬
$6,025,905 in
tions
.
.
CHARLOTTE, N.
-
of all Fund developments.
sales tools and aids
—
to help
Laurie
Willis
is
C. —Mrs. H.
now
connected
with Hornblower & Weeks, John¬
ston
Building.
Mrs. Willis was
formerly with Bache & Co.
opportunities into sales.
special Dealer Service
—the program of
fresh
promotional ideas.
ARTHUR WIESENBERGER & CO.
Members! N. Y. Stock Exchange • American
61
TELETYPE:
NY1-420
With
Stock Exchange
BROADWAY, NEW YORK 6, N.Y.
Baker, Walsh
(Special to The Financial Chronicle)
CHICAGO, 111.—Thomas J. Wil¬
is now with Baker, Walsh &
kin
Co., 29 South La Salle Street.
Number 5460
Volume 183
(399)
The Commercial and Financial Chronicle
...
139
'
Continued
from
8
page
'
'
.
■
brokers had orders
\
-
Dealer-Broker Investment Recommendations
Sites—Information
making
r
per
Even
Ohio, West Virginia, Virginia, Kentucky and Tennessee
L. Davis, Mgr., Area Development Division, American
Gas & Electric Company, 30 Church Street, New York 8, N. Y.
gan,
rata
—L.
:
South
Sites in the
Plant
Information
—
R.
—
P.
the
all
fanfare
accorded
visiting royalty the stock of Ford
Co., > came
to
the
Wall
Motor
of business prospects for the new
Main
with a list of securities with attractive possibilities for
1956—Booklet F, G. H. Walker & Co., 1 Wall Street, New
Streets
York
-
part of the world this week.
the
5, N. Y.
uses—Kennametal
Inc., Latrobe, Pa.
Dimensional
Three
plastic base and
vinyl
Maps—On
plastic
feet) $15; United States (5% x 3% feet)
4 feet) $45; California (3Vi'x 4 feet) $45;
x
Stock Original and
fer
f
"
'
';v>.
•" •'
:
*
"
\
--
-
.
Broadway, New York 5,. N; Y. Also
the Texas Company.
.
'
75Anchor
&
a
report on
not
in
the
Robinson Stores and
is
—
Annual report
—
Cascade Natural
Corporation, 497 Securities Bldg., Seattle 1, Wash.
of
Air Lines,
;
Gas &
Water
Ford
the
is
selling 22%
with
to
view
a
vestige
a
Y.;
the
by
of
the in¬
reverse,
created
an¬
mere
Foundation's
the
for
market
a
of
times the; amount
many
stock
fit
Mississippi Valley Gas Co.—Memorandum—Rauseher, Pierce &
being offered.
memorandum
on
Also avail¬
Missouri Pacific Railroad Co.
—
Review
Monarch Royalty
.
San Jacinto
/
7
wisdom
•:tfr
44-50
Pearl
Rhoades & Co., 42
Street,
Toronto
1,
—
—
the
—
& Co., 634 South Spring Street, Los Angeles 14,; Calif.
Co.—New
Cement
Office Square,
1, Ont., Canada.
views—Lerner
|
&
Co.,
markets.
10
v
Corp.—Data—D'Avigdor Company, 63 Wall
Street, New York 5, N. Y.
Scott Paper
Unilever.
j
Company—Report—Thomson
Southern
& McKinnon,
Street, New York 5, N. Y.
Stancan Uranium Corp.
—
&
National Bank
J
Inc.—Analysis—Kidder, Peabody & Co.,
— Analysis — Hill Richards & Co.,
Street, Los Angeles 14, Calif.
—
Analysis -^Southwestern
Securities Company, Mercantile Commerce
Building, Dallas
1, Texas.
Vick Chemical—Bulletin—J. R. Williston
6, N. Y.
& Co., ^15 Broadway,
—
Analysis
and
COLUMBUS,
priced
are
paid
have
still higher
a
authorization
is
standard
stories
ruling
as
for
high
almost
as
five
be
to
secured
and
A
Dividend
a
trying
find
one
fair-
public offering
their*
down
plight is
since it is his job to
to pacify
orders
drastically
This
is
either
or
scaled-
perhaps
—
is
and
of record at the close of business
on
February 10, 1956.
by
j.
f.
McCarthy,
Treasurer.
electrochemical company
-Niagara Falls, N. Y.
<
PAUL, MINNESOTA
Dividend Notice
Manufacturers of Automotive
and Industrial Batteries
NOTICE
DIVIDEND
The Board of Directors
a
per
share
on
the Cumulative Preferred
Stock, payable February 1,
X..
declared dividends
1956,
the
record
of
share
per
$4.25 Cumulative Preferred Stock,
payable March 28,
March
as
of
1956,
the
to
close
stockholders
of
business
1956.
2,
Quarterly
record January
on
20, 1956.
the
1956
the
close
dividend
dividend
Common
24,
today
a
follows:
shareholders of
to
Dividend
declared
January 18,
on
as
Quarterly dividend of $1.0625
today declared
regular quarterly dividend of 5614$
Common
of Directors
The Board
to
of
per
Common
of
Stock,
$.25
per
business
share
payable February
stockholders of record
ANSLEY
of 42
February 2,
WILCOX
as
share
2nd, Secretary
on
February 1, to shareholders of
record January 20,
1956.
Half
President
a
Century of Chemicals
from the Salt of the Earth
A. H. DAGGETT
i.
1905—1955
12, 1955
R
R. I. REYNOLDS
TOBACCO
Common Stock
I
COMPANY
Dividend
Makers
rather large firm
typical. Many of its customer-
c
f
Camel, Cavalier and Winston
The Board of Directors of Central
and South West
Corporation at ils
meeting held on January 17, 1956,
declared a regular quarterly divi¬
dend
of
thirty-five cents (35(9
per
share on the Corporation's
Common
Slock.
This
dividend
is
olders February 29,1956, to stockEayable of record January 31,1956.
IR
SCHEUERMAN,
Secretary
Central and South West
cigarettes
Prince Albert smoking
Quarterly Dividend
quarterly dividend of 70c per
share has been declared on the
Common and New Class B
able
Com¬
stocks of the Company, pay¬
March
5,
1956
to
stock¬
holders of record at the close
J.
CONRAD,
Winston-Salem, N. C.
January 12, 1956
of
15, 1956.
business February
W.
Corporation
Wilmington, Delaware
tobacco
A
mon
LEROY J.
of
1956.
Stock, payable
en¬
particularly true if the
one
dollar
one
HOOKER
customers who
tirely eliminated.
situation in
of
share has been declared on the
Capital Stock of this Company, pay¬
able March 12, 1956, to shareholders
BATTERIES, INC*
price of $62.50. But
customer brokers'
attempt
'
Smelting Co., Limited
per
GOULD-NATIONAL
Committee,
Poo^ Customer-Broker
The
65 =
Mining
twenty-five cents ($1.25) (Canadian)
NOTICES
DIVIDEND
study called in
price of $64.50.
The
NO.
railroad
gauge
-
NOTICES
DIVIDEND
Committee and then
at the
the
December
big institution
tution put in an order for a
sized block
of
members
Hudson Bay
the
of
joint report to trustees
a
G.
the
to
Stock Exchange.
DIVIDEND
Offering of
reportedly held that it was
"buy" at
added
put the matter
Investment
much
Staff
to
Ohio—Robert
been
Building,
New York
the certificates is being made sub¬
issue
with
Company,
staff of Vercoe & Co., Huntington
Bank
to
cording to maturity.
The
has
Powers
3.125%, ac¬
the
Securities
Eighth Avenue.
1971, in¬
to
to
affiliated
become
just to be in the swim, the insti¬
-
The Midland Company
Limited, 50 King Street, West, Toronto, Ont., Canada.
George Westcn Limited
a
~/|
Telecomputing Corporation
New York
of
the offering price.
after
turned in
Cummings & Co.,
Broadway, New York 5, N. Y.
Three States Natural Gas Company
did to
}
Street, New York 5, N. Y.
South Spring
to
prior to start
issue,
the
to
its
to
which
|
Sunshine Biscuits, Inc.—Bulletin—Bregman,
621
up
which
—
Corporation—Analysis—Smith, Hague, Noble
Suburban Gas Service,
100
Wall
Builcfing, Houston
Co., Penobscot Building, Detroit 26, Mich.
17 Wall
11
been
(Special to The Financial Chronicle)
trading in U. S.
contrast, one
said
was
a
Brochure "Uranium iii Canada"
2, Texas.
Greene
over
>
Crerie & Company, Texas
Stubnitz
for
In
Company—Analytical brochure—Smith, Barney &
on
$691/4
points
|
Co., 14 Wall Street, New York 5, N. Y. Also available is a re¬
view of the Chemical & Pharmaceutical Industry, and a
memorandum
doubt
matters
by
premiums
People
Post
%
Boston 9, Mass.
Saaty Fuel Injector
certificates
yield from 2.80%
ject
Colo.—Theodore V.
Denuszek and Orson F. Miles have
=
The Board of
of "when-issued"
-
-
in
the issue in Toronto
Ltd.—Analysis—Burns Bros. & Company, 44
,
Riverside
no
evident from the
was
substantial
7
,,
(Special to The Financial Chronicle)
GREELEY,
Vercoe Adds
Preferred Dividend
What the rank and file thought
Morgan
i
semi-annually
1, 1956 to Feb. 1,
instances,
problem
a
judging
of the stock
Analysis
of
Two With American Sees.
Group
Hutzler
&
maturing
ficates,
Directors
—
dimensions.
$7,800,000
of Chicago, Burlington & Quincy
RR. Equipment
Trust No. 1 of
1956 3V8% equipment trust certi¬
the
going the rounds.
Dept. C-19, 30 Pine Street, New York 5, N. Y.
King Street, West, Toronto
of
staff
Co., First Na¬
offering
are
Experts
expert
more
investment
• —
Quebec Chibougamau Goldfields, Limited
Rio Palmer Oils
many
offering
less
the
to
&
Building. ./;•>>
American
Bros.
associates
solve
to
general public than it
those
Walston & Co., 120
Broadway, New York 5, N. Y.
Bank
on
Ltd.—Report—Carl M. Loeb,
Memorandum
tional
Equip. Trusts
Salomon
against
require
will
in
Ford
presented
Pigeonhole Parking Inc.—Information—L. D. Sherman & Co.,
f
Offers
>"■■■
words,
other
Solomon
a
problem
The
Ont.,
Wall Street, New York 5,"N. Y.
Petroleums Ltd.
In
Tough On
'
New York Capital Fund of Canada
Pacific
of
this
it
added
C. Sudler
distributing
available
stock
And
Limited—Analysis—Canadian Corporation
Service,
Canada—$1.00.
.
the
ability.
Corporation—Report—Kramer^ Woods & Co.,
Information
and
pattern."
Building, Houston 2, Texas.
New Coldvue Mines
of small
common.
SAINT
Sutrp Bros. & Co.,
—
,.120 Broadway, New York 5, N. Y.
been
Amos
prospects
week's
next
Salomon Bros.
crders received to the best of their
Gulf Sulphu* Co.
Texas
DENVER, Colo.—Lois L. Hughes
has
1515
the headache for the
comes
the
allot
•
'
lion of
firms which must "cut the cloth to
Chemical Company,
a
Amos Sudler Adds
The
new
Now
First National Bank
Co.,
(Special to The Financial Chronicle)
.
Inc.—Report—General Investing
Corp., 80 Wall Street Street, New York 5, N..Y.
7
able is
&
Interstate Commerce Commission
literally
i.
Time
of
of this under¬
success
aroused
intention
Company—Analysis—Blair & Co. Incor-
Co., Mercantile Bank Building, Dallas 1, Texas.
erts
Textron-American's
few and
Maurice
—
joined the staff of Shelley, Rob¬
entire
of
tap,
on
Colo.
DENVER,
Biggs and Fred C. Sommers have
of
underwriters
Marlowe
v-
Outside
Shelley, Roberts
(Special to The Financial Chronicle)
clusive.
was
never
porated, 105 South La Salle Street, Chicago 3, 111.
-
so
$30 million debenture, issue which
Aug.
nouncement
' y-/'.';'/
Company.
Indiana
holdings
terest
rated, 44 Wall Street, New York 5. N. Y. Also available is
a bulletin on the Fort Neck National Bank and Bell & Gossett
tj
rather
taking. Quite the
Corporation—Analysis—Blair & Co., Incorpo¬
Western
the
The
Inc.—Analysis—Ira Haupt & Co., *111 Broad¬
Corporation, 111 Broadway, New York 6, N.
Great
its
Co.,
Motor
Ford
which
doubt of the
Dodge Manufacturing Corporation—Analysis—Aetna Securities
v
but
There
New York 6, N. Y.
way,
Two With
marketing the Ford
that just about con¬
and
stitutes
are
Corp. and Stroud & Co., Inc.
group
stock,
is
•
Building.
;-77"V;i
of course,
folio.
Company—Analysis—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
!
Delta
firm
for
went
/diversifying, its investment port¬
Products Refining
Corn
Ford
arranged his
7';'::
;
the
Foundation
>
Mr.
dissimilar since it does
involve
directly,
analysis of Grayson
an
list of selected stocks in the 30s.
a
Cascade Natural Gas Corp.
Gas
issue
same
and
current occasion,
■
Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.
available
the
reasons
and
Texas Utilities Co. with $15 mil¬
of
That
company.
Detroit and
is entirely
the
at
went
relinquishment
financing.
The
Co., 30 Pine Street, New York 5, N. Y.
Also
that
to
own
Campbell Soup Co.—Analysis in current issue of "Gleanings"—
7 -
w
Ford's
;
4
Ford,
then, would have in¬
of the big
back
Glass Corporation—Analysis—Stanley Heller
Hocking
said
was
ended
availableiis
20s,
the
Henry
storv
control
1
:
letter, to
a
in for $25 million debentures
the
as
volved
-
"
*
-■
in
back
>
Associate^ in the offering are:
Drexel & Cor, Union Securities
were
it
Air Reduction Company—Analysis—Harris. Upham & Co., 120
r
;
*
V-.
•
•
*;;
with
The
Founda¬
Ford
interest
to
-ft '.1
-
shares
50
time, the price of such financing,
Company, 50 Church Street, New York 7, N. Y.
'
good
a
781,950.
following week will bring
a
bit of a pickup with North¬
western
Bell
Telephone coming
giving current Federal and State
Transfer Tax Rates—Registrar and Trans¬
Company, Electric Building, Richmond 9, Va;
pro¬
only
customer.
per
than
a
a
elder, in financing.
But
Virginia Plant Sites—Information—Virginia Electric and Power
■J'--
of the
bankers,
sought
the
Street, New York 8, N. Y.
Transfer Tax Rates—Booklet
to
explaining
his
doing, v
Plenty
around
across
recalled an earlier instance
when
Jersey (2V2 x 4 feet) $39.50; Wisconsin (3 x 4 feet)
$37.5C—Dun & Bradstreet's International Markets, Dept. N7,
Church
Streets
and
account
tion
New
99
and
country
the
coated—world (3x2
?7$45; Canada (4
would
shares
underwriting
Sale of 10.2 million shares of
fraternity with a few notable ex¬
the
second
largest
automobile
ceptions, will have plenty of time
producer's stock to the public for in which to
complete the task.
Cutting Operations—Composition carbides for industrial
Steel
yield
more
tion
With
year
7
on
this
single customer, the
broker must accompany this ac¬
6, New York.Securities Outlook—Survey
•'
250
such
distributed
16
allotted
1955—Compilation of stock offerings
Corporation, 65 Broadway, New York
Securities
if
basis
And if
•
Preferred Stock Issues in
—Union
only
of
against
man
about
Jobb, Asst.
V.-P., Atlantic Coast Line Railroad, Wilmington, N. C.
available
equipment, estimated to cost $9,-
/
orders*
available sites in Indiana, Michi¬
on
to
up
and
shares
Plant
ranging
4,000 shares. But the
firm's participation permitted the
3,000
Secretary
140
(400)
The Commercial and Financial
Chronicle
.
actually estimates
BUSINESS BUZZ
a decrease in
the cost of aircraft procurement.
For
as
•
•
Thursday; January 19, 1956
..
"major procurement" items
whole, he "budgets" a de¬
a
of
crease
Behind-the-Scene Interpretation*
from the Nation'*
$104 million.
However,
that
And You
Capital
the
if it assumed
even
and
revenue
estimates
of
Mr.
spending
Eisenhower's
budget—the figures which most
people think of as the budget—•
their most honest
guesses,
were
these
WASHINGTON, D. C.—Presi¬
dent Eisenhower's "balanced
budgets"
for
1956
1957
the
and
fiscal
the
birdies.
years
strictly
are
For
for
'
for the
,
thing.
ous
it
First,
of
receipts
is
and
revenues
of accounts for
President
any
is
estimate
regarded
curacy
en¬
Thus,
balanced
budget"
is
in
as
cluded
,
/required for the,*
annual
what
will
the
be
and
what
On
President
collected
will
this
estimated
in
be
tion
For
alter
ahead
as
with
of
gram
goodies
too
an
ambitious
an
President
recommended
he
cases
to
forgot
include
program
vehicle,
excise tax
go
annually
tures,
the
same.
of
gasoline,
revenues
meet
of
these
n«
building period by willing
re¬
tire the amount to be borrowed
s
acquired a
terrific
inferiority complex since
found out he makes less than
J. Fred
while
construction
under
was
"soil bank"
too
It
is
urged
will
or
be
though little
would
in fiscal
So
the
Proud of the Markets We Make
and
Wire
1956
or
1957,
would
be
as
spent
Ninety
this
item
"balanced
Dallas
Rauscher, Pierce & Company
legislative
First Securities Co.
cost
Lexington
The
Nashville
(counting
Clark, Landstreet & Kirkpatrick
Louisville
The
continuance
Kentucky Company
However,
has
Rauscher, Pierce & Company
much
bank,"
paying
There
H. O. Peet & Co.
up
Republican
San Antonio
Rauscher, Pierce & Company
Angeles
J. Barth & Co.
Milwaukee
served
House
not enough.
quate
Paine, Webber, Jackson & Curtis
come
tween
they
Denver
on
the
sweetening
now
be
and
made
Bosworth, Sullivan & Company
of
or
clear,
6,
to
budget
high-class
tally them).
a
ac¬
a
of
fiscal
might
good
many
short-
or
somewhere
the
within
performance, for
1956.
The Eisenhower
tion disavows
months
into
came
largest
when
ago
office, the
total
spending,
Administra¬
responsibility for
1953, almost
fiscal
of
it
year of the
post
War
II
$74.3 billion.
Accepting the Administra¬
or
tion's excuse, from fiscal
fiscal
1956
(if
'53
achieved),
Administration's
actual
cut
to
the
in
are
other in¬
rising costs,
entirely.
them
For
one
or
addi¬
two
times
in
a
the
current
$34.5
year
billion,
the
defense
for
spending
next
year
man's
establishment—
increase
are
million
the
Tru¬
1954
$13.6-billion
a
imagi¬
nary cut.)
After the
what
Administration
new
into
office,
amounted
it
to
accepted
surrender
a
in Korea,
permitting a cut in
defenses spending. Actual "na¬
security" expenses have
tional
been
cut
from
1953
to
1956
by
$10.8 billion.
In
other
words, the Eisen¬
hower Administration this
year
is
spending
on
all
$800
million
government
"national
Truman
spent
on
more
other
security,"
than
than
all
Mr.
govern¬
other
than "national se¬
in the last and most
expensive year of his Admin¬
istration.
curity,"
it
procurement
—
the
on
indicates
rise.
Yet
the
only estimates a rise
of $258 million in
spending for
the
much
advertised
bigger
guided
missile
program,
$77
1956,
with
fiscal
for
;
President
President
in¬
results
estimate
show
ment
definitely he doesn't plan
costs
its
compare
numerous
the
to
is
will be
$10 billion.
Administration
likes
to
(The
most
be¬
by
revenues
spending of $64.3 billion
come
range
came
of
White
farm
will
dis¬
so
Most observers believe that
without any increase in the size
have
achieved
Nov.
are
the
it would be $35.5 billion.
be
bank"
1955, then suffi¬
comparison purposes, it
be assumed that the esti¬
may
to
is
A proper and ade¬
cannot
have
the
"soil
CCC
on
and
leaders
notice
that
as
1956. (The word
appropriate because
require
revised
;■
-
,
of
President erringly es¬
timated this at $34 billion. The
"soil
to
commodities,
throughout
There
row,
the income -lad¬
on
der.
is
costs
category of considerable
significance to the budget, De¬
fense
Department military
program
marginal
farmer
huge
a
tional
of
myriads of loans
The
income"
boosted
Kansas City
to be
the
However, there is
con¬
the
is
in
is
spending.
farm
than
to
omit
fancy
term
for
farmers
not
to
farm.
kinds.
"low
the
that
are
all
the
more
If it
Economy Appraised
avoid fully estimating
probable
and foreseeable
ex¬
also
Ike
stances which might be cited of
estimated expenditures for fis¬
cal 1957 which either
appear to
bank,"
soil
Presi¬
Estimated Same
-
minimum of $1
$400 million MORE
President
estimates
present level of
servation spending).
of
Houston
Los
Kentucky Company
rev¬
newest
spending
a
the
the
program
estimate
than
countant
some
the
of
Defense Costs
(Agricul¬
"soil
be
seven
as
or
part
these
persed
more
Benson
President, that the
billion,
J. Barth & Co.
far
to
the figures
either
Secretary
than
San Francisco
hand
than
couldn't
farm
"seems"
accompanying proposals"
additional farm aid expendi¬
for next year.
This cor¬
respondent was advised by a farm
ture
take
way,
$600 million less in fiscal'
1957
ex¬
and
perienced
will
under
Commodity Credit Corp., which
cocked
a
It
get
spending in
some
Mr. Eisenhower estimates
only
$400 million for his "soil bank
would
Chicago
year-
'56
the
omission
holds
knocks
budget" and
penditure estimate into
hat.
alone.
to
Although
seems
percent
alone
Muggs!"
foreign give-away program of
commodities, the President
as
tures
Eastman, Dillon & Company
of
cloak
of
errors
mated
dent's
many
as
New York
fiscal
For
.
possible to purchase
as
he
in
large
into
come
operated
con¬
get under way
Underestimate Farm Costs
Correspondents
of
all through calendar
pace
before
Sept. 1 if enacted by
Jan. 31, which is
impossible.
on
Congress that this program
be approved as
quickly as pos¬
sible for even
struction
long
probably
urged
of these costs would be
Federal.
our
Presi¬
guessing of expenditures.
wav.
rights-of-way.
Proud of
the
assumed that the business
would continue the for¬
ciently
"
es¬
would
picture
up,
than
short
1956. it did
expendi¬
but if continued beyond
fell
ward
quickly
are
1957
altered
1957
from
year
gives.
estimate
boom
a
and
up.
projections by $4.5 billion.
billions
We
a
made
vastly
now
were
$25
would NOT
taxpayers, would eventually
some
some
January
fiscal
more
for
ships,
and
[This column is intended to refleet the "behind the scene" interpretation from the nation's
Capital
and may or
may not coincide with
the "Chronicle's"
own
views.]
TRADING MARKETS
Fashion Park
Check
us
quickly through
any
Indian Head Mills
of the above
W. L. Maxson Co.
Correspondents
Morgan Engineering
National Co.
SCHERCK, RICHTER COMPANY
Member
Bell
Teletype
SL 456
Midwest Stock
Exchange
320 N. 4th St.
St.
Louis
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FOREIGN
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SECURITIES
50 BROAD STREET
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TEL:
•,
HANOVER 2-0050
&
Ho. Inc.
SPECIALISTS
NEW YORK 4, N. Y.
TELETYPE NY 1-971
L. D. 123
Riverside Cement
LERNER & CO.
Investment Securities
10 Post Office
Square, Boston 9, Mass.
Telephone
I
at
if it again mate¬
were
a
enue
infor¬
his aides, unless they
figures before finally
Federal
motor
pro¬
in
what
Eisenhower's
plus $2 billion of grants
to cities. This money would be
spent over a period of 13 to 15
years.
Proposed additional
improvements
and
long delayed, the
However,
the
made
.were
error,
Likewise, the President's
billion
and
to
excuse
for
ago
coming forth with them, want
new
President
this performance
it
Mr.
mation,
guesses
revenues
a
with
authorization," explained
Highway Program
Expressing great satisfac¬
noting
show
spend¬
year
when the revised
now
Is $27 Billion
in¬
surplus of $200 mil¬
lion in the present fiscal
year
and $400 million for the next
year.
an
timates
present
current
.figures
Such
dent
spent.
'the
basis
the
estimated
the
a
finitesimal, they think in terms
of
of
for
rialized
this
budget under
legislation cover only
continuance
President
-/. these
in
proposed
the
case
ago
$1.9 billion less than he now
estimates it, and the fiscal
year
still had six months to go after
recommended program for high- /
ways, the dollar estimates in¬
So
if
even
this
year
ing
the President.
surplus
a
of enactment at this
receipts
"submits
January
on
Congress.
of
the
"Pending final determination
''
expenditures.
of
the
the
President
best
greatest
having
What most people think of as
"the budget" is the estimate of
and
the
intentions.
the
of the amounts
:
.
affect»
a political campaign
document, annually issued.
the
ensuing year
for ac¬
away
with
even
possibility
Fourth, it is
when
an
usually too far
session
expenditures.
or
difficulty with the budgetmaking is that the first estimate
and expanded high¬
program,
terprise
Second, it is a list¬
ing of appropriations requested.
Third,
it
contains
some
but
which 'would
new
the
out
major Eisenhower spending
an
ex¬
frequently- not all -requests for
left
as
way
penditures.
legislation
instance,
blithely
A budget document is a curi¬
estimate
the
things would cost in his
so-called "budget."
HUbbard 2-1990
■
r:-:'''''
Teletype
BS 69
@FedFRASER