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• i * *+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 tu EDITORIAL i The Current Economic And Political Scene See It The President is now pondering," prayerfully without doubt, what he gress and the. American he must deliver in the near future. He is Russian tortoise vance, in the particularly matter of scientific applied to as deficit ad¬ the war losing steam, and questions in many to be as quarters bright as whether to the future good a observers that we 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 > more to spend. money want more pary • rolling U. S. riod, there Work¬ are signs that suggest are ? t these benefits, long as year ago, and in some cases, two years ago, or even longer. The 1955 stable dollar. the on basis of omy, of life -are, a Marriner 5. Eccles peak divide, is the in surpassed Chemical on before the telephone: American 22 page Institute automobile £. P. Schmidt for on page 24 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 34 BROADWAY, NEW YORK from offices coast to 5 Chase Manhattan BANK coast CANADIAN BONDS & STOCKS Exchange Canadian DIRECT ; j -".J"'»!. Expanding » . ' ' ' ' , \ . ^ Economy i v NY 1-2270 WIRES TO a 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 On Exchanges ' Exchange NEW YORK 4, N. Y. h DEPARTMENT Maintained Commission Orders Executed STREET 120 Banks and Brokers TdWi 25 BROAD COMPANY Markets Dealers, gout/uc&t u C2 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 To the Bonds and Notes EXCHANGES • Net i Housing Agency THE THE FIRST NATIONAL CITY BANK 30 BROAD ST., N.Y. AVAILABL^/ ARE NOW BANK and ; DRUG INDUSTRY" ON Burnham Public "INVESTING IN THE DEALERS • " COPIES OP OUR REPORT UNDERWRITERS BROKERS m ■v'r ' ';: ^ BOND DEPARTMENT Dr. —-i CORN EXCHANGE £$tllflW€6t not f 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 of sales since Continued of 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. of reached and will not be reached to ttfbe year ahead. Hous¬ goods and services which it is able tto produce and wot by sectors were been that <cfll the economy has to address and peaks a Unfortunately, the economic facts Securities f we in for something more than such minor adjustments. In a number of . industries Government, Stale and . readjustments have; in I ? securities DEALERS I edge now*" ~ While profits. And the increas¬ ing ranks of oldsters call for higher. pensions. However, everyone wants *An 20 the characterized the entire postwar pe¬ Business confident independent judgment in this matter, and probpage have wants added Of course, on 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 to form any Continued tractive and stable accomplish this is, always will be a subject of great political in possession of the to 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 As Everyone wants as yet given-no indication military strength of Russia general public is not facts and for full are - of 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¬ a 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 " 9 ? 1 NORTH LA SALLE ST.' 40 >• takes note of The the on : ■ to 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 is nob shared are majority in >1949 as other goals so long as To prevent price rise, or 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 as fears of the future is Director of Economic Research t- 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 be / ,:. 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 I - 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 i. Chairman of Boards Fiist Security Banking: Organization people in messages which - a ' 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. j aua. adm. • • • • •* library • 3d //<? . 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 ir New Yorit Hanseatic good (4) lent 1920„ WOrth 4-2300 BOSTON manage¬ no 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 ct 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- r 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 a revenues. "" ■ replacement, of !/'pfcgy-back" and Numerous stock dividends, the capital structure to in the simple Air Control Products, Inc. Bank of Virginia In First .4 '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 a con- Current million. $35 and million rhis assets Total a large replace$14 about is 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 to came can be rise share seen nor somewhat. in .earning power the foreseeable v- . 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 , 1 t v KELLER BROTHERS CJ ectisnttee *- * co., INC. BOSTON 9, MASS. Telephone Richmond 2-2530 Teletype BS-630 * ' V,'Z?* > convertible Comnanv nate^^ bond, at ,vere $102 very . oft>red 4 and quickly - went Up $12914 subordi- '■ near ... Re they < wrong debentures at 1955 its nounced / payments Shipping have Missisbeen uri- by / 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 a 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%. is Fruehauf9 From Capitol Products Corp. interest return Xo ^e|- what Interest in /"Fischer & Porter Inc. : or 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¬ ; to y 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 f $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, T; 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 at / York,'" Inc.// New 7u-,;o1 • /' The Fruehauf convertible 4s of 1976 are convertible into common .' / the next 12 years on an Write / '" write or /;/ Yamaichi // / f Securities Company , Lifetime Investment Program"- / ;* eign LD 33 f Tele. LY 62 effect in 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, i 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 t, m e n m&mm M. 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, In passen- vessels branch offices > the the 2,400 plus of holders. freight 14 of 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 n 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 i ,,, « n .wr ' //.-'•• '//-..•/• experience and large trading department assures you of maximum service and depend¬ kets, faster. 400 Thursday, January 2, 1958 . 73 <7 ,C lo^MiflS? Brokers, Dealers only Try and Financial Chronicle ; The Commercial / e lures* . SAVMGft N.Q.B. OVER-THE-COUNTER INDUSTRIAL STOCK INDEX 18-Year Performance 35 Industrial POLDER ON of 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 is 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 < v v 1 lowered Nov. 14 rediscount sequence to bank and reserves rate to be: ' r 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 of ' re- " \ f other periods ofin- 7 ' some to do pose I nte est; trend in ; s lows, • was am all,; I t Tax Aspects of most' pronounced. familiar • in • 1958—Roger Bobson—__10 Lagl. 3 , 14 NORTHWEST Prospects for Increased Use of Consumer Credit Abroad '—-Sidney E. Rolfe PRODUCTION 16 interest somewhat rates. rates lower In posite tended to 17 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. ' * ' - i f 37 ; J.F.Reilly&Co.,Inc. be than late '20's short-term rates the well Popovic—1— Members Salt Lake City Stock Exch. 1958____:___.:__j_l__.._._._ Spokane Stock Exchange 11 1 Bache & Co. Expects 9% Cut in Business Activity.. 15 Business But these two periods were both charseterized by extreme Outlook in Coming Year as 18 Labor Department's Analysis of J958 Construction Outlook 39 25 that assume Or 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 of rates we £ • DAvis 8-8786 See It (Editorial) Bank and Insurance paid 1_ Sc Cover Stocks 18 Business Man's Bookshelf first part of 1928—call loan gen- hardly ever were probably averaged 5% 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 a interest fleeted trend rates. in 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. B. U. • ; Boston • * TELETYPE NY 1-5 - Chlcafa • v Glens Falls Nashville Schenectady • Worcester S. DANA ' • " Weekly 17 „i— j OH RON I CLE ll ary COMPANY, Publishers U - j ; , 25, second-class as 1942, at office . . »- ' ^ > . . Offices: 111. 135 South ' Sabre-Pinon New Rates - Subscriptions In United fetates,' U. Possessions, Territories and Members Pan-American Dominion of - • $72.00 per La (Telephone STate Salle St. 2-0613). and per of Quotation year. Record . —- INCORPORATED 39 year. Other Publications Bank $40^00 V. FRANKEL & CO. S. Union, $65.00 per year.- in Canada, $68.00 per year, Countries, j j / - 3, at ' -' Every Thursday (general news and ad¬ vertising issue) and. every Monday (com¬ plete fitatistical Issue — market quotation •records, corporation news, bank clearings Estate and city newB, etc.), * Other Quinta Corp. matter Febru¬ the ;post Subscription Y; N. !! . . - Chicago Sulphur York, N. Y., under the Act of Mafch 8, 1879. ♦ I Thursday, January 2, 1958 ' Pan American Company j "~t-» Place, New* York 7, REctor 2-9570 to 9576 ^ United Western Minerals 4 Reentered ' Patent Office i 2 Copyright 1958 by j William B. Dana' Other ' Gulf Sulphur 40 Park : ■ * ■ .1 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. 25 ■ 25 TELEPHONE HAnover 2-4300 ' Corner COMMERCIAL and FINANCIAL .'r BROAD ~ 30 JJCLQ6 22. Twice \ \ 34 Washington and You The Angeles Dallas 25 Offerings The State of Trade and Banks WILLIAM 25 and ... The Security I Like PREFERRED STOCKS Members New York Stock 8 Registration,—.1 Security Los Chicago 23 .___ Salesman's Published have specialized in Philadelphia 23 Report,.,.,.. Public 5 .1,1 J v' definitely however, by 1933. C07VttTlU6CL For many years we ' Governments Our Reporter's Securities • * on Prospective , First National ference of Bank Reporter 40 Exchange PI., N. Y.| Teletype NY 1-1825 & 1-4844 | Direct Wires to \ 19 Observations—A. Wilfred May,, a 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 36 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. 38 Funds News About Banks and Bankers— . Singer, Bean & Mackie, inc. 8 Indications of Current Business Activity— i Mutual m to 16 From Washington Ahead of the News—Carlisle Bargeron and ^ear 8 Einzig; "Britain's Prospects in 1958" ; have : been. back decline. 5 Dealer-Broker Investment Recommendations rates haps levels in certain respects. But let's J^eto 40 Coming Events in the Investment Field the Teletype: SU 155 %mv ;ProSperoug by the Treasury to finance early '20's. But the facts are that during most of the -20's— specifically from 1922 through {he in ' 8 Regular Features , As We think of the peaks of rates Exchange PI., Salt Lake City 39 . safe to 1160 • Purchasing Agents Survey 1958 Business Outlook., . HEnderson 4-8504 Teletype: JCY Viewed by the Cleveland Trust Co 7 Exchange PI., Jersey City DIgby 4-4970 rose , we STATES WESTERN OIL FIELDS - - MINES NATURAL GAS " 12 Investments in Real Estate Mortgages-1 1958: Return to Reality—Milan D. a was 4-6551 RIMROCK TIDELANDS 11 "*! 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 .7 ___ 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 1 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 g Depreciation—Dqn Throop Smith__i___—___ Life Insurance on Secretary Mellon's record of rates. at their Bonds Inside the "Interim Period" and Building Industry —Walter E. Hoadley, Jr.,, . cash flows HAILE Business and Financial Forecast for sure,' are 99 • Opportunity in Government ■7—LeRoy F. Winterhaltey the bring obsoletes! 4 V • v if you successive long-term ally; reached their vinfthe yields We gener¬ modern is nancings^ at re ' < —where 3 Labor Leader to Propose a A Golden ment f u nd s primarily because during this prosperous period the Federal Government was steadily with paper. rates r 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- it <-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 s 3 _ Monthly. WHitehall the rate account of the madte 5 4041 • Wires to ; ' ' - fluctuations in of 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 a 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. — Related mented window and by Future car and models are certain to tiles plastic In stalment researching and producing fiber glass, which we'll a 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" a 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.; up glass exclusively and (You have no doubt a 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 at 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 on It , 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 to vi¬ trically. imple¬ sion Cobleigh Business Failures „ prospers U. Industry J 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 a , _ Index Price year. strike motor Trade Commodity Price-Index Food little less than a million The only cloud in a modernization sug¬ Scripture. is taken quotation from topical selection gest producer of glass. Carloadinjs ' than An 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 a 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 in rise But. the sion We 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 as a Corporation, Boston, consultant. a# General Partner Telephone Teletype Cable Address WOrth 4-3400 NY 1-2900 DelafieM years. and Research tW WALTER B. DELAF1ELD Crosby Corp.; Sidney General Partners. and 5 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 by which Cowles F ndation o u A. Wilfred May Economics at Yale Uni¬ sion versity, speaking on "A Post Mor- of' tem Some Recent Short Forecasts." He presented a sion of Economic 1956," tion. Review Forecasts for (It will be - medium Some 1955 of 'the for Cowles Research "in 1933.) I" in the find- in 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 , b and publishing firms in New York City; and the product ot and Gross actually > _ , ^ were error the -'arising « Mathematizing Future - This • in • a_ _ nullifying the efforts another that area, In' metrists. a of the from method for the successful determination - of stock pricing was claimed, they typically pointed mathematical the behave. Sp. were National efforts. The centered on measurements people actually do In this case "people" are their and location , „ Product. the inaccuracy in level, predicted consumption was change in substantially too to As , well as contribution a PLEASED TO ANNOUNCE THAT Mitchell & Security Traders Asso¬ Annual Convention proposes a to way ivAs a for as to of Company America annual, convention at the Americana Hotel. -BOSTON, Mass. — Jerome J. Forbes, Arthur M.t -Pivirotto, J Jr . Harold and A. Soloff fice Square. * - ; ■ lic's and } ■ . ANNO UNCE price of amount expect held to dividend ' G. TUE ♦. ' j.-,. ADMISSION -• OF be ALEXANDER C. TOMLLYSON ' :■ , : • . , AS A GENERAL PARTNER I - , ,. OF THE FIRM that receive—all to dividend EFFE GTIVE of . 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 on the by prevailing interest rate. Coefficients •. : AND ■ : '•/.'• ' , ■; and Pi's The eeonometrist thus quantita¬ tively determines . an a We 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 to average esoteric Thus, the omist, like HAVE THIS DAY IN BECOME .PA RTNERS OUR FIRM Smith, Barney & Co. Members New York Stock Exchange and other leading exchanges so , 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¬ a investment, isolates Hlgh Knowlton, Jr. : eco¬ assumed William E. Fay, Jr. j (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 - . is V" cal guide to buy or sell stocks." for American goods was not foreseen; on ties of Soviet scientists in this Anno Sputniki One in this area of financial prediction, yield. WE scheduled . . National Security Traders Asso¬ ciation Annual-Convention at bave supplied timely information regarding the attitude and activi- up ; 29-Oct. 3, 1958 Springs, Colo.) Unfortunately, the two thc market place. , Sept. way investors Quebec. egg- tjt economists v 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 of Russian econo- nm* $6 bill oi, a d the m an pfre contributing \ +l ^ c 10fn?h ?• ' to the arose 6: "P.S."— a into the - v at the Shamrotk Hotel, of fore¬ demonstrated here hi was author factor projection of ' , 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- , of (Philadelphia, Pa.) Winter Dinner / Stratford Hotel. - Prices human d T /.. (Chicago, III.) Traders Club 28, 1958 of excessive the pub'■ • *'" Be obfuscatiou regarding the ; practical significance of dividend Stocks yield, without accentuation by the " mid¬ Southern Investment Traders. Association S of 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 . , 11 ■ n ^ 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 to 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- _ a 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 in 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 in In 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 * to the rise of $30.5. actually " occurred, was of 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 o 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- a 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 of 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 T Under- outlays its of suited largely from the rapid rise in ^== of small. 5 (5) Principal Exchanges Co. o Commercial and Financial Chronicle The <5 (6) '' • ■ " . " ' * ' ■ : - The Unorthodox Policy for A labor Leader to Propose A Most RICHARD J. GRAY* By 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 by great so that no coun¬ will try risk «• starting This war. not to say is of shouldn't w e keep up ef¬ Richard Gray efforts in the of missile field and other aspects Increased de¬ spending more defense. military fense efforts mean — borrowing more money. short, this means more ipfla' ' /• ' ■ money In lion. will do little good to achieve military superiority if the It us ever-increasing inflation cost and eventually in result unemployment and widespread depression. a consider inflation and its us effects upon us, and then Inflation as 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 more 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 at 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 . am the past country and has been for several years. Perhaps this means GNP Product" will they call it, for 1957 as or -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% J ; eco¬ ! *From 49th and talk Construction AFL-CIO, Atlantic Trades Department, City. and money policy by this Administra¬ tion or any do not want a tight- other Administration. responsibilities Tf ders. until Up now, Shall and obtain wage increases mean more and to announce the election of wedo, tight, money, more "' — 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 ' r 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- 0 ... . ^ _ ;*.'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 more people? Or, has the time come for us to reassess our basic policy? I v 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 as . quarterly meeting to be held month the following pro¬ lar next and the association of Mc posal. iirc pleased to announce that Wage Moratorium * MR. RICHARD H. SCOTT our Trading Department » join of laration in a policy appointment of calling HARTY, JR. our representative in Denver, Colorado our MR. HERBERT have been F. WENDLER R. ABELOW admitted . associations other words, I propose wage any as _ general partners in our firm , we increases during 1958. sincerity nation ments and of of demonstrate purpose to 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 as 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 A v. 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¬ If 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 we • pleased —*■ sufficient money at* reasonable the basic trades, one .. ; get others envision J this I Three sole objec-" else in organ- •* to to stand j s^te and;local council.delegates ' •' - our been has labor me - ; 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 We j As 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 of 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 in in 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" more this $63 construction accounts pair work. Incidentally, of billion, new for $47 billion and ... . not is : ■-' - 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 • It ^ Rightly Urgent 1: up other and ... 1 consolidations that The economists also tell us airports hospitals, v 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': ^ ' v ment the people all y*plus eventual government wage v,. ; W^ng indu^^xonwted effort upon the Federal Govern¬ v be about $434 that ' - to 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- like time to time 4L/-.* number the higher prices for goods and serv¬ ices. It all in observer so as to knowledge of an , that represent. Look about and see what has been happening—hous¬ a participate to as first-hand obtain as from to 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 of advisors of the nation's econo- and providing full employ¬ building tradesmen. my , leaders terrifying effects of inflation, r .The really serious part of in¬ flation is that it creates a shortage of 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 to means such illustrations but de- the this me 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 in 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 to the dislike I 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 7 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 my In Government Bonds - ' * - . , . . «. . ' , s .. . - I «• think that we it ; is highly have may flect probable before us to " be, a golden opportunity benefits from our bond reap — benefits interest effect which have rates on has an immediate bond . • fer are such that their effect will, in my opinion, be building of bond profits - substantiate the moment feeling at least, during that, my * we 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 , of favorable to the for have quo¬ us 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 , • In any has analysis of the business on or 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 at -this moment witnessed a high very level belief time that business at 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. We uniform are pleased to announce that - . F. Kenneth Melis In 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 at excess level a . ;• 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 I 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 of $361.2 an annual January 2,1958 irr 1954, to $434.3 in the second quarter of 1957. The of 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 by Mr. Winterhalter Conference of 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 in uct goods "the was Gross result of We 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 J. pleased Edward Burns II in WE are higher. The Bank Prime^ Rate presently 41/2%, the highest in great many years, and the Gov¬ as jr. Vice Presidents ernment has been forced to refund UNLISTED TRADING DEPARTMENT G. c. Haas & Co. , MEMBERS 65 ESTABLISHED NEW YORK 1910- STOCK EXCHANGE BROADWAY, NEW YORK TELEPHONE BOWLING GREEN 9-7060 \ .. r • 6 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 on in revenue commercial F. Eberstadt & Co. Inc., Manager and Distributor of Chemical Fund, Inc. 65 BROADWAY December 31, 1957 NEW YORK 6, N. Y. page 20 / 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 to ; 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 ' '• .. i. , . ' I .. 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 of up-to-date com¬ It 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 an 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 in 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 & a 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. of "American Investor"—American Stock Exchange, 86 Trinity nation, out gone search in his recent life. In nation. Over-the-Counter Securities New York or have not are many Senators days there my query: would in Congress¬ Washington but those that approached, officials of Trinity Place, New York 6, N. Y. sounds the Security Dealers Association and 74 a the That There these Members: as 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 do to this matter on it has had H correspondent your are, together ex^dtive I with to us to be a the year can finished and and municipal get at it, one Rob¬ secu¬ quite the same with the is somewhat nounced pro¬ more Treasury issues. in Big ; the case of U. S. story in rities January Calendar Presumably potential corporate borrowers still are disposed to look for bit a of help tomary January since mand of National a * 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 an to believe grounds, belief. attack. are on 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 if 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. of 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 to market sale of bonds. you the military has spending money you If the Large Issues - explanation given to the military figured that if it were to go out resisted second one no over issues, new The final half of the President in the light traitorqus which, of that is want on $100 million two largest being $30 million each for Connecticut Light & Power Co., and Washington Water Power.; in 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 to suggested, the CIA has been tell¬ me for bids. up week The - to absorb, additional an 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, of 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 or 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- I Cutler, Secretary branch, is^uo question pro¬ a 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. — as 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, As Madison Avenue space the American . 3.84% basis. a 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 In country has Gaither re¬ apparently it has. And a 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" on up the Chinese who came. to spend $22 us 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 In tion director of on 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 am so have yield Stocks moment a 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 A finished which secondarily France were the and doers - nation class were. we 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 of fore ilt u for Investing in the Drug Industry the of 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 58 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. in arc just ended. just prior to the Federal Reserve Your in 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 O. offices here securities business. Stephenson has opened Volume 187 Number 5704 . . The Commercial and Financial Chronicle . (9) Interest these Bonds is exempt, on 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. ; ■ v 1 of Chelan . County WASHINGTON • 5% 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 at on (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, at the option of the District, at 100% of their from (a) the the amounts credited to 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 to are be issued to 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. as 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. 4 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 &, v ' 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. 1 REYNOLDS & CO. BACON, STEVENSON & CO. HALLGARTEN F. S. SMITHERS A. G. BECKER Sc &, CO. & 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 on insights into money, the Russian situation, Eisenhower's condition of supreme importance. will be influence its What upon Russia will be, no¬ knows. body probably It will not affect busi¬ general I believe ness. for that '■, some time our Pres¬ S#Jr ident m i m policies I much a n t a n d , to his b 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 a 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 - an 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 of 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 or Hoover e e 11 sales. retail further be 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 by 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 to Russia that believe cannot I World some War III. case avoid World of any retaliation by 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¬ of ') There (21) unless line be 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 a year broad This ment " there will tional strikes during industry, with the should wages v na¬ difficult for the will next be group er's seat. of commercial of 12 largest Philadelphia Banhs the fortunes large will These a have the be first reach to 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 of 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 on - sections when ■" the disarmament in It 1958. to me now, however, that the present race in guided missiles, atomic underwater navies, appears back to 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 L. Broadway, Company, 50 City, spe¬ New York in bank insurance and that John been admitted R. announced DeMarco has Admit lo many' corpora¬ tions interested in atomic energy, . electronics, rare to 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. a 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 G. Sturch have staff of. Shaiman'and Company, Boston Building. their dends and marketability. .Electric will always be in demand. (48) Most railroad stocks should of forecast a (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 —■" 'L available cash growth as . to come these more market dictator made market stock (35) The growth of suburbs continue, although many houses now occupied by wellpaid executives will be forced on the to it if 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, to 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. in (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 1 to Pr bearish. Our country is not how operating 011 the Gold Standard which was responsible for recom¬ l (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.' more 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¬ by vestors. creep part of the cold-war program, retail prices will also be fixed. in avoided ^ as a cient There is too much missiles, bombs, and report. years, the fixed be 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. be fallout. ;-/ forecast that exception of (26) I possible but .the 1958, will the ®bout increase of unemploy¬ an during 1958. is annual labor leaders. I forecast that there will be during trend years for lower levels. Dow-Jones the of will depend upon President Eisenhower's physical and mental —*■- PHILADELPHIA • of 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 be one ever, (32) PITTSBURGH will of the big corporations-whose i« r-mnnothA "80 Riim stock is among the "30 Blue will • owe debt a The Taft-Hartley Law will not be repealed in 1958, and may more severe. be 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^ We industry (31) Land adjoining cities and towns will increase in/value dur¬ NEW rORK but the automobile, stage where it could revo- a stock Send for comparison late m . the to lutionize revelations brought about by the investigation of the Teamsters Union may lead to im¬ v 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 . in should roads much ing a ■>'./■ the in 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 n ? 4 t° recover :theie_is rationing of ?;/" of 1958. h j n * automobile industry is no>y reach- Outlook will the that part n u should v 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 be 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. to "Authority" crease stock purchases and labor, real estate, and business President municipal, other business to suggestions on ' Next 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 By demand Money rates may be during 1958 by an eco¬ (15) "fixed" there will be a greater for cooperative modern country of 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 of the Treasury Maintains expansion. laws must be fair tax economically sound, with well as cost economic through its influence individual corporate as costs, price ou determination, come well as 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 o • as ior and is clear t fra t h c a n the o f allow¬ ances Dan important Throop Smith tax receipts. The treatment of de¬ preciation also importance ence on is of fundamental because capital of its influ¬ investment r: and the rate of industrial expansion. Modifications - . countries in both discourage tax deprecia- foster to and to 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 to 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 . on im¬ ac¬ in business investments equipment that in plant Were not invest¬ or .* question of "How much?" involves a determination of the total amount ciable be to the life of over an 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 to of 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 to the or purchase and pressures re¬ were duced by making other capital outlays less attractive temporarily. y * • Other countries have used spe¬ cial allowances depreciation foster investment construction or needed for in industries to free tax tax-free a forward order transaction is tax not a carry basis consequences deemed and for sound book purposes public reports. re¬ Adjusting to Inflation par¬ In 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 more new assets, in¬ discriminations'be¬ in 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 a i particu¬ the and as matter a of eco¬ of technical solescence years New\ every • such salvage is usually. common the fact that for a 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 of peace. . v man and free, vV 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 on forward look* which invite attention and a to INVESTMENTS We offer be incorrect of because of circumstances a 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 A limitations in demand for finished of to 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 to our Canada. rapid price increases after the war when ment have it paid because trfi to repair and high replace¬ of 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 more 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 as to the way on page 29 Company limited • • Investment Dealers Since 1921 50 KING STREET Montreal Vancouver Quebec in 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 a And ancient the determination in • 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 to 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 of free lowances" tion to the regular drastic so 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 as are r of 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 to of substitution or that so merely in '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 v breaks •v; tion have been made in various ,v third question of ment problems. lead to large changes in can in a to counting, but it is not generally deprecia¬ tion ignore These, whom?", which determin¬ ing "When?" and portant methods later cost be sure, "To in g e s several counting really come down to the two simple questions of "How billion, it to 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 of much?" relation ,on the essence, all the problems and controversies in. depreciation ac¬ • The ital housing In an 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 t in 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 in seen analysis, for investments with what war f other the as automobile, transaction, and the parts must be too, used special tax allow¬ many, ances . in 1954,. and .expenditures ; to 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 of ference purchases. : more 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 no removal be 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 of cost ignored. But when a partially used item of property is disposed of while it still has sub¬ SMITH* Secretary frequently the SECURITIES ' : . • 1 2 The Commercial and Financial Chronicle (12) the closely spending Industry Lag Cork Company expounds is there Since a deal good home and us—shelter. A larger income cer-y tainly provides more potential more 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 be 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. T 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 of 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. on a 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- V JIOADLEY. JR.* Treasurer, Armstrong The for market American The And the Building By WALTER E. related 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 S 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 w, niudi , x.vvv qc l°pmen(hare fl°°r when they have . . . ' Second, in most fields manufac¬ capacity to five years. Third, the >eriencing a formations lindicate no is now - us is now current 'significant ex- estimates rise symp¬ until Shortages have Without leadership Business • is 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 of the Ac market. investors. volume As a resilient we flooring know tent during the past a materials good a sa]es activity, information on are cur- still we 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 a levelling in demand industry ;n 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- of new : homes -in T957 as the past several years. The decline in new homebuilding in 1957 can be traced almost entirely 'to the non-comduring each of ing products specifically were in little opportunity or need to know about changes in consumer preferences, short supply, there - What the was consumer wanted was us 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 to be 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 in of easing some money market, credit in de- a demands of other industries, more competitive mortgage rates, and continued heavy amortization payments on existing mortgages.* growth building industry, and . In have to judgment,; rising costs more important than my 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 of older homes large started is slide. to the "interim sell into even unknown the period," to try finest markets products is to risk A 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" in community in the automobile field in 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 In . real a to is 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 a ].jserL two than Ithe offing. There are many under¬ longer-range thn . .. . or J 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 so 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 We 11 _r Characteristics "Interim" adequate to meet foreseeable requirements for existing goods lor at least two turing Problem and Solution Whor, K ^ ^ 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 w i 0 hi r V: ■ Continued on page r 24 Volume 187 Number 5704 . . . The Commercial and Financial Chronicle (13) 1 i' Most men and women ingot of carbon would have alloy steel. So or no earthly you may use for requires billions of dollars' worth of equipment, the skills an 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 - a dime still K* . '* V.V'AWI awIY,' an average buys a - .' quate depreciation allowances, ient cheaper to to plants which semble steel thousands process, we use, supplies it in hundreds of forms, pound. Less we to of U. have S. 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 on Modernization improvement of facilities. in the Chicago and Pittsburgh districts and in the West will soon increase steel-making capacity by more even in cost of factors. a programs than two million ingot tons. product that is mostly steel, the the steel is one of 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 on a better value. are developing steel to withstand heat from atmospheric friction no other metal can, for supersonic as THE NEED is for low-cost steel will grow. It anticipated that by 1975 there will be ten million more 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 a 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. r 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 is developing new sources materials to supplement old ore-boat unloaders at East ones. of raw Above: Coast mill; The Commercial unci Financial Chronicle In Mortgages ing Research Association of America Life Insurance ■ erhphasis months. capital spending decline is pictured by anteed field is ber and major lile of of reason of free to reflect basic forces of cap- To minimize tn to question might be asked as to why djSCOunts on Governmentinsufed and guaranteed mortgages are n0£ a satisfactory device for risk they on well diversified - investment (?*7ka ized $750 edd 1 94 7 the insurance had lion, double the nearly or companies f.omDanips fpx discounts a ? 4 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" in 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 m 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 .A ~ , T956, du:ring th<e not aiingness purchase to |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 vt VA 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 next relatively with are closer ^waJWSv papi.es awa^lrom yA ana rnA tT slack. in figures "the "sS- ^011 'eight ^ mnrteaees"in llion Of FHA x <=»— 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- u n iipH ciinl-» nc 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 to 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 a 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 in j. ^ 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. . T ,r 1947-1956 nearly $47 billion of 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— a ments. $15.6 billion conventional.'In the .. of J _ residential the mortgage past year, ♦An Annual credit in. I expect that address by Meeting ol the tion of Real commit- commit Dr. O'Leary National Estate Boards, at you reduced arf reasons interest the for this by hfe insurance in 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. on the On rates lower levels. There are to an- good reasons - .. u tlcipateoft: a trend may .-e 911 we similar to verge a lieve, , however, f ,, e the I do not be¬ half of 1953. second . , ... . that the shift by i R 4 1 • 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 , ... . in The conclusions I reach of away from mortgages in the past been the rigidity of the eighteen months has been the tre- (1) amount or Asspfc:?«u 4u' breather trend? as nn „ ie proportion a it before of ^ • resuming the in as 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, in 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 n a as 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 as in demand for capital funds by business and industry will cause life insurance companies to in- ri«• was showing ,-.^4 folios which a 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. be 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 to , 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 we . because of the general ^ gage ^n 1; enteral but this situation seems now to be changing toward a decline in exports. For another, abuse . a 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 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 in tn nan The same lets where the highest investment 0f one .u thp +n 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 of more x seems spending i-pWo+ph lelegated to the had the in d een subject to iU 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 , A rate of return figure. James J. O'Leary „ How- it space Federal rS^SSfin that .deep concerned so are 4 v, $51.7 billion Of Which $8.7 we are h_ aro the obligation as have total assets of As 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 in 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 II alternative investments. The answer is of course, that theratfc the element of safety of Beyond activity. ?ZZl on a dampening ef- a Business on 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 me 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 a life 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 of 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- we insurance trustees rate, by the SEC—Department of Com- . Despite trustees to shift the emphasis of their investments away from FHA mortgages. Life FHA more mTaddi* and P°«;tfoIio.of securities of all kinds addi types of mortgages. ilo'rifn^that that of be which life companies can earn on alternative investments. the record of ment will the from mortgages past eighteen As primarily yields on not kept company this it the in 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 A life I 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 to pects for life insurance company investment in mortgages in com- JAMES J. O'LEARY* By DR. Director of Investment order available to in- to at 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 it completely out touch with capital market realities in which Aaa public utility Volume 187 Number 5704 . . . The Commercial and Financial Chronicfe (15) and the by heavy demand for funds Company Expects 9% Cut In Business Activity and industry, there sharp reduction in life investment in VA and a company FHA mortgages eighteen months. has been offset to- by greater a in the past However, this a large degree flow into funds of conventional residential an^ busi¬ mortgages where rates' have ness, been competitive. (3) Life insurance It is difficult to reach sion as conclu¬ year, to where business and the more a 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 of will continue active in the mortgage field. (4) Next year there is a good prospect that life insurance com¬ panies will direct a somewhat larger flow of 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 of the longer run, I rather expect that in the next few years witness shall we increase in of solution of this the which take a different declining has business been now spending, Budgets This will larger in all over-all mar¬ look Co. believes that earn¬ actions many pay out only able percentage of their thus building mean tinuation likelihood, of Weighing leads to all the levels Jones Bache earnings, around decline of of these In 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 on 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¬ go of individual below normal of year-end. flux it of the The events CHICAGO, 111.—Jack M. Tuhey has become connected with Bache & Co., 140 South Dearborn Street. an the proportion of life insurance company assets invested in mortgages. The overall ratio of mortgages assets total life to insurance still is 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 D the ? r. been Secretary o f Treasury of Puerto Rico since 1955 and prior that to Chairman was Puerto the of Rico Planning Chair- Board, the of man bb&rd di¬ of rectors of the ' Government Dr. Development B a f k n Puerto since Pico 1953, Dr. Guillerrno Rodriguez, Sep¬ who resigned effec¬ President of the tember mm Pico r o Rico succeeds 1953, tive Jan. Rafael Bank since 1958. 1, ' A graduate of the University of Puerto Rico with high honors, Dr. Pico He economics. in majored also holds M.A. and PH.D. degrees economic in geography from Clark University, Worcester, Mass. He Coordinator was of Point IV 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 of a director He was Alternate United States Delegate, First organization. Extraordinary Social Council, telephone system permits growing businesses to "let out" their telephone Session, Economic Inter-American New and facilities without Washington, D. C., having to get a whole "suit of clothes" new in 1950. Dr. first Pico, in 1956, was elected president of the Inter-Amer- jican Planning sisted Society. He as¬ principal advisor to the Delegation, Organi¬ zation,, of American States Eco¬ nomic Conference in August, 195-7 as United States at Buenos Aires. Bell The service (Special to The Financial Chronicle) LOUISVILLE, Ky. has The of been — simple and flexible dial grows as the find days when by telephone, so much many business companies themselves faced with overloaded communications systems. to Bond the Co., Inc., Kentucky Home Life Build¬ ing. dial Michigan (Special to The Financial Chronicle) developed a Sys¬ "packaged" type of telephone system that takes up little and is quickly and easily installed. The new equipment, known pact that it as the 756A7fol telephone system, is so com¬ can office space. be located in general Equipment cabinets The dial stalled into an arc a 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 to phones by a as 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 i: 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 to 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 a modern telephone system that In these .With Bankers Bond Co. staff ... in business grows. is done Puckett System brings out another improvement Working together to bring people together ... BELL TELEPHONE world examine and further a present entire imperative to Bache Adds to Staff stocks On 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 of Washington, to be fol¬ Fitting this forecast to the disbursements in the face of tem¬ financing. in Dow com¬ the kind of bal¬ favorable would year. reason¬ sheets that will permit ance Federal up a 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 an market than divi¬ more basis, for porarily declining earnings. deficit effects parent since the early part of this and, & ings will decline allies, decline ap¬ Bache much a increased armaments and increased aid to our foreign more those require study of individual components in the economy. On balance, the Bache & Co. said. within a even a the to • As to 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 be At the problem mortgages to «• withstand Soviet aggression. If the expected decline in capital spend¬ estate ferent Bache & business has been 15 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 By marked expects inflation a sees major slump a 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 as that the tention has loans come The PatU Einziff Union forward unreasonable last Trade their shows at determination inflation. The signs of some resist the to 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 in 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%. to 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 in a 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' a 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 To major trend. a 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 a business of There is bound to be at least one the is bound to slow down as autumn. There is however, now some in that slight hope, of' the face of the rents in increase which will a 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 on able to add the increased costs to their prices. The deterioration of the international economic outlook as a result modity for of prices the is fall in another com¬ reason employers to resist wage de¬ mands. Above all, fears of in the United States, however ill- founded, go some down are a slump infectious, and should way towards damping in which the spiral has been pro¬ of 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 on a to increase his Gov¬ effort V. son, to 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 of components of steel, will increasingly become with East, the in insistent far- which I The coming reJching consequences not spell out. development of a common mar¬ need and ket trade free a With revolution. common a 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 be 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 more a expectations, rising of tion demand the on franchised of 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 A. 31, took which more Callery retired as a Brothers on announced. 1957, it was this action in order to himself entirely to the oil business. Mr. Callery will main¬ devote tain his New office in offices Orleans in and New Houston will York make at 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 I 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 to with it raises, the consumption, ah& problems periodic mass mass Despite it production and mass Nor financing, cannot be stopped. should I it think be, for we believe, you of and Lloyd J. Harty, Jr., will be representaitve in Den¬ ver, Colo. and ing standards of framework peaceful,"and living for a are the happy, democratic people. deepr a prejudice against con¬ sumption, especially some one else s consumption. This emo¬ tional reaction leads rational men to the to same the of forecasts their I emotions. anal¬ and present, the numbers, of set blinded in be of ysers conclusions opposite to come from and their their by future do pretend not to anti-consumption prejudice is so deep or wide¬ spread, but there are a few clues. know revolutions All alone that and emotional menacing runs to and S. forth bring But a con¬ particularly is of many in unsettling, are can reactions: revolution sumer U. the why Europe, us 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 in emotional production is There market philosophy. free exists sion, sumption, and that high and ris¬ best a will agree, that the , associated writh the firm's trading department have looked on a purpose H. Comment see mass Appointments to developments in Europe, since 1950 or so, with real pleasure, and a little pride. For we think- we way Makes like on extensively later. sumption. J. F. system, monetary general Lehman of U. tween Enter Oil Business partner also the popularity by embark¬ firm. policy of tax reductions Richard public spending in increased When William is all Mr. been added to the staff of Shear- a sary It become associated Hammill & Co., Salle La of 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 more — which to extent trend depends on domestic de¬ velopments, however, there is no cause for pessimism. It seems that the aris¬ major wage disputes umers' of 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 a unionist condemned, and there be fall in the prices of imported raw materials provides an organized of 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 of re- sponsible least explanations "original" rise. But reversed. more Trade show at leaders be¬ as 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 in other an 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- on a to 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"; A putting on and of the in took growth, place our that the focus. science expan¬ from the 18th it difficult to century on, we find shift or developments great is significant It of Continued economics, vaae 27 on Volume 187 Number 5704 . . . The Commercial and Financial Chronicle (17) American THE MARKET... AND YOU By WALLACE countries, embroiled in stock markers trends was — tradi¬ r»eiter rally—one of the rather a 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 a increased spending for and they, b e i rig them to, to a.; floor other hearten the general economy. ■times V' dozen mar- to appears aggressive- be coming. optimism of 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 a ter rea¬ for the missing rally this year. Throughout December the list was roughly handled from news a National Tea is Electronic firms It wasn't hard to find sons * points of view of one be of as future and economy temrealization that the easily growth. Diversified security positions, balanced severe values, be held but the future can In the seem most actions, , forever are to be exto the extent and speed chosen to include issues with tangible and calculable odds be 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 a . 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 in — nothing period the 44 less no 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 a seem 10 years. In that line had proved next \ on - be them since or degree, a counted nized the issue recently slipped to its poorest price in gov¬ more shipments and better to outweigh the bright spots, the market has better the aircraft-mis¬ gone less: assured year would much a 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¬ a the /Defense Issues seasonal on basis in Guatemala. On overseas Tne tional year-end the stronger of and is lawsuit • over a higher rail fares active STREETE 17 retically profits of reshould be very evaluated in many instances, theo- can expansion prices only- the years skeptically the are and easy in even: J. . one man another jv „. . . . Milan D. Popovic ■ .. . ' buys, sells; right, one. is t h other e Smith, Barney & Co.} : is * the stock market is rising, the automatically start favoring odds Admits Four Partners But if wrong. , , - Smith, Barney ments bankers, New York & 20 • 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 ■ n ■ y r . ** . .r .* . . • , ' //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 a stand¬ show off year, a * * 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 in money answer 1957 Strong Spot Investment ; ^ thinking was still At - the ques¬ trims, layoffs and mounting easier talk of a recession. Toward will turn the trick as v, 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 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 A. 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 of in their # at ■ -> 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¬ 4o value mid¬ in v% . 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 is this to place economic of a the dollar system. last was depression, this overly conservative hardly put a fair price on the As we proceeded into A. J. Melton, economy. prosperity, the market began to put a price not only on the pres¬ ent but more distant future. able to future and more on the It became fashion¬ project earnings into the and came these mostly past growth. projections be¬ plain extensions of A. 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 William E. Fay, Jr. E. 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, a . 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 is manager of the 1945. He is 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 a A item thoroughly in the - depressed consumer goods in two years. tive a , , , . , . ■ . , . . ~ ■ - * i ■ ' . " ' " > 1 . - _ more see a 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 to Woodring the staff Securities of Cor¬ poration, Denver Club Building. th,e things to pass; soon as we expected then have they just didn't come Was then predicted. On that basis, the stock as 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 He Coast was & Co. Stock Ex¬ previously with The Commercial and Financial Chronicle 18 (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, of security markets, the reverse is true. is too much attention And not sooner if later or 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 a terms. for fourth the quarter , of 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¬ 7 nouncement was made by Walter Craigie,^ senior partner of the W. 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 as eral America. of Bank a served He 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- a 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 on ~ rates lower ' boosts "Interest .. year increase. In poor percentagewise rise will be less than during 1957:•>: V the r 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 8% or .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 in 1947 in the cashier as 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 to riers are at doing business cease A or • , from periods. average For the greater Toml in r son will ad¬ be mitted as Jan. son prices peaked in 1927 while the general equity market continued uated to rise until about the fall of 1929. College And we have it again in the seen part rd the in o 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¬ a ing from last year; cutbacks and stretchouts in military orders, Ad¬ is bringing layoffs in the companies involved; and less stimulus from consumer borrowing, since the rate of growth in consumer debt has slowed down. selves to for blame one United Bond & Share Opens rather DENVER, costly innovation, the package pol¬ icy. This is a 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. a NATIONAL D. Roberts, Sanford and B. 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, 7 ~ 5 ; " ' . . . . > BURMA. KENYA, TANGANYIKA. /AN/TBAR, UGANDA, -v ADEN. SOMA! ll.anp of the the at business 1958 will be at at a of start beginning will ernment State and local gov¬ be should tribution plant » „ number of tion , -the whole will compare with the year 1957 will depend chiefly on the trend of the six items listed year as a below: ' " ' 1 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. is 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 to 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 at Trade Fair at "Business outlays for new New York public relations counsel, has been awarded a U. S. Department of somewhat be spending greater. 5% least Government larger Federal the than in 1957. producers National the of 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 M i 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 of higher point than 1957. How next Governmental spending— purchases of goods and services by Federal, State, and r on National "(1) Ahmiiganwting National Bank of India Ltd. and Grind/ays Bank Ltd. , t" "As measured by Gross that GRINDLAYS BANK LIMITED New York Bell C. Vallier, But in the Herts, Secretary-Treasurer. Trust Company, 120 BROADWAY, J. Robert Vice-President; become Bankers Bulletin in President; Jr., have been included in the policy gratis, formed with offices in the University Building extra line cov¬ by 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 in 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 of index the for 144 will 1953 first months 10 of The 1957. lower. average for the year probably be 2% or 3% ; "" "Based on results for the first months, steel ingot production 11 this year million should be tons. The about 1958 likely to exceed not tons. activities exhibit staged as 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 in 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 of 7 Cited for Contribution Conclusions Outlays of the cost to the insurance com¬ items. the other five "Purchases the factors A. C. Tomlinson of 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. as f 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 , a 1, 1958. Tomlin¬ later 1920's when insurance stock H 777W. Oristano Associates affects the dollar course The its recent "Business Bulletin." capital effective ner Mr. saw of been part¬ that in the We data. ment of totals presented Bank points out part, insurance general stock prices tend to follow under¬ writing results rather than invest¬ trend is 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 a by 1958 The ment writing results from year to year at 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 more 3% lower than in 1957. loss. a 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. is 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 (19) become Mr. Chairman of 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 to tees. ous that of a named Thomas-Re .Wilcc«;\lprrnerly Vice-President; i has/; been ap- Commerce. Boehm Mr. officer an in ident to was 1930 and • Barnett, the \ officer in charge' of the bank's Securities Mr. - to his Corcoran, with career Customers and erations. Mr. \r 78 Carl E. Executive Mr. officer Wilcox in charge branch is the of 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 S. Harold • N. . New been - Mr. Northrop .joined : Mahufac-' Trust Company in August J. Troxeil, in Wood search turers 1931; became Thomas t „ J. the for t /. The * appointment - of 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 of held. share one Stockholders proposals at r a This would in¬ New York, pany, announced Dec. 26, it was by William H. Moore, Chairman of the Board. # Irving . the tt 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.' in stockholders : both January, according to nouncement Moore, on 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 of the vision and Joseph J. Mr. reer the of ager Office. ' Foreign Little Neck Behlers, who began his with the bank in : 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 He was in 1948 and President in an named an offi¬ Assistant Vice- 1952. Mr.. Boehm with handles European ac¬ District. promoted to Assistant Vice-Presi¬ - : , an 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 in 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. # :> ^ At a • his ' career Company in and thorities, is Feb. of Mellon Bank a meeting of the Board of ness the Flatbush Savings Young was elected President to will succeed John S. Roberts, who of the bank si: cording to the - an Shields & of 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 as northern the undertake division, additional an assign¬ of administra¬ manager tion for the northern division. , A. G. Edwards Partner « Dec. certificate was issued approving and making as of the close of busi¬ 13, dhe merger of The Washington National Ellensbui-g, au¬ Ellensburg, with of into common National stock Bank Bank Wash., $200,000, of of of Washing¬ ST. LOUIS, Mo. Lawrence come a C. 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 of the merger At the effective Weil & Doyle Admit • charter Bank Washington, Tacoma, Wash. date of of ' Daniel Davis J. membership the Stock in 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. of (Special to The Financial Chronicle* a on York Jan. 9 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 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 to of si: President Dec. 3. 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 ft 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 of 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 on • " 28 President, of Trust and Frank R. Ranking, E. A; Directors Bank an Si: Vice-President Soaerlund, Vice-President, has bden elected by the Board of Pittsburgh, of 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, in 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, R. 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 a $1,100,000 to Directors of the Frosf, National * .^-0"*'? '!}} \ , an Dec. if! . Presidents at Banker^ Trust Com¬ from value $10.) par the bank's capital funds $2,456,250 to $2,925,000. 1 appointed and $1,600,000 by the sale of . was $1,100,000 by to 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 on an Division, . Proskey,1 who:-joined 'the 1953, was made Manager the real estate department of crease from ; Foster five vote £ : n.- ." ' ; bank in Sec¬ Trustee. meeting Dec. 30. Jr., and .y• each will Security Re¬ Department, a 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 , L. been Assistant Cash-, an 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 shares 24, the were Company, has Dec. on Proskey and Co- Kilcran He was elected k Flowers, former sj: - .Vlef Assrstant an 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 of MaeDiarmid * has and became of the bank since Credit • Trust ' 0 Bank - "> . chandise Mr. Flowers has been in Vice -S. sit: -• to 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 by promotion of Ralph H. Nay to an Assistant Vice-President in the appointment of Eugene S. Northrop as a member .of the Manufacturers of man The General Helm, Chairman. Albert C. Smith, Indiana- •. of Bank, announced was tfi ' ■ H. it 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 — v 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 of New been the been named George E. Barriett, Jr., Bond Ad¬ ministration; Charles R. Dodsen, Petroleum Department: Julien L. McCall, Southern District; Paul of Bank " of increased by-a stock divi¬ $180,000 to $300/* from William / promoted retary. been Exchange pro¬ elected He Treasurer and . si: of - ' 23. Mr. Edmund G. ::t R. officers Secretary 1948. the announced Vice-President to Dec. ■«' Avenue 1922. officer in # bank's in bank an senior the in 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. k Loan Bookkeeping - Sections of the Banking Operations Division, be¬ Thomas R. Wilcox ident. Three Com¬ Flaherty, in charge of the Midtown an Brokers 111., $180,000 value $10.)•' Mortgage Officer Vice-President. ❖ his began Trust was Partners in Shields con¬ - capital stock frOm $150,-. ... Assistant Assistant to in 1929, is in charge of the pany pointed who Bankers was Vice-President Robert,"W.- Ciuila : .. / /-.•/• be new stock .ef¬ fective Dec. 19. (Number of Shares Bank" .Opera¬ - . Assistant from position present 000 Comptroller •operations, - has- been 1947..'« and to 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. in of si: First Morton /. / /v.; .*•/ • of ' Personnel an Assistant Vice-President in 1944. Clearance Board will branches by as si: The . its branch bank. t moted with the National Bank years the r t . 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 in 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 W. 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 20 Continued from I . . Thursday, January 2, 1953 . (20) the It 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 a we 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 7 page A Golden , * national affairs our structive to would also are of the others in to of 1961 and the 4s of Aug. 15, because I of when Eden, it may will sooner The this era we shall from this putative be taken for granted that our economic sins or later find us 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 at 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 is now was well a Nor is ■ ♦ 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. 1 were the of reffinding maturity of 3%% of indebtedness of of cer¬ and billion $l1/<> money were the of new attractive, very indica¬ as ket when conditions der the reached. are right. Un¬ circumstances, I am con¬ vinced that that, the dicates is 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 in heavy are short certificates and should at 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 3) 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 be to market a strong sharp rise in Govern¬ a 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 in a 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 a 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 a as 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 a From fer a the of the House J. Van New York City, underwriters and o\ distributors has a been municipal announced. member of the bonds, Mr. Kezer, Ingen or¬ Van ganization for 15 years, has been active in tax-exempt bond circles in State the member of nors of of New at and years many the the Bond for Jersey present is Board of Club a Gover¬ of 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 B. 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 of 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 y .. predictions are always dangerous, but I am of the .opinion said Chairman Martin of the Federal in 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 or discount coupon attractive an • . . .J is¬ . to be added, no one can say what * it as , at the end of * their of . 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 as 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 e are the time to initiate a change has Forget national debt an as bond weeks.' t h generally supposed to be, and that - >225 is been ment clearly indicate that the monetary authorities are convinced that we moment a 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 a 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 an , But bonds the 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 as true 1962, convinced that such am 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 on 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 it . 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 a 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 as suggest. much far too or at on raising Small have a 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 an with selling at 92 Va, to yield to maturity. In order to a the to 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 at tax bracket may pur¬ coupon 3.12% ! v of the result a Government a Vz% 1962 pay for come as taxable is 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 is 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 So dreamed never are give rise to capital gains possibili¬ ties in these issues. The apprecia¬ as 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 A. satisfy, current income needs. Ex¬ with J- Clayton Flax & Co., 1562 isting tax laws and the substantial Main discounts with Edward E. at which many of the Street. He was formerly Mathews Co. Volume 187 Number 5704 . . . The Commercial and Financial Chronicle (21) Continued from 3 page recent supplied were with great a 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 to this ex- curred in since it ocperiod of rather close- a ly ..controlled interest circumstances rates when completely prevail- were different from those important ing.(( 7 7,. 1 only in us perience,' however, • bank were now „ demand for credit . even a Federal deficit Since the 1951 to a 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 no the on and monetary policy designed cushion a business recession, money money that three- to five- (. somewhat longer or a In less than year, yields one to lift increases is not in interest rates that vS •percentage^ percentage oiM/ t fe?QqoUJ~ I ' It has been fashionable in quarters recently to ^n m point ^x abodt about say some that the authorities moved to° quickly and their six too mnich in that to atbusiness top that year today, the over-all experience the of tempt to call a 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. It is 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. a busi- do not hold up either under:jsueh circumstances. . During. World rates .of were War interest " for fact eral that smaller debt after there amount repayment Government. factors in was This trick easy acconi-Jrn&y"' be likened to was a 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 t 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 on a . 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 the one concern rates the took to 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 if to sharp slack¬ borrowing at a mortgage borrowing. further narrowing in really to the fact that have the at last achieved The lift from come Federal Reserve full control a over demand deposit expansion stopped it so far this and level System break but the price also seemed in further in all the rates shot categories up in the banks August, the prime rate of raised from 4 to 4*4%, discount rate was lifted was the and from 3 after. to 3*4%, Over this rates related shortly there¬ fall interest past themselves to in rates new these tern for period a of credit re¬ straint. Treasury bill yields (90 days) tended to be slightly above the discount rate, while the mar¬ ket yield on one year Treasurys tended to about run *4 of 1% or the somewhat The to credit •' Looking at side; there is to son demands The interest rate outlook, the • . ' • have it is already mentioned that too easy to explain how not we got the one-half of last one one-quarter to percentage point rise in interest rates last year. In¬ terest rates seemed to float up without too much of push. In small and other an credit supply particular rea¬ major any change from savings panies, life as institu¬ insurance mutual banks, saving and loan associations, pen¬ sion funds, and the have like. been These that sec need term. near change that in the The principal shift in credit supply may be expected the commercial bank sector. additions to credit declines brought changes Even in about in credit rather the small demand supply substantial price credit. of reversals of those pressures, therefore, might, result in a similarly striking shift of credit costs on the easy side. How the demand and supply forces do seem ,to be shaping up the for First of all, business demand for credit has become surpris¬ Policy We alreadvlnoted that have tions liquidated rates in 1957 the cessation was month in one which is we can deposit expansion possi¬ Bank but that only credit has expanded, expansion has in time reflected growth Monetary expansion, was stopped largely deposits. of course, as result a of Federal Reserve credit restraint. It was made Nov. on 14 dramatically clear that the lias changed serve Federal terest rates rate, by soon further relaxation supply credit, and further on availability of therefore, should dramatic banks. at There disposition at not may banks The loans at this time and from these levels. And there may not be the loans either. Rather, demand for banks will probably attempt rebuild their positions in U. Treasury a'nd other securities. rocket in¬ the second rather In stage —1957 large the loan The surge following the pace of corporate ex¬ fi¬ nancing of recent months may not continue very far into the future. At present the is lighter corporate calendar than time past. plans for it has been for Figures on busi¬ plant and equip¬ ment spending suggest that before long the related demand for funds ness the economy more vulnerable, than it was in 1953 deterioration in confidence set to off by inventory readjustments, declining profits, a sagging stock market, rising unemployment, and declining retail sales. It seems in to is fast now becoming—can the credit that me the issue a shift climate, along with some change in the Federal budget picture, shape up businsss suf¬ ficiently so that the current busi¬ downturn does not further/4 capital spending and set off and other a cumulative cycle of business decline? Credit policy may prevent "only if it It possibly help to development, but very such a is orientated *4% the importance the of toward in shift a in As the Reserve easing real, instead of largely potential, the market will respond further, although perhaps less dramatically. becomes The major forces about the rise in restraint brought yields—primarily demands on that for credit and bank credit expansion are being re¬ The changes in credit de¬ mand and credit supply that have already become evident could eas¬ ily carry the price of credit back at least to the levels of 1956. still a substantial There further ket to the new business on 3% officials will insure that policy will cushion, rather than aggravate, any business slide. Accordingly, if present business trends continue month the over next two, we can expect in¬ creasing action by the System to improve the availability and lower or the cost of credit. This would in¬ evitably result in the of interest have rate term kind ease. drop intermediate-term that earlier Short- every would rates same movements characterized period of monetary sharply, rates would quickly follow with another cycle of declines, and long-term yields would The inevitably yields follow decline recent only be may in a along. market starter and lie ahead. much larger moves may Boston Investment Club To Hold Meeting Jan. 9 BOSTON, Mass. the Boston speaker — The Boston Tabell, will Yacht be Director Club. Edmund of The W. Institutional Research of Walston & Company, Inc. Mr. Tabell has lectured to classes at Harvard ton Columbia Business Institute of University, School, Finance Whar¬ at the University of Pennsylvania, and others, and his articles appear in many newspapers and magazines. Contributing to his national repu¬ tation as a market analyst was his prediction in 1948, when the Dow- Jones industrial average of com¬ stock prices was around 180, mon that the average would reach 500 sometime around 1955. Mr. Tabell has chosen as the securities right his topic, "What to own are in 1958?" ad¬ mar¬ August M. Amend discount rate, activity me dinner meeting of the New Year tear at 5:15 p.m., Thursday, Jan. 9,7ft- testimony to of such Federal credit to seems S. reduction supply of bank credit. force ease. Investment Club will hold its first in the bond market the discount rate is rates is declines! capital markets, the traordinary some through" last month—put interest in the record high orbit for rates mid-year. Neither is zip elsewhere in the much loan figures. After the turn the year there could be some makes overcapacity us number of sectors. a to particularly when the movement year, third a of at an accelerated in be increase to of credit supply, rose ease this score. This easing take the form of any increase in bank loans not may bank Corpora- a particularly half of the -- on Re¬ its credit pol¬ bank market squeeze since given Reserve ble. ingly the has time in a This demand versed. less than hand, we have had spending boom, capital quite pos¬ sible, therefore, that the Federal —have receded and of other expansion in demand deposits and of growth in bank credit to make there and expansion of demand deposits Was sharply reduced. Reflecting the of less even large amount of investments in-4 stead of increasing their holdings, money a key factor in the rise in interest bank lethargic for this time year (December). There which for ness Recent Change in Federal Reserve business period ahead? interest on some discourage justment to be made in the gov¬ in the major , reasonably stable and predictable in the past and there is nothing that I can far and com¬ savings (businesses, was ' aggregate volume of funds tions such additional words, relatively On as .. of pressure on bank reserves. The as have already noted, is clearer now than it was a month ago. The we in predicated of business prospects. be facing a rather gentle business slide which will not last a ' rl'. ; no expect in the point Outlook to the extent of as decline appraisal compared with 1957. Treasury wer£ also at' the icy. Some slight easing in bank 4% level. New issues of high grade reserve positions had already oc¬ corporate bonds required yields curred before that day. To make of just slightly under 5% to move any sense, the discount rate them into investor hands. change has to be followed at some , present We may I fairly normal pat¬ a judgment rates must be expect* this administration sources Last already propose a deficit budget in beyond mid-1958. ' •• This is the January, despite larger defense pattern that the majority of pre¬ spending. The Federal budget, dictions would seem to consider howeyer, does promise to add' most likely as of this present time. consumer the has to to whatever be done. what the programs, of this may some not available the For interest reasons, because determined rise index. non-defense on ' year. The Reserve did this not just be¬ cause business was holding at a high back of done in credit policy. any larger defense spending by cutting out or cutting do basis Business Outlook for room the future adjust¬ so It is not my assignment to eval¬ uate the outlook for business. Yet outlays will be of course, possible is, is consumers, the been there was less use of credit by all major categories of borrowers credit readily available. may spending, on the other likely to be some¬ budget estimates, It make and in that sector of the capital market piay be even greater than in Treasurys. All this I expect on from any expect seasonal strength in business loans, and yet we have had a decline rather than a rise so ernment) but there The Postwar Return to large, much cheap, ment will seems higher. a business Federal the Fed¬ by banks and has a offset, at least mid-year, by . point rates .was reached from the low money pojpts of 4954 -by a process that seem present levels. available However, these about were ening I Recent Interest Rate High ;TJie/rgcent high level of interest governments remain increase defense much - frozen at the low unprecedented an -period. 11. 4-77- probably since the collapse quickly ness given under the impact of an easy credit official recognition. Credit easing question posed today is not which policy designed to cushion a busi- in 1957 and 1958 may not go as way will the interest rates move, but how quickly will they ncss slide, that intermediate-term far de¬ and.-.as fast as; during the yields are quick to follow- such- a-3953^54* period/ but I wouldn't cline, how far. will they go, and how long will they stay down. collapse, and that long-tqrm, rates count ontit. can local and and to the response state not p ease Borrowing by above more above it. Investors and particularly ,953.54 business downturn. This At the beginning of many banks, needed a lot o£ November, point of view even seems to have we had a tempting before they would eomrate structure that was achieved a following jji Federal ■mit funds lor long-term investsimilar to what prevailed in the Resel,ve .circles. It is probably two ments at record-breaking low tight money periods of the true-that in the summer of 1953 •yields. Those investors who moved the federal Reserve took a chance 20s', in the sense that short-term rates were equal to or eaily, of couise, proved to be wise higher than ^ ^gi^g its policy in advance of or lucky.As usual, itlooks fasy gptidi,evidence of a business turn, long-term yields. The Treasury's in retrospect. one • \ year borrowing rate, for ex¬ 7v. arid^that it later luckily proved to "For purposes of ample, was 4%, and intermediate assessing the be, correct. The Reserve ' seems and long-term borrowing rates for interest rate trends ahead of us to have felt this years. further. what . twf-S ff'o ^ capital market could hand, on — the of first nine months of 1957.. Treasury biils collaosed from over became worth rather little in the 2*4% to substantially under 1%. scramble for investment outlets. Yields oh five-year Treasury seBut long-term yields showed curities..dropped from about 3% steady decline, not collapse. Yields to about 1%%. The decline in on long-term Treasury issues, for yields on long-term high-grade .example, had fallen from about bonds was only a little over *4 of 4*4% in 1923, to 3*4% in early 1%, but that change put Victory 1928 one percentage point in bonds up 10 points to par. in somewhat roughly 20% in the sale of bonds by corporations and by state and local governments , _ it occurred this year. On the side of credit use, the major items were seems in return Actually, got the energy to produce the sub¬ Trends in Interest Rates ' • times. to see where the third stage easy 21 and interest the down side. Bills in August Walston Dec. January should adjust to sell at 2%%. The one year rate M. & Amend, partner in Co., Inc., passed away 20. around R. A. Rarrun for Opens the Treasury might not be higher than 2%%, the five year Treasury yield should be around LEVITTOWN, N. Y. —Richard Arthur Ramm is engaging in a se¬ 3% long-term curities could 232 td 3*4% at 3*4%, and bonds of par, Against partly the 1978-83 on sell scarcity value. name from offices Avenue under at the of Richard Arthur Ramm & the present Treasury Co. He yields, corporates and municipals heimer even business Division was & formerly with Oppen- Co. The Commercial and Financial Chronicle 22 . . Thursday, January 2, 1953 . (22) to meet the re¬ B first page gether. necessary closely more to- The direction we both are foliow- ing must inevitably lead to war. * sui'e that neither we nor im¬ Indo-China and Formosa, costing they would choose this way to portant than a balanced budget. in economic aid and military sup- sure destruction. • >;■ I, don't believe that they neces¬ port more than a $1 billion a This over-due change in attisarily have any relationship. If year, has no terminal point, unless tude cannot be reluctant, halfyou need ; a deficit in order to one could be brought about by hearted and unconvincing. It must maintain economic: stability be¬ making our peace with China, be a courageous, straightforward. in turn, has added these costs on ; cause of a deflationary develop¬ This means recognizing her diplo- generous right-about-face; — so to prices—wherever possible. and supporting her convincing, the people of the -y ; ment, you should have a deficit— matically whether for defense 01* any other membership in the United Nations world will recognize our leaderThe basic controversy,, which: —as we did long ago in the case ship toward peace. Z will determine our economic fu- - purpose; You may need a deficit defense adequate Economic The Cunent world munist quirements of our economy. The President recently said that an become Continued from )f was in involvement Our Korea, more > And Political of amount the money could it limit¬ create—which is, of course, less. In the this situation dilemma—especially for free society, a creates a without - a defense program to * of Russia and all her satellites-— Let; us make a beginning by (hence, our type of society), ( maintain production and employ- : as well as every other Communist encouraging in every way-'.posNational Product,; after; merit. But you should not permit,* and Fascist country in the world, the tax take,, shall be divided be- sible, people-to-people contacts. a deficit-solely for the purpose of' Why should the great and proud We should trade with the Comtween wages ion; the/ionO hand,; maintaining an adequate defense nation of China be our only ex- niunist world as we do with the and business profits on the other. ; ; the world. This would For many years organised labor. program, if the effect of so doing* ception? Why should we continue rest >0f is inflationary. It would be more to bolster the costly and sagging has demanded—and is getting— kring us closer together and proin accord with a stable money Nationalist -Chinese Government rnote confidence — the beginning an increasingly larger share. This has been reflected in increased policy to increase taxes or reduce —isolated, with our protection, on ; of the road to peace. * > other expenditures. /,;'.v>. Formosa? Why:.- shovtld-^e^ist;:.*. mif. Hnnrs <?o prices and a decreasing ■; profit on recognition of tK» Looking realistically at our do-; margin. According to a recent. the world can mestic picture,, and likewise our: instead of acknpwledgmg study by the Twentieth Century travel free!y; and get to know us.: the international - firmly e3taolished and powerful. wh f Kave we eot to lose bv an Fund, total wages and salary dis¬ situation: on bursements were 50% of the na- - front, we must—if we are honest; Government:.of - more than.*00 ture is how the politician, whose constituency want ea^y money, lower prices, higher wages, greater profits and fewer ] taxes. < /;. , these effort to cope with Any successfully, is the province of the Federal Govern¬ ment through its use of monetary, credit and fiscal policies. Also, Government passage of needed legislation to deal with the prob¬ lems which develop on other eco¬ diverse forces, fronts nomic tance. is vital of r vjV • _ impor■ of Commends Federal Reserve During the past two years, the country has experienced a serious inflation of approximately 5%, which means that the purchasing Sn^V^deaSs , and cultoes? 73% i with ourselves—come to the con- "Vnr,?:? A..,. • We should Stdn sabre-rattling. dividends elusion that our leadership has; * decreased over the same period < failed to meet the urgent prob-; from 5.8% to 3.9% of that income. , lems as they. have crowded in on • , Let us be magnanimous enough The workers' share of the national us from every direction. As a strongly supported the regime of income since 1950 has increased result, we are almost overwhelmed Dictator Nasser, as our selection to recognize superiority, without , envy, wherever it exists. Let us by the pressures upon us calling —contrary to British views? by 10% — whereas the business tional *' , it in income in 1929—and E.1S TA*;™'1:1a 1955—whereas applaud when applause is indicated. We have , had—and will continue to have — many firsts, inflation has taken to furnish arms to our erstwhile Why should we be so egotistical astrous, for inflation destroys the figures that business cannot ab¬ peacetime sorb out of profits, as organize^ resent achievement by will to work, save, and plan for place, largely because the monop¬ friend, Nasser—and then be sur- as - to labor contends, increased wages olistic powers of the labor or¬ prised because the Russians others?"-•■/■% * the future, which is the very without increasing prices. In providing such leadership, I foundation of our capitalistic so¬ ganizations have been allowed to stepped into the breach? This all power of our money has eroded by that amount. This trend, if al¬ lowed to continue, would be dis¬ courageous decisions and share, represented by profits of for Why should we favor the armall corporations, has decreased by prompt action. ing of Israel; approve nplitary aid 33%. It is apparent from these On the domestic front, a serious to Communist Yugoslavia; refuse corporate profits were elimi¬ as is the case in a com¬ munistic society, there would be If ciety. Federal Reserve, in an ef¬ The fort to curb this development, has nated, go by unchallenged ernment. which the Gov¬ adds organizations, These have grown immensely in to the mess we have in believe we would be acting in our own enlightened self-interest—as up the Middle East. It is now recognized that critical as anyone else of the in¬ flation that has taken as place—and lacking in constructive propo¬ sals to deal with it. Since April of 1955, Reserve raised the Federal discount rate the disbursed, it is estimated that the Federal Government collects about six times, from 1V2 % -3 Vi %. This one-half — or 1 V<> % — leaving the action was taken to curb the use. remainder to the shareholder to ' of Federal funds Reserve the well as charting others to follow. our size and power, have never been NATO organization is in jeopardy subject to the anti-monopoly laws —and new plans for uniting and of Government to which business strengthening the alliance are has always ' been accountable. under way. Why should we reWithout such control, there could tain Mr. Dulles to bring about this mately one-half of this amount— be no limit to their demands, all new unity, since the dis-unity in or 3%—is disbursed as dividends. of which, in the final analysis, which we find ourselves is largely The balance--or 3%—is retained must be paid for by the entire a result of his making? It is unin the business. Of the dividends American public through higher der his aegis, in fact, that our courageously made effective use very little difference in the prices of its powers in spite of unrea¬ paid by consumers for goods and soned opposition from powerful services. Corporate profits, after groups in — and outside of — the income taxes, amount to about 6% Government. These groups are as of the national income. Approxi¬ a course for Let us, with courage and determination, mobilize all our moral and material resources in the service of peace. To release, for this use, the human energies and prices and/or higher taxes. Even fortunes have been brought to a with the present downturn in the low ebb in many corners of the economy due to the inability of globe. V business to sell its output at to¬ New Top Leadership material resources now engaged of: destruction— would revolutionize the world for the benefit of mankind, in pursuit the Melis, Slade Partners In F. Eberstadt & Co. inflated prices, the news These are only some of the very basis of commercial bank credit,, If and their from organized labor is that there urgent questions that could be which is the source of our money shareholders did not exist, the will be increased demands during raised about the mistakes that supply. As a consequence of Fed-, amounts collected by the Govern¬ the year ahead. • ; - have been made around the world >oral Reserve'action, the growth in I ment from them in taxes, would by our present leadership. These Turns to Foreign Field ; the supply of money (demand -de- have to come out, in one way or failures in the foreign field, to¬ In the foreign field, the sudden posits and currency) has been only , another, from the national econ¬ gether with the revelation that about 2%, whereas the growth in. omy. Therefore, • the/, total con¬ appearance of Sputnik has forced • we, are far behind in our defense the- - National Product has been sumer purchasing power would us to realize that things are not' prograrii, should, at this; crucial •17% (about half of this was due. not be increased more than 1 lk % as we had been led to believe. No time7"shack us into the realiza¬ •to price increases). This develop- —2% dven if business profits longer cap we lean' on the myth * tion, that new top leadership— ment brought a - money tightness were eliminated entirely. I think of American leadership — which men with vigor, boldness, courage because of an increased credit this is an extremely cheap price has given us our sense of security/ and imagination are desperately demand of borrowers and not; to pay for the benefits we reap* We have been unable to stop un-r needed. Without such leadership■from any reduction in money or from the private enterprise sys-> favorable developments, which: it is not likely that we can suc¬ bank credit. With the demand ex-; tem.M"-/''"" have now lost us the world bal¬ : 1: ♦ •. ; cessfully meet the Russian chal¬ The combination of increasing ance of power. The unhappy fact eeeding the available supply, the; lenge—and: recover our place as cost of money was bid tip/. This; wages, increasing prices and tight is being forced upon us that the the balance of power in the world. F. Kenneth Melis tightness has had the effect of' money is bringing about—as I world does not revolve around the Jarvis J. Slade In any case, we can find little increasing the velocity—or use— predicted earlier last year—unem¬ United States. The /Communistic F. Kenneth Melis and Jarvis J. hope in reading history that a of money about 15%—a record, ployment and idle facilities for countries are muc^' greater in which compensates for the curbing the reason that there was not suf¬ area, resources and1 population— competitive armament race is the Slade have been admitted to part¬ of its growth. ficient money and credit to fi¬ and are rapidly gaining a con¬ way to avpid war. This does not nership in the investment bank¬ If the Federal Reserve had per¬ nance the purchase of goods and trolling influence throughout the mean that we have aqy choice, ing firm of F; Eberstadt & Co., 65 Broadway, New York City, it mitted the supply of bank credit services at inevitable rising prices. world. This is because of the under present world conditions, to — to save. the corporations spend, or ,c- day's - • — ■ . to increase to satisfy all demands, military strength which they have it would have developed and the sagacity of their diplomatic maneuvers. The absolute necessity of a peaceful co-existence between the free world and the Communist world Organized labor has already jeop¬ precipitated a run¬ ardized its real interests, I feel, away inflation—and added nothing by pricing many of its goods and to the available supply of goods services out of the market. and services. The effect of higher The Federal Reserve, because priced, or tight money, is to en¬ of this economic downturn which courage savings, both individual has been developing, recently re¬ and corporate—and to discourage duced the discount rate from spending and capital expansion. 31/2% to 3%. This is the first re¬ laxation of their During an inflationary period, this tight money do other than manpower; ahd effort to challenge and meet on economic which to mobilize resources in our Communist the the both fronts. military A has -been announced. Mr.-Melis an nation make the progress. joined F. Eberstadt & Co; in 1945 and since 1950 has been a member of the new busi¬ department where 'he has been, active in private placements for finance companies. He is an. ness 2 Rus¬ abundantly clear to us sia has made in the military field can certainly make equally rapid alumnus of New York University. by now. Mr. Slade, a graduate of Yale in the economic field, We have not been oblivious to progress the world problems which have because they recognize the im¬ University and Leland Stanford is the effect desired. policy. I would expect this to be been developing. On the contrary, portance of educated and scien¬ University Business School, joined Eberstadt's new business depart¬ During this period of inflation¬ followed by a further relaxation we have spent since the war more tifically trained people. ary pressures, the Government of credit through open market than $60 billion on economic and : : We cannot meet the Communist ment in 1950 and has been active should have pursued an anti-in¬ operations, with later additional military aid. It would appear, on threat by attempting to build up in financial planning work and flationary program of larger bud¬ reduction in the discount rate if balance, however, that we have the backward countries of the private placements, particularly getary surpluses—thereby reduc¬ the downturn in the economy calls gained neither friends nor influ¬ world economically and militarily. in the shipping and construction should be - ing the public debt, %yhile the for such action. I am of the opin¬ ence by our endeavors—and our "private debt was increasing. Such ion that the Federal Reserve, world position has rapidly de¬ •compensatory action would have through its monetary policy, and teriorated. effectively supplemented the Fed¬ the Treasury, through. a proper This, I believe, is a direct result eral Reserve policy. fiscal policy, will prevent the of our mistaken appraisal of the downturn from becoming cumula¬ tive. Because of the rigidities in The true causes of the inflation the economy, however, there is we have had should be familiar not likely to be any reduction in to those who want to know them. the cost of living or in prices The main cause of rising prices generally. Singles Out Labor has been union the use monopolies which labor making of arid fringe benefits, far in excess of Increased productivity. Business, are their power to force up wages can world situation. . riized Communist allies did) Had we China recog- (as our The populations, industries. surging in¬ in these areas, dwarf the With Hornblower huge existing together with the creases . effects of the economic aid able to give. we are Generally speaking, experience has been, along with that of other nations, that our & Weeks -(Special to The Financial Chronicle) CHICAGO, 111.—Noel N. Rothman has become associated with & Weeks, 134 South when it should have foreign aid programs, however La Salle Street. He was formerly been apparent to everyone that well intentioned, never meet ex¬ with Arthur M/ Krensky & Co., that wasjhe Government of China, pectations. Ific*. we imght have avoided the Korean In the light of the predicament Warand the Chjnese invasion of in which we find ourselves, unless Deficit Financing: t: Charles A. Owens Indjo-Ghina. Our threatening at- we change our course and attitude There, has been recent talk de toward China only served toward the Communist world, how v Charles A. Owens, partner in. about raising the debt ceiling to make her more dependent on can we ever expect them to Laird,ri Bissell^&; Meeds-, passed which I would favor, should it Russia and to weld- the Com¬ change their attitude toward us? away Dec. 23.-'-* " • Hornblower Volume 187 Number 5704 .The Commercial and Financial Chronicle .... (23) 23 Burns, Chandler V.-Ps. PiMic JJtility Securities i.. jBxr6HVEN Of F. Our Eberstadt, Inc. Reporter ELY Governments on By JOHN T. CHIPPENDALE, JJR. ' \^ . Company I- Duquesneimport&ht- partof^^the>»Sfan^id. raise frequent Cras"*-;&before ^ :ih*aVipindr; ,^dy,'^sin^ byoftK Standard :: and funds r ' - Gas recent and years by the company and its parents, hence, the stock may not be fully "seasoned." Thirty-three percent of the stock is / will and improve efficiency is using the de_ company ciinjng balance method of accel- • erateci Duquesne supplies electricity to population of 1,550,000 in south- a features xhe Edwarid generating units have new these 24% in New Vnrifm' an 1 a a Mate. pressure facilities. How- ever, held now high depreciation is and nor- malizing the resulting tax savings and carrying them to restricted Pennsylvania,, including surplus. The state commission the City of t Pittsburgh* with'/its -has..hot yet. ruled on this from population Of 677,000. The district an accounting angle although in comprises a highly industrialized some rate cases it seems to have area with a substantial Output of favored giving the benefit to coniron and steel, and coal and coke, sumers (by not normalizing). Other industries include glass, Deferred taxes from accelerated ferrous and non-ferrous metals, depreciation would amount to steel fabricating, rail equipment about 20 cents a share and if and electrical equipment. Indus- these were not normalized, share trial sales contribute about 36% earnings would be increased by of revenues (a fairly high pro- about 20 cents per annum. Ilowportion),- residential £ 3.4% * ahjd ever, the company wishes to be commercial 26%; the proportion sure that Congress intends to reof residential is increasing. tain the law before they decide which that While this this is residential is area below is is rhit* i due the to in usaee U. fhf> the ri S whether to end normalization in the ^°rvd wlth the state comm'ssum POllCy. average, that *000 gas far.f fact The largely used for water-heating, and electric water heater is accelerated not company using satura¬ but may have currently amortization type of electric water-heater but Shippingport in 1958. They continue to amortize plant acquisition adjust¬ ments despite an adverse ruling by a court in a rate case; this thus amounts to only four cents a year tion is only factor, 3%. the U. far there whether it the pany's average. - is of and will be 011 off written by 1960 Earnings for the calendar m- Edward sooner. - the plants com¬ had -ri 1957 a 2 i nfiffSlrw3 P? i°^ estimated at around $2.50 are $2.44 versus in they expect For 1956. 1958 increase of about an °f 7-8% in residential sales and ahnnf iic? £hin&*rt r-V?w 4-5% in commercial, with induswi? a/« 3 f -rp-irial sales about unchanged (NaShippmgport went into r 1 f f ti the aJvWt the power to ?r a-°'Avlh selling AEC Plant and 1 Initial capacity is-- 60;000 ltw which will become 100.000 kw when in the second same . . „ ■ •, , , The atomic power plant will be operated by -Duquesne . Company under the a .. Light contract with AEC, which supplied the actor this for venture initial into the field power by re¬ commercial atomic energy American an ates). Regarding industrial con¬ in steel reactor, while Duquesne contrib¬ uted $5 million - toward the re¬ has demand portion of the plant and provided the site and the turbinegenerator. In order to gain the knowledge which could only be obtained by building and operating a full-scale plant, the pressurized water type of reactor ehosen in 1953 since it was was the only type at that time ready for such use. now Unfortunately, this type high-cost and someThe boiling water being built by General seems what obsolete. reactor Electric for a group of utilities headed by Commonwealth Edison now seems closer competition to the cost-wise goal of with _ trial costs are in strike per annum and are fS?ec^ to, r?r?.ai.t) aro"?d $27~ $30 million indefinitely. The comr .pany expects to sell $15 million bonds jn the .first Offerings"- of clauses in its indus¬ 1956 The caused a steel loss of ciine in a the company's vear tax considered adequate ,.H „ . or so reserves but are to take care . .. half common of >3,95,8.. stock - to Based been .$2.50,is 13.8. making the yield 5.8%. current on the r earnings price-earnings - future. in The comeback of the Government bond market • ... 1946 outstanding events of the past was of the one rities territory later and became year ^ he office ager to the New York moved assistant syndicate as has been sales manager for the nation-wide distribution of Chemical Fund Mr. Chandler has had extensive experience in Wall Street begin¬ . ning with his association with Halsey, Stuart & Co. in 1920. He joined Eberstadt in 1944 and since has been sales , Atlantic States There hanks PHILADELPHIA, Pa.—Yarnall, securities, especially the smaller commercial Many of these institutions have Government portfolio improve to such an switches and exchanges have been made which were throughout the value the country. of possible not adverse effect Co., 1528 Walnut Street, leading stock ex¬ the is Bertram on the Government Smith has become associated with other ease registered representa¬ specializing in municipal a It is this vulnerable most to market, particularly the of the area > - more Government market that restrictive monetary policies. Yet, on the hand, long-term maturities do respond very rapidly to any which is what has been going in money and credit conditions, in the last few months. - on ; so many distant maturities. them tive, Sharply no. months ago, because the resultant losses would have been so large as to make such operations prohibitive. It is evident that the forces of inflation, which were fought by the monetary authorities with tight money and credit, had a very members of the as is extent that not Yarnall, Biddle Co. that be the holders of these territories. announce could question but what the strong upward trend in quotations of Treasury obligations has had a favorable effect upon Bertram SaHh Joins changes, that return - seen Biddle & the Value of Government Portfolios Up the distribution of shares of Chemical Fund and other securi¬ ties in the New England and Mid¬ dle than States Government bonds. However, withi the lowering of the discount rate from 3^% 3% there was a scramble to buy all fixed income bearing obligations, and the market for Treasury issues broadened and quotations moved ahead with considerable gusto to say the least. The change in money market psychology which came with the decrease in the Central Bank borrowing rate was responsible for the reestablishing of the Government bond market as an important fixed income bearing market. for manager attractive more to shares. 1946 much was obtained in United man¬ and most recently * • . - . . bdh'ds. Prior to joining & Further Credit Ease Looked For ; Yarnall, Biddle Co., Mr. Smith the associated was Despite the sharp upturn in quotations of Treasury obligations, prices of all fixed income bearing obligations, there does a past 16 -Mr- years. member of the Phila¬ of ratio * the Municipal Bond Club of Phil¬ adelphia. ; - . . J. A. Birch Co. Formed John has 135 A. been Birch formed Company, with Inc. offices at ident; Alexander Brown, treas¬ and Marcia L. Schweikert, Secretary. Mr. Birch and Mr. urer; Brown were previously Securities, Ltd. Cradock Schweikert was with Miss with J. R. Willis- ton & Co. is in * things in the future has resulted in the extension of maturities by institutional investors. The fact that buyers of Treasury obligations were interested in taking on issues with a maturity longer than that of a note made it possible for the - > Government to sell 3%% bond with a maturity of 17 years. The money raising operation was little short of phenomenal, since it has gone to a very sizable premium above the issue price of 100. The fact that the discount rate was reduced success a 19 business from of¬ Rector Street, New City. Partners are Gregory Doyle and Judson S. Blakely. Both were formerly with Pilgrim York Securities Inc. Denault Adds to an flotation of the leading on unfavorable was development as far as this concerned. The 3%% bond has been issues in the Government market. Wertheim & Go. Will Irving Lundborg to Admit Robert Bach Admit New Partner Wertheim & Co., 120 Broadway, New York City, members of the New York Stock Exchange, on and been John added to S. the of Denault & Co., Russ Building. Elias Gaillard Elias Prioleau Gaillard passed Dec. 25th at the age of 81 following a brief illness. He had been associated with Kidder, Peaaway body. & Co. SAN FRANCISCO, Calif.—John Gardiner, Jr., will become a partner in Irving Lundborg & J. Co., 310 Sansome Street, members of the New York and Pacific Coast Stock Exchanges, on Jan. 9. Metropolitan Planning Cameron staff admit Robert Bach to partnership. FRANCISCO, Calif.—Scott Chandler 9 will Jan. Staff (Special to The Financial Chronicle) SAN few days before the 3%% bond was! put a not Trading Co. is engaging securities at was money a new to 3% market the one London this of from 31/2% new in to be The belief that the Government bond market was, and Form London Trading fices out for better Broadway, New York City, to engage in a securities business. Officers are John A. Birch, pres¬ a modicum of uncertainty in the money ■ mean that periods of profit-taking should good buying opportunities. This is based on the opinions that money conditions will ease in 1958, since the position of the economy is so much on the defensive that real help will * have to be given to the money market through either open market operations which could be positive or negative, or by reducing reserve requirements of the member banks of the system. which should market turn delphia Securities Association and 37*4-3012). The dividend rate is $2.00, of most money market specialists 1955 ern selling around 34*4 (range in 1957 was near the opinion development along this line will be forthcoming manager of the mid-western and far western sales territories. In have recently for Reduced Discount Rate Major Market Prop salesman in the firm's south¬ a . commitments in this con- s^oc^ has of the recent price rise in quotations of bonds. in the money market. To be ? sure, there was likewise a fast and sharp upturn in the prices of ; corporate and tax-exempt bonds. And for a time these nonTreasury issues were the principal mediums of investment for most institutions because the yield which was available in these secu¬ as cents per was settled for another in the * share 3Vz accounts that important i t y and Yale Law v e r s School, joined Eberstadt de- earnings of only share which quickly recouped when the strike ended. No new Pennsylvania taxes are expected in 1958 since the legislature will not be jn session. The big Federal tax case involving Standard Gas systern taxes for 1942-52 may not be about - sub¬ policy which is in the process of being worked out for the money market should gain momentum in the coming year. This ' a easier Mr. Burns, a graduate of Prince¬ ton Un i 25% in industrial sales for several months but this resulted in nection. running around the $27 level decline schedules. rate Duquesne's general construction million oper¬ company operations, the company is not especially vulnerable because it fuel- burning plants. coal two which the ; development and this accounted for the mines and area and the cents; and the mine-wage agreement might be reopened in 1958 (expenses have already advanced ditions The to eon- stantial portion Samuel rebound an natural a A not appear to be more than made for the was the ridiculous. on in line with the then existing money market more for but these might by two factors: the interest credit on construction may decline from 25 cents to 15 in and announced by F. Eberstadt, chair¬ of the board and president. Smith is the ditions Chandler, Jr. bordering were Jenks;1 Kifkldhd, Grubbs & earnings, sharply II , was with affected rather Burns * sharp upturn; a very one .Keir 3%, about Samuel brought about by was sales in increase 1957. utility firm. Westinghouse Elec¬ tric, under contract with the AEC, designed and developed the actor Thus • monetary policy; man discontinue taking forecast has been share be Jn' the-winter of 1961-62. in own Duquesne). average as No • J over-all .would is core 1960. Duquesne will complete a 172,000 kw steam unit early in 1960 and a similar unit . the buUding their may from power Duquesne. Inserted x Lead ig II Vice-Presidents of F. Eberstadt & Co., Inc., 65 Broadway, New York City, Manager and Distributor of Chemical Fund, Inc., it has been year if not 1956 generating doubt produce earnings. end The a new some would creased net At S. has been studying company , Excluding this be slightly would usage above some Burns Chandler, Jr. have been elected western , a ; The'end Of ago. in a rather short period of i of the tolls of the inflation, it was not surprising that yields of all fixed income issues were carried down to levels * l; time. Being - in year in the prices of Government securities ; relativelv low-cost coal has made distributions a pressures, and the severely restrictive obligations.,This ury . and goiqg into the: New Year:on' optimistic note than it did which accompanied it, has put new life into the market for Treas- . sales Government market; is more inflationary : _ 'The - much in- is,- expected none 1959. are The company's generating efT ficiency—about 13,000 btu per kwh —is. fairly low, but in the past •to cept ; construction Metropolitan Planning has formed ration been ties business. Officers President and are Frances S. Kass, Planning Corporation. Securities with Co. offices has been 1519 at Reuben Treasurer, Vice-Presi¬ dent and Secretary. Mr. Kass was formerly .with North. American Kass, Capitol Securities WASHINGTON, D. C.—Capitol of¬ fices at 110 West 34th Street, New York City to engage in a securi¬ and Form Corpo¬ with formed Connecticut Avenue, N. W., to engage in a se¬ curities business. Raymond L. Roy and "Philip G. ners. A W. Both Liickhardt are part¬ previously with were Benkert & Co. Inc. The Commercial and Financial Chronicle 24 first page ter Business and Economic Index heavily on expected betindustries own their order backlogs to In many key items, such as ball incomes and bearings, castings, industrial heat¬ investment have ing furnaces, and machine tools- debts have grown. Rising wages, rising increases in new the characterized virtually planet. few last years throughout the entire Maladjustments and dis¬ developed. tortions have artificial While have attempts all barometers of things to the order situation has good come — been particularly weak. In ma¬ chine tools, for example, new or¬ ders' dropped to $27 million in will largely support raw mate¬ and products agricultural mine¬ substantial early recovery in prices. being made to line with most But attempts are of these in demand many very readjustment has been Possibly, such prices drastically in the period ahead; this is a favorable gest, that a underway. will not collapse nations are unequally distributed many countries face serious international payment problems. Unemployment ally adjusted) has recently been increasing and is likely to con¬ tinue to do so. Minor declines in opportunities States under living have themselves labor force, in our the United in high a of the decline reflect in is industry, a drop of 18% expected; in railroads, 27%. expected of around 7%, which would still leave in¬ vestment in new plant and equip¬ ment of $36 billion for the year a very obviously, the in¬ 57% 12 page .i . , . sales and earnings in 1958? shock- In fact we can already hear requests for "somebody to do ? now about it" The primary responsibility, however,. is - .ours, not, something may the 1957 per- We must see that our individual / objectives have and specific very definite equally Plans to achieve them profitably, , T has bonds, all cost of the reduce credit credit expansion— encouraging factors. . measures of already lifted and encourage +1 „ 1nro During the -v , nA 1953-o4 setback to under (continue to drop a little further, m!perhapS 2% to 3%v In 1958) in_ . °n91/ fladon promises to give way—for i°im °Vei^ a while at least—as the nation's Yields on 5-year v- 1 /o. half only 1%,' or A i« similar and rates credit 10 up the in . , . interest availability companies expect to spend the same as they next months 12 help spark many new loans projects and make it easier and . , ,, Tor our current profits as well as long-term growth and develnTm»pnf ; 1 ' should the , _ over . ^ decline improved in problem o£ one-(*..?ra'P-we are.^aught, in the change put "interim period and we re heavito par. • committed to building markets little but that Victory bonds would a problem and to be by the .broad "lack of growth." high-grade long-term on was j economic No ; yields bonds - . ,. _ ... ' . , , . rather than in an did in recorded unemployment. The 4 to 5 million, or even more, un¬ employed. „ The over-full employment of plus the union-wage pressure, have caused the price of labor to rise more rapidly than recent years, productivity, and some labor being priced out of the market. Manufacturing employment has a fairly steady decrease month-by-month since the end of More than half-a-million workers have been dropped from factory payrolls since Labor De¬ penditures, in spite of the missile program, are not likely to rise very much in the next six months, but probably will rise in the sec- 1958, or $2.4 billion—a rise from $47.2 billion in 1957 to $49.6 bil¬ lion in 1958. ond half. Residential construc¬ take > is estimated 5%. Both plus factors to be 6%; The F. W. Dodge up half whole the situation has worsened. In December 1956, unfilled orders had risen to over $64 billion—the highest since the Korean War. Since then, new orders fell short we each and location We what We must area so definitely specifically the more its dimensions and tential; fresh market much see * • a all take markets. our down can size of the sales must po¬ keep abreast of competitors are doing changing market needs. meet to In short, we must play to strength by being more selective in our mar¬ kets. ; ' The U. S. Treasury will justification for claiming that 1957 has been a bad tion, there is selective more ers. V ;; . . no with custom- our ' ■ ' Third, • must we " - -review our product line with care, recogniz¬ that what we are now sellr ing won't be strong enough to provide vigorous growth through¬ ing out the "interim period.". We must precisely not only which products are selling and which are pot, but. why we are having suc¬ cess or failure with each prodbct. know We be must willing to devote at 10%' to 15% of least money time and our to introducing and testing play to We must products. new strength by being more selective with products. our Fourth, we must make jectives for 1958 very ob¬ our specific and, above all, make clear to everyone in the organization where the best opportunities for sales and profits lie and how best to capitalize upon them. - Fifth, sonnel must we roster determine as the organization y - study never the per¬ before soundness and *' ' our of to our morale of whom we are counting for growth over the next few We years. must play to our key people upon , year for the building industry, Those individuals who say 1957 has been a poor building year will strength by being more selective with ter in in of more 1958 money personnel. our in "the than it will pay of these estimates are State for 1958—but they high side. Orders and Inventories Our survey among trade asso¬ While many manufacturers still ciations revealed that only 16% have some backlogs of unfilled of them thought that general orders, for manufacturing as a business conditions would be bet¬ a year ago. at break must we Sixth, we keep a close eye on first, find little encouragement in prosfinances. Money will continue to out pects for 1958. In my opinion, esto the public, and this may con- sentially the same over-all level be tight next year, especially for Corporation completed a survey stitute a minor'deflationary factor, of new home building can be ex- companies which-have not estab* somewhat earlier and concluded U. S. Treasury revenues have not pected in the new year—roughly lished close working relationships that in physical volume construc¬ attained expected levels and defi- another million new housing with banks. ' Tight control over tion will be up about 2% and the cit spending is likely to occur in starts. But those who feel 1957 has costs and continuing attention to dollar volume will be up about the second half of 1958. been a year of high building ac- finances obviously are a "must" tion could be - and partments report that they expect a 5% increase in construction in is highways, 14%. shown 1956. Commerce look characteristics: and First, , Based upon a great deal of research which we and others have completed, it is our-judgment that no industry has a more promising general outlook than building, for state and local governments to in 1957 on research and de¬ carry on their pending and' new velopment, and 38% of the com¬ Thus, the figures can be mislead¬ panies said that they would in¬ projects. Abundant financing should be available to finance The million new houses started ing. But if we have a normal crease their expenditures for this over 1 million new housing starts (average) increase in the labor in 1957 may seem quite a drop purpose in the year ahead. This, force in 1958 of around 800 thou¬ in 1958, possibly 5% to 10% more from the 1,300.000 in 1955 and the plus the rising rate of expendi¬ in than in 1957. This, in turn, would sand, unemployment is likely to tures on research and 1,100,000 in 1956. Nevertheless, develop¬ one million new homes require an reach 4 to 5 million, and possibly ment in recent years, will spark help many other related industries more. The normal seasonal' rise to increase their sales. But a rise enormous volume of materials and new products and methods and, in unemployment, particularly in in unemployment, or a threat of labor and represent total expen¬ undoubtedly, will help to put a agriculture and construction, the floor under the decline in new it, could generate caution in such ditures in the neighborhood of $15 billion. When the huge and layoffs in manufacturing, trans¬ investment. Much equipment is heavy personal commitments. growing "fix-up" market is added, portation, mining and other in¬ obsolete and cost pressures will Government dustries, plus the growth in the together with the record volume encourage modernization. labor force can easily add up to The National Government ex¬ of most other types of construc¬ crease - i Troalnrv ?"lTe'fotw^ 1 c/ trends > suggestions some Second, we must carefully re¬ general; business. Most forecasters I should add, see _no appraise each customer to satisfy £ain a* ad and freQue.ntly a be- - ourselves which have growth pos¬ cline in general business. Trie sibilities and which do not. We Physical volume of business will must play to strength by being and wili further lift the values of existing This Here which emerge directly from earlier ob* servations on "interim ' period" are , beginning Nov. 14,; The individual thus is the key have been followed by open mar-jto an understanding of the "in-* ket operations designed to in- terim period" and to the solution ■ crease credit availability. If the of the problems which it raises. economy continues soft in the ;rt(ro ' . months ahead, it is safe to assume In 1958 we .no ,mare that the FED will relax further. ^an a very slight gam in. dollar high rate of invest¬ of . The cuts in the Federal Reserve of About is a possibility that before closes, expansionist forces will, again, exceed the contractive forces which are '- now clearly visible".''• ^ •* 'M: 1958 discount rates, a ahead, * which, still be from &ains m J eJ;?,r}on^r' Ihe.return to normal conditions obviously is The Monev Market A'gtotal drop of investment for all business is There the wage- benefited from, sub- .organizations of ment. levels to tended consum¬ case "Srs l'ormance ■p. the it level. 1956 the uncertainty a:nd as severe as in (unemployment be¬ least at Inside the" $1 billion in sales be disposed to repeat sales drop in the months ahead, this figure could be revised down In of at about L'reater With er further. that noted be to increase an 1957 in mining employment, both here and abroad, has held up remark¬ ably well, unemployment (4.6% of labor force in October, season¬ job If in 1958. Continued instalment debt to hold auto very be down 16% still While needs it But took few companies are as modern and up-to-date as they would like to be. We've passed through the greatest capi¬ tal-building boom in history. In 1950 about $21 billion were spent on new plant and equipment. In 1955 this had risen to $29 billion; in 1956, to $35 billion, and in 1957 to $37 billion. > and the economy instalment more be 1949 and 1954 recent in 1958 than in 1957. This suggests the possi¬ bility of a boost in sales, if no new disturbing factors develop. Meantime, however, coun¬ tries relying heavily on raw The McGraw-Hill survey of in¬ material exports are left with re¬ duced' importing ability. This tentions indicates that investment in new plant and equipment means lower world trade in 1958. Gold and dollar reserves among among manufacturers is likely to factor. ex¬ contracts will expire consumers Today, with the decline in sales bring production thousand ly to psy¬ price spiral shows, serious signs of recurring. ;... *'■''" In the 1949 and 1954 recessions, disappointing. Because of the sales peak in 1955, more than most industries have excess capac¬ ity, although certain to do so, unless what 900 v While the 1958 recession is like* of straint program, the monetary au- help prevent any inajor collapse. thorities are now ju a position to Many of the essential readjust¬ relax this restraintand are almost ments have already been made. reaction has been some¬ consumer Other and Construction fact that prices have been moving down does sug¬ The cases. Equipment Plant, rals, has outstripped demand and there is no early prospect of any although imports, its and supply money individuals. and further prolonged major de- tween 5% and 6%), the basic clines, this could help restore in- forces making for economic exr vestor and consumer confidence, y. pansion in the long rUriVare" as Because we've had a credit re- strong as ever and are likely to - cluding of Because the improve the liquidity of business has the degree discounted the in no is uncertain. automobile' industry The market chological impact and if there are supplements to on income stock the contraction. pects to sell about the same num¬ ber of cars in 1958 as in 1957 in¬ October, 58% below October of a year earlier, Backlogs in October rial prices in many sectors of our were 3.7 months' output, as against economy and throughout the 7.7 months' a year ago. The work world, such prices have been un¬ week—another good barometerder downward pressure for some has been declining. In October, time. The sensitive index of com¬ it was lower than the average for modity prices is, today, lower than 1954—a recession year. Steel scrap prior to the Korean War boom— has declined in price by nearly at an eight-year low. Production 50% within a year. of raw materials, particularly been made to cut down farmers' that lieve funds more business and consumers, increase industry, two of them thought that they were too high, but leave hands of its ■ have risen and would shadowed the current general contraction in our economy. Stock prices ..will continue to rise and nearly 80% thought their in- fall. There is some reason to bein low (1947-49=100) in December, sustain production. Unfilled or¬ ventories were at a satisfactory 1956, and has not attained that ders have dropped nearly a billion level. level since. In October, it touched dollars per month. Such a trend, 142, and it is likely to fall further Agriculture and Automobiles if it continues, must lead to lay¬ in the next six months. Part of offs. Inventories are nearly $5 Agricultural production and inthe readjustments, thus, has al¬ billion above a year ago, mostly in comes are likely to change very ready been absorbed. factories. Some further decumu- little in the year ahead, relativeThe seeds of contraction ar.e al¬ lation in early 1958, with accom¬ ly neutral in nudging the econways sown in the previous boom. in either direction. Hog panying unemployment, is pos¬ omy Wage increases have exceeded sible, prices will be lower in the second 1 1 productivity improvements. Prices half of 1958. Whether Congress 147 . that thought inventories were too shipments month-by-month, and manufacturers have relied of Industrial Pro¬ touched a peak of Reserve Federal their in sales _ Onilook lot the Year 1958 into Thursday, January 2, 1958 . should become more serious, this stantial tax cuts. With the slim or could be a relatively weaker fac- doubtful balance in the Federal in the first, half of 1958, but this tor in the year ahead than has Treasury for fiscal 1958, many figure rose to about 50% for the been the case in most recent years.- government .officials are "warning that a tax cut is not probable in second half of 1958. About 29% ' ; 1958. However, if serious contrac¬ expect larger capital investments Conclusion in 1958; but nearly 45% expect a The stock market decline, oc- tion continues, a demand for a tax reduction. For every trade group curring after mid - 1957, fore- cut might be generated and this one-third About Continued from duction .. 1 (24J on have the the first half of 1958 local a expenditures heavy growth factor for both goods and services since the end of World War II. is generally expected that It these expenditures will increase in 1958 than in the comparable period of 1957. But 40% thought that the second and constituted at - thf. the late of ^ $2.5 to $3 winnn. billion, however, in a number of states, half of 1958 would be better than revenues the second half of 1957. than have been less buoyant expectedi If the recession and Profit opportunity will prospects for 1958 encouragin& for no shrinkage in this huge n.eW and "fix-up market is anticipated. ' You see, during the "interim period" the outlook is largely a . matter of how each one of us about it. feels \ Well, what steps murt we take immediately to insure satisfactory .; during the "interim period." . The sales year and ahead is ! V in which we must "prospect for profit." I'm convinced that there' are many - one profit nuggets just'be¬ neath the surface in the rich kets time to cari' serve. we - locate then If we these will mar¬ take nuggets',- w6 dig swiftly- and deeply get them.; Personally,'' I'm bettingon good prospecting.■ to Vo Volume 187 Number 5704 . . . The Commercial and Financial Chronicle (25) 25 ping 86% state that there is no change and 6% report lower, composite prices. , Railroad Securities fact that production terialized Atlantic Coast Line Railroad Earnings of Atlantic Coast Line Railroad, like most of the South¬ eastern carriers, have held up better than country for as the the first 11 Line plays a large part in its earnings picture. It owns 35% of the the income for this with the the full St. 1956 period $4.99 a 1955 period. share $12,345,000 in the For month Coast have at appears last 1955. A similar amount year. paid was in 1956. Other income of the Coast many re- Reductions in working forces, and, in some cases, less overtime work are Not weeks for all em- reported for Decern- since mid-1949 many indicated lower. have so With employment as appears 9.92,573 and special deposits, $946,685v at the end of October, 1956. gloomier Net current assets (current assets less current liabilities) at the end of the period amounted to $28,109,546 against $26,447,679 at the end of the 1956 period. The railroad is serving The ter¬ a latter is of great importance. In the first place, manufactured products move at a high freight rate and in the it second dominated help by fruits and vegetables. The road also is participating in the heavy move¬ ment of phosphate rock which is of importance from a revenue standpoint. required to report. picpart- retailers prevented signifi- ai?even littio mnro little more a a the part of buyers than on Forward buying of iw<= items, MRo supplies, MRO ennnH., capital equipment are all re¬ on The few tend do shorter-term a who so strikes be which better than their tempers 1957. Most are willing to mainly because required lead time items they enthusiasm second-half is I'T- are relatively down Purchasing the eral executives downward business predict drift will in gen¬ buying n«" hge«™ up can -a On the side items list price, produce price + are: down and side electrical » are: tin, scrap, ^ Corrugated cotton, some equipment and borax. Copper crude rub- continue 18% the There is little strength D. Johnson of S. — Atkinson and Bank Company, Building. With Foster & Marshall agents, NAPA to reduce inventories and of lower Committee, quoted prices to meet competition Marshall without Business whose comprise Survey Chairman Ogden, troit is Chester Vice-President, Edison Mich., will the the say be The Company, F. De¬ Detroit, Recent cutbacks first six months schedules than worse the similar employment, have in resulted as well in as they by many as cloud¬ ing the picture for the second six months. cautious about their forward Most members strikes them for a believe Viewing whole, as Committee major some This leads the be year as worse. brisk retail business sales, the situation is since January, 1954. 40% say their new order position is unchanged and 17% better. Production is also with 45% showing reduc¬ Buying Production becoming are they operating a are Again, in December, no items to raise prices without corresponding reductions a result, only 14% of reporting members say that, over¬ all, they are having to pay more in costs. As items Dean % Reporting: HO <; Mos. 90 Days Days Materials 13 34 38 13 29 40 23 7 14 5 9 23 to 1 Yr. rf been ~ Witter , & t-, a/r Gary E. Mar- added to the staff Co., Patterson . „ . . 1" 33 38 43 23 *5 Capital Expenditures '11 4 14 21 lo D Company, 160 Montgomery Street. ,,ic «... values and his counsel unon Qualified and Able assembling of this excellent portfolio of tax-free bonds was his "yes" when this bond man would', call him business and make suggestion, a In fact, several times he told him, "go ahead and do it, I'll leave it to you." On one or two occasions the buyer did call and ask whether not he should buy certain bonds and both on occasions given the facts and from he was dissuaded was it. Complete the Job But the job not completed was witFrnv^riend* he kicked'uo^the j£iePbone mid gave him the name called^his friend at the bank. He of one of his clients who was looking for a new banking connection and he was referring him to the officer for an introduction the proper the who man account. He should also men- tioned that he was mailing him a 0<?Py oi the portfolio and the com- with a relatively rapidly growing commercial bank and, because of his ability to help the officer in Ple*+ed investment list of the vestor whom the bank officer had f, +v?inCL ?e ?lf° veeT told by the banker that the client charee was ver^ wel1 Pleased with and of the bond denartment manage the investment bond port- f0li°' he Tf"ld at, individual ^.es receive recommendations of in- + a good Job well done. Some Good Rules to Follow T, • . . ,, , , Kn°w your business soThat people Yfy resPy°u anci bave contelephone call from fidence in your recommenda- vestors who also wished to invest, in some tax-exempt securities. One day he bad a the bank officer and he mar* had and man let so us Be When job it put it down marize your time but instead he told to wait for attractive op- portunities. During the past six months a sum of approximately $"0,000 was invested in various bonds ranging on paper, sum¬ write letter a to client. give him a pat the on back too. neophyte investor called oil our friend, he was willing to invest his entire available one it and If possible the at your . from there. Six Months to Invest $170,000 take When you have completed a good secu¬ take and ... bond a conscientious time do a real job for your clients when you receive referrals,, ' <■ v > that and bought never lions. told was visit from a the bank's client of in over to this municipal exThe bank's high regard anc! unqualified taken care recommendation had of that. Yet, every posopportunity to obtain the |3est values, the highest return, the most security1, the proper ma¬ stbie for this man. i< with net a of better than 4% and the bonds in the also was un¬ this conscientious He finally wound up portfolio return account by shown current tax-free portfolio had increased an market value Joins cost over average as the market. DENVER, Colo. —Channing F. of joined the staff Peters, Writer & Christensen, Inc., Sweet 724 has Seventeenth Street. The other day when I the me lected. list of He had bonds he them had W. JUNCTION, Colo. typed The total amount invested Woodruff is with Harry Peters, 411 Main Street. now with the Street. Crouch Illinois Mid out date is Conti- Co., 676 St. Clair was tal- Red and also the annual return in dollars. With Illinois Mid Continent 111.—Lee se- purchased, name of issue, amount (par value), maturity, interest coupon, annual return in dollars. Harry W. Peters GRAND Frank J. in was this bond man's office he showed with the following headings: With re¬ eas¬ ier monetary policies have re¬ cently favorably affected the bond Peters, Writer (Special to The Financial Chronicle) - or open My friend about whom I am relating this little story had done good job." a All that the investor contributed to Radiation Comes to tlie sults of the Federal Reserve's nent Investment 50 nf of credit for to the bank the FRANCISCO, Cal.—Harold (Special to Trrr Financial Chronicle) 6 buver relies bond /' (Special to The Financial Chronicle) CHICAGO, 26 tl turities November— Production Materials MRO Supplies 1 Waiie:p jne buyerrelies upon his counsel dertaken 2 49 often his business — him kno^edse me, "It never does any harm, give the other man some of the ,T ... , „ . „ Z,0"1' who made the referral that you have accomplished some satis- factorv business because of his confidence and friendship. Try and reciprocate by him some clients too! sending ■««««»« , It looked very impressive when set up this way. Along with this tabulated list he sent a letter to the client. In it he told him that he thought it was one of the best lists of" tax-free bonds that he had also seen in many a day and he remarked congratulate that the he wished investor for to his • , • . (Special to The Financial Chronicle) Days tn thing E. F. Hutton Adds they buy. A whop- Supplies Capital Expenditures has Building. Policy to welcomed *s POI pert. is by the general soft order position. In many instances, prices are being cut to meet competition the r FRESNO, Calif. checked for & Bant L. Hardwick has become affiliated with E. F. Hutton & the part of. many of and professional investors are quick to notice whether or not a salesman has the facts and knows bis subject. If he is a top bond ex- tax-exempt pdt,catrt sella SAN Committee members report that suppliers Foster National With Dean Witter are Commodity Prices their S. definitely in short supply. on with now U (Special to The Financial Chronicle) shorter-term basis. on is com¬ mitments and Mouth MRO even more specu- Banks, intrust officers, to to amounts of $10,000 to $15,000: The investor was willing to turn every¬ oi Buyers Hand , December Hudson that pro¬ the desire gloomy. The 43% reporting poorer new orders bookings this month is the highest number so reporting down, so a 1957, 28% better, 42% the 30% and Despite d-half s e c o n inventories in line with current are compared to believe it will current - temper their enthusiasm pronounced pickup. same, the inevitable. are to of cut S. „JlutUru new duction. cited to PORTLAND, Oreg.—Wilberfe ^ lower a ties drive among stocks. common surance companies, was production period in 1957, 40% tl^e same, and only 20% better. Labor uncertain¬ are (Special to The Financial Chronicle) porting members tell of price cuts corresponding reductions in manufacturing costs. lative fund Buildintr who closer degree than rities only in com¬ the re¬ of department, before in his life. The recoatfmendation from the bank official was Raymond to Tell TIMING of these purchases. When I expressed surprise at this he said has been added to the National modity Many as Here you must know values; also you can determine values to a due to his confidence in the (Special to The Financial Chronicle) PORTLAND, Oreg. through the first half of 1958. In analyzing 1958, 40% of purchasing prices. of the investment business such the tax exempt bond this Atkinson Co. Adds and same, friend of a It pays off when you know your subject, and especially in segment one supply: Nothing. situation. better a by that he would receive gasoline. short staff 37% tions, me *s both a good. salesman and qualified expert in his field, new lew in paper, U. that to a some Changes ;T"7 reported careful certain on Commodity Although In pick-up. a mine who has spent many years in the municipal bond business and ex¬ it buy. Specific ber anticipate major for a significant told was basis. Business Outlook not piece deals with ,. the Seventy-two percent of purchasing agents surveyed believe will It previously. nmdi.rtmn production and On the 1958 This week's sales story that has more than one good idea for the investment salesman that may wish to use them, pert it is readily discerned and he . There seems to ho lneie ceenr? to be caution lead, steel Purchasing Agents Survey 1958 by have been the cant factor that eventually tends to iron out the seasonal movement of now time ported ritory growing in population and industrialization. we Any Harm Another Man He's Good." also with cash of $10,165,226, temporary cash investments $3,* It Never Does who Fmninvnioni employment find 49% reporting their ture as worse. Christmas traffic Last year the road paid divi¬ dends of $2 a share or about 50% of indicated net income for the so 1954 only 6V saying it is better, and 45% noting no change, compares 165,000 of com¬ time of temporary cash in¬ vestments were $6,016,912 and special deposits, $1,221,814. This of way and structures expenses for the 11 months amounted to $22,- months last The in- $11,544,775, to $30,554,000 in 1955. Transportation expenses were $58,997,000 as com¬ pared with $59,127,000 in the 1956 period and $53,989,000 in the like the was the ported reductions. ber. a and balance, slight increases. ventory adjustment era ployees, continues in By JOHN DUTTON a reductions. change, /o "other was $8,818,000 and in the period, it was $7,624,000. further ^percent report lower no 42 months $8,077,000, almost railway operating ma¬ fortable cash and current position. On Oct. 31, 1957, cash totaled of against $26,586,000 in the 1956 period and $26,229,000 in the comparable 1955 period. Main¬ tenance of equipment expenses for the period totaled $32,567,000 against $33,125,000 in 1956 and stocKS, shorter Coast Line or expenses under better con¬ than formerly. Maintenance trol to net 11 not purchasing scrutinize, again, effected Forty-one 1955 _ Line income, the has caused to many have income November, net aggregated; $700,000 against $833,000 in the 1956 month and $1,308,000 in the like 1955 month. net for anticipated their purchased material inven¬ tory position. As a result, income. In the 1956 months, other comparable the total equalling share in the like and the amounted charges to $4.05 a share on 2,470,281 shares outstanding. This compared with net income of $11,a latter a good long-term earnings and dividends. income" and $4.45 & have of Of Coast Line reported a net income of $10,023,000 equal after taxes the rigfct to merge Nashville, Chattanooga & Railway. Both of these record 1957, or Louisville and Louis roads year should exceed $4 a common share. For the first 11 months of 011,000 the of months However, in December rail ,traffic began to decline, but even net of true year. so stock Nashville Railroad has obtained the the pickup has executives was whole. This a of average Securities Salesman's Corner Inventories The ~y ■ 26 Coast Exchange Member Agnew, Chairman of the H. of Pacific Coast Stock Ex¬ Board change has tion H. of the elec¬ announced Freeland to Theodore membership in the San Francisco Division of Pacific Coast Stock Exchange, effective Jan. 1, Freeland Mr. member is 1958. officer and an firm American of Corporation Securities York of New City. Loeb, Rhoades to Admit John L. Loeb, Jr. on cents 42 Carl M. Loeb, Wall Street, members of the Rhoades & Co., York City, New New York Stock an hour over and Industry above the basic wagte boosts and im¬ this ; Russian output in 1957'was equal to one-half that of the United States and showed an increase, while that of the United decreased. States While T * . . States production United 1957 in was only 80% of its proved fringe benefits covered in the labor contracts. Continuing, it adds that close observers of the steel indus¬ try look for a price boost of $5-$6 per ton at mid-year. It could be more if a cost-of-living pay boost as substantial as the latest tons much the United States production declined to 113,000,000 ingots arid castings, it is the third best year for the country. The record was 1955's 117,000,OOG tons. The second best year was 1956, with 115,000,000 tons. Current United States production isa much below the year's Mills were operating at slightly more than 50% of New orders were being offset by cancellations and requests for holdups on delivery. Customers were asking and average. In the week ended Dec. 29, output was about 60% of capacity, the lowest pace of the year. It reflects the slow demand for steel and the Christmas holiday. The present rate of output getting prompt delivery on all products with the exception of linepipe. EVan linepipe order books were beginning to show occasional openings. yields 1,536,000 net tons of steel for ingots and castings. District production rates were down in all but three areas. The rate at Birmingham,x 72.5% of capacity,, was 1.5 points over that of the preceding week. Rates at Detroit (80.5%) and the Far West (77%) were unchanged. Prices were steady as the year neared a close. "Steel's" price is one next July. necessary Meanwhile, the steel market entered the New Year on downbeat. capacity. ''The Iron Age" reports the news from Detroit is becoming The auto companies have cut back pro¬ off thousands of workers for periods up to two instead of better. duction and laid weeks. For steel, this means that automotive steel inventories will be that much fatter as the New Year begins. The feeling is that the automakers will reschedule more steel deliveries for eventually will affect the ordering pattern of automotive suppliers. steel It is estimated that 15% some to 25% of automotive Although steel originally scheduled for January delivery has been rescheduled. One steel sales office says that new orders for February delivery are off about 50% due to the shuffling of January steel into February. A steel for of composite on finished steel remained at $145.42 a net ton and price composite on steelmaking scrap held at $33.17 a gross ton. its the next two months and the chain reaction Exchange. Thursday, January 2, 1958 present capacity, it is believed that Russia is producing as as its capacity will permit. V Jan. 1 will limited partnership . tons/compared with 133,500,000 at the beginning of 000,000 page The State of Trade and 12 worse be admitted to in from . year. stockholder of the corpo¬ voting rate Continued FRANCISCO, Calif.—Wil¬ SAN liam Chronicle'. The Commercial and Financial (26) American The Iron and Steel Institute announced operating. rate of steel companies, having 96.1% making capacity for the entire industry, will be an that the of the steel- average of 59.0% of capacity for the week beginning Dec. 30, 1957 equivalent to 1,510.000 tons of ingot and steel for castings, as compared with actual rate of 53.4% of capacity, and 1,366,000 tons a week ago. ail A slight increase steel output is looked for this week fol¬ m lowing the sharp decline during the Christmas week to the lowest steel sales manager in Detroit puts it this way: "I'm glad I'm not a commission man. Some of them have had the New Year point for any non-strike period since mid-1949. ham based snatched right out of the oven in the last week." Steel output this week, as it was last week, will be approxi¬ mately 1,400,000 ingot tons. Except for periods of strike, it's the period in steel in more than eight years. Pro¬ duction is expected to move up slightly in the weeks ahead, "The Iron Age" concludes. lowest production industry's ingot production rate for the weeks in 1957 The For the duction is annual capacity of 133,495,150 tons as of Jan. 1, 1957. on like week month a 1,831,000 tons. A year the rate ago ago was 71.5% and pro¬ the actual weekly production placed at 2,490,000 tons or 97.3%. was The operating rate is not higher than capacity in 1956. based on an annual because comparable capacity is The percentage figures for 1956 are as of Jan. 1, 1956. capacity of 123,363,090 tons Electric week %f you're feeling very weU as kilowatt consumption climbed to record levels last Christmas lights were turned on throughout the coun¬ try and Southern states, hit by a cold wave, resorted to electric heating. Power output rose to 12,570,000,000 kilowatt hours, the Edison Electric Institute reported. This was 14,000,000 kwh. above the previous high attained during the week ended the In last Jan. 19. automotive industry last week, extended shutdowns in auto assembly killed the chances of establishing 1957 as the third-best year for United States passenger car production, "Ward's Automotive Reports" declared on Friday last. "Ward's" said auto output was pared 43% last week as most General Motors Corp. and Ford Division plants closed at noon Tuesday through Wednesday for the Christmas holiday; other on Monday for longer periods, including Chrysler Corp. for two weeks and Mercury for one week. The statistical agency estimated production at 79.965 cars and 12,016 trucks last week compared with 140,447 and 22,342 in the preceding week. The safne week last year netted 99,577 car and producers went down 12,505 truck completions. or if you're feeling queerty) "Ward's" placed the entire 1957 passenger car production 6,117,000 units, just short of the industry's third-best annual volume of 6,134,534 established in 1953. Electric Output Eased in Week The a service predicted a decline to about 5,300,000 car 1958. January-March production schedules have sharply.' freight for the week ended Dec. 21, 2.1 % below the preceding week, - the % 5 Loadings for the week ended Bsc. 2i, 1957, totaled 590,343 cars, a decrease of 108,081 cars, or 15.5% below the correspond¬ ing 1956 week and a decrease of 77,136 cars, or 11.6% below the corresponding week in 1955. • v%- • •» Loadings 1957, were Association that since 1949 United States production has yet to increase two years in not destined to deviate from that pattern. a revenue cars passenger row and 1958 car is or American Railroads reports. • Declined 43% in Christmas Week Due to Plant Closings Passenger car production for the latest week ended Dec. 27, 43% 1957, according to "Ward's Automotive Reports," declined by the level of the below Last . preceding period as a result o? extended j auto assembly plants. week's car output totaled shutdowns by 1957-58 output decline from the 6,000,000 to 5,000,000-unit range finds historical precedence in the indus¬ try's two other 6,000,000-unit years—in 1950-51 when volume reached 6,674,933 then dropped to 5,338,820 and in 1953-54, when it attained 6,134,534, then slipped to 5,509,550. said of ... slashed the "Ward's" of 12,693 Automotive Output The statistical completions in been energy Loadings Decreased 2,1% Under Preceding Week Car 5.4% increase The projected Ended Dec. 21 distributed by the electric light and power industry for the week ended Saturday, Dec. 21, 1957, was estimated at 12,412,000,000 kwh., according to the Edison Electric Institute. Output the past week was lower than in the preceding period. For the week ended Dec. 21 output fell 158,000,000 kwh." be¬ low that of the previous week and advanced 185,000,000 kwh. or I.5% above that of the comparable 1956 week and by 798,000,000 kwh. above that of the week ended Dec. 24, 1955. at The "Ward's" 1957 output estimate represents over entire 1956 with its 5,801,864 completions., electric of amount 79;965 units and compared (revised) in the previous week. The past week's production total of cars and trucks amounted to 91,981 units, or a decrease of 70,808 units below vthat of the preceding week's output, states "Ward's." \ ? v%] ; Last week's car output; declined below that of the previous week by 60,482 cars, while truck output dropped by 10,328 vehicles during the week. In the corresponding week last year 99,577 cars and 12,505 trucks were assembled. Last week the agency reported there were 12,016 trucks made in the United States. This compared with 22,342 in the previous week and 12,505 a year ago. Canadian output last week was placed at 3,300 cars and 515 trucks. In the previous week Dominion plants built 7,171 cars and 1,192 trucks and for the comparable 1956 week 6,128 cars and 1,066 trucks. with 140,447 . ... fefjtfiUving you want most] Personal savings advanced in the third quarter to $4,700,000,000, the highest level for the period since 1952, raising the total for the first nine months to $13,800,000,000 from $10,700,000,000 in the like period a year ago, the Securities and Exchange Com¬ mission stated. The latest nine-month total was last surpassed by the $29,300,000,000 figure in 1945 when war-time saving bond purchases swelled the total. Shipments Fell 4.8% Below Output in Week Lumber Steel Operations Set to Yield 59.0% of Ingot Capacity In New Year's Day Week The world produced more steel in 1957 than ever before, even though the United States, the largest single producer, made less than it did last year. The report is made by "Steel," the weekly magazine of metalworking. World output totaled 322,139,400 net tons and (have a checkup yearly) cancers can be cured if the 11,400,000-ton increase Free World detected in time. That's why it's important for you to have thorough checkup, including > a chest x-ray for men and orders turned out 240,251,400 tons in 1957, a 6,000,000-ton rise 234,267,459 tons in 1956. The Iron Curtain group made 79,-* 518,000 tons in 1957, a 5,200,000-ton gain over 74,363,520 tons in 1956. Other countries making less than 500,000 tons each pro¬ duced 2,370,000 tons in 1957, compared with 2,155,000 tons in 1956. pelvic examination for women, each and year*..no every matter how .well you may feel. The Iron Curtain countries produced 25% of the world's steel in 1957 and last year they accounted for 24%. \ w w tons, or of the Iron Curtain's output. Russian production has risen AMERICAN CANCER SOCIETY every year since 1944, when United States output that year was 89,600,000 tons. Production in the United States has fluctuated, but over-all it has risen. It now has a record capacity of around 141,- it was 8,960,000 tons. 3.1% below production. Unfilled orders amounted Production was 1.2% below; shipments 1.6% orders* were 3.2% below the previous week aiid stocks. new II.9% below the like week of 1956. Business Failures Show a Sharp Decline in Week Ended Dec. 26 Business failures dropped to 166 in the week ended Dec. 26, from 276 the week before and 174 in the like period of 1956, Dun '& Bradstreet, Inc., reports. Failures with liabilities of $5,000 or more 242 a week earlier and 153 a year ago, dipped to 142 from it further noted. $5,000 declined to 24 from 34 but held 2F of this size last year. Twenty-one of the failing had* liabilities in excess of $100,000 as against 18 in the Small casualties under above the concerns Russia produced 56,500,000 tons, or 71% of the Iron Curtain Last year, Russia accounted for 53,471,000 total in 1957. 72% of below and . a were 27% to about evenly divided between countries and the Iron Curtain area. The Free over ~ 21, National was World a Dec. third consecutive year of record world noted. The Many of steel for ingots castings, compared: with last year's 310,785,979 tons. It was output, the magazine the Ended Dec. 21 of 317 reporting mills in the week ended 1957, were 4.8% below production, according to the Lumber Trade Barometer. In the same period, new Lumber shipments previous week. " industry and trade groups except wholesaling had fewer casualties in the holiday week. The total among retailers dropped All to 77 from 136, construction contractors to 20 from 47 and com¬ enterprises to 12 from 26. A milder manufacturing failures down to 36 from 47, while mercial service orlcrorl nn fn 91 frnrn 90 Mnre trnrie nnrl service dip brought wholesaling businesses failed . Volume 187 Number 5704 The Commercial and Financial Chronicle than a year ago, but manufacturing casualties were slightly lower than in the similar week of 1956 and construction casualties for All as of numerous the nine last year. as in major geographic regions reported declines. Failures in the New England, Middle Atlantic and South Central States down were casualties as moderately. However, less than half as improved. preceding week. sharp drop the week before. $6.12 on $6.j1 against 86.33 the corresoonding date, a year ago, of or 3.1%, * Higher in wholesale cost the past, week were wheat, lard, steers, hogs and lambs. On the down side were flour, corn, rye, cocoa and eggs. index represents the sum total of the price per pound of 31 raw foodstuffs and meats in general use and its chief function is to show the general trend of food prices, at the wholesale level. The In Latest Week : livestock offset . year sponding date year a a week .. declines previous and 300.89 the on 10 to corre¬ noticeably lower. There was . ; . ,. and prices for the of buying, resulting from the transit strike, responsible was sharp increase. 1957 the increased 12% above that of preceding week, Dec. 14, 1957 four weeks the For ended the like period last increase of 4% an In year. reported. was Dec. 21, 1957 a decrease of 2% was registered. For the period of Jan. 1, 1957 to Dec. 21, 1957 the index registered an increase of 2% above that of the corresponding were . period of 1956. Continued with on Wednesday of the indulgence—the least at¬ of the deadly sins — served to consumption in check, and investment in the fore. Those days are gone, but in the keep subterranean I J: do not for need predisposition toward these ques¬ that emo¬ But tional retail lead period ended of passenger —I to and East South-Central 0 to 4-3; West South Central —2 4-4; West North to +2 and Pacific States —<1 to 0%. Increased offset sluggish trade total sales of women's buying of women's fashion cloth coats, suits'" and dresses, apparel moderately over those of a boosting year ago. Interest in men's suits and overcoats was close to that of earlier. Sales of children's clothing advanced a week substantially. Furniture stores week in sales of reported moderate, gains from the previous goods and occasional tables and chairs, while interest in bedding and upholstered chairs lagged. Although the call for phonographs, portable radios and television sets improved,; tne buying of major appliances was sluggish. There was an upsuige in purchases of linens and' volume, slightly exceeded that of a year ago. volume in not only statements, make accurate of future events dif¬ butter, cheese and eggs was close to that of a week earlier. Grocers reported slight gains in the call for frozen foods and fresh produce. ... The usual decline in wholesale buying of apparel occurred in the holiday week. There were some scattered last-minute re-orders has attempted economy as thoroughly as pos¬ sible, and I would like to discuss that study with you. From, this believe, study there are, I number of implications a relevant to the European develop¬ ment of hire-purchase, which I would also like to discuss The Federal In Reserve United the briefly. Study States In hitting the high spots of thjs study in the U. S., there are three to be asked. major questions First, why was it undertaken? Secondly, what does it say? . And thirdly, what is the significance of the study for public policy? Why it undertaken I have was touched on a briefly. long time There has underly¬ an ing uneasiness about the growth of credit consumer precipitated into which action was by the 1955, in which we had great burst of credit growth. events a of The was it study, an should enormous Reserve be said, job for the Fed¬ Board. little over turned In out year—the six-volume a nation, with commendable jectivity and astuteness. • geophysical though these year. num- "bers may look from, say, a Danish viewpoint, they were fairly con¬ sonant wjtth the general develop¬ ment of tivity. American Thus, to of overall economic use one ac¬ measure economic activity, dis¬ income which is of course simply income after taxes, had been some $237 billion in 1952, and is currently just over $300 billion, annual rate. Never¬ theless, consumer debt growth posable has personal of the ahead run come, rise in in¬ outstanding debt repre¬ some 11.5% of disposable as sented income in 1952, compared to 14.3% at the end of 1956. In terms of the burden of debt there was unnerving rise. too, repayment slight, but S. after-tax and about 5% Just a 1952, currently. word economists set out to find whether would be strengthened by a bat¬ tery of specific regulations relat¬ ing to instalment credit and the institutions which purvey it. staff itself reached they as about what the figures comprise, before some analysis of them is at¬ tempted. Consumer credit data, which I have been quoting, are The conclusions, the were Federal Governors Reserve issued Board various of state¬ ments culminating in its published position in the June, 1957 Federal Reserve Bulletin. that it felt no instalment The Board said special regulation credit needed was desirable. Therefore, rect the controls demic debt no not supposed to, but with the publication of the study of in really was monetary policy should function through a general mechanism, as it had done, operating! on the re¬ serve position of commercial banks, or whether monetary policy or income organized was simple and I think relevant for many European countries. Specifically, the Federal Reserve not debt repayment took 4.2% of total U. study Thus, automobile a ob¬ The question around which the very eco¬ the or Astronomical every con¬ ceivable facet of the question and into the very social fabric of the whether this had to do with nomics record one and question of becomes now irrelevant. di¬ aca¬ But the study itself throws so much light many parts of the instalment credit market, and on its relation on to the general second on To underestimate the force revolution its because goal is one the does surest to make disastrous estimates the future. In many ways, striking economic there have been similarities in certain developments in the U. S. and Europe in recent years, in the midst of the well-known differences One area between velopment, the econo¬ regions. of similarity persistent, is the de¬ large and worrisome to many, of instalment credit use, and the consequent in¬ repayment. and smaller sector in¬ cludes case Housewives noticeably stepped upi;their purchases of canned goods, fresh meat, poultry, candy and baked goods during the week, while will is worse, favor way • accessories in warn foolish mies of the two consumer eral Reserve Board to study the question of consumer credit in relation to the American for future a not . according to spot estimates collected by 'Dun & Bradstreet, Inc. Regional estimates varied from the comparable 1956 levels by the following percentages: Middle Atlantic-States 4-6 to 4-10%; 'New England'and South Atlantic 4-5- to 4-9;:Mountain 4-2 to 4-6; Central to debtedness it brings to consumers cars,-major appliances and television '> East North: Central in credit and monetary situation, that it continues to de¬ prepared by the Federal Reserve serve sober analysis, Board in the U. S. and consist of It would obviously be cavalier debt in two broad categories: the in the extreme to attempt to con¬ first, instalment credit, includes tain in a few paragraphs the total debt for automobiles, "other con¬ findings of no les3 than a score of sumer durables," meaning refrig¬ economists, all highly competent. eration, washing machines, etc., Nevertheless, and with this caveat personal cash loans, and loans for firmly in mind, a look at the high¬ home improvements. This sector lights of the findings and of the comprises about 75% of thfcj. total open questions which remain is of consumer credit, currently over relevant. $31 billion. Of this amount, First, as to the organization of nearly half—about $15 billion—is the Study: the six-wolume report for automobiles, and another falls into four parts. Fart I, Vol¬ quarter—or $8 billion—for other umes I and II, are in a sense the consumer durable goods. The meat of the Study. They present ficult. lagged ... -u;: The total dollar volume'of retaih trade iri the period cr.ded on Wednesday of last week was 2 Mta 6%-'• higher than a year ago, . do some What but - I involvement to Purchases of sets mean It is great. Nor do I mean to say there is a "correct" emotional year ago. new to disparage the continuing investment. forecasting a 0 u r minds, the prejudice remains, and basically colors our views. last week and-volume moderately exceeded' Shoppers were primarily interested in traditional gifts, glassware, toys, food specialties and some lines of apparel. that of of recesses that I believe tions. shopping boosted earlier in — earlier In measured. tractive Moderately Above Year Ago week utility of consumption purpose be beg¬ class distinctions or quasireligious beliefs, which equated thrift with God and consumption Trade Volume Rose Sharply in Past Week Over Preceding a consumption days, year ago. in Christmas the — Cotton last-minute upsurge about ging off by claiming that cannot Exchange estimated, exports of cotton staple in the week ended on Tuesday, Dee. 24, were 141,000 bales as compared with 76,000 bales in the prior week and 236,000 bales in the comparable 1956 rweek. Exports for the season through Dec. 17 totaled about 1,926,000 bales compared with 2,583,000 bales A practically nothing say can sensible during the first 12 days of December was estimated at 1,166,000 bales, a record for the period.7 Domestic mills consumed about 656,000 bales of cotton staple during the four weeks ended Nov. 30. Consumption for the season through that date, amounted to about 2,802,000 bales compared with 3,108,tf00 bales in the similar period a year ago. 1 \ ' volume sharply over that of can ratios, in pork pricesVas purchases expanded considerably. The buying of lambs continued at a high level and prices held unchanged. Following the" rise'in prices on hogs and vegetable oils, lard futures prices moved forward substantially. Cotton trading on the. New York'Cotton Exchange expanded moderately last week and futures prices'rose significantly. Accord¬ ing, to the United States Bureau of .the.'Census, cotton ginnings and discussion rise, the U. S. Gov¬ specificaHy the Fed¬ ernment and staff 16 page develop curves using the calculus for determining op¬ timum investment and output slightly over those of a week earlier. Trading in beef improved, resulting in moderately higher prices. Steer receipts in Chicago fell below those of the prior week. A Week from Of Consumer Credit Abroad which Most livestock prices rose a heated which it gave eral Prospects for Increased Use close to that of the preceding Week? ' ~; Although wholesale volume in rice, sagged somewhat, prices was a slight rise in cocoa duving the week. Buyers were waiting for reports on the estimate of the Ghana cocoa crop. remained at week-earlier levels. There futures prices and trading improved The New York rapid and large consumer debt study, which went into was pay¬ S., and of the uncertain¬ and time—a Following the drop in wheat prices,. flour prices declined slightly in the week. Although sugar, trading lagged, futures prices were unchanged from a week earlier. 'Coffee prices were steady, but) officials expect them to rise in the near;future. Coffee trading occurred U. ties billion, fixed , dwindled. rise In view of the development of the $80 course, 27 * been for drop in trading in corn and futures prices slipped somewhat. Chicago wholesalers reported appreciable declines in prices on oats, rye and soybeans, as buyers' interest noticeable are week According to the Federal Reserve Board's index, department store sales in New York City for the weekly period ended Dec. 21, moderate a Board's index 15% above the level of the like period a year ago. observers pointed out that a last-minute Christmas for the trading and futures prices fell moderately. Wheat production was estimated at about 947,000,000 bushels, ..noticeably higher than slackened Reserve Trade rush % Larger than anticipated estimates by the Government on final production of 1957 grains resulted in slight decreases in most grain Transactions slightly below that was Retail trade sales volume in New York the past week climbed ago. private trade estimates. some Volume exceed of ago. Federal flour and butter last compared with 277.85 the* of ended Dec. 21, 1957 increased 4% above the like period last year. In the preced¬ ing week, Dec. 14, 1957 an increase of 2% (revised) was reported. For the four wqeks ended Dec. 21, 1957 a decline of 3% was re¬ ported. For the period Jan. 1, 1957 to Dec. 21, 1957 an increase of 1% was registered above that of 1956. in most grains, week, resulting in a slight rise in the general commodity level. The daily wholesale commodity price index, compiled by Dun & Bradstreet, Inc., stood at 278.44 on Dec. 23, • a the Wholesale Commodity Price Index Climbed Slightly on that buying dropped noticeably the past week, with the sharpest declines in canned goods, flour, rice and sugar. In¬ terest in fresh meat, poultry and dairy products continued at the level of the prior week. Department store sales on a country-wide basis as taken from oats, barley, butter, prices equaled Wholesale food .. Higher carpet wool laundry equipment dipped again. week earlier. a rise of a moderately, but interest in worsted for presently which ments.. Trading" in major markets reported moderate gains in sales of draperies, floor coverings and linens during the week, resulting in slight year-to-year gains. Interest in furniture lagged and purchases of refrigerators, deep freeze units and automatic Slightly in Latest Week The index lor Dec. 24 registered It compared with call the week. orders. The wholesale food price index compiled by Dun & Bradstreet, a The Wholesalers in Wholesale Food Price Index Eased slackened during Despite some scattered orders for print cloths, over-all trading in cotton gray goods was sluggish. Interest in industrial fabrics and man-made fibers lagged. Mid-Atlantic dyers and finishers reported a continued decline in incoming appeared in five regions. Inc., fell slightly last week following transactions yarns from levels whereas declines women's fashion accessories and furnishings, but noticeably below that of a week earlier. Bookings women's Spring merchandise lagged considerably. woolens and worsteds dipped many ago occurred in the Pacific States, down to 78, in the East North Central, 20 as against 41 and the West North Central, off to 6 from 1% Mixed trends from 1956 prevailed and totals in four regions equalled or exceeded Jasi year's 32 and was Textile week a men's volume were only half (27) Growth of Instalment Debt In the U. S. the rise in private debt was considerable, with total outstanding consumer debt vir¬ tually doubling between 1951 and the present. In amounts, this meant a rise in outstanding con¬ sumer credit debt from about $21 billion at the beginning of 1951 to some $42 billion now. A friend visiting from Denmark to whom I explained these data, and their derivation, whimsically asked department store charge account credit, service credit meaning doctor's bills, etc., and a final and rather extraneous cate¬ called single payment loans, repayable in one lump sum, which is used for every conceiv¬ able purpose including stock ex¬ change speculation. In total this gory "non-instalment credit" sector has over debt mortgage category debt are figures, con¬ home which systematic study supplements technical inpluding made by 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 of the pattern instalment nomic the $9 billion outstanding. Notably excluded from the sumer the burden part credit instalment of in of played and and use the of eco¬ instalment debt; by economic fluctuations, process; consumer credit instalment growth several Continued on and other page 28 - 28 The Commercial and Financial Chronicle (28) Continued jrom page University 27 Michigan, of which most students great spend significant of burden, the of .some statistical analysis of major points raised and, in addition, discusses the rise instalment of credit statutory alternative some proaches abroad, and ap¬ A 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 on Part of peacetime credit. instalment of regulation This reviewed be can word—No. Part in a volume, printed in June, 1957, presents the results of of national field a 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 no in 1939. into the instalment of payment to was 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 a 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¬ to V' sixth the IV, of 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 on base. termed a collateralized That is, credit was thought to sound be may be long so as to the total for this This dent. riod growth readily evi¬ uniquely the was the of are development pe¬ the 1929, the year of most raiHd'decline of employment and other variables of 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 a 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. of And, inco as 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. v „ / 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 to 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 on instalment credit. ' The most plaining of this instalment eralization unrelenting decades tion of obvious factor rapid more 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 of determine terms quality of whether se per and, if credit danger are to 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 to $7 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 is the concern burden of debt the economy. worthy of on about debtors and the ■used older data compiled by Survey- Research Center of repaid fully. now At 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 a clear very lor the fact that general con¬ trols do have an important effect the on funds amount and available companies. to He rather of sources sales leaves amusing all used finance the trols its at the of general con¬ disposal, operating in authority should approach the One of 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 a imposed as service a charge instalment for trouble, in little amount result of bad to do so is 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 of finance companies. The state reg¬ ulations in effect preclude, at some point, the passing charges Let to the on that of interest This consumer. discharge and an The of debt consumer acquisition orderly life cycle of is 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 in S. the remember us case the soundness of. nowhere in 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 of 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 in to revival. Dur¬ be a 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. of be instalment putting spendable buying 13% to income against 11% in the last two years, and 7% in 1940." as 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 U. S. has the whole done on a low) Mr. keep but sharp not alternative the within credit of total level of reasonably a employment, that , con¬ with consonant fluctuations, percent Mills if the monetary that then authorities of ex¬ well, abnormally misjudgements. full is errors are inevitable for bank authority, the authority in the an cludes students some and should be al¬ normal (actually to date tremely lowed of 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 if clear, that to allocate wants credit of amount sumer the any to 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 is is • cycles, although it Like all credit, control ket to determine. families ment credit is not to act supply.v money omy are purveying level of into light is for the Federal to tions a the relation some monetary government a the prices of government bonds, and instalment credit/and the institu¬ of credit to economic fluctuations. throws of 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, no * 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 it yond its control/ For example,; in the inflation in the U. S. which the / ' credit sometimes the result of forces be¬ Reserve ;; has providing of Sometimes this has been ments not relevant to this discus¬ , has admirably, occasions two or 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. be of credit, inflate amount total neither to deflate as the there exists instalment credit rate of the1 as 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 II sovereignty, consumer provide slowed if not halted. omission of purpose companies to the r/arket have been and end mhney market, the march consumers. no assump¬ question pf credit clear implication the long^as well as the short acquire no consumer capital, or wealthy families which need His time. to 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 of on distribution of debt, the Study has April 11, 1957. the belief that ing re¬ the in 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. or 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 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 of million have as and auto to acquires capital assets. to yond of 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, go Sti^ty indicates that losses for the took stand worthy of study. individual's to of much over a bases items two or 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 do cases scattered some 40% repay income. their of more there may be re¬ . analysis not credit. Two National Bureau of 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¬ a 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 to consumer no 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 in strength with familiar.1 are These oata then, as now, . national that argues tends riods quidity excessive and as quality as pe¬ will instalment li¬ The Fed¬ of total control . outlined of under economic inflation. Reserve's eral credit well deteriorate to of 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. be our sides all hon¬ In esty I must say I do not think the relation automatic of level general the between in 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¬ a 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 to whether winds The this ques¬ on the In the German Germany, problem vated Situation is no 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 I from elsewhere most East which fully utilized. would expect problems other to Germany al¬ is now Consequently, Germany's future resemble countries those somewhat of more, although^ the impressive growth I do not credit consumer they cut and down they carry in incomes and in con¬ sumption/which has taken place, and which will tinue of to undoubtedly | take place. Granted just as easily in¬ type of expenditure. Is an immediate The of are intro¬ run the lived, ,, You temporarly euphoria cause losses throw caution away, ances^ etc., ijiq demands for con¬ like to ranh which or ' for thjase who what but is behavior sure this inexpert competitive pres¬ worse, puts other on lenders the do to 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 on 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 a for means companies' ranged as high must have 7% of out¬ losses 6 as smaller the of some or standings, to bring the average Losses of this magnitude can bankrupt a finance company or wipe out depositor's funds ex¬ up. mu • The twice about rate average sume. - . in mean a the type of consumption as well as a general increase in consumption. This shift is of course from sumer durable non-durable to 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 I dura¬ consumer In is clear some adhere to quality and Observations Europe on recognition to 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 a 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. I asked been to observations some the wants them. have cials justment which establish to of Some European charac¬ debt, wise and think the major problem fac¬ ing consumer on cultures as a* motor consumption, m total numbers look rapidity. at the fastest in m the Taking immediate the closer a 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 as con- consump- as 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 of pressure Reserve - consumer in periodic export markets. export, it is makes of sover¬ the of com¬ domestic consumption re¬ desir¬ able. ,\ „ . .. < I make to like would I it quite wonder if this is We 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 of only. the about relevant to an countries. outsider, By in that mean has successful, most countries .of Europe in at which, par¬ Germany, outstandingly I is the among I 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 is possible. natural dampen This even is sector created si¬ infla¬ use, and gerous of de¬ as politically dan¬ trying to reduce social or 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 as services cannot be spent on 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 et al. . 27%, 24% and then decreased 5% compared If to the year earlier for OEEC the the countries U. K. is as whole. a 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: as 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 at an increase automobile and an of 31%% consumption increase of 44%. these at I could total figures by groups of coun- more 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. 11 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 be 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 be used under the straight-line that there is absolute truth n0 perfect method in income to or 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 of measures be to rome law tax and prevalent fact in whether difj4rence the flexipractice. The different of methods, . reasonable business accounting involve they between FIFG or 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. is ft the can jt axiomatic capital recovered, the sooner be is more and undertaken it easy Thus, faster investment more likely a be to is to that believe I been intended to cover any new ground. Depreciation accounting is statements the to- add be 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 t. Europeans and obvious is 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* it Gei many next few years you Will catch up eral countries and discussed with afford were of of think I 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 of 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 ? of terion months two past grees of success. no The facilities for providing con¬ sumer credit vary greatly among remark Wn 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 by stalment criteria loans."2 all on the as circumstances economic terized high as of con¬ shift making an attempt to be able to provide adequate capital for this development, with varying de¬ use abso¬ be 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 of sible to choose what he will gener- better than these The Rise in Motor pos¬ one payments. use as f subsidized. of the surest invita¬ tions to losses is inadequate down with free as know collection conclude figures perhaps continued watching'. From 1 be - 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 be should sumer ways, • The be denied. will and is cited. I bles has been restricted in various credits consumer as banks. : be the by 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, of the have I „ these inflating, stationary otherwise. Not only will this is are that and reasons m. 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 I consumption liquor, tobacco, expenditures, may this crease when rise indicated in that order, to carry their debt. It is logical that without debt to as 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 an further in productive production as 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¬ in 29 I a 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 n w Sfriv ^ahrl wiliTmn ^ a.nd facilitate gen- are ElZl JotablP Thl IS nf k 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 So f 4.. decisions retirement on and re- placement of depreciable property are often made to depend, il- nanv & I' nients Ld f a 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^^ on 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 be as 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 be developed which will assist these backward more countries to is6ofejouree oh^tous^atTt great benefit countries that to the members My observations in criminatory in favor benefiting groups from cbance for reai abuse of it. those come and tax receipts. But tax The depreciation is also of importance arises from to us because of its influence on 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, on 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 on of depreciable property than was applied to the depreciation deduc- above. In the brief time available tions themselves. It is notable that I many of recently the made have not attempted to do more 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 . 0 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. 7. 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 on Proceeds —For advances to ★ 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. j 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. - >1 r ; ;; 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 of up (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 share , and For — warrant. one working capital. Price — Office — $20 per unit. 316 Johnston Underwriter—J. C. Wheat & Cop "'''Hp'*"/ Offerings—Expected this week.. ? ;p (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. • rP • ;,-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. , A' 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 of Bldg., Charlotte, N; C. Central — 17 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. e 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 v filed 16 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 1 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. 17 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, to 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 4 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. of Price—To one be share 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 shares laboratory equipment; inventory, working capital, Underwriter—Nunn-Groves Co., Little Rock, Ark. etc. Ex-Cell-0 Corp., 25 filed 88,000 of stock common of the $4,000,000 by The These assumed Dobeckmun Co., the by Dow Chemical Co. debentures held are by to as at 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 •- 6 (Monday) Higginson Corp.) (Philipson Co.) & First Corn, v (Bids Morgan 'Stanley ,$150,000,000 11 (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. C. Roney Co.) & (Bids EST) noon January 9 & 65,000 shares 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. Co (Bids 11 Co. Southern: New S4.000.000 to be noon (Olfering p. Royal w. Dutch & to a.m. Public Petroleum Inc.) Service Bonds $15,000,000 Bonds EST) $30,000,000 Notes (Bids to be Bonds to $35,000,000 March invited) 20 (Bids 11 Bonds $21,500,000 a.m. EST) $8,500,000 Corp., New York ceeds—To the common 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 3 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) be $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) by 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 4 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 Co and ceeds—For (Wednesday) Co 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 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 26 (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) EST) a.m. March 3 Preferred — a.m. a.m. February Bonds $10,000,000 Inc.) Underwriter if Ford Motor Co., Dearborn, Mich. mon (Thursday) Cleveland Electric Illuminating Co —Preferred Inc.) & Co.. 11 (Bids $15,000,000 PST> Ripley '& Power $10,000,000 $1,248,000 — PST.i January 16 Alabama (.Bids . West Virginia Pulp & Paper Co. •' 11 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 . t _____ (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 RR (Bids be 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) 29 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 be Ford Home Nov. 1 ' 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, to York '<• Dec. White, Co 10:30 New •«" . ing Bonds Co February 19 (Monday) January 14 (Bids of *• share. per $720,000,000 Co Trading Co,, Ltd Gulf States Utilities (A<$tna Securities Corp.) $288,000 i about (Friday) underwriting) ■' ^■■ $25,006,000 14 holders to no 't , 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. 11 Michigan Equip. Trust Ctfs. and be — First National Life —————————Common (B'ds Preferred S3.975.000 CST) noon to Co 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 to $750,000 Products Corp.— " purchase $3,435,000 American Estabrook Baker, Simonds & Co.) $200,000 : — invited) February 7 —_______—Preferred Simonds (Thursday) Equip. Trust Ctfs. be (Offering and National Finance Co. • Utilities (Bids $30,000,000 Co (Baker, to 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 * be to (Lehman Minnesota Mining & Manufacturing Co.—Common (Goldman*-Sachs & Co.; Kidder, Piper, Jalfray & Hap\vood) — S. Bannock St., American (Wednesday) (Bids noon EST) V (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. t. $250,000 Albuquerque, stockholder. Pacific Gas & Electric Co Ltd.__Series B ord. $6,000,000 Co., ' Ford Home Leases, Inc.-__-Debentures & Common International be (Blyth American.-Israeli Paper Mills, & (Stock. (Tuesday) Kimberly-Clark Corp. . V to 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 v' January 21 (Offering to common stockholders—underwritten by the Milwaukee. Co.: Harley, Hayden & Co.; and Bell & Farrell, ; • / * •; V Inc..) 8309,232 at 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 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- to 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. shares 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. 25 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. if & 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. W. 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 N \ 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 on page 32 The Commercial and Financial Chronicle 32 Continued f rom page 31 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. F. 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., Q (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. of com¬ Proceeds*— ' Hofmann Dec. 20 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., at common stock to be 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. 20 mon stock. Price—At par ($1 300,000 shares of per share). com¬ Proceeds— To 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 of 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 of rate one Price—$28 held. new share each for share. Proceeds— Office—203 West 9th per For additions and improvements. Tentatively expected to be received (EST) on Feb. 13, 1958. — uo \ /■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 to 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. 4 Inc., Cleveland, O. Bowlero, filed $900,000 of 5% 10-year debenture stock 150 and shares of 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 of a the Yellowknife properties; and for cost on 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. Y. per Proceeds—For share. Office—116 Nassau St., New York, Underwriter—None. v 23 (letter of 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). 27 filed Estate of John C. Dwan, a former prepay indebtedness to 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 of one common share and three class A 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 27 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 at shares 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 in 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 on of 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 of 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 to 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 ^ V - Motel Corp. of Italy 11 filed 20,000 shares of class A common stock Dec. shares Barney & Co., New York. V'; ' '' ,, • . .. (32) gage be determined by 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 13 bedetermined Underwriter—To by ding.v Probable /bidders;,' Halsey, Kidder; & Co., competitive Stuart Eastman ancl filed 10 ,1 Price—To (par one cent). Price—10 cents per share. Pro¬ ceeds—For mining expenses. • Office—c/o Bruce Kistler, . be 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, . .. r 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 28 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. • is 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 to Purpose—To eliminate or 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 v, 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 of 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 27 bentures St. reduce to $1). Price—At vestment. $650,000 Dec. bank Underwriter—White & loans. Co., Louis, Mo. Oct. 21 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 of one new share 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) to be issued in 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 share held. each White stock and IV2 shares of class A or class B 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. V 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. be 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 share 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 29 . 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 16 33 (33) stockholders. Underwriter—None. Continued, on page 34 The Commercial and Financial Chronicle 34 . . 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 oe 20 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 be and determined program. by bidders: Baltimore & Ohio RR. Bids will New received (1/23) by the company at 2 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 of 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 or 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. F. S. 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. 23 it 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 • / 7 * 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. 8 it 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. in 9 it 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 be 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 i Corp.; Blyth & Co,, Inc., Harriman Ripley & Co. Inc. (jointly); Equitable Secu¬ stock (par $5). To .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 5 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. 26 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 on Underwriter—Wagner & St., N. W., Washington, D. C. Co., New York City. 1 1958 Duquesne Light Co Dec. 12 it was 77 • ' ,. 7".'. .'''•/'v.- 7 . 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 — T6 repay Volume 187 Number 5704 . . The Commercial and Financial Chronicle . (35) 35 " " . Georgia Power e©;rf^20 & 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 • U. - - 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. ^ v, . 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: 16 was announced for v- A 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 a issue of amount sufficient an finance three-fourths of the cost of to 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. to mature to 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 13 $10,000^000 made as early in that 1958. No it 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 be offered- late the held. basis of Proceeds loans bank in one — ' common for share Approximately and for —None. January to new construction each ding. V 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 »'• * iV - f 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, 16 it offer to its was reported common ; ; iv\a,A.T* W../: $30,000,000 of 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- 18 it - 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 a 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. up 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, 6, corporate purposes. Union Electric Co. Nov. 11 it 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¬ 17 L600,000 shares of common stock early in Boston • ^ . company announced was ment of advances received from American (3/4) York. crease . it 12 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 an of „ 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 a Co. To be determined by Southern Nevada Power Co. Dec. 3 it to be determined on — 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 4 /Illinois Central RR." Co., Inc., Coral Gables, New Nov. 18 it to 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 an 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 it 1 in 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 J , 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 11 it 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. 3 it 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 18 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 56 The Commercial and Financial Chronicle (36) In 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 a prospectusTon from your Distributors 63 Wall ' request investment dealer 1977 Group, Incorporated Inc. about held 50% of was stocks bulk Street, New York 5, N. Y. of which have we Diversification of assets Nov. 30, 1957 shows 31.2% stocks common of service Common H. Incoq.. Investors INVESTING1 for FUTURE INCOME? e.iMlAtJ 1925 Cttablltht.H 1925 _ 49.3% v mutual fund invested lis* of securities A in a possible growth of capita! and for selected income in the years of in maining pany ,, ahead. fuel follows: and the assets the The divided 49.6% was U. S. bentures as V first declines greatest in prices have been of the stocks industrial expansion. "The slowing of capital expen¬ prospectus on fund is available from have investment dealer. your adverse an effect prospects of these companies. The Parker Corporation 200 had the same enced and seemed sold to us The stocks companies ice moderate more never of are to advances prices be number a which unattractive. of such found in the the 7 Utility District No. 2 Grant County, Wash., revenue bonds, 3%, 2005 , Common Stocks: American v, Central Natural'' Gas Hudson Gas & 'Corporation CO'." "' in 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 as the had asso¬ registered a For Muir ciated with Eastman past been 12 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 a clearly reached a he noted years, he — The market securities fixed for undergone a its reaffirms n Board's The CALVIN anced Established 1894 ONE WALL STREET, Name ; ; teristic ; of 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.. V 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 share on 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, as evidenced Mr. Kimball conducted his business, J. Co., in Boston. 82 sluggish flecting the general decline in the level of stock^prtces. by S. 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 is Co., Lord, Ahbi-tt & Co. ' . «— Chicago —• Atlanta — now Inc., Street. Los Angeles connected with Walston & He 201 South was La 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 7* vesting term investor to view the future with confidence. _ ■ -7 growth stojck jpvesting which will year 7 x 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 S. 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 - 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 at 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. on 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 A what Mr. of "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, in 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 of funds placed in fixed-income se¬ curities with that placed in com¬ representative com¬ stocks. common 12.9 bonds; of proportion levels, earnings, and dividends, than has prevailed in indus¬ raw Mr. with business Stocks: Heinz J. > 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% of nondurable consumer 4.2% Gas Eastern Texas 777/ "Conservative dustries. cum. tries, 12.5% in stocks of producers of Co. Stocks: 4%% the as Light f; cumulative General Telephone Co. of Cali¬ fornia 5% cum. New Orleans Public Service Inc. equity investments." our & ' in in Power El Paso Natural ' assets our Industries, 4%%, 1987 in Preferred shares O i 1 5%%, 1977 Louisiana years. our Fund. ton to Associates Investment Co. 5*4%, share, than more 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. ; a more 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 or •• 7 from Dividends year portfolio in the year 30, 1957 were as fol¬ Nov. Kerr-McGee previous investing ' preferred and 500 eliminated Additious Index. 77 /v..: :.77; op ■; '7777 Group Securities, inc. Incorporated 19337, I . Poor's & or Bonds: a Standard to 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 in the stocks of these companies to perform relatively well while the current readjustment continues." Asset Value Off Anton A. become affiliated Fla. growth is There (Special to The Financial Chronicle SARASOTA, Cedervall has the 1958 balance of securities sound By ROBERT R. RICH McGauley Joins Hardy, in "Investing \' partnership. ster to limited Thursday, January 2, 1958 ... On cash Nov. and 30, the company held short-term U. S. Gov¬ Salle ernments in the amount of with 207, equal to t14% of net assets. According to 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- or progress in the free world without creating a and fective substantially enlarged the demand for materials of [ raw industry, and the major known p mutual funds selling so Why has this become a big are well? industry? What is so good about Well, many know the an- them? I 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 a is service needed located are "radiation" States. - t ,'/ .... i ; \ 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 as a been Assets Over Smith Mr. . in bom was Total net assets of $1,000,- over few weeks a 000 and morb than 400rSharehold- World in later. War After I as stint a Second a 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 1 duced it on 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 us their on orders—I as¬ , go with dealers are now another is fundamental statistic. _ a • PKCiit time ni 40 i! in Merrill T vnch KA Weree ' !d Co L in u'o inrLS in reSulted the largest ,a s 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 . w . . > a* 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 to f V. rw 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 F do 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 It telephone a $9 bil¬ held by shareholders. we are Soliciting business is over ■ as 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 we the present stock market, as pay total sets of mutual , j think soon industry high-cost operation and customers big one. are and should be glad to a 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- to Manager J.1 A 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 to man ' is a 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- to .Why March 1 9 58, -beginning 1, 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 more saker anticipates i § postwar (3) There cannot be growth official who j , T selling* mutual funds are offered by a mutual fund finds today's uncertain stock market period makes on 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 46 Lynch Firm lo Change Its Name Communism will not long permi (2) the Merrill nomic ' of shape the investment policy of International Resources Fund: ■ those 1o The point, of / Selling and Attracting S1fied Growth Stock Fund, Inc. considerations to atomic as selected for investment by Diver- report listed the following which will continue engaged fields un¬ 3? develop a 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, .... # _ t ~ ?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 a 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 » I I 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 of parn;n(fC Mr. Alpheus Lynch, C. Beane of Merrill Pierce, Commission's list of "All Manufacturing" companies, which (lope does include include not no. service service indusmaus tries. Were to to these increase The the growth utilize their sales and profits? study same companies earnings retained found four year that, MelJn Lvnch made an so on that 28 1958 mteht have Feb I ° tnat i mibni nave my own associated with become or ;thermembe7of *r from retire to opportunity to form firm m ■» the New . stock york Exchange. . , ... ,, T 1 . ;^n_ , ' and this very timely, at -mriiintf Nnv 97 miitnaf f^ind^ Ever funds. FvJr mutual nn on have had summer we n i^ summeiwe^ a ve| a , , 17 Points po:ints^ b^nced up }urther declined 17 influenced anH _ , «6 , by Hive one d'av- 01 b's movements, up $b one day, off $5 the next. sort of scary a mvir Obviously, this is climate in which winniurf q hnrco Ohxri ImS nkn d\ tim! Ip chn!u^ seriously consider !lfhl+haf cA?,*ni1cn should whether ihe ' , confidence by shares 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 to 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 it the on sales interested in making package of natural money, resource a and VAAV IJiVOV^VlO Ulb XWI lllUtUQl difficult "V "O Pleached by our industry about calls are organized, and these basic 1 h being the real muUC1I1« 1UU 1 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 is 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 bv Mr. Investment an all- Hun*aker before Club. as tals,'and churches and others that upaviiv :n 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 a pie point that I wish to make that range of ^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. a will time^and d to down oninion the pres- m spon- including his name in the firm growth utilities is ouf th^^t^wmuld^be VV 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 be eliminate much AVho Buys Mutuals? , sales will ThJ . in 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 is 4-U^J. fn fbnf mar to that mai- s nf dweP dwell , haveyad0gnrcater paTtkipaUon6 management during period, decision <<Mv (m 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. to 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 I CS 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 of Chairman as trustee on hKL director o 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 38 . . 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) 42 .Jan, Week Jan. §1,510,000 4 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 1 5.967c • ♦' Other All $66.42 $66.42 $66.42 $63.04 $32.83 $32,00 $32.33 , l • 26.600c 26.300c 25.975c 35.700c 21.950c 23.100c 22.800c 177 Dec. 25 Dec. 25 Dec. 25 13.000c 13.000c 13.500c 12.800c 13.300c 10.500c 10.500c 10.500c 10.000c 10.000c 10.000c j -« ',-'-2..,:i8 J'" 114 Dec. 25 —Dec. 25 Dec. 25 (primary pig. 90#) at Straits tin York) (New at—— 36.000c 26.000c 26.000c 92.625c Aaa ——— 92.750c 87.125c 9-2.65 93.13 buildings »' 47 v ' •;' 2 32 . 37 -,•!'•■ 21 216 2-22-: 2- •'! / 42 .2 475 • 1 7" " v. 1U . -570 2 . ■ 19 • 133 92.20 Highways 431 21 v ^ 't.1 22— —..—22 43 .2 34 ; * V ' ' 45 210' 262 * 31,. 344 - . ' ' 26 26 40 24 : . 11 -1,042 403 234 325 " , v V 32 33 , 41;;',S' .j 30 , ' ' : 34 l—-22— service and •• ' • ■ ,107.) 7 1,410' 53 . 361 : ,.v " : 55 • , " 20 * . buildings——— r 1 1 «' ' ; 2—2_2_22.__2:——2 ' 37 132 110 and water ' 405 * r. ■' ; " ' 555 105 2 All other _"—_—2_22__' enterprises service and public development 2—-i— ——2—12-2222222*. • * < ' " .- ■ •' 60 45 •' ' 38 ' . 50 " - 87 » ' ' ' r ; • 73 ..11 32 -•100 9 - .. 110 73 32 , ; 326 ; 118 38 Public 117" '• "" 2„ _2—22--2—— systems'— ———^ ; W. ■ 67 Sewer 87.75 ■■ 9 ; 95.32 89.23 100.32 ■97 ? :• 97 405 12—,2. 22x.l——_2-H _2 facilities Military 101.375c 91.88 , 92.79 100.98 95.77 •' 2 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 1 > Commercial 1 number——22—2—2 — 166 544 176 94 99 194 ——i-——. " 214 559 482 • ... .—-.—.-*22-^-—2—.— • service " • ■ 114 lr-1-r-—. — number Construction ' 213" 1_————; number number number Retail BRADSTREET, & November: of Manufacturing 82.27 Dec. 31 Baa ;. ■ Dec. 31 . ' 199 74 ■ 27 . - - -• •.-<:•». 1 nonresidential Dec. 31 Aa A . ,48 1,164 _t Conservation .Dec. 31 —————..Dec. 31 — 164 1 47; •;•:>• - ■ . • Administrative Other • , Government Bonds——————-—Dec. 31 U. 8. - , r Industrial , /' 14.000c MOODY'S BOND PRICES DAILY AVERAGES: Average corporate «'• " C; «-• . _———— construction 13.500c Aluminum ! 80 -'28 /U 25.000c .— •>165 " 78' instlt'uitidnal————%!?<•>» Hospital and institutional" 2—22—1— 15.800c at •• ' • 1—2—21722222———_ Educational 16.000c 12.800c at - 329 •• ;,=> 155 49 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 ,r 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 ri Telephone and .telegraph- — 1,521 ' : : 2,822 - '46 251 - •Social and recreational --i.———I 12,227,000 QUOTATIONS): * <" 51 '802 Miscellaneous '2-——X— ■■■' copper— 1,125 ■*' 355' 1 warehousedj2-J and * J. 1,528 1.085 • ——2—2—_—r_2. ' • 265 235 PRICES: M. 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) r, ' I.. , • t' , PRICES $924/443,000 ! ; OF — 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--'~ : r, 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 of 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 on Ago 30; Total 8,856,000 180,543,000 • construction Private 7,107,000 183,390,000 32,942,000 • Nov. of .i„—„.22_l —■—_—2—2_l_it shipments ——C „2„!_. foreign . 7 construction U. 8. * . Year Month FEDERAL RESERVE BANK — exchange Based . 2,594.000 Previous 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: OF 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 — in or, either for the are Latest Imports Exports Crude runs to Kerosene Ago *53.4 §59.0 4 that date, on 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 or Previous Latest Dates shown in first column month available. or • '• 93 /•., 171 89 • / - ' r . 86 ' MOODY'S BOND YIELD DAILY AVERAGES: U ..Dec. 31 : Aa 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. S Average 3.98 4.48 ' 2 4.32 A ..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 = 94 368,256 388,664 FOR ACCOUNT Short sales Other t Total L ... Total Total Dec. 7 397,110 44,900 403,500 95,800 403,520 426,100 : Dec. off 7 448,420 521,900 To 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 7 1,084,277 1,045,486 7 11,791 20,056 884,080 ^ _■ _ . - $38,131,123 • 7 1.072,486 7 $43,552,805 $43,101,315 7 320,570 297,490 Dec, 7 7 320,570 297,490 182^2 80 227^880 7 452,460 480,370 589,640 649,190 '• 227,880 Total sales 21 WHOLESALE PRICES, NEW SERIES —U. S. 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 a .Dec. 24 a 92.8 91.6 " 88.4 .Dec. 24 a 107.3 106.0- 103.3 .Dec. 24 a 95.0 91.5 81.1 125.8 125.6 124.7 Amer.(Tel.'& Tel.) ;—I J.——2 OF IN U. S. BOARD—Mdnth — of IN HOME "• than farm and foods! .Dec, 24 a of ^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* on 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_ 1 — > x. $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 of ; (10) . > Nov.:' YIELD .2 incl; : 2.24 1.92 2_!—— :_22_1_222—■ AVERAGE STOCKS—Month (199) 22 MIDLAND REAL products foods— (not - :2_ of 100—Month — (125) (15) Average > -'-72.86 RESERVE FEDERAL = (25) insurance NEW OF Processed commodities Banks 597,720 1,018,030 13,036,520 LABOR —- (1947-49=100): Commodity Group— commodities THE OF 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 1 "88.96 r > 88.70 39.6 goods ERNORS $82.22 •$82,56 $82.32 38.7 SYSTEM—1947-40 1 Dec 21 . , 21' < ^' ' ■ ( Nondurable, goods..—.T_—_2__. r — OF "7 • 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 , _1 r - Durable • .Dec. — ' manufacturing Hours— 1,438,457 $52,552,708 ' TOT££JJ?^ND"LOT 8TOCK SALES AND DEPT. S. November: of 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 - r - 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— 2? > —1- of October!--—-2_ Linters—Consumed month 46.300 12,815,385 ( , 611,949 .—Dec. — Customers' other sales Dollar value All 2 October—-— of 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- OF In 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)— 30 Dec. — ——, , 8.749 , YORK—' NEW MERCE —BUNNING BVLES: . STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND SPECIALISTS ON N. Y. STOCK Other OF ._Dcc. purchases Number $325,000 505,535 Total sales Dollar Nov. of COTTON 424,230 470,810 615,952 • . OF DEPT. .Dec. . — S. 11,231 9,270 . * .Dec. — _ $39,886,000 OUSTANDING—FED-' . BANK RESERVE COTTON SPINNING round-lot transactions for account of members— EXCHANGE j _ .Dec. — sales sales PAPER COTTON GINNING 1,730,510 326,990 , 2 ' Short sales Other ' 102,800 the floor— sales Total ERAL .1,720,690 356,480 1,374,030 . 223.190 7 CORPORATIONS—U. S. 1,854,000 3,195,000 $47,428,000- I■ 306,560 7 ——1 COMMERCE—Month of Nov. (000's omitted)' . 110.16 1,396,620 " 1,863,850 Dec. purchases Short sale# Other 1,452,480 t transactions initiated < / .... — Total sales Other 1 147,680 7 1 497,380 Dec. purchases sales U. 96 the floor— on Short sales u Other 304 800 7 --..Dec. transactions initiated Total 7 Dec.- ... sales Other Total sales 1,373,960 376,150 1,020,470 1,914,260 453,550 1,510,300 7 . * imiiimmmimimmnim ■ : ' >>, //// :i( Dec, - - (NEW) IN THE. BRADSTREET,. & November of CASH DIVIDENDS—PUBLICLY REPORTED BY As 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 n 109.26 108.22 108.26 MEM¬ OF 11,099,000 2^—— STATES—DUN COMMERCIAL .Dec. 27 100 TRANSACTIONS UNITED 280,141 92 276,494 OIL, PAINT AND DRUG REPORTER PRICE IND£X— 1949 295,993 93 .—.—Dec. 21 L 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' v ' 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 J 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 to 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 39 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 i .• tal United States, released teif7onSS-"h^ewr-1u ine ThevudurH juu siuay 11 full ■■Outlays for text jouows.*_ construction new f 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 of tho also and used tvnes ices housing starts, offset by because a rise will be one-fifth greater than 1956 of $47.2 assumes,'Uoans.,;-:, J2 bdlion record should be at:,i Major fix-up work (additions tained in 1958 for gas facilities The outlook _1?JL wnni J" ft1®4 . total of about 1,100,000 new non-farmdwelling units Wiu be started in 1958, about S ".SitS* a development a. of Reclamation programs Bureau . . andalterations) to existing prithJ3 vate> housing has been rising S Sf I^000 of which will be prii; sharply-Since 1955. This trend is of v ark put in- rplace^(exr,:.va^1x,: This w iow unie; and investhient: in home loans should in other public housing programs, expenditures. .The chief areas of record.i^.eA> f . . f£ .^ The chief; deterrent in armed spending will be for electric programs are likely to continue billiondemand for such nuruoses services housing will be the dearth power and gas facilities, for which at about the recbrd 1957 rate, as 'as industrial plant and equipment of credit for lowiihterest mortgage the increase will be over 10%. A gains in Corps of Engineers and — expenditure 1956. Conservation ^reio=?e<:teti0 above$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 by activity drop in a the St. Lawrence Seaway, on which peak construction is now on 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 v '-'*;; expected to are $2.1 .billion total of little. Under.- current a stringent credit in:^s than: 1,000,000 private; units; terms and limited housing avail- —, . probable a authorized for in start 1958, a A o£% the Public Residential in units bKiiitvi qHH homes. ! rather; than Building;''; strong advance in total fflmiliPQ fpnri manv buy new hous^%^°; Jr^V$?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 more than one-third above the expenditures of four years ago. Expenditures lor almost all major types of construction probably rise moderately^.or other will _ ^ . of 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 in 1958 is that assumption in the of 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 • - _. .1 • . l • . 1 rt 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 of 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 in assisted by was credit conditions easy ni 1 4".* a 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 4 + 6 + + 10 + 9 . . - . . . . River Storage project), 4 + 3 — — 1 + ' 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 2,500 870 870 525 540 warehouses and restaurants, and 7 ' - 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 + 54 300 300 + 9 0 + 3 0 + 3 0 195 L_ii 200 1,560 . construction. 1,600 200 1,600, 2 + 3 Public utilities Railroad _ _ _ _ _ 5,825 5,113 427 _ ' " 450 . +14 6, J 50 400 + 1,000 + + 6 1 " Telephone and telegraph 1,066 2.350 + 14 + 12 2,000 + 29 400 + 7 225 + 58 + 18 12,818 13,900 14,900 292 505 850 + 73 4,072 4,470 4,710 + 10 453 455 450 t 2,549 2,830 3,000 + 11 '+ 6 298 CONSTRUCTION PUBLIC buildings Nonresidential 330 340 + 11 f + 3 < - buildings _ Industrial Educational I Hospital and institutional Administrative Other Military and —_ _ . service _ ► 430 362 —__ . L . " Highways Sewer and water systems * + 470 410 425 1.100 4,825 5,500 1,345 8 1,270 + 8 + 14 + 5 + 12 785 750 560 520 — 395 400 + Conservation 826 965 950 + 17 All other • __ and development 104 public *JoiQt: estimates of the Department of Labor and 9 6 + 384 ' + - 2 3 — * — — 6 4 7 + 1 — 2 120 + 15 ' 1 THINK I BELONG IN THE SECURITIES FIELD Aire S3, college trained in science. . {Change of less than one-half of of agement with net sales security worth security of field. analysis $200,004. Desire to on 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 next in year response, TENNESSEE CORPORATION to 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 the of case 4% CASH DIVIDEND sewer drop which seems 7% the whereas decline in out- of fiftyflve dividend A share was payable December 1957, to stockholders of (55 i) cents per declared annually Class FIEST than immediate T Chronicle, N. Y. Commercial 12 25 Part Ml and ii Years enter Institutional with essential. £ Financial Place, New York . Street . well- institutional to known . 20 buyers in U. S. and Canada. Write rather are Wall member firms fjff Man. 0 0 il Box mercial Chronicle, N. Y. 7, C and 25 N. Y. 1212 December 3, 1957. DIVIDEND EXTRA CASH An Syndicate Experienced jv/A security in potential earnings AVAILABLE mm m4 annually plus $15,000 $35,000 to profits. ness m have the In¬ I average Earnings Zero 0 the Department of Commerce. helieve I Man¬ coupled has produced a organization telligence and other attributes necessary-. 7, tLast'2"mouths estimated. K. C. San 19, Box 120 business stock¬ of record at the close of busi' 1 + of record cember 27, 1957. mm 5 —14 701 _ _ + — 4 574 Water 7 + 68 9 — Public service enterprises Sewer + + 19 450 1,275 1,275 buildings facilities 1.395 4,470 nonresidential school 0 190 375 close common of large of children rjse jn the population + 11 400 • —— private Residential 7 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 5 to ment of suburban areas, the \yar u period, and the a sales will help * • at 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 ' 1 Miscellaneous Farm 768 'r Educational 1958, holders the wake of substantial develop- pletion + cash dividend for a upon t , on 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 0f ing 5 + • stim— area. will garages 9 " Olfice and into the Sacramento River. Other high- $850 million in 1958. slightly above 1957 levels, follow- X + nnnsi^Prflhlfl this in Outlays. for stores, restaurants, and +, 6 6 Federal-aid funds nrnvirlpH Vioirri 5 + 6 —10 9,150 2,875 3,631 i — 525 8 817 (nonfarm) Industrial - + 50% in- jnore than in 1957. crease 1957-58 2 t 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 ns year. On the increasing expendi¬ by the Bureau of Reclama¬ expenditures (90% Federal and state) will expand from about $250 million this year, to ' C _ single-family houses, continuing the decided uptrend in multifamily residential building which began early this year. It is oh next hand, by 14%, to $5.5 billion, and that ' 1! 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, in Com¬ extra dividend of 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. < 40 The Commercial and Financial Chronicle (40) Thursday^ January 2, 1958 ... t: BUSINESS BUZZ Business on ♦ • • 'flkV** Behind-the-Scene Interpretation* from the Nation'* "l Capital - . Broadbottom and N* / WASHINGTON, C. D. though the competition is to be keen, - that - Nonetheless, there are members be 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 no business. As < i a ! V ; Is buying Probably goods continue to do business behind-. closed It doors. up v is mistakes easier to through a 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 in It 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 in year. this were collar expected ditional to insured by the Insured banks consisted 1958 that w An 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. as : r 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 he On the in involved commission by the FDIC or 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 is an Total or of State assets of all growth is ex¬ pected in hospital construction amounting $600,000,000. to estimated an Federal aid funds amounted to 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 at Fidelity-Phila¬ Vice as - President Deposits of .all $218 billion prices, on banks N. Y. and Treasurer of the bank 31, 1957! m , on Dec. nual 1956. are some discussions of such restraints in high places. At this time enact¬ appears Demand deposits declined 3%, while 7% greater. time deposits were ' remote, but the increases picture Could change. in All states showed time deposits of business and Individuals. Eight- The Eisenhower administra-! een states ' «^iion : is driVrecoVti posed to controls as on 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 A. 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. T~ . ♦ TRADING MARKETS v '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, A Television! i948.-19A?-~lQth. An¬ on 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 of 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 an 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. of 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 •' A 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 a hoard. other pn 391 were commercial constitutionality of 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 — an The trend country blue collar workers! dict * were tion, 13,445 FDIG. Once again, there. are discus¬ sions of a projected Federal white more 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. : be 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 1 explosion spending fiscal year on July is predicted that Nation's Bank Structure producers. weapon a University of by Harold -M. Somers—Industrial Liaison Of¬ favors insurance for hazardous- South Carolina. Government of mergers is causing concern in the at >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 J There Taxes -agement—Proceedings of ida, f .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 to 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' a 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 a a 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 of 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, of 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. v . 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 in Congress is insisting that a Congress in both major par¬ of firms are go¬ more best. is Al- going — free Bubbledome - Investo^ent Securities - 18 Post Offics Sfusro,Boston 9, Mass. .Telephone ; HUbbarJ Z-1990 'Teletype " " - BS69