Full text of Commercial and Financial Chronicle : January 2, 1958, Vol. 187, No. 5704

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•

*+JS

G '

'l ,*hy*

Q*m%bm

ESTABLISHED 1839

lUf. V. B. Pat. Office

Volume 187

Number 5704 ;

New York 7, N. Y.,

Thursday, January 2; 1958

EDITORIAL

The Current Economic
And Political Scene

See It
The

President

now

pondering," prayerfully

without doubt, what he
gress and the. American
he

must

deliver

in the

near

future.

Russian tortoise
vance,

in the

particularly

matter of

scientific

applied to

deficit

ad¬

the

war

losing steam, and questions

many

to be as

quarters

bright

whether

the

future

good

observers

that

not

are

Yet there is

certainty

and

outlook

uneasiness

J about the

The

of the

some

President

alarm about

comparative to
the

has
the

this 1;ime.

our own at

in sufficient

detail

production
basis*, of

and

economic

controversy.

want
ers

to spend.

money

want more pary

•

rolling

U. S.

riod, there

Work¬

are

signs that suggest

are

these

benefits,

long as
year ago, and in some cases, two
years ago, or even longer.
The 1955

stable

dollar.

the

basis

omy,

life -are,

Marriner 5. Eccles

peak

divide, is the

surpassed

Chemical

before

the

telephone:

American

page

Institute

automobile

£. P.

Schmidt

for

page

by Dr. Schmidt before the Business Forecast Sym¬
Press, sponsored by U. S. Chamber of
Commerce,
D. C., Dec. 15, 1957.

the

Washington,

State, Municipal
and

STATE

and

MUNICIPAL

BONDS

Company

MEMBERS NEW YORK AND AMERICAN STOCK

15 BROAD STREET, NEW YORK 5, N. Y.
CABLE:

COBURNHAM

TH.ETVPE NY I-22M

Members

Active

"•

BRIDGEPORT

>'■'
.*

Exchange

BROADWAY, NEW YORK
from

offices

coast

Chase Manhattan
BANK

coast

CANADIAN
BONDS & STOCKS

Exchange

Canadian

DIRECT

;

-".J"'»!.

Expanding
»

Economy i
v

NY 1-2270

WIRES TO

Grporatiot!

Co.

MEMBERS NEW YORK STOCK EXCHANGE

115 BROADWAY

DoximoM Securities

MONTREAL AND TORONTO

Goodbody
NEW YORK

Municipal Bonds
for California's

All

tRAM.

PERTH AMBOY

Exchanges
'

Exchange

NEW YORK 4, N. Y.

DEPARTMENT

Maintained

Commission Orders Executed

STREET

120

Banks and Brokers

TdWi

25 BROAD

COMPANY

Markets

Dealers,

gout/uc&t
u

SECURITIES

ESTABLISHED 1832

Stock

CANADIAN

SECURITIES
New York Stock

Members New York Stock

Bond Dept. Teletype: NY 1-708

T.L.Watson&Co.

American

BOND

REQUEST

Harris, Upham

OF NEW YORK

Dl 4-1400

the

Bonds and Notes

EXCHANGES

•

Net

Housing Agency

THE

THE FIRST NATIONAL CITY BANK

30 BROAD ST., N.Y.

AVAILABL^/

ARE NOW

BANK
and

;

DRUG INDUSTRY"

Burnham

Public

"INVESTING IN THE

DEALERS

•

COPIES OP OUR REPORT

UNDERWRITERS

BROKERS

■v'r ' ';:

BOND DEPARTMENT

Dr.

—-i

CORN EXCHANGE

£$tllflW€6t

not

CHEMICAL

FIRST

has

address

posium

SECURITIES NOW IN
REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a complete picture of issues now
registered with the SEC and poten¬
tial undertakings in our "Securities in
Registration" Section, starting on page 30.

HAnovex 2-3700

sales

since

Continued

Engineers, Chicago, 111.

Municipal

INVESTMENT

econ¬

more than
million in 1955, and
averaged only about one million since then. The

♦An

Eccles

the
as

ing starts snewdteed
have

Continued
Mr.

reached

and will not
be reached to ttfbe year ahead. Hous¬

goods and services which it is able tto produce and wot

sectors

were

been

that <cfll the economy has to

address

and

peaks

Unfortunately, the economic facts

Securities

in for

something more than such
minor adjustments. In a number of

industries

Government,

Stale and

readjustments have;

securities

DEALERS
I

edge now*"

While

profits. And the increas¬
ing ranks of oldsters call for higher.
pensions. However, everyone wants

*An

the

characterized the entire postwar pe¬

Business

confident
independent judgment in this matter, and probpage

have

wants added

Of course,

forces

1939, the^
longest boom in history. It is getting I
old, and there are signs that it is
also getting tired.
:

and fringe bene¬

fit# for' less hours of work.

With only minor interruptions, we*ve
had a steady boom since

form any

Continued

tractive

and

stable

accomplish this is,
always will be a subject of great

political

in possession of the

major collapse.
always,

there are expansionist and contractive
forces in operation, but the consensus
is that the con¬

a larger slice of the
economic pie than it contains. Gov¬
ernment
and
other public
leaders

expansion in the long-ran resuming its strong as
which shonld keep current recession from a

pace

Everyone wants

as yet
given-no indication
military strength of Russia

general public is not

facts

and

for full

are

prices. - How

near-term

employment and good profits.
burning issues that the
President cannot by-pass in either the State of
-the Union or the
Budget Message he must soon
deliver to Congress.
*•, •
These

pnMie projects, and more
housing starts than in 1957; and basic forces for eco¬

successfully meet the Russian challenge.

through maximum
employment, on a

a serious de¬
definite feeling of un¬

credit expansion, state-local

objective of a Democratic Capitalistic society is
provide for its people the highest possible standard
of
living.
This can only be done

of anything in the nature of

verge

pression.

declining new manufacturing orders and
inventories, and plant-equipment spending decline. On
the
encouraging side, perceives: Federal spending rise
in second
hal| of 1958; eased money market aiding

nomic

can

•

'•

CHICAGO

1 NORTH LA SALLE ST.'

>•

takes note of

The

the

:
■

by all. Probof " the -better qualified

confident

are

and 1954, with unemployment ^between
6%, and that recovery may begin before 1958
closes.
Dr. Schmidt's appraisal of
significant forces

ever

nob shared

are

majority

in >1949

other goals so long as
To prevent price rise,

inflationary.

'.;J

5 and

actions

had been supposed by the pro¬
fessional optimists and the
gullible, Of course,

ably

not

Chamber of Commerce of the United-States

and, with respect to Communist military and economic
threat, an about face in our international attitudes and

fears of the future

Director of Economic Research

Chief economist for U. S. Chamber of Commerce
pessi¬
mistically expects 1958 recession to be at least as severe

or reduce other
expendi¬
tures, and extend anti-monopoly laws to labor. The First
Security Chairman believes proper monetary and fiscal
policy can prevent a downturn from becoming cumulative

being raised

are

financing for defense

effect

By DR. EMERSON P. SCHMIDT*

City, Utah

Mr. Eccles would increase taxes

the/'Eisenhower boom" appears to

,:.

Former Reserve Board Chairman triticizes what he
posits
our
failures in the foreign
field, commends the
-Federal Reserve's anti-inflation
fight, and approves of

do about all this?
now

;

are

making
potential? Are we. in serious danger of
being;
further outdistanced
by reason of a relative
shortage of trained manpower in the years to
come? What, if
anything can we and should we
And

questionably well aware of several questions now
plaguing the minds, of a great many. Have we /
really played the hare to a newly
supercharged

i.:

;

Salt Lake

un-

Copy

Chairman of Boards Fiist
Security Banking: Organization

people in messages which

By MARRINER S. ECCLES*

should say to the .Con¬

Price 50 Cents

■

Exchange Place, New York 5, N.Y.

r«letype NY 1-702-3

WHitehall 4-3161

MUNICIPAL BOND
DEPARTMENT

Mmtk of jVtttetrira
; NATIONAL 15vinos

ASSOCIATION

300 Montgomery St., San-Francisco. Cafif.

aua. adm.
• •

• •

•*

library

•

//<?

This

I Like Best

The Security

Forum

Week's

71;

•;

Alabama &

Participants and

Their Selections

week, a different group of experts
fai the investment and advisory field from all sections of the country
Mississippi
Shipping Co.
("The
participate and give their reasons for favoring a particular security. / ri Delta Line")—Alle$ M. Steiner,
Associate Partner, Woolfolk &
(The articles contained in this fornm are not intended to be, nor
Shober, New Orleans, La. (Page
they to be regarded, as an offer to sell the securities discussed.)
2)
'Xjj.
ALLEN M. STEINER
v
the $4 to $5 per share range, a
r„
Th
v
iriorp rpalmtic riivdcnd D8vni6nt«: iFniclwiif•'Tr&ilcr C^o."~^T1ioiti3s F.
Associate Partner, Woolfolk & Shober rather than the present 50 cent //Willmore, President, Thomas F.
New Orleans, La.
annuallv
ner
share
would in- J Wilhnore & Co., Detroit, Mich.
Members New Orjeaus Stock Exchange
lly pc?r sn;are woum i
>
^
the yield
on Mississippi
forum in which, each

A continuous

In 1958

"HANSEATIC"

Louisiana Securities
Bought—Sold—Quoted

•re

Our

nationwide private wire sys¬

tem

provides you with more mar¬

Onr long

pnmrm

New Yorit Hanseatic

good
(4)

lent

1920„

WOrth 4-2300
BOSTON

manage¬

further.

Organized
in 19 19, this
company with
1,155 employ¬
ees operates a

' SAN FRANCISCO
to Principal Cities
•

Wires

excel-'

should read

New York 5
Teletype NY 1-40
CHICAGO V-

•

PHILADELPHIA
Private

//'."

Stock Exchange

a n

ger-f

Specialists in

from*

RIGHTS & SCRIP

of South America
from

air-conditioned luxury
regular

pletely

liners of the Delta Line on

|>fcp0NNELL & CO.
\
Members

American

schedules carried passengers com-

ing from all the 48 states in 1950
to Rio de Janiero, Buenos Aires

Stock Exchange
Stock Exchange

BROADWAY, NEW YORK 8

120

TEL. REctor 2-7815

South American

other

and.

However,
resents
total

;

/ nearest" Competitor.' -Recently" the'?"

ports,

income repsmall portion of

passenger

only

revenues.

■

replacement, of !/'pfcgy-back"

and

Numerous stock dividends, the

capital structure to

in the simple

Air Control Products,

Inc.

Bank of Virginia

First

'v1

signed a new 20-year operating-differential. subsidy agreement with the Federal Maritime
Board of the U. S. Government,

'rS

5.. -'•>

Colony Life Insurance Co.

the

that

assures

operate in competilow-cost for-

can

company

tion with low-wage,

Lynchburg, Va.

IN JAPAN

approximated
50/50 payment basis.
Years ago the company created
and has since maintained

Monthly Stock

Digest, and our other reports
that give you a pretty clear
picture of the Japanese
;

economy as a

million,

6, N. Y.

Telephone: BOwling Green 9-0187
is not an offer or solicitation lor

orders

for

any

are

con-

Current

million.

$35

and

million

rhis

assets

Total

a large
replace$14

about

capital employed in the business
as
authorized
by
the
Federal
Maritime Board amounts to $17

whole.

| 61 Broadway, New York

vessel

size

Present

servative

Nomura Securities Co., Ltd.
r

for

fund

reserve

ment.
our

particular securities

came

can

rise

seen

nor

somewhat.

.earning power
the foreseeable

for

1956
1957

of business,on their

routes,

future;

per

should

earnings

No lessening

trade

for
share.

earnings

$2.15

Stated book value

of $27.76 per

1956 is most

consent-

tively shown, since a 7%%

own-

ership interest (262,500 shares) in

.k€
44.

Lykes Bros. Steamship Company,
(54 ships operating from the
Gulf of Mexico to all continents

Inc.

MASSACHUSETTS
SECURITIES
•

except Australia) is carried at a
nominal
$262,500
when
actual
value is considered to be several

Trading Markets

million dollars.

* Retail Distribution

KELLER BROTHERS

CJ ectisnttee
*-

co., INC.

BOSTON 9, MASS.

Telephone Richmond 2-2530
Teletype

BS-630

V,'Z?*
>

convertible

Comnanv

nate^^
bond,

,vere

$102

very

oft>red

4 and

quickly -

went

$12914

subordi-

'■

near

...

Re they

wrong

debentures at

1955 its

nounced

payments

Shipping

have

Missisbeen uri-

Established 1914

•'
y'

1529 Walnut Street

Philadelphia 2, Pa.
LO 8-0900

115 Broadway
New York 6,

N. Y.

CO 7-1200

ATT Teletype PH 30

is figuring

better. The

maturity on the
present prices is ap¬

being written the four

an¬
reduction of I2 of 1%

in the discount

growth

propor-

tionately

BOENNING & CO.
,

^Federal Reserve Banks have

to
-

was

•

Keyes Fibre Co.

.4 /

■)

John B. Stetson Pfd.
Pocono Hotels Units :

Buck Hill Falls Co.

Whitehall Cement Mfg.
Guarantee Bank & Trust,

A. C.

Reading Co. 3%sf 1995
Phila. Transp.

Co. 3-6's, 2039

Samuel K. Phillips &
Members

As this is

with

1949

Stouffer Corp. / :

proximately 10%.

Fruehauf9
From

Capitol Products Corp.

interest return Xo

^e|-

what

Interest in

/"Fischer & Porter Inc. :

rently selling at $52 or

Mar-

Counter

Y. 9 COrtlandt 7-5680

A Continuing

value,4 without consideration of
conversion, it should be noted that
the Fruehauf 4% preferred, with¬
out conversion privilege/and sub¬
ordinate to the debentures, is cur¬

;

Investment Bankers

\V * Brokers &

11 f Broadway, N.

conversion price of the common
$14-93- As an indication that the
present price ofproper investment
the debentures is
at its

earlv in l956

■'

Tokyo, Japan

the debentures at par. At a price;
of $55Uhis makes the'effective,

Trailer

lnnk nf Fmphanf

$26.24 a share, that

\ Affiliate of

Yamalchl "Securities Co., Ltd.

•

■*

Thomas F.

Wilimore

doubtedly

make

fixed4income

„„„„

Pennsylvania Bldg., Philadelphia
Teletype
N. Y. Phone "
PH 375

COrtlandt 7-6814

practically all
sell .at

securities

prices. This act /itself
should make these debentures
steel.. It had attained its highest worth at least $60 on an /investsaies volume in history in 1955 (a ment basis under present money
60% increase over 1954). Its offi- market conditions. Therefore incers became quite inflation mindvestors will probably have to pay
ed. At the beginning of 1956 the' higher prices than the current figPresident, Roy Fruehauf,4wi.tR ure of $55.\
•
./•
prideful and
honest over-opti- /Fruehauf common stock at this
mism, told everybody who would writing; is, selling, below $9: as
listen that they expected-to do against 38% last year/ but I see
$425 million worth of business no reason to recommend the comduring the year. The final figure mon stock when the convertible
was $255 million, a new record, debentures, with current income,
but a long way from $425 million/ can be bought af anything like
Investors were disappointed and current prices,
dumped the common stock, the
Fruehauf ' convertible debenpreferred and all their debenture +nres are nof suitable for trustees
issues. The bond , market turned
banks Thev are suitable
sour, ,again slapping the deben-y
; /
greater than
of General Motors or U. S.

Co.

Phila.-Balt. Stock Exchange

rate. This will un-

higher

fbat

°^

?or

/; / ' '
"
i .< panies that buy some common
Unfortunately the two year big stocks; for individuals who are
broken since 1919 and for the past volume apparently went to the . n 0 w preponderantly
in cash,
few years have been on an annual -heads of the officers. ^They borbonds and preferreds; and for in$1.00 basis, plus a December extra rowed, spent and built trailers,; dividuM investors .with 50% : or
of 15 cents, which represents an -resulting in an almost unmanagemore/in common stocks who
ultraconservative
dividend
paid able inventory.
./*
would 1 be wilhng to liquidate
by Lykes to Mississippi Shipping.
In 1956 profits dropped. In the~~stocks to raise funds-for-the pur-With Lykes earnings probably in middle of 1957 dividends on the chase.V; 4
/
4
Dividend

sippi

ZERO COURT STREET,

ships. Also, it, provides for, cent"iy
replacement
of Mississippi b n v e «:n1d at
Shipping's entire fleet (approxi- around $55 in
mately
$160 million)
over • the t|ie Oveivthe-

Opportunities Unlimited.
for

York,'" Inc.//

New

7u-,;o1
•

/' The Fruehauf convertible 4s of
1976 are convertible into common

.' /

the

next 12 years on an

Write

/ '"

write

/;/ Yamaichi // /
f Securities Company

Lifetime Investment

Program"-

eign

LD 33 f

Tele. LY 62

effect

This

Scott, Horner & Co.

■"v

com-.-.

pany

Gas Company
-

1957 fthe

September,

V'*';• Call

mil-

;//

lion/://'; /'// :/ 4 4 4

Fruehauf Trailer Co.

cumbered.

Alabama-Tennessee Natural
;

Author of "A

945,000. There is no funded debt
and
vessels
are
owned
unen¬

$16

:infipiTiiatibB:^:^

"Fishy-back"

loans^ver

Co., Jnve6,„,e„t
Counselors, Detroit, Midi.

$5.00 par shares

total outstanding

Trading Markets

/For^uireht

/transporting /goods/
highway program, as '

Thouu,.

KS/|;|

STO C

outstanding management that
The company: is solvent,/.now
makes all these things fact. 19577 operating at7W small profit. ;It is
range, 281/2 high-17 low. Present rapidiy cleanihg up /its glutted! n-/
Over-the-Counter Market p r i c e. ventory problem. In other /voids
about $17. The shares, in- my the future of the industry and of
opinion, are entirely suitable for Ffuehauf looks bright indeed. The
individuals, trustees, banks, in-? difficulties of the last two years
surance companies or any other have somewhat /chastened/ and
investors who are desirous of >a sharpened the officers and manaconservative, yet productive so-,; gers of: Fruehauf and for a while
curityioffering'grea^ safety^
/1 they will conserve and consoli•
v
•
*
:
; ^ v
date. Secretary R. W. Jacobs adTHOMAS F. WILLMORE
vises me? that inventories;; have

be served. Large, swift, com-

may

New York

Madeh-a,

Cape Verde and other
islands including the West Indies
the Canary,

IA PAN E S E.

stock, exceptional earnings /and?,it,-progresses over the; next 15
dividend record, excellent outlook years/ will considerably/help the for further stock dividends and business of transporting goods by.
for cash dividend increase, plus

cost of Africa

Dakar south. In addition,

Since 1917

'.4/<,^4

2i/z times as Targe /as

operating equipment, high book: -method ), of
value, over 6% current yield7oii; The federal

Steiner

the Gulf of Mexico

west

the

///•

assured

m e n

m&mm

Allen

to the east coast
and

an(j- |S

Mississippi - Shipping/; trailer business, especially Frue*-*
Company offers these qualities: hauf,'has invaded the railroad and
well protected return on invest4; s h^^p i n g
fields :throughr'the

i g h t

r e

stocky

brief,

passen-

vessels

branch offices

the

the 2,400 plus

holders.

freight

Mobile,Ala.

/.:

Direct wires to our

Company,

with

discussions

interests

fleet

modern

Steamship

Bros.

The

ment, then he

Associate Member

American

120 Broadway,

York 8, N. Y.
NY 1-1557
,/

New Orleans, La. - Birmingham, Ala.

Inc. happened to the whole economy
third and,-will happen again/Deflation
group
were
of an exploratory follows inflation like, night l'olnature.
./ *\4/lows day. They go together; they
Management felt that neither are head and tail of the same coin/
of the
offers was equal to the and you can't have any coin \yith-:l
value
of
Mississippi Shipping's , out them. /////>•;
stock and therefore not in/the best 'Fruehauf makes a good trailer •

return,
growth
(5)

HAnover 2-0700

vpar

possibilities
and

Stock Exchange Stock Exchange.

19 Rector St., New
V

Shipping talking common were omitted and all the'
that
merger or sale with three groups/securities went into their present
LnnTfm'tvwfth (1) S risk A cash option to sell at $33.00 per doldrums.'
'
unbroken dividend share, with certain conditions, was v This sort of thing has happened
record
(3)
aiviaenq refuged> ag exchange with /Lykes company/ before this- era. It has
wag merger by share-:, to many; a top-manufacturing
for-share
a

Members American

^urid Mississippi

interested in
ofthrs in vest me nt

is not

Tf thP reader

Established

Member» New York

■

Shipping from the current 61A%.J,
The Spring and Summer of 1957

Mississippi Shipping Company
("The Delta Line")

than

Markets in more
Over-the-Counter Issues.

Steiner, Rouse & Co.

crease

able executions.

Primary

,,,

.wr

' //.-'••
'//-..•/•
experience and large
trading department assures you
of maximum service and depend¬

kets, faster.

400

Thursday, January 2, 1958

73 <7

lo^MiflS? Brokers, Dealers only

Try

and Financial Chronicle ;

The Commercial

lures*

SAVMGft

N.Q.B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX
18-Year Performance
35 Industrial
POLDER ON

Stocks

REQUEST

National Quotation Bureau'
Incorporated

46 Front Street

Adw Yeft A IL Y.

Volume

187

Number

5704

The Commercial and Financial Chronicle

(3)

Trends in Interest Rates

1 N D E X
Bf S.

By C. RICHARD YOUNGDAHL*
k

Articles and News

Aubrey G. Lanston & Co., Inc., New York City

[iCHTfnsg

Page

wmmmm

The
t

question

which

not

interest

way

will

rates

Business and Economic
Outlook for 1958
—Emerson P. Schmidt

move,

specialist in governments declares, "but how quickly will they j
decline, how far will they go, and how long will they stay I!'
down." Iii answering these queries, Mr.
Youngdahl expects the <

lowered Nov. 14 rediscount

sequence to

bank

and

reserves

rate to be:

Federal Reserve

to cushion

moves

With the reduction in the FedReserve
discount
irate
on

eral

Nov. 14, the point of interest
today
is "how far" will the interest rates

decline? A
view

re-

other

periods ofin-

some

to do

pose

I nte

est; trend

;

lows,

•

was

all,; I

Tax Aspects of

most' pronounced.

familiar

•

1958—Roger Bobson—__10

Lagl.

3
,

NORTHWEST

Prospects for Increased Use of
Consumer Credit Abroad
'—-Sidney E. Rolfe

PRODUCTION

interest

somewhat

rates.

rates

lower

posite

tended

Selling and Attracting Mutual Funds to
Americans
—Jerome C. Hunsacker.,

Adieu 1957: Hail

long-term
'20's the op¬

the

early
true, and again during

was

above

long-term

rates.

' *

;

J.F.Reilly&Co.,Inc.

than

late '20's short-term rates

the

well

Popovic—1—

Members Salt Lake
City Stock Exch.

1958____:___.:__j_l__.._._._

Spokane Stock Exchange

Bache & Co. Expects 9% Cut in Business
Activity..

Business

But

these two periods were both charseterized
by extreme

Outlook in Coming Year

Labor Department's Analysis of
J958 Construction Outlook

that

assume

the
process
of getting back
to
normal, financially speaking, was
bound to result in higher interest
rates.
But this assumption is no
longer valid, eyen if by'"normal"
the

mean

level

rates

•

DAvis 8-8786

See

(Editorial)

Bank and Insurance

paid

Cover

Stocks

Business Man's Bookshelf

first part of 1928—call loan

gen-

hardly ever were
probably averaged

over

erally prevailing in the '20's. We
about..4%%,
there, and per- which is below present day levels,
we ?even
overshot
those Bank loan rates to prime borrow-

during this six-year period
begin with the '20's and by re- probably averaged
4%%, the
viewing briefly the last 35 years, present level.
or so, see if we can find
anything
The ' declining
trend in longthat will help us form judgments term interest rates
came
|o an end
on the current questions, how far in the '20's
only with the blow-off
and how long will interest rates of 1928-1929
and the highly reers

stric-tive

monetary policy during
those years.
Thereafter, over the
next two or three
years, there was
an'.indecisive monetary policysometimes designated to stimulate

Patterns Over the 'Twenties
Over most of the '20's there

declining

interest
fleeted

trend

rates.

This

was

long-term
decline

and

recovery

re-

♦An

Our

»Life

insurance

address

by Mr. Youngdahl before
Bank of Chicago Con-

Monetary
in."

set

Correspondence, Chicago,

111.,;! Dec. 2, 1957.

ease

had

Securities,.

Utility

Railroad

Securities

Securities Now in

The Market

OYL

Reg.

Spencer Trask <SlCo.

•

;

Boston

•

* TELETYPE NY 1-5

Chlcafa

•

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Schenectady

•

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•

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COMPANY, Publishers

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matter Febru¬

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Chicago

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York, N. Y., under the Act of Mafch 8, 1879.
♦
I

Thursday, January 2, 1958
'

Pan American

Company

"~t-»

Place, New* York 7,
REctor 2-9570 to 9576

United Western Minerals

Reentered

Patent Office

Other
'

Gulf Sulphur

Park

■

Industry

Albany

Best——,.i

WILLIAM DANA SEIBERT, President

ST., NEW YORK 4, N. Y.

You—By Wallace Streete

HERBERT D. SEIBERT, Editor & Publisher

Exchange

•

Lithium Corp.

■

TELEPHONE HAnover 2-4300

Corner

COMMERCIAL and

FINANCIAL

.'r

BROAD

JJCLQ6 22.

Twice

Washington and You

The

Angeles

Dallas

Offerings

The State of Trade and

Banks

WILLIAM

and

...

The Security I Like

PREFERRED STOCKS

Members New York Stock

Registration,—.1

Security

Los

Chicago

.___

Salesman's

Published

have specialized in

Philadelphia

Report,.,.,..

Public

.1,1

J v'

definitely

however, by 1933.
C07VttTlU6CL

For many years we

Governments

Our Reporter's

Securities

•

Prospective

First National

ference of Bank

Reporter

40 Exchange PI., N. Y.|
Teletype NY 1-1825 & 1-4844
|
Direct Wires to
\

Observations—A. Wilfred May,,

companies, toothing of interest rate, movefor"ex^ple"weVe gaining "major ments, without much of any trend,
importance. v The growth in savMonetary Ease
m ,Thir(ies
the

•

|HA 2-0270

sometimes- directed

steady growth in savings at protecting some monetary raavajilable for investment, particu¬ tios set up by an outmoded law
larly through institutional chan¬ —and this was reflected in a sawnels.

Funds

News About Banks and Bankers—
.

Singer, Bean
& Mackie, inc.

Indications of Current Business
Activity—
i Mutual

From Washington Ahead of the
News—Carlisle Bargeron

and

^ear

Einzig; "Britain's Prospects in 1958"

;

have : been. back

decline.

Dealer-Broker Investment Recommendations

rates

haps

levels in certain respects. But let's

J^eto

Coming Events in the Investment Field

the

Teletype: SU 155

%mv
;ProSperoug

the Treasury to finance
early '20's. But the facts
are that during most of the -20's—
specifically from 1922 through {he
in

Regular Features

As We

think of the peaks of rates

Exchange PI., Salt Lake City

safe to

1160

•

Purchasing Agents Survey 1958 Business Outlook.,

HEnderson 4-8504

Teletype: JCY

Viewed by the

Cleveland Trust Co

Exchange PI., Jersey City

DIgby 4-4970

rose

STATES

WESTERN OIL FIELDS

MINES

NATURAL GAS

Investments in Real Estate
Mortgages-1

1958: Return to
Reality—Milan D.

was

4-6551

RIMROCK TIDELANDS

"*!

Treasury fi¬
progressively lower

monetary
over
the war
restraint, and the latter period in
profound effect on particular was dominated by iranour financial history over the entic
speculation
on
borrowed
tire
postwar
period.* Certainly money. It is easy to associate fi1946/was not an equilibrium or nancial developments in the whole
normal situation in "financial marperiod of the '20's with the drakets, and the forces and develop- malic moves in the early or the
ments leading to* that situation latter part. We tend to
recall, for
were
most
exceptional. * During example, the call loan rates of
most of the postwar, many of us from 7 to 10% in 1928 and
1929, or
had
been thinking
in terms of even to hold in'mind a peak rate
interest rates
'-getting back to of around 20% which is said to
normal." For a long while after have been reached once
or twice,
it

STREET, NEW YORK

___

maintenance

war

WALL

Telephone: WHitehall

term

least, in the
C. Ricnard Youngdahl
early 1940's
and
perhaps
specifically in point of time in the
spring of 1946. The achievement
of these interest lows,' if achievement is the right term for it, and

the

freely

tt-James J. O'Leary,.,,—

During the less tumultuous years
of
the '20's, that is
during-the
middle years of that
decade, short-

times

period, had

Depreciation—Dqn Throop Smith__i___—___

Life Insurance

Secretary Mellon's record of

rates.

their

Bonds

Inside the "Interim Period"
and Building
Industry
—Walter E.
Hoadley, Jr.,,

cash flows

HAILE

Business and Financial
Forecast for

sure,' are

•

Opportunity in Government
■7—LeRoy F. Winterhaltey

the

bring obsoletes!

•

if you

successive long-term

ally; reached
their

vinfthe yields

gener¬

modern

nancings^ at

—where

Labor Leader to Propose

A Golden

ment f u nd s primarily because
during this prosperous period the
Federal Government was steadily

with

paper.

rates

Treasury
securities that the declining inter¬

cluest and that*"•
i£ what I pro- *'
this

Unorthodox Policy for
% — Richard J. Gray

ings, moreover, seemed to outpace
somewhat the demand for invest-

<-m a y

provide

drops.

Youngdahl—^

Libby-Owens-Ford Glass Co.—Ira U.
Cobleigh
A Most

and substantially reducing its debt
through budget surpluses. Indeed,

terest rate de-

Clines

rate

____Cover

Trends in Interest
Rates—C. Richard

further business slide ?>/-

any

bringing about still larger interest

AT 99 WALL

Scene

—Marriner S. Eccles—

(1) larger

ranging from 2%% for bills to five-year Treasury yield from
3 to 3Vs%» and
(4) attractiveness of corporates and municipals bringing about greater adjustment than in Treasurys. Sees

AND COMPANY

OPEN HOUSE

Cover

The Current
Economic and Political

supply-availability of bank credit;

(2)
rebuilding of governments in banks' portfolio in absence of
demand for loans; (3) lowering of
Treasury rates in January

Monthly.

WHitehall

the rate

account

the

madte

4041

•

Wires to

;
' '

fluctuations in

exchange, remittances for for¬
eign subscriptions and ad"ertisements must
be

3-3960

Teletype NY 1-4040 &

(Foreign Postage extra.)
Direct

Note—On

,! '

BROADWAY, NEW YORK I

in New York funds.

PHILADELPHIA

SALT LAKE GITY

The Commercial and
4

Financial Chronicle

Thursday, January 2, 1958

(4)

Libby-Owens-Ford Glass Co.
By DR.

IRA U.

COBLEICH

corporations we might cite. For
3958, - higher
earnings
depend
mainly on General Motors sales
and the number of building starts.
General Motors, and particularly

Chevrolet,

Enterprise Economist

starting off

are

Electric Output

enterprise of vision

and the world's leading
flat

The season of the year may

Retail

State of Trade

better

competitors; and^ih building,
„some 1958 estimates of "hew starts
have
run
as
high as
1,100,000

Our

from the 29th

Chapter of

77;%
of older buildings
involves upgrading from win¬

against
for

this

now

the

sky is

dow

glass to plate glass or
v :
■
-■

mopane.

Proverbs:

Ther¬
,:7'7.

—

mented
window

and

by Future

car

and

models are certain to tiles

plastic

stalment

researching and

producing fiber glass,

which we'll

and

many

yarn

new

plant at Laurens,
for mid-1958 oper¬

South Carolina,

ation; and its sales and earnings
have been sharply higher for the
this huge volume
last half of this year. Total 3957
and wide assortment of glass LOF
sales
should reach $24 million.
has two big factories at Toledo,
Per share net for first nine months
Ohio, and Ottawa, Illinois. Total
was
35c, more than double 1956
manufacturing facilities are given
results for the same period. Sole
a book value of only $65
million
capitalization consists of 2,706,552
on the last balance sheet; yet they
shares of common. This stock was
represent a replacement cost esti¬
widely heralded as
a
"growth
at

describe later on.
To

glass for the entire line of Gen¬
eral Motors cars. The contract is

to year basis
negotiated prices.

on a year

turn

out

It has operated in each year since mated recently
over $400 mil¬
1931.
Under
this
arrangement, lion. While many companies are
General Motors uses LOF safety

stock"

ago

year

and the price

pulling in their horns, when it
this
throughout, comes to plant outlay, LOF has
(Most other upped its capital expansion pro¬ future prospects, might quite legitimately attract members of the
makers use safety glass on wind¬
gram from $12 million this year,
speculative fraternity. The growth
shields only.)
to $20 billion for 1958 to provide
the
This means that the fortunes of for plant additions, some of the potential is still there and
competence of LOF management
LOF are considerably dependent newest
types
of glass making
is not to be sneezed at!
'
upon those of General Motors, as equipment, and more warehouse
Reverting to the main company,
this business is believed to ac¬ space.
Incidentally, LOF is so
count- for something over half of magnificently solvent that it can LOF offers investors a single se¬
all of its models.

easily finance all this expansion curity which, because nothing lies
steadily entirely out of retained earnings, ahead of it, takes on many of the
improving its sales as hundreds depreciation, and its special Plant attributes of a bond or preferred
of thousands of smashed car win¬ Improvement
and
Replacement stock. The entire capitalization is
dows are renewed each year with Fund which presently consists of found in the 5,220,116 outstanding
In the replacement

market, however, LOF is

some

of the LOF advertising

over

$20 million in cash and se¬ shares of

common

and currently

curities.

slower- rate

in the. January-October

;• ••

October, 1956.;
f,
; ; v
During the year, all types of instalment
further after adjustments for seasonal factors.

credit have risen
Auto credit and
personal loans have accounted for most of the year's growth in
outstanding credit. Expansion of credit to finance consumer goods,
other than autos and for
been much less this year

repair and modernization of houses has;
than it was In 1956, the board observed.;

glass exclusively and

(You have no doubt

the record
during the
greater part of this year contributed-,tb the, buyers* willingness
and ability to take on more time' £aStents, "recent developments
may modify consumers' attitudes and-"outlooks;''it pointed out. <
The agency noted personal income" has* dropped' for two months >,
since the August peak, employment and hours of work have de-;
clined and unemployment has risen njore than seasonally.'.
•
It also noted, the slackening in the rise of consumer instal¬
ment debt has been a factor in the easing off in pressure on lim->
itcd supplies of funds in the money market.
■■■•* % >.:%V.;
>
Outstanding credit in the January-October period of this year
increased $2,000,000,000 to $33,500,000,000, the Federal Reserve
Board reported. New borrowings by consumers, which have risensince mid-1956, this autumn were at a seasonally-adjusted rate
of nearly $3,600,000,000 a month. Repayments on contracts have
grown steadily and recently averaged $3,400,000,000 a month.
The latest monthly report issued by the board, for October,;
showed an increase of $85,000,000 in that month, compared with
a
gain of $114,000,000 in September and one of $104,000,000 in

above 20. Today, at 10,
same
stock, with undimmed

ran

credit grew

period of this year than last, andlby lesfe than half
;; amount of 1955. While expansion of cphsumer-income

applications in the elec- •
tronic and aircraft industries. '
'

sociated company

first. Here, in a unique contractual
relationship;
LOF supplies
the

seen

ea^ed and the rate may continue to decline as a

of the current downward trend in business: further reported in its monthly bulletin that in¬

The board

glass to simulate the old fashioned
L. O. F. Glass Fibers Co. now
touring car. All this must be re¬
has 21 sales outlets; it is planning
two searched. And there's also an as¬

—

safety glass.

learned this week from a survey by the Federal Reserve
10 months of this year the pace of instal¬

consequence

safety

and

glass.

all LOF sales.

was

Board that in the first
ment debt has

reinforcement.

used in insulation

Fibers are

more curved glassin
in fact the whole top may be of

glass, require far

great sections of our economy the
products of LOF are in great de¬
mand
the automobile and the
construction industries. We'll
talk about the motor car business

offering

temperature, elec¬ are presently running over $225
million annually.
The yarns are
(This gadget might ma¬
used for electrical insulation, tex¬
terialized on your 1959 "Chewy.")

thermopanes,

and is based on

LOF,

heated at even

glass,

plate

renewable

vi¬ trically.

imple¬

sion

Cobleigh

Business Failures

„

prospers

Industry

mid-year.

LOF is not in a business that blight prospects for future earn¬
"Where there
is
no
vision, stands still technologically. New ings, is L. O. F. Glass Fibers Co.,
of which Libbey-Owens-Ford owns
the
p e o p 1 e uses and applications of glass are
50%% of the common stock. This
perish." Para- constantly being researched.
enterprise is * the second largest
phrasing, we There's Vitrolux, an ornamented
in
the fiber glass business and,
may also con¬ colored structural glass; and many
although only organized in 1955, it
clude that variations of laminated glass in¬
has now gotten impressively un¬
where there is cluding a windshield for aircraft
Vision a great which doesn't need a wiper as it's derway. Fiber glass industry sales

glass company

Ira

Auto Production

and

possible industry-wide

Index

Price

year.

strike

motor

Trade

Commodity Price-Index
Food

little less than a million
The only cloud in

modernization

sug¬

Scripture.
is taken

quotation from
topical selection

gest

producer of

glass.

Carloadinjs

than

Prodxiction

Steel

listed on NYSE

selling to yield 5.2%

/ Reporting on the prospects of auto

sales during 1958, Harlow,

General Motors Corp. declared that new
car sales are now
at an annual rate of 5,500,000, exclusive of;
imports, and "it appears likely that 3958 domestic retail sales . .
will be somewhat lower than the 1957 total of approximately J

H. Curtice,

President

5,800,000 units."

>/ '"7

■

...r

-/v.'

decline in confidence on
both business and consumers is to blame for the lag-*
ging business pace.
:
-. ••
^
:• •
;
"For various reasons," he stated, "confidence at present seems
to be somewhat shaken and an attitude of caution appears to
prevail. This can have a substantial effect on the level of eco- *
nomic activity."
%
:
• r
Mr.

Curtice

indicated

general

the part of

Intense

competition

will

mark (the auto

industry again in

3958, the head of General Motors predicted. Even if the
sales rate is indicative of the final results for the year,

current
he con¬

at 68%, only 3% points above the
tinued, "it would still represent a good volume of business for
Any consideration of a company
year's low. The dividend rate is
in cars.
the industry," and added,, "the .picture would
improve should
today, with a view to. an invest¬
$3.60, amply supported by current
This is part of a> $3% ^million spe¬
an. upturn in business in the second half,materialize."
i;
ment" appraisal
of its common eanings, which, incidentally, are j
cial advertising program running
stock would require a look at the
understated some 90c a share due <
until July 1, 1958.)
The nation's steel mills are caught between two fires this
trend in sales and earnings. ;Total
to ultra-conservative depreciation
The second major segment of LOF
week, higher wages and a falling market.
sales, which first passed the
charges. This $3.60 dividend looks
company business is in new con¬
'"The Iron Age," national metalworking weekly, says,steel
$200 million mark in 1953, were pretty solid. There are no fixed
struction. Here LOF provides win¬
labor costs are up about $46,000,000 a year, effective this week.
$259 million in 1956. They should
dow
glass
for
homes,
schools, aggregate about $242 million this charges ahead to take priority in
The pay boost of five cents an hour represents a cost-of-living
event of a more severe recession,
plants and factories; and plate year.
adjustment under contracts with the United Steelworkers. An
This is down a bit, due and the management policy has
glass for the quality market—the mainly to fewer housing starts.
estimated 470,000 production workers will receive the pay increase.
been not to advance the dividend
more expensive
residences, store Profitability is expected to be well
Despite the wage rise, steel prices probably will not move up. v
rate unless the higher cash dis- ,
and super market fronts,
office maintained, however, With per
It will increase the pressure for higher prices next July when tribution to shareholders could be
buildings and institutional con¬ share net of about $5.30 against
steel labor gets an automatic seven cents an hour pay boost under j
maintained. Dividends have been
struction.
Coming along rapidly,
$5.59 for 1956. As a matter of fact,
paid without
interruption since, its three-year contract with the steel companies.
too, is Thermopane, a sealed glass LOF has a remarkably high profit
1933 including a 2-for-l split in
This trade weekly observes that if the cost-of-living continues
construction increasingly
sought margin for a company of its size,
1950.'
4
'• ^77
;r,;.' %
■' to rise the steel workers will get another cost-of-living pay boost
for its beauty, its heat saving and 31.6% in
1956; and it seems better
next July. These increases to date have cost the steel companies
On the immediate horizon, there
sound deadening insulation, and insulated against the now preva¬
does not seem to be any dramatic
7
Continued on page 26
on

television plugging

the advan¬

tages of total safety glass

•

lower condensation factor.

Much

lent

"profit squeeze" than many

or earnings.
growth of LOF
over the years, the forward look¬
ing management, the splendid fi¬
nancial position, the plant expan¬

either

rise

But. the

sion

are

pleased to announce that

and

research programs,

the

rising trend in the use of glass—,
all these suggest the usefulness of
LOF common for those attracted
by blue chip equities, and stressing *
dependable income, high market¬
ability and reasonable expectation
for increase in market value over

Edward F. Green
and

Douglas

sales

historic

Members New York Stock Exchange
Members American Stock Exchange
/A

7fa/l Eft-rcct, ^Aeu*

II. Hansel

announce

S. L.Weedon Retires
have heen admitted to
as

our

From

firm

Shields & Company

L. Weedon, a Director
Vice-President of the Crosby

Corporation, Boston, general dis¬
tributor of
Fidelity Fund, Inc.,
and Puritan Fund, Inc., has re¬
tired
from
the corporation for
which he has headed the New
York
office
for the
past four
Mr. Weedon has been re¬
tained
by Fidelity Management

lias keen admitted to tke firm
a

Corporation, Boston,

consultant.

General Partner

Telephone

Teletype

Cable Address

WOrth 4-3400

NY 1-2900

DelafieM

years.

and Research

WALTER B. DELAF1ELD

Crosby Corp.;

Sidney

General Partners.

and

time.

Jauusrv 1, 1938

Volume

187

Number 5704

The Commercial and Financial
Chronicle

low;

the

and

predicted increases
investment were

being obstructed by the difficulty

in business fixed

substantially

Observations

estimates

too

capital

By A. WILFRED MAY

the

most

The

isSUi^g+/ror?ivtl5

^ocfatkSs
and

the

So-

; ciety),.is
d d i t i

evidence

the

sons

Tor;; the

; •" Our first

Contrasted

*~jg

billion

$20.4

ex-

troduced
/
.

Arthur
of

the

which

Cowles

ndation

o u

A. Wilfred May

Economics

Yale

Uni¬

sion

versity, speaking on "A Post Mor-

of'

tem

Some

Recent

Short

Forecasts." He presented

sion

Economic

1956,"
tion.

Review

Forecasts

for

(It

will

medium

Some

1955

of 'the

for

Cowles

Research "in

1933.)
I"

in the find-

preliminary comment by
appraising general fore-

thoPwnrU
.f™"

of postwar
failed ;utterly

activity

foresee

the
tile

luicauu

inflationary

iUXlcillUIlcti Y

The-results
derived

reported

now

from

forecasts

IJIUppros-

for

industrial

and

publishing

firms in New York City; and
the product ot
and

Gross

actually
>

were

error

the

-'arising

Mathematizing Future
-

This

•

• a_

nullifying the efforts

another

that

area,

In'

metrists.

the

from

method for the successful determination - of
stock
pricing was

claimed, they typically pointed

mathematical
the

behave.

Sp.

were

National

efforts.

The

centered

measurements

people actually do
In this case "people" are
their

and

location

„

Product.

the

inaccuracy in
level,

predicted

consumption

was

change

substantially too

well

contribution

PLEASED

ANNOUNCE

THAT

Mitchell &

Security Traders Asso¬

Annual

Convention

proposes

way

ivAs

for

Company

America

annual, convention

at the Americana Hotel.

-BOSTON, Mass. — Jerome J.
Forbes, Arthur M.t -Pivirotto, J Jr

Harold

and

Soloff

fice Square.

;

■

lic's

and

}

■

ANNO UNCE

price

amount

expect
held

dividend

TUE

♦.

j.-,.

ADMISSION

-•

ALEXANDER C. TOMLLYSON
'

:■

•

.
,

GENERAL

PARTNER

THE

FIRM

that

receive—all

dividend

EFFE GTIVE

J A N UA RY

1, 1958

in the

useful

factors

.p
I

2 Wall

December SI, 1957

Street, New York

from

the capitalization of the

the

prevailing

interest

rate.

Coefficients
•.

AND

■

'•/.'•

■;

and

Pi's

The eeonometrist thus quantita¬

tively determines
.

stock price by

are

pleased

to announce

elaborate system of coefficients

(numbering 81), pi's, and a priori
transforming the Dow-Jones*

the admission of

ratios
!

Robert A. Powers

average

esoteric

Thus, the
omist, like
HAVE

THIS

DAY

BECOME .PA RTNERS

OUR

FIRM

Smith, Barney & Co.
Members New York Stock Exchange
and other

leading exchanges

hieroglyphics.

mathematical
many

William r. Jones

econ¬

other

ob¬

and

servers
of the investment scene,
fails to take into account the way
in which people actually do be¬

have in the market place. Specifi¬
cally, Professor Chow's elaborate
methodology is premised on the

assumption

that

doesn't

surely,

even

Joseph e. Swan, Jr.
as

General Partners in

our

firm.

the

speculating
and
investing public's decisions
are motivated by considerations of
yield; whereas certainly the action
of
the vast
majority of market
participants is influenced predom¬
inantly by a variety of factors
other than yield. In fact, in
many
instances

-tr

of the pub¬
toward
stock

buying and selling of stocks. It is
that
stock
prices
are
chiefly determined by the divi¬
dend
yield, current and as af¬
fected by the previous yield.
It

,yield

-IRCf

measure

attitude

the

& CO. *

?'-V

other factors, basing the predicted

Andrew J. Melton. Jr.

are

the

know

lay
the

buyer
issue's

yield—any ciiriosity in this regard

Hayden, Stone

ht^uhliohtxi 1.S92

Members
January 1, 1958

with

Hayden, Stone & Co., 10 Post Of¬

MORGAN STANLE

peo¬

practical (hoped for) guide '
it
suggests -a

mathematical

To Join Hayden, Stone

Company, 120 Broad-

economic

measure

at
-

30-Dec.
5,
1958
(Miami
Beach, Fla.)
Investment Bankers Association

practi¬

investment,

isolates

Hlgh Knowlton, Jr.

eco¬

assumed

William E. Fay, Jr.

(Boca Raton, Fla.)

Nov.

way, New York

theory,, it
assumes
that
stock
prices are determined by dividend
receipts from the stocks, and it

which is

ARE

(Colorado

Admits Three Partners

"a contribution

theory

people
\

ciation

This measure, as distin¬
guished from the existing com¬
putation,
both
the
incorporates
element of growth in dividends
January 1, 1958

National

City, members of
the Philadelphia-Baltimore Stock
posing
the prediction
of
stock
Exchange, have admitted Jack A.
prices via a mathematical method
jossem, Everett F. -Wendler and
for analyzing the quantitative fac-iHerbert ; B.
Abelow
to
general
tors while isolating the quantitapartnership,
tive ones — characterized by the
as

the Boca Raton Club.

Mitchell &

divergence of' mathematical
theory from reality was exempliiied hi a paper by Professor
Gregory. C> Chow, of M.I.T, pro.

the Broadmoor,
Nov. 2-5, 1959

cal guide to buy or sell stocks."

for American goods was not foreseen;

ties of Soviet scientists in this
Anno Sputniki One in this area of
financial prediction,

yield.

scheduled

National Security Traders Asso¬
ciation Annual-Convention at

bave supplied timely information
regarding the attitude and activi-

;

29-Oct.

3, 1958
Springs, Colo.)

Unfortunately, the two

thc market place.

Sept.

way

investors

Quebec.

egg-

tjt

economists

of Canada annual convention mi
Manoir Richelieu, Murray Bay*

cause of bad weather." They could'

the variance of the calculations of
the translators of economic forces
from

statistical

Mid-

Bellevuf-C *

June 9-12, 1958 (Canada)
Investment -Dealers' Asspciatibn

the program here withdrew "be-

wherein

mcetmg

nomic

the price

Russian

econo-

nm*

$6 bill oi, a d the m an
pfre contributing \ +l ^
c 10fn?h ?• ' to the

arose

"P.S."—

into

the

at the Shamrotk Hotel,

of fore¬

demonstrated here hi

was

author

factor

projection

W
cir

•

annual'
at

Association annual meeting

ers

heads'.

element

Philadelphia

23:25, 1958 (Houston, Te*.)
Texas-'Group Investment Bank¬

not alieady

exercises

behavior

Chicago

April

\hG author artlst-

(Philadelphia, Pa.)

Winter
Dinner
/ Stratford Hotel.

Prices

human

/..

(Chicago, III.)

Traders Club

28, 1958

excessive the pub'■ • *'" Be
obfuscatiou
regarding
the
;
practical significance of dividend
Stocks yield, without accentuation by the
"

mid¬

Southern

Investment Traders. Association

the

;

Feb.

effects

annual

annual Midwinter Dinner; at the
Sheraton Hotel.

tnh

from

the

gauge

Bond

Vper-subfec^ SS

lnto

23rd

Hotel.

'n
here toovawa

serious/independ- The large rise in foreign demand ple's expectations thereof.

substantial

predictions

major

■

^
oc-

f/'fd L Lmv

years 1955 and 1956 by professional economists in six finan,

•

rise

f^
t,rety was

thc

Piedict that GNP would tu
,

were

made

qSte ea% tob£t ^"ish

dqvviv some
The.total

Field

dinner at

Jan. 27, 1958

dlvldend' -either

*1°?-

study

This

Since GNP had

year.

pects of the late nineteen forties,

ent

Results

fSu-f

*1*

forecasters

most

economic

an-

this

.....

^bat for 1955.

eating performance/and the value
of the prediction tools that have
developed, he pointed out

cial,

1956

Thc

been

to
til

underestimation

that the large capital
amassed in -the booming
stock ' market, would. stimulate
consumer spending. ,

Mr. Okun

that

of-the

years—ascribed

changing crowd behavior.
:/
# /
\
"t D

con-

tempts

casters

The area
investment was the major

.L,)a

Commission

Economics

personal

National

bearish

shortcomings

in/

Wes was not foreseen Nobody

that

major evidence of the. shortcomings of the- stock market foreings

both

Investment

sociation

winter

castin"' effort/tt&y

-For

and

& thc. m?*?»tude of expansion.
The actual rise un non-residential
®?nstrachol» ?"d Producers' dura¬

and

recalled

casters was embodied

occurred

discus.

materialize.

construction

Gross

While the results of

but

s"?pti'm expenditure.

Term

embodying
unpublished
compiled by the Founda-

material
I

,"A

paper,

^>fo

for

habitual

l?fn SilS
in-abstract art,

ventory. investment, the predic¬
tions were uniformly too low. The
largest underestimates of expan-.

for Research
in

filed

residential

in-

preconceptions of tlie
forecasters/ and their reluctance :
to climb far out on a limb.
• .v.-jAs

unanimously anticipated a small
rise
in/ net foreign investment,

Okun

the rise of $30.5.
actually " occurred,
was

price

EVENTS

dividend ratio- Surely no mathematical formula, no matter how
hi£hly refined the hieroglyphics,
cau
account for the behavior
Rotors that capitalize a Blue Chip
\ssue at 40cdvidend 011
.1957' a* 2\ timf.s. thrC(:
moat.h? lateAr' and
a d;liercnt
V
w11 AugH > 1J?53. ObviousJbe changes in pricing are not

years

types

The

COMING

sharp fluctuations in its capitalization
of Jan. 17, 1958 (Baltimore,
Md.)
the dividend; that is, in the
priceBaltimore Security Traders As¬

forecasters

major

errors.

expansion

Product

billion, i the low $10.5, the
being $14.5/ The forecasters

mean

in¬

was

the

with

that

the highest predicted rise

hi bit

ex-

the; forecasters failing to
anticipate any increase in prices.*:

rea-..

the market's

totally unforeseen or else markedly underpredicted.
And there
was a cohsistent
underestimate of

with

shortcomings
of forecasting.

the

two

the

Furthermore, the theorist's emphasis of yield is contradicted by

of both years were either

creases

about $4 billion were at¬
tributable to higher prices in
1955;

of,"

with

;

occurred exceeded the

1956,

consistent

eco-

I GNP,

the
nal

envis-

pectations of aK.
Of
the $30
billion
rise
which
occurred
in

Eco¬

nometric,
a

1Can Marke>g tua11^

forecasting of both

and

manifested

fcut

1954;

goods.

cause

In the

activity
compared
with
the upswing which ac-

the
'

capital

vis-a-vis

disbursements,

their

1955

1955 Score

general expansion of

•

re-

eign investment.

^or *955 the forecasters

cFe v
iA1|ied aged a
Science Societies (including nomic
American Economic American

-°li

calculation

confusing and conflicting ways of
including "extra" and "special"

of forecasters'error
overlooking of the expansionary influence of net for-

SOME FORECASTING ITEMS FROM
THE EXPERTS

PHILADELPHIA, Pa.—The

prices

Another
was

Under-

outlays

its

suited largely from the
rapid rise
in

^==

small.

(5)

Principal Exchanges

Co.

Commercial and Financial Chronicle

The
<5

(6)

•

■

" '

■

The

Unorthodox Policy for
A labor Leader to Propose

A Most

RICHARD J. GRAY*

Trades Dept., AFL-CIO

and Construction

President, Building

for a labor leader
President asks rank and file
to accept a one year wage freeze. In addition to this, Mr. Gray
■;
proposes a joint labor-industry effort to secure easier money,
lower taxes, more public construction, and improved produc¬
tivity. Poses as the paramount question whether it is better to
obtain wage stabilization with full employment through in.
creased production, or to strive for wage increases which adds
to inflation, brings about tight money, and less work.
.'/
unorthodoxy of the proposal

Aware of the
to utter,

AFL-CIO Building Trades

curity
back

scientific military $75.00
what
achievements, but is inflation. I
in

superiority

problem.
Let

that

held

now

the
major nations
is

great

that

coun¬

will

try

risk

«•

starting
This

war.

not to say

shouldn't

w e

keep

ef¬

Richard Gray

efforts

the

missile field and other aspects

Increased de¬
spending more

defense.

military

fense efforts mean

— borrowing
more money.
short, this means more ipfla'
' /• ' ■

money

lion.

will

little

good

achieve military superiority if

the

ever-increasing inflation

cost and

eventually

result

unemployment and

widespread
depression.

consider inflation and its

effects upon us,
and

then

Inflation

first as Americans
building tradesmen.

means

Construction Pro¬

Dollar

for
new
postoffices and
buildings has been sty¬
due to a lack of available

Federal
mied

Inflation played a major
in the Congressional defeat

money.

role

this year of a

Construction
eral

back

snail's

hospitals

much

Re¬

—

and

pace.
more

has

is proceeding

We need more
airports — more

utilities.\ Construction of
plants 'and plant

public
new

Fed¬

Construction Program
cut

been
a

The

Program.

Clearance-Urban

Slum

newal

Federal-Aid School

industrial

modernizations

Inflation
Let

mortgage money. The Federal
Lease- Purchase

gram

renewed

need

money.

Billion

forts^—indeed,1
we

they would

Government's

our

defense

retired

ing has fallen off in the past two
years about 30% due to a shortage

that

have

been

post¬

poned in too many instances due
to the shortage of available funds.

fight

the past

country and has been for
several

years.

Perhaps
this

means

GNP

Product"

will

they call it, for 1957

-x

billion. This means
in the United
will spend during
1957 for all types of goods and
services a total of $434 billion;

.....

of the nation's

the measuring rod

economic health.

;>f;/:4
ItJii.

.•

••

nation's

of* the

15%

;

eco¬

*From

49th
and

talk

Construction

AFL-CIO, Atlantic

Trades

Department,

City.

and

money

policy by this Administra¬

tion

any

do not

want

tight-

other Administration.

responsibilities

ders.

until

now,

Shall

and obtain wage increases

mean

and

to announce

the election of

wedo,

tight, money,

—

However, j it
from the views < of

x; think i.
r e q u e s

am .right-and.
t international,

labor

leaders

from

One>vfrom
structors

the
'

Jones, Swan Partners ;
In

;;

Hayden, Stone Co.

Hayden, Stone & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange,

announce that William R. Jones
from the .and Joseph E. Swan, Jr. have been

(one from

admitted to geenral partnership in
their firm.

•

Knapp Unlisted Mgr.

Mechanical Con-

tractors Association

Specialty Con(painting,

tractors Association

Of G. C. Haas Co.

G. C. Haas &

brick, lathering and plastering, roofing, etcx)
Associa-

Co., 65 Broadway,
]\jew York City, members of. the
New York Stock Exchange, have
ann0unced that Mills M. Fries and

tion of Home Builders
from the Professional

Edgar. T. Mead Jr. have been admitted to general partnership in

One from the National
v

Ar-

One

-—

X-

...

;*.'Chitects and ^Engineers Asso£irrn, and that. Reginald J.
; Z--. Ration^
.//.
, U;..Knapp has been appointed ManaT : °ne from the National* Assncia- ger 0f the unlisting trading de''

inflation, less construction
unemployment for our

people? Or, has the time come for
us to reassess our basic
policy? I

don of Realtors

partment.

/ One from the National Savingsr
i
'
and Loan Association
" '1,
.One from the American Bankers ■
,

....

(spcciaito.-TriE financial chronicle)

Association
/ •./ ;D EN.VE R, Colo. — Jack D.
have reached such a point.
ciemenson. and Earl L. Goodale
To me, it seems to be a question-1 y-P?® from the^^Mortgagfe Bankers
Association
.have been added to the staff of
of stabilizing our wage gains and
Such a committee of 13 persons Columbine Securities Corporation,
obtaining full employment
through increased production.
:s would certainly be representative
1575 Sherman.
"
• •It is my intention to lay before
our Executive Council at its regu- '
-

say we

QUINN

Vice President and Director

quarterly meeting to be held
month the following pro¬

lar

and the association

posal.

iirc

pleased to announce that

Wage Moratorium
*

MR. RICHARD H. SCOTT
our

Trading Department

join

laration

policy

appointment of

calling

HARTY, JR.

our

representative in Denver, Colorado

our

MR.

HERBERT
have been

F. WENDLER
R. ABELOW
admitted

associations

other

words,

propose

wage

any

general partners in our firm

increases during 1958.

sincerity

nation
ments

and
of

demonstrate

purpose

other important

the

construction

try. It will also, I feel

■L

construc¬

JACK,A. JOSSEM

EVERETT

increase during 1958.

This first step will

Reilly & Co., Inc.

MR.
MR.

voluntarily declare a moratorium
on

J. F.

upon

they voluntarily forego

wage
In

contractor

respective
that

MR. LLOYD J.

}

unions to notify their

tion trades

and the

ft'

public dec¬

their local building and

First, I propose that all General;
Presidents

with

i-J, :

Two With Columbine

MR. EUGENE J.

•-v

Fries, Mead Partners;

Con¬

the ^National
Association

Oner from' the
V

pro¬

the Associated

One from the
V

will know how

feel xfrhen I put these
posals before them. \

you

General Contractors of America ^

to com¬

inflation?

and

.Top Representatives

One

.in-/

pensate for, and I might add, contribute to the increased ♦* cost 'of
it

magnitude of
policy means'.

propose.

dents so that they

interest

specialty trades $nd one from
the Department)

continue to strive for

•

pleased

—*■

sufficient money

at* reasonable

the basic trades, one

;

get

others

envision J this

Three

sole objec-"
else in organ- •*
to

to stand

j s^te and;local council.delegates

•'

our

been

has

labor

;

differ

urgently

working committee, it would
about 13 top representatives from the Various seg;
» i.
•
v
.
--ments of the industry as follows:

shoul¬

our

upon

■

be composed 0f

added

places

well-being

nation's

will

are

x- •

may-

wide

the,;

affects

vitally

which

—

aeiense ieader to

building tradesmen in an in-:

dustry

living

tempting to make is that our position as labor leaders of 3V2 mil-

ized

dislike

ine

rates to fulfill the needs of

that the

by Mr. Gray before the
Regular Convention of the Building
a

•

'construction industry. *":;

$7.00 spent during 1957 ,went into
construction. The point I am at-

lion

the

aware

the sacrifices .such a
.

purchasing power to the

market

Every labor economist I 'have
creased wages to compensate fipr;
talked to places the blame on the
the increased cost of living. Our
$1,000 life Administration's so-called
"tightinsurance policy you bought in
efforts in obtaining increased
money policy." To a limited ex¬
1947
is now
worth
only about
wages have not been without suc¬
tent they are correct. The tightcess.
Indeed, w'e have done very;
$750. It means that the $1,000 you
money
policy,
I
believe,
is
well—better than most segments
put in the bank in 1947 for your
specifically aimed at slowing
child's college education is now
of organized labor.
j". ''
r/..V
down construction. Let me make
worth only about $750. It means
? Alternative
Choice!;'./. /:/
one
that the $100 a month social sething absolutely clear — I
means

confident and
"

$1.00 out of; every,

that

means

well

/American public;'..and.

nomic health. Stated another way,
it

for

(5) Develop ways and means, both Vto convey their personal;opinions
publics and private, to assure a to their respective general presi-

alteration and

vork
repair work account for $16 billion. In simple
terms, the con¬
struction
industry accounts;; for

about

easy

construction programs; to effect This is, to say the least, a most
much-needed economies by.* unorthodox : policy for; : a • ,labor
/»nn«niidflTinns
the
defense
-j'—
;"
rV.
.' .•
-x"

this $63
construction accounts

pair work. Incidentally, of

billion, new
for $47 billion and

...

not

■-'

and advocate a one year mora¬
torium on wage increases; /I am

Agencies and when feasible to
"reduce taxes so as to provide

billion will be spent for
•
construction, alterations and re¬

about $63
•

Rightly Urgent 1:

other

and

...

1 consolidations

that

The economists also tell us

airports

hospitals,

tight-

its*

abandon

policies, to enact ap¬
propriate legislation, to provide
assistance for housing, schools,

Product"/is

National

"Gross

to;

money

States together

This

j and nrice controls': ^ '

ment

the people

all

y*plus eventual government wage

v,.

;

W^ng indu^^xonwted
effort upon the Federal Govern¬

be about $434
that

steel,:structioh,= m o r e; unemployment

predict .that;

Nat ional

"Gross

Iho

attempting

higher prices,' less ' con-

wages,

I can illustrate what
,
riti
indireetlv ripnendent
by citing a couple, of./upon construction such as

Economists

figures.

voluntarily

solve ;the problem,-then of some
thincs you can be sure higher

; pendentUpon construction, such
as cement and lumber and other

*r y

industry

one

tive, like everyone

Money

than

construction

the

.namely;',private' enterprise- in the
number-one in/in^rntr1 of tkn counniimhor ono industry af the

to boast;
(.ty,En(Icavor t(,obu.in a voluntary
mHiicrftr *ie»v
•*
.
industry is
wage
increase moratorium in
in the..
fhn°
ti
industries rie-

time

time
4L/-.*

number

the

higher prices for goods and serv¬
ices. It

all

observer so as to
knowledge of

that

represent. Look about and see
what has been happening—hous¬

participate

to
as

first-hand

obtain

from

scale

large

meetings

ment for all

With a shortage of
money
comes cutbacks
in con¬
struction. This means unemploy¬
ment for the people we are paid

advisors

of the nation's econo-

and providing full employ¬
building tradesmen.

leaders

terrifying effects of inflation,
r
.The really serious part of in¬
flation is that it creates a shortage

weapons

our

strength

>
^
that we have a ' very-y

say

responsibility to our counthe progress being made.'
-M
Americans. We have, as - (2jl Develop ways and means to;
Will such a committee produce
reduce construction costs such
of 2}/z
million buildings
concrete results? This I do not
as
increased productivity
tradesmen, the responsibility to:
see
to
it that
our
membership v?through the usej of new mate- know—maybe yes, maybe no. If
this is not the answer to inflation;
continues working. Many of us
trials and new techniques; etc.

try

small part of the really

tell only a

structive
power

means

such illustrations but

de-

the

this

grave

members. I could cite many more

confident

feel

cial sources of construction funds.

of a working committee represen-

of
you
are
probably, tative of the building and conAs chairman I would suggest a
wondering why we as building struction industry. The objectives, well-known public figure outside
tradesmen
should
put
inflation of the committee would be to: rof government'and the industry,
number one on our list of prob-.- (i) Obtain maximum construction *1
also ^ would suggest that the
if
anvthincr
wp
lems and what,
if anything, we
'Activity in all phases of:thein- President of the United States
can do or should do to solve this
dustry,- thus
adding to the" designate one of his top economic
Many

will

if you

Think

the

pie and also adversely affects
nation's economic well-being.

figured to retire on,
1947, will only be worth

today.

namely, labor, general contractors,

v '■
' subcontractors, architects and enrrogr&m . ^ ... gineers, home builders and
Second, I propose the formation realtors and the three main finhn-

unemployment to our peo-

means

you

of all, segments of the industry; •

tight-* pnd and most important phase of
; , . *

policy is that its effect is ■ my. proposal.
v > v ,
back construction — this :.i><.'•

cut

the

dislike

reason

money

+Lrsf

problem facing
nation today is not Russian

The number one

the

.-Thursday, January 2, 1953

. .

the
seg¬

■mf,crs

120 BROADWAY

indus¬

confident,

lay the ground-work for the sec-

I'hilailrfphfa-BnItfmore Stork

Janunry 2, 19fi

Exchange

NEW YORK CITY

Volume

187

Number 5704

The Commercial and

Financial

Chronicle

(7)

services which began to cost more
and more, and the urge to spend

loan

portfolios. Several years ago Board.
The cry was raised that
bank, The First National Bank the policy of credit restraint was
became stronger and stronger. The of Chicago, suggested a staggered
strangling business, that deserving
individual was gradually impelled maturity schedule for the purpose
borrowers were unable to satisfy
to
of taking advantage of just such a
borrow, and consumer credit
their legitimate needs, and that
rose from $32.2 billion at the end
situation as has existed
during the the Administration was in fact
By LE ROY F. WINTERHALTER*
of 1954 to $42.8 billion in August last few years.
breeding a depression or, at least,
1957, an increase of 30 %. Busi¬
a
recession. The Board remained
Victor President,'The First National Bank of Chicago
Expansion End*
nessmen noting the increased eon-,
impervious to this criticism over
"A golden
sumer
Now we have
spending, began to adjust
apparently ar¬ a long period of time and stood
opportunity" in bonds for bankers is portrayed by
their own capital expenditures and rived at a point,
however, where firm in its resolve to combat with
Chicago banker who assumes low point in bond quotations has
outlays for plant and equipment, it is becoming increasingly evi¬ all the
forces at its command the
^ passed. Mr. Winterhalter suggests: (1) tax swaps still avail¬
which amounted to $26.8 billion dent that the previously expand¬
rising tide of inflation and its ero¬
able at a profit should be
in 1954, $28.7 billion in
done; (2) those in short position
1955, $35.1 ing economy has suddenly lost sion of the purchasing power of
billion in 1956, and an estimated some of its bounce. The fall
should lengthen out, at least
pick¬ the dollar. I, for one, feel that in
moderately to maturities from
$37 billion for 1957. This repre¬ up has not materialized to the de¬
general our monetary authorities
1960-63; (3) retain 4% notes due Aug. 1, 1961, and Aug. 15,
sents an dncrease of over $10 bil- i gree that was
expected, and while did a fine job in their efforts to
1962, and (4) smaller coupon discount obligations, when
lion, or 37%, in just three years. levels of production, trade and combat
rising inflationary pres¬
The savings in the economy were employment continue
feasible, due to their better after-tax yield in lien of higher
high, it is sures, and I think the major por¬
not
sufficient
to
finance these becoming common knowledge that tion of criticism was directed from
1
■
current income.
iwye*''.
huge r capital
expenditures,
and in certain segments of the econ¬ sources
having special interests to
'The
subject
of
Government which in recent months have cul¬ they, were therefore financed to omy new orders are not in suffi¬ serve.
<
a large extent
Bonds is so consequential and so minated in a
by heavy borrow-, cient volume to support full pro¬
rather confused pic¬
The
constant
rise
in
interest
ings; In addition, state and local duction. As a result, order back¬
comprehensive in scope that we ture* "These are
rates which progressed unchecked
periods in .which
governments wbre huge borrowers logs are disappearing.
should begin a discussion of its
Up until until recent
confidence has ' waned, in
some
months has had a
to finance public works.
September, the value of our serv¬
various as¬ instances,
in: basic philosophies
very noticeable impact on Gov¬
ices and goods was still expand¬
combination
of
demands
pects
by re¬ previously held. The Syrian crisis U The
ernment bond prices and yields.
viewing the and the implications involved in from these three types of bor¬ ing, and recent figures indicate From about the middle of 1954 on,
rowers
pushed the demand for that the Gross National Product as interest rates firmed
contrast be- the
launching
of
the 'Russian
steadily
for
the
third
credit to a level where the de¬ figures
quarter and
t w e e n
business expanded, the de¬
^eco¬ "Sputnik" are barometers ? which
reached a new high annual rate
mand exceeded the supply
nomic
and,
mand
for
credit
became
over¬
condi-;, undoubtedly are inflationary; in
of $439 billion, or about
asr was
$4.7 bil¬
tions as.' they character.; :
inevitable, the cost of
Certainly, the'; rush to
Government bond
lion greater, than the second quar¬ whelming.
c r.e d i t ^ increased
substantially.
perfect and speed ,up our guided;
prices drifted downward continu¬
j' were during
ter
which
I
mentioned
before.
banks
in¬
the 1 a s t few missile program, .can i reasonably Loans of commercial
ously, cometimes at a mild pace
creased -during the period by about Here again, however, rising prices
and at other times at a somewhat
,,.years.^; v^.*; be. interpreted as a signal for.; in-f
were
an
even
more
important
D e
,,y e j.op - creased spending for defense pur-:, 30%; and the banks were forced
startling speed.: However, in spite
to liquidate huge amounts of their factor than formerly. V!
meiftSiduring poses.' Likewise, -the Syrian situ-^:
of,.the bullish news on business
;
During the summer months, the' and
Itecent weeks ation, - though relatively " quiet at Government securities " so they
depressing •' factors affecting
in our econo- the moment, could produce a. tre¬ could use the proceeds to accom¬ generally side-wise movement of Government bond
prices, no sell¬
L: my jhaveLhad mendous: inflationary... impact if modate the borrowing needs of business had encouraged many ing panic developed such as we
to believe that
their regular customers.
the normal falL
i
cwu
n
Profound ef - some irresponsible act by any one
witnessed in 1953. During the 1955
L. .F. Winterhalter
the
fec(s on busi. of
nations
involved
would"
To combat the surging infla¬ expansion would develop at some period, the psychological impact
time during the autumn season.
r
4
ness psycholof tight money and declining busi¬
suddenly erupt into a shooting, tionary factors in the economy,
f" ogy and'confidence, and• on the war, however small it might be.; the Federal Reserve Board adopted Actually, on a seasonally adjusted ness had so shaken the confidence
ever-present arguments pro and
On the other hand, substantial various devices"designed to coun¬ basis, September fell below August of
businessmen, financial men, and
con
regarding the supply of and numbers of incoming reports are teract the expansion. This policy in many categories, such as per¬ even Government bond dealers*
; demand for credit, and yon the predominantly u n f a v o r a b 1 e to of restraint was, I believe, wisely sonal income, retail income, retail that the Government bond market
over-all
interest -rate
structure. businesses as a whole, and there selected
at
a
time when rising sales, total employment, industrial was practically at
a
stand-still
^Government bond price fluctua¬ can be no question but that ideas prices, high employment and peak production, housing starts, whole¬ with everybody apparently afraid
sale prices, and many other im¬
tions are, of course, geared
to
do
closely regarding the possibility of a busi¬ levels of business output and in¬
anything. Now we have
to corresponding
down-turn
are
changes in in- ness
becoming come threatened to submerge the portant business indicators. This again witnessed a downward trend
S terest rate levels. If bankers are much more prevalent. - These are economy in a wave of inflationary was the first interruption in the in bond prices which has con¬
going to be able to so regulate important considerations to any¬ hysteria that could largely destroy trend which had previously been tinued during 1955, 1956 and
early
either upward or sideways, and
our investment policies as to ob- one
having the responsibility of the purchasing power of our dol¬
1957, and dealers have again been
it was significant for. this very
tain the ultimate in benefits from
lar.
reluctant to take on anything sub¬
supervising the bond account .of a
Among the methods of re¬
reason.
these developments, we must ana¬ bank and
stantial in the way of position
developing« an invest¬ straint used was the raising of the
Because of the situation created because
lyze each situation carefully and ment policy that will best serve Federal Reserve Bank discount
in
numerous
instances*
not be stampeded into rash action the bank's needs. ' They are im¬ rate.six times—from 1V2% in 1954 by the
so-called: "tight money"
they have incurred losses on tho
3 every
time a new ; "Sputnik" is portant 'because as business dips to; 3J,2 %• in August 1957.
There policy, there was some critieispv deals before
the ink was dry on
launched into space.,,!. •
and
jcrebounds/ interest rates re¬ was some question regarding this with which I do not agree, air

A Golden

Opportunity

In Government Bonds

«.

«•

think

that

;

highly

have

may

flect

probable

before

be,

a golden
opportunity
benefits from our bond

reap

—

benefits

interest

effect

which

have

rates

has

immediate

bond
.

•

fer

are

such

that their effect will,

in my opinion, be

building

bond

profits

substantiate
the

moment

feeling
at
least,

during

that,

passed the low point in bond
tations.

Let

the

business

picture, it might
be well to review developments
during the last three years. You
will recall that in the latter part
of 1954 our economy entered into
a
period wherein the up-surge of
business activity became substan¬
tial, and this expansion was large¬
ly
sustained
until
just a
few

this cycle of business
activity, and
I would like to examine the
picture at this time in an effort to

.In contrast to the present phase

favorable to the

for

have
quo¬

constantly keep
in mind, however, that all this
is, months ago. While it is true that
of. course, subject to immediate the rate of increase in 1957 has
revision in the event of a
major not approximated the" substantial
war or
some
other catastrophic gains made in 1955 and 1956, and
while it is also true that activity
happening of this nature.
actudlly declined in many sectors,
Contradictory Influences
'
nevertheless, the year as a whole

•

any

has

analysis of the business

prices.; All of us
who
have had
been few and far between
anything to do
during
with bonds during the past three
the last
three I years
of a bear
market/ iit- .G overt? men t sequrities. years will, I am sure, readily ,tes-.
The developments to which I re¬ tify.to these facts.jr*-"-/,*>
accounts

Continued

changes promptly by last raise because certain of the rected against the Federal Reserve
firming, as the case may Federal Reserve Bank were known
and the easing or firming of to have opposed the move in the
these

easing

-this moment

witnessed

high

very

level

belief

time

that

business

even

that

beginning to show some
signs of leveling off.
Neverthe¬
less, eventually all 12 banks fell
was

in line

and

the rate

was

throughout the country.

uniform

are

pleased

to announce

that

F. Kenneth Melis

addition, the Federal Reserve
until
recently
consistently
kept the supply of negative re¬
serves—that is, the excess of bor¬
has

rowed

reserves

serves

—

around

ing

excess

level

;•

and

jarvis j. slade

somewhere

iweeks

recent

have been

million.

have become Partners, in

the
negative
holding around

These

factors

firm

our

cer¬

tainly had some effect in discour¬
aging banks from borrowing to

F. Eberstadt & Co.

finance the
tal

re¬

$500 to $600 million. Dur¬

reserves

$300

over

huge outlays of capi¬
etc. During these
years,
the Gross
National

expansion,

few

Product increased from
rate

$361.2

annual

January 2,1958

irr

1954, to $434.3
in the second quarter of 1957. The

business activity.
Federal Reserve Index of Indust¬
situation, as it exists today, we
Production
remained
rela¬
are
This growth in the economy was rial
immediately confronted with
a series of
contradictory influences sustained lor such a long period tively constant during these years
.

*An.

address

fore the

Mr. Winterhalter

Conference

Bank

largely because of the continued but began to turn down early this
strong demand by customers — year after reaching a high of 147
business and government — for in December 1956. A part of the

be¬

Correspond¬

ents
sponsored
by The First
National
Bank of Chicago, Dec. 2-3, 1957.

and

services;

goods

and

increase

uct

goods

"the

was

Gross

result

Prod¬

National

price

rises

spite of the efforts of the mon-'
etary authorities to prevent it.
ARE

MR.
HAS

The

PLEASED TO ANNOUNCE THAT*

REGINALD

BEEN

APPOINTED

effect

of all

this

has

to force the cost of money

KNAPP

is
a

MANAGER OF OUR

to announce

the election of

and

been

higher

Samuel Chandler,

and

pleased

Edward Burns II

are

higher. The Bank Prime^ Rate
presently 41/2%, the highest in
great many years, and the Gov¬

jr.

Vice Presidents

ernment has been forced to refund
UNLISTED TRADING

DEPARTMENT

G. c. Haas & Co.
,

MEMBERS

ESTABLISHED
NEW

YORK

1910-

STOCK

EXCHANGE

BROADWAY, NEW YORK

TELEPHONE BOWLING GREEN 9-7060

•

TELETYPE NY 1-2746

its maturities at steadily higher
prices.
Bankers who have con¬
sistently maintained a staggered
maturity schedule — that is, one
which has a certain percentage of
holdings due each year — have
been able to refund holdings at
continuously more attractive rates,
while at the same time enjoying
a

substantial

from

high

increase

rates

revenue

commercial

F. Eberstadt & Co. Inc.,
Manager and Distributor of Chemical Fund, Inc.
65

BROADWAY

December 31, 1957

NEW YORK 6, N. Y.

page

The Commercial and
3

Financial Chronicle

Thursday, January 2, 1958

...

(8)

Also in the current
Education, Meat and

N. Y.—SI per year.
discussions of the Cold War ill

Place. New York G,
issue are

Dealer-Broker Investment

'•Company.

understood that the firms mentioned will be pleased
.

the following literature:

send interested parties

;

Co.—Memorandum—^Shearson, Hammill &
Co., 14 Wall Street, New York 5, N. Y.
*■
Texas Eastern Transmission—Memorandum— Fridlev, Hess &
Frederking, Texas National Bank Building, Houston 2, Te'X.
World Wide Helicopters Ltd. — Analysis — Blair & Co. Incorporated, 20 Broad Street, New York 5, N. Y.
Roebuck

Sears,

Recommendations & Literature
It is

and C. 31. Hall

Company, Prophet Company,

Man, Holophane

«r

Bond

„

33)-r-DIsoussing seven additional companies
in missiles and rocket field whose shares are held by the
Fund and citing a study of world supply and demand for
uranium for power and propulsion purposes—Atomic Devel¬
opment Securities Co., Inc., 1033 Thirtieth Street, N. W.,
Washington 7,-D. C.
;

Atomic Letter. (No.

York
Bond

Ahead

— Burnham and
York 5, N. Y. Also avail-

investment letter

View —Monthly

'•

Securities With Warrants—Reviews y.
Richardson & Sons, 173 Portage Avenue, East, Win-;

.Convertible Securities and
*

—James

;/a

issues—Leason & Co;,
Salle Street, Chicago 3, 111.
•

39 South' La

Incorporated,;;
1. \,!.I ! _5'

issues—Stanley. Heller. & v..
Co., 30 Pine Street, New York 5, N. Y.
"
f
58—List Of suggested

for

Stocks

—

"Japanese Economy

—

Report

—

— Har¬
Y. Also

Analytical brochure

ris, Upham & Co., 120 Broadway, New York 5, N.
available is a report on Standard Brands, Inc. ;

a b

evil

up-to-date

com¬

and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y.
•j''1-'
•
•
•

and

—

Broad

Speculative Rail Bonds—Analysis—J. R.

Willistfon & Co., 115

appraisal — Bache & Co., 36 Wall Street,
5, N. Y. Also available is a discussion of Outlook

Steel Industry —An

Aztec Oil & Gas

Co.—Analysis—Ladet, Steele & McCune, First
Colo. 1

ses

Also in the same circular are analy¬

ganization, 120. Broad way, New York 5, N. Y.
&

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

Davis

—

Discussion

It is
is

"Monthly Investment Letter"

ert

told, that

being carefully guarded by the
people can't stand it.

lished contend that the American

May & Gannon, 140 Federal

withstand anything,
being a hardy race, and I imagine,
also, being pretty case-hardened

—

people

Street, Boston 10, Mass.
Safeway Stores, Inc.—Memorandum—Green, Ellis & Anderson,
61 Broadway, New
San Jose Water

5ut

Works—Analysis—Dean Witter & Co., 14 Wall

Paper

Company—Analysis—Harris, Upham &

Broadway, New York 5, N. Y. Also available is
Automatic Canteen Company of America.
Seaboard

Western Airlines—Discussion in

Co., 120
report qn

current

Jiyes and reduce us to a second
rate
has

issue

being interested in fads and

particularly in things that we are
told are likely to affect all of our

Street, New York 5, N. Y.
Scott

can

jgjbunk.

York 6, N. Y.

"American Investor"—American Stock Exchange, 86 Trinity

nation,
out

gone

in his recent life. In

nation.

Over-the-Counter

Securities

New

York

have

not

are

many

Senators

days

there

my query:

would

Congress¬

Washington

but those that

approached,

officials of

Trinity Place, New York 6, N. Y.

sounds

the

Security Dealers Association

and

the

That

There

these

Members:

fascinating.
My guess is that the term "re¬
duced" is exaggerated. We could
hardly be reduced but by having
another nation go ahead of us, we
might end up in second place.

men

TROSTER, SINGER & CO.

much re¬
anything
the first place
as

particular appeal be¬
suggestion that we
might be reduced to a second class
of

cause

Specialists in

this matter

it has had

correspondent

your

are,

together

ex^dtive

with

to be

the

year

can

finished

and

and municipal

get at it, one

Rob¬

secu¬

quite the same with the

somewhat

nounced

pro¬

Treasury issues.

Big

;

the case of U. S.

story in

rities

January

Calendar

Presumably potential corporate
borrowers still are disposed to look
for

bit

help

tomary January
since

mand

of National

from the

cus¬

reinvestment de¬
of them
substantial new

number

scheduled

have

sive
lion

would believe.

the money

and spend

the Gaither report rec¬

ommended, it would frighten the
Russians

into

to believe

grounds,
belief.

attack.

are

any

welcome to the

Ahead
January could

market upward of $500
Royal Dutch Petro¬
projected offering of 7.6
shares of stock is included.

bring to
million,
leum's
million

prospective debt
Gas & Electric
million of bonds which
up for bids on Jan. 21.
raised from an original

Largest of the
issues

Cd.'s

Pacific

is
$75

should be
This

was

undertaking.

$60 million

Commonwealth

Edison

Co.

Chicago will be putting $50 mil¬
of debentures on the market

lion
the

$40
to

of the month, while
Virginia Pulp & Paper has

middle

West

million

of debentures ready

go.

Light is plan¬
S15 million of
bonds and $10 million of preferred
and Alabama Power Co. will seek
to raise $30 million through the
Pacific Power &

ning

market

sale of bonds.

you

the military has

spending money
you

the

Large Issues

explanation given to
the military figured

that if it were to go out

resisted

second

one

over

issues,

new

The final half of

the President in the light
traitorqus which, of

that

want

$100 million
two largest
being $30 million each for Connecticut Light & Power Co., and
Washington Water Power.;

ing this to the President and he
wouldn't do anything about it so
the CIA figured it g patriotic duty
to turn their information over to
the
Gaither bright young men.

Another

just ahead promises

well

bring

suggested, the CIA has been tell¬

for bids.

week

The

to absorb,

additional

putting

spending millions. If you are to
report seriously,
the
CIA told
them something
which they wouldn't tell the Pres¬
ident. their boss. Or, as is being

course,

cates

take the Gaither

This puts
of
being

exclu¬
$51.4 mil¬
in
equipment trust certifi¬
which the railroads will he
market

the

for

whether

big businessmen
and industrialists, as this commit¬
tee was, they got a bunch of bright
young men to do the work. These
fellows
got out of bounds and
came up with a report that we are
new at the mercy of Russia.
Where did they get this infor¬
mation? Thev didn't go to Russia.
The only authoritative place they
could have gotten it was from our
own CIA, our hush-hush organi¬
zation on which \ve- have been

that

"What do'you think it

mean-

Cutler, Secretary

branch,

is^uo question

pro¬

reversal

all committees of

Those who demand that it be pub¬

Analysis

The

they are
Republicans. This
committee was charged, for want
of a better subject, with looking
into the need of shelters against
Russian missiles. As is the case of

the outlook for the market.

—

near

Democrats

Fisher Governor Company, and

Lowell Shops

newspaper

The re¬
of Presidents,

Hayden, Stone & Co., 25 Broad Street, New York 4, N. Y.
Also in the same issue is a discussion of "Glamor Stocks,"
Saco

less

olferings this month.
a
good showing with some of his
The way things shape up now
friends, suggested that the Presi¬
dent put them on a committee." the first month of the new year
This business of putting men on a could produce a total -of $535 mil¬
committee is a great weakness of lion of new corporate borrowings

eyes
out.
for further de¬

we are

somewhat

Government

Security Council, wanting to make

youi*

something,

What is it?
I have read that

Congress,

Madison Avenue

space

the American

3.84% basis.

of Mr. Eisenhower's advisers,

Administration because it is afraid

—

„

3.61% basis. Double A
yields rose from 3.70% at the end
of 1956 to around 4.12% in No¬
vember and currently are around

to see.

and

tails.

Corp.—Bulletin—Joseph Faroll

Co., 29 Broadway, New York 6, N. Y.

Parke

this

Watch

early in November and,
As, from 4.01%
to
Currently * these groups

November

being ghoulish, I
imagine, is going to be determined

$8 billion annually

knock

will

that

Corp.—Memorandum—A. M. Kidder

National Distillers & Chemicals

shelters

one

that

publicity says, something

vance

the

4.05%.

were

around

Congressmen were permit¬
ted to take a peek at it and fell
over in
a
faint.
It is something

technique. First, our curiosity is
appealed to. Coming soon, the ad¬

Corporation—Bulletin—De Witt Conklin Or¬

3.95%

and

Double

4.55%.

three

port has apparently had some

Inc.—Analysis—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.

National Dairy Products

raid

the most expert

Litton Industries,

'McRae Oil & Gas

country has
Gaither re¬

apparently it has.

And

ends

from 3.76% at the end of 1956

for

report.

to the Gaither

something they have been
clamoring for.

of Brunswick Balke Collencler and J. P. Stevens.

about

to 4.23%

However, those are days agone.
We have advanced in civilization

gram,

Co., 31 Milk

year

Triple A ratings having moved t"

the Chinese who came.

to spend $22

air

additional

is just what
days Britain

Butler, who later became prohibi¬
Pennsylvania, with
two marine battalions, held off all

missiles, etc. That is something
that should appeal to our pundits
as a "bold
and imaginative" pro¬

National Bank Building, Denver 2,

Street, Boston 9, Mass.

cause

for

those

tion director of

1958.

Boeing Airplane—Analysis—du Pont, Homsey &

lion in

happens, however, that I

placency,

the

a«

latter

Why, in the Boxer rebel¬
China, a marine, Smedley

world.

just now a greater concern
1hat is a movement which

billion
New York

this

port. From what I can gather, this
is no mean
accomplishment.
It
should shake us out of our com¬

Broadway, New York 6, N. Y.

and Investment Policy for

and

managed to produce a

Street, Philadelphia 9, Pa.

basis
,

around

former, are

ments

through the orbit, our

Comparison of 12 largest Phila¬

4.18% early in November.

1956 to
The

delightful in its simplicity, of
nounced. Triple A ratings mounted
browbeating the Nicaraguans and
from around a 3.62% basis at the
the Mexicans, and an American
end
of
1956 to 3.96%
early in
citizen was safe in any part of the

Carlisle Bareeron

protect me from the Gaither
report. It seems that while the
Russians have a sputnik floating

delphia Banks—Stroud & Company, Incorporated, 123 South

yields

3.54% had hit a peak of4.08%, with Double A rated liens
moving from 3.63 at the end of

the smaller nations, fur¬ are yielding around 4.03% and
nishing them arms, having trouble 4.47%, respectively.
keeping them within their "or- In industrial bonds the move¬
bits."
We had a delightful time,

would

■

obligations
with

1956

money to

•

not

have

yield

Stocks

moment

organization.
Inasmuch as it is
composed Of very high-sounding
names, I sort of wonder where it
was when Joe McCarthy and Mar¬
tin Dies were taking the raps.

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

Bank

it to go

purposes
needs of

New York.

Philadelphia

•want

with the aims,

—

Over-the-Counter Index—Folder snowing an

money'

around

global leaders. They were the ones
who always had
to be giving

and I wouldn't

sympathy

Nomura Securities Co., Ltd., 61

Current information

its

utility

finished

which

secondarily France were the

and

doers

nation

class

were.

heartily in

Yamaichi Securities
Company of New York, Inc., Ill Broadway, New York 7,
—

second

machinations

that I

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

fore

ilt u

for

Investing in the Drug Industry

the

course

And, of course,
reached

began to reminisce of the days be-.;
The * story : is pretty, much the
the First World War when a same in railroad liens with yields

serious
a t i o n :,
out: the

very
s

Canada.:-:' -v iCiCii

..Depressed Stocks—List of

Triple

correspondent has before class nation," they have responded,
him a letter from a very formi¬ "it would be unthinkable."
This, as it has turned out, is just
dable group of men soliciting his
their first
blush.
Their second
support for an organization to
thoughts are more sobering. Par¬
check the
r
ticularly the old timers. I have
communists in :
seen a wistful expression come on
our
midst.
It
the faces of those fellows as they
describes

-nipeg and Royal Bank Building, Toronto,

the

reversal

Board's

BARGERON

By CARLISLE

Canada—Analysis of outlcok—
Company Limited, 320 Bay Street, Toronto, Ont.,

Company, 15 Broad Street, New
able is current Foreign Letter.

arc

just ended.

just prior to the Federal Reserve

Your

Markets

Stock

and

Burnham

of the [Neivs

S, N.- Y.

Gairdnej* &

<•

wide
year

policy in mid-November.

Canada.

Washington

swung

the crown of the arc was

Pine Street, New

Prices—Outlook—Park, Ryan, Inc., 70

Bond

From

as measured
by
through a rather

prices*

yields,

James O.

Stephenson Opens

BRADENTON, Fla. —James

to engage

in a

offices here
securities business.

Stephenson has opened

Volume

187

Number 5704

The Commercial and Financial Chronicle

(9)

Interest

these Bonds is
exempt,

in the opinion of Bond Counsel

Federal Income Taxes under

to the Underwriters and
of Counsel
existing laws, regulations and rulings. -

$250,000,000
Public

Utility District No.

District, from all present

: ;r/:r.

;

■

1 of Chelan

County

WASHINGTON

•

to the

Rocky Reach Hydro-Electric System Revenue Bonds, Series of

1957

Dated December 15, 1957
Due July

Principal and

1, 2013

semi-annual interest,

January 1 and July 1 (first interest coupon will cover a 6j£-month
period ending June 30, 1958), will be payable at the
or_7^a^ ,,a^ *•
principal offices of the Paying Agents set forth in the Official Statement. Definitive Bonds will be issued in coupon form in the denominationoption of the holder in New York, Chicago
and in fully
of $1,000, registrable as to
registered form in the denomination of
principal only,
$1,000, $50,000 or multiples ol $5,000 in excess ot $50,000. Coupon and
fully registered Bonds will be interchangeable.
.

The Bonds will be redeemable

principal

amount and

(2) in part,

least

thirty

days"published notice, (1) as a whole or in part, at any time on and after
January
interest payment date on and alter July 1, 1962, at 100% of their
principal amount, but solely
Account and (b)
any excess monies in the Reserve Account;

on any

plus accrued interest in each

|
I

case to

1, 1978,

the option of the District, at 100% of their

from (a) the

the

amounts

credited

the Bond Retirement

redemption date.

A Bond Retirement Account is
provided for the Bonds

whereby, beginning in the twelve months ending July 1, 1969, the Bonds will be retired in
full by
maturity in increasing annual amounts, as set forth in the Official Statement.
V'

•

The Bonds

are

be issued

finance the

completion of construction of the'775,000 kw Rocky Reach Hydro-Electric
Project scheduled to begin commercial
May 15, 1962. The District has entered into Power Sales Contracts with
Puget Sound Power & Light Company, Aluminum Company of
America, Portland General Electric Company, Pacific Power &
Light Company and The Washington Water Power Company whereby the District is
make available to said
obligated to
Companies, and they are obligated to take and pay for 100% of the
Project Output for a period of 50 years from and after the Date of Com¬
mercial Operation (to
approximately the year 2012), or until the Bonds are paid or provision made for their
retirement, whichever is later, subject to the reserved
right of the District to withdraw for its own use br lor sale to others for utilization in Chelan and
Douglas Counties up to 17.9% of the Project Output.
operation

on or

about

Under said Power Sales Contracts each of the
above

Purchasers is
obligated to pay in monthly installments 115% of its proportionate share of the amounts
required annually lor interest on and the scheduled retirement of
principal of the Bonds (and on $23,100,000 Rocky Reach Hydro-Electric System Revenue
Series of 1956,
Bonds,
including premium thereon, which were issued in December, 1956 to initiate construction of the
Project), and its proportionate share of all other
costs of
producing and delivering Project Output, as described in- the Official Statement. The District will have a similar
obligation with respect to such part of
Project Output as it may utilize.
The Bonds will
constitute, in the opinion of Messrs. Wood, King & Dawson, Bond Counsel for the
Underwriters, and Harvey F. Davis, Esq., Counsel for the
District, valid and legally binding obligations of Public
Utility District No. 1 of Chelan County, Washington, payable from the revenues of the
Rocky Reach
Hydro-Electric Project of the District on a parity with the Series of 1956 Bonds referred to above.
Said Counsel also will render
opinions as to the validity of the
Power Sales Contracts.
'

Price 100% and Accrued Interest

The Bonds
.

are

offered when,

and if issued and subject to acceptance by the Underwriters, to approval of their
Counsel, to prior sale and to withdrawal, cancellation or modification of the ofer without notice.
reserve the
right to reject any orders for the Bonds. The offering is made only
by means of the Official Statement, copies of which may be obtained in any State,
inwhich this announcement is
circulated,from only such of the undersigned and other dealers as may lawfully offer these securities in such State.

The Underwriters

HALSEY, STUART & CO. Inc.

JOHN NUVEEN &. CO.

B. J. VAN INGEN & CO. INC.

SMITH, BARNEY & CO.

(INCORPORATED)

KUHN, LOEB &, CO.

LEHMAN

BROTHERS

HARRIMAN

RIPLEY & CO.

EASTMAN

CO.

MERRILL

EQUITABLE SECURITIES CORPORATION

LYNCH, PIERCE, FENNER & BEANE

A. C. ALLYN

AND COMPANY

BROS. &

HUTZLER

BEAR, STEARNS & CO
R. W. PRESSPRICH

STONE &

WEBSTER

& CO.

CO.

SHIELDS & COMPANY

PACIFIC

ALEX. BROWN

&, CO.

GLORE, FORGAN & CO.

SECURITIES CORPORATION

LADENBURG, THALMANN & CO.

CO., INC.

WHITE, WELD &, CO.

DREXEL

INCORPORATED

SALOMON

BLYTH &

DILLON, UNION SECURITIES

INCORPORATED

KIDDER, PEABODY &,

DEAN

&, SONS

NORTHWEST COMPANY

WITTER

&, CO.

PHELPS, FENN & CO.

BLAIR

& CO.

IRA

HAUPT &, CO.

INCORPORATED

HEMPHILL, NOYES & CO.

HORNBLOWER &, WEEKS

PAINE, WEBBER, JACKSON & CURTIS
BACHE

& CO.

REYNOLDS & CO.

BACON, STEVENSON & CO.

HALLGARTEN

F. S. SMITHERS

A. G. BECKER

Sc
&, CO.

CO.

F. S. MOSELEY

WERTHEIM

J. C. BRADFORD &,

&, CO.

CO.

COMPANY

DOM I NICK & DOMINICK

INCORPORATED

FIRST OF

MICHIGAN CORPORATION

W. H. MORTON

&. CO.

WM. P. HARPER & SON

L. F. ROTHSCHILD

&. CO.

INCORPORATED

STIFEL, NICOLAUS & COMPANY
INCORPORATED

MURPHEY

FAVRE, 1NCi

December 30, 1957.

WEEDEN

& CO.

INCORPORATED

FRANCIS

I. duPONT &. CO.

GRANDE & CO.

McLEAN

INCORPORATED

■

&. COMPANY

HIRSCH

&, CO.

SHEARSON, HAMMILL & C6.
*

HAROLD H. HUSTON & CO.

FIRST WASHINGTON CORPORATION
"

COMPANY

ESTABROOK & CO.

HAYDEN, STONE & CO.

SCHOELLKOPF, HUTTON &. POMEROY, INC.

BADGLEY, FREDERICK & ROGERS, INC.
*

& CO.

CLARK, DODGE &, CO.

INCORPORATED

R. S. DICKSON

ALLEN

& CO.

BRAMHALL & STEIN

The Commercial and Financial Chronicle

*10

Forecast for 1958

Thursday, January 2, 1958

(16)

Lower
it

during 1958.

One of the
tors

They

the coming year.

pects of
condition
candid

insights into

money,

the Russian situation,
Eisenhower's condition
of supreme importance.

will

influence

its

What

upon Russia
will
be, no¬

knows.

body

probably

will not affect

busi¬

general

I believe

ness.

for

that
'■,

some

time our Pres¬

S#Jr

ident

policies

much

a n t

a n d ,
to
his

have

ig¬
nored.
The major effect of the
President's condition will be po¬
litical. Those close to the Presi¬
largely

for both friendship and
political reasons, are hoping for
dent,

Others in
charge of the Republican Party,
anxious about his possible inca¬
pacitation or death, would like to
see him resign and drop
out of
the picture in order to give Vicehis complete recovery;

President

Nixon

good buildup

in the hope of re-electing the Re¬
publican Party again in I960.,
For evident reasons,
crats

are

ident

the Demo¬
hoping that Vice-Pres¬

Nixon

will

not

Russian
policy . will
be
at securing control of the
United
States,' the countries of
Western Europe, and the Middle
East by infiltration.
(2)

have

The

opportunity to function as Pres¬
ident before the coming election.
Therefore, President Eisenhower's
condition could greatly influence

cold

costs

war

billions

States

the

dollars

annually. This can be paid for only
through increased taxes or infla¬
Commission's

recom¬

radical

economy.

mendations

for

will

Profits

(4)

of the

adoption

by the

Hoover

e e 11

sales.

retail

further

squeezed during 1958, as a result

higher costs and pressure for
lower prices.
(5) Competition at all levels
will increase during 1958.
of

(6) Only, more
both

advertising

manufacturers

and

retailers

will enable them to keep up

their
present gross volume during 1958.
(7) Failures will increase in
1958. These will apply mostly to
small concerns, but some one of
the big companies in the DovvJones Averages may collapse.
(8) Predicting
a
lower total
volume of business for 1958, com¬

pared with 1957, I forecast a mod¬
erately lower trend, on average,
for wholesale commodity prices.
Expect a gradual decrease in the
cost-Of-living during 1958.

labor

Wise

(9)

leaders
will
higher wages,
shorter hours,

hesitate to fight for
but

will

for

try

political situation during the pensions, and other "fringes."
next few years. This would cause
(10) European
countries will
uncertainty and retard large goi>- have less to spend for American
porate
expansion
programs
as goods, and foreign trade will de¬
well as consumer buying.
cline in 1958 compared with 1957.
the

III; in fact, I
confident that Russia, will go

wants
am

Russia

that

believe

cannot

World

some

War III.

case

avoid World

of any retaliation

Russia would suffer great
Moreover, if Russia has
any hope of conquering our coun¬
try, she certainly wishes to preserve
our
cities, industries, and
.other valuable assets. Russia has
us,
losses.

land enough now; it is our in^'istries which Russia wants.
This
also applies to England and West¬
ern

Money Outlook

War

lengths to
In

Europe as well as the United

will rule all markets.

war

South

(11) Money will continue to be
"tight" during 1958 for new bor¬
rowers
a

who have not established

satisfactory line of credit.
(12) Owing to
declining de¬
for funds,
interest rates

mands

will decline in 1958.

(13)
bers

Concerns with large num¬

There

(21)

unless

line

the automobile
of gratitude for
our
present prosperity.
It is a
bellwether of general business for

y' y, V '

able

labor legislation.

cau&e

be made

Chins"

Much, how¬

BANK STOCKS

Indus¬

' ■; '

trials.

condition.

market."

(41) The "bloom is off the stock
We will have rallies and

/,''

reactions

(24) Congressional attempt will
be made to elminate the present
exemption of labor unions from
anti-monopoly laws.

(25) 1958 will be

sad

year

broad
This

ment
"

there will
tional strikes during
industry,

with
the

should

wages

v na¬

difficult

for

the

will
next

group

er's seat.

commercial

of 12 largest Philadelphia Banhs

the

fortunes

large

will

These
a

have

the

first

reach

buying level.

If you are to buy
low-priced
stocks,
you
seek
companies without
much
cumulative
preferred

should

This is the
"preferred" rec¬
ommendation in paragraph 43!
outstanding.

opposite

the

(45) Large bank balances will
a good investment
in 1958. Many savings banks are

continue to be

farms
during

now

stocks

their

INCORPORATED

owners

lose

present high-salaried posi¬

tions.

PHILADELPHIA 9
ALLENTOWN

ATLANTIC CITY

(36) Construction
activity in
many communities will decline.
Older

houses

will

market.

(37) In

come

sections

when

■"

the

disarmament in

1958.

to me now, however, that
the present race in guided missiles, atomic underwater navies,
appears

back

slavery, unless disarmaa serious goal. The
Sputniks! should * hasten
either
another military world war or the
elimination of world wars. Sput¬
niks should shorten the cold war

ment becomes

now

in progress.

Speaking realistically, the
hope of the United States and the
world depends upon our spiritual
relationships. Only as we grow
spiritually, along with our material growth and military power,
can the world be kept in balance.
Therefore, my final appeal is for
the support of all churches of all
(50)

denominations

and

minis¬

their

ters, priests, and rabbis who are
carrying the torch of righteous¬
ness.'

'/,

Edwin L. Tatro Go.

Admits John DeMarco
Edwin

cialists

stocks,

Tatro

Broadway,

Company, 50
City, spe¬

New York

bank

insurance

and

that John
been
admitted

announced

DeMarco

has

Admit lo

many' corpora¬
tions interested in atomic energy,

electronics,

rare

Partnership
Delafield,

14 Wall

Street, New York City, members
of the New York Stock Exchange,
announce

that Walter B. Delafield

has been admitted to the

firm

as a

general partner.
Mr. Delafield's admission to the
firm

was

previously

reported in

the Chronicle of Dec. 12.

Thomson McKinnon Admit
Thomson & McKinnon, 11 Wall
Street, New York City, members
of the New York Stock Exchange,
on Jan. 2 will admit Mary G.
Prindiville to limited partnership.

Universal Mutual Fund
KANSAS CITY, Mo.—Universal
Mutual Fund Associates has been
formed with offices at 5534 Troost

to engage in a securities business.

Floyd M. Baird is
the firm.

principal of

metals^ and other

industries

will
become
profitable to
investors, some of these new com¬
panies will be wiped out. Hence,
„

Delafield

common

Two Join Shaiman

prosperous, and

investors should be very
in connection therewith.

careful

fSoecial to The Fixanctu,

(47) Utility stocks should hold
own
with regard to divi¬

;

Chronicle)

DENVER, Colo.—Ray A. Jiinge

and

Richard

joined the

Sturch

have

staff of. Shaiman'and

Company, Boston Building.

their

dends and

marketability. .Electric
will always be in demand.

(48) Most railroad stocks should

forecast

(46)' Although

the .power

many

reach

low level.
This
time may NOT
come
in4 1958.
Here again, much depends upon
President Eisenhower's condition.

may

their

—■"

available

cash

growth

come

these

market

dictator

made

market

stock

(35) The
growth
of
suburbs
continue,
although
many
houses now occupied
by wellpaid executives will be forced on
the

even

fear of Russian missiles.

STROUD & COMPANY

while

continue

must

Congress can for a
lengthen
the
prosperity
This it will attempt to do
yet

Delafield A Delafield

too

will

operate,

buying non-dividend-paying
stocks at $5
a
share or under.

news

continud
to lose in population.
Large city
real estate will sell for less, for

Reaction

anc|

general partnership in the firm.

(33) Under an economic dic¬
tator, farmers would receive" no
increased price supports. If
f§jrm
prices are fixed, they will be at
.(34) JLarge cities

q£ QUr national crises, but
is now on a Political Standard.
Although Newton's Law of Action

many

from

Pr bearish.
Our country is not
how operating 011 the Gold Standard
which was responsible for

recom¬

(44) The

This especially applies

Large

...

member, I am now recommending
only high-grade cumulative noncallable preferreds,

political leaders have feared that
the country is headed for a social¬
ist or labor government. A cheer¬
ful sign now is that such fears
may, temporarily at least, be for¬
gotten.
The American working
man
is
himself
becoming dis¬
gusted with too powerful labor

continue

be the first stocks to recover. Re¬

the past few years
been sitting in the driv¬
Many industrialists and

1958.

begin

(43) Good cumulative non-call¬
stocks will also be
in demand during
1958.
Owing
to
the money
market, thev re¬
cently suffered in price; but ow¬
ing to lack of supply, they will

po¬

to small farms.

...

able preferred

(30) For
labor has

will

market

bond

mend.'

college graduates to get good
sitions at high wages.

Goal

Disarmament

Notwithstanding the above,
we cannot now become panicky

upward. This especially ap¬
plies to tax-free-bopds, the pur¬

(29) All workers, especially of¬
workers, will be more effi¬
It

going

chase of which I strongly

fice

1958.

in¬

vestors.

creep

part of the cold-war program,
retail prices will also be fixed.

avoided

as a

cient

There is too much
missiles, bombs, and

report.

years,

the

fixed

many

stock market
up during the past
the bond market has
been
going down.
The reverse
will take place during 1958. While
the stock market is doing down,

I forecast that automation
slowly increase during 1958.

(28) If

for

time

(42) (While,. the

few

(27)
will

first

downward.

that I have said this in my

has been

the
auto

be no
1958.

fallout.

;-/

forecast that
exception of

(26) I
possible

but .the

1958,

will

the

®bout

increase of unemploy¬

during 1958.

annual

labor leaders. I forecast that there

will be

during

trend

years

for

lower levels.

Dow-Jones

the

will depend upon President
Eisenhower's physical and mental

—*■-

PHILADELPHIA

•

paying 3% to 31/2% interest
These balances, however, should
prosper
1958, but the small farmer, will pot be looked upon as permanent
continue to suffer if dependent on 'investments,
but * rather
as
a
means
of enabling you to " have
farming.

Maintained in all

•

the failure

one

ever,

(32)

PITTSBURGH

will

of the big corporations-whose
i«
r-mnnothA
"80
Riim
stock
is
among
the
"30
Blue

will

•

owe

debt

The Taft-Hartley Law will
not be repealed in 1958, and may
more severe.

1958. It is, however, like everysurprise satellites, and other trething else, subject to the business mendous
destructive
military
cycle and may be a cause of'the/equipment could ultimately rob
next depression.
Another prob- Us of our freedom and turn us

(23)

ing

LANCASTER

estate

real

present^

industry

(31) Land adjoining cities and
towns will increase in/value dur¬

NEW rORK

but the

automobile,

stage where it could revo-

stock

Send for comparison

late

the

lutionize

revelations
brought
about by the investigation of the
Teamsters Union may lead to im¬

Trading Markets

The short-haul

own.

requires an economic
temporarily regulate
money, wages, prices, rents, taxes,
an(j industry in general. -1 cannot

Outlook for Real Estate

Active

1;jpc

States

United
/

prices.

The

portant, new

i,-.

will be

heavy freight,

cycles.

general

should

roads

much

ing

■>'./■

the

cialize

the'best to

burban real estate and farms owe

government—as a

reserves

:
/ c
(40) The most important factor
ip connection with real estate is
the parking problem, which is a
curse
of almost every city. ,Su-

the cold war — will fix
wages
in many industries and
prevent further increases during
(22)

oil

t° recover

:theie_is rationing of

?;/"

1958.

h j

automobile industry is no>y reach-

Outlook

will

the

that

part

should

will receive
first consideration both by banks
and by the government.
(14) For fear pf World War-JIIf leaders. This should be good
and
due
to
declining business, to all honest employers.
employees

W) C
?£
begin

In the

meantime, the securities of the
loiig-haul railroads, which spec-

applies to pine
especially
in
the

—

fear

certainly
tracts,

(20) Bankers will fear that the
government—as a part of the cold
war
will appoint a dictator to
direct the policies of all national
banks,
the
leading , stock
ex¬
changes, and investment dealers.
Labor

woodlands

Well- located

wood

aimed

tion,

disappoint¬

affect

greatly

United

ment, his rec¬
ommendations
Roger W. Babson

could

(3)

making

p o r

(1) The present cold war will
intensified during 1958. This
increase fear of war, which

will

not

has

been

This

1958.

corporation bonds.

houses

Mor^ young take over the Tailioads.

will continue to increase in price.

\ (19) Investors
will
continue,
during 1958, to switch from stocks
to attractive bond issues; fear of

1958 are as follows:

[for less.

sell

(38)

and

turnpike,

bonds will in¬

I forecast higher prices for

many

Therefore my forecasts for

States.

during

(18)

outlook.

"Authority"

crease

stock purchases and
labor, real estate, and business

President

municipal,

other

business to suggestions on
'

state,

effect of Eisenhower's

long-term

The supply of non-taxable

(17)

from skepticism about the pros¬

range

World War III and probable

easier

loss.

people and old people will insist
upon every modern convenience
and upon locations not absolutely
dependent on automobiles.

will

rates

money
to sell

bonds

country's most widely known financial commenta¬
lists in his well known weekly column over 50 presages for

Will

apartment

old

aithougn

is now being operated at a
Trucks, busses, airplanes,
and private automobiles will ultimately force the government to
ness

apartments than for single houses,

nomic dictator.

make

ROGER W. BABSON

demand

Money
rates
may
be
during 1958 by an eco¬

(15)
"fixed"

there will be a greater
for cooperative modern

country

many
plans
for
expansion
plants will be postponed.

Business and Financial

(10)

be avoided.

Most passenger

busi-

Charles Tifft, Jr..
Charles

Tifft,. Jr., -partner in
Schirmer, Atherton & Co., passed
away on Dec.. 26th.

Volume

137

Number 5704

The Commercial and Financial
Chronicle

(11)

J
negligible,

Tax Aspects of
By

DAN

Depreciation

TIIROOP

Deputy to the

than

should

the

Treasury

Maintains

expansion.

laws must be fair

tax

economically sound, with

well

cost

economic

through its influence

individual corporate

costs, price

determination,

come

well

and

decisions

>The\tax treatment of

depreciation influences tax receipts in a
country's budget position in ob¬
vious
ways.
With
corporations

r:
•-•

alone

taking
'.depreciation

deductions

"£'$13.7

•

ior

and

clear t fra t
h

a n

the
o

allow¬

ances

Dan

important

Throop Smith

tax receipts. The treatment of de¬

preciation also

importance
ence

is of fundamental

because

capital

its

influ¬

investment

and

the rate of industrial expansion.

Modifications

countries

both

discourage

tax

deprecia-

foster

and

capital

expenditures,
as required
by changing national
needs.; In this country
we
have
twice recently used 5-year amortization to encourage private in-

-vestment

facilities.

for

defense

emergency

When strictly limited to

true defense needs,
zation has a useful

rapid amortirole

play,
although it creates inequities and
dislocations when applied too long
or too extensively.
/
V
.

Policy in Other Countries

Canada, in contrast to
methods of giving rapid
for

poned
and

our

own

amorti¬

defense

plants, post¬
depreciation al-

ordinary

lowances

im¬
ac¬

business

investments

equipment

that

plant

Were

not

invest¬

question of "How much?"
involves a determination of the

total

amount

ciable

the life of

over

written

off

item of depre¬

property, and this in turn
into

down

the

gross

amount of the investment and the

presumed

salvage, if there' is a
substantial amount, to determine
the net cost of the

of the
prop¬
erty to be allocated and recovered
its

use

life.

useful

The question
of "When?" involves both the to¬

over

tal

time

period

which the
net cost should be written off and
over

dollars spent

the actual

acquire it and make it

for

use.

Exceptions

ready

to this

gen¬

eral rule may be

proposed for two
types of trans¬
actions
involving exchanges of
property have been permitted to

reasons.

Certain

needed for defense purposes dur-

occur

irig

hamper normal business develop¬
ments; the necessary corollary of

period of the
Korean
emergency. An incentive to con¬
the

centrate

•plants

alone
/

investment

thus

entitled

were

depreciation

from

their construction

inflationary

in*

defense

because

arose

they
ordinary
time T of

the

purchase and

pressures

re¬

were

duced

by making other capital
outlays less attractive temporarily.

•

Other countries have used spe¬

cial

allowances

depreciation

foster

investment

construction

needed

for

in industries

free

tax

tax-free

forward

order

transaction

tax

not

carry

basis

consequences

deemed
and

for

sound

book

purposes

public reports.

re¬

Adjusting to Inflation

par¬

some

countries

the

allowed

immediate deductions, with the
of cost written off over

balance

remaining life, has been
useful

there.

quently adopted

The

ess

al-.

depreciable

the

entire

cost

even

only

new

assets,

in¬

discriminations'be¬

money amounts, such as
Only if the economic nyohlem Of assuring replacement of
depreciable, assets is sufficiently
serious, should adjustments to his-^

bonds.

replace fixed

and holders of other assets stated

because

„

The ' "free

depreciation" used
torical costs be undertaken with
for some time in Sweden permit?
the difficult alternative problems
•ted depreciation 'at the option of
arising therefronf;
-»
taxpayers up to 100% of cost in >'
When property is used over its
a
single year; even the' curtail-p
.entire nhvsical life, .there .is no
/ment of this still left deprecia¬
probiemu in adjusting fof
tion on a very liberal basis com- great
j

talk

by Mr.^Smith before the
York.Society of Security Analysts.
V

,•

resale
of

For those that here

value

Ring in redress

off

by depreciation for

particu¬

the

and

matter

eco¬

of technical

solescence

years

New\

every

•

such

salvage

usually.

common

the fact that

for

spite;

love of good.

Ring out old shapes of foul disease;
Ring out the narrowing lust of gold;

Ring in the thousand
Ring in the valiant

Similarly,

car

of old,

wars

years

peace.

man

and free,

The larger heart, the kindlier hand;

Ring out the darkness of the land,

Ring in the Christ that is

to be.

By ALFRED LORD TENNYSON

determining his depreciation;

to the extent that they can be es¬

timated, amounts and rates should
be related to them.
One of the principal complaints
regarding depreciation allowances

CANADIAN

has

been that they were tied too
tightly to historical records, with
too little recognition of prospec¬
tive
changes
which
would
be
likely to make the future quite
different
from
the
past.
The
validity of this complaint was
recognized in the new regulations

depreciation

forward

look*

which

invite

attention

and

INVESTMENTS
We offer

incorrect
of

because

circumstances

vestments.

United States investors

Our facilities include!

A Research

Department with
up-to-date information on
major Canadian companies.

suc¬

which

discouraged replacement of old
property.
First
there
was
the
depression of the 1930's, with its

limitations in demand for finished

complete facilities for the pur¬
chase of high grade Canadian in¬

technological improvements. Past
periods of use are in fact likely
to

Correspondence Depart¬
deal in securities by

ment to

mail.
Private wire service
offices

across

our

Canada.

rapid price increases after the

war

when

ment

have

paid

because

trfi

repair and
high replace¬

These

costs.

Inquiries from, investors
♦

make

invited.

are

circumstances

tended' to

actual

service

lives longer in the past
generation than they would have
been

under

normal

condi¬

McLeod, Young,Weir

tions. Future

planning should not
be tied down by the pattern of
replacements which developed ih
that period.
,f
After it is decided over what
period

original
should

question

difference

the

cost
be

arises

to the

way

page

Company
limited

•

Investment Dealers Since 1921
50 KING STREET
Montreal
Vancouver

Quebec

which the total amount should be

Continued

between

salvage value
written
off, a finalg
and

'
•

Ring out the thousand

WEST, TORONTO, CANADA

Ottawa

Winnipeg

London

Hamilton

Calgary

Kitchener

Sherbrooka

Windsor

Edmonton

New York

GOVERNMENT,
AND

MUNICIPAL

CORPORATION

* -

•

Ring in the love of truth and right,

replacement
to keep up with

standards.

" •'

ring the fuller minstrel in.

Ring in the

ob¬

salvage value at the end of its life-1 spread out in that period. Should

■" because

;

cause,

requires

eight
competitive

forms of party strife;

The civic slander and the

seems

rate

slowly dying

Ring out false pride in place and blood,

clear that
useful life to the particular tax¬
payer is the more important. It is
of little significance that a ma¬
chine tool might last for 20 years
if a particular taxpayer uses it
for only eight years because he
requires high precision work or
because the

poor,

to all mankind.

Ring in the nobler modes of life,

But

lar taxpayer should be control¬
ling. Both from the standpoint of

policy, it

more;

care, the sin,
faithless coldness of the time's;
Ring out, ring out my mournful rhymes,

whether physical life or the use¬
ful life in the hands of a particu¬

nomic

the mind,

The

question of "When"

depreciation is to be taken. The
problem here also is to decide

fairness

saps

we see no

Ring out the want, the

taxpayer merges into the de¬
termination of useful life which is
in

go;

With sweeter manners,
purer laws.

written

lar

basic

And ancient

the determination

•

snow:

Ring out the feud of rich and

Ring out

"How much?" is to be

going, let him

Ring out the grief that

Useful Life

vs.

new,

the

across

Ring out the false, ring in the true.

The consideration of substantial

suffi¬ rebuild

tween holders of fixed real assets

in addi¬
depreciation of

property
were

troduce

they
allowed
total deductions greater than to¬
tal cost.
generous

The year is

made

best, and in the proc¬
trying to provide for tax-

recoveries of amounts

cient

which gave immediate
fax deductions for part of the cost
of

free

lowances"

tion to the regular

drastic

are crude at

con¬

subse¬

"investment

has-been

Ring, happy bells,

goods and in financing for capital
to historical cost to permit tax de- :
goods. Then there was the war
preciation to correspond ''more <with its shortages and urgent need
closely with current replacement for all capital goods,
old and
costs.
Adjustments of this sort new. Then there was the period

substantial part of investments in

the

inflation

Ring out the old, ring in the

process

that adjustments /have been

sidered

Physical Life

other.

capital gain.

cession

ances" used in Britain, by which a

are

were

at h e r than
other result
would be inequitable. But the net
result may be a basis for tax de¬
preciation different from that
postponed

eliminated. Any

ticularly important to the national

specified industries

substitution

that

merely

'economy. So-called "initial allow¬

•

each

might last five
the
rate
or
rates
at
which
it
years, or ten, is of no importance
should be done. Comments on the
to an owner who regularly re¬
separate aspects of * these
basic places
his fleet of cars every
questions bring out * the several
year. It is the actual useful life
policy issues involved.
to the taxpayer and the actual
The gross amount of an invest¬
salvage or resale value for each
ment
is
typically measured in taxpayer which will give the basis
terms

•

sation

may be
and
estate

trust

The

breaks

•v; tion have been made in various
,v

third question of

ment problems.

lead to large changes in

can

counting, but it is not generally

deprecia¬

tion

ignore

These,

whom?", which

determin¬

ing

"When?"

and

portant

methods

later

cost

be sure,
"To

g e s

several

counting really come down to the
two
simple questions of "How

billion, it

the sale of depreciable prop¬
erty. By the juxtaposition of tax
rates, there may be a substantial
net profit from a deduction
against ordinary income, even
though it is partially offset by a

much?"

relation

,on

the

essence, all the problems and
controversies in. depreciation ac¬

•

The

ital

housing

bells, to the wild sky,
The flying cloud, the frosty light:'

year is dying in the night:
1
Ring out, wild bells, and let him die.

sion of the law which gives
cap¬
gains treatment to any profit

Ger¬

adjustments or, revalproperty to give larger
•,.depreciation 'bases.;
-•

annual rate of

$37

And

RING out, wild

property. This is especially
important because of the provi¬

after

Adieu 1957: Hail 1958

the

believed to be

was

actual

.acount in fixing the amount to be
written off over the useful life of

which have ' suffered,
drastic inflation have, per¬

uation

now

running at

industries

success.

mitted

equip¬

ment

proverbial

the

is simply
th|
between its origin*
use

Probably resale value, if it is sub¬
stantial, needs to be taken into

countries
from

plant

new

certain

notable

billion

;,/-and

countries.

its

seen

analysis,

for investments

with what

war

other

the

automobile,

transaction, and the parts must be

too, used special tax allow¬

many,
ances

in
1954,. and
.expenditures

;

and

price. The puij
use, and disposal of the pi
is, in a sense, a single coil

policies, flow of funds, in¬
regarding new property

pared

ference

purchases.
:

and its resale

depreciation being dis¬
criminatory and inequitably favoring of groups benefiting there¬
from.
Stresses importance of
depreciation accounting to
national

value,

year-old

liberal

too

removal

stantial

Treasury official points out strong influence of tax treatment
of depreciation on
country's budget position, and also the
importance of depreciation to capital investment and indus¬
trial

cost

ignored. But when a
partially used item of property is
disposed of while it still has sub¬

SMITH*

Secretary

frequently

the

SECURITIES

•

The Commercial and Financial Chronicle

(12)

the

closely

spending

Industry Lag

Cork Company

expounds
is

there

Since

deal

good

home

and

us—shelter. A larger income cer-y

tainly

provides

potential

specific roadblocks
could be cited to help explain why

purchasing power for better liying, but this doesn't mean itAvill

housing

growth has slowed. Most

used

automatically for better

housing and resilient floors.

Furthermore, it is apparent that
the so-called low-end and top-end
markets are becoming relatively
less important as more and more
families gain incomes in the sub-

of them can be summarized under
and perhaps even five* years ago. such
headings as — low producWhile there has been a favorable tivity or low efficiency in build-

behind that achieved in
other consumer markets.

—

many

....

growth, the ability
willingness of consumers to
improve their living standards,
and

ing construction, government red
tape, the lack of coordinated effort in materials design and usage,
and
the absence
of aggressive
merchandising and selling in both
the new home and improvement

stantial
means

and

markets.

middle

•

All this

brackets.

that in most instances sales

profit

success

can

best be

as-

sured if the principal target is the

sland ^ut
«' Competitiveness
Rowing mass middle income marFnfg'owth' ZfiaS^ behind reduSd^owth''SjSTMdSS
We SCa" ^,vast hor"
Three

ment to foster

feeling that the country has en¬
tered
the '"interim \ period,"
a

homes

for

Thursday, January 2, 1958

improvements than two years ago,

year

1958 than there was in 1957, and pointedly
three reasons for building growth lag.

additional housing sales each
<
'♦

Many

ing
and
resilient
flooring, the
growth rate in these fields has
lagged — especially in the past

in the "interim period"
ahead, in which profits present a real challenge to management
and no new boom in general business may occur until 1960,
is analyzed by Treasurer-Economist Hoadley. The Armstrong
Cork executive looks forward to slightly more construction and
housing and flooring industry

mortgage credit in

more
year.

public is now
smaller proportion of

income

its

long-term upward trend in build-

JIOADLEY. JR.*

Treasurer, Armstrong

The

for

market

American

The

And the Building
By WALTER E.

resilient floors?

iside the "Interim

to ex-

reasons

national economic growth: (1) the

several

existence of

roadblocks to

building expansion, K4) a general
Dunaing expansion- (2) a geneiai
failure within the building indus-

is to be found in the widespread
failure across
he industry to
the nature and severity
'
of competition on all sides lor the

recognize
*■

....

k°f
Sha™ f lon^w
^eoto TdenKSSiSfcTE
t° g.°.to who
ldcntify individuals and
families
ready, willing
are

population expansion and mobil¬
,
..
Market and cnnity, research by both private and trv to recognize the nature and consumer's dollar.
The record dna aDle 10 DU*' ^vlarKel an.a cony
recognize
"dlLfre a"a „unWc th„f thp huilHlna inrin«trv sumer research, however, is propublic
organizations leading to
lows
how
better products for peacetime as
dollar' and
mofe
of
[long will this
well as defense use, and rising
period of
lack
knowledge about funda- have failed to stimulate interest
Obsolescence, reflecting the ex¬ mental
(activity or
changes in building mar- in
better housing among the
When you stop to think about
panding tendency for new and kets. Let's consider each of these American public to the same ex- .
low growth
better goods and services to re¬
tent
last?
briefly
tent that many other industries Jl» common sense tells you that
that many
"
people tend to buy many products
place existing ones. The answer
v
,he roadhlocks to h.iild
have widened buyer interest in Pfopie lenu 10 ouy many proaucis
In-my judgment, economic
is to be found
of ma
their Products and services. The at par"cular /"If® durln»'heir
forces- will ' cause
the
"interior ing expansion, shortages ot ma- toughest ' competition
tou£rhest
often - is llves- Wouldn't it be wise, therecompetition
often
is llvesvvouiani
oe
tnerelargely in a
period" to persist for'a minimum
fhacross the street and down the fore> *? study wh.en families be[uick review
but
across the street and down the
of two years and it may continue
)f the factors
tSihSS
mnnfhQ
how
block in the form of aggressive, com? interested in housing and
for as long as five. This timing, of
'hich
have
ercr
shortages of
have merchandising-minded sellers of
course, may be altered by inter¬
caused a tap¬
FTrtuallv
many other types of consumer they are most likely to be in the
national developments or abrupt
f y
P
'
products and services, particularly mood.
ering off of
W. E. Hoaaiey, jr.
But labor shortages, particularly
changes in domestic political poli¬
automobiles, appliances, travel and
Here are some recent findings:
the tremencies. Those making plans for the among skilled craftsmen, includ—
forms of recreation
Most new homes are bought by
lous postwar boom.
.
flooring business, however, should ing resilient flooring mechanics,
industry people under 35 years of age' In"
First, the artificial backlogs of
not count on any new boom in continue to be reported in mimerterest ,n better an(J
lo.
demand, which arose out of de¬
general business until at least ous parts of the country. Research £" if
of each dollar spent bv cated housing i'ises sharply when
pression cut-backs, war shortages
must be intensified to find new
196°.
pnn51irnprB fnr nlt
nin-nncac
txtaII
the first child »«» school age.
child nears school age.
and postwar expansion, and which
as a smaller share
S1"aller
of each dollar Women are more floor conscious
Well, if the interim period is
have been gradually disappearing
,m°re
c™us
in recent years, have now come to going to be around for a while,
Fmon ,knFed spent by consumers for residential
young children
'
the
next question
logically is—
building and "fix-up" work than thanat any other time.
an end. New backlogs of demand
what are the principal character¬
"
■
live years ago. Many more billions
are unlikely unless another emer¬
^ do-it-yourself maiket is
You may recall that in Decernistics of the "interim period"?
Gf dollars have become available
crowded largely with men and
gency arises.
juestion i m iiately fol¬

—

consu^er°

(3)01some

SS&Mtt c^mpoFfn "groups

Y*™*

helpful clues One

gese involves the hie cycle of the

'^hoiteB«

oromiSenSy Cover th^ye^i'
X?19
ngFerials
dislnnearS

f°rG' t0 fstud^ fhen .famdies beT

resilient floors and sell them when

es:.lient ftooiiri„ industry
*
p„°±Ze?Stlr\all pm'pose?™ weS

differently!

Jhe

niudi

x.vvv

l°pmen(hare

fl°°r

when they have

Second, in most fields manufac¬

capacity

to five years.

Third,

the

>eriencing

formations

lindicate

now

current

'significant

ex-

estimates

rise

symp¬

until

Shortages

have

Without

leadership

Business

•

doubling efforts to produce more
efficiently but primary emphasis
dependent 'upon the current vol¬ Is
rapidly
shifting .to
selling.
ume of savings.
"Interim .period"
markets
no
Fifth, the worst of the
war
longer' have the, imager-—"I'll take
devastation has now been elim-" it" "at " almost any price"—buyers.
have
become
very
(mated,
so
that
little
further Customers
stimulus to world economic growth "choosy,"
for
a
very
obvious
:an
be expected
reason.
from postwar
They have no fear ' oT
reconstruction.
shortages. Actually, shortages are
All this does not mean that a now unacceptable and judged as a
j
serious economic.adjustment is in sign of poor service.

plans

and

[policies of business and govern-

All

►re

by Mr. Hoadley be-1

Tke

tars,

Afrmstronff Wholesale
Dec. 3, 1957. '

Distrib-

this

question

leads

which

squarely if
ress

•From an'address

the

market.

investors.

volume

resilient
we

flooring

know

tent

during

the

past

materials

good

sa]es

activity,

information

are

cur-

still

lack

are

what

wliv sales

re FFd w^at

they
velopments

While

deal about

^d dF-

trends

in prospect.

between the age of 25
' a time wben thfey want
need almost everything and
ka^o theii smallest financial re¬
w0.m^
a

Improved

sources.

NEEDS when the first child

for

levelling in demand

industry

ap-

35-55

ages

except

for

maintenance and repairs. Special-

Data

Here, then, is the third general
reason

and

Proaches teenage.
'
Ir}terest in housing tends to lag
during

Inadequate

housing

specifically more space and bathroorn facilities become acute

inadeauate

ized modernization projects such
as kitchens and bathrooms, however,

are

continually under

con-

new

homes -in T957

the past several
years. The decline in new homebuilding in 1957 can be traced
almost entirely 'to the non-comduring

each

ing products specifically

were

little opportunity or need to know about
changes in consumer preferences,

short supply, there

What the

was

consumer

wanted

was

must

we are

petitive interest rates of VA and
FHA mortgages. Looking to 1958,
slightly
more
construction ,and
mortgage credit will be available

'tfen^ent approaches#. .The do-ityourself market also, expands at
the same time. It seems to me that
these findings, p r o v i d e some
promising leads for selective sell-r

hold

another

faced

to make prog¬

What has happened to the

determined in practice' by what
was available. At the present time,
-Where people live also is found
however,
what
the
consumer to influence materially how they
wants and finds readily available spend their money. For example,
in 1957, This condition will is what sells and not much else.
suburban homes tends to buy sub-,
because

the

general

cline

the

easing

some

money

market,

credit

in
de-

demands

other

industries, more competitive
mortgage
rates,
and
continued
heavy amortization payments on
existing mortgages.*

growth

building industry, and

have

judgment,; rising costs
more
important than

been

tight money in limiting residential
building this past year. More and
more
prospective, home
buyers
have been priced out of the housing market. New home costs have
continued to edge forward while

sell

market

values

older

homes

large

started

slide.

the "interim

sell

into

even

unknown

the

period," to try
finest

markets

products
is

risk

product hnd better not be
Experience everywhere with "interim period" selling is rapidly convincing mariufacturers and dealers alike that
continuing detailed knowledge of
market needs and customer
preferences is the only reliable
guide to profitable sales growth.
the

offered at all.

in"

community

the

automobile

field

the

for decades, and has spread widely
to appliances, furniture, tires and

are,

their

characteristics,

and

where to find them.

Once the family income exceeds
$5,000, many interests such
as '
recreation, education, investments,
more recently even to soft-surface
gifts, contributions and savings—
flooring coverings. Solution , to not to mention taxes—siphon off
the trade-in problem in housing earnings from the more convenwould
definitely make possible tional
expenditures
for
food,
one to two hundred; thousand
or clothing
and important to all oi
common

NEW YORK 5,N. Y.

£ave finished grade school. The

key point here is that more high-

Jy educated people spend from

^wo .to tnree times as much on
bousing as the more poorly educated consumers.

cisely who the prospective buyers

mechanism

nation. The trade-in idea has been

Merrill Lynch, Pierce, Fenner & Beane

the central cities. In contrast,
rural households are buying a
smaller and smaller share of most
products.
v
.
While everyone knows that the
education of the average American is improving, many managements h^ve failed to realize that
20% of-the heads of all United
States households have now gone
1° college, 42% nave at least gradaated
^lgn school, and 81%

plex and competitive, it becomes
essential to determine more pre-

each

house

principal

Marketing Department

More specifically, nearly half of'

in addition to income. As the market target has become more com-

closely related problem is the
an inexpensive "trade-

absence of
it*

stantially more goods and services
than homes located elsewhere,

Economic siiicide. For, unless a all resilient flooring sales are
product has a very specific market made in the 27% of the nation's
in
which
there
are
potential homes which are in metropolitan
buyers who are known to want it, markets but outside the limits

The

tight and thus help materially
to shrink housing demand.

Offices in 112 Cities

real

70 PINE STREET

result
A great deal of research is curequity squeeze upon rently under way to determine
present home owners who com- just what is going on in America's
prise two-thirds or more of the changing markets. Much further
potential buyers for new homes, refinement is now being made in
Rising
costs
now
also
require sales forecasting by giving attenmore credit at a time when credit
tion to many buyer characteristics

have

levelling in demand
occurred for many types of

Yet,

years

knowledge of fundamental changes sideration^ profe^naL instalThe record shows that conyen- in our markets^jSp long as build-/preferred.
A revival
tional lenders financed-the sartfe. ing materials generally and floorinterest occurs when re,

during the "interim period."

rate of the

].jserL

two

than

Ithe offing. There are many under¬

longer-range

thn

re¬

s°pendingaas conFITmeFineoml

question, tight money has

mainder

margins now presents a
real challenge to managements.

tions of individuals and businesses

ing the

ai eas.

result, interest rates and related
building credit terms must now
be substantially competitive with
all other types of financing to attract
funds
from
lenders
and

Fourth, the financial accumula¬ .-Hprofit

lying elements of strength, includ¬

it has been in most

for
has

virtually

increasing attention and concern.
Maintaining—let alone increasing

the mid-1960's.

during the war years have been
largely put to use, so that sound
future expansion will be heavily

«,

_...

played an important part in limitdisappeared and surplus capacity ing new construction this year,
general money maiket no
is on all sides. Financial problems The
isolates construction and
which have been rare and quite- longer
credit
from
the
reunimportant are now attracting mortgage

low-point in family

and

period"

to find "interim

and

j.,

of "moderate money misery,

year

.fiave only to look around

toms.

nation

Characteristics

"Interim"

adequate
to meet foreseeable requirements
for existing goods lor at least two

turing

Problem

and

Solution

Whor,

^ ^

WaS

f^st ™e:nb?JJ®d bacSf.m 1954>
had ^ rnmd oon<litmias which
afte
.
hectic
vears^of
s

horfa

®
#2
FnrS Sp

LiHrntPri
I
5
tv!" g
fa}
^ W^° 8
? anting upon further immediate
a

■

Continued

on page

Volume

187

Number 5704

The Commercial and
Financial Chronicle

(13)

Most

men

and

women

ingot of carbon

would have

alloy steel. So

earthly

you may

use

for

requires billions of dollars' worth of equipment, the skills

not have the

of hundreds of thousands of

remotest idea of what steel costs.
-

Actually, for all of these steels that it ships, United

States Steel gets
than

dime still

V.V'AWI awIY,'

an average

buys

quate depreciation allowances,

ient

cheaper

plants which
semble steel

thousands

process,

use,

supplies it in hundreds of
forms,

pound. Less

have

conven¬

individual

fabricate and

as¬

products for sale. However,

■H

-I

many parts

raw

of the world

form touches your life every day,

think you'll be interested in what U. S. Steel is

keep steel the cheapest of all

spent three and one-half billion dollars

IN LABORATORIES

since 1945

search center at

Modernization

improvement of facilities.

in the Chicago
and Pittsburgh districts and in the West
will soon increase
steel-making capacity

even

cost

factors.

programs

than two million ingot tons.

product that is mostly steel, the

the

steel is

one

An unusual order

the smallest

for steel

was

this plate mill roll, the world's
largest,
forged and machined at Homestead Works.

making today's
There, too, we
.

at U. S. Steel's

new re¬

Monroeville, Pa.,

we are

steel

UNITED STATES STEEL HOUR

better

value.

are developing steel to
withstand heat from atmospheric friction
no
other metal can, for supersonic

THE NEED

for low-cost steel will grow. It
anticipated that by 1975 there will be

ten million

families than there

today. Studies indicate the nation
then

are

will

require 50 million additional tons of

I
Watch THE

and mountains of

common

doing

metals.

proving its facilities. In the face of mount-^
ing costs of new equipment and inade-

Steel

some

men

and prices at the lowest
possible level through increased operating
efficiency, U. S. Steel is continually im-

TO MAKE STEEL

of 7% cents

gathered from

Since steel in

commodity whose manufacture

TO HOLD COSTS
...

materials

television. See your local newspaper for time and station.

flight of the future. A long-range program
is aimed at developing a metal twice as
as any now existing. Here, research
men are shown studying
creep rupture in

■strong

the development of new steel
Alloys re¬
quired for other high-temperature service.

steel

capacity, and U.'S. Steel expects to
provide its share. Looking far ahead, U. S.

Steel

developing

new

sources

materials to supplement old
ore-boat

unloaders

East

ones.

raw

Above:

Coast

mill;

The Commercial unci Financial Chronicle

Mortgages

ing

Research
Association of America

Life Insurance

■

erhphasis
months.

capital spending decline is pictured by

anteed

field

ber

and

major

lile

reason

free to reflect basic forces of cap-

minimize

question might be asked as
to why djSCOunts on Governmentinsufed and guaranteed mortgages
are
n0£ a satisfactory device for

risk they

well

diversified

investment

(?*7ka

ized $750

edd

1 94 7 the
insurance

had

lion,

double the

nearly

companies

f.omDanips

fpx

discounts

a ?

thA ™

the lower the net

cost o£ insurance to

passed

were

estate

real

mortgages. Thus, real estate mortgagesconstituted 16.8% of assets.
This figure is low historically; in
1940

mortgages

19.4%

were

difference

„p"

During the Dast eighteen months

fnl927 Evei since 1947 tL^o" Peri°dS ,°,£ ^ ^ay ^ m°rt"
Lcig
lit? the pio- gages, the life insurance com1927.
since

portion of real estate mortgages
in
life company assets has been

fo«d,.1Jr ?nc£e?f ng' A4thefndo£
19o6 their holdings of mortgages

of assets.-

Gnrw

billion, or 34.4%
of total assets of $96 billion, Accordingly, in the past ten years
the life companies have increased

«steadily rising

been

amounted to $33

T956, du:ring th<e

not

aiingness

purchase

|a|e

increased

loans

jjf

VA Tort' «
fromVi ^
m

million at the end of

1947 to $7.3.

billion at the

1956.

end of

Hold-

ings of FHA loans increased from

$1.4 billion in 1947 to $6.8 billion
in 1956'. Holdings of conventional
bvnvcuuuiidi
residential
mortgages
increased
from $4 billion in 1947 to $10 bil^fuui.out

lion in 1956.

xxuiui.,M

pany investment

the

are

merely

net

increase

Drodieious boom in nlant

^pmentExpenditures3 fall.^ff
«9uipment expenditures fall off

reasoning annlies

except that at

next year there will be an o'ffsetyear there wlU b,e a." ?££set"
ting increase 111 residential concornnSltlve^vh^tlm re- stl'uction- Secondly, there is en¬
;°n onother^Investnrnnts 5 ;i '' dence that consumer spending, is
™
mvesimenis.,,
on the rise and f expect that mThus, the basic reason for a shift, creased spending for durable con-

"resent

;be

time

'"J, a;,'1 "I?thev

relatively

with

are

closer

^waJWSv

papi.es awa^lrom yA ana rnA tT
slack.

figures

"the "sS-

^011

'eight

mnrteaees"in

llion Of FHA

<=»—

Tllis situatio11 is- bound to persist
has created
Th»
in a dynamic national economy-;
AI1C
tin/lor n\
eta
suuduon. xne such as ours under circumstances
gl\ k Fed^al Reserv^ in which the interest rate on Gov-

iipH

ciinl-»

rmim

Alive

nr»Pc

first ei^ht months af 1956.„the f0rceS

a^nired $11

companies

These

holdings of mortiU-

work

themselves

out

Lnerallv recognized

instability in

in the market place. The life in- the supply of funds for Govern-

with tlie lower am°unt of $674

miltem in the first

surance business,

which has such

ment-insured mortgages cannot be

"untir~the"Vonti'act^rate onthese mortgages is truly free and

big stake in the stability of the ",'X.Td

eighi^aTPuteiS doll.ar> ^m'.1"?,8 ,tbe S,°"rag? and

results from

amorti-

prepayments of" mort-

The

gross

acquisitions

mortgages by life companies
-I

of
are
,

onnnioHmnci

rpi_ilc,

nn^

^v-p "\t a

The

point to be stressed is 4H.4
I. that

L T^^Todav"^ It

been for the past

0/;'h"VX,HemanTTnT ranitai um"

ttwa

mf'a" is

}"ontheil' e"°rtS t0

the totsl demsncl tor cdpitBi

has

several years.
.

1947-1956

nearly

$47

billion

real

estate

mortgages, of.'l types.' Of this
total, $35 billion were residential
VA,

$10

billion

FHA,

e^tr^mely well. Moieovei, as we
know, acquisitions of mort^ages by life insurance companies

market forces but others are the prospects for life insurwere rjgfd Gr Sluggish.
Generally ance company investment in real
Speaking> the interest fates on estate mortgages? I am inclined

mentf^The'rate ofnew
lrio rate ot new

pvhihtfprJ thp highest decree of re—

ments.

$15.6 billion conventional.'In the
..

residential

the

mortgage

past year,

♦An

Annual

credit in.

I expect that

address

Meeting

ol the

tion of Real

commit-

commit

Dr.

O'Leary

National

Estate Boards,

you

reduced

arf
reasons
interest

the

for this

by hfe insurance

companies

and
one-half in mortgages, primarily
"

the

past year

^8^x^d a|l

faa^~

?n IhP ttpnJj

rpvpr«ai

give

business and industrial loans have to think"because there are cood
they are becoming
hri^htpr

^bsfveednSs%h0lgma^
sharpest inbaVe thus shown the
crease.

the

rates

lower levels.

There

are

to an-

good reasons
-

tlcipateoft: a trend may .-e 911
we similar to
verge

lieve,

however,

the

I do not be¬

half of 1953.

second

...

that the shift by

i R

•

pronounced as it was in 1953.
» <=ou!d easily mean, nonetheless,
a stepup in housing starts next
or as
,.oor

-i .1

rnillinn units

other

residential

hand,

the

mortgages

reasons to

life

mortgages.

have been much more sluggish
and

unresponsive to forces in the

overaU captol
The

course,

believe thai next year

companies will tend to intheir allocation of funds to

crease

certain, to - be : placed. on
FHA-. F(^ JJ^1S realf1on R ls 1.m"
Perative to thoroughly^ reexamine
the FHA program and to be cer-

seems

tain tha/ R flow 01 -fSndTwhfch
handle the
iunds wnicn.
seems likely to; come into this
field. The greatest nepd foi re
examination Js_ p5r^aps

rental housing area.

why life companies shifted

the emphasis of

their investments

...

The

conclusions I reach

of away from mortgages in the past
been the rigidity of the eighteen months has been the tre-

(1)

amount

Asspfc:?«u

4u'

breather

trend?

„

proportion

before

of
^

•

resuming

the

During the decade since the
.

interest rate on Government-in- mendous demand for capital funds war the
sured and guaranteed mortgages, by business and industry and the"^avL
sinrp

are

foh0ws*

primary difficulty has,

111

Conclusions

j indicated earlier, the basic
reason

life insurance coinP

°
d
increasfnfflv
greater llfe company in nhcnlnto VA mnrtfXacfps since mid-1953 has sharp advance-ofsigns now rates ' lnvesimeiil uutict, with
investment VA mortgages rate mid-1953 has in this: nrpa All siffns now indiThe unchanged
of 4>A% on
interest mdlcmtlet
in
mortEraffPS
wiiu
mortgages, hnth
both
absolute
this area. All

Associa¬

Chicago.

even

and

light of all the talk about scarcity

tlllS

mortgages, consisting of $9.4 billion

vest a iarger proportion of their
funds in real estate mortgages,
particularly in FHA mortgages.

° defined sharolv funds rose in the past eighteen What Are the Prospectsin Real
for Life J With the demise of• the VA
•
funds rose in
Insurance Investment
yu?lt;£ages nave aecimea sna piy months interest rates were driven
inWc
Estate Mortgages?
program, a much greater burden

the life

insurance companies acquired

uiau

?!"?•

better^meaaure °f their mentsloans, especially VA and
to make residential mortthis field. Duung the ^agb

10-year period

LAptL u

I a lllKZL

Llkewlse> total acquisi- wlsdom which the Federal Re- fiPvjhlp to move in resbonse to
tmns of/onventionM non-farm ?erve authorities have d^P^yed market forces. As F see it, this
of 195'•

Against this background,-what
and

activity

in demand for capital funds by
business and industry will cause
life insurance companies to in-

ri«•

was

showing

,-.^4

folios which

g°°dS ^ h6lP t3k6 "P '

tneZ fhe capital markets
sdendine bv mortgages has been the more tavSo far as

npi

uuiiuuci-

portfolios.

fVizvxr

-i

same

perhaps

entering a

1Qd7

«,S,?T!h°W thtC St6ad^ ^nths^f 19^6 amou^Vd'to $2,374
fil types in life insimance ^com- miIlion' in the
as compared with $2'132
million
period in 1957.

gages.

build
mventories.
Agal"s' 4hese ml""s s,g"s lnth<r
general business picture, I expect
there wl11 be tw0 major offsetting
f0rc,e3 "ext year For one I am

dis-'

fu^ ^mp
ind
1^57 thf total
S®Pha mStSaaS1 acauifed
Roardhas. not been the.cause of ernment, insured mortgages is
Yuf this situations-it has merely acted fixed at some arbitrary level not
ZdZClU°t
Sf
1"
d-'?"d a"d Ji1'pp,y in ljne with market forces As is

Holdings of commercial and industrial mortgages increased from about $1 5 billion in
$1.5
1947 to $6.4 billion in 1956.
xxx

zation

loans^HoldiMs'of

tfndoe-

seem

'° ? kfavy dem»nd ioi capital mortgages. The pattern has* un- vestors plus a continued large de£""ds.,by b"fortunately been one of feast 01; mand for funds from business and
holding bP 8?tog through a p^M of reduced both through the issuance of bonds
^1^.t^ScaH StJy'puWic utiUties state and
and others,
ehJyg*^ts, a:
shortage of funds in the second i
X

net

in the ex¬

phase in which business concerns
are moving to reduce rather than

much

make

favorable experience

past few years

now

because of the general

gage

1; enteral

but this situation
seems now to be changing toward
a decline in exports.
For another,

abuse
.

which

the

tadtlfrS o^ble. investment returns^ else-, a whoie are concerned, I do not
proportion
It reached d mxikthis wh?re' ^hls,-ls "°t 'he first time anticipate any material
easing
yea^at an annual rate of $38 bil SUC a sltuatl°n has occurred. We next year. The present heavy tor^ear aT an an".uai raie™ D.n" have experienced periodic curtail- ward commitment position of life"
10n'
we a" kn0^'tbls has £ed ment of funds for VA and FHA durance companies and other in-

f„nrT-

Q°espl friltbe

a"S |JUL

panies have persistently built up
their holdings and mortgages have

.tin „ther

market,

port

iast s&sion

the

5° ra'/mortMges

yields are obtainable.

mortgages.

iimitation

tn nan The same

lets where the highest investment

one

thp

zzlconfident that to the v.aw«»v vno.
morf£fa£?ps excent at Dar or close
41101 4" "1V extent busi-

investment, return
favorable investment returh

than

picture clearly seems to be
greatly increased interest
Despite temporary

The

seems

spending

i-pWo+ph

lelegated to the

had

the

d een

subject to

did

Congress

petition among life insurance
urge to obtain a

1953 companies is the

look at the trends for the

®istj

policyholders.

One of the elements of keen com-

competitors.
Consequently,
past decade, therefore, what ila-^ssuming equal freedom from unthey tell us about the prospects due risk, and with due regard to
for life insurance company invest- diversification life insurance comment in real estate mortgages?
pany funds tend to flow into out-

billion

have

rate of return

figure.

James J. O'Leary

„

How-

space

Federal

rS^SSfin

that .deep

concerned

are

$51.7 billion
Of Which $8.7

are

aro

the obligation as

have

total assets of

market

that

n ,

...

™

discounts are required insurance
to adjust
vieMs
So far as life

principal, however, life insurance

ported that in 1953
t
hiicmocc
million of business and
industrial mortgage loans.
This
total increased steadily until in
1956 the aggregate was 31.3 bil-

compan1

VA mortgages is so fal. out,ot.

j|ne

travelling

inevitable

J
ui«
Ir suy)-'eci. lo a°use
ODiiganon as and public and Congressional misrecentlv re- tr.u?ee.s t0 ??fk
0ot return the understanding withdrawdecision is
b,1 a/ n on inevitably to that the from thp
recenuy re
highest possible rate
they author- invGstments for thp higher the ^
} w-Alr? lrom \ne
investments, 101 tne nigner .me VA market. With life companies

asslts
assets

company

alternative investments. The
answer is of course, that theratfc

the element of safety of

Beyond

activity.

?ZZl

dampening ef-

Business

tC°"!

adjusting yields on these; mortgages and thus keeping them competitive with the rate of return

mtjst not only select their indi-

companies

insurance

comuan v

pected to exert

-p^e

savings entrusted

the

be under-less tension. For one
thing, there has; been much talk
about a reduction in Federal
spending, which has been exfeet

are

companies

have developed some excess plant
capacity for the time being in
some of our heavy goods industries. This should mean a slackening in the demand for capital
funds by business and industry. 1.
Moreover, there are additional
factors which, suggest that next
year the national economy may

ital market demand and supply.

yidual investments carefully but
they also are obliged to strive foi

life

The

various

n^tfnc?
portance

companies

been directed more and more into
conventional residential and business mortgages in which the rate
of return has been flexible and

undue risk.

HavW ahoof three-miarters of all

is
that the investment
these mortgages have
pace
with the return

and

icyholders.
they have the responsibility to invest these _funds
safely without the assumption of

innrnncintTim

life

guar-

and VA mortgages to the securities of business and industry. The
funds placed in mortgages have

insured

As trustees

trend in.
mortgage financing. Alaigenumindication

tional

invest-

McGraw-Hill and the National Industrial Conference Board
merce,

favorable yields on alternative investments, life insurance
companies were required as

with them by their po

orovMe
Representatives piovide an

assuiance

the

have seen, the de-

insurance

trustees

rate,

by the SEC—Department of Com-

Despite

trustees to shift the emphasis of
their investments away from FHA

mortgages.

Life

FHA

mTaddi* and
P°«;tfoIio.of securities of all kinds
addi
types of mortgages.

ilo'rifn^that
that
of

which life companies can earn on
alternative investments.

the record of

ment

will

the

from mortgages
past eighteen

primarily
yields on
not
kept

company

this

the

Government

will
find these figures rather
invest- startling.
ments in real estate rportgages in
Some recent data which we have
the past decade will, I am cerobtained for the Select Committee
insurance

think

cline has in the main centered in

O'Leary who does not

brief review of

life

5
in

Thursday, January 2, 1953>

story here has been too little and indicate a moderate decline next
too late.
,
year in industrial plant and equipThus, in the face of increasingly ment spending.
There" seems to

appraise the pros-

away

somewhat

contemplate any material easing
in the capital markets as a whole. Commenting on the still
overall historically low ratio of mortgages to life insurance
assets, despite steady total growth which has offset drops in
VA and FHA mortgages in paVt eighteen months, the insurance
economist expects over the longer-run a further increase in the
ratio of mortgages. Counterbalancing the minus signs in the
business picture, the author is confident residential construc¬
tion and consumer spending will help overcome the slack and,
in passing, queries possibilities in FHA.
Dr.

months,

5J/2 %.

helpful to review the reasons why
life companies have shifted their

D-".*A"-v*j

Brighter forthcoming prospects for a somewhat larger flow of
life insurance funds into real estate mortgages due to expected
business and industry

pects for life insurance company
investment in mortgages in com-

JAMES J. O'LEARY*

By DR.

Director of Investment

order

available to in-

increases

18 Months

Past

are

vestors

Away From Mortgages in the

Life Insurance. Investments
In Real Estate

dustrial bonds

Shift in Emphasis

Reasons for the
arts

...

attractive

mortgages
mungagca
•
,Qd7

occofc

of cate that expenditures for plant "sing from 16.8« ot a
and equipment by industrial con- to
in i»ao.
cerns are levelling out and are
(2) Due to the inflexibility of
bonds are being offered to yield likely to decline.
All of the interest rates in Government-inat least 4%% and high-grade in- surveys-conducted on this subject sured and guaranted mortgages,

rendered

completely

out

touch with capital market realities in which Aaa public utility

Volume

187

Number

5704

The Commercial and Financial Chronicfe

(15)
and

the

heavy demand for funds

Company Expects 9% Cut
In Business Activity

and
industry, there
sharp reduction in life
investment in VA and

company
FHA mortgages

eighteen

months.

has been offset to-

greater

the

past

However, this
a large
degree

flow

into

funds

conventional residential an^ busi¬

mortgages where rates' have

ness,

been competitive.

(3)

Life

insurance

It is difficult to reach
sion

conclu¬

year,

to where business and the

market

might be at any time dur¬
ing 1958, according to a year-end
analysis by Bache & Co. Politi¬
cally, the nation is faced with an
international dilemma which does

companies
have built organizations to make
mortgage loans, and consequently

other than through the joint effort

they

will

continue

active

the

mortgage field.
(4) Next year there is a good
prospect that life insurance com¬
panies will direct a somewhat

larger

flow

into

funds

not

seem

to lend itself to solution

building up strong allies —
strong both economically and mil¬
itarily—in

order

ing by business and industry.

curve,

for

the

longer run, I
rather expect that in the next few
years

witness

shall

increase in

solution

this

the

which

take

different

declining
has

business
been

now

spending,

Budgets

This will

larger

all

over-all

mar¬

look

Co.

believes

that

earn¬

actions

many

pay

out only

able percentage of their

thus

building

mean

tinuation

likelihood,

Weighing
leads

all

the

levels

Jones

Bache

earnings,

around

decline of

these

will

October-November

for

the

state

about

7-9%

ness activity
is a reasonable ex¬
pectation, the firm said.
Such a

ent

will
on

groups

ing

have

the

unfavorable operating

comparisons, particularly in view
of the high level of economic ac¬
tivity in early 1957, price earn¬

in busi¬

widely diverse
earnings of differ¬

ratios

may

of industries and dif¬

individual

below

normal

year-end.
flux

the

The

events

CHICAGO, 111.—Jack M. Tuhey
has become connected with Bache
& Co., 140 South Dearborn Street.

the

proportion of life
insurance company assets invested
in mortgages. The overall ratio of
mortgages
assets

total life

insurance

still

relatively low his¬
torically, especially in view of the
fact that
a
large proportion of
these mortgages are Governmentguaranteed or insured.

Dr. Pico President of

Govt.

Develop. Bank

Dr. Rafael Pico has been elected
President of the

Government De¬

velopment Bank for Puerto Rico
by the board of directors, it has
been

an-

nounced.

Pico has

the

been

Secretary

Treasury

of Puerto Rico

since 1955 and

prior

that

Chairman

was

Puerto

the

Rico Planning

Chair-

Board,

the

man

bb&rd

di¬

rectors of the
'

Government
Dr.

Development
B

Puerto

since

Pico

1953, Dr.

Guillerrno

Rodriguez,
Sep¬
who resigned effec¬

President of the
tember

Pico

Rico

succeeds

1953,

tive Jan.

Rafael

Bank since

1958.

A graduate of

the University of

Puerto Rico with high honors, Dr.
Pico

economics.

majored

also holds M.A. and PH.D. degrees

economic

geography

from

Clark University, Worcester, Mass.
He

Coordinator

was

Point

activities in Puerto Rico from 1950
to

1954.
Dr.

Pico

President

was

American Society of
that

the

Planning Of¬

ficials in 1949-51 and is
of

director

He
was
Alternate United States Delegate,
First

organization.

Extraordinary

Social Council,

telephone system permits growing businesses

"let out" their telephone

Session,

Economic

Inter-American

New

and

facilities without

Washington, D. C.,

having to get

whole

"suit of clothes"

new

in 1950.
Dr.

first

Pico, in 1956, was elected
president of the Inter-Amer-

jican

Planning

sisted

Society.

as¬

principal advisor to the
Delegation, Organi¬
zation,, of American States Eco¬
nomic Conference in August, 195-7
as

United States

Buenos

Aires.

Bell

The

service

(Special to The Financial Chronicle)

LOUISVILLE, Ky.
has

The

been

—

simple and flexible dial
grows

the

find

days when

by telephone,

much

many

business

companies

themselves faced with overloaded

communications systems.

Bond

the

Co.,

Inc., Kentucky Home Life Build¬
ing.

dial

Michigan

(Special to The Financial Chronicle)

developed

Sys¬

"packaged" type of

telephone system that takes up little
and is quickly and easily installed.

The

new

equipment, known

pact that it

the

756A7fol telephone system, is so com¬

can

office space.

be located in general

Equipment cabinets
The dial
stalled

into

arc

our

lively interest in matching

telephone service

real saving!

customers'

use

of plugs, much the

washing machine is plugged

electrical outlet. Businesses that
new

system and

mi.
grow to more

telephones

in most

phones by

can

many as

expand

simple change in existing
Modular

biggest jobs is helping
grow. This is another ex¬

our

businesses to

'<"X<

60 tele¬

equipment.
One of

MWt'4W

than 40 office
cases

plified
and

Pushbutton

operation,

occupies little

Key Console provides sim¬

saves
space.

automatically.

DETROIT, Mich.—John R. Tay¬

Midwest Stock Exchanges.

our

soundproofed.

lor has joined the staff of First of

Michigan Corporation, Buhl Build¬
ing, members of the Detroit and

always expanding needs.

switching unit is easily in¬

by the

same as a

ample of

At today's rentals, this

compactness represents

have this

To meet this situation, the Bell
tem lias

space

Joins First

telephone

Roger W.

added

Bankers

modern

telephone system that

In these

.With Bankers Bond Co.

staff

...

business grows.

is done

Puckett

System brings out another

improvement

Working together to bring people together

...

BELL

TELEPHONE

world

examine

and

further

present

entire

imperative to

Bache Adds to Staff

stocks

drop to
by a

(Special to The Financial Chronicle)

historical

levels, according to Bache.

Average,
a

followed

developments
throughout 1958 as they unfold irx
determining investment policy.

early 1958 when the accent
be

expects

365-330

rally to around the 465-475 level

con¬

dividend

all

factors

Industrial

Co.

makes

conclusion that from

Washington, to be fol¬

Fitting this forecast to the

disbursements in the face of tem¬

financing.

Dow

com¬

the kind of bal¬

favorable

would

year.

reason¬

sheets that will permit

ance

Federal

firm

lowed by rising prices later in the

This follows because it has
the practice of

been

the

irregularly*

lower
early in 1958 with tem¬
porary
rallies
touched
off
by
Congressional and Administrative

dends.

panies to

market

than divi¬

basis,

for

porarily declining earnings.

deficit

effects

parent since the early part of this

and,

ings will decline

allies,

decline

ap¬

Bache

much

increased armaments and
increased aid to our foreign

those

require
study of individual components
in
the
economy.
On
balance,

the

Bache & Co. said.

within

even

the

•

could easily take on
precipitous aspect.

companies

groups. A study of the stock
ket will more than ever

moment, the scales are
weighted heavily in the direction

approach

should

(5)

able

real

direction,

because

the

problem

mortgages

«•

withstand Soviet aggression. If the

expected decline in capital spend¬

estate

ferent

Bache &

business

has been

SYSTEM

time,

speeds

service,

All calls disconnect

Chronicle

The Commercial and Financial
16

19o8

Thursday. January 2,

(16)

plans for such reflationary deficitfinancing, and he is only too keen

in 1958

Britain's Prospects
PAUL EINZIG

marked

expects
inflation

sees

major slump

By DR. SIDNEY E. ROLFE

The
number of

credit

squeeze

American

country into
foundation whatever

credit, pre¬
expansion of credit exceeding
the output of durable goods; as was true in the U. S. from
1920-1955. Underscores the Study's finding of the indispensa-

dicts

in the facts

the
be judged

present situation or in

of the

prospects as they can
at the turn of the year.

At the turn of ceeding unabated since the war. witness a
Public's Growing Awareness
Britain's economic pros¬
Giltedged market, as and when
Another encouraging sign is that inflation will come to a halt and
pects appear to be rather more fa¬
vorable than could reasonably be British public opinion is at long as a result of the reduction
of
hoped for a last beginning to awaken to the the Bank rate. On the other hand
few
months obvious fact that inflation. has the outlook
for equities
is far
ago.
A major been due to three causes—wages, from satisfactory. The resistance
crisis through more wages, and still more wages. to
inflation
is bound
to entail
an accentuaUntil
recently
hardly anybody declines in profits and cuts in
tion of the dared to whisper about the extent
dividends, and this will induce
of the responsibility of the trade
flight from
many
investors to switch back
the pound no unions for the rise in the cost of into Government loans. There is
longer
seems living. Most economists, instead of no, cause for fearing,. however, a
to
be
immi- enlightening the public, were en¬
major
slump
on
the
Stock
n e n t.
T h e gaged in an' effort to outsmart Exchange.
;
LONDON,

Europe wilt experience

credit

it has

that the

tention

has

loans
come

The
PatU

Einziff

Union

forward

unreasonable

last

Trade

their

shows

determination
inflation. The

signs of

some

resist the

selfishness

■labor.

demands.;

wage

Government

the

And

sighted

wage

is now

hope that before long the masses
of
consumers
will know where
the blame lies for the rising cost

Certainly one development in
U. S. has been first is
the system
of mass production,
mass
distribution, and mass ■ fi¬
nancing of
goods, and
particularly

opportunity

possible, therefore, to view
prospects of checking infla¬

It is

pessimism, very few people really

the

believe in the likelihood of

tion

ma¬

with

1958

guarded

some

The next question is
whether the pendulum will not
Sterling's prospects have im¬
swing into the opposite direction,
proved since the increase of the
rate

Bank

7%.

rate cannot

But

the

1958.

Bank

be kept

at such high
level forever. The question is, will
it be

possible during the next\12

months to defend sterling without

having to keep interest rates at
crisis-level, or without having to
restore them to such an abnormal

level

after

autumn

the

temporary reduction early in the
New Year? The answer depends
on
the Government's success in

arresting domestic inflation. Once
the wage

spiral is broken it will
be possible to defend sterling with
a

Bank rate of 5% or lower.
The

optimism.

uncontrollable

de¬
place of
controllable inflation. To a large
extentv the answer to this ques¬
whether

and

will not take the

flation

tion lies outside the United King¬

Should

dom.

major'

slump

in the United States, or
should the decline in commodity
develop

prices become accentuated, Britain
would be unable to isolate itself
such

from

the

major trend.

the

and

major danger is still inflation
not
deflation.
The
official

monetary policy does not aim

at
activity
through credit squeeze," it merely
major strike, however, early in aims at preventing an expansion,
the New Year, and its outcome in so far as this could only be
will go a long way towards in¬ achieved at the cost of a further
dicating the prospects. Should the rise in prices. There are bound
strikers have their way to a note¬ to be pockets of unemployment in
worthy extent, the outlook for connection with the changes in
sterling wottld be far from re¬ defense expenditure and" also in *
assuring. Id'that case even a 7% connection with cuts in public and
Bank rate would be no guarantee private
capital expenditure.
In
against a major sterling crisis in particular the building of houses

ing from the resistance to infla¬
tion have not so far materialized.

contraction

business

There is bound to be at least one

the

is bound to slow down as

autumn.

There is

however,

now

some

that

slight hope,
of' the

face

the

rents

increase

which

will

result

decontrolled

curtail

demand

for

housing accomodation.
The
unemployed in the building indus¬
to wage inflation by employers, try, the aircraft industry and pos¬
and trade unions may come to sibly in a few industries affected
their senses before it is too late. by a decline in exports to raw
producing countries is
Once the employers realize that material
the Government means business, likely to be easily absorbed, how¬
ever, even if this will necessitate
they will no longer grant wage

situation

changed

and

prospects
there will be increased resistance

increases
bare

light

assumption

the

that

they

able to add the increased costs to
their

prices. The deterioration of

the international economic outlook
as

result

modity
for

prices

the

fall

another

com¬

reason

employers to resist wage de¬

mands. Above

all, fears of

in the United

States, however ill-

founded,
go

some

down

are

slump

infectious, and should

way

towards

damping

in which the

spiral has

been

pro¬

make

for

mands

stand¬
living.

has

Jr.

Shearson,
South

208

Street.

workers to
occupations.
Nor

Deflation

If, contrary to expectations, the
deflationary trend should proceed
too far, the Government is well
in a position to reverse it.
Mr.
Macmillan is known to be longing
such opportunity that would

for

enable

him

ing
and
an

increase

his

Gov¬

effort

son,

has

Saracco

also

check

neces¬

to link

three

de¬

velopments,

produc¬

mass

tion, mass dis¬
tribution, and
Sidney Rolfe

each

out

one

could exist.

financ¬

mass

ing, for with¬
of the others

none

stool
—remove any one, the stool
col¬
lapses. Mass production, particu¬
larly of consumer durable goods,

Mickle & Go. Inc. to

and

Be N. Y. S. E. Firm

the

components

steel,

will

increasingly

become

with

East,

the

insistent

far-

which I
The coming

reJching

consequences

not spell out.
development of a common mar¬

need

and

ket

trade

free

With

revolution.

common

will

area

consumption

enhance the

further

mar¬

mass
production,
and lowered unit cost, will for the

genuine

ket,

possible in Europe.
will add fuel to
living standards.
consumer
revolution

time

first

This development

the fire of rising
the

But

The system has been

compared to a three-legged

Hammill & Co.

by itself. It is paft
encompassing revolu¬

does not stand
of

expectations,

rising

tion

demand

the

franchised

part

for

masses

the

the en¬
a
better

Rising consumption is .one
tools, and so on, has life.
given the U.
S. its industrial aspect: with that goes rising in¬
vestments. Added to the demands
HOUSTON, Tex. — Mickle & power.
At the same time,
as
Company, Inc., Bank of the South¬ goods could be more broadly pro¬ for social welfare we see every¬
west Building, on Jan. .9 will be¬
duced, the cost per unit of goods where and the need for arma¬
come a member of the New York
has fallen, and higher wages have ments in a restless world, the re¬
Stock Exchange.
Officers will been paid to the workers, and this sult in the U. S. and throughout
be John C. Mickle, President and has made for an
ever-rising stand¬ the West has been inflation. Not
inflation in the vicious sense you
Treasurer; Edward Gordon Hook¬ ard of living.
saw it in
the 1920's, but a steady
er, member of the Exchange, Ex¬
In this system, mass financing—
ecutive
Vice-President
and
S.
persistent gnawing inflation.
the widespread, almost universal
Willets Meyer, Secretary.
Every country is faced with the
use
of
instalment
credit
has
problem of inflation, and
each
played an indispensable part. The
country will deal with it in its
use of instalment credit, however,
own
ways.
But there is one as¬
means the use of money and cred¬
pect of this inflationary period
it.
And in the U. S., as in all
which I believe affects us all, and
Western nations, the chief mecha¬
which 1 would like to mention.
nism
of adjustment
the central
Harry W. Faath, Jr., has joined
This is the - period of rapidly
government or central bank has
the municipal securities depart¬
rising consumption, perhaps the
ment of The Marine Trust Com¬ over the speed and direction of
economic development is a mone¬ consumption revolution. There is
pany of Western New York in the
everywhere a desire to solve the
bank's New Vork City office, 120 tary control. This has brought in¬
inflation problem first, too often
stalment credit use into occasional
Broadway. He was formerly with
without thinking of alternatives,
conflict with some of thel other
Braun, Bosworth & Co., Incor¬
by cracking down on consumption
porated andh before that Aubrey goals of society. The fact that
by means of special controls or
money is involved in mass scale
G. Lanston & Co., Inc.
other devices which run against
study in
machine

H. W. Faalh, Jr. With

Mariae Tnisl Co.

has

Francis

Gallery to

Francis

Dec.
He

31,
took

which
more

Callery retired as a
Brothers on

announced.

1957, it was
this

action

order

himself entirely to the oil
business.
Mr. Callery will main¬

devote
tain

his

New

office

offices

Orleans
in

and

New

Houston

will

York

make

the

he, was Chancellor

slump.

of the

Exchequer he elaborated detailed

given rise to a
of the relationship be¬
instalment credit and the
S.

and

his

Lehman

Brothers.

would

Reilly Co.

We in America

JERSEY

CITY, N. J.—J. F. Reil¬

ly & Co., Inc., 1 Exchange Place,
members of the Skit Lake Stock

Exchange, announce that Eugene
J. Quinn has been elected a vicepresident and director of their
Scott

has

become

here, despite periodic upsets,
development similar to the U. S.
The remarkable growth of indus¬

potential, especially in Ger¬
many, has laid the groundwork
for a great growth in mass con¬

trial

Indeed,

march to

the

consumption is well under
in Western Europe.

march

with it

raises,

the

consumption,

ah&

problems

periodic

mass

Despite

production and mass

Nor

financing, cannot be stopped.
should
I

think

be, for we believe,

you

and

Lloyd J. Harty,
Jr., will be representaitve in Den¬
ver, Colo.
and

ing

standards

framework

peaceful,"and

living
for

are

the

happy,

democratic people.

deepr

prejudice against con¬

sumption,
especially some
one
else s
consumption.
This emo¬
tional reaction leads rational men
to

the
to

same

the

forecasts

their

emotions.

anal¬

and

present,

the

numbers,

set

blinded in

ysers

conclusions

opposite

come

from
and

their
their

future

pretend

not

anti-consumption
prejudice is so deep or wide¬
spread, but there are a few clues.
know

revolutions

All

alone

that

and

emotional

menacing
runs

and

forth

bring
But

con¬

particularly

many

unsettling,

are

can

reactions:

revolution

sumer

the

why

Europe,

in the

because it

the grain of our
beliefs. Schobled as we
been to think in terms of in¬
against

deepest
have

vestment,

which

con¬

countries

most

emotional

production

There

market philosophy.

free

exists

sion,

sumption, and that high and ris¬

best

will agree, that the

associated writh the firm's trading

department

have looked on

purpose

Comment

see

mass

Appointments

developments
in Europe,
since
1950 or so, with real pleasure, and
a
little pride.
For we think- we

way

Makes

extensively later.

sumption.

J. F.

system,

monetary

general

Lehman

tween

Enter Oil Business
partner

also

the

popularity by embark¬
firm.
policy of tax reductions
Richard
public spending in

increased

When

William

all

Mr.

been added to the staff of Shear-

sary

become associated
Hammill & Co.,

Salle

ard

("Special to The Financial Chronicle)

lips,

consumption. As consump¬
in the West, these de¬

rises

tion

higher

many

Neither Inflation

ernment's

the optimism

wage-price

transfer

after a
the lower-paid
would be

heartedly
resistance,

token

—

which

extent

trend
depends on domestic de¬
velopments, however, there is no
cause for pessimism. It seems that

the

aris¬

major wage disputes

umers'

demands

goods which

Company, Inc. of Davenport.

checking the rise in prices.
And notwithstanding the chorus of

jor economic depression in

the

cannot
escape
its peo{)le for

Europe

Eastern

durable

CHICAGO, 111.—Blair A. Phil¬
with

the history of

When

cons

Phillips Jr. With
Shearson, Hammill

ion

of public opin¬
then go a long way
towards influencing the attitude
of the Trade Unions.

Revolution"
this era is
written, it may well be known as
"the
consumption
revolution,"
perhaps even overshadowing in
importance the atomic age. Even
Consumption

"The

those

Blair

of living. Pressure
may

of European countries require ;

credit controls.

consumer

which the

Phillips was formerly with Baxter
& Company and in the past was
President of The White-Phillips

for

unionist

condemned, and there

fall in the prices of imported raw
materials provides an

organized

Fools'
Economics has come to

Paradise

press

wjih

ruthlessly

the

for

gradually common sense
appears to have come to prevail,
and there is more and more pub¬
lic
condemnation of the
short¬

signs

some

whether \to

hesitation

re-

sponsible
least

explanations

"original"
rise. But

reversed.
more

Trade

show at

leaders

be¬

export needs

••

Government

as a

Agrees that general rather than specific credit controls serve
best to enhance economic freedom and growth. Rebuts con¬

inventing tortuous

other

concomitant of mass production
of the basic strength of instalment
developed in the free economy of the U. S.

bility of mass financing
and distribution; as well

the year

each

the six-volume

expert, reviewing

credit

consumer

study of the Federal Reserve Board on consumer

might drive the_
deflation have no

expected to
marked recovery in the

from

bring that opportunity.

The coming year is

flight

York

Economist, C. I. T. Financial Corp., New

economists that the very moderate

outlook for equities.

far from satisfactory

anti-deflationary

pathological fears of a

the Stock Exchange-

will

in Gilt-edged markets as and when
halt and Bank rate is reduced; and—

to0 a

comes

conditions
change from anti-

policy. Unfortunately there seems
to be very little hope that
1958

recovery

though not fearing

economic

inflationary

preview

Prospects for Increased Use
Of Consumer Credit Abroad

practice if

them into

when

will warrant

of probable British economic developments is
sketched by distinguished economist-writer, Dr. Einzig is en¬
couraged by public's awakening to trade unions' "Fools Para¬
dise Economics"; doubts there will be any inflationary trend
to warrant employment of "reflationary deficit financing";

putting

and

the

took

growth,
place

our

that

the

focus.

science

expan¬

from the

18th

it difficult to

century on, we find
shift

developments

great

is significant

Continued

economics,
vaae 27

Volume

187

Number

5704

The Commercial and Financial Chronicle

(17)

American

THE MARKET... AND YOU
By

WALLACE

countries,

embroiled

stock

markers

trends

was

—

tradi¬

r»eiter

rally—one of
the

rather

com¬

plete fizzle as 1957 ground to
a
close, one of the heaviest
recent loads of tax-loss

selling

keeping the list subdued.

There

feeling
sile

Only -half

increased

spending
for

and they,
b

i rig

them

to,

to a.; floor

other hearten the general economy. ■times

V' dozen

mar-

appears

aggressive-

coming.

optimism

probably

1947, 1949 and
Building supply firms were 1953. But the line was broken
year-end slipped by without also high-rated, an upsurge in this time.
*„
1
the selling letting up toward home starts
seemingly in the
the end enough so that a
works. V/
;■' y-\'■"■■■ Interesting Chain-Store Issue
rally

some

arid

over

give it

ter

rea¬

for the

missing rally this
year.
Throughout December
the list was roughly handled
from

news

National Tea is

Electronic firms

It wasn't hard to find
sons

points of view

one

future

and

economy temrealization that

the

easily

growth.

Diversified
security positions,

balanced

severe

values,

be held but the
future

can

the

seem

most

actions,

forever

are
to
be
exto the extent
and speed

chosen to include issues
with tangible and calculable

odds

included

modestly,
se-

cent

/cur.ity trans-

were

high¬ neglected items in the soft
ly- regarded, in part because goods category, haying held
of their participation in mis¬ in about an
eight-point range
sile work. Road
building sup¬ for : all of .1957. When trie
ply firms were also /being stock market declined around
projected to above-average 20% from July to October, it
results this year tsince such stood its
ground far. better
work
is
rnounting steadily than most other items around

pected

inevitable.

•

could take

with

attitudes

;

easily forever."

adjustments m

will

seriously
tested, and

three

times in the last 30
years has

scruti¬

are

faith in the

nothing
comes
Disappointments

recent

something of
than

comes

pered

The

years

—

nothing

period the 44

less

realization that

nortantlE yearthe stock im- basic
opens, an
portant change in
ket

Inc.

compound of "basic faith in the
economy tempered with

the

farther to discount

even

Mutual/Fund,

in the current business
picture

by Mr. Popovic who advises investment
thinking should

seem

10 years. In that
line had proved

\ on -

them since

degree,

counted

nized

the issue
recently
slipped to its poorest price in

gov¬

shipments and better

to
outweigh the
bright spots, the market has

better

the aircraft-mis¬ gone

less: assured
year

would

much

division,

ernment

are
..

was

Important factors

profits. If the troubles

sugar

Reality

By MILAN D. POPOVIC

President, Blue Ridge

bright side are higher
prices for bananas, increased

tfeeiing /loout

over

1958: Return to

retro¬

the

/Defense Issues

seasonal

basis in Guatemala. On

overseas

Tne

tional year-end
the stronger of

and is
lawsuit • over

higher rail fares
active

STREETE

retically

profits of reshould be very

evaluated

many

instances,

theo-

can

expansion
prices only-

the

years

skeptically

the

are

and

easy

even:

one

man

another
jv

„.

Milan D. Popovic

■

buys,
sells;
right,

one.

t h

other

Smith, Barney & Co.}
:

the

stock

market is rising, the
automatically start favoring

odds

Admits Four Partners

But if

wrong.

Smith,

Barney

ments bankers,
New York

•

Co.,f invest¬

Broad

Street.

City, members of The
layoffs, steel cutbacks,
the man who buys. If the
buyer New York Stock
Exchange, have
inclines
to
carloading dips, trimmed and, as in some localities al¬ and was hovering near its also
fast-moving announced that Hugh
Knowlton,
earnings and rising unem¬ ready", * will be speeded even peak through the dreary trad¬ stocks, his profits will be further Jr., Andrew J. Melton, Jr., Robert
increased. In the last 10 years of
ployment streaming along more to take up the slack in ing leading to the year-end.
rising markets, this formula has
employment.
steadily. V .%; •
{
V-V-'
0t
"■
*
J!:
made fortunes for investors who
—auto

■

sjc

.*"V

iif

■

•

//The

were

mainly

inexperienced

and

however, has born optimists and
aggressive
had a good
earnings record buyers. In that period even ex¬
perienced
investors
/aridthrough an ambitious
gradually
for the most that the low for tions,
and
indications
that
program of new supermarket joined in the expectations of a
the
move
hasn't - yet
been more easing, too, would fol¬ additions and
never-ending rise..
acquisitions of
seen; And
against this back¬ low any large jump in unem¬ 'other
Apart from the market, what
regional chains has
are
the fundamentals
ground there was hardly any ployment, utilities are back in been able to show a
today?
It
sales gain
has been clear that we are
past
point to trying to participate favor both for their/tradi¬
every year since 1945.. Last the boom rate of
expansion.
Be¬
in a brief, final
trading flurry tionally defensive .nature and
cause -of
year's results are
'

Then, too, the market ana¬
lysts were in rare agreement

With the .first step already
taken to eaiser
money condi¬

company,

at the end of the year.'
:!:
'

*, #

Whereas 1956

expected to

because the

tight money' con¬
depressed some to
above-average values.,:

was

stand¬

show

off year,

*
*
the ^industrial aver¬
managing a modest and
Some
of
the
yields; - ap¬ year. Earnings have been esti¬
not
entirely conclusive ad¬ proached 6%, as ; in : United mated at well above double
vance, last year was a definite Gas
Corp., while others had the dividend requirement for
down year and the first since
been trimmed back two-fifths 1957. and
further improve¬

age

■

1953 when business

also from their
earlier, more optb ment likely, so the stock is
that Time mistic peaks/as with El Paso definitely a/ candidate for
the money Natural Gas.
dividend1 improvement- this
J

bit

some

loosened

were

market
snapped
back rather rapidly.

year/; the

;

tion

money

answer

1957

Strong Spot
Investment

;

thinking

was

still

the ques¬
trims, layoffs and mounting
easier talk of
a
recession. Toward

will turn the trick

the end of last
year there was
a
bit more stress on

savings

by consumers but no' indica¬
tions whatever of any drastic

the

beginning of 1957
general view was that curtailment

the

business would thrive for the
first

half

was

■

For the low-priced, highyield item Standard Financial
Corp. * is
an
above-average
value in the financing field.
It too, has suffered mostly
from
neglect and the 7%
yield available compares very
favorably with returns avail¬
able

from

the

better

whether

rapidly this time,

while

Hugh

Knowlton,

Jr.

Robert

Powers

investment in additional capacity
produce.
We now have to sit

back

and digest the tremendous
activity of the past expansive 10
years.

second

the

Stock
One

stock

in their
#

■ ->

known

financing issues. Earnings
have been moving higher
without fanfare and

jected to,
this

are

pro¬

higher, levels
The company's

even

year.

spending. latest dividend represented a
modest increase, second one
-,.
>

Market Function
the

market
on

After

Consumer Goods the

partial to The consumer
goods lines, as against a defi¬
The Money Rate Question
nite /antipathy
toward The
By contrast, the reins were capital goods! issues. So far
held tightly until
late last consumer spending has held
year and there wasn't suffi¬
high despite the workweek

cient time to

over¬

value

mid¬

market'turndown. When the
reins

and

was

ragged. At
tightening of
market had also preceded the
a

overbuilding

sales

jump to double producing, tightening of the belts
is now necessary and inevitable.
the 1950 level and the
figure This is shown in the fact
that
is .expected to reach the three
industrial production has been de¬
V%>. quarters of a billion level this clining for a year despite a record

ditions had

-fi

the

valuation
and

functions

this

place

economic

of
a

the

dollar

system.

last

was

depression, this
overly conservative

hardly put a fair price on the
As we proceeded into

Melton,

economy.

prosperity, the market began to
put a price not only on the pres¬
ent

but

distant future.

able to
future

and

the

It became fashion¬

project earnings into the
and

came

these

mostly
past growth.

projections be¬
plain extensions of

important factor in the
current picture is politics.
Many
the

moves

were

made in

past 20 years, but they were

often

accompanied by certain un¬
healthy by-products. Since it was
a
vigorous era, the adverse ef¬
fects were absorbed easily.
The.
public and their representatives
happily rode the wave of pros¬
perity. Now that there is some
slowing down, however, the load
is getting heavier.
The question

William

E. Fay, Jr.

Fay,

Melton and

Powers are with the
New York City office of the firm
and

Mr.

office.

Another

Jr.

and

Jr., have been admitted to general
partnership ih the firm, effective
Jan. 1, 1958.
Messrs. Knowlton,

;

constructive

Powers

Mr.

Fay
.

with

the

Chicago
...

Knowlton,

member of the

corporate buying department, hag
been with Smith,
Barney & Co.
since 1952. A graduate of
Harvard
Law
School, he .practiced law
prior to entering the investment
banking business.
Mr.

Melton

manager of the

1945.

national

sales

firm, he joined in

graduate of VillaWhere competi¬
nova
College.
companies sell well
Mr.
Powers,
associated
with
mark or a time of lower pro¬
the
line, Standard's
section is United Fruit which, above
Smith, Barney & Co. since 1945,
is manager of the
market price is close to the
duction, depending on how in recent
syndicate de¬
is
now
whether
there
will
be
years, has had to
partment. He is a Yale
University
enough common sense to fit the
optimistic the specific student put up with an uncommon lot $5.50 book value.
graduate.
.pace
to
our
present
economic
of troubles,
was.
It
\The views expressed in this
Mr. Fay, an alumnus of Brown
including an
proved remarkably
article do not necessarily at any strength. Being a practical nation, University and a member of
the
accurate.
1
/
•/ extraordinary series of storm: time coincide with those of the it can be expected that we shall firm's sales staff, has been with
losses last year that threaten
do the right thing again through
'
if.
if.
ifi
'
"Chronicle."
They are presented
Smith, Barney & Co. since 1946.
the process of trial and error. So
to pare
slightly the 1957 earn¬ as those of the author only.]
Currently there is a high
while the future may not be as ?
ings - from the T956
level.
class of unanimity that/the
exhilarating, as the past 10 years,
Mitchum, Jones Adds ■
Nevertheless, the dividend is
we.shall inevitably be again on
Mountain States Adds
(Special to The Financial Chronicle)
first half of 1958 will be a well covered and; in
another 'Uptrend. Looking back to
fact, the
"f (Social to The Financial Chronicle)
LOS ANGELES, Cal.—Edward
the starry eyed "New Era"-of the
period of lagging business but company's dividend record is
% DENVER, Colo.
Joseoh 20's,, it is well to remember that G. Gleitsman, Jr., has been added
that* the second half should a good ' one ./stretching ; back

either

question

item

thoroughly
in

the

depressed

consumer

goods

in two years.

tive

■

more
see

good

and that

upsurge

the stock market will have J/4
take

its '

cue

from

business

generally.

than

half /

acentury

without interruption..

/United Frilit is

.;'•/*
under

anti-trust'fire, has had to nut
up' with
threats 'in Latin

Caceiavillani,

J a c k C. Dahlin,
James H. Klein, James J.
Flood,
Marvin,E. Wahlstrom, Robert J.
Werner and Donald W.

have; been
Mountain

added

States

Woodring

the

staff

Securities

Cor¬

poration, Denver Club Building.

th,e things

pass;

soon

we expected then have

they just didn't come
Was then predicted.

On that basis, the stock

market

to the staff of Mitchum, Jones &

Templeton,

will probably lose its elation and

and

will start

changes.

facing realities. The in¬
vestment thinking should include

650

South

Spring

Street, members of the New York
Pacific

Fairman

Coast
was

& Co.

Stock

Ex¬

previously with

The Commercial and Financial Chronicle

(18)

Thursday, January 2, 1958

construction for. the-year-1957-are

Sixth Hunter Joins Marines

estimated at $4,825

Bank and Insurance Stocks

highway outlays in 1958 are likely
to be about 15%' above i957. -: 1

WALLACE

Insurance Stocks

—

«Average hourly wage rates in

manufacturing

it will be apparent
to
all followers of lire-casualty
insurance statistics that 1957 will
By this time

the worst years
have ex-

have been one of

'for underwriting that we

have been on the rise.
Kates are
perienced for a long time. The
established on the basis of the in¬
1956 chalked up bad enough
dustry's experience, over three to
^results, but the data on underwrit¬
five years.v T1 ie recent refusal of
ing that has. been issued recently
make 1957 appear to be really the New York State department to
bad. In fact, one of the arguments agree to rate increases on auto¬
mobile liability (which decision is
being advanced for rate increases
being taken to the coiu ts) was in
is that if matters get much worse*
part due to too short an experi¬
some of the smaller and less for¬
ence, according to published re¬
tified units could have their sur¬
plus funds seriously depleted. ports.
Another area in which a change
There begin to be indications from
could be effected by the compa¬
a few companies that fourth quar¬
nies themselves is in the practice
ter results of fire lines are show¬
of writing longer term policies at
ing improvement; and we now
a discount from the one-year pol¬
have several successive months in
.which fire loss figures have been icy rate; This had its inception as
a selling point for the agent; but
iri a favorable trend. If this ex¬
some ol: the discounts are sizable.
perience continues it could be that
More will be discussed about
it will constitute a turning point
rates in a later article; but indi¬
for underwriting in the fire-casu¬
cations continue to mount that
alty industry.
' ,
rate increases, particularly in cas¬
In the insurance business the
ualty lines, are beginning to show
investment adjunct pretty much
in the industry's news items.
It
goes its own way and over the
must be remembered that in¬
years shows a steady average per¬
creased rates are not reflected im¬
formance, with a moderate up¬
mediately after they are made.
ward trend.
In years of good
Policies already in force are not
security markets, the results of affected
by new rates until they
investment income are good, for
expire and are renewed.
Rate

"Corporation profits
will Be lower.

general
course,

security markets,
the reverse is true.

too much attention

And not

sooner

later

Ihe

whole

average

7 "Congress will raise the present
$275 billion limit on the Federal

'debt;?*^
"

Gross

National Product for the

1958 is likely to be slightly
higher than for 1957 in dollars,

year

Marine Corps is nothing
new to the Hunter family of Saugerties, N. Y.
Shown above is
Lawrence Hunter
being congratulated by Captain Robert J.
Hurley, Assistant Officer in Charge of Marine Corps Recruiting
in the New York-New Jersey area.
Looking on with pride and
approval is his father Wellington Hunter (Wellington Hunter
Associates, Jersey City, N. J ) (right) and Technical Sergeant
Winlord L. Stowell, Marine Corps Recruiter in Kingston, N. Y.
Lawrence is one of six sons to have joined the Corps. At present
Maurice Hunter is a Captain stationed at Norfolk, Va. Welling¬
ton, Jr., Reginald, Richard and Glenn Hunter have served in the
Marine Corps and are now back in civilian life.
7
*
Lawrence will now go on to Parris Island where he will
receive his basic instruction followed by further training at Camp
Lejeune, North Carolina. Frior to entering the Marines he at¬
tended Saugevties High School and was graduated in June, 1957.
When asked
why he decided to join the Marines Lawrence
answered, "Family Tradition."
tradition

The

of the United States

but

little
lower
in
physical
Probably the annual rate

terms.
for

fourth

the

quarter

1958,

after seasonal adjustment, will be
above that of the second quarter."

J. D. Howe, Partner
In F. W.

Craigie Co.

RICHMOND, Va. — Jack D.
Howe became a general partner
in F. W. Craigie & Company, 616
East Main St., on Jan. 1. The an¬

nouncement

was made by Walter
Craigie,^ senior partner of the

firm.
Howe is

Mr.

Business Outlook in Coming

Year

the

factors in the

Company's epitomization of six important
economic scene reveals Gross National Product

eral

America.

Bank

served

Lieutenant in the Army Air

Force
He

slightly higher than in 1957 but that the Fed¬
Reserve Board's index of production will average 2% or

in 1958 will be

car¬

native of Glen-

Calif. Prior to coming to
Richmond, he was associated with

dale,

Trust

Cleveland

comparatively few around the
country as yet. But these must
come

as a

77,7.■
will

in 1958 than in; 1957,and
bond prices will average higher. :

fire and allied lines are

rates

lower

boosts

"Interest

year

increase. In poor

percentagewise

rise will be less than during
1957:•>: V
the

dividend receipts

will show an up¬

in 1958, tout

trend

readjustments
are the great need of these com¬
panies, for in so many cases pres¬
ent rates fall short of compensat¬
ing for replacement costs, which
rate

analysis

last

.greater* ;prdgress: on - the 1 new- iiiL
terstate road program, and total

-.1

This Week

million,

Next year should see

above 1956.

By ARTHUR B.

during World War II.:;
7joined Craigie & Company

1947

the

cashier

trading

and

been

has

department

since

by investors to the annual
mark-up or mark-doVtm of port¬
folio values. This is due partly to
the fact that this figure is given
paid

riers are
at

doing business

cease

or
•

from

periods.

average

For the greater

Toml in

son

will

ad¬

mitted

Jan.

son

prices peaked in 1927 while the
general equity market continued

uated

to rise until about the fall of 1929.

College

And

have

it again in the

seen

part

the

tion
so

Business

waning of the boom in
expenditures.: The great
of business outlays for new

production going into
build-up. During 1957
rate of inventory accumula¬
has been considerably slower,
of

there has been less push from
source.
Some .of the other
are

drop in home build¬

ing from last year; cutbacks and
stretchouts
in
military
orders,

Ad¬

bringing layoffs in the companies
involved; and less stimulus from
consumer
borrowing, since
the
rate

growth in consumer debt

has slowed down.

selves

for

blame

one

United Bond & Share Opens

rather

DENVER,

costly innovation, the package pol¬

icy. This is

erage has

policy.

to engage

been thrown in order to

help the agent

sell the package

Soipe of the

Officers

components

and

often

these

costly to the carrier.

are

securities business.

NATIONAL

Roberts,

Sanford

and

OVERSEAS

AND

Head Office:

;

2l> BJSHOPSGATE,

Request

LONDON, E.C.2

London Branches:

13 ST. .{AMES'S
54

Laird, Bissell & Meeds
Members New York Stack Exchange

-•

Members-American Stock Exchange

NEW YORK 5. N. Y.

Branches in:
INDIA. PAKISTAN, tmON,

Teletype—-NY 1-1248-49

•

Gfbbs, Manager; Trading DepE.j

PARLIAMENT SI REET, SAV.l

uoamm./AV/ibar a soma1.iland protectorate

Telephone: BArelay 7-3500

Specialist* in Bank Stock*

SQUARE, SAV.I

Banker': to the Government in: aden, kfnya,

; "

.
.

BURMA. KENYA,

TANGANYIKA. /AN/TBAR, UGANDA, -v
ADEN. SOMA! ll.anp

the

business

1958 will be at
at

start

beginning

will

ernment

State and local gov¬

should

tribution

plant

„

number

tion

-the

whole will compare with
the year 1957 will depend chiefly
on the trend of the six items listed
year as a

below:

PROTECTORATE,

NORIHLRN AVD <vOLnHl RN RHODESIA.

is,

governments.
Business outlays for new
plant and equipment.
"(3) Business inventories.
"(4) Residential construction.
"(5)
Consumer spending • for
goods and services.
"(6) Commodity prices.
"When combined, the first five
factors account for more than 95%
of Gross National Product. Gov¬

local

"(2)

spending, business capL
tal outlays, and consumer expen¬
ditures were on the plus side in
1957 as against 1956.
Residential
construction was a minus element,

ernment

and

inventory

accumulation* was

representing

the

Show

and

Flower

National

Show.

York

and

Sports & Vacation'
- Oristano,;,
senior
a. Vice-President 7 of
Expositions,
owners

Victor

partner,
New

(private and pub¬

dwelling units

con¬

Poznan, Poland, last
7 7;

industry,

International

nonfarm

new

its

Th© firm is active in the exposi¬

—perhaps beyond midyear.
"The

for

international

the

summer.

equipment will probably show
a drop of around
„
>
"Business inventory accumula¬
tion
will
change to liquidation
before the end of 1957, with the
latter continuing well into 1958

and

...

citation

Commerce

Trade Fair at

"Business outlays for new

New York

public relations counsel, has been
awarded a U. S. Department of

somewhat

spending
greater.

least

Government
larger

Federal

the

than in 1957.

producers

National

the

Sports & Vacation; Show. :

lic) started in 1958 will probably

Associates

Oristano

exceed 1,050,000, as compared with
around 1,030,000 during 1957.
In

Outboard

represent

Corporation,
Waukegan, 111., and a number of
a r

n e

and

its divisions and subsidiaries, in¬

alterations, residential construc¬
tion put in place may be up 4%
or 5%.
' 7 7'*' V ,;;."7

cluding Outboard Marine Interna¬
tional
S.
A., Nassau, Bahamas;
Outboard Marine Belgium S. A.,

additions

including

dollars,

"Consumer
durable

goods

should

record

spending for non¬
and for services
a
moderate gain.

goods

durable

for

total

for

higher point than
1957.
How next

Governmental spending—
purchases of goods and
services
by Federal, State, and

National

"(1)

Ahmiiganwting National Bank of India Ltd.
and Grind/ays Bank Ltd.

"As measured by Gross

that

GRINDLAYS BANK LIMITED

New York

Bell

Vallier,

But in the Herts, Secretary-Treasurer.

Trust Company,

120 BROADWAY,

Robert

Vice-President;

become

Bankers

Bulletin

President;

Jr.,

have been included in the policy

gratis,

formed with

offices in the University Building

extra line cov¬

1958

Oristano Associates,

Bruges; Evinrude
Motors, Mil¬
waukee; Lawn-Boy. Lamar, Mo.,
and Pioneer Saws, Waukegan.

are

The

Sinclair

consumption

personal

"The

price index Imay

consumer

average

from 1% to 2% above the

1957 level. Little change from
is

prospect

1957

wholesale

for the

price index.
to

foregoing,

the

offered as prob¬

the following are

abilities for 1958:

Federal

"The

Board's

Reserve

volume of
industrial production (output of
all factories and mines) averaged
the physical

index

the

for

144

will

1953

first

months

The

1957.

lower.

average for the year
probably be 2% or 3%

;

"Based

results

for

the

first

months, steel ingot production

this

year

million

should be

tons.

The

about
1958

likely to exceed

not

tons.

activities

exhibit

staged

part

of the overall U. S. program.

addition

"In

citation, signed by U. S.
Department Secretary
Weeks, commended the
public relations firm for its ac¬
complishments ' as consultant to
the Department's Office of Inter¬
national Trade Fairs, and for as¬
sistance in conceiving the outdoor
Commerce

Colo.—United Bond Product, the total dollar volume expenditures.

& Share Co. has been

sort of conglomerate

affair into which

serv¬

likely to decline slightly. A gain
of 2% or a little more is indicated

Factors

Six

panies of doing business. In one
respect the carriers have them¬

ices

To Poznan Trade Fair

goods and

Cited for Contribution

Conclusions

Outlays

of the cost to the insurance com¬

items.

the other five

"Purchases

the

factors
A. C. Tomlinson

going to help the in¬ ministration. He also did graduate
work at
the London School of
surance companies get out of the
slough they are now in is a change Economics and Political Science.
to, more realistic rates;
that is, He joined the staff of Morgan
rates that are realistic in the light Stanley & Co. in 1950.
What

has

,here

that

G radu ate

School

development

portant

inventory

Harvard

the

did underwriting.

Probably the most im¬

pressure.

volume

from

a v e r

viously stimulated rising activity
are no longer exerting an upward

plant and equipment, particularly
marked' in
1.956, has passed its
crest.
Another agent on the upr
side in 1956 was the substantial

grad¬

was

that "the business
engine
has
been
losing
some
steam. "Various factors which pre¬

wave

1943 and from

present cycle. In neither of these
outstanding examples did invest¬
ment results play as much of a
,

1,
1958.
Tomlin¬

later 1920's when insurance stock

777W.

Oristano Associates

affects the dollar

course

The

its recent "Business Bulletin."

capital

effective

ner

Mr.

saw

been

part¬

that in the

data.

ment

totals

presented

Bank points out

part, insurance general

stock prices tend to follow under¬
writing results rather than invest¬

trend

years

A. C. Tomlinson

Morgan Stanley & Co., 2 Wall
figures, income receipts and Street? New York City, members
realized
profits on assets sold, of the'New York Stock Exchange,
have been mentioned so much as announce that
offsets to underwriting losses. The Alexander
C.
correct correlation is under¬

1952.'

slower rate. The general price

1958

The

ment

writing results from year to year

Cleveland Trust Company in

Morgan Stanley Admits

the swings

of the 1957

succinct analysis

and

prominence; but also because
correspond largely with
security market changes. But this
year is the first in
the writer's
recollection when
these invest¬

little

3% lower than in 1957.

loss.

110

113 vz

total

and

prosperity under the Ameri¬
enterprise."
Associates, on behalf

system of free

can

Oristano

of its clients and colleagues in the

recreation and

outdoor living in¬

also
coordinated
the
equipment selection which1 de¬
picted aspects of America's out¬
dustries,

door life.

million

"Passenger

"The generous giving of their
time, their skill and their prod¬
ucts," the citation read, "contrib¬
uted significantly to the advance¬
ment of understanding of peace

With J. K. Matheson
<

automobile output
6,200,000

Special to Toe Financial Chronicle)

HICKORY, N/ C. — Herbert D.
Marlowe has joined the staff of
1958 Will
Joe K. Matheson, 256 Third Aver
probably.be below 6.000,000.
ijue/-'N. w."."
/v"-'
"Expenditures
for
"highway

for

1957 will be close to

cars.

The

figure

for

187

Volume

Number

5704

The Commercial and Financial Chronicle

(19)

become
Mr.

Chairman

the

Board.

Bank, Quakertown, Pa.

Young started with the FiatSavings Bank back in 1922

News About Banks

and

ecutive

CONSOLIDATIONS
NEW

BRANCHES

NEW

OFFICERS,
V..' :

REVISED

It
'!'•

also

tees.

ous

that

named

Thomas-Re .Wilcc«;\lprrnerly
Vice-President; i has/; been ap-

Commerce.

Boehm

Mr.

officer

ident to

was

1930 and

•

Barnett,
the \ officer
in
charge' of the bank's Securities

Mr.

his

Corcoran,
with

career

Customers and

erations.
Mr.

Carl

Executive

Mr.

officer

Wilcox

charge

branch

the

offices

Schwendler

■'

'•

Lexington

named

the

The

also

bank

New

Charles

York

elected

Brewer

Assistant

has

Assistant

Personnel

Director

Corn

D.
Millholland, Transcontinental
Banking Department; Edwin A.
Reichers, Foreign Exchange De¬
partment; Carl E.
Schwendler,
Correspondent Bank Department;
and

Richard

Harold

•

New

been

Mr. Northrop .joined : Mahufac-'
Trust Company in August

Troxeil,

Wood

turers

1931; became

Thomas

„

the

for

The * appointment

and

join¬

ing the bank in 1953.
Si!

common
capital stock of
City National Bank of Baton
Rouge, La., was increased from

$1,000,000

effective

held.

one

Stockholders

proposals

This would in¬

New York,

pany,

announced

Dec. 26, it was
by William H. Moore,

Chairman of the Board.

Irving

the

Company,

New

promotion of

Robert A. Kerr, Edwin A. Schoen-

born, Jean D. Zutter, Arnold H.
Nichols, and Albert V. Doherty

Harold S. Corcoran and Lawrence
J. Flaherty, all formerly Assistant
Treasurers of the Banking Opera¬

National

Company,

to Vice-President.'

stockholders

both

January, according to

nouncement

Moore,

Dec.

the

Calif.,

Division,

Ralph; E. Anderson, of the 48th
Street

Madison

and

Avenue

while

Of¬

fice; Michael A. D'Angelico, of
Banking Operations; George A.
Evans, of Installment Loan; Lor en
D. Keys, Jr. and Claude de Messieres,

both

the

vision and Joseph J.

Mr.
reer

the

ager

Office. '

Foreign
Little

Neck

Behlers, who began his

with

the

bank

ca¬

1943, has

out-of-town officer serving
the middle western, states and as
of

the

bank's

Long Island
City Office before being named
in charge of the Installment Loan
Division.
cer

was

in 1948 and

President in

named

offi¬

Assistant Vice-

1952.

Mr.. Boehm
with

handles

European

ac¬

District.

promoted to Assistant Vice-Presi¬
-

head

Nichols
the

Doherty is in charge of the
Personnel Department.'
John C. Selvage, Comptroller's
Division, Ernest D.
Shaw and
Clarence E. Wilkinson, Interna¬
tional Banking Division, were

Di¬

also served in the Credit Division;
as

Bankers

dent from

Assistant Secretary.

Philip K. Graham, Franklin D.
Lane, Robert V. Mahoney, John J.
McFadden, David W. Rockwell,
Arthur R. Roy, Jr., Benjamin D.
Sisson,
Curtis
M.
Smith,
and
Howard
M. Stuart, Jr., were
named Assistant Secretaries.
#

:>
^

•

his '

career

Company in

and

thorities,

Feb.

Mellon

Bank

meeting of the Board of

ness

the Flatbush

Savings

Young

was

elected

President to
will

succeed John S. Roberts, who

the

bank

si:

cording to
the
-

Shields &

the ' New

exchanges;/ac-;

.announcement over

week-end.);.'^

Mr.

Green,; with Shi
1942, iff primarily concerned with
.

nationwide institutional
coverage
for the firm. Prior to 1942 he was
with

Goldman,

Sachs. &

Co.

for

four years.
Mr. Hansel,
in the securities
business
for
35
years,
joined
Shields in 1950 after 19 years with

Wertheim

firm's

Co.- He

dealer

directs

relations

the

activities.

William R. Staats Co.
Admits

and

Partners

ANGELES, Calif.—-Admis¬

sion of three new partners to the
investment securities firm of Wil¬
liam R. Staats & Co. has been
nounced

an¬

by Donald Royce, senior

partner.
A. Boardman Ganfield, Los An¬
geles; Harry W. Colmery, Jr., San
Francisco; and William O. Keyes,
Los Angeles; became partners ef¬
fective Jan. 1, Mr. Royce said.

Relating the assignments of the
partners, Mr. Royce said Mr.
Ganfield will become partner; in
charge of distribution'» for the
new

southern division of the firm and
have headquarters in Los Angeles
at the 640 South Spring'Street of¬
fice.
Mr. ; Colmery will
become
partner in charge: of distribution,
for the northfirh division and w*l

have

headquarters in San Fran¬
cisco, 111 Sutter Street. Mr.
Keyes' assignment will be in the
firm's corporate underwrrting de¬
partment at the firm's Los
geles main office.

An¬
-:

Mr.

Royce

disclosed

also

that

Allen B. Beaumont will, in addi¬
tion to his duties as partner in

charge of municipal bond opera¬
tions

for

ment

northern

the

undertake

division,

additional

assign¬
of administra¬

manager

tion for the northern division.

A. G. Edwards Partner

Dec.

certificate was issued
approving and making
as

the close of busi¬

13, dhe merger of The

Washington

National

Ellensbui-g,

au¬

Ellensburg,

with

into

common

National

stock

Bank

Wash.,
$200,000,

of
of

Washing¬

ST.

LOUIS, Mo.

Lawrence
come

limited

Edwards &

On Jan. 9

—

Kingsland will be¬
partner in A. G.

Sons, 409 North Eighth

Street, members of the New York
and

Midwest

Stock

Exchanges.

ton, Tacoma, Wash., with common

$5,200,062.50. The

effected

and

under

"title

was

National

the

merger

the

effective

Weil & Doyle Admit

•

charter

Bank

Washington, Tacoma, Wash.
date

Daniel

Davis

membership

the

Stock

Exchange

will

the
and

062.50, divided into 442,005 shares
of common stock of the par value
of $12.50 each; surplus of $5,624,-

main office in downtown Aliquip¬

the bank maintains two other
offices, in West Aliquippa and

pa,

will

of the New York Stock

937.50;

Sheffield.

and

not less than

all

full-time Woodlawn Trust officers

undivided profits
$2,105,501.33.

(Special to The Financial Chronicle*

York
Jan.

partner in Weil 8c

Doyle, 30 Broad Street, members

Exchange.

Three With H. Carroll
.

Joins J. L. Peeler

employees will become regu¬
lar employees of Mellon Bank.

become

acquire a

New

merger, the receiving association
will have capital stock of $5,525,-

Trustees of

13v

effective

Denton,

Sis

surplus of $450,000.

stock of

Mr.

Beverly; Ilills,

Currency. L. E. Southwick

Merger

Company, in¬
corporated in 1910, is one of the
largest banks in Beaver County
Pa., with assets of over $23,000,000
and' deposits
in excess of
$22,000,000.
In, addition to its

si:

President

Dec.

According

Hansel

Woodlawn Trust

New

Charles C. Young is Cashier. The
bank has a capital of $600,000 and

Woodlawn Trust will become of¬
ficers

Bank

:5s

by the banking
the three officers

was

of the

and

Bank, Brooklyn, N. Y., Crawford

began
Trust

holders

Calif., was issued a charter
by the office of the Comptroller

Mr.

Neary, Man¬

bank's

Mr.

counts

Glcndaie National Bank, Glen-

were

him.

dale,

an¬

pro¬

•

of-new stock, the
capital stock of the City

si:

banks

the

increased from $1,000,$1,250,000 effective Dec. 17.
(Number, of shares outstanding—
125,000 shares, par value $10.)

by P. M.
Woodlawn

bank's

000 to

Mr. Kerr and Mr. Schoenborn posal, Woodlawn Trust stockhold¬
named As-,
ers
would receive one share of
sistant
Vice-Presidents
in
that work with accounts in downtownMellon bank stock for each two
division.
Also named to the of¬ New York.
'
and one-half shares of Woodlawn.
Mr. Zutter is in charge of the
ficial
staff
of
the" bank
were: J
Subject to approval by the stock¬
Bank's Latin American District,
tions

to. succeed

National

Denton, Vice-

terms

the

By the sale
common

Chairman of Mellon Bank.
Under

Dec. 31,

on
•

President, of

Trust and Frank R.

Ranking,

E. A;

Directors

Bank

Si:

Vice-President

Soaerlund, Vice-President,
has bden elected by the Board of

Pittsburgh,

Company, members

LOS

office, will retire

continue
board -

Company, Aliquippa,

Mellon

Trust

and

S|i

Modesto

but .will
advisory

Pa., will be submitted for vote of

Trust

Vice-

Trust

with

and. Pa.,

1946

second

York announces the

Simultaneously, Mr. Moore an¬
nounced that George P. Barnett,

cashier

promoted
to
President in 1951.

new stock

:!:

biddings,

from, active

laVvn

general partnership; in

(Number of

si:

Sis

Calif.

Assistant

19.

and Manager of The Bank of Cal¬
ifornia's
N.
A.,
San
Francisco,

Bank of Norwalk,
Gonn.,
with - common

Norw alk,

E. Green and
Douglas
R.,Hansel have been admitted1 to

outstanding—160,000 shares,

W. W.

ir'[ The National

R.[

Douglas

Edward

stock

$7,500,000.

•

was

$1,100,000 to

Directors of the Frosf, National

* .^-0"*'?

'!}} \

Dec.

if!

Presidents at Banker^ Trust Com¬

from

value $10.)

par

the bank's
capital funds
$2,456,250 to $2,925,000.

appointed

and

$1,600,000 by the sale of

was

$1,100,000 by

dividend

Mr. Clement

si:

The

years,

sis

the

.Assistant Secre- ■' Clement, Jr. as a Vice-President of
stock of
$5.04,000; and First Na¬
tar.y. in 1939; was made-Assistant) the Chase Manhattan Bank, New'
tional Bank in Greenwich, Green¬
Vice-President in- 1946;; a Vice- York was announced on'Dec. 30;
wich/ Conn., with common stock
President in 1948; and a senior by George Champion, President.
of $500,000, were merged with and
Vice-President in January of' this Mr. Clement, a member of the
into The Stamford Trust Com¬
bank's national. territorial: organ¬
year. .For the past five years he
pany, Stamford, Conn., under the
[ has been in charge of the Metro¬ ization,is associated with the dis-,
charter^ of The.. Stamford
Trust
politan Division of the Domestic' tricf group, that ' supervises -tKe
Company -and undei' the title The
Bank's- business
in ' Minnesota,
Department. "
^ ''y.r '»f
Fairfield County Trust Company.
:
North Dakota, South Dakota, Wis- .
jr.-rv.' „
v■ '
;• tji '../•/#
northern Illinois.?: A,
Fred J. Behlers,. ol' the Install- - con sin and
A proposal to merge the Woodmember of the staff for thirty: ;
merit Loan

and Frank
Boehm, of the Banking Opera¬
tions Division, were named Vice-

earlier this year.
Mr. Kilcran has been
employed
in Merchandise National' discount
and credit departments since

$;:

the

Division,

Proskey,1 who:-joined 'the
1953, was made Manager
the
real
estate
department

crease

from

;

Foster

five

vote

n.-

." ' ;

bank in

Sec¬

Trustee.

meeting Dec. 30.

Jr., and

.y•

each

will

Security Re¬

Department,

Edward E. Green

later.

VMr.

been

and

President

basis

dihy and Frank U. Naughton, III,
in ' the
Investment
Department
and

Batterman,

ele¬

.Bank, San Antonio, Tex., voted to
The Buffalo Industrial Bank,
transfer $500,000 from undivided
Buffalo, N. Yr., plans to make a
profits to the surplus, bringing
subscription offer of 18,750 new the
permanent capital and surplus
shares of capital stock at
$25 a of the bank to
$8,000,000 from
share on the

in the Banking Department

Charles

James

bank, has

t'f

Englert, Peter
Hernck and Harry S. Oliver, Jr.
Other appointments as Assistant
Secretaries were Thomas M. Cud-

announced

been

Assistant Cash-,

ier two months

The
Richmond
Ilili
Savings
Bank, Queens, N. Y., elected John

Treas-

have

Assistant Cashier. V '
MacDiarmid joined" Mer¬
National's staff in-1949

24, the

were

Company,

has

Dec.

Proskey and Co-

Kilcran

He was elected

Flowers, former

sj:

.Vlef

Assrstant

Manager of the credit -York Stock
Exchange and- other
department in September^- 1955.
leading secimitiea

Marsteller has been in the
employ
1928.

York,

surers

Administrative Board of

York,

New

Department.
Appointed as Assistant

■

by Horace C. Flanigan, Chairman
of the Board.'
./.. •
•

Y., announced

MaeDiarmid * has

and became

of the bank since

Credit

•

Trust

Bank

chandise

Mr. Flowers has been in

Vice

-S.

sit:

-•

Mr.

Kings

Marsteller, for¬
mer Assistant
Vice-President, has
been
elected Comptroller.
Mr.

Simmonds, Jr., Chair¬

The

lum' W.

the employ of the bank since 1928.
Mr. E. Holmes

promotion of Ralph H. Nay to an
Assistant Vice-President
in
the

appointment of Eugene S.
Northrop as a member .of the
Manufacturers

man

The

General

Helm, Chairman.

Albert C.

Smith, Indiana-

•.

Bank,

announced

was

tfi

■

shares, par;
v."i

while Daniel J.

Mortgage Officer, has been elected
Vice-President and Mortgage Of¬
ficer.
Mr. Bennett has been in

Ohio-Michigan District. All were
formerly
Assistant
Vice-Presi¬
dents.

York,

"the

Vice-President

Assistant

and

Chemical

30,000

—

named

vated

the

its

President of the Merchandise Na¬
tional
Bank
of
Chicago,* 111.';

and

employ of the bank since 1926.
Mr. George R.
Bennett, former

New

been

the

been named

George E. Barriett, Jr., Bond Ad¬
ministration; Charles R. Dodsen,
Petroleum Department: Julien L.
McCall, Southern District; Paul

Bank " of

increased

by-a stock divi¬
$180,000 to $300/*

from

William

promoted

retary.

been

Exchange

pro¬

elected

Treasurer

and

si:

23.

Mr. Edmund G.

::t

officers

Secretary

1948.

the

announced

Vice-President

Dec.
■«'

Avenue

1922.

officer in

bank's

bank

senior

the

with

was

s|:

;

by the sale of

outstanding

Highway Savings Bank, Brooklyn,
have
been
promoted, Daniel T.
Rowe,' President, announced on

op¬

Ernest K. Zolier has

promotion

. ..

"V ;•

and

gan

Vice-Pres¬

City.

Loan

Bookkeeping - Sections
of
the
Banking Operations Division, be¬

Thomas R. Wilcox

ident.

Three

Com¬

Flaherty, in charge of the

Midtown

Brokers

111.,

$180,000

value $10.)•'

Mortgage Officer
Vice-President.

❖

his

began

Trust

was

Partners in Shields

con¬

capital stock frOm $150,-.

...

Assistant

in 1929, is in charge of the

pany

pointed

who

Bankers

was

Vice-President

Robert,"W.- Ciuila

/ /-.•/•

new stock .ef¬
fective Dec. 19. (Number of Shares

Bank" .Opera¬

Assistant

from

position

present

000

Comptroller

•operations, - has- been

1947..'«

and

dend

Viee-Presidejut in charge

;" /■
' -;
Edward P.* Hoffman,
moted from: Assistant
to

with the bank since 1920 and Was

assigned

000

National

Grove,

common

Trus¬

the
v- • •'

si:

tions./.

Mr.

si:

First

Morton

/. / /v.; .*•/

•

of ' Personnel

Assistant Vice-President in 1944.

Clearance

Board

will

branches by

si:

The

its branch

bank.

moted

with the National Bank

years

the

tinuing

that

William E. Rowe lias been
pro¬
from Assistant Vice-Pres¬

1930, having served for 15 previ¬

York„announced. onr Dec. 26

and

operated

•

1941.

Vice-President' of
Savings Bank, has
duty of

Flatbush

Secretary

.The First National City.Bank of
New

announced

bank

Green and Hansel

office of the discontin¬

ued

been given the additional

»'

Vice-President

was

tne

CAPITALIZATIONS
M

Trustee and Ex-

mam

Quentin 'Frost,

Bankers

and

ETC.

elected

was

The for¬

mer

bush

(fipeslal to The Financial Chronicle)

BEVERLY

Walker

HILLS,

Calif.

—

Carpenter, Joseph J.

DURHAM, N. C. — Christopher
Conlin and Alan Stock are now
Imke, Jr., has -become affiliated
with H. Carroll & Co., 324 North
Trust Company* Philadelphia, Pa., -with J. Lee^ Peeler & Company,
Camden "Drive.
absorbed The Merchants National Inc., Trust Building.
.

*■'

Pro v ident Tradesmens Bank and

The Commercial and Financial Chronicle

Continued from

Thursday, January 2, 1953

(20)

the

As We See

ably would find it difficult to do so even if it had all the
Somewhat the same is to be said of the
outlook for the future so far as the technical' military

facts before it.

subjects. A very considerable part of our relative
tion in scientific attainment is in a somewhat similar

welfare.

future economic

discounts

decade ago. And if
find that a stagger¬

demanding and getting much greater

posi¬

which must

The time has

be serviced.

now

chase
1

"agonizing reappraisal" of many things.
from

page

A Golden

national affairs

our

structive

would

also

are

of the others in
to

of 1961 and the 4s of Aug. 15,
because I

when

Eden, it

may

will

sooner

The

this

era

shall

from this putative

be taken for granted that our economic sins

later find

out.

accomplishments, real or imaginary, of
of welfare economics should not be permitted to
boasted

lull the rank and file to
to

be banishM

labor

sleep.

measured

everuwhen

True enough, wages paid
in terms of ^purchasing

than ever before* Corporate profits—
of unincorporated business — are still
high measured by almost any standard. The volume of
total output of goods and services has been in an upward
trend for a good while past, and is today at a very high
point. This is true whether measured in depreciated dol¬
lars or in actual physical quantities.
More people have
better houses, more cars—and more gadgets—than ever
are higher
the earnings

power
and

before.

and
on

The

all sides toward the end of the mad years

There

was

of the late

often called at the time.

half-humorous comments from

were

ticians about two chickens in every

leading poli¬
pot and two cars in

To all too many it seemed that a new day
really had dawned and that the sun would never set upon
it. Yet looking back on that period it seems strange that
more men of light and leading did not perceive the price
that had been paid for what had been accomplished and
the weak foundations* upon which the superstructure
rested. It took the 1929 collapse and the dreadful depres¬
sion of the years that followed to convince us that we
had been living in a fool's paradise.,
y
every garage.

When

business

that

our

billion net, or

1929.

Even

13 times whatsit

tional signs

now

was

well

Nor

■

♦

public debt confined merely to the Na¬
Our states and municipalities have
added to their debt load by some 225% since 1929, and
now shall have to
meet the charges,, to say nothing of
tional

our

Government.

were

the

reffinding

maturity of 3%%

indebtedness

cer¬

and

billion

$l1/<>

money were

the

new

attractive,

very

indica¬

ket when conditions

der the

reached.

are right. Un¬
circumstances, I am con¬

vinced

that

that, the
dicates

102

22/32-26/32,

trend
in
bond
I think that under
conditions, it
behooves
those who are in short position to
lengthen out, at least moderately,
as
protection against a further
easing
of
interest
rates
which

respectively,

tive

lows

would, of course, result in higher
bond prices.
In

closing, I would

view

and

leave

thoughts with

(1)
bills

Those

like to re¬
following

the

:.v

you:

who

heavy

are

short certificates

and

should

give consideration to a moderate
120 26/32- lengthening
program
to
freeze
against respec¬ presently attractive yields for a

these two

lor

...

and

103,

Some addi¬

quoted

in¬

moderately

present

"two-and-one-half-by-fives"
(Dec.

atmosphere

continued

upward

prices.

prices during recent
The
"two-by-fours" and

now

offerings
issued, and

market
a

strong

sharp rise in Govern¬

attractive

continue

will

issues

of:

Yields have

99 30/32 and 88 29/32.

period of years. In this connec¬
tion, I would suggest maturities

been sh ar ply < reduced

have done this

are

rather

en¬

(2) On Nov. 14, while we were

viable position.
The question at
announcement re¬ present is, " what- should be done
garding the terms of the refund-; now that the level of bond prices
ing of the Dec. 1, 1957 3r?«% cer- is appreciably higher than, say, a

.waiting for

tificates of indebtedness, the elee-' month

announcement was made

trifying

»instead that the discount rate had

reduced

full half point in

before >the

Committee

Small

House
at

the

time

cut in the discount rate is a

fectly
.

straightforward

the

"per¬

clear

and

signal that we saw some change
in the business situation." Reserve
Governor

Shepardson

just

plainly in

that

would

made at lower market

levels, but where; the trades can
still be done at a profit, I think
they should be done.
Likewise,
those
who
are
overwhelmingly

have indicated that

figures in February will be higher
than
a
year
ago,
and that the
October

Consumer

Price

Index

B. J. Van

Vice-President of

From
fer

the

House

Van

New York

City, underwriters and

distributors
has
a

been

municipal

announced.

member

the

bonds,

Mr.

Kezer,
Ingen or¬

Van

ganization for 15 years, has been
active in tax-exempt bond circles
in

State

the

member

nors

New

and

years

many

the

Bond

for

Jersey

present is

Board

Club

Gover¬

New

Jersey.

bank

standpoint, I pre¬
coupon
discount
because, of the better

With J. C. Flax Co.

smaller

obligations

dent of the Federal Reserve Bank

before

F. Kezer

Ingen & Co. Inc., 40 Wall Street,

(Specir.l to Tut; Financi.v, Cttpcvtcle)

after-tax

York,

Ingen & Co.

The election of Edwin
as

1960-61-62-63.

practically unchanged from
September. Furthermore, the re¬
marks of Mr. Alfred Hayes, Presi¬

was

New

yield than high coupon

unemployment

are

their better

E. F. Keier V.4\ of

have been

issues.

not

said
bills
and - certificates
speech in Chi¬ heavy in
cago the same day, "It seems clear should give consideration to. the
that the boom has lost much of replacement of a portion of these
its
momentum."
Mr.
Mitchell, maturities by acquisition of issues
the
intermediate
brackets,
Secretary of Labor, is reported to in

Board

■

it qs.

out; some. taxrswaps

testimony

his

that

after-tax

obligations

because

predictions are always
dangerous, but I am of the .opinion

said

Chairman Martin of the Federal

ago?

Definite

Business

Other districts fol¬

Board

dwo

•

too late to adjust
positions at this time. Those who
have tax-swaps,which can be ac¬
complished at a profit, should not
hesitate to complete them. I real¬
ize that-The market has .washed

lowed suit.

Reserve

discount

coupon

attractive

•

is¬

to be added, no one can say what
*

at the end of

their

the other future commitments in the forms of "insurance"

and guarantees were
the total would be.

time

In/all sec tors from 1960 to 1963.
.
r
• ♦
.
icy are as follows:
of
the economy,
and the latest
(2) Insofar as is possible, try to
(1) While it is customary yat issue of bills sold at
*ah,.average retain the* 4%'notes due Aug. l,
.this time (in December) to add of
3.153%,. against the all-time 1961, and 4% notes due Aug. 15
reserves to take care of the normal
high .of 3.660% oh Oct. 17, .1957; 11962. You probably. will not see
credit expansion of this period, I
For some little time I have been
any more of these "holder-option"
believe that the Federal Reserve
advocating a moderate lengthening obligations for a long time.
<is now prepared to add more than
of maturities in: order to ; freeze
(3) If you are in a position to
the normal amount of reserves to
the existing attractive rates over
accept a smaller coupon in lieu of
combat any downturn in business
a
period of years, and those who higher current income, the lowwhich may occur.
.
*

over

per

good

of the change in poh

four districts.

capita basis it is startlingly higher.
Most, but not all of this is, of course, war generated, but
it is resting on our shoulders just the same. 'What is more,
\this astronomical figure does not show even half of the
)bligations that we as a nation shall have to meet in the
mars to come.
Social Security, so-called, of itself prob¬
ably will lay burdens upon us even greater than is shown
in the total national debt as ordinarily reported.
If all
on

not

are

the time to initiate a change has

Forget

national debt

bond

weeks.'
t h

generally supposed to be, and that

>225

been

ment

clearly indicate that the monetary
authorities
are
convinced
that

moment

has

developments, such as the
ieduction in the negative reserves,

begin to feel boastful about our 4'accom¬
plishments" during the postwar years, let us not forget
for

Committee

The effect of these developments

recent

been

Lest We

the

terms

Dec.

tificates

Offers Advice

at last been

'Twenties—a New Era it

thing

mium bids on their payment dates.
with open market oper¬ The success of this operation in¬
do provide additional
dicates
clearly
that
Secretary
as I think it will,, then Anderson
and
his advisors will
safely assume that the not hesitate to tap the long mar¬

types of
waiting for

but

let it not be

forgotten that similar boastings—
similar achievements—were to be heard and found

are

that

ations

easing of the policy of restraint,
it seems obvious to me that

But

bonds

the

investors had reserves,
we
can
evidence of a
policy of restraint has been re¬
change in Federal Reserve policy
placed by one of ease, even though
as more and more signs of spotty
I realize that the degree, of ease¬
weakness appeared in the business
ment is subject to further clarifi¬
picture. There was an underlying
cation.
As a matter of. fact, it is
feeling, however, that there would
be ample warning before the turn perhaps possible that the market
has been overly optimistic regard¬
Was reached, and that banks and
the ultimate results of the
other investors would have time ing
steps already taken, but .J have
to
adjust positions to meet the.
the feeling that the turn has been
problem when it became apparent;
made even though there may be a
that a change in policy was im¬
difference of opinion concerning
minent. Even now, in accordance
the extent of the change.
with usual procedure, nothing of¬
ficial has been released regarding

considerable number of years. Even
many believe, that the day has not yet

true

1962,

convinced that such

past, and that these were
only offered as a concession to the
unhealthy market conditions that

existed

interpreted

Most

been

a very

if it is

im¬

the

to the 4s

If the Federal Reserve fol¬

dous.

Signs of Federal Reserve Change

harsh facts would have to be revealed and their
bluntly explained. The truth of the
matter is that we have been living in a sort of fool's

arrived

like to stress

portance of hanging

lows it up

inwardness

paradise for

necessary

dealers covered short

inertia in the market.

very
true

He and his principal advisers are
under the influence of the unsound ideas

responsible for our present impasse. If he or any
positions of influence in Washington were
decide to tell the people what they ought to hear, some

that

However, mild rallies
developed from time to time

find

a 414%
taxable
similar maturity. I

par

is
eviofcmced by the premiums al¬
positions, tion that the Federal Reserve will ready quoted on all three of the
but outside of this type of trading, put additional reserves
into the new issues. You are all familiar
there has been little action in the system.
with the small allotments made
The
reduction in the discount
market.
As a matter of fact, it
on
the cash offerings, and it has
has been difficult at times to get rate will not in itself provide more been a long dry spell since we
reserves
to the system, but the
either an offering or a bid on a
have seen cash offerings produce
block
of bonds
because of this psychological impact is tremen¬ issues showing good healthy pre¬

really con¬

to have much that is

widely

suggest.

much

far too

raising
Small

have

suance.

Business

the tickets.

Realism Not Likely
VWMS There is,, unfortunately, no good reason to expect
President to take a realistic look at these phases of

vWWWXp'WW
the

would

obtain

coupon

with

selling at 92 Va, to yield
to maturity.
In order to

the

note

and

investor

In Government Bonds

25%

comparable return without
capital gain advantage, the

get

Opportunity

for self-defense, but our

bond

maturing in October

holder-option

Continud

tax bracket may pur¬

coupon

3.12%

the

result

Government

Vz%

1962

pay

for

come

taxable

in the 52%

hours less work. To some extent this burden
on current production has been limited by enormous ex¬
penditures on labor saving devices and technological im¬
provements, but this has entailed enormous investments

cate¬

selling

now

capital gains rate, whereas inter¬
est is taxable as ordinary income.
For example, a corporate investor

for many

since it is so closely allied to defense matters that
the"general public is not by any means fully advised as
to the facts. There are, however, other broader aspects of
our current situation Which go much deeper, and about
them the people of this country would do well to do some
very careful thinking on their own.
These problems un¬
derlie hot only our ability to make use of such material
at our command

Labor

gory,

resources as are

of, say, even
banking statistics,

realized

tion

ing part of all these increases in debt have been mone¬
tized through commercial bank purchase.

judgment — and probably can do no better
accept it as presented.
much for the strictly military aspects of these

dreamed

never

are

give rise to capital gains possibili¬
ties in these issues. The apprecia¬

turn to the

v/e

learned

than to

on so.me

people

ure

position of the two countries are concerned. The Presi¬
dent is naturally fully informed and is a respected pro-fc
fessional student of such matters as these. We must await
his

low-coupon issues

billion in the years to come. And
individuals have been no less reckless in
their debt engagements. Home mortgage debt at the end
of September, 1957, stood at $105 billion, more than five
times the figure for so recent a year as 1945.
So-called
consumer debt, now stands well above $43 billion, a fig¬

principal,

first page

SPRINGFIELD, Mass.—Charles
Meehan has become associated

yield,
but
some
will
choose.. the
higher
coupons
to

satisfy, current income needs. Ex¬

with J- Clayton Flax & Co., 1562

isting tax laws and the substantial

Main

discounts

with Edward E.

which

many

the

Street.

was

formerly

Mathews Co.

Volume

187

Number 5704

The Commercial and Financial Chronicle

(21)
Continued

from

page

recent

supplied

were

with

great

ally
firm,

deal

stantial

allowed

gradually to
more reserve funds than
they had
somewhat, there was one
any hope or idea of using.
By the major downward swing in rates,
end pf 1935, "free! reserves"
(as This was the period from the elccwe call; them
today) had reached tio.n in the. fall of 1948 through
$3 billion.
They reached nearly- the end of the year 1949; There
$7 billion at the end of 1940.
der

is, little

Un-

the

circumstances, it is not
•surprising that interest rates declined substantially from 1933 until December, 1941.
But it is too
-simple an explanation to give easy
credit

role.

Private

the

off, and

-was

interest

this

ex-

curred in

since it ocperiod of rather close-

ly ..controlled

interest

circumstances

rates

when

completely
prevail-

were

different from those
important ing.(( 7
7,. 1

only

perience,' however,

•

bank

were

now

„

demand

for

credit

even a Federal deficit

Since

the

1951

flexible

monetary and credit polthat
seemed
large at the time icy, we have had
only one major
•could
not
fully fill the gap in
downswing in interest rates—the
demand.
■•(
period
from
mid-1953
through
Perhaps
the
truly, surprising mid-1954. There is much that we
(thing, at least from our present can learn from this fcxpefience
vantage point; is that long-term with respect, to the behavior of

rates declined

did

during

short-term

Even

ventured for
term

.year

they

Yields

Day-to-day

worthless.

.was

interest rates at a time when a
slackening, in private credit dequickly all but mantis- is accompanied by a credit

'30's.

money

disappeared.
was

faster than

the

and monetary policy designed
cushion a business recession,

money

that

three- to five- (.
somewhat longer

less

than

year, yields

one

lift

increases

not

interest rates that

vS
•percentage^
percentage
oiM/

fe?QqoUJ~

It has been fashionable in
quarters recently to

^n
m

point

abodt
about

say

some

that the

authorities moved to° quickly and
their

six

too mnich

that to atbusiness top that
year

today, the over-all experience
the

tempt to call

30's may

not prove to be too (closely. again was too dangerous
certainly not my (because of the inflationary potenpresent expectation that anything tial should the business turn fail

helpful.

approaching
ahead
That

tory,

that

period is to materialize.
It is a far step,
in
business
and
finance., however,., to conclude from that
unfortunate period in hisr,
premise that Federal Reserve polhowever, can serve as a.4cy will not again follow the same

background
term

full

reminder that

rates

short-

pa.th

it did in 1953, once
downturn has
been

as.

busi-

do not hold

either under:jsueh

circumstances.
.

During. World
rates

.of

were

War

interest

for

fact

eral

that

smaller

debt

after

there

amount

repayment

Government.

factors

was

This

trick

easy

acconi-Jrn&y"' be likened to

was

three-stage

plished by creating enough

money rocket,;, each
rocket stage reprekeep rates down, and then per- sented by a year—the years 1955,
.suading, people either-"to invest* 1-956 -and (1957.
The first stage
this money in government bonds (£95.5).. took off with a powerful
or at least not to spend it,
limiting surge of credit demand from busithe availability- of civilian, goods
nessesj consumers, and home buyso
that
there was
little oppof-.-eri.. Interest rates rose slowly but
tunity to spend. Because the back-.-steadily: Jn that year; they were
ground of a depression was in hel^-bae^. in their rise by a repeople's minds, the immediate re--ducetj demand for borrowing by
suits
of
this
financial
squeeze (the. Federal
Government, by a
were
successful, although it may huge- investment by business corbe
doubted •" that
things
would, poratidns. of excess cash in the
work out as well again without- money, market, and
by a fairly
stronger
direct
controls.
I
am
substantial expansion in the volpredicating my discussion, how-.- umg of demand deposits and bank
-

.to

peacetime situation, or, credit. .......
only slightly more ' 4Ip the year 1950, the second
warlike than, we have had recent- rocket stage lifting interest rates,

ever,
on

that is

one

ly, so there is little point in dwelling on what might happen to
interest rates in the event of

war.

Flexibility

The record of much of the post-

period is

war

from
of

five
the

war

years

step from
interest

interest

period.
after

authorities

lating

of readjustment

controlled

the

one

concern

rates

the

took

It1

was

war*

the

rates

fully
before

essential

for the level of
concern

for

the

re-

supply of money and
credit to the prevailing business
climate. During this five-year period, when interest rates gener-

but

sharp slack¬
borrowing at

mortgage

borrowing.

further narrowing in

really

the fact that

have

the

at last achieved

The

lift
from

come

Federal Reserve
full control

over

demand

deposit expansion
stopped it so far this

and

level

System
break

but

the

price

also

seemed

further

all

the

rates

shot

category

debt

are

figures,

con¬

home

which

systematic

study
supplements

technical

inpluding
made

the Federal Reserve System's re¬
search staff. Among other things,
PartT explores the inter-relations
of instalment credit and consump¬

tion; the mechanics and character¬
istics
the

the

pattern

instalment
nomic

the

$9 billion outstanding.

Notably excluded from the
sumer

the

burden

part

credit

instalment

played

and

use

the

eco¬

instalment debt;

economic

fluctuations,

process;

consumer

credit

instalment
growth

several

Continued

and

other

page

The Commercial and Financial Chronicle

(28)

Continued

jrom

page

University

Michigan,

which most students

great

spend

significant
of burden,

the

.some

statistical analysis of
major points raised

and, in addition, discusses the rise
instalment

credit

statutory

alternative

some

proaches

abroad, and
ap¬

Study is that of the quality of
credit, i.e. the terms on which
credit is extended and the sound¬

regulations desired.
If Part I is the
a

presents

of the

a survey

instalment credit industry's views

desirability

the

Part

peacetime

credit.

instalment

regulation
This

reviewed

can

word—No.
Part

volume,

printed in June, 1957, presents the
results of
of

national field

survey

in 1954-19515.
will doubtless be of
great
and
detailed interest
to
those in the industry. But in view
of the uniqueness of the period, it
buyers

car

new

This

survey

will

(including

pay¬

costs)
higher

in 1939.

into

the

instalment

payment to

was

ther, in looking
ratio

housing

income

consumer

in 1955 than it
the

inflexible

Fur¬

rise of

debt,

re¬

income, the

consumer

Study found that most of the in¬

relative

establishing sound credit,
clusion
most

reached

con¬

intuitively by
of credit.
Dr.

practitioners

Moore's data show the direct rela¬
tion

of inadequate downpayment
losses, and implies this is the
key with which one can estimate,
from before, such losses under ad¬

sixth

the

IV,

crease
was
accounted for by an
Increase in the number of debtors

sense,

Part III

ments
to

ratio

ness thereof.
Perhaps such an im¬
portant question demanded fuller

meat, Part II is,
ford; and, therefore, the really
the seasoning of the
monumental analysis of the ques¬
Study for it presents a collection
tion-by Dr. Geoffrey Moore, in
of papers by university scholars
Part II, is construed
to be the
prepared under the auspkes of
the
National
Bureau
of
Eco¬ Study's contribution to the ques¬
tion of quality. Among other find¬
nomic Research. These papers are
ings, Dr. Moore points out the im¬
divided
broadly
into proand
portance of adequate payments in
anti-control arguments.
in

the

treatment than the staff could af¬

instalment credit

were

unique, but rather part of a
period of long standing.
most
Important question,
which is not faced in Part I of the
historic

conditions.

verse

Data outside the

Study show that sales finance
companies have traditionally ex¬
tended

credit

for

autos

what

base.

termed a collateralized
That is, credit was thought

sound

may

long

the

total

for

this

This

dent.

riod

growth

readily evi¬

uniquely the

was

the

are

development

pe¬

the

1929, the year of most
raiHd'decline of employment and
other

variables

the
pression.
automobile in American. life and,
of

half of all instalment credit

as over

is for automobile use, the growth
is not unexpected. Moreover it is

period in which the method of
payment for the services rendered
by durable goods changed from
unrecorded to recorded instalment

came

example, the
allowance be¬

statistic when

erator

For

iceman's

weekly

tjae^refrig-

bought on time. This
statisticalization happened with a
large gamut of goods and services
purchased, and is still going, with
say, vacations.
Further, it was a
period of changing moral values
in which the prejudice against in¬
was

stalment debt declined to the

eral

distribution

classes.

And,

inco

m e

among"

the Study shows,

de¬

Motors

Acceptance Corp.)
only about two-thirds of 1.%,

were

in contrast to amounts running as

population.
individuals are no deeper
than they have been but
more are in an income position to
bo
eligible, for instalment ftebt,
and have used it.

„

The total instalment credit out¬

standing is owed by about 47% of
the total families in the U. S., the
other 53% having no debt. With
respect to repayments, 85 to 90%
of all U. S. families face debt

of After¬

payment less than 20%
tax income.
or

Only 2%

While

life takes

tends

ahead

run

rapidly.
In the postwar decade, with over
2 million families per year

enter¬

ing the $3,000 and more class per
the base of discretionary

year,

spending

broad for dur¬
able goods, consumption and the
use

was very

of credit.

To these rather obvious
more can

be added.

significant

findings

eral Reserve

factors,

However, the
in the Fed¬

Study is the fact that

instalment credit grew more than

could be explained by the increase
in consumer expenditures for au¬
tomobiles and other durable goods

commonly financed

instalment

credit.
'

The

most

plaining
of

this

instalment

eralization
unrelenting
decades
tion of

obvious

factor

rapid

credit

was

ex¬

growth
the

lib¬

pf credit terms with
consistency over the

studied.
terms

and

The

liberaliza¬

downpayment.s

which took place in 1954-1955

was

that most of the debtors are young
middle-ela6s families fits the life

cycle pattern/in which goods are
acquired at the outset of the fam¬
ily consumption cycle by debt in¬
struments

which

discharged

are

short period of

time, in

ex¬

corporation

same way a

ouestion

determine
terms

quality of

whether
se

per

and, if

credit

danger

are

lengthening

signals

under what conditions.

so,

Since 1955, even with

lengthening

terms, the evidences of difficulty
of

;

The Federal Reserve Study at¬

tempts to estimate what automo¬

biles-credit might have been with¬
out

lengthening

concludes

been

the

closer

maturities,

figure would

billion

and
have

rather

than 814 billion. Whether the level

of auto sales cf the duality of car
being Droduced would have been

possible without this lengthening
a moot
point into which
the Study does not go.
I would

of terms is

guess

that

terms

neither

quality

without

car.s

mass

lengthening
markets

nor

would have been pos¬

Another question
flection

the

concern

burden of debt

the economy.

worthy of

about

debtors and

the

■used

older

data

compiled by

Survey- Research

Center

repaid fully.

now

the other end of the scale the bur¬
den of debt among older families,
or

the
the

Jacobs

Mr.

sales

from

time

very low income families who

makes

clear

very

lor the fact that general con¬
trols do have an important effect
the

funds

amount

and

available

companies.

rather

sources

sales

leaves

amusing

all

used

finance

the

trols

its

the

general

con¬

disposal, operating in

authority should approach the

One

the
of

regulations
already in

Mr, Mills essentially argues that
to

satisfy this social criterion the

Federal Reserve Board should reg¬
ulate
so

the

for

Within

for

the

funds

might

various

they will.

Study is

the total
.the. significance of
of instalment credit
effect.
Specifically,

the

Federal

but

on
a

the

regulation by all states is a
fair prospect.
This regulation takes the form
maximum amount which may

imposed

service

charge

instalment

for

trouble, in

little

amount

result

bad

light.

very

followed

World

tral Bank in fact had

Part II, there is clear evidence of
effectiveness of general mon¬

the

etary controls to affect the price
money and its source for sales

finance companies. The state reg¬
ulations in effect preclude, at some

point, the passing
charges

Let

to the

that

interest
This

consumer.

discharge

and
an

The

debt

consumer

acquisition

orderly life cycle of

part of

consump¬

instalment

for

that

the

credit

very

direct

regulation hinges
oh the allegation that finance com¬
panies can always pass their bor¬
rowing costs on to the unwary

;

While the state

mentioned

stroy this

regu¬

effectively de¬

argument,

Study

the

remember

case

the

soundness of.

nowhere

the significance of

was

development analyzed.

policy

or sovee buy¬
time the acqui¬

Credit and Economic Fluctuations
A final question on which Part I

The final

point

significance

the

Study is its look into the
future." The Study concludes that

Board

past but
sumer

rapidly than con¬
income will rise.
By 1965
more

may

14%

their

The Study
of

concluded that instal¬
a principal cause

economic

plays

some

part.

some

fuel to booms.

depressions

leading

factor

it tends

revival.

Dur¬

How¬

it should be stressed that in

ever,

the

Annual

Survey of Consumer
finances in successive issues, of the Fed¬
eral
Reserve
Bulletin, or
this
writer's
"Instalment"

Credit:

The

$28

Billion"

Question",Harvard
Business
Review,
July-August
1956,- for ,a
summary
of
these

data.

instalment

putting

spendable

buying

13%

income

against
11% in the last two years, and 7%

in 1940."

Board

serve

rather

reacted

ex¬

cessively to the recession of 1954,
which in any cosmic sense \yas
very slight.
In doing so, it pro¬
vided too much economic liquid¬
ity and so set off the burst of
.

consumption which we saw. Im¬
plicit in Mr. Mill's statement and
in

the

judgement

judgment
central

any

Federal

has

the whole done

low)
Mr.

keep

but

sharp

not

alternative

the

within

credit

total level of
reasonably

employment,
that

con¬

with

consonant

fluctuations,

percent

Mills

if the monetary

that

then

authorities

ex¬

well,

abnormally
misjudgements.

full

errors

are
inevitable for
bank authority, the
authority in the

cludes

students
some

and should be al¬
normal (actually to date

tremely
lowed

while

Reserve

here

the

uses
econ¬

Policy Implications of the Study
"

Now, what is the significance of
this, at least in the U. S.?
The

history of economic thought is re¬
plete with examples of limited in¬
quiries which lead to rather broad
generalizations. I think something
of that tvpe has happened here.
The significance of the
study ob¬
viously is-not that
be

quite

market

given
be

use,

consumer

controlled1

credit

because-

the

clear,

that

allocate

wants

credit

amount

sumer

the
any

con¬

the free market may
to do so, as its past

entrusted

performance has been
If

the

good.

Reserve

Federal

Bank

keeps its part of the bargain and
prevents
excessively rapid eco¬
nomic liquidity,
the

Mr. Mills argues,

quantity of instalment credit
excessive, by definition,

cannot he

whether'it
the

will

matters for the free mar¬
The'implication

•

cycles,

although it
Like all credit,

control

ket to determine.

families

ment credit is not

act

supply.v

money

omy are

purveying

level of

into

light is

for the Federal

tions

the relation

some

monetary
government

the
prices of government bonds, and

instalment credit/and the institu¬

of credit to economic fluctuations.

throws

because

fiscal policy which supported

credit

it, have reached
maturity which means a
ing. At the same
less rapid growth of credit in the
sition of consumer capital provides future than in the
past.
The
a
strong incentive f o r income; Study's press release on this ques¬
earning, and contributes greatly tion continues, "Consumer credit
to social stability through wide¬
may grow by 5% to 6% a year,
spread ownership of durables.
more
slowly than in the recent

tion, and not whim

going

From the Study, and particu-: •.■•At; a latbry time in
1955, Mr.
larly Mr. Jacob's contribution in Mills argues that the Federal Re¬

the

the U.

II,

this

great

War

through 1951, the American Cen¬

sion.

This aspect of consumer capital
formation is one explanation of
debt in

judgment, and

made it impossible

lations

debt' instruments

yond its control/ For example,; in
the inflation in the U. S. which

the

/ '

credit

sometimes the result of forces be¬

Reserve

;;

has

providing

Sometimes this has been

ments not relevant to this discus¬
,

has

admirably,

occasions

two

exact

Board

task

credit, as well as
licensing, disclosure and other ele¬

where

go.

may

Reserve

this

one

had

the

rate

parts

In the immediate past,

performed

regulation in some 15 or 18 states,
including New York, Ohio, Cali¬
fornia and/many of the larger
states.
Further,-the adoption of

nor

too rapidly and to
long run economic
this framework,

economy

wanted.

of credit,
inflate

amount

total

neither to deflate

the

there exists instalment credit rate

the1

of production is consump¬
tion; that the sectors of the econ¬
omy should be left free to go where
they will.
*

growth.

major criticism of Parts I

sovereignty,

consumer

provide

slowed if not halted.

omission

purpose

companies to the

r/arket

have been

and

end

mhney market, the march

consumers.

assump¬

question pf credit

clear

implication

the long^as well as the short

acquire

no
consumer
capital, or
wealthy families which need

His

time.

tion, very simply, is that the social
criterion with which a monetary

fi¬

case

very

1 See

With respect to the

Mr. Mills makes one very in¬
teresting assumption which might
be questioned in Europe, at least

distribution of debt, the Study has

April 11, 1957.

the belief that

ing
re¬

the

ject to indirect monetary controls.

purchased with instal¬

Policy," re¬
"Commercial and

Public

and

printed

purveyors are more than ever sub¬

it adds

sible.

mem¬

Credit

state¬

Financial Chronicle" of New York,

means

were

the

instalment

Federal Reserve Board, in a

$47

billion are owned free and
clear of debt. Over two-thirds of

particularly

been

by the address of Mr.
Mills, a Governor of the

million,, conservatively valued at

credit,

into

Of the 56

privately owned automo¬
biles in the U. S., an estimated 45

ment

somewhat.

most

desperation borrow¬
ing, but rather as a means of con¬
sumer capital formation.
The fact

has

made clear

nance

longer

place.

these

repayment—delinquencies and
not
only
income group and particularly the repossessions— have
stayed at their historic postwar
younger
members of this
sect
levels but, have actually improved
whose
use
of instalment
credit
it is the "arrivistes" in the middle-

cessitous

Despite this historical record, it

further

of funds for

sources

the

social

tant aspect of the study is the
analysis it has fostered, and this

use is utilitar-^
ian; that it satisfies the greatest
companies, and Dr. Geof¬ good of the greatest number. In
frey Moore,
whose analysis of other words, he is saying in an¬
quality of credit was briefly dis¬ other way that in a peacetime free
cussed above, have also done ex¬ economy the
purpose of credit is
tremely perspicacious analyses. ultimately to satisfy the criteria

the

sales fhiance

would have been highly desirable
for the Federal Reserve experts
looked

question

the

million

have

and

auto

acquires capital assets.

yond

the

entire

greater losses.

out

As usual, Pro¬
Friedman, in his
ease
against
direct regulations,
has provided a brilliant and logi¬
cal analysis.
The validity of. his
method of thinking goes far be¬
Milton

fessor

use,

Sti^ty indicates that losses for the

took

stand

worthy of study.

individual's

much

over a

bases

items

two

one

mal

amounts

The most impor¬

ment called "Consumer Instalment

be¬
lieve, present some of the major
With respect to Part II, as
is
always true with University
professors, controversy rages. Yet

young,
unmarried "spending units" whose
income allocation permits abnor¬

where

said

has

Board

Reserve

fiiids.

that if the Federal Reserve Board

cases are

Federal

that it will not.

justice to Part I, they do, I

has

in the main these

Thursday, January 2, 1958

Abbot

here,

of genuine excessive burden

actly the

industry for this year were
significantly higher, about 1.15%.
Thus, the smaller companies with
presumably
less collateralized

cases

scattered

some

40%

repay

income.

their

there may be

re¬

analysis
not

credit. Two National Bureau

as 80% for other categories
debt.
The
Federal
Reserve

been

bers, Mr. Don Jacobs, writing on

high

van¬

ishing point. Finally, and partic¬
ularly in the postwar, decade,.. it
Was a period of
revolutionary re¬

great

For in that year losses
amohg t h e t hen "Big Three"
Universal Credit and Gen¬

payments.

the

durables; have

Thus,

the value

year

for

in debt

The
conclusion
offer little in the
is
inescapable
of the goods being financed in the
way of timeless conclusions.
that the burden of debt, under
market was in excess of the note
At present, then, the best use
reasonably stable economic condi¬
to be paid on it.
The downpay¬
of review space is particularly on
tions, is not a serious question.
ment was regarded as a key; it
Part I, and a bit on Part II of the
Under intense cyclical fluctuations
had to be high enough to offset
it is our guess, although not a
Study. The most logical point of
depreciation and provide a pur¬
departure is a„ backward look at
Study conclusion, that difficulties
chaser equity.
Once established;
the
historic
development and
would be most severe for those in¬
maturity length became a func¬
stitutions or borrowers who have
growth of instalment credit.
tion of price. Obviously, with everConsumer instalment credit ex¬
departed from a collateralized base
increasing automobile prices re¬
panded much faster than any other
for credit extension.sulting from a constantly better
type of private debt over the past
Related to the question of the
four decades in the U. S.
From quality of car. terms could safely
be
lengthened without distress, burden of debt is the purpose of
1920 to 1955, the level of instal¬
debt. The Study reaffirms the fact
even in periods of downturn.
ment credit multiplied 30 times,
If this hypothesis needed em¬ that consumer debt in the U. S. is
compared to a tripling of all pri¬
pirical proof, that was provided in not undertaken as a means of ne¬
vate debt.
Some of the reasons

probably

after

comes

While these remarks do

however, is the Study's discovery

not

cycle

decisions to spend or pot

made.

picture and
question of burden.

that

questions. The special supplement
Study in Part I, Volume II,

revealed

instalment

the

consumer

credit

Of Consumer Credit Aboard
is largely a

the

event instalment credit, in its

any

relation

New to the question

Prospects for Increased Use
to this

strength

with

familiar.1

are

These oata then, as now,

national

that

argues
tends

riods

quidity

excessive

and

quality
as

pe¬

will

instalment

li¬

The

Fed¬

total

control

outlined

under

economic

inflation.

Reserve's

eral

credit

well

deteriorate

14 or 18% of
Further, he
quality of credit

11,

income.

the

affect the

credit

.as

the quantity, and prevent

qualitative deterioration of "credit.

Personally," I

agree

' with

general views,, but I*am.

his

not/sure

Volume

Number

187

The

5704

Commercial and Financial Chronicle

(29)
■I

that I agree with him or the Fed¬
Reserve Board

eral

tion of quality.

should

Perhaps

reversed.

our

sides

all

hon¬

esty I must say I do not think the
relation

automatic

level

general

the

between

money

the

and the question of the
quality of credit is so easy. Par¬
economy

ticularly in a period when wide¬
spread instalment credit use is
new, as it is in Europe, or when
with

institutions

new

rience

less

expe¬

the

enter

field, as some
have in the U. S., it is easy for
the unexperienced to misinterpret
the history of instalment credit.
Losses have been low in the past

because

great care,

and

collat¬

eralized

base, was used in extend¬
ing
credit.
Some
of
the new
elements in the industry, anxious
to gain volume, may throw cau¬
tion

the

whether

winds

The

this ques¬

the

In
the

German

Germany,
problem

vated

Situation

well know,

as you

somewhat

aggra¬

by the very large earnings

of foreign exchange. On the other

hand, the problem has been miti¬
gated
by
a
rapidly
expanding
labor
and

force

from

elsewhere

most

East

which

fully utilized.

would expect

problems
other

Germany
al¬

now

Consequently,

Germany's future

resemble

countries

those

somewhat

more,

although^ the impressive growth

I do not

credit

consumer

they

cut

and

down

they

carry

incomes and in

con¬

sumption/which has taken place,
and

which will

tinue
of

undoubtedly

| take place.

Granted

just as easily in¬
type of expenditure.
Is an immediate

The

are

intro¬

run

the

lived,

You

temporarly euphoria cause losses
throw caution away,

ances^ etc., ijiq demands for con¬

ranh

which

or
'

for thjase who

what

but

behavior
sure

this inexpert
competitive pres¬

worse,

puts
other

lenders

the

Thus, losses become a na¬
tional problem, and . not just the
province of the prodigal lender.
same.

Again, the study's data
nificant.

losses

Average

sig¬

are

auto

whole were about 1.15%
in 1929-30.
But they were only
% of 1% for the Big Three, with
about $1 billion outstanding. That
as

for

means

companies'
ranged as high

must have
7% of out¬

losses

smaller

the

some

standings, to bring the average
Losses of this magnitude can
bankrupt a finance company or
wipe out depositor's funds ex¬
up.

•

The

twice

about

rate

average

sume.

mean

the

type of consumption
as
well as a general increase in
consumption.
This
shift
is
of
course

from

sumer

durable

non-durable

con¬

goods,

and ulti¬
mately to greater services as well.
To

date, in most European

coun¬

tries there has been

bias against
of

consumer

a
very strong
the free consumption,
durable goods.
The

of credit for

use

dura¬

consumer

clear

some

adhere to

quality and

Observations

Europe

recognition

offi¬

government

the

and

ad¬

that

fact

the

consumption revolution is on, that
strength
is
enormous
and
perhaps inevitable. The attitude
its

automatically
to

and

always
consumption

restrict

might well belong to
of

postwar

past period

development.

Along

with rising consumption in dura¬
ble goods, an extension of con¬
sumer
credit will
be necessary,
and is I believe equally inevitable.

conclude

European officials who look at

the

credit in Europe.

the U. S. experience will, I
think,
make several mental reservations.

asked

been

observations

some

the

wants

them.

have

cials

justment

which

establish

Some

European

charac¬

debt,

wise

and

think the major problem fac¬

ing

consumer

cultures

motor consumption,

total

numbers

look

rapidity.

the

fastest
in

the

Taking

immediate

the

closer

past

and

likely future of durable

consump-

tion I think

following

some

for

the

of the

OEEC

countries

be significant. Durable goods
consumption lor the years 1954,

may

and

1956, having risen 14%,
13.5%,
respectively,
to increases
in total
consumption for the same years
12.8%

and

compared
of

5.7%

4.2%,

same

and 3.9%. In the
the increase of Gross

years

National

Piqduct has been 4.9%,
6% and 3.6%.
In short, in the
face of policies designed to slow
the rate of durable consumption
and to subsidize non-durable

sumption, durable goods
has

tion
or

types.

nevertheless

times

four

risen

rapidly

con-

consump-

three

other

Specifically in the case of automobiles, increases in production
have been remarkable.
Comparing the second half of 1954, 1955,

was

government officials
some
aspects
of the
problem.
While
this
is
a
short
period

would like to tell you
in the hope that we
might t>e able to exchange some
I

study,

what I think,
views.

eignty,
The

sovereignty.
ask whether they

need

the

for

monly said,
strictions

consumer

view

pressure

Reserve

consumer

periodic

export

markets.

export, it is

makes

sover¬

the

com¬

domestic

consumption

re¬

desir¬

able.

„

make

would

it quite

wonder

this

so.

all

that C. I. T. Financial Cor¬

know that the heart of successful

has no intention of es¬
tablishing any business operations
of this type in Europe, and that

abroad
is
competi¬
tively priced product. Particularly
the motor industry but for
other durable consumer goods in¬
dustries as well, a large home
market provides that low unit cost

clear

poration

my
and

trip

exploratory
information

purely

was

for

purposes

only.

the

about

relevant

countries.

outsider,

that

mean

has

successful,

most countries .of Europe
in

which, par¬

Germany,

outstandingly

is
the

among

this

the postwar recovery

ticularly

Europe

similarity,

striking

very

least

which

observation

first

The
think

By this I
the

mean

economies

the

for

for greater

and

higher

for

multaneously,
tionary

expectations.

demands on
social

investment,

consumption

has

base which in fact makes

ful

exporting

true now,
time in a

and will be
common

Secondly,
it
to

possible.

natural

dampen

This

even

sector

created

si¬

infla¬

use, and
gerous

de¬

as politically dan¬
trying to reduce social

agricultural

subsidies

for example. But what really hap¬
pens

when the attempt is made to

reduce consumption by consumer
credit controls on durable goods?
Is

consumption as a whole really
reduced, or is its pattern changed?
Is
it
not
possible that money
which

pressures.

is not

services

cannot

spent

dura¬

bles will go for more non-durable

"Changes in the
Quality of Consumer Instalment Credit",
Part II,. Vol. I, P. 78 of the Federal Re¬
serve
Bank Study.
2 G.

Moore

al.

27%, 24% and then decreased 5%
compared
If

to the year earlier for

OEEC

the

countries

whole.

excluded

from

these

figures, the increases are
even greater, being 28%, 31% and
11%, all positive. Taking a look
at the period ahead, and again
using OEEC data, the estimate
for the period
1955-60 may be
summarized

follows:

the

per-

centage increase in total consumption

for

this

period is likely to
iwA
+v>o.
vicinity of 18% for the
OEEC countries. However, durable
goods consumption is estii^a

be in the

mated

increase

automobile

and
an

31%%

consumption

increase of 44%.

these

I could total

figures by groups of coun-

market.

because of inflation,
in Europe to want
some

to the year previous, autoproduction has increased

success¬

been mand, usually durable consump¬
in tion. This is the easiest lever to

resulted

greater

services,

for

has

rapid—almost revolutionary—

rises in the level of

competition

to be imported
domestic

capital

other

purposes, and serve to
supplement
the
available
local

are

from

capital.

page

Tax

Aspects of Depreciation

it be in equal annual amounts by

sioner of Internal Revenue in conthe straight-line method or in nection with the current study of
varying amounts following another useful
service
lives
note
that
Gf
the
recognized
methods
of shortening
of lives which they
allocation?

recommend

could

well

pro-

Pthis

* our tax law in tected by the removal of

The

Afferent,al tax treatment.

The

law

^Desirability of Simplicity

Tax depreciation to the extent

gave

possible. Here, too, recent changes
have a11 been in the right direcmethod, and for the sum-of-the- tion, I believe. The Internal Revedepreciation at double the rate to

used

under

the

straight-line

that

there is

absolute truth

perfect method

in income

recurring

remove

small

con-

deter-

mmation.

applied

£rvHy.

Eive

income which

tries, but the only point I would
again is that Germany is
likely to ran ahead of the average.
On the other hand,- there
is a danger that more backward
make

csts of both simplicity

measures

rome

law

tax

and

prevalent

fact

whether

difj4rence

the

flexipractice. The

different

methods,

reasonable

business

accounting

involve

they

between

FIFG

LIFO

inventory, or between declining-balance
or
straight-line
depreciation, limit the strict comof

Darabilitv

and

financial

difficulty, and
fascination of your profession. But
ease
0f statistical analysis should
the dominant criterion for

not be

laws which

may influence if not
determine business practices.

ft
the
can

axiomatic

capital
recovered, the

sooner

and

undertaken

easy

Thus,
faster

investment
more likely

that

believe

been intended to cover any new
ground. Depreciation accounting
is

statements

the

to-

add

tax laws which
capital recovery

the

financed.

eco—

short range of lives for each group
to take the Place of the almost
indefinitely
large
number " of
separate i t e m s and lives of
depreciable property now used. A.
Plan of this sort has been used in
Canada with apparent success.
.My remarks today have not

the

restrictive

unduly

was

hampered

bility

under

and

nomic policy has been advocated
by various taxpayer groups. This
would involve the establishment
°f a few broad categories of
property with useful lives or a

equally acceptabie under differing assumptions
and for different purposes. It was
feb; |bat the simple straight-line
method of depreciation which had
are

business accounting or for the tax

Europeans

and

obvious

troversies which have been too
Various alternative ac- frequent
in the past. A more
consumption with coiirlting methods, when consist- fundamental change in the inter-

,?/

ln
texiitic

Board

mists

capital

release

capital

consumer*

Gei many

next few years you Will catch up

eral countries and discussed with

afford

were

think

Possible should also be made to
specific statutory authority for the conform
to
the
criterion
of
Consumption ('declining-balance
method of simplicity to the greatest extent

Perhaps

credit executives, bankers, econo¬

yet

Continued

changes.

Europe, and I believe that

1956,

can

but

would

see

mobile

Federal

may

that
it

for

There have been

imports

purpose

years-digits depreciation method. «ue Service announced in 1953
These permitted more flexibility ?hat it would not require changes
and realism in depreciation than 1fl
estimates of useful service
-eV+hy last few years was possible under the traditional Jives of depreciable property un~
Italy. Yet in the rniy exce*
straight-line method.
I
do
not less major changes seemed to be
the rate of growth in Germany
need to emphasize to this group indicated. This policy is intended
has been

the

European countries, but in
country
there
has
been,
despite
a
general
shortage
of
money, a heavy inflow to this sec¬
each

The financial institutions

the

credit

the

tor.

important

for

terion

months

two

past

grees of success.
no

The facilities for providing con¬
sumer credit
vary greatly among

remark

tprmc
terms

First, I have said the social cri¬

the

growth will far outrun the growth
consumption.

woiild

.rise

have studied the question in sev¬

For

credit

•

Rising living standards

rapidly growing in¬
I think it would

stalment

criteria

loans."2

all

the

circumstances

economic
terized

high

con¬

shift

making an attempt to be able to
provide adequate capital for this
development, with varying de¬

use

abso¬

that

mav'^summarize ♦£ pi"'ison with Provisions'in othe'r
at teS" as I see counllies they were indeed very
at least
1
modest

1955

Dr.
Moore's
study
states, "The actual bad loan rate
I .on low downpayments would

sible to choose what he will

gener-

better than

these

The Rise in Motor

pos¬

one

payments.

use

subsidized.

of the surest invita¬
tions to losses is inadequate down

with

free

know

collection

conclude

figures

perhaps continued watching'. From

br°ad

developments
developments,

particularly in social
democratic
countries, non-dura¬
ble consumption has
actually been

before,

•

Nor

question of the quality of
needs better defining and

credit

should

sumer

ways,

•

The

denied.

will

and

cited.

bles has been restricted in various

credits

consumer

banks.
:

the

tended

•

caniiot

they be,
philosophy
really means anything, it mgans
that the purpose of production
is
consumption, and that the con¬

for the sales finance indus¬

paper

try

sumption

in my opinion should
for if our free market

situation

rather

are

alizations.

that

essential,

the

have

„

these

inflating, stationary
otherwise.
Not only will this
is

are

that

and

reasons

increasing

credit

consumer

lutely

ahead

longer run
consequences may be very harm¬
ful to economic development for

con¬

forces

controls

repayments

credits,

new

short

this rate of growth
of

there

consumption

liquor, tobacco,
expenditures,

may

this

crease

when

rise

indicated

in that order, to carry their debt.
It is logical that without debt to

rific

debt

transportation

duced,

and

well worth

area

study in Europe.
I am
impressed with a study I found
in Sweden, in which people with

saving

facilities

further

productive

production

know, but I would

suggest this is

enormously
powerfulXand even with periodic
problems of foreign trade bal¬

economy

capital formation

consumer

well?

certainly will remain
a
great * advantage.
The most striking aspect of this
European ^development is the ter¬

major factor in income deter-

mination. The funds arising from
depreciation, a non-cash expense
item> Provide a major source for
capital investment., These funds,
*n the long, run, are pot likely to
cover more than the replacement
of retired capital assets, and they
ma^
?
replacement
.

???d monertv^I?fn

°f Tft

Sfriv ^ahrl
wiliTmn ^

a.nd

facilitate
gen-

are

ElZl
JotablP

Thl

IS nf

ih7

preferable on grounds of
i
p r in r e«
economic policy to those which
o?d?na rv
L™ ww
defer it, since capital investment
the
letirmnent
in the long run is the basis for
^which most
greater productivity of labor and World War IlThev had few
higher standards of living. The
importance of tax depreciation is
h
tax rates became
verv
increased by the fact that book
hi h
d
the excess nrofito to*
depreciation is often made, by
th
economic analvsis of
%
management decision, to conform nation
as
well
L in iinanciai
finanrial
nation,
as
wen
as
in
to tax depreciation, and, in turn, analv *
and nlannW in n nnm
erally

?lld

dfnrpHftton

fp^ihlo

4..

decisions

retirement

and

re-

placement of depreciable property
are
often
made to
depend, il-

nanv

& I'
nients

Ld
f

vX fecurR.v an"

in
11G

™ a

logically but nonetheless actually, jmportant through
on
whether the old property has
on
been fully depreciated. Tax defiow of funds

Cos^^

preciation
might
be
directly or
The

tax

beyond

must

its

influence

Scome deter!

expected
logically.
laws

v *

have an
minati0n, and on decisions regardwhat
it
®
to
have in£ new Purchases of depreciable
property. To us in the Treasury,

thus

may

far

influence

t i

depreciation accounting

fair

depreciation

accounting

for

tax

wTcoBtlnuethtowel1 ,as economically sound, and mes is an immediate concern
bjj-jd
a^
least
until
too liberal depreciation is dis— through its effects on taxable 111—
a

common

market investment scheme

can

developed which will assist these
backward

countries

is6ofejouree oh^tous^atTt
great

benefit

countries that

the

members

observations

criminatory

favor

benefiting

groups

from

cbance for reai abuse

it.

those come

and tax

receipts.

But

tax

The depreciation is also of importance

arises from

because of its influence

the opportunity, previously men- book depreciation and through
advanced tioned, to apply a lower rate of book depreciation on the various
is of

they assist the more

backward
own

in-

this

goal,

these

data are first, that they probably
consumption, better vacations and
underestimate the rate of growth,
so forth, with no real diminution
of demand, no more savings, and and second, in order to accomplish

tax

the profit from the sale aspects of the country's economic
life to which I have referred

of depreciable property than was

applied to the depreciation deduc- above. In the brief time available
tions themselves. It is notable that I
many

recently

the
made

have not attempted to do

recommendations than set the problem of tax depreto

the

Commis- ciation into perspective.

The Commercial and Financial Chronicle
30

(30)

Thursday, January 2, 1958

* INDICATES

Now in Registration

Securities
Alabama Power Co.

Blacksmith Shop Pastries

(1/16)

$23,000,000 of first mortgage bonds due
1988
Proceeds—To finance construction program. Un¬
derwriter — To be determined by competitive bidding.
Probable bidders; Halsey, Stuart & Co. Inc.; Morgan,
Stanley & Co.; Lehman Brothers; The First Boston
Corp.;
Blyth & Co., Inc., and Kidder, Peabody &
Co
(jointly): Eastman Dillon, Union Securities
& Co. and Equitable Securities Corp. (jointly); Harriman
Riplev & Co. Inc. and Goldman, Sachs & Co.
(jointly). Bids—To be received up to 11 a.m. (EST) on
Jan. 1(5, at Room 1600, 250 Park Ave., New York 17,
20

Dec.

filed

N. Y.

(Walter H.)

Allen

Co., Inc.

for working capital.
Gould, Salem, Mass.

—None.

offer is subject to acceptance by

AILstate Commercial Corp., New

Septus

York

filed 256,300 shares of class A common

(par one cent), of which 233,000 shares are to
for account of the company and 23,300 shares

stock

be sold
for the

President' of the underwriter.
Proceeds—For working capital
Underwriter—

Supply Corp.
(letter of notification) 1,300 shares of common
stock (par $4). Price—At market (around $41 per share).
Proceeds—For working capital. Office—2020 Ridge Ave.,
Evahston, 111. Underwriter — Taylor, Rogers & Tracy,
Inc., Chicago, 111..
American Hospital &

Nov. 29

Israeli Paper Mills, Ltd. (1/6)
6,000,000 series B ordinary shares (par one
Ikrael pound per share). Price — $1 per share, payable
either in cash or in State of Israel bonds. Proceeds—For
expansion program. 'Office — Hadera, Israel.
Under¬
writer—Lee Higginson Corp., New York, on a best ef¬
American

Oct. 29 filed

forts basis.

American Life & Casualty Insurance Co.

Dec. 3 filed 101,667 shares of common stock (par $1) to
be offered for subscription by common stockholders at
the fate of one new share for each two shares held; un¬
subscribed shares to be offered to public. Price—$10 per
share. Proceeds—For capital and surplus accounts. Office

—Fargo, N. D. Underwriter—None.
.

American Mutual Investment Ce,, Inc.
Dec. 17 filed 490,000 shares of capital stock. Price—$10.20
per share. Proceeds—For investment in first trust notes,
.

second trust notes and construction loans. Company may

develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter — None,
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.
American Provident Investors Corp.
Feb. 15 filed 50,000,000 shares of common stock (par one

Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,
Tex. Underwriter—Peoples Securities Co., J. D. Grey,
H New Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
sent).

★ American Telephone & Telegraph Co. (2/7)
Dec. 31 filed $718,313,000 of convertible debentures to
be offered for subscription by stockholders at the rate
of $100 principal amount Of debentures for each nine
shares held; rights to expire on or about March 12,
1958. Subscription warrants are expected to be mailed
about Feb.

Price—100%

of principal amount.
subsidiary and associated
companies; for purchase of stock offered for subscription
by such companies; for extensions, additions and im¬
provements to company's own plant and for general
corporate purposes. Underwriter—None.
or

Proceeds —For

advances

★ Anderson Electric Corp.
Dec. 23 (letter of notification) 11700 shares of class B
common stock (par $1).
Price—-MWper share. Proceeds
7—To go to selling stockholders) Office — 700 N. 44th
Street, Birmingham, Ala. Underwriters—Courts & Co.,
Birmingham, Ala.; Wayne Hummer & Co., Chicago, 111.;
and Merrill Lynch, Pierce, Fenner & Beane, Birming¬
ham, Ala.
Anita Cobre II. S. A.,

Inc., Phoenix, Ariz.

30 filed 85,000 Shares of Common stock. Price—At
($3.75 per share). Proceeds—For investment in sub¬

Sept
par

sidiary and working capital. Underwriter—Selected Se¬
curities. Inc., Phoenix, Ariz

★ Arcod, Inc., Portland, Ore.
$4,000,000 of U-Haul fleet

Dec. 26 filed

Halsey, Stuart & Co. Inc.; Dillon, Read & Co. Inc. and
The Ohio Company
(jointly); Lee Higginson Corp. and.

Salomon

Bros. & Hutzler
(jointly); Eastman Dillon,
Securities
& - Co.
and
Glore, Forgan & Coi,
(jointly); White, Weld & Co.; Lehman Brothers/ Bids
—Expected to be received up to 11 a.m. (EST) on Jan.
7 at City Bank Farmers Trust
Co., New York.
Union

Commerce Oil Refinirig Corp.
16 filed $25,000,000 of first
mortgage bonds due
Sept. 1, .1868, $20,000,00 of subordinated debentures: due
Oct. 1, 1968 and 3,000,000 shares, of common stock .to be
offered in units as follows: $1,000 of bonds and 48 shares

20 filed

163,500 shares of common stock (no par)
exchange lor outstanding common stock

be offered in

of stock and $100 of debentures and nine shares of stock,
Price—To be supplied

holders of at least 90%

York.
★

Dec. 16 filed

Cadre

Industries

contracts.

rent.

Corp., New York

Offering—Expected in January.

;

;;

Credit Co.

(1/8)
\
'
Oct. 10 filed $50,000,000 senior notes due Nov. 1- 1977.
Price—To be supplied by amendment. Proceeds—To in¬
crease Working
capital. Underwriters—The First Boston
Corp. arid Kidder, Peabody & Co., both of New York.

Corp., Far Hills, N. J.

1,680,000 shares of common stock (par five
cents), of which 1,600,000 shares are to be offered in
exchange for oil properties located in Oklahoma, Texas,
New Mexico, Louisiana, Kansas and elsewhere; the re¬
maining 80,000 shares are to be issued as commissions.
Underwriter—Cador, Inc., Far Hills, N. J.
;

by amendment. Proceeds — To
Underwriter—Lehman Brothers, New

construct refinery.

(147,150 shares)
of outstanding MacGregor common
(which condition may be waived by BBC if offer is
accepted by at least 80% of outstanding MacGregor
stock). Underwriter—None.
/
Cador Production

Commercial

Commonwealth Edison

Co.

(1/14)

Dec. 19 filed $50,000,000 of sinking fund debentures due
Jan. 1, 2008. Proceeds—For construction program; Un¬
derwriter
To be determined by competitive bidding.

•

—

Probable

Corp.

bidders:

Halsey,. Stuart & Co. Inc.; The First
Corp.; Glore, Forgan & Co. Bids—To be received
to 10:30 a.m. (CST) on Jan. 14, 1958. at Room 1820,

Dec. 20

Boston

(letter of notification) not exceeding 2,000 shares
stock (par $10) to be offered for subscription
by employees. Price — $20 per share. Proceeds — For
working capital. Office—20 Valley St., Endwell, N. Y.
common

72 West Adams

Cambridge Electric Light Co. (1/20).
9 filed $4,500,000 of 30-year notes, series B, due
1988. Proceeds—To repay bank loans and for construc¬
tion. program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; and Coffin & Burr, Inc. and
F. S. Moseley & Co. (jointly). Bids—Expected to be re¬
ceived up to 11:30 a.m. (EST) on Jan. 20.
Dec.

.p*'-

Dec.

Statement effective Nov. 4.

—

Underwriters
Putnam & Co.Hartford, Conn.; Chas. W, Scran ton & Co., New Haven,
Conn.; and Estabrook & Co., Boston, Mass,
- "

mon

(letter

and

For

—

warrant.

one

working capital.

Price

—

Office

—

$20 per unit.
316 Johnston

Underwriter—J. C. Wheat &

Cop
"'''Hp'*"/

Offerings—Expected this week..

(par 20

cents) to be offered for subscription by common stock¬
on
the basis of one new share for each four

shares held.
ceeds

—

itures;
&

Price—To be

For

supplied by amendment. Pro-?
exploration activities and capital expend¬
Cuba.
Underwriter—H. Kobk

Office—Havana.

Co.,.Inc., New York.

•

;,-p:<:P-

•

;^Vp^vp'\

★ Consumer Finance Corp. of America
;
? ;
Dec. 27 filed $1,000,000 of capital notes due Feb.
1;
1973 (with detachable class A common stock purchase
warrants).
ceeds—To

Price—To be supplied by
reduce

bank

loans

and

amendment.

Pro¬

for working

capital;
Change in Name—Formerly People's Finance Corp. Of¬
fice—Denver, Colo. Underwriters—S. D. Fuller & Co.)
New York: and Paul C. Kimball & Co., Chicago, 111;
-Offering—Expected first week in February.

Champion Industries, Inc.

holders

Nov. 7 (letter of notification) 75,000 shares of common
stock (par 10 cents). Price—$4 per share. Proceeds—

Chess Uranium Corp.

• -

★ Consolidated Cuban Petroleum Corp. p,
Dec. 30 filed 500,000 shares of common Stock

Date indefinite.

22 Jericho Turnpike,

Corp.'

notification) 15,000 shares. of $ 1.40
sinking fund preferred, series A (par $20)',
warrants to purchase 15,000 shares of class B com.?
stock (par $1), to be offered in units of one pre-r

Richmond, Va.

Mortgage & Investment Corp.
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500,000 shares of common stock (par five cents) to be
offered in units of $100 of bonds and 10 shares of stock.
Price—$100.50 per unit. Proceeds—For purchase of first
mortgages or to make first mortgage loans and for con¬
struction business.
Office—Miami Beach, Fla
Under¬
writer—Aetna Securities Corp., New York. Offering—

Mineola, N. Y. Underwriter—Allstate Securities Inc., 80
Wall St., New York.
)

Credit

Bldg., Charlotte, N; C.

Central

—

ferred

general corporate purposes. Name Change—
Formerly Tybor Stores, Inc.
Underwriter — Lerner &
Co., Boston, Mass.

Office

Consolidated

with

Pro¬

For development and engineering expenses, raw mate¬
rials arid working capital. Business —■ Jalousies, storm

program.

cumulative

ceeds—For

windows, screens, etc.

Dec.

Proceeds

cents per share.

v"::;^"v

JT//,'"'--;:'•

construction

]

Price—52

Inc., Spokane, Wash.

★ Connecticut.Light & Power Co. (1/8)
Dec. i9 filed $30,000,000 of first and refunding
bonds,
series O, due Jan. 1, 1988.? Price — To be
supplied by
amendment. Proceeds
To repay bank loans and for

Stores, Inc., Agulrre, Puerto Rico
Dec. 2 (letter of notification) 247,560 shares of common
stock (par 50 cents) to be offered for subscription by
stockholders.

Fund,

(by amendment) 100,000 shares of capital
$1).
Price—At market. Proceeds—For in¬

(par

vestment.

Caribe

common

filed

stock

■

Canadian Prospect Ltd., Calgary, Canada
Sept. 27 filed 4,851,810 shares of common stock (par
16% cents) to be offered in exchange for capital stock
of Canadian Export Gas Ltd. on the basis of 2% Cana¬
dian Prospect shares for bach Canadian Export share,
subject to acceptance by holders of at least 80% of
Canadian Export shares outstanding. Underwriter—None.

Proceeds—For investment.

★ Composite

Canada Mortgage Bonds, Ltd., EngleWood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
tificates. Price — At par (in units of $250, $500 and
$1,000). Proceeds — For purchase of mortgage bonds.

Underwriter—None.

St., Chicago 90,111.

★ Commonwealth Stock Fund, Inc.,
San Francisco, Calif.
;
Dec. 26 filed (by amendment) 350,000 additional shares
of common capital stock (par
$1).
Price—At market.

Underwriter—None.

Continental

Mining & Oil C6tp.
(letter of notification) 250,000 shares Of common
.stock (par 10 cents).
Priee—$1 per share. Proceeds—For mining expenses. Office—1500 Massachusetts Ave j
nue, N., W., Washington, D. C. Underwrite!*^-E. L. Wolfe
Associates, 1511 K St., N.W., Washington, D. C.
Dec. 9

May 14 (letter of notification) 600,000 shares of common
(par $1—Canadian). Prices—50 cents per share
(U. S. funds). Proceeds—-For exploration costs^ etc. Of¬

: Cooperative Grange
League Federation,Ind.
Sept. 27 filed $600,000 of 4% subordinated, debentures

fice—5616 Park Ave.*
Jean R. Veditz Co.,

ferred

stock

Montreal, Canada. UnderwriterInc., 160 Broadway, New York.
Offering—Expected at any time.
Colonial Aircraft Corp., Sanford, Me.
July 5 filed 248,132 shares Of common stock (par 100).
Price—At

market.

Proceeds—To

selling stockholders.
Underwriter—Glick & Co., Inc., New York. Statement
effective Aug. 10.

Nov, 29 (letter of
notification)^ $300,000 of 6% 5-year
convertible sinking fund debentures
(subordinated) due
Jan. 1,1963 and 30,000 shares of commOn stock (par one

-Ar Colonial Fund, Inc., Boston, Mass.
Dec. 16 filed (by amendment) 2,000,000 additional shares

cent) to be offered in Units of $100 of debentures and 10
shares of stock. Price—$iod per unit. Proceeds—To re¬
tire bank loan and for working capital. Business —

—For

of common Stock

(par $1).

Price—At market.

Proceeds

investment.

Columbus Electronics Corp.

due Jam

1, 1966;' 10,000 shares. of 4% cumulative pre¬
stock par $100;, and 150,000 shares Of common

stock (par $5). Price—At principal amount or par value;
Proceeds—To finance inventory purchases, to make cap-*
Ital loan advances to retail subsidiaries; to reduce bank

loans; and for working capital.

Office

—

Ithaca, N. Y.

Underwriter—None*
Cubacor

Explorers, Ltd.

Oct. 28 (letter of notification) 600,000* shares of cbirimori
stock (par $1 -Canadian). Priee^-50 cents per share-U, S;
funds. Proceeds >^- For exploration, and drilling costs.
Office —^ Suite 607, 320 Bay St.,

Underwriter—Stratford
way,

New York.

Dalton Finance,

Toronto, Ont, Canada.
Securities Co., Inc., 135 Broad¬

Manufactures and rents commercial coffee brewing ma¬
chines. Office—515 Madison Ave., New York.
Under¬

Nov, 13 (letter of notification) 110,000 shares of class A
common
stock (par 10 cents). Price—$2.50 per share;
Proceeds — For working capital. Office —1010 Sawmill

Nov. 27 filed

Inc., Mt. Ranier/ Md.
" / p
$500,000 of 7.% subordinated ?10-year' de¬

bentures

Jan.

writer—Willis E. Burnside & Co., Inc;, New York.

River

Price—At par

Dec.

owner

Proceeds—To increase number of trailers available for
Bamm

Underwriter—Mann

of MacGregor Sport Products, Inc. at rate of one share
of BBC stock for each share of MacGregor stock.
The

account of Ben Degaetano,

Price—$1.50 per share.
to be used in realty financing activities.
Midland Securities., Inc., New York.

filed $14,000,000 of first mortgage bonds due
Proceeds—To reduce bank loans. Underwriter—To
be determined by competitive
bidding. Probable bidders:

Brunswick-Balke-Collender Co.
Dec.

1988.

Brantly Helicopter Corp., Philadelphia, Pa.
21,818 shares of common
(par 50 cents). Price—$13.75 per share. Proceeds
—For equipment, supplies and working capital. Offices
—24 Maplewood Ave., Philadelphia 44, Pa., and Fred¬
erick, Okla. Underwriter—None,

Both of

Columbus & Southern Ohio Electric Co. 11/7)
Dec.

Nov. 25 (letter of notification)

(letter of notification) $150,000 of 10-year 6%
unsecured debentures, due Nov. 1, 1967, to be offered to
stockholders. Price—At par (in units of $1,000). Proceeds
—*For construction of a new addition to present building.
Office—6210 Denton Drive, Dallas, Texas. Underwriter

REVISED

New

stock

Nov.

ITEMS

PREVIOUS ISSUE

Cryan & Co. and Mortimer B. Burnside & Co.
York, N. Y.:
\ •

Inc., Rockport, Mass.

Sept. 17 (letter of notification) $100,000 of 6Vz% deben¬
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered
in units of one $50 debenture and 20 shares of capital
stock. Price—$90 per unit. Proceeds—To retire mort¬
gage notes and

ADDITIONS

SINCE
•

Road, Yotikers, N. Y. Underwriters-McLaughlin,

due

2v/vl9fi^.^(with''wfiti^ts-^altoche8)r«

(in denominations of $100 each).

Pro-

Volume

187

Number 5704

ceeds—For

The Commercial and Financial Chronicle

expansion, making of loans and to

short-term

debt.

Underwriter

reduce

expansion

McDonald, Holman &

—

Co.,.Inc., New York.-:,..

Daybreak Uranium, Inc., Opportunity, Wash.
7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents pei

selling

stockholders.

•

Underwriter

Herrin Co., Seattle, Wash.

Inc.
Aug. 28 (letter of notification) 25,000 shares of common
stock (par $1) to be offered to employees and
present
stockholders. Price—$11.80 per share. Proceeds—To ac¬
quire new machinery and equipment. Office — 530 N
Wheeler St., St. Paul 4, Minn.
Underwriter—None.

Disc, Inc.,, Washington, D. C.
Oct. 10 filed 400,000 shares of class A

$1).

Price—$2.50 per share.

stock

Dow
Nov.

Proceeds—For investment.

filed

84,121

week of Jan. 20.

working capital.
Business
Building
Underwriter—American Underwriters, Inc.,

Dixon Chemical & Research, Inc.

Price—To

one

new

for

supplied;, by

was

1957.

Electro Precision
Corp., Arkadelphia, Ark.
(letter of notification) 60,000 shares of common
stock (par $1).
Price—$4 per share. Proceeds—For office
and

laboratory equipment;
inventory, working capital,
Underwriter—Nunn-Groves Co., Little Rock, Ark.

etc.

Ex-Cell-0 Corp.,
25 filed 88,000

stock

common

the

$4,000,000

by The

These

assumed

Dobeckmun

Co.,

the

by Dow Chemical Co.

debentures

held

are

held.

timer B. Burnside &

Co., Inc., New York.

fective Dec. 26.

•

amendment.-- Proceeds—For

'V *!'

ISSUE

January 3 ' (Friday) v
Wisconsin Southern Gas

insurance

outstanding.

Co., Inc.-J---Common

(letter of notification) 60,000 shares of
common
$180,000 of 6% redeemable debentures
15, 1967. Price—Of stock, $2 per
share;
of
debentures, at par. Proceeds—For exploring and de¬
veloping mineral properties with objective of
producing
expanded shale. Office—728-29 Symes
Bldg., Denver 2
stock (par $1) and

maturing Dec.

Statement ef-

January

•

(Lee

•-

(Monday)

Higginson Corp.)

(Philipson

Co.)

First

Corn,

(Bids

Morgan 'Stanley
,$150,000,000

(Bids

EST)

Co.)

$14,000,000

Peabody

•

World mark. Press, Ire
vV.
rJ- A
Winston

January 8

Inc.)

EST)

Co.;

National

Finance

S50,000.000

&- Co.)

Peninsular Metal
)Wm.

Roney

Co.)

(Bids

EST)

noon

January 9

65,000

Shell

(Offering

Marks &

February 18

Inc.;

(Bids

Co.)

Weld & Co.;

$30,000,000

(Bids to

—.Common
•

Gulf

•'

Iowa Power & Light Co
-O*

Power

Ohio

to be

Power

invited)

(Bids

8:30

(Bids

Central

(Hairiman

Co.

8:30 a.m.

(Bids

Co.

Southern: New

S4.000.000

noon

(Olfering
p.

Royal

Dutch

&
to

a.m.

Public

Petroleum

Inc.)

Service

Bonds

$15,000,000

Bonds

EST) $30,000,000

Notes

(Bids

Bonds

$35,000,000

March

invited)

(Bids 11

Bonds

$21,500,000

a.m.

EST)

$8,500,000

Corp., New York

ceeds—To

the

common

A stock

B stock

(no par)
(par $1). Pro¬

Attorney General of the United States.

and

Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids — Had been
(EDT) on May
W., Washington 25,
bidding has been postponed.

General Automatics Corp.,
Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $.1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls; and for other corporate purposes. Ad¬

dress—c/o Positronic
June

Appalachian

Electric

Corp., 2572 Ridgemore Road. N. W.,
Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,

(Tuesday)

Power

Co..

■

11:30

Debentures

$9,000,000

(Thursday)
EST)

1,537,500 shares of

D. C., but

Bonds

a.m.

Underwriter—None.

scheduled to be received up to 3:45
p.m.
13 at Room 654, 101 Indiana Ave., N.

(Wednesday)

$250 each). Pro¬
Office—129 North Center

working capital.

Street, Reno, Nev.

ton

Bonds
to

cates of indebtedness payable on or before Dec.
31, 1963.
Price—At par (in denominations of

Underwriter—To be determined by competitive
bidding.
Probable bidders: Blyth & Co., Inc., and The First Bos¬

(Tuesday)
$30,000,000

if Funding Co., Reno, Nev.
Dec. 23 (letter of
notification) $50,000 of 5Yz% certifi¬

and

Georgia Power Co.—

(Bids

Office—Brooklyn, N. Y. Underwriters—Alfred L.
Co., New York; and H. Carroll & Co.;
Denver,
Offering—Expected in near future.

Jan. 14 filed 426,988 shares of

(Monday)

Common

West Texas UtUities Co

of company's
products, working capital, addi¬
inventory and accounts receivable, for research
development and for other general corporate pur¬

General Aniline & Film

invited) $10,000,000

invited)

(Bids

(Offering to stockholders—to be underwritten in U. S. by Morgan
*
Stanley & Co.) 7,602,285 shares

Debens.

$30,000,000

Iowa Illinois Gas & Electric Co

-Common
shares

and

ceeds—For

(Wednesday)

March

$4,500,000

165,625

Laboratories, Inc.
Aug. 28 filed 200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬

Colo.

Ohio Edison Co

Research, Inc..:
& Co..

stock issuable under said
program.

poses.

(Tuesday)

England Telephone Cp._

(Bids to be

.Debentures

stockholders—underwritten

Brooks

$29,000,000

$23,000,000

EST)

17 filed $60,000,000 of
participations in the com¬
pany's Savings and Stock Investment Program for Sal¬
aried Employees, together with
1,500,500 shares of com¬

tional

Service Co

(Monday)

Electric Light

Dixon Chemical

$8,000,000

Bonds

invited)

March 5

(Bids ±x:30

—.Bonds

$40,000,000

-Bonds

EST)

—

Forest

(Monday)

(Bids to be invited)

Iowa

(Thursday)

Jani-^ry 20

Cambridge

EST)

a.m.

March 3
Preferred

—

a.m.

February

Bonds

$10,000,000

Inc.)

Underwriter

if Ford Motor Co., Dearborn, Mich.

mon

(Thursday)

Cleveland Electric Illuminating Co

—Preferred

Inc.)

& Co..

(Bids

$15,000,000

PST>

Ripley '&

Power

$10,000,000

$1,248,000

—

PST.i

January 16
Alabama

(.Bids
.

West Virginia Pulp & Paper Co.
•'

Illinois Public

Trust Ctfs.

_______Debentures

a.m.

McDonough, N. Y.

Powell

West Coast Telephone Co.—
(Blyth

Bonds, Etc.

invited)

February 25

Claybaugh & Co.)

Pacific Power & Light Co
.

_____

(Bids

$5,000,000

$3,450,000

Co.

Light

$7,500,000

Pennsylvania Electric Co

(Wednesday)

and Elair F.

—

Philipson & Co., Utica, N. Y.

motion

Equip.

Service

Water

(McDonald & Co.

Pacific

Co.i

(Bids

Co
(Bids

•

Pacific

$100 per unit. Proceeds—To repay $90,000 of notes and
for general corporate
purposes. Business—Financing of
homes.
Office

(Wednesday)

February 20

■

____—V__—Preferred
&

January 15
Missouri

.Common

shares—

.Preferred

February 24

$50,000,000

CST)

Leases, Inc. (1/6)
of notification) $250,000

(letter

of class A common stock

(Tuesday)

invited)

of 6% sub¬
ordinated debentures due Jan.
1, 1968 and 12,500 shares
(par $1) to be offered in units
of a $100 debenture and five
shares of stock. Price—

(Tuesday)

a.m.

Barney

Ford Home

Nov.

Price—$3
Proceeds—For exploration work and work¬
capital.
Office—Portland, Ore.
Underwriter—To
be named by amendment. Sol
Goldberg is President.

$12,600,000

Northern Illinois Gas Co

Commonwealth Edison Co,——Bonds Debentures

(Smith,

York

'<•

Dec.

White,

10:30

New

•«"

ing

Bonds

February 19

(Monday)

January 14
(Bids

*•

share.

per

$720,000,000

Trading Co,, Ltd

Gulf States Utilities

(A<$tna Securities Corp.) $288,000

about

(Friday)

underwriting)

■'

^■■

$25,006,000

holders

Microwave

None.

if Fluorspar Corp. of America
Dec. 26 filed 470,000 shares of common
stock.

underwriting)

EST.)

Bruce

expansion and other x»rporate purposes^' Underwriter—

340,000 shares

$4,620,000

(Kidder, Peabody & Co.; Blyth & Co.,

J-V-M

——Bonds
$12,000,000

Electric

noon

Whitmore,

(Friday)

EST)

a.m.

Transport &

Equip. Trust Ctfs.

(Thursday)

January 13

(Tuesday)

invited)

February

Washington Water Power Co.—.-Bonds & Debens.
Laurence M.

Michigan

Equip. Trust Ctfs.

and

—

First National Life

—————————Common

(B'ds

Preferred

S3.975.000

CST)

noon

properties.
Underwriter
Co., Washington, D. C.

Insurance Co., Phoenix, Ariz.
July 29 filed 106,500 shares of common stock (par
$4),
of which 90,000 shares are to be
offered publicly and
16,500 shares to employees pursuant to stock
purchase
options. Price—To public, $12 per share. Proceed*—For

February 13,,(Thursday)

Chicago, Rock Island & Pacific RR.
(Bids

——Equip. Trust Ctfs.

stockholders—no

Indiana

Common

Pittsburgh & Lake Erie Ry.—

Telephone & Telegraph Co.. .Debentures

$750,000

Products Corp.—

purchase

$3,435,000

American

Estabrook

Baker, Simonds & Co.) $200,000

—

invited)

February 7

—_______—Preferred

Simonds

(Thursday)
Equip. Trust Ctfs.

(Offering

and

National Finance Co.

•

Utilities
(Bids

$30,000,000

(Baker,

February 4
(Bids

Texas

——Bonds
& Co.;

First Leaseback
Corp., Washington, D. C.
27 filed 500,000 shares of class A
common
stock
(par five cents). Price — $5 per share. * Proceeds
To

$5,000,000

(Bids to be invited) $5,700,000

——Notes

Co.)

Preferred

Great Northern Ry

;;

Bonds

and Kidder, Peabody & Co.)

■

$24,500,000

Chas. W. Scranton

$4,140,000

Central Power & Light Co..

Connecticut Light & Power Co
(Putnam

(Bids

$300,000

Commercial Credit Co
(first Bostorf Corp.

Equip. Trust Ctfs.

Baltimore & Ohio RR

and
/

—

★ First Investors Corp., New York
Dec. 16 filed (by
amendment) $100,000,000 periodic pay¬
ment plans (DW and
DWH) and single payment plans
(DWP). Proceeds—For investment.

$10,000,000

Brothers)

Englewood, Colo. Underwriter
Underwriters, Inc., Englewood, Colo.

Nov.

(Wednesday)

noon

Chicago, Burlington & Quincy RR.—±~
(Bids

invited)

January 23

——-Common

&. Co..

Bonds

Portland Gas & Coke Co

Bonds

& Co.;
shares

115,000

(Lehman

Minnesota Mining & Manufacturing Co.—Common
(Goldman*-Sachs & Co.; Kidder,
Piper, Jalfray & Hap\vood)

—

Bannock St.,
American

(Wednesday)

(Bids noon EST)

(Tuesday)

a.m.

__Bonds
$75,000,000

Norfolk & Western Ry

-Bonds

Columbus & Southern Ohio Electric Co
.

First International Fire
Insurance Co.
Aug. 26 (letter of notification) 100,000 shares of
common
stock (par $1). Price—
$3 per share. Proceeds
For
capital and surplus and for first year's deficit. Office—

$30,000,000

PST)

a.m.

January 22

Inc.)

Iowa Power & Light Co.—

and

January 7

Tr. Ctfs.

$4,500,000

Debentures

Co.,

8:30

(Bids

Bank for Reconstruction and
Boston

invited)

3395

Development ("World Bank*J)_______~
(The

notification) 5,000 shares of common
Price—$6.67 per share.
Proceeds—To selling
Office—922 Jefferson
St., Lynchburg, Va.
Underwriter—Whitney & Co., Inc., Washington, D. C.

$250,000

Albuquerque,

stockholder.

Pacific Gas & Electric Co

Ltd.__Series B ord.
$6,000,000

Co.,

Ford Home Leases, Inc.-__-Debentures & Common

International

(Blyth

American.-Israeli Paper Mills,

(Stock.

(Tuesday)

Kimberly-Clark Corp.

Underwriter—Minor, Mee

Famous Virginia Foods
Corp.
Nov. 6 (letter of

Chicago, Burlington & Quincy RR.__Equip.
(Bids

Underwriter—None.

Expanded Shale Products Inc.
Nov. 26

January 21

(Offering to common stockholders—underwritten by the
Milwaukee. Co.: Harley, Hayden & Co.; and Bell &
Farrell,
; • /
* •; V
Inc..) 8309,232

rate of
an Ex-Cell-O share
for each full
Bryant
Offer will become effective
upon acceptance by
holders of not less than
209,000 shares (95%) of all com¬
mon stock of
Bryant

CALENDAR

(par $3)
Bryant

stock of

Springfield, Va.,

four-tenths of

Colo.

NEW

stock

common

share.

Duraloy Co., Scottdale, Pa.
Nov. 12 filed 69,000 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—For
modernization and improvements.
Underwriter—Mor-

Detroit, Mich.

shares of
be offered in exchange for
Chucking Grinder Co. of

(par $5),
4% sub¬

liability of
of Aug. 31,

three

material.

Englewood,

Statement effective Dec. 11.

Oct. 30

companies.

(1/20-24)

four

each

—

Colo.

•

Dec. 24 filed 165,625 shares of comniori stock
(par $1)
be offered for subscription by common stockholder

expenditures

and

Nov.

conversion

upon

which

Chairman.

rate

Minnesota, Inc., Denver, Colo.
Sept. 23 filed 750,UU0 shares of common stock
(par $1).
Price—$2 per share. Proceeds—For capital

Chemical Co.

inally issued

and development qf real
property,
acquisition of stock of business enterprises. Under¬
Irving Lichtman is President and Board

the

Durox of

—

Co., Inc.,

ordinated convertible debentures due June
1, 1980, orig¬

(par

writer—None.

derwriter—None.

Business—Purchase
and

Brooks

presently outstanding. Price
share).
Proceeds—For construction
operation of motels and to repay bank loans. Un¬

issuable

common,

Offering—Expected

Office

purpQses.

Motels, Inc., Kansas City, Kan.
Oct. 25 filed 500,000 shares of common
stock, of which
426,497 shares are to be offered
publicly, 39,568 shares
are to be offered in
exchange for $432,055 outstanding 6%
deberitures, 3,085 shares are to be issued as a stock divi¬

and

corporate

dend and 30,850 shares are
—At par ($15 per

DeLuxe Check Printers,

general

Underwriter—P.

Doctors'

May

share). Proceeds—To

and

Clifton, N. J.
New York.

^7.

(Bids to be invited)

Bonds

Ga.
'

$25,000,000

Continued

page

The Commercial and Financial Chronicle
32

Continued f rom page

Dec. 23 filed 50,000 shares of

$2,000,000 of 6% subordinated sinkdue Sept. 1, 1971, with detachable
warrants to purchase 160,000
shares of participating
preference -stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit.
Proceeds—
For expansion and*working capital. Underwriter
None
named.
Offering to be made through selected dealers
Application is still pending ^sith SEC.
Aug. 17, 1956 filed

ing fund debentures,

Parking, Inc.

General

June 18 (letter

shares of common

of notification) 240,000

stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬

poration and for working capital. Office—c/o Edwin
Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co„ Las Vegas, Nev.

Genie Craft Corp.

Aug. 8 (letter of notification) $100,000 of 10-year .6%
convertible debentures and 120,000 shares of common

units of one $50
stock. Price—$100
per unit. Proceeds—To discharge short term obligations;
purchase merchandise inventory; and for working cap¬
ital. Office — 1022 18st St., N. W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.

stock

to be offered in

(par 10 cents)

debenture and 20 shares of common

Gold Seal Dairy

Products Corp.
Oct. 25 filed 175,000 shares of class A stock (par 10
cents)
of which
15,000 shares are to be reserved
for prior offer to employees.
Price — To „ foe sup¬
plied by amendment. Proceeds—To acquire outstanding
stock of Kulka Electric Manufacturing Co., Inc. Office

Underwriter—Amos Treat & Co., Inc.,
Offering—Indefinitely postponed.

—Elizabeth, N. J.
New York.

Divide Oil Corp.

Great

300,000 shares of common
Price—$1 per share. Proceeds—

Oct. 11 (letter of notification)
stock

(par 10 cents).

balance on oil and gas properties, and unsecured
notes and for drilling and working capital. Office—207
Newhouse Bldg., Salt Lake City, Utah.
Underwriter—
Birkenrnayer & Co., Denver, Colo.
To pay

Great Northern

Life Insurance Co.

(letter of notification)

Oct. 7

44,400 shares of common

(par $1). Price—$6.75 per share. Proceeds—For
capital stock and unassigned surplus. Office — 119 W.
Rudisill Blvd., Fort Wayne, IndL Underwriter—North¬
western Investment Inc., Fort Wayne, Ind.

stock

Guardian Insurance Corp., Baltimore, Md.

cumulative preferred stock

Price—To be supplied by amendment. Pro¬

(par $100).

Washington, D. C,

General Credit, Inc.,

(1/14)

Power & Light Co.

Iowa

ceeds—For construction

Underwriter—Smith,

program.

Thursday, January 2, 1958

Power &

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.: Kidder, Peabody & Co.; White, Weld & Co.; The
First Boston Corp.: Equitable Securities Corp. Bids—To
tion program.

be received on Jan. 22.

•

C.
Ally 30 filed $10,000,000 of 5/2-8% sinking fund deben¬
tures due Aug.
1, 1972 and 100,000 shares of common
itock (par 20 cents) to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture
and one share of stock. Price—Par for debenture, plus
f2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other capital im¬
provements; for retirement of present preferred shares;
and for working capital, etc. Underwriter—None.
Janaf,

Inc., Washington, D.

Lyons, III. (1/13)
(letter of notification) 96,000 shares of common
stock (par 25 cents). Price—$3 per share. Proceeds—To
repay bank loans and for general corporate purposes.
Office—4633 Lawndale Ave., Lyons, 111. UnderwriterAetna Securities Corp., New York.
*
' , '
if J-V-M Microwave Co.,
20

Dec.

it Kimberly-Clark Corp., Neenati, Wis. (1/21-22)
$30,000,000 of sinking fund debentures due

Dec. 31 filed

1, 1983.
Price — To be supplied by amendment.
general corporate purposes. Underwriter
—Blyth & Co., Inc.; San Francisco and New York.
Jan.

Koeller Air Products,

Electric Light Co.

Oct. 8 filed $2,400,000 of 3% secured debentures,

series
A, due Aug. 1, 1967, being offered in exchange for 3%
first and general mortgage bonds, series D, due May 1,
1982, of Connecticut Power Co. on a par-for-par basis
Underwriter

27.

—None.

if Hill-Valentine Oil Co., Edgemont, S. D.
23 /letter of notification) 31.585 shares

Dec.

mon

stbck.

For oil
-

Price—At

development.

par ($1 per share).
Underwriter—None.

com¬

Proceeds*—
'

Hofmann

Dec.

Industries, Inc., Sinking Spring, Pa.
filed 227,500 shares of common stock (par 25

cents) to be offered in exchange for outstanding

common

chares of Van Dorn Iron Works Co. Underwriter—None.

Lorain Telephone Co.,

common

stock

five shares held.

stockholders

offered to

$6 per share at the rate of two

—Fort

new

shares for each

Proceeds—For

Lauderdale, Fla.

working capital.
Underwriter—None.

Office

market.

Proceeds—For

investment.

$1)

Distrib¬

Manager—Horace Mann Investors,

Inc., Deg Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St., Springfield, III.
Horlac

Mines, Ltd.
(letter of notification)

Nov.

mon

stock.

Price—At

par

($1

300,000 shares of
per

share).

com¬

Proceeds—

repay loan, to purchase equipment and machinery
and for working capital. ^Office—1551-A
Eglinton Ave.

West, Toronto 10, Ont., Canada.
& Co., Inc., Buffalo, NY

Underwriter—D'Amico

Indiana & Michigan Electric Co. (2/13)
Dec. 20 filed $25,000,000 of first mortgage bonds
r

1988.

Proceeds

—

For reduction

bank

due

loans and for

construction program.

Underwriter —To be determined
by competitive bidding. Probable bidders: Hafsey, Stu¬
art & Co., Inc.; Harriman
Ripley & Co. Inc.; The First
Boston Corp.; Eastman
Dillon, Union Securities & Co,
Bids

the

rate

one

Price—$28

held.

new

each

for

share. Proceeds—
Office—203 West 9th

per

For additions and improvements.

Tentatively expected to be received
(EST) on Feb. 13, 1958.
—

/■JS/'-

it Multnomah Kennel Club, Fairview, Ore.
Dec. 26 filed $250,000

of 10% unsecured debentures and

400,000 shares of class A non-voting common stock (par

$1) to be offered in units of $250 of debentures and 400
class A shares.
Prices—$910 per unit.
Proceeds — To

bank loans and shprt-term unsecured notes.

repay

noon
*

International Staple & Machine Co.
Oct. 14 (letter of Notification)
20,000 shares of 6% cumu¬
lative preferred stock of which 10,000 shares are to be
offered to the public and the remainder to stockholders
of record Oct. 10, 1957 in exchange for seven shares of
for each share of preferred
Both subscription
and tenders for exchange must be received on or before

Municipal Investment Trust Fund,

(N. Y.)

Inc.

May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.
Sponsor—Ira Haupt & Co.,
New York.

///

'■//.

Nassau

Fund, Princeton, N. J.

May 8 filed 250,000 shares of common stock. Price—At
market.

investment.

Proceeds—For

Office—10

Investment Advisor

St., Princeton, N. J.

Hoisington, Inc., same address.
National

Sept. 10

Biochemicals,

—

//•;

Inc.

Office—Room 202 Houston Title Bldg.,
Co., Inc..

porate purposes.

Houston, Tex. Undervariter—Scott Taylor &
New York, N. Y.
National
Dec.

Inc., Cleveland, O.

Bowlero,

filed

$900,000 of 5%

10-year debenture

stock

150

and

Mines, Inc., Kellogg, Idaho
June 3 (letter of notification) 800,000 shares of common
stock. Price—At per (17% cents per share). Proceeds
—For mining expenses.
Office—Sidney Bldg., Kellogg,
Tdaho, Malcolm C. Brown is President. Underwriter—
Standard Securities Corp.,
Idaho.

Spokane, Wash., and Kellogg,

Underwriter
Francisco, Calif.

cisco, Calif.
San

—

Guardian Securities Corp.,
.

To be

Price—$19,500

Detroit, Mich. (1/8)
shares of 6/4% cumulative preferred
stock (with warrants.to purchase 112,500 shares of com¬
mon stock) and 40,000 shares of common stock (par $1),
the latter to be sold for account of five selling stock¬
holders.
Price
Of preferred stock, at par ($10 per
National

Finance Co.,

—

share); and of common stock, at $5 per share.

Proceeds
Underwriter—Baker, Simonds &

woufcing capital.
Co., Detroit, Mich.

National Lithium Corp., New York
Feb. 19 filed 3,120,000

shares of common stock (par one
Price—$1.25 per share. Proceeds—For acquisi¬
of properties; for ore testing program; for assess¬

cent).
tion

the Yellowknife properties; and for cost

concentration plant, mining equipment, etc.

pected to be amended.
Natural Gas Pipeline Co. of America
Nov. 19 filed
due

1977.

Co.

Read

$40,000,000 of first mortgage pipeline bonds

Price—To be supplied by amendment. Pro¬
reduce bank loans.
Underwriters — Dillon,
and Halsey, Stuart & Co. Inc., both
Offering—Temporarily postponed.

Inc.

of New York.

Nichols, Inc., Exeter, N. H.
Nov. 14 filed 25,000 shares of common stock

(no par).

share. Proceeds—To repay short term
bank loans and for working capital. Business — Sella
Price—$27

per

supplied by amendment. Proceeds — To
director of company.

Underwriter—None.'

hatching eggs and day-old chicks.

George E. Coleman, Jr., is President.
North American Finance Co., Phoenix, Ariz.

shares of class B.

Nov.

Underwriters—Goldman, Sachs & Co. and Kidder, Peabody & Co., both of New York; and Piper, Jaffray &
Hopwood, Minneapolis, Minn.

Price—$5 per share. Proceeds—For working
capital and other corporate purposes. Underwriter—
None.
Sales to be made through Eugene M. Rosenson,

it Modern

Sports

Enterprises,

Price—$1.35

working capital, etc.
N.

per

Proceeds—For

share.

Office—116 Nassau St., New York,

Underwriter—None.

(letter

notification)

approximately

6.600
shares of non-assessable common stock (no par) to be
offered to employees pursuant to a stock purchase plan.
Price—At market (estimated at $45 per share).
Pro¬
ceeds—To

reimburse

the company

chasing the securities.
Mont.

for the cost of pur¬
Office—Electric Building, Butte,

Underwriter—None.

Monticello Associates,

Inc.
Feb. 18 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share).
Proceeds — For
capital expenditures, including construction of motel
roadside restaurant and

station. Business—Has been
processing and selling of gravel. Office-—203 Broadway.
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.
gas

Mortgage Clubs of America,

Inc.

Aug. 19 filed $1,000,000 of participation units in second
mortgages of real estate to be offered for public sale in
units of $100, plus a sales commission of $10 per unit
to the company. Proceeds—To be invested in small loans
secured by second mortgage on home properties. Office
—Springfield, Mass. Underwriter—None. Charles Hershman

common

stock

Treasurer."

Nuclear Science & Engineering

is President.

Corp.

Sept. 20 filed 100,000 shares of common^stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To

★ Montana Power Co.
Dec.

300,000

(par $1).

President, and Marcus T. Baumann, Vice-President and

Inc.

(letter of notification) 196,500 shares of'preferred

(par $1).

filed

Estate of John C. Dwan, a former

prepay

indebtedness

Nordep-Ketay Corp., to
capital.
& Co., New York. Offer¬

purchase additional equipment and for working

Underwriter—Hayden,

Stone

ing—Temporarily postponed because of market
it Ohio Water Service Co., Struthers, Ohio

(1/15)
$1,248,000 of convertible subordinated de¬
bentures due 1977. Price—At 100% of principal amount"
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriters—McDonald & Co., Cleveland, Ohio,

Dec.

23 filed

and

Blair F.

Oil

Claybaugh & Co., Harrisburg, Pa.

Mineral

Nov. 4 (letter of
stock

(par $1).

Operations, Inc.

notification) 100,000 shares of common
Price—$2.50 per share. Proceeds—For

development of oil

and mineral properties.

Office—208

Wright Bldg., Tulsa, Okla. Underwriter—Universal Se¬
curities Co., 201 Enterprise Bldg., Tulsa 3, Okla..
Old American

Life Co.,

Seattle, Wash.

Julv$22 filed 15,825 shares of class A stock (par $10) and
3,165 shares of common stock (par $10) to be offered in
units

one

common

and

three

class

shares.

Price—$260 per unit.

Proceeds — For working capital
and other corporate purposes. Underwriter—None.
it Pacific Gas & Electric Co.
Dec.

(1/21)

filed $75,000,000 of first and refunding mort¬
bonds, series CC. due Dec. 1, 1978. Proceeds—To

writer— To

purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.

condi¬

tions.

retire bank loans and for construction program.

Underwriter—None.

Under*

writer-^Gearhart & Otis, Inc., New York. Statement ex¬

Minnesota Mining & Manufacturing Co. (1/7)
Dec. 10 filed 115,000 shares of common stock (no par).
—

stock.

Skirball is President.

ceeds—To

if Mercantile Acceptance Corp. of California
Dec. 19 (letter of notification) $21,000 of 6% 15-year
capital debentures. Price—At par. Proceeds—For work¬
ing capital. Office—333 Montgomery Street, San Fran¬

common

Proceeds—For erection and operation of two
bowling sports centers. Underwriter—None. William N.

For

ing, Pittsburgh 19, Pa.

bonds,

unit.

per

—For

com-''

100,000 shares of

(letter of notification)

stock (par 10 cents). Price—$3 per share. Proceeds
—For cost of plant and inventory and for general cor¬
mon

Nov. 30, 1957.

Price—At par ($10 per share). Proceeds
working capital. Office—497 Union Trust Build¬

Nassau

Harland W.

Motel Co. of Roanoke, Inc., Roanoke, Va.
Nov. 18 (letter of notification) 60,000 shares of common
stock (par 40 cents).
Price—$5 per share. Proceeds—

common

Un¬

derwriter—Stone, Moore & Co., Inc., Denver, Cclo.

ment work

St., Lorain, Ohio. Underwriter—None.

stock

Horace Mann Fund, Inc., Springfield, III.
27 filed 100,000 shares oi capital stock (par

Price—At

Dec. 20

June

utor and Investment

stockholders

Price

Home Owners Life Insurance Co.

Nov. 1 filed 50,000 shares of class A common stock to be
offered to the public at $5 per share and 116,366 shares
of class B

Dec. 16 filed 75,000

Mascot

Dec.

motels

Underwriter—None.

Langendorf United Bakeries, Inc.
Dec. 16 (letter* of notification) 2,200 shares of common
stock (par $1). Price—$22 per share. Proceeds—To go
to Stanley S. Langendorf, the selling stockholder.
Of¬
fice—1160 McAllister St., San Francisco, Calif. Under¬
writer—Walston & Co., Inc., San Francisco, Calif.

60.4364

Proceeds—To

unit.

per

through Italian corporations, a
Italy.
Office—Silver Spring, Md.

operate,

9,000 shares of 4% non-cumulative preferred stock (par
$100) and 15,000 shares of common stock (par $10) to be
offered in units of $9,000 of bonds, 90 shares of preferred

incorporators, management, and/or direc¬
tors. Price—$10 per share. Proceeds—For working cap¬
ital and general corporate purposes. Underwriter—None.

expires

Price—S101

stock.
and

—For

to organizers,

exchange offer

Inc.
Nov. 25 (letter of notification) 150,000 shares of common
stock (par five cents). Price—$2 per share. Proceeds—
For
capital expenditures, equipment,' repayment
of
loans and working capital. Business—Welding and cut¬
ting equipment.
Office — 253 Boulevard, Hasbrouck
Heights, N. J. Underwriter—Pierre ^Rossini Co., Westwood, N. J.

Lorain, Ohio
Dec. 13 (letter of notification) 1,785 shares of common
stock (no par) to be offered for subscription by common

The

be offered

chain

Proceeds—For

Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise
of warrants which are to be sold at 25 cents per warrant

Hartford

1983,

and

income debenture bonds due July 2,
in units of one $100 bond and two

$1,000,000 of 8%

constxmct

Light Co. (122)
Dec. 23 filed $10,030,000 of first, mortgage bonds, due
1983. Proceeds—To repay bank loans and for construc¬
Iowa

Motel Corp. of Italy
11 filed 20,000 shares of class A common stock

Dec.

Barney & Co., New York.

V'; '

•

(32)

gage

determined

competitive

Under¬

bidding.
Probable bidders: The Fir?t Boston Corp. and Halsey,

Volume

187

Number

Stuart & Co.
be received

Pacific

57Q4

The Commercial and Financial Chronicle

Co/'Inc.

Inc. .(jointly);-Blyth &

juj>,to ,8i3U a-m^/PST)

Bids—To

Professional Life &

bfifpan. 21.

Dec.

Oct. 11 filed 1,603,998 shares of common stock (par $1),
of which 1,588,998 shares are to be offered in exchange
for outstanding Merrill Petroleums, Ltd. common stock
at

the

rate (of none; Pacific

share for

each

effective

Pacific

Power &

Now

»'

13.

Light Co.

•

(1/15)

.' ,:.
Dec. 13 filed $15,000,000 first mortgage bonds due 1983.
Proceeds—To repay bank loans and for construction pro¬

Co. and Salomon Bros.

Hutzler

(jointly);

Blyth & Co.. Inc. and White, Weld & Co. (jointly). Bids
—Expected to be received up to 8 a.m. (PST) on Jan. 15.

Light Co. (1/15)
100,000 shares of cumulative preferred
(par $100). Proceeds—For construction program.

stock

Oct.

filed

bedetermined

Underwriter—To

ding.v Probable /bidders;,' Halsey,
Kidder;

Co.,

competitive

Stuart

Eastman

ancl

filed

,1 Price—To

(par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining expenses. • Office—c/o Bruce Kistler,

Shop Rite Foods, Inc.
Dec. 2 (letter of notification) 9,400 shares.of common
stock (par $5). Price—$13.50,per share, Proceeds—For
general corporate purposes. Office—617 Truman, N. K^
Albuquerque, N. M. Underwriters—The First Southwest
Co., Dallas, Tex., and Minor, Mee & Co., Albuquerque,

Chemicals, Inc.
200,000 shares of common stock (par $1).
supplied by amendment. Proceeds—For

N. M.

;
Research Instrument Corp.
{Oct. 7 (letter of notification) $125,000 of 10-year 10%
Bids—
■j convertible debentures and 12,500 shares of common
Tentalivefed^peCtbcl to be received up to 8 a.m. (PST)' q stock (no par) to be offered in units of one $100 debenture
on Janyv15.-1
'./i ■.; %;.
Y"
'r
and ten shares of common stock. Price—$200

Smith,

Pan Afhericaii Tool Co.,

per unit.
equipment, working capital and invenOffice—7962 S. E. Powell Blvd., Portland, Ore.

to be

—To be

;

■.

'•

■'

'■

Resolute Bay Trading Co., Ltd.

Oct. 29 (letter of notification) 30,000 shares of common

fot:\yotkirig capital. Underwriter—None.

•; ."-J-..iC ' z '.§).*

stock.

Peninsular,Metal Products Corp. (1/8)
Dec. 16. filed 65,(300 shares of 6% cumulative convertible
preferred stock. Price—To be supplied by amendment.
Proceeds—Together with funds from sale of $318,000 5%

per share). Proceeds—For work¬
Business—Purchase and sale of commo¬

Office—St. John, N. B.,

•

Canada.

Underwriter—

Irving Weis & Co., New York.
Resolite Corp.,

standing

for subscription by stockholders of record Dec.

1, 1957
in the ratio of SVz new shares for each 10 shares held;
unsubscribed shares to be offered to public. Price—$10
per share. Proceeds—To pay $100,000 outstanding obli¬
gations and for improvement and rehabilitation of plant
and facilities. Business—Fiberglass panels. Underwriter

Nankervis Co., Detroit, Mich., for $15.75 per share, or a
total of $1,645,875.

Peoples
Oct.

Security

filed

Office—Ferndale, Mich.

Underwriter

& Co., Detroit, Mich.

1,000,000

Investment Co.

preorganization subscriptions to

—None.

class A voting common stock and 250,000 preorganization

subscriptions to class B non-voting
offered in units

share,

common

of four class A shares

and

•

stock to be
one

Education, to be incorporated

as a non-profit corpora¬
tion. Price—$2 per share. Proceeds — For capital and
surplus to finance a proposed insurance company to be
named Peoples Security & Endowment Co. of America.
Office
Montgomery, Ala. Underwriter — None. T. J.

•

effective

$50 of debentures,

share,
purchase four common shares plus $1 in
cash. These units are to be issued in exchange for each
outstanding - share of preferred stock (par $25) plus
accrued dividends.
The offer will expire on Jan. 31,
one common

Purpose—To eliminate

reduce

preferred

divi¬

Nov.

14.

Registration

Racing Association
300,000 shares of common
share). Proceeds—To re¬
Office — Littleton, Colo.

Oct. 31

Brewing Co., Pittsburgh, Pa.
Nov. 15 filed $5,646,750 of 5% sinking fund income sub¬
ordinated debentures due Oct. 31, 1992; 112,935 shares of
common stock
(par $1); and 451,740 warrants to pur¬
chase 451,740 additional shares of common stock being

1958.

Statement

withdrawn.

Underwriter—R. B. Ford

Co., Windover Road, Memphis,
\

Y-.

„

...

y
i

Rose

Records, Inc.

Office—705 South Husband St., Stillwater,
Okla. Underwriter—Richard B. Burns Securities Agency,
Stillwater, Okla.
ing capital.

selling stockholder, and 3,830 shares for

company. Price—$52 per share. Proceeds—To purchase
steel inventory items./Office—Neville Island, Pittsburgh

exploration expenditure programs. Underwriter—Mor¬
gan Stanley & Co., New York, heads list of American

25, Pa.

underwriters.

arrearages;

tive Dec. 13.

Underwriter—None.
,

Statement effec¬

V Y ;

Pittsburgh-Des Moines Steel Co.
Nov. 29 (letter of notification) 5,750 shares of common
stock (no par), of. which 1,920 shares are to be offered
for account

Underwriter—None.

—

Underwriter—Steven Randall & Co., Inc.,

Kew

York.

Polytronic Research, Inc.
^
Nov. 4. (letter of notification) 80,000 shares of common
stock (par 10 cents). Price—$2.50 per share. Proceeds—
For equipment and research, development program and
working capital. Office—4130 Howard Ave., Kensing¬
ton, Md. Underwriters—First Washington Corp. and The
,

Stanford

Corp., both of Washington, D. C.l Change of
Name—Formerly Acme Tool & Engineering Corp.
Ponce Hotel
12

filed

Dec. 20

cumulative

Rule

(C. F.)

preferred

stock, series A (par $100), 12,410 shares of 6% cumula¬
tive preferred stock, series AA (par $100) and 364,000
shares of common stock (par SI) to be offered in units
of one preferred share and 26 common shares. Price —
unit. Proceeds — Together with Vroceeds of
financing, will be used to purchase hotel site, con¬
struction, furnishing Sridvequipment of the hotel. Un¬
derwriter
Compania Financiera de Inversiones, Inc.,
San Juan, P. R.
$126 per

debt

—

Construction Co.

Septv 13 filed 127,289 shares of common stock (par $10).
Price—$13 per share. Proceeds—To retire outstanding
loans

for working capital and investment in addi¬
equipment. Office—Nashville, Tenn. Underwriter

and

tional

Statement effective

—None.

Nov. 20.

postponed.

each).

Proceeds—For

Inc.
(letter of notification) 1,500 shares of 7% cumu¬
lative preferred stock. Price—At par ($100 per share).
Proceeds—For construction, payment of promissory note
and-working capital. Office—3309 Winthrop St., Fort
Worth, Tex. Underwriter—Reilly, Hoffman & Sweeney,
Inc., New York, N. Y. Offering—Expected this week.
Stuart-Hall Co.,
Nov.

due

inations of
and

Inc., Kansas City, Mo.
of 20-year 6% convertible de¬
15, 1977. Price—At par (in denom¬
$1,000 each). Proceeds—For working capital

filed

bentures

St.

reduce

$1).

Price—At

vestment.

$650,000

Dec.

bank

Underwriter—White &

loans.

Co.,

Louis, Mo.

Oct.

filed

Houston, Tex.
shares of

10,000,000

Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter
Yates, Heitner & Woods, St. Louis, Mo.
Offering—Indefinitely postponed.

common

stock

(par

cent). Price—$1 per share. Proceeds—For explora¬
tion and exploitation of oil, gas and sulphur properties.
Underwriter—T. J. Campbell Investment Co., Inc., Hous¬
one

ton, Tex.

■

Syntex Corp. (Republic of Panama)
July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholder*
of Ogden Corp. on the basis of one new share for each
four shares held and to holders of options on the basia
of one share for each option to purchase four shares of
Ogden common stock; unsubscribed,shares to be offered
to certain employees and officers.
Price—$2 per share.
Proceeds—To pay outstanding obligations to Ogden Corp.
1

;

Tax

Exempt Bond Fund, Inc., Washington, D. CJune 20 filed 40,000 shares of common stock. Price—$25
per share.
Proceeds — For investment. Underwriter—
Equitable Securities Corp., Nashville, Tenn. Offering—
Held up pending passing of necessary legislation by
Congress.
'
/
.

Taylor Instrument Companies
Oct. 1 filed 99,195 shares of common stock (par $10) to
be offered for subscription by common stockholders on
the

basis

one

new

for each four

shares held.

—

Schering Corp., Bloomfield, N. J.
filed 278,983 shares of 5% cumulative con¬
vertible preferred stock (par $30) and 418,475 shares o
Sept. €9

stock

(par

$1)

issued

I exchange for

stock of White

with

Laboratories, Inc. (which is to be merged
Schering Corp. effective Sept. 19, 1957) on the

basis of

one

common
mon

share of preferred

stock for

held.

each

White

stock and IV2 shares of
class A

class

com¬

Underwriter—None.

supplied by amendment. Proceeds — To
retire short term bank loans and for working capital and

Price—To

general corporate purposes.

Office—Salt Lake City, Utah.

working capital.

Under¬

writer—None.

common

vestment.

Price—At

stock.
..

market.
,

Proceeds—For

in¬

—

Rochester, N. Y.
Offer-

Indefinitely postponed.

Tekoil

Corn., Dallas, Texas
Dec. 9 filed 6<i,403 shares^of common

stock, of whicb

377,408 shares are to be issued for the account of selling
and the remaining 300,000 shares issued
from time to time in exchange for oil and gas properties.

stockholders

377,408 shares, 132,558 shares, 61,392 shares and

47,606 shares, respectively, are to be issued as dividends
to stockholders of Texolina Oil Co., Mountain Valley Oil
Corp. and Trigg Drilling Co.; while 57,239 are to be
fered immediately to the public, while the balance

78,613

(by amendment) 20,000 additional shares of

Office

Underwriter—The First Boston Corp., New York.

Of the

Sentinel Security Life Insurance Co.
27 filed 5,000 shares of common stock (par $10).
Price—To be supplied by amendment.
Proceeds—For

Nov.

of¬
of

shares are to be similarly offered in the near
Price—To be supplied by amendment. Proceeds

future.

(par

of demand notes pay¬
Office—2301 Huntsville Road,
Underwriter—None.
payment

Sovereign Resources,

—To selling

stock

Nov. 19

ic Service & Nuclear Fund, Inc., Philadelphia, Pa.

20,000 shares of capital
market.
Proceeds—For in¬

able and working capital.

Dec. 30 filed

(by amendment)

(par $1).

23 (letter of notification) $300,000 of 6% second
mortgage serial bonds (with common stock purchase
warrants).
Price—At par (in denominations of $1,000

Dec.

filed

stock

Dec.

if Preston Moss Fund Inc.
23

common

if Southern Electric Steel Co.

St. Louis Insurance

common

Corp., San Juan, P. R.

1,590 shares of 6%

155,000 shares of

Underwriter—None.

.Pleasant Valley Oil & Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds
For geological studies, reserve for contingent
liability, for machinery and equipment and other re¬
serves.
Office
616 Judge Bldg., Salt Lake City, Utah.

Dec.

10 filed

Price—To be supplied by amendment. Proceeds—To two

Surinam Corp.,

July 22 (letter of notification) 11,022 shares of common
stock. Price—At par ($1 per share)/Proceeds—For work¬

Royal Dutch Petroleum Co. (1/20)
filed 7,602,285 shares of capital stock to be of¬
fered for subscription by stockholders of record Jan. 17,
1953 on the basis of one new share for each eight shares
held; rights to expire on Feb. 10. Price—To be supplied
by amendment. Proceeds—To be made available to the
Royal-Shell Group of companies for their capital and

dend

Tenn.

■

Simplicity Pattern Co. Inc.
Oct.

Birmingham, Ala.

Productions

Rocky Mountain Quarter
(letter of notification)
stock. Price—At par ($1 per
pay outstnding indebtedness.

President.

offered i.n units of

York.

statement

Pittsburgh

warrants

(Hal)

/-'■

8 filed 375,000 shares of common

New

—

Patterson

* '• f* ,'

y '

stock (par $1).
Price—$3 per share. Proceeds—For expansion of pro¬
duction of filmed televisioh commercials and for working
capital. Business—Produces films for television. Office
—Culver City, Calif. Underwriter—S. D. Fuller & Co*.

the purchaser agreeing to donate each class B
to the Peoples Security Foundation for Christian

Roach

Aug.

class B

///:/•, / V

selling stockholders. Underwriter—Merrill Lynch, Pierce,
Fenner & Beane, New York. Offering — Indefinitely

Zelienople, Pa.

Dec. 6 filed 20,000 shares of common stock to be offered

debentures, to purchase all of the out¬
104,500 shares of capital stock of George L.

Shopping Centers Corp., Pittsburgh, Pa.
Dec. 17 filed 50,000 shares of common stock (par $2.50)
and $2,500,000 of debenture bonds to be offered in units
of one share of stock and one $50 borui.
Price—$52.65
per unit. Proceeds — For construction,:ownership and
management of shopping centers, luxury hotels and other
commercial property./ Underwriter — None. Offering
to be made through Akiba Zilberberg, 5857 Phillips Ave.,
Pittsburgh 19, Pa., the company's President.

Prijce—At par ($5

ing capital, etc.
dities.

subordinated

—Wm. C. Roney

itory.
:
Underwriter—Campbell & Robbins, Inc., Portland, Ore.

Oct. 28

ment and

Proceeds—For

Houston, Texas

fifejd -1^5)000 shares of 'common stock (par $1),
offered in'bloeks of not less than 3,000 shares. Price
supplied^'by amendment. Proceeds — To dis¬
charge trade.'accounts payable, to buy tools and equip¬

Mining Co.
notification) 2,000,000 shares of common

stock

expansion program and working capital. Underwriter—
'Blyth & Co., Inc., New York. Offering — Temporarily
postponed.

bid-,

& Co. Inc.;
Dillon, Union

Securities >8c'~CoJ• (jointly)';* 'Blyth, '& Co., Inc.;
BarneyOb..,,arid White, Weld & Co. (jointly).

Dec. 9 (letter of

...

Reichhold

Pacific Power &

Dec.

Shaleen Oil &
»

filed

Underwriter—To be determined by competitive
bidding. Probable bidders: Ilalsey, Stuart & Co. Inc.;
Eastman Dillon, Union Securities & Co., and Kidder,
Peabody
&
Co.
(jointly); Lehman Brothers; Bear
gram.

Stearns

Price—

stock.

-Counsel, 450 Denver Club Bldg., Denver, Colo. Under¬
Savings Life Insurance Co.
writer—None.
;
■
113,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds■'Shell" Transport & Trading Co., Ltd. (2/14)
„—To Publie Savings Insurance Co., the selling stock¬
Dec. 20 filed a maximum of $12,600,000 of New York
holder. Office—Charleston, S. C. Underwriter—None.
Shares (representing a like amount of ordinary shares)
-to be offered for subscription by holders
of ordinary
Pyramid Mining & Metal Corp.
shares,, including stock represented by New York shares
'Oct. 24 (letter of notification) 236,000 shares of common
of record Jan. 17, 1958. This represents 10% of the total
.stock (par $1). Price—$1.25 per share. Proceeds—For
offering by the company, which 10% is to be offered for
mining expenses. Office — 508 Great Plains Life Bldg.,
subscription by American residents. Price—To be sup¬
Lubbock, Tex. Underwriter—Sterling Securities Co., Inc.,
plied by amendment. Proceeds — For exploration pro¬
Odessa, Tex. •
• •
•
grams. Underwriter—None in the United States.
Ramapo Uranium Corp. (New York)
-Ar Sheraton Properties, Inc., Boston, Mass.
Aug. 13 filed 125,000 shares of common stock (par one
Dee. 30 filed $990,000 of first mortgage sinking fund
cent). Price—$5 per share. Proceeds—For exploration
bonds due Dec. 1, 1973.
Price—At par. Proceeds—To
: and
development of properties and completion of a ura¬
repay indebtedness. • Underwriter — Sheraton Securities
nium concentrating pilor mill. Office—295 Madison Ave.,
Corp., a subsidiary.
y .' ,v.
New York 17, N. Y. Underwriter—None.

shares; the remaining 15,000 shares are to be issuable
upon exercise of,presently outstanding options granted
by Merrill, which options will be assumed by Pacific.
Office—Calgary, Alberta, Canada. Underwriter—None.
Statement

common

Public

Nov.

Merrill

two

Casualty Co., Champaign, III.

120,000 shares of

$15 per share. Proceeds—To increase capital and surplus.
Underwriter—None.

;'<X.

Petroleums, Ltd.

filed

(33)

stockholders.

Underwriter—None.
Continued,

page

The Commercial and Financial Chronicle

Thursday, January 2,

(34)

Continued

jrom page 33
Corpi, San Antonio, Texas

Texam Oil

May 29 filed 300,000 shares
a

of common stock (par $1),

bonds due
$10,000,000 of sinking fund deoentures due
Proceeds—
To retire a like amount of short-term notes.
Under¬
writers — Kidder, Peabody & Co., Blyth & Co., Inc.,
White, Weld & Co. and Laurence M. Marks & Co., all oi

offered for

sharb. Proceeds

Office—442 W. California
derwriter—None.

—

Road, Fort Wayne, Ind.

stock (par $25). Price—To be
supplied by amendment. Proceeds.— To repay bank
loans and for construction program.
Office — Everett,
Wash.
Underwriter—Blyth & Co., Inc., San Francisco

Un¬

6 filed 3,000,000

shares of common stock (par 9ne

other corporate purposes.
E. Owens

fred

Trask

West Texas Utilities Co.

Al¬

Manufacturing Co.

Pulp & Paper Co. (1/15)
$40,000,000 of 20-year debentures due Jan.

Dee. 23 filed

1, 1978. Price—To be supplied by amendment. Proceeds
—For expansion program. Underwriter—Harriman Rip¬

ley & Co. Inc., New York.

Copperada Mining Corp.

Western

(par $1)
Proceeds—For expansion program
and other corporate purposes. Office—Washington, D. C
Underwriter
Southeastern Securities Corp., New York
Sept. 30 filed 735,000 shares of common stock

Price—$4 per share.

Madison, Wis.

—

drilling barge; and foi
working capital and other corporate purposes.
Under¬
writer—Kohlmeyer & Co., New Orleans, La.

■

stock
For

Price—$2

(par 10 cents).

share.

per

Proceeds—

working capital and general corporate purposes.
Under¬

Office—207 East 43rd Street, New York, N. Y.
writer—J. A. Winston & Co., Inc., New York.

Young (Donald W.) & Son, Inc.
Nov. 14 (letter of notification) $75,000 of 10-year 6%
debentures due Oct. 1, 1967, with common stock war¬
rants to purchase 7,500 shares of 10-cent par common
stock at $1 per share. Price—$100 per unit of a $100
debenture and

one

short
Office—Stockholm

debt and for working

term

capital.
Underwriter—Sherry Co., New York.

N. Y.

to be $1 per

share). Proceeds—For exploration purposes
Underwriter—To be named by amendment. Graham Al¬
Vulcan

Materials

Co., Birmingham, Ala.
114,396 shares of GV^% cumulative pre¬
ferred stock (par $100), 54,631 shares of 5%% cumula¬
tive preferred stock
(par $100), 87,000 shares of 5%
cumulative convertible preferred stock (par $16)
and
12

filed

2,390,230 shares of common stock (par $1) to be issued
in exchange for stock of Union Chemical & Materials
Corp. and Lambert Bros., Inc. under an agreement of
merger to become effective Dec. 31, 1957, viz: Each of
the
are

1,143,968 shares of Union common stock outstanding
to be converted into 1% shares of Vulcan common

(1,429,960 shares) and 1.1 shares of Vulcan 674% pre¬
ferred (114,396.8 shares) ; each of the 1,092,639 shares, of
Union 5% preferred stock outstanding will be converted
into
l/20th share of Vulcan 5%% preferred
(54,632

Appalachian Electric Power Co; (6/3)
Dec. 2, it was reported that this company, a subsidiary
of American Gas

& Electric Co.,

plans to issue and sell

$25,000,000 of first mortgage bonds.
for construction

Proceeds—To repay

Underwriter
competitive bidding. Probable
Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Kuhn, Loeb & Co. and Eastman Dillon, Union
Securities & Co. (jointly); Harriman Ripley & Co. Inc.
Bids—Tentatively expected to be received on June 3.
bank

loans

—To

and

determined

program.

bidders:

Baltimore & Ohio RR.
Bids

will

New

received

(1/23)

by the

company

St.,

5, N. Y., on January 23 for the purchase
$3,435,000 equipment trust certificates. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &

Hutzler.

and

shares of its

struction program.

Wesco

competitive

Rockwood

Products, Inc. Prior to the
above merger, Lamberj^owned, and as a result of the
merger Vulcan will own, the remaining 50% stock in¬
terest in Chattanooga Rock and the remaining 33%%
Slag

stock interest in Rockwood Slag.

Underwriter—None.

Warwick Valley Telephone Co.
24 (letter of notification) 4,708 shares of common
stock (no par) to be offered for subscription by common
stockholders on the basis of one new share for each two
Oct.

shares held.
struction of

Pfice—$20 per share. Proceeds—For con¬
telephone plant. Office — 47-49 Main

new

St., Warwick, N. Y.

Underwriter—None.

Washington National Development Corp.
2 (letter of notification) 50,000 shares of common
stock (par $1) of which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to be
offered to certain individuals under options. Proceeds—
Oct.

For general corporate purposes.

Office

—

3612 Quesada

Dec/ 9. it

(2/4)

reported company plans to issue and sell

was

$12,000,000 of first mortgage bonds. Proceeds—To repay
bank loans arid for construction program. Underwriter—
To be determined by competitive bidding.
Probable

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Kidder, Peabody & Co.; Lehman Bro¬
thers and Glore, Forgan & Co. (jointly); Blyth & Co.

bidders:

Securities & Co.;

Inc.; The First Boston Corp.;

Kuhn, Loeb & Co.; Merrill

Lynch, Pierce, Fenner * & Beane and Salomon Bros. ; &
Hutzler (jointly^.'1' Bids—Tentativery-e^ected to'/be received on Feb.:4:rr, •
"
•
7 • - - V " 7,
Chicago* Burtington& Quincy RR.-U1/B) 77 / 7
are expected io be.received by the company up to

was

sell $22,000,000

of first mortgage bonds next April
Proceeds—To repay bank loans and for con¬

May.

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart

Co.

Inc.; Lehman Brothers; Blyth & Co., Inc., and
Moseley & Co. (jointly); Merrill Lynch, Pierce,
Fenner & Beane; Harriman Ripley & Co. Inc. and The
First Boston Corp. (jointly); White, Weld & Co.
Buffalo Industrial
Dec.

was

18,750 additional shares of common
one-for-five basis. Price—$25 per
Proceeds—To increase capital and surplus. (par $10)

on a

California

20,

after

its
stock
share.

Electric

Power

Halsey, Stuart* & /Co. trie/;/ Morgan Stanley *8? Co.; Leh¬
Brothers, E^stmrin Dillon Union Securities & Co.

Chicago/ Burlington & .Quincy RR. (1/21)
are exppcted to be received by the company on
Jan. 21 for the ^purchase, from it of $4,500,000 .equipment

Bids

certificates.'

trust

the first

bidders:

Probable

Stuart

Halsey,

Bros. & Hutzler.

Inc.; Salomon

12 it was ^announced

Nov.

of the

of bank loans and for

year."
new

plans to sell about

company

after, the

$5,000,000- of /first -mortgage bonds, sometime

Proceeds—To repay advances anade-by
Peoples Gas Light. & Coke Co.,, the parent. Underwriters
—Probably Dillon, Read & Co., Inc. and Halsey, Stuart

turn of the year..

:" *»

Co..;; Inc.

" -*,

•

'1 •

Chicago, Rock Island & Pacific RR. (1/9)
Bids are. expected "to be received by the company up to
noon
(CST) oner Jan. '9 / for the purchase from
$4,620,000 equiprnent trust certificates. Probable bickers:

Halsey, Stuart; &' Co, Inc.; Salomon Bros. & Hutzler.

Electric

Cincinnati Ga£ &

Co.

plans in 1958 to sell
$15,000,000 of first mortgage bonds. Proceeds:—
To repay barik loans /and for construction program.
Underwriter—/To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan
Nov.

was reported

company

Stanley & Co.*.and W. E. Hutton & Co.
& Co. Inc. and The First Boston Corp.

(jointly); Blyth
(jointly); Mer¬

& Beane and Lehman Bros,
(jointly); Eastman Dillon, Union Securities & Co. and
White, Weld &' Co.' (jointly).v.
y ' -

rill Lynch, Pietfce, Fenner

Cincinnati/Qas> & Electric Co.
8 it was,also announced that company plans in
offer to its common stockholders
about 450,00Q/ additional shares of common stock oil
about a l-for-16 basis.
Underwriter—None.
.

Nov.

the summer.pf; 19,58 to

Cleveland ^Electric Illuminating Co.
17 it iwas.:announeed company

(2/25)

plans to issue and sell

$30,000,000 of first mortgage bonds due 1993. Proceeds—
To repay bank loans and for new construction.
Under¬
competitive bidding. Prob¬

writer—To be determined by

Stuart & Co. Inc.; Blair & Co., Inc.

able bidders: Halsey,

(jointly); Glore,: Forgan &

& Co.

Blyth & Co., Inc.; The First Boston Corp.; White,
Weld & Co.; Dillon Read & Co. Inc. Bids—Expected to

Proceeds—For repayment

construction.

be received up to noon

Dec.

Underwriter—

To be determined by competitive bidding. Probable
ders:
(1) For any bonds—Halsey, Stuart & Co.

bid¬
Inc.;
Kidder, Peabody & Co.; White, Weld & Co. (2) For
common stock-r-Merrill
Lynch, Pierce, Fenner & Beane;
Carl M. Loeb, Rhoades & Co.; White, Weld & Co.; Kid¬
der, Peabody & Co.
Any preferred stock may be sold
on a negotiated basis, and underwriters may be Merrill

(EST) on Feb. 25.

& Southern Ohio Electric Co.

Columbus
was

reported company plans to issue and sell

shares of common stock. Under¬
Dillon,/Read & Co, Inc. and The Ohio Co.

1958 about 250,000

writers

—

(jointly).

7/''.//"7/'7'."/ /./• /,v

7.•;/, ^

Consolidated Edison Co. of New York, inc.

that about $60,000,000 of new bonds

be sold "next year to repay bank loans incurred
through August, 1958;." Underw*riter—To be determined
through competitive bidding. Probable bidders: Halsey,
Stuart & Co., Inc.; .Morgan Stanley & Co.; The First
may

Boston Corp..

Co.

C. Ernst, President, said that "it now
will be back to market more securities soon

Carl

appears we

it of $24,-

man

Dec. 3. it Was stated

Bank, Buffalo, N. Y.

reported the bank plans to offer to

stockholders

Nov.

noon-(EST) :on Jan. 8 for the purchase from

Co.;

announced that company expects to issue

Nov. 25 it

(583,600 shares) and 72% shares of Vulcan 5% pre¬
ferred (87,00C shares).
Vulcan will also issue 376,670

stock

Bids—Expected Feb. 25.

(jointly).

Central Power & Light Co.

and Baxter, Williams

Brooklyn Union Gas Co.

bert will be converted into 486% shares of Vulcan com¬

common stock in exchange for the stocks of
Materials, Inc.; Wesco Contracting Co., Asphalt
Paving Materials Co.; Brooks Sand & Gravel Co.; and
Tennessee Equipment Co.; 50% of the outstanding stock
of Chattanooga Rock Products Co. and 66%% of the

Fenner & Beane

Dec.

Wall

York

from it of

shares); and each of the 1,200 common shares of Lam¬
mon

Blair & Co., Inc.; Blyth & Co.,

Peabody & Co. and Merrill Lynch, Pierce,,

Inc., Kidder,

about

April 30 filed 1,250,000 shares of common stock (par 1C
Price—To be supplied by amendment (expected

Dec.

Securities ft Co/arid Equitable

Proceeds—To repay

warrant.

cents).

President.

Halsey, Stuart & Co, Inc.; Eastman Dillon, Uniori
Securities Corp. (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co. Jnc. (jointly);

ders:

Chicago District Pipeline Co.

Inc. (1/7)
I
Dec. 20 (letter of notification) 150,000 shares of common

of America, Portland, Ore.

bert Griswold of Portland, Ore., is

sell

$15,000,000 of first mortgage bonds. Proceeds—To repay
bank loans arid for construction program. Underwriter—
To be determined -by competitive bidding. Probable bid¬

Worldmark Press,

United States Sulphur Corp.
Oct. 8 filed 1,500,000 shares of common

(par $1). Price—$5.50 per share. Proceeds—To pay ob¬
ligations incurred and to be incurred in connection with

Co. (2/25)

500,000 of new first and refunding mortgage bonds due
Feb. 1, 1978.
Proceeds — To retire $24,500,000 general
mortgage bonds-due March 1, 1958. Underwriter—To be
determined by xpmpeti'tiyet bidding./Probable bidders:

and for working capital. Office — 1205 Phillip*
Underwriter—Jean R. Vedit2
Co., Inc., New York. Offering—Expected at any time.
Wisconsin Southern Gas Co-* Inc. (1/3)
Dec. 12 filed 19,327 shares of common stock (par $10) to
be offered for subscription by common stockholders of
record Dec. 26, 1957 at the rate of one new share for
each six shares held; rights to expire on Jan. 17, 1958.
Price—$16 per sraare. Proceeds—To repay bank loans.
Underwriters—The Milwaukee Co., Milwaukee, Wis.; arid
Harley, Hayden
Co. and Bell & Farrell, Inc., both of

United States Coconut Fiber Corp.

construction and equipping of a

PUblic^Servlce

reported company plans to issue and

was

Bids

vey,

Universal Drilling Co.* Inc., .New OrJeans, La. .*
31 filed 400,000 shares of class A common stock

Dec/ 9, it

(Canada)

Square, Montreal, Canada

10-year external loan bondi
due Oct. 1, 1967. Price—To be supplied by amendment.
Proceeds—For transportation development program. Un¬
derwriter—Dillon, Read & Co. Inc., New York. Offerinf
—Postponed temporarily.

Oct.

velopment and exploratory work, drilling costs and sur¬

12 filed $15,000,000

& Co.

Stuart

Aug. 30 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For de¬

Union of South Africa

stock (par one
cent). Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; foi
working capital; and for other exploration and develop¬
ment work. Off ice — Houston, Texas.
Underwriter—

cornpetitive bidding. Probable bidders: Halsey,
Inc.; The First Boston Corp.; and Coffin
Burr, Inc. and F. S. Moseley & Co. (jointly). Bids—
Tentatively expected to be) received, in January.
mined by

Salomon Bros. & Hutzler:

(1/20)

West Virginia

Co.

all or part of an out¬
standing 5% term loan and/or provide additional work¬
ing capital. Office—Roanoke, 111. Underwriter—White
& Co., St. Louis, Mo., on a best-efforts basis.

Uranium Corp.

Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Beane. Bids—Expected to' be received
up to 11:30 a.m. (EST) on Jan. 20..

bank loans, to1 repay

None.

...

rities

Sept. 24 filed $600,000 of 6% sinking fund debenturei
and 30,000 shares of class A common stock (par $1) to
be offered in units of $500 pf debentures and 25 shares of
stock. Price—To be supplied by amendment. Proceeds—

Sept.

■

and Salomon Bros. & Hutzler

working capital and payment of current liabilities. Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,
N. C. Underwriter— Selected Investments, Wilmington,
n. c.
:

reduce

Corp.; Blyth & Co,, Inc., Harriman Ripley & Co. Inc.
(jointly); Equitable Secu¬

stock (par $5).

.7/;.7

$8,500,000 of first mortgage bonds due 1988.
Proeeeds-~To repay loans add for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Lehman Brothers (jointly); The First Boston

of Waterloo, la.,

Ulrich Manufacturing

7,,^;, '

Dec. 23 filed

(letter of notification) 15,000 shares of common
Price — $4.50 per share. Proceeds — For

Dec.

Underwriter—None.
is President.

preferred

New York.

and

mill). Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserves,
and

160,000 shares of $1.44 junior cumulative

filed

convertible

Trans-America Uranium Mining Corp.
Nov.

Dec.

Cambridge Electric Light Co.
Oct. 22 it was reported company may issue $4,500,000
of first mortgage bonds,
underwriter—-To be deter¬

Central Illinois

(1/15)

if West Coast Telephone Co.

par).
For working capital.

Kidder, Peabody

(jointly).

York.

New

Securities Corp.
filed 250,000 shares of common stock (no

Price—$4 per

Price—To be supplied by amendment.

1983.

Town & Country

Dec.

and

1988

basis of two new

Lynch, Pierce,-.Fenner & Beane and
& Co.

Washington Water Power Co. (1/9)
Dec. 11 filed $20,000,000 of first mortgage

subscription by common stockholderi
shares for each share held. Pric«
—To be supplied by amendment.
Proceeds—To repaj
indebtedness, for acquisition and exploration of oil ano
gas leases, for drilling and completion of wells, and foi
other corporate purposes. Underwriter—None.
to

Underwriter—Wagner &

St., N. W., Washington, D. C.
Co., New York City.

1958

Duquesne Light Co
Dec.

12 it was

77
•

7".'. .'''•/'v.-

reported company plans to issue and sell

of first mortgage bonds due 1988.
bank loans and for construction
program/ Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston-Corp.; White, Weld & Co.; Glore,
Forgan & Co.; Kuhn, Loeb & Co.; Eastman Dillon, Union
Securities & Co., and A. C. Allyn & Go. Inc. (jointly);
Drexel & Co. and Equitable Securities Corp. (jointly).
Offering1—Planned in first half of 1958.
around

$15,000,000

Proceeds

—

repay

Volume

187

Number 5704

The Commercial and Financial Chronicle

(35)

& Co.

>r-1-

• ■

Dec. 6 it

was announced company plans to issue and sell >
$21^500,00(1 of first mortgage bonds due 1988; ^Proceeds—
To finance, construction program. Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Leh¬
man Brothers; The First Boston
Corp.; Blyth & Co., Inc.,
Kidder, Peabody
Co.:and Shields & Co.. (jointly);
Equitable Securities Corp. and* Eastman Dillon, Union
Securities & Co. (jointly).
Bids—Scheduled to be re¬
ceived up to 11 a.m. (EST) .on Feb. 20. Registration—

Planned for Feb. 21;
Great Northern

•

Ry.

Halsey, Stuart

Co.

Inc.; Salomon Bros. & Hutzler.

Gulf, Mobile & Ohio RR.
3 compdny applied to the ICC for permission to
issue $28,343,800 of 5%
income debentures to mature
Dec. 1; 2056 in exchange for the 283,438 shares of out¬
standing $5. preferred stock (no par) on tlie basis, of
$100 of debentures for each preferred share.

Nov.

Dec. 6 it

was announced company plans to' issue and sell
$8,000,000 of first mortgage bonds due 19881 "roceeds—
To finance construction program.
Unde^yfiijr—-To be
determined by competitive bidding; Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; Blyth &
Co., Inc.; Lehman Brothers; Eastman Dillon, Union Se¬
curities & Co. and Equitable Securities Corp. (jointly);
Merrill Lynch, Pierce, Fenner & Beane and Salomon
Bros.* & Hutzler (jointly).
Bids—Scheduled to be re¬
ceived up to 11 a.m. (EST) on Feb.* 20NKejgistration—

Planned for Jan. 24.

•

«-

it:

was

announced

for

class

common

shares, of which there

are

New Orleans

Fla.

Public Service

Inc.

Seaboard Air Line RR.

(jointly); White, Weld & Co.; Salomon Bros. & Hutzler.

ing

was reported company plans to issue and sell
$5,445,000 equipment trust certificates. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Southern

expected to be received .by..

are

early

equipment trust certificates to

new

issue of

amount sufficient

finance three-fourths of the cost of

equipment. Pro¬

new

ceeds—Together with other funds, to buy 70 new loco¬
motives, costing approximately $155,250,000, and $250,000
of spare parts. Underwriter—To be
^etertpined by com¬
petitive bidding. Probable bidders: Halsey,. Bt'uart & Co.
Inc.; Salomon Bros. &Hutzler^ YY'tYY-YvYY* ■'

if International

Bank for Reconstruction and
Development ("World Bank,r)-!;(1:6);

Dec.

17 it

market

the
planning to
21-yea:r,-'b6ilds''ln^this;. country.
First' Bosf 6ii:: Co^y^nd'/ Morgan

announced-that

was

$150/000,000 of

Underwriters

—

The

Stanley & Co., both of New York.

Iowa Illinois Gas & Electric Co.

mature

semi-annually from May 1, 1958 to and in¬
1, 1972. Probable bidders: Halsey, Stuart
Inc.; Salomon Bros. & Hutzler.

cluding Nov.
& Co.

Northern Illinois Gas Co.

this

$10,000^000

made

early

that

1958.

now

common

decision

has

been

stock.

Feb.

Natural

19.

Gas

to raise in mid$5,000,000 and $6,000,000 new capital, about
two-thirds of which will be through bond financing and
the balance through common stock financing.
Under¬
writer—For stock, may be Hornblower & Weeks, Wil¬
liam R. Staats & Co. and The First California Co. (joint¬

;

ly).

Nov.

25 the company announced the proposed issuance
of 456,813 additional shares of common stock (par $10),

to
on

offered- late

the

held.

basis

Proceeds
loans

bank

one

—

common

for

Approximately

and for

—None.

January to
new

construction

each

ding.

Registration—Planned for Fefb.' 5.

Iowa Public Service Co.

•

(3/3) -1 -.a

Dec. 18 it

was reported, company plans, .to issue and sell
$10,000,000 of first mortgage bonds due 1988. Proceeds—.

-To repay

bank loans and for construction-, program. Un¬
derwriters—To be determined by competitive bidding.

Probable bidders: Halsey,.Stuart & Co.; Eastman Dillon,
Union Securities & Co. and Salomon Bros. & Hutzler

(jointly): Blair & Co. Inc.; White, Weld & Co.; The First
Corp., Kuhn, Loeb & Co. and A. C. Allyn & Co.,
Inc. (jointly); Kidder, Peabody
&,Co. and Blyth & Co.
(jointly). Bids—Expected to be received-on March 3.
Boston

.V*Y-. -; V\

Litton-'Industries/ Inc.
Dec.

14 stockholders approved

the creation of

$20,000,000

program.

to repay
Underwriter

was

16,000 shares of $100 paj* preferred stock and an in¬
in the authorized common stock from 2,000,000 to
3.500,000 shares. Underwriters — Lehman Brothers and
Clark, Dodge & Co. handled last equity-financing which
was. done; privately.
.> .>">•:;
..

Louisiana Power & Light Co »'•

VJ,

Dec. 16, it was announced company may borrow
$11,500,000 from banks pending a final financing program relat¬

ing to the disposition of its gas properties to Louisiana
Gas Service

Co.,

a new company;

Minneapolis Gas Co.
Dec,

offer to its

was

reported

common

;

iv\a,A.T*

W../:

$30,000,000

company

debentures.

$35,000,000 first mortgage bonds du^ 1988.

Telephone &

Telegraph Co. and construction program. Underwriter—
To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); The First Boston Corp.; Merrill Lynch, Pierce,

reported company plans to offer $30,000,Pro¬

ceeds—To repay bank loans, etc. and for new construc¬
tion. Underwriter — To be determined by competitive

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan, Stanley & Co.; First Boston Corp.; Glore, For¬
gan1 ;& Co., ' White, Weld & Co. and Eastman Dillon,
Union Securities & Co. (jointly).
Bids — Expected on

Bids— Scheduled to be received on

& Beane.

Fenner

Registration—Planned for Feb. 4.

Feb. 26.

Tennessee Gas Transmission Co.

Oklahoma Gas & Electric. Co.
Nov-

be, planning to
stockholders, the jright to subscribe
may

Dec.

reported company plans to raise about
$20,000,000 next Spring, through sale of bonds and other
securities. Underwriter—To be determined by competi¬
tive

was

bidding.

directors

approved

proposal to issue and sell

construction

Proceeds—For

(1) For bonds—Halsey,
First
Corp.; Kuhn," Loeb & Co., Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co. (jointly); Har¬
riman Ripley & Co. Inc. and Eastman Dillon. Union
Securities & Co. (jointly).
(2) For preferred stock —
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly); The First Boston Corp.; Lehman Bros,
and Blyth & Co. Inc. (jointly); Smith, Barney & Co.;
Harriman Ripley & Co.' Inc.; Kuhn, Loeb & Co.
Any
offering of common stock may be made to common
stockholders/: with Merrill Lynch, Pierce, Fenner &
Beane underwriting.
Probable bidders:

Webster

Stone

Securities

Co., both of New York.
7

February, 1958.

Underwriters—
Corp. and White, Weld &
program.

■

Stuart & Co. Inc.; Equitable Securities Corp.; The

Texas Utilities Co.
Dec. 16 it

common

sell 340,000 addi¬

Proceeds—For construc¬

stock.

Underwriter—To be determined by com¬
bidding.
Probable bidders: Kidder, Peabody
Merrill Lynch, Pierce/ Fenner & Beane
(jointly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); The First Southwest Corp., Rauscher, Pierce
& Co. and Dallas Securities Co. (jointly); Lehman Bros*
and
Bear, Stearns & Co. (jointly); Hastman Dillon,
Union Securities & Co.
Bids—Expected to be received
tion program.

petitive

and

Co.

to 11 a.m. (EST) on Feb. 4.

Jan.

Registration—Planned for

10.

Pennsylvania Electric Co. (2/24)
it was reported company plans to issue and sell
$29,000,000 of first mortgage bonds due 1988. Proceeds—
To repay loans and for construction program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Equitable Securities Corp.; Kidder, Peabody &
Co., Merrill Lynch, Pierce, Fenner & Beane, Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly); Harriman Ripley & Co. Inc. Bids—Tentatively
scheduled to be received up to 11 a.m. (EST) on Feb. 24.
Pittsburgh & Lake Erie Ry. (1/8)
are expected to be received by the company up to
noon
(EST) on Jan. 8 for the purchase from it of

Bids

$3,975,000 equipment trust certificates maturing annually

olis, Minn.

Harry Oedekerk, Chairman of the Board, an¬
nounced corporation plans a public stock issue in the
near future.
Proceeds—For working capital and other

Nov.

Probable bidders: Halsey,

corporate purposes.
Union Electric Co.
Nov. 11

was

(IVIo.)

reported company plans to offer around

of common stock, first to
Underwriter—To be determined

additional Shares

1,000,000

stockholders.

common

competitive bidding.
Probable bidders; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.
by

Union Electric Co.

(Mo.)

plans to issue and
first mortgage bonds.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); White, Weld
& Co., Blyth & Co., Inc., Eastman Dillon, Union Securi¬
ties & Co. and Shields & Co. (jointly); The First Bos¬
Nov.
sell

Stuart & Co. Inc.: Salomon Bros. & Hutzler.

1, 1950 to 1973, inclusive.

Engineering, Inc., Arcadia, Calif.

Tuttle
1

Dec. 4

Feb.

(2/4)

announced company may

announced company

plans, following bond
sale about Jan. 21, to offer a small amount of common
stock to keep the capital structure in reasonable balance.
Underwriter—Blyth & Co., Inc., San Francisco and New
was

was

tional shares of

Pacific Gas & Electric Co.

Nov. 4 it

for about 166,070 additional shares of common stock on a
l-for-10 basis.
Underwriter—-Kaiman &

Co., Minneap¬

L600,000 shares of common stock early in

Boston

•

company

announced

was

ment of advances received from American

(3/4)

York.

crease

Co. (2/26)
plans to issue and
Proceedsr—For repay¬

New England Telephone

Southern
Dec.

Ohio Edison Co.

Stuart & Co. Inc.; Hornblower & Weeks and
(jointly).

William R. Staats & Co.

issue

„

For bonds, to be determined by Competitive bid¬
Only bidders in 1956 for $4,000,000 bonds were

Halsey,

stockholders
eight shares

sell

Dec. 12 it

announced company plans

was

1958 between

Co.

To be determined by

Southern Nevada Power Co.
Dec. 3 it

to be determined

—

Fenner & Beane.

Proceeds—

For construction program.

be received

reported company plans to issue and sell

$15,000,000 of first mortgage bonds. Un¬
competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc.; White, Weld & Co.; Merrill Lynch, Pierce,

to the form of the proposed financing, but no
is being given to sale of common stock

securities convertible into

Counties Gas Co. of California

was

derwriter

plans to

consideration
or

16 it

March 4.

(3/5)

was announced company plans to issue and sell
$9,000,000 of debentures (probably-convertible). Proceeds
—To repay bank loans-and for construction program.
Underwriter—To be determined by competitive bidding.4
Probable bidders: Halsey, Stuart & CoV Inc.; Kuhn, Loeb
& Co.; Glore, Forgan & Co.; The First Boston
Corp.;
Harriman, Ripley & Co. Inc., Eastman Dillon, Union Se¬
curities & Co. and White, Weld & Co. (jointly); Lehman
Brothers; Merrill Lynch, Pierce, Fenner" &'Beane; Equi¬
table Securities Corp.; Blyth & Co. Bids—Expected on

•

in March, 1958,

(2/19)

announced

company

Southern
Dec.

Dec. 9 it

March 5;

Edison Co.

1958. He predicted the next offering, probably in
Spring, would consist of bonds. Underwriter—Jo be
determined by competitive bidding.
Probable'bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.; The First
Boston Corp. and Dean Witter & Co. (jointly); Blyth &
Co., Inc.
:•:;/ ^
^;■

noon
(EST) on Jan. 22 for the purchase from it of
$4,140,000 equipment trust certificates (third instalment)

000 to

;

California

Dec. 19, Harold Quinton, President, announced company
would require around $70,000,000 in new financing dur¬
the

Norfolk & Western Ry. 1(1/22)
Bids are expected to be received by. this .company up

'Northern

/Illinois Central RR."

Co., Inc., Coral Gables,

New

Nov. 18 it

in January for the purchase from it of

and

plans to issue and sell
$6,000,000 of first mortgage bonds in the Spring of 1958.
Underwriter—To be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Lee
Higginson Corp.; Equitable Securities Corp. and Eastman
Dillon, Union Securities & Co. (jointly); Kidder, Pea¬
body & Co. and Stone & Webster Securities Corp.

Loeb &

Bids

common

new

York, N. Y., handled previous public
offering of 500,000 shares of common stock at $3.25 per
share in July, 1956.

announced company

was

announced company

issue Of

Underwriter—James II. Price &

authorized

1,000,000 shares (par $1) and 10,000 shares outstanding.
Office—Vancouver, B. C., Canada.

Dec. 4 it

SEC

was

shares and the price at

Fund, Ltd.

Co.

;

Airlines, Inc.

plans to register 'with
.Stock, the number of
which they Will be offered not
yet determined. The authorized common stock has been
increased from 7,500,000 to 15,000,000 shares. Proceeds
—To finance route expansion and for working capital.
the

Underwriter—For any bonds,
by competitive mddirig. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Tnk First Boston Corp.;
Glore, Forgan.& Co.; Blyth & Co., Inc. Bids—Expected

Co.; Glore, Forgan & Co. andv.Wv C. Langley &
(jointly). Bids—Scheduled to be received on Feb. 18.

was

1958

Riddle

announced company has

raise

•

plans to issue and
sell 75,000 shares of cumulative preferred stook (par
$100). Proceeds—To repay bank loans. Underwriter—
To be determined by competitive bidding.. Probable bid¬
ders: Stone & Webster Securities lGor.p.;viLehman Bro¬
thers and Equitable Securities: Gorpi/(iointiy); Kuhn,
company

Oct. 21 ft

applied to SEC
permission to issue and sell in the United States its

Dec.

Gulf States Utilities Co.V(2/18)'

Dec.

(1/15)

Probable, bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
"
/
Canadian

Gas Co.

For construction program.

trust certificates.

was

Electric

Service

announced
company anticipates it will
$25,000,000 of preferred stock. Proceeds—
Underwriter—May be Merrill
Lynch, Pierce, Fenner & Beane, New York. -

Aug.

sell

expected to be received by the company on
Jan. 15 for the purchase from it of $3,450,000 equipment

Nov. 25 it

Public

are

Multnomah

are expected
to be received by the company on
Jan. 23 for the purchase from it of $5,700,000 equipment
trust certificates. Probable bidders:

(2/20);

Pacific RR.

Missouri
Bids

(1/23)

Bids

Gulf Power Co.

Inc.; Kuhn, Loeb & Co;; Equitable Securities Corp.
and Shields/& Co. (j oihtly); Blyth &
Co., Inc.; Merrill
Lynch, Pierce; Fenner & Beane, Eastman Dillon, Union
Securities & Co.; White, Weld & Co. and Kidder Pea¬
body & Co; (jointly); The First Boston Corp.

ton

was

reported

approximately

Corp.

company

$35,000,000

Offering—Expected early in March.

Mississippi
Dec. 4 it

was

Power

Light Co.

announced company

plans to issue and sell,
probably in May or June of 1958, $10,000,000 of first
mortgage bonds.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart

Portland Gas & Coke Co.
Dec.

reported company plans to issue and sell
50,000 shares of cumulative preferred stock (par $100).
Proceeds
To reduce bank loans and for construction
was

—

program.

Washington

(1/22)

Underwriter—Lehman Brothers, New York.

Oct.
in

the

Natural

directors

debentures.

the

sale of $5,000,000

Proceeds—For expansion program.

derwriter—Blyth
York.

Gas Co.

authorized

& Co.,

Un¬

Inc., San Francisca and New

The Commercial and Financial Chronicle

(36)

Kidder, Peabody to Admit

vesting in 1958
Requires Balance

Kidder, Peabody & Co., 17 Wall
Street, New York City, members
of the New York Stock Exchange,
on Jan. 2 will admit Jean B. Web¬

with

Business Shares

—

with Hardy, McGauley & Co.,
1278 North Palm Avenue.

Inc.,

Annual

from

report
of
American
Shares, Inc., a balanced

ADMINISTERED FUND

■'

A mutual fund

in bonds,
common

...

stocks, with the

cause

were

prospectusTon
from your

Distributors
63 Wall

request

investment dealer

1977

Group, Incorporated

Inc.

about

held

50%

was

stocks

bulk

Street, New York 5, N. Y.

which

have

Diversification

assets

Nov. 30, 1957 shows 31.2%

stocks

common

service

Common
H.

Incoq..
Investors

INVESTING1
for

FUTURE
INCOME?

e.iMlAtJ 1925
Cttablltht.H 1925

49.3%
v

mutual fund invested
lis* of securities

in a

possible
growth of capita! and
for

selected

income in the years

in
maining
pany

ahead.

fuel

follows:

and

the

assets

the

The
divided

49.6%

was

bentures

first

declines

greatest

prices have
been
of the stocks

industrial expansion.
"The slowing of capital expen¬

prospectus

fund is available from

have

investment dealer.

your

adverse

effect

prospects of these companies.

The Parker Corporation
200

had

the

same

enced
and

seemed

sold

The stocks

companies
ice

moderate

never

of
are

advances

prices

number

which

unattractive.
of

such

found in the

the

Utility District No. 2
Grant County, Wash., revenue
bonds, 3%, 2005
,

Common

Stocks:

American

Central

Natural'' Gas

Hudson Gas &

'Corporation

CO'." "'

has

some

77"7 V-' ' J =7
Corporation

Westinghouse Electric Corp.

With

Elkins, Morris

Building,
members
of
leading
stock exchanges, announce that
Muir

has

ciated with them

representative.

Mr.

years

become

the

had

asso¬

registered

For

Muir

ciated with Eastman

past

been

asso¬

Dillon, Union

Securities & Co.

Joseph S. Kimball Joins
Bigelow, jYoung, Inc.
(Special to The Financial Chronicle)

BOSTON,
Kimball
with

Mass.

has

Bigelow,

sumed or used

Devonshire

short time.

for many years

up jn a relatively
The demand for such

services and products is relatively
constant and it tends to increase

stock

prices
anticipated
activity for the

extent

economy as a whole. While there
is
no
evidence
common
stocks
reached

base, they have
better balance

clearly reached

he
noted

years,

—

The

market

securities

fixed

for

undergone

its

reaffirms

Board's

The

CALVIN

anced

Established 1894
ONE WALL STREET,

Name

;

teristic

;

such

that

current

should

inventory

be completed

reduction

in a reason¬

able time. 7

preciation of capital and increase
of income." ;:v' 77/^7777 77777Vv.v'
Among

the

changes^ in -the

fund's investments

quarter were:
■7::

during the last
,?;777:77.7--1 >7

A' i-Vicx;-Purchases i
Company

1 ■ y:

Shares 7:

yy,,

Products.\.Idc:-£-±S~jl

Avon

24,000

Florida -Power Ss l ight Co.——!
Ford Motor, Canada, Ltd.

30,000
10,000

;

Halliburton Oil Well Cementing 10,774
Kerr-McGee

Oil -ind.,

35,000

Inc.

Louisiana Land. & Expl., Co.:15,000 '
,Min. &■ Chem. Corp. of • Aiher,—. 23,400
Hewmouht Mining Corp.. 10,000
Pan American World Airways
20,000

y..

Polaroid Corporation
Seaboard Oil Co.. 7.
Texas

Pacific Coal

15,000

-i__77--7 19,700

and Oil Co._

33,000

.,.77 7. Sales ;.;77-VMonterey Oil Company:15,000
Rayonier Inc.
5,400
Union Carbide Corp..
5,000
.

Resources Fund

Reports for Year
Net investment income of Inter¬

national Resources Fund, Inc. in¬
creased

President

his

Coleman W. Morton in

annual,

report

to the

share¬

holders. Net assets of the company
on Nov. 30, 1957 were $16,606,363

compared with $14,337,722 a year
earlier.
During the same period
shares outstanding rose to 4,424,155

from

3,106,970, and the num¬
rose to 18,011
from 13,483, an increase of 34%.
ber of shareholders

Net

asset

value

per

Nov.
to

30,1957, was $3.75, compared
$4.61 on the lesser number of

shares outstanding at the'close of
the previous fiscal year. Adjust¬

the depressing factors ing for the capital gains distribu¬
tion of 33 cents per share made
anticipated decline in busi¬
ness
spending for plant and during the period, the decline in
equipment and a slowdown in per share net asset value during
the year amounted to 11.5%, re¬
consumer
spending in certain

Street.

ball &

areas,

evidenced

Mr.

Kimball

conducted his

business, J.
Co., in Boston.

sluggish flecting the general decline in the
level of stock^prtces.

own

Kim¬

The report pointed out that in
addition, general atti¬
changed from high retrospect sharp market sell-offs,
result such as we have seen recently,
activ¬ have hot prevented our national

confidence to caution, as a
not only of lower business

ity, but also of domestic political economy from
latfer. achieving
uncertainty and sweeping Russian ever higher levels of productiv¬
advances in scientific and

military ity and prosperity. Emphasizing
that the most profitable invest¬
that ments for the long term are often
those securities which, at the mo¬

American business in 1958 will be

readjusting from boom Conditions ment, face the bleakest near-term
and inflation stress to a better earnings
prospects, Mr. Morton
balanced economy at a higlr level, expressed the opinion that despite
the currently
indicated slowing
although somewhat below the re¬
down <of industrial activity, little
cent peak.
has happened* to alter the basic
factors which encourage the long-

Now With Walston

for

(Special to The Financial Chronicle)

CHICAGO, 111.—Robert A. Spira
upon request

Co.,

Lord, Ahbi-tt & Co.
'

«—

Chicago

—•

Atlanta

—

now

Inc.,

Street.
Los Angeles

connected with Walston &

201

South

was

formerly

Arthur M. Krensky

for, growtj^ based upon
selection of stocks, will be
attractive to < conservative inves¬
tors interested in longer-term ap¬
proper

Among

In,

investment

Prospectus

New York

vesting

term

investor to

view the future

with confidence.

■

-7

growth stojck jpvesting which will

year

readjustments.;
Among tile supnorting or cushion¬
ing factors in the economy are a
generally high level of consumer
incomes
and
employment,
al¬
though the latter is below peak
levels.
Federal, state and iocal
government
expenditures
a re
high, and rising. Consumption of
steel during the years is estimated
to be considerably above the pres¬
ent
production rate,
indicating

between

NEW YORK 5

Address.

777':. 7

have

Company

selected

;

to $427,802 in the fiscal
ended Nov. 30, 1957, from a
total of $331,660 the previous year,
77 Early 1958 will be marked by
it
was
announced
Dec.
27
by
numerous
cross-currents, charac¬
economy.

sales.

supervises a portfolio bal¬
bonds and preferred stocks
stability, and common stocks
selected for growth possibilities.

BULLOCK

"repdrf 7 Cb^merited: "The
^gars land the next dec¬

traditional

continuing business readjustment,
Mr. Morgan sees it merely as a
temporary
interruption
in
the
long-term growth trend of the

tudes

A Balanced Investment Fund

mail this ad to

The

be many aiid varied;: regardless of

striking

flexibility, whereby m o n eta r y
policy is used as a supporting as
well as a restraining measure.
*
While 1958 will be a year of

Inc.,

viding diversified, managed investment in
Canada. For free prospectus

ago.

ade should offer opportunities for

income

improvement, according to Mr.
Morgan, Much of this improve¬

associated

Young,

Business Shares

pro¬

year

next few

bonds and preferred

-7-

stocks—has

actio

ye^r/ago.'

10,201 ,G34;a
-

outstanding on Nov. 30
13,0.43,633,7 compared with

retail trade reports and lower auto

Joseph

become

American
a

Shares
were

stocks are

common

Mr. Morgan concluded

incorporated mutual fund

high, against 32,570

said.
For ex¬
that yields of

fields.

—A U. S.

compared with $10.16 a year ago.
The number, of shareholders on
Nov. 30 totaled,53,029, also a new

are an

7'7

"The services and products of¬
fered by these companies are con¬

that the 1957

common

business

lower

high, compared with $103,641,791
on Nov. 30, 1956.
Net asset value
per share was $9.41, which, to¬
gether-with a capital gain dis¬
tribution of 21
cents per share
this
month, amounted to $9.62,

Electric

General Foods

non-durable

Mr. Morgan stated

decline
to

in its annual report
ended Nov. 30, 1957,
reports total net assets of $131,180,648, a new year-end • record

interim economic fluctuations. In¬

American

„

American Tel. & Tel. Co.

John. B.

calls

economy."

tion in the rediscount rate by the
He be¬

1st mtge. 31971

goods,, and, to some extent, among
the producers of fuel and raw
".

the

Massachusetts Investors Growth
Stock Fund,

lor the year

ment has resulted from the reduc¬

Tennessee Gas Transmission Co.

pro¬

among

consumers

materials.

mtge,

serv¬

industries,

ducers of

1st

PHILADELPHIA, Pa.—Elkins,
At Morris, Stokes & Co., Land Title

time, stocks of many
companies
with
equally
good records of growth in earn¬
ings in the postwar years experi¬

Boston, Mass.

Co.

mtge.

other

Berkeley Street

3%, 1981
Georgia Power
3 Mi, 1981

1st

Public

ditures, the rise in productive ca¬
pacities and the resulting increase
in competition for business vol¬
ume which has been taking place

each

a%, 1977 "C"

3%, 1981 7

the

many

Morgan

competition
Vigorous com¬
petition after many years of war,
defense, and high boom condi¬
tions, means in his judgment that
the profits will be made only by
the best managed companies in
the most favorably situated in¬

Inc. de¬

1st mtge. 3s, 1975
■
Potomac Edison Co. 1st and coll.

producing machinery, equipment,
and other durable or capital goods
which do well in periods of great

what Mr.

"the return of normal

Power
Co.
1st
mtge.
3%, 1982
7 Federal Reserve Board.
Michigan Consolidated Gas Co. lieves that the Reserve

to the stock market,

choice in the purchase and reten¬
tion of individual securities, be¬

moderately above those af¬
forded by good-grade bonds,
7

Illinois

cember 1956.

.^mutual fund whose

Furthermore,. they

exercise the most prudent

ample,

•

Consumers Power Co.

re¬

investment

their

Assets Gain

now

Columbia Gas System,

Government

that

Bonds:

corporate bonds; 7.9
preferred stocks; 0.5 guaranteed
railroad stocks;
1.1% cash. Net
assets were $25,646,831 on Nov. 30,
1957
compared with $28,805,358
on Nov. 30;
1956, before the capi¬
tal gains distribution paid in De¬

Mr. Prankard comments

stocks."

recent

Co.

Eliminations

28.3

In regard

funds placed in fixed-income se¬
curities with that placed in com¬

representative

com¬

stocks.

common

12.9

bonds;

proportion

levels, earnings, and
dividends, than has prevailed in

indus¬

raw

Mr.

with business

Stocks:

Heinz

investors,"

Morgan said, "should balance the

have
Transmission

United States Plywood Corp.

in the

goods,
material,
and 1.4%
in producers of con¬
sumers
durable goods, a total of
in

Co. 5.68%

Corp.^6.70%

nondurable

consumer

4.2%

Gas

Eastern

Texas

777/

"Conservative

dustries.

cum.

tries, 12.5% in stocks of producers
of

Co.

Stocks:

4%%

the

Light

f;
cumulative
General Telephone Co. of Cali¬
fornia 5% cum.
New Orleans Public Service Inc.

equity investments."

our

Power

El Paso Natural
'

assets

our

Industries,

4%%, 1987

Preferred

O i 1

5%%, 1977

Louisiana

years.
our

Fund.

ton

Associates Investment Co. 5*4%,

share,

than

to Walter L. Morgan, Presi¬
dent of the $600 million Welling¬

cause

1977

high-grade bonds
and preferred stocks and partly
because the readjustment that has
been taking place favors the type
of

Co. 5s, 1983

Associates Investment Co. 5%%,

the

in
a

quite small," writes H. I. Prankard, 2nd, President, "partly be¬

in accordance with

man¬

cent

"The decline in

proportions "balanced" '
agement's judgment.

;

ing

mon

Amerian Telephone & Telegraph

requires

Mass. Growl fi
Slock Fund

carefully selected than
at any
time in the past decade," accord¬

should

Stock

income

amounted to 15 cents

one-half

••

from

Dividends

year

portfolio in the year
30, 1957 were as fol¬

Nov.

Kerr-McGee

investing '

preferred and

500

eliminated

Additious

Index.

77 /v..: :.77; op
■; '7777
Group Securities, inc.
Incorporated 19337,
I

Poor's

Bonds:

Standard

lows:

share. Asset value a year
earlier, after adjustment for a
capital gains distribution of nine
cents, was $3.74 a share—a net
decline in the year of 3%, com¬
pared
with
7M> %
decline
in

THE HIUY

added

the

ended

fund, shows net assets at Nov. 30,
1957 fiscal year end equivalent to

$3.63

population.
reason to expect

every

Issues

Only 3 Percent
Business

the stocks of these companies to
perform relatively well while the
current readjustment continues."

Asset Value Off

Anton A.
become affiliated
Fla.

growth

There

(Special to The Financial Chronicle

SARASOTA,
Cedervall has

the

1958

balance of securities

sound

By ROBERT R. RICH

McGauley

Joins Hardy,

"Investing

partnership.

ster to limited

Thursday, January 2, 1958

...

cash

Nov.
and

30, the company held

short-term

Gov¬

Salle

ernments in the amount of

with

207, equal

to t14%

of net assets.

According

the

reportv^these

& Co., Inc. "

$2,382,-

Volume

Number

187

5704

The Commercial and Financial Chronicle

(37)
funds
in

available for investment

are

special situations .currently

der

study, and forypther

opportunities+ that
sented

in such complex
energy,
drugs,
chemicals, nucleonics, natural gas
and
petroleum and that not all
growth companies have records

buying
be

may

panies

pre¬

during the

remaining pe¬
riod of economic readjustment.
The

four

basic

broad

similar

(1) Combined military and eco¬
competition • with
world

substantial or prolonged idleless of productive capacity-in-our
free world.*
'■/ • '••>:" --v.-:/ /
The

growth

strong

which have;characterized
era

are

the

treiids

* current v"

likely to accelerate once
readjustments
are

£<

|p| ** I

past.

Pierce,Fenner
Smith, ef-

progress

in the free world without

creating

and

fective

substantially enlarged
the

demand for

materials of [

raw

industry, and the major known

mutual funds selling so
Why has this become a big
are

well?
industry?

What is so good about
Well, many know the an-

them?

and

s w er

will not dis-

the
of

this for

cuss

re¬

the firm's fis¬

long.

Mutual

of many natural' resources
outside
the
United

serves

cal year.
The "Smith"

funds

provide

service needed

located

are

"radiation"

States.

,'/

....

;

Winthrop
Smith

Hiram

(4) Inflation is not ra: problem
only of the past.

IWi

who

the

valuable

required
by the investing
public.

and

started

with

Winthrop H. Smith

firm

* f
41 years ago
$7 a week runner and lias
a top partner since 1940.-

■'./.*

Putnam Growth

been

Assets Over

Smith

Mr.

bom

was

Total net assets of

$1,000,-

over

few weeks

000 and morb than 400rSharehold-

World

later.

War

After

stint

Second

announced by The Putnam
Growth
Fund,
a
new
mutual

Lieutenant in the Field Artillery,

investment fund with emphasis on

quickly advanced from stock sales-

ers are

capital

long-term
1

duced

he itlullJVU to his firm where he
returned

„

Nov. 6,

1XC

growth, .intro'

..1 AC

*1957.

Charles*,M. Werly,

Sales Manager of

Trustee,:

1940 he

i„

technique.

arid. that as many
people as poso.sible radiate this information on

The

funds

other words, I do not think

going to have

our

ering

the

their

orders—I

as¬

with

dealers

are now

another

fundamental statistic.
_

•

PKCiit time

Merrill

T vnch

KA Weree ' !d Co
L in u'o inrLS
in
reSulted
the
largest
,a

Size

This, in turn, points the finger
mutual funds.

As you

know, the normal dealer concession on mutual funds is typically
q% and a stock exchange order

AC!

mrnffimVKrfiS6

same

com-

Other Methods

are

to develop addi-

ways

tional prospects by, for
example,
watching real estate transactions^

watching, and I hate to say this',
the obituaries, and many other
name-getting devices. By organizing a list of prospects so that
some

and clos-

names

+/-V

be-

are

n/l/lo/l

added

the

to the salesman.Usually the house list. Sooner or later there will
begin to

'Air^Frwiuet?

Connecticut .General

the

ing,sureiof b.eing w.eU known

nAmnoiii'tini,

This

311 investment man in your
mumty.
There

Comimssion

The appeal of mutual funds is,
JS ^ou know, a fundamental one., about s/4 0f

J1;,....

chief liaison

was

between

in-

F,,n"

can

derstand who is the expert in mutual funds as well as other securi^es ,and establish . this fact so
firmly .in their minds that they
almost unconsciously know who
recommend when the discuss*on °f investments comes up. One
can d? oae> own radiating by

■

management toproiessionals, the keeps more than half to threeadvantage of liquidity and the quarters of a stock exchange cominvested in common stocks, with
"wire ^"vemence of ownership.
Fur- mission, so that of a $10,00? order,
"wire
the
cash
in
the balance in bonds and cash, vionco" in ihe it S and Mr Smith
m
miwi Mr
Smith
0 ?4? funds» Ltbey the salesman compensation for
house
the U
?re all so different that a partleu- doing the work might well be $25
the® Fun'd°inclu'de
qmlth^mS^We bvtide with ]ar
Can be,pick.ed to
t,he
$30; while a comparable $10,000
tbit at thp

One

spreading himself throughout tho
community—by joining clubs and
organizations and in general mak-

are

out and solicit

commission commensurate with
the work done.
. i
.. . .

2y2 mil- directly at

telephone

$9 bil¬
held by

shareholders.

we are

Soliciting business is

over

■

customers both-

think

going to have to
business.

lion

J. C. Hunsaker, Jr.

look forward

can

jittjers are over and the tax switchjng days are behind us, to a period
0f pretty low activity ahead
In

some

j ion

the present stock market,

pay

total

sets of mutual
,

j think
soon

industry high-cost operation and customers
big one. are and should be glad to

others.

weather pattern of many of the- .thing. One can begin one's radiaother 150 funds provide simiiar tidh :7 by " making
sure
that
all
good vehicles.
friends-and relatives firmly ,un-

Manager

J.1

1JT

sales-

is about standard, while calling on
fn addition to rae theory of safety You have all done the arithmetic ing/ some new
ill numbers throuch
riiversiticfl—
+a llin imfA*7A1'Al->lo
inr*
AAnotAnflw
the entire firm. \1} nl\mbers through diversifica- as to the unfavorable comparison ing". constantly

Sales

Bond

man
'

graduate of Amherst College and
went to work for Merrill Lynch

$1,000,000

The

South

Hadley Falls, Mass. in 1893. He is

most insurance salesmen
on the "radiation" prin-

ciple whereby they make sure that
as many
people as possible know
they are in the insurance business

every-

.Why

March

1 9 58,
-beginning

know,
operate

as soon as present
Calls for intensive sell¬

will

Merrill Lynch,

^decline in investor interest

man's

be changed to

firm

the

* *jg

prospects in your community and
good way of doing this is to
take a page from the book of the
life insurance salesmen. As
many-

one

Mr. Hun-

ever.

stock jitters and tax switching ceases.
ing effort, cites data^ indicating prospects abound almost
where, and advises salesman to emulate the insurance

n g,
partner.
the name of

|f|

appealing and timely than

saker anticipates

postwar

(3) There cannot be growth

official who

selling* mutual funds are offered by a mutual fund
finds today's uncertain stock
market period makes

mutual funds

that in order to honor the direct-

JJhC free *

economies in 'the

and shoe-leather begins. The
job
is to get to know the mutual fund

Pointers

announced

Beane

course, is that all
that the "World Is
your

Vice-President, Gas Industries Fund, Inc.
Partner, Colonial Management Association, Boston, Mass.

ntner
Fenner

means

By JEROME C. HUNSAKER>

Mutual Funds to Americans

Michael W. McCarthy, managing
of Merrill Lynch, Pierce,

any

this

apple." Mutual fund prospects are
all
around
you
and it's just a
matter of finding them and de¬
veloping them into good custom¬
ers.
This! is where the hard work

issues

Lynch Firm lo
Change Its Name

Communism will not long permi

(2)

the

Merrill

nomic

shape the

investment policy of International
Resources Fund:

■

those

The point, of

Selling and Attracting

S1fied Growth Stock Fund, Inc.

considerations
to

atomic

selected for investment by Diver-

report listed the following

which will continue

engaged

fields

un¬

develop

certain percent-

age of closing and one will begin

to find out that calls on. say 10
prospects, will result in Pro sales
and that it is to one's advantage

to keep a backlog of

more pros-

Life, Con- til the latter's death in late 1956.
prospecting calls for
»
nught take $600 and the salesman - Efficient prosp
tinental Casualty,, Dominion At that time Smith became Diof
stock
} ^
the organization of time and this
Stores, Federal Insurance, Florida
as
18
Perhaps can best be done by sitPower & Light, Grolier Society,
Mr
Sniith
has
served
as'
many in ting down at the beginning of the
Houston Lighting & Power, InterVw
and
Governor had a
and
"
week and organizing the calls that
national Business Machines,
ntfon of Stock this has aftecten thp
and
So far 1 have covered wh^ mu~ are Planned for during each week,
national Utilities, National Lead,
much as -wd
as
Gov^" any
Such a »ni™sal This action will establish whether
Outboard Marine, Polaroid, Royal
appeab the various kinds of mu- or not there is scheduled an adeevnor 0| (be New York Stock Exother. Good oil stocks are off as
Dutch Petroleum, Schering Corp.,
iq4<AT WbTie Tn^Ciii- Zh,
....

?s'^er aUranita^
nrett^heaw^ori4^tten

Pi^dent
Inter-^

ofl

gtc^geAXS

Public

Service,

Standard Oil of New Jersey, Su¬

perior Oil Company.

^a"gtT
he
eago
lie

was
was

Chicago
served

Long Reports
Qtlr

vtx IJtV Ux

OllVt

of Amherst,

oke and

,f
of

and In

of the Busi-

Conduct Committee.

He is

Mount Holy-

Colby Colleges."
.

The lirm also announced the
retirement of Alpheus C. Beane as
by-and- both a general and limited part-

opinion the industry is

our

are^behind1 the
117

iho

iim«

Growth companie: s,
large, "plow back" a vhieh ner^high
centage
of
their
earnings into
research and development. Anew
study by Hugh W. Long & to.
indicates just how high this per¬
centage may be. According to the

mother, Mrs. Marian B. Beane of since
Greenwich, Conn., will continue
a
as a limited partner in the lirm. off 100
limited
firm.

study,-which

issued

covers

the four years

effective-Feb.

69.1%

thpir
their

parn;n(fC

Mr. Alpheus

Lynch,

C. Beane of Merrill

Pierce,

Commission's

list

"All

Manufacturing" companies, which
(lope
does

include
include

not
no.

service
service

indusmaus

tries.
Were

these

increase

The

the

growth

utilize

their sales and profits?

study

same

companies
earnings

retained

found

four

year

that,

MelJn

Lvnch

made
an

that

1958

mteht

have

Feb
I

° tnat i mibni nave
my own
associated with

become

;thermembe7of
*r

from

retire

opportunity to form

firm

■»

the

New

stock

york

Exchange.

...

;^n_
,

and

this

very

timely, at

-mriiintf

Nnv

miitnaf f^ind^ Ever
funds. FvJr
mutual

nn
on

have had

summer we

i^ summeiwe^ a ve| a
,

Points
po:ints^ b^nced up

}urther declined

influenced
anH

«6

Hive

one

d'av-

01 b's movements, up $b one day,
off
$5 the next.

sort of

scary

mvir

Obviously, this is

climate in which

winniurf

hnrco

Ohxri

ImS nkn
d\ tim!
Ip
chn!u^ seriously consider !lfhl+haf
cA?,*ni1cn
should
whether

ihe

confidence

are

Diversified

currently

Growth

FundVIn<r- a mutual fund
study points

held

n#i(!e!in(<o

tion'ca'n

irsio

clnnlr

rru-

overcoml

wUh

a'"^-

Stock

the

facts of life

g.de

^
an

extremely difficult for the avern
growth and
age investor to follow the diver- stature of all Wall Street cannot
gent movements of the many com- be over-estimated."

and

somewhat

the

sales

interested

making

package of natural

money,

resource

and

VAAV

IJiVOV^VlO

Ulb

XWI

lllUtUQl

difficult

Pleached by our industry about calls are organized, and these basic
1

being the real muUC1I1«
1UU

ingredients for selling
13
s

—

enthu-

tual fund prospect, it is a fact that siasm and confidence—will
a good proportion of our stock- an immediate effect unon the
holderg and the customers of other ^AwaPted

mutual funds are big investors,
more than

with
it is

?.
dicates that the typical

rri8

owner

a thoi'ough knowIedge o£ their
product, have the confidence that
'

mutual fund shares has an annual the Product they are selling has
income of $7,000 and holds mutual a definite and universal appeal,
cionn

enthusiastically

stocks, $9,200 worth of life insur-

ance.
or

and'^.eog

injDank^acrounts

This study was
questionnaires sent

savings bonds.
result

11,462
The

Present

mutual

fund

prospects

anywhere from below $7,-

annually to well up into the
higher income brackets. The study
further reveals that mutual fund
shareholders have a variety of ^
occupations, and are well represented in every age group with a

good percentage of the shareholders
in
the oO-years-of-age-or-

the

Boston

talk

Mr.

Investment

all-

Hun*aker before
Club.

tals,'and churches and others that
upaviiv

mi,t,,n1

imest heavily in mutual lUnOS.

are

thia

and

axxux
peo~

exposed «to this enthusi-

aSm throughout each work day.

sftbreholders.

Sivfd,,aia?nveStOTS ftere^r^also

pie

point that I wish to make

that

range

^tisZtional investorshospisucS
colleges, unions, banks,

•From

neo-

;

of f

» he -ants more than a crosssection, then that sort of

have

$25,000 invested.
1 wil1 conclude with these ob¬
interesting here to note that servations. Better salesmen have

g00d answer.

will

time^and

down

oninion the pres-

spon- including his name in the firm growth utilities is

ouf th^^t^wmuld^be

the

Excellent Time for Mutuals

Lynch will honor Directing
Partner Winthrop
H. Smith by

curious

and

wasted

are for mutual psychological edge. By this I mean
j should first mention that that
confidence and enthusiasm
J
A B.uu.» l xnexiuuxi ixxdi
quite contrary to the song that is are better when one knows that

wh° the prospects

the

rill

made,

Now let's find Qut specifically thing to explain, provide a good

is the time to put money

manufacturing-companies.
And
"I want to be in a position ent market is
a difficult one to put
the growth company net profits where my 26 years experience in
cust0mers' money safely to work
increased 78% as against 43% for all phases of
the security and jn
any
individual
issue.
Conall manufacturing companies.
commodity brokerage business can
verse]y> jt is an excellent time in
The 46 growth companies se- be more fully utilized.
which to buy averages in the form
lected for comparison are those
"I am happy to learn that Mer- of a mutual fund. If a fellow is
whose

eliminate much

AVho Buys Mutuals?

sales will

ThJ

be made in selling

Iica knowledge and confidence,
Zw-1 typicai mutual fund holder also
^ woik» The difficulty is how
own^
^12 Q00 worth of cornorste
sure thst enough new
which particular issue —which
2U„
now

of" fhe^erowth7"comcTanTes "rose Part our industry will play in the
orpine , growm companies lose i
(S^ih
J Ampwpn
44%, as against only 15% for all future growth of Ameiica.

can

funds"

mutual

correction has not been made

and

in
be
policy-making tual fund,

I have great

sales

4-U^J.

fn fbnf mar
to that mai-

dweP
dwell

haveyad0gnrcater paTtkipaUon6
management

during

period,

decision

<<Mv

able

retirement

the

„

Ihis

comparas
with, an
average
of
37.5% for the Dow-Jones companies and 51.8% for the Federal

Trade

Beane

Fenner

the following statement in

rphi<1

earnings.

since

1953-56 inclusive, 46 growth com- connection
with
panies plowed back, on average, fr0m that firm:
fioic/

His

1958.

28,

TpF?fnrn
turn

let

nnw
now

think it

parade

^4-a

WpII
Well

ket.

that

money

very

much undervalued at the present
time. From the market point of

•

Clnilv

vliH ly

ner

tUal funds have

aT^O^Fo^O^^nd the tual funds1 theJe. are.to meet the ^uate number of cold calls, it will
iL mnL ones
the smaller nn'l! 50%rOP-cutah! half, many naeds of investors, and the give some idea as tfl how many

Trade

Chairman

trustee

hKL

director

a
a

5j53°t1? .tim.^as
Jh+at aI1

1"is

busineSes

Board

ness

rVrfcwfli

....

tha/w^th^he ^'decline
fhe
rece?ve
fecting Partner^5^fbe tnl^thnV^latten m^h

Southwestern

........

The Commercial and Financial Chronicle

Thursday, January 2, 1958

(38)

The following statistical tabulations cover production and other figures for th#

Indications of Current

latest week
week

Business Activity
Equivalent to—
.,
Steel ingots and castings (net tons)

gallons each)

.Jan,

Week

Jan.

§1,510,000

average (bbls. or

stills—daily average (bbls.).
Dec. 20
Gasoline ontput (bbls.)
•
Dec. 20
Kerosene output (bbls.).
Dec. 20
Distillate fuel oil output (bbls.)
*
—
Dec.20
Residual fuel oil output (bbls.)
—••—
Stocks at refineries, bulk terminals, in transit, in pipe lines—Dec. 20
Finished and unfinlsiied gasoline (bbls.) at
Dec. 20
(bbls.) at

Dec. 20
Dec. 20
Dec. 20

**.

(bbls.) at
Residual fuel oil (bbls.) at

Distillate fuel oil

7,699,000

8,061,000

27,264,000
2,436,000
13,106,000

27,336,000

28,018.000

2,167.000

26,715,000
2,061,000

13,118,000

12,138,000

13,945,000

7,581,000
189,486,000

7,761,000
188,845,000

27,719,000

29,904,000

152,383,000

59,034,000

59,286,000

<42,577,000

590,343

603,036

632,763

698,424

555,292

528,911

570,575

Dec. 26

Dec. 2b
Dec. 20

and municipal

State

$273,767,000

97,323,000

169,814,000

168,291,000

208,913,000

133,426,000

135,124,000

145,675,000

191,389,000

113,253,000

16,417,000

22,616,000

17,524,000

20,173,000
r

469,000

484,000

275

*266

155

■

12,412,000

Dec. 26

166

276

Electrolytic

338;.
!

5.967c

•

♦'

Other
All

$66.42

$63.04

$32.83

$32,00

$32.33

•

26.600c

26.300c

25.975c

35.700c

21.950c

23.100c

22.800c

177

Dec. 25
Dec. 25
Dec. 25

13.000c

13.500c

12.800c

13.300c

10.500c

10.000c

-«

',-'-2..,:i8
J'" 114

Dec. 25
—Dec. 25
Dec. 25

(primary pig. 90#) at

Straits tin

York)

(New

at——

36.000c

26.000c

92.625c

Aaa

———

92.750c

87.125c

9-2.65

93.13

buildings

»'

v
'

•;'

-,•!'•■ 21

216 2-22-:
2-

•'!

475

•

-570 2

■

•

133

92.20

Highways

431

^ 't.1

22—

—..—22

;

210'

262

31,.
344

-1,042

403

234

325

41;;',S' .j

'
'

l—-22—

service

and

•• '

•

■

,107.)

1,410'
53

361

,.v

" :

•

buildings———

1 1
«' ' ;

2—2_2_22.__2:——2

' 37

132

110

and

water

405

■'

;

' 555

105

All

other

_"—_—2_22__'

enterprises

service

and

public

development 2—-i—

——2—12-2222222*.

•

■

•'

;

•

..11

-•100

110

32 ,

;

326

;

118

Public

117"

'•

2„ _2—22--2——
systems'—
———^

;

■

Sewer

87.75

■■

;

95.32

89.23

100.32

■97 ? :•

405

12—,2.
22x.l——_2-H _2

facilities

Military

101.375c

91.88

92.79
100.98

95.77

•'

BUSINESS FAILURES—DUN

98.88

INC.—Month

97.16

96.38

91.91

97.78

92.06

91.34

89.09

95.77

82.65

80.93

89.37

Wholesale

94.12

..Dec. 31

90.48

89.23

86.65

Railroad Group
Public Utilities Group——
Industrials Group —

..Dec. 31

92.06

91.91

89.37

96.69

.Dec. 31

96.07

95.77

.91.62

95.47

Commercial

number——22—2—2

—

166

544
176

194

——i-——.

214

559

482

•

...

.—-.—.-*22-^-—2—.— •

service

•

■

114

lr-1-r-—.

—

number

Construction

213"

1_————;

number

Retail

BRADSTREET,

November:

Manufacturing

82.27

Dec. 31

Baa

■

Dec. 31
.

199

74
■

-•

•.-<:•».

nonresidential

Dec. 31

Aa
A

,48

1,164

Conservation

.Dec. 31
—————..Dec. 31

—

164
1

47; •;•:>•

■

•

Administrative
Other

•

Government Bonds——————-—Dec. 31

U. 8.

Industrial

14.000c

MOODY'S BOND PRICES DAILY AVERAGES:

Average corporate

«'•

«-•

_————

construction

13.500c

Aluminum

-'28

25.000c

.—

•>165

78'

instlt'uitidnal————%!?<•>»

Hospital and institutional" 2—22—1—

15.800c

••

•

1—2—21722222———_

Educational

16.000c

12.800c

329

••

;,=>

155

utilities 2—-V-——2—"''1^*:'"
•;
private
2—-

Nonresidential

33.400c

Louis)
(delivered)

C ".*>;'•

216

i 46

Residential buildings
>

Dec. 25

(St.

332

153

public

other

Public

$63.50

(East St. Louis) at

•

219

_2__222~—

Railroad

5.622c

...Dec. 25

Zinc

42
804
276

h ~m

construction
—221_—
Public utilities 2——————til——2—

J''-'

5.967c

Export refinery at..
Lead (New York) at.
tZinc

339
v

256

-179

•

and garageS— ^' 1 ^
buildings
-

Farm

174

Domestic refinery at

Lead

1,140

806

'"332 -V

Telephone and .telegraph-

—

1,521

:
:

2,822

'46

251

•Social and recreational --i.———I

12,227,000

QUOTATIONS):
*

'802

Miscellaneous '2-——X—

■■■'

copper—

1,125
■*'
355'

warehousedj2-J

and

1,528

1.085

•

——2—2—_—r_2.

•

265

235

PRICES:

3.057

1,474

$3,964.

Pig Iron Oper gross ton)
Scrap steel (per gross ton)
A

2,950

7
■
$4,467

$4,114

12TL-—2—ill'2^-

restaurants,

Hospital " and

569,000

12,136,000 '

12,570,000

Dec. 21
DUN

—

INC.

(E.

—2_——

(honfarm)--l—•

nonresidential

Educational

Dec. 24
Dec. 24
Dec. 24

;—
INDUSTRIAL)

I..

•

PRICES

$924/443,000

;

—

units

buildings

Stores,
Other

■

METAL

——$1,223,632,000$1,224,821,000

millions)':

buildings

Office

•'?

(per lb.).

steel

-142,870,000

Commercial ■' ——2--—7

11,334,000

9,480,000
,, 490,000

♦8,910,000

9,380,000

..Dec. 21
—.Dec. 21

INSTITUTE:
Electric output (in 000 kwh.)
BRADSTREET,

192,249,000

Additions and alterations '"'1—222—1_"\/•■
Nonhousekeeping
—2——22
2 *
" >"
Nonresidential buildings
—22L22, "
Industrial
2——
Z--'~ :

148,848,000

122,226,000
151,541,000

ELECTRIC

Finished

9,700,000

210,791,000

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
8YSTEM—1947-49 AVERAGE = 100
Dec. 21

IRON AGE COMPOSITE

(in

Nov.

dwellings

./Religious

BUREAU OF MINES) :
Bituminous cbai and lignite (tons)-.....:
Pennsylvania anthracite (tons)—

(COMMERCIAL AND

93,750,000

■

.Dec. 20

Federal

FAILURES

cpristruction

New

$282,274,000

$378,727,000

$265,614,000

COAL OUTPUT (U. S.

EDISON

133,954.000

63,580,000

661,943

;

■

215,386,000

construction

Public

15.381,000

212,766,000
,'-r

Residential

295,077,000

10,559,000

;

g. DEFT.

CONSTRUCTION—U.

Private

$277,461,000

464,590,000

8,906,000

—

new! construction

Total

57,674,000

credits—..

$248,287,000

459,495,000

—

LABOR—Month

134,819,000

.$268,094,000

goods stored and shipped between
countries
———1

BUILDING

32,029,000

169,877,000

159,275,000

warehouse

Ago

30;

Total

8,856,000

180,543,000

•

construction

Private

7,107,000

183,390,000
32,942,000

•

Nov.

.i„—„.22_l
—■—_—2—2_l_it
shipments
——C
„2„!_.

foreign

construction

U. 8.

Year

Month

FEDERAL RESERVE BANK

—

exchange

Based

2,594.000

OUT¬

—jz.—__

„

Dollar

ACCEPTANCES

YORK—As

NEW

Domestic

Dec. 21
Revenue freight received from connections (no. of cars)—^Dec. 14
CIVIL ENGINEERING CONSTRUCTION — ENGINEERING
Total

DOLLAR

Domestic

7,376,100

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)

NEWS-RECORD:

2,490,000

6,832,370

6,914,800

of that date:

are as

Month
BANKERS'

97,3

1,831,000

*1,366,000

117,712,000

of quotations,

cases

Ago

71.5

6,884,200
7,774,000

.Dec. 20

—

or,

either for the

are

Latest

Imports
Exports

Crude runs to

Kerosene

Ago

*53.4

§59.0

that date,

Year

STANDING

—

AMERICAN PETROLEUM INSTITUTE I
Crude oil and condensate output—daily

Month

W«k

AMERICAN IRON AND STEEL INSTITUTE:
Indicated steel operations (percent of capacity)

month ended

Latest

Dates shown in first column

month available.

•

'•

/•.,

171

•

MOODY'S BOND YIELD DAILY AVERAGES:
U

..Dec. 31

4.26

3.69

3.73

3.93

3.20

3.13

4.22

—Dec. 31
—Dec. 31

corporate

Aaa

3.09

_Dec. 31

Government Bonds.

Average

3.98

4.48 '

4.32

..Dee. 31

Baa

_Dec.-3L

4.97

5.00

5.11

.rDec. 31
.Dec. 31

4.38

4.47

4.27

4.28

4.46-

Utilities

Public

Group
Group —

Industrials

COMMODITY

MOODY'S

Production

4.02

4.30

4.04

391.2

394.6

389.6

441.6

AVERAGE

368,256

388,664

FOR

ACCOUNT

Short sales

Other

Total

...

Total

Dec.

397,110
44,900

403,500
95,800

403,520

426,100

Dec.

off

448,420

521,900

SECURITIES

Odd-lot sales by dealers
Number of shares—

EXCHANGE

Stocks

375,450

2—22

—ts.2-22t.l2-

—

Spinning spindles in

place •on Noy.< 2-^-r—
011 Nov. ,2.2——
(000's omitted) Nov. 2

736,115

472,330

712,489

Active

spindle hours per spindle in place »Oct.-

2,400,025

2,933,712

2,151,330

2,713,335

480,000

709,860

612,100

503,320

1,588.840

2,315.129

AVERAGE

2,818,449

All

1,225,767
$50,692,078

1,257,516

1,277.297

$52,512,111

$79,932,473

911,726

1,058,087

1,084,277

1,045,486

11,791

20,056

884,080

_■

$38,131,123

•

1.072,486

$43,552,805

$43,101,315

320,570

297,490

Dec,

320,570

297,490

182^2 80

227^880

452,460

480,370

589,640

649,190

'•

227,880

Total sales

WHOLESALE PRICES, NEW

SERIES —U.

III
DEPT.

663,830
11,668,470

12,332,300

979,860

9,200,470

12,618,720

10,180.330

13,216,440

14.054,550

•

117.8

118.2

.Dec. 24

92.8

91.6 "

88.4

.Dec. 24

107.3

106.0-

103.3

.Dec. 24

95.0

91.5

81.1

125.8

125.6

124.7

Amer.(Tel.'& Tel.)

;—I J.——2

BOARD—Mdnth

—

HOME

"•

than farm and

foods!

.Dec, 24

^Includes 1,030,000 barrels of foreign crude runs.

J' as a®ainst dan. 1,

1956 basis of 128,363.090 tons.-

Monthly Investment Plan.
tPrime Western Zinc sold
one-half cent a pound, a Not

available*

IBased on new annual capacity of 133,495,150 tons as
tNumber of orders not reported since introduction of
East;St. Louis exceeds

Miscellaneous

4.Q5

7.82

6.02

5.17

4.86

Total

4.37

3.74

3.30

4.68

4.25

4.58

BRITAIN

£10,998,000

November

LOAN

Oct. •' (OOO's

£50,280,000--427*472,000

BANK

omitted) :

$854,969
.121,094

—

Institutions.;
—„—!-2_

—

$847,957
lw.4,263

353,541

"474.741

i21,439

182,855

-.321,176
r.

$796,233'. ;

394,803
131,389

»■

288,479

.391,857

-343.183

...

delivered basis at centers where freight from

5,08

4.84

3.56

_J_2—2———
lending

4.45
""

NON-FARM

banks

Individuals
■.j

146
147

5.04

and

savings

V
;

7.71

loan associations-—*.—
2- ;
Insurance
companies
-^-2——xBank and trustr companies!—_'2__222
2_ '
Mutual

2.16"

♦141

4.36

(24) *■

—2„—2— '..

GREAT

LTD.—Month

Meats

other

Nov.;

$2,225,748

1.84

*145

141

——.2-

FINANCING

-39.6

$2.03
-

1.90

139

—_

ISSUES

2*2.23

41.2
1

OF.

2»;—T_T^.2_2——

BANK

ESTATE

Savings

40.5.

■-

2—2—^—.—^»_"r—2^—

CAPITAL

AREAS

116.3

.Dec. 24

;

(10)

Nov.:'

YIELD

incl;

2.24
1.92

2_!——
:_22_1_222—■

AVERAGE

STOCKS—Month

(199) 22

MIDLAND

REAL

products
foods—

(not

:2_

100—Month

—

(125)

(15)

Average

-'-72.86

RESERVE

FEDERAL

(25)

insurance

NEW

Processed

commodities

Banks

597,720

1,018,030
13,036,520

LABOR —- (1947-49=100):
Commodity Group—

commodities

THE

COMMON

Industrials
Railroads

~~Dec!
—I—Dec!

:_2

<•

88.99

*$2.09

$2.10

2—

—-,2—-— "

WEIGHTED

Utilities

39.5

'39.1

adjusted ' __2

Seasonally

100

39.2

74,29

*39.8

Unadjusted
MOODY'S

74.30

"88.96 r

88.70

39.6

goods

ERNORS

$82.22

•$82,56

$82.32

38.7

SYSTEM—1947-40

Dec

21'
< ^'
' ■
(

Nondurable, goods..—.T_—_2__.

—

•

INDUSTRIAL PRODUCTION—BOARD OF GOV"•

"182,280

ON THE N. Y. STOCK

sales

manufacturing'

All

Durable

l,05i;3G6
$51,788,355

BOUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total round-lot sales—
Short sales

9,162,000
'458.1

422.C

goods 7-—-'.——2—-2-1——v—J.

goods
earnings—

Hourly
•

6,721

1,025,430

.Dec.

48,839,000

8,441,000

10.475,000
'419.0

'■
"
_2_2_*__2—22-'-—2.2_

manufacturing

Nondurable

27,646 '

.Dec.
x

18.130,000

Durable

•

.Dec.

—

manufacturing

Hours—

1,438,457

$52,552,708

TOT££JJ?^ND"LOT 8TOCK SALES
AND

DEPT.

November:

earnings— '

.Pec.

sales

,21,695,000

—1
;—_—T
Durable goods
—2—2—i-2—r2ii-— *
Nondurable goods
1_:—222—_-22222— "

,Dec.

Round-lot purchases by dealers—
Number of shareS-u—

ESTIMATE—U.

LABOR—Month

Weekly

-■)

48,839,000

21,161,000
18,147,000

FACTORY EARNINGS AND HOURS—WEEKLY

711,503

18,147,000

■

2,200,940

Dec.

100,170

786.316

18,130,000

21,090,000

657,40?

.Dec.

1.147,035
16480,356 »
156,174
933,251

(DEPT. OF COMMERCE);

_Dec.

3,321', 865

1,079,895

9,651,766

•-

active as.of Nov. 2_2_22u—_.

spindle hours

568,415

All

of shares—Total sales

Revised figure.

Nov.

Cotton, spindles

Active

2,558,302

726,669

659,651

1,284,906

10,802,463
107,298
'

_•

Spinning spindles active

Dec.

Short 6ales

SS'

2 ' 019,816

100.540

Round-lot sales by dealers—

—1-

of October!--—-2_

Linters—Consumed month

46.300

12,815,385

(

611,949

.—Dec.

—

Customers' other sales
Dollar value

All

October—-—

132,150

2,512,005'

$568,000

9,200,605

consuming establishment as of Nov. 2—
I11 public storage as of Nov. 2-2—„-_2222—— \

345.180

2,0*8,302

$516,000

COM-

COMMISSION:

Customers' short sales

Farm

DEPT.

160,510

Dec.

Odd-lot purchases by dealers (customers'
sales)
Number of orders—Customers' total sales

All

—

575,605

(customers' purchases)---!

value

Other

LINTJBRS

month

bales)—2—

(running

13
AND

Consumed

329,150
•

Dec.

527,102

;

....

$314,400

(DEPT. OF COMMERCE)—

130,300

Dec.

—

$738,200,;

$560,000

(000's omitted)—

Dec.

—

——,

8.749

YORK—'

NEW

MERCE —BUNNING BVLES:

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK

Other

._Dcc.

purchases

Number

$325,000

505,535

Total sales

Dollar

Nov.

COTTON

424,230

470,810

615,952

•

DEPT.

.Dec.
.

—

11,231

9,270

.Dec.

—

$39,886,000

OUSTANDING—FED-'

BANK

RESERVE

COTTON SPINNING

round-lot transactions for account of members—

EXCHANGE

.Dec.

—

sales

PAPER

COTTON GINNING

1,730,510

326,990

Short sales

Other

102,800

the floor—

sales

Total

ERAL

.1,720,690
356,480
1,374,030

223.190

CORPORATIONS—U.

1,854,000

3,195,000

$47,428,000-

I■

306,560

——1

COMMERCE—Month of Nov. (000's omitted)'

110.16

1,396,620 "

1,863,850

Dec.

purchases

Short sale#

Other

1,452,480

transactions initiated

....

—

Total sales

Other

1 147,680

1 497,380

Dec.

purchases
sales

the floor—

Short sales u
Other

304 800

--..Dec.

transactions initiated

Total

Dec.-

...

sales

Other

Total sales

1,373,960
376,150
1,020,470

1,914,260
453,550
1,510,300

imiiimmmimimmnim
■
: ' >>,

////

:i(

Dec,

(NEW) IN THE.
BRADSTREET,.

November

CASH DIVIDENDS—PUBLICLY REPORTED BY

Dec.

purchases

$52,899,000

340,551

I ! !Hit''I'll,/ lillil I.ill:'< /i'i"I

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks in which registered—
Total

109.26

108.22

108.26

MEM¬

11,099,000

2^——

STATES—DUN

COMMERCIAL

.Dec. 27

100

TRANSACTIONS

UNITED

280,141

276,494

OIL, PAINT AND DRUG REPORTER PRICE IND£X—
1949

295,993

.—.—Dec. 21

7,994,000

—"

liabilities-!;—_2-

BUSINESS INCORPORATIONS

207,805

Dec. 21

of activity.
Unfilled orders (tons) at end of period

Percentage

ROUND-LOT

250.778

288,876

290,705

.Dec. 21

—

254,413

206.345

.Dec. 21

-li,476;000

13,420,000
r 2,611,000

INC.—Month

16,947,000

———2——.—;

service

'3,743,000

»7;691.000

2—2--<—_2—

liabilities

Total

3.96

4.00

Dec. 31

INDEX

(tong)...

(tons)

4.46

5,912,000
12,895,000

4.13
T

Dec. 31

NATIONAL PAPERBOARD ASSOCIATION:
Orders received

Commercial

$11,714,000

$11,601,000

$18,061,000

_22-__2_

liabilities

999

1.122;

;

hahijities

Construction

1,173'

4.02

4.66

Railroad Group

;

—2—2—2-2—

liabilities

Retail

3.89
*

22—2

liabilities——1-22—22_—'

Manufacturers'
Wholesale

3.82

"number

'*•

4.05

4.02
4.28

•

4.27

3.52

4.47
.

Total

326,899

-438.671/

$2,026,413 v 32.425,386

Number 5704

187

Volume

The Commercial and Financial Chronicle

(39)

anticipation of greater reon
rental investments; and
core of demand for con-

also declined in 1957, will return
to approximately the 1956 level,
Farm construction expenditures

venient, central-city locations

will remain unchanged from the
last few years, in line with the
relative stability of farm income,
The strongest single sector of

ters;
turns
a

The year

1958 should prove to be second highest in physical
construction volume, according to the, U. S. Labor Department,

from

Outlays for public housing next
year will probably climb to a rec-

continues to limit housing activity,
easing in the mortgage market for 1958 is assumed.

some

funds

may

The

latest
Federal
survey - of 'but at a somewhat
construction in the continent than ih 1957. '

fastest

the

growing adult
segments of the population—both
young
couples without children
and the elderly.

despite expected decline in industrial buildings. Non-farm
residential building is seen increasing 6% over 1957 and,
while mortgage

large

ord

slower

$850

million,

chiefly

in place the sharply rising

pace

put

num-

nonresidential

tion in 1957

private

construc-

public utilities,

was

Prospects are that next
group will show a 6%

in spending

this
advance

year

about half the 1957

lays

for water works construc¬
tion continues the downtrend be¬
gun in 1957.
The 9% expected
increase for administrative and

service

building expenditures

maintains the advance in outlays
for this type of construction dur¬

ing the past decade, reflecting the
complexity
and
the
growth of State and local admin¬
istrations to meet the requirements of expanding populations.
increased

The expected decline of 14%
ber of armed services (Capehart) rate of mcrease. The tight money
in expenditures for military fa¬
by-the ':
Supplv of mortgage funds will ^nits that have been getting under market and moderating pressures
U. S. Department of Labpr, Nov:
continue to be a chief limiting : way
this'^yeaiy Public housing for increased output have re- cilities, to $1.1 billion, continues
the decline begun this year, and
15, indicates that prospects for a factor in housing activity next' starts will about, double in 1957 suited in some stretching out of
greater advance for 1958"over; 1957 :^ear. Some easing in the mort-Vas jcompared with last year, and existing
long-range expansion reflects both reduced appropria¬
exist than that for 1957 over*1956.' gage market is assumed for 1958.' then are expected to level off in
programs. Nevertheless, an aggre- tions and completion of many sup¬
new

.•

tal United States, released

teif7onSS-"h^ewr-1u

ine
ThevudurH juu
siuay 11 full

■■Outlays

for

text

jouows.*_

construction

new

lit ?958 some decline in units, reflect- for the $6 billion will be reached
at about 50,000 armed serv- gate of first time in 1958. This

part because of

vines

mortgaees

tho

also

and

used

tvnes

ices housing starts, offset by

because

rise

will be one-fifth greater than 1956

of $47.2

assumes,'Uoans.,;-:,
J2 bdlion record should be at:,i Major fix-up work (additions tained in 1958 for gas facilities

The outlook

_1?JL
wnni J"

ft1®4

total of about
1,100,000 new non-farmdwelling
units Wiu be started in 1958, about

S ".SitS*

development

of Reclamation programs

Bureau

andalterations) to existing prithJ3
vate> housing has been rising
S
Sf
I^000 of which will be prii; sharply-Since 1955. This trend is
of v ark put in- rplace^(exr,:.va^1x,:
This
w
iow

unie;

and

investhient: in home loans should in other public housing programs, expenditures. .The chief areas of
record.i^.eA> f
.
.
f£ .^ The
chief; deterrent in armed spending will
be for electric programs are likely to continue
billiondemand for such nuruoses services housing will be the dearth power and gas facilities, for which at about the recbrd 1957 rate, as
'as industrial plant and equipment
of credit for lowiihterest mortgage the increase will be over 10%. A gains in Corps of Engineers and

—

expenditure

1956.

Conservation

^reio=?e<:teti0 above$t?'6 bllllo5
t?tal the
1958
5;0
in

port facilities begun during the
two-year expansion in 1955 and

construction, about double the
g>e"d,a? rata of ihre® years ago.
Both «?e railroadexpected to deand telephone
expenditures are

offset

are

activity

drop in

the St. Lawrence Seaway, on
which peak construction is now

past. Although few large Corps
of Engineers projects have been

changes

exceeded only,:]
an^irirr
billion expansion
SySion*
.

which

«i^(j ^botit1 5&0OO

onhiglnva^work

and public) and

altogether

account

for

'-'*;;

expected to

are

$2.1 .billion

total

little. Under.- current

stringent

credit

in:^s than: 1,000,000 private; units; terms and limited housing avail-

—,

probable

authorized

for

start

1958,

o£% the

Public

Residential

units

bKiiitvi

qHH

homes. ! rather; than

Building;'';

strong advance in total

fflmiliPQ fpnri

manv

buy new
hous^%^°; Jr^V$?angmg re(*uire~

new

residential, building (private arid*
publie) lis anticipated for next!i^

by a^°f^ 10
However,
in ***?. casf
??u

number of sizable programs begun

dollar level will still be

with

purpose

1958 at thebillion-

spending in

than

one-third above the expenditures
of four years ago.

Expenditures lor almost all
major types of construction
probably rise moderately^.or

other

will

housing

private

activity,'.total: ,^$35; million),' and
,

.risinS

$1.4,billing: to $34,7 billion, com-;;
Pa*t* n*w-T?'-,a I
P?.n ntTeafe
to $14.9 billion for
public projects,

The

■'*

-expected

construction
the

volume

1958

that

assumption

in the

any

based

have; been,- largely, fulfilled, and
tml
a-P

dwelling units expected to get iraci: awards tor new Piarns oeunder way next year represent^ a gan tapering off in mid-1957. This
larger increase from 1957 in the
II exPected to continue in
number
of
apartments
to
be 1958. However, spending in this

change

economic pace next year—

for construe-

_i_ 1 •

•

by national output,-likely that apartment units will
income, and employment — will constitute almost a fifth of total
not be great enough to exert a
housing starts in 1958—the largest
significant push up or down on proportion
since " 1949.
when
the

total

new

construction

apartment house construction

ac-

tivity.
It was assumed also that
international develooments would
not

affect

tures

tion in 1958 will result from work
on

the

continental

United

assisted

was

credit conditions

easy

4".*

id flttr

-t •* wi rv

A A

warehouses, and hospitals, will
probably be maintained at or neai
the 1957 values. In the case of
office buildings and warehouses,
the general high volume of busi-

and- by
special
financing • aids
under the former Section 608 pro-

States.

the

rado

the relatively

activity and

ness

1956, 1957, and Outlook for 1958*

Tvne of Construction—

TOTAL

NEW

1956

1957t

$47,200

$49,600

PRIVATE CONSTRUCTION.
Residential
New

buildings

dwelling

Add1 Hons

33,242

33.300

16,530

3,695

3,915

4,250

447

490

9,155

3,084

3,170

Commercial

3,585

3,775

ulation

+ 10

River Storage project),

—

buildings

Stores,
Other

1,684

1,870

2,025

+ 11

garages

.1,947

1,715

1,750

—12

buildings_^___

nonresidential

Religious

2,102

2,400

2,500

870

525

540

warehouses

and

restaurants,

and

DIVIDEND NOTICES

DIVIDEND NOTICE

COMMON STOCK

DIVIDEND NO.

December
clared

of 1916 and for which match-

per share
the Company's com¬
capital stock. This
dividend will be paid by
check on January 15,

■

Hospital
Social

+ 14

8
2

4
0

+ 13

institutional

and

536
328

505

590

+ 54

300

195

L_ii

200

1,560

construction.

1,600

200

1,600,

Public

utilities

Railroad

5,825

5,113
427

450

+14

6, J 50
400

1,000

Telephone and

telegraph

1,066

2.350

+ 14

+ 12

2,000

+ 29

400

225

+ 58

+ 18

12,818

13,900

14,900

292

505

850

+ 73

4,072

4,470

4,710

+ 10

453

455

450

2,549

2,830

3,000

+ 11

298

CONSTRUCTION

PUBLIC

buildings

Nonresidential

330

340

+ 11

f +

buildings

Industrial
Educational

Hospital and institutional
Administrative

Other

Military

and

—_

service

►

430

362

—__

Highways
Sewer and

water systems

470

410

425

1.100

4,825

5,500

1,345

1,270

+ 14

+ 12

785

750

560

520

—

395

400

Conservation

826

965

950

+ 17

All

other

•

and

development

104

public

*JoiQt: estimates

the

Department

Labor and

9
6

384

—

120

+ 15

1 THINK I BELONG IN THE

SECURITIES FIELD
Aire S3, college trained in science.

{Change of less than one-half of

agement
with
net

sales

security
worth

security

field.

analysis
$200,004.

Desire to

the
De¬

CHRISTENSEN,
Treasurer

Francisco, Calif.

PGE
lllfllll

in the post-World

age

low build-

iSMSCOKSOMATION

jng rate of the 1930's and 1940's,
Construction of both sewer and
water works is expected to dechne

year

response,

TENNESSEE
CORPORATION

extent, to the drop in residential
construction since 1955.

November 19,1957

some

facilities,
likely
Represents the first reversal of
a steady upward trend since 1945,
jn

the

case

CASH DIVIDEND

sewer

drop which seems

the

whereas

decline in out-

of fiftyflve

dividend

share was
payable December
1957, to stockholders of

(55 i) cents

per

declared

annually

Class

FIEST

than

immediate
T

Chronicle,

Commercial

Part

and

Years

enter

Institutional
with

essential.

Financial

Place,

New

York

Street
.

well-

institutional

known

buyers in U. S. and Canada.
Write

rather

are

Wall

member firms

fjff

Man.

0
0
il

Box

mercial

Chronicle,
N.

Y. 7,

and

N. Y.

1212

December 3, 1957.
DIVIDEND

EXTRA CASH

Syndicate

Experienced

jv/A

security

potential

earnings

AVAILABLE

annually plus

$15,000

$35,000

profits.

ness

have the In¬

average

Earnings
Zero

the Department of Commerce.

helieve

Man¬

coupled
has produced a

organization

telligence and other attributes necessary-.

tLast'2"mouths estimated.

K. C.
San

19,

Box

120

business

stock¬
of

record at the close of busi'

record

cember 27, 1957.

—14

701

+
—

574

Water

+ 68

—

Public service enterprises

Sewer

+ 19

450

1,275

buildings

facilities

1.395

4,470

nonresidential

school

190

375

common

large
of children

rjse jn the population

+ 11

400

•

——

private

Residential

1,800

1,400

utilities-^-—

public

other

—

2,100

1,845

—

Gas

All

1,075

120

Electric light and power_.
Other

-■

declining number of such

maintain the present annual outlays for this group.
Private
school
building, which

—11

ment of suburban areas, the

\yar u period, and the

sales will help

•

projects were begun. There are, however,
prospects
that continued
suburban growth and high retail

+ 17

275

recreational

and

—

stabilize

sharp drop this year. Comof many new large regional and community shopping
centers started in previous years
dominated activity in 1957, when
a

Miscellaneous
Farm

768
'r

Educational

1958,

holders

the wake of substantial develop-

pletion

cash dividend for

upon

de¬

mon

£g more £jjan three times the level
Jn 194g
reflecting the relentless
.

1957,

of 60 cents

year

localiOutlays for roads financed
sojeiy
the states, including

18,

the fourth quarter of the

coun£y FOads by individual

1*8

The Board of Directors

jng generally is on a 50-50 basis),
ancj construction of urban and

ing

+
•

stim—

area.

will

garages

Olfice

and

into the Sacramento River.

Other high-

$850 million in 1958.

slightly above 1957 levels, follow-

nnnsi^Prflhlfl

this

Outlays. for stores, restaurants,
and

+, 6

Federal-aid funds

nrnvirlpH

Vioirri

—10

9,150
2,875

3,631

—

525

8 817

(nonfarm)

Industrial -

50% in-

jnore than

in 1957.

crease

1957-58

12,800

alterations.

buildings

17.575

12,125

Nonbousfckeeping
Nonresidential

1956-57

34,700

17,632
13,490

(nonfarm)

units

and

Percent Change

1S58

$46,060

CONSTRUCTION.,.

the

despite

•—Value (in millions)—
-

—

diversion of Trinity River waters

The

new

the Glen Canyon dam
(key structure in the Upper Colo¬

low vacancies, especially in buildroa(js wju continue the downgram of the National Housing Act.
ings with more desirable features
which began in
1957, as
estimates reflect expectations of The
rising
rate
of
rental-tyne and convenient locations, promise gtate funds are increasingly used
an
adequate sunply of materials homebuilding at present may be another year of expansion to bring
£or
in£ers^ate system,
and
labor, and the assumption attributed to a number of influ- annual outlays above the $2 bilpublic educational outlays in
that construction costs will conences,
including expanding pro- lion mark for the first time. Hos- jggg are eXpected to reach the
tinue to trend moderately upward, grams for rebuilding urban cen- pital construction will continue to ^
billion mark
accounting for
show substantial growth in 1958,
one.fifth 0f an 'public expendiNew Construction Put iii Place in Continental United States
to almost the $600 million mark,
^ures £or new construction. This
construction

of two

early stages

projects

sector will still be about one-fiitn way programs expected to show
greater than in 1955^ In general, expenditure gains in 1958 are the
expenditures for other nonresi- |jasjc
continuing Federal-aid
dential building groups, with the jjjghway program (which origi¬
e x c ept 10 n of office buildings
nated with the Federal-Aid Road

measured

year.
On the
increasing expendi¬
by the Bureau of Reclama¬

expenditures (90% Federal and
state) will expand from
about $250 million this year, to

single-family houses,
continuing the decided uptrend in
multifamily residential building
which began early this year. It is

hand,

by 14%, to $5.5 billion, and that
'

started than

new

levels

other

(8%;

year

previous years—some multi¬
projects, and others for
flood control or navigation alone
—will be reaching peak construc¬
tion

Public Construction

Almost all of the expected $1
;sPrtVate.^nonresidential building
from $17.0 billion to construction for the first time m^biuion rise in public construction
$13.4 billion). This represents an six years will .not show an in- to ^14 9 billion will come from
remain at about the. 1957 level,
expected 6%, $675 million in- creaserin; oqt^ys;<, This is pri- state and locally owned projects,
The only notable declines will, be
crease
in- new private nonfarm marily^due to an expected decline and gQ^ 0£
be accounted
for private industrial plants. and;*
dwelling units to be put in place^.MndiMt*ial construction of about for by the new interstate highmi Utajry. facilities.- »•.
,r
••
ajid,". in addition, rapidly rising ■ 9%.',,Long-range expansion pro- way program. Prospects are that
-Reflecting the anticipated re- expenditures
for
additions
and grams foxy;the,; construction and total outlays for public highways,
versal of the-1956-57 down-trend
alterations to existing housing (up modernization
of many plants greets and roads will rise sharply,

gain,

Com¬

extra

dividend

twenty'five (25 6) cents per
share was declared payable
January 10, 1958, to stock¬
holders of record at the close
of business
December 3,
1957.

■

;

Financial

Park

Place,

John G. Green burgh
61

Treasurer.

Broadway

New York 6.

N. Y.

The Commercial and Financial Chronicle

(40)

Thursday^ January 2, 1958

...

BUSINESS BUZZ

Business

♦

•

'flkV**

Behind-the-Scene Interpretation*
from the Nation'*

Capital

Broadbottom
and

N* /

WASHINGTON,

though the competition is
to be keen,

that

Nonetheless, there are members

the„

Pentagon, which spends more •
tax dollars than any agency in;

doors and light shine on more of ;
the actions.
The Army, Navy T
and Air Force have been spend- J

the world, open more

ing hundreds of millions of do Jla is

Republican

that have

influence ' with

business.

! V

;

buying
Probably

goods

continue to do business behind-.
closed

doors.
up

mistakes

easier

through

closed

door

under

orders of Congress they.

policy.

However,

•

More Anti-Trust Action

should. be

this program.

>•;*•';*

ference

''I'm afraid, Figbar, tbaf s not

quite what I meant
about being forthright with our customers V*

and

circles

is speculation in legal
the Capital that the

into
automobile prices, and natural
gas sales, among othirs.
'

The sharp

lse in the numbei*

Defense

Washington. Some Congressmen
and Federal officials are appre¬

There

will

good health in many industries.
However, some think the whole
trouble grows out of "direct and
indirect
laws by Congress of

There

workers

are

year.

this

were

collar

expected
ditional

insured by the

Insured banks consisted

1958

that
w

In
or

5% greater than 1957. They

es¬

timate that the $2.4 billion in¬
crease will be mostly
in resi¬
dential

building,

public

and

private, and highway construc¬
tion. \
Expenditures for other
types of business will remain
about the levels

1957.

anti-merger law,:which would
flatly prohibit mergers at! all
levels of industry and trade ex-

234 mutual savings banks which

together held 96% of all bank
.-deposits.
; " t
Of the 739 banks not insured

cept those authorized by a Fed¬
eral commission or board.
A

question
would

the

involved

commission

by the FDIC

such

hand

mergers

that otherwise would
be forced to cease operating.
The question of a Federal anti¬
merger law will come up in
the

open

new

not' it

stage

Congress.

Whether

which

Total

State

assets

all

growth

ex¬

pected in hospital construction

amounting
$600,000,000.

estimated

Federal aid funds

amounted

construction will

occur on

the 41,000-mile multi-laned

di¬

vided interstate system.

the

$244

previous June

billion
30,

but

Productive

Philadelphia-office, 123

South Broad Street.

sociated

with

the

Time

Public

held

}

Standby Controls Unlikely
controls

over

Fidelity-Phila¬
Vice

President

Deposits

of .all

$218 billion

prices,

banks

N. Y.

and Treasurer of the bank

31,

1957!

Dec.

nual

1956.

are some

discussions of such restraints in

high places. At this time enact¬
appears

Demand deposits declined

3%,

while

greater.

time

deposits

were

remote, but the

increases

picture Could change.

All states showed
time

deposits

business and Individuals. Eight-

The

Eisenhower

administra-!

een

states

«^iion
:

is driVrecoVti

posed to controls

pemg

op-'

the ground

•

greater

than

registered

gains

10%, .while ;the

increases exceeded 20% in Flor-

(paper),/$25, cents,
First

Decade of

Edition—Cunningham &
Madison Ave¬

New York'16, N; Yr (PaPer)»
Wonder of Water—Picture booklet

CHICAGO, 111. —; J
Kaczanowski

and

o a n n a

regarding
of

Priscilla Perry

have become associated with Lor¬

water

proper

management

Soil

Conservation

—

Society of America, 838 Fifth
Avenue, Des Moines 14, Iowa
(paper), 20 cents (lower prices
in

quantity)..

raine L. Blair, Inc., 30 North La
Salle Street.

♦

TRADING MARKETS

'jI'E.S

A. S.

Bofany Mills
Campbell Co. Com,
Fashion Park

Indian H^ad Mills

United States Envelope

Morgan Engineering

Carl Marks

National Co«

no Tnc

Flagg Utica

FOREIGN SECURITIES SPECIALISTS

! 20 BROAD STREET
TEL: HANOVER 2-0050

;•

NEW YORK 5, N. Y.
;

Riverside Cement

LERHER & CO.

TELETYPE NY 1-872
.

—

Affairs

nue,

June 6, 1957, an

sight. However, there

Guide for

Walsh. Inc.v^ 260

totaled

increase of 0.7% from June 30,

Television! i948.-19A?-~lQth. An¬

rent and wages are not now in

—

Beatrice;, Landeck

Videotown—The

beginning of 1957.

the

Music
-r-

retired

years,

ap¬

En¬

Nuclear

Committee, 22
East 38th Street, New York 16,

as¬

'
,

for

Parents

;Mr. LeFevre,. who had been

Report on Nuclear Power
and Italy's Energy Position—
National Planning Association,
1606 New Hampshire Avenue,
N.
W., Washington 9, D. C.
(paper), $1.25.

G. Le Fevre has become associated
with their

Uses

—

ergy:

PHILADELPHIA, Pa. —Mont¬
gomery, Scott & Co., members of
leading stock and commodity ex¬
changes, announce that Kenneth

(Special to The Finiksciai Chroxicu.)

increase of 2% over

Montgomery, Scott

Two With L. L. Blair

Most of the increase in high¬

(Published in
English and Spanish). —Joseph
Mayer,
Casilla
Correo
1561,
Buenos Aires, Argentina.

K. G. LeFevre Joins

A decline

way

New York 16, N. - Y..
(cloth). ^20:00:
:
■
'*
Mayer's Grand Guide of Industries,
t Commerce
and r Exporters i in
Latin1 America

will result for private industrial

plants and military installations.

eh t, 125 East 38th

will provide considerable stim¬

ulation in this field.

American : Institute

Street,-

preciably below the $252 billion
*

ment

substantial

•

—

Mah'a ^e hi

delphia Trust Co. for the past 45

•'

1956

banks

June 6,

acceleration of

mergers.

Federal

members

are

insurance systems.

gets beyond the talking
depends on whether or

not there

banks, 292

savings banks, and 56
were nondeposit trust company
ies.
Many' of the non-insured
banks have not applied for Fed¬
eral deposit insurance, particu¬
larly -mutual
savings
banks

have the effect of keeping some

plants

June 6; 1957,

mutual

hoard.

other

391 were commercial

constitutionality

of 13,211 commercial banks and

•

Manual of Excellent Managements

[This column is intended to re¬
flect the "behind the scene" inter¬

pre¬

billion

$49.6

(cloth), $3.

248,!PHnceton, N;

; Robert Teviot Livingston and
Stanley. H.. Milberg — Columbia
Uhiversity ; Press,;. 2960 Broadv
way/New-York 27, N. Y.r~$8.50.

ad¬

will

construction

new

final determination.

Industrial

Human Relations in Industrial Re¬
search Management — Edited by

the Labor

economists

ill total

Congress will make the

project.

pretation from the nation's Capital

be needed in the labor force for

10-year period,
Department says.

per

and may or may not coincide with
the "Chronicle's" own views.]
:

people

the

indemnity to $500 million

than

continue.

10,000,000

to a point. The Bureau of the
Budget
would
limit
Federal

and.Frederick Harbison
Relations Section,
Princeton University, P. O. Box

public

for dam¬

ages. The government will un¬
dertake to protect producers up
,

Brown

—

The trend

country

blue collar workers!

dict

were

tion, 13,445
FDIG.

Once again, there. are discus¬
sions
of
a
projected Federal

white

sue

Con¬

High Talent Manpower for Sci¬
ence and Industry—J. Douglas

re¬

supplemental appropriation
quests to Congress.

Should

the

occur,

would be able to

substantially
greater
(approximate¬

ly $39.5 billion) recommended
by President Eisenhower in the
new
budget.
Additional sums
for defense will be sought in

toward white collar workers/is

June 30, Of the total in opera¬

former years.

the next
1, probably

than the amount

14,184 banks op¬
erating in the United States, pn
June 6, 1957, according to the
recent Federal Deposit Insur¬
ance
Corporation. This was; a
decline of 63 from the previqus

hensive that the many consoli¬
dations mean a lack of basic

explosion

spending

fiscal year on July

is predicted that

Nation's Bank Structure

producers.

weapon

University of
by Harold -M.

Somers—Industrial Liaison Of¬

favors insurance for hazardous-

South Carolina.

Government

of mergers is causing concern in

the

>Ian-

fice, The University .of Buffalo,
Buffalo 14, N. Y., (paper), $2,50.

The Eisenhower administration

Oklahoma

Dakota,

Short Takes

Congress
will approve a three-year ex¬
tension of the trade laws, plus
giving the President authority
to reduce tariffs up to 157c.

inquire

will

Department

5% each

the tariff by

North

25 *
».

and Business

Buffalo—Edited

There

Taxes

-agement—Proceedings of

ida,

.cenits,;^vV: #'v£vv:

Estate

Department of Justice
Seek Tariff Law: Extension
proposes to keep up a steady ;
; President Eisenhower is seek¬
program of anti-trust 'activity-*;
in 1958. More cases are expected
ing a five-yeay extension of the
to be filed against producers of
/ reciprocal trade law with power
consumer*
-to, cut tariff as much ;as onegoods,
and
more
fourth. He will probably have
against distribution systems and
to settle for less. He would cut
more against price maintenance.

Princeton,'"N.1/; J.' c(paper),

com¬

The

beat

pletely stopped now. Nonethe¬
less, President Eisenhower wjll
get most of what he asks for

reluctantly writing new regillations to carry out the order/

will

House

think' it

bers

are
'

{tiye Study; — H.%H. \ Liesner
I • InternaticHiai ^Finance; ^Section,
DepartihentCof !*Ecbbomics and
■f: ,;S^olpi^,-Frihcetdir University,
..

ing-about the same amount as
Congress passed for the current
fiscal
year.
The
executive
branch of the government is ad¬
vocating from $2.5 billion to $3
billion a year, for foreign mili¬
tary
assistance
indefinitely.
Congress does not like the idea
of placing
foreign aid on a
permanent; bbsjis., Many mem¬

and
services.
many Pen-.' tagon hlgherups would like to '

cover

Western' Germany: ;A Gompara-

;

the drums for foreign aid total¬

demanding

White

The

that
the military procurement people 1
call for competitive bids ,■ pre-;
JUminary

Import Dependence of Britain and

More Foreign Aid

dwindling list

Avenue; - New York 16,
(paper), 25 cents.

N. Y.

"emergency." Meantime, some
longtime observers believe there '/
is little likelihood of Federal
controls being enacted, unless
runaway Inflation threatens to
engulf the country.:

result'

suppliers.
Congress

Fourth
*

to bid. on Uncle.

there has been
of

;

negotiate. Y Therefore; they - hear of these business! *

Sam's

Incorporated, 457 Nassau Street,
Princeton, N. J. (paper), $3.00.

Dangers in the Kitchen—Ameri¬
can
Visuals
Corporation, 460

never

opportunities

Documents,
Printing Of-

—Mabel Walker-r-Tax Institute
.

•V f.

Committee, favors
sweeping price control pro¬
gram for the' duration of the

•

tfye f

Government

; fice, Washington 25, D. C.-r-30c.
Business - Eriteri>r|se and the/ City

and Currency

Army, Navy and Air Force ate.
not selected by the Pentagon
to

and

member of the Senate Banking

and most of it has been

negotiations behind closed doors.
Under this method, companies

Indiana,

U. S.

Capehart;

Homer 'E.

Senator

Trends:

Recent

Superintendent

-//;

;

and

Hearings before the Subcommit¬
tee on Economic Stabilization of
the Joint Economic Committee

standby controls
passed without delay. Secre¬

ting out of balance.

month in" the year,_
through,

every

Automation

tary of State John Foster Dulles
says he will use his influence
in an effort to get Congress to ;
pass price controls if the Fed- ;
era! budget shows signs of get- ;

contracts.

let the

economy

ties advocating

ing to be given an opportunity;
1958 to bid on government

Congress is insisting that

Congress in both major par¬

firms are go¬

best.

Al-

going

—

free

Bubbledome

Investo^ent Securities

18 Post Offics Sfusro,Boston 9, Mass.
.Telephone ;
HUbbarJ Z-1990

'Teletype

BS69

Full text of Commercial and Financial Chronicle : January 2, 1958, Vol. 187, No. 5704

FRASER