Full text of Commercial and Financial Chronicle : January 9, 1958, Vol. 187, No. 5706

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*"
* 4

Vr •

PER lcpicAt

ESTABLISHED 1S39

RHAr'"'"'

■

Rag. U. 8. Pat. Office

Volume !l$7

Number 5706

New York 7, N. Y.,

Thursday, January 9, 1958

Price 50 Cents

Copy

EDITORIAL

A Fair
Congress is

It is

commonly expected to do what it

all that it

can to

A number

of members

Federal

he believes should be

in each of the major political

of the decision

undertake it

else

were

able

maker

spells

unfavorable outlook for inves¬

Mentions such remedial possibilities as:
(1) revis¬
ing Section 5 to permit expeditious increase in rates;

(2)

statutory correction;

and

(3) constitutional pro¬
tection against property-confiscation.
Appeals to secu¬
rities industry to
help prevent unnecessary panic; an¬

progress of importance when they did try
several illnesses of the President, the

it. The
general
course
of foreign events,
including Russia's al¬
leged success in the missile and related fields, and
now
more
recently the apparently persistent
downward course of business have presumably
subtracted something from the glamor of "Ike's"
name, and thus provided opportunity to his op¬
position in both the Democratic and Republican
parties.
J-to

decision of the Court of

Columbia

birth to

severe

Blues" which
ral gas

case

lowered interest rates will
tions deteriorate
The

Appeals for the District

Circuit, rendered

Nov.

21,

1957,

industry.

"Memphis

•

diate

Federal

assumed,

page

the

Commission

had

sion

stands,

not file

pipeline

rate

new

dealers'
under

rate

effective

can

company can¬

only

filed

and

has,

under

filed,

the

address

Securities Analysts,

Gas

initiated

by four

followed in all

soon

security
on

reserves were

the banks were

Act,

page

Mr. Kuykendall before the New York

officials, although
hastily inter¬

were
as

indicating that

continued

to be con¬
Roy L. Reierson

exclusively with the

fight against inflation; This is not to
' *
1 -■
say that an casing of credit was a complete surprise. As
the autumn season brought signs of weakness in the
business

pictusq, the anticipation spread that the Fed¬
would gradually relax its restrictive pol¬
icy. The general expectation, however, was that this
would be achieved through open market operations, and
Reserve

eral
on

almost

cerned

Kuykendall

Natural

Continued

and

Reserve

the authorities

become

the FederaLRower Commis¬

Section

new

accumulating

shelves, bank

carefully worded,
preted by many

the purchaser has
agreed in advance to the particular

sion

highs,

new

were

pressure

Federal

if the pur¬

rate which is to.be

discount rate

mid-November, and

Society of

Continued

Jan. 3, 1958, New York City.

page

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
are afforded a complete picture of issues now registered with the SEC and poten¬

securities

tial undertakings in

our

"Securities in Registration" Section, starting on page

38.

State, Municipal

in
*

U. S. Government,

m. *»

and

State and

Municipal

STATE

MUNICIPAL

and

• • ;.r .•

Securities
telephone:

BONDS

the

chemical

DRUG INDUSTRY"

view

burnham
monthly

members new

15 BROAD

•

vork and

STREET, NEW

YORK 5, N.Y.

•

014-1400

1832

Members

1
1

SeeuritIP

Stock Exchange

New York

Stock Exchange

25 BROAD

STREET

NEW YORK
FIRST

4, N. Y.

<gouthW€At COMPANY
DALLAS

Active

Markets

Dealers,

BROADWAY, NEW YORK
offices

from

coast

•

coast

Maintained

Banks and Brokers

CANADIAN

SECURITIES

BONDS & STOCKS

Orders

Canadian

CANADIAN

Executed

On All

Exchanges
DEPARTMENT

Teletype NY 1-2270

| § | !

DIRECT WIRES TO

MONTREAL AND TORONTO

Goodbody

Domeoox Securities
Grpokatiott

Co.

MEMBERS NEW YORK STOCK EXCHANGE

40
bridgeport

•

■

;

BOND DEPARTMENT

Members New York Stock Exchange

120

Commission

American

Dept. Teletype: NY 1-708
34

lllfll

Bond

TELETYPE NY 1-22«2

cobuhnham

established

'•

THE

e*c"a"ges

t.l.watson &Co.
•

•

Harris. Upham & C-

OF NEW YORK

Company

amer>can stock

Distributor

Dealer

•»

on request

letter

Burnham and

ST., N.Y.

•

are now available

Net

Bonds and Notes

"INVESTING IN THE

THE FIRST NATIONAL CITY BANK

DEPARTMENT

Underwriter

Public Housing Agency ;
report

cabl.c:

our

bank
BOND

m
i*"
of

•

CORN EXCHANGE

30 BROAD

copies

HAnover 2-3700

perth amboy

115 BROADWAY
NEW YORK

readying themselves for the expected
seasonal
upturn
in
loan demand.
Moreover, statements by 1 e a d i n g

chaser has agreed that this might be
done. Under this decision, a differ¬
ent

and

districts, resulted in an imme¬
abrupt change in the cli¬

offerings

If this deci¬

even

ease

only if economic condi¬

and

vancing to

provided by Section 4

was

of the Natural Gas Act.

than an earlier days, and it is taken for
granted that its path will be even more thorny
in the months to come. All in all, it may be taken
on

Power

and

thought,'and the Federal Courts had

gress

Continued

interests,

consumer

the

ensue

of the money market. As late
as
a
month or two earlier, money
rates and bond yields had been ad¬

which the entire natural gas indus-

try,
"
~

I
,*

mate

decision" completely
over¬
the
established
coiauuaiicu
miuucuuic
procedure

turned

reduction

other

This

j
1

than current near-term indications.

Reserve banks in

gave

afflicts the natu¬

now

demand to retire indebtedness to Federal Reserve and to

policy of maintaining status-quo until
case is
completed; and is pleased with unexpected good
the by-product economic education should
provide.
The

and financial background
developments in appraising the money
market outlook. Concludes: (1) long-term demand and
supply of funds and other pertinent factors will be sack
as to
preclude drastic decline « interest rates; (2) Federal Reserve will avoid undue, or too hasty, ease in die
credit markets; (3) banks will utilize fall-off in credit
of recent credit

improve their liquidity, and (4) increased credit

interim

nounces

Meanwhile, developments have created new
very real problems, and rendered acute or more
difficult a number of old problems. It is, of course,
easy enough—and politically speaking, at least,
quite fiatural—to place the blame for much that
has been happening upon the party and the Ad¬
ministration in power at Washington. In some
instances, doubtless, there is a good deal of truth
in these charges, but even when there is none,
accusations of this sort against those in power
are
likely to be taken seriously by many voters.
The Administration Aa&s already been finding it
much more difficult to be effective with Con¬
,

Bankers Trust Co., New York City

Mr. Reierson presents economic

reversed, and denies non-reversal

tors.

task, but have either felt it politically unwise

regulatory head outspokenly appraises recent
disruptive to natural gas industry, which

court decisions

Vice -President and Chief Economist,
;

parties, have long deeply desired to get at such
a

By ROY L. REIERSON

Chairman, Federal Power Commission

events have not already at¬

tended to that chore.

some

In the Credit Market

"cut the President down to size"

politically—so far
Congress,

Appraising New Situation

By JEROME K. KUYKENDALL*

and

can

Appraisal of

Situation

back at work in Washington.

now

NORTH LA SALLE ST
CHICAGO

-a

Exchange Place, New York 5,N.Y-

Teletype NY 1-702-3

WHltehall 4-8161

Chase Manhattan
BANK

Chronicle

The Commercial and Financial
2

Thursday, January 9, 19o8

(94)

The

only

Brokers, Dealers

For Banks,

week, a different group of experts
fai the investment and advisory field from all sections of the country

one

most

States

BOSTON

CHICAGO

•

133rd

The

Dosition for

McDonnell &fo.

manv

has

vears

HAnover 2-0700

been

has been

Pany

branch offices

our

ducilo n>infointermediate
chemicals, arid V end , products

which the profit margin is better.-

]\jyion

JAPAN

ari(j

dropping tto about $7.5 and then/var/deveiopment

^For

information

current

Call

write

.or

Yamaichi

Securities Company

and points to a/

of
'•

aggresswe..^and capableuvpiana^pr

fnlinw„.

began

i,4n-

d>.ia

■

•

Company
adopted its .current

Enormous

of the

f 1?

in 1940.

name

Exchange

Mobile, Ala. 7/4

Direct wires

diversifying :,its:

p r Q

and

NY 1-1557

vpmain

Company

1935

(

NewOrleans, La. - Birmingham, Ala.

\";J' '}>

rr.r-r>Ti/r

A—.'"

polyethylene 'are ex-/;
extremely^promising.
^mples of this; latter progr-am and,/
Bureau -of iPub kc Roads/has/estiAlthough : there?:: has • been some,
mated that under the Federal 'Aid
overproduction of capacity in both
Highway .and 'Highway Revenue,: :0^ these- fields - with the resulting/
acts of 14)56, expenditures will.rlse
temporary;, ^squeezeon
profit
to a peak of *about 8 billion
/by margins, I believe that this greater t
1'Ofifl
nrirl
npnr
thnr 'nnnit.
1960 and/remain
near that 'point diversification* of
product 7 has j
.the
following
7
.years
.before |JCC]1 a highlight of Allied's post-

RjiiiAVi

look is

Marietta Paint & Color

Members

Bought-—Sold—Quoted

19 Rector M, New York 6,J. Y.

proaucingbasic chehlicais

LONG TERM: The

Stock

growth/ Its fundamental

ment attd

•

partnership with $5,000 capital in 77$ 14: billion—to offset
1913
as
the
American Asphalt
*eii«e
Paint Co. It was incorporated in
$17 billion
to keep
Illinois in 1930, merged with the
population growth

Since 1917

American

Members New York'Stoch Exchange

long term sales .and earnings cmtf

stockholders.

number of

SCRIP

Corp.— j

obsoles-,

New

York,

Inc.

'Affiliate of

•

■'

Tokyo, Japan
.

Brokers & .Investment Bankers

J11 Broadway,II. Y. 6 COrtlandt 7-5680

brevity and for years stockholders
wondered what constitutedthe *
large item the abbreviated balance
gjiee^ -entitled. ''Investments.'' Now

with
.

•'

we know that these investments,;'
wblch aggregate;.$52.3 million (at -

Yamaichi Securities Co., Ltd.

American-Marietta ranked
Water and sewerage construe(Wld HeA^^a^^u la v
in sales,
198th in assets, Hon in the next 20 years isesti-:wbe. annVa| report of Allied_Chemin net profits and 125th in mated, at $41billion,brokendown/1C" xised .to.be a tmasterpieee 'of'

shows
195th

120

$7 billion respectively„for. the; 'last- lllticu more interesting future.
14
2 years of the program.
Another "evidence of this more'v
Virgil A. Stock
This
indicates
a -potential
inAnotney. .^yidence pi thig^rm): c,,v
p o s i t i o n. A
well known
crease
in total road .'expenditures
^
reliable
source
in . its rating .of aloue of 63% between 1957 ($4.9
lia? been the disclosure tjI;
domestic
industrial corporations billion) and 1960 ($8 billion).
'information about the company^/

Specialists in

Stock Exchange

Dye

^enviable

wen

New York

Members American Stock Exchange

yoiume oi

'
t

/OUTLOOK

expansion
possibilities
has placed the
Company in
an

(

^NER,R0USE «G0,

volume

sales

1956

conVluu™
^tt^t rfLr'r

favorable

Private Wires to Principal Cities

RIGHTS

Marietta's

research

^^Ln^fS

alertness to

FRANCISCO

SAN

•

United

today.

of
p
r
o
Li t
margins,
and

Teletype NY 1-40

WOrth 4-2300

PHILADELPHIA

Chemical

streets and roads are expected 'to
increase sharply in 1958 to J$5:5

Emphasis by
management

York 5

120 Broadway, New

;

and develop-

■

...

Wftherspoon,
Invest- %
ment Counselor, St. Louis, Mo/A—
(Page 2).

highways,

"Outlays; ."for

Total

provement
>

•.

William /

than three times the 1949 level.

rations to be found in the

Exchange

Stock

billion up 12.2% from the ,1957
of the fastest growing
and estimate of $4.9 bilhon. It
diversified industrial corpo- portant to note at this point ;;tnqt

ment,

1920

Established

Louisiana Securities

Stock, of Baker, Simondsvdt
Co., Detroit, cMich. y (Page 2).

American-Marietta .Company ,is

Associate Member

„

Corporation

are not

reach the $3 billion mark—more

STOCK

American-Marietta Company

New York Hanseatic

as an

Bilker, Simomls & Co. Detroit, Mich,
Members: Detroit Stock Exchange

trading problems
during the year, our private wire
system will help you speedily
reach banks, brokers and dealers
throughout the nation—and pri¬
mary markets in over 400 issues.

Co.

American-Marietta

Allied

Whatever your

they to be regarded,

VIRGIL A.

perience.

American

intended to be, nor
offer to sell the securities discussed.)

(The articles contained in this forum
are

of professional ex¬

years

Alabama &

and

Their Selections

our com¬

plete Over-the-Counter facilities,
our
large Trading Department
with traders who can offer you
many

participate and give their reasons for favoring a particular security.

Try "HANSEATIC"

Week's

This

Forum Participants

A continuous forum in which, each

Through ALL of 1958...

and take advantage

Security I Like Best

even

INC.;;;

the current low market,

are'.
Glass :

quantities of products headed by Owens-Illinois
Company divisions and followed by American

37 Wall

Street, New York 5, N.'Y.

Vis-

various

^UMerwrikrs^Distfibutofs *

BROADWAY, NEW YORK B
as

TEL. REctor 2-7815

77"

.+u-

tion program

phasis

witn

the

••

and

building

this

con-

plantg

fhroush
thiough

.concurrent

jgo-

Amencan. Marietta

Dealers

'■
•

•

■.

-M

•

•.

Investment Securities

States and. j Canada, picture of the company/and its/
Certain operations are also carried operations.- - 'v
7/
,V7;

•

Canadian and Domestic

The company's capitalization is t

Cuba' Mexico, Colombia,

on in

retained

"nlowback"

American Furniture

major

program^ of external tthe United

and

expansion

Trading Interest In

struction materials1 field, as a
suit

">*<.

* Company «uu uuivid m .umi,;Uiuci :ui ,iui" ,
,than 150 well equipped/portance. Furthermore, the annual;
strategically .located
in report is; a large and-attractive/
market areas throughout booklet that gives ;a very detailed *

nuiCl lUctll - AVActilCttct

particui^1'-^em-

Brazil> Holland .and -France. '
i composed of $200 million 3^ %:;SFC
American-Marietta
Company Debentures, due April l, 1978, and

uo.

iWi mAM

AnvvAnllTT

c?f Anlr

J?a11

^...1

.U-il- n

eriit

41U

Bassett Furniture Industries

Life Insurance Co. of ;Va.

be^erae^^an^lining^'and^house- yie;ldin8' in
^Commonwealth Natural Gas

STRADER and COMPANY,

Inc.

TWX LY 77

-5-2527—

Private

Wire

New

York

City

Opportunities Unlimited,
IN JAPAN
Write

for

our

printing

;cement

lime

limestone

and

products, and brick and tile.

th4

{or
+or

Common Stock

two for
a

one

Telephone: BOwling Green 9-0187

I 61 Broadway, NewYork 6,N. Y.
is

not

orders

offer

for -any

LAMB0RN & CO., Inc.
99

WALL

STREET

—

Refined

—

would

be represented

now

shares, worth $22,000
13, 1957.
Dividends

is mot

em-

by 750

Mo.

of Dec.

Dye Corporation

July I believe

totaled

that there

are

g o

42.5%
on
investment.

the

have

OUTLOOK

Short

——

•

are

good. It is

outlays for
total

new

$49.6

$47.8

values in

select the

dential building

1958—

like ;b

almost

1957.

sible,

(private and pub¬

Public

utility

the

annual

the

first

over

tional

are

construction
expected

rate

time

1957,

ex¬

William

1958 —up

t lis

imposb

the

Dye i is

issue
I

present time.

aggresshre

spirit

one

^ 0tP7hif ve'a^ versus'^^W '
December ouaS
and

year

the

Drobablv

b?so^whnt

the most useful tools

Jher'

securing
So

it's

will
.pi obably be somewhat higher
than the $1.21 per share

reported

last period of

1956.

your

manifest

and

something over $5.00
may be ,reported next

new
smart

customers
to

place

advertisement in

total

share
year.
An
per

ad^arl?;
'"nf mcrease is the fact
tbat tbe accelerated amortization
,°, k/ve passed
its crest and wil1 beSin climbing
skarply in 1958. The normal
eciation is picking up sharply
®p-lke net lesult will be a pos—
^L)le leveling off in the next few-■■
ycais

sharply
The

develop-

THE COMMERCIAL

FINANCIAL
25

AND

CHRONICLE

Place, New York .7

Park

rather
than
increasing
as in the past few years.
market ' actionof

Chemical has been very
ing of late. It reached

Allied

Over-the-Counter

encourag- "
a

high of*

,12912 in April of 1956 when tit \
sold at the abnormally high priceearnings ratio of around 23.8 times

Quotation Services
for 43 Years

1955 earnings.

and

During the past 10 years Allied
Chemical & Dye has demonstrated
an

cal
a

much

Allied Chemi-

that
very

eainings

Since then, it de-;
clined to around 87 by last spring

Witherspoon

to reach

$6 billion for

6%
public educaare .expected
to

while

outlays

e s

would say that

mostly resi¬

lic) and highway work.

to
one

issue .that" I

$2.4 billion expansion in 1958
will

com-

Therefore,

estimated

for

—

stocks,

mon

earnings

expenditure^

evident

and "attractive

TERM;

tremely sound

construction

billion

SHORT

—

term -sales .and

prospects
will

$637.50 for. a
return sof
original
$1,500

year

lepoited

^ompany

There are many stocks that *
like for long-term investment and
especially following the sharp decline in the market from mid-

750 shares in 1957

Earnings in 1958 may continue
this advancing trend that has be¬

Investment Counselor
Saint Louis,

eomnanv

in the

WILLIAM WITIIERSPOON

one

would

penditures

Dlgby 4-2727

nppnunt«

remarkable

construction

Exports—Imports—Future*

cmSrent ktura

investment

of Vi,uuu
$1,500 xu
in 1947, u
if not disturbed.

The

Liquid

trnct

phasized and is suitable for long
term purchase by donors of stock
gifts to minors.

Allied Chemical &

Raw

Advertising

hnre

gun

5% above the record

SUGAR

buTmSst If'^^cl^e
in.capital/f'®' 1/ fh™ fL?£
The

recommended

dend rate since 1950.

that

NEW YORK 5, N. Y.

inoln^ion

have been 10 increases in the divi¬

solicitation for

particular securities

accounts interested

three for two in 1957. There

Stock

appreciation. It is deemed suitable

five for four split in 1956

An initial 100 share

This

Common

where

first offered

was

$15
per
share
m
1947. Stock splits of
were paid in 1952 and

November,

and

income

and net worth 730%.

1,100%

1955,

net

625%,

'theJ

of •

1957 WiU PI'°bably be slightly

sales

rose

68%

miHion for depreciation. Earnings

1947

through 1956, the Company had a
tremendous growth record To cite
a few oi the outstanding figures,

Nomura Securities Co., Ltd.

itments made at

period

year

constitutes

seeking good capital appreciation 81% of the total,
^^.1?
'f Earrlings in 1956 amounted to 7
A
amPly 1 re" $4.74 a share after allowing $50.4 +

inks

paints (industrial and household),

publicly

Monthly Stock
Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a whole.

mops.

nroducts

of 3% .on an surplus

excess

estimated dividend payout of 30%/total capitalization < and based
available earnings. Investors upon the current market, is about ;

It is also, a leading
producer of pre-stressed concrete
hold

chemical

LYNCHBURG, VA.
LD 39

at that (time the market
aPPeared to be rounding out an
something of a reversal pattern.

S01? there it advanced to about
,7Lrtlast JJily'^only t(\ be hit
,

vlt»orGusly-Dy the general market
Continued

page

national Quotation Bnrean
.

Incorporated

Established 1913

46 Front Street
CHICAGO

New York
SAN

4rN.Y.

FRANCISCO

JNumber 5706

187

Volume

The Commercial and Financial Chronicle

(95)

INDEX

The Business Outlook and

;

♦

Articles and News

Specific Business Advice
Economist

•—Jerome

National Bank

Central

' "

Vice-President

and

;

Cleveland, Cleveland, Ohio

It is the considered judgment of Cleveland banker and
1

Views of the

—Roy L.

Reierson

5% and last

'problems.' -Offers specific fourfold advice

econ-

—Russell

our

than 9 to 10

^
;

to what business-

incomes,

per-.

adjustment

—Thomas

YORK

Boushall

■

1958

Policies for Bankers in

1957 Passes We Notice

A : T

—

Our Troubles Are Man-Made

;—Chester D. Tripp„—__

the :ex-

wherein

—

Will

Business and the Market Turn .tip
—Peter L. Bernstein—______
'•

•'*

•.'

,•

v.-:-'

t»'

•

In 1958?
12

—

•

'•

•

/ /

•

Another Look at Government in Collective Bargaining

—Nathan P.

Feinsinger

cesses

vv/,

..-v.

WALL STREET, NEW

Improving Our Real Strength-^-Roger W. Babson_—.

of .the past two years are
sumption e x- ' being horrected. rf.;: '.'"III '
j /
penditures
evident from Chart I that
a n d
govern- the boom has peaked out and that '
ment
expen- ^business activity has turned down.
ditures
about It is interesting to note that the
'■}5 to 7% over tl;end
of
business: activity, , as
1956. Price in- measured ' in
terms
of physical
creases acvolume of units sold, has been

;.v-s-o. n a 1-con-

___'

should do under present circumstances.V

personal

Bought—Sold—Quoted

Telephone: WHitehall 4-6551

Consumer Credit

year

v<}.:■.

r The State of Business in 1958—Paul T. Babson

1957 ; will be the brought4o an end the inflationary
in the history spiral of the past two years and
nation, with gross national that we are how entering a period

product,

Specific Business Advice

MetznerJ.l^-Ii

Canada's Natural Gas Picture—E. D. Loughney-

Statistically,
business

EMERALD

—_:j-_^—___^:^—_-__:Cover

The Business Outlook and
f

best

CHIVOR

MINES, INC.

men

CoVer

Appraising New Situation in the Credit Market

j>. months, i Mr. Metzner anticipates an accompanying increase
'*4; in money; supply resulting from credit ease and increase in
>
government spending. For the long run, the author assumes*
an industrial production growth at same rate as in past decade, V
with more competition and inflation as troublesome non-war
T

Kuykendall-

that current industrial production de-

economy,

dine should not exceed

«llCHTEflSTfld

Existing Serious Situation

omist, in disagreeing with the pessimists' and the optimists'

Page

and cojoaxy

A Fair Appraisal of an

By RUSSELL II. METZNER*

Mil

United States Gypsum Co.: Dean of the Building Stocks

•

—Ira U. Cobleigh

Understanding Industry's Role—Lamont du Pont Copeland

for

count

•

rise

indus-

surpluses in all phases of economy,

produc-

inflation is no longer the disturbing force of past months. If defense spending is not to be stepped
up
appreciably, the return to, a

tion

shade
'for

only a
higher

the year,

The
Russell

Metzner

level

activity
_

hiore stable economy will justify
further easing of the credit reStraint program in the months

high

busi-

sustained

was

ahead.
What are the basic economic
factors underlying the present
downturn in business activity. •
Some economists regard the
current easing in industrial activity as a pause in the long-term
growth of the economy a ternporary period of adjustment iol-

throughout the first three quarters1

further rise in outlays for
new plant and equipment, Federal
spending, public spending as well
by

spending

consumer

non-durable

Declines

services.

and

rise

moderate

goods

new

housing starts, and in sales of du-

the

xable goods to consumers were

Qowniuxii in uumntos jm ic—

apunuiiig,
spending,

defense

easing
cdanig

ouiiic
some

in
in

new
new

prniin

.jlant
. and- equipment expenditures, and a further clecli e in

There
the

are many

•

Mr. Metzner before
Luncheon of the

Forecast

Annual

Boom—What's Ahead?—Charles

Broderick 18

following

transition

T^y

—Charles T.

Greene..

—Otto

C. Lorenz____i__;

Credit Controls?

just

period

adof

look upon it as a
normal rate

(ivity, population and

cal progress

technologi-

They foresee aI cor-

1'ectlOn period of SO.mewhat longer

Continued, on page 26

The Soviet Threat to the Diamond Market—Wilma Soss

Ralph Rotnem Sees Attractive Market Opportunities in 1958__

A Year

Confidence

•'

Industrial Production
Personal Income

Employment
Defense Spending
Plant & Equipment
Expenditures
Retail Sales'

4/'

New Construction

End of Year

■,

New Orders

Unfilled Orders

Pessimistic

High
Rising

Declining

Deflationary

and Employment

J. Ray McDermott
Pacific Uranium

Regular Features
As

Bank

See

and

specialized in

Insurance

Stocks_____

—

Bookshelf

Coming Events in the Investment Field
Recommendations

Investment

Dealer-Broker

Declining
Declining

Rising

Declining

Rising

Declining
Rising

Mutual
NSTA

Funds
Notes

—

Nashville

40 Exchange

Observations—A.

Wilfred May

Our Reporter on

Governments

Direct Wires

Our Reporter's

Utility

Steady

Down
Down

Down

Securities.—:———

Down

Stock Exchange

Securities Now in Registration—1

Offerings

Lithium Corp.
Gulf

—

25
t

The

Security I Like Best—

The

State

Washington

and

United Western Minerals

Park Place,

Glens Falla
Worcester'

•

Sulphur
i

Quinta Corp.

CHRONICLE
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second-class matter Febru¬

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Thursday, January 9, 1958

TELETYPE NY 1-5

—

•>4

Weekly

HERBERT D. 8EIBERT, Editor &

TEvery Thursday

Pan American

COMMERCIAL and
U. 8.

....

You__

Twice

FINANCIAL
Reg.

Trade and Industry

Sulphur

You—By Wallace Streete

4, N. Y.

ST., NEW YORK

Boston
•
Chlca*a
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•

——-

—

The Market... and

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Chicago

Railroad Securities

Security

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Report

WILLIAM B. DANA COMPANY,

•

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inc.
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Teletype NY 1-1825 & 1-4844;

Securities Salesman's Corner

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•

Request

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PREFERRED STOCKS

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Upon

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From Washington

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Brush

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Business Man's

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have

Teletype: SU 155

Published

For many years we

Exchange PI., Salt Lake City

DAvis 8-8786

Conference Board Economists Forecast Dip in Expansion

Declining

Rising
Rising

.Steady

Optimistic
Inflationary

Declining
Declining

Primary Metals Prices
Housing Starts
:
Manufacturing Inventories.

Teletype: JCY 1160

of Contrast

Rising1 "
Rising '.

Consumer Prices

Steel Production

HEnderson 4-8504

DIgby 4-4970

Philadelphia

1st of Year

Trend of the Economy

1 Exchange PI., Jersey City

CHART I
—

Members Salt Lake City Stock Exch,

Spokane Stock Exchange

Can We Control Humanity by Consumer

more in keeping with
of increase in produc-*

rate

-the

bnToh?oChamber °' Commerce' c,eve'
1957

J. F. Reilly & Co., Inc.

Time-Tested Equities and the 1958 Stock Market Prospects

growfh,

indications that

policy of credit restraint has

~~address
the

4i,stnient

policy of credit restraint,.

Depression

Stock Market Outlook

____!

Loeb

Hoffman International

correction

business

products that are most

and

ontiiYii^ts

broader jn scope than

^^
the

*
thp

The 0^er economists view the

part, these aie the indus-

the most

tries

currenf.

duraole goods saes. Foi

consumer

inflation.

years

They foresee a moderate corre6tiQn Qf relatively short duration,
Hereafter
x shall refer to this

The downturn in business in recent weeks reflects lowei

two

lowing

principal offsetting factors.

—G.

trial

ness

declining for some months.
N
^ With
scarcities giving way

much

the

Morale and Psychology and the

$72.00

•

Record

Monthly

^(Foreign Postage extra.*
remittances for for¬

eign subscriptions and advertisements must
be made in New York funds.

YORK 6

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account of the'fluctuations in

exchange,

INCORPORATED

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year.

Publications

Quotation

year.

per

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Direct

PHILADELPHIA

Wires to

SALT LAKE CUT

ftie Commercial and Financial Chronicle
4

Thursday, January 9,

1958

(96)
: ■»"

-•

reiterates

Coit

Miss

Whereas
his

own* stressing
of
how
he
pored over the statistics, includ¬
ing use of the Chronicle and Poor's
as
bibles, she also cites these
playing-the-market attitudes: :"A
good stock was its "own best ad¬

tr*;

1
v

By A: WILFRED MAY

vertisement Y

ivJi-J-. r.wv

rr-x'-t,

n:f.

State of Trade
Tin'-'igV

that

Stock

i V'x ■ '<

t»i

*i'k

:l ;

Retail

Food

Price

Index

Auto Production

•

1Business Failures
;

/all was usually a good stock.
Cheap stocks' were no bargain.

and fair. In

Trade

Commodity Price Index

fact; she will be pleas¬
Capping his life-long; series of
./The old rules still held—and
cosmic achievements, Mr. Baruch ing both his admirers as well as
hold today—to buy low'and sell
the
detractors
who, viewing him
now
appears twice on, : the Best
high, but the/question was in
Seller lists. For Margaret L. Coit's as a public-relations product, wel¬
knowing just when a stock had
come; any
explosion; of "Myths"
monumental, ;c
♦

Carloadings

•

and Industry

Production

Electric Output
r-, 'i

i,„

/was the first to rise, and the last

MR/BARUCH AND THE BARUCH-ANA
•k-;

'/ the

Steel

The

>■

t,v:

:{r

autobiography

(Mr. B&ruch:^
M y

t h, $. h e
Eighty Years,

B m

// „/

';Sm
;

A. Wilfred May

(if at
/ ~Z\
some distance behind) the colorful
"Bemie's" autobiography on the
booksellers' sweepstakes. "
.

.■'//

who waited too long

knowledge con¬
1

For the

vivant, has
through authors'

lord of the manor-bon

volumes

tive

evidence

question of how the expert actu¬
ally "makes his potatoes." This is
not at all in the customary "howto" vein.
Contrariwise, the how-

crossing of signals.
•'
I*
Way back in 1950, noting the
brilliance of Miss Coit's biography
of John C. Calhoun, which went
on to win- the Pulitzer Prize, Mr.

general

Retrenchment is the byword. Coupled with this attitude
steel in years. Salesmen and pro¬
are dovetailing their operations to pin down sales
they would have spurned in mid-1957.

Most of the bad

market

it-is-done angle is left in the air.
Did B. B. make his potatoes as a

recasting
includ¬

vious review of his autobiography*

voluminous material,

Investment Versus Speculation

re - researching
all factual
statements and quotations from

The shadowiness of the demar¬

original sources.
cation
between
the
speculative
Quite surprisingly, a thoroughly and investment characteristics of
smooth product has evolved from his conduct is now confirmed
by
Miss Coit's back-tracking labors. Miss Coit's
findings. In the face
There has resulted
is thorough

valuable

volume that

and coherent as it is
a

monumental contri¬

bution

(280,000 words of text and
40,000 of documentation) to the
history of our times.
The Bitter-Sweet Treatment

Despite any personal contro¬
versy between the author and her
subject, the treatment is objective

•

vations

by Miss Coit set Baruch's
and philosophy
in .line
with
either
statistical
appraisal
procedure or discernible market
conduct

ing

the

reiterated

Facts'"

getting

confronted

are

stress

"Mr.

those

facts,

with

persistent

reversion

to
rough-and-tumble
gambling, with this shrewd and/or
lucky pirate in the majority of
frays out-maneuvering his rival
buccaneers on the Spanish Main.

*In
page

the

"Chronicle"

Aug.

15,

1957,

5..

rules—either

do's

"But

make

gamble

one

the

—

had

you

future.

You

to
not

only had to know the other fellow;
had to know the trends of
your
time.
That
was
where
Baruch's talent came into play.

you

For

talent

answer.

alone

This

the

not

was

what

was

what

'rules

ever

could

teach. This

not

transmit,
could not even explain. Study was
not
enough. As he would say:

artist

talent

in fact, essentially

finance.

Neither

the

pattern of the
average businessman. One writer
described

has

January 14,1958, at 12 o'clock Noon

intuition

(Eastern Standard Time)

brilliant

Baruch's
kind

some

fourth

mental dimension. He made money

quite
other

$37,500,000

simply and naturally as
might have composed
painted pictures."

men

music

We should remember that Rem¬

STATE OF NEW YORK

brandt and Mozart could hand out

how-to

MENTAL HEALTH CONSTRUCTION (SERIAL) BONDS
Dated

January 15, 1958, and maturing

follows:

giving

1973, inclusive.

Principal and semi-annual interest July 15 and January 15

Descriptive circular will be mailed

upon

such

the

tion

still

leaves
a

investing

man

did
own

Comptroller, Albany 1, N. Y.
?
.

Dated: January

7,1958

•

> *

IM-

ful
a

L-

they
pota¬

of Baruchana,

full documenta¬
and

his

clearcut

firm stand

the expected demands of the auto union.

hopeful

note for steel is the probable effect of
stepped-up defense spending this year./Most of the forecasts on
this year's steel output were made before the seriousness of the
defense situation became apparent.:, Now the Administration has

officially plumped for

defense spending figure in line with the
■/
;

unofficial estimates of months past/.
-

There is

to believe

reason

that defense

higher than those mentioned to date.

outlays will run evten
This, of course, will affect

the outlook for

metalworking and in turn the outlook for steel. To
already has stemmed the decline in manufacturers'
orders, "The Iron Age" concludes.
extent it

some

•

...

—

Looking into the nation

*.m»

111(>•k

•

„

employment situation it is noted that
compensation hit a 1957 record of
550,995 in the week ended Dec. 28, the United States Department of
.

new

claims for unemployment

Labor

reported.

an
increase of 137,400 from the week before, the
said, "substantially larger" than the usual year-end
increase. In the corresponding week of 1956, claims rose by 50,000
to 338,970.

This

was

The Department's Bureau of Labor Statistics attributed the
larger increase to unusually heavy Christmas layoffs in trade;
temporary plant shutdowns for inventory; temporary layoffs in
automobile plants and cutbacks in primary and fabricated metals
and

machinery plants.

Guy D. McKinney of the Bureau said the total number of
unemployed workers covered by Federal-state jobless insurance
programs declined from the record 1,976,000 of the week before.
The apparent decline is not
significant, however, he added, be¬

times,

his

philosophy

underlying

(or

its

success¬

contemporaries);' and without

convenient set; of workable howrules.

cause

during the holiday season, many unemployed workers are
formality of renewing their claims. They

remain unemployed and continue to receive
included in the week's total.
•

;

•>

payment, but are not

Mr.

McKinney also cited several factors he said tend to make
unemployment figures appear higher now. Law changes in 1954
increased
program.

the number of workers covered
by the Federal-state
These changes, combined with growth of the population,

added about

seven

million workers to the number eligible

ceive unemployment
For

the

to re¬

insurance, he further stated.

week

ended Dec. 21, new claims for unemployment
compensation totaled 416,500, up 3,500 from the week before, the
Bureau of Employment
Security stated.
new claims rose
by 24,100 to

In the like week in 1956,
288,750, the latest rise being largely

seasonal.

New York's 22,200 new claims made
up the biggest increase,
attributed by the agency to recent
layoffs in aircraft, machinery,
construction and apparel industries. Other sizable increases were
reported by Pennsylvania and Ohio with

8,200 each, California
7,900, Illinois 7,400, Michigan 6,600 and Massachusetts 6,200.
The Labor Department
summary said half the states reported
increases

and the rest decreases in the

week.

consistent

differences from his less
ARTHUR LEVITT, State

Another

us—necessarily—

categorization

application to

Nor

the flood

without

payable at the Chase Manhattan Bank, New York City.

rules?

bring home their
toes by following any!
even

Thus,

$2,500,000. annually January 15, 1959

take

unable to go through the

in temperament did he

nor

conform

Albany, New York

steel market may come to life about
Most observers of the auto labor scene
strike over union demands in the mid¬
This, they figure, will prompt the car¬
makers to stock up on new models as a hedge against a possible
shutdown. Recent comments of au.to executives indicate they will

•

of success' could

York

It says the automotive
midway in second quarter.
figure that the odds favor a
year contract negotiations.

Department

"Baruch was,

will sell at his office at

way

don'ts.

T
tell
you,
making money
purely and simply a faculty.'

The Comptroller of the State of New

is coming from Detroit with the auto¬

sitting on their hands until their own market ouilodk
bit. They know they can get quick delivery when they
want it and are playing out the role of the reluctant suitor, de¬
clares this trade weekly.
clears up a

culty of determining just when
"high" is too high, was frequently
lady to speculator or serious investor; and, demonstrated, in the great rise
devote her biographical talents to in any event, actually through fol¬ .in Smelting and Refining stock at
himself .There ensued five years of lowing the rules which he pro¬ the turn of the century, he warned
For the the
Guggenheims he felt con¬
painstaking work on his personal fessed to hold sacred?
files, collateral research and inter¬ answers to these behavior ques¬ strained-to sell at 100, following
views resulting in a half-million tions, detached observations addi¬ which the-stock promptly hit 179.
to
the
words of manuscript, which she tional
protagonist's own
Nor, .surely, were his activi¬
as
a
duly submitted to him for factual self-analysis, even when coming ties
short-seller,
a
pool
from
a
corrections.
Thereupon,' our me¬
self-professed inexpert as member, or his afternoons spent
Miss
Coit,
a
history
and
English
ticulous biographee, objecting to
as/ an / inside - member / of the
teacher
at
some of the interpretations, saw fit
Fairleigh
Dickinson glamorous Waldorf Crowd,.exactly
to withdraw his personal material University, are enlightening.
consistent with fulfillment of the
and proceeded forthwith to do his
of an analyst burning the
The unwitting intermingling of role
own book, which burst on the pub¬
his
speculative
and
investment midnight -oil over the statistical
lic in time for last August's birth¬ propensities, as well as his own un- manuals.
/
•
;* '
:
day celebration. Confronted by the awareness of the extent to which
An Art, Not a Science
necessity of beginning again from he was artistically "playing it byNor do the following key obser¬
scratch, she devoted a full year to ear" have been noted in our pre¬
her

news

makers

risks."

Baruch invited the young

the burdensome task of

not know

rising market and sell

convinced they are not in for a

are

entanglement in the ordinary
player's recurrent diffi¬

His

men

Notwithstanding the current Sour tune of the market, the mills
full-fledged recession. They
when the turn for the better will come, but they
know it will perhaps as early as the second quarter.

Ryan, he reversed the rule. It was
not that he lacked the courage to
the

;fvj, /

of the hardest selling in

some

duction

falling one, for himself, like

take

.t.

ing mills.
is

trader

the average

advise

would

to buy on a

";/; ■/•;;/

Meanwhile, it continues, steel firms are laying off workers,
cutting out overtime and shutting down melting furnaces and roll¬

and too late,

Although

[sic]

thoughtful investor, the
provide authorita¬
on
that perennial

twin

versal of form.

profit, he did not share the
nor the heartbreak of those

risks

it will

which

life, in fact, he got out too soon.
This
was
his ;canny judgment.
Satisfied with the smaller and

Implications of "Potato-Making"

capitalist-statesman-gambler-investor-economistabout

Most of them have quit trying to guess the month in
come.
Instead, they are waiting for a definite re¬

of abating.

buy at the bottom
get out at the top.-All; his

surer

Age" states that the mills are trimming their sails
inventory-cutting and slow buying shows signs

"The Iron

until the storm of

"Baruch has said that never in

Serious Investment

The

cerning the great

come

weekly and 'admit, it is going to be bad, although they take some
comfort in the thought that it can't get much worse. / I.

his life did he
and

according to "The Iron Age," national metalworking

ket outlook,

end.

the

who isn't there."

fortunate inflation of the
our

•those

\y ^\

cember, now

literature and

capacity is expected to rise to 60.5% of capacity for the entire in¬
dustry as against 58.6% in the week preceding, nevertheless steel
have ceased deceiving themselves about the short-term mar¬

men

that totaled up to wealth in

coups

more risks,
including
running for elective of¬
fice, so that he could serve..his
countrymen and the world more
effectively.. But she does not go
along with those cynics who are
nastily expressing regret over her
devotion of herculean biographical
efforts "in search of a great man

joins

This

optimistic pronouncements, an undertone of caution prevails.*
This week in the steel industry the projected rate of ipgot

where

knowledge suffice, and you were
alone in the twilight
world f of

in coming months, but notwithstanding, these

well for the economy

low-water

area

Houghton

tion for De¬

the

rules could no longer operate, nor

-1

Month selec¬

high-

was

personality about him, callingJiim your vown instincts.. .When
in
"the greatest living American leg- : doubt, sell was the only safe rule,
j
end" she terms it tragic that his and it was the small and care¬
make-up rendered him unwilling fully garnered profits, not the big

n/,./ |

Book Of the

mark.

garding that Presidential-Adviser
role.
In her own seemingly split

Mifflin. $6.05)',:
air e a fly a

the
This

reached

the latter area of

her subtitle, the author gives full
value in
casting ■; skepticism re¬

•

The Mam

By Margaret
L, COXt.
trate'd. 784 pp.;

him.

about

"As the year 1958 unfolds; forecasts and predictions by busi¬
leaders over th,e country for their respective industries, augur

ness

closing
avowed

automotive

week

1957

"comeback"

Motor Co.-

industry

tl
i
of 20% of industry volume and Fo;
penetration since 1930, ."Ward's Aut<

ended

goal

posting its best

passenger car production in
with Chrysler Corp. reaching

motive Reports" stated

on Friday of last week.
It added that tl
Big Three in 1957 extended their bite of annual
output to a bett
*v

the

Continued

page-

187

Volume

Number §706

The Commercial and Financial

(97)

Chronicle

areas of
Texas, Louisiana,. Okla¬
This estimate is homa, Kansas, and California/with
time has resulted in the discovery undoubtedly conservative, hecause part of the offshore region in the
little development, drilling Gulf of Mexico included.
of tremendous quantities of natu¬ very
That area in the U. S. contained
ral gas as well. Industry statistics has been done around many of the
show that for every 10 oil discov¬ gas discoveries, due to the lack a proven reserve of 189 trillion
eries in the past eight years, there of markets in the past; and hence, cubic feet of natural gas in 1955.
At the present time the gas re¬
have been about 8.7 gas discov¬ the proved reserves reported for ,
these
discoveries is: for only a serve for all of the United States
eries."'-- -7.;' 77A.' 77:-v// ./>7;
small area- around the well.
An ' has been reported at over 325
It should be kept in mind that
even
more
representative figure trillion cubic feet. We can be
these discoveries were made while
would include
the probable re¬ reasonably sure, therefore,-that an
the industry was concentrating on
estimate for Western Canada of
the discovery and development of J serves, which glyes a grand total
of 28 trillion cubic feet.
7
77 V 74 trillion cubic feet Of'virgin re¬
oil reserves. If large markets for
1
This means, then that Canada's serves by 1980 is ultraconservative.
natural gas had been available—
needs for the next 25 years can 7 The fact that a hbst of com¬
and the industry had been con¬
be
met
with
reserves
already panies are actively engaged in ex¬
centrating on the discovery and
proved, conservative as the esti¬ ploration. in. Canada proves that
development of gas as well as oil, mates
are,
and. that a surplus they believe more oil -can be
ii is almost certain that; natural would still exist.
And, as I have found. And to point u|> this fact,
gas discoveries would be higher
just mentioned, this surplus is, of it is estimated that the Oil industry
than at the present time. ;//
V,
course/ increased if the probable is annually-sp em din g approxi¬
reserve is recognized.
" /7/ VCv mately $500 million 01* oil ex¬
777,7 7; What Is a Trillion?
77 7
We next come to the question
ploration and production
about
When we talk about the demand
of what the future has in store in $1.5
million a d ay.!' Statistics
for our reserves of natural gas, the
the line of additional reserves.4
throughout/ the world/' show that
strings of zeros may be confusing.. Earlier I said that industry ex¬
huge reserves of natural gas will
It may help if you bear in mind
ploration has found 8.7 gas wells be-found in conjunctiqnVwith, this
•that the terms thousand, million, for
every 10 oil wells discovered. intense search for oil.
It is rea¬
billion and trillion cubic feet are These discoveries have
proved up sonable to assume
that future, ex¬
used to express the volumes.
In. about 3 trillion cubic feet per
ploration and development will
each case, one term is a thousand, year in the past. There, is every
prove up 2 to 3 trillion pubic.feet
times the previous term: thus,.a. indication that this discovery rate
of gas per year.
But ia adopt a
billion is a thousand times a mil¬ will continue.in the future, since
more conservative position/ let us
lion, and a trillion is a thousand a1 very /-small
percentage
of assume
that -only 2 trillion wilt be
times a billion.This mathemar Canada's, geologically
favorable
discovered yearly. At the end of
tical relationship is easily undei> sediments /have
been
actually;
25 years the virgin reserve would
stood, but it does not demonstrate proven productive or barren.
be 50 plus ^the existing proven
the amount of energy for a given
Only
one
wildcat
has
been
reserves of 24—or 74 trillion cubic
volume of gas. An average cubic drilled for each 126 square miles
feet.
7777 j'.v" 7 7t
foot of natural gas will contain, of sediments in Western Canada,Now, if we subtract ) the: 17.5
indicating
that
the
surface
has
approximately ; one thousand

Canada's

Canada's Natural Gas Pictaie

intense

By E. D. LOUGHNEY*
Senior

Vice-President, The British American Oil Co., Ltd.
Toronto, Canada
F, ,
*? » ■,* frt
,

Canada's oil industry must export natural gas without further

■

without markets and they would, otherwise, be forced

could capture—if quick action is taken—and presents data
exploration rate, production, pipeline and plant expansion,
and huge sums required in oncoming years. Hopes; therefore,

gas
on

explorers will find justification for continuing operations
scale such

that which has been

on a

practice in the past.

forms of energy. What I would
highly in¬ like to discuss is the natural gas
dustrialized nation is built; and so development to date; what we can
far, history records no country expect of it in the future; and the
achieving high industrialization essential conditions, if this source
on
the basis of imported power of the nation's energy is to thrive
alone. Home-grown power is the
make its maximum contribu¬

which

tion.

key to industrial growth.
Canada is blessed with

a variety 7/7/
The Early Days
energy—water-power, coal, pe¬
Canada's gas industry is more
troleum,
natural gas,: and ura¬ than 120 years old. It commenced
nium
for the
eventual
produc¬ with the introduction of manu¬

:■!

tion of commercial atomic energy.
has its special uses, and to

klf
A
A

in Montreal in 1873.
gas was discovered near
Medicine Hat, Alberta,
in 1833

call

forth

/ 77'." V 'J.
long faced a basic
problem in reconciling the loca¬
tion of energy resources with the
Canada

and in

greater flexi¬

even

/77-\ .,/./// 7

bility.

of" their

distribution.

i
m
m
m

comparatively recent times,
she has been strikingly solving it,
making .large reserves of energy

;

developed Canada. But

apparent

unified

important—if less im¬

result

—•

Canada.

pro¬

B. T. U.'s of heat.

parision,:

By way of com-

the small, fields.;
,

when

.1908

became

demands

too
•

•

energy

for

heavy
7
-

Calgary, Lethbridge and

other

communities in Southern Alberta
received

first

natural

Island

than

greater

decades

ago

tinental

railroad.

allow

that

created

the

transcon¬

The

networks

utilization

better

other resources, for

distribution of

prosperity;

strength

the

equi¬

national

already
achieved: lmuch
in
this
respect,
and greater things are in store.
It

the

have

not my purpose

relative

merits—of

against

costs

one

continue

have

relative

form of energy as

Canada

other.

any

to debate

—

need

for

will

Bow

gas

ing

*An

the

address

by Mr. Loughney
Club of Toronto.

Rotary

field in 1908.

the

Bow

supply

Island

supplies' part

but,
dis¬
This

the

Calgary area with natural gas.
1914

gas

was

discovered

Alberta, 80 miles east of
Edmonton.
World War I delayed
Viking,

the Viking
gas but by 1923 Edmonton was be¬
ing supplied. In more recent years,
dry sweet gas from the Viking
Kinsella pool has found its way
to dozens of communities, large

the early disposition of

and small, between
oil

When

was

,17.

Oklahoma. The main sedimentary

77;
Since
transmission systems,;
either constructed 01* planned, will
serve
much of Canada's popula¬
tion in future years, let us for a
moment consider the demand for
gas in Canada.
7
'
In 1944 Canadians consumed 85
million cubic feet per day, and in
1954, 240 million per day. Even
this three-fold increase in a 10year period will be insignificant,
compared to the tremendous in¬
creases that will be made possible

basin in Western Canada stretches

by pipeline systems now
tion or building.

7
'

at the U. S. will give
idea. In 1955 Canadians
consumed only 7,400 cubic feet per
person,
while
Americans con¬
sumed 50,000. But by 1965 it is
estimated that Canada's per capita
annual consumption will be 27,000
cubic feet,
and by 1975, 42,000
cubic feet. We will, therefore, be
approaching the U. S. figure in

1947, it marked the be¬

ginning of "The Modern Age" for

Q. White

jormatioji of the

S. -Border

investment securities firm of

the

Arctic Ocean. It covers some 700,000
mass

square

miles—a

Export gas lines, either in opera¬
or planned;- would take • one
billion cubic feet of gas daily for
tion

end of' the pipeline.)

great

land

Let us next subtract this
from the

and

to supply all

Continued

GEORGE

W; HALL

"7:7

ELECTED

HAS BEEN

OUR FIRM

VICE PRESIDENT OF

Wm. E. PolLock & Co., inc.
20

YORK 5, N. Y.

PINE STREET, NEW

jj,/

A
SANTA MONICA BLVD..

JANUARY

BEVERLY HILLS. CAL.

1958

are

ported that 4% of Canada's energy
1953 was supplied by natural

'gas and natural gas liquids, but
that this figure should increase to

Members Midwest Stock

Exchange

pleased to

.about 25% in 1980. In addition,
report indicates that Canada
will consume slightly over 3 bil¬
lion cubic feet per day by 1980.
Recent investigations made by our

announce

that

Specialists in

has been admitted to

.The

above

will

„

data

indicate

that

STEIN ROE

about 17.5
in the next

consume

cubic

feet

.....

25
J

Chicago 4, Illinois

WAfcash 2-2535 7

1 Teletype CG 1475

'amount-of

i
»

■

.will
gas

this

tremendous

be obtained?

let. us look at what we
;now have. Present proved reserves
". in
Western-Canada .are already
i

FARNHAM

Investment Counsel

--A

■

Reserves—Present and Future

First,

years.

Where

partnership

firm

indicate that Canada
will be consuming about 2.8 bil¬
lion cubic feet per day by 1975.

trillion

Board o£ Trade Building,

our

and

! Canada

•

FIELD

well with the

company agree very

Insurance Stocks

THOMAS

;the

.above

•

.in

Cartwright, Valleau & Co,

page

PLEASED TO ANNOUNCE THAT

ARE

'.tfAA,':.

135
.

South La Salle Street
Chicago •

—■:

January 1, 1958

volume

remaining 56.!> trillion,
still have 47.4* trillion

cubic feet—enough

equivalent to the combined

9643

recently by
transmission companies and gov-,
ernmental agencies have indicated
that
Canadian demand
in 1958
would be 736 million cubic feet
per day, and in
1962 would be
1,363 million cubic feet per day—
nearly double within a five-year
period.
;
The
Gordon
Commission - re¬

Wayne W. Olson

Announce the

made

Statements

Harry 0. Valleau

the

in opera¬

less than 20 years.

from

A glance

Leverin# Cartwright

Roger

needs,4we twill have, left
trillion tor be -utilized.

about 56.5

at the sales

you some

Edmonton and
discovered

Demand and Supply

Calgary.

many

before

from

still

Leduc
,

exceeded

area

available

field

gas

years.

from

fortunately, in 1924 gas was
covered at Turner Valley.

economic and

ada's

measure
of the not been taken to the "basement"
a 25 year period—or- a total of 9.1
in one trillion cubic feet rock and
thereby do not prove; trillion cubic feet. : (Incidentally,
gas
is the • fact that it will, or
disprove the total sedimentary presently, existing export permits
supply the maximum contract de¬
mands
for
natural gas
in the sdction. An example of the latter are for a specific volume of gas
rather than an unlimited < volume
Toronto area for a period of 15 is deeper drilling in Texas and

practical

the

form—will effect

trillion cubic feet needed for Can¬

just been scratched. It should be

By 1920 the needs of this market¬

table

The first commercial

duction of natural gas took place
in Ontario.
Since large markets in

whether by interconnecting
hydro or atomic electrical systems,
oil and gas pipelines, or any other
-7.

will

21 years.

the

much

networks for transporting energy

political unification and

fire

River; caught

1897 and burned out of control for

the

country's future development, the

Athabasca

continued

mediately

1889. The well
Rapids on the

Pelican

coveries, but this had to be dis¬

The obvious result of all this is

eyen

Coun¬

SOUrce.

drilled

gas.

trillion cubic feet of pointed out that many of these
wildcat wells have been drilled,
the Windsor
Detroit area were natural gas is equivalent to 37
because of drilling requirements
million tons of anthracite coal, or
available, gas was exported to the
on
government-owned lands.
In
economically accessible at mar¬ U. S. from the
150 million barrels of fuel oil.
* "7
early
Ontario
dis¬
kets
far
addition, a large percentage have
removed
from,; their
A

Biit iii
■

Essex and Welland

Ontario, in

ties,
.

has

economics

gas

Natural

great degree they are inter¬
changeable. Their future use will
a

7°

factured

Each

saleable

Sources of energy are the basic

framework,

that- of

since

oil

for

hack severely. Mr. Loughney notes the markets Canadian

to cut

estimated at 24 trillion cubic feet

petroleum industry. The

delay "in order to keep alive," oil executive asserts in reveal¬
ing operators have gone through many years of developing
reserves

Broadway

New York

(93)-

The Commercial and Financial Chronicle

On Earnings and

The State of Business in 1958

year-ahead
so.

By PAUL T. BABSON*

President,

United

Boston,

Service,

Business

would

Mass.

ran

across
„

little

„

the magazines

squib

Forecast

Report.

the

---

be up

Dividends

(1) it will be an "off," rather
than an "up," year, with the second half better than the first;
(2) spending will continue high at all levels; (3) reduction in
business capital investment will be offset by increased defense
outlays and more active housing; and (4) effects of growth
forces of increasing population, and technological improve¬
ment will be decisive over the
long-term. Concludes:* "Don't
sell the U.S.A. short, even though
you may feel like it at times."
I

were

2-3%

Consumer Credit Policies

bit

and they will

For Bankers in 1958

'■

appears that they will be
only 3-4%. Not quite a bullseye, but pretty close. ,
V
A
now

A Look

;

*■ *

Virginia

banker

bankers'

consumer

Into 1958
,

Well, I guess that's enough on V,
past history—-now. let's take a look ■»/;
into
1958.
Before ^outlining oqr j "■
individual forecasts, however,
(nay

considerations,

significant

;

credit

policies in the coming

v '4
"

affecting
and

year,

faction that the recent Federal ;Reserve Board

study rejects qualitative controls, and
to acquit themselves well so as not

exact

warns

no
:

else

one

can

credit ;;

consumer

to invite

provide

any

our

Annual Fore¬

**»*

year

o u r

business

wind'

long
climb

a.ni.P^"
.

Paul

lies ahead."

the

Market

some

here

good

reasonably

Babson

all pretty satisfactory—

were

about

pull

may

financial

billion

2.5

j'.bj.' !

forecasting

y'.fyfi
?

U.,

the^l^ m
months'
nv.the
m

are t

shall

present

anyone

expect.

Money

area,

Rate

who

could

•
-

really

Bond

hit

the

Lefs get on to th

Investment

Fil?'

tlm

i f nf

ouuwiv

for

tut

■

1958

thnn

■

^..jU,;

crcase as.follows:'..

firstfor

The
f

a c

there
b eg
a n

the ; /

outstanding

inning ;;of
•

e a s

r(;

thp

"FVderal

was

3.2

'XX'. XI

Net gain for all consumer credit

a s s u r a nces

+v,Qf

in ; 1956

billion[X

money climateoutstanding,, in
with apparent
months' period

Thomas C. Boushall

—

*** 7

;

1957
J

Business and

Outlook

wil»

yyiu,v*

1. last

factual '

qu-iek l00k at the Intel"

qrio

lnwpr

now

The International Picture
,

v»

fircf

rj.

eludes charge accounts at stores ;""
and for other services, plus single X
payment bank loans,' began to lose ■
momentunr'as to thei-strong in- >

combination of

;,<« -

.'hncinf>« in th»

also that the fore-'!'

say

which

Commodity

ture

the

which

-There

•

'get

for

casts

Price Trends, Employment, Retail

period to
of

is that there is

one

joncars and it now appears that research, careful statistical
analy-2
1957 will do well to
sis and experienced
judgment.'
•
/
-

Teach 6,200,000.
Our
forecasts

sort

these

:the total for

high plateau
—^a

production of 7 mil-

of hes¬
on

The first

large steel con- are noj.
mereiy my personal opin-"*
suming
industries,
where
our
ions.
They
are
the
considered
estimates were definitely on the
judgments of our entire United;4
high side, was Automobiles. We
Business Service staff. They
are, forecast the

repeat. I said,
"1957 will be
itation

Let

...

One

which I should
like

^
:

not all behind us.

Last Year's

oil

Forecasts

statement

Score-Keeping

year

ago, I emphasized one

now

ness and

presenting

great de?l -oyeiv

days of making mistakes in busi¬

the total.

trying.

;

...

My only comment is, that in our
line of business, we have to
keep

casts

^proved

our

;

forecast the

future, either."

it now, it is clear that

upon

consolation from the fact that

his fellow bankers

days'side, we were about light as to
science^likeq ;
..
excuse for qualitative restrictions.
"Jfr
ago
which 'seems rather appro- both trend and degree. But; our mathematics or physics—and, in
,y.
priate — it read,
forecast of total production was my opinion, it never can
be.;::^pLetusface some economic facts v5.5 billion id 1955
b
^ forecasting
•much too high. As we look back ™ *
"An economist can take some
"techniques f. as best, we can* determine them.
2.5 ^^("^g^and
a

'r| 1 i

casting of business and investment

lists

f *"

;

suggestscriteria to prevent either over-cautious ilor; ex- V
cessively lax credit terms. Mr. Boushall expresses his;satis-<•

;

I again remind you that the fore-

f ffffT.

President, Bank of Virginia, Richmond, Va.
K

trends is not

>
-

few

By THOMAS C. BOUSHALL*

price

----

forecast "up 5%"and

Thursday, January 9, 1958

our

probably work out "about even."

Economist predicts for 1958:

one

Dividends,

forecasts

the high side, but not seriously
We
said
corporate Earnings

30, 1957)

1957

(twelve

;

ending Sept.
2.9 billion;,

was

Reserve, heretoThe

eighth relative fact is that
national picture*
as at Sept 30> 1957, aU consumer ::
now
«t +v.ic
Now_as was'the case a year
credit stood at $43 billion; of this
ago-the situation in the Middlestore service and
single payment
J0rt,0fl
store service ana single-payment
degiee ot» dellaEast is far from
satisfactory. It l?^
- loang tQ individuais stood-at $9.8 !
nftnt;n„00
oc.

fore

tion.

-"•«««««

seeking to halt inflation, is
equally determined to usq.its

j:*.

—i

substantial
T:

when you
results for
most cases,

„

Tear

hesitation on yeai.)

high plateau
AT

Now

—

lets

generalities

from

away

quickly

nut

auuis

involved

one

unhannv ^ and .lstrauoir^uiat in turn leaves open

not expect any serious trouble

On the Stock Market—and on "develop in that
Earnings and Dividend items, we'Border clashes

step
and

van

^ ™ &r ^

review

would

rate

about

"medium"

I'hnt

hid

area

and

wamn

deficit

vau?«=.

among

which
rated
lowest
the
16
items
that
we

regularly

*A talk by

Executives'
Chamber

cover

our

Jones

Industrial

average,

but

ex-

mou

—

-r-r-T

tioiis to meet any appreciable
tions

; we

in
id

the

Greater

Boston

Commerce,

Boston,

Mass.,

where
++

had

expected

,11nRmnlnvmpnf

anH
unemployment;" and,

national

our

reverse may be true

1 bt but only that of the Federal
^Verame¥($270li billion as of
^

rise

because

•

•»

economy
and
the
of the corpora-

(S52m

of these securities.

any

•

billion

••

:
.

June'

A
—

basic

part of this ninth fact

.—f ~

First and

this: historically (so long as the

fifth

fact

that

banks

..to

•

andl

finance the

Seven-Eighths

business

sixth fact that

part, of

■

Bonds, Series O
.

January 1, 1988

99.75% and accrued interest

tool

research

the

the
a

Board

'and

adopted

qualitative control

than

Corporation

Dillon, Union Securities

■.

8C Co.

Goldman, Sachs

trend

8C Co.
■

Stone 8C Webster
Securities

Kidder, Peabody & Co.
Corporation

Smith, Barney & Co.
»

White, Weld

SC Co.

pertinently

that since the year
1955, when there was an explosive
consumer

buying

stalment terms, there

Drexel & Co.

significant, is
burst" of

BIyth 8C Co., Inc.

expressed in
the administration of
Regulation W.
The
seventh
;

■

the

'^policy

fact,

Estabrook QC Co.

con-

consumer

appropriate

effective

previously

had

quantitative

volume

;credit would be

Chas. W. Scranton 8C Co.

' that require a period of months to liquidate the rest of the purchase

Prif' in an outstanding amount
+

the

net
a

tion

1958

that

likely

outstanding

was a

in-

down-

increase in

and 1957 with

1956

corollary implica¬
net

there

most

reduction

instalment

credit

♦An

12,

a
°u
lL
noted from the above figures that
19°7' x"t£ an annual income
of some $345 billion instalment
£onsumer credit outstanding was
?33-^ billion, or 9.3%.
(
.

If, then, we have a lowering .of
national income, there could
occur a reduction of outstanding
instalment credit perhaps in direct
our

ratio to that lowered income. It. is
possible that if the
American
people become apprehensive as to
the degree .to which the economy
,

may

recede before it corrects the

trend and turns up again, there
may be an even further reduction
in

the

percent

consumer

national

opposed to the increase of

the

£1 uctuated — except for the wat
Jeal's, ol 1942-1945 when there
t
few
u
avaUahie
b?
duraWe
re°i
Jar^ consumer goods to buy on a

masE^^ymeBt-vbasi^^ltoJ

concluded that

Copies of the Prospectus
may be obtained from such
of the undersigned and such other
underwriters named in the
Prospectus as may legally offer these securities in this
State.

consumer

credit, the Federal Reserve Board,
May of 1957, issued a
.significant and basic policy statement;. namely, that after exhaustive :

•V

this

discussion

respect

ill

Due

Incorporated

indi-'

and

bears

overall

our

that' i with

January 1, 1958

Ripley & Co.

that has approximated 10% of the
a"n^al lncome
'
vidua!" credit
demandsVthat are- That
^ •to. say' }J^n ^ i qq4
likely to be requested in 1958 ir^ome ^ac^ ln 1933 an?Q(r
respective of whether the rates to a total of some $35' billio
of
interest on
such
borrowings outstanding, mstalmentfconsumer
remain constant or go lower.
credit lan to $3.5 billion. It has
presumably will have ample funds

#vr

;

Light and Power Company

Per Cent

Putnam & Co.

van

Refunding Mortgage Three

Price

V—•ru.*

is this: historically

00,000,000

The Connecticut

con-

cerned.

January 9, 1958

.The

;

govern-'

•

—

trend to the detriment of all

NEW ISSUE

Harriman

local

and

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

Eastman

state

(so^ l
«
tions that employ labor, we may records have been kept, namely,
-face a price rise that can impede from * 1929
through September,
public buying of the products of *1957),- the American people have
these
companies
and
accelerate *. utilized " consumer
credit as an •
the prospective economic down- assist in buying, consumer goods
•-•••••••

•-

___

This announcement is neither

The First Boston

•

30v

lwmien 'u c.

•

both sides, profitable conduct
Continued
™
ar
ifif"
U OYh
-

page 45

Dated

$298

Annual

;?dtaE«dogg

our

cnpnHitioh

spending; ™y
added .Federal appropria-

Paul T. Babson before the

Club

dl-cnxcnhla;-'inpnme

govel.fl'mental debt of $515 biUion,
during-1958. situation opens up the issue of
$3 014 for every man, woman
raids,- yes— padded defense;spending th$t may/ 'hild in,; this
country.' This
s*--rresult in a rise: of our Federal
-not include corporate
^national
debt;
-may result in
rpsnrl
tn
dpfir»if-

instance,

•

question the free world's post- M&fTtotel SualS
toV'tjon in the present co d war; that

The

tenth

Russia's
address

Credit

by Mr. Boushall before
Policy Conference, Virginia

Association, Richmond, Va., Dec.

1957.

that

outstanding

credit-bears to the total

income.
and

putting

last

fact

Sputnik

that

into

outer space has rocked the Ameri¬
can

people
out
of
their
related
to
our

placency

com¬

free

;

Number 5706

187

Volume

The Commercial and Financial Chronicle

(99)!

•

leadership

world's

and-

our

bring about

sup-

universal

The second* question is: Can that there may be further down-,
face, there banking, in fulfilling its proper trends before correction occurs.
that Russia
Hence, a of this concept. The Government are*. two questions to propound, responsive role under the first This in turn will cause a vast
jittery RepublicBin Admihistratioiri guaranteed the consequent loans* the answers to which may fairly question just propounded, gain number of people to become apand' a jealous Democratic opposi- of the people to encourage and indicate. the role of banking re- stature in the eyes of the public;
prehensive that they too may be
tionlcari cause; us to adopt and assure lenders of safe entrance lated to consumer lending in the can banking gain in public con- forced to
join the rising ranks of
pursue, rash public policies that into and use of this heretofore year ahead.
fidence as to its quite proved, the unemployed. They may fear
can< be-most
disturbing' to our questioned field of finance.
1
deep social sense; can it show-an that they will be subjected to a
economy. There can be a possible
; Such
was the success
of that
Bankings' Responsible Role
ability to bulwark the free func- lower income status, shorter hours,
resumption in 1958.
j)f unsound;;stimulating concept ,that*- when
The first question is: If presum- tions ot the private enterprise lack of overtime work and posinflationary^ trends thatjhadijust^ World;, WsruII;: and - later theing, asri do, that the economy will system; can banking truly prove sible intermittent layoffs. FinanHow, seemed to be : coming under ivKorean/Polices Action came,. tlie be* iii' a
definite* downtrend in that it has risen to a level of cial history tells us that when this

superiority

posed
l/L.

-v

control.

:■

/»/\

;

—1'

;

Bank's Responsibilities

•

iU 1

use

where

pos-

anything sible acceptance, adoption and

over
/1A
could do.
n/\i im

tofiio

have

+u«

the

ereat' bearing

thn

'War™8

SanaSSent '

n e s e

meagre

^ersai iwbhc consumption:

impact of a terminating Bobm;; a '
leveling out at a non-disastrous :
plateau; setting the scene for a .i;
resumption of the characteristicupward expanding movement of

;

These

:•

•

sumptions are that

and

;

•

those

correct

trends

exercise of Federal power

machinery
do

has

consumer

our recent boom

■

•

Gash and Due from Banks

Securities:

••

RICIIARD
Chairman

v.!

344,867,66?

GEORGE

by U. S. Government Agencies
Stock in Federal Reserve Bank

....

3,150,000.

"
,

Chairman, Executive Committee,

Bristol-Myers Company

■

;

President,
Continental Can

by U. S. Government
or its Agencies.........

Loans Secured

Other Loans.

33,581,524

I. J.

27,364,501*

DAVID L.

......

P.ulp and Paper Company

806^148,812
Mortgages:

;

Chairman and President,

/ U. S. Government Insured:
F.II.A.

Mortgages

General Cable

19,617,749'

.......

Pice President and

542,695

Real Estate.

V
Banking IFouses

...

Chairman and President,

16,754,261-

Sylvanla Electric Products Inc.
ROY W. MOORE

Acceptances Outstanding

62,033,997

7,520,928*

Total Assets

Chairman,
Canada

Accrued* Interest and
Other Assets.

Facist master-

credit

has

now

that

..........

"New Yoi-k, N.Y.

$T,804;051,252

LIAIII LIT IKS-

Deposits.
f
'

Acceptances: Less
Portfolio—

„

that
has
by
the
of
the
instalment
payment credit machinery of our
financial area made possible the

soft

goods,

consumer

achievement has

degree,

than

n a

ever

b 1

believed

century of the date of

our

many

2,000,000

President, Otis Elevator

President,
.United States Tobacco

67,582,590'
7,058,888
.

1,671,249,759'

.......

Surplus

50,000,000
55,000,000

Undivided Profits

...

•

27,801,493

•

Total

Capital Accounts

132,801,493

Total Liabilities and

Capital Accounts

addedi

President,
General

Telephone Corpdration

HERBERT

and

monies and for
_

Government

Company

STEWART

National

of the Board,
Dairy Products Corporation

pledged'to

secure

deposits of public

other purposes required by law

FRANCIS L. WHITMARSII

President,
Francis H.

amounted to $82,416,344.

MEMBER

FEDERAL

DEPOSIT

WARDALL

York, N.Y.

Leggett & Company

programs

of the Board

Chief Executive Officer,

United States Rubber
E.

SMITH

Former Chairman

New

"i.

Manufacturing Corporation

WILLIAM* J.

Government Securities

REISS

President and Chairman

$1,804,051,252

actual
U. S.

Company

DONALD C. POWER

President,

account*

Capital Stock (5,000,000 shares—$ 10 par)
I
I

Company

J... WHITNEY PETERSON
,

Reiss

wild

rising level;
get the Ameri¬
sparked and going

inaugurated

LAVITAL

and

In 1*934, assuming that an em¬
phasis on consumer credit on the
instalment payment basis could-

can-economy
again, the Federal

1958.

LeROY A. PETERSEN

16445,709'

Amount in

achievement.

Pennsylvania Co.

RAYMOND II.

a
greater
economists,*

within

create and stimulate
of employment to

run

earlier

politicians, social planners,
dreamers

Total Liabilities

the

their acquisition and use, that the
world
has
ever
known.
This?

Other Liabilities

highest
per
capita level of production of hard
and

Dividend Payable January 2,

consumption;
development

Expenses

New York &

$1,578*462,572*

Taxes and Other

comitant, integral and vital part ;)U :

attainment

PAINE

President,

;

con--,

of the American economic process
of
production, distribution, and

Dry Ginger Ale, Incorporated

MICHAEL A. MORRISSEY

PETER S.

consumer

become

G, MITCHELL

DON

20^60,444

Treasurer,

Deering, Milliken & Co., Inc.

Customers' Liability for
.

Corporation

MILLIKEN

MINOT K.

Conventional First Mortgages
om

MacDONALD

•

LUKE

President, West Virginia

745,202,78?

to'

;

Company, Inc.

HARVEY, JR.

Chairman, The Flintkotc Company

U. S. Government Securities

by 1 the
and the

FOGARTY

THOMAS C.

Loans Guaran teed or Insured

BRISTOL

HENRY P.

6,852,788

388*861,657
Loans:

MURPHY

33,991,202

Other Securities

WEST

II.

of the Board

President

Securities Issued or Underwritten

added assumption, based on

fact,

is at an end and

$r 502,571,153;

INSURANCE

CORPORATION

particularly

Continued

DECEMBER 31, 195 7

state.
;

purchase,

■

system,' vis-a-vis the dictatorship

historical

ment

IHICIHTOItS

...

U. S. Government Securities

;

the managerial intelligence of all
sectors of our private enterprise
a

self-protective timidity of instal¬

more*

iVSSETM

be*

widely conscious of the fact that

•

socialistic

•

anticipate that in early

can

STATEMENT OF CONDITION,

Credit

Lower

Standards

;

; A corollary assumption to this
Vf. r
presumption is that labor leader¬
ship, industrial management; and
private banking trustees would be
foolish bey end conjecture - unless ?
each in his own field; and in conj
. V
,
certed action, first recognized and;
set about adopting measures tof ?
II f
avoid
the
possibility
of
this?,
Catastrophic prospect;
and
by
anticipatory action■< proved ; the
I '.
control, the statesmanship, and the
wisdom that lie inherently within

Pressures

NEW

long-time (a year; two
three years) contracts are
required for the liquidation of the
unpaid balance of the proposed
purchase of hard consumer goods.
The natural consequence of this
years or

;

this

developed

so.

;;

forward

properly restrained but con-

;

mushrooming and unsound trend,,
then Government, representing
the;
overall will and presumptive wisdom of the people's elected public
servants, will step in, take over,
and

as¬

making credit too freely available
oin too lax terms, which tends to;
develop an unrealistic demand for:
goods beyond the realistic capacity
of our
industrial
machinery to'
produce adequate goods to meet <
this self-generated excess of demafld. And corollary thereto, we
have
the
history proved, valid
presumption that if private enter¬
prise, including credit' managers
arid; factory managers; does not
itself

extensiont of

ing the soundness of the value of 3.,
ciur dollar calls; for restraint in? ;

wise

out of hand and inflation threaten-•

find it

boom getting:

■'*■■'

presumptions

free; private enter-

■

•

prise -system to which we are all
so
passionately V and irrevocably
.

^■j^f ment' of

;

W»h,-this background of credit?
.

■

measuring up to the proper role
: v /: : ^
of the banking fraternity ' a^'es^t!:!1^'?^
fetial ' participants in and contfibutdrs to the Cushioning of the

dedicated.

.?°nsumer.credit would restimulate be our attitude, our response and lostf* th„ Dv,blic will*
* indnsjrial
production and urn- 0Ur responsibility. In the manage- 19.5,8,tho p^blIC ^ "

m"S

cherished'

reflection that the trend has been

—-

responsibUities bf mm
merits;: in*
meeting
with c and

our

structive and stimulating manner?

n<?p

fab-

some

-"**

^ j® pl

nresumntions and assumntions »^

affTrt

credit

Annsumer-v

" "X

nrn<?-

possible

restraints,were removed in each perceptibly turned upward in the
"i; following-^era of a^non-war eeon- xyuitu
fourth quarter
quarter ur;
of 1959,
its
and
i»ooj: what*
wnar is
is
™~~*omy>
that the*
the-use
our role
role as
as bankers,
what should
should
1958Th
sf Consumer.rcredit
omy' to the endwould
thatuse of
of our
bankers, what
restimulate

-e x*en

c^^^a

hflvA
have

;;; Government -stepped in to temper the first quarter* of 195$ and-'per- broad* statesmanship in managing climate develops, a wave of
!the extent of the use of th^mew haps a, modifying of that down- the liquid wealth, i.e., the timer cautionary buying develops, parquarter; a and demand deposits.of the people, • ticularly
ticularly in
in those cases where

r'T'vrovrrr-i nonular machmerv and to restrain

from, where

come

and what

are;

•

page

The

(100)

California

Electric

Vanden

Broeck

Also in the

Power

same

•

■

•: t. J «"•

It is understood that the firms mentioned will
to

send interested

parties the following literature:

Atomic Letter (No. S3)in

Company—Analysis—Bacon, Whipple & Co.,

South La Salle

the

rocket field whose shares are held by

missiles and
and

citing

Florida Power

opment Securities

Food
&

Street, Los Angeles 14, Calif. ;
\
V.y
Bond Survey 1957—Halsey, Stuart & Co., 123 South La Salle

Cement

Portland

Alpha

and

—

Burnham and

Co.

Cement

—

Lone

Star

(with

par-

Products

Teed

Celotex

Corp.,

Corp.

randum

view -in current

of Nomura's

issue

Japan—Re¬
Beacon—No-

Investors

Utilities Corp.,

Public

Interstate

Japanese Stocks

—

Current information

Company of New York, Inc.,

—

New York.

York

memorandum

Banks—Comparative statistics on 10 largest
banks in New York City—Bond
Department, Bankers Trust
Compapy, 16 Wall Street, New York 5, N. Y.
5, N.

available

annual

this

growth
chemical, but;' will
enjoy substantial capital apprecia¬
the

over

years

vances

the

four

whole

five

market

ad¬

historic highs.

new

Gartwright, Valleau
Formed in
>

Valleau

Chicago

ill;

CHICAGO,

Co.

—

has

Cartwright,

been

formed

with offices in the Board of Trade

Building

specialists in
Principals of the'

act

firm, which is

and Grinnell Corp.

study .of. the Real Estate Bond and Stock Market.

a member of the
Midwest Stock Exchange, are Le-'
vering Cartwright, Harry O. Val-'

leau, Roger Q. White and Wayne
W.

Olson.

discussion of 20 candidates for dividend
increases, and the
current issue of "Market Review" with three

sample port¬

folios.
Sun

Oil

■

Company—Booklet of pertinent

data—Sun

Oil-

Milwaukee Office for

facts

Company; Philadelphia 3, Pa.

Temco Aircraft Corp,—Memorandum—A. C.
122 South La Salle
Street,

historical

and

McMaster Hutchinson

;

Allyn & Co., Inc.,

MILWAUKEE,

Wis.—McMaster

Hutchinson & Co., members of the:

Turbo

Dynamics Corporation—Review—Simmons
Exchange Place, New York 5, N. Y.

Midwest
&

Co.,

opened

Stock

Exchange, have
branch office in the First
.

Wisconsin National Bank building
under the management

Y.<

of Fred D.

Jenkins. Charles W. Brew, Henry

study of New York City bank

.•deposits.

will not only re¬
attractive return tor

California Water & Telephone Company

New York City Banks—Review of net
operating earnings—M.
A. Shapiro & Co., Inc., 1 Wall Street, New York
Also

very

insurance stocks.

Chicago 3, 111.

City

holder

ceive

Union Electric Co.

Yamaichi Securities

Ill Broadway, New York 7,

patient

California—Summary

Sterling Drug—Analysis—Harris, Upham & Co., 120 Broadway,
New York 5, N. Y. Also available is the "Pocket Guide" with

Stocks—A

reappraisal—Robert H. Huff & Co., 210
West Seventh Street, Los Angeles 14, Calif.
•
i
Investing; in the Drug Industry — Analytical brochure — Har¬
ris, Upham & Co., 120 Broadway, New York 5, N. Y. Also
available is a report on Standard Brands, Inc.
j
•
•

; I
believe that this is a
very
attractive price for this important
Chemical Company and that the

available are brief reviews of Columbia Broadcasting
System, Inc., Middle South Utilities, Inc., Philip Morris, Inc.,

and

;

Power Company,

South Carolina Electric & Gas and Union Electric^ Company.

California.

Co. of

Also

McKinnon, 11

Wall Street, New York 5, N. Y. In the same survey are data
American Gas & Electric Co., Commonwealth Edison Co.,v
General

Oil

Jersey—Review—Amott, Baker
Broadway, New York 38, N. Y.

Insurance

tion

Standard Oil Company of New
& Co.,
Incorporated, 150

Securities Co., Ltd., 61 Broadway, New York 6, N. Y.
same issue are discussions of the Japanese Bond
issue-market and the Shipping Trade.
mura

Also in the

Utilities Stocks—Survey—Thomson

! ?

of business conditions—Research Department, Security-First National Bank, Box
2097,
Terminal Annex, Los Angeles 54, Calif.

■

Industry

Southern

Street/New York 4, N. Y.
4
Electrical J Machinery Manufacturing

Union

regularly since 1949
at this rate and yields approxi¬
mately 4% at the current market,

Co.-—Memorandum—Auchincloss, Parker & Redpath,
Fifteenth Street, N. W., Washington 5, D. C. Also avail¬

729

25 Broad

as*

Ohio Oil

able is

Co.,

1 Wall Street, New York 5, N. Y. Also available is a memo¬

and

O'Connor

Montgomery Ward & Co.—Memorandum—A. M. Kidder & Co.,

Gypsum Co);

Gypsum Co. and Bestwall

wood; and Sherwin Williams Co.
■
Electric Utilities in 1958—Review — Hirsch

New

Utilities

Herrington Co.—Memorandum—Doyle,
Co., 135 South La Salle Street, Chicago 3, 111.

recent recovery

lias been paid

Utilities—Surveys—Abraham & Co., 120 Broad-

Marmon

was

some¬

The dividend of $3.00 per share

Steel—Report—First California Company, Inc., 300
Montgomery Street, San Francisco 20, Calif.
1

Sutro

Ruberoid);
Plywood Industry and Georgia Pacific "Corp. and U. S. Ply¬

Company—Analysis—New York Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
/.,

ticular reference to Masonite Corporation, Flintkote Co., Cer¬

is "relieved

market, the stock has re¬
s' sponded quite vigorously on theup-side to current levels of around
;76V2.
.'Y--

•/

■,

Asbestos, Asphalt Roofing, Wallboard Industries

Electric

>>-•

py,

decline

the

Corp.—Analysis—Joseph Faroll

New York 5, N. Y. Also in the same circular are data
National Gypsum and United Biscuit.

Iowa Southern

circular is

reference

Chemical

latter

pressure
what with the

Singer, Bean &

—

this

induced by tax-loss selling and

';that

way,
on

Co., 120 Broadway, New York 5, N. Y.
Also in the
a study of the Construction and Construction
Maintenance Industry; Gypsum Industry
(with particular

tain

v.T :

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

General Public

Bros. &
same

Machinery

Company, 15 Broad Street, New York 5, N, Y. Also avail- i.
able is current Foreign Letter.
Cement Industry—Review with particular reference to General
Portland

135

much
)

Light—Analysis—Dreyfus & Co.,. 50 Broad-

New York 4; N. Y.

"way,

530 West Sixth

Street, Chicago 90, 111.
Burnham View —Monthly investment letter

decline of the past four months to
establish a low5-of-68%'. ■ I believe

Mackie, Inc., 40 Exchange Place, New York 5, N. Y.

uranium for power

Street, Chicago 3, 111. '

Electronic Research Associates— Analysis

study of world supply and demand for
and propulsion purposes—Atomic Devel-;
Co., Inc., 1033 Thirtieth Street, N. W.,
Washington 7, D. C.
vyr i'Automation Instruments Inc.—Analysis—Oscar F. Kraft & Co.,
Fund

be pleased

Ekco Products

and

Report" for 1957—Chesapeake

Railway, 3809 Terminal-Tower, Cleveland 1, Ohio.
Cuno Engineering Corporation—Analysis—Joseph
Walker &
; Sons,; 120
Broadway, New York 5, N.iY, -. ^
'
Dewey Portland Cement Company-i-Report—The Milwaukee
Company, 207 East Michigan Street, Milwaukee 2, Wis.

•

■

Transamerica Corporation and Wil¬

Company, Inc.

Ohio

Recommendations & Literature

1958

Continued from p&ge 2

Data—Opperiheimer,

—

Thursday, January 9,

Co.,

Chesapeake & Ohio ''Flash

Company

Chronicle

120 Broadway, New York 5, N. Y.
circular are data on Great Atlantic & r»-

cific Tea Co. of America,
son

Commercial and Financial

Schlass and Robert E. Schwab,

have, also become associated with

New York City Bank

Stocks—Comparison and analysis of 1957earnings of 13 New York City bank stocks—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y.
'
j
/
,

1958 Railroad

Outlook—Study—Vilas & Hickey, 26 Broadway,"

the

NSTA

office. All were formerly'

new

with Brew,

Jenkins Company, Inc.,

New York 4^ N. Y.
Outlook fior

1958—Analysis with particular reference

COMING

to Elec¬

tric Utility, Electrical

Equipment, Chemical, Rubber, Paper,
Petroleum, Metal and Glass Container, Steel and Automobile

BOND

industries—G. H. Walker & Co., 1 Wall
Street, New York 5/
N. Y.

Folder showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial
stocks
used in1 the National Quotation Bureau
Averages, both as to
yield and market performance over a 13-year period —

National Quotation

•

Syracuse will hold its

ing and election of officers Jan.
T.

McCormick, President,

guest speaker.

ATTENTION

Comb Optical

Co.—Memorandum—H. Hentz & Co.,
Street, New York 5, N. Y.

the

American

.trade

Industry's

are

Blood Bank

Baltimore Security* Traders As¬
sociation 23rd
annual mid¬

has

winter

made

dinner

the Southern

Jan. 13, 14 and 15.

Hotel.

arrange¬

Sub-Treasury

Bond

Syracuse

officers at the Hotel Syracuse.; -

their deficit and

fortunate.

Club

dinner meeting, and

division of this blood bank

being urged to make

Y.)
annual
election of

(Syracuse, N.

Jan. 20, 1958

The Security

pint of blood for that good feeling of
knowing they have
someone less

Md.)

Jan. 17, 1958 (Baltimore,

Street

members

helped

Exchange, will

Traders Association-of New York is
the

Stock

Building, Pine Street entrance,
and

Field

Investment

Syracuse. Edward

Red Cross Bloodmobile Unit to be
at the

annual dinner meet¬

20 at the Hotel

STANY MEMBERS

.'Wall

The

ments for

72 Wall

The Bond Club of

Bureau, Inc., 46 Front Street, New York

Alpha Portland Cement—Data—du
Pont, Homsey & Company,
31 Milk Street, Boston
9, Mass. Also in the same circular are
data on Chesapeake & Ohio.
&

EVENTS

SYRACUSE

—

4, N. Y.

Bausch

Over-the-Counter Index

CLUB

(Chicago, Ilk)
Club of, Chicago

Jan. 27, 1958
Bond

;

Traders

annual Midwinter Dinner

Calgary Power Limited—Detailed
report—Cochran, Murray &
Hay, Dominion Bank Building, Toronto, Ont., Canada.

at the

Sheraton Hotel,
Feb.

28,

1958

Pa.)

(Philadelphia,

Investment Traders Association

Here Is A

Stores, Inc.

annual

of
Philadelphia
Winter
Dinner

Red Owl

Special Opportunity for! You:

Mid-

Bellevue-

Stratl'ord Hotel.

major Mid-West food stole chain with
aggressive leadership,
operating 146 units, continuing to expand in an area where
super¬
market potential is the
largest in the United States.
'

Company's

strong

emphasis

replacement^ of

small

supermarkets is resulting in a significant
increase
and

earnings.

sales
Our

"FOR SALE"

OLD

with

profit margins

•

>***«...•

■'

plan

now

progress,

expected

Beautifully Bound

produce

CONNECTICUT

INVESTMENT

(

exPanaion

$250,000,000

units

Set of

FIRM

WILL CONSIDER

volume.

detailed

circular

available

OUTRIGHT SALE

"CHRONICLES" from 1938-1950

request

;

OR MERGER
Available in New York
City—Write

TROSTER, SINGER & CO.
Members:

New

York

Security Dealers Association

Trinity Place, New York 6, N. Y.

HAnover 2-2400

Phone REctor 2-9570
•:

v.\>,

Address
*

;

Edwin L. Beck

c/o Chronicle, 25 Park PL

Teletypes NY 1-276-377-378
TT

All

Commercial

N. Y. 7

inquiries

Box LI 9

Financial

Chronicle

25 Park Place, New

York 7, N.

Y-

Number 5706

187

Volume

The Commercial and Financial Chronicle

000,000. About

Improving Our
Real Strength
: ;

books

children
from
We

take

and

amuse

them

away

exercise; learning came by use of
midnight oil; morals developed
through religion and self-control.

school

Growing strong permitted no fur¬
lough from struggle and sacrifice.

are

TV.

send

buses

with

By ROGER W. BABSON

in every three

one

published

now

children to

our

(101)

and

keep them awake
gymnastics.
Children
are

not

was

made

Mr. Babson is

concern

born in automobiles; came from
becoming a lost art. mind, and
As a result, the retail trade of our luxury are
cities may be ruined by the park¬ today.

our

walking

country's "real" strength, and he
admonishes the home,
school,
business and church for making
}

ing problem. Finally, youth is
longer getting its social life
such

the "world's worst example of

for softness'." Advo¬
cates, before it is too late, that
we
make
ourselves
tougher,

; hardier,
:

••

and

sacrifice.

anxious to

begin the New Year by

shall

industrious

mote

something far more
important than stocks, bonds, real
estate, or mortgages. My text will
be
the
slogan which President

discussing

back

from

"Strength

With

brought

Eisenhower

namely,

Paris,

outdoor

formerly

'training

games

were

but rather in
cocktail parties that leave them a
"hangover";
which
is
under¬
common,

mining health, character, and in¬
dustry. Accompanying this curse,
labor

leaders

motto

for

state

1958

that

higher wages, and

"Less

their

work,

Let

comforts."

Study

History

are

rector

Women of

utive Offices in the White House,

particularly

optimistic

publishing
creeds.

But what

President

that

DONE

connection

Foreign Economic Policy.

investment

banking firm until it

Skh Roe t Faraham

merged

was

These

thrives

can

over¬

banking,1 Mr. Hall
Investment

the

active

was

AMIS Tkos. Field
•

CHICAGO, 111.

—

Stein Roe &

Farnham, investment counsellor^

Associa¬

Bankers

135
South La Salle Street, an¬
only by courage and sacri¬ tion, serving on its Board of Gov¬ nounce that
Thomas Field
has
fice. It may be too bad that this ernors as Treasurer and was its
ever
made
has
been admitted to partnership in
President
-in
1936-1937.
is
During
so,
but
it
is
true.
Let
us
not
work,
struggle,
and
sacrifice.
World War II, Mr. Hall promoted their firm.
^
) '
V >
Muscles became
strong through learn it too late!
All the progress

this nation has
been
through

come

What is strength? We all know
it consists of something far

that

than

and

MA N UFACTURERS

dif¬

very

ferent from

navies,

guns,

airplanes,
missiles.
these

read

DIRECTORS

Yet,
the

are

things that

TRUST

BARNEY BALABAN

CO M PA N Y

President, Paramount Pictures Corporation

about
~

and

This

is
CLINTON

;

physi¬
cists,
engi¬
neers, and

called

Washington

brought

U. S. Government Securities

Chairman, Board of Directors
JOHN

FRANKLIN

701,080,360

U. S. Government Insured F. H. A.

Mortgages

President, United States Lines Company

cockeyed

68,741,787

State, Municipal and Public Securities

JR.

JOHN GEMMELL,

Clyde Estates

this.

165,874,455

Stock of Federal Reserve Bank

4,511,700

PAOLINO GERLI

strength comes fhom Court¬
age,
Faith, Hardiness, and Re¬
joicing in Sacrifice. Have we got
Real

dangerous.
not;

Chairman and President,

millions

costing
be

no more

Wall

Great

Our

Director, Phillips

of dollars each,
effective than, the
China

Petroleum Company

youth*

LIABILITIES
;•

KENNETH

our

schools

provide

JOHN

(Exceptions
certain

George v.

our

others of

•••:'• i

...
.

Capital (5,039,000 shares

—

•

$10. par)-

;

•'•••

••••

....

...

••

;;
'

•

•.

•
«•

...

$ 50,390,000

100,000,000
Profits

Undivided
*

Triborough Bridge and

Tunnel Authority

Reserve for Possible Loan

Reserves for

60,685,826

211,075,826

Losses

48,169,583

Taxes, Unearned Discount, Interest, etc.

22,645,966

WILLIAM G. RABE

marines and

Dividend

Chairman, Trust Committee

armed serv¬

our

Industrial Savings Bank

Mclaughlin

Vice Chairman,

"training for
than for strength.
of

are

•

T. MADDEN

Chairman, Emigrant

ing, automatic brakes, and push¬
button windows. We are the world's
softness" rather

Surplus

accommodations; our au¬
tomobiles must have power steer¬

example

•

of America

"easy

'•'plush"

worst

'•••:•

F. MacLELLAN

President, United Biscuit Company

is for softness. Our manufacturers

living",

9,909,620

$3,348,233,137

President, Cluett, Peabody & Co. Inc.

Courage, the training of our
homes, schools, and even churches
advertise

61,502,799
..

LEITHEAD

BARRY T.

for

merchants

Liability for Acceptances

Accrued Interest and Other Resources

Simpson Thacher & Bartlett

Maginot

and

20,172,847

OSWALD L. JOHNSTON

the

Line of France,
i Instead of training our

Customers'

JOHNSTON

JOHN L.

missiles,

32,014,643

Banking Houses and Equipment

Curtiss-Wright Corporation

scientists

More
us.

save

1,255,767,526

Mortgages

HURLEY

ROY T.

called to Washington to
instill this strength in our people?
Our unbalanced setup is foolish
will

49,123,595

Loans, Bills Purchased and Bankers' Acceptances

President

being

and

HOOPER

EUGENE S.

Are any civil men

strength?

Other Securities

President, Gerli & Co., Inc.

'Comes from What?

Real Strength

may

979,533,805

HORACE C. FLANIGAN

strength. I am very serious about

this

Banks

Cash and Due from

Russia
kind
of

this

with

win

will

RESOURCES

DANA

Neither America nor

me.

Condition, December 31, 1957

Chairman, Dana Corporation

much applause
to aid in producing such material
strength, not the real strength.

■

CRANDALL

CHARLES A.

Washington amid

This whole trend seems

YORK

NEW

Chairman, George A. Fuller Company

able friend President
Killian of my Alma Mater — the
Massachusetts Institute of Tech¬
been

GREATER

■■

Statement of

Corporation

has

This situation must be changed.

—

■

■■

LOU

nology

OFFICES

Chairman, American Home Products

discuss.

Yet,

112

BLACK, JR.

BRUSH

ALVIN

metallurgists

are

President, C. R. Black, Jr. Corporation

which
Roger W. Babson

Head Office: 55 Broad Street, New York

Company

maga¬

"strength"

the

•

Chairman, The Sperry and Hutchinson

spapers

zines.

J. BEINECKE

EDWIN

chiefly in the
new

Payable January 15, 1958
/

;

v •

2,519,500

ices—but these fine men make up
HAROLD C.

only about 1% of our population.
Furthermore,' these
men
know
nothing of hardship until they
enter
the
service
after,
their

New York

Outstanding Acceptances

RICHARD

City

have

been

Liability
HENRY

formed.)

Power

recent

issues

will

the baby from
dirtying its bib or dress." My com¬
ment is that when I spilled my
food, my hands got a good slap!
Another
food

mixed
need

copies

keep

which

that
to

is
the

chew!

Over

does

•

31,508,453

2,248,494

•

Deposits

2,966,201,511

Company

$3,348,233,137
L.

A. VAN

BOMEL

Director, Chrysler
HENRY C. VON

Corporation

Applicable to

cover

such future loan losses

may

develop.

None

not

350,000,000

ore

present known.

ELM

Honorary Chairman
GEORGE G. WALKER

United
secure

States

Government

and

Other

Securities

carried

public funds and trust deposits and for other

$133,444,779

purposes as

required

President, Electric Bond and Share Company

and

books were
1957, breaking $80,-

juvenile

published in

treats ' of

ground

child

Acceptances and Foreign Bills.

great

find these significant
advertisements: A
"baby nipple

magazine I
which

Company, Inc.

Chairman, The Home Insurance

Endorser

Other Liabilities

HAROLD V. SMITH

Foolishness

SARGENT

President, American & Foreign

Some Examples of Our

63,863,804

.......................

•

habits

;

Peace."
r

With

Randall,

Chief Advisor to the President

.by

best in each of

difficulties.

the work of Mr. Clarence

government, with Dean Witter & Co. in 1953,
schools,
or V churches
to
make at which time he became a lim¬
people tougher, hardier, more in¬ ited partner of Dean Witter & Co.
dustrious and anxious to sacrifice? During his career in investment
being

Secretary,

ness,

CHICAGO, 111.—The Investment
Chicago dinner meeting

which

ease

South La Salle Street.

statistics and

The
-

clergy

bonds and held the

U. S. Treasury Department. After
his retirement from active busi¬

Hear Edw. B.

Edward B. Hall will speak on
this not being recog¬
nized in Washington? It is true the
subject, "A Midwesterner's
View of Washington Activities."
that
our
President
is setting
a
good example by attending church Mr. Hall organized Harris, Hall
on
Sundays. It is true that the & Company in 1935 and served

Why

war

title of Assistant to the

Mr. Hall was appointed'Di¬
of Trade, Investment and
great growth
Monetary Affairs in the Foreign
will
be
held
at
6:00
p.m.
on
strength
of muscle,
Operations Administration at
spirit.
Softness
and Wednesday, Jan. 15, at the Chi¬ Washington. In 1956 and 1957 he
our greatest enemies cago Bar Association Lounge, 29 served as Consultant in the Exec¬

money

America. Our

practically

•;1 Of

the sale of

Chicago Inv. Women to

Member Federal Deposit Insurance Corporation

are

pledged

permitted by law.

The Commercial

Chronicle

and Financial

Thursday, January 9,

. . .

1958

(102)
'

mrtr
for
more
a series of laws and,.by .a Cornclamor
d risks mission whose rules and point
of
credit, particularly Rom bad
baged on a half
century
and from little business. .Yet the v
when the railroads were
main reasons foi
this-c
and'prime movers of ourr.commerce.
that we-have.gone.too last and
P ^
surprising that ^they .are in
we
have
already , bmr

As 1957 Passes We Notice

Our Troubles Are Man-Made

nothing.

for

something

great

Little

matters of billions show up in

By CHESTER D. TRIPP

The basic

much.

the

faC(v\ difficulty

pr^blp

under

•

circumstances

.bl,t!;that have made them highly cornunder/" the is' to : get /back to n° \_v? y'To, a'
petitive, mot between themselves,
head
of
transfer
payment's, ,' ih /who can
but to a, which was our original
concept,
other words, expenditures without statesman it is one th l g,
jg blit between several other forms
compensating .contributions'. ./We group
figures,

government

Chicago, 111.

Economic Trend Line Studies,

have

with large ideas of what the
government, our /. neighbors and
life in general owes us
in the
way of a living.
Forty million of
us
are
well
versed
in. getting

year

•

of the unrecognized mistakes glossed

Mr. Tripp pinpoints some

that

and

cured

■

author

■

troubles

our
soon

are

detected.

years

How intelligently this is done,

the

face

also

new

year

ofl:transportation/',

the

far

opines, will determine how much better conditions will
look at the end of 1958.

astray.

all; important,

somewhat
the

subsidized,/but in
creating;' an economic

.main>

imtte'Ztl^rfmerdhougldlossl^ataosphere

and, thus, should be

man-made

undei^gie^pi
and J

^ somer?
with /a something
„else^
.
. .
t
strong belief of built-in protec¬ thing else tor.many .peopleto
tion
for the individual,
protec¬
tions that originally were based
on
sound objectives," but unfor-, of ultimate consequences..
tunately over the years have gone

of boom, some of them
social, political and legal, and others economic, and calls for
their correction. Holds our future "is bright without limit"
by the cloak of past ten

over

unknown a few

years

-Vv/v-v

them
oiov : tneaana
louawVMV:
tfuuoiup ^ ae1957 .closes and
I cannot help but, feel wanting. Bu^voter or a.bard tweenr unionsmnd- the^ public. +We
Messed borrower being human is can say with some sati?faetion
impressed with the field day; the ouite nroiie to listen, to the advice, that steps are now being .taken, to
demagogues, politicians with their
seems to re ievc his
iimnc- clean up the gprft. misuse of union
ears to the ground, and opportu¬
riiate diiucuiucs.
dUHculties
.
funds, but, are we willing to touch
,
nists handling
industrial voting'
on the
misuse of union power?
blocks in the country, will have
Railroads'-Plight / f..££ ' j Here, in certain ways, we have a
facing the months ahead. At the
,.r
;ArnhipmVwith'Tegali?ed monopoly that deprives
same
time, I realize what a dif-.
workers, of
ficult future a real statesman has/

the

year

1958 opens,

;rWe

have come to the time of fering will be involved in skim¬
when it is our custom- to ming off these errors is hard to
briefly review the trends of the say, but it can be stated categoric
year we are just finishing and try cally that the mistakes were manto
made, generally the result of ig¬
project
those : trends,;
norance, stupidity or selfishness.
The price we will eventually pay
or
the effects
of them, into
for them depends on how much
the next year.
wisdom and intelligence we can
year

The
3 9 5

7, leaves

apply to the problems we have
brought on ourselves. I think it

the

American

year,

people
e

with
t i

that

our'

gains

the unsound

yea r

and,

the least,
going out

like
The

lion.

Chester D. Tripp

change

has been

change were inevitable and
have been apparent for some time.
been

year

record

have

and

been

*he

much

read

though

literally

chickens

American

had

pot

every

speak,

you

was

tually

and

divided.

(

cities

even

our

have
.

realize

were

community, but clear¬
facing one of those

the

impossible

moral

task

social

and

could

Our misjudged
experiment in prohibition was so
behind

that

lis

the

S
they

lessons

Yet

idealistic

people, in theory we
against sin, generally favored
prohibition
and
abhorred' 'seg¬

year

we is not

the

JOHN M. BUDINCER

This

exceedingly
in¬
volved problem that we faced in
the dying year seems more social
and

moral

than

economic

unfolds

fiS

find that there are some
economic

that

aspects

would

year ago.

nized

not

na-

we may

profound

the

problem
have recog¬

J. P. DRE1BELB1S

JOHN W. HANES

final

months

showed
dividual
well

1957

decline

being

cer-

in¬

many

quarters, and it is dawning on
many that perchance we are fin¬
ishing a 10-year boom where nu¬
merous

economic

unnoticed because
merged in the

perity.

ir" To
sure' like
webe could

true,

use

think this

but

old-fashioned
tthat

The

all the rest of the

else,

the

really

cling

needs

have6 °J P,ropoition
and> therefore,
broader
view
of
what
a

mankind's real problems

suf¬

••

21,429,835.67

v'-

22,063,268.70

•

9,607,535.87

.
*
'

Customers'

Liability

Acceptances

•

60,020,986.89

$2,910,512,856.21

Director,

Senior Vice President

LIABILITIES

the Board,
Melville Shoe Cor/>oration

Capital

I'rrsiilcnt and Director,
Kern County Lund Company

New

(par value $10

per

share)". $

Surplus

160,000,000.00

Undivided Profits

York

40,299,500.00

56,439,887.12

256,739,387.12

HENRY L. MOSES

JOHN M. OLIN
Chairman of the
Financial and Operation Policy Committee,
Chairman of the Executive Committee,
Olin Mathiesan Chemical Corporation

•

POMEROY

New Jersey

;

Dividend Payable January 15, 1958

"Deposits./;.
\

Reserve for Taxes, Accrued

Expenses,

etc.

3,022,462.50

2,556,159,289.70
27,945,391.91

B. EARL PUCKETT
Chairman
>

of the Board,

Allied Stores Corporation

PHILIP D. REED

Chairman,

General Electric Company

WILLIAM T. TAYLOR

B. A. TOMPKINS

Less Amount in Portfolio

5,769,699.85

62,975,898.88

Chairman,

ACF Industries, Inaixporuled

THOMAS J. WATSON. JR.

Acceptances Outstanding $ 68,745,598.73

Other Liabilities

York

3,670,406.10

President.

$2,910,512,836.21

New

International Business Machines Corporation

WHlflNG

Chairman,
)
Finance Committee,
Consumers Power Company

Assets carried at $

108,006,^0.9-5
<

December 31, 1957,
for other
purposes.

were

pledged

Entering 1958

MEMBER >OF

THE .HIM R A I.

DEPOSIT

LNEURANCF.

CO RPOR

to secure deposits and
.

are.

larger°TSa 1lrger debts and
roductlve capacity per
known
w anT
VG0Dle
ever
known.
We
also
enter have
the new

pros¬

19,833,613.16

;

Accrued Interest, Accounts Receivable, etc.

GEORGE G. MONTGOMERY

JUSTIN R.

were sub¬

How much time

.......

1,448,257,250.48

that

We will enter 1958 with larger

rising tide of

idea

wh^e through
+i
adJywisdom,
educated
people
who,
keep their
nave

•

Chairman of

will

went

mistakes

they

world

still

WARD MELVILLE

an¬

ZtJfJHiWe haye larger technical

•

President and Director,
Grace Line, Inc.

DANIEL E.

always

Municipal Securities

•

Olin Mathiesan Chemical Corporation

feel at the very
Russia being first in

scientists.

•

LEWIS A. LAPHAM

really looks as though we
of scientists-as a matter

evervbortv6
evei ybody

•

514,033,626.24

Ecu- York

WILLIAM B. GIVEN. JR.
Chairman,
American Brake Shoe Company

°ThCTMernothing
°«s.cientific
gadgin our rec¬

..%

con¬

/li rheie

,s than

•

Banking Premises.

Senior Vice President

WILLIAM H. MOORE
Chairman of the Board

■

Other Securities and Investments

President, Cullman Bros., Inc.

THOMAS A. MORGAN

ehv

815,266,719.20

New York

HOWARD S. CULLMAN

complex that

ord tha

State and

S. SLOAN COLT

Partner, Moses and Sinycr
'

President\t

nounced to the world the inferior

Discovering Mistakes
tamly

Vice

o/tlic Advisory Committee

Chairman

BRIAN P. LEEB

the factsweturn
out
have

wherein

Loans

JAMES C. BRADY
President,
Brady Security it Realty Corporation

en¬

have felt free to wire

thought

.} U. S. Government Securities

Chttirmiftt, Executive Committee.

were

regation.,

President

great

did

£•>:'..

particularly

that

and

If. ARDREY

•

probably substan¬

election

off

DECEMBER 3E 1957

ASSETS

Cash and Due from Banks

FRANCIS S. BAER

gratulations to the Russians and

legalistic methods.

thereof had been lost.

ALEX

then quietly gone to work on our
own
scientific
problems instead

solving

problems

expanded econ¬

now

of facing

DIRECTORS

.^°uder how different things
!]aV<n
?? five Eisenhower
years from
now
it
President

loggerheads.

verge

—

un¬

expenditures far beyond
the point of good judgment.

began to realize that

by the

?t°^s. 01politics
democracy
expressing
is about to

prejudice, custom and the law of

were

ask

■

E. CHESTER GERSTEN

great social imponderables where

Many of

might also

point of view

This is

that

too,far

almost

CONDENSED STATEMENT OF CONDITION,

•.

interesting combination when

courage

but

<nown

tial extent?

were

presently

democratic

were

One

governed by

are

solutioif is'in sieht
ent R™6' 110 S0iull0n
s m sig t.

and

NEW YORK

the

tinJ.ed ™lth an urge to increase
national spending ori a

itself

land

They

0f the public, but at the pres-

ence

msti-

even¬

beginning to recede and
this
phenomena
properly

American
realized"
that
segregation was anachronism in a

the

half free.

man-

arc

slave

half

arc

Bankers Trust Company

omy was

every

itself

Russian

that

will

^hat
could be more perfect than
to realize that

here to stay.

Philosophically,

destroy

Fiom

As the year

states

The railroads

that

enormous

theory

economy

wisdom of its acts.,-

ever-

closes, a number of
misgivings have raised their ugly
heads.
In
the
first
place,
the
whole
question
of
segregation
had come to the fore.
Districts,

nursing^ more,than

handling.

and to hear
in public life

men

Lenin's'

prove

two

* tuti'ons

enough.

need

papers

the

capitalistic

that

and

standard

expanding living

matter of

our

many

tures

; few

few years ago.
months we are going
a

labor, but alb is obviously not these
trends get bad
At the present moment theythey-will; be cured;
by

well.

have

just ahead of us, expendi¬
that may go a long way to

until

greater social interest,

even

years

One_ hundred seventy
people never owed
so
or,

For

he faces greater difficulties

than he did

users

congress-

if at the same
being a states¬

time he aspires to
man,

ours.

bottom there has
sort of thoughtlessness in

money

executive

ihtor the; price structure of/ the
W6Jl~bGin§j xllGyj;;
^y-j
yv j havp no doubt thst if
material,-and employers country, i have no aouot tnat if

the verge of a

months ago, ever felt more secure
about their future.
It seems as

the

top to

million

senator

incorporate its demands

able to

country

circling

realize that we are on
public hysteria that
may express itself in-national ex¬
penditures in
the
months
and

air.

rnan, a business
union leader, but

plishment of Russian propaganda
is

did.

From

may

sense

manmade

ever

anybody else

we or

broadest

all

statesman in the
of the word.
He

say

scientific interest, but the accom¬

further into debt than

gone

probably

face, and I

accomplishments of Russian,

scientists is

people

Americanu:railroads.

very

actually

were

close, the
sensi¬

that

fact

....

globe and almost hourly vio¬

The

rather

and

optimism, we have carried out the
greatest capital construction pro¬
on

the

assumed to be

rotating
enthu¬
siasms.
The country started full
of optimism and, based on that

gram

comes

American

lating the air rights that

the

has

1957

tive

our

1 think the trends that have made

some

170 mil¬

trends that

average

satellites

and dramatic but

suaaen

boundless

and

lion people have given way to.
this a reasonable expectation?

say

repair

easily

greatly mixed.

lamb

could

T h

that, if

say

would act wisely,
could consolidate many of

o n s

opened like

safe

assume

TrTrTbT

our

til

Number 5706*.

187

Volume

The Commercial and Financial Chronicle

•

.*••/•

mechanism

banking

politics?

Too many

peo¬

feel'.that banks .are lending

ple

their

The facts

big-hearted.

little

are

lending the public's

.and the banks own capital
'should be considered only as re¬
serves.
It is the people's deposits
that are up for loan and we would
money

,be better off if we thought of the
custodian rfor
these funds and encouraged un¬
der the law to dispense them in a
banks ./ purely

seem

trends

for

1958

tiresome
list, and that is the current con¬
cept of the Department of Justice
controlling operations in terms

monopoly. Is there

of size and not

in such a shift of

real logic

point of/view? ;; I do not presume
to have the answer but I gravely
doubt the wisdom of the change.

would

Loans

should

rates

would

recede

Government Budget on
expenditure side will remain
high,
could .increase;, however,
declining national income could
reduce the taxtake materially. A

deficit

and

not

this

fiscal year.

considerable/ pressure >;as
are

budget is
1958-1959
1

•

;

the

end

Inventories should recede for

considerable period.

tendency for working hours to
with an accompanying

decrease

decrease in takehome
pay.

its

than

power

its

and

power

the sunshine of

Hutton &

Riley has joined E. F.

Company, 61 Broadway,

York

manager

its

department, it

municipal

was

sistant

RAPIDS, Mich.—Don¬

Matheson is .engaging in a
securities business from offices at

Wealthy "Street,

with

Riley,
Drexel

bankers,

has

Mr.

possibly more
to reproduce

year ago.

firm

Matheson

and

formerly

with

name

the

past

years

in the municipal bond field.

Don P.

He is

Company.
,

was

Matheson,

Bond
on

New

York

a graduate
University of Manitoba,
join the •Association's head,

This advertisement is neither

Last

Joins
*

Topsy

said about;/our* tax;
situation.-; Hasn't1 it grown
like-

and

simply
that

reason

nor a

solicitation of offers to buy

any

FT.

MORGAN,

McGraw is

of these securities.

offering is made only by the Prospectus.

January 7, 1958

about

There : is

•

question
getting it in

are

$150,000,000

to whether
logical way.

taxtake is based

Over 75% of the
on

grave

individ¬

incomes, corporate and

International Bank for Reconstruction

and these are two variables
that could
suffer extreme tem¬

ual,

world

approaches

even

and

No country in

recessions.

porary

the

such a large percent of
tax requirements from income. A
recession would make us and has
made us extremely vulnerable to
mass shifts in the national indus¬
trial activity. It is a fair question
to ask whether the main trouble,
with so-called little business, is

Development

raising

that

been

have

they

Twenty-One Year Bonds of 1958, Due January 15,1979
Interest Rate 4/4%

drained

by taxation that they could not
expand logically without incur¬
ring too much debt and thereby
becoming
very
vulnerable
to
minor
changes in the economic
cycle.

Price 99.50%

Mistakes

Correcting Manmadc

Plus accrued interest from January 15, 1958,

pessimistic
their magni¬
tude, but they represent the prob¬
The

queries

lems

have
It

solve.

all walks
try to

statesmen in

that

life

seem

because

simply

face

not

and

the

spirit

pessimism that I mention this but
our
well-being depends on their

resolved.

somewhat

being

Copies of the Prospectus

may

be obtainedfrom any of the several underwriters, in¬

cluding the undersignedy only in States in which such underwriters are qualified

therefore, state again that the best
way to handle the road ahead in

to act as dealers

in securities and in which the Prospectus may legally be

distributed.

1958, or longer is a reasonable
recognition of our social acts that
have

caused

years

the

following
tions

been

The First Boston

error

Morgan Stanley & Co.

Corporation

depressions

become

can

bump

have

the accumula¬
increase, adjust¬

and

ments

out many a

that

road

Ten

rising prices

and

have smoothed
in

trouble.

the

boom

simply through the lack of wis¬
in
handling
our
social,
political and legal mistakes of

The Chase Manhattan Bank

The First National

dom

the past.

sia,

are

see

not only due

Sputniks,

the

to Rus¬

lack of scien¬

tists,

1 they
are
far more fun¬
damental— due to organizational,

mistakes that

ings

the ordinary work¬

the

other

hand,

the main, we

country

teeming

the

future

without limit.

with

people

willing

for better ways of life.

aspirations
and

the

-■

are

the

main,

Incorporated

Guaranty Trust Company

of New York

Manufacturers Trust Company

Bank of America

Harris Trust and Savings Bank

N. T. & S. A.

The Northern Trust Company

Continental Illinois National Bank and Trust Company
of Chicago

Kuhn, Loeb & Co.

Dillon, Read & Co. Inc.

Blyth & Co., Inc.

Drexel & Co.

Eastman Dillon, Union Securities & Co.

Glore, Forgan & Co.

Kidder, Peabody & Co.

Lazard Freres & Co.

All these

Goldman, Sachs & Co.

Harriman Ripley & Co.
Incorporated

reasonably possible

closing it is well to keep

mind

Chicago

Morgan & Co.

have the richest

the face of the globe,

work and fired with the ambition

of America is bright
In

naturally

democracy

generate.
On

Chemical Corn Exchange Bank

The First National Bank

The troubles that

horizon

J. P.

City Bank

of New York

old- saying

all

our

man-made—and

troubles

social

be really detected.

errors

soon

are

tant thing we could do is to cure

can

Merrill Lynch, Pierce, Fenner & Beane

Salomon Bros. & Hutzler

that—in

the most impor¬

our

Lehman Brothers

they

Smith, Barney & Co.

Stone & Webster Securities Corporation

•

's«

Colo.

—

Company, 114 East Kiowa Ave.

NEW ISSUE

no
question
this latter point, but there

money?

:
-<

with Paynter and

now

solely for
need
the

Paynter Staff

kept

been

change

much

without

offer to sell

(Special to Tee Financial Ciikonicle)

word

not- least, ? a

but

should

The

■

Jan.

on
,

and

the Board of Governors of the

/:•,•//?■. Municipal Forum of New York.

Inc.

1958..

member of the Municipal

Club

for

Southeast
of

Education

Annett, who is

the

Ed¬

As¬

the

will

investment

spent

Director

appointed

formerly office staff in Toronto

was

&; Co.,

business

been

tion of Canada.

/',/■■/'

who1

has

The Investment Dealers' Associa¬

bond

announced by

_";iy

investment

monton,

New York Stock Exchange, as co-

Mr.

ald P.

2135

the

City, members of the

Rploff E. Cutten, managing senior

f D. P. Matheson Opens
GRAND

Of IDA of Canada
TORONTO, Canada—William S.
Annett, who has been active in

have a good deal of bear?.?

It may

Annelf Educ, Dir.

E. F. Huffon & Co.
William J.

New

face.

Riley With

partner.

under

Federal Government will do all
in

Win. J.

1958

might look much better, depend¬
ing largely on how intelligently
we can handle the different prob¬
lems that

made.

national

improbable for. the

Conditions

National Income will probably
recede, corporate earnings will be
under

the

year

trend by becoming easier.

adjustments

react, to

ing on the obvious hesitance tthat
faces industry in 1he coming year.

the

Employment will be spotty with

i One other point w.orth mention¬

any

Federal

personal guesses

throughout most of the
money

(103)

;

to be in order:

Bank

ing before we close this

and sane manner.

safe

the
very

economic

should be under pressure to be a
that banks are

A few

and, therefore,

money

own

Predicts Economic Trends

understood

well enough by the public to keep
it out of

White, Weld & Co.

Financial Chronicle

Commercial and
12

Thursday, January 9,

(104)

Since

merchandise and the factories we

Will Bosiness and the

othei^hand,

havelubstantially

exhausted the financial resources

Muket Tun Up in
ftX.By peter

l. bernstein*

1958?
•-

needed to carry

hectic
As

;-r?

wiH have

day, "When I was a boy, we
got a new pair of shoes before the old ones were all worn
out. It could be that that attitude

of whether'

spending

urge

Chips,

the. Blue

particularly

stocks,

unattractive.
going to provide you with
supply of gloom this
afternoon. But somehow I do have
amule

- in
the. vitality,;. ftnancial solvency,

sufficient-- confidence

political

and

economic

and

of the Ameri-

people to

the^spectre

tjg&i
the

resent,

least.

ta^VTno?mallv

fluences.

Nol o^y

Disappearance of Spending Urge

need

and

the

money are no
the economy.

ofgrowth
1953

eye!

pression and the war, and, to boot,

services in the United States

°f the stimulus these back!of oC

Stocks drop much faster than they

demand gave to the economy from
1946 to 1953. Now we are all too
generously

with the

stocked up

Sbing

total

1953, we find t at
of goods and

output

^ausiy.
with

today
^

preferred

over

was

has re-

operating

at
compared

rate

some-

90%

thing over 9U/c.

^fulthm*pTTce^hicreasfs- outsMefwrnitories

will keep the
grew at an average annual com- pressure on the price level downpounded rate of growth of 4.6%— ward. Supply, in other words, is
well above the long-term rate of
a

little ovei 3 /o.

fast

the

six

too,

consumers,

that

y eai s,

homebuildeis

mainl¬
facturers are having a hard time

of it. Just think of it-in the past
10 years we have turned over 60
mimon cars _ more than doub|e
of

number

the

19451

houses

nonfarm
the

same

cars

of the

onset

bear

This advertisement is neither

market.

have

been

before

stocks

common,

1958

any

of New York, London and Moscombined!
.

There

further

spending

.consM^^
vitality■ m
tremely
tween

the

evidence that
may

''i1

%as

Now,

a£ter

taxes
on

of these securities.

January 8, 1953

has

first step must be to

our

issues.

the

What

are

$50,000,000

really trying to find out here today? My vase is not proved by
the simple and obvious fact that

•(

■

downtrend,

will

everyone

cheeful

than "he is

also

decline
brief, then
be feeling a lot
year from today

not

right

But the

than

1958
it

the optimist

was

business

only
in

.«■

the

this

end

and
new

year,

Dated

Then

real

confidence

ment

99%and accrued interest

for

running

Copies of the Prospectus may be obtained from any of the several underwriters,
including the undersigned, only in States in which such underwriters are qualified
to act as dealers in securities and in which the
Prospectus may legally be distributed.

for

spending could save the day
then only if the Govern¬

ment acts

promptly enough.

Recovery Time Uncertain
The real

issue, then,

is not how far down

as
we

the

road

back

see

may

during 1958, but whether
be

January 1, 1978

■

Price

cover, in which only a very heavy
and undesirable dose of Govern¬

—and

Due

ac¬

general loss

and

January 1,1978

January 15 1958

vigorously
heights by
the profit

could

through

mess

Company

The

will become very consid¬
erably worse, we will not have
enough jobs for our maturing
youngsters
entering
the
labor
force, and plant and equipment
expenditures will shrink still fur¬
ther.

cru¬

squeeze

4XA% Notes due

slightly

cial and critical issue.. Unless

tivity is clearly
climbing toward

■

ac¬

1957.

duration of the decline is the

now.

proved

lower

the

and

case

tivity

for

shallow

Commercial Credit

business activity is now clearly on
is to

'' ' '

■

The First Boston

it,

Corporation

Kidder, Peabody & Co.

will

Goldman, Sachs & Co.

before

Stone & Webster Securities Corporation

Blyth & Co., Inc.

1959.
•

admit

right off that Gov¬
ernment spending is on a rising
trend but that, on the other
hand,

Eastman

Merrill Lynch, Pierce, Fenner & Beane

least

six

necessary

nine

months

shake

our

Dillon, Union Securities & Co.
-

will
ex¬

*A talk by Mr. Bernstein at the
Lunch¬
Forum of the Harmonie

York

Club,

City,

Jan.

1958.

Lazard Freres & Co.

Incorporated

cessive supply of business inven¬
tories down to a more workable

eon

Harriman Ripley & Co.

New

—

.,...

Smith, Barney & Co.,

Salomon Bros. & Hutzler

White, Weld & Co.

ex-

the income consumers had

available

NEW ISSUE

show less

close relationship be-

passed into history.
define

built

cow

wellioexc.Continued
«nt pi c
y,

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

road

million

years—enough to

The

the

than

good policy to begin to nibble
a year after

Thus, bearish as I shall appear
to you in these remarks, I never¬
theless reject the word depres¬
sion, and, indeed, may well be
recommending the purchase of

and

automobile and appliance

at the market within

the

seem ex-

temely well stocked with goods,
There should be little wonder, m
the. light of ail the things that
have been bought m the last 10

decline like this one, it may well
be

other

Consumers Overstocked
^

consumer

This cxKssive capacity to pro-

anJ ' Jj1
5

1950_51

only.steady or have declined,

g-KSrsS*1 &S&&sosi
Xstry

*
^

peak

result

buta
•

ex-

and, although they may be
in reviving after a major

^ ^

Overoptimism

ignored.

suited "'substantial excessI pro-

high

the

sofarawavhuimeore^nfnprice

warning of a
and auto-

Since 194b corpoi ate prof its

-s

weakening in housing

If we measure from 1948, which

^vefethe°bottomftm mayPnofbe
slow

rate

was
a business
next

as a

ea^

and

Since 1946 corDorafe nrofitQ

sub-normal rate since 1953.

spend

ba^e,

pect the stock splurged still further

go up,

lhe

extraordinarily

longer present an
We

was

of demand inherited from the de-

though'i

urgency

tra?^d ^

exhausted the enormous backlogs

0f compen-

tge

cant

™

digest -he

Drocesg

contemplated in

postwar years, profits have been

Second thisi process oi comye
sation and adjustnjem i
i
to be aU the

?fgnowth which charatter zed the weax

Furthermore

Peter L. Bernstein

Askew

Plans

...

^tssomeof which follow from

issue-for

Former
„

twffl

how

pend essentially upon rising proflts, and in our postwar economy
rising profits have been concertP
ye£g of rising pricJen

1948

level, the basic questions are: (1) ment is based. The evidence con- c
in
the
earlier
What-is the outlook for consumer sists of live main groupings oi
Thi annoying human habit
spending, and (2) what is the outfuture wiU
look for .^business spending on.»onp another, ,
.
'
simply be a smooth extension of
new plant and equipment.
Growth Indigestion
the present undoubtedly has led
Although I could discuss these
still digesting and in this instance to serious errors
two factors separately, spending
Fust, we are still aigescing
ana
npss Manningc The signifidecisions on the part of both businessmen and consumers today are
motivated by much the same in-

sophistication
can

jness

those

annual

®rowth

I am

than

plans to spend mbney for plant
equipment.: Such plans de-

from
.

nro->

1953

hesitate to drown you
of facts and statistics,
but, as this is the gist of my. argument, I think you should know
the evidence on whichmy arguNow,

still

are

^|^ p^^.nded
c
P

matic. The
growth la

industrial

The figures-■ *1
duction

a homely to 1953 and only 1.7%,from
the very to 1957.., ,^
bright and absolutely valid quip
Thus, we apparently ran too
'I'.read somewhere recently- fast up to 1953, and now we must
"Prosperity is the result of spend- both compensate for that extesing money you don't have on the sive rate and also adjust to a more
things you don't need!"
normal pace.,, ,
■

likely than rises and with the still below-normal spread be¬
tween bond and stock yields below normal, Mr. Bernstein
concludes

•

a bullish

Most important, I believe it will

to .illustrate

example

by businessmen as well as consumers is
over.
States corporate earnings are moving downward, and
because of pressure by excess capacity on the price level, will
continue lower throughout 1958. Regards dividend cuts more
the

long:
term^ave
it has "e

of 3%

This is

is coming back."

depression, but only of its duration.; Asserts

clients 'said the

meanwhile it is hardly

long-term average

a yea',

never

Jl\'r

Investment counsel maintains it is not a question

one

_•<

J'""1.
than the

other

Bernstein-Macauley Inc., New York
,Financial, Economic, and Industrial Consultants
1
'*

Executive Vice-President,
-

forward this very

boom.

l^uM

^.however.

it was

than

1953

and

page

the

V
18/

Volume

Number 5706

The Commercial and Financial

Chronicle

complete control.by his employer,
would he ultimately find him¬

Another Look at Government

;•

Bargaining

tain

Former Chairman, National
Waffe

still

national labor
harmful

"that

authority

the

governmental

warns

via

terests

so,

have

been

self-confidence

"cut
on

down

government

the

extent

necessary

[
:

degree of

p e

relations,

fruitful

Almost
bor

Nathan P. Fcinsinger

Board

limited

the

punshment

At the

with

par

affecting

time, the pub¬

same

lic has ^

vital interest in encour¬
free competition between

labor
in

and

industry as' elsewhere

'economic

our

these

society.
When
conflict,
as
they

values

sometimes

striking

the

do,

problem
balance

proper

difficult and delicate

Free ?competition

right

of labor

ments

drive

policy.

;
•

for

its

power

Cash

Due

and

from

Bank*

U. S. Government Obligations
"State

the

Wagner Act* thus obviously seek¬
ing a departure from such a pol¬
icy. By that Act, adopted pursuant
to

and

LOANS

Municipal Sh&urities,

Other SecuritIes"'/

'
.

...

and

the
the

own

standards, to establish their
system of adjusting disputes

lective

agreements

own

means

The process

bargaining,

then,

of col¬
is gov¬

erned

by considerations of coop¬
eration
as
well
as
competition.
Competition may lead to strikes
affecting industrial peace. Coop¬
eration may lead to injustices to
individual
lead

workers.

inflation.

matters

Either

Since

public

may

these

are

what
role should government in all its
branches play in. the collective
concern,

bargaining process; what role has
it
played; and what role is it
likely

future?
I

play

the

forseeable

should

and (2)

LIABILITIES

1,156,472,300

Liability

...3.88,845,587

110,759,623

•

3,867,671,355

Federal Reserve Bank Stock

Due

discuss

these

compel

International

mated.

tive

Reserves:

•

with

did

not

conduct

Items

'■

'-X'-,

left

Capita

the

regulation

labor-

hamper the growth of unions
through! restrictions on strikes,
*An
at

the

address

by Professor Feinsinger
Michigan State University's La-

and

Industrial Relations Center, East

Lansing^^

32,873,784.

Accrued Expenses

and

64,675,406

8,280,000

•

$240,000,000

{12,000,000 Shares-$20 Par)

and

•

Transit

with

Branches

......

40,847,145

Surplus

15,495,482

Undivided Profits

9,636,833

380,000,000

$7,636,750,881

8"!,299,440

Shareholders' Equity
Total

.*y

Figures of Overseas Crunches

are as

to secure

Public and Trust Deposits and for other

702,299,440

.....

...

$7,636,750,881

of December.23.

87.489,791 of United States Government Obligations and $7,795,200 of other assets are
$387

labor

purposes

required

pledged

permitted by law.

MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

Congress did not attempt

Chairman of the Board

President

Vice-Chairman of the Board

HOWARD C.SHEPERD

JAMES S. ROCKEFELLER

RICHARD S. PERKINS

to determine

nor

CITY BANK FARMERS

majority union.
attempt
of

Trust

Congress
regulate the

unions

towards

their

Head

It must

:.uj

administration of

Statement of Condition

be difficult for the

relation

was

State

Loans

Banks

and

Municipal Securities

.$ 49,774,371

23,911,032

300 97^

2,342,908

R"8M™

•

Bank Premises,

Furniture

and

Other Assets
w

lay

Capital

$10,000,000

1
.

•

10,000,000

•

Undivided Profits

8'245-533

••• '"•

600,000

Equipment

.$124,176,818

{Includes Reserve for Dividend $721,371)

Surplus
.

LIABILITIES

Deposits

79,146,632

......

Federal Reserve Bank Stock

is
a
tribute to
its
strength of
character, its adaptability and its
regard for law.

questions

functions

trust

1
.

bilateral

The capacity of American

13,464,953

2,800,511
5,010,874

Shareholders'Equity

33,464,953

■
*

Total

$165,887,304

Total

$165,887,304

•

$0,487,480 of United States Government Obligations are pledged to secure
I'ublic Deposits and for other purposes required or permitted by law.

peace? Would the economy of the
nation, which American industry,
without extensive

from

Real Estate Loans and Securities

management to absorb the shock

Many disturbing

Due

Other Securities

the

employ¬
by management in

changed

and

U.S. Government Obligations.

segments of unorganized in¬

dustry

separate

of December 31, 1957

ASSETS

Cash

Railway Labor Act oi: 1926 and
1934, in its impact on ortr indus¬
trial society.
By a single stroke,
control

of New York for

new

generation to appreciate the revo¬
lutionary. character of the Wagner
Act, despite the precedent of the

unilateral

Company

Office: 22 William Street, New York

Affiliate of The First National City Bank

than-Congress or the state ahead. Would collective bargain¬
legislatures, played the principal ing really bring greater industrial
management competition. The net
effect of judicial intervention was

Furniture
.

rather

to carry on from there.

control.

1930's, the courts,

•

18,600,000

7,000,000

constituents, towards those whom
it sought to organize, or towards
employers.
At least in theory,
Congress simply brought the un¬
willing employer to the bargain¬
ing table and left the parties free

the Korean
crisis, and some recent

role

EQUIPMENT

bargain¬
ing agreements, except to prohibit
the negotiation of a "union shop"
agreement
in any form
except

ment

the*

6,292,900

the contents of collective

vast

Tile Wagner Act of 1935

attempt
It

agreement.

bargaining,

Wagner Act of 1935, World
War II, the
Taft-Hartley Act. and

impending developments.

not

12^641,006

Foreign Central Banks.

commerce

did

Bills

Banking-fy-np-

Bank Premises,

caused

to control the procedure of collec¬

of the

-Prior to

that

(1)

issues

and

122,334,561

corporation

free to strike and management to '<•
resist if negotiations became stale¬

questions against the background

such

$6,692,688,345
Acceptances

Dividend

that collective bargaining

bility.
Congress

implies

such

It reasoned

over

of December 31,1957

Deposits-

.v t

•

Taxes

own

and to choose their

disputes

•••••••

•

Unearned Income

Total

one.

strike

collectively.

•

1,899,087,995

Customers' Acceptance Liability

strikes which burdened

•

vUOv

assets

immediately, however, la¬

commenced

of Condition

Statement

of
;

■.

labor, at least, - was!
this indication of a

with

Offices, and Affiliates

promote industrial peace and sta¬

negotiate agree¬
wages, hours and work¬

enforcement.

page

Overseas Branches,

Greater New York

under

vV78 Branches in

OTHER Assets

ing conditions according to their

arising

.Continued

production,

Office: 55 Wall Street, New York

•••••

MEMBER FEDERAL DEPOSIT

participation by

Chairman of the Board

organized labor in the determina¬

RICHARD S. PERKINS

INSURANC E CORPORATION

President

EBEN W.PYNE

tion of wage

levels, had nurtured
so
successfully, really be better
off? "".Would the dignity of the in¬
dividual
worker
really be en-

by;,;e{naf^ipfltiofl. from

We shall be glad to Send, upon request, a complete copy of the 1957 "Report to the Shareholders"
of The First National Cut Bank or New York and Cut Bank Farmers Trust Company.

„

bar¬

a .vengeance.

would tend to produce agreements
for
fixed
periods which would

right of management to resist. It
implies the right of unions and
management

problem

war

with

process

govern¬

collective

bargaining had been
firmly established 10 years previ¬
ously, the impact of government
intervention might have been less
severe.
Coming when it. did, its
impact can hardly be exaggerated.

problem
of

the

If collective

authority to
Later,

the

•

aging

gaining

orders."

•

bargaining table,

entered

felt,

acts

unions to organize and to bargain

and protection of the

peace,

Head

preven-

sion.

trial

with

"directive

when inflation became

•

individual worker against oppres¬

interest lies
preservation
of
indus¬

the

ment

Gov¬

regulate inter¬
state commerce, Congress under¬
took, through compulsion on em¬
ployers, to insure the right of:

issue

the

conference of

tri-partite War,

for the first time

cases,

brought face to face with unions

of New

means

was

governmental "hands off"

the
public

'dominant

■ri
•M

was a

intervention, it

and

happy

litigation

Organized

t irig

many

NATIONAL CITY BANK

not only limited
injunction in labor
disputes, but also indicated a gen¬
eral belief that neither legislation

fraud and violence:

managcmeiit

„

The President

FIRST

con¬

Thus,
at. the
moment : when
newly organized industries were,

suggests

of the

use

tion

lthc field

and

Congress

1932,

should

de¬

choice of

Labor

In the Norris-LaGuardia Act of

ernment

values.'
o

notably by the unrestrained
of injunctions.

use

often be based

c o m

size";

for adjusting such disputes.

that

bar¬

most

nor

com¬

neces¬

cisions of goveYhment must

loom
on
the
horizon.
economic war at the

for

right.

the

sing

end/. The
■>*

of management when

part

minimum

•m

wifhnau¬

wages,

cause

protect

sary

vested

was

stabilize

collective

democracy is to resolve conflicts
among individual and group in¬

the

issue.

be submitted to

bargaining; wonders whether all
inflation and are too powerful
whether Congress can come up with the answers

unions

role

pulsion

•I t

be¬

through? the remainder of the 30's

terest,

War

collective

leaders of labor and management,
who agreed that all labor disputes
affecting war production would

strikes

the public "In-,

..r?

Girded

World

proceeded to call

The

Act

gan 1 to

vinced it is

A*,

constitutionality of the Wag¬

ner

shop

tion of the attitude of the parties

greater

the

when

leveller

closed

But we cannot eat our cake and have it too." The
G. M. C. and U. A. W. impartial
umpire wants responsibility
for controlling labor demands to remain that of labor and man¬

and, if

free

bargaining table—a fair descrip¬

after

held to be

are

abhorrent in

are

scholars agree unions

ahead,

economy

which

.v.

agement,

lies

Board

thority; to

National Defense. Mediation Board,,
in
fell apart with- the impact of the

v;*.

economy.

intervention

the

gaining; The first mechanism, the

World War II

)

were

a common enemy.

the

bar¬

The dust had hardly settled cn
the scene of the legal battles over

and Congress prohibits them then
compulsory arbitration
and wage and price

means

controls

main¬

'j j

Stabilization Board1

that if strikes

really

government

management

Sortie mech-^ counterpart to the stabilization of
anism had to be found to sub¬
prices by the Office of Price Ad¬
stitute temporarily for the strike
ministration
(OPA).

"hands off" policy after the

gaining table?

Impartial Umpire for General Motors Corp. and U. A. W.
';

Fearing:

and

called upon to cooperate in
fight¬

being mistreated ing

parties had sat down at the

Professor of Law, University of Wisconsin

subject

Would

By NATIIAN P. FEINSINGER*

self

labor

—•

by two masters rather than one?

In Collective
i,

(105)

The Commercial

(106)

their

Trends of British Stock Market

thn

r
be inflation

thpre wnnM

There is also uneasiness among
investors about the prospects of
wbetj?er
the decline
marketsininraw
equities
owing
to
or
defla- die
material
prices.
*

lion in

lower price of

economist analyzes forces serving to

British

•

and provide firm tone to Government loans,

equities

and
appreciatively lower and latter higher

predicts former will be

1,1

timid disinflationary

Government's

and falling cost of

drastic Bank rate rise,

widespread feeling of possible dip in next two years, but
no
severe recession, and that this time
a moderate U. S. A.
recession is liable to affect markedly British business conditions

tenden¬

two opposite

weeks

cent

concurrently. On the

cies running

hand,

one

the

time

same

equities were
inclined to anticipated, there is
continue

drift

b
to

down-

ward, even

the movement

moderate

was

hesitant.

and

the

other

hand, Government

loans

have

been

feeling that during the next year
0r two
it will not be so easy to

large and growing profits as
during recent
though the Government
ures merely aim at preventing a
was

seems

rea¬

sonable to
Paul Einzig

ex¬

pect that these

cut down their output and/or their

prices is borne in mind.
...

Government's

fiationary
effect:
UJLUJCL.
effect.

conflicting

the

disin-

timid

would not in
produced such

measures

themselves

L^v.v

trend

rose

record figure,

a new

tendencies
time

and

come

may

de-

even

have

But

jjui

velop into major trends. For, while
the

"prospects of equities

far

are

frora:

encouraging, those of Government securities justify a fair
degree of optimism.
Beyond doubt, the firm tone of

the Gilt-endged market is largely

explained by the pessimistic outlook about equities.
For years
there was, until September, 1957,

growing trend towards switchiiig investments fiom Government

since

OIIJ.CC

into

GQUll'lGS*

in part to the

llllS

CIU.G

growing realization

rate

the
Lite

the

nlnovlv inrJifQiod

the^0S!0?
& Srvard2Colle^eS

increase

ILICJ ecioe

ut.

Government

resist

wage

tie

demands

the

would

effectively halt the rising,
trend of prices, especially as the
cost of raw material has been
falling, and there is growing pressure by the Government on manufacturers to lower their prices.
xt is true, there was an orgy of

spending
_.

management

v v
^
.•-j.
.7./.,
pcat itself in our life-time. The,
nAi|o'A £ Ra |a
purchasing power,.•reason why Britain got away with Uldlll)
UUiIU

there would not be sufl'i-,

creases

cient

consumer

available to maintain the demand

h^cantaiifed

Harvard football team in

the Harvard. tootDau teain in 1933
1933.

higher prices.

A factor of some

it dast time was that the

recession

•

importance is'against, a

Americand^Gj— |i"v. D i
1954 |||||D|| tR ||a Ki vvlllICi3l|

operating, in

was

background of an ex-

from many

ants

millions of ten-

material producing countries have.
decided to curtail their imports,

few hundreds of thou-

sands of landlords. This will

mean

■

„

Jan

Edward

that, while tenants will continue
to Pay this same amount in taxa-;

feel (lnt the
switch 'back into the

amount transferred rto
landlords will be subject to; in-

market

« tax and surtax
.

Sr.St

which will

to
Gilt-ed<:ed

larel

tion of the
—

—

v a

wlPe out more than halt of the
amount.
A
high proportion ot

™hat r?™auJ! Zul
the

PhpP^avPd

securities.

reflec

interest

bearing securities
as

relentless

rise

was

result

just

Government

that

believes

Sutro Bros.

loans

believes that Government Joan*

before

spent

will

which

spent

on.luxuries

not

affect

the

cost

the reason,
,

is good.

i•

Feb.

Beere

reiatively stronger

Co.,

de¬

does.

On balance there will be

will

admit

sections

CHICAGO,

the Stock Exchange, Wright

to the

de-

consumer

operation

Government

appreciably

.•

».

higher;

loans

Will

equities

—

be
ap-

born

Street.

with

Francis

Reynolds

I.-

preciably lower.

offer of these Securities for sale. The offers

are

He
j

Co.

the

tions

and

made only by the appropriate Prospectuses.

practically as
equities.
Indeed,

$20,000,000

of their fluctua¬

range

wide

that

equities,

their long-range trend
pointed distinctly downward, so
that their holding appeared to en¬
tail speculative risk without

pensating advantages.

First

In the cir¬

be looked

came to

$10,000,000

Mortgage Bonds,

4V2% Sinking Fund

4V8% Series due 1988

com¬

Dated

cumstances first-rate industrial

equities

Company

being

not

was

Due

upon as

Debentures due 1983

January 1, 1958

Dated

January 1, 1988

Due

much safer investments than Gov¬
ernment

loans.

investors

of a

type switched
there
oral

was

and

real danger of

flight

Price 100.43%

(o equities, and

over

from

the

January 1, 1958

January 1, 1983

highly conservative

Price 100.75%

and accrued interest

genr^

Gilt-edged

market.
There

had

can

not

little

been

for

doubt
the

the

Bank

rate

the

Bank

rate

and

that,

increase

7%, such a
flight would, in fact, have taken
place in the autumn. The increase

disinflationary
Government

the

measures

issues

Copies of the appropriate Prospectuses may he obtained in any State in which this announcement is circulated
from only such of the underwriters,
including the undersigned, as may lawfully offer these securities in such State.

other

affected

two

ways.

Kidder, Peabody & Co.

They gave rise to hopes that, af¬
ter
all, the inflationary spiral
might
that

the

brought to a halt, so
depreciation of the real

purchasing
vested

would be

Gilt

prices

the

and

for

abandon

hope

ever

such

Laurence M. Marks & Co.
The First Boston Corporation

securities
It was the

the

mainly

rise

re¬

Eastman Dillon, Union Securities & Co.

With

market.

hopes

Gilt-edged

this

halted
a

Allen & Company.

Glore, Forgan & Co.

demoralization

that

White, Weld & Co.

in¬

Harriman Ripley & Co.

process

let

securities

prospects
have

proved.

Merrill

Lynch, Pierce, Fenner & Beane

of
im¬

•>

Stone & Webster Securities Corporation

January 9,195S.

' "

Goldman, Sachs & Co.
Lehman Brothers

Salomon Bros. & Ilutzler

alone

cautious revival

the

Lazard Freres & Co.

Incorporated

people felt impelled to

reversed.
of

was

the

Gilt-edged

would

edged

character

which

sponsible
of

money

interrupted.

continuous
in

power

Blyth & Co., Inc.

Dean Witter & Co.

formerly

Pont

equities.

while

associated

was

Bolger & Co.

The Washington Water Power

George

become

ISSUES

years, so that they came to be re¬

With Bache & Co, 140 South Dear-

the chances are that in six months'
times

111.

has

prices,

Moreover, Government stocks
fluctuated rather widely in recent

Milton

partnership.

(Special to The Financial Chronicle)

marked decline in

This is not

Broad-

With Bache & Co.

reduction

same

spending on necessities

people were holding back this factor,

of the

120

the outlook for Gilts

Even though

...

extent

Christmas., mand owing

New York City, members
0f the New York Stock Exchange,

strong there must

But whatever

York

way,

f
anvthim? like the
in W Rank rate will benefit both
^vingto anytmng like me same in ine Bank i ate win oenem nom

and in
part to the assumption that the
expansion of production,
prices
and profits would ensure steadily
rising dividends on industrial

garded as
speculative

Sulro Bros. Partner

For each investor who
,

Exchange.

that fhe real purchasing power of
the interest and principal of fixed

preciating fast

M. J. Beere to Be

sb the strength of Gov
is

6memt>els^

gift

Stock

be several who prefer them be-

the

an of-

recipients who, as members are inheren%
public sector of the economy. Its
of hin.her
example is expected to be fol- ot higIler inc?me groups, save a
iowed to a large degree in tbe^larger proportion of then- meomes.S cause they are
private sector.
A
wage
freeze' And a high proportion of what is than equities.

JOullS

Bank

rliafdrminalinn
clearly indicated its determination

the

r is felt that even a

InUe for some
will continue

the opening of

under

ex-

over

business.

American

commodity

further expansion, the possibility
that some industries may have to

The

circU-

and

announced

few people in Britain
e^ect week_end
aggravation of the downwa
^ce here

was able to maintain,an inflationwidely for granted. There ate in- ary economy in face of a business.;
dications that capital expenditure Precession
in the United:. States,
is already declining.
In the,ab- without anv adverse effect on the
sence
of
substantial wage ' in- balance of
payments,, would -re-

earn

quietly firm.
It

widespread

note

lower in 1958 than in 1957 is taken

disinfla¬

gave

measures

the

record

stock

cipal

changes,

Shearson,

—

members of prin-

rise
to
growing doubts and fears about
business prospects.
Even though
a
severe recession is not widely
tionary

and

Mass.

Hammill & Co.

very

Dip in Next Two Years

Eng. — The London
Exchange witnessed in re¬

•LONDON,
Stock

There was

buy

I95g

Opens Boston Office

especially owing to the

Thursday, January 9,

BOSTON,

4h/

*4-r\

^But of John H Dean> situated at 75
moderate
re-j Federal street, this is the 30th
But this outward evidence of in- cession is liable to have marke:a
branch 0ffice in the 56-year-old
fiationary boom failed to bring : repercussions on British business
inyestment
firm's
coast-to-coast,
about a noteworthy recovery in conditions.
oncuuons.
nP+wnrk
equities.
Few
people believe that the
w
Mr. Dean was associated with
That consumer demand will be ^miracle'', of 1954, .when Britain

Re-

material.

raw

lact few davs.

lation

ports

during the

pr0Spects of a business recession
in the United States.
It is tiue,

several

over

weeks rushed
expenditure

reinforced by

measures,

shopping

and

their

spread

usually

Christmas

Dr. Einzig credits halt in price rise to

months' time.

in six

1958, millions of consum-

who

ers

—

Shearson, Hammill Co,

STe„e which.way

anj

By PAUL EINZIG

Recession

Question of U. S. A.

purchases till the last week,.

Chronicle

and Financial

Co*

Shillinglaw,

Number 5706

187

Volume

The Commercial and Financial Chronicle

(107)

What

United States Gypsum Company
—Dean of the

By DR. IRA U. COBLEIGII

Enterprise Econdmist

.■

this
as

the

are

prospects for

which,

gross

10%

may

be so reliably
Housing starts
increase as much
Easier money

1957.

over

but

few

to i 50 % T •' /

30 %

.th

from

a r

980,-

000—the

low¬
v

But out of this

;

trends

the

Ira

Cobleigh

along its majestic way
dipping. only from
million in 1956,, to around
million for 1957; and with
sales

specific, USG has

soggy

million
and

sales

and

that

business

indi¬

well
a

company

many

magnitude

operations

sum

understood.

USG

50%

about

at the 1956

million with

ties

not

is the

dominat¬

the

annual

gypsum

for this j'ear a complete new gyp¬

stood

current

$40/million

bonds

economists

(about $10 million) and will
be capable of delivering annually
150 million feet of wall board, and

50,000

tons of plaster. The
gypsum will be supplied at

extraction

raw

costs.

able

The

owns.-

in the

cement, and an
products.

as¬

lime

The postwar pattern in the
gvpbusiness has a familiar ring

sum

First, acute shortage, then
supply.

through June

From

1945

there

1956

just

wasn't enough gvnsum to go 'round

and

salesmen

than

selling. In the past 18 months,

did

allotting

however, substantial increases
have

result

come

that

stream

there

longer a shortage but rather a ca¬
pacity to serve 1,350,000 housing
starts annually (against the 1,100,000 starts estimated for
1958). This
doesn't seem to worry the man¬

agement
set

they

the

demand
In

S.
Gynsum very
have their sights

probable

companies

today

increasingly,

about

squeeze,

the

increase

few years hence.

connection with most indus¬

trial

and

plant

retained

from

common

you

the

hear,
profit

high percentage

operation

came

months

sales;

1957

against

eaual

15.3%

York

Chairman, Nichols

Engineering

& Research Corporation

Fridge, Company
R. WILLIAMS

President,

;

Ichabod T. Williams & Sons, Inc.

JOHN K. ROOSEVELT
Roosevelt & Son
HENRY

[P/a/eaten/
At the close

of business December 31, 1957

USG

earn-

for

U. S. Government Obligations

928,662,275.67

480,438,147.74

.james bruce

Other Bonds and Investments

the

...

14,019,302.21
1,468,755,110.90

BENJAMIN E. FEW

Banking Premises and Equipment

20,690,399.27

Receivable

JAMES B. BLACK
Chairman of the Board,

Pacific Gas and Electric Company
GILBERT H. PERKINS
Vice Chairman

10,092,968.16

ISAAC

Other Assets

♦

$3,310,208,022.59

President

production

sustained

items

least

can

entire

building supply indus-*
i n earnings from •

Growth

here therefore should be expected
from

increase

E. BLACK

KENNETH

President,
j.

The

Home Insurance Company

ALEX. H. SANDS, JR.
Vice Chairman,

LIABILITIES

The Duke Endowment

ARTHUR

B. GOETZE

Capital Stock ($10. par) $ 63,765,900.00

President,
Western Electric Company, Inc.

Surplus

186,234,100.00

Undivided Profits

37,674,789.80 $

Reserves for Taxes,

287,674,789.80

9,918,567.43

Expenses, etc.

3,666,591.06

eMetvfocitj 9p€)mmfY/ee
ROBERT

GOELET

FREDERIC

Real Estate

STEVENS ALLEN
Trustee

Acceptances Outstanding (Net)

69,702,913.91

WILLIAM

Other Liabilities

.....

5,969,441.44

Deposits

•

2,933,275,718.95

•

G. HOLLOW AY

Honorary Chairman of the Board,
IF. R.Grace & Co.

JOHN R. McWILLIAM
Retired

$3,310,208,022.59

w. ross McCain
Chairman

of the Board,

Aetna Insurance

question about
is one
the most efficient operators in

the

B. GRAINGER

1,425,426.23

the fact that U. S. Gypsum
of

G. GOKLET

total facilities today.

standard

There

' Liggett er Myers Tobacco Co.

ROBERT

67,484,902.61

Customers' Liability on Acceptances
Accrued Interest and Accounts

fol¬

Everyone in the building trades
is a bit worried about price struc¬
tures. U. S. Gypsum seems pretty
\vell positioned along these lines.
There appears no immediate pros¬
pect for price increases in 1958
but, with the exception of rock
wool insulations, the prices of all
should

President,

Real Estate

The

FREDERICK

the

President,

Commercial Solvents Corp.

Loans

neglected to
state that, a year ago, the entire
plant assets stood on the books
at $142 million. It would probably
cost at least twice that to dupli¬
cate

New York

•J. ALBERT WOODS

already mentioned the bal¬

but

Partner,

Cravatli, Swaine &* Moore

318,639,489.80

State, Municipal and Public Securities

Dividend Payable January 1, 1958

sheet,

President,
Dry Goods Corporation

J. McKIM

Associated

suit.

We
ance

Farmer

J. CALLAWAY

'ROBERT

MAURICE T. MOORE

Cash and Due from Banks

rising earnings' trench with
per
share net - advancing "from
$2.31 in 1952 to $5.01 for 1956;
and as earnings have risen, the
lowed

sales, over time.

Co.

Chairman

H. E. HUMPHREYS, JR.
f/ "
ei \
Chairman,

•

range

cash dividend has frequently

II; HELM

HAROLD

ASSETS

long

HARRIS

United Stales Rubber Company

Into being as a re¬

that

membered

UPIIAM

Partner, Harris, ITpliant

0/ rCt)i*f/i/ro* 1

CASON

which at: 67V2 provides a
yield7of 4%. For those who might
complain that this return is a bit
on
the meager side, let it be re¬

try.

first

JACKSON

JOSEPH A. BOWER *
*
: 1 ;
Chaiiman, Detroit International

Broadway, New York

1 split in January
indicated dividend is

carried

15.8%

Board

b. stierer

(

BANK:--;
165

for

The

present levels.

profit squeeze USG
through net income for

HOUSTON

Honorary Chairman of the

THOMAS

necessary in
order just to "break even." ' The
position of U. S. Gyosum on these
two points is remarkable. Instead
of feeling a
the

Stock
»

J. II. IIIT.LMAN, JR.
Judnstrialist, Pittsburgh

authentic blue
chip with its dividend earned 63
times
over.
Selling at
168, it
yields 4.1%. The present total of

$2.75

much,

Midwest

New

It has expanded plant

continue that policy

preferred

phalt roofing, insulations, paints,
industrial plasters, used in fer¬

the

Jan. 2.

Both issues are listed NYSE,

very

1956.

production

the

dunham

busi¬

If all

merely of 8,225,220 .shares of
common and 87,277 shares of non
callable cumulative $7 preferred.

sult of

with

Exchange

.robert a. dry.si)ale
Senior Partner, Drysdale & Co.

CORN EXCHANGE

Govern-

sists

broad

about 20%

sold

over

members

.C. WALTER NICHOLS

years without recourse to the se¬
curity markets/ There is no debt
/and present capitalization con¬

as¬

some

un¬

mar-

CHEMICAL

/ '/'./

completely

of the

it.

If the

S.,

pany produces

century of

solvent, as U. S.
wouldn't need credit

fraternity.

very

plants and owned mineral
deposits is supplemented by a di¬
versification of products. The com¬

profitability.

Chairman, Executive. Committee

U. S. Gypsum is not a very good
client for the investment banking

both

and

half

over

geographical diversification of

tilizers

ST.; LOUIS, Mo.-—Frederic A.
Arnstein, Jr. became a partner in
Stix
&
Co., 509 Olive
Street,,

control,

com¬

has huge deposits, and

sortment

and

broken

cost

<•

low water transport cost, from the
island of Jamaica where the

metal laths

fabulous

N. BAXTER

Texas and the Gulf South. \ings (plus depreciation and deple¬
represents a king-size invest¬ tion allowances) and should be

low

earnings,

addition to getting a >top
..balance sheet-rating, U. S. Gypsum has racked
up quite a record
for sustained profitability., It has
never
shown
an
operating loss
/since 1901 and has paid cash divi¬
dends, without hiatus, since 1919.

plant just outside of Houston,
This is a strategic location

pany

Partner in Stix Co.

expan¬

financed by ploughed back

Q)fter./cte

serve

type solvency, intelligent

calling' sion,

are

vice-president

F.A. Arnstein Jr. Now

•J-RANK

were

Gypsum,
men!

ment

1957,
share

liabili-

.creating

Canadian

and

nesses

Texas.
to

merit

;

generally y

plaster and
wall board. It operates totally 46
plants in the United States and 8
in Canada, and it has in prospect
sum

Many

per

and presuming a $2.75 divi¬ has been elected
dend, the yield is just above 4%. of the firm.
however, should not
be
judged so much on its immediate,
yields as its historic record for
top-flight management, TiffanyUSG,

...

For example,

$123

..the

S.": Gyp¬

ing factor in its line turning out
production of

the
\

earn¬

accountant's

been

year-end, current assets
•

of the qualities
ideal investment equity. ; =

lost

leaders

can

perform so
market — such

The

project its net

..munificent net working capital of

offer

must

Of Wm.E. Pollock Co.

•

share lower .than

' A company

ability

one

George W. Hall V.-P.

between 51% and 69%, the

range

USG

' •"

1956/7

67Ys

fair

chance to pick up in 1958 the $15

do so well $83 million. The main worry U. S.
under the conditions prevailing, .Gypsum has about interest rates
is in regard to the return on all
and whose stock demonstrated an

/;•

With

been

an?,

has

dream.

earlier.

year

months.

plowed
back into a rich corporate treas¬
ury. • Fact is that, practically for
decades, U. S. Gypsum's balance

$250

share for 105*7, only

about 20 cents
a

retained

from

which / have

with
$265 /sheet

gone

cated net per

recent

surely

men!

from

million

$9!4

balance

ings

Gypsum, has
net

then

one

depreciation; arid • depletion,/; arid

compa¬

nies,

about

come

build-

the

been

looking.
capital r expansion in 1956/7; and
will 'spend $20 ''million more- this
year.- The
money
needed will

the bellwether
of

has

forward
It spent $38 million for

aggregation .of'.. ;•

ing

for a significant upturn after the
oped cost controls which have kept
the entire organization funning at ; 1958 mid-year, and that's about
practically maximum efficiency, v
all USG would
need for a re¬

dreary

down

USG

really solid performers in

Management has-been

est in years,

rather

devel¬

management here has

way,

s -•

only

the

can

(Present; operations; are running; again past $5;
/about 70 % .)' In some special

tions cut hous-

down

even,

restric-

credit

Enterprises
while oper¬
30% </.of capacity.

industrial

break

can

ating

J;',.

i r4-v

1957 highs and

major

number of cement shares receded ftthat

kets of the past few months have
"separated the men from the boys"

stock today at 67V2 is being given
for new con-! a sort of market Oscar for sus¬

rising demand for USG products.

Marketwise
of

long term rising

help provide" taining so well its
profitability
repair, renovation, through the
Wm. E. Pollock & Co., Inc., 20
recession, "breather"
enlargement and remodeling or whatever
you care to call the Pine Street, New York City, have
which areas
provide a steadily down spin of recent months. At" announced that George W. Hall

derful

class. Plywoods had hard sledding,

its

in gross and net.

funds for home

The past year was nothing won¬ / for the identical period in 1956.
for. ibuilding stocks as a >U. S. Gypsum is one of the very

sumption
trend

releasing not only more funds

(and at lower cost)

values inherent

in U. S. Gypsum common.

year

struetion,

/••',

;,.*«'

then

increase

this company, can
translated into net?

•

A current summary of the unique investment
:'*// /■-///%

this

Building Stocks

•

Group

E. HASLER

Chairman, 11 ay turn American
Sugar Company, S. A.

Securities carried at $122,013,468.88
.

in the foregoing statement

are

WILLIAM

P. WORTIIINGTON

deposited to secure public funds and for other purposes required by law.

President,
Home Life Insurancc

JOHN

Oil and Gas

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

New

York Clearing

Company

R. SUMAN

House Association

Member Federal Deposit Insurance Corporation

Consultant

(108)

carriers, for

THE MARKET

AND YOU

By WALLACE

have
been holding up well and Chi¬
cago Great Western is some¬
thing of a rarity in that it is
expected to show higher earn¬
ings for 1957;, than for the
year earlier.;
. y
/

STREETE

The stock market

one

Thursday, January 9,

...

1958

coal

ThePocahontas

icits.

Chronicle

Commercial and Financial

The

group,

du TONT COPELAND*

By LAMONT

Vice-President, E. I. du Pont de Nemours &

Company

of the nation's
problems the key to suiVival and, in particular, indicates how
lack of understanding in economic areas, if not corrected, can
"lead to public attitudes toward business and industry severe
enough to put a brake on our economic, scientific, social and
military progress." Specifically, Mr. Copeiand calls upon the
press to undertake extraordinary efforts to inform the public
fully about bigness in business, proposed progressive income
tax on corporations, and capital's role in industrial progress.
Du Pont official sees

in public understanding

bumped clearly no sign oi speculative
-r'/
profit-taking excess.
In addition to
the roads
at times this week, following
with above-average prospects,
the new
Apart from the top grade there are some high-yielding
year rally, but over¬
all buoyancy .was .still the issues and the defense section,
preferreds ; available,; includ¬
a
bit
re¬
order of the day and the con¬ enthusiasm1 was
ing that ;of Chicago; Great
sensus opinion was that there strained by some unfavorable Western
which
has
been
dividend
actions
and
the
ex¬
was still plenty of room for
available
lately at an 8 %
Major
threats
and
problems .a modern image, the greatest Unian extension of the
pectation that the 1957 earn¬ yield. The road plans to offer have Come up, some of them like vac in the world will come up
rally.
v
*
#
*
■
ings reports, due to hit flood holders a bond exchange on flash floods, to harass us in both with the wrong answer every time
i Vt
informafinn
tori
infr»
and
domestic if the information fed into it is
tide in a couple of weeks, will the basis of one
$1,000 bond the international
Concrete indication that
areas. Ouf sit-,
wrong. The analogy to the human
show fully how slow the final for; each
20
shares
which
u at ion has led
brain is precise. Reasoning based
Congress will be asked for
some
observ- on false premises,, on inaccurate
sizable funds to step up the quarter of 1957 was. So opin¬ would be a nominal $50 value
ion on the market's future for for the shares available
ers to wonder
or inadequate information, cannot
lately
missile work drastically set
the intermediate term
if the philos- possibly produce the correct conwas
at a shade over $30. There are
off the aircraft-missile items
ophy on which elusions.
;
still a bit guarded.
also
two
and they- were able to save
preferreds of the
our way of
The implications of this for the
inevitable

into

■

•

r•

the market when it

dull

was

The Technican Position

irregular.
*

important

technical
November high

barrier is the

Shipbuilding

shares were
also prominent on strength,
largely because some of the
funds requested are to be

around 450 for the

trial

Colorado

(

billion

for

third of

missile

develop¬

ment, sites and submarines to

them.

carry
i

Optimistic Angles

Government spending is
rapidly taking over the em¬
phasis of being what will lift
the economy out of its reces¬
sion, the other important sup¬
port > being consumer ; spend¬

ing.}
*

*
•

both

■>

•

For

well

and held 43

brought to its

% of the senior

recent

Colorado

tally,
S

That

making

;

it,

con-

decisions

will to see that the proper course

ments. Much of the recession

in this

cleTs;

discounted in the

yvas

correction and

1957

the

least

is followed, whatever the obsta- 0|
.

vpar

last year

public

it should

any mechanism. "
;
The average American, for

ample, approaches the

care

exof his

full

and

cxact

s be abead—

the

and

operation of the * eeo
principles that underlie our
cultural, educational, scientific, and even religious structures.
This is important beyond
question,
for
you
must
have
knowledge about its workings if
you are going to take proper care

the strength, the courage, and the

far

last

action

price

better-acting

group, at
nriee

ifc
its

ns
as

/»

Une

much

the

social,

wisdom to determine what should
be done; and, finally, that he has

groups for months has been
the drug shares. The laggard

•

the

n0mic

that he has the judgment and the

Well-Actin" Dru^s

economic

our

that

doubt

understands
about

be based;

can

reason

intelligence and the desire to gain
the information upon which im-

portant

hard to

system. Specifically, there is good

the

has

coverage.'

js the operation of

individual citizen

news

the conclusion that among
the most important of these areas

slightly longer-range
viewpoint, • there is another
cloud ahead—the spring sell¬
ing to raise funds for tax pay¬
a

escape

cepts: that the
Copeiand

lease operation.

take

these
L> du Pont

t hern- an

o U

philos-

ophy consists,:

is-j

candidate for

eventual

merger or

ultimate test,

the common,;

and 88% of the common

sues

>li.

press are obvious to me. We l eeognize that our newspapers must
provide accurate and soundly interpreted information in all areas

no w

automobil'e

js better quaiified
else to judge whether

press

with

good share of is sterling urug wnicn aicin t. than anyone
knowledge. He knows what kind
year-end even carve ,out a ;10-point it does or not—it will be no new Gf oil it should have, what kind
tax-loss selling hasn't reap¬
swing while the rest were al- thing in the history of the repub- 0f gasoline, the proper inflation of
peared in the market so far. ternating in popularity. The '■ J*®;
,!th,enrtetl?e Hres' the most efficient enBut it is moot whether the imnressive results the comP
? difference we have gme temperature. He knows Ins
impressive results
me
com
a

funds realized in the

addition, there

average.

life rests is not

Moreover, the Chicago,, j§:
Burlington & Q u i n c y ha s-|
been
aggressively acquiring;

rally potential uphill.
t

level.

indus¬

But the index
was
toying with this level this
week and any decisive pene¬
aimed at
missile-carrying sub¬ tration would go a long way
marines. The iirst request of toward
quieting the bearish
the New Congress for $114 sentiments
and
extend
the
billion included

that

Southern

have been available at

The

retained
are many

very

funds

will

obviate

has

pany

been

turning

the

much less margin for

error.

car

In the past we could, and did,
make mistakes of omission or
commission
without
suffering-

in
the

and

last

better,

run

longer

better,
given

look

need
for
more
selling have had little effect on
individual cases ^ where the
proper care.
when tax time approaches.
market
and
itc hpftpr-thanmarxet
anq ITS
Detter tnan
promise of ^ood operations is
more than temporary embarrassInformation First
s!:
#
«
5 /c yield and growing earnment
Qur great land
pretty certain for 1958 de¬
mass, our
;
Our economic system is a mechspite the trend of the over¬ ( Standing out a bit promi¬ mgs lor the last halt dozen protecting ocean barriers, our anism, too.
If people do mot
all
economy, Chemicals, for nently were some issues that years without exception indi- ; wealth of natural resources, gave know what conditions our induswhich to recover from trial machine must have to do
one* had their troubles for a have been making good sta¬ cate that it has been anything *us room
hut
" /ifalse steps.
We could even afford its job, then it is impossible to
out a cnpcnlativp not
speculative pel.
year or so but seem to have tistical progress and have
public indifference and compla.

made the crucial turn

Some Earnings Estimates

such

Sterling

American Chicle. Be¬

hoc
nas

nnt
not

;

-j;

Drug,

cency.

moreover,

hppn
oeen hnnkward
oacxwara

in
in

estimates

are

of the nature of its pro¬

cause

troducing

bit short of

being spectacular ducts, which rely importantly
but if they work out will con¬ on the
teen-age element,, plus
stitute so 1 id improvement. the fact that this
segment of
Allied Chemical's results for the
population is increasing

this

estimated

year r are

$4.75-against $4:40

or so

at at

greater rate and will

for tinue

for

decade

time

short

so,

and-One

old-

of i its

late

crease

last

year.

the
no

mark, they certainly tions
cause

for

any

•

are

highly - mechanized

and the labor factor is low. It

have

establishment
come

would

excess

sipu that

b^pven
pe even

these

l°f W^fupn^that

emphasize the importance of

that

our

industrial ma-

chine must d0' There iS no»efmore

who

intention•:nation8sffh"t®to
?he '

our knees and

MntribuSon

make

toward

base and to advancing our stand-

securHy of the nation.
«

and'ier

1958

"vnh?iu«S°to tee™ peace

^"ration and aJ
has

dollar

their

that

Worse, it is very

oi> conditions tnai
actively impede the effi-

the job

The decisions that lie ahead will

be covered with
a

can be catascnemies

insist

cient operation of our economy,

tob.

able it

peaks.

Errors
i

seems we

■'?1

that the $1.50 dividend could

urgent selling in issues that has increasing earnings regu¬ around
have been cut down well be¬
larly with the expectation of thorp k
low their recent

Minor

-4.

now

conditions exist:.

The^^^ Wfe the^

yearydu Pont $9 against the company has been show¬
company has been active in
$8.65 ^and Union Carbide ing sales and
earnings in¬ new acquisitions,, too, adding
around $5 against $4.60. If creases. While
promotional to its line steadily. Estimates
these
projections do : come expenses run high, its opera¬
are

products of the to the point where minor errors
variety for various;
involve usJn real difficulty,;

last

near

staples, aspirin, is in
we
have
supply throughout the make no bones of
which led to a price in- of bringing us to

world

con¬

Afford

But

new

"wonder"
diseases

;

Can't

inin-

Earnings

them

expect

shrugged off the market fluc¬
tuations rather successfully,

now.

avoid

the

inexorably overtaken

democracies—all,

re-'cePtion.

not

proposed to enact a

mobiles so they could not go faster than 10 miles an hour, people
would n°t stand for it. The rea-

all earl-

without

—e

law requiring governors on auto-

collapse that
ex-

original

say, in this connection,
f 'simple enpugh: it would
lit-raffect the individual in an area
[The views expressed in this tie significance..
But it is im- where he is interested and whcie
article do not necessarily at any portant that we understand it. If he has strong feelings.
He na
Electric are also in
time coincide with those of the we flunk the tests confronting us,
information and motiyatioi.
position
Rebounding
Rails
"Chronicle."
Then are presented' it will not matter that we meant' But propdse that a - progressive
to boost their, results moder¬
Rails were able to
well.
:
• "income tax be imposed on eoipartici¬ as those of the author only.]
ately as is General Motors—
'
*/
Specifically, ignorance is no ex-^'■porations, which would certainJ>
pate in the rebound along
top names in the market.
* cuse. And this brings me to grips have the effect Qf putting a govwith the other sections but
C h r y s 1 e r is
Wakefield, Carder & Holt; With What I want to say. As I err»or on the motor of our indusgenerally re¬ much of
this was viewed as a
TTTT
A
okla
Wakefield
considered the background I have trial machine, and he might very
garded as due for a decline,
technical recovery since traf¬
Carder
&
Holt
Inc.
his been - 3ust been building here, I recalled well remain indifferent.
estimates putting this
year's fic
This is a very serious mat »
generally has yet to show formed with offices at 320 South an observation by one of the
results at $8: to $9:
against
cTnchinaTi to engale^
Cincinnati
hi *
latest of modern journalists, for, tenuous though the connec engage in
a securisecuri
around $15 for 1957. But the any strong upturn. Neverthe¬
.the late Raymond
clapper.
' 'tion may seem to the average citless, the beating this section ties business. Officers are Harry
Re sajd that while the
stock never did respond
press r^zen> his opinions about the forces
fully had taken
H. Holt, President; David L. must never
last
underestimate
the
in-:
that are molding our civilization
year was at¬
to the 1957 rebound and has
Carder, Vice-President; and John telligence of the American people -are» m the last analysis, controllittle to discount. The issue tracting some bargain hunt¬
C. Wakefield, Jr., Secretary-: it must .never overestimate ;their
}[ng.; It he is in favor of them.
lately has been hovering at ers,, particularly the roads Treasurer
Mr
Holt
nrcvi-'informatlon- Translating, this into fbey survive. If he is opposed m
neasurer.. ivir.
noit
was
pievi-

continuing the trend this year.
Its better than 5 Vz% return is
Westinghouse and General on the high side.
$

si:

suits wont
won't
SUltS

•

«r

•

;

better

better.

thought
to
|hat our

intentions will be of

•

„

—

•

around

seven-times

mates for this year

the

esti¬

which is

that

don't

with the

have

large

contend

passenger

def¬

them, they die. If he is indifferent
*An address by Mr. Copeiand before.'to them, then that too is a form
Associated Press
rress
Manacinv
Pititn..
s

ously Avith Warren G. Morris &
Co. and Miller & Co.

the
he

Association,

;

Managing

New

Orleans,

La.

Editors

;

'07

Continued

page

Number 5706

187

Volume

The Commercial and Financial Chronicle

(109)

favorable

Morale and

Psychology and

trend.

The Stock Market Outlook
By G. M. LOEB

ber

few still popular.

reasonable

The outlook for the stock

during 1958 is that it will be

higher and in
from

now

This

world
and

litical

decisions

tory,

<•]

y;
I*

1958

than in

sparked

for the

Loeb

better in

business psychology. Inflation will

again become

factor.

valued

lower

Morale and Psychology

because it is the decisions of

people that make business better
or

rather

worse

needs.

lately

than

These

their

abso¬

decisions

have

towards

con¬

snowballed

traction

mainly because of the
loss of feeling of national security
and continued growth.The chances
favor

but of

antee

course

the

4.20%
.

shares and 20%

dends

Pont

the

•

of Harold

opened

ners

Jenks,

Mark 3VE.

Kirkland,

ident Nixon.

In my opinion, the
his influence rises the more

Washington's

policies rise.
Confidence is manifested in the

by ascending prices

series

Gruggs

& Keir.

F-1958

nationwide
or

after

group

dealers.

The

100%-

;

■

$86,000,000

and

have

today with

notes

securities

are

priced at

: /

together with current funds of the

consists

will

used

ing

Jan. 15.

Upon completion of the offering

and

the

payment

maturity,

the

$807,000,000
compared

deferred

of the Jan. 15

Banks
notes

with

will

$826,000,000

present.

the

DIRECTORS

favorites

the

and

may

INCORPORATED

Chairman

deflated

very

NEW YORK

H. P. DAVISON
President

Statement of Condition December 31,1957
ARTHUR M. ANDERSON

\
v

MORGAN

.P.J
HENRY C. ALEXANDER

Capital Gains Opportunities

Any real recovery such

STEPHEN D. PECII TEL
Bechtel

as many

ASSETS

Corporation
Cash

as
a
probability, must
necessity be sufficiently broad

to include

basic industries and

our

materials

and

specialty lines which show

better

than

business

average

Thus the stock market

ital

gains

PAUL

confined

not

to the

day.

CARTER L.

opportunities

C. CABOT

BERNARD

State and

185,381,480

32,015,523

municipal bonds and notes

Other bonds and securities

Loans and bills

S. CARTER

Chairman

cap¬

14,470,515

purchased

385,196,102

Accrued interest, accounts receivable, etc

6,710,429

Stock

1,950,000

Morgan & Cie. Incorporated

lie

of the Federal Reseriw Bank

CHARLES S. CUES TON
Investments in

Morgan Grenfell 4' Co.

Limited, Morgan 4" Cie. Incorporated,

JOHN L. COLLYER

popularity.

some

$220,214,610

President

among the shares now in disfavor
rather than the few that still re¬
tain

hand and due from banks

United States Government securities

State Street Investment Corporation

to¬

will

BURGESS

Chairman

and 15 Broad Street

5,660,000

Corporation

The B. P. Goodrich Company

Banking house

Sees Attractive Market

Opportunities in 1958

STUART

Chairman

'•

research

Part¬

Harris, Upham & Co., 120
Broadway, New York City, nation¬
wide investment brokerage firm
ner

with 36 offices
coast

coast

members

and

of the

New

for

CHARLES D. DICKEY

LIABILITIES

Chairman, Executive Committee

President

sensitive seg¬
The inter¬
ruption of the rise has fortunately
kept stock prices from getting too
many

far

out
our

"line

with

the

Stock

York

said

recently

that

"our

es-

1958

the

market

position

good

should

outlook

attractive

for

the-

stock
are

for

the

Dow-

indus¬

trial

average

about

360

to 460. afford¬
Ralph A.' Rotnem

ing

investors

withgood

•buying opportunities."
Mr.

Rotnem,

were

reported

whose

the

remarks

radio

ment
actually began
in
April,
1956, when the Dow-Jones Indus¬

trial
of

Average hit

521.05,

vance

ber,
.the

ending

all-time high

the

sharp

ad-

that had begun in Septem¬
and that
had carried

1953

industrial

100%.
-The market has shown
continuing
average

that

remember

scientific

world of tomorrow.

looking investor

The forward-

may,

Mr. Rotnem,

range

for

and

1957

was

range of
(the actual

520.77

419.79) pointed out that "investors
should be on the alert for buying

opportunities
clines.

during market

Business

news

de¬

will be less

for taxes, etc..

11,967,058

Acceptances outstanding and letters of
credit issued.
.i...

payable,

7 22,636,292

reserve

Capital—350,000 shares

35,000,000

Surplus..

30,000,000

■

President

Undivided

16,997,163

profits.

$876,053,503

j
i
•

JOHN M. MEYER, JR.
Senior Vice-President

United States Government securities carried at $44,630,999 in
the above statement
secure

Continental Oil Company

are

public monies

pledged to qualify for fiduciary powers, to
required by law, and for other purposes.

!
Mem ber Federal Reserve

Member Federal

JUNIUS S. MORGAN

System

Deposit Insurance Corporation

ALFRED P. SLOAN, JR.
Honorary Chairman
General Motors Corporation

THOMSON

Finance Committee

1957
420

'Vice-Chairman

JAMES L.

who last year pre¬

probable
520

L. F. McCOLLUM

A Successful Predictor

R. C. LEFFING WELL

in 1958 and

beyond, anticipate investment op¬
portunities that will permit a full
participation in the continuing dy¬
namic progress of the American
economy."

Company

re¬

between

THOMAS S. LAMONT

is important

"it

that

assuming a role of in¬
creasing importance in building
new
industries for the amazing

dicted

Chairman
New York. Life Insurance

pro¬

gram, "Wall Street Final," said
that "the current downward move¬

added

range

Jones

■

Morgan & Cie. Incorporated

decade."

prices

'35,830,078
$759,452,990

DEVEREUX C. JOSEPHS

timates

692,484,080

Official checks outstanding

Accounts
Director

the

All other...... j

N. D. JAY

realities

anticipate

LONGSTREET HINTON

„

Exchange,

Senior Vice-President

sometime in

economy and

$ 31,138,832

Deposits: U. S. Government

The Gillette Company

ments of the economy.

21,454,844
$876,053,503

The Procter & Gamble Company

signs of weakness, especially since
last July, reflecting the uncertain
outlook

letters

CARL J. GILBERT

Rotnem,

RICHARD R. DEUPREE

vestor's money.
Ralph

3,000,000

Liability of customers

of credit and acceptances

Ralph Rotnem, Research Partner of Harris, Upham & Co.,
successful predictor of the 1957 stock price range, anticipates
a Dow-Jones industrial
spread of about 360 to 460 in 1958,
affording encouraging purchasing power prospects for in¬

TV. CRAGIN

Senior Vice-President

MORGAN 4'

CIE. INCORPORATED

li, Place Venddme, Paris, France

Hartford Fire Insurance Company
'

GEORGE

WHITNEY

HENRY S. WIN GATE
President, The International
Nickel Company of Canada, Limited

MORGAN

GRENFELL

have

outstanding

broad

The price spread between

retire

$105,000,000 of 3.95% notes matur¬

different

many

con¬

Net proceeds from the offering,

Banks,

company

obligations,

non-callable,

redeem¬

are

the

company

offering

basis of forecasted

come.

year

July 15, 1958 ; is being
made through Everett
Smith, Fis¬
cal Agent of the
Banks, - and a

redeemable

subsidiaries

instalment

com¬

and * due

not

busine^- of

the

1957

$1,435,792,000,
$1,235,366,000 a

solidated notes dated Jan. 15r 1958

In addi¬
has several
manufacturing subsidiaries.
The
finance companies collectively are
one
of the three largest enter¬
prises in the United States en¬
gaged in the business of acquiring

formerly part¬

were

are

Jan.r 1, 1963.
date the notes

its

30,

Federal Home Loan Banks 3.30%

pri¬
marily of specialized forms of fi¬

tion,

earn¬

Grubbs. Both

and

with

Public

nancing and insurance.

Union Trust

M. Keir and

notes

The

receiv¬

gross

Sept.

Banks Market Notes

able at prices ranging from 102 to
100% after Jan. 1, 1973.

under the management

Building

:The

that

Pa.—Francis -1.,

Co.. has

will

Initially the
used to reduce

before

Pittsburgh

branch office in

sale

purposes.

may be
short- term loans.

Francis I. Du Pont Co.
V PITTSBURGH,

the

proceeds

peaks of 1956 and 1957.7

Branch in

corporate

Federal Home Loan

the

Total
as

earlier.

be advanced or invested in
subsidiaries, or used for other

visualize

may

than it would have at the

market

com¬

period

Credit

company's working
capital where they may be used
for the purchase of receivables,

divi¬

Proceeds

held

pared

to maturity.

added

than

better

primarily from
expansion of industrial facilities.
An encouraging
element in the
present picture is that the inves¬
tor's money today will buy 20%

well con¬
sequently be reduced during the
coming year.

raw

stock market

such

the

Have

expec¬

issue

period.

amounted

$50,000,000
Company
41/8%. notes due Jan. 1, 1978. The
notes are priced at 99% to yield

that benefit

those

exception to this generality
among the so-called
"blue

such

guar¬

stroke, a great deal of at¬
is focusing on Vice-Pres¬

confidence

secondaries

recent

will

value

along with

earnings

chips."

1956

ables

industries and shares and if there

Confidence begins in Washing¬
ton. Since President Eisenhower's
tention

sale

Commercial

President

not

reversal.

$10

trend.

continuation

power.

market

This forecast rests very heavily
on factors of morale and
psychol¬

lute

Late¬

ings decline to $5 a share and the
tendency is to expect them to stay
lower. Many shares today are thus

same

ogy

basis

earning

turn

level

tendency

that

be¬
a

home.

stock earning

the

tations of

basically
of

inven¬

expressed

given

any

and

expenditures
improved

automobile

new

Given

and I

govern-,

cause

production,

in per¬
affairs by the purchase o£

tify

ment financed

but

liberal

V The stock market tends to jus¬

increased 7

other

future

lic

several

perform

nine-month

$2,909,944,000, compared with $2,479,115,000 in the corresponding

Corporation

head

strength

Boston

Kidder, Peabody & Co. jointly
an
underwriting
group
which, on Jan. 8, offered for pub¬

expect
a
interest rates.

First

Market

and

foods,
tobaccos,
drugs,
soft
drinks, and food chains—can be

busi-V;.,

defense

business

The

—

ly, these psychological forces have
been
rapidly
growing .weaker.
Once turned around, they can just
as
quickly snowball in strength.

poM;

leader¬

proved

the

panies in the

ending Sept. 30, 1957 amounted to

Placed

years.
In
addition, quality common stocks
the consumer-goods industries

advertising, and expansion.'

sonal

af-

ship; ■ V, There

b y

today.

should be im- !.
hess:

optimistically. Confidence is dem¬

Confidence

VH•

look

onstrated

investors

year

grovement.
morale in
fairs

uptrend

compared to
based,
;

oil "a n v

mar¬

^purchased by the financing

Commerical Credit Co.

Accordingly, bonds and preferred

easing

expected
ket

^remem¬

worst.".

its

stocks should exhibit
in

price spread between "blue chips" and "deflated secondaries"
may well be reduced in coming year, and that stock market
capital gains opportunities lie in the latter rather than those

receivable. Total gross receivables

ing opportunities occur when the
news

"it

;|Mr. Loeb bases prediction of higher stock market and uptrend
M a year from now on factors of morale and
psychology. Believes

payment obligations and accounts

$50 Million Notes of

that the best long-term buy¬

further

1958, but the stock
anticipating this

It is important to

"Now that the danger of infla¬
tion has subsided," he concluded,

Partner, E. F. Button & Company
Author: "The Battle for Investment Survival"

market has been

4' CO. LIMITED

t3, Great Winchester Street, London E. C. t, England

It:',-'

»!

The
18

Saunders, Stiver & Go.

4%%
price of 99.50, to yield 4.29%.

Stanley Group offers new issue of

First Boston-Morgan

bonds, due in 1979, at a

to enable the Bank

underwriting
group' comprising 176 investment
firms and banks, managed by The
nationwide

Stanley & Co., on Jan. 6

possible for purchasers to ar¬
their payments to suit their
projected cash positions.
•

Bank bonds to be

Development (World Bank)
4^4% bonds of 1957, due Jan. 15,
1979, at a price of 99.50 and ac¬
crued interest, to yield 4.29% 'to
and

United Stales on

World

■?; • ■ V;.:; .-4'

de^^ depressfou is too negligible

consideration, and predietl FRR index will fall

fo merit

five!

;

points during next

marketed in the
a negotiated ba¬

•„

sis. by

underwriting groups man¬
aged jointly by The First Boston
Corporation and Morgan Stanley
& Co.; the last such sale-consisted
of $75,000,000
of 23-year bonds
placed in mid-October, 1957. Net
proceeds from the current sale

maturity. } !/"'>; y\;"j •;' ■
rr.:
' I;
The new bonds will not be call¬

developing: into

v.; "retreat?

'-'.y;

economist assert* danger of the current C

Prominent industrial

1958

-"/'r.'

•

T. BRODERICK*

Economist, Lehman Brothers

Chief

This is the eighth issue of

By CHARLES
••

range

offered

of- $150,000,006 Interna¬
Bank for Reconstruction

tional*

CLEVELAND, Ohio—Satlnders;
&
Co.,
One
Terminal
Tower, celebrate their 25th anniStiver

to coordinate

portion of its borrowing with its
loan disbursements, and to make

issue

Thuisday, January 9,

DepressionM Boom—

Celebrate 25th Year

and Morgan

Corp,

Boston

First

. .

;

$150,000,000 World Bank Issue Offered

Chvoniclc

Commercial find Fincincicil

(110)

and, similarly, downward' courser

ofc profits will be markedly

v^reversed byFall.Expect*'_troAbI^-':;;:

j/)

sortie than

either;1948-1949

1953-1954.'•

t The economy is ' now
in the to*be arrested around the middle
1968. On and
throbs of a fairly rapid- decline in of the year and to be reversed
will be call¬
production and * a much slower markedly in Fail 1958. : In short,
able at the option of the Bank at
decline in consumption or final we shall probably look brick upon
the current business slide, when it
Jack O. DoeTge
prices ranging from 102 V2% and will be used in the general opera¬
Alvin J. Stiver
sri 1 e s.
The
Application
accrued interest if i redeemed on tions of the Bank.
has .firially run its course, as an
most pressing
will be made to list the bonds on versary this year, Jack O. Doerge,
or before Jan. 14, 1970, down to
evoriv ios.s<;! troublesome one than
question of the:
100% after Jan. 14, 1976: As a the New York Stock Exchange. 1 President announced.
the recessions of either 1948-49
mo m bri t
is;
Mr. Doerge f said the story of whether
sinking fund for the bonds, the
As of November 30,. 1957, the
t h el
or, 1953-54.
;V-:jy*• ;v
Bank will redeem $7,000,000 an¬ Bank's outstanding funded debt the local independent investment..
current
re¬
nually beginning in 1968 arid in4 was $1,270 million-. Slightly more house is woven significantly into treat in gen¬
eluding' 1977, and,: $5,000,000 in than half of this was held by in¬ the business and commercial life. eral'
business';
1978.
Purchases for the sinking vestors outside the United States. of Cleveland^: the nation's-fifth
activity- will fund, which is calculated to retire Giving effect to the present issue largest market and thriving in-;
degenerate iri-';
50% of the issue prior to mature
dustrial center. Saunders, Stiver &
and to delivery of bonds under
to a rout like
:
NEW HAVENv Conn.—The 66Co. is one of the 51 independent
ity, will be at a price of 190% .
those of 1932
year-bld in vestmen t; firm or Chas.
delivery * contracts,' the Cleveland investment firms
As in other recent issues by the delayed
doing or
1938, or in
Wi Scrantpn- & Co, has announced
Bank in the United States, ar-r Bank's funded debt is increased to business in this area, along with
other
words
a
charige iri status of two of its
rangements have been made for $1,471 million. It includes United some 24 other branch offices of
whether
th epartrierj.
Paul W'
Redfield of
the sale of bonds for delayed de¬
national investment houses.. '
;v
States dollar obligations of $1,271
present reces¬
New Haven, Conn.,, and Paul L.
livery to certain institutional in-*
Officel-s of the firm are Alvin J;

able prior to Jan. 15,
after that date they

GJtas.W. ScrantonCo.

Partners

Change Stains

Such sales will be at the

vestors.

and deliv¬

public offering price,

eries T^vill"be made under contracts

the Bank

between

the pur¬

and

chasers providing for deliveries on
one

15,

1961.

from
through Jan. 15,

more quarterly dates

April

1958

commitment fee of

will be paid by the Bank to
purchasers under the delayed de¬
livery contracts.
a

year

The

delayed delivery arrange¬
ment,, as in the past, is expected

million and Swiss franc, Canadian

Netherlands

and

Chairman

Stiver,

John

Doerge,

its establishment to Dec.

From

Saunders, Stiver & Co. has pre¬
an
anniversary
booklet,
simply and directly de¬
into loan commitmeilts in an ag¬
scribes the many services which
gregate principal amount equiva¬ this company offers to the public.
lent to $3,480 million to finance Copies are available at no obliga¬
31,

the Bank* had

1957,

programs or

entered pared

projects in 46

which

coun¬

will

sion

of the- Board;
President;/Wil¬
guilder obligations aggregating the liam H. Stanley, Vice-President;
Thomas A. Sidman, Treasurer.
equivalent of $200 million.

sterling

dollar,

tion. '

de¬

velop into

deep depression.
In

opinion, the chances of

such

gible
The

occurrence

■

too negli-

structurally different from its
predecessors and is fundamentally

less susceptible to

prolonged
Among the

unempioyment.

why

much

J. O'Brien, Associates

are

to
be worth considering,
post-World War II economy

sons

;

tries.

our present

the

mass
rea-

economy

stable than it used to

are

general acceptance of

tax

reduction-. as our first deagainst impending depressions, the magnitude and rigidity
PHILADELPHIA, Pa.—Reynolds of Federal expenditures
(espe& Co., members of thb New York
cially for defense purposes), our
Stock Exchange and other lead¬
greater immunity to fluctuations
ing
stock
and
commodity ex¬ in corporate capital expenditures
changes, announce that Joseph L. and the numerous cushions under
O'Brien, Frank J. Keller, John T. consumer demand. It should be
O'Brien, Jr., Edward J. McGuire
conceded, however, that we will
arid John Heron, all foriner of¬
probably remain as susceptible as
ficers of the investment securities
ever to- occasional
inventory refirm of Joseph L. O'Brien Co.,
cessions like those of 1948-49

Join

AND

TRUST

COMPANY

Reynolds &j Co.

fense

have become associated with their
firm.

of close.of business
December

Joseph
known
ASS ETS

•"

•

ties

CasH

23,474,188.89

State ahd Municipal

Obligations

13,679,939.73

Other Bonds and Securities.....

293,617.59

Mortgage LoansInsured

Guaranteed

......

Loans and Discounts

Banking Houses..
Fixtures....

Furniture and
Accrued

Income

29,191,082.79

Joseph F. Hammond

17.398,025.04
26,865,565.56
1,985,345.49

Covvles Andrus

Norman Brassler

561,971.77

Receivable

Vice Chairman of ifie Board

President

691,139.48

—.

Chairman of the Board

Executive Vice President

149,713.76

Other Assets

Executive Vice President

$135,296/713.63

Amounts shown are net,

Reserve for

Discount Collected, Wot Earned..
Dividends

PATERSON, N. J.

919,419.31

PASSAIC, N. J.

476,188.85

.$2,7«0,0nn.no

LITTLE FALLS, N. J.

HALEDON, N. J.

Capital Funds

10,314,005.72

Total

of!

Joseph
was

has

been

formerly
Joseph L.

;

the investment
business
since
1917,

being previously associated with
Harper & Turner, Frazier & Co.,
Inc., Cassatt & Co., Inc.
a

O'Brien, Jr.,

Vice-President

O'Brien

Co., had

formerly

Joseph

L.
been associated

1941, with the
exception of the period from 1947
to 1953.

WEST PATERSON, N. J.

$135,296,713.63

In addition to the above, assets held in the
Trust Department total $34,038,564.12

Mr. McGuire,
formerly Secre¬
tary and Treasurer of the! O'Brien

been

associated

with

the

O'Brien firm for the past 20 years.

Laird, Bissell Branch
DOVER, Del.—Laird, Bissell &
TRUST

Meeds have opened

COMPANY

fice
MEMBER

HOME

FEDERAL

DEPOSIT

ONE-STOP

INSURANCE

CORPORATION

MINUTE

MAN

BANKING

such

the

now

business

•

relapse'

the

New; London,

limited

both

partners, have
Both,

partners.

however, will continue their

con¬

nection

firm

with

the

Scranton

in-substantially the same capacity
they have occupied in the past,
Mr. Redfield has been With the
firm 48 years, beginning his connection immediately on graduation from Yale University in 1909l
Senior partner for the past four
years, he is well known in investment circles throughout the
State, and for many years served

Treasurer of the New Haven
Chamber of Commerce. He is a
Deacon of the Edgewood Congregational Church;
a
Trustee of
Hiram Lodge No. 1, A. F. & A. M.,
a member.of the Graduates Club,
the QUinnipiack Clixb, the Civitan
Club, and is a past President of
the lotal chapter of the Sons of
the American f. Revolution,
William J. Falsey, who has been
a partner of the Scrrinton firm for
the past
il years, will succeed
Mi'. Redfield as senior partner
and representative as a member
as

of the New York Stock Exchange

and Associate member of
American Stock Exchange.

the
Mr.

than it

latter

was

1953-54.

example, the annual rate of

national

security

expendtures

then dropped
$13,000,000,000 over
the span of a year and
one-half,
whereas they will very

likely hit

bottom
after

early

1958

and

there-

rise

fairly
substantially,
though
excess
capacities

Even
have

reared

their ugly heads in
industrial lines, it is likely

many

that the trend of the general economy

will turn upward by midyear

1958

and that the

will

subsequent rerapid than

the

downturn in the first half of

the

year.

(

To be mote precise, the Federal
Reserve Board index of industrial
r

Mr. Heron, formerly Assistant
P™"0™, wi" t p™!?ab,y fal1
Secretary and Assistant Treasurer, about five points to
132 or there-

had

AND

nous

covery

securities field since 19391

$135,296,713.63

sembles

firm, has been in the investment

RESOURCES

trends.

period of inventory liquidation is now in the
making and in many respects re-

For

ViceO'Brien

with the firm since

Surplus
,.
5,300,000.00
Undivided Profits.. 2,314,005.72
Totiai

Keller,

John

122,923.95

Payable

Other Liabilities..-.
Common Stock

Offices

766,404.64

Expenses, etc

firm

Road, Dre.xel Park, Pa.

securities
11 Convenient

Taxes, Accrued

Interest,

shire

Co.,

LIABILITIES

permanently divert long-term

Another

general

Falfcey has been connected with
the Scranton organization for the
senior partner of Carr, O'Brien, its
case,
past 40 years. He is a director of
defense spending has been on the
the Connecticut State Chamber
predecessor, since 1931
J
downgrade,
and
inventory-sales of Commerce, a former director
Mr. O'Brien is a member of the
ratios in late 1957 were somewhat of the New Haven Chamber-of
Board of Directors of Alan Wood
Steel Company and the Altoona top-heavy and still require some Commerce, and past President of
further trimming. In both
respects, the Connecticut Investment Bank& Logan Valley Electric Railway
however, the outlook is less omi- ers' Association. He is also a diCompany. He lives at 504
of' the

President

Valuation Reserves

not

1953r54.

.Mr.

$122,697,771.16

the

L. O'Brien Co. since. 1954 and

after deducting

Deposits

widely

Hamp¬

C. Wellington Dey

Total

investment! securi¬ business

having been asso¬
industry for the
years.
He " had • been

with

President
C. Kenneth Fuller
t

First Mortgage Loans

the

past

OFFICERS:

O'Brien

and

1953-54, but such recessions are
by nature self-liquidating and do

business,

ciated

$ 21,006,123.53

....

U. S. Government Obligations...

Sampsell

formerly
become

•
1

L.~

Cnailes

225" South

branch of¬
State
Street

abouts

course

level of about
+hic

noion^nn

this

calendar

ward

course

general

142
,

by the end of
r™

„

year.
^

and

The

down-

corporate. profits
manufacturers'

profits in particular is also likely

formerly local manager for Blair ..
& Co. Incorporated.
Club,

1958.

Federal Sav-

First

Foundation, Station WELI, and a
member of the Distribution Cornmittee of the New Haven Foundation.
Mr. Falsey has been a
member of the New Haven Board
of Finance for the last 20 years,

Other

partners

ment firm

the

invest-

Edward A. Burgess,

are

Frank M. Johnson, Leslie B; Swan,
Stephen
G. ■ McKeori,
John M.

Flanagan and Gordon E. Johnson, all of New Haven, and Bertram B. Bailey of Waterhury, all
of whom are general partners, and
Wilbur G. -Hoye, limited partner.

member
..

the

partnership

status

hifts

signify

change in the organization's
and
,

underwriting

national

i„

110

loca*
and

brokerage activities
.

has

firm

d that ttleS

„

or in

its V01
f0

'C7 of <=omprehensive service

^ 1fnfVest0rs New
°f »h^areaHaven,
its offices

Kre KSe portNew York City, Jan. 4,

the

ings & Loan Association of New
Haven, and Treasurer and director
of
the
Connecticut Radio

the

•next six months but return to the

under the management of Walter
W.
Burrows.
Mr.
Burrows was

during the

rector

Panbury,

New London.

Bridge

Waterbury

and

187

Volume

Number 5706

The Commercial and Financial Chronicle

(111)
down., Latterly, with the leaders
trending downwards, the bulk of
the tried aM true dividend paying
equities are now definitely in a

Time-Tested Equities and
1958 Stock Matfcet Piospects

buying

By CHARLES T. GREENE

every

Disclaiming subscription to the theory that market behavior
be accurately and
authoritatively charted, market analyst

can

stock's value can only be demonstrated by experience
(not by market price) as reflected in year and year-out com¬
parable return on investments.' In view of this, and the belief
asserts

;

that the current market readjustment will end next Spring,
Mr. Greene advises prudent investors to
begin a judicious
accumulation of time-tested, equities deemed to be available

YY.

world

theY threshold

another

and

1953

3
*

almost

steady decline
in

the

ihese

setbacks

characterized

stock

"mild."

Certainly

were

Caulkins

:Mr.

Vice-President

was

the

just

y e a r

Mr.

Jackson, who recently

that

of civilization

even

"maketh

considering

them

goes
up
must come
I submit that it is equally

Oppenheimer Branch

our

greatest captains of tested equities.

JERSEY CITY,

N. J.

the

direction -of

Krieger.

of all

case

but

the

prove

)

even¬

Y;'\

"severe".*

those: of 1949 andl 1953.v

t-V'r"':

in¬

From the standpoint of 'time,"ittrepid profes¬ looks as though the current.mar¬
sional, whose ket readjustment will have been
cardiac
Charles

T. Greene

Y*Y'V.Y:

ber,

mem¬

as-the

result > of

perience, has become

ex¬

hard¬

case
.

1799'

terminated about the time the sap

begins to rise and the summer
foliage begins to burgeon. In the

confident that many
of equities will: offer
But -we do not mean to place sound values that are not likely
our emphasis upon the sickness of
to be duplicated for another three
the heart which in the process of to five years.' And this brings us
time
can
be
overcome.
Rather, to a discussion of value.
we emphasize upon the two lead¬
Defines Stock Value
ing words in the Proverb as offer¬
Our word value, and the idea
ing something more substantial in
the way of recovery. For, to quote behind it, is from the Latin by
•'

ened.

CHARTERED

interim, I
categories

THE

another
from*

well

breast.
We

saying—this way of the French—to be strong,
Pope — H ope to be worth. In economics, value
in
the
human stems from the power which an

eternal
^

v.iv-

offer1 this

•-Y Y

consolation

sure

that because hope is a part of our

nature, the worst that
it

happen

can

deferment—not

As la matter

tion.

destruc¬

record, the
speculation, for-the rise in market
Values that started in the mid¬
year 1955 was based upon hope;
but a too enthusiastic hopefulness.
On the threshold of a New Year,;
we have returned or are returning
to a. saner appraisal of the pros¬
pects. ; These we hasten to add
have not changed; only the time
of

their

realization, as expressed
in speculative market values, has
been deferred.
Can We Forecast?
.

one

were

of the, stock

the

summer

come

out

about 450

to chart the

course

market beginning in
of
1942, he would
the

end

for the

Dow

1957

Jones

In¬

whereas the ex¬
travagances of speculation
had*
carried it to a peak of 521.05 at¬
tained
twice
during
1956,
and
a^ain
approximated mid-year
The lower level of the chan¬

nel of price fluctuation since 1942,

attained

320

with

380

level.

level

median

1957

of around

object confers

only
the

Statement

its possessor,

upon

such

forms the basis of

statements
that
in

can

some

chart

that

published

by market technicians

base will have to be formed

that

Pine

Street,

New York

before the market
resume its upward course.
am
not a market technician,
area,

and do not subscribe to the theory

command

the

commodities

of others, y The value of an article

Condition, December 31,1957

and

ASSETS

Cash and Due from Banks•

depends, *

•

$2,001,534,526

...

not upon

its total utility but upon
marginal utility, diminishing

its

U. S. Government
H

the

supply increases. This is
amply and definitively demon-;
strated
in
our : mass
productionas

■'*

era.

■

investment

"the

value

advisor

states that

there"'.irrespective
of the market price, which is pri¬
marily emotional, he is basing his
judgment upon the experience of
managements in producing, year
and year out, a satisfactory and
return

the

•

TVY

1,151,802,281

'
.

•

;

405,825,982

189,386,247

reasonable

Obligations

State, Municipal and Other Securities

Mortgages

Now, value can be demonstrated
only by experience; hence when,

Loans

•

Customers'

•

Acceptance.Liability

Banking Houses I
Other Assets

•

3,737,123,272

212,510,693

54,763,205

•

•••••

56,838,320

$7^809,784,526

invest¬

ment.

When,

the other hand,

spective value is based

pro¬

upon

LIABILITIES

un¬
•

tried, unproven
atives,
to
the
desired

the

result

realm
have

economic correl¬
extent

that

situation

finally culminated in the

mer

of last year."

Only the
courageous

would

...

$6,884,520,209

Foreign Funds Borrowed
Reserve for Taxes ;.

such
sum¬

Other Liabilities-

not the
invest in an

.......

3,831,055

........

50,602,815

...

Acceptances Outstanding

—

that, on his cost price,
would yield less than Government
bonds or other obligations based
upon money rates. Fortunate it is
that such
excesses
always have
proven to be the exceptions; but
unfortunate, it is equally true,
that these exceptions have been
equity

the

54,521,903

•

foolhardy
—

the

probability,

proven

market

Deposits

longer is within

powerful in exciting the
market behavior can be ac¬
curately
and
authoritatively appetitive instincts of homo sa¬
charted. I adhere to the view that piens, so that, literally, the tail has
the
course
of speculative prices been wagging the dog.
is based primarily upon popular
Stocks At Bargain Prices :
attitudes which has many times
A review of the stock market
been proved to be mainly psy¬
chological in character. No doubt as a whole—not merely the soaverages
which, at" best,
but that a change in market psy¬ called
chology has overtaken us. .For only indicate the direction of the
market,
reveals
that
time-tested
instance, not so many months ago,
equities are now definitely on the
economists—supposed to be im¬
bargain counter. Naturally, they
mune to emotional excesses—were
are sucked into the trough of the
referring to the recessions of 1949 speculative leaders, either up or
that

services

OFFICE: 18

irrespective of politicalYcompulsion
or
personal sentiment,
to

dustrial Average,

1957.

HEAD

known

Alexander

spr'.ngs

■?

BANK

Less: In

Portfolio

Capita' Fi nds:
Capital Stock

•

Surplus

•

$231,049,318
12,916,864

218,132,454

•

$163,625,000

(13,090,000 Shares—$12.50 Par)
.

Undivided Profits

•

......

'350,000,000'

84,551,090

598,176,090

$7,809,784,526
-

Of the above

assets

$392 842 912

are pledged to secure
public deposits
and certain other deposits are preferred
shown at book values less any reserves.

and for other purposes, ami trust
as

;•
„

provided by law. Assets

are

Member Federal Deposit Insurance Corporation

OFFICES

GREATER

NEW

YORK

—

Oppen¬
branch

office at 26 Journal Square under

d. "severe," and they are expecting
the the present lull or Ipause in our-

sick,'" economy us likely to
especially in, tually to be -as "bad"
the

"bad",;

—

heimer & Co. has opened

heart

re¬

what

down.

Now, how do they characterize

Bankers

signed

them?; fb-'X' '■ k:
YV: Y • yyy
half iv- They have recently been quoted

last

two

formerly

the

market during'

of. the

Trust Company.

pauses

Exchange,

admission

limited partners: Dan P. Caulkins
and William H. Jackson.

"mild." .: They

the

announces

economics but

the

of the New York Stock

.this

true that what is
Y But hope being, in
slapped down
pay belief, a
had. natural endowment, of mankind,. I undeservedly must eventually re¬
to be
year, .we fare reminded of a line been expecting something more in refuse
frightened' by the. bound, and it now behooves the
from the Book of Proverbs—Hope the way of
publication
of
the
a'readjustment than threatened
prudent investor to begin a ju¬
Gaither
deferred maketh the heart sick.
report
.* popularly
con¬
actually had taken place;- In their,
dicious accumulation of timeV/C e r tainly estimation,
as
then, expressed, ceived of as based upon defeatism.

Y On

Caulkins, Jackson
Glore, Forgan & Co., 40 Wall
Street, New York City, members

...

as
a
special assistant to
undoubtedly has giveif capable. The writer has had plenty President
Eisenhower, was for¬
rise to the necessity of a new ap-: of experience with the ups and
merly the managing partner of
praisal of the outlook not only of. downs of markets. It is often said J. H,
Whitney & Co,
"
' ;

and

Y>:

often

itself.

at bargain prices.

affairs, rectors of the world's greatest
crises develop that cause mankind international petroleum
enterprise
to pause and to make a new
—The Royal Dutch Shell
Groupap7
praisal, if he can, of the world- are planning a huge new capital
outlook, both politically and eco¬ raising program for early in 1958.J
nomically. -At the present time,
So, at the beginning of the year
,world * politics suggests the pos¬ 1958, we renew our pledge to give
the
best guidance of which we are
sibility of a third world conflict,;'

Amos Treat & Co., New York City

Glore, Forgan Admits

American Telephone &
Telegraph
Co. and the Standard Oil Co. of

Up to this point, I have stressed New Jersey—have recently raised
the
economic* factors
governing additional millions for expansion,
what determines fair value;
but and, following their lead, the di¬

Manager, Research Department,

zone.

industry are not frightened into
inactivity. The directors of our
greatest enterprises — The h

two

OVERSEAS

Charles

«!'

)

(112)

' '

Chronicle

Commercial and Financial

The
20

Thursday, January

9, 1953

' '

downtown every, morn¬

come

Saturdays and
myself what I
challenge of
the sputniks, as I am being be¬
sought to do on every hand, and
by; every bleeding heart. But ,'the
opportunities
of
meeting., this
challepge. that are being presented
ing,

From

except on
Sundays, asking

Washington

Ahead of the News
bARGERON

By CARLISLE
<4V

i ''

;

«*

•

"''i

•V *

;

r-:^V

'■>t/>

■■

•*, *

sputnik No. 2 do not intimidate'
them. ,
• :
' ■ ^
? U
Relating that
the spending
Cooperstown, N. Y., the parks groups are blaming our alleged

ton, the flails

Capitol;
indeed, "ToUswax

musemtn

London, there
ought to, be
some recogni,f or a

o n

gallant
as

this

country. I re¬
fer

those

intrepid
who

set

with

souls
out,

Carlisle Bargeron

the Administration and the

"liberals"

<.'■

some

the amount of aid

over

to be given and over segregation.

government
to : reduce
spending rat the last session of
Congress. They were led by the

back has been broken and it plans

United

to recommend billions for scholar-

success,

Chamber

States

merce and

W. H. Miller to Serve

Legal Aid Campaign

But

Com-

the

now

Administration's

the State Chambers of

ford.

He is

the Board.

*•;

■<

CHASE

Legal Aid Society, founded
in 1876, provides necessary legal
services to more than 70,000 needy
clients annually. The Society will
seek $537,000 to support its eight
offices throughout the city during

college|.,,.Xhere hp.ftad

both

the

Chamber and the organized State
Chambers have announced that a

and

his

schooling

early

feisbee. His ambition was to be¬
hothing new about this. lDu^o
has been making these grants for come a mining engineer, so he
years* arid it is only one of the attended the Michigan College of
many
private sources that has Mines. After graduatiori he re¬
been doing so.
turned
to
B i s b e e
where
he

Russian

obtained

his

first

engineer

for
Mining Co.

and

At the Close of Business

December 31, 1957

-Cash and Due from Banks

$ 9,214,416.61

United States Government Securities....

17,378,972.94

Municipal Securities

16,831,469.06

Other Securities

3,977,960.50

Stocks

721,626.20

Bonds and

Mortgages

2,843,692.97

Loans and Discounts

Building

Other Assets

21,432,281.33

606,435.73

...

552,088,49

$73,558,943.83,

CaPital

$ 2,420,000.00

Surplus

6,000,000:00 *

Undivided Profits

1,000,000.00

General Reserve

••

••••

Deposits

712,466^88

•••«•!

Unearned Discount and Other
Deferred Credits

Reserves for Taxes and

174^177.59

Expenses

121,754.73
•63,130,244.63

.....

$73,558,943.83

KINGS COUNTY
TRUST COMPANY
Established 1889

FULTON STREET of the
.

corner

Denn

Arizona

Within

bonds.

five

years of
field he was
made a partner of his firm when
it merged and became known as

his

entry

into

the

For the past five years he

FIRST

..:.

resources-

Deposits
Cash

and

Govt,

and'due
banks

from

curity

Govt,

curity

3,348:233,137 3,097,064,393

Loans

2,966,201,511 2,770,655,344

Undiv.

profits—

1,156,472,300 1,121,826,347
3,867,671,355 3,884,506,823
82,299,440
78,531,851

BANK

:!:

661,210,133

701,080,360

Total

63,794,424

60,685,826

W. Emerson

from

due

banks

Loans

City Savings Bank, N. Y. He will

Undivided

49,774,371

30,990.672
76,713.559

discounts

29,146,632
2,342,908

profits—

13,464,953

13,498,514

Govt,

rity

secu-

holdings
&

succeed Charles Diehl who retired

been

CO..

Sept. 30,'57
165,887,304 143,394,407
124,176,818 102,654,992

resources

Gentzler, formerly
executive Vice-Presient, has been
elected President of the Empire

Gentzler has

TRUST

YORK
Dec. 31,'57

1,255,767,526 1,216,308,582

Mr.

»■:

FARMERS

NEW

Cash

31.

discts.

profits—

Deposits

Dec.

1,899,087,995 1,717,710 197

„

se¬

holdgs.

&• discts.

holdgs.

CITY

se¬

Loans

BANK

Sept. 30,'57

812,118,258

979,533,805

—

V''K

•

CITY

—

due

banks

from

7,636,750,881 7,497,017 001
6,692,688,345 6,443,987,827

resources,

Deposits

'-'(''i

•

Dec. 31,'57

•••

Total

V1 fj:

•

NATIONAL

Sept. 30, '57

'57

150

OF NEW YORK

Cash

Dec. 31,

, ,

;

❖

BANKERS

Trustee since 1938.
s

;;i:,

TRUST

2,425.685

■._

COMPANY, N. Y. <

Overlook, Stevens & Co.
Since

began

his

odd industries of today.
"Phoenix

and the State have

wonderful future

trdrrol O.pofif Inruiante Corporation

the

first

building

Street. The

Lombard
is

Company

site

same

occupied when it began the
operation more than 60

clientele."

ago.

years

Mr.

looks

Ovens

forward

children. He

has

the Bisbee Elks since 1912, also a
member of the Knights of Colum¬
bus and the Arizona Club.

attack in

1940.

includes

The

24-inch

building

new

thick

proof slab at ground level
added protection.
One of the

from; the
been

made

building

Jones

Mountain

now

—

Charles

bomb

connected

States

Securities

Cor¬

poration, Denver Club Building.

Cash

that

was

not

discts.

profits—

::
Total

502,571,153

453,956,787

344,867,667
806,148,812
27,801,493

337,220.628

Deposits
Cash

Guaranty Executor
Company, Ltd., an

Dec.

■

Govt,

curity
Loans

discts.

MORGAN

228,273,985
973,163,369

27,507,257

28,266.467

OF NEW YORK

Dec. 31, '57

Sept. 30, '57

CO.,

Deposits
Cash

and

from
U.

due

curity

601,308,471

582,591,567

—

Govt,

rity

851,248,831

from

due

220,214,610 193,818,151

secu¬

185,381,480 176,875,665

holdings-

Loans

banks
Govt,

Mr.

THE NEW YORK TRUST CO.,
Dec.

Carroll

International

with

Total

Deposits
Cash

—

from

due

253,372,195 151,655,

banks
Govt,

secu-

holdings

EXCHANGE

THE

MARINE

MIDLAND

Total

Govt,

Sept. 30, '57

Cash

rity
Loans

737,732,247

se¬

dinner

Dec.

the

Bank

608,668.051
544,2o0,332

208,727,475

2013,534,9(4

from

secU-

27,
as

-rtQ

„

100,501,780
98,212,a08
discounts 286,286.429 275,601,33-

holdings
&

10,942,087

10,960.141

profits—

sis

THE

BANK OF NEW

Dec.

YORK

31/57 Sept.

30/57
$

his 50th

anniversary with the Bank.
joined

630,638,341
551,977,518

Savings,
York, honored Segur Gulbrarisen, Assistant Vice-President
a

due

Govt.

Undivided

480,438,148
455,139,746
Loans & discts. 1 ,468,755,111
1,528,584,9*78
Undiv. profit*
37,674,790
38,158,862

holdgs.

:Jt

30.'57
{*5

—

banks

due

928,662,276

31/57 Sept.

resources

Deposits

3,105.106,636
2 ,933,275,719
2,760,101,122

banks

TRUST CO.,

YORK

3 ,310.208,023

Deposits

curity

BANK

YORK

Dec. 31, '57
$
resources-

sii

the

Division

CORN

<5o
rni

156,903,521
412,858,161
11,189,821

151,026,083
Loans' & Discounts 399,216,332
Undivided profits—
11,841,518
rity

NEW

769,939.845
743,273,075 661,835,365

852,884,584

resources

Dec.

and

NEW YORK

31/57 Sept. 30,
§

Broadway.

from

:]!

t'fi

holdgs.

Bank's

Cash

16,112,135

16,997,163

Total

397,598.215)

discounts 385,196,102

Undivided profits—

se¬

525,408,071
582,893,097
Loans & discts. 1,609,992,036
1,592,262,215
Undiv. profits—
92,808,019
94,862,546

165

31/57 Sept. 30.'57
$

876,053,503

759,452,990 739,176,677

Deposits
Cash

INCORPORATED,

YORK
Dec.

resources

banks

2.967,393,052 2,990,619,471
2,438,414,144 2,446,072,510

❖

NEW

Total

487,499,763

262,538,456
912,329,335

profits

1,591,691,024

se¬

Sept. 30, '57

500,560,881

holdgs.

Undiv.

NEW YORK

31, '57

due

banks—

offering fiduciary services.

resources-

26,297,181

— 1,576,068,695

and

affiliated British trust
corporation

Total

844,986,480

1,796,060,422 1,815,610,696

resouirdfes-

from

providing ample office
space for Guaranty's banking op¬
erations, the new building also
Trustee

—

se-

THE HANOVER BANK,

Besides

and

1,791.380,590
1,578,462,572 1,567,226.112

holdgs.

due

banks
Govt,

.curity

has

part of the new
the massive door of

The

and

Sept. 30, '57

1,804,051,252

resources^

from

YORK

NEW

COMPANY,

damaged in the blitz attack.

houses

TRUST

Deposits

Loans

New

with

Total

an 'Undiv.

The Seamen's Bank for

514,033,626
380,817,707
1,448,257,250 1,573,254.587
56,439,887
57,530.880

Dec. 31, '57
$

...

Colo.

IRVING

few holdover items

old structure

the bank's huge vault. It

With Mountain States
DENVER,

holdgs.

Loans & discts.
UndiV. profits—

been

occupying
temporary/, quarters
in
London
since it was dislodged from its
quarters by a bomb during a blitz

life member

;

645,919,065
-

•

Guaranty

CHEMICAL

spending more time
with
his
family consisting of two sons, two
daughters and nineteen grand¬

815,266,719

se-

Overseas

man.

retired per¬
sons,
industry
executives,
and
young marrieds have joined our

due

banks—
Govt,

Vcurity

company

security
Edward A. Carroll, former As¬
business
and
in
industry,"
he
sistant Comptroller, has been
ap¬
remarked. "The shift of popula¬
pointed Assistant Vice-President
tion is Westward, and I expect
of Chemical Corn Exchange
Bank,
it to continue for a long time. My
New York it was
announced on
early clients were ranchers, Jan. 6
by Harold H. Helm, Chair¬
bankers and small businessmen.
In recent years many

2,556,159,290 2,384,073.763

—

and

from
U.

edifice

new

the

Deposits

new

2,910,512,836 2,701.038.222

resources-

Cash

today opened its

Office

London

the

(Special to Tar Financial Chronicle)

Brooklyn

York

New

Trust

financial

Phoenix, Mr. Ovens has
seen the burgeoning city increases
in population sixfold, and watched
local commerce develop from the
farms of 35 years ago to the 200career

Total

Guaranty

June 30, '57

Dec. 31,'57

■1.;..

GUARANTY TRUST CO.

of COURT .SQUARE

In the Heart of the Civic Center,
'.Member

the

job

However, he discovered better
opportunities in the field of stocks

taecmem

State and

'■

THE

MANUFACTURERS TRUST CO., N. Y.

sputnik

2,001,534,526 1,812,800

se-

holdgs. -1,151,802,281 1,092,713 201
Loans & discts. 3,737,123,272
3,786,372'so';
UndiV. profits—
84,551,090
81,424^67

the Metro¬
politan Division of the Domestic
Department. ;
j v';; -o",■
;

BANK, X. Y.

curity

•.

Undaunted,

Govt,

has been in charge of

Total

The

Vice-President in January of this
year.

due

from banks
U.

Assistant
a Vice1948; and a Senior

and

.•
,

7,809,784,526 7,620 914 ^4r
6,884,500,209 6,706:568 45i

resources..

Cash

•;

•

.■»' Dec. 31, '57 ' Sept. 30, '57

Deposits

tary in 1939; was made
Vice-President in 1946;
President

<■.

MANHATTAN

; '•'•>

Total

Northrop joined Manufac¬
turers Trust Company in August
1931; became an Assistant Secre¬

Clubs.

;

-L *

\:.

THE

Bank

tion.

Mr.

Economic

and

•

;

many years he has been in
charge of advertising and promo¬

Chairman

by Horace C. Flanigan,

member of the Union ;

Hartford

League,

ships
and
added facilities
for
Commerce.
training youngsters of scientific
Fired with a crusading zeal such
promise. The thing that may save
-V -.;"
as
has
marked
all
successful Us non-spenders this time is that 1958.
Movements, they withstood the the States have got to put up
James Ovens Retires;
jibes of the "liberals" and the about half of the money. If, how"leftwingers;" they bore unflinch- ever, the States should accept this Arizona
Security Pioneer
ingly
the
epithets
that
they proposition
the
taxpayers
are
PHOENIX, Ariz. — James M.
wanted our children to grow up really in for an awful time. An
uneducated; that they held do!- outright- Federal contribution Ovens, one of Arizona's pioneers
;
Jars above national security. They might be absorbed in the Federal in the security investment field,
hehi their lines against the mili-; budget. If the States take on any and for 23 years manager of the
tary and, strangely enough, or of this burden you can expect Phoenix branch of E. F. Hutton &
maybe Uecause it has been over- every property owner's tax, in Company, members of the New
Stock
Exchange,
retired
worked in the past, no Russian every state, to be increased. My York
submarines were sighted off our state of Maryland has increased Jan. 2 at the age of 68.
coasts just as the military approMr. Ovens entered the broker¬
property taxes for education for
priation bills were under con- the last three years hand running, age business in Phoenix as man¬
i/sideration by Congress.
as
it is. It so happens that the ager of L. J. Overlook & Co. in
;
These people rendered a service States are way behind in their 1922 when the population Within
to their fellow men, I submit, and
payments on the interstate high- the city limits was 29,000 and all
they should be honored because way program.
k
security transactions were chan¬
realization of the
It is truly surprising about our neled through a morse code tele¬
I1?61} iWfl&S schools being in the condition grapher who sent and received
^
be described. I have before me an orders and noted price changes on
miK>red, too, because they are announcement
by the DuPonts of a blackboard.
same fight this
Born in Silver King, Arizona,
grants totalling $1,150,000 for 135
year m the face of all of hell s
universities and

Russian

for

appointment of Eugene

The

Northrop as a member of the Gen¬
eral
Aministrative
Board
of
Manufacturers
Trust
Company,
New York
has been announced

education, the two sputniks are
Mr. Miller, a Princeton graduate
like
manna
from .Heaven.
The
and a Colonel in the Air Force
Eisenhower Administration ha s
during World War II; is a director
been weakly resisting this lobby
of the Society and of the Trans¬
but the only thing that has saved
continental Insurance Co. of Hart¬
us has been the squabble between

oper¬

ever

REVISED
CAPITALIZATIONS

Chairman.

hand

ated : in

^ 4

•

of the

t i

CONSOLIDATIONS
NEW BRANCHES

NEW OFFICERS, ETC.

toopyerwhelming. -'X

are

News About Banks

the

lag in missile development on
government economy, the State
William H. Miller, senior ViceChambers say the "special interest
President of The Hanover Bank,
spending lobbies and advocates of
will
serve
as
Chairrhan of the
big Federal spending generally"
Commercial Banks; Division in the
see a golden opportunity.
Legal Aid Society's 1958 campaign
There is no doubt that they do.
for funds, of which John D. J.
For the National Education Asso¬
Moore, Vice-President of W. R.
ciation and others who for years
Grace
&
Company,
is general
have been advocating Federal aid

Washing¬

sard's

meet

would sort of like to help out, too.

tip .plaques and statues for men
of accomplishment and valor, such
of

^places where they put

Iri. thosS

can

clerk

He
and

Total

Deposits

pash &
banks
U.

rity

due

from

—

Govt,

—

Undivided

,fi1

194,156,062

118,771.481

89,091,904

93,477,947

secu¬

holdings

Loans

491,570,634
428,11 /.06-.

587,842,052
517,762,329

resources.

discounts

profits

—

187

Volume

Number 5706

The Commercial and Financial Chronicle

(113)
BROWN

BROTHERS

IIARRIMAN

NEW YORK

CO.,

$852,500

Total

—i——-

Cash

due1 from

■«&

banks/—,

52,638,941

—-

Govt.,

June 30/57
*

shares,

discounts

Capital and surplus
to

:|i

''to'-:

?'i

Total

i',

resources—

Cash

Total

Sept. 30/57

—

Cash

Loans

due

47,358,753

discounts

77,166.588

profits—

1,355,347

1,628,595

TRUST

NATIONAL

CO.,

NEW

BANK

Govt,

I rity
-7

<fc

Loans

.*•

' V

.'' V:'

128,404,070
20,584,224

Mount

74,516,283
1,640,302

1,604.879

."ito '*

Deposits

S. .Govt,

rity

' 51,773,122

discounts

Surplus

and "tnidi-

vided

profits/j—

j SCHRODER
r

5,300,000

TRUST CO., NEW YORK

- ■

Total

Dec. 31/57

—L——

Cash

due

June 30.'57;

66,655,058

14,789,822/

15,476,425

//,

;/';

7
7

: 1

Dec.
'<;

t'•

Total
Cash

rity

.x—

Loans

profits—

state

company

bank

933,781;

Cash

Govt,

rity

secu-,

17,899,107.
29,469,426
58,453,514

undi-

and

vided

profits

1,799,819
*

Dec. 31/57

1,899,728

37,289,872

14,534,023

13,439,041

12,708,620

vided

profits—

1,409,428

1,378,799

s!)

James M. Nicely, and George C.
both Vice-Presidents have

9
5

Scott

been elected senior supervisors of
the First National City Bank of

New

York's

;

branches. Mr. Nicely has been cosupervisor
of
the
metropolitan

district,

ISLAND

part
of.
domestic division.

the

"Sis

Tolr.l

-l.

Cash and due,
1

City

Bank),

died

sis
'

Walter

308,199,983

271,165,111 263,776,816

80.579,292

ht,

162,877,667
2,970,606
2,939,799

Undivided profits—
Si!

Edward

•

Director

Si!" /

Si!

;'•

Bleser

;

banks.

Vice-

succeed

the late Rodney

NATIONAL

Assistant

Vice-President
of
the
Fnion Square
Savings Bank, N. Y.,
has been elected Treasurer.

years

the

common

Queens
r

York,
York

sale

new

capital
National

The

its

Bank

Jean

elected
& Cie.

April

1918.

BANK

Total

resources

Deposits

—'

Cash

due

TRUST

rity
Loans

CO.,

Dec. 31/57

June 30/57

•YJ X

joining
he

3,089.500

2,229,113

s-:

Deposits
Cash

served

International

COMPANY,

—

Govt,

discounts

June 30/57

the
on

serves

Deposits

—

Cash

due

William

Company
Dec.

companies doing business abroad.

2,314,006

Govt,

rity

2,132,495

was

Chairman

the

J.,

died

Corpo¬

ration

merger

have

approved the

23,996,805

24,267,097

6,341,419

" '•'■TV' *■

secu-

profits—

314,694

476,645

:!:

now

affiliated

Co.,

•

CO.,

NATIONAL

CHICAGO,
'57

ILL.

June 30,'57

curity

2,394,495,171 2,293,343,573

rillP

■

598,854,093

636,140.311

se¬

holdgs.

2,674,362,165 2,560,632,886

banks—
Govt,

discts.

713,887,129
573.628,719
1,163,844,563 1,166,566,922

profits—

32,891,449
si:

National

First

22,938,263

Bank

Minneapolis, Minn, elected Clarke

Bassett,

Vice-President,

THE

senior

NATIONAL

SECOND

ASHLAND,

resources——

Deposits
Cash

and

„

Dec. 31/56

$32,115,873 $34,648,823

29,397,811

32,087,129

7,708,090

8,715,693

due from

banks
S.

BANK,

KY.

Dec. 31,'57

Total

Govt,

secu¬

holdings——

7,991,081

9,969,160

discounts

11,514,306

11.833,616

profits—

307,895

324,051

Undivided

sji

Liggett, Chairman of the

Board of The First National Bank

of the United States Savings

the

Franklin

increased from $600,000

the

Half

Northcutt

of Tampa, Fla., announced on Jan.

the

Mortgages
23,622,278.45
11,021,668.44
17,296,406.26
337,500.00
2,569,603.22
504,667.04
47,770.56
837,151.12
199,312.54

;

Fixture

Income

Receivable

Assets

$241,244,877.29

Deposits
Demand

retirement; of Victor
as

President

and

H.
the

$111,888,387.87

■

Time
U.

Government

Reserve for Unearned

ILLINOIS

TRUST

—

New

Bank,

Exchange.

Dec. 31/56

discounts

New

Savings Bank, and
Dime Savings Bank of

Stock

TOTAL ASSETS

31/57

9,716,246
9,234.092

onrl,

Loans

Federal Deposit Insurance

Other

BEND,

for

Income

Interest, Taxes, etc

Reserve for Loans and

Discounts

Acceptances Executed for a/c Customers
Capital account
Common Capital Stock (170,000 shares
$25 par)

Surplus
Undivided

Profits

TOTAL
,w

6 .^Central
Row, members of the New York

Customers' Liability a/c Acceptances

from

resources-

Pooh

rity

Jersey Commissioner

Putnam

SOUTH

Executive

with

Banking Houses

Accrued

❖

CO.,

9,824,158
9,314.732

Deposits

New

74,697,512

181,964,862

Dec. 31,

Board.
*

70,747.935
184,237,412

Vice-President.

72 years

Blankenburg, Jr, is

Other First Mortgages
Federal Reserve Bank Stock

16.953,912

X HARTFORD, Conn.—William E.

Municipal Bonds

A. Guaranteed

Reserve
BANK

Selby,
Sr., Vicecharge of the trust
of the Federal Trust

in Newark,

19,160,091

holdings..^

The

si:

.(Special to T.ie Financtal Chronicle)'

$26,154,079 $26,308,260

28,836,516

Joins Putnam Staff

H. A.. Insured

——6,184,989

26. He

The

Undiv.

old. Mr.
Selby joined the bank in 1922 and

was

Loans

26,865,566

many

largest "-American
establishment there,
U. S. and Canadian

Loans, Secured
Demand Loans, Unsecured
Time Loans, Secured
Estate

if $
i
'.
$
318,927,173 316,206,929

Dec.

18,412,829

and

Demand

INDIANA

122,493,199

23,827,500

oldest

em¬

Other Bonds and Securities

been

Recon¬

Government Bonds

IN THE CITY OF

'to

TRUST

resources

135,099,182

21,006,124

•

and Due from Banks

Furniture and

discounts
*

23,474.189

for

Govt,, secu¬
&

122,697,771

holdings—

135,296,714

profits—

10,000

—

from

due

——

AMERICAN

secu¬

holdings

Loans

rity
Loans

from

31/57

Bank

and

York. ^Before

New

in¬

287,407,862.283,001,899

—

<te

banks.
U.

.■

from

banks
S.

resources—

Total

:ii

TRUST

AND

Dec.

rity

Total

PATERSON, N. J.

Cash and due

/'is"''

profits—

resources

outstanding
value $20).

CONTINENTAL

56,275,604

BANK

Bank

Virginia

;

/
;

Morgan & Cie. in 1953,
an
attorney with the

10,659,352,

39,361,965

58,216,217

was

477.761,409

National

West

{•;

Incorporated, Paris, France

Incorporated,

utility and payroll. clerk.

/;// '/X' Dec, 31/57 Sept; 30/57

T>' f

secu¬

discounts

has '

Loans and Discounts

Undivided

Villechaise

;1': V

June..28,.''57.

CLEVELAND, OHIO

222,721,098

214,043,679

and

!!!

SOCIETY FOR SAVINGS

Loans

50,845.005

COUNTY

par

241,244,877 232,862,041

holdings—52.416,914

Undivided

common

shares,

banks

44,440,662

Govt,

BANK;

J' 'i«

dividend

from

banks

NATIONAL

subsidiary of J. P. Morgan & Co.

'X:X..'V X

assistant teller
He

was

(Amster¬

Vice-President of Morgan

banking
an

Manager

Bank) in Washington, D/ C/ The
Morgan office in Paris, which is

commenced' his

• '

Handelsbank

in the

Hall

ployment

$60,000

stock

well

ago.

Assistant

struction and Development (World

]

••

Assistant Vice-

years

all

were;

ahead.

Mr.

capital stock,
to -$180,000 by a,
and from $180,000
to $200,000 by the sale of
new'
stock effective Dec. 23. (Number
from

of Banking and Insurance and the

stock, the
of
The

wish him

made

1 v, 1

Central

Gardens,

Springfield
was

stock

Bank

Vice-

international

dam in Ilong Kong.

hand

Vice-

/Y;;/'/•

the

department.;; Mr, ..Van
joined the Bank in 1951

was

Nationale

completing almost 40 years
Charles
W.
Wadell,
President, Mr. Adolph Kunsmiller,
Chairman of the Board, officers
of

in t. the

formerly

Dec.

service.

staff

elected

Vlierdn

; 17.4.273,81.4 L .155,037,7.14;

*v-

Total

PATERSON, N. J.

Mcloughlin, formerly

Jersey

Loans-.&\diSctK/;,N435.920,180
Undiv. profits—*. . 11,759,995...

Chase.

t'fi

effective

after
of

Calif.,

Van

T*; X 338,345,)}59.X 266,"955,60.7.

elected

was

of the

Waterbury Na¬
tional Bank, Waterbury, Conn., to

305,198,877

71,648.694

department

Frank

162,022,256

<fe

Bank and Trust Company of New
York died Dec. 31 at the
age of 59.
:

June 30/57

discounts

Loans

President

)

31/57

secu¬

President of the Sterling' National

;

National

"»-»

■

si:

Blankfort

'"'

50,919,038

Govt,

s|;

CO.,

holdings—

rity

Jndividea

30.

,* hec. 31X'57

S, Govt-.* securitji holdgs.;

■•

TRUST

from<;,.

——

•#.

; Everett C. Southwick, 66, re¬
tired Assistant Vice-President of
the National City Bank, N.
Y.(Now

National

4
43,956,905

banks

Deposits

Dec.

resources:

Bank's

First

HOSPITAL

Dec.

Total

.'x

PROVIDENCE, R. I.

Manhattan

midtown

died

Dec. 27 at the age of 71.

undi¬

and

Amesbury, Mass.,

FIRST

14.353,497

&• discounts *

Surplus

Bank,

secu¬

holdings/

Loans

•

Bucl^hannon,

Benjamin F. Sargent, Jr., Presi¬

8,435,111

9,171,202

—

Govt,

rity

35,922,225

from

due

banks

Scot. 30/57

$40,391,046 $39,014,463

Deposits
Cash

•

:|:

resources

from
U.

THE CLINTON TRUST COMPANY, N. Y.
Total

President^

creased

35,974,088
57,204,788

discounts

$1,400,000

stock

and

Association,

resources.1,047.420.003 1,005,517,622
Deposits ~iXr/.YTs*: 9^3,141';791'.'; 878,895,345
Cash v an,a •' due. ?;: r.
/• '■*■>,
.
- - r\

Bank;

110,841,654

<fe

Surplus
4

21,341,564

new

Savings

Total

into the Vermont Bank and Trust

Sftpt, 30/57
'*" '■'•$" "

holdings—__

Loans

'X'/'

Stockholders have approved the
merger
between - the
Windham

Deposits

—

PHILADELPHIA, PA.

;

Dec. 31/57

99,294,233

New

PHILADELPHIA

*■

Company of Albany.
r#

RHODE

from

due

THE

trust

and
york

and

and Trust

23,303,237

resources—119,472,818
Deposits 108,247,070

►

new

♦

Assistant

Camden,

Bank

/sU

commercial

Company of Albany, Albany,
Y„
with
common, stock
of

$1,200,000
of

opened

Francisco,

and

increased

was

of America

and

Vlierdn

join, served as a teller, a member of
merger of Bank of
Fidelity's Correspondent Banking
the loan and discount department,
Waterford, Waterford, New York,k
Department on Dec. 30.
X" '
'
with a capital; of $135,000, into the
the exchange and collection cage,
" Si:. r..' s;: ... ...»
«•

47.942.423

banks

close of business

the

49,937,280
826,121

approving and making ef¬

fective as;of the

discounts

Ijouisiana

Town

banking;

■

/Evan W. Drake will resign his bookkeeper for a short time be¬
position as Assistant Vice-Presi-> fore entering the U. S. Army.
his
dent, First Camden National Bank; After
discharge
Mr;
Hall

.issued;

was

27,598.037' dent of the Powow River National

•

certificate

Company.

101,898,672

/'-•

Public Relations.

;
30,''57' National
Bank, Bellows Falls, Vt.,

111,456,815;

Total

25,276,749

.secu-

».

,•

30,053,902

holdings—

Undivided

XV; J
co.,' j

capital stock of the

but.

"''

Bank

San

24, (Number of shares outstanding
—140,000 shares, par value $10).

Directors.

;

—

Govt,

June

from

due

b^nks

U.
0

31/57

110,901,266

—

trust

122,305.265

resources—i.

Deposits

2,720,000/

' s^//.■,

bank and
new york

"*"2,750,000

common

Jan.
130

■*■}[ *-to

Trust

Orlando

President; .X

The merger /was ef¬
fected under the charter and .title,

X 'to XX 0

Mount

of The National Commercial
I vided' .profits——

from

Petersen, President,
Fidelity-Philadelphia Trust Com¬

$5,134,500.

secu-.

federation

Merger

:i:

sale

.?.,

-T

The

has

Bank

California, N. A.,
on

office

President

;

The

Howard C.

Trust

2
3

National

17th

Louisiana National Bank of Baton

and

.O'Neill
Chairmari

Country Village in Palo Alto.

National, Commercial

68,256,227

from

0,'.Govt.,

•

$74,419,878 $75,529,594

resources—

Deposits

announced

■">

CiX,

5,600,000

.banks

with

30,899,249- Dec. 20

Trust

merger

Dec/ 20

Vernon

62,113,677;

32,631,883
/

Camden,

■

12,646,412

secu-

holdings

Loans

Mercantile

Francisco,

Constant

-•

Company until its
Frank C. P. McGlinn will join
County Trust.
Mo, the Bank on Jan. 13
as Vice-Presi¬
98,126,316* will be succeeded by Andrew A.
dent in charge of Advertising and

18,021,249

Bank

Mr.

and

its

to '
to
si:
1
was
formerly
a
resigned to accept X- Mr. Hall Assistant Cashier at
an appointment as a judge in the
the
American
National
Bank,
New Jersey Superior Court/*1,
Denver; Colo., retired on Dec, 31,

the

San

O'Neill,

Assistant

January of 1950.'."'
Jjs

Chicago, and worked for the First

Rouge,

Camden

of 70. Mr. Goldmann had: President and
of

Vincent

President

Fla., -X* The. Bank

Miami,

appointed

was

»•

National City Bank of New York.

Goldmann, first Vicecharge of the Mount pany, Philadelphia, Pa. announces
region, retired on Jan.; 1; the appointment of a:new Vice- and

President

Sji

Bank,
J.

Vice-Chairman.
the

Chegwidden

Director

Company,

Rindlaub. 1:

'banks

Trust
N.

Vernon

beeif

T35,735,211

from

due

County

Mr.

1,408,782

•/ '

Vernon,

CORP.,! at the age

;V r,

94,971,695

Cash

1,414,286

■■-AXT

Dania

elected

been

President in

'"'/ ••

BANKING

Harman

that Fred E.

Dec. 31/57 June 30/57*
V ■* *
$ "

•

' *' -«

The

;#• ~

profits—

'/• /

Savings

elected Samuel P. Orlando and S.

...

15.608,311

19,363,542

formerly

New

Company,

secu¬

149,817,510

from
——

the

First

Trust

136,027,293' 134,605,273
/
"/
'.

" 44,034,031

resources-—_:T33,181.654

Total"

due

Govt,

The

51,916,396

36,568,594
81.496,339

The

has

:;t

Licklider,

48,871,306

;

sIs

148,564,361

43,220,330

n-:XEW; YORK

X\".v

banks
U.

resources—147,541.693

58,834.418

42,574,970

offices in Newark

deposits of

Sept. 30/57

•'

discounts

SCHRODER

holdings—

profits—

HENRY

Dec. 31/57

Total

secu-

six

llackensack, N. J. elected Arthur
Phelan a -Vice-President.,

WESTCHESTER

rity

discounts

XY//X'X

si:

WHITE PLAINS, N. Y,
.

v;<

•

>
J
!V ,* •
1
"
.%»•
The Hackensack Trust Company,

035,951

;

Undivided

holdings——

Undivided

NATIONAL BANK
f

from

due

/banks

1,000,000

Loans

Deposits
Cash

20,227,926
21,164,591

143,096.009

■

assets

Bank,
Manhattan,
will"1 become
President of the Bank.

•

Sept. 30/57
$ '• '" ''

resources

with

Treasurer

12,794,846

17,378,973
21,432,281

;*
.

YORK

Dec. 31/57
V «'

Total

70,686,890
(./

164,407,496

!,,

discounts

Cash

secu-

holdings

secu¬

STERLING

with

surrounding communities, will

William

" '

9,2W,417

Deposits
THE

"'"

Undivided proflts_,

June 28/57

63,130,245

from'"

Govt,

rity

49,119,892
85,742,788

Undivided

60,835;0S2

holdings——

Cashier

bank

than $125,- President and chief executive of¬
000.000 and surplus and undivided ficer to succeed-1. T. Parker, who
profits of more than $10,000,000; has been advanced to the post of

$78,558,944 $80,889,344

4";

Loans

53,701,408

—

Govt.,

rity

ard Frankland;

state

and

,■

from

due

banks

207,922,583 204,425,666
186,957,102 183,291,855

resources—__

Deposits

YORK

•„

Dec. 31/57

Deposits

14.605,284

Dec. 31/57
ti

election of his successor, W. How¬

the

COMPANY// * have
N. Y.
i }

BROOKLYN,

•

NEW

Orange, N. J. The merger will give

bank

81,436; 101

the

TRUST

banks

GRACE NATIONAL BANK

(Num¬

39,421,086

71,310,429
14,645,284

outstanding—85,250 about $137,000,000. The combined

COUNTY
,

■-

23,

value $10.).,

par

KINGS

47.362,413

44,723,127

Dec.

sccu-

S_ rityXfroldtags——
Loaua&

ber

232,819,400 225,571,001
196,609,261 193,376,935

resources^—

Deposits

Dec.31/57

effective

of business

LIABILITIES

107,125,782.35
3,706,927.57
1,372,632.12
703,120.74
2,060,756.24
47,770.56

4,250,000.00
7,000,000.00
3,089,499.84

.....$241,244,877.29

F. RAYMOND PETF.RSON
Chairman of the Board
BENJAMIN

P. RIAL

President

•

The Commercial

and Financial

Chronicle

Thursday, January 9, 1958

Number 5706

Volume 187

The Commercial and Financial Chronicle
(115)

begins in the capital sector may
go deeper and last longer than
inventory cycle to which we

U. S. Securities

the

have

Public

accustomed.

been

also

said

there

Utility Securities

still

remain many elements of strength

in the economy.
shake-out

year"; it

also rep¬

may

Central & South West is

siyp pursuit of cost control. The
ydak] ahead shapes upvai a test¬

ing-period.
1

controlling Central. Power

"Security Prices'?:
I believe this is a good time to
on

ibuy; stocks1 in moderation.

Dis¬

turbancesin'; 1958 may
stlock prices
>i;\
fo* a time, but

'/.■;;

the

depress'

and 4% from

duration

,of these de¬
clines

should

;its

next
J

,or

a v e

u n

above

their

grade

bonds

Slade

will ' have

400.

The

stock

lows;
;V'

now

ices

Texas

cline

General

Jules Backman

minimum
to

plus

some

The

1958

mean

cents

hour

1958,
liberalization of fringes.
wage

will

movement

drop in profits of consid¬
erable magnitude, and will" con;! tribute to unemoloyment. We will
not have a significant rise in
pro¬
ductivity in 1958, and unit labor
a

costs

will

increase

i profit margins will

moderately;
I

narrow.

ex-

'pect^ unemployment of 3.5 to
million; in addition,

unemployment

the

sense of

will have

partial

shorter workweeks.

,y,

Loewi Go. Announces
Official Changes
MILWAUKEE, Wis.—J.
Loewi, President of Loewi

Victor
&

Co.

.Incorporated,
Street,

225
East
Mason
members of the New York

Stock

Exchange, has announced
thefollowing management changes

made

by the board of directors,
effective Jan. 2, 1958. Joseoh Car¬

son,

formerly Treasurer, has been
elected a
Vice-President; Marshall
A.
Loewi,
formerly
Assistant

Treasurer, has
urer.

been elected Treas¬

Robert C. Sullivan has been

appointed

Assistant Vice-Pres¬

ident.
■

director

the

officer

firm

since

1931.

Marshall A. Loewi, Assist¬
ant Treasurer since
1954, joined
Loewi & Co. Incorporated in
1950,
Upon

graduation

University.
the

from

1930.V
While

drought effects have been irregular and

(up to 1957) the number in Last

and

COIN BANK

the previous years.

2,600,000 in 1959.
a

are

„

Latest
Dividend
a

year

(3% regular plus Va% extra)

The

construction

budget for 1957 approximated $70 million,
projected expenditures of about $85 million
each in 1958 and 1959—probably a maximum figure.
The $452
million construction program for the decade ending 1956 was taken
care of as follows: 30% from internal
cash, 38% from debt issues
and 25% from retained earnings and sale of common stock. During
and the company has

1957-9, the company has planned to issue more debt and less
equity. The $20 million common stock offering of March 14, 1957
(600,000 shares offered to the public at $36.75) may be the only
equity issue during the three-year period. It is possible that the
company may do equity financing in 1959, but it may well be post¬
poned to 1960.
In the decade ended 1956 the

Compounded QUARTERLY
Money deposited
will

earn

on or

before JANUARY 15

dividends from

JANUARY 1

Money deposited after January 15
will

earn

dividends from

DAY OF DEPOSIT
BANK BY MAIL—Send for free

equity ratio rose from 30V2% to
34%%; it may decline to around 32% in 1959 but would
again be raised by equity financing.

postage-paid envelopes

around

As shown in the accompanying table, during 1947-51 share
earnings showed comparatively little change, being retarded by a
30%..dilution of the stock and in 1951 by heavier taxes resulting
from the Korean War. Since 1951, equity financing has been less
of a factor and dilution has averaged only about 3% a year, which
with* some tax relief permitted an increase of 75% in earnings. In

1957, with a 10% dilution from the sale of common stock, share
earnings have been showing a modest gain to an estimated $2.40.
The common stock has been selling recently around 41, mak¬
ing the yield based on the $1.60 dividend 3.9%. Assuming that the
estimate of $2.40 for 1957 is realized; the price-earnings ratio is
slightly over 17 which is about in line with stocks of other growth

utilities.

Stock

Record

Revenues

(Mill.)

Earned

Dividend

Approx. Range

$137*

$2.40*

$1.60

43-35

128

2.32

1.45

41-33

1955

114

2.04

1.34

37-30

1954

105

2.00

1.20

32-23

1953

1.72

1.04

24-19

Year

1957
1956

•«

—

17-13

1950

1.44

0.90

16-12

1949—•_—_—

1.40

0.825

15-11

1.38

0.75

12-9

1.38

0.35

12-

1.22'

1948

1947
1946
^Estimated.

•

SEAMEN'S BANK

for SAVINGS
CHARTERED 1829

30 Wall Street, New

York 5, N. Y.

Hours, 8:30 A.M. to 3 P.M. Mondays through Fridays
Open Thursdays till 6 P.M.

21-17

exclusively for The Seamen's Bank

to around 2,250,000 kw.

0.90

1954.

expected to increase about 12%

0.95

finance

one

!''y

1.34

corporate

and get

open

for Savings.

capability of 2,000,000 kw in 1957 and

Peak loads

long

or more—as

supply lasts. Come in,

these decorative coin banks, made

A generating reserve of about 15%
is being maintained which means that the
company is keeping at
least a year ahead of demand.
year

the

During 1957-9, inclusive, the company expects to add about
950,000 kw to capacity—325,000 kw in 1957, 250,000 in 1958 and
375,000 in 1959. Including firm purchased power of about 10%,
the system will have a total

opens a new sav¬

your account now,

1.60

Law

; :

over

who

ings account of $5

jet

are

University, attended

to everyone

manufacturing activities.

the

the number

1952

& Co.'s

department

service, in

1951

School and became associated with
4

on it; .Only one out
oKeight
contrasted with almost half in 4920.\The

Marquette

University of Wisconsin

/Loewi

Mr. Sullivan, a grad¬

uate of Yale

has

off the farm than

the farm

Common

Mr. Carson has been
and

of farms

During 1947-56 the system rate of growth in kwh sales ex¬
ceeded 13% compounded, while revenues gained 11% (the differ¬
ence being accounted for
by a decline in average kwh revenue.)
Up to 1950 air conditioning was not;a factor, but in later years it
has become increasingly important and in 1956 the
peak load was
;

21%

wage in 'creases will
;

number of
:

'about 2%.
.

Ownership

electricity, and there

the

price index,
Probably
i

16%..over>1955.

most com¬

year in 1956 with a

increased utility income.; Military establishments
including the
bomber base at Abilene have also used

wholesale

;

The area served has a wide
variety of natural resources in¬
cluding oil, gas, coal, lumber, sulphur, salt and gypsum. The de¬
velopment of numerous oil fields and the gain in revenues from
oil, pipeline and pumping loads has been a substantial factor in

rise.

[moderate
:

con¬

anticipate

••

•

Louisiana :mcreased. ^Moreover, the drought
greatly
irrigation—over six million acres in Texas are now
irrigated, compared with one million in 1940. This has, of course,
brought business to the utilities. ^

serv¬

stimulated

■

the

will

{I-:?

of -manufacturing, ■•••'tradeand* government

The

g o o d s

tinue

sales :of

of cattle declined in West Texas

•

price of

Associates, 114

State Street.

Sanders, Vice-President.

.the-recapitalized system started.- Gross electric

with about 18% in

index will remain fairly : stable
| from now through the end of 1958.
;The prices of.!

■while

Harold

farming; in-1^54
farming accounted for only 6% • of 'total personal income, compared

v'v.

decline,',;

—

Southwest has tended to reduce the importance -of

:V'S

i 11

earn

live

growth

seen

Mr. Backman on "Prices": I
anticipate that the consumer price

some

Conn.

about 1,729,000 or over four times the 400,000

now

which

in kwh

of them

end

prices
highest

the
already

with

gain

have

;

BRIDGEPORT,

man

passed into stronger hands in recent years, with the percentage of
farms having over ;180: acres more-; than
doubling ip.^0^years. Almost half, the farm operators have work at off-fami
jobs, h«.d many

their lows.

pletely in the '..drought, area; had; art excellent

seek

James B.

Mazer has joined the staff of Nor¬
F. Dacey &

President

averages

will

system operations. West Texas Utilities, the subsidiary

broken

1958

urer;

to farming with g wide
variety of . products .including Litrus frdits and winter vegetables;
in addition to
livestock, eotton, corn gnd wheat, rice, etc; The long
Texas drought which
was;broken this 'year had little effect on

likely that the
touched

Hays, Jr., President and Treas¬
Robert E. Sherwood, Viceand
Secretary;
and

Dacey

(Special to The Financial Chronicle)

lV^Territory; served; Is 'largely ^

Helen

Dow-Jones

With Norman F.
*

Oklahoma, 9% from Louisiana,

Arkansas;;

from $43 million to about $136 million.':

May.
e.v By Vy"
.

Co., Inc.

Financial Chronicle)

plant account probably now :exceeds $600 million, compared with
$176 million at; the end of 1946.V Electric revenues have increased

•:

that time .it is

wciu

Southern

Central & South West became an integrated holding
company
early in 1947, the recapitalization/ and system set-up having been
approved, by the SEC and the -courts. The system ".has*
enjoyed
vigorous growth in the 11 years which have elapsed. Generating
kw

course,:}';

run

company

w.uuu

capability is

/should

toe

brief, .and''':;
t h e y ' should 4. }
provide good; Hi.buying points. '
This recession, };;
which began ^
1 a s t J u 1 y, i

integrated utility holding

Light, Public Service of Oklahoma,
Southwestern Gas & Electric and West Texas Utilities. The
system
serves electricity to a
population of about 2,700,000 in the states of
Texas, Oklahoma, Arkansas and Louisiana. Some 57% of revenues
•are obtained from
Texas, 30% from

'•

Miss Slade

wutx

First

Corporation, and prior thereto
with Johnson, Lane, Space &

offices at 64 Ponce de Leon Ave.,
Northeast.
Officers
are
William

•

with

were

ATLANTA, Ga.—U. S. Securities
Corporation has been formed with

Central & South West Corp.

Vi-f

(Specinll to The

By OWEN ELY

x?m

formerly

Formed in Atlanta

1958 may be "a

resent an opportunity for intens-

Corp.

546 Fifth Avenue at 45th

Street, New York 36, New York

Hours, 9 A.M. to 3 P.M. Mondays through Fridays
Open Thursdays till 6 P.M.
•

Member Federal Deposit Insurance Corporation

The Commercial and Financial Chronicle

(116)

Continued from

A Fail

panies which would

first page

Appiaisal oi

t
_

Memphis decision is an ex-

Qther

the

doctrine

the

tension

applicable

...

The

has

dedsion

other
parties
in
^\at particular
bec0me final.
The

they

would

have

obtain

refund

the

Jhf rate'ln1
rate

held that Phillips
was a natural
in Mav of 1953. The

term
term contrart

long
long

oomnanv

electricity

for the
the sale of gas and

s
§Upreme
court affirmed that result
1954. During that
suU in June 0{
of 1954
jnterjra the Commission did not

could not be changed by the urnuni-

of a new rate sub

lateral tiling

}?5iL0:S1?MS
Commission under section 205 of

attempt to
force Phillips
and
other
independent producers to
comply with the Natural Gas Act.

the Federal flower Act or section

of the Natural Gas Act.

should
facts

pointed

out

Mobile

the

that

less

Sierra

and

have been fruit¬

would

well

with

inconsistent

;

The

rected

opinion
the

in ^ Memphis di¬
Commission to reject

by United
Gas Pipeline Company.
It fol¬
lows, as was mentioned earlier,
that all companies similarly situ¬
ated would have to do likewise,
but there is another principle, not
mentioned or, considered by the

Court, which, it
come into
play.
stitutional

fiscation

seems to me, may

Would the con¬
provision against con¬

of.

property

protect

hard

the Commission's position

make bad law.

cases

could

sions

provision
ments

overcome

the

similar

service

the

the creation of

such

must

sums

refund

that decision is not final, any ap-

pealable order issued by the Commission

and

year,

The

total

creation

effort

litigation

amount

such

mass

subject to refund for the total
time all existing suspended rates
been in effect was approxi-

any

one

after

avoid unnecessary

will. not, endeavor

irreparably

had

mately the

the

litigation clearly would not be in
the
public interest, and can, I
hope, be avoided.
Nevertheless, the Commission,

all

their customers,

the

involved

Memphis,
w h e t h e r >' in
accord
with, or
contrary to it, will be appealed,

1, 1957, the total
amount being collected subject to
refund was
about $217
million
per

is * based

which

principle

of-.Nov.

Memphis decision presents
analogous situation. So long as

are collecting insubject to refund

rates

section

great volume of

The

agree-

one

presently

creased
under

litigation/

which,
in the Memphis case, has
now
been held to have no efficacy,
If (the Memphis case becomes the
law of the land, it would seem to
follow that all pipeline companies
which

prejudice
now

may

have,

rights

any

here-

acquire, if the Memphis de-

cision

the

becomes

law

the

amount.

Indeed, "land.- Although the Commission
^rather logically be con- does not recognize Memphis as
-tended that all rate increases obfinal or binding in any manner
tamed
at
any
time
since
the at
this
time,
the
Commission
passage of the Natural Gas Act,
nevertheless has not ignored the
by umlatenal rate filings under3
possibility that it may become so.
section 4 are a nullity and must
In an order issued this week,
be
reiunded, with the. possible the Commission declined
at that
it

same

may

exception

those

which

cases

time to pass on a motion to dismiss a pipeline rate case, filed

settled by agreement of all
parties and with approval of the
were

pursuant to section 4. In the

Commission. J will come back to

order,

FPr»o.
FPC
s Interim

does

Commission
such

the

PaIi/i.t

Policy

Federal

Power

to do under

propose

circumstances?

The

same

however,

the Commission
ordered the pipeline company to
l30st a bond for the entire amount
of the increase or
supply other
satisfactory evidence of abilitv to

this subject shortly.

What

refund

the

entire, amount.

Per-

Com-

sonally, I; believe that by such
mission will do all it can to obtain
action,, we have done ; the best
a
review of this decision by the
that could be done, in this diffiSupreme
Court.
The
Solicitor cult situation, to protect the pubGeneral, with the cooperation of' lie interest. *
the Commission, has
already filed •
.

with the Supreme Court a petition
for
certiorari. ; If
certiorari
is

Outlook for Investors
What

store

lor

investors

granted, the Commission will sup- in natural gas pipeline securities
ply pertinent and factual informa-- if the Memphis case is not retion to the Solicitor General to versed? I do not believe
that this
assist him in urging the Supreme-industry
necessarily must become
Court to give some
priority to this bankrupt if this decision stands.
case.*,The Solicitor General and
The demand for natural gas is
his
stalf appreciate the
impor- as great now as it was before the
tance of this case.
Memphis decision. There is still
I
confidently expect that the a market and a seemingly inSupreme Court will grant certio- satiable demand for the
product.
rari. I am hopeful that the Court Unlike an old overcoat
auto-

will

hear

during
one

as-to

decide

term.

make

can

tion

and

this

the

In the

predic-

Court's

decision will be.

case

course

positive

what

this

final

will do

our

best, with due - regard for the
rights of consumers, distributing
companies,- pipelines,
and
producers, to maintain equilibrium in
this

vast segment

economy.
will

mission
the

Court of

This

mandate

less

the

grants

our

nation's

Memphis decision
binding on the Com-

until

certiorari.

The

not be

the

mandate

from

Appeals reaches
will

Supreme
the

certiorari,

not

issue

Court

us.
un-

denies

Supreme Court
no

mobile,

eld

gas

ously

used,

serve

longer.

demand

and

supplies,

cannot

Where
a

mandate will

until the Supreme Court
has
inally disposed of the matter.

lssue

previ-

made

there

supply, sales

purchases will be made.

•

meantime,

thereby' prevent the public from
getting the natural gas service it

public?

needs and deserves.

was no

„I doubt very

essential ingredients for
"Mustry remain.

to
a

and

Thus the
a

healthy

Some
hopeful

pipeline companies are
that they can reach a
settlement of their pending cases
with their customers. The City of
Memphis itself. has been
and

willing

negotiations.

participant

active

such
Numerous distribut-

i^g

companies fully realize that
neither 1hey nor their customers
want, a refund which bankrupts
the long distance transporter and
terminates or even jeopardizes future service.
A number of the
pipeline com-

much if the Court.'

A'number?of pipeline compa¬
comprehended the magnitude of. nies had expected to raise sub¬
the result of what it was doing,; stantial' sums; of money for ex¬
and

realized

d baling

that

addition

the

with the price

to-

of gas to

City of Memphis, it

was

Consequently, I
Court ! considered

;

tional

point: just

considered, whether

doubt
the

the

constitu¬

mentioned,'
or

not United

found that it is in the public in¬
terest that; the facilities of certain

companies be, enlarged, and has
found such expansion to be feasi¬
ble.
It would be regrettable in¬

deed, if this needed expansion
Pipeline Company, or any r
did not take place as scheduled.
company similarly situated, would ;;
The public needs. the additional
bev entitled to have a quantum:
and
improved service which
meruit recovery for gas delivered,
would thereby be rendered, and
if it is not entitled to the filed
at
this
time,
particularly,! our
rate. -Those
questions were not
covered in the Memphis decision. economy needs the benefit of the
J
expenditure
of
these many mil¬
I don't profess to have unequivo¬
lions of dollars for plant
con¬
cal answers to. them, but I will
struction.
"
'
'
repeat that I find it difficult to
Gas

believe that the Memphis

decision

will

ultimately cause the bank¬
an important part of the
natural gas pipeline industry, and

ruptcy of

Expediting

Rate Decisions

Necessity is the mother of in¬
vention.

Let

all

our.

part

^e commission would have been

It was -quite generally thought
that the effect of these two deci*

Thursday, January 9,*1958

regulated company in a business

in the.,
cases
affected
with
a
would, I believe, tend to
public interest
gUpreme court. Undoubtedly any
cause
any judge who>was unfafrom
refunding money to the ex¬
incjepen(jent producer would have
miliar with the regulatory pro resjs^ed any effort of the Com- tent that if thereby become bank¬
ess, to be sympathetic w:ith the
missjon
assert jurisdiction over
purchasers, the
t
during that period and would
in those cases. - Those cases
are,
haye
utiiized
appropriate court
in
myopinio:action for that purpose. The only
the* truth of the old adage that
resu^ 0f sucb untimely efforts by
.

•

longer able

to render necessary service to the

lion dollars in refunds.

Protection Against Confiscation

until

cases

than

the rate schedules filed

tne

rupt and thus

pansion
during
1958.. > As ryou
know, such expansion must: be
set- - approved by the Federal Power
resultant, over-payment "ofIncome ting' a precedent involving, as-of - Commission before it v can ? take
now, more than tw6 hundred mil- '• place.
In other words, FPCrhas
right

a* -<—U-; tsrsrA'o&t
order.

re¬

refund.- All companies which, had
to make refunds would have the

andThere is ample-precedent for

investigation

large sums would also, re¬
ceive large
refunds from other
pipelines from whom they have
purchased. Some would receive

Existing Serious Situation
completed

have

fund

WHAT

MAKES

C H ES S I E'S

Number 5706

187

Volume

.The Commercial and Financial Chronicle

and

effort to keep the nat¬
industry • alive, strong,
growing. I suspect that we

may

find, that a rate case under

in a great

have

ural

passing on applications to increase
rates.. It may be found that our

gas

not

rules

section 5 can be procesed in much

considered

and

revised

its

view

this

Legislative

use

procedures;-should

Memphis decisions 'can be
by appropriate legisla¬
although
such
legislation
could only operate prospectively.
corrected

changed

tion,

time,, than was ever situation, I am sure the Commis¬
thought; possible. / We know that, sion will revise its procedures in
a case, the pipeline com¬
any way that is found to be proper

gas-

report which is now being printed.
Congress has many times demon¬

the

strated

Perhaps those who play a part
cannot be forthcoming until, in the marketing of pipeline se¬
pipeline- company
is first, curities can revise their
procedures
granted reasonable rates, it and their customary way of
doing
would; seem that they would like¬ business and find
ways of doing
wise

cooperate to bring the case
speedy conclusion. The Com¬
will, I know,
do
everything they can to ex¬
pedite their work, so that our;
economy will not suffer unneces¬
sarily, and to the end that the
public will get the increased nat¬
ural gas service it requires.
*
/
to a

mission and its staff

All

have

heretofore

sidered that section 5

the

for

method

purpose

was

lowering

enacted

rates,

render

their

service.

utmost

way
we

oi"

who

another.
are

those
a

called

Let

which

things

panic

which

where

say

and

will

pre¬

panic

;

for.

it if
understand

oppose

and

deemed

that

people"

only,

the

"some

such

persons

to admit

the
;

to face

that, after all, a pipeline
must remain solvent if

company
il is
to

render

service.

There

indication of whafcr

commissiop may do in certain
in the future, he also sue-

eases

ceeds in

saying

his

preceding

reality and

make

referred

his

sentence.)
,
•
:
^
The Memphis decision is forcing

they

(Let

consumers.

it clear

groups

There may be some good which

boring and disappointing

listeners.

succeeds

anything

of interest otr
value to his audience, he
subjects
himself

to ..the

criticism, that

hasipre-judged issues before

hiw*.

what

I have

tried to, make
the

discussed, I have
fair appraisal

existing serious situation.:/

will come out of the present dif-

ficut situation.

Some

people, both
industry and in
field, have oveiv

in the natural gas

the

would

ascertain

position to affect

reactions

interests

any

facts.

that

see

bad for

The Federal Power Com¬

know

try

times

so.

industry, apparently on the theory
that if the industry wants it, it's

speedily

of-^ regulatory commission

speak J en h subject of current,
interest in his field. If he succeeds*
in avoiding
anjr comments wbicfi
could, in or out off context, ; be.'

supported by any segment of the

has been

keF

have opposed any legislation

and

will support such legis¬
lation, and I for one do not now

crisis, the psychologi¬
cal factor may tip the scales one

vent

and

they

urge

act

can

>in-

any * to

a
rate increase was-necessary iii
order for service to be rendered,

mission

natural

of economic

when the need to do

shown.

industry healthy and able to

gas

psychological

con¬

providing

their part in keeping the

that

regard to the question of whether

increase

a;, rate

herentiy uevil th'ihg^without

would supply all the data
to expedite action,, tion,
our
staff would, request, as and, in so doing would be lim¬
long before the Memphis decision.
as it possibly could.
When ited only by existing law and Such a recommendation will ap¬
customer companies realize protection of the public .interest.
pear in the Commission's annual

that; additional supplies of needed

believed, or have acted as seems to be good reason to
hopothough they believed, that each that the present difficult situation
issue merely presented the ques¬ will
ultimately lead to creation of
tion of "vvliom are you for?—the a
better environment in. which to
consumer or the industry?"
Such dispose of regulatory- problems.
persons
have, for example, op¬
It is always difficult for a memposed

already; on

favoring such legisla¬
having; taken such action

record

and necessary

panyi

the-

Commission.

The

in such

that

Sierra,

and

29:'

have

Recourse

The effect of the Mobile,

shor t e r

soon

(117)

political

simplified

the

various

of the natural gas

Securities Salesman's Corner

problems

industry.

They
By JOHN DUTTON

Don't Let Them

Forget

YOU!
One

GROW?

LROAD

of a series telling what Chesapeake and Ohio

doing to make this

There

bigger, better railroad.

are

people who will
securities only occasion¬

invest in

many

ally. Sometimes
mm

pass

again

they

think

Others

hings

fast

move

2, 1958—first business day of the

nuary

the C&O

million pier now

90,000 sliareowners

C&O's Port of

1957 operations.

and security

*ate

flash annual report

According to financial

analysts, such fast report-

history".

"makes

continuing forward looking

one

program

Chesapeake and Ohio shippers

con-

ly superior transportation service. In
on

to the

modern coal classification facil-

Russell, Ky.,
merchandise

lere

a new

freight

nically classifies
freight

cars

pier, most modern

cargo

faster,
over

things

the Atlantic coast,

ships faster than

All these

just-completed bulk

that shipments

mean

Ohio.

Chessie's railroad

going!

goes

into

move

Chesapeake and

keeps growing and

■:7

opera-

ANOTHER GOOD YEAR FOR

main

sidered

the

new

are

You

Never

Other
—

can

...

$233

168

......

170

tell them the location

operating

revenues

shipment almost instantly.

Expenses, taxes, etc.-net

Know

Net income

...

ledo, which last

year

established

all-

Earned per common

Dividend paid

father

substantial

that

funds

could
in

of financing

Since
tion

in¬

income

desir¬
that can

to you because some¬

that likes you heard

opportunity.

,■<

of such
.a

know where

arise. Here's one from
week's experiences.
Several
may

$419

$364

$352

casionally I would write him and

keep in touch by mail.

I sold some good bonds
customer who sold his house
moved to another city.
Oc¬

years ago
to

$8.36

$8.28

his home

$4.00

$3,625

about

the

and

man

a copy

and I received a tel¬

my,

the

suffered
eral

former

customer's

weeks,
that

out

;

don't have enough
properly follow hundreds
so the best
method is to use the mails, com¬
bined with an occasional phone
just

of small accounts and

•

"
.

•

■

•

NEWPORT
••

*•

NEWS*

post¬
cards
that were
mailed by an
investment dealer that were dig¬
nified
and
also carried a con¬
call.

had

decline for

sev¬

this

dealer

quality

stocks

pointed
decline

weak

and
in¬

vestor owned stocks that declined
and his

were

did

so,

while

the

rest

the

the few that
the same time

among

market-was

declining, then he would
something to worry about.
issue

whether

consider

not the

investor's 'securities
because

quality

when

not

have

The
was

quality of
was

stocks

adequatewill re¬

markets

once
again
higher.
An offer to check
the quality of the investor's hold¬
cover

turn

included in the brief
generalized and
timely subjects can be placed be¬
fore your clientele in- this way

ings

was

message..

Other

and, if you think it through, there
is quite a bit you can say that
will be of helpful interest to those
of

customers who

your

casionally send you an
someone

only oc¬
order.

you

are

adding another

potential

booster to your own
Let people know that yon

cause.

haven't

forgotten them and they

won't forget you.

W. F. A. Palmer V.-P.

Of Mullaney,
CHICAGO,

Wells

111.—William F. A.

Palmer has been elected Assistant

Vice-President of Mullaney, Wells

135 South La Salle
members of the Midwest

<& .Company,

Street,
Stock

Exchange.

;;

W. H. Morion Co.

Names Officers
rated,
York

time to

of them.

one

recently

declining stock market.

recom¬

Use the Mails

•;

You

Railway

market
severe

and

cards

are.

with other stocks in

3809 TERMINAL TOWER, CLEVELAND 1, OHIO

they

Here is a theme for

When

mendation.

esapeake and Ohio

these

stepped into another prom¬

ising account which I would have
never
met if it hadn't been for

of C&O's "Flash Report" for 1957? Just write.

said

how readable

recom¬

years.
He introduced me to
his friend over the telephone, and

Last week

two

you

surprising how much

can

who bought

ephone call from my former cus¬
tomer whom I hadn't seen in over

I have

lent and it is

they began talking

investments.

mended

ecord of .18.7 million tons, will be sub¬

postal cards.

back

Every time you do business with*

recommenda¬

$432

last

photo-offsetting

them
regular two-cent
The effect is excel¬

people know people you

become

spirit

He has them printed

say.

the

main

can

There may be a

piece

per common

investor

large one.
The young person
starting Out with a small account
can
know
other
people whom
they may send to you. The young
married
man
who
buys a few
shares
of a
speculative growth
stock hoping for a capital reward
in the future may have a retired

lie revisited

apacity of C&O's coal handling facilities

Whence

From

though

even

and

sources

The Order Grew

$219

shippers know that
Total

traffic offices

con¬

not steady investors.

The small

never

Merchandise:

Car Location Information

■CLIC for short

business

they

one

Coal and coke

dissatisfied with

potential

be directed

service, they should be

your

reason

twice, and they have

the

good printer on a card sev¬
eral times larger than the postal
card.' Then this printer''reduces

various ways and the

If people have done business with

able

Operating Revenues.(millions)^>C;,,;:1957^>4956

can

purpose

securities.

with push-button

and measured control.

This

of doing this is to
keep contacts alive which some¬
day may turn out to be valuable.

vest

CHESSIE'S RAILROAD

endless stream of

before them.

your name

mother

facility

occa¬

month

dependably, when you route them

the modern, efficient

Thi»'
once

him and when he has Some¬

thing to

them

additional

ton a second.

fully automatic

this month. This $5 million

andise

Newport News, Va., export coal

had

twice

moves

count that warranted your

be done in

under construction. And

Also, at this port

unloads

p-to-tlie-minute reporting is just
f

dumping was up one-sixth over the year-before
record.

have

when

investment.

*:y.

inspiring message.

dealer sends out these cards

sional trade with you but have not
been
the
active substantial ac¬

you once

billion dollar corporation

bonds

turn

may

follow¬
ing them closely. Yet these people
should be followed regularly from
time to time and you should keep

stantially increased by the addition of

7ear—Chesapeake and Ohio published

they

stocks

may

two will

a year or

before

fidence

Recently, I

saw

some

Morton

Co.

Incorpo¬

bonds,

Exchange

tributors

Place, New
City, underwriters and dis¬
20

state

and

municipal

that Peter Vhas been elected Viceand Francis P. Galla¬

announced

Philip

President

gher, Jr.,

Assistant

Vice-President,

(118)
The Commercial and Financial
Chronicle

Continued

from

page

the

Export-Import Bank

stall

international

The Bminess Outlook and

TH-sp-udmlvfu'
The Pesamists;

ViAnrc
Views

(4)

nf the
the
1Df

short

avoid

tional

recurring
crises,

soft'^rren^Mtk^

omies
0mies in
in
a
a

—^

out

tre-

internal

are

inCrease

s0_caiied

to.

hard

;

•

v a n c e s

will

credit policy. Wh^e
I
rtlU^T^dvan^P1.4®1 '•tovestment4ta plant+d if
'u„til"these
equipment, and
the tern- **

tak®s

all-

exports

t"Vv\

years.

ujhudiut.Technological

1/gln

are

_•

econ-

preparation for

drive

the

their

Thursday, January 9, 1953

of creditt restraint. These
segments

internathe so-

monetary

revamping

over
over

period of time exert

world

trade

whole.

Inventory changes
changes
inventory

effects

industrial
production
over
the foreign and
domestic business
is
past 12 to 18 months as proof that anticipated.
not all segments of the
economy,
(3) Growth in Capital
Investparticipated in the excesses. Somement—New products will
stimusegments of the economy such as Tate
investment in new
plant and
durable goods and housing were
equipment at an accelerated
adversely affected by the policy over
rate
the

undergoing revision will have

far-reaching

dtuatipnandofm^rate^greate
tion and salcs, it can mean only
rntensUyrSeVeaHer"
I shaS refer one thing—a slower rate of
growth
for the economy

fore-

The international Trade Policies
now

Specific Business Advice
to this group,as the pessimists.

monetary

crisis.

C01rf e<;tea;

increase
nf
m^pi'nnatinn nf
r,m
of modernization
of ,old
also increase the

are

f H
coirected.

nn
po

•

plants.

will

rate

of
currency na-;
Basic Soundness 0/iFcon-f obsolescence throughout
general
^ons
The immediate .effect on
summary of the pnn- level of business
In the past, serious
industry.
activity. Unforreces-^
"Pal factors -making for a slower
will be to increase
competition "ions w business have been ac-,; >(4) Increasing Rate of Productunately.mwntory
rate of growth in the
{t
figures
are the and lower profit margins.?:
economy in least
Technoi0gical .progress
^
compamed by a
reliable
of
the - published
future years is as follows:
brings a continuing rise in
statistics.
At the v present
(6),The
decline
in
protime,
(1) Production facilities are the
me
puousiieu
published inventory figures
« in
of
again ample to meet all consumer .do not
£
short-term
credit to
finance
appear to
be excessive

mendous

...

brief

impact

the

borpo^e £e<^'-

^Q^^^^

demands

and
defense
ire--when
require
The only deficiency
is in public facilities such
as

sales.

However, -calls lor a, reyiew

ments.

schools, etc. This

ways,

question

{Z)

try

oKrxi.f

what

rioo

anticipate

will

ivx

inflation encourages

fKo

inaus-

Jo^lioo

Iigures.

o+ool

expanded

the assumption that
demand would
continue to grow

vigorously. '

also

accumulation

encourages
the
inventories
in

anticipation of rising prices. .It
discourages consumer buying. This
the

increases
m
i

1958-.

(3)

risk

recession

Rising

prices

adversely af-

feet

umt sales.
Not all segments
the population
participate

equally
comes.

m the rise in personal
The incomes of

in-

?Sr,lag
IhZ' ineK

murine

inventory liquidation of greater

than presently anticipated would -come as a shock to
•

;

segments
nation

price,

wages,

(7) The Gr0wth mTnd^btedJiess
has

accompaniedtherapid expart-;+?v'
If the economy \
grow at

export boom of the past seven
resulting from the industrial
.expansion that has taken place

.throughout the free world

and the

inflation that followed. The rate
of growth and the
height to which
exports soared may be attributed
to governmental
expenditures under the Marshall
Plan, economic
assistance to

living

of vast
population. For

our

geared

mass

produc-

The^^rk^u^

',fnrptpP
ii^t
in-indebtedness' the steel industry >bnce'':did^
::The'
'X^-;'^^^^^^
Throughout the Ko- economy is much more
flexible

growth

place?

rean

War

the

Federal

debt

and

grew

rapidly.

This was followed in the
1955 through 1957 by a
rapid
increase in
consumer, corporate

public

indebtedness.

maintain our military
throughout the world.
In
months, additional finan•

cial

and

rate

Gross National

Dollar

(Est.)
1958

Change

1957-58

1956

1957

.87

Government

Federal, State

and Local

Business

■'

Plant and
Equipments.

—

Durables

Non-Durables
Services
Other

Percent

^TpmS pLZv

of growth of
manufacturers

offset, by
mortgage

+ 3%
+ 4%
+ 5%

134

142

148

101

106

111

417

439

450

+ 12

+ 2i/2%

448-454

Statistical Forecast for 1958

(Billions of
Dollars)
*rsonal Income
(Billions of

1956

1957

1958

143

144

138

1957-58

—6

onstruction Expenditu
(Billions of

435

450

+ 15

327

344

354

+10.

281

294

na^

+ 13

1.0

1.05

5.8

teel Production
-

(Millions

115

Tons)

6.2

5.8*

(Billions of
Dollars)
(1947-49

(Millions

—x..

corrected
-

15.8

116

100)
-

2.6

Employees)
Maximum
Unemployed

No,'i;^ricultural
(
Millions of

^Range

^vv.x.

grew

114

109**

prom

—5

feet

margins.
will be to

Employment.

5.6

6.0

out

for

1958:

®h:

Growth

16.6

17.0

120

121

2.9

3.4

The

over-all

ef-

de,

some

pessimists'

107

months

forecast

the

initiate
dpfioit

return

firvincine bv

the

,ofL
JLtimfcts
p
if,

tn+ni

can

11UcilICJIls'

•

^hf onHmisto^
J

nt
that the Pollcy of credit restiamt
the ^mary reason industrial

Production
this past

year.

They point out that

the V°UcV should be reversed immediately to avoid a rapid downturn in mdustnal production,
The officials
"""
1
of the Federal Re¬
serve

System
have
stated that inflation is

optimists contend that
the

than

repeatedly
to be

downturn

of^Sfaiice-^th^v
heinv n.Srti^S
a1?, be nS Predicted

growth in

wdh Wflatfon the principal
deterrent to economic stabihty
Th^ period will be
characterized
by*
'
- *
■
■n
'

excesses

•

(1) Inflation—Demands for
capwill exceed
savings.
Wages
will rise faster than iiicreases in
-

basically sound; that productivity.
more

than

cite

ital

beenmuThmor^fLctivfinlim3
iting and
mucn

our .econ-

etiective

the

lim-

growth of

generally realized,
lack

growth

tific

advances

will

bring

I.;.

busi-

new

Vigorous

competition

from

abroad

for

„

1954

extent

wish
^

re-

nici

nAmn

date,

tor

waS

avoid

easing

some

in the Policy of credit restraint
has taken Iplace but it has been
j

ir 8

nsvchological in its effect.

V ^ 8

•

No material change

•

<.k«

«innpv

outstendiM hw owmtea

s/tem'/ adj/tine

^em^is adjusting
further decline

^°ase
-

its

policy to
A

the

the monev
mone'

i+r7

to^

supply but at a

S^PP f

lace

iyo4.

The °P«mists contend that the
Federal

Reserve

anticipate

System

shouic

business recession

and

severe

competition
between^ithe
products and the old.

the

eredit

and

in the future. The
be
derived
^tcurrence.

matter

that

o£

mis+ake

a^ /p
and

state

easing

This
coin.
lhis ls a
a cplos-

••

Economy

also

billion

a technological revolution of tremendous economic: significances

The

$35

our

finanrin?

Ex-

reasonable degree of
accuracy.
The
optimists: maintain
that the nation
is in themiidst of

the

4-.3

this

am?unt.s0.t^at
no
v
fiation
inherent ^dgeta
the deiicit

investment

ca."

im-

future.

Optimists' Views of the

Factorsin-

longer

The

111.

f?1
Government
bilhon peranum. The

econ-

Thfs

benefits

4-1

ueeii

wfll

This

.,'lirv

$89

strong

earch 'md D^elopment.

two

intensify the

restricting the

♦♦Range

approximate

<?nh

increase in expenditures

^ ™nJ°
^Uhon for toe
f™*''!
q\no

Population ? The increase in
rupuiaiiun. ±ne increase in
population is a
powerful
force

excess

.ii

<$»*
and extend its^ duration.
10%
dedine-extending* "over

economy

Employees)

for 1958:

government

sPer+ on research
researcn. '

the excesses to
be

are

that
-

mediate

Inde:

spent

—

period of

onsumer Price

the

armnmpnk

Pessimists Views

The pessimists
regard this as a
of transition
from a
high
level of industrial
expansion'to a
moderately
lower level. In addi—„

+ .05
—.4

2SW'

feared

r. S.

Automobile Prod
(Millions of Cars)

present-time, the total -cash expenditures by all the various units

with

1.3

seldom

expendi- i

fluctuations in business
activity. In fact, they are more
likely to rise than fall.
At the

municipality

These

Tr^«G^1pc;^c

frir

cyclical

con-

period

tion, there
47

Dollars)

(Millions)

local

tures.

perfect-

Residential Starts.
Non-Farm.

and

scien-

justmlnt^Veffect""ngS
tional

„_p.f

product will be small.

411

267

some-

FpHprai
Hpht
anri
aeot,
reaeral
corporate debt of other dept. and
industries, makine
for a rise in^ consumer
A contraction of
credit of $1
spending. It is estimated1-that to
billion in commercial bank"
loans
feed, clothe, house and educate
would adversely affect
the aggrethe erowine nooulation
under the
gate increase in indebtedness
in
1958. This is a net
decline from
he
the current year of
necessary to increase consumer
$li/2 billion,
exnendlitures
bv I morp
The impact of this
than
decline will
per annum
come
in the first half
nowerful
of.1958 force
results
in a
Such a decline will
be reflected
continuing high
ievel of consumer
in the Federal
spending? irreReserve Index of
spective of minor
Indus tual Pioduction
fluctuations in
and will be
business activity

Dollars)
onsumer
Expenditures
(Billions of
Dollars)

in-

national

debt,

dirP^pH

exert

debt, public

against recession but they do not
a
stabilizing influence comparable to that of Federal, state

the

billon

CHART HI

surance,

decline in the rate

dphf

£?n ^

Govgrnmehiit^^^^n^
Unerriloyment
^
\nf • fh^:
and
agriculturaP^^
price^^S^w U^Toim^S spading
provide
defense..^

billion per annum. This is a
corporate debt of
stabilizing influence to the
in 1958 should beomy. . ,v.
increases in real estate

—10%

s®ie"™c

stabilizing Hrce of

supports

The rate of increase in
indebtedness
in 1958 will be off
slightly
from that of 1957.
r-

q,]mpr
sumer

128

Gross National Product
397
Possible range for 3rd
Quarter

rwprn

Expenditures.'

ing, manufacturing and
marketing
of new products.

A 20 to 25%

Inventory Accumulation^
Residential Construction
Consumer

for

productivity, and

tific achievements in the

Adjusted to Annual Basis
1955

expenditures

defense,

Third Quarter Rates

Economic Group

.of

comes,

Product

(In Billions)

;

past;:

jn keeping with
increase in personal

time-^

The pessimists are
of.the. opinxvn
that
the
future
growth
in
jndebtednesS will'be at a lower
more

ments downward at the same
others are rising — a-far more

than took place in
any
sector in the

0ne

assistance
tance has
been
made
available by the World Bank

CHART H
—

hnw'"-miiph

tions,

recent

Sovietshave

jS-

self-regulating. Some induswill be
'Undergoing adjust-

tries

years

and

•

indu^ry\^aTansf;S

what, segments: of the
economy 'dominates ;?the,> Economy:, such
;as
the

wiU

take

rate>

Expenditures

0f?the

rapid■;/Broader Economic V Base.*
the over-all indebtedness oR growth in
industries and products
grow. The question:: has'
brought:-.greater diversity ;to
is_at what rate will it
grow and the
economy. ..;No. one'
a

pace,

years

'develon

mienis-exert^a tremenaous in+u-

Defense^ Against ^Serious C;!;

sion in

;(5) International Trade reflects
the nation will
the

forces

'International
crqditj.-, commodity

'■

industiy.
business, and confidence would be
ig to poatinue to
shaken.

^&bu^p^^^^C0me
Price
increases lower ^ended..t0
declined.

standard

^UCC*CUI

;

the rolling type
.ot^cpnomy^than in
under-developed na- future, the
growth in indebtedness the past.
This makes for greater
of
stock-piling
strategic js expected to take
place
in
all
stability but it does
notulrls® at alL ^ commodities, military assistance sectors of
notPliminate^^^
to**™*101* ™come rose expenditures, and the monies ex- lower rate the economy but at a cyclical fluctuations,; r ;;r t. 5

pensioners,
public servants and salaried work-

the

3nd ah*h? level * 3
%Y^anomlc Instability^—ReV

•.

estate; arKT+?U\vl Economic lntiabimv

Anov.

over-capacity in many industries antensity

Inflation

real

higher than the published figures.

puDiisiiea

to avoid the future rise in
construction costs. This has created
were

Cpmmodities and

in
capital outlays:'by- manufac-;
require- sage of time, other industries may
turers is anticipated in the
months
report similar situations. A period
•••

plant

ments

where facilities

speculative purchases of securities

ex-

raises

factor

oKoitx

cwitef

^capital ex

moderate the extent of the decline

-n
by
tit?)
S-increasing
noititep
Mense
mthe
oCmoney supply
.

jA1IT„tllvn

pnor to an actual : downturn
business. They call attention
the fact that it

mav

already be too

158

Number 5706

187

rolume

late to avoid a mild adjustment in
the first half of 1958.
*

appreciated.. The
limit has delayed

Vi.„rc

Suminary of Optimists
In

Views,

summaryvthe optimists

contracts.

are

belief that the future

>f the firm

>r°W%£
>?toetoaf dMerrent

4abUityiinfuture

debt tures for manufacturing
nies appears justified.

Federal
progress

rate 0f $2

the lower level of industrial

the confidence

tivity and sales

businessmen
.

years

They are of the opinion that the

....

By ARTHUR B. WAIXACE

This Week

tion costs has far exceeded increaseg
in personal income.
Easier
^ditVilVbehelpful
hn'stimulat:
the

have

not

tbat

effect

stimulating

same

terms

credit

easier

m
;

.L Li.,(

....

I/Fu sty let

point out that: forv

the economy throughout

,||he
purpose
of this forecast,' I have half,
■|
-I
•.

.11

nono

tin

.
.
.iirot*

,
V\£\

I issuined that there wdl be .no.'War.
In acktftion,J:^

the first

and. of only slight
help
to
li
h'ii'*
".""-A
v*
i _'

■

wom^ike to add

Quite
-

_•

The increase in

1956

1957

?'?t !'ir S qi!

Morgan &. Co. 3.77 4.12 2.54 3.23
general pattern to

;;as the formal reports are released,
W.H1 of course explain the^ ex-

has

to-do

a
-

made.... R

been

about their heavy
losses in'secu"VU.J

tain
IcUU unit
III 11L sales
bctlca near
llCdl current
EUllCIli, ' levels,
1CVC1S.

1937

12-month* The 1957 results are be shown in the next few weeks

recorded below.
rt

that easier credit terms will main-

business during the balance of the

Investments

-Loan^-

1956

If this is the

consSSef

weapons to
durables is not in step
take-time-to" accom- wTthTeelintog"peWnal""inWes.
and may well be a drag on About all that can be" expected "is,
: plish
l'l'slv and
may well be a drag on About all that can be expected is

VieWkM tHSTiicbiiMhv

r'lii- J

AVERAGE RATE OF RETURN

First, the operating earnings
results continue to be impressive.
Right along, these banks have New
been chalking up better earnings J-p.

Increase in government'have had in the past. A 5% rise
i reversal of the policy- will bring- spending will be too late to alter in residential building is about as
kbout a sharp upturn in produc-. the decline in business during the much as can be hoped for in 1958.
Jion throughout, the second half ; first half of 1958. The transition
increases in the price of most

conventional

nounced
new high rates of return
loans, and on investments:

|n the first half: of ;_1958 and that

■'IF1958'-

Bank Stocks

—

feleased hy the New York City
banks on their 1957 results merit
some comment.
r
v

ino- residential buildine but it will

nessmen m

ac-

The rise in residential construc-

„

whose industries busipolicy of credit restraint will act ness is down substantially from
is a deterrent to economic growth- a year ago. A
: - /;■, ,
: • • - •
,

Bank and Insurance Stocks

inventory decline will be at the
billion in keeping with

This has magnified the

fpSU^ a»ShtT
economic
„(2' The Federal Reserve policy
of credit
restraint to
has-been
daily
disturbing
those espebusi-

compa-

liquidity problem at a time when
of

pay-

merlts to industry on government

(119)

The Commercial and Financial Chronicle

- *

there may be

rity holdings. Well,

prices in addition

ceptionally
good earnings from
1 '
operations.

" The deposit trend was also
mixed, with some banks reporting
them down; some higher. But
here, too, the changes in either
direction were not of much conwere much trimmed down by the sequence. In like manner, payexcellent recovery that the mar- out data was mixed, but this was
ket for high grade bonds has because of a number of increased

to a moderate rise in home con- no gainsaying that paper losses
hat 1. d° nor know what the state
^j ^abor; unrest and strikes' struction should increase total ex- ran to considerable amounts; and,
i
our
national
prepareaness ; is.'are to
^e antidpated in i958. a penditures for durables by about in several cases sizeable paper
low much additional
money, will* jjrotraete£. strike in the automo-; $1 billion in 1958.
•
losses became realized losses. But,
?b;bile- industry is regarded as aB Non-durables and services show first> some of the big PaPer losses

y""-- "--../"i "'l-

year.

for-the

lefenses

known.

lot

coming

Mde the following

is;'-likely,^possibility.
WQUid

Aicut

rPf?dit¥reS
for the com-

finso
1908.

-al

;

years

1958

more^Sse^to

the

Then, where losses were dividend payments and the un-,
they were utilized for even (percentagewise) changes m
important tax savings as offsets earnings.
opeiating earnings.
»
As was to be expected, most of

scored

in personal income • trend of personal incomes and the

taxes to bolster business is a,pos-

calendar^ jear - $2 billion
bud&et estimate for fis-

Such a /strike a-consistent rise over the
.materially alter the trend The
rate
of
increase
in

assumptions^oi blisiness4nil958.

M total $40. billion

jng

year

arbitrarily

have

purchasing

power

realized

dollar,

the

sibility< Congress will be alarmed This is an increase of $11 billion
over the decline in business and lor .1958 as against $13 billion in
1957.

This operation has been touched these banks showed lower price

%'V.;...rvthe.rise-i^unemployment.

(2) That, the Federal expendi-. ; (6)u Road, building and public
;.
In Conclusion
tures. for the calendar year. 1958; works programs will be acceler-. • imthe oast vou have often heard
nil' approximate $75 billion—up ..'ated to stimulate the-economy.
it said
that economists
sneak in
52 billion.over the current fiscal
>
;
generalities about the future but

this space

„

oar.

;: Summary

Vgejdom

make

before.

A bank

will agree that the

you

Long Term Trend.
optimists

the

I agree with

the

long

of^he economj^ will

ttond
t

that

about

the

rate

same

/-i \

Pr*ncjPal

the

uwm

decline

The

Scientific and technological ad-.
and an increase in govern-

d"e"°rl

future

devote

favorable position

suuawiiueu

most

tion

& To

'ZpettLn

pro-

, orrcn 11 y

H J

meet

the

an- aggressive

igh level of industrial growth in
s

ses,

deterrent

sti-

udthe

nnnrlt

lMif"{v*/\rin

5dVings,

[wage

dpolmp''in-' industrial

nrodnction

uecune_ in ^lnuusiriai proaucuon,

increases m excess of pro-

recovery

ires

•

fhemselves"inSeCUritieS
S°ld'
position
to

tonnd

•'

„

■

save importantly on taxes as a
result, and announced an all-time

tions will change quickly within
^
..dii

1957

$5.64

26.10

28.72

«>•

•

3.87

3.86

16.17

18,04

P.
r.

United

5.02

4.70

5.21

3.78

4.16
2.83

3.59

4.06

21,21

23.26

Trust

5.49

5.94

states Trust.

5.46

5.74

Trust

&
«

Morgan
MUigan

York

New

5.20

2.56

Manufacturers

§J.

4.24

3.78

liouaranty Trust

du.nnS
sl?arPly >mpr?™g 8anover_B.?k
price action of the market for Irving Trust

and

the': is^expected to be somewhat slower
wmrate of erowth will he- inflation ' ihan that experienced in the re■"
[rate of growth will be inflation, ceSi6nsl"df T94^ and 1954:^ The-;' petitive'.economy, business condi[inadequate rate

"principal

operation
•

the years ahead.

—

wucu chase Manhattan

been

has

process
V
.
^

intense

future

1956
$5.02

;

Bankers Trust

profits when

lindcr ^efficient sales organization is es- hfeh'crfldps1 °
the contennot last'
sentiai- " wiU "ay bi8 dividends
grh® win" dispute
di
l}0^
Inst for The
jnpre than nine to
the years.
tion that Chase Manhattan, registen months.
rate of

ances

-The

™

EARNINGS

can

strengthening your sales organiza-

•

industrial

OPERATING

Pnces
0t hlgh
8radeS
tchem.c
cm. Exoh.^.
There
be
doubt lmpr0Vethat this Empire
Trust

ra^e

growth will be inflation

be in

to realize substantial

|up

up;Ty.:intensified,. competition.. The

last decade.

cdlaraclerized bs a period of great-

term

and

t]}e past decade and it will be - suggestions:

ratios and higher rates

income to bank stocks for the investor?

may offset operating

helpful suggestions

Industrial production over the as to what a businessman should sonau extent. The bank
ssumptions Bare [conservative— years- is expected to continue to-do under present circumstances. I mediately reinvest the iunds in
L958 being an election year.
grow at about the same rate as in would like to make the following different issues than those sold,
think

earnings

that has sustained a paper loss in of earnings from operations than,
securities may sell to establish the in 1956 or earlier years. Doesn't
the loss. Such loss, as indicated, this argue better values in these1,

•

City

'Includes

——

Co;-—

Bank

Farmers

Trust.

S3,825gXTesTi95?o^m,5909sharS!

figures not comparable: 1950 .011
io onn ono shares: 1957on 12.000.000shares.
tTwo

ductivity,^mii brin^
the fore..

958.

jR^erver<^vstem^wiir

flfcdfvfe in SS
l;igfowth^s Congre^
L, nefirih
[Governmfenttolus

Jrise

credit and an increase in govern- ^ losses are to betjkept to a mini- Or, we can turn to Bankers Trust,
.
. .
I .
.
/ :/
,
which reported in its capital funds
: ; J •?!. B'(3) Expenditures for research summary a security profit of
■P;ass"-'Statistica.I; Forecast of Business -'should be maintained to assure a $4,453,510. Here, also, a new high

;rate

"iChart-H,lists the principal

Ihv.

national product and . (4) Prepare a study of your
trahCUlfitrnishes
eht
other measure-, ture- cash needs immediately so

the

end

Jri?

lint

Nrxw

-allrt''fv

Government

in
\

prudent for

lcipate

bonds,

some

the

tionai. ^proauct ,in w- was

countedv for

decline in the

others showed the

ICRm fttH. HCI5.

reverse.

.-5,'::,::;'

businessmen^ purchasing,;.value',.; of the dollarJMjJf AllfiAj SHItllHfS

recurrence-•

of?. por
thfeyear!l958, consumer price:s

'ish
ials
the
a
re-

ing

lint
sen

areiox^cted to remain at about
BOSTON, Mass.—Michael Vick^gradual transi-- currentTlevels1 so that little,, if any. ers^^ has been appointed public reai?H n°,Af^mVr^r If i eC?\°,my- change is. anticipated in the cost lations director of Vance, Sanders
^
J+c pf ^iving:.\"This wih be reflected- .«• ::cp^;haiw'',;'lll Devonshire St
°^a^"
e ^
: in a:.ldw0r:;\ratq': of .growth in the
-'V-v?'/----- *'
f f
tax:l^vfrs"is ;to be expected in. gross national product figures for< itihas been announced by Henry
order to
encou^ge savings, to re- 1958
V7»T. Vance, senior partner of the
hSttA, etr!
Ivf
3
Boston investment firm.
nnH+n
fh
+necr^my%^01Tim S 01»
/0SS •
* Vickers-'fdfrnGrlv served as astjiowth of
■•.Product
inere 'WiH.me

XT...

;

•

;L,'

' *; V

•

iAl

ed.

not

t a

than

exceed

imi

•

(1)

ous

months; and

•a

cl,pa

than
-

After two years of continu-

inflation, the imbalances

are

certainly

greater

mists

willing to concede but,

not

are

point
ahlv

loo

duration not
not
auration

ast is as follows:

to ten

reasonmg behind this fore-.

aid

5%;

nine

somewhat slower recovery

ice

?\y

37%. In view of the downturn

in the general economy, it is a
natural expectation to see loan
^ajs shrink somewhat and gov-

ernments

severe

out.

"as

than
the

e,n

opti-

pessimists

Inventories

lir

the

are

nrob—

serious

liquidity

factor

than

is
is

generation of
his family
to
firm

enter the fi

a s

which w
founded by
his

James ML

great-

Button, III

grandfather.

Boston,fnd ports.
accoant executive at Cail
&

Associates,

As expected, they

an- National Bank Building.
&

COMPARISON

New NATIONAL OVERSEAS AND

Inc.,

1957

ANALYSIS

EARNINGS

13 N. Y.

Walston & Go. Inc.

...

<•

•j

and

aiound

82%

-n

Patterson & Co., Inc., which has
been dissolved.

•

aden, somaliland protectorate,
northern and southern rhodesia.

City

Bank Stocks

Opens Tucson Branch

stilldeclining, a somewhat
generally "sharper.decline in "plant expendi.a

as an
Byoir

prices.will be reflected in 1958.
York.
He previously was asso- rDTNm AVQ RANK" TIMITFD
fphpvai
Statp
lonal
pvtt
u
AjKliNLILAlk) IJAi^IV
Federal,
State anh
and local
ex- cjated with the Boston Herald,
Ahna/ganiatinf! National Bank of India Ltd.
Penditures are expected to rise by
and Grindlays Bank Ltd.
§4 hillion with defense spending
Head OfTice:
up $1 billion from current level
26 BISHOPSGATE, LONDON, E.C.2
0f expenditures and State and
London Branches:
local expenditures up $3 billion.
13 ST. JAMES'S SQUARE, S.W.I
Plant and equipment expendi54 PARLIAMENT STREET, S.W.I
TUCSON, Ariz—Walston & Co.,
tures are expected to be $4 billion
Bankers to the Government in: aden, kenya,
less. This is somewhat in excess Inc* has opened a branch at 23
of the, published statistics reflect- East Alameda under the manage- uganda, Zanzibar & somaliland protectoratb
ing industry intentions for the ment of Robert Patterson.
Mr.
Branches in:
comincr vear
Vhth nlant ooera—
india, Pakistan, ceylon, burma, kenya,
coming year Wltn plant opera patterson was President of Robert
Tanganyika, zanzibar. uganda.
-

y. higher than stated, and the tions?5 estimated

decline

and state and munici-

Hutton & Co.,
1S t"0 fourth

bers & Wiswell, inc.,

th?n the optimist, and

in--

ine

Lilcl

the

more opti-. place throughout 1957.-The full
irnstic than the pessimist.
I an- jmpact of the over-all rise in 1957
ticipate a decline in business of

loan vol-

important
degree. But Bankers Trust's govments were up about 22% from a
year earlier, and Empire Trust's
to

rve

case was

Mr. Hutton,
oi James

son

M. Hutton, Jr.,
a^so
W. E.

ley

1958.

pals increase in the months
He joined the firm in Septemahead. New York Trust and J. P. ber, 1952, after two years with
-y.,_-,a
Morgan & Co. are the only large New England Mutual Life Insur; Th^'increase ^in gross national sistant public relations director New York City banks that have ance Company. He will be in W.
protot am°unts to' 2^%;, Prac- and account executive at Cham- thus far issued their annual re- E. Hutton's Cincinnati office, First

set.

changed

ume

future.;

isi-

partn«rof

Street, New York City, members

ures in

porting lower loan volmodestly higher govern-

es^

■

...

JameSjM. Hutton, HI, has been

However, a laigci W. E. Hutton & Co., 14 wall

amount was shown by Chemical

easing in credit to reset your

hat

;;

W. E. Hutton Partner

7 cente; New York Trusts $mrtted

28 cents-

take advantage of

you may

J. M. Hutton, III, Is

The <luartedy expenditure fig-' indebtedness or capital structure Corn Exchange, $1.12 per share, of the New
Chrn-t H are adjusted to mi in the period ahead. Anticipate
There was a considerably mixed J01'k stoc„k
1CT :- annual t^sis., It shopld be noted the possibility that any relaxing situation at the year-end in the Exchange, efKg that all- figures are expressed in; 0f the credit restraint policy in trend in loans and that in United fective Jan. 1,
^

rial
Ihi-<

shown, $5.64.

First National City's security loss
fuonly 11 cents per share;

economy '
, ^menU-of
business activity with that
me-economyfbrecasts for 1958>

growth-of
growtn
01

•dit

ady

strong competitive position in the operating figure was

ul> the.gross

consumer

if debt, will ftoan ce
of
o

eco-

p0™icpending groiips that make technological economy of today.

mote gradual

am5ora"eaI^

ment spending.
B

wdl' WBiW

Bulletin

Request

Laird, Bissell & Meeds
York Stock Exchange
American Stock Exchange

Members New

Members
120

BROAHWAY, NEW
Telephone:
Bell

YORK $. N. Y.

BArclaj.

re/etype—NY 1-1248-49

(L. A- Glbbs,

Manager

Specialists in

Bank Stocks

The

;

By OTTO C. LORENZ*

'•

■

"American Banker"
"

;

■-»'

rj jk

.//■*■ *•

•*

consumer

would have bankrupt dealers were

successfully

can

depletes

it not for timely consumer
consumer credit controls

general controls

consumer

The

1958

c,,

dead mixing a drink in the kitchen
sink."
7.;

credit terms to rescue sumer credit is surely one of the
overloaded car in¬ greatest gadgets ever invented."
''
7 '
h'.-t; ; > But his ignorance of American be¬

of consumer

inexpe¬

hearing

with

dealers

ventories.

plead for measures they
nothing about. I would as

havior is revealed when he

I will go a

finance

Board's

effective in curbing credit, particularly

are

•

terms."

credit

Dealers

with the problem of overproduction, and
consumer credit study to show

cope

cites recent Federal Reserve

•

Mr. Lorenz denies

credit relaxation.

;

Thursday, January 9,

Board's study we find

Was

hour?

soon

credit control,

and criticizes bankers who believe instalment credit

. .

urges
step further: If some
Americans to ask themselves, "Can
companies and bankers
go to a plumber for my den¬
I
afford
it?
Do
I
need
it?
Have
tal work as to follow the counsel had not approved no-down-pay¬
I earned the right of this
luxury,
of those who wish to re-impose ment, 36-month deals to some ex¬
or must I impatiently possess it
by
Regulation W." Fortunately, the tent, I am positive that automobile
borrowing the savipgs of others?"
great majority of educators, busi¬ dealers >vould have begun to col¬
The key to his behavior lies in the
nessmen,
bankers, labor leaders lapse like a house of cards.':
last sentence of his address: "..,
and others, who expressed their
In
1955
National Automobile
bankers could perform a real serv¬
views in the Federal Reserve
know

cash savings; and contends 1955 automobile overproduction

tired

better,

replace what he terms is our Gold Dollar with a
Work Dollar "based on our capacity to wofk"; refutes argu¬
advanced for re-imposition

automobile
relaxation in

production sparked

rienced men, old enough to know

Author would

ments

level

"high

Financial Chronicle

*. i

This banker has the grace to
Throughout the
recognition say that his remarks may be some¬
what facetious.
He says that a
present at the hearings which pre¬ on the part of seasoned economists
ceded Congress' decision to kill that the mad race produced over¬ modern? society without credit is
production and forced a-relaxation "hardly conceivable? and "con¬
Regulation W in 1952?
after

hour

made

By Consutnei Credit Controls?
Associate Editor,
..
.i
*•*/

that

sis

been? Has he

spent any time on the firing line
where
credit
decisions must be

Can We Control Humanity

...

Where has Dr. Shay

Commercial and

(120)

re¬

ported combined operating profits
of 3.1% of sales for the first six

controls.

months.

credit.

there

Yet

of
selective
consumer
on consumer credit today and tocredit controls constantly dodge—
morrow—adding to the problems for they have no answer. Data
facing our Administration and our are weeks and months behind the
market
legislators -is
place. If
advocates of
selective consumer credit control^
humanity. : 1
•will sit down, right now, and draw
(1) There
are
us a map of the advertising pro¬
those, - in
high positions,
grams for durable goods, buildwho want to
ing supplies and soft goods on the
re-i m p o s e
drawing boards and copy desks of
5
consumer
advertising agencies this minute,
credit con¬
if they will chart for us the protrols. What
) duction schedules — tell us just
are they doing
»what programs will be a "hit or a
to humanity?:
miss"—just where- consumer- de-imand is likely to produce under(2) There
i or over-production and if, on the
are-, others,
also
in high
.! basis of such an elementary business tour, they will tell the Fed¬
positions, who
think con¬
Otto C. Lorenz
eral Reserve Board and, vis just

Association members

study, are vigorously op¬
posed to selective consumer credit
are

ratio

and

legislators

still suffering from 1955 over¬

are

demic

production and oversaturation of
the market.
For 1956 the profit
ratio dropped to 0.8%. It rose to
1.4% for the first quarter this year

authority.

Senator
Democrat
State

Joseph C. O'Mahoney,
in Congress from the

Wyoming,

instalment

credit

that

proposes

controls

vived

antidote to

1.7%

months.

highcost-of-living. ills. Senator Russell
an

and

re¬

our

they

generally and forcefully

reassured - the
American people
By September the profit
that thrift is at least not shameful."
dropped to 2.6%. For

with the prestige of seeming aca¬

•

had

others, uninformed and unac-< the year 1955 it dropped to 1.7 %
quainted with consumer credit, of sales—the lowest reported in
who listen to the siren call of in¬ any full year by NADA since 1949
experienced theorists who speak with one exception—1954. Dealers

key to the forces bearing vocates

ice to the American people if

the

for

But with

first

Six

large invento¬

•

j" Instalment Buyers Save
Of course saving isn't

and you'd walk

shameful
mile to

weary

find an American who thinks it is.
What this banker doesn't realize
that

Americans

practice thrift

when

they buy or borrow on the
instalment plan* He doesn't seem
to know that the vast majority of
American families
ful

in. their

are more care¬

management
than he may be himself. Perhaps
and 1958 models on dealers' floors
Long, Democrat, Louisiana,
his fears for the American family
joins him. They cannot have stud¬ right now, the ratio for year 1957 are fears of himself, fears that he
ied their position thoroughly or' may hit an all-time-low. v::7 *7
might not live up to his instalment
competently.
contract and so have to face the
Would Regi»lat*<"»° Have Helped
If controls are to be exercised
shame: of repossession.
.In 1955? : 7 :
to control inflation, then the
••There may be something else at
Government control of consumer
Board's study amply demonstrates
work on him subconsciously. After
that general controls are an ef¬ credit would not have prevented
the start of the automobile pro¬ all,?he's a banker—he likes to see
fective
weapon
in curbing the •
duction race in 1955, Nor would our. savings pile up in his bank.
growth of credit, particularly con- 4
sumer
credit
such controls have struck at the Then he can sit as a mighty lord
when, where, and in what degree sumer credit. I refer
you to the
is bad because it helps us get consumer credit controls will be:
root of the trouble-—overproduc¬ over our little savings whose ac¬
papers by Shapiro, Meiselman and:
things they think are too good for needed—then we will nominate Jacobs
And by mid-Summer, the cumulated'millions he can lend to
in PART II, Vol. 1, to the tion.
us.:: What are they doing to our them for
momentum and the heat - of the the captains of industry. Perhaps
Overlords of Creation.:
magnificently:,detailed paper by4
hopes and'ambitions—to human- • on Wheels.. We are afraid, how- Eliot J. Swan and other
battle between the giants would • he's afraid: that his pile of our;
officers;
ity's desires for higher standards ever, that we'll- find ourselves: of the
have defied any Government con¬ savings will diminish if we buy on
regional-Federal Reserve:
of living?:
"'7'„;; '• \ ■: rv :saying, like a little friend of ours,.4 Banks in PART
trols. It took a Congressional in¬ the instalment- plan and so lessen
I,
Vol.
2,
and
to.
:
(3) There are those who think "It works all right, but the wheels Supplement III PART I, Vol. 2,. vestigation to stop the very human his opportunities to hobnob with
■
there may be something wrong come off."
* ;'t
As Dr. Chandler asks, preDared by economists of II Fed¬ desire to "lick the other guy at the nabobs.
with a credit and monetary system with reference to durable goods to eral
his qwn game."
Reserve
The desire for
It's our own fault if that's what's
Banks; under
the:
that handcuffs humanity's - will- be controlled: "How do you know
chairmanship of George W. Mitch¬ market supremacy is human, if the matter with him. ..We should
:■
ingness to work. Are they right? which?"
7
7 ■
have sat him down in one of our
ell, Vice-President, Federal Re¬ not humane.
Let's take the first of these great But the hair-raising element of serve Bank of Chicago, for inloan offices and made him learn
/ It would be constructive if Sen¬
areas of human relations—the deRegulation W, which its advocates • telligent, honest,; practical views ators
the
business.
We. should have
O'Mahoney and Long would
aire to control humanity by con- do not and will not recognize, is
regarding the effectiveness of gen¬ keep these factors in mind. Far brought him face to face with the
trolling consumer credit.
the tendency of such regulation to eral credit controls and the very
millions of Americans who use our
from reducing living
costs,, selec¬
"Barron's"
financial
weekly debase the morality and honesty questionable character of selective tive
services—Americans with whom
consumer
credit controls
carried this statement on page 1 of the American people. Regula-1 consumer credit controls.would tend to raise them and cre¬ he is obviously unacquainted. We
of its Sept. 9, 1957, issue in column tion W, each time it was in effect,1
But let us show Senators O'Ma¬
ate unemployment in vitaljndus- should have shown him how the
3:
"After
prolonged
the ipdwced sopiq,Americans to evade honey and Long what may happen tries at
study
critical times. And I urge instalment plan—far from reduc¬
Federal Reserve Board in May the law. And once you undermine if they
persist in their poorlyevery Democrat within reach to ing cash savings—increases them,
decided
against asking for the honesty, you undermine credit in advised views. I continue at the
teaches budgeting and thrift to
write to these two
gentlemen, and
restoration of
risk of being accused of heresy by
Regulation^ W^as..a all its forms,
Americans
who
never
saved a
every Republican to write to Sec¬
permanent weapon in its arsenal.
the
dime before they bought on the
Experienced finance company
automobile-prod uction-minded retary Dulles and Senator
CapeQuestionable at the time, that de- men and bankers know that if se- center of Detroit: What's happen¬
instalment plan. For the informa¬
hart, lest they tag their parties
cision seems more dubious than lective consumer credit controls ing to automobile dealers?
with the label of red rule and eco¬ tion of our banker friend, the Se¬
ever
today. For the Washington are re-imposed, credit in all its
nomic enslavement of the Ameri¬ curities and Exchange Commission
1955's
seers underestimated the public's
Great Auto Race
forms may go the way of the procan people.
Let no legislator fall reports that personal savings are
subsequent rush to borrow. With hibition era, bootlegging and black
Think back to January, 1955.
up $2
billion over the first half
for the siren notes of the inex¬
every passing month, the need for markets.
Remember? We heard rumors of
perienced, lest he, himself, fall at of 1956. Individuals in the United
selective controls over consumer
a
race
between leading automo¬
States saved $3.2 billion in the
jn {j-m Federal Reserve Board's
the polls under the
weight of hon¬
debt has become clearer. Lacking
bile
manufacturers.
It
sounded
stud
pART n
Vol
2
71
estly earned American economic second quarter of 1957, bringing
them
the U S. is trying to fight
Arthm. SmithieSi Harvard Univer-! exciting.
to $9.2 billion the savings in the
privileges.
inflation
with
a
chink
in
its
So we followed production rec¬
first six months of this year.
says that under Regulation W
armor.
ords week after week.
The race
Habit Haunts Us
But there is a moral issue at
"evasion techniques would be per-

ries

models

1957

unsold

still

money

•

....

The

ment
son.

les-

simply doesn't know what
talking about. The Governors
Board

the

Federal

System do know.

serve

ings

1957

Statistics

show

Before
cates

sure

will work.

Board

for

"Barron's"

na¬

"rush to

1956

abnormal

any

make

have

the needs of the

There has been

borrow."

Re-

Outstand¬

credit

consumer

grown with

tion.

ing

his

the

who wrote this state-

man

iust hasnt learned

and

bulge.

writer advo-

measure,

should

that it is practical and
In the Federal Reserve

study

find overwhelm-

evidence

that

won't

the

hairs

writers stand

all

less »
wor(^

states his conviction that selective
credit

consumer

financial

controls

"would

accompanied by avoidance and
evasions so widespread and nu¬

merous

to discredit the regula¬

tion, to subject the regulatory au¬
thority to ridicule and even to
charges of corruption, and to tend
to

shift

business

from

reputable to those with

the

and

tic consciences." Milton

end.

extent that the

largely meaningDr< chandler, in a 5,000paper
in the same study,

University of

work

and that in the train of Regulation
W
come
events
which
should
•make

fected to such

control would be

Chicago,

elas-

Friedman,
on

pages

87, PART

II, Vol. 2, emphasizes that "A major effect of
such measures is always to stimulate the development of techniques
of evading them." Edward C. Sim-

First Motors ahead. Then
Then Motors again. Ford—
Motors
Ford
Motors
until
was

—

dealers

Regulation

„r

Wont

mons, :Duke University, on page
126 of the same volume, states his

Work

On page 31, PART
II, Vol. 2, of
the Board's study we find Lester

Chandler, Princeton University,

asking:

what

type

output

was

the

question which

exist

for

condiblack

lective

Shay,

University

steadfast admirer of

of
se¬

credit controls,
by the emphasis on eva¬
colleagues call
attention,- says "Chandler's com¬
ments
dealt
largely with fears
consumer

seasonal

their

normal

markets

and, under

pressure, were

longer and longer terms to

range

Substandard, so-called, deals
began to appear on the book* of
finance companies and banks.
Bootlegging o f cars and other

pay.

alarming abuses became prevalent
and the uninformed
consumer

blamed it all

credit!

Inexperienced economists and
analysts, seeing the symptoms but
not the disease, yelled for con¬
credit controls

as a

cure-all.

They missed the root of the trou¬
ble
completely — overproduction.
Not until Congress stepped in and
investigated pressure tactics on
late

eves

Mitchell
referred,

^.955, did

begin to

paper
we

open.

which

of
In the

some

have

find that "some foun¬

dation" is found for the hypothe¬

stake
consumer

and

consumers,

atomic age economy, are still
by the ghosts of a past

age—by old
our

nation

tell

normal,

forced to reach toward lower and
lower income
brackets and
ar¬

their

experience."

above

unrelenting factory

dealers

past

well

are

our

haunted

dealer requirements. >

By June, dealers had exhausted

goaded

We, who

credit, to
our

screaming under the
began to hear of

order

—an

sions to which his

unrealized

—

brutal tactics: "Want to
keep your
franchise?—Better sign this order"

sumer

Robert

ad-

*An address by Mr. Lorenz before the
Michigan Consumer Finance Association,
Detroit, Michigan.
j

would

Maine,

'the

vital to the economy?'"

This

tions

necessary

market."

criteria

would the Federal Reserve decide
which

belief that "the

—

were

pressure.

on
„

on.

Ford.

as we

know

do—men inclined

what's too

good for

banker

tional

recently told a
conference: "We are

content to
Nor

men who do not

are

credit

buy

not

washing machine.

content

...

us.
na¬

must

buy it

also

011

"have

machine that plays the 'Blue Dan¬
ube' in

high fidelity and says 'Good
night, dearie,' to the housewife.
We are not
merely content to buy
it on
credit, but the terms must

here:

has

banker

Our

right to judge the needs and wants
of his fellow men by, his own
standards.
ury

What may seem a

to him

may

lux¬

be a necessity

his neighbor and there is very lit¬
tle "keeping up with the Joneses

going
today.

of ours

nation

this

Lacking the services of servants
and chauffeurs our banker may
enjoy,
are

our

housewives

American

entitled to the use of

washing

machines and the enjoyment of a
Hi-Fi set after the housework is

weeks in
this mans
vacation, but our boys
stretch over the hill into the wild and
girls make sensible use 01
blue yonder.
We are not content dreamboats and
super-duper high¬
merely to fill our i need for effec¬ ways that get thorn to the coast
tive and comfortable
transporta¬ of Maine in a few hours—wheie
tion. We must have a
dreamboat. they learn to swim, sail and lis
Then,

too, we must have superduper highways to accommodate
the dreamboats as well as
more
wreckers and ambulances
houses and apartments

our

must have

built-in

bar, even though the
house, the automobile, the kiddiecoop and the last vacation

f°r

themselves

day.
the

•

spirits after

must do the

wouldn't

Two

dream of

three

with the best of them.

be a
but w
are to blame for not uprooting tni
one-side8v pontifical point of view
which still crops up in uninformed
;

This banker is coming* to

exception among bankers,

circles

elsewhere

also.

not

The Joneses nourish

Joneses

are

done.

the Berkshires may be

Judging

Others by

Ourselves.

at Connection
same; and State University, Dr. M. R- Ncife >
be
caught economist and- Vice-President
a

■

wary

Some years

ago,

The Commercial and Financial Chronicle

Number 5706

187

Volume

Management Corp.,
credit clinic
at J the
University's
Secondary
School Teachers Summer Work¬
shop. He drew problem cases out
of his New Britain office, divided
them up among the teachers, five
or six to a group, and asked them
to decide whether they would ap¬
prove oi* reject the loan applica¬
tion on> the basis of the informa¬
tion1 which the branch manager
laid before them. V: % j >')-)>
;

Beneficial
conducted

consumer

the

peasants'
England and

revolt

1381

(121)

law of

supply and demand.

How¬

the

"Bauernkrieg" ever, if we shift to a unit based
of 1525 in Germany were trying on our capacity to work, then the
to tell us way back yonder that Work Dollar may be a more com¬
there

something badly wrong petent
instrument
of exchange
system?. That bondsmen than the Gold Dollar.
y •"»
y,
. ; v

was

with the

entitled to receive full value

were

for the sweat of their brows?

By shifting to a Work Dollar,
we
might find ourselves much
..

Chesapeake &
possibility closer to the satisfaction of our
that the Work Dollar may be more needs—a step nearer to the social
Chesapeake & Ohio Railway
readily adaptable to current needs progress sought by Comte, Spen¬
was
the first major, railroad in
than the Gold Dollar. As our Baby cer, Dewey and Bergson. We may
the nation to report earnings for
Boom of the postwar period de¬ find the Work Dollar concept a
the full year 1957.
It likely will
and "Ich-heit," have one of
I remember the case of a young¬ velops, men and women whose "thing-in-itself,"
the best reports as
wants will grow.in
geometrical which will expand the metaphysics
ster,' : employed,' who ; wanted to
compared with 1956, having
of Kant, Fichte, Hegel and their
buy; a"'used car to go back and progression over the coming years,
reached
new
record highs both
the Boom will also have provided followers.
We may
indeed find
forth to work. His father, a shop
from the standpoint of gross rev¬
superintendent, already owned a
car fully paid for. The son earned
enough to meet the monthly pay¬
ments and the father said he'd
sign the note, too.
» 1 ;f- >'•/. •"<;
After much debate, the teachers
decided they would reject the ap¬
plication. "One car in a family in
such circumstances
is enough,"
they said.
"What did you do?"*
they asked the branch manager.
"I

the loan," he said.
happened?"
loan went sour."

made

•

"What
"The

"Ah, then we were

There

distinct

the

with

these babies

manpower

those wants.

Must
save

serve

until

wait

enough to build

the schools?

They'll be long past
age if we do that.
As our credit system stands today,
we
must tax ourselves, our chil¬
dren, and our children's children
kindergarten;

time?

can

Would

build

year's

Dollars

Work

start a farm?"
A

better?

Work
t

superintendent might
have
difficulty being a

shop

indeed

successful farmer. But we have no

right, as Dr. Neifeld told
teachers, to set ourselves up

the

closer

duce
say

Dollar might help
more

at lower costs.

pro¬

Let

an industrial plant in¬
production per man by
efficient operation. It there¬

that

creases
more

the cost of each unit
it produces. And that's not infla¬

as by lowers

force
of

guiding

-Tear

credit

our

a man more

tors

and

W. J. Roome Partner in

from coal and coke traffic aggre¬

Dominick,
14
Wall Street,

gate $233,000,000 last year against

the New

terms of Work Dollar Wealth. And

that's

not inflation,

either — be¬
them budget their incomes
wisely and well. Beyond that we cause our worker can use fewer
Work
Dollars
to
buy
goods, thus
may not and should not go.
• ,
increasing his savings and adding
Work Is Wealth; Gold Is Illusory to the wealth of the nation.

nounced
h

Stock

aspire.
That's their affair,
and privilege. Our duty is to help
them size up their ability to pay,

dustries

tory served.

that

division

William J.

Roomc, II

cline

change. Mr. Roome has been with
Dominick & Dominick since his

Myers V.-P.
Raffensperger, Hughes

erations.

' !*

we now

nouncement

have. Could

anything ^be * more
unrealistic?
Take a community dependent on
over the past score of years, em¬
boat building for the livelihood
phasis has been shifting toward
for
its citizenry.
The appraiser
Character and
Capacity to pay
appraises the property of the resi¬
and away from the third "C" of
dents and comes up with a Grand
banking—Collateral. The shift is
List and a grander tax rate.
As
eminently practical as evidenced
long as the boat building indus¬
by excellent collection experience
try provides work, the sticks and
—better in many instances than
stones with which
the town is
the collection experience on loans
built have value. But let the boat
where credit approval rests pri¬
builidng' industiy die
or
move
marily on collateral values.
away—then the tax collector can
Then, too, the Keynesian pro¬
whistle for his tax dollars based
posal and practice of deficit fi¬
on Gold Dollars.
How much more
nancing is evidence of something
realistic if the appraisers had ap¬
inadequate or wrong with our old
praised values on the foreseeable
ideas of credit and monetary sys¬
work capacity of the plant and
tems.
Devaluations of currencies
the community!
in Europe and here during our
It may be said in defense of our
lifetime, indicate that we may be
madly trying to squeeze a right present credit and monetary sys¬
foot into a left shoe. And the fact tem that it puts a brake on foolish
It does nothing of the
that we lifted ourselves—finan¬ ventures.
this

concept.

our

bootstraps to make

kind.

car—judg¬
out financial bankruptcy is a hint
has nothing to do
that keeping busy is at least as ment which
important as our hoard of gold with whether money is tight or
start

store or buy a

dent
f

e n

Raf-

sperger,

20 North

Me¬

shared

the

Midwest

Stock

change,

showed

levels,

Merchandise

the

$42,683,596, with cash of $69,000,000 a year earlier.

H.T. Birr Jr. V.-P.
SAN

FRANCISCO, Calif.—H. T.

Birr, Jr. has joined Walston &
Co., Inc., 265 Montgomery Street,
as Vice-President, it has been an¬
nounced. For¬

merly
dent

$170,000,000

with

pared

year

earlier.

was

seeking other

traffic, it has not for¬
gotten soft coal which has been

types

"bread

its

butter"

and

for many

The

years.

expended large sums in the
construction of new coal piers in

has

new

partial operation since August
last year. In addition,* as new
mines
or
fields
are
developed,
of

by G. C. & O. quickly has constructed
Raffen¬ new
spur lines to provide service.

dent of the in-

Robert J. Myers

vestment

banking firm. Mr. Myers has been
associated with the company since
1950 in the capacity of registered

representative. Prior to coming to
Indianapolis Mr. Myers, a gradu¬
Dartmouth

Assistant

College,
the

had

Personnel

Director of

Owens-Corning Fiber¬
glass Corp., Toledo, Ohio.

Chicago Analysis Hold
Annual Midwest Forum

easy

Company,
prominent
the
and

provide

O. has been experimenting

with

service

better

new

haulers

type road-rail freight
place

of the

conven¬

tional pick-a-back movement.
It
has demonstrated the new con¬
vertible

road-rail freight Railvan

Department
which indicated interest in using
for

the

Post

Office

the units on a regular

basis. Each

unit is

equipped with two sets of
wheels, one for rail and the other
for highway use.
Each unit will
cost between $5,000 and $8,000 as
compared with a cost of about $3,500 for a normal trailer with the
same

states
as

carrying capacity. The road
the units could be moved

solid trains at

ings

over

considerable sav¬

Officials of the road stated that

never was

sound

physical and financial condition.
the slowing up in freight

With

carloadings in the final months of
last year,

C. & O. kept costs under

strict control and in view of pre¬
vious

liberal

maintenance

was

He
offi¬

cer

the

Bank of Amer¬
ica

(formerly
Italy)

Bank of
H. T.

Birr, Jr.

from
19 3

served

1924

and

Vice-President of Bank**

america

Company from 1937 until
when he joined First Cali¬
fornia Company.
He was elected
1945

eral

the

He is

1947.

latter

company

director of

sev¬

Western.

corporations,
in¬
cluding Langendorf United Bak¬
eries, Inc., Portland Transit Com¬
pany,

Calor Gas Service, Inc. and

Pacific Ventures.

iO!.,
■fx-

Vance, Sanders

Expands Dealer Service
BOSTON, Mass.—A stepped-up
expansion program
to

national

better service its investment deal¬
ers

has been announced by

Sanders

Street,

one

Vance,
Co., Ill Devonshire
of the nation's leading

underwriters of mutual funds.
districts have

New

Central and

the

been

set

Rocky Moun¬

state

tain

areas, and the Eastern
district, which extends from New
to
Florida, has been bol¬

York

stered by

the addition of two

new

men.

Richard Piatt, a general partner
of the
in

ers

firm, will work with deal¬
Missouri,
Iowa, Kansas,

Oklahoma

and

will

northern

continue

Illinois.

direct

also

the

company's unique and highly

productive seminar program.
John B.

Leonard, who has been
office,
will cover a territory that includes
Colorado, Wyoming, Nebraska,
Utah, Arizona, New Mexico and
connected with the Chicago

northern Texas.

working

out

The

new

men

district

for
both
roadway
and
equipment, the cutbacks in oper¬

Burden

ating expenses did not mean any
deterioration in the condition of

with Hayden,

the property.

paying $1

the

New

York

sota.

Eastern

grams

office, has been transferred to
Chicago, where he will handle
assignments in Illinois, Indiana,
Michigan, Wisconsin and Minne¬

pro¬

Current, the road is

for

years.

David T. Sanders, who has been

piggyback service.

the C. & O.

banking
securities

business

President
While the road is

First

Birr has been

$168,000,000 as com¬

Presi¬
of

California

drop

last

revenues

amounted to

sperger, Presi¬

been

on Sept. 30,
amounted
to
$41,939,193,
with
$66,000,000
in
cash
and
equivalents
as
compared
with

de¬

made

current assets

Net

1957,

this

shipments

While
1956

$8,500,000 bulk materials un¬
ridian Street,
loading pier has been completed
members
of in this district. This
pier had been

CHICAGO, HI.—The Investment
to get.
True, easy money
at Fort Knox. It is time that we
Analysts Society of Chicago will
examine our credit and monetary may blind our judgment, but, if
hold its eighth annual Midwest
systems on the chance we can we clear-headly use our rules of
Character and Capacity to pay, Forum. Subject of the forum will
come up with something better.
be the investment significance of
It was, in essence, a Work Dol¬ then our decision won't be swayed
current metallurgical develop¬
lar which financed our share of by easy money.
ments Forum on Jan. 16, at the
World War II. And it is a Work
Let's try for a better system.
Midland Hotel.
Speakers will be
Dollar which may be screaming In a sense our dollars in our sav¬
Robert M. Parke, General Elec¬
its head off for a hearing in our ings banks and checking accounts
tric; Dr. Frank H. Driggs, Fansteel
present-day world which insists are already Work Dollars. They
Metallurgical
Corporation;
Dr.
on
more
schools, roads, housing represent, in great measure, the
Gunther Mohling, Allegheny Ludand
plant
capacity to produce rewards of work already done.
lum Steel Corporation; and Dr.
consumer goods.
Isn't it possible They reflect the wages we have
Bruce Old, Arthur D. Little Inc.
that we have outgrown the credit earned and, in part, the value of
Tariff is six dollars per person
and monetary system
which we work expended on articles we
inherited from the Medieval and have sold. Not entirely, of course, until January 13, seven dollars
earlier ages?
Isn't it possible that since values also depend on the per person thereafter.

has

Hughes & Co., the Newport News, Va., district.
Incorporated, Recently it was announced that a

ate

ever, it was stated the C; & O.
still looks for a good coal year.

in¬

new

export movement of
the
election
of coal last year is believed to have
Robert J. been at record levels; as far as
Myers
to the C. & O. was concerned. To
.Vice-P r e s i- expedite shipments the railway

In consumer credit

Judgment of a very differ¬
kind
is
needed to
decide
possible
the
work
of winning ent
World War II, that we created an whether we're going to lend a
man
money to drill an oil well,
unprecedented national debt with¬

cially—by

of taxation

As for this business

and valuation

the terri¬

relatively minor in compari¬
son with
the experience of most
of the railroads in this respect.

Robt. J.

capacity and will¬
ingness to work rather than in¬
directly on savings and bullion.
There is a definite trend toward

faced a possible decline
general business activity. How¬

company

been

was

graduation from Yale University
Now let's do a little brainstorm¬
If there's
inflation anywhere,
in 1952, ^
;
ing on our credit and monetary it's rampant in our present system
system:
y
where the price of school build¬
y
As a mental exercise and with a
ings built by a few members of a
grain or two of conviction, may community in less than a year
I offer this proposition to students must be amortized
by substantial
and
doctors //of - philosophy, and fractions of the Gold Dollar in¬
monetary experts: Let's base our come of all the members of the
INDIANAPOLIS, Ind. — An¬
credit and monetary systems di¬
community over one or more gen¬
our

has

attracting

also

from

plants to

merchandise traffic

Ex¬

noth¬

was

is expected to be off
from last and that the

year

The Pere Marquette

expansion.

the New York

Stock

and

an¬

became

coal.

bituminous

successful

time

member

this

1956.
C. & O. has sought to diversify
its traffic in recent years to lessen
its dependence of the movement

York

was

By increasing capacity
per
man,
that
man's
earning
power might also be increased in

generally

$219,000,000 in

City, members
York

stated there

was

ing in 1958 that would disturb the
$1 quarterly dividend rate. Traffic

Of Walslon & Co. Inc.

New

that it

Gross revenues in 1957 reached

$432,300,000, as compared with
William J. Roome, II has been gross of $418,700,000 in 1956 and
admitted to
$380,281,000 in 1951. Chesapeake
& Ohio is the nation's largest soft
general partcoal carrying railroad.
Revenues
nership in
Dominick

Ohio Railway
quarterly. It is interesting to note

in 1955.

Dominick & Dominick

advance report to stock¬

same

rectly

its

holders for 1957, C. & O. reported
net income of $67,600,000, equal

systems

the

and net income.

this old earth

precious than fine gold."

Exchange.

help

divine

the

"I will make

ours.

judges of the standards of living
to
which our American people tion, is it?
may

enues

congratulated each other.
Would
a
Work
Dollar
bring
"Yes," said the manager, "the
loan went sour, but not for the about explosive inflation? It might
reason you gave.
Did any of you —depending on how it is intro¬
guess the superintendent
would duced into our system. But it may
move
his family to Texas and be equally deflationary in that the
teachers

ourselves

monetary
after taxes and charges to $8.36
apart, students and doc¬
a
common share based on 8,088,philosophy and monetary
551 common shares outstanding.
experts,
shake violently before
This compares with a net income
to build a structure which can be
using—and come up with some¬
of $66,700,000, or $8.28 a common
completed in a year or less of our thing better! The key is humanity.
share, based on 8,019,473 shares in
own
working
time.
Ridiculous,
1956 and $57,983,000, or $7.25 a
isn't it? To hit our babies' babies
common share on 7,944,717 shares
with a financial load for some¬

thing

right," the

and

assigned to
are

Norman

David D. Bush.

the
E.
Mr.

was
associated
Miller & Co., Cleve¬
land, while Mr. Bush was con¬
nected
with Jones, Kreeger
&

Burden

formerly

Hewitt, Washington.

and Financial Chronicle

The Commercial
30

Continued from

Thursday, January 9, 1958

See
We It

"As

granted that the once unprecedentedly popular
dent faces the toughest time of his political life. ;
Congress
v

But in

Presi¬

so on and 011—all
can
be manufactured in

petrochemical

plants. This is a particularly
jn
teresting phase and one in
which
Canada is just
beginning. The in
dustry creates products

might enhance the prestige of Con¬
gress, while merely playing politics with them would do harm to the party playing them and to the country.
; *
One of the sins Congress is all too likely to fall into is
that of making enormous appropriations
forfavorite
causes in the apparent thought that merely pouring
out .
money solves problems. This danger wilLrise if and as the ■
threat of a substantial recession increases. Congress as -

somewhat different but real sense, Congress,

ings,. or they can invite political disaster and the igno¬
miny of trifling with vital issues — all depending upon
what they do in the next six months. Temptation will
doubtless be very great to "play politics.,, It would be

well

the President is

now

trial.

Continued

from

must face this winter. Take the number

issue of this

session—defense—for example. There have been many

in
Congress who devoutly wished to argue with the Admin¬
istration about many phases of the armament programs,
but hesitated to challenge the judgment of a general who
is credited with the major role in winning World War II.
But how many of them had or have really defensible
There

and

always have been air power fanatics
in Congress. There have been others who were similarly
enamored of sea power. The army also has its champions,
Bynow doubtless there are lawmakers in Washington
ready to go overboard on missiles and the like. Members
of the armed services have long made it a practice to make
friends and try to influence people on Capitol Hill. What
is known as inter-service rivalry could very well be so
reflected in Congress this year as to be a severe handicap
to all efforts to strengthen ourselves
against possible at¬
tack. Symptoms of such an ailment are already making
their appearance. There are, of course, some very real and
very difficult problems involved in this matter of the
most effective organization of our defense
organization.
Congress would, of course, be well within its rights and
in fact be doing
nothing more than its bounden duty to do
all that it can to help reach and
give effect to the most
desirable type of operational organization. Such a result
will, however, not be attained by any form of political
bickering or any pulling of wires for this favorite or that.
Other problems independent of
organizational matters are
both pressing and difficult. How statesmanlike will Con¬
gress prove it can be in dealing with all these questions?
are

Foreign Aid?
A
matter

Essential

Against that supply picture,
Canada is fortunate to have a po-;

tential market for her gas

is.

closely allied phase of our national effort is the
of foreign aid,
particularly non-military aid. There

in the

stable, market, for

ensure

and therefore we

assured,

ready

supply large quantities for ex¬
port.
The time to begin export

can

servatiye
and

natural. gas.

We need export markets

mature.

for natural resources,

for

good while past. It is now
standing with influential politicians in
Washington. The President is said still to be convinced
a

that

we must continue to
pour out billions in this way. He
may be fighting a losing battle—just at the time wh^n
the Kremlm is plavw the sedulous
ape.
The Chronicle
has never been enthusiastic about
this light hearted gen¬

erosity—and is not now—as a general practice. Our na¬
tional policy in this matter
is, however, not one that
should be formulated
or

partisan advantage.

the basis of

It is

real

gress assumes when it undertakes to

that Con¬
make changes in the

Administration's foreign aid
program
should be so regarded.
•
And

political sentiment

rel^onsibility
—

and the matter

iron

and

for

and

ore,

will bedevil Congress

well

the President

during the
next half-year. Federal aid to education, involving as it

does

the

matter

trving to

encourage

studv

•" .• V; \

Future

Now, let us turn briefly to Can¬
ada's pipeline program.' The first
attempt in North America to pipe
gas for domestic use was in 1825
with hollow wooden logs. History

Impact

What has been the impact so
far
of natural gas on the
economy of
Canada? What will be its
effect in
.

the^utpre?^ Well,-past

experience

us that this early attempt ah can only give an
approximation of
transmission was frustrating' future impact —and past experi¬
because the gas leaked out oi-'the ence; expressed in
any terms, must

tells
gas

be multiplied

fire to the pipe.

time

transmission

the

been feasible.

"■

•

equiva¬

Many thousand people are now
employed directly in natural gas,
but .employment in its
Search, pro¬
duction, processing .transmission
and. distribution, will assuredly,
go
well as for those' industries

has-

gas

by several times, to

get even a conservative
lent of the potential,

up, as

that

use

it.

;

Science and

•

technology already

have turned up some 25,000 indus¬
trial applications for natural
gas.
Iir the; U. S.i, as an example of the

trend, about 75 % of the

new pet¬
rochemical plants built since the

British

Columbia

Alberta

and

and-other, parts

Natural gas

ada's domestic needs.
is

different from anything else.this in mind: much of,

bear

And

this

chemical

ern

C. to

Vancouver

energy

remain

will

longer

dormant

serves

until

useful

pur¬

time

and

expected

being studied
Regina, Brandon,
Portage la Prairie, Winnipeg, Ke-

present

petro¬

from natural
industries have been
are

—for Bed Deer,

the

and

establish

industry

.New

;

announced—or.

northeast-f

line from

gas.

border; Ti-ansrCanada is
discovered in the fu-. moving, gas into Winnipeg at the.

ture
no

completed

I^O^air^dy.

Edmonton the nucleus of

."*

too—in

products,

and Port

nora

Arthur

result

of its

coming •availability.' Obvi¬
ously, the larger the market for

reach Fort William

by the end of natural
gas, the greater our bene¬
When the line is com¬ fits will
be from the petrochemi¬
In addition to the fact of energy pleted to Montreal by the end of cal
industry. And natural gas is
lying idle, is the effect that the 1958, the Trans-Canada line wilL
widely used by technical process¬
lack of export will have on explo-. be; the • longest
pipeline in the
ing industries,, such as iood, metal,
ration programs now under way world,
capable of transporting
chemical and glass-making..
,
more than

pose.

■

;•

this year.

Western

Canada.

Unless

necessary for many companies to
cut back their operations severely
until

economic atmosphere

a more

700

ade¬

quate export markets are forth¬
coming without delay, it will be

day.

per

•

making it

million cubic

feet

Internationally, natural

'»

I11

record year.

This fig¬

ure

Canadian operators have gone
through many years of developing
gas
reserves
without markets.

Trunk arid the major transmissioh
systems.

They must

soon begin to sell this.
order
to keep
alive.

reserve

Just

grain,

the

farmer

must

sell

his

must the oil producer sell

simple

Some people

gas—

that!

mistakenly believe

that since gas is found while look¬

Plans

another

available for gas.

illustrate

this, let us assume that
Producer A and Producer B both
have identical holdings. On these
holdings they have spent exactly
the

amount

same

money—-for

geology, seismic work, and ex¬
ploratory drilling. Producer A has
found

ten

oil

discoveries

his

land; Producer B, five oil and five
gas discoveries. Let us assume that
all the oil discoveries

tical:

Producer

were

then

iden¬

receives

Producer B,
if the latter is not able to sell his
as

But eacVt producer has spent

gas.

the

revenue

same

amount of money on

ploration; and in the future,

ex¬

sur¬

face and lease rentals will be the

science, agriculture and its claims for subsides and the

same

discovery.

regardless

the

type

bo'h

natural

gas

and

essential to the producer!

oil

gas

already

an-,

of.

would

Cali¬

established

day is

of the markets

Plants

In order to make salable
gas
available from wet gas fields and
solution gas, multi-million

dollar

plants

sulphur,

ral

being

constructed

planned. Tremendous volumes

are

prooane.

gasoline

and

produced

butane, natu¬

condensate

will

these gasoline

plants.
Here

some

indication of the

196t)

Propane

(bbls.

1970

daily) 11.800

33,400

10,i no
Gasoline & Condensate
23,100
Sulphur
..(tons daily)
2,100

28 500

Butane

Natl.

the

1956, Tor instance,-the monthly

reduction; of course, Ave can add
the positive assistance to the trade

balance, which would be effected
export:-the value of planned

Westcoast Transmission and
Trans-Canada export to the U. S.
would

be -about

million a

$3.6

month by 1969.
The

both

policy

the

government

provincial

levels lias been to

and Federal
Canadian

serve

first—and.rightly so-absolutely safe margin of
reserves and proper laws and reg¬
ulations for governing pipe lines
consumers

with

and

export

then

gas—and

natural

The export
aspect of natural gas with its eco¬
nomic benefits to Canada is im¬
permit

export.

should bo
Indeed,it
importance to the

mensely promising and

pursued with diligence.
is

extreme

explorer, who intends to continue
is

products which would
accompany
the sale of gas for
export as weil
as Canadian
needs:

;

cu¬

sample

that Canadian gas

capture—if quick action

sure

many

products

natural gas.

I, therefore, repeat that the sale

recently

construction

Canadian

The

liability unless

been

the

pipeline, which

transport
fornia.

could

are

for

market for 400-to-500 million
bic feet of gas per

taken.

markets

have

nounced

the operator.

actually become

will

average of imported coal was over
$12.3 million. And to any import

includes field gathering, pro¬
vincial gathering such as Alberta

ing for oil, that gas is

a bonus to
In fact, gas reserves

gas

\;*
favorably affect .Canada's trade
The total of natural gas pipeline
'balance, for in many areas it will
construction during 1957 has been
be: able to replace imported coal.
reported to be over 4,300 miles,

exists.

like, proposed labor legislation, civil rights, ar»d a number
of oth°r ouesfions upon which
Congress will bQ called
upon to act, will one and all require attention and deci-

become.

'v'VPipelines

;

fact, for
Despite the difficulty, Westcoast
everything that is surplus to Can¬ Gas Transmission' Pipeline has„
tured

twice the

it will be with the other maior issues which

the U.: S.
pulp
manufac-/ Canada.- r

such

very influential quarters
at a low point in

now

would be at

markets, Canada's arrangements precede the move¬ 3Ybr haye.:been,
designed to use .it
ments of gas from the provinces
industry will never
as the raw material.
! : "

production, both oil and

as a

between

of 1961

without export

it's

aid

estimate

end

country's gas industry in 25
years before,! 1980,contingent, of
course,.on how large our markets

his

The fact is though that foreign
national policy has been
losing popularity in some

the

estimated
—a
con<;

•the

Although the Canadian gas in¬
dustry in recent years has not been
Let us recognize realistically the concerned with such problems of
implications of anything less than physical transmission,, other frus¬
trations have presented them¬
a
proper export program; let us
recognize clearly the - dangers of selves.;. Long negotiations i'01*
postponement. , In my judgment, export permits and financing

is right now!

view, from all

appearances.

serve an

1Ik: million '.customers

steady return for that part of Can¬

those who in the past at least have
thought that all
critical areas and doubtful
peoples could be won over by
astronomical amounts of largesse. Some are still of that
are

"set

and ready to

logs, often exploding and setting
In addition, the
ada's
petroleum investment and gas would not flow down hill since
activity. Everyone will agree that - it was lighter • than air and,- of;
Canadian needs must first be met- course,, no pressure could be put
before export can be considered. on wooden.logs.r Iron pipe was in-;
But Canada's requirements are al¬ troduced in 1872, and since that
will

captured

once

programs

alternatives to offer?

Enough: Export

than

one

Thinking in term's of the capital
bringing the total nation's oas
project to completion—that is

page

1980 rate!

the

the part of
any individual, group or political party would be tanta¬
mount to political suicide—as some of the more astute
leaders are said to feel. It would certainly not be a serv¬
ice to the nation. Temptation will arise, though, in many
if not all cf the major issues that Congress and the nation
course

Royal Com
mission on Canada's
Economic
Prospects: reported that as
much
as $25 billion
may, be invested

of Canada for another 40 years at

quences.
a

industry

for

Canada's* Natural Gas Picture

hope that such

addition to

a new

Investment

;

and

the Gross

least $1billion. The

to condemn and to offer nothing of constructive
value—and thus "play safe." Temptation will also be great

We should

easy

put together grandiose programs, call them "bold," and
appeal to the rank and file for support on that basis—
without ever giving very serious thought to the conse¬

increasing

Product,

the many jobs that
creates.
•
—

by! Canadians

consumed

National

Individual members,

and political parties, we
are confident, can make definite contributions to the wel¬
fare of the nation and also enhance their political stand¬
should most certainly hope,

needed

and

would aid in

about such matters

Trial, Too

too, faces a most difficult session.
we

plastics and

political partisanship or hope
be heartening indeed if there
were
good reason to hope for really constructive steps
on
such issues as these, at either end of Pennsylvania
Avenue. This, however, does not seem to be in prospect,
but sensible action within the limits of current notions

sions not based upon mere
of political gain. It would

first page

for

(122)

octane

are

gasoline,

6^740

aware

derived
.

70 200

from

operations
such

that

Canada
which

practice in the past, arid
it

vital

the

Conclusion

conclusion. -1

scale

been a

therefore,
place 01

future

natural gas in Canada's

has

economy-

think,

fatf

summary
of this
newcomer in
Canada's energy picture would b
this: natural ga« reserves are be¬

raw

ma¬

terial for «vnt*>etio
rubber, evnlosives, synthetic yarn,

fertilizer,

ing developed effectively and wi
remiire huge srumj h*r the nex
decade and beyond, they

will on

iiA

Number 5706

187

Volume

The Commercial and Financial Chronicle

ply

oprnent : and will lend economic
strength and unification to the na¬

The Soviet Threat to pa

convinced that ratural
gas> will be .an iuportnnt -future
energy reservoir; speeding industriafization#; and will ccnfirm the
Independence
a vast "country
with a relatively small population,,
which values its national iden¬
tity, even thougn.:. i t:,«rUves beside
an economies giant.
It can be of
even greater significance to Can¬
ada's economy if we face Hit situ¬
ation' as- it exists',"', and begin to
I am

tion.

American Business, Inc.

•

sian

all

a i

Here

market

dollar

circles
"How

l'or-

will

is:

girl's
Soss

Wilma

deposits

had

been

Republic in Northern
Siberia. A year later in the An¬
nual Report on the Diamond In¬
dustry by Dr. George Switzer of
the
Smithsonian
Institution, he

Autonomous

Thomas A. Scoit With

George A. Bailey Go.
Scott

has

?•;,

;

•

associated

become

•

with

Manager of

Rela¬

Dealer

tions

the

distribution of

Sovereign In¬
Inc.

vestors,
Mr.

Scott

been

actively

Scott

Soviet

"The

;

industrially

Soviet

the

to provide
foreign

with

the Reds will not attempt
them, but will trade

to hope

undersell

for

About 98% of

the

well

This has led diamond producers

and sales pro¬

funds

com¬

currency."

distribution

past twenty years and formerly
managed the Mutual Funds Dept.
of Bache & Co. in Philadelphia.

Hayden Stone Opens
Branch
GLENS FALLS, N.
&

office

has

Co.
292

Y.—Hayden,

opend a branch

Glen

Street,, under
the management of John L. Nolan,
with

Miles. Nolan

assistant

manager. Mr. Nolan was formerly
President of John L. Nolan & Co.,

Inc.

prices they can get.
the world's produc¬
tion of diamonds still comes from
Africa and about 2% from South
best

the

America.
demand

diamond

claim.

million

didn't

know

production

amounted to

ing

said:

of it!"

murmur

world
year

Two Hent^ Branches
Hentr

branch

has

Co.

office

onened

Wall

West

114

Street, MidTard, Texas, under the
management' o" HoFis A. Smith,
and

215

W^st

Fourth

last

record break¬

the

And

carats.

rica

mine

amount.

for diamonds

mand

—

can

only about 4% of that
Furthermore, world de¬

produce

Premier

the

—

today is said

greater than world supply.
So, I am told, a few diamond
mines in Siberia
or
reworking
—

old, mines

India

came

(where
from) won't

necessarily make much of

local

manps«r

Mr.

Favor was

Arthur

for

Krensky & Cm. Inc.

pock-

stockpiled
diamonds,
"to ke^n the
mines
going," they say. They also kept
conditions

until

market
favorable

the

were

to sell them.

platinum when Soviet
platinum
on
the
The
price
dropped!

the price of

Russia

put

are

that

wondering:

now

happen

diamonds,

too?

forrrm^

offices
atJ
York City.

Feb.

with

New
^H. Peters will
""roadway,

be general r>p~+r>or and Harriet G.

Peters limited ^rtner.
is

Co.

partner
which

""^te^s

viR

Mr. Peters

Jakobson &

dissolve

Jan. 31.

sound like good news, if
diamonds and platinum were to
It may

cheaper

become

people

them. But 30 million
carats of gem diamonds are be¬
lieved to be owned by the public
in the United States alone. That

could

buy

*Transcript
broadcast

WRCA
Dec.

16,

of ja

over

N""

1957.

NBC

York

talk

Mrs.

Soss

radio's "Nig-htline,"
and NBC Network,

for

families

found

first!

the

planets

that

moon

Soviet

other

Russia

may

claim, if the Reds get there
Diamond people say that

doesn't worry them but in a space
age

their thinking
change drastically.

economy

have to

may

without

collateral, it

Here's Why:
You

with whom he has been associated

since 1956, it has been announced.
Prior to joining the firm he was
with
He

only

College.

Electric

that

diamonds

announced

turning
in

vance

(The

out

ages

than

the

third

recently

aver¬

Stock

Ex¬

change.
Remembering how Oriental

value, when
cultured pearls were developed—
women
are
asking: "Will syn¬
pearls

dropped

thetic

diamonds

affect

the

have

value

similar

Dr.

dent and

our

told

only

with

principally
finding of manufacturing
companies for sale and the negotiating for their purchase. Since
the

1946 the firm has purchased 18
manufacturing companies for in¬

vestment, not for resale.

D. L. Goff Opens
RAPID CITY, S. Dak.—Dale L.

conducting

Goff

securities

business from offices at 2711 Elm
Avenue.

get

go.

not

whether

knows

will

market

(fjfatCre feeling

very

web

the

change

changing world. If dia¬
are not being worn, your
money is tied up
in something
that may not appreciate in value
and doesn't yield interest. Unless
you can get dividends in pleasure
from your diamonds, it would be
a good New Year's Resolution to
a

monds

exchange

them

for

some

Since

—

monds sold

retail

the

1945

price of
relatively

been
most

the

dia¬

feeling queertg)

"top quality'' aren'.t
more!
"Top Qual¬

so
"top" any
ity" may mean different qualities

different

stores.

here

pocketbook tip: You

likely to
get a better quality stone and a
smaller mark up
in a jewelry
store that depends on repeat busi¬
ness from serving
generations of
are

They

you

are

Business

to
in
a

really

The Better

rare.

Bureau

Gem

can

of anyone who tries
"blue white stone."

wary

sell

and

the

Ameri¬

Society forbid members

the expression "blue white"

use

describing diamonds.
"good white stone."
More

owned

rings

engagement
than

other

any

fjtfWsUving you want most]

Ask for

are

form

diamond—70 to 80% all American
women

sell

are

said to have

one.

diamonds, is to sell sentiment.

And

have

intrinsic

that

mond

hunch

value

that

within

can

your

never

the

dia¬

taken

Incidently, the newest in

away.

diamond

cuts

the

."heart

shaped" diamond!

Four With H. Hentz
(Special to The Financial Chronicle)

CHICAGO, 111.—Joseph B. Annenberg, Jack H. Musliner, Harold
E.

Sodekoff and

have

become

Hentz

Boulevard.
with

Arthur

Robert G. Weiss

connected

Co.,

with

West Jackson
were
previously

141

All

(have a checkup yearly \
f

Krensky &

Many

in Schnectady.
small dia¬

very

monds, suitable for industrial use
can
be made at the present time.
And you know—-(in case of war
it is vital to have a source of sup¬

A T L A N T A, Ga.

Ralph M.
Bewell, Leila S. Fortune, Edward
G. Holloway, Dennis L. Meekin
and

come
ern

Joseph

affiliated

time.

That's why

thorough checkup, including

With First Southern

straight

it's important for you to have

Co.,

Inc.

be cured if

cancers can

detected

real

Guy Suits, Vice-Presi¬
Director, of the General

Electric laboratory

years.

Harvard

may be more
pledge loan.

know where

you

Nobody

diamonds?"
For that answer I went

best place

diamond

synthetic
quanti¬
dropped

industrial

London

for

Ohrstrom & Co. relate

pledge
loan is from a pawnbroking insti¬
tutional in your state that is semicharitable.)

commercial

The De Beers stock

Co.

have to pay interest
year and you do not

may

once

the Rus¬

market reaction came when Gen¬

eral

Oil

graduate
His duties

families.

the

that

ing the interest taken out in ad¬

And

Shell
is

have to discount the loan by hav¬

Stock Market Reaction

diamonds.

col¬

need

but

also

become

loans, and dia¬
monds make a good pledge. Then
in good times the jewelry can be
recovered.
Even if you can get
a
personal
loair from
a
bank

stable

deposits have been found
in meteors so they do come from
outerspace too.
Nobody knows
how many diamond mines may be

has

small

diamond

happened recently to

Some'

lateral

has

ties.

The Platinum Precedent
But what

Could

H. °*ters Co.

off

diamonds

the

them!

diamonds

For world reaction to

groups

it may be better to
diamonds than to sell

your

Orr

Decker

partner of G. L. Ohrstrom & Co.,
40 Wall Street, New York
City

But, diamonds are formed in
the throats of old volcanoes. And

and
separating sian claim of a major diamond
gravel and rock is strike in
Siberia, let's look at the
a relatively simple mining opera¬
stock market in London and Jo¬
tion. Labor, both in South Africa
hannesburg.
International stock
and Siberia is cheap. So, if the brokers
say, with the
first an¬
DE BEERS' empire no longer can
nouncement
of
the Soviet
dia¬
control the major part of world
mond discovery about two and a
supply will it be able to regulate half years ago, the price of the
or keep up the price of diamonds?
stock of the De Beers Consoli¬
The price level of diamonds is
dated
Mines
began to
decline.
set
by
the
Diamond
Trading The stock, they say, continued to
Company in London and South
drop when the first report came
Africa.
For
five years, starting
out
that
General
Electric had
with
the
Depression,
the
DE found a
way to make synthetic

market?

D. H. Peters & Co., members of
the New v0t*v Ftock Fxchange,
will

governments

productive form of investment.

Mining diamonds may
costly but not extraor¬

Jewelers

Form D

unstable

etbook dent.

Digging

Street,

Odessa, Texas, under the direction
of John C. Favor.

Actually

largest single mine in South Af¬

dinary machinery.

BEERS

G. L. Obrstrom & Go.
T.

saved

prospects?

diamonds from

Stone

high mark
have paid if you
time. Few retailers

convenient to get a

program.

diamonds first

world monop¬

Union

tual

say¬

oly. Soviet diamonds will be used

engaged in the

during

Russia.
a

the

dicovery

maintained

have

of
of

with the famous South
deposits which until now

parable
African

has

motion of mu¬
A.

Underground Resources"
ing:

George

Bailey

Co., Land Ti¬
tle Building,

Thomas

quoted
the
Soviet Minister
Geology and for "Protection

Pa.—Thomas

PHILADELPHIA,

pocketwho are

you

William

asked

hear

Yakutsk

the

discovered

from

Why:

diamond

the

are

the

affect

most

Randolph
Hearst, Jr. who has just returned

In 1955 Soviet Russia announced

that

people

many

stantiation of the Russian

long

Here's

tion from 1936 to 1938.

tax.

pay

with

spokesman
for
De
Beers
that there has been no sub¬

says

best friend?"

Byllesby
and Company Incorporated for 38
years.
He was President of the
National Security Traders Associa¬

acquiring

could
of

What

diamonds

remain

with

H. M.

sales

the

it. And wholesalers usu¬
only about 40 to 45% of
the retail price. Even in countries

them as a; form of
savings. So you can see that any
basic
change
in
the
diamond

it-is! ''
multi-

diamond

as so-

ciatecl

the

recover
recover

may

bought it
ally

v-;

symbol of sentiment,

the

was

can't

will buy

While diamonds have become

international

merly

can't

You

hock

listening to this

you

up-you

tained.V

being asked in

•

of^, their diamonds will be main-.

If you need to sell a diamond;
•

look ; upon

billion

department.He

books

yourself that
is an invest¬

families
who
have
jewels for generations have
billion dollars in assets. These are had to part with them for food or
trustingly held: by : millions
of very little money from unscru¬
Americans who believe the value pulous buyers.

question

them

use

delude

stone.

would be between six and seven

Farrell

charge
r

you

pbcketbook tip, affect¬

the

o ver

The

Secretary.?;

will

bring

one,

••world.;

Exchan ge,
Mr.

economic

ing engaged
■:
girls and mar- \ried... women r

Midwest'Stock

Sensational

fthe

threat

and'that- T; would

"associated .with

merii-'

bets

New Partner of

ex¬

economies,

Last-"weekv I said the real Rus¬

135' So. f

Street,

existing companies.; - Warns ' against
diamonds for "Investment.":

■:

Nulty & Com¬
L

little

buying a diamond
ment, unless it is an exceptional
Here's Why:

as well as for foreign currency idditioiisy reports
iirediicer* hope fdr< RussiaVabstinence- from underselling. * Alleges possibility of hewsuppliestocomefrom moon
and-otherspaceareas.DiscusseeseffetfsofGeneraL Elec trie's
i.development of the synthetic diamond,with stock market
•

don't

But

depasit discoveries in Siberia and of her intentions

effects

CHlCAdd;:ill.^AHhurjEr Far¬

pany,

that

the enemy).

of manufacturing dia¬
of gem size and quality.
fact," Dr. Suits said, "I have
just bought a REAL diamond for
my wife."

gfIndustrially

McNulty Go.

rell. has' become
James J. Mc-

v>.''

•cWomaii: economist noting Soviet's announcement of diamond

Arthar E. Farrell With
1

diamonds

seems

"In

By WILMA SOSS* '

••

James J.

off

cut

monds

President, Federation of Women Shareholders in

.£■ t

in the future.

there

pectation

|stspo\yond^hib^ ^Jitc^tmue
to increase

industrial

can't
But

The Diamond Maiket

1 $

■

(123)

—

chest x-ray for men and

pelvic examination for

women,

each

year

...

and every

matter how

well you may feel.

Tulkoff have be¬
with

Corpo^+'on,

Street, Northeast.

First South¬

652

Peachtree

55
-

AMERICAN CANCER SOCIETY

The Commercial

Continued from

rate

discount

fact
the

The

rates.

interest

the

that

1953-54, would be
a
decline in open

rate,
as
signalled

the discount

reduction

market

was

the

borrowings in
term credit markets.
and

authorities wished to

demonstrate

unmistakably their constant watch
long- over business developments, and

loans,

in some

apprehensions existing marked up their quotations. ' > ,
Obviously, the key to the future
quarters that the Federal

supply
in recent months has been below
the
usual, seasonal
proportions.

Reserve

would

Because

the

■

trend

V :

increase in the money

the

continue

press

course

the

portent for the future.

prompted the Federal Reserve au¬
thorities to act. as they did, or to
factors .involved
decision.
It is entirely

their

the

weight

ap¬

however, to consider
financial back¬

propriate,

the economic and

ground of recent credit develop¬
and

ments

• ■

whatever

draw

conclusions appear reasonable re-

garding the outlook. V
Changing

Economy

•

credit

changed
downdrift

the

situation

in
slackening

business activity

months.

Some

in the boom had become apparent

earlier in

industrial

1957; indeed, aggregate
activity had reached a

peak in December, 1956, and had
remained substantially on a pla¬
teau for most of the year.
Busi¬
ness
confidence
remained
high
actually
gathered strength
through the middle of the year;

and

industrial

and

businesmen

many

economists looked to a renewal of

in
the
direction
economy is not universally
downward; except
for textiles,
most producers of soft goods have
been
doing well, housing starts
seem
to have firmed a bit, and
defense orders
are
expected to
economic

the

autumn.

uptrend

Even today, the

of the

turn up

again in the near future.

Nevertheless,
some

been

deterioration in general busi¬
in very

ness

has

there

Such

recent weeks.

economic bellwethers

steel out¬

put, freight caiioadings and retail
sales have been weak; automobile
have

sales

failed

show

the

vigor for which the industry had
hoped; industrial production gave
ground in October and may show
another small
ber.

decline in Novem¬

Finally, it has become evi¬
that
business
outlays
on

dent

the
of

and that

further sag Reserve
ahead.

favorable

off

was

outlets

lenders

very

because

shortage
prompted

liberalize
especially on

of interest

rates

1953-54

The Federal Reserve provided
serves on a liberal basis and
enabled
make

re¬

this
commercial banks to
additions in 1954 to

the

large
holdings. of

their

Treasury and
municipal
obligations and real
estate.mortgages, thus adding bank
credit to the supply of long-term
funds
flowing into • the capital
markets.

]

•

questionable

•

;

whether the;

change in investor psychology

credit policy may be as significant
in the next few months as it was
in the earlier
of

the

most

period.

In the

institutional

case

investors,

liquidity has declined materially
since 1953-54, while forward com¬
mitments

appear to be somewhat
larger today than when business

slackened

the

Undoubtedly,

the

former

period.

prospect of a
lessening in business demands for

the

for

environment

eased

estate

cline

price

policy, the Treasury was
And as the accumulation of evi¬ engaged in setting the terms of a bond market.
This coinci¬
dence shifted from one side to the financing operation.
Demands
of
other
long-term
dence of timing has led to
the
other, credit policy, it appears, has
borrowers, however, will almost
shifted to a relaxation of the re¬ surmise that the Federal Reserve
certainly increase in 1958. This is
straint that prevailed when the decided upon the shift in credit true of state and local
govern¬
policy
in
order
to
provide
a
more
economy stood at the crossroads.
ments, the more so as an improve¬

in economic activity may be

major

mortgages, and to bid
aggressively for new issues. Credit
policy also contributed to the de¬

plant

liabilities in

short-term

drastio

borrowers
were
1953, but interest

eventual

investment

real

equipment

their

to W

for instance, long
demands by

their lending terms

deciding upon a shift 1958, and others may seek to fund

was

in credit

fear

institutional

is backing away
from its peak; inventories are no
longer being built up and could
well be cut back significantly in
the months ahead. Thus, business
demands for bank loans are likely
to continue easier.
Business de¬
have the maximum psychological mands. for long-term
funds are
rapid credit expansion, at least
impact upon the money market also expected to decline in the
for the time being.
Instead, the
and yet permit great flexibility to aggregate
despite the -fact that
evidence
now
suggests that in¬
shape credit policy in the light of some borrowers, especially the
flationary pressures, by and large;
economic developments.,
public utilities, win continue to
have weakened, that the danger
At the very time the Federal absorb large amounts of funds in
of excessive credit expansion has
subsided,

interest rates.

nonetheless

rates

factor

decisive

The

recent

Complexion of the

pears. tp have ended.
The.
rise has abated; spending on

market*

seem

credit, sharply. In part, this

of the demands for

rapid upsurge in financing
requirements by business, which
was so prominent a factor in the
tightening of credit and the rise
and in interest rates since 1955, ap¬

and

yields. In 1954,
term financing
categories
of
larger than in

The

gaining attention at home
abroad.
Also, the authorities ap¬
business, : prices and credit pre¬
parently did not warit to flood the
sumably have all contributed to
market with reserves at that time,
the recent shift in credit policy..
and
this consideration / operated
Sometime, in recent,-weeks, the
against a reduction in reserve ref
weight of evidence seems to have
quirements in mid-November. In
tipped the scales against the pros¬
other words, the Federal Reserve
pect of another outburst, of infla¬ selected
a
reduction in the dis¬
tion, a resumption of the invest?
count rate as a device that' would
ment boom, and a continuation of

credit

Obviously, these demand ;and
supply factors are not:.! the sole
determinants of interest
rates and

tight credit without regard for credit policy and interest rates is
the softening in the general eco¬ to be found in business and eco¬
nomic
situation.
Open
market nomic trends in the months ahead.

various developments in

{. These

long-term

decline

for

in 1957.

pace

Obviously, it would be pre¬
sumptuous as well as futile to at¬
tempt to interpret the motives that

the

Thursday, January 9, 1953

not, in itself,
tify the expectation

assuage

to move not only magnified
impact of the credit policy The liquidation of Governments
ag¬
shift on market conditions but also by commercial banks, which was purchases, even if pursued
raised numerous questions regard¬ undertaken on a substantial scale gressively and on a large scale,
would
have
been
less
effective
ing the implications of this step in 1955 and 1956, continued at a
than a discount rate change in
slower

first

;•«

...

would

especially since a statement made
by a Federal Reserve official be¬
fore
a
Congressional committee
was interpreted as presaging addi¬
tional steps to
ease
the money
market. In this environment, in¬
vestors naturally rushed
to put
their funds to work and dealers

precedent.
One reason, possibly, was that a
dramatic step was considered ap¬
propriate in the light of existing
conditions. Presumably the credit

In the Credit Market
that

toward easier credit and lower
widespread speculation regarding
the reasons for tins conspicuous interest rates in the months ahead,

first page

departure from earlier

and Financial Chronicle

(124)

ment in bond markets will call long-term funds will have an ef¬
Treasury's borrowings. Obviously, forth a number of new issues that
fect upon the thinking of institu¬
In view of the substantial change opinions must be conjectural but
had been postponed as long
as tional investment officers.
How¬
in the outlook, therefore, the real it seems most improbable that the
conditions remained
unfavorable ever, many
investment officers
surprise to the financial com¬ Federal Reserve took its action to borrowers.
Also, most forecasts have. vividly in mind their ex¬
munity was not that credit re¬ for the specific purpose of facili¬ envisage private construction in
periences in 1956 and 1957 when
straint was relaxed but that the tating
Treasury
borrowings
at 1958 at about as
high a level as they had to forego attractive in¬
first step was the lowering of the easier terms. Rather, the decision
in the current year, and this will vestment opportunities because of
discount
rate.
This
action,
as to relax credit policy was almost entail
large financing demands. the overhang of low-yield com¬
noted, contrasted sharply with the certainly made on the basis of an
Multi-family residential building mitments
undertaken
in
1954,
appraisal
of
economic
develop¬
procedure employed in the busi¬
has been firming in recent months, when
interest
rates
were
very
and would, in all likeli¬
ness correction of 1953-54,. hither¬ ments
and
many
competent observers low. Thus their reaction may not
to regarded as setting a pattern hood,
have been made even in
believe that the construction of be as
vigorous as it was some four
for policy decisions when the next the absence of any large Treasury
single-family dwellings, too, will years ago. As regards credit pol¬
business decline materialized.
financing operation. At the same
show some increase once lending icy,
here
too
Fhere are good
When credit policy shifted gears time, it is fair to conjecture that- terms are
relaxed, with an ac¬ grounds (for assuming that the
the imminence of the Treasury's
in 1953, the first step, in May, was
companying rise in requirements Federal Reserve will not ease
new
financing may have been a
a stepping up in Federal Reserve
for mortgage money.
Thus, any credit as aggressively as in the
contributing factor to the decision
open market purchases; this en¬
decline in coroprate new issues earlier
period, unless the business
to use the discount rate, rather
abled the commercial
banks
to
is likely to be offset in substantial decline assumes
greater propor¬
than open market operations, as
pay off their borrowings at the
part by a higher volume of bor¬ tions than
is
envisaged at the
the
instrument for signalling
a
Federal Reserve banks, eased the
rowing by states and municipali¬ present time.
strain on reserve positions, and shift in credit policy.
ties and by real estate.
improved
the
liquidity of the
Considerations of Credit Policy
Implications for the Credit
Finally, Treasury operations
commercial banks. The next step,
Markets
The reduction in the discount
may
become
more
important in
effective in July, 1953, was a re¬
The market reaction to the low¬ the bond market, since the Treas¬ rate has been followed by open
duction in reserve requirements.
operations
which have
It was not until February, 1954, ering of the discount rate was ury will need to take advantage market
both prompt and vigorous. Prac¬ cf any relaxation in credit con¬ eased
the
pressure
on
member
some nine months after the change
This is indicated
in policy, that the discount rate tically every class of market rate ditions to step up its offerings of bank reserves.

Reducing the Discount Rate

plant and equipment, which for
declined
and in some
instances
the past two years had been a was reduced from 2 to
1%%; by
solid mainstay of the boom, were then, member bank borrowings these adjustments were among the
not only peaking
off but were had dropped from the $1.6 billion sharpest experienced in the credit
markets for many years.
headed downward.
Yields
reached at the start of 1953 to a
The
price
picture,
too,
has fairly negligible $200-300 million, on Treasury obligations of all ma¬
turities
dropped rapidly and prices
changed. The upsurge of prices, and excess reserves were higher
were
marked up correspondingly
under way since mid-1955, began than
borrowings
by
a
goodly

intermediate-

and

long-term

se¬

curities if the progressive shorten¬

by the fact that member bank
borrowings in the second half of

ing of the debt is to be checked. November averaged around $750
A further sag in business and in million and the net deficiency in

credit

demands

reserves
averaged
around $250
million, in both instances consid¬
1954, to increase its offerings of erably lower than the levels that
on
a
small
volume of
to weaken after the middle of this
trading. securities of intermediate matu- prevailed for many weeks prior to
margin. .Moreover, by the time
Corporate
and
municipal
bond
the
year;
some
commodity prices,
discount
rate
turity (5-10 years)
was
and, under the discount rate change,: or for
reduced,
especially of raw materials, un¬ bond yields as well as money markets also firmed considerably, these conditions, issues of this that matter for much of the past

substantial

derwent
...

corrections,

the comprehensive price in¬

and

dices levelled out

or even

declined

market

rates,

especially on Gov¬
obligations,'; had already
declined materially.
Based 011 this precedent, the
financial community had gener¬
ally assumed that a reduction of
ernment

slightly.
Gradually, 'the
infla¬
tionary psychology which seemed
to
dominate
business
thinking
through the summer months, gave the discount rate would be fore¬
way
to an awareness of keener shadowed by open market opera¬
price competition, growing indus¬ tions and would follow rather than

and several

underwritings of

encourage

...

sure

The

increasing

pres¬

profit margins.

lead

the

trend

generally.

slackening of business and

ever,

the

prices was accompanied by a les¬
sening in demands for bank credit.

ered

before

tions

were

For

some

had

months, business loans
been rising
less vigorously

it happened, how¬

discount
open

rate

was

market

undertaken

opera¬
on

aggressive scale; the money
ket

late

October

and

than in the

low¬

any
mar¬

early

undoubtedly

Treasury,

type will probably find

two years.

tive market with

been

ing through

banks.

moving

slowly

cor-

before

the

announcement of the discount rate

the

change

has

order

were

cleared out in short

thereafter.

Yields

corporate bonds issued

soon

were

much

lower

than

had

new

after

basis

been

a recep¬
the commercial

addition, experience in

course

the

business

boom

tions

has

modest

Nevertheless, the eas¬
open

been

than

market opera¬

slower

when

and more

credit

policy

convincingly demonstrated the began to shift in 1953. 1
desirability of regular and pe¬
It is reasonable to expect that
riodic Treasury bond offerings as
credit-will
continue
to ease as
part of an

the reduction in the discount rate

rates points

interest

will

porates and tax-exempts that had

trial capacity and

the

effective debt manage¬
A
modest
start
made with the
offering of a

ment

the

was

program.

long

economy continues to
Either
through
open

the

slacken.

market purchases or by way of a
a
few days earlier, and this small amount of
4% 12-year bonds
reduction in member bank reserve
easing
has
continued, through last September, the first
longearly December. At the same time, term bond to be issued since mid- requirements, the Federal Reserve
will provide reserves to the mar¬
the temporary spurt in the stock
1955; this was
case

followed

market

following

ment indicated

the

issuance

announce¬

that sentiment had

3%%

the

17-year bonds
Now that this prac¬
been resumed, it is rea¬

in December.

liberally than during the
However, it has now be¬
widely recognized that the
Federal Reserve authorities over¬
ket

boom.
come

corresponding periods November was not quite as tight received a brief fillip from this tice has
indication that the Federal Re¬ sonable to
1956; the contrast be¬ as it had been
expect the Treasury to
previously, but
did the easing of credit in 195%
serve was actively concerned with
especially conspicuous in member
bank
repeat such offerings, at least on
borrowings
still
the latter part of
the
economic
outlook.
thereby adding to the stimulus for
a moderate scale.
October, when averaged around $700-800 million
the investment boom which, be¬
business
loans
had
for
several and were above the level of
excess
The intensity of the recent mar¬
These considerations raise
weeks declined,
the ginning in 1955, has
although seasonal reserves for the banking system ket reaction reflects
contribute^
largely
an¬ very
real possibility that
forces in
that
long- to inflationary pressures and ha
period normally as a wThole.
Furthermore, interest ticipations of the future rather term requirements for
funds in created some troublesome
lead to a rise.
Even here, how¬ rates were close to
imph^
their 1957 peaks than a basic
change in the demand 1958, including those of the Treas¬ cations for
the present. With ag*
ever, the situation wras not clear- and the
Treasury bill rate, in par- p^d simolv of funds. The Federal ury,
may not be much, if at
cut; the tapering off in total bor¬
all, gregate business activity still not
oersisently above the Reserve's action has been widely smaller than in 1957.
Since the too far below the all-time
rowings
from
the
commercial discount rate.
Pea)V
;
regarded as being based on the flow of new funds to the
banKo reflected in part such
major the Federal Reserve is unlikely a
spe¬
Co. big
it did, therefore, the prospect of a further sag in busi¬ cavings
institutions is expected to this time to undertake an aggre '
cial factors as greater resort
by decrease in the discount rate had ness
activity, some reauction in increase only slightly, the pros¬ sive
business to acceptance
easy credit policy.
Such
financing a dramatic flavor and gave rise to credit
demands, additional steps pective demand-supply situation
policy would help rekindle tn
of 1955 and

came

187

Volume

Number 5706

inflationary fires

The Commercial and
Financial Chronicle

dampened,only, petitively |,im

recently.

volume
increase in defense

We face an

tions

order, to-hold

their

loan

portfolios.

Our

of credit policy is to avoid undue reserve
requirements, thereby re¬
in the credit markets.
' ' ■ leasing funds for
productive use.
■.«^' '•-!.*'>'•
For
the/
present;' however, it
Some Thoughts on .Bank:

Bank

are

usually

money

market

sustained expansion in their
loan

lending rates

volatile

less

more reasonable to
assume
that the commercial
banks, having
experienced
a1tremendous
and

than

Lending rates lagged well
behind the sharp advance in mar¬
ket rates
from
August 1956 to
1957.
On the downside,
the adjustment in lending
rates likewise
lags behind
the
August
also,

for

market

example,

the reduc¬
prime
commercial
lending rate in March 1954 came
in

tion

about
rate

the

month

the

after

reduced

was

shift

eral Reserve

the

discount

and

policy.

Fed¬

market

open

important
when

that

consideration

the

prime rate was
reduced in March
1954, interest
rates, had
been
falling
rather
steadily for almost eight months,
and many important market in¬
terest

than

rates

had

prevailed for - the pre¬
ceding two years or more. The
situation, at, present is not com¬
parable; despite the speed of their
recent

adjustment,

liquidity,

and

Government securities

ratios

VV'''.;
the

past

significantly in
their

few

weeks

and

over

months

present

permit

the

market

responded
moderate

al¬

the

sharply
shift

Another
the

there

future

for

Government

securities

steadily

for

The recent

declined

about

three

purchase

take

action

evident

the

lending rates in

energetic bid

deposits,

creased

The ratio of loans

conversely;- has

from

44.8

in¬

58.9%.

relaxation

some

Federal

Reserve

;

credit, it will be favorable to the

-In

For

commercial

the

1949;
1950

past 12 years except in
the annual increase since

has

averaged

other

rise

spect

for

in
'

10%,
is

expenses

1958.

and

an¬

in pro¬

discount

eral

open

with

rate

market

have
ket

1957.

These

relatively

return

under

meager

favorable

are

current

evidence

pank

in the thinking of

managements regarding

lending rates.

Obviously, lending

isolated

from

the

rates

are

general

not

busi-

and credit environment,
onould economic
activity continue

downward,

loans

drop

off

and

Pterest rates
experience a further
material
easing, commercial bank¬
ers may well push .their

Pcrations

Securities
with

change

Place

and

com¬

Anthony

Gravino,

Treasurer;

Secretary.

Victor

and

The discount

issues

this

yield, according to

maturity

founder

other

public

and

part

participation)

Atomic

Electric

Com¬
con¬

nuclear power plant

pressurized water type at
Mass;

The

also

company

member of Atomic Power De¬

carrying

gram

mar¬

in the

with

England

fis¬

velopment Associates, Inc., which

range

some money

levels that leaves very little

been

Ex¬
a

Officers

President
Milana,

Zelda

coming in for sale.

out

velopment

1962

research

pro¬

in connection with the de¬
of

fast

neutron

breeder type power reactor.

they

Maturities
to

very

regarded

are

way

many

as museum

by the Treasury unless

were

the*

offered.

can

offing.

thin,

being lengthened by

are

the

lower

interest

The market for the

The

annual

dinner

Biltmore

Hotel.

Club has

employes
years

Exchange.

FEDERAL
AGENCY

the

SECURITIES

noticeable

riod

and Approximately
Exchange's
of

only

one

slightly above 31

are

third

still

ac¬

retired.
of the

active

expected

the

attend
women.

Guests

300

will

including

with

more.

Aubrey G. Lanston

of service, 32 com¬

years

been
or

dinher,

years

pleted 40
have

about

members

Of the 300, 80 have com- :

pleted 35

years

that

retired

and

of service, and 8
the

•

Exchange 45

20 BROAD STREET

•

honor

8c Co.

INCORPORATED

NEW YORK

will

Keith

•

☆

1,277
the

service

New

membership of
who have had 25
of service with the

Some 380

while

years.

of the

The

tive,

continues

Average age of Club members

Exchange's Quarter
Club will be held to¬

of the

Club.

in which they

appear

is about 49 years, and average pe-

Stock

members

that

these obligations...

rates

way

longer-term issues

NYSE Quarter Century
Club to Hold Dinner

investors, according

many

that it does not take too much buying to have

effect

437

Anticipated

advices, because they believe this is the

se¬

Gravino,

U. S. GOVERNMENT

are

Vice-

seem

They

again

day, Jan. 9, in the Grand Ballroom

has
at

engage

business.

New

atomic

which has undertaken

the

Rowe,

obligations, with the 1960 to 1963 maturities

Lower Interest Rates

J.—Clinton

Inc.,

offices

curities

lending President,

vigorously

Co.,

formed

together

production

from

market returns to the unhealthy condition that prevailed

the time

York

Form Clinton Sees.
CITY,

«.

far

pieces, and will not be used
money

Century

JERSEY

Yankee

■

it4

price appreciation, there does not

these securities

sug¬

gests for the near term.

conditions may be
expected to be

? consideration

••

Although the optional callable 4s of 1961 and

have advanced

reserve

fact

than

the

(15%

owner

most likely in

"Museum Pieces"

attractive after tax

specialists.

requirements does not appear im¬
minent, although it should not be
ruled out as a possibility.
How¬

the

It,

utilities,

The member
of these funds

some

for

power

sponsoring

pany,

•

lib¬

operations;

reduction in member bank

ever,
ities

sion.

to work with, and

Government market,

The company is engaged in the
investigation and development of

electric

obligations.

is .the largest
utility in Con¬

rates

being well bought.

replenish
short- and in¬

the Federal Reserve author¬
presumably mindful of
that
underyling infla¬
interest rates of the
pressures,
especially
in
past several tionary
years, the rate of return on in¬ business costs, are still strong and
vested capital
averaged a modest active. Thus, a period of aggres¬
?%% for New; York City banks sive credit ease does not seem
m
1955 and
1956, and no more likely unless economic conditions
iqk? 8.2% in the first half of should deteriorate substantially

Consequently,

despite the booming
economy, ris¬
loan demands and
advancing

ing

that

means

employes

are

Quarter Century
-

Funs,ton, .Presidept, pf
change,

and

•

and

engaged
prin¬
cipally in the production, pur¬
chase,
transmission, distribution
and sale of electricity and the pro¬
duction, purchase, reforming, dis¬
tribution and sale of gas, for resi¬
dential, commercial, industrial and
municipal
purposes
within
the
State.
Territory
served
with.
electricity or gas, or both, covers
approximately 3,287 square miles,
having an estimated population of

methods

spite of the sharp rise in quotations of Government securi¬

will follow its recent reduction of
the

outlet in the

the intermediate term

demands

commercial banks ing market sentiment than in al¬
feeling the growing tering underlying conditions. Un¬
rapidly rising operat¬ doubtedly the Federal Reserve

expenses.

market

open

only a modest amount of profit-taking
feeling is still general that interest rates will go lower
during the coming year. There appears to be a better demand for

addition,

banks in New York
City, operating
expenses have increased in each

•

because the

ing

the

market.

money

gas

and

' .'

Light

1930,700.

money

demand, for loans,

ties there has been

general are

pressure

would have

and

•&'
'••••»

early, therefore, for the their holdings of
aggressively to termediate-term. Government se¬
loans, especially curities.
since reserve
positions, in contrast
The shift in credit policy so far
to
1954, are still, relatively tight, has been more effective in
chang¬
commercial banks
seek additional

far

and

struction of

order to get out of debt to the

too

seems

loan

•

very sizable, and if the Federal Reserve Banks take little
action to offset these forces which will increase the
supply

short-term Treasury
•

Rather, the
decline since March
1954
from first reaction seems likely to be a
35.2 to 27.0% in the ratio of Gov¬
rebuilding of liquidity; undoubt¬
ernments to deposits of
reporting edly, many banks would welcome
member banks.
to

time

loan volume.

new

this

banks of the system

loans, currently near their
record, but it would be
surprising if commercial banks

for

would seek

banking system

money market. Through
obligations, carried out ex¬
in Treasury bills, the credit facilities

Company

necticut

•

Connecticut

Power

year

all-time

tios.

all

The

electric

hand, the monetary authorities might decide to

prices receding from 104% to
plus accrued interest,in each

case.

from circulation and the repayment of loans at this
period of the

immediately reduce their

years

par,

would
-

estimated at $42;-

are

able at the option of the company
at

operations are concerned, and this could still be a favorable
development for the money market. The return flow of currency

in bank

should

once.

The new bonds will be redeem¬

Negative Policy Bullish
On the other

port¬

deposit ra¬
The reduced
liquidity of the

quantity, at

1958

year

that be.

powers

with the, sustained
rise in
loans, has thus had a major
effect upon loan and

Government

This

system.

from

will

417,000.

pro¬

sale of Government

the decrease in

the

bonds

and gas seryio%:
expenditure^ for the

variety. Accordingly a positive type of open market operation is
being looked for if this is the kind of action to be taken by the

closely
years and are now lower than at their
relationship to bank lending
any
time
since*
1943,
whereas rates that prevailed in 1955 and
loans, total assets and deposits are part in 1956. A decline in business
all
substantially larger. The steady could well lead to some reduction

folios, coupled

be. received

these

pany for electric
Construction

of the deposit banks can be increased or
decreased.
Because of
the uncertain state of the nation's
economy, it is not expected that
open market operations at this time will be of the credit
limiting

easing in market rates

has served to restore

banks

term bank loans presently
outstanding and the balance will
.be applied toward the financing
of the company's construction pro¬
gram, which provides for greatly
increased demands upon the com¬

Monetary Authorities

sale

short

;

clusively in recent

credit

reason

very

Open market operations is another way in which the
monetary
authorities can have an influence on the

bearing upon anticipate a shortage of invest¬
ment outlets or to become overlending rates is
bank holdings of eager in placing new funds.

that commercial

decrease

Government market appears to be in
good shape for any

factor

outlook

almost

little

seems

sizable.

whole

the

and Federal Reserve

and

to. be

make money and credit available in

policy. Total
tionship to market rates ; cannot demands for long-term funds are
be considered abnormal
or
un¬
expected to remain large in 1958
usual.

continues

requirements of the member

policy; apparently the market has
already discounted some further
the easing in business, credit demands

rela¬

Proceeds
the

added to other funds and applied1
first to the repayment in full of

will have a telling effect on the
money market. The most effec¬
tive and fastest way in which the
money market could be influ¬
enced would
be through a downward revision in the reserve

the

has

this

It is evident that the
powers that be, have several courses of
action available to
them, and any one, or any combination of these,

forces of the market
place to ease
bond yields and
money rates.

However,

'according to the underwriters.

some

joined

decline, the

business

presumably

recently

cedure which will be followed
by the monetary authorities will
determine in no small
way the future trend of the market for
income bearing obligations.,
v

support the expectation of some¬
what lower interest rates in the
period to come. Should aggregate

would

have

The

Eyes

■?"■■■

developments

banks

■

terest to yield 3.89%.* The coupon
Ms the lowest in about \xk years,

The financial
community is watching the money market with
more than a
passing amount of interest, because the action or in¬
action of the Federal Reserve
Banks (in the money market) will
have an important
bearing on, the future trend of interest rates
and the supply of credit.
With the holiday season out of the
way,
and the demand for
money and credit on the

lending rates
much, if at all,
'v
X £; y!

Conclusions

1 ■

commercial

Treasury financing.

lines,

decline

Economic

fairly

rise,

pro¬

their

from present levels.

no more than retraced
the increase they incurred in the
course of 1957. Since bank
lending

many

rates have

lagged

these
not

may

j first! and ' refunding
mortgage '3% %•> bonds, ' series O,
due Jan. 1, :1988.
The bonds are-;
priced at 99%% and accrued in¬

into the higher
yielding obligations. As an offset to this, it
being noted that the demand for the shortest and most liquid

loan

manageable

'Cohipdn^

move

credit
needs when the
economy resumes

ready

1956-57

their

portions,
thus
improving
ability to meet
further

interest

rates

reduce

out-of-town

& Cq» is offering $30,0QQ,0QO. The
Cohhecticut ' Light;' ana
Po\ver

rather limited

reported that

the

activity continue to sag
in the months
ahead, as now seems
possible,
the Federal Reserve
levels lower

were

past three years,
a slacken¬

advantage of

rates

much

delay is subject to
qualifications.

some
r.

even

without

the

sharp rise it has had in

turn

ing in credit demands to
pay off
their indebtedness to
the Federal
Reserve
banks,
replenish
their

along

Consequent¬

ly, the conclusion that bank lend¬
ing rates will follow the discount
rate

its upward course.
Until substantial progress has
been achieved

months

easier

accounts

will take

the

headed
Co., Chas?;«

group

W. Scranton & Co. and Estabroote

The opinions of most
money market specialists still appears to run
towards the bullish side because
they hold to the belief that in¬
terest rates and credit will
become easier.
^ / ; ; "
:'
The trend of
purchases in the Government market continues
to show an extension of
maturities, and it is

rates.

An underwriting
jointly by Putnam

display strength in spite
period of time.
of the year has
brought with it some profit taking in
selected issues, but this
selling has been very readily absorbed.

seems

Governments

The Government market continues to

The

Reporter

By JOHN T. CHIPPENDALE, JK.

ease

Rate^

Conn. Light & Power
Bonds Marketed

of an amount which is such an event, lending rates would
not yet
determined, but which doubtless decline,
especially if the
could expand considerably in the Federal Reserve
should enhance
period * ahead, /Til 'this economic the liquidity of the
banking sys¬
environment, the prudent ^course tem) by! reducing member
bank
spending

Lending

their

to minimize the
reduc¬

(125)

Edward

the, Ex¬
C.

Werle,

Vice-Chairman of the Board.

CHICAGO

☆

☆
...

BOSTON

(126)

Continued jrom

American Slock Exch.

Receives dominations
R.
Dyer, an American
Exchange member for the

past 29
his

consecutive

than

renominated to

years, was

third

term

man

It noted that General Motors

13.3%

today by

Edward T. Mc-

Cormick, ASE
President. The

post will be
filled at the

regular
board

also

members

terms,

named

five

three

year

four

non

non-regular member to a one year
term and two trustees of the gra¬
Mr.
the

Dyer,

three

Wall

1927

Shearson, Hammill &
Co., after receiving his BA from
Manhattan
College.
A
salaried
employee for Dates &
(his father's firm) in 1928,
he became a partner in that firm
mem¬

bership on the old New York Curb
Exchange.
First

elected

the

exchange's
1946, Mr.

governors

Dyer

reelected to three year

was

board terms in

became

board

He is

ahead of

and

the

loans

elected to

was

Athletic Club, The
Friendly Sons
of Saint
Patrick, The Cardinal's

York

Stock

and

the

Twenty

regular

for

three

member

terms

year

Vanderpoek Adriance,

Jr.,

riques, Jr., Walston & Co., Inc.;
James
A.
Herman,
Joseph
F.
Reilly; and Edwin P. Wheeler.
Messrs.

Adriance,

Wheeler

were

first time.

nominated

the

for

the

board

mem¬

non-regular

mem¬

terms

were

three

year

John

Brick, Paine, Webber, Jack¬
son
&
Curtis;
Albert
deJong,
Hirsch & Co.; Louis J.
Puglies,
Filor, Bullard & Smyth; and David
Van

Alstyne,

Noel
Van

Co.

Mr.

Alstyne

inees.
have

Jr.,

Also

renamed

nonregular

and

the
to

Mr.

the

ember

board

Charles

M.
Finn, Adriance &
and E. E.
Spencer were
nominated to three year terms as

Finn,

the

gratuity fund.

Kenneth W. Martin, of Merrill
Lynch, Pierce, Fenner and Smith,
a
non-regular member, served as
Mr.
Teichgraeber's assistant on
the

Nominating Committee.

Har¬

old J. Brown, Brown, Kiernan &
Co.; James Gilligan, Gilligan, Will
&
Co.; and Louis W. Herman
served

regular members of the

Nominating Committee.
ald

M. Don¬

Grant, Fahnestock & Co., and

Lloyd

W. Mason, Paine,

Jackson &

Curtis, served

Webber,

tee.

1957's

non-

gross

record

sales volume this

$140,000,000,000,

the

level

downs

Last

the

week and

magazine

made
12,345 in the previous

11,087

Lumber

3"";-

Steel-consuming industries should fare about this way: in
one should look for
production of 6,000,000 cars and
1,050,000 trucks in 1958, compared with 6,150,000 cars and 1,080,000
trucks in 1957. Appliance production will be about
10% better than
in 1957 with best sellers

much

comprising clothes dryers, washers,
refrigerators.
Machinery ship¬

electric
as

25%

lower

than

1957, the

amounted

27%

of stocks.

weakest
segment in metalworking. Construction dollar volume should reach

Production

was

51.7%

below; ship¬
previous

ments 34.0% below and new
orders were 24.0% below the
week and 11.8% below the
like week of 1956.

Business Failures Increased

Moderately Last Week

Commercial and industrial failures
week ended Jan. 2 from

rose

to 203

in the holiday

166 in the

preceding week. Dun & Bradstreet, Inc., reports. However, this increase did not lift casualties
.

to the 222 recorded in the
comnarable week of 1957,
slightly above the 198 in 1956. Thirty-two

remained

businesses failed thari in the similar

that

economic

automobiles

dishwashers, radios and

Shipments Advanced 13.8% Above Output in

shipments, of 479 reporting mills in the week ended
Dec. 28,
1957, were 13.8% above production in the holiday week,
according to the National Lumber Trade Barometer. In the same
period, new orders were 15.9% above production. Unfilled orders

third

ments may

year ago.
Canadian output last "week was
placed at 3,348 cars and 568
In the previous week
Dominion plants built 3,378 cars
and 535 trucks and for the
comparable 1956 week 5,607 cars
and 957 trucks.
3/

stated

metalworking will continue to
dip that started in 1957's
quarter, but the gross national product will climb slightly
to about $445,000,000,000 in the next 12 months
compared with the
expected $435,000,000,000 1957 total.
Slight inflation and high volume in soft goods and services
will account for the gain, it added.
The major soft spot for
metalworking in the year ahead is the
decline in capital equipment
spending.
mild

shut¬

7 ''

trucks.

managers also

declared

Last week the agency
reported there were 13,022 trucks
States. Th|s. compared with

312 occurred.

the

extended

under

Lumber

second half.

in the United

compa¬

predict that profits in 1958
will be lower and costs higher.
Selling prices will rise, while ex¬
pansion will slow down. Defense spending will be high and em¬
ployment steady and improvement in business will occur in the
further

result

Jan.

dipped

week's car output declined below that
of the previous
by 2,763 cars, while truck output increased by 6*77 vehicles
during the week. In the..corresponding' week last year 91,130 cars
and 11,087 trucks were assembled.

was a year ago.
Seven of 10 managers say their
dollar volume will equal or exceed last
year's pace. In last
year's survey, 95% of the respondents expected 1957 dollar volume
to equal or exceed that of 1956.

brunt

car

will be

industry's optimism, the magazine pointed out,

ended

Last

1958

was

preceding-period

aut^-'assembly plants.
week's

as a

week

guarded than it

"Steel"

...

Output Eased in Latest Week

output totaled 77,182 units and compared
with 79,945
(revised) in the previous week.
The past week's
production tbtal of cars and trucks amounted to
90;204 units, dr
a decrease of
2,086 units below that of the preceding week's out¬
put, states "Ward's."
r

expectations.

metalworking

Christmas Week Ended Dec.

year

"Steel"

Passenger car production for the latest week
1958, according to "Ward's Automotive Reports,"

thinking of a majority of plant managers who par¬
ticipated in the metalworking magazine's annual survey of busi¬

it
as

regular members of the Commit¬

v7>:i

Result.of Plant Shutdowns

■

60.5% of Ingot Capacity
Metalworking's

the

the Associa-'

•

Dec;,-.28, 1957, totaled 410,022

7.7 :..7 7. 7

Automotive

The Steel Mills This Week Look for Output to Rise to

bear

•

•••

Government-prescribed import curbs, they stated.

The

reports.

decrease of 77,524. cars, or 15.9% below the correspond¬
ing 1956 week,and a decrease of: 160,390 cars, or 28.1% below the
correspondihgvTweek in 1955.
•
;

should increase this year because of normal population
growth and

governors

-'v.-:'

■■

belo^fhe preceding week due to the holiday-

of American Railroads

cars,

Officials attributed the decline to sharply curtailed exports
Europe and an expected listless state for business generally
throughout most of the year. Domestic demand, on the other hand,

The

7, 1956.

.JJiider Preceding Week

Loading^ior-.-rt-he.-.week- ended.

year-to-year

deJong

Henry Parish, II, Carl M.
Loeb, Rhoades & Co., and Adolph
Wcolner, Bache & Co., for two
and one year terms respectively.

tion

decline since 1954.

That's the

were

trustees

30.5%

The Interior Department predicted domestic crude oil
produc¬
1958 would drop 1.8% below 1957, the first

tion in

ness

fadings in Christmas Week Dropped 30.5%
;•,

week of 1956.

the past week.

past.

Jan.

Loadings of revenue freight for the week ended Dec. 28,
1957, which included the Christmas holiday, were 180,321 cars or

Institute, trade organization for the oil industry.

rable

nom¬

first time

■

distributed

■

Changes in heating oil supplies were mixed. The heavy grades,
as are used by
industry, rose 1,232,000 barrels in the week to
barrels compared with 42,649,000 barrels in the like

Alstyne,

Puglies and Mr.

are

Mr. Brick
served

Van

Ended Jam 4, 1958

58,906,000

the

weekly production for

Output* Showed Improvement in Week

amount' of* electric-energy

Car

past.

Nominated
bers

for

pro¬

actual weekly production

on average

kwh. above- that of the week ended

such

and

Mr. Henriques and Mr.

Reilly have served
bers

Herman

Motor fuel in storage as the week ended
amounted"^ 194,165,000 barrels. The year-earlier total was 185,796,000 barrels.

Adriance & Finn; Harry P. Hen-

by the electric
light and fewer industry for the week ended Saturday; Jan. 4,:
1958, was estimated at:l 1,692,000,000 kwh., according to the Edison
Electric Institute. Output the past week was higher than in the
preceding period.'
:,v
«.r
J*..' l':
V* 1 ■ ,.:'4 J/'' -V:
For the Tweek ended "Jan. 4, 1958 output rose
474,000,000 kwh. ;
above that of the previous week and advanced
21,000^000 kwh. or
0.2% above that of the comparable 1957 week and by 635,000,000

Gasoline stocks throughout the nation increased 4,679,000 bar¬
rels in the week ended Dec. 27, according to the American Petro¬
leum

steel-

average

;:V' v;:

0 :'r

up to $9,900,000,000.
consumer
credit reached $43,500,000,000 in November,
increase of $256,000,000 from the previous month and
almost $2,700,000,000 higher than a year earlier.

Nominated
governors
were

;

the

rate for the weeks in 1957

•

$92,000,000

Repair and modernization loans went

•

•"

Electric

Total

1957,

American

Exchange Five

Club.

1947-1949.

year

$57,000,000.

is based

Index of production

ing the total of this type of debt

Committee of the Laity for Cath¬
olic Charities in the Diocese
of
New

rose

that

For the like week a month ago the rate was 69.2% and

Non-instalment credit—single payment loans, charge accounts
and service credit—went up $164,000,000 in November, 1957, bring¬

member of the New York

$8,000,000.

chairman in 1956.

announced

annual capacity of 133,459,150 tons as of Jan. 1, 1957.

duction 1,770,000 tons., A .year: ago the
was placed at 2,519,000
tons or 98.4%.

earlier, the board noted.
In November, 1957, auto credit showed a. drop of $37,000,000,
but other consumer goods paper went up $64,000,000 and personal

1947,1951 and 1954.

vice-chairman

1952

his first term

...

seasonally adjusted basis, outstanding instalment credit

Institute

The industry's ingot^production

based

1957, somewhat below the
monthly average of the first three quarters of the year.
Seasonally adjusted extensions of credit amounted to more
than $3,500,000,000, while repayments amounted to almost $3,400,000,000, the board said.
The unadjusted instalment debt gain in October, 1957, was
$85,000,000, and in November, 1956, it was $255,000,000. Two years
earlier, the increase was $298,000,000.
The latent increase brought total instalment credit to about
$33,600,000,000 at the end of November, 1957, some $2,400,000,000

market

board of

increased by $163,000,000 in November,

Dyer

debt by

-rV-'i

;

60.5% of capacity for the week beginning Jan. 6, 1958, equivalent
to 1,548,000 tons of ingot and steel for castings, as compared with
an actual rate of 58.6% of capacity, and 1,501,000 tons a week
ago.

November,

for

in 1929 when he assumed

their instalment

iSteel

and

operating rate of steel companies, having 96.1%
capacity for the entire industry^ will be

reported.

order

stepped

Iron

making

„

American

The

1957, an increase from the previous month's rate
but far short of the rise a year earlier, the Federal Reserve Board

Street

and castings.

steel for ingots

The

stock specialist on
market's trading floor, entered

clerk

:"vV-"r *

counted

Consumers

terms.

year

Flint (Mich.) on Monday and Tuesday. Mean¬
while, Miercury returned to work the past week after a shutdown
all of the preceding week and Plymouth resumed operations at ;
Detroit and Evansville, Ind.
on
Thursday as did Chrysler.., at
Detroit. Dodge and De Soto resumed operations this Monday!

members to three year terms, one

tuity fund for

cars,

and Buick output at

regular

marking a steady decline since

production last week at 90,204 -cars and
trucks compared with 92,290 in the preceding week—both weeks
were holiday periods—and 102,217 in the same week last year,
Idled all of last week was Studebaker and Packard assembly

10, 1958. The Nominating Com¬
mittee,
headed
by Bernard
E.

Teichgraeber,

imported

"Ward's"

Feb.

combined.

Six

annual election

recorded in 1952.

•

During the week ended Jan. 5, the nation's steelworks operated
at 55%i of capacity,,.eqhal to production of 1,354,000 net tons of'

"Ward's" observed, outwardlyJ.are
restricting the level of operations of certain long established
United States car producers, with the potential United; States^
vs. foreign trend in car sales of headline proportions.
It declared that 1957 sales of import cars in the low-price
field alone are estimated to equal those in the same price class of
American Motors Corp., Studebaker-Packard Corp. and the Dodge
Sales

announce¬

ment

publication said .reduced demand will hold output of
steer for ingots and cakihgs'to around. 110,500,000 net tons this'
year as against "113,000,000{ net tons in 1957. Steel users can expect
plentiful supplies, ;:jrpf>r6yed quality - and service and steady to
slightly higher prices.
fV,;

Co.

3.1% compared with 3.5% in 1956,

•

Corp. took 46%, Ford Motor

Com

was

1953

The

1,104,325,

Nominating

mittee,

Thuisday, January 9,

production in 1957 at 6,115,467

30.9% and Chrysler Corp. 20% of industry passenger car assembly
in 1957.
Manufacturers outside the Big Three thus aggregated

according to

R. Dyer

share dropped

by the
Exchange's

ernors

1958 compared with $47,400,000,000 in 1957 and
in 1956. -In transportation equipment about 75.000
freight cars will be produced compared with 101,500 in 1957. Rail-,
road capital spending will hit $1,400,000,000, equaling that of 1957.
Naval and commercial shipbuilding is on the rise.
Civilian air-1
craft production will approximate about 100 transports and 6,000
to 7,000 smaller planes .and, electrical machinery expected sales
total is $8,000,000,000 .compared with $7,200,000,000 in-1957 and '
$5,900,000,000 in 1956.

Board of Gov¬

James

as the so-called Independents'
point since before 1935.
<

cars and
1,079,000 trucks compared with 5,801,864 and
respectively, for entire 1956.
1

that

market's

$46 100,000,000

"Ward's" counted United States

Chair¬

Chronicle

$49 000,000,000 in

22-year high

to the lowest

year

one

page

ipj,e state of Tiade and Indusby

James

Stock

-f

and Financial

The Commercial

week

although they
per

prewar

cent fewer
1939 when

Casualties involving-liabilities
173 from 142

On the other

of $5,000 or more climbed to
week ago but did not reach
last year's level of 196.

hand, small failures under $5,000, edged to
24 in the previous week and 26
in the corresponding week
Liabilities in excess

of:$100,000

ing

concerns as

were

30 from
of 1957.
incurred by 22 of the fail¬

against HI in the preceding week.

Retailing failures rose moticeably to 108 from 77, construction
to 33 from 20, while the total
among manufacturers edged to 38
from 36. Casualities in commercial
service continued at 12 and those
in wholesaling dipped to 17 from
21. Although more manufacturers
and

wholesalers failed

than

vailed in other lines'.

year

ago,

declines from 1957 pre¬

In seven of the nine

during the second

"geographic regions, casualties ran higher
holiday week. Most of the increases were slight*

including the advance .in the Pacific States to
total

the

East

the

South Atlantic

North

Central

38 from 32, but the
States jumped to 22 from 12 and m
34 from 20.
The week's onlv decline

Number 5706

187

rolume

The Commercial and Financial Chronicle

occurred in the Middle Atlantic States, down to 69 frohi 74, while
West North Central States held steady.-Year-to-year trends
continued to vary |With dips from 1957 in five regions and mild
rises in four regions.
*
;
■"
7' 77
y :■
the

Higher in wholesale price last week

were

Brad-

Department store sales

■

in general-

31 raw foodstuffs and meats,

the-price

use.

pound of

per

and its chief function
:

show the general trend of food prices at the wholesale level.

is to

Reversed

Wholesale Commodity Price Index
And Moved

Its Trend

Slightly Downward the; Past Week

;

reported

have

wheat

States

purchased
the

200,000 bushels of

West

corn

Price concessions

around

Coast.

360,000 "bushels of
United Kingdom

The

.•"was

over

the

past few -months.

Carded

cotton yarn

prices

Continued

from

Market Turn
amount

they spent

services.

goods

and

the

postwar years,
however, consumers have spent
from $15 to $20 billion, and, in the
last few years, about $25 billion
than

pected

would

have

the basis of the

relationship
between
personal income
and
expenditures.
Of

been

ex¬

prewar

disposable
consumer

the two periods are
not strictly comparable and each
had its special influence. But may
I

course,

suggest

nearing

re¬

that

the

perhaps
of the

end

are

special

postwar influences which contrib¬

debt and liquid assets is not

favorable

war

not

much

uted

week

were

ended

desire

gains in sales of cloth coats, fur pieces,
call for fashion accessories

ago.

Increases

suits,

overcoats ani

over

last

year

prevailed

better dresses and

the

that of

buying

year

of men's

sportswear, while interest in children's apparel

equalled that of the similar 1957 week.

Best-sellers in home furnishings were china, glassware, house¬
wares and
lamps. There were slight year-to-year increases in sales
of television sets and hi-fi
sets, while interest in major appliances
remained at the

similar

1957

level.

Furniture

volume

expanded

substantially, with principal gains in bedroom sets, upholstered

chairs and case goods.
~
Traditional sales promotions encouraged consumer buying of
linens and
draperies, with noticeable gains over last year.
Food sales continued close to those of a week earlier,
In anticipation of extensive*
,

tailers

appreciably stepped

.Winter apparel last week.
The usual

up
..

January sales promotions, re¬
their buying of men's and women's
.

post-Christmas week lag in textile trading occurred

during the

week.

Bookings in woolens and worsteds lagged and
volume in carpet wool in Boston and
Philadelphia was unchanged
for FRASER

Digitized

not

bonds.

see

like to sum

up and

rather

I have

philosophical
painted a picture of
with a great deal of

little tired.

It's been a wonderful

party,

we'd

but

to- take

the

better

than

downward

much

would
a

normally be
cyclical move like

the present one.

Liquidity Problem

tremendous assist from the

liquidity

while

year,

factor

from

earlier

the

particular plus
definitely missing

present equations.

Fifth

and

will

course

last,

how much of

Government
there

—

spending

help, of
absolutely no
some

and

the curtailment

plant
expenditures and

equipment
reduction

business

together cut

put by around

our

inven¬

total out¬

$8 billion in 1958,

likely, and if consumer
spending follows suit, the Gov¬

seems

will

have

provide a
assist
than

much greater
anything I have heard about, if it
is to be a significant stimulant to
business

activity.

We hear

consumers

great deal about how

wanted, or, if they did not have
enough money, they could; easily

economy.

one

to lend

But where do

•

Corporations

it to them.

stand today?

have

over

$50

billion

1945

and

their

long

have swelled

ing the
cash

same

and

rities

since

liabilities

by $70 billion. Dur¬
period, holdings of

ment

Government

secu¬

have

It is true that Govern¬

total

take

now

output,

20%"

compared with
in 1948.

our

On the other

itures
sumer

hand, total expend¬

durable

for

durables

goods

—

con¬

and

automobiles,
producers' durable equipment,
and

for

total

just

construction

large

—

account

where the excessive accumulation
in

Today,

liabilities

are

five times cash and securities!
The

position

consumers

shows similar trends.

Holdings of
checking and saving ac¬
savings bonds, and life

currency,

counts,

insurance
no

end

cash

values

higher than they
of

1945.

Yet

today

are

the

were

the

total

debt, instalment
charge account credit

mortgage

debt,

and

have

nearly quadrupled in the same
period. The relationship between

the

good

making

responsibilities just
at a time when—economically, at
least
we are most willing
to
of

our

—

them.

assume

will

thrift

may

that

fasionable

become

again, and with it we may have a
higher level of moral values.
Indeed, much of the postwar

inflation,

particular

and

the

rise in interest rates, was a result

desire to live high.

our

These

developments essentially reflected
our
unwillingness to" r e l e a s e
labor and resources for the

scarce

schools,
water

now

surfeited

with

ready

refreshes,

aid,

that we are a little
high living and

for the pause that
will be willing to

labor

release

and

resources

—

still time—to tend

while there is
to the very

need so desper¬

ately.
Perhaps

clearance,
develop¬
and arma-

power

foreign*
which

ments

slum

roads,
systems,

vital business at hand

—the battle for survival.

N. Y. Bond CM to
Hear S. E. Smith
Sumner
of

Club

Join C. M.

has

been

the

DENVER, Colo.

1575 Sherman.

—

the

purchase of new items can be
easily postponed, it is ques¬

most

tionable whether

ignore the wide
ity which still

can

with

few very

First

Hathaway
He

was

Company,
previously

International Corpora¬

afford to

of instabil¬
exist in the

brief comments
about the stock market.
Corpo¬
rate earnings are moving down¬
ward.
I expect them to be lower
a

Herluf A.

tion.

Donald
Donald

economy.

Just

areas

—

Christensen has become affiliated
with

durable

Hathaway

(Special to The Financial Chronicle)

these

are

E. Smith,

light Roof, of the Waldorf-Astoria

greatest and where—just because

things

Sidney

Hotel.

—

years

New York

of State for External
Affairs
of Canada, will be the
guest-speaker at the club's annual
dinner today, Jan. 9, in the Star-/

output as they did in
1929
just short of 25%, to be
precise.
Since this is the area
recent

President

Emerson,

that

announces

total

our

The' Bond

proportion of

securities.

done

not

dramatically

Secretary

in 1929 and 14%

gone up
a
mere
$5
1945, total corporate
liabilities were only double hold¬
ings of cash and U. S. Government

billion.

had

the desire
need with

don't have;

very much more
gloomy if the Rus¬

and

aware

purchases of goods and

services

borrowed

term

current

describe

much

stability the larger Gov¬
ernment budgets have lent to. the

some

bearish

ments,

doubt about that.
But if

as I said before;,
to buy things you don't

Government Spending Stimulus

had enough cash or readily liquidatable assets to buy what they

find
,

and

excess

postwar

that

very

our

very

Indeed, and this is my fourth
point, the question of liquidity is
a most
strategic one. Up to 1955,
businessmen

But

I do think it is clear that the
pace
of economic growth received
a

ernment

most

concerned

serious burden.

changing

are

such

the money you
I would
be

turn

tories

turned

even

sians

will not be

our tastes
sobriety!

condition

business does depend on optimism

ex¬

suits, with the

much

andy

the quality of these debts.
willing to make the optimis¬
tic and not altogether reliable as¬
sumption
that
their repayment

the

Regional estimates varied from the comparable 1957 levels by the
following percentages: Middle Atlantic States +6 to -f-10%;

year

could be very dangerous, as good

significance of the fact that retail
sooner

Pacific Coast, -f-3 to -j-7; East North Central and Mountain
-(-1 to
+ 5; New England, West North Central and South Atlantic 0 to
+ 4; East; South Central —2 to -f-2 and West" South Central States
—3 to
•
-•
■
;
;■
1
Women's apparel stores reported the niost noticeable year-to-

economy

with

sales

expected in

•

consumer buy¬
Wednesday of last week,
extensive reduced-price clearance sales promotions helped boost
retail volume moderately over that of a
year ago.
Shoppers were
primarily interested in apparel, housewares, draperies, food prod¬
ucts and television sets.
There was a slight increase in sales of
•new
passenger cars, spot checks revealed:
The total dollar volume of retail trade in the period ended
on
Wednesday of last week was 2 to 6% higher than a year ago,
according to spot estimates collected by Dun & Bradstreet, Inc.

period

excess

things of life after 15 years of
depression and war, the early ef¬
fects of the burgeoning birthrate,
etc. I think we cannot ignore the

Although the usual post-Christmas decline in
the

this

refer, of course, to
the large holdings of liquid assets

Trade Volume in Latest Week Rose to 6%

much

penditure?

placed at only 8,785 bales,
leaving a net stock under loan as of that date of 1,367,755 bales as
against 3,441,208 on the same date last season. Exports of cotton
for the season through Dec. 23 were
reported at 2,088,000 bales as
compared with 2,836,000 in the same period last year.

occurred

only six

attractive to stocksr.
7
Indeed, this spread is still char- .1

really be? It will be

ing

unfavor-t

very

which existed

very

in the post¬

was

for

Above Year Ago

the

favorable

months ago, the spread between:
bond and stock yields is still not:

note.

1939-41.

years

unfulfilled

than

I would

Up in 1958?

help

Withdrawals

prices

return

more"

Perhaps

debt, the great

any

bond

income

much

one

toward

and low consumer

20, the second largest for

able

in stock prices has:,

the

position

trading.'

Dec,

brought

finish

Will Business and the

loan in the week ended
season.

the' rise

the drop

little time off and clear our heads.

thus far this

too much.

why anyone
should bid stock prices up — par¬
ticularly the blue chips. As things
stand
now,
I
would
advocate
coming back into the market in
a
small way anyway in* 1958—
but at prices more attractive thanthose prevailing today.

page

Spot cotton prices trended mildly lower the past week as did 1
The decline was largely due to'"selling influenced by a
•continued increase in the stock of certified cotton. The CCC re¬
ported that 148,844 bales of 1957 crop cotton had been placed under
.futures.

While
and

No,

for January-February shipment.

mained steady in very quiet

cut

Stock-Bond Yield'Sptead
Unattractive

Tuesday.

slack, its various members a little
too well-fed, quite satiated, and a

hard wheat bakery-ilours' stimulated some
buying early last week but most buyers, were hesitant in making
new commitments owing to
uncertainty over "price support legis¬
lation. Domestic bookings of all flours were extremely small for
the week.
The spot raw sugar market developed considerable
activity at, the week-end, with more than 60,000 tons reported sold
at 6.15 cents delivered, a rise of 5 poihts.-^The.refined sugar mar¬
ket remained quiet and unchanged.'
'
---■viTrading in the coffee market last week dropped to a mini¬
mum and buyers and sellers held
aloof pending the turn of the
•year. ,The coffee carryover at the end of'the 1957-58 marketing
year,"according to a United;States Department of Agriculture
•report, is expected to be about 20,000,000 bags, or the biggest "since
the 1946-47 marketing year.
Holiday dullness^ featured trading in
cocoa and volume dropped to the lowest in many' weeks. •
Lard prices trended lower and weakness developed in the
peanut, corn and soybean oil markets, with the easiness attributed
to the drop in price of soybeans last week.
In the Chicago live¬
stock markets, steers were mostly steady to Slightly firmer, while
prices for butcher hogs advanced 25 to 50 cents over a week ago.
Sales of print cloths were very limited in the holiday week,
although a stronger price tone prevailed ih the cotton gray goods
market generally as a result of substantially '.reduced mill inven¬

tories

Therefore, I do not expect divi¬
dends to rise, either. I hope
they
won't

three times

large increases shown for this week reflect in part the fact that this
;year Christmas was on Wednesday and the week
therefore included two days of
heavy pre-Christmas shopping; in the corresponding week last
year Christmas

United
bought

see

a bull market top and
7
far, far narrower than it hasever been at a bear market bottom,
when stocks usually yield two or

♦The

capac¬

the

increased 34% above that of the like period last
year.
In
preceding week, Dec. 21, 1957 an increase of 12% was reported.
For the four weeks ended Dec.
28, 1957 an increase of 7% was
'registered, For the period of Jan. 1, 1957 to Dec. 28, 1957 the index
registered an increase of 2% above that of the corresponding
period of 1956.

ing of wheat by India and the expectation'^^nbstantial sales after
the first of the year held wheat prices" fairly steady.
India was

excess

acteristic of

1957

grain contracts to new lows for the season** Selling began with
soybeans and quickly spread to other grains: Large stocks of beans
in Chicago warehouses and talk of a lowering of supports for nonbasic crops in 1958 were factors in the soybean drop. Export buy¬

pressure

price
little chance as yet for
upturn in earnings in 1959.

level, I

stocks

28,*

tire

several days of heavy liquidatioh'which sent most futures"'

were

taken from

Following minor declines; in the earfy part Of the week, there

ended Dec.

According to the Federal Reserve Board's index, department
store sales in New York
City for the weekly period ended Dec. 28*,

•jfyCf'.r7l/;%:*;"//:;

year ago.

week

January white sales are presently in progress but are reported
not doing so well, while other departments are
making a reason¬
able showing.

price level trended mildly downward
largely reflecting lower prices for most grains, cotton,
lard and.cocoa. The index finished at 277.62* on Dec. 30, comparing
[ with 278.44 a week earlier and with 300.23 On the corresponding
a

country-wide basis

estimate.

servers

last week

J date

index for the

"77 Retail trade sales volume in New York City last week ad¬
vanced about 2 to 3% above the like period a
year ago, trade ob¬

The* general commodity

ing' week, Dec. 21, 1957

-■'..'/V,-

The" index represents the sum total of

•'

rye, oats, butter,

and hogs.

outdoor furni¬

summer

1957, increased 31% above the like period last year. In the precedan increase of 3% (revised) was reported.
For the four weeks ended Dec. 28, 1957 an increase of 5% was re¬
ported. For the period Jan. 1, 1957 to Dec. 28, 1957 an increase
of 1% was registered, above that o? 1956.

•

-cocoa

slight rise in orders for

the Federal Reserve Board's

beef, lard, sugar,

['eggs, steers and lambs. Declines included wheats

was

Because of

and

week; while interest in bedroom suites, upholstered
chairs and case goods dipped moderately. Volume in
linens, floor
coverings and draperies improved and slight year-to-year gains
occurred. A moderate gain from the preceding week in wholesale
orders for lamps and lighting fixtures
occurred, while the call for
television sets and major appliances lagged.
Wholesale food buying was close to that of a week earlier.

compared with $6.13 at this time a year ago, or a rise of 3.1%.
The 1957 high of $6.45 occurred on Dec. 10, while the low of $6.03
was reached on May 14.
' 77 -//A''•
v/.'
:
"

slipped somewhat.

There

street, Inc.,, turned slightly upward in the final week of the year
to stand at $6.32 on Dec. 31, as against $6.31 the week before.
It

ity

ture the past

index, compiled by Dun

in 1953.

for

fibers

Wholesale Food Price Index Edged Slightly
Higher in Past Week
wholesale food price

from

a week earlier.
Although there were some scattered orders
print cloths and broadcloths, over-all trading in cotton gray
goods slackened.
Volume in industrial fabrics and man-made

;

The

(127)

Jan. 5

his

passed

at the age of 74.

retirement

brokerage

City.

MacKay

was

away

Prior
in

the

business in New York

The Commercial and Financial Chronicle

(126)

H-' '

Continued

from

strike.

Another Look at Government

gree

Xiam H

Davis

like Wil-

men

there

ized to outlaw all forms of com-

Rnai-fi
nlacod
its em¬
emhelm, t.hrk
the Board
placed
its
phasis on mediation rather than
decision-making. The meetings of
tri-partite board itself resembled

•'

;

bargaining •
sessions.
Nonetheless, the
Board's
wage
regulations
and
its
rulings on

The

role

siderable

tion

degree

of standardizecollective
bargaining

fronts.

this

shared

management

the

Board's

limited
"catch

those

necessary

up"

inula";

to. cost-of-living .inLittle Steel Forsecond
that further m-

creases

should be limited to those

the

.creases,

equities."

The first of these pol-

correct

made labor

icies

it amounted to

"gross

/airlines,

and

such

dis¬

over

laws

„pr_

rnntrarv

disputes

application by the
by private parties* The major.difference in time
on

government

to settle disputes in major
indugtri
thus pcrmitting strikes

piticulai,
wvas
any foim of

intervention

"freeze"

th^ir

fnll

mum'

gv—™
tnm M
fact
limited

was,

dispute, the administra-

;

tto

invokud'm

has

mformai fact-

The second

wages.

ment

unhappy

elasticity.

because

With

respect
internal wage structure in

lis

the

a plant,
principle

iroi

was'uuoiiaiieu

ure

episode

The

Wagc

ai«a

©f

endorsed the

job evaluation to correct

followed

to buttress

and their

the Steel Case.

wage

that

collective

ment.

After

decide

agree-

initial attempt to
grievances on the
Board became aware
an

these

merits, the
that

the

sheer" volume* vof

alone

cases

bargaining

would

such

overwhelm

it.

Eventually, th&Board formulated
directing the parties

the policy of
to establish
duic
s,

"grievance

handle

such

terminating in

final and

decision

private
choice.

by a
of the parties

proce-

matters,
binding

arbitrator
This

was,

perhaps, the Board's greatest
gle

contribution
and

peace

the

sin-

industrial

stability, then and

considerable

number

workers, notably in the automoindustry, were covered by
agreements running until 1955,

bile

which

provided

for

annual

pro-

ductivity increases in addition to
cost-of-living increases. The alternatives

were

risk

the

un-

World

the

latter

opened the flood gates to
pent-up
emotions on both sides.
Both labox
and
management welcomed
the

opportunity to restore the balwhich each
thought the war
period had tipped in favor of the

ance

othei.

Demonstrating

opportunism

the

same

had labor in

management

asked

1935,
Congress for

restrictions on the power and
duct of unions. The
result

Tatt-Hartley Act
sizinc

tliG

reject

collective

®
posing

ri^ht

various

con-

was

the

1947, empha-

wnrirprc

frk

bareMAtee

restriction^

™

KSSfJE
vinili lrv
-1?

+■

e+t

right to stuke,
live

"nitat,1(?n5
and maKing
making

dilQ

bargaining

these

has

four

the

major

^rceable

Taft-Hartley Act and

the Federal
courts.
The net effect of
the Talf-IIart-

bargaining

process.

The chief

example, is, of course, the limitation on the right of
employers and
iiiiions to negotiate
union

eliminated,

Th.e c.loscd

and

the

limited in effect to
of

tender

fees and

dues

maintenance
•*.

initiation

of dues.

were

—

was

shon

requirement

and

ttddJtion, the states

security

shop

union*

•

author-

V"-1

wage controls in one
another? Will government

attempt to limit economic strikes
beyond the "national emergency"

work"

II,

the

laws

the Korean

that experience throw on current
problems and various proposals
for their solution? What are the
attitudes of labor,
management
the

public

problems?

towards

those

And what about those

attitudes?
/-i

•»

(1) Jhe role of government in
I
col'":twe bargaining process
adjusted to meet
10 l'enect cnanges
,t0-,l;efle.ct
cha?Ses

dGfsrts

bargaining

ti^nTe

process

Rnm!

and

ahimP5

to
fViA

eovpmmpnt

hoc

SaSfCSHS
not

national

"right

price controls and in effect
to prohibit strikes and in
lieu thereof to
"write the contract"
for the

(2)

The

i,,e

maln^alned
Volicy

contain

the

The issue

—

not

whether

it is

demands

is who is

labor."

to assume the

responsibility, and by what meth¬
od, to appraise the justness of a

Once again, it appears that the
wage proposal in the interest of
eggheads have scored. In light of all concerned,
labor, management
the fact that awards or recom¬ and
the public.
In my opinion,
mendations by government or
pri¬ the responsibility in peacetime is
vate wage boards,
usually domi¬ and should remain that of labor
nated by scholars, have
frequently- and management and the method
been attacked as

inflationary, this

tribute is somewhat

clude

and should remain that of col¬
lective bargaining. If

surprising. In

the tribute

management

be pre¬

may

One

after

mands

convinced

given

any

case

political
in

fact

fact detrimental

unions

ful

the

these

answer

public

mavericks

"disinterested,

competent

scholars"

who

with

one

would
of

take

issue

these

con¬

iThat

means,, ;oi/

economy

not

course,

enterprise
democ¬

But we cannot eaf
and have it too.
racy.

oui*

cake<

VI.
afraid

that

the

scholars

Where Is the Proof?

going to make too much

dent

free

operating. ;in

clusions.
are

harm¬

compulsory •arbitration of contract
making disputes and / wage and
price controls, practices which are

issues, but knowing my
well, I am sure abhorrent
some

If
are

the - economy,. then
the
is for Congress to prohibit

strikes.

are

I myself take no position

fellow professors
that
there
are
among

so, and take,, a strike.
argued that strikes also

primary

all-powerful;, that the

activities

welfare.
on

de¬

wage

the

inflation; that the unions

in fact

are

study that

are

source

the

problem of

Does this analysis lead to frus¬
Is the choice really be¬

in¬

tration?

flation.

tom,

the

lems,

with

solution

action

Congress

these

with

wage-price controls and outlaw¬
ing of economic strikes on the

prob¬

required,

lies

labor

management ' themselves.

and

other?
tive

not

think

bargaining

Should

of union

garding the subject

wage

time
in

r,™™

process

the

peace

collective

•

jhumerous

control

wage

unions

over

bargain

for

and

increases

wage

to
to

reduced

legislation

so.

the

Collec¬
ef¬

most

take?

intended

calator"

vital

clauses,

have

interest in

omy as anyone else.
are

intelligent

just

stable

econ¬

I believe they

to realize
if, in fact, wages are the
prime factor in inflation and that

enough

that

particular wage increase would

push up prices to the point where
sales would drop
off, job security
would

suffer. If that be so, then
Congress, in order to "pre¬
as
reasonable men, it should be
single union from dominat¬
ing and dictating the wage terms possible to persuade them that a
in an industry," should limit
particular wage demand is infla¬
any

that

terms.

form

corresponding limitation on
the right to strike.
If the power

vent

prominent economist, speaking for part of the auto industry
has recently endorsed two
of these
general

by Congress, various
questions immediately p rescnt
themselves. What form should the

AVase-Inflation Argument

some

and

funds for political
activities,

proposals

bargaining process,

for

strike

particular
to

pany,

in¬

union

bargaining with

Rc-

that

industry tionary and should

single

union

com¬

should

bargain

Ration, he states'-

Who

Not the

be reduced.

convincing?

the

scholars, not government,

o^riy with company X,
some other
"
union, if any, let us but the men across the bargaining'
jiiclustiy, slid iii mfiny
say B, must bargain with
The
common
attitude in
others, the prime moving force
company table.
for inflation is the demand for Y, and so on? This would mean, some management quarters that
to
begin
with, that employees
higher wages backed
"it's no use talking to them" is
up by the would
lose their freedom to se¬
power of the unions."
lect unions of their choice to
regrettable.
Such resignation is
rep¬
continuing he

oui

states:

"Some say it is the
responsibilicbpuuMUUy of business to contain
the de¬
contain the
dc"
mands of labor. toThis
will not be
*4.

wil1
??ss,lble llr)td th? excessive

desiiable solution
?°
in

the

resent them.

•

to
y• i?10? ?"}• a

power

The
the

development

were

anti-mo¬

nopoly laws comparable to those

Again, unless union

be compelled

the

wage package
union A and

difficult to understand

to adopt

negotiated

of leaders of

free, according

ing

the

wage

result

levels

would

within

essential

usual competition between
unions,
to seek a better
deal. If union B

different

the

part

industry who strong¬

ly support free collective bargain¬

company X, union B

would

wage in- succeeded,

believe, be found

has
has not that govern business. These antia complete "hands off' monopoly
laws should not be

1 has intervened
har^iininrV

in*dispute*!

government
government

even in

bargaining

were

par-

law, of "union security"

hesitated to ii

ties where they

"pattern

ex! lty °i bllsl1n?ss
!risfs man^ of labo^ This

the

of nationa

for example, the

forms

otherwise,
industry¬

limiting the expenditure

«Tn

other

jec^o^

light does

and

through

crisis—taught us about the proper
role of the government in collective bargaining?
What

COrrGct

ley
..y Act was
was to
to restrict the colleccollective

peacetime
f°rm

events

Wagne7 Act*" World*War

i":

en-

the

bargaining"; (2) elimination,

experience

on tho in the political climate,
COllCC—
collec-

agreements

present
with the dangers of infla-

anti-trust

the

rOnrUim

view

including restrictions

°aSX, Stw
Mllective 1baiSnirS^roeei ?! til/e " has been
i■?
uauuuai crises,
u

tion.
first

alternative,

What We've Learned
II

fective means in a free enterprise
and other provisions bf th£ pres¬ Congress act, and if
'So, how?' If
cut law?
Congress should not act, what can economy for determining a "just"
These questions are clearly in— the
wage under all the circumstances,
parties do?
plovers and unions to agree on volved in pending proposals for
including the problem of infla¬
An appeal to
Congress
to cut
increases in
rouehlv
the
same
legislation which
include:
tion. I believe that labor leaders
(1) down the
power of unions is
really
amount, though not necessarily in curbing l a b o r's
and the rank and
"m o n o p o ly an
file, even those
appeal for government inter¬
the same form. The Board chose powcrs
! through application of vention in the
protected by cost-of-living or "es-'
the

What

War

legal immunities."

issue

responsibility of business

Certainly they will be tween
free collective bargaining
unable to
do anything
concrete
Will tins country, for the about union
resulting in inflation on the one
"monopoly power" or hand
and compulsory arbitration,
time in its history, have union
political activities. At bot¬

concern

wide

end

so.

effects
of
upsetting
agreements, or to provide
opportunity for other em—

the

Ill

The

main

stabilizing

for

Taft-Hartley Act

The
"the

designed

their monopoly power

those

future.

The

where

Poses the Issue

Questions Scholars

the

instances

difficulty ; is the that a particulars wage: demand
there is little doubt that a
pro
assumption that all disinterested, would push
up prices and is there¬
grani of wage and price controls
competent
scholars
would
con¬
fore inflationary, it ought to
would again be
say

™

Stabilization

the

those

wages

any case,
mature.

Board
placed in effect,
stabilization -And even in
peacetime, the Presipolicies of the War Labor Board
(jeht has proposed that the parties
Jra«j?. ■ ^equities, With respect
the main, with one significant
adopt a wage stabilization formula
to
fring issues, such as holidays,^
exception. In addition to "coststrikingly similar to that develvacations and the like, the Board,
of-living" increases and increases oped by the War Labor Board
and
attempted to follow industry and
necessary
to correct "gross in- the Wage Stabilization
area practices.
Board,
/v..
Board recognized!' Despite the gradual extension
The same wage policies were equities," the
increased productivity as a justi- of
government
intervention
in
applied, in the main, to voluntary
fiable basis for across-the-board collective
bargaining, labor and
agreements and to disputes. Disincreases* A variety of factors led management still retain
considerpute cases, of course, also
in- |0 Sllch
recognition. Among these able autonomy in the collective
volved numerous "non-economic"
Were first, the feeling that a combargaining process, including the
issues, such as seniority and the
pie to "freeze" of real wages would right to strike and to resist.
like.
Wage
Many of the disputes connot be equitable and was not readjustments, for example, are still
cerned
issues in
the nature of
quired in the existing state of the a matter of free
bargaining. The
grievances, involving the meannational emergency and, second, question is how
long it will re¬
mg or application of the terms of
the Board

litical activities of unions

and

'• dation

•'

/•

lem

Sta-

/,.,/

then?

important
contributions.
power
They can ascertain and publish to strike, is
management, too; to
facts regarding wage demands— be "cut down to
size"? In a
period
and the power of the unions to of
deflation, is management to be
enforce them. They can appraise told that its
proposed increase is
the importance of wage demands too little?
Is the growth of
assoin price inflation. They can offer ciational
bargaining among em¬
suggestions for solving the prob¬ ployers to be reversed?

limiting

d®®,

the power of management to
resist
is greater than the union's

make

emergencies, "

hod

happen after tbe unions have been
"cut. down to size"? Who is
then
to determine, and by what
stand¬
ard, what, amount of wage ,in-

out-stripping pro¬
to public policy, and laws i
ductivity and thus pushing up
ting injunctions in certain labor prices. They can appraise the po¬

v>e,_

unhappy, because. to recommendations by the Boai d

and

ta:in

uncer-

Wage

the

management, m
strongly opposed to
in-.government control

necessary

railroads

2?.-rnts
/
l
«»*i»
bWzation
accepted t^h™™Uon
ot&owLileluctantly.Board^were
As
administered

over

wages, which
suggested, what is to

has

one

■

law

+Vvi,

wage

wcic

We have

strikes in "national

tainty. They were prepared, as in
regulations any military crisis, to make neceswere based on two major consid-.
saiy - sacrifices, • but were not so
erations:
first,/ that across-the- sure what sacrifices were necesboard wage increases should be
sary.
Wage and price controls
The

crease is too much or just
enough?
problem of first magnitude. It is Suppose that an atomized
union
a simple
still
has sufficient
problem; nor are the
striking power
precise 'solutions to it easy ta to demand and obtain an
"infla¬
specify. .•'■.//'/; v ;* C
tionary"
wage 'increase?
What

Federal

prohibits strikes
putes.- We have

agreements.
.r

lateral control

/
will

action

not

which imposes compulsory arbitration of grievance disputes on

and

Labor

mercial contracts.

the

economic

"This is a field in which dis¬
lawsuit,
treating them like ordinary com- interested, competent scholars can

collective

the

line

every

which make labor agreements en-

forceable

The Korean Crisis

the

other

any

bargaining, which regulate
procedure, which limit bargaining on certain subjects and

government in
bargaining processduring the Korean crisis was a
> curious one, reflecting the uncercommon issues in dispute cases had
tainty of the nation as a whole
to be uniform for the most part., as to the
degree of the danger inThe inevitable result was a con- 'volved both on the
military and
collective

industry. ' "

"One

its

"rxr.

terms

lective

Taylor

lipim

Thursday, January 9, 195B

•'

time since 1932, be necessary—limitation on politi¬
likelihood of cal activities of labor unions and
intervention. ; We now of organizations interlocking with
have statutes or judicial interpre- them...
"ii;tations thereof which compel col"Wage '/inflation
is/, a public

pulsory unionism. As a result, soand Edwin E.'witte, firm believ- called
fright to work'; laws were
ers in collective
bargaining, at the subsequently enacted in 18 states,
George W

ri'.

•

increased

Bargaining

Fortunately with

'•

prevent a single union from it in a particular case?
Unless
dominating and dictating the wage management is to be given
uiih

greater de¬
intervention

legislative

•

will

today than at
and

In Collective

♦

Indeed,7 there is

•

and has limited the right to

ways

page

•

a
i

free

enter-

prise economy.

To repeat, I cannot believe

labor would continue

the

that

to insist on

same
industry, a departure, in the a wage demand which can be
main, from the practice followed demonstrated to be inflationary bi

the

mass

production

industries

before the advent of
unions.
based on some abstract concept ■> Other questions
may properly
maxinium competi- be asked. How much power is too
tion of workers for ,iobs, but rather much
power? Where is the line
en, some workable: concept . that to be
drawii <md_who is to draw

fact.

even

recognize

management's

difficulty of proof, but if it be a

f^uirWg the

fact,
-

proof,
it

should

susceptible of

no matter how

matter

difficult. If

judgment only*

•

{

Number 5706

187

Volume

♦

•

' '

The Commercial and Financial Chronicle

(129)
the' whole

then

loses

argument

fiably reluctant, in
face

significance.

problems
table.
The

gaining

ried to

suggest, then, that what is
needed is less reliance on govern¬
ment in collective bargaining, and
more self-reliance'by the parties.
I

greater
self-confidence on the part of
management, if convinced it 'is
iright on a particular wage issue,
in'presenting its facts and argu¬
'particular,

bargaining

the

ments

emphasis

suggest

table;

the price and

• on

quality problems of the particu¬
company or
industry rather
thaii generalizations on the econ¬

extreme.

the

bar¬
doctrine
of

"existing benefits" has been

What We Need

many cases,

these

car¬

It is the obli¬

gation of responsible labor leaders
to

appraise management's demand

this

area

dispassionately

and

whole; and, above all,
greater confidence in the reason¬
ableness of people on the other
as

character
well

process

of give

the facts have been established.
While the price of labor

portant, I suggest that what man¬
agement gets for that price is
equally important.
Here lies a
fertile field for constructive bar¬
con¬

elimination

witlr the

cerned

Management

gaining.

restrictive

practices, where they
exist, which bear on cost and
quality. Management is likewise
properly concerned with the mod¬
ification
of
contract
provisions

which, whether or not sound when
originally negotiated, have proved
to be uneconomical in the light of
changed conditions and unneces¬

sary
lor the protection
workers. Labor has been

Continued

from

the

unjusti¬

parties making the demands are
asking Congress to "cut unions
down to size."
./T
'

The fact

a republic
anything they
really want to control.

the citizens, control

If large numbers of citizens are

;;

convinced
and

business

that

evil

it automatically
follows that large numbers of leg¬
dangerous,

islators,

senators,
congressmen,
members of state legislatures, and
city councilmen will try to derive
political
advantage
from
that
emotion.
Conversely, if the gen¬
eral

public

about

business

"that

both

employees
that

management
work

and

together

is ren¬

of its greatest services

one

to the nation if it makes available
to

its

accurate

readers

sonably

complete

must, of

and

rea¬

about
This news

news

business and industry.

be gathered and

course,

written by reporters who

in¬
telligent, informed, and unbiased,
are

and edited and headlined

with those

Paint

by men

the

that the

business will be

con¬

trayed

want

por¬

something it is not.
Industry, which consists of peo¬
ple, has its strengths and weak¬
nesses, like any public group. In
fact, industry embraces a suffi¬
ciently large share of the popula¬
tion so that it has just about the
as

characteristics

same

the

gen¬

eral

public, in just about the same
proportions. It has good, sensitive,
honest, hard-working people and
crooked, weak, selfish, or venal
people in about the
tions

same

propor¬

the

public.
The fact is
that people in business, large or
small, are just like people who
are

not in

business, so far as their
abilities, ethics, and human char¬
acteristics

go.

The danger is that business and

industry
public

may

the

judged

basis

by
the

the
un¬

pleasant exceptions. And here, if
the press is to perform its max¬
imum service to the people, it has
more

than

the

duty to report.

has also the duty to interpret,

and

ready

create

them

has

States

again

once

the
<

focused

national

undeniable

at¬
fact:

the

chips are down, you
must have the organizations that
can produce the
required results.
You would have to have
I have

said,

them,

if they

even

base

in¬

people in small companies.
But
they aren't, as I have said. It is
just that there are more of them.
Let

give you a comparison
will, I hope, make my point.
me

that
If

two

people have invested
each in their own small

$5,000

favor, for it has

bigger,
or
stronger,
or
brighter, or more persuasive than

emer¬
•

Sputnik has done the

way,

United

after

arisen.

were

as
as

and the company earns
profit of 10%, the equity of each
be $500.
This is, inciden¬

effectuated

through

full

through improvement of

between

large and

small

the processes of collective bar¬
companies. A large company dif¬
gaining, rather than through in¬ fers from a small one, not in that

tally, quite

lot

than the

percentage

governmental

tion.

interven¬
v'V

its

employees

eight feet tall

are

It occurred to

I have in mind.

First, let's take a look at what
may well prove to be the most
important question of our time,
so
far as business and industry
It

concerned.

are

the

much

debated,

much
misunderstood
question of bigness in business.

stockholders

large
and

differ

mainly

company

small

has

diversified talents than

kind

It is

important that the people
who are continually being called
to make decisions that will

upon

affect business and

should
for

selfish and

were as

critics say

still

have

evil

are,

have

cannot survive

without them.
stated

they

them,
nation

While it is seldom

these

terms, I believe
point on which there has

this is

come

substantial

public

agreement.
I'm not

sure

general
so.

understand

I'm not

sure

ize that the size of
dictated
tude

whether peo¬

why

they real¬
is

company

basically by the magni¬
job to be done. If it

of the

ize

that

large

the

and

differences

small

itative.

My third point about bigness is
that big
companies as a group
expect to be around for a while.

small and rather

convinced

them¬

accomplish
this objective is to treat people
fairly and decently, whether they
be customers, suppliers, employ¬
ees,

Lake Pontchartrain.
a

A PT boat is

handy thing for ambushing en¬
transports. But it can't carry
to attack enemy installa¬

emy

planes

You'

must

the large and

-have

the small.

both

the

structive

less

before

taxes

light

were

these

did.

The graduated corporate income
tax is a formula for destruction.
will
work
while
we
sleep,
quietly pull our whole system to
pieces, and make a present of the

free world to the communists. Let
make this clear: I do not ques¬
the loyalty, the honestly, the

tion

sincerity,

stockholders, or neighbors.
this, quite as much as the

possession

of
larger
resources,
that has made big companies out¬

standing in the amount of study
and work that goes into improv¬
ing employee benefit plans; in
trying to give the customer just

the

intentions

good

of those who back such measures.

Unfortunately,

won't/

matter

whether they are sincere or mean

well, if they bring calamity
us.

■

upon

turn

these

This

one,

yet
or

to another one

specific problems.
far as I know, has

epitomized in a word
phrase, but it has many peo¬

ple

now

confused.

is the question
capital in our in¬
dustrial progress.
This ties in
with profits, wages, and
prices,
and is one of the favorite hunting
of

the

role

grounds

the

labor

union

of¬

Let
when
the

put it to

cellophane

market

this way:
first put on

you

was

the

20's, it had
to sell for about $2.65 a pound,
and it was good only for decora¬
tion.

It served

Today's

useful purpose.

cellophane,

which

moistureproof and serves many
wants, at the lowest pos¬
very
useful purposes,
sells for
price; in trying to see that about 62 cents a
pound.
It has
stockholders share fairly, opposite
made
possible
the
self-service
employees and customers; in try¬
selling of food.
ing to be good citizens in the com¬
The same thing is true of
many
sible

themselves up
economic units, thus

into smaller
getting the

benefit

rates.

But

the

lower

tax

approach to the public
advocates of the
graduated
corporation tax is not always as
candid as that. Mostly it is based
by

products made by
ies.

many compan¬

But where the debate

here:

who

comes

responsible for this
Is it labor? Do the peo¬

progress?

ple in the plants work harder or
longer than they did in the early
days of manufacture? Not at all.
As

matter

of fact,

it is almost

universally true that they do not
have to work
And

why?

instead

hard

The

human

power,

long.

is that

answer

use

mechanical power; our tools
the
immensely

more
are

complicated

and

costly plants developed by
industry through tech¬
nological research.
The
money
to buy the tools—these plants—is
mostly furnished
by investors
modern

who

have

saved

instead

In the face of this sort of

it is ironic to find that

And

ple regard the investor
of

parasite

man.

who

sucks

sort

the
by
the
working
The plain fact is that if it
up

created

were

not

tools

and

for investors, and the
technologies they have

are

and

un¬

in which

areas

industry

put

all

this

against

can

that

our

his¬

put

and

our

sort.

situation

are

which

that

nothing less
bring us through
The penalties that

best

can

nation.

1 oil

social,

time

110

certain

our

severe

brake

periods in

failure will

bring do not need to
be spelled out to anyone who can
remember the aftermath of Hun¬
gary's attempt To be free of
munist
It

com¬

domination.
to

seems

the

that

press

this

the

duty

situation

clear and pressing. It must
extraordinary
efforts
to
stimulate popular interest in and
very

make

understanding
tions

this

which
such

the

of
time.

our

key

How

ques¬

cloes

matter of techniques

have

things lie in

not in mine.

since

answer,"

field and

your

only know that all

known ways are needed and that
no
one
else can do it as well as
the

American

Events

press.

are

confronting us as a
nation with the necessity for look¬
ing the realities of life in the face.
One

the

treat

effective

most

stimulating

that

the

adults.

ways

development

American

There

people
simply is not
juvenile

time to flatter them with

tributes

American

genius and
and American
The world will judge

might

our genius and our
might and our
greatness by what we do and not
by what we say about ourselves.

For that
or

die

matter, we shall survive
by,,tjie same.criterion, and
vital that nobody deceive

American
this.

and

men

have

nothing

about

women

*v'"

-1

,'t

'..-/Mf

against

comic

strips, sports pages, and Broadway
gossip columnists. But now more
ever

before,

entertainment

cannot be the dominant objective
of

The

newspapers.

of the

purpose

overriding
must be

press

inform,

to instruct, to teach, to
persuade. I know it isn't easy to
hoe

such

a
row, especially in
rising costs.

era

My
must

And

is:

answer

done.

sion of all

easy

Not

the

not,

exclu¬

else, but in proportion.

you

can

teach

but

one

thing, then I would have it this:
that

the

tered

pages

with

the

of history are lit¬
bones

of free

na¬

tions

that, through complacency,
indifference, and ignorance, al¬
lowed their strength to be drained.
Each
time
it
has
happened so
gradually that it was impercepti¬
ble to their citizens.
And then,
when the crisis came, there wasn't
any strength left, or not enough.
If
can

powerful
convince

journalistic
the

voices

American

peo¬

ple that they have no divine im¬
munity from this sort of thing, if
they can convince them that it

happen here — that it may
actually be in sight—then I am
can

sure

beat

peo¬

public

can
and
equated with misunder¬

brakes

will

but

not.

For

one

can

ourselves.

Joins David Noyes
(Special to The Financial

thing,

some

briefly today

which

economic, scientific,
military progress.

spending it.

blood

standing.
Misunderstanding, in
turn, if not corrected, is certain
to lead to public attitudes toward

than

ficial.

what he

break

must

greatness.

Role of Capital
me

of,

understanding

American

Let
are

mostly quantitative, and not qual¬

they- have

receive

will agree that
the analogy doesn't look as hon¬
est, or as. convincing, or as con¬

between

companies

simple job,
like running an automobile serv¬ munities in which they operate.
ice station, not much capital, not
This matter of bigness is one
many people and tools, no very of those broad, general questions,
exceptional skills, are required. and I could continue to discuss it
But if it is a company that makes for a long time. But I'd like now
the gasoline that is sold, or the to turn for a few moments to a
automobiles that are serviced, it couple of specific problems.
I
takes great teams of men, brains, have already referred to the idea
of
a
money, and tools to do the job.
progressive income tax on
When one thinks about it, it is corporations, so let's get back to
clear that in this case, as in al¬ that.
most all cases, the small comple¬
ments the
large, and the large Progressive Corporate Income Tax
the small.
Each does the job it
Backers of legislation to estab¬
is fitted by its size and talents lish such
a
tax
admit
that
it
to do.
would, among other things, tend
The pattern is not unique to in¬ to force the "voluntary dissolu¬
dustry.
A comparatively small tion" of big companies. It would
bridge can cross a comparatively accomplish this by putting them
small stream.
But a huge struc¬ under a heavier tax burden, pro¬
ture is needed to bridge the Hud¬ portionately,
than smaller ones,
son River, or the Golden Gate, or
so
that
it
would pay
them to
a

per

industry real¬

selves that the way to

their

would

its

It
a

people

one.

big business.
as

•-

that

They are the same
people, motivated in the
same
way,
with the same
strengths,
weaknesses,
hopes,
fears, likes, dislikes.
a

And

panies

And

dividends, although the profits
the

less hon¬

higher

with the in¬

one

$10,000.

you

three I want to make to you about

Even if large com¬

much

identical. ; In

They

be helpful if I discussed rather
briefly a few of these general and
specific questions,
so
that you
would not have to guess at what

bracket than the

same.

figures, I hope

like to have done unto them.

that it might

the

was

These

lack

than

corporation

mentioned

areas

course.

that company earns a
profit of 10%. The equity of each
of the 2,000 investors would be
$500, assuming the tax on each
and

But

province

derstanding badly needs, to be im¬
proved.
There are others, of

tory,

they

honest,

I have

three

profit for
big or small. Suppose
now
that 2,000 people have in¬
vested $5,000 each in a large com¬

instead of five feet 10; ndt in that
are more

agrarian

and
im¬

Misunderstanding Stops Progress

business,

creased

portant

prosperous

suspect, the German Reich.

business

pany,

rather small,

especially

enough

would

vestment

be
and

use

not

average

should quite possi¬

bly be today

company,

ference

best

can

tions.

telligent judgment.

trained

analogy might be valid if
people in large companies

were

provided,

*.<v;,h

This

would

agree,

aircraft carrier and the PT boat—

sizes

graduated

ethical point of view, I do not
think there is any significant dif¬

would

that the public will truly have the
which

event, this much is clear:

most -scholars

information

taxed

graduated corporation
tax scale, the corporation with the
total investment of $10
million

ple

It As Is

not

does

analogy: if individuals

basis, then why isn't it fair and
right to do the same to corpora¬
tions, which are, constructively,

tinuously successful." Though dif¬ pernicious as their worst critics
will
inevitably
arise, say they are.
"there is no reason why these dif¬
ferences cannot be peacefully and
•y.;-\f
No Perniciousness
And that brings me to my sec¬
satisfactorily adjusted by sincere
and patient effort on both sides." ond point, yhich is: they are not
Such a philosophy, with which pernicious at all. From the moral

this is

what

ferences

But

Industry does not ask for a halo.
It wants only to be painted as it
is.

tention

quality and cost of
the product will prove increas¬
ingly satisfactory and. attractive

qualities.

same

size

for any job that comes along. In
this troubled era, there isn't time

when

dering

the

have got to have the teams

various

the

something
Bigness in Business
and.. infljiptry, and
• The
truth is that we must have
thinks well of them, then you can
large, companies if we are to sur¬
be
sure
that large
numbers of
vive,
This: is the first, point of
politicians will feel the same way.
press

according

In any

the

knows

It follows that the

sizes,

est; or that in their daily dealings
they are more, or less, concerned
about doing unto the people with
whom they deal, as they would

that in

various

are

the

tionship, it has been said, requires

decision, and results flow from

it.

out

woven

this

upon

citizens?,;;.

Conclusion

A sound labor management rela¬

Understanding Industry's Role
of

our

ment",.77- and that is what I,am

gency

page

varying

take. Unions

take

end

is im¬

fabric

smallest,
whole

very

business,

needed/to do the job. ,It. has been
said that; "teamwork by agree¬

are not
likely
kindly to such demands,
however, if at the same time the

side of the bargaining table after

economic
teams

the

for

one-man

sympathetically, if collective bar¬ talking about—is mankind's
great¬
gaining is to retain its essential est
discovery, It may be so.
/

lar

omy

Except
the

Chronicle)

CHICAGO, 111.—Merle C. Drips
has

joined the staff of David

South La Salle
Street, members of the New York
and Midwest Stock Exchanges, JRe
was previously with the First Na¬
Noyes & Co., 208

tional

Bank of Ottawa.

Financial Chronicle

The Commercial and

(130)

Thursday, January

★ INDICATES

Securities
Alabama Power Co.

Now in
.

Nov.

& Co.; Lehman Brothers; The First Boston
Blyth & Co., Inc., and Kidder, Peabody &
Co.
(jointly); Eastman Dillon, Union Securities
& Co., Equitable Securities Corp, and Drexel & Co.
(jointly); Harriman Ripley & Co. Inc. and Goldman,
Sachs & Co. (jointly). Bids — To be received up to 11
a.m. (EST) on Jan. 16, at Room 1600, 250 Park Avenue,
New York 17, N. Y.
Stanley

Corp.;

(Walter H.)

Allen

stockholders. Price—At par
—4Tor construction of

addition to present building.

unsecured debentures, due Nov. 1,
a new

Office—6210 Denton Drive,
—None.

Dallas, Texas.

Underwriter

16 filed 256,300 shares of class A common stock

—Fargo,. N. £>. Underwriter—None.
American Mutual Investment Co., Inc.
Pec. 11 filed 490,000 shares of .capital stock. Price—$10.20

Dec.

develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,

Feb. 15 filed 50,000,000 shares of common stock (par one
cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposes. Office—Dallas,

Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are

common

stock

14,700 shares of class B

(par $1).

Price—$12 per share. Proceeds
stockholders. Office — 700 N. 44th
Street, Birmingham, Ala. Underwriters—Courts & Co.,
Birmingham, Ala.; Wayne Hummer & Co., Chicago, 111.;

—To

and

selling

Merrill Lynch,

Pierce, Fenner & Beane, Birming¬

ham, Ala.

par

8. A., Inc., Phoenix, Ariz.
30 filed 85,000 shares of common stock. Price—At
($3.75 per share). Proceeds—For investment in sub¬

sidiary and working capital.
curities. Inc., Phoenix. Ariz

Underwriter—Selected Se¬

★ Atlas Sewing Centers, Inc., Miami, Fla.
6 filed $1,500,000 6V2%
convertible subordinated
debentures, due 1973. Price—Par. Proceeds—To increase

Jan.

inventories,

expansion, and reduce bank debt. Under¬
writer—Van Alstyne, Noel & Co., New York. In addi¬
tion, company has agreed to sell to underwriter, for
$2,500, stock purchase warrants entitling holders thereof
to purchase up to 50,000 shares of common stock
on or
before Jan. 1, 1963, at a
price to be supplied by amend¬
ment.

Preferred by both!
impact A\hen you advertise securities in the
Chicago Tribune. It is the newspaper preferred in
Chicago
and Mid America by professional investors and the
general
public. No other newspaper here commands such
great in¬
fluence and circulation. To sell the
prosperous midwest market,
your nearest

Chicago Tribune representative today.

(Efjirago Qtibnne
THE

filed

(120)
of 30-year notes, series

due

Canadian

Sept.

WORLD'S.

America's

most

GREATEST

NEWSPAPER

widely circulated market table

pages

loans

common

Office

Explorers, Ltd.
notification) 600,000 shares of

Price—50 cents per share-U. S,|
exploration and drilling costs,"

Suite 607, 320 Bay
St.,

—

Formerly Tybor Stores,
Co., Boston, Mass.

Inc.

—

Lerner

Check Printers, Inc.
Aug. 28 (letter of notification)
25,000 shares of common
(par $1) to be offered to employees and present
stockholders. Price—$11.80 per share., Proceeds—To ac¬
quire

new
machinery and equipment. Office — 530 N.
Wheeler St., St. Paul 4, Minn.
Underwriter—None.

Disc, Inc.,

Washington, D.

$1).^ Price—$2.50

Business—Purchase and development of real
property,
acquisition of stock of business
enterprises. Under¬
writer—None. Irving Lichtman is President and Board

Chairman.

Price—To

struction

expansion

and

the

Beach, Fla
Under¬
Corp., New York. Offering-

any

one

Clifton, N. J.
Doctors'

are

general

for

common

each

four

amendment.-

corporate

purposes.-

Office —

and

Sanford, Me.

($15

are
are

share).

per

;

stock

divi¬

bank loans.

Un¬

Dow Chemical Co.Nov. 25 filed 84,121 shares

to be issued

presentlv outstanding. Phce
Proceeds—For construction

operation of motels and to
repay

derwriter—Nonef

which
shares

exchange for $432,055 outstanding 6$

dend and 30,850 shares
par

held.

Proceeds—For

Motels, Inc., Kansas City, Kan.

to be offered in

—At

$1) to

stockholders at

Underwriter—P. W. Brooks & Co., Inc.,

debentures, 3,085 shares

time.

Statement

new

supplied

(1/20-24)
stock {par

Oct. 25 filed 500,000 shares of
common stock, of
426,497 shares are to be offered
publicly, 39;568

common

July 5 filed 248,132 shares of common stock
(par 10C).
Price
At market.
Proceeds—To selling stockholders.
Underwriter—Ghck & Co., Inc., New,
York.

common

rate

New York.

(par $1—Canadian).
Price—50 cents per share.
(U. S. funds). Proceeds—For exploration
costs, etc. Of¬
fice—5616 Park Ave.,
Montreal, Canada. Underwriter—
Jean R. Veditz Co.,
Inc., 160 Broadway, New York.
Aircraft Corp.,

Dixon Chemical &
Research, Inc.

Office—Miami

stock

common

and

Dec. 24 filed 165,625 shares of
be offered for
subscription

Chess Uranium Corp.
May 14 (letter of notification) 600,000 shares
of

stock (par
Proceeds—For investment.

per share.

Central Mortgage & Investment
Corp.
Sept. 12 filed $5,000,000 of 20-year
mortgage bonds and
500,000 shares of common stock (par five
cents) to be
offered in units of $100 of bonds and 10
shares of stock.
Price—$100.50 per unit. Proceeds—For purchase of
first
mortgages or to make first mortgage loans and for con¬
Securities

Oct. 10 filed 400,000 shares of
class A

Name Change-

Underwriter

—

DeLuxe

(par 50 cents) to be offered for subscription
by
stockholders. Price—52 cents per share. Pro¬

ceeds—For general corporate purposes.

Price

stock

common

effective Aug. 10.

•

common/

market (approximately 53 cents per
share). Proceeds—To selling stockholders/ Underwriter
Herrin Co., Seattle, Wash.

Caribe Stores, Inc.,
Aguirre, Puerto Rico
Dec. 2 (letter of
notification) 247,560 shares of common

Colonial

N,:Y,|
j

Ithaca,

Daybreak Uranium, Inc.,
Opportunity,'Wash.
7 filed 631,925 shares of common stock
(par 10

(par

Canadian Export shares
outstanding. Underwriter—None.
Statement effective Nov. 4.

Offering—Expected at

—

Toronto, Ont., Canada,
Underwriter—Stratford Securities
Co., Inc., 135 Broad¬
way, New York.

to be offered in exchange for capital stock
Export Gas Ltd. on the basis of 2V2 Cana¬
dian Prospect shares for each
Canadian Export share,
subject to acceptance by holders of at least 80% of

Date indefinite.

Office

Octs' 28 (letter of

cents).

stock

subsidiaries; to reduce bank

May
shares

Pro-

for

Associates, 1511 K St., N.W., Washington, DC.
(
Cooperative Grange League Federation, Inc.
Sept. 27 filed $600,000 of 4% subordinated debentures
due Jan. 1, 1966; 10,000 shares of
4% cumulative pre¬
ferred stock par $100; and
150,000 shares of comnion
stocky (par $5). Price—At principal amount or par value.
Proceeds—To finance inventory
purchases, -.to make cap¬

stock (par
$1-Canadian).
funds.V Proceeds — For

(in units of $250, $500 and
For purchase of
mortgage bonds.

4,851,810

business.

and

working capital.
Change in Name—Formerly People's Finance
Corp. Of-1
fice—Denver, Colo. Underwriters—S. D. Fuller & Co.,

Cubacor

par

16% cents)

stock

bank

ital loan advances to retail

Prospect Ltd., Calgary, Canada

filed

Price—To be supplied by amendment.
reduce

loans; and for working capital.
Underwriter—None.'
-

Mortgage Bonds, Ltd., Englewood, N. J.
Sept. 3 filed $1,000,000 of 8% mortgage bond trust cer¬
$1,000). Proceeds —
Underwriter—None.

filed

Mining & Oil Corp.
(letter of notification) 250,000 shares of common
(par 10 cents). Price—$1 per share.. ProceedsFor, mining expenses.
Office—1500 Massachusetts Ave¬
nue, N. W., Washington, D. C: Underwriter—E. L. Wolfe

Canada

Finance

Corp. of America
$1,000,000 of capital notes due Feb. 1,
(with detachable class A common stock purchase
27

stock

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; and Coffin & Burr, Inc. and
F. S. Moseley & Co. (jointly).
Bids—Expected to be re¬
ceived up to 11:30 a.m* (EST) on Jan. 20.

—

Kook

Continental

tion program.

Price

Underwriter—H.

Dec. 9

Proceeds—To repay bank loans and for construc¬

tificates.

Cuba.
.

York;' and Paul C. Kimball & Co.,' Chicago, 111.
Offering—Expected first week in February.

Corp., Far Hills, N. J.

$4,500,000

Office—Havana,

Co., Inc., New York.

New

Cambridge Electric Light Co.
9

—

ceeds—To

Underwriter—Cador, Inc., Far Hills, N. J.

1988.

basis of one new share for -each four
Price—To be supplied by amendment. ProFor exploration activities and capital
expend¬

warrants).

(par five;
cents), of which 1,600,000 shares are to be offered in
exchange for oil properties located in Oklahoma, Texas,,
New Mexico, Louisiana, Kansas.and
elsewhere; the re¬
maining 80,000 shares are to be issued as commissions/

Dec.

the

Consumer

163,500 shares of common stock (no par)
exchange for outstanding common stock

writer—Aetna

You get double

see

eeeds

itures.

of Canadian

Anita Cobre U.

Sept

■

shares held.

Dec. 16 filed 1,680,000 shares of common stock

New

(letter of notification)

20 filed

Cador Production

Tex.

holders

1973

MacGregor Sport Products, Inc. at rate of one share
of BBC stock for each share of
MacGregor stock. The
offer is subject to acceptance by holders of at least
90%
(147,150 shares) of outstanding MacGregor common
(which condition may be waived by BBC if offer is
accepted by at least 80% of outstanding MacGregor
stock). Underwriter—None.

1201

Anderson Electric Corp.

Corp,::A>'y::^;

Dec.^17

to be offered in

American Provident Investors Corp.

Dec.

Chicago-'
Consolidated Credit

Brunswick-Balke-Collender Co.

share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may

$100 principal amount of debentures for each nine
held; rights to expire on or about March 12,
1958. Subscription warrants are expected to be mailed
on or about Feb.
7. Price—100% of principal amount.
Proceeds —For advances to subsidiary and associated
companies; for purchase of stock offered for subscription
by such companies; for extensions, additions and im^
provements to company's own plant and for general
corporate purposes. Underwriter—None.

Dec.

per

:<•

Brantly Helicopter Corp., Philadelphia, Pa.
3
(letter of notification) 21,818 shares of common :
stock (par 50 cents). Price—$13.75 per share.; Proceeds !
—For equipment, supplies and working capital. Offices
—24 Maplewood Ave.,
Philadelphia 44, Pa., and Fred¬
erick, Okla. Underwriter—None.

share. Proceeds—For capital and surplus accounts. Office

by competitive bidding
Halsey, Stuart & Co. Inc.; The
First
Corp;;: Glore, Forgan & Co. Bids—To he received
to 10:30 a.m.h(CST) on Jan. 14, 1958, at.Room 1820

Boston

$
,

be determined

Probable bidders:

Nov. 25

the rate of one new share for each two shares held; un¬
subscribed shares to be offered to public. Price—$10 per

American Telephone A Telegraph Co. (2/7)
Dec., 31 fij^d $718,313,000 of convertible debentures to
be offered for .subscription by stockholders at the rate

derwriter— To

amount of 5% first and re¬

American Life & Casualty Insurance Co.

Jhairman, Vice-Chairrnan and President, respectively.

filed

Dec.

Dec. 3 filed 101,667 shares of common stock (par $1) to
be offered for subscription by common stockholders at

REVISED

<•.

(par one cent), of which 233,000 shares are to be sold
for .account of the company and 23,300 shares for the
account of Ben Degaetano, President of the underwriter,
price—$1.50 per share. Proceeds—For working capital
to be used in realty financing activities. UnderwriterMidland Securities, Inc., New York.

D, C.
Underwriter — None.
Sheldon Magazine,
Highland Drive, Silver Spring, Md., is President.

ITEMS

(letter of notification) 15,000 shares of
$140
cumulative sinking fund preferred, series A
{par $20)
New York City.
/•.
with warrants to purchase 15,000 shares of class
B com-]
Blacksmith Shop Pastries Inc., Rockport, Mass. / mpnYstdek $par:;$F)^ to/b^
ferrect /share/and /Phe ^Warrant/ Price
Sept. 17 (letter of notification) $100,000 of 6%% deben¬
>-per- tinit'
Proceeds W For working••bapital- " Office ^'318
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and
Johhstoa
Bldg;]/Charlotte;:3sT:/C; ^deTwriterLjJ/^
40,000 shares of capital stock (par $1) to be .offered
in units of one $50 debenture and 20 shares of .capital r Richmond, Va. Offering—Expected this week./
3-' '3 ?
stock. Price—$90 per unit.
Proceeds—To retire mort-.
Consolidated Cuban Petroleum Corp,
gage notes and for working capital. Underwriter—Mann
Dec." 30 filed 500,000 shares of common stock
(par 20
& Gould, Salem, Mass.
;
:
•
>
^
cents) to be offered for subscription by common stock¬

Allstate Commercial Corp., New York

Sept.

retire equal

Proceeds—To

(letter of notification)

PREVIOUS ISSUE

Commerce

■;/,

funding mortgage bonds which have been called for redemption on April 1, 1958. Underwriter—To be determined by competitive bidding. Probable bidders: Halsey,
Stuart & Cp. Inc.; Morgan Stanley. & Co.;, First Boston
Corp.; White, Weld & Co; and Eastman Dillon, Union
Securities & Co. (jointly). Bids—To be received until
11 a.m. (EST) on Jan. 28, at Room
2315, 195 Broadway,

Co., Inc.

$150,000 of 10-year 6%
1967, to be offered to
(in units of $1,000). Proceeds

Nov.

Corp., New York

(letter of notification) $300,000 of't>% 5-year
convertible sinking fund debentures (subordinated) due

filed

ADDITIONS

SINCE

Oil Refining Corp.
:
3
$25,000,000 * of first- mortgage-^bonds dim
Sept. 1, 1968, $20,000,00 of subordinated debentures dim
Jan. 1, 1963 and 30,000 shares of common stock (par one
Oct. 1, 1968 and 3,000,000 shares of common stock
to h*
cent) to be offered in units of $100 of debentures and 10 : offered in units as follows: $1,000 of bonds and 48
share*
shares of stock. Price—$100 per unit. Proceeds—To re¬
of stock and $100 of debentures and nine shares
of stock
tire bank loan and for working capital.- Business —
Price—To be supplied by amendment.
Proceeds A
Manufactures and rents commercial coffee brewing ma¬
construct refinery. Underwriter—Lehman
Brothers New
chines.
Office—515 Madison Ave., New York. : Under¬
York. Offering—Expected in January.
writer—Willis E. Burnside & Co., Inc., New York.
•
Commonwealth Edison. Co. (1/14) /
/
:
Dec.) 19 filed $50,000,000 of sinking fund debentures
*Bell Telephone Co. of Pennsylvania (1/28)
due
Jan. 2 filed $50,000,000 of debentures due Feb. 1, 1989.
Jan. 1, 2008. Proceeds—For construction
program, Tr.
Bamm

(1/16)

$23,000,000 of first mortgage bonds due
1988/ Proceeds—To finance construction program. Un¬
derwriter — To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan,

Dec.

Registration

•

1958

of common stock (par $o)»
issuable upon
conversion
of the
$4,000,000 4% sub¬
ordinated convertible debentures
due June 1, 1980, orig-

Number 5706

187

Volume

The Commercial and Financial Chronicle

Famous Virginia Foods Corp.

inally issued by The Dobeckmun Co., the
which was assumed by Dow Chemical Co. &;s
1957.
These;
compcmies*

liability of
of Aug. 31,
by three insurance

debentures are held

Nov.

Office—922

First International Fire Insurance Co.

;

Aug. 26 (letter of notification) 100,000 shares of

stotgc (par $1). Price
American

Precision Corp., Arkadelphia, Ark.
:l
(letter of notification) 60,000 shares of common

For

Corp., Washington, D. C.
—

Underwiiter^Nunn^Gfdves; Co., Little Bock, :.Ark.

purchase
&

Ex-Cell-O Corp., Detroit, Mich.y*

Chucking-'Grinder Co. of. Springfield,5 Va.; at rate of
four-tenths of an Ex-Cell-0 share for each full Bryant
share.: Offer; will become effective "Upon 'acceptance by
holders of not less than 209,000 shares (95% ) of all com¬
mon stock of Bryant outstandings
Underwriter—None.

-*•

Expanded Shale Products IncV---

•• •'

Mee * &

Underwriter—Minor,

Co., Albuquerque,

Underwriter—

26 filed

be named by amendment.

Sol Goldberg is President.

Ford Home

•

Nov.

Leases, Inc.
'
(letter of notification) $250,000

sub¬

ordinated debentures due Jan. 1, 1968 and 12,500 shares
of class A common stock (par $1) to be offered in units
of a $100 debenture and five shares of stock. Price—

unit.

per

homes.

corporate purposes.

Office

—

Business—Financing of

McDonough,

Underwriter

—

Philipson & Co., Utica, N, Y.
Forest Laboratories, Inc.
Aug. 28 filed 200,000 shares of capital stock (par 10
cents). Price—$2.50 per share. Proceeds—For sales pro¬
motion

of company's
products, working capital, addi¬
inventory and accounts receivable, for research
development and for other general corporate pur¬
poses. Office—Brooklyn, N. Y. Underwriters—Alfred L.
Powell Co., New York; and H. Carroll &
Co., Denver,
Colo. Offering—Expected in near future.

tional
and

General Aniline & Film Corp.v New York
Jan. 14 filed

426,988 shares of common A stock (no par)
1,537,500 shares of common B stock (par $1;. Pro¬
the Attorney General of the United State».
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co., Inc., and The First Boaton Corp.
(jointly); Kuhn, Loeb & Co., Lehman Brothera
and Glore, Forgan & Co.
(jointly). Bids —Had been
scheduled to be received up to 3:45 p.m. (EDT) on
May
13 at Room
654, 101 Indiana Ave., N. W., Washington 25,
D. C., but bidding has been postponed.
and

ceeds—To

Fluorspar Corp. of America

$100

Bruce

470,000 shares of common stock. Price—$3
per share. Proceeds—For exploration work and work¬
ing capital.
Office—Portland, Ore.
Underwriter—To

Price-~Of.; stocky $2 "per Share;

expanded shale; Office—728-29 Symes Bldg., Denver 2,

Whitmore,

Co., Washington, D. C.

Dec.

| :d^h6lturosj at par. - ProceedfcFori expilori
and developing mineral properties with objective of producing

—

None.

$180,000 of 6% redeemable debentures

matuhhgfDebi 15,'1967.

Underwriter

expansion and other corporate purposes.

||Q,()i^

of; iiQtificatioh}

Nov. 26 (letter

stock (par$l)and

properties.

First National Life Insurance Co., Phoenix, Ariz.
July 29 filed 106,500 shares of common stock (par $4),
of which 90,000 shares are to be offered publicly and
16,500 shares to employees pursuant to stock purchase
options. Price—To public, $12 per share. Proceeds—For

25 filed - 88,000 shafes of rcommort istock (par $3)
be offered'in exchange for common: Stock of Bryant

Nov.

Coio.

—

Nov. 27 filed 500,000 shares of class A common stock
$1). Price—$4, per share. Proceeds—For office
equipment; inventory, working capital, f (par five cents). Price
$5 per share. Proceeds — To

stock (par

common

Proceeds

Underwriters, Inc., Engiewood, Colo.

First Leaseback

and laboratory-

ete.;

$3 per share.

—

capital and surplus and for first year's deficit. Office—
3395 S. Bannock St., Engiewood, Colo.
Underwriter —

Electro

for general

Jefferson

St., Lynchburg, Va.
Underwriter—Whitney & Co., Inc., Washington, D. C.

V *
(letter of notification) 5,000 shares of common
Price—$6.67 per share.
Proceeds—To selling

stockholder.

Inc., Denver, Colo.
Sept 23 filed 750,000 shares of common stock (par $1)
price—$2 per share. Proceeds—For capital expenditures
ahd working capital. ; Business — Building material.
Underwriter—American:1 Underwriters, Inc., Engiewood,
Colo.,; Statement effective Dec. 11.
Oct. 30

stock.

of Minnesota,

Durox

(131)

Proceeds—To repay $90,000 of notes and

General Automatics Corp., Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $1). Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and

assem¬

bly of controls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Rklgemore Road. N. W.,

Atlanta, Ga. Underwriters—Armstrong & Co., Atlanta,
Ga.

',••■

,.;/v

;V;;

General

Credit, Inc., Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink-;
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase 160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
Price—$5Q0 per unit. Proceeds—
For expansion and working capital. Underwriter—None

tures and 40 warrants.

NEW
s". :'j*

ISSUE

CALENDAR

Equip. Trust Ctfs.
<

Bids

noon

CST)

■

■-

(Bids <to

-v

(Bids

(Tuesday)

Iowa Power &
' :

(Bids 11

""•'V.'r'.'"

&" Co..!"• $5,000,000

_____

American

___•_

'(Baker, Simonds & Co.)

—

_—-

Indiana

-Preferred

V*-..

•Common
Shell

Microwave. Co._______L-—--—Common

J-V-IU

3:^'- V '''

•

(Aetna Securities Corp. r $286,000

Missouri

Pacific

Common

Gulf States Utilities Co
(Bids

Ohio

Service

Water

-Debentures

Co.

■(McDonald & Oo. and Blair P. Claybaugh & Co.)
:l :Pacific

Power

Bonds

^--•Baciiie-Power ■& Light
-(Bids 8:30

(Blyth

Gulf

(Hairiman-

Ripley "&

Power

Southern

Pacific

(Bids

Reichold

(Bids ax:30

Dixon Chemical

''(Offering
P.

Royal

Notes

—

Virginia &

Dutch

(Thursday)

-Bonds

Southern Ry.—
(Bias

to be invited)

March 3

_-Common

Petroleum

(Bids

10:30

Iowa

CST)

a.m.

(Monday)

Bonds

Public Service Co
invited) $10,000,000

to be

(Bids

(Tuesday)

Bonds

Ohio Edison Co.—

(Tuesday)

January 21

March

$8,500,000

(Bids

•

$30,000,000 to

invited)

Pacific Gas &

Electric

(Bids

8:30

a.m.

January 22
'

Bonds

••

(Bids

(Wednesday)

March
—

invited)

$10,000,000

Norfolk & Western Ry

January 23
Great Northern Ry—
'Bids
-

(Offering

Columbia

$5,700,000

System

(Bids

expected

March 6)

June

(Bids

—Common

50,000

are to be sold at 25 cents per warrant
to organizers, incorporators, management, and/or direc¬
tors. Price—$10 per share. Proceeds—For working cap¬

ital and general corporate purposes.
Electric

Underwriter—None.

Light Co.

Oct. 8 filed $2,400,000 of 3% secured debentures, series
A, due Aug. 1, 1967, being offered in exchange for 3%
first and general mortgage bonds, series
D, due May 1,
1982, of Connecticut Power Co. on a par-for-par basis
The exchange offer expires on Dec. 27.
Underwriter
—None.

Debentures

Home Owners Life Insurance Co.

$25,000,000

Bonds
a.m.

EST)

to be

$21,500,000

June
.

(Tuesday)

(Bids to be invited)

**onds or Debs.

$25,000,000

common

stock

Lauderdale, Fla.

June 27

Bonds

$25,000,000

Virginia Electric & Power Co

—Fort

Horace

(Tuesday)

Invited)

of class B

to be

offered to

stockholders

at $6 per share at the rate of two new shares for each
five shares held. Proceeds—For working capital. Office

(Thursday)

Appalachian Electric Power Co.—

stockholders—underwritten by Kalman & Co.,
JpQ.) 166,070 shares

(Lehman Bros.)

Gas

(Bids

—2—_—Preferred

of warrants which

Nov. 1 filed 50,000 shares of class A common stock to be
offered to the public at $5 per share and 116,366 shares

(Thursday)

Georgia Power Co

(Thursday)
Equip. Trust Ctfs.

to be invited)

Portland Gas & Coke Co

March 20

$5,000,000

Minneapolis Gas Co
•"*

-Bonds

-Preferred

Brothers)

Guardian Insurance Corp., Baltimore, Md.
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exercise

shares of Van Dorn Iron Works Co. Underwriter—None.

$4,140,000

Portland Gas & Coke Co.

(letter of notification) 44,400 shares of common
(par $1). Price—$6.75 per share. Proceeds—For
capital stock and unassigned surplus. Office — 119 W.
Rudisill Blvd., Fort Wayne, Ind
Underwriter—North¬
western Investment Inc.. Fort Wayne, Ind.

.Debentures

Equip. Trust Ctfs.

(Bids noon EST)

(Lehman

Iowa Illinois Gas & Electric Co
(Bids to be invited) $9,000,000

$75,000,000

Iowa Power & Light Co
i

(Wednesday)

March 5

■—

PST)

Dec.

$4,500,000

invited)

Office—207

Underwriter---

Hofmann Industries, Inc., Sinking Spring, Pa.
20 filed 227,500 shares of common stock (par 25
cents) to be offered in exchange for outstanding common

$35,000,000

Chicago, Burlington & Quincy RR--Equip. Tr. Ctfs.
(Bids to be

Oct.

Hartford

$5,000,000

Bonds

'
•

Debens.

$30,000,000

Brooks & Co.. Inc.)

West Texas Utilities Co
■

;;

.—Bonds

(Wednesday)

invited)

(Bids to be

February

Research, Inc.____—-Common

(Offering to stockholders—to be underwritten in U. S. by l&>rgan
Stanley & Co.) 7,602,285 shares
'

:
,

stockholders—underwritten by
165,625 shares

Bonds

$15,000,000

Telephone Co

Southern New England

$4,500,000 !

EST)

a.m.

(Tuesday)

Service Co

February

(Monday)

Bldg., Salt Lake City, Utah.
Birkenmayer & Co., Denver, Colo

stock

200,000 shares

(Bids noon EST) $30,000,000

Common.

Inc

(.Bids to be invited)

Great Northern Life Insurance Co.

$29,000,000

Cleveland Electric Illuminating Co

Cambridge Electric Light Co.--

Corp.

notification) 300,000 shares of common
(par 10 cents). Price—$1 per share. Proceeds—
pay balance on oil and gas properties, and unsecured

notes and for drilling and working capital.

S3C,000.000

Inc.)

Janr^ry 20

Chemicals,

Debentures

Kimberly-Clark Corp.
V':'-(Blyth & Co.,

Great Divide Oil

Newhouse

Bonds

EST)

a.m

Central Illinois Public
■"

(Friday)

February 25

$8,400,000

$8,000,000

(Monday)

(Blyth & Co., Inc.)

Equipment Trust Ctfs.
ESTi

noon

EST)

a.m.

Pennsylvania Electric Co

$40,000,000

$23,000,000

EST)

a.m.

Ry.__

January
f

Bonds

(Bids

February 24

Debentures

—Bonds

(Bids

(Thursday)

January 16
Alabama

Inc.)

Co.

filed

stock

Power

;;r

West Virginia Pulp & Paper Co.—

$10,000,000

(Thursday)

February 20

__-Pref erred

$4,000,000

Inc.!

CO..

Dairy Products Corp.
175,000 shares of class A stock (par 10
cents)
of
which 15,000 shares are to be reserved
for
prior offer to employees.
Price — To be sup¬
plied by amendment. Proceeds—To acquire outstanding
stock of Kulka Electric Manufacturing
Co., "Inc. Office
—Elizabeth, N. J. Underwriter—Amos Treat & Co., Inc.,
New York.
Offering—Indefinitely postponed.
25

Oct. 11 (letter of
v

•^•i^-'i-PrefeiTed
i

Bonds, Etc.

(Bids to be invited)

$15,000,000

PST)

a.m.

-West-Coast Telephone Co.

(Wednesday)

Northern Illinois Gas Co

$10,000,000

PST)

a.m.

$7,500,000

—

Gold Seal

Oct.

Preferred

invited)

February 19

$1,248,000

Light Co*——.

(Bids 8:30

Price—$100

Office
1022 18st St., N.
W., Washington, D. C.
Underwriter—Whitney & Co., Inc., Washington, D. C.

'V-V'(Bids,to be,invited)w$3,450,000

stock.

Proceeds—To discharge short term obligations;
purchase merchandise inventory; and for Working cap¬
ital.

(Friday)

(Tuesday)

February 18

—_-Equip. Trust Ctfs.

RR.__

common

unit.

per

to holders of New York shares—
underwriting) $12,600,000

(Offering

Corp.
(letter of notification) $100,000 of 10-year 6%
convertible debentures and 120,000 shares of common
stock (par 10 cents) to be offered in units of one $50
debenture and 20 shares of

..Bonds

& Trading Co., Ltd

Transport

(Wednesday)

about $720,000,000

$25,00C,00C

and for working capital
Office—c/o Edwin
Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
Genie Craft

(Thursday)-

EoT>

noon

February

;

(Baker, Simonds & Co.) $200,000

January 15

underwriting)

poration

Aug. 8

(Friday)

Electric

Michigan
(E)cls

common

-Common

February 13

Bonds
$12,000,000

Telephone & Telegraph Co._-Debentures

$750,000

National'Finance Co.

EST) 340.000 shares

a.m.

Parking, Inc.
(letter of notification) 240,000 shares of

June 18

stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor->

(Tuesday)

invited)

(Offering to stockholders—no

.Preferred

Light Co.—______

Finance Co.

February

$50,000,000'.- : '

CST)

(Smithy Barney

' "

National
■'■

10:30 a.m.

Debentures

$50,000,000

Commonwealth Edison Co,-Bonds Debentures
(Bids

General

Utilities Co.„

Texas

Ctfs.

":.;v (Bids to be invited) $3,435,000

'y.

EST!

a.m.

Central Power & Light

$3,700,000

______Eauip. Trust

& Ohio

Offering to be made through selected dealers.

Application is still pending with SEC.

(Tuesday)

February 4

Equipment Trust Ctfs.
invited!

January 14

Baltimore

(Bids

$4,620,000

Northern Pacific Ry

Bell Telephone Co. of Pennsylvania

Chicago, Rock Island & Pacific RR.
"

njjiied.

January

(Thursday)

January 9

filed

Price—At
utor and

Underwriter—None.

Mann

Fund, Inc., Springfield, III.
100,000 shares of capital stock (par $1).

market.

Proceeds—For

investment.

Distrib¬

Investment

Manager—Horace Mann Investors,
inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St
Springfield. IU.

Continued

page

The Commercial and Financial Chronicle

(132)

Continued

from

page

to the company. Proceeds—To be invested in small loans
secured by second mortgage on home properties.
Office

•

Mines, Ltd.
(letter of notification)

Nov.

mon

stock.

par

($1

Underwriter—D'Amico

Indiana

filed

Proceeds

1988.

—

For

purchase of land, construction and working capital.
Underwriter—Southeastern Securities Corp., New York.

Motel Corp. of Italy
Dec. 11 filed 20,000 shares of class A

due

of bank loans and for

For reduction

Underwriter — To be determined
by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co., Inc.; Harriman Ripley & Co. Inc.* The First
Boston Corp.; Eastman Dillon, Union Securities & Co.
Bids—To be received up to noon (EST) on Feb. 13 at
30 Church St., New York 8, N. Y.
International

stock and

chain

motels

Italy.

Office—Silver

•

Old

Multnomah Kennel

Staple & Machine Co.

Club, Fairview, Ore.
$250,000 of 10% unsecured debentures and
400,000 shares of class A non-voting common stock (par
$1) to be offered in units of $250 ol' debentures and 400
class A shares.
Price
$910 per unit.
Proceeds —To
repay bank loans and short-term unsecured notes. Un¬

units

Dec. 26 filed

10, 1957 in exchange for seven shares of

for each share of preferred.
Both subscription
and tenders for exchange must be received on or before
Nov. 30, 1957. Price—At par ($10 per share). Proceeds
common

-—For working capital.

ing, Pittsburgh 10, Pa.
Iowa Power &

Sponsor—Ira

common

unit.

per

and

Proceeds

three

class A

For

working

capitai

—

Underwriter—None.

if Old American Life Co., Seattle/ Wash.
Dec.

filed

...»

voting trust certificates for not

8.000 shares of

common

voting

Pacific Gas & Electric
Co./(1/21)
Dec. 27 filed $75,000,000 of first and
refunding

Haupt & Co..

(1/14)
Dec. 23 filed 50,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬

New York.

gage

if Mutual Income Foundation

ceeds—For construction

Jan.

retire bank loans and for construction
program.
writer— To
be
determined
by

program.

Underwriter—Smith,

Barney & Co., New York.
.

Iowa Power & Light Co.

(1/22)
Dec. 23 filed $10,00o,000 of first mortgage bonds, due
1988. Proceeds—To repay bank loans and for construc¬
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.,
Inc.: Kidder, Peabody & Co.; White, Weld & Co.; The
First Boston Corp.; Eastman Dillon, Union Securities &
Co.; Equitable Securities Corp. Bids — To be received)up to 11 a.m. (EST) on Jan. 22,
Janaf,

Inc., Washington, D. C.
July 30 filed $10,000,000 of 5^2-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
stock (par 20 cents) to be offered in units of a $1,000
debenture and 10 shares of stock, or a $100 debenture

Products, Inc.

pected

1,785 shares of common
stock (110 par) to be offered for
subscription by common
stockholders at the rate of one new share for each

For additions and improvements.

St., Lorain, Ohio.
Mascot

due

share. Proceeds—
Office—203 West 9th

Mines, Inc., Kellogg, Idaho

—

^ Minneapolis Gas Co.

the

filed
offered

rate

Jan.

(1/23)
166,070 shares of common stock (par
$1)
for subscription
by common stockholders

one

new

for

each

held

23.

1958; rights to expire on Feb.
5, 1958.
supplied by amendment. Proceeds
For
property additions. Underwriter—Kalman &
Co., Inc.,
Minneapolis. Minn.
Price

—

To be

—

Feb. 18
•tock.

capital

Associates, Inc.
(letter of notification) 300,000 shares

Price—At par

expenditures,

($1

per

share).

of common

Proceeds

including construction

—

For

motel,

roadside restaurant and
gas station. Business—Has been
processing and selling of gravel. Office—203
Broadway,
Monticello, N. Y. Underwriter—Walnut
Securities Corp.
Philadelphia, Pa.
Vi

Mortgage Clubs of America, Inc.
Aug. 19 filed $1,000,000 of participation
units in

second

mortgages of real estate to be offered
for public sale in
its of $100. plus a sales
commission of $10 per unit

postponed.

★ North American
Contracting Corp.

Dec. 27 (letter of
notification) 169,500 shares of common
stock (par 10
cents). Price—$1.75 per share. Proceeds—
For working
capital and expansion. Office—1526
Con¬
necticut Ave., N. W.
Washington 6, D. C. Underwriters—
The Matthew
Corp., Washington, £). C. and Ross Securi¬
ties, Inc., New York, N. Y.

13.

(1/15)

Brothers;

Co.

and

Salomon Bros.

Hutzler

Bear

(jointly);

Tentatively expected to be received
Jan.

Oct.

to 8

Smith,
Bids—

(PST)

a.m.

15.

American Tool Co.,
Houston, Texas

28 filed 165,000 shares of
common stock (par $1),
to be offered in blocks of not less
than 3,000 shares. Price
—To be supplied by amendment.
Proceeds
To dis¬
charge trade accounts payable, to buy tools and
equip¬
ment and for
—

working capital. Underwriter—None.
Peoples Security Investment Co.
Oct. 28 filed 1,000,000
preorganization subscriptions to
class A voting common stock
and 250,000 preorganization
subscriptions to class B non-voting common stock to be
offered in units of four class A
shares and

share,
,

one

class B

the purchaser agreeing

share to the
Peoples

to donate each class B
Security Foundation for Christian

Education, to be incorporated as a non-profit
tion. Price—$2
per share.
Proceeds
For

corpora¬

capital and
proposed insurance company to be
Peoples Security & Endowment Co. of America.
—»

surplus to finance
named

Office

—

Montgomery, Ala.

Patterson

Underwriter

—

None.

T. J.

President.

if Peoples State Loan Co. of Delaware

Dec.

(letter of

notification) $100,000 of 6% subordi¬
debentures due July
1, 1963 and $200,000 of 6%
subordinated debentures due
July 1, 1964. Price—Both
at par. Proceeds—To
retire outstanding notes and for
working capital. Office—13534 Woodward
Ave., High¬
land Park, Mich.
nated

Underwriter—None.

North American Finance
Co., Phoenix, Ariz.
Nov. 27 filed 300,000
shares of class B common

(par $1). Price—$5 per share.
capital and other corporate

None.

Sales

Pittsburgh
stock

Proceeds—For working

purposes.

Underwriter—

be made
through Eugene M. Rosenson,
President, and Marcus T.
Baumann, Vice-President and

Treasurer.

Monticello

Nov.

Securities & Co.
(jointly); Blyth & Co., Inc.;
Barney & Co., and White, Weld & Co. (jointly).

Part

Dillon,
Halsey, Stuart & Co. Inc., both

Offering—Temporarily

Merrill
issuable

preferred
(par $100). Proceeds—For construction
program.
Underwriter—To be determined by
competitive bid¬
ding.
Probable bidders: Halsey, Stuart
& Co. Inc.;
Kidder, Peabody & Co., and Eastman
Dillon, Union

—

if Mineral Basin Mining Corp.

and

stock

amended.

Inc.

two

Dec.

Nichols, Inc., Exeter, N. H.
Nov. 14 filed 25,000 shares of
common stock
(no par).
Price—$27 per share. Proceeds—To
repay short term
bank loans and for
working capital. Business
Sells
hatching eggs and day-old chicks.
Underwriter—None.
George E. Coleman, Jr., is President.

Office—Sidney Bldg., Kellogg.

Dec. 30 (letter of
notification) 200,000 shares of common
stock.
Price
At par ($1 par
value). Proceeds
For
mining expenses. Office —1710 Hoge
Bldg., Seattle 4,
Wash. Underwriter—None.

Co.

each
are

Pacific Power & Light Co.
(1/15)
13 filed
100,000 shares of cumulative

(1/14)

cumulative preferred

mortgage pipeline bonds
Price—To be supplied by
amendment. Pro¬
reduce bank loans.
Underwriters

of New York.

Idaho, Malcolm C. Brown is President.
UnderwriterStandard Securities Corp., Spokane.
Wash., and Kellogg,
Idaho.

for

Blyth & Co., Inc. and White, Weld & Co.
(jointly). Bids
—Expected to be received up to 8 a.m. (PST) on Jan. 15,

—

Read

Underwriter—None.

expenses.

1977.

ceeds—To

June 3 (letter of notification)
800,000 shares of common
stock. Price—At par (17V2 cents
per share).
Proceeds

mining

Detroit, Mich.

effective

Stearns &

Natural Gas Pipeline Co. of
America
Nov. 19 filed
$40,000,000 of first

per

mortgage bonds due 1988.
Proceeds—To repay bank loans and for construction
pro¬
gram.
Underwriter—To be determined by
competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Eastman Dillon, Union Securities &
Co., and Kidder,
Peabody
&
Co.
(jointly); Lehman

Bowlero, Inc., Cleveland, O.

to be

Pacific

Power & Lignr Co.
Dec. 13 filed $15,000,000 first

stock (par one
Price—$1.25 per share. Proceeds—For
acquisi¬
tion of
properties; for ore testing program; for assess¬
ment work on the
Yellowknife properties; and for cost
of a concentration
plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York.
Statement ex¬

Lorain Telephone Co.,
Lorain, Ohio
13 (letter of notification)

one

Pacific

cent).

Dec.

Price—$28

Statement

T-aylor & Co., Inc..

National Lithium
Corp., New York
Feb. 19 filed
3,120,000 shares of common

Underwriter—Pierre Rossini Co., West-

held.

inventory and for general cor¬
Office—Room 202 Houston Title
Bldg.,

—

Nov. 25 (letter of notification) 150,000 shares of common
stock (par five cents). Price—$2 per ahare. Proceeds—
For
capital expenditures,
equipment, repayment of
loans and working capital.
Business—Welding and cut¬
ting equipment.
Office — 253 Boulevard, Hasbrouck

exercise of presently outstanding
options granted
by Merrill, which options will be assumed
by Pacific.
Office—Calgary, Alberta, Canada. Underwriter—None.

purchase 112,500 shares of com¬
stock) and 40,000 shares of common stock
(par $1),
the latter to be sold for account
of five selling stock¬
holders. Price
Of preferred
stock, at par ($10 per
share); and of common stock, at $5 per share. Proceeds
—For woiiung
capital. Underwriter—Baker, Simonds &
Co., Detroit, Mich.

general corporate purposes. Underwriter
—Blyth & Co., Inc., San Francisco and New York.

rate

upon

(letter of notification) 100,000 shares of com¬
Price—$3 per share. Proceeds

mon

Proceeds—For

the

shares; the remaining 15,000 shares

stock (par 10 cents).

National Finance Co.,

Jan. 21.

common stock
(par $1),
1,588,998 shares are to be offered in
exchange
for outstanding Merrill
Petroleums, Ltd. common stock

unit/ Proceeds—For erection and
operation of two
bowling sports centers. Underwriter—None. William N.
Skirball is President.
•

(PST)

of which

Biochemicals, Inc.

Dec. 16 filed 75,000 shares of
6/4%
stock (with warrants to

(jointly); Blyth & Co./Inc. Bids—To

Petroleums, Ltd.
filed 1,603,998 shares of

Oct. 11

Nassau

Harland W.

—

per

Kimberly-Clark Corp., Neenah, Wis. (1/17)
Dec. 31 filed $30,000,000 of sinking fund debentures due
Jan. 1, 1983.
Price — To be supplied by amendment.

Office—10

Under¬

bidding.
Corp. and Halsey,

Boston

Pacific

offered in units of $9,000 of
bonds, 90 shares of preferred
stock and 150 shares of common
stock.
Price—$19,500

•

Heights, N. J.
wood, N. J.

investment.

The First

be received up to 8:30 a.m.

Dec. 4 filed $900,000 of 5%
10-year debenture bonds/
9,000 shares of 4% non-cumulative preferred stock
(par
$100) and 15,000 shares of common stock
(par $10) to be

Aetna Securities Corp., New York.

Sept. 10
mon

National

repay bank loans and for general corporate purposes.
Office—4633 Lawndale Ave.,
Lyons, 111. Underwriter—

Koeller Air

Proceeds—For

National

share of stock.

J-V-M Microwave Co., Lyons, III.
(1/15)
Dec. 20 (letter of notification) 96,000 shares of common
stock (par 25 cents). Price—$3 per share. Proceeds—To

Jan.

market.

St., Princeton, N. J. Investment Advisor
Hoisington, Inc., same address.

bidders:

"Stuart & Co. Inc.

Houston, Tex. Underwriter—Scott
New York, N. Y.

•

—For

insurance.;

porate purposes.

provements; for retirement of present preferred shares;
and for working capital, etc. Underwriter—None.

60.4364

with

Probable

—For cost of plant and

Price—Par for debenture, plus
$2 per share for each 10 shares of Stock. Proceeds—For
construction of a shopping center and other
capital im¬
one

filed

Heritage Securities, Inc., Columbus, ■ Ohio,
$5,000,000 of monthly purchase plan certificates

mort¬

bonds, series CC, due Dec. 1, 1978/
Proceeds—To
competitive

the

Nassau Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock. Price—At

tion program.

and

exceed

stock (par $10). I J.
.Alvin Hibbard, President of the company, is one of the 10

trustees.

ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—For investment.

one

and other corporate purposes.

Municipal Investment Trust Fund, lite* (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬

Light Co.

Price—$260

derwriter—Stone, Moore & Co., Inc., Denver, Cclo.

Office—497 Union Trust Build¬
Underwriter—None.

Operations, Inc.

American Life Co.,
Seattle, Wash.
July 22 filed 15,82$ shares of class A stock (par
$10) and
3,165 shares of common stock (par $10) to be
offered in

—

of record Oct.

Oil & Mineral

208

Spring, Md.

Underwriter—None.

Empire Co.

Wright Bldg., Tulsa, Okla.
Underwriter—Universal Se¬
curities Co., 201 Enterprise
Bldg., Tulsa 3, Okla.

Oct. 14 (letter of notification) 20,000 shares of 6% cumu¬
lative preferred stock of which 10,000 shares are to be
Offered to the public and the remainder to stockholders

common

Nov. 4 (letter of notification)
100,000 shares of common
stock (par $1).
Price—$2.50 per share.
Proceeds—For
development of oil and mineral properties. Office

$1,000,000 of 8% income debenture bonds due July 2,
1983, to be offered in units of one $100 bond and two
of stock.
Price—$101 per unit.
Proceeds—To
construct and operate, through Italian
corporations, a

construction program.

& Co.,
Cleveland, Ohio*
Claybaugh & Co., Harrisburg, Pa. '
'

stock.

Michigan Electric Co. (2/13)
$25,000,000 of first mortgage bonds

Thursday, January 9, 1955

(letter of notification) 300,000 shares of
capital
Price—At par ($1 par value).
Proceeds—DeveL
opment of oil property. Office—130 South 4th
St. Las
Vegas, Nev.; P. O. Box 3982, No. Las Vegas, Nev.
Under¬
writer—None.

Motel Co. of Roanoke, Inc., Roanoke, Va.
Nov. 18 (letter of notification) 60,000 shares of common
stock (par 40 cents)/ Price—$5 per share.
Proceeds—

Dec.

Blair

★ Oil

—

Underwriters—McDonald

and

Dec.

per

West, Toronto 10, Ont., Canada.
Co., Inc., Buffalo, N. Y

is President.

man

300,000 shares of com¬
share). Proceeds—
To repay loan,, to purchase equipment and machinery
and for working capital.
Office—1551-A Eglinton Aye.
Price—At

tion.

—Springfield, Mass. Underwriter—None. Charles Hersh-

Horlac

.Nuclear Science &

Sept. 20 filed
cents).
—To

Engineering Corp.

indebtedness

Norden-Ketay

Corp.
to
purchase additional
equipment and for
working capital
Underwriter—Hayden, Stone & Co., New York.

ing—Temporarily

tions.

Offer¬

postponed because

market

condi¬

Ohio Water Service
Co., Struthers, Ohio (1/15)
Lied $1,248,000 of
convertible subordinated de¬
bentures due 1977.
Price—At 100% of
principal amount.
Pi oceeds
To
repay bank loans and for new
construc¬
Dec.

Nov. 15 filed $5,646,750 of
5% sinking fund income sub¬
ordinated debentures due Oct.
31,

1992; 112,935 shares of
stock (par
$1); and 451,740 warrants to pur¬
451,740 additional shares of common stock being

common

chase

offered in units of $50 of
warrants

debentures,

one common

share,

to purchase four
common
shares plus $1 hi
These units are to be issued
in exchange for each
outstanding share of preferred stock
(par $25) plus
accrued dividends.
The offer will
expire on Jan. 31,
1958.
Purpose—To eliminate or reduce
preferred divi¬
dend arrearages.
Underwriter—None. Statement effec¬
tive Dec. 13.

cash.

100,000 shares of common stock
(par 25
Price—To be supplied
by amendment. Proceeds

prepay

Brewing Co., Pittsburgh, Pa.

Pittsburgh-Des Moines
Nov.

Steel Co.

(letter of notification) 5,750 shares of common
stock (no
par), of which 1,920 shares are to be offered

for account

'company.
steel

of selling
stockholder, and 3,830 shares for
Price—$52 per share. Proceeds—To purchase

inventory items. Office—Neville Island. Pittsburgh

25, Pa.

Underwriter—None.

[Volume 187

Number 5706

The Commercial and Financial Chronicle

(133)
Pleasant Valley Oil &
Mining Corp.
Sept. 30 (letter of notification) 2,000,000 shares of com¬
stock. Price—At par (five cents
per share). Pro¬
ceeds — For geological studies, reserve for
contingent
liability, for machinery and equipment and other re¬
mon

St. Louis Insurance

Underwriter

•••

.....

,.y

Schering Corp., Bloomfield, N7J.
Sept.

ten^Mdi Underwriters—First Washington Corp. and The
both of Washington, D. C. Change of
Name—Formerly Acme Tool & Engineering Corp. ■
Stanford Corp.,

con¬

Un¬

Park

stock.

Price—At market.

Jan. 2 filed

50,000 shares, of cumulative preferred stock
(par $100). Price-—To be supplied by amendment. Proceeds---To repay bank loans and for
construction pro- 7
gram.
Underwriter—Lehman Brothers, New York.

?
stock

cents).

(par 50!

Price—To be Supplied by amendment. Proceeds
—To Public
Savings Insurance Co., the selling stock-/
holder.
Office—Charleston, S. C. Underwriter—None.

Pyramid Mining & Metal Corp.
notification) 236,000 shares of common
stock (par $1).;
Price—r$l.25 per share. Proceeds—For
mining expenses. Office
508 Great Plains Life
BIdg.,
Lubbock, Tex. Underwriter—Sterling Securities Co.,
Inc.,
Odessa, Tex., 7
V-'..:.*.. 7,7'77..
r

•

Reiehhold Chemicals, Inc.
Oct* 10 filed.
200,000 shares of common stock (par $1).
Price—-To be supplied
by amendment. Proceeds—For

expansion program and
working capital, Underwriter—
Blyth & Co., Inc., New York.
Offering — Expected
Feb. 24. ""
' v
" "-7; ' . •"

$100 debenture
per unit;

Proceeds—For equipment,
working capital and inven¬
tory. r Office—7962- S/ .E* Powell

Blvd., Portland,

Underwriter—Campbell

Ore.

& Robbins, Inc.,. Portland, Ore.

Resolute

Bay Trading Cow, Ltd.
Oct. 297(letter of
notification) 30,000 shares of common
stock. Price—At
par ($5 per share). Proceeds—For work¬
•

ing

per share.

Proceeds—To

pay

gations and for
and

offered

facilities.
—None.
'

-•

repay

and

iot-q

i?.°l-

7,602,285 shares

Feb. 10;

gan

postponed.

Rule

Dee.

;

Electric Steel Co.

7.7.

;

„

'£/• 77

due

20-year

bank loans.

Louis, Mo.

Underwriter—White

Co.,

Corp., Houston, Tex.

Oct.

21 filed 10,000,000 shares of common stock (pai
cent). Price—$1 per share. Proceeds—For explora¬
tion and exploitation of oil, gas and sulphur properties

Inc., Hous¬

ton, Tex.

of record Jan. 17,
each eight shares

Syntex Corp.

one

Ogden

share for each option to purchase four shares of

stock; unsubscribed shares to be offered
to certain employees and officers.
Price—$2 per share
Proceeds—To pay outstanding obligations to Ogden Corp

;

(C. F.)

common

Underwriter—None.

tional

equipment.:

Office—Nashville.

—Nonestatement effectiveNov.

Tenn.

20.

Underwriter

fred

Tax

other corporate purposes. Underwriter—None.
E. Owens of 'Waterloo, la., is President.

Trask

Dee.

Al¬

7 7

Manufacturing Co;

(letter of notification) 15,000 shares of common
(par $5)v Price — $4.50 per share. Proceeds — For:
working capital and payment of current liabilities^ Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,
stock

N. C.

Underwriter

—

Selected Investments,

Wilmington,

N. C.

•'

•

■

Ulrich

Manufacturing Co.
Sept. 24 filed $600,000 of 6% sinking fund debenture*
and 30,000 shares of class A common stock (par
$1) to
be offered in units of $500 of debentures and 25 shares ot
stock. Price—To be supplied by amendment. Proceeds—
To reduce bank loans, to repay all or part of an out¬
standing 5% term loan and/or provide additional work¬
capital. Office—Roanoke, 111.
Underwriter—Whit®
Co., St. Louis, Mo., on a best-efforts basis.

ing
'&

Union of South Africa

12 filed

Jan.

filed

follows:

(by amendment) additional securities as1,500,000 shares United Income Fund (par $1);

1,000,000 shares United Service Fund
shares

market.

United

Continental

Fund

(par

(par $1); 750,000.
$1). Price — At

Proceeds—For investment.

United

States

Coconut

Fiber

\.
Corp.

Sept. 30 filed 735,000 shares of common stock (par $1)7
Price—$4 per share. Proceeds—For expansion programand other corporate purposes. Office—Washington, D. G,
Underwriter
Issue

—

Southeastern Securities

withdrawn

from

Corp., New York*.

registration.

United States Sulphur Corp.

(Republic of Panama)

July 24 filed 1,165,750 shares of common stock (par $2)
to be offered for subscription by common stockholder!
of Ogden Corp. on the Sasis of one new share for each
four shares held and to holders of options on the basil

Underwriter—Mor¬

Construction Co.
.13-filed 127,289 shares of common
stock (par $10).
r.
r
E»«e—$13
per share. tmccus—xu
Proceeds—To ieuie
retire
outstanding
ans and for
working capital and investment in addi¬

de-

one

of-

—;

acquisition, exploratory work, working capital, reserves,
and

★ United Funds, Inc., Kansas City, Mo.

convertible

Underwriter—T. J. Campbell Investment Co.,
be

Dec.

reduce

;

Proceeds—For transportation

Inc., Kansas City, Mo.
of

$15,000,000 10-year external loan bond*
1, 1967. Price—To be supplied by amendments
development program. Un-^
derwriter—Dillon, Read & Co. Inc., New York. Offering
—Postponed temporarily.

100,000 additional shares
stock (par $1). Price—At market. Proceeds

$650,000

(no par).:

due Oct.

(by amendment)

filed

per share.
Proceeds — For working capital.
Office—442 W. California Road, Fort Wayne, Ind. Un¬

Sept.

Inc.

Co., Pittsburgh, Pa.

Uranium Mining Corp.
Nov. 6 filed 3,000,000 shares of common stock (par on*
mill). Price—25 cents per share. Proceeds—For land

(letter 6f notification) $300,000 of 6% second•
serial bonds (with common stock purchase
warrants)".
Price—At par (in denominations of $1,000each).
Proceeds—For payment of demand notes pay-;

common

Trans-America

mortgage

Investment Fund,

for

each seven shares then
held; warrants
Feb. 7; 1958. Price—$6.15 per share. Pro¬
working capital and surplus. Office—2 Gate¬
Center, Pittsburgh 22, Pa. Underwriter—McKelvy

expire

derwriter—None.

77^7

Price—$4

For

★

Price—To be supplied

programs.

£ 7:

Southern

Surinam

Stanley & Co., New York, heads list of
American

underwriters.

$50 bond.? Price—$52.65;

one

shares for each share held. Prico

Town & Country Securities Corp.
Dec. 20 filed 250,000 shares of common stock

selling stockholders. Underwriter—Merrill Lynch, Pierce,
Fenner & Beane, New vYorta. Offering —
Indefinitely

St.

be made available to the
Group of companies for their capital and

xpioration-expenditure

—

15, 1977. Price—At par (in denom¬
inations of $1,000 each). Proceeds—For working capital

aipGndment. Proceeds—To

woyai-shell

(1/20)
capital stock to

subsci[,,ption by stockholders
basis of one new share for

neid, rights to expire
p

(par $2.50)

10 filed 155,000 shares of common stock
(par $1).
Price—To be supplied by amendment. Proceeds—To two'

bentures

•

Simplicity Pattern Co. Inc.

Nov.

Office—705 South Husband St.,
Stillwater,
B. Burns Securities Agency,
7,

Oct.

Stuart-Hall Co.,

c$??* Underwriter—Richard
Okla.

new

construction, ownership and
management of shopping centers, luxury hotels and other
commercial property.
Underwriter — None. Offering
to be made through Akiba
Zilberberg, 5857 Phillips Ave.,
Pittsburgh 19, Pa., the company's President.

and

Royal Dutch Petroleum Co.

Proceeds

—For investment.

July 22 (letter of
notification) 11,022 shares of common
stock. Price—At
par ($1 per share). Proceeds—For work¬

Dee. 20 filed

share ol stock and

unit.

new

ceeds—For

$2,500,000 of debenture bonds to be offered in units

one

per

Dec. 30 filed

Records, Inc.

Stillwater,

basis of two

(letter of notification) 38,642 shares of.common
to be offered for subscription by common
stockholders of record Jan. 8, 1958, on the basis of one

Dec. 17 filed 50,000 shares of common stock

ing capital.

subsidiary.

★ Sterling

Windover Road, Memphis,

★ Thrift Investment Corp.

Shopping Centers Corp., Pittsburgh, Pa.

working capital. Office—3309 Winthrop St., Fort.
Worth, Tex. Underwriter—Reilly, Hoffman & Sweeney,
Inc., New York, N. Y. Offering—Expected this week.

—

($1 par value).
,a short-term bank note
.Underwriter—None.
-

capital.

common

Dec. 27

filed

and

(letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds—To re-i
pay outstnding
indebtedness.. Office
Littleton, Colo.

25,000

supplied by 'amendment.Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of
wells, and for
other corporate purposes. Underwriter—None.

due

share).

$100,000 outstanding obli¬

value);

par

and

stock (par $1)

Proceeds—For construction, payment of promissory note

Rose

working

—To

$990,000 of first mortgage sinking fund"
Dec. 1, 1973.
Price—At par. Proceeds—To*,
indebtedness. Underwriter — Sheraton Securities;

bonds

*^orc'

subscription by

Sovereign Resources, Inc.

Rocky Mountain Quarter Racing Association
Oct.

TennrWlitCr—^

for

Nov. 19 (letter of notification) 1,500 shares of 7% cumu¬
lative preferred stock. Price—At par ($100 per

improvement and rehabilitation of plant
Business—Fiberglass panels. Underwriter

$25

stock

ordinary shares)
holders of ordinary,
shares, including stock represented by New York shares
of record Jan. 17, 1958. This
represents 10% of the total,
offering by the company, which 10% is to be offered forsubscription by American residents. Price—To be sup¬
plied by amendment. Proceeds
For exploration pro-;
grams. Underwriter—None in the United States.
be

Resolite Corp.,
Zelienopte, Pa.
Dec. 6 filed 20,000 shares of
common stock to be offered
for
subscription by stockholders of record Dec.
1, 1957
in.the ratio of 3% new
shares for each 10 shares
held;
unsubscribed shares to be offered to
public. Price—$10

preferred

Price—At par in each instance

working capital. Office—2301 Huntsville Road,
Birmingham, Ala. Underwriter—None.

Business—Purchase and sale of commo¬
Office—St. John, N. B., Canada. Underwriter—
Irving Weis & Co., New York,.
-■
...

able and

capital, etc.

dities.

stock.

Texam Oil Corp., San Antonio, Texas
f
■
)
May 29 filed 300,000 shares of common stock (par
$1),
to be offered for subscription
by common stockholder®

•

Research Instrument
Corp.
Octr 7 (letter of
notification); $125,000 of 10-year 10%
convertible debentures and
12,500 shares of common

participating

common

(preferred,

way

Underwriter—None.

one

cumulative

shares of

"Shell" Transport & Trading Co., Ltd. (2/J.4)/
Dec. 20 filed a maximum of
$12,600,000 of New York
Shares (representing a like amount of

share.

Common''stock;'Price—$200

Corp.,

Proceeds—For exploration
development of properties and completion of a uranium
concentrating pilor mill. Office—295 Madison Ave.,
New York 17, N.'Y7

Underwriter—None/,1

★ Telephone Utilities, Inc.* Ilwaco, Wash. *
Dec.
23
(letter of notification) 11,000 shares

and

Dec.

dividend*

Price—To be supplied by amendment.
ProceediH

selling stockholders.'

writer—None.

one

and

stock (no par) to be
offered in units of
and terr shares of

—To

Proceeds—For the retirement of

per

investment.

(par $10).
Price—To be supplied by amendment.
Proceeds—For
working capital. Office—Salt Lake City, Utah. Under¬

Price—$5

future.

Sheraton Properties, Inc., Boston, Mass.

—

cent)..

—

Oct. 24 (letter of

Ramapo Uranium Corp. (New York)
Aug. 13 filed 125,000 shares of common stock
(par

Proceeds—For

Exempt Bond Fund, Inc., Washington, D. C.

June 20 filed 40,000 shares of common stock. Price—$25
rrer shares-Proceeds
invest me nt.'Underwr iter—

Co., Mountain Valley CM
Corp. and Trigg Drilling Co.; while 57,239 are to be of-ifered
immediately to the public, while the balance oft
78,613 shares are to be similarly offered in the near'

Underwriter—Willis E.
'

Tekoil Corp.,

to stockholders of Texolina Oil

Sentinel Security Life Insurance Co.
Nov. 27 filed 5,000 shares of common stock

Professional Life &
Casualty Co., Champaign, III.
Dee. 16 filed 120,000 shares of common
stock/ Price—
$45 per share. Proceeds—To increase capital and
surplus.
Underwriter—None. ' -h"••)
:
yO .. .77;.•'
Public Savings Life Insurance
Co.*
29 filed1 113,000 shares of
common

St., Springfield, Mass.

stockholders

new

Dallas, Texas
7'
;
9 filed b/?,488 shares of
common, stockj Of which'
377,408 shares are to be issued for the-account of
selling:,
stockholders and
the5'remaining 300,000 shares issued '
from time to time in
exchange for oil and gas properties^
Of- the 377,408
shares, 132,558 shares, 61,392 shares arid1
47,606 shares, respectively,, are to be issued as

★ Science & Nuclear Fund, Inc., Philadelphia, Pa.
Dec. 30 filed (by amendment) 20,000 shares of
common.

(1/22-23)

Nov;

Underwriter—None.

of one

Dec.

Burnside & Co., Inc., New York City.,

77'

• Portland Gas & Coke Co.

com¬

(5 cent par value) at a price of $1 per share.-Pro¬
ceeds—For further development and marketing of com¬
pany products (including electronics division). Office—

Compania Financiera de Inversiones,
Inc.,
*.

class B

basis

share for each four shares
held..
Price—To be supplied by
amendment. Proceeds — To >
retire short term bank loans and
for working capital
and"
general corporate purposes. Office
Rochester, N. Y„
Underwriter—The First Boston
Corp., New York. Offers
ing—Indefinitely postponed.

stock

—

financing, will be used to purchase hotel site,
struction, furnishing and equipment of the hotel.

the

(letter of notification) $120,000 6% convertible
sinking fund debentures, due Feb. 1, 1968, convertible,
except as provided in case of redemption, into common

common stock (par
$1) to be offered in units
preferred share and 26 common shares. Price
per unit.
Proceeds 7- Together with proceeds of

debt

' {t!

Dec. 27

one

San Juan, P. R^

held.

★ Scientific Industries, Inc.
preferred

Ishares of

—

stock for each White class A

mon

stock, series A (par $100), 12,410 shares of 6% cumula¬
tive preferred stock, series A A (par $100) and 364,000

derwriter

filed

common

$126

' /j
cumulative

278,983 shares of'15%
con¬
vertible preferred stock (par $30) and
418,475 shares of
common
stock (par $1) to be issued in exchange for
stock of White Laboratories, Inc. (which is to be
merged
with Schering Corp., effective
Sept. 19,. 1957) on the
basis of one share of preferred stock and 1 Vi shares of

Taylor Instrument Companies
Oct. 1 filed 99,195 shares of common
stock (par
$10) to
be offered for
subscription by common

—

Polytronic Research, Inc.
-■
Nov; 4 (letter of notification)
80,000 shares of common
'stock (par 10 cents). Price—$2.50 per share. Proceeds—
Foe equipment and research,
development program and
working capital. Office—4130 Howard
Ave., Kensing-*

Ponce Hotel Corp., San Juan, P. R.
Dec. 12 filed 1,590 shares of 6% cumulative

Held

Yates, Heitner & Woods, St. Louis, Mo.
Offering—Indefinitely postponed.

Office.— 616 Judge; BIdg., Salt Lake
City, Utah.
Underwriters-Steven Kendall & Co., Inc., New York. :
:
•••*"«•
U
•

Equitable Securities Corp.,
Nashville, Tenn. Offeringup pending passing of
necessary legislation by'
Congress.
/•
v7

filed 1,250 shares or class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.

serves^
«

Corp., St. Louis, Mo.

March 27

Oct. 8 filed 1,500,000 shares of common stook

(par one
Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and develop¬
ment work.
Office — Houston, Texas.
Underwriter —
cent).

None.

Uranium Corp. of

America, Portland, Ore.

April 30 filed 1,250,000 shares of common stock

(par^10

cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President.

,Continued

on page

;

Continued
Vulcan

Prospective Offerings

Birmingham, Ala.

Materials Co.,

cumulative pre¬
ferred stock (par $100), 54,631 shares of 5%% cumula¬
tive preferred stock (par $100), 87,000 shares of 5%
cumulative convertible preferred stock (par $16) and
2,390,230 shares of common stock (par $1) to be issued
in exchange for stock of Union Chemical & Materials
Corp. and Lambert Bros., Inc. under an agreement of
merger to become effective Dec. 31, 1957, viz: Each of
the 1,143,968 shares of Union common stock outstanding
114,396 shares of 6%%

1% shares of Vulcan common

be converted into

are

(1,429,960 shares) and 1.1 shares of Vulcan 6*4% pre¬
ferred (114,396.8 shares); each of the 1,092,639 shares of
Union 5% preferred stock outstanding will be converted
into
l/20th share of Vulcan 53/4%. preferred (54,632

shares); and each of the 1,200 common shares of Lam-»
Vulcan com¬

bert will be converted into 486% shares of

(583,600 shares) and 72y2 shares of Vulcan 5% pre¬
(87,000 shares). Vulcan will also issue 376,670
common stock in exchange for the stocks of

mon

ferred

shares of its

Materials, Inc.; Wesco Contracting Co., Asphalt
Paving Materials Co.; Brooks Sand & Gravel Co.; and
Tennessee Equipment Co.; 50% of the outstanding, stock
of Chattanooga Rock Products Co. and 66%% of the
stock of Rockwood Slag Products, Inc.
Prior to the
Wesco

Lambert owned, and as a result of the
merger Vulcan will own, the remaining 50% stock in¬
terest in Chattanooga Rock and the remaining 33%%
stock interest in Rockwood Slag. Underwriter—None.
above

Oct.

(letter of notification) 4,708 shares of common
(no par) to be offered for subscription by common

stock

the basis of one new share for each two

shares held.

Price—$20 per share. Proceeds—For con¬
struction of new telephone plant. Office — 47-49 Main

(letter of notification)-50,000 shares of common
(par $1) of which 34,280 shares are to be offered
publicly at $1.20 per share and 15,720 shares are to beoffered to certain individuals under options. Proceeds—

stock

West Coast

Dec.

Office

—

3612 Quesada

Underwriter—Wagner &

Telephone Co.

filed

160,000 shares of $1.44 junior cumulative
preferred stock (par $25).
Price—To be
supplied by amendment.
Proceeds.— To repay bank*
loans and for construction program.
Office — Everett,/
Wash.
Underwriter—JSlyth & Co., Inc., San Francisco
New York.

West Texas Utilities Co.

(1/20)

Dec. 23 filed $8,500,000 of first mortgage bonds due 1988.
Proceeds—To repay loans and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co. and Lehman Brothers (jointly); The First Boston

Corp.:

BIyth & Co., Inc., Harriman Ripley & Co. Inc.
(jointly); Equitable Secu-\
Corp.; Kidder, Peabody & Co., Eastman Dillon,
Union Securities & Co., White, Weld & Co., and Shields
& Co. (jointly); Merrill
Lynch, Pierce, Fenner & Beane.
Bids—Expected to be received up to 10:30 a.m. (CST)
and Salomon Bros. & Hutzler

rities

oil

Jan. 20.

West

Virginia Pulp & Paper Co. (1/15)

Dec. 23 filed

$40,000,000 of 20-year debentures due Jan.

1, 1978. Price—To be supplied by amendment. Proceeds
expansion program. Underwriter—Harriman Rip¬
ley & Co. Inc., New York.

—For

Western Copperada Mining Corp.

Appalachian Electric Power Go.

(Canada)

Aug. 30 (letter of notification) 300,000 shares of1 common
Price—At par ($1 per share). Proceeds—For de¬
velopment and exploratory work, drilling costs and sur¬
vey, and for working capital.
Office — 1205 Phillips
Square, Montreal, Canada Underwriter—Jean R. Veditz
Co., Inc., New York. Offering—Expected at any time.
Wisconsin

Southern

Gas

Price—$16

per

Co.,

Inc.

held; rights to expire
share.

Jan. 24,

1958.

Proceeds—To repay bank loans.

and Bell &

Farrell, Inc., both of

Madison, Wis.

stock

For

•

Baltimore & Ohio

(par 10 cents).

Trice—$2

working capital and

per

general

share.

will

common

purposes.

York, N. Y.

Under¬

Co., Inc., New York.

Young (Donald W.) & Son, Inc.
14 (letter of
notification) $75,000 of 10-year 6%
debentures due Oct.
1, 19OT, with common stock
war¬
rants to purchase
7,500 shares of 10-cent
par

NY
N.
Y.

by the company at

received

Nov. 25 it

was

of first mortgage bonds next AprilProceeds—To repay bank loans and fqr con¬

May.

Underwriter—To be determined by
bidding. Probable bidders: Halsey, Stuart& Co. Inc.; Lehman Brothers; Blyth & Co.,-Inc., and
F. S. Moseley & Co. (jointly); Merrill Lynch, Pierce,n
Fenner & Beane; Harriman Ripley & Co. Inc. and The
First Boston Corp. (jointly); White, Weld & Co. v
competitive

Electric

Power

Peabody

per sllare. Price—$100
one

warrant.

Proceeds—To

r W°*ing capitaL

Underwriter—Sherry

per unit

common

$100

repay short

Office-Stockholm,

Co., New York.

Halsey, Stuart & Co. Inc.; Blair & Co., Inc./
Baxter^:Williams &//Go.t(jointly);:Glore, Fqrgan &
Co.; Blyth ;&vCo., Inc.; The ./First 'Boston Corp.; White,
Weld & Co.;. Dillon Read & .Co. Inc., Bids—Expected tobe received up .to noon .(EST) on
Feb./25..;.:!^l;-.w//, - J

bank loans and for construction
program.
To be determined by competitive
bidding.

Underwriter—
Probable bid¬

Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
(jointly);
(jointly);
Co., Inc.; Blyth & Co.,
Inc., Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly).
Bids—Expected Feb. 25.
Securities & Co. and Equitable Securities
Corp.
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
Salomon Bros. & Hutzler; Blair &

Dec. 9 it

sell

repay

Underwriter—"
by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Eastman Dillon, UnionSecurities & Co.; Kidder, Peabody &
Co.; Lehman Bro¬
thers and Glore, Forgan & Co.
(jointly); Blyth & Co.
Inc.; The First Boston Corp.; Kuhn, Loeb &
Co.; Merrill
Lynch, Pierce, Fenner & Beane and Salomon Bros. &
ceived

(jointly).

Bids—Tentatively expected

are

to be

re¬

Feb. 4.

Chicago, Burlington & Quinoy RR.
expected

received

certificates.

Probable

Inc.; Salomon Bros.

(1/21)

by the company

$4,500,000 equipment

bidders:

Halsey,

was

reported

Stuart

& Hutzler.

12 it

was

announced

....

,7,

sometime

sell

about

after

the

Proceeds—To repay advances made
by
Peoples Gas Light & Coke Co., the parent.
Underwriters

—Probably Dillon, Read & Co.
&

Inc. and

Halsey, Stuart

Co. Inc.

Chicago, Rock
Bids

are

line.

$60,000,000 of new bonds
be sold next year to repay bank loans incurred
through August, 1958. Underwriter—To be determined
through competitive bidding. Probable bidders: Halsey,
may

Stuart

Boston

Corpj

Co.

Morgan

Inc.;

Stanley

The First

Co.;

Consolidated/Natural Gas Co.

Company

;/7

;

and sell approxi¬
mately $45,000,000 debentures.1 Underwriters—To be de¬
termined .by?.{competitive
bidding.
Probable bidders:,
Halsey, Stuart & Co.; White, Weld & Co. and Paine,
Webber, Jackson & Curtis (jointly); Morgan Stanley &
Co. and First Boston Corp. (jointly).

plans

reportedly

Dec.

issue

12 it was reported company

plans to issue and sell
mortgage bonds due- 1988.
repay bank loans and for construction
pro gram;,/Underwriter—To be determined by- competi-'
around

$15,000,000

Proceeds

—

first

tive bidding./ Probable bidders:
Halsey, Stuart & Co..
Inc.; The First Boston Corp.; White, Weld & Co.; Glore,
Forgan & Co.; Kuhn, Loeb & Co.; Eastman Dillon, Union

Securities
Drexel

&*Co., and A. C. Allyn & Co. Inc. (jointly);
and Equitable Securities 1 Corp^ (jointly).

Co.

Offering—Planned
Freeman

in first

half

(1/9)

expected to be received by the
company up to
noon
(CST) on Jan. 9 for<> the purchase from
it of
$4,620,000 equipment trust certificates. Probable
bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
Hutzler.

1958.

Electric Construction

•

Co., Inc.

•

Nov. 27 (letter of notification)

100,000 shares of common
per share. Proceeds—To
reduce accounts payable, etc., and for working capital
and general, corporate purposes.
Office — New York.
stock

(par 10 cents)/'Price—$3

Underwriter—Harris Securities
Offering—Late

Corp., New York City.

in January.

Georgia Power Co.

(3/20)

Dec. 6 it was announced company

plans to issue-and

sell1

$21,500,000 of first mortgage bonds due 1988. Proceeds—
Underwriter — To be
determined--by competitive bidding. Probable bidders*.
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Leh¬
man Brother^; The First Boston
Corp.; Blyth & Co., Inc.,
Kidder, Peabbdy & Co. and Shields & Co. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co. (jointly).
Bids—Scheduled to be re¬
ceived up to II a.m. (EST) on Feb. 20.
Registration-

To finance construction program.

Bids

are

expected

.•

Ry.
to

(1/23)

received

Jan. 23 for the purchase from it of
trust certificates.

the

company

$5,700,000

Probable bidders: Halsey,

equipment

Stuart & Co.

Inc.; Salomon Bros. & Hutzler.
•

Gulf, Mobile & Ohio RR.

Dec. 20 ICC granted

Island & Pacific RR.

Dec. 3 it Wa^ stated that about

Great Northern

company plans to

Electric Co.;

250,000 shares of common stock. Under¬
Dillon, Read & Co. Inc. and The Ohio Co.

—

Planned for-Feb. 21.*: *

$5,000,000 of first mortgage bonds

and/

plans to issue and sell

company

Consolidated Edison Co. of New York,

Chicago District Pipeline Co.
Nov.

issue

about

(jointly). 7,',

(2/4)

was

bank loans and for construction
program.
To be determined

9 it

1958

•

reported company plans to issue and
$12,000^000 of first mortgage bonds. Proceeds—To

Hutzler

.reported/.company/plans

was

Duquesne Light Co

ders:

Power & Light Co.

writers

(2/25)

reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
was

Central

Dec.

★

was

Central Illinois Public Service Co.
Dec. 9 it

★ Columbia Gas System

Co.;

reported company may issue $4,500,000
of first mortgage bonds,
underwriter — To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; The First Boston Corp.; and Coffin
& Burr, Inc. and F. S.' Moseley & Co.
(jointly); Bids—
Tentatively expected to be received in January.

Bids

able bidders:

and

Underwriter—

construction.

Cambridge Electric Light Co.
22

nf-first mortgage bonds due 1993. Proceeds—

bank loans and for new construction.> Underwriter—To .be determined by competitive bidding. Prob- '

White, Weld & Co. (2) For
common stock—Merrill
Lynch, Pierce, Fenner & Beane;
Carl M. Loeb, Rhoades & Co.; White, Weld & Co.; Kidder, Peabody & Co. Any preferred stock may be sold
on a negotiated
basis, and underwriters may be Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly).
&

2/25)7/7/:

plans to issue and sell

To repay

/-Columbus & Southern Ohio

To be determined by competitive bidding. Probable bid¬
ders:
(1) For any bonds—Halsey, Stuart & Co. Inc.;

Kidder,

Cleveland Electric Illuminating Co. *;(

$25,000,000 of 25-year debentures. Underwriter—To <
be determined by competitive bidding. Probable bidders:Halsey, Stuart,/& Co.; Morgan .Stanley & Co.; Merrill.
Lynch,, Pierce, Fenner & Beane/aind White, Weld. &
Co. (jointly). Bids—'Tentatively expected to be received
>
011 March 6.
7 7
//""•" 77.. 7X7 ~ ' f' '

Co.

Carl C. Ernst, President, said ; that "it now
appears We will be back to market more securities soon
after the first of the year."
Proceeds—For repayment

Oct.

20,

new

stockholders i

sell

was

California

common,

450,000 'additional shares of common / stock on;
about a* l-for-16 basis.v Underwriter—/None, 7# ^77, ,
about

Dec.

Bank, Buffalo, N. Y.

reported the bank plans to offer to its
stockholders 18,750 additional shares of common stock
(par $10) on a one-for-five basis, / Price—$25 per share.
Proceeds—To increase capital and surplus.
'

Nov.

its:

the summer of 1958 ?to offer to

$30,000,000

announced that company expects to issue

and sell $22,000,000
or

it ' Was<?.also- announced vthat: company -plans.- in

Nov.: 8

Dec. 17. it was ,announced company

turn of the
year.

Nov.

Brooklyn Union Gas Co.

Proceeds

corporate

Office—207 East 43rd
Street, New
writer—J. A. Winston &

Cincinnati Gas & Electric Co.

(1/14)

RR.

2 Wall St.,
New York 5, N. Y., up to noon (EST) on Jan. 14 for the
purchase from it of $3,435,000 equipment trust certifi-'
cates. Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬
mon Bros.• & Hutzler.
•'< - *■'/ v ' •./'/
/=7:•"> v' ■'?';>•/;>. /
Bids

trust

(letter of notification) 150,080 shares of

debenture and

& Co.

Jan. 21 for the purchase from it
of

Worldmark Press, Inc.
Dec. 20

Lynch, Pierce, Fenner & Beane and Lehman Bros.'
(jointly); Eastman Dillon, Union Securities & Co. and
White, Weld & Co. (jointly).;
' ' 7
/"
•
;

rill

Loeb & Co. and Eastman Dillon, Union
(jointly); Harriman Ripley & Co. Inc.
Bids—Tentatively expected to be received on June 3.

Underwriters—The Milwaukee Co.,
Milwaukee, Wis.; and

Harley, Hayden & Co.

Underwriter—To be determined by competitive bidding;/
Probable bidders: Halsey, Stuart & CoV Inc.; Morgan
Stanley & Co. and W. E. Hutton & Co. (jointly); Blyth
& Co. Inc. and The First Boston Corp. (jointly); Mer¬

Corp.; Kuhn,

Securities

bidders:

Dec. 12 filed 19,327 shares of common stock
(par $10) to
be offered for subscription
by common stockholders of
record Dec. 26, 1957 at the rate of one new
share for
each six

determined by competitive -bidding. Probable
Halsey, Stuart & Co.: Inc.; The First Boston

it was reported company plans in 1958vto sell
$15,000;000 of first mortgage bonds. "Proceedsrepay bank loans and for construction program.

about

$25,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program.
Underwriter
bidders:

> v^./.-

Nov.

(6/3)

2, it was reported that this company, a subsidiary
of American Gas & Electric Co., plans to issue and sell

—-To

:„.v;y;v.7

;;

Cincinnati Gas & Electric

Dec.

stock.

•

Kuhn,-{Loeb,/&Xo.

of bank logins and for

(1/15)

convertible

and

determined

and

Buffalo Industrial

Washington National Development Corp.

St., N. W., Washington, D. C.
Co., New York City.

$3,500,000 con¬

Underwriters—To *be

Probable bidders: Van Alstyne,
Crowell, Weedon & Co.
(jointly).
Offering—Expected in March.
: 1 /
Co.

Dec. 23

For general corporate purposes.

termined

by competitive bidding.
Noel

St., Warwick, N. Y. Underwriter—None.

Oct.

Spring of ;1958 between $16,000,000 to $20,first :mortgage bonds.. Underwriter—To be de¬
by/ competitive bidding.
Probable; didders:
Halsey, Stuart. & Co.; Eastman Dillon,., Union Securities
& Co. and,/Blyth &■ Co.",(jointly)First Boston Corp.;'
000,000

approximately

sell

debentures.

announced' company plans to issue and

was

in late

sell

struction program.

Valley Telephone Co.

stockholders

plans

Company
vertible

Dec.

^American Electronics, Inc.

merger,,

Warwick

Pacific RR,

★ Chicago {Rock Island &

from page 41

filed

Dec.

Thyi:sdayj-Janu^ryt9, 1958/

The Commercial and Financial Chronicle-.

(134)'

company

permission to issue

343,800 of 5% income debentures to mature Dec. 1,
in

$28,->
2056,

exchange for the 283,438 shares of outstanding $5 pre¬

ferred sfock (no par) on the basis of $100 of
for

each

preferred'share.

but may be

Offer

expires

debentures

Feb.- 14,

extended1. Underwriter—None.

1958,*

'olume 187

Number 5706

Gulf Power Co.

The Commercial and Fina-ncial Chronicle

(2/20)

Norfolk & Western Ry.

it was announced company plans to issue and sell

Dec. 6

Bids

finance, construction

(1/22)

Southern

are

expected to be received by this company up to
noon
(EST) on Jan. 22 for the purchase from it of
$4,140,000 equipment trust certificates (third instalment)

£8,000,000- 01: first mortgage bonds due 1988., Proceeds—
To

(135)

Underwriter—To be *
bidding.1; Probable bidders:"' to mature semi-annually from May 1, 1958 to and in¬
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;-Blyth &
cluding Nov. 1, 1972. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.
Zo., Inci; Lehman Brothers; Eastman Dillon, Union Se:urities & Co. and Equitable Securities Corp. (jointly);
Northern Illinois Gas Co. (2/19)
Merrill Lynch, Pierce, Fenner & Beane and Salomon
jetermined by

program.

competitive

Dec.

& Hutzler

(jointly),; Bids—Scheduled to be re¬
to 11 a.m. (EST) on Feb. 20. RegistrationPlanned for -Jan. 24.:;'' J/..1; v'--'//'< / •'?
/■•
V"-V/'''vr',
Jros.

3Gulf'States

ici: 16 iit; was announoed 'Company .plans tQ>:|ssue and

of cumulative preferred stook (par
>100)/ Proceeds—To repay bank, loans. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Stone &: Webster Securities Corp.; Lehman Bro¬
sell

75,000 shares

Illinois

Bell

1960, to 15 insurance companies.

;

be received on^Feb.

'*$'■£'

tequipmenh trusi; certificates-

td:;an;;at^unlK
to
[finance three-fourths of the cost of new equipment,. Pro-

it Northern Pacific Ry.
Jan.

Iowa Public Service Co.

[Dec. 18 it

for Feb. 5.

on,.

(3/3)

was reported company plans to issue and sell

$10,000,000 of first mortgage bonds due 1988/ Proceeds—
repay bank loans and for construction program. Un¬
derwriters—HTo be determined by competitive./bidding.

[Probable bidders:
Halsey, Stuart & Co,:;'Eastman Dillon,
Union Securities & Co, and- SalomonBros.' & Hutzler

(jointly)?; Blair & Co. Inc.; White, Weld^ & Co.; The- First
Boston-Corp.a Kuhn,.Loeb & Co.' and A; C.*Allyri & Co.,
Inc.

(jointly); Kidder, Peabody & Coi-ahd Blyth & Co.
(jointly). Bids—Expected to be- received on March 3.

common

stock from 3,000.000 to

3,500,000 shares. Underwriters
Lehman Brothers and
Clark. Dodge & Co. handled last
equity financing which
—

done

privately.

Louisiana Power & Light Co.
Dec. 16, it was announced
company may borrow, $11,500,000-from banks
pending a final financing program relat¬
ing to the disposition of its
gas properties to Louisiana
Las Service
Co., a new company.
V- \

Mississippi Power
Dec. 4 it

Light Co.

was

announced company plans to issue and
sell,
mi May or June "of
1958, $10,000,000. of first
bonds.
Underwriter—To be determined by

probably
mortgage

competitive bidding.
c*'

Probable

bidders: .Halsey,

Shields---& Co.

(jointly); Blyth .& Co^.Inc.; Merrill

Pierce, Fenner & Beane, Eastman Dillon, Union
purities &;Co.; White;* Weld .& Co. and Kidder Pea¬
body & Co.
(jointly); The First Boston Corp.
Missouri Pacific RR.

Inc.; Equitable Securities Corp.; The First
Corp.; Kuhn, Loeb & Co., Merrill Lynch, Pierce,
Fenner & Beane and White, Weld & Co.
(jointly); Harriman Ripley & Co. Inc. and Eastman Dillon. Union
Securities & Co.-(jointly).
(2) For preferred stock —
Merrill Lynch, Pierce/Fenner & Beane and White, Weld
& Co. (jointly); The First Boston
Corp.;. Lehman Bros,
and Blyth & Co. Inc. (jointly);
Smith, Barney & Co.;
Harriman Ripley & Co. Inc.; Kuhn, Loeb & Co.
Anycommon

stockholders, with Merrill
underwriting,
i

Lynch,

made

Pierce,

common

Fenner

Beane

company

-a..

Canadian Fund, Ltd.

was

/£

announced company has
applied to SEC
permission to issue and sell in the
United States its

rjLco.mmon s^ares' °f which there are authorized
res ^par W anci 10.000 shares outstanding,

Pacific Gas

■

Nov. 4 it

& Electric Co.

announced company plans, following bend

was

sale about Jan. 21, to offer a small amount of common
stock to

keep the capital structure in reasonable balance.
Underwriter—Blyth & Co., Inc., San Fran^is.qo qnd New
York.
i
1
'
'
'
• '
...

Pennsylvania
Dec. 4 it

■

Electric Co.

B. C., Canada;

New Orleans PubHc
Service Inc.

sir?nnn nL^f anL°unced

jo,JU0,000 of first
nderwriier—To

company plans to issue and sell
mortgage bonds in the Spring of 1958.
be

determined by competitive bid¬
Probable bidders:
Halsey, Stuart & Co. Inc.; Lee
igginson Corp.;
Equitable Securities Corp. and Eastman

ding.

S°n Securities & Co; (jointly)/Kidder, Pea-/
,tone ^ Webster Securities Corp. /

ntly), White, Weld & Co.; Salomon Bros.

& Hutzler^-

announced company plans

was

$5,000,006 and $6,000,000

to raise in midcapital, about

new

two-thirds of which will be through bond financing and
the balance through common stock financing.. Under-

writer—For stock, may be Hornblower & Weeks. Wil¬
liam R. Staats & Co. and The First California Co.
(joint- /
ly). For bonds, to be determined by competitive bid- *

ding.
Only bidders in 1956 for $4,000,000 bonds were
Halsey, Stuart & Co. Inc.; Hornblower & Weeks and
(jointly).

Southern New England Telephone Co.

Dec. 12 it

announced

(2/26)

plans to issue and
sell $30,000,000
of debentures.
Proceeds—For repay*ment of advances received from American Telephone &
Telegraph Co. and construction program. Underwriter—
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co.; White, Weld & Co. and Kidder, Peabody & Co. •'
(jointly); Lehman Brothers and Salomon Bros. & Hutzler
(jointly); The First Boston Corp.; Merrill Lynch, Pierce,
was

company

Fenner & Beane.

Feb. 26.

Bids

—

Scheduled to be received

Registration—Planned for Feb. 4.

it Southern Pacific Ry.

(1/16)

purchase from

it of $8,400,000 equipment, trust certifi¬

cates to mature in
able bidders:

15 equal annual installments. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros.

& Hutzler.

Tennessee Gas Transmission Co.
Dec.

17 directors

1,000,000 shares of
Proceeds—For
Stone

Webster

approved
common

proposal to issue and sell

stock early in February, 1958.

construction

program.
Underwriters—
Corp. and White, Weld &

Securities

Co., both of New York.
Texas Utilities Co.
Dec. 16 it

was

(2/4)

announced company may

tional shares of

common

stock.

sell 340,000 addi¬

Proceeds—For construc¬

tion program.

Underwriter—To be determined by com¬
bidding.
Probable bidders: Kidder, Peabody \

petitive

Co.
and
Merrill Lynch,
Pierce, Fenner & Beane
(jointly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); The First Southwest Corp., Rauscher, Pierce
& Co. and Dallas Securities Co. (jointly): Lehman Bros;
and Bear,
Stearns & Co. (jointly);: Hastman Dillon,
Union Securities & Co. Bids—Expected to be received
up to 11 a.m. (EST) on Feb. 4. Registration—Planned for

Jan.

reported company plans to issue and sell
$29,000,000 of first mortgage bonds due 1988. Proceeds—
To repay loans and for construction
program. Under¬

10.

Tuttle Engineerings Inc., Arcadia,

was

Calif.

writer—To be determined by competitive bidding. Prob¬

Nov./6, Harry Oedekerk, Chairman of the Board, an¬
nounced corporation plans a public stock issue in
the^
near future.
Proceeds—For working capital and other

able bidders:

corporate purposes.

Halsey, Stuart & Co. Inc.; The First Boston
Corp.; Equitable Securities Corp.; Kidder, Peabody &
Co., Merrill Lynch, Pierce, Fenner & Beane, Eastman
Dillon, Union Securities & Co. and White, Weld & Co.
(jointly>; Harriman Ripley & Co. Inc. Bids—Tentatively
scheduled to be received up to 11 a.m. (EST) on Feb. 24.

Union Electric Co.
Nov. 11 it

issue
with

common

stockholders.

common

Texas, plans to
stock in connection

Union Electric Co.

issued

Underwriter—To be determined by

stockholders of Empire.

•

Pittsburgh & Lake Erie Ry. (1/8)
Bids are expected to be received by the company up to
noon
(EST), on Jan. 8 for the purchase from it of
$3,975,000 equipment trust certificates maturing annually
Feb. 1, 1959 to 1973, inclusive. Probable bidders: Halsey,

Aug.

Service

it Was

Electric

announced

Gas

Riddle

the

SEC

company

Airlines, Inc.
was

announced company

issue

shares and the

new

common

yet determined.

plans to register with
stock, the number of

price at which they will be offered not
The authorized

common

sell

reported company plans to issue and
approximately $35,000,000 first mortgage bonds.
was

competitive bidding.
Co. Inc.; Lehman
Brothers and Bear, Stearns & Co. (jointly); White, Weld
& Co., Blyth & Co., Inc., Eastman Dillon, Union Securi¬
ties & Co. and Shields & Co. (jointly); The First Bostan Corp. Offering—Expected early in March.
Probable

bidders:

Halsey, Stuart &

it Virginia Electric & Power Co.
Dec. 26 it was reported company

Co.

anticipates it will
sell in 1958 $25,000,000 of preferred stock.
Proceeds—
For construction program. Underwriter—May be Merrill
Lynch, Pierce, Fenner & Beane, New York.
Oct. 21 it

stock has been

from

tively expected to be received on June 10.

Company plans to sell $5,000,000 bonds. Proceeds—To
April 1, 1958. Underwriters

Underwriter—James II. Price & Co., Inc., Coral Gables,
Fla. and New York, N. Y., handled previous public

bidders: Halsey, Stuart &

common

stock at $3.25 per

Nov.

18 it

$5,445,000
ders:

—To

reported company plans to issue and sell
equipment trust certificates.
Probable bid¬

was

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

determined

Bids—Expected

Washington

July, 1956.

Seaboard Air Line RR.

issue and sell

it Virginia & Southwestern Ry. (2/27)
redeem similar amount due

share in

plans

bonds or debentures. UndCHvriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co.; Salomon Bros. 8c Hutzler; White.
Weld & Co.; Eastman Dillon, Union Securities & Co.:
Stone & Webster Securities Corp.; Kuhn, Loeb & Co.
and American Securities Corp. (jointly). Bids—Tenta¬
$25,000,000

7,500,000 to 15,000,000 shares. Proceeds
—To finance route expansion and for working capital.

offering of 500,000 shares of

(Mo.)

Nov.

Public

first

competitive

scheduled acquisition of properties and assets of Empire
Southern Gas Co., ForL Worth, Texas.
Shares to be
to

stock,

Underwriter—To be determined

bidding.
Probable bidders: Lehman
Brothers; Merrill Lynch, Pierce, Fenner & Beane.

187,818

(Mo.)

reported company plans to offer around

was

additional

1,000,000
common

it Pioneer Natural Gas Co.
Company, located in Amarillo,

increased
-

(2/24)

"nice—Vancouver,

the

$3,450,000 equipment
Probable bidders: Halsey, Stuart & Co.

fnc., Salomon Bros. & Hutzler."

Multnomah
it

may

Stuart & Co. Inc.: Salomon Bros. & Hutzler.

expected to be received by
Jan. 15 for the
purchase from it of

jv
Nov.. 25

stock

•

Bids will be received by the company at 165 Broadway,
New York, N. Y., up to noon (EST) on Jan. 16 for the

(1/15)

are

trust certificates.

Boston

Southern Nevada Power Co.

Stuart & Co.

Stuart

Kuhn, Loeb & Co.; Equitable Securities Corp.

Lynch

(3/4)

Underwriter—To be determined by competi¬
tive bidding. Probable bidders:
(1) For bonds—Halsey,

■

Industries, Inc.

stockholders approved the creation of an issue
of 16,000 shares of
$100 par preferred stock and an in¬
in the authorized

bidders:

securities.

crease

Probable

18 it was reported company plans to raise about
$20,000,000 next Spring, through sale of bonds and other

offering

[To

Litton

from

by the company on
it of approximately $3,-

Oklahoma Gas & Electric Co.

program.

Blyth & Co. Bids—Expected

Fenner & Beane.

;

Nov.

Brothers; Merrill Lynch, Pierce, Fenner 8c Beane; Equi¬
Securities Corp.;

for the. purchase

determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth &
Weld & Co.; Merrill Lynch, Pierce,

bidders:

Co., Inc.; White,

received

March 4.

Underwriter—To be determined by competitive bidding..,
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co.;
Glore, Forgan & Co.; The First Boston Corp^
Harriman, Ripley & Co. Inc., Eastman Dillon,,Union Se¬
curities & Co. and
White, Weld & Co. (jointly); Lehman
table

derwriter— To be
Probable

William R. Staats & Co.

(1/9)

Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan, Stanley & Co.; First Boston Corp.; Glore, For¬
gan & Co., White, Weld & Co. and Eastman
Dillon,
Union Securities & Co.
(jointly). Bids — Expected on

9 it was announced company plans to issue and sell
$9,000,000 of debentures (probably convertible). Proceeds

[March 5. Registration—Planned

bidding.

//'/

and for construction

expected

are

ceeds—To repay bank loans, etc. and for new construc¬
Underwriter— To be determined by competitive

[Dec.

replay, bank loans

to repay
Underwriter

tion.

spare parts. Underwriter—-To be determined by com¬
Probable bidders: Halsey, Stuart & Co.
[inc.; Salomon Bros. & Hutzler.

—To

$20,000,000

program;

Ohio Edison Co.;!

petitive bidding.

.(3/5)v

was reported
company plans to issue and sell
March, 1958, $15,000,000 of first mortgage bonds. Un¬

1958 between

Dec. 12 it was reported
company plans to offer $30,000,000 to $35,000,000 first
mortgage bonds du^ 1988. Pro-

[of

Iowa Illinois Gas & Electric Co.

—None;-;'''';

V'-'J'1■>

Dec. 3 it

$10),

Approximately

Probable bidders:

Nov. 25 the company announced the proposed issuance
of 456,813. additional shares of common stock
(par

700,000 equipment trust certificates.

other funds *tcx,buy 70 new loco¬
motives; costing approximately $12,250,000, and $250,000

;

1!:

Halsey,. Stuart &? Co. Inc.; Salomon Bros. & Hutzler.

[ceeds—Together with

Cinin+T

Co.-

bank loans and'for construction

Illinois Central' RR

nffj

19.

Natural-Gas

competitive bidding.

Southern Counties Gas Co. of California

been

■

approxi

i:♦/J- ;3fe
[Bidaar|me^ected^J#?
parly
[in January5 for the purchase from it "of a new,issue of

Co., Inc.

plans to
has

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co*; The First /
Boston Corp. and Dean Witter & Co.
(jointly); Blyth &

Bids

nnn

now

to be offered late, in January to common stockholders
on
the basis of one new share for each
eight shares
-held. Proceeds —

Telephone Co./;//

Company:.plans;,.construction expenditpres
mately $150,000,000 in 1958././
^<

decision

Spring, would consist of bonds. Underwriter—To be

determined

Dec. 16 it

Northern

company

irior to June 30,

ior

He predicted

made as. to

■

ids

1958.

$70,000,000 in new financing dur¬
the next offering, probably in

ing 1958.
the

.Glore, Forgan & Co.; Blyth & Co., Inc. Bids—Expected

reported to issue.. $3.4,000,000 of first
mortgage, bond a due 1990. Proceeds ^Eor.nonstruction
irjd to, redeem debentures, due Dec.,,Underwriter
—None. Bnnds will be sold- privately; frornitime to time

and

to be determined by competitive
bidding. Probable bid¬
ders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.;

[Co;■,? (joint)#);:; Bids^cheduled:W18.
1^. jy
1 a5

was

early

Edison Co.

Dec. 19, Harold Quinton, President, announced
company
would require around

consideration

Securities Corp; (jointly); Kuhn,
Co.; Glore, Porgaii
Cd.-and W.-C: :Lahgley &

loeb■&

Dec.

announced that

company

and .Equitable

thers

Dec.

this

$10,000,000

the form of the proposed financing, but no
is being given to sale of common stock
or securities convertible into common stock.
Proceeds-—
Fof construction program. Underwriter—For
any honds,

3 V.

Utilities Co.. (2/18)

raise

vived up

Californ:a

Oct.
in

the

bidding. Probable

Co.; Salomon Bros. & Hutzler.
Feb. 27.

Natural Gas Co.
authorized the sale of $5,000,000
Proceeds—For expansion Pf°£ra?\' N "

directors

debentures.

dervvriter—Blyth &
York.

by competitive

Co., Inc., San Francisco

and New

,The Commercial

National's Sales
At New Peak
Sales of the National Securities
Series of mutual funds established
an

By ROBERT R. RICH

all-time high of $79,062,224 in

1957, it was announced by E. Wain
Securities & Research Corp., spon^
and managers of the funds.,-

aors

The 1957 total ran 45% ahead of

the

National's
At the

sales.

investment
uidations

1957

$15,324,130 from

facing the uncertainties of the coming year in sound
financial condition, Hugh Bullock, President of Canadian.. Fund,
Inc., told shareholders in the mutual fund's fifth annual report.
Over the coming year,

However, Mr. Bullock pointed out, constructive elements in
economy should not be overlooked.
Among these

the Canadian

declined

is the Canadian dollar, which for well over a year has been at a
substantial premium relative to the United States dollar.
This
has generally worked a hardship on Canadian industries, such

better

than

newsprint producers, and has encouraged imports to the detri¬
exports.

ratio of sales to

for National

tions

the report stated, the Canadian econ¬
of uncertainty and readjust¬
of the postwar years.
;!•'

omy undoubtedly will face a period
ment following the rapid expansion

reports liq¬

1956's figure

This

$23,154,734.

year

time, the

same

company

for

best

Shape to Meet Uncertainties

Canada is

$54,566,293 recorded in 1956,

previously
for

Canada in Sound

of National

Hare, Vice-President

liquida¬

Securities

Se¬

ment of

Recently, he said, this trend has been in the process of re¬
versing itself and will correspondingly benefit Canadian industry.
Another factor, Mr. Bullock reported, is the fiscal soundness of
the Canadian Government.
Over most of the postwar
era, the
budget has not only been balanced but substantial payments
,

ries in 1957.

American

V-'

International

Corpo¬

ration announced that the net asset
value of its

stock at Dec.

common

31, 1957 is estimated at $13.88

share, after the payment of capi¬
tal gains dividends during the year
1957

totalling $0.75

Dec.

share. At

per

have

been made

the public debt.

"The rapid expansion of Canada's industrial capacities in the

per

past decade, the development of her vast natural resources,

the
stability of her political affairs and the growth of her population
all contribute towards a future of extraordinary opportunity for
the well advised investor," Mr. Bullock told shareholders.
*.
>
1

31,

1956,

amounted to

net

$18.23

asset

per

value

Formed
U. S.

share.

April,

1952, Canadian Fund,

Inc., was the first
opportunity to participate
now has 2,386,551 shares
17,000 shareholders. Total net assets,

mutual fund to offer investors the

in Canada's growth potential.

outstanding, owned by
with

securities

The fund

over
market quotations,

were $39,034,322 on Nov.
30, 1957, equal to $16.36 per share outstanding. Largest group
investments by the fund at the fiscal year-end were: 19.82% of
assets in petroleum: 14%; in paper and paper
products; and 13.76%
in non-ferrous metals.

An important event in the fund's 1957 fiscal year, the report
recalled, was the election to the board of directors in November
of the Right Honorable C. D.
Howe, P.CT., former Canadian Minis¬
ter of Trade, Commerce and Defense Production and
outstanding
leader in Canadian affairs.

We will be

you a

free

Total

Development Mutual Fund, Inc. This

No.

than 75

stocks selected from

among those

of companies active in the atomic

•

tribution

15,

Development Securities Co., Inc. Dept C
1033 THIRTIETH STREET, N. W.
WASHINGTON 7, D. C.

Selected
american
shares
inc.

Prospectus from your dealer

Selected Investments Co.
135 S. La Salle St.,

}ou

can own

Chicago 3, 111.

YOUR share

of American business

through

...

in
of

mutual fund

common
a

investing

stocks. For copy

prospectus-booklet of

facts about the

Fund, mail

this coupon today.

Address.

HUGH W. LONG
AND

COMPANY, INC

Elizabeth 3, N. J.

per

sir.
share

per

mos.)

"Adjusted

objective of possible
growth in principal and income.

i\im

field with the

Atomic

'<•:

outstanding

Income
-

•

shareholders

Asset value

holdings of

asset-

net

prospectus describing Atomic
fund has
.,

glad to send

1957.

include

cents

capital

per

gains

dis¬

paid

Nov.

and Financial Chronicle

Thursday, January 9,1958

Number 5706 ;

187

Volume

(137)

The Commercial and Financial Chronicle

role

For Bankers in

ihi

Quantitative Controls Only

j( One final comment as to con¬
sumer

tfr.

occasion indicates.

Favors

Consumer Credit Policies
:

stimulating

that constructive and

Continued from page 7

credit outlbok.in 1958 and I

done:

For

some

I advocated to
Bank
of

years

Federal

the

Reserve

automobiles,- will quickly reflect he cannot be, sure he will fulfill,

Richmond, and directly to the
it must be obvious / to dealer, staff and to individual members
purchaser and banker that on a of the Board of Governors of the
36-month term ~contract it- will Federal Reserve, that quantitative
There ..' can
develop
a
constant only be toward the very end of controls over consumer credit ex¬
pressure on the dealers to sell the period that either the pur- tension were as basically indicated
: these
cars to the public on such chaser
or
the banker has any as was the accepted and established
terms
of repayment as can be equity in the car—and that both quantitative control of commercial
'wangled out of the banks, finance parties will be lucky, if reposses- credit; that there was no more
companies, small loan companies, sion becomes painfully necessary, justification of the dictation of
credit unions, or
dealer-owned that the then used car will bring terms in consumer credit exten¬
financing subsidiaries.
anything like the unpaid balance. sion than would be proper in
itself in the pressure of manufacturers to have dealers build their
inventory to larger proportion.

terms, that
have become fairly universal in
financing the purchase of < new;
maximum

Today's

;

•

Advises No Weakening
seems

clearly—even

banks under which they can make

ridicu,- commercial loans; that the

automobiles, - represent a require-?. i0usly—obvious that any weakenment of one-third
cash or car jng 0£ these liberal terms can only
value
down- payment,
related serve
harm the future market
absolutely to the legitimate mark- jor new and used cars, and hence
lip of dealer-cost and the financing
against the interest of
of an unpaid balance that will mot manufacturer
and dealer
alike;
usually exceed 90 % of the dealer s ^at to weaken terms can only
cost, and certainly does not exceed serve t0 risk for the buyer a loss
the
dealer s total
cost, with a 0| ap his investment in cash and
maximum period of 36 months in
all
his
"sweated-out".: monthly
which, by equal monthly Pay~ payments; that weaker terms can
ments, the unpaid balance, mclud- materially add to the banker's
ing required insurance and finance credit rigk and set up possible

banker should

•

liquidated.

here, or oc-

intent

to be critical of any automobile dealer in seeking to move
cars off his floor
and out of his
showrooms or storage warehouses.
casion,

His pressures are likewise- intense
from the manufacturer's level. He

sale he can on
terms a buyer will meet,- to whatever degree these terms may be
relaxed
to
bring
the purchase

economy

source.

"It

purview of the would-

be owner's presumed

convenience

and

supposed capacity.
It's the banker's financial ability

his knowledge of automobile
values and his understanding of
and

human desires

that

may

om.

proper

distribution and

^ V.?,

t be

?hr6ueh

during this
Bankers

time

under constraint to

helping them to move automobiles
that represent employment, wages
in circulation, and in turn buying
by those very wage earners. They
constraint

under

help the

would-be buyer of a new or
car
where
the
buyer
and

used

the
fairly presume—even
though not absolutely—that the
buyer will be able to meet the

banker

can

next 36 months'

payments; with a
tacit understanding that if untoward events upset his scheme
of things, he can yet be accommqdated, within reason, to readjust his payments and not lose
the large investment he has made
and sacrificed

But

the

banker

under constraint to be

adequately
assured that the would-be buyer
of

new

equity,

used

car

has
his

has created
even

break

down

payment;
good—not just
a supposed or
speculative—chance
that in his present job he will be
table to liquidate his total unpaid
obligation on a steady month-tbmonth basis and not unwisely, in
so

and that there is

the economy.

has a .compelling responsibilityto provide all the funds that are.
needed to finance the maximum

uncertainty,: incur

and-, not

play our proper role, we

shall all,
collectively and individually, profit from the stability
we help to give to our economy,
the mitigation of its upturns and

For within the
mild expansions
excesses, and mild

its downturns.
outer limits of

mild
recessions versus panicky withdrawal from production, distribu¬
tion and consumption, we in the
banking field can find a prosperous life. We can find a great
versus

matured
in

the

is
is

economy

as¬

of that freedom, it
the
responsibility of the banking
fraternity to prove to the Federal
sured

basic

banking

can so

warrant
create

that

Board

Reserve

private

conduct itself

occasion

that

and

interference

no
no

free

;

would

therefore, as adults and
bankers be very sure that

conduct of the free exten¬

our

sion of uncontrolled terms of con¬

credit

sumer

sponse

that

acquit ourselves
be guilty of

not

and

men

and

acquiescent

re¬

to those who would bring
era of such unsound credit
reversal of this free policy

might in any degree be warranted
by our action.
cold

The

war

which

are

expensively
fighting,
and
the
prospect
of a hot war we so
mortally dread, is all of but little
purpose to win if in the great area
of the free world, which America
sa happily leads, we shall so con¬
duct ourselves that gradually the
state

becomes

our

master

instead

other

and

demands will increase.

Intra-union

strife

will

step

considerably—witness the Team¬
sters and various Building Trades
Unions.
ternal

And whenever these in¬
conflicts

break out, it is
always the employers and the
public who must absorb most of

the

economic

loss.

The biggest labor

contract ne¬
'58 will be with the
really too

gotiation in

auto workers, and it is

early to forecast just what majt
happen come next June. As of
now,
however,, my best guess
would be a major strike — with
pretty much of a victory for Mr.
Reuther

United1 Auto

his

and

Workers.

Over-all, labor will receive in¬
creased

rates

wage

other

and

benefits in 1958 with the average
over
the country running about

2% to 4%.

servant.

our

The

that

Now

ideas.

Let us,

necessary.

conduct

the

consumer

function
in
properly
stimulating the economy on a
sound basis, yet properly protect¬
ing the consumer, the long-time

banking

interest of the dealer

distribu¬

tor, and the manufacturer, as well
as the depositors of our own bank,
is indeed a challenge in 1959.

Retail

continues

trade

relatively bright spot in the total
business picture.
We expect a
new all-time high of
about $202
billion for the full year 1958.
Sales of non-durables should be

about 3%, and durable goods
will be off only slightly.

sales

competition at the re¬

However,

tail level will become

even

severe.

Continued

from

page

We believe the retail

situation

M«

work off some high emotional

can

in contesting for scien¬
tific achievement, and perhaps be
a little less inclined to turn to war
pressures

out.

satisfactory rate, but for many of
the

units

smaller

will

inventory

reasonably

good shape, by the end of this
month,
and
will
continue
so
through the coming year—prob¬
ably a moderate decline during

jT'The State of Business in 1958
as

way
a

it is

sense,

olden

the

mean

considerably lower net earnings.
One thing seems sure r— there
will be a plentiful supply of all
finished steel items during 1958.

first
half, and
build-up in the fall.
the

Variation

then

some

Commodity Prices

days

least, we believe

day. For 1958 at

will be confined to

fighting

the

the Killians and
Now

the Nesmeyanovs.

to return

to domestic

af¬

fairs, and our forecasts on various
important factors affecting busi¬
ness
and
investment conditions
during the new year.

consumption of goods that require
In general, 1958 will be a year
instalment payment terms to make of moderate downtrends in most
these purchases possible.
The economic figures—with the second
reason is that only thus can we half showing considerable
im¬
slow the downward economic provement over the earlier months
trend we face in early 1958. But of the
year.
likewise it is imperative that to
Total business volume is likely
the extent of his ability, the
to be off around 5%, with the low
banker's role of providing lor
these purchases—whether they be point coming around the middle
of the year. In terms of our United
for the new or used cars; or for
Business Thermometer (which is
home improvement, for home
equipment, for debt liquidation; or adjusted for both seasonal varia¬
tion and long-term growth—and
for other purchases of other goods
which now stands at about + 1*0,
or services—must come within the
framework of sound credit terms we expect a continuing downtrend
that are bearable and supportable to around +6 and then a recovery
in the late fall to around +15.
and feasible for the buyer, and
Stimulus for the second half
that are reasonable and appropriate as an investment of the rebound will come from increased
Government spending, the com¬
bank's funds that basically represent the depositors' money en- pletion of various inventory cor¬
rections and from easier credit. To
trusted on a temporary and readily
put it a little differently—it will
returnable deposit concept,

reward for our developing preslongtime obligation that obviously tige and public -appreciation1 of
era

that

Board

the

much to do.

likewise

the Federal
quantitative
qualitative
restriction

1957 announcement by
Reserve

our

ideas

of the freedom for all of

■.

The banker's role in-the extension of consumer credit in 1958 is;
imperatively a positive one. He

cooperate with the car dealers in

,are

but

^C^ul®ting

era.
are

reassurance
received in the May

period beyond the buyer's ability
to assume conditions under which
he may be operating at some

happy

was

expense

their

forcement

are likely to
follow a rather unusual pattern.
bit reminiscent
But, even so, prices are expected They will show considerable var¬
of
chivalry,
w ,m
to average firm to higher, as the
iation
as
between
individual
ymppf tupn? when opposing armies sat on year progresses.
items, but the over-all whole¬
Hptail
of nearby hillsides and watched a
The
Automobile
Industry
is sale
price index,' is expected to
? ti nl nnri follow few specially'chosen courageous likely to follow much the same
change very little.;,. The appear¬
knights do battle on the jousting
that
a
properly
pattern as" steel—off moderately ance will thus be one of
stability,
thJjvmker field to settle the issues ofA the

excessive and can be

EPJit 1!
fx,

in their

over

justifiable
K,,f

enthusiasm
permit
him to contract unwisely to meet
commitments

good deal of re¬

and

joicing

consumption of those products,

whipped-up
forward

with

was

that word

involved in the on-going
industrial
production,

must wangle every

within the

and not in selective
distant, un¬

responsive, and unrelated central

buyer resistance may his lack of wisdom and knowledge
develop, intense, persistent and or his supineness in responding to
demanding to lower the required pressures, he is misguided in his
one-third cash down payment (in- feeling
that he
is helping to
eluding an honest valuation of the stimulate the economy and has
used car representing part or all consented
to
less than
sound
of the required
cash payment), common-sense conditions.
The second dealer demand will be
If on the other hand, the overa
lengthening of the 36-month cautious banker pulls into a dugperiod of repayment. -The third, (m{. and covers the opening with a
and insidious, pressure will be to total
refusai to cooperate with
balloon a final payment for, say, manufacturer,
dealer and pura
12-month deal and a promise chaser
in
the
appropriate and
of refinancing over
another 36- sound purchase and financing ofmonth period; or a balloon pay- new and used cars, he will -in,
ment at the end of 24 or 30, or turn be rendering a
great dis-1
even ,36 months.
' ""
service to all the members of our
There is

appropriate

terms dictated from a

come,

and meet

needs out of deposits allowed for
that purpose

For Industrial Production as a
suggest the heed for corrective
or compulsory measures or control.
whole, we expect a drop of about
Unhappily,
there
are
many 3% Durable goods output is likely
people who feel that they prefer to be off about 6%, but nonto have a restoration of Regula¬ durables will hold up to within
tion W to solve all their needs for I or 2% of the 1957 figures. The
restrictive terms over consumer F.R.B. 'Production Index
(which
credit and to protect conservatives is now about 141). will probably
from the [ abuses of - radical pur¬ drop to about 135 in the spring or
veyors
of consumer credit.
The early summer, and then work
same
line of thought carried to back to around 145 by the end
of the year.
even a partial fulfillment calls for
progress toward the acceptance of
The
labor
situation
will
be
a
police state where
minority more turbulent in 1958 as em¬
groups can have their day of en¬ ployer
resistance to new wage

local weak-kneed

iosseS) i0 his embarrassment and would be invoked should con¬
his stockholders' detriment, if, in sumer credit control again become

dealers' pressures can be-

The

measure

borrowers'

local

his

costs, will be

for

and conditions

setting terms

a back swing of
pendulum.

then be time for

the

business

77% Steel Operations

•-

still

but

1957

from

reasonably

We
estimate
total
U. S. production at about 5.8 mil¬
lion passenger cars and
one mil¬

good

lion

year.

trucks.

history, the
foreign built small cars
really
take
a
substantial
of

will

"bite"

out

our

domestic

mobile market. At the

export
will

sales

auto

same

auto¬

time,

built

Taken together,

decline.

is not

billion

this

good combination for our

However, the most critical thing
is the
labor situation and we expect the
in the automobile industry,

win

fairly

substantial

wage,,and benefit increases—prob¬
ably after a strike against one or
more of the big 3* with G.M. the
most likely target.
1958 is

deal.
balance, living costs will
edge up a bit, though
less rapidly than in 1957.
In
Agriculture, we
expect
Farm Cash
Receipts (including
benefiet payments) to total about
.$32 billion as compared with $31.5
On

cars

makers.

unions

which you

continue to

For the first time in
sales

but this may be far from true in
the particular commodities with

not

likely to be

very

happy year for the boys in Detroit,
even/ though nationwide sales of
autos will hold up pretty well.

Building is one of the few in¬
where we expect 1958

to exceed those of 1957.
The gain will not be much—prob¬
ably only 2%-3% overall—but it
will be "up" rather than "down."
We forecast a definite turn for the

figures

building

This

ers.

as a

isn't

That

will

moderately

much

little—

and

lift

rural

also

sales

strengthen

farm land values.
On

the

whole, the farmers ar^
likely to fare (relatively) a little
better than their city cousins —
assuming, of course, that we hav&
a normal crop year in '58.
i
In Foreign Affairs, as I men¬
tioned earlier, we expect a con¬
.

tinuation

war"

cesses

with

the

with

"hot

various

world.

dustries

1957.

and with it should go a l%-2%
gain in the "net income" of farm¬

ing
Brightness in Building

better in residential

increase, but it is

The
of

our

so-called

spots"

"cold

develop¬
over

tl|.e

recent scientific

suc¬

areas

the

Russians—together
well publicized failures

in that area—will make the Rus¬
sians

position

cocky

and -our

own

difficult.
Economic expansion in most
European countries will slacken,
and their currencies
especially
more

—

of the result of somewhat easier mort¬ the franc and the pound—will be
under further pressure. Even the
major industries which go to make
gage
money,
and a continuing
up that broad total called "Gen¬
uptrend
in
utility and public economy of Canada—an outstand¬
eral Business," we estimate that
ing strong spot for the past sev¬
works construction.
Steel production will
be about
eral years—will be less buoyant,
All sorts of Building Materials
106-108
million
ingot
tons
in
and the premium on its dollar
will be in plentiful supply, but
1958. On the basis of a 140-million
will decline.
;
i
Looking

ton annual

—J of
I

average

now

some

capacity, this means an
76-78%
capacity
opera.
_

tion over the year. For the large
low-cost producers, this is a fairly

total

tinue

building costs will still con¬
to edge upward because of

unyielding
the line.

wage

rates

all .along

United States Exports are
to drop

likely

from an estimated $21

Continued

on page

bi!-*
47

The Commercial and Financial Chronicle

(138)

Thursday, January
g,

■

'I,.

The

Indications of Current

latest week

Business Activity

week

St^^ngots^and

.Jan. 11

capacity)

castings (net tons)

Week

§60.5

.Jan. 11

Month

Week

•

oil

98.4

1,770,000

ALUMINUM

Kerosene output (bbls.)
Distillate fuel oil output

2,519,000

£7

6,939,500

6,914,800

6,829,350

Dec. 27

7,876,000

8,395,000

27,926,000

7,712,000
27,264,000

7,807,000

~"SeC' Vn
;———Dec.

27,205,000

28,176,000

2,509,000

2,436,000

2,792,000

13,106,000

12,554,000

14,565,000

7,322.000

9,004.000

185,203,000

185,796,000

~ec-

(bbls.)
Dec. 27
Residual fuel oil output (bbls.)
<.
Stocks at refineries, bulk terminals, in transit, in pipe lines—Dec; 27
Finished and unfinished gasoline (bbls.) at
Dec. 27

(bbls.)

at__.—

Distillate fuel oil

Residual

13,200,000.

7,392,350

aluminum

October:
Total

(bbls.)

;

•;

.».•••

sales

gas

Mixed

8,019,000
194,165,000

——Dec. 27

28,754,000

27,719,000

32,661,000

31,799,000

Dec. 27

151,769,000

134,809,000

58,906,000

152,383,000
\ 57,674,000

167,594,000

.Dec. 27

58,807,000

42,649,000

Revenue

freight loaded (pumber of cars)
Dec. 28
Revenue freight received from connections (no. of
cars)—Dec. 28
ENGINEERING
U.

CONSTRUCTION

Steel

(net

^410,022

590,343

552,316

458.797

553,722

-i

548,125

State

and

——

—Jan.

Jan.

municipal

Federal

COAL OUTPUT (U. S. BUREAU OF MINES):
Bituminous coal and lignite (tons)

Pennsylvania

anthracite

(tons)

$259,276,000
120,818,000

$273,767,000

138,458,000
123,326,000

: V

487,546

ARJERICAN

522,558

Ar:

14,732,000

■——Dec. 28

5,720,000

—Dec. 28

273,000

——

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE =100
Dec. 28
EDISON ELECTRIC INSTITUTE:
Electric

output (in 000 kwh.)_

FAILURES

(COMMERCIAL AND

Jan.

INDUSTRIAL)

—

DUN

METAL

PRICES

(E.

—

Export refinery
(New York)
(St. Louis)
tZinc (delivered) -

135,124,000

118,735,000

138,390*000

16,417,000

6,428,000

40,578,000

9,380,000

8,090,000

6,171,000

374,000

355,000

469,000

;

147

*274

159

112

11,692,000

11,218,000

12,315,000

41,671,006

203

166

28ff

222

—Dec. 31

5.967c

__Dec. 31

$66.42

Dec. 31

$32.83

Lead

Zinc

(East St.

Aluminum
Straits

$32.33.

);

-.Dec. 31

Dec. 31

at—

—

Louis) at-

(New York)

—;—
=

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds
*

Average corporate
Aa

,—,——

5.967C

26.600c

26.525c

35.675c

22.100c

21.950c

22.375c

33.325c

Dec. 31

13.000c

13.500c

16.000c

12.800c

13.300c

15.800c

Dec. 31

10.500c

14.000c

Dec. 31

10.000c

13.500c

Dec. 31

26.000c

25.000c

Dec. 31

91.750c

92.625c

91.250c

99.875c

Jan.

93.80

93.42

93.00

Jan.

93.38

92.93

89.78

101.47

101.14

93.08

98.88

98.09'

97.31

93.08

97.62

92.06

89.37

95.6*2

82.65

81.05

89.23

90.77

Jan.

92.64

92.06

.Jan.

96.38

96.07

Slab

Jan.

3.03

Jan.

4.18

4.21

3.66

3.68

86.91

93.82

.90.06

96.54

92.79

95.16

3.06

'■■"•

3.92

3.82

Stocks

4.20

CIVIL

Public construction

;

State

Month

4.00

4.22

4.06

389.9

439.5

All

round-lot transactions for
account of
purchases
Short sales

206,345

254,413'1

>"250,778-*

207,805

290,705

288,876

295,993

280,141

388,664

340,551

108.68

110.61

276,494

368,256

108.51

108.26

1,439,940

1,497,380

1,534,060

268,600
1,116,820

1,724,210

304,800
1,147,680

537,830

328,230
1,261,210

1,042,710

1,385,420

1,452,480

1,580,540

1,589,440

343,600

397,110

347,750

381,420

25,900

44,900

126,400

28,740

352,490

403,520

361,920

313,860

378,390

448,420

.488,320

342,600

.Dec. 14

456,097

.Dec. 14

505,535

561,681

104,000

573,745

130,300

-Dec. 14

163,120

419,320

88,030

527,102

Dec. 14

472,680

474,140

P23,320

657,402

635,800

562,17Q

Dec. 14

2,239,637

2,400.025

2,443,490

398,500

480,000

Dec

827,350

1,888,630

IDec.

2,078,302

1,877.310

2,287,130

2,558,302

2,704,660

sales

FOR ODD-LOT ACCOUNT OF
ODD-

Customers' short sales.
Customers' other sales
value

;

■__!

—

1,225,767

1,244,973

1,250,967

$50,692,078

$51,551,986

$64,101,832

Dec. 14

1,154.535

1,084,277

Dec. 14

12,082
1.142,453

1,072,486

960,910
23,100
937,810

1,060,894

11,791

1,055,460

Dec

..."

$43,203,921

$43,552,805

$39,971,650

$51,258,402

334,150

320,570

246,160

270,350

and

electricity.—•_

and

»Other

——,

boys'^_____22;_

and

girls'

SERIES

(1947-49=100):
Commodity Group—
All

2—2.

and

recreation

STORE

334" 150

320"! 5 70

441,510

452,460

Monthly
one-half

603,700

663,830

11,695,090

11,668,470

12,298,790

12,332,300

foods

III

.Dec. 31

118.4

_Dec. 31

and" foodsIIIIZI

7Urf affafnUfCT 995;000 barrels
g

investment
Jn?

farm

Plan

—I1?""

246,160

•

on
on

137.6

104.5

:•.

134.3

.104.8..

-107.9

123.0
133.8
111.8

103.8
124.5

.128:7

102.0

107.7

,109.4

108.4

100.8

100.6

100.4

129.0

128.3

NEW

92.5

135.8

182.8

1812

SECOND

:*•

.<■ 126.2
92.1

133.2
173.4

123.4

125:4
139:7

_2_2__i_2__

SALES

92.6
140.0

126.2

134.5

■*'

121.4

114.4

113.4

109.0

126.8

1262

123.2

FED¬

FEDERAL

YORK—1947-19

of November:

Stocks, seasonally adjusted

154

157

133

1-58

.-'*126

160

123

*119

125

159

*155

,*157

138

.*138

*137

PAYROLLS—U. S. DEPT.
IaABOR—REVISED SERIES—Month of

•

manufacturing (production workers
goods——————
2_,

Nondurable

Employment
'

indexes

•

goods

CAN

1,228,980
11,260,460
12,489,440

SELECTED

544,540

RYS.

12,042,060

118.4

93.1

117.9

93.9

116.3

91.6

107.5

88.5

106.3

.Dec. 31

98.2

96.8

125.8

92.3

125.8

80.7

125.7

124.6

runs.

ons.

§Based

Net

—

new

annual

STEEL

133,495,150 tons

168.2

'16,787,000

9,569,000

*9,691,000

6,986,000

*7.096,000

17,180.000

10,067,000

'7,113.000

CONSTRUC¬

November:

INCOME ITEMS
of

railway

187,653
293,369

CLASS

••

,177,178

338.892

1330.950

276,045

September:

operating income7_______2..2
.2

income

Miscellaneous deductions from income
■•;

Income

Other

after fixed

fixed

charges

.2——

deductions

•'

;2_

taxes

Dividend appropriations:
On common stock
,

income

99,188:846
68,111,937

63,664,980
49,040,108

28,454,137

$97,623,320
*49,323,351
^116,946,671
4,539,064
^4,126,146
114,798,028 -112,820.525
83,816!036* -B2,476.573
4,355,867
4,544,1H
"77,932,396
79,460,169
^46,927,503
49,199,298
39,111.480
44,710,314

$96,438,896
22,839,096
119,337.992

•

preferred stock

Ratio

104,124,158

4,446,957

Net income 2—,
income

$84,248,246
19,875,912
4,935,312

charges

Depreciation (way & structure &
equipment)
Federal

capacity of

108.3
'

(AMERI¬

(tonnage )-^-estimated
(tonnage)—estimated™.

Income available for
.

103.7

hoc—
>
orders not reported since introduction of
delivered basis
at centers
where freight from East St.
Louis exceeds

162:7

108.0

/104,3

(Interstate Commerce
Commission)—

Month

12,586,600

•

16,555,000

STRUCTURAL STEEL

INSTITUTE

102.6
159.5

I—.—

•

Nondurable goods

474,340

13,392.000
'7,839,000
5,553.000

*7,335,000
*5,507,000

manufacturing

Durable

*12,902,000

emploj^ees In manufac¬

turing industries
All

•

Average=l00).—
...

Estimated number, of

12,688.000
7,290,000

5,398,000

Avge.=100)—
—2

manufacturing

FABRICATED

522,180

(1947-49

manufacturing

Payroll
All

goods
indexes

•

Durable
;

270,350

.Dec. 31

of foreign crude
tStmAr9^
ba4sls of 128,363,090
Western
Zinc sold

115.2

v...

115.8

112.2

140.3

(average monthly), unadjusted.
(average daily), unadjusted..L—-2—_1
Sales (average
daily),' seasonally adjusted.
Stocks, - unadjusted
i2
t

Other income

„Dec. 31

commodities 0ther""than

J an

DEPT.

138.0

126.6

126.7

2__-—_

DISTRICT,

Average=iW0—Month

•136.2

...

Meats
AU

22_

—

RESERVE

98.8
111.1

; :.V

U6.2

-1:

129.7

1—22_—

Sales

Total

commodities
produots

Farm

Processed

126.8

109.4

:2_2__2_____

care

Shipments

—

115.6

;

111.3
-127.0

2---2i_____

TION)—Month

Dec. 14
NEW

i:'

——2

—2—22—-~2—Li-

Contracts- closed

PRICES,

114.5

129.4

Sales

STOCK

Dec. 14

—

106.3
114.2

____2'2_T_22_:

RESERVE BANK OF

TRANSACTIONS

Total sales

LABOR

104.6

—

WHOLESALE

114.5

112.9

;■

131.4

■

114.6

—22

goods and services-'

ERAL

12Q,82f

117.8

116.4
114:7

114.3

Private

:'*•

430,995
;

121.1

116.0

114.1

■■•■••

—

Personal care—
Other

1,038,408
: 551,824

106,691.

131.6

.22

apparel

Reading

$L590,232
,

560,310 J

•

52,350

:—^

Transportation

(SHARES):

sales

;

shares
Dec. 14

Other

667,001

—.22

Solid fuels and fuel oil

All

Dec. 14
—Dec. 14

564.899

557,135
504,785

bakery products

Household operation

5,434

Dec. 14

vegetables—7
Other foods at home__—
2-

-■.•■Gas

2,679,375
445,000
2,049,210
2,494,210

1.248,520
$48,138,353

...

THE

409,765

1947-49=100—

—

sales

ROUND-LOT STOCK

$1,231,900

November:

~^Dec.

FOR ACCOUNT OF
MEMBERS
round-lot sales—
Short sales

$966,900

EN¬

—

Month

—

136.3

All

„

Round-lot sales by dealersNumber of shares—Total

Total

122
743

and

Housing—

II—Dec.

;

295

121.6

Fruits

45,866

EMPLOYMENT AN.D

Dec

by dealers (customers' sales J—
orders—Customers' total sales

31,466"

488

Dairy products

ST0CK SALES

21,867

160

Meats, poultry and fish___l
.

—

TOT£™»°™D"LOT

(tons).

W;r^'y

Cereals and

DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE
SECURITIES EXCHANGE
COMMISSION:
Odd-lot sales by dealers
(customers' purchases)—t

■91,808
110,433
'•■70.183

RAILROADS—

Footwear

Dec

members!—

Total sales

Round-lot purchases by
dealers-

81,492

79,333
155.925

in service_._-_J__

INDEX

Housefurnlshings

IDec
"Dec

Dec. 14

79,754
83,148
152,531

—1-^1

home

Women's

'
Dec!

Total

Number

I 5,357,869

November:

DEPARTMENT

sales

Total sales

Other

*•

items

Men's

floor—

sales

Short sales

5,08(3,540

6,095

.''119,626,

order (end of month)

—t.

PRICE

391.2

Total

Dollar

7*65,713

4172
"i

niunicipal——

)

3.98

CONSUMER

purchases

and

Food

391.3

initiated off the floor

value

•.»

■

MBRI¬

Short sales

Dollar

AMERICAN

construction

Food

sales

Number

CONSTRUCTION

4.03

Odd-lot purchases
Number of

period

ENGINEERING

Medical

TRANSACTIONS

Private

3.90

Jan.

n,,„

LOT

(tons

pounds)—
(>tofts)Ti_2l

locomotive units

4.47

Jan.

Total sales

STOCK

grades

—-

2,000

GINEERING
NEWS-RECORD
December (000's omitted):
Total U. S. construction

purchases

Other

259.213,000
19,725,000

16,697,000

-.7

•

New

4.46

4.15

—Dec!

—

output all
of

Month of November:
Locomotive units installed

;

sales

Other

end

5.10

3.97

jan.

Short sales

transactions

270!580,000

5,369,490

'•

—

(tons

4.27

4.64

106

on the

smelter

4.97

4.40

Dec. 21

Total sales

Total

59,194

ASSOCIATION

SPECIALISTS:

Other

24.347,000

CAR;

Unfilled orders at end of period

Transactions of specialists in stocks in
which registered
Total purchases

Other

235,381,000
211.616,000
"23,737,000'
13.000
-r ' '28.000
38.954,000 —31.281,000
13,584,000
42)276,000

210.379,000

23,795,000
21,000

tons)-—

pounds)

4.25

4.27

Dec. 21

transaction^ initiated

zinc

2,000

4.94

4.23

Dec. 21

4.03

3.94

(tons) at end of period

Short sales

(barrels)

(barrels)-

234,739,000

output'Xbarrels)j.X--i2 i;-206,605.000

3.54

4.43

Jan.

Dec. 21

TRANSACTIONS FOR ACCOUNT
BERS, EXCEPT ODD-LOT DEALERS AND

Total

oil

3.09

4.36

ROUND-LOT

4.34

OIL, PAINT AND DRUG REPORTER PRICE
INDEX—

Other

230,421.000

•

output

Shipments

•

Other

Jan.

Percentage of activity

7.930,957

November:

MOODY'S

AVERAGE

10,555,500

"'i

V ? 6,171,674.

INSTITUTE—Aloitih

3.87

COMMODITY INDEX
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
Production (tons)

95.16

83.03

91.05

Jan.

1949

*9,197,717'

6,550,690

;

production (barrel^ of-'42 gdl-~

(in

••'
■.

crude

carriers

f't.'i'V

128,700

'-V

AMERICAN TRUCKING
ASSOCIATIONS, INC.
IT"—Month of October:."*;.
;.
Intercity general freight transported by 366

87.56
-

92.35

——

Railroad Group
Public Utilities
Group
Industrials Group
—

Unfilled orders

1 '•"
8,393,000

;> :(end of month)__

$63.50

26.575c

Jan.

MOODY'S BOND YIELD DAILY AVERAGES:
U. 8 Government Bonds
corporate

9.30C
89,900

Month of November:
:,.v;
.:* -•*
'}■'?V-:
Qrders for new freight
carsiil—^ '(1,070
2,206
New' freight cars
V 8,295'.
delivefed'iii^l-i^ii^i'ti*
.;7;i42
Backlog- of cars on order ; and' undelivered

$63.04

5.129,000'
4.985,800
,'*L- 14.50O

;

—■■

gasoline output

Benzol

710.500

-,>'>123,500

Crude oil imports (barrels)———31;274,000
Refined .product imports (barrels
12,073,000
Indicated consumption domestic and
export
(barrels)
2
Increase all stocks
,051,000
(barrelsjlLlrr—

5.622c

5.9670

Dec. 31

Jan.

Railroad Group
Public Utilities Group
Industrials Group

Average

4,738,500

4net^.tonsj^r

each)

Natural

•

-—r

——

4,837,700

5,238,300

132.316'
47,179

AMERICAN ZINC INSTITUTE, INC.—Month of

(primary pig. 99^) at

tin

domestic

Ions

QUOTATIONS):

Lead

5,372.300

November^.Clit-V^-/•

products,,

PETROLEUM

of September:

178,968,000

Electrolytic copper—Domestic refinery at—

192,976

INSTITUTE:
castings produced

for
of

steel

AMERICAN RAILWAY

Jan.

Pig iron (per gross ton)—,
Scrap steel (per gross ton)__

143; 44b-)'

175.085

STEEL

steel

October

Domestic

BRADSTREET, INC.
IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)

$323,736,000
144,768,000

151,541,000

$200,97,0,000
75,807,000
125,163,000

122,226,000

—

Total

-For month

thermjs.U-—^.—t'ri« ^

AND

and

tons)—Month

Month

I"*,.'
Jan.

Private construction
Public construction

Ago

IRON

ingots

Shipments> of

ENGINEERING

—

construction

"Year

•?

NEWS-RECORD:
Total

'Month

'129,278

therms),—;p

sales

gas

AMERICAN

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

Month

(short tons), end of Sept.

;
'Natural gas sales (M therms
rManufactured gas sales
(^^e.rmS')Pi.;_-.i.l'>

2,746,000

7,581,000
189,486,000

(bbls.) at

oil

fuel

———

thatdate:

MINES):

AMERICAN GAS ASSOCIATION

Kerosene

are as

Crude

Gasoline

(BUREAU

(bbls.

average

either for the

are

Latest

Production of primary aluminum in the U. S.
(in short tons)-r-Month of September—.!
Stocks

output—dally

condensate

and

gfHlons each)
1
runs to stills—daily average (bbls.)
output (bbls.)

of quotations,

cases

Ago

69.2

*1,501,000

■!

AMERICAN PETROLEUM INSTITUTE:
Crude

or,

Year

Ago

*58.6

§1,548,000

Dates shown in. first column

that date,

production and other figures for the

cover

-•>

AMERICAN IRON AND STEEL INSTITUTE:

(percent

month available.

month ended

Latest

indicated steel operations

following statistical tabulations

fixed charges

;

'22,364,652

27.871.412

906,297

4,652,167

,r21,314.262
A,488.130

3.19

3.71

3 72

Number 5706

[Volume 187

The Commercial and Financial

Here,

\Continued irom

page

was

the

course,

maturity

[lion

a great many portfolios quite
comfortably. And again, the notes,
priced at 99 and carrying a 4*6%

1958

coupon,

Inv_Wnt

investment

year.^ rV

[the

cast

of^tjeach^pt]h r v

1958, but; they

spotlight m

twiir be

will

;

Both

e^ger

appeared

soL

cur^

five

{

ahead

•.

buyers

appear

of a

| duction
.m lh^ discount l^te. ;TMs . high;
levels .;by ^both Consumers bonds
means, that credit will be easier
and Government at all levels^
iin '1958-—good
men

Federal,.. State and local.,,

somewhat lovver

news

for business-

making

large-

\
. will be reduced, but this will be
as much of their money as posfinancing:.increased de- sibie to work at current levels of

expenditures and Housing,
.as compared
with .this,year, andUwhich will be higher in 1958.
municipal financing will leach a
(4)
The
long-term
growth
new high ofaround $7 biluon dol-. •:forces;/-of
increasing ^ population,
lars.
../-"I
and
technological improvement
The Bond jMarket—which has: are; ^working all the time, even
about reached the boiling point-/.though their effects may be overthese past few weeks—will calnr:shadowed
temporarily by other
increase about 10% lense

mp '

/Corporate Earnings will be off.
but not as much as many dll63lS0llf
are
now expecting.
We estimate -W.-V
"" |j
the <tecline^ver-all~-to be only
about

bad .>■•■■#£;*•% ••
relatively^'high I
7^
too

5%,: which -isn t

considering / the

substantially.
The

„

Current investor interest is perhaps best illustrated by the fact
that potential buyers are looking

seems

the

even

;

of
100.2099.
Reofferings was
slated at 101 for a yield of 4.07%.
Despite the fact that four of the
bids were for a 4V4% interest
rate, the bonds moved out quickly,
with the "pot" reported cleaned
within 15 minutes,

the

Bow-Jones
—uuricg
xnuusu-icu
Industrial Average
nvciuge
to
iu
j-'viw

between 400

and

480

dur-

ing the coming year, with a num-r
ber of sizable intermediate moves
down. I hasten ;to
add, however, that this forecast is
and

little

than

(Special-to The Financial

National

First

Buildine

•

illustrated

the

clearly

manner

^fforinoc

,„Arp

•

-—

even

though

NOTICE

Experienced
and

with

Wall

member firms

known

Man.

...

Street
.

the

^-CHARTERED 1799'

institutional
,

Write

Box

1212

mercial .and .Financial

^Chronicle,

Park

Place,

N. Y. 7, N. Y.

dividend of 60c per

payable February
of record at the
January 15, 1958.
books will not be

•'

THE

close of business

Chase
Manhattan
IBANK

transfer

closed in connection
ment

redeemable

are

option of the company at
regular redemption prices ranging
from 104.56% for those redeemed
those redeemed

on or after Jan. 1,
special redemption prices
range from 100.48% to 100%. The

debentures

new

redeemable

are

at. the

option of the company at
regular redemption prices ranging
from 105.25%

for those redeemed

prior to Jan. 1, 1959 to 100% for
those redeemed

on or after Jan.
1,
special redemption prices
range from 100.75% to 100%.

1982;

Forms Carleton Co.
BOSTON, Mass. — Carleton D.
Adler is engaging in a securities
business from offices at 262 Wash¬

ington

Street,

under the firm
Company.

of Carleton &

name

DIVIDEND NOTICE9
GREEN

BAY
&
WESTERN
RAILROAD COMPANY

Bcjard
$50.00

of Directors

the

amount

has

payable

fixed
on

and

declared
j_>e-

u.aos

banking group which,

are

Jan. 9,

offered

$20,000,000 of The Wash¬

ington

Water

Co.

Power

first

series due

mortgage bonds, 4Vs%

1988, and $10,000,000 of the com¬

pany's 4%% sinking fund deben¬

1983.

due

(Payment No. 39), out of net earnfor the year 1957, payable at Room No.
3400. No. 20 Exchange Place, New Y01I1 5, New
York, on and after February
10.
1958.
The
dividend on the stock
holders
of
record
at

The bonds

are

priced at 100.43% to yield 4.10%

the

Class

"B"

will

paid

Debentures

dose

stock¬

busnjass

the Class "A"
he returned to

will

or agents
who should then present
City Bank Farmers Trust Companv
(Corporate Trust window), No. 2 Wall Street,
New York City, New York,
for exchange for
similarly numbered Debentures in bearer form
with coupons attached.
Class "A" Debenture
coupons will be numbered 63 to 110, inclusive,
and
Class
"B'1
Debenture
coupons
will
be
numbered 40 to 87,
inclusive.
Owners of Registered Debentures should present
or
mail their Debentures to Robert Winthrop
&
Company,
20 Exchange Pine \
New York
City, New York, for transfer to b arer form.
Those presented in person will be processed by
Robert Winthrop & Company and should then
be presented to City Bank Farmers Trust Com¬
pany for exchange as stated ab~"^
Thr-« re¬
ceived
by mail will
be processed by Robert
Winthrop & Company, who will deliver them
to City Bank Farmers Trust Om*>anv for -ex¬
change into coupon Debentures which City Bank
Farmers Trust Company will
irMl directly to
the presenters.
Hereafter, the Cass "A" and
Class "B" Debentures will be issued only in
owners

them

bearer

form.
W.

DIVIDEND NOTICES

the

payments,

New

York, N. Y., January 6,

cox, Secretary
1958

AMERICAN
CAN COMPANY
COMMON
December 30,

STOCK

1957 a quarterly

divi¬

share was declared on
Stock of this Company, payable

dend of fifty cents per
the Common

1958 to Stockholders of rec¬
of business January 22, 1958.
remain open. Checks will

15,

February

ord at the close

Transfer books will

DIVIDEND NO.

be mailed.

JOHN R. HENRY, Secretary

Board

The

Consumers

Cerro

Pasco

Directors

Power

Company

has

authorized the

payment

dividend of 60

cents per

Common

February

Corporation

189

ON COMMON STOCK

owners

outstanding
Stock,
payable

the

20,

1958

of record January 17,

1958.

5% Stock Dividend

DIVIDEND ON
PREFERRED STOCK

The

Board

Corporation at

held

meeting
7,

Directors

1958,

Tuesday,

declared

a
stock dividend at the rate of 1

share for each 20 shares, pay¬
on

February 14, 1958, to

stockholders
close

of record

business

the

January

20, 1958. The Transfer
will not be closed.

Books

Michael D. David

Secretary
300 Park Avenue

New York 22, N. Y.

The Board of Directors also

authorized the payment

has
of
the

quarterly dividend
Preferred

Stock

fol¬

lows, payable April 1, 1958
to
share owners of record
March 6, 1958.

CLASS

PER SHARE

$4.50

$1,121/2

$4J52

$1.13

$4.18

$1.04

CONSUMERS POWER COMPANY
JACKSON, MICHIGAN

with the pay¬

SewlHfOttUtatcWtefcQA"

of this dividend.
.

bonds

new

the

and

Co.

Marks

14, 1958 to holders

The

Com¬

de¬

stock of, the Bank,

well-

buyers in U. S. and Canada.

Manhattan Bank has

share on
13,090,000 shares of the capital

clared

Syndicate

Institutional

Years

The Chase

lower interest cost.

The
at

January 24. 1958.
Following the above

joint managers of an investment

able

AVAILABLE

de¬

'ngs

Inc., White, Weld & Co. and

January

DIVIDEND

the

nor

refundable

are

Debentures

Kidder, Peabody & Co., Blyth &

Cerro de Pasco

have tried

bonds

fa¬

(Payment No. 62) and a dividend of
toe payable on the capital 3lock, and
$15.00 to be the amount payab.e on Class "B"

Offered to Investors

guess"

bids

open

Bonds and Debentures

Bank $50 million of 20-year notes, for
example, went out quickly.

DIVIDEND NOTICE

"educated

day Pacific Power

Wash. Water Power

which othei offerings we e a with Walter & sorbed. Commercial Credit Co. s

affiliated

Company,

are

The market's temper was

Chronicle)

DENVER, C o 1 o.
Ronald L.
Barkdoll and Lois L. Hughes are
now

Issues

Other

company's

bentures

tures,

°r

cerned.

the
dis- ,

on
~

$5.00

Laurence

Underwriters seemed a bit
anxious to get things moving in
|he capital market, if the brisk
bidding which attended the openH18' of b^,s.
Southern Ohio Electric Co. s $14
million of 30-year bonds was a
g°°d barometer,
This offering drew a total of
no less than six competing bids
with the successful group naming
a i%% interest rate and a price

expect

bankers

preferred stock and, on Thurs¬
Alabama Power
Co. will
market $23 million of bonds by
competitive bidding.

Co.

days
week ahead,

people

bentures

day,

for several

VanflarllflQf U RnhlllCAII Ibng periods in the last 25 years.-

entire

for $15
of bonds and $10 million
will

as a

both

much

according

Banking, Cements, Drugs, rewtrir l|
Viini II 1111 til Air
Utilities,: 'Finance Companies, MQITIII VfHit lli UllUlUy
Shipbuilding, Tires and: Rubber : Vanderhoef
&
Robinson,
52
and Tobaccos—to mention a few.
Broadway, New York City, memThe most notable "sour spot" in bers of the American Stock Exthe earnings picture is Railroads,
change, on Jan. 1 admitted WilThe outlook for Dividend pay- ijam
h. ■ Dudley' to
partnership.
rnents
in
1958
is
pretty
good. Schuyler Pardee retired from the
Probably not quite up to the rec- ffrm on Dec> 31.
ord high of '57. but it won't miss
by more than 2%-3%, even with
*
.
*
p!
lower earnings. The answer will
TOrm American inv. Lo.
be a somewhat larger percentage
SEAFORD, N. Y.— American
payout of current earnings.
/
.Investors Company has been
.In the Stock Market, we expect, formed with offices at 2111 Stira good
deal of "jumpiness" from rup path, to engage in a securities
day to day and week to week— business. James B. McCreery is a
.resulting from temporary swings principal. A branch will be mainof
public
sentiment
which,
in tained at 18 Mt. Vernon Avenue,
turn, will often be based on rel- Mt. Vernon, N. Y.
atively superficial happenings so
.
far as our total economy is con
Two With Walter Co.

range

calendar

as-iWailUCinilCI a nUMIIIOMII;-

particularly good for such lines

Specifically,

new
issues coming on the
evincing interest
prospective offerings which are

market. They are

outlook

earnings

just now.

-■>;J^°n ; of vthe Chicago office of fributing side of the business.
^hearson, .Ilamnull & Co.,
From all indications, we are
Soutw™ 5a"e •
+een once again in a market where the
named -manager .of Midwestei 11 boiTOwer js the boss. And, come
up—some bquite municipal trading and retail sales. ^.0 think of it, he hasn't been out
v':-" '
of that enviable spot for very
^

As usual, of course, the-earnings of certain companies will; be
-oft'much more than average, but

.be

•

«n

-m

levels of lastyear.;

others. ,will

the

Wednesday.

same

Light

past

113111111111 UUi

flnpOliltS K. T. mOOIt

and

are more

—

in 1958,

million

conducive to placement
of funds in fixed-term securities

which

offer

making

for some time. General conditions surrounding the market

but will be firm

some,

assorted

these,

virtually

debentures

vestment

case

tovTaCtors.'
.,
throughout
the
NO
Don't sell the U. S. A.
new
year.
Now is a pretty • good short in 1958, even though you
t Hive? tof.;':,buy
bonds, and -to moy feel like it at times,
lengthen maturities.
.;' V;
i
•

down

rein-

january

demand oppears to be
itself felt this year in a
greater degree than had been the

moderately

assured
total

among

On the

element

are

slated

return.
The

repay

prior to
Jan. 1, 1963 with moneys obtained

Commonwealth Edison.
Co.'s $50 million of
bonds and
debentures
due up for bids on
Tuesday, and West Virginia Pulp
&
Paper
Co.'s
$40 million
of

total,

al| ■OV'gt. the icountry.

New corporate bond

'is expected to

Accordingly

are

when

week

Principal

;scaie investors would like to get

(3) Business capital investment

investors

and

$150
million of
offerings will be on tap.

iri forsucb
circumstances;
higher prices and

yields.

the

notes

prior to Jan. 1, 1959, to 100% for

calendar

some

lower

issue

the

Neither the

company

outstanding
incurred

provement of
cilities.

reasonably heavy bill of fare

for

the

indicated,

: /, ;,v. 'j.;

■

new

ahead

government
is
.Specifically, we expect a, lower- ^QOn<yialf^ill;t)e considerablydetermined to expand the defense
ing of present, bank reserve ,re-.^better than tne lirst. .
.
budget measurably. quirements^alid some further re-;.
(2), Spending will continue at
Th
nflfliral
PvnpPtntion
for
of gradual credit relaxation,;

and interest rates

non-callable

were

to building steadily for the weeks 1987;

;■*

icy

years.

The

««rc»

-n

bank borrowings and to finance
construction,
extension
or
im¬

Plenty On Tap

•

^^"^ow^to-istim up quickly: 1
he
motivated by the more or less
'
general vbelief that\ the money
We expect' thp,?Federal •Reserve.,
(l.J-.,J958 wdl be an oH yeai market is destined to become
fBoard to: continue: its recent pol-,; hdt^ an.
up
year —put ine easier particularly i if, as now
••

inclusion

rent offerings but were displaying
keen interest in issues which are

the

repayment

provision in the indentures.
Connecticut Light & Power Co.'s
$30
million
of
30-year
3%s,
bankerc.
returning
to market via the nego¬
DanKers, returning brought
tiated route, also rp.et good de¬
mand at a price of 99% for a yield
found
of 8.889%. Here again the issue
Thev not only is non-refundable for
the first

Summary; ;Institutional

<cvill^ins::,,v^^:

applied

thfs ^eek

Wind

^
a

able pelTod of time.

roles,

different

Mar-

proceeds from the sale

which

*^n/holiSv^
fnvestors
Lnw ^.1'S

[with Moneys and ?Credit < which-either^ a "sinking ••;spell" or a
past

Net

And that yield was protected at
for the first five years by

the

maturity, and the debentures
priced at 100.75% to yield

the bonds and debentures will be

yield of

4.45%.

least

played such, an important role mi^btisk- tally" in the Stock
Four
economic...life during Uiis: ket for the preceding day.

the buyer

gave

are

4.20%.

$18.5 bil- to use; the best statistical tools we
[lion next year—and imports from have, afc* hand to arrive at those
[around $18 billion thiss year-to figures^,
v..
[less than $12.5 billion imJ58.
" My general recommendation to
■i' ' the owners of good quality com..../.•••.•.Money and Credit,i mon stocks is to "sit tight" and
Now, let usturn tothe financial not become too concerned when
tnd investment items and start your -morning newspaper reports
in 1957, to around

potent factor, since it fitted

into

The State of Business in

(139)

Chronicle

MORTIMER J. PALMER
y.V-tce President and

Secretary

The Commercial and

(140)

Financial Chronicle

Thursday, January 9f

}g*

BUSINESS BUZZ Y

Business

on..
A
g~M
xJL I t/\As

Behind-ihe-5cene Interpretations
from the Nation's

Capital

''
-

Five

Chairman of the important tax-

United States Senators, fall Re-

writing House Ways and Means

have
now
begun
serving their" final : months ih'
Congress.
Each is voluntarily

committee. Representative Oren
Harris is Chairman of the House

WASHINGTON, D. C.

publicans,

his

; vacating
reasons.

•

■,

seat
-'v; ' :

Thus,

■

•'

'■

J-

for
I.

«.

signed

strong

that

tions.
of

to
simple

standing

Those

j what

by parties is:
50,- Republicans

sometimes

exclusive

called

club

the

mail

are:

of his state;

governor

liam

for

also

from

record in

rivals
ator

Maine,

has

the

liberal

vote

Sen-

Congressional elections

;;

which
!

the

powerful hold.

overall

picture

Spotlight

and

J.;

William

second

Senate

i'Fulbright,1

52',

old

Theodore

Green of Rhode
Island.

agement misdeeds, that is

5" f

.1° be in the

during the
Wilbur

year.

the

Texas,

the

wells

;

number of
In

1956,

latest

data

new

the

world's

great

serves.

The

will

continue

members

hold

out

but

few

some

the

Ways

and

where

all

powerful

House

Means
tax

Committee
legislation must

orginate, is unalterably opposed

any
tax
reductions
present conditions.

under

However, Representative Mills
advised
some
colleagues
that the committee
would con¬
sider a reduction in
to

business.

sile programs
of

the

current

increase

,ie

The mis¬
re

New

York 1,

Forgotten Now?; Robin¬

Free Trade; A
Speaks; Progress
Through Competition; Double
Charge on Toll Roads, etc. —
and

Leader

Foundation for Economic Educa¬

tion, Inc., Irvington-on-Hudson,

amount

Y., 50c.

Ways

and

ticians

are

efforts

the

American

economic

been

cautious,
As

missiles

Washings
hopeful
and

omy

clared, /"Fully

sputnik^.

alert to recent
continuing slowdown, I ex¬

pect the level of business to be
high in 1958 with output larger
than in most years. Also I antic¬

shower

far

better

pessimists
isn't

shows

over

signs

than

House

were

was

the

services

have

became

ever

the

never arose

dramatically
..

The

launched
-

that

White

with

the

111

East

Alpha Kappa Psi,

—

38th Street,

Indianap¬

Ind.

Over the Counter Securities
kets—- Irwin

Hill

Co.,

Mar¬

Friend—McGraw-

327

West 41st St,

36, N. Y„ $12.50.

New York

Sparks Off My Anvil From

Thirty

Years in Advertising—James

N. Y. (cloth), $3.

Manning, Shanley Partner

Savings for Home own ers-J-

K. Lasser Tax
ica

Visuals

Fourth
N.

prices

Institute—Amej>
Corporation, 4W>
New York

Avenue,
(paper),
on"

(quantity

25c
request).

bers of the Hew York Stock Ex¬

change

...

fiscal vear, plus
in funds for the

Adams—Harper & Brothers, A9
East 33rd Street, New York 16,

partner in Manning, Shanley &
11 Commerce Street, mem¬

Available

olis 5,

Tax

Edited

of College Grad¬
for
Business