Full text of Commercial and Financial Chronicle : January 3, 1957, Vol. 185, No. 5600

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0Mi7 /

New York

Number 5600

185

Volume

EDITORIAL

and

income

at

a

as

and taking
view

rate of
now," but he1

spending more, capital

investment is

If this member of the Eisen¬
hower team then gives large credit to the Ad¬
ministration for these blessings, no one is likely
to condemn him for this bit of political strategy.
at

in another city Edwin G.
Nourse, a former Chairman 6f the President's
Council of Economic Advisers — and not a de¬
votee of the New Deal or the Fair Deal, either—
the

On

day

same

against "high-pressure economics." Un¬
goals, or goals set so high that they
inflation and other evils are not whole¬

warns

reachable
invite

We, of course, have no way oi
knowing precisely to what the speaker was re¬
ferring when he spoke of "high-pressure eco¬
he insists.

some,

He

nomics."

may

may

or

not be disposed to,

the occasional official forecasts p/
greater and greater things to come, or to such
exuberant statements as that of Secretary We^ks.
to

object

There

are,

of course, many ways

on page

24

American

Recently there has been much talk in Wall Street to
that, although stock prices have tripled in the
last seven years, there is no need for concern because of
the prospect for

5l/2%

as

inflation.

1955, but perhaps as
dne-half of this rise reflects

The "new
1920's

equipment, gave major4impetus

lays/ in the aggregate
the/rise.
...

are

unlimited

still on

such
for

'

close

while
than

in

Treasury

to

ahead

billion

$10

by as much as $7
by

address

American

Finance

those

1932.

was

who

and

America's

but the truth of
small consolation

held

stocks

common

September, 1929 and June,
I am firmly convinced that in¬
is

condition of

a

our

John

M.

Templeton

present

•

will continue for a generation or
more.
In fact, throughout the history of the world, in
every nation
we have studied, there has been a ten¬
dency toward inflation in the long run.
But these are
the days when we should remember also two other facts.
First stock prices can decline drastically even during
periods of inflation. Second, long-term trends toward
inflation are sometimes interrupted by temporary de-

society which probably

of 1955,
Roy L. Reierson

cash withdrawals

billion; in 1955, in contrast,
Continued

"An

growth
future;

trends

flation

outlays advanced by no more
about S2 billion.
As a conse¬

quence, the Treasury's cash deposits
in the calendar year 1956 exceeded

based

between

1956 derived a
benefit, on balance, from the infla¬
tionary environment through a large
/increase in tax receipts, which are
Tie

truth.

philosophy" of the late
on
the truth of

era

was

"population

the boom in 1956 and capital out¬

to

like

popular,

grow

these, do usually contain some

spending, notably on business plant
and

!

which

Ideas

prices. Increased investment

higher

Such Vague talk may

higher prices are likely for all stocks
of
companies owning natural re¬
sources
because
of the continuing

above

much

further inflation.

give some investors a false sense of
securitity.
Another example of re¬
cent loose thinking is the idea that

incomes at new peaks.

record

during price infla¬

are

the effect

is closing 1956 with production,

economy

points out stock prices can decline

sometimes interrupted by
deflation, and that drastic declines in stock prices can
occur despite longer-range inflationary trends.

national product will set a
of /bout $412 billion, some

Gross

factors influencing stock prices, and illustrates this
significant disparities in cost of liv¬

tion, inflationary trends

ahead. Mr/ Reierson comments on the larger
Federal Reserve credit, commencing last
November, than that supplied in the corresponding period
of 1955, and feasibility of bill rate fluctuating rather
continuously above the discount rate.

of placing/the

Continued

ton

the year

The

recognized

emphasizes inflation is only one of

ing price levels and stock price behavior, including nat¬
ural resource stocks, both here and abroad. Mr. Temple-

fhe second quarter of 1953";

industrial commodity prices, and

the subject of inflation

on

with charts showing

management operations; and 1957 prospects, perceives
no
easier lot for the Treasury's fiscal-debt activities in

high level."

a

Copy

Englewood, N. J.

danger to sound investment management,

many

basic credit policy

injection of

self-gratulation the Secretary then adds
is strong. People are earning

a

investment counselor

and, after reviewing 1956 Treasury financing and debt

the econ¬
Whole should set new records." In a

and

more

is

Bankers Trust Company; New York

market that developed in

''confidence

that

Warning that loose thinking

Economist,

change; believes authorities will not permit a "repetition
of the near-demoralization in the Government securities

that "barring grave emergency,

mood of

and

situation does not warrant, as yet, a

He thinks that "in

future.

the

.

Policy

Wellknown banker-economist observes current business

Commerce
issued a state¬

day in Washington

/

,

economy's present high pace, the

sure

a

By JOHN M. TEMPLETON

,

Templeton, Dobbrow & Vance, Inc.,

ROY L. REIERSGlN *

Vice-President

production higher than this

expansion may not be so fast as
omy

By

through

over-all employ¬

reviewing the year just past

look

of the

is

And Credit

according to the Secretary of

ment

Cents

Price 40

.

good times

that

people should continue

twelve months with

who the other

a

indicate

trends

for the American

1956,"

/

Outlook for Fiscal

"Foreseeable

ment.

'*~*0

7, N. Y., Thursday. January 3, 1957

See It
the entire

< jrT

-

*W

v

on

there had
page 20

before the Annual Meeting
Associatidrt^Clevefand, Dec. 29, 1956.
Mr. Reierson

Continued

of the

REGISTRATION—Underwriters, dealers and investors in corporate
complete picture of issues now registered with the SEC and poten¬
in our "Securities in Registration" Section, starting on page 30. -

on

page

29

SECURITIES NOW IN

securities are afforded a

DEALERS
m

tial undertakings

,

U.

mm mm

STATE

Municipal

AND

Public Housing Agency

MUNICIPAL

COPIES OF OUR

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telephone:

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ARE

Available

Burnham and
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ESTABLISHED

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STREET

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Stock Exchange

Chase Manhattan
bank

YORK 5

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coast

Banks and Broker*

Corporation

CANADIAN

Class A Common Stock

BONDS & STOCKS
Analysis

Executed On All
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Canadian

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b

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our

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tttetype NY 1-2270
"DIRECT

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Goodbody &

request to
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upon

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CANADIAN DEPARTMENT

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CANADIAN
SECURITIES

District Bonds

DALLAS

New

Commission Orders
1

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Members

Teletype: NY 1-708

Net Active

Members

County and

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Harris, Upiiam & C120 BROADWAY, NEW

To Dealers,

Municipal,

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OF NEW YORK

Company

"

State,

REQUEST

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on

BANK
DEPARTMENT

DEPARTMENT

BOND

NOW AVAILABLE
ON

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Bonds and Notes

"POCKET GUIDE FOR

TODAY'S INVESTOR"

FOREIGN

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30 BROAD

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LATEST

BONDS

CHEMICAL

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and

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Members New
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other Principal

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Broadway, N. Y. •

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BUS. ADM.
LIBRARY

(2)

//£-

For Jianis, Brokers, Dealers

You've

The

only

Hgard Traders Say

they

my
it because they
"HaiiseaticV private wire
system
reaches hanks, brokers

dealers in every part
often

The

long

seatieV
ment,

Next

lime

problem,
eeatic"

,,

a

trading

call

not-

,_T

Pacific

The

have

you

.

Texas

M

'

why

,

ish

120

Priidte

SAN

Wires

to

bear
5

flation

i

a

(At

n1y

McHONNELI&ro. I
j!

sents

Exchange

Stock

120 BROADWAY, NEW YjORK

Miller

.

.

||

to

the

of

TEL. REctor 2-7815

surest

stock

which

is

low

and

Trading Markets

half

its

Land

19*5

Trust

holdings of land

Bank of'

■

,

Gas

Company

the

Lynchburg, Va.

It

Tele. LY 62

;

r

as

of

-

This

-

--

rights

LD 33

J.

of

..

on

Official

United

Trailer

Artist

in

f

37 Wall St., N. Y.

"

35,000

Tel. HAnover 24853

Trading Markets

difficult

in

the

write about

for

a

I

is

of

about

Dec.

1,230

h°

on

31, 1955, there

Camdale Corp.

.

Philippine
T

M

T

Cataract

Inland

Oil

Resources

Transcontinental

Oil

i

•

i

about
term

tioa.picture theatres
Statcs

CAPPER & CO.

Exchange Pl.t Jersey City, N. J,
HEnderson 2-8570—N.Y.:
Dlgby 9-3424
5
Teletype JCY 119




a

" a.

a

t i

■■

b 1

e

per-

point
-

:

on a

197 cities and

m

$860,000

op

-

sec-

*300.000

-

-Of

in

ol

mo-

in the United

leased) in

20 states.

television

the

motion

picture

industry has been in a prolonged
and
steady -decline. As a result

Pertinent

An

interesting

acreage

growth

value is

As

a

E.

'

was

short

of

Texas aud

of

The

the

of its

cities and

towns. For instance El
Raso. which is hemmed in
by the
Rio Grande and
Mexico on the

south and mountains to the
north,

70

Branches
Bankers

Broadway, N Y,6 COrtlandt7-5680

say,

The

those

Burns Bros. & Denton, Inc.

figures,
v^hie

of

37 Wall

Street, New York 5, N. Y.

Underlet iters—Distributors
Dealers

diversification

the

realm

leaders

who

downswing is
good

of

to

the

Investment Securities

has

film

Canadian and Domestic

in¬

know,
"Box

claim

Office"

insufficiency of

an

Personally,

take

more

than

move

me

it

is

just

from

-When

a

comfortable armchair, vie wing my
television programl It is
an

visit

to

Picture

and

reproduction

motivate

and

World," done

-

in

'

reactivate
KELLER BROTHERS

"movie night." Pictures such
Oklahoma and 80 Days Around

the

'

:

of

my
as

our

New Offices

cutstanding method of

projection
sound

"good

a

in Boston

mv

rfavorite

going Mo" take

s

in¬

theatre

the

the

pictures.

going

of

should

of

cause

CO.

Todd-A.O.

BIO COURT STREET, fOSTON V.MASL

process, would-do the-trick, '

ts«*pn«M« "Ochmcxid 2-2 5 JO

-

!•<•»vp« ^S-630

Theatres according to

-report,--has-acquired
exclusive rights to

the Smith-Dietench patents
ering
of

a new

camera

The

new

covelectronic lens system

and

projection technique.

audio-visual

dium is called

ing three
to

me¬

"Cinemiracle." Us¬

cameras

which

are

svn-

photograph the image, the pic¬

ture is finally projected from one
booth which holds three

central

Continued

_

on

page

savi no4'

25

Statistics
1956

:

1955

$59,707,000 $61,692;000

before Federal income taxes,

Net income and special item______
Per

Book v-ahie of capital stock
per

.Dividends

-

•

paid

per

4,387,0C0

2,886,000

$0.84

■-

$1.72

—16.055,000

9,453,000
16.572,000
27,581.000

'•

OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX

$1.04 *

2.836.000

v

$1.04 b

14,335,000

,

14-Year Performance of

5.864.000

20,914,000

i

*7

$10.22

share

50c
_

2,699.486-

**70,(300 shares purchased
.during fiscal year.
v

A

24,897.000
'"$8.99 ;

■

•
■

FOLDER

ON

REQUEST

:

-

50c

2,769,4So

'

324

35 Industrial Stocks

.

'

share

Shares of "capital,-stock
outstanding**.^Number of operating theatres

.

N. Q. B.

5,792.000

2,277.000

4,648,000

Working capital
Long-term debt due after-one year__^,__:
Capital stock and surplus—
;

phenomenal
some

1897
—

early

Rhoden, President,

the

dustry,

Cash and U. S. Govt, securities-

income

feature

Tokyo

Investment

values
to

For

with

roal

of

means

C.

minority interest and special item—.V
Net income before special item
Per share

-

the

&

•

.

•

Office

-table.)

•

,

111

company's financial posi¬
strong. (See accompanying

Fiscal Years Ending September—
Total income
Net income

Established

;

Brokers

September, 1956.
share.

tinker

■

via the "spin off" route In
September, 1952. Since the advenf
of

'

Home

-

car¬

fold.

many

per

company came into public owner-

this, about

set aside for

was

The

largest,v<«p]us"

ship

were

hand

on

invested

the

needless

estimating the

Previously controlled by TweriNational
tieth Century-Fox Film
■Corp.; tho"}^ annual

in

Yamaichi

company

property

of

as

to

.

good picture to
1,

Concentrated', mainly an

/

.

1

I

the mid-West and West CoastvNationa1 operates some .324 theatres

In

obligations..

taX^S.

:

a

wells

As of Oct. 7, cash

like

in

and

increased

tion

d't-

little

f i t

.chain

for

-

Securities Co., Ltd.

the properties and add that to the
value.
-

could
a

view.-

ond

Morton

write

or

dustry.

eratesfhe
S.

information

current

Call

com¬

of the

parent

time,

value

outside

N

leased for such purposes.

Mining

a

patience prove

Paul

For

book

em¬

about

with

in

addition, the Trust
derives about $160,000 a
year from
grazing leases, about 99% being

-

that

$10.22

was

try

producing on- National Theatres' income from
this acreage and some
50
have-'film exhibition has declined fronl
been brought in this
year, com--$3.74 per share in 1947 to 63 cents
pared with 76 in.-1955.
Of the•_per share for the fiscal year endacreage held by the
delay rentals, ing September, 1956.
However,
quite a large proportion is in areas the sale and lease
back
of the
where production has been
found.

sibilities.

Trailer

»•

//-Theatres

d^l^v
not

r>

the

on

excess

The

land

company I
like
and

*

held bv

leased but

in

reorganized

1930's,

appear to he stirring due
improved Japanese economy.

would

centage

$600,-

hy

ro

from

large tract is held in Culberson
County (124,723), in the Delaware
Basin, which has good future pos¬

Seminole Oil

.

was

who

to

to

indicated the company intends to
purchase .--a
.profitable
business

of

386,928.16

hek'

it

now

than

more

Mr.

A

_

remaining at practically
stationary levels for three years

these-actions

carried

43%

value.

.book

many

m-r o

production.
As

ried

business

feel

perpetual

acres

1-16

of

was

whose stock

Assum¬

an acre

1-128

wpw

that

STOCKS

disposed of a
unproductive theatres

value

ure

about

person

think

branch offices

after

pany's books; during 1956 this fig¬

Exchange

to

are

and

our

JAPANESE

earnings.
they have

approximately 34%

the

E.

"Security I Like

a

:

share.. In addition

a

S.

at

securities

There

acres

acres

acre.

$5

85,324.77

on

which

the

write

considered

—

an

arid

cash

rentals,

1930

is

Recently, 'the*

even

production and
acro<s

ftreeuemuiCompciTU}

Slock

wires to

is

halt

propriate to

surface

this, the Trust retained

royalty

Theater

Circuit

ESTABLISHED

some

price of

a

000

.

V.

;;

.

Trust

County

imately $6.60

Films

M. T.

IN.

1-fa*#*?4-

share,

sold

for

vehicle

MORTON

.

year,

approximately 1.3

Paso

Birmingham, Ala.
Mobile, Ala.

Direct

a

which

to

in

from

.

choose from

the entire
acreage, this would be
$8,935,820 for the land, or approx¬
to

T.

*

;

the

acreage for $7.50

HaskaSite Mfg.

S.

-

* NY 1-1557 y "

.

Theatres

number

McUermntt & Co.. N. Y. C.

-

per

trend

benefits

since

1.3P2 lot?

land

ing

Korvette

P.

Best."

among the.least desirable of their

~Trading Markets

currently quoted

Corporation in Decern-?/•
the Trust retained 'the

gives

Inc.,' has

effort

other, .things

National

pres¬

Y.

N.

Exchange-

New Orleans, La. 4-

obviously two-fold. It is in¬
teresting to note that during 1955

share.

ployed
to

1,381,589

last

Town Lots

El

E.

12,000

(Surface/rights
-only*

Trust

I

Classes-^—_—__

Land

-

the

on

Exchange

Stock

"

are

capital growth. The

listed

fork Stock

HAnover 2*0700

producing properties, such
parking lots, supermarkets, etc.'

The

?lational Theatres, Inc.

examples of

following:
■

ever

certain

more

spin-off of four shares of

Oil

as

Also

-

with

1954,

in-my

are,

conservative.

-

ber,

•-

no

Members.;

1,146,48.9

TXL

Mason, Inc.

figures

ultra

PAUL

of oil

and

American

"

sold and closed unprofitable thea¬
tres and converted others to in¬

.40

________

-

of

Scott, Horner &

is

is

a

I Vim-

.leaving a total of both classes outstanding of .1,354,089. At the time

Southeastern Telephone Co.

above

h'«h?
repre¬

-

compared

Virginia

Among

.

have

During 1956 the Trust has re¬
tired 27,500 sub-share certificates

Alabama-Tennessee Natural

;

and

$7

2,351

Both

f

au-

Interest $100 Par-

Total

Products, Inc.

2.80
,*

sell¬

of Prop. Interest $1 Par_L

Control

Theatres,

every

downward

*

re-

$9.80

of

stock

Dec.

Air

income

S3,850,000-.

or

income tax

$560,000-.

for long term

*

all-time

Ctfs. of prop.

times

less

promise of further inflation, I

know

weapon

Outstanding capitalization,
31, 1955, was:

•Liiiiioiw

10

certificates, and the

ent

•

bigger doses

New

19 tutor St., New York 6, H. Y.

;

tale.

a

management

-making

by delay rentals. Consider¬
ing this, plus the dynamic growth
of Texas, the constant retirement

inflation hedges.

1

5

of

capable

,

'

held

roval ties both classic

Exchange

per

value is given to the huge roy¬
alty-potential on the 386,928 acres

deflation.

Pacific

$5

and'therein lies

National

no

lead

proximatelv

Memoert

year,

.

STEIMER, ROUSE & Co.
Members

■/,

$385,000

hand

on

The

as

an

Texas

Members

American

at

of

value
'•

opinion,

tend-

flation-type

S.

come

Harry

Bought-—Sold—Quoted

,

Inc. ,-?i Paul

Rox.y"Theatre and sale of other
.theatres and real-estate resulted

$6.60

Interest

Estimated
serve

With this in mind, what better
purchase is there than a pure in¬

gj

Theatres,

Per Share

land

Total

any

combat

ing

New York Stock

Louisiana Securities

Trust—Ifarry

Morton, of Peter P; McDermott
& Co.,'N"cw
York*City (Pajje 2)

hundred

,

of

minimal

a

Cash

reces¬

inflation

National

the citv

acre in the near future,
10 months ending Oq-

Capitalized at

cer-

to

I

a.

•; >,•-

Miller, Partner, Nugent &
Igoe, East Orange, N. J. (Page 2)

point only
large - TPL

worth/ several

value

Royalty

.

t

SCRIP

from

acre i

to

of

js
jf

Land

D.

Valuation

seems

us

heavy
sionary

Since 1917

at one

.Summing L'p

market

encies would

if

Pacific

Alabama &

*

-

Approx.

uing inflation.
Price-wage in¬

in,

A

Selections

ln
a
For
capital gain of $2,940,000 or
t<?ber.
£ross receipts-^were $1.09 per share for a total net
income oL$1.72 per share for/the
about $197,000 over last year.

are

1-40

t

be

d°Hars per

presents

fear of contin¬

Cities

eastward and
now

miles

will

-

has

stay, and

RIGHTS

v

from

with

f| Specialists

v

.

in bonds is the

FRANCISCO

Principal

r

following the

Exchange

CHICAGO

•

Texas

nor

In my

stocks

Teletype NY

PHILADELPHIA

Trust

prevented-

1920

Member

V

Their

*

3, 1957

Week's

Participants and

holding of rover 12,000 acres... It
istiuite conceivable that'tlifs land

.

.

Broadway, New York
BOSTON

be,

to

sell the securities discussed.)

to

three

r-

-Exchange

the
big factory

one

Corporation
WOrth 4-2300

i

market

arguments

which

Stock

c-

opinion,

New York Hanseatic

Associate

Land

present

timists.

American

,

York-Stock

perhaps more
convincing than those of the op--

»

Established

'

particular security.

a

intended

not

are

has spread
limits are

uncertainties, and the bear-

many

"Ilali-

too.

v

Members New

reliable executions they
-

offer

as an

MILLER

D

Partner, Nugent & Igpe,
East Orange, N. J.

of "Han-,
trading depart¬
provides the kind of
:

be regarded,

to

HARRY

e\|w*rience

like.

This
Forum

Thursday, January

.

of the

better, markets.

too,

they

are

.?

large

accurate,

for favoring

reasons

(The articles contained in this forum

nation—assuring them of broader,
and

Besf

Security I Like

participate and give their

/-

know

and

Camnjyrcial and Financial Chronicle

A continuous forum in which, each
week, a different group of experts
ia the investment and advisory field from all sections of the
country

Try "HANSEATIC"
Ami

The

336

National Qootation Bureau
48 Front Street

New York

4, N. Y.

f

Number 560,0

185

Volume

j

I NDE X

The Swoid of

B. S.

/ Page

Articles and News;

-

•

s

By BRADBURY K. THURLOW

4'V

AND COMTAXY

'

^

c

:

^

Partner, Osborne & Thurlow ;

*

v,

Exchange

Members, N. Y. S. E. and Ameriean Stock

,

Policy^Roy LI Reiersori

Outlook for Fiscal and Credit

.

'

;

•

Stock Prices During

Cover

A ROLLING STONE

Inflation—John M. Templetomt-_Cover ^

policy via higher \
TheJSword of Damocles—Bradbury K. Thurlow__/„____.._.;__
3
//■/
interest rates-is fraught with serious inflationary implications - >
"Growing Boeing—Ira U. Cobleigh_
4
in view of $56 billion of government redeemable-debt held
by individuals,-who may decided to shift* into higher , yielding , ,
Tight Money: Cause and Effect, arid Outlook for Money Rates
*;
—Raymond Rodgers
6
outlets and confront the Treasury with a major problem of :
raising funds from the public without resorting to direct and
/
Tphe OutlookTor Business—Philip Wernette___L__L______^____
7
violent 'inflationary measures. > Mr.: Thurlow believes, under
>
Earnings arid Dividend Outlooks-Charles -A/ Schmutzlij*:/Lb. ' 9 today's conditions, jthat increased y-costs inducesincreased
demand and, thus, "one might argue that the Federal-Reserve
.
" Direct Instead of Monetary Attack Upon Wage Inflation-r % ' Murray Shields
;
11 *
has actually increased rather than restrained the demand .*
/• ""/*•/' "
r
"V '/■ v*
S * •>
/:■ 4".
v V/
>*•'
Displacing the Typist—Roger Vf, Babson___
_lvll *
;/;'Vc.7
; . for money.* V;..-/!.,
/ •
Security analyst concludes credit, restraint

'

Gathers

no

See

c&sh

no

for

today

us

quick

'

moss

obsolete

An

____________

•

3

(3)

Chronicle

The Commercial and Financial

.

..

.

sales!

!

■

*

v.

-

v

)lete Securities Dept.
NEW YORK

WALL STREET,

99

WHitehall 4-6551

Telephone:

•

.

-':

'

.

.

.economic' about 5V2% over 1954. For 1956
tell you *; the rise is-about 16V2% to over
that rising interest rates ace de-/ $34 billion, and preliminary estiTlationary and should in the long - mates coll for another 11% in¬
crease in" 1957. New financing by
r ;u n
exert
common stock issues has fallen by
>
d o w n w a r d
Talk

almost

to

•'classicist?

'o

c

on
and

almo.st

-

-

.

>■

tors, whatever
i

/rose
•

would be slow

accepted

dogmatically in our

as

as -was

age

and

after a rise of

>

billion

prescience

that the //
prove misOne may

Members Salt

1

by

Teletype NY 1-4643

Exchange Place

Jersey City

19

.Marcus Nadler

Stock Exch.

Broadway, New York 4

DIgby 4-4970

14

International Crisis and U. S. Economy Analyzed

Lake City

i Spokane Stock Exchange

^

Ahead

Tight Money

of

Paradox

J.F.Reilly&Co.,Inc.

?
10

Indicates Good Prospects

Commerce Department Survey

of responding period of 1955.

times. There is,

Economic

42

com- •

the cor-

pared with $3 6 billion in

I

10

;

:

nine months of

of

the

oracles in earlier

Francisco and Los Angeles Exchanges

i

.Objectives

$4.2

URANIUM

STANROCK

8a

J. O'Leary 10

Guaranty Trust -Co. "Survey" Discusses a Clash of

prevalence

the

witches

increased

1956

URANIUM

/.

Pacific Coast Stock Exchange Opens Via Consolidation of San vv

1955... Business

loans for the first

concept which
is

/■-•*'/

.

Tire Investment Outlook for 1957 as Seen by James

the! first six

in

*

25.%/, in

around

Thurlow

B. K.

to challenge a

10%

about

:

months of last year

>

$34 billion)

about

at

1956

June

n n e r

misgivings on *
the subject*,

v

^•

Lucien O. Hooper Views 1957 >Iarket and Business Trend.

of

(last reported in

1954. Bank loans

MINERALS /

HOLLY

22

;

STANCAN

com¬

first three-quarters

the

below

inves¬

their

the

1955 and 8%

in

RADOROCK

International Trade—J. H. Clifford Johnston______ 20

£

URANIUM

FEDERAL

/*'•F

Savings Accounts

____: 19

Social Insecurity—Waltef Sonneberg
:/■ //■

period

parable

lieves this arid
most

first nine

above

22%

about

is

on

URANIUM

PACIFIC

17

___•

•r—William J. Field
/ Restoring
-

be-

Bate Policy

Small. Commercial Banks and

(about $6 billion)

months of 1956

Board

obviously

Velocity Inflation—Leopold Kohr_____i__

1955, while

in the

financing

bond

pric e s. The*
5 Federal Re-:
serve

-URANIUM

12 '

Automation—Malcolm P. Ferguson. 15 ;

Industrial Progress Means

,

third (to about .$1.6 bil¬

a

estimated) .since

lion

odity

m m

FrankeL_Ji-i

.Utility's JFMture—Herbert R.

will

jpressure
stock

Electric

any

he

and

FOUR CORNERS

HE 4-3634

•

Wires to Salt Lake City & Denver

however, strong evidence

concept

whole

may

taken.

ceived

ideas

one's

Whatever
may

on

*

Oration

„

'

review briefly

First let us

general terms what has. been
it has succeeded to

done and how
date.

■

1955 the Federal Re¬

early

V In

an

by

disturbed

Board,

serve

creasing evidences of

accelerating
via

v

inflation in

to

and
corporate expansion

more

cost

expensive to.borrow. Since

Ot

~

the

money

Mutual -Funds

must

months

needs.

their needs, the

When

(or

cajj

w^|

else

whatever

Herein

jt).

one

one

,

find

look

the trends of borrowing,
we see that instalment
$31 billion,

now

at

over

has increased about

35% since the

beginning of 1955
during the past 12

months. Mort¬

gage

are

family
billion,

loans on one to four

properties,
still

at

rising

about $97
at

rate of about $11

a

billion annually.

expenditures

Business

record

near

on

argument.

.

at

The Market

least

or

.

.

.

and You—By Wallace

serious (if yet

Avildsen Tools &

I Like Best

The

Security

The

State of Trade and

2

—_____________—_

__L__^

Industry

Washington and You

new

page

General Capsule
H &

PREFERRED STOCKS

Reg. U; S.

Spencer Trask & Co.
Members New York

BROAD

Stock Exchange

ST., NEW YORK

HERBERT D.

WILLIAM

!
.

•

NaahvilU
•v.

Boston
•

TELETYPE N. Y. 1-S

•

TELEPHONE HA nover 24300

•
•

.

Schenectady

Every

vertl&ing

pie tie

Chicago
•

•

•

Glens Falls

stare

Worcester
-

and

city

Other

Chicago

vV

to 9576

_

SWBLRT,

3,

111.

etc.).

at

the

post

under tl?e Act 0{

'

_

_

.

office

at

Laclede Steel

,

in

Mid Continent Uranium

New

March ft, 1879.

Seneca

Southland Racing t
.

_

U.

of

Union; $60.00

Dominion

Canada,

States,
per

$63.00

yedr;

per

clear'n8»- '

.

..

..

Other Publications
Bank

and

QuotatloivwRecord

.

in

year.-

Note-On account of

(he

I9tnmr
f8alTe 'gt'.1, ^ert?tr
(Telephone STate 2^-0613); be - madr

exl.hansei

Airlines

Van Camp Sea

the floctnaUon. In

rem,ttancCT t„ ,0^

iffi d"«rv«r«8femdn€rmust
In New Yorlc funds.

Food

General Investing Corp.

Monthly,

extra.)

H'toiv

T.M.T. Trailer Ferry
Transocean

v
—

$40.00'per year. (Foreign postage

Oil

Security Nat'l Bank of

8.

and Members

Pan-American
of

^

*

United

Territories

~

"

Latrobe Steel

Subscription Rates
...

Machines

-

Ling Electric

Other Countries, $67.00 per year.

issue-—market -quotation
neas.

1942,
Y

Subscriptions

President

bi"lk'

-

.

second-class matter Febru-

as

Possessions,

Thursday (general news and adissuei and every Monday (com-'

statistical

-




N

SEIBERT, Editor Sc Publisher
DANA

25,

"

Thursday,-Jam-3,. 1957

*1,

"

ary

York 7, N. Y.

:

'

4, N. Y.

Reentered

^

_

.

B American

Hercules Cement New
Ideal Cement

Company

COMPANY, Publishers

2-9570

'

Eng¬

Copyright 1956 by William B. Dana

Patent Office

Park Place, New
REctor

Albany

X

.

DANA

B.

WILLIAM
25

25

and

COMMERCIAL

i The

E. C.

Drapera' Garden®, London,
land, c/o Edwards & Smith.
1

'Published Twice Weekly

i

G. M. Giannini

this week.

^FINANCIAL CHRONICLE

specialized in

'

Electronics Associates

.

have

M New Pfd.

Equitable Credit Pfd.

40

22
v

For many years we

a
.

Bymart Tintair
f
Douglas & Lomason

5

______

*Column not available
on

interest

Anschutz Drilling

undiscovered)

Continued

an

making

Aberdeen Petroleum

16

Streete__

are

r

23

—

have

trading market in:

34

___________

—

We

30

Bassons Industries

is it possible that the Fed¬

in 1955 rose

39

—:

,

eral Reserve has committed a far
more

Corner

»

16

—

monetary objectives to

ment of its

**

plant and equipment

*

ineffectiveness in the accomplish¬

date,

Salesman's

Direct Wires to

,

Philadelphia * Chicago • Los Angeles

—

———

____

Prospective Security Offerings.

Securities

demonstrated

Having

Teletype NY 1-1825 & 1-4844
-

_______

_____

Registration..^

Securities Now in

;

and over 10%

5

Reserve

Federal

actuaiiy increased rather than

main

__L

Report

40 Exchange Pl.r N.Y.

HA 2-0270

25;..

Securities

Railroad

this is beside the point of my

credit,

1

May.;--—

Wilfred

INC

18

Securities,.

Utility

Public

restrained the demand for money,

.

however,

the

that

argue

v">

37-^

.

Governments...

on

Reporter's

Our

might

sible ,to
at

6/

'L^-_-——-——---——-----------1

Reporter

Our

an(j one has a boom or

inflation

imposprice. If we

Exploration

iuf

least in ap-

at

pearance>

has become almost

Ferry

38

_____

Observations—A.

needs themselves

increase,

to

start;

Activity^li..

News About Bank and Bankers,!

anticipate

masse

en

NotOs

NSTA

today, he
-

the small borrower,
at any

his

anticipate

businesses,

;•

least, for

he

six

m0re

lya^hington Ahead of the News—Carlisle Bargeron_i _i> -

Indications..of Current Business-

-

;

wjjj

2I

__

if one

Thus,

something

that

from now than it does

rediscount rate has
doubled .(1 ^% to 3%),-the, yield
On Treasury Bills has tripled, and
then

further.

increase

^nows

difficult and

more

money

believe the. cost is likely

demand

borrowe^ iponey, decided to

make

From

the

if those responsible for

larly

in¬

TMT Trailer

1" 8

IL __

Prospects for •1957""_i_

"Britain's

Einzig:
•

growth of consumer debt

the

brings about

40 /-

Field___

Recommendations. ___ j

Dealer-Broker investment

Pacific Uranium

28

Bookshelf__i.l

Man's

jack & Heintz

17

_j__

demand,;.particu¬

in

increase

Cover

:

—

Stocks..

and Insurance

Coming Events in the Investment

accepted in orthodox eco-

the cost of something

;r/:?

(Editorial)

It

See

Business

circles) that an increase in

nomic

We

Bank

^ conditions (although not

and

c

in

-■

Regular Features
VAs

1*3$ brought about the results the
Federal Reserve was hoping for. I
believe it is <axiomatic under to-

deserves

dispassionate consid-

and

serious

.be

evidence

this

subject,

well ask whether the

policy of making money more exthis pensive has reduced demand or

precon-

.*

Members-

American Stock Exchange

4

The Commercial and Financial Chronicle

(4)

assuming

full

„

five years ago. Thus our best hope

production

scale

for * peace

targets of the B-52 and the KG135
(and
variations
ofijtl
are
By IRA IT. COBLEIGH

.

Economist

s-Lnterprise
Enterprise

takes

lot of much,

whole

a

Just

—'

fp

:

-

i

'

fice

•

Boeing,

order
you

a

must

understand

attention

life and death.

off

come

World

been out¬

has

B-47

to

a

matter

Air

Air

include

of

Lines

Lines.-

tions of this

very

in Boeing have
well indeed.- Gen¬

we

" them

powered

well

may

varia¬

by

benefit

quite

There

of

6,666,688

are

Boeing

«

the

York

New

Stock

bias

members .of

Street,

Pacific Coast

and

Bellizzi

Exchanges. / Mr.

recently
&

S.

J.

been " with

Co.

i

.

Craigmyle, Pinney Branch

.

BEACH, Fla.—Craig¬

DELRAY

FRANCISCO. Califs-Wil¬

SAN

Friede is now connected

with Sutro & Co., 460 Montgomery

myle, Pinney & Co* has opened a
branch office at 704 East Atlantic

Street; members ol the New Ydrk

Avenue

liam

M.

Pacific-

and

changes.

He

Ex-' Roger E. Montgomery.
formerly, with Santord is associated
new office as analyst..
/:;1:

was

'

Reynolds &. Co.

of

the: direction

under

Stock

Coast'

Stephen J.
the

with

.

We

pleased

are

that

to announce

Robert C. Porter

;
'

has become

common

Partner in

a

firm

our

listed

our

:

BROADWAY /

65

.

F. Eberstadt & Co//

;

-

January3^1952j>;i

V// /
'• / J

*.

'

;/

•

-

i

NEW YORK 6, N. Y.

/

'

"

•

>

-

-

■-

f

■

.

't v :lt<

1

.

—

months away.

strategic bombardment aircraft in

............./;/ 1/../-LV'/.:;.

fiscal

'

•

.

.

(t

v.

•/

reft/r.trJrttl fa

cvtt/nat' fee -

.

fafvt

»,

.

T

-

I

Henry.W. Putnam

ending June 30, 1957;"
with vast provisions for naval and
year

Out of that model
Here," then, in general, is the
military aircraft procurement run¬
3-47, work horse of the-- product program" of this renowned
years
into
the
air frame manufacturer.
As you ning
future, a
Strategic Air Command in i the
bearish viewpoint about aircraft
field
of-medium
bombers,
and can readily perceive, the company
equities
seems
' most
illogical.
principal present toter of atomic i has, for many months, been in
Whereas
many
industrial
com¬
bombs.
But of all our technolo¬ rather of a period of transition—
World War II.

i

i";

"

fata fae/i as/nit/fact fa

-

j

.

.

grew the

.

gies,
aviation
stands
still ; the
least, and the B-47 is already
moving toward termination of its
production, giving place to an¬
other Boeing leader, "the"3-52, a'
Stratofortress powered
by eight

As

$1

this

manu¬

transition,

sales,- which
1954, fell
to
$850
million for
1955.
decline in net profits - was

back

(The

aircraft
production program ever under-,
taken in the U. S.
Current deliv¬

of

exceeded

the

single

result

facturing

jet engines. This B-52 represents
largest

a

model

billion

in

look

Indeed

offer

can

growth

a

in

1957

of

more

than that of Boeing.

Whether

we

•n// /

;,

;'; Odd Lot Dealers

bright; and few

vista

like

in vnPJfant

63

WALL

the Sew York Stock Exchange/

on

STREET/NEW YORK 5, N. Y.

/•

9

(

financial
*

attractive
;

it

£slt,rfatcy±/tyo

DE COPPET & 1)011 EMUS

major aircraft manufac¬

is

turers

only

about 5%, however.)
For
1956, it looks as though sales will

for

'//</<'?<i/

;

phasing out of production in passe panies can perceive only,: slight
of
larger
earnings
and
models, and upcurving production hopes
in the newer and more functional higher dividends for 1957,,the out¬
craft.

or

.

not,

;

-

;

/

/* telephone digby 4->000
/':

january t.1657

'

^

''

,

our

Federal

budget, postwar and for
eries of about seven units a month recross the $1 billion mark, and years ahead, has been character¬
ized by heavy military expendi¬
are
expected to treble by mid- probably set a new record of gross
tures;
and: unfortunately,,.,;the
J958.
Present schedules project earnings.
For 1957, we should dawn of the New Year
brings us
the delivery*of 60(1 B-52's by 1959. expect sales to top SIVa billion, no nearer to peace than two or
i,

january

-

/

/

We

'

consolidation of

f

our

>//; /

are

pleased to

announce

the

.

businesses to become effective

/

/

•

-

.

5

:

J/
:

T ay

lor,

Rogers

&

<957

...

January 2,1957

under the firm name of

<•

Announcing

/

;..

v

l/V;

Tracy

N.
1

INC.

CO.,

8c

RUSSELL

'/ members new york stock exchange

" '

and

;

other

exchanges

principal

/ -1 /

.

.

/

.

(NCi

•

.

•

-

•

•

■

MEMBER OF MIDWEST STOCK EXCHANGE

TELEPHONE

•

105 SOUTH

Union

Commerce

FINANCIAL 6-1030

LA SALLE

Building
CHerry

-T

-

-

-

CHICAGO 3, ILLINOIS

•

TAYLOR & CO.

.

Ohio

14.

Cleveland

1-5050

STREET

*■": '

t

/

-.

'

"

-

.-

ROGERS & TRACY, INC.

r

uklder

this

NEW

NAME

we

CONTrNUE

the

investment

—

106

Sooth- tarSaReiStteet

Chicago 3

December 31,1956




-,-v

120 South La Satte'Street

Chicago 3.

;

bahking.xnd
'

* '
brokerage business

*

.

-/

v under

the

name

of

gottron,^

t

-I
formerly conducted
.,

-

.

Inc., 265

Walston & Co.,

Montgomery

/J/';;//./A-

FikWoai Chhoniclk)

(Special to The

■'/

hand¬

common

/

A.

Joins Sutro Staff

•

tion.

which Braniff has or¬
shares
dered for 1959 delivery; and the

this

staff;of

.Strauss

somely in the long run, from this
current frugality in cash distribu¬

basic KC-135 design
model

a

by Boeing.

dictable; and patient shareholders

Trans-

and

Further

f

—

Joseph .BeJlizzi: has "rejoined /the

may.: So Happy New Year, and

bird's-eye introduc¬
N. Y. S. E.
The price range for
topic for today, we'd International, believed to repre¬ 1956 was between 45 % a nd 65
%
sent the longest fange and largest
like
to
paint
a
brief,
albeit
with current quotation around 61.
sketchy, - * portrait
in
financial capacity commercial transport jet At, this price the shares sell at
All this suggests a
prose, of Boeing
Airplane Com-." developed.
about 11 times indicated earnings.
broader diversity of future Boe¬
pany. Now in its 41st year, Boeing
If per share net as high as $7.50
is' not
only the largest aircraft, ing sales, which, in recent years, should be realized a
year hence,
maker in the world, but has-ar-; have been almost entirely to the
and, the 11-times multiple con¬
rived at that'status by dedication military.- //>■--Vv
tinued, /you might conjecture a
Then, of course, major aircraft
to:the development and produc¬
Dec; 31 r 1057 -share" market' price"
tion ; of * larger
type / transport companies today are all'intensely' of
82^; but. this Is pure "crystal
interested in missiles.
Boeing is
planes for both military and com¬
gazing.^/:://:;y/: y.
mercial ~ flight.
Its;4 backlog
of; no exception. It has. developed for
The favorable consideration of.
orders* today is a
staggering $3 the Air Force an antiaircraft
any aircraft equity at this market
billion, up from $2 ^ billion at guided missile, the IM-99 Bomarc.
It's a supersonic ram jet-' sort of stage .depends on your viewpoint.
April 1, 1956. ; - ' With an enlarged Federal expend¬
;Before, looking at
future ele¬ rocket believed to be remarkably
iture for military-account defi¬
ments of production and profit¬ accurate within a range of several
projected: tn the next1 12
The design and nitely
ability, some reminder of earlier hundred miles.
months; with a huge sum—$8J4
Boeing prowess and prestige may testing"stage bf" Bomarc is now
billion
earmarked
for aircraft
be in order. " The
29 or Flying pretty wcll along but actual vol¬
and
missile expenditure for the
Fortress was our most renowned ume
production
is
still
many
With

tion to

(special to the financial chronicle)

%SAN FRANCISCO, Calif.

keep

might regard the. current cash

turbojets,

>

-

'em . flying — the Dove pof
eral policy in past years has been" Peace,
aided ? and
abetted *by
to
distribute* about one-third of bombers
and
missiles, many of

1959.

American

it

not only be exercising pru¬
dent
investment
judgment,
but
may

giving

stockholders

term

who

•

to

as .>»

;

.

Long-

so

these by

cannot pos-

we

sibly
achieve
those
objectives;'
With aerial; prepotence,' however,

Not only that-, but
payout as a bit on the meager side
cele b r a ted a. commercial type adaptation of
shjpuld take note that very .sub¬
the KC-135"
(also
celestial car¬
propelled by
stantial retention of earnings Is
rier of the J-57 jet engines), the 707 Stratorequired to finance the present
olive branch, liner, is
being exceedingly well
expansion, program which, in the
are still
that received by major air lines. JHiis
three-year period, 1956-1958, is
b i r d's best swift
super
transport -Wi^r cbst.
expected to call for a. total outlay
friend. So if a about $5 million.
One- hundred
of $100 million. On completion of
dove happens and
thirty-six • Stratoliners* are this
plant addition and improve¬
to flap into a already on order, for delivery late
ment, a new and higher level of
brokerage of-"' ib 1958 to eminent clients, includ¬
earning power seems quite pre¬
few shares of; ing Pan American World Airways,

U. Coblelffa

<.

bigrger

prospective:

and

present

KC-97

with the

missiles,

craft and

course,

shareholders,

has the piston-engined net in cash dividends. There was
StratofreightCr. (both
a
also a two-for-one stock split on
transport tanker useful for refuel¬
Aug. 6, this year, and a 2<& stock
ing in flight, and a cargo plane)
dividend, payable Dec, 17, 1956.
been displaced by the newer jet
Regular cash dividend of ;$l is
and
guided propelled KC-135, chosen as the
handsomely
covered
by
a
per
missiles, much standard Air Force jet tanker. The share
net, which should exceed
as they eonfirst unit of this model came off
$5.30 this year, and possibly move
trast, in de¬ the line in July of 1956, and plans
up to around $7.50 for 1957. Those
sign and pur¬ now call for delivery of 400 of
pose,

Ira

the

as

moded,

bigger and sturdier flying
things than the Dove of Peace to
keep said bird alive and volant.
;
'
'//_ Things such as
B-47's, B-52's
faster,

the foregoing is, of

All

of intense interest to

-•

•

It

...

,

Rejoins

Staff of Wakton Co.

aii*-.

retaliation. ': Without

' assure

-

,

.

biggest aircraft manufacturer in America gets
its earnings' outlook gets brighter.

The

*k.-Z

Thursday, January 3, 1957

.

.

ft. J/Bellizzi

is still "military might-

both to discourage.aggression, and

.

attained.

.

russell

6r

• -

.

co.,>»nc.

;

i
*

-

135

Volume

Number

5600

.

Fiilancial

The Corrimercial and

...

level of

priced

Steel

»

Production

State of -Trade

t

7

and

*

Business

As

.

ket. with the Dow Jones Average
at double its ;1953 level entailing

...>

v

■

Claims for unemployment insurance by newly laid-off work¬

;

than 24,000 to about

288,80Q during the week ended
Pec. 22, according to the Burea-u of Employment Security:
\
This was about 7,000 above the corresponding week of 1955;
when the total 'was slightly over 282,000.
,7 " Y Y T'.i Y
t
At the same time, the Bureau said the number of workers
already drawing unemployment insurance under Federal- and
state programs increased by about 60,300 to 1,222,000 during the
rose

ers

more

vulnerability to any overvaluation
(4) Delays involved in the acti-: and external deteriorating., )
custom-at New
list ob-; vation of government pump-prim->
jectiyely without editorial empha¬ ing should "it be .found necessary;
With the assumption that & net
sis; the ten leading "bullish", and exemplified by the tardiness re¬ conclusion from the conflicting
vealed in the effectuation of the
/'bearish".fac- '
v* :
economic,, business,; and political
mulU-billiprt-dollar national high¬
tors
relevant
elements constitutes
imponder¬
to
1957 busi-7
way program passed by the Con¬
able, we might deduce from the
gress last June.
ness- and
the
market elements while there may
(5)
The credit- squeeze; with
stock
market.
Year forecasting time, we

.

py 9%.77r- ''v.:77".

year

so, we

tain

caution

t h

,

-The total for the like week

about 1,089,000.

f',

;

In the steel industry this

metal working

reports

weekly,

r

that

^

will

steel

.

,7

/to keep up with demand during 1957. The mills will set a new
production record as much as 3.000,000 tons better than the 117,-

000,000-ton mark established in
"Iron

An

Age"

of

survey

1955.
major

(7)

and

correspondingly

spending and stepped-up foreign aid, it continues.

lowing hereinafter).

"

,

"

;

change,

•

•

-

Specific

(1) ' Rising
national
output,
likeiy to be reflected in a Gross
National Product. rise of 47o to

means

Hedging against coming higher steel prices will
pressure but not so much as in previous years. .' YY'

explosion.
Some
:

'

The

overs

in

New Year with

mills enter the

steel
most

heavy

very

$430 billion.

add

Stock Market Factors

Higher personal consumpgeneral non-residential
construction expenditures.7;. /

tion

carry¬

The situation is particularly em-

major products.

problem is worsening rapidly, it adds.
The

"Iron

industries and

Age"

nine

covered

survey

enjoy possibly the second-best year in

eral levels. 7

his¬

in

billion-dollar year

a

row

and

1957 may top $1 billion

•

expansion and exploration compared with
$6,000,000,000 last year. The Suez crisis could push 1957 spending
even higher .than expected, it
States^.. r *
«
:
;
After weathering some rough years,
coal is on the move
again.
Stepped-up domestic anu export demantk forecasts con¬
sumption of 461,000,000 tons this year compared with 448,000,000
tons in 1956, according to this trade authority.
In

the

aircraft

industry,

000,000 year compared

manufacturers look

WE

ARE

to

value criteria,

FORMATION

THE

boom

/

OF

-

OF

JANUARY

SUCCESSORS

TO

THE

1,

Members New York Stock Exchange

CINCINNATI

NEW YORK

justified

be

er

Lewiston,Me.

Hartford, Conn.
January 2, 1957:

*

'

by

quan¬

We

wish to

^

WARNER
»

''•L'V

/;•

under any

intermediate reactions.

..

-,1 '1

of

to

become

RUDOLPH

ROBElfT

-

MEMBERS
NEW

YORK

STOCK

EXCHANGE

AMERICAN STOCK

EXCHANGE

(2)

of a down¬

activity, despite the
a favorable compar¬

record

The

for

the

outlook

residential

entire

year..

building,

sectors,
and

new

wall street

TELEPHONE:

BELL

SYSTEM

BOWLING

TELETYPE

NY

GREEN

1-3897

york

5,

n. y.

as

&

NY

automobile pur¬
the gener¬
ally continuing expansion in in¬

chases, combined with

(3)

1-3898

t

j,*.

^

<

KLUSSMANN
NETTEL

G.

CLAYTON, JR.
FITZPATRICK

have been admitted as

General Partners

*

WILLIAM F. BOHNER
has withdrawn

as

a

General Partner

The indication from recent
of a likely falling off in
spending for new plant

Orvis Brothers 6 6
Established 1872

Members Tiew
and

>

Tori( and American SwcJ{ Exchanges

principal Commodity Exchanges

surveys

business

BRANCHES

equipment after a bulge in
months.. The vulnerabil¬
ity of presently contemplated out¬

14 Wall

Street, New York 5, N. Y.

and
BINGAAMTON.

N. Y.




—

CLEVELAND, O.

HARRISBURG,

PA.

DEPOSIT,

N. Y.

the early

change in underlying
conditions or psychology.
lays

to

a

/

in

ventories.

9-1850

■ j,

possibly

disappointing
44

4

for lower ex¬

penditures in some
Investment Advisers

«

General Partner
Limited Partner

a

H.

J.

;,

.

a

W.

EDWARD

ORVIS

D.

•;

reversal in the trend

likelihood of
ative

*

as

INFLUENCES

The possibility

a
business

*«.

has retired

as" cushion *

functioning

ing;.) all

marking
*

'

'

the following changes in our firm;

announce

turn in the indices-after mid-year

GAMMACK & CO. and

COSGROVE, MILLER & WHITEHEAD

'

7

,

(ex-"infla-

and general favoring of
equity, versus fixed-income hold¬

(1)
-

O. Dayton, 0. Easton, Pa.
Lexington, Ky.
Portland, Me.

Biddcford, Me. Burlington, Vt. Columbus,

pressures,

"BEARISH"
OF

Boston

Baltimore

Philadelphia

including long-term earn¬
ingSj.* asset
value
and
growth
prospects.
"(10)
A
continuing long-term 7

1957

BUSINESSES

->■

EstA III ISit IJ) 1886

their

EDWIN
AS

*

tion")

.

Cosgrove, Whitehead & Gammack

firm ^

JF. E. BUTTON & CO.

other

;fise in the popularity and price
of equities,
based on secular in¬
dustrial
expansion,. inflationary

ANNOUNCE

TO

27

7.V1.. 4'.

;"

(9) The availability of a goodly—
number of issues at prices that*
titative

page

7 vv ■*

Market Factors

Stock

Specific

appear

on

General Partnership in, our

;

a

Backlogs are

Continued

PLEASED

by

for an $8,500,-

with $8,300,000,000 last year.
„

,

,

,

'

/'

-

sweeping vote of con¬
Admin¬
istration, with its connotations of
"good will to business."
(8) "Inflation," with a further
price level rise of at least 2% gen¬
erally predicted for 1957.
and

will spend about $6,-

,

.

has been admitted to

fidence, of the Republican

300,000,000 in 1957 for
,

?;

ERNEST e: 7

fillip to inflationary spending for
military and foreign aid purposes;
(7) The continuance in office,

5% gain over 1956.
Spending for new plants and equipment is expected to approxi¬
mate $37,000,000,000 or $2,000,000,000 better than last year's record-

i

that

announce

;

(6) The Middle East and
international
crises;
with

equipment the outlook is for a

Continuing, it declares the oil industry

,./

ment and manifestation of a

last year. Appliance makers, too, are predicting
gains of 307c over 1956 with the consensus 107c. ...
/

breaking $35,000,000,000.

pleased to

.

economy.1

over

farm

■

i

may

bigger margin than 1956, which set a new peacetime record
for both orders and shipments.
The United States Department
of Commerce forecasts new construction spending of $46,500,000,-

In

arc

:

tion;

a

000, up 57c

/

(5) The prospective credit situain that the current squeeze
get ameliorated, or at least
continued only as the accompani¬
:

Auto people are talking about 6,500,000 cars and 1,200,000
Machine tool builders, it states, are shooting for their

second

.'

(4) Increased
government
spending at local as well as Fed¬

trucks.

by

We

•

steel-using

important

7

plant and equipment.

breakdown of their, outlook shows that the auto¬

a

motive industry will

tory.

'

."

7;

January I, 1957

_

S.

Inc., Tower Building.

and

(3) Managements' indicated con¬
tinuance
of
liberal
outlays for

__barrassing in plates; structural shapes, seamless pipe, linepipe and
hot-rolled sheets.
In plates, seamless, and .linepipe, the supply

F.

with

affiliated

Yantis & Co.,

The current possibly over-

-

-(2)

-

(9)

become

has

-

strong demand to keep production lines
rolling, but it also means that steel users will be battling to re-,
build inventories against the possibility of a real international
This not only

;

ELGIN, 111.—Woodrow H. Boyer

<

>

to

F. S. Yantis Adds

forces.

,

admitted

been

(Special to The Financial Chronicle)

.fol¬

INFLUENCES

"BEARISH"

-

general partnership in the firm.

earnings and dividends

on

has

3.4%, Tlie resulting

counteract inflationary

could

under

numbered

I

that Henry W.

announce

Putnam

"brake"

FACTORS

"BULLISH"

' ■''''

Coppet & Doremus, .63 Wall

De

to

(Please note the paragraphs as

performance
•
:'' t -'

long-term. ; V
'7;'

Street, New York 5, N. Y., mem¬
bers of the New York Stock Ex¬

from; 3.57o

1

ing companies expect to do as well, or better, than in 1956, On
top of this, the blow-up in Suez will mean all-out construction
of oil tankers, record drilling in the oil fields and higher defense

gener¬

Coppet & Doremus
Admit H. W. Putnam Y

(decline

margin

profit

a

•.

The

1956

6f

De

inter¬
national strife is "bad for capital."

performance,
the
political,

industries

J

the

occurred.

Most metalwork-

points to another banner year for most of them.

constructive

traditional assumption that

the

steel-consuming

ally
over

other

the reassurance

comparatively defla¬
tionary tone of a Republican Ad¬
business
ministration. The apparent elimi¬
events will
A. Wilfred May
nation of hopes for tax reduction.
chiefly serve
(8) Profitless Prosperity.
The
of the market's
as
explanations
likelihood that higher wage and
performance after it shall have
other
costs
will further extend

hard-pressed

be

miningmarket

economic,

national

"The Iron Age,"

week,

ago. was

1

•

.

year

a

with

tension; with the immediate im¬
pact of Suez on Western European
business and finance, and with the

deter-

a n

re¬

adjustment, this should be coupled

sectors.

(6> The Middle East and

readers;

our

that rathe r /

uncertainty arid

be short-term

particularly strong effects in cer¬

While- doing/,

.

'■;*week ended Dec. 15.

•

,

//"• With respect to unemployment in the latest week, it was re¬
ported that initial claims for unemployment insurance^ declined

2%, but exceeded those of last

The historically high mar-

.

-Following -our

;

;of many- factory closings and reduced out-'
„put schedules for the Christmas-holiday, over-all industrial pro-'
duction for the period ended on Wednesday of last week/'was. ata
moderately reduced level, but it was at the same time, well-*
above that of the like week a year ago.
:
"
•
a consequence

,

substan¬

tax-exempt

j

J10)

i

.

.

on

*

BUSINESS AND THE STOCK MARKET IN 1957

Failures

The "Pros" and "Cons''
i

the

from,

bonds:

Auto Production-LT~"

Industry

dollar

tially raised yields

By A. WILFRED MAY

Index

high-bracket in¬

the

petition for
vestor's

Commodity Price Index
Price

•

•

Carloadings
Retail. Trade

Food

high

pricq-earnings ratios of Blue Chips
and some Yellow Chips, and com¬

—

Electric Output
,

market sec¬

some

disproportionately

the

tors,

The I

5

(5)

Chronicle

C

(6)

The Commercial and Financial
Chronicle

low levels in

very

Tight Money—Cause and Effect,
And Outlook for Money Rates

pression

Contending

a

may

to

come

-a

J

what

in

be

can

which

it

is

done

about-tight

necessary.

of credit but that there is

Money

Ls

.tight

and

a

(2)

the

1%% for more than 14 years, >
jfrom October,:
'1933

t®

in

than

<•

since

Rodgers

the

the

the

for

the

demand

stagnant

in-

great

to

for

days

since 1939:

,

great increase
the end of

in

capital

both

de*.

and

,,,

•

(a)

In-total

new

from, $8.2 billion
which

is

>

~

seems.far too

accumulation,

bank

demand

in

an

to

no,

,,

of 435%.
"/

increase

new

plant and equip-

merit,, from $1.94 billion

baton, which

is

/

to

$16.87
increase of

an
-

-

-•"•*

7

•As these and
many other figures
.in the period
since the

indicate,
thirties
an

there

explosion

♦An

address

''■lichijran
of

.

has

- in

bv

Banks

Michigan, Dec.

beenfliterally,

the
Mr

demand
RodP.

Association,
6.

1956.

h

•

/.

demand

f

investment
of

-

-

1

-

,and

wa„ted

shiiiy
and
new

.

■

new

new

As

a

It

cannot

short,*

'

which

be

it

\

tqo

'

snare-

tm

hosbifals-

thine<?

able

to

not available, in

are

i we

-

-

•

pVtr all"/: eral Reserve
«,,,a-termi»ed
to

Tn

authorities,

prevent

the

de-

boom

1

^
loans

to

demanding,, rightfully
accept' humiliation
/

.•

that

so,

that it

is

inasmuch

the
^

up

%

f.

as,

United

^

-

•»

The

matter

of

..

exclusive

seem

After all, the old business of
Congress

having the 1
has largely become outmoded.
(:

power to declare war,

'.•! Mr. Truman
he decided to

gave

Congress

notice whatsoever when in 1950

no

against North Korea. And

move

as

.

reaching
of

citizens.

or

;

So members

/

the

and

more

deep-seated. Some
important effects of

the tight money
pressure
under
the prevailing conditions of credit
restraint warrant close
analysis. *

Impact on Banking:
Between
Jan. 1, 1955 and Aug.
29, 1956, the
commercial banks were forced to
sell $12 billion of
government ob¬

BANK STOCKS

ligations in order
loans

largest Philadelphia Banks

the

a

in

result,
and

so

the

far

as

ratio

possible.
of

certificates

to

As

Treasury
depbsits

has

dropped to around
1%
for
Reserve city member banks and to

STROUD & COMPANY

less

than

2%

for

all

member

banks.
Tight money has, thus,
sharply decreased the liquidity of

INCORPORATED

our

PHILADELPHIA 9

banks.

This
•

for

the

SCRANTON

decline

in

ratios

have

Continued

X

liquidity .-.and

sharp increase in risk

posit

Congress

war.

continued

leadership is giving

a

this

money

1

under few

are

But

lot of them

business

to

finance

Securities

Fidelity Building,
association of the

personnel

as

sentatives

,

.

Maxwell Brown,

the

Repre¬

Dallas

our

,

"

*

-

•

their

upon

so-called

the

global
'

■

.

With Fewel & Co.

following listed

Registered

in * the

about

calling

(Special to The Financial Chronicle)

Company,

announces

4

pause.

(iWith Franklin Sees.
Franklin

illusions
of

»area:

Marion W. Kel-

ley, Wayne H. Smith.

SAN

i
t-

Mathes has become-affiliated with
Fewel

&

Savings
merly

Co., San. Diego Trust- &
Building.

with

He

Samuel

& Co.

John

Stetson Pfd.

Pocono

Hotels

.

asset to

forced, .all

was

B.

for¬

Franklin
'

•:

page

23

Grinnell Corp.
Kalamazoo Vegetable

Reading Co. J1/^, 1995

Parchment

Publishing 3-4% Pfd.

Keyes Fibre Co.

Samuel K/Phillips & Co.
Members

Pliila.-Balt.

Stock

Exchange

Pennsylvania Bldg., Philadelphia
Teletype

N. Y. Phone
-

COrtlandt 7-6814

Continuing Interest in

Fischer & Porter Inc.

Guarantee Bank & Trust Co.,

PH 375

on

A
::

Units

Buck Hills Falls Co.

Curtis

■/

DIEGO, Calif.—Stanley M.

of

longer-term issues,
sold Treasury bills and

banks

bills

LANCASTER

taxpayers

of

declare

the sale of the
'

certificates

•

to

to increase their

by

$17 billion.
Because
substantial loss involved

the




de¬

-

bank

Trading Markets

ALLENTOWN

now

over.

Arab countries.
;

in

Consequences of Tight Money
The consequences of the
tight
money of recent months are far-

•

campaign,

d^this

PHILADELPHIA

PITTSBURGH

political

far back as Woodand prices from
row
Wilson, in this writer's memory, he moved against
Mexico, op
reaching dangerously high levels,
two occasions, and
against Nicaragua/ without any advance
apve v
which might cause serious trouble;
very ^ on. This laudable, but un^ I proval by Congress. Also, on the occasion of two formal declara¬
expansibn of^^fortunately thankless, effort mer-: tions of war, .World War I and World War II, it was clearly shown
that the President had the
its
the
active
power to bring about a situation where
and
unqualified
a mere declaration of
war
had
fallen to support of all, whether
by Congress was routine.
bankers,

Maintained in all

•

take

'In other

power

NEW YORK

a

/-/ /,;/■/ :,v'/;%-;i '-.//'
/.
jf
giving Mr. Eisenhower the standby
authority,
to .worry the
incoming Congressmen as
much as other stories,
they hear about what the Administration
in-ji
tends to ask for, such as the economic aid
program to all 6f the
-

business activity

businessmen,

Send for
comparison of 11

of

™ do this

credit.

As

Active

to

are

forced

were

midst

and

however, .doesn't

•

are

little

relatively quickly.

•

hightef

/

the Fed-

whq is.

words, our/Government demanded that Britain and
France get out of
Egypt because if might provoke the Russians to.
move in.
Now that Government wants
authority to telf the Rus-«.
sians that if they
attempt to move in, they will be resisted
by the
armed forces of this
country. Somehow, the reasoning is' that this
won't provoke the Russians or the
other Arab nations as much aS
if Britain and France had
beeh permitted to clean
up the mes?
:

the'-market

Prices, that is, inflation.
To their eternal credit,

could

Congress'

seems

Nations must settle"
matters./ The proposal
involves unilateral action
by the United States/"-' vT-/

.

cause

' There

stand that the United

the,

They / have not. reduced
b™k reserves;' on the

'arid-'new- and 1(11115 could only

of

' / But the Administration's
proposal ■ for- standby authority to
use
armed force
if-necessary, if that proposal * is ever formally*
made, if it gets beyond the "feeler"
stage, is in conflict with its

.

tight-

,

all-steel

members

the coals about

over

France and insisted that the-crisis
should be
"orderly" way by the United Nations. The British

an

French

States

emphasized

current

.and

they

would permit a continuation of
tbe exPa"sion of demand for
g°ods>raw materials and labor that

we

.

Government, in the

"handled in.

*

"

'

Our

nounced Britain

is

1 "creased
them' They have simply stopped
Increasing'reserves at a rate:which

i

wanted "to have our cake
ancbeat
- too-" Awd
for auite rf while

1^

-

authority,

French, if let alone, would have cleaned
up the Suez Qanal situation
by now, though not as fast as
they
expected, and at a tremendous cost in
damage-to the canal.
( ;

upset

has

'//

have

new'fc
houses-

schools

it

%

W

doubt that the British and

1

new

n" enougi/lo
these
Jv^e

£%

the matter qf

responsible for the Middle Eastern- situation.

"it

for. Jt/. In

tneir

...

over/the

standard of living'arid-thus

were

go

raking

money pressure is the result of
demand factors, and that the com-,

\ hiShZ

we

country will

been.

.far'Congressdm!dealing,.with this.

what I gather from (earlier
-arrivals «i)nong
the Democrats want to do
some

away"—'
seemingly insatiable

stronSlY that the

excess

Savings

^Wnted

new

'x
1

Congress should

in

"

demand

cash

mobiieS

for

University

taken

the applecart!
-

*

almost continuous

wanted

the

grant this

•

and,'the

banks-

Kitchens

/r/

The feelers have been to the
extent /
that the President will ask
Congress for stand—/
by authority to use armed force in the
event /
our
interests demand it*
If

Putting/it bluntly,
"shortage" of credit-

has

soaring demand

savings
/

'

,

no

one

but there is

-

,

,

suodIv

'

situation.

supply
side. Nor is tight
money/the -ihvention
of the' Federal
Reserve"

of

construction,''
$4.3 «
bRlon,

,j (6) In expenditures by.manutacturers for

and

supply.

run

there is

these

buUimited

3

%/

.weeks, the Administration "has
/putting out feelers-to see how

high level of business pctivity have caused demand'to out-"

Applying these nrincinl^s, sm^e
the end of World War II there has

,

.V /./

For

of

(4) The demand for bank credit
is elastic, but unlimited.

.

low)/; /;

void.;-/- ^,/'/
words,-.Russia, haying4'trouble f'
seeking to increase its T

In" other

with what it has got, is

" general

■

v

use

_

are

~

(4) In the standard of
living, an
—
estimated increase of 25% (which,

of¬

a

,

outrunning
be helpful to
principles underlying

the

an

void

a

told

*

it will

(2)
The
demand
for
(capital), is highly elastic

been

be

„

there

has

for

demands

supply,

ela/ic

will

On the other hand there

move'into /
tremendous, cost, and the
possible
of men, Russia will
occupy this

/.domain:

—

per¬

■

1954/ but

/ tal) is inelastic.

.

In the cost of living, from
index of 59.4 to
117.1, which
increase of 97%.
.

•

created,-Congress

'

disregarded//

as

and

as it did
overwhelmingly
Carlisle Bar»eron
Formosa, inf January,, 1955,, it /
; /.;.;/" > -/ U.
is expected to act as a
deterrent to'Russia. If Russia is
truly hav'
ing the troubles it* is reported to be
having/this authority would
Demand .Has Upset the Applecart
undoubtedly act as just that? On this basis/and on the
basis of thd "
- -/Even
-though' batik credit' hasauthority given to Mr.-Eisenhower in regard
been enormously
to-Formosa? it would /
expanded, higherf- /seem that-Congress would not hesitate
in supporting the
prices, higher wage levels, heavy
President
in this
instance....
' /;
• >
..'
/
/.
/ '• ' /■••,,
expenditures
for
public
works,
But the situation and
th'e.atmospherq is not the same.. From
hfeavy 1 real
est a t e$ fifiahcing,

(1) The supply of savings (capi-

an

*.j_

well

as

been

anomalous

increas-

an

in the Middle East/There

menace

f

expansion: under present
^condltions- are- being sorely
pushed.

of

(3)

obviously,

;v
bank

is

demand

then,' notonly

supply

money

(2) In personal taxes paid, from
$2.£ billion to $38.8 trillion, which
is an increase of
1517%.

is

be

most

a

one hand it faces a picture of a
Hungary certainly/unrest in Poland

in

ficially, and if-this country doesn't

remote

so

Russia; unrest1

-this void at

sav-

lenders, as well as of borrowers,
becoming of growing "concern,
And, the limits of bank * credit

is

answer

.

$27.9

in

the

of

look at

/(l) In personal income, from
$72.9 billion to $327
biflion, which
is an increase of
349%.

an

the

of

were'

ing
.has

Unfortunately,
these' .fallacies
have all*-- exploded:'; at the
/satire

the- fields". These basic
principles, sim30's. To cite but a few over-all inply stated, are:
V y
creases
in demand, consider the
increases

the .' limits

■

face

being

be

for f

,

to

situation.^n the

,

billion

credit and

are

in

The

.Kasl^1Ec01,01,,,c P^lnclPlcs /

;

Kaymoud

crease

1955!

increase

Asy the

reasons

could

returned

and reported-unrest withiri
Russia itself.
is the picture of the Kremlin

no expansion
of the money
tecord-breaking - capital ' 'expan-/
supply, it has actually decreased! sion,
vtax-payment
acceleration,'
r
^
'• "
1
inventory

more!

many

credit

expansion

they could

been

two

There

before

since
'

promises to
increase' still

^weakened

ultimate

maud* until

,

less

bank

has

plexing foreign

<-

fighting for the
Liquidity—cur-

"care

-

years and now

i

credit

billion,^and
deposits
(the modern money supply) fromj
$29.7 billion to $106.6 billion took

than

X00%

:/'

•

rent

an

has

more

miscon¬

'

time. Everyone is
flow of savings.

$6.4

Dc-,

cember, 1.947,
increased

That

(3)That

•

that an increase in the turnover of
•the money supply, an increase iri
the currency* outside banks from

t

a

•

money

came

which

t ayed

:

Congress

r.,*.

1955, and by far the greater part
of the great increase in demand

prime

rate,

*

were:

By CARLISLE BARGERON

The

true capital accumulated* by
jng. ,
..
f
A *

"

and capital. But the money,
stringency didn't start until early

to believe that

Aheadthe
of

of

money

tighter. This is a new and
phenomenon f for
most
bankers
and businessmen. It is indeed hard

%

fallacies.

permanently substituted

,-i

during the period
Emphasizes there's no "shortage"
seemingly insatiable demand for it.

getting
strange

the-'end

V(l) That

L

Washington

loans

voluntary saving was,
longer the prerequisite and
bedrock of capitalistic
progress; />

t

out

From

the

no

a

a.

at

dangerous

ceptions

.

F

bank

important of these

more

end

an

billion

to

over

fact,

mS

;

was
expected a few weeks ago," accompanied
reversal of Federal Reserve policy paralleling business :v
TL
-J
activity and price change. .The causes and
activity and pricfe
The causes
consequences or/
of /
tight money are delineated by Mr. Rodgers, who also points

by

$26

of

Thursday, January 3, 1957

.

De¬

demand
In

.

»was

expansion

of

1955.

expansion

several

"sooner than

i

until

Great

there

-

sbsoTbdd^h^ex^es^so^^mootWy

University

higher, and boom

go

excess

from

no

may

the

great

consequential changes in immediate futures is
likely for supply of and demand for money,-Banking
Professor
believes tight money will continue, money rates will remain
high and

the

30's,

sufficient

cover

By RAYMOND RODGERS*

York

the

for

supply

Professor of Banking, Graduate School of Business Administration
And in the School of Commerce, Accounts, and Finance,
New

of

room

.

»

BOENNING
Established

.

& CO.
1914

1529 Walnut Street

115

Broadway

Philadelphia 2, Pa.

New York 6, N. Y.
CO 7-1200
ATT

LO 8-0900

Teletype PH 30

••

Volume

Number 5600

185

(7)

Financial Chronicle

The Commercial and

S

-

If the

The Outlook for Business
By DR. PHILIP WERNETTE*

.

Professor of Business
r

'

.

Ann Arbor, Michigan

-

.

•

-

...

**

.„.

„

factors relevant to

varioui

,

business

..

.

^

varmn.

projections;, and concludes

3

in time when necessary,,

outlook is ^'simply fabulous"

knowledge, and

-

doesn't

supply

money

money,

for

long

so

and. that the long

Jf,

run

~

exercise wisdom,

as we

velocity;

between

^

*

have

S°me

all-, tho

e orU7" ignorance that

Arguments

in

trouble

•

These

.

..

in

Took at Some erroneous ideas

a

<V*.

This'portion of the discus-

look.

that ain'i

..
of them:*

are some

t-

Continued

.

on

page

simply "flation"—if adjustments are- made
bankers of geographic unevenness in eco-

possible-hindrances tor-

Vie

v—

I*r^r/'y/r.' growth projections offered.% ;i-< N'-FP-r.I.
•

going to rise substantially in the
year ahead./ * /
*
' • /'■—
' •
ing where we may be going next. * " (2) Residential Iconstruction —-rl956 has been a very prosperous this component of total construe-.

First, let

take 'a look, at, the
as a basis for see-

us

past 12 months

hap-:

tion

is

per¬

year as
pily jand

The

dollar

haps ? even

much-

fortunately

starts,

a g o.,

the year oefore. The
is down from about

year

-seg-""

Many

in

of* the

ments

Ameri

have

made
time

past

months.

12

Here

economy

have

that
*

Werne«.te

t-n.itp

the Ameri-

can

7

.

made

:

•

records.

new

by our productive en¬

high. Its money
Value by the end of the year will
probably be about $410 billion as
A,
against $392 billion during 1956
i.

Borne

new

a

t>ono

^

rise

this

of

being

of

due,

price level increases.(2) Closely associated with this
to
as

rise

a

income

national

the

in

high, about $341 billion
against $324 billion in 19-55.
new

a

(3) Employment.,In October, 63
Americans

million

in civilian

work

at

were

Total construction, which I

(4)

estimate, just very slightly
.than

that

cited

by

^highei

previous

a

-

some

did

taxes
last

Kill

T»~i

billion.

billion,

$21

the

at

of

the

were

million
the

last

coming

ancrs in

figure exthis year,

'

Discounts

Stock

iin

,

.

.

.

•

of

Stock

prices

•;

-y

'«

...

.

.

.

•

-

J Cit(l I

*

,

,

.

^

•

.

ard

looks at „the Stand-

one

Poor's

and

instead of

figures

the Dow-Jones average. For tech-

nical
.

the

reasons

D

o

w-J"ones

35,916,024

•

Standard

/

(9)

ard

has
is

Wage, rates and

of

living.

(10)
recent

1953-1954.*

ing

the

»•••

fhe stand¬

of the consumer
all-time high in
_

segments

-

.

...

.

.

'?* .x\

.

37,769,767

.

6,400,000

.

$200,000,000

.

.

.

300,^00,000

.

569,381,186

69,3lH^86

.

1 Otul

Figures of Overseas Branches are as of

,

„

';

•

•

$7,426,979,(HO

•

December 23.

Government Obligations and $28,136,600 of other assets are pledged
Public and Trust Deposits and for other purposes required or permitted by law.
-

to secure

,

member federal deposit insurance

corporation

.

-

•.

Chairman of the Poard

President

Vice-Chairman of the Board

FXVIARD C. SHEFERD

JAMES S. ROCKEFELLER

RICHARD S. FERKINS

•

jF*

*}

ny
Head

*

"•

forever?1

we now

'

/

.*>'».

are

'*iX '•

<+• >'

>

.

f

and-Due

■''

.

to be found in two

American.

in

services.

the

This produc¬
rises
slowly ;and
never

1930!s,

-

.

L-oans

and

Stock

in

,

.

.

.

.

.

.

*

•

.

.

Reserves
•

.

.

...

oans and

i

v

.

.

.

.

2,996,983

Securities

Federal Reserve Bank

2,6^3,419

.

.

.

.

Capital

1

.

.,■

$10,000,OCO

Surplus

.

10,000,000

600,OCO

.

.

.

.

2,360,498

.

.

Dividend?601,142)

2,482,497

..

4,922,597

.

.

7,812,154

.

(Includes Reserve for

17,454,634

.

,

$161,205,180

Other Assets

actual

79,9f(j,577

^

Municipal Securities

Advances

$120,591,249

Deposits

$ 47,833,974

«

Cther Federal

.

Bank Premises

declined—

when

.

*'Real Fstatf. I

vate enterprise system, to turn out

capacity
steadily. It has

and

of

Other Securities

;

,pri-:

Agencies

State

One
is supply—productive:? capacity—
the ability of the American eco-''

,

.

.

U». S. Goveknmfnt Cbitgations
Obligations

:

Banks

from

of December 31, 1956
LIABILITIES

ASSETS

-

/Cash

•

great strands of explanation.

goods and

separate

administration of trust functions

,

Statement of Condition as
.

Determinants of Prosperity

countries,

:

.

ques-"

turn our attention..
/

-

The

National City Bank of New York for

Affiliate of The First

come

up

To These

Office: 22 William Street, New York

Undivided Profits

12,801,777.

32,801,777

,

an

months.

.

Undivided Profits

$7,426,979,(40

•

(2) Can it continue go'-"

tive*

^

.

(435 C76 964 of United States

"*•

-

goes

or

up

even

*

A, rise

Some

of

true

Poor's figure.

and

price level to

.

occurred- since

not

27,512,039

...

Surplus

11,561,124

^

This long continued rise, there¬

;

figure under-state^-the rise in the--nomic- engine, the

prices
that
1929.
This

r
.

Interest, Taxes, Other Accrued
Expenses, etc. . . ... .

Capital

j.

v

^

#«••••'

-

realized if

;

7,000,000

.

...

;•

Other Assets

••

achieved

also

■

.

.

.

.

We* may sum-','
months, by

-The determinants of prosperity
new
highs.
Indeed
they;, were->in a private enterprise country,
somewhat higher than is generally
and even to some extent in slave,
:(8)

,*

7,064,915

(10,000,000 Shares—$20 PuF
ft

he-f
in the United States in' 1938
only minor setbacks that
have occurred in 1945, 1946, 1949

down?

.

15,000,000

with the

-

high figures
5
k"

,

Unearned Income

76,872,228

gan

posits and bank loans in American tions
new

.

12

,

in this past year.

Branches

with

for:

tiriuation of the up-trend that

know well, bank de-

banks achieved

Transit

Dividend

Bank Premises

close to it

,

and

/

in

saying that they represent a'con-"

;

.

26,774,500

{In Foreign Currencies)

International

Banking Corporation

commodity

•

In

v

.

79,686,271

,

Foreign Central Banks

'

leyel in more
but in earlier years

other words,
marize "these last

passed 168
and will rise in

,

*

15,953,896

portfoj.io

think it altogether possible/
that it will"-in"the months ahead.

(6) Industrial production. After

you

$95,640,167

«

Unearned Discount and -Other

dip in the first half of the year;
fore, poses two key questions: (1)
the index made an all-time high
Must that which
(7) As

to

Items

*

«

.

.

a

in October.

•

30^358,844

Securities

Federal Reserve Bank

Ownership

;

.

Due

3,708,099,539

.

Acceptances.

^

and

very

103,286,313

.

Bills

Less: Own Accf.pt->

Customers' Liability for

.

$22

-Pir^-iiva

wholesale

ances and

Accept¬

I

and

.

year.

393,110,101

on

Reserves

price index has not yet surpassed
its 1951 all-time. high. I say ."not

maintenance

year

new

'

yef^" because 'it's

•

*

Republic, interest rates
much higher.
'/

The

.

Real Estate Loans and

very

(6)

.

Municipal Securities

and

$6,672,390,362

Liability

*

after *.
high

highest

than 20 years;

Population.- It

(5-7

Loans

an^ all-time high this past year,
The structure of interest rates how
is

and

.Other Securities

Interest rates did not make,

(5)

"

i

Statf.

they prooably will be less'

new

and
of

a

the

billion

$21

(1956)
than

10R R

.

1,184,240,523

U. S. Government Obligations

segment...

a

profits

make

Due from Banks

and

Deposits

$1,861,534,344

-'5V"

is

In .1955

ceeded

construction;
in
$15.5 billion.
■

of

repairs
amount

Cash, Gold

1950

**

the

r

The all-time high was
when
corporation

-

in

LIABILITIES

ASSETS

is

profits after taxes exceeded

.

and

'

-

December 31,1956

of Condition as of

Statement
5

that did less well
earlier years,- * _7 :.

not

year.

made

^speaker, but ngy figure is-not
"necessarily to be preferred on that
%
account.-'My estimate* for 1956:
$44.5 billion

the

this

and

Corporation

(4)

employment, the figure

being one million higher than the
figure of the preceding year,"
J

in

than

')

is

in

be corrected /

may

Agriculture

(3)

to inflation and commodity

course,

level

of the economy

n*

(1) The gross national product.
total
of goods and services

gine made

probably stay

building,

by the Congress...

The

turned out

•,

$16.6 billion /•

same

something that

■such segments
of

dollar figure

Offices, and Affiliates

York

Greater New

Branches,

70 Overseas

Offices in

75

*

■

year.

house

in

10

a r e*

<

■

At * the
present
moment statutory restrictions bn
the interest rates are the principal
adverse factor restraining a rise

high dur¬

ing these

the

coming

York

Office: 55 Wall Street, New

Head

estimated $15.4 bil¬

an

about

at

all-

an

1955 to

lion in 1956 and will

can

economy

so

housing"

number1 of

is

a

down

because the average house
little more expensive than

here

forecast
"a

is not

figure

the

as

of New York

somewhat this year.

down

of the

,

,

production dropped by 50%. This
occurred
not
because productive
capacity declined, but only be¬
cause

of the

drop in demand.

Total

.

v

.

$161,205,180

.

(fft;400,284 of United States Government Obligations are pledged to secure
Public Deposits and for other purposes required or permitted by law.

De¬

national

mand—the effective willingness to
however, did not make spend ■ money—declined.
These
highs during the. year.*". two factors are inter-related in

Total

MEMBER FEDERAL DEPOSIT INSURANCE

CORPORATION

economy,
new

(1)

;

The

production ^nd sale of

automobiles. They lost about 20%
from a year ago; but certainly are
,.

-5

An

the

The

,,

"

address

Conferee,.

First

by
rf

National

Dr.

-

Wernette

P--»Bank

c
ot

,

,

before

expanding economy. Ours is
a
"growing
boy" - economy, - in
terms of productive capacity; and




LINDSAY

HGVtARD C. SHEFERD

BRADFORD

President

RICHARD S.

PERKINS

our

money

is the "life blood" whose

•„

r;-circulation
Chicago.

Vice-Chairman of the Board

Chairman of the Poard
*

healthy.

keeps * the

„

ccoiiOiiiy

We shajl be

glad ro'send

a

complete

of The First-National City Bank
to

of

copy

of the 1956"Report to the Shareholders"

New York and City Bank Farmers Trust Company

anyone

who requests it.

•

"

(1) Depression is certain —be-

/

connection with the business out-

simply "Ha-

its tho

world;

this

passing to an evalua^- things that folks know
of tion of the key factors—let's take so* •'' ■'
v
...J
,

have neither inflation nor

we

deflation—we

thingsTever said by any human

being. * Said Josh Billings, "It ain't
causes

'

••.

•.

Before

/

iridiiey increases' atr justv the rfght^'

/fate

•'

»

hap-

quantity

however;the-

by

the outlook for demand.,

•

1929 and 1933.7V

,..

id

merit

*

warns

nomic growth dispefsienj'and examines,

..

pened

not

demand,

off it

actually

This

depression,

short-run period

a

Author claims right proportion of

courage.:

deflation but

nor

in-

.

supply to production output spells neither inflation,

•

:

in for

are

high level prosperity-*—providing the Federal Reserve^ can

reverse
v

we

the humorous writer of another

day, whose name even nowadays
"fluctuations in is almost forgotten. He said many
.~rv-'.-crease fast enough (with a total productive capacity—-which grows interesting and witty things, irv.disregard .for the'.medical facts) slowly and steadily through the eluding one that has long seemed
boy begins to develop years/ We shall come in a mo- to me to be one of the wisest
the

spenders, monetary-factors, regulators, and'upsettery;- evahi-* 7 5 7. blood is* actually 'drained
ates false .or misleading arguments used in businessoutlook 4-%^iop
of

the

hsted underv the; headiiigs fofv-baromeier^^orne'of the

outlook,

sion is most respectfully dedicated
to a great and now almost forn
gotten American, Josh Billings,

tion," which is one of the desir-

life

of monetary

able goals of national policy. , \
growing t)6y 'economy develops
"Short-run fluctuations in the
high /blood
pressure—equivalent nation's prosperity are occasioned
to inflation.
On the other hand if. almost entirely by fluctuations in

Administration,. University of Michigan^

Ann ArKnr PrJp^nr PYamiin.*
®

supply

blood:..;inereases>.tooj';ii-ai>idl^.

*

T

Zu

8

(8)

The Commercial and Financial Chronicle

North

Canadian Oils Limited
Data
Ross, Knowles & Co.,
Ltd., 25 Adelaide Street, West, Toronto, Ont., Canada. Also
—

available

Dealer-Broker Investment

Oglivic

Flour

ardson

data

are

—

Limited-r-Review—James

L. 0.

Company

Man.,

And Business Trend

Canada and

Recommendations & Literature
S

It

understood that the

ig

"

'

*

"!•

*"

•*

"

Pepsi

Cola

Co.

Street,. New York 4, N. Y.

"

mentioned will be pleased•
the following literature f

Letter

uranium
in

(No.

atomic

23)—Comments

tracts,'atomic

con

additional

on

merchant

chemistry with items

:

Canadian

Ryerson &
,

ship program,

progress

Co.,

on

Monthly

investment

letter

Company, 15 Broad Street, New York
able is current Foreign Letter.
; /
Dividend
New

Tax

York

able'is

a

Credit:

Its

Importance

Burnham

—

105

.i

>

for

Economic

Growth—

Union

Oil

is

end

a

ing to Lucien O. Hooper, of W. E.
&
Co., New York City,

y'^'/

Hutton
"h

Analysis — Boettcher and Company,
Avenue, Colorado Springs, Colo.

for

1957—Circular—Park, Ryan, Inc., 70 Pine Street,
5, N. Y.
yy;
..v.
yy;;;'.;
Philadelphia Bank Stocks—Comparison of 11
largest Phila¬

Corp.

Memorandum

—

Walston

—

&

Co., Inc.,

the

120

—

Over-the-Counter Index—-Folder showing ah
up-to-date- com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter
industrial stocks
used in the

yield

and

market

National
York

National Quotation Bureau
Averages, both as to

4, N.

Y..

Pocket Guide
of

performance

Quotation

selected

Bureau,

,

.

.

for Today's

securities

Utility

,

.

a

46

.

13-year period —
Front Street, New

Investor—Pamphlet containing lists
income, growth and trading—'

14

Wall

Street,

New

York

Common

Stocks—Tabulation—G.
Co., Inc., 70 Pine Street, New York 5, N. Y.

Steel
den

A.

5,

N. Y.

Saxton

&

Stocks—Analysis in "Monthly Investment Letter"—HayStone

Stock

&

Co., 25 Broad Street, New York 4, N. Y.

Market

Readjustment should end by
mid-year—Study—
Co., 40 Wall Street, New York 5, N. Y.

Parrish &

What Is the Outlook for the Stock
Upham & Co.,- 120

Market?—Analysis—Harris,

Broadway, New York 5, N .Y.
*

Ansehutz

Foods,

Wall

York

5, N. Y-.

•

•

b

r

&

effective

Jan.

and

other

has

been

to

1

con¬

nently

Russell &

name

of

that

announce

Ernest

'growth'

R.
•

•

S. Dickson Adds

&

CHARLOTTE, N. C —Joseph D.
Myers is with R, S. Dickson & Co.,
Inc.,

Wilder

Building,

members

Incorporated,
225
Street, members
of

Mason
New
Rie'r
&

Exchange.

Co.

York

reach

B. Henri

Risk

cerned,

East

of

the

is

Christiana
120

,

Securities

Boston

power

First
t

i

■-

.

National

Notes

Bank

'■

of

&

..y.—

New

Ira

York 5,^ N. Y.

.

Nicholson File

pital Trust

York

—

"1956

—

of

Meeds,

:

-

Reoort

Bros.

CLUB

OF CHICAGO

President, has

ing Committee of the Bond Traders Club
the

of

Harson

purchasing

a

the

money

profit margins squeezed,
less
abundant,
I

1956.

the first half year,

business

be better than the stock
It is possible that

.opd

half

Co

Cosgrove, Whitehead

120

Rm. 707
Y.

ceed

Co., Hos-

to

&

Friedman

Charles

G.

Scheuer'

James

H.

businesses

Co.

and

Whitehead.

/

Scott

American

Marquardt, William A. Fuller & Co.
Vice-President: Leonard Friedman, Boettcher & Co.
Secretary: Charles G. Scheuer,"Wm. H. Tegtmeyer & Co.

be

Gam¬

Main

office of the

at

Stock

Exchanges, will
Street, New York

Wall

44

City.

y
in

^

Branches

Treasurer: James H. Scott, Blyth &
Co., Inc.
The Club will hold its annual dinner
meeting on Jan. 28, 1957
at the Sheraton Hotel.
William J. Sennott, Jr. is in
charge of
.arrangements.
<
:
1
'
v -

are

maintained

'

Binghamton, N. Y., Cleveland, De¬
posit, N. Y. and Harrisburg, Pa. *.

With S. J. Dodge
(Special to The Financial Chronicle)

DEPENDABLE MARKETS

strategic "Metal for the
and Beyond"

•"ti

.r-

,L

.C SHAWANO,

LAMBORN & CO.. Inc.
99
-.4

,WAlt- STREET

Hoefflerv has

!

with

S.

"'•>

Mam

NEW YORK 5, N. Y.

&

CO.

Raw

Associativa

—

Refined

—

A.

Liquid

,

,

formerly
Krensky & Co.',
C. Allyn & Co,
/

:

1

(Special to The Financial Chronicle)
—

Benjamin

Wolff has become associated

Salle
DIgby 4-2727

He-was

M.

CHICAGO, 111.
Rothschild

DEMPSEY-TEGELER t CO.

John P.

connected

Joins Rothschild Co.

Exports-—Imports—Futures

Trinity Place, New York 6; N. Y.

and

—

I,

SUGAR

;

TKOSTER, SINGER

-Street,

Arthur

Inc.

Sold

Wis.

become

'

J'.'Tfddge Co.,. 126 South

with;

Security Dealers

of

Cosgrove Miller

firm, which will hold mem¬
bership in
the
New
York
and

•>

—

the

&

new
Leonard

Brush Beryllium

Atomic Age

sec-

year

Announcement is made of the
formation of Cosgrove, Whitehead
& Gammack, as of Jan. 1, to suc¬

Beryllium Corp.
•

mar¬

in the

the,,stock market
be better thari business." :

JntSy

55

&

&

-




private

may

.

74

that

Deflation,
like
early 1930's, simply is
the cards. If anything, over

in

"In

mack

L.

DEALERS—

Y'

too,

money

than

year:

President: Jerome F.

Members: N.

years

look fqr lower corporate
earnings, in the aggregate, in, 1957

that the Nominat¬

Chicago has selected

following slate of officers for the coming

Jerome F. Marquardt

—

war

con¬

most

would

announced

>

•

Broadway, New York 6, N.

Bought

the

higher than

no

"With
BOND TRADERS

to

York

New

Building, Providence 3, R. I. ^

a

of

& Gammack Formed

Sutro

-

.

Company—Analysis—F.

Beryllium,

long pull is
mind that

in

■

Corporation—Analysis—Unlisted Trading Dept.,

Haupt & Co., Ill

the

as

the years there will be more in¬
flation.
Right now, inflationary
pressures are less pronounced.
>;

,

&

Company—Analysis

Broadway, New

Knox

*

-v.

even

borrowed.

not in

NSTA

Edward A. Roob,

Shareholders"—First National
City Bank
Wall Street, New York
15, N. Y.

Ingersoll Rand
,

City

.

prices

ket.

Molybdenum—Data—Bache

this

unques¬

that of the

Co., 36 Wall Street, New
York 5, N. Y. Also
available are data on
Pittsburgh Metal¬
lurgical Co., Vanadium Corp. of
America, and Kelsey-IIayes
Co.

think

of

the economy because
debt will not be paid off.

war

and

•

■i

market,

cept in dollars with

Atherton & Co.,

City Bank Farmers Trust
Company—1956 Report to Sharehold^
ers—City Bank Farmers Trust
Company, 22 William Street,
New York 15, N. Y.
■U

low

built into

they

Broadway, New York 5, N. Y.

Climax

-

Dow-Jones

the

higher

inflation

Remember,,

9, Mass.

Co.—Bulletin—Laird, Bissell

not

debtors cannot pay off and service
their present large obligations ex¬

V

50 Congress Street,

y

do

the

The

keep

the

the

'V-.r/."•

^

-

I

:

Co., 517 Seventeenth

Tractor—Memorandum—Schirmer,

in

toward

"So far

.

Caterpillar

dis¬

in the first half of 1957.

Exchange. Mr.
previously with Leason

was

had

tionably,
will
continue
to
be
highly
selective;
and
a
small
minority of stocks probably will

Stock

Co.

so-called

which

marks

correction.

have become affiliated with Loewi

(Special to The Financial Chronicle)

of the Midwest Stock

T.

the

but

460-area

Industrials

(Special to The Financial Chronicle)

Donald

issues

market,

the

Keusch

MILWAUKEE, Wis.—Walter A.
and

of

major

bear

Two With Loewi Co.

Meanwell

Hooper

counted too much too far ahead.
"I am not looking for a

nership in the firm.

Gottron,

O.

'

over-appraisal

has been admitted to general
part¬

Co., Inc.

Lucien

temporary

Exchange,
E.

higher

ing arecent

Co., 14 Wall
City, members

of the New York Stock

tinue the investment
banking and
brokerage business formerly eonducted under the

York

more

money rates
and
correct¬

McKinnon, 11

Street, New York 5, N. Y.

Capitol Uranium Co.—Report—J.
Street, Denver 2, Colo.
*
'

principal

Exchange
exchanges,

New

&

.

less perma¬

or

Investing Corp.,, 80 Wall

•

Incorporated—Report—Thomson,

I

Stock

Street,

Hutton

r

ad¬

them¬

selves to

*

Drilling— ReporWGeneral

Street, New
Best

*

York

formed

.

tor

Harris, Upham & Co.,
Public

.

.

over

Inc.,

E.

e

are

justing

To W. E. Hutton & Co.
W.

:

.

last
m

Stocks

„

E. Keusch Admitted

CLEVELAND, Ohio—J. N. Rus¬
sell & Co., Inc., Union Commerce
Building, members of the New

:

.>

progress

i nee
m

&

Formed in Cleveland

v\

a

&

—

J, N. Russell &Co.

123 South

n

downtrend,;

in

of

e

more

tempo—=
technical
recovery
in

s

Company

b e

rary

New York

delphia Banks—Stroud & Company Incorporated,
Broad Street,
Philadelphia 9, Pa.

s

than

State

Swasey Company—Analysis—Edward A. Purcell &
Co., 50 Broadway, New York 4, N. Y.
^
:
: 7

(

a

nothing

Disney Productions
Memorandum
Joseph, Mellen &
Miller, Inc., Union Commerce Building, Cleveland 14, Ohio.

Warner

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

Peak

"It is my opinion that the yearrise in stock prices," accord¬

Roney &

available

—

Walt

Yamaichi Securities

—

Detroit. 26, Mich.
Also
Stubniiz Greene Corp.

California—Analysis^Dean Witter
*'/- Co., 45 Montgomery Street, San Francisco 6, Calif. C
•

•

Current information

—

Pikes

-

business activity and price trend.

Industries.

Ilaynes, Inc.—Memorandum—William C.
on

coming prospects- for
market, corporate earnings,

stock

Broadway, New York 5,; N. Y.

Exchange, New York 5, N. Y. Also availdetailed study by the Exchange of "Stock
Ownership

Plans for Employees."

Reviews

7

-

Parkway—Report—Howard, Needles, Tammen
Bergendoff, 99 Church Street, New York 7, N. Y.

Tennessee

'

Stock

Japanese Stocks
Outlook

&

and

-

East

Sunshine

Also avail¬

5, N. Y.

Schenley

on

Speer Carbon Company

.

—

Co.; 60 Beaver

Buhl-Building,

memorandum

Westinghouse, El Paso
Foundry, Foote Mineral
Company and Newport News Shipbuilding and Drydock Co.
—Atomic Development Mutual Fund,
Inc., Dept. C. 1033
Thirtieth Street, N. W., Washington
7, D. C.
'
'
View

yy

,

&

Manufacturing Co.—Memorandum—Oppenheimer &
Co., 25 Broad Street, New York 4, M. Y. Also available is a

Natural Gas, American Machine and

Burnham

Hentz

Raytheon

memorandum

Atomic

MemorandumH.

—

firms

send interested parties

to

'

.f

Hooper Views

1957 Stock Market

Rich¬

Sons,. 173 Portage Avenue, East, Winnipeg,
Royal Bank Building, Toronto, Canada.

&

Thursday, January 3, 1957

.

Consolidated Denison Mines Ltd.

on

Mills

..

-York

&

Co.,

135

E.

with

South

La

Street, members of the New
,and
Midwest
Stock, 'Ex¬

changes.

1

^

,

,

Number 5600

185

Volume

. .

/

V'

Earnings and
-

•

r.

'

President, Standard &

SCHMUTZ

In foreseeing

larger, than

Poor's Corporation x

in.

rise

running well

is

reduction

to

reason

no

the

in

payout ratio, .on
•

,

,

excellent

Another
store
can

will

1956.

that

-

taxes

of

prospects

and
auto parts, which are -expected to
enjoy a good rebound in demand
following a major adjustment in

which

Schmutz

A.

Standard

in 1950.

expenses on new
to further
are

vances

profits last year. Even so, their
earnings were 22% greater than

whereas "all corporatons"
somewhat short of the
established in that year.

in 1950,

still

were

record

1957, we anticipate a gain

For

about

close

progresses if the recent rate
saving in maintained. , Its ef¬

1957
1956

will be felt most keenly in
home building and certain types

1955

construction,
outlays by industry

1954

equipment and a further

new

will

Inventory

year,

w

1949

often

tributor to

a

esti¬

Poor's

in

rise

25.92

—

—

25.30

•

i

-■.■»

■

■

,

The

Farm

versed

are

Commodity

celerated pace.

between common
yields has nar¬

spread

in

(Special to The Financial

Rates

at

off

warding

Cravath, Swaine & Moore.

Mr. Porter

with the U. S. Navy.

Shields

ing Department for

In

announce

—

29.16
23.92

an

offering of these Shares for
.

15.26

_

This is not

any

sale,

or an

of the Trad¬

H. H. Butter-

the
He

was

the

with

Municipal Bond

formerly with John Small

Co.

offer to buy, or a solicitation of an
made only by the Prospectus.

23.35

9.06

16.92

8.15

1929

13.00

413,920 Shares

/

offer to buy,

•

8.19

—

—

—

—

—

—

Pineapple Company, Limited

Hawaiian

Common Stock
(Par Value $7.f>0 Per
Rights, evidenced by

Share)

transferable Subscription Warrants, to

Sound Canadian Investments

holders of its
These

buy through us many

United States investors can
Canadian
■

securities which offer

The several

United States

includes:

on

fully set forth

Prospectus.

informar

agreed, subject to certain conditions, to purchase any
the 192,750 shares to which certain stockholders

Underwriters have

unsubscribed shares, other than
of the

Department with up-to-date
major Canadian companies.

V A Research
tion

in the

sound investment

complete investment service to

investors

December 28, 1956.

of business on January 21, 1957 as more

rights expire at the close

have attractive growth

qualities. Some of these also
possibilities.
Our

subscribe to one new share
by the Company to

-share for each 4 shares held, have been issued
Common Stock of record at the close of business on

of stock at $10 per

Company have

agreed to subscribe, and during

subscription period may
"

>,

and after the

offer shares of Common Stock as set

forth in the Prospectus.

Correspondence Department to deal in securities
by mail. ,

V A

V Private

teletype service to our
York.

offices across

•

V

or

is circulated from

brokers

Membership in The Investment Dealers' Associa¬
tion of Canada, and through our broker affiliate,
membership in leading
Canada.

as may

Stock Exchanges in

*

Inquiries from investors
are

Dean Witter 8c Co.

invited.

McLeod,Youmo,Weir& Company
LIMITED

Investment
50

be obtained in any State in which this
only such of the undersigned or other dealers
lawfully offer these securities in such State.

Copies of the Prospectus may
announcement

Canada and to New

Hemphill, Noyes 8c Co.
J. Barth 8c Co.

.

Walston 8c Co., Inc.

Crowell,^eedon 8C Co.

Hallgarten 8c Co.

Schwabacher 8c Co.

William R. Staats 8c Co.

Dealers Since 1921

KING STREET WEST,

Montreal

Ottawa

Winnipeg

Calgary

Kitchener

Quebec




^

TORONTO, CANADA

London .
Sherbrooke

Hamilton
Windsor

Vancouver
New York

Lester, Ryons 8c Co.
January 3, 1957

firm in

Department.

11.42

■

-

Wall

Stock Exchange,

„

of such Shares. The offering is

44

that George Hayman is

associated

now

the

&

& Co.

Company,

Of the New York

associated

Avenue.

&

Street, New York City, members

Lerchen & Co.,'120

past he was Manager

field

years

George Hayman With
Shields & Company

Chronicle)

become

has

Michigan

West

Tight money policy of the Fed¬
eral Reserve, reflected in succes¬
sive increases in the rediscount

several

recent

JACKSON, Mich.—Michael Bar¬

with Watling,

aimed

served

Lerchen

With Watling,

Jr.,

for

and

bond

considerably

ton,

Co., Inc. Prior

Vice-President of

During World War II

actively for the investor's dollar.

Prices

a

practiced with the New York law

Bonds are now competing

prices of other products have re¬
cently been advancing at an ac¬

Interest

bar

State

Yields

rowed

product prices have re¬
their five-year slump, and

is

now-inclined to

and Bond

and

stocks

1

••; -"

■

to this he was a

years.

14.44

.

—

'

Wholesale

of Chas. Pfizer &

14.33

—

.

2-

'

Counsel and

Director

firm of

Stock

An¬
increase of about 10% is in¬

Secre¬

General

14.64

^

—

,*

an¬

capitalize these supporting factors
on a more conservative basis.

in the business boom.

15.62

24.56

_

,

_

..."

tary,
Robert C

record.

investors

and

dicated for 1957.
■

1956, having
p r evi o u sly.

prices have outpaced the Chemical Bank & Trust Co. He
earnings and dividends, is a member of the New York

Stock

Gross

the

&

early in

been

Dividends

expenditures for plant
equipment have been a major

other

to

with F.

ciated

Prices vs. Earnings and

Stock

Capital Expendituress

factor

slightly

asso¬

Eberstadt
& Co.

/

Porter;

Mr.

became

19.80
18.68

1947

an
important con¬
"boomy" atmosphere,

new

ahead

push

new

department.

Dividends

and

-

of-

business-

(indicated), but dividends

other

National
Product will reach $425 billion, an
increase of 3.5% over 1956,

and

the firm's

$21.00

28.76

_

1948

While this

&

Standard

that

1,*

will

He

head

be

its

1957.

ef-

firm,

1957.

production,

Profits

may

mates

the

earnings

billion

Growth—U.:'S.

long Vecord of "economic
growth.
Indications are
that further progress will be made
in

*

of all corpora¬
tions in 1957 probably- will show
little change from last year's $21.5

America reached new peaks last

ye"a"r "in7

rates,

37.61

.

—

.

1950

accumulation, which
billion last

will be retarded.

factor,

—

1951

amounted to almost $3

Total

re¬

35.85

(est.)_!_
''

1952

..rise in government spending
be offsetting elements.

Economic

Broad¬
has an-

Dividends

$37.50

(est.)

1953

fects

commercial

a

Net
Income

of

though heavy

shows,"'such

share
adjusted to the index, would be
almost triple the earnings of 1929.

absorbed.

Corporate

.*

\

1929.

As the

sult, in terms of dollars per

year

for

lift earnings
peak.

1955

their

of

of con¬

group

which would
to

following table

Tight money will continue to be
a limiting influence, though some
relief
may
be afforded as the

of

this

for

5%

cerns,

ad¬

price

price

daily

a,moderate decline in

countered

plant and

resistance

the

in

represented
Poor's

Rz

of 50 industrial stocks en¬

index

shapes up as
consolidation of
earlier gains by industry, and a
period of "make ready" for fur¬
ther gains to come.
This process
will -not preclude an increase in
Gross National Product, which we
project at around $425 billion, a
rise of 3.5%, but will put some
strain on profit margins as start¬
1957

year's

rise of 6% over last

a

~ ~

output' in -1956
about 26% from 1955's

down

Heavy

Companies

general,

in

1956.

another year for

up

steel

and makers of autos

ducers;

Charles

1957

year,

65

.uoujiced the a general partner of
admission of Robert
C. Porter as

to
some
5,872,000 cars.' Industry
leaders are forecasting an increase
to about 6Vi million cars in 1957.

payment? and would be IVz times
the dividend total for this group

the general

Among these,

ment^aircraft companies; oil pro¬

compared
with $21.1 bil¬
lion
in
1955
and
an
alltime
peak of

In

need

industry and
makers of basic industrial equip-

yea r's $21.5
billion
(indi¬

$22.1 billion

individual

particularly favor¬

are
the

for

able

last

cated),

Many

of corporations.

run

resent

approach by in¬
leading concerns

selective

a

should fare better than

balance,

from

; •

it, 1957 will be a year

we see

vestors.

change,

little
on

Crosscurrents

of

conflitcing trends for

for

show

last

pro-

car

record-breaking

J

-1

1

companies, emphasizing the

after
of f-all

corporations
will

As

:

ag-

:

...

Year

gregate net
income

than

no

emphasize the solidity of corpo- dividendsthe 50 stocksabout $21 a
.equal to in our daily
share on
rate earnings in the period ahead, industrial index.- This would rep¬

We esti¬

mate

will

in will be missing, its absence

is

year

shareowners of Ameri-.
corporations, though gains
be even less general than in
for

a

Co.,

Production

Passenger rCar

S.

".Passenger

larger
should see

is

this ratio

if

been

&

York 1- City/

fective Jan.
U.

was

V Even

has

outcome

New

way,

nounced rise in interest rates. *

expect any

over-all basis.

an

the

Eberstadt

F.

last year's

above

has restricted the supply of credit,

•

.

Porter As Partner

,

...

.

.

levels Since-the Federal Reserve

corporations paid out a
o~f
historically
low
proportion
earnings in 1956. Although outlays
for expansion will continue large,
there

.

.

leading

a

•

L#ans

Borrowing from banks has been

disbursements,

stockholder

in

the

the further rise

Despite

profits.

1957 outlook for earnings
3.5% rise in GNP for 1957 to
$425 billion, Mr. Schmutz opines it will be a year ©^opposing
trends for individual firms, requiring selective approach by
investors, and that the increase in dividend payments may be
proportionately larger than the rise in profits.
dividends.

-

tionately

:

Standard and Poor's head presents
and

-

Tota,

CHARLES A.

By

,

Ebersfadt Admits

Largfer Dividend Rise
dangerous inflationary, pressures
UttllOOK ments, we believe, will be proper-. *n
• The increase in dividend payeconomy.'/,1
I

ft" Al

9

(9)

Chronicle

The Commercial and Financial

.

TO

(10)

The Commercial and
tinancial Chronicle

The Investment Outlook for 1957

Added to

this, the great

of demand

Top life insurance economist anticipates: need for continued

ally

credit restraint in 1957,as "we shall
again be confronted with
demands for capital funds in excess of available

nancial system as

reduced
both

and

supplies from
sources"; GNP will increase moderately to a new
record level; and market forces should
produce firm to rising
;

nonbanking

for capital funds which will
flow

over¬

the

nonbapk supply, James
;*r, O'Leary, Investment Research
} Director
of
the
Life
Insurance
Association of America, in his re-i ort
of Dec. 12 to the Member¬

Firm to

ship,

concludes there will be great
for bank credit expansion

j-ressure
t

Jeyond

growth

requirements

"During the past two

.

exuberance

of

to

to

sav¬

The

in¬

out¬

has been

c

r

a

e

strong

t

e

pres¬

beyond the

re¬

tional

In

omy.

fi°ld

econ¬

of

the
resi¬

and

industrial construc¬
tion, state and local
improvements,
durable

goods

we

have been
pressing to expand be¬
our

resources.

fundamental
pressure

on

the

the

credit.

.

is

the

upward

under the

it has been

monetary

restrain

of

source

prices, and

circumstances
for

Here

salutary

authorities

expansion of
;
' AA. '

"

.

alter

to expect this situation
will

appreciably.

clear that

we

It

now

seems

shall again be

con¬

fronted with demands Tor
capital
funds

in

plies

of

excess

from

available sup¬

nonbank

and

sources,

"that the monetary
authorities will
"be required to
continue

credit restraint.
well

continue

hulling
<

a

Although
to

policy of
we

may

experience

the

adjustments'

in

general

conomip activity which

<

haracterized

recent

now

being

have

years

all

economists

to

the

and

on business
capital snending. Rising borrowing costs of cor¬
porations can easily be
exagger¬
ated because interest rates
are still

historically and in relation

to

profit expectations. Moreover, de¬
spite all the talk about a decline

U.

housing starts will
million

or

and

be

run

Treasury have
courageously pursued

as

slightly higher,

by

demand

state

units

high

and

which
year.

had

If

ket

an

in

so

tional

be

do

in

the

re¬

of

funds

a

at

na¬

December 31,
Amount
o/c Of

INVESTMENT CLASS

U.

Outstanding

must

alwnvs

Federal

S.

Government.,
♦State, County & Municip.__

need

the

tCanadian Government
fOther Foreign Government
Total Government

$9,829

12.5
1.7

grow+h.

24

Industrial & Miscellaneous

of

in

15,527

$44,402"

Stocks—

Railroad

136

Public Utility
Other

947

Farm

the

the

13,511

of

1956,

to

7.9%
the

and

and nonfarm

of

Policy Loans & Premium Notes
Cash

•Includes

turnpike

revenue

SOURCE: Institute of

bonds.

Company;

was

The

the

elected Pacific's

chairmanship

annually

the

alternate
two

divi-

the

Pacific

for

date

same

December 81

,

Under the

source of

an estimated
10% of the
total volume of all
registered national seCurities

that

the

confidence
goai 0f becoming
top regional

in

stocks

.and

sinews

1955

Estim. Dec. 31, if>r>r»

Amount

% of

Amount

Total

Outstanding

$8,576

economic
objectives
higher wages, stable prices and
full
employment
create
a
tri-

9.5

%

their usual
to

and

lished

economic

by

Guaranty

'

$7,600

review

Trust

pubCom-

of New York.
"The contradictions
among
three
objectives are

7.9

pany

2:30

(Pacific

Monday

in-

maintain
of 7

a.m.

Coast

time)
Friday.

through

13,968

15.4

13,500

15.1

the

19,900

20.7"

For example,
rising wages need
force
higher
prices except
when wage .increases
exceed
gains
in
productivity and thus
raise labor costs
per unit of out-

1

2.3
'

50

1.1
-

0-1,

herent
selves

partly

in

shortcomings
were

more

20.1

$49,250

51.2

162

0 2

15C

0.2

150

0.2

1.5

1,400

1.4

put.

which

might

corrected

con-

if the

goals

intelligently pursued,"

"Survey"

52.8

the
in-

the
objectives thempartly, due to practical

and

ceivably be

notes.

not

,

1,393

And,

when

wages

increase

1.858

2.2

2,090

2.3

2,100

2.2

faster than

$3.2€8

3.9

$3,633

4.0

$3,650

CO CO

offset

2.500

2.6

30,600

31.8

it upsets the
objective of
price stability. The alternative of
holding the price line would make

added

2.4

2,048

2.4

2,273

2.5

23,928

28.3

27,172

30.1

$25,976

30.7

productivity, the
costs to
employers may be
by higher prices, but if this

occurs

.

'

Objectives

The

out

Guaranty

warns,

2,020

2.6

2,298

2,914

2.7

3.7

3,127

3.7

32.6

3,290

1,265

2,581

2,477.
$90,432

$33,100

2.9

34.4

2,850
3,500

3.6

1.4

1,200

1.2

2.7

.

FhSs"Sen

2,700

Various
proposed,
of

,2.8

.

the

$96,250

100.0

oCc fve Al
V^ tU

solutions

including

right

to

establishment of
courts

100.0

the

of

S„tn the 0b3 Ct

3.0

3.6

-

to

have

the

strike
a

»

and

the

system of labor

adjudicate

wage

dis¬

putes.
1

"This solution would amount to
direct 'governmental- control
of

.

i-

1,

^

J

.

1,

_

wages

and

would

mark

the

end

the

belief held by some that the
aim
price stability should be aban-

doned

and

accepted

creeping
the

as

inflation

least

of

threatened evils.
abject

the

,

surrender

of

the

objective of stable
money is objectionable on many
grounds," the
article charges,
describing such a
policy as morally, politically and
socially offensive.
"Political

realities being what
are, the practical solution
to
problem of
conflicting objectives will
probably ibe found in a
compromise involving the
partial
achievement arid the partial
sac-

they
the

rifice of each," the

eludes.

"Such

"Survey"

con-

solution will
fully
satisfy no one, but it is
perhaps
the best than can be
expected in
a
situation where government
is
asked to be all
things to all men "
a

Blalack Adds

to

Staff

OMONMlrt_

SAN MARINO, Calif.-Doris
Dell-Imagine has

been

&

been

abolition

attacks

of

|Speclt, t0 T„

$29,445

wages,

by Guaranty

"Survey" also

"This

4.0

100.0

will

trading hours

p.m.

publication

.

11.4

$84,486

the

of economic
freedom for labor and
management alike," the

no

entirely satisfactory solution possible,
according
.to
the
January issue of "The
Guaranty Survey," monthly business

of

Total

with

3,900

1.5

for

development of the west
and will continue this
tradition as
divisions of the Pacific
Coast Ex-

•

Idealistic

of

$10,9D0

2.7

its
ex-

.
"Since their
foundings,- the San
Francisco and Los
Angeies Stock
Exchanges have played important
roies
jn
supplying the financial

Trust publication.

4.3

1,240

Coast

with

change."

employment, is pointed

3,912

2,283

exchanges, and
Exchange

Pacific

"approaches

higher

stable prices and full

in

•

increase

Outstanding
*

-

13.0

1.5

Ex_

Trilemma, with no entirely
satisfactory solution possible, in
achieving simultaneously the three objectives of

gov¬

$11,682

2.7

Los

are now

CPast

;AVice-Chairman Naley disclosed
that the Pacific Coast area is the

accom¬

$47,741

29.7

and

Exchanges

unified trading
system more than 500 issues of
national, regional and local cornpanies, including Hawaiian and
Philippine Islands, are traded.

A Glash of Economic

many

the

in'

54.8

•

previously traded

Francisco

the

on

change.

insurance

$46,294

.

traded

daily,

1,050

1.5

San

Stock

divisions

will

between

sions.

56.5

1.248

the

Angeles

Governing Board Chairman,
change," Mr. Naley said,
Naley, Vice-Chairman.
Both

2.250

16.0

A11 the isgUes
on

Mr.

18,179

100.0-

^Cross, of
?.ran

»

&

1.1

tlncludes all political
subdivisions
Life Insurance and
Life
Insurance Association of
America.




Mr. Agnew

lemma

27.3

$78,533

&

2.3

1,215

Total Assets.

P.

Berl

0.1

2,087

Other Assets

Richard

P.

Angeles.

the

to

abr0ad

W-iP. Paul, Le0 P-Pabicn, Hill
Richards & Co.; and
Chester
L.lifeblood
Noble, Noble, Tulk & Co., of Los
dustrial

20.0

/

.

Edwin

^n£ls??'aa
E. F. Hutton

Naley,

as

mortgage holdings.

1,886

Real Estate,

Berl,

Sons; _and

at3?

16,926

3.3

$23,323

Warren

changing

life

Among

revealed

21,436

Other

Shuman,

19.7

$2,573

Mortgages-

H.

E. Kaehler,

first

report

«,

43

4.5

1.9

,

Agnew,

'

Director

explains

2.038

3,757

1,490

~

is

William

of

»

•

the

1,025

14.3

1.2

o

of

Exchange.

0.0

$12,100

02

Stock

1.4

29.

16.3
•

division

a

and

his

of

as

Coast

Agri^w & Co.; Ronald

organ¬

■

plan

composed of Tour representatives
from
each
division:

But

country
,

consolidation

*
The Pacific Coast t,
Board of Gov-

Restraint

the

V

Research

1953

2.2

4.7

12.827

rnu

ernors

securities holdings from
12.5% of total investments at end

10.7;
.

15.8

3.643

Public Utility

1,155

.0.0

Pacific

labor, the consumer,
lending

whole."

the

Staff, and Board cf
G^erno^s p">d

ernment

•

1,254

$12,405

Railroad

1,846

1.6

1,298

$9,070

.

respectively, have been

operates

t h e.

aid

panying table is the drop in

rates.

Total

T

Exchange maintains its own
trading floor, President, Executive

that

and

195^-1950

Outstanding

1899

Under

they

remember

Reserve

^orel.v

1953-1956.

December 31, Tf).»4
Amount
% of

Total

,

each

obT^^ti'*

All United States
Legal Reserve Life Insurance
Companies
(millions of dollars)

Bonds—

and

the

public interest. The
country is fortunate that we have
had such freedom on
the part of

the monetary
authorities, and
have pursued wise

,

membership to¬

140, with member firms oper¬
ating some 700 offices in
key cities
throughout the United States and

Naley

A
Francisco and Los
Angeles
Slock Exchanges founded in
1882

the broad

changes

siz¬

scarcity

desired

Investments, By Classes,

in

composition

ture projects which had to
be post¬

because

Frank E.

•

San

keel

in

combined

investment portfolio for the
period

overhang of capital expendi¬

poned

r»o]icy rpsr>on.«iWiv

Members

mar¬

a

William H. Agnew

nonpartisan, fully in¬
Federal Reserve—free
study economic trends and to
determine
monetary and credit

The

ket picture i|s the fact that
at the
end of last
year there were

stability

phe-'

Orders

area.

division

-.

The

dependent

Association

mar¬

caoital

our

more

^

and

even

each

tals

to

a

last

a

automobile

an

on

single

a

may
be filled,
where; under the former
individ-;
ual operations
they might never
have met."
'
A; 7 A ' A
;

There is noth¬ consolidated into
the^Pacific Coast
ing in the outlook for 1957 which,
Exchange, following Securities and
would
reduce
the
great
public Exchange Commission
approval.
need for a

projects

experience

keep

institutions—indeed

high,

upward push will be
given

available

of

.

value of the dollar.

ized

to the demand for
consumer credit.

able

on

maintain

orders

.

on

will provide a
better and
active market
place for this

-

an-

"Floor members

nomenal, fast growing

policy of

a

part of business concerns,

postponed

Tjpderlving the entire

economy

to

wisely

one

interchange quotations,"

-. A,.: .;;A 1A
%
'A:;, ;
f,?'We feel
sure," he added, "that
the.Pacific Coast Stock
Exchange

the

by the monetary authorities must
be matched by
restraint on the

government

of

to

economic

1956.

remain

view

to

:

J>

and

to communi-

with

able
to - execute
either: division as if

of

other public and
private groups if
we are to have
stable and su^tain-

capital funds

to

we

surgence

for

local

promises

particularly

in

as

restraint

and

A

"

,

instantaneously

are

witness

Reserve

allowing specialist

both floors

Mr. Agnew said.

be-;

policy

a

bank credit.
Federal

Treasury

that
high as

industrial-commercial

as

should

policies.

thatMt still appears that total uses
of
mortgage funds -— residential,
farm,

credit

system

on-

'floor.*',.

rising inf

We

credit

the

residential. construction
this
year, there are good
prospects
one

bank

S.

we

in

"The

Looking forward to <1957, Mr.
O'Leary believes "there is little
reason

is

search

low

other and

posts

restraint

"The

sur-

executives

—"'ill

to

bank

business

of

continuation, of

mercial

in 1957. -More

attention

expansion

cate

will

as

single unit and are connected
by
unique direct voice communi-

cations

by the monetary
authorities designed to head off
an
inflationary increase in com~<

McGraw-Hill,

in
planning
improvement of
plant and equipment, as well as
the great impact of
industrial re¬

credit

normal growth
in
our
na¬

yond

bv

abatement

by

rates.

credit

of

longer-range view being taken by

quirements of

consumer

rate

mmercial

c o

r.nd

current

little evidence from

more

a

growth requirements

terest
the

any

and

a

Francisco and Los Angeles.

a

to Till
Market forces/ therefore,
should produce firm to

the Department of
Commerce, and
Others
that we
can
exnect
marked

Coast

important

an

,

the

ried o"t

xroV«

funds

Pacific

—

Consolidate A

trading floors operate

unique innovation in the history of U. S. securities markets—
begins operations Jan., 2; in San

year in
demands- for

various

Exchange

"Both

and

"it is

conclusion,

again be

organized

Stock

The

the gap.

plant and equipment expenditures
by business concerns is very high,

there is

will

the

FRANCISCO/Calif.—

newly

-

outlook, the As¬

avoid

expansion

yond

Capital Outlays to Continue^"

"Although

in

bank

dential

mar-,

directed

increase

an

ket, as well as business expendK
tures, should continue strong; j In

an

for

sures

Dr. James J.
O'Leary

a:

the face of increased international

the

supply of

come

bolstered'by

SAN

*

;

Exchange.Opens;

^ S. F. &jLA..Exchanges

overflow1; the;
supply from nonhank sources, and
there-will be great; pressure for

Consumer

comeback in the automobile

econ-

evitable

level.

J

institutions." V

Economist states

to

the

capital

Pacific-Coast Stock

fi¬

Rising Interest Rates

1957

which

tensions, Federal expenditures
may well be pushed upward..

demands
f.or capital funds which have over-

ings.

record

new

a

expenditures,

enormous

flowed

that

business activity will remain
high
this year and that
.gross national
product will increase moderately

the

years

national

our

over-all

out:

O'Leary points

('my has led

indicate; that

to

Jill the gap.
Economist

difficult

now

the

commercial -banks

In view of this

sociation's

signs

to

the

in

whole, inelud-.

a

f

interest rates.

Recounting the various demands

liquidity

ing

nonbank

pressures

for funds have gradu¬

Thursday, January 3, 19oi

u

g

added

,

L.
to

Co" 2486

Drive,

With A. M. Kidder Co.
(Special

to The

Financial Chronicle)

BRADENTON, Fla.—Joseph

A.

Frohock, Jr., has become affiliated
A.
M. Kidder"&
Co., 436
Twelfth Street, West.

with

Volume

Number 5600

185

The Commercial and Financial Chronicle

.

.

(11)
.

-

of

"

By MURRAY, SHIELDS*

""

Z/Y "

^

The failure

President, Management Economics, Inc.-

1

:

i

>

-

cial banks expand commercial

and mortgage' loans by $3 to"
$7 billion—aided by Federal Reserve purchase of government
securities

••

the view fhat
;

the

or

lowering of

:

.

businessmen and

.

not harmful

or

a:

"little < wage

'good thing'.

a

\

.

.

V

to Ease Up'

Federal

Reserve

followed

tive

•/

During the past two

the

years,

authorities

expansion

to

"l^hank

il0I\

Several

credit

worthwhile

straint:
:

At '

and

when
for

time

demand

credit

exceeded
funds

far

the

being
s a v

it

ings,

essential
interest
be

Murray Shields

-

was

that
-rates

permitted

whole

V

money
<

,

The decline in bonds which thus

v

there

N

easily

;

oi ing pictures.
t. these can be

be

,•

the. spoken

ii

panicxy

nrincioal

to develop, the
prices would al¬
most surely go far too far, do far
too much damage, and have far
decline

too

in

take,

.

-

i

«which
ests

is'

inter-

me

to;have

a

I

can

and

have

talk

adverse

effect

an

dence.

effectiveness
the

confi¬

on

eases

worse

Federal

Reserve

rest

were

abilities

are

within

lar

Of

to

mx

All

be

vvtu

ww

if fixed interest
to

were

become

far

as

most

as

oblhTa-

might"well be the case if
process of * wage inflation is

into

paper

-:

and

...

,

.

.

.

«.

.

.

Great

.

by

words

on

of

use

sheet

a

to

"

a

that

clear

became

if

every

'■
feasible:

^e"tatl°"

family, i
every

-and

corporation

every

municipaht^ were-to^be

supplied with all the .credit they
wanted to expand their expendi-

are

w.i.....qW1.Mre

tures, the
luiesr lilt;
be

lor.

be

.

for

demands

more

1

and

are'available

than

workers

revival in confidence
revival, in confidence

stock

market

early

1956,

rise

vast

and

which

ciftiotinn-

a

tight that business

so

mcwu

wirienpe

.

tions
tions.

h

d

.

The
nie

Reserve
xxeservc

Federal
reueiai

about-as far

of

t

Tt
It is e
essential

f*
,h
with

our

Some years ago there

creased

has

gone
nas^wuc,, .

^

-

J*;

-

..

t

techniques.^ It Is

fhef^"it i^ggSted

in all

waae

,

measures

...siu

so

are

severe

aavenisemems,
and

even

.phonetic spelling.

Stopping Wage Inflation

^hafires of
in--^uminty that the following steps
the fires of wage in- ^e taken without delay:
But credit restraint will
wage inflation unless^he
The highest officials in the Ad-

t}-°^
^Icition.

L

letters,

•

•

circulars

cn cuiais,

menus

witn

.

it can in the use

as

monetary.'

,.

...

e£,

.

.,

.

..

ministration should, in public ad-

Whether he did
^

« to amuse the~guests or to

SS^n^thtag
for

must

he

succeed,

t.aus?ht.

all

nhi»nptu»

nearby,
V

<

phonographs, how¬
turn ;the waving motions

ever,

Radio^"cor.

omened
°
ans e{.rinS
,.

these

.

:tU1.

is

aueaay

woids

in o

v"~."-----

■

lines which
lmes whlch

wavy

some

experts

-phis would be the ideal

/.f wouia oe tne iaeai

:

system; but h would require ^heuse of almost a new written script

ite'ttat Even be taught
eould

taling. machines, to
phildren

anyone,

which have been produced by the
spoken words into electric waves

to' every cliild.

this, however, is not

of these.revolutionary die-

any

that

so

fine

was a

advertisements'

..

.

movementa

The modern

which. promotojl.the-Dewey Pho- '
ueuc Spelling.
opening,
ivir. newey wrote
Mr. Dewey wrote

eroi

they

a wax cylinder, after

could hear them.

Ret«rnin- to Phonetic Spelling

deal

immediately

*

,
only threat to

th
,
the

we

invented

produced
these
spoken
words.
"With a large horn the sound .'in¬

iui

m

foreicnS5.

that

aff«ressivelv

k

cfabllitv
J>btpiri„iJhe.i,UPd§<; nee^d.-lor^^^V^^^A-"stabilitv*
stability,
y'
namely, wage inflation. a
•
-

thaf^the^^FedSalXJy?S^ot ^P
restraining
e-

can-

?t fi3

.

"

threatened

get out of hand in a super boom.
cnv,

become

durdur

In

vuiwii6

improving its cost position.

.

..

■in^-Tq54-'waV followed^hv"a

?n

in

Money .should not be permitted to

xomrnodities. tharu eauld-riOjt

more

produced.

The
The

which requires prodigious invest-

liieviiduic tjiicti wuuiu
.inevitable effect would

create

to

.j

_

Edison

at the other end, moved a thin
being metal diaphragm and faintly'.re ¬

i-Ww;

^

Thomas

weie exaggeiated by levers which,

ol

a"d- hav« something come out
The only
methods of
biitateo of^ch anyone can read.
This
offsetting increased- productivity JSmifelSh^egn^hity* The danger wouW "0t reqmre 8 typist"
_wage inf1 atTon »
'
through
®
■

telegraph will

typewriter.

a

efforts, however,

12 months thereafter the levels of

ly.

the

were purely mechanical.
Every
sP°ken word made a wavy .in-

,

: It

came

^he original phonographs,

The white-hot ideological war made to* eliminate: the need for
level which would provide a. more busiriess and employrtient vwould'-^Jr1
cn^ commitnistSj tor trie so- ^his typist so that a person can
adequate incentive to save.
*be affected seriously and needless- caiiecl uncommitted nations ot trie dictate directly into a machine
rise

to

,•

*m<j.

although it requires forget-

When

-

written

tho

interests

the wonderful electronic machine
that is in their latest phonograph,

cylinder, or the Hat record, or the
electronic tape, and transfer it

unpopu-

,-i

systems,

system

tromc-phonograph and the mag.
Few persons reallzw

am

are doing good work
they go.
'

as

•

Com-netic tape.

machines, hownow need a pretty girl to
material from the wax

ever,

U11un-

as

the

different

ing-First

dictating

progress

well

nt

" I

4

ting the present alphabet and' rc
turning to the use of script writ

sive, but all

indis¬

and

future

-

"Shorthand''

the

electronic

progres-

chewed,

and,

nine

flectronic magnetic tape.

ohliea-

financial

world

our

wwin

to happen, the probthat

the

to

growth—might

tions

likely

in the next few months

if that

of

dermfned

b.'t, the money situato .become much

a

up

tion.is

such

our

'

.

and

the

Unless

of

of

;•

-

structure—which is the marvel of

pensable

;

v

everyone

f

T

\

into

which

^

\*

The Electronic Method of Writing

most

-

machine

Rover W. Babson

n<^^eroded ^Uhe" pany that tlle Soundscriber
is perhaps the most

bond

be, photo-

automation:;
Photography experts will mdtbu
^ T he: us-e. o f satisfied/until they can phdto,:h ;1 e c t r on i c s. graph thoughts, as well as words.

r

conditions

permitted

will

m o r e'use of; graphed like
a.' moving( object,
electronics - to This is almost",
approached--now

**

securityr- would

aimosx

It is possible that
possibl
developed so that

word

-

•

Either the recipfincomes would be

101

photog—
really a

by

•

undermined:.

"uu_

was

the place showing in television
thG^exP1-es~*
^o^wrirkers "in vsions^ori people's faces f&n fact,
factories*, This many
.listeners], haye^ the ability
i s known, a s to
read? the. lips'*' of- speakers.

ients of fixed
dealt a body blow; or the scale of
benefits would have to be lifted "
tremendous cost not only to the

develop" into

the

course,

ex

.will

dictaphone machines which trans-

stringency,

Of

raphy of still images

^he^vlstdrsS natinn''"*™08*®61"® out the other end!
if the Federal Reserved-fails to
J™'es*'°l out of bondi There are now several successful
take action to relieve the credit.
be.driven out of bonds

generated

through

the

on

structure.

G1l>»°_r &as>

•«

annual, rise in.

public social

method.

iter has been fairly orderly could,

were

,

a

effects

'

>The whole structure of private,

seriously disrup-

institutions,

credit

by

have

could

market

have

designed

policies-

but

'

\coal.

of Only 25 years. Any such
development might well confront
' us with some serious difficulties*.

•be

It Is Time for the Federal Reserve

'

.*

span

'

be
safe

,

kpur-1

'

will,

small

a

economists..s^The*

3%

a

efforts

develop

chasing power rof the dollar irr the.

f.

?

-inflation is "either*

that

greatest
to

the : price" level compounds Itself
" into a 50% erosion; in-the

.

"and refutes contention -that

fact is

"T1

reactor whl.ch will enable homes wonderful invention; then folto use "Wmum for fuel instead of lowed the photography of mov-

to take

anvone

n

requirements-a I notch;

reserve

The
made

litUe wage infla-

a

tion is* either not harmful
nr
>tion; is* either riot harmful or a
''good thing" as do some *of our

.

v

;.

By ROGER W. BABSON

Possibility of reproducing the spoken word in wavy lines,
phonetic words, or script writing is explored by Mr. Babson.

-' /

; v

It is not wise for

.

gests money

•v*

••

U

t\

Displacing the Typist

Administra¬

l'lationeers -to let the people—and
the unions — know that it views
alarm.

most serious economic

problem of wage- inflation. Author sug-v
supply be increased 3% ,in 1957r and commer-'

the

theprocess of wage inflation with

After praising

Federal Reserve credit restraint policy, as cour- ;
ageous, sound and reflecting the highest economic statesmanship, Mr. Shields advances several reasons supporting propo- ?'.*
sal that the Reserve should ease up credit a bit now, and urges
that non-monetary steps.be taken-without delay to stop the -

of

its public relations ap¬

use

paratus and'its powers of persua¬
sion in dealing with the union in•.

\

y.-':x

'

'

to bargain
aggressively
enough to hold wage inflation- in
check, and
"
^

tion to

^

'

Senior Partner, MacKay-Shields Associates, New York City

■■

u

»

concerns
*

'

Monetary
Attack Upon Wage Inflation

•\

•

.

-

,

scare

^

-

.

...

music

fev-

so
,

.

.

an

;en-

which
all
and

boom? which worild; pf course^ set
-the stage for a slump later on.
:
-:

The full employment

,

requires not only that

*

'

.

Federal

t

suggested

philosophy greSsi.vely

the

that

Let

torag-'/,
Administration-should ap-money... That P°mt a distinguished committee ot

ReServe- go
• easy

hack

t

me

explain their three differ-

international

Easiness

wouid f under

circumstances

the

Reserve^be us6d

to-prG-vent pros"/+ bat the
from ^degenerating" into, a pand* by

perity

boom—with

wild

-

its J inevitable

sequel."
The-Federal

1;

Reserve

t^at

ex-

its probuble long rsnge effects 3nd

roughly .3%.in 1957, and
commercial

the

have the

"

will

will

banks

that- money

clear

now

moderately

tightened
causing

depression,

a

could

i t h

w

be

t

o u

of their

amount

Government

mass unem-

or any
decline in the
national product. By acting
so
promptly and with such moderation, the Federal. Reserve has

ate

securities.

-the

in

the

This

can

market

open

' are

moved

down

a

Orvis

"

«

-

-'

Policy

-

.

However, • there are

erful

.

•-

the

reasons

Federal

for

some

suggesting

Reserve

most
-

should

problem

/pow-

iririair

today

that

ic

is

economic

serious

the

nation

inflation

which

confronting
urooro

wage

of

Co., 14 Wall
City, members

&

and

York

New

the

Stock

American

Exchanges, have announced

the following partnership changes,
which became effective Jan. 1.
Warner

originates in—

now

Brothers

Street, New York

What to Do About Wage Inflation

.

.

Reasons for Easing Up Credit

Orvis has retired

D.

up a

bit:

' v

xhe

- •
unions

-

in

the

general

on

conferred

pavers

legislation

the

a

of

the

come

•

*

for

.

City..

,

.

•

,.

j

.

,

.

f

•^..

„'

■,

.

«

industries and individual business-.-from the firm.
•

'

*'♦

•

—

by man's imagination alone—that's the future

electronics.

An

eleven billion

dollar

that could double in volume within

a

a

year

industry

decade.

are

some

of the stocks

we

make markets in, or

find markets for—

Ampex Corp.

P. R.

Amphenol Electronics Corp.

Packard-Bell Co.

Collins Radio Co.

Sprague Electric Co.

Electronic Associates,
Giannini

Mallory & Co., Inc.

Inc.

(G. M.) & Co., Inc.

Topp Industries, Inc.

For

current

quotes,

Varian Associates

simply contact

Trading Department

7

•

*

.

*

*

-

-

.

Merrill Lynch, Pierce, Fenner & Beane
70 PINE STREET

NEW YORK

-

,

Power Co. System, New :York



Limited

Offices in 107 Cities

Co.,
;

a

.

.

M. Kidder &

as

partner and will belimited partner.
•
We have reached a level of in- past,
which have been used by
Edward W. Klussmann, Rudolph
terest rates and bond yields which them to demand and obtain an- G. Nettel, Robert H. Clayton, Jr.,
will
in
time
stimulate
savings, nual increases in wage rates—in- and Edwin J. Fitzpatrick have
Any further advance in such rates eluding fringes—far in excess of been admitted to the firm as genwould have little effect on saving, any possible increase in produc- eral partners.
tivity.
William F. Bohner, formerly a
* An address before-the Executive Con^
Th
faiiure of the pace-setting general
partner has withdrawn
ferenee
of
the
American
and
Foreign
A~

ease

with A.

400 Beach Drive North.

NO END IN SIGHT

Here

Partnership Changes

of

'*

*

-

nected

Opportunities for investors?

Orvis Bros. Announce

or

•

\

their efforts to educate the public
aGd their members concerning t e
iniquities of wage inflation and
prepare
programs
designed to
counter it.

Government '

requirements

reserve

topping off the boom the ;banks
plunging the nation into' notch.

"

S.

amount of U.

securities
jf

ST. PETERSBURG, Fla.—Francis M. Sumner has become con.

;

erai

succeeded in.

depression.

holdings of U. S.

.

The.major business associations
the\ countiy should intensify

easily be accomplished if the FedReserve purchases a moderr

ployment

gross

without

sPiral can be stopped.

needed to per-

reseryes

>

•'

(Special to The Financial Chronicle) ,*

•

devise means by which the wage

supply

money

policy of,
them to expand commercial
restraint was courageous, basically ^or
mortgage loans by '$5 to $7 brlsound* and reflected the highest
Hon without being forced to sell
economic statesmanship. And it is more
than
a
moderate
further

"

•

the* government be used vigor-

Of

a

the nation's leading businessmen,

With A. M. Kidder Co.;

Mi-

fne International Business -Ma
^'U^th^g short ofSS:, bankers,-economists, union leaders have its machine use hoping to
chmes Corporation is the same
.pusly to prevent recessions from what seems to be-called- for is -and. educators tcj make a compre' we now use in letters,
spiralling into deflation, but also mereiy that the' Federal '.Reserve, henstve" study ot the whole quesEastman
Kodak
Company
that the mechanism of the Federal
should ease up enough to assure tion - ol' wage inflation, estimate
bring out a
photographic
every power

en^oy'

mPthods of approach.

5, N. Y.

12

The Commercial and Financial Chronicle

(12)

10%

over

Electric

*

Utility's Future

HERBERT R.

By

Bright future electric

tion

World"

bil-

32

6%

of
add

larger

are:

holding

new

This

treating,

costs

also

3.1

1955

Thursday, January 3, 1957

(A)
be

if

a<<;Wmp that

we

utiiities

thnrn will

weTrlsure^lIhe

inflation
will

press

for

such

rate

showed

survey

are

aged

.

(Q) How (ibout the regulatory
picture of the future?—

generating

units, higher pressures and ternperatures, centralized control, and
outdoor design.

total

can

we

for the costs

reasons

steadily

.

mills

operating levels before state commissions
They aver^that will preserve the
integrity of

down.

kwhr.

net

per

in

the investment.

It should be made

against about 3.5 mills in,clear to the state
public service
fuel was the larg- commissions that institutional inDepai tment j t o r e s, shopping est
expense
totaling 83% of. the vestors are
becoming more and
centers, office buildings, and other
total as compared with 80% in more of a factor as to
commercial
utility secucustomers
have
ac1952.
About 65% of the stations
*"
—
lo.uuiiiy sec
rities.
These investors will s^udy
cepted
all-electric
living.
They showed maintenance
expenses of
the comparative
have
regulatory treat¬
been
installing
brilliant on]y 0.20 of a mill per kwhr.
ment of the
companies and will
lighting
effects,
complete
air- versus 0.25 mills in 1950 and 1952.
buy and sell the securities ac¬
conditioning, along with electric
cordingly.
:
Operating Costs
cooking, calculating machines,

notes need to increase rates due

entry into utility securities;

Some

control devices, lighting
air conditiornng, etc. are-other loads that
are being added at a :fast late.

ance needs, involving entire power industry expenditure of
$20.2 billion for 1957-1060 period and estimated to require
$10 billion in new money by power companies alone. Mr.
Frankel comments on the significance of institutional investor?'
creeping inflation; finds steam plant costs are holding very

to

1956.

uses^Jqr heating steel furnaces.
electric heat

kwh. sales, and appli¬

energy

This ,is

To all this

Electric

expansion is pictured by Electrical
of added capacity, industry spending,

World editor in terms

reached

now

kwhr

sales

for

sales

magnesium reduc-

v.

power

industrial-commercial-residential

total

has

use

lion

FRANKEL*

Managing News Editor of "Electrical

of

Aluminum and

.

as

Of course,

1952.

•"

.

well, and utility operating ratio has been steadily declining;
and states "we are now on a 'knowledge plateau' as far as
nuclear power reactors are
Tvwf

f

r

srrs,,

of you

Most

Smith.

heard

Thp

ot

Joe

didn't get the

he

if

Even

nf

hwrc]

have

lighting
ngniing

Better
tscuu

tnem.

appliances,

presidency,

Amer-

average

ican

and
hi s

man;

and

he

missus are the
o£

foundation

American

our

pcnnomv.

To

be

Let's

commercial

is
is

use*
use,

one
one

year-round

and

industrial

and

de-

we

Utility
billion

in

14%

1957,
Iftfin

.Rv

By

higher than
nrerlirt
predict $5 fi
$5.6

wo

1960

we

billion and

start

1970

with

by 1970, over $11 bilSpending between 1956 and

non.

demands

mil¬

the

lions
and

make

which
up

-

7

#

_

our

Directly
plant
plant,
factory,
faf'tnrv

protect them.

The resulting capacity additions
likewise will.show, 'substantial in-

As year

Q ft
9.6

million
millirvn

tur
kw.

qonaqitv
capacity

yvill be added in 1957—-a 3.2 million
kw.
gaiii
over
1956's
6.4
million.

This

will

rate

increase

that by

keep in step to meet them.

is estimated to be nuclear energy.

the Smiths are

Each

lot.

bigger

and

conveniences
In fact

want

homes,

better
and

more

luxuries.

less

And

work

they

and effort. The
the

Smiths

is

want

and

through

tne

electrical

more

i

.in.,

in which

what

they

of more

use

America

ahead

of

the

spending

estimates

are

the

electric
ii

keeping

demands

electric

power companies are
spending at the rate of about 75%
of the total industry. If this 75%
is
applied to the $20.2 billion,

these power companies will spend

t

is

well

of

the

O

Lllli

$15-2

4

/^i-.

billion

r.«v4-

v,

frxnM

in the next
four
We actimatc. that about $10
estimate thof il.nnf
Wo

vearc

years.

billion

"new

in

needed

by

lowering the cost of electricity to

balance

will

make it

money"

will

be

sources,..

Smiths.

At

the

time

same

economical

more

it

for

is

new

household applications.

This

and

Mrs. Joe

p0Wer

168 million Mr.

are

Smiths

and

all

the

that

it

tions

the

companies.

By 1960 the popula-

Let

tion

around

from

come

quick

a

The

internal

expansion

picture
of

the

of

the

electric

industry. It was so rapid
probably left many ques-

unanswered

little Smiths.

in

minds,

your

them,

will

be

and

by 1970,
expected
213
realize that

179

there

be

of

the

number

increase

to

the

of

end

1956.

over

of

a

metro¬

households wilt

nearly

1957,

51

a

million

24%

to

answer

of

some

by

increase

By 1960 it is estimated

Output Growth

How

fast

will

be

55

million

house¬

holds and by 1970, over 69 million.
The
electric
power
industry is

The

the

of

1956

■>

.

industry

1955.

the

over

.

is

This

same

compared

:

mission

months

with

in

16.2%

50

million

by

1970,

will

nearly

be

64

million.
will

be

Disposable

around

$289

Income

billion

this

3% above 1956, $325 billion
by 1960, and $463 billion by 1970.-

year,

Now what is each Joe Smitn
going
to do with this extra income?
For
one

thing,

more

bill

he

of it for

in

1956

is going to spend
electricity. His $78

will

be

31% higher
by 1960 and 138% higher by 1970.
watt

-

hoims^€Riit^h(vttf
.

ui

iiuw

*An

the

address
by Mr.
Regional Ccnvention

ie

o

ecuri

y

na

'

•

_

1955

compared with aroprrd
$300 lor automobiles. This family
spent $73 for electrical energy to
as

!ii

..

. i-

illustrates

.

_

the

i.-«

•

wm

ne

Frankef

use

before

of ihe New York
ysts.




and

weeks

year

were

use,

same

was

12.1%

mereial

7.9%

above

the

a

AEC

over

the

jncome

reaches around $6,700 by
1970,.we believe this family will
Spend $250 a year for appliances,

$175 for electricity which in total
amount

to '.

Smiths' income.

tricity
of

will

6 ,/2 %

The

per

oi

:

tht

f„,

dollar

revenue
m

ff:

p

penditures for
cate

whilp

be

tainly not

be

as

reMMM

an

elec-

average

today to

year

power?

%

1 iticaJ

considerations

clear4that

ever,

in

.

indi-

will

have

we-

'E. N. Strait, who
,

was

Chairman

WHicnn

~rtC,r^
about the effect

they will cerlarge as. experi-

utilities

-on

'

!

.

say

holds

of

Rate

inflation

1948 'which

ih

true

still

;today: "In a period of
;,- * v* What is trie future of house spiraling inflation, one can m&inheating, „,;
-;tain his proper economic position
(A) Electric-house heating is only by keeping his own-income
being stimulated-by the growth in relatively abreast that of others.
air conditioning because Utilities
It' is up jtd management
.

.

..

,

,

„

—

„

.

{hot

.

need' this

load-to

Winter

„.,

balance

only to find

J

—

—

J.1

means
^

i

of raising ad -

J

the price and Availability of gas improve the take-home wage's of
and:.- fuel oil, and the insulation the"-invested capital ot its -stockof the home. Electric heating is holders.
This, requires that /the
now being sold-at between'114c management seek, and the regulathe

It

is

in-

i

^

oT

idiead

coming

our

power
requirePublic-power • advocates
push for government-built

ments.

Some
in

sincere

minded

plants,

individuals

Washington believe such

gram

is the only

of maintaining
and of

getting

nuclear

our

a

pro-

haye

we

prestige abroad

our

share of foreign

markets.

More

utilities

together in small groups

area-basis

an

Look

means

lnrgc

for

and

propose

powd*

other

rcsctors.

electric

utility

-

-

to

-

plans

announce

than

greater

for. the

to

larger

re-

actors. However, the smaller reactors provide opportunity to gain
operating

and

maintenance

will' result

and

more

convinced

more

ex-

penence on more types of reactors
for

n

so

important

as

it might

concerned.

We will not gain

Nearly

one

to the end of

The

The

Heat

Pump

superior features

of

elec-

annually.

room-by-room ternnl
Perafure control,'.elimination of
hpalino''Cv«;lpm
pfr>
central heating system, etc.—can
sel1 11 on its own merils- In fact
man^ industlT sales people point
out that the step from oil or gas
electricity in terms of cost, is
^ss
a iumP than the one made
from w°od stoves to coal-fired
cen*ral systems and then to oil
and gas- These sales people feel
fhat as hoth gas and fuel oil costs
rise over the years, the heat pump
ivnl

*'

t

m

mof

1

An

r\

Future

some

operating

data

that will be of interest to all.

What

is

happening

f

(Q) Do people have all the

ran

.

Octobr

r

stations

in

,

(A) The

is an emphatic
Co.-just recently

answer

Hotpoint

pleased

a study-that,Ahows that
than 170 million; major appliances will be put on the U. S.
market place in the next 10 years.
more

Even after these appliances are
on the market, Hotpoint estimates

that in 1966 the percent.of saturation

of

automatic

washers

will

So

year.

you

can

see

how impor-

Jea^- So load is.
tant this you can see how impor
;

.

air

conditioners, 30%.

sales

•

are

,

.•

c

167

,

Zs

1ar

Television

expected to be 7.2 mil-

lion units in 1956 of which 175,000
.

^ co1^
be sold

a's

1961f' 9

alize(I ^preciation)^ as jar as
*ts aPPllcatl<™ to electric utilities

f0ur miHion will be color.

l» concerned

are

within the

talk

talk Y

.

least

the

Federal

jnission has some doubts a^out
,

.

,

,

.

,

.

.

m re§UAatea industries,

which
ruled
of

have

been

state
on

Section

Indiana

four

in

have

rate-making aspects
167.

have

^

Legislation

•

—

outlook?

Oklahoma

ruled

(A) These bills will probably
^ intrG(juce(j jn the next session
„f
:
of Pnnarflcc in January:
Congress in Tannarv
Possible reorganization of
Energy Commission.
Another Gore bill to build
power reactors with Fed ral monthe Atomic

cases

commissions

the

^

(1)

Normalized Taxes

There

1957

'(QylVhtit about the Washington

Power Com¬

tile need IOF llDerallZed deprecia:.

Possible
->

These

all Hotpoint estimates.

Administration to

f, ^aministratlr^1 to

i

7

■

.

.

fannually, of which

and

(2)

eY- The original Gore bill would
have directed the Atomic Energy

the

that

is

to

let

favorably—

utilities

normalize

..

holding"

are
aic-iraiuiug

An f'Electrical World"
54
steam

ap-

pliances they want?

Commission to build six plants of
different design.
taxes-for rate making. The other *
Atomic Energy Commission
vvcil.
well." state, JTCiiiis v i vcl mc», l Llicu au v
SLcllc, Pennsylvania, ruled adversestaff is now talking about a direct

to

of steam plants?

:

Appliance Output

become a progressively more pettily <be 49.7%^* electric dryers,
affractive installation. A home 31.2%;- cabinet ranges, 29.2%;
^
/?? i^ncBting dishwashers, 19.7%j water hesters,
will use 12,000 to 20,000 kwhr. per 23.8%; freezers, 28.9% and room

at

any

*

100%? utilization of fuel,

cleanliness,

operated,
million kw. of atomic

getting

From 1948

1955 it received per¬

increase rates by over $300 million

are

Cower isend of 1960. Then we'll
scheduled for operations
y the
be

revenue.sufficient,

ing for rate increases.

seem,

am

nuclear power reactors

in

this time the industry began ask-

that the price consideration is not

fpnlral

.

ever-increasing
w\\\

top^- authority allow, rates which

Proper insulation of the house is jn the aggregate, to yield reasonimportant in keeping down the able returns measured by present
cost of electricity. Industry is be- economic relationships." Around

i^*ic heat

how—
run

>

kwhr. in areas.served by
utility
companies,

a

electric

mission from state commissions to

the'long

•

keeping*

our

(A) v/uou
Costs

The industrial load has been

qx-

defense,

'° come"

r

definitely

.

will

power
i

sure

-

.

atomic

V"/

sales fare?

our

that

me

deerea^ of Edison Electric Institute's

enced from .1948:to date.
>

(A) The immediate future of
atomic power is clouded by po-

(Q)

kwhr.

to

of

t

further

ted

labor

creeping inflation for some years

more uiicieiudiiu duiumdiic optrj,4;nn(,

the

nf

because

ri

„

into

,

™ L|™P'd.?w

'the and 2c

.

of

use

from

go

3,000 kwhr.

cost

...ill

and

iopf

built

that

contracts, and the continued

for

reason

been

of

some

escalations

relatively
small the summer, demand.-Electricity. ditional borroiwed capital at reainto living better as an economical beating source -sonable going >rates of interest' but
average Smiths' depends on theregion—its climate," also to seek to do sbmething to

amount that goes

nn.

period of 1956

rj

Tne

particularly

automatic

have

ana

around

as

Future Sales Prospects
rr\\

be

far

10.5%

up

thi

1956.

lor.

44.4%

was

wiU

tt

,t' :

event?

wages,

the

48%. At

was

continued

Eliminating

output

1955 it

in

to total

expanses

f^ivpn
given pvnpnHitiivp
expenditure. Wo are cancel it for all taxpayers, There.
We
are
in addition indications, that-^
now on a "knowledge plateau" as

up

Creeping Inflation

,

However,

sales

1956,

43.7%

}

,f

maintenanr^ and
maintenance fnH

a

Total output amounted

of

ago.

Predicts

for

to 458.6 billion kwhrs. for the first

41

the

electrically. As the

n

year ago.

to

(Q)
Hoiv about inflation and
how will electric utility securities

ti

^

estimated

is

v»

.

thic
acroinof
this vpar against 1 i Of. a X.^Pllh^tpntial now incicrhf into
year
11%
year ago.
substantial new insight into nuPeak load went to 94.8 million clear power reactors until several
kw. in July, a 6.2% increase over cf them are built and
a

Consumer

kwhr.

increase

the end of
it

foot

build, reactors in the 20,000 kw.
present, class.
The cost per kw. of the
were up
smaller reactor plants will be

period

installations.

to

and

year

mnrW

doubling

year ago. The drop was largely
due to leveling out of
power demariHc
mands hv Atomic Fnorrtv
by Afnmin Energy Comresidential

customers today or over 99%
of all the homes in U. S.
By 1960
over

;«

year per square

companies

ai

tial

served

first

This is nearly

occupancy.

20 kvvhn

building

industry

every 8 to
10 years at
Total energy kwhr. sales
12.1% for the first eight

serving nearly 46 million, residen¬

well

the

happen

In 1951 it

revenue)

It will require 31 mil-

^This

•

growing today?
(A)

is

_

there

building will
feet-o£

square

during

kwhr.

#„u
full

will band

(Q)

entire

Chicago's

tiy

Total

you

politan area?
The

This

-

million

lion
of

on

now

at

years

me

an

Do

population is

growing every two
rate
equivalent
to
population

million

will

million.

our

1.6

in

floor space.

ands financed nuclear power

is

"future
Growing Customers and Income

Today there

York.

have

Station

the

energy.

j

—

industry

New

Central

-

1 K

in

Today

utility

Grand

time

way

get

from

both

in

only

can

Socony IVTobil building across

ti

wales
wages,

other operating

office budding in that field

an

th

aries and

plans

with

want

measured

the

it

a

Smiths.

These

for the entire power industry, and
total $20.2 billion for the period

i

classification,
cite

to

1957-1960.
They are for power 8,000 kwhr. by 1970.
$ "
companies, municipal, state - and
:
power districts, cooperatives, and Nuclear Power and Steam Plants
Federal agencies. We estimate that
(Q)
What's ahead for atomic

more

higher standard of living
around
is
desired
by
the

all

so

demand-

a

they

year

like

This

fimutoH
timated

by year the Smiths grow more
demanding, our economy has to
And

for

—the

in

Spending

1970 the industry will
add capacity at the rate of 26.8
million kw. of which 2.4 million

irig

commercial

W(JUjcj

operate the Appliances" ;, whereas
,creases "Electrical World" survey -the cost of operating a car was
and in September showed that an es- ^at much for one
month.

mill, farm, commercial establishor-}
ment, or place of entertainment
exists solely to clothe, feed, enor

the
we

will

(A) As we predicted in 1952,
there has been a steady decline fare in that

"se aiound 32,00) kwm., lough-

,

What

utility operating ratio?

customer
cuaiomer

TOe average Smith family spertt
only $170 lor electrical appliances

and Industry

(Q)

expect

we

ly 2u, times today's consumption.
To $how the tremendous growth

rm.

triple.

Joe

Mrs.

Smiths

will

Added Capacity

Mr.

of

Herbert Frankel

every,
^

increased
along with

with the
Smiths

predict that the eleclrit
industry will spend $4.3

mands,

realistic, all

cvcl

up

the

of

1 qrk
1956.

economy

indirectly

keep

needs

By 1970

the average commereiai
u.e average commercial

nominatipn for vice- air conditioning and house heating
he did become the are others. The all-electric home
symbol of the will begin to become a. reality,

Republican

tertain,

smaller items.

concerned."

them*

more

water and drink coolers and many

very

_

survey of

the

U.

ly in two cases, wherein it

S.

in

uered utilities to

"1955 showed than 50%

of

Any

use

disallowance

to

or-

subsidy, for both public and pri-

actual taxes.- vate
a

utility to

development

demonstration

in

reactor

L;e

power

program.

the stations cost $129 or less per use normalized taxes under Sec- They even talk about
.changing
increasing at an accelerated-rale. -Irw
mcreasing at an accelerated; rate." kw: nf ivictaifoa pantmifp-KniMri tinn irv «rin nortniniv ronnird tfio the law if neeessarv. The Jaw -save
of installed capacity, to build tion 167 will certainly require the the law if necessary. The law jays
Taconite plants will be
big users and 70%. cost about $140 or less utility to seek additional funds "no subsidy."
However, under the
°f electric power. AEC is using per kw.1 This is a bit
below the which otherwise would have been power reactor program, the AEC
over
50
billion kwhr.
annually, per kilowatt cost of five years ago. generated internally.
has given enmd winfiMcifma «««/ ««
hae oiwen some concessions and/or

-

Taylor, Rogers &
C
J
Tracy rormeo
•

"subsidy" is on
basis.
•

mills per kwhr.

a

r

Liability insurance for nu¬
plants.
77

'(4)

(13)

Chronicle

The Commercial and Financial

.

.

.

idea being discussed on

One

aid.

Number 5600

185

Volume

broader, investment
service
to
Midwest investors. We have a firm

■

Hague & Co., Detroit, members of
New York and Detroit Stock Ex¬

13

Milchsll, Hufchins

changes; McDonald, Evans & Co.,
Kansas City; Taussig, Day & Co.,
of Chicago as an investment cen-and White & Co., St. Louis,
all

; belief in the growth of the City

Opens Memphis Office

MEMPHIS,
Tenn.N-r Mitchell,
,' Hutchins >&. Co., investment firm
Department, of
Chicago and New York, has anTaylor &
. headed by Mr. Keith, will include
nounced the opening of am office
(6) Legislation on some of the. the Midwest Stock Exchange, and , „ In addition to Mr. Longstaff as
William
O.
McGregor^ Paul. J. in
Hoover Commission recommenda¬
Memphis, Tenn., effective Jan. 1,
Rogers & Tracy, Trie., 39-year-old Chairmaa and Mr. Taylor as Pres- Skepnek, Jr. and Ralph R.'Randall.
tions
on
water
resources
and Chicago
investment
house,has ident,; other "officers will include The Investment Department per-^ /and the appointment of J. Stewart
Buxton and William E.'Buxton as
power;-'.. ;'77
S'J\ been announced. The consolidated' Clyde' H; Keith; Harold S. Bott, sonnell wilt- embrace Messrs.
resident managers. The two were
Another Niagara bill is' a pos-* firm'will
be,'known -asUTaylor,, Thomas7M. Hoyne II,
as Vice- Har.vey Wilson, Richard A. Sullisibilitv.. Although
formerly managing partners of E.
this situation Rogers & Tracy, Inc. 7y 7.7 * *'* 7 Presidents;-also John V. Maloney,
van,
Harry N. Nelson, William E. Buxton &
has "been dropped into the Federal
Co., which has been.
-The
announcement
was
made "Vice-President, -'member... of .the Simmons and Forbes S. Eastman!
Power Commission's lap, Congress, jointly - by
Ralph
S
Longstaff,!Midwest Stock Exchange and floor Activity in municipal bonds will ;'merged with!.Mitchell, Hutchins
& Co.•' _7. 77 7- '
may hold back until after the FPC President of Rogers & Tracy," and broker-forthe firm,
7'7 r"' \
Walter - M. be directed. by Mr.; Thomas M.
or
the courts have .ruled on the William L.
Taylor,;Jr./ President Schmidt will become Vice-Presi- Hoyne. - Messrs. • ...Longstaff. and
provisions of the 1930 treaty with of Taylor & Co.- The firm will? be dent and Secretary. Treasurer and
Taylor will supervise underwrit¬ 7, 7 With Sterling Sees. 7
Garijada.:
A number
.utility located at 105 S. LaSalle Street, Assistant -Secretary will be Ar*
*
! (Special 'to The Financial Chronicle)
ing and sales. 777777 77
'
>
lawyers are of the opipion that
conducting a general/ inyestment n?a.l1<^,
T?^meau*T Heade.Cashier / Enlarged air-conditioned space
-LOS ANGELES, Calif. — Nolan
FPC has no authority to issue a

clear power

of

members

(5) Tennessee Valley Authority^
bonfl financing.
*
7 777

Midwest

Stock

Trading.

Exchange;

Co! S ofMr. Longstaff and Mr. Taylor.

fZs

.

the

.

•

.

„

.

-

.

.

'

(8)

and

Omnibus Rivers
bill may be in the

Another

and' Harbors

as
as.

dealers " underwriters
aeaiers,Jun^erwntei:s

distributors.•

based

upon

a

"Our

desire

wlllr be Lepp^rt, Janson. Bros. &
Correwill be Sutro

offer

to

S. Lewis is

is b.eing made available at 105 S.
the LaSalle Street to accommodate
the expanded operation.
'"V.7
7
a New York Stock;Exchange; Smith,
.

action' is

New

members

York,

curities

of

with Sterling Se¬

now

Co.,

714

Spring

South

Street.

Last session of Congress

making.

passed this but it

vetoed by

was

because

President

the

business
busmess

7-,.'}7-77';

77

license.'

number

a

of

projects needed closer investi¬
gation. Bill called for $1.5 billion
flood
control,
navigation,
and
beach erosion projects. It included
$112 million for Columbia River
projects.
(9) Freeze Federal Power rates

c

'

-v

Administration

Southeastern

of

The Trust You Have Placed in Us

and Southwestern Power Adminis¬

tration'at

existing

levels.

How¬

ever,; the Comptroller General, in

study entitled

a

the'Findings
tions

of

the

on

the

the

present

related

of

net-loss

from
and its

loss

is

has

V-

■

\

•

is.

can

7

;

"

-

-7

■■

principles that guide our work

they

come

important to everyone who uses the telephone, everyone

seem

who works

for the business, and everyone who has

invested in it."
'S,

!>•

The only, thing
fair: opportunity
only from public

a

them here because

7

you that there
industry whose fu¬
bright as that of the

as

; need

which

'

:

ffect the lives of many people. We are printing

re¬

been

an

electric: utility.
we

a

remind

me

hardly

ture

telephone business is built on the idea of '

1943

$12,096,483 from 1950 to 1955.
Let

a

incurred

1955 and for SEP A

the

of

Corps,

seven

$13,425,531

lated-dams

is

\

Service.... And the

rates

power

Engineers dams have
to

y

the power phases

and

SWPA

of

The

Recommenda¬

Comptroller General
Federal Power Program"

Under

said:

of

Analysis

"An

and

the

FREDERICK
American

R. KAPPEL. President

Telephone, and Telegraph Company

opinion .and
regulatory
under¬
standing. You, the industry, and
.

ourselves
this

much

do

can

attain

to

end.

Wc

Elected Asst. V.-Ps. of
Harriman

7

-

Ripley Co.

tor Winter have

been

elected

Vice-Presidents

are necessary

building of

Edward J. Morehouse and Proc¬

sistant

perform

of great

As¬

telephone business are servants of the public.

the

in

our

nation and to our national security.

public trust.
are

'

--v.'

<

•

Vi" "

•;

7 it is in

our

cost to

the

•

7

Winter

Proctor

Ripley & Co., Incorporated, 7

Wall

New

Street,

investment

banking

of

Class

1941,

Winter has

Mr.

the

and

a

was

been

March, 1946.

of

Columbia

Mr.

Guard.

He is

a

staff

gradu¬

Business School,

During World War

Winter

Commander

member

a

Department

Buying

Class of 1941.

II,

!

'.:.. 1: r / ■. j ■, -

that

we

was

in

the

a

Dieutenant

U.

S.

steadily improving—at a
possible and at the same time keep the

that will always be as low as

good financial health.

,

depends

on

the people in it. To serve well and

and keep" capable , cmployecsl

have opportunity to advance in accordance

with ability.

we

must

continually develop first-rate leaders

for the future.

*

"Finally, it

seems to us

financing, good earnings,

Sd is the

research to find better means for giving

building of the human

better service.

organization and "character on which good service

depends. So is the training of leaders.

In all our undertakings, the long view is essential.

deserves, and will

understand the trust you have placed in Us.

continue to "receive, the most

It is a trust that

painstaking care we can give it.

'

(Special to The Financial Chronicle)

HILLS,

for the long run. Sound
all; long-term

reasonable and regular dividends—these arc

projects. So is our continual

This is the way we

*

BEVERLY

that it is always our duty to act

..

Co^st

Two With Great Western
Calif.

—

James A. Palmer and Sherwyn J.

Working together to bring people together

Turbow

BELL

Great

Santa

■

furnish the best telephone service

Bell 7 Telephone Companies must; attract

prosper- -

;. \

m

.>

provide—a service high in value and

ing World War II.

ate

.

since

Lieutenant in the U. S. Navy dur¬

since

;■

w;

the

of

fornia,

of

■

'vThc .successof the business

And

Buying DepattqieBt.77
July,7 1946; CHe is"Sa^[t:
graduate of "the University of Cali- ' : ber

individual who has put money in

.

Mr. Morehouse has been a menvr*

staff

v-.

They must be well paid and

it wasi

announced.
-

every

City,

York

firm,

of

responsibility that the business shall prosper.

ail-important therefore

power to
user

business in

63

Clearly, we occupy a position

7

-

(,v,■

•We think it

mad

7

also trustees for the savings

the business. It is our

-

people of the United States. They are necessary to the

Harri-

of

We

Edward J. Morehouse

to the

The services we

have

joined

Western

Monica

the staff

Securities,

Boulevard.




of

9685

TELEPHONE

SYSTEM

f

»>•'

n

(i4)

The Commercial and Financial Chronicle :.. Thursday,

and

Department Survey
Indicates Good Prospects Ahead
Continued good

predicted by Sinclair Weeks

^

,

Furniture

for

the

'..'w

The

Secretary of Commerce Sinclair
"Weeks announced that a year-end
f

of

by the Commerce Depart¬
Business
and
Defense

urvey

ment's

Ad-.

.*

-

-

indicates,
most

same

that

te

a

first

producand

rates

for

first

six

prospect will depend
availability of produci ion materials, particularly certain

shapes' of

steel

for

v/hich demand exceeds production

25

Industries

BDSA, of which
McCoy is Administrator.

better

approximate 4.23 " bil¬
pounds, or /6%
more
than

The

is

good(

industry
remain
hrough the first half of

t
1957.
Demand for almost all products is
; t
record level
and promises to

ontinue

in

view

of

increasing

eeds of business and government
for capital goods and construction,

s

.bteel

plates,
structural
shapes,
some
types of tubular prod.

jewelry,

months

aluminum

supply, situation
in the first six
months of 1957 is
to

likely

be

than

more

during

be

in

Some

other

short
supply, and
though the steel industry,expects
step up its expansion program
\ ery
substantially in
1957, the
t ght supply situation is not
likely

be

alleviated for

time

some

to

record

volume of

evident for

Record

1957

volume

involves

steel

requirements

for

lachinery,
construction,
shipuilding, oil and gas, and freight
building should keep the steel
'industry operating at capacity for
3

fne first helf of the year. Demand
or sheet steel for the
automotive

f

and

3

is

other

consumer

also .expected

to

be

igher than iri the closing months
f 1596.

c

The

of-ne w

will

.advance

costume

in^

an

Sales of precious

f

me

at

comes

when consumers'

result

a

demand

1956.,.

sales

ft

the

in

iqik

bilfiom

of

last

summer's

as

steel

crike. While the
three-year labor

contract

may

incentive

part

remove

to

of

high

carry

the

inven¬

tories, an increase in steel stocks
3 i likely to
be necessary for effi¬
cient

operations.

All

of

these

i

ito

t

dould

result

3

ecord

combine

Copper:

which

all-time

new

for

first

to

to

of

half

be

the

refined
of

1957

adequate

for

demand,

consumer

liveries
nd

a

supply

the

expected

domestic
t

in

The

for

copper

Si

requirements

production for
six months of 1957.

i irst

de¬

government

account,

export, provided

no

pro¬

longed work stoppage occurs. It is
* stimated
that domestic consumer
demand
<

for

the

first

six

months

f 1597 will be
quite

strong at the
3 eginning of the
period, tapering

c.ff
i

in

the

nticipated

i ng

Spring months
decline

in

with

new

an

hous-

starts.

Copper wire mills probably will
e

xpand

in

their

the

production

January-June
of

cause

increasing

slightly

period

be¬
and

power

communications requirements for
\ rire.
Brass
mills, on the other
I and,
may experience a further
^

crop

duced

in

production

rate

of

704

•

were

nine

and
V

.

Chemicals:

t-

1956 totaled

which

turbine,

■

.

(-

Increased

„

that

?:

of

the

period

due

private

to

a

re¬

non-farm




AgricuUurai

would,

corre-,

with-

represent

.advance

the

about

six

sales

.over

; a-

in;.the

months. of

pro-

first

Machinery,

of

1957

.

because

production

biles,- which

n.d

a

half

increased

of

the

automo¬

raise

will

of

demand

for tires and other rubber
prod¬
a, ucts ** for
original - automotive
irjodest increasej ip prodbcticra ahd
equipment.", Continuance of iife
sales of. farm equipment in the
dustrial
expansions- will sustain,
first half of 1957 over .the f-rst
and probably increase demand for

Equipment:

-

Trends

indicate

.

.

..

six'

months

,

of "

1936".-

Principal

-

rubber

belting^hose, packing, and

manufacturers feel that. 1956 pro-, other industrial
rubber
arid

sales

"Construction

have

hit

bot-

nprinH

u

pencil

Ln.id

ii-h

goods, .at
during the first "six months

least
of

the

•

year.

p os

^Te

Pro-.

duction of construction machinery,

$1 V

and

Lumber:

Machinery:

feet

me-

industry .also

is

oeriod
penqq in
in

construction

1956

"

iyoo.,

r

<
,

penod

January-June,

1957,•

are

estimated at $410 million, as compared
estimated $39.4.3 mif-r

Vn-L

the comparable period ih

the

be slightly

may

1U8

produced

billion

Jn

-

board

the", first

six

-

months of

sufficient

nlate'" and"

1956, chiefly because of
the. anticipated decline in resi->

'sfructimdl

-

is:available

dential

to

types,, kinds <,;and sizes
chinery remains firm.

<juction

ma-

demand- during the last
of
1956 : will
probably
carry over into the new year.
- / -

■>."

Plywood: The softwood plywood

lOtn con¬
secutive production record in 1956

shipment Of mining
with
machinery in the first six-months*
0f 1957 over the last half of 1956 5,190
js anticipated.; Here again the faoutlook

for

1957

depends

.

industry established its

and

vorable

housing starts. The sharply

reduced

quarter

of

Machine Tools:
Shipments^, of
Mining Machinery and Equipcutting type machine tools in the.
ment:
A; slight advance in pro-

'

than

-output- of -approximately
feet,
%"
an .increase of nearly 6%

an

millionsquare

basis,
'

1955./

over'

The

1956

production

.<on, the continuing availability of Jevel is expected to hold through
against;^the heavy steel plate and structural, the first half bf 1957. Hardwood
estimate of $505jmillion lor the
.
•- plywood
production in 1956 was
first half of 1956
v
"
'
Oil Field Machinery and Equip- 8% belowthe comparable 1955
4

level,

increase

reaching

billion

in

over

this

total

a

1957.- Public

year's

of

„,,

$31.4

'ot'

Shipments

__

_

.

,

_

.

and

tion outlays,

Increased-exports of crude

shaping machine

tools in the first

much

half

expected,to

j,nLI<c
.nen s<?n. 111 de
M.ddle East,drilling activity post-

-

construc¬

however, may rise as
12%,~ to $15 billion.'"'"

as

Prospects are-that about

1

compared with

1.1
of

an

average

an¬

(seasonally adjusted) of

million for the first

1956, and

1955

a

io

total

1957-are

1.310

lion,

Privately-owned public utilities

$145

expansion

nificant
natural
power

dollar

increases

being in

pipelines and electric

gas

facilities.

estimated

industrial

plant

struction will continue to

con-

expand

1957, but at a slower rate than
during the past two years, accord¬
ing to present indications.
The
$3.2 billion expected to be put rm
place on industrial

bulidings next
year will be an all-time
high,""ex¬
ceeding 1956 in volume by 5%,
and

1955

Textiles:

prices

by 33%.

-

Consumer Durable Goods: The
outlook for sales in consumer
dur¬
able
goods in the first half of

1957,

though spotty in some in¬
stances, is in the main encourag¬
ing. Inventories of household
ap¬

ward

-

Broad

ing opinion is for another
breaking year in 1957. It
mated

that

unit

sales

dryers, and-ironers

of

is

6,425,000,

to

unit

sales

esti¬

washers,

next year

approximate

5,702,859

record

will

compared
in

1955

woven

made fibers

p

i

e c e

and

for

further

a

the

first

decline

half of

is

1

1957.

over

and

poor

im-

goods

mani

of

a

year.

until

strong

There

there

and

are

some

is

a

return

demand

and

worsteds

to

for

the like.

,

appear

bright spot in the textile
but here it is difficult to

a

a

clear-cut

appraisal.

Ex-

productive

United

States

exists,

but

to

machinery

pected

be

to

trp

and

are

ex-

approximately

15%.

1957

This,
with

a

industry goes
backlog of -or-

raise

a

the

over

backlog at the beginning of 1956,
,

.

.

,

,

.

.

and the highest peak

cloth

••r

'

but

at

more, moderate

a

through the first half of 1957.

Newspaper advertising lineage in
the-first

half

expected

to

of

the

new

increase

3

...

u

since World

Total tonnage of
going ships under contract

United

situation

has

at

wool

goods mills
prices jn line with

costs.

Automobiles Trucks, Etc.: Production of 3,400,000 automobiles is

States

yards

is

ex-

pected to increase slightly in the
first half of 1957 due to staturation of foreign

shipyards, a world
shortage, of
shipbuilding

wide

steel and recent-interest

However,

ers.

factors
U.

S.

these

not

are

total

shipbuilding
waterways
construction

in

to

3%

contracts

industry.
barge
and
is

tank-

combined

expected

shipbuilding to

world's

expected

raise

of

for

the
the

Inland

3.5%

expected

to

sales

be

Estimated

around

increase

for

1957

another

sales will

$825

million, a 10%
corresponding 1956

over

'

sales.

Pulp,

■'

An

Paper

all-time

board

.

.

;.

Paperboards:

in

and

paper

will

have

been

in

put

1956, with total out¬
approximating,. 31.5 million

tons

or

1955.

pected
nage

about 5%

greater than in

The first half of 1957

to

show

increase

and

that

year

will

is

ex¬

moderate, ton¬

a

the 1956 level,

over

production
run

in

the

new

close to actual

con¬

sumption needs.

*

.

Communications:

The 1957

con¬

to

ing telephone and telegraph com¬
panies will be the largest ever un¬
dertaken by the industry and is

con-

program of the operat¬

expected
19%

the

building and in inland barges and

The

effect

tow-boats is hampered by lagging
steel deliveries.

Cars:

high

production

recorded

locating new
along
the
principal
waterways. Construction in ship-

Freight

and

struction

toward

Railroad

a

Book publishers'

headed

appear,,

record.

with

upward

move

gain of 4 to 5%.

towboat

tinue at its present rapid rate due
to the recent trend of heavy in-

-

is

year

to

corresponding 1956 lineage.
Magazine advertising lineage is

.

Shipbuilding:
ocean

in

capacity of the dustries
industry no longer facilities

the

permitted

higher wool

increase

over

Aircraft:
into

whole have bean

a

consumer

Woolens

least

'^'-e£ the corresponding period of
19o6.
Oil
field

,

as

signs
of
firming prices
and
slightly
better demand in thd
coming year,
but real relief
probably will not

cess

vertising media, will continue to
rate

the first half, of 1957

in

goods .equipment sales -therefore

depressed for some time, with the
exception of fabrics utilizing the
newer
non-cellulosics, which have
shown substantial
gains in output.
Nylon fabrics
and
rayon
staples have been depressed for

Optim¬

laundry equip¬
industry, where the prevail¬

output,
seen

'n.„t,h« nnmber of wells to be

drilled

righTaMeT Jan."i; ders in airframp and components
nKft"* C1Q
estimated at about $19 billionone-third
increase

-

the
to be
next six months will
equal or ex-'
ceed slightly sales for
the corre¬ field,
make
sponding period of 1956.
ment

'

been

decidedly

crepes

ism is high in the

for

proved volume
&
the first part of f957 will be
v
poor
both from the
point of view of
profits and production.

25%

yet

mil-

period of 1956.
^

business has been
there is a

come

greater than last
year's,
is anticipated that sales in

$105
million

weak,- despite
higher costs brought about '* by
wage
increases in the fall.' For¬

pliances in the hands of manufac¬
turers and distributors
are about
it

at

$131

Cotton

have

unless

Private

,

in-

.

programs

suggest 1957 expenditures of about
$5,750 billion, with the most
sig¬

ap_

million,-.an

against

as

the comparable
-

announced

forming

are

.

months
of

1957

Printing and Publishing: Un¬
Poned in 19o6 because of the steel
precedented ^industrial expansion
crease of $2 million over
compar- lS.^'
3,1 an ensumg decline in in
1956 indicates that demand for
able shipments in the first
half oil country goods supply,,together
of 1956.
New orders for
forming ™lth
normal increase in U: S. printing and publishing services,
and
the
commercial
shaping types of. machinl demand for petroleum products particularly in
tools in the first six months
field
and
printed
ad¬
of all point to a susbtantial increase printing

new private non-farm dwel¬
ling units will be started in 1597,

nual rate

of

proximate

mil¬

lion

as

"

,,

Production during the

first half of 1957
less

equipment ancU repair-iparts in

and- nickel

anticipated

in

factors

steel

peak

of
gas

electric.

4.
•
torn and that the future trend will
half * of;
he upward

first

The fountahi

chanical

Because

a

inventories

reduced and out of balance

4 re

i

high

below

sifc,duction

S-fumroacC-a'

million.
This

September deliv¬
locomotive

New

order Nov. 1,

"

the

car

industry

5%

^

assumption that the
general level of economic activity

3

durables

to

3,444.

on

728
units,
diesel, 15

of

$44 billion

over

1956.

of

Indicates,,

1957.

of

ivir-iUf.

expansion

housing,
with the total approximating $46.5
billion, or about 5% above the

nominal

i ome.

;

below, that

ductioft-in 1957 is expected to-exceeld, that of 1956 by .about 7%.

lower

foy

private

new

1956

of

months

the

than

lines

to

in

are

„

sponding '1956

jewelry

jewelry and silverware, and
grade costume jewelry
probably will be
slightly; under
comparable sales of the first

substantially greater

a

diamond

New
qf the housing decline,s 19o6.
orders
for>:ciittirjg
private construction activity as a tyPes
'e
..approiawhole is expected to show
mate $440
only a
million, as

cts

3%

of

units

first half of 1957 will fall at least

cau-.

to

nd

■*

-

1957lx^^>v*/,

moderately,
with
employment continuing at record
levels and personal income reach¬
ing a new. high. «
-i?.':
v

i

be

compared

ery

ex-

plant ca¬
units,: as compared" with 98,000 ;
pacity'plus a continued high level
units for the comparable period in of
industrial 'activity," especially
1956:' First quarter 1957 will shovv,
in those 'industries
'making ex¬
the sharpest drop chiefly in the
tensive use of
chemicals,-Indicate
light and medium, weight cats-; a volume--of
chemicalMTianufacr
gories.
J
turers' sales of about $12.5 billion
;
\
v
Truck-trailer production in the in the first half of 1957.This

the

metal

the

ade¬

coming year in
major types of construction

most

Prospects for the

-:eel

c

of

crease over .1955 that is
expected
to continue through .th.e first- six'

those of 1955, the previous record
year.

Construction:

estimates follow:

Iron and Steel:

r

to

is

diffi¬

no

j
first
1956, .-and would
area.
In the jewelry
industry, for monthly ,average .approximating establish the
highest volume irk
example, it is expected that' the 6,000 units as compared with
6,-? tho history Of the industry for
any
total" dollar volOmer for the first 400 irr 1956.
;v~
:/•'**;n
semi-annuaL period.
;
C\. Ic I
six -months of 1957 may* be
"slight-, - Throughout the'autbrnotive' re-r* *
Rubbers The* rubber products
ly- down from the compafg bte pe- placement parts
'industry,signif iriod
in 1956.
However, ,in the cant capital expenditures are being industry is expected to have a
larger volume of business in the;
higher priced items such as,semi- made and

expansion programs being carried
out- by the industry.

Divisions of the

...

as

of1957

dollar, volume, of

capacity is in' prospect for* later
periods as the result of new major

'

Secretary Weeks said the survey
was conducted by the 25
Industry

The BDSA

pected

Optimism is tempered with

and

quate, and

II. B.

5,850,000

production for the

months

is

culty in steel- .procurement. Octo¬
ber
orders
for
freight cars in¬
to
6,532 from 3,949 tin
September. October deliveries of
freight cars numbered 5,666 cars,

the corresponding period in 1956.
Average monthly
production is
estimated to approximate U5,000

tion among the^ various industries
in
the
personal
durable
goods

precious

expected

capacity.
Surveys

to

least

and. the

lion

this

'

amounting

at

.

months

pected -to

the

and

1957,

six

1956. Total 1956 shipments are ex¬

Weeks

some

forms

of

-

those of the comparable period in

of
Sinclair

v.pon

half

six

in

maintained

there

«

3 957.

v«* reas

, .-

pounds. At -the rate the first half
shipments will be 8% higher than

the

months
In

-

annual rate of about 4.7 billion

an

sales

first

'■

1956 will

approximated

be

.

maintained

Shipments of aluminum mill products and ingot to
consuming industries afe expected
to reach. new record levels in the

gency,

ticip

fion

,

high level of sales in

Aluminum:

continu ed

.good

copper-base,

-

.:■/

•

of

construction, increasing; automobile requirements and new .uses of
.-.'v.; glass products indicate that the

approximate that for the

period of 1956.

period

have

Motor truck

should

provided

creased

automobiles.

the

first

same

will

com¬

for

'v-

eseen

international

an

the

1956

at

1957 may

tries,
barring an

e me r

of

1957,

flat

powder in the first "six-months of

u s

unfor

period

reason.-

'Production, of

major

in d

half

probably will operate

parable

ministration

first

level somewhat below

a

,

Services

1957

the

month

*

glass shortage.of 1955
and part of 1956 has been overcome by plant expansion and
im-.
ports. A continuing high level of

residential construction. Brass and
in

for

:

shipments

corresponding

1956.

%

foundries

and

least comparable with the volume

ment survey.

bronze

sales

is prevalent
that
sales for the
first six months of 1957 will_be at

basis of Commerce Depart¬

on

6,227,000

1956.

production and sales rates for first half of
no shortage and international emergency, is

1957, assuming

estimated

an

anticipated for the first six months
Of 1957. This estimate is based on
a total of 6,500,000 productipn for
broke records in 1956 and, despite the
year, with the first half prosome indications of possible deter-"
ducing 52%. By comparison, it is
rent factors in
1957, the opinion estimated
that
1.956
production

Commerce

January 3, 1957

A

pro¬

duction level above 6,000 cars per

lion

to

mark.

program

approach the $3
This

record
of

will

will

this

be

exceed

1956

bil¬

by

program.

construction

reflected

in

.an

increase of production in the tele¬
communication equipment manu-

Contimied

on

page

36

Volume

185

Number 5600

•.

..The Commercial and Financial Chronicle

.

(15)

the

Industri al Progress
Means Automation
«

By

MALCOLM P. FERGUSON*

President, Bendix Aviation Corporation

•'-'/' •

•

•

.

•

'

Bendix Corporation chief executive hails .automation

the J'

as

symbol for startling new living standards' improvement/and / as
a
positive challenge to our whole .economic system^ Mri^ r
Ferguson maintains. (1), shift among workers will be "very /
minor" compared to past labor displacement experience; (2) "

_

will create

it
-J

opportunities

new

should

not

to

offset

the

:i
"

Ihe

-

-

word

automation

'/'-/v.: '
-is

no

in

.

logical

sense;
readily
re¬
minds the engineer
so

the 7

of

,

■■■*■■

'

"feed

back"

-

principle

-

and

nisms tnat aut o

I.

Kijyi

ser vonie ona¬

•'*

.

automation

maucaliy

tomatic

and

at

2arge
tion

has

Automation, therefore, is not
thing but three or more separate things.
The three aspects of

automa¬

come

a

record,

to

information.

to/

public

engineering

store,
process, summarize and interpret

;

-

ma¬

chinery,
the

elec-

^tropic'devices in, administration

controlau¬

one

be¬

M. P. Ferguson

automation are symbolized by the
exciting but frequently three types of equipment: ' memisunderstood process of cnange
chanical
transfer
machines
and
in our way of life.
•
apparatus, feed-back controls, and
fool for

;

.

sym-

an

You'll

of

notice

this

right

off

discussion,
by giving

automation: it's really a

nition of

work

new

of

for

later

the

will

it

simply
a
continuation
technological trends or

and,

automalion

of

future

what

productivity

industrial progess.
A
on,^ I want to discuss

course,

little

probably

jf

and

mean

me

give

of different
tomauon

To

is

new

T~t "teu3min?y

tomation

automatic

of
and

on

au-

transfer

equipment for
from

pieces

the

opposite extreme, some

which

co n

some'/popular

nological innovation.

While

in

of

that is

word

new

ti mu a 1 improvement, even
dramntin

pffppt

nf

a

JrP^t

it tbe dramatic effect of a great
Evolutionary
The

%'

.

the

,

Not

industrial

through

automation

Revolutionary

progress

all-

two-centuries

past

"progressive"
*
*.

very

turing;

used

not'yet

controls

do

much

*

of

.

is

long

as

performs
tions is
this

judgments:
have enough inventory or, need more, where to order
Mparts and in what quantity, how
an

Gf

the

whether

as

a

football field and

mechanical opera^
extreme example.'But

an

prlse

functions

should

ma-

not

sur-

us.

•An

3rd

address

by

Mr.

international

Ferguson

Conference

ufacturers,

sponsored

Association

of

by

the

before

of




Man-

National

Manufacturers, New

York

be almost inconceiv-

person

t

necessary

.

this condition is encountered only.

you

in

an

is

needed

not

/

.

....

_T

...

.

^

New Opportunities

abundance.

of

economy

Advertising

very-

Some authorities believe thr.l
automation will have its mosh
striking effects, at least for tb?

much where total demand usually
schedule the machine
shop outstrips t,ptal supply.
leading that/you have, how to V With an
economy that is grow- 9far
the office
schedule the flow of materials to ing as a result of automation and
than,
J16
^ should t i
the line, how to schedule labor other causes, it may be anticipated -' poted. that automation in the
and sunervision . , . even how to that we shall be able to consume; fme does not mean .that we; shall
schedule shipments and how to
a much

to

ship

the

products

the

to

greater volume of

field.

tising

TT"

that tyith feedback, based on
customers' reactions.
That is
®l,lbmati(>n in th<^x laFge, as dg-

most

Thu

awarer^s^of

people

what

is

is

acceptance"

most

firm° 'will

of

act.

mo n

com

go

far

so

to

as

say

Gn

it

doing

for

collect and

thes'i

business

that

likely

store more

:

goals.

v

faster.

processing of informatiorj

Faster

absolutely essential to attain-.

ment of national
.

is

it

information, analyze it better and

Many

is

methods

,rior

/{hings

representatives Of manage-,

it

have profo,Jnd effects on alt
of economlc activity. It car.

jll

t

/0/tribute

to leveling out

fluctuations

which

business
to

are,

som ?

Ralph J. Cordiner, President of' extent, a by-product of uncertaL i
hear-o0r incomplete information,
ings held by the American Con-,
In the facto„y automation win
gress to explore automation and affect not
General Electric, testified at

technological

constant

a

important

of the

one

ment

rPtWnlfhS
as

./is to collect, store, interpret and
repoi^ on information. With sii-

among

Just adding «ntro*.
described

automation

automation

Automation in the small is al-

rShinkiit

of

"Wholehearted

js certainly possible in prin-

,

,u

,

think about it.

clP^e-

tion in the -large is not through

„

factors that

vi

determine the speed and di-

rection

expert, and he claims

^ one

,,

.

will

adver-v^0 ^e same things with machms^>
serv-"t}lat ar9, no}v d9ne ^1
'
labor. The function of the offic ?

other marketing

and

jces

^

tQ

a

that

changes
^

the end functions of

that

the

on^

on

direct operation;,

the-material

processed

being

Um/ei'^tes WlIlreqJUlreaJneStl"
more goods and serv-

new

model

be

can

the

of

produced

methods.

conwoi oi au-

",e

often

discussions

of

to

auto-

A?9 orten discussions oi auto

of

second, including
such

as

circuits,

a

r.ew

transistors

have

millionth of

a

components
and

greatly

printed

increased

progress

m

automation

k

to process

controi and to auassembly.

tomated

seems

the only available

be

to

us

lution to this

....

,

.

.

,

.

so-/

problem/Mr. Cordi-

.

7,

•

"

..

,

_•

.

,

v

.

,

Gedrge Meany, President of the
recently expressed an
attitude
very
close to
"whole
hearted acceptance" ...of automation. ,He/ was quoted as saying,

AFL-CIO,
'

.

.in part, that "automation,
with
atomic power, will
sees

fear

to

reason

no

factories will

when
an

automatic

coupled
change

and "labor

lives of all of uV

the

run

basis,

time
virtually

the

with

ma-

M°st. non - manufacturing indus^
Anes will not be radically-affectec ^
Agriculture, mining and yehiculatransportation-do
selv,e$v easily to -fully,, automatic

operation X.or automation in th^

Jfrge), though automated device*
^ a very real future, .especiaUy
^ transportation

Here we hav >
the sens i

a/ase of automating an.

ne^.

But oc'® of-handling, but not the fu y
will automatic process,
still be plenty of work to be done - There
are ample grounds fcr:
by people and, "if it becomes pos- assurance that automation is no ;
sible to put into effect a shorter a bolt of lightning due to strik e
work week to maintain full em- us at some date in the near fu~
operating machines."
on

to say that there

,

/:

U1

.

A more difficult problem is the
Control systems that have a large amount of capital required
"sensing unit" for monitoring a for this new equipment. The cenprocess and an "activation unit" tral importance of an adequate
for controlling the process or supply of capital was^underscored
making necessary corrections, are -m a. recent speech by The Ausn°f new in principle. But devel- tnan finance minister. As reportopments
in
electronics, with
a e</ in the New York "Times," he
response

of

1.n<^.91s^r1ies m ^ J?
nation is likely to make themosv
mation give undue, emphasis to
ner said, particularly in situations
pr°gress are (whh some excep ,
SOcioIoeical
nroblems
it
is
where
we
have
exhausted
the tions) those which already hav supposeTlo^dngknown
economic possibilities in reached an advanced state of tech in the first, place, automation
the more familiar field of simple 9°^°^*
In some industries th?i
can occur only as fast as man can mechanization./improvement o manual methoc,:;
may be just as fruitful a field foi/
dream and devise the process and
/' Labor's* Reservation Attitude
industrial progress as automation.
thc^nrvachineiy, and instrument in—
Too.

Somatic machinery.

time

Faster

field

newer

and
the

machinery

productive

more

product,

automati-

cajiv

We have bad automatic machin--r

operated., frs

540

a

-

,

.

chines

continuing extension of

chine

the

individually

th*>

,

he "went
eacn

•

of this century.
This has been true of all previot >
history. There was a gradual immation must include some discus-. provement even in
the earliest
to make sure all of the controls
sion pf the possibility of finding days of the new technology. Th?
and instruments are functioning. markets for the output of auto- overcrowding which to^k plao
correctly. This.,is automation but mated industries.
was due to rapid increase in pop automation in the small.
,i
; "/•'•/
ulation—itself a sign of improv /
Large Markets
:
But. in^a fabricating industry '
ing welfare.
Yet the myth that
(fabricating metals, or textiles, or
Marketing, and in particular ad- the first effect of the industrial
plastics) an automatic set-up vertising, can be viewed as the' revolution was to spread human
might mean this; You take all of economic function of preventing. misery still has a profound influ the sales figures you get from the the market from being cluttered ence on attitudes toward techfield and you make automatically
by unbought goods. Incidentally, nological advancement.
"

on

$2 million machine tool that

to

as

able for

using the ."feed-back".
Examination of the determining
principle; but periodic analyses
factors in the progress of autostill may be made by technicians

yiously been performed as a

tools

,

early

of machine production wr. f

low

so

specialized equipment.

processing,

/-.i.The firsf is th^ installation of- ery replacing hand labor, increas- .Labor* and < Capital Requirements:
new
and' more complicated ma- ^nglv, for centuries: Now we have
For/example, automation will
chine-tools which perform-as one automatic controls more and more require substantially more output

The

pro-

ductjon in the late 4 8th and early

skills

new

maintenance technicians

and

ture

thef for

tors affecting the change-over.

rather than revolutionary.^

mahuxac-

'

problem of

have heard^—whether
wrong—about the drigi -

they
or

introduction of .rhachine

nai

in

has been a process of learning to
with very'-mueh consistency, the produce
more and better , goods dus'tries can design and produce
more serious students of the 'sub-:
with fewer people. Automation the
necessary
equipment. ' But
ippf havp manaapd tf> reduce it to
carries that forward perhaps more while these industries may expand
Jove?kbo™^thi^e dffferent types swiftly. /But it is evolutionary very rapidly, there are other fac3

what

right

,

a

who

those

mated 40%

new departure,

/

Change

of

-have

we

ic

have

we

though the automatic feature gives
s

indis-

apply

the^

Types

expression for what

a

£ac^nes Now th^ furthers ep

criminately to all forms of tech-

Three

merely

of having ever more, complex
Jobs performed automatically is
still in the historial pattern, of

wnlprs use aiitomation as a catchwriteis ikp automation as a eaten

word

automation

'

.

adopt thhr
also re-" attitude-of / "acceptance with res more people
ervations" may be thinking aboii

traditional skilled

the

"

of

may/

occupations. y In
other
automation may not only

of

some

words,

movtagjvrork, beta

automation
as
a
completely new approach not only to
industrial processes but to probiems of human organization in

Finally,

between

destroyed.

the, but
also, -a quantitative increase ; i9th centuries. Actual l y
small and automation in the large.
in certain existing skills, such as standard
of living in the
He
cites/the situation in the those of machine tool manufac-

Soml plople
as

'

but, perhaps' to an even greate r
extent> such auxiliary functions a',
Product and ./
either by better methods of doing ti0ning of whethercontinual ques- ices by 1965 though it will have
those functions
inSpection
assembly, materials!
a job
with the old equipment or
only .14%
more
people in the handlin
,
•
.
can be performed better or equalpackaging and so forti:i„
r
force
Industry must
be Automation
by' usmg new andI more efficient ]y well by a slight variation in the
app,ied to inspection
encouraged, he said, to invest in 0
measurement may be the real
pro<juct; or perhaps a total change

regard

general.

differing

the; use;
machines be made: greater productivity has'

the next.
At

departure

.,

machine tool to

one

past

should not be content to reSard the two terms as synonymous.
/
This observation certainly can

The

industries,
simply

means

of'

whether

we

whose interest

metal-fabricating

in

re-

as

Most

rpne authoHty/ rnakesj a distinc-; present
tion

nature from the devel-

automation

upgraded

automation

But

manual

i

previously called mechanization, ready an accomplished fact in
I happen to feel that while there many industries. The experts tell
is some ground for this feeling, ^us that the way to get to automa-

interpretations of auare current today,

writers

new

regard

that

some

a

verv

0pments of thepast

to

three examples

you

is

in its

business and laoor.
Let

•

.

im the title electronic computers.
Then you want new instructions
I ve startedNow/there has been much dis-' ^95^ Ihe field, bas&d upon cusyou a deficussion on whether automation is-v-tojoer. --reactio/^ You want to do

that

skills

quired...

days

us-

third type of change often
under^theuse of
heading of
is
the

■

small

chemical industry. There, au.tomat-

Another type of innovation

discussed

-

their

and

automation

many

Small/aiid Large Automation

//,'

M-. specifications.

-

^have

-

'

called

-

the

,

already

ISf. a machine—or, indeed, a whole
P|lj ? factory—is doing and act upon
gAjg.. those observations in automativ?
the operation so
1jp§
: will not vary from pre-set

.

or.through

government

.

back" devices, or "servomechanisms"/that Observe the work that

automation,

techno¬

a

through

collective bargaining—is necessary

<•

stranger, I'm sure,, But it is still, ually described as "automation"
nevV enough to require more
posi-. is the use of. automatic "feedtive definition. While

therefore,

tgxes,

automation.

.

.v

-

,

—

Heavy
stall

could

tools themselves.

savings from

improvements; and (4) large and small industries.large capital
requirements necessitate tax reduction,, large markets,J and

W

way."

Another
key consideration in to protect people against the al—
great,factors in the progress toward automation is the leged "bad side effects" of auto future of automation — so rpuch ; tremendous demand it creates for mation.
,
;
that we rriay see the use of a new
skilled
manpower.
The new r
There is real danger that the£T>
"word for automation
why not. equipment cannot be designed or fears about
objectionable corollary
\ eleCtromation?
\ built, until i there aresqff.icijent; effects may seriously slow. dowh
/ Automation
can
be applied to trained, p e o p l e to
accomplish/ automation by imposing an add| ; multi-purpose
apparatus — even T this/first step—and rio business /tional cost upon production. It
■for Relatively small runs—as well' is' " going to make an expensive' such burdens
offset the • saving >
as" the' single-purpose
machinery ? change in equipment or methods-from increased efficiency, the in you find in a big( production line-- without :first
making sure/ that rcefitiye/ .Tor / /technological / im for automobile engine blocks. We - the trained manpower is available
provements may be impaired

of

-one

skilled manpower.'
-

versatility

ing calculations and in producing. quire the training of

increased efficiency^ -or impair the incentive for technological

v' i

and

systems.- It is-already
apparent that electronics will be

quantity
/production of .parts—in engineer-

for^new business, the older

burdens

create

dependability

': these

applications ; in

worker; business cycle control,' and military, strength; (3)
organized labor's unemployment' fears seem almost, absurd
and

of

—

.

*

i

•.

;

13

said in part:

this

is produced
is not consumed. There is no other
of

what

let

us

opportunity

burdens

The attitude of "acceptance

reservations"
among

""Fundamentally capital is formed
when' part

promptly accept
to lighten the
of the American people."

ployment,

that

more

labor leaders.

automation is

a

with

common

They agree
good devel-

but some of them insist
planned intervention—either

opment,
that

is

ture.- Change there will be, bu. J
at a rate that will allow us time
for social and individual adapta*

ti°n'
Change is not unprecedented i
the modern world.
modern

society

•.

Paradoxically,
remain wha;

can
,

^

Continued, on page

o ^

The Commercial and Financial Chronicle

Thursday, January 3, 1957

...

Suppliers to various indus¬
as National Supply

tries such

THE JARKET... AND YOU
Stocks
start fdr

after
of

the

in

bull

chagrin

mostly because there

was

apparent flood of reinvest¬

ment demand

the immedi¬

on

ate horizon.

A

Caution

;

rather

would

new

year

been evident among such in¬
vestors
for
sometime.
Fur¬

thermore, there

was

need

no

tax-wise to wait for the actual
turn of the year

purchases

because

for

any

automatically

would have been
actions

1957

several

trans¬

sessions

prior to the 1957 debut.
*

❖

*

showing in 1956
of the various averages—in¬
dustrials modestly higher and
rails definitely in minus ter¬
ritory—renewed the inevita¬
over! whether

bull

swing

even

transcended

rally

the

wag/finished.

whether

It

speculation

the

year-end

already history.

was

*

>:•-

year,

c<!tisequently, wera~definitely
guarded. The more widely
held view
this

thatf like 1956,

was

would

year

relatively
far

be

one

of

price

narrow

the averages
concerned, and a mediur'n

moves, as
are

|

as

figure would
about 8%

be

*

if

Steel,

the

of

which

year, up from
$42 low to better than $182 at

year7end, and showing offi¬
cially price improvement on
the year of $13^37 per share,
was
able to nudge its peak
higher to make an auspicious
start this year. But steels as a
whole had pretty much run
of followers.

tions

at

capacity already,
little

is

there

With opera¬

good

chief

»!•

*

Enthusiasm

.

also

was

by the

somewhat

-

decision

facilities

side. That

market

is

the first

is that

it

ovet,

time

in

Sjt

$

be

one

ground to a halt without
widespread speculative e xin the final

cesses

an

phase and

ultimate explosion. In fact,
low for 1956 which was

the

posted

in

the

withstood half

first

month

dozen

a

seem¬

ingly determined assaults
each

time

enough

and

bargain

not cut¬

*

selling

in

were

is

occasional

despite

investors.

would

are

would
put
that
much
more
weight on the
stocks since the market lately
hasn't taken kindly to dilu¬
tion through new flotations.

attractive

history that

deny

financing,

was

if this bull

to

profits are bound to
The alternative, new

negative

the

on.

the

international
still

rather

as

proup

not

a

for

un¬

patient

The Suez, situationr

of the keys-, in the oil

one

picture but the fact seems.to;
be that it will be months be-,

nlus of domestic crude is be¬

ing

whittled

increased

assured,
the

and

away

production

important crude

pro-.,

Amerada.

as

Foods Favored

divergences in
is

accepted.

And

hunting around
aimed

at

appeal

up

staged

a

be

in

wide

action

group

of the facts

one

year

will

universally
of

some

was

groups

definitely

with

to here.

the

little

One that

good comeback last

was

the

coal

industry

which, since the future
discounted

to

any

is not

large de¬

in prices of the various
issues, was considered as one
gree

with
new

a

bright potential for the

year.




producers in these

lines have

*

good

their

were

Issues th<R have been well

they offer
attractive
yields of 6%. or
better are still bobbing up
regularly in lists of favored,
S.

Plywood, in an
industry
that has had its
problems, backed down to the

regard

defensive

issue with
mend

it

a

as

bit

because

more

to

of

One

nature.

com¬

likely to

one

re¬

available at

6%

yield,

better than

a

illustration.
Radiator,
selling

American

recently at 10 points under its
27 peak, was at a better-than8%

and Electric Auto

yield

Lite,
its

a

53

peak,

in the 6%

was

Changing Situation
also

issues.

which showed

ings,

Can,

dip in

a

earn¬

favored since prices

was

increased

were

sev¬

American

months

two

bound to leave
shortly. JohnsManville, in the quality end
ago and are
their
effect

of

the

sales

list,

and

able

was

lift

to

although
for the
residential building
industry it was far from a
banner year. Sterling Drug,
which recently increased its
dividend
and
Kroger,
en¬
gaged at the moment in drop¬
ping marginal grocery stores
and expanding its larger store,
earnings

operations,

also

were

tioned with fair

men¬

of

cause

that

large backlogs
high-level opera¬

for

tions

months

Something of

to

come.

in
this division is General Dy¬
namics. which, apart from its
aircraft
line, is deeply in¬

hedge

a

even

the

in

fields

sion,

not

fidelity
its

to

Stromberg
Sales

sion.

than

more

nine

the

issue

is

a

of

return

to

the

old

ous

prevailed in 4953.

to

equalling

the

for' all
even

jumped,

year

third,

a

three-

entire

of

1955.

better, jump¬

over

the previ¬

year.

[The
article

time

not

coincide

as

expressed

derived

is

10%

from

Electric

ice.

revenues

35%

are

residential

and rural, 25%
merqial and 28% industrial,

Middle

South's

gas

serv-

share

corn-

earnings

have shown moderate growth since
the stock was placed in the hands

50

of the public in 1950. Consolidated

Farming is

,

basic

a

share

area

industry in
the Middle South
territory, with
larger farms replacing small ones.

earnings in that
and

dropped

following

declined

years

in

the

By 1953 they had

year.

advanced to $2.06 but in

two

were

year

cent

1

to

the next

for

$1.94

1955.

Income

Dividend payments have increased each year, from the $1.10

nearly

paid in 1950 to the current rate of

in

the

of

use

farm

ma¬

chinery, irrigation, soil conserva¬
tion, and fertilizer and chemicals.
Middle

fiting

Utilities

South

by

the

rapid

is

bene-

development

of the billion-dollar petroleum in¬

dustry in its

In the calendar

area.

year

1956

an

lion

was

spent

estimated $625

in

the

5,626

mil¬
for

area

oil, gas
and condensate wells, with
42,000
workers
employed.
In
the
12
months
period ended last July,
some

million
and

area

in

new

.petrochemi-

new

refining

facilities

announced.

were

12%

of

extraction

U.

S.

workers

in

the

At present

refinery

and

employed

are

in

Middle South, with a $300 million payroll.
Eighty-five percent
of chemicals derived

natural

the

gas

Gulf

are

from oil and

produced

now

Coast

in

Refining

area.

capacity in the Middle South has
increased ll9% since 1946, over
double
the average increase lor
the U. S
In

the

Tidelands

Coast,

River

has

prolific

off

area

deposited

of

the

the

Mississippi
thick

Miocene

layers

sands

at

depths practical for drilling. The
U. S. Geological Survey estimates
of oil and gas

reserves

Tidelands

to

equal

of U. S. onshore

in the Gulf

about

third

a

Seventy

reserves.

percent of the 900 wells drilled in
the

Louisiana

Jan.

1,1956,

were

new

wells

were

Tidelands

in

scheduled

to
for,

three-quarters
previous year,

the

Louisiana

up

productive; 630

production,
than

The

Tidelands

are

al-

ready

producing 100,000 barrels
crude oil
daily and by 1960

of

arq expected to produce
barrels
of
oil
and
two

oil,

billion

growth of the
refining industries

and

in

Louisiana

of

the Middle

an$ adjacent parts
South, seems likely
to
insure continued
growth and
prosperity for the area. The paper
,

industry,
ago,

the

latest

in¬

from $1.50 to $1.60, did not

until the payment date Jan.

occur

2, 1957).
Recent trends in share earnings
have been affected rather sharply

by changes in rates for

of the

one

subsidiaries, Arkansas Power &
Light.
The latter in July, 1954
placed in effect a $3.9 million rate
increase.
the

Pending approval from

state

later

commission,

collected

included

ings.

in

this

under

Middle

was

bond

South's

and
earn-

Despite the fact that the
felt that it was entitled

company

this

to

increase

based

earlier

on

regulatory

policies of the cornmission, the latter denied the reauest

and

state

on

appeal.

by

the

The

,

in-

amounted to about 28 cents

crease
a

sustained

was

courts

share

annum

per

Middle

on

South's stock, and when

the

case

finally disposed
of,
share
earnings dropped from $2.26. for

was

the 12 months ended May 31, 1956,
to $1.98
for the period
ending

in

having
the

gained

South

a

foot¬

a

few

years

is also growing rapidly. Over

million

trees

planted in
Mississippi by pulp and paper interests in the past year, and about
60%

of

over

the

the

were

industry

ftext

three

However,
point.
The
somewhat

expansion

years

is

the

granting

little

a

it

had

low-

relented

two

aggregating

or

amount

marked

commission
by

increases

cents,

this

rate

about
half

over

denied

the

16
the

com¬

Part of this became effec¬

pany.

tive in July

and the remainder in

December. Thus earnings for the
calendar year 1956 are expected

to

to $2.17.

recover

1957

the

In

rate

increases

will

estimated

12-cents

or

year

add

an

more

(a

third rate case will be decided -in
a few months) and the company
expects

to

add

another

21

cents

through gains in operations, makine

total of $2.50.

a

These estimates

shares

7.598,000
the

eompanv

about
and

should

may

1957

be

the

favorable,

are

decide

earnings

calculated

on

outstanding.

shares late

500.000

if

based

are

now

If market conditions

tremendous

gas

hold

(technically

crease,

400,000

cubic feet of gas a day.
This

$1.60

June 30.

Louisiana

1957,
share

prn*

on

sell

to
in

the

num-

bef of shares at the year-end this
»T'*ht reduce the estimate to about
$2.35.

However,

likely that the

it

new

appears

more

stock will not

be2f?,Yed
eafly in 19j8oni,
At the recen pnee aro'md 20U,
tb_p1 stock vields ahout 5%% and

about 14 times estimated
,sw! earnings. and 12 times the
earnings,
1957
projected figure.

ex¬

pected to be in the South: Another

industry
rapidly
lion
was

hr

which s. is > expanding,
is cement—over $35 mil-

• new

.production

announced

or

~*GarrolLAdcIs to Staff
(Special to The Financial Chronicle)

facilities

put under

DENVER,

con-

Colo.

—

Donald

D.

year,/almostPullen has joined the staff of Cardoubling production capacity. "■ \ i~oll & Co., Denver Club Building.
struction

in

the past'

A;; ,new
$52 .million
Kaiser
alumina plant will be built on the

*.

Weeklev Forms Co.

Mississippi River between Baton
and
New Orleans.
This

this

coming

necessarily

at

any

basin

with

of

the

WASHINGTON, D. C.

of

river

is

be-

F.

—

Weekley is engaging in

Henry
a

sebu-

many

They

those
are

those of the author

in

84%

sales,

$1.82

100-mile -stretch

views
do

about

power

business and 6% from transit

to

some

which

from

Rouge

"Chronicle."

rate that

first

for

better dividend treatment and

ultimate

the

ing half again

candidate

sys-

service

The population of the
is estimated at 3.9 million.

19

through
Carlson divi¬
General
Dy¬

months

shipments

up,

mis¬

propul¬
mention
high

equipment

Profit did

perk

of

siles and nuclear ship

chores

to

rendered

more

regularity.

their

assure

decreed. Now with the
major

starting

is

1956

Aircrafts Selectively Favored

in

largely completed and

electric

of

New-

annual

Utilities'

cinity.

some

managed to pinpoint

eral

which

was

of

The

South

communities in Louisiana and
bug
service in New Orleans and vi-

cal

Various changing situations

expanding and
modernizing busily, during
trim

shares

Service.

be

will

approximate $159 million

revenues

1,700 communities, including
Orleans,
Jackson,
Vicks-

New

of points under, drilling

score

quarters of last

dividend

Public

furnishes

over

one

as

has

been

common

gains

namics1 for

profits

the

Orleans
tem

Middle

Light and MissPower & Light, and 95.27%

issippi
of

these

of

in the territory served by Louisiana Power &
Light Company.

&

earlier in

selling above 50
the bull swing and

bound is United Biscuit which

a

Power

ana

A number

area.

Arkansas Power & Light, Louisi-

low 30s after

was

Utilities, Inc.

an

per
farm
has
gained
40%
since
1950,
over
double the average U. S.
increase,
and
there
have
been
marked

volved

also held

is

and

if

deflated to where

U.

Utilities

integrated holding company owning all • the common < stocks of

service

issues.

South

burg, Little Rock and Pine Bluff,
to
large rural areas.
Gas

far.

so

❖

,

Food shares

there

basic

ous

seems

benefiting mostly

ducers such

the floor to hold.

Expected Divergence

be

will

customers

"Aircrafts, while not overly
fore any normal oil traffic
through the canal can be re¬ vigorous marketwise, were
still favored selectively be¬
sumed. Meanwhile, the sur-

huntmg moved in to enable

That

their

operating at peak rates and
they, too, will benefit. More¬
over, they have not shared in
the popularity that the vari¬

gov¬

expansion plans. Un¬
normal depreciation,
if

Oils,

to here. The theory is.

up

steels

for. the

dustry

back,

the

been

$280

rapid amortization for the in¬

suffer.

has

*

chilled

ernment's

new

case

that

than

bracket.

*

comfort,

to

news

discount.

widely regarded
The

was

truly spectacular

group,

industrial average.
*

if

Middle South
Middle

ture, were getting a bit more
attention

Utility Securities
By OWEN ELY

burgh Metallurgical and Va¬
nadium Corp. in the steel pic¬

were

performers last

somewhere

either way for the

■

al¬

advan¬

various

if

Lukens
one

the
new

cite

to

der

-jf.

Forecasts for the

more

group,

.

tages to back their favoritism.

out

The mixed

ble debate

the

in

the

of

one

was

able

bit

a

illogical, actually. Caution has

over

tion

bring in sizable insti¬
was

vir¬

with

business

better

tually all of the bad news now
behind. Pittsburgh Consolida¬

though the followers of such
as Pittston, Island Creek Coal

widespread hope

tutional investment

prospects

to

L and Eastern Gas & Fuel

.

that the start of the

demand is grow¬

overseas

favored

New Year Starts With
.

mombnt-,

the

at

ing. It adds up
of

as

competing fuels as

possible

and

market

The

1949.

is

as one

undistinguished

mqre

much from

this week

1956

up

Coal has about suffered

dismal

a

year

since the

started

no

new

a

winding

years

was

got off to

,

STREETE

WALLACE

By

Public

Halliburton
Oil
Well
Cementing in the oil industry,
Climax
Molybdenum, Pitts¬

and

presented

only.]

of

known

as

America

the

chemical

because

of

the

new chemical plants which
recently have been announced or

are

under

construction

in

this

rities business from offices at 3220
Connecticut Avenue, N.
the

firm

name

Investment

of

W. under

Mutual

Associates.

'Funds

Number 5600

185

Volume

.

.

logical in its effect, is entirely ob¬
jective in character/ concerning

' W

~

not

Bank and Insurance Stocks
By ARTHUR B. WALLACE i

Week

This

—

Despite the ftimds-Fhat the Fed¬

into the b&ftking

eral Reserve put

system to tide business over the
holiday season, indications point
to

further

a

and

ventories
in

and

for

part

sufficient

funds

give

to

country

the

money" during

' pocket

likeli¬

But there seems to be no

further rise in the re¬

a

discount rate can be avoided soon,

bills
in

commanding
of

excess

have

interest

all

rise in the

The

3%.

it comes about,

tendency

a

to

^increase
prime

the

from

rates

slightly

rate

a

rediscount rate, if
will

91-day

Government's

the

with

well

tions.

holds
supply of loanable funds

Washington

One

the

that

become

will

source

that

tight

so

obligated to step in and ease

the

pressure.

there', is

First,

quite
with

in

been

a

steady
decline pricewise,
yields at such levels as bond
have -not

buyers

in

seen

many
to be

has

Consideration

moons.

given, so far as the bond market
is
concerned,
to
bonds
in

portfolios. The large metro¬

bank

short

banks that have to be in
maturities because, after all,

they

are

politan

central

in

reserve or
cities qnd hence are sub-

reserve

jet to withdrawals by the

banks
in

The latter concentrate

are.

for

bonds

term

longer

the

higher yields that the longs nor¬

offer.
The big banks

mally

ing

at

a

investing in other

finally,

an,

in

capital

the bank."

in

Then

This

volume.

loan

construction

home
this

from

cry

ttue complaiait is not so
interest charged

case,

much the rate of
as

a

goodly proportion of housing

customers

are

not

to pay¬

averse

ing the higher
rates.
The big
complaint is more over the avail¬
ability of mortgage money; and,
while we are in a sellers' market

certainly the lender who has cred¬
it for sale will look for the better

deals, for example, those in which
-substantial equity is present to

a

back
this

up

state

the mortgage debt. But
of affairs can well put

damper on house ""construction
lor a while and so tend somewhat
a

slow

to

the

and

loans

watch¬

between

relationship

the

is

bank con¬

discounts in

dition statements, on the one
and

At

assets

liquid

the

on

hand,

and

of

in

case

loan

a

policy
The

point

which

on

surrender

value

of

the

pol¬

other words,
his
own
but the loan was called
(probably with others) to make
in

money;

loans

For

before

weeks

Federal

the

mas

proportion

•

some

what

the

reduce

to

or

loans.

of

commercial

for

available

funds

eased' th£

Christ¬

Reserve

some¬

stringency

money

by buying government obligations,
tn

increasing
the
supply
of
But as already pointed out,

us

funds.

this

only

was

holiday
mains

be

what the

seen

volume will be.

of loan

should

we

past,

now

season

to

as

it

re¬

course

Normally

be

approaching the
which*
loan
volume

in

shrinks

ex¬

help finance the holi¬
of business.
With the

to

needs

day

temporary

a

result of

a

loans being

off.
But for several years
cycle has not behaved accord¬

paid

The

of

announcements

current

will

nor

heavy

the

gov¬

spending that is planned.

ernment

fore

Kidder, Peabody & Co., 17 Wall

City, members

New York

Street,
on

Exchange,

will admit William N.

10

Jan.

Spencer and
partnership.
Mr; Spencer will make his head¬
quarters
at
the
firm's
Boston
office, 75 Federal Street, and Mr.
Voysey in the Chicago office, 33
Voysey

E.

character¬

istic of

to

periods

rising

income
Leopold

Since

Kohr

t

real

levels.

in

these

depend

u rn

rising production, demand in¬
flations have a
self
cheeking
mechanism.
As
higher incomes
on

-

drive

price levels, higher

up

duction

furnishes

creases

which

the

keep

pro¬

supply in¬
rising price

levels from running away.
Most
contemporary inflations belong to
the

category of demand inflations.

Germain

St.

J.

(Special to The Financial Chronicle)

t

PEORIA, 111.—James S. St. Ger¬
main
has
joined
the
.staff
of
Madison.

of INDIA,

and

Bankers

INSURANCE

to

the

LIMITED
Government

in

Colony and Uganda
Office:
26
Bishopsgate,

Kenya
Head

'

BANK

STOCKS

West

London, E. C. 2.
(London)
Branchi

End

13, St. James's Square, S. W. 1.
Branches in India, Pakistan, Geylon,

Laird, Bissell & Meeds
Members
Members

New

York

American

ISO BROADWAY,

Telephone:
Beil

(L.

A.

Stock
Stock

NEW

Exchange
Exchange

YORK 5, N. Y.

BArciay

<-:CVOO

Matter-




Uganda.

Tanganyika,

Protectorate.

£3,104,687

Fund__

Reserve

Bank

£4,562,500
£2,851,562

Capital
Capital

Paid-Up

conducts

and

every

description of

exchange

business.

Trusteeships wd Ex ecu tor ships
-

»-

Kenya,

Zanzibar, and Somali-

land

banking

Trading Dept.)

Specialists in Bcrtk Stocks

Aden.

Authorized

The

Teletype—XT-1-1248-49

GRjbs,

Burma,

-

a)sc

a'JtdertateeiL

velocity
least

changes,

admittedly the
significance. Moreover, in

in

are

where

the bulk

transacted

credit;

by

econ¬

business

of

bank

of

means

velocity changes have a
aggregate effect also

diminished
this

on

account.

volatile element

most

the

For

susceptible to

ve¬

changes is not bank credit
but liquid cash. Yet, even where
cash transactions represent only a
minor proportion of total trans¬

locity

actions,
significant
velocity
changes might constitute a major
problem

by threatening to mag¬
nify inflationary pressures result¬
ing from the two other causes to a
point where they can no longer
This

controlled.

be

is

the

reason

runaway

velocity

a

inflation.

historically best

the

in

crease

of

supply

currency.

As

long as currency took the form
of gold and silver coins, the price
level would rise \yhenever there

But

velocity becomes

as

important

ally the less

gener-r

as

in¬

an

flationary force the lower the per¬

cash

of

centage

the

becomes

more

transactions, it
important the

significant increase in the
supply of precious metals. When

higher this percentage. This means
that as a problem of significance
it
is
nowadays mainly confined

note

to economies which

was

a

currency

rose

as

of

Famous inflations

of bank credit.

of

this

called
lor

category,
currency

which may be
inflations, were,

the inflations Which

instance,

followed

introduced, it
dverexpansion

was

result

a

Death

Black

the

century Europe, when

13th

in

an oversup-

ply of currency resulted from the
loss of

practically half of its pop¬
ulation, or the discovery of the
new
world, when an oversupply
by the influx

caused

was

the ^supply

Though

of

to tee the princi¬

ceased

of inflationary pressure

cause

when

of new

monetary controls became
possible and effective' as a

both
result

of large

scale use of credit

quite a
few specialists still think of in¬
flation as caused mainly by ex¬
the

currency,

and

public

cessive supply of currency.

continued

the

Hence'

emphasis of mone¬

tary control measures even*in the
case of deiffand inflations.

Controlled By

Velocity Is Not

Federal Reserve

-

third

velocity
there

cause

is

pressure

of

may

inflationary

of

the
result,

in

increase

an

As a
thing as a
This represents

money.

be

such

velocity inflation.

tive,

tive in nature. Whenever currency

changes hands faster, the
other
same

things

had increased.

will

But

rise.

rise is here due to a
factor
rather

on

part

The price

because

preference of trans¬
considerable amount of

a

their
other

'hand,

of the

public

quantity

of

resources

available

to

to

conventional controls regulat¬

ing

currency

cash.

in

business

this

the

On

not

does

mean

underdevel¬
oped countries, increased velocity
is the principal cause exerting in¬
flationary pressure. It merely in¬
the

in

that,

case

than

critical

of

role there is more

dicates that its

it

could

veloped economies.
in

also

rising

with

along

be

in

de¬

For the very

of development produces
underdeveloped countries,

pro'cess

the

incomes,

typical characteristic not so much
of a velocity as of a demand infla¬
tion.
The

thing

their

supply such as are

the

if

has

currency

extent that

an

money

would

try to get
faster than

external

of notes would be

pearance

ap¬

more

little

is,

being done about eJirmnatlDg this
component

unnecessary

tionary .pressure. For

infla¬

of

banks,

even

instead of withdrawing badly used
and
abused - bills,
continue
to
channel

them

until

circula¬

into

back

the

dollar's

delicate

has faded >into dirty brown,
paper has come to re¬
unwashed rags. The only-

green

'the

and

semble

places where
the

form

of

change
Sh'iny

paradoxically,
hotels.

bills

great

the

These

given

is

new

in

are,

tourist

the very places

are

where'fastdr than necessary spend¬

ing would do
bad

no harm, and. where
derived from outside

bills,

earnings, would add not to

mone¬

tary velocity but to domestic

in¬

come.

This should

not be construed

meaning that the
of

as

overall picture

inflationary

Rico

pressure in Puerto
other underdeveloped re¬

or

gions is dangerous. Where there is

development, the upward pressure
on
price levels is not only un¬
avoidable but a symptom of ex¬
pansion.

should

Nor

that the acceleration

rent.

turn

indicate

it

given to de¬

by velocity threat¬

pressure

to

ens

trehd

a

into

tor¬

a

What it does suggest is that

part of the
like

part

of

into which

with

inflationary pressure,
the foam in a mug
has

beer

been

poured

too

great a velocity, reflects
not the high level of ferment but
the

reduced

only question is, can anvdone about it?
Can

could

level

of

substance

in

people.

is

not

whose

value

the

of

such

in

decorative

to he

seems

it

splendid

opia

other

that

"All

monetary

reasonable

and

apoearance

contributing its share

keeping

within

replace

reach

the

velocity

limits

regions.

needed

is

that

before

notes

point

Ethi¬

in

African

seems

banks

they

whk-h

at

their

velocity is increased by the sheer
misery of their looks.
The extent to which the control

'be

in

this,

to revert to gold
of

shape and durability as the Aus¬
trian
Maria
Theresien
Thaler,

■psychological determinants of the
rate of velocity, two can not be
controlled,! One is a general loss
usually results from loss
confidence in the authority of

the

by

away

accomplish

To

necessary

silver- coins

or

be

confidence

sponged

it would incite not only the spend¬

of

of

be

ing but also the holding instinct

velocity be controlled;? Consider¬
ing its strictly psychological ori¬
gin, it woul,cL$eem that the answer
js: No. And yet, the problem nermits solution.
True, of the three

velocity might diminish

tionary

infla¬

in underdevel¬
oped countries depends on the ex¬

tent

pressures

which

to

increased

these

bv

difficult

too

pressures

This

it.

should

discover.

to

are

not
The

of this article is however
not to suggest surveys in this di¬

purpose

rection.

is

here

For

one

case

money as

where

of

of guiding data.
The .purnose is to draw' attention
to a neglected aspect of inflation

The other is a gen¬
hope of survival

government.
eral

in

loss

the

incidents

usually results from

as

such

both

But

Athens.

minor

technically

of

since

occur

they

plague

famous

the

as

ancient

of
are

importance

only

it

and

is

different

principal

or

slower

individuals
tions
For'

nificance

with

fast¬

spending in normal

under

normal

condi¬

gother things'being equal).
this element though psycho¬

light

of

in

the

Money,

has

embodied

Theory

of

credited
its

own.

with

reflected
it does

on

the
one.

sig¬
com¬

cur¬

the price level,

moon,

is

like the

largely

But here and

a

there,

produce its own responses.

And where it does,
of its role may

only

a

True,

with the demand and

influence

of

are

need

rarely been

rency

element

influencing the psychology of
er

though

Quantity

measures

the influence of velocity,

However,
third

which,

pared

Improving External Appearance

the

in

lost

anyway.

-corrective

hardly

those

on

occasions when all seems

rare

this

psychological

note

persons

perstitious
acting

supply of

the

than

monetary
it.

the

effect—

equal—is the

if the material

as

currency

level

being

of

simple device of circulating a cur¬
rency of such attractiveness that

all, or not yet fully, developed.
For
only underdeveloped
econ¬
omies continue to cling to the su¬

spite of the objective quan¬
it is itself strictly subjec¬
psychological, and qualita¬

makes Ttserf

at

a

rency,

an infla¬
in part by

held down by too thick a layer of
sterile froth. And this should and

a

sub-category of currency infla¬
tions, but merits both a separate
name and
separate consideration.

either not

are

factor,

many

-of

they

mand

The second and

known cause of inflation is the in¬

titative effect velocity has on cur¬

NATIONAL

changes

measures
have f there¬ why
in
its
terminal
littie controlling effect over
phase every inflation is

them.

For in

BANK

quality

great

tion

affecting

causes

Monetary
fore

The

With G.

three

level

prrce

is

They

Street.

Clark

South

W.

Henry

Loverd,
Frank

the

Of

.

omies

are

pal

Admit Three Partners

of

speak

bills, they will just cir¬
(other things

the faster-

all

remaining equal).

tionsft

currency

Kidder, Pjtbody to

level.
there¬

If there

supply of currency.

fewer

are

demcmd infla¬

treasure.

of the New York Stock

culate

of

borrowing the

was

must

price

hypothecated.

been

had

borrower

in the

We may

Dr.

the

more so as

rectly but inversely with changes

by necessity
drive u p t h e

insurance

an

Reserve

in sup¬

pressure

the calling

was

; velocity

cal

psychological determinant of ve¬
locity causes it to change not di¬

ply, the added
p u r e h asing

increase the pressure.

so

A

This the

whatever:

of this kind

precise,

more

pressure caused

deteriorated to such

responding in¬

•;

loans

other. George J. St. Germain, 234 North

earlier date we pointed out

an

V

the

means

economy.

-Another facet that bears

ing

.

with borrowers
having to go into the money mar¬
ket to bid against others for funds
of

calling

money,

the
industry.
In

the

comes

less

and the alternative is to cut down

these purchases huge expansion plans by a num¬
In the words of ber of the larger corporations cer¬
comptroller,, "it's money tainly will not make for ease in

bank

for goods in general. Un¬
this is matched
by a cor-

amount,

adequate

an

getting par for
as
they mature.
one

demand

But many of the country
cannot
readily raise new

banks

the

the'tT^hav<^D<>^a£f££t

can

currency.

felt at this moment, for exanfple,
in Puerto Rico. There, the physi¬

rid

System

crease

savings, re¬ the
maturities at a ing to the accepted regimen.

discount,

substantial

be

to

tionary

a

Federal

applied

to

be

to

or,

help reduce its turnover.

three

due

be

may

position.

for tax

loss

the

not hesitate
loss, utiliz¬

do

afford

can

-are

One is the increase in the

Inflation
causes..

when loans be¬
come
unusually large relatively,
suggest the issuance of new capi¬
tal vto
back up the bank's loan

season

to sell some issues

a

of

but

controlled^ by "the

issuing

velo^iljy inflation

A

phenomenon is to be found in underdeveloped
developed countries. Proposes improving attractive

appearan^e~oi~mc*!ey to

be

cuni

authorities

and that this

-rather than

The examiners,

country pedient

banks, are in a better position as
to
maturities
than
the country

have

to

inflationary causal factors

"choosy" with the borrowers.

government icy,

the

It ohas

market.

volume

banks

cash

"

banks

the

loans on their
books, relative to total assets, de¬
spite the fact that with the de¬
mand for accommodation so great

pos¬

sibly late in the 1957 first quarter
the Reserve will be more-or-less

bond

the

that

banks

some

for

heavy

on

figure to all higher grada¬

name

at

exafttlniiig-.authorities are taking
sharp issue
ovtfF It*-* Ait§r_ all,

the

spending.

the time of heavy

hood that

were

to finance in¬
the season's trade,

part

in

•

such

of tired it should.tiifr country's economy ex-*
higher
interest perience trouble it will" not be

added

These

rates.

relationship is becoming

this

that

this

depicted by Professor
Kohr who, instressing one of them, points out the inability of
conventional monetary controls 'to Trope with velocity inflation.Claims cash velocity is more significant than credit velocity,

tightening

generally

supplied

Three

confidence

of

quality,
appearance, of currency. And

the

University of Puerto Rico

Bank Stocks

question

a

of looks. It is the external

By LEOPOLD KOIIR
Associate Professor off Economics and Public Administration

=

17

(17)

The Commercial and Financial Chronicle

.

to simple

the recognition

show the road not
but

possiblv

also

highly effective tools of inflation¬
ary

controls.

.

18

The Commercial and Financial
Chronicle

(18)

on

5y0 shares held) on the
of
the
company
which was payable, and was paid,

News About Banks
NEW

Dec.

on

Dec.

NEW

will

Bankers

and

OFFICERS, ETC.

19,; 1958,

5,

BRANCHES

REVISED

stock

of record

CONSOLIDATIONS

at. the

be

them

issued,

but

been'

made

have

for

the

shares

,

to

to

First

pf New

£6

National

York

City

announced

President, Raymond Concrete Pile
Co.,
New York:
Dr.
Mauricio
Hochschild,
Chairman
of
the
Board of the Hochschild group of

Dec.

on

the

appointment of' T. Carl
Wedel, Richard E. Thomas. Fred-

companies,

Chile;

Santiago.

make

up

share.

a

Bank

item

\

Richard

J.

President
New

the

umcer

$200,000 of

resigned

Director

National

Bank

Hampshire,

In

as

/

vind

tal

appeared

13,

page

Qi-

in

our

-Sl—

.

L. McCaffrey, Chair¬

John

iX&y;

on

the

Co., Inc., New

Streets

Nashua,
of

as

Guaranty

New

Trust

York

of

R.

M..

erick
M.

Satterficld

M.

Satterfield

Vinton

Wedel

Alfred

and

ap¬

identified

Person

Trust

with

associated

Alfred

The

York

with

President

H.

New

to

of

Vice-

transferred

tion

in

1919.

Assistant

Sat¬

was

supervision

for

has

since

Division. '

Albert

*;

.
(

3

M.

&

_

Chemical

Corn

of New York

visory

is

Board

Business.

Exchange Bank

organizing

an Ad¬
International

on

Harold H.

Helm, Chair-

and

gage

'

Spring
mezzanine

New

of

Lewis,

bank

opened

first

Mutual

State's

Estate

Division,
H. Cavanaugh. and Charles
Haggerty.,, Domestic Banking
Division, Francis G. Martineau,
Purchasing Department. William
Rbpucci,^ G.v .Robert; Truex. and
Ni.cholas Ustin,- Domestic Bank¬

New

in

in

-

merly

W*.

York,

according to
by J. Wilbur

-

Mr.

he

Robert

is

charge-of-general-op-

and

of

personnel.

Assistant

1954

For¬

Vice-President,

also

elected

was

Sec¬

been connected with the
Estate Department for
many
In 1943 he was elected an

Assistant

Secretary

and in 1949
Vice-President.
Both

Assistant
Mr.

Robert

been

with

Mr.

and

Union

25 years.

Hill

Dime

£';f:

;

.

have

Sibrava,

International

Division,
:■
,

Harold H. Helm

man,

announced.

N. Baxter Jackson
on

Dec,

31.

Be¬

lieved to be the first
group of its
kind in the commercial

banking
field, .it will consist of prominent

The

for

New

as

tries.

and

foreign

coun¬

Baxter Jackson, who is
Chairman of the Bank's Execu¬
tive Committee, has been
named
Chairman of the new Board. Oth¬
ers

who

have

accepted member¬
include the follow¬

ship to date
ing:

Walter J; Beadle. Vice-Pres¬

ident, E. I. duPont.deNemours
Co., Wilmington, DeL; Antonio

Hakon

Mexicanos; Mexico,

Christiansen,.

Chairman and
East

Asiatic

D;

senyey

.

.announced

of

been

the

banks,

in

*

The

*

-

board

of

N.

directors

of

the

Ltd:,. .Copenha-

Denmark; George F. Ferris.

October

has

de¬

the

pany

capital stock of
payable Jan. 10.

holders of
nounced

record

on

Dec.

31,

it

20

Leichtman, President.
addition

to

a

to

stock¬

was

by
This

semi-annual

;dend in stock-of 2%

com¬

the close

at

Dec.

oh

the

(or

ore

of

an¬

Jacob

of

Y.,

is

in

be

>'f

N.

Chandler
ident
a

have

*

step

cited by

Chandler

1953,

arid

position
der

has

made

strides," Mr.
as

great

Speare

tribute

a

leadership,

Executive

ffi

the

000,000,

and

Y.,

Bank

title

is

>

'..

the

Dec.

with
and

of

of

of

common

the

Port

First

Jervis,

stock

of

the char¬

County National

reported

of

in

1646.

the

merger,

would

not

less

capi¬
than

$407,359,
-

*

*

Merchants

the

issue

the

Co.

on-

merger
of

Oct.

Comptroller

announced

the

on

in

capital stock

of

reserves,

*

National

of

not

less than $6,643,402.

Jersey
Dec.

on

First

H.

the

National
J,

Bank

announced

advancement

of

Lages. Trust Officer,
Vice-President and

Assistant

Trust
new

Officer

of the

bank.

In

his

capacity. Mr. Lages will con¬
to handle the
administrative

tinue

details

Mr.

Lages is a graduate of the
American,- Institute
of
Banking'
of

the

Banking
where
career

he
it

at

Graduate

School

Rutgers

majored in

banking

of

University,
trusts.

has

been

His'

to

The-

Chairman
tors

bank

the
E.

he

Marsh,

from

1918

Marsh

elder

was

of the board

.when

Marsh

the

at

1940.

died

of

in

direc¬

1944.

Mr.

has
been with
the
bank
1934, following has gradua-

since

tion from Princeton."
-

A

2-for-l

proposed

stock

split

has

been

the directors of the,
County National Bank of
City, X.. J., it is learned

Hudson

Jersey

by

from advices to the Newark "Eve¬

ning News" by
who

ant

"The
a.

SI

million

will

staff correspond-

a

reports:

''

proposal

be

at

?■■■

which

increase

voted

holders

in

^

involves

surplus,

by the stock¬
regular
annual

upon

the

meeting Jan.. 8. The board
placed the bank's stock on

also

$4

a

dividend basis

$1

by declar¬
quarterly dividend.

Previous

quarterly dividends

ing

a

.

75

were

cents

share.

a

split, the bank's
outstanding
shares- of

value

100.000

will

shares

bank's

be

of

surplus,

par

now

be

.

50,-

replaced

$25

.

Under

stock

$50

by

value.

totaling

increased

to

$3,500,000 by transfer of
$1,000,000
from undivided profits. Since
cap¬
ital stock is worth

$2,500,000, the

bank's

capital and surplus would
increased .from $5,000,000 to

be

$6,000,000 by the

transfer, thereby
increasing its lending • power per
individual
to

account

from

$500,000

$600;000."

en¬

Harris Trust and

as

a

Alter progres¬

appointed Assistant Trust

1

planned

take possession of the
property
it recently purchased at 123
West
Monroe Street, it was announced

to

on

Dec.

ner,
tem

26 by Kenneth V. ZwiePresident. The parking sys¬

presently operated
by
Dowmtown

location

as

he joined

Savings Bank

of Chicago, III., on Jan.

Department, which

was

to

Gustave

father, the late Spencer S.

occupied

Stations.

he

of

capacities the last six
Mr. Marsh, whose appoint¬
makes him the bank's third

tirely with First National's Trust

sing through the various positions,
Bank

succeeding

of

the Trust Department,
working with Herbert S. Croft,
Vice-President and Trust Officer.

and

is

duties

$2,500,000. would

*

Nickerson. -Pres¬

City. N.
26*

Vice-President

a

ranking
officer - after
Messrs.
Cowan and
Wiedenmayer, is tak¬
ing over the same post that his

The

❖

S.

,

Marsh,

both

profits, in-'

capital

&

Newark,

to

1950,

years.

shares of common stock of the
the
par
value of $10 each:
s-urplus of $12.-- 000
270.000: and undivided
par

eluding

of

recently announced by
Cowan, President, ac¬

G.

date, annual

effective

receiving associa¬

have

the

Cash¬

Newark

Co.

part:

ment

Hartford

Trust

for

messenger in 1935.
•

under

the

The

that at

Bank

Hartford,

stock of $10.-

our

Currency

14

of

of

&

Plans

noted

page

of

to

announced

profits, including

reserves,

The

14.

of

common

bank

undivided

18,

title

ident of The

capital
stock of $650,000, in 65,000 shares
of common stock, par value
$10
each; surplus of $1,000,000; and
tal

Dec.
were

National

effected

Bank

National

L.

to

and

t;t

common

was

Theron

Wiedenmayer,
Executive
VicePresident, who has been serving

of

Company,

Conn, with

the

Cashier

Vice-President

Hartford

Trust

&

of

Providence

Banking

since

Bank

the
Windsor
Trust Company of W indsor,
Conn.,
with
common
stock of
$150,005,
into

New

was

"Mr.

the Continental

#

merger

of

J.,

in

Screw Co. and of the Hv-Pro Tool

The

ex¬

the "Newark Evening
News" from which we also
quote

"and

Co., both of New Bedford, Mass.

,

one

i

of Vice-President

Robert

Boston,
Ma.ss.
announced
on
Dec. 26 the election of Charles H.
Ward well as a director. Mr. Wardis

10,000

distributed

24, 1956 amounted

promotion
of

cording

of

Treasurer of

be

the basis of

on

$14,712,000.

as

forward

National

over

ier

valued services."

Rockland-Atlas

will

.

is¬

shares of the par value of
$z5 *
per share. Total capital

Essex

outstanding
to
the
institution, the
board of directors adopted a res¬
olution expressing
its apprecia¬
for his

the

$4,250,000, represented by 170,-

N.

the

stated,

which

involve

additional

an

shareholders

post

services

tion

shares

The

his

to

of

suance

Marsh

joined the bank in

Vogt's

payment

will

to

recently held the
Vice-President. "Un¬

of

The

dividend, amounting

$250,000,

clusive of
reserves, as of the close

E.

Speare

Board.

the stock

to

has

Mr.

bank

Mr.

27

of

the

James

the

of business Dec.

resignation.
of

Dec.

on

Raymond Peterson, Chair¬

of

funds,

"I

assuring" continuity
of
policies at Indian Head.

present
Mr.

Vogt's

made

-

$4,000,000

Executive Vice-Pres¬

as

was

stock,
issue,

1

*

$360,000:

with

solidated

1

to

000

fellow
of

F.

man

to

continued

of my
staff."

election

of the

$200,000. effected under

divi-

share

Mr.

new

Nov.

Bank, Middletown. At the effec¬
tive date of consolidation the con¬

York

will

the

recent

result

a

of

Company

New

The

Kingsbury

ter

of

accepted

by.

Commercial State Bank and Trust
clared

2,

for each 16 shares
owned.
This action will increase the
cap¬
ital
of the bank from

service

Speare, Chairman

The

County National Bank

Middieton.
stock

National

-i

in

$37,800.

our

consolidation

of the

1953

Jan.

share

Board of Directors of the Indian
Head National Bank, stated that the
board of directors had
regretfully

August
*

specializing in for¬

as

sale

its

$10,270,000, divided into 1,027.000

1861.

■The

Bes¬

on

F.;

page

eign exchange, transactions.
'i

and

of

indicated in

was

the

Mr.

capital

dividend

issuance

Francis. B. Bessenyey

joined

has

Deputy ,'pusiness




Company

J.

Managing Director,

Co.,

of

stock

a

Henry

an extra
semi-annual div¬
idend in cash of 50 cents per share

-

gen,

Trust

its

earlier increase,

&

Bermudez. Director General, Petroleos

J.

and

hands

and

Sceva

tion

$800,100

YVY"
,'•

Corporation

Assistant Treasurer.

industrial leaders from the
United
States and marry
N.

of

have

York

.

..'
.

able

officers

over

"

from $693,900 to $762,300. has fur¬
ther increased it to

.Assistant

V

.

Banking

Schroder

election

''

*

if.

directors

Schroder
and

'

-y'

.

increased

Banking

named

were

Secretaries.

necessary," "■ Mr.
letter to the bank's

stature

by

to

"Recent

confident
the

of

Bank¬

William H.

ac¬

community," he added,

Hill has

years.

The
Valley
Stream
National
Ham-. Bank & Trust
Company of Valley
m'o n d,"
PersonnelDepartment, Stream, Long
Island, N. Y., which
Maurice F. Harri
and

the

National

Alden ; tW.-

■

to

charter. and

Real

President^ -from Assistant Secre¬
tary. Melvin L. Cooper and James
Division,

stitution's

retary. which title he retains. Mr.

ing.Division, and John W. Welsh,
International
Banking -Division,
were promoted to Assistant-Vice-

ing

a

this

policies
which have been
responsible for
the exceptional growth
in,this in¬

well

President.

Officer

Domestic

when the

York

erations

Stubenrauch.

This is the 328th
dividend
declared

aiT announcement

Tax Depart¬
Cataletto, Mort¬

Real

Vogt said in

which

Savings

Bajfk

Lri

J.

announcement

affiliated

dividends

year-end

John M.
Robert
and
Ross
D.
Hill have been elected Vice-Presi¬
dents
of
Union
Dime

Jere

E.

1819

L.

John

ment,

*

at- 60

the

is

under

becomes

stockholders.

and

super¬

TYY-.'

The

Bragtz.

"

*

of.ice

Savings Bank.

the operation of the bank's
Tax and
Insurance
Departments in the Comptroller s

the

Philippines.
charge of Head
Office supervision for
Argentina,
"

quarters.
an

tion

am

consecutive

Accounting.

Mr.

'

ground floor

month.

as

Bank

through stock ownership control.
"Differences with representatives
of the controlling stock owner¬
ship of our bank, through the
bank
holding company, created

total 3%a
year.

vises

Uruguay and Paraguay.

banking

days of the quarter will earn
dividends from the first of the

from

promoted

Comptroller and

terfield has charge of Head Office
Vinton

a

will continue

including

Oct.

Savings
long term

ness

Vice-President and Deputy
Comptroller.
Mr.
Lafferandre,

the

to

Mr.

the

River

River

deposited during the first 10 busi¬

Edgerton A. Patti-

assumes responsibilityfor
banking district, covering the who has been with the Irving
since 1939, is associated with the
states of Colorado, Illinois.
Iowa,
Kansas,
Minnesota,
Missouri, bank's Mortgage and Real Estate
Montana, Nebraska, North.'Da¬ Division and has supervision of
kota. South Dakota and Wyom¬ all bank premises.
Mr. Pattison,
ing. He succeeds John M; Potter who joined the Irving organiza¬

District.*

East

will be credited with inter¬
dividends computed from
day
deposit.
In
addition
money

est

the promotion of

Lafferandre

and

of

N.

erson,

annual

National

deposit vault space. The.
Lexington Avenue subway has a in

the

been

1925- for

and safe

to

son

Thomas

has

in

taking back

on

Street,

Department;
the Foreign

Company

announces

Charles

airlines, railroads, trucking,
shipping and other carriers. Mr.

Southwestern

the

The East

bank

the

on

the

erected

riod

Irving Trust

the

Transportation Department of the
Special Industries Group, dealing

who

Yorkh^dM the

Mr.
Rohrberg with
station at
Spring and Lafayette
Department, and Mr. Sandstrom
Streets under the
with the Banking Department.
building. The
Italian Savings. Bank started
in
Guaranty
has
also
appointed
1896 in the immediate
Louis F. Geissler, Jr., Joseph F.
territory of
this office.
Once
a
residential
Mvles, Paul J. O'Neill, F. Frith
neighborhood,
the
section
has
Pickslay, Jr... and Ellis A. Sim¬
been
changing in
recent
mons
as
years
Vice-Presidents; Wesley
and is now more
L. Baker, Trust Officer; Thornton
industrial, than
residential.
D. Strecker, Assistant
Comptrol¬
ler;
Paul
G.
Norris, Assistant
A
change in dividend period
Trust Officer; Edward C. Pederfrom a semi-annual to a
sen and JarneS E.
quarterly
Ryan, Assistant
basis
starting Jan.
1, was an¬
Treasurers; Thomas H. Maguire,
nounced by Alfred S.
Mills, Pres¬
Alfred^ H. ■'■Meyer,' James
FY ident
ol The Bank for
Savings In
O'Rorke, and Perry O. Sanford,
the City of New York.
Assistant Secretaries.
Money de¬
posited during the quarterly per-

Vinton

with

New

with

is

lease

Judd.

Vice-Presidents. Mr.

as

is

M.

C.

Bank

and Frank
Vice-Presidents.

as

Judd .is

bank's

F.

Howard

of

was

29, 1932.

of

Rohrberg.

Sandstrom
Mr.

the

announces

pointment
Clifford

Company

payable

in

ItalianSavings Bank, which conditions

the

York.

merged

j

27 the East River Sav¬

12-story office building. at£ 225
Lafayette Street, New York. The
building at- Lafayette and Spring

International Harvester Co.,
'M; Chicago, and Henry B. Sargent,
ft' President, American
& Foreign
man,

Power

was

authorized the
stockholders' meeting,
January, he stated on Doc. 25. payment of another stock diviHe alsp
resigned ^ President and dend, subject to approval of the
stockholders of the bank at their
issue of Dec* DfrtviOr of New Hampshire
Bank-—"
C--- ^ Shares, Inc., the bank holding annual meeting which will be
held on Jan.
22, according to an
company with which Indian Head

bearing

2514.

—

r^tox.

1950

in

bank's plans to increase its capi¬

"On Dec.
Ma^frrilig Di*»
Oslo, Nor- ings Bank

LorentzenI

'

*

and

holders of record as of Dec.
18,'
the directors of the
First National
Bank and Trust
Company of Pat-

'

'

1948

addition to the regular semi¬

share,

Indian

effective

in

Trust Officer.

annual cash dividend of
$1.50 per

•-

.

of

of

Thursday, January 3, 1957

.

named

■

Vogt

and

.

as

-

Head

whole share, at $58

a

An

the sale of

stock.

new

to

buy for them additional fractions

The

result of

a

sell

or

$1,500,000 to $1,700,000

■'

arrange¬

stockholders

Company
of
Syracuse,
increased its capital of Dec.

Y.

17 from

business

Fractional

lrust

N.

stockholders

to

close of

1956.

not

ments"

CAPITALIZATIONS

&

every

capital

.

of

Inc.,

was

at' this

Parking

discontinued

Dec.

28.
This
property,
adjoins the Harris Trust
Building to the west, was pur¬

which

chased

last

work* will

April.
start

Construction

immediately

to

.

-

the

convert

of

floors

several

have

The

space.

The Commercial and Financial Chronicle

.

.

four
will

into

openings

the

Marcus Nadler,
the present

banking quarters.
The
purchased
in
April,

present

also

bank

16-story building at

1956, the

It also

West Monroe Street.
the

international situation, ascertains the possible out¬
crisis, and weighs the potential effect upon

105

the

that

bank

"

of

permanent

a

its

on

Hanover

clared

"The

First

National

in

indicated,

are

Amer¬

company

bank

Brownsville

Dec.

on

4

attracted

re¬

outstand¬

the

by

ing reputation of the bank and
by the high calibre of its key
managem^ht personnel headed by

Ordell\

further impressed by
highly regarded in¬
ternational banking relations, es¬

They

and

Mexico

in

pecially

other

circles."
unsuccessful

American financial

Latin

the

in-

Included

bidders for the

stock wem Shearn

Moody, Jr. of Galveston^and Clint
W. Murchison of Dallas. Five bids

Mr. Mosser and Mr.

opened.

were

oilmen and
is Presi¬
Associated Oil & Gas Co.

Bintliff

Houston

are

dent of

Mosser

Mr.

financiers.

Vice-President,
among
other interests.
Both are
substantial stockholders and di¬
rectors of the Bank of the South¬
Bintliff,

Mr.

and

States

and

p

west.

help

endeav-

are

'

.

„

Not knowing where the Soviet

strike next or how
they will react to their decreased
may

power

the

in

United

satellite

States

allies,

the

In

countries,

could
and

must-maintain

the economist adds.

long

events\in

however, the
Hungary

run,

Poland

and

la^dto "favorable political

National
Calif., with
common capital stock of $300,000,
effective Dec. 7, was absorbed by
The United States National Bank
of

Pasadena,

Diego, Calif.

San

of

«

*

the

international

that

munism

has

of Com¬
merce
on
Dec. 26 announced the
election of Frank M. Ross, K. St.
Bank

of

tenant-Governor

Lieu¬

LL.D.,

M.C.,

C.M.G.,

J.,

from

now

will

on

recede," he states.
In

analysis of the Suez crisis,

an

Dr. Nadler goes on to

t.he

oil

East

predict that

in the flow of
likely to have

interruption

Middle

is

of Western

Ltd.,

Fabricators

(Canada)

Paints

Bridge & Steel

International
Ltd., Canad an

Lim¬

Dredge & Dock Company
ited:
President
of
West

Coast

Shipbuilders Ltd. and an official
of various other companies.
On
Dec.
27
the Canadian
Bank of
Commerce
announced the elec¬
of

tion

M.

B.

Hollmeister, C. B.,

B.C.,

C.B.E:, D.S.O., of Vancouver,
to

its.

board
of
directors.
is Chairman of

Hoffrneister

Mr.
the

MacMillan & Bloedei
director of Canadian
General Electric Co. Ltd.
Board
Ltd.

of

and

a

*

The

of

#

Despite

the

American

for

pressure

oil,

the

resultant

Western

on

Europe's

gold and dollar
lead

to

to

reserves

in

cut

a

is bound
from
Middle

exports

the U. S. to Europe and the

East, he asserts.

Coming at

time when produc-

a

tjive capacity of some of our in¬
is

dustries
the

outrunning

demand,

will tend to
activity in the U. S.,
the economist explains.
Dr.
Nadler
lashes out
at
the
"machinaiiops"
of
the
Kremlin
exports

in

drop

slow business

hierarchy

who,

charges,

he

were

large extent" responsible for
the recent troubles in the Middle

"to

a

-Chicago,

111.

reports

a

Bank

capital

$1,650,000, the amount having
been increased to that figure from

of

$1,500,000 on Dec. 11
dividend of $150,000.




thrives

Communism

economic
which

political
unrest
in countries

and

it

the

on

create

can

beyond its orbit," he says.
" time
rational ap¬
proach
to
the
Middle
Eastern
political problems can be made, a

considerable

"Although

elapse before

solution

be

must

in

economies

of

all

the economic

which

it

and

by a stock

beyond
a

The

offered

by

—

in

folio

The

rialism.

by

in

ruthlessness

the

Poland

and

particular
points

Hungary

that the

—

light

impe-

Soviet

of

revolts

Hungary were led

up

significance,
for
it
inherent weakness
pf the Soviet

the

contradictions

system.
(2)

affect

v

-

The ruthless suppression of

international

the

people will weaken

Communism

policies

countries. Russia
to

Central

in

glaring

a

fact

Finance

workers and young students
proletarian background .is of

and

of

and

neutralist

will not be able

exploit the satellites as in the

will have to be
farmers and workers,

past. Concessions

granted

Suez

adversely
Middle

the

Eastern

crisis

to

'

he

associations'and
cannot

conserv¬

commercial

banks

of

this

class

agree

the

safety,

their

of

commercial

institutions?

*>

Position

banks

in a
liquidating stand¬
Generally they, have a fair size port¬

point.

today

are

a

be

of

government

permitted to hold such

are

taxable, and

found

will

-

harmful"

securities purchased at par or higher,,: and
bonds for statement purposes at the
purchase price so long as they are amortized to the par value.
Such bonds at book value pay a small rate of interest which is

con-

can

loan

interest

precarious condition from
W. J. Field

countries

Although

be

bank.

;.

not

in

sufficient

way

any

to

pay

larger

deposits.
bonds, from a liquidating standpoint, show a
considerable loss and such loss in many cases, if bonds

>

for

rates

savings

These

affect

economies

of

the

countries

and

the

marked

to

down

very
were

value, would greatly reduce the bank's

market

surplus.

The .economies of both sectors are
interdependent; their future depends on the uninterrupted flow

size bank
loans.
Many today have their limit of mortgage loans and have to
sell'from the mortgage portfolio to take care of commitments
made to n£w borrowers.
Again, if they have any leeway in the

of oil and on mutual cooperation,

mortgage

well.

as

United States to finance the purchase of dollar oil, the gold and
dollar reserves of the Western
European nations will decrease,
This in turn may lead to a tightening of foreign exchange controls, and, under certain condi-

Hons, to a devaluation of some
European currencies.

The

(6)
Suez

crisis

economy

is

on

Despite

mand

for

of

United

the

likely to

able.

»

efffet

overall

the

States

unfavor¬

be

increased de¬
American oil, the presthe

sure on gold and dollar reserves
ln Western Europe is bound to

^

?XP°^S

ajC^A

,

^

a

comes

considerable part of the earnings of the medium

-1—--

business activity,

mortgage interest and interest from

from

limit, they cannot afford to sell and take the loss on
to provide money for further loans.
Now these
raise savings, rates to meet competition
and save their savings deposits, a condition that may get them
in serious trouble.
~
;
,
governments

t

Many
proper

J.

McElrath,

troller, who joined the firm March
1909,

has

Manager as
nounced

been
of Jan.

appointed
1, it

was

a

bank.

bankers today have developed a tendency to become
dissatisfied with such normal growth as their community affords,
and

have

developed

desire to encroach

a

investment advisors and securities
brokers, with offices in New York,
Boston, Chicago and Philadelphia,
Gerard Rosier, Assistant Comptroller, who joined the bank in
January, 1951, succeeds Mr. Mc-

on

the neighbor's ter¬

cannot

ritory by offering inducements which the poor neighbor
afford. This is a condition which the banking authorities
consider

instead

of

catering to demands

should

permitting such situa¬
"

tions.

*

of increasing the money supply for business loans
would be to have a law limiting the amount of savings depos$U
a

way

savings bank, savings and loan

could takg

from any one

association or.a commercial bankV
Such amount should be either

person.*

<^q thousand. The idea that the increased rate will increase
and will probably only result in stealing
deposits from the bank that cannot afford the higher rate. ■?-•
These situations will have to be watched Very carefully by
or

savings is questionable

grow

are

their desire

departments to be sure that bankers in

not

jeopardizing the safety of their institutions.

Exchange Offer to
Colombian Bondholders

an-

by Brown Brothers Harbankers,

C

'

Many

1958.
First

The

30,

1957

York, 2 Wall St., New York, N.

of Colomb'a
,

,

.

,

6% external sinking fund §0,cl
bonds, due Jan. 1, 1961; 6%_ external sinking fund cold bonds 01
1928, due Oct. 1, 1961, and appurtenant coupons, are beiqg notified

Y.

Bros.

(Special to The Financial

Holders of Republic

to

exchange agent

Joins Sutro

Extended for One Year

~

June 30,
is The
National City Bank of New
June

from

Comp¬

_

Deposits

savings

with the location of the

to

Appoints McELrath

Small

deposit department of any bank should
contemplate a large number of small
accounts which would
mostly be placed with them because of convenience and should
shun large accounts which do not belong in a savings depart¬
ment.
By building savings in this way the savings department
would have more stability and would have a growth consistent
A

the examining

Brown Bros. Harriman

consumer

banks-will be tempted to

One

,

Canada and the United States to
Europe and the Middle East.
Coming at -a time when productive capacity of some of our industries is outrunnm & demand, the
drop in exports will tend to slow
;n

A

riman & Co., commercial

notably in

revealed

haive

are

4

Developments

Europe

of

Banking and

Nadler:

Professor

(1)

The

(5)

1,

conclusions

following

of

meet.

Many

on

in order to prevent further Soviet

Thomas
V,W

savings and

rates

Liquidating

countries

Eastern political problems
made, a solution must be

order

Conclusions

and

jeopardize

may elapse before
rational approach to the Middle

tion," the economist warns.

in

orbit.

it

commercial

interest at the new rate, it is question¬
able if they can earn such rate and will they

political unrest

create

can

its

whether this is

will

and

size

see

P

concerned. Communism thrives

question

move

medium

of the vital commodity will retard

prevent further Soviet infiltra¬

to

the

If

a

found

The

to pay

important outlet for its oil. Unless
substantial aid is supplied by the

demand

limit.

atively

must look to the West as the only

increased

3%

conservative

which

The under-developed Middle East

Decrease in U. S. Exports

interest

banks

Producing countries of the Middle
nf0S+ a
to Western Europe, and
A arW. interruption in the flow
the

person.

have

Naturally every commercial banker wants
his bank gfrow TnYsize and many have
lost considerable saving# deposits becausfe of
the
larger
interest
rates "paid
by \ savings

the U. S.

on

economy.

the Hungarian

*

Merchandise National

a

to

fj

unfavorable effect

an

lumbia, to its board of directors.
Mr.
Ross
is
Chairman
of the
Board

to

developments,

Western European nations

Co¬

British

governing
rate

importance of oil both to the

Com-

"reached the crest of

and

wave

may

?

Canadian

The

the

interest

banks

been clamoring for per¬
-rate jpn
savings deposits 'and
authorities have suCtumbed and raised

the

a

econo^ite results," for they infiltration.

indicate

Pasadena-First

The

finally
the

increase

to

tl011^* Tiie Red hierarchy knows

to

East

Bank

mission

;ln!;:?^,XtCp'S[°hSovietunulfhi',a'

increase

extend

one

any

The Jargfcf • commercial

our

while the basic problems
confronting the Middle East are
deel,-ro(ded »nd complex, recent
developments may be ascribed to

yoke, Dr. Nadler points out.
*
'

leaders

were

bank's

the

aid

.

President.

Roberson,

for

>

-

have to be in-

these

of

banks;

deposit amount

own

*t^ its militai y strength and that siderable time
own
ot

ported total resources ^of $17,878,000
with total deposits of more
than $16 million.
Advices in the
matter also state that "the suc¬
cessful
bidders
said
that
they

W.

face

the

to
consummate
purchase before Jan. 7. The

were

a v

m

oring to free themselves from, ,the

expected

their

in

suggests law limiting maximum savings

undesirable.

t U

those satellites which

Soviet

Representatives of the
opened
the
sealed
bids
in
Galveston.
The
successful bidders indicated that
they

the

Ppntral

to

and others.

insurance

tion

the Moody Interests

of Galveston,

effect

Consequently any reductaxes is unlikely and, in

Insurance Company

National

ican

may

creased.

fnr!p

Nadler

economic

Harry

of stock, it is

a

on

Interna-

United

high¬
stock in
Bank
at

Mosser of
Houston,
the
C. Bintliff
Interests
of Houston, and
Lloyd
M. Bentsen of McAllen and Mis¬
sion.
Present owners of the block

States.

allies will aid
have to be maintained,
Economic

^The^rpvolt-?

struc¬
Clark

J.
David

by

the

and

to

Brownsville, Texas, has been sub¬
mitted

creased rate will be harmful to medium size commercial

Red sai¬

military strength and that of

Crisis,'
published by

the

that

controlling

for

bid

est

the

m

report

Eurone

announced

is

the

among

an

1

Marcus

It

Unrest

Our

properties.

Street

(3)

;

United

architects and

erected

will

on

."

on

engineers are working with the
bank's building committee in the
be

now

ellites must surely have

to

tional

to

from

economist

needs.

ture

and

wave
>

ler, consulting

to its

The

designing

Recognized Jersey banker doubts 1 increased savings depositsavings; examines whether this in-

interest rate will increase
i

banking structure. Since
the
additional
properties
were
acquired, the bank has been re¬
appraising its original building
plans in the light of its long-range
Meanwhile,

war

potential. " International Conimunism has reached the crest of the

Nad-

Marcus

present

•

and this will cut into Soviet

aesirable," .Dr.-recede.

latter site
had ; originally

planned to build an annex

|

President, Commercial Trust Company of New Jersey

this

on

'

By WILLIAM J. FIELD

owns

alley across from the Field Build¬
was

Savings Accounts

on

the U. S. economy. -

at
114-128
South
In the face of current internaClark Street extending 80 feet on; tional turmoil, any cut in taxes
Clark
Street from the 105 West in the United States is "not only
Monroe
Street
Building
to
the unlikely but actually may not be
It

Policy

of the present

come

19

Sitfcll Commercial Banks and Rat^

Hanover Bank's consulting economist, analyzes

property

ing.

(19)

International Crisis and U.S.A.

quar¬

and

renovated

be

.

into

building

office

will

ters

5600

Number

185

Volume

Chronicle)

KEY WEST, Fla.—Clarence M.
Mcehan has joined the staff of
gu^r0 Bros. & Co., La Concha
BU)tel.
- ^
.

p

.

,

*

*

Pont Adds

that the time within which the
(sprc,al t0 the financial chronicle)
offer to exchange these bonds and
MTAMT
Vi
r
nporeethe appurtenant coupons, for Re'become affiliated with
public of Colomb'a, 3% external '
.
T
,
Pont
& Co.
121
sinking fund dollar bonds, due
pW Second Avenue
ican
Sugar
Refining Company, Oct. 1, 1970. mav be accepted, has Southeast Second Avenue.
graduated from the College of the been extended from Dec. 31, 19o6
Joins Safeway
City of New York and attended to Dec. 31, 19o7.
the financial chronicle)
St. John's School of Law. He is a
The period for exchange of
' .
RVanklin M
certified
public
accountant,
a convertible
certificates > for 3%
ORLANDO, Ma.
t ranK^nn m.
member of the American Institute external
sinking- fund
dollar Pugh is now alfiliated with Safeof Accountants and served in the bonds of the Republic due Oct. 1, way Investment Corp.,
U. S. Army in Africa and Italy 1970 in multiples of $500 principal c?^rt„_S_\5 „ ^
lorme y
amount
has also been extended with Bache & Co.
during World War II.

Elrath as Comptroller.
Mr. McElrath was made an Assistant Manager in 1943 and appointed Comptroller in 1948.
Mr. Rosier, formerly with Amer-

,onf,riai to

29

The Commercial and Financial Chronicle

(20)

is in1'

Restoring International Trade

vehient

By J. II. CLIFFORD JOHNSTON
of the

Kingston

Directors,

the creation

on

of

and credit, and

money

to

sovereign of 3.554684

weight

today.

The

old

would

grammes

sovereign

could

be

the

then

three

trade, and "bad"

money

Thus

and
credit, and free gold circulation between clearing banks, is
proposed by British, writer anxious to restore the original
which includes

money,

i

clearing house tax

a

Bretton Woods

proposals.

trade

international

altering
the world's safeguard against the most crimi¬

possible either to deflate or inflate a gold coin except by
its

gold content,

was

political maneuvers—the devaluation of money.
Today tne Bank of England holds in the Exchange Equnization
Fund a hoard of gold coins which earn no revenue.
nal

Clearing House, which has never been worked
on a business basis, also earns no revenue and is a big expense
•to the 11 clearing bankers.
In these circumstances it is suggested that the Bank of England
London

The

few

invests

a

capital

of

million

private

a

coins

gold

the purchase

in

would

which

company,

of the entire

issue

a

debenture

thus, incidentally,
providing it with a stable gold-coin working capital.
The Clearing House would charge the banks a poundage for
its use and make ra considerable profit, which- would eventually
reach the taxpayer, for the Treasury owns all the capital of the
Bank of England. As the Clearing banks would recover all their
and

thereon

the London Clearing House,

buy

capitaj expenditure and be paid for their services in future every¬
body'profits, and the transaction could be completed overnight.
TnW, although a purely local operation concerning only tne
themselves; would lay .the foundation for an important in¬
ternational" development hinging on the circulation in the Urbt^d
States of a gold dollar as their local legal-tender standard money,
which event would herald the outside world s long delayed escape
banks

inflation.

I

The Lost Coin—A Gold

Two

since

ending in

What

a

be

into

put

initiative

of

cooperation

an

been

billion

SI

a

a

the

very

Bank

simple manner on
of England
with

the

recent'

nation

reaped

rise

by

If

perhaps

Ite-Organized
But

is

is

still

Clearing

to the Governor of

open

the

Bank

of

England

buy the London Clearing House, transfer international
to a separate department to be cleared
through a

actions

trans¬

smaller

a

World

re-organized "Clearing"

a

with a standard of valuation in
stable working capital of "Bancor" gold coins to be
used only for free circulation between
the 11 clearing bankers
themselves, the world would once again have a universal lan¬
guage in terms of. which individuals of all races cculd trade mul¬
a

tilateral ly.

balance

the

of

payments, would then vanish,
individually by bank entries in
England, gold and dollar reserves would
requirements and the danger of bilateral

would

accounts

be

settled

the books of the Bank of
to

revert

petty

trade between

cash

nations

would

The

machinery, is simple:
the following lines:
The

of

Royal

be avoided.
a

company

The

Bank

ear-marks
11

(2)

on

to

rate.

of

England

the

Company

House

the

the

will

re-

for

indications

reach

in

Bancor sovereigns

subscribes

to

count

of

the

free

Ordinary

as

a

One penny
Less 5%

and
the

the

existing

concern
a

in

London

exchange

poundage

of

one

Bankers

for

the

penny

for

of corabout $1V2

adds

collections

tax

pay-

levels

present

at

as

accel-

in

the

In

debt

its

tions,
forced

the

to

Investors

short—term

had

ample

their funds) in fact,

the toim of

enable

were

press-

anticipation

Clearing

Debenture
use

of

on £ 144,000,000,000__.=
£600,000,000
£55,000,000 Debentures
—
2,750,000

597,250,000
say

Gross profit for the relief of

7,250,000

taxation, etc.

£590,000,000

charge, like that




on

the issue of Postal Orders,

has
rate

discount
late

longest

se-

in

it

as

did in

1956,

as long as investment activity
continues to boom, savings remain

in

short

tight,

supply

it

will

and

be

credit

difficult

the

on

other

than

obligations.
A„Pn

short-term

'

of

outside

the
in

banks.

Morbui

policy

19o6

as

undei

there

and

pressure

pronounced

advance

in

were

was

all

markets
eased
slightly
in
the
early months ol 19o6 but firmed
sharply in March and April, when
the discount rate was increased
from 2V2 to 234% by 10 Federal
Reserve banks, and to 3% by the

Minneapolis
banks.

This

ancf

San

Francisco

followed by some

was

easing in credit around midyear,
but in August the market tightened again, and the discount rate
raised to 3% nationwide.

In

November,
began

the

Federal

inject

to

through

market

operations.
$l!/4

some

supplied, which

pressures

the

the

eases,

the

necessary

will

of

Treasury
to

rely

probably

savings

find

the

in
it

issu-

securities

and

face

continuing
its maturing ob-

large attrition on
ligations.
Also, unless
of

as

activity

will

upon

short-term

bonds

are

the
•

far

in

was

more

York

City

terms

brought

closely in line with prevailing yields in the security markets,

Reserve

City

The

in

recent

large open market
probably do not represent a basic departure from an
essentially restrictive Federal Reserve policy.
In addition to off-

setting normal seasonal

pressures,

the Federal Reserve probably de¬
sired

to

moderate

liquidation
orderly

the

brought

Suez crisis in

conditions

effects

of

by

the

avert

dis-

on

order

of

the

to

in

the

credit

Chairman

Federal

Reserve

carefully

forecast

any

of

avoiding
policy,

credit

stated

before a Subcommittee of
the Joint Committee on the Ecothat

Report

"the;

Dec.

on

11,
coming

is

vear

1956,
to

a

rates
last

a

of

ments

November,
of

and

to

the

jn

1956

resources."

our

policy

trends

of

which

credit

still

are

enter

3nd

in

1957.

an(J

the

York

the large

the

year

in

prices

to

sists.

At the

evidence

are

of

investment
same

stm rising?
ssvings rel—

demand

bankers'

per—

time, however

for

be
recognized
that
tighter than it has been

is

credit

good rPiany years.

a

increases

in

post

years

two

panying

bank

The sharp
in

loans

and

the

liquidation

the

accom—

of

govern-

securities

have importantly
lending policies and the
liquidity of the commercial banks,

ment

affected

especially

in

New

York
City:
securities to
capital-funds to

ratios of government

deposits
risk

of

and

assets

short-term

levels

in

have

declined,

government
The

years.

business

and

portfolios

liquidity
has

corporations

of

also

deteriorated-'the ratio of cash and

current

governments to
declined

from

4hv

+n

liabilities

in

mid-1955

55%

thp

pnrl

Spntpmh'p'r

nf

i^56.
'

P

~

,

f, n*
?

I?a

,

,

probably
/L necessary noi desir-

atv?U'f

.

'

FedeiM Reseive to
n 111,
money market
same degiee of ;tightness,
°.r

.

reserves,

case

earlier

ness

boom.

in

as

the

to

this

foreign

the

was

current

busi¬

In

other
words,
it
that restraint upon

appear
,

A-

.

bank
".g can.J10w be made
more effectlYe without as large
a volume of net borrowed ref®rve.s as. Previously, a return to

about

part,

when
short-term

as

con-

should '

jt

serves

In

led

restraint

Business

shortage

ative

would

highest levels

.

over-

Credit Policy Prospects

continued

despite

.

disturbances

further

to

The economic

borrowed

been

math of the Suez crisis,
especially

holders

straining of

con-

to have reflected the after-

during

add

New

generally

quarter-century.

seems

of

purchases, interest
appreciably in the

months

the

international

could

reserves.

however,

firmed
two

reach

.

and

conse-

position

positions of New

market

open

Since

banks- outside

have

banks,

than

ea^e

to

market has eased

money

siderably and

so

thecorre-

statistical

fairly tight, and

business

open

eight

sponding

the

general magnitude

billion

furnished

amount

Re-

money

During

was

showing net free

Unless

pe¬

as

have fluctuated around the lowest

substantial
the

quence,

pressures

a

cate-

gories of interest rates during the
Conditions in
the
credit

in

were

re—

year.

liquidity mounted.
The cash financing operations of
the Treasury in 1957 should be of
same

it

other

purchases

CQSts

Wcis

as

Later

much

Reserve

cash

in

tinues active, employment is high,

t-

i*n

period of 1955.
about mid-November, as a

maturing issues held
Federal

for

although

that

moneymoney—such

jjJ?. ra^er consistentlyabove the
SCOUHl FStO,

we

stiictiv.e, the ciedit markets

the

one-sixth

offing,

noted

tight

of 1952 and the first
of 1953—the bill rate fluctu-

™

the

Open Market Operations

C^iedit

seasonal

refinancing
was
small,
only to about 3% of
maturing issues held outside the
as

of

stays

for

weeks,

anticipation

attrition

the

and

of

however,

riods

that

much

as

increased

Reserve

be

Ration

market

year,

has

ing savings, with personal income
at a new high annual 'rate

into

Cash

This

close with demands still out-pac-

amounts of funds

tax

in

above

uninterruptedly

November.

the

must

nomic
and

offered
was
a
27-month
note
in March; otherwise, major
reliance was placed upon the use

curity

or

remained

area, the Treasfind the going no easier
in the year ahead. The Treasury
in 1957 will not benefit from in-

serve

more

The poundage

offer

may

billion

ancfe

Expenses and adjustments,

October and

ury

$31 V>

certificates

on

weeks

debt management

was

1956.

poundage
on

Treasury to
other
than
of

ahead.
Thus, in both the fiscal

91-day Treasury
bills. Refunding operations totaled

special

the

the

year

or

and

fully

obligations
short
term either in its refunding or in
its cash financing activities in the

upon

laigc demands

tax

be

issues.

new

securities.

ing upon a short supply of savings, and few investois displayed
any
interest in adding to their
holdings ot Government obliga—
lions,
except
to
those
of
the
shortest maturity. Redemptions of
savings issues exceeded sales.
The cash financing of the Treasury in 1956 aggregated about $7%
billion, concentrated in four separate
financing operations in the
last, five months of the year, and
all in

doubtless

was

outlets, for

investment funds

for

1956

exclusively

rely

of

use

in

cash

borrowing may become necessary
prior to tax collection dates in the
January-June period.
In addition to its cash financing,
the Treasury in 1957 faces the refinancing of eight maturities totaling $39 billion,
Of these, about
$21 billion are owned by the Federal Reserve and therefore will

offerings

management opera-

Treasury

the

sec-

Treasury to interest investors in

nPhf
Debt Management

upon

the

two

reassuring.

tax

.

buys

and

capital
between

for

while

second, half of each calendar year,

the

circulation

rate

Board,

estimates, the
cash deficit in

corporate

oa/-.

of

rate *

encouraged speculation that an¬
other increase in the discount rate

although

amount

discount

the

wholly
Martin

in 1956, largely because the
eration

Small

a

the

to

Moreover,

to

the

be about the same

would

1957

these

.

December

-

possibly

remained

has

for

are

perhaps $10 billion in the first
of
the calendar year
1957
and a cash deficit of possibly $5
billion
in
the! second half.
Ac-

turned

for

rate

ket in recent months has not been

halci

cording

ir»

year,

the

pressures,

change in the- general economic
environment and a real easing of
credit demands would be required

in

of

Jul'y

nlo/in

the

Kingdom.

these

markets, especially as the "tone"
of the government securities mar-

cash surplus

a

fnl/n

of

so

advance

exchanged for
However, a significant

^

Current

half

the

Fund

could

close

Treas¬

by

foreign

and

defense

aid.

Federal

sovereigns

going
charges
clearing.

Issue

that

1957

moderate increases

only

outlays

and

situation

in

fn

expected to take place in the

ond

the

held

Treasury bills went above the dis¬

*

AYn0r»torl

amounting
55,000,000

notes

funds

generally

prospects are for mounting net redemption of savings issues. As in
1956, cash borrowings in 1957 are

March

(Limited)

clearing banks.

The

1956.

This, appraisal is based on the
assumption
that
no
important
changes in tax rates will become

issues.

Exchange

Ordinary Capital, say up
the agreed, gold content.

is formed somewhat

Debenture Issue, up to 55,000,000 pounds.

(1)

Federal

December,

enable

latter

S4.4

unexpected,

in

Monetary

Reflecting

;

«

issues

Bogc^y,

That

in

than

one

_

Bank account where this part of the
"poundage" would form a
-sinking fund to liquidate external debts. Then if the Mint
pro¬

shape of

$4 to $5 bilprospects materi-

these

alize, the Treasury will still show
an excess of cash
receipts in 1957,
but

commonsense

financial advantage whatever from the pu-rchase
of the Bank of England shares.

in-

$2 to $3 billion,
expenditures are expected

while
to

further

small

possibly

crease,

Jion.

e

fairly

a

the

no

with-

of

excess

vnooumr

only

the Deputy Master of the Mint.

of

•••/,

„

prospect for 1957 is that
rmch
xirill
ehmxr
Treasury cash receipts will show

profits,

in

,

The

to

of

page

drawals.

billion

Governor

the

of
by

totaling

an

funds to the United

ever

*

porate

proposals, which would
place the London Clearing House on a profit-making basis by
means of a
poundage charge, bring to light the curious fact that
when the Bank of England was nationalized nobody thought of
nationalizing the London Clearing House as well, and so the

all

that

was

merits,

negotiations has

to

.International

Outlook for Fiscal andCredit Policy

never

to end these

here

action

the

AmweU's

Lord

is

issues

billion

redeem

since

from first

still possible to carry out the original
admirable answer to inflation—as they

exactly happened

revealed, but it
proposals—which are

$1

the

Continued

international

of

types

been

as

simple

a

/.

Treasury to

vides

England can, by

1914.

hoard of gold coins being buried in Fort Knox.
It was to remedy this tragedy that the Bretton Woods pro¬
posals v/ere .formulated.
It was then recognized tnat goods and
services are the real trading currencies and that local coins and
local paper monies are merely local petty cash and the legal
tender only of the lands of the origin.
Accordingly a "Bancor" gold coin was to be adopted as the
Lew common language in which all people could trade multilite rally free from the handicap of exchange control and the
Babel of'currencies.
-

the

of

automatically

quire

money,

■

Bank

of the Exchequer from knocking his head against the same old
brick wall of "production for~export" and forging worthless
money,
which his predecessors have been doing almost

inflation are now rampant but the overseas
danger, This began with the triumph of the
Treasury over the City in 1914, followed by the abandonment of
in unilateral
trading .and tne subsequent debasement of world

to

the

individuals, substituting "good? money for "bad" in the ordinary
routine of the day's work, and preventing yet another Chancellor

effective

Dollar

species is the real

can

Governor of

all

of

from

the

to

ury

dollar

their

on

including

of

undertaken

change in the investment of the Exchange Equilization Fund, turn
the present war of bilateral trading between nations as nations
back
to
peaceful multilateral trading
between
individuals as

prior to the Paper Pound of 1914 the cornerstone
was the gold sovereign.
This, as it is not

In the years

of

money

on

special

billion,
sales

Summary

with "good

drain

Also,
the
supply
bills was increased

Treasury

circulate

gold-dollar circulating in the U. S. A. would complete the
picture. ■
'/.A
; -V'
4'vv-/ v/'V?

designed to replace bilateral trade and exchange

method

control with multilateral

the

meet

positions.

con-

A

A

Thursday, January 3, 1957

.

lightened their portfolios in order

can

decreased at will.

locally as worth two Bancors and thereby avoid deflation.

Ltd., London

House,

tax

a

or

Bancor

A

1

Chairman

essence

be increased

.

.

1956

that

prevailed

does not

With

seem

bank

particularly

earlier

in

liquidity

market

hanks,

acceptances

market

has

the

lowered,

the

among

govern-

"tone"

become

in

prospect.

a

money

of

factor

the
of

Number 5600

185

Volume

.

.

.

The Commercial and Financial Chronicle

increasing importance in
Reserve

operations.

authorities

the

Britain's

guard

the

of

Prospects for 1957

in

the

in

market

such

second

to step

view of

that

but

the cqqrse

also

Of

affect

conditions

of prices and'

production.
The

for

in

may

credit

less active and less ef¬

policy to

restraint.

fective

moment

shift

a

believe

Some

observers

business

the

Eng.—Britain's ecoclosely linked
with
the
international
political
situation. A forecast of the trend
LONDON,

nomic prospects are

is

boom

vin 1957 depends, therefore, on the

,

showing signs of tiring, and stress'7
that time is

credit

in
felt

required for

policy

view

itself

make

to

credit markets

in

change

a

in

and

the

ties

being

now

half

of

1957

eral

pattern

with
second

writing

a

reason

expressed

business

to

in

the
with

coincide

thought

of

gen¬

among

many

casters.

mism

downturn

expect
to

foresee

the

is

rise.

the

situation

the

an

suggest

not

does

con¬

easing of
current business

warrant

but

could

1957

of

course

ceivably

credit,

developments

economic

Thus,
in

The one
which agree¬

on

general is that costs and

will continue to

prices

Product

year.

however,

ment

sustained

a

National

Gross

throughout

point,

business

a

that

a

change in credit policy is
indicated at this time; with basic
basic

labor still short, an

materials and

credit policy would unques¬
tionably
be inflationary.
Deci¬
sions on credit policy can hardly
be made soundly and with assur¬
ance on the basis of prospects for
easy

production

prices,

ment some 6 to

employ¬

and

12 months distant.

decisive influence must
assigned to recent economic
developments, to the current con¬
ditions, and to the immediate out¬
Rather,

be

look;

that a basic
policy of continued

suggest

these

the

is about to beEinzig

Paul

gin,
t

it
President

ficulties,

to make dif-

such

the

basis

the

the

of

of

lessons

crisis, it now seems unlikely that Britain will feel justified in carrying out the projected
major cuts in defense expenditure
Suez

As

cost

not be easv

disinflationary policy is in existing conditions impracticable, bethe moment it tends to
really effective the Gov-

cause

become

Even

though

the Government's

policy is still to check
inflationary consumer demand,
there is no likelihood of the develdeclared

opment

of

through

excessive

a

business

The

measures.

in

.

to

Mackall Coe,

Goodwyn
Merger

Olds

which

down the pace of expansion. It has

Investment in factory

construction and equipment continues to increase, even if the rate
of its increase shows signs of slow-.
in8 down. The fact that building

WASHINGTON, D. C.-r-William
,,

...

.

..

-•

„

ish armed

strength in Germany or
In the absence of

in the Far East.

decisions, the
development

difficult

such

combined cost of the

production

nuclear weap-

of

busy for years ahead.
The question is, how a resumption of the boom,/ that is liable to
occur as soon as the oil shortage
is overcome, is likely to affect
sterling? The dollar facilities arranged by the Government with
the International Monetary Fund

a

not be pru¬

credit restraint would

Federal

the

when
lowed

the

until

see"

in bank loans
together with con¬

upsurge

March,

last

fol¬
policy

Reserve

and

"wait

a

in the economy,
brought forth added tightening.
tinuing strength

Central Republic
(Special to The Financial

111.

CHICAGO,

Adds

Chronicle)

Bernard

—

K.

has been added to the
of Central Republic Com¬

Hanley
staff

209 South La

pany,

of

members

the

Salle Street,
Stock

Midwest

Exchange.

to

BOSTON,
is

Lorenzo
P.

Rensis

De

&

members

Street,
Stock

Mass.
now

—

Carmen

affiliated

£aYe announced that agreement
W*

.

+

.

The

"i ding, 733 Fifteenth
new

Co.,

of

126

the

Di-

Boston

disinflation-

towards the
the economic
the Suez crisis.

from

r«\sul tin

the

the

uncertainty

political-outlook

before

Christmas, retailers reported
of

demand.

of

has already

Shortlv

reversed.

become

vival

arrangement

Jan.

became

1,

The

1957.

wnr<

a

re-

■*

,

Practical Disinflation Drive
the

for

Government's

measures,

disin-

instalment

t^e automobile industry

already been materially re-

laxed, in response to the warnings

by-leading members of that industry that, in'the absence of encouragement of domestic demand, au-

Exchange.

tomobile exnorts would inevitablv
decline

George P. Granbery
Granbery
passed
at the age of 81.
his retirement Mr. Gran¬

George
away

Dec.

Prior to

P.
23

bery was in the investment
ness
in New York.




busi¬

then comoel the authorities to

cost
fall

to
the rise in
unit resulting from the

owing

per

in

the

volume

of

production,

spectacular expansion of the
outout of t^e motor industry in

The

1954 and
causes

zations

University, entered the brokerage
business after eight years as an

F

The merger combines two local
firms that have had a long! and
Prominent role in Washington investment banking activities. Both
organizations^.a v e been well
kn°wn and highly regarded for
years, having participated
ln *-'ie

the

American

founded in 1933. In

result of

cated

Security

19~5

was one

of t^e main

of the scarcity of labor

and

June

8,

1956,

was

any

cheerfully

have

realized

the

They

Blood

of

The

importance

cutting costs by means of efficierrcy drives and, if necessary, by
n^eans of cutting profit margins.
The disinflationary drive has cer-

relations

public

and

advertising
activities.

During World War II, Mr. Barn¬
served

ston

as

with

Chaplain

a

the Marines and in the Navy.
Haas

three

saw

retiring

sea,

at

Lieutenant.

a

as

Mr.

service

years

Blair & Co., Inc. to Be
N. Y. S. E. Members
Blair

holds

Research
firm

of

Foundation..
Mackall

membership

Jan.

&

the

Incorporated,
York City,

Co.,

Street,

New

will

10

become

York

New

members

Stock

Officers of the firm

44
on

of

Exchange.
Joshua A.

are

Chairman of the Board;
Emmons Bryant, executive Vice-

Davis,

President, Secretary and Treas¬
urer;
Oliver De G. Vanderbilt,
3rd,
Executive
Vice-President;
Lester
Osterman,
Jr.,
the
Ex¬
change member, Herbert L. Hut-ner, Edwin A. Bueltman, George
E.
Nixdorf,
John
W.
Finley,
George Geyer, Richard G. Lowe,
Franklin Maroney, D. Finlay McFae, Donald E. Nichols, E. Curnmings Parker, Willis J. Richard¬
Charles

son,

H.

Truman,'

Robert

H.

Warren, John M. Whitbeck and
Ores
Ej
Zehr,
Vice-Presidents;
Gregor T. Goss, Ralph Jones, and

Stephen

C. Reynolds,
Vice-Presidents;

ant

Hughes

Jr., Assist¬

Joseph

F.

Richard. C.

and

Lawson,
Frank
J.
Harrigan and Robert J. Mackenzie,
Assistant

Secretaries;

Assistant

Treasurers; and Corne¬
O'Brien, Assistant Treas¬

G.

lius.

Cashier.

and

urer

co-founder

a

additions to costs were of the firm. In addition to serving
added to the selling on various boards of directors, he
price, has now given way 'to a devoted much of his life to charmore sensible attitude on the part itable activities and organized the

which

field.

executive, he supervised the firm's

Wall

.

was

as a

industrial

the

in

Upon joining Sutro & Co., in addi¬
tion to his duties as an account

:

measures.

flationary mentality,

clubs.

and

Haas, graduate of Stanford

Mr.

11

i

in

re-

to schools, fraternal organi¬

gram

part-

tv/t

w

WldJam W. Mackall,

sort to more drastic disinflationary Building,

of boards and managements.

have

admitted to gen¬
eral partnership Jan. 2.
were

*-v.

effective

addition to their regular underconsequmces
of
writing and brokerage business,
This latter influence is bound to
Changed Management Attitude
the firm negotiated the purchase
continue to operate for some time
The change of attitude of British of a number of local companies,
in 1957, owing to the curtailment industrial firms is to some extent including the Union Trust Comof oil supplies to industry and to
reassuring. They appear to have pany and the United Services
private motorists.
On the other heeded the warning implied in the Life Insurance Co. The late Wilhand. the f^ll in consumer demand
moderate setback of 1956. The in- fred L. Goodwyn, Jr., Who died

eredits in

with
State

rea-

a

and,

measures

flationary

Chronicle)

of

maintenance

close of the year, to

As

Joins P. De Rensis

the-

Government's

the

ary

For

(Special to The Financial

of

and

ons

conventional armaments at

Albert Haas, Jr.

Barnston,

firm,

executive

Yf' Mackall and i|Edson B. Olds

financing of Washington's
outstanding utility and industrial
sonably high level is bound, to and the Export-Import Bank have firms and in the distribution of
dent for the time being.
remain substantial.
provided adequate safeguards
securities of nationally known
It appears that the Federal Re¬
Absence of any drastic defense aSaiust speculative pressure.
But organiza ions.
serve
will await the development
cuts jii 1957 is"one of the rcssons jio concciV3blc smount of such fs—.
The p3itnGrship of IVTcickcill &
of
more
definite
trends
before
for
expecting that employment oilities would be sufficient if an Coe was founded in 1938 to con—
takingpositive
action
toward
and industrial activity in Britain - inflationary
rise in the cost of tinue the investment business
either
greater
credit
ease
or
will continue to
run
at a high- production were to outprice Brit- which was established by William
greater restraint. The presentsitlg\rpl
The moderate setback ex—
i^b goods fiom overseas markets. IV. IVTackull in 1930.
uation
may
thus be similar to
perienced in 1956 was largely due A balance of payments crisis would
Goodwyn & Olds, presently lothat of the early months of 1956,
from

shift

Alfred

ment

duce many firms to resist wages
demands even at the risk of
Mr.
Barnston
joined Sutro &
«fWk«s. ^ossiblv the realization of
Co. i" 1950 as a Registered Repre¬
this by the unions will make the
sentative after being in the Ana¬
latter jess uncompromising in their
Department
of
Carl M.
wages demands. If so, there would lytical
be every reason for Britain to Loeb, Rhoades & Co., New York.
In
addition
to
his
investment
expect 1957 to be a satisfactory
year
combining prosperity with duties, Mr. Barnston has been ac¬
tive in presenting the New York
stability,
Stock Exchange educational pro¬

disinflationary

extent

invest-

longest established

It seems probable that this easygoing and irresponsible attitude is

recession

spendings to their

drastic reduction of the Brit—

and

really effective

result of the rise

a

total of military

any

attitude confirms the widespread
a

Albert

and

the.

5^TA0;"^'„ CJf,rcles C- Alles of

the

a

fall

mawl for capital equipment in
level, unless some major 1957. British shipyards have ordecisions are taken, such ders in hand that will keep them

in

as

a

when

Wi ham C. Coe, Thomas L Anglin,
Robert L Soper of Mackall,& Coe
and Edson B Olds, J. Woodward

1957-58.

political

risk
time

a

operations by industrial firms conof armaments, it will tinued to expand during the third
even to keep down the
Quarter foreshadows continued de-

in

current

than

at

Street.

not be

difficulties.

On

rather

output

published,

may

give rise to major eco-

to

as

nomic

West's

economy. Yet the moment the mo- now a matter of the past.
Apart
tor industry began to show signs from the change of mentality that
of contraction the Government felt developed in 1956, the higher level
impelled to reverse its policy. This of inventories, too, is likely to in-

impression that

FRANCISCO,

Barnston

towards

crises

such

of

Calif.—Al¬
Haas,
Jr., account executives with Sutrd
& Co., 460 Montgomery Street, the

fred

en reached to consolidate
JnXes,jm5;
banking firms of
nm
rnn
°G rva
A0<rw^n
Ulcls- Jhe ^consolidated firm will
°$eif
under the name of Mack* Co,,®
o££'c,e® -1" "j®

are

extent

attitude

certainly not checked the expansion of capital expenditure by
manufacturing industry, judging
by the figures for the third quarter of 1956 which have just been

in

likely

the

the credit squeeze has in fact curtailed production has been negligible. All it has done is-to slow

crisis appears

Middle East,
boupd. to be periods of
tension in the international political field, but it does not seem to
be unreasonable to hope that the
be

to

There

also

the

major

no

even

hough

that

probable

seems

and

Nasser will continue

the British

measures.

of

sterling

whole output was easily marketahle at increased prices.

ernment is bound to yield to pressure
in favor of relaxing its

the Suez Canal

fore¬
not
all

develop sometime in

many

in

rise

tures,

The.,

respect.

economic

on

and

course

demands. In the past em¬
were inclined to give way
easily, in order to avoid strikes
or go-slow tactics.
They preferred
to add the higher wages to
the
selling prices of their manufac¬

this

opti-

in

clearance

concern

Furthermore,

economists

1957;

evoked

for

guarded

that has

throughout the postwar
decade; similar doubts were raised
a
year
ago,
when
cutbacks in
residential building and in auto¬
sales

there
be

to

appears

persisted

mobile

politi-

outlook,

At the time of

that some of the uncertain¬

ever,

regard

the

on

cal

It must be noted, how¬

economy.

take

we

Sutro Co. Partners
SAN

too

of the inflationary boom, and a
curtailment of that expansion was
considered essential in order to
relieve the overload

1

ployers

being

now

the

whether

arrived

have

is

Barnston, Haas, Jr.

wages

.

.

*

question

raised

affects

disinflationary policy
.
.
[under]
is impractical; (3) disinflationary
drive has produced a salutary effect on management. Possi¬
bility of a boom occurring as soon as oil shortage is overcome
with resulting adverse balance of payment effects is advanced
by Dr. Einzig.
.

its

Fortunately the change of man¬
agerial mentality referred to above

high level;

a

Inflation would then

pen.

would become vulnerable.

(1) employment, industrial

effective

"really

(2)

existing conditions

interna¬

may

not only money market

why:

activity and demapd for capital will continue at

point of

the

after explaining

the

resume

decreased world tensions and re¬
claims, is perceived by outstanding British

wage

economist

funds

more

of

stability, assuming

strained

mu|t be alert

in

changes
situation

tional

Federal

general credit policy.

to

with

claims, and if these

effect of the latter's economy drive
would be wiped out with a stroke

satisfactory 1957 outlook for Britain, combining prosperity

necessary

the

from

credit policy

course,

also

it

in and provide

desirable

than

A

1953;

of

the

find

might

2X

employers, then all the beneficial

By PAUL EJNZIG

near-

developed

quarter

situation,

a

Reserve

that

full

claims should be conceded by the

demoralization in the government

securities

their

on

Federal

Assuredly

wish "tb"

repetition

against

(21)

'

'

Coe

New

yCrk Stock Exchange, the Philadelphia-Baltimore Stock Exchangeand an associate membership in
the American Stock Exchange,

'

Be Formed: NYSE Firm
Madison

&

the

in

Madison Investors to

formed

on

Investors,
Jan.

10.

Inc.

will be

Officers of the

firm, which will be

new

a

member

of the New York Stock

Exchange,
Propp,
President;
Gordon, who will hold

Ephraim

are

Baron

J.

tainlv pioduced a salutary effect
on
management side of in- with a direct wire to their corredustry.
spondent, Clark, Dodge & Co. in

the

It remains to be seen whether New York,
the trade unions, too. have heeded

dent

the lessons of the disinflationary

With Hornblower & Weeks

experience of 1956.
ing

unions

earlv

in

will

1957

Several lead-

have

whether

to

to

decide
press

their excessive wages claims or to

If

they

GRANVILLE,

O.

—

Charles

G.

Gaddis has become associated with

&

q0^

President
Herbert

and

and

Rj

Vice-

Secretary,

Behrens,

and
Vice-Presi¬

Treasurer.

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

bv r'«m^«^-T!,v,<,r)nes
should insist East Broadway.

accept the modest offers made

employers.

With Remmele Johannes

membership,

exchange

^3

DETROIT,
Johnson

is

Hornblower

Building.

Mich. —Donald
now

&

affilia+ed

Weeks,

K.

with

Peiiobscofc

22

(221

The Commercial and Financial Chronicle

The

Social

Insecurity

record

tempts

pitfalls and limits to social security

The

pump-priming

Sonneberg, who decries plunging deeper into
involving

program

unknown

and

mushrooming

costs

opposite direction from obtaining "real security."

Brookings Institution's observation of the
social

security system, and

warns

—

Writer cites
of our

and

gold,

taxes

ulated

trend

our

full

time

one

star

a

out

toward Statism.

is

1
or

rates

planned.

seldom

Where

allowing,

even

;n

/

.

.

.

in judgment in encouraging,

eri?or

the

rapid

position

debt,

security does the Social Security program really offer?
liberalization—in-

Would ,further

eluding

consider

the

1955.

com-

limit

age

at

lower

a

higher

and

subtract

notice

suspicion

insurance

for

ahead

im¬

plicated

and

moral

>

„

values, the program is by
defeating its purpose. A

pensioner, who
took a job with a broker after retirement, told the writer he expec ted with his pension, social seci'rity, and present salary, to draw
retired

recently

about $600

month.

a

Sweeping liberalization of Social
benefits

politically ineconomically engineered

Security
stead

of

—brings

of

"sturdy, independent spirit from

which
Not

derive

we

reputation,

our

only do the proposals threaten
solvency of the security pro.-

the

Poor

Security

Social

Politicians

Advice

primarily conabout
the
vote-getting
and professional econ-

cerned

aspects,

are

omists seldom agree on the prem-

is'es.
left

the problem of security is

so

the lap of business leader-

on

ship "responsible for the

preserva-

tioii of American free

enterprise."
however, many

Unfortunately,
business

leaders

ested in the

are

inter-

more

solvency of their busi-

ness—the

problems of taxes, debt
profits—than in the future of
the social security program. Which
puts the issue in the hands of tne
and

people, who, unless correctly and
fully informed, cannot make wise
decisions.

>

;

The delusion of "union panacea
of

ever
higher wages to create
purchasing
power"
appeals
to
many.
How does one adequately

demonstrate

the

futility

of social

security liberalization, based 011
purchasing power fallacies, unless
oue

can

liberali-

the

for

the

burden

1940-52

expectancy at age
12.5:%
a

for women,

call

for

an

spread the record for all

downward age
ing benefits.;
Plunging

Federal

into

in-

program

a

volving unknown and mushrooming costs merely because of voter

preoccupation with
in disregard of

favors

generates

use
of purchasing
"built-in"" inflation

climate in which

a

approaches

obligations and
bill for future

of

This

ordinarily

as

who beats

a

tom-tom

to

the

tune

of millions qf dollars for unworthy
wares.

Real security lies in getting an
now geared to governspending and inflationary

influences away from its precarious affiliations, into the realm
of honest thinking and reasonable

action.
In

'

■

response

to

New

Deal

losophy, liberalization of
security has already given

Social Security

rity program it should be patent
to any one reviewing all the circumstances
Oi

putting

skids

by

security

that

real

trying
cover

we

are

by

secuntv

too

on

make

to

mucn

j^//kshould,:)1

individuals

themselves.




way

ground,

assume

for

will

finds itself paying dearly for the
welfare state. Every worker shells

out about one-fourth of his income
in taxes. Who pays "for the welfare state is beginning to percolate

phitaste

the

to

opened wider it was thought
old-age assistance would decline. "But it has been increasing
the

since."

The number of those

receiving benefits increased

from

PHILADELPHIA, Pa.

vs. Premiums

another

or

of

that

disability

bear

alone

its

get

share

diversions

Agencies

the

so

of

from

high

Loveman

has

47

and
in

that

he

that

has

been

position

succeeded

by

Harley L.
Rankin,, heretofore
Manager of
the
Securities
Department. The
firm's local offices are located in
the Philadelphia National Bank
Building
Rpnirin

Mr

hue

Kr«

J of
%

office

tv

r

iu

^

Goldman,

1949.

blame

must

for

the

the

ap-

historians

(Special to The Financial Chronicle)

present

become

associated

Co., 53 State Street,

members of the Boston Stock Excban§ewas formerly with
Coburn & Middlebrook, Inc.
.

^

from

tions

13.1

Reserve

Bulletins,"

study

a

haye fallen 19%. The bonds

sold

by the banks have, directly or indirectly, found their way into the
hands of the general
public, Federal Agencies, and State and local

ment's

own

agencies,

other

categories

bought

pass

this

state

which

have

balance.

on

and

presumably

,

local

hold

governments

U.

S.

securities

and

purposes

a

temporary deposit for funds
through the sale of bond
issues, pending actual investment
in
the projects for which the

raised

has

money

been

raised.

these governments

Since

plagued by

are

constantly rising costs of their own
and sharply higher interest rate
they must pay for new money
(higher than government rates in
many

instances)

looked

to

as

they

substantial

a

be

cannot

long-

term buyer of government securities on balance.
Shift

Out

With

the

of

core

that

assume

1955

of

of

the

problem.

the

since

individuals

Let

us

beginning

have

cashed

.

substantially

all

the

.

billion

balance- Assuming that $1.5 bil—
^on of the 2.9 billion decline in;

worth

bought

billion
of government marketable

jt
securites on

$4

baianrp
balance.

>

Questionable how

course, no risk
to

maturity;

success-

year issue

has

In
o

principal held

in

but

typical

a

5-10-

(2%% of June, 19o9-62)
6% points since the

dropped

beginning of 1955; a typical mer
dium-term (2V2% June, 1962-67)
8i/2

points; the "Victories"
1967-72)

10%

Mo

Mitrholl

C

A.

North

G.

Edwards

Brentwood

&

Sons,

Boulevard.

30

points.

(2V2%

points,

and

1955 71/2

Clearlv the advantages of
.

hlSher yie!ds

via

.

^arketablhty

will not be immediately apparent
to

the

investor

who

has

investing

as

possible"

the contrary, to point out

on

-3

balance,
the

cause

at

least

yields

governments

in

bonds

cashing.their holdings heavily

on

on

in

part

be¬

marketable

on

run

comparison

2.5%

high

as

3.6%

3%

as

or

even

v/ith

nonmarketable

govern-

tiiTue^to'"increase
present

trends

unreasonable

decline

forward

to

in

it

expect

is

not

contin

a

mar"

the

price of
ketable government issues
(4)'It
is unreasonable
however' to expect the public-to buv these marketable issues when'past experihas been

ence

expectations

they
ter

so

and future

poor

are

better

no

now appear

than

No investor

af-

fixed' 35-

all, is going to buy

securities if he is convinced

come

he may

lose
principal as

much

as

he

or

in

more

receive*'iri

will

income.
Yet the fact remains that
on

yields

nonmarketable government

curities

are

far

now

out

se-

of

line
with those to which
money is nqw
entitled as a result of
rising inter¬
rates.

Those who bought

bonds

for

patriotic

sav¬

reasons

during World War II have already
half their principal

seen

destroyed
Now, because of the
change in interest rates, we Xllcl>y
may
by inflation.

be a'bout
to
see
a
repetition of
what happened in the
1920's, when

investors

lost

10%

liquidated

government

*s assigoable to their
action, "
then """ must conclude that
we
A

individuals

by
as

vv^

$5.2

nonil">ai*hetable savings bonds and
notes presented for redemption on

the long 3's of February,

Grand has been added to the staff
of

to

come

capital

lhat (i) holders of savings

ings
we

2.4

This is not meant to be facetious

est

Governments?

individuals

(Special to the financial chronicle)

CLAYTON

his

ued

for working capital
as

we

to consider the nature of the

over

1.9

+

conservatively

S,r,esuJ g demands lor credit and but,

P?®.™1 Rfel've stringency, bank
government securities

+

January and November,

of

as

holdings of

2.1

—

16.3

.

They show that

0.7

—

16.0

______

interesting reflec-

be gleaned from

can

.

2.5

+

19.3

"Federal

o£ these tables.

,.

+■: 5.0

67.0

I_.

number, of

Sept.,

_

A. G. Edwards Adds

spending,

I™1,11 creatinS its own market^,
accounts for the
wave.

_

has

Sidekas

industrial system's -activi-

largely

1

__

ful this investment has proved.
short-term securities there is

BOSTON, Mass. —Raymond B

demonstrate

war

*l)ata

'

with Keller &

romance

_

.

Keller Adds to Staff

the

some-

_

^_____

Governments
Miscellaneous

re-

with the firm

years

_

State-Local

A

0.5

—

54.5

_

Companies-_________

Insurance

—11.3

23.9

.

costs

that

to do

reality,

impetus of

prosperity

Ingividuals

Corporations

Gold-

as Resident Manager
of its
Philadelphia office after an asso-

plication of inept financial devices.

not

—

™

to

big" money

that the

S.

tired

the

thing to finance disability.
The

Herbert

Sachs & Co. since

in

citizen."

1.3

Change
-Nov., '5S

Jan.,

8.3

Reserve

Federal

Sachs & Co., has announced

man,

Philadelphia

^

Receipts

ordinary

Rankin Phila. Mgr.
For Goldman, Sachs

ciation of

...the Economic

social

•

of an asset, therefore, the
trust fund turns into an interestbearing liability. Socialist Sweden

that

Government will have

secu-

by

•

puts its own IO.U's—government.
bonds—into the reserve fund. In-

snowballing effect. An investigator found that the Old-Age
Assistance program, financed

matter

condemning the pattern

the purpose of the social

plagued
•

social
a

of its

threaten
Without

arc

we

that
lllal

(First National City Bank.)

pretext

or

as

down

not

to

Dollars

World"—remarked
llalKCU

economy,

not

Limits

"Will

—

enter¬

merit

a

that the government has
dollar to spend that it does
take from somebody else.

free

stead

sensible
obvious

for

man who makes a better mousetrap having the public beat a path
to his door has been superseded
bv the promoter and advertiser

fact

the

the

long

So many are crowding under
the
security
umbrella
on
one

despite

sale

Henry Hazlitt
Save

780,000 in 1946 to 6.000,000 in 1955

men.

of

0.9

—

$57.4

Savings Banks-

Federal.

Americans, includ¬

dig security's grave. In the matter
of banking social security funds
it has been publicly stated taht
in place of cash, the Government

ever

the

Mutual

Americans

easements,
monetary
manipulations—temporarily relieving embarrassments
without
achieving
sound principles for keeping the
system going on its own motive
power.
The old saw about the

collected

through taxes, challenges
judgment and overrides the

bill

a

1__ $168,3

*

1.3

—

November, ] !*,">(;

prohibitive tax

a

1.9

+

110

Commercial Banks___

subversive
financial
involve mushrooming

fals^ theones

fiction takes precedence over fact,
The magic of government money,

prudence

of

Along with the techwe
be plagued
uical know-how we have not yet "Y laJse remedies.
acquired a method for making
Summarizing
the
$12
billion
these vast productions
finance farm subsidy program, an observer
themselves, make their own mar- called Jhe mess "a grim example
prosperous.

was

and

generations

.

and

source

future

0.1

+
—

20.8

_

Issues

1

un-

financially reckless."
They demonstrated that it saddles

appeal does not commend itself to
prise.
friends of. progress."

the

power

"thoroughly

as

and

ing

power

This

system

sound

artificially

_

]:

—7A

Ownership of Government Securities
(Billion Dollars)0

a

Govern-,

_

"

claims'and habitual chiselers, and

the

deeper

ment

instead of

purchasing

see?

Marketable

final analysis a too ambitious
revision in assign- coverage, together with fraudulent

upward

largely by the Federal Government, grew beyond expectations,
As the social security "umbrella"

to

rity

Issues

3.8

+

54.6
___

Convertible

'

$81.9

.__

Notes and Certificates.______
Bills

Wlth a tremendous commitment
65 for men and
benefit payments in addition
thus indicating 1° °ther costs of government,

the

open

radical departure from

involving

proposed

cited

He

of

ncial

n a

t

$103.4

___!

52

-

46.1

Bonds

Aug., '36

2.9

—

•

$57.3

--------

1.

big

advised

Committee

$275.6

.__

Non-Marketable Issues___.

program is a poor substitute for
an industrial setup calculated to

Jan.,

'•

Savings Bonds and Notes,

A few years ago the Brookings
the Institution tagged the social secu-

the

A reversal of approach to security is definitely indicated if we
proposals' want to keep enterprise free and

the

features

ill-advised

the

—

into

out

tax

is today.and."as. it has
the
beginning of
''A'•

since

■

t.

'■•

Secial Issues

period the increase of 7.4% in life

of

way

through

zation.

Sonneberg

eco¬

nomic

Walter

f.i

of

one

companies

trcmendous

due considera-

for

Finance

Senate

ter¬

ritory, without
tion

future

"A

on

Spokesman

cover

much

need.

Debt____
\..r

#

technology."

that by under¬
too

on

the

Government

-Change-

As a result of these combined
circumstances the social security

river.

burden

taking to

a

endanger

onfirmed

a

there is
imposed

S.

August. !!>.■»<»

Total

provide security without recourse
to artificial
respiration.
Peter
Drucker in "the New Society"
noted how we have the technical
leadership, "but have not developed the social and political instifutions to go with this new

possible

re¬

case

mv

that

increases

the peopje that might
public support of the
system we are trying to uphold."
Also, a tax on character by. selling
rugged
individualism down the

or

from

cently coming
e

warned
tax

to

people to finance social seciirity
programs
featuring
every

security?

to

Folsom
the

bene¬

fits—add to

A

liberalization proposals. Secretary

U.

of

(Billion Dollars)"

is

Ja^s becomes ,only relatively el-

-

.

distribution

pan

there

This was recently emphasized
in Congressional hearings on. the fective.

limit

people

more
-

-

it

as

changed
first

us

plenty wild money, around raising
How much

and

outstanding

rise

rates*>*

monev

Let

losing favor; manip¬

interest

as

Thursday, January 3, 13^7

.

The Swoid of Damoclesf?^

is

audi-

.

Continued from page 3

Once

now

dwindling

a

at

farce,

house,

performer, does not get much attention today; cheap money and
inflation
accompanied
by
debt

the

consequences

that it adds to

by

ence;

government

a

a

applauded

probed by Mr.

are

at-

to

played* to
The

successive

keep
the
prosperity
waving is revealing.

wave

By WALTER SON NEB ERG

of

.

What
T,.

50%

of their

bonds,

Would

Treasury Do?

„

„

one can foresee the possibility

f

a mas«ve withdrawa from savings bonds by individuals, the next
question to be considered is how
(he

government

sib,e

s25.s30

than

raise

can

bjllion

a

pos-

0'ther

from

public investors without

re-

sorting to the most direct and violent inflationary measures,
This,"

in

opinion,

my

Achilles' Heel in the
ernment

its

fiscal

logical

shambles

policy.

conclusion
of

every

is

armor

the

of gov¬

Carried
it

makes

"normal"

to
a

eco-

nomic theory, including the
dogma

tbat the Federal Reserve

exerts

beneficent control

the

tion

s
.

business.
lJUO,

If

has been correct,
clude that the

over
my

one

a

na¬

reasoning
must

con-

policy of credit restraint via higher interest rates is

185

Volume

Number 5600

.

The Commercial and Financial Chronicle

.

.

(23)

'fraught with serious inflationary
implications because $67 ■ billion
of the government debt is held

Continued

than the

Securities Salesman's Corner

Tight Money—Cause and Effect,
And Outlook foi Money Rates

billion is redeemable at the option
of the individual holder.

No less urgefif

6

page

by

individuals, of which amount $57.3

ment's

from,

govern¬

problem is the question of

demption^ wuTbe8 retake/If I30"158

By JOHN BUTTON

Many

loan P°lle>'-

There

Nation increasing,

believe that in the 1920's much of

Impact on the Bond Market:
As government bonds have again

the

broken

are

1956

the

some

the

spective

are

market.

is

good
into

went

money

to

reason

common

stocks.

prices

from

are

that

Aside from

dec'hne

inherent

in

the

such

an

of action which may

course

self

have

dynamic

a

future stock
Much

bought

The

as-

on

June

level

government securities

than

the

temporary

permanent

nature

of

ket, sincev with
ion

itures:

bond

hooves

the

the

urfth

hie

fair"return*
:
reiurn

marked

he be

can

it

so

reduce

oil

or

banks;

but

credit

that

now

well

as

cost

that

Tight

consider

has

money

also

to

agencies

Tf

postpone,

ing

that

pffnvt

is

he

prepared

contingency

of

stock

and

prices

to

face

sharply

vestment media

high

are

the

higher

scarcity

of

flight from

savings bonds?

sold

a

iomnnrarv

with

{hat

effect

more

judgment has been mistaken?

money

ago

most

obvious

are

risks

in

construction" loans

al¬

kind of investment

any

it

than

tions,

but

under today s condithe greatest losses are

tn

afford

/"► r\

n

v

-

-

4V*

»-v-\

v.1 M-r.

^

--

"

that

was

banks

is the

inevitable

if

insist

it to

a

double

j

•

ii_

.

i. _;

•

_

•

sure

is

It

year

_

"P.

bond

go\ ernment

is

and

from
.the

serious mistake which

lifted only

ttT

by

be

can

inflationary

rec-

meas-

ol

both

on

old

and

already

has

had

the

relieve

have

which

help

solve

MENT

the

20%.

This,

in turn,

the

thorities

is

WJVJ.

the current

persist

whirh

tStf
burst,

md\

arf

well

(Rc

It

for

,

not

likely

re¬

as

xwmwws

will

the

may

money

even

The sale of

dictions made by some automobile

executives for thg 1957 modelwill
be realized.
-

Official Appointments

Con-

inevitably

money

Company.

South

Broad

Pa

Stroud

Incorporated.
Street,

announced

election of Theodore

feldt

fistant

E.

Vice-President in

as

f qgIac
01 saies,

p

r

123

Eck-

doned

\n

j-jad

ers

4

charge
v

reiix

.

L. Maguire as As-r

Vice-President

in

charge

of dealers activities: and Richard
O. Smith

Assistant Vice-Preri-

as

the

planning

stage

loans

DETROIT,
Jan.

1

Hague,

the

firm

Noble

Building,
York

Mich.

•

&

name

Co..

members

and

—

of

ther'

increases
of

of

-

of

Smith,

Penobscot
the

New

Detroit.. Stock

Ex-

-

their

expected,

such
Can

concerns

Be

Done

is rising.
About

the

what

can

be

done

reduce

reserve requirements
are
very high historically
comparatively, or they could

which

Hague & Co.

oasis

reserves on a

through

consequential

open market opera-

•

.

as

Services

-t

■

I

>

...

as

Offered

the

on

stock

an

ad-

market

capital
expenditures,
developments. w i 11 cercause
a
reappraisal
of
public,
corporate
and' private
spending.

this form is kept throughout the
year by the investor,
printed on durable stock the message of the firm is con¬
before him. The services offered in Listed Stocks and

A

serviceable

and

practical

keeping with good taste, and it
who

are

very

form

such

this

as

is

in

be freely offered to investors

much interested in

track of their investments. The

McCarthy who for
<

record

can

many

a simplified method of
keeping
McCarthy firm is headed by Griffin

years was

an

executive officer of

of

one

the largest

merchandising and retailing organizations in this coun¬
His long and successful experience as an investor and his

try.

background of "know-how" in advertising, in this instance proves
practical idea that is helpful to your clients that is
appreciated, and you don't need a leather binding and gold leaf on
the cover to make a record form acceptable and valuable.
that it. is the

-

on

These

Once

the

boom

trend

in" busi-

activity
and
the
upward
trend in prices come to an end,
money will be easy again. To the

ness

flowing from

ease

these

basic factors will

eral

ease

of

Reserve

then,

The monetary'authorities could

supply

effect

further

the tight money?

changes, will be changedtc Smith,

Also, tight money, sooner

tainlv

in

about

.7
'
• '7'"
•"* .*
■■
"
Page* Four Lists the Firm's Aims and Objectives

the form.

oc-

particularly
will be re-

works,

construction,

and

costs.
As
the failure

be-

perma-

later, is bound to have

verse

bor-

Tight Money?
Well.

ana




be

or

very

In fact, their

7

Bonds, Unlisted Issues, Tax-Free Bonds, Investing Companies,
Special Inquiries, and New Issues, and its policies pertaining
thereto, are concisely and clearly set forth on the back page of

where build-

commitments for

public

it

in general/have
\yeen reduced.
Many have even
been forced
to
resort
to
higher
rate non-bank lenders, which fur-

What

Effective

have in-

,

stantly

could

ha§

cline further, and that the volume

their

lines of credit,"

rate

To- Be Smith, Hague Co.

find

they

increase

to

rowing at the banks.

might

dent.

concerns

costs;

difficult

■'

and it is

^mortgages. It 'follows that
housing starts are bound to de-

school

creased

or

dear that the

n en

duced.

Although such

y

71

Since

bits the smaller and marginal

conharder than the larger ones,

photo-offset,

sample of the Record

.

4,

Well

pressure ol light money will bring
the boom to an end sooner than

cerns

PHILADELPHIA.
and

the

Tight

cerns:

Smaller

the

reduced

thereof.

.

7

go

level

present

=

f...

cover

done in

lor totals.

high in the immedi-

they

7

much

a

was

security profits, and the final column 011 the page is
This form is printed on
fairly heavy buff-colored paper
and the front page (it folds into four
pages letterhead size) carries
a short
explanatory message from the firm. <
•

mcit

ate

affected;;

letter, which

security; Column 3, rate of return (dividend or interest);
date bought and sold; Column 5, certificate number;
6, cost price; Column 7, selling price; Column 8, profit';
Column 9, loss; in Columns 10
through 22 the months are listed from
January through December for recording dividend and interest
payments received; Column 23 is available for recording stock

remain

tight. In fact, not only will

cases

on

'INVEST-.

your

of

dividends

it

market

This

Impact

of

Column

•

-

_

'uct-ion

Stroud & Co., Inc.

copies

;___

side of this

a reproduction ©f
Form, and also the ontslae

Column

as

pressures
conseouential

no

_

money

reverse

carried

name

au¬

long

so

inflationary

and

'

future,
than?; higher than

more

durable goods.

(two)

me that they wish to
simplify their
keeping and therefore they find most prepared forms too
complicated. The McCarthy Record Form has a place for every¬
thing all on one page. Column 1, Number of shares; Column 2,

Impact on the Sale of Durable was expected a few weeks ago.
Goods: Tight money is having an Already a considerable volume of
thZ
the adVerse eflect on xht sale of con- j^w construction has been abansinner

(one)

RECORD'."

record

buried

u!rri fm?tn^hp
out to be

have

me

PORTFOLIO

The Form Is Very Simple Yet Complete

SflfrKt anr^Jlipr^ft
well turn

Ave., Miami 38, Fla.

Address

Money and

i*ates remain

starts,

Tto°- PartlcuIarl-v ,umber-.

tries

let

Many investors have told

relaxation in the credit

a

.

circZZLZatheeco— ,he. ,bu,Udiftg, m?terials lndustry ■

stocksOf

V/;

truly,

very

McCarthy—investment Securities,

The

would Supply

straint. policies of the Reserve

„

houses.

has

of these

one

2 forms, so as to use one of them to
figures for this year, you have only to ask for 2.

a

effect,
as
*<=
«<
upward pres-

Credit

conserv-

home

dropped

11", folding

x

would- like

your

"Please

economy.

As

serious effect

a

of

you

"8340 N. E. 2nd

^

8 ^

prices and

on

ago.

longer

..

new

number

If

S.

"Griffin

1

can

The Outlook

the sale and value

on

17"

spiral.

lusmnsu-ia it; njy.u iu..c,

effect

verse

it is

forms, without obligation, put
name and address on the coupon below and
bring it or mail
our office.
The form is offered as a
helpful service with our

gather up

-——

market

going to collapse, but it. is my
strong conviction that the monelary
authorities
ha\e
made
a

In actual size

this letterhead.

You're very welcome."

w..

the

as

,

increasing
to

a

compliments.

obtain

no

they have become quite

size

Yours

by

beneficial

would

have
practically
buying mortgages; 6and

stopped
■

supplied copies of

liv¬

means!

help

can

your

we

on

'

simplicity itself.

"If you would like

inflation that

we

our

same

ital markets by spending less and

mortgage

are

such de¬

many

simple form for keeping a record of interest and dividends through
the ensuing year.
"Many people have complimented us by telling us that it was
very helpful and easy to use.
A reduced fac-simile is shown om
to the

need.

we

such

to

and

seen

SIMPLE, HELPFUL FORM: YOURS FOR THE ASKING."

could

thing that

one

form

the other side of this letter.

It would
we

ven" savin- more*,.This would have

they

gages;

.

taken

lilrrilxr

25,
savings
basis,

is

interested in "warehousing'" morfc-

po<

sition

them.

all

I

sound

on

estate.

difficult

Commercial
There

real

on

I have

"Last December this office
prepared and

Nov.

on

a

fprm

'

If he

keeping.

Text of Letter Sent to Clients and
Prospects
"A

and

borrow-

.

months

record

McCarthy firm has made

Impact on Real Estate: Tight the capital for a sound non-inflamoney bas naturally had an ad- tionary expansion of our facilities
much

18

or

for investment

their record

Obviously, a
consequential reduction in prices

.

a

verse

year

on

glvlng

on

has^ome to our attention ■)
by Griffin McCarthy, investment dealer of Miami. ;

imbalance in the money and cap.*.»*«..v. s.„K-

chnrt

such

1^h^rnoses
idiffiJult: adverse^nressure

and bought Treasury bonds is
lie willing to admit that so far his

stocks

afford

Labor

the

banks to finance capital needs

m-

in the event of

ex-

repre¬

ecuder^'ot"?eiwlePFbdut<7"*and impetus
Z
turther

navim?

Some

some of them elaborately developed, in
ring binders and iwhat have you, but the
objection of most investors to most of them,
is that the^ are too
complicated. The

expend¬

do not have the

® ^ °f
Individuals

receiv-

prices

form

Investment

Association

ing beyond

1 educe,

on

avoid

in

the

prevailtn^'high Ses" ifSc lonS WOuM ^ the

they will not

decb£e will be
effect he inPrice enough

If he thinks stock
now,

is

instances, such borrowers,

many
■

return Ion his investment?

no

told

we

cannot

caused

has'beeii

his'monev^^Tf^he
ms money,
it ne

on

very

hospitals

should forego

not

clients.

1

pads,

way

agen-

government

a

Moreover, the

a

a

sure

in

is

around

memo

inexpensive method of building goodwill but the
this firm has used the idea of offering a "Record Form" to its "
friends4 and clients is most practical;
It also combines a tactful *
reminder of the firm's policies and services with a
usabje simple :

is

money

works

not be the first time that

availability

the

as

expense

clients

One of the most practical ideas that

»

ex¬

a

public

roads,

as

finance them

we

corpora-

t°
so

but il

not

was

the

as

for

Bankers

to

considerable

for their

It is not only an

the

and

public

sentative

postpone

effect

long

of

schools,

thus, will have
effect on capital ex¬

to

gone

vices,

Corporations

itures

cor¬

corpo¬

and,

This
•

Expend¬

be¬

to

retire

to

cies could trim their capital

tions could obtain credit from the
of

and

ponitd

on

..

Capital

have caused

have

rememberance

Others have sent inexpensive

and there has *
certain amount of goodwill value established.

has been created

market.
;

some

year.

a

Sur-

If this

on

doubt

no

pro-

increasing

effect

«-iLh^ldf their'public ^SF^STvi ^
is he receiving
wage—price

bonds

savings

to

issues

penditures.

mar-

Answer

investor

favorable

been

of

the

penditures, it should have

problem, the pressure on capital
expenditures will increase.

circumstances

tarcf"lly'what heTs

of

of

secure

the

year

amount

instead

reflects the

higher rates

adverse

an

a

Questions to

like

a

and

calendar

^-bank-heJd debt.
done

(debts

year

on

The

rations

will become sellers of bonds.

Under the

ratio

billion

the

use

surplus

to

turn of

calendars, etc., to friends and prospects as well as
of this gift
advertising may have been worthwhile

corporate

on

bonds

porate

change of opinprices these buyers

stock

on

the

-

could

year

1957

of

billion

rather

support thus given the bond

this

of

Impact

being, owing to the high
stock
prices.
One must

of

emphasize

30

pressure

safer than stocks, at least for

the time

in

drop

liabilities

$6

plus

.

government

calendar

the

liquidity— penditures to fit our ability to
and, of course, it has undoubtedly' finance them on a non-inflation¬
We may need $200
chopped still further since then, ary basis.

billion worth of

(as shown above) clearly resulted
from their judgment-that bonds
were

'

payable
within one year or less) from 91%
on
june 30^ 1946 to
only 48%/011

balance by individuals

on

on
■

Corporate .Liquidity:

„„

sharp

current

in it¬

effect

years,

The

'

cash and government securities to

a

prices.

of the $4

marketable

Impact

logical

sumption, this belief has led to

tax-exempts

impact of tight money
bond market is obvious.

stock

likely to

more

than rise.

fallacy

this

and

at the lowest level in 17

Today many investors believe the stock market is high and

delude

90,

investment firms

and effort

adopt a more cautious tions. But .neither is likely with
>?,rl,c.es r.,slnS al.ld the threat 01 ln"

not put back in the. bond

they

23

rates

to

is

the

the

a

be

future

rate

added the

reversal

policy.
of

changes
in Fed-

The
of

key,

interest

business

ac¬

tivity and the behavior of prices.
By

watching

lore warned

-

is forearmed.

them,

you

can

be

and', forewarned

El Salvador Extends

^

1976, and to pay certificates of de¬
interest (scrip certificates)

ferred

in

Offer to Jan. 1,1958
Holders

of

Republic of El Sal¬
vador Customs first lien 8% sink¬

ing fund gold bonds, series A, due

cash

amount,
been
to

at

15%

may

extended

Jan.

be

of

their

face

has

accepted,

from

Jan.

1,

1.957

1, 1958.

The period for

exchange of

July 1,1948: 7% sinking fund gold

vertible certificates for 3%

bonds, series C, due July 1, 1957;

nal

and certificate's of deferred

con¬

the

inter¬

est

sinking fund

amount

being notified that the time within

from July

bonds
pons

and

the

exchange these

appurtenant

cou¬

for Republic of El Salvador

4%, 3Vz% and 3%

external

sink¬

ing fund 'dollar bonds, due Jan. 1,

dollar bonds

of

Republic,' due Jan. 1, 1976,%n
multiples
of
$100
principal

(scrip certificates) issued with
respect to bonds of series C, are
which the offer to

exter¬

has

also

been

extended

1, 1958 to July 1, 1959.

Copies of the exchange offers may
be

obtained

front

The

First

Na¬

tional City Bank of New York. 2
Wall

Street, New York, N. Y.

24

The Commercial and Financial Chronicle

(24)

first

Continued, from

To be sure, we can

page

by asking at

|As We See It
uMer "high pressure." Certainly the politicians,
"with hardly an exception, are much disposed to do all
they can to keep business going forward under forced
draft, even if they all too often insist upon policies and
programs which should have and should be permitted to
•have quite opposite effects.
-

that

;

and all events

of the former

Chairman

we

Council

of

our

be cured

or

current difficulties.

are

k$uch

at least ameliorated either

a

as

Of course,

-—

at least

so

far

go—been subject to periodic seizures of exu¬
too often to be followed by states of mind
which go far in the other direction. This and accompany¬
ing variations in activity are now called the business
cycle. The so-called full employment act was brought into
being with the rather naive idea of abolishing the busi¬
ness cycle.
Without much doubt the authors of this meas¬
ure
conceived of their task as being that of keeping
business always moving ahead and never lagging except
for very brief periods of time and not very much at that.
Many of them were caught up in the psychology of New
Deal dreamers who, after abandoning their earlier thesis
of a "mature economy," had begun to build castles in the
air involving limitless economic millennia in which coritinous expansion was the key.
all

berance

,

Even if such

projects

there

matter—had other incentives too,
defended arid doubtless in part

they were and are often
inspired by this same
notion of keeping the economy always in a fever of ex¬
pansion. Agricultural largesse has its own political re¬
ward, or so the politicians believe, but it too is often
defended on the ground that it tends to
keep the economy
moving at top speed. In this and a number of other ways
now

seem

them eternal

owe

undertakes to place the economy under

ability, and politicians

people of the country
gratitude in the premises. We can hardly

doubt that the former Chairman .©f the President's Council

had

this

warned
sure

orf thing very actively in mind when he
against the evils and the dangers of "high-pres¬
sort

But there
ernment

intends

are

a

Ways, Too

or

not.

The eternal

high

pressures

in which gov¬
whether it so

optimism that emanates from

high authority in Washington, the

assurances

from the

politicians that depressions are to be no more, and dayin-and-dav-out preachment of the doctrine that
high and
ever
higher wages and shorter work weeks tend to place
the economy
to the extent

under constant upward pressure — except
that skepticism of official doctrines tends

to

develop. Higher wages plus more leisure plus unlim¬
ited optimism tend to
multiply demand for all sorts of
consumer
products at the same time that they place busi¬
ness'under

wage costs.
to

is

pressure to

invest capital in order to reduce

^

Meanwhile, who supposes that the current willingness
almost endlessly into debt for all sorts of things
not in
part at least a product of the philosophy of

the New Deal and the Fair Deal which
scorn the idea of thrift and
to
suppose

penditure of funds

key to prosperity?
most universal

on

brought
being continues. Of such stuff depressions are

them into
made.

Continued

seem

at

times to

that reckless

ex¬

the part of the rank and file is the

In point of fact, even, today it is al¬
politicians to grow exuberant about

among

the

from

15

page

it is

dynamic and progressive—•
only by continuing to change.
Cuts
I It

is

Across

Industries

industry

hydraulics and electronics.

days—is




on

a

matter of intense pride

public affairs today.

"Very
Realistic
of labor

Minor"

Shift

estimates

the4 rate

of

displacement that may be

discussing

attitudes

machine

involves

a n

d

toward

tool

which
ice

is

business

many

advisory
organizations
specialized serv¬

engineering
ofl'er

can

advice

and

in

the

field.

state of flux
6

devices and

ing

in the United States makes it
ment

up
the design, development
supply of automation devices.

and

The

for

society will

on

be

to

as

Since

it:

economy

rupled.

create

other

In

a

productivity in the
has

quad¬

wards,

we

strength, for earning a liv¬
ing in a more rewarding and in¬
teresting way, and opportunities

from

for

about 60 million

setting
fields

which

unknown

at

the

be

may

almost

welfare

basis than

have

can

increases

in

revolution, the level
Western

productiv¬

about

World

impact

of

the

has

automation

be

if

•

to

this

to

improvement of human

of

continuation

of

Unemployment

discussing the impact of

employment,

on

be

than

to

Pro¬

doubled

made

which

would
for

not

were

au¬

between

labor

labor

displacement

for

in

work
no

automation

will

placement is by
lent

to

about

If

it

will

bring

unemployment.
to

were

statements

spokesmen
out

that

dis¬

equiva¬

no means

saying

you

the

labor

cause

than

the

and

the

problem of

labor

some

the

fear of dislocation, dis¬
unemployment and misery,

that tech¬

say

in

and of it¬
and does not

self, destroys jobs
create new ones. This leaves

one

and

services

their

The
tural

are

increase

in

far

tech¬

continuous

unemployment

without the welfare
tain

so

a

American

measures

labor

leaders

and
cer¬

ad¬

ate

new

jobs

higher skills.
must produce

of

selves will be
uct.

There

as

well

The

as

new

cre¬

and

industry itself

automation devices,

equipment
a

will

computers

of

all

them¬

substantial prod¬

be

engineering,

the ' people

cheat

them¬

opportunities where
age
handicaps are no longer impor¬
tant.
Fatigue can be reduced be¬
will

automation

cause

tend

to

Management's

and

if

keeping

had

of

on

farms,

our

insisted

as

on

of

three-quarters

population
in

lives

the

we

our

play

agricultural

made

of

one

tions to the

ing for all
dustries

will

tion.

of

dial

chief

of

contribu¬

us.

be cited of whole in¬

can

that

increased

after

the

automation.

equipment

by

their

the

total

introduc¬

The

use

of

telephone

industry, beginning about 1920. is
one

such instance.

operating
have

more

Since 1920 the

telephone

companies

than doubled their

/■

big
toward automation.

not

only

initiate

But

automa¬

It will be in the midst of all

changes which the

adapt itself to them.
more

management

trol

and

detail
.

.

of

the

and

.

uals

at

We will need
.

.

tighter

.

decisions

of

of

process

individ¬

more

level

con¬

every

production

probably

every

tech¬

new

coordination

making

more

type

management

a

than they had

previously.
No
machine,
however
"auto¬
mated," can be trained to meet all
unforeseen
developments in Ihe
light of an understanding of gen¬
eral objectives.
Machines can be
a

for recording

memory

events, but they generally
cannot be built with imagination

lor

spotting

possibilities.

new

Photoelectric

cells

"see"

can

cer¬

tain

marks,
but
they
do
not
possess
"vision" -in
the
higher
These

sense.

functions

ments

appraisal

—still

belong

beings.

clusive

-

will

domain

It

by

large

be the

big

will

whether

not

the

of

rations."

if—when

ness,
costs

be

cheaper

adopted,

allthe

and/or

better

ex¬

corpo¬

small

or

busi¬

eventual

totaled up—it is

are

judg¬

—

and

imagination
exclusively to hu¬
T'
.V/'"

Automation

actually

than

con¬

tinuing present methods.
Look

to

at

it this way:

"automate"

"automate"

plete
that

axle

by

than

production

automobile.

parts

It is easier

manufacture

or

suppliers

it

of

This

the production

a

of

is

a

to

com¬

suggests

of component

to

numerous

industries may lend itself to auto¬

mation

rapidly.

'

Conclusion

It

has

progress

rising standard of liv¬

employment
tion

its

a

progress
it

In

by freeing labor for other tasks

that

will,
of
course,
role in determining

the

was

grandfathers' time.

our

Role

Management

transmission

opportunities.

new

lives

our

Cases

Automation,, actually, will

other, often
is no virtue

great increases in agricul¬
productivity through mech¬

farmers

is

without

to

There

anization would not have enriched

could

advanced

It

many

people would be performing

selves of

wondering how the United States
have

needed

jobs.

to

case

nologically

toxic substances.

or

contribute to the productive
of older workers and open

power

of

keeping more people at work
making automobiles than are ac¬
tually needed.
To do so would
be to cheat society of the services

that automation holds

you would have to
nological progress,

dangerous

man

shift from lines

which

longer

better

these

along with

go

of

fields,

past

in

that

say

to

risks

some

reduce the likelihood of in¬

can

built with

people to adapt them¬
new
jobs and opportu¬

to

People will

cal

To

In

dividuals coming into contact with

not

unemployment.

mass

displacement through tech¬
nological change and technologi¬
unemployment.

it

special

and safety.

ad¬

our

relationship of automation
unemployment is the problem

nities rather

dis¬

a

5.1% of

was

the

need

must

1870

Tto-CTs the real problem involved

in

selves
In

in

present.

provides 67 million

of

it

£

tinction

at

vanced ^economy.

chief

will

many

exist

welfare.

tomation

million

more

Our economy

been

The

tremendously.

vs

12

has

jobs,

living in

of

raised

Displacement

as

Yet

persons

slightly since then—it

ity. During the two centuries since
beginning of the industrial

the

of

the civilian labor force in" 1900,
4% in 1955, and still lower iri 1956.

the

create

health

nology will bring and will have to

1900, yet the rate of unem¬
ployment
has
actually
declined

other

no

which

the

since

It is elementary that long-run
improvements
in
national
eco¬
nomic

number

ductivity

present.

type of job.

any

employed
by private business has increased

profitable businesses

up

will

Automation

are,

opportunities—opportunities on the average, able to do
skills, for raising stand¬ given task with one-fourth
of living, for increasing mili¬ much labor as it took in 1870.

new

ards

created.

to alter this

seem

improved
look at

Let's have

1870

American

tary

in

of

result

a

technology.

primary impact of automa¬

Muscular labor already has

largely

Automation will probably offer
opportunities for eliminating jobs

almost absurd to fear unemploy¬

businesses mak¬

new

with about

now

people entering it or
leaving it each month.
It seems reasonable to hope that
automation will result in jobs be¬
coming more interesting, less tir¬
ing, and, in general, more per¬

The record of economic growth

;

new

right

million

eliminate jobs where the operator
is paced by the machine.

Past Experience'

One

already seeing hundreds of

in¬

displacement that is going on all
the time, from other
/causes. The
U, S. labor force is in a continuous

may

In

automation—or what you might
industry, describe as the
"politics" of the
machinery industry, the matter—here are some interest¬
packaging industry and others. It ing points:
the

across

and

much these

m a chin e s,
electrical devices,

and

the office

which

so

their

of

'

tend

involving

mechanical

mation industry." Automation cuts

kinds

hear

expansion

use.

been

maintenance of product and all of

possible
to
define
clearly what will develop in what
is already being called the "auto¬

controls

we

greater

a

telephone

-

fuels, resulting

eliminated by ma¬
production, but some mo¬
notonous,
repetitive
jobs._ have

the other requirements of this new

not

is another

to almost all commentators

in

cheaper

and

producing
motor

chine

development, sales, servicing and

—

vocate for the future.

for Gross National Product about which

of

been

Industrial Progress
Means Automation

spending by consumers and to think up ways and
means—when they seem to be needed—to
encourage them
to spend more, or at the
very least to continue to spend
without let-up?
The volume of all expenditures—which
name

of \more

service and

sonal.

tress,

go

opment
methods

The rea¬

is the devel¬

cate that it will be very minor

danger that in

historical

number of other ways

these days exerts

are

the fever of excitement many
projects will be undertaken
which can live only'so long as the fever which

permit

economics."
Other

are

doubled, too

for this outcome

deed compared to the rate of labor

tion

pressure to the best of its
to have the idea that the

course,

1920
employment
about

industry's

about

refining

oil

began

anticipated from automation indi¬

new

government

untoward

very

the

unfortunately

the subsidies granted by the

high

real. But, of
developments which
such periods.

characteristic of

Federal Government—and local governments, too, for that

as

not

of continuous-

use

in

also

this

son

situation could

records

and

danger at

is

The

methods

industry
has

a hurry to do too many things.
obvious danger is popularly known

Thursday, January 3, 1957

.

What the economist terms unwise apportionment of
resources is one of them.
There is always

are

by less ambitious

flow

ques¬

great

and

.

ployment.

suspicion

inflation—namely a rise in prices by reason, of demand
more than is
being produced. There are a good many

other

Always

economies have always

too

of these

some

avoid ~ the

to

be

the moment

now.

as

in

difficult

should

we

of the cooler heads who wonder whether that-

plans arid requirements or by a general willingness to
work harder and longer to get what we evidently want.
Of the latter, there is distressingly little evidence up to
So

immediate

for

bottom of

at the

we

are

it

find

The

very

characteristic of inflation and

ate

most

long enough to consider

we

that

think that the observations

of the President's

Yet

tions.

careful thought at this time. The squeeze
in the money market, the persistent tendency of prices
to rise, and inadequacy of resources and manpower to
meet the demands placed upon them all strongly sug¬
gest that we are trying to do too much too quickly. De¬
mands which exceed capacity or willingness to produce
worthy of

overdoing all this, and that

are

wise to pause

economy

In any

we

expect to gain no great popularity
time like this whether it is not possible

a

.

em¬

note
as

conclusion, it is important rto
that we now produce twice

much with each hour's labor

as

fathers produced just prior to
World War I, and four times as
our

much

as

duced

in

This
was

sult

our

the

grandfathers

,

achievement

neither accidental, nor'the re¬
of

planned

intervention

government.
Let

us

-

not forget

in

which

'

by

.

our concen¬

tration upon thi£ atopic, of
tion

pro¬

1870's.

remarkable

automa¬

emphasizes.'-things—

Volume

and

new

of

135

.

.

and

and

wires

and

transistors

Continued

that

The

is of human origin. The
force

ambition,

the

ventiveness, and his knack of us¬
ing his freedom of enterprise to
build

organizations

that

things and create incomeproducing jobs—these are the in¬
dispensable ingredients of prog¬

>'

■

So that much
mation
I

and

want

its vast

close

to

which

potentialities,

either

stimulate

or

imprison the dynamic capabilities
of

and

men

from

What

women.

inspired

are

to

do

they

prevented

or

doing will control what real¬

create

one

a

horizon.

Arthur

of

ment

Mass.—The

Resident

E.

ther

the

the

is almost the

match

to

the

The

made.

of this

use

A

"Cinemiracle"

as

Boston

Using

compatible
transistors,

neither

bulky

of

2

and
to

the

on

comparable

image

would

it

as

the

to

be

There has been

be

theatre.

rowings.

Arthur E.

of

Sachs

conditions

Street.

at 75

is located

office of the firm

Engdahl who

Mr.

Goldman, Sachs & Co. in
was formerly Manager of the

joined
1944

Sales and Trading Departments
the

local

of

ment"

which

provides that Na¬
tional may produce and distribute
16 "Cinemiracle" pictures in the
U.

The

S.

"Cinemiracle"

first

feature film

is

in

production
will be ready for release later
the
year.
Tentative '"title,

and

in

now

The wide

The

Future

Planning

Corpora¬

34 Street, New
York City, will have a dramatic
exhibit at the National Sports and
tion,

112

West

Vacation

Show

the New

in

York

Coliseum, from Feb. 15 to 24th,
inclusive, it was announced by
Karl D. Pettit, Jr., President of
the

company.

The

the

will point up
growing impor¬

tance of mutual funds in the over¬

all

investment

it

country,
further

picture

in

this

It

will

of

this

stated.

was

value

the

stress

type of investment opportunity to
all

levels

investors.

of

will receive
Future

Louis

a

key, the symbol of

Planning Corporation

pro-,

cle

Babish,
all

part to such

J.

whom

of

ury

feel

downward

the

time in the

is

the movie

40%

some

by

If

1965.

industry will offer bet¬

medium,

it

downward

viding the "Key to Your Future."

tional's

One of the keys

should
trend.

funds

open a

counter

treas¬

which

in

setup

will

Knickerbocker

of

v

Fund,

prize

a

be

Mutual
.

for-

the

lucky

winner. The participation of FPC
in

the

tion

National

project

panded

is

Sports and Vaca¬

indicative

promotion

sales firm which

similar

activity

plans

50

about

6%.

oer

The

to

annum

common

National Theatres is listed
New

opnortunit.y

an

pate in

a

wide

new

ex¬

salvp + ion,

of

the

feel the basic risk is

jA)]

it

and

scoen

a

number

of

Stone &

business conventions during

Joins Kenower

ANGELES,
Phillips is now

Youngberg,
Street.

& MacArthur

He

704
was

staff

Co.,
the

of

has

been

Kenower,

added

to

the

Calif.—Milton
Stone &

with

South
Spring
prev'ously with

Decline

MacArthur

Building,

Detroit

and

members

Midwest

Exchanges.,




White, Weld & Co.

&

of

compete

those

are

which

would

seem

levels

as

Since

concerned.

are

obtainable

ated

with

partner

Stock

be

H.

Delafield

Falk

Falk, associated with
&
Delal'ield,* passed

Dec. 29 at the age of 65 fol¬
lowing a long illness.

away

be the

Specialists in
U. S. Government
Securities

seek

al^le to compete in a successful

with non-Government offerings.

Th^Financial

Sterling Adds Two

BEVERLY

affiliated
Co.,

398

Drive,* members
York and Pacific Coast

Beverly

South

of the New

LOS

HILLS, Calif.—John

Anderson, Jr. is now
with
Daniel Reeves &

F.

Stock

(Special to The Financial Chronicle)

Chronicle)

Exchanges.

He

was

ANGELES, Calif.—Harold
Malvern M., Em-

T. Andersen and
bree

have

become

affiliated with

Sterling Securities Co., 714

*

Spring Street.

South

*.<

;

-

Aubrey G. Lanston

for¬

(Special to The Financial Chronicle)

Vice-President and

Treasurer

of

Investors

SamuQl

Corp. of America.

White, Weld & Co., Il l
He was formerly a

Elliott H.

comparable Treasury issues,

in

With Shaw,

merly with Neary, Purcell & Co.

passed

Rosenthal

Ed¬

—

become associ¬

in' Reynolds & Co,

Elliott

authorities.

though the latter obligations will have- to

before they will

ve

Mr.

Mills has

Sutter Street.

securities will have
with non-Government obligations as far

Executi

25.

Calif.

SAN FRANCISCO,

ward V.

in Governments Indicated

ANGELES, Calif.—Walter
H. Burruss and Reginal E. Honyben have become connected with

Dec.

Ford

Temple University, ma¬

i

Two With Samuel Franklin
Rosenthal

ir.

competition for the available

' '

v

Daniel Reeves Adds

Eliot Rosenthal
Eliot

Robert

Educated

Edward V. Mills With

Hooker

6c

(Special to The Financial Chronicie)

the

Chapter,

Associates.

attended

still much more favorable

way

fairly limited.

Daniel D. Weston & Co.

DETROIT, Mich.—Katherine M.

w«&

suburban Philadelphia schools, he

of offerings is concerned,
issues which are coming into
rush to obtain funds apparently

(Special to The Financial Chronicle)

Johnston

he

I

Youngberg Adds

LOS
A.

where

industry's

rnncidpr^d

(Special to The Financial Chronicle)

1957.

&

tanners,

Morris

new

corporate and tax-exempt bonds are

(Special to

leading expositions and trade and

Mitchell

yields that are* available

lower

medium

fhines

ii

bank

in industry
Peirson, I net

years

(Special to The Financial Chronicle)

the

than

partici¬

that muld be the movie

of

investors

in

of

to

with

as ever,

to

continue

is contemplating

in

keen

the

on

Exchange

Stock

York

offers

as

as

yield

stock

14

Philadelphia

calender

corporate

sale,

for

to

cents

Credit De¬

the

Therefore, it seems as though Treasury

Selling at 8V4, current dividend

the

of

is

exhibit
shares

will

the

on

the

let-up yet in the

Further

Na¬

answer.

chest

ure

with

joring in accounting.

change in the policies of the monetary

some

the

is

as

no

the

reverse

Perhans,

"Cinemiracle"

*

the

Mr. Elder is a member
of the Board of Governors of the

}

plentiful side, which will keep the

entertainment, good nicture
an
outstanding visual-audio

via

in

prevailing ones during the first quarter of 1957, then the heavy
offerings of corporate bonds could bring about higher levels of
interest rates.
The tax-exempt offerings are also still on the

According to all indi¬
is expected

group.

Lieuten¬

Secretary.

market from

Assuming that the tight money policies will continue to

cations this age group
to increase

after

with

likely be some action

the money

keep

is

came

leather

apparently is as strong as ever that interest rates are not likely
to decline as long 3$ the economic picture is favorable.
The large
borrowings whicn will be undertaken by corporations in the next
three months will keep the pressure on interest rates unless there

in

level off

novelty of television is starting to
pale.
The
m o s t
enthusiastic
movie-goers are in the 10 to 24
age

to

He

1943

been

period

The predictions that 1957 will be a very
good year from the business standpoint is evidently having the
effect of bringing borrowers in for money, because the feeling

future. The

near

is

market

the

"Cine¬

trend

have

a

of the Philadelphia of¬

fice.

gaining in momentum.

miracle" Division.
I

far

As
there

associated

movie attendance should

1956

of

same

as

the navy din¬

Exchange.

Elder

partment

|

Corporate Borrowings to Remain Heavy

Pietschmann, Jr.,
Theatres'

the Stock

from circulation, which will also ease the money

-

C.
Jr.,

now

the

served

ing World War II and was in com¬
mercial
banking
before joining"

for bor¬

situa¬
through the sale of Treas¬
bills by the Federal Reserve Banks.

as

Conroy,

T.

are

National

with

men

Richard

Roehement,

Coleman

Richard

and

ter

Every visitor to the FPC booth

in

success

some

display

graphically

which is outstanding both
artisticly and commercially, owes
its

demand

He

Commander in

tion, would be offset in some measure

rama"

Exhibit At Show

fall

the

since

authorities

monetary

currency

medium "Cine¬

screen

ant

Accordingly, it would be logical to expect that a decrease in
the demand for commercial bank credit, and the return flow of

square

Future Planning to

loans

easing too rapidly.

story of the old four-masted
rigger days.

seas

lessened

the

credit there would most

bank

for

the

by

"Cinemiracle Adventure"—a high

office.

of

1939.

in

whether there will be ease in money

or

less than in

considerably

demand

/.announced

and from Harvard Business Schoc 5

of the year
before.
This raises the question, as to whether the repayment of
loans, because the seasonal peak for credit would ordinarily be
passed by now, will be large enough to have a marked effect
upon .the money market because of a decrease in the need for
money and credit.
If there should be a seasonal lessening in the

"Cine¬

the

by Louis CurtiF,
partner of the firm, gradu¬
ated from Harvard College in 193"

was

loanable funds, whether the borrowers

because

bank

for

Manager

delphia office, 1531 Walnut Street.
"Mr. Case, whose appointment

Mr.

Demand

miracle" process, subject only to a
under its "consent judg¬

banking

nounced

in

made

•

'

running

Co., limitation

&

firm,, was an¬
yesterday. The Boston

investing

Federal

pictures

Engdahl

Goldman,

determine

the Central Bank rate

Monetary Authorities Would Check

sive worldwide rights and control
of production
and exhibition of

years,

Boston

in interest rates

credit

and

National Theatres has the exclu¬

office

market, since

significant in determining whether there will be another

very

increase

George F. S. Eldev

has been appointed an.
in the Boston
office, 10 Post Office Square, anP
that George F. S. Elder, with the*
firm since 1943, has been appointed
an Assistant Manager in the Phila¬

minor decline in bank loans since the peak

a

Case

M.

Stock Exchange for the last

Assistant

loaning period was passed near the end of December. However,
what happens to bank loans in January and February is going to

"Cinemiracle"
literally surrounds the audience
in both screen image and sound,
imparting a realism never before
a

two

prime risks or not.

human

effect,

experienced in

York

The trend of bank loans is going to be

1957.

to those charged for other

screen

sound

In

event.

John

the trend of interest rates right down from

if actually present during the

ear

the

on

agency

and Credit Still Strong

the demand for bank credit is one of the factors that will

"Cinemiracle"
and exactly

the

to

the

on

for Government

important in the future action* of the money

very

the movement of sound,

carry

somewhat

was

as

the first quarter of

is

This

walls.

market for

disorganized

rather

prevalent in the latter part of 1956. The
demand for money and credit is still very sizable and it is indi¬
cated that there will be very little letup in this demand during
pattern

same

are

rear

times

at

market is entering the new year, with much the

The money

HI-FI sound..
the
unit
is

nor

systems

and

Demand for Money

heavy — some
both.
Five
speakers are set behind the huge
curved screen, 6 on the side walls
existing

thin

-

It is cap¬

able! of the most perfect record¬
ing

M.

Nevj

much more attractive than

are

reportedly by purchases made
and public pension funds.

accounts

developed by ,RCA.

bonds, to levels tnat

very

decline,

•

The audio part of
was

the

non-Government offerings.

are

long Government securities has been, cushioned

have been of the highest qual¬
...

John

with

associated

Case,

brokers,

that

future, unless money market conditions are changed.

print¬

new

as

securities

and

announced

have

r

comparable Treasury securities. This &oes not seem to indicate
the Treasury obligations will be off the defensive in the near

obtained

results

advisors,

very

Harriman & Co
investment

bankers,

flotations, but also the older outstanding issues of corporate

new

steadiness, National Theatres has
developed its own film printer for
which
patent
applications have
been

the

reflect

to

and credit conditions which are currently

and tax-free

un¬

any

continuing

commercial

uptrend in interest rates has taken yields of not only the

The

between

prevent

is

market

Government

money

attractive to investors

as

scope

To perfect fur¬

color

and

panels

ity.

appoint¬

Engdahl

of

Manager

This

of

degrees

of the human eye.

er

Engdahl Appointed
By Goldman, Sachs

146

Announce Appointm'nfs

prevailing.
Accordingly, quotations of these securities are still being adjusted
to tne competition they are getting from bank loans, corporate
and tax free bond offerings. Even though certain Treasury issues
have made all-time lows, these obligations as a group are still not

that

image

elongated

full

through the

ly happens to automation. "

BOSTON,

The

tight

Each projector covers

covers

Governments

on

Brown Brothers

one-third of the huge screen area,
with three panels interlocking to

,

by urging you to
attention to
the

redoubled

pay

factors

projectors.

Reporter

By JOHN T. CHIPPENDALE, JR.

I Like Best

I respect auto¬

as

Our

produce

useful

ress.

Brown Bros. Karriman

Security

of man's in¬

course

2

page

25-

(25)

all

driving

unpredictable

from

vacuum

—

progress

of

J

The Commercial and Financial Chronicle

.

fascinating combinations

metal

tubes

Number 5600

had

away

been

Planning

LOS

.

215

t

B,

West

Franklin &

Seventh

Company,

Street.

SAN

FRANCISCO,

Calif.

—

15 BROAD

Howard T. Pike has become asso¬

ciated
1

with

Shaw, Hooker &

Montgomery

Exchange.
was formerly with Davidson &
and Brush, Slocumb & Co.

He
Co.

ST., NF.W YORK 5

WHiteliali 3-1200

Co.,

Street,' members of

the Pacific Coast Stock

Co.

INCOR FORATED

231

So. l.a Salle Si.

45 Milk

St.

CHICAGO 4

BOSTON 9

ST 2-9190

HA 6-6463

/
26

The Commercial

(26)

that

they may be classified as gust of 1955, so that the net excess
"sieady" or "up" in every case. -/ reserves figure, the:: free reserves

7

.

„

Now,

are
three • measures
of
Reserve mis¬ These
takes.
The
answer
to
this is certain phases of business activity
long
experience has in¬
either "No" (as indicated in the which
outline) or at least is "not neces¬ dicated usually turn upward or
downward before general business
sarily." To this subject I shall

presently.
Prosperity is certain—be¬
of population growth. Who

(2)
cause

has

statement

some

the

States virtually

the United

is

in the

barometers

true

giving

as to what
in the general

hint

a

going

to come
business picture.

of

population

of

sense

the effect that

to

rapidly rising

like

form

months

in "recent

read

not

therefore per¬

activity does; and

return

~ •

..

Average hours worked per
week in manufacturing industries,
(1)

guar¬

prosperity in our country? has shown ah upward trend since
Well, it would be nice .if it were May, 1956, and is very high-, and
so simple.;. Now, the fact is that
therefore may be classified as a
a birth certificate has a great deal
favorable indicator.
of purchasing power and two of
(2) New construction contracts
the most important things in the awarded-. This indicator has been
world—Love and Happiness; but
going downward rather markedly
ithasn't enough material pur¬ since
February of this year and
chasing power to buy a dozen therefore is unfavorable.
;
diapers. If mere births were what
(3) Manufacturers' new orders.
made
nations
prosperous,
what
These have been irregularly up¬
antees

.

would be the most prosperous na¬
tions in the world?
They would

include countries
India

that

ward since March of this year, are

classified

are

classified

Depression

is

said

Marx

ized
the

picture—already character¬
being the key factor in
ups
and downs of business.
as

Who

and

I

No.

another

mistake

made

nearest

America

by

have

(4)

ever

men's
so¬

us

that

goods

of

85%

pur¬

are

haberdashery.

what

had

is

the

from

made

information

best

attitudes is to be

consumer

studies

that

are

Survey
Research
Center, a group of associates of
pacity.
mine at the University of Michi¬
the thought that the tremendous
gan. These competent people make
increase
which
is
going on in
American productive capacity, be-- surveys of Consumer Finances for
the Federal Reserve Board, which
cause
of
technology and better
are
reported in the Federal Re¬
capital and better management
serve
Bulletin.
They also make
and all these things, will guar¬
interim, surveys 'for
other pur¬
antee prosperity.
This is a half
poses. They have devised an In¬
truth, but a dangerous one. It's a
of

cause

rising

the

ca¬
Here again we encounter

dex

sense that rising
capacity does indeed
fill the requirements for the sup¬
ply side of the picture. This may

called

work

for

to

this

physical ground
enlargement of out¬

increase

an

being.

Developing

ducing

more

however,
market

the

Jf these clever

and

the

use

standard

speech) where

but

strong

big

a

buying is
the , year
going to be pro¬
upsurge
to
the

consumer

be

in

plant and equipment? Surveys
by McGraw-Hill and .the
Department of Commerce indicate

made

going

that business is planning to spend

grow

grew

even

of

more

money

equipment

be¬

fabulous

next
totals

on

year

And

what

of

that

expansion

or

tive

ventories?

Inventories

somewhat

in

does not in itself
increase in purchas¬

are

power.

now

demand

at

that

flows

contraction

at

from

in¬

of

have

risen

months

recent

least

of

portion

business

an

the

spent

ing from this ingenious productive
activity. An increase in produc¬

ing

and

this
past
year, when they reached an all-'
time high.

buy the increased supply
which is flow¬

guarantee

plant
than

a

and

reasonably

Not under

nega-

though,

that

that week

pbsitive turn in"

its

(5)

history

spending'stops.
nor

contention.

dependent

Neither

prosperity

is not

defense spending.

on

,

Let

us now

to

mitted

then'turn

factors

as

•under

These
five

monetary

regulators, and
Consider

of

will

the
be

headings:

barometers, (2)
the

atten¬

are

sub¬

factors,

three

'

The

best

gest

that

would

5%

was

eral

Government

—

partly

on

ac¬

account .of

analyzed

other

(1)
(4)

on

factors—seem

con¬

likely do

go

perhaps $2.5

billion; and ex¬
penditures of state and local gov¬

the

up

(3)
the

ernments

barometers.

partly

by the

same

"by

has been domWorld Wkr

the

informal

an

Of

coalition

^'somewhat acci-" Republican and Democratic Sena$500 million 111- .'tors and Representatives, who ale

—

the

be

it

eauallv

of

actly

our

omy

effort.

4

every

years' where people

that the

«?iri+

freely *,is and
up,

y

,

requirements

adequately by
the

total

the

ers,

the

in

money

There

atrpresent
rather

factor.;

Fed

*

are.

of

millions

of

of

thousands

of

Federal

are

states,

governmentalentities

in

and

pushing them
Evidently all
have

tinues

districts,
counties, and*Trrigation dis-

accelerators

been

they

the*? test

pushirfg

Can
,

and

of

a

eral'

velocity of circulation of
has gone up and is now

than

be

high

since therefore

likely to

more

It

up.

American people tbbn he has paid

classified

be

may

unfavorable.

The

demand

The

net

effect

It's rather on the
low side and taken by itself is an
unfavorable
been

factor

offset

which

has

temporarily

by the
velocity. But, and
significant fact, the
total quantity of money is something which is subject to a mod-

high

level

this

is

of

the

est amount of control

lators,'working
the

by the regu-

with

you

people

Now

then

let's
the

to

Regulators
turn

our *

.

v.'^

nations

attention

tive

are

of

four

not

along these" lirles'are*
possible.
*
v
*

ber banks,

the "net

or

excess

million; subtracting

mal"
bank
lion

a

controj^jbf

Government

jn> ^he Fed must ask whether this

free

reserves

or

net excess

.

decline

is

just

(because,
doesn't

of

move

whether

or

which

a

"jiggle"'in^

ascending

otherwise
in

a

curve

business-

course,

smooth curve),

"jiggle"—\

this' little

have lasted two iar
three months—is the beginning'of,?
a

may

reai downturn: It might

before the

months

take a,

Fed

(or,

convinced,-and

decided'to

take

the foot off the brake, and push
down on the accelerator. If, however, this brake is a
kind that
release - at
once, » that
doesn't release for perhaps three

doesn't

to

six

accelerator

is

months,

also

and

the

amount.

Looking then at the spending
plans of the spenders we conclude

reserves..

figure
part

The

magnitude

depends

on

in

a

deliberate

of

very

Federal

this

large
Re-

policy, and therefore it is
significant that the Federal Re-

serve

serve

allowed this

down in

ally to

ligure to

come

1955, and allowed it actu-

cross

the

zero

line in Au-

-

delayed

a

— it doesn't begin ;tcr
have any effect for several months.'

the Federal mechanism

down

-in

Wash-

a Repuoli- The net result might be that-a
Republican business downturn could occur-.in
Republican
Democratic

Democratic stimulative
Democratic

-

the United" States and
going - for- about a yeai
^

effects

of

jreversed

Federal Reserve action gould be-

Congress; tand ; foip:th, a- DemoT gin. to be fglt.
crafic' Pfesident w^th a Republic;" .-Now in 9 saying
can

Now

frommthi§

$100
million
of
member things,borrowings leaves $700 mil-: business

as

several

several weeks before the key;-

months

re-

"nor-

downward, it wouid
hours to several days

anybody else) could conclude that,

Congress. Th^e are the four
possibilities. How ^any of these
serves": as
they are-* sometimes f°ur do you suppose, we have had
called, are very low.. This figure* *n *he United States since World
is calculated by taking- the tig- iWar II?
We've hg£ every One of
ure
for excess reserves and sub- ^bem!
We've haOp every one of
trading therefrom the amount of- these four .combir^ations^ a n d I
member bank borrowings.
Usu- should think most^pf,us inighL,be
ally the net result will be found rather hard put to it to tell lin
to be a positive figure.
Normally, iust wbat years we had each of
excess
reserves
may
amount, to these combinations.^,
The "free reserves" of the menW

.

turn

lew

principal combi-

The Fed-

efforts

deIay might occuK.If business did

r

s0l??e- hesitation that I refer to
Pohtics at all because I realize
it is a delicate subject,
Nevertheles, politics and governmenf a^e an important part of the
t°t;al picture and some reference

ington. One woul'djbe
eral Reserve System is one of the^e.
can President
and^ a
The Federal Reserve has already
Congress; a second," a
raised minimum reserve require-.-.President
with'*"'a
ments almost to their respective
Congress; a third^ a
legal maxima; so further.restrict; President**: with Jl a, •
regulators.

~

which the

in

Finally the upsetters: politics,: a reaj downturn was occurring.*,
crises,wars and. others. It is with- Suppose that the Fed were finally ;

There

•*•

The

-

is the- way

-

Th

must be made to these factors.

bankers.

Here

an

•

factors

necessary.

little

to

inflationary.

policy

several

are

"suggest that there might be a"

important qualification that both

,

not

there

be

velocity)—:-of these regulators can be turned;
the demonstrated desire to sit on °n ?r °*L in Washington; and if a
cash—seems to be relatively low
business decline should start, to
and might rise,,This would be unoccur, both of these, which are
favorable. The rate of increase in
now unfavorable, ^ould be made
the quantity of money certainly is favorable very rapidly.
(reciprocal

money

-

i*. v
statistical
information
becomes
these regulators must available; then when this comes

-Hoth of

as

to

^ would

serious delay in getting a reversal
if
it ' should
become
stimulus,"

be classified therefore as unfayorable but subject to the very

for

It

or

less toispencb

•

it

respect

restrictive

Reserve's

start to

of

{bis, of course, is to leave them.

down

go

them:

/

with

main-thing to, watch is the
possible adverse effect of the Fed-

.

to

'

Act

as though we are tin for
period of high level prosperity.

because

back

Reserve

in Time?

summarize

that

the demand for cash,

Federal

The

ac-

in
the nation's
money pushing on the brakes
that the
which a couple of yeara Fed has been dofhg. The fiscal
ago hit the 5% annual rate, has
situation also has ten mildly rebeen going down pretty steadily
strictive in the last-year, because
now for quite a long time and reUncle Sam —on a cash consoli-'
cently declined to only a 2% an- .dated basis has taken away $6
nual increase. This small increase-billion
more
mioney
from
the

offset by changes in ve-

one con-.'

-

appear

them

their

re4

"

'

-

the'short-run "outlook.*

all

speeds,

the

for

to have been

acute

•

t

To

-

for

for the Hungarian

,

the

increase

would

destruc-*

so

The middle East
very

•*

peo-

are

at Various

appetrs

people-.

the

States—school

supply,

relatively

be

-

,

crises,-1
going to be with %

solved harshly

The light that it sheds on this celerators
enough* in
bygone
year's situation is this: The rate or months
so *
as -"•to * offset
the

money

might

Of

out'any

wars*

break

may

it

millions-, As

moment

and

tricts, and the rest. All these
pie have their own brakes

natlon*

in

'

and

guess they are
us
The Hungarian crisis

business

and" " the

of

tens

the f^st of the 116,-

and

is

has been

war

-

vl alto tLoW% my population
fo^ecast for the S'S by

consum-

millions of independent busi-.

United

is

locity and

crises

favor-

a

unfavorable

an
-

of

time'and

being

as

than

'

f

What

coursf

pros-

thfej*48

000

a very remarkable trick,
something that were only
working towaid gradually, as a

sure,

autontobi^-

able

to: be

the

then there

hand, if the velocity of
goes down, then
stais
aided
by
having
the
supply grow a little bit
than average. This, to be

faster

is

that

Government,

circulation

bility

fact

organizations,

On

money

explanation

the

ment

econ- "

braking

only driVfer of the

tens

dreds

met

other

of

amount

this

ness and professional men, hun-

then

are

Of

.^millions of other 'drivers.. There .{

In »are

small increase

a

in

perity.

spending

velocity of circulation
the national

ex-

result

a

The

found

same-

year..

are

as

.isn't the

economy

same

or

certain

growth should not be

the

slow-down in the* American

of

the

at

sug-'

average

vicinity

But

year.

is

stability of
rate

the

in

to

seem

long-term

I

infer

namely^.' ftiat
is

thi^, let • me
hasten to say that I don't mean to r
be critical of the Federal Reserve,
Gilbert and Sullivan pointed o~ut
to us that-a policeman's life r is
sometimes not a happy one,, and
this observation applied to the^
Federal Reserve.!Occasionally,yes^
,

to be sure it's

a.

pleasant duty -of

the >Federal" Reserv^ 'to provide
"stimulus to the American economy

and see faces wreathed in smiles
the Fed turns on the stekm.

two* as

Americah -But now and then it would seem

ahmS^^Dolitics-proofj isymbolically) to be their duty

and, secondly,
th^t people - are to come to the gay party at the
overlooking the^jignificance-of very
height of gaiety in, the
the Congress.:.
In the altogether evening and to say "Folks,- if you
natural glamour of, excitement as-:. don't stop drinking, and go home,
sociated with Presidential election you're going to have an awful
^

world

and

II

,,

years,

estimates

per

time

$800

Finally, what about government
outlays? Expenditures of the Fed¬

dition

the upsetters.




ahead.

count of the unsettled

the spenders,
(5)

.

business

being really relevant to

the determination

outlook.

our

which

element of strength is to be
found
in
connection
with
in¬
ventory expansion in the months

any

analysis confirms this
Our

The Short-Run Business Outlook

tion

high level relative'to sales,-and it
may be doubted therefore whether

Depression^iS^certain—when

does that..

the Congress of

dental'result of a:

.

■

defense

constitutional syst-

our

for

.

-

on

<of the short green

capacity

the

in

except

of the crease in the "federal
Reserve certainly not radicals, and might
meaning float, and probably will not; be-* be classified,as conservatives. This :
by
this term,
currency
outside" comer permanent.^
.* v..
;, v" 'is the situation* today,1* and it is
banks, plus demand deposits adAt the same time* as you know,
"going to be the situation under the
justed,
plus
time
deposits
in the Fed has raised discount rates' new Congress;* so that we need
banks. This is the same figure and" to the highest leVfcl in 20
years. • not expect any radical or disturbs
the same totals which are reported
These two.' things taken togethering legislation out of the Congress^*1
regularly in the FederaJ Reserve represent ' the
Federal
Reserve-This factor, taken together with
Bulletin, and other publications, v
System putting omthe brakes, and* the high leveh of confidence ih5
It is not certain just what the
putting them on -rgther hard., -In- spired in the people generally by
long-term rate and growth of the deed, it's rather—*-surprising that President
Eisenhower^ permits us
nation's money supply should be.
theVe
hasn't Vbeerifc a ~ substantial to classify politics and govern-'1
over

nation's money supply

What of business plans to spend

fore, then the national problem, is
to find enough more of the
long
green to

-

pro¬

figure

one

bit

a

American economy.

of

are

down

This

1956,

that

to

viding

not
guarantee, a
increased output.
fellows

of

ahead but is not

services,

to make two blades of grass

is

going

well-

our

ways

goods

does

for

in

turned

Attitudes.

although it was
still high, and the inference from

put in the United States which is
basic

Consumer

summer

the
an

of

Index

productive

(to

by

productive

half truth-in the

be

ously

already been made
of the necessity in an expanding
economy of having a gradual exthe

figurehas been
since "almost

ever

veto legis-

may

lation; which may be passed, pvfcr
his veto, but he passes no laws.

continu-*. tem; the tbngress
perhaps three* / The fact is that
weeks,
one
of fh'em
being; ;tne the United States
week ended Nov. ^3.
It appears, inated ever since

monetary factors;

Mention has

The

of

attitude

the

The

consumers?

be¬

to

their purchase is con¬
by
women,
including,
surprisingly
enough,

Now,
about

—

of

course

than 50% of men's suits and

more

seen.

Prosperity is certain

of-

or

trolled,
perhaps

relatively classless society that

the world has

speak

consumer

chased,

cialist aim of prosperity for all in
a

I

disclosed

the

the-

thing to the professed

feeling

tive

they don't have it, they
can't spend it.

pansion,

This

1.955.

-

our

because if

and

consumers

are

sumers"

professional forecasting. He didn't
really understand the capitalism
of his time, and didn't have the
faintest glimmer of the kind of
capitalism which has produced in
States of

governments.

people that we : all
know.
I'm
speaking of our wives. I'm not
saving this in any facetious sense.
Studies
by
marketing
experts

this unfortunate man, so unhappy
in both his personal life and his

the United

businesses,

,

turn

.

We, I think, may pass it over very
lightly by saying that once again
is

spend
great

these days? When I speak of "con¬

people in

this

who

people

consumers,

—

How

hundreds of millions of
the world believe this.

expect

the

are

the money? There are three

certain—be¬
so.

side

of the

groups
Karl

be

may

demand

the

of

what

Now

with
an
appropriate increase in total
purchasing power — the nations
money
supply—then indeed the
increase in the population does
become significant.
(3)

barometers

favorable to business

as

to the

Congress and he

figure, became negative in August

.

us

out

Two

expansion.

rise in population is coupled

cause

favorable.

as

three

the

of

they are among
countries. No; mere
not enough; but* if the

poorest

births

high, and therefore may be

very

and

could

we

actually

name;

the

China

like

others

and

however, let

attention

Federal

of

+,

The Monetary Factors

The Outlook for Business

Thursday, January 3, 1957

>

_

Continued jfom page

pause

and,Financial Chronicle
*4,.

campaigns it's easy^ to forget' that

there's

also

a

Washington.
may

suggest

down

Congress

Yes,

.

the

in

President
to
the

legislation

hangover in the morning." No
well-meaning advisor who comes
to the g^y party with this kind
of advice is welcome. ^Moreover

*-

Volume

185

Number 5SO0

,f

.

.

The Commercial^ind Financial Chronicle

.

27

(27)
he

be

may

harsher
the

subjected

criticism

people

to

lightly over api important matter I .to the standard of courage disam- going to say that I think that
played simply by our own forethere now e^ist policies — some fathers, the pioneers.
I mentipn
private and sorpe public—that will this because a couple of years
ago "
make ;it impossible for us ever to ~j driving back - from the West

even

that

suppose

—

the

at

party, unwillingly and regretfully, do take this
unwelcome advice and go home
and therefore arise the next

ing ;clear-eyed and

ha.ve-

morn-

clear-headed,

Continued

say1 "another depression"going to pass" within, a
couple of
L&on't mean one like the ghastly miles of the" geographical center
collapse of-the T930l's; I, mean of the United States.
Being, as t
unwelcome advice the1 night benqttiing even a fifth as bad, as-.o^viously^ am, £•;very,'- sentimental
fore was totally unnecessary. This that. There will be
dips and even about the United States, I wanted
is the difficulty that the Fed is
perhaps
recessions; r but * never, to go and see the place that the
in and indeed because of an
ap- another depression,
f ./-> •/%■;
:; U. S. Coast and Geodetic, Survey
preciation
of
this
difficulty, ?I- •/- .'.Business.
going to -go /up.tkasi determined :to be.the exact
think perhaps we ought to

craft

national

a

eraL Reserve.

Week, and

week

I

dedi^AJdw^.does-

the

Fed^bysj^ess

We have Boy

have

we,

Mother-in-Law
others.

to

•,

Week,

think

it"

v—-

-

-

In fact,

some-

•- -•«•*

•-•■

-

•

:
«

a

■r

ibf^nstaiice,;..what;

automobile

on

up

this rooim—with

as

the top. Our.children
atop themonumerit. It

;

.

^

expresskSdneS^d"WrT

best to
Plete

flagpole

^buggy-Whip business. ,>And" then climbed

in

llathv

business rdid ;tp

isn't.as tall

the
the

with

thp

^h€re'^ ^npt.b^exampte\whieh;*-I. wps a beautiful day# and we took
^ nnf ES"" deaULed ; With .sadness because .I; color slides of them standing there

FpH

asreement

-

difficult

astonishmentthat ,L heads. And then I thought about
learned that tfie 1955 buckwheat the great
distances .from
that

and

unenviable

task,

abler

^-indicator

pressure

of

conclude

flationary

pressure

Because that's

enough^so.

that- the
is

in-..years

finished.

'

why./they.

since,

"statistics

/kept,'that is to say, since the Civil
Now il/wasn'Lbecause?oyr

on» na question .about that./country's
be£ri /getting' smaller;
Inflation and the fear of, more inif's been getting bigger! .It isn't
flation caused, the Fed to put
onbecause the American people me
.

as.spon as

S
of

.they

:-Ifv^?e .cakes.
;to° pQor tp veat'

fheinflationary

see

thnf rr,5?nUf
.that
might

.lags

fore stimulus takes

No,

UKSe like
planatiopbe-

n

occur

more

Apparently

'tu.

con-

who

we

r

came

^

,

and,
,

.

<

,

t

,

1956 idleness

the

was

number

of man-days of idleness for
show, V was the greatest since
than 59,000,000 man-days were lost.

1965, Labor

hind

when
'».*>.:

States car production for the entire year 1956 was
by "Ward's Automotive Reports", at .5,804,566,; a 26.9%
,

from

the

7,942,132

autos

statistical publication

last

1952,

turned

in record-breaking

out

said that trucks dropped. 11%. .be-

to 1,109,203 from .1,246,442 and cars and trucks
24.8%, Jo 6,913,769 from 9,188,574..
/
^>
Production last week totaled 99,022 cars apd 12,167 trucks
compared with. 154,832 and 23,903 in the previous week All assem¬
bly plants were idle on Monday and Tuesday (Dec, 24-25) and
were down on Monday and Tuesday of this week (Dec. 31-J^n. 1).
Only Ford, Mercury, Lincoln, Cadillac, Dodge and Chrysler plan¬
ned to run assemebly lines tomorrow on Saturday, last.
Y "Ward's" noted that as the year ends, the industry will have
year,

combined fell

,

'

out 1,622,500 new 1957 cars.
Last year at this time, in
comparison 2,100,000 1956 models had been built.
; So far, General Motors has accounted for 44.4% of 1957 model
car production, Ford Motor Co. 34.8%, Chrysler 16.6% and Ameri¬
can Motors and Studebaker-Packard combined 4.2%.
!
turned

bridges,

no

•

wilderness

across.

total

The

-

.

highways,

no

They

aa~,,'

half of

/United

/ That wasn't the problem of the
pioneers—there were no motels,

buckwheat pancakes must be

hold, this

The

decline

a

,

buckheat pansome other ex-

there's

/
^ ^
review of the year's^ labor-

a

Department'figures

estimated

comfortable car,/ on
well-paved .highways; our only
-problem was whether we could
find a grade /'A" motel or might
have: to settle for an "A minus"
motel. / ,-

haveibe/War.*

.btefH6.

in '•

have; been -come

•%

1956

;;A: total of 3,800 strikes started in 1956 compared with morb *•

crop

inflationary

"turns, down^

that- they

point out to the four corners, 1,500
or 1,800 miles to Maine, to Key
West/ and to San Diego, and * to
the Olympic. Peninsula and the
miles between them, and the peo1955^ buckwheat pie; who came across those di's.crop, was the^sfpariest buckwheat? lances in .pioneer
days. As v we
crop
ever- fgeprded - inr.the;. 90^ stood by the monument, we had

the department said jn

in

man-days of idlteness,

1955, fewer than ip any year sinco 1950 with .the
of 1954, according to department statistics. /The total
number of man-days lost from all strikes in effect over 1956
totaled 33,000,000, compared with 28,200,000 in 1955,//The 1956
figure included about 100 strikes involving some 100,000 workers
which were still going on at the start of 1956.
/

•

in the United States; which
How long will the Fed keep,the;-was
only about .2 million bushels,
brake on? My ..estimate is thatr v^as, small
..cobipared to :the" all-,
they'll take the brake off as soon time high
registered in 1905 when
as
some
commodity price index, it was 10 million
bushels; but not
which they consider to be a feli-i
only that, 'thQY
..

more

exception

/

ihK-alsowith#
.

r

;,.v*rT1'

.

(the nationwide steel. strike involving 650,009
workers in July and the continuation of a stoppage involving
Westinghouse. Electric Corp.: which began In 1955.

:

evervthini Hke buc^vhcaF,pahcakes;Ylt: was-* with'Old Glory flying above their

with

number

but cost

'%
of workers

than 4,300 in

;

Consider,

smaller

a

year,

management disputes, more than
accounted lor- by

-

.

woe

the previous

//^However,

y

•

-

-Fewer; strikes idled
than>in

..

the United States Department of Labor reported.

*;

ofourjnatipn.
of. Lebanon,
Kansas,hear the Nebraska border.

~. J>.,

«>,

.

1

thi£ mean that- every ^geographical center
is goipg to prosper? 'No.-if s r just northwest

Scout Some, will
gd3bwn.

Lo—

or about 80% or this isdn military airmissiles," concludes "The Iron Age." 1 •v"

and. guided

'

_

cate.

5

heavy at $17,200,000,000
-

to conclude that the

were

page

.1
from the map that we were

another-^depression.'"And-.noted

when. I

It wpuld not be unreasonable then

if-'they

from,

i.,.—.

,.

Ford Division is outdistancing
new

model cars, but,

weeks before
w

,,

-iii

^

and isome

iu

+

long-run.

picture is

fnlT1^ Seni ou.tlopk con- ;

LrliLl?
provided

p'
Pro-

n

that all goes well.

•

Wii r-1Se'
o^°^-rige"ai
^••S iS

9n&

Lnrt *,
'in J*rap
w

T&

t

^

lsp 1

I

piSt

is

Twf aL 1
s

He

iGS!T^u S?y

Now.

we

all

many

kinds

come

to

some

and

forms.

/ Indians,

:

of

^n°- matter
is,

of fabulous growth,

Passible..ilindrances

.

* of

Some

some

discomforts

even

died

death,

were

'..^"Ward's"

in

•
«

+

J

overlookecLthe fact that,

labor-management

relations/

came

out

this

across

consumer

debt,

decline'fii

..become ; great

great

factories;

.

a

production

car

record

by only 1.1%. The/country assembled an estimated 373,066
compared to the record of 377,598 set in 1955.

cars

the like month of

but exceeded

previous month

estirnatB
■

v)'"

^

i

■.

•,.^

..

4

/

,.-4

.-'v

*.,

.^ ^/

incomplete figures,
according to the department-totaled $1,395,000,000 for the month,
a
decline from the record $1,554,000,000 in October but above
the $1,247,000,000 of November, 1955.
•
tin November, the department said, total exports came to
$1,505,000,000, compared with $1,656,000,000 in October and $L32L000,0OO in November, 1955.
Military; aid shipments,„. mcredsed' slightly" * over th6-$101/300,000 .of October, accotding to

coun-

November commercial

exports, based

on

-

"

they

aCCUSt°m,°UL W1T

below
1955, the
preliminary

Exports by United States traders during November fell
the

United States Department of Commerce reported in a

;

Also: the national debt, .creeping: try, and they plowed fhe sod, and
collectivism, unwise governmental they built grist mills that were to
policies,

\:

.

that ..CanadaCmissed

said

of starvation,

some
died in. childbirth, some
froze to death, some drowned as

- ,,
ofvthe

significantly, it started producing them three

Chevrolet.

this year

.

slain by

possible hindrances that might / they forded .streams; .then,;farther
s^op- ^his k'r^th and this high- West, -some were taken by thirst
leyel prosperity^ I have a list of and by heat. But they kept on go-them hereinilation, deflation# .ing! Few of them turned back.
taxation, ..automation,- .integration^ ".They kept on going in the face of
^ disintegration,: ^nd deterioration .hardships /-and
dangers.
They

.

re»^'■ -l

weeK

j/u

one

faced, .hardships and

ge

total

.

k

■

-

:

.

h

ft
it

commodities will

^ a quick look at dhe down. But by: and large, the
business, outlook. .The

Chevrolet by more th^p 60,000

;

the spirit of enterprise, exhaus- started little yillages which were
; 'T
Y
0
i
"LAr0Und
Vje/tion of natural, resources; and then to become great cities and they 2 the report.
ypu might add any others that oc- built up
this great,
big,
rich,
af w years hou{"s a week inside
Steel Production Scheduled at 98% of 1957 Rated
wholly apart from cur
yOU
spme of these aren't beautiful country that we have
/.
Capacity This \Veek
/
^economic consequences which ; reai menaces/ Some are/and it's inherited. We would be very poor
mpossible.
our-job to find solutions for them, descendants, indeed, of these peoMetalworking sales in 1957 will be 7.7% higher than they
The population is going to conwere in 1956, according to a survey of 7.500 general managers of
in .addition1 to these, I call atple if we couldn't, im our turn,
tinue, to grow,; at least 15% per
the country's metalworking plants by "Steel" magazine, the ^na¬
tention to three others., One is face ?ur problems with courage,
decade.
In
fact, in * the^
tional metalworking weekly/ released on Monday df this week.
presentVtximpJacency^^Clur very success as
find solutions for them. Not
decade' it s going to grow about
a nafiQn might induce a
•Figures based on the survev show that the industry expects
feeling of only
make our country a richer
to * set a record of $145,000,000,000 in» sales: during the next 12
v.
self-satisfaction? and if compla- country—that will be easy. But
The national income will
months, compared with $135,000,000,000 during the past year Halt
grow
cency comes,r decline cannot
be also to make it a better countryfaster than either of these—it*will
the increase will represent higher physical volume and half will
far
behind.. Second, of course, which is much more important—
grow in the neighborhood of 40%.- would be a
represent higher prices, the magazine stated.
disastrous war.
And
and turn over this richer and bet,/ Metalworking
per, decade. Some of these projeca -'third
companies co-operating in ' Steel s . survey
would be a kind of inter country to our grandchildren
tiops suggest how much income is ternal weakness
expect production and sales will be good throughout the year.
growing out of and their grandchildren. That is
going to
rise
in
the
next
10
our very
They predict the second half will be 2.3% better than the first
easy living.
It looks as the challenge,
years,
together with population,-though the standard of
half. This expectation contradicts the often heard prediction of a
living of
-

,

r

)

■

...

.

.

:

*

'

.

"

.

-

_

■

.

national

bank

income, and the total of

deposits,

which

the

probably

be

will go.up about 40%.

American -fieople is going to
doubled in the next 30 or 40

years.
Will this easy living do
connection/something to our moral fiber, pergrowth that it's ' haps even to our physical strength,
going to be very uneven in the -to/our vigor?.;? Easy living has
United States. In the period from-done this to
people. I'm sure you
1940 to
1950, this country grew -can .all find examples among your
■

It

must

with

be

said

■

in

population

abo'ut

19

million

mendous

persons, a treof about 15%.

increase

Did

every portion
share in this? No.

of

of

Amer-

*

counties, only 51%
increase at all.' Mind

where

a man or a family. And it's
something we/must all watch.
Indeed all of these things need
-to.rbe the .CQncprn of all of us.

you, not an increase of average or

Not .solely

better,/but

portant

increase

any

of

the country ! mined

Out

ica's 3,000-odd

showed any

acquaintances *

own.

wealth and easy living has under-

at

all!

in

Forty-nine

because

they

are

im-

t^iepiselves,■;

but

be-

percent of AmericanT cause these elements of strength
counties showed.an actual decline undergird our/economic
system.
in this period of time. And this
If something.happens to these espattern is due to be continued.
sentially
non-economic
For this
reasons,
tions in
as

well

reason

well

as

associated
your
as

own

your

as

with

other

condi-

neighborhood,

own

management

of your

own
bank, the rate ofgrowth in bank deposits is going
to
be
enormously
different - as "
among different banks.

The
and

economy

is

going to

is going to be stable.

grow

Passing




then

our

fairly

Summary

To

The

summarize

in

short-term

subject

the

to

a

drop off in the second half.
few

outlook

—

good

qualification

that

we need to watch out tor tp^^pos-

adverse effects of. Federal
Heserve policies.
The long-run
ouuook—simply fabulous, pro-

problems

with

wisdom,

,

a n d

rapidly.
To
we
shall

meet

More

these
the

factors that Jhe -Prophet Isaiah
mentioned when he said "and wis-

dom and knowledge shall be the
stability of thy. times."
We also
heed

more

been

displaying/in

courage

than

we

have

our country in

recent years. "We need to live up

H

Now

Ore.

—

Gordon

Two

Co., Inc.

He

was

of

five

research.

product

respondents are planning to add capacity

for-

merly with Pacific Northwest Co.

purchase of new production

defer planned expansions.

managers

expect to

Over-all,

dollars in research than they

around
Its

Moore has become associated with

Walston &

_

_

.

'

The

R.

...

of

them to curtail or

(Special to The Financial Chronicle)

EUGENE,

,

projects.^

than half the

for product research
ucts by three of five

With Walston

-

a

gross

they

increase their budgets for

will

spend nearly 5% more
Greater expenditures

did last year.

will result in the introduction of new prod¬

companies.

publication said 1956 is ending with steel costing users
9% more than at the start of the year.

composite on steelmaking scrap declined 33
ton.

"

cents to $64.50

-

Continued

on

.

.

The rate of expansion will be slower than in 1956 be¬
tighter money and completion of projected programs.
One-fourth of the respondents said the capital shortage will force
cause

writers, Inc., 3010 Huston Street,

two

/

..

equipment.

B.

-

need

.

through new plants, additions or the

Arthur

,

sales volume.

of proposed

000,000

Awenius, William C. Chadwell,
Richard T.
Goold,
Stanley
A.
values, Humphrey and William D. Weddel
prosperity will collapse are now with American Under-

problems

1

publication said metalworking c^nacitv is scheduled for
a 5.6% -expansion
during 1957, despite tight money and govern¬
ment turndown of fast tax amortization applications for $2,300,-

(Special to The Financial Chronicle)
—

»

looked for in metalworking during
1957, although prices will edge up.
The average price rise is
expected to be 3 9% and will account for about half the increase
The

courage,

Colo.

,/

Runaway inflation is not

'

in dollar

With Amer. Underwriters
DENVER,

_

.

is

workers

;

VIaed that we all get in and do
our share in meeting the nations

-knowledge, and

,

expected to rise 4% in 1957. Higher unit
wage costs are looked for by 82.6% ,of the managers, with in¬
creased wage rates and more overtime cost being the two main
factors;
One-third of the respondents see a shortage of skilled
"Employment

words.

vaae

28

.

,

23

The Commercial and Financial Chronicle

(28)

Continued from page

27

.V;'.V

The State of Trade and

American

rate

capacity

making

of capacity

98.0%

alent to 2,509,000
with

announced

having 96.1%
industry will be

of

companies

steel

the entire

for

Institute

Steel

and

Iron

of

an

the

steel-

(revised)

The

.•

based

annual

on

weeks in 1957 is

ingot production rate for the

The Industry's

capacity

For the like week

133,459,150

of

month

a

tons

the rate

ago

of Jan.

as

2,493,000 tons.

A

at 2,403,000

placed

was

year

Corn

Electric

Eased

Output

power

estimated at

week ended Dec.

The past week's

comparable 1955 week and

ended Jan.

Mild

of

Railroads

American

week

an

1955

week

and

increase

an

corresponding week in

of

1956,

22,

increase of 30,910 cars or 4.6%

cars,

totaled

$698,389

cars,

Output Cut Sharply In Christmas

.

as

-

Holiday Week

'•

according

output for the latest week-ended Dec. 28, 1956,
to "Ward's Automotive Reports,1' was cut sharply in

Holiday week.

did

^

•

four

Last week

the industry assembled an estimated 99,022 cars,
with .154,832 in the previous week. The past week's
production total of cars and trucks amounted to 111,189 units, or;,.

ing

Last week's

car output decreased
below that of the previous
by 55,810 cars, while truck output declined by 10,736 vehicles
during the week. In the corresponding week last year 105,6.8

in

assembled.

13,057

Canadian
937

trucks.
and

cars

In

1,824

and

cars

output

705

the

last

week

previous

trucks

and

at

Dominion

week

for

placed

was

the

5,750

plants

comparable

built

1955

is

slightly

about

of

20,000

lower

ended

Dec.

Day

and

industrial
ended

failures

Dec.

27

declined

from

214

to

in

174

the

with

1956

the

through

a

year

but

ago,

the

moderately higher than
level, failures

prewar

190 recorded-in the similar

Failures
from

175

occurred

with

liabilities

but exceeded
among small

numbered 21

as

Liabilities in

the

of

143

failures

week

of

$5,000
of

this

the

were

152

down

year

a

that

ago,

with liabilities under

a

8%

in

Christmas

and

new

used

automobiles

106.

On the other

turing casualties edged up to 38 from 36 and
steady at 42. Fewer concerns failed than last

turing, wholesaling and
were

commercial service.

considerably

higher

increased slightly from a year
ago.
In five of the nine

'

in

to

-

than

construction

held

a

year

Central

wives

to

Declines of Previous Week

ol'

^>ef^nec^

Commodities
rye,

beef, colfee,
,

price

raw

level.

to

East

Mountain

of

the

only

had

sugar
cocoa

4-2

to

retail

in

trade

Central

the

\

the

85th

Con¬

foreign/policy

matWarburg —

ters)

James

Warburg; 70 East 45th

P.

Street, New York 17, N.-.Y.
Lending:

„

j

Fundamentals

and Practices—Willis

R. Bryant

Book Company,

Inc., 330 West 42nd Street, New
York

36, N. Y. $6.75.
Carolina's

North

—

industrial

on

State Depart¬

Conservation

of

ment

Tri¬

Research

angle— Brochure

development

De¬

and

ended

-f?3

West

a

the

—

Preci¬

Equipment Co., 3706A
North Milwaukee Avenue, Chi¬

South

-f-4 to

-f 8%.

to.,[-7;

Manual

Equipment

sion

41, 111. (paper) on request.

cago

National

Plans—Report—
Association,
Hampshire Avenue,

Planning

New

1606

N.

W.,

jackets

sports

slacks

and

Washington 9,

Research

year.

The

call

year

considerably
specialties.

holiday
for

dairy

products

and

week

a

ago,

D. C. 30

agement,

exceeded

Spotlight

ago.

slightly,

while
the

from

Federal

Reserve

in

textiles and
prior week.
country-wide basis

volume
level
on

Board's

of
a

wood

N.

for the

week

of

East 38th

Man-

Street,

16, N. Y. $12.

Stock

house¬

some

—

world

New

business
Intelli¬

Warren S. LockAssociates, 1701 K Street,
Unit

—

W., Washington 6, D. C. $60

per

year.

Plans

Ownership

for

Em¬

ployees ;44-Stwdy

as

taken from

ended

Dec.

—

Stoek

the

index

Monograph

newsletter—Economist

that

gence

declined

—

Institute

125

New York

in

Development

and

Corporation

American

—

„

house¬

as

^

foods

frozen

,

New. York

N.

Y.

Exchange,

New York
5,

(paper).

22,

1956, advanced 14% above those of the like period last year. In the
preceding week, Dec. 15, 1956, an increase of 2% was reported.
the four weeks ended Dec. 22, 1956, an increase of 3% was
recorded.
For the period Jan. 1, 1956 to Dec. 22, 1956, a gain of
,3% was registered above that of 1955]

Robert Baird Adds

For

'

week,

Retail

index, compiled by Dun & Bradstreet,

vanced

sum total of the price per pound
foodstuffs and meats in general use and its chief
func¬
general trend of food prices at the wholesale

trade. volume

18%

according
measure

to

20%

to

in

New

above

the

observers.

trade

to the fact that there

York

similar
a

the

period

increase

The

was

City

week

past
a

was

earlier,

year

due

ad¬

in

(Special to The Financial Chronicle)

with

is

Company,

large

Monday shopping day before

Wis.

WAUSAU,
Seim

Bank

First

—

The

Edward

H.

Milwaukee

American

State

Building.

Christmas.

According to the Federal Reserve Board's index, department
store

sales

in

New

York

Allan B.

City for the weekly period ended Dec.
In the

/

preceding

week

For

the

was

registered.

index

period

four

weeks

recorded

in

Dec.

1955.

15,

1956,

ending

an

Dec.

increase of
22,

1956,

1%

was

increase of 5%
1956, the
the corresponding

an

For the period Jan. 1, 1956 to Dec. 22,
a
-

rise

of

5%

above

that
'

of

reported.

*

Salinger

Allan B. Salinger,

22, 1956, increased 18% above the like period of last year.

New York

Stock

in

New

Co.,

nwav

npn

member of the

Exchange and a

Arthur

partner
&

93

York
at

/
,

$14.

to

James P.

moderately

exceeded that of last

expanded

more

and eggs.




(on

gress

week

period

-f6 and-Pacific Coast

overcoats,

Department store sales

the

advancing in price during the week included
and hogs.
Declines occurred in corn, barley,

show the

sought

wares

Moderate

preceding

36, N. Y.

velopment, Raleigh, N. C.
of

South

men's

of

sales

expanded

on Dec. 24, from $6.15 the previous week,

,Pe index represents the
is

Director—^McGraw-Hill
Co., 330 West 42nd Street, New

Memorandum

;

..

Pjrerau,

Mortgage

Although wholesale ordering remained at the level of the
previous week, it was moderately above that of the similar
period a year ago.
Purchases of fill-in merchandise suitable for
Christmas gifts, Spring apparel, and Summer outdoor furniture

$6.18 two weeks ago, the latter
being equal to the -1956 high
set on June 5.
The current level at
$6.12, compares with $5.97
last year, or a rise of 2.3%.

tion

and

buying

The

ago.

Continuing the moderate downtrend
wholesale tood

States

Techniques—J.

Institute, Sydney

cents.

Food

in manufac¬

while

Handbook

.

Shoppers increased their buying of television sets, phono¬
graphs and small electric housewares the past week and sales
were
somewhat above those I of the corresponding 1955 week.

the toll dropped to 28 from 79,

Wholesale Food Price Index Held

of 31

K. Lasser Tax

1955 week.

widened considerably, and moderately

Construction failures,
in 1955 and retailing

regions,

Business Tax

of

.

Atlantic, East ami West North

failures than

wheat,

Atlantic

The

year ago.

the East North Central down to 25 from 33
and in New England
off to 7 from 21. In
contrast, Middle Atlantic failures rose notice¬
ably to 82 from 55 and four other regions reported
slight increases.
Tolls fell below the 1955 level in
six

and

volume

*'•

.

week.

y.n

the

dollar

expanded

C.

D.

■
/.
;
'•
K. Lasser's Standard

volume in jewelry, handbags, lingeries and cosmetics
sharply, sales of women's coats and suits fell somewhat last

rose

hand, manufac¬

year

Washington,

fice,
■■

While

153

major geographic regions failures were
just ended. Most of the decline was concen-

the week

grated in the Pacific States, where

Middle

last

'
/

—

—McGraw-Hill

shopping

;

on

the

of

/J

as

among retailers fell to 73 from

tower

total

Committee

and Currency
States Senate

United

J.

Sharply In Latest Week
last-minute

Staff

—

States Government Printing Of-

37,078 bales for the correspond¬
with 36,616 for the October period
: i

the

to

Banking

the

and

1953-55

from

of $100,000 were incurred
by 18 of the failing
compared with 16 last week.
Trade and .^services accounted lor the week's
decline; the toll

Jhowever,

Report

year.

per

Investors

Market

United

Busi¬

Corporation, 590

Avenue, New York 22,

$3.50

Stock

This,

■

,

Private, Pension

$5,000, which

against 39 in the previous week and 31

Y.

Institutional

of

and

Irp-

Growth-

Exchange,

International

—

South

excess

businesses

N.

dur¬

day.

per

I

5, N. Y. (paper).

1957

A dip also

year.

bales

Stock

Machines

ness

.

35,222

Its

.

.

velopment—New quarterly publication

to

The

increased

program

•

of

York

1954.

in

decreased

last

loan

.

IBM Journal of Research and De¬

the

%/

Central and

mori

size

New

New York

on

the

1939.

or

Statistics, 341 Ninth AveNew York 1, N. Y. 45 cents.

Wednesday of last week was 5% to 9% higher than a year ago,
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1955 levels by the following
percentages: New England -j-7 to -1-11; Middle Atlantic +6 to
-f-10; East North Central and West North Central +5 to -| 9;

in

preceding '

week, Dun &Bradstreet, Inc., reports. At the lowest level of
any
in 1956, the toll was even with the
274 in the comparable
week

trading.

'

of

Bureau

portance for Economic
—

date
now
total
3,500,000
cotton for the November period, accord- '

average

an

upsurge

The

week

Continuing below the

moderate

of Labor,

Dividend Tax Credit

in

only
I

;

nue,

grades.

buying

>

and

*

Labor
4

weeks.

Sales

week

roasters

displayed

Brazil

Technology

partment

accessories, television sets and linens. However, retailers reported
slight declines in purchases of major appliances and furniture.

2,686.

trucks.

Commercial

the

Its

Implications; A selected annotated bibliography — U. S. De-

York

period

Business Failures Fall! in Christmas Day Week
Christmas

Automatic

14, reversing the trend of the previous

and exceeded those of the similar
v

in

above

tons

into

cotton

week

An

10.267

week

r

boosted retail trade considerably above that of a year ago. There
was
a
noticeable rise in the buying of'toys, women's fashion

and

cars

with

quiet

was

in

'
;

New York 1, N. Y. $1.50.

Madison

Rose

year ago.

a

market

weakness

some

steadiness

i
>

Depart-.
Labor, 341 Ninth Ave-

ment of
nue,

Trade Volume Stimulated By Late Christmas Shopping

/

Last week the agency reported there were' 12,167 trucks made
the United States.
This compared with 22,903 in the-previous

week and

with

relative

and

Book, '*

information

labor matters—U. S.

on

buying by local dealers in expectation of a smaller crop
because of participation in the soil bank program.

this year.

week

were

mixed

were

finished

compared

13,057 trucks

"1956 —Background

all

ing to the Census Bureau, averaged

put; states "Ward's."

and

American Z Workers' /Fact

:

hedge

bushels, compared with 52^000,000

45,700,000

/ : Aggregate
entries
bales.
Consumption of

decrease of 66,546 units below that of the preceding week's out¬

cars

-

•

week.
lor

Entries

:

compared
a

of

pressure

\

year

ing the

*

.

under

>

needs.

This

next

,

Car and truck

Christmas

has' expected.

trade

-downward

markets/

at' 624,953;000

crop

preliminary estimate,
and compares with last year's production of
218,017 tons. Lard
prices were mostly steady in moderate trading. Prices for butcher
hogs and sows closed steady to higher as packing interests be¬
came aggressive
buyers at the week-end.
Spot cotton prices were generally steady last week. Accord¬
ing to the New York Cotton Exchange, short covering and pur¬
chasing by mills for price fixing helped to sustain the market,

above the corresponding
or 24.4% above the

137,194

at

coffee

their

tons.

1954.

S. Automotive

U.

Dec.

total

Cocoa

reports.
ended

the

the

on

<.

Winter '

final official estimate by the British
Marketing Board of the Gold
Coast Accra cocoa crop for the 1956-57 season is
225,000 long

Loadings of revenue freight for the week ended Dec, 22, 1956,
18,263 cars or 2.5% below the preceding week, the Associa¬

Loadings for the

higher than

wheat

of

trading volume in grain and soybean
Chicago Board of Trade continued to decline last

contract

spot

.

Preceding Week

were

tion

forecast

major .influences

the-Winter

edged

Coffee prices
the
The

2.5%

have

production

firmer tonej/i response to the USD A announcement last Thurs¬
a 1957 quota of 8,800,000 short tons, which was somewhat
below trade expectations. The rice market was
quiet and steady
at the
week-end.
"V

1, 1955.

Under

first

day of

1,771,000,000 kwh. over the week

Loadings in Week Ended Dec. 22, Edged

>

a

fill

Car

in

range

types of hard wheat bakery flours remaiiied
inactive last week as most buyers still held fair to good balances.
Export flour inquiries were- small with scattered buying eonfined mostly to small lots
by Latin America. Raw sugar developed

output fell 1,031,000,000 kwh. under that of
it increased 445,000,000 kwh. or 4.1% above

previous week;

the

The

Demand

.

11,196,000,000 kwh. a modest decrease below the
22, 1956, according to the Edison Electric Institute.

the

wholesale

narrow

average

the

the previous

distributed by the electric light
industry for the week ended Saturday, Dec. 29, 1956,

was

prices

on

week.

The amount of electric energy
and

to

placed
was

Daily

futures

Holiday Week;

Christmas

in

and'the

failed

which

weeks.

ago

tons or

.

a

as
the
government
implemented in recently announced
policy of making sales of the yellow grain to exporters.
Rye
prices continued to rebound from the sharp declines of recent

pro¬

the actual weekly productipn
97.6%. The operating rate is pot
comparable because capacity is higher than "capacity ii^ 1956.
The percentage figures for 1956 are based on an annual capacity ,pf
128,363,090 tons as of Jan. 1, 1956.
duction

daily

in

move

sales

1957.

1,

101.3% and

was

1957

report

bushels,

,

♦
•

Bradstreet

to

for- 1956

wheat for

week ago.

a

&

week

estimates

of

average

tons of ingot and steel for castings as compared

94.3% of capacity, and 2,322,000 tons

Dun

continued

,

-

that

the

Thursday, January 3, 1957

.

Commodity Price Index Confined to Narrow

commodity price
the abbreviated
just ended.
The index registered 300.42
(19301932=100) on Dec. 21, as compared with 299.79 a week earlier.
The latest figure compares with 280.15 at this time a
year ago.
:
Grain prices were irregular with both wheat and corn show¬
ing little net change for the week. :The final government crop

beginning Dec. 31, 1956, equivr-

week

for the

The

index

>vith

.

Range In Christmas Holiday Week

holiday

in the United States

Production of steel for ingots and castings

.The

^

Industry

this-ycar is totaling around 115,000,000 net tons, compared
the record of 117,036,085 tons
produced in 1955.:
y
operating

Wholesale

•

.

the

Wiesenberger
City,
aee

passed

of 49.

;

Number 5600

185

Volume

.

.

The Commercial and Financial Chronicle

.

(29) " 29

notice

Continued from first page

this

on

chart that

the three groups
were

natural

of

none

creased

with best records

resource

because

earnings

lower

rose

deficit to $1.65 profit.

from 4c

but

groups;

In

tion.

We should remember, too,

flation.

An

Urn^ed States^and
thatrnTThe long

the

in

still

However, the trend has
slower recently, and in the

lasft five years the rise in
or

giving

ica

per. year.

1%

many

There

:-

.

means

things to

living."'The

power

a

essence

lar

and
can

-

and

/

are

does

would

influenced

that

own

worth

be

now

The

also

for

the

record

by

(computed

groups

the

five

of

years

wh>n the government began to remove price controls. It is
instructive to see how very difthe

ferent

on

subject /of inflation is a danger
to Sound investment management,

market

action

each

of

during the separate
periods of inflation. in the same
natioji* In, both periods, however,
the best gainers were those groups
whose earnings gained most- -In
group

was

s°™e

case?,-put

not

States

termittent

fng neural r^OurSs ^V'
increase

depends

this

nrosnect for

only if
expecting a-

on

below

its

nate

with,.

stock

S.

U.

35%

price

great

to 85%

high.

other times far below.

at

or a

become

about

It

the

,

the five nations where
prices increased most, only
one nation is included^also among
the five suffering greatest infla¬
Among
stock

of maximum inflation dur¬
ing and after World War I from
June, 1915 to June, 1920.
Those
investors planning to buy natural
resource
stocks because they ex¬
pect

CHART i
-50%

•

'

'

":'

f\

•

.
,

.

+

+ 100%

0

-.-iiVfl

'
.

,

,r

;

•" ' /' '

V ••

^

4- 300%

200%

1

I

J.
Germany

inflation to continue should

1

Selection

buying price .for

....

n

to

to

of

not

vague

on

influences

'"which

foresee

1932

order

earnings prospects for each indi-

of

a

share

Square

D

a

in
in-

IN

CHANGE
linn

STOCK PRICES

.•

..

For the

Years of Maximum

5

Cowles Commission

SOURCE:

States

h

Inflation

rcpe

Cost

of

-

Canada

the 5 Years of

For

After

Belglun-Luxen,
.•••> f *'

i

•

P—— "

;

Sweden

Machinery
Sugar
Office

IfHIflflP™111

England

—-

_

Equipment

______

+

59
58

Army Reserve.

+

+

41.6

has

35

.

'

'

"

1

'

Portugal

.

J

Him

«

75

+

——

-

SHARE

IN

COST

1948

Egypt

+.r "

OF

LIVING

+

STOCKS

-

Internat'l

+

28

.:~r

Fquipment—
Misc. Manufacturing-

1955

Retail Merchandise

Drugs

Food & Beverage.
D.

—

—

Aircraft ManufacturingAuto

Fund

Railroad

—

CHART 1

Lead &

wx r\ vx

v»

v,

*

the

x

Institute

A f 11

/x

New

of

Foreign Policy As¬
a

trustee of Barnard

College.

|

Now Thill Sees. Corp.

+ 14
+13

(Special to The Financial Chronicle)

7

+

6.2
6.1

4

MILWAUKEE, Wis.—Thill Se¬
curities
Corporation,
704 North
Broadway,

been

has

formed

to

continue

of

+

1

Lewis

—

1

Treasurer; Mrs. Carol Thill, Vice-

Electrical

Heavy

Equipment—

Financing

7

Auto

—
—

—

the

Lewis

Thill,

business

Officers

President

are

and

President and Secretary.

Alfred B. North
Alfred

B.

—

20

—

22.5

investment

—

Alfred

45

Air Transport——

—

27

48

Railroad

Fnuioment

—

34

62

Motion Pictures

—

43

—_

Thill.

D.

D.

—

Mining

investment

18

—

Fquipment

Tobacco

2
8
17

—

Machinery

Gold

—

*

Church

and

sociation and

awav

—

Zinc:

n

York

5

Packing

—

Paper

rt T

3,

30

—

Mining & Smelting.

as

+

24

—

once

Bl:3g. Material & Equip.

16

——

Assistant

and

+

1
3
8

State

as

Under Secretary of State for Ad30
minstration. He is a director of the
29
28/; Milbank Memorialrx4- i 4*n 4a the ^.T
Fund, 4' SeaI
/-»Ix
T

men's

—

—

i—

he

leave from

on

once

of

II

Textiles

—

Copper
Monetary

Secretary

31

+

Utilities

J.

business,'

War

government in

+ 20

—a

Copper, Lead & Zinc—

Banks

Electrical

iiimiiu




+

—

Tobacco

KHBBB
Africa.

+
+

_.

Machinery.—

-

Utilities
Union S.

61
59
50
49
.33

PRICES

SOURCE:

wm 1

63

+

Equipment

'

the

in

Washington while
his

27
24
+ 23
+ 21

-

World

since

served

+

Investment Trust.

Railroad

Twice

+

+

Farm
r

!

*

a

+

All Stocks
AND

^

Equipment
Equipment

*r

D. J. I. A

Miscellaneous Services—
CHANGE

HHiiih

India

r

+
" +
+

Rubber

INDUSTRIAL

Denmark

Farm

79

Chemicals

HHHIAiiiiiiiiiiiii

HHiiiiiiiiiiiiiiiiii

Office

82

Rubber

Australia

"Paper

+

Oil
'

+

.

+

Food

Spain

Insurance

Retail Trade

.

Peru

LIVING

OF

Leather

"

being

Steel

Fertilizer

■HUP

Switzerland

in

for nearly four years
appointed a brigadier
general in January, 1.945. He is
now a major general in the active

+ 33

*

Vice-President

a

Chemicals.

+

74
+ 73

Ex-

overseas

and

%

D. J. R. R

93

as

75

Liquor

+

and

+

4-113
+106.5
+104

+103

Stock

During World War II he was
active duty in the Army, serv¬

ing

Stock Avgs.

—

Steel

mm-

Morway

_

\

Stock Exchange,

Secretary of the Exchange in

on

War II

+ 116
„

COST OF LIVING——_

■Br™™1

Metherlands

World

Industry/

COST

—/

Vice-President ol

1939.

Maximum Inflation

Barron's Group

SOURCE:

4-134

Household Equipment

former

Mr. Saltzman became associated
with Goldman, Sachs & Co. on
Sept. 17, 1956, prior to which he
was a partner for seven years in
the piivate investment, fitm of

1938

PRICES

February, 194(5— February, 1951

4-186
4-146

Textile

Saltzman,

1, 1957

as

"B"

Oil

-

E.

^

IN STOCK

CHANGE

-f220

--

Charles

United States Government official

change from 1935 to 1949, serving

Shipping & Shipbuilding
Street Railway

living

|

:

In Goldman, Sachs

staff of the New York

Coal

Mexico

•

Saltzman Partner

finds

%

Industry—

lllllllllllllllllllllllllllll

the best kinds of investments.

pose of providing the means by Henry Sears & Co.
A graduate
which
will be available of West Point and , a;-former
later to buy real bargains in the Rhoades Scholar, he was on the

<

Series P

trends,^ and that popular .theories
are..not safe- guides for selecting

permanent Holding (except of was admitted^ a general partner
course, convertibles or the index in Goldman, Sachs & Co., 30 Pine
bonds recently designed in Eu- Street New York City, on Jan.

Auto

Austria

the

himselfagainst terrupted by deflation, that drastic

protect

teetion aSainst a rising cost -of and a former
Hving should-not buy bonds for'the New York

During and After World War I
June, 1915 — June, 1920"

Japan

United

of

these popular moods by develop- declines in stock prices can occur

'

"A"..

iiiiniiiiiiiiiii

'' 7

r

analysis

m

CIIART II
i

farsighted

loaded with common stocks after vidual company.. Economic trends
•' of / °Ptimism
and - "sing, do point to 'much higher prices
5KS £3
*«? Uf- ^
1
+
tln?e? ot

iiiiiiiiiiiiii

Italy

influences

over-

are

$3 90

from

22c

to

price

The

in

companies

decreased

fn

Trance
■

of

and

especially for inflation proteetion). However, high-grade
most likely to enjoy the greatest
bonds are very useful as a reserve
increase
in
earnings per share. fund accumulated by profit-takThe
price of "Lake Shore went
during the upper phase of a
down as mentioned above because stock market cycle for the purmultitude

1955
Finland

for in-

of best shares

popular ideas like "inflation" and
"natural resources," but on continuous and careful
study of a

share

+'450%

multitude

a

man-

thinking

clear

over-

,

dpnpndc

vpqfmpnt

earnings

>•!,

requires

^enable long-rangeprogram despite .longerrrange inflationary

for the five

Cowles Commission)
years

the cost

as

ment requires that the investor tionaiy trends are sometimes! in-

-

little, if any, correlation be¬
degree of inflation and
changes
in
stock
prices.

and the index
prices has risen

much

as

as
listed

of

In conclusion -investment

gold has remained unchanged for ,*ng a
23 years, shares of gold producers
bavlng the fortitude to
from 1948 /to 1955 and also
Share Prices by Industry Groups have been "poor' investments; Oil lollow it.
Every investor should
the change in stock prices in/those
pbor
investments tiave a comprehensive and longnations. In the United States,, in¬ './ -Chart II illustrates the' fact that shares " were
bf ' companies*
owning from 1926 to 1940 when the price range investment program, clearly
flation was only 11"%/ whereas shares
stock prices increased 161'% ; but "natural"resources are not always of oil went down from $2.04 to outlined in writing in all details.
Among the/inflations studied,
in the Union
of
South Africa the best shares to. own even when $1.02 a barrel; but because after
there was an inflatiofi of
36% „a nation has a trend toward in¬ World War II the price of crude-, we have found pone in which the
oil increased 141%, prices of oil ownership of bonds and mortgages
While gold stock- prices declined flation. This chart shows the price
and
decreases
for
29 shares have led the field as shown provided good protection.; Inves26% and industrial stock prices increases
•
•
.
.
.
tors interested primarily in progroups
(computed
by in Chart II.
40%. On this chart you will notice industry
tween the

stocks;

agement

years

very

'

we

the

of living.

,

human nature to

of in-

1895-99

their holdings

as

of railroad stock

are
carried someabove" intrinsic value

far'

mo-

To illus-

however,
in

that

less than half

of pessimism,

waves

high.

protection,
note

industrial

Long

prices

times

Jhouid

the

stock

preceding

the

at

are

as

holdings of investors in listed rail-

of investor optimism alter-

waves

stocks

scarcitv

Often

W
cause

the

are

high and the prices of

*holdlngs affer watchmg pnc^ de' loose talk about inflation, mvescline fpr years. Successful invest-/tors should remember that. irrfla-

-

therS

whether

surnlus

a

which

the

market road stocks were'several times

seven

declined from

but

stocks

is

earnings

in

in

index

period

this

now

co6dr'years

investment

there are reasons for
large

cycles

during

been

many

average

again the difficulties

should

for

industrial

on

as

flation

trend

the

as

1895-99"

years

16 times

ment

in-- trate

60

Nevertheless,

js

the

13 times

the

high

as

industrial

an

living for

The cost of living/is

times

dividends

•

in

-had

upward

3.7

and has almost quadrupled,

years

an(j

living

has

behind the cost of

during" for:

•

-

able to reinvest

was

many

years.

different

aY' tms ln~ -confident and sometimes get

ShareTofncomDLiesS own6

eroups

selections for

is

nation at
7

-

•

of i

cost

■

in

same

shift

and

In the United States and
"other nations common
stocks have .eventually proved to
be good protection against "inflation,
although
sometimes the
prices and dividends have lagged

declines

same

periods

maximurh^inflation after World there have
War II

much

the

not

are

inflationary

crowd

1946-49.

in

drastically even in a nation with
a
long-term trend toward inflation. Secondly, history teaches us
that the best kinds of investments
to

cycle.- The

such funds to great advantage
three years later. Similar situations occurred in
1937-42
and

general level of

sometimes

nations nor in the
such different times. - •

then,,

First

reasons.

the

prices

United

shows

stock

Barron's)

earnings
taxation,

but
also by

at

'

II

Chart
of 31

influence the

earnings;

Mines

1932,

price

average

$l,2UU,UUU.

many

often

of

its

two

controls, business 7 cycles,
the price
socialization, competitive changes,
management changes, technolog¬
ical changes and by a multitude of
The purpose of /this article is to
other, strong influences. Although
emphasize that- inflation.'is only
a
nation may have a long-term
one. of many factors w.hich influ¬
trend toward inflation, neverthe¬
ence
stock prices. This point is
less, corporation earnings cab de¬
illustrated \ by i Chart
I, •- .which
and there can be drastic
shows the amount of inflation in cline
declines in share prices.
/
*
each of 23 nations during the 7
thinking

loose

Recent

*

as

Shore

price for

average

fact

Co., an electrical manufacturer,

at

influence stock prices,

of in¬

Various Nations

Inflation in

D

road to suc¬
management;

applies just

Lake

the

stock

the

frorp stocks into safe

bonds in 1929

coun-

to

difficult for two

in-

been

such
investment on Oct. 1, 1956, would
have been worth only $1,500. If
such money had been invested instead in 1932-in shares of Square

factors which
inflation is
less important than dividends
earnings. Of course, inflation
the

Among

level

-,'V

easy

investment

and this rule

loss in the purchasing

of cash..

no

in

had

is

work

of

the

funds

some

investment

an

protect
his
client's invested wealth, insofar as
possible,
against effects of. the
continued, inflation,
which
we
foresee. The work is complex and

Shore

Lake

was

$10,000

the

stock

1920,

time

If

vested

during inflation as at other times.

people; but for the purpose
of this article. I will define infla¬
tion as "an increase in the dollar
cost of

is

in

cess

many

flation is

since

period

year

that

at

of

selor's

-

stronger illustration is

even

Mines.

the cast prices actually declined 11%,

has averaged only

Inflation

•

•

buy gold mining stocks in 1932
fear of inflation. The largest
producer of gold in North Amer-

frdm January, 1946 to Janu¬
ary,
1948, which- witnessed the
maximum inflation for any two-

higher.
been

in., those

hand,

Conclusion
Part

for

years

the cost of living will be even

run

other

the

predict

worst

resource

to

,

we

with

natural

to remember the rush of investors

that the continual inflation and prices rose most there was very
little " inflation;
whereas in Au¬
prospect for more inflation is not
stralia, with the second greatest
a new condition. The prospect for
inflation is no greater today than inflation, stock prices rose very
little.
;
\
it was in 1937, when the D.-J. In¬
Such disparities can be found
dustrial
Average declined
from
also in the history of the United
194 to 99, and not even as strong
States. From the low of Septem¬
as it was in 1942 when this stock
ber, 2953 to the' high in April,
price average sank as low as 92 in
1956;
stock'1 prices more than
April, which figure is less than %
"oubled, the steepest rise in a
of today's stock price level.
For
score
of years;
but during this
more than -2D years, we have bee
time the purchasing power of the
predicting tm^c^ntinuation of in¬ dollar did not change at all. On
flation

those

were

groups.

stock

where

Germany

of

three

records

against

go

^

all

Slock Pricesr During Inflation

phase

who had enough fortitude to

man

.

...

B.
Dec.

attack.

North, head of the
counselling
firm
of
& Co., passed

North
31

following

a

heart

SO

x

(30)

iix

t

u./nx

ji

tnu/tutui
^

,

* INDICATES

NoW in
•

•

Inc., Minneapolis, Minn.
of common stock (par one

Allied Resources Fund,

Dec.' 14 filed 400,000 shares

/://'*/

: *

,

Dec.

filed

14

be supplied

ceeds—To

retire

$50,000,000

•

Office

-—

901

Underwriter—Lackner

&

Sherman St., Denver,
Co., Denver, Colo.

American Federal Finance Corp.,

Colo.

MonoRail

and

general

corporate

Cleveland,

(1/7-11)

O.

due

Proceeds

bank

seven

Underwriter

(par

debentures.

Price

To

—

Northwest

—About

be

supplied

$4,100,000

will

by

be

ceptance

to

acquire

chasers thereof

estate

of such

acquire

opportunity to rescind their purchases

an

shares.]

to

accompanied by
•—To

increase

System.
•

a

the

of

clamp-on automobile hitch.
number

trailers

of

Price

filed 964,454 shares

of

for

Purpose

rent

in

(1/15)

&

Co.

stock

common

by if at $1.10

share.

per

Armco Steel

(par $5).

porate

At

expansion;

equipment;

Underwriter

purposes.

—

and

a

Corp.

(1/10)

and

maximum of 1,092,925 shares of common

(par $10),' but not less than 1,087,783 shares, to be
offered ,foi\ subscription by common
stockholders of
record Jan. 9,
1957 at the fate of one new share-for
shares held; rights to expire on Jan. 24, 1957.
Price—To be supplied by amendment. - Proceeds—For
10

expansion program and working capital.
Smith,, Barney &; Co:, New York. •
~

Underwriter-

.

installation

of

operating capital.
Inc. ' .f '
:
■/ ;

machinery

'

.

'

•

-

v

*

Atlantic
12

City Electric Co. (1/23)
filed- $10,000,000 of first mortgage

,

.

■**

.

•

»

due

Inc.; The First Boston Corp, and Drexel & Co.(jointly);
Eastman Dillorr, Union Securities & Co.-and
Smith, Bar¬

& Co.

(jointly); Blair'& Co. Incorporated; White,
Weld & Co. and Shields
Ca (jointly)! Lehman Bro¬
thers; Blyth &r Co., Inc. Bids—Expected to be received
up to 11 a.m; (EST) on Jari. 23 at Irving Trust
Co.,
One Wall St., New York 15; N. Y. v

amount:

Proceeds—To-retired indebtedness of the com¬
pany to its affiliates for-money borrowed for
working

capital.

Underwriters—Hallotvell, Sulzberger & Co. and
Charles A. Taggart & Co., Inc* both of
Philadelphia, Pa.,
and Weill, Blauner & Co., Inc. of New York.
Automation Development Mutual
Fund, Inc.
Aug. 24 filed 300,000 shares of common stock. Price—At
market.. Proceeds—For investment.. '
;

Office—Washing¬

Distributor—Automation Development Secu¬
/

Inc., Washington, D. C.

■-/

J'"

-i*

.

(par $2) to

working cap¬
Co.? P. W. Brooks & Co.,,,
Auchincloss, Parker/& Redpath, all of New
-t
'
-;•;•/<
•-,/•- /_ r"
l

-

Dec/ 31 filed $1,200,000 of 4% subordinated
debentures
due Jan. 1, J966; 10,000 shares of
4% cumulative pre¬
ferred stock (par $100) and
150,000 shares of common
stock (par
$5)^ Price—At principal amount or par value.

Proceeds—For working capital. Office

—

Underwriter-^-None.

Ithaca, N. Y.

for

—

10 cents per share.

—

For

Chicago




offices

working capital.

Drexel Furniture
Co.,

common

stock, of

common stock

t

to -/Texas- industries, Inc.r which owns
Freiberg's' outstanding common stock.
Price—To be supplied by amendments Proceeds—From

about

75%

of

'

sale of units to retire short-temi loans and loar

woriting
capital, etc., and from sale of debentures to;Teecas iridusr
to retire;

the

a

subordinated ^promissory- note payable

latter firm.' Officer-New

Orleans, La.( Under¬
writers—Howard, Weil, Labouisse^ Friedrichs & Co., New
Orleans, La.; "Rauscher;;Pierce 'Sc Co., Inc., Dallas?T^xas;.
and Russ & Co., Inc., San
Antonio, Texas.., Offer ing—
Postponed.
4
>
„
Juices,

Inc.

-.

.

.

Underwriter—Sterling Securities Co "-Los
.

r

•;

'

—

if General Shoe porp.,„ Nashville, Tenn. "
Dec.

:

26 filed

72,000 .shares of dommon stock (par $X)- to
the company's Employee Stock Pur¬
chase Plan; 36,000 shares to be offered under its
Savings

ona

be

ex¬

offered

under

Fund-Employee Stock Purchase Plan; and 72,000 shares
to be offered under its Special Stock Purchase
Plan/, -'
General

NW.

(par $2.50)
and-class B

Heritage Furniture, Inc.,. High Point,

Vz

purchase 160,000 shares of participating - preference
stock, to be offered in units of $500 of debentures and 40
Price—$500 per unit. Proceeds—For'expan¬
sion and working captal.
Underwriter
None named.
Offering to be made through selected dealers. ■*"

Drexel, N. C.

Jin exchange for

; z

warrants.

and acquisition of properties and1
Underwriter—Columbia Securities

Dec: 12 filed 190,000 shares of
common stock
to be offered

f

to

capital.. Under¬

Proceeds

^

Credit, Inc., Washington, D. C.
Aug. 17 filed $2,000,000 of 6% subordinated sinking fund
debentures, due Sept. 1, 1971, with detachable warrants

Co., Denver, Colo.
•

all

-

%

General

ploration, development

to

Underwriter—None;

Angeles, Calif.

pur¬

cent).* Price

Private IVires

.

Marion, Ind.

common

Douglas Corp., Fort Collins, Colo.
July 27 filed 4,000,000 shares of common, stock
(par

mort¬

(letter of notification) 300,000 shares of common
Price—At par ($f per share).
Proceeds
'For
working capitals Office — 1115 South Washington-St.,

to purchase 500,000 shares of
common
stock
(par 10 cents) to be offered for subscription
initially by

further acquisitions and
working
writer—To be named by amendment.

Cleveland

Inc..

notification) $250,000 of 6% first

stock.

warrants

one

|

to be sold

tures

Fruit

for

San Francisco

'

(pai? 10
Proceeds—For" in vestment.

Dec. 3

share at any time prior to Dec.
31,
share). Proceeds—To repay mortgages, to
$1,312,500 of five-year 6% sinking fund
debentures,^and

Philadelphia

v

Freiberg Mahogany Co. ^ •
It filed $2,000,000 of subordinated debentures duo
1971 and 450,000 shares of combaon stock (par 10: cents),
of which $1,500,000 of debentures, and- all of the stock
are to. be offered- publicly, in units of $500 of debentures
and 150 shares of stock; the remaining $500,000:of deben-,

to

,

1957 at $2 per

Pittsburgh

share,

Ford Gum &, Machine Co.,

tries

Diversified Oil & Mining Corp.,
Denver, Colo., Aug. 29 filed 2,500,000 shares of 6% convertible noncumulative preferred stock, first series
(par $1), and

chase

v

Fund, Inc.

per*

Oct.

&

-

$100/ of

Price—At-face amount. Proceeds-^For
working capital. 'Office—127 North Sage St.; Toecoa; Ga.
Underwriter—None. ' "
'-TTi
*
: ^

i

Cooperative Grange League Federation
Exchange. Inc. ,r
'"•••■'> •,

units.of

per unit.
expansion and general corporate pur¬
^Underwriter—None. '
'
■
-z

ated debentures.

r\';

Underwriters—Allen

Inc.' and

in

Price—$115

pec.T9.(lettei\Of notification)-$100,000 of 8% subordin¬

stockholders at

ital.

>

gage

'

stockholders in units of 25 preferred shares
and
a warrant to
purchase five common shares. Price—$25.50
per unit (each warrant will entitle the holder to

Boston

individuals,

if Franklin Discount Co.

common

New York.

Evju is President.

For

—

machines.

,/'

Price—

ing capital.: Office—Hoag and Newton Sts., Akron, Nv Y.
Business-^Manufacturing chewing gum and self-serfice

the rate of one new share for each 10 shares held
as of
Jan. 10, 1957; subscription warrants to
expire on Jan. 28,
1957. Price—To be supplied
by amendment. Proceeds—
For additions and
improvements; aqd for

York.

Corp., Philadelphia, Pa.
$600/000 of 6% convertible subordinated
debentures due June 15, 1968..
Price—100% of principal

"

(1/10)"

Inc.

filed

rities Co.,

.

bonds due_ 1962...to ,1967^
mclusive; Prke—100%^ of
principal amount. Proceeds—For machinery antf^woric-'

-

•

Dec. 18 filed 170,000 shares of common stock
be offered for subscription
by common

Atlas Credit

ton, D. C.

•

Continental Copper & Steel Industries,

1987.: Proceeds—To repay bank loans and for construc¬

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.

'

ac¬

shares: of

*

Underwriter—None.1

other

Dec. 18 (letter'of

;

tion program.

June 11

•

2,435,000

to

Bateman, Ltd., Palm Beach, Fla.
Offering—Temporarily postponed.
t
/ " '/
;
i

Underwriter—Alex. Drown & Sons,
•

subject

Underwriter—Frank B.

as

v

I

is

(par $l) ;to be offered to employees, custom¬

cents)*.vPrice—$5

if Concord Fund, Inc., Boston, Mass.
Dec. 28 filed'(by amendmertt)'
250,000 additional shares
of common stock. Price—At market".
Proceeds—For in¬
vestment.

bonds

*1

Shopping

others.

least

at

of /Pacific

shares

share). Proceeds—For construction of
plant and to provide working capitaL

Florida Growth

•

—

offer

-

Dec. 26 filed

accumulative certificates.

"/'.■/

eight

The

Nov. .23 filed 2,000,000 shares of common stock

Dec."20- filed- $3,000,000 of 6-%-, convertible
debentures
due Jan. 1, 1972. Price—To be
supplied by amendment.
Proceeds
To acquire stock of Talbottown
Center and

stock

poses.

Community Research & Development, Inc. (1/15)

Baltimore, Md.
if Associated Fund, Inc., St. Louis, Mo.
>
*
(by amendment) 25,000 additional full paid

r

or '

?14

each:

debentures and 10 shares of stock.

cor¬

and

-

per

and.certain

ers

Proceeds

equipment,

for

holders

by

($10

par

mon

Industry Developers,

—

■

/.
.'V

,

Flick-Reedy Corp., Melrose Park, III. ' .■
V. t
Dec. 28 filed $1,200,000 of 6% registered subordinated
debentures due "Feb. 1, 1972, and 120,000 shares of com¬

None.

and

Underwriter

.

stock

Underwriter—None. Robert E.

<

other

B

common-stock.-

manufacturing

Chinook Plywood, Inc.,
Rainier, Ore.
Sept. 4 filed 200 shares of common capital stock. Price—
At par ($3,000 per share). Proceeds—For
acquisition of
a
plant site, construction of a mill building, purchase

stock

ney

\Y

; t
^1

"

.

Offering—Date
-

Co.

Flakewood Corp., San Francisco, Calif.
Nov. XA filed 100,000 shares of common stock.

—

Dec. 18 filed

Dec.

super¬

Incorporated, Philadelphia

" " ** ; ■

.

development;

Underwriters—Eastman, Dillon, Union Securities & Co.,
New York; and Stephens, Inc., Little Rock, Ark.

•!

Fruit

Century Controls Corp., Farmnlgdale, N. Y.
Aug. 27 filed $600,000 of 10-year 6% debentures. Price—
90% of principal amount.
Proceeds—For research and

the

To be supplied by amendment. Proceeds—To
Tri-Continental Financial Corp., the selling stockholder.

each

Blair

—

indefinite.

;

Arkansas Louisiana Gas Co.

Dec. 21

Penn

develop additional sites for related real
activities, and for general corporate purposes.

selected

sons

fleet of rental trailers each

a

a

New York. Latter has agreed to
purchase an addi¬
tional 300,000 common shares and reoffer them to per¬

$3,000,000 of U-Haul Fleet Owner Contracts
owners

and

and

Underwriter

be offered to

sites

and

if Arcoa, Inc., Portland, Ore.
Dec. 26 filed

center

Gas

Eternalite, Inc., New Orleans, La. (1/15)
Sept. 24 filed 200.000 shares of class A common stock
(par 50/ cents).
Price—$4.50 per share.
Proceeds—To
repay loan; for maintenance of and increase of inven¬
tory; for development of branch offices; and for research,
laboratory tests, and testing equipment. Underwriter—
Vickers Brothers, New York.
*

market adjacent to one of them; the balance will be used
to develop shopping centers at the seven sites and to

shopping

Underwriters—W; E.

Ohio, and Kalman & Co., Inc.,

'"?/'/,

Natural

Pacific "^Northwest.

amendment.

used

Fulton, Reid & Co.,' Inc.,
Cleveland, O. [Registration also covers 30,400 shares of
common stock
(par $1) already issued and outstanding
and being registered for the purpose of offering the pur¬
—

Paso

of- common

*

be named later.

Aug. 1, 1971, and 1,600,000 shares of common stock
one cent); subsequently amended to $4,500,000 of

40,000 shares of $1.20 cumulative convert¬
ible preferred stock, 1956 series. Price—At par ($20- per
share). Proceeds — For working capital and to reduce

Office—St. Paul, Minn.

Hutton-A Co., Cincinnati,
St. Paul, Minn.
•

t4/filed 5,2(35,952 shares of common B stock (par
$3) to'*' be offered in exchange for common stock- of
Pacific Northwest Pipeline Corp.- on the basis of

Under-

purposes.

Price-^tTo be-supplied by .amendment (expected at about
$15 ta-$16 per share); Proceeds—For general corporate 1
purposes.:

Dec.

Centers Corp.,

18 filed

loans.

other

'

Economics Laboratory, Inc. (1/11) v. V'..'"'; ^
12 filed 100,000 Glares
(if;common stock (par $1).

El

drilling, working

capital

writer—To

•

.

;

Philadelphia, Pa.
/ '
July 30 filed $8,000,000 of 5^2% sinking fund debentures
Co.,

acceptance of not less'

upon

Dec.

.

shares to promoters. Price—At par ($1 per
share).' Proceeds — For equipment, exploration,

Fain is President.
American

contingent

are

8*0% of the 665 outstanding class B shares of-Herit¬

filed

Burma Shore Mines, Ltd., Toronto, Canada
July 26 filed 600,000 shares of capital stock, of which
500,000, shares are to be offered publicly, and 100,000

Killeen, Texas

and to extend the company's operations into
the field of new car financing. Underwriter—None. J. J.

•

Furniture

C./y-'"V" '/V~

paper

Dec.

Morganton

Brewster-Bartle

Brookridge Development Corp.
(letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For work--,
ing capital. Office—67-12 62nd St., Ridgewood, Qudens,
N. Y.
Underwriter—Wagner & Co., New York. Offering >
—Expected today (Jan. 3).
■/.;-/ '•

Sept, 5 filed 40,000 shares of class B common stock (par
$5) and 400,000 shares of preferred stock (par $5) to be
offered in units of 10 preferred shares and one common
share. Price—$55 per unit. Proceeds—To purchase used
car

than

•

Proceeds—For mining expenses and

properties.

of

Morganton share.'

—

Oct. 29

Price—10 cents per share.
development of oil

(par five cents).

stock

.

Minerals, Ltd.
Nov. 23 (letter of notification) 3,000,000 shares of com¬
stock

common

age and of the 80,000 common shares of Morganton; and
Drilling Co., Inc. (1/21)
tw //
not less than 64,992 of the
100,000 shares of common stock (par $2).
70,910 outstanding class B
shares-, pf Heritage. / The offers will
To be supplied by amendment.. Proceeds—To *
expire on Jan;f 18,
1957, "unless extended; Soliciting Agent-—R. S. Dickson
selling stockholders. Underwriters—White, Weld & Co., /,
& Co., Charlotte, N.
New York; and Rowles, Winston & Co., Houston, Tex. /:
;

Amalgamated

mon

for

Price '—

short-term bank loans
Underwriter — The First
<
_

'

Boston Corp., New York.'

and

These offers

Dec. 21

Pro¬

by amendment.

of

and for construction program.

C.,

Co., -Morganton, N. C., on the following basis: V/z shares
of Drexel stock for each
Heritage share and three-quar'-^
ters of _a share of Drexel stock for each

—

debentures

sinking-fund

of

$125,000,000

Price—To

1982.

due

N.

White, Weld,/& Co.; New York;; and*
Rowles, Winston & Co., Houston, Tex. :
<* £

(1/9)

Aluminum Co. of America

!

(1/21)

Inc.

Nl?

Underwriters

^

.

Drilling Co.,

filed

ISSUE >-

REVISED

$2,000,000 of 5% subordinated convertible
debentures due Jan. 1, 1972.
Price—To be supplied by
amendment. Proceeds
For drilling oil and gas wells.

market. Proceeds — For investment.
Underwriter— Fund Corp., 523 Marquette Ave., Minne¬
apolis, Minn,

21

ADDITION*

PREVIOUS

• ITEMS

,

Brewster-Bartle

Dec.

Price—At

cent).

SINCE

-

Telephone Co. of California

13 filed 500,000 shares of, 5%

(1/10)

/

cumulative" preferred
(par $20)/ Price—To be'supplied by amendment.
Proceeds—To repay bank loans and for new
construestock

Volume

185

Number 5600

.

The Commercial pad Financial
Chronicle

.

.

(31)
tion.

Underwriters—Paine, Webber, Jackson & Curtis,
New
York, and** Mitchum;*iJonbs & Templeton,- Los.
Angeles; Calif.
/ *■ ■
*' "•/•-/■ -//;.•
*7

General

"Telephone Co. of Michigan

(1 /10/

common

1

Dec. 18 filed 160,Q00 shares of $1.35 cumulative
preferred r

stock,.

2,950

debenture.

shares

of

units of 50

class

Price—$10,000

B

unit.

per

and

year-round

Nov.

Guardian

building,

by*

■

ing stockholders.
;

Corp.
:
notification) $250,000 of 6% convertible
Dec. 1, 1966 being offered for
subscrip¬
stockholders

common

of

record

Nov.

5,' 1956

and Ball,

Southern Pacific

Oct.

2

filed

240,000

per

Hub

Oil

'

shares

ISSUE

Manufacturing
(Morgan

Scovill

Common
Inc.)

•'"Stanley & Co.)

Sunrise

Fund,

Corp.)

V

$2,500,000

January
MonoRail

7

(Monday)

Co._

three
each

Union

(Alex.

shares

class

of

A

Ripley

(Lee

Blair

1977.

class

Securities

of

share

Hilton

of

Savoy-

/

; ■;

'

Price—To
reduce

be

supplied

short-term

by amendment. Proceeds
Underwriters—Lee Hig-

loans.

ginson Corp. and White, Weld & Co., both of New
York;
and William Blair &
Co., Chicago, 111.

Continued

(The

First

Corp

Boston

on

page

Debentures

Corp.

and

Lester,

Ryons

to stockholders—to

Dean

Witter

&

Co.)

January

be

about

24

Stephens,

Inc.)

$3,000,000

65,000

Weld

&

Co.;

be

to

Ltd.;

Co.,

Brothers;

Weld

&

&

(Tuesday)
..Debentures

$35,000,000

Webster

United

"

$6,720,000

invited)

Stone
in

Co.

'

Equip. Trust Ctfs.

invited)

be

by

shares

Trans-Canada Pipe Lines, Inc.
Debentures
(Lehman

$7,500,000

Common

underwritten

Mountain States Tel. & Tel. Co

White,

$900,000

Debentures

White,

to

(Bids

Debs.

Co.)

(Thursday)

January 29

-..Common

and

&

Light & Telephone Co., Inc

(Bids

/.
Ce.

&

Brown & Sons)

Corp.;

stock

B

Finance Corp.,
Chicago, III. (1/15)>
$30,000,000 of sinking fund debentures due

F.

Class A Common

Higginson

con¬

Household
Dec. 26 filed

Common
by

Nesbitt,
McCloud,

Wood, Gundy & Co.,
Ltd.;
Ltd.; and Osier, Hammond &

Common
Corp.;

Thomson

and

5c

Co.,

Young, Weir St
Ltd.) $120,000,000

Nanton,

and, William

&

Securities

States.

'

(Fulton,

Reid

&

Co.,

Inc.)

Economics Laboratory, Inc
(W.

E.

Hutton

Idaho

&

Co.

&

Co.,

'

.

.

(Bids

x

Power

11

EST)

a.m.

Co

Oil

Holman

Co.

(F.

S.

&

Co.,

Inc.)

New

$499,896

.

(Exchange

Co.)

offer—Paine,
&

Co.

to

as

t

•••-

(Eastman

Dillon,

shares

Curtis

(Hamlin

&

819 000

&

Co.)

Luut;

Allen
&

&

Co.;

Cowen

McDowell)

(Tuasday)

&

about

Co.;

England Tel. & Tel. Co
(Bids

II

EbT)

a.m.

Debentures
$35,000,000

Northwestern Public Service Co.

—

(Offering
William

.

Southern

Inc.)

54,120 shares

Staats

&

Co.

and

and

be

may

—

Blyth &

Grant

be

&

Co.)

Edison

Ry

^.Equipment Trust etfs.
EbT)

noon

January 16

$j,o'-i0,000

New Brunswick

January 9

^

(Wednesday)

(Offering

Socony

(Offering

Aluminum Co. of America
(The

First

Boston

Ladd

to

stockholders

Oil

.

•>.

(Bids

be

to

Huntington National Bank (Ohio)
(Offering to stockholders)

Common

$2,000,000

V

Service

&

»

be

(Merrill

D.

Development

Lynch,

(Morgan Stanley Sc Co. and The First Boston Corp.r$ 100,000,000

Interstate Oil Pipe Line Co

291,967

$25,000,000

(Bids

(Bids

National

Bank of Commerce,
-Memphis, Tenn.
(Offering

to

*

•

stockholders—to

Leftwich

Ross)

&

Pacific Power & Light

be

underwritten

10:30

tb

be

invited)

Beane

about

and

Kuhn,

to

to

Loeb

\

.Bonds,
$12,000,000

(Tuesday)/."

;

'

*

-"

Equip. Trust Ctfs.

be

invited)

$3,060,000

'

Co

Debentures

stockholders—to

Corp.)

.

(Thursday)
be

underwritten

about

February 14
New

Bonds

by

The

First

$171,000,000

(Thursday)

York, Chicago & St. Louis RR.
Equip.

$20,000,000

Co.)

&

(Bids

to

be

invited)

February 19

$12,000,000

New England Power

January 21

Bonds

&

$25,000,000

Trust

$6,400,000

Ctfs.

*

Debentures

(Morgan Stanley

by

—

Class A Common
$1,000,000

.Debentures

Co.)

Petroleum

Equip. Tr. Ctfs

$1,000,000

Co

Morgan '

(Monday)

February 7
Phillips

$1,980,000

EST)

a.m.

by
shares

Co

Boston

Riegel Textile Corp..

Common

invited)

underwritten

Baltimore & Ohio RR

(Thursday)

CST)

noon

be

4,400,000

Co.

February 5

•)

by

shares

Oklahoma Gas & Electric Co

'

,

to

(Friday)

&

Pierce, Fenner

(Bids

underwritten

Chicago & Eastern Illinois RR

—.Debentures

(Morgan Stanley & Co.)

(Bids

(Offering

...Bopds

.

17

be

about

Fuller

Aircraft

Common

International Bank for Reconstruction

January

•

Common

Co.)

February 4
Douglas

$4,650,000

Co

(Offering to stockholders—to
Dillon, Read & Co., Inc.)

bids

Tower Acceptance Corp.—..

'V>.'

Equip. Trust Ctfs.

invited)'about

Southwestern Public

by

"

Co

stockholders—to

Stanley

Debentures

$125,000,000

unmerwritten

Public Service Co. of Oklahoma

(Wednesday)

(Halsey, Stuart & Co. Inc.) $10,000,000

Debentures

Corp.)

Debentures

;

be

$5,800,000

.Common

to

Mobil

(S.

$3,850,000

Norfolk & Western Ry

Co

Brothers)

February 1

Green &

(Province of)

(Thursday)

Co.

&

(Bids

and

Ohio

by

Common

by

Debentures

$20,000,000

stockholders—may

Lehman

CO|., Inc.) 105,000 shares

underwritten

Brownell

Co.)

Straus,

underwritten

Bank & Trust Co—

(Offering to stockholders—to
*

shares

Common

stockholders

Winters National

.Common

—_

(Offering to stockholders—To be underwritten by A. C. Allj?n &
Co.,

R.

to

&

S.

Common

and

to

$1,500,000

Valley National Bank
New

F.

$15,000,000

Preferred &

Blosser

(Offering

Debentures
Securities

Spar-Mica Corp

r

and

(Ailen

January 31

.Common
&

*

Brunswick-Balke-Collender

,

dealer-managers)

Union

•

..Common

Webber,' Jackson

act

Colorado Fuel & Iron Corp
'

$20,000,000

319,894

*

January 8

Bonds

EST)

noon

Service Co.

Pacific Petroleums, Ltd.

*

.Debentures

$25,000,000

January 30 ( Wednesday )

$30,000,000

England Electric System

Moseley

__

Moseley in Co.)

(Bids

Public

&

Pierce, Fenner

(Ohio)-

Co.)

(Offering to stockholders—underwritten by Kidder,
Peabody

Preferred

(McDonald,

*

Missouri

Common

Corp

Standard

:

shares

$20,000,000

—__

(The First Boston Corp. and Merrill Lynch,
& Beane) 200,000 shares

K D I

100,000

—_____.,Bonds

'

Illinois

Inc.)

&

Louisiana Power & Light Co

...^...Common

Kalman

and

Co

Power

Blair

$800,000

(Monday)

(Bids

to

(Tuesday)

Co...

be

Bonds

invited)

$10,000,000

'

i

"

■

'

(Bids

Pacific

Power

11

&

Light

(Bids

Wabash

EST)

a.m.

11

Co

Equip.

EST)

r

and

Trust

Cryan &

Steel

(Offering

Co. >

not

be

more

underwritten

than

1,092.925

P.

W.

to

by

Smith,

General

Inc.-.Cqm.

Webber, Jackson
Jones

&

&

Curtis and

Teinpleton)

.

(Bids

to

act

as

(Bids

New

to

be

Sears

Roebuck

(Goldman,

be

invited)

&

Co.;

Lehman

(Dfiering
Dillon.

to

approximately

Debentures
&

26

be

to

be

&
be

Appalachian

.nvited)

Co.
-

Inc.;

to

Bonds

$5,000,000

to

Securities

11

%

..Bonds

(Wednesday)

$13,000,000

to

Co

a.m.

by

EST)

(Bids

Eastman

Alabama

RR.

Equip. Trust Ctfs.
rx

(Bids .to

be

Invited)

about

$3,000,000

Bonds

(Tuesday)

June

about

(Bids

to

>

$6,000,000

(Thursday)
Bonds

invited)

6

about

$19,000,000

(Thursday)

Georgia Power Co
.

'

Bonds

—

Co.
be

to

..Bonds

(Thursday)

invited)

Power

Chicago, Milwaukee, St.- Paul & Pacific
.

be

to

(Bids

$10,000,000

.

11

May 9

$14,000,000

Bonds

Co
$29,000,000

invited) $250,000,000

Mississippi Power Co

"

(Tuesday)

invited)

26

to be

Bonds

$16,000,000

Telephone & Telegraph Co
(Bids

Debentures

underwritten

be

Co.)

$40,000,000

(Tuesday)

Power

$fo,000,000

invited)

Bonds

invited)

be

March
American

Co

be

Electric
(Bids

$35,000,000

Electric

Bonds

$37,500,000

(Tuesday)

invited)

March 19

$4,000,000)

.Bonds

invited)

stockholders—to

Union

(Bids

Corp, )1 .'$50,000,000




to

Atlantic ^ity Electric

$1,400,000

Stuart

(Bids

American Machine & Foundry Co

$4,875,000

Halsey,

be

January 23

160,0<!0 shs.

Equip. Trust Ctfs.

Acceptance Corp

Sachs
and

to

to

April

Jersey, Indiana & Illinois RR.__Equip. Tr. Ctfs.
(Bids

(Bids

Preferred

dealer-managers)

invited)

invited)

to

Gas

(Bids

offer—Paine. Webber, Jackson & Curtis and Stone <fc
Corp.

be

Co

invited)

Columbus & Southern Ohio Electric Co

Southern Indiana Gas & Electric Co

$10,000,000

(Exchange

Securities

Edison
be

February

Equip. Trust Ctfs.

(Bids

Southwestern

Telephone Co. of Michigan

Webster

to

.

Preferred
Mitchum,

General

Missouri Pacific RR._

to

Illinois Bell Telephone Co

$1,243,750

Pacific Gas & Electric Co

stockholders—underwritten by Allen & Co.;
& Co. Inc.; and Auchineloss. Parker
& Redpath)
170,000 shares

Telephone Co. of California

(Paine,

Common

(Tuesday)

Pacific Ry..

shares

Brooks
,

Common
100,000 shares

Cincinnati, New Orleans, Texas &
(Bias

Continental Copper & Steel Industries,
(Offering

(Bids

March 5

.Common

stockholders—to
&

California

(Thursday)

10

Corp

to

Barney

Co.)

Southern

$2,000,000

Maine Fidelity Fire & Casualty Co

January 22
Armco

Winston & Co.)

(White; Weld & Co. and Rowles, Winston & Co.)

Ctfs.

$3,780,000

(McLaughlin,

January

Rowles,

Debentures

Brewster-Bartle Drilling Co., Inc....

$9,000,000

—

Noon

(White, Weld & Co

-Preferred

EST)

a.m.

RR
(Bids

Brewster-Bartle Drilling Co., Inc...'

$12,000,000

&

otf

(Offering

Household Finance Corp

—..Preferred

cumulative

common

and

Savoy-Plaza is tendered.

Western

964,454 shares

77""..(Vickers Brothers)

„

loans

Plaza.-. The exchange offer will
not become effective
/unless at least 80% of the class A and class
B stock

(Tuesday)

Eternalite, Inc

,'•

...

Harriman

Community Research & Development, Inc
—Common

Capital

■r,

American

Dillon,

•;

shares

Inc

(Sunrise

.

(Eastman

by Morgan

bank

pre¬

and

Hotels for

$46,224,200

January 15

.Comipon

.

underwritten

176,450

Inc.)

Arkansas Louisiana Gas Co.___

$10,000,000

Manufacturing Co.:?

Corp.
278,733 shares of 5%%

Pittsburgh & Lake Erie RR

Debentures
Co.)

Jan. 21.

on

Hotels

filed

Rohr Aircraft

Debentures
bv

5^

Co

Stanley

(Offering to stockholders—to be

"

$290,000

(Friday)

Ohio Water Service Co
(Offering to stockholders—to be underwritten
Claybaugh & Co.) 11,295 shares

(Friday)

Securities,

Co.

shares held; rights to
expire
share. Proceeds_To reduce

CALENDAR

(Offering to stockholders—underwritten

.

per

vertible voting preferred
stock, series A (par $25) and
278,733 shares of cpmijion stock (par
$2.50) to be of¬
fered in exchange for
outstanding capital stock of SavoyPlaza, Inc., at the rate of three shares of series A

—To

Niagara Mohawk Power Corp

■

Co.—_________
(Skyline

Scovill

4

•

share.

&

January

Co.

of conum i stock
(par $1).
Proceeds—To certain selling stock¬
holders., Underwriter—Van
Alstyne, Noel & Co., New

Price—$9

|Ctfs.

$9,600,000

&

23

ferred
-

-

Inc.

January 11

..Equip. Trust
EST)

noon

Underwriters—Hayden, -Miller

Hartfield Stores,

(Thursday)

Co

(Bids

Ohio /

Burge & Kraus, both of Cleveland, O.

NEW
January 3

.

.•/• 'v^-7

.

four

Hilton
Nov;

circuit tele-

Dec. 11 filed 133,200 shares of common
stock (par $1).
Price—To be supplied by amendment.
Proceeds—To sell¬

Chemical

debentures due

/.'/•/,,

-

working capital.- Underwriter—Dean Witter
Co., San Francisco, Calif. *
' '/*. V'.■■

300,000 shares of com¬
share) ." Proceeds—For

/ Hansen Manufacturing Co.y Cleveland,

*

,

for

and

Underwriter—Daniel Reeve! &
Co., Beverly Hills,

Calif.

each

Price—$10

pre¬

Redwood City Calif.

Business^/jlosed

Business-

Oct. 29 (letter of
tion

19'(letter of notification)

.

Pineapple Co., Ltd.

of common stock (par $7.50)
being offered for subscription by common
stockholders
of record .Dec.
28, 1956 on the basis of one new share

for

convertible

yision;/Office—2553 * Middlefieid^Jlbad, Redwood City,
Calif.

one\$7,U0U

Under writer-^None

v

75,000 shares of 60-cent

Hawaiian

l^ov. 29 filed 413,920 shares

Corp.

stock.- Price—At par ($1
per
research and development.

Proceeds—For pur¬

hotel.

resort

•'*

Finance

mon

debentures

working capital.

Opera tes

•
•

.

Hancock Electronics Corp.,

v

.

^i

chase of property,
remodeling of present main
for new construction and

,

par

-V *•'" '

Consumer

shares of class A

stock

At

—

ferred stock (par $10). Price—To
be supplied by amend¬
ment.
Proceeds—To reduce bank loans.
UnderwriterVan Alstyne, Noel &
Co., New York.
■//>;,',
,
;

due Dec. 31, 1975, to be offered for sale In
thet Statei
df Texas and Colorado in

V;

NoVjV^jB filed

Lodge, Inc., Durango, Colony\V.-V-v
Aug. 23 filed 5,000 shares of class A voting common
slock (par $1), 295,000 shares of class B
nonrvoting
(par $1), and $700,00(1 of 4%

York; and Johnston, Lemon &
Co., Washington, D. C.
Offering—Postponed.
;

fraction thereof

or

28. ,Price

Guardian

-

stock

Dec.

.

ferred, two shares of General preferred, plus $2 in cash;.-,
for each share of Uriion-$1:44 or $1.35'
preferred, one
share of General preferred, plus
$lf25. in cash, JJealerManagers—Paine, Webber, Jackson & Curtis ana Stone

common

on

—None/

tive preferred stocks of Union Telephone Co. on the fol¬
lowing basis:.For each share of Uriion $2.70 or $2.75 pre¬

Gold Mountain

stock,

held; rights to ex¬
(in denominations of
$100 each).
Proceeds—ForTworking capital. Office—
38j-15: 30th St., Long'Island City 1, N. Y. Underwriter
pire

s^ock. (par $25), to be offered in exchange for the out¬
standing shares of $2.70, $2.75, $1.44 and $1.35 cumula¬

&"Webster Securities Corp.; both of New: York.

the basis of $100 of debentures
for each 200 shares of

on

31

Bonds
bo

invited)

about

$20,000,000

*

32

Chronicle

The Commercial and Financial

(1 4)

notification) 290,000 shares of common
10 cents). Price—$1 per share. Proceeds—

18 (letter of

tock

(par

Underwriter

exploration and drilling.
Securities, Inc., Denver, Colo.

leases; for

To buy

—Skyline
;

Denver, Colo.

Co.,

Oil

sir Hub
Dec

due 1987.
•Proceeds—To repay bank loans and for construction pro¬
gram. Underwriter — To be determined by competitive
bidding. Probable bidders; Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Blyth & Co., Inc., Lazard
Ereres & Co. and The First Boston Corp. (jointly); Kidier, Peabody & Co.; Hairriman, Ripley & Co. life.; Salo¬
mon
Bros. & Hutzler; Kuhn, Loeb & Co.
Bids — To
oe received up to
11 a.m. (EST) on Jan. 7, at Bankers
Illinois

Y.

Wall St., New, York, N.

Co., 46

Trust
«•

filed $20,000,000

7

(1/7)

Power Co.

200,000 shares of common stock (no par).
be supplied by amendment.
Proceeds—To

20 filed

Dec.

Trice—To

bank loans and for construction
program.
Underwriters—The First Boston Corp. and
Merrill Lynch, Pierce, Fenner & Beane, both of New
$8,000,000

eepay

of

York.

Washington, D. C.
$1,000,000 of time certificates, series B, C
jpdD, Price—At 100% of principal amount. ProceedsInternational Bank of

Sept. 23 filed

Underwriter—Johnston, Lemon &

working capital.

Tor

Co.,' Washington, D. C.
filed

29

Nov.

Des Moines, Iowa

shares of common

370,000

stock (par 10

The
Corp. on a share-for-share basis in exchange for
Corp. common stock, and the remaining 185,000
by Financial General Corp. on a basis of 1%
shares are to be offered by

rents), of which 185,000

Equity

Equity
/shares
-

Thursday, January 3, 1957

.

stock in exchange for
stock. Equity and Finan¬
cial, are to receive the 185,000 shares each of Interna¬
tional common stock in exchange for all the outstand¬
ing shares of common stock of Investors Financial Corp.
of International

shares

common

share of Financial common

one

Equities, Inc. International has been informed
142,000 shares of Equity common owned by Fre¬
Corp. will be tendered in acceptance of the Equity

md Group
chat
mont

San Francisco, Calif.
filed 500,000 shares of common stock (par one

International Duplex Corp.,
Dec.

21

100,000 shares of common
and 100,000 stock purchase war¬
rants
(each two warrants to entitle holder thereof to
purchase one share of Idah® Rare Minerals Corp. 6%
cumulative convertible sinking fund preferred stock,
(letter of notification)

Nov. 30

(par one cent)

stock

$10, and one share of Idaho Rare common stock, par
cent at $11 per unit). Price—$3 per unit, consisting
of one McRae share and one warrant. Proceeds — For
par

one

McRae, 1704
Gemmingen
Mo.
Michigan Wisconsin Pipe Line Co.
^ *
July 2, 1956 filed $25,000,000 of first mortgage pipe line
mining

J.

Robert

Office—c/o

expenses.

Gourley St., Boise, Ida. Underwriter—Von
& Co., Inc., 320 North Fourth St., St. Louis;

off short term bank
Underwriter—To be
determined by competitive bidding- Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. Reoffering is
expected sometime during the first six months of 1957.
bonds due

Proceeds—To

1976.

pay

loans and for construction program.

20

(letter of notification) 15,000 shares of common
Price — At par ($10 per share).
Proceeds—For

expansion and working capital. Office — 21
St., Minneapolis, Minn. Underwriter—None.

cent).
Price—$1 per share. Proceeds—To equip and
establish five super launderettes and for working cap¬

North 3rd

con¬

amount.
working capital to finance expansion of
Appliance Stores, Jnc., a subsidiary, and for

Proceeds—For
Northern

Underwriters—A. J. Grayson
& Co., Inc., New -York, Nf Y.; A. J. Grayson & Co. of
New Jersey, Inc., Newark, N. J.; and A. J. Grayson &
Co. of Maryland, Inc., Baltimore, Md.

other corporate

purposes.

k Midland Commercial Corp., New York
Dec. 28 filed 187,500 shares of common stock

(par

10

offered for cash

par

stockholder)

ing

Ramie Corp. and

of

stockholders

to

Corp. in exchange for common

Canada Uranium

South

in

Electric

supplied by amend¬

to be

Underwriters—Names

ment.

//•■•'•;./
'-•'c//
Interstate Oil Pipe Line Co. (1/9)
Dec. 20 filed $25,000,000 of 25-year sinking fund
de¬
bentures due Jan.
1, 1982.
Price—To be supplied by
.amendment.
Proceeds — To construct additional pipe
[tine facilities. Underwriter — Morgan Stanley & Co.,
•.:■•■

INew

"• 'Zt/T-./'--''..

York.

(F. L.)

Jacobs
•Oct. 4 filed

Co.

$3,000,000 of 6% convertible

debentures due

1, 1966. Price—100% of principal amount. Proceed!
—To pay short-term loans and for working capital. Un¬
derwriters—McLaughlin, Cryan & Co. and Gearhart &
Nov.

KD I Corp.,

Rochester, N. Y. (1/7-11)
of 7% participating cumula¬

16 filed 81,428 shares

preferred stock (par $5), of which 71,428 shares are
vo be offered to public.
Price—$7 per share. Proceeds—
For machinery and equipment, working capital and other
tive

corporate purposes.

Underwriter—McDonald, Holman &

'Jo., Inc., New York.

1

;

Jackson

&

Oct.

15

filed

339,600 shares of common stock (ho par)
stockholders of record

be offered for subscription by

12, 1956 at the

;3ept.

each

for

share

rate

of two shares of new stock

Price—To

held.

stockholders,

$10

per

share; and to public, $15 per share. Proceeds—For ex¬
pansion and working capital. Underwriter—None. Pub¬
lic offering will be made by employees of the company
and

qualified licensed dealers.

Louisiana
Dec.

4

filed

Power & Light Co.

820,000,000

of

first

(1/15)

mortgage

Proceeds—For reduction of bank

1987.

struction

program.

selling

Proceeds—To

stockholder.

Underwriters—A. J.

Grayson & Co.. Inc., New York, N. Y.;"A. J. Gfayson &
Co. of New Jersey, Inc., Newark, N. J.; and A. J. Gray¬
& Co. of Maryland,

son

Inc., Baltimore, Md.

—

Co., Ltd., Madison, N. J.

ects

Inc., New York
2,500,000 shares

filed

22

June

stock

(par

cent). Price—$1,50 jper share. Proceeds—To acquire
$2,400,000 the Chavin. lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate
for

Gearhart & Otis, Inc., New

s

York. Offering—Postponed.

bonds

loans

and

due
con¬

Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart
Ik Co. Inc.; Equitable Securities Corp. and
Eastman
Dillon, Union Securities & Co. (jointly); Kuhn, Loeb
*k Co.; Blyth & Co., Inc.; Merrill Lynch, Pierce, Fenner
<k Beane, Kidder, Peabody & Co. and Harriman Riple^'
tk Co.' Inc.
(jointly); Salomon Bros. & Hutzler; The
/First Boston Corp., and Glore, Forgan & Co. (jointly);
White, Weld & Co. and Shields & Co. (jointly). Bids
—Expected to be received up to noon (EST) on Jan. 15,
1957.

offer of rescission.
Proceeds—For completion of plant,

which 708,511 shares are subject to an

Price—$3 per share.

provide for general creditors and for working capital.
Office—Jackson, Miss.
Underwriter—None, offering to
be made through company's own agents.
Missouri

Public Service Co.

(1/15)

/

(no par)
to be offered for subscription by common stockholders
on the basis of one new share for each five shares held
on or about Jan. 15, 1957; rights to expire about Jan. 29.
Price—To be supplied by amendment.
Proceeds—To¬
21

Dec.

319,894 shares of common stock

filed

gether with $5,000,000 to be received from private sale
bonds, to be used to retire bank loans

of first mortgage

and

pay

for

new

construction.

Underwriter—Kidder,

Peabody & Co., New York.
k Mutual Small Group Investors Corp.
Dec. 26
(letter of notification) 50 Mutual

Curtis

Title Units.

Proceeds—To make initial payment
Shopping Center. Office — 110 Fifth
Ave., New York 11, N. Y.
Underwriter—None.| Offer
to be made only to legal residents of New York

Stanley & Co. Bids—To be received

Corp.; Morgan
11

to

(EST)

am.

<k Farish,
Maine

Nov.

28

Montgomery, Ala.
Fidelity

filed

Fire

99,500

&

Casualty Co.
(1/21-25)
shares of capital stock (par $5).

UPrice—$12.50 per share.
and

surplus.

Proceeds —To increase capital
Office—Portland, Me. Underwriter—Mc¬

laughlin, Cryan & Co., New York.
May Stores Realty Corp.
Nov. 23 filed $25,000,000 general


3Teb. 15, 1977. Price —


St^te.

National

Fidelity Insurance Co.

(letter of notification) 33,000 shares of common

(par $1.25) to be offered to stockholders on the
basis of one share for each seven shares held. Price—$8
stock

share. Proceeds—For working capital. Office—314
Pine St., Spartanburg, N. C. Underwriter—None.

•

Nov. 15, 1955 filed

filed

20

bonds

due

Room

at

up

195

/

-

-

2315,

(1/11)

/

$46,224,200 of convertible debentures duo

Feb,

1, 1972, to be offered for subscription by common
stockholders of record Jan. 10, 1957 at the rate of $100
of debentures for each 25 shares of s;ock held; rights
to

expire

Jan.

28,

1957.

Price—100%

principal
Under¬
writer—Harriman Ripley & Co. Inc., New York.
on

Proceeds

amount.

For construction

—

of

program.

• Nic-L-Silver Battery Co., Santa Ana, Calif.
27 filed

75,000 shares of 5% cumulative participat¬
stock and 7,500 shares of

ing preferred
Price—At par

bank

a

common

stock.

($10 per share). Proceeds — To liquidate
$178,635; increase inventories; and for

of

loan

•

Public

Northwestern
18 filed

Dec.

purposes.

Under¬

Jan.

record

10 shares

each

Service

Co.

(1/8)

54,120 shares of common stock (par $3) toby common stockholders of
7, 1957 on the basis of one new share for

for subscription

offered

be

held; rights to expire

on

Jan. 22. Price—

supplied by amendment. Proceeds—For construc¬
expenditures. Underwriter — A. C. Allyn & Co.,.

To be

tion

111.

Chicago,

Inc.,

Corp., Berlin, Md.

$2,000,000 of 6% debenture bonds due July 1,

Oct. 4 filed

and 4,000,000 shares of common stock (par one
to be offered in units of one $100 bond and 20O
shares of stock.
Price—$300 per unit. Proceeds — For

1976,

cent)

construction
writer

of amusement pier. Under¬

operation

and

Paul

—

Korns, a director, of Johnstown, Pa.
Grazier of Whaleysville and Ocean

A.

James

Col.

Lt.

City, Md., is Chairman of the Board.
Powef Co.

Ohio

preferred stock
Proceeds—For construction program. Under¬
be determined by competitive bidding. Prob¬

Sept. 20 filed 60,000 shares of cumulative

(par $100).
writer—To

bidders: The First Boston

Corp.; Blyth & Co., Inc.;

Co.; Eastman Dillon, Union Securities & Co.
Salomon Bros. & Hutzler (jointly); Harriman Ripley

Kuhn Loeb &
and
&

Co., Inc. and Stone & Webster.

Securities Corp. (joint¬
received" up to II

ly); Lehman Brothers. Bids—The two
a.m.
(EST) on Oct. 30 were rejected.

Dec.

21

Service Co., StruLiters, Ohio (1/11)
of notification) 11,295 shares of com¬
(par $10) to be offered for subscription by

mon

stock

(letter

common

stockholders on the basis of one share for

each

1957. Price—To be supplied
Proceeds — For construction program.

12 shares held as of

Jan.-11,

by amendment.
Underwriter—Blair F. Claybaugh & Co., Harrisburg, Pa.

OKlaWfcta Gas & Electric Co. (1/17)
19 fiiqd $20,000,000 of first mortgage bonds due
1987. Proceeds—For construction program. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Lehman Brothers and
Blyth & Co., Inc. (jointly); The First Boston Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane and White, Weld Sc
Co.
(jointly); Harriman Ripley & Co. Inc.; Equitable
Securities Corp.; Kuhn, Loeb & Co. Bids — Tentatively
expected to be received up to 10:30 a.m. (EST) on
Dec.

17.

Jan.

Oct.

Montreal, Canada
shares of capital stock (par $1), of

Mining Corp.,

Orefield

15 filed 900,000

which 200,000

shares are now outstanding.

Price—To be

supplied by amendment. Proceeds —For exploration
costs.
Underwriter—To be named later. Michael Tzo-

Colivas, of Montreal,

k Pacific Gas & Electric Co. (1/22)
$35,000,000 of first and refunding mortgage

1, 1986. Proceeds—To repay
for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Blyth &

short

50,000 shares of class A common stock

$2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Pi«ceeds
—To selling stockholders. Office — Little Rock, Ark.
Underwriter
Equitable Securities Corp., Nashville,
—

Tenn., and
postponed.

N. Y.

New York,

Offering

Co., Inc.; The
received
•

on

Brunswick

tures due Jan. 1,

Indefinitely

(Province

1982.

Proceeds—To

sinking fund deben¬

Price—To be supplied by amend¬
be

advanced

to

The

New

Bruns¬

First Boston Corp.
Lid.

20

filed $15,000,000

Jan.

1,

1977.

program.

rities
•

Bids—Expected to be

Jan. 22.

Petroleums

Pacific

Price
To

—

—

repay

(1/15)

of subordinate debentures due

To be supplied by amendment.
bank loans and for expansion

Underwriter—Eastman

Dillon, Union Secu¬

Co., New York.

&

Pacific Power & Light Co.

Dec. 6 filed

(reduced

(1/9)

$20,000,000 of first mortgage bonds due 1987

bv

amendment filed Dec. 21, to $12,000,000).

repay bank loans and for new construc¬
Underwriter—To be determined by competitive

Proceeds—To

bidding.

(1/16)

of)

and

loans

Dec.

tion.

14 filed $10,000,000 of 25-year

ment.

—

bank

term

(par

New

mortgage

;

1957,

Niagara Mohawk Power Corp.

Dec.

Proceeds

National Old Line Insurance Co..

Dec.

To be supplied by amendment.

8,

bonds, series AA, due Dec.

per

—To

Jan.

on

Broadway, New York, N. Y.

Dec. 28 filed

of record Oct.

<Goddard & Co., Inc., Boston, Mass., and Thornton, Mohr

shares

.

panakis, of Miami, Fla., and Denis
Canada, are large stockholders.

Massapequa

Nov. 30

Price—To be supplied by amendment. Proceeds
increase capital and surplus. Underwriters—J. H.

(par $1)
of Lynn

NEES

England Telephone & Telegraph Co. (1/8)
Dec. 11 filed $35,000,000 of 29-year debentures due Jan..
1, 1986/ Proceeds — To repay advances from American
Telephone & Telegraph Co. (the parent). Underwriter—
To
be
determined by competitive bidding.. Probable
bidders: Halsey,, Stuart & Co. Inc.; The First Boston "

for

Loyal American Life Insurance Co., Inc.
;'Sept. 28 filed 230,000 shares of common stock (par $1)
to be offered for subscription by common stockholders

lege,).

stock

two

Dealer-Managers—Paine, Webber,
and F. S. Moseley & Co., both of

Price—$1,000 each.

•

15; 1956 at the rate of one new share for
each three shares held (with an oversubscription privi¬

of

k Ohio Water
^

of .commgn

one

purposes." Underwriter

capital

basis

New

able

Projects-Venture F, Inc., Madison, N. J.
Dec. 14 filed $2,500,000 of Participations in Capital as
Limited Partnership Interests. Price — In $25,000 units.
Proceeds
To acquire leaseholds and for drilling of
initial or exploratory wells. Underwriter—Mineral Proj¬
Mineral

Dec. 26 filed

Life Insurance Co. of South Carolina

:jo

the basis of one share of
share of Midland
Canada common stock.

of

stock

common

for

the

Boston, Mass.

South

shares

live

each

k Mississippi Portland Cement Co.
1,600,000 shares of capital stock (no par), of

\

(

on

Midland for each Ramie share and one
for

Minerals,

Otis, Inc., both of New York.
Nov.

corporations

stock of those

en

Lynn share.

•

ital.

of

exchange

Co.

Ocean City Pier

to certain individuals, and the remaining 135,000
shares are to be offered by Albert J. Grayson (controll¬

at

819,000 shares

offered

&

writer—None.

of principal

Price—100%

debentures.

filed

3

be

to

working capital and general corporate

York
subordinated

k Midland Commercial Corp., New
Dec. 28 filed $480,000 of 10-year 7%
vertible

Dec.

Dec.

k Midland Acceptance Corp.
Dec.

..

for each

Corp., Boise, Idaho

,

(l)l5)

New England Electric System

•

Gas

cents), of which 52,500 shares are to be

Underwriter—None.

exchange offer.

Electric Power Commission to repay bank loans,"
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago.
'
• V,
''
i

wick

—Temporarily postponed.

stock.

International Capital Corp.,

to

purchase properties from parent, The May Department
Stores Co.; to pay existing indebtedness to parept and
for acquisition* or construction of additional properties
to be leased t6 parent.
Underwriters—Goldman, Sachs
& Co. and Lehman Brothers, both of New York. Offering
McRae Tungsten

(JL/7)
first mortgage bonds

Power Co.

Idaho

Dec.

$18,000,000 is to be used

Proceeds—Approximately

31

Continued from page

•

.

.

(32)

22

Lehman
Bros.

&

Weld &

Probable bidders: Halsey, Stuart & Co. Inc.;
Bear, Stearns & Co. and Salomon
Hutzler (jointly); Blyth & Co., Inc. and White,
Co. (jointly); Eastman, Dillon, Union Securities
Brothers,

<r

Volume

&

Co.

be

185

and

Number

5600

.

The Commercial and Financial Chronicle

.

Kidder, Peabody &

received

11

to

Co.

(jointly). Bids—To

(EST)
Rector St., New York 6, N. Y/. Pacific

Dec. 6

up

a.m.

Power & Light Co.

Jan.

on

9

Two

at

(1/9)

stock

Lehman

Brothers; Biyth & Co., Inc.; Kidder;
Peabody & Co. and Eastman Dillon, Union Securities
& Co. (jointly).
Bids — To be received up to II a.rm
•

Jan. 9 at Two Rector St., New York

on

6, N. Y.

Peerless Life Insurance Co.

;
} (letter of notification) 11,500 shares of common
(no par). Price—$25 per share. Proceeds
For
general corporate purposes. Office
1310 Gulf States

Oct.

for 10,357 shares of

•

8

stock

—

Bldg., 109 North Akard St., Dallas, Tex. Underwriter—
Newboig & Co., New York. Letter to be withdrawn.

persons, $13
Underwriter

-f

—

The

Robinson-Humphrey

Southern New England

Sept.

come

At¬
"

Telephone Co;

Telephone & Telegraph Co. (approximately
and for property additions and improve¬

Underwriter—None.

nitely by

Offering—Delayed

Oct. 4.

company on

Peoples Finance Corp.
' ; * s/
16 filed 50,000 shares of 60-cent
cumulative con¬
stock (par $5). Price—$10 per share.

vertible preferred

Proceeds—To reduce bank loans and for
working capital.
Office—Denver, Colo.
Underwriter—Paul C. Kimball
& Co., Chicago. Offering—Expected sometime in
Janu¬

r

ary.
I

■

\

r

^

'

•

•

'

•

,

i

■.
•

•

.

,

...

.

,

.

-

■

* Permaspray Manufacturing: Corp.,
;
League City, Texas
.

(See also next paragraph.)

Sportsman, Inc., Atlanta, Ga.
486,000 shares of common stock,

Dec.

(letter

14

of

notification)

100,000

shares

of

com¬

stock (paF 10 cents).

mon

Price_$3 per share. Proceeds
buy materials, machinery and equipment. Under¬
writer—Benjamin & Co., Houston, Texas.

—To

Pittsburgh Consolidation Coal Co.
v
Oct. 3 filed 2,678,697 shares of common *&tock
(par $1)
being offered in exchange for common stock of Pocahon¬
tas Fuel Co.

each

the basis of 2% shares of
Pocahontas common share.
The

been

declared

(EST)

on

Pittsburgh for
offer, which has

effective, has been extended

until

3

p.m.

$1) to be offered in units of
Price

construction
San

Juan,

To

—

of

be

fronton

Puerto

a

$500
and

Rico.

mortgage

y«i$Sfenon

stock (par

$500 bond and
per

100

unit. Proceeds

related

shares
—

For

Office—

activities.

Underwriters—Crerie

&

Co.,
Houston, Texas; Dixon Bretscher Noonan, Inc., Spring¬
field, 111.; and Aetna Securities Corp., New York. Offer¬
ing—Date indefinite.

Pyramid Productions, Inc., New York
Sept. 27 filed 220,000 shares of common stock

(par $1),
of which 200,000 shares are to be
offered to public and
20,000 shares issued to underwriter. Price—$5 per share
Proceeds—To retire $125,000 of
outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union
Produc¬

tions,

Inc.;

vision

releases.

for

and

working

capital.

Underwriter—E.

L.

Business—Tele¬

Aaron

&

Co., New

York.

Redi-Food Co., Inc.
Oct. 8 (letter of

notification) 150,000 shares of

stock

(par

10

cents).

Price—$2

share.

per

common

Proceeds—

Tospurchase plant and equipment. Office—2505 Butler
Place, New York City. Underwriter—Hopp & Co., Pas¬
saic, N. J.
,•

Riegel Textile Corp.

(1/17)
$12,000,000 sinking fund debentures due
1977.
Price—To be supplied by amendment.
Proceeds
—To retire $4,400,000 term notes and to reduce shortDec.

20

filed

bank loans. Office—New York

term

to

are

be

to

be

Theatrical

exercise

on

Oct.

City. Underwriter—

convertible
first

to

debentures

stockholders

due
for

a

A

Price—Of class A.

ceeds—For investment

ment investment company.

Thcmorav

Ga.

Southern

regis¬

Feb.

1, 1967 to be
14-day period; then

Bank

•

cash

(1/22)

Dec.

Co.

•

Nov.

Underwriter

program.

Corp., Chula Vista, Calif. (1/23)
$7,500,000 of convertible subordinated de¬
due 1977.
Price—To be supplied by amend¬

filed

bentures
ment.

for

Proceeds—To reduce short-term bank

expansion

and

working capital.

First Boston Corp., New

Los

Angeles, Calif.

ioans,

and
Underwriters—The

York; and Lester, Ryons & Co.,

-

,

Indiana State Securities Corp. of
Indianapolis, Ind., for
offering to residents of Indiana.
-

14

1, 1982.
:—For

Manufacturing Co.

expansion

and

Scovill

to

be

Manufacturing Co.

14 filed

offered

176,450 shares of

Underwriter—

for

stock

(par $25)
stockholders

subscription by common
;of record Jan. 3, 1957 at the rate of one new share for
each eight shares held;
rights to expire on Jan. 21. Price
i—To

be

$28.50

for

each

sion and working capital.
& Co., New York.
Sears

Roebuck

share. .Proceeds—For

expan¬

Underwriter—Morgan Stanley

Acceptance Corp.

Roebuck & Co.

Underwriters

Goldman, Sachs & Co.;
Halsey, Stuart & Co. Inc.; and Lehman Brothers; all of
New
-•

writer—None, but

York

and

Southern

Chicago.

General

Insurance

Ga.

Sept, 24 filed 95,714 shares of common stock (par $5;, of
which 50,000 shares are to be offered
publicly; 20,714




by them.

the

class

common

share

stock

and

and

Cowen

Dec.

18 filed

Jan. 1, 1982.

ceeds

Dec.

—

For

of

Leesburg,

Va.

>

,

two

Co.

18

to

be

in

offered

common

units

shares).

of

United

&

amount.
Pro¬
real estate.

on

Conditioning

Under¬

32, N. Y.

States

Air

Corp.

27 filed

be offered

to

tor

to

the

public; and the underwriter will be

reoffer to the public.

ceeds—For

and

principal

mortgages

Ave., Jamaica

granted options to acquire the remaining 500,000 shares

poses.

B.

Price—At market prices. Pro¬
working capital and general corporate pur¬

Office—Philadelphia, Pa. Underwriter—Mortimer
&
Co., Inc., New York. Offering—Date

Burnside

indeiinite.

working capital.

Co. of Boston

Hillside

600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
Sept.

or

$25,000,000^ of sinking fund debentures due

Moseley

of

acquire

one

Price—To

(1/7-10)

capital expenditures and

or

writer—None.

&

(Ohio)

Price—100%

create

Office—179-30

New

Venezuela

Diamond

Fla.
Price—
At par (20 cents per share).
Proceeds—For exploration
and mining operations in Venezuela.
Underwriter—Co¬
lumbia Securities Co., Inc., of Florida, Miami, Fla.
Mines,

Inc.,

Miami,

Aug. 31 filed 1,500,000 shares of common stock.

Inc., Charlotte, N. C.

26 filed

common

Corp.,

shares of 6% cumulative convertible

Investors, Inc.
(letter of notification) $250,000 of 9% registered

ceeds—To

York.

Dec.

Material

Rock

mortgage bonds due in 50 equal and successive monthly

Lunt, Buffalo, N. Y.; Allen &
& Co., both of New York, N. Y.; and
& McDowell, Chicago, 111.

S.

Webster

&

> Nant'6h," Ltd."

installments.

Price—To be supplied by amendment. Pro¬

Underwriter—F.

Stone

if Union Realty

—

Underwrites—Hamlin
Co.

Brothers,

.

Elvin C. McCary,

$5 per unit in Canadian funds,

Straus, Blosser

Lehman

States:

Price—$150 per
Underwriters—

J.

N.

approxi¬
mately S5.21 per unit in United States funds. Proceeds
—F01
construction costs.
Office
Montreal, Canada.
company

construction.

Tyrex Drug & Chemical Corp.
5 (letter of notification), 150,000 shares of class A
stock (par one cent).
Price—$2 per share. Proceeds—
For equipment, raw materials, working capital and other
corporate purposes.
Office—42 Newark St., Hoboken,
N. J.
Underwriter—Dennis Securities Corp., Hoboken,

400,000 shares of 5% convertible preferred
stock (par $5)
(amended Dec. 13 to 300,000 shares of
5% convertible preferred stock, par $5, and 600,000
of

shares of stock.

new

Nov.

A

(1/15)

if Sterling Investment Fund,

Co., Atlanta,

(par $1),

stock
for

Oct. 29 filed

net

and five

preferred stock. Price—-At par ($1.50 per share). Proceeds —iFor asphalt plant, equipment, working capital
Underwriter—None.

Anniston, Ala., is President.
Spar-Mica Corp., Ltd.

preferred

and

selling commission will be allowed

a

for sales effected

Standard Oil

—

common

1986

and other corporate purposes.

-

exchange

(1/29)
(Canadian) of subordinated
4,000,000 shares of common
to be offered in units of $100"

$80,000,000

Nov. 28 filed 500,000

Secu¬

to be offered publicly 238,954
in

United

Tri-State

Investment

to dealers

(1/10)

Dec. 21 filed $50,000,000 of debentures due 1972.
Price
—To be supplied by amendment. Proceeds—To
purchase
customer installment receivables from the
parent, Sears,

are

offered

Co., New York.

Pipe Lines, Ltd.

Proceeds—For

mond

Casualty Co. and common stock
Corp. Price—$2 per share.
Pro¬
ceeds^—For purchase of stock of Capital and Allied firms
and for purchase of U. S. Government bonds. Under¬
Allied

shares

(1/4)
common

be

to

&

Tex.

common

In Canada: Nesbitt Thomson & Co. Ltd.; Wood, Gundy & Co.. Ltd.;
McClOud, Young, IWeir. & Co., Ltd.; and^Osler, Ham¬

stock of Capital Fire &

of

(1/4)

$10,000,000 of 25-year debentures due Jan.
Price—To be supplied by amendment. Proceeds

Corp., Anniston, Ala.

211,681 shares

are

Fuller

Houston,

class A

Securities Corp. and White, Weld & Co.

..

Dallas, Texas.

Sept. 12 filed 450,635 shares of
of which

shares

filed

working capital.
Morgan Stanley & Co., New York.

Dec.

rities Co.,

of

Scovill

Dec.

Underwriter—Southwestern

purposes.

Southwide

—

,

8

corporate

,

I Samson Uranium,
Inc., Denver, Colo.
Aug. 21 (letter of notification) 25,000,000 shares of capi¬
tal stock. Price-r-At par
(10 cents Rer share). Proceeds
—For core drilling,
including geological research and
core
assays; for mining shaft; to exercise purchase of
option agreement on additional properties; for working
capital and other corporate purposes.
Underwriter

York.

Southwestern

June

Corp.,

(par $1-Canadian)

unit.

Resources, Inc., Santa Fe, N. M., 1
filed~l,000,000 shares of, common stock (par 25
cents). Price—$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general

Aircraft

27

Statement effective Dec. 17.

(2/1)
stock (par
share. Proceeds—For working capital.

D.

due

of debentures

—

★ Rohr

New

filed

26

debentures

In

construction

Inc.,

per

Trans-Canada

leans

Dillon, Read

Co.

Acceptance

Price—$5

stock

&

the
Jan.

on

Price—To te
Proceeds—To acquire Abstract

Underwriter—None.

Tower

14 shares held (with an oversubscription privi¬
lege); rights to expire on Jan. 30, 1957. Price—To be
supplied by amendment.
Proceeds — To repay bank

for

effec¬

of

10, 1957, unless extended to Feb. 28, 1957.

(1/16)

for each

becomes

acquires at least 85%
The purchase offer will expire

stock.

m

The subscription

company

Underwriter—S.
Service

Morgan Stanley & Co., New York.

Dec.

Abstract

$1).

Public

the basis of $15.25 in

stockholders

Guarantee

latter

Dec. 7 filed 200,000 shares of

291,9G7 shares of common stock (par $1)
to be offered for subscription by common stockholders
of record Jan. 16, 1957 on the basis of one new share

and

Title

to

if

tive

•

filed

21

offer

stock.

Jan. 22.

Southwestern

on

share of Title Guarantee stock

a

supplied by amendment.

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Salomon Bros. & Hutzler;
Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.;
Merrill Lynch, Pierce, Fenner & Beane; Bids—Expected
on

Lockport, N. Y.,

4/10ths of

and

exchange for each share of Abstract.

26 filed $10,000,000 of first mortgage bonds, series
G, due Jan. 1, 1987. Proceeds—To prepay about $6,000,000 of temporary bank loans and for construction pro¬
gram. Underwriter—To be determined by competitive

be received

Guarantee & Trust Co., New York
filed 61,902 shares of capital stock (par

21

Rocliesier and

Underwriter—None.

Dec.

to

Title

$8) evt
35,750 shares are to be offered for subscription
by stockholders on the basis of one new share for each
eight shares held; and the remaining 26.152 shares are
to be offered, together with cash, in exchange for stock
of Abstract & Title Insurance Corporation of Buffalo.

Union Oils Ltd., Toronto, Canada
Aug. 24 filed 750,000 shares of capital stock (par $1).
Price—64% cents per share. Proceeds—To selling stock¬

Electric Co.

Corp.

29

which

Bldg., Atlanta,

Underwriter—Allied Investment Co., Atlanta, Ga.

if Southwestern Gas &

manage¬

Underwriter—None.

stock

Nov.

Southern

holders.

entertainment

and

closed-end

(letter of notification) 380,000 shares of corri(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

of principal to stockholders;
Proceeds—For expansion of its
present activities in the real estate and mortgage field.
&

theatrical

in

Business—A non-diversified

fields.

Price—90%

Citizens

expected at $10 per share in lots of
shares; of class B, expected at par. Pro¬

not less than 25

and at par to the public.
Office—1206

Plan, Inc., New York City
shares of class A stock (par five

52,000

cents) and 28,000 shares of class B stock (par five cents).

mon

series

Interests

filed

30

June

the public.

to

appliances and air conditioners and for working
Underwriter—Franklin Securities Co., Dallas,

publicly

reserved

Syndicate, Inc.
(letter of notification) $130,000

offered

Underwriter—None.

Fuel

Texas.

Underwriters, Inc., Atlanta, Ga. Philip H.
Dohn, Jr., and Roger H. Bell, sole stockholders of the
underwriter, are officers and directors of Southern
Sportsman, Inc.

5

•

capital.

of which

Investment

tered

6%. first

bonds due 1968, and 300,000 shares of
of stock.

shares

are

'

Corp., Clarksville, Texas
Nov. 29 (letter of notification) 120,000 shares of com¬
mon stock (par $1).
Price—$2.50 per share. Proceeds—
To pay bank loans, financing of time payment sales'

offered and 111,300
of options to be
granted to employees of the oompany (latter exercisable
on or before Dec.
31, 1956). Price—$'3 per share. Pro¬
ceeds—To buy or establish a complete sporting goods
house; other expansion and inventories. Underwriter-

Dec.

Alai, Inc.
$1,500,000 of 12-year

filed

27

Texas

Southern

Puerto Rican Jai

July

375,000
shares

Feb. 1, 1957.

on

filed

7

?*'

■

the selling stockholder.

of

Southern

Dec.

'

Sept. 25 filed 3,700,000 shares of capital stock (par 25
cents).
Price—At market from time to time on the"
American Stock Exchange or the Toronto Stock Ex¬
change or by private sale.
Proceeds—To A. P. Scott,

—

-

.

Texas Calgary Co., Abilene, Texas

England Telephone Co.
Sept. 19 filed 1,173,696 rights to purchase 146,712 shares
of new capital stock (par $25) to be issued to American
Telephone & Telegraph Co., which owns 21.61% of the
outstanding stock of Southern New England Telephone
Co. Proceeds—To American Telephone & Telegraph Co.
Bids
Had been expected to be received up to 11 a.m.
(EDT) on Oct. 10. (See also preceding paragraph.)

•

St., Jackson Heights
1 '

37-12 84th

-

writer—None.

indefi¬

Southern New

Nov.

Capital Corp.,

if Sunset Country Club, Snappington, Mo.
Dec. 26 filed $643,800 of 1% first mortgage bonds du6
Dec. 1, 1986, to be offered for subscription by stockhold¬
ers of the Club.
Price—At 100% of principal amount (in
denominations of $1,850 each).
Proceeds—To retire a
$55,000 mortgage; and erect new clubhouse, etc. Under¬

$15,800,000)
ments.

Business—Pres¬

.

open-end company in March, 1957. Distributor-

an

72, L. I., N.*Y.

679,012oshares of ca^it^l stock (par $25)
for subscription by stockholders at the
share for each eight shares held. Price
share.
Proceeds — To pay advances from

per

American

Proceeds—For investment.

closed-end investment company but will be¬

a

Sunrise

new

one

Fund, Inc., New York, N. Y. (1/4)
\
500,000 shares of capital stock. Price—$£

filed

share.

per

offered

of

$30

—

Inc.,

'

.

3

ently is

19 filed

be

to

rate

Co.,

Registration to be withdrawn.

lanta, Ga.

Sunri«e

Dec.

offered to certain other per¬
Price—To. public, $14.50 per share; and to certain
per share.
Proceeds—To pay bank loan.

sons.^

V

(par
$100). Proceeds—-For construction program. Underwriter
—May be determined by competitive bidding. Probable

(EST)

to be offered in exunange

are

$10 par common stock of Progressive Fire Insurance Co.;
and 25,000 shares are to be

fi)ed 90,000 shares of serial preferred

bidders:

shares

33
:

(33)

(by amendment) 100,000 additional shares
stock (par $1).
Price—At market. Proceeds

—For investment.

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

"

Continued

on

page

34

The Commercial and Financial

34

Chronicle

.

.

Thursday, January 3, 1957

.

(34)

Continued from page

33

^

^-Baltimore & Ohio RR. (2/5)
are
expected to be received

'

trust

sive.

and 61,000 shares for a selling
stockholder.
Price — To be supplied by amendment.
Proceeds—Together with proceeds from private sale of
the company's

Probable bidders: Haisey, Stuart & Co. Inc.; Salo¬

Feb.

Chattanooga, Tenn.

Wheland Co.,

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1, 1976, and 136,000 shares of common
account

,

& Hutzler.

Bros.

mon

■

„

"

'

^

•

•?.

Probable bidders:: Halsey/.Stuart & Co; Inc:;
Sianle'y & Co.; The First ~
~
°
~
J Boston Corp.
Consolidated

,

Nov. 21

Markets, Inc., Phoenix, Ariz. /
Nov. 27 it was reported company plans to issue and sell
"750,000 shares of common stock. Underwriter — H. M.
Byllesby & Co., Inc., Chicag,o 111. Registration—Planned
Offering—Expected in mid-February.

in January.

*

It

Freight ways,

announced

Inc.

•

.

t

Mofgair;-

-

-

;r

.

has applied to the-'
Interstate Commerce Commission for authority to issue
and sell 250,000 shares of common stock- (par So). Pro-!
ceeds^Together with funds from sale/of up to S3,436,746 '

(A. J.)

Bayless

$1,500,000 4%% first mortgage bonds and $900,000 oi
3-year unsecured 4*4% notes to a group of banks, will
be used to retire outstanding series A and series B 5%*

debentures. Proceeds — For construction program. Undcrwriter—May be determined by competitive bidding..,

"

by the company on
5 for the purchase from it of $3,060,000 equipment
certificates dueannually from 1958 to 1972, inclu-

Bids

was

company

long debt securities, to acquire six Eastern lines. Under4

*

writer—Blyth & Co., Inc., New. York and San Francisco"

Under(Calif.lv/ /',.-/
/; :
v- v-v/;
Brazos River Gas Co.
(Texas.)
-■/" ?,
writer*—Hemphill, Noyes & Co., New York; Courts &
Nov. 12 it was reported that1 early registration is exDaystrom, Inc., Elizabeth, N; i. ^
Co., Atlanta, Ga.: and Equitable Securities Corp., Nash-,
:
ville, Tenn. Offering — Temporarily postponed. ';y vi; pected of approximately 200,000shares ofcomnmn^Dee. 18, Thomas Roy Jones, President; announced that first mortgage bonds, and for expansion program.

...

.

_

...

.

this company, fomerly

of

Wildcat Mountain Corp., Boston, Mass.

UphamJcompany,

plans arpuhlic offering in Januai-y, 1957,
abmit; $8,000,000 convertible subordinate debentures:
. pro^eds—For expansion program and working capital.,

pected to be about-.$5. per?
f\
$800,000 of 6% subordinated cumulative1:
stockholders.^ Ul^erwriters—-Shields- &
and^
debentures due Dec. 1, 1976, and 6,000 shares of common
son, Ham m ill. & Co., both of New. Tbrk.
.
".v"/ v.";
Stock (no par) to be offered in untys of a $400 deben¬
• Brunswick-Balke-Collender Go.
(1/31)
ture and three shares of stQck. Price
$500 per unit.:
Proceed*—For construction apd woyking- capital Bust- / Dec. 27 directors authorized issuance and sale of approxi¬
mately $5,800>000 of new convertible subordinated de¬
pets—Mountain recreation center. Underwriter—None;
bentures which are to
be offered to stockholders of
offering to be made by officers and agents of company.
Aug. 13 filed

Co.

record Jan.

Wilson & Co., Inc.

Aug. 28 filed

for

20-year sinking fund de¬
be supplied by amend¬
ment.
Proceeds
To
itedeem
presently outstanding
first piortgage bonds, to repay bank loans and lor ex¬
$20,000,000

due

bentures

1976.

of

packing

Business—Meat

program.

firm.

it

Dec. 4

Mprtgage Corp., Chicago, III.

Alabama Power Co.

16

it

of

reported

was

stock

common

capital

one

new

Halsey, Stuart & Co. Inc.; Eastfftan, Dillon, Union
Securities & Co.; Equitable Securities Corp. and Drexel
& Co. (jointly); Lehman Brothers; Harriman Ripley &
Co. Inc. and Goldman, Sachs & Co. (jointly); Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly).; Morgan
Stanley & Co.Bids—Tentatively expected to be re¬
ceived on May 9.
W ' '„/;:*//;;/■/
/'

<jers:

•

Chicago

share for each

ment

&

Co.

Inc.;

Salomon

d/23)
Bids

are

Jan.

23

Bros.

Paul

RR.
v;--

.

expected

to

be

the company on
of about $3,000/000

received

by

000,000 issue of subordinated
be offered for subscription by common stockholders of
22, 1957; rights expiring on Feb. 7. Proceeds

equipment trust certificates to mature in 30 semi-annual

—To

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

record Jan.

provide

rentals.

working capital for expanding sales and

for

instalments

the

in

purchase

l-to-15

(1/22)
American Natural Gas Co.

Bids

Dec.

10, it was announced; company proposes, to sell
442,114 additional shares - of common stock through'a
rights offering to its stockholders on the basis of one
new share for each 10 shares held.
Price—To be under
the market.

derwriter

—

Proceeds—For

construction

To be determined by

.competitive'Bidding.

Co., Inc.; The
Offering—Expected early in 1957.
&

First Boston Corp.
,

American Telephone & Telegraph Co.
the

19

$250,000,000.

directors

authorized

Proceeds

For

—

a

new

additions

Underwriter—To be determined

ments.

(3/26)

bond

and

issue

of

improve¬

by competitive

bidding. Probable bidders: The First Bosion Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
Co.
Bids
Tentatively scheduled to be received on
—

March 26.

• Anaconda Co.
Dec. 27 the directors

offer

to

stockholders

tentatively approved a proposal to
the right to subscribe for some

additional capital stock.

Proceeds—For

expansion pro$100,000,000 in 1957.
•Underwriter—-Hallgarten & Co., New York. Registration
—Expected during latter part of January.

"gram

;

N

which

is

expected

to

cost

•

Appalachian Electric Power Co. (3/19)
was reported company plans to issue and sell
$29,000,000 of first mortgage bonds due 1987. Proceeds—
.♦To repay bank loans and for construction program. Un¬
Dec. 24 it

derwriter—To

be

determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union Securities & Co. and Kuhn, Loeb & Co.
(jointly); The First Boston Corp.; Harriman Ripley &
Probable

Co. Inc.

bidders:

Bids—Tentatively expected March 19.

tion—Planned

for

Feb.

22

for

the

Cleveland

-V//v

received

purchase

Electric

from

'

by the company on
it of approximately

Weld

&

(1/30)

Dec. 24 it

are

it

was

reported

one new

was announced corporation plans to issue and
sell $1,000,000 of 6% convertible subordinated debentures
due Oct. 1,1971 at par and 75,000 shares of common stock
(par $3) at $11 per share (the. latter for the account

*

of selling stockholders). Proceeds—From sale of
deben¬
tures, tor expansion and working capital. Business—A

short haul motor
miles

or

common

carrier

routes in

operating

over

3,300

Illinois, Indiana, Michigan and Ohio.
Underwriter—Paine, Web¬
ber, Jackson & Curtis, Boston, Mass,, and New York,
N. Y.
Offering—Indefinitely postponed.
Office—Grand Rapids, Mich.




'

-

/

*.

•-

:
company

share for each two/ shares held (with

it

was

reported company plans to issue and sell

200^00

shares of common stock..- Price—Expected to be
aroihid $6.80 per share. Underwriter—H. M. Byllesby &,
Co. Ihc., New York and Chicago. Offering—Expected in
'

February.

•'

.

*

.-

it Huntington National Bank, Columbus, O.
Dec.

27

it

was

announced Bank

intends to

(1/9) /

offer to

its

stockholders of record Jan. 8, 1957 the

(3/5)

right to subscribe
50,000 additional shares of capital stock (par $20) at

fqr
the

is planning to issue

$16,000,000

of first mortgage bonds due. 1987.
repay bank loans temporarily employed
to finance plant expansion.
Underwriter-?-To be determined by competitive bidding.
Probable bidddrs: Hal-

.

of

rate

one

new

share

each

for

four shares

held;

rights; to expire on Jan. 23. Price—-$40 per-share. Pro¬
ceed!—To increase capital and surplus. ;
^
/
^

J?

Illinois Bell Telephone Co./ (2/26)

••y-Lti

r

-

-

...

,

.

.

Pec#7,

•

.

.

authorized

Stuart & Co. Inc.; Dillon, Read & Co. Inc. and The <
an
Ohio. Co. (jointly); Lee Higgirisoh Corp. and Salomon
issu^Jof $40,000,000 first mortgage bonds, series E, due
Bros. & Hutzler (jointly); Eastman!Dillon; Union Secu-/ MarCji; 1, 1988. ProceedSr^Tp repay_short^term bonrowingsi^pd.: for cqnstruction. program. Underwriters—To be
rities & Co., and Glore Forgan & jCo. ( jointly).Bidsp— determined by competitive bidding. Probable bidders:
Tentatively scheduled to be-received on-MareK5. Regis¬

sey,

-

-

—

-

tration—Planned for Feb.
Connecticut
was

5.

v

^Light & Power Co."

'
.

'

;

/

j"

announced company will, ppobably offer

Hal^sjy, Stuart & Co, Inc.; Morgan Stanley# Co.; Kuhnf
Loeq; & Co.; Glore, Forgan & Co. and Eastman Dillon*
UnipjiSecurities & Co. (jointly). Bids—Expected to be
received

on

Feb. 26..

to its stockholders

,Oct. 11 it

,

Hubshman Factors Corp., New -York

Dec/So

Proceeds—To

Nov. 27 it

Associated Truck Lines, Inc.

//

14*day standby).
Price—To be named later. Proceeds
—Fqjr expansion and working capital. / Underwriter.—
Stroud & Co., Inc., Philadelphia, Pa.

..

Columbus & Southern Ohio Electric Co.

sell

> '

.

a

$20,000,000 of 20-year convertible debentures. Proceeds
—To repay bank loans. Underwriter—Allen & Co., New
York. Registration—Expected to be filed about Jan. 10.

and

7

rate'jtf

plans to issue and sell

compglny

■

Paper Co.

tion of 108,160 shares of common

«Ar Colorado Fuel & Iron Corp.

Dec. 20 it was announced

issuance

plans early registra-r
stock (par $5), which
intended for offering to common stockholders, at the

Dec.

Illuminating Co.

announced company

is planning

Rubber Co.

;;

Hamilton

Co.

was

&

1957.

Nov. 12 it was reported company plans to issue and sell
$25,000,000 of first- mortgage bonds in the Summer of
1957. 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.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter/Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.: White,

Registra¬

13.

be

$4,000,000 equipment trust certificates. Probable bidders:
Hklsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Un¬

program.

Probahld bidders r White, Weld & Co. and Drexel-& Co.

(jointly^, Blyth

"Jan.

V.

'

expected to

are

company

G. O'Neil, Executive Assistant to the Presidentj said the management was working on a plan to
revamp
the capital structure, and that the ;company
would like to come up with one issue of preferred stock.
He added that close to $18,000,000 will be put into cap¬
ital Investments during the fiscal year to end Nov. 30,

Cincinnati, New Orleans, Texas & Pacific Ry.

York.

Tire

General

Probable bidders: Halsey,

years.

reported

De4?4l. M.

Underwriter—Eastman Dillon, Union Securities

& Co., New

Dec.

it

from

was

$ale of about $20,000,000 first mortgage bonds. Pro¬
ceeds;— To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders:-Halsey, Stuart & Co.; inc.; Morgan
Stanley & Co.; Blyth & Co., Inc., Kidder, Peabody &
Co./khd Shields & Co. (jointly); Equitable Securities
Corp* and Eastman Dillon,. Union Securities & Cd.>
(johxtly); Harriman Ripley & Co. Inc. Bids—Tentativelyexpected June 6; ■
'■■*> » :

¥'.c

'

Pacific

&

17 it

and

(1/17)

Hutzler.

&

St.

Milwaukee,

clearing agent

(6/6)

Goqrgia Power Co.

for the

^ Chicago,

as

■

Dec.

by the company up to noon (CST)
purchase from it of $1,980,000 equip¬
trust certificates. Probable bidders: Halsey, Stuart

Jan. 17

Utilities Corp. ,'

Lyrifch* Pierce, Fenner & Beane acted
in previous offering to stockholders,

Bids will be received
on

(1/23)

$13,000,000 to $14,convertible debentures to
a

RR.

Public

F. Tegen, President, announced that the
stockholders are going to be offered approximately
647J)jpO additional shares of common stock (par $5) on
the b^sis of one ne;w share for each 15 shares held on or
abotft'March 11; rights to expire on March 29, Merrill

neii
Bell

Illinois

■

$<15, A.

;

Eastern

&

*

the rate of one new share for each
Stockholders will vote Jan. 8 on

at

—

General

& Co.

R. S. Dickson

its

held.

Richmond, Va.

Telephone & Teleleiepnone
leiegraph Co. in february, 1956, sold its rights;tcx 14,464
shares (of a 66,640 share offering to stockholders) to
*

announced bank intends to offer to

apprbving the offer. Price—$45 per share. Office—;
Richmond, Va. Underwriter
Scott & Stringfellow,;

Price—At par ($100 per share). Pro¬
ceeds—To reduce bank loans and fbr new construction.
boutnern
Southern

stock

five"': shares

company

the basis of

on

was

stockholders rights to subscribe for 45,0C0 shares of

Inc.;

four shares held.

Underwriter—None.
JNone.

American Machine & Foundry Co.

Co.

&

Stuart

has applied to the
North Carolina P. U. Commission for authority to offer
to its common stockholders an additional 58,310/ shares

(5/9)

reported company plans to issue and sell
about $19,000,000 of first mortgage bonds. Underwriter—
To be determined by competitive bidding. Probable bid-

•

Halsey;

bidders:

Carolina Telephone & Telegraph Co.
Nov.

was

Dec. 21 directors voted in favor of

ic First & Merchants National Bank

De^/,20 it

Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc. (jointly);
W. C. Langley & Co. and The First Boston Corp. (joint¬
ly); Equitable Securities Corp.; Blyth & Co., Inc.; Kid-,
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane (jointly). Offering—Expected in 1957.

and Iryvin Jacobs & Co. of Chicago)
plans a public
offering of $1,000,000 cla& A 6% participating convert¬
ible stock (par $1). Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Expected in February.

Dec. 17 it

ner-jjte Beane and Kuhn, Loeb & Co., both of New York.

bidding. Probable

reported this company "(to be surviving
following merger of First Mortgage Corp.

,

Offering—Not expected until after Jan. 1, 1957.

$15,000,000 and :$20,000,000 of first mortgage
bonds. Underwriter—To be determined by competitive

was

tha^

Subordinated debentures. Proceeds—For expansion facilities in order to place the DC-8 jet airliner into i
production. Underwriters—Merrill Lynch, Pierce, Fen-

of

Underwriter—Probably Lehman Bro¬

reported company plans to issue and sell

was

;VVV/

(2/4-8)

19, Donald W. Douglas, President, announced

the ^pany plans to issue ajid^sell $2JOO0;OOO convert.
ible

—

between

Prospective Offerings
corporation

on

Power & Light Co.

Carolina

Oct. 15 it

Un¬

derwriters—Smith, Barney & Co.; Glore Forgan & Co.
pnd Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.

Advance

Douglas Aircraft Co.
Nov.

thers, New York.

—

pansion

Jressunderwriters—Goldman, Sachs & Co. and R.*W. Press-?
prich & Co., both of New York. /

the basis of $100 of debentures
each nine shares of stock held.
Proceeds—For ex-<
30, 1957

pansion program.

Price—To

Shear^:

early in 1957 some additional common
stock, to finance part of its construction prograih. Under¬
writer—None.

Indianapolis

Novtj2T," H.
ent

•

Consolidated

Dec.

Edison Co. of New York,

Inc.

.

..

Searing, Chairman,- announced company
is planning an initial issue of not to exceed $55,087,300 of
15-year convertible debentures early, in 1957, probably
the latter part of February. They will be offered to
com(mon stockholders for subscription at the rate pf $4
primcipal amount of debentures for each share - of common
stock

15, H.

held.

approve

an

R.

Stockholders

will ;be "asked

on

Feb.

5

to

authorized issue of $125,000,000 convertible

/

'

.

:

Power /A. Light Co;

T. Prichard, President, annofmoed that pres-

^tans contemplate

an issue of $6,00(M)00 of preferred
stocks/some time in' 1957 if market conditions make it
feasible, and an issue of $8,000,000 in bonds in. 1958. Tem^
pcrafy bank loans are available and probably will be
util^ed, during at least part of 1957. Additional securitieS'will need to be sold in 1959 and. I960, amounting
to approximately $14,000,000. Proceeds—To repay- bank
loahs-'and for new construction. Underwriter—May be
Lehraan - Brothers, Goldman, Sachs & Co. and The First
Boston Corp., who underwrote last equity financing.

Volume

185

Number 5600

.

...

The Cotnmercihl and Financial Chronicle

3®

(35)
•

International

Bank

for

Reconstruction

and

Bank

England Electric System

New

-

^

Development ("World-Bank")
(l/9-16]T^
Dec. 27, Eugene R. Black, President, announced that this-

v-

'

•

Jan. 3, 1950, it was announced
company plans to
its subsidiaries, Essex

\

Pittsburgh & Lake Erie RR.

merge

Cbunty Electric Co., Lowell Elec¬
tric Light Corp., Laxvrence' Electric
Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one
company
during 1956* This would be followed by a $20,000,000

to make an offering of $100,000,000 20Price—Expected at a price to yield between
to maturity. Y Underwriters—
Morgan Stanley & Co. and The First Boston 'Corp/, both of NewV : first mortgage bbnd issue by the resultant
company, the
York. ~
'
aame of which has not as yet been determined.
Under¬
'■; .; •
' •• *:
writerMay be determined by competitive bidding.
Interstate Fire & Casualty Co.
.V
; J • ; % J
Probable bidders: HalSey, Stuart & Co. Inc.; Kuhn, Loeb
Sept 26 it was reported company plans to issue and sell
&-Co., Salomon Bros.
Hutzler, Eastman Dillon, Union
75,000 additional shares of common stock. Underwriter
Securities* & Co.-and Wood, Struthers & Co.
—White & Co., St. Louis, Mo;. Offices —
(jointly);
Chicago and*
Lehman. Brothers; Tbe First Boston;
Corp.;; Equitable.
Bloomington, 111. • S.
Y/.
•;,/*;
Y -\Y*:•
;
Securities Corp.; Merrill Lynch, Pierce, Fenner &
Beane,;
★ interstate Power Co. Y ' ^Y/'/Y
Y Kidder, Peabody & Go. and
'***••
White, Weld & Co. (jointly).
Dec. "20 it was reported company expfcct/; to issue and'
Offering—Expected in first half of 1957.
'
V,:
sell -in May $6,500,000* of, first
mortgage boryds.^ tUndCf- . "•
New England Power Co;^ (2/19)r/'
writer-^To -be, determined by, competitive bidding.
Prob-/ Jan.
3, -1956; it was announced company plans to issue*
able bidders: Halsey; Stuart & ,Co. Ind.X Merrill
byncb^ ^ and sell ^10,000,000 of first* mortgage bonds
early in
Pierce,: Fenner* & Beane and Kidder/ Peabody & Co.
v|957^ Underwriters ^* To be. determined by competi(jointly); Salomon BrbsY&'YHutzler; White; Weld & CbY
z tive
bidding.-Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhri, Loeb & Co., Salomon Bros. .& Hutzler? East; man Dillon, Union Securities & Co. and Wood, Struthers
proposes

bonds.

year

4.30%

4.40%

to

Bids

expected

are

to

(1/24)

J

be received

by this company on
Jan. 24 for the purchase from it of $6,720,0i0
equipment
% trust certificates to be dated Feb.
15, 1957 and to mature
in 15 equal annual instalments to and

1972.

Probable bidders:

including Feb. 15/
Halsey, Stuart & Co. Inc.; Salo¬

Bros. & Hutzler.

mon

,

>
of

•

& Cb.~

.

Jan. 2-it
the

wag

announced

that

1957

Of securities to the-extent of.
$5,000,000 to
exact amount to be raised and the

-

$6,000,000. The

'

type of securities to

be sold

under, consideration

are now

by the management;

^

*'

'

..

;

.

expected

be

to

Public Service Co.. of Oklahoma (2/4)
X
Dec. 10 it was reported company plans to issue and sell

about $12,000,000 of first mbrtgage bonds due 1987. Pro¬
ceeds—To

repay bank Joans and. for new construction.
Underwriter—To be determined by. competitive
bidding.'

Probable biddersY Halsey, Stuart & Co. Jnc.; Kuhn, Loeb
& Co. and Eastman
Dillon, Union Securities &:Co: 4. joint-,

ly); Blyth & Co.,Tnc:; The First Boston Corp.; Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
jointly); Glore, Forgan & Co.; ^Salomon Bros. & Hutz¬
ler. Bids—Tentatively scheduled for Feb. 4; Y
St. Louis-San Francisco Ry.
Sept. 5 company offered not exceeding $61,600,000 of
50-year income 5% debentures, series A, due Jan. 1,2006,
154,000 shares of common stock (no par), and cash
equivalent to the unpaid portion of the preferred divi¬
„

received

;

-

Jersey Central Power & Light Co.
Sept. 12/it; was announced. company plana to issueYanfl
sellv $8,000^)00 of first mortgage bonds** Underwriter-^
To be determined, bycompetitive bidding. .Probable;;
Y
bidders:- Halsey, Stuart & Co. Inc.;
Kidder,-Peabody &r
Co.: The, First Boston Corp.: .White, Weld,
<S/Cd?; East-;:
X
fnan Dillonr Union Securities &
Co., Salomon" Bros. & 7
,

"

dend which has been declared payable in
1956, in ex¬
change for its 616,000 shares of $100 par value 5% pre¬
ferred stock, series A, On the basis of $100 of debenturesf one-quarter share of common stock and unpaid

Y

New Jersey Power & Light Co.
12 it was announced company plans to issue and
sell- $5,000,000 of f irst. mortgage bonds.
Underwriter—

Sept

To' be

determined; by competitive bidding. Probable
bidders: Halsey,^Stuart & Co.; Kuhn, Loeb &
Co.j Lehmane Brothers and Salomon Bros. & Hutzler (jointly);
Eastman Dillon,'Union Securities & Co. and
White, Weld
& Beane ?% & Co. (jointly);- Equitable Securities Corp.; The First
f Boston Corp.; Merrill Lynch, Pierce. Fenner & Beane.
Y*v

dividends of $2.50 per preferred

.

and

(jointly)'.

MerrilL

*

•;

•

Lynch," Pierce,

:';

•'

-

Fenner
" Y

'

v

preferred share.

25, 1957.

Dealer-Manager—Eastman Dillon, Union Secu¬

Exchange Agent
Manhattan Bank, New York.
Sept.

.

10

it

-

$25>0Q0,OOO installment due April ;
1, 1957 on its 4% % term loan may have to be providedby the creation of debt by, or the sale of equity securi-/ Y
ties, of this corporation or Henry/J. Kaiser Co., or
through' the public or private sale of a -portion of the

S^purities of the companies: owned
Kaiser Co., or*-of certain other assets.
First Boston Corp., New York.
'J ^
★ Koehring .Co.
'

Dec, 26 it

by

the

J.-

Henry

Underwriter—The

y

*-S

-v ••

Macy

-

Dec

19

(R. H.)

it

was

,

announced

of

plans to offer

company

convertible

New

Bids

Webster

.York,

;

Chicago

are-expected

to

& St; Louis RR.

be

received

by

York.

" : YY_.-

•

'

-

i.-,.

&

Co.,; both

preferred stocks and

on

New York State Electric & Qas

Underwriter

.<

(1/31)

,

as

of

19.

about Jan. 30, 1957; rights to ex¬
(At Sept. 30, 1956 there were out¬

v

43,727,585 shares).
The financing may also
offering of debentures not exceeding $100,000,000. Proceeds — For exploration and, development
costs and for plant expansion.
Underwriter — Morgan
Stanley & Co., New York.

.

an

Southern

Dec.

27,

E.

California

R.

Edison Co.

(2/19)

Peterson,

Financial Vice-President, an¬
plans to issue and sell $37,-.
500,000 first and refunding mortgage- bonds. Proceeds—
To help finance construction, program,;.Underwriter—To
be determined by competitive bidding/ Probable bid-;
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.
nounced

that the

company

and Dean Witter & Co. (jointly); Blyth & Co.,
Inc.J
Smith, Barney & Co. (jointly); The First Boston Corp.- Kuhn,. Loeb & Co. Bids—Tentatively expected ta be
and Glore, Forgan & Co.
received on Feb. 19; *
V
;
(jointly)Harrimfan--Ripley & *
Co. Inc.; Kidder, Peabody & Co. and Salomon Bros. & *.
Southern Co.
Hutzler (jointly)...
*
^ Dec. 24 it was reported company plans to issue and sell

of

V. Y*YY-.X

>.

Metropolitan
Sept.

12

it

the sale

of

Edison

Co.

Y

-

announced that company is
considering
$22,000,000 first mortgage bonds in the next

was

by competi¬
Stuart & Co.

bidding; Probable bidders: Halsey, =
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea-

:

★ Mississippi

Power Co.

•

(4/11)

ders:

Jan.

Missouri

.

Bids

are

Pacific RR.

to

Drexel

&

on

to

(1
Nov.
sell

States

15

equal

*

&

Telegraph
\

the

add

in¬

.

29)

20

annual

Halsey, Stuart & Co, Inc.;
~
V '*

Telephone

directors approved

!$35.000,000 debentures.

loans

in

for

a

Co.

—

To

v'

repay

ties
-

Co.

ders:

&

Co.

Jan.

|

(jointly).

(i

on

Bank

9)

13

it

wic'i

&

be

received

of

Commerce,

a

stock

held.

Memphis,
"

announced

on

stockholders will

Tenn.
Jan.

per

share.

Ross, Memphis, Tenn..




*

or

about

oversubscription privilege); rights
Proceeds—For additional

15.

stock

determined

White,

by

Weld

of

Pennsylvania

invest-

Power

Co.,

a

competitve

&

Co.
company

White, Weld & Co. (jointly); Equitable Securi¬
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.; Kuhn, Loeb & Co.
(2/7)

Underwriter—Left-

Securities

17, K. S. Adams, Chairman of the Board, announced
the company plans to issue and sell about $171,000,000 of convertible subordinated debentures to stock¬
the basis

common

to

on

expire

ceeds

—

loans

and

The

Feb.

of

stock

25.

$100

of debentures

held

about

Price—To

be

Feb.

for

each

7; with

named

later.

20

rights
Pro¬

To

First

repay about $86,000,000 of short-term bank
for other corporate purposes.
Underwriter—

Boston

Corp.,

pected about Jan. 16.

New

York.

Registration—Ex¬

(jointly).
Indiana

Southern

Gas

&

Electric

Co.

(1/22)

Nov. 16 the company filed with the Indiana P. S. Com¬
mission an application for authority to issue and sell

$5,000,000 30-year first mortgage bonds due 1987. Pro¬
repay bank loans and for construction pro¬
gram.
Underwriter-LTo be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Equitable Securities Corp.; Kuhn, Loeb & Co. and Salo¬
ceeds—To

mon Bros. & Hutzler (jointly); Blair & Co. Incorporated;
Kidder, Peabody & Co.; Eastman, Dillon, Union Securi¬
ties & Co.; The First Boston Corp.; White, Weld & Co.
and
Shields
&
Co.
(jointly).
Bids—Tentatively ex¬
pected to be received on Jan. 22.

SoutherrPPacific Co.

(1/3)

Bids will be received by the company up to noon
on

Jan. 3 for the

ment

nual

trust

(EST)

purchase from it of $9,600,000 of equip¬

certificates, series WW, due in 15 equal an¬
Probable bidders: Halsey, Stuart &

installments.

Qo. Inc.; Salomon Bros. & Hutzler.
•

on

Dec.

on

offering;

ley & Co.; Kidder, Peabody & Co. and Merrill Lynch,
Fenner & Beane (jointly); Lehman Brothers?
Dillon, Uaion Securities & Co. and Equitable

Southern

Bids will

Phillips Petroleum Co.
.

stock.. Di¬

Pierce,

plans to issue and

$6,000,000 of first mortgage bonds. Underwriter—
be
determined-by competitive bidding.
Probable

shares of
8

proposal to offer 25,000 additional shares
on
the basis of one share for
each five'

Price—$40

be

holders
■

•

vote

on

.that

I,, I

■.
was

approving

of capital
shares

to

•

National

Nov.

Bids—Expected

29.

held

Co.;and

construction

determined, by

an

shares

10

bidders: Halsey, Stuart & Co. inc.; Merrill
Lynch, Pierce,
Fenner & Beane, Eastman
Dillon, Union Securities &

tank

program.
Under\vritei*-To
competitive bidding.
Probable$ndHalsey, Stuart-& Co. Ihc.; The First Boston Corp.;
Morgan Stanley & Co.; Drexel & Co. .and Dean Witter

be

Feb.

each

Pennsylvania Electric
Sept. 12 it was announced
To

.«•

proposal to issue? and

Proceeds

on

common

common

Underwriter—To be determined by competitive, bidding.
Probable bidders:-The'First Boston Corp.? Morgan Stan¬

stockholders at the rate

common

for

program.
Underwriter
bidding. < Probable
Co.; Lehman Brothers and
Bear, rStearns & Co. (jointly); Merrill Lynch, >Pierce,
Fenner & Beane and
Kidder, Peabody & Co. (jointly);
Morgan Stanley & Co.; The First Boston Corp.

sell

Mountain

in

bidders:

(1/10)

mature

share

31, 1957 (with

expire

—To

expected to be received by the company. oruJan..
purchase from it of $4,875,000 equipment trust

certificates, series G, to

stock to its

new

1,000,000 additional shares of

rectors to meet Jan. 17 to determine method of

Eastman

subsidiary, and for construction

April 11.

10 for the

stalments. Probable bidders:
Salomon Bros. & Hutzler.

one

ment

Co. Xjointly).

be. received

common

of

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
& Beane;
Kidder, Peabody & Co.;* Blaif & Co.
Incorporated; Eastman( Dillon, Union Securities & Co.,
and

(2/1)

company applied to the Ohio P. U. Commission
authority to issue and sell 580,613 additional shares

of

Fenner

Corp.

about

(1/16)

Dec. 21
for

Securities

Ry.

equipments trust certificates.
Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Ohio Edison Co.

reported company plans to issue and sell
about $6,000,000 of first
mortgage bonds; Underwriter—
To be determined
by competitive bidding. Probable bid¬

Equitable

Western

Bids, are expected to be received
by the company on or
about Jan. 16 for. the purchase from it of
approximately

ders:

was

Kids—Tentatively expected

&

$4,650,000

body & Co. and Drexel & Co. (jointly); The First Boston
Corp. Bids—^-Not Expected to be received until May, 1957.

Dec. 24 it

r

.

Norfolk

16 months.1 Underwriter—To be determined

tive

Probably

—

standing
include

company

held

pire about Feb.

(2/14)

the

shares

10

Securities

purchase from it of $6,400,000 equipment
Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
■.

Goldman,/Sachs

New

redeem

etc.

program,

<
27 it was announced the company plans
early in
1957 to offer additional capital stock to its stockholder*
jon the basis of not.more than one new share for each

Feb. 14 for the

to

up

debentures

!

Nov.

Kidder, Peabody & Co. and
Corp. (jointly)} Lehman
Offering—Expected in March, 1957.

&

Corp.
to, /its common
Oct. 24 it was announced company plans to sell in the
stockholders on the basis of-'$100" of debentures for
each., N
14 shares of stock, held.
Spring of 1957, $25,000,000 of debt securities and an
Stockholders on Jan. 30 will;'
additional $20,000,000 in.£.1958. Proceeds — To finance
vote " on- authorizing an
} issue of $25,000,000 of these?
construction program. Underwriter—To be determined
debentures.
Price—T.o -be named later. Proceeds—For
*
by competitive bidding. .Probable bidders: Halsey, Stu~'
working capital and expansion program. Underwriters—y art & /Co.
Lehman' Brothers and
Ilic.; Kuhn, Loeb & Co.; Blyth & Co. Inc. and

$12,377,000

Proceeds—To

expansion

Socony Mobil Oil Co.

Securities & Co. (jointly); Kuhn, Loeb & Co. and A. C.

trust certificates due in l-to-15
years.

.

& Co.,.Inc.

stock.

mon

Cot; Blair & Co. Incorporated; The First Boston Corp.;
Equitable - Securities Corp. and Eastman Dillon, Union

+

*

/

Blair & Co. Incorporated, New York.

v

>

The Chasg

—

reported that the company plans longfinancing and/or issuance of additional com¬

for

Brothers.

4/*:Y[V'^••

Feb.

was

writer—To be determined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Stone

was reported
company plans to issue and sell
200,000 additional sbares of common stock (par $2);YUn- "
derwriter—Loewi & Co., Milwaukee, Wis.
•'

term debt

gage bonds. Proceeds—For construction program. Under¬

Allyn & Co. Inc.jointly)

'

on

.Seiberling Rubber Co.

v-'.; New Orleans Public Service, Inc.
Industries, Inci :v;', ;
'
>*
Nov. 28, EYE.
Trefethen, Jr., Executive Vice-President,'. Nov. 13,.Edgar H. Dixon, President, announced that this
stated that.it is anticipated that a
portion of the funds.. company plans to issue, and sell $6,000,000 of first mort¬
necessary to rpbet the

The offer will expire

rities & Co., New York.

Kaiser

<

share in exchange, for

each 5%

,

Hutzler

-

1

)j rJ^ehmah Brothers;' The FirSt Boston;

are

Underwriter-Y-To

Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody Sc Co. and
White, Weld & Co. (jointly); The First Boston Corp.;
Blyth & Co., Inc. and Smith, Barney & Co. (jointly);
Lehman Brothers; Harriman Ripley & Co. Jnc.
BidsExpected to be received early-in 1957.Y.
j
:

New Jersey, Indiana & Illinois RR.

r

Bids

;

Y

reported company plans the issue and said

new construction.
be determined by competitive
bidding.

(1/10)
by this company on
Dec. 27, Eugene H. Walte, Jr., announced
Janv 10 for; the purchase from it pf .$1,400,000 equipment
ecftppany plana
in the near future to sell-an issue of
convertible deben-' * trust 'certifiCatqsr^ Probable bidders: Halsey, Stuart &
•t Co.
tures/X Proceeds—For 'expansion program. .T;"v
Inc.? Salomon Bros.. & Hutzler.
'//>.
?
★ Jefferson Lake Sulphur Co.

ii'was

$30,000,000 first mortgage bonds. Proceeds—To repay

bank loans and for

Corp.T Equitable Securities Corp.; Merrill Lynch, Pierce,
FennerBeane, * Kidder;>PeabQdy & Co. and Wbitp
Weld;
C&. (j6intly)X; Bids—To be received Feb. 19 at
441 Stuart St, Boston
16, Mass.*
•- • -'Y Y

i

cash-required to finance v
construction program.-will' necessitate * the sale1 -

Public Service Co. of Colorado

Get. 8

be

Ry.

(1/8)

received by the company up to noon

(EST

Jap. 8 for the purchase from it of $5,540,000 equip¬

ment trust

certificates, series UU, to mature in 20 equal

semiannual

Stuart

&

Texam

Co.

installments.

.Probable

bidders:

Halsey,

Inc.; Salomon Bros. & Hutzler.

Oil

Corp., San Antonio, Texas
announced that the 1,000,000 additional
shares of common stock, recently authorized by the di¬
rectors, will provide the company with the additional
working capital it will require for further expansion.
Oct.

1

it

was

£>rl

nn

mnriP

I

Financial Chronicle

The Commercial and
?.r.

35

Nov. 27 it

Phoenix, Ariz.v( 1/15)

announced stockholders will vote Jan. 15,

was

approving

on

each

(sufficient to raise about $11,600,000 or $12,-

COO.OOO).

Proceeds—For

of first

purchase from it of $3,780,000 equipmentcertificates to be due in 15 equal annual install¬
Probable
Bros.

bidders:

Halsey,

Stuart

Co.

&

Hutzler.

&

Washington Gas

Light Co.

-

repay

;

Blair

&

Merrill

Co.

Stuart & Co. Inc.;
and Baxter & Co. (jointly);

Incorporated

Pierce.

Lynch,

Fenner

Securities Corp,

Webster

Beane

&

Stone

and

Corp.;

19,

A.

convertible

&

(jointly); Kidder, Peabqdy &

Equitable Securities

Co.;

Halsey,

bidders:

To

—

Securities & Co.; The First Boston Corp.

r

Wrigley

from

stock,

of common

factoring industry
and
a
con¬
tinuing rise in the number of
employees despite increased mech¬
anization
in both
the
operating
and manufacturing fields

service

for

mand

service

sewerage

expected

increase

to

of

construction

Of

1957

to

in

20%

the

the

in

six

of

market

would

absorb

the

public

bond issues
interest rates.

sonable"
Public
creased
service

Water

many

pected to raise the volume of
struction

in this field

to

con¬

1956.
ket

by

Here

to be

deter

bond

there

mar¬

needed

some

$1.3

non-farm

the

yond

Drilling:

suburban

con¬

reach

of

Increases
homes

public

severe 1956

annual

level of

the

of

over

Power Equipment:

have

added

for

therefore

new

the

has been

volume

expected

a

1956,

record year.

clude

steam

steam

condensers

turbine

Indications

are

activity in the

to

which

at

celerated

the

12

in

industrial

will continue to expand
rate

during

an

ac¬

next

months.

Equipment:

Unspent
1956 will

of

to

of

consumers

1957

are

expected

to

this

billion

area

in

should

1957.

exceed

$10

This

reflects, a
corresponding increase in sales of
medical and hospital equipment
and

supplies. It

is estimated

that

shipments

of surgical and
instruments, surgical ap¬
pliances
and
supplies,
dental

medical

,

t>e

added

sulting
some

to

in

12.5%

transmission

those
an

for

1957,
improvement

in the

use

and

of

re¬

of

power

distribution

equipment such as transformers,
circuit"
breakers,
heavy
power
switching, and allied items.
An

be

increase of about

10%

anticipated in the field of




diminu¬

first

half

in

general

which

expected

Was

the

slichtly

record

volume.

exceed
overall

to

1955

>iv

v.;
Production

Shoes:

of

footwear are expected to continue
at record levels

during the coming
equitable distribu¬
tion of production will occur in
1957, with somewhat less volume
A

year.

more

first

the

six

months

and

a

greater output in the second half-

Total for the
closely
approximate
durirtg 1956.
year.

should
production

year

point to

an

increase of 11 to 15%

in

of

business

sales

first

the

half

of

machines

1957

over

in

cor¬

responding sales in 1956.
employment will
experience a seasonal downswing
in the first half of 1957, but total
facturing

and

production of electronic equip¬
ment and components is expected
in

be

the

at

same

annual

rate

the

corresponding period
1956—$6.1 billion.
/ *
Production
ucts

(TV

record
may

of

of

prod¬

consumer

radio

and

as

equipment
ophthalmic
mate

and

supplies,

and

goods will approxi¬
$350 million in the first six

months

of

1957.

Scientific

Industrial

and

indicated

may

1956 "of

new

year,

an

20%

with

overall

increase

in

the preceding
production peaks

over

new

In¬

industry

components will be

of

receivers.

and

to

authorized.

been
is

taken

there

quarter,
of

crease

the

six

first

second

could

to 20

15

similar

the

for

If

be

in¬

an

million pounds
months of 1957

the

supply available in the
corresponding period of 1956, at¬

over

tributable

both

to

diversions

increased Nicaro

some

and

production.

If the maximum increase indicated
is

available

made

the

half

first

could

of
the

exceed

to

in

industry

1957, demand
supply for the

period by 40%>.
Output

total 4,500

months of

compared" with

mill

in

tons

the

prod¬

new

entire

Titanium sponge production,
mated

at

esti¬

14,5Qp tons for the full

1956,

12,000

the

year,

estimated 5,000
year
1956.

an

the

for

tons

total

may

in

tons

as

first

half

of

of

the

much

zinc
slightly
of

as

1957.

Mine
and

production

lead

in 1957

zinc

players, and related items)

both

increase

should

1956. Consumption

over

for

diecasting metal and for
galvanizing shows a definite up¬
ward
trend, as does lead
con¬
sumption for tetraethyl lead, bat¬
teries, and cable.

in

1956

•record

hands

of -the

year-end

inventory carryover, in the
of
retailers
and
whole¬

salers.
ever,

view

Factory

Sales

inventories,

at normal

are

of

how¬

Hawaiian

Pineapple

high

unit value color
television receivers have not yet
expanded to. the, point where this

Military
should

electronics

production

increase

offering to its

common

Dec.

record

of

Ltd. is
stockhold¬

1956 the
right to subscribe on or before
Jan. 21, 1.957 for 413,920 additional
shares
of
common
stock
(par
$7.50) at $10 per share on the

ers

basis

of

one

share

new

variatons

in

receiver

production,

largely

responsible

radio
was

fbr

pushing
and

em¬

highs in the final

1956.

of

Dollar

new

and

and

production

ployment to
months

television

volume

components

production

of

(tubes
should

electronics

and

parts)

continue

at

■

s

to-

ACF-Wrigley. Proceeds
use

by the parent
ware¬

Underwriter—Allen

incorporated under the laws
Territory of Hawaii on Dec.
1932. Its principal executive
offices are
at
650
Iwilei
Road;
Honolulu, Territory
of
Hawaii;
The company has two pineapple
plantations: The Wahiawa Planta¬

was

of the

30,

Island

of
on

tion

is

situated

on

the

the Island of Lanai.
owns

a

Iwilei

plant

District

another

Honolulu

of

and

in

San

company

also

located

cannery

Calif.

Jose,

The company

and a can man¬
located in the

cannery

ufacturing

The

all of the outstanding stock
of Plantation Housing, Ltd., a Ha¬

owns

waiian

corporation; F. M. Ball &
Co., a Nevada corporation with
principal place of business and
two canneries located at Oakland,

Calif.; and Paulus Bros. Packing
Co., an Oregon corporation with
principal place of business and
cannery located at Salem, Ore.
*

The

company's principal busi¬
is an integrated business of
planting,
growing,
harvesting,
buying,
canning,
freezing
and
otherwise
processing, transport¬
ing, and marketing pineapple and
pineapple juice.
For the fiscal
year ended May 31, 1956, the gross
sales of pineapple arid pineapple
juice were aprpoximately $46,000,000. The company "grows sub¬
stantially all of its requirements
of pineapple.
The company has paid cash
dends

on

its

common

fiscal year since

divi¬

stock in each

In each of
and dur¬
ing the current fiscal year to date,
the company has paid quarterly
1936.

the last three fispal years

dividends of 20 cents per share on
common

25th

stock

on or

about the

of August, November,
February and May of each year to
days

about

the mid-;

month.

It is the

held.

underwritten

by

for

The

net

a

by Dean

Calif.
proceeds from the sale
are

working capital.
will

be

applied

of

which

to be added to

Initially,
to

of short term bank
ceeds

be

that

the deduction
loans, the pro¬

had

been

It is expected

now

any

the company may

offered

will

dividend which
pay in February

1957.

With R. S.

Dickson

(Special to The Financial Chronicle)

RALEIGH, N.
Streb has joined

C.—Raymond

B.

the staff of R. S.

Dickson & Co., Inc., Hood System
Bank

Building.

Samuel Franklin Adds
(Special to The Financial Chronicle)

LOS

Ltd.

ANGELES, Calif.—Andrew

J. Corcoran is

Samuel

B.

now

connected with

Franklin

&

Co.,

215

West Seventh Street. Mr. Corcoran
was

Co.

shares

participate in

used

son.

Pineapple

outstanding.

all

they

principally to finance packing and
carrying in inventory of products
of the company and its subsidiar¬
ies during the peak canning sea¬
.Hawaiian

2,069,600 shares of Common stock
to

each

offering is
group of in¬

Witter & Co., San Francisco,
of these shares

tof nay quarterly dividends on the

The

vestment bankers headed

to go up
steadily. This sector of the indus¬
try already has grown to the point
that it can partially offset seasonal

shares

28,

dustrial

is expected

offering

the

die of each such

Bj Deal Witter Group

four

electronic equipment and

.Jr

■

~

present intention of the company

moderately, and
production of commercial and in¬

components

:

share of Proper¬

one

holders of record

Offer Underwritten
Hawaiian Pineapple Co.,

levels.

holders,

shares of

its

six months somewhat further than
in

.

ness

titanium

of

may

first six

I.

■

• -

»

share..

'

-

Oahu and the Lanai Plantation

radio

'

receivers,

be cut back during the next

electronics

struments: This $3 billion

tele¬

and

Government ac¬
in the first quarter of 1957

action

/

Registration—Expected shortly.

greater

a

shipment

has

-

shopping centers.

industry of all nickel scheduled

year

Electronics' .'manu¬

Electronics:

to

by

counts

'

include individual locations,

Miscellaneous Metals: Diversion

ucts

Indications

Machines:

Business

two

may

and

radio

of

household

for

•

sales

and

sites

numbers

for

'*

.

option

demand for
military and in¬
dustrial electronic equipment and
for
maintenance
of
increasing

to

Inc.

the basis of

on

for

Containers: Container manufac¬
turers

which

components

television

the

over

total

Lleetrical

utility apporpriations for

the

for

output

indicates

no

will contribute substantially to the
preceding year for consumer
products dollar volume
the past five years. Expenditures,
in the period.

boilers.

nuclear fields

sales

services, have shown an average
annual increase of approximately
6%

„

many

1956.

equipment and services,,
exclusive
of
drugs, and
burial

Tnese in¬

that

for

1957

$210

medical

generators,

and

estimated

in

the

Medical
Equipment and
Sup¬
plies: / Personal expenditures for

generating

of

than

sing,
developing,
or
any
other
photographic reproduction service.

•

equal

abroad

figure in the first half of 1956.
This total does not include proces¬

approximately

are

re¬

$864 million, an increase of
about. 6%)
over
the
comparable

equipment during the first half of
1957

and

total

Electric util¬

power

from

higher

and,

months

re¬

present

eight million kilowatts to installed
capacity in the past year.
New
orders

1956

photographic equipment, material
and supplies during the first six

drought

450,000

for

at

Photographic Products: Produc¬
tion

water wells.

ities

billion

be

million

water

iii central southern states will

quire continuance

expected

are

be¬

supplies, growing use of sprinkler
.irrigation
systems
in
eastern
states, and the

and

the

indications that 1957

remittances
Well

reaching

estimated

are

are

should
in

1957

feature

foreign market for United States
films'
has
been
expanding
and

struction.
Water

be

1957.

in

ceipts may exceed that figure. The

factor which

a

in

New

be

.

10%.

represent

about

16%.(pver

again the

appears

could

about

will

receipts

o$ the comparable period of

1957

The

an
important factor
maintaining . high level boxoffice
receipts, f-terdss. jDox-of f ice

in ,the first

of

in

of

in

ex¬

that

equipment used.

Pictures:

•pictures

of

half

tion

should

there

for the type

this business to about

water

following occurrence
shortages in 1956 is

in¬

an

bright also, with
automation
and
replacements
helping to bring an increase in

screens

demand for public

10 %

for

for motors and industrial

Motion

In¬

is

1957

controls appears

"rea¬

Supplies:

of

of about

outlook

A

neces¬

at

months

of electrical

tne

factor in this outlook is the ques¬
tion as to whether or not the bond

sary

continuation of industrial

a

crease

half

1956.

lighting

the past year

over

that

equip¬

expansion, the outlook in the first

is

volume

that

over

corresponding period

Due to

and

first

devices,

orders

view the first
part of 1957 with confidence and
ly to a vigorous campaign for optimism. The consensus here is
residence and factory rewiring to
that
business
will
at
least
ap¬
meet growing uses of electricity.
proach the high level of 1956,

Increased de¬

for stream pollution abatement

wiring

ment,

distribution

receiver

fixtures and appliances due large¬

.

Public Sewerage:

and

vision
offset

■

i

1-for-^L

a

per

Ladd, Dayton, Ohio.'
r

•

and

Co., New York.

volume

and unfilled

••'

1956 rates. A decline in

dollar

new

right to subscribe for?

develop locations principally for

house

about the

volume trend in

debenture

company,

&

strumentation fields. The monthly

the

15

Properties,

ties stock for each
—To

of

being established for laboratory
equipment, optical, electrical, elec¬

Commerce Department Survey
Indicates Good Prospects Ahead

-v

stockholders to be

cisco/Calif.

14

page

Jan.

6 it was announced this company, a newly formed,
subsidiary of ACF-Wrigiey Stores, Inc., plans to offer
its shares of capital stock for subscription by the latter's

tronic and recorder-controller in¬

Continued

"

/

-

Dec.

Underwriter—Dean Witter & Co., San Fran¬

stock held.

Eastman Dillon, Union

basis

the

on

shares

eight

for each

share

preferred

one

%

(par $25)

stock

about

or

<$/15)

Bank'plans to efferto its. stock¬

Underwriter—Greene 8c

L.

preferred

on

•

(1/23)

Light & Telephone Co., Inc.

announced

was

175,000 additional shares of. capital stock on
basis; rights to expire on Jan. 30. Price—$22

Mullergren, President, announced that
the company plans to offer to its common stockholders
of record Jan. 22, 1957, approximately 65,000 shares of
Dec.

Underwriter—To

Probable

holders

&

Western

•

loans and for construction pro¬
be determined by competitive

bank

To repay,

—r

Underwriter

construction.

new

Winters National Bank & Trust Co.
Dec. 3 it

Co.; Kidder, Peabody & Co. and White, Weld
& • Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Offering—Expected sometime in July.
:r

12, Everett J. Boothby, President, announced that
expects to raise about $8,000,000 through
the sale of first mortgage bonds some time in 1957. Pro¬

bidding.

- -

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬

company

gram.

was reported Bank plans to offer to its stock¬
132,812 additional shares of capital stock on a.
l-for-3 basis.
Price—$30 per share. Proceeds—To in¬
crease capital and surplus.
Office—McKeesport, Pa. ;-

holders

by competitive bidding. Probable bidders:

be determined

Pec.

ceeds—To

Proceeds

mortgage bonds due 1987.

V*£y.*■

Nov. 13 it

plans, to issue some
securities, probably about $20,000,090

senior

*"

'

Western Pennsylvania National Bank

announced company

was

bank loans and for

Inc.;

,

it

27

Dec.

rities

the

V

*

additional

the company iup to noon (EST)

for the

Salomon

Co. (jointly);'.
V

and Gold¬

Co. (jointly); Lehman Brothers
Sachs & Co. (jointly).
-.

man,

(19)

Wabash RR.

trust

to

+ West Penn Power Co.

Bids will be received by

ments.

and

program

Langley &

July, 1954.

9

construction

loans. Underwriter—To be determined by
competitive bidding. Probable bidders: Carl M. Loeb,:
Rhoades
& Co.; The First.. Boston Corp. and W. C:
bank

repay

Underwriters—A syndicate
of local and national investment houses whose identity
will be made public at a future date. William R. Staats
& Co. and Blyth & Co., Inc. underwrote rights offering

Jan.

about

probably in the ratio of one new share for
shares outstanding. yPrice—To be named by

16

company

capital and surplus.

increase

was reported company plans to issue and sell
$40,000,000 of first mortgage bonds in the Spring.:
Underwriter—To be determined by competitive bidding.'
Probable bidders: Halsey, Stuart & Co. Inc.; Equitably
Securities Corp. and Lee Higginson Corp.. (jointly);Blyth & Co. Inc.; Blair & Co. Incorporated; Coffin 8cBurr, Inc.; The First Boston Corp. and White, Weld &

Earle

27,

holders,

a

stockholders

common

.

Thursday, January 3, 1957

.

17 it

Dec.

S. Thomson, President, announced that
the company plans to issue during the first quarter of
1957 additional common stock for subscription by stock¬

proposal of the bank to offer to its
of record Jan. 15, 1957 the right
tc
subscribe for 105,000 additional shares of common
stock (par $5) on the basis of one new share for each
12 shares held. Price—To be named later. Proceeds—To
>957

Electric Co.

West Fenn

Dec.

Valley National Bank,

•

.

Western Massachusetts Companies

•

•

Continued from page

in

.

(36)

and

previously
Company.

with

McCormick

Volume

185

Number

"

5600

.

.

The Commercial and Financial

.

Chronicle

(37)

72n< I Conseoii li vc

-'•}

Nichols New Putnam

Quarterly, Payment
AxerHoughton TP
Directors

Axe

of

r

BOSTON,

Fund B have voted

payment

has

partner

cents

a

irom

first quarter

a

of

Putnam

as

A

record number of investors turned
shares in 1956 to bring the total? number

./

-.

mentCompanies;--V"■■C.
Some

400,000

net

|

";.V .V

••

77:7

shareholder

; i A ':

•

accounts

"

_'7

year.

Much

.'\ \_; •'} \;\7

:'

.

!

,:J.

'

"•

of the

gain in accounts,. according toMr/Burr,,is due
.to the steady growth in the. number of accumulation plans offered

INVESTMENT

,

by open-end investment companies (miitual funds).

FUND

Ukatimal

is

estimated

at

These invest-

shares

,.

?

-.At the year-end,
closed-end

FOLDER AND PROSPECTUS TO

The

of

the

Association

open-end

companies

closed

the

estimated

are

$1,164,000,000
with

year

net

"

000,000 to approximately $1,251,000,000.

Broodwoy, New York 5, N. Y.

Investor
all-time

purchases

of

,

mutual

new

fund

shares

over

.

.

,

.

v

at

Investors

Uno-ol WkiklAeaL lift*
f

of

^CKOVPTO

ot

U£trl TVIIOICudlC Iflgl

Appointment of Joseph C.
southwestern

ai>

for three

funds

corpoiated
come Food

-

wholesale
WllUICScliC

SUUlliWCSlCIi

ager

;

;

:

associated

Broad

.—

Street

J
a

'

Vogei'gjj^* 'both'rf
llldllman-

Investing

Corporation,

vh°^

a

,0

today

M

t

a

1

r

o

-

Level of Prices of
Canadian Stocks

in

more

Berkeley Street

Boston, Mass.'

mand and

c

of

Street

25

East

Broad

25th

Street,

Tulsa,
,

Street Investing is a 27-

Smil dJnvS£« ^e^mSlfth
National
Investors,
the
growth
-

stock

Hwlv

y'

fund,

hi

and

Whitehall

-

Maril

Fund,

exchange

$42.76

than

standing shares of common stock,
according to the fund's semi-an-

nual. report for the six months
ended Nov. ; 30. Such net assets

"Each

of

flect

:

or

merely

share.

Fund

funds,

less thap in-

no

act

and

answers

7

"Despite these uncertainties, or
shares

stantially

by mutual funds sub¬
$1,250,000,000

exceeded

in

1956, greater than in any pre¬
year in the industry's his¬
tory.
vious

an

investment company of
the "no-load"
type, specializing
in investments in energy indus"open-end

"Except

for

the

Presidential

inflationary

a"d.di,?trib"ted

monPV

the

progressive

credit," he
Suez crisis

quality and income possibilities. Mail

A

Bus ad for free book let-pros
pectus to

"Despite

Established 18$4

"

:T.

-

places

STREET/NEW
i|r,

<

,

,

h

m

,

'ii

,?

dollar over the
theless moved

Prospectus

upon

is

Atldzffis

of

on




Chicago

—

Atlanta

—

4%

neverto the

The main

years.

further

advance

heavy flow

funds

from

the

although a recent
contributing
factor, appears
to
have
been
some
capital flight
from
Suez

States,

Europe

occa3sioned

by

the

disturbance,
the fund of this

on

rise in the exchange rate was that.

Continued

on

page

39

HCURtTUkl^l

competent

THE COMMON
STOCK FUND

in adequate diver¬

OF,

one

reason

wider

a

•

funds

nections.

request

will,

'

Group Securities, Inc.
.Incorporated 1933

why, in 1957,
continue

should

usefulness

to

to

A mutual fund

and

for

investors, especially
whose

It is

foreign

sales

funds than in

volume

for

a

1956—a

new

Investing

and

growth

con-

common

selected

for their invest¬

ment

fl^obable that 1957

therefore,-establish

income

through

managements

have long-established

Lord, Abbett & Co.
—

this

investment

United

A

still

quality.

PROSPECTUS

■"from your

mm

New York

for

reason

emphasizes the reduced

funds

greater
NanBi.

above

-

high value

a

demand from

*
,

im*

U. S. dollar

has been the continued

fbvironment which

-

find

are

YORK S

Gill*-

of

the ex¬
change premium of the Canadian

and continuous investment super¬

those

'

growth

deficit,

accumulations'

Investment

CALVIN BULLOCK, LTD.

continued
trade

sources

prices.

factor of increasing sig-

situation

Common Stock Investment Fund
objectives of this Fund
possible long-term capital and
income growth for its shareholders.

the chief

were

of pressure on stock

Canada's

of.

"Resulting

njficance-—a delicate international

ing

Fund

Stocks selected 'for investment."

restriction

:

continues.

in interest rates and the

in-

wave

creafes inventory

capacity.
growing

policies have been directed toward

influence on equity prices in 1957
_hiah

combat

pressures, government

"The effect

wilUxert^'sSstantol

by Ralph E. Samuel & Co., New
York, was first made available to

virtual

to

highest level in 23

perhaps because of them, sales of

Energy

Incorporated,

or
on

at

effort

increases

investors, had to try to

logical

accordingly.

Fund shares outstanding increased
87% in the period to 19,301.
Energy

re¬

a long-term,
temporary influence

of mutual

new
:

di¬

they suggest
any basic revisions in investment
policies or portfolios? Managers

$1,410,513 at Jan. 1, 1956.
In the same period net
^sset value
per share increased 18.7%, includ¬
ing capital gain distribution in
per

changes" in

securities prices? Did

consumption have

$4.72

these

presage
a.

find

of

modeTt "propoT- i»^e-m^;.genwa* and some
although the labor shortages have developed

of the future: Did these moves

"It

»i

or

economy

muttial

isa mutual investment fund of diversified-

iiihi

$54,458,419,

an

risks involved

■

with

time of it
"The

easy

sification.

n

to

out¬

"In

vision and

mmm.

104.03%

1,210,000

on

the

dividuals

1956

no

rection required a new evaluation

,

mmm.

rate of

share

from the continued operation of

S?#S?bUc r °A- *?• ',955 atyears, respec- $119.98 per share Asset value per aned_^
sharc has increased

Vogel, a native of New
Ulm, Minnesota, has been in the

ONE WAl.E

a

than "compared

-

35.3%, lriclud1956 capital gain distribution,
since the initial offering. During
insurance business
for
18
years
the same period the Dow Jones
and owns the Joseph
C. Vogel Industrial averages increased
general insurance agency in New 7.7%, from 453.09 to 490.44.
'

Mr.

mmm

of

ferent industrial groups, was con¬
siderable.
77' 7J

from *

k.

Oklahoma.

''

Fund

highs and
lows, and especially between dif¬

;

boosted assets of Energy Fund In¬

Joseph C. Vogel
Corpo¬
ration,
said
Mr.
Vogel's
territory
will
be
Texas, Oklahoma, Arkansas and
at

■"

Scudder

in
Canadian dollars,
equal in United States dollars at

between

range

corporated to $3,042,296, up 115.6%

Louisiana, and he will be located

common

of

$49,740,387

funds,

1957

of

assets

recorded,

price

dynamic expansion in energy de¬

Sales

*

7 '

;

■

1

a

President
Broad

•

'

:

the

by

gene

Woodford A.

dealer.

The Parker Corporatio\t
200

Slices Cites Lowey

]Mr. Bullock said.

tions

,

Christmas gift giving of Energy
Fund shares plus the continuing

the funds.

each

from

investment

7 7

$1,250,000,000 seen in 1956,. ac-. .$44.02 a share on 1,250,000 shares,
cording to a statement by Hugh on May 31, 1956, the end of the
Bullock, President of Calvin Bui' previous fiscal year,

"et was
"change "of

AHe

^T»/r;„

the. University of Mow

Since Jan. 1956

been

as

announced

distributor for?
on

Nwfflm

+

115% Assets Gain

hall Fund, Inc.

available

^

White¬

d

n

—h

.

is

$53,time,

upward

Energy Fund Show

Investors

prmcpuX-

prospectus

at this

ago

states-in-the semi-annual report
that in the fall of 1956 all sectoi-s
surge - in common stock °f the .Canadian economy except
Secretary of the Minnesota Junior prices '■< came
to several" abrupt" agriculture and related industries
Chamber of Commerce, ;he is a
halts followed by rallies and cor- cached new peaks and that indirector of the
State
Bond and'
■'- have
rections. For the year as a: whole, creases, in commodity prices

mutual

Corporation

^UlNCOME

fund

year

7,600 shareholders.

the

mutual;

for

established

be

in 1956,"

Ulm- A former Vice-President and

National

.buTnable «'"hou.
of

volume

the. all-time record

.

A

Canada Ltd., investment
company,
amounted
on
Nov. " 30,
1956 to

Expects

and officers had

irfoWishedJ???',.
uvual
wrth •

..»k

Company

It is probable that a still greater

will

;

an

Novem¬

(redemptions.)' Were lower,: estimated at $429,000,000, compared with $442,000,000 in 1955.
Commenting on the recession in
The : lock, Ltd., managers of mutual ratio of redemptions, to total assets in 1956 is estimated tb be t funds with assets exceeding
$400,-"Canadian stock prices from their
4.8%, the lowest ever recorded' by the Association.; In 1955, the / 000,000.
i
V -1 highs in early September,'". Hardratio was 5.7%', and it was 5.0%: in 1952, the previous lowest year.
:"Investment company ^directors-Stlres, President of the fund,
|:

*orpuw»»r

»8

Bullock

-

.

-Elective

Management

1949.

sales

high in

Repurchases of fund shares

—

fund

.

For Funds in 1957

r

1956, totaling approximately $1,348,000,000,, as
against the previous high of $1,207,000,000; in 1955.
;
:
:

c,ed

.....

New Sales Peak

assets

were

since
was

net assets were $49,549,615, with
1,129,551 shares outstanding among

Net

estimated at $8,950,000,000, a gain oi; $1,112,000,000 for; the, year.
Assets of the closed-end investment companies rose
nearly $52,-

RESEARCH CORPORATION

dio

Company, 60 Congress St.,
of the George Putnam
Boston.
'7..—

of

since

;

<

consecutive

He has been associated with The

,

total assets of the 135 open-end and the 25
members

$10,201,000,000. This is a gain? of nearly
the previous year-end total 'of $9,036,609,000.

NATIONAL SECURITIES &
■

company

.at

YOUR INVESTMENT DEALER OR

I'

ment

Fund

a similar opportunity through use of the New York Stock
Ex¬
change's Monthly Investment Plan.:
r
:
;
:
:

FREE INFORMATION

dividend

to

repre-

Nichols

manager

.

Bsiablithtd f.9?0

S.

Horace

avail themselves

can

109th

per

1957,

.the

465,941.

——-

.r

Putnam

company

cents

15,

organized.
declaration, date,
the
had
1,271,358. shares outstanding among 8,800 sharehold-

of

WRITE FOR

your

--

'

464,000.

Investors in closed-end

ftidj

-

.'""77

7

thereby building an investment with /small amounts of money.
During 1958 the number of new accumulation plans opened by
investors is expected to total 173,000.
In 1955, investors opened
114,900 new plans. The total number of accumulation plans now
force

30

'i^i.ers, while net assets totaled

ments
plans enable an investor to 'make regular monthly or
quarterly purchases of mutual funds shares from current income,

in

•

.

::

>• \

of

Jan.

1929, when it

On

v

ing -the.
'

nuarterly
ber
~

i

added

dividend

sents the fund's

\

t

were

cash

stock of record Jan. 2. "This

;

.

t

new

Directors of. the Loomis-Sayles
Mutual Fund on Dec. 28 declared'
a

-

the books of both closed-and open-end investment companies dur-

■t' ,r.

A MUTUAL

to investment company

to

I

i

.

-'"shared payable

B, Burr, executive director of the National Association of Invest-

t z c

•'

..

\

of shareholder'accounts 7
approximately 2,700,000, according to, a statement by Edward
<

to

>

a

Manage-

1953; Accumulation Hans in Force Total 464>O0©

It is the fund's 72nd con-,
secutive
quarterly 7 distribution
and is payable Jan, 28 to share¬
holders of record Jan. 7,7,; • <.v '. •

A

The

admitted

Total Shareholder Accounts Reach 2,700,000 in

to shareholders
of 10
share,; including- 7 -cents

income and 3 cents from net

120

been

.

profits:

■c

S.

—

Nichols

Houghton

-

109lli Consecutive

.

Management Partner -Quarterly DhvFor
Mass.
Horace
Loouiis-Sayles

"

"

;

37

mutual

stocks

,

ON

REQUEST

investment dealer

Distributors Group, Incorporated

record

63 Wall Street, New York 5, N. Y.

high in sales is

Los Angeles
-

tion."

logical expecta-

a
-

-

:•

.J

,Z

a

\

The

38

Cdfnmercial and Financial

(3.8)

The following statistical tabulations

I ndications of Current

latest
week

Business Activity
Latest

—Jan.

Equivalent..to—^
Steel Ingots and castings (net tons)—
—-—
Jan*

'

Week

AMERICAN PETROLEUM INSTITUTE:
Crude oil and condensate output—dally

gallons each).

42

(bbls.)

Gasoline output

'2,322,000

2,493,000

fuel -oil 'output (bbh>.)_——

Distillate

and

(hbls;).at_!—
Distillate fuel-oil (bbls.) atX-l-I——;>
Residual fuel

a-

*,

Pennsylvania

'• *f

43,145,000

45,745,000

161,741,000
28,778,000
117,95-1,000
39,500,000

y

698,389

663,706

BRADSTREET; INCT—•

Finished

$456,571,000

$377,118,000

148,848,000

310,067,000

.189,585,000

173,000,000

133,426,000

146,504,000

187,533,000

115,083,000

171,104,000

20,173,000

(St. Louis) at_
(delivered) at—
(East St. Louis) at

31,422,000

5(145,000

16,429,000

570,00

628,000

447,000

555,000

264

260

149

11,196,0.00

*12,227,000

12,075,000

174

). at_—

tin (New York)

at—;

'

Jan.

Average corporate*-'—

Jan-

V

AMERICAN

366

Utilities

5.622c

5.622c

5 622c

$63.04

$63.04

$63.04

$64.50

$64.33

35.675c

35.700c

42.900c

Aaa

33.625c

16.000c

43.600c

16.000c

v15.500c

15.500c

15.800c

15.300c

13.500c

13.500c

13.000c

25.000c

101.250c

Not Avail.

102.750c

87.75

1
1

89.80

88.11

94.98

95.32

96.69

98.09

98.73

108.88

96.23

96.69

106.92

90.34

91.34

94.56

95.01

105.34

96.69

95.47

1

3.52

3.48

3.33

1

4.05

4.01

3.96

1

3.82

3.78

3.74

97.00

97.47

96.38

V

97.62

3.87
3.99
4.39

4.13

1

Jan.

1

Jan.

r_—

INDEX-"—z'—Z——

Jan.

**v

**.*'•

,

1

—Dec. 22

—

INDEX— * J

DEALERS

SPECIALISTS

AND

Y.

N.

ON

"

EXCHANGE

sales

Number

of

SECURITIES

—

shares

Dollar value

.

ODDSTOCK

short

3.83

Oven

3.34
5.63

4.07

3 98

3.9C

v

-

3,27

441.6

207,805

249,212

202,463

281,309

260,253

286,600

96

95

89

In

219,204

280,141
340,551

416,158

373,310

110.16

110.13

•

-

»

Other

sales

8

1,438,457

1,303,670

$79,932,473

$68,215,531

1,490,392
$77,141,062

EXCHANGE
Total

AND

7,683
305,213

$51,788,355

$46,675,229

$44,633,922

$53,036,758

8

227,880

236,820

173,390

315,970

8

2~27~880

236,820

173,390

215,970

8

.Dec.
Y.

ON THE N.

Index

8

557,640

756,430

413,410

Stocks

Other

.'

597,720

12,618,720

8

13,216,440

666,510
11,230,140

11,896,650

603,170

506,600

8,916,480

13,262,940

9,519,650

Net

8

1,720,690

the floor—

-•

356,480

320,020

395,130

1,374,030

1,730,510

1,236,870
1,556,890

1,131,390

8

1,526,520

256,260

sales

405,380

8

424,230

8

46,300

58,600

49,400

329,150

278,980

260,500

375,^50

309,900

403,810

!

8

568,415

516,236

396,485

8

100,540

99,320

84,620

611,949

613,648

712;489

Dec.

44,786^93

pf

S.

DEPT.

8

end

of

-

8

used

middle

at

122

,

''

•

148

42,166,904

$a95.S83«000

53,537.641 V.

52,259,398

of
81.5

*

~

OF

82.4

85.5

*

;

.

,

,

MINES)—

!

28,643,000

EARNINGS

29,843; 00a

'17,068.000

109

111

iO!)

$963,199,291

CLASS

I

AMERICAN

$874,850,374

$907,746,836

699,353*236

657,880.452

72.61

75.20

$122,545,209

ROADS

$100,410,934

$103,034,o47

97,428,271

110,881,511

9,779,000

RRs.)—Month

revenues^

"

!?'

.

^

MANUFACTURERS
of

Tires

October:

(Number

2,479,916

1,986,945

477,940

529,150

&

"

.

*'

*

■

2,315,129

2,129,498

1,936.111

8

2,532,607

2,818,449

2,607,438

2,465,261

8,517,307

2,998,950

6,470,814

Bus Tires

-

.

.

115.7
87.6

103.1

9U7

25

78.4

79.3

79.2

69.7

Dec. 25

124.7

124.6

124 0

-

«

'

2,356,862

206,240

212 345

.-239,619

197.425

271,941

689,816

693,318

2,877.157

2,777,050

3,004,140

3,024,777

2,773.470

3.118-965

6,468,786

6,056,035

6,285,703

43,770,000

36.549,000

36,183)000

43,463.000

3P."<588 000

"35*J84'9:06O

28,603,000

Bus

1,295.21'J

3,179,927

712,126
Truck
(Number^ of)—'

1,152,968

216,510

•

1,194.076

3,167,971

—

27,422,000

22,732,009

42,367

*42,367

41,787

Inner":

_J

;

Rubber

1

(Camelback)—

(pounds) *

Production

(pounds).

Inventory

1,'315,056

;

;

Shipments

119.6

6.801,749
8,159,959
13,806,479

1,304,948
__!

Inventory
Tread

85 2

*103.0

,

90,000,000

1,273.120

Inventory

Tubes

6,647.096
14,468,133'

15,606,584

111.4

102.8

*

,

\

.

!
!„_!

Passenger," Motorcycle,

.

87.7,

-

5,758,068

7,525,761

=!__

(Number of)—

_i"

Production

384,700

25

Dec

79,000,000

73.50

-

Tractor-Implement Tires (Number-of)—
Shipments

"

88.5

.

of)—

_!

943,677

503,320

25

-103,000,000

.

670,789 156*
-

ASSOCIATION*

_!!__I_

|

628,841

116.2

121,713,784

.

712,968

2,713,335

116.1

*

(AS¬

Inventory

8

""Dec.

.-.

26,958,000

33,324.000

15,538,000

^

..

.operating

316,22 7

8

IIlDec.

and foods

30,055,000

29,935.000

-

-i

cent)-.-—

(per

544,221

8

Dec. 25

j-

~
than farm

$735,869,000

53,690,914

(barrels)

Shiptirents

__

__

--- --

Meats

'

*

COMMISSION—

month—barrelst

127,450

OF

_

_

^

44,503,331..

$741,999,000

30._

Production

~

All commodities other

Sept.

.

_

products
Processed foods

V
_

.

railway operating incorae. before charges
income after charges' (estimated)
___•

Truck

.

Farm

*127

consumers-

__*lv

mills

Shipments

Dec.

Total sales

commodities

*

-

at

(BUREAU

Production"—^.

*

Dec.

.

43,736

-

*122

157

omitted)

Employment

894,120

'.

Dec.
;

U.

106,120

129

!!_*__!

September;

Inventory
■

sales

.

,141.807

:

customers—month

Production

380,310

337,580

_Dec.

—

-j

customers

(barrels)
from

Shipments

23,500

8

Dec.

Commodity Group—

116,516

;

INC.—Month

.

sales

WHOLESALE PRICES, NEW SERIES
LABOR— (1947-49 =
100):

133,711

113,353

.

(tons

(1947-49=100)

of

Passenger

8

Dec.

sales

ultimate

COMMERCE

(at

RUBBER

.1,336,070

'

Dec.

purchases

114,524

233,750

.

Dec.

Total round-lot transactions-lor aceount of members—

All

.

Dec.

floor—

Net

1,569,820

323,200

•

♦

Dec.

Total sales

Other

1,'699,450

8

Dec.

purchases :

Short

1,334,200

8

*

;

Short sales

Total

1,640,480

Dec.
Dec.

sales

Other

102,172

136,379

•>

-

.

Total -operating /expensesW—V-i-.:—!!
Operating ratio :1_
;
Taxes

Dec.

T

off the

132,970

pounds)!..!—.

"

;

October:

of

Total

13,769,600

Dec.

1

transactions initiated

Total

178,300

1,781,504

107,730

98,840

pounds)—___—

ultimate

to

ultimate

SOCIATION OF

8
8

Dec.

purchases

Other

!

*2,810,832

"

OF" MEM¬

ACCOUNT

Short sales

Total

6,462,200

*154,040

Nov.;

2,598,188

!____

CEMENT

..Capacity

Dec.

on

of

INSTITUTE

Railway

Month

649,190

Dec.

Short sales

,

of

RAILROAD

Total sales

Total

month

,*

S.-A^-a

stocks at end of period

sales

lrom

Production

STOCK

—

Other transactions initiated

tons)

September* t'OOO's

of

Shipments

sates—

sales

(net

pounds>_l__!_.

2,000

of

ELECTRIC

PORTLAND

(SHARES):

purchases

Other

U.

2,000

November:

November

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

of

INTERSTATE

5,402

TRANSACTIONS

ROUND-LOT STOCK

TRANSACTIONS-FOR

6,640,500

*6,299.189

186,091

month

of

pound!;)

September

1,076.185

8

Dec.

sales

*6,453,229

6,554,091

1,081,587

13,149
961,682

Total sales

ROUND-LOT

912,896

2,400.000

Oct.r;

SALES--FEDERAL KESYSTEM—1947-49 Average=^-UHl—

SERVE

Revenue

1,157.947

6,721

:

SALES

end

(tons of 2,000

copper

Month

$62,678,227

1,051,366

Short sales
Other

974,831

43,627,000

*2,938.000

6,740,182

fabricators-—■

A.

>

ACOOUNT" OF^ MEMBERS

round-lot

1,050,087

47,880,000

2,600,000

:

:

:

TOTAL ROUND-LOT STOCK
FOR

8

2,676

44 560 0C0

tons)____—^

tons)__

in

of

Kilowp.tt-hour

8

L

dealers—.

to

2,000

EDISON

8

(net

Adjusted for seasonal variations
Without seasonal adjustment-,.!---__r!

107.15

8

i

Round-lot purchases by
Number of shares—

H',191

.

DEPARTMENT -STORE

J 495,467

109.62

Dec.

-

at

(tons

U. S.

ol

101

-Dec.

•

92.621

34,881

MINES)—Month

(net tons)-

INSTITUTE—For

Ref,ned

,

—Dec.

!

Dollar value
.

314,344

355,027

537

tons)iL!lI_!^___'____i__._J

stock

Refined.,(tons

406.7

•

Dec.

-

418,156

287.484

'

Deliveries

-

v

Dec.

OF

3.43

.Dec.

:

!

sales

tons)

tons;

(net

(net

Number of

sales—.-

Short

680,068

281,369

tons)

MINES)—Month of

production

Crude

3.31

433.3

Dec.

sales.

(net

*_

(net

coke

coke

Copper

'

441.0

f

OF

(net

coke

COPPER

3.23

-

3.91

Dec.

—

Round-lot sales by dealers—»
Number of shares—Total sales

Oven

Month

,

other

658,584

--

r

—

!

-

-L-.

_.^_-

(pounds)

f>

e

.

of

'Revised
Jan.

1,

figure.

1957,

as

Ilncludes 912,000 barrels of foreign crude runs,
+^aSt£ °5Jlnew annual capacity of 133,459,150 tons as
against Jan. -1, 1956~basiaVof-i28.363.00fr tons.- TNumberY)f orders not reported since- -introduction- of

-Monthly- Investmebt Plan.
exceeds

one-half

cent




a

I Prime

pound.

.

3.13

<

4.32

4.10

V-

4.04

V. • >
-Dec. 28

dealers (customers' sales)—
Nujnber of o-rders—Customers' total, sales
,.
Customers'

America

(BUREAU

(BUREAU

Beehive

Odd-lot purchases by
Customers'

America

64,560

anthracite

tons)

tons)

53,425

< *?

-

-

'

purchases)—t

2

—

(net

^Production

108.16

COMMISSION:

EXCHANGE

(customers'

dealers

by

107.44

y.

3.96
;

3.94

3.96

of

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF
LOT

-

1

Dec. 22 '

u»49 AVERAGE ='40» *—__:

Odd-lot

COKE

\

—I——

OIL, PAINT AND D^UG REPORTER PRICE

(net

38,058

45,866

MINES)—

Pennsylvania

Central

93,426

88.910

3,485

OF

\t

Pennsylvania-anthracite

.

3.34

activity—*-—_—
Dec. 22.,
Unfilled ordersvf tone) at end of periodi!---^!:—!~_xi._!_—Dec. 22
Percentage

~

87,616

100.848

70.185

t\

(tons)

93,493

110,433

373,193

period

of

Bituminous coal and lignite

*

.

5,398,505

,

November:

ol

2.88

r

Orders recei v ectUtan 3>__ !_
Production (tons)

Asia

South

.

of

101.97

'

MOODY'S COMMODITY

Europe

5,033,978.

110.34

1

—Jan.

———.

NATIONAL PAPERBttARD* ASSOCIATION:

(tons

<tons)__T_

of

and

COAL OUTPUT

106.92

100.16

94.12

i

95.92
99.52

97.78

"

3.89

Industrials .Group

grades

end

(BUREAU

109.250c

Jan.

Group!—-!—

all

.

North

To

5,825,111

,

of

,

ton?)

Tc

Not Avail.

98.750c

by

2,000. pounds)—

of. October £

To

•

3,427

5,666

VOv.-|

__.__r__T___

period

at

experts

(net

51,066

.

•

.

91,808

of

EXPORTS

S.

'To

4.46

<

end

6.532

-

6,695

v

.

transported

,

of

'

13.000c

25.000c

U.

V 13.500c

Jan.

Group

-•

.

tone)

output

(tons

at

15.300C

14.000c

13.500c

26
26
26

15.800c

14.000c

26

1

—

Public Utilities

8,636,000

4,172

pounds)

Month

44.600c

4.02

Railroad

251,655,000

21,682,000

;

ASSOCIATIONS, INC.

freight

smelter

1,655,COO

x

-268:875,000

19,725,000

.

Unfilled orders

-

I

*_

—

zinc

Stocks

43.050c

33.800c

—.Jan.

W-

Government Bonds——.

U. S.

Average corporate

259^13,000

_

cars.

October:£/
(in

a

'r

TRUCKING

general

34,000'

.

24,882,0^0"

12,339.000

export

delivered.;

cars

carriers

2,000

$53.00

-Jan.
—Jan.

—'

AVERAGES:

-12,276,000'

^

"

$59.09

$63.50

1

*.—

—

and

23,000

r

31.029.000

pAR INSTITUTE—

5.174c

—Jan.

.—

Group—

domestic

freight

.

174

254

214

89.37

Industrials Group

21,801,000

28,000 X

■31,281,000

-

AMERICAN ZINC INSTITUTE, INC.—Month
November :
' v
*
.

10,751,000

95.77

"jan

Public

201,919,000

24,120.000

-V

(tfarrels)

November:
new

Month of

v..

231

98.88

—~—

MOODY'S BOND YIELD DAILY

223,754,000

■

!

Aaa

Group

cf

for

Shipments

__

PRICES DAILY AVERAGES:
U. S. Government Bonds—f—
1_:

Railroad

< barrels

.

'

MOODY'S BOND

—:

imports

stocks

freight

Slab

—————pec.
;
Dec.
—Dec.
Dec.

247,189,000
223,046,OOG

23,737.000

(b^rrelsi_tl!!__'_!___i__^

RAILWAY

Intercity

-£ec- 26

■

Aluminum (primary

Straits

all

Month

New

COAL

(New York) at

Lead

products

Orders

10,439,000

pec. 26
Pec- 26
-Pec- 26

———

235.381,000

211,616,000.

(barrels)

,

Export ^refinery at
Lead

'

v

'

LK;c> 2o

'

imports

consumption
(barrels)

'v>

98,619,000

of
—-—J?ec- 25

Electrolytic" copper—
Domestic refinery at

Oil

AMERICAN

QUOTATIONS):

(E. & M. J.

METAL PRICES

\ ?'C

■

103.764,000

113,253,000

7,216,821;

v

gcl-

(barrels)_

(tarTels)_^!__:^^L^ji!

*

"Indicated
'

$276,764,000

9,140,000

iv

-.7,058,028

r

$282,274,000

247,3991

10

*11,048,513

.

7,930,957

A-"

,

(barrels of 42

ofrtpitt

outprft

''

*10,690,000

„

oil

gasoline
output

Increase

Dec. 27

(per lb.)_—

steel

Crude

DUN &

—

Pig iron (per gross ton)
-_i
Scrap steel (per gross ton)—:

.

-*■

'

'

.

_

'

crude

,' Natural

,

11,020,000

—

!(*'

Domestic

Benzol

636,745

;

Dec. 20

INDUSTRIAL)

AND

(COMMERCIAL

FAILURES

i

V

667,479

650,920

622,326

Dec. 22
Dec. 22

■

/

» #*..

■V10,566,000

-_

*

'

716,652

645,437

«

' •

'

Ago

tons )—

lons 'e^ch)

.

IRON AGE COMPOSITE PRICES:

Zinc

36,305,000
158,871,000

'

'

•_

(net.

**•

-

-

Year

Month

INSTITUTE:

products

Total domestic production

V

«

Electric

JZinc

32,418,000

139,610,000

.

ELECTRIC INSTITUTE:
output (in 000 kwh.)-_!___

EDISON

174,544,000 %

steel

October

Previous

PETROLEUM^INSTITUTE—Month
of September:-;-,,w-

'•

177,037,000

of

of

i,

^

-

.RESERVE

STORE SALES INDEX-^-FEDERAL
SYSTEM—194?-40 AVERAGE — 100

DEPARTMENT

R

9,005,000

<

Dec. 22

(tons)!

anthracite

12,345.000

8,458,000

42,577,000

—

.

2,796,000

12,761,000

8,360,008

32,029,000
134,980,000

Dec. 22
cars)—-Dec. 22

'

2,655,900 *

13,602.000
«

.

130,543,000

.

j,

8,856,000

of that date:

are as

AMERICAN

.>vv.

.

27
Private- construction __—:—.-J—7.
—-—-——Dec. 27
Public construction *.
:
—-———Dec. 27
State and municipal!-----—T—
_*——
'•——Dec. 27
Federal
——-—«s————
——Dec. 27
(U. S. BUREAU OF MINES)*
coal and lignite (tons)—1—

27,063,000
'

^

Bituminous

Month

Refined

^

Civil* ENGINEERING CONSTRUCTION — ENGINEERING
NEWS-RECORD: V.
* '-Zr-f 'V ■/>>•■ ;V'v>
Total U. S, construction—
——.—
Dec.

COAL OUTPUT

'=7,838,00(1

-

26,816,000 >

2,418,000

2,594,000

Dec. 21

ASSOCIATION OF AMERICAN RAILROADS: T• V *"
Revenue freight loaded (number-of cars)
Revenue-freight received-fromrc©imeeti«ms- (no; of

6,991,600

8,111,000 '

27,066,000

■

oil, (bbls.) at:—:—____—

7,195,350

8,000,000

;

13,945,000

lines—•. _
Dec. 21
—Dec. 21
Dec. 21

Kerosene

.

AND^STELL

ingots ar.d. steel -lor' castings produced
(net
tons)—Month tfii No*rvoer_JJ*._

2,463,000

"

-

terminals, in transit, in pipe
unfinished gasoline (bbls.) at".

7,355,150

7,376,100
(18,061,000

28,018,000

'——■—-—-—

Stocks at refineries, built

IRON,

Shipments

——Dec. 21
21
—Dec. 21

—

Residual fuel oil output (bbls.)—-—Finished

AMERICAN

v

Dec. 21

.
—

—

of quotations,

cases

Month

97.6.

,

Steel

6

in

or,

either for the

are

Latest

.

(bbls.)-i,—!—•-—•'——

Kerosene outputr

that date,

on

Ago

V £2,509,000

■

(bbls. of v"

average

(bbls,)-.*-

—-——

Ago
101.3

Thursday, January 3, 1957

production and other figures for th4

cover

Year

•94.3

•—------———?cc

—

to stills—dafly average

Crude runs

Month

£98.0

6

steel operations

Indicated

...

month available. '■ Dates shown in first column

month ended

Previous

Week

>

STEEL INSTITUTE:.
(percent of capacity)

AND

IRON

AMERICAN

welt or
or

Chronicle

Western

Zinc-sold'on

delivered

Oasis

at

centers

where

freight

from

East -St.; Louis

ZINC OUTPUT
v
*

Month *>f

(BUREAU OF

September"

•*

MINES)—^
-

•

<

T

.

.Mine-production pf~ recoverable, zinc, in" the'
United Sta.tes

(in,

short.

185/-Number 5600

Volume

...

The Commercial and Financial Chronicle

!

(39)that the dicsels

:r

can accommodate.
The modernization of the Buffalo

*

Continued

from

"-V

37

vaqe

a

1.

^'yards^ in that
v:for

.

By GERALD D. JMcKEEVER ^

Events-of the past
have

so

served

The

two months
clothe

to

New

latter--.allies

particularly

"electronic '

new

yard

at

Ellt-

hart,.Ind., and the other is Tor

to the vastly
variable holdings of ^consolidation
Park Avenue rfel.estate.arid the

of /five

Stires Cites Lower
-

the

*

■»

r.

iVVIV

AO

vviivvi u^va.

sober

more

Nov.,1

wage

'

1I,lU

particularly tne
that

increases

off but

bear

r

v^"""

'

Papfer Com. Ltd.t British
American Assurance Co.; Canadian
Breweries Ltd.; De Beers Consoli¬

C'

-

Cdll<)m*ll1 St0filf3

dated Mines

caused

-further

aggravation of the decline
vember earnings
resultant
sharp

This

$5.50

figure

downward

statement

the

uo
Co. Ltd.; ai# Lawrence
j^a.; St. Lawrence Corp. Ltd.;
uorp. l^ia.;

Triad

scattered

the

road

•

been

Dec.

the

$1

277

,

,

"as

of
,

,

Park

.

offset

New

the

$7.34

the

This

should
in

oiKiiitir

Not

having

the

of

the

stock,
with

the road's board

idend for 1956.

this is

action

in

of

time.

way.

other

cr\Y\-\c*

pos-

In lieu of the reg¬

road's

entire

holding

properties.

The

men¬

other

latter

for

.York

of

rate

share

one

each

21

shares

Central,
of

share

or

Freight

U.

S.

Central share.

-

and

of„t:.e
of

about

of

about

25

adverse

which

seemed

must have

else.

to

may

offer

given
T

while

also

in

little

a

show

„

the

final

quarter,

investigation would

that

current

finances

of

still

lor

of

rent

of

stock

trie

would

only

that

con¬

now

about

In

New

York

period,

City.

-

<

difficulties

iri"

-

these

conditions

increases

the

million in 12 months, this Was due

from

in

The

an $8 million increase
inventories - of materials and

supplies—probably

a
"

move

ing

the current

in

prices.

Net

working

strqng

which

to

benefits

jof

rebuild

the

of

about

cost.

the

cover

total

revenues.

was

recently

'However,
from

wage

further help <3ould

the

increase

5%

"breaking''

the

The

additions

116,000 at the year-end H. J. Si-

$125 000

rnonson, Jr., President of Nation-

000

shares

Ltd.

During

A.

of

V.

Roe

Canada

stock.

common

the

*

months

six

period

Bt%^%%Cds&d«eU^

preted

special

cannot

be

York

with

Common Stock Dividend No. 164

Ovitral,

STOCK

quarterly dividend of 30

a

rents

share payable

per

Common Stork of the

business

011

to

for

GREENSBORO,
is

while
rail

a

now

N.

.

•-

■

.

CORPORATION
November 14,1956
'

CASH

A

with

NO.

176

1956,

ON COMMON STOCK

The

Board

Consumers

of

Power

authorized

has

Directors

Company

tlie
of

60

would

seem

York

Central

management of jettisoning
'non-rail holding as it can,

for

not

can

one reason or

ing
able.

these
*

be

disposed of
another, of mak¬

holdings
-

''

mote
/

profit¬




1799-

;

J

of the Bank,

15, 1957

TH E

1 he

C,
Manhattan
_

*

»

"

BANK

to

in
in

.

t ra

share on

the

Common
ruary

2(1, 1957

of

ers

share own¬
January 111,

to

record

of

November 29,1956.

ness

EXTRA CASH

the

authorized

quarterly

a

Preferred

lows.

payable

share

CLASS

$4.50

An

DIVIDEND

die

share

of

declared

was

payable
stock'

to

the close

business

us

.

In

fol¬

record

SHARE

$1.12«/2

STOCK

dividend
able

DIVIDEND

addition,
was

January

a

3% stock

declared pay

10,

1957,
at

to

the

close of business November

29, 1956.

$1.13

$4.16

29,

1956.

on

1, 1957

at

November

stockholders of record
PER

of

cents per

January 10, 1957,

payment

Stock

owners

twenty'five (25 ff)

of

dividend
April

dividend

extra

holders of record

ON

$4.52

$1.04

at

the

the

not

f>e closed

payment

JACKSON, MICHIGAN

of

ScnviH$Qut4t4te7KCe&tyiK

:

MORTIMER J. PALMER
Vtct Preside*M and Secretary

The above cash dividends
will

CONSUMERS POWER COMPANY

January 15, 1957.

with

stockholders

the close of busi'

cents

the outstanding
Htock. payable Feb¬

capital

nsfer books will

connection
COUIICEUUU

at

011

payable February

holders: of record

close of business

such

and,
large balance of such hold¬

ings that

CHARTERED

to harmonize with tie

policy of the New

for the

stock

of

fiftyfive

'

shure

DIVIDEND

has de¬

to

record

payment

dividend

a

of

1957.

NOTICE

of

was de'
payable December 20,

clared
DIVIDEND

The Board of Directors also

dividend of (30c per

DIVIDEND

dividend

[55 f) cents per share

March 1. 1957.

a

v

*•«««#»«« COWH»»TK>#

of

Company,

NOTICE

13,000,000 shares

\

Francisco, California

January 11, 1957.

stock

C.—Mandel

connected

The Chase Manhattan Bank

the

December

on

K. C. Christrnsen, Treasurer

share¬

not

Southeastern Building.

clared

business

TENNESSEE

to

basically conflicting in¬
terests, and which, as a result, had
hampered the progress of the sub¬
sidiary. -In addition, .this move

of

the close of

at

Treasurer-

has

resented

close

..

San

stockholders of record

to common

1956.

VINCENT T. MILES

of

situation that rep¬

1957,
the

28,

6%

Securities

DIVIDEND

year

per

"at

the

Company

February '1, 1957,

holders of rerOrd

on

December

on

cash dividend for

common

The Board of Directors lias de¬
clared

a

of 60
share upon the Company's
capital stock. This dividend
will be paid by check on January 15,
cents

COMMON

uiow

about

having been due to any
exigencies. It was stated

a

1956, declared

fourth-quarter of the

future and

as

disposing of

Board of Directors

The
19,
the

management/that

a

liberal

Kadis

NOTICES

DIVIDEND

per

United

-

DIVIDEND NOTICE

December 26, 1156

Joins United Sees.

S.

and

income

Pacific Gas and Electric Co.

QUARTERLY

(Special to The Financial Chbonici.e)

of

^JsZett

^th

shares

DIVIDEND

LONG ISLAND LIGHTING COMPANY

fares that has been ap-

New

iajCfuaiiy

base

at the time that the decision to
divest the road of this holding was
for the
constructive
purpose
of

fund

roaci's stock, down 30% from the
1956 high of 49V2, now affords an

DIVIDEND

inter¬

high of $61,472,994 — a monthly
average in excess of $5,000,000. He
attributed the high volume to "the

DIVIDEND NOTICES

Thus the distribution of the U.S.

stock

Mr. Simonson also reported that
purchases of the National Securities Series in 1956 set a record

^owth objectives»

Railw^

PREFERRED STOCK

Freight

1

ment funds reached $296,374,509
on Dec. 31 last as the number of
shareowners set a new record at

recognizes its difficulties, has al¬
ready made strong strides to meet
them, and also has a long-range
pian for further achievement. The

trains

long

n"

i

TT#

new

Depositary Receipts; and 10,-

in

plied for.
favored

foresighted "the greater part of system operations have been largely nullified
by obsolete yards which necesriassess
tate

tvt

_

were

30, 1956,

portfolio

1971; 4,000 Montecatini Ltd. AmeriCan

011

will just

additional

phase of ris¬

about

.

months

Ltd. convertible 4%% notes due

the

cent freight
applies to only about

Central's

passenger
-

current

were
actually down only
$1 million as of this date.

six

New

since

so

the freight rate increase

further.

dieselization

or

.

first

particu¬

are

to

...

largely to

the

cur¬

sufficiently strong to facili- " While some- $400 million .was cf fhis .quality, is nevertheless
tate the regular cash distribution,
poured into >tjrie roads property reasonably attractive in view of
Although total cash items of some between 1950; and 1955 without* other considerations.
$80 million as of last Sept. 30 rep- visible effect on the road's earnresented
a
decline of about $14
ing power, thife expenditure rep¬
a

a

At NeW High Peak

imething less than

non-operating
properties
along interesting stake in the
the lines mentioned previously, fhe indicated yield of
but also to make radical improve- af fhe present price,

resents

the

ended Nov.

to

$899 041,

.

During

to-

this connection it

a

were

receivable,

1.8%.

stated by the road's President that

inter¬

ment in the road's operating plant.

interest

the^bandonment

burdensome

75%

planmng board. .This refers not
only to efforts to trim ship as to
,

for

rate increase

tne

Cencral

in

ICC

wage

come
seem

passenger

1951-53

They are the more
recently granted 7%

these

in

National Series

or

York Central in themselves alone.

complications
a direct in¬

rood's

Sll^uoldci^' of

2%; corporate bonds
' 1
•
and notes, $912,719 or 1.8%; and .; Total assets of the National Secash in banks and dividends and-purities Series of mutual invest-

two

larly

of

way

its

Under

more

All

1998.

$999,300

strong trend of traffic and reven¬
ues crystallize in
high cost ratios.

1997

the

sub-

compan-

from

gether wit

collateral

of

in

$52 million average

SuchNbuilt

point
above the 1956 low and 1V2 points
above the low of the
past two
years, lie rather in the basic improvements which the road's man¬
agement is making or has on the

—

twice

the

lien

possibilities

stock,

reassur¬

payment would have been earned

junior

and

of

the

of

esting

this

that the regular 50-cent cash

aver

4s

Thus it

having been dictated by neces¬
sity,, although a moment s reflect

ance

1998

3V2s

formidable

terest

become evident

have

the

ShoYeVto

realty properties.

as

tiorv should

of

two

blocking the

for

been due to something
irregular dividend ac¬
have been interpreted

The

tion

reaction
to

6^

Soeemines^"3Ltd

major

deficit

the

is

issues, aggregating some $200 mil¬
lion, are non-callable and thus

U. S. Freight the, value of th s
quarterly
dividend
is; approxi¬
mately $1.19 per share.
The

the

solidated

each

As far as the value

market

Central

junior leasehold

of this dividend is
concerned, this
was not a bad deal at
all.. At the
current

of

3V2s

New

0.0476

for

York

$47,117,867, or 94.8% of net assets;,
Government of Canada securities,

ferry/lines from the
WeeJ^awken teririinal of the West

the

New

295,428 shares of U. S. Freight
the

IJnian

eharoe

passenger

a HSharP retdUCti0n- in Par^
to

2043 and to the leasehold liens

at

and

Se

of

tion
of

Ltd

nrpff»rr#>d

militantly attack-

its

its

ST£ ZmX

ter, directors ordered the distribu¬
the

with

senna?

property in question is,
for the most part, at least, subject

50-cent per share quarterly
payment for the final quar¬
of

is

annual

rQ

previously

same

n^rS>l0VMrent but a
v?V+er
$38 million,

son

to the first lien of New York &
Harlem 3V2s of 2000 to the second
lien of New York & Harlem 4s of

ular
cash

of

one

achievement

one

in the

accom-

the

5

practical

a

The

been

At

stantial

the other. One obstacle to

seen

the

that

the final div¬

on

seg-v

deficit of

on

tioned interest of the New Haven

evident

was

the

by the

six

on

recently.

which

the

on

ate benefit to stockholders in
way or

basic

dissatisfaction

Co

Haut-Kat'angaand

narticmatini*

.

11

significance,
nevertheless upsetting to the

price

ing

islfs Sft sa™^
^rtiCiPa^tff

months of last year.

but

Oil

Miniere du

Abitibi Power & Paper Co
Ltd
al Securities & Research Corporaproblems,' convertible "A" 4x/2% bonds due tion reported,
service 1966; $500,000 Loblaw Groceterias
At the close of 1955 total assets
deficit. This, by the ICC
formula, Ltd. convertible "D" 4%% bonds amounted to
$265,432,004 while
amounted to $37 million in 1955,
due 1976;
$300,000 Triad Oil Co/ shareowners numbered 100,013.

This

properties and

afford

thot

first

CTC

cleveland—has

pijshed

mountainous

taxes

approaching right of

solution

This held

for

City

Central

11-month result to S4.95 per share

against

t0_ the

York

Grand

«*«*£

for November 1955.

of

,

time the road is

p^djects

year

1C

compared

Averiye property.

similar

-

this

thing*,

!he. redevelopment ofthe

direct

per

showing was disclosed.
Reflecting a $2,771,000 decline in
revenues for the month,
earnings
November

other

among

are planned
to swell the
rood's non-operating
income which -would
provide a

No¬

poor

the

new
management
in 1955 is for the.

reduction of track mileage

and

and

18

competent

about

until

of

the
late

to

will,

P®£nli

vember

as

of

initiated

,
•
The fund's holdings of common.
!"five-year< stocks ori Nov. 30 were valued at-

consequent saving in
ybrMge^ the gap as toboth maintenance and taxes. Trie
the
the interest pf, first step — the conversion to
the latter un
th^e-properties. The ctc of the line between Buffalo
pute

President

s

whereas

had

ai-

estimate

placed at about
in

the

of

higher

share

plan"

v 3_

dispute^.av^

y."

was

press,

estimates
share

official

share

per

No-

in

earnings.

1956

for

AlsoC part

f01^^ step toward the

Hartford

and-finally, the

justment in the

Ltd.; O'okiep Copper

,

though cash balances held m New
York; sufferedslightly, the total

UUtll

Erie;;:

Pf _aifon?

a

V C

the .-slump

revenues-which1

to

oU

wage latio and sec- announcement^ agreement with installation
in. .November-.;, the
New .YorKl New-JEiaven & ments -with

j1!

ondly,

of

ctlA

profitable-utilization of Park
Avenue real estete is seen in the

more

heavily.bn the Central because

so

1969; Ca¬

'

-

and have included

due

^water

;value of the fund ; expressed in
yards1 at-Youngstown, lOhio into, U.cS, dollars
wasapproximately
attire as far as the near term out-'-Grand
CentraL|3roperties. ^ The one modern "push button" yard to $iy2 million higher on Nov; 30
on
look is concerned.
.Unfavorable ^conversion-of^e latter into air
wtu-ttVl,A WT
v *
VA
serve both the New York L/Clllldl
U1C
liCW
IUllv
IJLldll
1L
W UU1U
Central; than it would IlaVC been at luC
have DccU Bl the'.
factors have been, reflected.in a. important*-,
earntog; asset -by .the^and its subsidiary, the Pittsburgn May 31 rate of
exchange." •
' >rv
York Central-stock in

bonds

"A":4% bands due 1972; common
stocks of Argus Corp.
Ltd.; Bo-

;

LfiVGI 01 PflCGS Of

and

-such

more v

projects
are
planned for completion late thik
year or early in 1958.
One is for
a

or

completion. in i February

X vtwo-

New York Central
■

is ^scheduled

area

vertible 4%

nadian Petrofina Ltd. convertible

-yard and the consolidation mtq;
;-'dner- <©£ -vtHe^ seven ■classification'

i

not

be

paid on the shares
the stock

issued pursuant to
dividend. *

61

Broadway

John G. Gkeekbuugh
Treasurer.

New York 6, N.

Y.

v

The Commercial and Financial Chronicle

'(40)

40

the

to

BUSINESS BUZZ

moral

a

Washington.
-'

•

than

what

it

r

•

pay,

Behind-the-Scene Interpretation*

Or

no

in

the

ascertain

that

established

not

Lease-Purchase

And You

Capital

has

pay

4%, because that is
Congress it would
though such a limit

even
.

to

told

r.

-

boost

to

feels it

It

obligation

more

was

from the Nation's

awful decision

the interest rate.

c

1957

.'. Thursday, January 3,

.

GSA

act.

may

v

sleight-of-hand financing,

even

when sanctionted

by the soleirw
nity of law, does not go across.

SURE-FIRE

This

in

money.
is the- direct con¬

turn

was

•fiscal
)f

matter

the

legardemain, for example,
billions
worth
of

buying

the

housing
it

dte,

for

arranges

theoretical

which

^
•

personnel,

.military

Taft
Agri¬
whole fistful of "in¬

is

ward

Farmers

way:

the

ready

organizing after

their col¬

the

receive

the government, through
Mi*. Benson's aides, guarantees
the farmer's note and calls up a
cash.

of

solici¬

even

them¬

local
of
offering what they thought
would be a gilt-edged security
to dispense

ing

unique gimmick

Thus this

sults in
both

Secretary

the

fense and

second

a

the

or

Administration

hower

of

barrassment

the

the

for

appropriating

for

therefore

dime

all

admitting

one

a

is

time

is

about

Can't Get Money

•

10

me

rave

money

with

of

are,

Wall

Street

of

the

With

to

at

money

double

put

4%

.

on

a

wholesale

construction

up

scale

Under

the

taking

for

pasture,

establishing
or
under¬
works,

conservation

oil

got $20,003,000' in
only $8,710, in 1956.

and

it

As

figured

would

do

cffice

help

For banks could get a

business

in

a

farm

on

teed

piece

buy the mortgage with Treasury

hold

mis

funds

five years if they chose.

twice
the

the

Treasury

is

So

will

Secretary

of

Defense

and

FNMA

so

raised

for

pay

par

it

the

military

price

it

housing

and adjusted other

only

cosis

one

paper

no

pattern

through

the

Treasury.




entrapped

ernment
as

is

the

on

ing and financing
fice

dium

building,

the

for

use

a

nearly

out

ground

way

local

to

the

years

deliver

title

and

Services

wood tick

a

stove, or

that

has

When

the

a

on

of

an

does

its

a

hot

April it

was

not

present

interest

it

may

be

an

the

was

Services

dressed

up

.

to approve

a

trus¬

arrangement instead

of the
original
"ownership"
figment
for financing Federal buildings
on the instalment'plan.
This is
designed to remove some of the
inhibitions of law against na¬

last:

asking for bids on
post office and

all

V

.

the Treasury

building in Illinois, of¬
were brimming
with de¬
optimism that this new

scheme

factor.

tional

hand

and

to

in

real

be that GSA will come

of

as

at

The

the

speculative builders operat¬
•,

Barbara

1957

(Hot Springs, Va.)

ciation

Annual

Convention

at

the Homestead.
Dec.

1-6, 1957

(Hollywood Beach,

Fla.)
Investment Bankers Association
Annual

Convention

wood Beach Hotel.
•"/

"

Oct.

■

29-Nov.

at

Holly¬

-

'

.

■

„

>

National Security Traders Asso¬
ciation
Annual
Convention at
the Broadmoor.

With R. D. Standish
(Special to The Financial Chronicle*

BOULDER, Colo. — Oscar
now with R. D. Standish
Investments, 1227 Walnut Street,

Koepke is

TRADING MARKETS

Campbell Co. Com.

United States Envelope

Morgan Engineering
National Co.

Carl Marks
FOREIGN

SECURITIES

SO BROAD STREET
TEL:

HANOVER 2-0050

•

&

Co. Inc.

SPECIALISTS

NEW YORK 4,

N. Y.

TELETYPE NY 1 971

Riverside Cement

Sightmaster Corp.

LERNER & CO.
Investment

10 Post Office

kT~

*

' '

\

■

.

3, -1958 " (Colorado
'

Springs, Colo.)

Fashion Park

with

ing in lower-priced housing.

(Santa Barbara,

Indian Head Mills

gov¬

present

Green¬

Botany Mills

thor¬

the

1957

Meeting at Santa

A. S.

!

land-

But for

the

at

these

sleight-offinancing arrangements.
as

It may

ready to go places.

investments

bank

estate,

meeting

National Security Traders Asso¬

rate

important

(White Sulphur

Hotel.

Nov. 3-6,

acknowledge

Trying to work around tech¬
obstacles, GSA persuaded

Federal

clared

Hilton

Biltmore.

administrative¬

top

loans.

of doing business

case

Fall

future decade

nical

combination

ficials

annual

Statler

Cal.)

cast

4% is the sole cause, but ad-

raits

lessor

announced

the

at

Investment Bankers Association

government of¬

some

ly-determined

tee

General

Investment

of

Association

Sept. 25-27,

been

trying to work out of the

GSA
that

estate"

to

(Dallas, Tex.)

Investment Bankers Association

100 ap¬

extravagances of the present.

it

S. Government.

Administration

a

real

Association

Springs, Va.)

building in Illinois.

iron

25-year period. At

25

of

end

contracts

U.

a

Group

Bankers

-■

over

(Chicago, 111.)

Bankers

May 8-11, 1957

need
longer than

in

Texas

original post office

who is

agreed rate of interest, not over

(including

Associ¬

Conference.

Spring

$700,000,000

ficial will in

25-year period

building' with

off the

pay

Canada)

Traders'

April 21-23, 1957

-

to

the

at

11th National Instalment Credit

brier

.like

me¬

which

American

approval process

squirming around trying to fig¬
ure out
what is wrong, looking

payments precisely arranged

on

the

told

General

has title to and

allegedly

Chicago

party

(Toronto,

Bond

meeting

and Federal

construct¬

private

111.)

of

anniversary dinner
the King Edward Hotel.

at

budget.

the f[rst and

Federal of¬

a

The

building.

1957

Mar. 18-20, 1957

the

is all. Only one (1) project has
actually gone into construction,

person

or

Club

25th

was

interest
rates, the country banks might
rising

oughly

bid

to

in

8,

ation

timated

cumbersome proc¬

a

private agency

asked

show

would

and

paper

Southern

Hotel.

per¬

centage point to get the financ¬

ing

.

of

have found themselves

loans to
tees

the

guarantor of through

FHA.

a

the lush
present, and only

government-guaran¬

a

the

(Chicago,

winter

Toronto

as

3'^r re¬

turn

'Mortgage Assn., the government
corporation which is allowed to
the

Through
ess
was

March

proved structures to cost an es¬

that eventually the

government

the

Department yelped for
to the
Federal National

1955

it

conceived,

was

out

Defense

which

facili¬

water

farmers

to

for
with

circumstances,

up-to-20-year

afforestation,

permanent

money

fear they would be stuck
the permanent financing..

leans

ties,

guarantee.
Banks
and
companies were re¬

.insurance

fusing

the

On

insured

40-year
under the

up

even

under
$35,400,000

1956.

has

for the method of payment.

the

loans made the
this gimmick,
was
made in

mortgage
year

only

shortage of money,
just couldn't find any

suckers

•

it didn't happen in
Against $37,587,000 of 40-

year

the

defense

irresisti¬

up an

However,

first

All

except

history,

all

Congresses,

Approve $700 Million

for financing post offices
buildings.

taxes)

builds

momentum.

1956.

in¬

as

new

at

Hotel.

finance

again, the government
designs the building, selects the
site, and otherwise procures the
Federal
building as it did

4%

ble

year's

"leases" to the government's ex¬

of gov¬

course
a

first

Here,

that.'starts slowly and through

terest.

put

events,

4%

the lease-purchase pro¬

throughout

a

of paying for

that

and other Federal

owns,

ordinary

Future

job

Administra¬

Eisenhower

was

the years

course,'

aristocrats

collect

or

sleightof-hand financing gimmick like

bursting with
money, and that is the most Con¬
gress thought such undeserving
should

five

hence.

ernment

pockets

persons

any

worry

the

Fecteral

most

a

military housing and in¬
sured farm loans, would be left

-

trenzied

was

with

main manifestation

third

The

clusive

eternity,* Con-,
however, put a 4% limit
the interest. All people who

bloated

at

to

as

no

Loans Down

gress,
on

and

will happen

what

years

In the

into

now

time

neurotic

so

All this was expected to work
nmoothly and solve this problem

from

long

a

them.

Lease-Purchase Stalls

the laps of

on

Administration

Federal

in

the budget as an expenditure.

little

nice

future Administration, but five

years

em¬

it

incidentally,

potentially

a

financing problem

Eisen¬

the

bank wants to get

This,

cash.

leaves

Congress the

of saving

necessity

five years the

after

time

loan any

provement

De¬

government

FHA,

the

igency,
purpose

of

conser¬

vation-afforestation-pasture im¬

guarantee of the loan

a

by

facility-soil

water

year

re¬

1956

Traders

annual

one year,

any

benefits of the

gram

the up-to-20-

or

28,

Bond

re¬

pal¬
of the cost of building

try 4%

the

work.

any

naturally

priating in

banks could
collect handsomely without do¬

take the hank out of the 40-year

mortgage loan

as a

instead

service,

which

upon

cannot

to

this money

community

tion

loan

of

pleasing prospect to the spend¬
ers,
for
they
could
provide
handsome buildings by appro¬

selves forced to appeal to banks

tously contracts at losing time to

a

Department

Instead

Oy FHA. The dummy corpora¬
tion is necessary because FHA
the Secretary of Defense.

This

Agri¬

culture officials now find

of

government

(Baltimore, Md.)

Dinner

Sheraton

bank and asks it to dole out the:;

The

a

bit

a

the

government's

to

difficulty
recent merger!"

having

they're

Home

selects

money

fund. The lean to the
corporation is insured

Jan.

understand

"I

this

work

loans

When

loan.

Winter

for mort¬

powers

Association

Bankers

Hotel.

other loans.

and

(Chicago, 111.)

Baltimore Security Traders As¬
sociation
22nd
Annual
Mid-

Ezra

through some local bank. Farm¬
ers
Home even collects
the

insurance company or a

insure

Pa.>

,

1957

Jan. 18, 1957

the

in

lateral, and acts as a lender in
every respect except for doling
out the money. This little chore
is
left
to
private
savings,

on

legally

(Philadelphia,

that

gave

clients for loans, takes

that

pension
dummy

1957

9th National Credit Conference.

known

Ad mini st rat ion

to

an

from

Congress

Agriculture's

the loan to buy the
dousing. The loan comes usually
ferest

FHA

the Secretary of

These

stalments
.

10,

American

enterpriser,

gages

and^ays the annual in-'
of principal and in-

money,

Field

Philadelphia Securities Associa¬
tion annual meeting at the Bar¬

,

culture, a
sured" lending

regular

takes

Investment

clay Hotel.

private

and

paid

allowances

Jan.

papers

Benson,

<oan.

quarters

In

Jan. 14-16,

widely

so

man

builds the housing, on a 40-year

Defense withholds the

EVENTS

daily newspaper headlines as a

the

money

COMING

PRESIDENT

Home

1955

In

entrepreneur

borrows

M.T. TWEE01E

the.

to

Loans Wane

Delaware corporation to become
dhe

Defense

from

Farmers

dummy

a

PRESIDENT

FNMA.

to

designed

selected

and

these

push

to

around

of Defense

has

Defense

P.J TWITS

.

subordinates, of
course) does is to arrange for
procurement of such housing in
<rhe
same
way
it always has
been done except for the raising
of
money.
Instead
of having
Congress appropriate the money
and the payment therefor show¬
ing up in the budget, a new
gimmick has been adopted.
When

not coincide with
own views.]

has

brackets

(through

•

it

failed. It provides
considerable
government
em¬
ployment
in
substantial
pay
jective

dousing to quarter military per¬
sonnel and their families.
What the Secretary

the "Chronicle's"

sleight-of-hand devices still go
on
even
though the fiscal ob¬

that..

of

and may or may

-

as

the drain;

ho weve r,

Meanwhile,

allegedly Repub¬
Administration.
is

remains

situation

is. just goiie down

of the present
There

pretation from the nation's Capital

guar¬

the

and

the

as

Democratic Administrations and

lican

[This column is intended to re¬
flect the "behind the scene" inter-

Investment Co-

budget expenditure has, so long

of that booming econwhich for so many years
the consuming* objective of

sequence
; omy

double

the

of

source

true

well as

as

money

whole aspiration
of
using
this
sleight-of-hand
finance
to
escape
showing
a

loanable

of

shortage

the

anty,

directly from the

these stem

of

the

of

source

Federal finance is running
?nto some real troubles.
Most

the'

becomes

Treasury

WASHINGTON, D. C.—Fren;ied

Securities

Square, Boston 9, Mass.

Telephone
HUbbard 2-1990

Teletype
BS 69