Full text of Commercial and Financial Chronicle : January 5, 1956, Vol. 183, No. 5496

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ESTABLISHED 1839

J/\N 9

1955

HSlHtSS
uum

Vofume

183

Number 5496

editorial

■:^ll,v,::T.v

By J. BRUCE MeWILLIAMS

:

and

.

*

f to a close here in New York City. A number of
] jthese constituent groups concern themselves with
^scientific questions or With other topics With

importations and its future trend* Points out sale of
imported automobiles is assuming: substantial propor¬
tions, and the rate of growth is gathering momentum.

:

j
\

Estimates twice

not claim any degree of competence
unwarrantably hold any pronounced opinions.
There are among them, however, a number of

as

as

''

the - American Economic

1'
on a

.£.■

road

students of things economic and
/; financial. In one degree or another the same may,
I perhaps, be also said of such groups as the Indus¬
trial Relations Research Association, the Ameri¬
can
Marketing Association, the American Farm

.

ahead.

become

-Frequent
* particular

this

destined to

Society.
to

that the

public is entitled to
expect from such leading intellectuals in the
course of such programs as these careful observa¬
tions and' analysis of what can be expected of
what has been going on in this country for years
past—what is to be expected not merely this year
or even next but during the years or even decades
that stretch out before us. Basic political and
economic philosophies have undergone radical
changes since Keynes and others who before him
and following him (and imitating him) undertook
to

us

car

millennium of eternal

a

two-seater

world

be

automobile
crash was
It

<

have

accidents

as.

news.

was,

When you invite someone who is not a professional
economist to speak on an occasion of this sort, there is

always the danger that he will try to talk like a profes¬

i

it should be added that the

that crashed

was

capable of going

than

American
For

this
Le

that

car.

those

■

•

who

in

O.'-

almost

:

have not guessed,

J. Bruce McWilliams

,

accident happened" at

fantastic

tion

Mans, France, during the early
over

public roads forming

miles.

The

car

driver

was

Pierre Levegh

was

a

later', the1 300 S&Rf is
rifdbifes' in

prosperity.

rfta'chine but

All this has

brought forth governmental pro¬
grams, public attitudes, business practices, and
habits of life which often defy, when they do not
ignore, a long list of time honored axioms of

the

Mercedes Benz 300 SLR and the

As

will

we

from

on

it

and

It

Wat

failure

not

not in fact

was

judgment but

someone

even

see

the

of

an

this

error

points for

Continued

SECURITIES NOW IN REGISTRATION

,<*.

:

;

■

in

and potential

work

Central

of professional

banking

is

banking for the past 35 years. My
long apprenticeship in the field is
excuse
for the title which has
been

State and

are

afforded

undertakings in

a

on

page

Continued
*An

an

22

on

page

30

by Mr. Sprotfi' before a joint lunchebit Of tho
Economic Association Ond the American Finance Associa¬

address

tion, New York

City, Dec. 29, 1955.

Underwriters, dealers and investors in cor¬
now registered with the SEC

—

&roul

Central ifdhker."

Maybe that sounds as if I were going to give you some

complete picture of issues

onr

"Securities in Registration" Section,

State, Municipal

starting on page 40.

-

and

BENDIX AVIATION

Municipal

One

Securities

of

STATE

MUNICIPAL

and

Public

;.yv '
NEW

BONDS

HAnover 2-3700

Housing Agency

COPIES OF OUR

the Great

Companies in the United States
telephone:

a

rocking chair stories of my experience, but that is not

U. S. Government,
,

Xllad

given to my talk, "Reflections of

else's, which is

There could be many different starting

porate securities

DEALERS

the

often the way of accidents.

30

page

the

largely practical economics, a sort of
laggard son of theoretical economics,
and I have been practicing central

American

Continued

me,

the

in human judgment that led to

an error

driver's

of France.

of the* most advanced auto-

one

the world

frightful catastrophe.
in

which is

circuit of about eight

a

for

economists.

hours of the famous 24-hour automobile ;race
run

thin ice of
however, be¬
cause although I am not a profes¬
sional economist, I am a practitioner
of an art which must draw inspira¬
is,

theoretical economics,

:

-

I may have to skate pretty close to
what

any

V

you!

know I could not fool
;

although its engine is substantially
smaller

economist, and thus make a fobl of himself while
failing to fool his audience.
I am
not a professional economist. I hate
to make a fool of myself.
And I
sional

.

180 miles per hour—-it was travelling
at 140 when the crash occurred—

drea^i a Way out of the post-1929 depression

-and into

'• -t

•

fact, the worst automobile acci->
history of the motorcar.
The car was of German manufacture,
the driver was a French national
hero, 89 people were killed, compris¬
ing several nationalities. For good

••

seems

i
a

in

measure

It

*

.

dent in the

Econometric

the

sold

were

as

.

will be sold in the
the previous year;

Saturday afternoon last June,

,

and

cars

number of foreign car makes introduced in U. S.

a

Late

tion which include in their membership many of

Association

Leading banking official, .describing organization; and
workings of our central banking .system, declares it S;
requires/ practitioners steering n middle- course between - .
private and public centers without conflict of private and <
political interests; Cites aim of combining stable dollar. j
with growing, expanding, high level, peace-time economy.
•:
Noting broad significance of open market technique and: ;
selective- credit controls, concludes a r fresh thorough
study of our hanking and credit machinery and money <
and capital markets is called for.

automobile hurtling along a road in France crashed as
it attempted to avoid another car partially blocking the

I; the. leading;

■Economics

foreign

many

United States in 1955
Lists

iAssociation and the American Finance Associa¬
;

|

President, Federal Reserve Bank-of New York

.

can

| organizations such

a

car

.

;

Copy

By ALLAN SPROUL+

United States, Mr. McWilliams analyzes the' growth of

]whicn we

of

a

Central Banker

Pound Ridge, New York
In discussing the imported automobile market in the
<

The annual meetings of the Economic

\ Allied Social Science Associations have just come

I

Price 46 Cents

Y., Thursday, January 5,1956 " /

Tke lmported CarmAmenca^ffieflections

As We

:;
jj

New York 7, N.

BOOKLET

Bonds and Notes

;

MAT0MIC ENERGY
REVIEW"

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chemical
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ESTABLISHED

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BONDS & STOCKS

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upon

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DEPARTMENT

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Goodbody

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MEMBERS NEW YORK STOCK EXCHANGE

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Canadian Exchanges At Regular Rates

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Telephone: Enterprise 1820

2

The Commercial and Financial Chronicle

(58)

The

Security I Like Best

Banks, Brokers, Dealers only

For

This

Forum

A continuous forum in which, each

week, a different group of experts
advisory field from all sections of the country
participate and give their 1 reasons for favoring a particular security*

Diversified

(The articles contained in this forum

they

-•re

Services, Inc.

Here

Corporation

York 5

120 Broadway, New

Teletype NY 1-40

WOrth 4-2300
BOSTON

Private

CHICAGO

•

PHILADELPHIA
Wires

to

Orleans

we

are

Principal Cities

reserves

beneath

continental

shelf

gas

a

portunity. The

stock

so-called

with

should

earnings

of

frontiers

ered

oil and gas ex¬

ploration.
t

r

y

spent

Market.

mil¬

G.

Shelby Friedrichs

lion in rentals

As

tidelands,

the

of

Louisiana

coast

June

1,

are

oil and 35

are

have

wells

800

480 have been
cess

discoveries,

ratio'

of 60%.

my

opinion,

In

Since 1917

stands

out

is

Over-the-Counter

vitreous

a

is

used

seems

to

procelain

<Jf the'

opinion

"MfcpONNEII & fO.
Members

New

.....

York

120

Exchange

BROADWAY, NEW YORK 5
2-7815

REctor

TEL.

Trading Markets

Air Control Products,
Bank of

Inc.

Virginia

Alabama-Tennessee Natural
Gas

Company

Southeastern

& Co. Inc.,

is basically a contract¬
engineering firm, which
specializes in servicing these off¬
shore
operations.
This includes
platform construction, excavating
and dredging, pile driving, towing,
and
laying oil and natural gas
pipelines in the Gulf Coast area.
This work requires the use of new
and unique equipment, designed
especially for this purpose. McDermott's equipment, which is in¬
sured for approximately $20 mil¬
lion,
includes
offshore
derrick
barges,
dredges,
tugs,
aircraft,
boats,
pile-drivers and various
types of automotive equipment.
™

Jbfe

Lynchburg, Va.
33

the

in

enamel

Mobile, Aia.
Direct wires

of

a
good quality finish
items as
refrigerators

washing

Ferro is said to
supply about half
of the total demand for
this material.
Other
products
include

metals

5~jd'm. Liddell,

timrMitori

tho

mainr*

requirements

nil

investors
?,

for

Obviously

lands

diversification
wide.

is

exceptionally

Eastern Industries

Haskelite

Manufacturing

Call

business, which dates back to

the

earlv

to
to

iWene<mAComparai
1929

Tel. HAnover 2-4850

seek
seeK

were

quoted

is -.better

on toP dual-

-

requirement;

is

almost nine times the

was

in^eres^

Yamaichi
Established

Home

111

payable

this

on

Boston

as

gas

ratio"

of

serves

of

oil

other

450

wells,
completed as

were

16

with

of

and

wells,

come

62.4%.
over

discovered

As

wells
a

issue

came

to almost

«even

times

and

"success

and

have

been

Current

proven.

Firm

T*l«phon« Richmond 2-2530
Tatrype 8S-630

ended

for

the

rose

should

year

improve
due to retained

from
earn-

latest

to

an

in

stock, while

decade

of

average

earnings

$2.69 a
high cf
fell

a^
Peai
Pear

thct
results
that results

for 1955
195a might
for

be m the neighborhood cf $4 a
share> witb $2.83 reported for the
ifirst' nine months.

It should
noted that the above figures

be
are

per

year.)

several

interesting

-

invest-

ments in acreage have been made

subsequently.
acres
diues

The
carry

offsho?^

uiisnore.

One of these is

of

such

an

on

a

company

to

aggressive pro-

of the

original

issue annually at par.

an

l'762>500 ln 5>000

ability

uled to retire 6%
Each

debenture

about 50% paid at

*

convertible

up to redemption or maturity into

25

shares

of

was

stock

common

the rate of $40
mon

Common Stock

WISENER

a

share.

The

or

currently quoted Jan. 3

V

COMPANY

73 King St. West —Toronto, Canada

Established

various

1856

H. Hentz & Co.
Members
York

New

Stock

American

York

New

Commodity
Chicago
and

Exchange

Cotton

Exchange

Exchange,
Board

Orleans

New

Exchange

Stock

of

Cotton

other

Inc.
Trade

Exchange

exchanges

N. Y. Cotton Exchange

Bldg.

NEW YORK 4, N. Y.
Chicago

•

Detroit

Miami Beach

> -

•

Pittsburgh

Coral Gables

•

.

Hollywood, Fla.

Beverly Hills, CaL

Geneva, Switzerland

Amsterdam, Holland

times

dends, due to substantial undis-

At the end of
1944, this figure stood at $11.90,

tributed earnings.

adjusted, a chare, while ten years
wa? u5

,°
a E"araend of AP"J>
' bcok
value had reached $30.2o a share,
Prospects

for

the

future

9

/ Hi

£

seem

For one thing, Ferro has
rather large volume cf foreign
business which, in 1954, came to
about one-third of the total sales
and

to

somewhat larger perof net income, and
it
that
the
economic
re-

a

appears

of

covery

earlier

many

currently
losses.

foreign

in

nations

contrast

Finally, the

to

ag-

o

*>iessive

_

and bl§hly capable,
Continued

N. Q. B.
OVER-THE-COUNTER

/

INDUSTRIAL STOCK INDEX
14-Year

Performance

of

35 Induttrial Stocks
POLDER ON REQUEST

man-

agement is regarded as both

at

com-

AND

LIMITED

Book value of the stock has
been rising, despite stock divi-

profits

is

DELHI

Irom iy4U on-

is n°w progressing more rapidly
than it is in the United States,
For. another, some of the newer
divisions are said to be showing

barrels

^

—

; PETROLEUM, LTD.

a share in 1952, but
has since risen to $2.53 in 1953

a

to

CANADIAN

$1.33

The sinking fund provision, it
is worth mentioning, is strong,
Beginning in 10 years, it is sched-

5,500

(Approximately $5

and

ZERO COURT STREET, BOSTON 9, MASS.

years

common

As of March 31,
1955, net leaseamounted to 275,568 acres

per

CO.

a

sharo-of

good.

year

Trading Market

Maintained in

since

still be
growth situation.

million

than

more

holds

c).I

as

down

1944, net income-averaged
per

$1,000

coverage
-

Investment Bankers

Broadway.N. Y.I GOrtiandt 7-5680

may

centage

day.

KELLER BROTHERS

slowed

company

ings and, ultimately, to sinking
fund retirements and conversions
into common stock.

of

New Offices

regarded

not high. The pro-forma balance
sheet as of April 30, 1955, showed
net assets of over $4,000 for each
debenture
outstanding,
Moreover,'both asset and interest

result, re20,000,000 barrel of

production is running at the rate
our

nated debentures is adequate, if

a

distillate

gas

i

i

oil

has

the

-

companies, a
of which 265

for

1950,

•

orofSable^mprontaoie
em

1897

Office Tokyo—70 Branches

; Brokers A

half times

a

A^f
v?™
ls?,ue: nof ao renorted but are adiusted
Actual interest charges in tnat "ot aa reporcea out are adjusted
year were small. In 1953, net in- for. stock dividends aggregating

man-

write

Securities Co., Ltd.

general increase in off to $2.12

aimosi seven Times
the requirement on the new detax
doUars"
fnnspnlpntlv
bentures, while the correspondOil and Gas Division was organ
ing fi§ure in 1952 was six times,
ized and taxable income was di- ™e. company has not reported a
reeled toward drilling attractive
deficit in over 30 years with the
prospects
For the six years end
excePtlon of 1932> when there was
ing March 31, 1955, the company a loss of under $3.000participated in drilling, in partAsset coverage for the suborditotal




crease

*

de-

to attemnt to build net worth with

nership

visit

nromnted

stock.

an

Circuit

When in

1930's

ployment of its earnings, and also

United Artists Theatre

ESTABLISHED

taxes,

or

rapidly ; as
Gross
National
Although the rate of in-

par a few months— During the ten

^be' interest

area.

ing

was $194,000.
By
1944, sales had risen to $9,900,000
and net income to $395,000.
In
1954, sales were some $43,500,000
and net income $1,927,000. During the past decade sales have

Product.

return

knowledge

and net income

as

-"rrmallv
bv a
a widp
marnormally covered
covered by
wide margin.
In
1954, for example, net
income,
after
Federal
income

The prosperity of this contract-

agement
agement

0. A. Sutton

37 Wall St., N. Y.

of this

ment

simple^

common

interest rates-

The

is therefore in a position
continue to grow in direct re¬
lationship to the further develop¬

Club, Inc.

Capitalization - is

-y bonds> evei? with the hiSher share- After reaching a
yields now available as the result $4.45 a share in 1950, income

an-

company

The Diners'

a

yield about 3-40%-

this

appeal

vision-

with

with

rovings, mat and cloth on
royalty- basis. As may be seer,

a

underpriced

(Jan. 3)

offices

of Japanese potentiaL

refractory
Through an affiliate it has

risen about two and

-han that obtainable

to

Trading Markets

103 to

develop- ?f *he recent

the

of

These

ago and are now

unusual

investors

to

and

somewhat

Jr.

sold initially at

nnmnanioc1

o™theoffshore

ment

equiva-

bentures

wide

developments and has

regarded

the

lent

panv's management has been' alert'*
new

ap-

possibilities
to be

have

may

:

etc'

machines

and substantial. In 1934, for example, sales were about $2,100,000

preciation

as

branch

our

JAPANESE

portfolio,
having

defen-

enough

uAnm

fTptnr

nant

a

yet

to

SECURITIES

It

section

inclusion
the

NY 1-1557

a

sisting only cf $6,000,000 condebt
(this issue)f and 637.580 shares of
common stock as of Sept. 30, 1955.
Growth
has
been
continuous

sive

at about

to

LD

+lbip company s

plus

ment,

62

for

i's

on

merits

own

Telephone Co.

Scott, Horner &
Mason, Inc.
Tele. LY

Ray

issue qualified

an

ing and

Exchange

Stock
Stock

American

shore activities.

McDermott author>

Exchange
Exchange

Orleans, La. - Birmingham, Ala.

*

1
J.

Stock

Stock

giaS3

convertible 3%% debentures, 1975,

the

New

attrac-

name

York

HAnover 2-0700

interest in the titanium refining business and it nuts out fiber

Convertible 3%% Debentures

in

American

19 Rector SL, lew Yerk «, N. Y.

an

represent)

New

Members

as

such

items.

Englewood, N.J.

Ferro Corporation subordinated

strategically

Members

incorporated
in
1919
principal product frit'

company
has as its

pcwdered

Ferro Corporation Subordinate!

"sue-

a

company

one

being

as

and

capi-

stock

Investment Counselors

Over

gas.

the

The

Vance

^electrical heating elements, glazes,,
nav,.in
tvt
r Tivnrr r
tPain* driers,, enamel and ceramic
DONALD M, LIDDELL, Jr.
plant buildings and
equipment,
Executive Vice-President
etc, i Also, through subsidiaries it
Templeton, Dobbrow & Vance,. Inc. is engaged in the manufacture of

of which

drilled

been

most attractive

a

situation.

in

1955, 68 fields had been discovered
33

to reach the conclusion

gain

traded

off the

If consid-

■
feature

by several changes cf

stoves,

$400 million

in

.

on

for leases and

$50

*
conversion

it is easy
tal

«

tive, it is desirable to review the
background of the company
Ferro Corporation, the successor

given to the favorable, outlook for
offshore contracting business,
that this is

ove r

&

at about 34. To explain why the

this basis and if effect is

on

«

STEINER, ROUSE & CO.
"

=====

the

inhas

the

ready
u s

Al¬

Templeton, Dcbbrow

one

as

approximately

in oil and gas reserves.

and

RIGHTS & SCRIP

viewed

of the last U.S.

betweeA $40

Specialists in

be

Conv

Inc., Englewood, N. J. (Page
2)

per

is

for

Sub.

-

share, a large part of which
being
judiciously
reinvested

$5

one

Corporation

3?6% Debs.—Donald M. Liddell"
Jr., Executive Vice President
dent

opinion, therefore, that
earnings of $1.86
1
J dividend
"
share,
and
of 60 cents
share, are misleading.
This

per

Bought—Sold—Quoted

(Page 2)
Ferro

company's

—
per

tidelands"

McDermatt & Company
Shelby Friedrichs, Partner,
Howard, Weil, Labouisse, Fried¬
richs & Co., New
Orleans, La.

It is my

the

Louisiana Securities

Ray

exploration and develop-

from $2,731,000 in 1951, to $9,432,999> or $4.71 per share in 1955.

the

as

J.

nor

primarily upon
the gene«tion p£,,cash :through
normal operations. J. Ray McDer¬
mott has built up this "cash-flow"

vestment op¬

d

SAN FRANCISCO

f

Alabama &

Sc.cctions

G.

be,

to

sell the securities discussed.)

to

dynamic in-

"

Exchange

Stock

and

constitute

1920

Associate Member
American

New

Louisiana

request

New York Hanseatic
Established

Week's

Participants and

Their

ment is dependent

looking to the development of the
oil

■

in

intended

not

are

gram of

Ray McDermott & Co., Inc.

Situation for

on

offer

as an

FRIEDRICIIS

Partner, Howard, Weil, Labouisse,
Friedrichs & Co., New Orleans, La.
J.

Substantial Gain

be regarded,

to

SHELBY

G.

An Unusual Growth

study

Thursday, January 5, 1956

in the investment and

Investors

Revised

...

on page

7

National Quotation Bureau
Incorporated

46 Front Street

New York 4,

N. Y.

Volume 133

Number 5496

The Commercial and Financial Chronicle

...

,(59)

INDEX

Long-Term Capital Market Outlook
By JAMES J. O'LEARY*

"

Articles and News

Page

Director of Investment Research

Reflections of

Life Insurance Association of America

Dr.

O'Leary holds that again in 1956 demand for long-term

Long-Term Capital Market
Outlook—James J. O'Leary
The

Business in

continuance of trend

area.

rates may rise

above

■;

long-term credit accommodation, in which event the Treasury
find it increasingly advantageous to lengthen its matur¬
ities. Sees no appreciable rise in yields on new
corporate and
municipal securities, and expects another record expansion

Stock Market

Presidential

in mortgage
sures

lending on firm to rising rates. Says political presresult in uneconomic lengthening of VA and FHA

may

r

I shall start my appraisal of the
for the long-term capital

market

by

placing
assumptions

'certain

the

on

table

which

I

am

.making reg a r d ing the'

industrial

and

short, then, it is
assumption that the general
nomic

environment

—John

my

eco¬

which

in

of

eco¬

nomic outlook

extension

an

of

the

First,

the

to

be

in

this

time

the

of

fa-

NEW YORK
4-6551

11

W. Babson

BASIC ATOMICS

12

4

Circular

12

Outlook—Alan H. Temple

J.

year

-/■':•••

Redfield

Dr. Aaron M.

request

HYCON MFG.

WESTERN OIL

_!

:

'<

•

.

on

13

14

FIELDS
14

STERLING OIL
15

The Outlook for
Money Rates—Marcus Nadler
;

it is
fashionable to analyze investment
prospects in terms of sources and;

1956

highly

,a

At

v

Candidates—Roger

Problems Relating to
Currency Convertibility
:-!7 —E. M. Bernstein

present

Sources and Uses of Capital Funds

continue

WALL STREET,

Telephone: WHitehall

10

K. Thurlow

—Commissioner Andrew D. Orrick

high level of business activity.

there

will

99

The SEC and
Regulation "A"

for next year.

.

Obsolete Securities
Dept.

7

Out-of-State Mortgage Investments
by Savings Banks

construc¬

In

market for long-term capital funds
will function in 1956 will be one

.

general

tion.

Cobleigh____

Social Security Program

Prospect—Bradbury

The Economic

mercial

6

1956 Profits and
Dividends to Attain New High Levels
—Charles A. Schmutz—

r

mortgage terms.

outlook

of the

riches

our

.

.

_inay

.

for old
ragged obsoletes!

9

Long-Range Implications
J —Ray D. Murphy

;

*

'

1956—Hon. Sinclair Weeks

—O. B. Jesness

Cites possibility, however, of

whereby short-term

5

Agricultural Price Supports and
Production Controls in 1956
•

will be in the short-term

RAGS TO RICHES
We'll give

Watts

Certain Beneficiaries of West
Coast Gas—Ira U.

Treasury to be important net borrower
ahead, and contends bulk of its refinancing activity

in year

Walter

%

3

Changing Design for Industry and Living
Through

Electronics—W.

Does not expect

AWD COMPANY

Cover

provided by

a

llCHTfnSTflff

Cover

The Imported Car in
America—J. Bruce McWilliams

further expansion of bank credit, accompanied
by a continuance of Federal Reserve's restrictive credit policy.
Looks for resultant upward pressure on interest
rates, pri¬
marily in the short-term sector but also spreading to leng-term

■

Central Banker—Allan
Sproul

a

funds will exceed supply of savings, with the difference
being

rates.

3

*

*

SIBONEY

20

♦

Sakolski Dies

9

'

vorable

psy¬

chology
-both
of

for

consumers

d

a n
w

business

h i

h

c

ures

;

high and

con¬

tribute

O'Leary

further

-

true

This

in

the

field.

with

fact of

a

crease

in

year,

glued to the ground for any
rumblings in the direction of a

Federal

and

they

will

move

promptly to take corrective
In

ures.
seems

the

present

good

a

bet

meas¬

climate

it

that they will

has
real

been

especially
mortgage

comparatively small.in¬
the

Federal

of credit restraint pursued
Reserve.

Our

indicate that pretty

out

the

1950-1955

is

divisible

factor

of

by

four, but it is
importance.

Against this background, I
see no reason for
anticipating
serious

a

small

no

demand

reduction

next

any

in

for

supply of savings and has brought

I

substantial increase in the

a

see

next

no

reason

will

year

be

believe that

to

any

general pattern which has
prevailed
in
the
past
several
years.
The net increase in mort¬

doubting that a further rise in
expenditures for new construction

debt, corporate security is¬
sues, issues of state and local gov¬
ernments, and other uses, with
the exception of Federal borrow¬
ing, should equal or exceed the
uses
of capital funds this year.
In
other words, it seems likely
that again in 1956 the demand for
long-term funds will exceed the
supply of savings and that there
will
be pressure to supplement
savings with an expansion of bank

and

producers' durable equipment
will take place. I am not worried

credit.

about any substantial decline next

continue

Gross

National

..contrary, it is
shall

witness

Product.
guess

my

further

a

rise in GNP,
consumption

year

On

the

that

we

moderate

with both personal
expenditures
and

private domestic investment

tributing to the increase.
the

of

category
penditures, I

con¬

Within

investment

can

see

ex¬

reason

no

for

in nonfarm residential

year

struction for
upon

later,

should

to be touched

reasons

but

occur

doubtedly be

if

the

con¬

taken

will

up

by

un¬

icy
sure

address

by

Dr.

these"conditions

a

O'Leary

cornat

exist,

on

restrictive

credit

resultant

rates,

also

but

this

with

spreading

Market Outlook" panel of the
Finance Association, New York
City, Dec. 29, 1955.

(Boxed)

As We

Man's

term rates.

would

like

to

turn

now

to

a

detailed

more

discussion
on

of

page

From

Washington Ahead

Mutual
NSTA

25 BROAD

Albany

•

Funds

on

Governments




•

Stock Exchange

TELETYPE N. Y. 1-5

•

•

Chicago

Schenectady

•

•

Glens Falls

Worcester

Philadelphia

*

Chicago

*

to

Los Angeles

47
26
21

We Recommend the
40

Prospective Security Offerings

and

Purchase

45

Security Salesman's Corner

of

27

You—By Wallace Streete—

MARLOWE CHEMICAL

16

Security I Like Best

Company, Inc.

2

The State of Trade and
Industry

j

....

4

the
and

inc.

Exchange PI., N. Y.

Direct IFires

29

Securities Now in Registration

.

40

Teletype NY 1-1825 & 1-4844
5

Railroad Securities

.

Mackie,

HA 2-0270

18

a

Public Utility Securities

.

&

8

Our Reporter's Report

The Market

'

morn

Singer, Bean

36
I

Reporter

Request.

trading markets in

than 250 over-the-counter securities

Observations—A. Wilfred May
Our

We maintain

8

Request.

on

39

News About Banks and Bankers

Common Stock About

You

48

26

$1.25 Per Share
1

CHRONICLE

DANA

Park Place,

HERBERT D.
WILLIAM

New York 7, N. Y.
to

DANA

vertising issue)
plete statistical
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and

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Offices:

Chicago 3,

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135

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Monday

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second-class matter Febru¬

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Rates

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$55.00

per

of

year;

Canada,
$58.00
per
Countries, $62.00 per year.
Other

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Record

—

New

Mass

•

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1956

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Subscription

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Thursday, January 5,

C.

ary

9576

SEIBERT, Editor & Publisher

Every Thursday

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Reentered

COMPANY, Publishers

2-9570

E.

Copyright 1956 by William B. Dana
Company

Reg. U. S. Patent Office
B.

Drapers'

Gardens, London,
land, c/o Edwards & Smith.

COMMERCIAL and

FINANCIAL

ST., NEW YORK 4, N. Y.

Boston

Nashville

Bargeron

on

**Prospectus

17

of the News—Carlisle

Notes

REctor

TELEPHONE HAnover 24300

Revlon, Inc.
8

Indications of Current Business
Activity

25

New York

Leaseholds, Inc.

Pacific Uranium MinesCo.*

47

Einzig: "A Communist Trade Offensive?"

PREFERRED STOCKS

Spencer Trask & Co.

Gulf Coast

48

Club, Inc.**

Helicopters, Inc.

*CircuIar

Washington

Continued

Doman

33

Bookshelf

Dealer-Broker Investment
Recommendations

WILLIAM

Members

The Diners'
Cover

..

Coming Events in the Investment Field

The

specialized in

*

-

' -V:

(Editorial)

Published Twice Weekly

have

\

Bank and Insurance Stocks

Business

Teletype: NY 1-4643

29

'V...>'•

See It

Broadway, New York 4

DIgby 4-4970

Corpus Christi Refining Co.

Regular Features
J

The

American

For many years we

42
27

SEC Reports Expansion and
Activities in Securities
Market in 1955

V.

J.F.Reilly&Co.Jnc.

19

Co. Reviews 1955 Bond
Market and
Outlook for 1956__

-

16

&

long-

to

the

"Money

Collectivism!

Halsey, Stuart

pol¬

upward pres¬
interest rates, particularly

with

pressure

I
*An

____

Paternal
.

the authorities will be required to

decline short-term

some

slack

gage

If

"Monthly Letter" Analyzes 1953

exception

the

to

can

by the

estimates

long-term funds has exceeded the

volume of bank credit.

overemphasize the
importance of the fact that 1956

Bank's

much through¬

It

to

this

debt

along with the wise policy

forth

easy

de¬

estate

act too early rather than too late.

is

of

City

The expansion of credit has
been held down ;by the fortunate

ing ^any serious economic down¬
turn will continue to have their
ears

,

an

expansion
economy. Second¬
ly, government authorities charged
responsibilities for prevent¬

excess

by
expansion of commercial bank

credit.

toward

the

National

Recession and Inflation Virus

has been accommodated

mand
Dr. James J.

of the national

"downturn

esti¬

capital' funds this
has outrun the supply of sav¬

ings, and that

ex-

dit

p e n

The

long-term

year

will

;keep their

funds.

we have put
together indicate that the demand

part

*

1

capital

First

mates for 1955 which

on

the

of

uses

York

funds.

GENERAL

INVESTING CORP.

80 Wall St., N. Y. 5

BO 9-1600

1
-

4

the

bull

which

Observations.

risen

market

level

it

to

100,

deemed

was

from the renewed 25 level.
it

Non-Atomic

to

Splitting

1955

v

sober¬

a

and

con¬

structive
fluence.

/ U,

'

i

as

in

importance

Wilfred

A.

perseverance

stimulant

tors

on

split.

a

the high

price calling for

Surely

self-lifting boot¬

a

May

pub¬

most

does

fication.

of

"It

have

in

registered
week

number

shareholders

could only com¬
infinitessimally, propor¬

an

tionate
sales

addition

in

the

to

concern's

the billions.

realistic conclusions.

Some

of

the

ideas

about

of

a

others have pursued, and presumably-will continue" to follow. This

prospective "split" do not even is in line with the expression of
justify the "rumor" coaracteriza-- mass investor psychology depicted
tion
frequently merely repre¬
senting an individual commenta¬
tor's figment of the
imagination,
—

by ~ Lord

Keynes

wherein

likens investment to

a

beauty

he
con¬

test in which the contestants do not

tages. As demonstrated in

recent

a

analysis in "Exchange" magazine,
in
the
great majority of cases,
despite the bull market's con¬

tinuation, it would have been ad¬
vantageous to liquidate right after
the split announcement.
-

sometimes for

And the non-fulfilment of split¬
explaining a market select the lady whom they them¬
rise that has taken place, some¬ selves
judge
to be
the
most ting as an aid to long-term mar¬
times for instigating a hoped-for beautiful, but as being the most ket
performance
has
been
re¬
one. The query, "when is X-stock
popular among the other pickers. cently demonstrated by Bernstein
The
going to split?" has supplanted
investor, similarly, devotes Macaulay Inc., in the following
the logical inquiry, "Waat is it his effort anticipating what aver¬ citations of the record of 23
of the
age opinion expects the average 30
going to earn?"
stocks
comprising the Dowopinion to be. Is this reliance on Jones
Industrial
Average
that
Chronic Scrambling of the
a
believed policy, irrespective of were derived from

1945-54:

Arithmetic Table

The prevalent false impressions
about

the

carries

on

stock

split

in

a

its

validity, perhaps precarious—

as

suggested

certain

way

by

credos

of

the

demise

other

of

eras?

involvement in arithmetic fictions.

when the split

six

Wall Street's traditional
Mental

(1) Although all the stocks went
up

months

announced,

was

after

the

date

of

t.,e

split, 12 out of the 23 had eitner

Pyramiding

up less or down more than
Average itself. Those stocks

gone

In

supporting the market of the
booming 1920's via the holding

of

the

prevalent split psychology

company craze was the credo that

is

the

which significantly out-performed

cumulative

the

the

whole

was

worth

far

more

Another

notable

expectations.

A

characteristic

quality

stock

has

of

the

during

the

Average

typical of in¬
groups whic.i have con¬

dustrial

a

-

are

pleased

to announce

out

.

The

fuss

made

over

automotive

production cutbacks is

disinterest is anything more than
The demand for new cars is still
strong.

consumer

labor

Steel

is

something else,

the

the

23

have

Average

gone

-

United Steelworkers want higher
wages, supplementary unem¬
ployment benefits (guaranteed wage), an unqualified union shop
and improved pension and social insurance
benefits, reports this

authority.:y'; '"Ky

Another
been

industry problem is prices.

in

more

the nature

Where

performed

LYNN SHURTLEFF

and the

firm,

FRED. E. RICHARD

Average,

quality

industry

where

equally

great,

stock

one

followed

by another boost, probably in

This would make
The

Detroit

has

regular

a

intention

no

suppliers.

costly conversion
weekly.

The
and

of

on

the

Co-Manager of

our 509

Fifth Avenue office.

Performance

market

which

has in

by-passing

carmakers

warehouse

any tonnages from their
backing away only from
commitments, adds this trade
•'
V v"
are

with orders outrunning production,

.'•=

NEW

Co.

10

POST OFFICE

in the

in

deliveries
mill
to

into

line

with

promises, the possibility of

maintenance problem and the producers' own

Worcester

Albany
Montevideo

January 1, 1956




more

It's

8,000,000-unit production
ji

Sharp

;

Portland

Amsterdam

was

still

are

agency,

mark for the

calendar

*

statistical
/

As all

plants stopped assembly functions Friday afternoon in
preparation for the New Year respite, an estimated 7,940,862
cars
had been built during the year.
The total is 59,138 units
—or

the

about

and

one

Last week's
or

one-half

normal

production

days—short

long-term

104,982

anticipated turnout of 118,797 domestic vehicles,
13,815 trucks fell 30.1% below the preceding

and

cars

week's trimmed
cars

and

down Christmas pace of 169,984 units, or 150,881
19,103 trucks; moreover, "Ward's" added, the past week's

We
f

—

■

that

on

we

announce

have become members of the

NEW YORK STOCK EXCHANGE

We

are

pleased to

announce

the election of

James W. Brooks
(.Member ol New York Stock Exchange)

its

Vice President and Director

and the

years

following

as

Vice Presidents

(Resident in New York)

selling

A. Sumner Gambee

William F. Lecraw

for

Bull

irrelevant
function

replies
to

him

of

logic

on

the

performance
that
in

they

his

habitual

market

habits for short-term gain. But the

question
within
prove

may

be

this area,

safe?

asked:

»

Lee Higginson Corporation
BOSTON

NEW

are

exploiting

YORK

CHICAGO

MEMBERS

New

York, Boston and Midwest Stock Exchanges
American Stock

Investment

Even

will such policy

of

8,000,000 goal, said "Ward's."

*

qualms based both

-

1955.

year

holiday
production
cutdowns,
said
the
largelyl responsible for the near miss.

were,

bull

selling

■

just

on

been affected

stock

*

To

Avenue, N.Y.

Maplewood, N. J.

a

two

acute

about official now, "Ward's Automotive Reports"
Friday last, in its comments that the automobile industry has fallen short of the much-coveted and much-discussed
stated

',

for steel

need

help meet expansion requirements, concludes "The Iron Age."

Average which have acted
poorly

Split

Springfield

way

r

depleted
relatively little chance of improving them soon. -.But they'll
there pitching to rebuild stocks both to assure continued
production in their own plants and as a hedge against a possible
strike.
Working against them will be the mills' efforts to bring

be

was

the

in

a new

and

less than $50 a share!

and

509 Fifth

entering

3-to-4-month backlog

Indeed, the five stocks

SQUARE

BOSTON, MASS.

Avenue, N.Y.

at in 1953.

most

of Principal Exchanges

YORK, N. Y.

579 Madison

&

Established 1892

25 BROAD STREET

a

same

though

began

no

by the price

Members

consumers.

the books and certainty of a full schedule for the first six months.
Consumers are facing 1956 with their inventories

not split.

was

(4)

ago

Hayden, Stone

other

can

appreciation
even

y

"

to

For the first time in years, steel producers are
year

-

the neighborhood of $8.'

total for the year of $11.
letdown will bring no relief

auto

of roughly

in

have

of technical

adjustments to bring extra
processing costs into line. - Base price increases have been
scattered and put into effect largely by the smaller
producers,
but the need for a general price increase is still
present, continues
this trade journal. A good guess is that steel .prices will be
up
an average of $3 per ton
by March. The labor settlement will be

as

as

date

to

split stock has out¬

a company

comparable

appointment of

a

the

always find

...

yy/'.y'-

Revisions

six

T

(3)

our

•"

than

split.

General Partners in

year-end breather.

/

less

up

in fact,

—

actually very considerably lower
they were at the time of tne

JOHN J. McMAHON

as

a

stalemate at the bargaining
table next June could knock
everything into a cocked hat. The
a

Continued

of

than

pre¬

will really know until later in 1956 Whether

no one

have gone up by less than half as
much as the Average-and two are

R. BRETEY

and

moderate decrease in

(2) Between the date of the
split and the present writing, 13

the admission of
PIERRE

a

'V.:.'y

■'

.

steels.

We

Index

steel

the

mature, since

were

sistently out-performed the Aver¬
age during this period regardless
of splits—the oils, chemicals, and

Production

Wednesday of last week, but over-all output
noticeable increase above the level of the similar

year ago..

^

v

Auto

Business Failures

industry producers are off to a running start
toward a probable all-time production record of 118-120 million
ingot tons in 1956. There's just one dark cloud over the horizon
and that is steel labor,- '"The Iron
Age," national metalworking
weekly, states this week.
y

trade

,

a

In

One minor

temperature has

Industry

Price

'

broader

the

Trade

Food

the period ended on

justi¬

some

stimulates

increase

an

pose

,

one

speculative

Retail

Commodity Price Index

Total industrial production underwent

stock-split, from corporate
management's viewpoint as dis¬
tinguished
from
the
market's
attitude,

Production

Electric Output

u

The

disadvantage to the
attempts to justify it on its
shareholder from splitting that
logical merits. The merest chal¬
been
the
has been generally overlooked is
stock-split
jamboree.
lenge will usually elicit the quick
Far more significant than t.je ac¬
the increased custodian fee calcu¬
admission that splitting does not
tual splits, numbering
73 Stock add anything to the intrinsic value lated on. a per-share basis that
ensues
from
Exchange issues last yfar (dou¬ of an
an
enlargement of
lissue; that three-thirds of a
ble those in 1954 and treble 1953's)
the number of shares owned.
~
piece of paper are worth no more
has been the market
community's than
the
original
whole.
The
The Long-Term Market
attitude toward the process. It is
split's
defenders,
reflecting
a
-Performance
the public's excessive excitement
widespread Wall Street proclivity,
about tbe device, whether
The market performance record
actually rest not on justifying what the in¬
effected or merely
rumored, that dividual himself should do, but on surely justifies the doubts about
calls
for
the
the
dissemination
of
longer-term market advan¬
exploiting the behavior foible that
lic's

and

strap operation!

now

categories
of
the
market community is particularly
remarkable since
practically no

as

thermome¬

split's

bullish

a

among

Steel

•
*

State of Trade

the

the

from
stock

.

Carloadings

process

The

Probably

ter of the

w

/*:

'

foremost

rJk

"i

h

in¬
.

a

■i

\

to

The

■'/

tic is

might

have

ing

f

in

split

■1

When

close

distribution, and such broadening
speculative arithme¬ does often entail advantages. But
again awry, in operating on even this benefit may be exag¬
the premise that the constituent gerated, as in the case of expecta¬
parts will be worth more than the tions of increasing consumption of
the company's product, as in the
whole.
case
of a recent retail organiza¬
Hiding Behind the Other Fellow tion where the maximum expected

J

the

forefront

at

100 peak, the rise as well
promise of further advance
is justified by market commenta¬

..

which

levels

t,

Thursday, January 5, 1956

former

as

Perhaps by way of a holiday than the sum of its parts—and
hang-over, this column feels it the- greater the pyramiding the
may
be timely
to offer some greater the plus value. Thereafter
words of caution to the investor during the sour market psychology
of the late 1940's the public per¬
at this begin.
sisted in
valuing the whole of
ning of the
the dissolving public utility hold¬
New
Year.
Citation of
ing companies at far less than the
sum
of their parts.
some
market
Now in the
foibles

re-attains

;.

...

ad¬

vantageous to lower its price via
a
4-for-l division. Subsequently
the
price resumed
its aavance,

•

•

By A. WILFRED MAY

came

r-f *•

-

.

The Commercial and Financial Chronicle

(60)

January 3, 1956

Exchange (Associate)

Banking Service Since 1848

page

34

"i

Number 5496...The Commercial and Financial Chronicle

Volume 183

than

more

;

A

i..

is

Mr. Watts calls attention to the contributions of electronics to

comer

elec¬

ments

—

tronics

as-!

—

sumes

in
of

war—the

devices

assessing

instruments

our

future and

so-■

been hailed

many

sci¬

t i

w e n

e

t h

nuclear

And,

for

little

more

became

tron—the

than

found

a

mate

fully developed industry at this
moment. Significant contributions
a

made

were

after-the

conflict

vast array

had

ended

and

of peacetime applica¬

tions suddenly loomed ahead of us.

Today,
tions

recognize

we

methods

modern

depend

must

all

that

by

telephone, telegraph,
facsimile, teletype, radio broad¬
casting and, of course, television.
None

of

modern

these

could

service

dpmartds

render

the

the public
employing the
working the magic of
^

'

to

some

You

are

tape

re¬

pictures, radio, broadcast¬
telecasting.

Transportation

in

*An address

for

the

has

is

modern

the

,

we

than

Workers

outlets

;

more

addition

In

than

3,000,000

The
nual

present
sales

going

volume

of

amounts

the

"around

years ago.

Now

are

will

be

in

34

million

households.

By the end of this

year,

set

the

total TV
American

may

exceed 43

the other.

Industrial TV and Electronics

television
one

as

has

of

These machines have the capability of performing the most in¬
netted

v

social
and
cultuial
forces in history.
Never before
have so many Americans been in¬
terested in great music. Never

,

television

in

plants

11

1

_

O

for
11

-1

/i/\

business

try

that

the

in

industrial

when

few

years

"Eye-

«

by

are

And

have

never

so

many

persons

fill

their

leisure

been

able

to

hours

with

fascinating entertain¬

iinn

rt r\

In

enterprises,

such

Systems

relay systems

As

communications.
such relays find

distribution

the

to

color

television

miracle

the

into

expansion.

have been

-an

This

electronics

of

earlier wonder of

white TV into

network tele-

of

Company
;

but that is only one

—

similar systems can pro-

oclvlvr'=- "

ai

°

Continued

on

•'

■'

;

■

v '

.•

\

'•

'

"
■■

•

'• "

.

JOSEPH

MR.

V."}\

■

' •'

'•

;.,7f \

•

.

J

-

1

..

'

.

>

_

•'

.

era

of

F. VANDERNOOT

HAS

BEEN

ADMITTED TO OUR FIRM

AS A GENERAL PARTNER

R. W. PRESSPRICH & Co.
INVESTMENTS
NEWTORK STOCK

NEW

.

..

.

EXCHANGE
1

n

PHILADELPHIA

BOSTON

YORK

JANUARY 1,

1950

translates

black-and-

vinced,
advance

in

that,

a

many

mass

communications.

In

We take

today's living, color has be¬
come
the
great motivator of
choice.
It is the prime factor in

pleasure in announcing that

selecting homes, clothing, auto¬
mobiles, food and drink. Far more
than something pleasant to view,

ELBRIDGE T. GERRY

color

and

our

action

We

are

pleased to

that

announce

eugene II. catron

immeasur¬

Homer F. Locke

in

their natural hues.
It' brings new brilliance to the en¬

JOHN C. WEST

as

adds

ably to the power of broadcasting
by its ability to convey scenes

and

have been admitted to

television

Thomas II. McGlade

tertainment arts, as

we1! as open¬
ing vast creative possibilities in
education, advertising and mer¬
chandising.

firm

General Partners.

These

are

the

reasons

why RCA,

have been admitted to
as

our

firm

General Partners.

which pioneered

black-and-white
television, has worked so hard
for so long and expended such

Brown Brothers harriman & Co.

enormous

PRIVATE

BANKERS

Business Established 1818
BOSTON

NEW YORK

PHILADELPHIA

^

..

-

■




color

to

of

money

to

transmitted

electronic, compatible color tele¬
vision.

CHICAGO

;
January I, 1956,

amounts

sight.
This has been achieved with alladd

The
compatibility
feature,
which RCA insisted upon, assures
the

au v

page

v%:

,.

• t/-

newest

vivid, realistic di¬
of us are con¬
represents the foremost

mension

use

vision programs by the Telephone

witnessing the "break through" of
major

know,
in

you

extensive

'

.

orderly introduction of color,

t~C rv

devel¬

are

WE TAKE PLEASURE IN ANNOUNCING THAT
•

v»

represent another remarkable
product of electronics. These sys¬
tems are changing the design of

represents today.

'

n

large
this

eventu¬

can

machines

Microwave radio

•

will represent a bigdollar volume for our Industry than entertainment television

■■

recent weeks, we

1

1 v>

in
and

usage

Microwave Radio Relay

TV" systems

MEMBERS

ment.

an¬

should

system

a

wide

oped to a point where they are
simple and sufficiently inexpen¬
sive for general use.

indus¬

smaller

next

the

and

titi

ally bring in hundreds of millions
of
dollars
annually,
especially

standpoint, it is
our

v* r/\

into

branch of electronics

other means.
a

i

industrial

temperatures, amid noxious chem¬
ical gases, and in depths of water
impossible
for
observation <■ by
From

/-v

come

production lines
and other activities, for viewing
processes that may be too danger¬
ous or inaccessible to workers, for
cheeking meters and gauges, and
for education and training pro¬
grams. I should like to point out
for your speculation that indus¬
trial TV can be used effectively

the belief of leaders in

"Bizmac"

RCA's

remote
_

of

have

so
many been so well ac¬
quainted with the working of our
democratic form of government.
Never have so many been kept so
well
informed
about
the
daily
news events affecting their lives.

con-

witfi cost accounting, in-

Another promising field in our^ventoryUc an t r o 1
and general
industry is that of industrial tele- .bookkeeping; They function with
vision and electronic equipment a speed apd'accuracy far beyond
for manufacturing plants. By in¬ that of human clerical workers.
dustrial TV, we mean the use of
During the next few years,

major

economic,

out

come

•.;

become

the

will

>

.

ger

recognized

industries

and

information

of

lot

'thirt^arid^WsiWers will

major factor in

a

offices
a-

be put in at one end of the ma-

;

?

in

.

where

on

expanding
vigor
city to city and coast
to coast so swiftly that the full
significance
escaped
general
notice until virtually the entire
nation felt its impact.

employees

rate

from

came

only nine

to

Television's

serving this industry indirectly.

by Mr. Watts at the New
Research, New York

sight

sent it from

num¬

there

132

million.

retail

directly

coun¬

estimated

an

purchases by
public since 1946

150,000.

employed

3,000

the

air, with programs seen and

heard

the electronics industry now total

Social

City.

service

and

more

distributors,

pro¬

than

across

use

other

By the end of 1956, color tele-

_

America

than 400 TV stations

more

industry

v

Wholesale

ber

—

corner"

economy.

broadcasters.

of

being
Color
World

of the 1955
epic milestone; footsports classics are

was an

and

observation

mod¬

receiving

more

is

there

sound

up-to-date

an

bring

electronics,

Television—adding

2,500 manufacturers and 3,730

dealers

from

Now

1,600,000.
its

concept owes its great speed and

School

of

all familiar

reproduction;

try;

which, with radio and television,

cording and reproduction; talking

and

are

homes

sets,

recently about electronic calculating and business machines. We
call the RCA system "Bizmac"
and it is our expectation that they
will perform important functions
not merely for rapid calculation
and use in sciehtific work, but for

pre-

in darkness with infrared attach¬
million radios, including those in
ments, at extreme high or low
31 million automobiles.

more

when

America's

resented

Electronics today

•

these—phonograph record¬

motion

amazement

Here

„

and

take

the

radio

broadcast stations

figures:

Moreover, all modern types of
mass entertainment depend upon
with

admit

of

grams

Scientists esti¬

would

it

that

its control.

the electron.

paradox that such
hinges on the elec¬
particle to be

Nature.

the forerunner of the

97 %

butions that this growth has rep¬

without

electron and

in

As

have

smallest

that

their

radio broadcasting first went into
service only 35 years ago.
Now

a

....

You doubtless have heard much

reacning

are

programming
is
impressively.

following.

with

seen

greater achievements.

art and science of

size

pos-

con-

tricate; Statistical operations

acquainted

We have

the

of

prices to

Electronic Business Computers

•

the electronics industry.

even

ern

ball

vision

Television

us

sets

and make

sumers.

pick up :

can

up

coverage

Series

t©

Yesterday become real¬
Today — and we have con¬

ities

selves—will appreciate the contri¬

That means,

likely

TV

fidence that Tomorrow will

Business executives—like your¬

the electron.

upon

stepped

dreams of

America's

to

of

tive faculties.

review its progress.

communica¬

of

Color

yet

hi manufacturing

the market and will be purchased
in
ever-increasing
numbers.

of
to be¬

,

color

ferred. 21-inch

us

have

that

sets

or

many

are

sible lower selling

mentioned,
the
color
through" is now going on.

Excellent

surge

again be in products

services

Those

covering 2,500 square miles. Yet
the growth of electronics as an
industry has been so swift and
so extensive that even many of us
accustomed
to
its
potentialities

World War II, but its industrial
potential began materializing only

will

I

than

electronic scientists and engineers
have deep respect for their crea¬

electrons to weigh an ounce than
snowflakes to create
a
blizzard

by electronics during

more

Radio and

Economy

importance
industry

is

it

color

that

As

-

.

continuing

reach the market.

Peace

under r study

now

Watts

decade age—and it still is far from

ing

and

nations.

It is indeed

an

as

discernible

ing

in

Atoms

Contributions

.

Walter

W.

Century, its
stature

a

Electronic

destruction.

of

the

of

ences

that

hence

of the

op.e

wonder
T

detection
and
controls

signal

essential

are

programs

as

*

the

opment

in-American

now

black-and-white broadcasts.

that 80% of business done by the
electronics
industry 10 years

key to radar,

communications.

commendable

tronics has

on

developments leads

lieve

conversely, the electron is the
partner of the atom in the highly

cial progress. I
While elec¬

the market 10

instru¬

modern

most

degree of importance in

and

also

-

tiny electron is the prime

guided
missiles,
warning systems,

high

a

and services not

And

sets

billion dollars of > "break

a

Fully 80%

new

complexities of American, dependability to., electronic,, de¬
business and industry have mount¬ vices that perform seeming mir¬
ed to such an extent these days acles on land, s^a and in the air.
The

geared for

business this year.

Likewise, in use

.

homes, without any additions or
adjustments to receivers. It. means

associated. RCA

am

years ago.

The

factor

; White

of
this total will be sales of products

of radio and televi¬
sion both in the home, in industry, and in science. Gives high¬
lights of the progress and potentials of electronics and the
effects thereof on economics, culture and society. Concludes,
for the good of America, the arts and sciences are challenged
to work continuously closer together.

a<

our

.

Radio

America's economy and reviews progress

new¬

in

disrupting the present
great television service; It means

order develelectronic de* thiat
all color programs can be vices enabling automatic opera> seen on the millions of .biack-and.- ..:tions! that reduce production costs

V..V:r\

I

with which: 1

even

without

-

fascinating aspect of this in-

ample of this can be shown by the
Corporation of America*

Components

Radio Corporation of America

relative

industries

:

-

making
foremost

dustry" is the rapid rate of change
in products ana services. An ex¬

Executive Vice-President, Electronic

that

the

of

one:

manufacturing

'nation,

billion,

$11

electronics

:

By WALTER WATTS*

5

(61)

Shields & Company

•

32

6

(62)

The Commercial and Financial Chronicle

1951,

Business in 1956

The

In

•

forward

fact, when

for

the

entire

chances
be

are

ot h

a n

record

e

to

year

in,

are

the

bright that 1956 will
r/// ://'V/:t-..

Let

is clearly ex¬
cellent for the
.

for

the

facts

hand

As

In

antici¬

the

Weeks

•

The

be

surprising if, later on, some
parts of the economy experienced

breathing

spells,

from

current

rate

to

underestimate

dynamic

tivity
time
new

rate

Gross

»of

all

and

•

to

potential

level

time

off

and

long-

of

Business

economy.

can

the

a

bit

uct

was

from

then

is

widespread

services

6%

from

1954

and

top.

stant

dollar output

with

this

con¬

year

was

the postwar period
exception of 1950 and

the

of

rise

nearly
goods

consumer

greatly

record

a

At

to

billion,

6%

larger

than

The

of

income

led

the

combined

advance

influence

of

all

of

.

also

occurred

non-farm

other

in

in¬

Announcing...

received

I

an

changed from

enlarged investment

)

C

-

* '■■■/•■.

to

.
.

serve

you

Expansion

better

■

&

CO.

(

i

I

j

of

i

Government

goods

and

Since 1903

have been consolidated
name

"

the

CO., Inc.

'

Federal

Government

was

declining

a

proportion of
output
during the

nation's

for

national

security
purposes
minor, holding in the $40billion range.
By the third

llV2%,

the

lowest

since-

early

"

1951.

Boothby, Vice President

was

valued

was

$1V2

at

billion

Capital outlays by
and by trans¬

buying, »which had
throughout 1954, advanced
strongly during* 1955 and
purchases of most types of goods

'

and services

in

.

'

/

of

well

over

7

was

million

with

quarter,
/

•

a

million

previous

major
BETHLEHEM
SUNBURY

—

—

larger Philadelphia quarters

February 15) in the Central-Penn
our

EASTON

set

CAMDEN

are

National

Bank

present offices will be

re¬

tained at both 1529 Walnut Street and 1416 Chestnut
Street.

of

rose

1954

$35

was

types
of
appliances also

$5%

in

1955.

durable

sumers

to

Most

year.

Total

$29

billion

in

billion

pur¬

goods

from

by con¬
billion in

1955.

higher

consumer living standards and
expansion of markets for business.

R. W.

Pressprich Co.

reduction

in

-of

1954.

the

increase

the

addition

in

at

ing and retail
stocks

of

i

the

the" business

both

of the New York Stock

noot

Year-End *

draws

to

situation

is

Most

of

a

one-,

of

compre¬

business

ac¬

highs.

new

j

as

inflationary pressures*

to be tempering somewhat

and

averages

wholesale

of

prices

con¬
re¬

'.T*

(Special to The Financial Chronicle)

SAGINAW,

•

close

few sectors, such

Comprehensive

partnership.

'

Johnson

Kenower,

is

Mich.

—

T.

affiliated

now

MacArthur

Rky
with

&

Co.,

Bearinger Building.
r

2 With

*

■

in

(Special to The Financial Chronicle)

Expenditures
and

for

services

non-durable
were

each

substantially higher in 1955 than

■ t

W.

Carey

and

Homer

C.

Steeg

have become affiliated with Min¬

neapolis

Associates,

Inc.,

Rand

To\Ver.

REITER-FOSTER OIL CORPORATION'
Announces the Election of

MR. EMIL V. HEGYI
AS

1953.

goods

1

Minneapolis Assoc.

MINNEAPOLIS, Minn.—Glenn

,

sumer

to

With Kenower, MacArthur

firms. '

residential construction, and poli¬
cies of credit restraint designed
to minimize

Exchange,

have admitted Joseph F. Vander¬

in

Occurred

making
a

Pfessprich & Co., 48 Wall

Street, New York City,, members

manufactur¬

goods

at

measures

are

R. W.

nearly the same
In keeping with
demand, most of

durable

year

more

compared with

as

levels

I Situation

/ Admits Vandernoof

was

little

v

added to stocks

was

during the year,
amount

A

This

than

;

rising,

in

markets,

than in the highest

household

records

chases

completed

more

> a

/

„

income

consumer

the sale

passenger

automobiles in domestic

Building, 1401 Walnut Street,

than

inventories

1955.

than $3 billion

As

fourth

years.v

•.Investment

%

record

heavy business ..invest¬
enlarging
our
productive
capacity and impraving the effi¬
ciency of operations ample oppor¬
tunity exists for further advances

higher
though under earlier

resumedin

a •

A

indicated. /.

wih

and

lic utilities industries wer£

peak

1954.

is

at record rates.

were

Especially notable
'

Mutual Funds

and

other

•

of

season

and

ment

the

were

the

With '

firms

companies

months

October

10% from the

up

quarter of 1956.

than

more

in

were

further rise scheduled in the first

billion.

equal to the record

1953.

quarter,

equipment ..which* have been
rising strongly since ' early this
year were projected at $31 billion

plant

of

third

and

in

the advance in aggregate demand.

risen

Guaranteed Railroad Stocks

—

$28.3

still

was

Business expenditures for plant

machin¬

last year and

appear

Consumer Demand Strong

Municipal and Authority Issues

—

of

equipment by nonfarm busi¬

ness

This

October, 1954.

the

sales

Christmas

new

in

spending

in

Retail

same

inin

to

quarter,
seasonably adjusted
of
$310 billion by

rate

November

was

billion

continued

fourth

more

Utility Securities

PITTSBURGH

systems

$24

investment

Easing in

Philadelphia-Baltimore Stock Exchange




to

tivity

Dealers in Bank and Insurance Shares

(about

1954

national

Members New York Stock Exchange

our new

in

quarter of 1955 the share of .gross

JOHNSTOWN

public

investment in

Philip L. Lee, Senior Vice President & Secretary
Harry Grant, Senior Vice President & Treasurer

Industrial and Public

of

assembled.

which compared with $238 billion
in the third quarter of 1954.

highways,

construction

Theodore C. Sheaffer, Senior Vice President

•Consumer

♦Until

and

hensive

Stephen G. Duncan, Vice President

—

active,

sewer

million

advance of $21 billion

an

reached

$200

billion

1.3

rising, from the seasonally- ad¬
justed annual rate of $256 billion

in

$12

buildings,

$41

Heatly C. Dulles, Chairman of the Board

of

the

Consumer

1.3

only

a

rate

the

were

income

into

annual

con¬

—

and

cars

attaining

more

increased

Bertram M. Wilde, President

John H. Blye, Jr., Senior Vice President

started

total

a

general prosperity.

product absorbed by the
Federal Government had fallen to

advance

con¬

private

exceeded

were

Willard S.

""PHILADELPHIA

units

the railroads

of

slightly

"

~

of

Construction

portation

the

were,

at

were

The

Personal

and other types of producers'
equipment rose from $22

and

in output

chases, chiefly national security
expenditures, was partially offset
by a $2 billion increase in outlays
by State and local governments.
taking

&

residential

outlays
to

1955.

year

year, as total production, increased,
while fluctuations in. expenditure s

JANNEY DULLES
■;

and

purchases

services

1947-49

operations

million trucks

/

Total

little

1955—$1 billion—as a
drop of $3 billion in Federal pur¬

!The

of

dwelling

Private

as

in

the

higher than in

1954.

million

Dollar

than in 1954

lower

WURTS, DULLES & CO,

building.

to the nation's capital stock which
the
highest /previous

year.

i

went

1955.

matched

and

above

previous high was in
1950, when 6.7 million cars and 1.3

commercial

largest ever
reported.
Expenditures
by
the
manufacturing, railroad and pub¬

was

8

trucks.

outlays, hit a high mark
$16.3 billion. The number

commercial

for

was

private
economy.
It provided rising liv¬
ing standards for an expanding
population, as well as an addition
year

rose

capacity at the year-end
as
the industry finished
pouring
117 million tons of
steel, 5% more
than the previous high in 1953.

October,

over

ery

Private

the expansion

force

In November

year.

12%

mill

from

r

Markets

All

•

Since 1907

under the

in

about

virtual

of

military facilities increased,

1954.

Occurs

;.'

;.

,

J

last

JANNEY

were

Steel

struction

very

company
1

i

costs

to

labor

pro duct i 0 n

and

November,

of

educational

pro¬

lower

were

production

increase

and

constitute

ments, each
high. Income
prietors
declined,
prices

volume

all

one-half

billion

however,

civilian

44%

was

increase

than

rental income,

farm

from

also

average,

previous

struction/ which

and water and

proprietors,

of

it

private,

the

The

of this

part

residential

industrial

durable

new

the

throughout the

even

and

in

and dividend pay¬
of which rose to a

(•

record

million

in 1953.

Advances
come

MX

million

unemployment

of

Industrial

industry had

over

1954.

/: Public

1954 and $10 billion from the pre¬

vious high

billion
in

a

i95°.

of
pay.

rise of $12.5 billion from

a

of

million—was

major industry divisions and total
wages and salaries reached $209

billion,

three

brought an unusually
large expansion in the size of the

Outlays

public
and
$42 billion, an

into

of

increasing

in

rose

reduced

successful
year.
total construction

expenditures for

the

employment,
longer
hours
and rising rates of

Payrolls, also

Construction

highly

$41/2

small

pay¬

work,

of

corresponding period of 1954.
The upsurge in job opportunities

almost all of the rise in construc¬
tion expenditures and all but a

steadily

under

was

during the lat¬
the year. This was an

though a fur¬
ther moderate rise
in
building
Motor vehicle producers were
costs occurred
during the year.
Private outlays accounted for completing the assembly of nearly

constant

rose

employment

the

borrowing.

consumer

value

also

1954.

Industrial

rose

million

65

ter part of

fi¬

was

hew construction put in place

1955.

rolls

increase

construction

record

$269

the highest on record

in

Total

year.

in

billion

and

reached

dollars

1955.

billion

$16

of that date.

The

income

Personal

of

ing Oct. 31 to reach $34.6 billion

another

disposable

throughout

$252

31/2%

in

important, little change in

was

this

by

all

per¬

in

employment

labor force.

American

reached

—

1955

advance

of

Record

prices acompanied this
gain in dollar income. Per capita

in

of

increase

Consumer credit outstanding rose
$5.7 billion in the 12 months end¬
as

and

of

During

1954.

nanced

output

flow

the

taxes

total

Part

$303

personal

strong influence

a

activity,

enlarged

income

Most

pro¬

the largest in

and

of

Product,

1953, the previous
The year-to-year advance in

up

over

consumer

changes the Gross National Prod¬
4%

in

billion, personal
income was up $15 billion from
1954.
Disposable income — the
sum remaining after the
payment

con-

After allowance for price

ac¬

from

generate
force for another climb.

.Confidence

The

has

rose

our

Sales

been lower.

consumer

around

a

an

out¬

was

each

were

1954.

above levels attained in any prior

1955,

General Advance in Income

sonal

to $387 billion in 1955,
the highest on record.
The in¬
crease over 1954 amounted to
$27

of

of

substantial

a

wholesale, indus¬
prices
have
been
rising
moderately : in
recent
months
while
agricultural
prices
have
trial

pushing the economy to a record
performance in 1955. Consumers
spent

expanded,
their

1955

billion from

to

services advanced.

year the

nation

National

goods

duced,

billion.

growth

types

all

.

Never

baul

they adjust
extraordinary

normal

more

a

the

output

billion in

$5

purchases

general advance.

increased

orders.

new

which expresses the market value

as

industrial

experienced

production, employment,

prosperous

expansion

main stable. At

rNon-durable

year.

The substantial rise in

and

the
high

new

enjoyed. Growth was
tinuing at the year-end.

,

sustained

a

public.

closing
to

quarter

rapid

$91

up

lays for fixed capital investment
producers of capital goods

the

in

I ever
Sinclair

It would not

growth.

just

year

expanded

income,- making the

most

activity.

the

the

and

pace

business

of

well-being

from

a

generated

economy
levels of

for
,

pate

detail

Record Prosperity in 1955

at

are

now

in
the

—

history.

last

to

me

individual

not
firm

enough

1955

private enterprise system, created
the greatest era of abundance and

first 6 months

half,

of

fascinating
story of how the American people,
under the leadership of President
Eisenhower
and
through
their

eco¬

1956.

examine

us

as

businessmen

have another good year.

can

record

nomic outlook

of

into

we

were

dential construction at the begins
ning of the year broadened out

spending rate is high. If botlx,
As
people and government act wisely

year.

The

through

quarter

the

good year.
the total figures
a

at

the automobile industry and resi¬

living standards and expansion

of markets for business.
I look

program

earlier

any

goods at $126 billion and services

year

ried

and the opportunity exists for

consumer

in

from

-

greatly

a

which had started in the latter
part of 1954 continued with vigor
into 1955.
The rising trend car¬

bright that

are

1956 will be another record year, reviews in detail the record
of 1955 and asserts as the year closes, the business situation

of general prosperity,

and

began favorably as
the recovery in business
activity

Commerce Secretary, expressing view chances

one

stimulus

defense

important influence.

an

Secretary of Commerce

is

the

hostilities

expanded

By HON. SINCLAIR WEEKS

further advances in

when

Korean

.Thursday, January 5, 1956

..

PRESIDENT AND

DIRECTOR

Number 5496

Volume 183

The Commercial and Financial Chronicle

...

(63)

The

choice

Great

;

By IRA U. COBLEIGH

to

Enterprise Economist

at

few sections and

quite
companies in line to benefit fronr the fetthfcomittgWest

young
•

..

r

.

'

r

•

-While there may be some feel-

some

make

.

^

^

;

^

delivery; and

(2)

warrants"

purchase 35
$5

and

v

till

produces

Cascade

the

.

.

14,

of

common

have some earning

in 1956,
additional distributing maihs, and
sa- 428 more miles of service'lines^

security

plaftsft

^

V

i

a s

1956

n

will»be

wori-

addition

to

20-year

contracts

franchises)

Cpf,,

the
with ^ Pacific

New York

p,?^i
Scudder Fund
5 are comm°n ?t°ck-

;u

'in their belief U j The 'keys to this whole new-arid
f., i h a t" natural enlarged distribution network^ (in
::

*ig

to
In"
possiDilittes ..to .ln-

Ind
&ohI ol lervice ^areas

in the

"

—

Inland Natural Gas Ltd. is

are

an-

other, logical beneficiary of pipe-

j derful, ^ espe- Northwest Pipeline Corporation - hne supply.^ Here we have a cpm4fcialiy in th e for gas supply.' These, arid allthe> Pany-created in 1952 as a holding
•■f N?ot bhw es't.kntirer minutiae-ol financing,;"capi-?^Gdmpany^ -designed to distribute
»,); T h & pleasirig talization, rates, .Construction,* ter- ? (undei^-ffanchise from Westcoast
i V p i c t u r e./Of' ritory" and t\
operations,^ etc., are " Transmission) natural gas in ;a
,

*

'

portant

light

company

into'the

entrance

of

paucity '(and

distribution, will be

our

of

7>

discussion.

Our first company is Cascade
Natural Gas Corporation. Organ-

Jr

•

x,

*

ized just three years

1953), it

n

ago (Jan. 2,
dedicated to the be-

was

that

v

the

rather

are

2,175,000 shares

p?J?Ti,jn';ofi!.Inlarld:Natural

Gas Ltd. corn-

J.uVL

set

integrate
for

$3.75.

1!? uemral, Aiperta, including Atn
abasca, St. Paul, Leduc Calmar,,

neariy $5 million and (3) the big

r§afnaKandJP^m, ^!^er,T1*5 British;
Columbia,
Bottled Gas Ltd. serves
LPG around Victoria and Van,

,

and there, f a natural gas

eouver,

S„ Smi ^

Z

a

out

to

assemble

and

number of companies

a

more-sizable organization,

more

agement.

Firstf to

(July 1, 1953)
Company,
ton; arid
ties to

on

was

be

acquired

Bremerton Gas

Bremerton, ,* WashingJan. 1, 1954 the facili-

Yakima,r Walla Walla

serve

and Clarkston, Washington; Lewis-

ton, Idaho and two cities in Oregon were acquired/Today Cascade
has distribution,;, or -construction
plans to serve, 26 communities in

Washington, .Oregon and Idaho,
embracing a population of about
313,000 in one of the fastest growing sections in the United States.
These

this

few

a

of

at

Since

the

vertible

the

of

issuance

The

con¬

should

factory

to pay

along ^with

stock dividends and would

ning with

We

provide

tho

over

for

satis¬

well secured,

a

rea¬

during the

/.

.

pleased to announce that

are

communities

all

fall

along

iumbia
+hp

distribution

ninpiinp

the pipeline,
-

These

feeding

companies

nadian

will

pick

confined
LPG-Air
of towns

operations

mainly

to

the

are

central' sections

For this LPG-Air will b3-

substituted?
substituted,

in
in

522 Fifth Avenue

NEW YORK

CHICAGO

YORK

NEW

PASADENA

Su*l\' gr(Dwing';>'W?1L

natural gas companies

SANTA BARBARA

•

SAN

PITTSFIELD

BEVERLY HILLS

NEWPORT BEACH

MIDDLETOWN

NEW

DALLAS

BUFFALO

MEMPHIS

ANTONIO

LA JOLLA :

•

I

HARTFORD

WESTWOOD
SPRINGFIELD

LOS ANGELES

MONTREAL

BRITAIN

HOUSTON

'

BASLE (Switzerland)

LA CROSSE

«

of these may
nt rrom, omers. .
ever become another International
Even though much of the com- Utilities, ;their common shares do
Pony's effort has been directed, seem to : possess somewhat more
up; to
now, to; expansion and substance and less market risk
assimilation of new properties, t'^an many issues you might cite
there has been an- interesting in- at,:;or below, the $10 level. Actual
crease in net from $60-000r for gas deliveries from big pipes can
year ended
Dec. 31,... 1952 to do all three of these a lot of good,
ance.v; While

none

I^on!'bf-ended Ju"e 4 As' long

;
*
out to 36e

,ls lasL Lgure works

0

tr.en

share

a

on

outstanding.
the

But

word

producers

Trans

The irancnise
largest

Brandon, second

announce

or

the

following changes in

our

Firm:

MR. THEODORE ! YANKAUER, Jr.

two

m^ght not be

Probably the biggest
Pacific' Petroleums which

is the is

We

talking about

as we're
the beneficiaries, a

amiss.

~

story here
the
coming

Cdnada Pipe Line.
to serve

the common,

big

with

tie-in

(Member New York Stock Exchange)

/

one

has

and

already advanced over $2%; roil¬
lion' to Westcoast Trainsmission,

WILLIAM

MR.

N.

MOXLEY

and should in due course receive
(Member American Stock Exchange)

1.000,000 shares of the hard-to-get
common.
Pacific Pete
— from

Westcoast

gas

to Westcoast,

have been admitted

as

General Partners

and

instances
instances,

most
most

au

MR. ALFRED

Lhised towns along the Toronto- there are also some oil producMontreal section of the forthcom- tions, and sales of natural gas by
might

prove

the

(1) Pacific Northwest is ready to

tential.

the

dog—it has

a

tail that wags
really big po-

a

filled,

you

be sure to
indirectly, by

in

Other gas producers in the Ca¬
nadian

the
ural

We take

MR.

pleasure in announcing that

ROBERT A.

has become

a

NUBEL

general partner in

our

firm.

already
These

Members ?{ew

52 WALL STREET

suppliers

lot

more

line




away,
In

and

and

drilling
gas, now

is
a

earlier

less

NEW YORK 5

days,

would

start to

cally,

the

gas

than two

years

a

town or city

blossom, economi¬

moment

reached out to it.

instances,

they can, by
probably find
that the West-

fine market assured.

Tor\ Stoc\ Exchange
~

Shearson, Hammill *% Co.

mentioned Inlandproducers have al¬

developed reserves on the
; basis of which the pipeline was
first deemed feasible.
They will

coast

ESTABLISHED 1889

Firm have become Limited Partners

ready

expanded

HALLE & STIEGLITZ

our

pipeline are Peace River Nat¬
Gas, also Canadian Atlantic

Gas.

a

KUGLER

west, who will deliver to

and,

be

A.

who heretofore have been General Partners

owning Pacific Pete.
January 1,1956

ROBERT

MR.

can

share in that equity

I

-

you are unable to get
subscription to Westcoast corn-

mon

E. THURBER

and

ing ^ine. This Lakeland deal products. If

lower cost natural gas, as soon as

-

Stock and Commodity Exchanges

harve

9n*ar*0' Great Northern has from being the largest Canadian
interest in Lakeland Natural shareholder in lYestcoast. As exdelivering Gas Company witn many fran- tras in the Pacific Pete picture,

Cascade

in

Ca-

ond other Leading

off

In

gas).

Present

up

firm.

our

Founded in 1902

rS early in their corporate life; Their
~ ™Elin|- shares have, obviously not yet at?! pn"f
J!g
tU*
tained any broad investor accept-

sale *of its

it

that of

Members New York Stock Exchange

itna thi

Manitoba branch of Trans Canada,

(where

been merged with

14 Wall Street

three

should thus benefit twice

South and

now

Shearson, Hammill 8 Co.

-

October,, and facilities will be
built to take gas-from the Alberta-

run

BROTHERS.

Springfield and Pittsfield, Massachusetts,

has

possible expansion in British Co-

Pipeline which will

Sumas, Washing-

of

The future* here is based
existing Pipelines, (2)
owned gas reserves estimated at

city in Manitoba, was granted last

Southeast from

the business of

TIFFT

rail

a

Today, in

the arrival of

pipeline to

serve a

a

line

Founded in 1902

Members New York Stock Exchange
and other

v.

.

p

■

■■

CHICAGO
SANTA

community

■.

BARBARA

HARTFORD
BUFFALO

NEW YORK

(.

MONTREAL
LA

DALLAS
LA

January 3, 1956

CROSSE

•

•

-

522 Fifth Avenue

■

LOS ANGELES
JOLLA

MIDDLETOWN

many

major

Principal Stock and Commodity Exchanges

14 Wall Street

NEW

BEVERLY

NEWPORT

BRITAIN

HOUSTON

40.

accord¬

appreciation in the issue

holding period.'

40 cent quarterly dis¬

a

at

$5
On

that

feature,

sonable rate of return

cash dividends begin¬

only

dilution,

for

has announced that it would cease

pay

least

hence.,

years

conversion

ingly,

debentures, the company

the

basis, it would appear, even

allowing

has made.

on

company

stock should sell at well

,

the route of the Pacific Northwest

ton

rate

average

share

a

project earnings

stock of the

of

seem rea¬

record that the company

been selected to present good^ex-

Pacific -Northwest

efficient-financing, engineering, accounting and ...man--

i 'I:

present

some

value

reputation borne out by the good

present quote is

th^ivinS public utility,, serving

in due course, be reached
gas
pipelines. -Accordingly,'

Cascade

into

the

mon listed on the Vancouver Stock

Lrv\^ ExchanSfe- The

would,,
*->by

in

dollar, etc., it would

sonable to

/J6*111? g3S *r0IM
Roycroft. field to towns in North
Aiberta'. There

Great Northern Gas Utili-

cost) -

area

a

growth potential.

spot-

held" back'

distribution;

by ?tne

with

unusual growth potential

up-to-now, of gas supply. Not the
pipelines themselves, but the expanding
horizons
of
profitable;

lief

decline

*

the

man-

larger population,

'^aS .a?°*Ser

fiSfX

,

Product, based

■*

the wings, to make their
Very im-

only

National

a

further

Security
I Like Best

:

further increase

a

greater productivity per

hour,

The

December.

price of the
!' •; ' \
.?'

present
:

Gross

the

pulsing' n e tv' fully unfolded in the prospectus number of British Columbia comiy Pacific bound' issued Dec. 21, 1953 in connection^unities including Prince George,
pipelines was with underwriting of $3,589,450 of yNamloops, Quesnel, Merritt and
'sketched
in units consisting of $50 face amount
Princeton.; By something more
Ira U. Cobleigh
this
column- of 5Vi% Interirti Notes, and one than a coincidence, the route of
recently share of common. 'The cbmmony the*Westcoast line runs through
("Pipes of Pan Canada," Dec.' 8,' has been selling, over the coun- all of these points.
Inland has
1955). 'Today- impelled partly by' ter, at around $10.
:
'
presently two small pipelines, one
logic,_ andpartly by letters reGet the nrosoectus
if Cascade 16^ miles long (Peace River Transquesting it, we shall touch upon interests
you, and you maybe able
^
three interesting companies which
to perceive, in outline, the nucleus
\;
(Grand Prairie
have been, as it were,
waiting in 0f a gas
-

in

at1.

Northern; Gas.

the

on

in

is, therefore, close to

Allowing for
on

ad-oofsibilitlta

are

5%

thing.

*

made

yield

stock.

(higher*

which -sell

Great

that motors, housing and.has constructed the necessary
appliances may not be able to ditional maihs, service lines, lat-»
f
prodigious erals, meters, etc.
462 • miles nf ^fIr1p?S\hi^

'K-vants-are solid

The

beneficiaries; of nat¬

say

1958

warrants

.

'

sustain^their .^recent

y pace

bursement

similar tonic industrial

a

The

debentures,,j

they

as

scares

Dec.

$3.50.-;; in

r.v

ing

4^%

in

fourfold.! effect.

around - 7(listed in Toronto)'
' v

i-

toast pjpehnes.

.

,

a

investor
is

prices after that). There's a $2.50!
preferred;; the common selling! Continued frontpage 2

...

A compressed article outlining

.

the
Gas

ural
gas
pipelines are myriad.
in
Canada. They sell around 103 and! Stockholders, too, can be benefici¬
carry warrants (per $1,000 bond); aries for gas is a many burnered

..

;;

the

are

"cum

01 West Coast Gas

for

Northern

There

7

SPRINGFIELD

SAN
BASLE

HILLS

BEACH

ANTONIO

(Switzerland)

PASADENA

WESTWOOD
PITTSFIELD

MEMPHIS

.

8

The Commercial and Financial Chronicle...

(64)

Gillette

Co.—Memorandum—Talmage

New York

&

Co.," Ill

cian such

Broadway

6, N. Y.

Investment

Services, Inc.—Revised study—New York
Corporation, 120 Broadway, New York 5, N. Y.

Hanseatic

a
successful issue against
George because of his association

Cemetery Land Share Certificates—Bulletin—Eisele
King, Libaire, Stout & Co., 50 Broadway, New York 4, N. Y.
Parking Inc.—Analysis—Blair F. Claybaugh &
Co., 1714 North Second Street, Harrisburg, Pa.
Rhodesian Selection Trust Ltd.
Report—Thomson & McKinnon, 11 Wall Street, New York 5, N. Y.

with Eisenhower.

&

To

Pigeon-Hole

mentioned will be pleased

understood that the firms
send interested

to

parties the following literature:

Riverside

Cement

Co,—New

views—Lerner

&

Co.,

10

White

Review—New booklet—Harris, Upham & Co.,
Broadway, New York 5, N. Y.

120

Energy

Atomic

Confusion—Quarterly

Fusion

mentary

thorium,

fusion,

on

report containing

uranium

and

&

Co.,

You

Post

ticular

reference

to

National

par¬

Tool

i

appraisal—Stroud
South Broad Street, Phila¬

Nomura
Securities Co., Ltd., 61 Broadway, New York 6, N. Y. Also
issue "Nomura's

same

of

Bank

Rates, and

Investors Beacon''

—

are

discus¬

and analyses of Mitsui Chemical Industry Co.,
Sumitomo Chemical Co., Ltd., Tokyo Gas Co., Ltd.,

Insurance

Stocks

Sixth

Montgomery

Street,

San

Francisco 6, Calif.
Railroad Outlook for 1956—Bulletin—Vilas &

Stocks

Jackson

for

Capital Appreciation in

&

Company, Limited,
Montreal, Que., Canada.
C:*

American Express

-

*

Hickey, 49 Wall

1956—Bulletin—L.

St.

132

James

S.

Street, West,

*

Atomics,

F.

Reilly

&

Co.,

Inc.,

42

Broadway, New York 4, N. Y.
Bendix
way,

a

tax

Sen.

George

Herman,

son,

it will. -This

favors

it;
Byrd | is

Sen.

is

Carlisle

Here

Bargeron

senhower.

prediction.

a

would

Byrd

won't

will

be

prevail and
slightest ruf¬

the

fled feelings between the two
This
you

situation

may

is

the

new

is not.

Senator Byrd knows
why Senator George has

posed

a

political
a

reduction and it is
reduction

that

$100 increase in

a

he

think

would

distinct

asset

an

or

schools.

unpopular

very

of

pro¬

and

the

his

the

was

this

tion,

of

to

push his proposal.

Indeed, he

The -Eisenhower

will want George to make as much

has

political capital

Roosevelt

in

the

as possible.
But
end, Byrd will very likely

posals and he is the Chairman of

factor, of

or

Corporation—Bulletin—Peter

P. McDermott & Co.,

Flying

Tiger

Line,

[:

r

.

,

,

House

Inc.—Bulletin—$2.00

per

copy—John

,
•

| General
Brooks

are

I

New

York.

can

expect

will

be

General

Dynamics—Analysis—Goodbody

accomplish.

Street, New York 17, N. Y.

a

carnival

And

Bankst Brokers

It

;

/

&

Co.

and

Wurts,

Janney

—

Dulles

&

Co.

under the

of

Janney Dulles & Co., Inc.
membership in the
New York and
Philadelphia-Bal¬
timore [ Stock Exchanges.
*
The firm holds

Until the

Harold

B.

.Smith,

Manager

of

Pershing

Company's Unlisted Department, has been

6,'

«

:&

delphia

&

several

no

visitors

are

larger Phila¬
completed

are

15)

in

the

Penn National Bank

Central-

Building, the

present offices at both 1529 Wal¬
nut

Mr. Smith will be confined for

weeks, ond while

and

new

quarters
Feb.

(about
re-

ported ill in Doctor's Hospital, Freeport, Long

Island, N. Y.

r

Street

and

1416

Chestnut St.

will be retained.

;

'

al-

T. E. Brittingham Opens

lowed at present, we are sure he would
appre-

-'-ciate^ receiving cards from his friends. ""
&r '•!>
- V-■

jj-

Co., 60 East 42nd

Continued

Harold B. Smith

fjomma jfoctwciltes

& Dealers:

T "

E.
on

page

~TSpecial t6

The'Financial

46

DEKNMB1E MARKETS

in

Member

—

]

■

Thomas

Brittingham, Jr., is engaging insecurities

a

business from offices

Building.

Forms Central Sees. Co.

•

Joseph Shernov. is engaging in
securities

a

N.A.S.D.

at

135

Broker and Dealer

Recent New Issues

Chronicle),

WILMINGTON, Del.

■'

©o.,

Dependable Markets

there.

the racial controversy will
matter of

in the Delaware Trust

For

you

up

probably hold it in the
housing and education.

_

name

-

&

the

for reelection,

have been consolidated

.

Webber, Jackson
Curtis, 626 South "Spring Street; Los
Angeles 14, Calif,

and,

of

Formed in Phila.

W

; General' Controls Co;—Analysis—Paine,

taxes

members

to the 64 Senators not
up for reelection to hold the fort.

44

-

up

ever

less

all

PHILADELPHIA, Pa.

H.

American Oil Company of Texas—Analysis—P
&;Co., Incorpgrqted, 115 Broadway, New York

and

as

even

NSTA

,

Lewis & Co., 63 Wall
Street,,New York 5, N. Y..

ac¬

Janney Dalles & Co.

Electric—Bulletin—Van Alstyne, Noel & Co., 52 Wall

Street, New York 5, N. Y.

the

is

ap-

Street, New York 5, N'. Yi:''~ y

Emerson

he

generosity
knowledge of economics

inasmuch

Bymart-Tintair, Inc.—Report—General
Investing Corporation,
80 Wall
Street, New York 5, N. Y.;
v
Wall

make
him in

see

to be explained.

Pabco Products, Inc.

Clevite

reelection

must

to

that

propriations

,

Blaw-Bnox Company—Review—Sutro Bros. &
Co., 120 Broadwav, New York 5, N. Y. Also available is a
bulletin on

Building, Houston 2, Texas.

But

But the picture of the
Congres¬
sional session is that those
up for
reelection will be for more

Aviation—Bulletin—J. R. Williston & Co., 115 Broad¬
New York 6, N. Y.
:

Brewster Bartle Drilling
Co.—Memorandum—Rowles, Winston
& Co., City National Bank

the

him.

for

up

it

which

to

the

is yet

course.

The feeling in most of the South
today is such thpt an able politi-

is

and

except

with his

several

could

he

poli¬

this additional Federal

widely

Administration

Truman

perfection

attribute

the

to

from

for Federal aid to education. Just
how the Senator can square all of

because

accomplished what not

detachment

more
money for homes
oldsters, more" money for
Federal aid in medicine, more
money for Federal housing, money

So Byrd won't worry or be
southern states in the 1952 Presi¬
the slightest bit annoyed when his.
dential election. Eisenhower's
old friend takes the Senate floor
was a

truth, schooled

ator wants

tions.

popularity

Illi¬

pursuing
give-aways to the needy which is
up the "liberals' " alley. The Sen¬

support of the old FEPC
figured tremendously in
loss

of

subscribed

never

"liberals" blush

this

Democrats'

the

the

or

.anyway,
this year

for

South

after

"liberals"

not.

Truman

in

very

have

tics

the one
that gave the coup
d'grace to Georgia's opposition to
integration of the races in the pub¬

pro¬

the

as

Senator's

is

very, lic

wet,

economics.
I

Wait

asset.

wringing

Douglas

in

The Eisenhower Administration

ses¬

exemp¬

You

him

widely hailed

searcher

madge intends to give to it proves

sion of Congress. Senator George
is up for reelection; Senator Byrd
well

>

leadership in foreign

a

get

by the "lib¬
best that can
be expected in the
way of Senator.
Completely detached from poli¬
tics, these "liberals" say, solely a

runs

it is generally ex¬

as

make

erals"

how the twist which Tal¬

see

it to be

men.

key to what

a

expect of

and

be

to

decision this time. He will have to.
Take Senator

nois,

affairs has brought George in close
and intimate association with Ei¬

sit tight on any tRx reduction pro¬

Inc.—Circular—J.

as

pected he will, demagoguery will

■

Company—Analysis—Ira Haupt & Co., Ill

Broadway, Ne\y York 6, N. Y.
Basic

Talmadge's

the

of

;

he is and if old Gene

run
rout.
Indeed, George's lead¬
ership in foreign affairs, for which
his greatness is now being pro¬
claimed far and wide, will be a
chief
issue
Talmadge will
use
against him, or rather a twist on

to

come

poses,

Street, New York 5, N. Y.
Ten

as

had

his

will be talking that
way about the
Supreme Court's anti-segregation

to be pursuing this

had

there

Pacific Coast Storm—And its effect on West Coast securities—
Bulletin—Dean Witter & Co., 45

For George

against him

Senator

used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc., 46 Front Street, New
York 4, N. Y. '
\ ^

must go.

advanced

caption

Over-the-Counter Index—Folder

com¬

from

Senator

would this legislation be imposed
upon
the State of Georgia.
He

through which any such proposals

that these long
time friends

Jones Averages and the 35 over-the-counter industrial stocks
I

with

—

Municipal Bond Market—Bulletin—Park, Ryan, Inc., 70 Pine
Street, New York 5, N. Y.

Dow-

Committee

minish his stature in the slightest.

matter

.

Finance

He represents a state that is not

and

trying to purge

was

The

spiration in the hot Georgia clime

Senate

George

against.

showing an up-to-date
parison between the listed industrial stocks used in the

the

Senators

important

of

Street, Boston 9, Mass.

George's

high plateau of
statesmanship
and
deplore
the
anti-lynching bill. Over his dead
body, he declared until the per¬

obvious political tactic doesn't di¬

—

reduction.

edition

special bulletin
entitled "12 Reasons for Investing in Life Insurance Stocks"
—$1.00 per copy—J. H. Goddard & Co., Inc., 85 Devonshire
—

men

ways—on

and Tokyo Electric Power Co., Ltd.

Life

weekend

parting of the

analysis of Business Results and

Outlook,

Ltd.,

g

the

111| Broadway, New York 7, N. Y.
Analysis

n

Byrd

Investment Opportunities in Japan—Circular—Yamaichi Secu¬

—

Year's

New

two of the Senate's most outstand-

Equipment Trust Certificates—Semi-annual

rities Co., Ltd.,

the

photographs appeared in news¬
papers throughout the country of

Term Investment—List of securities
—Hirsch & Co., 655 Madison Avenue, New York, N. Y.

sions

down

would

Over

Dividend Payers for Lpng

Japanese-U. S. Taxation Conventions

him,

George.

By CARLISLE BARGERON

Earnings—Bulletin—Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.

123

of

the

of

some

man

associated with him in his

was

around

Washington
Ahead of the News

York 4, N. Y.

in the

I

From

Bank

Company, Incorporated,
delphia 9, Pa.

a

campaign when Roosevelt for
no
earthly reason except to sat¬
isfy
the
young
New
Dealers

Milling—Dreyfus and Co., 50 Broadway, New

&

hear

that

in the back woods.

115

com¬

Machine

the

high caliber will be forced to make

Co.—Memorandum—Goodbody

oversupply—

Stocks—Analysis with

Acme, Monarch

American

follow

1938

30, 1955—Atomic Development Securities Co., Inc., 1033 Thir¬
tieth Street, N. W., Washington 7, D. C.

and Cincinnati

Oil

should

speeches

Broadway, New York 6, N. Y.

atomic map also available—both contain portfolio as of Sept.

Automation and the Machine Tool

Eagle

should

you

campaign in Georgia, assuming it
is to be Talmadge versus George.

Office Square, Boston 9, Mass.

Atomic

fully understand

politics

—

It is

to

has

Kensico

Recommendations & Literature

Herrpan Talmadge is
be, considers that he

as

admitted

Investors Diversified

[Dealer-Broker

Thursday, January 5, 1956

business from offices

Broadway, New York City,

under

the

firm

name

of

Central

Securities Co.

Material and Consultation
on

2400

Members: N.

74

Y.

Security Dealers Association

man

NY

Trinity Place, New York 6, N. Y.




ATLANTA, Ga.—Bruns, Norde¬

without obligation

•

HA 2*

Bruns Nordeman Branch

Japanese Stocks and Bonds

Troster, Singer & Co.
1.

376

61

Broadway, New York 6, N. Y.
Tel.:

BOwling
Head

Green

Office

9-0186

Tokyo

&

York

OEMPSEV-TEffilH MO

_~opened

Co., members of the New
Stock
a

Exchange,

branch

Walton Building.

office
_

in

have
the

Number 5496... The Commercial and Financial Chronicle

Volume 183

(65).

In iHvmnrtam

-

*

v

■

■

}'

'.V'

•

'

•

•

:

•

*

up

a

MAN!"

;

s

ity, it needs
Dr. Aaron M. Sakolski, one of the most

beloved and

-during its 116 years of existence, was fatally injured in
'

while

en

route to his country

home in

Riegelsville, Pennsylvania, last Thursday,

^ December 29.

A sister, Miss

kolski, survives.
'

To

Sakolski

Dr.

whom

rary
;

all

us

and

a

was

colleague.

varied rather than

a

-

ing ' and

•

political
about

a

address,

the

out

for

will

the

The

price and ^

of

of

rest

interesting conversationalist..-He

A. M. Sakolski

a

retrospective mind and

hopeful outlook

on

sense

of

thinker

the

word

both

a

man.

philosopher

a

He

gentleman and

was

in every

an

altruistic;

throughout his editorial career.-

Few

in and out of Wall Street possess

men

satility of

the

ver¬

Dr. Sakolski who was born in Baltimore,

our

May 12, 1880. He

was

r

m

a

the recipient of a Ph. B. and Ph. D.

cussion

degree from Syracuse University and Johns Hopkins.
was a

since 1905, instructor in

finance at New York University

from 1910-24, served

Valuation expert for the D. & H-

rection

see

Dr.

B.

O.

matter

of

Paine, Webber & Co. (now Paine, Webber, Jackson &

controls

will

elimination

College of the City of New York until 1947, and fi¬

nally assistant to the Editor of the Financial Chronicle
'

:

Besides his editorial

I

gifts, Dr. Sakolski

was

the author

books, which included a wide range of

of'a number of

of

Walter E.
v

;

Entrance

to

Principal Trades

(with

Weyl), 1903;

American Railroad

Economics, 1913;

The

of Bond Investment, 1921;

Analysis of Financial Statements, 1923;

The Evolution
•

of American Economic Life, 1935.,

Great American Land

are

to be restored.

well

Financial

Bubble

(with Myron L.

Development, 1936.

Chronicle

needs

men

valiant soul at

a

to

appears

SHARES OF

the

of

90%

Sec¬

Wc have

that

the

as

our

country

seem

a

New Mexico

wheat state such

*An

livestock
may

state

find it

be for flexible supports
Republican Senator from a

side of

an

as

.

DO

.

YOU KNOW

THAT:—

worth*

$15,280.00

is

now

44

44

36,110.00

56,230.00
"

"

65,210.00

37,920.00

Southland Life

"

"

"

"

9,870.00

West Coast Life

"

"

57,600.00

which contains

which

we

believe

This Bulletin will
mutual fund shares and

acceptance

specific suggestions

are,

on

stocks

attractive for investment today.

be of particular interest to holders of
to investors who are considering the

of profits in cyclical

or

speculative stocks and the

reemployment of funds in investment-grade issues.
A copy

of this bulletin will be mailed for $1.00.
Please

use

below.

coupon

J. H. GODDARD &

CO., INC.

ESTABLISHED 1925

Members Boston Stock
85 DEVONSHIRE STREET,

Exchange

extension

are

of

on

90%

the

by Prof. Jesness at the
Agricultural Credit Conference
sponsored by the American Bankers As¬
111.,

J. H. GODDARD & CO.# INC.
85 Devonshire

Please mail

a

Dec. 3,

1955.

FC

Street, Boston 9, Mass.
copy

of

your

Revised Edition of Special Bulletin on Life

Insurance Stocks. Enclosed is $1.00.

Name,

sup-

address

Chicago,

BOSTON 9, MASS.

North Dakota.

leaders

National

sociation,

.

very

from

labor

PROFIT POTENTIAL OF

prepared a SIXTH and REVISED EDITION
of our Special Bulletin entitled

to favor

to

a

20

"12 REASONS FOR INVESTING IN LIFE INSURANCE STOCKS"

question,

easier

page

Travelers

growers,

strongly.
consequently, is
not one on which Republicans and
Democrats, farmers and city
dwellers, are nicely lined up on
opposite sides. A Democratic
program

on

subject, of

Tobacco

the other hand,

promise

♦As of December 15,1955

against--supports

run

controls.

and

Continued

Lincoln Nat'l

IN THE

on

of Agriculture,

can

have been

years

retary

Senator

staff believe
time when

of Aaron Sakolski's calibre.




program

The

discretion

the

and

who

Continental

us

"basic"

Some
a

support

the

put
spot

see

.

| There will be a plentiful sup¬
ply of farm bills in the legislative
hopper this session. Some of them
may be tied in with a return to
rigid supports with the idea of
making the combination so ap¬
pealing that the President will
be hard put to it to exercise his

<4

JAN. 1,1943

or

As most of

within

than

and

t

only the six socrops—wheat, cot¬
ton, corn, tobacco, rice, and pea¬
nuts. Specified supports or ranges
apply to 'a few other lines such
as dairy products, sugar and wool.
Supports .on other products are

such

world has lost

o u

over

into effect

all-inclusive.

The

The Editor and Publisher and members of the Com¬

mercial

the

know,

The

most.

Cenn. General

of parity supports

supports in recent

the

Hoch) 1932; and
American Economic

go

rigid 90%

on

Contributor to American Business Practice, 1931;
The

b

to need and the availabil¬
ity of funds. The battle, hence,
is not one in which all agriculture
is united. For example, the senti¬
ment among western cattle men

Principles of Investment (with Myron L. Hoch) 1925;

|

permitted to

the

combat to

the

Aetna Life

<1000

course,

Railroad Securities, 1921;
Elements

EXAMPLE

FOP

whether the flexible supports pro¬
vided
under
existing law shall

called

of American Trade Unions, 1906;

Condition

a

primarily

level, not their retention or
Specifically, it is over

is., not

a

LIFE INSURANCE STOCKS

ON

abolition.

mandatory

topics, including:
Finances

current' argument

supports, is

expected .to lead it to
with various other pro¬

Only ONE MAN in 1000...

INVESTED

Argument Relates to Level of
Price Supports

be

since 1944.

up

posals to alleviate farm ills. The
political arena seems to be set for

probably

to

the

sharp re¬

or

siz.ed tongue in cheek.

their

is

come

KNOWS THE INVESTMENT

be

duction ip price supports in 1956
certainly would do so with a manr-

The

gram

the

saw

.

tion to continue the flexible pro¬

guessing runs in the di¬
expecting the Senate

on

as¬

determination of the Administra¬

re¬

strategy.

opportunity

other

are

to

Anyone who would

pedaled.

price

¬

of

an

there

degree

forecast in the face of this situa¬

1917-1919, becoming statistician and economist

Curtis), New York City, 1922-31; Assistant Professor in
the

If

The

difficult

too

"

for

override.

outcome, the

Jesness

forecast.

a

threats of

an

peo

farmer's

observers

political

Administration

not

the

the

;

is assured because Democrats will

controlled, are income limiters.
That gives grounds for expecting
that promises for more and better
supports .will be rather general,

tion

Some

as

present

is

Railroad 1914-1917; examiner of the Federal Trade Com¬
mission

is

city

many

of

to act and that passage

is
something else.
Price
supports are viewed as
income
help
while
production
controls, at least for the one who

soft

financial statistician and economist

as a

delay

implies

foresee;

while

Dr. Sakolski

Senate.
■;

dis¬

direction

;'legislative

ing the last session. The question
net; brought to a vote in the

hay¬

this

Besides,
aware

win votes

may

labor's

was

for

political

for

life besides being

and scholar who loved his fellow

a

are

;

,

making. The
topic assigned

interesting personality. He was endowed
had

f

e

problem
"natural"

lovable person, a good soul and an

wonderful

to

the

on production and
accumulations.
Realiza¬
tion of this aspect of the problem
is ; showing
up
with increasing
frequency in suggestions that the
program
needs revamping.
The

store the 90% level on basics dur¬

is
booming make

exemplified in his lifetime the elements

a

be

surplus

provide the remedy.
The House took action to

the

t h

with

mustered

been its effect

levels

the'

effacement, gifted with a gentle manner,

a

should

votes

expenditure which', will
permit tax reduction while bring¬
ing the budget into balance also
has a good deal of political
strength. One of the penalties of
the
price support program has

plight and some of them take for
granted that the higher support

when

most

of

some

ple

'diffi¬

time

bear-;
example of self-

hope that this

programs.

turn.

and

J of

on

'

call

economy

an

fixed

November,
now
10 months away, when the

are

of ag¬
riculture' at a

modest in his

an

be

this

enough

reduced

blanket solution. Discusses

ports, perhaps not entirely with¬

culties

,

was

of

seekers

next-

income

friend

a

the

office

voters

staff,

of

eyes

Tuesday
1

brilliant contempo¬

a

-

Dr. Sakolski

1

Chronicle

considered both

we

v

v

the

on

The

Esther Sa¬

,1

can

that

and

axe

that

of the 1956 picture.
The
voters clearly are not unmindful
of the investment the public has
in the some $7 bipion invested
in stocks and of the annual cost
of the program.
The urge for

Fertility Bank" proposal. Expresses doubt regarding
figures concerning the disparities of farm and non-farm
income, and lays much of existing trouble to small individual
farm holdings. Calls for statesmanship and not political expediency in solving the problem.

respected members of the Chronicle's editorial* echelon
auto accident

veto

unlikely

pects

the "Soil

an

the

feel

is

However,

surplus problem corffes partly from a carry-over of war expan¬
sion, and partly from the increase in agricultural productivity.
Holds, since the situation varies from commodity to commod¬

•

And say to all the world,
was

be

can

battle lines will be drawn.

production controls in agriculture, and the problems arising
from the general program, Prof. Jesugss finds that our farm

.

might stand

This

states

T

After discussing the legislation relating to price supports and

elements

him,.that Nature

*

Republicans

some

farm

Aspects of the 1956 Picture

'V •'

-5" "•

"His life was gentle; and the
So mixed in

will

University of Minnesota

1880—1955

.

•

'

certain

it

By O. B. JESNESS*

Head, Department of Agricultural Economics

because

expected to help the move along.
The guess then is that the bill

Production Controls in 19S6

M. SAKOLSKI

AARON

also
from

9

Address.
(Please print)

10

The Commercial and Financial Chronicle

(66)

ward

Long-Range Implications of
The Social Security Program
America

official views social security as a major
life insurance industry and the national economy.

Favors study depicting

point where continued even-numbered

Raises questions
regarding impact of social security with respect to: (1) impair¬
inflationary

of investment incentives; (2)

ment

These

cial

a

so¬

the

can

people and the Ameri¬

of life?

way

have been groping

us

formulation

is of

been searching for a way in

this

of

course

terest

to

it

us

in the life in¬

field.

surance

In fact, I think
I can
safely

R. D.

in looking
ahead, that tnere

Murphy

say,

is

domestic

no

public issue of greater long-range
influence

insurance

life

on

than

is governmental social security. I
am not emphasizing simply what

think of

may

influence

rather I

as

competi¬

a

business,
thinking of the effect

am

on

live

within which

all

we

philosophy

regarding

extent

of

the

nature

governmental

re¬

sponsibility for the aged and other
special categories of our people.
I

think, however, I can" state

I to

3~roposition

which

here will agree.
whether

curity

one

everyone

It is simply this:

governmental

is

social,

se¬

good thing or a bad
thing, whether it has been devela

cped properly
cannot

increases

out

in

or

,

benefits

the

in

law

sooner

or

where

oint

reaching a
security beharmful
to
the

cial

Yet

this

cial

So do

business

Let

illustrate

me

very

we

the

in

are

tions,
to

are

are

still kept substantially

"i^elow

the

while

which

taxes

cf

the

those

will

ulti-

elderly be in favor

increase?

Why shouldn't
looking forward to re¬

tirement within

change?

pounger

ally

pay,

axes

little

do

the

to

the

finance

productive

investments necessary to maintain

increasing

continually

national

&

Webster

Securities

held

well

below

Out of

such

cannot

the
situ¬

expect popular

and

beyond—such
for

sequences

our

the

time

each

Association

York City, Dec.

seems

to

be two

to

one

name

country;

three decades

or

York

land,

joined

Kenneth

Manager;
Assistant

K.

Mackey,
of
Manager
Municipal
Depart¬
ment; and Longley G. Walker,
Assistant
Manager -of Research
and Analysis. Stuart MacR. Wyeth
in charge of the firm's Philadel¬

Alexander,
Mr.

sociate

New

York

Stock

a

few

learn

we

from

problems
British?

the

us

to

ducing

we

For

Case.

Yale

What

can

we

difficulties

G.

Russell have been

the firm

and

instance, is it wise

be

thinking about
social

age

are

security

No.dc man

the

here,

finding

when
it

the

necessary

1610

tne

This announcement is neither

M.

that

firm.

Chester

as

offer to sell

Roberts

nor a

&

ST.

Minn.

PAUL,

Wood

Co.,

has

Harold

—

Charles T.

joined

the

Wood

&

E.

First National Bank

solicitation of

Shares. The offer is made only

an

offer to buy any of these

by the Prospectus.

Outboard, Marine & Manufacturing

Company

liberalized

is

expanded, ' these

or

economist

(83l/3£ Par

Value)

tremendous

magnified.

I do not profess to be
omist, and I cannot tell
an

Common Stock

And

economy.

would

econ¬

an

you

how

The several Underwriters

offering 100,000 of these shares which they
stockholders. The Company will re-

have purchased from two selling

ceive

about

go

are

none

I

But
be

least

at

can

illustrative

questions

of the proceeds from the sale of such shares.

explored

a

Share

that

and

—

Offering Price $42V2

list

thing,

one

we

of

America,

14, 1955.




New

know

an¬

The

that

Company has issued rights, evidenced by subscription warrants,

to subscribe

OASI

system,

provisions

for

and

the

future

productiveness

of

American

of

Will tne

economy.

increasing benefit disbursements,
now foreseeable, make inroads on
the living standards of self-sup¬
porting people, or can such in¬
roads
in

be

prevented

national

i'or 213,845 of these shares to the holders of its Common

Stock, which rights will expire at 3:30 P.M., Eastern Standard Time

retirement

January 23, 1956,

Subscription Price to Stockholders $37 ft
The

several

Underwriters

may

a

.

Shire

offer shares of Common Stock, in

addition to the 100,000 share offering described above, at prices not less
than the Subscription Price set forth above {less, in the case of sales to

dealers, the concessions allowed to dealers) and not more than either
the last sale or current offering price on the New York Stock Exchange,
whichever is greater, plus an amount equal to the applicable New York

increases

by

productivity?

fully set forth in the Prospectus.

as more

Slock Exchange commission.

In fact,

to maintain incentives for whole¬

hearted
not

productive
effort,
will
gradual increases in the living

standards

of

the

self-supporting

Copies of the Prospectus

be needed?

From

ments
and

standpoint, gains
productivity must stem

from
in

continuing
productive

new

equipment.
be needed

What
to

avenue

such

a

What will be

to

MORGAN STANLEY & CO.
I

•

'

UNION SECURITIES CORPORATION

expanding
explore

LEHMAN BROTHERS

BLYTH &

CO., INC.

MERRILL LYNCH, PIERCE, FENNER & BEANE

is

the

inflationary or deflationary
implications of social security. For
social
security provisions to be
most, effective, should not the ben¬
have

of the respective States.

plants

social security on such incentives?

Another

be obtained from only such of the under¬

may

legally offer these Shares in compliance with

invest¬

incentives

attract

rapidly

as may

the securities laws

another

in national

largely

signed

SMITH, BARNEY & CO.
k.

•

January 5, 1953.

WEEKS

•

PAINE, WEBBER, JACKSON & CURTIS

stable

purchasing
power?
What level of benefits,
and
what
method
of
financing
them, would be most helpful to¬

HORNBLOWER &
.

DEAN WITTER &

staff

of

Company,
Buiding.

i313,845 Shares

so¬

Harris

general partner in
Mr. Harris was previ¬
a

With Harold E. Wood Co.

Washington Avenue.

an

%

Fla.—Leo Co¬

staff

Shelley,

Harvard

ously with Reynolds & Co.

re¬

of

from

of Baxter, Williams

announce

(Special to The Financial Chronicle)

MIAMI BEACH,

graduated from

and

Baxter, Williams & Co., 70 Pine
Street, New York City, members
of the Midwest Stock Exchange,

to

William Denmark,
Meyer
Goldfield, Edward Levenson and
Lawrence Lipkin have joined the

re¬

was

1949

has become

Biunj,

With

the

profit from their

He

in

M. G. Harris Partner

Exchange,

admitted

Uamel P. Davison

,

genbral partners.

as

the

Law School in 1952.

wan,

the

tirement
British

at least in quite

besetting

now

Can

mistakes?
for

are,

respects.

in

firm of White

New York City, members of

way,

the

New York law

Stern, Lauer & Co., 120 Broad¬
the

Davison

Morgan bank
recently after
being an As¬

&

an

along the social security iar, Leon M. Yeager and Roland

road than

by
C.

Chairman.

the

have announced that Peter E. Fol¬

further

was

announced

following assistant
vice-presidents—Edward W. Hol¬

experience of foreign systems.

England,

Street,

ment

undertaking

an

law

consequences are

efits

address

by Mr. Murphy be¬
fore the 49th Annual Meeting of the Life
Insurance

the

Wall
New

Henry

Sales

,

& Co. In¬

Corporation, 90 Broad Street, New
City, announces the appoint¬

Assistant

been

Secretary

Mor-

City, it

York

of

has

Assistant

corporated, 23

Appoinls Officers
Stone

P.

Davison

an

is bound to have tremendous con¬

flow of investment?
the effect of

we

an

and

as

they will eventu¬
long as their current

appreciation of the whole prob3eift; and we can 'expect unin¬
formed political pressure for re¬
curring liberalizations of benefits.
•From

undertaking

an

taxes

are

J.

gan

Stone & Webster

the American economy.

will

i.ltimate level?
ations

few years favor

a

How

active workers realize the

ltimate

in

in all its ramifica¬
with its commitments

on

be necessary to support
uch increased benefits.
Why

nil

i

in

savings—element

security, will depend in large part

lately

the

appointed

purposes.

study

rapidly mounting benefits,
aggregate increasing in¬
definitely into the next century

on

pro¬

.wages

houldn't

broad

the

other

increase in benefits to the

rate

Obviously,

pay

Federal

With

them

the

pension

operate. Of what eco¬
significance is the advance

on

'

to

i

may

if at all, only

the future burdensomeness of the

a

confused

now.

elderly, larger payments
vided

which

Questions Needing Answers

we

have

Confused Situation

rituation

i

future.

Morgan & Go.

P.

security,

witn

the

A

no

vast

so

For

people.

i

plans

private

States has

should

]:eculiar obligation to our fellow
citizens to bring out all available
facts and lay them before
the

e

near

Daniel

swered, if at all possible.

sibility in this matter.

.

in

the

of

approached so¬
cial
security
with the aim
of
measuring its long-range conse¬

Perhaps it goes without saying

in

far,

United

that Congress has a great respon¬
We

have

and

humanitarian

and

So

some

American people.

11.

of

through a research study cf trie
right sort. Now I know there have
been a great many studies of so¬
cial security and related programs
in the past two decades, both gov¬
ernmental and private. But these
studies have mainly focused on
tne question of how best to recast
the technical provisions of the So¬
cial Security Act in order that it
may most effectively serve its so¬

security.

later

social

clearly

i omes

r

the

J. P.

exploratory stuay

studying the economics of social

even-numbered year with¬

every

3

improperly, we
adopting substantial

go on

question,

be answered,

quences on

produce.

and

We probably do not all approach'
this subject with the same basic
and

general

can

our

cf such governmental measure on
the economy

correct

a

it might be answered.

in¬
and

concern

3

determinant

a

which

area'

cantly

and hence tne

people as a
whole, and it

must

is

ing of private plans help signifi¬

objective

any

toward

particular

i

there

Is

Several of

ican

e r

tive

its

on

of social security will be avaLabie

in

such private plans? Will tne fund¬

observations suggest this

American

maj$r is¬
for

come

pro¬

popula¬

to inflation?

funding—or

consequences;

American economy,

security

Am

the

From

standpoint,

sue

in

way to pin down the approximate output?
„■
J
phia office was also made
point at which social security be¬
As a final illustration of what a assistant vice-president.
gins to go beyond its range of
study of social security economics
possible usefulness and demon¬
Stern, Lauer Partners
strably begins to damage the might look into, let me mention'

long-range

a

of

expense

elements

question:

Act.

is

Research

ductive

of

the benefits which tne
nation is providing out of taxa¬
tion under the Social Security
larly

eficiaries, at tne

Thursday, January 5, 1956

Davison Appointed by

therq?

ED.

production to social security ben¬

nomic

(3) burden on national productivity; and (4) inter-relationship of private pension plans and savings.
Today I wish to speak particu¬

national

consider increasing the " retire¬

to

ment age

NOTE—The final report of
The National Bureau cf Economic

benefits

benefit increases might be harmful.

year

of

general
needing exploration is
the interrelationships among oldage assistance, the OASI system,
and private pension plans. By and
large, the level of social security

Prominent life company
on

snkre

proportionate

problem

President, Life Insurance Association of

influence

prices?

Still another facet of the

Society

States

United

stable

attempt to give a dis¬

or

Equitable Life Assurance
of the

an

tion, lead

By RAY D. MURPHY*

President, The

maintaining

Would

...

CO.

Number 5496

Volume 183

The Commercial and Financial Chronicle

...

much so as (31), Phelps Dodge (58), Inspiramind, I shall tion Copper (58), Boeing Airpick as favorites five groups. Two plane
(80),
General
Precision
of these, the steels and the
copj^qU|pmen^. ^g^ Deere (35), J. I.
pers
•s,
have been market leaders A
mo1/n
■
Case (18V2), and National Dis¬
for the past few months, and I
believe that they will continue to tillers (211/2).

By BRADBURY K. THURLOW
;

be

recent

developments which have influenced
particularly the "blue chip" issues. Says

a

ability to prolong a boom and avoid
depression, and holds tkat, paradoxically, this may lead to

the bull market's ultimate

collapse.

stocks

as

Mentions five

strict

business

my

a

which

to

appear
a

to

those observations of

summary cf

others

forecasts

more

Such

less

up

t

i

laissez-faire

1920's.

sion.

In my

opinion,

Paradoxically,

ultimate

B. K. Thurlow

bull
<

its

ability

same

better

than

advice

by A. Wilfred May in

Commercial

Financial

and

Chronicle" of Dec. 8: "The rate at
which

the

earnings

will

market

is

...

capitalize

question for the

a

crowd psychiatrist—not the econo¬
mist

business forecaster." Stock

or

prices

high historically,

are

pro¬

pelled by the psychology of busi¬
confidence

ness

faith

and

in

the

future, but supported not so much
through speculative activity as by
the negative influence of a puni¬
tive

capital gains tax which dis¬

collapse

market.

of

For

ful

investments

this the growing

now

in

own

all

the

and

stocks

for

account

12V2%

of

outstanding
13%

about

of

on the New
Exchange), and one
picture which is as easy to

daily volume

average

York
has

influence of in¬
market
(they

estimated

an

common

Stock

a

recognize

it

as

difficult

is

to

The

current high valuation of
chips" approaching records

set

in

tious

1929

has

led

investor to

many

draw

individous
been

even

one

need

with

the

the |

orgy.

late
But

back to the
in question

only look

of

records

dire sort;

comparisons have

made

of that famous

stages

time

(we suggest Galbraith's excellent

"The Stock

study:

—1929"

how

as

a

dead

Market Crash
starter)

good

speculation

to

still

see

is.

Much of the apparent

disparity in
the price of a few leading stocks
has been brought about by the re¬
luctance or timidity of the large
institutional investors in buying
anything except for the "Favorite
Fifty."
If

one

looks at

European mar¬

kets, however, particularly those
of France and Switzerland, where
this institutional "scarcity factor"
has even greater influence, one
sees

the

2%

basis, or
even higher for over a year.
The
prevalence of the same condition
abroad

on

a

at

1400

business.

ties

Second

Mr.

Hollander

previously with Ernest Kosek &

H. L. Jamieson

Co., and A. G. Heim Co.

Co., Inc.

ofNew York
Head

obviously

commitments

yield

cannot
in

justify

American

high priced issues, particularly on
a value basis, but it suggests that
the situation may be more funda¬
mental and permanent than some

people think It is indeed difficult




the

66 Overseas Branches,

Greater New York

Offices, and Affiliates

risk, what

no

(or political) justifi¬

Cash, Gold

the

to

problem

of

market

outlook

during the next few months. Since1
1953

our

have

been

market

own

we

stocks.

Every

time

seemed

about to

the

market

reactionary,
the

time

it

to

dull,

or

and

every

corrected

itself,

take

U. S. Government Obligations
_

State

makes
tions

of

600

Dow-Jones

rent

rise

will

when

ing

is

tution

the

in

hopeful that the

speculative
shall have

higher

Industrials.

still

am

and

in

end

so

that

Loans

of know¬

to

sell;

the

stock

charitable

insti¬

and

but
not

may

ances and
t

541,346,809

.

Real Estate Loans

.....

and

Securities

Customer's' Liability
Acceptances

Stock

of

...

j

in

ideas

to

Transit

.'

with

.

45,121,014

18,354,147

21,909,500

.

for:

Other

and

.

25,231,364

1, 1955.

216,700

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

34,027,837

Unearned Income

.

.

.

.

Payments Under Agreement of

42,126,245

.

1

Merger Dated March

"15,000,000

Dividend

7,000,000

....

.♦.

Portfolio

Foreign Central Banks

Capital
.

$63,475,161

aropdt

Unearned Discount

30,218,301

35,961,202

...

Branches

Ofher Assets

300,000,000
60,006,869

Surplus
Undivided Profits

4,887,952

Total

6,000,000
$200,000,000

.....

{10,000,000 Shares—$20 Par)

11,008,921

.

.

Figures of Overseas Eranches

are as

560,006,869
$7 001,296,521

Total

$7,001,296,521

of December 23.

pledged
permitted by law.

$453 849,290 cf United States Government Obligations and $22,571,2(0 of other assets are
to secure

Public and Trust Deposits and for other purposes

required

or

member federal deposit insurance corporation

Chairman of the Board

Chairman of the Executive Committee

T resident

Vice-Chairman of the Board

HOWARD C.SHEPERD

ALEXANDER C. NAGLE

JAMES S. ROCKEFELLER

RICHARD S. PERKINS

prove

CITY BANK FARMERS
Trust

any

obliging to the preconceived

more

ances in

Bills.

{In Foreign Currencies)

International

Bank Premises

flwkt

Reserves

v
...

Banking Corporation

Items

Due

3,184,559,907

.

Federal Reserve Bank

in

Ownership
*

for

ccc«

'

-

148,354,019

Discounts

and

we

easy way

a

44,951,603

Liability on Accept-

cur¬

an

not

.

$6,308,783,237

*

...

period of

a

activity

1,319,313,958

Other Securities

sort of thing can
in
continue indefinitely, and
it easy to justify projec¬

theory

.

federal

.

Municipal Securities

and

This

fall.

.

Deposits

„

Other

of

Agencies

.$1,616,567,604

lease

new

a

rising
Antaeus-like
than ever after every

stronger

I

our

activity

turn

both;

or

appeared

the

begin, however,

market

life,

could sell

would

LIABILITIES

Banks

forecasts'

consistently incorrect'
in looking forward to a near-term
period of intense speculative ac¬

tivity in which

from

immediate

more,

the

Due

and

„

Leaving this unpleasant thought
for future
consideration, let us

of December 31,1955

as

ASSETS

Obligations

return

Office: 55 Wall Street, New York

73 Branches in

Statement of Condition

last

risk capital?

of

A#

•

fool indeed

a

Company

of

today than it has in the
How many will pause to¬

past.

day, for example, to shed

a

Head

tear
.

the

over

irrefutable,
commonlogic of the

Office: 22 William Street, New York

Affiliate of The First National City Bank of New York for separate

y

administration of trust functions

unemotional

sense,

formula plans which finished sell¬

ing all their stocks in
the

Dow-Jones

1950 when

Industrials

Statement of Condition as

rose

above 200?

The

tive

interest

course

may

disproportionately
dent's health.

he

will

the

run

be

by

of specula¬

the

Presi¬

It is my guess that
and

be

reelected, to

accompaniment of much

similar

that

of

last

op¬

to,

but

milder than,
September.
Under

these

conditions, it seems more
profitable to invest in stocks than
in cash.

What Stocks to Buy?
As

to

LIABILITIES

which

stocks

.

.

$ 60,136,284

U. S. Government Obligations.

.

105,158,048

•

3,298,584

.

18,260,458

Cash

Due

and

from

Banks

.

influenced

timism
and
proclamations of a
golden age. If he doesn't run, one
would expect a short-term reac¬
tion

of December 31,1955

ASSETS

present

should

Obligations

of

and

Municipal Securities

2W85

Other Securities

Loans

and

in

bought, the problem is, of course,
difficult. Nineteen fifty-five
is closing with a gain of around

$160,441,391

.

6,847,606

[Includes Reserve for Dividend $500,902)

Capital

$10,000,000

1

Securities

Federal Reserve Bank

Surplus

*

.

.

.

.

*

10,000,000

°

600,000

.

Bank Premises

2,441,174

Other Assets

4,004,207

Undivided Profits

$199,728,734

Total
be

.

3,125,293

Advances

Real Estate Loans and

Stock

Deposits

Reserves

Other Federal

Agencies

State

Total

.

.

.

.

12,439,737
.

.

32,439,737
$199,728,734

$9,493,087 of United States Government Obligations are pledged to secure
Public Deposits and for other purposes required or permitted by law.
member federal deposit insurance corporation

more

23% in the Dow-Jones
but

Industrials,

many groups are lower now
than they were a year ago. If the
behavior of the market as a whole

has not

been

for

past

the

particularly cyclical
13 years, individual

Chairman of the Board

Vice-Chairman of the Board

HOWARD C. SHEPERD

LINDSAY BRADFORD

We shall be

glad

was

with Mutual Fund Associates and

present

For in

Ed

Company with
Avenue,
Southeast, to engage in a securi¬
offices

NATIONAL CITY BANK

•

—

lander Investment

previously

was

Iowa

The FIRST

The Immediate Market Outlook

"blue chips" which have been

selling

new

is the social

cau¬

superficial

conclusions of the most

and

a

risks.

analysis, if there is

market

analyze.
"blue

taking

on success¬

in

proportion as
they have risen in price. Add to
stitutions

(98), Interlake Iron

Curtis

RAPIDS,

Hollander has formed the Ed Hol¬

everything has

price, and he is

out

on

profit taking

courages

a

of Mitchell T. Curtis &

name

Mr.

Co.

Youngstown

un¬

cation

"The

engaging in

Curtis is

Montgomery Street under the

firm

in

believe

we

aid and election year po¬
litical spending, sharply higher.
I
To relate these
projections to
the more
(for us) cogent prob¬
lems of the stock market, we
eign

no

like

T.

CEDAR

one

who expects to make money with¬

of

Sheet & Tube

far

with
prices
slightly
higher; Interest rates, short-term,
sharply lower; long-term, little
changed; Military expenses, for¬

that given

I

groups

capitalism

der duress which will lead to the

changed

know

and psychology.

news

cyclical depres¬

a

onstration of this

n-

u

156

years

that it will be the successful dem¬

to

producn

these

seem,

favored individual issues

firm

Ed Holander Opens

FRANCISCO, Calif.—Mit¬

securities business from offices at

even¬

directs it have evolved

boom and avoid

1954);

o

a

chell

farm

groups,

Government's ability to prolong a

20% (but 20%
Steel

two

SAN

bull market has been faith in the

struction, unchanged;
Automobiles,

over

speculative

of the prime causes of the present

con¬

15%

reversal I foresee

the

of the

Housing,
down
7%;

down

shaking out

the

under

pany.

though not immediately.
economy and the philosophy0

from

4%;

Overall

and

after
weak

Building

of Harvell Investment Com¬

name

psychology.

a

which

pro¬

duction,

of

business from offices in the Travel
Center

Mitchell Curtis Opens

a

tually,
Our

In¬

consensus:

lead to

can

or early decline in the
price level of these leading stocks
prior to a general reversal in in¬

vestment

able

dustrial

what factors

see

substantial

be

or

reason

to

reaction

of bad
As

Since the writer is not possessed
of the power of divination, I re¬

from

equipments
and
liquors,
finally, to be turning after

"favorites."

Forms Harvell Inv. Co.
DENVER, Colo.—Jean Y. Har¬
vell is engaging in a securities

group, the air-

one

recovered

number

holders;

of

groups

1956;
has

severe

faith in the government's
a

in

so

crafts,

II

--

AT

,

of the prime causes of the present bull market has been

one

as

With thiamin

ever.

Partner, Osborne & Thurlow, New York City
Members, New York Stock Exchange

stock market prices

have been,

groups

Stock Market Prospects
Mr. Thurlow notes

(67)

to

send

a

complete

of The First National City Bank
to

of

copy

President

RICHARD S. PERKINS

of the 1955 "Report to Shareholders"

New York and City Bank Farmers Trust Company

anyone

who

requests

it.

12

The Commercial and Financial Chronicle...

(68)

as

Presidential Candidates

"Life"

96%,
the
movies
photographs.
Ike takes

ful

Republican and Democratic
presidential candidates. Believes the degree of frequency of
Ike's photograph in popular news media will indicate whether
run

millions

photography
We

in

important

week's

my - last:

1956

"If

this

was

unforeseen

no

mine:

event

happens,

President
E i senhower

will

be

re-

nominated
and re-elected
in

1956."
I

do

try to be
honest

an

statistician.

first

Hence,
let

the

tion
W.

Babson

him

70

age.

President

will

66

be

in

This

1956.
would make

ques¬

of

The
Roger

dispose

me

of

by the close

of his second

term.
His rivals, in
Republican and Demo¬
cratic parties, say he is "too old
to
run
again." .Yet, Warren of

both

the

California is 64.
Let

discuss first the possible

us

candidates.

Republican
choice

would

be

first

My

Vice-President

Nixon, who is an ideal man, at an
of 42. Secretary of the
Treasury George Humphrey, my
second personal choice, is 65, but
ideal age

because

his

of

success

as

con¬

a

structive businessman, I doubt if
he could be elected.
I would

former

He

Next in order

select Thomas E. Dewey,

Governor

probably

of

is

New

York.

ideal

the

age,

namely 53; but the party would be
loth

nominate

to

been defeated

he

is

twice,

excellent

an

one

who

even

retary of
two

lican

State Dulles;

The

other

aspirants

are

liam Knowland
Presidential
Stassen

though
be Sec¬

but he

is

older than Mr. Eisen¬

years

hower!

had

administrator.

My fourth choice would

of

of

active

Repub¬

Senator

Wil¬

California, 47;

Assistant

nominating
be held

to

that

convention

were

ex-Governor

Stevenson

of

should

Stevenson
chance of

would

in

have

as

candidate.

a

humble opinion.

my

of

again,
good

a

his

millions lrom
America's

was

This

candidate.
tacts

As for

tics.

I

greatest

have

national
is

He

is

country

net

Brown

forget

Repub¬

So

much

for

Ex-President

may

be

annqunce

Lynn

Tru¬

statistics.

Consider Photography
This

is

age

their

Fred

E.

pointed
Fifth

Exchange,

general

part¬

firm.

Richard

has

Co-Manager

of

been

ap¬

the

509

the

our

prosperous

projections

will

increase

conditions in

Corporations will

Better

-

even more

con¬
Charles

Schmutz

A.

investors

Showings by Large Firms

penalizing

:<v:'

the outlook is for all corporations, the prospects are
promising for larger concerns of the type in which most
as

interested.-The leaders are again expected to dem¬
advantages of size, management, and diversification,
they have in the past few years.
- '
1^
are

onstrate the
as

Companies represented in the Standard & Poor's daily index
industrial stocks forged ahead to a new high in profits in
1955, whereas "all corporations" were still somewhat short of their
1950

Gains

record.

relative

to 1954 levels were 32% and 25%,
anticipate a further increase of about
8% for this group of concerns. As the following table shows, such
a result, in terms of dollars per share adjusted to the
index, would

be

more

>

members of the
Stock Exchange and
Stock

on

corollary of high volume. In addition, unit costs will be
through the operation of more efficient new facilities.

a

Bright

become

American

based

Moreover, the earnings now being reported have greater sub¬
than in previous booms.' In the first place, they are not
by inventory profits as in 1950.
Second, true earning
power of a large number of companies is considerably higher than

Street,

York

high of

stance

associated, as
Registered
Representative, with
the
Montclair, N. J., office of
Pyne, Kendall & Hollister,
43
New

is

proportions.

respectively.

With Pyne, Kendall
has

record

of 50

MONTCLAIR, N. J.—Danifel L.
Reiber

new

in statements to shareholders, because of the
impact of heavy charges for accelerated amortization.

McMahon and

as

a

shown

Avenue office.

Church

of photographs,
The successful magazines — such
an

Shurtleff
in

ners

reach

swelled

the admission of Pierre

R. Bretey, John J.

candidate.

a

partnership.

of the New York Stock

in

will

tinue to benefit not only from mounting sales,
but also from the wider profit margins which

Admit New Partners

.

that

moderate

lowered

Hayden, Stone & Co., 25 Broad
Street, New York City, members

Symington (54) of Missouri; and
WilliamsC 44) of Michigan. I will
71,

forecast

produced the highly

are

Hayden, Stone & Go.

(52), and Clement (35),
both of Tennessee; Dirksen
(60)
of Illinois; Meyner (47) of New
Jersey; Stratton (41) of Illinois;

at

Harriman

members of the New York

general

corporations

will continue at the present 52% rate.
In general, 1956 profits promise to be sus¬
tained by the same combination of forces that

Co., 59 Wall Street, New York 5,

to

all

of

4%, surpassing $400 bi'lion for the first time
in history, that commodity prices will remain
fairly stable, and that corporate income taxes

N. Y.,

West

to

1955, although manpower and productive ca¬
pacity limits will tend to hold gains to more

Stock
Exchange, have admitted
Elbridge T. Gerry and John C.

poli¬

this

This

They will tell

Brothers

taxes

that the Gross National Product

entirely forget
the photos of

on.

forward

in 1.950.

upon

Admits Partners

Kefauver

add

now

look

can

cated) for 1955, $17.0 billion in 1954, and with
the previous peak of $22.1 billion established

„

Among others commonly sug¬
gested, irrespective of party, are

man,

story.

Watch

corporations

years

Brown Bros. Firm

who

their enthusiasm; for Ike.

also

from

the

Dealer"—

Democratic.

should

after

Washington and Gettys¬

illness.

American

and & Poor's Corporation estimate that 1956 aggregate net income

The plan of his managers is

him

of

$22 5 billion, comoared with $21.3 billion (indi¬

same

slightly in

another year of excellent earnings and dividends. We in the Stand-

Gettysburg. But
the airplane ramp
colt and waved to

young

or

be held to moderate proportions.

helped

four

record high

a

and production capacity limits, holds gains will

Shareowners

at

up

to have the voters

his

which would help him with labor
and probab l y with the great
American public. Statistically.the
licans

for

respect

world

of manpower

wheel

railroad

great

and

"New

a

a

desire

forecasts

of the 1950 record. Sees profits sustained, but because

excess

House

He inherited

his father,

Head of large statistical organization

earnings of all corporations at $22V2 billion,

as

Doud

a

have

people. He did the

burg.

knowledge and for his Con¬

in

White

would

life

ran

arrival at

giant; while Humphrey started
with nothing and earned his pres¬
ent
wealth
through
developing
coal, iron, and other mines. Let
me
say, however, that Harriman
has probably had the best train¬
ing and experience for the Presi¬
dency of any possible Democratic
for his

he

like

of

dollar in his life."

the

Mrs.

Washington, in

his

quiet

the

great
wealth"
more than could Mr. Humphrey.
Harriman probably never "earned
a

in

be

This

in

no,

Governor Harriman of New York,
he surely could be featured as a

"male-factor

following

airplane which took him from

him

If Eisen¬

run

to

chair.

election; but not against

Eisenhower
is

not

President, Standard & Poor's Corporation, New York City

more

Denver to

(55 years old), candidate
years
ago,
would get the

hower

Pennsylvania, who is

Massachusetts, who is 60.

the

Illinois
four

the

High Levels

By CHARLES A. SCIIMUTZ

he would have been wheeled onto

this month, I am sure

Harold

48; and Governor Christian Herter
of

the

To Attain New

But,

by

years, irrespective of
what Mamie may want.
If Ike did not want to run
again,

apply

us

Democratic nomination.
no

am

politician, but
I

the

let

Consider

want

four

statistics to
possible Democratic rivals. If

Now

used

evidence that Ike and

Statistics?

for

Forecast

statement of

votes.

by studying the "setting"
in which he allows his photo to be

Democratic

About

What

comment

of
even

do

taken.
most

is

often predict what a man

can

will

continue in office.
The

wonder¬

us
statisticians to forecast conditions.

Cites "evidence" of President's desire to

not.

or

1956 Profits and Dividends

98%

are

photos and his smile alone is

worth

Mr. Babson evaluates prospective

al¬

are

—

photographs. Television

is

By ROGER W. BABSON

he wKl

"Look"

and

most 85%

Thursday, January 5, 1956

Exchange.

For 1956,

we

than triple the earnings realized in
/k.

>

Net Income

Dividends

1929.

V;

Net Income

Dividends

1956 Est..—

$41.00

$21.00

1950

$29.16

$15.26

1955 Est—.

37.90

17.30

1949

23.92

11.42

1954

28.76

15.62

1948

23.35

9.06

1953—

25.92

14.64

1947—

16.92

8.15

1952

24.56

14.33

1946

10.57

6.56

1951

25.30

14.44

1929

13.00

8.19

Larger Dividend Rise
This

announcement

is neither
-

an

The

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

any

The increase

in

dividend

of these securities.

payments, we believe, will be pro¬
portionately larger than the rise in profits. Leading corporations

January 5, 1956

unusually conservative in their dividend policies during the
greater part of 1955, and it was not until the closing months of the
year that the payout was liberalized.
j
were

NrW t^IJE

Even

120,000 Shares

to

The

Magnavox Company

4.75% Cumulative Convertible Preferred Stock
Par Value $50 per

share

Ktsi

f.

Price $51 Per Share

Copies of the P/osfectus may be obtained in any State in which this announcement is
circulated from only such
of the underwriters, including the undersigned, as may
legally 'off er these securities in compliance with the securities laws of such State.

Reynolds & Co., Inc.
Glore, Forgan & Co.
Merrill

Hemphill, Noyes & Co.

Lynch, Pierce, Fenner & Beane




with

another

wave

of

expansion under way, it

seems

reasonable to expect that about half of earnings will be distributed

Lee Higginson Corporation

Paine, Webber, Jackson & Curtis

shareholders.

about $21 a

share

level

17%

about

On
on

this

basis,

we

the 50 stocks in

look for dividends equal to
our

daily industrial index,

a

higher than in 1955 and 2V2 times that of 1929.

Volume 183

Number 5496... The Commercial and Financial Chronicle

.

.
.

.

(69)

•••■

companies realize they

The Economic Outlook

<

By ALAN H. TEMPLE*
Executive

*

Leading bank economist expects business will continue good
duiing 1956, but that thereafter the situation may become
Predicts economic activity, with

rise of three to four percent

its

see

Concludes 1956

as

whole

mu

,

The

country

-x

closing

is

point

of

i.

^

fresh stimu-

no

ding
ft nearly a
and

the

a

year

half,

latest

ures

•

ag-

fig-

rise

still

are

trending

in

up-

ward.

4k

trial
H.

ft/':

Temple

'

:;v.

Product
upward.

Bank

Surveys

♦m?'
still

■a-

ine

credit

and

trcde

has

been

times

business

latest

during

esti-

the

two

of

and

long-term

and

unper

one-half

fairly

expect

way,

near

this

make

in

1956

to

on

was

the

faster

to

1955

impact

And

reverses.

the

a*

xSj

inverted

of

and

the

and

the 1954

re-

Only in

inflationary

we

one

in-

is

easy

to

be

ing

increase
the

as

of the

technical

fruits

of

xr

be

of

make

is

Economic

they

for

-If

be

Chairman, Nicho's Engineering
& Research Corporation

BANK
'

'

"i

gadgets

pop¬

so

and

as

Industrialist, Pittsburgh

C

,

'

'I '

* :

'V'

*

.

»

'

c(2onff&nberl fffafenient

and

show

to

Chairman, Trust Committee

ft"

**

'*

R. WILLIAMS

THOMAS
I

i

Ichabod T.

^onrliltcn

'

,
.

be

Partner,

R. McWILLIAM

JOHN

Vice Chairman

McCAIN

ROSS

W.

Chairman nf the

Cash and Due from Banks

.

$

.

Aetna

967,546,895.90

U. S. Government Obligations

506,550,128.38

.

Chairman and President,
United States Rubber Company

296,678,068.67

State, Municipal and Public Securities

J. CALLAWAY

CASON

ROBERT

Other Bonds and Investments

.

Loans

.

.

.

.

.

,

President,
Associated Dry Goods Corporatiou

.

.

.

.

.

1,306,904,413.49

MAURICE T. MOORE

Cravath, Swiine & Moore

Banking Houses Owned

■>;

Customers'

Acceptances

Liability

on

10,150,384.22

JAMES BRUCE

Accrued Interest and Accounts

de-

Receivable

BENJAMIN

..

.

.

G. GOELET

ROBERT

4,941,531.09

...

v

'

Real Estate

JAMES B. BLACK

$3,156,073,953.14

Chairman of the Board,

Capital Stock
Surplus

....

.

will

Reserve for

FREDERIC STEVENS ALLEN

127,766,000.00

1

.

.

4,406,421.67

.

have

years

from

now.

Reserves for Taxes, Expenses, etc.

Progressive

Dividend Payable January
■

.

1956

Acceptances Outstanding (Net)
Other Liabilities

>

Chairman, Haytian American

Sugar Company, S. A.

JOSEPH

2,361,700.00

.

44,315,592.12

WILLIAM

4,202,424.08

Home

......

i

V

Chairman,
Lykes Bros. Steamship Co., Inc.
P. WORTHINGTON

President,
Life Insurance Company-

•

FREDERICK R. KAPPEL

2,896,012,946.66

Deposits

T.TYKES

v

'

"FOR SALE"

Honorary Chairman of the Board,
W. R- Grace cr* Co.

FREDERICK E. HASLER

7,469,984.85

.

r us tee

G. HOLLOWAY

WILLIAM

197,304,883.76

22,304,883.76 $

Contingencies

President,
Western Electric Com puny, Inc.

$3,156,073,953.14

JOHN

R. SUM AN

/

Oil and Gas Consultant

(A)

Canvas Bound Chronicles from

1926

to

KENNETH

the
Securities

end of 1953 available in N. Y. C.

carried at

$115,682$34.00 in

deposited to secure public funds and

the foregoing statement

•.

are

for other purposes required by law.

.

The

ALEX.

84

bound

volumes

of

the Bank & Quotation
1908-1928




BLACK

H.

President,
Company

SANDS. JR.
Vice

Chairman,

The Dune csudowment

the

Chronicle

including

Record, covering theyears

inclusive.;

Phone REctor 2-9570

E.

Home Insurance

also

(B)

'

Convenient Offices Throughout Greater New York
Every Banking and Trust Service at Home and Abroad
Charter Member New

Edwin L. Beck
Member Federal Reserve System

c/o Chronicle, 25 Park PL N. Y. 7

r.x v

'

I

*

$ 47,234,000.00

4.

we

As'sociaUon, *New York^City" 200 million in population, only
20

.

i

Industry is building ahead for

1955.

.

A. KIGGINS, JR.

President,
A. II. Bull Steamship Co.-

ii

Undivided Profits

when

'..

Pacific Gas atul Erectric Company*
WILLARD

public works 'expenditures,
increased outlays for plant

period

„

F. FEW

President,
Liggett & Myers Tobacco Cm-

7,976,959.25

.>

Other Assets

an(j equipment.

that

I

President,
Commercial Solvents Corporation

can

Possible declines in autos and
housing will be given by highway

econ-

New York

'

J. ALBERT WOODS;-.

42,950,644.53

<

the dollar total of housing will

and
an(j

Farmer

J. McKIM

12,374,927.61

ex¬

a

Board,

Insurance Group

H. E. HUMPHREYS. JR.

-ft

J^HnL

President

H. HELM

HAROLD

ASSETS

expensive;

more

HARRIS

Harris, V phnrn & Co.

LIABILITIES

and

Roosevelt &* Son

UPHAM

/ At the close of business December 31, 1955

equip¬

some

/

Williams & Sons

K. ROOSEVELT

HENRY

housing
wants
contain
more

g
iarge>
.

JACKSON Chairman

A. BOWER

JOSEPH

JOHN

public

housing activity

and

^ "

«,

Real Estate

GOELKT

J. H. HlLLMAN, JR.

165 Broadway, New York

their

if

Yorh

C. WALTER NICHOLS

ROBERT

J
.

B. SHERER
New

show
should still

plant

SJJ® lol
wllj

A: PRYSDALE

Partner, Drysdale cr Company

CORN EXCHANGE

may

construction

and

K. HOUSTON

Honorary Chairman of the Board

The pros-

And

year.

expected

H. JOHNSTON

ROBERT

an¬

Nubel has

ftftft:>>'■•■/:"■//'•■<

'

DUNHAM

,

'Excerpts from a talk by Mr. Tempi®
before the joint meeting of the American

Dec; 28,

Exchange,

Robert A.

general partner in the

a

firm.

price-

or

'

outpour-

that the

become

an

ftftf

mos* Sigantic understate-

can

keeP

Stocks

that

nounce

CHEMICAL

long crest or

a

housing

good

of

Auto

by

that pe-

research

us optimistic. The dangers
should keep us conservative!

York

New

The Probabilities for 1956 should

shape. While auto-

decline,
a

types

reSeaFCh 3nd

orogress

»•

Stieglilz

&

Stieglitz, 52 Wall St.,
New York City, members of the

inven-

ment.

projections;

tremendous

technical progress.
ment 1

and

has

on

producing cracks,

bLldms dre IUH P*uuul'"1s

In Halle &
Halle

I RANK

Product is less than in 1955, there

optimistic

fundamental trends based
well

mobiles

penditures

increased
of

credit

consumer

ment and general prosperity. The

Chairmen, Executive Committee

contribution to the Gross National

about the long-term
&
future.
u
Then
x Hen
there t are/the
permanent
and

ulation

saucer

some

Fillip to Confidence

it

inverted

have

production

confidence

for- the

.

R. A. Nubel Partner

from

re-

works and increased business

accept the lesson

free

not

PERCY

speculation,

money

pect rather is for

reflected in its

permanently

on

of
justification for

no

of

is

economy

N. BAXTER

case

would this be expected.

anyone

the experience of 1953-1954. Once

nod,

There is

comparisons

The

same

asaX otherfind

wage
developments should run
wild
in
the
next
few
months

strength of stabilizing

Businessmen's
been

per-

inflnpnrp

loans

the shape

take

V.

accumulation

tory

influences.
The

debt

economy demon- will be important offsets in other

xu

strated

ecohomy

of

lines

on

that it will

We cannot

automobile

on

lin<?tahili7inp-

.

and

off in

on another. We had underestimated the rapic ity of
inventory
liquidation.
Personal
confidence

as

ft"

nf

officer

trust

a,

Wheeling Dollar Savings & Trust
Company.

one

our

sonal debt is that it has the
ktnri

still ris-

are

outstanding
have not yet crossed,

dustry

high,

have.

we

: rpbe reaj weakness 0f

accumulation is
further before the

go

payments

We had underestimated

remained

decline

continua-

a

merly

strains, notably the expansion of
to what- debt at a rather rapid rate. The
:/ftft,country is enjoying full employ-

of the strongest offsets
ever

factory outcome than

representa¬

enters, tion of the 1955 rate of increase,
be

three

old

accelerating effects of

re-

registered

as

tive in the Wheeling office, Hotel
McClure.
Mr.
Welker was for¬

Largely for

which is

than

will

a

change,

decline in unfilled

a

as

installment loans

new

fJr ]t kas not topped off yet.
•The

expected.

It

the whole

year than 1955. We
consider this more satis-

Westheimer and Company, mem¬
the New York Stock Ex¬

bers of

fully

so

cession

1956.

year on

side-

decline

Inventory

trend

-

continue, but

recovery from

tax

this

slow

that

is

No Inverted V

top

future.

for

to make the

probable

or

' slightly bigger

.

should

that

and

a

stimulus

Assuming that a peak is in the
offing, it is highly improbable

years

may

rate

will

fresh

a

contribution

average

expansion phase,

one

still

Tr.e

likely

growth.
Our

supply

But unfilled orders

production

much

between

can

ing.

still favorable,

rate of increase of

realize

likely

these reasons the recovery may
trending reach its crest in the relatively
expand- near future,

is

the

is

and

any

expenditures

services

supply

of installment credit.

of

personal expenditures

goods and

labor

and

tion and Gross

disclose

with

expansion

National

ca.Pjtal

rising;

mates of

received

orders, cessation of inventory accumulation, cessation of expansion

the highest
indices are

ing.

of

rate

supply

such signs

produc-

were

Price

year.

.iv:

it

must

top

W. P.

—

Welker has become associated with

reflected, to say the least, in our
present activity. I would look for

latest

aggregate figurcs of indusAlan

The

1956.

they

The

moderately

a

to support continuation of the
1955 rate of increase. Moreover,
no reasonable person expects that
ah of the industries which con¬
tributed so strongly to the 1955

for

gregate
,

terials

ex-

pan

what

to

;

*

xi

j

Reduction

into the equation for the business

down in part because
there is no longer sufficient slack
available in factory capacity, ma-

trade

have been

to

movement

ways

'

forecast

must slow

production
and

1955.

in

aggregate

rise

after the top could and probably
will carry so far through ,1956 as

duction

/ft/ft

,

receive

comparable

slow

Weslheimer Adds
WHEELING, W. Va,

1956 vs. 1955
A

new

may

'./ft ft

income

tures must go on and heaven help
the businessman who doesn't keep

lax

saucer¬

a

.

will

omy

activity at the highthe year.
Although
•

the

'

.„

its

general

-ft'/ft,'

higher

Xv.'.'ft;.'-"'-'d'"

a-fld most prosperous^year lus from automobile and housing
business

with
est

.

out

'

turn out a

may

better year than 1955.

turn

aggregates with
GNP figures,

or

products, there is a certainty of
expansion ahead. Capital expendi-

We

presenting

year

a

laboratories

abreast.

likely

a

in Gross National Product,

peak at mid-year, with entire

like picture.

competition,- so -are.
expanding
their
research
and
plant facilities.
As long as re-

.

The First National City Bank of New York

somewhat vulnerable.

faced

are

with intense

search

Vice-President,

13

York Clearing House Association

Member Federal Deposit Insurance Corporation

lf,'.

•

14

(70)

of

Ont-oi-State Mortgage
n
Investments by Savings Banks
v

possible second lien. This
avoided, however, if the
is

gage

and

Cadwalader, Wickersham & Taft, Attorneys, New York City
In

notes as main problems: (1)
compliance with local laws
affecting the mortgagee's rights and remedies; (2) the ques¬
tion of doing business and exposure to local
taxes, and (3)
compliance with the requirements for maximum FHA insur¬

VA

Urges

chanics

•

"With today's pressure for higher
higher interest or dividend

any

rates

on

savings deposits, savings
it increasingly nec¬

bankers

find

essary to

discover

new

of

sources

high

investment yield. Although
mortgages have traditionally met
this

need

banks

reasonably

for

the

well,

many

time

have

first

found their local
supply of accept¬
able mortgage investments inade¬

quate and have begun to face tne
problems involved in the purchase
of out-of-state mortgages.
The investment laws of most of
the 17 savings bank states have
been
to

liberalized, where necessary,
permit out-of-state investment

in mortgages insured
by the Fed¬
eral
Housing Administration or

guaranteed

by

ministration.

the

Veterans

Since

found
at

comparable

rates

demand

in

for

bank

to

undertake?

should

field

be

of

for

in

here

said

investment

by

no

this

Briefly,

out-of-state lending
three main

an

raises

program

discussion

to

FHA

mortgagee's

and

There
to

business"

substantial advantages

are

taxes;

mortgage in¬
vestment
program.
It
permits
geographical diversification which
helps to protect the bank against
economic

only

fluctuations

region

one

or

It allows placement of
capi¬
areas

(and

I

not

am

having around
sult,

referring

possible
loans

to

at

discount

here!).

banks

many

that

is

local

it

have

law

and

forty-odd

states

have

©Ih

Annual

National

Banks,

by

Mr.

Mid-Year

Association

New

York

of

City,

Redfield

at

meeting

of

the

Mutual

Savings
1955.

5,

•

-

which,

invested.

These

a

besides requiring the

depts
.

our

such

the

Civil

Law

"privilege"

a

Of

the

forms,
to

yir§lni«i
deeds

marginal

in?
?i°r i3gjS' a
h e
Maryland,

of

estate,

ptntonuontfil
fn

o

Tttii

:fhLa*Kla^rifM
lat the "a^ure

of

^hlch recltes

tne

■■■'ft'/'
?

j

nLoio

m

+

>and chat-

sfvary^f
Tom
to state.
siaie

•

why

can

see

the

counsel

leties

necessary,
touched upon

icing

or

local

taxes.

; If

a

investment requirements
American investors

seeking

op¬

portunities to'invest their funds in
established Canadian
companies with

growth potential.

and

^

First

Corporation, New

be

laws

aware

custom .)are scon-

of

and




affecting

remedies

the

-

its

state

might
mortgage in-

existing

'

Our

ingredient

great, the

of

of

Michigan taxation
in one case, involved payof Michigan income taxes

eco-

aration

racy

advised

passage

of

permitting

Michigan
mortgage

us

in

invest-

Michigan, tue
permitted activities

Continued

on

of

legisla-

by unqualified foreign

porations

in

its

is

letters

standards in

of

of

the

prep-

the

offering circular,
responsibility for the accuand completeness of the in-

formation

filed

with

the

Cornon
Sec-

the issuer and underwriter.

ondly,. if the staff
believe

that

wjth fraud

in

in-

enormous

in

rrlissioh, however, rests solely

filing

a

or-

grossly

a

has

has

to

reason

is

been

tainted

prepared

inadequate^ manner,

or if the exemption is not. avail-1
able to the issuer, the Commission

development of min-

serious tissues

an
order denying or sussecurities/pending the exemptions Cases in(jndustry and this Commission. Ir- volving fraud are referred to the.
respective of any* legislation cr ? Department of Justice for crim¬
regulatory controls, losses will be«inal prosecution. Of the
?3. orders

problems

both

suff ered : by

for

both

the

promoters

and/ issued

investors in mining enterprises.

June

by
1

the

Commission

through

Nov.

15,

since

1955,

The mining- industry,. like other J denying or suspending the Reguis subject 46.. the Se--latlon A exemption, 10 have been

carities Act, of
to

1933

raise

when

funds

it

at-*

from/

made .against the

cor-

scope

24

in

_

^ng fun and fair disclosure of the
character of the securities sold to
public
fraud

in

un(jer

-

and

the

by

sale

preventing

.of

securities,

curred
stock

in

the

distribution

of

the

of small

mining companies,
In some instances, Regulation A
has been used for purely srtock--

the

concepts of full pub- , jobbing purposes. Offering^ have
ijcity 0f material facts inherent in .been withdrawn as soon as suffi^he

philosophy . of the securities
acts, the public investor is entitled

cient securities have been sold to
pay the claims of promoters and

tQ certain

tion

basic, minimal informa- jthe commissions and expenses of
about, tlie
enterprises
to underwriters.
The insiders walk

.

w_hich

he

some

0f

contributes

these

his

away from the deal and the public
dis- -investor is left with a worthless

money,

important

ensure requirements include a
description of the business, its
properties and securities, transactions between the issuing corporation

and

the

promoters,

estimates of mineral

mining

profit

accurate

reserves

margins,

and

and'the

In

ers.

promotional issues, the
Commission also requires the is-

suer

equity in a company without operating funds. Other promotional
issues have been heavily weighted
against the public investor, who
has furnished all the cash capital,

through the issuance

to

state

of

warrants

and options to promoters and

un-

derwriters. Sometimes, the underreceived more than
third of the total gross
proceeds

from

the public distribution
commissions and expenses,

in

prominently on'the

Public investors will continue
page or at the beginning of, to show
confidence in the minthe prospectus or
offering circular ing industry
by contributing capithe speculative nature of the ental. toward enterprises
cover

terprise.
The

an(j

rules

only° if

-

promoters

Congress

has
permitted,
Commission has bv its

implemented,

simplified
procedures for raising a limited
am0unt of capital from the
public,
jf
an

being

page

issues filed

theythe Denver Office. /

/Under: this: Act, the SeDue to the intensity of the puband Exchange- Commis-> lie speculative interest " in urasion.has the primary mandate of vnium,,the evils of
high-pressure
protecting the public by requir- salesmanship has sometimes oc-

legal achon for

^ereofJn the middle of
counsel

local

task

Commission assists
issuers to comply with reasonable

The

created

First,

writers have

!

Den¬

the

disclosure

fore, not be stifled by unnecessary
regulatory restrictions.^, Because
mining is basically speculative in
nature'and the risks of success
and the chances of exceptional reteres^ jn

administrative

COmment

...

eraJ resources has

of

during the
October, 1955, to 20.
r

two-fold.

raising of venture capital
public' for legitimate
mining promotions should, there-

are

number

capit,al ent0 PrLessing Regulation^ A "filings

the

turns

The

decreased

a

ment

of

of

unseasoned

The

from

filings

rants to promoters and underwrit-

the

QUEBEC

and

essential

an

month.

Continuous avail-

sources

new

per
ver

month of

Michigan, following the advice

in

of local counsel, we recommended
that our clients qualify before in-

„tion

WINNIPEG LONDON HAMILTON

Orrick, Jr.

the state concerned,

vestments

In

D.

of

than

more

During the summer
this year, which was

height of the uranium boom,
Denver filings
averaged 51

effect of stock dilution caused
by
the issuance of options and war-

and,

TORONTO, CANADA

NEW YORK

in/the

jj
You may be interested in two
brief examples of how
subsequent
advice from local counsel

stantial risk

EMpire 4-0161

KITCHENER

^new jlocal

involved.

1953

CALGARY

any

decisions

or

rights

Head Office

SHERBROOKE

as

For the proper
protection
of the bank, the
underlying advice
m Jocal .counsel should
be at con-

under protest and

VANCOUVER

far

so

cerned.

merit

MONTREAL OTTAWA

in-

vesting in mortgages, even though
such qualification involved a sub-

York.

Inquiries invited

50 KING STREET
WEST,

in

■

Our facilities include
private teletype
wire service to offices
in
principal
cities of Canada and to
The

Boston

program,

local Jaw

affe'ct
*

ajnortgage

tinuing affair, brought up to date
at least annually so tnat the ibanK

the

develop

.and,I,;have/tempts:
^the many*pUbiic;
of laws
affecting
/^hre- * cities
operation
of .foreclosed

Jocal^ counsel <,.regardingii the

may

of

million.

fromi.the>foregoing/irldustries>

cooperation,^ of^lpcal

is;

even

vestment

of

A.

country and

:

You

of

serv¬

se-

this

from individuals who
are willing to take the risk of uncertain, speculative investments is

document,

qL
ing

requirements-.for

complete facilities for

tial to the

tf

plated, the bank s generalycounsel should seek the
basiq. opinion

offers

the
the

gross aggre¬

a

offering price of

months

but
esssn-

curity of

,r,

.raPi?e Pr0Sram 1S contem-

...

js

$92

the

region

n

properties

Since 1921

gate

eco-

pros-

terprises

ern
gallantry, Texas requires
special form of acknowledgment

va

i

increased to 427 for

the

of

during

gross

to

aig0

«!' 5

Commission

only vital

parity

on

a

the

aggregate
offering
price of over $59 million. From
January to the middle of Novem¬
ber, 1955, the number of filings

is

area

of

not

nomic

sout

Closure,

Underwriters and Distributors
of
Canadian Investment Securities

this

vltrtrn11 nnt
with true
friti
and Tpyjif
Texas. With

Califo

not

MMITED

a

Office

ing mining
industry in

New

itrntf'^FnrmiiitiVi
L
\
in

our

rules

for

Insurance

ac¬

charges, support

past

years,

some states, nomic growth.

cJdi ^ Not?

con-

Regula¬
must be
complied
with. The number of
filings un¬
der Regulation A in the Denver
A

flourish-

i^i^cL^ fnrm6

JJ^

ditions prescribed in

0f

require an assignthe security takes the

ment when

of the Act but the terms and

the calendar year 1954 totaled 338

notations,
•

subject to
requirements

existence

qui,re n0 assiSnmcnt of
t ust some

of

be

The

Some states, like

.

regulation.

not

may

few

schedule of their

a

issue

states,

o
states, like
Ohio, permit assignments by

means

certain

mortgagor's

funeral

as

use

State

are

sum¬

few of them. Louisi¬

cords

with

SEC

to

provi-

the

to

to

broker-

against

exploration and the full registration

dur-

the

the free world.

we

by way?of example,

the

Dec.

in

ing

ability

some

let;me list
ana,

addition

the

tion

?hi°^
the mortgagors.

a

the

marize, but

unfamiliar
address

which

in

top numerous to attempt to

lo¬

greater discount, the banks have
•An

custom

encountered

clients

cally, with correspondingly favor¬
able net yields. Even
disregarding
a

requirements for maxi¬
FHA insurance of VA guar¬

foreign jurisdiction
indispensable. There is a sur¬

re¬

greater

available

the

prising variety of peculiarities of

out-of-state

considerably

than

a

compliance

counsel of the

the

found

local

to

exposure

finally,

the

securities

rl

requirements with respect to the
acceptability of hazard insurance
companies and agents, in order to

it

been

As

have

purchase

a

to

have

we

and

and,

to meet the first problem, that
of ;local mortgage laws' and cus¬
toms, the assistance of qualified

already saturated

weather

file

anty.

indus¬

tal in

not

with
mum

affecting
few

a

tries.

recent

rights and remedies;
the question of "doing

secondly,

out-of-state

an

In

Commissioner

Three Main Legal Problems

with

,

Pla°teau
of

requires revenue stamps, and in
Georgia, which requires a clerk of
court's receipt. Florida has a requirement that mortgagees must

this

meet.

r

mortgage tax, you find an
intangibles tax in Indiana which

been

to

coupled

over-the-counter

ProSress in the

cor-

forms

some

the

development of mineral resources
that has been continuing on the

that

paid.

dis¬

that

in

public

protect

The nation is grateful for the

.

taxes

to

Points out SEC is making objective
Study
implications of the Fulbright-Klein Bill, which would

subject

afu£ p)ortSage

various

are

the promotional nature

on

exemption

dealer insolvencies.

of the

York

detail,

has

a

the

Also maintains that it is advisable

safeguards

new

a

^

weH

as

and

motional companies.

provide

do

sure

Orrick, commenting

ventures

from registration
for securities issues under $300,000, as pro¬
vided under Regulation A, reveals that stiffer
requirements
are
proposed by the SEC for the use of Regulation A by pro¬

the mortgage is not enforceable until the tax thereon is

the

impractical

means

make

them

moTtcace

with

usually

found satisfactory by many small¬
er
banks and that the Obstacles
are

must

with

,

savings

Before

these problems

cussing
it

burdensome

par¬

sequent necessity oft assuring
reet translation.

problems

medium-sized

lien.

Lai

sion

too

money

raised,

mining

requirements

are

y°U

advantages. Are the
or

which

f^oe^'rIn^UnrT°aRiCCi

mortgage

out-of-state

VA loans.

carry

You may naturally ask whether
these benefits are offset by dis¬

legal
lending is usually
problems: The first is compliance
more
restricted, where permitted
with
local
laws
at all, it will
affecting
the
be convenient to
limit

investor

There

Ad¬

conventional

the

market.

involved

are

areas

is
greater compared with the home

small-

purchase

or

problems

not

;Jf

capital

new

of

right of
entry through the surface of the

higher quality investments

where

Commissioner

reciting
provides

ticularly in the Western states, by
mineral extraction
rights, which

'

end

rights

By ANDREW DOWNEY ORRICK*

Commissioner, Securities and Exchange Commission

mort¬

mortgage

so

Constitution

homestead

Title

bank entering upon an
out-of-state mortgage program inquire carefully in advance
as to its
legal requirements for acceptable mortgage investments
guaranty.

lien

clause

a

1

be

can

also ahead of the
mortgage unless
the
mortgage represents a me¬

field

or

Texas

for

discussing the advantages and disadvantages to savings
banks in making out-of-state mortgage
investments, Mr. Red-

vendor's

a

contains

The

ance

The SEC and Regulation "A"

them ahead of the mortgage
lien,
thus in effect making the lien a

By JOHN J. REDFIELD*

f:

indigent widow, and ex¬
of last illness, which places

an

penses

aggregate offering price of
jssue ^0es not exceed

$300,000,

of promoters

°rrick

-

the

dealers

or

underwriters in-

evitably injures the entire mining
and securities industry in thisTegion as well as the persons and
companies particularly involved,
The

*£?,

broker

treat them fairlv.
Existence of
over-reaching or fraud on the part

Th0

at

and

rnmmicdnn
Commission

hoc
has

Continued

on

attempted

page

28

Volume 183

Number 5496... The Commercial and Financial Chronicle

(71)

period

may,
notwithprovisions of any
Agreement,
"maintain and adapt to
changing

Problems Relating to

members

other

payments

International Monetary Fund

In pointing out currency

convertibility is an essential require¬
trade, and this convertibility would end

of multilateral

ment

discrimination in international

.

trade, International Monetary

Fund expert contends that if currencies of the great trading
countries

made

were

convertible,

lateral trade would follow.

Monetary Fund

general system of multi¬

a

Cites provisions in International

agreement for

establishing^ and.maintaining

convertibility of currencies of member nations, but thin objec¬
tive, he points out,
tions.

Reviews

unattainable because of

was

It is

problems in the<progress toward convertibility.

vision

.

ance

The

central

principle of

of

multilateral

Convertibility
■/:.

.

.

sys-

a

trade

Trade

Currency convertibility
essential requirement : of

is an
multi¬

lateral:

f" For

*:

/ bach
/can

vertible,
be

the

for its
from

it will be
able
■

or

no

drain

dollars in aid to hasten

and

For- no

country

the United States to insist
mature

of

removal

i

goods. The United States and Can-

against dollar imports
:

be asked whether these

Jt

could

countnes
thei

have

conserved

d doUar resources for

w

reconstruction

nati

without

jn t

discriml-

doU

imports.
they could
de_
preciated the dollar value of their
currencies so much that it would

Conceivabfy

hav£

the utter destruction of confidence
in European

currencies.

have

an

forced

It would

enormous

Continued

on

distinctions

discriminations .that

on

result

<

soon/
can'?

Bankers Trust Company
NEW YORK

CONDENSED

STATEMENT OF CONDITION, DECEMBER 31, 1935

from 'p

various
types
of
con- the inconvertibility of leading cut/
vertibility, it may 'be : accepted rencies. - / ^ ■r<
»> :
■;
^ .
that, the currencyconvertibility
A substantial degree of multi-;
among

/

'with

which

we

are

concerned

ASSETS

lateralism in trade arid payments:

is

Cash and Due from Banks

/that which will provide the finan-

cial basis-for

has been achieved irr recent years./
general system of. The most important limitation on*

a

multilateral* trade.

Wfe

think

can

a

■of

convertibility'-in this sense as
involving the right of exporters
;
of- other countries, receiving payment in that currency, to use the
'proceeds-of their-exports freely—
to transfer the currency to other
\ holders anywhere in payment for
1 goods or services and to sell the
currency in any market for dollars or any other currency./
;

of

system

general

'

*

lar basis.

-

It would be

however, to

assume

mistake,/
that the wider:
a

establishment of convertibility ,
convertibility of currencies would would result in a large increases<
.be the disappearance' of discrirri- in the exports of the dollar counThe natural

;

of the

consequence

*

tries.

ination in international trade and

Most

small countries

of the rest of the world

are

I not

their

currencies

convertible.

brinsr

At

an

ALEX H; AUDREY

Exerutue Vict President
'. >

•,

-

■.

.

-

•State and

i;;

:

JAMES C. BRADY

President,

; countries

which

considerable number of

JOHN M. BUDIN'GER

„

A

merit un

i,

Viet President

ELLSWORTH BUNKER

President.

to sudden

apply

currency
and
discrimination to their

:

country
*

is

in

the

currencies.

convertible

countries that make
"between

their

payments

:

; own

form

President, Cu'tmnn Pros., Inc.

'

E. CHESTER GERSTEN
Executive Vice President

1

Customers'

dollar

(and have

currencies

The

WILLIAM B: GIVEN, JR.

other

and

convertible)

able

'do:

to

largely because a
'substantial part of their exports is
to

the

so

United

States

other

and

Agreement provides that

dollar countries.

.

;

"engage in

r-

"V.

V:."

more

trade,

than

and

sterling

25%

the

of

total

$10.8

does

area

LIABILITIES

Corporation

Economic

expressed

by

Report.
Dr. Bernstein

The
ire
are

essarily

not




$ 40,299,500.00

.

150,000,000.00

.

$

46,797,032.95

p

Dividend

Payable January 15, 1956

...

•

J'orlner, Moses and Sinyer

2,494,481,067.69

Deposits

JOHN M. OLIN
Chairman oj the.

Pvard,

Reserve for Taxes,

Olin Mathieton Chemical Corporation

Accrued Expenses, etc.

...

Tlie

Fund

t

that

"in

the

Agreement

v

• f

,■

Acceptances Outstanding

$25,551,370.17

Chairman of the Board,

Corporation

Less Amount in Portfolio

23,445,698.50

2,105,671.67

PHILIP D. REED

Chairman, General Electric Company

3,164,255.76

Other Liabilities
WILLIAM T. TAYLOR

Vice President

$2,784,756,323.58

New York

B. A. TOMPKINS

THOMAS J. WATSON, JR.
President.
International Business Machines Corimralion

Assets carried at $77,025,446.95 on

JUSTIN R. WHITING
Chairman of the

Board,

December 31, 1955,
tor

Consumers Pouer Company

were

pledged

other purposes.

*

^

providest

postwar trahsitibhal1

23,747,803.68

flew Jersey

convertibilityof theirCurrencies.

necnec¬

2,820,965.00

v

of the Furid to
a

237,096,532.95

HENRY L. MOSES

,

held by another)
paying for its currency

.

Undivided Profits

Sew York

THOMAS A. MORGAN

Allied Stores

balances

establishing and maintaining the

views

those of the management of the
International Monetary Fund.

Surplus

B. EARL PUCKETT

currency

*.1A sta!*ment b£ Dr.- Bernstein to the mit the members
the

.

ber making the request or in gold.
These are the provisions that coin-:

of

Subcommittee on Foreign Economic Pol•icy of the Joint Congressional Committee
on

Capital (par value $10 per share)

either in the currency of the mem-

world

billion

buy

/ 22,240,136.17

Sew Jersey

,

member,

The

member shall

its

of

/

.

President nntl Dire, tor,

-

■"

portance.

each

.

Chairman,

DANIEL E. POMEROY

natory currency arrangements or
multiple currency practices except
as authorized under this Agree-'
ment or approved by the Fund."
The Agreement also nrovides that

practical

Acceptances

LEWIS A. LAPHAM

V r-"-'

discrimi-

any

on

Finance Committer,
01 in Mathieton Chtmual

PAUL MOORE

problem of establishing convertibility is confined to the leading currencies of
Western
and
Northern
Europe,
The convertibility of sterling, one
of the two principal reserve cur¬
rencies, is clearly of strategic im-

The

.

ber shall

no mem-

Liability

7,895,272.25

Chairman.

,

a

*

17,918,700.45

.

President, Meintle Shoe Corporation

multilateral system of payments
in respect of current transactions."
To implement this objective, the

are

20,323,452.18

;

A metmtn Brule Shoe Company

Kern County Land Cumpimy

made their "to assist in the establishment of

.

WARD MELVILLE

The Articles of Agreement -of;
the International Monetary Fund
state that one of its objectives is;

few

...

33,966,388.13

$2,784,756,323.58

GEORGE G. MONTGOMERY
President and Dire, tor,

;

.

Accrued Interest, Accounts Receivable, etc.

HOWARD S. CULLMAN

arbitrary curtail-

Convertibility and the

distinction

no

all dollar exports

International Monetary Fund

of ,in-

.

President

JOHN W. HANES

ment.

imports and other payments only
because an important part of their

.receipts

and

.

Other Securities and Investments

Banking Premises.

Sotumul Ked Cross

S. SLOAN COLT

..

end to the discrimination/

exposes

Municipal Securities

Brady Seeunly A llealtif Corporation

(jrace Line, Inc.

; present, a

1,402,989,078.19

Loans

/'

FRANCIS S. JIAER
A

463,761,675.65

-

,

Executive Vict President

.

increase

to approximately the same extent.;,
Convertibility would, however,</

in a" position to determine
independently whether to make

:

That is unlikely unless and.

until the gold and dollar earnings

payments for balance of payments
■reasons.

U. S. Government Securities

multilateral-

trade arises from the discriminations still applied against dollar1
imports and dollar payments^ Such *
discriminations are obviously-/of.
special importance to the United
States and Canada, and to other/
countries—Mexico, Venezuela, etc.
—that do their business on a dol-V

'

815,661,620.56

$

.

DIRECTORS

MEMBER

OF

THE

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

to secure

rise in

page

pay-:,

the scale of the payments:

to be

on pre-

restrictions

sources ior reconstruction.
With their own production far not have been feasible for their
below prewar levels, the limited people to buy dollar goods. In the
reserves of these countries could abnormal conditions immediately
have been quickly dissipated in affer the war, devaluations on
meeting the war-born hunger for such a scale would have risked

is not likely to have the scope qr

e

technical

the

recovery,

inevitably;.,

trade

on

it could only add to the burden of

dis-port markets. Such discrimination

cussing ' t h
M., Bernstein

little

gold and dollar reserves. With the
necessity of providing billions of

markers, mutual protection, of, import-ex-

I Without

^

E.

natory basis, were intended to enable them to conserve their re-

on a country basis could, of course,
Persist, but its purpose, would be-

buy

and sell in the

L. /best

The

volved

The reason,

that such trade in-

was

currencies. Discrimination in trade

un-

.to

would

and

^ worthwhile to discriminate on a currency basis if all of its/
payments are made in equivalent*
currencies — that is, convertible

country,

any

restored,

disappear.

to

every" country
pay

trade

of payments purposes would

'

to

small.

,

ments discriminations for balance

; proceeds of its

imports

be

severely restricted

from dollar countries.

however,

coun-

when imports of simi-

lar goods were

were made con¬
general system of mul¬

a

tilateral

unless
country

exports

made for the continu¬

was

to

known

that

trading countries

trade,

use

even

restricted, and long-established ada were almost the only large
much the same .restraints as the export trade was abandoned for sources of ready supply for goods
United Kingdom on dollar pay-; the duration of the war.
A con- of all kinds. By restricting their
ments.
siderable amount of the gold and dollar purchases to the most esIf the currencies of the great,

Multilateral

and

permitted from other

tries,

,

arrangements, under
whmh they could restrict transfers and payments on a discnmi-

of inconvertibility and other

own production.
It is
imports of some goods

true

transitional

why pro-

see

revive their

were

were

exchange restrictions during a
postwar transitional period. The
war involved far .more destruction
and ? disruption than is generally
realized. A country like the United
Kingdom, for example, put all of
its resources into the war. Industrial investment was cut to the
bone, consumption was severely

sterling balances represent about
is that 30% of the gold and foreign exeach country will buy the goods change reserves of the free world *
its people want to import in the-outside the United States and the
best, market—that is, where they United Kingdom.
It should be
pay the lowest prices; and that it noted that sterling balances held
will sell the goods its people pro- by the monetary authorities of •
duce for export in the best mar- sterling area countries are conket—that is, where they receive vertible
into dollars, but these
the highest prices.
countries are expected to apply

tern

important to

goods, the countries engaged in reconstruction could begin to equip their factories arid

procured

committed, however,

the Fund Agreement.

ments of

•

disloca¬

war

are

sential

the

Lease.

transactions."

■

sold to pay for war material
abroad, principally in
United States, before Lend-

were

on

cur-

The most urgent task confrontto withdraw restrictions when ing these countries was to restore
their payments position enables quickly their capacity to produce
them to do so. This provision per- and to trade. Otherwise, the eco-'
mits countries to restrict transfers. nomic efficiency of these regions
of currencies and to discriminate might have
been seriously imin payments ffcthe basis of the paired for a long time, with incountry to which or the currency calculable loss to themselves and
in which payments are mqde. In with a depressing effect through- '
brief, the temporary incohverti- out the world. Their reconstrucbility of currencies is authorized^ tion needs were expected to be exunder
the transitional arrange- ceptionally large; their resources

■

-

transfers for

international

rent

Members

Director of the Department of Research and Statistics,

v/.:

restrictions

.

.

.

and

area

spent and some of ^ts most
profitable foreign investments
were

of this

articles

circumstances
By E. M. BERNSTEIN*

dollar reserves of the sterling

the

standing

15

deposits and

23

XI

The Commercial and Financial Chronicle...
Thursday, January 5,1956

(72)

first

and then the other

one

tionally accounted for around plus other incidental atomic
four-fifths
of
its
business. energy work.

of the food

giants. The com¬
is regarded by several

THE MARKET... AND YOU
By WALLACE

pany
of these

as

a

off

chances

new

like Electric

indications

that

new

in

sale

of its

Washington

and

concentrated

year

studies will be made

of aircraft profits on defense
It upset the plane

makers

and, in turn, the
year's first market session,

leaving uncertain action
that

further

chilled stock
wise.

great reinvestment rush.

any

Motors

were

affiliate, Securities

and Exchange
operations Commission 1 a u n c h e d its
to reduce personnel. Through
drive against some of the hazy
this period its showing has
promotions, Climax is actual¬
been considerably less glow¬
ly working for the govern¬
ing than that of the other ment's uranium program and
outfits that have participated
will continue until at least
fully in the boom and the 1962 under current contracts.

work.

around

British

were

this

start

poor

in their famil¬

that

iar rut,

this

reflected

market-

mills, will fare with in¬ opinion of some of the market far

creased

orders

from

other

shares, while
with the market,
didn't reflect any particular
concern over the
problem. For
one, the preliminary estimates

spectators, could also be at a
turning point is Clevite Corp.,
once
heavily dependent on
the auto industry to buy its
bearings. Large-scale diversi¬
fication was begun five years
ago that now has whittled the
percentage of the gross sales

of 1956

from

lines to offset

a

trim in their

auto accounts.

The

steel

swaying

profits

were

with forecasts of

optimistic

replete

the

firms

auto

below

is

which

Colgat e-P a 1 mo live,
indicated

that

it

intends to boost its

payment
meeting this year.
This giant in the detergenttoilet soap-toothpaste w o r 1 d
might be considered a neg¬
lected blue chip since it has
at the first

high but nowhere near
60 % with further reductions its all-time
peak, while other

even * more

than the all but inevitable. The new household word - issues have
last year, and lines include electronic instru¬ long since forged above any¬
added additional protection to ments,
including one of the thing even seen before. Col¬
well-sheltered dividends that larger transistor makers in
gate also has the important
provide a yield above the Europe, and an aviation af¬ prop of large foreign sales.
average of the blue chips filiate specializing in jet en¬
American Safety Razor,
generally.
' gine blades and vanes.
apart from some troubles in
recent years, could be another
"The Stock of 1956"?
A Merger Hopeful
illustration, like Colgate, that
The hunt for the "stock of
The merger hopeful - is
a
buried corporate
identity
1956" was in full
cry and Libby-McNeill & Libby which
might have its drawbacks.
most
of
the
attention was has more inherent worth than
Both
firms
produce many
pretty well centered on the the price of the stock might
familiar household products
secondary issues that have indicate and which, off and
but
probably few
laymen
done little up to here. To
some, on, has been mentioned with
could
detail
any
of them
fluently. American Safety is
also
a
laggard by market
mills

figures

-

posted

standards and has been avail¬

Semi-annual Appraisals

able

Equipment Trust Certificates

recently at only a third
peak. It has been
busy with diversification that

of its 1946

now

to

carpet

and

potential defense
work to 'try to whittle the
heavy dependency on blade

City of Philadelphia
and

and

Philadelphia School District Bonds
of December

stretched

has

looms

as

31, 1955

razor

sales that has tradi¬

A Continuing Interest in

Continental Telephone Co.
Grinnell

Now available for distribution

Write for your
copy

incorporated

PHILADELPHIA
•

Pittsburgh




•

Allentown

•

Lancaster

Keyes Fibre Co.

•

_Established
Scranton

•

Atlantic City

a good num¬
analysts who
quick improvement but

of market

see no

definite

Phila.-LO 8-0900

undervaluation

at

Motor stock in mid-month. A
concomitant

question is where
will go if, as seems
probable at the moment, a lot
the money

prices that should of the demand for Ford goes
ultimately result in a re¬ unsatisfied as the offering is
into small pieces.
bound. The company is solid¬ trimmed
ly engaged in atomic energy This, too, served to keep a

Work

cautious air

the first atomic

this week.

including contracts for
plant of other
than pilot-plant size, as well
as reactors for not
only sub¬
marine but larger ship pro¬
pulsion from the government,

[The

PH 30

the market

over

views

expressed

this

in

article

at any

time

of

do not necessarily
coincide with those

"ChronicleThey

the

presented

axe

those of the author only.]

as

Analyzes 1953 Recession and inflation Virus
"Monthly Letter" of the First National City Bank blames
for bursting

restrictive credit and curtailed
government outlays
1953 bubble of overopiimism. Sees stable

growth

accepted governmental responsibility, but finds
of debt build-up, borrowing
exceeding

widely

as

tolerance

our

savings, unwholesome

of Federal Reserve Credit
may be due to a little too much
inflation virus in our blood. Chronic mild inflation termed not
use

the way to perpetual
prosperity, with unsound governmental

policies

inducing general unsoundness. Public debt retire¬
sought ahead of enlarged outlays.

seen

ment
The

January

"Monthly

Bank

Letter" of the First National
City
Bank
of
New
York
finds that
there is wide acceptance in in¬

cluding in government economic
policy the objective and respon¬
sibility "to foster stable growth."
The

"Letter"

reviews

the

policies

pursued since World War II cul¬

minating in the prospect of a
balanced budget for the first time
in five years with the past year's
record being almost too good to

be

The

true.

part,

"Since

■

"Letter"

notes,

in

follows:

as

1952

have

we

success¬

fully ended the Korean War, freed
markets from arbitrary con¬
trols, stimulated the wants and
energies
of
our
people, given
our

them

efficient tools to spare

more

labor, and
bers
to

Of

built incredible
homes

new

mention

Unknown

and

products
10

even

num¬

not

cars,

practically

20 years ago.

or

When people accept the fact that
wonders will never end, we are in
an

of

era

mism.

v1

""This
Year's

is

this

and suffering the inevitable disap¬
pointments. Markets, populations,
prices and profits have practical
limits and at some point must fail

match

to

the

season

fidence

abounds,

and

for

New

appraisals
Con¬

prospects.

fancies of

soaring

the human mind,

"The best New Year's resolution
is

to

avoid

counting too many
Though not

chickens.

generally

this was the
1920, 1929, 1937
arid 1953, If we hold to it, another
year of bounteous prosperity lies
within
grasp.
We need balance
and discretion among the leaders
of industry, agriculture, and labor,
and the people generally. Mote
adopted,

best resolution for

than that

to have sound

need

we

constructive

policies

the part
policies
irresistible

on

of

government. "Unsound

of

government

throughout.

the

in

save us

the consequences of raising
aspirations and expectations
beyond possibility of fulfillment,

:'v.

business

not

may

our

inducement

resolutions

fromany-

experienced

from

forward-looking opti¬

of. 1956

is different

new era

thing previously
history. But this

unhatched

"On

the

an

are

to

unsound

surface,

policies

government

admirably adjusted,
to the needs for stable growth and
unrivalled
prosperity.
If
pros¬

policies

seem

inspired by the
performance, by the disposi¬ perity is to be prolonged, public
tion
of the " Administration "and policies will have to be sensitively
Congress to reduce taxes as soon adjusted, not only to short-run
as
possible, and by knowledge fluctuations, but also to corrosions
1955

that

the

ready

Federal

to ease

credit if

more

keep the
"It

ried

is

Reserve

the

stands

availability

money

of

insidiously beneath the

on

surface.

V;;.;'

going full blast.
time to get car¬

A Look Back

economy
an

easy

have
been
away before, to lose bal¬
and perspective, to become
away,

as

we

carried
ance

going

is needed to

cocksure

careless.

and

A

sensible

"We

already have a bear
Back in 1953, a re¬

may

by the

tail.

strictive

credit

scheduled

policy, along with

curtailments

of

gov¬

ernment outlays and deferment of

optimism is an essential to pros¬
perity. Optimism running to un¬

reduction, burst a bubble of
overoptimism. In the 1954 business

controlled

recession

excess

has been

our

his¬

torical path to disaster. To be sure.

John B. Stetson Pfd.

Public Service Coordinated

tax

Huntington Hall Apts.

the

of

tistics for

subject

Exchange

N. Y. Phone

Teletype:
PH 375

►

COrtlandt 7-6814

brakes

until

summer.

policy

changes cannot be expected. Sta¬
and

Stock

reductions

"Perfect timing in credit

Pratt Read Co. Common

Phila-Balt.

tax

spending, and the Fed¬
eral Reserve
pushed the creditexpansion accelerator to the floor¬
board. The
easing back on the
accelerator
in
early
1955
was
gentle and lenders did not get the

Cambridge Bldg. 4s, 1963

Samuel K. Phillips & Co.

had

we

to support

feel

PtonsylvaBia Bldg„ Philadelphia
ATT Teletype

ex¬

were

present

Members

1914

Telephones:
NY-CO 7-1202

what

to

was

currently being withheld from standard
costly strike, issues pending the sale of Ford

favorite with

a

a

a

market

tent reinvestment funds

the

months

tions.

BOENNING & CO.
9

Ford Impact
The technical debate about

/■> the

.

Pocono Hotels Units

Kalamazoo Vegetable

STROUD & COMPANY

."f

t

Rebound

a

4s, 1990

Corp.

Parchment

New York

is

ber

been available at around its

1946

*

.

Westinghouse,

a

has

•'

embroiled in

good 1956 showing
Now
indications
are
for the company is a recent
profit was enough to price increase on its products
the dividend last year,
which hints at capacity pro¬
Favoring

heavy more times than cover
not with Chrysler
apparently which could mark the turn¬ duction for most of the year
a
pet selling target. Of all the ing point, particularly since if not all of it.
Earnings have
major segments of the econ¬ replacement demand for bat¬ been
moving steadily upward,
omy, this is the one that is teries from the heavy auto
prompting a higher dividend
widely regarded as due for o u t p ut, including the not rate
recently.
some sort of slowdown after
quite 8,000,000 cars made last
Dividend
Boost for Neglected
last year's wild pace.
The year, is starting to make itself
Blue Chip
imponderables include how felt.
the suppliers,
Another issue that, in the
such as the
The dividend specialty so
steel

been

_

year by confirming what a the most frequent
lot of the year-end forecasts is "a former blue
—

'

Ready for

make

to

seem

V"

possible,

are

Storage Battery, some eventual merger, on
description advantageous terms, all but
chip."
inevitable.
had indicated
The company ran into
it probably
Some attention was being
is going to be a difficult
year rough times after setting a paid the companies who have
to pick the right issues and sales peak in 1951 coincident
been dabbling in the uranium
a lot of
Washington develop¬ with the Korean war buying field, such as Climax Molyb¬
ments are going to measure splurge. Since then it has em¬
denum, to satisfy the de¬
up importantly as far as the barked on a three-year mod¬ mand
that
has definitely
stock market is concerned.
ernization program, retired its
turned against the prime ura¬
The principal reason for a only outstanding debt through
nium speculations since the
a

also

'

the

started

has

erty and while obviously not Safety.

STREETE

all of the links

Stocks

Modernization

desirable prop¬ pursued actively by American

But

are

developed
a

weeks

tentative

considerable

to

constitutes

recent

most

and

correc¬

momentum

problem.

The

most

threatening developments of 1955
were

the upsurge of

timism,
rise

business op¬
by the steep
prices and generous

dramatized

in stock

Continued

on

page

34

T'

Number 5496

Volume 183

The Commercial and Financial Chronicle

...

A Communist Trade Offensive?
By PAUL EINZIG

.■

^

London economist

with any

liberalization

.

capital

projects
building of the

such

—

the

as

Assuan Dam in
Egypt or the
construction
of

steel

a

plant in India
countries

—in

the

outside

C

o m m

unist

Group, at¬

Commu¬

possible defensive

East

causing

con¬

Washington

capital projects
would
greatly increase Russian
economic and political influence
of

offensive lies not

much in such

so

capital projects as in the possibil¬
ity of large-scale export of con¬
sumer goods by Soviet Russia and
countries.

satellite

the

Indeed, any Russian commit¬
ment involving the export of capi¬
tal goods to countries outside the
Communist group would present
considerable advantage from the
point of view of the free world.
In
spite of the spectacular in¬
Soviet Russia's

of

crease

produc¬

ing capacity, capital equipment is
none
too plentiful.
There is not
to meet the
Soviet Russias
of industrial¬
ization, let alone the insatiable
appetite of Red China. The more
capital equipment is exported out¬
of

enough

it

ambitious plans

Communist

side

the

less

will

be

.

world,* the

equipment

on

of capi¬

substantial

a

the

down

slow

scale-would

the

for

available

Communist world. Export
tal

ex¬

pansion of the productive capacity
The

world.

Communist

the

of

tinuing

gain of "neutral" countries would

potential enemy.

be the loss of the

to

consumer

goods, by simply con¬
deprive the domestic
of the supplies of such

Reid has qualified for retirement,

group

she will continue upon a consult¬

Communist

the

the

rules

of

the

guided by purely

in

the

if

ing

a

trade of¬

dumping

dustrial

of

exporters

the

democratic

the

countries

obtain

to

the

would

highest

is

Soviet

exporting organization to
a
profit on such transac¬

show
tions.

the

for

need

no

World

as

nomic

aggression.

membered

conquest
the

that

West,

Howe

fensives in

re¬

wars

Mr.

South

Eastern

the

ceeds

the

of

the

be

exposed

the

that

means

1929.

Nathan Krasner Opens
a

at

securities
100

York

42nd

ton

offices

Street,

fice.

the

in

undertaken

Imperialist
out

regard

to

siderations.

If

create

the

pursuit

politics,

power

which

the

of

politically

are

countries

their

in

camp.

commercial
Moscow

of

possibility of
in

fensive

consumer

As

a

goods

Soviet

form
on

of the

result

dustrial

Soviet trade of¬

a

the

of

dumping

the free world.
increasing in¬

producing
Russia

lies is in the

and

of

capacity
some

of

her

satellites, such as Czechoslovakia,
Poland and Hungary, the Com¬
munist Bloc may soon be in a
to export manufactures
large scale. It is true, de¬
for such consumer goods

position
on

a

mand

within

Communist

the

group

is

But a totali¬
tarian Government is in a posi¬
tion
to
continue
to
keep
the

virtually insatiable.

consumers

short

of

essential

goods.
In

a

democratic

country

any

Government which starves its own

cashire

in

the

dustry in

election.




Not

Association

and

Kreeger

office, he

Company

the

transferred to

was

During the

Officer

war

WALES, Fla.
&

New

have

—

Stock

York

opened

Exchange,

branch office at

a

he served in ; Park Avenue and First Street un¬
der the management of

Air Combat Intel¬

attached

Francis C.

Buchanan.

the

to

YORK

ASSETS

Cash

Vice-President

unless

they

should

State and

President

Stock

Bechlel Corporation

C.CABOT

of

President

On

suit

the face of it,

the

tures

for

to

the sellers

view,
be

a

to

manufac¬
consumer

them from

buy

prices.

Taking

broad

a

however, this appears to
very
short-sighted policy.

gains achieved in the form of
cheap goods would have to be
paid for through the weakening
the

economic

democratic

would

their

cause

employment
on

of

of

Any

their

the

the

Un¬

industries

would

industries,

of

spread

causing dis¬

content, and weakening the poli¬
tical
position of their Govern¬
ments.
Surely
this
would
be
against the vital interests of the
which

depend

on

the

strength of the democratic powers
their

Limited

and

purchased.

22,904,486
411,289,804

.

2,917,348

receivable, etc

3,000,000

Banking house

Liability of customers

S. CHEST ON

on

letters

i

15,378,365

of credit and acceptances
f

JOHN L. COLLYER

$975,031,827

Chairman
The B. F. Goodrich Company

LIABILITIES

R. DEUPREE

Chairman

1

The Procter & Gamble Company

$ 44,616,907

Deposits: U. S. Government,

744,923,690

All other

CHARLES D. DICKEY
Chairman Executive Committee

88,483,065

Official checks outstanding.

$878,023,662

N. D.JAY
Director

DEVEREUX

Accounts

Incorporated

7,313,726

payable, reserve for taxes, etc

Acceptances outstanding and letters of

C. JOSEPHS

15,525,820

credit issued

Chairman

:

Vice-Chairman

'

Surplus

THOMAS S. LAMONT
.

30,000,000

Capital—300,000 shares

New York Life Insurance Company

Undivided

\

very

existence

dependent countries.

as

in¬

30,000,000

-

14,168,619

profits

$975,031,827

R, C. LEFFING WELL
L. F. McCOLLUM

$59,494,179 in
qualify for fiduciary powers, to
public monies as required by law, and for other purposes.

United Slates Government securities carried at

President

the above statement are pledged to

Continental Oil Company

secure

GUSTAV METZMAN
Member Federal Reserve

JUNIUS S. MORGAN

sub¬

exports

payments.

in

concerned

other

of

deterioration

a

balances

directly

power

countries.

decline

stantial

Co.

Grenfell

who offer them at the

The

of

1,800,000

(including shares

Cie. Incorporated).

Accrued interest, accounts

Morgan &* Cie. Incorporated

countries

import

55,046,717

S. CARTER

Morgan & Cie.

appears

of

meeting their

requirements, to
lowest

it

interests

have

Morgan

Loans and bills

such

extent.

some

174,751,227

municipal bonds and notes

bonds and securities

Morgan

Stale Street Investment Corporation

defenses, to resist the Soviet trade
offensive to

$287,943,880

from banks

of the Federal Reserve Bank.

v

Other

years,

weaken

hand and due

United States Government securities

STEPHEN D. BECHTEL

RICHARD

the last few

on

Member Federal

System

Deposit Insurance Corporation

ALFRED P. SLOAN, JR.
;
i
Chairman
General Motors Corporation

JAMES L.

THOMSON

Finance Committee

Hartford Fire Insurance Company
GEORGE

\

MORGAN

$ CIE. INCORPORATED

14, Place Vendome, Paris, France

WHITNEY

JOHN S. ZINSSER
Vice-Chairman
Merck 6* Co., Inc.

Jones,

Hewitt, members of

Condensed Statement of Condition December 31,1955

I. C. R. AT KIN

CHARLES

of

Jones, Kreeger Branch

joined

After 10 years in the Bos¬

&

ARTHUR M. ANDERSON

BERNARD

a

the Bond Club of Chicago.

President

question.

during

for

the

1928

NEW

H. P. DAVISON

PAUL

is

Invest¬

former President of

J. P. MORGAN & CO.

export markets of the in¬

pursuing its power-politics would
at

a

He

the

to

industry, or in
some
other industry in a demo¬
cratic country, it will order the
dumping of the goods in question

public of much-needed goods for
the
sake
of exporting
them in
defeated

of

INCORPORATED

textile

countries

be

Harvard

Lines.

Bankers

LAKE

DIRECTORS

con¬

wants

unemployment in the Lan¬

which

Where the danger

Air

Governor

in

ligence

with¬

degree of defense in the form of
import restrictions,
quotas, etc.
They are therefore in a position,

resources

in

Sayles

the Navy as an

New

City.

will

risk of being
undersold by Communist exports

ex¬

and China, were to buy
less capital equipment from the
Western countries, more would be
available for the development of

He

Loomis, Sayles' San Francisco of¬

engaging in

business from

West

the

from

ministration

Loomis,

is

former

Graduate School of Business Ad¬

alone, Russian trade policies
watching.

Krasner

United

of

Co¬

America and

graduated

the

to

had been financial Vice-President

ment

Europe

returns

banking field follow¬
ing
several
years
in
financial
public relations, prior to which he

Ohio State University in 1926.

well worth

Nathan

in

up

Newey

investment

lumbus, Ohio and, graduated from

From this point of

the

to

producing capacity of
countries.
If India,

Egypt

Mr.

in Washing¬

exporters

countries

democratic

trade

equipment

the

vice-president

grew

Newey With

Chairman

This

most countries have retained some

Western

Marshall

of

preceded, during
by such trade of¬

and elsewhere.

view

It will be

C.

D.

Bache in Florida

Miss Florence O'Don-

and

and

until

PETERSBURG, Fla. — Ap¬
pointment of John W. Newey as
manager
of the St. Petersburg,,
Fla., office of Bache & Co., 556
Central
Avenue, has been an¬
nounced by Harold L. Bache, se¬
nior partner of the firm.

.

IIE.YRY C. ALEXANDER

quantity.

the

speaking,

such

of

request
-

regional

as

of

ST.

M. Robert Deo, Frederick E.

ton.

were

'thirties,

they are instructed to
in pursuance of a trade
offensive, they will cut prices un¬
til they can export the required

made towards the liberalization of

for

demand

»«

If

Western

the

the

at

■;

with his headquarters

countries

Hitler's

export,

whole would not lose

Generally

it.

by

a

capacity

to

official

Owing to their system of free
trade,
the democratic countries
would
be
largely
defenseless
against such a trade offensive.
Fortunately for them, even though
considerable
progress
has been

equipment,

capital

Francisco

that

moved

John

Richard N. Taliaferro will con¬

Chairman

individual British or
American engineering firms would
naturally deplore the loss of con¬
tracts, as a result of the Soviet
trade offensive in the sphere of
Although

San

in

tighten their economic de¬ noghue complete the counselling
fenses against such an act of eco¬ staff in Washington.

possible

There

in

must

wish

prices for their manufacturers, if
Moscow should decide that larger
quantities
of
them
should
be
thrown on any particular market
then
considerations
of
price
would
play
a
secondary
part.

1943.

basis

tinue

Although it is natural that the
Communist

since

firm.

Rus¬

of

on

form

game

commer¬

But

counselor

head
Washington of¬
Although Miss

the

office

&

Washington,
during the past summer.

as

fice

in

Francisco

Sayles

continued
he

who has been manager and
counselor

Japanese

of

pro¬

considerations.

then

Mr.

the

Company. In
1950 he became manager and head

succeeds Miss Doris Fielding Reid

large quantities of eon su m e r
goods on the markets of the in¬

are

goods.

even

of

requirements
own

consumer

Yet

concerned.

Communist trade

a

group

Middle

where it is feared that the execu¬

countries

Communist

that the

sense

office.

Loomis,

its
Marshall

charge

non-strategic goods,

that

fensive

Washington

in

After

San

the

to

great deal to be said
expansion of East-West

observes
and is

Vice-President

a

sia should embark

des¬

a

spite of the great domestic need
for these goods. It will be possible
for the Soviet Government, should
it wish to do so, to export large
quantities
of textiles
or
other

and elsewhere

vided

ment of John Fellows Marshall

measure

trade offensive, and
preparations well

a

owing to the existence of

in the

and

an

trade in

take

actually materializes.

There is
for

to

their

make

to

before it

cial

fensive

Einzig

menace

of

state

a

against such

semi-starvation. This was possible

exported timber, oil and grain, in

trade

tion of such major

the

in

kept

were

Russian

of¬

is

the

people

the

that

was

prospects: history has repeated itself, in the

a

nist

in

result

the end of the Second World War

of

London

The

the free world.
The

in

regime it was an under¬
thing for RussiSTto overexport grain for the sake of main¬
taining the service of the external
loans
contracted
for
financing
military preparations and the con¬
struction
of
strategic
railways.
stood

in

attention

cern

Tsarist

potic regime which did not de¬
pend on a majority vote. Since

much

tracted

Paul

Already under the

countries

democratic

every

in Russia.

It is to the interests of

policy.

the

Fleet.

surrender, Mr. Marshall returned

WASHINGTON, D. C.—Loomis,.
Sayles & Company, one of the
leading Investment Counsel firms
with
headquarters
in
Boston,
Mass., has announced the appoint¬

through the continuation of such
a

Hitler-like attempt to weaken democratic countries.
so

Third

Of Loomis, Sayles

;

F. Hal-

in the South Pacific and the

sey

be

ideological free-trade
dogmatism. The Communist world
would
be
the chief beneficiary

capital goods in export market a threat
of free trade trend to cope

LONDON, Eng.—Recent Russian
offers
of
undertaking
various

should

staff of Admiral William

J. F. Marshall V.-P.

the time for

Advises adjustment

world.

to free

Having regard to the possibility
Communist trade offensive, it

trade

_

prospect of dumping by U.S.S.R. of

sees

rather than

consumer

of

halted if not reversed. This is not

v

•

(73) ;11i

MORGAN GRENFELL

8f CO. LIMITED

23, Great Winchester Street, London E. C. 2,

England

13

The Commercial and Financial Chronicle..

(74)

Mr. Sargent is
bank's Domestic
Department and his territory will
include Pittsburgh and Philadel¬

CLINTON

house & Company.

assigned

News About Banks

the

to

Total

Cash

phia.

BRANCHES

NEW

OFFICERS, ETC.

Total

Alex

H.

Columbus

The

Circle.

location

,

Sands,

will become the main office of the

the

banking institution when the 26story office structure is completed
in April as part of the $30 million
New York Coliseum project of the

Jr., have been elected to
Advisory Committee of the
of

Board

Chemical

of

Directors

Bridge and Tunnel
According to Edward

Triborough
Authority.
E.

Vice-President,

McNally,

the

and

ft. on.the ground floor,

sq.

mezzanine, and second floor with
street frontages on both Colum¬
Circle

bus

and

58th

West

fc..

b.ack

H.

Alex

Sands, Jr

$1,500,000 in rentals to be paid
over the period.
A feature of the
interior layout will be the placing
of

Corn

Exchange

York, it

Bank

of

announced

was

New
Dec.

on

30, by N. Baxter Jackson, Chair¬
Mr.

man.

The

Black

Home

Mr.

is

President

insurance

Sands

is

of

vaults

bank

of

instead

and

officers

other

merous

directors

and

nu¬

organizations.

*

*

CORN

EXCHANGE

NEW

OF

NEW

Sept. 30, '55

$
Total

Deposits
and

S.

Govt

loans

&

Undiv.

967,546,895

723,899,789

506,550,128

563.300.501

se¬

discts.

1,306,904,413 1,222,789,664
22,304,883
20,062,030

profs
X

that it has opened a new overseas
branch in Jeddah, Saudi Arabia.
It

is

stated

branch

of

Arabia

and

that

it

is

becomes

The

offices,

bank's

cf many

Government offices and

NEW

The

Tranches

bank

Total

resources

Deposits
Cash

Cairo, Egypt,
and
Beirut,
Lebanon,
during
1955.
Chester B. Grant, who has served
jh the bank's overseas division
since

1926, is the Manager of the
branch

r.ew

which

is

located

on

Dec, 29

on

$
118,369,533

109.022,886

80,780,124

74,432,737

15,676,299

12,480,085

holdings-—

46,553,091

4i.705.45t

discounts

25,592,590

22,515,121

&

Loans

profits

SCHRODER

*

&

Loans

$69,000,73 7.

64,680,591

62,186,375

14,459,274

12,136,733

and

43,434, 329

40,568,336

12,740, 460

15,369,891

2,600,796

2,575,581

of

of

Representative

a

Manufacturers

Trust

Company of New York in Frank¬

pointments of M. Gardner Patrick

furt

John

E.

and

Cashier.

Bieber, Jr., as Assistant
Both are assigned to the

Oveseas

Division

head

office

THE

in

FIRST

the

at

New

NEW

CITY

BANK

YORK

Dec. 31, '55

Sept. 30, '55

$

Total
1

resources.

from

r.

S.

banks—
Govt,

curity
Joans

Individ,

BANK

1,513,595,324

3,184,559,907 2,792,332,080

profits

60,006,869
'

*

FARMERS

TRUST

Dec. 31,'55

Total

resources

Deposits
Lash

—

&

due

Govt,

S.

rity
Loans

$

Undivided

199,728,734

146,279,670

160,441,391

108,419,882

60,136,284

32,360,995

secu¬

105,158,048

79,689,289

discounts

3,125.293

4,367,796

profits—

12,439,737

12,079,526

*

*

1,

Federation

J.

H.

Rossmarkt

Jebsen,

the an¬
For many years

Tower

bring the total number
company's overseas repre¬

sentative offices to four.
/.

*

-

&

Trust

Building




at

10

*

of New York,

was

$

1,564,718,837
1,388,553,094

506,916,880

403,408,164

President.

Mr.

service

Prior

to

of

the

bank

in

Manufacturers
Trust Company he was associated
with the W. R. Grace &
Celanese

Roger

Steffan.

a

Lank

Dec.

on

Vista,
63

New

ox

27, at his home

Calif.

He

would

cf age

years

have

Jan.

on

the

to

Yotk,

New

29,

York

resources——

Dec. 31/55

Sept. 30/53

s

$

—

870.655.005

781,191,535

772,631,324

687,053,218

from

253,973,151

187,098,911

secu¬

177,777.707 190.524.846
holdings—
&
discounts 401,531,649 364.525,786

rity
Loans

Undividend

profits

THE

to

too, that in addition

being the pioneer in the Per¬

sonal

Credit

also

was

Field, Mr. Steffan
charge of the bank's

in

interest

compound

department,
(or savings department), and was
also in charge of time contracts.
the

In

New

York

Dec.

28

it is noted

tion

to

his

Steffan

had

that

held

went

say:

to

December of

"in

of

addi¬

Mr.

career,

two

posts."

on

"Times"

banking

Government

important
"Times"

The

"From

July

1934, while

to

leave

on

City

he

Bank,

served as director of
modernization credit for the Fed¬

Housing Administration, and
the country popularizing

toured

the

Government's

home

for

program

improvement

BANK

OF

leans.'

Tuo

continued.

Sept. 30/55

Cash

&

due

570.258.064

517,786,008.

511,630,469

462,361,651

secu¬

holdings—_ 120,123,194

Loans

&

THE

110.545,119

discounts

249,222,433

218,301,690

profits—

6,826,642

6,525,743

MARINE

MIDLAND

NEW

OF

TRUST

to

also

the

President.

referred

to

CO.

appointed

him

ta

sion

fore

retiring

received

two,

1923-25,

business

extension

504.585,726

ant

Vice-President.

492,904,770

455,440,310

moted

153,644,531

129,016,994

rity -holdings- 108,366,561

114.425,928

S.

Govt,

Loans

secu¬

Undivided

profits—

7,821,460

8,005,819

to

OF NEW YORK

Dec. 31,'55

135,724,883

50,867,024

36,218,282

42,584,184

45.587,842

discounts

63,755,629

57,938,505

profits—

1,372,709

1,760,331

due

U.

S.

rity
Loans

Govt,

&

*

THE

STERLING

TRUST

Total

COMPANY

resources—

Deposits

—

due

&

S.

rity
Loans

OF

BANK

NEW

furnish

to

Hill

$

153,750,292

151,421,505

141,637,994

132,587,237

Treasurer

cf

Hill, who has been

his title of Assistant Vice-

and

the

Vice-Presidents

Assistant

meeting.

same

were

Mr.

&

discounts

68,958.214

81,430,452

with

profits..

1,662,928

1,631,901

an

>

Sept. 30/55

S

$

3£th Street,

&

due

59,915,342

45,219,733

48,638,801

48.295.413

secu¬

rity holdings—
&

191,553,768

from

banks
Govt,

210,919,640

discounts

Capital surplus

;

7

65,059,610

14,485,284

14,465,284

'

bank

since

department;

of

Committee

Executive

the

New York

State Safe

sociation.

Paul

the

F.

Deposit As¬
McGuirk, As¬

sistant Manager at

the Bay Ridge

office and Edwin P. McGuirk, As¬
sistant

Flatbush Of¬

at

Manager

fice, brothers, received simultane¬

promotions. All are members
Savings Banks Officers As¬
sociation, Group V.
ous

cf the

*

x

of

Office

The

Comptroller

the

of the Currency announces

& Trust Company

Bank

tional

that

as

the Valley Stream Na¬

of Dec. 20

of

Valley Stream, Long Island, N. Y.,

capital from $660,000

increased its
to

$693,000 by

stock dividend of

a

$33,000.
x

x

x

BANK OF WESTCHESTER,

WHITE,PLAINS, N. Y.

Total

Dec. 30/55

Sept. 30/55

132,805.515

132,952,977

119,616,382

119,974,863

resources

Deposits
and due

Cash

from

discounts

&

I cans

Undivided

The

12,273,275

41,468.808

41,185,652

49,987,715

52,841.675

1,733,037

1,712,145

profits—
*

*

of

14,353,610

security

holding;

X

National Bank

Waterbury

Conn.,

Waterbury,

the death of Leroy S.

Fresident,

announces

Andrew, its

Dec. 10.

on

X

X

X

The First National Iron Bank of

Morrisiown,

J.,

N.

increased

has

capital, effective Dec. 21, from

$800,000 to $1,000,000 as a result
of

stock dividend of $200,000.

a

*

*

BANK

FIRST NATIONAL

AND TRUST

COMPANY, PATERSON,

Cash

—

due

&

J.

June 30, '55

S.

Govt,

discounts

&

Undivided

215,765,865

36,300,523

33,562,202

secur.

holdings
Loans

216,698,847

from

banks
U.

N.

'55

resources—-$234,365,142 $232,816,962

56,672,787

57,806,633

49,671,310

47,685,265

4,091,094

3,818,592

profits.

xxx

THE

PHILADELPHIA NATIONAL BANK,

PHILADELPHIA, PA.

resources.

Deposits
Cash

S.

curity

X

X

Bancroft, President
of Excelsior Savings Bank of New
S.

announced

on

917,192,248

322,565,199

327,435,705

due

se¬

hold'gs

171,861,981

179,198,240

discts.

418,121,229

382,811,869

profits

15,741,140

14,480,544

&

Undivid.

X

1952,

Madison Avenue at

which opened in May
j|S

910,011,851

banks—
Govt,

Loans

$

1,021,109.311

—

and

from

U.

Over
of

the

The

Bank

Dec. 28 the

following changes in the official
staff of the bank, effective Jan. 1:

June 30/55

$

1,026,343,207

1916, and

of the bank's Murray
on

Dec. 30/55

Total

X

year-end

Market

and

the

was

the merger

Street

National

Tradesmens Bank

and Trust Company

adelphia
•

Francis

York,
68,092,315

since

1954.
•

——

Union Dime

Assistant Secretary since

YORK
Dec. 31,'55

the

joined

is manager
Hill Office

CO.,

the

of the Main office depositors
he is a member of

ager

Ham¬

33,947.691

secu¬

242,542.471 225,002,701

of

Kelly is Assistant Man¬

Hammarlund

Zilliakus

G.

Herbert

elected
at

W.

Howard

41.481,897

Deposits'

Mr.

1943.

Total

holdings-

resources

Alduino, has been
the Graham

office

Dec. 31,

bank's staff
in 1926, and in 1950 was made an
Assistant Secretary. Mr. Zilliakus,

&

Mr.

Dime since 1929, will

with Union

marlund

HARRIMAN

bank.

Avenue

small

meeting of the

elected

was

Mr. Kipp, is

manager.

Assistant Manager at

Savings Bank of New York, Ross
the bank.. Mr.

Main office

the

to

went
as

Manager of the Flatbush office of
the

com¬

*

*

At the December

from

NEW

Loans

bank

major

Board of Trustees cf Union Dime

1949.

$

'

S.

personal credit de¬

*

YORK

Sept. 30/55

BROTHERS

he

1950,

loans to individual borrowers."

#

U.

1929.

32,400,537

BROWN

Cash

in

38,231,341

Govt,

in

President, which he has held since

&

Dec. 31,'55

:

Undivided

Total

the

thus became the first

retain

*

NATIONAL

until

pro-'

partment of National City, which

D.

secu¬

holdings

Undivided

was

from

banks

charge of the
depositors depart¬
ment, he was formerly Assistant
Manager cf the Flatbush office
Office

Deposits

159,041,477

141,848,565

—

&

He

$

174,441,722

resources

Bundrick is in

Assist¬

an

Vice-President

Sept. 30/55

$

Cash

made

was

May, 1928, Mr. Steffan es¬

mercial
GRACE NATIONAL BANK

Mr.

its

"In

tablished
261,582,295 241,263,652

office of

Erooklyn, the Broadway Mer¬
Commerce, etc.

U. 3. Govt,

from

discounts

&

1926,

Mr.

of the Wil¬
The Lincoln,

member of the Eankers Club

a

of

B.

head of the
depart mert,

as

544,486,341

U.

A.

an

tional City Bank in 1919, he spent
four years as Educational Direc¬

in

banks

is

Alduino,

McGuirk.

manager

banks

degree from Ohio State University
in 1913, and then spent six years
in journalism. Coming to the Na¬

and

due

be¬

months ago.

some

Steffan

For¬

on

his last post

was

$

&

J.

As¬

Edwin P. Mc-

F.

Economic

Nationalist China

This

Sept. 30/55

Cash

liamsburg

May, 1954, President E'sen-

$

Deposits

Eaumeister,

NATIONAL

"In

tor;

YORK

Paul

from

Martin

Kelly,

Office.

Dec. 31/55

resources

Ee

Director

as

cf Operations for the White House

"Mr.
171,657,094 159,937,017

Govt,

S.

rity

special assistant to the

was

Assistant

from

banks

U.

tration

mosa.

J

promoted

were:

J.

Guirk and

ccinc'dent

1853,

Adviser to the United States mis¬

YORK

$ r
resources

January,

hower

NEW

Also,

x

"In

8,085,714

7,798,364

Dec. 31/55

Total

Ray¬

Bundrick and Charles

Main

is learned

wis

banks
Govt,

Eaumeister,

Harry
I.

mond

It

THE NEW YORK TRUST CO.. NEW YORK

S.

ant Vice-Fresidents to Vice-Presi-

aents;

chants Chamber of

City, Mr. Steffan went to Wash¬
ington, and during the first three
years of the Eisennower Adminis¬

Company,

Corporation of America,
and Management Advisory Serv¬
ices—a suosiaiary cf Price Water-

cf

City

rimes"

1955.

joining

death

with his retirement from National

U.

following promotions at its
meeting: From Assist¬

"Times,1' which
noted
that
he
organized
and
developed
the
tank s personal credit department.

se¬

announced

Flanigan,
Sargent entered

13,^98,0j6

'

banks

Dec. 30 by Horace C.

3^,3/6,b4/

14.xt8.6i9

—

21,772,663

U.

on

151,136,427

4„1,28.j,804

promts.

21,431.632

x

dent of Manufacturers Trust Com¬

174,751,227

di.cti._-

profits

Cash

appointment of Daniel I.
Sargent as an Assistant Vice-Presi¬

the

Presidents

eral

s

due

due

The

of

of Brook¬

Bank

December

318,888,642

<fc

Savings

177,735,376

723,410, J 21

Cash

Lincoln

lyn, N. Y., unanimously approved

723;532,526

Total

x

Trustees

7J2,„69,o40

395,422,004

Undivid.

of

Board

8 (o.Oi.3,662

discts.

&

The

287,343,880

holdgs.

curity
Loans

The

pany

Sept. 30, '55

1,553,167,779
banks—

Govt,

S.

YORK

1,733,100,505

will

of the

%

Bank

Company of New York, Thomas J.
Hhanahan, President, has leased
through the Charles F. Noyes
Co., Inc., banking quarters in the
Coliseum

U.

it opened one in Rome,
Thus the Frankfurt open¬

Italy.

the
The

from

1955,

•

from

holdings
&

at

23,
and the representative in charge

ing

■V'vT
CO., N. Y.

Sept. 30,'55

$

banks

IT.

57,475,822

*

and

Cash

in London and Tokyo, arid on Oct.

discts.

resources-

Deposits

located

be

NEW

COMPANY,

Deposits

Total

be

1.616,567,604 1,457,015,975

*

CITY

Total

x

COMPANY,

cf absence from the National

will

Manufacturers Trust Company has
maintained representative offices

1.319,313,958

23,121,419

TRUST

charge
of
its
International
Banking Department. The office

nouncement said.

se¬

holdgs.

&

by Horace C. Flanigan, Presi¬

dent of the company, and Andrew
L. Gomory, Senior Vice-President

will

$

due

and

476,863,440
752,453,400

24,441,990

IRVING

Main, Western Germany,

7,001,296,521

6,703,126,941
6,308,783,237 6,014,718,380

-eposits

Lash

29

811,666,862

in

York.

NATIONAL

OF

bank's

am

Jan. 2, was announced on Dec.

on

441,079,708

discts.

profits

undi¬

Opening

Vice-President

478,116,357

se¬

holdgs.

&

Undivided

profits

Office

577,057,988

due

banks—
Govt,

Undivid.

Total

£

1,839,137,611
1,641,155,840

secu¬

discounts

&

YORK

Sept. 30/55

holdings

Surplus

NEW

$71,583 244

from

due

Govt,

rity

CO.,

Dec. 31 ,'55

banks
S.

and

from
S.

1,754,133,876

Deposits

TRUST

Deposits

U.

5,001,511

5,009,920

resources

Cash

Cash

was

Thomas

June 30/55
$

1,958,971,124

resources-

undi¬
*

Total

Total

YORK

NEW

BANK,

*

New York, has announced the ap¬

Assistant

IIANOVER

46,797

secu-

and

vided

The First National City Bank of

as

THE

Deposits

Sept. 30/55
$

—

Govt,

S.

rily

CORP.,

BANKING

from

due

banks
U.

King Abdul Aziz Street.
X,

profits

of

YORK

—

&

opened

at

Undivid.

46,040,092

*

?

National

also

Henry

Company

Dec. 31/55

City to be opened in the Middle
East.

J.

Corporation

*

SCHRODER

HENRY

vided

First

1*429,880,789

033

&

Dec. 31, '55

of

Trust

*

Sea port of Saudi Arabia. It is the
of

733,770

bel, who joined the banks in 1949,
is
Manager of the Commercial
Departments.

Surplus

branch

1,402,989 078

463,761

holdgs,

*

appointment of John Roebel
Assistant Secretary. Mr. Roe¬

departments and is the main Red
third

32,300,554
41,051,403

New York, announced

the

announce¬

ment states that Jeddah is the seat

35,763,324

43,470,682
753,721

Banking

Schroder

of

and

$

discts,

Loans

*

in

66th

Sept. 30. '55

572,550,905

11,070,886

directors

only

bank

the

branches,

affiliates.

profits—

Schroder

J.

the

American

an

First National City's fully staffed
overseas

discounts

&

and

as

The First National City Bank of
New York announced on Jan. 3,

31, •55

437,921,397

Loans

Secretary;

Rudolph, elected Comp¬
formerly Assistant
Comptroller.

troller,

tional

been

I

se-

X

&

Sec¬

and

formerly

secu¬

according

YORK

NEW

,

676

16,430,816

1,220,296

former Vice-President of the Na¬

in

X

CO.

815,661 621

banks—
Govt,

S.

curity

&

occurred

2,784,756 324 2,585,410.301
2,494,481 ,068 2,286,493,790

-

from

U.

1,238,256

from

holdings

The

due

and

due

Govt.0

S.

rity

107,147,824

105,598,953

TRUST

-posits

&

Undivided

735,634,307

$

85,371,872

was

Martin J.

X

banks

1,498.760,285 1,437,173 3 j's

resources-

Cash

Cash

627,019,873

829,757,187

Dec.

Total

96,532,514

Vice-President

retary,

11,123,945

sistant Cashiers to Assistant Vice-

X

U.

elected

11,343,485

Kipp.

profits

EANKERS

1st

Comptroller; E. Ames Bleda,

11.757,078

MORGAN

Deposits

$

671,504,054

discos.

&

P.

1st

Treasurer,
Vice-President

?,714,389,962 2,533,180,423

holdgs.

Undivid.

formerly

was

elected

and

13,771,811

INCORPORATED, NEW YORK
Dec. 31, '55
Sept. 30, '55
resources-,—$975,081,827 $79 J,321,2 io

Loan;

Sept. 30, '55

Billhardt,

x

YORK

NEW

OF

31, '55

P.

Vice-President

and

X

J.

se¬

Deposits

secu¬

holdings

The

curity holdings

Loans

D

9,402,870

John

3,190,927 627 .2,998.537,607

banks—
Govt,

curity

*

due

from banks

0.

Govt,

S.

Loans

Undivided

$

S.

curity

from

due

&;

3,156,073,953 2,904,650,566
2,896,012,946 2,634,063,699

resources-

Cash

U.

CO.,

TRUST

ANI)

Dec, 31/55 Sept. 30,'55
$105,525,190 $94,211,15)3

resources

rity

31, '55

_i
and
due

from

undivided

U.

Dec. 31/55

YORK

Deposits

YORK

Dec.

resources-

Deposits
Cash

&

45,281,587

$

*

BANK

FEDERATION

Cash

BANK

by

758,495,911

s

banks
CHEMICAL

an

CO.

Dec.

U.

32,007,154

8,132,356

profits

992.177,259

X

X

TRUST

GUARANTY

parking garage.

Total

of

necessary

1,058,200,319
47,611,046

utilization of the basement as

the
a

director of Duke Power Company.
Both Mr.
Black and Mr. Sands
are

basement,

made

arrangement

uompany;

Vice-President

the

in

769,017,430

discts.

profits
X

Total

Surp.

Tctal
■

the mezzanine

on

se¬

holdgs.

&

discounts-

791,030,753

1,024,445,016

ard

involves, it is said, approximately

Kenneth

curity
Loans

Street.

The lease term is for 20 years

Govt,

Undivid.

Noyes

will occupy

bank

the

Company,
12,500

of

Farrell

J.

Thomas

S.

U.

&

due

banks—

from

and

33,999,884

—_

Loans

2,956,161,715 2,667,938,50/

—

and

Cash

Black

$34,766,025

-

3,209,712,518 2,925,574,955

resources.

Deposits

Y.

Sept. 30, '55
S -:■ ■■■■'

$

s!

N.

CO.,

Dec. 31,'55

CAPITALIZATIONS

YORK

Sept. 30/55

U. S. Govt, security

TRUST

MANUFACTURERS

Bankers

and

REVISED

E.

-

NEW

Dec. 31/55

$36,766,031

f.om

due

and

banks

holdings

NEW

COMPANY

Deposits

CONSOLIDATIONS

Kenneth

TRUST

resources-—

.Thursday, January 5, 1956

both of Phil¬

completed

and

the

merged bank, retaining the name
of Tradesmens Bank and Trust
Company, opened for business
Jan,

the

3.
two

The

combined

banks

as

of

assets
Dec.

on

of

31,

Number 5498

Volume 133

The Commercial and Financial Chronicle

...

(75)

amounted to $307,502,000 and total

the two institutions.

New

deposits $272,769,000.

R. Livings¬
ton Sullivan, President of Market

provides

our

Street National Bank is Chairman

capital stock of Provident Trust
Company for each share of $30
par value capital stock of Ambler

Sullivan Jr., President
Crocker First National Bank

Trust

27

the

of

Board

bank,

of

Percy

the

C.

combined

Madeira,

Chairman of the Executive

'mittee, James M. Large,
dent

Warren

and

H.

Jr.,
Com-

Board

of

both

b

e

urn

White,

As

are

George

Widener, Howard A.

subject

the

of

banks

the

to

stockholders

and

the

of

necessary

regulatory authorities.

Directors

Wolf.

Dec.

31,

Provident
total
re¬

1955,

York

J.

San Francisco, announced
the

bank

Oakland

office s i n Media,
Springfield and
Providence, D e law a r e
County.
Under the plan,
Mr.

moted

phia,

has

S

thm ore,

w a r

from

Assistant

Trust

of

office

Ambler

the

President

Vice-

as

Trust

Provident

of

become

the Provident organ¬

Company
•at

Prospect

of

dent of First National Bank in St.

Philadelphia

Bank

Interboro

and

and

Trust

Park,

Pa.,

Dec. 30, approved the joint
plan of merger heretofore agreed
to by the directors of each bank.
When the merger is approved by
supervisory authorities and be¬
comes
effective, it will increase

on

of Broad

number

fices

to

Street

Mo.,

bank's

retirement

Welch
an

as

his banking career
office boy in the transit de¬
began

State

Of¬

Co.

of

announced

on

Trust

Mawr

Pa.,

Mawr,

of

Harold

E.

the

He
Treas¬

in

urer

in
in

October,

Treasurer

1945,

April 1951 and Vice-President
December, 1954. He is Secre¬

tary of the Montgomery
.Bankers Association. Mr.

County
Draper

joined the Trust Company in 1938
and was elected Secretary in 1939;
following his discharge

from the

Air service in February
■1946, with the rank of Major, he
returned to the bank and again
•became
Secretary of the Com¬
Army

In April 1951 he was elected
Trust Officer.
Mr. Draper is a

pany.

member

Philadelphia Bar

of the

the Committee on
Law of Decedents and Trust Es¬
tates of the Pennsylvania Bankers
and

on

serves

Mr. Campbell, a na¬

Association.

Scotland, came
to
this
country
in
1910
and
settled in Philadelphia. From 1918
tive

of

Glasgow,

of

also

a

Credit

the
Welch

later

became
to

From

Treasurer.

1946 he was with the De¬

partment of Banking in Pennsyl¬
vania and joined the Bryn Mawr
Trust on April 1, 1947.
In 1949
he was elected Assistant Treasurer
of the company.
*

of Robert

He

Associates.

in

Institute
Banking and he is also a past

of

bu¬
of the St. Louis Association

reau

credit

of

adjustment

the

of

President

men.

man

•

Citizens

The

tional

Na¬

Southern

&

Atlanta,

of

Bank

of¬

Ga.,

New

ficially opened on Jan. 3 a

office, it was an¬
nounced
by C. & S President,
Mills B. Lane, Jr.
Located at 500
service

York

Fifth

the

Avenue,

activities of the bank

New York
will aim at

R.

Ambler

Scherff, President of
Trust

Company,

bler, Pa., announced on
their

Western's

of Am¬

Jan. 3 that

respective boards of direc¬

tors had

approved

a

plan to merge




first

of¬

though
area

it

and

Southern
at

South

Actual

has
is

in

one

the

preparing to

California

open

—

Walter J. Mahoney and Oswald D.

speaking for Republican members of the

New York State

of

a

Legislature.

the

building will not be started

until

approval has been received
Federal

At any rate most

we

doubt it.

politicians, Republican and Demo¬

new

bank

the

professions of paternal collectivism may be

politically advisable these days, but

Streets.

Spring and 6th

construction

Such

office

enterprise.

enlightened business and industrial

Watts

main

free

made in many

Heck,

This

of

system

in this direction already has been

fice in that section of the city, al¬

cratic, state and national,
Can

Deposit Insur¬

we

not somehow

istic notions out of

Corporation.

our

to

seem

suppose so.

get these essentially social¬

system?

FEDERATION BANK AND TRUST

COMPANY

Thomas J.

34th Street and Eighth Avenue,

And

the Coliseum, 10 Columbus Circle, New York.

'

.vVJ/

.

York, N. Y.

41-84 Main Street, Flushing, N. Y.

/

about March 15,1956, a new office in

on or

Member Federal Deposit Insurance Corporation, Federal Reserve

;

Shanahan, President

New York, N. Y.
Six East 45th Street, New

;

System

COMPARATIVE STATEMENT OF CONDITION

December 31,1951

December 31, 1955

RESOURCES
and Due from Banks

U.

Government Securities!

S.

and intensifying the
development of Georgia. It also
will assist its 600 Southern bank¬

Securities-—'

Accrued

Interest

Furniture

and

Customers

ing correspondents with their busi¬
in the North and East. The

ness

office of the Citizens

new
ern

& South¬

National Bank is the first op¬

eration of its kind

Receivable

—

established by a
and says the

Credit and

Acceptances.

both

and

marketing

production

50,157.49

$105,525,189.83

$93,140,484.33

$3,480,000.00
3,080,000.00

$2,900,000.00
2,500,000.00

753,721.09

630,565.77

15,501.28

10,070.43

433,032.89

342,169.12

Capital Stock ($10.00 Par Value)

'—

Surplus
Undivided Profits

.

Taxes, Interest and

increased

308,577.56

44,370.76

LIABILITIES

Reserve for

panding Southeastern markets. A
growing number of New York
area businesses, it is stated, have

216,697.79

637,034.16

-

Other Resources

bank, ''will provide a needed fi¬
nancial link" between the finan¬

of the U. S. and ex¬

268,023.40
r

Liability Account of Letters of

Contingencies—

capital

162,000.00

28,772,974.33

'

302,629-46

Reserve for

cial

2,588,108.78

333,217.26

_|_

;

bank,

Southeastern

6,817,002.87

2,105,196.93

43,470,681.77

(Less Reserves)

Fixtures

6,241,119.74
196,800.00

Stock in Federal Reserve Bank of New York—
Loans and Discounts

34,831,978.70 *

35,763,323.71

Municipal Bonds (Less Reserves)
Public

$19,324,963.41

$16,430,816.04

Cash

Accrued

:

Expenses

164,838.88

391,509-38

Discount

Unearned

96,532,513.77

Deposits

,

86,246,667.44

Acceptances Guaranteed for Customers
and Letters of Credit Outstanding

637,034.16

Other Liabilities

201,877.26

37,595.13

$105,525,189.83

$93,140,484.33

Lane pre¬
S plans to en¬

■

■■■:'■■ 4 v-i''

308,577.56

Southern business, Mr.

The

dicted.

C &

DIRECTORS

this trend by making its
of Southern banking experi¬

courage

years
ence

more

Northern businessmen

National Bank has $25 million

capital

and

surplus.

With

American Federation of

Treasurer, Tully & Di
;

.

MAX

Georgia

affiliate

Musicians

Fxprutivp Vifp Prpsidpnt

Federation Bank and Trust Company

ftSWi

™°»S J- SHANAHAN

President, Federation Bank and Trust Company

MCCARTHY

President, New York City

Omnibus Corporation

JEREMIAH D. MAGUIRE

Com¬

are

funds of

Federation Bank and

$35 million. The plans to

open

the

Meadow & Mann,

"LARGE

ENOUGH

TO

Trust Company

ALL

GEORGE E. SPARGO

General Manager and Secretary
Triborough Bridge & Tunnel Authority

Attorneys

HANDLE

GEORGE L. SMITH
President and Treasurer

G* R. Kinney Co., Inc.

Chairman of the Board

$461
over

Corporation

PINARD L. R0RABACK

JACK MEADOW

banks

JOSEPH REILLY
Chairman of Board, Electrographic

.

Napoli, Inc.

LOUIS GEBHARDT

in

over

bined deposits of its 22 offices and

million with capital

WILLIAM B. 0AKES
Treasurer, Charles Francis Press

Hh-.tFOfLEY

JOHN E

in the nation.

Inc.

Architect

$390 million in deposits, it is said
to rank 57th

,

President, Brennan & Sloan,

VINCENT P. Dl NAP0LI

in the

The Citizens and Southern

MICHAEL J. MERKIN
President, M. J. Merkin Paint Co., Inc.

WILLIAM R. BRENNAN
EDWARD CANAVAN

investigat¬

possibilities

'

5

to

available

readily

■

and

George

the

progress

accelerating

*

K. Mitchell, Chair¬
Benjamin F. Sawin,
President of P r o v ident Trust
Company
of
Philadelphia, and
William

man,

First

be

Dec. 20.

on

matchless

operations."

of the bank's Board of Direc¬

Other

*

*

*

South.
,

among

for

was

instructor

an

years

ing investment
*

Much

office in the Santa Bar¬

Associa¬

investments in these
markets. National com pa n i e s
to 1931 he was with the United seeking new markets and produc¬
tion
facilities will be a major
Security Life Insurance & Trust
factor in the future growth of
Co. of Philadelphia, of which he
.1931

America's

permission from the

Men

President

past

many

S.

Assistant

tion

Morris

Officer; and Hugh

appointed

co-ordination

credits for the American

William A.
Draper,
formerly Secretary and Trust Of¬
ficer who was elected Vice-Presi¬

Company in September 1922.

approach to this broad economic horizon

Federal and State Governments and the leaders of

Superintendent of Banks to

and a past
national director for the National
Association of Credit Men.
He is

Secretary;

'was

Trust

and

Mr. Welch is a past

President of the St. Louis

formerly

Campbell, formerly Assistant
Treasurer, named as Treasurer of
the company. Mr. Hennessey be¬
came
associated with the Trust

Bank

18 years
Vice-President and

a

Loan Officer.

and
Treasurer,
Vice-President and

dent and Trust

"The

obviously will require

For the past

he has been

company;

Hennessey,

becomes

to

*

of the credit de¬

became manager

'Vice-President
who

Mr.

Bank,

National

and

Bank

Union

Louis

St.

Third

29, that the Directors of the
bank have promoted as follows
officers

regardless
employed by industry. '<■

Bank

Dec.

three

Cashier

shopping center,
Angeles, T. P. Coats, Chair¬

ance

1919, when the First National
was created by the merger
the
Mechanics-American, the

industrial economy to all of its members,
of whether they are
directly

bara-Crenshaw

from

of

Develin, President of

Bryn

*

Western

an

Department

partment.

Bryn

on

to

Company of San Francisco, Calif.,

partment

In

will add over $10,000,000 to its resources and over
$9,000,000 to its deposits.
The
merger
plans were referred to
in our issue of Oct. 27, page 1768.

The

the
Dec.

under

plan

and later■:-was credit
Manager of the Me¬
chanics-American National Bank.

12,

DeHaven

retired

Louis,

31, it was announced by William
A.
McDonnell,
President.
Mr.

separate special meetings held

the

Vice-Presi¬

Welch,

L.

retirement pay, vacation and welfare funds, unem¬
ployment and sickness disability insurance, and
other protections for the individual members of our
complex society. It will call for wisdom, judgment
and patience to find the best means within the free
enterprise system—either through public or private
channels, or both — to extend the benefits of an I

Vice-President.

has received

will

Harvey

Street

Officer

Assistant

tors, announced

*

*

❖

of

from

First

ization.

would

Company

members of

Trust

*

these columns Dec. 22, page 2768.

Company.

employed economic security and
social
gains
comparable to those embodied in such concepts as

Officer; Leslie J. Olsen,
office, has been pro¬

Assistant

Los

Company

of

Canata,

dition to five offices in Philadel¬

Trust

-Trust

J.

goal of making avail¬
farmers, white collar workers and the self-

able to

F. Crocket, Trust
Department, have been promoted

proval by the stockholders of the
plans for the merger was noted in

Broad

of

Dec.

on

promotions
A.

"We set for ourselves the

Pfarrer and A.

open

of

of

Department, San Fran¬
cisco and Henry J. Thomas, San
Mateo office,
have been named

All the other active
officers and employees of Ambler

Shareholders

following
personnel:

Patera al CoIIectivis m!

*

Assistant Cashiers;
Worth T.
Poole, Trust New Business De¬
partment, has been named Assist¬
ant
Trust
Officer; Kenneth C.

Scherff would continue in charge

con¬

in

Cashier's

Nether

D.

noted

were

F.

tinue at Broad and Chestnut Sts.,
with
seven
other
offices.
Ap¬

.

office

August 11 issue, page 578.

Company had
of $223,952,572 and Am¬
bler
Trust
Company total re¬
sources
of $6,211;954.
Amb 1 er
Trust Company, located in Am¬
bler, Montgomery County,
has
served that community, since 1917.
Provident Trust Company, in ad¬
sources

The

main office of the bank will

of

Trust

Boyd
T.
Barnard, Edward
C.
Bostock, Francis P. Burns, David
Burpee,
J.
Hamilton
Cheston,
Joel Claster, Philip H. Cooney,
John Curtin, Jr., Edwin K. Daly,
Ralph Earle, L. A. Estes, W. R.
Gerstnecker, B i r k e 11 Howarth,
George H. Johnson,
James M.
Large, Henry S. Louchheim, Percy
C. Madeira, Jr., C. F. Norberg,
Thomas L. Prendergast, John J.
Sullivan, R. Livingston Sullivan,
Charles
I.
Thompson,
Thomas
Ra

the

Company,

approval

Presi¬

Woodring,

Executive Vice-President. '
The

The proposal
exchange
of
shares of $10 par value

for

2 2/10th

YOUR

BUS IN ESS... SMALL

ENOUGH

TO HANDLE IT PERSONALLY..

19

Financial Chronicle... Thursday, January 5, 1956

The Commercial and
20

(76)

or

Rates

The Outlook for Money
NADLER*

By DR. MARCUS

as the economy is operating
demand for credit, there is possibi.ity of present restraint policy becoming further tightened;
with early upward change mainly exerted on short-term rate.
Predicts moderate business downturn in Spring of 1956, with

Dr. Naciler maintains that as

long

near-capacity with strong

at

subsequent decline in money rates.
The outlook for the money mar¬
ket

and

rates must be
in the framework of

^interest

considered

existing economic conditions.
country

So long as

ating

inaugurated

present in the

credit

midst of

tinue

in

its

greatest
peacetime
Indus¬

will

restraint

in

market.

Distribution

lunches

as

of food

to low income consumers

a

iorce

and

may

non-farm

people.' The figures on
comparisons rest

which these
leave

balance.

much

probably will come in for support

which

time.

even

schemes

of

will

program

inadequate distinction

among

grades and classes, among
and areas which should

be

farmers

curtail

should

which

those

and

stay in wheat, among farmers

desired.

be

to

Often

farm

who

who

those

use

own

wheat for their

grow

and

those who grow for

Besides,

market.

the

acres

are

this

made

nori-farm

and

nation

people would
today had

less favorable

be much

the

expanded acres in wheat and
those who have cutback, among

of

have

The income picture of both

great.

have

getting rid of supplies and
easing the problem of production

year.
Under these ;circumstances a further increase in the
the

present

makes

Two-price plans and other
for exporting surpluses
advocated as the means

con¬

The

different.

although the level of employment
and and consumer incomes probably

tighter after the turn

become

in keeping things

in the

the de¬

strong,

effectiveness of the

tobacco program

The prices of manufactured goods con¬ will temper the pressure for ex¬
is at tinue to rise;- the present policy of panded relief distribution at this
active

boom.

is

credit

for

mand

the economy is oper¬

near-capacity,

at

the full

over

they misrepresent rather than
No Blanket Solution
1930's.
portray facts.
The real solution
One
appeal
of this method of
Because
the
situation
varies
for such a situation to the extent
adding to farm incomes is that it from commodity to commodity,
it
prevails
is
to
facilitate the
provides some, semblance of the the attack needs to be varied
movement
of
people into lines
payment being "earned."
rather
than
be
a
blanket one.
where
their
productivity
will
Proposals to ease the problems Acre allotments under the mar¬
bring them increased returns.
of surpluses and controls by find-"
keting quota on wheat are not the
ing more outlets also will be appropriate attack on an over- Mobility and adaptability of the
population must be given promi¬
made. Among these will be pro¬
expanded capacity. Were the ex¬ nent
place
among
the
factors
grams to expand the use of school cess purely temporary it would be
ments

<

York University

New

develop some program of leas¬

ing of land to the same end. This
is an extension of the ACP pay¬

migration- of popu¬
lation been prevented.
This ad¬
justment has gone on during most
of our history and is continuing
apparently at an accelerated rate.
It is not a case, as some proclaim,
of "plowing unaer tne marginal
cityward

farmer"

of

or

"driving"

people

shifted, not retired from crop off the farm.
Instead, it is one
followed possibly curtailment.
try is opera¬
production.
of attracting them by better op¬
While
no
reason
is seen for
ting at virtual by a rise in the prime rate, would
Up
to the
present, however,
portunities
elsewhere.
Leaders in
Any upward anticipating that
present price neither Congress* nor the Admin¬
capacity, not be surprising.
Congress could do worse than to
hence
an
in¬ change that may take place in the supports will be replaced in the istration appears ready to propose
discount

crease

in

the

supply
only ag¬

money

could

the

gravate

inflationary
a

pressures
Marcus

Nadler

l

e a

d y

denced

1-

evi¬
by ris¬

ing wages and rising prices of in¬
dustrial commodities. The demand

capital is strong
segments of the economy,
public and private.. It is particu¬
larly pronounced in the home
mortgage
and
consumer
credit
for

credit

and

from all

fields, two areas which are usually
slow to react to general or. quanti¬
tative

credit"'control.

reaction

of

the

The

ecqnomy

to

slow

the

policy of credit restraint reflects
the condition of full employment,

rate,

future will be felt

near

in the short-term rate,
term

rates

of

more

or

less

primarily

near

with long-

rect

interest remaining
at

their

see

future

supports in some
in lieu of price

prices and

a program

land

in

to

price
and

levels.

instances

come

supports on some other products.

The yield curve may be¬
even flatter than at present.

high optimistic predictions
notwithstanding, the economy will
The

not

The Realities of the Situation

operate at present levels for

Perhaps the assignment given
months. Sometime in may be permitted sufficient scope
the spring of 1956 a downturn of to include at least a brief ap¬
moderate proportions in business praisal of how we appear to be
activity is likely to take place. facing up to the realities of the
Only
after business
begins to situation.
show signs of weakness can one
First of all, the emphasis on
expect a decrease in the demand depression
as
a
cause
of the
for credit as well as a cnange in farmers'
difficulty suggests faulty
the credit policies of the Reserve
diagnosis if used to determine
authorities... Whether, the Federal
appropriate remedies. The market
more

many

Reserve will take measures to

in¬

not

in a period of
crease the availability of credit at
record employment and consumer
the
first signs of
an
economic incomes. We. are not in the 1930's
is

attack on this prob¬
combination of lowered

frontal

any

lem.

tions

present

by, some form of di¬

payment, we may expect to
the latter advocated as addi¬

depressed

A

now

would

seem

to shift some

wheat back to grass

in

order.

The latter

might concentrate particularly on
some parts of the Great Plains in
an
endeavor to restore some of
the
high risk lands to grazing.
Acquiring the rights of wheat
growers
to acre allotments, in¬
centive payments, or rentals might

be used to this end.

units

than

should

be

should

help
induce
alternatives

where

and also expand
in

some

The

Entire wheat

parts of farms
retired.
Lower prices

rather

feed

some
are

uses

shifts

present

of wheat

areas.

forget their
and

ment

for the

mo¬

statesmen

in

viewing
what
the
government
might do to foster a desirable
adjustment of this sort.
A migration away from farms
does not mean land abandonment,
although it may result in some
idle farmsteads which no longer
are
needed.
The
land is
being
absorbed

nearby

consolidation

by

into

farms. The hue and cry
that this means corpora¬

goes

up

tion

farms

and

end

an

to

the

Those who give
vent to this view ought to open

"family
their

them.
as

farm."

eyes

the

to

Farms

are

facts around
getting larger

they need to in order to make

effective

proposal to cut output by

politics

become

use

of modern machines

and

technology, but they continue
individual units, operated

leasing parts of farms or tjy pay¬ as
ing farmers for converting some
largely by the farmer and his
depression remedies are not fields to "fertility banks" may be
expenditures by the Federal Gov¬ is more pronounced is still an the" answer. Some may believe expected to continue to come in family. It is difficult to see why
they do not qualify as family
ernment.
Fiscal restraint can- open question.
that the
export market is de¬ for a good deal of favorable atten¬ farms.
In general,
money rates will pressed but this likewise is hard tion. However, it is not apparent
therefore not be combined with
Larger
units mean
reduction
follow the course of business, and to see.
Exports, while down from at this time that adequate con¬
credit control.
since I expect a moderate decline their unusual levels after the war sideration is being given to the in human drudgery. Machines re¬
place
human
muscle.
The
greater
in
business activity in the spring when we provided most of the host of questions which need to
♦Abstract of a talk by Dr. Nadler be¬
land
area
available
gives more
fore a Joint Allied Social Science Asso¬
of 1956, I also envisage a decline
means
as
a
way
of helping re¬ be faced. There are reasons for
ciation Meeting sponsored by the Ameri¬
flexibility and permits less inten¬
in interest rates, especially shortcovery,
compare
very favorably believing that this proposal may
can
Finance Association, New York City,
sive use of. land* such as more
term rates.
have more promise as a way of
Dec. 29,
with prewar.
1955.
•
adding to farm income than:.as grass and' less:,crops when condi¬
Our,.' surplus
problem
comes
tions so warrant. Best of all, the
a
production curb.
Unless em¬
partly from a carry-over of war
Continued from page 9
the farm
ployed with much selectivity;1 it larger units- provide
expansion, as for example in
is unlikely that most of the land family with the means of better
wheat, and partly from the de¬
affected
would
be
of the
top living. Those who sing the praises
cided
increase
in
agricultural
of the small farm surely do not
grade.
The result might be to
productivity. The consequences of
mean
to oppose progress which
take acres not contributing mate¬
these are made more serious by
yield these results. Non-farmers
the difficulty agriculture has in rially to surpluses as well as acres
that do. It would require careful may be disturbed more than farm
adjusting capacity to produce
administration
and
policing.
It people over community and trade
downward, and the relatively in¬
effects. A decline in farm popula¬
also is open to the criticism that
veto powers, or if he still does, diverted acres could be put. The elastic demand for farm products.
tion lessens the farm market for
funds would be used to
the subsequent political heat will unfavorable reaction to this pro¬ The stretch in the human stomach public
some things. Less coffee and sugar
build
up
the farmer's
private
be even more intense.
limited.
posal showed rather plainly that is
Hunger
is
a
real
and fewer overalls may be needed
farmers are somewhat less than driving force and supplies do not capital in the form of soil fertility
but larger farm machines, ferti¬
for use in larger production later
No Enthusiasm for Controls
enthusiastic
about
controls have
to
get very short before
lizers and the like, and items of
on.
Effectiveness of the curbs on
It will be recalled that the pro¬ equipped with teeth.
The result prices
go
up
materially.
This
output
would
diminish
rather living more on the luxury side
gram
devised in 1933
to help has been that acres kept out of shows up in war.
Once the ap¬
will
be
bought.
There also is
farmers
out
of
the
depression wheat production haye played an petite is satisfied, however, man rapidly as fertility increased.
likely to be more work opportu¬
morass
was
referred to as "ad¬ important role in
Adding to fertility is accepted nities in service fields with the
providing an does not go on eating merely

rising wages and continued large

decline

or

wait until the downturn

and

t

Agricultural Price Supports and

Production Controls in 1956

supply is abundant. The by the public as "conservation" change.
between surplus and and, hence, is regarded as being
In programs which are devel¬
of
scarcity is small. It takes only a suitable for expenditure of public
oped careful distinction should be
Controls have been linked with
Adequate distinction has
moderate surplus to have a de¬ funds.
made between basic adjustments
price supports in the various leg¬ in terms of bushels or pounds. cided effect on price.
Another not yet been drawn between con¬
which lead to needed corrections
measures
to keep the
islative
enactments
since
that Acre controls invite taking out point might be added that prices servation
and
temporary income supports
time.
The Act of 1938, which re¬ poorer acres, more intensive land of
many
farm
products
show soil in place and measures to
which may have a place during
mains the basic agricultural legis¬ use, greater application of ferti¬ marked
instability because they build up soil fertility. The former
the adjustment period. The latter
lation, provided for marketing lizers and other measures to are influenced by forces beyond is more appropriate for public
should not be in the nature of
S up ply the farmer's control.
quotas and acre allotments under offset the restriction.
Weather is action than the latter. '
permanent fixtures which will be
specified supply conditions. In a accumulations testify to the-effec- important among these.
Another
point to be noted is continued after the need for them
sense, price supports and produc¬ tiveness of such endeavors.t
farms today are too
These surpluses are not spread that many
has passed. In trying to alleviate
tion controls are Siamese Twins.
This might be regarded as set¬ uniformly across the board. Wheat small to be satisfactory economic current
problems let us avoid
However, they are far from being
units. For the government to lease
ting the stage for strengthening presents the most difficult case.
adding to the problems of on¬
identical twins with respect to the
the control side of the picture in Cotton appears to- be somewhat parts of such farms will aggravate
coming generations.
regard in which they are held. 1956.
rather
than
aid
this
problem.
However, the political un- out of line. Feed grains are in
One aspect of the farm question
Perhaps a better description is
Moreover,
on
these
as
well
as
on
palatability of controls makes this ample supply, at least partly due
which is not receiving the atten¬
one of having to
"take the bitter
farms
generally
the
temptation
to
the
use
of
diverted
acres
for
improbable.
In
addition
there
tion it deserves is the importance
with the sweet."
The argument
must be more than a little skep¬ feed crops.
There are still some for the operator will be to inten¬
to farmers of maintaining stability
that the vote of farmers for mar¬
ticism
regarding how ready the surplus problems in dairy prod¬ sify production on the acres he in the rest of the
economy at a
keting quotas demonstrates their
country is to turn over to Wash¬ ucts but with growing population has left with the result that the
high level of production and em¬
willingness to be controlled is not
ington the decision making re¬ balance here is not too far away. cut in output may be far below
ployment. In recent months the
too convincing.
They may vote
garding
farm
operations.
The The sharp drop in cattle* prices in the cut in acres. In brief, the immediate threat has been infla¬
for quotas because they do
not search
hence
goes
on
for less ,1952-53, and the current situation program to return some land in tion rather than the recession we
want to lose the price supports. No
painful wav of bringing output in hogs, illustrate the cycle swings the Great Plains to grazing dif¬
heard
so
much
about
in
1954.
sign of enthusiasm for controls is into line
in livestock.
While feed supplies fers decidedly from one of seeding
jyith available outlets.
Fortunately, we did not yield last
in evidence.
have some influence on livestock down good Midwest farm lands to
year to demands that we rush into
An administration proposal in
Soil Fertility Banks
numbers, they are in the main legumes.
a
wide range of recovery activi¬
1954
was
sum
total
of
the
decisions
This shows up in increasing at¬ the
designed to curb the
ties.
Fortunately, also, we have
The Disparity of Income
made
by
individual
farmers.
The
surplus not only by limiting the tention to proposals to have the
had the courage to use the brake
Problems

Con t r o 1 s of output
accepted as the corrective
price
depressing
surpluses.

justment.''
were

acres

under

used

for

the

"basic"

because

margin

corrective

crops

marketing quotas, but also

by restricting the uses to which




supply;, of -feed
grains.
Moreover, no eagerness has been
displayed for shifting from acre
controls to more binding controls
ample

government pay farmers for cre¬

ating
way

"soil

fertility

banks"

as

a

to reduce current production,

decisions

are

their

re¬

Among
the other
basic
crops,
rice apparently is
over-extended and doubts arise,

sponsibility.

the
exist

Emphasis often is placed in
disparity which is alleged to

pedal

moderately in

insistence

of

should remain

some

on

spite of the

that

the

foot

the accelerator.

Volume 183

There

Number 5496

times

are

when

(77)

The Commercial and Financial Chronicle

...

Such

The

apt

to

the

form

than

make

to

may

that

in

By GERALD D. McKEEVER

Western Pacific R.R.

increased

expenditures

and

plaints

to hear

more

those

of

who

the

a

on

even

an

This

truly is a year when we
place a good deal of nope

Administration

and

the

vail

over

is

also

time

it

when

ourselves

This

if

dished

foe

effective

out

to

It

to

self-interests,

the

interests of general

wel¬

narrow

broader

fare

will

zens

will suffer the consequences.

Are

will

troubles

help

forget

us

the

for

moment

solutions

real

for

challenge is
ready to meet it?

we

there.

in

was

of

its

participating

increase in the

is

Are

7

common

shares of

and

did

:

gen¬

partners^.* Mr. Cates entered

after

Mr.

Co.

'

in 1955 to the estimated $9.25 per
revived the hope for a more appropriate rate

As far

7

renewal program and

v

earnings

as

Cal.

which

and

ALTO, .Calif.

Kielsmeier

has

—

been

;

concerned,

are

Partners

in

a

are

and; Marcus
of. whom

as

sources

operations

began

on

Hannafcrd

&

to the

for location

area

Another

on

zation

factor

the

of

understood

Pacific.

both
previously" with

added

Of

Liabilities

that

may

tend

Sacramento

road's

to involve
more

loss of

a

gradual

to

swell

1956

mame

of

R7G.

and

one

-Mr. Dickinson
T.

C.

was

Henderson

& Co.

formerly with
Co.

&




the

,

road
.

1954
to

3,526,003.02
49,198.45

-

Acceptances Executed a/c Customers
Capital (150,000 shares - $25 Par)
Surplus
■

will

3,750,000.00
6,250,000.00

4,091,093.71

Profits

Undivided

•

•

if

$234,365,142.05

TOTAL LIABILITIES ;

>
ȣ.

*-

#

P. RAYMOND PETERSON

BENJAMIN P. RIAL

Chairman of the Board

Pntidant

•

reorgani¬
is

which

NATIONAL BANK

cumulative effect is the 7

OF

COMPANY

TRUST

AND

;

^

-

7

.

of the

Western Pacific which

/ ;

-

enjoys

.

,;

PATCRSON

/'*

outstanding char-; *
a

of the lowest

transportation ratios among Class I roads.

annual
stand

report

New

third

among

leading

U. S.

-

the

roads in the over-all

efficiency measure of gross ton miles per freight train hour and

BOROUGH and WEST MILFORD

BOROUGH OF T0TQWA, WANAQUE

summarized in ^

which; among other, things, showed

MOUNTAIN VIEW, P0MPT0N LAKES,

PATEftSON, BL00MINGDALE, CLIFTON,

low wage ratio

~~

the firm

Dickinson

$216,698,846.87

$20 million to the Western

some

but steadily

"rities business from offices in the 7
The road's efficiency achieveifient was succinctly

under

-

Reserves, Taxes, etc

earnings is a

subsidiary

Northern

A high degree of operating-efficiency is an

aeteristic

e

/7L7.

made possible by the road's extensive and continuing -

improvement program,.

R. G. Dickinson Co*: Opens v'l"1'

Building

-109^461.36

;

Deposits

support given tp earnings,by the improved efficiency of

1 operation

:

766,225.02-

-

$234,365,142.05

777 7

1,100 acre site which

the

possible loss carry-forward from the recently concluded

-

Walnut

7

jM.

in*

formed

DES MOINES, Iowa—Robert G,
Dickinson is engaging in a secu-'

3,178,251.58
49,198.45
•

0

full year's operation

a

Milpitas for industrial development:

7> the road acquired at

Pierce

Kielsmeier,

Talbot.

300,000.00

ASSETS

TOTAL

7

.

1,71955, this plant did

March

it is also expected that additional industry

of this plant and

,

securities business.
D. Pierce

C.

•

Assets

Other

Milpitas,

the huge Ford assembly at

Cathrine

- were

26,585,709.89
26,494,248.45

Mortgages

Accrued Income Receivable

further increase appears

a

^year's earnings will .have the benefit of

with offices at 539 Ramona Street
to engage,

First

>

Banking Houses
Customers Liability a/c Acceptances

'

PALO

34,237,428.34
49,671,309.53

into full swing until the middle of the year. The present

not get

be attracted

V

Municipal & Other Securities
Loans and Discounts

F. H. A. Mortgages
w;
Federal Reserve Bank Stock

7

as

addition to traffic

in

Pierce & Kielsmeier

U. S. Government Bonds

probable for 1956.- While there* is hot in sight any such spectacular

specialized in railroad bonds and
railroad equipment trusts. > ;

■

CTC.

$ 36,300,522.74
56,672,786.69

Cash and Due from Banks

or more.

years

Sales
77',

,,

31st, 1955

HiMii

compared with the same date in 1954, and
net current assets were down $10.1 million.
It has been stated"
that the road's betterment program' may; run for ranother two

■

joined
Kidder,
1939- and has

Pereyra •

but
toboggan"

The earnings recovery

7 last September 30

•

Peabody

of December

participating feature,

diluting

the

In the past the greater part of expenditures for betterments
have been charged to capital account. The dividend outlook is not
now so much a matter of earnings as it is of available cash, and
the road's cash showed a decline of almost $10 million as of

ganized the firm's mutual fund
department irr 1949 and was its
Manager - until 1952, In ,1954 he
.

I

PATCRSON

OF

COMPANY

TRUST

,

service in the U. S. Navy..5He or¬

7.

as

divi¬
which had held at the $3 rate since 1945, again became

of its line is protected by

Dudley F.
Pereyra have

York

NATIONAL BANK
AND

lining of tunnels on this many-tunneled
road. The road has been virtually dieselized since 1953 and much

that

New

Condensed

lor the further concrete

Pereyra

Kidder, Peabody & Co., 17 Wall
Street, New York City, members
of the New York Stock Exchange,

appointed
Manager.
.7'.'

be rewarded in time.

.

called for payment

of the preferred was

1956, largely for the continuation of the rail

was

qualities. It seems

Pacific common is "discounting"

higher dividend, and this confidence may

a

but still nothing happened. It if not that the road's
management is not "stock minded," as the saying goes, but that
its primary concern is to so modernize and• improve the road's
property as to place it in a thoroughly competitive position. Along
these lines a $6 million improvement budget has been voted for

•

in:-1946

therefore that Western

obvious

of payment,

•?

organization

respectively, both of which are comparable

to growth and investment

prospects for the long-awaited increase in the common

dend,

the

as

dividend.

with

away

share for that year

eral

superior

Nov. 1, 1954.

on

remote.

as

not

which results in a yield of less

against yields of 5.8% and 5.2% on Great Northern

common

83,211 share balance
This

to the firm

as

and Southern Pacific
if

benefit of the former

unfortunately not until the road's earnings were "on the

announced

dividend "pay out"

of

41/2%

This

stock for 225,000 shares out of the '
total of 308,211 shares of its 5% preferred.
Then almost coincidentally with the favorable final settlement of the tax case, the

iri cash

been admitted

rate

than

share.

is due to the relatively

somewhat under-average earnings multiple

a

is only

Pacific

Western

for

67

1955 earnings of $9.25 per

exchange $22,500,000 principal value of its 5% income debentures

;

Cates and T. Edwin

about

price of

times estimated

Appeals Court the following November. This favorable outcome
anticipated by the road which in August, 1954 offered to

and 37,500

has

the road

physical daihaage or

tax case was finally settled in favor of the Railroad,
decision of the U. S. Supreme Court on January 18, 1954,
and again by action of the U. S. District Court at San Francisco
which threw out the ancillary case and the latter was upheld by

Kidder, Peabody & Go.

Edwin

either by actual

affected,

The

was

T.

been

first by

the

Dudley F. Cates

Pacific.VHowever,

traversed by the Western

are

current

The
about 7.2

the $10 million when, as and if liberated,
the^road's preferred which, because
feature, was a considerable barrier to an

thinking of applying

to facilitate the refinancing of

Add Two New Partners

action

in any

Central

by interruption of service.

preferred

low

1953 price

small road, will be a relatively minor

possibly adverse factor, although temporary

have

may

the wind-up of military traffic that had

the

million for the whole district, the effect

a

reports have been received to date as to what extent

no

in progress.

was

factor

Pacific,

California which

despite the general slump in the final

are

That

them?

episode

Since it
will

ICC

the

by

ordered

Guesses ran all the way from the wild idea of a "hand
out" in cash to the common stockholders to the more sensible

1956 sets before

The

us.

(the

reduction

rate

parent.

up

the choice which

in that year

share

common

the

for a

with the Great

lie in the recent floods in areas of Northern and

Another
case, may

of

price

present

1953 and 1954 prices were

tax benefits that should have accrued to the

to the prob¬
lems with the purpose of finding

going to face

we

per

our

or

the

of

transcontinental

a

matter.

considerable
degree of speculation as to what would be done with the $10
million reserve that the road had set up against the then still
unsettled $17 million claim of the Western Pacific R.R. Corp., the
parent company prior to the reorganization of the Railroad Com¬
pany, for alleged appropriation by the latter of some $17 million

going to be contented
political soothing syrup

which

the Western

on

important factor for the road's earnings while the

an

Another

we

with

$11.63

such

Korean

The citi¬

unheeded.

go

indictment

an

then still outstanding)

been

way

If we vote on the basis of the
politician's promise of satisfying
*

much

so

that

estimated

amount to only about $10

narrow,

months of the year and

to get seekers of
political office to face facts is for
voters to insist that they do so.

our

is

1955 high represented

not

in

Bieber, Cal. just below the Oregon border.

Northern at

the 1955 high.

is

glean

was

One

us.

rather

next June 1.

link

end

an

San Francisco terminus,

much shorter haul to its

high, and that is particularly true of the latter year when
earnings turned out to be only $6.13 per share. There was much
sounder ground for the 1953 price action since the road was able

for political clap-trap that is what
will

was

the

is

chain, connecting with the "Denver" at Salt Lake City and,

too

fall

we

44%

7 the stock as it is an indication that the

is well to

that

range

1954 to

1954 low to

pre¬

political expediency.

a

remind

will

a

cover

within the Pacific-Mountain territory ranging
Pacific

Western

The

gain in the rail stock averages over the
much wider gain for individual stocks.

a

has been sought) should

(7%

freight rate increase

wage

from 16% to 29% and to be effective by

the 22 point run from the low
a gain of a little over 40%.
However, even this was not even mediocre as compared with
the 70%
gain in the Dow-Jones Rail Stock average from the
1954

judgment

4%

ments to, from and

Traders in Western Pacific who were sufficiently alert prob¬

of

leadership in both the Congress

a

increase. A smaller factor of possibly negative portent
is the ICC order of Dec. 30 for rate cuts on transcontinental ship¬

for

ably made out considerably better since this stock ranged from
56% to 737/s in 1955 and from 517/8 to 58% in 1954. While the

Expediency Needed

of

indicated

earnings

net

Pacific stock has had a good recovery from the
However, the current price level of about

high, and

tney

keel.

that statesmanship and

road's

56%.

witnessed

1953

com¬

Statesmanship and not Political

must

the

in

virtually coincides with the 1953 high of 67%. This has been
source of great trial to the patience of holders of this stock who

have

-

harmed by programs
to keep the economy

seek

of

gain

67

tax

think

low

1955

...

being

are

which

50%

a

1955, Western

of pressures for

reduction during an election year.
A
political ear also may bend

somewhat

Co.

the

With

inflationary dangers
over,
we
will do

aware

at

the road around $1.35 million annually
some $2.40 per share before Federal tax which the road accrued
the rate of about 42% for the first 10 months of 1955. However,

or

the

be

now

well to be

the recent round

side, it is estimated that

adverse

the

On

of wage increases may cost

rather
While

costs
farmers.

indications

are

of the

worst

felt

rising

prices

there

speed both in country-wide comparison and in its district, while
it stood second and first respectively.

in net ton miles per car day

are much more

themselves

of

tabulation showed it to

same

that of the present, infla¬

as

tionary tendencies

in its Central Western district.
stand second in freight train

second in this respect among roads

infla¬

an

tionary trend may be shared in
quite iully by farm prices. • In
the face
of
a
surplus situation

21

-

t

^

a

t

s

»

s

■_

»

a

.

r,

r

?

z

s

,

'

Jersey
i

n

$

j

r

a

n

.

e

o

-

'

■

-

22

The Commercial and Financial Chronicle

(78)

Continued

from first

the magnificent and regal lines of
the Rolls-Royce or perhaps the

page

Hispano-Suiza,

The

Imported Car in America

But

their engines sharply raked over
Mans has to one side in order to lower the
line
and
thereby reduce
been chosen here as one way of il¬ hood
lustrating immediately some of the wind resistance. But perhaps more
main diilerences between Ameri¬ fascinating still, they all had hycan
and European automobiles. draulically
operated flaps
that

in America. Le

These differences

serve

would imagine. Quite aside
the whole approach
to the production of an automo¬
bile
is
frequently different in
Europe. Take, for example, the
question
of
what
the
public
wants.
In the United States this
is determined in various compli¬
many

the

from

rose

deeper than

run

as

of the

rear

car

to

brake of the type used

a

Many of the cars at
equipped with deDion
back
axles,
which
give
extraordinary road holding. Some
of the cars, such as the English
Jaguars, had disc brakes which
provide stopping power far be¬
cated ways. Elaborate surveys are yond that available in any other
(Many of these
conducted, there is no end of re¬ brake system.
search
.and
examination
and features were first pioneered at
Lei
Mans.) Passing along this line
finally the new model, guaranteed
to satisfy at least the great mass, of nearly 70 superb machines, one
the

in

ladies

Le Mans

would

But in Europe, what

forth.

comes

having

tomobile

And

on

de¬

many

engineering concepts
application to
passenger
automobiles.

wonderful

normal

not be given such
elaborate
thought.
For
many,
Le Mans, or the great Mille Miglia
in Italy or some other competition
of near-heroic proportions may be
may

found

and

Continental equiva¬
lent—want in the way of an au¬

rather its

or

were

have

vices

Montclair—

Upper

airplanes.

on

from styling,

because

Mans is

Le

consid¬

a

success

not

or

be

States,

different

pro¬

automobile tends to

an

the Atlantic.

the

still

look

of

—

of

it

take

mined

in

not

or

brief

a

be

can

24-hours at Le

even

to cross
it, have proved their mettle.
This is not

mobile

manage

treatise

a

racing

but

auto¬

on

to

appreciate
why a growing number of Ameri¬
cans

are

and

to

cars

are

from

American

models

but from

each

other—it is helpful to know
about events like Le Mans and in
their proper perspective. Al¬

by

ropean

no

cars

;really

or

means

bred

on

routes

all

are

Eu¬

circuit*

race

nonetheless

the

emphasis which these events put
on the
handling qualities of auto¬
mobiles tends to permeate
area
of
the
industry.

large
Handling

qualities will
but to

vary

there will be
to

European

cars

directness,

a

ple

fact

artistic

that

"feel"

And from

possess.

the standpoint of

the

a

which American

cars

longer

no

a

from car to car
greater or lesser degree

a

styling, it is sim¬

European

cars

expression,

are

good

or

bad, of each company, being free
of the

taste

dictates of the

mass.

the

heavy

a

Thus there is immense

gasoline

consumption—all
nation of practical

a

people.
So long as there is an
appreciation for
these qualities
they will be provided but there is
a
growing number of Americans

of

aesthetic satisfaction

some

of

well.

as

After

all, second to a house, the
purchase of an automobile is the

largest single acquisition made by
most families.
look

upon

The. expression
automobile

an

transportation"
Transportation
function of
that

an

is

is,

of

just

as

often

"I

heard.

the
automobile, but in

expression

course,

there is

no

trace

of

getting any satisfaction or en¬
joyment from the experience, and
therefore
something
important
seems to have been lost.
Motoring
used to

be

the

The Sunday ride

highpoint

of

the

millions of Americans.

present
moved

world

American
into such

But in

car,

a

was

week

servo-assisted

of automation that one

longer
It

taste
is

automobiles

not
are

the

joys

that

bare of

can

once

At

Le

Mans

next year,

will

be

last

June

today's

lined

cars

again

of tomorrow

to. prove

up

merits of their design,
will not
be
a

and

the

there

chromium-plated

triple dorsel fin

or

whale's tooth

cmong them!

For
rome

a

of

these
Benz

Le

was

Mans

Each

let

us

examine

automobiles.
which
one

was

of

The

crashed

at

team

of

a

equipped

with

fuel injection—as are some stand¬
ard production Mercedes'—a fea¬

ture that Detroit is rumored to be

working

towards

lime in the future.

adopting

some

They also had




but theystill
establish a somewhat

relationship

between
It

is

On
the
other
hand, if "just
transportation" is all that is re¬
quired, many Americans are pur¬

chasing

small

European
cars
which with their
compact size and
economy are more truly providing
this

moment,

l.Iercedes
three.

personal

than

Meanwhile, France too

any

market.

The

car

produced

do¬

History of the European
Car in America

of

into

come

up

"foreign car" often
all sorts of thoughts,

automobiles

Up until the

setback.

For

one

thing,

In

accept

small

a

breadth

of

to

these

the

spare

in

imported

parts

bogey in

the

latter

MG,
whole

a

to

new

a

of

respects it
tenuous.
There

and

few

were

is

rather

second

World

of

slim.

War,

the term usually
brought to mind

in

often had to .be defended but
now,
in many

spare

upon

is

predicament
of
Britain and France, helped in var¬
ious ways to make the imported
car people at home.
Sales flour¬
ished.

situations, it is looked
smart thing to do
as well as socially. It

matter of taste and

a

or

as

in the

of

case

the

whiskey; bicycles, shirting
cutlery, one may find* his de¬

sires

better

in

rewarded

im¬

an

ported product.

Foreign cars have
part of the American
and enriched it, and there

become

In

1948, 15,422 cars were
sold and by 1952 annual sales had

scene

a

is certainly no
paucity of inter¬
nearly doubled, 29,299 units hav-'
which
to
ing been sold that year. However, esting v models -from
choose.
In
the
in 1953 sales slipped a few hun¬
following para¬
dred

and

cars

in

1954

graphs

impor¬
tant dip occurred, and if it had not
been for the

market

for

imported
would

looked quite bleak.'

There
that

are

1

accounted

for

important of these

doubtedly
cars

the

the

on

glut

market,

situation in which

practically

decline

car

they

do,

The

was

un¬

creating

new

were!

and

used

particularly hurt for¬
sales since finding, ■; as

large

a

part

of

their

sale for second-car use, the super¬
abundance of American used cars

had

the

main

area

effect

of

imported

American

cars

though, models
available in the

market

had

been

substantially unchanged
eral

years

and

attracting the
terest.

It

that

to

up

a

in

some

good

for

a

new

which

in

the

German
Over

the

as

proven

Then consider its

luxe VW

French

looks

like

Renault,

bug, and

a

is

considered by many to be the fin¬
est

handling small car in the world,
delivers in New York City for$l,25^
in terms cf speed, mainte-

and

carrying capacity, etc., gen¬
erally matches the VW. The Re¬

nance,
nault

has

also

clutchless

gear

a

change making it
suitable for second

particularly

in the United States where

car use

often

just introduced

the

lady of the house—and

sometimes

the

know

to

how

man

shift

does not

or

England
Minor,

does

—

to.

care

produces

not

using a

gears

the

Morris

delightful automobile to
drive, and although here again it
gives the appearance of being
quite diminutive, once aboard andi
a

under way that notion is soon for¬

gotten.

All

well that

these cars handle so
behind the wheel,

once

the question of size fades into the
background while one wonders at

the fun they bring to driving.

Moving into a larger class, in¬
volving automobiles with a seat¬
ing

capacity

American

of

approximately
there are

cars,

eral makes exported

in

quantity.

this

VII

to the States

The biggest seller in
has been the Jaguar

group

Mark

that
sev¬

which

sedan

combines

handsome appearance with fine;

a

performance
of

high standards
An automatic

and

craftsmanship.

transmission

is

also

addition, the Jaguar
has

brand

provided.

In

company now

model

coming
which,
while
smaller than the Mark VII, none-;
theless carries five comfortably
and offers the same quality and
high performance.
Its price is
lower than the Mark VII. being
in the neighborhood of $3,500.
a

into

the

From
cdes

est

new

States

Germany comes the Merline, carrying the old¬

Benz

in

name

Benz

motoring.

Mercedes
renowned

world

are

cars

and although long associated with
kings and merchant princes, a fully
equipped Mercedes Benz sedan
can
be purchased
in New York

City for just over $3,000. Like
Jaguar,
Mercedes
has
several
handsome sports cars, one of
which, the 300 SL, is famous for
its upward opening doors. The SL
has many other unique features.
For example, it is equipped with
fuel injection, a development still
the

in

stage so far

rumor

concerned.

troit is

the

earlier,
raked

SL
its

on

over

as

De¬

mentioned

As

has its engine
side to reduce

can

road

automobile

on

be purchased in New

today.

by

a

lower hood
the

car on

Its factory published

speed is 160 miles per hour.
In

the

discussing

Mercedes

Benz

SL, I have strayed into the
field of sports cars, an area where
Britain
has
had a distin¬
long
guished reputation. The MG and
the
Jaguar
sports
immediately
come
to
mind and: perhaps the,Austin
Healey and the Triumph;
-

York

T'

of

holding ability, high performance

City for a delivered total
$1,495. This automobile will

average about 35 miles to the

gal¬

lon.

will

Its

neither

air

cooled

freeze

nor

anti-freeze in

Volkswagen

a

less

than

engine

boil,

requires

winter.
can

The oil

be changed

three

quarts, but
important the rate of depre¬
on

the

other

car

VW

is

lower

than

^

car* of

arP

superior road

fine
craftsmanship.:; : They
might well be termed the thor¬
oughbreds of motordom. Although
to the chagrin of traditionalists,

and

MG

has

its

forsaken

classic

angular shape in favor of

tifully
servers

a

and

beau¬

stream-lined version, ob¬
of the foreign car indus-.

sounds

try in the States are unanimous
in agreeing that the new model

it

simple explana¬
three years sales

will be

from 1,2010 to 35,000
why the Volkswagen
company is predicting that twice
that many will
be sold in the

records

any

con¬

penchant

tion

of

have

gone

units

and

U.

for

sidered

the

in

U.

S.

this

must,
the

is

in America today.
too good to be

a

why in

American buyers and cer¬
tainly reduces the depreciation
rate a good deal. The Volkswagen,

example, which has never
undergone a basic styling change,

mil¬

price, low operating costs and de¬
preciation. A fully equipped, de¬

all

many

a

an

but

models is proving an attraction to

S.

the road today.

This

car

U.

Volks¬

single model of

sev¬

Actu¬

which

choice is

cars,

limited to the Volks¬

The

wagen.

produced

probably places it
popular and most

most

true

model each year.

the

for example.

wagen

ciation

change,

produced

Take

degree of in¬

American

economy

no means

ered the most advanced

today.

no

managed

Among
by

tomoblie

in

sale for four

is

resistance

here

unprec¬

the

dealers

The SL is generally consid¬

fact,
had

to

line.

most

no

especially

—

sales

wind

longer

five years without

the

for

income groups

upper

many

of

in¬

for

7,500 and although

economy types—make more sense
for more Americans than
any au-

with

were

same

was,

edented

keep

a

of their market.

Aside from this
of

saturating

and

although

a, lion VW
units have been

cars

The latter

away.

available

date,
foreign
cars
have
found purchasers in the

middle
•

American

wholesaled

nearly given

eign

of

mainly

have

factors

the

those

briefly described.

To

car

V
of

number

a

of

some

What is Available Here

(6,343 in 1954)

the

America

in

are

rising tide in German

Volkswagen sales
prospects

an

(Chevrolet

Chevrolet, the Volks¬
wagen faced an altogether differ¬
ent sales challenge.)
^;;

the

as,

practically,

Detroit companies, ap¬

some

longer limited

no

is possi¬
imported
automobiles. Until recently pur¬
chase of an imported automobile

parts available, practically no dis¬
tribution set-up, but -there was
good will from many quarters.
Even

Choice is

to a traditional group; It
ble to consider various

somewhat

was

result, selection of a motor
in American has a new dimen¬

sion.

motoring,

ratio

higher for

come

a

car

younger

the beginning

most

preciating

bang.

a

as

and

two seater.

was

market

car

with

Hillman

generation—concept
This

doubt

country.
And
behind
came
the

introducing

the sports

back

1955

on

no

close to doubling the
all-time high of 1952 (they will
certainly exceed 50,000). 11 can
now confidently be said that im¬
ported cars are here to stay and,

at least

new—or

now

imported

time

some

tabulation

snapped

may

this

running just
English Ford,

traditional

Sales will double that of 1954 and

of course, the Austin,

rugged 4-5 passenger car which
sold over 8,000 cars in 1948, its
year

final

a

but what the

has

a

first

was

to

Although it will be

1948.

was,

sales

dispel

resistance

of

—

Furthermore,

car.

particular.

the vanguard of the English

imports

on

the

intro¬

as

Volks¬
come

hard, proving that America would

cars

form

black

a

the

early '30's, and the Crosley of a
later period. But although dimin¬
utive, the car was brilliantly en¬

same

was

wagen sales continued to

the

the

ar¬

and yet there seemed to be
signs of strength in spite of the

points

the

models

new

year

beginning

in

buyers to

some

dealers.

stance has over

clutch,

made Austin of the late 1920's and

tically

sports

slow in reaching

were

States, causing

market,
being
only
slightly larger than the American-

duced

new

announced

Nineteen fifty-four

American

ally, the longevity of imported

especially if one's knowledge

such

smallest

but

several
been

rived.

"contribu¬

French

that

had

hold off until the

rear-engined,
four-cylinder Renault, manufac¬
tured by the state-owned com¬
pany just outside of Paris.
The

sidering

conjures

the

in¬

was

the little

was

A

term

fact

models

terested in earning dollars and so
she also made a bid for the U. S.
tion"

appreciate

abroad

or

The

the

States.

mestically.
Brief

having

hope for acceptance of
products
in
the
United

cars

features,
to

likely a pub¬
t.iem, it never¬
requires time to accept a
new concept.
Finally, sales were affected by
to

theless

little

their

condition

many

perhaps, the difference between
handling a sailboat and manning
truly of something resembling a Lacka¬
the road! wanna ferry.

and

held

models are and how

lic

to

automobile

themselves

the fear of problems re¬

as

this, no matter how inter¬
esting and attractive the foreign

entirely by the

British

manufacturers

European

themselves and their occupants.

on

government,

our

with plastic
bubbles, jet pipes and
all manner of fabulous and fan¬
tastic creations.
But this is only
delusion. The cars more

already

done

most

manage

are

been

for¬

Besides

and
new

seems

buy

today.

automobiles.

picking

the

have

we

monthly the public's reaction is
being tested out to futuramic cars

tomorrow

British

the

that took place during 1954.

comfort

tomorrow.

Actually,

for

Almost

car

for

market

great and wonderful

a

experience.

there.

great deal is heard

period of Britain's

was

to

garding service and parts — a
fear well enough founded and for
some time valid but not so

was

"export drives"
picked as a

great

America

have

auto¬

before

anomalies for

no

The Car of Tomorrow

Today

early

and

is available there is

turning to foreign cars
why foreign who want more
sensibly designed
very different—not only automobiles
and
ones
providing

understand

though

.

the

inclination

cars had pretty well done so
henceforth
more
depended

rents

supply of U. S. dollars.

was

natural

a

eign

achieving this sale with less than
500

by the
beginning of 1954, Americans with

gineered and well made and still

length which makes parking more
difficult, undue width often mak¬
ing passing or meeting other cars
hazardous,
a n d
unnecessarily
large engines although they cause

deter¬

Mans beyond all shadow of doubt.
The finish line is the acid test.

Those who

ark.

an

immediate

so

$2C0

as

that

upon
the cars being sold.
This
involved overcoming such deter¬

car came

and

scarce

little

as

of operation.
noted

continues to be produced in prac¬

sides

two

interesting weight, although a large share of
it
is
quite
dead,
unnecessary
automobile

edly
produce
very
data, but whether an
can

This

the

grounds around Detroit undoubt¬

butter

be

of

the

manufacturers

racing

upon

were

that

first year

should

In Europe, the con¬

on

cept of an automobile in itself be¬
ing the ultimate goal of the de¬
European type, over public roads sign is• still respected, whereas
closed for the day—or long dis¬ our American cars, in aspiring for
more
glamorous, at¬
tance rallyes as the best possible something
proving ground for an automo¬ tempt to combine the styling of
bile.
The
e 1 aborate
testing jet aircraft with the proportions

European

ma n y

mobiles
Britain's

to

duction of

the

post-war period, American

cars

be¬

of

and

In

foreign

sidered

in

bread

European

America.

products, the chances of these

Although this view of automo¬
bile competitions tends to be con¬
out-dated

The

to

the

new

all

version of the

was

Therefore, from the very
ginning, the approach to the

the finish line.

at

changed.

Hollywood
that period.

war

Renault

developments

is determined

during

after* the

ered by many European manufac¬
turers as a testing ground for their

finding their way
the final arbiter of this year's into standard production models is
"fashion" and whether the design enhanced accordingly.
is

stars

of

its
It

happened

you

follower

a

movie

examination of the foreign car in¬

dustry

be

to

if

depreciates only
in

Thursday, January 5, 1956

...

in

year.
many

The Volkswagen
ways,
be
con¬

greatest sales
S.

industry

success

today,

a

doubtedly
A

great sales success, un¬
far
outstripping
the

of

its

German

predecessors.
automobile

which

must be included in this group

sports

cars

is

the

Porsche,

of

de¬

signed by the late Dr. F. Porsche.
This
to

car

one

stands

of

automobile

the

as

eloquent tribute
world's

engineers.

greatest

Its excep-

Number 5496

Volume 183

.

f. The Commercial and Financial Chronicle

(79)

Trade at the University of Illinois
ical, not only with respect to
in 1953.
of the commercial transport but for the
of the general public; those shopping in,/
Mr._ Strong is now serving as
design is so great that although towns, or involved in town driv-.
Chairman
of
the
International
propelled by a motor, small by ing in the course of business as
Trade Committee Illinois Manu¬
; CHICAGO, 111.—An internation¬
American standards (4 cylinders, well as the great commuting pubal business consulting service has facturers' Association; Director of
54
to
100
horsepower,
1,500 cc lie who must park at or near the
Institute
on
International
been established by A. M. Strong,. the
displacement which is half to a railway station. Besides, America ;
University
of
Illinois;
former/Vice
President
of
the: Trade,
third the size of U. S. motors)
is fast becoming a two or more
Chairman
of
Board, Importers'
American Na/
//- v
some Porsche models are capable • car * nation
and the vast middleAssociation, Inc. of Chicago; Di¬
tional Bank
of 125 miles per hour.
•"
class is interested in economical, 1
rector, American-Swiss Chamber
and Trust Co;
Then
comes -Tho yrhagnificfent
easy to manage cars for just such/.; He will main¬
of
Commerce,
Chicago;
Field
English Aston, Martin,!
car, to * use as shopping; local trips ; and £ tain offices at
Counselor, U. S. International Co¬
gladden the heart of the designer station runs. - European au'tomo- 33 North Laoperation Administration; mem¬
tional

excellent

performance and

Middlelon V.-P. of

Strong Establishes
Business Consulting i

styling reflect the genius
designer.
The efficiency

-

.

23

Parker

Corporation

BOSTON, Mass.
of

John

President
tors

..

of

and

—

The election

Middleton

L.

i

as

Incorporated

Incorporated

Vice-

Inves¬
Income

Fund has been

announced.

A

.

.

just la

bile manufacturers have had long

The Aston is not

and connoisseur.

but a contemporary experience in producing cars suitEvery nut and bolt in. it "able for congested areas and cars
have been tested out through the that cos^ little to run.,
,
car

Salle
■

classic.

deliberately /heavy racing v;program
engaged in by 'the ;Aston
Martin Company and the result is

;

.-

They also have
the

leng tradition:

a

production

'

of sports

cars;

Combining ,as they do high stand- :
an
automobile of proven
merit'ards 0£ roadability, braking and
every respect. Although essen- performance, these cars exercise•
tially a two-seater, the Aston will considerable appeal for many?
carry two extras if necessary and
Americans and their market in
there is generous space for lug- this
country therefore continues
gage. As a high performance auto- tn etrencdhpn
mobile for long distance travel by
„
,
..
,
.
.
the
discriminating
owner,
the
sn?a^ wonder that The f u_

.

.

Aston is without peer.
,,

several

only

and

m«*kes

,,

ladder are

of the

top

be mentioned

need

names

,

..

.

,

the

At

their
to m-

ber, Import Advisory Committee,
S. Department of Commerce;

Street,

Chicago,'" and

U.

will

member, National Panel of Ameri¬

ize

special¬
in

of these

Mr.

the

ar¬
A. M.

tional

well

in

and

Chicago

wjn(jows 0f the

jn

all

show-

new

1945

to

He

to

came

establish

the

Foreign Department of the Ameri¬
can

New York

interna¬

banking and trade circles,
the foreign banking field

in

National Bank.

He retired

as

City. A
dicate
the
ultimate
;;has -been new one is even now being corn- Vice-President df the Bank on
Dec. 31, 1955 and will continue to
reached. Although Spain produces
pieted on East 57th Street for
act as a consultant to the bank.
the expensive Pegaso and France
jaguar cars. Volkswagen also has
the Talbot, Delahaye and Delate, a new one on East 58th and MerSince his coming to Chicago,
the only ultra automobiles regularly
imported
to
the
Un.ted
are
the - -Benlley^
Rolls-

States

rooms

over

cedes Benz,

Porsche, Renault and
excellent

have

all

Rootes

show-

Mr. Strong has been active in the
promotion of Midwestern foreign

trade.
He
on Park Avenue. - The Inorganized the World
Company, America's oldest Trade Forums of the Illinois Man¬
ufacturers
Association
in 1946; the
,la,v purveyor of imported automobiles,"
claim to the title of the .ultimate,. has showrooms in both tne Eest Importers'
Association
in
1947;
in luxury etc. but.the standard is 5os and 60s and there are several the
Institute
on
International
••

and

Royce

Mercedes

-

rooms

Benz,

America has automobiles that

by no means the same.

Only
cars

a

showrooms

small group of imported

has been taken here for il

man;

dealers

automobile

imported
the

New

around

area

regularly

Austin; Ford; Borgward, etc.- foreign
merit

dividuality

as

a

the wheel
an

of

c.iarac-

common
one

slides behind

French Citroen

a

English Singer,

one

immediate-

It not only looks different but it
has an altogether different "feel,"
indicative of the fact that the in-

with the construction
from the ground up.
Although the United States is the
home of the world's most superior
comes

—

mass

produced goods, it is

a coun-

try by no means immune to the
quality of individuality, a quality
which is highly salable.

dealers

car

have

Mid

At

ing Jaguars!-<
in the

and

Decade

few

a

Beyond

short

1954, nearly $45,000,000
worth of European cars were im¬
ported to this country and this

figure has been greatly exceeded
in 1955.

Already in the

every

case

of Bri¬

of her main ex¬

one

ports to the States, except bever¬
ages, has been surpassed by automoblies,

and

in

1955;

cars

may

have headed the list. In these facts
reflected

substance

emerging, there is a
place for imported automobiles,
The migration to the suburbs and
rapid growth of two or more car
families
are
significant factors
just as are congested traffic conthat

life

managers

o

t

f
John L. Middleton

the two funds,
as

Vice-Presi¬

dent.

An

expert

analyst

still be considered to be only on
the threshold of a new era, especiallv when it is realized that
nearly 80% of the great new tide
leaving 38 others

for future

open

Between 1940
and
1955, Mr.
Strong
published
214
articles
dealing with every phase of inter¬

national trade and finance.

Own Investment Firm

LYNCHBURG, Va.—Dabney C.
frequent speaker at foreign
trade meetings and has been a Jackson has opened offices in the
guest lecturer at Northwestern Peoples Bank Building to engage
and Loyola Universities, Chicago;/ in a securities business under the
name of Dabney C. Jackson & Co.
Marquette University, Milwaukee;
He
was
formerly a partner in
University of Minnesota, Minne¬ Edward G. Webb & Co. and prior
apolis;
and the University
of thereto was with Scott, Horner 8c

a

Mason, Inc.

Omaha, Omaha.

THE

CHRONICLE

Be
Will
Published January
our

19th

"ANNUAL REVIEW & OUTLOOK" number

the opinions and forecasts of the nation's banking and
financial leaders on the outlook for business in their respective fields.
will

present

of

the

this

and

strengtn
new

business.

Rejoins
Ebersladt Organization

Simond has been
admitted as a partner in the investment banking firm of F. Eberstadt

65

York City, it was

-alone

offers

enormous

op-

2—What

Broadway, New
announced by F.

mittee

Europe has several in mass
duction.

These

vehicles

pro-

combine

good carrying capacity with great
fuel economy and long

life.

Some

maneuverable that they will

just about turn within their own
length. Initial cost is low, in fact,
there
are
several
light
weight
commercial vehicles produced in
Europe that could be sold in this
Country for less than $1,500.
The

Simond

in

chairman

joined

the

of

1950
of

the

International

Pfizer

executive

becoming

board

of

the

1932-43 he was a vicepresident and director of F. Eber&

Co.

Inc.

and

served

as




factors underlying the course

of business

are

the

major problems that your

line of activity faces

,

think will happen to prices and values of

securities

4—What impact

will the Administration's and Congress' foreign

cies and domestic program
You will find the

have

answers

on

poli¬

business conditions in 1956?

questions and many
Outlook" number of
the opinions and forecasts

to these

others in the "Annual Review &
The

Chronicle
the

featuring

country's foremost Management Executives.

opportunity to advertise your Firm, Corporation or
cross-section of America's most competent busi¬
and financial opinion which will appear in the January 19 issue.

★ Do not miss the

Bank in this composite
ness

Regular advertising rates will prevail
for space

in this number

president of that company in 1949.
since
of

1938j

director
a

in

iarge

its

Mr.
of

organization

in

July

Simond

has been a
Chemical Fund, Inc.,

mutual fund

investments

in

specializing

chemical

secu-

problems of - traffic con- rities and managed by an Eberand parking difficulties stadt subsidiary. He is also a dibecoming more and more crit- rector of the Pfizer company.

gestion

basic

country's industries.

in 1956?

Pfizer

During

years

stadt

this year's possibilities from the

on

as

com-

later

Inc.

the

2—What do you

of

hicle produced in this country but

Mr.

are

in 1956?

cals.
chairman

business perspective

in 1956?

E.

Co.,

&

your

1—What

M. E. Simond

Maynard

★ Get

banking and corporation leaders who manage the

metropolitan areas,

the

Dabney C. Jackson Opens

He is

Number of

★ The 1956 issue of

in

petroleum industry and transpor¬
tation, he has had wide experi¬
ence in study of other industries.

"ANNUAL REVIEW & OUTLOOK"

ditions and lack of parking space,
Therefore, although already well
under way, the imported automobile business in America can

portunities. There is not a single,
truly light weight commercial ve-

are

m e n

The 1956

Eberstadt, senior partner of the
firm. The admission marks Mr.
none
of the break-neck,
topsy- Simond's return to the Eberstadt
turvy kind of merchandising that organization after six years' servhas become more and more a fea- ice as an executive of Chas. Pfizer
ture of the domestic automobile &
Co.,
Inc.,
manufacturers of
business. The commercial vehicle pharmaceuticals and fine chemi-

are so

invest

is

handsome

field

200
St.,

poration,
Berkeley

>Jh

dealers are realizing very
profits with practically

Many

Cor¬

nONT MISS IT!

•••

years

During

are

of- Ap¬

the

of

automoblie

ported

tain

fices

Latin American Institute.

pattern of American

new

the im- development. And the commerindustry has cial vehicle field, which has not
become one of the most significant yet been entered, offers great posimport businesses in America, sibilities,
especially
in
main
In

Certificate

is

taken

of sales comes from only 10 states,
•

French

of

Agency; and Honorary De¬
of Master of Foreign Trade,

gree

he

40,

joining the of¬

of the local farmers are now driv-

or

ly has the impress on that here
is something with its own entuy.

dividuality

Re¬

preciation from the Mutual Secu¬

rity

since

in

equal

teristic. Whether

Government;

1 9

in

Co.

City

York

attention if firm root in all main centers and
space
permitted.
But
whether /many smaller ones as well. In one
mentioned
or
not all
have in- rather rural area of Illinois, half
—which

French

of

the

Merite

and

Boston

There are many-.are even becoming exclusive to
imported—Hill- one make, and across the country

trative purposes.
others

us-

the

of

search staff of

White, Weld

Some

Broadway.

on

President

by decree

public in 1953; the Medal of Com¬

entered

in New York in 1916.

bright indeed
signs 0f success are mirrored
appears

D'Honneur,

mercial
known

ture for imported automobiles in,
the States

Strong

Strong,

is

honorary awards
Strong are the

the

mem¬

ber of the re¬

Parker

received by A. M.

Legion

rangements.
who

Mr.

activities.

Among

in¬

vestments and

licensing

Association.

Strong plans to continue in most

problems
relating to
overseas trade,
industrial

Arbitration

can

finan¬

cial

senior

THE COMMERCIAL AND
25 Park Place,

FINANCIAL CHRONICLE

New York City 7, N. Y.

24

The Commercial and Financial Chronicle...

(80)

Union Securities

Corporation Announces
Official Appointments
of

Securities Corporation, 65 Broadway,

of the Board of Union

man

New

York

Union Securities, a leading investment banking

City.

period.

In

merely the bank's agent for lend¬

well

remember

ing money in the state. The com¬
mitment should be framed upon

ministrator
of
Veterans
Affairs
has the option to refuse to set an

the

two Assistant Vice-Presidents and an As¬
sistant Treasurer were announced by Francis F. Randolph, Chair¬

Appointments

not constitute the local originator

tionally

upon

Taking

probably know, unlike
a corporation has

you

of

individual,

and

inherent

tivities

the

from

and

Commerce

Interstate

the

the

of

intends

Constitution,
which

in

such

sive

opera¬

firm, is

wholly-owned subsidiary of Tri-Continental Corporation,
the nation's largest diversified closed-end investment company?
Disque D. Deane and Daniel Desmond McCarthy were named

as

a

Assistant Vice-Presidents and Walter W. O'Connor

Assistant

as

Treasurer.
Election of John W. Sharbough as a director of

Union Securi¬

ties Corporation, was also announced.
Mr. Sharbough, a Union
Securities Vice-President for the past nine years, joined
the
investment

of institutional sales in
institutional sales, and
will be active in new business operations.
The new director
began his investment banking career, 30 years ago, with the old
Harris, Forbes & Co. He joined J. & W. Seligman & Co., in 1936,
and served as head of the statistical department before trans¬
ferring to Union Securities. He was promoted to Assistant Vice1942.

He

banking

President in

firm

continue

will

1944.-

.

manager

as

supervision

of

'

.

.

Mr.

Deane

Union Securities in

to

came

after five years

with the Carnegie Teachers Insurance and Annuity Association of
America investment office, where he was Assistant Treasurer. He
will
continue his
activities
in
institutional
sales, real estate

financing and public pension funds.

he will

continue.

Mr.

,

.

O'Conhor joined Tri-Continental in

1932

and

worked

the accounting department until entering military service in

Continued

from

page

in

1942.

14

Investments

clients

our

maintain

such

undue

ex¬

have

we

to obtain

and

qualification.

In

tion.

Generally it is not

obtain

what I is

necessary

called

full

a

qualification in order to purchase,
service and enforce mortgage in¬
vestments, as many states permit
out-of-state

banks

to

which

obtain

limits

a

their

four main classifications with

Alabama, Arkansas, Florida, Il¬
linois, Kansas, Michigan, Missouri,
Nevada, North Carolina, Okla¬
homa,
Oregon,
Tennessee
and
as

states, if any, permit an unlimited

where express statutory
authority and administrative pol¬

qualification

icy

activities

these

to

matters.

by

Few

t-o f-s t

o u

a

t

e

Texas,

give assurance that the
chase
(and in some cases

pur¬

the
banks, largely because the prin¬
cipal business of a bank is to ac-t making) of mortgages on proper¬
ties located there, as well as the
cept deposits, which is not en-.,
servicing and enforcing of such
couraged by sister states.
mortgages are activities which do
One thing has particularly con¬
not constitute the unlawful doing
cerned us.
In some jurisdictions
of business and which do not give
the penalties for the transaction
rise to local taxation of the lender

business in the jurisdiction

by

withdraw

to

their

previous qualifi¬
eliminating the un¬
necessary tax
exposure.
In the
beginning
of
this
year,
local

cation,

thus

in

counsel

Texas

notified

that

us

the Texas legislature had enacted
a
law directing county clferks in
counties

having

600,000

or

chattel

to

and

of

ten

within

years

that

affidavits

or

more

period

a

to

thereby

pe¬

money

unless

ly

after

tel

mortgages

such

til

six

of

Previously such chat¬
were effective un¬
years after
tie maturity

of

the

loan

affected

Counties,

clients'

our

investments

set

as

in

we

fortn

Because this

problem,

the

business" laws in

our

is

some

susceptible

of

tion

which

The

question

whether

you

tne

the

"doing

states,

constitutes

t.ie

so

severe

to

as

deprive such

foreign corporation of its right to
use

the courts of that state to

force

contracts

would

ensue

for

"automatic"

where

wish

may
new

no

penalties

to

encourage

capital there is also

interest in protecting the local

from

outside.

investments

are,

purchased

en¬

and,

therefore,
property in

or

Mort¬

therefore,

from

on

local

the "off the

the "advance

com¬

A

category, including
California,
Colorado,
Pennsyl¬
vania, Virginia, Washington and
Wisconsin, is one where the car¬
rying on of a mortgage invest¬

made

on

particular

is-

investment

an

ment program,

mortgage

contract.

have to be obtained through court

monetary

penalty,

action.

may

title

in

Even

most

in

cases

large FHA loans

some

ing

Commissioner,

kansas, Idaho and Utah.

may

not avail itself of the benefits

of FHA insurance in

which

mortgage
forced

respect of
be

cannot

foreclosed

or

mortgagee

a

a

en¬

locally.

State Policy of Attracting Capital
It
of

is

the

most

current

states

out-of-state

able

has

legislation

vestment by

tions

in

public

seek

capital.

there

quence

to

attract

a

conse¬

As

been

to

consider¬

facilitate

out-of-state

local

policy

to

legislation takes

the

in¬

corpora¬

mortgages.

Tnis

form

either

of

nature

is

aspect

of

watched.

this
The

no

But

more.

method

to

arrangement

be

must

out

qualification..

the

of

bank first

question unless the

qualifies

unconditional

not

available

A

word

at
of

all

that

activities

cover

al^l

should
to

the

be

to

evident

that

seller's

than

full

doing

to

savings

caution

with

carefully
sure
they
necessary

to
in¬

the bank's interest,
servicing and buying in
the property on foreclosure and
holding the same for a reasonable
preserve

cluding

purchase,

tamount

less

make

acts

its

a

some cases

Hancock
Company

Ob¬
viously, in such states investment
or can obtain
legal
opinion
servicing and

it

is

these

in
to

business

in

a

are

not tan¬

business.

doing

failure

invalidate

It is

states

qualify
even

acquired by the bank.
a

a

while

the state

mortgage

it is essential for

scrutinized

"doing business"

Insurance

subsequent

problems of compliance with VA
are

"John

See

Life

qualification,
burdensome

un¬

Girard," 64 Pac. 2d 254 (Idaho,
1936). This results in a disability
to sue which cannot be cured by

of

happily

assigns.

enforcement of loans

qualification, which in

an

v.

to such legislation which

there is still the

ing doing
to

business

sufficient

are

mortgage invest¬
ment program, as in New Jersey.
Tax consequences of qualification
plus penalties for failure to do so
carry

on

a

may

make certain

the

District

of

such as

areas,

Columbia

and

Hawaii unfavorable for mortgage
investment.
:
7
,

There

is

legal

a

theory which

classified.

Few

free from

some

franchise

tax

states

readily

so

wholly
though
many are no problem so long as
no mortgages are foreclosed. Per¬
haps Florida wins the medal for
no
taxation, with no income or
are

tax worry,

and

banks

exempt

from capital stock tax. Aside from

paid

money

returns

out,

state

some

troublesome

are

to

tax

com¬

plete

and file annually, such as
Alabama, Louisiana, Ohio, South
Carolina, Utah and Virginia.
There

are

quiring
of

$25

Where

franchise

or

there

tax

tions which

in

I

shall

not taxable

are

from

the

are

returns

experience is that for¬

eign banks observing the

come

re¬

filing-fees

annual

less.

or

usual

states

numerous

small

on

precau¬

mention later

the basis of in¬

mortgage investments

state

concerned,

and

pay

only

a

nominal minimum tax, if

any.

Among the states where the
on
activity must be

restrictions
most

rigidly observed are Georgia
Once properties are
foreclosed
and
bought in by a
and

Virginia.

foreign bank, property ad valorem
tax liability would arise, and the
property tax
burden would be
more severe

in

a

number of states

which levy annual property taxes.

These include Arizona,

California,

Georgia,
Indiana, Kentucky,
Maryland, Rhode Island, South
Carolina, Utah, Virginia and Wis¬
Should foreclosed proper¬

consin.

ties be operated by

the bank the

from such operation would

taxation would "contaminate" the

permitted activities. Such

which

In

cannot

its

Mutual

defines

regulations

banks

income

respect

discount

where

states

cannot

banks

Connecticut.

corporation made as a
result of unlawfully doing busi¬
ness
in the particular states are
void and unenforceable by it and

not constituting the doing of
business, or of permitting some
form of licensing, registration or

of

Ar¬

In these

of

contracts

an

usually

trouble¬

included

defining permitted activities of
unqualified foreign
corporations
as

severe,

qualified

gagor's credit is satisfactory. For¬
merly this latter method raised
FHA

the

a more

which

group

states,

to

the

often

a

also be incurred.

Thirdly, there is

mort¬

provided

However,

where the defaulted mortgage can
be assigned to the Federal Hous¬

banks.

be

in

as

qualify, it may be determined that
permitted activities not constitut¬

the

second

would

which

loans

to

covering
This

state.

is

and

t

that

mitment" basis, the latter
being a
conditional agreement to purchase

properties

qualify in the for¬
eign state, and what local taxation
might be involved whetner the




apply to VA

"doing busi¬
foreign state, with the

shelf" basis

failure

a

guaranty. This,

originators, either

in

per¬

lending by

state

usually

of the bank to

bank qualified or not.
In general, direct

or

mortgages

constitutes

Even

gage

formance of business therein and,
if so, what penalties, fines or dis¬

abilities

insurance

competition

classifica¬

find useful.
here has been

negotiating, acquiring, servicing,
enforcing and realizing upon the
security of their investments in
these

in¬

mortgage banking business against

sister states,

activities

the

entry of

may

banks'

is

involved the liability for local
taxation is usually greater. While

an

next

which

presenting the papers
applicable authorities for

later.

States

The

delay

on¬

are

a

of

forthcoming

or

consequence which I shall discuss

fidavits.

Laws

the

ness" in the

the expiration of the ten-year pe¬
riod in order to file necessary af¬

Business"

advance

in

activity

them to review such loans before

"Doing

to

are

guaranty basis. More serious, how¬
ever, it is generally held that such

and Harris

able to advise

were

banks

which the guaranty

course, does not
loans
made
on
an

in

law

multi-family

Dallas

permitted
on

volved

preserve

to

date

whether

insurance will be

these liens.

the instrument.

doubt

some

mortgagee's

filed

were

all

chattel

file for

on

of

destroy

mortgages

mortgage records
riod

population

a

more

qualify,

income

by the state.

unqualified foreign corporation

are

in a foreign state
is not
practicable since it requires hav¬
ing employees and perhaps offices

en¬

clients

our

where

Local taxation is not

In the first group are such states

without qualifica¬
peril against which FHA insur¬ tion, might well constitute the
in the foreign state for that pur¬ ance or VA guaranty
offers no doing of business and would be
sufficient to
preclude resort to
pose.
This
involves
additional protection,
since
tne
investor
courts
by
an
unqualified
legal
and
administrative
costs. claiming the benefits of FHA in¬ local
corporate
investor.
In
Where
the
enabling legislation surance or the full benefits of tne foreign
permits out-of-state mortgage in¬ VA guaranty must tender to the these states the defect may be
vestment only if the mortgages relevant Federal agency an ac¬ cured, since the bank may sub¬
are insured or
guaranteed by the ceptable title to the property, in sequently qualify and thus re¬
move its disability to sue on
Federal
the
agencies, there is also the case of small residential loans,

therefore,

were,

advise

servicing may be
doing business

as

constitute

to

states

other

mortgage invest¬

re¬

gard to this question.

bank

We

with

in

activities

necessary

such

ments

held
in

such states, I am happy to
report, qualification in and of it¬

needs.

to

Certain

most

not

broad enough to cover our clients'

abled

penalties for a
failure to qualify may be imposed
on the corporation, as in Indiana,
or on its officers, as in Maryland.

complicated process and in¬
is reflected in many state court
self has not resulted in
subjecting decisions that isolated transactions
filing an application with
a
qualifying
bank
to
local
taxes
department of the
by unqualified corporations, even
in a substantial amount.
state concerned and the payment
though they are of a nature which
About a year ago I had occasion
of a
usually nominal fee.
The
would constitute doing business if
to make a rough classification of
registration and payment of this
regularly repeated, will not of
the states where we have consid¬
fee generally must
be repeated
themselves constitute doing busi¬
ered this question. (See pamphlet
annually.
In addition, arrange¬
ness.
We have felt it prudent not
"Out-of-State
Mortgage to
ments
must
be made
in many entitled
rely on this rule because of its
cases
for the appointment of a Investments," published and dis¬ indefiniteness. For
example, it is
tributed to the American Bankers;
statutory representative to accept
possible that even a single pur¬
March
of
1954.) chase of a
service of process and other no¬ Association1 in
large block of mort¬
tices or, in* some states, to desig¬ Since that time there have been
gages might be held not to con¬
several
favorable
developments stitute an isolated transaction.
nate
the Secretary
of State or
through
State
legislation
and
you
other official to accept service of
Problem of Local Taxation
process on behalf of the corpora¬ may be interested in our current

an

by Savings Banks

without

and

limiting activities.

or

money

volves

of

Out-oi-State Mortgage

For that

to local taxation,

Drastic

the appropriate

qualification

Mr. McCarthy, began investment banking work in 1946.
He
joined Union Securities, six years ago, as a preferred stock trader
and advanced to supervisory retail sales work, in which
activity

cost

advised

a

to

1951

permission, is

this

because of foreclosure

where
qualification
is
available without exces¬

posure

as

obtaining

or

ownership and operation

readily

it

"doing business." Qualifi¬
cation, which is the term used for
Daniel D. McCar.ny John W. Sharbough

the

reason,

operations, if

considers

state

tions

state

to carry on

foreclosures

of properties thereafter.

corporation must seek the per¬

mission

and

qualification

connection

long range view, the

a

depression

decisions

rights arising

clause of the Federal

Walter W. O'Connor

is

Ad¬

take an opposite direction.
Qualification may later be neces¬
sary, either because of new court

a

for limited

Except

Deane

it

the

may

right to carry on ac¬
jurisdiction other

in

than that in which it was created.

D.

that

investor must always consider that
the trend of legislation in periods

ment.
As

Disque

connection

fer the property to the VA.

and not condi¬
the bank's commit¬

loans,

mortgage

a

this

assumption that the originator upset price, in which event the
already agreed to make the holder will have no right to trans¬

has

no

to

Thursday, January 5,1956

may

after

Thus

bank not only

avoid the unlawful transaction
business

in

these

particular

states, but also to make certain
that previous holders of the mort¬
gage investments have done so.
.

The

fourth

classification

to

specify, in which special

in¬

con¬

apply with respect

bo

have

tax

taxable under local
laws, but in no case

der them

Even

advised

been

we

that

investments

unforeclosed

also

to

such

ren¬

taxable.

though

a bank may have
particular state, we
believe it is important carefully
to limit its lending practices in
that state. By so doing the bank

qualified in

a

will reduce to

to

minimum its

a

local

ex¬

taxes

which, of
course, could seriously affect net
yield. We have recommended to
our
clients
that,
regardless
of
qualification and subject to local
variations, they strictly limit their
lending activities in states other
than the one of their origin as
posure

follows:

(1)

Limit

site

inspection

of

properties and subsequent inspec¬
tions to

(2)

the absolute

Maintain

no

minimum.

offices

or

em¬

inany states except a
statutory
representative
where
required.
ployees

cludes those states, ;too numerous
siderations

possibly
income

to

(3) Refrain from instituting

or

negotiations

in

carrying

on

any

with the examination of the legal

the state and make certain in each

that

all

negotiations

consummated

in

the

instance

for conformity with ap¬
plicable regulations. We do this
having in mind a possible time
papers,

are

of the

state

*

client's origin.

which I hope never comes, when
there are widespread foreclosures

(4) Commitments and contracts
the
purchase of mortgages

for

and

should by their terms be contracts

claims

surance

governed by the laws of the state
of the client's origin and should
be executed by

(81)

The Commercial and Financial Chronicle

Number 5496...

Volume 183

It

is

such

the client only in

a

such state.

Commitments should be is¬
sued directly to the seller of the
(5)

not
case

these agencies will take

the

me

papers

here

mention

a

prac¬

concerns

many

That is, how

or

of

thje loans
This latter
financing re¬

purchasing
interim

in

an

to purchase

commitment

that

is

seller

the

issuing using
loans,

obligated to
of the

the loans regardless

make

issuance of the commitment.

to

otherwise

One method, used
of

future

furnish

funds

loans

tied

up.

with originators

good credit and stability, is to

over

the effort
and

time consuming
costly delays in

parently approved by such credit

taining corrections and additional

authorities

as

errors

Time

discussion

not

does

of

permit

various

the

problems raised and

is affiliated
&

Co.

of

ob¬

distance

and

legal
practices
make
doubly irritating and bur¬

differing

with Goodwin Harris

Toronto,

L.

Robinson,

A.

Wilson,

Chester
and

P.

(8)

Close

,

in the

'■ '

Treasurer.

Mr.

SALT
firm

legal

age,

CITY, Utah—The

LAKE

name

Federated

of

Broker¬

Inc., 42 West Broadway, has
Van Grant & Co.

Manager

of

the

Canadian

Department for A. M.
Co.

been changed to

successfully

>

7

:

>

state

foreclosed property as
as
possible and avoid
of such properties to
greatest extept possible..;
of

promptly
operation
(10)

To

possible

an

extent as

servicing

contracts

great

as

use

under which the servicer is

an

in¬

dependent contractor, rather than
the agent

of the investor.
Regulations

FHA and VA

third

The

legal

problem, FHA

and VA Regulations is, of course,
not

peculiar to out-of-state lend¬

ing, but it
formerly
ventional

may be new to banks
concentrating on* con¬
lending
within
their

states

own

unfamiliar

and

This

with*

is

the

of

Electronics

Mighty Mite

governmental insured or guaran¬
teed loans in the wider market.

shall

time

have

touch

to

-

I

only

aspect of this problem,
but a very important one.
How
far may a bank rely on the FHA
one

upon

insurance

of

evidence

VA

or

Many good things for

As you know, the Na¬
Housing Act and the Serv¬
icemen's
Readjustment
Act
of

guaranty?
tional

1944,

both

amended,

as

many

people

are

coming from

or

the

Bell

Telephone Laboratories invention of the

Transistor—a tiny

contain

a

vacuum

h t-

so-called "incontestability" provi¬

device that

tube

can

can

do and

do

more

many

things;

besides!

V
J

•

'

*

■■

protect the pur¬
guaranteed or insured

sions designed to

chaser of

a

loan against
ernmental

invalidity of the gov¬

insurance

or

guaranty

which

might result from failure
of
the
originator
or
previous
holder to comply with the gov¬
ernmental
regulations.
Unfortu¬
nately, this protection is not free
from
doubt, particularly in the
of VA

case

protection

mortgages, where the

given

is

the

If

notice?

of

to

holder

a

Wj.

What is absence

"without notice."

.

-*

SV""

J

,

•'

J-

holder

new

should have known from the loan

from

other

sources

purchase

price

exceed
the

documents

the

that

or

/

the reasonable value fixed by

Veterans

Administration,
immunity from its

claim

What

dence?

it

imprudent

be

submitted

documents

loan

require

to

not

the

with

4

it
impru¬
can

loan

U

such

Reasonable
mitment

as

Certificate

the
the

and

to

of

Certification of.

Loan Disbursement because of the

widespread
of

lenders

of prudent
requiring and inspect¬
practice

another

aspect of this

problem where the bank has any
sort
of
continuing
relationship
with

mortgage

originators.

To

what extent may the government
claim
exists

that

relationship
between bank and origina¬
an

agency

tor, thus imputing a breach of
regulations by the latter to the
former?

See

the

opinion

of

the

VA Solicitor (now General Coun¬

sel) dated Dec. 12, 1950 (Op. Sol.
No. 595-50), to the effect that an
agency

For

relationship

these

tional

reasons

investors

More

and

more

s

does-exist.
institu¬

the Transistor is

being recognized as one of thq great¬
est inventions of recent years. It is

truly the mighty mite of electronics.
All of the

ing these papers.
There is

growing uses of the

Transistor stem from its

Bell

nounced
This
seen

invention at

Telephone Laboratories, an¬
seven

amazing amplifier was soon

destined to open new doors not

only in telephony but in many other
fields. It is estimated that 15 million
made this year.

One of the first uses of
sistor

was

in the

new

in volume control

telephones for

those who have

difficulty in hearing

and in the

rural telephone sys¬

tem

that is

new

powered experimentally

by electricity generated from

sunlight

a

wide range

have

taken

siles and other weapons




of defense,

radios, television sets, computers, etc.

Royalty-free

of the Transistor is

use

available to licensed U. S. manufac¬
turers

the Tran¬

equipment that

The Bell

System, in line with its

established policy
inventions

of making all its

of hearing aids.

available to others on

reasonable terms, has
60

licensed

some

companies to make and sell Tran¬
700 companies who

sistors, and about
have the

The Transistor can

signals

Telephone

a

amplify electric

thousand times. "In
century," said an arti¬

cle in the Reader's Digest, "the
tronic tube has

elec¬

changed the world.

The effect of the Transistor on our

lives may be

right to use these devices in

Bell

up to a

less than half

the

view, with which I
concur, that all pertinent VA and
FHA papers be examined along

of electronic equipment
guided mis¬

These include makers of

through the Bell Solar Battery.

years ago.

Transistors will be

dial over
long distances. It is also being used

enables telephone users to

many

conservative

'':r<

pa¬

the VA Com¬

Value,

'i

:

is

pers?
It is made more difficult
to ignore or not require VA pa¬
pers

-

|

System

equally potent."

Stock

Kidder &

(9) Make serious efforts to dis¬

the

as

New York Manager was formerly

Now Van Grant & Co.

a

Schneider, who will act

of client's origin.

pose

and

Secretary

all

of mortgages,

price

Roger

Vice-President;
Schneider,

purchases
of
mortgages, and disburse all funds,
either loan proceeds or purchase
,

Peter

are

President;

densome.

ing prompt payment to the origi¬
nator.

where

documents

the Federal Reserve

•

inator

relationship in the state.
(7) Be certain, before
a

agency

avoiding

sometimes

or

rise to the existence of

times

repay many

cently under a cloud but now ap¬

minimize all rela¬ to assure speedy payment to the Bank, has the great advantage of
tionships with servicers, brokers, out-of-state originator. This is of permitting the savings bank to
mortgage companies, originators., interest to the bank as well as the time its acquisition of loans to the
and the like which
might give
originator, since it helps the orig¬ availability of funds, while assur¬
sible, avoid

conclusion,

Opening in New York

em¬

subject to repurchase.
method

out-of-state lenders.

(6) To the greatest extent pos¬

is

times

recent

Goodwin Harris Co. Inc.

I would like to
point out that any bank entering
upon
an
out-of-state mortgage
program
would do well to in¬
Goodwin Harris & Co., Inc. has
struct its originators carefully in
been formed with offices at 149
advance as to its legal require¬
ments
for
acceptable mortgage Broadway, New York City. Of¬
investments. This simple step will ficers of the corporation, which

governmental in¬ ployment of a commercial bank as
and guaranties. a source of interim financing, such
inconceivable
that
in bank accepting a pledge of the

tical matter which

mortgages and not to brokers.

in

In

on

rights.

Let

used

by various forms of interim

financing.

contracts

close look at the claimant's con¬

tract

met

purchase immediately upon ship¬
ment of the papers, subject to re¬
purchase by the originator if the
bank's legal examination discloses
defects. A second method widely

25

126

]

(82)

The Commercial and Financial Chronicle ..:

Public

By OWEN ELY

Panhandle Eastern

McGlade have been admitted to the firm

general partners.

as

integrated

natural

have

gas

systems.

from

increased

$24

Panhandle

operates

from

line

gas

rate

to
Lugene ti, Catron

of

trillion cf.

7

supply of about IV/2 trillion cf. (in¬
cluding controlled reserves) is equivalent to 28 years of the pres¬
Panhandle's
excess

of

billion cf. annually.

major properties is

book

value.

be

to

about

60%

Panhandle has a 25% interest in
Michigan Gas Storage Co.,
remaining 75% being held by Consumers Power. The Storage
Company operates three gas storage fields located in the north
central part of Michigan with a combined
storage capacity of 26
the

billion cf. of gas. The company now has a
daily delivery capacity
of 435 million cf. Panhandle received
$318,750 in dividends in 1954
on its investment of
$3,750,000 in the Storage Company.

Petro-Chemicals

Corp.

organized

was

in

1951

by

Panhandle Eastern and National Distillers
Products, to engage in
the extraction and manufacture of various chemicals from natural

Panhandle has a 40% interest. The company's products have
great variety of uses—for motor an$ heating fuels; in .the manu¬

gas.
3

the staff of

the

War

Commander in

the

U.

&

Company in

in

1950.

and

production of
pharmaceuticals,

'

fetra-ethyl; lead, synthetic

rubber,

explosives,

plastics,

etc. In the latter part of 1953 construction was started on
Jacilities for the production of 26,000,000 pounds of polyethylene

.

.

annually.

This plant

completed during 1955 and is operating
considerably above designed capacity; the product is said to be a
"big earner."
was

•

"

.

Commission in April, 1954. In its historic decision the FPC allowed
the company to value the
gas which it produced itself at the "fair
field price." It was permitted to retain
profits from gasoline^ ex¬
traction operations, as well as the tax benefits from
depletion and

intangible drilling expenses. Rate of return was fixed at 5%% on
original cost. While the company had to make substantial
refunds to customers, it did receive a rate increase of
about $12,779,000, and a further increase of $7.3 million went into effect last
January, subject to refund.
.

the

Congressional
democrats

January

(it has

northern gas

naturally much interested in the outcome

fight

southern

over

will

the

gas

Harris-Fulbright

attempt

to

put

through

already passed the House)

utility retailers will

that if the bill is not
passed and

late

producers this will be

a

the

while

it.

oppose

Bill,

a

of

which

Senate

in

number

of

Panhandle contends

the FPC then attempts to
regu¬
blow

the

to

industry's drilling

The capital structure of Panhandle and
Trunkline

outlook

Long-Term
Preferred
Common

Debt

$140,000,000

Stock

Stock

Equity

60%

12,000,000

5

are

approxi¬

80,000,000

35

Trunkline Gas, 12-31-54

$55,000,000
*

$232,000,000 100%

in

70%

7,000,000

8

17,000,000

22

Fournier, in

a

recent

talk

before

the

Society of Security Analysts, estimated earnings for the

share, and for 1956 at $6-$6.50. National
Petro-Chemical will
ultimately contribute about 50c-75c a share
parent

company,

has

he

said.

Panhandle

been

does

selling recently around
Based

on

this

not

plan

estimate of $6.50, the PrE
ratio

with

the

recent

76

and

any

on

would

industry

filed

a

year ago,




earn¬

next year's maxi¬

drop to 11.7.

average

around

However, the earnings estimates
presumably include the
crease

paying

year's estimated $5

ings, the price-earnings ratio is 15.2; based
figures compare

associated

was

joined

the

Stone

department

of

FHA

These
15.3.

rate in¬

which is being collected under bond.

the

VA

on

rates

mort¬

situation

a

VA

on

mortgage loans have

and

fair1

a

amount of

flexibility and a capac¬
ity to adjust themselves to change
in the capital market.
This is a
far

cry from earlier years in the
postwar period in which periodi¬

periods the

money

flow of funds

completely cut'

was

off from the FHA and VA market
because

of

rigidity

of

The

area.

interest
flexi¬

new

bility is lessened, however, as the
discounts deepen.
other

•

significant develop¬

is that, contrary to past ex¬

ment

3

page

contract

mortgages

have

now

we

which

rates in this

bond

corporate

real

estate

mort¬

so-called
loans."

"no

On

no-down

ket

basis

the

nancing terms

residential

for

payment

of

whole

a

fi¬

tnese

new

mar¬

construction

and

similar situa¬

tion will prevail next yeah. More¬

tion climbed to record levels. This

it

over,

that

is

market

a

highly

a

whose

dynamic

future

much

is

moreka controversial subject.
1

•:

4

7"'

•

*

;

'»

■

•

Mortgage Market Reviewed
In

speculating about the mort¬
gage market next year, it is help¬
ful to recount briefly what has
been happening in this area in
the

last

the

is

and

two

When

the

to

moved

in

government

porate bond yields

tion,

particularly

new

issues.

due

time,
had

At

of funds

for

the

the

same

which

availability
VA

and

the

of

first

mort¬

half

of

1953, the contract interest rate

on

gage

in

mo¬

case

drought

in
FHA

loans

the

about

of

prompt
and cor¬

VA and FHA loans

4V2%.

raised to

was

Moreover,
but

a most signifi¬
appreciated step

little

taken

at

that

to

the

amendment

time

in

an

Servicemen's

Readjustment Act making it clear
that it was legal for VA mortgage
loans

to

count.
in

be

purchased

at

dis¬

a

The outcome of the decline

government

and

yields and

corporate

the higher

tract interest rate

on

con¬

government-

insured and guaranteed mortgages,

along

with

offerings
caused

reduction

a

of

in

new

corporate

securities,
big shift by institutional

a

development has interesting im¬
plications for economic theorists
in that

it

which

the

funds

For

several months

begun

to

flow

the

the

after funds

into

institutional

built

forward
action

to

viding

for

and

modest

a
an

down

amortization

exceeding 25 years
enough to absorb the
of

1954,

great

en'arged

B,y the Spring of

in order to en¬
the desired volume of VA

FHA

vestors

terms
of

was

loans,

relaxed

and

these

institutional

made

loans

their

more

on

in¬

lending

and

more

a. 30-year
nobasisr the maxi¬
mum permitted.
Indeed, in the late
Spring of 1954 we witnessed the

down-payment

this

many

investors

mortgage

large

a

in

market

volume

of

The

.

situation

their

began to hear
payment and

re¬

that

was

funds.

of

more

Thus,
a

we

5% down

25-year or even a
amortization period.
At

20-year
the

a

time, other institutional
investors, moved by the highiy
same

attractive

yield

VA and FHA
mortgages, continued their inter¬
in

est

on

30-year

no-down-n"vmpnt

mortgages and began to make

ar¬

of

for the warehousing
mortgages with banks in order

to

raise

rangements

their

funds

above

and

regular cash flow.

instances

beyond
In

some

the

warehousing was
simply the result of a heavy com¬
mitment position and a reluctance
to go out of the market,
in me
of

saving

this

form

type
of

loan

and

of

associa¬

activity

took

increased

borrowing
from the Home Loan Bank Sys¬
tem.

Concomitantly,

the

had

a

Autumn

to

larly

the

FHA

in

country
easier

of

beginning

1954

present

anu

con¬

we

have

deepening of discounts

VA and

however,

courage

and

funds.

pay¬

period

1954

commitments.

ration

to

tinuing

ment

up

to

for

terms pro¬

pro¬

lending institutions began
adopt less easy terms in order

in

on

on

some

the VA and FHA field the demand

mortgage loans

estate

real

had

the

heavily

the Autumn of

By
of

tions

bargain.

made available

curve.

gage loans.

real

was

gressively easier credit terms, but
significant change in
interest rate, and this develop¬
ment brought about a subsiantial
shift to right of the whole demand

case

a

situation in

a

without any

investors into VA and FHA mort¬

Yieldwise tnese loans

presented

supply of mortgage
funds virtually
created its own
demand.
By this I mean that an
increasing
supply
of
mortgage

a

set in

was

in

the

to

occurred

Federal

policy

a

"active ease" in mid-1953
decline

years.

I visualize them,

as

follows.

Reserve

one-half

of events, touching

sequence

high spots

as

flow

$3.00 to yield nearly 4%.

mum

early investment experience with the

Company of Canada and later

not

equity financing in 1956.
Panhandle

his

the mortgage market, and

it is my guess

$79,000,000 100%

calendar year 1955 at
$5 a

the

served

mortgage financing was
opened and residential construc¬

was

had

Vice-President Leslie

to

had

He

jrom

for the

became

New York

later

S. Naval Reserve.

gage market next year.
This is
justified because the predominant
use
of long-term funds in 1955

bond

follows:
Panhandle Eastern, 12-30-55

-

Catron

Long-Term Capital Market Outlook

was

program, which sustains and increases the amount of
gas reserves

as

and

Mr.

the

FHA

discounts

of

gages,

in

cally in tight

Company.

cant

needed to guarantee future deliveries to
the pipe lines.

mately

Board

II,

in

and

perience, in this period of tight¬
in the capital market yields
on
corporate bonds and Govern-'
ness

The

*

'

Panhandle, while not strictly a utility company since its busi¬
is wholesale, has had some
important rate cases before the
Federal Power Commission. The
principal case involved rates filed
in August, 1951 (put into effect under
bond) and decided by the

The company is

Production

Vice-President

was

War

VA

4%%, along with the legaliza¬

The

ness

net

World

depart¬

joined the municipal bond department of Shields
1942, and became manager of that . department

McGlade

Continued

facture of high octane aviation gasoline; and for
;✓

and looking for¬
likely to occur

is

increase

on

tion

Shields & Company in 1952.

in

regulative situation is clarified,
Line, which at present produces no gas of its own, will
probably enter the production field. It now purchases its gas from
independent producers in the Gulf Coast fields, the majority of its
contracts having a minimum term of 20.
years.

*

on

a

business

new

Before that he

During

McGlade

Once the

Trunk

National

ago.

Inc.

H.

with the Empire Trust Company of New York and
Hayden

Replacement cost of

estimated

Co.

Sun Life Assurance

The over-all gas

ent output of about 420

year

&

as

Mr.

estimated at 3l/2

now

a

Eberstadt

was

cf. of open-flow capacity have
reserves,

became associated with the

Mr. Locke

estimated 92 billion cf. in 1955 and will

1956.

F.

'iiiomas

nonier r. Locke

of the firm

ment

price" decision of April 15, 1954, the company greatly in¬
its exploration and development activities.
Natural gas
production from Panhandle's own wells has been stepped up from
in

the

of

creased

more

the

past

year, there are two signifi¬
developments which should
be kept in mind. First, by virtue

Following the FPC "fair

or

in

the

cant

field

In the past year 1,160 million
been added to the company's own

in

next

the

Mr. Catron

probably be further increased to 110 billion cf.

7

develop¬

occurred

market
what

to

the

at

months,

several

Panhandle produces only about one-fifth of its gas needs, but

an

back

which

ward

souri, Illinois, Indiana, Michigan and Ohio.

1954 to

Mortgage Market Ouiloak

mortgage

line of Tuscola, 111. Natural gas is sold principally for resale in
412 communities with a population of 12,300,000 in Kansas, Mis¬

79 billion cf. in

expansion of creait
saving and loan associations.

ments

tie-in with the Panhandle

is rapidly expanding its own production.

the

Looking

Mich., with a daily
capacity of 1.4 billion cf. The subsidiary Trunkline Gas (97% con¬
trolled) operates a 1,300-mile line with a daily capacity of 255 mil¬
a

25

expansion of warehous¬
ing of mortgages and similar ac¬
tion
taxen
oy
the Home Loan

I

Texas Panhandle field to Detroit and Saginaw,

lion cf. from the Texas Gulf Coast to

of

action

the

to restrict the

During the postwar period
million to $91 million; share

5,816-mile natural

a

period

had

by the Federal Reserve to

curb

to

earnings from $2.14 (after adjustment for a split-up) to $5.00 and
the dividend from $1.00 to $3.00; while the price of the stock has
advanced from the 1945 low of 12 (as adjusted) to the recent 1955
high of 88 (now 76).

/.

taken

also

Bank Board, but relaxed recently,

Pipe Line Company

Panhandle Eastern Pipe Line is one of the most successful of

the

revenues

We

years.

The investment banking firm of Shields &
Company, 44 Wall
Street, New York City, members of tne New York Stock Exchange,
announces that Eugene H.
Catron, Homer F. Locke, and Thomas H.

Utility Securities

amortization

mum

Shields & Go. Admit Three New Partners

Thursday, January 5, 1956

certain
and

for

credit

of

areas

those

and

with

mortgage

brought about by the
events

in

the

which

I

action

the

FHA

payment

the

con¬

lending

sequence

have outlined

Summer

the

the

terms.

The stimulus to residential

struction

on

mortgages, particu¬

taken

of

this

year

of

led

to

by the VA and

requiring
on

a
2% down
Government-insured

and guaranteed loans and

a

maxi-

ment securities

have shown

a

re¬

markable degree of stability. Tnis
means
that we have not had in

months

recent

the

lure

cf

rising

yields on new corporate
offerings to attract money

bond
away

from

the mortgage market.
The
explanation of why corporate and

Government security yields have
risen much more in the face

not

of

in

the
long-term
puzzling to in¬
explanation is the

pressures

funds

is

market

vestors.

One

heavy concentration of investment
by pension funds and state andlocal funds in corporate and Gov-1
ernment securities.
By and large

these
in

institutions

the

to

active

not

are

mortgage

market.

Added

this, institutional investors

tive

in

ac¬

the

mortgage field, in
raising additional funds to invest
in
mqrtgages, have as I noted
frequently followed the policy of
resorting to warehousing arrange-',
rather

ments

tnan

Government

the

to

securities

sale

or

of

corpo-;

rate

holdings.
Restrictions- on
warehousing
may
change
this'

situation.

What, then,
of

of

all

the implications

are

tnis

the

lor

real

mortgage market in 1956?

estate

Look¬

ing first at the supply of mortgage
funds, it would be my guess that
we

shall

not

see

diminution

any

in the over-all

supnly of mortgage
year.. However, there

funds

next

may

occur

toward

loans

further

some

conventional

mortgage
in

loans
the

and

shift

residential

to

industrial

mortgage
and

com¬

mercial category because of rela¬

tively

attractive yields and
The volume of

more

bigger

demand.

funds

available

loans

should

will

be

for

and

VA

high, but it
determined primarily by

the maintenance
in this

FHA

remain

area

of

flexible rates

and more

importantly

by the demand for FHA and VA
loans.

Turning to the demand side of
the market, I believe that a high
level of national income will lead
a continued
expansion of con¬

to

ventional residential
mortgage fi¬

nancing and
commercial
gage

loans.

tive

effect

a

further increase in

and

industrial

mort¬

A great deal is being
said these days about the restric¬
of

the

on

2%

25-year

demand

side

and

amortization

connection

mortgage

with

could

VA

period
and

in

FHA

loans.

shudders at the

relatively

the

down-payment

easy

have

Although one
thought that these

financing

much

effect

terms
cn

the

housing market, there is general

Number 5496

Volume 133

five-year

that/' the

agreement*

amortization

shorter

The Commercial and Financial Chronicle

...

period

cut into the number of

does

rke in 1955 and This Year's Oullook
Bond Market

are

the

riod.

certain to

political

pe¬

will

pressures

bring

of the time in which it

economically justified.

>

General Conclusion

My general conclusion is, there¬
fore, that 1956 should witness
another record expansion in the
volume

real

of

indebtedness.
that

What

a

the

about

balance

Federal

tent

next

to

rather

investors

other

find

to

attractive.

It

be
ex¬

rates

this

If

the

Treasury

and

continues

we

situation in which

a

find

may

it

more

advantageous

more

Stuart & Co. Inc. said in its
year-end survey of the

sey,

annual

bond market.

both

the

bond

taxable

markets

and

will

tax-exempt
active

be

lengthen its maturities. With
spect
to
the
level
general
yields oh long-term Treasury

to
re¬

of
se¬

activity of pension and state and
funds

this

in

In

its

discussion

"The
rates

increase

rities,
that

regard to corporate secu¬
it seems logical to expect

the

volume

ferings in
the

of

order

same

net

will

1956

of¬

new

be of about
this

as

year.

Again, because of the concentra¬
tion of pension funds and state
and locaf funds, I do not antici¬
pate any .appreciable improvement
in

yields

publicly offered

on

se¬

curities.

However, if the market
long-term funds continues as
tight as I expect it to be, I think

for

it is reasonable to anticipate some
moderate

rise

of

area

of

yields

corporate

in

the

securities

di¬

rectly placed with investors.
•

In

the

of

area

state

about

should
Of

bring out
the

of

we

hear

that

1956

large volume

a

in

securities

view

indicate

to

seem

local

and

financing the plans which

this

over-all

In

area.

situation

in

the capital market, we may like¬
wise see some moderate improve¬
ment of

yield here.

Finally,
look

for

market
up

the

in

of

the out¬

on

long-term

capital

1953 might be summed

First

follows.

as

ment

views

my

long-term

invest¬

the

funds will be

carried out in the environment of

highly
ondly, in

active

mand

funds

a

the

for

Sec¬
the de¬

economy.

aggregate
will

outrun

the

supply of savings and will create
a
pressure for further expansion
of bank credit. Third, in the face
of this pressure

I expect the Fed¬

eral Reserve to continue

tive

restric¬

a

of

natural
interest
firm

policy and t""at as a
policy, plus the
market forces, long-term

of

this

rates

and

generally

some

may

will

be
to

move

moderately higher levels.

a

in

short

-

term

'wait

see'

and

attitude

funds, which further strained

the short-term market.

attitude
of

evident

was

A similar

institutional

some

the

on

formed

with

Co.

offices

has

at

25

been

Broad

Street, New York City, to engage
in

a

are

securities business.

Morris

Eugene

Z.

Ross,

Partners

Pasternack

general

and

partners,

and

Harry Sackren and Harold
Steinberg, limited partners. Mr.
Pasternack was formerly a part¬
ner

in Kamen, Pasternack

& Co.




offerings

of

in

sold

con¬

rate

same

in the preceding year,
million

railroad

certificates

at about the

tinued

as

with $173.5
and $174.5

1955

million in 1954.
"The

consumer

active

credit

both

with

industry
debt

and
a

was

manifested by a reduction in

corporate bond offerings from $7.5
billion

lion

1954

in

in

1955.

about

to

$6.9 bil¬
of tax-

Offerings

exempt bonds, due largely to few¬

in

factor

sustaining
long-term
the face of substantial
Ac¬

in

declines in short-term prices.

tually, long-term prices in both
the : corporate
and
tax-exempt
within

fields, fluctuated

than ..prevailed

limits

/.

year

:

business

was

of

ments

of the few seg¬

one

the

which
failed to enjoy the general boom.
Agriculture was plagued by oversupply, coupled with the rapid re¬
covery and expansion of food pro¬
duction in foreign countries.
In
the bond business, however, it was
not
a
question
of
oversupply.
Here

economy

deterring factor was the
outpouring of real estate mort¬

which
the

in

crease

of

alone

provided
first

net

a

in¬

months

nine

billion, an
amount exceeding all of 1954's net
increase
of
$12.5 billion. • Also,
$13

some

industry

business,

the con¬
chiefly

and

turned to credit

sumer

short-term

fill

to

—

requirements

money

added

created

"The

but

financing,

in¬

devel¬

strong momentum

limitations

some

industry
year end,

to

further

expansion were beginning to as¬
sert themselves.
Shortages were

basic materials,
labor shortages were showing and
restrictions on the supply of credit
were having their effect. Especial¬
appearing in

some

ly was the latter true in home
building and consumer borrowing,
both of which had been big con¬
tributors to the high level of busi¬
in

activity

1955, and more
recently it has been evident in
business borrowing.
ness

"The

long

exceed

1956

even

these

If

1955.

construction

range

of industry still point
Projected programs for

programs

of

records

the

programs

fol¬

are

lowed, a good volume of debt fi¬
nancing is in prospect, especially
among
the utilities which nor¬
mally issue long-term bonds for
construction of plant and equip¬
"Home

in

credit
slacken

which

mortgages,

probably

1955,

in

volume

under

fluence of the rather

gentle mort¬

in

constructed

homes

since

the

end

of the war also may serve to slow

home

up

building and mortgage

borrowing.
"In

the

tax-exempt

the

field,

big revenue issues of recent years
may not be forthcoming, but the
nation's growth will continue to

high volume of smaller
municipal offerings, as

$2 billion, as against $7.5 billion
and about $2 billion, respectively,
in 1954.
Some $4
of the

the rate of economic expansion

about the

same

as

less

"Credit

being

20%

were

for

favorable

of the

15%

the

1954

ofrthe

public

re¬

bond

total

1955 total.

utilities

field,

electric, gas, water and communi¬
cations financing totaled $3.4 bil¬

lion, of which $2.5 billion were in
debt obligations?? A year before,
the totals were ?$4.3 billion and
$3.5 billion, respectively. The de¬
cline

in

utilities' issues

reflected

the less favorable market in 1955.
"Aside from

ing,

railroad

ex¬

retarded.)

This

may

is

be

the

publicly,

retire other" securities declined

from

be

may

in 1954.

Also,

equipment financ¬
issues

publicly of¬
million,

fered in 1955 totaled $438

long-term offering by
department would

any

Treasury

have

a

prompt

influence

on

the

long-term bond market.

funding operations, and issues sold
to

policies

pected to continue to exert a pres¬
sure until it becomes evident that

"An over-all

ac¬

tivity, which is certainly prefer¬
able to a runaway boom and the
severe
decline which inevitably
follows, will bring some easing in
demand for credit.

The potential

supply of long-term bond financ¬
ing which appears in the making
and the continuing growth of in¬
vestment funds of the principal

investors indicate
a
well balanced supply
and
demand relationship in the
bond market.
This should result

long-term
reasonably

in

a

the seller's

comparatively

structure

over

stable

price

the year ahead."

if

have any other ideas of
I would appreciate your
advising me.
Meanwhile, with

when he invests in securities.

kindest

savings of

lifetime

a

The

entrusted

are

I

regards and good wishes,

remain,
•

.

•

«

to another and the results of good
bad

or

investing

certain.

swift

are

believe that

I sometimes

people stopped to realize the
implications of this relationship
certainly

would

it

make

a

point to "buy the investment firm
and the man with whom they are

doing

they
have found that they have the
proper
advice they < should con¬
fine

business,"

their business
this

to

and

one

once

when

possible
and
firm.

person

cluded
and

results

closed

and

ac¬

your

counts you

them

will find that some of
not
emotionally
to turn over all their

are

equipped

S.

which

is

ingredient to such
between

buyer

those who

are

than

more

handle

a

The

inventory form
think it will help me to

was

along

with

a

"How

about

soon"?

pleased

all

their

have

to

you

in

transactions

first sale

Smith to

Harold

Manage

TO

in

ACHIEVE

CERTAIN

JECTIVES THAT
MOST

THEM

HELPING

OB¬

they:find
Find

DESIRABLE.

out

NOW—OR
you

Find

LATER.

their

about

can

Their
income
tax
status,
their
ability to save, their inclinations
in
investments
(speculative
or

Sam
as

part¬
in charge

ner

of

Baches

Beverly
offices.

Mr. S

all

out

problems.

i t h

m

joined the
f i

m's

r

New

York

office

staff

in

and

1922

became

a

the personal
likes
and
dislikes
(prejudices)
they may have. Then go to work

partner in
1937. In addic¬

for

tion to activi?

conservative),

them

and

by showing them your

interest.

of Telephone

Up

Sale

Several months ago I had a re¬
ferral

from
that

me

would

like

Doctor,

busy

invest

to

who

of his colleagues,

one

another

was

client

valued

a

in

new

a

issue that I had offered to my cli¬

He said that he had told him

ent.

about

that I

and

me

fore

I

not

available

not

was

message

he could call

venience.

call

a

back at his

me

he

He said

this and after
we

when

that I would leave
with his secretary and

concluded

Several

our

Smith

the

firm's

and

comments

se¬

25 years.

During his 33 years with
he

firm

reputation

The

achieved

as

a

;

market

on

economic

and

national

a

writer

develop¬
•'

.

•

■

Beverly Hills offices when

opened next month at 445 North

Roxbury Drive

will have

staff

a

of between 25 and 35, according to
Smith.

Mr.

tered

This

includes

regis¬

and

office

representatives

assistants.

con¬

appreciated

Now Allan, Miller,

brief conversation

a

Mr.

of

the

ments.

necessary,

continued,

curities recommendations for over

that I appre¬

telephone

market an¬
departments*

author

market

brief

him
unless I had something of im¬
portance to tell him. Also, if he
was

been

com¬

busy and there¬

was

would

Bache

had

a

made

and

research

Mr.

the

We had

ciated that he

and

trends

talk

after he

fiduciary

alysis

daily

Smith

J.

Sam

the

firm's

tele¬

should

phone his Mend.
and

in

ties

/

Exchange

Co., has announced

resident

Hills

INCOME

of

Smith

J.

sideration

—

senior partner

appoint¬

new

them

HILLS, Calif.—

Bache,

firm Bache &

which is the most important con¬
to

L.

of the New York Stock

ment

interested

can

New Bache Office

the

only

in a
have
open the

you

desirable business

BEVERLY

plain to them that

are

letter

relationship.

securities if you will first make it
you

day

some

interest

after

most

a

me

said,

short

a

your

CLIENT

door to

which

luncheon

shows

to

returned

note

Sometimes

necessary

inclined will be

so

please do so."

form

relationship
seller.
But

a

and

"if

personal

you

business, and thereby establish the
confidence

sent

was

letter:

the

on

work with you,

made your

better.

are

envelope,

P.

would like to fill out the en¬

you

NEW

the

return

this

ered that their minds

By making d""#tudy of

also in¬

personal inventory form

a

a

with

that

relieved

-

This short letter, which

v

Many investors do this. They are
loyal because they have discov¬
are

'

•

Very truly yours,

and

if

current

you

your own

talk.

weeks

later,

after

Groezinger, Keesiing

he

had

paid for the stock he had
bought and it was delivered I sent

& Martin

him this letter:
SAN
Doctor

Dear

Since you

leveling off in

any

buyer

for high

build
capital, providing we are
successful in selecting worthwhile
growth situations.
If this is of interest to you and

honesty and
ability to the extent that he does

a

looked for in the next few months.

"Market conditions in 1955

somewhat

a

and

state

pillion

1955 bond total wercrsold

on

the

where

mitment I told him

in 1955.

with

compared

relies

who

$9.5
billion in
1954.
Of the 1955 total, bond fi¬
nancing represented about $6.9
billion and stock financing about

about

business

buyer

hardly

is

there

other

in¬

the

The tremendous number of

lorce.

of relation¬

between

occur

seller,

told

require

was

both

that

and

will

credit restraints already

gage

various kinds

the

ships

ab¬

much of the long-term

so

bonds and stocks,
$8.9 billion in 1955,

cluding

all

much

In this way you can

up your

When you realize that of

Follow

sorbed

strive too

activity.

ment.

by

burgeoning production and distri¬
bution of goods.
"Total corporate

$1

oped by business and
during 1955 continued at

a

return.

and

—

the

approximately

With reference
to
this
year's
probabilities, Halsey, Stuart & Co.
express the following opinions:

a

gages

in

The Outlook for 1956

upward.

the £ bond

"Like /agriculture,

of

73%

billion and 70% in 1954.

narrower

the

'..'-f;

before,

against

bonds,

it

about

is

PERSONAL and intimate type of

they

part

investors.

The impact on corporate financing

to about

Form Pasternack Co.
&

the

the

on

part of corporations seeking long-

"In

Pasternack

offered

substantial amount of 1955's total

develop¬

obviously had some influ¬
long-term rates. It created

term

crecit

result

"Public

ence on

prices

area..

'

With

publicly

before.

equity issues and accounted for

1955 In Retrospect

er offerings of revenue bonds, de¬
curities, I do not anticipate any
clined about $1 billion from the
major change next year because
of the relatively scarce supply of preceding year's record high. The
recline m volume was a potent
long-term securities and the, heavy

local

obligations
year

in

predicted.

survey

the

$267.5 million total of all railroad

was

1956, the

exceeded

alone

equipment trust

the momentum devel¬
oped by business and industry
during the year is continuing to
create a need for financing and
so,

Ohio

more

long-term

above

trend

could witness

that failed to enjoy the
general boom times of 1955, Hal¬

which

bonds

&

offerings,

in which short-term

rise

may

rates.

the

of

Baltimore

of

the survey commented as follows:

There
is
one
interesting
possibility which presents itself,
namely, the trend toward a pat¬
rates

segments

issue

con¬

will

outlets

few

economy

likely, there¬

seems

the

of

as

business

investment

re¬

$280 mil¬

a

financing.-Companies in the field
totaled some $1.7 billion in 1955

area.

of

lion

credit, joined agriculture

the

among
was

ments in the bond market in 1955,

fore, that the bulk of the refi¬
nancing will be in the short-term

tern

term
one

The Personal Touch!
The

of which 92% represented refund¬

ing.
Outstanding
funding offerings

refunding,
that many

imagine

institutional
tinue

great

any

long-term

some

I

that

will

year.
There will be a
the part of the Treasury

on

do

but

to

the

First,

business, hampered by

the nation's extraordinary demand
for short-term rather than long-

Even

appear

Government

borrower

desire

be

of

capital market?

brief, it does not
net

will

firm to rising rates.

on

long-term
the

mortgage

lending

mortgage

done

in

estate

Moreover, I expect

The bond

By JOHN DUTTON

credit marked 1955.

sumer

longer amortization period

a

far ahead

.

year's activities, cites prospect of a com¬
paratively stable price structure in 1956 with future industry
construction programs exceeding last year's level. Reduced
volume of corporate and tax exempt bonds, less favorable
refunding operations, and a good year for rails and con¬

restoration

a

amortization

30-year

after reviewing last

Indeed, it is a gocd bet that

about

is

see

Securities Salesman's Corner

"Year-End
ad B^ond
Be
Survey" of the Halsey, Stuart & Co. Inc.,

qualify tor a Governmentor guaranteed
loan. If a
relaxation
of
inflationary pres¬
sures
in
homebuilding permits,
can

of

27

people who

insured

we

(83)

fice

I

are

thought

terested

in

busy at your of¬

you

reading

might be in¬
views re¬

my

garding what we might be able to
accomplish by working together
on investments in the future, and
some

of the

ment

that Dr

friend)

and

philosophy of invest¬
(his
I

have

found

to

be

successful.
The

on

cur¬

rent

income, and short-term cap¬

ital

gains

have

made

zinger
1

(under
it

more

six

months),

desirable

preciate in value, rather than to

Oct.

announce a merger on

with

firm

the

of

Keesiing

&

the

general practice of law under

the

name

zinger,
the

of

Allan, Miller, Groe¬

Keesiing

following

B.

&

Groezinger,

Keesiing,

Martin

partners:

Dudley F.

Allan,

land

Joseph

with

Thomas

Miller, LeH.

William

Martin, Jr.,
and Paul A.

Robert Metcalf Jones

to

seek out investments that will ap¬

Calif.—The

Miller & Groe¬

Keesiing and that it will continue

A.

high income taxes

FRANCISCO,

law firm of Allan,

,

Schumann.

Offices are located at

400 Montgomery

Street.

28

[

(84)

Continued

jrom

Problems Relating to

of inconvertible foreign
exchange,
and excessive dependence on con¬

ing

area.

trolled markets.

The trade policy
of the United States is of .vital im¬

ing trade and payments discriminatidns, and effective international

portance

economic

be converted into all

can

the

costs

of

Apart from this, there has been

..

steady approach in the equiva¬
lence, of sterling and dollars in
the exchange market.
American

sterling, representing

bloc) added about
$2.5 billion to their gold and dol¬
lar reserves. In 1954, they added
another $1.7 billion to their re¬
serves.
The replenishment of re¬
serves is continuing, although
on

served

a

a

the

by putting dollar goods in
price range beyond the reach or
In the actual event, severe im¬

port restrictions could not provide
the

reconstruction

for

resources

the scale and at the pace that

on

proved to be necessary. Import re¬
strictions had to be supplemented

by

of/ consumption

rationing

in

aid

postwar

so,

from

States, Canada,
tries, and from
stitutions

the

and

United
coun¬

international

indispensable.
we must not

was

time,

same

the

other

in¬

At
un¬

lar

They
tion

ments deficits of

self-denial.

Large and gen¬
though foreign aid was, the

erous

greater part of the

resources

reconstruction

from the pro¬

duction
own

savings of their

people.

Extent

of

Postwar

vV v-"

.

came

the

and

for

The

Economic

Recovery
reconstruction

of

wartime

damage and the resumption of
disrupted trade have been virtu¬
ally

completed

in most countries

hard hit by the

A far better

war.

recovery has been made this time
than after the First World War.
The world economy today is
pros¬
perous and strong. We have good
to believe that most

reason

tries will

coun¬

deal with their internal

end

external

in

a

broad

It

is

economic

and

these

for

problems

constructive

way.

that

reasons

the

Managing Director of the Interna¬
tional Monetary
Fund, Mr. Ivar
Booth, has said ."that the condi¬
tions

that

necessitated

the

post¬
war transitional
arrangements are
passing away."
The

extent

to

which the world

actual

in

inflationary

rope,1 for example, industrial pro¬
in the first half of 1955

duction
was

about

70%

mediately

higher than im¬

before

the

the .increase

course,

Of

war.

in

the

gross

national product is not as
large as
the -increase in industrial
produc¬
tion, and allowance must also be
made for the fact that their
poou-

Jatioo is
than it
*

-

A

"about

now

was

13%

higher

in 1937.

recovery has taken
place in world trade- In the first
half of 1955, the volume of world
trade
was

fore

(outside the Soviet bloc)
nearly -70-% -larger, than be¬
the

Most

war.

of

.

this

inr

has taken place since
1948,
and much of if is
accounted for
by the expansion of exports of the

crease

large trading countries of Western
and

Northern

Europe.

While the

dollar value of total world
exports

below

the

count

sterling
such

£240

about

in the
dom.

Such

million

dom, most

of the United King¬

reserves

deficit

a

is

not

stuffs,

large

ones,

compared either to the total pay¬
ments

total

the

of

sterling

production

Kingdom.
sult

the

demand

United Kingdom

and

a

the

world

has

moved

country

every

for

dollars.

has

the

was

in

Not

world's

dollar,

there should be"

tience that

continue
must

t,

,

lead

not

convertibility
This

is

a

transitional

impatience

in

however,

to

will behave
rencies
vertible

a

A

substantial

very

increase

has

part

been

in

this

of

exports

to

dollar countries.

—The

growth

redirection of world trade has
|jeen the emergence of a surplus
-the overall dollaraccounts, in-

eluding, aid,
1 These
CAftnltridf

•

of;.the

rest,, of. the

data refer :td the
'

I TmIA. J

we

relative
better

1/

I

following
nine
*
f"?

.

.

/•»

of

terms,

how

we

close

now

"embraces

all

side-the sterling-area and the dol¬
lar area, has added
enormously to
the

-

multilateralization

countries

are

not

convertible.




of

sterling

trade,
can

be

used for payments to and from all
countries except in the dollar
area,

in balance.

These

difficulties

are

not large in magnitude and they
should be overepme in the coming

year, now that more forceful poli¬
cies are being put into effect. It
is

understandable

that

converti¬

bility of sterling should be put off
temporarily to a more favorable
time.
The problem, however, is
not wholly one of timing.
There

is

tendency

a

in

if

the

and more nearly
dollars through de

convertibility
market,

in

the

payments

for

purposes

away.

the

ex¬

reliance

discrimination

It is

on

balance

will gradu¬
an

difficulties should
strain on the
gold and dollar reserves with con¬
payments

rary

involve

greater

no

vertibility than they do now. Di¬
rectly or indirectly, the United
Kingdom is already paying gold
and

dollars for the deficits of the

sterling
is

area

The only protection

area.

the

for

of

reserves

the

sterling

strong payments position.

a

Nevertheless,
Britain

have

sistance

to

people in
emotional re¬
convertibility.
They
many

great

apt to associate convertibility

are

tion

in

the

standard

when

1920's

the

is at

illusion

con¬

used

in

held
So long as-world trade

was

and

high level,;dollar, payments
are well-balanced, and dollar mar-*
kets
open
and prosperousi^few
be^wiUing to enter

into special arrangements involv¬

ing

discrimination,

the technicalities of the
provisions to delay

on

transitional

unduly the restoration of converti¬
bility.

the

As

Chancellor of

the

Exchequer said at the Annual
Meeting of the Fund in Washing¬
in

ton

1954:

"Article XIV of the Fund, which

permits

fairly facile

a

strictions

of re¬

use

deal with balance

to

of

payments difficulties, was intended
as

temporary provision to deal

a

with

the

difficulties

situation.

war

of

the

There may

post¬

well be

danger in continuing for too long
transitional

a

kind.

provision

of

this

It is important that the in¬

ternational

rules

and

regulations

correspond

with

the

realities

conditions." ;,?

current

of

:: "

;

-

The practical problem is to find
the

to

means

sitional

from the tran¬

move

arrangements

permitting

accumulation

bility, with exchange restrictions
and discriminations

Fund
to

Agreement.

this

subject to the

The movement

regime

new

complished

be

must

ac¬

without

risking the
progress already made in strength¬
ening the pattern of world pay¬
With goodwill and mutual
understanding among the great
trading countries, with leadership
and strength provided by the In¬

ments.

ternational

confident

Monetary Fund, I am
that

this

problem

can

be met.

W. T. Grimm Go,

the abortive attempt to undertake

convertibility in 1947.

Elects Officers

And when

payments difficulties do arise, as

A' CHICAGO,

they must from time to time, they

of

will

somehow

attributed

be

to

This is a practical
political obstacle to early sterling
convertibility.
There are some real problems
convertibility.

that

must

dealt

be

with

before

change

a

Co.>

'

from

111.—Announcement
by W. T. Grimm &

Street;

231' South LaSalle
a
proprietorship to

a

cor¬

poration, and election of four new
vice-presidents, was made by W.
T. Grimm, President.
The com¬

other countries should not impose

a financial consultant firm
specializing in direct placement
and negotiation of mergers
for
industrial
corporations, was

restrictions

founded

sterling is made convertible.

The

United Kingdom is concerned that
discriminations

and

against the sterling area for the
sole purpose of converting sterling
into
gold or dollars. Countries

pany,

loans

in August, ,1951. • W. T.
President, was formerly
associated with Kidder, Peabody
& Co., and prior to that, with the
First; Boston
Corporation.
The

Grimm,

contemplating convertibility need
assurance
that they will not be firm is a member of the Invest¬
hampered in competing for world = ment Bankers Association and the ;
trade by such measures, particu¬ National Association of Security
:,
larly
systematic
discrimination» Dealers.,.:;- Jv. iv• .>.: •' vv/:' >.
through bilateral agreements. The ; New vice-presidents appointed
Fund is already taking steps to are Frank D. Foss, in charge of the
secure the full collaboration of all
Direct Placement Division, J. Fred
countries in reducing and elimi-, Risk, v to head, up the Sales and
mating as rapidly as practicable,- Merger Division, James S. Myers
.

their reliance

on

bilateralism.

to

The United Kingdom also needs
assurance

direct the New Business Divi¬

sion,; and. Lue D. Cramblit, who

in charge, ofc the firm's
with converti-* West Coast office in Los Angeles:

of adequate reserves to- MU-be

enable it to proceed

bility of sterling when conditions
Once the converti¬

favorable.

bility of sterling is undertaken, it
become

must

of

every

settled

the

British

policy

Government

to

Roberf

NEW
E. ;

ORLEANS,' La. —
Hepinstall ;-iss-t, conducting.

a

maintain it in accordance with the

securities business from offices at

Articles of Agreement of

2925

Coliseum

There is

firm

name

ever

ment,

the Fund.
a
possibility that when¬
sterling is made convertible,

ticularly
ments.

some

through

immediate im¬

capital

Even*though such capital

probably soon
be
reversed, reserves should be
available to meet this contingency
to

once

is

that

convertibility of
undertaken, can

be in doubt;
a

confidence

give

continued

..

previously

Newman

& Ce.

Mr.

Hepinstall

with

Randolph

and

Renyx, Field

& Co.

would

movements

and

was

Street, under the
Hepinstall Invest¬

of

Services.

move¬

ster¬
never

The Fund has stated

of occasions

number

prepared

the

to

generously to

that it

■ use
its resources
helo countries un¬

dertaking convertibility.

•

a

countries will

fear that countries will

no

depend

gold

restored, or with the
rapid depletion of reserves during

on

reserves.

have

I

at this time with the great defla¬

ling,

payments

moving
mul¬

inconvertibility to the permanent
petition of convertibility. Tempo¬ arrangements
requiring converti¬

inconvertible- eurreney- will

indefinitely -to- be

are

payments based
convertibility of currencies.

the

on

the

United Kingdom to exaggerate the
adverse effects on sterling area

believe that a great trading
country can attach-, to itself- a
large trading area in which an

as
-

are having some diffi¬
keeping their payments

area

culties in

pact on the exchange market, par¬

more

international

out¬

basis.

currency

practice,

tinue

which

countries

convertible,
is not con¬
even

-

to

area,

jura and

to

the

account

currency

de

ally-pass

like

convertible

a

there will be

of

in

being con¬
sterling area.
particular, the widening of the

transferable

on

sterling and other leading
European currencies : become, in

change

much

see

currency

come

vertible outside
In

since transferable
these

can

a

the

equivalent to

dollars.

question

are

As

funds, others

convertibility

fact

provisions of the Fund Agreement,

cur¬

are vast

equivalent to

think

sterling has
of the

consequence

afid

rn

almost

are

in

cur¬

country clings to. the transitional

If

1948

1955, the dol¬

of

large and

though their

as

are

if

even

rency is said to be either convert¬
ible or inconvertible. As a. prac¬

tical matter, there

are

competition of con¬
vertibility.
As
the
world
ap¬
proaches such a pattern of pay¬
ments, we shall find that countries

terms.

fallacy:

convertible,
arises why there is
taking the final step
of placing international payments
the

heightened

years.

absolute

common

rapidly

earnings

strong and balanced pattern of
international payments under the

tendency to think of

a

being

dollar

such conditions, it should be pos¬
sible to establish and to maintain

Convertibility of Sterling

There is

are

The

for

necessary

a

bility during the past few

,

King¬

there is good reason to expect that
they will continue to grow. Under

overlook the notable progress that
has;been mqde toward: converti¬

De Facto

United

the rest of the world

some

the

us,

the

conditions

attained.

payments

This
_

in

convertibility

desperate

impa¬
inconvertibility should

under

curren¬

v

The

position been so strong or its pros¬
pects so promising. Under, the cir¬
cumstances, it is understandable
that

basis, witnout

tion that prevailed only five years

generation

a

on

imports of these countries and in
comparison with the discrimina¬

way since balance of payments
deficits were measured in billions
and

substantial

and
the
sterling area, al¬
though not negligible, is.relatively
small in comparison with the total

long

a

a

dom

ago.-

The

In other ster¬

countries,

What remains of dollar dis¬

Europe increased by nearly 90%.

between

ex¬

all the major
imported with¬

be

now

crimination

our

cur¬

almost

were

cooperation

not. payments of the heightened com¬

are

materials and food¬

raw

competitive price

cies.

It is heart¬

ening to have the Chancellor of
the Exchequer say: "It is not by
physical controls that we intend
to solve

area

dollar

50%

transactions

preference for nondollar

Com¬

be¬

hesitation in

ac¬

exchange

part of their imports is bought

re¬

in

some

monwealth countries.

ling

facto

by

of the

the

out discrimination.

to

United

It is essentially the

excessive

of

or

area

in

better than blocked

lar value

American

in

including
can

exports of these
countries of Western and
Northern

increased

for

1%

prevent them; and there is official
support to keep transferable ster¬
ling from departing too far from

differ¬
ences among currencies classified
as
inconvertible; some are little

and the first half of

rate

of

time to time in in¬

from

recur

arrangements.

similar

discount

a

official
sterling.
Even
security
sterling,
representing
capital
They are part transfers of
nonresidents of the
of a dynamic world in which na¬
sterling area, can be sold at about
tional policies are adapted much
the same rate as transferable ster¬
too slowly to the changing circum¬
ling.
stances with which they must deal.
Progress toward reducing dol¬
The nature and the magnitude
lar import discrimination in the
of the payments difficulties now
United Kingdom and the sterling
being experienced by the United
area has not kept pace with the
Kingdom and the sterling area are de
facto convertibility of sterling
indicative of the great change in
in the exchange market.
Never¬
the world payments situation. In
theless, considerable progress has
the past 15 months there has been
been made.
In the United King¬
a
decline of
to

tem of freer payments."

and

at

dividual countries.

the.

in;.; production

un¬

change regulations of the United
Kingdom, no effort is made to

pres¬

economy has recovered from the
effects of the war is indicated
by

growth

were

nominally in accord with the

must be expected

pressures

dollars

While

plans for investment and exces¬
sive expectations for consumption.
Such

transactions

sueh

Ac¬

markets in Zurich and New York.

arising from overambitious

sures

difficulties, nor shall
we go back on our
policy of wid¬
ening trade and moving to a sys¬

trade. -'-In the large
trading coun¬
tries of Western and Northern Eu-

for

suppressed pay¬

or

markets

though the leading

as

rencies

convertibility

ling

be

1949, transferable sterling sold for
a
discount of about 20%. Today,
transferable sterling can be sold

largely the manifesta¬

are

having

to

exchange

could

legally

; Just before the devaluations of

postwar transitional problems-;

with

exchange

the

in

tilateral system of

world payments environ¬

a

favorable

tries not in the dollar area,

certain respectability.

has

and

Convertibility

The United Kingdom and the ster¬

tually,

the effects of the

With
ment

currencies

market, the real cost of maintain¬

the world steadily toward a

of

coun¬

arranged in some markets of

war, many countries are still con¬
fronted with payments difficulties.
These
payments difficulties are

not

On the other hand, until

visions of the sterling area.

the

economy

of

sold for dollars
under the exchange control pro¬

needs.

from

S.

U.
%%

convertibility.

by residents of

not

ing countries, notably the United
Kingdom, are still far too small
for their present and prospective
Although the world

for

within

recently transferable sterling, rep¬
resenting receipts from current

of some important trad¬

recovered

the offi¬

on

market

rate

a

transactions

the

Nevertheless,

reserves.

reserves

at

parity.

nearly

added

be sold

exchange

dollars

$10 billion to their gold and dol¬

that

?.nd

cial

1950,

outside

have

States

own

through hard-work

Since

countries

free

contribution

the

reconstruction

;

limited scale.

more

these countries made to their

derestimate

could always

Soviet

United

order

to leave more output for
investment and for exports. Even

the

of

United

the

side

to

Problems

re¬

ceipts from current transactions
by a resident of dollar countries,

the countries out¬
States (exclusive

food, raw materials
equipment; it would have en¬
couraged a bidding up of prices
and wages that would have added
a gigantic postwar inflation to the
already considerable wartime in¬
flation. The long-run interests of
American producers could not be

the hopes of European consumers.

-

In 1953,

world.

cur¬

a

account

and

Thursday, January 5,1956

.y.

rencies except those of the dollar

and

15

page

The Commercial and Financial Chronicle

Drachman Admits
Drachman

Avenue,

&

Co.,

New

570

Seventh

York

City,will

admit Frank Stave fo

partnership

on^an^l3^r^^r:.^':,^J Gilligan, Will Admit srfT
Gilligan, Will;& Company, 123'

v.
r'

Concluding Observations

The

ments

worldwide
conditions

trade

and

necessary

Greenwich
pay¬

members

Street, New York Cityj.

of

the

American

for

convertibility are being achieved* ^Exchange* on
The near equivalence of the lead¬ James F. Will

Jam-r 1...
to

Stock

admitted<

partnership.

SEG

Financial Chronicle

Number 5496... The Commercial and

Volume 183

(85)

?

E, V. Hegyi Pres. of

Reports Expansion and Activities
En the Securities Market During 1855

Our

Reporter

Governments

on

Reiter-Foster Oi!
Alfons

out

high levels

new

were

issues and the aggregate

Reports also

exchanges.

brokers and dealers

now

By JOHN T. CHIPPENDALE, JR.

year-end statement, points

Chairman J. Sinclair Armstrong, in

reached in 1955 in the number of
market value of securities traded on

The

of

in

Exchange
issued

and

Securities

the

Commission

release

a

stated

2 for the Commission,

Jan.

the

that

tinued

con¬

growth

the

of

econ¬

during
brought

omy

1955

with

it

corre¬

sponding ex¬

The

come,

the

number

of is¬

the

and

of

ue

J. Sinclair Armstrong

the

corpo¬

aggregate

securities

mar¬

traded

exchanges and the number of

on

securities brokers and

registered

dealers, all reached
new
high
levels during the year.
This vol¬
of

activity

the

re¬

quirements of the Securities Ex¬
Act of 1934, that prices

In

1955,

1955/ 938/registration

During

states

the

since

a

of

number

Act

Securities

about $12

of

the

sents

filed

were

the

under

covering offerings

billion.
This repre¬
volume of fi¬

greatest

The

flects

firms

new

in

business

the

of

the

at

re¬

their

their

oi

denial

for the

with

736

20%

with

respect

ings of approximately $10 billion
in
"

in

"We

of

staff

Commission

the

reviews

each registra¬
tion statement in the light of the
carefully

of

standards

disclosure

Act.

the

When it appears that no bona

fide
effort has been made to comply
with these standards, the Com¬
will

mission

not

formal action

hesitate

to suspend

the securities.

Ten

1953.

high

and

confidence

when

time

a

issues

many

come

is

to

market, the Commission's respon¬
sibility is great to require that the
material facts pertaining to new
securities
the

issues

public.

mission

disclosed

are

not

vote

also have

a

furnished

responsibility to care¬

before

them

to

decid¬

Protection of invest¬
by disclosure is only as effec¬

ing to buy.
ors

tive

as

the

use

31.

made of the facts

served

he

where

was

as

Account

an

Executive for the past two years.

Trust

ment

Analyst and

ager.
Now

with the
for

Company

number of years as

a

Senior Invest¬
Account Man¬

aggregate volume of trad¬
ing in stocks and bonds on na¬
tional
securities
exchanges
in¬
creased

billion

in

approximately

to

1955

$10
compared with

as

At the end of

$29 billion in 1954.
market

the

1955,

November,

value

of

mitted to dealings on

exchanges
at

a

of

record

the
total

aggregate

securities

ad¬

the 19 stock
stood

country

year,

Tilden

of

about

$340

est firms on LaSalle Street

well

as

institutions

as

and

pen¬

sion-profit sharing funds.

Form Robert Patterson
Co. In Tucson, Arizona
TUCSON, Ariz.—Robert Patter¬
son

& Company has been
offices

with

Street,

at

23

to engage

business.

Officers

terson, President;

formed

East Alameda

in
are

a

securities

Robert Pat¬

Jack Dykeman,

Vice-President; Peter M. Kusian,
Treasurer;

and Stephen P. Moor-

opment Securities

toric

and

As

sion

year

1929

in

peak.

past

years,

maintained

a

the Commis¬
careful




watch

near-term
under

be

sector

out

carry

of the government market will

until there is a major change in

pressure

.

Joseph

the

As

demands

yet there

for

than by the policies of the monetary

are

long-term

no

important signs of

nership in John H. Kaplan & Co.,
Dec. 30.

.

Smith

W.

David

funds

with

and,

this

partnership in La Morte,

limited

Maloney & Co., Dec. 31.

Sulzberger, limited
Hamershlag, Borg &
Co., became a general partner ef¬
David Hays

partner

in

fective Jan.

1.

A. S. Anderson Heads

street as long as these conditions prevail. As a matter of
opinion, certain money market specialists believe that even if
there should be some relaxation in the policies of the powers that
in sight yet), the long-term capital market
greatly relieved, because of the huge demand
for mortgages, private placements and the like.
are

none

for funds

eum

analyst

Jackson

president

&

Association
senior petrol¬

of Paine, Webber,
Curtis, was elected

the

of

Oil

Analysts

at their regular monthlymeeting. The Oil Analysts Group
is made up of 50 petroleum in¬

specialists employed pri¬

marily in the financial community
and 10 associate members repre¬
senting major oil companies.

the

way

not

U. S. TREASURY/

STATE, MUNICIPAL

too

be

with

New

Krensky Branch
In Washington, D. C.

and

partner in
Greene

man

& Co.

was

Co. and was a

Ball, Burge & Kraus
& Ladd. Mr. Dyke-

with

Henry

Dahlberg

the

Washington

brokerage

firm of Franklin, Meyer

PUBLIC REVENUE

and Bar-

nett.

Beside

Barnett,

and
for-

Meyer
Friedlander

Franklin,

Philip

SECURITIES

C.—Arthur
:irterly has been associated with
M. Krensky and Company, Inc.,
'Redmond and Company; J. and W.
Chicago stock brokerage firm, has
Seligman and Company; Bache
announced the opening of a Wash¬
and Company: Laidlaw and Com¬
ington, D. C. office, located in the
pany,
and
Smith,
Barney
and
Bowen Building, 821 15th Street,
WASHINGTON,

N.

D.

Company.

$

W.

Arthur

M. Krensky,

Jr., Presi¬

said the branch's resident
manager will be Philip Friedlander, a member of the Washington
dent,

Board of Trade and an active
ure

in

the

brokerage

fig¬

business in

Washington for the past 35 years.
Other

registered

in the Washington
clude Kenneth

The

Arthur M. Krensky & Company,

New

son

office will be

office for Kren¬

Wayne, Indiana; Grand Rapids,
Mich., and Princeton, Illinois.

which

a

branch

sky and Company. Others are lo¬
cated
in
El
Paso,
Texas;
Fort

representatives

Ralph Whitmore,

Washington

the fifth

branch will in¬

Friedlander,

of the manager;

.

from

out¬

demand

longer-term government obligations are not going to have a one¬

(and

retired

let-up in

a

stripping savings by a considerable margin, it is evident that

be

Jerome

M. Schoenwald retired from part¬

vestment

long-term sector of the government market is influ¬
much more by the large demand for mortgage money and

authorities.

and

Lasser

R.

Group

V

The
enced

-

-

Long Credit Exceeds Available Supply

for

Demand

service to individuals and trustees

the Dow-Jones Index
of stock prices on the New York
Stock Exchange passed the his¬
ing the

,

exclu¬

in
investment
security management. The firm
specializes in the field of advisory
engaged

sively

head,
Secretary.
Mr. Patterson
was formerly with Atomic Devel¬

an

the

to

order

/-

Bros. & Grannis is one of the old¬

increase of nearly $40
billion over Dec. 31, 1954.
Dur¬
billion,

to

monetary policy.

would

in their 24th

disclosed.
The

that

in

funds for other capital needs

formerly with
Brown Brothers Harriman & Co.,
Loucks

Mr.

\

.

holdings of Treasury bills should not be sizable enough

certificates

in

-

Robert Patterson withdrew from
limited partnership in Ball, Burge
& Kraus Dec. 31.
/ ~
*

Oil Analysts

General Partner of Tilden Bros. &

"

following firm
•

Alan S. Anderson,

CHICAGO, 111. — Ralph B.
Jr., was admitted as a

effective Dec.

'

,

,t

has announced the

changes:

the policy of credit
restraint which has been and still is in effect.
This most likely
tions

Loucks,

Grannis,134 South La Salle Street,

-

J.

The New York Stock Exchange

easing factors in the money markets, it is believed
that the Central Banks will not hesitate to cut down their posi-

means

R. B. Loucks Partner

'/

the

offset

continue

Northern

fully consider the information in
the
prospectus which must be

in the money markets.

'If the

-

Counsel Firm Admits

He had previously served

advisors

ease

to

de¬

to

energies to that end."

secu¬

their

and

our

intend

approve

place the legal
responsibility for full and fair
disclosure on the persons selling
the securities to the public.

Fed¬

protection of

the

we

Com¬

rities and the laws

Investors

and

investors

the

However,

does

to

and for

interest

such proceed¬

ings were commenced in 1955 as
with none in 1954 or

the

be

securities laws in the public

eral

the reg¬

compared

1956 will
by the

enforce

to

will

William

,

these seasonal factors
provide more reserves and funds for loans and in¬
be allowed tb affect the policy of restraint which is

operating in the money markets. This probably means
that holdings of Treasury bills will be reduced by the Federal Re¬
serve
Banks i'n order to Counteract the forces that bring about

efforts

further

Commission

take

to

that

anticipate

for

call

istration and thus stop the sale of

At

stated:

strong

General

of

":

As long as the Federal Re¬
serve
System is engaged in the program to slow down credit
expansion, with the inflationary implications, it seems as though
the Central Banks will not miss the opportunity to mop up the
new reserves which will be created by the seasonal forces which

Chairman Arm¬

concluding,

Y., Mr.

Weekly Firm Changes

of the return flow of currency from circula-

being pursued by the powers that be.

1954.

over

In

1954.
The

increased

1955

American

the

New York Stock Exchange

,

generally favor easier money conditions

However, it does not seem as though

vestment will

of

Management.

O.S.S. in World War II, under the

position to reflect the ease which results from these early year
developments. '
■
."7
7 77' '
which would

of

Donovan.

Likewise, the demand for loans tends to decrease and,
with the repayment of borrowings, the money markets are; in a

revoca¬

or

of

direction

markets.

the year.

registrations
by more than

Corporation, Mr.
Assistant to the Presi¬
U. S. Freight Co., and

was

native of Buffalo, N.

A

wards

-

principal

Hegyi served as a Captain in the

tion, which might provide member banks of the system with up¬
of $1 billion of additional reserves in the early weeks of

customers/savings.

tion of broker-dealer

dent

.

ceedings commenced by the Com¬
mission

Hegyi

Institute

in January because

its

Prior to his election to head up

Vice-President

influences

of

In¬

Reiter-Foster Oil

Federal Reserve to Counteract Money Ease :

The number of pro¬

dealers.

of Jan.

office in the Republic of Cuba.

tive credit policy

regulations, applicable to brokers
and

du¬

new

as

vestments,
Inc., a corpo¬
has

which

ration

past, with the ending of the seasonal needs for money.

Seasonal

-

Hegyi

of the monetary

and abide

the enforcement of laws and

upon

the

the future course of the money

same

understand

newcomers

fc.mil V.

hand, there is nothing yet apparent in the action
authorities to indicate any change in the restric¬
which has been in effect. Also, time will have to
elapse before the economic trend, which has been very strong,
will give indications as to whether or not it is going to follow the
same course, or move in a different direction.
What happens to
the business pattern in 1956 will have a marked influence upon

time,
poses
for the Commission the
problem of making sure that the
but,

choice,

moved into the New Year with the,bill
was established
passing of 1955. It is reported that funds are a bit more

On the other

Americans

of

freedom

the

enter

to

of

number

The

Hegyi,

Director

a

obligations. This is not an unusual development because a tem¬
porary Jet-down in demand for loanable funds has been witnessed

for various reasons.

year

Evident

plentiful at the moment for investment in near-term government

of

number

board

assumed

his

issues.

declining considerably from the high which

with the

registration terminated during the

nancing in the 20-year history of
the
Commission, and compares

registration statements
to aggregate offer¬

Mr.
who

The money markets
rate

firms,

new

considerable

con¬
serve

1, 1956, is also

This increase of 237 under¬

1955.

the

on

issues

.

statements

tinue to

Omnia

performance of its varied duties ;
The Commission is placing in¬
in the public interest and for the
creasing stress upon its program
of broker-dealer inspections and
protection of investors.
■

government

Traditional Money Ease

1954 to 4,443 at Dec. 22,

31,

corpora¬

tion, will

ties

registered brokers and
increased from 4,206 at

dealers
Dec.

former

must have long-term set rate

firms en¬

new

many

ment

heavy responsibility in the

a

the

of directors.

judgment of investors,
free from manipulation and other
unfair and deceptive practices.

sion

upon

Kirk,

President of

continue to make a
showing because of the demand which is coming into
the market for these bonds, mainly from public pension funds.
There is also buying of these securities by private institutions that
longer-term

reflect the

by the responsibilities inherent in
a
business involving the invest¬

places

John H. Van

the nation's securities markets

on

Securities and Exchange Commis¬

ume

The

Oil

Corporation.

favorable

change

securi¬

rate

of

the

to Enforce

seeks

mission

number of

aggregate val¬

value

prices.

of detecting and pre¬
manipulation of market
By many means the Com¬

tered the securities business.

sues

offered,

venting

Reiter-Foster

of

\yill be taken by the monetary authorities to offset them.

the purpose

securities
national in¬

ket

trading for

exchange

pansion
and
activity in the
markets.

ties

stock

Director

a

stringency of the

to bring down the rate on these obligations.
The credit easing
factors, such as the return flow of currency from circulation and
the repayment of loans, are not expected to have very much of an
influence on the money markets because of the action which

1

of its duties.
over

money

year-end appears to have passed. More nearrterm funds seem
to be finding their way into Treasury bills and this has tended

increase in registered securities
doing business. Says all these devel¬
an

Chairman J. Sinclair Armstrong

though the

Landa, Chairman of the

Board, announces the election of
Emil V. Hegyi as President and

government market is following much the same pattern

which has been in effect, even

place heavy responsibility on the SEC in performance

opments

29

has

American
west

memberships
Stock

York

Stock

Stock

Abraham

Sperling, and Miss Betty

Chicago

Wilkins.

They were all formerly

formed in

Exchange,

Exchange,

Board

on

the

Exchange,

of

and

Trade,

March, 1954.

Mid¬
the
was

Aubrey G. Lanston
& Co.
INCORPORATED

15 BROAD

ST., NEW YORK 5

Whitehall 3-1200
231 So. La Salle St.

45 Milk St.

CHICAGO 4

BOSTON 9

ST 2-0490

HA 6-646J

30

The Commercial and Financial Chronicle

(86)

automobile curve is not clear evidence of a new growth
potential in the automobile market, but a fortuitously ac¬
celerated tempo that entails the potentiality of
subsequent
deceleration." Then, after reciting recent events in the
steel industry, he says that "all this
reflects some
very strong factors of change that have come into our
industrial pattern of life in recent years. And I am defi¬
nitely suggesting that to me these changes seem to have
injected some elements of strain and indeed of vulner¬
ability into the structure of the economy as we cross the

Continued from first page

It

As We See

•"

economic health. Some of these deviations from what we
used

to

think

.

plain, ordinary commonsense in the

was

management of our affairs were again and again and again
referred to at these sessions of the intelligentsia of the
country as "built-in economic stabilizers" or in some other
appeared to be almost if not

such terms. Interest in them

quite wholly confined to what effect they would have on
business conditions during this year of our Lord, 1956.
What is to be expected in the first half and the second
half of this 12-month period seemed to be the most popu¬

threshold into 1956."

And certain of his closing sentences, which we cannot

,

refrain from
of

'built-in

labelled

lar

guessing game of the discussions—in very much the
way that the outcome, say, of a world series is ordinarily
a subject of guesses and bets. Almost no one much con¬
cerned himself with what these new fangled ideas and
programs are likely to do for us or to us 5, 10, 15 or 20
years hence. Very similar observation^ could be made of
almost any gathering of leading economists and observers
in this day and time, and in our judgment it adds up to
a very serious situation.

quoting: "We should not count
stabilizers'

built-in

are

because

of

some

unstabilizers.

Nor

the magic

on

the

things

should

we

so

sup¬

that the controlling or compensating action of
monetary and fiscal policy will fully protect businessmen,
labor, and consumers from their lack of prudence in the

pose

flush of

prosperity or their lack of fortitude or daring in
pinch of recession.
Private adjustments must

the
be

.

main

our

.

.

[Ed. Note: ^ The full text of Dr.
appeared in the "Chronicle" of Dec. 29.]

others

from

time

meetings, as
time, who undertook to search

to

crystal balls for events a decade or more hence, but
their "projections," as they like to call their soothsaying,
were for the most part
hardly more than lines drawn into
the future on the basis of the assumption that what has
been taking place in certain statistical series during very
recent years

would continue in the same direction in the
One searches such forecasts in vain for any
careful judgment of the long-term effects of current pro¬
grams. In fact, they all too often seem to some of us to be
hardly more or less than 1955 editions of the reckless
utterances
by so many in the months of 1928 and
early 1929.
,;
>
to

years

>

come.

In what degree these
shortcomings of these various
public meetings are to be attributed to the program mak¬
ers, and in what to the speakers or even to the public

whose interest

the

at

moment

certainly has to be con¬
sidered, we do not undertake tp say, .Certainly ,a speaker
asked to say what he thinks the oil stocks are
going to do
during 1956, or the economist requested to state his views
about the general business situation in the
early future,
or the statistician who is on the
program to tell the public
how many automobiles are
likely to roll off the assembly
lines this year, could, for
example, hardly be expected to
give too much of his limited time to more basic considera¬

of

concern

that such

a

to us that it is

seems

massive list of

leading intellectuals in the fields
scarcely have

even

these

changes in

radical

policy.
eral

a

so

in

of social science should

of behavior

and

think it well worth careful considera¬

we

Nourse,

a member of what we might
economists, asked to take part
general study of the business outlook for 1956, did

the older school of

a

of the

manner

to leave little doubt that he is

skeptical

universally benign effect of at least some of the
frequently are in this day and time

wind died down and its sails went

slack,

Big claims had been made

for it

solvent of

as a

economic

our

ills, and when it couldn't support
these claims there was a tendency
to

discard

in

it

favor

of

more

direct and what might seem to be
more

powerful economic controls.

"

,

v

thought of the 1956 outlook, and
thought of much that has

did not go
fully into what he
been taking place in this
so

country, but

shines
these

some

of his thinking

plainly through what he did have
sentences

from

to

his

Take
address:

say.

carefully prepared
"Price supports
were politically extended into the
inflationary boom period. There they operated to hoard
.

excess

age

labor

on

.

.

the farms rather than

easing labor short¬

in industry, and to drain capital and scarce materials
production of farm commodities in excess of mar¬

into the

ket

capacity to absorb them.
There is
adjustment between the agricultural and the
.

of

the

economy,
stabilizers."

with

He then has the

in

the

automobile

.

.

a

basic

mal¬

other sectors

powerfully backed built-in

un-

courage to say that the developments

during 1955 "suggest the
sobering reflection that this sharp upward bulge in the




Open

adoption by

of

Governors

Conference

(Presidents now)

of Federal Re¬

serve

Banks, in 1922, of a policy
of buying and
selling Government
obligations in an orderly and sys¬
tematic manner, and the
appoint¬
ment of a committee of five Gov¬
to

ernors

that

this

was

This loose arrangement

was

see

ened up somewhat

Reserve
rule

Board

done.-

tight¬

by the Federal

in

1923, and the
adopted, which has since

was

become

a

statutory

principle of
operations, that the
time, character and volume of
such operations must be governed
open

market

with

primary regard to the

commodation

of

credit

ac¬

and

commerce

situation.

open market

the

on

In

1930

policy conference

created which included

a

rep¬

particular method of conduct¬

open market operations was
legislated in 1933, when the bank¬
ing act of that year created a Fed¬
eral

Open Market Committee and

prohibited

market

open

opera¬

Market Committee,

the

the

Board

side

Governors

of

and

Presidents

Reserve Banks

it began to

1913,

such

lot of

men.

that

appear

prob¬
Then

more

im¬

portant

work could be done, or
hay could be made, in other
branches of economics, while in¬

a

banking suffered

relative decline.

been
in

something of

the

the

of

one

renaissance
of monetary
policy as

use

greater
out

Now there has
a

of
achieving
stability, with¬

means

economic

sacrificing too much economic

freedom.

If

we

careful not to

are

claim too much for

its

place.

And

I

it, it may hold
hoping that

am

a

banking

new

Let

problems

generation
me

of

economists.

first

speak

about

will

and

the

most

Federal

System, its organization,
policies, and its techniques.

You all know the general organ¬
ization of the System, but
you

not all be

may

of the

aware

organization.

lines

they

of

the

The main out¬

System

are

when the

were

established

41

much

System

years

ago;

as

was

a

re¬

gional system, Federal in charac¬

ter with
and

ton

national coordinating
supervisory body at Washing¬

and

serve

ing

a

12

regional

Banks which

arms

of

the

Federal

are

Re¬

the operat¬

System

in

Within

this

there

framework,

has

been

a

the most important func¬

of

It

is

true

the System

be

rates

Boards

of

seems

Dis¬

manner.

fixed

are

Directors

the

by
the

of

indi¬

vidual Federal Reserve Banks, but
are
reviewed and determined by
the

Board

setting of

of

Governors, and the
and margin re¬

reserve

quirements is wholly
the

of

Board

of these
must

be

a

charge of

Governors.

measures

But

all

of credit control

integrated and used
kit of tools.

common

as

a

The Federal

Open Market Committee provides
the

forum

where

their

coordinated

place

without

fringing

the

to

necessary

a

acquiring
coor¬

a

and given evidence of being able
to adopt itself to 'environmental

change.

discussion
use

can

of

'take

unnecessarily

in¬
the rights and du¬

upon

Possible Flaw
There
see

in

those, however, who

are

the

regional

persistence

of

representation

Federal Open Market
a
serious flaw in our
trol

machinery.

believe

that

present

Committee,
credit

They

con¬

appear

remain

the

on

Presidents
Banks

of

who

Committee

Federal

war¬

five

Reserve

members

are

to
the

Com¬

along with the game
in the person of the

dens,

the

on

this has enabled

poachers to
mittee

the

of

along with the

seven

members of

the Board of Gover¬
The Presidents of the Fed¬

nors.

eral Reserve Banks, they
say, are
selected by the directors of the

Banks—to

be

with

sure,

the

ap¬

proval of the Board of Governors.
The nine men who serve as di¬

tion

rectors of Federal Reserve Banks
include six men elected by the

charts

lines of
in

and

precisely

drawn

authority, becomes logical

terms

of

the

evolution

of

a

body which apprppriately and ef¬
fectively represents all parts of
the System.

member

banks

ers.

It may

this

Informal

Attempts

be useful to recall how

unique

of

arm

developed, not from
inspirational attack

eral Reserve Banks

shakedown

cruise

duration.

adjustments

Presidents very long.

about

20

their

individual

Banks

earnings.

apparent that

purchases

made

and

to

It

supplement
became

soon

the effect

sales

an

Federal

of

of

these

Govern¬

or

the repre¬
banks

posed

to

trolled

be

has

they

won't

be

And so, it is
group which is sup¬

claimed, the

regulated

at

least

one

and

con¬

hand

on

the

controls, or at least five fin¬
gers in the pie.
This line of chain

reasoning has

its appeal if you believe that
the
Presidents
of
Federal
Reserve

and

by

were

bank¬

and, in political terms, must be
responsive to the wishes of their
constituents

in the form of

emerged

are

sudden

of

district,

are

member

System

In the beginning,
the reserve posi¬

of

the

the

of

years

of

some

on the prob¬
bringing national unity to
a regional central
banking system,
but by trial and error
during a

lem

their
men

Ergo, the Presidents of Fed¬

sentatives
First

of

and three of these

Banks

a

within

while

of
of

present day conditions. This or¬
ganism has survived for 20 years

tions

as

organization

system,

powers

some

characteristics

dination of national policy under

entirely through the discount win¬
dow.
Early open market opera¬

eco¬

higher form of

a

ties of other parts of the System.
The illogical in terms of organiza¬

Reserve

nomic

regional
Federal

how¬

definite

political, and
organization, as well

of

means

in what

illogical

an

count

the center, a
corollary of developments in other
of social,

the

desirable

has

of natural

organism, which retains

tions of member banks

gravitate toward

areas

that

open

Evolution

a process

selection toward

control, other than open
market operations, are scattered

attempt,

to

System, namely,

good.

so

credit

and influence

power

Federal

other, but

far

So

their

respective districts.
ever,

one

evo¬

lutionary
changes
which
have
been taking place within the
gen¬
eral

of

the

on

on

by individuals having equal statu¬
tory authority and equal statutory
responsibilities
with
respect
to

to

a

operations in accord¬
with the directions and
regu¬

ance

lations of the Committee.

proceeded by

Reserve

Act in

open market

and its
as a body in which the
parts of the System are
represented not by blocs, not by
opposing groups of members of

about

lems attracted

Federal

evolution

the younger economists, in
problems of central banking.
time, preceding and follow¬
ing the passage of the Federal
a

tendency for

industry

ac¬

various

larly

its

Dr. Nourse did not overlook the fact that he had been
asked to say what he

development of the

market operations.

particularly

Thinking Plain

of

means

That this is so, is largely due to

the

tions of the

economists, and particu¬

Reserve

His

the

pattern could be traced in the in¬

similarly recapture the interest of

blessings destined to drop like gentle rain from heaven

growing- familiarity at

terest of

viewed

for all the years to come.

of

center with

one

central

"built-in stabilizers" and therefore heaven-sent

result
the

I suspect that somewhat the same

nostrums that all too
as

The

correct

ing

,

and

terest in central

partial exception to this gen¬

Central Banker

few of the things

a

more

patterns

our

at least

one

tion. Dr. Edwin G.

in

speakers among the

;;k-:9C

was

rule, and

term

matter

referred to the basic soundness of all

;

There

a

a

a number of years
prior
during World War II. It
had been running fast before a
brisk breeze
for quite
a -while
prior to that time, and then the

to

the

time it

to

the

Statutory
recognition of and restraint upon

drums for

For

same

attempt

was

complishing things at the pe¬ tions of
Federal Reserve Banks
I have observed and thought about,
riphery. Fortunately, I think, for
except in accordance with the reg¬
while i have been an officer of the development of the
System ulations of the Federal
Reserve
the Federal Reserve System, and and the good of the
country, this Board, The Federal
Open Market
which I think might,merit a larger tendency has not gone so far as
Committee
in
its
present form
measure of interest and attention
to
destroy
either
the
Federal came into
being with the passage
from you.
character of the System in terms
of the Banking Act of
1935, which
of policy formation, or its regional
also made it mandatory for Fed¬
Monetary Policy in Doldrums
character in terms of policy exe¬
eral Reserve Banks to
engage in
Monetary policy was in the dol¬ cution.
'
1
i

a

look. At the

the

them

might

policy at the time.

informal

general

page

my intention. I think it would be
pretty dull. What I would like to

tions which he may

well think at some later date will have
controlling effect upon the business situation or out¬

first

the situation

this

do is to discuss

bankers

resentative of each of the 12 Fed¬
eral
Reserve Banks..

Reflections of

their

(and

reserves into the

or to take
out without regard for what

was

from first

securities

be credit

an

To be sure, there were a few at these
at

ment

bills) was to put
banking system

business and to their effect

reliance."

Nourse's paper

Continued

Crystal Balls, Again

.

.

Thursday, January 5, 1956

...

mercial
so

their
that
the
the

are

so

beholden

bankers

lacking

for

in

to

com¬

their

jobs,

awareness

of

statutory
responsibilities,
they cannot honestly serve

public interest
Federal

mittee.

Open

The fact is,

as

members of

Market

Com¬

however, that

Volume 183

the
r

Number 5496

relation

of
the

between

Federal

a

bankers

that

of

and

his

ployee

his

or

an

the

yond

not

representative

constituents

and

is

question

a

and

Bank

district

his

elected

an

President

a

Reserve

of

The Commercial and Financial Chronicle

...

be¬

well

goes

mechanics of

ognize,
longer

deserves

to

citizens,

The

men

closest scrutiny

your

well

as

as

for

eral

of Fed¬

of directors

Reserve

So much for organization.

Act says

emergency

Banks

these di¬

by
instead

have

double

a

First, they inject into the
System's conduct of its everyday

the

practical judgment that well-

and

chosen

business

provide

from
and

ence—

executives

their

includes

that

,

can

every¬

thing from judging the fitness of
a man 'to administer the complex
operations

of
the

Bank

to

plant

and

Federal

a

contributed

formance

Reserve

maintenance

equipment.
to

its

of

has

This

operating per¬

an

which

has

protected

Federal Reserve Banks from much
the

of

criticism which

against

other

is

levelled

institutions

not

Second, these elecr
the Pres¬

toral arrangements keep

idents

of

Federal

directly in

Banks

Reserve

touch

with

provision

of

aware

in their districts, and who
help to interpret credit policy
to the banking, business, and ag¬
ricultural
community,
without
making the Presidents subservient
to whatever may be the selfish in¬
ments

can

elastic

an

States,

for i other

and

purposes.

must be the case when

fold

obiects

reriment.

few

chosen.
in

of

are

words,

economic

an

matter

are. all

important
formation, the

more

now

fixing

rates

service

and

under

conditions

monopoly

or

the

problem of

tribunal
■

watching

of the

ance

lem

of

tem

is

nor to
administrative

an

law.

the

observ-

over

The main

probbanking sys¬

central

the

appraisal of major
developments affecting the whole

the formulation of

economy and

policy

which

influence

stability

of

whole.

This

which

is

try as we'l

not

in

the

has

economy

specifical¬

specifically

Employment

We

mentioned
of

Act

1946,

which gave expression to the pres¬
ent

general

concept of the
Government,

role

eco¬

of

but

share of the general responsi¬

bility

derives

contact

with

eco¬

and with people

with the represent¬

as

cal center.
ers

with

lems

of

neither

It requires

an

an

practition¬
of the prob¬

awareness

which

economy

wholly private

is
wholly

nor

public in character.
It reouires
practitioners who are insulated
against
against

the

on

one

selfish private in¬

narrow

fluence

political
hand, and

partisan

narrow

influence

the other, but who are

on

responsive both to broad Govern¬
ment

policies and to

the

tance of private initiative

impor¬

and pri¬

vate

enterprise in giving support
to those policies. In my view there

bas been developed
Reserve

in

System

in the Federal
general, and

in the Federal Open Market Com-

mittee in

tribution

particular,
to

the

unique

con¬

democratic

ad¬

ministration of such
is

no

conflict

of

a

There

task.

a

this

in

interest

requirements cf

own

charter,

emphasize the
requirements
of
this

implicit

organization
cause

I

at

think

preservation of
System

vigor

in

a

which
a

length

some

it

vital

is

to

effective possibte utilization

most

of

to

which

attempts

as

bill has been

In

fact,

a

Con¬

resting in

gressional committee for the past
year,
which would abolish the
Federal

and

Ooen

transfer

Market
its

Committee

functions

to

pre¬

come

a high employ¬
production, high in¬

high

ment,

an

not

is

an

had

to

pretty much all of one
mind, I take it, when it comes to
opposing deflationary forces which
are

threaten

waste

a

material

and

human

of

But there is

resources.

trotted

tion—is
Here is

in

out'

as

prospect

in

or

to which

more

the

rieht

in

help from
far given us.

so

ing high level economy

patible?

Or, at least,
belief,/that

that

belief

stability of the-dollar and

our

being.

should,

we

Are

in

infla¬

mild

perhaps, have had
you than you have
we

steps

must take from time to

we

timo.

In

which

have

developed

countries

experienced

hyperinflation the central bank has only
mention

to

bring

the

inflation

word

to

large

a

support to

measure of public
restrictive credit pol-

a

icy.

When

we

mention

as

reason

for

trying to restrain

a

inflation

and

goods

and

services,

when

cumstances

cir-

in

further

credit

injeclikely to

are

largely if not entirely in

increased prices, we are apt to be

charged
there

with

crying

wolf

when

wolf, to be denounced
apostles of deflation.
And if

as

no

is

actual

inflation

perhaps

does not

because

develop,

have

we

done

job of helping to curb its development, the accusation against
us seems to gain increased validity. You can see why I would like

our

grow¬

a

are

com¬

are we

there

right

are

so

combine

a

growing,

stable

Open-Market

central

banks

I

to make it likely that

role

our

will

generally be to resist those
pressures in the interest of sus¬

am

_

unfore¬

0f the

en-

/central

Observations

going to turn to

now

and

however, when central bankers
consciously
to
interfere

began
with

the

dollar

tic

credit

it,

upon

and

a

one

o

techniques"of
bank

execution of

Another aspect of policy formaconcerns me is whether
not undue reliance

ing placed
men, ana

automatic

some

is

mechanical

or

guides to policy action.
that

think

be-

now

the judgments of
wnether we snouldteeek
upon

have

we

I do not

been

led

too

far

astray by reading our press
clippings. When it is said of the
Federal Open Market Committee
that "these

12

have

men

fi-

more

"/// P"wZr
tory,

we

nress

trunk

rnav

it

will

policy, partly beimportance from a

children and grandchil-

our

_

economic

standpoint

it has been the subject of
public comment and discussion during the past year or two.
i refer to the range of open marcause

some

ket

operations; whether such

op-

erations

should
short

further

securities, except under the most

limbo

into

became

oriented

more

the

maintenance of high levels of

pro-

dimtion and ^nlovment at home,
and tried to fit together the inter-

to

be

rigidly

term

con-

Government

unusual
a

circumstances, or whether
willingness at times to operate

over

the whole

ties

of

of maturi-

range

Government

would provide a

obligations

national

and the domestic situation without subordinating one to

means of
making credit policy effective. I
am
not going to reiterate all of

the other.

my

And

yet there have been and
doubt are serious students of

n0

central banking who believe that
jt cannot function properly without

"norm"

a

of

behavior,

or

a

mathematical equation, which will
tell its human guides what to do
and when to do it.

state

of

In the present

knowledge of the
functioning of the economic world,
and

our

despite the flood of available

statistics

which

never

to

seems

Federal Open Market Committee,
There are as yet no absolutes in
this business, however. Those who
advocate,'and I who oppose, the
present techniques of the Federal
Open Market Committee are
merely climbing the hill on opposite sides, trying to reach the
same summit of knowledge and
effectiveness.
tion
tion

now

can

way

discharging
What

including

actions

the

human

of

politicians.
in

complex
beings

leaders,

labor

nessmen,

reer

cata-

a

of symptoms,
appraisal of a whole situa-

an

ers,

just

synthesis

and

tion,

responsibilities,

our

need is not

we

a

substantial and conof the necessity of
human
judgment in

any

exercising

but

Early

the Federal

trm, I read

—

re-

busi-

consum-

in

ca-

my

Reserve

Sysstatement by Allyn

a

Young which impressed

reliance
>cot

But I do think that the

"norm"

in

log

devise

eauation. which will relieve

we

an

of

any

situations

twice alike. They

ques-

worthy of the attensome of you who
here today, not merely as a
one

are

least

matter of casual comment in panel

discussions,

writings

or

subjects, but

other

on

something which

as

has real economic significance and
deserves serious

study.

And I

am

encouraged in this opinion by the
which

articles

have

appeared

in

the journals during the past year,

if

the

from

a

present technique derives
too rigid application of

supposed

classical

economics

to

problems of money and credit, we

I had supposed that the classical

simple rule or
r„]es w01qd be dangerous,

Economic

is

of at

then, need enlightenment from you.

me

be certain that

we can

upon

better

own views, which are already
in the record and which are distinctly minority views within the

out of spate' 1 do not believe

"In fact,

dren, but we are also humble
to
enough
recognize that the

has

fined

and ^presses me now:

lm-

it

and, through
domestic economy,

policy

more

sistent

tion which

and

the domes-

toward

us

,:

the

national

as

inflows

of

upon

situation

They receded

expanding, high level,
economy.

effects

outflows of gold

or

peace-time

or

had

which looked first and almost

with

a

ar6

never

economists, the men of private
property and free markets, didn't
think that free markets could provide

everything necessary to the

compounded
foreign
and domestic, agricultural and in-

bitraily or capriciously.
In the
lirst place, it is a power exercised

public good, and that if they were
0ur
contemporaries, they might
have thought of the market for

dustrial, monetary and nin-monetary> psychological and physical

money

by a

_and

_

wield

cannot be wielded

which

group

fering

circumscribed

is a

ar-

ot individuals ot ait-

backgrounds

different

0f

proportions.

checks

can

with

and

balances

characteristic

cept
*

of

such

our

Government

of

V

that

assurance

j

•

are

as

in

combined

reached by a

deliberative

area

as

an

intervention

of
or

at

by

that

cross-sec-

'™e™enti<on ate that cross sec
tion of the economy where the
Public need for some overall eco-

Judgment and wisdom—the

nomic guidance toward stability

the heart of

be

appropriate
Governagencies of Government
and

markets,

—intervention

tion.

will

shifting

and credit as something
separate and apart from other

the inauirer to
economic situa-

to

power

an

Hkp

tn

nnwpr

analysis

carry

give

decisions

are

.

never

con-

u

elements

constantly

"'Scientific'

which
•

—

ment

whole
•

are

elements

these various

and talents,
differing approaches to
the policy actions upon which they
must finally agree.
There are
and

take

a

a

unaided,

mmnlpv

complex

Qpt

set

nt

or

could

be

provided

Viiwt

with

mini-

a

into

intrusion

the

process,

mieht acauire the habits of

a

des-

facts

theories.

and

The

Federal

details of-

prod^tion and djsto-

this would

*bad

mean

bank

Centml

central

^

bank

Reserve System needs to operate

action to help the market in de-

in the light of all the information
it can get, and it needs to have
gradual modest in¬ ly. and annually our actions are this information organized and
flation, if it be that and not the
publicly reported for all to ex- analyzed in such a way as to give
music of the spheres, appeals to
amine and to judge
Finally it is the maximum amount of illumimanv
groups, political and eco¬
power exercised within the limits nation. But it also needs the guidnomic. There-fea

tenstics of the maturity structure
cf interest Jftes implied by t
kind of credit policy being pursued—not to try to set decimal

economic

tained

siren

song

growth?

The

enjoy the sound of
in

the

cash

sheet

balance

re¬

more

and
dollars in

register,

the appearance of more

a

fundamental

deed,

and

in the

one

in

pay

of

national

mit

leadership

of

nower

think the

those, of

answer

are

needed.

course,

has already been

exerting a gentle
reins from time to

been reduced to
on

the

indulge

to

to

per-

a

experiment

time, which is really administered

we

rec¬

our

increasing

time, however,
knowledge
of

with

Importance
But to

that

of

Powers

tagk

recognize the limitations

very

we are

is not to deny their

We must and do take
seriously. We realize
trying to measure and

of credit in a
and
we
are
steeped in the belief that whether
the economy works well or poorly
adjust

money

the

flow

economy,

in

discharging

our

re-

policy works,
a

"norm"

we

can

creaSes

vaiues,

wouid be greatly simplified.

To do that, we shall have to know

And

that

supposcd

dis-

of

'/racture

0^u^ly^0t^^Tt^e
in the direction /ought by

how

action, or a
mathematical guide to policy, our

sponsibilities.
And
therein, I
think, lies a danger. The oppressive character cf such a heavy

though

in

cover

failure

able power, even

which
If

points

malket
is b^U/oTfxneSce™
born only of experience.

inclined.

them

the

?f

ance

crecbt

importance.

who

given, and thateour powers have
tug

or

not

rashly with it, even if it were so

of our powers

are

and public

would

Committee

the

sense

objectives

which

tolerance

the admin¬

Inflation and Deflation

There

is

it

exercised in the white light

power

of monetary policy, and
advice and counsel and, in¬
your

place

second

of full disclosure: weekly, month-

istration
your

the

of

tendency to

lax and

In

pot

impotence of our central bank¬
ing system. It still has consider¬




which

that

to

lies a revolution in the or¬
ganization of our credit control
machinery. I believe that this is
way

of the

seen."

formed this role in those countries

^i •qIe^HK+Rnr1Kn0rif0rt irl-lbe
solving doubts about our abibtv

deoends in part on our success or

Governors of
That

is but balance

administration

which transcends its purely technical
trappings, and partly be-

by the horse. ^With that I cannot
cannot bear witness to the

of

"Our stability

And wisdom lies in masterful

general

agree; I

Board

the

be

of payments and the size of their

the Federal Reserve System.

enlarged

ex-

considerations into account and
many forces in the economy which
and
that
power
will
not
be come to a balanced view of them
now exert inflationary
pressures,
wielded
by an individual who --are quite as much needed as
as

central

to

gold reserves in formulating centra.l bank policy. Those "good old
days" began to pass into history,

no

central banking problem

a

with respect

for

continue

lines of the poet:

action,

the risk of

remove

motto

good

actual

any

power we

unanimity when inflation—

usually

may

cause

one

such

a

banks

tirely to the state of their balance

ficial^ body m Un ted States his

economy.

We

envelope. T'^erproblem has become

destroy

time to time.

the

upset

carious balance of

presently constituted, have been

made from
a

to

either

pressures,

can

be

must

inflationary

both

oppose

t:e

the
Federal Ooen Market Committee,
because

We

resources.

our

alert

the

and

setting,

broader

charter, by combining stability of
the purchasing power of the dol¬
lar
with
the
promotion of the

be¬

Federal Reserve
retains
regional

national

our

must

we

money

of this matter of

have

we

.

to be true to the explicit

are

we

administration.
I have spoken

from

largely

deflationary

atives of Government at its roliti-

-

banking

probably cannot be.

and

were

of

in the market places of the coun¬

.

ly,

our

been spelled out

one

public service
of its practition¬

nomic processes,

-

better balance in
never

and

a

requires

continuous

ers

.

central

system in this attempt to achieve

a

economy so as to

That

to

certainly do not have
desire to face, even though

choice economy.

of;«a

along,

to

men

and

show up

the

credit sector of that
contribute to the
the
economy
as
a

and

money

will

primarily

or

causes.

tions of bank

if

regulatory

semi-moropoly conditions,

.

neces¬

faced by a Government

policy

solely

internal adjustments of a
dynamic, growing, relatively free-

problem is not comparable to that

of

;

oc¬

that
expression of national policy.
I
have always felt, however, that

cf

body

,

a

well
engaged

how

sary

role

seek

mechanical de-

ercising fallible human judgment,
The gold standard, as it existed
during the latter part of the 19th

a
boom, which
shows
signs of
wide and deep eco¬
exhausting physical
nomic fluctuations and to mitigate/ temporarily
the
hardship^
the smaller cy¬ capacity to increase the supply of

The

or

guide to policy

a

as

in order to

of

currence

our

even

ex-J

into

compressed

no

We

the mani¬

attempt to prevent the

an

munity.
the

.

Well, the "other purposes" have
long since stolen the show, as

nomic

On

cur-

the

terests of any group in the com¬

level

a severe restriction

experience of such a
affording a means of remight
subsequently
discounting commercial paper, and catastrophe
make for brcader public underestablishing a more effective su-,
standing
of
the
anti-inflationary
pervisicn of banking in the United

who

men

of banking and credit
conditions and economic develop¬

/are

face,

is

prodded toward efficiency by the, clical fluctuations and the

profit motive.

Tne

rency,

experi¬

own

tq policies.

that the Federal Reserve
to be concerned with

System

affairs the standards of efficiency

.

due

monetary

rectors,

,

tion

preamble to the Federal Reserve

Reserve

'virtue.

.*

Now

eral

reference

vice

would only find support if we century and the
early years of
were faced with a
runaway infla-. the present century, largely per-

for

a

automatic

some

as

of

and for the
appointment of Presidents of Fed¬
Banks,

responsibility leads

can no

drastically

so

31

we

't v

appointment

used

bring about

tion

Policies

and

election

the

be

supply with restricincome, production, and
employment in its wake. In this

of finance.

present somewhat complicated ar¬

rangements

must, that

we

of the money

economists and

as

I think

as

general monetary controls

or¬

ganization, and which needs and

em¬

employer.

which

mere

(87)

or

f.naHy j had

the effects

decreases

arising

from

in

of incapital

changes

in

rates 0f interest, were
becoming more and more important in an economy in which pub-

long term

pc

as

weu

as

private debts have

than we yet know about become so large a part of our sohow monetary and credit policy caiied assets, and that some diactually affect the economy, as a rect intervention in this area
whole, and in its various parts, might at times be appropriate,
and with what leads and lags, whether or not these or contrary
This will mean deep probing into suppositions are true, it seems to
the operations of our money and me that this matter of open marbanking system as it is now contechniques involves problems
stituted, and into the effects of 0f ec0nomic significance beyond
changes of monetary and credit its jmmediate technical applicapolicy upon the whole economy tion and that it deserves your
working through the banking sys'
Continued on vaae 32
tern.
Until this job is further
Continued
p y
more

32

The Commercial and Financial Chronicle...

(88)

Continued

from

the

in

31

page

Reflections of

the

Central Banker

a

published find¬

your

ings.
Controls

Selective

There is

another

of credit

area

which

administration

be

can

brought under the loqse heading
of techniques.
That is the prob¬
lem of selective credit controls,
and

the

particularly
that

pose

bias

who have a
detailed
planning
would prefer that

of

all

against

"from

above"

us

credit

policy accomplish its ma¬
jor aims by general quantitative
controls which work impersonally
but prevasively, and without in¬
terfering directly with individual
transactions.

if

But

•

has

there

form of credit ex¬
tension
which, no matter how
prodigious its contribution to mass
production and mass consumption,
is also introducing a dangerous
clement of instability in our econ¬
grown

up

a

and if it is difficult to reach

omy,

this credit

by general credit
without adversely af¬
area

measures

fecting all of the less avid users
credit, is there not a case for

of
a

Thack¬

selective credit control?

eray

in "Vanity Fair":

says

"Everybody must have observed

ing, but I shall not try to go into
Economics and social objec¬
become
inter-mingled
so

economists

and

devoted

their minds."

credit,

just

concerned,

under

different

ditions

and

about

was

market

until

credit

the Board of Governors

given
establish, and to vary,
requirements.
I am dis¬
was

to

power

margin

turbed not by

the total amount of
credit, but by the fact

consumer
or

the

indication

relaxation

largely

that

the ball in the air.
ess

successive

terms

of

responsible

has

for

been

keeping

This is

a

proc¬

which cannot go on indefinite¬

ly, and when it
come

time

a

there will

ceases

when

repayment of

old

debt will catch up with new
extensions of credit. The special

stimulus
net

of

which

has

of

goods

increasing
credit,

consumer

contributed

to the record

tribution

rapidly

a

supply

much

so

production and dis¬

of

durable

consumer

during the past

outside

tivity

handicap, if not a badge

a

of moral delinqency.

both

question involved in
is whether an attempt

basic

The

cases

specific types of
exert a stabilizing influ¬
these

of

tion

credit to

the

of

areas

on

ence

regula¬

through

made

be

economy

will

year

and production, or

should

the

with efforts to regulate
all

content

be

over¬

availability and cost of credit,

from

This is

a

subject

de¬

consumer

which many

on

voices have expressed
many views,
but usually
they have not been
views
which
seemed
objective

enough to help resolve the
tion

in

the

ciety

as

there

are

best

interests

whole.

a

I

those who

selective

credit

ques¬

of

know

so¬

that

believe that

controls

are

a

'

dangerous
general
have

step

over-all

no

the

on

desire

road

to

planning, and I
to

become

fel¬

a

low

traveler on that road. But I
do believe that there is
a tempta¬
tion to abuse consumer
credit in

boom
come

times, that it
serious

a

can

thus be¬

of instabil¬

source

ity in

our

economy, and

would

not

jeopardize

our

that

we

general

freedom

from direct controls
by
giving the Federal Reserve System
permanent authority to
regulate

consumer

credit.

I

however, that this
better held if it

freely admit,

view would be

were

based

more

firmly

on objective study and re¬
search into the place of consumer
credit in our economy and less on

observation and opinion.
the

sort

tion

and

of

basis

action

for

which

That

is

considera¬
you

could

provide.
The

same or
something similar
might be said of mortgage financ¬




bias

of

vate

form

of

other

financial

criss-cross

fields

the

formance

and

characteristics

that general

far, suggests to me
credit

controls

ular

exert

can

only with a

of credit

types

ef¬

an

these partic¬

on

considerable lag, and that we can¬
not

countervailing
the economy to main¬

rely

forces

upon

in

tain overall stability.

where I
have been heading in these some¬
what random remarks, which have
touched on a few aspects of cen¬
Perhaps

see

can

you

general
frame

that

has been
A plea

purpose

my

plea for help.

a

economics

theoretical

come

effectively to
the aid of practical economics in
such fields as central banking.
steadily and

more

I

recognize that theoretical

nomics

is

the

economics.

basis

And

practical
recognize that

I

theoretical

economists,

time,

mostly

seem

ferred to work

ples,

on

in

our

to have pre¬
general princi¬

building models of
performance, rather

on

or

economic

than

eco¬

of

economic

on

their effects.

policies

and

I have not the com¬

petence to challenge the value of
their work, but I question whether
it is enough.
I question whether
economists

individually and

as

a

group can fulfill their obligations

citizens,

as

and

to

well

as

students

as

scholars, if they

bring

do not try
interests together.

these

I would

say

political

economy,

need

we

revival of

a

and I would in¬

vite you to look on central bank¬

ing

as

good place to start.

a

economists

of

it

did

over

not

The

earlier

day did
jump into the thick
current issues, and
an

to

seem

their

lower

academic
now.

standing then nor should
They were pamphleteers,

they organized and particinated in
public

meetings

and

discussion

they brought their influ¬
to
bear in
anv
way they
on public officials and pri¬

groups,
ence

could

vate citizens.

and

They

provocative

pungent

were

in

debate.

Ma-

caulay said of James Mill and his
followers,

occasion, "These

on one

whose

smatterers

attainments

just suffice to elevate them from
the insignificance of dunces to the

dignity

bores."

of

Perhaps that
little too violent
for our present mood and condi¬
tion. Eut it might be better than
withdrawing completely into, a
sort of

thing is

realm

of

esoteric

dulging in
in

an

dealing

mote

public

in¬

or

with

much

your

peers

and

that issues are
clearly enough to

attention

and

pro¬

public

understanding.
By
your studies
and your research
and your application to the prob¬

human

on

building

continuing

see

opinion.

that

right

I

would

more

like

to

vigorously

exercised.
I feel that it could be exercised
more

vigorously and to advantage

been

achieved

need

by

Microwave

beamed

from

relay towers, eliminate
wire lines, carry a!:
of traffic than,

for

Electronics
lished itself

has

product of research.

microscopy,
opened
tion

models of the
future, while

medicine,

of the

and

chemistry,

300,000

diameters

have

private

influenza

well-being.
If you will
against me, I would say
that you have left the latter task

to the improvised judgments of
practitioners who have lacked the
work

out

for

the

actions

a

monetary
and
credit policy in recent years.
In
fact, some extravagant claims are
again beginning to appear con¬

cerning the

influence
monetary measures in curing
or
ameliorating our economic ills.
Governments may be tempted to
and

power

of

commit

in

rors,

condone

or

the

policy

can

and

the

in

banking

hope

economic

er¬

that monetary

redress

the

balance,

hope that the central

system

will

stand

as

a

buffer

between

and

electorate which chafes at

an

restraint.

the

Government

We shall have to guard

on.

industrial

tablished
as

used

by

keen

themselves, and rightly
of the principal

one

governments

means

to

try

to

national economies in order

without the stifling restrictions of
more
direct physical controls.
What I
is

and

money

and

of

ular.

in

the

banking

central

I

like

now

renaissance

a

and

would

in

to

study of
general

banking in partic¬

would like

to

see

a

fresh

thorough examination of

existing banking and credit
chinery and our money and
ital

markets.

out

of

tion

such

would

see

I

would

study and
come

new

examina¬
ideas

and

policies

and

It would be

a

private

task worthy of the

best talent you can
on

actions.

bring to bear

it.

metals of

Alfred

L.

announced

Vanden

his

the firm of

Broeck

withdrawal

has
from

OpDenheimer, Vanden

Broeck &

Broeck

Co., New York City, ef¬
April
30.
Mr.
Vanden

had

been

firm since its

associated

with

organization in

1947.

Mr. Vanden Broeck

•

'•

••

V

*■'.

'

is

now

en¬

•'

.

Military

tributions

Electronics

While
round

ments,

in

of

electronic

devices

the

and

has

devel¬
various

progressed

anything dreamed of

few

a

years

time,

same

that

radar

far ahead of

only

the

know

we

opment

At

ago.

the

electronic

control,
tracking and computing devices
of startling complexity, have been
developed for guided missile pro¬
and

for air borne detection

fire control functions aboard

aircraft.

date

of

his

all-transistor

built.

It is

a

developmental model produced by
RCA
laboratories
nearly
three
years ago. It's power consumption
small that it now is operating
only its second set of batteries,
despite hundreds of hours of dem¬
so

on

all-transistor

an

confidently
the

the products

portable

is

that many of
intended

expect

developments

now

exclusively for military use will,
radar, ultimately find sig¬
nificant application in our com¬

and services that

producing for the Armed
An important example is

are

Forces.

transistorized

which

I

walkie-talkie

have

here, although
only a fraction of the

weighing
original 50-pound walkie-talkie, it
has amazing performance over
distances up to half a mile.
While still on the subject of the

transistor,
that

out

I

would like to

this

developed

tiny device

point

be
the heart of totally

as

may

new
electronic equipment, espe¬
cially where miniaturization is an

important factor.
Also, in large installations that
now require thousands of vacuum
tubes, such as electronic comput¬
the transistor will mean enor¬

ers,

savings in

mous

As the development of military
electronics
continues,
we
may

supply, heat
replacement.
Besides

space,

output

power

tube

and

the

transistor, many
uses
are
evolving from
electronically active solids. New

other

like

ferroelectric

mercial and industrial activities.

advantage of simplicity in storage
and switching functions. New fer¬
romagnetic materials are enabling

For

instance, most of the major

American

airlines

now

radar

essential

safety factor.

as

an

oped

by

"see"

as

radar

RCA
much

regard

equipment devel¬
enables pilots to
150 miles ahead

as

in sootting storms and selecting
undisturbed navigation paths.
Such equipment also is effective
in

warning against topographical

obstacles

cently

such

as

Wyoming with

that

an

which

air

re¬

liner

rash

to say that we have barely
scratched the surface and that the

potentialities
undreamed
not

of

of

electronics

wonders

hold

that

may

be

tapped in our lifetime.
This, however, is the view of most
leaders in

Many
ing into

We
a

that is felt

miniature

essential

ents

circuits.
terials

tronic

future

are,

in

in

high

the

per¬

compon¬

transistorized

Electroluminescent
herald

the

day

of

ma¬

"elec¬

light" and mural television.

These

and
other
materials
dis¬
coveries lead to two major results:
increased
markets
for
present

types of equipment because of de¬
size

and

markets for

apparatus

never

complexity, and
newly conceived
previously feas¬

ible.

"Electronic
An

Photography"

RCA

system of recording
black-and-white and color tele¬
vision programs on
magnetic tape
has reached a stage of
ment where it

now

is

develop¬
being field-

tested

in

tional

Broadcasting Company.

New

York

by

the

Na¬

This system has been
described
are

com¬

and these promise to

the

achieve

in

industry.
materials

new

use,

dominate

try.

our

to

in

loss of 66 lives.

offer

scientists

new

a

materials

formance

creased

doomed

scene.

effective

first
ever

the

military field.
security restrictions sur¬
many of these achieve¬

midst of

the

the

we
.

of its greatest technical con¬

some

the continuance of active business

withdrawal from his present firm.

is

Use of the transistor has meant

con¬

The electronic science has made

gaged in making arrangements for
upon

varying

Taking all of this into consider¬
ation, it may sound somewhat

From Firm in April

items which

few

a

this small radio.

a

Transistors and New Materials

Vanden Broeck Retires

many

of

of

Weather
cap¬

have here

of

the

found

ditions of temperature and stress.

ma¬

new
proposals which would give
shape and direction to future nub-

lic

has

our

hope that

the

surpasses

havior

military

so,

performance,

an important forward step in min¬
iaturization—particularly in many

monetarv

re-es¬

differ¬

a

transistor

synthetic rubber latex to the be¬

grams and

have

field,

electron
variety
ranging from the study of
fibres and the structure of

against asking too much of mone¬
tary policy. But it is a fact that
measures

in

portable radio

is

observing the effect of vaccine

paper

which

of

quite
of the

would like to demonstrate.

of uses,

they must take.
renaissance

-

been
as^

the

to

It is said that there has been

size

transistor

Here

areas

microscope

coherent and consist¬

a

basis

ent

note

the

conventional electron tube.

particles, analyzing the onstrations in the United States
virus of smallpox and studying, and abroad.
the structure of cancer tissue. In
A second developmental model

not use it

the equipment needed

up

will

in
a

I

metallurgy

Photographic magnifications
to

op¬

very

types of tubes.

host of other sciences.

a

on

believe all of you now have
RCA transistor in your possession similar to tha one now being

I

in

workers

periods

I

amazing

has
world for explora¬

research

long

many

can

an

small

magnification,

new

a

for

that

means

batteries.

However,

a

The electron

possessing

of

powers

as

for

You

estab¬

well

as

achieved in such diverse

or

,

small

and

already

tool

a

Yet, the transistor takes a
required by

exhibited.

Microscopy

as

about the

transistorized instruments

to: erate

ence

way

time

any

variety

Electron

with

or

silicon and

tubes. ..This

too

ame¬

a

of the functions of electron

many

radio

station

which would contribute
effectively to public policy and
a

the

of

direction to official action and to

public

be

Such

higher degree of accuracy and
reliability.

neglecting the hard but reward¬
ing task of studying the present
in

to

sense

to

kernel of corn—performs

a

dependent

treatment,

Utopian

dream world

fective

some

behavior

such

to

nable

too

or

size of

greater re¬
lower cost than

at

means.

the refinement of old

situations

to

manium

various

present wire facilities, and insure

are no longer wholly
relevant, with the cataloguing of
new economic processes, with the
application of mathematical equa¬

tions

yet

the

ideas which

lems of economic theory, you have
earned the right to be heard, and

give

yourselves

occupy

of politeness

so

drawn

attract

jargon,

excess

with

public,

your

seldom

a

to

say,

and

greater

critical in the develop¬
ment of central banking.
You have tended, I venture to

than

liability

station via

coming

example, is
influence on
electronic products and services.
This tiny device—made of ger¬

increasing

private

of

for

,

The transistor, as an

exerting

tubes.

signals

of

systems

call

we

solid-state electronics.

fraction of the power

other

banking and in¬
banking, and on the per¬

miles

discovered

systems operate with
has

commercial

of

vestment

channel

been

through research in what

America

more

in the United States.

users

institutions,

both

of

installed

microwave

banking system in such an econ¬
on the growing importance
of

Corporation

has

526,030

reserve

Our experience, thus

fective influence

alone

the functioning

fractional

a

over

Radio

monetary prob¬

mixed Government-pri¬

a

economy, on

and

Not
done, I

has

terials

communi¬

long distances for
teletype, facsimile, voice, tele¬
metering, traffic control and su¬
pervisory functions.

or¬

an

multiple-channel

cations

special

balance out.

:

*

the

vide

ap¬

can

major areas

it

the future?

to

by

fluctuations in the ■ our money and capital' markets.
of the economy will These/ are subjects which are be¬

that

hoping

not hesitate to

productive capacity to
unsustainable limits—for the pres¬

who
this

System,

talents

would say, on the
lems of

of employment
we

analysis

ganizational
viewpoint.
enough work has been

which

whether

the

without

omy,

of battle

our

field

cross

more

critical

their

ply

which, in the past, appear to have
been major sources of instability

drove

mand

5

page

Changing Design for Industry
And Living Through Electronics

fertiliza¬

fiercely when housing is discussed
as
to make calmness and objec¬

then be gone, at least
temporarily.
Will it then become clear that we

ent—by borrowing

from

The

money

But their

and

con¬

different reasons,

for

stock

I

as

of

banking problems.

thoughtful and disciplined minds

to

Well, I am not jolly and easy
in my mind.
I am disturbed by
the present situation in consumer

statisticians

and

students

tion

In

com¬

how

instalment

Continued

System;

tives

in

are

thoroughly in debt;

Reserve

that.

they deny themselves noth¬
ing; how jolly and easy they are

fortably and

Federal

needs

tral
banking organization, poli¬
cies, and techniques, while not
mentioning others of equal or,
perhaps, even greater importance.

how well those live who

banking.

work

of should

control

instalment credit. I sup¬

consumer

central

able

and

and

of

We have excellent research staffs
in

study

field

Thursday, January 5,1956

electronics

fact,

in

the

revolution in materials

throughout our indus¬
The usefulness of these ma¬

by Brig. General David
Chairman of the Board of
a

major step into

tronic

an

era

Sarnoff,
RCA, as
of "elec¬

photography."

Although
under
development
primarily for use in television, the
new tape
recording technique has

-

f

Volume 183

Number 5496

The Commercial and Financial Chronicle

...

(89)

far

wider

the

field

ment.

applications outside of

It

totally

entertain¬

television

of

in

serves,

effect,
of

means

new

as

a

photog¬

rather than

tainment.

that,

how

useful

the

services

not

only in tele¬
vision, but in the motion picture
and
theatre
industry, in home
entertainment and education, and
in industry in general.
An un¬
limited number of copies of tape
recordings can be made quickly
and economically.
The recorded
tapes can be preserved indefininitely or wiped off "electroni¬
cally" and used again and again.

its

of

electronics.

The

Music

in

us

dustry

the

believe

that

there

are

many products and services in the

offing that
shadow

of

many

wonders

of

on

the

today.

electronic

For

electronic

an

over¬

example,
encouraging prog¬

RCA has made
ress

eventually

may

air

condi¬

tioner,
moving

designed
without
any
parts, motors or com¬
pressors—in fact, a noiseless ma¬
chine.
tists

As

prelude, our scien¬
have demonstrated

a

already

refrigerator which
achieves
practical
storage
and
freezing temperatures entirely by
electronic
While

means.

the

electronic

cooling

system still is in the research and

developmental stage,
ful

that

uct

can

this
be

within

to

hope¬

revolutionary prod¬

brought to the market

the

stands

we are

few

next

that

reason

It

years.

if

this

can

be

achieved, it will be possible
to
produce
an
electronic
washing machine and virtually
every
other kind of household
appliance.
also

Electronic

Another

Music

Synthesizer

interesting develop¬

ment going forward at RCA Lab¬

oratories is what

call the RCA

we

Electronic Synthesizer.

This

is

a

system capable of producing en¬
tirely by electronic means any
musical
tones

tone

that

combination

or

be

may

the human mind.
vides

the

the

and

engineer
that

limitations.
which
years
can

composer

with

has

The

has

by

The system pro¬

musician, the

musical tool

of

imagined

a

new

physical

no

Synthesizer,

resulted

from

many

of RCA acoustical research,

produce

electronically
an
infinity of musical forms employ¬
ing sounds of voices and instru¬

ments,

or tones that may
have
been
heard,

before
in

never

either
blended

solo

performance or
in any desired orchestral arrange¬
ment.

Development of

instrument

an

the

objectives

believe

Higginson

banking firm, has become

For

ences.

the

Chemical Corn

in

arts

the

and

lenged

to

put

sciences

work

its

chal¬

are

continuously

potentials
of the

some

have

fore

been'

outstanding

more

amples of its effect

ex¬

William F. Lecraw

But

men.

in its pres¬

even

ent stage,

I believe you will agree
that the RCA Synthesizer achieves
extraordinary

results.

At

this

point I would like to demonstrate
by

of

means

the

results

recordings

instrumentalists and

no

cal

instruments

been

been achieved

Among

the

no

of

musir

whatsoever

All of the

used.

some

far accomplished.
will hear employs

so

The music you

have
have

tones

electronically.

musical

selections
from which the excepts have been
synthesized
struments
ber

of

and

works

ognize

—

Clavier":

the

simulated

that

musical
are

you

"The Well
Fugue No.

a

in¬

num¬

may

rec¬

Tempered
2, in the

imaginary harpsi¬
chord; "Hungarian Dance No. 1,"
an
engineer's interpretation of
instrumental
sounds; "Oh, Holy
style

of

an

Night," in the style of an organ;
Sweet
Home"; an en¬
gineer's conception of the music;
and "Medley of
Stephen Foster
Music," in the style of a "Hill¬
"Home,

Industry

understand

that

for all of
what

we

us

to

have

just heard represents a scientific
and engineering achievement —




this

was

that

record.

funds

the

to

its

be

The

went

capital

on

of

standard

increasing
capital
banking field: first,

of

of

departure from

a

stock

dividends

by
unallocated

capitalizing
secondly, by

reserves;

rights to contribute

of

means

funds to

new

the bank's

capital set-up; thirdly,
by mergers. Chemical Corn Ex¬
change has customarily adhered to
the second procedure, under which
a
portion of retained earnings

Outboard, Marine
Offer Underwritten

held

Outboard, Marine & Manufactur¬
ing Co., the leading manufacturer

were

of

dividend.

to subscribe at $37lk per share for
213,845 shares of additional com¬
stock at the rate of

one

share

for each ten shares held of record

Jan.

on

offer

will

(EST)

on

is

ing

4, 1956.

The subscription

expire
at
3:30
p.m.
Jan. 23,1956. The offer¬

being

underwritten by a
of investment firms headed

group

A.

Sumner

ber

of

the

change.

New

This

company's

the

election

presidents,
member

James
elected

a

Mr.

common

holders,

ber of

wife
and
man

of the

Board

Chairman

and

acted

as

Evinrude

will

substantial

continue

amount

of

to

Mr.

own

the

a

stock.

The company, producer of
Johnson and
Evinrude outboard
motors and

Lawn-Boy

will

power

lawn

the proceeds of
its offering to common stockhold¬
ers to provide additional working
capital required by an increasing
mowers,

use

volume of business and to cover

a

expansion
program which calls for an esti¬
mated outlay of between $12,000,000 and $13,000,000 over the next
part of the cost of its

five

The
an

company

additional

money

vate

of

to

of

$4,000,000

during

sale

expects

raise

refund

$6,000,000
outstanding.

and

of

will

notes

of

whom

the

of

is

a

invest¬
vice-

new

A. Sumner Gambee

J.
&

H. Brooks & Co., D. T. Moore
Company and Seeley & Lindley.

Mr.

Gambee

is

a

director

Water

Co.

of

and

the
was

on

the

sales

common

The

a corporation to join the
Exchange since that institu¬

its

amended

constitution

in

1953,-making incorporated firms
eligible for membership.
Previ¬
ously—from the time of its organ¬
ization in 1792 until the constitu¬
was

changed—the Exchange
memberships to indi¬

viduals and

partnerships.

Earl

T.

with

Frazey

value

and

$10,—
f

is

now

Hazelhurst,

affiliated

Flannigan

&

DENVER, Colo.—Dean O. San¬
is

ders

Paseo Lane."""'

with

Intermountain

9.6 to 1
11.4 to 1

Bank of New York

Chase

banks, at the ex¬
investments,
mainly

government' bond holdings, this
has
not
been
of
great
enough
proportion to increase unduly the
"risk
assetv
ratio, that is, the
of

assets

other

than

cash

and governments to capital funds.
In any case this ratio is not of

importance

great
still

today,

as

excessive in

not

are

either to total assets

loans

relation

to capital

or

funds.
is probable

It

banks

will

that other major
go
to their

in

1956

stockholders for additional capital
with
the
possibility here
and
there

of

an

accompanying

stock

dividend. For the greater part, the
New York City bank stocks are

selling moderately
above
their
book values, and this will make
it easier to sell new capital than
at times in the past when book
values

were

below market prices.

FHLB Notes
Public

series

offering

on

Market

of

$125,000,000

1—1956

made

(Jan.
5)
through
Smith, fiscal agent of the
banks, and a nation-wide selling
group of securities dealers.
The

fund

the

Empire Trust

15.0 to 1
10.4 to 1

;

Guaranty

Trust

On

ample,

Loan

other

fiduciaries

are
ex¬

interior

in .the

banks

west.

ratios

than,, for

random group of major

a

the

As

and

York

New

Federal

the

have

will

a

obligations of the Federal
Banks and are legal
for investment by savings banks,
insurance companies, trustees, and
of many

under

laws

the

states.

4.8 to 1

these

average,

conservative

more

matur¬

$975,000,000 consolidated
note obligations outstanding.
The
notes
are
the
joint and
Home

8.8 to 1

States Trust-.

United

notes,
Banks

several

9.6 to 1

Trust

York

Loan

9.9 to 1

13.5 to 1

Trust

Morgan & Co._

of

of

6.2 to 1

11.0 to 1

Manufacturers

amount

maturing

Home

City

similar

a

ing notes. Upon completion of the
offering 'and the retirement of

total

First National

priced at 100%. The
of the offering is to re¬

are

purpose

13.5 to 1

______

con¬

today

Chemical Corn Exchange

Manhattan

non-callable

solidated notes d^ted Jan. 16, 1956
and due Aug.
15, 1956 is being

12.1 to 1

far

banks

have been

operating more-or-less
deposit ratios for some
time, it is evident that Chemical
Corn " Exchange forsees
a
suffi¬
ciently marked increase in its

Joins F 1 F Management
(Special to The Financial Chronicle)

.

_

f

DENVER, Colo. — Edward M.
Mahoney is now with FIF Man¬

Corporation,

agement
man

Street.

444

Sher~

,

.

these

on

of business over the

warrant

to

near

increase

an

in

capital funds for as general
corporate business grows larger
it has need for greater loan ac¬
commodation and it is the obliga¬
of

tion

the

banking
the

available

make

service

this

lending

system

to

facilities

to

growth.

limitation

bank's

A

to

a

borrower is measured by

single

its capi¬

the greater the
growth in the size of our major
corporations the greater will be
the need for credit.
This has, of
tal

and

funds;

NATIONAL
Bankers

Kenya

With Founders Mutual
(Special to The Financial Chronicle)

DENVER, Colo.—John E. West
has become connected with
Founders Mutual

Depositor Corp.,

First National Bank Building.

With Harvell Inv. Co.
(Special to The Financial

Chronicle)

DENVER, Colo.—John W.

Deal

joined the staff of Harvell In¬
vestment Company, Travel Center
has

Building.

Mr. Deal was

previous¬

W. Hicks & Co., Inc.,
Gray B. Gray & Co. and Merrill
Lynch, Pierce, Fenner & Beane.

ly with J.

Fla.

MYERS,

—

C.

Oren

H. W. Freeman &

Co., 2425 First

to

the

Government

Colony

and

in

Uganda

Bishopsgate,

Head

Office:

West

London, E. C. 2.
End
(London)
Branch

26

I

Mr.

Kidder &

Smith

Co/

was

office

local
<

•

formerly
of

A.

M.

Bulletin On Request

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

Burma, Aden, Kenya, Tanganyika,

Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized Capital—__£4,562,500

Paid-Up
Reserve

£2,851,562

Capital
Fund

£3,104,687

The Bank conducts every description of

the

Higher Bank Earnings
In Prospect

Branches
.

(Special to The Financial Chronicle)

FT.

BANK

of INDIA, LIMITED

Smith With Freeman Co.

Smith has become connected with

El

to Cap. Funds

7

Bankers Trust

He was formerly with Den¬

with

2608

York

of

pense

notes

Ratio of Deps.

Securities, Inc.

Street.

at

now

Securities, Inc., 1714 South Broad¬

business

offices

Adds

New

(Special to The Financial Chronicle)

SACRAMENTO,Calif.—William
B. Rudd is engaging in a securities
from

de¬

being necessitous.

term

SPRINGS, Colo.—

Intermountain Sees.
I

way.

par

of

its

(Special to The Financial Chronicle)

ver

cents

ratio

lQ-to-1

posits to capital funds to indicate
a
capital increase by rights as

volume

With Hazelhurst Co.

per¬

centage increase in loan volume at
the

Everett

as

tion

proposed debt financing, the com¬
pany will have outstanding 2,352,503
shares of common stock of
700,000 of funded debt.

excludes

best known investment firm oper¬
Stock

quarters

sizable

a

traditional

New

ating

several

been

Federal Home Loan Banks 3.20%

buying department.
Lee Higginson is the largest and

213,845 additional shares and the

83 V3

here

used

for

has

of whatever description.
However, as will be seen from
the following figures, none of the
large New York City banks is
far
enough removed
from
the

J. P.

business

new

While

there

improve its

[reserves

Irving Trust

company's

com¬

Giving effect to the sale of the

as

and

pany

paid 25 cents per share in the first
two quarters of 1955.

term

the

COLORADO

stock.

this

Hanover Bank

now

has paid quarterly dividends
of 40 cents per share in August
and November of this year, having

to

ratio, that is, the ratio
deposits to capital funds; and

of

Mr. Lecraw joined Lee Higgin¬
son in 1947 and is associated with

also

have

bank

tober of last year.

increased
from $27,033,000 to $85,856,000, the :Co., Mining
Exchange Building.
latter figure covering the fiscal
Mr. Frazey was previously with
year ended Sept. 30, 1955. During
Waddell & Reed, Inc. and prior
the same period net earnings rose
thereto with the Colorado Savings
from $2,976,000 to $7,864,000, the
latter being equal to $3.68 a share Bank.
<-j\company's

the

vice-president of Na¬
tional Theatres Corporation and
Empire Trust Company.
He re¬
signed from Empire Trust in Oc¬
a

new

During the past five years the

of

need

'

1956 through pri¬

notes

Capital increases by a bank by
of
rights
are ' usually
coupled in the public mind with a

Exchange firms, including

this

and

an

stock

a

of "deposit

member of the
since 1930, has
floor partner for a num¬

formerly

Briggs

with
vice-

new

The other

are

Hackensack

Mrs.

three

director

of the Executive Committee. After
sale

disclosed

announcement

of

Brooks, a
Exchange

Stock

Briggs,
of the Chairman of the Board,
Ralph Evinrude, Vice-Chair¬

Ex¬

and William F. Lecraw.

stock at $421/2 per share. The pro¬
ceeds will go to the selling stock¬

B.

Stock

the Exchange.
He is
Brooks, who was also

presidents

Beatrice

York

one

of

W.

ment house.

Mrs.

Gambee

was

the

Concurrently the underwriters
are offering for public sale 100,000
company's

until

reserves

means

by Morgan Stanley & Co.

shares of the

in

appropriate time to issue

outboard motors, is offering to
holders of its common stock rights

course, been one of the
factors
behind the numerous bank mergers
in the past few years.

ratio

the

issue

growth
and that

three

are

in

way

new

news.

of retained earnings

methods

Electronics.

is

announcement

There

Changing Design for
and
Living — Through

W. B. Rudd Opens

Summary
is important

Brooks

of The

billy" band.

It

W.

economics,
culture and society.
I have, in
fact, endeavored to give you an

restricted

search

James

on

tion

re¬

through

financed

out

electronics.

of

the

to

ask¬

to. increase
the distribu¬

that traditionally the bank

say

had

30, 1956.

our

capital

to

remind you that the attempt here
has been to highlight the progress
and

shareholders

stock, that, indeed,

together.

Brought

its

tion of rights to subscribe to

during the fiscal year ending Sept.

challenge to

enormous

before

Directors'

mon

Bank Stocks

Exchange Bank

ing for authorization

good of America,

summarizing, I would like to

idea

—

When Chemical Corn Exchange
Bank announces a proposal to be

the

characteristics of tone represented
an

This Week

a mem-

will

you

By ARTHUR B. WALLACE:

of

years.
Approximately onehalf of this amount is to be spent

with

Corporation, 40

Wall Street, New York City, 108old Wall Street investment

year

fidelity all of the

to handle

Bank and Insurance Stocks

physical sci¬
ences in
their relationships with
those engaged in the humane sci¬

small

a

I

workers

In

electronics in¬

the

and

Lee

that this may also apply to

agree

closer

indicated at the beginning,

engineer
and

another.

one

-

As I

shows

understand

achievements

Higgieson Corp.

Member ef N.Y.S.E.

Synthesizer

to

Lee

the

is

important it has become for

musician

Electronic Air Conditioning and
Household Products

those of

this

entirety,

electronics

all

form of enter¬

new

in

work

raphy, performed instantaneously
by electronics. Foreseen for it aie

a

The remarkable fact is

33

banking and
Trusteeships
'

also

exchange

and

business.

Executorships

undertaken

Laird, Bissell & Meeds
Members New

Members

York Stock

American

120 BROADWAY,

Exchahge

Stock Exchange

NEW YORK 5, N.

Y.

7-3500
Teletype—NY 1-1248-49

Telephone: BArclay
Bell

(L. A. Glbbs, Manager

Trading Dept.)

Specialists in Bank Stocks

34

(90)

The Commercial and Financial Chronicle

Continued from page

16

Reynolds Group Offers Continued from page 4
Magnavox Pfd. Shares

Analyzes 1953 Recession and Inflation Virus
buying

with

Demands

borrowed

upon

money.

ciates

schools

of The

and

better

roads, it does
that Federal spending policy

seem

markets

many

performed by govern¬
ments, and to the needs for more

is

still oriented toward the idea
capacities,
leading to overtime, labor short¬ that the economy is 'mature' and
age, industrial price advances, en¬ would be 'stagnant' if the gov¬
larged
plant
and
equipment ernment did not apply heavy taxes
programs, and increased needs for to insure that money would get
savings at a time when people spent. The actual experience is
exceeded

productive

were more

"We

quarter,
that

save.

needed

from

one,

President,

had suffered
result

shock.

a

in

We

got

totally unexpected
the distressing news
Sept.

on

24,

illness that might

an

his

unavailability

for

the

inventors

turn up new

can

-

to

buy

faster

and

salesmen

things for people
than-

winner—after

a

in

the

that

disposed to borrow and

spend than to

the

bread¬

tax—can

for

pay

them. So he stretches his credit 1o
the

limit

to

ernmental
markets

compete

with

demands
to

and

gov¬

replenish income

the government abstracts from his

would continue to enjoy his wise
leadership and policies for an ad¬

least

four

In

years.

general

people went ahead. But they be¬
came
more
inclined to stop and
the

reassess

soundness

economic position.
"The prosperity

joyed did not

although
factors

we

in

we

come

the

have

en¬

time.

have

we

continue

can

by

the jsame

to

con¬

going

stability.
Virus

rising
incomes, increase
debtcarrying capacity. It is true" that
our

accumulating national savings

need

to be put to productive
and that this entails a

use

home-builders, industry,

and

government bodies to borrow. But
when our collective desires to
bor¬
row

we

exceed

desires

our

to

save,

are

economically unstabilized.
We find that, to finance
our am¬
bitions, unwholesome amounts of
Federal Reserve credit have to be
drawn into
to

satisfy

use

our

and that

business,
desires, is bidding

for labor and materials
and
raising prices. After all, as the
metal markets have been
more

saying,

there

limits

are

undertake at

to

what

we

can

time.

one

"Some people feel that
chronic
mild inflation is the
way to per¬
petual prosperity as it is to
easing
debt burdens. The truth is
that
inflation is a tax on the
of

the

poor,

savings
impediment to

an

orderly forward planning, and the
harbinger .of crisis and depression.
Nations
experiencing chronic price
inflation like England and
Sweden
find

inflation

and

political liability
by one means or

a

struggle

another to stop it. No

country

has

dential

election

ever

one

won
on

a

a

in this

Presi¬

platform

advocating inflation.
"In

a

joint

cies.

We

plus

a

American

meetings

of

Economic and

circulation.
of

activities

still

vast

have

and

most

the

Finance

needs—the

them

of

one

responsi¬

a

budget
duces many proposals for amelio¬
ration,
each
open
to
serious
objections. The real question—and
the

President's

illness

point —"iswhether

it

gave

the

Federal

human control. The obvious solu-

tiQn

is for the Federal Govern¬
to'coqcentrate its energies

the

things that must be done

the Federal level and leave the

on

high

level

of, state

and

local

government

Bodies. "After all/as E. B. White
wrote, the American theory

once

is

that

the

individual

is

a

very

competent little guy.
"There

are

laying stress

manifold

for

reasons

controlling Fed¬
eral Government outlays at the
present time. Prosperity generates
on

heavier revenues, and the natural

tendency

The

Unbalanced Budget

"The

of

Congress

is

to

has

been

suggested.

This

might

cement

cause

for

excessive

at

through

in

1961

each

and

enlarging

outlays,

Government
down

some

cannot
the

pay

most

the

should

Federal

be

public debt. If
down public debt

prosperous

era

history," it asks, "when
going to?" The "Letter"
like to

paying
we

in

of

our

are

we

would

honest and fair tax
system to sustain economic growth.
see

to

spare, the most
im¬
perative need is to give attention
to the

corroding influences of

ex¬

cessive income tax rates.
i.

Joins Lamson Staff

L

Boulevard,

members

of *the

Midwest

Stock

New

York

and

Exchanges.
Mr.
previously with John

was

A. Dawson

&

1958

year

2,400

shares

concern.

(Special to The Financial Chronicle)

government

spending
never

been

CHICAGO, 111.—Robert
ver

stable

growth.
With all due respect to the
neces¬
sities of a strong

military estab¬

lishment, to the increase




in

the

of

has

been

added

to

Webber-Simpson

&

South

La

Salle

Street,

of the Midwest Stock

Co.,

staff

208

members

Exchange.

and

for

any

were

the

in

the

1940, when

November since

''

involved

November

rise of 23%. This

a

failures

climbed

the heaviest volume

was

^

Dun's

Failure

is

and

Manufacturing and retailing failures were the highest in the
last six and seven months, respectively.
The manufacturing ■ rise
came largely from the textiles and apparel industry and from the
lumber, furniture and machinery lines. In retailing, the increase
centered in apparel, automotive and drugs. The toll in the
auto-j

larger inventories and additional
capital. A portion may be used for

most

the

purchase of the assets of

Geographically,

an¬

radio

purchase

company,

a

if

the

such

to be consummated

were

Such

would involve

7

conditions

and

posed

purchase

of

the

ments

or

signed

or

•

more

At

have

will

been

time, the larger
-

receivers, television-radio-phonograph combinations and hi-fi
phonographs. A smaller part of
its

business is in the

1955,

the

sales

of

cents

of 1954.

June

$550,751,
same

69"
period:
or

•' »■

Giving effect to the sale of the

the result of labor and material

Three

of

stock, capitalization of the
consists of $8,000,000 in

3%% V-type loan notes, $3,000,000
in 4% instalment
notes, 120,000
4.75%

cumulative
par

and

common

796,614
stock, par $1.

hope 'to hold

$50,

the

underwriting
are: Glore,
Forgan & Co.; Hemp¬
hill, Noyes & Co.; Lee Higginson
Corp.; Merrill Lynch Pierce, Fenner
&
Beane;
Paine,
Webber,
Jackson & Curtis; Smith,
Barney
& Co.; Alex. Brown &
Sons; Cruttenden & Co.; Francis I. du Pont
&
Co.; Auchincloss, Parker &
Redpath, and Kalman & Co., Inc.

Schirmer, Atherton Branch
MANCHESTER,
the

supply of skilled workers.

H.—Schir¬

New

York

office

at

and

1015

Elm

management

Phelps.

Boston

has opened

'

a

under

Norton

-

„

R.

the

face

prices. -The re-):

of

*

~

-

...

..

executives

in

are

scarcities

of

by.*

higher costs

.

materials,

.

Z

sufficient

a

-

.

•

many,

,

by metal¬

particularly

nickel and certain steel products.
Aside from the
ment records,

expansion
noted.

setting of

^productive

of

The

.

production, sales'and employ-'.:

new

the biggest metalworking

industry

capacity,

expects

metalworking

6%

add

to

in 1956 will be the

news

the

capacity during the year, which will be

its

to

weekly^"

manufacturing

of the most active

one

periods of all time.

Largest expansion plans

rials, such
be

next

as

those for providing basic mate¬

are

steel and aluminum.

The expansion programs will

completed in 1956, but will

several years, it pointed

into operation

come

the

over

out.

"Steel's" price composite on steelmaking grades of
scrap rose
for the ninth consecutive

week, climbing to $51.83

hike of $1.16 over the previous week's
on

figure.

a

gross

ton—a

Its price composite

finished steel is unchanged at $127.68 a net ton from the
revised

figure for the preceding week.
The

American

Iron

Steel

and

Institute

announced

that

the'

operating rate of steel companies having 96.1% of the steelmaking
capacity for the entire industry

capacity

2,373,000

for

tons

the

of

week

will

beginning

ingot and

steel

for

95.7% of capacity and 2,309,000 tons

be

at

Jan.

an

2,

average

1956,

castings

as

(revised)

a

of

96.4%,

equivalent

compared
week

to

t

with

ago.

The industry's ingot production rate for the
weeks in 1955 is

based

-branch

Street

of

Stock

line; in

"Steel" reported that the biggest problems foreseen

working

Atherton & Co., members of

Exchanges,
the

N.

the

plant managers expect to have difficulty in obtaining

not

in

increases, "Steel" stated.:
increase

to

Metalworking employment will increase 6%, although

con¬

vertible preferred

stock,
shares of

cost

four.expect to be forced

company

of

expect their companies to
change from 1955.
*

no

<] Selling prices of metalworking products will rise 5 %,x largely

$3.05 per "ipmmon

share.

shares

see

increasing their efficiency in manufacturing and distribution.

net

1955, sales amounted to
$55,071,765
and
net
income
to

new

The remainder

and

30,

or

salbs.

mainder

For the fiscal year ended

$2,426,087,

iO executives, it acMed, expect 1956 sales will be
those of 1955." Only 7%

reported

with sales of $16,684,320
of

of

have lower
.

$20,301,962

share, for the

a

Seven

greater than

as

company

,

into jnew

move

That prediction is based
on
an
industry-wide survey > by^
"Steel," the national metalworking weekly, covering managers of
7,600 metalworking plants.
•
'
*
".yR'V-

military and

field.

For the four months ended Oct.
■»

This Week at 96.4% of Capacity:
st^ Tridr^ry,-v^fietalworking production and sales

the

"high ground in* 1956. Gross sales by the metal-.1
working industries will soar to $138,000,000,000, an 8% gain overrecord 1955 sales of $128,000,000,000.
v^ ^
^

executed.

the present

Output'SeiiJigher

In

pro¬

rose

was

.

Steel

•

documents

This

vember.

subject "to
further negotiations and no agree¬
are

New York City
sharply and totalled $55,764,815 in No¬
up 26.5% over October's $44,087,975, and 23.4%
than the $45,195,814 for November 1954. ;
V;-.:.
*1

building valuations

transaction

approximately $3,300,000 and the
assumption of liabilities in ;the
neighborhood of $2,000,000. : The
terms

■

In contrast, with most sections of the country,

expenditure of

an

October

was $428,603,754, a drop of 12.1%.
$487,392,751 in October, and the smallest monthly total since
last January. It was, however, a gain of 0.2% as compared with
$427,879,197 for the same month last year.
: :
^
'

properties of the vendor

contemplated

in.

from

determined by negotiation and

as

level

year-ago

including New York last month

it will be at the fair value of the
assets and

the

Building permit values in November fell moderately below
volume, but held about even with November a year:
ago, Dun & Bradstreet, Inc., states. The aggregate for 217 cities

television

and

above

were

The sharpest rise, 50%, occurred in the West North
States,'.principally Minnesota, Missouri and Kansas. Only

the East South Central and New England states had fewer failures
than a year agd.

The company has been negoti¬
ating for the purchase of all the
and

failures

regions.

Central

other company.

assets and business of

•

.

annual rate of 46 for each 10,000 enter-)

an

motive group was the heaviest in the last 20 months.

mer,

E. Gar-

the

liabilities

Companies failed at

of

Indulgence of

to 945

..

a

Co.

Webber Simpson Adds

3%

rose

They exceeded last year's toll by

general funds to augment working
capital and to provide for expan¬
of
operations necessitating

Associated

(Special to The Financial Chronicle)

heaviest

sharply to $42,783,000,

sion

an

It points out that should there be

in six months.

the

since March 1954 and exceeded

to

thereafter.

year

and net income

"Letter" adds that "before

failures in November

were

The

basis

plus
shares- of
par

interest, 1,800

compares

unbalanced
gives
specific

budget

with

redeem

preferred

net

The

and

Index.
The index puts failures on an annuaL
adjusted for seasonal variations. This failure rate,:
rising for three consecutive months, was the most severe since
November 1954, but it was well below the 1940 rate of 60.

sinking fund

"Letter" says:

and public deficits has

consistent

a

prices and levy an inflation tax' income of
$906,833, equal to $1.14
on
the savings of the people."
per share of common stock.
This
Question

cars,

prises listed in the Dun & Bradstreet Reference Book, according:

to

31,

Tax

both

a

1,025 failures occurred.

The company is required to

augment

The

for

are as

total
74,953 trucks, or 452,311
countries being 8,318,220 cars;
or

1973.

rowing and spending will simply
on

total

1955

considerably the comparable yearago total. Most of the rise occurred in the large failures, involv¬
ing losses of $100,000 or more.
>
K

commercial

pressures

Business

1%

before Dec. 31,1957 the price

supplies—and surplus sav¬
ings—were going to waste. As it
is, more Federal Government bor¬
upward

grand

of

count

decreasing by 25 cents during each
two year period thereafter until it
ultimately reaches the par value
of $50, if redeemed after Dec.
31,

take

be sensible if labor and steel and

The

most numerous

part, at the option of the company
a
price, plus accrued interest,
of $52.25 per share, if redeemed

part of its business consists of the

attitude

week

1,322,752 trucks, or 9,640,972 units.

at

manufacture and sale of television

relaxed

more

Industry

final

and 18,134 trucks.

cars

9,188,661 units; Canada—377,358

units.

common

toward

chronically

Federal

of

appropriations. Helping the States
enlarge road and school programs

a

Wick

Continuing, the

shares

1954's

of

"Ward's" production estimates for the entire year
United States 7,940,862 cars, 1,247,799 trucks,

of

stock for each share of preferred.
It is redeemable, in whole or in

to- the

ex¬

peace-time

1V\

124,250

or

short

conversion

Responsibility of the agreement, and approval by the
individual, of private enterprise, company's board of directors.
rest

and asked the assembled
econo¬
mists for aid 'in
CHICAGO, 111.—Robert E. Wick
resolving doubts;
about our ability to
combine a is now with Lamson Bros. & Co.,
stable dollar with a
141
West
Jackson

economy'."

of

16.6%

follows:

con¬

The company will add the pro¬
ceeds of the sale of the stock to

our

problem of
control that pro¬

Federal

dent of the Federal
Reserve Bank
of New York, referred
to 'the siren
song of gradual modest inflation'

panding

rate

initial

an

is

tempo

142,384 units,

stock of the

common

at

ex¬

We

number

Government

Associations, Allan Sproul, Presi¬

growing,

vertible into
company

deposit funds into

agen¬

of

preferred stock is

sufficient

Federal

complication

bility. We also have

money

speech Dec. 29 before the

annual

in

proliferation

a

Government

willingness

of

new

the

put money

on

"We may have a little too much
inflation virus in our blood. We
have
been
too 'tolerant
of - the
build-up of debt* It is tnfe that

The

travagance in government because

ment

Inflation

increased—excused

at

car-truck

convertible preferred
$50, to the public today
a price of $51 per share.

par

(Jan. 5) at

not

giving Government establishment has not
grown just too big. for correlated

wrong,

heed to unhealthy
symptoms and
the rules we must follow to
pro¬
tect solvency,and
The

—

had

taxes

stock,

it

defense

We

whose

offering 120,000 shares
Magnavox Company 4.75%

accrued

Federal

only

wrong or

been

by accident,

favor.

scientious attention to
things that
are

yet

people

years ago

those

have had fortuitous

our

But

•

"Twenty

had

of

adjusted monetary and fiscal poli¬
cies to what seemed
to
be, on
examination, the needs of the
prosper

purse.

The State of Trade and

asso¬

are

cumulative

on or

the

upon

renomination
and
reelection.
Business optimism was founded in
part on the assumption that we

ditional

Reynolds & Co. Inc. and

functions

wage settlements, and the accel¬
eration of home-building and car-

.Thursday, January 5, 195

..

on

For

annual

the

production
tion

is

was

not

capacity

like

week

a

2,41$,000 tons.

placed

at

comparable

of

125,828,310 tons

month

the

as

rate

of
was

Jan.

1,

100.1%

A year ago the actual weekly

1,960,000 tons
because

ago

1955.
and

produc-_

or.81.2%; ;The operating rate""

capacity

>was dower

than capacity

in

Number 5496

olume 183

1955.

.;.

The Commercial and Financial Chronicle

The percentage figures for

of 124,330,410 tons as of Jan.

1954

are

1, 1954.

-

based

annual capacity

on

'

*

:

The weakness in whea^ was influenced to some extent by
latest official forecast o| 938,159,000 bushels for all wheat *\

*

The

-

~

this

produced

Output Recedes From Ail-Time High Record?*

.Electric

In Christmas
The

amount

electric

of

Holiday Week '
distributed

energy

the

by

Corn

decreased 863,000,000 kwh. below that of

1,326,000,000 kwh. or 14.1% above
comparable 1954 week and 2,553,000,000 kwh. over the like
in

week

1953.

23,000,000

values

Daily

sales

average

the week before

totaled 31,200,000

Chairman of the group for the en-?

suing

Walter W. Niebling,
Lynch, Pierce, Fenner
& Beane, was elected Treasurer of

ago.

a year

Preceding Period

k

Leadings of revenue freight for the week ended Dec. 24, 1955,
decreased 42,233 cars or 5.9% below the
ciation of American Railroads reports.

preceding week, the Asso¬

low level during
Limited price changes offered little inducement to
buyers and takings were confined largely to trade in need of early
replenishment. The domestic raw sugar market held steady in
rather dull trading. Trading in cocoa was brisk at the week-end.

the group

The

Messrs.

672,355
19.8% above the corresponding

increase of 111,160 cars, or

which included the Christmas Holiday, and an

and Robert Boytano, of
Glore, Forgan & Co., was elected
Secretary. The Toppers 1956 Com-

a very

fairs

crop

prices were mostly steady in moderately active trad¬

"./■

of

191,377 cars, or 39.8% above the corresponding week in 1953,
which also included the Christmas Holiday.

The first estimate of the
set

at

12,000,000

bags by

the

Brazil

•'

Brazil coffee

1956-57

Rural

crop

has been

according to

Society,

recent advices to the "Journal of Commerce."

Automotive

S.

Last Week

Output Declined 30.1%

The

Under the Curtailed Christmas Week Pace

an estimated 104,982 cars,
(revised) in the previous week. The past
v/eek's production total of cars and trucks amounted to 118,797
units, or a decrease of 51,187 units below the preceding week's
output, states "Ward's."

week the

industry assembled

/Last week's

the

week and
1

consequent tightening of free

.

The

totaled

In

a year ago.

placed at 2,382 cars and 481
built 6,100 cars

industrial ^failures-dipped

174

to

In

There
ended

Failures
143 frcm

/v V■

;V;.

y;V" // %:.■

liabilities of $5,000

involving

or

more

150 but continued above the 127 of last year.

:

\ <>■■■

.v

declined to
>No change

appeared among small failures with liabilities under $5,000, which
held

the

of

compared with 25 a year ago. Nineteen
failing concerns had liabilities in excess of $100,000 as

steady at 31

and

against 18 in the previous week.

v/ v;/:\

V4, Wholesaling,;; construction and commercial services accounted
for the dip during the week, with the

toll among wholesalers down
to 15 from 25, among construction /contractors to 27 from 34 and
among service establishments to 11 from 15.: In contrast, retailing
failures edged to 71 from 70 and manufacturing climbed 4o 50
from .37; - More businesses failed than a year ago in all lines

retailing where

except wholesaling and
1954

recorded.

was

slight downturn from

/./

The week's decline

\

a

was

"•

I

''•'•V.'.-.

concentrated in four regions, including

the Middle Atlantic States where the toll fell to 52 from

in most regions. The only mild dips, from 1954
Middle Atlantic and Pacific States.
during the week from 16 in the

preceding week, but did not reach the 26 in the comparable week
last year.*
>

with $6.78

a year ago, or a

Commodities

moving

drop of 11.9%.

higher*in

4

The index represents the sum total
raw

foodstuffs

and

meats

in

the

Shoppers

Wholesale

a

& Bradstreet,

Inc., moved in

a narrow

below the level of the week before.
Dec.

27,

as

compared with 280.58

corresponding date last

a

The index closed at 288.47

week earlier

anil

279.82

on

on

Trading in leading grain markets during the pre-holiday week
was

very

dull with price changes small.




institu¬

and

/With Daniel F. Rice

t

*

,

(Special to The Financial Chronicle)

MIAMI

BEACH, Fla.

—

*

Harry

.

est in fresh
>

&

Co.

and

Bache

&

Co.

,,

„

*poabs aq pjnoo Xubui sb domj

r-qiBap ssajpaau b si qjbap iaa
wllb3

!

pjiq}xi9a9 IBqi

si 'sn jpj

fciopop mo 4pbj oi2bji aqj,

.

moderately at the end of the week.

Inter¬

produce and canned goods decreased most noticeably..

The call

,

ton

reported.

was

for fresh

meat and

poultry

was

sustained

at high

level, volume in butter and cheese equalled that of last year,

Wholesale

ordering was maintained at a high

level

week

a

and the total dollar volume was slightly above the level of the

ago,

similar week last year.

'

Department store sales on a cQuntry-wide basis as taken from
Board's index for the week ended Dec. 24,*

In

preceding week, Dec. 17, 1955, an increase of 6% was reported.
ended

the four weeks

For

For the

recorded.

7%

was

Dec. 24,

1955,

an

increase of 8%

was

period Jan. 1, 1955 to Dec. 24, 1955, a gain of

registered above that of 1954.
York

City last week continued

to show gains with the increase for the

period estimated by store

Retail

trade

executives

volume

about

at

8%.

in

New

fact

The

that

the

week

included

in

the

heavier

According
ment

Federal. Reserve

the

store sales in New York

Board's

index,

depart¬

City for the weekly period ended

1955, increased 17% above that of the like period last

24,*

In the preceding week, Dec. 17, 1955, an increase of 2% was
For the four weeks ending

index

recorded

a

Dec. 24,

1955,

an

increase

For the period Jan. 1, 1955 to Dec. 24, 1955,
rise of 2%

from that of the corresponding

period of 1954.
*

year

The

cans

people

cured of

are

cancer

More and

more

going to their

doctors in time...To learn
how

to

head off

cancer,

the American Cancer
or

of
shown for this week reflect in part the fact that this
Sunday and the week therefore included six days of
g
as
compared with five days last year when

are

every year.

write to "Cancer" in

your

call

Society
care

local Post Office.

large increases

Christmas

fell

i

Christmas

LET'S LOOK AT THE BRIGHTER SIDE

Many thousands of Ameri¬

volume.

to

of 4% was registered.
the

a

factor

the

J

private

of America.

.

Food sales declined

recorded.

index, compiled by Dun
range last week at slightly

year.

coverings

White dress shirts, neckwear^ and sweaters were
popular men's furnishings. Interest in women's cloth coats and
suits dropped slightly,, but volume in fur stoles and scarfs was at
.•a higher level than that pf the previous week.
Sales of children's
outer clothing mounted considerably.
•
*
'

year.

The daily wholesale commodity price

of

and The Board Investment Trust

especially interested in women's accessories

were

the past week.

Dec.

1

#

number

rose

Saturday as against a Monday last year was an important

|
'
,
%
4.
Commodity Price Index Moved Within
Narrow Range the Past Week
#

imported glassware and china

decrease in the sales of floor

a

%

.

securities.

tional accoumts including three
mutual funds: The Colonial Fund/
Inc., Gas Industries Fund, Inc.,

lighting fixtures, but interest in major*appliances dropped notice¬
ably. Volume in linens and draperies expanded somewhat, while "

%

of the price per pound of
general use) and its chief
pricey at the whole¬

gas

Colonial Management Associates
acts as investment advisor for a

Levin has become connected with
mod- V Daniel F. Rice and Company, 317
-erately last week, while., volume in cutlery and silverware was.
Seventy-first Street,
Mr. Levin
..high and steady. There was an increased call for lamps and
was previously with J. R. Willis-

function is to show the general trend of food

sale level.

ing in oil and

■

,

Consumer interest in

'i

31

period

.

the

the past week were corn,
and lambsr while flour,

cottonseed oil, eggs, steers, hogs
wheat, butter and cocoa were lower."

lard,

the

1955, increased 21% above that of the like period of last year.

Marking the first advance in six weeks, the)-wholesale food
price index, compiled by Dun & Bradstreet, Inc., rose lc the past
week to stand at $5.97 on December 27. Last week's level at $5.96
was the lowest in five and a half years.
The current index com¬
pares

in

merchandise^ with prfncipalL, gains in* high-priced toysgifts.
W.'-- / :
>
*
' - ' ^

the Federal Reserve

Wholesale Food Price Index Makes First Advance
In Six Weeks

sales

tracje in the Week was 3 tp
7% higher than a year ago, according'to estimates by Dun &
Bradstreet, Inc.- Regional estimates varied from the comparable
.1954 levels by the following percentagesrNew" England +lv"to
-j-5; East, Middle West and Northwest -f-3 to +7; South and South
west -f 5 to +9 and Pacific Coast
^j-4 to + 8%.
4
'
'

i

f

retail

joined the investment

staff of Colonial Management As¬
sociates in June, 1951, specializ¬

The total dollar volume of retail

last year's level

to 21

*

Automobile dealers reported a slight rise In the sales <rf new
while interest in used models dropped somewhat.

occurred in New England, the
rose

in

industrial

of

1

Mr. Noon

<

Seasonal'Decline in Past Week

decline

analyst

an

as

securities.

cars,

J;

Canadian failures

seasonal

a

ing

shopping noticeably exceeded that of the corresponding week;
increases were reported in sales of ex¬

.* v
£

47. On the other hand, increases
prevailed -in five regions, lifting South Atlantic failures to 20
from 7, East North Central to 24 from 22, New England to 10
from 8 and the Mountain States to 11 from 5;v Mortality exceeded

'

was

Colonial

Mr. Crocker has been associated

i' "

A
a

as

with the firm since 1948, specialize

year ago.

"

and household

76, and

the Pacific States, off to 42 from

'

earlier.

Wednesday of last week.-However, last-minute Christ--4

on

pensive

the

Despite

week Of 1939. v/''

in

last year. * Considerable

this- uptrend- from the two previous years,
failures remained 8% below the prewar level of 190 in the similar
1853.

a

W.

Noon, Jr. have
general partners
Management Associ¬
ates, investment advisory firm.

season

year

a

Theodore

been admitted

week previous and less

a

week

*

holiday-shortened week ended Dee^29 from 181 in the preceding
week, Dun~& Bradstreet, Inc., reports. However, the toll exceeded
the 152 and 156 which occurred in the comparable weeks of 1954
and

5% more than

same

v

Trade Volume Reflected

Business Failures Dip in .Holiday-Shortened Week
and

about

or

this

mid-December

to

ginned

half the volume in the

mas

V-' f Commercial

13,704,000 bales,

numerous.

"788 trucks.

.

cotton

-

af-v

BOSTON, Mass.—Julian Crocker
and

season.

Foreign in¬
quiries relative to the special cotton export program continued

1,1-66 trucks, and for the comparable 1954 week, 5,264 cars and
-'J/ .-■'.
-/V.

and

of

162,500 bales, down sharply from 211,500
than

previous week Dominion plants

the

volume

supplies later in the

Sales in the 14 spot markets the past week were reported at

reported there were 13,815 trucks made
This compared with 19,103 in the previous

Canadian output last week was

trucks.

Entries

season

output dropped below that of the

States.

18,134

were

stock.

social

Colonial Management
Names 2 New Partners

during the
458,300 bales, bringing total entries for
loan

government

through that date to 4,850,000 bales, with indications
pointing to ultimate impoundings of over 6,000,000 bales and a,

Last week the agency

in the United

the

week ended Dec. 16

previous
week by 45,899 cars, while truck output declined by 5,288 vehicles
during the week. In the corresponding week last year 124,250
cars and 18,134 trucks were assembled.
car

into

movement

compared with 150,881

'<

spring's pig

next

Spot cotjton prices ended fractionally higher after moving
irregularly in a narrow range. The market continued to be sus¬
tained by domestic and foreign price fixations and the heavy

1955, according to "Ward's Automotive reports," declined

30.1% below the Christmas Week pace.
Last

estimate of

at 56,000,000 head, was much larger than expected, and not
much below last spring's level.
crop

Output in the automotive industry for the latest week ended
Dec. 30,

Agriculture Department's

handles

the

David

and

about 20,000 tons more than the trade had expected.
Coffee

of

group,
comprises
Faath,-Niebling, Boytano
G. Coogan, of Byrne
and Phelps, Inc.; Robert E. Hamil¬
ton, of Laidlaw & Co.; John P.
Keyes, of Lee Higginson Corpora-?
tion; William M. Martin, of Bache
& Co.; Alan Rice, of Bear, Stearns
& Co.; Charles V. Smith of Clark,
Dodge & Co.; George Taylor, of
Halsey, Stuart & Co., Inc.; George
H. Wilder, of Smith, Barney & Co.,
and Terence P. M. Young, of The
First National Bank of Chicago.

was

ing.

increase

mittee, which

prompted by news that the Gold Coast main
estimate was officially announced at 220,000 tons, or

activity

cocoa
:

Leadings for the week ended Dec. 24, 1955, totaled

U.

year.

of. Merrill

bushels, against 38,000,000

and'43,200,000 bushels

F.

Reilly, of Lehman
Brothers,
retiring Chairman of
"Toppers," organization of munic-)
ipal bond men, announced the
election of Harry W. Faath, Jr. of
Braun, Bosworth & Co., Inc. as

the past week.

Loadings in Latest Week Dropped 5.9% Under

1954 week

New Officers
James

a

-

"

cars, an

"Toppers" Elect

the

paucity of
The final 1955 estimate placing

firmer reflecting

to

Bookings of all types of flour held at

Car

than

more

t

steady

were

bushels

the

the previous week; it increased
the

almost

or

offerings and fairly good demand.
corn crop at 3,184,836,000
bushels, showedTittle change from
the previous estimate and compared with 3,010,248,000 bushels
produced last year. Soybean prices were stronger with some buy¬
ing based on export clearances two weeks ago of more than
5,000,000 bushels. Purchases of grain and soybean futures on the
iCr.icago Board of Trade in the same period showed a decline.

electric

power

This week's output

year,

.previous government estimate.

*

industry for the week ended Saturday, Dec. 31,
1955, was estimated at 10,751,000,000 kwh., a decline from the alltime high, record of 11,614,000,000 kwh. established in the week
ended Dec. 24, 1955, according to the Edison Electric Institute.
light and

35

(91)

fell

on

on

Saturday.

American Cancer

Society

%J®

36

The Commercial and Financial Chronicle

'

(92)

which

be tapped when

can

sary."

Investing in Common

Mutual'Funds

Stocks for Income
C

mutual fund, the

a

*

Booming Economy in 1956
Forecast
by National Securities

primary ob¬

jective of which is to provide an

diversified group
stocks selected be¬

investment in
of

common

a

of their relatively high cur¬
yield and reasonable ex¬
pectance of its continuance with
regard to the risk involved. Pros¬
pectus and other information
may be obtained from your in¬
cause

rent

vestment

dealer

Research
'

Further

duction

in

national

income in

and

recently

Securities

or:

1956

by

were

"Prospective

in

increases

the

demand for goods and services by

Established 1930

business and

consumers,

5, New York

govern¬

ment, and an enlarged productive

capacity

to

point

a

meet
this
demand,
further expansion of
national product in 1956,"

to

gross

the

declared.

study

re¬

Wholesale

inc.
FUND, INC.

STOCK

indexes

are

stable

SELECT

higher

average

em¬

likely to be bolstered by tax

are

reductions.
with

these

Couple
continued

a

growth

factors

substantial

in

population, and there
is
provided the background for
large consumer outlays and a sus¬

Prospectuses upon request from the national
distributor and investment managers

tained

demand

for

housing,

the

study stated.

SERVICES, INC.

DIVERSIFIED

price

consumer

ployment at steadily rising wage
rates should
produce real gains
in purchasing power, gains which

LTD.

Add to this

869 Investors Bldg., 8th and Marquette,

that

Minneapolis 2, Minnesota

state

must

background the fact

and

local

provide

for

governments

the

increasing
population with accelerated
spending for
schools, highways
and other public facilities, while
business
for

will

tories

*

to

enable

j

ected

the

securities

for

possible

Gli"

*

meet
and

the
gov¬

basis

of

its

analysis of

factors influencing the
National Securities &
Corporation then pre¬
that "* the
gross
national
for

product
new

1956

of

peak

would

$406

reach

billion.

ome

obiecliveincome
large anlNCUm^
risk

was

gain

a

$360.5

1954 and

the

«•»»•<>»«

itainable

billion

recorded

than 6%

more

previous

of almost 8%

all

time

above

high

of

The

American

and
on

each

available

from

prospectus

fund

is

your

investment

its

rebounding

summer

late

200 Berkeley Str.eet

N

Boston, Mass.

in

*

growth

vigorously

of

and

-

1953

1954, it

Production,
,

for

by

from

a

minor reversal that started in the

dealer.

The Parker Corporation
,,

capacity

.

and
was

lasted

until

pointed

construction,

out.

trade

employment, and the personal

income

they

generate,

notion

the

that

in 19o5 point to a corrective
dip in the period ahead, the study
omy

said two

elements in the pic¬

new

ture suggest

further gains in 1956.

"Important
for
to

of

sources

goods and services
be less responsive

demand

now appear

general

to

have

have

their

individual

own

cycles, enabling them to

stabilizing

offsets

growing

all

a

economic

on

vides

ing

cisions

"Thus,
tivities

serve

as

the

of

some

ac¬

that

other

activities, such
commercial and

dustrial,

in¬

as

public

construction
and
the
output of
producers' durable equipment, are
being stepped up to expand ag¬
gregate production for a growing

population.
state

Spending by Federal,
local

and

extent

governments

to

be

deliberately
adapted to contra-cyclical objec¬
some

can

tives, although for next year some
increase
in
total
government
spending

inevitable reof employ¬

appears

gardlpss

the

of

level

ment."

'the

without
revise

to

investment
reference
We

see

to
no

views

our

de¬
an

rea¬

the

of

outlook

industries,

all

staff.

for

the

prepared

tional

National

and

sponsors

Securities

the

Series

of

Na¬
seven

mutual funds with assets of more

than

million.

$260

expected
lay before Congress in Janu¬
ary.
To keep our domestic econ¬
omy strong, it declared, the Pres¬
to

will

probably ask that the
flexible price support system for
farm
products be supplemented
by measures for surplus disposal
ing

second

element

new

in

economic

exports; a purcnasto remove market

program

gluts; soil conservation, including
payment for land diverted to grass
or
trees, and aid to low-income
will

He

for

the

public

construction

housing

of

units

per

the next few years.

year

ernment, in the midst of a historymaking prosperity, is "wisely tak¬
ing steps to prevent inflationary

Corporation went on, would per¬
mit tax cuts if they are needed in

their aftermath."

and

the

surplus

storing

boom,

for

energy

ployment," the study said.
etary and fiscal restraints

principal

instruments in

up

release

when needed to maintain full

over

The improved
National

em¬

"Mon¬

1956 to bolster

a

small

taxes

purchasing

outlook

U.

S.

municipal bonds
corporate
bond
pected

develop

in

the economy.

"Families
on

easier

stated,

desiring
than

have

been

purchases,"
"but

constitute

a

they

homes

new

terms

available
their

will

those

now

deferring

the

forecast

undoubtedly

vast potential

market

a

to

hold

for

security

high

and

issues

provide

fairly

securities,

stable.

ex¬

which

Because

expected in 1956, it is antici¬
pated that prices for both medium

and

low

to

considerable degree, the study

"This

nancial

earnings

from

greater

and

the

condition

of

obtain

will

operating

tinuation

of

bursements.

liberal
These

'tors which should

fi¬

strong
most

corporations should permit

a

con¬

dividend
are

S.

U.

dis¬

major fac-

provide

a

sound

base for the maintenance, oJt good
average

study

that if

means

placed all

we

savings in government bonds*
savings banks, mortgages, munic¬

ipal

bonds

dollar-safe
dol¬

other

and

investments, we saved only
buying power."

lars—not

Mr. Kalbach declared that some

people have been able to solve
this
problem
of
matching the
lower

buying power of the dollar

the rising costs of

with

making

investments

living by

in

common

stocks.

period could afford to buy
of

diversification

in

people

all

income

wide

a

stocks,

many

brackets

of

benefits

the

achieved

broad

a

try through purchasing shares of
Fundamental
mutual

lated.

Mr.

level of stock prices, the

prices

of

good

stocks in the nation's
firms

upward

as

re¬

he

common

leading busi¬
moved

industries

and

well.

in

factor

the

is

greatest

investment

any

plan," according to Mr. Kalbach.
funds

"Mutual

offer

three

10

to

times the diversification of the 30

stocks

comprising the Dow-Jones

index.

In

addition," he continued,
fund

"mutual

provided

an

supervision

shareholders

automatic,
of

are

constant

their- investments

managements of the funds."t

by

The speaker recounted

amounted

in
to

that in¬

mutual "fun d

over

and that total investments for the
year

in

to date had already exceeded
billion-dollar' mark.

the

Interest

progressive accumulation plans

continued at
total

a

high level, with

atic investing programs started in
the first nine* months of

concluded.

1955, Mr*

'

:
;

jg

a

mutual

mon

a

diversified list of

quality and income possibilities.
Bend for a free copy of the booklet-prospectus by mailing this advertisement to

CALVIN

Fund, Inc.

American

com¬

stocks selected for their investment

.

Manhattan Bond

investment fund offering
-

~

Business Shares

Diversified Growth Stock Fund, Inc.

>

A Balanced Investment Fund
The

BULLOCK

anced

Established 1894

ONE WALL STREET, NEW YORK 5

Mum.

Address.




Company
between

selected

•

Prospectuses

available

these

mutual

funds

local

investment

on

through

firms,

or:

INCORPORATED

Elizabeth

3,

New

supervises
bonds

for

stability,
selected for growth.

HUGH W. LONG AND COMPANY

Prospectus

t-

Jersey

a
portfolio bal¬
preferred stocks

and

and

common

stocks

upon request

Lord, Akbett & Co.
New York

—

Chicago

—

a

of 84,527 individual system¬

—FT

-Investment in

s

$917. million in

the first nine months of this year;

Kalbach

stated.

Kalbach

While living costs rose,

stated,

ness

other

and

Investors

funds,"

vestments

added.

Corporate

gen¬

series of crises.

our

grade bonds will benefit

efficiencies,

Diversified Investment Fund, Inc.

grade

are

yields

is

support

Fundamental Investors, Inc.

the

safety

record level of corporate profits

a

investors

a

"Diversification

Government

able

should

and

Security Prices

of

follow two

year

has at least doubled during
period,
Mr.
Kalbach
said:

ing

flationary pressures."

the

this

which

in

personal

prices, the study said that prices

Credit

investments in mutual

shares

decades

that

emphasized

speaker

record

fund

an

its effect would be to increase in¬

this op¬

The study added, however, that
slack

in

if it is not needed

ample credit will be made avail¬
if

power.

likely to get

reduction

even

On

Ample

Research

&

election year, we are

the

are

The
the

participation in Americap indus¬

budget situation,

Securities

"Indeed," it added, "this being

The Government "is deliberately

containing

sponsorship of
Securities
Co.,
local investment firm, C. Ellwood
Kalbach, Vice-President of Hugh
W. Long and Company, Inc., of
Elizabeth, N. J., discussed "Mutual
Funds and the Rising Cost of Liv¬
ing."

"Though few people during the

again ask

Congress to
enact an interstate highway pro¬
gram; and he will request author¬
35,000

investors' forum

an

the

Brothers

Keller

farm families.

picture, National
Securities & Research Corporation
pointed out that the Federal Gov¬

excesses

Addressing
held-Ttnder

Emphasizing that the cost of liv¬

hower Administration is

and increased

as
a
way to increase both,
capital and income.

erally have faced

The study also discusses the leg¬
islative program which the Eisen¬

ident

year

offers

Securities

manages

invest¬

this

funds

by the National Securities & Re¬
search

funds

mutual

in

attainment

that

billion-dollar

record

a

ment

of

audience

an

investors

ma¬

leading industrial corporations, 40
leading railroads and 25 leading
utilities, together with detailed
various

of

-told

funds

tual

Boston

out¬

a fie
16-page forecast — in its
ninth consecutive year—estimates
1956 earnings and dividends of 65

analyses

tion's leading

proof that more and more
investors
are
turning to
these

the

that

political situation does not
terially alter the business

ization

the

pro¬

Eisenhower Program

while

sparked the current
boom, such as home building and
automobile production, show signs
of levelling off, there is evidence
that

and

election forecast.
son

This

for one of the na¬
underwriters of mu^j

A spokesman

of agreement

solid foundation for mak¬

a

Capital, Income

parties, there has
area

policy.

business

fluctuations

to

two

tne

been

in other sectors.

again

economy

demonstrated in 1955 its resilience
A

the

To Funds for

study said "While there are
significant differences be¬

tween

eration."

$364.5 billion achieved in 1953.

of Pr'"c'P

Scouting

situation

look."

peak levels attained by the econ¬

its

the

over

in

fig¬

approximately $388 billion,

which

fund whose

lual
.

Fund

of

a

This

would compare with the 1955
ure

Elements

Two

As

many

dicted

and income^

apital

to

it

consumers

economy,
Research

of

g.term

of

the

On

»

fund
of

va

°

its Qutlays

up

ernment.

Establish^ I'25
nulual

step

plant, equipment and inven¬

demands

now

now

and

expected to hold fairly

and

peaks in the year
coming to a close.
new

cyclical influences than they have
been in the past.
Many of them

prices Stable

mutual,

established

National
Corpora¬

Research

&

pro¬

tion in its special year-end study,
"The 1956 Forecast."

Corporation

120 Broodwoy, New York

gains

predicted

Securities &

National

the

By ROBERT R. RICH

Investors Turn

;

political

it affects the national
economy,

as

still

through
National Stock Series

the

Apropos

neces¬

•

■

f

.Thursday, January 5, 1956

..

Atlanta

—

Los Angeles

:
i

Volume 183

Number 5496

The Commercial and Financial Chronicle

...

estate

Farm Outlook

ownership increased from

$56,500,000,000
or

For New Year

set

$91,300,000,000,.
by about 61%. This was off¬
in part by an increase of real
debt

estate

Not

Bright

Looking ahead to 1956, it must
said
in all honesty that the
agricultural picture does not look
,

be

preceptibly brighter, as indications
that cash receipts from farm

are

will show some fur¬
although probably at

marketings

ther decline,
a
lower rate

than

the current

in

according to "Perspective,"

year,

publication of the investment
management department of Calvin
a

Bullock,

which

Ltd.,

investment

administers

of

assets

than

more

$500,000,000.
The

of

effects

farm

further

declining

will

income

by

aggravated

gross

somewhat

be

slightly

to

Another

relatively

of

the

from

uation

the long view, ac¬
"Perspective," is the
continuing decline in farm popu¬

cording
lation.

to

When adjustment is made

this

for

capita
statistics on agricultural income
look
considerably
better
than
they look on an absolute basis.
In addition, the report says, the
factor,

farm

income

been

improved

property taxes per acre, the pub¬

recent

lication

income

says.

is

there

of

seriousness

the

minimize

desire

no

to

the

currently faced by the
of the economy,

problem
farm

segment

there

are

the

also

has

substantially in
by a rising trend of

years

from

non-farm

Department

amounted

to

in

of net income

strictly agricultural

In

summing

this

1954

$5,700,003,000,

equivalent to 48%
from

sources.

Agriculture

of

that

about

sources.

the publication

up,

"Perspective" observes. warned that an early and final
solution of the farm problem is
First of all, it should be noted
that although
net farm income not in prospect, yet saying that
this year will be down about 36%. "we believe that, on the record of
a
from 1947, the years immediately
relatively brief trial, a shift to
following the end of World War a flexible and somewhat lower
II, 1946-48, were quite abnormal level of price supports is a con¬
mention,

from the

standpoint of what may

agricultural profit mar¬
gin. It goes without saying, the
publication points out, that the
war years were equally abnormal.
For the years 1946-48 the parity
ratio averaged
112.6%, reaching
an
all-time peak of 115 in 1947.
As a consequence of this highly
be called

favorable

cost-price structure, net

farm income for 1946-48 averaged

47.5%

of

gross

farm income

(in¬

cluding government payments). In

structive
program
A

step in any long
for agriculture.

continuation

of

range

named

pieces

has

been

Vice-President

and

Sales

it

was

an¬

nounced

b y

sets

has

Dalenz

been

Bullock

acreage

re¬

or

capital

-

since

stocks and 48.1%

10

stocks,

years

price

to

sup¬

was

v

i

n

Common stocks

Cal-

of

London,

investment)

was

Daienz

McG.

John

re¬

served
in the Pacific
during World War II.
He is a
resident of Riverside, Conn., and

comments: "During the rise in the

Dalenz

Mr.

Princeton,

is

Fund

Puritan

number

of

reached

new

'

••

assets

net

,

stocks

and

outstanding

shares

highs in the quarter

ended Oct.

31, 1955, when net as¬
sets totaled $18,424,131, compared
$15,127,358

July 31, 1955,

on

There

Net

Massachusetts Investors Growth
Stock

Fund

its

ended

fiscal

$6.48

asset

value

Oct.

on

share

per

was

1955, compared

31,

compared with $60,073,468 in as¬
7,453,284 shares outstanding

mended

basis in the shares of Diversified

"Perspective"

deposits,

physical

assets,

cash

other worldly

and

bank

goods.

Figures published by the Fed¬
Jan.

1955

total

1,

1946

farm

and

Jan.

fund's 23rd
Total

assets

the

to

report.

$77,092,shares
out¬

were

8.258,316,

$163,100,by roughly 60%. Real

with

$5.45

18,733 stockholders last

Net

value

asset

Nov.

30,

1955

year.

share

per

$9.34,

was

year-end high.

new

on

also

58

cents

1955

ber

and

19

December

in

1956, the directors of Crown

uary,

Investments, Inc. recom¬
a

to $10.11

with

a

share

cents

equivalent

share and

per

share

per

is

compares

net asset value of $8.06 per
Nov.

on

30,

1954.

All

ing

adjusted

are

three-for-one

effective

was

On
15

Nov.

Oct.

profit with no
loss, or with a
substantially smaller risk of loss.
During this period, the portion of

split

on

per

the

which

share

the 1,000,000 shares then outstanding.
alent to $37.41

The
the

Growth

reports

of Nov. 30, 1955.

in

this

leums,
average

41,000

group,

Canadian

one

Pipelines

This
year

acquisition

recent

Most

earlier.

8.29%

with

compares

from

of

shares

Petro¬

and

premium of

a

dollars

to

Group Securities, inc.

its

not held

over

which

in

investing

bonds, preferred and

common

stocks, with the

proportions "balanced"
in accordance with

man¬

agement's judgment.
a

prospectus

on

request

from your investment dealer

Distributors

Group, Incorporated

63 Wall Street, New York 5, N. Y.




dation

1954,

the

on

Home

Corp.;

Central

and

Corp.;

Florida

Power

Products

South

West

Light

&

Works; Gustin-Bacon Manufactur¬

ing

dollar in international exchange.
"Another
same

working in

influence

direction

has

Aetna

Life

Insurance

Co.; Southland Royalty Co.; War¬
Petroleum

Corp.;

Metals

National

For

the

first

field
and

time

a

companies

ently

active
of

in

atomic

have
of

Aeroquip

Controls

REGULAR ACCOUNT

Company;
time

Value of

Mutual Fund

Number

of

Funds

table

listing port¬

which

the

are

new

pres¬

Amount of Most Recent Fund
4

Other

|

Corporate Stocks Owned Directly
Stock Holdings
Accounts and Savings Bonds
of

Bank

Life Insurance in

Force

ACCUMULATION

J

4.8
$12,940
$3,612
$9,235

nancial.
and

developments in this field.

over

the

was

ob-

as

recent dividend

business

to

and

mes-

and

to

individual

companies

unevenly both-

to

as

fi¬

Typically

management.

logically,

tries

indus¬

will

sh^re
time and a3

to extent. And the 'over-discount¬

ing'

securities prices of good
and with
respect to individual companies—
will continue to provide oppor¬
by

and bad news—generally

tunities

for

values

of

the

and

selection

careful

with

the purpose

which

further

to

of each of the funds

classes/',.

The

report lists

asse&Tfof $99.-

377,781^at the end of fiscal
gain

a

over

a

of

$24,835,788,'or

year ago.

shares

and

holders

were

Total

1955

income

ment

26.2% to
share¬

rose

5,352

new

added.

dividend

shareholders

to

1955,
33.3%

During the year

outstanding

13,001,932

from

were

payments

net

invest¬

$3,865,879

as

$3,269,480 in 1954.
This brings the aggregate of such
compared

to

payments since Group Securities'

inception to $42,545,341.
Distributions

in

1954.

from

net

realized

amounted
to
in 1955, and $497,218
Since
inception these
profits

have aggregated $17,807,322, apart
from more than $9,000,000 (net)
of

profits realized in the process

raising

such

of

cash to redeem the
retiring shareholders,

was
properly
redemptions.

.

-

Family Income in 1954
Value of Mutual

Fund Holdings

Number of Funds Held

Amount Being

Invested Regularly in Plan

,

41.7 yrs.
$6,375
$1,750
1.0

$49

Assets

Corporate Stocks Owned Directly

Value of Corporate
Bank Accounts and

Life Insurance

in

Stock Holdings
Savings Bonds

Force

.OMR

<P
</>

PLAN-HOLDER
Median

research

directly from

—

which,

the years ahead offer- a

over

challenge

• ^

growth

prospects in due

benefiting

v

Value of Corporate

Other

energy

Purchase

Assets

Number of
some

'resting'

a

is

of consoli¬

J"The clearly brilliant possibili¬

ties

$4,920
1-73
$1,055

Holdings—-—

HelcT.L__

and

report

condi¬

markets

allocated to

54.3 yrs.
$6,987

Family Income in 1954

Age
the

this

HOLDER

——

——

Corp.;

Corporation.

also included

folio

Corp.;
&

Lead

Sheraton

been the

more

Median

Age

Number

Corp.;

Canadian

Average Fund Shareholder
THE

in

more

'is both healthy and in order/

sage

$5,163,327

pressure

of

pace

be
the

past.
of

period

a

ahead

served

of

securities

be

—

months
•

which

The

the

likely to

shares

of Nov. 30,

as

in

exports has put mild down¬

ward

1955.

portfolio

American

ren

Incorporated 1933

A mutual fund

tion

securities

of

should

that

reflection

resulting increase in-the
merchandise
imports

"The

.

excess

the

cost of $2.06.

Zenith Radio Corp.; Corning Glass

OF

"The

of

7,

Corp.; Hammond Organ Company;

ADMINISTERED FUND

ex¬

than

spectacular recent

even

Canadian

exchange.

including Aluminum Co. of Amer¬
ica;

1V2 %

an

have expanded in recent
months, while imports, influenced
to some extent
by the require¬
ments of an expanding economy,
have advanced even more rapidly.

acquired at an

Ltd., was

"during

of ports

Fund

Inc.

Securities,

as

on

months ended Nov. 30, the

basis of

14.05% of assets in Canadian com¬

panies

share

report noted that

six

Canadian

for

Assets in Canada

Group

a

Canadian-U. S. exchange rate de¬

series.

Capital

asset value was

proceeds from which increased investable funds,
net asset value
amounted to
$37,419,467, equiv¬

clined

The

net

31,

Aug.

$51,471,330 or $41.18 per share. On
May 31, prior to issuance of an
additional 250,000 shares or stock,

two-for-one

a

1,250,000 shares out¬
Three months earlier,

on

standing.

early

the

although

advance

'normal'

better

30, 1955 the fund had
in

stocks

reflect

to

stock

split

Fund

Income

This amount,

1954,

to

a

share in Decem¬

per

Split Stock

approval by share¬
holders at a special meeting to
be held in the latter part of Jan¬
Subject

together with special distributions

were

THE FULLY

a

this

of

these

securities

offer

to

evi¬

the

should again record
levels of overall busi¬

activity

ness

foreseeable fu¬

other

in

in

are

we

prices

strong

1956

peak

new

sold and the proceeds

seemed

is

of

trend,

opportunity for
greater risk of

on

a year ago.

To

sets,

from $101,500,000,000 to

000,000, or

according

annual

net

with

340

1,

increased

assets

history,

share figures and shares outstand¬

eral Reserve Board, show that be¬
tween

its

of

that, during those 11 years
of parity or better, farmers as a
group
took
on
a
considerable
amount
of fat in
the shape
of

year

Nov.

on

and

says,

we

points which
valued their

instances,

securities

one
of our country's
decades of technological
progress and prosperity.
"As part of this longer term up¬

1949,

which

,

and

with parity at 81.
The fact remains,

since

of

there

that

stages

Oct.

Western

1952, in which
exactly 100, al¬
though
it is obvious that this
statistic is of negligible consola¬
tion to the farmer presently faced

were

and

greatest

has

A year ago our assets invested for stability
31, 1954, the net asset- was increased from 35 % to nearly
value was $3,012,789.
50%."
'-V
:
'
' v
Number of shares outstanding
on

standing and 20,962 stockholders,

was

dence

increase of 21.7%.

an

which

years,
1949
the average

the

such

reinvested
which

to

fully

for
In

,

in

fallen below
100, there have been nine years,
1942-48, 1950-51, in which parity
exceeded
100, as
well as two

earnings
ture.

.i,

He

*

the

business

ma¬

raw

which

stocks

advanced

believed

we

.

*

1956 and beyond,
point that, "Despite
the currently favorable levels or
makes

generally,

place

the

of

owned

(New York), the Innis Arden Golf
Club
and
the
Riverside Yacht
Club.

and

securities

taking

many

member of the Lawyers Club

a

of agricultural per¬
spective, according to the publi¬
cation, that although 1955 will be
the
third
successive
year
in
has

prices 'of
been

annual
report
of
Securities,
Inc.,
leading
fund, in commenting on.

the outlook for

Harry I. Prankard II, President,

with the U. S. Navy

22nd

mutual

con-j
goods

(11.2%); and fuel
terials
(5.9%).

for

parity

and

non-durable

sumers'

30, 1955 with total net
assets,
shares
outstanding
and
stockholders at the highest point

purposes

producers

cently eastern
regional Vice-President.
A member of the class of 1928
at

The

railroad

representing the
(33.4% of total

industries

service

Ltd.,

To Slow Down

bonds, preferred

guaranteed

Group

Bullock,

»

Business Pace

common

stocks.

Managing Di¬
rector

and

of

the

and

favorable to Canadian stocks."

Dec.

on

50.7%

are

investors

45-cent

a

distribution

gain

Investments

1929,

for

and

for

bond

premium

lationship between average stock
prices in the two countries seem3

31, 1954.

nization

the so-called agricul¬
profit margin declined to
37% of gross farm income.
It should also be kept in mind
100,

tural

adjustment

States

exchange

the Canadian export trades."
:
The report added that "the re¬

of

also appears inevitable.
v
is, however, the recurrent totaled
2,843,110 as of Oct. 31,Scudder Fund of Canada Ltd's
danger that, in the months just
1955, an increase of 27.2% over report for the period ended Nov.
ahead, the purely economic as¬ the
July 31, 1955, fiscal year-end 30,1955, issued by Hardwick Stires,
pects of the problem may be ob-. total of
2,234,865. A year ago on President, shows that net assets
scured by the political considera¬
Oct. 31, 1954, there were 552,396 of the fund on Nov. 30 amounted
tions."
k'. v..;
shares outstanding. :
'.VA-i to $50,103,124;-iequal to $40.08 a
ports,

1949, when the parity ratio aver¬
aged

after

each

States

Elimination of the exchange pre¬
mium is, of course, favorable for

$33,289,143,

on

a

member of the

ga

Inc.

equivalent to
the
7,722,803
shares of capital stock, an increase
for the year of 27 cents per share

President.
Mr.

of

$4.31

United

low interest rates which prevailed
in
Canada
earlier
this
year.

Business Shares,

reporting for the fiscal year end¬
ing Nov. 30, 1955 shows net as¬

Hugh Bullock,

of

37

Canada, attributable
the disadvantages to

to

United

At $33 Million
American

into

part

the

Manager of Calvin Bullock, Ltd.,
1
Wall Street, New
York City,

with

strictions and marketing quotas as

companion

Dalenz

McG.

per

situation

estimated

has

V.-P. of Calvin Bullock Shares Assets
John

flow

capital
in

and

The

require

which

factors

favorable

relatively

number of

a

sit¬

agricultural

higher 1956 farm wage rates, agri¬
cultural
machinery
prices,
and

While

favorable

reduced

J. McG. Dalenz Named American Business

from

$5,000,000,000 to
$8,200,000,000, or 64%.
However, ownership of machin¬
ery and
motor vehicles rose by
270% over the period, household
equipment increased by 260% and
holdings of U. S. Savings bonds
rose by 8%.
There was a drop of
2% in deposits and currency.
aspect

(93)

1.3
$1,817
81,825
$12,375

INDq,

gaaga \
fiSn
rWB

O
m
*

38

Continued

from page 14

The SEC and Regulation
l

r

j,i

the prac¬

regulating

and

In addi¬

broker-dealers.

of

tion, the Commission has proposed
certain
stiffer requirements for
the

Regulation A by pro¬

of

use

motional companies.

,

18, 1955, the Commis¬
circulated for comment its

On July
sion

Regulation A revisions,
and on Nov. 15, 1955, public hear¬
ings on the proposals were held
in Washington. Numerous written
proposed

comments were elicited from law¬

broker-dealers, ac¬
countants, newspapers, stock ex¬
changes
and
state
securities
issuers,

yers,

Considerable

administrators.
the

in

terest

ings

proposed new rules
the hear¬

shown during

also

was

in¬

bill of Congressman

the

on

Bennett to abolish the conditional

under Regulation A,
recently held in Den¬

exemption
which

were

Salt Lake City and New York
City.
All of these observations
are being given careful considera¬
tion by the Commission.
ver,

In

deciding whether to adopt the
rule revision, in whole
or in part, or whether the public
interest would be best served by
proposed

requiring promotional companies
to register their securities under
the Securities Act, the Commis¬
sion

first

has

to

the

surmount

hurdle of determining the

permis¬
sible scope of the statutory exemptive provision.
Section 3(b)

of

the Act says, in part, that the
Commission may exempt any class
securities "if

of

enforcement of

it finds

that the

[the registra¬
requirements] with respect to
such securities is not necessary in
.

.

,

tion

the

public interest and for the
protection of investors by reason
of

amount involved

small

the

or

the limited character of the pub¬
lic

offering.

The statute pro¬
vides further that the aggregate
amount of an exempt public of¬
fering shall not exceed $300,000.
.

."

When the amount of the

offering is

small and

of

public
limited

occurring

losses

factors—it

that the

should not be
afforded by

investor

public

economic

from

be argued

can

denied the protection

On

section.

liabilities

civil

the

the design of the

the other hand,

permitting the ex¬
was to facilitate the fi¬
nancing of small businesses by
simplifying the requirements for
offering their securities to the
public. The companies that need
in

Congress
emption

benefits

the

exemption

the

of

recently dispatched a special in¬
spection task force to the Denver-

tified financial reports, will place
additional responsibilities on the

Salt

August to
the middle of November, the task

securities industry for policing it¬
self and will afford increased
pro¬

force completed

tection to

Lake

from

total of 59 in¬

a

Based

firms

three
from

From

area.

spections.

'

by requiring adequate disclosure,
denying or suspending offerings,
investigating and prosecuting
tices

"A"

'

•

protect the public from frontmoney rackets and stock-jobbing
activities in various ways, such as
to

fraud,

The Commercial and Financial Chronicle

\

(94)

its reports,

upon

have

been

doing business by

enjoined
of

reason

insolvency and violations of the
capital rule and revocation pro¬
ceedings have been recommended
to
the
Commission
against two

net

firms.

other

In

addition, several
registrants have applied for with¬
of

drawal

result

their

of

the

inspections

registrations

a

disclosure

by the
and other

capital

of

deficiencies.

as

We have sent

ing letters to

warn¬

of the

many

other

registration most are promo¬
enterprises whose public
offerings of securities are small

been inspected,
citing various deficiencies in their
operations which did not warrant

and of limited character.

tional

Commission

The

is

facing

the

firms which have

promotional companies.

The

task

force

NASD

has

inspected

member

firms

requirements of registra¬

Examination

,

of

the

documents

required to be filed under Regu¬
lation A by the Regional offices
of

the

Commission

has

been

an

spite

of

the

arrangement be¬
the Commission

of

firms, because of the
of new, inexperi¬
registrants and indications

number

enced

of unsound
of

some

has the

financial condition

them.

The

of

Commission

duty to make inspections,

which cannot be delegated to

the

NASD, for the enforcement of its
laws

own

to

investors,

protect

and

the

the

responsibility
compliance with its

Our

in the

men

to

tecting the

public investor is its

broker-dealer inspection program.
and
dealers
registered

with

the

Commission

financial condition of the firm is

ascertained, and the practices as
to pricing, treatment of custom¬

obtain
rules.

own

assist

offering

con¬

action—as

in¬

The

high level of the securities

markets has made it advisable for
the

Commission

to

provide new
safeguards to protect the public
against broker-dealer insolvencies
that

could

be

caused

rule

spectors

make

In

allowing

the

job.

firm

serious

is

by possible
capital

to

called

"haircut" of

pared

with

The

development of small
making the proce¬
raising a limited amount
of capital from the public rela¬
tively simpler and
less
costly
by

than

in

raising large sums.
One
making small financings
less complicated and less expen¬
factor in

sive

was

the

protection

elimination

afforded

liabilities of the
and

the

of

by the civil
directors, experts

underwriters

to

investors.

attracted

Congress

contemplated

conditional
extended

that

exemption
to

the

should

promotional

be

com¬

loss.

A forceful argument

made

not

that

the

public

can

interest

be
is

being best served by making

the exemption available to specu¬
lative classes of securities where
the

public

suffer

lihood

investor

severe

of

losses.

losses




is

liable

If

the

exists

—

to

like¬
even

rapid

has

The

growth

raised

the

of

securities

of

serious

Commission

in

1953

there

On
62

were

June

30,
registered

to

its

vast extension

the

and

Utah

broker-dealer

these

two

creased

in

two

had

85;

population

states

This

later, Colo¬

years

106

alone

had

from

years

increase

in
in¬

90

to

approxi¬

was

mately one-third of the total in¬
in

crease

dealers

the

in

States for

no

of

broker-

entire

Commission regardless of whether
they carry customers' balances or
securities.

Approximately 40% of

the broker-dealers

the
do

Commission
not

engage

in

period
the

from 57

new

the

two

to

background

of

states

130.

registrants

Dur¬
NASD
in¬

Many of
have

had

financial

ex¬

perience and they often contrib¬
uted insufficient
capital to their
businesses.
In

these

order

to

brokers

ascertain
and

whether

dealers

conducting their affairs in
ful

manner,

the

were
a

law¬

Commission

registered with

claim

that

they

in the practice of

extending credit to customers
money

account

of

to

or

securities for

or

customers.

these

ever,

How¬

broker-dealers

owe

money or secu¬
customers in substantial

amounts, the Commission believes
that

their

customers

require and
are entitled to the
protection af¬
forded by the net capital rule.
The Commission is also consid¬

ering the adoption of
would

United 'brokers

these two years.

same

members
creased

number
the

broker-

responsibility.

to
substantially
all
broker-dealers registered with the

rities

Two

now

1

*

Co., 13!

Flagler Street.

regulatory

jurisdiction.
The
Commission is presently conduct¬

George Dickeiy

a survey to ascertain the iden¬
tities of these companies, the na¬

of

their financial

reports

their

and

soliciting proxies.

of the
on

,

with A. M. Kidder &

East

of

ing

in

Cooi

A.nderson

\

MIAMI, Fla.—George T. Hunt i

determine the factual
a

He

with

nually

require
and

with

nancial
certified

the

by

that

registered
to

file

an¬

Commission

reports which

accountants.

rule

a

all

dealers

have

independent

fi¬

been

public

At the present

time,

only broker-dealers who make

a

practice of extending credit to, or
holding securities for, customers
have

been

tified

financials

mission.
rule

in

make it
and

required

The

to

with

file
the

cer¬

Com¬

adoption of this

new

the immediate future, to
mandatory for all brokers

dealers

to

file

annually

cer¬

5

King Merrit
was
formerl;

(Special to The Financial Chponicle)

the

order

Inc.

Howard

—

With A. M. Kidder Co.

thorough, objective study of
reporting and proxy practices

companies affected by the
legislation should first be made

in

with

now

Co., Inc.

George Dickeiy, associated witl
Waddell &

to

The

impact

60

following

insider trading restrictions

•

directors

the

of

heart attack.

a

'

.

sponsorship of their secu¬
rities by brokers and dealers who
also

'

*zr

the

are

Reed, New York Citj

passed away Dec. 23 at the age o

practices

'

_

♦

.

Joins E. F. Hutton

PASADENA, Calif.—Lowell H
Hancock

has

joined

E. F. Hutton &

in

January, should dis¬
whether, in fact, there exist
abuses

the

staff

Shelley, Roberts

DENVER, Colo.—Ira C. Dalton

This period of strenuous activ¬
ity in the securities markets re¬
quires the utmost vigilance of the

Harriette
mett

A.

Parrish

Commission.

staff

of

Shelley,

Congressional

carrying

mandate,

out

the

its

pri¬

A.

Lombardi
have

and

"This was, he

Roberts

&

First National Bank Building.

tionships,

a

life.' There

(Woodrow Wilson) said, 'nothing

social age, a new era of human rela¬

a new

stage-setting for the

new

need for

was

a

new

drama

of

liberation—'for the

emancipation of the generous
energies of the people.' His mis¬
sion

to work for

was

liberation;
justice; to
establish public
policy on the
basis of the welfare of
all, not
to

work

for

the

on

social

welfare

group.
"Let

us

of

a

remember

narrow

the

con¬

text of the times. The last
years
of the 19th
century had seen an

ominous concentration of

wealth,

and

in

power,

economic

a

in

it

political

few hands. And the

Adlai E. Stevenson

system, left to itself,

would not
set

with

reverse

motion.

a

process

Laissez-faire

which it had, in fact,
could

not

cure

what

laissez-faire had helped to start.

"Only
to

the

commanded enough authority
dangerous unbalance, and this was

one agency

redress this

National

Government. It

should use its great
derived from the popular vote—fromT'the
just consent of the governed' to restore equilibrium

powers,

in

the

community and insure that all interests
expansion and enrichment of Ameri¬

shared in the
can

life."—Adlai E. Stevenson.

One leaves Mr. Stevenson's fine

ing whether, after all, it
rather

phrases wonder¬

not Woodrow Wilson
than Franklin Roosevelt who
fathered the
was

New Deal.
But

whatever

Em-

joined

Wilson-Roosevelt-Stevenson!
short of

o

Company, 10 Nortl

Garfield Avenue.

that

In

*

"(Special to The Financial Chp.onicle)

com¬

more

extended

in

had

com¬

has, by a further rule amend¬
ment, effective Dec. 1, 1955, been

broker-dealers in Colorado and 28
Utah.

as

10%ode-

establishes
a
standard
for

sihce
frequently

rado

30%,

former

The coverage of the net
capital

the

public.

Co.,

a

need for such

is

connected

has

endorsed

or

so-

rule

carrying

the

these

of

number

the

the

financial

protect

protected

risks

un¬

dealer

carrying out its responsibilities to

ing the

extreme

vast

a

into

problems for

panies in speculative industries
where, by reason of inherent eco¬
nomic hazards, investors are not
from

other

discovered,

enjoin the

or

This

registrants

191.

The question arises whether the

if

or

are

high volume of financings
promotional companies

business.

courage the

inspection

by small
has

newcomers

business

impaired

the registration

tration, Congress intended to

dures for

the

violations

stock commitments

common

of

prompt action is taken to revoke

conditional exemption from regis¬
en¬

If

&

principles and

Commission

MYERS, Fla.

applicable to broker-dealers

effort

report discloses that the capital of
the

FT.
Minor

The net

disruption

every

unnecessary

Joins King Merritt

(Special to The Financial Chionicle)

are

in¬

E

(Special to The Financial
CanomcLE)

Join

proper

our

Warner

should
be
rectified by the proposed legisla¬

ers

While

—

tion.

ing

The

Colo.

injure the public interest.

market declines.

disclosures to custom¬

DENVER,

junctive or revocation proceedings
—against firms where violations

ers' funds and securities and mak¬

reviewed.

an

serious

sub¬

are

jected to periodic, surprise inspec¬
tions by our investigators.
The

persons

named in the registra¬

or

broad

close

Brokers

fr^e

Rogers

sound¬

tate to recommend

important method
Commission in pro¬

lawful practices.

statement.

its

shareholders

securities field,

records and

false

tion

the

hand, the inspectors do not hesi¬

Another

by the

of

markets.

re¬

rities.
used

securities

Joins Rogers Staff

un¬

be

convenes

en¬

stringent

signing

These

structive suggestions. On the other

our

wor

(Special to The Financial
Chponicle)

or

panies is also being studied. This
analysis, which we plan to com¬
plete by the time the Congress re¬

of

program

thorough

the

750

scribed

component

existence

the

open

holders of

would

recognizing

ture

a

registrants by explaining the use
and purposes of the various pre¬

duction,

against

of

exceeds

million.

has

inspectors, being experienced

the business of the firm, they do a

omissions

$1

public

NASD

similar

making the offering
provided that it makes the find¬
ing that the public investors do
not need the protections afforded
by full registration. The protec¬
tions of full registration include
the. right to recover damages for
or

number

to detect and
prevent fraud in the sale of secu¬

essential
forcement

regu

our

continue

and

$2 mil¬

the Fulbright-Klein
Commission
believes

large

exemption for small
promotional
issues,
instead
of
putting these offerings under reg¬
istration requirements, it does not
intend to adopt revisions to the
Regulation A rules that may be
unduly restrictive on the issuers.

A

introduced

than

more

companies

of

ness

tendant provisions for

conditional

the

of

securities

While

of

the

that

to

quired to comply with the report¬
ing, proxy and insider trad.ng
provisions of the Act.

itations

retain

if

equity

from full registration, with its at¬

to

assets

lion

the

determines

trust

to
contribute ei
investor confidenc
in the expansion cf our
econom

Representatives

bill.

avoid

misleading statements

total

that

mission

ur

or

We

fectively

Fulbright-Klein proposals ap¬
ply to unlisted companies having

designed to avoid frequent revis-

civil liabil¬
ities, is permitted. > If the Com¬

of

will

The

tween NASD and

exemption

also

was

House

lation.

by Congressman Arthur G. Klein.

tor

where

bill

the

not

ditions

or

in

enterprises
by
burdensome

necessary

exchanges

in

tion and prescribe terms and con¬
for

similar

securities

unlisted companies.

the

inventory must be made. This

from the

certain

objectives,

of

issue

to

region which were recently
inspected by the NASD. Duplica¬
tion of inspections was necessary,

carefully studied.

the

national

on

facilitating the financings of small
companies
must
be
balanced
against .the possible loss of inves¬
protection

certain

Securities

Exchange Act ap¬
plicable only to companies listed

in

scribed by the Commission is also

exempt

to

than

extend

stranglin
development
c

economic

Street.

authority

def¬

less

means

to

the

designed
provisions of

exceeds

$300,000—the Commission has the

by statutory

"small"

legitimate

bill

listed

has been tightened to provide that
in computing net capital a 30%
deduction from the market value

inition

the

bright introduced

ings, as where, the violations were
relatively
minor a n d ; resulted
from inexperience.

adequacy
of the firm's procedures in keep¬
ing the books and records pre¬

character—and

During the last session of the
Congress, Senator J. William Fula

e

initiation of disciplinary proceed¬

this

eco¬

through aggressive and strict

forcement of the disclosure an
anti-fraud provisions of the sta
utes without stifling or

public investors.

has joined the staff o
Rogers & Company, 511 Sixteenth

several

The

to

the total amount of debt securities

problem of whether it is in the
public interest, and within the in¬
tent of Congress, to continue to
allow the use of the exemption by
nomic advantage that results from

objective of the Commissi
protect the public investoi

mary

is

Thursday, January 5, 19

....

its origin

it appears certain that

Mr. Stevenson would perpetuate it.

th<
Co.

Volume 183

Number 5496

Commercial and FinancialThe
Chronicle

...

(95)

The

Indications of Current
Business Activity

week
Latest

AMERICAN

IRON

AND

INSTITUTE:

STEEL

operations

steel

uiuitaico

.Jan.

8

.Jan.

8

or

month available.

month ended

or

Previous

Month

Year

Week

Ago

Ago

Week

of capacity).

(percent

following statistical tabulations

latest week

§96.4

*95.7

100.1

*2,309,000

2,416,000

on

81.2

-

3ANK

Equivalent to—
Bteel

42

PETROLEUM

oil

Cruoe

(net tons)

output—dally

to

runs

output

Kerosene

output

Distillate

fuel

Dec. 23

(bbls.)

6,991,600

6,945,800

6,858,800

6,400,950

117,838,000

7,684,000

7,741,000

7,288,000

Dec. 23

27,063,000

24,767,000

2,796,000

27,069,000
2,428,000

26,201,000

Dec. 23

2,396,000

2,782,000

Dec. 23

12,345,000

12,07-7,000

11,844,000

12,179,000

Dec. 23

9,005,000

8,623,000

8,600,000

8,042,000

Dec. 23

161,741,000

160,406,000

155,866,000

154,922,000

_Dec. 23

28,778,000

29,909,000

34,315,000

30,521,000

Dec. 23

117,954,000

126,040,000

145,374,000

113,817,000

Dec. 23

39,500,000

40,935,000

45,045,000

51,072,000

output

Blocks at refineries, bulk terminals, In transit, in
Finished and unfinished gasoline (bbls.) at
,

Kerosene

(bbls.)

Distillate

fuel

Residual

fuel

ASSOCIATION

at

oil

oil

OF

1,960,000

Dec. 23

;

(bbls.)
Residual fuel oil output (bbls.)
.

DEBITS—BOARD

of

November

BUSINESS

(bbls.)

oil

§2,373,000

of

.

stills—daily average
(bbls.)

Gasoline

(bbls.

average

gallons each)_

Crude

in

or,

(in

of quotations,

cases

OF

GOVERNORS

either for the

are

are as

of that dates

Latest

Previous

Month

Month

Year

Ago

OF

SYSTEM—Month

thousands)

.

,

$173,198,000

$175,807,000

$156,843,000

$45,200

►$44,700

$43,200

INSTITUTE:

condensate

ana

Dates shown in first column

THE FEDERAL RESERVE

ingots and castings

AMERICAN

production and other figures for the

cover

that date,

39

(bbls.)

at

(bbls.)

at

AMERICAN

MERCE

NEW

(millions

of

DEPT.

SERIES

dollars):

OF

Month

of

COM-

October

.,

Manufacturing

:____

;

v.

Wholesale
Retail

I

i__

_T

Total

pipe lines—

.

INVENTORIES

12,200

12,000

11,700

23,300

23,200

22,000

*$80,000

$76,900

$80,700

CASH DIVIDENDS—PUBLICLY REPORTF.D BY
U. S. CORPORATIONS — U. S. DEPT. OF
COMMERCE —• Month
of
October
(000's

omitted)

RAILROADS:

a

**

\

•>!•'

T

.

$669,000,000 $1,488,400,000 $613,600,000

'

Revenue

Height

Re/enue

freight received from connections

CIVIL

loaded

ENGINEERING

(number

of

Dec. 24

672,355

641,879

cars)__Dec. 17

670,751

664,474

cars)__

CONSTRUCTION

of

(no.

.

583,520

561,195

662,109

612,803

CIVIL

ENGINEERING

GINEERING

ENGINEERING

—

December

xnL W

Total
!

RECORD:

a-

U.

S.

Private

construction

Public

•

„

construction

construction

1

Sta^te and municipal

COAL

OUTPUT

(U.

S.

BUREAU

ELECTRIC

Electric

AVERAGE

$216,147,000

173,248,000

68,439,000

197,593,000

105,547,000

147,708,000

State

98,619,000

162,495,000

91,080,000

128,118,000

Federal

5,145,000

35,098,000

14,467,000

19,590,000

10,280,000

*10,580,000

9,030,000

7,553,000

Dec. 24

524,0000

580,000

456,000

605,000

Private

OF

Dec. 24

230

255

146

190

,Dec. 31
INDUSTRIAL)

steel

(per

Pig ircn

(per

gross

10,751,000

til,614,000

11,359,000

Dee. 29

174

Dec. 28

5.174c

209

152

.

5.174c

5.174c

4.797c

—Dec. 28

$59.09

$59.09

$59.09

$56.59

Dec. 28

$53.00

$52.17

$47.00

$32.83

(E.

&

i.

M.

Expert
Straits
Lead

tin

(St.

Zinc

,'s,

York)

Louis)

(East St.

MOODY'S
U.

(New

(New York)

Lead

——

at—

44.475c

44.275c

44.100c

31.250c

99.000c

87.125c

15.300c

—Dec. 28

13.000c

13.000c

at

PRICES

S.

—Jan.

3

94.66

—jan.

3

107.09

Estimated

YIELD

I

110.70

114.85

All

109.42

112.37

Durable

106.92

107.44

110.34

Nondurable

---Jan.

3

101.97

101.97

102.63

105.00

Hourly

[,105.34

105.17

105.86

108.70

All

107.44

107.27

107.62

111.25

103.52

108.16

108.88

111.81

—Jan.

3

—?Jan.

3

PAINT

AND

3

3.33

Jan.

3

3.13

,.Jan.

3

3.22

_

.—

'

3

2.90

TRANSACTIONS
DEALERS

2.88

sales

—

ON

N.

Y.

purchases!—T

LIFE

INSURANCE

$2,352,000

571,000

561,000

622,000

579,000

833,000

402,000

3.44

3.40

3.24

$3,710,000

$3,746,000

$3,121,000

$25,540

*$25,182

$23,916

19,693

*19,521

19,252

$45,233

•$44,703

$43,168

26,640

♦27,224

22,489

$30,987,000

$30,559,000

$30,500,000

$2,796,465

$2,788,843

$2,242,137

3.43

3.31

3.32

3.10

3.39

3.27

3.23

3.07

405.6

402.3

414.5

Dec. 24

219,204

229,795

227,809

182,895

iDec. 24

286,600

279,120

239,060

."Dec, 24

lQly*~
495,46.7
[

296,461

,

102

95

90

586,726

542,397

292,891

107.14

107.17

106.78

•

■;;.

■

|

107.15

OF

LIFE

1,165,095

————

.

-.—-Dec. 10

$62,678,227

iDec. 10

1,081,587

(customers' sales)—
total sales

1,022,356

1,412,931

$62,405,915

$58,694,698

$67,572,730

,1,037,134

807,386

1,492,485

.

319,360

199,230

468,123

-Dec. 10

319,360

199,230

468422

—Dec. 10

413,410

444,480

419,490

387,73C

—

dealers—

-

1

ON

THE

N, ■ ¥, STOCK'.

ROUND-I-OT STOCK TRANSACTIONS)OF MEMBERS (SHARES) :

sales—

" J

*

L.„„ '/■

-wDec. 10

sales

TRANSACTIONS

FOR

ACCOUNT

OF

13,769,600

-

443,030

796,230

9,774,320

18,464,010

13,278,650

10,217,350

19,260,240

MEM»._

NEW

IN

of

CIRCULATION—TREASURY DEPT.

Nov.

YORK

30

purchases

1,699,450

^-Dec. 10

233,750

Credit

Cash

,

2,216,840

1,636,070

1,117,710

232,210

206,980

397,52C
1,807.25C

Market

•—•

—

Member

PERSONAL

sales

personal

Wage

LABOR

—

(1947-49

=

U.

S.

DEPT.

other than

204,649,675

192,781,695

105,500,618

106,109,809

160,985,783
109,139,204

106,136

126,519

165,563

2,394,562

2,326,237

1,532,373

$309.6

•$307.9

$288.4

213.6

♦212.4

196.8

92.9

*92.2

56.7

•56.4

52.7

28.1

♦28.0

26.5

35.8

34.2

Govt, issues--

-

labor

366,430

267,210

568,760

403,810

.400,350

296,510

609.36C

--Dec. 10
—Dec. 10

894,120

733,077

504,040

743,23:

127,450

119,960

88,800

146,000

.^jETec. 10

816,227

635,888

490,463

755,05

Commercial

755,848

579,263

901,05

Cotton

943,677

•

Total
Total

tiansfer

PRICES

farm and foods

All

farm

Crops

1,859,350

3,580,61f

Food

325,080

584.12C

Fruit

1,638,763

3,131,067

2,013,843

3,715,187

S.

!

—

FARMERS

DEPT.

OF

Of

—

vegetables,

fresh—

1

crops

—

Livestock and products

Dec. 27

111.4

111.2

111.1

109.6

__Dec. 27

85.2

84.5

83.9

91.8

97.7

97.7

98.2

103.3

69.7

70.4

72.9

84.3

119.5

119.5

119.2

114.8

4.5

7.1

♦7.1

6.7

49.8

49.7

47.5

27.5

27.1

24.9

16.9

•16.9

17.0

294.8

♦293.0

290.8

15:

—

—

5.3

INDEX

grains

Potatoes

5.3

AGRICUL¬
Nov.

grains and hay

Oil-bearing

;

83.4

in¬

—

Tobacco

"

special

—4

386,090
2.349,638

for

products

2,801,247

2,735,728

BY

RECEIVED

384,700

2,532,607

35.9

payments

NUMBER —U.

2,998,950

—Dec. 27
Dec. 27

—r_

TURE—1910-1914—100—As

Dec. 10

2,917,307

,,

nonagricultural income

Dec. 10

Dec. 10

total

Personal interest income and dividends

Feed,

—Dec. 10

;—

receipts,

income

380,310

'

STATES

Proprietors and rental income

40,600

I

UNITED

COMMERCE)—Month

—

620,540

—Dec. 27

Meats

commodities

Other

225

230

242

224

224

243

231

223

226

274

278

281

164

167

199

220

220

239

193

188

210

228

227

277

143

130

438

443

438

225

236

241

184

267

264

266

216

240

261

195

195

159

219

222

287

Exports

,395,100

*$1,248,900

$1,265,000

Imports

,034,000

945,100

763,300

Dairy

foods

THE

IN

OF

contribution

employees

29,300

_

All

972,323

surance

33,920

2,204.77C

100):

products

Processed

920,294

—X

23,500

OF

commodities

Farm

876.386

bonds

industries

rr*^0- *0

Commodity Group—
All

338,521

balances-

income

237,600

Total sales
—

39,785

357,459

producing industries
Distributing industries

1,138,070

^Dec. 10

—

SERIES

39,775

346,403

shares

listed

salary,

and

432)100

purchases

NEW

credit

37,780
S._—___

U.

Commodity

1,579,530

Short sales

PRICES,

in

(in billions):

405,380

round-lot transactions for account of members—

WHOLESALE

free

listed

of

INCOME

1,569,820

-"i?

Ehcrt sales

Total

banks

borrowings on other collateral--

.Dec. 10

the floor—

Total purchases

—

customers
in

4

1,347,320

—Dec. 10
—LiDec. 10
LLDec. 10

Ehcrt sales—

transactions initiated off

of

value

debt balances---

net

to

and

Member borrowings on U. S.

1,336,070

the floor—

purchases

—

hand

of customers'

Total

Nov.

carrying margin accounts—

extended

on

of

omitted):

Dec. 10

sales

sales

EXCHANGE—As

customers'

931,090

sales

transactions initiated on

(000's omitted)—

30

STOCK

(000's

Total

Less

1

J

—

Government

registered—"
—Dec. 10

Ehcrt sales

—„

SERIES—

dollars):

Sales

Total

520,830
12,757,820

506.660:'**
13,262,940

SPECIALISTS:..

specialists in stocks in which

-

of

Nondurable

(DEPARTMENT

:

-

sales

sales

NEW

(millions

Durable

of October

——Dec. 1-0
Dec. 10

BEKS, EXCEPT ODD-LOT DEALERS AND

Total

COMMERCE)

October

Inventories—

Service

Total

OF

of

SALES

.

AND

Short sales

Other

October

Total

Market value

—Dec. 10

.

.

STOCK -SALES

10,1

.

Viimhpr of. shares

Other

of

—

Member firms
^

315,970

Other

INSURANCE—Month

MANUFACTURERS' INVENTORIES AND

As

1.157,947

by

Total sales

—

(000's omitted):

MONEY

r

315.970

Total

$2,097,000

$2,560,000

.Dec. 10

Total

1.67

INSTITUTE

Croup

$65,742,603

Other

PURCHASES

Industrial

$42,246,724

Other

1.94

1.72

3.15

$50,486,408

Total

2.04

1.74

.

:

of

2.05

3.45

$53,036,758

Transactions

*

1

3.^9

—.Dec. 10

Total

sf_'_

goods

3.31

«•'•••• _*.Dec. 10

dealers—
v. Number of shares—Total sales.

ROUND-LOT

$1.83

3.34

1,482,354

Other

$1.91

3.63

4,830

ACCOUNT

r

goods

Nondurable

39.5

$1.93

.

3.33

802,556

round-lot

I,

manufacturing

Durable

40.8

*40.3

3.63

7,105

FOR

•

40.2

*41.7

40.1

Ordinary

1,030,029

Total

J

:

goods

Earnings—

*41.1

42.0

41.2

goods

3.04

5.402

EXCHANGE

79.15

65.97

2.91

1,076,185

TOTAL ROUND-LOT

*85.07

♦69.32

3.14

Dec. 10

'Sji,. -Other, jsales
Round-jot purchases by

$73.57

86.10

69.77

3.20

Dec. 10

-

•$78.50

U

3.23

3.25

STOCK

other sales

—

___!
:

2.61

Customers'

Short .sales

$79.52

November:

3.31

COMMISSION!

EXCHANGE

(customers'

—-

sales

of

Total

.

value

6,936,000

2.87

Customers' short sales

Round-lot

9,121,000

*7,233,000

ODD-LOT ACCOUNT OF ODD-i

SECURITIES

value

16,057,000

*9,752,000

7,168,000

3.13

405.2

:^.:Dec. 30

Number of orders—Customers'

Dollar

*

INDEX—

PRICE

SPECIALISTS

by dealers

♦16,985,000

9,916,000

3.34

uJan.

Dec. 24

-

FOR

AM)

17,084,000

3.16

.

Jan.
-Jan.

of period—;

REPORTER

DRUG

_______

manufacturing

Month

—7

Odd-let purchases by dealers

'v

3

_^Jun.

-—

AVERAGE =100

Dollar

"

■

Jan.

t-

activity

EXCHANGE

a'i.;

..

ASSOCIATION:

Number of shares

.,

Jan. '3)

142.2

Hours—

(DEPT.

(tons)

Odd-lot

110.52

108.88

—

.

INDEX—

(tons)—:

o!

,

_______

lhanufacturlng

110.15

Jan.
.jviJan.

orders-(tons) 'at end

LO'l

107.44

102.3

*161.1

employees in manufac-

goods
Nondurable goods

107.09

—

PAPERBOARD

Percentage

STOCK

106.92

♦108.7

164.4

Earnings—

109.06

Jan.

Production

1940

All

110.70

__

Group
Group

received

Unfilled

98.48

109.4

AVERAGES:

DAILY

COMMODITY

Weekly

11.500c

3

Group

NATIONAL
Orders

Vi

7,198,000

5,459,000

Average=100)—All

goods

LABOR—Month

14.800c

95.09

94.93

12,657,000

*7,726,000

*5,716,000

EARNINGS AND HOURS—WEEKLY
AVERAGE
ESTIMATE—U.
S.
DEPT.
OF

3

Utilities

Public

of

►13,442,000

7,885,000

5,650,000

"V

good's

3

-

Industrials

.•■:/v

13,017,108

FACTORY

15.000c

-

114,028

Avge.—100)—

manufacturing

Jan.

Bonds.

I

.

number

---Jan.

___

MOODY'S

13.000c

'

corporate—

Railroad

15.500c
15.300c

'

109,960

turing industries—

—Jan.

——

Government

A

15.500c

(1947-49

Durable

—

Aa

Baa

9

500,367

105,055

13,535,000

_

manufacturing _.J

AVERAGES:

DAILY

Group.—_
Group

BOND

Average

109.375c

15.500c

Group

MOODY'S

107.750c

15.300c

Utilities

Public

;

Dec. 28

—

Industrials

•;/

Jec. 28

.—

corporate

Railroad

OIL,

—Dec. 28

—Dec. 23

Aa

u.

29.700c

—.

Aaa

r.

43.225c

at

S. Government Bonds

Average

43.375c

at

Louis)

BOND

:

42.700c

294,380

of

workers)

.

Indexes

Durable
—Dec. 28

614,395

666,704

DEPT.

goods

Nondurable

—

S.

SERIES—Month

(production

manufacturing
Payroll Indexes (1947-49

QUOTATIONS):

refinery at
refinery at—

759,091

404,340

•All

copper—

Domestic

$1,373,486

964,787

771,759

13,703,820

.

PAYROLLS—U.

manufacturing

"

PRICES:

lb.)
ton)

(running bales).

AND

Employment

181

$1,369,127

921,292

(DEPT. OF COMMERCE)—

LABOR—REVISED

All

PRICES

*ieciru;yuc

municipal___

Nondurable goods

Scrap steel (per gross ton)
METAL

and

Durable

9,425,000

&

i

COMPOSITE

Finished

DUN

—

$1,693,051

November:
All

AND

-J.

construction

,As of Dec. 13

.

of

construction

Public

EMPLOYMENT

RESERVE

kwh./

000

(COMMERCIAL

AGE

$278,795,000

260,761,000

Dec. 24

1U0

=

BKaDS'IKEET, INC
IRON

$458,354,000
.

INSTITUTE:

(In

output

FAILURES

103,764,000

EN¬

—

Month

—

construction

COTTON GINNING

INDEX—FEDERAL

SALES

S1&1EM—1U47-49
EDISON

173,000,000

Dec. 29

OF MINES):

coal and lignite (tons)
Pennsylvania anthracite (tons)

STORE

$276,764,000

Dec. 29

__Dec. 29

nitUDDiiJous

DEPARTMENT

Total U. S.

Dec. 29

CONSTRUCTION

NEWS-RECORD

(000's omitted):

•

products

Meat animals

Poultry

and

eggs

Wool

UNITED

EXPORTS

STATES

BUREAU

OF

AND

CENSUS—Month

IMPORTS
of

October

(000s omitted):

crude runs. §Based on new annual capacity of 128,363,090
as against Jan.
1, 1955 basis of 125.828,310 tons. fAll-time recoid.
orders not reported since introduction of Monthly Investment Plan.

♦Revised figure.
of

Jan.

1,

1S56,

tNumber of

([Includes 860.000 barrels of foreign




tons

40

The Commercial and Financial Chronicle..

(96)

.Thursday, January 5, 1956

* INDICATES

Now in

Securities
Aerco Corp.
Dec. 20

held; rights to expire on Feb. 15, 1956. Price—
unit to stockholders; $110 to public. Proceeds
—For corporate purposes. Office—166 Eagle St., Englewood, N. J. Underwriter—None.
per

ArAlgoma Central A Hudson Bay Ry.
Dec. 29 filed

(by bondholders' committee) certificates of
deposit for $3,500,000 first mortgage income debenture
"which

and/or bonds

stock

believed

are

the United States of America."

* Allegheny Manganese &

-

.

.

be

to

—

held

Iron Corp.

Dec. 28 filed 580,000

shares of common stock, of which
530,000 shares are to be offered publicly.
Price—$3 per
share.
Proceeds
For liquidation of liens on mining
properties; for mining equipment and construction of a
laboratory and field office; for construction and equip¬
ment of a plant suitable for the processing of beneficiation of lower grades of manganese ore or Oriskany iron
ore; and for working capital.
Office—Charleston, W. Va.
Underwriter—Mitchell Securities, Inc., Baltimore, Md.
—

,

Allied-Mission Oil,

Oct. 3 (letter of notification) 598,800 shares of common
stock (par one cent). Price—50 cents per share. Proceeds
—For acquisition, exploration, drilling and development
of leases.

Address—P. O. Box 1387, Tulsa, Okla.

Under¬

writer—United Securities Co., same address.

Alpha Plastics Corp.
Nov. 18

(letter of notification) 300,000 shares of class A
10 cents). Price—$1 per share. Proceeds—
$90,000 to redeem the preferred stock; $18,100 to be
payable to stockholders for advances heretofore made
to company; for payment of current obligations, etc.; and
lor working capital.
Office—94-30 166th St., Jamaica,
stock

•

Underwriter

—

J. E.

DesRosiers, Inc., 509 Fifth

Ave., New York 17, N. Y.

9

(letter

of notification)
19,000 shares of nonpreferred stock. Price — At par ($5 per
chare). Proceeds—For working capital and general cor¬
porate purposes. Office—8002 Wisconsin Ave., Bethesda,
Underwriter—G.

J.

Mitchell, Jr.,
York Ave., N.W., Washington, D. C.

Co.,

1420

New

27

tracts to

filed

to

Owner

Con¬

of persons or
corporation having a Legal ownership of a fleet of 30 or
more
rental trailers, each accompanied
by a universal
bumper hitch. Price—Will vary according to actual cost
any person,

group

of

a particular fleet.
Proceeds—To increase number of
trailers available for rent in system. Underwriter—None.

Arizona

Public

Finance

Co.,

Phoenix,

Ariz.

Sept. 16 filed 78,006,081 shares of common stock to be
for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬
writer—None, sales to be directly by the company or by '

offered

salesman of the

•

'J;

■

Underwriter—None.

cent).. Price

—

Uranium Corp.,

construction

program.

Oct.

Industries,

Underwriters—Union

Securities

(letter of notification.) 200,000 shares of com¬
mon stock (par one
cent). Price—$1.50 per share. Pro¬
ceeds—To purchase dies and materials and for
working
capital, etc. Office — 6006 Harvey Wilson Drive, Houst«n, Texas. Underwriter
Benjamin & Co.,

Price—At par

Birdair

(par

10

14

filed

97,144 shares of

stock

common

(par $1)
being offered in exchange for the outstanding
291,431
shares of common stock of
Plywood, Inc. on the basis of

to

N. W.,

•

cents

Overton,

cents)

Co.,

Blair &

Cole

.

in

share.

rate

—

stock (par

addi¬

open

Supermarket

concern.

Under¬

Baruch

Brothers

&

Co., Inc.,

*

•

.

...

Century Acceptance Corp., Kansas City, Mo.
7

filed'

$750,000

of participating

junior

subordi¬

nated sinking fund 6% debentures due Nov. 1, 1970 (with
detachable common stock purchase warrants for a total
of

22,500

of common stock, par $1 per share).
(in units of $500 each). Proceeds—For
working capital, etc. Underwriter—Paul C. Kimball &
Co., Chicago, 111. Offering—Expected in January.

Corp., Salt Lake City, Utah

Sept. 6 (letter of notification) 12,500,000 shares of
assessable

share).

capital

Proceeds

stock.
—

For

Price—At
expenses

par

(one

incident

non¬

cent

to

per

mining

activities.

Utah.

Office—810 Deseret Building, Salt Lake
City,
Underwriter—Utah Securities Co., same

City.

22

(letter of notification)

New York.

Boston

Philadelphia

San Francisco

Private fVires




Pittsburgh

to

all

offices

Chicago

Cleveland

mon

of $4.50 cumulative

stock

(to

an

an

unspecified number

preferred stock and

com¬

aggregate not to exceed $300,000)

be offered in connection with

pensation

Plan.

products.

Underwriter—None.

Proceeds

—

to

Employee Deferred Com¬

For

manufacture

of

paper

on«

Office—Montrose, Colo. Underwriters-

|

•

Office—501 Perpetual

Con*i*ie«*al Copper & Steel
Industries, Inc.

(1/16)
filed

263,771 shares of

be offered for

one

new

1956; for

common stock
(par $2)
subscription by stockholders at rate of

share for each five shares held about Jan.
a

amendment

16,

16-day standby. Price—To be supplied by
(to be not less than $10 per share). Proceeds

—To

increase inventories and receivables required for
expansion of sales and for other general corporate pur¬
poses.
Underwriters—Allen & Co., P. W. Brooks & Co.
Inc. and Auchincloss, Parker &
Redpath, all of NewYork.

Cook

industries, Inc., Dallas, Texas

Aug. 1 (letter of notification) 199,999 shares of common
stock (par $1), of which
107,915 shares
are to be sold
by company and 92,084 shares by a selling stockholder.
Price—$1.50 per share. Proceeds—For general corporate
purposes.

Underwriter—Central Securities

Co., Dallas.

Texas.

Cross-Bow Uranium Corp.

Aug. 29 (letter of notification) 5,000,000 shares of com¬
mon stock.
Price—At par (six cents per
share). Pro¬
ceeds
For mining operations. Office
1026 Kearnj
Bldg., Salt Lake City, Utah. Underwriters—Potter In¬
vestment Co., and Mid-America
Securities, both of Salt
Lake City, Utah.
—

•

Cuba

Nov.

21

Public

by

—

(Republic of)

(1/9-13)

filed

of

Works

$2,000,000
bonds

amendment.

due

Proceeds

Construction Co.

of shares

(par

Bldg., Washington 4, D. C. Underwriters—Mid America
Securities, Inc., Salt Lake City, Utah; and Seaboard
Securities Corp., Washington, D. C.

ic Champion Paper & Fibre Co., Hamilton, Ohio
Dec.

stock

Comet Uranium Corp., Washington, D. C.
Aug. 20 (letter of notification) 700,000 shares of com¬
mon stock (par one
cent). Price—Five cents per share.

100%

Chaffin Uranium

development

purposes.

common

share. Proceeds—For explora¬
expenses and for general corpo¬

per

Denver, Colo,

shares

Price—At

(3/1)

General Investing Corp., New
York; and Shaiman & Co.,

to
common

.

{

Price—40 cents

Dec. 21

27 filed 500,000 shares of capital stock (par $1Canadian). Price—$1.50 per share. Proceeds—For ex¬
ploration of mining properties in Cuba. Office—Toronto,

.

Uranium, Inc.

Proceeds—For mining operations.

Northwest 37th Ave., Miami, Fla.

—

Coiohoma

tion and

units

Proceeds—To

Business

Underwriter

V

cent).

shares.

Canuba Manganese Mines, Ltd.

Canada.

Co.,

Inc., Columbus, Ga.
•

writer—None.

New York.

Engineering Corp.

(letter of notification) 2,575 shares of common
stock.
Price—$10 per share. Proceeds—For new ma¬
chinery, etc. Underwriter—Spencer, Zimmerman &

Nov. 9 filed 2,500,000 shares of

B-Thrifty, Inc., Miami, Fla.

Office—5301

Co., Incorporated, New York.

Nov. 9

(par one cent). Price—10 cents per share. Promining expenses. Office—1154 Bannock St.,
Denver, Colo. Underwriter — Mid-America Securities,
Inc., Salt Lake City, Utah.
,

per

(1/9-13)

19 filed

curred

Nev.

stock

stores.

same address.

for land purchases, for construction of
gas pipe¬
lines and for further drilling. Business—To
develop oil
lands- Office — Corpus
Christi, Texas.
Underwriter —

per

ceeds—For

retail

supply
Ave.,
Underwriter—Emory S. War¬
Connecticut

—

Uranium, Inc., Denver, Colo.

Price—$38

Proceeds—To

Office—1028

500,000 shares of common stock (par $1).
Price
To be supplied by amendment
(expected at
around $7 per share).
Proceeds—To pay off loans in¬

Oct. 28 (letter of notification) 3,000,000 shares of capital

tional

Price—99%.

jyrc.

sold

be

common

City, Utah

:

Coastal States Oil & Gas Co.

Dec.

of one preferred
Price—$102 per unit.
Proceeds—For equipment and working capital. Business
—Lightweight portable structures. Address—c/o Walter
W. Bird, President and Treasurer, 355 No. Forest Road,
Williamsville, N. Y. Underwriter—None.
Bonus

to

20

stock).

subsidiaries.

Washington, D. C.

&

ren

(10 cents per share). Proceeds
Underwriter—James E. Reed

Structures, Inc.

and

Nov,

Corp., Boston, Mass.

common

capital

(letter of notification) 1,400 shares of preferred
(par $100) and 28,000 shares of common stock

share

Houston,

—

Texas.

Nov.

B

.

Oct.

Inc., Houston, Texas

10

Atlas Plywood

;

_

r

Corp. and Smith, Barney & Co., both of New York.
Atlas

/

Three

St., Dover, Del. Underwriter—Mortimer B.
Co., Inc., New York.
>

Sept. 27 (letter of notification) $245,000 of 6% subordi¬
nated debentures due 1975
(with warrants to purchase
2,450 shares of class A common and 490 shares of class

invest¬

(letter of notification) 3,000,000 shares of com¬

mining expenses.
Co., Inc., Reno, Nev.

common

cent).

one

Citizens Credit Corp.,
Washington, D. C.

share.
Proceeds—For exploration and development costs. Office
—206 North Virginia St.,. Reno, Nev. Underwriter—Mid
America Securities, Inc., Salt Lake City, Utah.

stock.

address.

same

Securities, Inc., Denver, Colo.

Oct. 19 (letter of notification) 9,000,000 shares of common

mon

Commerce

Proceeds—For mining expenses, etc.
Office—2630 South
West, Salt Lake City, Utah.
Underwriter—Denver

Big Ridge Uranium Corp., Reno, Nev.

—For

of

Aug. 10 (letter of notification) 7,000,000 shares of capital
stock
(par-one cent).
Price—Three cents per share.

Underwriter—Investment Service Co., Denver, Colo.

Oct. 28

Bank

Underwriter—Crichton

,

Sept. 20 (letter of notification) 1,500,000 shares of non¬
common stock (par 10 cents).
Price—20 cents
per share.
Proceeds—For expenses incident to mining
operations. Office — 441 Thatcher Bldg., Pueblo, Colo.

$25).

(2/1)

(par

assessable

on©

Va.

Cisco Uranium Corp., Salt Lake

Big Chief Uranium Co., Pueblo, Colo.

(par

National

W.

Dec. 23 (letter of notification) 295,000 shares of

South State

I

Business—A registered

Nov. 23 filed 37,000 shares of class A
Dec. 29 filed 75,000 shares of common stock
(par $6.50).
Price—To be supplied by amendment.
Proceeds—Fof

Investment Co.,

Burnside &

92,636 shares of capital stock (par $1)- to
subscription by: stockholders of record
Jan. 20, 1956, at the rate of one new share for each two
shares held.
Price—To be supplied by amendment. Pro¬

stock

Office—505

Charleston,

• Chemical Ventures Syndicate, Ltd.

for

ment company.

capital.

Building,

Price—$1 per share. Proceeds—•
purchase inventory and for work¬
ing capital and general corporate purposes. Office—129

Dec. 30 filed

investment.

ISSUE

2nd

* B. S. F. Co., Birdsboro, Pa. (1/20)
offered

REVISED

ahares of voting common
stock, class B (par 10 cents)
to be offered in units of two class A and one class B
ahare. Price—$5 per unit. Proceeds—For
general work¬

stock

N. Y.

be

ITEMS

To acquire property,

Automatic Tool Corp.

insurance firm.

^Atlantic City Electric Co.

'/•/

\

PREVIOUS

Charleston Parking Service, Inc..
Aug. 1 (letter of notification) 120,000 shares of non¬
voting common stock, class A—(par 50 cents) and 60,000

ing

Sept. 7 (letter of notification) 20,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—To set
up a factory and purchase equipment and machinery for
manufacture and sale of the "grip-lock" driver and
screw.
Office—137 Grand St., New York, N. Y. Under¬
writer—Ellis-Greenberg Co., 1051 Carroll St., Brooklyn,

stock

$3,000,000 of U-Haul Fleet

be offered

(1/9-13)

Dec. 16

^Arcoa, Inc., Portland, Ore.
Dec.

Corp.

i

New York,

Big Ute

cumulative

Md.

Plywood

Proceeds—To increase inventory and to retire subsidiary
indebtedness.
Underwriter—Van Alstynp, Noel & Co.,

American Business Research, Inc.
Dec.

Atlas

debentures due 1975 and $3,000,000 of 5% sinking fund
debentures due 1971. Price—100% of principal amount.

(par

fj. Y.

Statement effective Dec. 19.

ceeds—For

Inc., Tulsa, Okla.

each

owns

Dec. 19 filed $3,000,000 of 5Vz% convertible subordinated

in

-

.

for

presently

80%.

shares

$101

share

three Plywood shares held.
496,680 shares of Plywood, Inc.
stock and desires to acquire at least an additional 133,809
shares in order to bring its holdings of such stock to

(letter of notification)

share of each class of stock for each four class A

one

Atlas

one

Atlas

816 shares of 5% cumu¬
lative participating preferred stock (par $100) and 816
shares of class A common stock (no par) to be offered
to class A stockholders of record Dec. 15, 1955, in units
of

•

ADDITIONS

SINCE

4%

1983.
—

Veterans, Courts and
Price—To be supplied

To

Romenpower Electra

Underwriter—Allen & Co., New York.

it Cumberland Corp., Lexington, Ky.

(1/23-27)

Dec. 30 filed $900,000 of 12-year 5%
sinking fund deben¬
tures due Jan. 15, 1968, and
90,000 shares of common
stock (par 50 cents) to be offered in
units of $500 of
debentures and 50 shares of stock.
Price—To be

by

amendment

build

plant

to

supplied
(about $550 per unit).
Proceeds
To
charcoal brickettes and
chemical

make

Volume 183

Number 5496... The Commercial and Financial Chronicle

byproducts, notably furfural.
R.

Staats

Underwriters

—

Delta Minerals

William

&

Co., Los Angeles, Calif.; Carl M. Loeb,
Rhoades & Co., New York, N. Y., and The Bankers Bond
Co., Louisville, Ky.

if DanCu Chemical Co.r Oklahoma City, Okla.
14,003 shares of 7% noncumulative preferred stock. Price—At par ($1 per share).
Proceeds—For development, improvement and manu¬
facture re. chemical research and exploitation.
Office—
1000 S.

(letter of notification)

McKinley, Oklahoma City, Okla.

Underwriter—

None.

Dec.

filed

16

Price —To

(par $5).

180,000 shares of common stock

be

supplied by amendment. Proceeds

—

stitutional

debt

investors, to be used to retire present funded

and

to

facilities.

production

expand

Office

—

Underwriter—A. G. Becker & Co. Inc., Chi¬

Cicero, 111.
cago, 111.

Dec. 22
stock

Dec.

notification) $235,000 of junior lien
from date of issue without in¬
Price—80% of principal amount.
Proceeds—
(letter of
two

years

loans

bank

Underwriter
,

(1/18)

Orange, N. J.

Business—Various projects,

cooper¬

Underwriter—None.
"

Sept. 19 (letter of notification) 30,000,000 shares of
assessable

and

—

.

)

Eagle Rock Uranium Co., Salt Lake City, Utah

Corp., Oil City, Pa.

debts; and for working
Office—40 National Transit Bldg., Oil City, Pa.
writer—Grover O'Neill & Co., New York.
pay

Mutual Association

ative and otherwise.

(letter of notification) 46,000 shares of common
(par $1). Price—$6.50 per share. Proceeds—To

stock

.

29

West

reduce

Dennis Run

^

(letter of notification) 3,000 shares of Class R
special stock, 1956 series. Price—$10 per share. Proceeds
—To be held in a redemption fund. Office—180 Main
St.,

Nov. 28

share).

common

Proceeds

activities.

stock.

Price—At par

For

—

Office—214

incident to mining
South, Salt Lake City,
State Brokerage, Inc., Laa

expenses
5th

East

Utah.

capital.

Underwriter—Valley
Vegas, Nev.

Under¬

non¬

(one cent per

East Basin Oil & Uranium Co.
Dinosaur Uranium

if Dayton Rubber Co., Dayton, Ohio

1,800 shares of common

(letter of notification)

Proceeds—For

Price—At market.

(par 50 cents).

general corporate
view

13

University Ave., Provo, Utah.
Investment Co., Provo, Utah.

Weber

mortgages and for construction cost. Offiee
—Cherry Hill, near Camden, N. J. Underwriter—Blair
& Co. Incorporated, Philadelphia, Pa.

To¬

gether with $4,750,000 to be received from loan by in¬

North

if E-l

bonds due in

*:

,

Office—223 City and

Del-Valley Corp.
Dec.

Corp., Provo, Utah

41

Aug.-10 (letter of notification) 6,000,000 shares of noc*
assessable capital stock.
Price—At par (five cents per
share).
Proceeds—For mining expenses.
Office—2S0

County Bldg., Casper, Wyo.
Underwriter—The Western Trader & Investor, Salt Lake
City, Utah.

To

(1/10)

Dix Uranium

(letter of notification) 600,000 shares of non¬
assessable common stock (par five cents). Price—50 cents
per share. Proceeds—Expenses incident to mining oper¬

terest.

Danly Machine Specialties, Inc.

Co., Casper, Wyo.

Sept. 20

ations.

Dec. 27

(97)

Office

purposes.

—

2342 West River-

Oct. 25

Aug. 15 (letter of notification) 15,000,000 shares of com¬
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Offiee
—15 Exchange Place, Salt Lake City, Utah.
Underwriter

Co.,

(letter of notification) 1,500,000 shares of com¬
(par one cent). Price—20 cents per share.

stock

mon

mon

—Western States Investment

Underwriter—None.

Ave., Dayton, Ohio.

Corp., Salt Lake City, Utah

Proceeds—For expenses

incident to drilling for oil and
Office—Colorado Bldg., Denver, Colo. Underwriter
—Philip Gordon & Co., Inc., New York.
gas.

city.

same

Edgemont Shopping Center, Inc., Chicago, III.

CALENDAR

ISSUE

NEW

Oct. 14 filed 6,000 shares of class A common stock. Price
—At par ($100 per share).
Proceeds—To acquire title
to

shopping center in Lansing, Mich., from builder of
Underwriter—None, offering to be made throughofficers of company. Funds are to be held in escrow (if
pot enough is received, funds will be returned to pur¬
chasers of stock).
center.

Green (A. P.) Fire Brick Co

Debentures

Securities

(Aetna

Southern

Atlas Plywood Corp
(Van

if Estate Security,

$1,250,000

Oil

-—Common

Co
(S.

Puller

D.

Coastal States Oil &
(Blair

&

Co.

Northern Pacific Ry

..Common

Co...

Gas

(Wednesday)

January 25

$299,700

Co.)

&

>

stock

For

Equip. Trust Ctfs.

(Bids to be invited) $5,500,000

January 27

Bonds

(Republic of)

vation

$2,000,000

(Allen & Co.)

Lisbon

International Metals Corp
^Gearnart &

Common
Inc.)

Otis,

$400,000

4

Uranium

(Friday)

Office—4224 Luther

January 30
Danly Machine
(A.

G.

Becker

Co.

&

180,000

Inc.)

be

(To

Common

Specialties, Inc

Paine, Webber,

shares

;

Puerto

Rican

Jai

(F.

January

General Shoe

.Common
Co.)

Korvette

Texas Utilities

$6,000,000

(Bids

(Carl M. Loeb, Rhoades & Co.) 222,000 shaves

and William R.

Staats & Co.) $3,000,000

Union Planters National Bank

Common

(Offering to stockholders—underwritten
Corp.)

(Union

*

by

(non-voting) common stock (par 50 cents). Of these
shares, 40,000 are to be offered to officers, directors and

'•

••

employees of the company. Class A, B and C stock will
also be issued to policyholders of the Farm & Home
Insurance Co. in exchange for the assignment of their
insurance dividends.
Price — At. their respective par

,

Common
$300,000

invited)

;

Farmer's Educational and Co-Operative

America, Denver, Colo.

Common

Co.___.-__^_

;Nov.

Securities,Co;p. and Smith, Barney & Co.) 75,000 shares

Western Greyhound Racing, Inc..
Reiter

J.

(M.

Equitable Securities

Co.)

^Common

Ohio Water Service

v,
-

(Offering

Co

&

Co.)

?

Common

_

by
12,157 shares

Power & Light Co
..
(Bids noon EST) $10,000,000

Central

(Friday)

stockholders—underwritten

to

Blair

F.

(Monday)

1:..-;

:

(Offering to stockholders—underwritten by Allen
Brooks &

Co.,

Inc.;

-

*•

-

Maine

& Co.; P. W.
Auchincloss, Parker & Redpath)
263,771 shares

'

'

(P.

W.

Brooks

&

Inc.)

Co.,

(Equitable Securities Corp.)

•—.

Common A & B

(Offering

Barney

be
'

(Bids

Class A

invited)

11

-

*!>

(

(Friday)

Mississippi

Southern National Bank
to

stockholders)

(Bids

(Ga.)

January 23
&

shares

•

1

*

R.

Staats

and

The

'

<fc

Co.)

(Bids

(Bids

$10,000,000

Co.;

Carl

Bankers




M.

Bona

Common

be

to

be

capital and surplus account. Underwriter — None,
Louis Eliasberg, Louis -Eliasberg, Jr., and Richard

to

be

A.
committed to purchase any
<

if First Investors Corp.f New
29 filed an

ment

Plans-

Plans

(DWP).

but

York

-

I

'.

-

additional $100,000,000 in Periodic Pay¬

(DW

and

DWN)

Single

and

Payment

Detroit, Mich.

Common
$1,000,000

$4,000,000

Preferred

<

$4,000,000

$70 per share). Proceeds—To Ford Foundation.
Underwriters—Blyth & Co., Inc.; The First Boston Corp.;
Goldman, Sachs & Co.; Kuhn, Loeb & Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; and
around

..Bonds

invited)

(1/18)

10,200,000 shares of common stock (par $5).
Price—To be supplied by amendment (expected to be
Dec. 21 filed

!
Corp.)

invited)

15

to

'

White, Weld & Co.

(Thursday)

Ford
Bonds

be

invited)

March 29

Loeb,

Co.)

Insurance Co., Baltimore, Md„

invited)

(Thursday)

$14,000,000

$1,800,000

Debentures & Common
&

t

.

......Bonds 4

Alabama Power Co

Preferred

about

Federal Life

$3,000,000

Refining Co
(Loewi

(William

••

(Wednesday)

Mississippi Power Co...

Com.

(Monday)

Cumberland Corp.

Proceeds—For

share.

filed 20,000

(President), are
unsubscribed shares; SZ ~

Co

March

Oil

to
1

Investing

Power
(Bids

Common

(Offering

Clark

■

(Tuesday)

Co...:

Colohoma Uranium, Inc

(Offering to stockholders—no underwriting) 92,636

per

shares of capital stock (par $10) to
be offered for subscription by class A and class B stock¬
holders of The Finance Co. of America at Baltimore on
a l-for-5 basis.
Price—$20.50 per share. Proceeds—For
Dec. 21

Ford Motor Co.,

100,000 shares

B. S. F. Co

.

$7,000,000/...

200,000 shares -

invited)

be

to

March

(General

&

First

by Smith,

.

,

Northern States Power Co

Common

January 20

Citizens

underwritten
shares

I

Co.___--.-_.r.^^..Common
EST)

a.m.

February 29

(Offering to stockholders—to be underwritten by
Blyth & Co., Inc.)

Price—$3

$1).

quisition of Economy Service, Inc. , Office—415 Ray¬
Blvd., Newark, N. J.
Underwriter — S. D. Fuller
& Co., New York.

'>

Dec
—

10,200.000 shares

>
•

•-

Class A Common

Seattle-First National Bank

(par

working capital and subsequently to defray cost of ac¬

<

(Monday)

EST J

February 28
(Bids

;

a.m.

Texas Electric Service

(Blyth & Co., Inc.; The First Boston Corp.; Goldman, Sachs
Co.;
Kuhn,
Loeb
&
Co.;
Lehman
Brothers;
Merrill
Lynch, Pierce, Fenner & Beane; and White, Weld & Co.)

t

.

Eliasberg

&
'

•

'

$7,000,000

Ford Motor Co

11

Kansas Gas & Electric

$750,000

Chicago, Burlington & Quincy RR._Equip. Tr. Ctfs.
be

.

Kansas Gas & Electric Co._.._..Bonds

January 16;: (Wednesday)
to

,

83,030

Co.)

&

„

(Bids

(Bids

.

'

February 27

;

$9,000,000

(Thursday)

to stockholders—may
*

January 17-(Tuesday)
-

stock

.

(1/9)

99,900 shares of common

Southern Indiana Gas & Electric Co..—.Common

100,000 shares

Signature Loan Co.; Inc.-iih
-/V .-'*
(Simon, Strauss <Ss Himme)

>

Newark, N. J.

mond

Inc.) 225,000 shares

.

invited)

be

February 23

Common

**^^'(MHton D. Blauner & Co.,

to

•

(

Common

Sib/ray Lighting, Inc.!___
•••

(Bids

officers, directors and employees
is often referred to as National

(letter of notification)

6

Dec.

Preferred

Co

which

Union,

Federal Oil Co.,

•

\

Bonds

(Bids to be invited) $25,000,000

k

Pennsylvania Electric

$1,125,000

National Old Line Insurance Co
•'

t

and

Fidelity Life Insurance Co

-

(Bids to be invited) $10,000,000

"

the

..Bonds

Pennsylvania Electric Co

Continental Copper & Steel Industries, Inc.__Com.

.

and agents, and by

ers

Farmers Union.

Dallas Power & Light Co.____i_—

January 16

•

(Wednesday)

February 15

*

,

Bonds
_

and to expand the Union's educational activities. Underwriter—None. Debentures to be sold by salesmen, dealof

Claybaugh

.

registered debentures/ series

Union

(Tuesday)
*

January 13

$2,300,000 of

spectively). Proceeds — To be loaned to or invested in
subsidiaries; to retire outstanding indebtedness;

$2,250,000

$2,100,000

February 14
%:■

filed

23

Union of

'4 • •'

A; $500,000 of registered savings debentures, series B;
and $1,200,000 of registered savings debentures, series
C. Price—At par (in units of $100, $125 and $120, re¬

(Monday)

February 13

Underwriters—

McNelis and John J. Rhodes. '

James E.

$15,000,000

about

(Wednesday)

Electric

Proceeds—For working capital.

values.
"

Common

—

be

common

C

"

Co.-^—Debentures
$25,000,000

Milling Co

Co
to

City

Debentures

—

(Smith, Barney & Co.

Atlantic

...Common

Lear, Inc.

invited)

be

February 1

(E. J.), Inc.__

'
**

(voting)

(par $25 cents); 214,285 shares of class B (voting)
common stock (par 35 cents); and 300,000 shares of class

Mitchum, Jones
W'r'*

filed 240,000 shares of class A

1

stock

by

(Tuesday)

(Franklin Securities Co.)

____Preferred

January 12 (Thursday)
.

underwritten

be

$14,377,240

Telephone

to

Southern Mining &

160,000 shares

EST)

a.m.

Bell

(Bids

Corp

New Orleans Public Service Inc
(Bids 11:30

Templeton)

January 31

(Wednesday)

11

(Smith, Barney &

'

V

$1,875,000

Inc.)

Co.,

Preferred

vi

Northwestern

i

,

&

Jackson & Curtis and

&

1

ofier—to

excnange

Common

Alai, Inc

H. Crerie

under

Co.,

Phoenix, Ariz.

(Monday)

Telephone Co. of California

offered

4

Farm & Home Loan & Discount

Dec.

General

Business—Preser¬

microfilm in

bomb-prool
St., Riverside, Calif. Under¬
on

^ "v.\

Common
1,306,209 shares

/

(Tuesday)

January 10

business records

of

writer—None.

Corp...

(Offering to stockholders—no underwriting)

pre¬
com¬

(par $1) to be offered in units of one share
of stock.
Price—$1 per unit.
Proceeds—

equipment and working capital.

files.

Cuba

Calif.

each class

of

500,000 shares

Incorporated)

Riverside,

(letter of notification) 50,000 shares of 8%
ferred stock (par $1) and 50,000 shares of class A
mon

Federal

Inc.,

Dec. 20

Debentures

....

(Blair & Co. Incorporated) $30,000,000

$6,000,000

& Co.)

Noel

-

-^..Debentures

Textron American Inc

Debentures

Alslyne,

Oxygen Co.__.

Lemon & Co. and Union Securities Corp.)

(Johnston,

(Monday)

January 9

Common

(Blyth & Co., Inc. and Shields & Co.) 245,007 shares

$300,000

Corp.)

(Tuesday)

24

January

(Friday)

January 6

Homes,1 Inc

Techbuilt

Rhoades & Co.;
$990,000
J ~r.

Georgia
-

Power

(Thursday)

be

invited)

$16,000,000

21

Co., Detroit, Mich.

"•*

•

'

,

>

filed

derwriter.—None.*
Bonds

Co

(Bids to

Motor

800,000 shares of common stock (par $5)
to be offered pursuant to the company's Savings and
Stock Investment Program for Salaried Employees. Un¬
Dec.

^

;

i

v ~

Continued

on page

42

The Commercial and Financial Chronicle

(98)

*2

Continued

from

Price—$1,825,000, plus accrued interest of $29,632. Pro¬
ceeds—To purchase certain working or leasehold inter¬
ests in oil and gas interests. Underwriter—None.

41

page

* Ford Motor Co., Detroit, Mich.

stock (par $5),
options granted
by company to certain of its key employees pursuant to
its Employees' Stock Option Plan (adopted Jan. 30,1953).
Dec. 29 filed 2,160,600 shares of common
which have been or may be issued under

Proceeds—Have been

Dec.

..••••

;"y \

' r

,

29 filed

which

are

Jan.

■'
•'
■
stock (par $5),

-

900,000 shares of common
to be offered to such key employees of com¬

<1, 1966.-

costs.

Price—At

—For

mining

Utah.

par

.

(two cents per share).
Proceeds
Office—E-17 Army Way, Ogden,

Underwriter—United

Intermountain

*■■■;:

.

Brokerage

?y::y " Jv

rate

purposes.

York, N.

Packaging International, Inc.

Mineral

r

y

Development Conp.

common

share.

—

,,

Israel-Rassco

Investment Co.,

Ltd.
Sept. 28 filed 9,000 ordinary shares. Price—At
par (100
Israel pounds each, or about
$55 in U. S. funds), payable
in State of Israel
Independence Issue Bonds only. Offiee
—Tel Aviv, Israeli Underwriter
Rassco Israel Corp..
—

New York.

Hammermill Paper

&

stock (par
$25)„
Proceeds—For general
corpO-/
Underwriter
Israel Securities Cord. J
Y.
Q'V.-y ■/,,•;
';'"V
y,..y „y,r

per

New

"Isras"

expenses.

Corp., Ogden, Utah.

eral corporate purposes.

Brooklyn 5,
;
/.y

Industrial

Price—$27.50

Half Moon Uranium Corp., Ogden, Utah

stock.

Arliss Co., Inc. for purchase of
equip¬
—
369-375 DeKalb Ave.,

Underwriter—Kamen & Co., New York.

Israel

Underwriter—None.

Thursday, January 5, 1956

Office

Oct. 5 filed 200,000 shares of

$600,000 of 10-year 5% debentures due
Price—100%- of principal amount.
Pro¬

Aug. 10 (letter of notification) .8,000,000 shares of capita]

subsidiaries as in the future may be granted
'options to purchase such shares pursuant to the 1955
Stock Option Plan of the company. Proceeds—For gen¬

Pitt

filed

30

ceeds—For construction

pany and its

Fort

N. Y.

it Gulf Natural Gas Corp., New Orleans; La.
Dec.

will be used for general corpo¬

or

rate purposes.

For advances to

ment, etc.

...

Co., Erie,*Pa.

y/-;/Vy;

J--:

y Jurassic
Dec. 20 filed. 166,400 shares of common stock (par $2.50)
Minerals, Inc., Cortez, Colo*-i.■'
-'y
stock (par 10*),
to be offered in exchange for shares of capital stock
Aug.-26 (letter of notification) 2,855,000 shares of noaof company and
of Watervliet Paper Co. in the ratio of 26 shares of
4 assessable common stock (par on^-cent). Price-^10 centi
50,000 shares of five selling stockholders. Price—$3 per
Hammermill common stock for each 25 shares of Waterper share.
Proceeds—For expenses incident to
mining
•hare. Proceeds—For working capital; for-exploitation
vliet stock/ This offer is subject to acceptance by hold¬
activities.- Office
326: West Montezuma
St, CdrtS,
of "Totosave" system; arid for marketing of-"Tropie- ■
ers of at least 128,000 shares (80% of
Colo. - Underwriter -—Bay Securities
outstanding Water¬
Corp., New York,
Ray" infra-red space heater. Office —Pittsburgh, Pk.
vliet stock).
Underwriter—None. "/ ' >■ New York.
Underwriter—Barrett Herrick & Co., Inc., New York, y.
.

Jtine 30

filed 300,000 shares of common
of which 250,000 shares of for account

-

*

—

•

"

Franklin

Railway Supply Co.

Helio Aircraft Corp.,

J_.

•

-

Oct. 19 (letter of notification) 20,000 shares of-commdn
fetock (no par) to be offered tdr subscription by^stockholders.
Price—$10 per share:; Proceeds—To^ reduce
unsecured bank loans and for working capital. -Office—

tive

and

engineering expenses.

Office

None.

Market

:

v

:

,

.

Metropolitan
Underwriter—

V

.

_,

^ Helio

r

—

Airport/ Canton (Norwood P. O.), Mass.

St., Wilmington^ Del, Underwriter—Nbne,
But C. W. Floyd Coffin and Herman F. Ball have agreed
to purchase all shares not subscribed for by stockholders.
927

Canton, Mass.

Nov. 3 (letter of notification) 24,000 shares of common
stofck. Price—$5 per share. Proceeds—For administra¬

Kendon Electronics
C(r.,'lnc./ : : ' 1- ,y z":-'Oct. 27 tletter; Of notification) 60,000 shares "of commdn
stock (par 10
cents)/Price—40 cents per share. Proceeds
—To Nicholas J. Papadakos, the
selling stockholder. Of-'
fice—129 Pierrepont Sty
Brooklyn, N. Y; Underwriter—
20th Century Pioneer Securities
Co.* New York. • v- ? / -:
•

Aircraft Corp;; Cantohr Mass.

Korvette

(E.

Inc.*-(i/12).

J.),

^

150,000 shares of common stock (par $1). / Dec. 16 filed 222,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—For im- *
Price—To be supplied by amendment.
Fremont Uranium Co., Salt Lake City, Utah
?
1 r
Proceeds—Foiy
general corporate purposes. Business—To operate a
provements, research, development and working capital.
chaih/
Aug. 1 (letter of notification) 15,000,000 shares of com¬
of retail stores in New York
Office—Metropolitan
Airport,
Canton
(Norwood
P.
City
and
suburbs.
Office—'
O.),
mon stock.
Price—At par (one cent per share).
Pro--'
White Plains, N. Y. Undervvriter-r-Carl M;
Mass.
Underwriter—To be supplied by amendment.
Loeb, Rnoades1
ceeds—For mining expenses; Office—515 Deseret Bldg.,
& Co., New York.
:
Salt Lake City, Utah. Underwriter — Mo ah Brokerage
Home- Acceptance Corp., Salt Lake City, Utah
Co., Western States Investment Coy Potter Investment
Lander Valley Uranium & Oil
Sept. 1 (letter of notification) $300,000 of 25-year 6%
Corp.
Co., Mid-America Securities, Inc. of Utah, and CashinAug. 15 (letter of notification) 3,000,000 shares of com¬
junior subordinated debentures due Oct. 1, 1980. Price—
-Emery, Inc., all of Salt Lake City, Utah. y\, ; -'/y'
At par (in denominations of $1,000; $500 and $100). Pro¬
mon stock
(par two cents).
Price—10 cents per share."
ceeds—For working capital.; Office—837 South Maine
Proceeds—For expenses incident to
Frontier Assurance Co., Phoenix, Ariz.
mining activities.
Office—c/o
Warren
E.
St., Salt Lake City, Utah. Underwriter—Edward L. Bur¬
Morgan, President, 1705 East First
Dec. 2 (letter of notification) 2,000 shares of class E
ton & Co., same city,
<•
South, Salt Lake City, Utah. Underwriter—Empire Se¬
voting common stock (par $25), to be offered for sub¬
curities Corp., Las Vegas, .Nev.
scription by holders of class A common stock. Price—
Hunt Uranium Corp., Green River, Utah
$36.50 per share. Proceeds — For capital and surplus '
Lear, Inc.; Santa Monica, Calif. (l/12) v
Aug. 22 (letter of notification) 1,200,000 shares of com¬
Office—4143 N 19th Ave., Phoenix, Ariz. Underwriter—
mon
stock.
Price—At par (25 cents -per-share).- Pro¬
Dec. 21 filed $3,000,000 of subordinated debentures due'
None.
y;y? yy'/yyy'■ ;//yv:\\yyy y ;y' ceeds—For
Dec. 1, 1970 (convertible through Nov.
expenses incident to mining activities. Un¬
30, 1965). Price":
derwriter
Elmer K. Aagaard, 323' Newhouse Bldg.,
—To be supplied by amendment. Proceeds—For
Gas Hills Mining ft Oil, Inc., Kemmerer, Wyo.
general:
Salt Lake City, Utah.
corporate purposes.
Underwriters
—
Smith,
Barney'&•>'
Aug. 1 (lettfei* of notification) 1,000,000 shares of capi- Co.,
New
York,
and
William'
R.
Staats
&
Co.,Los'Anial stock (pat five cents).! Price — 25 cents per share. ^
Hydro-Loc, Inc., Seattle, Wash. ;
/ 7
geles, Calif. ".'.y^yM/ V?
Proceeds—For oil and mining expenses. Underwritery y ;• /y -yOct. 25 (letter of notification) 1,674 shares of capital ii
Empire Securities Corp., Las Vegas, Nev. • - *yy*
; stock. Price—At
it
Lexington
par? ($100 per share). Proceeds—For-.
Funds,'Inc., New York
v
"
n. Dee. 29 filed 350,000-shares of
it General American Oil Co. of Texas
Lexington Venture Fund }
y;jyr:;; working capital, etc. Office—603 Central'
4,
Wash.
Underwriter—Pacific
Brokerage Co;*ofH3eattle,w Stock;; Price-1—At market. Proceeds—For investment.
Dec. 20 (letter of notification) contributions to the Em¬
Wash.
ployees' Savings Plan in the amount of $240,978.52 (half
{Elfe Underwriters Insurance Co., Shreveport, La.
by employees and half by company) to be used to pur¬
Ideal-Aerosmith, Inc., Hawthorne, Calif.
Sept. 26 filed 100,000 shares of common stock (par 25
chase common stock of the company.
Underwriter—
f
Dec. 16 (letter of notification) 150,000 shares of capital
cents) to be offered for subscription by present stock-0
None.
: :/ y/'/ • ■ ; ;■/> --yy >y>* •
^yy-y y " / stock (par $1). Price$2 per share? Proceeds — For holders of record July 21," 1955 on the basis of one newb- General Public Service
equipment, machinery, inventory, etc. Office—12909 So^
share for each four shares held; rights to
Corp. • : y;' 'ly,:' y/yy/;;::y
expire 45 days
Cerise Ave., Hawthorne; Calif. Underwriter—Samuel B.
from the ^commencement of the
Dec. 12 filed 1,652,176 shares of common stock (par 10(0
offering,-after which
Franklin & Co., Los Angeles, Calif.
unsold shares will be offered to public.
being offered for subscription by stockholders of record
Price—$8.75 per '
*1:- share to stockholders; $10 per share to public.; Proceeds
Jan. 4, 1956, at the rate of one new share for each two
Incorporated Mortgage Investors
—For expansion nnd
shares then held, with an oversubscription
working
capital.
< Underwriter—
privilege;
Dec. 7 (letter of notification) $233,000 of 8% registered ; None, w.'
..y.y,.-.;-/y.;:• yy;???•^
rights will expire on Jan. 18. Price—$4.37 Vz per share.
debentures, due Jan. 1, 1976, and 58,250 shares of com¬
;I''>^;yy'" -y :?'A?•
Proceeds
To add investments in the
company's port¬
mon stock
it Lisbon," Uranium Corp/^lf
(par $l)*to be offered in units of one $100
folio. / Underwriter—Stone & Webster Securities
Corp.,
debenture and 25 shares of stock.
Price—$125 per unit.
Dec. 28 filed 1,306,209 shares of common.stock
New York. ; <
;
(par: 150)^
i
Proceeds—To be invested in the mortgage investment ' to be offered for
subscription by common stockholders ;
portfolio.
Office—1012 H St.; N. W.j Washington, D. C.
General Shoe Corp.,
of
record
Jan.
27, 1956, at the rate of three new shares'
Nashville, Tenn. (1/11)
J
Underwriter—Federal Investment Co., same city. :r
for each ten shares held... Price—$4
t)ec. 21 filed 160,000 shares of common stock
per share; /Proceeds
(par $1).
f
To
Price
To be supplied
repay advances
by Atlas Corp. - of ; approximately '
by amendment. Proceeds—For
Indian Monument Uranium
Mining Corp. / :
$4,039,000, which has or will be used to acquire option
working capital. Underwriter— Smith, Barney & Co.,
^
Sept. 6 (letter of notification) 3,000,000 shares of com¬
to purchase the so-called Barrett claims and
New York.
y y
■
y.,;'">■ v-A * mon
pay balance
stock (par one cent).
Price—10 cents per share.
of purchase price; for exploration and
'.
' ''' ' ,;."v
drilling expenses,
Proceeds
For expenses incident to
Great Southwest Fire Insurance
and for other corporate purposes. ~ Office— Salt Lake
mining activities.
Co.,
V
Office—205 Byington Building, Reno, Nev. Underwriter
Phdenix, Ariz.
■
•
<
•
City; Utah; ; Underwriter—None, but Wasatch Corp., a!
y
—Richard L. Dineley, same ^address.
Oct. 26 filed 700,000 shares of
J?'?;' •
subsidiary;; of Atlas Corp.y-will ' purchase any unsub- /
capital stock (par $1), to
be offered to present and future holders of
scribed ..shares.
.yVy; y
■yyyy-'; -V y;"^
Inland Mineral Resources
policies
Corp.;
N.
Y.
issued by National Reserve Insurance Cov as ah
optioh&l
Dec. 12 (letter of notification) 600,000 shares of com-/'
rLithium
Developments, Inc., Cleveland, Ohio
dividend refund of their annual
policy premium. Price
mon stock
(par one cent).y Price—50 cents per share.
Oct. 17 filed 600,000 shares of common stock
—$1.60 per share. Proceeds—For working capital, etc.
(par 10y
Proceeds—For mining expenses.
Office—42
Underwriter
Broadway,
None.
Some of the stock will also be
cents).: Price—$1 per share. Proceeds—For exploration
New York, N. Y. Underwriter—G. F. Rothschild &
Offered to public through Kenneth K.
Co.,
and development
Pound, President;
costs;'etc. Underwriter—George Seasame address.
:
•
and Law L. Lovelace,
Secretary-Treasurer.
right; New York City.
* '
/
•
'
; ■? 1
Dec.

29

filed

.

„

.

—

-

.

';'^

.

•

,;

—

—

;

..

—

*

•

,

—

.

(

^ Great Southwest Fire Insurance

Insulated Circuits,

Co.

Dec. 21 (letter of
notification) 187,500 shares of
stock
be

(par $1).

used

for

Price—$1.60 per share.

expenses

re.

fire

and

common

Proceeds—To

•

*

,

Fire

Co.

(1/24)

International Investors Inc., New York
Aug. 23 filed 200,000 shares of capital stock

Dec. 28 filed 245,007 shares of common stock
(par $5).
Price — To be supplied
by amendment.
Proceeds —To
selling stockholders.

Office—Mexico, Mo.

Underwriters
—Blyth & Co., Inc., and Shields & Co., both of New York.

★ Guaranty Income Life Insurance Co.
Dec. 27

(letter of notification) 56,500V2 shares of
capital

stock.

Price—At

par

working capital, etc.

Rouge, La.

($1

per

share).

Proceeds—For

Office—929 Government St., Baton

Underwriter—rNone.

Gulf Coast

:

.

Leaseholds, Inc., Houston, Texas

Sept. 14 filed $2,000,000 of 5%
sinking fund convertible
debentures due Sept.
1, 1965 to be sold to Brandel Trust.




convert¬

supplied by

amendment.

casualty insurance.
Underwriter—

.

Brick

Nov. 10 filed 100,000 shares of 6%
cumulative
ible preferred stock (par $5). Price—To be

'Little Mac Uranium Co.

Proceeds—For general corporate purposes.
Underwriter—Alexander Watt & Co., Ltd., New York.

Office—4450 N. Central,
Phoenix, Ariz.
None.
:

it Green1 (A. P.)

Inc., Belleville, N. J.

Price—At market.

Proceeds—For

investment.

—To invest in foreign securities of
side of the United

(par $1)
Busmen

the free world out¬

Underwriter—I. I. I. Securi¬
ties Corp., 76 Beaver St., New
York, N. Y.y

stock

(par

10

cents). Price—$1 per share. Proceeds—To finance ex¬
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican
subsidiary,
and to discharge note. Office —
Houston, tTexi Under¬
writer—Gearhart & Otis, Inc., New York.

International

Plastic

Industries

Corp.

Price—At par

mining

expenses.

Dec.

23

~

>

.

ytyy,y;

(letter of notification)

common

stock

Lost
Oct.

6

(no par).

per

preparations.

Wilmington, Del.

assessable capital stock

share.

(par

Proceeds—For

operations- Office

—

.R

share.

Pro¬

Office—1071

'

3,000,000 shares of

one

cent).

expenses

„

^

Underwriter—None.

Canyon Uranium & Oil Co.
(letter of notification)

^

non¬

Price—10 centsy

incident

to

mining

Simms Bldg., Albuquerque, N. M.

Oct. 12

Underwriter—Mid-America

stock

Lake City, Utah.

(letter of notification) 150,000 shares of common
(par 10 cents). Price—$2 per share.' Proceeds—

Del.,

25,000 shares of class Asa

Price—$11.50

pharmaceutical

DuPont Bldg.,

Proceeds

Underwriter—Skyline Securities, Inc.,

it Lixovon Laboratories, Inc., Wilmington,

per

"

(10 cents per share).

OfficeT—440 West 3rd North, Salt,..

Denver, Colo.

ceeds—For

(1/9-13)
common

tal stock.

—For

Lake City, Utah.

States.

International Metals Corp.
Oct. 4 filed 400,000 shares of

Sept. 12 (letter of notification) 3,000,000 shares of capi-.ii

-

Securities

Inc. of

Utah, Salt ^

^

/olume 133

Number 5496. The Commercial and Financial Chronicle

(99)
•V

Maine
>Jov.

Fidelity Life

filed

10

Insurance Co.

(1/16-20)

^

-

45,000

shares of capital stock (par $10).
Price—$25 per share. Proceeds—For general corporate
jiirposes. Office —'Portland, Me. Underwriter—P. W.
3rooks &
■

H""'

Co., Inc., New York.

-

•

«

.

Mercury Corp., Winnemucci, Nev. ^
'
Sept. 16 (letter of notification) 1,500,000 shares of com¬
mon stock
(par one cent). Price—20 cents per share.

share, and 1,857 shares
dents of
Pennsylvania

Proceeds—For

Pa.

incident

expenses

to

mining

\

Building, Winnemucca, Nev.
derwriter—Shelley, Roberts & Co., Denver, Colo.

-

purchase of mill.

activities.

Office—Professional

•

Manhattan Mercury Corp., Denver, Colo.

i

Main

Concord, N. H.

.'Mansfield Telephone Co., Mansfield, Ohio

Nov.

(letter of notification) 6,000 shares of 5% pre- 1
ferred stock.
Price—At par ($50 per share). Proceeds''
reduce short term indebtedness and for construction

writer

Office—35 Park Avenue East, Mansfield, Ohio.
Underwriter—None. ■
:

■

■

Manufacturers
Oct.

Cutter

-

..

•..

.

Corp.

18

(letter of notification) 300,000 shares of class A
commcn stock. Price—At
par ($1 per share). Proceeds—
To repay loans, and for new equipment and
working
tapital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same

city..;•/

To

—

Inc.

(1/11)

be

.

determined

(letter of notification) 172,500 shares of common
10 cents). Price—$1 per share. Proceeds—
For mining expenses and expenses incident to
selling
a, soil conditioner.
Office—681 Market St., San Fran¬

cisco, Calif.

of

Mines,

Price—$4

(par

35

cents).

Price

—

62x/2

cents

share.

per

Oak Mineral

—

dental to electrical transmission and
!ment.

Office—870 Tennessee

Refractories

.

:

(par $5)
to

of

femain

National

on

for 60

open

share-for-share

a

days from Nov.

s

-

-

~

;

.

★ Oceanic Drilling & Exploration Co.,
San Francisco, Calif.

gaged to do
•

*

'

•

Mobile Uranium & Oil Co., Salt Lake
City, Utah Aug. 22 (letter of notification) 5,500,000 shares of non-*'
assessable capital stock (par one
cent); / Price
Five •*
cents per share.
Proceeds
For expenses incident to :
mining activities. Office—605 Judge Bldg., Salt Lake
City, Utah. Underwriter—Skyline Securities, Inc., Den¬
ver, Colo.;,,,
■ V:,V ■ ■
•:;

t

>

*

"

so.

Water

iff"

Service

holders of record Jan.

.;

1.

t

„■

Mohawk

Silica

/

v."',;

.

■

"•''V.;/'/;

Proceeds
Blair F.

"

-

Co.

r

' y

•

*

•

(1713)

10

on

rie

For

•

construction

&

Underwriter—

program.

'

of

Underwriter

Ohio.

Dec. 9
stock

—Manufactures

Co., Denver, Colo.

(letter oL notification) 300,000 shares of
(par five cents).

Price—$1

per

share.

,

mining expenses. Office—623 First National
Building, Denver 2, Colo.
Underwriter
Globe
rities Corp., Jersey City, N. J.
—

Secu¬

be

used

sales

re.

Mt.
Nov.
mon

City, Utah.

Underwriter—None/

*-•*/

;

.

Vefnon Mining & Development Co.

16

(letter of notification)

stock.

Price—At

par

($1

v

300,000 shares of
per

share).

furniture.

*

com¬

Proceeds—

For

mining expenses.
Office—422 Continental Bank
Bldg., Salt Lake City, Utah. Underwriter
Ackerson-

Inc., Dallas, Texas.

ame

Investment

Co.,

701

Continental

city.

National Old Line Insurance Co.
*

'

Bank

Bldg.,

•

*

7

(1/16-20)

*

'?•

Nov.

15

filed

(par

$2)

and

50,000

shares

of

class

A

common

stock

50,000 shares of class B common stock
(par $2;.
Price—To be supplied by amendment. Pro¬
ceeds — To selling stockholders. Office
Little Rock,

Corp.,. Nash¬

America, Moab, Utah

*.

Sept. 7 (letter of notification) 300,000 shares of non¬
assessable common stock (par one cent).
Price—$1 per
hare.
Proceeds—For expenses incident to

mining

ac¬

tivities. Underwriter—Western Bond & Share
Co., Tulsa,
Okla.




of

preferred and

Underwriter—Choice

..

;

one

'

share

Securities

of

common

Corp.,

35

East

Hacienda, Inc., Inglewood, Calif.
stock.

common

and for general corporate
purposes.
& Bay ley Investment Co.

Inc., Las Vegas, Nev.

Price—

Underwriter—Wil¬

son

Roberts, Las Vegas, Nev.

stock

,

★ Republic Aviation Corp.

.

per

Outboard, Marine & Manufacturing Co.

"

dividend paid Dec. 29 to holders of record Dec.

Underwriter—None.

Republic Benefit Insurance Co., Tucson, Ariz.

Metals

&

to be offered to certain mem¬
bers of the general public who are acceptable applicants
and who are to become active policyholders in the com¬

pany.
Price—$2 per unit. Proceeds—For general cor¬
porate purposes. Underwriter—None; to be offered by

Leo

Uranium,* Inc.

Uranium &

Oct.

17

Oil

for

3

Trus¬

filed

1,500,000 shares of common stock (par
Price—50 cents per share. Proceeds—For

working capital and mining expenses. Office
Underwriter

—

The Matthew Corp.,

—

Moab,

Washington,

D. C.
com¬
„

Riddle

Airlines, |lnc.,

Miami, Fla.

—

Penn Precision Products,

Inc., Reading, Pa.

(letter of notification) 3,857 shares of common
(no par), of which 2,000 shares are to be offered
subscription by existing stockholders at $12 per

stock

22

cent).

Utah.

(par five cents). Price—10 cents per share.
For mining expenses.
Office — Newhouse
Bldg., Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.

Nov.

one

Corp.

(letter of notification) 3,000,000 shares of

as

Reynolds Mining & Development Corp.
Nov.

stock

mon

Rich, Robert Kissel and Sidney M. Gilberg,

tees.

Aug. 12 (letter of notification) 12,000,000 shares of com¬
mon stock.
Price—At par (one cent per share).
Pro¬
ceeds—For expenses incident to mining activities. Office
—419 Judge Bldg., Salt Lake City, Utah.
Underwriter—
Guss Securities Co., Salt Lake City, Utah.
Paria

dividend trust and stock

a

procurement agreement

selling stockholders. Price—To stockholders
$37.50 per share; and to public $42.50 per share. Pro¬
ceeds—For capital expenditures.
Underwriter—Morgan
Stanley & Co., New York.
International

7, 1955.

^

Sept. 30 filed 150,000 units in

count of two

Pacific

(letter of notification) 1,344 shares of common
(par $1). Price — At market (approximately $43
share). Proceeds—To common stockholders entitled

to receive fractional shares in connection with
10% stock

1956 on the basis of one new share for each 10 shares
held (rights to expire on Jan. 23); the
remaining 100,000
shares were on Jan. 5 offered to the public for the ac¬

Proceeds

Natural Power Corp. of

'

?

Street, New York, N. Y.

Dec. 20

—

Ark.
Underwriter—Equitable Securities
ville, Tenn., and New York, N. Y.

r

Clearing House, Inc.

share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilities

—

Hackett

stadium, etc.

Underwriter—F. H. Cre-

At par ($1 per

Underwriter—

(par 83^
cents), of which 213,845 shares are being offered for
subscription by common stockholders of record Jan. 4,

discount

St.,

Lake

shares

Reno

Dec. 15 filed 313,845 shares of common stock

financing for
complete payments on property, improvements and oper¬
ating capital and reserves. Office—3440 South State
Salt

Y.

(letter of notification) 3,000 shares of capital
•tock.
Price—At par ($100 per share).
Proceeds—For
South 5th St., Las Vegas, Nev. Underwriter—Hennon A

•

(letter of notification) 1,100,000 shares of non¬
(par 10 cents).
Price—25 cents.

assessable capital stock

Proceeds—To

sports

Aug. 16

Bank

* Motor city Credit Corp., Salt Lake City, Utah
21

(par'One
purchase'

Proceeds—To
of

Dec. 19 filed 4,000,000 shares of

common

Ottilia Villa,

share.

construction

Dec.

household

Dallas Rupe & Son,

Proceeds—

For

Dec.

N.

com¬

—

'

Monitor Exploration

of

per

_

stock

common

Price—$2.05 per unit. Proceeds—For working
capital, etc. Office—161 West 54th Street, New York,

28; rights to expire Jan. 11.
Price
To stockholders $9.50 per share; to
public $10
per share.
Proceeds—For expansion program. Business

W. E. Hutton & Co.,
Cincinnati,

—

preferred stock for each 2.597 shares of
as

for

Estate

two

12th

Ohio.

-

Sept. 14 (letter of notification) 270,000 shares of 7%
cumulative preferred stock (par $1) and
135,000 shares
of common stock (par five
cents) to be offered in units

share

held

and

*

Alai, Inc. <(1/10)

Co., Inc., New York.

lative preferred stock.

of

-

Corp.* Washington, D. C.

Rican Jai

Price—$1.50

Real

Claybaugh & Co., Harrisburg, Pa.

stock

»

l-for-10

a

24 filed

mon

*

Office—San Juan, Puerto Rico.

Proceeds—For

Price — At par ($50 per
share).
processing plant, heavy equipment, and
working capital. Office—2508 Auburn Ave., Cincinnati,

4 West 58th

—

,

Business—Playing of jai alai, with pari-mutufel betting.J

stock.

cumu¬

Office

-

.

Nov. 3 filed 1,250,000 shares of

property

7

Olive-Myers-Spalti Mfg. Co., Dallas, Texas

Oct.

notification) 3,000 shares of 8%

;

Puerto

cent).

,

K

k.

★

100,000 shares of 55-cent cumulative con¬
vertible preferred stock (par $6.25) being offered for
subscription: by common stockholders on basis of one

Oct. 3 .(letter of

'

~

i

•

"

Co., Cincinnati, Ohio

''

St., New York 19, N. Y.- Business—Guaranteeing of cred¬
throughout the United States and Europe. * Underwriter

basis; rights to
Jan. 31/ Price—To be supplied by amendment.

—

*'

V

"

1

—

(letter of notification) 12,157 shares of common
stock to be offered for
subscription by common stock-/
on

A

'

Nov. 22 filed 111,000 shares of '44-cent cumulative
prior
preferred stock (par $5) and 55,500 shares of 10-cent
par
common stock to be offered
in units of one share of
preferred stock and one-half .share of common stock.

19

expire

'

—For general corporate
purposes.

—None.

-

—

'

'

greater^ /Price—$6.75 per unit. Proceeds—Forfgeneral corporate
purposes. Underwriter
Straus, BloSser &^McDoWell,..
Chicago, 111.
r
<
r.
f
y

'

Ohio

'

'■"

$925,000 of Limited Partnership Interests in

•

Dec.

* *'

'

'

"

Inc.

it

Francisco, Calif., will assist in the sale of partnership'
/interests and other firms or persons may also be en*,

Offer is conditioned upon Mexico
owning at least 80% outstanding National stock upon consummation of °
-

Pro-/

are multiples of
$12,500.' Proceeds—Tor be
spent in the drilling of exploration wells on unproved
properties; Underwriter—None, but J. Barth & Co., San.

of

exchange.

''

\

amounts that

basis;
1955.

17,

share.

*'

'

Club,

(letter of notification) 60,000 shares of Class A
stock (par $1).
Price—$5 per share. Proceeds

common

the company (which is a limited
partnership) to be of1feredrin minimum amounts of $25,000 or in-

—

filed 57,776 shares of common stock
(par $5)
being offered to stockholders of National Refractories
Co., a subsidiary, in exchange for 57,776 shares of capital
offer

Corp., Farmington, N. M.

29

Prudential Loan

19

stock

Oil

Underwriter—Philip Gordon &

St., San Francisco 7, Calif.

Co.^ Mexico, Mo.

&

Co., New-Yorker

'

distribution equip- *

Dec. 19 filed

Mexico

Oct.

V

ceeds—For exploration and development and other
gen¬
eral corporate purposes.*.

Underwriter—None..
!

.

Dec.

per

20 (letter of notification) 10,000 shares of common
(par $10).
Price—$15 per share.
Proceeds—Inci-

fctock

"

★ Prestige

:

Nov. 8 (letter of^notification)
2,000,000 shares of common '
stock (par five cents). Price—15 cents

Maydwell & Hartzell—San Francisco, Calif.

|Dec.

/

(par $1).

Pittman

Business—Publishing

%

stock

per

notes

Drilling & Oil Co., Independence, Kan.
Sept. 6 (letter of notification) 60,000 shares of 6% noncumulative preferred stock (par
$5) and 60,000 shares
of common stock (par 10
cents) to be offered in units of
one share of each.
Price—$5 per unit. Proceeds—For
payment of note and working capital. Office—420 Citi¬
zens National Bank
Bldg., Independence, Kan. Under¬
writer—Dewitt Investment Co.,
Wilmington, Del. >.
;

Underwriter—None.

r

7

common

—

(J. J.) Co., New York

its subsidiaries.

common

shares of

share. Proceeds—To pay current accounts
payable; for research and development; and
general corporate purposes.
Underwriter
North
American Securities
Co., Tulsa, Okla.

271

—

■

share for each 3% shares held; unsub¬
offered to public. ; Price—$14 per

Pipelife Corp., Tulsa, Okla.

common stock (no par) to
company's Employees' Stock
Option Plan to certain employees of the company and

Inc.

For expenses incident to
mining activities.
Underwriter—Standard Securities Corp., Spokane, Wash.

;+

Office

purposes.

Bedford, Va.

cans, bottles, boxes, etc. Office 4
Depot St., Bedford, Va.
Underwriter—Scott,
Mason, Inc., Lynchburg, Va.

Horner &

Dec. 29 filed 100,000 shares of
be offered pursuant to the

Aug. 1 (letter of notification) 300,000 shares of
Proceeds

corporate

St., New York 13, N. Y.

★ Newberry

Underwriter—Globe Securities Corp., New

Mascot
stock

general

Inc.,

lithographed labels for

and

house in Inter-American field.

York.

!

other

Church

Crescent Ave.; Readihg,

to be

Nov. 29 filed 115,000

and

(par

resi-*

stockholders and $15 to public.
Proceeds—To
finance construction of an addition to
plant re. printing

(letter of notification) 60,000 shares of common
(par 10 cents). Price—$5 per share. Proceeds—To
acquire building and equipment and for working capital

6

stock

one

share to

C.

★ New York Editors Corp.

Marl-Gro, Inc., San Francisco, Calif.

of

shares

pected to be received up to 11:30 a.m. (EST) on Jan. 11.
at Two Rector St., New York
6, N. Y.

W.

stock

Oct.

the basis

—311 West

bidders;

are

Proceeds—For

(letter of notification) 8,000 shares of common
be offered for
subscription by stockholders on

to

scribed

Dec. 29

/7/;7

19

stock

by competitive bidding.
Langley
&
Co.; Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane; Whits,
Weld & Co.;
Kidder, Peabody & Co. and Stone &
Webster Securities
Corp. (jointly); The First Boston
Corp.; Equitable Securities Corp. and Union Securities
Corp. (jointly); Blair & Co. Incorporated. Bids—Ex¬

Probable

"

program.

i

★ Piedmont Label Co.,

Dec, 2 filed 60,000 shares of cumulative
preferred stock
(par $100). Proceeds—For construction program. Under¬

4

i—To

Service

501

—

Underwriter—None.

Dec.

Public

Office

$14 per share.

St.,

Underwriter—None.

New Orleans

at

Penn-Utah Uranium, Inc.,
Reno, Nev.
Aug. 4 (letter of notification) 2,U00,000 shares of com¬
mon stock
(par three cents). Price—15 cents per share.
Proceeds—For expenses incident to
mining activities.
Office—206 N. Virginia
Street, Reno, Nev. Underwriter
—Philip Gordon & Co., Inc., New York, N. Y.

,

/er, Colo. Underwriters—General Investing Corp., New
York; and Investment Service Co., Denver, Colo.

to non-stockholders who

Un¬

Pet. 26 (letter of notification) 1,500,000 shares of com- 4 ★ New Hampshire Business Development Corp.
jnon stock (par one cent), of which 1,400,000 shares are * Dec. 21
(letter of notification) 250 shares of common
for account of company and 100,000 shares for certain ; stock (no par). " Price—$100
per share.
Proceeds—To
stockholders. Price—20 cents per share. Proceeds—For ; be used for the
purpose of encouraging the industrial
fnining expenses. Office—374 Denver Club Bldg., Dengrowth of New Hampshire.
Office—18 North

j

43

*

■

Nevada

Dec.

20

cents)
the

967,500

shares

of

common

stock

(par 10

to be offered for subscription by stockholders at

rate

(with

filed

of

one

new

share

for

each

four

shares

held

oversubscription privilege). [The company has
obtained from certain stockholders waivers of subscrip¬
an

tion rights applicable to not less than 100,000 shares and

Continued

on

page

44

44

The Commercial and Financial Chronicle.. .Thursday, January 5,

(100)

Continued from page

the general public free
rights.] Price—To be sup¬

such shares are to be offered to
of

stockholders', prior

the

shares of common stock

225,000

filed

16

Dec.

Texas Eastern Transmission

(1/16)

Silvray Lighting, Inc.

43

Nov.

the account
account of
stockholders. Price—To be $3 per share.

cents), of which 75,000 shares are to be for
the company and 150,000 shares for the

of

plied by amendment.. Proceeds—To repay bank loan
eiid for working capital. Underwriter—Eisele & King,

Proceeds

Libaire, Stout & Co., New York.

capital.

certain selling

To

—

—

New York.

rtock

be

to

share for each four shares

working capital due to losses

replenish

Proceeds—To

on a basis of one
Price—($29 per share).

held.

Underwriter—None

sustained in recent flood.

.

ir Rowan Controller Co., Baltimore, Md.

San Juan

Racing Association,

Price

Spurr Mining Corp.
stock.

(letter of notification) 925,000 shares of non¬
common stock (par one cent). Price—12 cents
Proceeds—For expenses incident to mining
activities. Office
718 Kittredge Bldg., Denver, Colo.

Sandia Mining & Development Corp.

cent). Price—10 cents per share. Pro¬
mining expenses. Office — Simms Bldg.,
Albuquerque, N. M. Underwriter—Mid-America Secu¬
rities, Inc. of Utah, Salt Lake City, Utah.
77////:'77r
Sans

Souci

tion

1,428,000 shares of common stock (of which
1,097,529 shares are to be offered for subscription by
at rate of 1% shares for each share held;
£0,471 shares are to be issued in payment for claims of
seven
individuals and firms aggregating $30,471; and
300,000 shares are to be offered by George E. Mitzel,
President of company).
Price—$1 per share. Proceeds

•hares

•

sulphur

—For expenses

common

Press

of

New

Moab,

Utah. Underwriter—Honnold
City, Utah.
\ •. //■'/
,,'7,

Underwriter—None,

but

Sheraton

Securities

Corp.,

a

Shumway's Broken Arrow Uranium, Inc.

Salt Lake City, Utah.

stock

For

mining

expenses.

—Ackerson-Hackett

Office—Moab, Utah. Underwriter
Investment Co.,
Salt Lake City,

Utah.

Signature Loan Co., Inc., Yonkers, N. Y.
Dec.

23

(par

$1.)

filed

150,000

Price—$5

shares
per

of

share.

capital and general corporate

class

A

(1/17)

common

stock

Proceeds—For working

purposes.

Underwriters

Simon, Strauss & Himme and A. M. Kidder & Co., both
New York; William N.
Pope, Inc., Syracuse, N. Y.;

of

and

Chace, Whiteside, West & Winslow, Inc., and Draper,
Co., both of Boston, Mass.

unit.

Pro¬

(letter of notification)
common

stock.

100,000

Price—At par

Oct. 27 filed 2,573,508 shares of common stock (par $1),
which will be issuable upon exercise of the common

shares

'Trinidad Brick & Tile Co.
Dec.

14

stock

••

'

(letter of notification)

800

shares of common

construction notes
Proceeds—For pay¬
ing notes payable and accounts payable and operating
due

•

-%**

(par $100); and $75,000 of 6%

Dec.

man,

7

&

Inc.,

Co.,

Salt

15,

1963.

Price—At par.

Office—Trinidad, Colo.
Underwriters—FairHarris & Co., Inc., Chicago, 111.
•
7'77;>

^

;7^ ^

/

j

7

•

*

1

s

■

7

Underwriters Factors Corp.
7
(letter of notification) 29,500 shares of 6%%
participating convertible preferred stock (par $10) and
2,950 shares of common stock (par one cent) to be
offered in units of 10 shares of preferred stock and
one share of common stock.
Price — $100.01 per unit.

Proceeds

Vesey
and

/
' " -7

Tunacraft, Inc., Kansas City, Mo.
Aug. 22 (letter of notification) $295,000 principal amount
of 6% 12-year registered subordinated sinking fund de¬
bentures, dated Sept. 1, 1955 (with stock purchase war¬
rants). Price—At par (in denominations of $100 each
or multiples thereof).
Proceeds—To refinance and dis¬
charge secured obligation. Underwriter — McDonald,
Evans & Co., Kansas City, Mo.

Dec.

Underwriter—Skyline Securities,

Inc., Denver, Colo.
•

■'

'

■

'

*'r

—

increase

To

St., New

American

working capital.

Office

—

51

N. Y. Underwriter—New York
Co., 90 Wall St., New York,

York,

Securities

N. Y.

Target Uranium Co., Spokane, Wash.

(letter of notification) 1,000,000 shares of non¬
(par five cents).
Price—20 cents per
share.
Proceeds
For mining expenses.
Office — 720
Paulsen Bldg., Spokane, Wash.
Underwriter— Percy
Dale Lanphere, Emnire State Bldg., Spokane, Wash.
Aug. 12

assessable stock

—

•

(letter of notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—

per

purchase warrants presently outstanding. Pricecurrently entitled the holder to purchase
at $17.76
per
share for each one share
•pecified in the warrant certificate,
/
/

Sept. 9 (letter of notification) 3,000,000 shares of capita)
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining operations. Office—605 Judge Bldg.,

initially by the company (a) to its stockholders on the
basis of $100 principal amount of debentures for each

Nov. 7

Uranium Co.

Sweetwater

Corp. of America

subsidiary, will handle stock sales.

Price—$1,010

professional and editorial
assistance, advertising and promotion; and working capi¬
tal.
Office—Widener Bldg., Philadelphia, Pa.
Under¬
writer—Albert C. Schenkosky, Wichita, Kansas. 7

1.27

stock.

Lake

Oct. 31 filed $15,000,000 of 6Vz% cumulative income sub¬
ordinated debentures due Nov.
1, 1980 to be offered

Office—Boston, Mass.

stock.

payment of indebtedness, expansion, estab¬

Each warrant

Aug. 17 (letter of notification) 3,000,000 shares of com¬
mon stock. Price—At par (10 cents per share).
Proceeds
—For expenses incident to mining activities. Office—

'

—-For general corporate purposes.

con¬

•tock

Office—

Swank Uranium Drilling & Exploration Co.

shares

$247,000 of 5V2%

Tri-Continental Corp., New York

j

(letter of notification) 29,600,600 shares of com¬
Price—At par (one cent per share). Pro¬
ceeds—For mining operations.
Office—608 California
Bldg., Denver, Colo. Underwriter—Securities, Inc., P. O.
Box 127, Arvada, Colo.
'.V. 7
:77/7
mon

building, equipment, working capital, etc. Office—Spur
Route 518, a mile west of the Borough of
Hopewell,
County of Mercer, N. J.
Underwriter—Louis R. Dreyling & Co., Jamesburg, N. J.
'
*"
7

25

Inc., Philadelphia, Pa.

Nov. 9

Jersey, Inc.

of stock then held and (b) to
employees of
corporation and its subsidiaries. Price—$95 per $100 of
debentures to stockholders; and at par to public. Proceeds

7

:

capital.

(letter of notification) 15,620 shares of common
(no par).
Price—$5 per share.
Proceeds—For

Sheraton

Wilshire

shares of non¬
($1 per share).
Proceeds—For repayment of loans, working capital, etc.
Office—1810 Smith Tower, Seattle, Wash. Underwriter
—National Securities Corp., Seattle, Wash.

Proceeds

Underwriter—Morris
7' ;/>>'.*•

D.

Superior Uranium Co.,; Denver^ Colo*v

Nov. 10
stock

common

assessable

Price—At

held.

share

of

Sept. 14

.

Science

unit.

per

.

convertible non-

6%

incident to mining operations.

Harney Hotel, Rapid City, S.
Brickley, same address.

;

-

of

itock (par 10 cents). Price—25 cents per share.

Co., Inc., New York City.
,

share).

of

Price—$1

working

Summit Springs Uranium Corp., Rapid City, S. D,

Sept. 30 filed 325,000 shares'of capital stock (par $1).
Wee-To be supplied by amendment. Proceeds — For
prepayment of outstanding 5%% sinking fund bonds due
1970; balance for general corporate purposes, including
additions and improvements and working capital. Under¬
&

per

-

Travelfares, Inc., Seattle, Wash.

Oct. 3 (letter of notification) 1,200,000 shares of common

Sayre & Fisher Brick Co., Sayreville, N. J.

soon.

each

,

-

lishment of additional offices;

stock to be offered for subscrip¬
stockholders on the basis of one pre¬

for

of each class of stock.

(letter of notification)

ceeds—For

Proceeds—For construction and op¬
extraction plant. Underwriter—To
be named by amendment. L. D. Sherman & Co., New
York, handled common stock financing in August, 1954.
eration

new

Barrett Herrick

share

($2

par

facilities; to pay off notes; and
for working capital. Underwriter—None.
'

Offering—Expected

shares

600,000

.

vertible debentures, series A, due Sept. 1, 1965 and 24,700 shares of common stock (par 10 cents), to be offered
In units consisting of $1,000 of debentures and 100

Finance Co., Inc.

by common

ferred

stockholders

—

Sept. 29

cumulative preferred

Hotel, Inc., Las Vegas, Nev.

—For construction of

filed

share

one

Traveler Publishing Co.,

Sulphur Exploration Co., Houston, Texas
21

■;/'

,

and for common, $12.50 per
sale of preferred, for working

Nov.

Underwriter—None.

capital. Office—5225
Blvd., Los Angeles, Calif. Underwriter—None.

one

For

Nov. 9 filed

writer

of

.

par;

From

Sept 9 (letter of notification) 3,000,000 shares of capital

(par

(par $1).

share. Proceeds—
capital; from sale
of common, to Pauline Phillips Stone, a director, who is
the selling stockholder.
Office—910 So. Tryon St., Char¬
lotte, N. C.
Underwriter—R. S. Dickson & Co., Inc.,
Charlotte, N. C. Offering—Expected this week.

at

—

Daderwriter—Shelley-Roberts & Co., Denver, Colo.

7.v-"'\

W. Va. '7,

Nov. 14 (letter of notification 45,000 shares of 8% cumu¬
lative preferred stock
(par $1) and 45,000 shares of
class A common stock (par $1) to be offered in unit*

(letter of notification) 9,000 shares of 6% cumu¬
lative preferred stock
(par $25) and 6,000 shares of
class A common stock (par $5).
Price—For preferred,

share.

Clarksburg,

diversi¬

Incorporated,

,

Trans-American Development Corp.

Underwriter—Cavalier Securities Co., Washing¬
D. C.
7-77:777.v7/7v7::77;>;:
(E. B.)

non-textile

(letter of notification) 2,000 shares of common

"Trail-Craft."

Dec. 8

assessable

—

and

penses.

ton,

finance

Price—$25 per share. Proceeds—To re¬
indebtedness, finance promotion and advertising,
defray expenses of sales management and operating cap¬
ital re. development of an amphibious trailer known as

(letter of notification) 300,000 shares of common
Price—$1 per share. Proceeds—For mining ex¬

Nov. 9

Aug. 19

ceeds

A

.

,

Price—To be supplied by \

1, 1971.

duce

Calif.

,

Jan.

Proceeds—To

Proceeds—For

San Francisco, Calif.

Co., inc.,

20

;

(1/24)

stock (no par).

—

Stone

stock

Dec.

Offering-

$30,000,000 of 5% convertible subordinated

due

★ Trail-Craft Corp.,

$11 per share. Proceeds —To repay bank loans
and for new construction. Underwriter—First California

J San Juan Uranium Exploration, Inc.

per

capital expenditures

44,208 shares of common stock

filed

23

Dec.

cents), of which 3,800,000 will be represented by 3,000,000
voting trust certificates and 800,000 warrants. These of¬
ferings are to be made in two parts: (1) an offering, at
50 cents per share, of 200,000 shares for subscription by
stockholders of record April 30, 1955, on a two-for-one

public offering of 3,000,000 shares, to be
represented by voting trust certificates, at 58.8235 cents
per share. Proceeds—For racing plant construction. Un¬
derwriter—None. Hyman N. Glickstein, of New York
City, is Vice-President. r

For

Southwest Gas Corp., Barstow,

Inc., Puerto Rico.

a

—

Inc.

.

working capital. Underwriters—Johnston, Lemon & Co.,
Washington, D. C., and Union Securities Corp., New York.

Sept. 27 filed 4,000,000 shares of common stock (par 50

basis; and (2)

Proceeds

amendment.

Underwriter—None.

Ave,, Baltimore, Md.

due

bentures

products and working capital re. manufac¬
ture and sale of electrical controllers.
Office—2313-2315

*

fication program. Underwriter—Blair & Co
New York.
-7:' .•'

Bladensburg, Md. (1/24)
$1,250,000 of convertible subordinated de¬
Feb. 1, 1966.
Price — To be supplied by

29 filed

Dec.

new

Homewood

debentures
amendment.

* Southern Oxygen Co.,

(letter of notification) 6,935 shares of common
stock (par $10) to be offered for subscription by stock¬
holders.
Price—$14 per share.
Proceeds—For develop¬
Dec. 20

ment of

Dec. 29 filed

Sept. 14 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For expenses incident to mining activities.
Offices—
Healey Building, Atlanta Ga., and 4116 No. 15th Avenue,
Phoenix, Ariz. Underwriter —Franklin Securities Co.,
Atlanta, Ga.
;; -•;/.y\,■
=:•

common

stockholders

to

offered

B

(1/31)

Southern Mining & Milling Co.

5,883 shares

Corp.

200,000 - shares

* Textron American,

Rogers Corp., Rogers, Conn.
Oct. 3 (letter of notification) a minimum of
and a maximum of 7,453 shares of class

30

writer—Dillon, Read & Co., Inc., New York.
Expected sometime in January.

for expansion and working
Milton D. Blauner & Co., Inc.,

used

be

Underwriter

filed

of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—Toward redemption of presently outstanding
190,000 shares of 5.50% first preferred stock. Under¬

(par 25

;

1956

•

«•'.

/,

Techbuilt

•'

"

..■

...

'

Homes, Inc., Cambridge, Mass. ;(lj/6)>

(letter of notification) $300,000 of 6% convertible
debentures due Dec. 15, 1965. Price—100% of principal
amount. Proceeds—For working capital and other Igeneral corporate purposes.
Office—55 Brattle St., j Cam¬
bridge, Mass. Underwriter — Aetna Securities Corp.,
New York.
/
* '
%
Tenison

Mining Corp.

7

.

x

...

J

Underwriter—Honnold & Co.,

Denver, Colo.

same

city.

,'i i'.-,.y

,■

Dec. 9

U. S. Automatic Machinery & Chemical Corp.
Nov.

4

(letter of notification) 300,000 shares of class A
stock (par 10 cents). Price—$1 per share. Prd-i
For general corporate purposes.
Office—8620

common

ceeds

—

Montgomery Ave., Philadelphia, Pa. Underwriter—Co¬
lumbia Securities Corp., 135 Broadway, New York. Of¬
fering—Expected some time in January, 1956.
Universal Service

Drilling Co., Inc., Billing^, Mont.

Dec. -12 filed 400,000 shares of common stock

Union Gulf Oil &

Sept. 9 (letter of notification) 600,000 shares of common
•tock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses. Office—510 Colorado Bldg.,

(par 100).

July 8 filed

Price—$1 per share.
Proceeds—For drilling test costs,
payment of notes and accounts payable and loans and
for general working capital.
Underwriter — Carroll,

mills).

Kirchner & Jaquith, Inc., Denver,

Postponed.

Colo.

Corp., Inc., Houston, Texas

500,000 shares of

common

stock

'•*

(par two

Price — $2.50 per share. Proceeds — For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes.
Underwriter — None.
Offering —

Sears &

Texas

Silver Creek Precision

Dec. 12

£tpck
To

&

Corp.

Nov.

(letter of notification) 13,333 shares of

(par 40 cents).

Price—$1

selling stockholder.

Co., Inc., New York.




per

Underwriter

share.
—

common

Proceeds—>

Weill, Blauner

mon

3

American

(letter of

stock- (par 10

Oil

cents).

Proceeds—For drilling

600,000

Price

expenses,

tral Bldg., Midland, Tex.
& Co., Inc., Houston,

Utah-Arizona Uranium,

Corp.

notification)

Tex.

—

shares

50 cents

of

com-

share.

per

Office—216 Cen¬

etc.

Underwriter—Kramer, Wood*
*

■

:

Inc., Salt Lake City, Utah

Aug. 1 (letter of notification) 600,000 shares of
•tock

common

Price—50 cents per share. Pro¬
incident to mining activities. Office
—Greyhound Terminal Building, West Temple & South
(par 16% cents).

ceeds—For expenses

Temple

Streets, Salt Lake City, Utah. Underwriter—
Brokerage Co., New Orleans, La.

Trans-Western

Volume 183

Number 5496

Utah Granky

...

The Commercial and Financial Chronicle

Zenith-Utah Uranium Corp.

Inc., Reno, Nev.

Aug. 15 (letter of notification) 270,000 shares of capital
ftock.

(101)

Price—At par ($1 per share).

Proceeds—For ex¬
Office—312 Bying-

incident to mining activities.
ton Bldg., Reno, Nev.
Underwriter—Lester L. LaFortune, Las Vegas, Nev.
penses

Du

Sept. 14 (letter of notification) 6,000,000 shares off class
A

-

stock.

common

Price—At par

(five cents). Proceeds
Office—45 East Broadway, Salt

—For

suance

mining expenses.
Lake City, Utah. Underwriter—Bel-Air Securities
Corp.,

.

«

same

city.

•

16

Price—$10

Laboratories, Inc. of 944,422 shares of common stock as
dividend, contemplates that additional shares will be
offered
&

Prospective Offerings

share. Pro¬

per

ceeds—To repay outstanding notes and bank borrowings,
and for working capital. Office—950—56th St., Oakland

★ Alabama Power Co.

Underwriter—Wilson, Johnson & Higgins, Inc.,
San Francisco, Calif.
Wagon Box Uranium Corp., Provo, Utah

five

Dec. 14 it

■;.

filed

21

2,000,000 shares of common ^stock (par
Price—25 cents per share.
Proceeds—To

cents).

explore and acquire claims, for purchase of equipment
and for working capital and other corporate purposes.
Underwriter—H.

.

•

,

Investment

Co.,

Provo,

'r

.

Utah

„

and

/

if War Bonnet Uranium & Mining Co., Inc.
Dec. 21

(letter of notification) 50,000 shares of common
At par ($1 per share).
Proceeds — For
uranium exploration and development.
Office—Lander,

Wyo.

Price

stockholders.
This offering will be un¬
Kuhn, Loeb & Co. and Van Alstyne, Noel

Co.

handled

nancing

Du

Mont Laboratories class A stock fi¬

ago.
Stockholders of Laboratories
Oct.. 10 approved formation of Broadcasting firm. "

on.

some

years

(3/15)

announced company

was

,

P.

Honolulu, Hawaii. y/

stock.

its

to

Duquesne Light Co.
i
plans to issue and sell "
Nov. 28, it was announced SEC has authorized Standard
$14,000,000 of first mortgage bonds. Proceeds—For con¬
Power. & Light Corp. to sell not more than 10,000 shares
struction program.
Underwriter—To be determined -by
of the common stock of Duquesne Light Co. on the Nev/
competitive bidding. Probable bidders: Halsey, Stuart &
York
Stock Exchange by negotiated sale to a pur¬
Co. Inc.; Blyth & Co., Inc. and
Kidder, Peabody & Co.
chaser who will buy at the prevailing market
prices,
(jointly); Lehman Brothers; Equitable Securities Corp.,
less a discount of not more than 50 cents per share.
;
Union Securities Corp. and Drexel & Co. (jointly); The
First Boston Corp.; Morgan Stanley & Co.; Harriman
Federal Pacific Electric Co.
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly). "
Dec. 13 it was announced directors are considering an
Bids—Expected to be received on March 15. Registration 1
issue
of subordinated income
debentures
or
possibly
—Planned for Feb. 17.
?
preferred' stock, together with common stock purchase
Automatic Washer Corp.
warrants.
Proceeds
About $2,000,000, together with
Dec. 5 it was reported company plans early registration • $2,000,000 from private sale of notes, to repay bank
loans.
Underwriters—H. M. Byllesby & Co. (Inc.) and
of 250,000 shares of common stock (par
$1.50). UnderHayden, Stone & Co., New York.
writer—Cohen, Simonson & Co., New York.
>

8, Calif.

Nov.

announced that corporation, following is¬
2 to stockholders of Allen B. Du Mont

Dec.

on

derwritten.

30,000 shares of class A

(letter of notification)

cumulative convertible stock.

Broadcasting Corp.

was

a
.

Vacu-Dry Co., Oakland, Calif.
Dec.

Mont

Aug. 10 it

^

,

,

—

—

Underwriter—None.

45

,

,

.

■

Warrior

Mining Co., Birmingham, Ala.

Bangor & Aroostock RR.,

Sept. 29 (letter of notification) 6,000,000 shares of non¬
assessable common stock (par one cent). Price — Five
cents

share.

per

Proceeds

—

Dec.

it

19

-early next

♦

For

expenses incident to
Title Guarantee Bldg.,

announced

was

company

-29,762 shares

year

,

of

may

12 it was reported early registration is expected
159,000 shares of common stock.
Price — Probably
$5 per share. Underwriters^—Fairman, Harris & Co., Inc.,
and Straus, Blosser & McDowell, both of Chicago, 111.

issue and sell
stock

common

to

of

its

stockholders

who will vote Jan.
17
on
approving a
refinancing program.
Proceeds — Together with funds
Birmingham, Ala. Underwriter—Graham & Co., Pitts¬
from private sale of $8,000,000 new 4V4%
prior lien
burgh, Pa. and Birmingham, Ala.
'-bonds, to redeem $10,400,000 outstanding 4J/2% first
v
mortgage bonds. Underwriter—May be The First Boston
Western Greyhound Racing, Inc. (2/13-17)
.Corp., New York.
Dec. 19 filed 1,950,000 shares of common stock (par one
Central Power & Light Co. (2/14)
cent), of which 1,800,000 shares are to be offered pub¬
licly. Price—$1.25 per share. Proceeds—To purchase as¬
Dec. 20 it was reported company plans to issue and sell
sets of Arizona Kennel Club, and for working capital
T $10,000,000 of first mortgage bonds due 1986. -Proceeds

mining activities.

Office

—

718

Florida Power Corp.

April 14 it
between

>

and other

general corporate purposes. Office—Phoenix,
Underwriter—M. J. Reiter Co., New York. /

Ariz.

Western

States

tures

due

Jan.

1966, and 105,000 shares of common
to be offered in units of $50 of
shares df stock." Price—$52.50 per
unit. /Proceeds—For construction and installation of a

stock

.

1,

(par 25

debentures

cents)

and

Probable

bidders:

Brothers

and

Halsey, Stuart & Co. Inc.; Lehman
Glore, Forgan & Co.* (jointly); Kidder,
Peabody & Co.; Union Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane and -Salomon Bros. & Hutzler
(jointly).; The First Boston Corp.; Kuhn, Loeb & Go.
Bids—Expected to be received up to noon (EST) on
Feb. 14.
y i
* • J'•

Refining Co.

2

five

Houdriformer

General
Dec.

cracking unit;, expansion of refinery;! to
i
-Chemical Corn Exchange Bank, New York '
outstanding obligations; and for working capital.
Office—North Salt Lake, Utah.
Underwriter—J. Barth «' Dec. 8 it was announced stockholders will vote
Jan. 17
& Co;, San Francisco, Calif. Offering—Expected in Jan¬
"/on approving a proposal to offer to stockholders 590,425
uary.
additional shares of capital stock on a l-for-8 basis.
Underwriters

$12,000,000

first

of

mortgage

20 it

Telephone Co. of California
was

.

announced

(1/30

-

2/3)

company

unexchanged stock:to be offered publicly. Price—$20.50
share. Proceeds—Together with funds from, private
sale of $15,000,000 of debentures and $5,000,000 of notes,
to retire any 5% preferred shares not presented for ex¬
change; and to pay for expansion program. Underwriters
—Paine, Webber, Jackson & Curtis, New York, and Mitchum, Jones & Templeton, Los Angeles, Calif. Registra¬
tion—Expected Jan. 9.

per

Kuhn, Loeb & Co.; The First Boston
Corp.; Hemphill, Noyes & Co. and W. C. Langley & Co.
—

^Chicago, Burlington & Quincy RR.

and

has applied to the
California P. U. " Commission for permission to issue
718,862 shares of 4-%% preferred stock (par. $20), to be
first offered in exchange for 5% preferred stock (par
$20) of which there are outstanding "1,437,724 shares;

:

repay

Wonder Mountain Uranium, Inc., Denver, Colo.
Aug. 12 (letter of notification) 2,380,000 shares of com¬
mon stock
(par one cent).
Price—10 cents per share.
Proceeds
For expenses incident to mining activities.

announced company may issue and sell

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Kidder, Peabody & Co. and Merrill Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth &
Co., Inc. (jointly): Glore. Forgan & Co.: and The First
Boston Corp. Offering—Expected early in 1956.

repay'bank loans and for construction program.
Underwriter—To be determined by competitive bidding.

Dec., 14 filed $1,050,000 10-year 6% sinking fund deben¬

was

$10,600,000

bonds. Underwriters—To be determined by competitive

-

—To

<

_.

Flo-Mix Fertilizers Corp., Houma, La.

Dec.

(1/18)

—

Office—414

Denver

Nat'l

Bldg., Denver, Colo.
writer—Floyd Koster & Co., Denver, Colo.

Bids

Under¬

expected to be received by the company on

are

about Jan. 18 for the purchase from it of about

equipment trust certificates.
Woods

Oil

& Gas

Co., New Orleans, La.
Aug. 29 filed 250,000 shares of common stock (par $5).
Price—$8 per share. Proceeds—For retirement of debt;
revision
of
corporate structure,
etc. Underwriter —
Straus, Blosser & McDowell, Chicago, 111. Offering—To

Nov.

be withdrawn.

additional

Stuart & Co.

Atlanta, Ga.

stock.

—For

Price—At par (10 cents per

mining

shares

Office—Virginia Truckee Bldg.,
Underwriter—Cayias, Larson, Glaser,
Emery, Inc., Salt Lake City, Utah.

Wy-Cal Uranium Enterprises, Inc., Lander, Wyo.
Dec.'6 (letter of notification) 273,000 shares of capital
stock (par 50 cents). Price—$1 per share.
Proceeds—
For mining operations.
Office—268. Main St., Lander,
Wyo.
Underwriter—Valley State Brokerage, Inc., 2520
South State St., Salt Lake City, Utah.

cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the
of certain

uranium properties, and in exchange
working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬
ceeds—To acquire properties. Underwriter—None.

for such

Wyoming-Gulf Sulphur Corp.

count

and

271,000

stockholders.

shares

for

capital
are

stock (par
for company's

account

of

two

10
ac¬

selling

Price—On the over-the-counter market at

then

prevailing price, but not less than $2 per share.
Proceeds—For auxiliary equipment for Cody
plant, for
acquisition of additional site, and related activities.

held

as

Co.

of

of Jan.

one

the

stock
new

sale

of

(par $10)
share

for

100,000

to

stock¬

each

nine

20, 1956

Refining Co.

(1/23-27)

&
*

Co., Milwaukee, Wis.
Consolidated

Dec.
/new

-

21- it

Freightways, Inc.
announced

was

common

corporation

plans

to

offer

shares to preferred stockholders at market

prices payable with funds to be received March 15, 1956
from the redemption of the preferred stock. Underwriter
—Probably Blyth & Co., Inc., San Francisco, Calif. "
Dallas

Power &

Light Co.

(2/15)
plans to issue and sell
$10,000,000 of first mortgage bonds. Proceeds—To repay

.Nov. 28 it

bank

was

reported

loans and for

company

construction.

new

Underwriter—To

be determined by

competitive bidding. Probable bidders:
Halsey,'Stuart & Co. Inc.; The First Boston Corp.; Salo¬
mon Bros. & Hutzler; Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Union Securi¬
ties Corp.; Equitable Securities Corp.; Lehman Brothers;
Blair-& Co. Incorporated.
Bids—Tentatively scheduled
for Feb.

Power

&

ceeds—For

writer—None.

Yellowknife Uranium Corp.
Aug. 19 filed 1,000,000 shares of common stock (par one
cent), of which 700,000 shares are to be sold for account
of company and 300,000 shares for account of Stancan
Uranium Corp.
Price—$1.50 per share.
Proceeds—For

payments under purchase and option agreements for
claims; for working capital and reserve funds; and for
general corporate purposes.
Office — Toronto,
Canada. Underwriters—Gearhart & Otis, Inc. and F. H.

other

Crerie &

Co., Inc., both of New York City.
Indefinitely postponed.




Offering—

construction

Underwriter—To be
determined by competitive bidding.
Probable bidders:
W.
C.
Langley & Co. and Union Securities Corp.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Carl M. Loeb, Rhoades
& Co.; Blyth & Co. Inc. and The First Boston Corp.
(jointly); White, Weld & Co. and Shields & Co.(jointly);
program.

Lehman Brothers.

Nov.

to

15

it

was
a

purchase

Allen &

Oct.

31

reported company may sell early next
$30,000,000 of bonds. Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Smith, Barney & Co., Lazard
Freres & Co. and Blyth & Co., Inc. (jointly); Lehman
Brothers, Union Securities Corp. and Salomon Bros. &
Hutzler (jointly); Kidder, Peabody &
Co.; Equitable
Securities Corp.
Offering -r Expected in February or
it

was

year about
determined

March.

announced

future date to

its

Dolly

Co., New York.

Nov.

it

28

Pulp & Paper Corp.
was

in

financing

reported company may do some public

connection with proposed

newsprint mill,

which, it is estimated, will cost about $25,000,000. Under¬
writer—Lee Higginson Corp., New York.
Inland Steel Co.
Nov.

3, Joseph L. Block, President, announced that a
portion of the required funds for the com¬

substantial

pany's expansion program (estimated to cost approxi¬
mately $260,000,000 for three-year period 1956-1958)
will be derived from retained earnings and depreciation
reserves.

to

secure

However, he stated, it will also be necessary
large portion through public financing. It is

a

a major part will be in the form of debt
No such financing is contemplated during the
nor have the times or methods of financ¬
ing been definitely determined. Underwriter — Kuhn,

quite likely that

Dolly Madison International Foods Ltd.
intends at

'

t

Houston Lighting & Power Co.

Hudson

of

Seattle, Wash., and members of his family. Under¬

.

16 it was reported company may issue and sell
$10,000,000 first mortgage bonds if market condition!
permit. Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Lehman Brothers; Merrill Lynch, Pierce, Fenner
&
Beane and White, Weld & Co. (jointly); Salomon Bror.
& Hutzler and Union Securities Corp. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co. (joint¬
ly); Stone & Webster Securities Corp.

15.

Delaware

/

May

reported company plans early registration
of about 90,000 shares of convertible preferred stock
(par $20) and some common stock. Underwriter—Loewi
was

common stock (par $1).
Price—At the market. Proceeds—To August Buschmann,

Sept. 29 filed 254,000 shares of

tion—Planned for March 2.

Gulf States Utilities Co.

Light Co.
Sept. 28 it was announced that the company expects to
undertake some common stock financing early in 1956,
probably first to stockholders (this is in addition to bond
and preferred stock financing planned for Dec. 13). Pro¬

Wyton Oil & Gas Co., Newcastle, Wyo.

Inc.; Morgan, Stanley & Co.; The First Boston Corp.;
Co. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc.; Lehman Brothers; Blyth &
Co., Inc. and Kidder, Peabody & Co. (jointly); Union
Securities Corp. and Equitable Securities Corp. (jointly).
Bids—Expected to be received on March 29. Registra¬
Shields &

common

basis

Clark Oil &

Dec. 14 it

Wycotah Oil & Uranium, Inc., Denver, Colo.
Nov. 10 filed 1,500,125 shares of common stock (par one.

the

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart 6z

Bank,

recommended

shares of

on

was

struction program.

(1/20)

directors

(3/29)

announced company

plans to issue and sell
$16,000,000 of first mortgage bonds. Proceeds—For con¬

Halsey,

(subject to approval of
stockholders in January)# Price—$30 per share.
Pro¬
ceeds—To increase capital and surplus.

expenses.

Oct. 10 filed 971,000 shares of
cents), of which 700,000 shares

the

holders

City, Nev.
shares of com¬
share). Proceeds

Carson City, Nev.

owners

8

bidders:

Dec. 14 it

Inc.; Salomon Bros. & Hutzler.

Citizens & Southern National

Woodstock Uranium Corp., Carson
Nov. 21 (letter of notification) 3,000,000
mon

Probable

ic Georgia Power Co.

or

$7,000,000

that

Foremost

Dairies, Inc.

give its stockholders the right
Madison stock.
Underwriter—■»

financing.

current year,

Loeb &

Co., New York.

Continued

on

page

46

46

The Commercial and Financial Chronicle...

(102)

Continued

from

of

(2/27)

sell
$7,000,000 of first mortgage bonds due 1986. Proceeds—
To repay bank loans and for construction program. Un¬
reported company plans to issue and

was

derwriter

^

&

Co.

(2/27)

reported company plans to issue and sell ■ '

was

200,000 additional shares of common stock. Proceeds— ;
bank loans and for construction program; Un¬
derwriter
To be determined by competitive bidding.

To repay

—

Goldman, *
Sachs & Co. (jointly); Merrill Lynch, Pierce, Fenner &
Beane, Kidder, Peabody & Co. -and White, Weld & Co.
(jointly); Lehman Brothers; Union Securities Corp. Bids
—Expected to be received up to 11 a.m. (EST) on Feb.
bidders:

Probable

Co.

&

Forgan

Glore,

and

Registration—Scheduled for Jan. 27.

27.

^

Kimberly-Clark Corp., Neenah, Wis.
Nov. 22 it

announced that the

was

ther financing, the

company

tion to

plans fur¬

nature and extent of which has not

sell additional

common

Proceeds—To

stock.

York.

.■

;

c,

'

■

Bids

offering

proposed

on

tional

of

shares

basis.

to.' stockholders of 100,000 addi¬
stock (par $20) on a l-for-4

Dec, 19 it

during

Light

Co.

petitive

announced company plans some financing

was

(probably bonds). Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Equitable
Securities Corp. and Union Securities Corp.1 (jointly);.
Salomon
Bros.
&
Hutzler; White,:j'Weld & Co. ahd
Shields & Co. (jointly); Merrill Lynch, Pierce, Fenner
& Beane, Kidder, Peabody & Co. and Harriman Ripley
& Co. Inc. (jointly); The First Boston Corp. and Glore,
Forgan & Co. (jointly).
1956

v.,

,

,

Dec. 12 it

was

approving

reported stockholders will vote Jan. 10

on

proposed offering to stockholders of 150,000
additional shares of capital stock.
Price—$25 per share.
Underwriters—Rauscher,. Pierce & Co., Inc., and First
Southwest Co., both of Dallas, Texas.

^Mississippi Power Co.
Nov.

sell

it

3

announced

was

(3/1)

^
plans

company

to

issue

and

$4,000,000 of first mortgage bonds and 40,000 shares
(par $100). Proceeds—To repay bank

of preferred stock
loans and for

construction.

new

determined by

Underwriters

competitive bidding.

—

Probable

To be

bidders:

(1) For bonds—Halsey, Stuart & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane; Lehman Brothers; Kidder, Pea¬
body & Co.; Union Securities Corp., Equitable Securities
Corp. and Drexel & Co. (jointly).
(2) For preferred
stock—W. C. Langley & Co.;
Glore, Forgan & Co. and
Sterne, Agee & Leach (jointly); The First Boston Corp.;
Blyth & Co., Inc.; Kidder, Peabody & Co. and White,
Weld & Co. (jointly). Bids—Expected to be received on

March 1.

Registration—Planned for Feb. 3.

Modern Homes Corp.

20

j

Offshore

authorized

(2/29)

'

*

more

or

sale

of

1,
Proceeds—

18

David

C.
an

Commission

for

certificate

a

of necessity to
pipeline off-shore the

364-mile submarine

gas

Sabine

the

River

to

the

Gulf

build

of

Coast

of

it

21

was

reported

company

stock.

Business

—

Manufactures

may

offer

publicly

and

some

common

prefabricated

homes.

Offices—Dearborn, Mich., and Port Jervis, N. J. Under¬
writer—Probably Campbell, McCarty & Co., Inc., De¬
troit, Mich.

,

+ Narragansett

stock).

Underwriter—Salomon Bros. & Hutzler,

Pennsylvania Electric Co.
was

reported

$25,000,000

of

first

bonds.

Proceeds'

To repay
bank loans and
for new
construction.'
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First
Boston Corp.; Kuhn, Loeb &
Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley &

was

Electric

plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kuhn,
Loeb & Co.; Salomon Bros. &
Hutzler; White, Weld &
Co.; Blyth & Co., Inc. and Harriman Ripley & Co. Inc.
(jointly); Union Securities Corp.; Kidder,
Peabody &
Co. and Stone & Webster
Securities Corp (jointly); Leh¬
man Brothers and
Goldman, Sachs & Co. (jointly). Bids
—Expected to be received sometime in
March, 1956.

it New
Jan.

3

England Electric System
it

was

announced

company

plans to offer to its

stockholders 834,976 additional shares
of common stock
on the basis of one new
share for each 12 shares held.

Underwriter—To be determined by
competitive bidding.
Probable bidders: Blyth &
Co., Inc., Lehman Brothers
and Bear, Stearns & Co.
(jointly); Carl M. Loeb, Rhoades
f2. 9°;' Ladenburg, Thalmann & Co. and Wertheim & Co.
(jointly); Merrill Lynch, Pierce, Fenner &
Beane, Kid¬
der, Peabody & Co. and
White, Weld & Co. (jointly)
Bids—Expected sometime in
May, 1956.
•

New

i?n'nnnn/5;as
5n?.ou?ced
$10,000,000 of first




company plans to issue and sell

mortgage

by competitive bidding. Probable bid¬
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, Forgan & Co. (jointly); Kidder, Peabody &
Co.;
The First Boston
Corp.; Smith, Barney & Co.; Harriman
Ripley & Co. Inc. Bids—Expected Feb. 15.

Pigeon Hole Parking of Texas, Inc.

bonds

during

October

22

it

was

announced

that

about

shares of

additional capital stock would be offered for
public sale
after the first of next
year.
Proceeds — Estimated at
about $2,000,000, will be used to
pay for expansion pro¬
gram.

announced company

Stockholders

Underwriters—Porter, Stacy

and Muir Investment

& Co., Houston, Tex.;
Corp., San Antonio, Tex.

•

plans

a

public offer¬

a

issue of second

new

Feb.

on

7

will

Oct.

17

it

$600,000 of

was

Co.

(2/28)

was

able bidders:

Halsey, Stuart & Co. Inc.; The First Bostor
Corp.; Union Securities Corp.; Kuhn, Loeb & Co., Leh¬
Brothers and Blyth & Co., Inc.
(jointly); Hemphill
Noyes & Co. and Drexel & Co. (jointly); Kidder, Pea¬
body & Co. and Merrill Lynch, Pierce, Fenner & Beant
(jointly); Harriman Ripley & Co. Inc. and Stone. &
Webster Securities Corp. (jointly). Bids —
Tentativelj
man

"

scheduled

for

Oct.

11

Feb.

28.

Industries, Inc.

stockholders

shares of

new

authorized

common

stock

a

(no

issue

new

par

common

New York.

company plans to sell about
stock.
Underwriter—Bache & Co.,

19

it

share.

and

Proceeds—For

Texas Utilities Co.

of

(1/31)

18, the directors authorized the sale of additiona
common

stock to raise

approximately $15,000,-

Proceeds—For further investment in

subsidiaries

and

derwriter—To

be

for

other

common

corporate

determined

by

announced

that

competitive

may

do

some

financing in 1956 in connection with its proposed ex¬
pansion, costing about $23,500,000. Underwriter—Mor¬
gan Stanley & Co., New York.

Un¬

bidding

immediately after the New Year.
National Bank

Nov. 29 directors authorized

(1/12)

offering to stockholder!

an

of 60,000 additional shares of capital stock
(par $10) or
the basis of one new share for each 10 shares held Jan

11, 1956; rights to expire
per

share.

Office

—

on

or

about Feb. 1.

Memphis, Tenn.

to

Jan.

vote

11

on

Price—$31

Underwriter

—

Meeting-

increasing authorized

capital stock from $6,000,000 to $7,000,000.

21

and sell
company

stock!

purposes.

bidders: Kidder, Peabody & Co. and Merril
Lynch, Pierce, Fenner & Beane (jointly); Union Secu¬
rities Corp.; Lehman Brothers and Bear, Stearns & Co
(jointly); The First Boston Corp. Registration—Expecte(

Westcoast

was

30,001

initially issue 10,000 shares bearing a $!
having a redemption value of $105 pel
expansion program. Underwrite!
—Rauscher, Pierce & Co., Inc., Dallas, Tex.
dividend

Nov.

Plantation Pipe Line Co.

of

value), of whicl

it is planned to

Stockholders

reported

or

White, Weld & Co. (jointly).
Service

Equitable Securities Corp., Nashville, Tenn.
Pike County Natural Gas Co.

vote

an

Union Planters

800,000

Co.

company

reported company plans to issue anc
sell $10,000,000 first
mortgage bonds due 1986. Proceed*
—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive
bidding. Prob¬

Probable

determined

Oct.

was

it

be

Dec.

England Power Co.

28

000.

ders:

Power

announced

Electric

shares of

(2/15)

ne

second preferred

reported company proposes issuance and
sale of $9,000,000 of preferred stock
early next year.
Proceeds—For construction program.
Underwriter—To

was

one

York; Wiliam R. Staats & Co., Los Angeles, Calif,
California Co., San
Francisco, Calif. -Bon
be placed privately.

Nov.

Co.,

Pennsylvania Electric Co.

Co.

of

First

Texas

Nov.

announced company

basis

authorized issue of 1,000,060 shares of thii
stock, which would be issued fronr,
time to time, in series. Underwriters—Stone & Webstei

new

Bids—Expected Feb. 15.

,

the

on

stocks). Proceeds—For construction pro¬
Underwriters—For stocks: Hornblower & Weeks

Texas

plans to issue and sell

mortgage

India*

common

approving

(2/15)

company

the

held.

ing in the first quarter of 1956 of

plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities
(probably
notes, convertible into preferred stock at maturity, and

Dec. 19 it

Jan. 3 it

Nevada

was

preferred stock.

Mississippi. It is estimated that this gather¬
ing system will cost approximately $150,000,000. Type
of financing has not
yet been determined, but tentative

Inc.

it

Dec. 29 it

.

the State of

New York.

stock

shares

it Tennessee Gas Transmission Co.

a

coast

(2/23)

from

authority to offer to its oommo
Feb. 21, 1S56, an additional
83,,1

common

11

permission

u

Bintliff, President, announced com¬
application with the Federal Power

Louisiana from

common

of

Securities Corp. and

has filed

about

$1,000,000 of convertible debentures

New

Bids—Expected to

—

Nov.

and

gram.
„

about Feb.

than 40 years.

an-

plans to sell in 195(
approximately $10,000,000 of new securities-(probablj
$7,000,000 first mortgage bonds and $3,(100,000 preferrec

v

may

and

for

of record

Southern

and

on

shares

Nov. 7

(1/31)

issuance

the

Commission

Gathering Corp., Houston, Texas

Nov.

bank loans

pected about Feb. 2.

about Jan. 31.

pany

Dec. 19 it

(Mich.)

(Minn.)

Inc.; Morgan Stanley & Co.
or

Co.

Rights are to expire oi
March 8. Underwriter—Smith, Barney &
Co., New York
underwrote previous rights offering.
Registration—Ex

bank loans and for improvements and addi¬
property. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
on

Edison

sought

company

share for each

to

be received

California

New York, wh<
preferred issue

new

Proceeds—To retire outstanding

20

S.

030

Halsey,

retire

Co.

Corp.,

company

stockholders

Underwriter—To be determined by com¬
bidding.
Probable bidders: The First Boston

1956 and to mature in not

&

Securities

Expected during the first quarter of 1956.

reported that company plans to issue and
additional common stock, (probably first to

directors

Hunter

The
Offering

Inc.; Salomon Bros. & Hutzler.

$25,000,000 of debentures to be dated

tions

a

stock.

P.

Northwestern Bell Telephone Co.
Dec.

27

Dec.

bidders:

110,Ofy

stock

for construction program.
Underwriters—Probably
First Boston Corp. and Dean Witter & Co.

(1/25)

Probable

of

preferred

filed with the California P. U. Com1
mission an application for exemption from
competitive
bidding of a proposed new issue of cumulative preferre

du

Corp., Blyth & Co., Inc., and Kuhn, Loeb & Co. (jointly);.Lehman Brothers and Riter & Co. (jointly); Smith,
Barney & Co.; White, Weld & Co. and Glore, Forgan
& Co. Bids—Expected to be received on Feb. 29.
* :

To

Mercantile National Bank of Dallas

Dec.

stockholders).

>

by

Southern
-

was

sqme

issuance

convertible

Southern Indiana Gas & Electric Co.

Ry.

Northern States Power Co.

Dec. 12 it
sell

&

I.

authorized

cumulative

it is stated, will not underwrite the

are

Stuart & Co.

common

Power

Pacific

equipment trust certificates.

Underwriter—The First Boston Corp., New York.

Louisiana

handled

expected to be received by the company on or
about Jan. 25 for the purchase from it of about $5,500,000

announced stockholders will vote Jan. 25

was

Dealer-Manager—Francis

stockholders

of

(pa
Proceeds—For exnloration and drilling progra*
Underwriter—Previous common stock financing wa

etc.

Co., New York.

Northern

Lincoln Rochester Trust Co.
Dec. 19 it

interest.

30

$10).

mortgage bonds, series B, dated Jan. 1, 1956, in
exchange for present $69,179,300 of 4Vz% convertible
general income mortgage bonds, series A, due July 1,

1955

stock

shares

come

Pont &

V:'/\.

\

Aug.

a plan of exchange pro¬
viding for the issuance (a) of not exceeding $58,131,150
of new unsecured non-convertible 100-year 5% deben¬
tures, dated Jan. 1, 1956, in exchange for present $55,363,000 par v51ue 5% convertible preferred stock, series
A, on the basis of $105 of debentures for each $100 par
value of preferred stock, plus $5.25 in cash ($5 of which
will be paid as dividend on preferred for year
1955); and
(b) of $72,638,265 of new 5% non-convertible general in¬

include

be

(1/18)

offer its stock

Jan.

South Texas Oil & Gas Co.

York, New Haven & Hartford RR.

Dec. 21 "stockholders approved

used to pay for further expansion, estimated to cost an
additional $37,000,000. Underwriter—Blyth & Co., Inc.,
New

<

2022, on the basis of $105 of new series B bonds for each
$100 of series A bonds plus $5.25 in cash, which will

yet been determined, except it is not the present inten¬

record

before

or

capital

v

:

.

New
Dec. 27 it

on

Inc.; Salomon Bros. & Hutzler; Kidder, Peabody

& Co.

announced bank plans to

was

of

18, 1956, the right to subscrib
Feb. 24 for 100,000 additional shares
(par $20) on the basis of one new shar
for each eight shares held.
Price—To be not less tha
$85 per share. Proceeds—To increase capital and sur
plus. Underwriter—Blyth & Co., Inc., Seattle, Wash..

equipment trust certificates to mature Dec. 15, 1956Shops, Inc., a wholly-owned subsidiary,
with latter to ultimately offer the certificates through
competitive bidding. Probable bidders: Halsey, Stuart
1970 to Despatch

Registration—Scheduled for Jan: 27.

it Kansas Gas & Electric Co.

holders

000

Bids—Expected to be received up to 11 a.m. (EST)

Feb. 27.

on

Nov. 22 it

Nov. 28 company asked ICC for authority to sell $6,600,-

& Co.,.

Goldman, Sachs & Co. (jointly); Harriman Ripley

Seattle-First National Bank, Seattle

New York Central RR.

Corp. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly); Blyth & Co., Inc. and The
First Boston Corp. (jointly); Glore, Forgan & Co
and
rities

Inc.

expansion, which, it is estimated, will cost betwee
$9,000,000 and $10,000,000, part by private placement, an
part publicly. Underwriter—J. C. Wheat &
Co., Ric
mond, Va.

Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

& Co. Inc.; Union Secu¬

Probable bidders: Halsey, Stuart

Dec.

Lehman

by competitive bidding.

To be determined

—

Riverton Lime & Stone Co.,
Inc., Riverton, Va.
19 it was reported
company plans to finance i

tive

^ Kansas Gas & Electric Co.
Dec. 27 it

1956.

Underwriters—To be determined by competi¬
bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);

45

page

Thursday, January 5, 195

it

Transmission

was

publicly

reported
over

Co.,

company

privately.

issut

$20,000,000 of securities, probablj

in units of debentures and stock.
be placed

Ltd.

noW plans to

Bonds

Proceeds—For

new

are

expected tc

pipe line.

derwriter—Eastman, Dillon 8c Co., New York.

Un¬

Volume 133
'i

Number 5493

...

The Commercial and Financial Chronicle

(103)

M

^

Continued

from

8

page

taxi cabs here in New York

C|ty.

Many are being replaced by Fords,
Dodges and Plymouths.

NSTA Notes

New

Security

Association

Traders

Bowling League standing

Serlen

'■

New

York,

of Dec. 12, 1955 is

as

Team:

;

of

Inc.

offering out
of the way, January shapes up as
a
decidedly slow month in new

(STANY)

follows:

as

issue

Po/nts

(Capt.), Gold, Krumholz, Wechsler, Gersten

51

but that is not the

Krisam

(Capt.), Farrell, Clemence, Gronick, Flanagan

441/2

•Bradley

(Capt), C. Murphy, Vocolli, Rogers, Hunter

42i/2

Wall

401/2

from

The

Growney (Capt.),-Define, Alexander, Montanye, Weseman.

JVteyer (Capt.), Corby, A. Frankel, Swenson, Dawson, Smith
Manson

(Capt.), Jacobs, Barrett, Siegel, Yunker

Donadio

Leinhardt
Barker

Topol

(Capt.), Bies, Pollack, Kuehner,

38

___

36

Fredericks-.—

>

(Capt.), Bernberg, H. Murphy, Whiting, McGovanl

35

v

31

r

(Capt.), Gavin, Fitzpatrick, Valentine, Greenberg—

Kaiser

(Capt),

Kullman, Werkmeister, O'Connor,

Point

200

Club

Jack Manson

5

207

._

Joe

BOND

it

else

to

absorb

its

that

apparent

was

for

clear

the

huge

In

C

the

unani¬

were

time

interfere

rank

file

of

investment

it would be difficult to round

than

more

corporal's guard
other business

a

any

now

middle

the

and

month.

close

the

capital

their

and

a

will

he

of

following week will bring
to market, unless there is a change
in plans, Textron-American Inc.'s
$30 million of debentures with a
be

free

look

bear this out.

This

one

Pacific

Northern

lion

equipment

keep

the

for

big

calendar

interest

Marking,

President: Howard P.

&

;

latter

Meantime, there is
at

is

that week,

bids

while

--vV"-.-.''.-'■■■V/

issue of $25

lication

"padding"

orders

or

dup¬

Secretary: Leon A. Lascor, J. K. Mullen Investment Company.
Treasurer:

stock may have difficulty in keep¬

Peters,

Jr.,

W.

Peters,

Garrett, Bromfield &

Christensen;

Clark,

Bank.

-v■'-

National

Committeemen;

Company;

Roscoe

Donald

Patterson,

L.

Ayers,

John

&

Colorado

Amos

Sudler

C.

Investment

Company;

involved coincident with the oper¬

ations,the Securities' and Exchange - Commission has served
Robert L. Mitton Investments; Bernard Kennedy, Bosworth/Sul-;
^notice that it will be scrutinizing
livan & Company.
'"•./'.■/£
the Ford stock's reactions closely.
Company;

Robert

Mitton,

L.

•

:

Feb. 10, 1956
.

COMING
Investment

'

Boston

Security Traders

ciation

Asso"-!

annual winter dinner a:

the Parker House.

EVENTS
In

(Boston, Mass.)

March 2, 1956

Field

(Philadelphia, Pa.)

Investment Traders Association
of

Philadelphia

annual dinnei
at the Bellevue-Stratford Hotel
Jan. 27, 1956

(Baltimore, Md.)

Baltimore Security Traders As¬
sociation 21st annual Mid-Win¬
ter

Dinner

at

Southern

the

luncheon

a

to be held at 12

York

Association

30, 1956

Bond

(Chicago, 111.)

Traders

annual

Hotel.

dinner

Club
at

of

Chicago

the

Draki

.

Jan. 30, 1956

(Chicago, 111.)

National Security Traders Asso¬
ciation

National

Committer

Meeting at the Drake Hotel.

and

receptior

with

efforts

outright

naturally is
of

possibility

speculators

(New York City)

Security
30th

Dealers

a

Underwriters, with the same
in mind, have outlined a
strict code of procedure for their
staffs in handling the business and
purpose

seeking to limit individual in¬

annual

dinner

the Biltmore Hotel.

at

Oct.

24-27,

1956

(Palm

Springs

:i

Calif.)

each

if

possible.

Widest

obtain¬

able distribution is their aim.

will certainly not be affected ad¬
versely, to say the least, by the

continued reports that fleet owners

ciation

are

Nov. 3-6,

1957

Convention.

(Hot Springs, Va.)

finding

rolets

are

that currently

just not holding

National Security Traders Asso¬
ciation

Annual

cents

February 1, 1956, to share¬

on

holders of record at the close of
business

improvement program to
system. The Authority

000.000
its

water

also announced that effective Feb.

1, 1956 a new rate schedule de¬
signed to increase water revenues
by 38% would be
placed into

Chevup

as

Common &

improvements

planned

Paper Board Company, Inc.
day declared the following
45<!

making

up

record

on the 4%
Cumulative
are payable April 1,
stockholders of record
March 26, 1956.

Dividends

full

or

part

S 1215, Commercial & Financial

1956

to

Vice President and Secretary
December 13, 1955

Bogota, New Jersey

source

provement program will be com¬
pleted by the end of 1959.

«

Place, New York 7, N. Y.




THE

Chase
Manhattan
BANK

15,

three

expects to sell
early in 1956.

$3,000,000

NOTICE

Manhattan Bank

dividend of 55c

to

Bank,

share

on

payable February
at

the

January 13, 1956.

The transfer books will
connection

A

R

t

Ohio

bonds

Board

The

with

on

declared

a

not

be closed

payment of

this dividend.

November 30,
dividend

KENNETH C. BELL

the

on

out¬

common
shares of the
Corporation of fifty cents (50c)
per share, payable December 31,
1955
to
shareholders of record
at the close of business at the of¬
fice
of
the
Transfer Agent on

16,

1955.

Corpora¬
one-tenth
share for
share of the Cor¬

shares

tion

the

at

(1/1 Oth)

of

payable in

dividend

further

common

of

rate
a

common

the

of

common

outstanding has been
the Board, payable

by

16, 1956 to shareholders
record at the close of business
the
office
of
the
Transfer

January
at

Agent

on

The

1956.

January 2,

Board

Directors

of

has

also declared the regular

dividend
one-eighth
cents
(28l/ac) per share on all
outstanding preferred shares pay¬
able January 1, 1956 to all pre¬
of

twenty-eight

and

shareholders

of

record

at

the close of business at the office

of the Transfer

Vice President and Secretary

1955,

standing

ferred

the

of

Directors

of

Diebold, Incorporated, in a meet¬
ing held

of

per

holders of record

close of business

in

has de¬

12,000,000 shares of the capital
1956

0

the

be carried out over the
years.
In accordance
with this program, the Authority

a

p

Canton 2,

Brothers,

to

program
next

R

0

N

financial
Authority, have
recommended that the financing
advisors

stock of the

time

Chronicle, 25 Park

Stock

Preferred

the construction of a
of supply at Sturgeon
Point with an initial capacity of
16
million
gallons
daily.
The
Authority expects that the im¬
new

The Chase

1799'

payable

ber 28, 1955.

declared

-CHARTERED

are

1956 to stockholders of
the close of business Decem¬

at

poration

Exchange Ticker Tape to assist

quotation tables;

stock dividends

Common

January 15,

and

daily,

BANKING

the

Common Stock.

on

supply plant from 23 million gal¬
lons daily to 27 million gallons

clared

job. Please give full particulars in confidence. Box

share

per

50< per share on the 4%
Cumulative Preferred Stock.

December

read New York

Federal

has this
quarterly

dividends:

by

increase
capacity at its Woodlawn

the

of

Preferred Dividends:
of Directors of

Board

The

Robert A. Wallace

The

the Authority include the

Convention.

QUOTATION TABULATOR WANTED

in

Treasurer

.

FEDERAL PAPER BOARD CO., Inc.

each

American Stock

v

VINCENT T. MILES

effect.

DIVIDEND

or

January 13, 1956.

on

"

pro¬

DIVIDEND NOTICE:

WORLD WIDE

can

share payable on the
Company

Common Stock of. the

A

We have need for party that

quarterly dividend of 25

a

per

County Wafer

Lehman

Incidentally,
the forthcoming
offering of Ford Motor Co. stock

National Security Traders Asso¬
Annual

clared

,

The Erie County Water Author¬
ity (New York) announced Jan. 4
that it plans to undertake a $13,-

to

"free ride" in the event
that the operation presents the op¬
portunity for quick turn profits.
try for

are

noon.

the

vestors to not more than 200 shares

March 9, 1956

New

Hotel.

Jan.

with

The Federal agency

concerned
of

deben¬
for bids

new
up

Authority increases
water rates by 38%.

Recalling several similar offer¬
ings in recent years and the spec¬
tacular
behavior of the
stocks

&

an

gram.

Under Close Scrutiny

State

Telephone

million improvement

Gorham,

•

Alff,

Mullen

J.K.

Boettcher

H.

W.

<

Glen B.

Company;

Paul

be

on

STOCK

COMMON

The Board of Directors has de¬

First instalment of $13
:

market

ing
the
"when-issued"
completely orderly.

Argall, Boettcher & Company; Gerald

Writer &

will

DIVIDEND

$3 Million Bond Sale

suspected, it is pos¬
groups sponsoring the

sible

William

QUARTERLY

Authority Plans

intentions- of

their

LONG ISLAND LIGHTING COMPANY

Tuesday, Jan. 31.

Erie

another
the
inundated

does,

more

of

Bell

million of

which

tures

than might be

George B. Fisher, Bosworth, Sullivan & Company.

JOHN R. HENRY, Secretary,■

December 28, 1955

interest. Unless there is

that

underwriters,

;

literally

with

through

Northwestern

high point in

a

it

as

have

brokers

^

*

Neely, Merrill Lynch, Pierce, Fen-

Beane, Inc.

Directors:
P.

B. Fisher

Carroll, Carroll & Company.

Vice-President: Orville C.
ner

George

,

be mailed.

$5.5 milcertificates

also will be in the market with

"first" for the general investor

Orville C. Neely

,

February IS, 1956 to Stockholders of record
at the close of business January
19, 1956.
Transfer books will remain open. Checks will

has

trust

in
the following week General Tele¬
for

up

on

Carroll

dividend
declared on

was

Company, payable

the Common Stock of this

will

718,362 shares of preferred stock.

the

at

the Ford offering.

P.

STOCK

share

per

the

to

gainsaying the fact that inves¬

tor

cents

negotiated route and
would involve preliminary offer¬
ing to shareholders.
by

books,

of prospective new issues tends to

no

fifty

.

guarding

jealously

position

show

of

general

phone Co. of California will open
their

CAN COMPANY
COMMON

On December 27, 19SS a quarterly

/

convertible feature.

H.

AMERICAN

of

.

Underwriters

;

John

Textron-American

somewhere in the

and

between

the

the

with

much

with

DIVIDEND NOTICES

this stage.

at

equity

this undertaking

as

undertake

to

Hotel

resident partner.

as

that is not in¬

picture.

dealers, with few ex¬
ceptions, will be in the Ford busi¬

up

Kaplan

tificates, and that naturally won't

other

bankers and

ness

even

only' competition for Ford
next week shapes up as Chicago,
Burlington & Quincy Railroad's
$7 million of equipment trust cer¬

neighborhood of $650 to $700 mil¬
lion, it is a safe bet that since

of|Denver the fol¬

tainebleau

The

much

as

toward

the

of

Exchange, will

branch office in the Fon-

open a

available

be

The

ac¬

offering.

mously elected to serve from Dec. 8, 1955 through the year 1956.

Howard

members

Stock

this year.

case

would

offering

dicated

evidently had decided to keep the
tracks

which

January, but

corporations with financing ideas

26

Serlen

lowing officers, directors and national committeemen

for

of the financial world

area

little

since

Donadio

.

annual meeting of the Bond Club

At the

had

stock for the

will foot up to

OF DENVER

CLUB

tions

year-end

of the Ford Foundation.

This

Point Club

Hank

long

Motor Co.

count

29

Strauss

its

Ford

36

(Capt.), Eiger, Nieman, Weissman, Forbes—

Leone

Co.,

York

The calendar could, of
course,
build up by a few quick registra¬

underwriting section of the
fraternity came back

Street

holiday
seemingly concerned only with
tackling
the
enormous
job
of
distributing 10.2 million shares of

40y2

(Capt.), Brown, Rappa, Seijas, Demaye__

prospects.

January, one of
the big reinvestment periods, usu¬
ally brings a rush of financing,

/

.

f

BEACH, Fla.—John H.

&

Even with the Ford

SECURITY TRADERS ASSOCIATION OF NEW YORK
-

John H. Kaplan Branch
MIAMI

Kaplan

Slow Month Indicated

47

ber

22,

Agent

on

Decem¬

1955.

RAYMOND

KOONTZ,

President

48

The Commercial and Financial Chronicle...

(104)

Thursday, January 5, 1956

life had

BUSINESS BUZZ

that

Under

AJ

from the Nation's

by

staff.

fiscal

compensatory

sup¬

posed to cut taxes and increase

spending to counter a depres¬
sion, but it is supposed to raise
taxes
and
cut
spending
to

_ _

JL CPU

jLM.fl/U

Capital

its

or

dogma, the government is

n .;.'
Behind-the-Seen® Interpretation*

been learned

never

Committee

counter

boom and

a

inflationary

pressure.

With that
-

the

session of

new

before
of

it

docket

present

legislation,

pending

indications

Their

that the session

are

at first

will

toward

actually

bills.

passing major

•

;

;

.

for

and

hectic

more

a

three

from

months

such

where

major

the

now,

reach the

stage

,

subjects

as

tax rate

aid

education

to

floor,

for: ad-?

This

week

their

own

13

An¬

unpassed, together with
three new welfare pro¬

yet

two

or

will1 be

grams,

this

spending programs

old

the

What

down

slowing

himself in again as a

President

If the

re-election,
be motivated

as

the

ing

ment

to

be.
If the
himself out of

then both parties will

"liberal."

their best guess

The

tem

laying the major decisions
near summer.

This

until

Help Avoid

it was possible for the

issu-

j

ing at this time a block of some

,

Credit
terest.

Corp. certificates of in¬
These

are

though
surance

eliminate

overlapping.

against

pool certifi-

a

lender,

bank

in¬

or

company for the money

in

tinued

the

there

of

con¬

financing,

keep

rates

much

of

back

come

this

to

Bearish

On

would

and

Administration

Such

marginal

loans

thus elevated to the class of

doubly

sure

banks will be willing

loans,

.

time

There

are

pending before the

banks

to

underwrite

into-an

disbursing
after

10

bank

that

with

years

that

any

and

In

the

view

of

the

Investment

opposition of

Bankers

ciation, these bills

are

Asso¬

not

ex¬

pected to get out of Committee.
It is said to be doubtful whether

will

even

come

up

fof

15

Exchange Place, Jersey City 2, N. J.
BOwling Green 9-4058
HEnderson

5-1300

,

"Liberal"

As

usual, the daily press saw
nothing in the report of the tax
subcommittee

sional

Joint

Economic

Congres¬

Committee

the

on

other

subcommittee

than

recom¬

was

is not the time to

taxes,

what

boom

a

pressures

with

floating
on

around

lender's

Economic Committee sticks just

note,

the

The

this

new

the

government
loan.

regulation

repurchase

period

tenaciously

as

shortens

to

five

notice

to

fiscal"

pensatory

is

that

the

the

tary
the

Teletype

JCY

798




lion

economies

Photographic Review

—

isters

of
of

the

Centre,
Presi¬
Council of Min¬

the

Italian

Republic,'
in

Rome, Italy (paper), price
Italy 100 lire per copy.
—

Elvin

F.

Donaldson

The

—

Ronald Press

Company, 15 East
26th Street, New York 10, N. Y.
(cloth), $6.

as

though the hard facts of fiscal

TRADING MARKETS

W. L. Maxson Co.

,

Morgan Engineering
National

Carl Marks

&

Ho. Inc.

Co.

Riverside Cement

•

FOREIGN

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

•

SPECIALISTS

NEW YORK 4. N. Y.

TELETYPE NY 1-971

LERNER & GO.
Investment Securities

10 Post Office

Square, Boston 9, Mass.

will

help permit spending in other
directions.

A

Documentation

Indian Head Mills

mili¬

spending being requested,
possible savings of $2 bil¬
such

(paper), single copies available
free—quantity prices on request.

Fashion Park

as conserva¬

for with additional

from

1956—

recom¬

tive sentiment may give Defense
a run on this
subject in the new
year,

in

Foundation, Inc., 30 Rocke¬

"com¬

theory

*

supply.
well

Finances

25,

Personal Finance—Second Edition

prices.

appear

to

Tax

Ad¬

feller Plaza, New York 20, N. Y.

dency
re¬

there

What the daily press did not

the

Government

Italia:

.

.

recommendation

now

being

the

Report,

the

That

and

of

Cooperation

Washington
(paper).

D. C.

whilst

as

a

Background for Mutual Security—

balking
against those which offer hope
of substantive economies, such
as integrated purchase of com¬

Julius Maier Co., Inc.

views.]

deal

bank does not want to hold the

will take back

'

same as
they may general ob¬
ligation municipals.

mended.

agreement

..

.

bonds, the

Word has been passed around
that
the
Defense
Department

items of

.

[This column is intended to re¬
flect the "behind the scene" inter¬

in municipal revenue

that the

grate procurement.

mon

time.

Senate Banking Committee bills
which would authorize national

disbursing

.

the

Commission

'

to

pretation from the nation's Capital

what

Home

re¬

and may or may not coincide with
the "Chronicle's" own

paper.

Farmers

be

more

practical political
circumstances than Congress
can
bring about the reversal of

ministration,

distribution of its vast supplies,

Hoover

can no

International

Credit

at

times.

under

Compensation Theory

that annual savings of upwards
of $2 billion would be possible.

mendations,

duced

paper

have

effort

these

Bank

enters

large number of

government

and

roost

in

Underwriting Bill

the

a

propor¬

penditures

prolonged interest

Treasury
pay off.

Defense

^'accept"

of
be

to

regardless of
compensatory fiscal dogma, ex¬
once undertaken | by

"planners"

face

money

a

the

duce

partment lor its failure to inte¬

rise,

would

that

the criticism of the Defense De¬

on

were

rate

spired

will

in

because

Sticks to Fiscal

To make

Another Democratic "liberal,"
John W. McCormack (D.,

deficit

lid

the

the

is

By law the Farmers Home
clients must have been refused

government-guaranteed

Mass.), floor leader, has joined

LITHIUM CORP.

..

prolonged

a

reduction

That

hearing.

are

Rep.

UNITED STATES

that

not

should

ever

the back of the farmers' notes.

agencies.

.

out

could

it

they

an

Department integrated
procurement, storage, and

hairline

by writing "endorsed by the
United States Government" on

Farm

autumn

work

agents for these government-in¬

•

Primary Markets

the

were

such credit from private lending
institutions and the subsidized

Department
directives,
which
like

it

merely going to

It was the opinion
of the
Hoover Commission that if the

Commodity J

of

millions

di¬

of

collect

years

With both classes of loans, the

impregnable
depart¬
ments,
their
supply
systems
appear less integrated and more
independent than ever."

ceipts Of taxes from the boom :

$800

to

leaves

avoid

flow

20

government both approves and
collects the farmers' loans as

barrier of the military

swelling re- J

to

and

Defense

seem

New CCC Issue

economy,

would

to

proving farms.

amendment, in the opin¬

constant

a

Because of the

take

if

Home, farmers

up

ties, for reforestation, for con¬
serving their soil, or for build¬
ing permanent pasture. They
may get loans up to 40 years on
mortgages for purchasing or im¬

down waste.

amendment

loans

for many kinds of water facili¬

Depart¬
to

get

may

econ¬

ion of the Hoover Commission,
has achieved nothing. "Despite

de¬

■

Administration

which

duplications

of
Taxes

that
rising
government
empire, has by regulation

the ever-possible risk
Treasury assumes in
its
existing contingent liability for
that agency's loans.

Secretary of Defense
to
issue
regulations to bring
about an integrated supply sys¬

is
and al¬

getting under way,
invariably winds up

forced

be

cut

Administra¬

the

O'Mahoney (D., Wyo.), who,
incidentally, is an outstanding

ingly.

most

Home

boosted

C.

rected the

slow

tion,
credit

1953, Congress adopted an
amendment by Senator Joseph

the

to

Farmers

In

re-election,

Then, too, Congress always

*,

should

probable Republican
nominee,
and
cut j and tailor
their legislative cloths accord¬
as

Defense

the

terms

The Joint Committee did not
debt

Thus

years.

New Loan Deal

direction.

one

balance

small—in

so

propose

Farmers Home Works

firm bi-partisan feel¬

a

that

measures

may

takes

make

to

There is

for

in

be

revenues.

the

tions.
Please—no coaching from the audience!'

,

serious drive for

a

not

balance

billions involved—as

literally

;

except

omy,

both parties will
by diversely aim¬

case

the race,
have

the

This session offers little pros¬

pect of

candidate.

announces

ing for his defeat or
President

will

money¬

Under Farmers

the

legislative machinery is the un¬
certainty over whether Presi¬
dent
Eisenhower
will
count

did

a

higher

Furthermore,

Of Defense Procurement

is

-

consequence of

a

Congress Is Critical

year.

Administration

budget and plan for

this year, but freely admits the
balance will be the accidental

,

be postponed.

the docket

on

This
.

endar 1956. Since receipts are
flowing in fast enough to keep
the Treasury under the present
"temporary"
debt
ceiling. of
$281 billion, the decision could

legislative
program
Senate
Majority
Johnson,
confirm that
by

Leader
all
as

will drag.

point

-

big

bags.

together with the

nual Message,

offered

this .is

However, it is said that at

Eisenhower's

a boom
of proportions not visualized
by
the planners.

around

run

scheme to enrich the

prospect

of a balanced
in the main like the
balanced budgets of the
is due primarily to fiscal

three

past

pool

present,the CCC is not certain
of what volume of commodity
loans it is likely to have to put
out in the first quarter of cal¬

President

The

;

accident. The accident is

CCC

charge

tax

any

'

floor

both

absence,

and committee action
,

who

gogues,

Capitol for a
time, fighting

a

which

of

budget,

present

any

possibility

1

be

primary fights. Dur¬

their

ing

at

so

or

the

Committee

except perhaps to fi¬
additional roads spending.

nance

April.

market,

the

going through the logie
dogma. There is no re¬

its

mote

either

be

ob¬

some

increase

and .that.

could

or

feels

appear sensible in a

However,
avoids
of

ministration in the pocket book,
but fuels the fire of the dema¬

delegations will absent them¬
the

time

would

religion,
merely

been

minor way.

months, obviously would
a
high rate of interest.
not only
hurts the Ad¬

draw

June 30, but prob¬
ably will get away some time in
July.
Then, too, whole state
from

later,

certificates,
nine

journment

selves

issue

Committee

ligation to

Dec. 29, CCC

on

the

until

Considering

conventions,
aim

will

leaders

the

transfer

to

due around the year-

February

money

sion.. Because of the impending

political

later

in

wili

national

However,

the

|.

i

to votes in committee.
be short this ses¬

or

Time

end.

the

to

come

was

announced

.

renewals, and

grams,

issue

^deferred

expanded road and hospital pro¬

is

have

ludicrous if the Joint Committee
had favored tax
reduction, for

It had been reported that the

feverish situation when, two or

Congress will

effect

would

the

from the Treasury to those who
take them, such as banks and
insurance companies.

(

/•• '

This situation, of course, will

;

make

notes

temporarily the burden of car¬
rying
CCC commodity loans

most slowly

move

it

.

farmers'

on

given
for
CCC
commodity
price support loans.

Congress has

tremendous

a

based

cates

WASHINGTON, D. C.—While

its No. 1

as

Telephone

r~~T

HUbbard 2-1990

Teletype
BS 69