Full text of Commercial and Financial Chronicle : July 10, 1958, Vol. 188, No. 5758

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ESTABLISHED IS39

JUL U 1958
BUSINESS

ApMfj^frRAT-jQjy

Reg. U. S. Pat. Office

Volume 188

Number 5758

New York

7, N. Y., Thursday, July 10, 1958

Price 50 Cents

Copy

EDITORIAL

Canada's Postwar Growth
iSfs

;eW

The railroads
in trouble

are

See
It

trouble.

And Economic Prospects

are

New York

asking for remission, reduction

mam",

tant

at Washington have recognized that some-'
thing in the nature of a crisis is facing the car¬
agers

riers and
in

are

form

the

tions. All of

laying plans for financial assistance
of loans or endorsement of obliga¬
this is reminiscent of the early days

other

tion

their

own

in the U. S. A. than vice

pects, the subject of

already has taken place in answering charges of

claimed inherent

handicaps, and challenge all to reap
new artery of water transportation.

the benefits of this

It is hard to believe that with the

opening of shallowJuly, that it
was only four years ago on May 13,
1954, President Eisenhower signed

versa.

remarks, has been widely dis¬
the press on both sides of
the
border, particularly since the:
publication of the preliminary report
my

the

so-called

sion's"

"Gordon

the

part a result
workings of time and natural change, but
it is also in very substantial degree an outcome
of the public policies which during the past
several decades have directly or indirectly under¬
mined the position of the- railroad companies.
Theiif difficulties are real enough. As late as 1939
the railroads carried nearly 05% of all domestic
intercity freight traffic. They now have less than
half of it. Motor vehicles which had only about
9% in the earlier year, now carry double that

Commis¬

tinued

•

justifiable feeling of national pride in the results which
It is the misconception of this

have been accomplished.

proportion. Oil pipe lines, too, have come rapidly
♦From

New

talk by Mr. Clarke before

York, New York

iof the Great Lakes - St Lawrence
basin and adjacent areas, but there is

Casti*

still evidence of

Harvard Business School Club

City.

wait-and-see attitude in. some quarters.

Probably this attitude is due
v

Continued on page 28

Lewis

how this expan-

brought about in Canada a

f
Widespread preparations for the
inauguration of our navigation facil¬
ities are in progress in various ports

objective not only to show
the extent and characteristics of the
Post-War
development in Canada,

b.ut a}80 £> explain
sion has

on'the threshold of the Sea¬

era

Montreal.

It is my

Jam.. R. Clark.

Seaway

which will commence in
April of next year when the Seaway
will be opened for deep draft naviga¬
tion between the Great Lakes and

way

upcmVof Jfcis very compre¬
,

the

for

are now

phases of Canada's economic
development it must be apparent
that
only the highlights
can
be

touched

created

His constructive action

legislation which had con¬
so many years past.
We

Seaway

ered all

hensive subject. V"

which

at that time concluded the debate on

this

Bill

Corporation.

subject in December
1956.
Since this report took more
than 18 months to prepare and cov¬

of the

page

that

cussed in

The trouble with the roads is in

growth and

that this coordinated,

but separate undertakings, totalling $450 million, will
have estimated average annual expenses, etc., of less
than $26 million to be met by toll revenue. Cites growth

dissipating
Canadian
participation; and offers further evidence of growing
prosperity the fact that Canadian tourists are spending
in time with future investment

savings in annual transportation costs

be achieved, and points out

draft shipping on the St. Lawrence River in

serve

Continued

new plant-equipment construc¬
only 2.3% lower than 1957 record high; sees

that

feet and

dollar

can

Canada's Post-War Developments and Economic Pros¬

the companies can
the country as
they once did and as doubtless they would like
to do again—v/ithout special help or considera¬
tion of any kind.
on

exports remain at

e.,

controlling depth of 27 feet next April, is
Mr. Castle also
highlights of Seaway Project, shows how sub¬

stantial

strained Canadian-U. S. A. economic relations

periods when the

standing difficulty

reviews

high level and estimated

companies were in
deep trouble. It is .typical of the attitude of mind
now
prevailing throughout the country that cur¬
rent thinking is in terms of palliatives rather than
any. effort to get at the real root of the long
stand

be open at a

surveyed by Seaway's Administrator.

growth industries, and highlights of Canada's'Royal

compared to previous ones—i.

potentialities

be utilized, particularly when its entire length will

may

Commission report on economic prospects. Mr. Clarke
discerns two significant differences in this recession

of the New Deal, and bears certain resemblances
to

Extent to which the St. Lawrence Seaway's

of post World War II Canadian develop¬

ment, current economic and business trends, private and
public investment in and out of the country, more impor¬

postpone¬

of certain local taxes, -i The economic

Administrator, St. Lawrence Seaway Development
Corp., Washington, D. C.

City

Specialist in Canadian investments is concerned with
certain aspects

past. They, or some of them,

Seaway

By LEWIS G. CASTLE*

Vice-President, The Dominion Securities Corporation,

less for many years past—with!,
short intervals of better times. They are now. in
difficulties of a more serious and urgent nature,'

ment

The St. Lawrence

By JAMES R. CLARKE*

They have been

more or

than for'some years

Progress and Prospects of

♦

address

Mr.

in part to doubts concerning
.Continued

•

Castle

before Economic

Club

page 34
of Detroit,

Detroit, Mich.

of the recent outing
today[s Pictorial Section.

PICTURES IN TfflS ISSUE: Candid pictures taken during the course
of the

DEALERS

Investment Association of New York

appears

State, Municipal
and

U. S. Government,
UNDERWRITERS

State and

Municipal

Securities
telephone:

STATE

and

DISTRIBUTORS

HAnover 2-3700

COPIES OF OUR

BONDS

CHEMICAL

ARE NOW AVAILABLE
ON

THE FIRST NATIONAL CITY RANK

BANK
30 BROAD ST.,N.Y.

MEMBERS NEW

STREET, NEW YORK 5, N.Y.

•

Dl 4-1400

Net

•

Teletype: NY 1-708

Distributor

Active

Dealers,

Markets

Banks

T. I.Watson & Co.
1832

ESTABLISHED

Members
New York Stock

Stock

25 BROAD

Exchange
Exchange

STREET

NEW YORK 4, N. Y.
FIRST

£otlthu>€At COMPANY

Brokers

Stock

Exchange

YORK 5

Chase Manhattan
BANK

$250,000

CANADIAN
SECURITIES

•

PERTH AMBOY

Municipal Bonds

Guaranteeing Quebec Hydro-Electric

3%% Debentures

Commission Orders Executed On All
Canadian Exchanges

CANADIAN

DEPARTMENT

Teletype NY 1-2270
DIRECT WIRES TO

Commission

Due February

115 BROADWAY
1FW YORK

1 NORTH LA SALLE ST.

CHICAGO

Expanding
Economy
MUNICIPAL BOND

Pomdoox Securities

MONTREAL AND TORONTO

Goodbody & Co.

for California's

1, 1983

Payable in United States Dollars
Price 97.25 to yield 3.93%

Corporation
Associate Member of American Stock Exch.

MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

QUEBEC

PROVINCE OF

DALLAS

York

35 offices from coast to eoast

Maintained

and

Dealer

American

New

120 BROADWAY, NEW
Bond Dept.

THE

TCLCTYPC NY 1-22*2

CABUE: CO.URNHAM

Underwriter

Members

STOCK EXCHANGES

YORK AND AMERICAN

DEPARTMENT

BOND

REQUEST

Harris, Upham & c2

OF NEW YORK

Burnham and Company
15 BROAD

Bonds and Notes

FIELD REPORT

SECURITIES

CORN EXCHANGE

DEPARTMENT

Housing Agency

LATEST

INVESTMENT

BOND

Public

MUNICIPAL

Exchange Place, New York 5, N. Y.

Tel. WHitehall 4-8161

Tele. NY 1-702-3

DEPARTMENT

Battk of America
NATIONAL

savSINO3 ASSOCIATION

300 Montgomery

St., San Francisco,

;

Calif.

The

Brokers, Dealers only

For Banks,

A continuous forum

Over

they to be regarded,

GEORGE

geared for service

affords

Boettcher & Co.

Combustion

when

you

Try "HANSEATIC"

Broadway, New York 5

120

WOrth

Teletype NY 1-40

4-2300

BOSTON

PHILADELPHIA
Private

SAN FRANCISCO

•

Principal Cities

Wires

Almost
t

every

during
in

mi-

SCRIP

expanding sales for

Since 1917

Members

120

Stock

units

and

Exchange

BROADWAY, NEW YORK 5

genersnpuiril

strindavrt

designs providin'g ior

requirements

capacity

five

from

million

two

pounds of steam per hour and for
firing coal, oil or gas, separately

hss

American Furniture

Bassett Furniture Industries
•"*

Life Insurance Co. of Va.
Commonwealth Natural Gas

STRADER and COMPANY, Inc.
LYNCHBURG, VA.
LD 39

TWX LY 77

-5-2527—

Private

Wire

New

York

City

chemicals and waste heat and ad¬
ditional equipment for the process¬

ing of by

products

supplied.
equip¬
railroads, municipalities
-

are

never

for

ment

and the home. Individual items
too

thirds

of its business

than

passing

interest

ly, a substantial volume of heavy
component work is being designed
and

manufactured

and

contract

nuclear

for

the

long-term

program

field

this

submarine

propulsion

launched

COMPANIES

INSURANCE

has

system

company

upon

for the devel¬

opment and manufacture of

over¬

all reactor systems for every pow¬

The additional income pos¬

been

built

sibilities through the sale of
Put

and

Call

Options

are

investigation.

representative

firm

our

Chattanooga,

ntnUeufeMand
^
S si? spent in the nuclear
J irnltas of dota
have been
field,
forth

which
promise

investment

Members New York Stock

Lithium Corp. of

clear

will be glad to explain the

those

who

are

controlled

fusion)

usually

sales in
new

excess

all-time

interest

The

record.

1958 is expected to produce
still higher sates and earnings beyear

Ask for Booklet

Hoiv

Use

cause

Stock

Options

end
of

unfilled orders at the yearto a record figure

amounted

$386 million and the company
not
expect
to
encounter

company."

element.

Lithium

COTPoratioids^ales

cash" flow

earninss

and

mfpastTx'yeTrt

give an indicati0n of what

may

is ahe£ld

Put

Call

Brokers

Dealers Assn., Inc.

ISO Broadway, N. Y. 5

BArclay 7-6100

will

losses

recorded

field

ure.

but
In

time

company's

the

much

this

reduced

should
.

great

energy,

interest

.
the tifusion

has

reaction.

arc

considered onlv temncrarv

setbacks in

Erowth

fuited
based

1957,

the

steadv pattern

Lowered

from

anticmatorv

expected

000 000

earnines

hudeets

sales

Fanure

of
re-

hieh

$15

exceedingly high
lieat transfer
capacity and appears to be an
extremely
efficient
coolant
for
nuclear power reactors, particu-.

enerev

develop

*s Pu^ today. Suffice

the

affected

purchasi

AEC
both

sales

".''J

Securities Company
of i New York,
*

•

Ine.
V

Affiliate

Yamaichi Securities Co.,

Ltd.

Tokyo, Japan
Brokers

Investment

Bankers

111 Broadway, N. Y. 6 COrtlandt

7-5680

Burns Bros. & Denton
INC.
37 Wall

Street, New York 5, N. Y.

;

•

■

Underwriters—Distributors
Dealers

Canadian and Domestic

it to say that

J? ls n.ow wl<Jely used in absorp-hon air conditioning, multi-purpose greases and lubricants, metaltergy, ceramics, organic chemLstry, alkaline storage batteries,
an<^ manY other ways.

It is the

that only the surface has been
scratched.to date in the develop?f lithium.
<

Lithium Corporation itself has

alloys containing lithium. Productt°n
lithium perchlorate was
begun in March. This material,

Opportunities Unlimited
IN JAPAN
Write

for

our

Monthly Stock

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

whole.

economy as a

Nomura Securities Co., Ltd.
61 Broadway, New York 6, N. Y.
Telephone:
This

not

BOwling Green 9-0187

orders for

offer

any

solicitation for

particular securities

MESXj

*
m

?f obvious interest in the solidfueled missiles program, contains

available oxygen by volume

'^saving**

lcA's large plant at Bessemer
CHy> N c
has performed in an
_

outstanding manner. A certificate
of necessit>- in connection with
the Atomic Energy Commission
Purchase Program permits 100%
writeoff in five years, and the
56.500,000 complex will be cornPletely Paid for by February, 1960.
the

bacWog

•

detail

program

Investment Securities
insufficient

S ranidlv
afexperted
10-weekJ strike A This plant Performs equally well
XL's?6LouisParkplantredi.e with run-of-mine ore, of which
fuel orders

write

Yamaichi

Tbfaining Srf for

'of

applica¬
and is
in con¬

nection with the controlled fusion
.

company

*ears

proved

ca-

Continued

and

Quotation Services
for 44 Years

re-

maximum

owns

present

Over-the-Counter

page

National Quotation Unreal

energy1952

fig¬

segment of the

Vm^ess

duce large profits.

...

than liquid oxygen itself!

®otJ^ .sales and. earnm§s were

continue
nuclear

nuclear

receiving

(See taWe below)

adversely Ste^aii^
all likeli-

which

a»octed l957 results. ln
hood

Members

man^

wonder" "taken major steps recently to asthen
that sure Rself of full participation in
Lithium Corexpanding market. It has
poration
of stepped up its research activities,
America, and
during 1957 it increased
which is shar- metal-producing capacity by 50%.
i n g in t he Much of the growth potential is
Leonard O. Fischer
growth of all believed to be in the field of
these
indus- metals and metal derivatives, an
tries, rates serious consideration. area *n which LCA is by far the
As the largest producer of lithium largest producer in the country.
products, it stands to gain most as LCA has recently entered into a
development
continues
of
this working agreement with Brooks
lightest metal and third lightest & Perkins to develop lightweight

does

FlIFR OlHIVIIU I & tU.
^HMinTftPn
riLtK,

Call

Small

re-

of $286 mil-

Lithium has important

tions

information

current

consensus of scientists and engisuffi- neers familiar with the picture

investor

keen

but

For

cient to create

Earnings for 1957 amounted to
$2.42 per share and were derived
lion,

nu-

energy

well below expectations

from

Interested.

fluxes used to make stainless steel
honeycomb for the Hustler and
—h for «...
and
other advanced aircraft.

Space

(ineluding

turns in the future.

subject

component of the brazing

the myriad uses to which lithium

chemistry,
•

pro¬

branch offices

our

STOCKS

essential.

Exchange

America

polymer

mis¬

JAPANESE

......

NY 1-1557

Mobile, Ala.
wires

Direct

larly in the fast neutron reactors
where' rapid removal of heat is

Participation in only one of the
great growth industries of our
day—missiles, space travel, elec-

holds

substantial

per

City

New nuclear facilities

purpose.

have

worthy

York

New

goes

operated profitably.

$40.95

Partner, John H. Kaplan & Co.

tronics,

HAnover 2-0700

*?7fi

use as

Stock Exchange

19 Rector St., New York 6, N. Y.

potential applications

3 yenr

FISCHER

LEONARD

are

to the
utility industry and 15% of all
items are exported. So basic is the
character of operations that Com¬
bustion has paid dividends contin¬
uously since 1911 and has always
Of

INVESTMENT TRUSTS

amounted

period
share,

Totaling

recurnng wiiieoft totaling $276,000 taken during the year also
entered the earnings picture. An
economy program and other cor-,

also

total cash payments in the 18-year

to mention but two-

numerous

is the company's entrance into the

psid less tlisri $2

The company also furnishes

field of nuclear activity. Current¬

PENSION FUNDS

comnanv's

the

and in 15 of those years payments
exceeded that amount. Actually,-

combination, are manufacutility industry and
others. For the processing indus¬
tries, the company produces mills,
pulverizers,
air
separators
and
flash drying systems, along with
other
equipment. For pulp and
paper mills, units for recovery of

Trading Interest In

wr?tpnff

York Stock Exchange

Members American

New Orleans, La. - Birmingham, Ala.

basic dividend rate. This statement (despite the passing of this
Spring s dividend to protect the
current cash position) is based on
the fact that in the past 18 years,
J940 through 1957, the company

tured for the

(

City

(Dividend Correction)

referred

ofi

TEL. REctor 2-7815

package

thousand
Exchange

Stock

characterize
En-

make-up of Combustion

atinff

York

to come.

gineering. Complete steam

^fcpONNELL &fO.

e^oy

wUl

years

Massive operations
the

pellent, as a component of light¬
weight airframes, as an interme¬
diate in
the
high energy fuels
program, and as an oxidizer. It is

The article in the issue of June

■■

thfs indTstry

sile field include its

ten

111111?

question^that^upSiers"of^quipment

American

double

and

succeeding

the

in
.

New

Driver-Harris

decade

again
HiiHi..

New York

Astarita

Members New

.
.

of lithium in the aircraft

F. PALMER WEBER

Steiner, Rouse & Co.

within the next few years.

Partner, Morris Cohon & Co.
George

Correc¬

mg the first quarter of the year
profits were in excess of 6.5% of
sates, wjth a high of about 7.5%
reached in March. The company
hopes to raise net to 10% of sales

and

this is the security

reasons

(Dividend

Palmer

Weber, Part¬
ner, Morris Cohon & Co., New
York City. (Page 2)

Present

kilowatt

the

stability

seem

like best.

that
the public
utility indus¬
try will double
agrees

output

RIGHTS

these

(Page 2)

margins sharply during 1958. Dur-

assured as
the result of the utility expansion
scheduled by that industry. For
would

growth

hority

its

Specialists in

tion)—F.

Bought—Sold—Quoted

Partner,
Co., New

attests

record

factor

the

such

City.

rective action taken in late 1957
is expected to increase profit

stability

past

The

growth.

industry.

CHICAGO

•

Fischer,

Kaplan

and

conservative

seeking

accounts

important

company's

the

for

recommended

are

even

that

fact

the

capital expenditure prois now largely completed,
Combustion
Engineering
is

uncer¬

choose

Exchange

Stock

Driver-Harris

return in

gram

moment

when

Member

Associate
American

York

heavy

pronounced, it

1920

Established

the

tainties

Corporation

4%%

Admitted¬

America—

Corp.
H.

John

Th^,1S a11 Jhemoretrue in view
of

Par-

ticularly so at

New Yoik Hanseatic

$1.12

today's market but the investor
select for investment an industry c<m
probably look forward to
possessing assured growth, both higher dividends at a future date.
future

Louisiana Securities

Colo.

(Page 2)

is to

immediately and in the long range

Alabama &

Inc.—

Co., Colorado Springs,

Lithium

the New

ly, this is not a large

A good policy at any time

serve you

about

Stock Exchange.

York

Engineering, Inc.

return

the stock at 25

with

Colo.

dividend

current

The

ASTARITA

€.

Colorado Springs,

Nationwide Private Wire

System

Engineering,

Leonard

Large Trading Department

Ready to

are not intended to be, nor
offer to sell the securities discussed.)

as an

Week's

George C. Astarita, of Boettcher

(The articles contained in this forum
ere

Combustion

in Over-the-Counter
•

which, each week,

In the investment and advisory

experience

years

This

Forum Participants and
Their Selections

a different group of experts
field from all sections of the country
participate aid give their reasons for favoring a particular security.

Try "HANSEATIC"
•

Security I Like Best

pro¬

Sales

$1,457,000

1954

$3,178,000

Established 1913

1957

1956

1955

$6,382,000 $12,152,000 $12,240,000

0.01

cash

Cash flow per shi

•

0,19

0.30

0.22

1.03

0.56

$99,568

$339,811

$516,857

$1,122,268

$1,938,187

$1,456,146

0.41

0.62

1.34

2.31

1.74

Earns, per share
Total

1953

$2,296,000

0.12

46 Front Street
CHICAGO

New York 4,ILY.
BAN FRANOIBOO

Volume

Number 5758

188

The Commercial and Financial Chronicle

(99)

Forecasting Bond Prices
j

index

By DR. JULIAN G.BUCKLEY

Articles and News

...

Cold

Spring Harbor, L. I., N. Y.
,

Dr.

James R. eiarke_____i_______

Buckley explains why he believes it is easier to foretell ')*

investor than bond

future monetary

indicates

to successful

particularly by long-term bond
trader; offers his own prediction regarding

policy and

chart

of similar conditions.

''j

under the

...

thoughtful

other

words,

realizes the hazards of forecasting

might

well

the

rassed

Every

weather, the stock market
business

even

theless, it is
f

individual

conditions.

Never-, the

■

would»have

Wmt

still

make

The

12-year -period

1946

formula which
-will

give

Manv

...

best," these

fill

who

B,,cktey

deoends

full

are

prophets.

theorv

that

oniyaZsler to^To4asf the
nrices but also that

thp

.tight

April

Reserve

to V..

1946

;

decide

make

;«f the Year___—
r

•

■

taken

kf.

steps.4u-

for

weekly
by their,

be lending

henceforth

tive

securities

not

QUr Reporter
—■

r£nJein

ais0

quickly

rose

E. L. Bruce

.....

j.;

Pacific Uranhmi

but only after they have,
following one policy for a
period of time. In

considerable

33
Aft

48"

vt
:

Alaska Oil & Mineral

•.

Investment Recommendations
■

Cmnkon 4 V.T.C.

»#r-

■

■*

Singer,Bean

Business Activity
,

on Governments
"*;>*r

•

■

•

Capital Cities Television

____.

-■

United Western Minerals

Prospective Security Offerings
•

—

...

Securities Salesman's Corner___-_V_-::__l:_,_„__„_

Alaska Oil & Minerals

WalIace Streete.——...... 17

^ Security I Like Best—

Commonwealth OiL

the

start

the

year

The State of Trade and Industry.—

Continued on page Zo,

Washington and You

Twice Weekly

rllLrLllllLU OlUUlVO

Reentered as

25, 1942, at the post office at Ne*
York', N. Y., under the Act of March 8, 1879

Reg. U. 8.
WILLIAM

DANA

Patent

Office

COMPANY, Publishers

•»-

TELEPHONE HAnover 24300

Albany

9576

HERBERT D. SEIBERT, Editor &

Nashville:

Boston

TELETYPE NY 1-5

Chicago

Schenectady

Glen< Falls
Worcester

Pan-American

Union,

Canada,

Other
'

Thursday, July 10, 1958

Other

Every Thursday tgeneral news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news; bank clearings
state and city news, etc.).
~ '
'
Other

Offices:

Chicago 3,

111.

135

South

Salle

St.

(Telephone STate 2-0613)

.
.

Bank
$45.00

and

per

Note—On

the

year,

per

$68.00

oi,
lx

Record

(Foreign

account

•

—

Mouthy

Postage

New

extra.)

the fluctuations

York

funds.

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•

——

qqq

BaHaa

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Securities Now In Regtstratton.
'
•
•
•
.

Les Angeles

5SL

.19.

■

Chicago

Philadelphia

;
j

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•

Direct Wires to

^ »«**''' and

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Public Utility Securities..

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Other

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have

San Juaii RacIng

Perkin & Elmer

Our Reporter's Report-1
t
Z .. . *7 /

1%': / 1

December to 1%%

S ReflectInce

pegged and

Pubco P«L

Ee#nemU: —* Ahead— 31
!

^Einzig: "End of the British Credit Squeeze"

Treasury bills offered to

at tho fixed rate" of ^ of

Coming Events in the Investment Field.

xfl'trZt^-thfFed^-^

ease

been

thev 'would

HEnderson 4-8504

nusiness Man's-Bookshelf
.

In July,- 1947, the

ic
re-19f2- :Qf 7//g of
fIn„Au#u1sl the
rate
was

balance
oaianct

quirementsc -for member banks,
and their changes in margin reon

(

Teletype: JCY 1160

v
Regular Feature,
■
(Editorial)——7.—_:.w——-r;.:.'_.-',C»ver

.;.

•

Federal Reserve Banks ahriounced ■*
.th t
b

quirements Lor loans

Exchange PL, Jersey City

•

inflationary,
Reserve au- ,v. Bank and Insurance Stocks.

despite a declining government

th/m

kpe*he,

—.

As We See It

In June, the com-

bond market.

noth^g
The*

reserw
reseive

DIgby 4-4970

San Francisco

credit -policies .in

in
m

Stack Exch.
Spokane Stock Exchange
,

10ko

.-of, 10M -Cited by

.?t r [*\ • t -

April, 1946, the preferential dis- ,
advances to

federal Reserve; indicates their;

titoMW
cnanges

H',f

Wi"red May^-k^k—n—• 5.
-

their

FirKf

About Banks and Bankers.-—.—*

same

oF condition,

Members Salt Lake City

——-----

r———

six-month^period
cations Gf Current
:f°F carrying subscriptions to V;ctory : Bonds, constituted^ an-unfla-^: Mutual Funds
—

secretive about their actions.

Statement

J.RReilly&Co.,lnc.

Non-Tax Liability

Federal Statistical Users' Conference, Headed by Stuart

sZcE"again,mihe
•

Washingio.. Ahead cf the News-Carlisle Bargeron....-; 7

has

PROPERTIES

Emerson W. Axe Believes April Will Prove Low Point of the

^rZ?eZ£eb^
•

•

end of ;the

notoriously uncertain. Nevertheless,.«iven a set of conditions,

Reserve wiH take Ihe
V
a.1,

FOOD FAIR

....

...

eas^tifciXPhumS

„

EQUITY OIL
'■

STANY Obtains Favorable Ruling

lowfcrd^tight;wopoy\

money

tare

Reserve

PAPER

ABA Group Detects Business Improvement in the Second Half

» was clear that inflation was our%

period of time, bond

Pedpral

CORRUGATED

^ W* ShaPe NeW

the

bond due in September,.. ; "Give Bps- by Dealers—
sold at its peak price of
_
, Fjn}in_irifr •
to yield 2.03 %> The average ;
Mimiu^l Fluaudnr ;fai

,5f: iSdifficult tb^forccasti discontinued.

FORT WAYNE

Tr~r"":

Z71 ^ $ S ^^ ^ Needed

*.... *

go up; if they decide>counf °t
of 1% on
.. to make money tight, bond prices
thember banks secured .by,,short- --- Dealer-Broker
vyjii
oq
down
It
is
recognized.. term Government .securities/was
^
,•
;
*

yield 2.58%, The CObt of livillg.,

prices will

risen i©ver 33.%- since 1941:-and!'

■

„

•

becoming

was

The key, in a "few nu",ber 0,16
words, lies in the policies of the - To counteract this
Federal Heserve System. As many / pressure, the Federal
know, if 4he Federal Reserve au- thonties seemed to
easy over a

' "

Bttdffe<in* fw Research-N.- B. Tucker.........,,^.......,.

prices.'

thorities

"y'be'^m SZ-the chart';

mrl^h

stock

assiinncp

for^^"SmplZ tfrffol-ecaZnr

•

LITHIUM CORP.

not.;below- Commonwealth Edison Co. '

i«

Solving Strike Threats and Shortening the Recession
^Roger W.'-Babson
__J__19

yield on all long-term■ ,U. ; S.;
Treasury bonds also reached nts

•

pan! <htLri writer" w^ild'likr

and

-George S. Trimble

•

: 7

___

„

Dept.

STREET, NEW YORK

Telephone: WHitefiall 4-6551

Space Flight and Science in the'Most Advanced Industry

April,

bonds. In April the U. S. Treasury

discredited

advarrr-e ithe

Phase

Federal

extent
on
iotaition
and
guesses.,
While some have Been-1972,
right a number of I times,
woods

f«r Atomic Power-Sen, Clinton P. Anderson

restive with the artificially low
interest rates or high prices • of

help-

skillful oper-

turn

are

Iprge

War II, it became obvious that the

tools which

are

in the hands of

ator

Hon. Herbert Hoover

Shortly^te™tt!J clos! ol World >

con-

formulas

and ,!.

policy.

easy money

'First

Today's Southern Economic Picture^-L. B.

•

WALL

j*88?

ils actions about either
an

stock-market.
business

A Quick Look at Euratom and Benefits to U. S.
• '
^
Federal Reserve seemed to cluster ^ —John F. Floberg____';_;_____^._i_—
——20

have formulas

ditions.

Better Understanding of Ameriean Ideals

Desires

(June, H958)

^ 01

>^H^HP^H

hap-

pening.

present

from

up-to-date cash!

our

.......•-

might be divided into six phases.

prophecy*of
future

the

Stock Market Outlook: 1958-1962—Arthur Wiesenberger______
Towards

profit. £

substantial

find

;

: time to adjust his position and 7

e asy

solne

•

]

embar-

ample warning

still have obsoletes

you

instead of

Obsolete Securities

«'

••

investor

bond

long-term-

—

rr.blems

change but 1

this quick

;

trader

bond

seriously

The End of the 1957-58 Recession—Henry H. Clifford

)-r

timetoat-

;

the

___

phimps petr„leUm Co.-IraU.Cobleigh

reoccur-

The author divides into six

YOUR PAST
IS SHOWING

★

phases
Federal Reserve policies from 1946 to date in which he outlines step by step tight and easy money policies pursued by Fed.
'
/ '. '
'"V *

Federal Reserve poll-

cies and the likelihood of their repetition
rence

Forecasting Bond Prices—Julian G. Buckley__

long-term buy and sell signals. The k«y

foretelling is said to lie

____________Cover

: Pr0ffress and Prospects of the St. Lawrence
Seaway________Cover

yield of governments; and

average

Page

Canada's Postwar Growth and Economic Prospects

bond prices than stock prices,

PHILADELPHIA

SALT LAKE OH?

The Commercial and Financial Chronicle
4

due

DR. IRA U. COBLEIGH

Enterprise Economist

company,
-

reserves

all

the first

at
the last

stood

only

dollar

not

billion
com¬

two

pany

among

Thursday, July 10, 1958

United

States, it has
/recorded,
in
the past declade, the great¬

fields

problems

1956,

..' •>'/

both
The

Price

Industry

Index

Production

Auto

Failures

Business

eight days a month in April (it's
back to nine days for July); im¬

oil

holdings of Phil¬

rose

seasonally

June

construction

the total dollar value of new, completed
$22,066,000,000 for the first half of 1958, or a

brought

gain

$22,058,000,000 level a year earlier.
compared with $4,054,000,000 in f May but
than the June, 1957 level of $4,425,000,000, the report

slight gain from the
The
was

April 1958, 25%. pr more.

1957 and

place

The

•,
.

receded

put

nearly $4,376,000,000, a joint report of the United States Depart¬
ments of Labor and Commerce showed.
•
...

of all this, many
between April

consequence

stocks

construction

New

June

lower

noted.

figure

V ' .'.I
\i "
"•'ptW.Jl ' ' ^
'
agencies attributed the slight gain in the six-month
total mainly to expanded activity in highways and public hous¬
r

Now ';

:■.

These

the/ picture :_is
getting
brighter again with rising private ' ing., Private construction thus far in 1958 totaled $15,508,000,0Q0, •
age of 325,000 acres, 50,000 of it
(which accounts ior *■ only a slight drop from the year-ago level of $15,720,000,000. The
in Lake Maracaibo, Blocks 10 and auto usage
report commented that the decline was slight, despite a sharp
of
gasoline
sales)
and
17, and now delivering about 10,- 65%
drop in industrial construction spending. :
000
barrels a day of net crude stronger industrial oil demands.
The joint report observed that the total private construction
production. In the Middle East, ...In jight of this, more favorable
in June totaled $2,974,000,000., This was a gain from May's $2,-»
Phillips' holds a
7,700,000 ; acre %>il .climate,, a ..considerable en¬
concession in Jordan; a 25^-in¬ thusiasm has arisen for Phillips '■ 773,000,000. but a slight decrease from the $3,060,000,000 in June,;
1937. Included^ in this figure was new industrial construction put
terest in a group holding explora¬ which has already. advancpdJ'rpm

>ra

Cobleifh

key

which totaled $193,000,000 in June, compared with $204,-:
$308,000,000 a year earlier.
> . v.y-

in; place,

000,000 in May and

•

refineries.: ''

in Idaho.

Special - attention
should be
given to the Phillips position in
natural gas. * Its present known

3/15/67

through

common

$50 ;

Phillips a share. This bond is an interest¬
has done notable research and de¬ ing hedge. It would probably be
velopment in solid propellants for worth 102 as a straight debenture *
| domestic reserves rank among the
rackets, and it shares, with North and thus you are really asked to
'
very largest (equal to about 500
American Aviation, a half interest pay only $90 for a 9% year call
j M.C.F. per share); and they are in Astrodyne, Inc., specializing in on 20 shares of Phillips Pete at"
i well
located in relation to the
high energy solid fuels. As a mat¬ $50—about six points over the cur¬
| future demands of major pipe¬ ter of
fact, Phillips is one of the rent market. For those who seek
lines; and in a favorable economic most research minded of all major a
quite protected entry into Phil¬
position, since the long-term price oil
companies, and as a result lips common, this "convert" ap-'
trend for. gas is definitely upowned, at the 1957 year-end, 2,925 pears attractive, and of course it
ward.; Only the confusing legal
United
States
Patents and 628 is far sturdier collateral than the
decisions about the pricing of in¬
common, should you need to bor¬
foreign ones.
terstate gas have slowed down the
row funds.
;
The growth of Phillips and the
conversion of this enormous in¬
sustained
upward
direction of
Having
touched
upon
some
visible asset into earning power.
Gas sales rose 17%
in calendar earnings was uninterrupted from points favorable to Phillips, we
1948 through 1957. This year net ought, in fairness, to mention also
1957 alone.
Natural gas is im¬
a
possible drawback.
There's a
portant not only as a fuel but in per share is expected to recede
lot of common outstanding—34,the
petro-chemical industry in moderately from the $2.80 last
to around $2.65. 351,902 shares to be precise—and
which Phillips is becoming in¬ year—perhaps
In another defense area

credit .outstanding dropped $100,000,-/
seasonally-adjusted basis to a level of $32,957,the end of the month, the Federal Reserve Boardinstalment

Consumer

domestic

Trade

Retail

Commodity Price Index
Food

and

of price, pro-

and net

income.'-

Output

Carloadings

tion concession
permits on over a 1958 low of
hj^OTrent-:/.
this record 800,000 acres of Sahara sands in high of a round
04 *4.T^e;fsc.ocK /
has been amazing
success in the Algeria. Finally P has a 33V2% pays a current Mvidendjffif\.70
location, of crude oil—the i'oun- interest in American Independent out of reported 1957 per sham net
dation of most oil empires.
Oil Company which participates of $2.80 (wilh $2.60 more in cash in the international ^consortium flow stemming from depreciation
Since it started out with do¬
mestic production, we'll talk about developing oil in Iran; and owns, and depletion). While tnis present
i that first. In the United States it jointly with Getty
Oil, a 2,600 dividend affords a yield of only
mile concession in the 3.85% on the current quotation,
holds about 9,300,000 net acres, square
K u wait Saudi-Arabian Neutral it should be nQt<3d..that, Phillips
plus 554,000 net acres in the 49th
state, Alaska, where a recent dis- Zone wherein lies the Wafra field, has increased hj^L^ash^dividend
jcovery on the Kenai Peninsula producer of 80,000 barrels a day nine/times in 'thfeipj&st 12 years.
;
There have alscxnjrf this period,.
has started what appears to be a at the end of last year.
been a numberspf ^fferiiigs .oJ'
| major oil boom. Actual reserves
To these broad holdings of pe¬
in the U; S.; (estimated in the troleum over a wide section of rights to buy either stock, or con¬
autumn of 1956) were around 850 the earth's crust should be added vertible debentures on quite at¬
i million barrels of crude oil and
/
Phillips' ownership of \5,000,000 tractive terms.
I controlled 440 million; 12.8 trillion tons of known uranium reserves
As a matter of fact, Phillips has
cubic feet of natural gas, plus an on a 1,280-acre lease near Grants, been quite, .devoted to the con-'
additional i4.4 trillion cubic feet New Mexico, and a 1,725 ton-a- vertible debenture;- as a means of
controlled.
Actual production in day uranium processing mill at financing and of the company's
11957 was
at the daily rate of Ambrosia Lake which
recently $332.7 million. in long-term debt
132,000 barrels of crude and 87,800 went into operation. Major nu¬ now outstanding, $171.5 million'
of gas liquids, which meant that clear research is also conducted consists of
414% debentures due.
Phillips was supplying 92% of the by Phillips for the AEC at the 1987. These now sell on NYSE '•
; raw material needed for its six National Reactor Testing Station at 111 and are convertible into the

gross

Production

Electric

of Trade

State

and after the

'4-.*

overseas

A
Steel

The

percentage
in

V V

lips are not to be sneezed at. In
Venezuela they include net acre¬

integrated
in

rise

■„

gas

tario,

The

j companies

est

"V.J

Saskatchewan and On¬
especially through its re¬
in Savanna Creek and Dick

the

leading major

the

oil companies,

•

lumbia,

this fall.

but,

'counts,

major

ports were restricted to 10% be¬
Alberta, and low the 1954/6 average; and total
its reserves at Peace River, B. C., «demand lor
1957 advanced but
which will start to feed into the
1.6% against an average rise in
Westcoast Transmission pipe line the past decade of 4.8% a year.

balance sheet.

is thus

Lake

account

just above $1.8 billion on
It

serves

property

gross

its

eduction and proration arose. Texas,
which
annually
produces some
natural gas through its 2,400,000 15% of the world s oil, cut back
net acres in Alberta, British Co¬
production from 12 in January to

this planet.

over

time, and its

production bulge induced by the
Nassar nastiness in stealing Suez

current comment

some

1956 Phillips grossed over

billion for

ican

about this billion dollar
its unusual growth rate, and its extensive petroleum

Pumping out

completion

projects and slackening of drill¬
ing operations in many sectors.
The past year has not been a
wonderful one for major Amer¬

Phillips Petroleum Company

;•

(100)

000 in

May on a

000,000

staled the past week.

decline

The

was

somewhat -less

than

the drops registered

It attributed the
auto loans, which fell short
the month.
'/
.
",'./*
-'-•For all consumer items, consumers got new instalment loans'
totaling $3,252,000,000 in May, but repaid $3,352,000,000 during
the month.. In April, seasonally-adjusted new instalment credit
totaled $3,278,000*000, which was $123,000,000 below repayments.)
Although new instalment credit-in May was only $26,000,000;
under April, it was still considerably below the year-ago season¬
ally-adjusted level of $3,535,000,000. However, credit repaid in
May registered an increase of $39,000,000 from a year earlier, the
the board noted.

previous three months,

in the

May decline to a slowdown in new
car loans that were repaid during

board declared.

;

the end of the month de¬
clined by $183,000,000 from the end of April to $14,700,000,000,;
after seasonal adjustment, reflecting a decline in new auto loans;
during the month to $1,113,000,000 from $1,161,000,000 the month'
):>efore and $1,363,000,000 a year earlier. It also reflected a de¬
crease in auto credit repaid in May to $1,296,000,000 from $1,338,-'
000,000 in April and $1,305,000,000 in May, 1957.
. 1
./"? ■
At the end of May/instalment credit in force for other con¬
sumer
goods totaled $8,200,000,000, a $53,000,000 increase from
the end of April, the' report added.
Repair and modernization
loans increased $8,000,000 to a total of $1,900,000,000, while per¬
sonal loans went up $22,000;000 to $8,200,000,000.
v
;
Total seasonally-adjusted non-instalment credit outstanding
rose
$150,000,000 during the month to $10,000,000,000 at the end
of May, the board reported. This mainly reflected a $146,000,000
Automobile credit outstanding at

boost

This

credit,

the

charge accounts.
more than offset the

month

at the

$100,000,000 decline in instalment
total consumer credit in force rose $50,000,000 during
to

new

end of May,

seasonally-adjusted level of

$43,000,000,000

according to the report.

.»

Stock Values Are Up

Noyes

disturbing fact. Most

it does take quite a volume of
to some slack¬ buying (or selling) to create a
ening, in demand and price shav¬ big market swing in the issue.
year.
This is the base material ing in certain areas, will earn less; Moreover, ultimate conversion of
there is
no
question here the aforementioned debentures
for certain plastics and is used by and
about the dividend being in any would, of course, further dilute
Phillips to produce its Marlex
the equity.
(polyethylene) and, for sale in jeopardy. The last half of 1958
should be considerably better than
Assuming, however, that the v
quantity to other chemical com¬
the
first
and
Phillips
will be equity (or convertible)
capital
panies.
In Canada, too, Phillips has at¬ spending this year about $65 mil¬ requirements of the company are
now taken care of for a few years,
tained an important position in lion less on capital expenditures,

creasingly

factor.

Phillips will

produce around 200 million pounds
of ethylene from natural gas this

This is not

oil companies, due

then

rising

per

share earnings
A post¬

trend should materialize.
war

Here Is A

Special Opportunity for You:

capital

billion,

investment

„

"FOR SALE"
Beautifully Bound Set of
Commercial & Financial Chronicles, 1914-1952

Available in New York City—Write or

candidate

for

short

sale.

United Investors Formed
DENVER, Colo. — United In^
vestors, Inc. has been formed with
offices at 2334 East Third Avenue,

Phone BEctor 2-9570

Edwin L. Beck

c/o Chronicle, 25

Park Pl. N. Y. 7

to engage

Officers

securities business.
A.

Vaughn Ayers,
president; James A. Matson, vice
president; and H. E. Leidy, secre¬
tary-treasurer.
;
are

well-known

Stock

& Co., this city, has
to the public which

upturn is almost in

sight.

$13A

cost conscious manage¬
favorable outlook for ex¬
pansion of reserves of both crude1
and natural gas, and a vast existing store of natural gas to be
merchandised at higher prices in:
coming years—all these suggest
that Phillips is a quite illogical

ment,

$24.6 Billion in 1958

Exchange firm of Hemphill,
recently issued a very interesting
survey
states that stock values had upped
$24.6 billion in 1958, in spite of the fact that many corporations
have had lower sales and earnings and many have reduced or
omitted dividends. This interesting and timely survey shows that
on average, stocks rose 17.5%
in the first six months of 1958 and
increased 14% in value.
Other interesting deductions were that,
the short interest of more than 5,700,000 shares is the highest
"short" record since the first figures were compiled in 1931. To
some
market observers, recovery in active trading represents a
big vote of confidence in business outlook. For first half of 1958
volume on the N. Y. Stock Exchange rose to 297,846,276 shares
from 266,734,754 in same six months period last year with a daily
trading average of 2,363,859, according to the firm's study. There
is a growing feeling that the recession is tapering off and that
The

Government Reports

Highest Jobless Record Since 1941

Swelling of Labor Force by June Graduates
The Commerce & Labor Department announced last Tuesday
that unemployment records reached a 17-year peak in -the past
month (June) largely due to the heavy influx of high school
and college students to the labor market for temporary
and
permanent jobs. The Washington department reported, however,
that employment increased by 920,000 workers from May to 64,981,000 persons in June this year which was about 1,500,000 lower
than the June month figures last year. Unemployment increased
by 533,000 to 5,437,000 or 2,100,000 more than a year ago.
The
department hinted that the recession may be waning.
Due to

Shipments Rose During Mayactivity helped boost finished steel
shipments during May, as compared to April, according to Amer¬
ican Iron and Steel Institute. Steel mills shipped a total of 4,649,Finished Steel

Increased

construction

Continued

on page

Volume
*

Number 5758

1S3

The Commercial and Financial Chroniclk

\lvi)

the

The End of the 1957-58 Recession

Observations

Clifford

.' of
SOME STRAWS-IN-THE-SPECULATIVE-WIND

(Before
\

STOCK MARKET CREDIT.

in industrial and

In the face of continuing declines

credit lending, credit extended for the

consumer

The net debit
billion as

purchase of securities has increased to record levels.
at the end

since

of May,

these

data

attributable

Importantly

the

Defines economic

reduction

not

margin requirements from 70% to 50% at the
turn

of this year,

low

$450

the debit balances since the
have risen by about

million,,

18%. !'Related

V sion.

market value of listed issues, at 1.4% thejt now
stand at the highest proportion since the 1955

peak of 1.5%, which

parties committed to

entire postwar period.
!
However the
significance

A recession is

overall

our

of'these

data

and

least cast

tion of
;

Wilfred

market

May

from

tion.

STOCK VERSUS BOND YIELDS.

•

not

that

wether

of the

market

from

situation.

investment
1950-1957

bond yield ratio

The

170%

accompanied by

was

1.1 y
brought about

rise

the

SnuVurfl A-

which

stock

decline in stock-

trasted with the historical

norm

opment,
•

.a-

rr
h
Henry

other

hand,

■■

!y'r ■■$*"*

«H';

THE SELECTIVE EMPHASIS ON BULLISH NEWSRevers¬

'
•

also

They
rationalizing the market's upswing with favorable inter¬
pretations of "neutral" economic factors.
In the broad economic area, much is made of our prospective
future strides from a $400
billion-plus to a $600-$700 billion

late

the

immediate

effort

A
seen

specific example of the market community's colored view
in its attitude toward the

which have been

credit company stocks,

consumer

boosted to record

high prices with the stressing
of current earnings from past bookings, with a total disregard of

Continued

page

de-

avoid

"New fEra"

have

Board'=

money

dur¬

besides, any
1-

■

1—

nil

and

can

strain

year* and

^Decembe^!^

*>r the

Jufy

of June

and August .1957 before beginning
aRfPafiv

Horlino

sieaciY aecnne.
*

Its Causes

is my considered opinion that

2^^

detl£ltely ™1
®
0
eatch your breath. by various beBut then .t de¬
came accentuated

1954 affain

record!

„

to call those "recessions"—

" from

seen

best vCar

the4

record

sV?n' ^ose

actoUy

was

velopments which had a depress¬
ing e f f e c t upon - the public's
confidence—and mass psychology
converted the pause into Ja reces-

The Present Recession v

tabulation, 1957

10wmg*

The indicated

am?2g

.would/nClA^
'

long-terrif Ihtqi'est rate

1958 decline, while less than 3%,

represents

had steadily risen from 3.00% in

rather

than

pause—and is probably entitled
to be called a recessionJ It is not

the

enthusiasm

stocks
*

Federal-IteserTe
Industrial So^ction Id®

that

As '

frequently

ways.

carried

1956 vSoI

thg

figures in the: accompanying

which require

February 1956 to 3.25% in April,
3.50%

easy to pinpoint

just when it bethough" indications suggest

gan,

August

♦-

.,..

Continued oft

and. 3.80%

„

-y,

page,

for
bor-

stocks

{Gross Natl. Product

Year

Percent

(billions of S)

Decline

1948

high

fear of another depression

$257.3

—

1949

•

1950
L

"fear psychosis" largely
brought about the subsequent de- '
cline in general business, which
proved
to
be
of
rather
short !=

■

■■

•/

'_J

286.0';

391.7

—

,.,-X

287.4

(increase)

305.9

—

;

326.9

1957

ing

•

271.8

1956

from the 1932 debacle—the result¬

0~9%

255.3

0.6

1955

/ Decline.f-

227.1

363.2

V——,

»■;?

•

206.8

345.4

1953

$208.7

1954

the

(Billions of

—

'0%

328.2

1952

PercentJ

Personil Income

285.1

1951

Ration hardly recovered

tion, based upon'* 1947-4SF—100.

misunder-

any

de¬

decline in the stock market (from
a. rather
full level)
engendered

part of

peak

;ellabie

were simply "pauses" in our
economic advance

prices and was
one
of the major causes of the
Great Depression of 1929-32. In
1937, by way of comparison, the
-

ing lat|,oSob

of
the
postwar years,

of two postwar "reces-

another peak

economy over

different

ludicrously

...

press

The

of the major causes, though

rowed

envisage an early Recession
via "bottoming-out" process, such unfavorable developments as
the persistent slump of new orders with cumulative reductions in
backlogs, are being ignored.

served

sions": those of 1949 and 1953-54.

buying 'common

Exemplifying the investor's double standard is the sensational
leadership of the de-flation benefited public utility sector along
with the rise in the balance of the market so importantly ascribed
to the prospects of in-flation.

the

1920's, for example, the pub-

lie's

Gross ) National. Product
but the impapt " on the investor of
accompanying increased competition and squeeze on profit mar¬
gins from many directions are glossed over.
And

they

second-S y/r

which
our

and
time

years,

quite

iVy rvmta

enthusiasm

hn?

substantial

pressions. In both it
one

i-v

th?tv■»«

Mass Psychology plays a major
in both.. recessions and de-

wnue

been some mention

part

selecting for emphasis the favoralole external elements.

are

A!
A

correct.

substantiate downward market action, now the bullish enthusiasts

war.

serious. A depression is they

considerable

ing the longstanding proclivity of market followers, as again prac¬
ticed
last year, of stressing the pessimistic-outside factors to
are

maladjustments
veloped within
several

economy

of our economy. And

oI excesses and
Just

usually brought about by serious

r <.

its

ing tire) postwar^; years, that-: it is
quite, hazardous to single" out "just
a fewrmdustrijesyas ^belltv&tfMrs"

public during the

economic

our

very

Steel

'
ii?1 •this recession started as : simply
dcnrPstI
1949 was the
depres- second-best year we had ever ex- another "pause" in our economic
advance—vou can't run unhill inOn,the perienced.
Similarly,
1953 / was,
without

mittens

a
Clifford /
/

1957.

tta

activity, is the
normally rather lengthy, and can refuse

is continuing.
■ - ■/-

combination

sion,

DETERIORATION OF MARKET LEADERSHIP.
The good
price action in the low-priced speculative issues, which are re¬
vealed by analyses to have dominated the market during the
7/V

jusiinent^i-inTOUr

■

speato. for themselves..It

niff

cline in

half year,

"pauses,"

yet

temper, the

(as

of 1.60.

ionowing

prosperity,

toward devel-

Mr. Galbraith),/attributed
the eventual market break. Since last July the ratio rose to 1.27
at the end of December, but fell to 1.21 at the end of March? .and
to 1.13 currently — a distinctly disadvantageous relationship con¬
observers

siou

^tUsomerun-

factor ;many

turned

March, and started to'decline in
April. P. v:';■ * ••*-? u
v
On
the! other hand,- we have
witnessed ;;so many "rolling ad-

development* so
turned into a recesahead'■ with both political

pansion,

the average yield of Standard &jPoor's
50 industrial stocks related to the yield-on their high-gradd indus¬
trial bond index) from 2.92 all the way down to 0.94 last .July—

(bpsed

sua

reaction1"to

bell¬

significant

recession
•

The wide-open break, fol¬

which ratio has served

bonds;

Production... reached

be regarded too ttwse e c o n o «n l s t s have, been
•/ ; seriously. A prgved wrong by a dozen years'of

lowing persistent weaknesses, in Treasury issues, highlights the fall
to a less favorable relationship in the yield obtainable on stocks
to

earlier

other

had

: x

indicators

July 12th.

that

aware -

economic

institutional participa¬

long-term

Industrials)
on

90% in late April and early May.
Freight Carloadings began easing
off in May and June. Crude Oil

was a pause

money.

Jones

stock

moderate

normally of rather short durauoii,

qualified/they nevertheless must at
some doubt.on the curtehf 'attribu¬
great built-in investment quality to"> the

may

;

pause

cheaper

Na¬

Income

Production began the year at 98%
of capacity, and
dropped below

-d

rt*1!

the maximutn in the

was

Sees . further inflationary

well

downward

but accentuating

psychology that the

mass

Personal

(Dow

business

pressures.

this recession similarly

avers

advance

economic

our

changed

total

the

said to have

are

inflationary

phenomena of 1949 and 1953

recessions, and

December

last

which

measures

accentuated the recession and added to

the highest total registered
first compiled in 1931.

were

1957.

Gross

peak of $440.0

hit its peak of 520.77

role

upon

mass

adopting anti-recessionary

balances of customers of member firms have risen to $3

and

market

emphasis

.(barring subsequent complications. Mr. Clifford is convinced
the public would have reacted just as well if the
government
and both political parties reassured the
people nothing was
basically wrong and then let nature take its course instead of

Storm?) V

quarter, of

quarter

peak of $346.9 billion. The

psychology in his analysis of current recession, and
Jbelieves the crisis is past and the patient should recover

that

billion,

Associates, Los Angeles, Calif.

Los Angeles investment counselor places

September

During

tional Product hit

By IIENRY H. CLIFFORD

By A. WILFRED MAY
;

—i.

(1st quarter)

1958

•

434.4

422.0

—

343.4
2.9

342.5

0.3 ;

duration.

This

perhaps

a •

somewhat

superficial

comparison of reces¬
sions ahd depressions, which could
be
substantially enlarged upon;
but it should prove sufficient for

the scope of this paper.

to
a

sel.

reviewing the

economy

•

during

course

the

years

of our

maladjustments

about such
no

NORTHWEST

that

announce

bring

downturn. There was

low margins, with cor-r

the

corporate

Company, Portland, Oregon,

NATURAL

GAS

COMPANY,

changed

July

•
T
■-

The

name

was

effective

1,1958.

new

name

•"

'•>.

■'}

•/ •

descriptive of the nature of

our

'•>

busi-

which

ness,

and

the

great speculation in the stock;

market

pleasure

Gas & Coke

since

fail to find any;
serious maladjustments sufficient
to warrant a depression. Neithqi^
do we find a sufficient number of,
minor

Portland

Woskl War II, we

large

is"

Postwar Years

The

is almost solely the distribution of natural
gas/

now

expanding

area

Oregon and Washington.

our

operations

the

•

States

respondingly large brokers loans.
Farm

lands

over-valued

Call...

gaged.

not

were

and

'seriously

heavily

Consumer debt and

The

name

mort¬

home

the

change does not affect the rights and preferences of

Company's Common

Stock, $9.50

par

mortgages were not generally oh
a
fixed
basis, but were
being

steadily

Marketing Department

ferred Stock,

Merrill Lynch, Pierce, Fenner & Smith

amortized.

general

were

Corporations
a;, far

liquid position, and with far more
conservative capital structures. !

fit »

NEW YORK 5, N. Y.
-

i
^

Offices in 112 Cities

...

„■

J %

-4

■

of its Pre¬

value. NO EXCHANGE OF'

Charles H. Gueffroy, President

matter of

Met, the postwar
years seem to haVe4 been'marked
by a decided attitude of "caution."
Perhaps that was because the gov■

par

•

70 PINE STREET

value,

STOCK CERTIFICATES IS REQUIRED.

5.75% Series, $100

;

NORTHWEST NATURAL GAS COMPANY

(formerly Portland Gas & Coke Company)

(102)

principal instrument of the
is freedom; of the latter,

The

former

We Have in this Country,
By IION. NEIL McELROY*

Americans they must be

..."

materials for

Russia
'

illustrious

of. to ™°fl
Emerson.

degree

sons—

iUustrious

Ralph Waldo

sons~
•
j finally to

The •»£

and

nor

i-.-l
people point to the
launching of Sputnik as the motivating force which caused us to

QUr £jrg£ concern,

of course, is
ourselves militarily. As
Secretary of Defense, it is my. examine

to protect
,

x,._x

personai concern to see that the
rjgk 0£ bejng conquered by force
^

averte(j

met, and

understood,

arms

deterrent power.

our

ourselves
T

nar^the
•

basic
H.

Neil

some

McEiroy-

have before. I think we have some
to be grateful that Russia,
beat us to the punch in, the satel-

reason

assure

you

that

lite launchings.

"As

pres-

our

and

remark;- tary attack does
prescience—but triumphf in
the
that he probed so accurately, with
R
: '
„
the dispassion of a surgeon, to rd.

probability

able

veal

would

what
'

our;
T

great
~

mHi-' turn ■ their full attention front
our pursuit of their private affairs to

not

his

insure
'

Historical Parallels

;
The

fact

with

struggle

gi£

social.system

the

was

area

found 'in
the

future

this

country of

in mine. There is just one
difference.' Mr. Emerson worried

worry

in the abstract
never

fense! ■

as a

geonet

his

oft the
;

matter

'V.

;

V* !

meet a great public danger.
V
He believed that we might fail
to rally to the public cause except
the jobvious pressure

under
war

6ther

for survival.

and

were
twenty-

unguided

the

P«oPle : peting o if antithetical, methods of passion as in time of war,
. <;
energy' than organizing a social system. Rus- -V We have—twice in our history
Gommun-' —under the preSsure of total w£tf
rallied the strength of our na^
ist method are telling the world

tion to .defeat the challenger to
our social system but we: cannot
agam depend on the spur of war
|or one Gf those "efforts-of re-

the

gi^storms^ttot;tor ray-wtet th^- iiiieap^niorepolitical existence fit piainiy.
.,

beset the

lnarkable,vigor" 0f which we hav^
h]

capa
democratic country,'V he who wants to see; ,his system of v;rWe^ must

nations.

...

•

j j know of no- loyal

American

"remained during a government and : social ;• structure meet the new
centUry subject to a re- ^-become a^ part^ of anclenf^istory;^g0^iet system

'■

■.

"If a
concluded,

strength

/■■■'

/:V-'

»•-

-.'S...' i'

u."'

] •;

■

thoughts

'is,,

TJlis

announ

...

'•

of what I

theme

**•'

•.

<"' *

J*'

i*'*,

-i

offer to sell nor a solicitation of an offer to buy any

■"

of these Bonds;

The

the

■

well, I would like to * * *

cement is neither an

want

offer is made only by the Prospectus.

to say

today in his woi'ds. In one
of his very last lectures delivered
here in Boston in the Old South
Church
in
the
year " 1878,
he
summed

his

America's

for

"At

country

moment some
than any other

every
more

$65,000,000

with

future

of con¬

lifetime

these words:

•

one
rep¬

resents the sentiment and the fu¬
None will doubt

ture of mankind.

that

place

nations.

Having

•

;

thus expressed his

be¬

lief in the

position of America in
the eyes of the world, circa 1878
—he then asked this question—a
question as old as civilization.

•

;

(today)
America occupies
in
the
opinion
of

(this

Dated

Refunding Mortgage 4Vs% Bonds, Series K

July 1, 1058

„

Interest

payable January 1 and July 1 in New York City

Emerson wanted to know:

"Whether
shall be the
and

(the United States)
nation, the guide

new

lawgiver

all

nations,

Price 102.343% and Accrued Interest

having clearly chosen and firmly
held

the simplest and best rule of
political society."
Today — as it always has — the
world
needs a
guide and law¬
giver. The world needs to look
•

for

example

and

nation with the

rule

pattern

Copies of the Prospectus
he obtained
any State from only such of the undersigned as
may
in
may legally offer these Bonds in compliance with the securities laws of such State.

simplest and best

political society.

Explaining Democracy's Virtues
There
,

history
more

was

never

time in

nation when it

our

kind

was

BLYTH&CO., INC.

New—fresh—appealing,
the

freedom

and

MORGAN STANLEY & CO.

"" *

our

explain the
kind of democracy.

necessary

virtues of

DREXEL & CO.

GLORE, FORGAN & CO.

offers

EASTMAN DILLON, UNION SECURITIES & CO.

GOLDMAN, SACHS & CO.

human

have always stood in line to

One of

cbuntry

those

who

came

our

MERRILL LYNCH, PIERCE, FENNER & SMITH

STONE &

shores in 1831—not to stay
one
of us — but to

become

July 10, 1958.
♦Commencement address by Mr. Mc¬
Eiroy at Harvard University, Cambridge,
Mass., June 12, 1958.

LEHMAN BROTHERS

our

analyze
democracy was the French scholar,
Alexis de Tocqueville.
He came
and

KIDDER, PEABODY & CO.

buy.

hundred years ago
our
fresh brand
of

over a

HARRIMAN RIPLEY & CO.
Incorporated

dignity that peoples of the world

SECURITIES CORPORATION
WEBSTER

SMITH, BARNEY & CO.
WHITE,

ntt-rvine.

®■ in¬

,1.^4 *'•'
II-.

P • . ,
j.
^ all tifnes^to

challenge of the
in the fields of

De¬
•

frame

but he added: *
but
added:' 8ian spokesmen for the

and common,sense or tne peopie, whole
Russian-centers all the au- publican government, it would-He has a seifish= interest in-sur-'-: ••
thority of society in a single arm. probably at the end of that period .yival, of^ course—but more im- ^ :.? v

He did worry, though, and: be-* w
cause
he * could
express
his

cern

He had doubts
£

a tree

adapted; for the conduct /pf that the victory of their system is
society in times of peace,;or'for historicaUy^inevitable-and cona sudden effort of remarkable versely,.that the days of the Capivigor, than for the prolonged en-. talist system are numbered. Could

words

hundred

private citizen.

Secretary

was

far

display
any

"Democracy appears to me bet-

his

lies upon personal interest to aceomplish his ends and gives free

and

day-and'l

his

worried

fears

and

social

competing

hopes

United'
United

own
own

"The American," he wrote, "re-'. durances

ground

our common

our

o.fr
our

five years ago:

and

though

written

Seial orders-'times of danger'

emerffins

description of the
differences in our societies'ter
on

_even

traditions, and har-

political system.

•

(■._ _■/*

friend de Tocqueville
* can assure you. tnax oui pros
it
it ic
'
ent defensive: power is adequate might express lt^-it is necessary
<

ce com- Gur system and Russia's;

I don't believe I could im¬

States.
prove

beliefs,

The

Russia

bora few doubts.

never

Emerson,

firm

witnessed.
Many

;

with

.He

and

sbo£;.,

the

cherish many

understand

manifestation of this faith

yet

the

America,

ours

lihprtv

poet
of

common

for

taking

freedom and the individual,
oi the blessings
God,

jng Q£

to-

the

wants ■
wants

disappear

ours

see

for

°I the earth. Yet, we are incur- of military organization—of ecoring the risk of being defeated by nomic health—that we have ever

strength and weakness in any real..;

respect

ex-

Shp
She

live

conquered-by them,"

estimate its chances of itability of competition between

between

clash

:t say that with

"Mr.

and

J^1,.^

bold

make

and

sentiment

mankind "
mankind.

r>f

best

see

man

letters;

>
.

from the face of the earth

neither

[

tern

the

envisage

man

letters.

which

wants

and

have incurred the risk of being ly

later, Russia—perhaps without the fir-

the world to adopt her social sys-

petition for man s mind.
De Tocqueville was the flrgt to

delightful poet
.

the

presses
fntnrp
future

pro¬

claimed him

nation

one

dur-

most

J-

century

straining every nerve to

belief
.

its

over

But

hberty as we unaersiana aiia
auav such a fear ^ I believe-m a .^temocrac^ like ours
"to
analyze our brand of democracy; practice them.
1."'^;. ,";;K .'V.V
with the execution of our planned arouse the whole community from.*
as a form of government, to com.
What particularly interests me programs and the determined sun- its peaceful occupation and ruin*
pare
it with other governments about de Tocqueville is not so port of thrneople vve can for the some of the minor undertakings*
and social systems of the day. and,
mimh that- ho torpsaw iha ihev- Y
■•
K x"
*™ni
and social systems of
day,
much that he foresaw the inev- foreseeablethture forestall mili- of the people" before they will

x,.

Ninety-two years ago this month,
Harvard University
conferred a
degree of Doctor of Laws on one
of

states.

.that has brought about in this
we are today rich and pros- country the most searching and
the perous—by all odds, the most rich introspective analysis of our sysand prosperous nation on-the face tern of-government—of industry—*

displace the United States as that

war

defense emergencies.

meet
.

•

Fndpavnrc

;

Today,

consumer

we are

•

1(|K

and less for
goods. Mr. McEiroy makes clear that drastic steps
for us could mean "a more Spartan life for our people";
delineates significance to us of Soviet economic and military
performance; and suggests we liberalize trade, better our
education, and vest more powers in hands of the President to
on

the destinies of half

sway

globe."

leadership in face of continued USSR expansion of

productivity bent

portant, he has a deep, - abiding
faith in his system of government

boring despotic

prepared for greater sacrifice in the "cold war" if
maintain

populous, and
thrn the neigh-

ing that-century it would often benefit of all mankind. It is reaU '

same;
yet each of them seems
marked out by the will of Heaven

Secretary of Defense, Washington, D. C.
warns

prosperous

starting point is different and their courses are not the

Bnt Surmountable
Secretary McEiroy

richer,

servitude.

"Their

Defense

WELD & CO.

".'r,4

Number'5758

Volume 188

^The CommerciaUand Financial Chrohicle

M
>

-„v

"»*»

><y ■)«;»'

o
5

<£<

,«V.SV

•jb-x

the.: biggest-

pieces

T+

♦«:

Republicans

before
'other

are

citizens,
niore
capable
of seeing what

for the

there

a re

Such

.Join Ideal Securities

was designed by LCA'S
personnel and is a further
indication of the company's know-

,^'" in
A11

these

factors

discuss

disheartened.

them/are

tHT

the -country

the-Cbunter Market at

serve

ties

power-

Charles A.

Co.,

National

(Special to The Financial Chronicle)

DENVER, Colo.

—-

;

toward

August...

the
,

...

Eisen¬

Carlisle Bargeron

narrow-

mindea

who

MAN UFACTURERS

willing to

are

endanger the country's interest be¬
of their hate.

cause

-•The fact is that

several

ma¬

to. rely chiefly on the Democrats.
But tfiis is because in, these in¬

else

but

alley.

flon't do it because they
patriotic,

are more

cause

his

statesmanlike than
They do it be¬
by their

Corporation
LOU
"

proposed labor legislation

away.

vhte..

They won't

cation

■

labor

measures.

this

And,

strangely,

falls

Statement of

Chairman, Dana Corporation

;

•

PAOLINO GERLI

S.-Government Insured F. H. A. Mortgages

State, Municipal and

'•

••

Public Securities

Stock of Federal Reserve Bank

)

.•

•

81,1f773,366
881,730,311

•• •.

74,195,769

•

.......

207 288,517

(

4,511,700

Loans, Bills Purchased and Bankers' Acceptances

Mortgages

President,

•

29,452,840

•

1,346,429,346

......

63,630,974

......

23,039,432

......

.....

Customers' Liability for Acceptances
'

/"■"",/

25,735,401

Banking Houses and Equipment

Curtiss-Wright Corporation
JOHNSTON

•

•.

JOHN L.

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

Other Securities

■:

Chdirman and

.....

hurley

•...

Si Government Securifies

' ;

v«.r-.-■

EUGENE S. HOOPER,

President

/,.

President, Gerli & Co., Inc.

roy

.........

;';/

Clyde Estates ,->;>.

but

Condition, June 30, 1958

•/•■: RESOURCES

;
-

JOHN-GEMMkL, JR.

deaf ears.
unimportant

upon

are

YORK

NEW

R. CRANDALL

ears

GREATER

President, United.States Lines Company

his

statement I have heard so often

that

OFFICES

committee has lopped off around;
$800,000,000 from a near $4 bil¬
lion .request
and the President
and his aides have once aagin said
that the free world is endangered, /
a

JOHN M. FRANKLIN

are now fall¬
him in the matter of
foreign aid.
The House Demo¬
cratic
controlled
appropriations

deaf

1f3

Chairman/ Board of Directors

Democjcjbic friends
ing down

■...

field,

enough,

COMPANY

Head Office; 44 Wall Street, New York

X-

/'■

HORACE C. FLANIGAN

Eisenhower is being too conserva¬
tive for them, They are spenders.
j

Cash and Due from Banks

along with

■

Chairman/George- A/Fuller-Company

health and edu¬

TRUST
\y

CHARLES A. DANA

from them;, they want;

the President

Chairman, American Home Products

because here the President is get- /

ting

■■■

;

■

ALVIN G. BRUSH

to kowtow to the organized

(

President, C. R. Black, Jr. Corporation

give him support

/ They won't

;

CLINTON R. BLACK, JR.

demanded

constituents.

Chairman, The Sperry and Hutchinson
Company

Republicans.

the

S..-

•

President, Paramount Pictures Corporation

him
They

support

when he is up their

■.

EDWIN J. BEINECKE

stances he is carrying out Demo¬
cratic policies.
They can't do

anything

BARNEY BALABAN

has, had.

President

jor issues, notably in. international
affairs,; the

•

DIRECTORS

•

11,814,375

apparently it is falling upon deaf
ears in Congress.

Director, Phillips Petroleum Company

Accrued Interest and Other Resources
OSWALD L. JOHNSTON

But to

get back to my original
is

Eisenhower

not

should

BARRY

party

and

there

LEITHEAD

President, Cluett, Peabody & Co. Inc.
KENNETH

LIABILITIES

F. MacLELLAN

President, United Biscuit Company

Capital (5,039,000 shares
i
•

$ 50,390,000

$10. par)

doubt that it is demoralized. Ap¬

JOHN

proximately 30 House Republican
members, important ones, and six
Republican
senators
have
an¬

of America

publican

$3,479,602,031

Simpson Thacher & Bartlett

surprising that
get so much
support from the Democrats since
he is so often on their side, in
appointments and in policy. This
is what has demoralized the Re¬
theme., It

Surplus

MADDEN

george v. Mclaughlin

nounced their retirement. Some of

Vice

these members would have

Chairman, Emigrant Industrial Savings Bank

Profits

Undivided
*

100,000,000

.........

Reserve for Possible Loan Losses

65,781,116

216,171,116
48,440,136

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

Tunnel

hard

Chairman/Triborough Bridge and
Authority

Reserves for

time

being re-elected but the oth¬
just tired of serving in the
minority with no hope of ever
getting back in the majority.
In Washington the general ex¬
pectation is that the November

WILLIAM

ers are

HAROLD

the Repub¬
corporal's guard, not
only in the House and Senate but
among the governors.
A majority of our voting citi¬
to

New York

elections will reduce

licans

HENRY

Dividend

RICHARD

City

Power

HAROLD

28,301,485

Payable July 15, 1958

2,519,500

Outstanding Acceptances

Liability

SARGENT

Other

Endorser

Acceptances and Foreign Bills..

Liabilities

31,810,012

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

;

Company, Inc.
V.

Deposits

SMITH

...

....

zens

think

this, will

Chairman, The Home Insurance Company

very

one

eras this country has
experienced, the New- Deal
not to the contrary.
Not to harp

him too much but Walter Reu-

ther will be

one

of the chief

ar¬

chitects of policy, along with Dr.
Sehlessinger, Robert Nathan and
the

rest

Democratic

the

Americans

Action.

for

HENRY
-

$3,479,602,031

VON

BOMEL

Director, Chrysler Corporation

most radical

A. VAN

of the

ever

but, assuming the
expectations
hold

Washington
good, we are in for

1,654,998

3,085,092,424

......

healthy thing

65,612,360

„

President, American & Foreign

Taxes, Unearned Discount, Interest, etc.

RABE

Chairman, Trust Committee

Applicable to

such future loan losses .as may develop.

cover

None

are

at present known.

ELM

Honorary Chairman
United
GEORGE G. WALKER
secure

President, Electric Bond and Share Company

States

Government

and

Other

Securities carried

public funds and trust deposits and far other purposes

tin and Jack W. Vanderpool have
joined the staff of Columbine
of Securities Corp., 621 Seventeenths
Street.

end

Earl B. Mar¬

*>«<

* ••"

Bank

Two With Columbine

price of.

In November they be listed on the American Stock

going to get it.

are

approximately 24, is expected to

are

expect the worst and apparently Exchange

-• ■

throughout

ers

Colo/—

DENVER,

Flinn and Bryce Morris have be¬
come
to—c affiliated with Ideal Securi—

itg chogen fieM

(Special to The Financial Chronicle)

Republicanism" ful role in this growth industry Building,

The fact is that Republican work-

-promptly denounced and smeared,

haters

from Quebec Lithium Corporation,

naitr^

matters .which means a giving in to the > among
growth industries. The
Ouiv enemy/a bending in its direction. stock, now traded in the Over-

hardy Republicans

more.

any

Senator Bill Jenner of Indiana,

hower

vvrViat

about "modern

into an-;

these

But

raised

dared

in the next breath he talks strengthen LCA's already

heM-be^t

spree.

this.

who

country, while
among the ReP' U b 1 lean's

t7or«i^r

wv.o^?

/eastern internationalist press sees
to

that if the peQ-.

they

never

are

better

is best

mlf

these

Democrats

Democratic

do, the impli¬
cation
being
that

civilization, that the last two to pep up Republican workers and
Administrations
got to .assure them he is one of them.

than the

Repub-

...

of I*- It seems to

Pre sident

4952—had they; elected

•

partnership in Gorges &lCo'./ 15, Broad, Street,. New York!
City/ members of the- New York. '

Stock
Exchange, effective Julsr.
£: Mean,* President/But they, didn't
3rd. As of. the same date Arthur
r^dbj this: ;. Instead/ they. elected ; a
t <
^ man .who, only a few. months after
' Rlf tmaster, Jr., a limited partner,
:taking ;/office was thinking of pacity, or with ore concentrates, became a general partner.
launchinga party of':his own. Which. LCiL currently purchases,

By CARLISLE BARGERON

♦kA^wStoit

been, admitted jto

■■

;y/

-:v

•;JpfUbliejafe#had a; great opportunity
:^tolfeMst6i*e the" country's sanity ).
^/^en/thby came into power/in

?.-y
•£.»

rj't

sjk*
j

lot

S;£supj^ethere is ™usec>jyCantinuedfmm , page
lng^ovei^spilled. milk, but the Rei
j
^

f'%" >*' i-1-

(103)

$116,580,621
as

required

Member Federal Deposit Insurance Corporation

are

pledged

permitted by law.

•

The Commercial and Financial Chronicle

v104)

some

the

And

Dealer-Broker, Investment

Internationally known business leader opines USSR's abysmal
failures

send interested parties

the following literature:

Atomic

Letter

rocket fuel

No.

uses

ment Mutual

including chart of atomic energy and
of various atomic metals—Atomic Develop¬

View

Monthly

—

investment letter

Burnham and
Also avail¬

pany

ica

114 Old Broad

—

Review

—

Co., Ltd., 61 Broadway, New York 6, N. Y.
Japanese Stocks — Current information — Yamaichi Securities
Company of New York,

Ill Broadway, New York 7,

Inc.,

New York.
Latest Field

Report—Harris, Upham & Co., 120 Broadway, New
York 5, N. Y.
Meat Packing Industry—With particular reference to Swift &
Company, Armour & Company, Wilson & Co., Inc., Cudahy
Packing Company and John Morrell

Company

—

Paine,

Webber, Jackson & Curtis, 25 Broad Street, New York 4, N.Y.
first half of 1958—The First

New York City Banks—Results for

California
Eric Johnston

vestment

market

and

performance

National Quotation Bureau,

over

19-year

period

to
—

Inc., 46 Front Street, New York

Industry — Study
Broadway, New York 5,-N, Y.

Harris, Upham & Co., 120
Also available-is a report on

checks per year; some comparative figures on

the

•

& Co., 120

them

Markefc^Mid' Year

ifc

the NATO alii■

doubt

that

the

Soviet Union has somewhat laised
the standard of
living of its

....

cracked down on the intellectuals

sults

Also available is a
tabulation of operating re¬

17 Wall Street, New York 5, N. Y.

memorandum
as

Frito Co. and

of Jun 30, 1958

Basco Oil & Gas Co.

Limited,

for New York City Bank Stocks.

Hastings

West

821

Vancouver

Street,

bulletin

C.,

developments in the

Highland Valley Area.

Wall Street, New
randum

York 5, N. Y. Also available is a memor-

Republic Steel Corp.

Co., 209 South La Salle Street, Chicago 4, 111.

40 Wall

Hogle & Co.,

Firstamerica

Corporation—Report—Thomson & McKinnon, 11

Wall Street, New York 5, N. Y.
Hanover Bank of New

120

York—Bulletin—Laird, Bissell & Meeds,

Broadway, New York 5, N. Y.

York

Co., 29 Broadway, New York 6, N. Y.
Bonding and Insurance

Molybdenum Corporation of America

—

Analysis

—

Analysis

—

Parrish &

123 South Broad

—

Memorandum

—

Goodbody &

Cp., 115

Hess, Moyer & Co.,

Street, Philadelphia 9, Pa.

Ralston Purina

Robbins

Sold

Members New York Security Dealers Association

Trinity Place, New York 6, N. Y.

conironted

now

highly independent and extremely
outspoken critic of his policy.
Tito, uncowed, registered one of
the most telling and reverberating
denunciations of Soviet deceit in

here^m large
farsjghted support

0f an independent Yugoslavia by
the United States. This support of
communjst nation was both a

difficult and controversial under-

.££„g^ count^.

It sueagainst considerable public
misunderstanding. And
succeeded, in my judgment, because of the firm and farsighted

(|0ubt and

and

President

Eisenhower

Secretary Dulles.

Neutral Nations

:"Khrushchev's third objective—
to win. the support of the

nations—has

"In

also

weather,"
the

areas,

its

some

economic

neutral

into

run

very

Johnston said.
principal target

Kremlin's effort
to
and
subvert
through
is

means

meeting in¬
And if our

resistance.

foreign '■ development

own

pro¬

and concept
and resources, this resistance will
surely increase.
grows

"The

sian's

scope

chief weapon in the Rus^
massive program of

recent

rocketry

intentions

that their

was

altogether peace¬

were

ful, that they simply wanted to
help other, nations as friend
friend, that they had no strings
their

attached

lhat

were

the

they

benevolence^

interested only in

growth and independence
countries.

"For

Soviet
Russia
making progress in

time,

seemed

to be

deluding free

neutral nations

to¬

ward the communist camp. But

succeeded

never

the

point

it
of

Continued

page

Co.—Memorandum—Doyle, O'Connor & Co., 135
Street, Chicago 3, 111.

— Memorandum — Fulton
Reid & Co.,
Building, Cleveland 14, Ohio.
Soss Manufacturing Co.—Memorandum—Wm. C. Roney & Co.,
Buhl Building, Detroit 26, Mich.

Myers Inc.

Union Commerce

Southern Nevada Power Co.

—

Memorandum

—

The Milwaukee

Company, 207 East Michigan Street, Milwaukee 2, Wis.
Corporation—Analysis of the new stock—Sutro
Bros & Co., 120 Broadway, New York 5, N. Y. Also available

in the

Teletype NY 1-376-377-378

same

investment letter is

Brothers

LOOKING: LEADS?
■■

over

financial

Dunhitl
their

quarter of

century

firms have looked
International

mailing

list

List

the

Co.

for

requirements.

analysis of Bendix Avia¬
FREE:

tion Corp.

Warren

HAnover 2-2400

Tires-

t?u]

;

South La Salle

Troster, Singer & Co.
74

chev

through

*•£

—

Transamerica

com-

blandishments, Khrush-

Analysis — du Pont, Homsey &
Company, 31 Mjlk Street, Boston 9, Mass. Also in the same
circular is an analysis of White Motor.

Quaker City Life Insurance

Pabst Brewing Co.

the

fatal threat to

the recipient

Co., 40 Wall Street, New York 5, N. Y.

Pullman, Inc.—Memorandum—Woodcock,

Kennedy & Gok-

—

Company

Street, New York 5, N. Y.

Broadway, New York 6, N. Y.

Gustin-Bacon Mfg.....

within
as a

heel

? Ji

economic

Aircraft—Report—Bache & Co., 36 Wall Street, New

5, N. Y.

Pacific Clay Products

Bought

Tito

T6S

gram

Street, New York 5, N. Y.

Blair & Co. Incorporated, 20 Broad

Lithium Corp.

was

highest Priorities

."But instead of bringing Marshal
.

creasing

Electro Instruments Incorporation—Analysis—J. A.

Massachusetts

* V

munist system
Soviet control.

penetrate

America—Memorandum—Cruttenden, Podesta

s|s

•

dissidence

any

heavy

Borg Warner Corp.—Memorandum—R. W. Pressprich & Co., 48

Survey—Halsey, Stuart

Current trading favorites

also This a total
been
one

dismal faiiure.

0f Khrushchev's

;

Ltd.—Analysis—C. M. Oliver & Company

Also available is

.Canada.

Kellogg Co.

to"&KremTin

ceeded

Khrushchev

ago,

year

Marquette Cement Manufacturing Co.—Analysis—Joseph Faroll

D. S.

Yugoslavia's

pa)d due to

bloc.

—

program

woo

back

within the communist

?s living

"But,

Co.—Memorandum—Kidder, Peabody

financial institutions

second

and

"The fh'st program was to raise Khrushchev failed
the standard of thinking as well

Soviet-style good cheer and good
will with the flabby handshake to
'

...

people.

Lockheed

For

where

Living Standards

spread

of the free world to

tour

—Filer, Schmidt

& Co. Inc., 123 South La Salle
Street, Chicago 90, 111.
Variety Chains—Study with particular reference to J. J. New¬
berry—E. F. Hutton & Company, 61 Broadway, New York 6,
N. Y. Also available is a report on Northern Pacific.

Arkansas Missouri Power

Khrushchev
and Bulganin set out on a circus

railroads, etc.

Broadway, New York 5, N. Y.

Tax Exempt Bond

ago,

years

Controls Co.
use

knows

one

—because the Soviet dictator fears

"There

"Two

Industry—Study—Hayden, Stone & Co., 25 Broad Street;

New York 5, N. Y.
Stock Options — Booklet on-how to1

win

vision

—

premier" Tit(T
and

"In
:four of these programs,
Uie Kremlin has failed and its
failure is now evident to the free
world," Mr. Johnston observed.

Mr. Johnston continued:

rh?n

'^k

United States and the West.

& Co.-,

and Stock Averages — Tabulation
Amott,
Incorporated} 150 Broadway,-New York 38, N. Y.
Role of the Business Airplane—In July issue of "The
Exchange"
—The Exchange, 11 Wall - Street-, New York 5, N. Y.-^-10c
($1 per year). Also in the same issue is an article on Odd Lot
Volume Leaders; 10 Three-Stock Portfolios to give 12 dividend

Union,

Soviet

Yugoslavia

W To break up the NATO am
a™e'
■>.

past

the

resistance

and

firmness

Baker & Co.

Steel

And

"Khrushchev's

wi^Uie support of neit-

(4fT

Soviet Russia has embarked
on
policies of conquest
which have crashed against the

Review with suggested lists of selected securities.

Bond

the

tually under house arrest in Mos>Cow.

-to

standards

Fact

decade,

Public Utility Common Stocks—Comparative tabulation—G. A.
Saxton & Co., Inc., 52 Wall'Street-, New York 5, N. Y.
Estate

ifastThvoye^rsorth°doxy—has

within

twice

that

said

American Water Works Co. and the current issue of Market

Real

"Today,

Malenkov is except the Kremlin,

tral nations in Asia, Africa and

of»n

300 delegates
at the Santa Barbara Biltmore he

—
•

dox communist fold.

before

Speaking

4, N. Y.
Petrochemical

his

resolved

Bankers Asso¬
»iarinn
ciation nr America.
of America

iailure.

yield

To
bring
Yugoslavia's
Premier Tito back into the ortho-

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

deviationism is permitted only

(2)

I n-

Group,

destroy the free worlds alliance.
That ended in costly and
de

Averages, both

the

by cutting off their heads.

and

raise the
the Russian people.
'(1)

parison between the listed industrial stocks used in the Dowin the National Quotation Bureau

tfme, Red; China
intelligentsia.
Mao Tze Tung had earlier spoken
glowingly of 'letting a thousand
flowers bloom' — of permitting a
wider diversity of opinion among

...

lasting tribute this is to.

continuity

uoh'?cy^duriu

30,

China tued by fo ce

used

from

Stalin's

problem of 'the thousand flowers'

Mhc
pohcj during the past two.yeais,

ad¬

Boston

Corporation, 15 Broad Street, New York 5, N. Y.
Over-the-Counter Index—Folder showing an up-to-date com¬

given

same

the intellectuals.

Mr. Johnston declared there were

1958, before

Samuel Montague & Co., Ltd.,

Street, London, E. C. 2, England.
Earnings — Analysis — Nomura Securities

the

Japanese Corporate

disciplines

;."At the

Secretary of State Dulles!"

Pic¬

Associa¬

dress June

—Draper Dobie & Company Ltd., 25 Adelaide Street, West,
Foreign Exchanges

soundness oi
American foreign policy as carlied out today under the direction
of President Eisenhower and

tion of Amer¬

Victory Building, Toronto 1, Ont., Canada. •
Copper—Chart of U. S. and London copper prices 1953 to 1958
;

the

Eric

Motion
ture

Trends—Analysis—E. M. Saunders Limited,

the West.

"What

ohnston,
President,

freedom

ance of

Hammill & Co., 14

Street, New York 5, N. Y. Also available is a report on
Tidewater Oil, Mission Development, Food Mart and Weyer¬

Toronto, Ont., Canada.

cover

future

said

Wall

haeuser Timber.

formulate

Inc., 2 Rector Street, New York 6, N. Y.

Canadian Market

foreign policy in
years has been such

plans
and
programs,"

Development Department, American & Foreign Power Com¬
Business and Securities—Review—Shearson,

Latin America—Information—Area

Opportunities in

tactics and

earlier

Company, 15 Broad Street, New York 5, N. Y.
able is current Foreign Letter.
Business

Soviet

"The

W., Washington

—

adopt." Mr. Johnston recommends

had

the advance of Soviet Khrushchev himself,
the last two
penetration and subversion.
"jn recent weeks, former Prean abysmal failure that the Krem"This has been a failure, too..mjer Bulganin has been further
lin hierarchy is now engaged m a Again, as in the case of Korea, degraded in the Soviet hierarchy,
massive
rethe
Kremlin
program
cracked Molotov'$ ambassadorial duties
consideration
against the firmness and resist- have ended and he is now vir-

7, D. C.
Burnham

portends

years
new

objective of global freedom; and pays high tribute to
this Administration's foreign policies.

Halle & Stieglitz, 52 Wall Street,

Fund, 1033 Thirtieth Street, N.

in past two

the West "no matter what

dynamic independent policies that are not merely responses
Moscow world conquest goals so that we do not neglect our

own
—

major counts

harsh

cracked down

new

Afr Transport — Analysis
V New York 5, N. Y.

it may

means

will be pleased

It it understood that the firms mentioned

four

Kremlin drive

measure

day.
,

Recommendations & Literature
•

Urges We Shape New Policies

Thursday, July 10, 1958

whom

Eric Johnston Notes Soviet Failures

Co.—Analysis—Reynolds & Co., 120 Broad¬

New York 5, N. Y. Also available are reports on the
Cigarette Industry and W. T. Grant Company.
Yuba Consolidated Industries, Inc. — Analysis — Leason & Co.
way,

Incorporated, 39 South La Salle Street, Chicago 3, 111.

Mailing List Catalog

dunhill

Request

INTERNATIONAL LIST CO.,

INC.

NEW YORK 16: 444 Fourth Ave. IV!U 6-3700
CHICAGO 5:55 E.

Washington St DE 2-0580

Volume

Number 5758

188

The Commercial and Financial Chronicle

(105)

from

End of the British Credit

the higher interest rate on
Treasury Bills resulting from the
high Bank rate, the funding op¬

Squeeze

erations

By PAUL EINZIG

undertaken

order

With Bache & Co.

action

relax

the

credit

Dr.

Einzig with such material for thought
encourage increased wage demands and for
inflation without business

writer: finds that this

worlds.

step

The

removes

while result in

well

matism in the form of

known economic

LONDON,

Eng.

It had been
time that the

lax

squeeze, fol-

lowing

the

re¬

ties

7 to 5%.

and

July 3:
peo-V.
pie by com-'
plete surprise.

scarcity of labor.
such increase in pur-

there

t*aul

k*•$;

■

after

the

these
a

■...

...

the

did

measures

reduction

rate and after

Bank

major tax conces¬

sion to encourage capital expendi¬

ture, they clearly indicated

fun¬

damental

change in the official
policy. Until recently the Govern¬
ment held the view that

still

was

now

the

has

and

inflation

danger.

graver

abandoned

inflation

But

resistance
turned

;the

weapons of the official monetary
policy against deflation. To justify
this change, recent official state¬

claimed

ments

that

inflation

had

been

brought to a halt. In view
the" continued rise in wages

such statements indicate
dose of wishful

the

has

clusion that

inflationary

the

The

had

been

would be a
sharp increase

Resistance

unemployment.

'inflation has not been abandoned

decision

altogether.

been

about

taken

the

capital

has

credit squeeze.

since

Government

that

credit

and

the

that

that
ment

pro¬

they were reduced in

Opposition

act

pressure

the

that

Govern¬

sense

that

restrictions

icy

the

prevailing
liable

worlds.

rising trend of wages

will

ment's

not

accom¬

corresponding degree

business revival.

gesture

utmost

accentuated,

become

inflation

panied by

change of pol¬

present stage and in
circumstances Britain
get the worst of both

The

likely

but

The

Govern-

provide the
to
trade

will

encouragement

unions to press forward
demands.

now

ions

and

not

with their

likely to

ernment

their

portunity

they

which

have

just

missed.

other hand, commonprevailed at last con¬
cerning the Government's future
monetary technique. Mr. Amory
On

the

has

has announced that the method of

fixing

credit

would

en¬

mean

profit margins.

Indus¬
trial firms have lost their previous
assurance that they would always
be able to add to their prices any

the

If in such

they concede wage

prospects

of higher

Pine

Street,

New York

„

Statement

Condition, June 30^1958

;

:■;> 'V:

ASSETS

•

;

Cash and Due from Banks

U. S. Government

Obligations

Customers'

1,881,410,380 r

rv:-

Acceptance Liability

Other Assets

never

486,435,411
159,107,549

••

3,588,362,258

......

$1,952,817,255

...«.«

.......

Banking Houses

State, Municipal and Other Securities
..

57,742,797

207,257,685
69,283,652

$8,402,416,987

resumed

future occasions when

becomes

authorities would
ferent method.

the

necessary

resort to

dif¬

LIABILITIES

The Bank of Eng¬

land will be authorized to call in
the banks "special deposits,"

from
as

result of which

of their credit

proportion

resources

would be¬

Deposits

Foreign Funds Borrowed V-.-.

$7,438,170,443
5,278,715

.....

Reserve for Taxes

neutralized.

come

war-time

this is

system

revival of

of Treasury

Deposits, and the only substantial
difference

mopping

that

this

time

the

of funds will be done

by the Bank of England instead of
the

Treasury. Some such change
of policy has long been overdue,
but it

prevented until

was

now by
developed ideological
dogmatism that prevails in Britain
politics and public administration.

the

52,026,603

The

tician

Less: In

Portfolio

20,737,383

Other Liabilities
Reserve for

Contingencies

212,520,002
56,841,351

17,935,050

Capital Funds:
Capital Stock

$163,625,000

(13,090,000 Shares—$12.50 Par)

350,000,000

Surplus
Undivided Profits

.......

106,019,823

619,644,823

Conservative poli¬

average

banker

$233,257,385

Acceptances Outstanding

highly

financial writer

$8,402,416,987

in Britain considers the American

device

changing

the

increases in their costs.

OFFICE:

maximum limit to bank

phere

may

HEAD

Loans

Reserves

sense

1799'

Mortgages

Praises New Use of Bank

run

demands

f -/ Mi;

BANK

de¬

wage

with the op-

once

quirements

circumstances

•

Chase Manhattan

following the next inflationary boom to provide the Gov¬

industries, however, to
forward with their capital
development schemes. For amidst
the
prevailing economic atmos¬
wages

unions

squeeze

courage

narrower

THE

remove

of inducing the un-

way

moderate

the

instead

money

reserve

Socialism.

During

British

taxpayer

hundreds

many

pounds

charges

which

arisen

had

been

other

the

would

Bank

credit

sheer
years

had to
millions

additional

entirely
as

recent

Of the above

not

rate

and

trust

pay

of
Member Federal

Deposit Insurance Corporation

have

method

some

neutralizing

resources.

$850,777,043

are pledged to secure public deposits and for
and certain other deposits are preferred as provided
by law. Securities with a book value of $38,094,477 are loaned to customers
against collateral. Assets are shown at book values less any reserves.
assets

other purposes,

interest

supplemented

method

cessive

re¬

trying

market

with the aid of Bank rate

ex¬

Apart

H»li -'
ft.

the

resume

■

$■;

It will take another credit

mands.

press

higher

E.
connected with

Securities

Corpo¬
ration, 150 East Broad Street.

;

unconditionally there is,.

In substance

result of the

now

restrictions have been

credit

removed

the

Inflation Without Prosperity
As

Young is

Commonwealth

the

future.

near

expansionist policy, provided that
the unions accept some form <?U
limitation to wage increases. Now

restraint

investment

will induce

end

COLUMBUS, •Ohio—Robert

the

Church; Street.

should

trade

prepared

was

and that

September last. But it seems prob¬
able

added

-i i

September

could

informed

have

yet

nationalized industries to the level
from which

been

WORLD-WIDE BANKING

the

existence of

restoration

the

of the Government and of

grams

uas

btoKes nas oeen added to me
of Reynolds & Co., 221 South

the

was

possesion

time

Smith,

(Special to The Financial Chronicle)

e+0ues

bargaining

Government's

any

With Commonwealth Sees.

CHARLOTTE, N. C.— William

rtt

bring trade

only

which

counter

con¬

pressure

smaller evil than
in

many

result

come

reinforcement of the

with.. Merrill

Fenner

First National Tower.

(Special to THie Financial Chronicle)

unions and organized labor to their
senses.

have

must

given
the
Chancellor
steepness-j night, as a
which

Reynolds Adds to Staff

With Merrill Lvnch
Willi
i_,y lll.ll

affiliated

now

Government

has given up hope to

over¬

thinking, however.

recession

autumn

•

But

Beyond doubt, the possibility of

Bargaining Weapon

Unfortunately

erably the regulations of capital
issues control.
as

AKRON, Ohio—James L. Shirk
is

Broad

Loss

kinzig

altogether.
At
time, he relaxed consid¬

Coming

Securi¬

Lynch, Pierce,

•CHARTERED
Dr.

same

Northwest

118

experience inflation without trade

bank

advances,
the

Joins Merrill Lynch

revival.

removed the limit

Corp.,

maximum

the

formerly

(Special to The Financial Chronicle)

likely to be a long time
during which Britain might

lag

merely raising
limit

was

Co.

C.—

en¬

capital expenditure.

courage

Co., Inc.,

become

has

•'

would

demand and

consumer

took most

Instead

PINES,

Gaither

chasing1 .power,
in
addition to
higher
wages,
would
stimulate

ertheless, the; :4';
statement he***
made

with Bache &

renewed

Gradually

Nev¬

associated

overtime pay

mean

Street.

BOSTON, Itate.
Alice T.
running considerably under
O'Loughlin has joined the? staff
maximum capacity, it would be
of Merrill Lynch, Pierce, Fenner
possible to produce more without
& Smith, 18 Milk Street.
adding to capital equipment. But
it would

duction of the
"Bank rate from

change. Mr. Walton

connected with Cherokee

gradual

become

•'

now

credit

has

with Wm. J. Mericka &

SOUTHERN

costs and the uncertainty of higher

prices is liable to discourage them
from expanding their production.
It is true, since the output is

the

Walton

Cecil J.

Union Commerce Building, mem¬
bers of the Midwest Stock Ex¬

Joins Cherokee Sees.

HICKORY, N.- C.—Thomas M.
Whitener, Jr., has become affili¬
ated with Joe K. Matheson, 256
Third Avenue, Northwest.

of the Bank rate.

—

some

" r

William
(Special to The Financial Chronicle)

Exchequer, Mr.
Heathcoat Amory, would soon re¬

for

with

Co., Johnston Building.
formerly with Reynolds

—

(Special to The Financial Ohronicle)

Chancellor of the

expected

•

Af\
c

With Joe Matheson

England will employ the American technique of bank
deposit reserve requirements to supplement the traditional
use

affiliated

now

CLEVELAND, Ohio

Co.

effective method of

was

unnecessar¬

ily high interest rates.

Bank of

•

Private

debtors, too, had to
the price for ideological dog¬

pay

economy

inducing unions to moderate their demands. He praises, however, the accompanying announcement that in the future the

Bache

sues.

revival—leaving the British

the worst of both

with

that this will

Wheless

Bills have raised the cost of longand medium-term Government is¬

furnishes

squeeze

(Special to The Financial Chronicle)

CHARLOTTE, N. C.—James A.

keep down the volume of Treasury

British

Recent

Now- With Wm. J. Mericka

(Special to The Financial Chronicle)

ioo

OFFICES

GREATER NEW

YORK

—

OVERSEAS

\ ;

Financial Chronicle

The Commercial and

Thursday, July 10, 1958

(106)

1958-1962

Slock Market Outlook:

The

WIESENBERGER*
& Company

By ARTHUR

The

Senior Tartner, Arthur Wiesenberger
New York City

some

■

Big Difference

point is that there is always
new thing that confuses

big,

of any new
economic situation.
The great different new thing in

sign of

authority views without discouragement no

the 1920's was the effect here

the grounds that what we are

significant business revival on

readjustment preceding
major rise in business and the market. Unless the market
declines in next few weeks, Mr. Wiesenberger sees advance
setting in until the fall and, if the relationships continue,
with the ultimate top occurring abound February, 1962. For
the long-run, especially with cold war's demise, he anticipates
stratospheric growth ahead.

and

throughout the world of our cen¬
tral banking system, which per¬
mitted—in fact, aided and abetted

experiencing is but a temporary

now

based upon
solid
business improvement and
resultant earnings and dividend

most observers and belies the look

Finance

sky-reaching
that eventually

—the erection of the

credit-structure

toppled into the morass of 1932.

couple

months, the dends are always late in reflecting thousand years is the U. S. Wel¬
switched from their decline. We think they will fare State and all it signifies for
a
bearish one to
a
thoroughly move, lower .over the months society, government and finance.
bullish one.
We have witnessed ahead, but this should not be conmonetary situation

United

the

strued

States

his¬

Temporary

interest

rates

every

better

generation

the

conditions

months of

summer

the

had

re¬

of 1922-23 as the first
phase; then the business improve¬
ment and second phase of 1924covery

declined,

recently,

of, true improve¬

until

time next fall or

stocks

but

they simply
striving to go

ment

1929

some

winter, but before 1959 has pro¬
gressed very far we should have
tangible evidence of distinct im¬
provement in business. ;

highs following each de¬
the boom of 1928and the dizzy heights and

Growth Ahead

new

cline.

show

can

much in the way

—

and filled,

believe that business

then came the year 1927,
business
and earnings

when

It is difficult

into the fall.

vance

around

fashionable to look
at the excess capacity in

almost

every

I know it is

Came

subsequent crash. Many were the
bears
of
1928,
and
thqy were

steel,

field—in

motors, in copper,, aluminum and

paper and say with
resignation,
of the previous generation
and eventually right as could be, but
"Well, we will have to wait until
right usually succeeds but, in the their experience was a painful, demand catches up with supply."
along that we are experiencing process, gradually commits eco¬ costly one for many months.
Frankly, 1 think that is nonsense.
suicide,
after
which
its
This bull market is already the
a
temporary period of readjust¬ nomic
It is normal to have excess ca¬
ment prior to resumption of the creations are buried, only to be tallest and longest on record, but
pacity—abnormal to have demand
major rise in business and the resurrected in better form by the it shows no signs of having ended. exceed
supply.
Actually,
busi¬
'.,1 -.v.4' We date the beginning of this
market,
rather
than anything next generation.
nesses and industries operate far
market as of April 28, 1942. The
The railroads that were pushed
truly serious; nothing has occurred
more
efficiently at 85% or. 90%
to
change that
point of view. westward after the Civil War with 12 prior years witnessed the pre¬ of
capacity than at 110% capacity.
True, there are many similarities so much toil, effort and imagina¬ cipitous decline from 1929 to 1932,

drop

strives

the

sharpest

and

Each

bearish factor.

as a

the

weeks the chances are it will ad¬

the1 1920's,

backed

least

recent

During

wind.

refused

de-*

Stock markets almost never

cline

July and August or in the winter
from
mid-Efecember to
great further rise that period
late-January. Spring and fall are
feeds upon inflation and a con¬
the
typical seasons
of decline.
fident rosy view of the future. It
Thus, unless this market declines
is the last rise that sows the seeds
immediately over the next few
of the subsequent inevitable whirl¬

for

known

have

months

many

(3)_A

portant feature that distinguishes
the
current situation
from any

too

passed.

expansion;

1926;

bigger and far more im¬

A far

before

A further recovery and ex¬

tension of stock prices

produce will be quite unique.
1

(2)

each of the oaks they

but

ences,

has

been

Readjustment
belief

our

The ac¬
companying

tory.
rise

bond

since

prices

last fall broke

records.

all

dramatic

This

found

yet

business

re-

stocks

important degree, but in the past
has, and we think this

time will prove no

exception. The
of Dividends

of $1

to below $20 (which

re-

yield) and recently
was slightly above that level.
Incidentally, $20 is the average price
of dividends over a long period of

fleets

time.

tivity in

tion

of Dividends,

became

never

re¬

the

tracks better than ever.

by the record of our

Price of $1

virtually all ended in bank¬

ruptcy, but they were later
organized and put back on
The corporate

high-

the century

rest

early

Also, I will hazard the predic¬

that

bounces

1942 while
the Welfare State was conceived
brought through infancy and,

and

and banking era

series

the

then
came

adolescence.

tion

that

the

the demand for all

few

years

types of mate¬

rials, goods, products and services
will

greatly expanded by the

addition of

period of 1942-1946 was the
phase of recovery—the pe¬
of
1949-1956,
the
second

The

put together in the early years of

few hundred million

World

customers.

new

trade

flowered in the 1920's
and then was buried, but deep, in
the early
1930's. Now we have

first

phase

arrangement, and who can
it is not good? Certainly more
millions have more physical and

Russia! hungry for goods and-our¬

recovery

selves

new

say

creature
fore in

than

comforts

ever

be¬

history.

riod

of earnings and dividend
based upon solid busi¬
improvement. We have not
seen the period of inflation
drastic over-valuation based

ness

yet
and

wild and unrestrained imag¬

upon

Analysis of the present situation
and of the recent past in terms

inings of the future. This market
may be truncated and omit phase

of history

the growth of the Welfare
State may eventually snap in rerevival of business ac- verse, but they promise to sustain
my country; inventories
that economy for quite a few
with

;

There is yet no

nificant

but the

priced in recent years as they did
in 1929—and, in* fact, at every
major peak over a long period of
years.
Also, recent expansion of
debt in the U. S. was importantly
for government and
mortgages;
neither is susceptible to spiraling
deflation, as are inventory and
security loans.
The
stabilizers
grafted into the U. S. economy

it always

declined

shown

Market

Arthur Wiesenberger

ac-

Price

and

cant

tivity nor in the stock market in

Market

1957,

far more signifi¬
compelling.

differences are

uation has not

flection

and

1929

between

change in the
monetary sit¬

three, but all history suggests
this will not be the case.

suggests that this par¬

ticular Welfare State, despite our

sign of any sig-

that

not

yet ready to be laid

all

for

anxious

sorts

customer^ yet
barriers

trade

liq be¬

tween.

fraction of the world's
money and
substance
currently
going
into
armaments
and
non-productive
If just a

effort

man-hours,

militarv activities could be put to
uses, the face of the
around us would be trans¬

productive

great boom, has not flowered and
is

will open up one way or the other.
Here
we
have
the spectacle of

Mind

Mass

away.

world

Consistent

Whether this will occur
That lies in the future.
more years.
,
\
It is to be realized
that the
rapidly or slowly will depend
Economists are prone to analyze
great constant at work in the
Two Down
One to Go.
upon diplomatic and political at¬
the last- depression just as genstock market is the consistency of
titudes and activities difficult to
Now we come to what is per¬
less, the degree of declines previ- erals always fight the last war,
human nature en masse in its re¬
foretell and foresee at this time.
ously expected in over-all activity and although, as the Bible says, haps the crux of our long-term actions to stimuli. Stocks are high
But that eventually this will oc¬
favorable, view of the -outlook.
and earnings has occurred. Divi.
,,
...
,
priced on a 3% basis not because
;•
there may be no new thing under Every long bull market comprises
cur, there seems little doubt. That
of the 3% per se, but simply be¬
it can come quickly seems a rea¬
•From a talk by Mr. wiesonborger at
'he sun," there are no duplicates three phases:
cause
people so think, as they sonable
a
luncheon tendered by Lain? & Cruikprobability.
jn
nature!
A bushel Of aCOmS
(1) Recovery from the fear and did 25, 50 and 100 years ago. In¬
shank at
City of London Club, London,
In any case, the shackles that
1
ventories were built up and plants
England, June 12, 1958.
'
.
,
shows little in the way of differ¬ panic of the previous decline;
have held down this market for
expanded as late as 1954 and 1955
the better part of two years are
and even into 1956, in defiance of
formed.

still being liquidated, and ac-

are

tivily in most producing lines is
still rather quiescent; neverthe-

—

„

•

*Ibis

announcement
an

offer

is under

buy

any

be construed

logic, simply because it is human
to expect that what is will con¬
tinue to be in the future.

offer t-o sell or as a solicitation of
of these securities. The offering is made only by the Prospectus.
no

circumstances

as an

NEW ISSUE

arise

$30,000,000

has

yet

been

True,

sign that it will
there never is in

toward

regarded

truly
:

B. J. Van Ingen
(Special to The Financial

Adds

Chronicle).

of the matter
BOSTON, Mass. — Edmund G.
that the worse it Anderson has been added to the
gets, the greater the chance for staff of B. J. Van Ingen & Co.,
and probability of improvement,
Inc., 31 Milk Street.

is,

Company

(a Minnesota corporation)

The fact

course,

It is this constant manifestation

that

of human nature

Mortgage Bonds, Series due July 1, 1988, 4%

causes

pe¬

riodic, cyclical type of motion in
all things that depend upon mass
emotion
and
so-called
human

Joins H. P. Wood Staff
(Special to The Financial Chronicle)

—
Richard E.
McCowan has
become
affiliated
The three phases of
with H. P. Wood & Company Inc.,
recovery, improvement and infla¬
75 Federal Street.
tion simply result from the print¬
ing on the business and market

Due July 1, 1988

•

poor.

but

improve,
advance.

Dated July 1, 1958

might

of the simple fact that

out

there

way

our

that, if known ta us now,

situation stratospheric.

business

the

garding
business

First

merrily
levels

general misgivings re¬

Current

July 9, 1953

Northern States Power

rapidly being removed, and before
too
long we will
probably. be

BOSTON, Mass.

judgment.

Price

100% and Accrued Interest

situations

brokers

may

obtained in any State in which this announce•
only such of the undersigned or other dealers
lawfully .offer these securities, in. such State.
*

contents

the

Merrill

the

negative of human mind en masse.

The Prospectus may be
ment is circulated
from

Market

Slow

Motion

CHARLOTTE,
Sachsenmaier

interesting to observe that
this is a market in "slow motion."
It is

Fenner

If
it

Lynch, Pierce, Fenner & Smith

Clark, Dodge 8C Co.

Kidder, Peabody 8C Co.

Paine, Webber, Jackson & Curtis

White, Weld 8C Co.

has for years,

L. F. Rothschild 8i Co,
t

Baxter 8C

Company

R. S. Dickson & Company
Incorporated

Robert W. Baird 8C Co.

Shelby Cullom Davis 8C Co.

Goodbody 8C Co.

Incorporated

McDonnell & Co.

Fahnestock & Co.

should

Piper, Jaffray 8C Hopwood

—

David

added

Lynch, Pierce,

Smith, 222 So. Church

progress

occur

the ultimate top
time around

Joins Tucker,

Anthony

(Special to The Financial Chronicle)

some

February, 1962.

HARTFORD, Conn.—Gerard K.
much will hap¬

and

has joined the staff of
in the interim, of course, and
Tucker, Anthony & R. L. Day, 37
there would seem to be no reason
Lewis Street.
for hurried or urgent buying of
securities.
Nevertheless, in view
With Hincks Bros.
of the risk reduction that already
can

Stewart

pen

has

J. A. Hogle & Co.

been

about 2.4 times that of the

Much

Bache & Co.

consumed

has

the staff of Merrill

is
Street.
1920's.
the relationship continues, and

Time

Merrill

Lynch Adds

(Special to The Financial Chronicle)

taken place

and is going on,
be utilized

the current period may
to

place

portfolios in

to take advantage

should

position

of markets that

aggressively advancing

(Special to The Financial Chronicle)

NEW

HAVEN,

Buehler

Bros.

Conn.—Charles

now

Co., Inc.,

with

Hincks

157 Church St

Number 5758

188

Volume

The Commercial and Financial Chronicle

(107)

being. The theoretical deduc-

man

Towards

Better Understanding

j?°ns of
the constitution
t*
•

competition

be used to destroy

can

civilization.

Special Envoy of the United States

;

industrial

that

My
countrymen
pray
daily
alongside hundreds of millions of

friend of over 44 years can, among
Europeans that the ^danger signal?
to American isolationism is up.
The former
little fear of-such a retreat today but, in express¬

Speaking candidly
of

return

President has

ing disbelief that people with

free

interpret the American

•

elements of
have
yy-

monopoly

definitive:

from

men

them-

selves create.

During
t h e
last century,
and

new

revo¬

dis¬

lutionary
coveries

that far

lems

probfree

governments,
/

b'.'
'

*» t '•

*V"
i'ftV
111',

par
i-

The

mentary method which combines

legislative and administrative

and their officials

M'J*

World

;

are pe-

%
J
since the-First
War, the host of internal
-

But,

W<
t

•

especially

continent has resulted
tional

reaeh

and

determined

constructive solutions of their na-»

tional

problems
strangling chaos

brought

has

in. government*

Since the First World War 15 Eu"i : '

turned

has

been

the

ground

to their

world

two

these

lowed

score

Ira.

witness

the forces

collapse.

•

led

which

The

American

method

stability in our country
through every crisis and, in the
main, brought an orderly progress
the

midst

and ideas.

• ■

invariably at the request of

90% 0f their vearlv 'incomes

*£ f'

struggling

against

life
to

77%

these

profound

nations.

come

many

importance

From

our

scientific

and

g?^SST^ °V*

SirSSSia^oSig^
have a lasting peace,;

them

Never after victory did we ask

large fortuntes have

other
tional

estates

d to fade away.

oppres^

"rif
t
three gi eat wars. They died that

And

J
/,
But

been

their

for

have

acre

territory,

except

few military bases to protect the

free nations. We have never asked

great educa¬
institutions,

Continued

inventions

new

'
'

i.-;

The American people

wars.

directors

with other nations met these emer-

tation

: *

)■'•

''V;T
•

>''»r
';

■

...

it>

'' '.
■Henier,Viee President <t?

•,/-

y;; v r; FRANCIS S. BAER
''

■

•

'i.

V a> York {;

and

„

-w

the

over

world.

■-

•

' ' "

•

813,768,636.35

Loans

...

•

».

•

723,114.562.66

'».

«•

•

rl,435,606,305.15

;

State and

77,389,795.96

.........

22,643,053.54

32,969,882.88

Municipal Securities

Other Securities and Investments

ChMtrmrn,

•

V.'

t>..

>•

Banking Premises

01 iii

Direr/or.
Mnthicwn Chemical Coriinration

Accrued Interest, Accounts Receivable, etc.

9,836,854.17

Customers'

59,35^,828.18

3,872,000.00

LEWIS A. LAPHAM

Assets

|
f

''■!:'

THOMAS A. MORGAN

'■

•"

53,178,557,918.89

•

•'

AV York

Deposited against Bonds Borrowed

J'reritleut ami DitfPtar,
Kmt Connta. Land Compang

•

Acceptances

GEORGE G. MONTGOMERY

1,
.

Liability

/'resident and Director,
(trace Line, J lie.

—

•

JOHN W, HANES
'

LIABILITIES

I i

HENRY L. MOSES
i
Partner: Musts and Sinner
' ?
1 .
.
'

■

cerned with which nation discover.ed or invented what as I am
with wider distribution of each

sweat is taken

Amrrirun Urake Shoe Comimil
t
1

•!

and

i'reridrnt. Cull mail liroe., Ine,

,/v.

J;
1

countrymen have contributeel
to the world.
*
And my country in turn has
benefitted by the application of
the great scientific discoveries and

discoveries

'• *

U. S. Government Securities

; A> York

E. CHESTER GERSTEN :New York

nation's

■

President,

WILLIAM B. GIVEN, JR.
V

that

inventions

■

;

nation's, contributions to mankind
is "its scientific discoveries and the
application of these discoveries to,
all human comfort and progress.
I could recite a long list of .such
discoveries

■,!

Gash and Due from Banks

i--/..Urady. ijccnrttu A' HealtirCiirpuralion
S. SLOAN COLT

■

JAMES C. BRADY

4r,r,-'>

•

Invention
tests

•

Sharifig Scientific Discovery and r.,several

^.. '.assets

the

.•'

•

HOWARD S. CULLMAN

One' of

Omdetped Statement of Condition, June 30, 7938

;

Sfm'nr Virr President

BRI AN P. LEEB

NEW YORK

J. PASCHAL DREIBFLBIS
I' - '
„
,
Senior Viae President'

cx- .•>
(

;

Company

President

.Chairman of Hie Ailrisorn CammiUte

JOHN M. BUDINGER
,

for fixed

for other free

terrins

has

uses

men.

y.o

The World. Service of American
•

Productivity

I have little

reason

to elaborate

here upon the success of our sys¬
tem of regulated economic free-,
dom.

has

initiative,

built-in

energy,

impulses of

and

ambition,

opportunity. It has brought stu¬
pendous benefits to the American
people.

;

) j
>

Capital (p«r value $10

per

share)

$ 40*299,500.00

•i

■

JOHN M. OLIN
Chairman op the
J'inaiirial and D/irratino Patie/i'Committee,
Chairman 0/ the Ererntiir Committee,

inven-.

Thereby

Surplus

160,000,000.00

......

from the brows of

Undivided Profits

)
DANIEL E. POMEROY

•

Olin Muthimon Chemical Cot ideation

■

est fis

that

our

productivity

has

created great margins which have
■

•

Their

women.

hours

62,955,677.37

263,255,177.37

)

Sem Jerenj

increased.

are

Their

B. EARL PUCKETT
i

are

expanded. Arid above

They

are

i
.

many

now

cooperation

some

organization

•

,world-wide

My country desires to
cooperation expanded,
Thus the march of progress in the
such

See

world would be faster.
1

,
.

•

The Atom

;
—

•—

•

2,819,846,073.43

23,925,261.29

•

.V
•

tr.

• •
,

Less Amount in Portfolio

■

Other Liabilities

3,836,791.39

.........

53,178,557,918.89

**»...
'

j
l

-A

A«en carried at

$299,527,70.03

~ ~f

•

* "

July 4,

lass.

June 30, 1958 were pledjted-to «core

Coiieumers'Poiecr Can rim n</

deposits and for

other purposes.

•

■

And Peace

I'*'..
i

i,-'*2rv

3,872,000.00

New York

JUSTIN R. WHITING
Chairman,
Finance Committer,

it Co.

-1

60,800,152.91

6,264,822.71

Liability Under Bonds Borrowed

•

Acceptances Outstanding $ 67,064,975.62

Partner,,

miiney

■

Accrued Expenses, etc.

THOMAS T. WATSON. JR.
Prhlbnl,
International ttosiirers Machines CoriHjralion

i
1

3,022,462.50;

B. A. TOMPKINS

neers.

research.

Contpantf

teamwork by
skilled scientists and engi¬

"■

WALTER N. THAYER

•

often the product of

There is

General Etc'tric

now

Reserve for

WILLIAM T. TAYI.OR
Chairman,
AC'S Industries. IncoriHiratcd

inventor.

Deposits

(

Chairman of the Finance Cammittre,

;

■

Allied Stores Corpoiatian

PHILIP D. REED

;

longer do these discoveries
only from a solitary scientist

come

'I
i

all, scientific discovery lifts the
burden of poverty everywhere.
.

■

chairman of the, Hoard,

op¬

portunities for recreation and par¬
ticipation in the arts and intellec¬
tual life

Dividend Payable July 15, 1,958

reduced. Their days of

are

leisure

But to relate the

huge benefits
my people have received is not my
purpose here. The world's interr

and

men

of labor

■

ALIX H. ARDREV

■■•

Hoard

Chairman nf the

torted bodies and minds; And this v
i

WILLIAM H. MOORE

many

compassion; has
also1 been
tended to Communist Russia.

Bankers Trust

hope for a better day.
■
This spirit of compassion v.has
contributed also to the rehabili-

tions

•

Perhaps our experience in the
separation of executive and legis¬
lative powers and the election of
officials

page

na-

tions

years,

not

sustained

Moreover, in the last 40

of-

years

inventions of many other nations,
perfect, but for 182 ye&rs it has
I am not as much con-

fate

dependence for Puerto Rico.

of excep-

.men

la!e £^ea* Property. We have had

In few other nations have

nations, in despair,, have
to
dictatorships. And it

ropean-

account of the

**edom to Cuba ; and; the
Philippines and our urging of in-

economic

Jional ability or luck to Kntro >iorl
accumuint.e &reat nrnnertv
Wo

laws for

our

free

have

which

ines

the de-

political parties.: Their in-

ability

^mightwould"
"
world
take

that

minded

on? Monroe

recall the great faminevitably foi- •'

need only to

multitude of fac-r...

wfare hnperia^Janl

It spreads from every
I

problems'confronting parliamen-

velopment of

misren

fdeaL Ts

our

American home to all mankind.

tary government on the European
;

interpreting the ideals of my...

millions of chil**
riodically subject to election—all dren, diseased and debilitated by
at the same time. That method has famine.
Thereby,, the world has
operated admirably where its base been saved from the political and
rests
upon
a
majority political moral dangers of millions of disparty.

economic

our

regulated

astern permits

the fundamentals of fair and open

Compassion

margins on which to live and

British hold to the parlia-

powers,

Any

the fact that

cartels.

peoples.

the

tive officials is for fixed terms.
\

"createst

the

refentation

do"n»te the life, of our people.

free

ignores

legislative; selves food and clothing that more
powers,,, and the election of the than one billion of peoples all
individual executive and legisla-^ over the world might have the

•VI.

that

recall

from

institutions,

of our people,
them has more

t0 grind the faces of the poor and
b?
^exploit ,other nations. All this passes

two

separated

•>o i

I do not need

•

the
lb; *

Hoover

have

prop-

the

major methods of gencies. But the United States cargovernment among free peoples* ried the major burden. By longer
The United
States adopted"!a hours
of labor they
stimulated.
method where ; the executive is production.. They denied
them-

haunt

living

humanity.

many

/:"•••

these

country, I must include the spirit
of compassion towards suffering

in
thought
brought

have

the whole earth,

the prop-

are

? r
nornnrgiflmi ^

Un^r^l^^onfrof of0^wfcke^men

social

which*

world.

the changes

Hertiert

aaanda

ideals which motivate the lives of

One

which

lholSe,1s'Sn0o?00nninoi'VidHal St°Ck"

even economic blessings are the nearly seventy years have prohibspiritual and moral impulses and ited the existence of trusts and

science, great

world.

laboratories

nprcchf nftho

representations, and vicious
•

vital than

spurred

ideas

new

concerned, they

largest

-SS?h^te^K

experience in many nations,

know

research

out

pour

b^ a real disarms-, erty of millions
The

enabled us to support the freedom who Exploit

inventions and

are

of mankind; and to help lift the through gigantic trusts and huge
world's burdens of v disaster and corporations. They are supposed

of'my

has

•

internal poverty

ihey

has been

work

Doctrine, whereby, we
There can be no interpretation
L !
corporation.
have aided our Latin-American
of the American way of life in its
Another example of this propa- neighbors to secure their freeeffect-upon other-nations without ganda.ls .that we are mfested with doms. I could also recall our giv-

of life, actual performance, and
political system, and denies we
perfection in people or government. ~

and liberties

beneficent

Probablv

that

Misrepresentations

our

; One of the problems confronting
all free peoples is enduring protection of the rights

way

strength in

people

•

The Need to Correct Some

;

prop- ;

aganda about the U* S. A., points out why Americans have
more reluctant to
support international defense and
economic aid. The elder statesman pointedly answers unmerited constant criticism and attitudes held; undertakes to

'm"

should

ment, which will include disarming the atom.

become

■

peace-loving

there

could accept and

press

false legends, misrepresentations and vicious

act upon

other

warns

whose

extended to all the peoples of the

become open to all the world".
1 There Is No American Imperialism
Insofar
as
large
corporations

friends, Mr. Hoover

zealously

land, and it

By HON. HERBERT HOOVER*

been

m America into a S1' our industries to adopt every through organized research and
i?°Wf-+'
labor-saving device. And to create its world-wide application, practi^.lin£ benefits to man- them, there are more than 5,000 cally eliminated yellow fever from

.w-eS5L

Of American Ideals and Desire

competition

scientists as to maintained.
were.
This

of the atom

Thereis °ne scientific discovery
which deeply concerns every hu-

MEMBER

THE

FEDERAL

DEPOSIT

INSURANCE

CORPORATION

)

The Commercial and Financial Chronicle

(108)

characteristics,

Economic Picture
B- RAISTY*

l*y L

;■

grave

with
respect
to It has
great timber resources,
agriculture
or which feed new paper and pulp
manufacturing, light industry or mills. It has also become a large
heavy i industry,
and trade and producer of aircraft and automanul'acturing, become of prime mobiles.
importance in discussing the curLouisiana has cotton, rice, and
rent economic picture.
timber
products.
It
is
also
a

Today's Southern
*

iron

emphasis

-■;*

Vice-President, Federal Reserve Rank of Atlanta,

Atlanta, Ga.

banker brings

Banker's

which the

South has switched

from

one-crop

of its agrarian and

industrial life.

the

that

course

national

the

course

time,,

In view of the inherent

economy^ I

the

San

Francisco

declines

smaller

show

reflection

Although by:

means does the

the

i-ng and

has also become

im-

portant oil producer.
Tennessee has a varied manufactoring output in addition to
enjoying a highly diversified agriculture.

strength

economic

achievement.

The

Dis-

that the South
of

;

future

continued

e c o no

But

The State is

of the

one

Raisty

Louisiana

and

bands
were

the

bands

brought from the

pair of breeches from Chicago
a
shirt from Cincinnati. The

and

South
that

didn't

furnish

funeral

but

the hole in the

the

thing

the

for

and

corpse

ground."
all agree that we

can

South

have

much

made

since Henry Grady's day
making our own things, in

progress
in

developing

and

using our own
highlight thisi de¬
velopment, this progress that we
To

resources.

.have

made,

statistical

have made certain

comparisons

for

postwar period and made
of observations

Makes

First,

the

series

concerning them.

Statistical Comparison
in

terms

population

growth, the South,

represented

versification and its achievement

District, has slightly exceeded the
rate
of
growth
of' the
United

balance

workable

between

agriculture and industry, the Sixth
District has been relatively immune from the nation's current

for-, the

United

States

whple. Using January, 1955,

as a

base, the. index of nonfarm

em-

Sixth

the

Federal

Reserve

States. From1 1947 to 1957, the sixarea had a population gain of

state

19.0%,

while

States

was

that

of the

18.7%.

United

true, of
course, that this gain "in the six
states
was
primarily -in Florida
and Louisiana, which for the 10year period had gains
of 62.1%
and

District

19.0%, respectively. Georgia
gain of 15.5% and the states
of Alabama, Mississippi, and Ten-,
nessee had.gains of .less than 10%.

.^employment.in the Sixth District

During the 1940's,v the six-state
region, i according
td ; the
1950
Census,-' was' still predominantly,

MissisU' pioyment

and

coffin

North. They buried him in a New
York coat and in Boston shoes,

;

Because of its extraordinary di-

the

lor

Sixth

whether

turning point occurs in the
jecond quarter this year or in the
•third quarter is not of too vital
concern from the longrrun
point
of view. The most important con¬
sideration is to recognize that the

confidence

faces

trend.

halves

the

were

themselves

centers of hydro-electric
power and has extensive natural

this

"utmost

nriark the fend of

the

shovel that dug his
imported from Pitts-'
burgh. They buried him by the
side
of
the
best
sheep-grazing
country on earth, yet the wool in

major

resources.

I think

Federal

that

Mississippi

Thursday, July 10, 1958

Reserve District/;.bu®mefs recession. * . . ■
by • Atlanta'/-' compose>:tbe:'^jNon farm
employment - in the
entire South, its individual states; District is down somewhat from
are
representative
of
Southern *as* year but_not nearly as much

Sixth

economy

year,; Will
downward

excellent port

served
^

measures

say at the outset that I have

Served

nation s commerce.

their

and the stimu¬
trict
includes
all -*of -Alabama,
taken, I suspect
the, current quarter of "the Florida, and Georgia, the lower

lating

should like to

Reserve Districts of Min-

Federal

neapolis, Richmond, Atlanta, Dailas, St. Louis, Kansas City, and

Now
fiscal

is merely a matter of

Districts of Chi-

New York,J Boston, Philadelphia, and Cleveland show the
greatest declines in business actlvity. On the other hand, the

range

any

gion

Reserve

eago,

growth

and to avoid the evils of inflation,

particular

ished.

established

originally

were

Federal

and of avoiding deflation,
I
am
utterly confident that
a
resumption of economic expansion

will
u 1 tim a t ely
shape t h e
economy

manufacturing

facilities, the state has always
played an important part m the

greater emphasis upon agriculture,
that
both
monetary
and
trade and distribution, diversified
policies have been shifted
of to
the
problem of avoiding a manufacturing, electric power
downturn below the stabilization production, and forest-products.--'J

^picture today, however,
with the

Its

petro-

still primarily
on
trade area lines. With heavy agricultural in
character. Since
concentrations
in
automobiles, World
War II, however, it has
steel, and heavy equipment, the made great strides in manufactur-

must necessarily be made

field.

one

industries have especially flour-

fact,

financing resources since World War H has outstripped
.the nation, and share of the nation's manufacturing activity
has sharply increased. He also cites deficiencies still to be
overcome
and predicts Mr, Grady's goal "seems now to be
nearing achievement."

consciousness

chemical

represent a convenient
''means of distinguishing regional
'variations. The
12
Districts, in

Mr.

Raisty points out, for example, that the South's rate of

major oil producer and is
the leading states in the

divided

economic

The 12 Federal Reserve Districts
In
which
the
United
States*' is

sys¬

Any discussion of the Southern

Economic

Picture

rehabilitation

tem to

•-

National

the Southern economic picture into

Henry W. Grady, the Atlanta Federal Reserve banker shows

extent to

•

Reviews

sharp focus in a state by state comparison with the national ;
average and summary of gains since World War Ii for such
indices as: manufacturing, population, personal income, agri¬
culture and industrialization. Recalling the prophetic warning
of

upon

had

Reviews

the
'

•.

Alabama

Sixth

Southern

District

:{\ j I; Irr Februaryc was -abouL l%r less

is identified With

the United . States Tor-

jthe

types of manufacturing,
centering
around - Birmingham,-^Employment m the District s
But it has vital port facilities at transportation
equipment,jDnmary
Mobile and, in addition to exten- metals
and v lumber and_# wood
great steel complex of industries

rural

character.

Louisiana

and

Only

has

Florida
urban

rural

than

residents.

Declining
indefinitely
dependence upon cotton, the de¬
withstand the stimulating effect of
velopment of beef-cattle raising
easier money, an enlarged flow of
and dairying, and the spread of
confidence that the outlook for the Government
textiles is showing mechanization in
spending, and Fed- sive cotton and livestock produc- Products
economic future of the nation is eral deficit
agriculture have
spending. It is with tion, has emerged as an oil pro- the greatest decline. Tn the fabnone of expansion.
'
that conviction, therefore, that I ducing state. Its forest industries cated metals, food, chemicals, ap- compelled a large movement of
From a broad range point of
Parel> and paper industries, em- population from the farm to the
present a review of the South's are also of much importance. ! i:
With
the -<•* exception 1 < of
view, I am not particularly dis- regional
Florida, in addition' to being pioyment totals although showing city.
characteristics
and
a
turbed about
the
Florida, where .only; one county
downturn
in summary of its economic
gains one of the nation's favorite resort some decline.are generally not far
showed a loss in population, the
many of our economic indexes. I since World War II with the as- areas, is a leading citrus producer. from the levels reached in 1957,

expansion and
expanded economic opportunities,
I say this because I have
equal

see

the

downturn

measures

cannot

Extensive

being pri-' surance that these gains will con-

marily the result of monetary and
fiscal

downturn

taken

tinu*

be recorded in the im-

late yT'* ^
the current

1955

Inasmuch

•

through 1957 to restrain

economic

growth to sustainable proportions

sion

has

been

most

come

reces-

severe

timber

resources

■'- *■"-:

t'.V

Georgia has long been one of the
leading textile producers.
Like

durable goods, its impact has been

the
tbe greatest i n those areas ill the other
states of the District, it
Sponsored by which heavy industry is an imAmerican
Bankers
is an important cotton,
Association's
Trust
tobacco,
Division, Atlanta, Ga.
portant economic factor. Regional poultry, and livestock producer.
♦An address by Mr. Raisty before

in the District have been about

the same as for last year.
important manufacturing District member
bank

area.

Farm cash receipts in early 1958

are

joined with livestock raising, and
in recent years the state has be-

Southern

through

March

?enei a}l?.

this

have

year

?ontiilu^ Jbe upward
been characteristic

Refers to II. W. Grady's

reviewing

; -

27"* announcement

neither

offer to sell,

nor a

solicitation of offers to buy.

'Me offering is made only by the Prospectus.

NEW

any

of these securities.
'

ISSUE

$25,000,000

The Mead

position

the

eco¬

it
might be well to call to mind the
eminent Georgian Henry W. Grady
and
his
parable
of
a
Georgia
funeral. I am reminded of Grady
and the statue of him, towering
above the figures of two women.
This

what

Hal

think

Steed

his

"Georgia: Unfinished State," pub¬
lished in 1942, had to say about

Corporation

Grady: "Grady in his field was a
unique figure of reconstruction.
lived

4% Debentures due July 1, 1983

for

his

generation

the

The

was

abandonment

farms.

problem, as he saw
rehabilitation of its agrar¬

ian and industrial life. He

pleaded

may be obtained in any state only from such of the
underwriters,
including the undersigned, as are registered dealers in securities in such state.

•

Harriman Ripley & Co.
IXCORPOHATED

G. IL Walker & Co..:
--Glore, Forgan & Co.
July 9,1958

The

adjustment that is going on
South is to be anticipated
region where agricultural
employment is declining. As labor
has been displaced from the farms,
the
a

has

cities

tended

migrate

other

opportunities

for

ment

available.

became

other

the

where

areas

employ¬
Between

1930 and 1940, a period of general

economic

stagnation

and

lack

employment
opportunities,
the
of migration from the South
was
less
than
1%
of the
1930
rate

population.

But

the

decade,
from
1940
to
1950,
a
period of general economic ex¬
pansion and new employment op¬

portunities,
from

the

South

migration
rate
7% of the

was

1940 population.

Notwithstanding

the

high

rate

of movement of Southern workers
to urban

areas

following 1930, the

State's

-Copim. of tlu Prospectus

Drexel & Co,

37 out of 77 in Tennessee.

population of the South

proportion of the rural residents,
however, did not depend upon ag¬

resources

and the

encour¬

of new business enter¬
prises.
Georgia, he maintained,
bought too much from other states
—it must produce more."
agement

from

against Georgia's one-crop system,
preached development of the

(plus accrued interest from July 1,1958)

r -

counties

population

Georgia, 30 out of 64 iii Louisiana,
59 out of 82 in Mississippi, and

South's

it,

Price 99.125%

and

thought beyond it. He noted the
beginning of the centralization of
population and wealth in cities
and

ing losses numbered 43 out of 67
Alabama, 98 out of 159 in

South's

today

losses

Prophetic Prediction
In

showed

states

Sixth 1940 to 1950 than counties with
loans gains. Counties or parishes show¬

* ,e
slnce tbe m,ld
downturn °* 1954.

nomic

six

with

And then Steed gives the much

60%

rural in

riculture
Of

1950.

for

income.'

Southern

workers

pendent

was

still

A substantial

Only
were

agriculture,

23%
de¬

forestry,

and fishing in 1950, compared with

quoted Grady; parable of a Georgia 44% in 1930.
funeral. "The corpse," he wrote,
Gains Made in Personal Income
"was
a
poor,
one-gallus fellow.
Second, percentage gain In per¬
They buried him in the midst of
sonal Income in the six states from
a marble quarry; they cut through
marble to dig his grave; and yet 1947
through 1956 substantially
exceeded the percentage gain in
a little tombstone they put above
such income for the United States.
him
was
from
Vermont.
They
buried him in a pine forest, yet Personal income for the United
the pine coffin was imported from States rose from $189.1 billion in
1947 to $324.3 billion, in; 1956, a
Cincinnati. They buried him
within touch of an iron mine, yet gain of 71.5%. For the six
states,
the nails in the coffin and the personal income rose from $14.6

Volume

5758

Numbei

188

The Commercial and Financial Chronicle

billion

82u8%.

Alabama's percentage gain

$26.6 billion,

gain of farm income in the Sixth District

states v,<*„

->t of

period was 64.9%; Flor¬
128.8%; Georgia's, 79.8%;
Louisiana's, 90.9%; Mississippi's,

The

ida's,

46.7%;

Tennessee's,

and

Three of the states,

ida,

Georgia

and

trast,
ing

namely, Flor¬

Louisiana,

piace

greater percentage gains than did

opments

the

Department

United

States.

Although
tered

the

South
has

than

the

siderable deficiency
Per

come.

con¬

gap

$1,940., No

States in

state

Georgia

1956

the

with

$1,400
were

from

for

1958.

1933 to 1957, the
Agriculture esti-

rise

giving

and

prices

are

those

gain-in

efficiency.
flocks

response

District

last

production

same

and

size

and with feed

year,

down,
should produce

favorable
herds

about the

prices

the large farm,
which is becoming highly diverway

District
more

Not all communities will benefit

in
in

farmers
livestock and

poultry. Other than cotton, District farmers plan only a small

cApected rise in

—v.

farm

output.

This

year,

nai-fioinafinn

far-more'

10^7

in*

1957, farmers' participation in

the

corn.

Currently, a larger farm output
the region is in prospect for
It is anticipated that live¬
stock
and poultry products will

re¬

We all know that the small farm-

was

six-state

$1,444

Louisiana with

26% of the total to only 12%.

over¬

capita personal income

for the United

$1,940.

gain

United

States, the region still has

peanuts, tobacco, and

mates that United States farm
population decreased from 32,393,000 to 20,396,000.
In this period,
the farm population dropped from

regis-

percentage

greater

income

has

con

has been tak¬

agriculture.

total

productivity occasioned oy
restrictions
on
fnttnn
restrictions
on
cotton,

acroaffo
acreage

COn—

lation to general economic devel-

had

eq.—_

loss of

1Q47.

n.
gain for the nation, in
in
was 2.3%.

A massive change

64.5%.

and forest products, giving the re
gion gains that tend to offset its

the

for

(109)

Soil

Bank

will

lower

crop

for' tile

99.2%.

i period,
in cOptras/, was
With the single exception

of Alabama, each of the six states
Vm/1

than

that

marketings in some places, especially in Mississippi and South
Georgia. Better yields, of course,
could partially offset
the effect

had

of larger participation in the Soil

had

gain

greater

nation.

Florida

percentage
of

the

and

Bank

could

spectacular gain of 196.0%.

Louisiana and Tennessee each had
a

gain of 101.6%; Georgia's gain

90.6%; Mississippi's, 83.7%;
Alabama's, 71.5%.
livestock
In electrical power production,
Alabama,
South the District has
registered a strik¬
was

larger

marketings
in
Georgia, and Tennessee.

ing achievement.
owatt

Fifth,

the

nwAnciA/l

region

has

olinun

sharply
Mall

hours.

duction

All

increased its share in the nation's
manufacturing activity. From 1947

1947, the six

produced 25,806 million kil¬

Increased Share in Manufacturing

A. J.

was

82,513
mi_

•

the promillion kilo-

1956,
..

'•

hours.

watt

219.7%.

closest in the group to the national

Tennessee had $1,317 and

average.

Alabama $1,229.

$964,

Mississippi, with

farthest from

the

was

national, average.
.n

gains

These

^South

the

income

the

especially j noteworthy,.

are

for the area had been badly out-

paced in the advances! achieved by
the nation. In 1.930, the six states

had

capita "income of $312
the United States "figure

per

against
of

exactly 50% of that of

$624, or
the nation.
income

for

In 1956, the per capita
the
six states
was

$1,387,

which'

71.4%

was

the

nation's average.

V / ;
V ' ; ~
gain in income has come
three
principaldevelop-'
(1) a shift of the working

This

from
<ments:

force

from

less

productive

types
productive types
of work; (2) heavier capital in-- •
vestment; and (3) increasing effi¬
ciency of the labor force.
- - > j. ?
Until recent years, most of the
South's factory workers were em- e
ployed in textile, lumber, and apparel manufacturing, all having
low productivity per worker.
In
more recent years, the six states'

1858

of work to more

«■

(industrial

has

growth

been

HAPPY HUNDREDTH

OUR

-n

resources

/•

Cash and Due from Banks—

•.

———-•<

$ 82,077,208.59

U. S. Government Securities

types of manufacturing with rela¬
tively high productivity, namely,
new
or
expanded
.automobile
plants, pulp and paper mills, arti-^
ficial fiber plants, aircraft indus¬
tries, chemicals and allied prod¬
ucts, fabricated metals, electrical
machinery equipment and sup¬
plies, and oil and gas processing.

Federal Reserve Bank Stock—
Other Bonds and

Securities—_————J—L—^

Loans and Discounts

—

Interest Earned but Not Collected

—_

Furniture and Fixtures (All Offices)———

Reak; Es t at e
Customers

Expanding Financial Resources

Other

rU - - - - - - —- - ^
Liability—Letters of Credit^——
_

——+-

Resources—

—

———

-—-

Third, in the rate of growth in
financing
War

II,

since

resources

the

states have

six

stripped the nation.

deposits

end

the

$247,420,882.82

out¬

LIABILITIES

In 1947, bank

Sixth

states amounted to $8.4

the

World

District

billion. At

Dividend Payment

July 1, 1958—
Reserves—Taxes, Interest and Expenses—

1957,' they amounted
$13.9 billion, or a gain of 65.2%;.

The

gain

from

for

1947 to

states

the

United

the

1957

with

group

States

41.5%.

was

the

gain

bank deposits for

that
a

period

that

the nation.

Letters of Credit Issued

$225,716,474.65
200,000.00
1,970,973.80
1,340,989.55
624,511.96

—

ex¬

Capital Funds:
Capital Stock.
Surplus

the

exceeded

Alabama

—

Interest Collected but Not Earned

All

ception of Mississippi experienced
ten-year

——

had

Georgia, 42.3%; Louisiana, 72.1%

Profits

Undivided

gain of 45.9%; Florida, 127.1%;

5,000,000.00
10,000,000.00
2,567,932.86

17,567,932.86
•

;

•

;

$247,420,882.82

Mississippi, 40.3%; and Tennessee,
44.1%.
In

bank

from

1947

debits,
to

the,
had

1957

six

Our Trust

states

Department holds in
which

gain of

are

excess
not

of $175,000,000.00 in Personal

Trust Properties

included in this statement.

176.5%, while that for the United
States

was

There
; gap

134.8%.

is, of

course,

between
of

sources

those 'of

the

six-state

the

United

whole.'

greater
-

resource

ite

re¬

area

States

and
as

region achieves
utilization and

financial.

resources

ciated

farm

-with

raising,

has

cultivation,

cotton

been

II
mm
.

the

region's

pace

■

Since 1858

indus¬

quickened,
this
should be steadily narrowed.

Strides

important

trialization .* has
gap

asso-

contributor to the relatively low
financial status of the region. Now
that

tS,

tobacco'

and
an

f\
u:

may

be expected to rise. The region's
long-time preoccupation with in¬
tensified

the

wide

expands its manufacturing activi¬

ties,
•

still

financial

Agricultural

Kentucky's Leading Bank

Income

Fourth, ill agricultural income,
the
Sixth
District has made a
>

greater percentage gain than has
the
nation.
In
1956, total cash

MEMBER

FEDERAL

DEPOSIT INSURANCE CORPORATION

•

This is a
gain of
The gain for the nation,

and

FEDERAL RESERVE SYSTEM
61

The Commercial and Financial Chronicle

THOJ 1

all, four

to carry them out.
meetings were held

the

•In

.between

development by Senator
of civilian nuclear power pro¬
gram involving $1.3 to $1.5 billion over a five to seven year
period; involves 21 reactors of different types; includes
extension of capital subsidies to both private and public power
companies on basis of existing 4-to-l ratio between conven¬
tional private and public power, with grants not to exceed
90% of estimated difference between nuclear and conven¬
tional plants of same output, and calls for a burying of the

Press

Club, my talk
dealt with the investigative and
policy forming roles of the Joint
Committee

This

ction

with
p

was

co n n e

the

o n

This

lem.

the

not

occa¬

sion to repeat
I then

but

should

not

expenprom-

pingport atomic power plant—our
full-scale project—went into

without a hitch.
searching of last

operation

Out of the soul

items

has

fall

emerged

also

work

cooperatively

fession

good

Our estimates show

the soul, and

for

Commission
-,

outlined

also

It is rather remarkable that there
rptiiv

little

Hisaerppmont

annual

broad technical program, in- js reaiiyiiiue^ aisagreemeni as 10
the projects which should be un10 I
eluding a number of reactor pro- tne projects wnicn snouia De untotypes and full-scale reactors for dertaken in any expanaect proa

the period 1959-G3
the AEC
long-term program statement represented a genuine step forward,
All

and

things considered

attempted to be responsive to

xi.u* ut,c naa u,uv

this

hour,

want

continue

consideration of
tions

and

also

with

some

policy func-

our

touch

formational

role.

neither

Chairman

the

The results of these surveys all
indicated

in-

our

that

regret

what

friend

mine

always attributed to fishing. When

things
that

got

was

with him that

Qulckly fou»d that the pr°gram

significant limitations.
For
example, AEC has the right to
discuss
but
not
the
right
to
determine.
Overriding authority

has

still

the

with

Bureau

the

jother cure. It could be that while costs
members of the Committee, in- of
current
from atomic
plants
eluding myself, could attend the still seem to be sky high, there
Nu clear Energy Writers Associa- may be nothing wrong with the
lion's meeting last fall. But from atomic power industry that a few
what I heard afterward, perhaps big
orders
wouldn't cure. The
it was just as well. The country more we build, the quicker we
was in a fit of
anxiety with the will learn.
Soviet Sputniks. And the atomic
Thus our big problem is volume.
power industry was in the depths Or
putting it in more academic
of

gloom

prospects.

parent that
orders
such
and

wliich

June

SDGnf

industry did. not do
It is unfortunate

single

The

•

power

Rather

several

concluded

was

foe

necessary

"generations"

that

inter-

industry

W8S re—

the

thing

vnlue

oi the reactor concept

indeed

the long-term

Takpn

who

recommended

government

support

power

development

cialist"

the

public

Joint

thal

other

greater
atomic

of
was

power

hand

"ko-

advocate,

members

Committee

were

there needed to be

upset

wrangle

the safety of the Detroit Edi-

over
■Con

project, and ovei the- unsuc—
cessful attempts ol the Committee

FkJ™6

•

iJ1on

fall several other factors affecting
the industry have also become
manifest. 1 The first is that the
projects have taken on more of a

first generation type

intermediate

It was not unexpected that
some

and of

small

Second is that the number of

atomlc power pr?i?cts

well I

get

worse

finds
We
now

wasn't there. For I

umiil/1

Vioun

„

all

appears

look

over

not

be
we

pleased

that

able

may

the

hump,

quite

several ways which

S9S8*

address

even
over

are

it.

above and

Sen

Annual

Writers

X«1 J

before they got belter,

can

♦An

Progress Has Been Made

may

4th

roid

(

Meeting,
Nuclear
Energy
Assn., New York City, June is,

has

failen

would

send a

worldTntere'st"and

further

matter

which

the

Joint Committee is addressing it-

„

.....

Congressman Holitield m
his
opening-statement on June 4,
called attention to the need for
positive AEC direction of this
program. Instead of the currept
Jaissez faire
system whereby
remains "willing to consider
AEC rei

iv-1

reactor

per

and

However,
our

offer to sell

solicitation of offers to buy any of these securities•

nor a

•

•;

...

July 10, 195S

ISSUE

■'f

250,000 Shares

Boston Edison

Company
i-r

Cumulath'e Preferred Stock, 4.78% Series
(Par Value £100 Per Share)

Price SI01.80 per
plus accrued dividends, if

any,

•c

>"•'

* ■
<,

-ft

front date of issue

arc

apparently constructing large

reactc,rs up to 200,000 kw per reactor an<* 400,000 kw per station,
We have, I am sure, made some
progress since last fall in comingup

with remedies for

^°.V. Aknow»
initiated

our

Chairman

ills. As

Durham

series of informal dis-

cussions with the AEC to develop
mutually
acceptable
objectives

Copies of the Prospectus may be obtained from any of the

the-.

several underwriters only in Stales in

fir

writers

of the ingredi«<
the AEC pro-

are

which

qualified to act

-which such under¬

dealers in securities and
be distributed,

Prospectus, may legally

the

.f h
■

The First Boston

accordance

make

its

own

witli
con-

it did in the hydrogen

development. To that end,
sjaff was instructed to prepare

per

which

t0 bomb
a

draft

based

report

its

Eastman

Blyth & Co., Inc.

Corporation

representative
_t

Walter

General

panel
*i

•

reactor

Goldman, Sachs & Co..

Dillon, Union Securities & Co.

Co.

Hornblower & Weeks

Kidder, Peabody & Co.

Incorporated

Merrill

Zinn, President,
Engineering

Smith, Barney & Co.
Coffin & Burr

F. S. Moseley & Co.

Paine, Webber, Jackson & Curtis

White, Weld & Co.

Stone & Webster Securities Corporation

Estabrook & Co.

Lee Higginson Corporation

Hayden, Stone & Co.

Incorporated

Spencer Trask & Co.

Salomon Bros. & Hutzler

Ladenburg, Thalmann & Co.

Tucker, Anthony & R. L. Day

W. C. Langiey & Co.

R. W. Pressprich & Co.
Shields & Company

Shearson, Hammill & Co.

L. F. Rothschild & Co.

Board of Scientific and
Engineer
Research,
Princeton

man,

University.

Chauncey

Starr,

President,

American Nuclear Society, and
Vice-President, Atomics International.
Mr.

O't:

Lynch, Pierce, Fenner & Smith

Dr. Henry de Wolf Smythe, Chair¬

Dr.

,c\

Lehman Brothers

Nuclear

Corp.

Harriman Ripley &

dis-

cussions with AEC, and also to secure
the
informal
advice
of
a

Dl,

f r

tradition the Joint Committee

500,000

M
NEW

Contribution

+1-V^,i..

station. In Soviet Russia they
also

><■

.■

Joint Committee Independent

tribution

to that which is occurring abroad,
Pntrlnnd

many

already

are

new

almost

vehicle to lb. moon

gram uaipmpnt
statement.

nothing.

opinion

ents

also wishes to

The pattern that has emerged
controversy would rub off. here in the United States in the
writers. And, as I
say, it, is post year is in marked contrast

Hfdhnhlv

trying'to

genuine psttcni for

size,

of this

just

pro-

can
sponsor
and
Committee can support,

joint

research and development character, with the building of plants
of

•>'i

discussions

AEC

r^
•
head shaking of last

Since the

continued

coiTie

nirppfln«

one

billions

hope that out

atomic power development

Tiiffprpni

these

Ccin

be determined.

that everyall right, and that any-

was

miiitarv

the

abroad

when

old pap

same

The offering is made only by the Prospectus,

will be resumed,

mediate and full-scale reactors of

the same type before the economic

stomic

ceiving from the AEC at that time
was

...

This advertisement-is neither

•<;,

understand that these discussions

atomic

to that time in

the

Joint

did not have an opportunity to finish its discussions

Ail

that the

Committee

support

written.

were

situation^ was as bad domestically wiii
with
not a

and

the

described in the appen- sell are the policies of the Power
Reactor Demonstration Program.

on the power reactor demonstration program. Most of the discussions were concerned witli the
1959 facility projects, the plutonium buyback policy, and Euratorn. In any event, I hope and

Italy,

so.

primarily technical and
financial, that is to say that it was
not possible to jump from a rebetter than ,actor experiment to a
large-scale
releases on- demonstration of economic power,

plants,

Ot st

t-1

the expanded pro-

cumstances the AEC might construct experimental prototypes
and other reactors where private

with AEC

were

home

account

cost less than

Reactor Projects

gram and particularly the policies

lems

into

demonstration program, though it
indicated that under some1 cie-

that the prob-

other round of the power reactor

terms, the findings of the surveys

"firm"

•

effort contemplated for the pro-

were

$1,300,000,000

mUch

takes

esteem.

£!*am> as

o.V

ex-

Period. This is truly atoms

peace

JCommittee'Vs emisiderfne^'more
The scope of

'.{n:

> ICt

•■Tf
,{'P

year

^k 1[ t J?v® a^whth Var^

'■>\f

nny

an(j seminars

America,

were

plant ordered

contain

not

ap-

of the press

they

did

and

power

Latin

Japan,

tho paper

ij'"

''HI

of the monetary level of;

status

so-called

atomic

measure

becoming

was

the

for

its

statement

he would say gram for the five-year period,
nothing
wrong Finally the program merely probig fish wouldn't vided for a continuation of an-

nor

r.jt.'

■■.I- f.

and■ manned space

rough

there

''Ki

lasic,

Fu7eCea^dP°the°AEC stltement
tute> *naTlie AiLV, siaiemeni

■iiv.

$1,500,000,000 over a five to seveh

'^ro&'Report

two yea is ago wim ine

Is,
AEC
would include •.
about 11,
diagnosis,of our ills. The reports. BudgU and after the x*~v~ had
reports, Budgbt «,.«
by the American Assembly, and discussed favorably—I do not say reactors of diversified types, m-r
in
September cimton p. Anderson
National Planning Association, agreed upon because the discus- - eluding nine of large size, toui
of 19 56', in
the surveys by Nucleonics and the sions were always regarded as °*intermediate size, three of
August of 1957 and on May 9, Atomic Forum, and the seminars tentative — various projects, the smaJl size and live reactor ex-:
1958, the Joint Chiefs of Staff by the Joint Committee and AEC, Bureau of the Budget cut them periments.
It is expected thai
have recommended that additional all helped reveal what ails the' out from the authorization request only about a halt of the 21 pro]-.
lium
supplies of plutonium be made industry.
lor
Fiscal
1959.
Moreover, ■ the -ects would actually be constructed
nothing gets done.

tii

be the $100 rn.lhon
piogiam.
Thus the

base

approximately

S'two"withtiie'Task lor

persuade us
to forget that

available—and

total

piviiinn nrn*r«m
total civilian program wnnlri post
would cost

.
,
*
development knd construction in

better is

that the Joint Comr

mutually acceptable program. '

pe^Vh^TeersTowing

other

first

let

scale and pace of effort. But that
was not the case in our original
discussions with AEC which were
held before action by the Bureau
°* the Budget. It is interesting
that our Panel of advisors con¬
firmed the level of effort which

sure
can

f feel
mittee

AC-

hope AEC will agree.
penditure of about $875,000,000 of
Another thing that the Com- capital and operating funds would
1
(2) To achieve economic power mittee can suggest is a more de- «"e needed foi the expanded pio.abroad in five years.
"V finitive statement of reactor proj- gram for five to seven years. This
(3) To fortify U. S. leadership ects for design and construction would average $125 million per
in atomic power development.
in the next five to seven years, year over seven years. In addition

I laforable .resets,' ana'

press

the

water

boiling

Public, Power Association.

(1) To achieve economic power
in this country in 10 years;

„

mental reactor have looked

what

jsaid

•—.

narrtir

with the AEC in coming up with

follows:

as
;

have made progress since last fall:
Thus during the last six months
the technical results of the five-•
«
x„
year
experimental reactor^program sponsored by the Joint Committee
were
increasingly beginning to be felt. Results from the
Argonne

supply prob¬

•

completed.

One would think that the disagreements might come as to the

The atomic

—

are

Mr, James Grahl, Director, Atomtp
ie Energy Service, American
Service, Amr»i«ir»nll

revealed, in part, in the re- *
One
of
the things the Joint
cent hearings held by Chairman Committee can contribute to the
Chet Holifield of our Legislative program statement is an analysis
ori&inally discussed with
Subcommittee. As you know, AEC 0f some of the problems besetting AEC,
In each case the method
stated some fairly firm objectives the industry. AEC understandblv used for calculating the amount
for the program, on which there did not exactly stress how it got was different, but the level came
can belittle argument. These were
into its current fix. I believe con- out roughly the same,

The

Washington

after design and feasibility studies

Co., and
,

were

of Federal Government's role.

„

discussions

The results of these

"watch dog" of Congress explains the purpose of Joint Com¬
mittee, terms public and private power issue as a "phony,"

spective staffs.

power

Anderson envisions expansion

and makes clear the purpose

Commissioners, and about a
dozen meetings more between the
AEC General Manager and
our
Executive Director plus their re-

Senator (Dem., New Mexico) of the United States
Vice-Chairman, Joint Committee on Atomic Energy

between AEC and the Joint Committee.

_„j

Development, Com-

mdnwealth
.

and

By HON. CLINTON P. ANDERSON*

hatchet

,_l,

x~.

Proposed pattern of atomic

program

Edison

and

Committee members

and

A Pattern for Atomic Power

Thursday, July 10, 1958

Titus

LeClair, Manager, Re-

G. H. Walker & Co.

E. F. Hutton & Company

Baker, Weeks & Co.

Chace, Whiteside & Winslow, Inc.

Goodbody & Co.

Schwabacher & Co.

Chas. W. Scranton & Co.

Townsend, Dabney & Tyson

J. Barth & Co.

Putnam & Co.

Shuman, Agnew & Co.

Dick & Merle-Smith

•

Courts & Co.

Hanrahan & Co., Inc.

Moors & Cabot

•J

Volume

Number 5758

188

any

proposal"

then

haggles

for

next "two

■

the Joint Committee has
suggested that AEC designate the
specific project it intends to sup¬
port. AEC would be expected to
obtain prompt proposals for de¬
tailed design- and construction of
the project,4 and if a bona fide and
satisfactory proposal was not re¬
ceived or negotiated, then AEC
Would proceed ::with construction
years,

contract,

under

■

seek

you

it.

do
V

which moves, that will

program

addition ■

constructing

(111)

alternative which fol¬ manner which will promote re¬ but also include a contribution in
the lines of some of search and development
the form of a grant perhaps not
our discussions of last year. • Why
More specifically my proposal to exceed 90% of the estimated
shouldn't
we
encourage private ■! would work something like this: difference
between
the
cost
of
and- Government ; plants
in
the
the nuclear plant and a conven¬
(1) This demonstration program
manner best suited to get reactors
would apply only to "second gen¬ tional plant of the same output.
built and operated for research
(3) Assistance to public and co¬
eration" of reactor projects de¬
and development purposes? This
p o w er
organizations
signed by AEC from the approved operative
would mean some sort of a capital
would
follow
along
the
lines
list of desirable projects for the
subsidy to private; operators; and
established by AEC in the second
period 1959-63.
an extension of the second round
round, with the AEC responsible
/:
(2) Assistance to private groups
for public and co-op owned sys¬
would not only include research for construction and ownership of
tems.
To this end we might con¬
the reactor and the public body
and development assistance and
sider application of. some sort of
responsible for construction of the
waiver of use charges as present¬
an
equitable ratio of support to
turbo-generating
facilities
and
private and * public plants in a ly provided under the third round, eventual operation of the entire

and gest

plant,

'the

for

The Commercial and Financial Chronicle

...

lows

one

along

AEC would provide steam

plant.
from,

...

the

Government

public

body

conventional

steam

from

(4)
would

made

to promote

struction

of,

design and con¬
generation

second

Continued

on page

through the
of
soliciting
proposals, waiting for turn downs.
The" gas cooled reactor is a case
in point.

Joint

the
definable

Committee may also point out
need for somewhat less

this easy

Save

providing suggestions

policy and program, the

ingredients in the program. One
these is imagination.J An ex¬
ample is the process steam reactor
problem.
The Joint Committee
expressed interest in this type of
of

several years ago.
to •-questioning
interest
in the

development
AEC

response

mild

indicated

But to date AEC has not
on
a
feasibility or

subject.

carried

eveh

design study,

considered the

nor

economics of specific

applications.
that the

out

turn

well

could

types of assistance required for
procfess steam reactors are differ¬
ent than for the electric power

Write your name. Write your

reactors.

deposit. Mail it with

Of course, imagination may be
tarried too far. I have reference

the generation
the heating of
rocks from
underground explo¬
sions.The Rainier underground
speculation

your

check

that

in it is

when you

each year.

and
Well

your
I'

/'V

Remember

Account; $5 to $20,000 in

it and

proudest possession.

your

reactors con¬
and dreamed
about, which has been trotted out

Performance

•

saving makes foster saving and

Dime bank book with your name on

money

list of
planned,

AEC's

your

Money Order and feel

million.

You'll find that easy

test 5 threw cold water on this
Concept.
Considerable
imagina¬
tion was also required in getting
structed,

address. Write in

of power based

have

save

when

bank by mail

you

Joint
we

•

'•

at The Dime you can

deposit from $5 to $10,000 in
or

pay

Individual

Trust Account —

all the postage.

Claims

A further, and more important,
needed for an ac¬

characteristic

atomic

celerated

lie

program

power

is both drive and determination on

the part of the AEC to see that

all agree upon are
This will
difficult task initially
in

objectives

DIME

the

carried out successfully.

view of the changes in personnel.

But
the

insurmountable,
accomplish
it

not

will'

if
is

this coupon
•to

come

program

atomic

friay

for.

get

The

the

Under

off

assistance

financial

program

—

Fulton St. & DeKalb Avenue

bensonhurst—86th Street & 19th Avenue
flatbush

account

cone y i

Com¬

The Dime

program

ground
because the amount and types of
never

deposit

Ave.

—

] & Coney Island Avenue

sland—Mermaid A ve. & W. 17th St.

power

Joint

the

which

called

mittee

open an

„

may

balanced"

well

make

•or

"
However, with all the necessary
drive and determination in the

not be possible
with a "realistic and

BANK OF BROOKLYN

SAVINGS
\

downtown

present.
*

world, it still

provided

Brookl"

Bank of

Enclosed

for

demonstration

power

simply

are

Savings

the

not enough
public or¬

for private groups and

ganizations to make a go of it.
The' gap between the cost of a
conventional plant and a nuclear
one may
still be too large to be

bridged by research and develop¬

alone.

assistance

ment

ICO Phase open Account
° new Savings

so,

means

doing.
V

AEC

not

for

faced

relation

tonium

its

this fact

the

has

reasons

own

except

original

Plu¬

'M*'

LjJ: In my

what needs

my name alone

0 Tn mv
□ in my
IrH\y
t'
I
I i-%

should face up to that reality and
find the

□ In

name in

OMr.

lieu

AEC

possible

the

date

not

checked-

cnecked=

—'

full

OMrs.'OMiss:

EXTRA DIVIDEND DAYS

Addres

Deposits made during the first
10 business

City, Zone No., State_

earn

days in July will
July 1st.

dividends from

But

"buy-back."

has

serious interest

assistance

s"« —

"buy-back" proposal. The
other

At h
name jointly with /
I

Joint Committee raised the ques¬
tion'

■

name in trust for
•
... mum ror
'

;

indicated

discussing

al¬

ternatives.

Capital

Subsidy

Private

MEMBER FEDERAL DEPOSIT

INSURANCE CORPORATION

Operators
As

means

of encouraging con¬

sideration of possible solutions to
our

dilemma, I would like to

sug¬

assistance
equitable

porportion as between private and
public organizations in a manner

process

j> As well

com¬

financial

AEC

without

prototypes

laborious

This in

lic Power formula.

going

necessarily

cost

simple terms is the Elk River,
Piqua (Ohio), and Nebraska Pub¬

plants which- private industry does
not want to build, some of us on
the Joint Committee also consider
it appropriate to authorize AEC
to construct first generation ex¬

perimental

reactor

the

parable fuel fired plant.

■

*3% regular plus '/»% extra

The Commercial and Financial Chronicle

(112)

Baskets Delect

though wholesalers and retailers
report excess inventories in automobiles and appliances. Trend in
bank loans points to lower level
than a year ago but improvement
in the last quarter.
No change is
anticipated in home construction,
but some increase is looked for in

Improvements

In the Second Half of This Year
Semi-annual national and

regional survey by bankers' group
outlook reveals generally optimistic view of

economic

improvement for the second half of 1958. While fast
is

trial

expected, bankers indicate better than ever ability to
take care of credit needs for active business period.

construction

Interest rates
tions

expected most manufacturing industries and
wholesale and retail firms. Some
lumber and some food product

unchanged for consumer
loans, slightly down for real es-

items are running at a higher
rate, but these inventories are
gradually beihg reduced. Arizona,

down,
in most classificabe

may

lower.

Nevada, and Utah report inventories normal to lower in manubusiness during the second half is facturing
and wholesale areas,

.<•

l' to

construction

to continue at its present rate, and
the trend is upward in public construction. Commercial and indus-

trend in interest rates is expected

Thursday, July 10, 1958

Real estate loans may be to be higher. Washington, Oregon,
slightly, but agricultural and Idaho report generally satiswill probably rise.
Resi- factory inventory positions in

loans
dential

commercial, industrial, and public
construction.
The
prospective

recovery

not

'/•

loans.
down

.,.

are

Dallas:

«00d

General

Agriculture

outlook

for

doing

with

well,

retailers'

inventories

stable

cautious

2VSSK& ASS SS SSZ&ZJUSSS&&SZ
tt"»—' °< MarssuBj®
oSti-

erallv

will

views

mistic

the

publicaof

lnan
loan

the

results

semi

survey

will
wni

ratp?
yiitpc

«,«•:

vuit

rniiaaeipnia.

annual

loans

mav

rates

but

ease

with

June
tion

Interest

oil

onlv siignuy .consumer loan rates
ory sliehtlv Consumer loan rwra

issued
issued

was
was

levcl

commercial

the

cipal
to

con¬

t^apiiai

have an

now

fnr

nrin

uuuook ior prin-

gooas

excess

poor

mausiries

capacity con-

ducted by the

Srondltton

Policy
Commission

of the Ameri¬

Bankers''

can

Association.
Bank

execu

tives

that

the

„

William

recovery

F.Kely

1
all

first

half

of
a

lowa

expects

to be

turers»

inventories

generally

are

than a year ag0> although
eqUipment, tire, and canning
companjes still have heavy inven-

1958

pro-

start toward

in the second half," the

survey summary ...
survey summary noted.

pected, except
decline

foi-

in real

Volume of commercial

and industrial

farm

rise

building is expected
moderately, and public

construction

will

probably

con-

tinue at present satisfactory
levels. Interest rates on commercial loans are softening, and real
estate loans are expected, to decline somewhat. Consumer and
'oan rates. are ex"

possible slight

favorable.

lower

Demand for

nearly normal.

estate

loan

rates.

multi-family

A slight increase in

decrease

and automobile loans is favorable,

expected

con-

increasing The forecast for one-to-four- sumer credit. Because of diversity
agricultural prosperity. Manuiac- family dwelling construction is of opinion, no trends'are evident
with

business,

UtHe

trirtai rnmmproial loans is exneeted

vided the basis for

automobjles

tories. Wholesalers' and[retailers'
rtianee^ is foreseen for overaR «>ventones are termed normal,
business mosnects
Inventories in cxceP1
automobiles and applimostances. ; Commercial loan demands
from la^ ve^and
considered are expected to rise seasonally in

Credit

"™a SKiPSE SgL—"

& in steel industry; Detroit sees consumer, personal, and real es- in commercial, real estate, peronly *a*r improvement in steel tate loans. The trend in appliance sonal, and agricultural loans, but
better

Herline
Hpplinp

industries varies from

teooa.

jSSuZS-'SSS njvr*

sajssu.'s's.'Kfsa smtruar&ASE Idaho some increase is expected
*aasa?«55.. Chicago predicts increased activ- increases, likely in commercial,

^ expected to be down.; f-ersonal pected to hold.

SS £

firmin

Siercial
!?XnTJinreal

consumer

wifll

rani

estate loan rates

public construction

is possible, but little change is expected in commercial and indusit added, "but even the doubters trial construction.
do not expect any serious worsenCleveland: Consensus is for a
ing
of
the
situation.
Banking moderate improvement in busiopinion definitely leans toward ness in the fall. A higher steel
the belief that the readjustments output is expected, along with inthat have already occurred have creasing
auto parts output and
paved the way for some improve- greater defense goods production,

St. Louis: The trend of bank
loans for the last half will snow a
continued backing and filling
when compared with present
l®veIs- ^he recession has been
slowed, if not halted, and an uptun? m economic activity is ex-

ment.

in Arizona, Nevada, and Utah. In

California some increase is expected in commercial, consumer,
real estate, and agricultural loans.

Residential conkruction in the
Northwest is running ahead of (as*
year, although commercial and
industrial: construction is down.
except in'.Portland and Seattle.,'

p"blia construction is running at
a

good rate. All types of construe-

half" Lumbering and food prod- struction is expected to increase,
ucts industries are lagging, al- Commercial, and industrial conthough the forest industry shows struction mup in San Diego, unsigns of improvement. Agricul- changed in Los Angeles, and down
ture appears to be in a strong m San Francisco. Public construcposition. In Arizona, Nevada, and tion in all areas of the state is
Utah the downturn shows signs expected to continue at a good
of leveling, and respondents are rac¬
cautiously optimistic. In CallInterest rates, district-wide, are
forma, business conditions are ex- expected to continue steady, alpected to improve in the second though some easing may be in
half. Agricultural income is likely prospect,

trend is expected in agriculture

''There

dwelling and
a

exceptions to
this moderately favorable view,"
some

are

but

"Extremely significant is the
prevailing view on one point—
the

that

remainder

either

over

and

the

year

will see
the be-

worst

leveling-off

ginning of

the

upward trend."

William v. iveiiy, President of
wimam
P. Kelly, rasiaent 01
the First Pennsylvania Banking
and Trust Comnanv of Philadelana
liust
company oiimuaaei-

improvement in machine

Pected.

Bank loans continue to

!°wer, but

^
fIf5!,^h
wholesalers are reported as not nonfarm home construction,
excessive and continuing to de- lJ ls
«ntn
the
Sinter
cline. Retailers' inventories are will continue until the winter
normal. The trend of bank loans
dtJh
tafte area_for the second_haReon- — "
— mnHerat^W lower other public buildings will conf

10 "e moderately lower
^ nresent level? nr increase
than the same period last year, tinue at present levels or increase,
n
multinle-familv dwelling Capital expenditures will be lower
phia, is Chairman of the ABA's ^ma"oi muiupie-xamiiy aweinng
*
n^riod last vear
Credit 1 oilcy *-ommission.
Poliev Commission
construction may rise moderately, tnan lor tne same perioa iast year.
d oublic construction is rising. Inventories are down slightly for
Excerpts from the summary of commercial and industrial con- manufacturers, wholesalers, and
the survey, by Federal Reserve
h?ucTion is likelv to dlcl ne Not retailers, except automobile dealDistrict, follows:
much
foreseen in inter- ers.
Interest rates will continue
Boston:
in

business

change^is^

slight pickup
activity is expected;
very

the

that

bottom

est rates generally, although presSUre

for

decline

loan rates is

I5e £e(fSS1*°/rn / \us about been
Manufacturers, whole-

Richmond:

consensus

saiers,

ana

retailers

SrAncA?

inventories

Minneapolis:

Majority

view

business outlook is
favorabie for the second

sperity is strongly influenced by
half than agriculture. Crops were good last

and tobacco year and prospects are good this

year,

with consequent adverse ef-

on railroads. Chemicals and
furniture manufacturing are down

«?rn

credit rates will

P P

New York: Sentiment
outlook

has

and in good condition.

activity remaining considerably below year-ago levels. The
decline

inven-

tones, especially manufacturers',
i3 expected: to continue at a more
moderate pace. Wholesalers' and
retailers
inventories are consid-

ered to be generally balanced and
at fairly manageable levels, with
the exception 6f those in automobiles and some other durables.
Total commercial loans are ex-

expected to imLittle change is expected

"In recent months

had

improve in western
decline in eastern.

Atlantan

?mfe

Generallv

business has

*sevlrel?^affected

b^aSse

deoendence

the
on

iri

thif

relativelv

heavv indus-

WhYat statef

h?girmingto har-

e ¥1rgest .crops
1}}stoYy ,at favorable prices, and
livestock prices are high. Retail

Z*S> °ne

dependence on neavy indus business is good. Inventories are
try* .-Consensus-is that the bottom reported still relatively high for

pected to increase slightly during
the second lialf. Consumer and has probably been reached, and a wholesalers but in fair balance
personal loans are expected to in— slow upturn is expected. Inven- fur retailers. IViost manufacturers

a^moderatelyi New York City-tories sales for the most balance extent°A sUghrdrereare is lfkSy
are 'reported 'in
banks
little change
real
with
part, al- in commercial and
see

es-

consumer

successfully protests N. Y.
brokers

relaying information

contracting parties

courtesy

number of security

firms have received

financial interest in the transaction and received

benefit

goodwill of the parties who had executed the trade.

"The matter

called to the attention of STANY and

was

result the

following Action Committee was appointed to take all
appropriate steps to obtain a more reasonable and realistic inter¬
pretation of the law.
<
Cyril Murphy (Chairman), John C. Legg & Co.
Stanley Dawson-Smith (Secretary), Cruttenden. Fodesta & Co.
Philip Chasin, Bank of North America
P. Fred Fox, P. F. Fox & Co.
Joseph Krasowich, Gregory & Sons
Thomas Larkin, Goodbody & Co.
John F. McLaughlin, President of STANY

Some up-

area,

other than the

crease is expected in one-to-four-

transfer tax bills from the New York State Department of Taxa¬
tion and Finance for 'give-ups'*, despite the fact that such firm

half.

part of
Interest
prove.
rates
on
consumer,
real estate
in
commercial
and
industrial mortgage, and agricultural loans
building, but slum clearance and will probably hold firm, but the
school and highway building is commercial loan rate may move
expected to improve the public down slightly,
construction picture. No change is
foreseen in consumer credit jri- '
^fasJ* Bankers call the
terest rates; but rates on commer- outlook for the second half .excial, real estate, and agricultural
' be^ause of the improved
loans are likely to decline.
agricultural and cattle situation,
construction

Committee

Text of memorandum issued by Stanley Dawson-Smith, Sec¬
retary of the Security Traders Association of New York's Action
Committee, announcing favorable tax ruling, follows:

George Rieber, NASD

■

Bernard Tompkins, Counsel, Tompkins & Lauren
Colonel Oliver Troster, Troster, Singer & Co.

in larger residential buildings.
a sli§ht increase, mostly seasonal, Public construction is expected to

the loans and real estate loans. Home

strength-

Action

to customers.

normai

late in the year. Consumer loans continue upward. Commercial and
may rise slightly, as will personal industrial construction is expected

ened, but the most that is anticipated is a gradual recovery, probably beginning later in the year,

recent marked

Manufacturers' and retailers' inventories are generally
in line with volume. Wholesalers'
inventories are tending toward
reasonable relationship with sales,
Commercial loan trends point to

Ruling on Non-Tax
"Give-Ups" by Dealers

of offer and acceptance to

family dwelling construction and

^rnnprfipc

decrease^Sitly

business

the second

stable-

nrnhnhlv

Sp«;

expected" in

State stock transfer tax levied

turn is expected in commercial,
consumer, personal, real estate,
and agricultural loans. Modest in-

levels,
rvi,
remain1^abkT

Will

Inventories are considered

!iC ?n slightly.

T»vfIvYYr iSY

Liability
Association's

mining is having an ^Unfavorable 65% of 1957 capacity, some upturn
■

will

outlook

! ^ f^ *lri lects

Business

is in this area is good, as its pros-

classifications ot processing are on the increase and year. While the mining industry
1S„ii apP l~ agriculture is improving. Coal is expected to operate at 60 to

nSPJfc

„

STANY Obtains Favorable

at Present levels or move slightly
lower.

likely.

.mo,Test in" in the first. Cotton

commercial

seasonal up-

tool business is likely. Inventory
levels
for
manufacturers
and

"It

should

was

determined at the preliminary meeting that this matter
fought through the courts if necessary, and Senator

Bernard

Tompkins, of the firm of Tompkins & Lauren, counsel
STANY, was engaged as attorney. The members of the Com¬
mittee volunteered to raise the funds which might be necessary

for

for the

proceedings to follow. It was agreed, however, that the
obtain a formal ruling from the Department

first step would be to

before resorting to court litigation, and several meetings were held
with the General Counsel and other representatives of the Depart¬
ment of Taxation and Finance at which the

the industry's

"As

arguments to support

position were submitted.

result of

our

action,

we are

pleased to announce that

issued a favorable formal ruling reversing
previous position. A copy of that ruling is forwarded herewith
information. It is suggested that the appropriate persons
your firm be made familiar with this official interpretation
the non-liability, for taxes in the matter of 'give-ups.'

the Department has
its

for your
in
on

"STANY is pleased to submit this information to you as
another instance ,of its initiative and leadership in the industry.
"THE ACTION COMMITTEE

"Stanley Dawson-Smith, Secretary".♦Term

used

where

firm

acts

solely

actually effected by two other firms.

intermediary In

transaction

Volume

188

Number 5758

The Commercial and Financial Chronicle

(113)

nancing requirements for the
transition

THE MARKET... AND YOU

the

the red

Mnrftharn Qlolae Dniiftir
nurinern OI9I6S rwWBl

jet service. In
United, it ran into
by a small amount in
of

40/ DamJ*
/O DOnQS
Public

Minneapolis and St. Paul, west
central

„

continued

first

UTT616O

offering

Wisconsin,, and

o£

parts

North and South Dakota. Consolidated
in 1957 totaled
revenues

$30,000,000
quarter, only on? Northern
States
Power
Co:,
month of which represented
(Minn.) 4% first mortgage bonds
operations with the higher due July 1, 1988 was made yesterwhich fares and considerable im- da^ (July 9) by an underwriting
the

By WALLACE STREETE

Stocks

case

$21,162,000. The ratio of theyear's
t0 fiXed chargeS W3S
7*68*

to forge target area of 485-90
i
high territory for was! about all -that was ex* provement is expected for the
llnner &
G. F. AllfrferHar With
the year but
bumped into a pected of the market gener- June quarter reflecting the p e a bo d y &" C o., "and' White" WeTd
bit of difficulty "When the in11 "
°
^
~
.
.
ally'until there is more evi- increase. Some estimates are & Co. The bonds are priced -at
Goldman, Sachs & Go.
dustrial
that
a
average ran into the dence
spirited fall that even without a new in-- 100%; plus accrued interest. The
Charles F. Aufderhar is now
481-83 area.
recovery in business is in the crease the present level would
July 8 . bid associated with Goldman, Sachs &
cards.
enable the line to jump earn/o *°r me lssue"
r Co., 20 Broad Street, New York

into

new

Smith^K^dSr

The
more

temporary setback
less inevitable

was

after

this particular barometer had
carved out eight advances in
a

And,

row.

was

far at least, it

restrained

traders

First

setback

will

and

jn(fn
&

for

much

r»r

moreover. And sum¬
slowdowns ere a current

n;ic

rimmiiiniiPil

•'

Championed
Oils, while they have
sionol

troubles

occa-

im Other

Part of the net proceeds from City, members of the New York
the sale of the bonds will be used Stock Exchange, as a member of
by Northern

States Power to

the

re-

sales

department.

fund $18,000,000 principal amount1- Mr. Aufderhar, formerly with
of, outstanding 5% first mortgage the Savings Banks Trust Company

nleasant
1
'

reading,

chirn

reported last

shortly year.
»

4 1

reports over the $1.41

generally aren't expected

mer

took

*
.

earnings
full flood

make

...

halt

■aKmStSlhave asStrident

bonds due Aug. X, 1987. The bal- for 25 years, and .served as an
ance of the proceeds will be added officer of that organization's into £eneral funds-of thecompany-vestment department.
He is a
and tused. in ^ction with its Past President of The Municipal
construction

profits without
feature of industrial activity Uivisrons, Still nave as siriaciu
program.
Forum of the City of New York
any urgent selling
showing
so the basic
The bonds will be redeemable a"d
ingredients aren't ? ^roup of champions followj? currently a member of the
up. For the rails, which had
as a^y other Jnajoi at thg option of the company at ^^d. ^ Giant^^seLli Club11
been a bit laggard as the in¬ those that call for any market ln^
Tf
group. Currently the sport is any time at-vprices ranging from Francisco Giants Baseball Club.
dustrials moved to the
.7
'
highs
in culling out those that have 104% to 100%. They also will be
for the year, the pause in the
.v,

PYf)pQ(:p<.
a

senior section

for them to

the

was

signal

studwte^r concur° thTtarthc

and

hence

eouallv sham

•

than late next
,

Snag im the Low-Priced

items

the

that

low-priced

have

been

prominent recently

and

carried

levels

were

early

vulnerable
en¬

There

the

some

market

rails

neak

didn't

that

join in

back that

was more

bit reaction¬

units

■

•+

its

BOSTON, Mas,
Veader

has

been

- Francis X.
added to the

staff °£ Keller & Co"

services, Principally electiic-

otreet.

ity, in central and southern Mm-

nreviouslv

was

previously

re-

placed

and

Commercial State Bank

stream until late last year

weren't

enthusiastically in their turn the remodernization of its
notably Servel w h i c h at bat, particularly since California
refinery was cornclipped back hard by a there are cases where the
pleted only recently, both of
bit of pressure when some un¬
market prices by various which could
help bolster
explained snag developed in yardsticks were definitely at Tidewater's future results,
its merger
discussions with bargain levels.
*
*
*
Hydril Co., a West Coast oil
drilling equipment company.
Interesting Kail
Another facet peculiar to
Tidewater is its tieup with
Servel
currently is a corIllinois Central, which was others in the so-called
Getty
porate "shell" consisting
quick to pare its dividends group where hopes persist
mostly of the cash it received when
earnings started to fall that amalgamation is due in
after sale of its assets.

and

Trust

ary,

Company of New York

was

formerly Modern Industrial Bank
STATEMENT

nevertheless

has

offered

time with all the benefits of

yield recently that ap- simplified structure and re¬
Similarly there was a proached 6% on a dividend sultant economies, plus the
spirited runup in Foster already halved and believed attraction of a single, new oil
Wheeler

and

sudden

col¬

as,

mergers were

confirmed and payout

first,

quickly bumped into

a snag.

alternated

Illinois

o n

rails

to much deci-

Reichhold

v e.

something of
a
sensation in its persistent
runup, was given to running
higher and bumping into
heavy profit-taking even
within
single sessions that
turned
it
definitely erratic

hobbling

the

good

share in

market

when

several

large blocks of the
Standards of Jersey and Cali¬
fornia and of Socony came out
as
secondary offerings. The
group retreated cautiously in
advance

after
to

the

but

took

conservative

dividend

one

new

heart

blocks, ranging

quarter million shares of

tion

and

year

to $5.06

came

the

was

speedily cut back first to

$2 basis, half of its $4 rate
earlier.

operating company affiliated

previous with

payment

This

rather

Getty.

The

Getty

ex-

were

placed speedily.

over.

fact

are increase

and

offer bad to be .^tended.

tlme> however, it is felt that

increase

interest

the

granted ^
is

served to

year

0f such in-

tistical discounts
interim

has been

another

sible this
vive

that

pos-

re-

airlines

trials

brought it close to the ready have

•■».

•

and some, like United Air, al-

set

their fi-

1,226,563.03

Acceptances

Furniture, Fixtures and Improvements

757,911.42

Other

216,393.01

Assets

$120,630,229.79

LIABILITIES

$108,473,796.03

Deposits

1,073,572.53

Unearned Discount

Liability for Letters of Credit
and Acceptances

$1,229,787.53

Less: Own Acceptances

1,226,563.03

3,224.50

in Portfolio

522,744.71

„

terconnected h
The

points in the indus¬

Letters

845,232.98

Capital Funds:

2,276,725.00

Capital Stock
Income Debentures

3,750,000.00

coincide

8,488,320.51

508,000.00
~

applies to the

with

those

Offices

stock

time

Undivided Profits.. 1,953,595.51
Reserves

$120,630,229.79
n

anatyst to pinpoint whether
the discount

Surplus and

difficult for

1 d i

g s.

which have been

Customer's Liability for

Other Liabilities

despite projec- all the units can be consoliearnings this year dated under favorable terms
that would cover the $2 rate
to wipe out the various stathan twice

281,635.02

Accrued Interest Receivable

accepted by investors and the

Increased Caution

some

58,323,594.47

Loans and Discounts

Reserve for Taxes and Interest

7,422,169.48

Other Bonds and Securities

of Credit and

15,007,319.40

37,394,643.96

U. S. Government Securities.........

drastic trim is
tions

Hand and Due from Banks....

change hasn't been very well

holdings, the operating
anything but efficiency or to the proven reprominent in investment in- serves of a unit enmeshed in
There was a bit more cau¬ terest for some time. Kegulation around, mostly because
tory authorities have become tile web.
the market's good action more liberal in their appraisal
[The views expressed in this
through June in tacking on of the needs of the airlines article do not necessarily at any
Jersey,

by offering to exchange

ings last year
against $7.66

RESOURCES
Cash

by Getty Oil which already
simplifica-

payout Getty stock for that of Misnoted, sion. Also involved in the

source

CONDITION

has moved toward

$76 in the decade to somewhat
complicated struclast year while paying out
,,
th
only $20.25 to holders. Earn- ture ls bkelly UU' f™1'

in effect
a

been

mostly

earned

ent

had

has

$3 rate and then to the pres-

times than not.

Oils

its

Chemicals, and,

which has been

ment is

holding corn1958 pany for Tidewater stock and
is, in turn, nearly half owned

projected

Central

of the

one

50%

earnings.

didn't
s

since, it colossus. Mission Develop-

than

strength and easiness which
add

less

represents

Chemicals

rumor

bottom

the

lapse in Fluor

June 30, 1958

state
with

wnn

drastic nesota> including the cities of Wall Street Planning Corporation.

eastern

new

(special to the financial chronicle)

integrated

finery

Power and its
Northeiri States Fower*

inlot-

companies. In the company s
favor is the fact that the last

disappointcircles

its for the first quarter, a set-

£ban b)r

affair.

was

ment

has

summer

by the speculative

thusiasm

was

had

been

month,

cenf Tears'VaTvear's

Section

Some

" is*-

is'possible.

nrohahlv "will
'abound
One such
posting of 1958 but without probably will be reached
Tidewater which iust esearly m the season rather
any fanfare to it.
caned aTed ink entry
.

Keller Co. Adds

sinkins fund

,lad sharP earnings squeezes

to their best

move

the

«ChronicleThey are presented
as those of the author only.]

MANHATTAN
116 Fifth Avenue • 1400

528 Broadway •

Broadway
318 Grand Street

BRONX

352 East 149th Street
BROOKLYN

1574 Pitkin Avenue *815 Broadway
781 Eastern

Parkway

QUEENS
99-01 Queens Boulevard
Member Federal Deposit Insurance

Corporation

■'

By GEORGE S.

of which we are a
in several ways
from
the
accepted pattern for
American industry. For example,
differs

although we

constantly

are

competing
other

iu, i»oo

xnuisuay, uuiy

This

believe

today.

fields we can find,

some

indus¬

what the customer will accept.

ried

out

today in this

being financed on a

too

in detailed manufactur¬

cost cuts

ing

heavily
as

areas

often true in

the usual industrial case.

extreme flexibility.
know, next year we
need to use an entirely dif¬

processes

all

For

Rather,

tools and

concentrate in

must

may

metal

ferent

obtain

the

best

The factors that make

our

charity basis.

profit

are similar to the ones
in the habit of consider¬
ing, but the balance and emphasis

you

are

profoundly different.

not

the

much

little

operation

ingly
forts

able

make

unprofitable
that

our

efficiencies
as

will

profit

today's

the

seem¬

advanced

lead

our

ef¬

being

produce the world's best

of research called

form

search.

This

ested

why

basic

and

the

are

fu¬

inter¬

applied

re¬

search.
•An address
Annual

this

effort

basic

the

re¬

objec¬

by Mr. Trimble before the
Group Conference

California

Investment Bankers

Association of Amer-

ica, Santa Barbara, Calif., June 30, 1958.

well

source

materials

those

recently inaugurated

simple

Although

reason.

are

identified with the aircraft indus¬

years ago

for

would

"Most

Techonology Industry."

aircraft

were

the most ad¬

man-made

vanced
were

a more

business

our

Advanced

When

discovered
many
accurate title

that

devices,

in the aircraft business. Now

are

the

missile, electronic,

servo-mechanism

business.

and

don't

nuclear
know

what

business we'll be in ten years from

but we do know that it will
have the .characteristics of being

now,

"most

that

advanced."
invest

can

Therefore,

basic

increaes

research
our

knowl¬

vastly in those fields that
might form the base of our busi¬
ness in the years ahead.
edge

Need for Research Subsidiary
_•

stock

national

piled

matics

tool

scientist

the

Lenox

be de¬

theory

ample,

the

number
before

ex¬

The

alternating electric
being studied, this
mathematical
tool
was
applied.
currents

whose

use, so

going to come alive before
originally contemplated. RIAS
will then become a good business
venture ahead
of schedule,
and
other similar organizations may be

haps
we

formed.

Without it

electrical
have

our

discuss

some

of the

things being done at RIAS which
have a relationship to the con¬
quest of space. I shall only men¬
tion a few that are directly applic¬
able although our ignorance on
this subject is so great that almost
all knowledge will be useful.

rapid advances in
could
not

machinery

forward. We hope to
develop equally important math¬
ematical tools in our group to help
solve
the
complex problems of
outer space.
It is interesting to
contemplate that the USSR has an
institute for the study of mathe¬
gone

For

Sought

Sale

The first program is a study of

gravities. Gravity is the force that

The

examines campaigns

group

Council and de¬

proposed to the
whether

cides

they

not

genuinely in the broadest
interest.
Every
proposed

are

public
cam¬

paign, except those requested to
implement an Act of Congress,

by three-

approved

must

majority of the Commit¬
before it can be accepted by

fourths

matics and that excellent work in

tee

differeiitial

the Council.

equations

coming

of there.

out

Another

group

interest

RIAS, in terms of space research,

Mutual Fund Formed

is the bio-chemists. These men are

By Keller Bros. Sees.

the natural process of
photo-synthesis. By this method,
BOSTON, Mass.—Formation of
a
plant
is
able
to
synthesize
Mutual Securities Fund of Bos¬
starches and proteins from COo,
ton, a new open-end investment
water and sunlight. A bv-product
is oxygen. But for this process we company, was announced by Kel¬
ler Brothers Securities Co., Inc.,
humans would never have existed.
Zero Court Street. Keller will act
The problem is being studied from
as general distributors of the new
several approaches and it is to be
fund whose initial offering price
that if
able
studying

hoped

to un¬

are

derstand the process, we

will some
day be able to duplicate it.
In
other words, we may be able to
syrithesize foods just as we have
learned to synthesize fibers such
as rayon and nylon.
Even now we;
are
able to make oxygen using
algae and artificial light from wa¬
ter

the

and

haled by
pears

other

carbon

dioxide

ex¬

humans. This process ap¬

to be more efficient than any
for

extended

for even short trips are
prohibitively large. They must be
produced during the trip from ex¬
tremely simple substances. Put in
other
terms, we must learn to
make fuel for our space travelers
quired

along

taking

victory

garden.
Other

programs

significance

have
research.

RIAS

space

These include the study of

cosmic

solid state physics, nuclear
particle physics and materials re¬

raws,

sincerely believe that the
idea of using the free enterprise
system
tive.

Mutual
stock

Securities is a common

fund which

will emphasize

growth of principal
of the

Trustees

and income.

new

fund, are:

-N. Friedlander, Boston
industrialist; General Michael J.
George

Galvin,

former

Under

Secretary

consultant to the
of Defense;
Charles F. J. Harrington, former
Massachusetts
Commissioner of

Labor

Assistant

and

Secretary

Insurance; Dr. John C. Johnson,
Professor of Physics at Worcester

Polytechnic Institute; and
N.

Norton

Keller,
President of Keller
Securities Co., Inc.

Brothers

Two With

Melvin Gordon

(Special to The Financial

Chronicle)

BOSTON, Mass. — Franklin W.
Holgate and Chesley A. Layne
have become connected with Mel¬
vin
Gordon Company,
10 Pines
Road. Mr. Holgate was formerly
with

Palmer, Pollacchi

& Co.

With Hornblower &
(Special to The Financial

Mass.

BOSTON,

search.

basic

$10.64 per share.

Weeks

Discusses Knowledge

labor, international affairs,
public opinion, medicine and so¬
cial work.
.
<

ness,

were

without
now

of the

Hospital.
18 Public Policy Commit¬
Hill

supplying oxygen over
periods of time.
The
no risk.
In recent months the peo¬ significance of this knowledge be¬
comes
apparent when we note
ple and hence the Government
that for space travel to be achieved
have seen the shortage of knowl¬
we must supply the men with food
edge that comes from lack of basic
and oxygen.
The quantities re¬
research and our customer is per¬

I shall

and Chairman

of Trustees

Board

tee

when

Later

knowledge that
it should be
possible to do this with essentially
a

Committee

execu¬

American

the

was

heard of any

did not have

committee

the

member

administrative and

the

members serving under the
complex Chairmanship of Paul G. Hoffman
developed many years are distinguished leaders in such
use for it was apparent.
diverse fields as education, busi¬

veloped

To accomplish this, We formed
three years agO a wholly Owned

Philanthropic Societies, a

important effort. Mathe¬

like all tools, must
in advance.
As

and,

In fact, I have

resource.

tion of Jewish

Jewish

this very

Benj. J. Buttenwieser

Federa¬

the

try and abroad are joining us for

never

acquire

tive

in the event
Knowledge can
and considered a

might dry

in this form of research for a very

Germany, and
is a Trustee of

We have

center for

for.

missioner

study of differential equations.

the

Com¬

High

Some of the best men in this coun¬

of any emergency.

Assistant

in which RIAS

area

the field of mathematics.

Instead, our Gov¬

knowledge. in
some
particular field of interest.
My company is deeply interested

tive

must

performing machines
ture.

The second

Butten¬

Mr.

wieser is Past

learn some new things about
theory and hence gravitation

is becoming increasingly active

us,

business,
oper¬

hence return

and

success

Refining

Company.

which is involved.

country is

is,

chromium metal.

try, and are the oldest one in the

performance.
ation

That

the

Vanguard represents an ernment, in accordance with the
things,
it
needs
of the country, buys the
to concen¬ applied and development research
fractional project. There is a more abstract military equipment we need as

would be foolish for us

Buttenwieser

day we should

system of free enterprise?
Most basic research being car¬

base for the future.
To

these

In the meantime we have Ein¬

able to market

the funds available are
tries, our real
take-off weight as any rocket now
rarely a function of what work
competitor is
considered operational and several
needs to be done or the past per¬
Russia.
We
that have not yet reached final
formance of the researchers. More¬
cannot obtain
test phases.
In fact, most of the
over, this country is turning out
samples of his
latest vehicles of high performance
many good scientific men who can
products to
still to be tested are using Van¬
find no place to work in basic re¬
analyze and
guard techniques and in several search. Although our universities
hence must
instances,
actual major compo¬ are
doing most of the basic re¬
assume that
nents and assemblies. Poor little
search, they certainly cannot ab¬
G. S. Trimble, Jr.
they are as
sophis ticated,
temperamental, sorb all of their own outstanding
good or better
cranky (to use some terms from men. It seemed to us that one way
than ours.
This places extreme the press) Vanguard happens to
to get more basic research work
emphasis on the performance and be the first of the high per¬
suitability of our products.
We formance rockets of the future. accomplished would be to employ
the method that has done so much
cannot afford to compromise our What we have learned and will
to give us the highest materialistic
design for any reason whatever, continue to learn as we fire more
standard of living in the world—
if such action might make our of them will result in higher per¬
competitive free enterprise. Cer¬
machine less than the best in the
formance, more
reliability, and
tainly this method, which we know
world. We cannot afford to build
cheaper rockets no matter who how to
use, should be able to in¬
a
pretty
good
intercontinental builds them.
crease our intellectual standard of
ballistic missile. It has to be the
It is rather unfortunate that the living — tthat
is,
increase our
best.
Perhaps you can see from
American public were permitted
knowledge.
this why it is so difficult for a
to believe that Vanguard would
company like ours to mix mili¬
It's a Profit Making Activity
be as reliable as ypur watch or
tary and commercial products.
the Golden Gate Bridge; I suppose
RIAS is a profit making cor¬
Similarly, you can see that we it couldn't be
helped, but the im¬ poration for this reason, and the
must embrace change in our in¬
portant point to us is that through product we are selling is knowl¬
dustry. We must constantly strive
Vanguard we have learned how edge.
The one thing missing in
to change our product to obtain
to design, manufacture and oper¬ this industrial picture is a cus¬
improved
performance
as
we ate a rocket of extremely high
tomer. More accurately stated, our
learn more from our research ef¬
performance. This is an asset of customer does not know he exists,
forts.
Such a philosophy is for¬
great magnitude and it will show or at least he didn't until Sputnik
eign to the idea of mass produc¬
up in Titan, the intercontinental
went up.
It is unlikely that any
tion of a standardized machine.
ballistic missile we are develop¬ individuals will buy knowledge
As soon as an idea for improve¬
ing for the Air force in our Den¬ for
themselves
alone,
although
ment has been developed to the
ver facility.
perhaps a few large corporations
point of probable success, we must
This explains why folks in our might.
Fortunately, our country
incorporate it in the product. We
industry will undertake seeming¬ is familiar with this problem and
cannot shelve it and wait to see
ly unprofitable ventures requiring has a solution.
what the competition will do on
years of effort from their most
We do not expect individuals to
next year's model.
Nor can we
talented people. They are building
buy battleships or to stockpile
conduct market surveys to see

trate

may

De¬

implications
to
the contrary, .Vanguard will
place five to ten times as much
weight into orbit per pound of

one

Elects
expect stein's theories and much to un¬
knowledge. derstand here. At RIAS we are
The
Public
Policy Committee
The output or product of RIAS now conducting a time dialation of The
Advertising Council has
is expected to be an end in itself experiment. Einstein's theory says
elected Benjamin J. Buttenwieser,
rather than just a source of in¬ that if two clocks move rapidly
partner, Kuhn, Loeb and Com*
formation for future business in with relation to each other and are
p a n y,
to fill
the manufacturing field.
Such a previously determined to keep the
place
of
concept is revolutionary, but it time at the same rate, then an the late
Roger
has been clear to us for a long¬ observer at one clock will note
W.
Straus,
time that the United States is not that the two clocks no longer are
former Chair¬
producing its fair share of funda¬ synchronized once there is a large
man, Ameri¬
mental knowledge in the world, relative velocity between
them. can Smelting
and it has been equally clear that This
has
been
checked
experi¬ &
then

are

world

the

occur,

only one.

program

the

Advertising Council

most advanced

Hope in Vanguard

why we

undertake

rocket

members of

Because

brute force approach is the

if the

for

For

people of our
country and our government must
develop a real interest in the ac¬
quisition of knowledge on a long
term basis.
Let us hope that the
this

We have no reason to challenge of the space era, brought
way or the other.
It home to us so forcibly by .the
launching of Sputnik, will turn the
seems that an entirely new theory
\
of physics may be needed to ac¬ trick.
a
real understanding of
one
we
can
imagine since it is quire
abstract rather than real.
If our gravity, and at RIAS we are work¬
ing in this theoretical area.
company intends to deal in the

spite all reports and

well

other

■

tions like RIAS to be formed.

willing to a new approach to producing
mentally and found to be true.
such as knowledge is needed that will
RIAS is repeating the experiment
Vanguard. We are building a base work within the social and econwith much greater accuracy; and
for our future.
In my opinion, nomic habits of the USA. What
as the experiment is expanded we
Vanguard is the most advanced better way than to employ the

each

with

Great

Places

gravity to determine

about

We believe that

RIAS.

creating

firm's
fundamental knowl¬
edge which involved employment of free enterprise to basic
research in setting up a wholly owned profit-making sub¬
sidiary, R. E. A. S., with basic research as its sole end and
knowledge obtained as its saleable product. Mr. Trimble ex¬
plains why the unique perfection-goals of air plane, missile,
electronic, servo-mechanism and nuclear business requires
emphasis on seemingly unprofitable advanced efforts that lead
to producing the world's best machines and, hence, need for
basic research, to help make operations a profitable success.

member

„

another; reason

knowledge, per se, should be a
salable commodity. Such a prod¬
uct would be the most advanced

revolutionary solution to deficiencies in

ing but produce a brute force to
overcome gravity.
We must learn

Advanced

;

had

directs attention to his

The industry

for

noth¬

Our huge rockets do

Study.

the most advanced

Institute

Research

TRIMBLE*

the Vanguard

Martin official describes

y^in uiiiism

r niui iciui

this planet or to any

other.

which stands for

It is called RIAS

Vice-President, The Martin Company

rocket in the world today, and

holds

subsidiary corporation having
basic research as its sole objective.

Space Flight and Science in
The Most Advanced Industry

unu

k^uiiuuvi ciui

/te

(114)

the output of
prove effec¬
more organiza-

to increase

research
We

will

expect

Magnuson

Chronicle)

—

Leslie

is now affiliated with
75 Federal

Hornblower & Weeks,
Street.

was

previously with
Corporation of

Investors Planning
New

England.

Volume

183

Number. 575,8

The Commercial and Financial Chronicle

(115)

compromise and renewal

Solving Strike Thieats and
Shortening the Recession

show

Carloadings Forecast
The

National

Forecast

the

Shippers Regional

Boards

the

;

134% in freight traffic under a year ago. This is not
drop as experienced in the first half of the year.

Third

Quarter

this

indicates

year

Reflecting the drop in steel
-

production

and concentrates will be off 35.8%

ore

nationwide

it is

large

estimated

that

from the like 1957 quarter.

Iron and steel shipments are expected to drop 26.9%.

Ever
the

The

fdecline

forecast

Great Lakes

for

the

Secretary

Another

major industry also is looked to drop sharply. Auto¬
mobiles and trucks are placed at 28.2% under a year ago and
vehicle parts are anticipated to be down 21.1% from the like
period of last year.
yv

since

World

War

followed

Labor,

labor

have

for

the

:
.

hand

the

Trans-Missouri-Kansas

looks

Board

had

an increase of 25% in agricultural imple¬
vehicles, other than automobiles.

ments and

other

gain of 0.7%, with

Supplemental
are

forecast to show

such
-

beans

phosphate

items

are

the general list.

and

rock

expected

show

are

placed

wines

up;

under

7.9%

and

ysis

ago.

year

1.7%;

and

containers up 2%.
General

gains throughout the country are 'set for grain;
potatoes; fresh vegetables; poultry and dairy products; salt; cement;
and frozen foods, fruits and vegetables.

From the indicated
-

figures, it would

serving heavy industry such

that the railroads

appear

steel, automobiles, iron ore and
coal probably will make the poorest showing earnings-wise in the
third quarter of this year. Earnings of the agricultural carriers
and particularly grain are expected to be well maintained.
Some
of the railroads serving the Pacific Coast might actually record
improvement over those of a year ago.

Roger W. Babson

that

Labor

made

the

months'

1958

-295,595

* After debenture

;

Illinois Central—

•

Five
Net

months'
income

income

1,301,441

months'

$105,873,727
4,421,130

gross——.-———

———

Missouri Pacific—Vv
Five

interest.
,

$121,891,019
6,176,763
%

$117,114,455..
Net loss after capital and sinking funds c
.444,937
*

Profit.

gross—-

——.

sinking fund
demption price is 100%.
The

Mead

1930,

paper

Karriman Ripley Group
An

investment

banking

group

,headed by Drexel & Co. and Harriman Ripley & Co., Inc., yester¬

(July 9) offered a new issue
$25,000,000 of The Mead Corp.
4%
debentures
at
a
price
of
day

99.125% to yield 4.056 % to matur¬

ity.
Out

net

the

proceeds

from

$17,065,400 will be used to
(retire $16,820,000 principal amount
of outstanding debt of the corpoTation and a subsidiary. The bal¬
ance will be available for general
sale,

corporate

use

of", the

founder

movement

the

Gompers, was also

The

new

deemable

debentures

one

Corp.,

incorporated

is the outgrowth of a
manufacturing
business
in

1846.

On the basis of

the corporation is
of the ten largest paper and

tonnage

sold,

companies

paperboard

the

United States.
For

are

re¬

other than for sinking

the

weeks

ended

April

sales of $72,704,000 and net earn¬

$3,035,000. For the
16
weeks ended April 21, 1957, net
sales
were
$62,487,000 and net
earnings $3,681,000. For the 52
weeks to Dec. 29, 1957, net sales
were $208,124,000 and net earnings
$11,930,000.

retire 82,5 %

& Co.

Admits Partners

Mr. Le(es has been with the
of the
debentures prior to maturity. The firm for many years in the Cor¬
corporation
may
increase
the porate Syndicate Department; Mr.
sinking fund in any year by not Carrington is in the Municipal
more than the required payment
Bond Trading Department.

vs.

labor
in

leaders
,

telling

were

the

instructors

nomic

and

This

Mr.

renewal

present terms. It may
employers to de¬
mand a cut in wages or fringes,
but this should be only to effect
on

confi¬
colleges.

Customers
Accrued

yAmmm

m*.

Other

Liability a/c Acceptances

Income

7,200.00

Receivable

'887,037.15
381,475.19

$236,834,229.57

Hmm;a s.
%

'' V'V

;

Liabilities

their

Deposits

$102,472,749.41

Demand

108,808,463.78
5,522,189.26
1,295,867.20
1,117,727.19

Time
tm

Government

Reserve for Unearned Income
Reserve for Interest, Taxes, etc
Reserve for Loans and Discounts

2,008,883.76

......

Acceptances Executed for

a/c

7,200.00

Customers

Capital

account
Capital Stock

Common

(200,000 shares
Surplus
Undivided

TOTAL

union

$25

par)
•

Profits

5,000,000.00
7,000,000.00
3,601,148.97

LIABILITIES

$236,834,229.57

mem¬

own

nests.

RAYMOND PETERSON
Chairman

of the Board

BENJAMIN P.

RIAL

President

This has.

NATIONAL BANK
AND

TRUST

COMPANY

PATERSON

timid step to stop
17

PATERSON, BLOOMINGDALf,

LAKES, PREAKNESS, RINGW00D,

BOROUGH of TOTOWA,

the U.

thinks

...

'i /I
ill
WMMm

if
fof/S.W/'Y/W/S/SS.

can

Yet this is a lime when a Senator

Congressman

Handy Offices throughout Passaic County Jn

CLIFTON, MOUNTAIN VIEW, P0MPT0N

especially unfortunate,
time when, Russia has.
S. .into a business
recession which employers as well
as wageworkers are now suffering.
or

536,160.27

TOTAL ASSETS

such graft. He had been succeed¬
ing until the Sherman Adams
episode nearly wrecked Kennedy's

This

2,603,483.58

;

Assets

instruc¬

in Congress

coming at

360,000.00

Banking Houses

making in-;
vestigations /of* both large and
small
graft. ' Senator Kennedy's

thrown

10,513,484.26

18,105,907.20

Mortgages

labor leaders were
provide "feather-

their

good intentions.

23,301,065.32

Federal Reserve Bank Stock

has so successfully been
done by the leaders of railroad
unions, but too many of them did

Mortgages

Furniture and Fixtures

stu¬

labor

214,000.00

Guaranteed

Other First

bill has been

■

17,105,619.10
645,250.58
2,222,795.38
36,102,902.06

F. H. A. Insured

V. A.

Being Investigated

weather their

■

57,044,988.53
32,053,538.00

Loans and Discounts

plum would go to others.
These
plums were worth from
$10,000 to $25,000 per year. This
is the situation at present.

for

with

$34,749,322.95

Municipal Bonds

Real Estate

they would not be re-elected and

resulted

and

Loans, Secured
Demand Loans, Unsecured
Time Loans, Secured

the.

bers,

formerly

was

Assets

lost

shorter hours every year,

Compton

Crowell, Weedon & Co.'

Demand

get their positions.

many

Co., 210 West Seventh Street. Mr.

result, the labor leaders were'
compelled to win higher wages

content

con¬

Dempsey-Tegeler

un¬

Moreover, these labor
leaders- were under attack from
other
ambitious
workers
who

Finally,

Law-'

decreased.

Labor

with

were

increased

—

■i

respect for preachers and teachers

and

ANGELES, Calif.

Compton has become

nected

be necessary for

for their wageworkers
for fewer hours of work. Hence,
the wageworkers' respect for la¬

LOS
rence

pay

strove

Dempsey-Tegeler

Other Bonds and Securities

such

with

(Special to The Financial Chronicle)

preachers

meantime,
the
labor
were
constantly getting

leaders

research.

formerly

was

Cash and Due from Banks

the

bor

Exchange,
Murphy

of institutional

Murphy

With

that, as wage con¬
for renewal, labor
leaders should unanimously urge

often lost their jobs.

Stock

Daniel R.

the New York Life Insurance Co.

means

come

State

defended

strikes,

York

that

associated with the firm in

now

charge

increases.

tracts

Furthermore, if too many
that their eco¬

unions

New

announce

willingly accept less profits, and
wageworkers to ask now for

mentioned

boys

Josephthal

for

union

their

for manufacturers and retailers to

They were told that Protestant
theological schools and most col¬
leges were endowed and supported
by employers and the "capitalists,"
so-called. Hence, they did not lis¬
ten to what these preachers and
teachers

Company."

U. S. Government Bonds

and

Com¬

& Co., 120 Broad¬
New York City, members of

way,

getting old prejudices and accept¬
ing the fundamental laws of sound
impartial economics.
These call

Preachers and

churches

Investment

Josephthal

threatened

partieslabbr leaders, em¬
ployers,
and
etm'sumers — for¬

S.,
friend of mine.

Russell

Boston Building. M. Stand¬
formerly conducted his own

1919.

friendly to labor demands.

beds"

Ira Ha up!

purposes at 104Vs% to and
Ira Haupt & Co., Ill Broadway,
including June 30, 1963 and at
lower prices thereafter except that New York City, members of the
the corporation may not, prior to New York Stock
Exchange, as of
July 1, 1963, exercise its option to June
10 th,
are
admitting
Ira
redeem any debentures from bor¬
Haupt II, Leon S. Lees, Jr., and
rowed funds having an interest
William
G.
Carrington Jr.,
to
cost of less than 4.14% per annum.
partnership in the firm; Mr. Haupt
The indenture provides for a will acquire a membership in the
.linking fund commencing in 1964 New York Stock Exchange.

the

H iiil
Samuel
II

days, most
college professors

and

not

fund

sufficient

of J

20, 1958, the corporation had net
ings

Cabi¬

labor

those

leaders
re¬

capital

including

improvements.
\

founded

and

Rolland D.

become [associated

Allen Investment

all

sss

The

In
for the year. The

problems and shortening of
the present recession depend upon

W''

tors

friend

Brentaiio's

dents.

■

$125,102,278
*1,476,689

Mead Corp Debentures
Offered By Drexei-

was

published by

dence

$35,787,515

; Net income
%

will not

strike

mine and I wrote his biography—

result,

1957

$32,634,267

gross

they

Teachers

incorrectly stated in the June 26 edition that Gulf,
Mobile & Ohio, Illinois Central and Missouri Pacific were operat¬
ing at a (.deficit. The actual figures for the first five months follow:

Five

and

head

its

President's

Wilson

Mr.

net.

formed

was

member

was

Gulf, Mobile & Ohio—

Solution

very

Labor Leaders

these

outcome

little attention
was given to labor matters by em¬
ployers or government officials
until 19il3 when the Department
Wilson

Chronicle)

—

pany,

this is most

Few readers

realize

CORRECTION
It

of each.

ago;

metal

the

with

has

With

strikes and

items
Items

many

year

ahead

liquors,

large

This group which includes

drop of only 6%

seed

2.9%

not

Standish

How to Prevent Strikes Now

;
.*■

anal¬

(Special to The Financial

DENVER, Colo.

permanent cure.

have

given

month,

and

prove

Russell Investment Co.

ish

employment,

desk

upon my

S.-and

Holland D. Standish With

by claiming
the cause of

All of

the-U.

Although
govern¬
investment business in Boulder
appropriations
and
other
and prior thereto "- was with the
gimmicks may temporarily help

placed

each

ment

leading

strikes

The Midwest Board predicts a decline of only 7.5%. Gains of
12% are anticipated for grain; 3.9% for flour, meal and other
mill products; 3% for livestock; 4% for poultry and dairy products;
1% for sugar;
18% for brick and clay products; and 2% for
fertilizers.
:
%
^

decline

have
list

the

years

'capitalism

what

blow to Russian propaganda.

unfortunate.

with

refer¬

hours, In
fact, during
the past ten

■

re-election

opportunity to

they have accomplished for them.
It would both increase employ¬

ment

the recession.

and

! the Northwest Territory off 25.3%. The Ohio Valley Board predicts
a drop of 15% under a
year ago.
; /
*
-

that

to wages

ence

District of 25.7%.
under a year ago with

help -his

during

special

carefully

conditions

Allegheny

District is set at 28.8%

assistant

was

some

union members

Recalling friendships with W. B. Wilson, first secretary of
labor; and Samuel Gompers, first head of the.AFL, Mr. Babson
reviews a bit of labor development and
prescribes an anti¬
recession remedy. Suggests manufacturers and retailers will¬
ingly accept less profits and wageworkers forego increases.

for

drop

their

the

This would, give the

labor leaders

By ROGER W. BABSON
i'

terms.

same

WANAQUE BOROUGH and WEST MILF0RD
MEMBER FEDERAL DEPOSIT INSURANCE CORPORATION

The Commercial and Financial Chronicle

Quick Look at Euratom

Commission

construction of

>>;

million kilowatts of nuclear power

one

competitive in our own country.

lj want' to r

Thursday, July 10, 1958

Then,

;

"We have given our
t

ergy Agency of the Organization
of European Economic Coopera¬
tion,. Nevertheless, the experience

En-,

France,

joint

nations

Ger-V
•

>to

item
J. interest
audience. I, &\thv
tOne

Luxembourg

•jandTheNeth-.;,
fT7—.,1
erlands.; "Nunl; '>?«>«»
:
cleoniCs";is to :;77.
77>''7
be
congratulated for promoting
a
meeting and for contributing,
through .it to an increase in public
understanding of the close
relationship between the American
atom and American foreign
policy, the American atom and
they free world's
security,; the
American
atom
and
all
men's
welfare.

JSURATjOli^ i*is

important. be-

ate
program 'to
build, nuclear
power' plants 1*5 the beginning of
the answer to their energy de-

Wise

the

set

forth

report

Men,"

for
of the
fifteen

nature of such an assembly.requires us to subordinate
for, the moment any discussion of

million kilowatts of installed nuclear, power capacity by
1967,
may be on the ambitious side, but

the

of any substantial
capacity will help
to speed progress in the United
States toward, the tough goal of
making atomic power competitive

military atom. To do so is
particularly difficult at the moment
of

because

the

high

degree

interest in the efforts
in various quarters to force the
countries of the Free World, relpublic

atiyely

short

military

man-

power, to agree to
best
technological

give up the
developments

that

useful
of

available

are

them

for

them

the

and

purpose

numerical

equalizing
great
disparities.

In view of

established

manpower

the

sion

aggres-

dictatorship,

Soviet

the

record

to do so without a system of comprehensive
and
highly
reliable
guarantees impresses me as sui-

cidal.
I

however, going to resist
the
temptation
to
discuss
the
atom's
place
in
our
defense
scheme
and
devote
myself entirely to one of the items in the
am,

class

the

building
part of this
the

living

citizenry,

country.

its

own

if the USSR

were

standards

even

the good neighbor that we hope
some day common sense and selfinterest will force it to be,
EURATOM on its own merits
would be of great political and
economic importance to the
United States. This significance,,
however, is magnified when one

elates it to the economic competition now frankly advanced by

need

Communew

and

dangerous form—the Khrushchev
'economic

crusade."

It is hard to compare the rela¬
tive importance of programs that
are

not

but

EURATOM

second

completely

comparable

probably ranks
importance only
to

the International Atomic

Agency

among

for-Peace

Energy
the major Atoms-

programs

since the United States
four

years

world
to

ago

appealed

marshall

promote

developed

civilian

its

than

the

resources

uses

nu-

cje^energy. Over the long haul,
•Fnwn

talk

Mr.

the Nucleonics Seminar,

Floberg before
New York City,

step

infiltration

Communists

which

the

adept. At stake

are so

its

temporarily exhausted but
immense industrial plant. Europe
was

ef¬

of leaders such

Adenauer,

vision

and

them.

with

worked

who

these

fortuitously underscored

lars.
it

demand for

expand-

world will mtenavailability of power
*9 ourselves and our friends will
,

Marshall Plan

use

and

enthusiasm

with

responded

dol¬

It worked well—so well that

has " become

permanent

or¬

ganization and continues to make

valuable contributions to the eco¬
nomic

nations.

1949

NATO, the

came

Organizational Setup

•

familiar with the

us are

Assembly

142

delegates

by the parliaments of the
six nations. Disputes in the Com¬
munities
mon

to be taken to

are

a com¬

Court of Justice. They have a

common

"board of directors" in the

Council

one

which

Ministers,

EURATOM

Social

has

Committee,

ATOM

several

impor¬

•

the

•

for

has

knocking down trade barriers.
1957,

coal

production

had

metric tons,
to

♦

European

coal, and steel,
done
good work in

Community

reached

in
248

the

six

million

and steel output had
60

million tons—both

well above prewar, levels.
The defeat in 1954, however,
the European Defense

has the task

proposals really put the advocates
of sensible European unification
to

the acid test.

such
and

That defeat was

shocking

disappointment

statute

The EURATOM

special

Supply Agency
importance to the

today. It will have exclu¬
option on all special nuclear

group

materials

produced in the Member

States and exclusive right of con¬
inside
For

the

contracts -for materials
outside the Community.
details

methods

its

I recommend to your
the paper given by Mr.
Clark Vogel of the Commission's
operation,

study

International

Affairs

the joint National

Division

Industrial Con¬

ference

Board-Atomic

meeting

Industrial

Chicago

March.
One

readily from this
recapitulation that it took much
skill and drafting efforts to put into
can

see

legal language all of the compro¬
mises and adjustments that had to
be
made to
create
this unique

it was
marking an organization. The Treaty of the
play an important part in regu¬ end to efforts to bring about a Atomic Community has 225 arti¬
federation of European States. In¬ cles, five annexes and three pro¬
lating that competition.
Europe hardly could be relied ability to agree on a common tocols. The English version used
military program to be run by an at the Commission is a book fiveuP°n *-or major support in this
integrated defense organization eighths of an inch thick! Never¬
?r.ta+?r f°r anX "?creased conview
ever-pres¬ theless, I suggest that the Treaty
tnbuuons to collective defense if seemed, in in theof the to
ent threat
East
physical and the record of negotiations be
lts .inaustlT> transportation and
studied by all
a§riculture became stagnant be- security, to demonstrate the in the atomic who have a stake
energy market in
cause i physical, financial and po- phoenix-like nature of nationalis¬
tic prejudices and the futility of Europe.
.were not able to
develop a
Although not completely supra¬
s^tls*y lts requirements for the trying to them. This program to national organization, thea Treaty
overcome
moment of
e"V'gy nec'essaI7 for the
development of its lndus- adversity, however, only seemed gives the Atomic Community
to inspire the proponents of Eu¬ broad powers to act for the six
^
natq
ropean
community with new nations, particularly in dealing
with
other
international groups
meeting in Copenhagen, the need determination.
for more industrial development
The very next year, in June, and with sovereign powers.
It,
discouragement

widely interpreted

that

of drawing a

for the Supply Agency.

Forum

Community

Commis¬

sioner Sassen of The Netherlands

cluding

the EUR¬

and

Supply Agency.

War III.

came

face

nuclear facili¬

excellent

ties

of its members, particularly
France, Belgium and The Nether¬
lands.

the4 support of both private

keep
and

public

utilities.

Finally,

must have political backing. In an

excellent

analysis

for

done

EURATOM

Twentieth

the

Century

Fund

European

Union.

matter

how

great the

gains from the integrated devel¬

opment

atomic

might

energy

collapse of the effort to achieve

broader economic union.

the

other

hand,

by succeeding

in
this technical and spe¬
can
help the
European Economic Community to
its purpose,

institution

cialized

the
many
beset its future."

surmount

which

obstacles

of Conventional Fuels

basic

"nuclear

economics"

Europe have been thoroughly
discussed and no one disputes the
fact that competitive nuclear
power

will

quickly

over

"Mother
the

much more

come

there than over here.
Necessity" in the form of

ever-growing need to import

coal and oil for conventional plants

justifies advanced action both by

governments and private industry
that are not required in the United
States.

;

As of

today, oil makes

/ 7

EURATOM

the

fifth
plants

up a

of fuel used in conventional

tant

sive

1952

does

already

has

member from each country.

military alliance that remains to¬
day the Free World's defense bul¬
wark against
a
possible World
In

chosen

Then

the

European

political integration
many problems.
For its research program, it'must
move tactfully in coordinating the
but

Lack

pattern of organization of
these three organizations.
Legis¬
lative control of all three is vested

of its 17 member

progress

for

movement

economic and

Europe's main oil supply.

novel

prostrated by war
target for the kind of sub¬

versive

political

to the per¬

Ill

Europe

was

contribution

real

The

statesmen for many years.

climbed

r
? 5r' a

if there

even

war;

great

Federation

that

by the Suez crisis, with its threat

atomic

long and hard road to a real
in Europe.
The latter
has been
a
dream of European

nations

the

States

one

dedication, wisdom and

others

federation

which

resources; no threat of
nist aggression in its

cold

EURATOM is

this

Mollet, Spaak, Monnet and many

Moscow as a weapon to make inroads on Free World unity and
to dr?w uncommitted nations into
the orbit of the Iron Curtain.

the, Privilegeof supplying basic
materials to Western Europe and

and the Free World
were

have

United

for

ficient

own

for

the

sonal

Most of

Will Assist European

programs.

optimism

be, EURATOM could not survive
credit

the

our

allies, strong politically and economically, as well as in military

would
fKo

for

of 1958.

the United
well repre¬

the first day

So I repeat: Even if the Soviet
Union were a law-abiding nation,
devoted primarily to improving

J"? °"tput. °j those goods in
highly industrialized Western
i'8"1' muusuiauzea Wes
European nations as well as in
°ur own country. Competition for

EURATOM

being

departments or divisions.
wisdom to the offer of economic They include
a
Scientific and
assistance, made
by
the United Technical Committee, a Joint Nu¬
States in 1947—the Marshall Plan. clear Research Center which will
The next year, the OEEC was be the special care of Messrs. Medi
set up to help make the most ef¬ and De Groote, an Economic and

Importance of EURATOM

the
de¬

will be

potential

into

came

here.

straighten out the cur¬
rent
down
slope
in
the
hard
goods manufacture curve, there

atom's

peaceful applications.

panintf
meaning

sented

the

and

1957, was completed the following
December. The two Communities

was

to men, money
There is deserved
EURATUM will

paper

by Mr. Ben Moore, he
Rati¬ summed it up this way:
7fication
of
the
treaties,
which
•?; "Its future is bound up with that
were
signed in Rome in March, of the movement for

men

for

translated 'from

being

Atomic Energy Community.

wisdom

mean

organi¬

European

other, which concerns - us most
here today, was for the European

the

problem.
target

for

was

Community

The

States,

Economic

parts, outline the objectives of the
joint program with the United
States, face up to the problems
involved, and try and see what
industry
which is

words

but related

One

Much

might

United

draft statutes for

separate

fort

this

the

report—issued

day to sketch briefly the story of
EURATOM,
describe
its
main

fufhre power situation
ttafeconvinced' leaders
of these natiops that an immedi-

"Three

The very

this

and
jn Europe

EURATOM

energy

visit

achievement must

rent

The

two

velopment."

energy

mand

the other

nuclear

rdani

While they were complet¬

their

zations.

European Communities—one
field of broad
economic

several factors in the cur-

cause

their

the

area

studies

extensive

gathered much data, some of

tions agreed

sup¬

their progress toward unity—the
successful ; establishment
of two

vital

rights, duties and powers

now

and

of the Member

May, /"For success of its nuclear power
1957—negotiators for the six na¬ program, EURATOM must get and

increasing political unity. This
support continues as these coun¬
tries
now
enter a new stage in

integration and

Arman d-E tzeJ-G i

ing

strong

undertook

States.

Therefore, it may be useful to¬

for

en¬

terprises, the huge sums of money
involved and its impact on
the
U.
S.
atomic
energy
industry
make
EURAtQM;. the Number

Italy,

many,

six

the

Commu¬
nity, made up
of
Belgium,

ergy

port to the historic efforts of six
of the European nations to find
in economic integration
a
basis

countries.

The

Economic

Community, he added:

These
are

broad

and

European

certain that the

seems

activities

energy
States.

make

team

central feature

its sister organi¬

and

the

initiative in
fact, constituted

specifically

turning

zation,

^ropean^ Nuclear En¬

the

from

Men"

Wise

therefore,

study

six

policy."

foreign

our

new

European

Community will assume a major
role in coordinating the nuclear

for using nuclear
energy to meet the growing de¬
mands for electric power in the

our

years

many

EURATOM

Atomic

This has, in

for

scope of
become one of the most signifi- IAEA gives it promise of having
cant technical and political
de- greater influence -on world peace
velopments in Western Europe than EURATO^l'ljcan ?bave, and
EtJRATOM canitqt:b$ isolated in
Since World
one s
thinking ^ffprjiV£ither* the
War. II. 'This :
Upiogra m^oLibilateral ■agreements
development,
thefcen tral;
subject of this u
meeting "to- ■
d a yt. i s the"

prompted

the

commission

of the prospects

recognition of the need

1947.

founded

been

that

political

"the' broader

discuss

has

unity and strength in Europe

for

plants

"Three

sympathetic'! interest (in

the same

Mr. Floberg believes this joint
program is worth ail the sweat and toil entailed and suggests
success
could mean millions of dollars in equipment and
services to be supplied by American industry. Also sees this
speeding progress toward tough goal of making atomic power

for

market

common

ernments

OEEC)

the

S. type by 1963.

of the U.

build

the

"This

to demonstrate our

Our Under-Secretary

He said:

25.

world nuclear leadership in
view of recent proposal by new six-nation European Atomic
Energy Community for a joint program with U. S. A. for
nity for

and Steel Com¬
launched at the
Messina Conference a new effort

political significance Europe. This was centered on the
of economic growth in his address peaceful uses of nuclear energy
marking the tenth anniversary of and in the general Held of trade.
the
Organization
of
European Enough progress had been* made
Economic
Cooperation on April by November, 1956, for thd; gov¬

Energy Commissioner describes opportu¬

Our newest Atomic

Coal
leaders

the

1955,

among

feature -of. the munity

State, Christian A. Herter, un¬

derlined

FLOBERG*

States Atomic Energy

United

Commissioner,

was„.a

discussions.

And Benefits to United States
By JOHN F.

allies

our

ties

economic

closer

and

(116)

Community.

Even tdking into consideration the
new
Sahara fields, EURATOM

without

that

recognized

nuclear

its economy would be
largely dependent on Middle East

power,

With the Suez crisis still fresh

oil.

mind,

this

not

pleasant

prospect. The Community's atti¬
tude is expressed in the statement
that "it is essential that oil should
be a commodity and not a political
weapon."
Newspaper stories of
the past week emphasize the con¬

timeliness of that observa¬

tinued

tion.
Power from conventional

plants

in Europe using imported fuel now

costs from .10 to 12 mills per kilo¬

The

hour.

watt

S. average

concentrated in the
mills
some

area

hour,

kilowatt

per

areas

but

mill power

EURATGM has

not unknown.

of 4 to 7

es¬

timated that power from U. S. and
British type nuclear plants would
run

from 11 to 14 mills now, with

the expectation that operating ex¬

perience, further research and de¬
velopment
and

and improved design
performance will bring down

these

rates.

those

ex¬

pectations with confidence, and
must

not

the

overlook

fact

we
that

the high cost end of the domestic
power

scale and the low cost end

of the European power scale pro¬
vide considerable overlap. To this
extent

EURATOM

will
application.

have

perience

operating ex¬
quite direct

Encouragement by United States
Now

let

look

specifically at

EURATOM from the view of what
it may mean

to the United States.

From its early

planning, our Gov¬
ernment has given encouragement
and support. When the Wise Men

of EURATOM discussed in Wash¬

ington in early 1957 their target of
15
million kilowatts of nuclear
power,

they

were

told that

the

Volume

United

the

188

Number 5758

States

did

availability

would

not

The Commercial and Financial Chronicle

think

that

mean

fuel

nuclear

limiting

Some

factor

and

Diplomatic
EURATOM

became

March

recognition

13,

formal

Act

when

and the

tion

v'capital" in Luxembourg. Ambas¬

sador Butterworth

heads

communities,

accepted

United

joint

Coal

the

working

party

use

of tne authorization

Such

cur¬

states,

percentage

gains

electric power production from
1947
to
1956
were:
Mississippi,

688.3%; Tennessee, 276.6%; Flor¬
ida,
255.6%;
Alabama,
225.3%;
Georgia, 136.9%; Louisiana, 89.1%.
With

the
single
exception
of
Louisiana, each District state in¬
exceeded

nation.

this choice.
international agreement

thinking

the

gain for

•

Four

the

favors

of the six

states

now

are

engaged in petroleum production.

tails.

Taking the six states

could

simple

docu¬

ment

stating the intentions of the
parties, the objectives, and
setting
out
a
few
general

the

two

headed 1 by
General Man¬

were

Group Conference

would not have to spell out all de¬

The

dividual

crease

rent

in¬

program.

.the AEC's Deputy

treaty

provided in the 1954 Act, and

members

can

first such

EURATOM's

States

This

Act.

agreement
approved by both houses of Con¬
gress. If the latter, it would be the

vitation to set up a joint working
party to work out the details of a

proposed

the

•

At California

Economic Picture

ade¬

States under Sec¬

United

124

either

com¬

having

accredited previously to
and Steel organization.

been

bined U. S. political mission to the
three

EURATOM

between

Officers of Investment Bankers Association

Today's Southern

addition to
Atomic Energy
In

assurance

rangement"

their

and the

Continued from page 13

obvious

both

are

the

quate supply of U-235, there will
have to be an "international ar¬

Ambassador

Communities

complicated.

tailoring

W, Walton Butterworth presented
hi? credentials to the atomic and
economic

mechanics

and

reaching this goal....

both sides.
requirements

give and take
of the
legal

(117)

•
' o'rl./'-umr
R./W. Cook, and the Euro¬ boundaries.
Next would come an Agreement
pean side was headed by Mr. Max >
for Cooperation under Section 123.
.Kohnstamm. The group held intensive meetings in Luxembourg This would contain such specific

ager,

group,

the

percentage gain in petroleum
production from 1947 to 1956 was
74.7.

For

the

nation,

the

gain

40.9%. Louisiana is, of course,
major producer. Production in

was

in March and have

series

ington.

of
:

items

just concluded

meetings

authorized

Wash¬

' r;

The purpose

of these discussions
develop detailed plans for

was

the

.the proposed joint program.

amount
the

and

U-235

the EURATOM

the European side.

and

might

and

Florida

•

anticipated

poses

of material supplied by this
The procedure is well
known to this audience—initial¬

tionate gain in manufacturing fa¬

country.

cilities, the

are

not

from

precluded

having

military nuclear programs. How¬

modest,

result

Commis¬

and the Council of Ministers

sion

Alabama

against diversion to military pur¬

ing, presidential approval, 30-day
plans have now reached the
.waiting period before the Joint
final stages of negotiation and are
Committee on Atomic Energy, and
to be presented for Executive De¬
finally ratification by EURATOM.
partment and Congressional ap¬
It is important to note that
proval on the United States side, ;
member
nations
of
EURATOM

relatively small.

guarantees

These

rand

Mississippi
that

■

the

than

region

has

propor¬

increased

its share of total construction.

1956

against 1947, the six-state
had a gain of 217.3% in con- '
as

area

struction contracts

gain

lor

the

214.6%.

The

awarded.

United

States

was

Four of the six states had

gains, that substantially exceeded
of the nation.

tnat

a\gain

Louisiana had

312.5%;* A1 a b a m a,
260.5%; F1 o r i d a, 222.3%; and
Georgia, 216.7%. Mississippi and

ever, the EURATOM Treaty re¬
time, discuss
quires full accountability for any
which
are
Tennessee trailed with 101.3% and
special nuclear materials that
under consideration, but the ob• ■
•
*' - .
enter the custody of the Commu¬ 142.1%, respectively. <
■/<
v,j
...
jective.of the program is to bring
nity at any point.
;
: >
into operation in the Community
.Gains Summarized
;; Amendments
to the 1954 Act .And so, in
by 1963, about one million elec¬
summary, the South,
trical kilowatts of capacity in re¬ doubtless will be necessary, and as
represented by the Sixth Fed¬
actors of proven types developed finally, after authorization for ex¬ eral Reserve
L. to R.: C'uftis H. Bingham, Bingham, Walter & Hurry, Inc.,
District, has regis¬
S. funds under tered
in the United States. Using Euro¬ penditure of U.
striking gains in economic
Los Angeles, Chairman of the California Group, and William C.
Section 261, the
Congress must
pean figures, the capital cost for
development:
Jackson, Jr., First Southwest Co., Dallas, President of the ERA.
these plants will be about $350,- vote the necessary appropriations.
.—T—;
.1/
I,,'
I
(1) It is exceeding the nation's
We plan to present to the Joint
000,000, and they will require ap¬
Committee a complete program as pace in population increase.
proximately an additional $100,Two With Leward Lister
With Reinholdt & Gardner
soon as it is humanly possible to
(2) It is rapidly closing the gap
000,000 for fuel. The program also
(Special to The Financial Chronicle)
in personal income that has long
BOSTON,
Mass. — James
O.
will include close cooperation in do so. I am not discouraged by
ST. LOUIS, Mo. — Charles R.
believe the joint existed between it and the nation. Spinney and Henry A. Donahue
research and development on the this recital.' I
are
now
connected with Leward Bates is now affiliated with Rein¬
U. ' S.-EURATOM
program
is
(3) It is rapidly expanding its
types of reactors selected for con¬
M. Lister & Co., 80 Federal Street, holdt
&
Gardner,
400 Locust
struction. The
program
will be worth all the sweat and toil that financial resources, largely as a
Mr. Donahue was previously with Street, members of the New York
is going into it, and I believe that result of greater industrialization.
designed to offer maximum par¬
and Midwest Stock Exchanges.
Schirmer, Atherton & Co.
we are going to emerge from the
ticipation on the part of industry
(4)
It has run ahead, of , the
with a satisfactory nation
in the United States and in the negotiations
in
percentage
gain
in
forward-looking program.
EURATOM countries.
Two With Melvin Gordon
Joins B. C. Ziegler
agricultural income.
*
Success could mean millions of
The estimated capital cost for
(Special to The Financial Chronicle) :
(Special to The Financial Chronicle)
(5) It is achieving a more rapid
nuclear power plants is two to dollars in equipment and services
gain in manufacturing output and
MINNEAPOLIS, Minn.—
REVERE, Mass. — Stanley S.
three times more than the invest¬ to be supplied by American in¬ construction than is characteristic
Charloff
and
Jacob
Hershman Charles J. Bowe is now affiliated
ment
required for conventional dustry. Both you and your op- of the nation.
'
.
have joined the staff of Melvin with B. C. Ziegler and Company,
plants producing 1,000,000 kilo¬ posites in the EURATOM nations
The gains that have occurred in Gordon Company, 10 Pines Road. Minnesota Federal Building.
watts. However, anticipated rising would gain invaluable experience
the District have been generally
costs
of
imported
fossil
fuels through joint research, develop¬
moderate, but there appears to be
coupled with decreasing costs of ment and operating experience.
every prospect that the region's
nuclear
fuels
are
believed
by With Government support, you
rate of advancement in popula¬
EURATOM economists to
bring would, in effect, be buying in¬
tion, income, financial resources,
a
overall
investment
for
nuclear formation and experience that we
and manufacturing will continue
plants, over a period of 20 year's, are confident would speed the day unchecked.
At the Close of Business 011 June 30, 1958
Assuredly, those who
economical full-scale nuclear
in line with that of oil or coal- of
live in the region today must be
fired stations. And not just the power
plant operation in many
•Jx'J
prepared to expect conditions of
cost
but the availability of for¬ parts of the United States.
accelerated change in population,
Cash and Due from Banks
$ 6,782,754.39
Keep your eye on the home
eign exchange must be considered
in purchasing power, and in re-,
market. A program of this size
in evaluating these economics.
United States Government Securities....
21,112,299.90
source
utilization.
The situation is well described cannot be downgraded as a mere
State and Municipal Securities
22,700,604.34
And so let me refer again to
in
the
Moore study, previously "flash in the pan;" but it is also
Other Securities
♦
3,869,902.69
true
that
EURATOM
will
be Henry W. Grady. He died on Dec.
mentioned:
23, 1889, at the age of 39. He had
Stocks
715,881.20
"Thev United
States
has
the pressing hard to become selfreturned ill and worn out from a
sufficient at the earliest possible
Bonds and Mortgages
technology, skills and capital to
3,527,215.73
Boston speech. To the very end,
moment.
EURATOM
has
made
develop nuclear energy but no
Loans and Discounts
28,266,118.32
this plain in our discussions, and he had worked for a better bal¬
urgent; need for it.
Western
Bank Building
ance betv/een agriculture and in¬
606,153.30
we could not logically do anything
Europe must have nuclear energy
dustry in the South. The purpose
Other Assets
768,029.18
but encourage this goal.
to grow and prosper but still lacks
for
which
he
labored
so
hard
Putting all these factors in the
$88,348,959.05
the means to produce it on an
seems now to be nearing achieve¬
pot, I still come up with this
adequate scale."
ment.
•
/,.
conviction:
At
this
particular
v /
That ;is exactly where the joint
We of Georgia properly honor
phase
in
the
development
of
Capital ..••...■■•■.•..•.i.......... $ 2,420,000.00
program comes into the picture.
nuclear
power
in
the
United Henry W. Grady. On the corner,
6,000,000.00
Surplus
States, backed up by a s trong of Forsyth and Marietta yet stands
1,211,486.97
Undivided Profits
have
much

cannot,

the

this

specific 'details

—--—i~—-

—>——

■■

■

■■■

,i,.

Cr/afemen/
.

....

QeW/r'/r/trJ

■

What Completion

To' carry
time

the

atomic industry, we

Can Mean

this

out

schedule

EURATOM is

program

needed

prospect

our

horizon.

of the water supply at Germantown a fortnight ago nor the

PALM

BEACH, Fla.—Frank B.

of a group of campers in

managing partner of
Frank B. Bateman Ltd., 243 South
County Road, has announced the

lobby has interrupted the task

addition to his staff of Mrs. Hilda

presence

forces,

days

that

are

working

seven

week to assemble the
technical data and ex¬

necessary

plore ,jyhq paany "facets, of the pro¬
gram.;

Tq? make

Bateman,

Doyle, Russell Johns, Jr., and

James Rich.
•

Mr.

ing

the

nance

work

going

Johns

currently

Mr.

attend¬

SchooL.of

Rich

University.

Fi¬

student
.

>■

1891.

21,

females

below

The
the

draped

two
heroic

statue

712,466.88?

General Reserve

Unearned Discount and Other

Grady approximately represent
"History" and "Memory," and not
his "wives." The new $20-million

Reserves for Taxes and

165,710.23

Deposits

this
of

year,

the

Grady

1892

built

memorial to his

No matter how many
may

the

77,658.507.37

$88,348,959.05

memorials

economic

KINGS COUNTY

name.

erect to Henry W. Grady,

Southern

180,787.60

Expenses.

however, his greatest memorial is

today.

Deferred Credits I

direct descendant
Hospital

public subscription and opened in

Wharton

and

Yale

Oct.

Grady Hospital, dedicated earlier

With Frank Bateman

are

page

our

now on

stupendous task.

giving it top priority in
Washington. Not even the stop¬

the monument to him unveiled on

gain from the joint effort with
EURATOM
as
from
any
other

For Us

!,-.v

TRUST COMPANY
tilablifhed 1889

FULTON STREET at
In the Heart
Member

picture
M

the

corner

of COURT SQUARE

of the Civic Center, Brooklyn

federal O.p.iit Inturonee CgrparaUaa

The Commercial and Financial Chronicle

(118)

BROTHERS

BROWN

HA R RIM AN

NEW

banks.

combined institution
bank

due from
58,919,079
56,281,667

44,723,127

discounts

64,815,901

71,310,429

14,685,284

14,645,284

Govt,

rity
Loans

capitalizations

ton

52,638,941

holdings——;

the

secu¬

under the

National

elected

been

has

Corn

Chemical

Vice-President of

Assistant

Exchange Bank, New York, it was
lannounced July 8 by Harold H.
m

the

.l ,vV1 ••••.:

the

members

Division

New York.
Bryan
has
been
Chemical
Corn
Exchange

International

since January, 1953. He

Division, han¬
dling its busi¬

the

bank

the

with

Oklahoma

and

Tcual

John

dall
been

Wolf

Cash

Samuel

Santoro

Assistant

Chairman

York,

Helm

Govt,

announced.

All

was

Also

Chemical's

S-

due

Govt.

Mr.

Santoro

firm

department

banking
When a trust

formed

was

tan

Bank,

nounced

New

York,

July 7
Chairman. •

McCloy,

THE CHASE

'■'

■

Total

Cash

BANK, N. Y.

curity
Loans

1,952,817,255

Both officers have

discts.

3,632,390,376

106,019,823

95,073,436

National

York.

City Bank of New-

will

Scandinavian

.European

charge

business

District

sistant

the

Clute

time

same

COMPANY,

■

■».

BANK

NEW

AND

YORK

Cash

and

from
U.

Loans

IIANK

NEW

resources

Cash

and

from

——

CITY

BANK

Govt,

30, '58

curity
Loans

Savings

1,825,609,083

1,958,669,243

87,349,788

50,329,469

1,590,241
*

granted

was

bank.

new

and

Total

Hennessy; has

CO.,

Govt,;

Undivided

profits.

"•

57.044.839
107,997.023

BANK

30, '58

BANK

Total

J„

Company

has

...

FARMERS

Reichle, formerly

hanover

47,604,495

will

80,564,941

discounts 165,780,281

71,648,694

162,022,256

3,044,617

assist¬

83,344,122
2,384.790-

13,998,127
1?

2,970,606

bank,

13,491.867

resources-

from

NEW

curity
Loans

1,576,068,695

Undiv.

466,700,990
472,258.089

262,538,456

896,307,889

912,329,335

profitsMARINE

32,557,654
MIDLAND

Cash and

rity
Loans

612,433,858

536,620,352 532,492,816
188,825,616

171,427,350

secu¬

holdings
&;

654,162,009

Mar. 31, '58

due >rom

Govt,

Undivided

CO.,

YORK

8
resources

DeootsitT*™™"

27,507,257

TRUST

June 30, '58

500,560,881

disctsi

NEW

Total

banking

career

Assistant

Vice-

1952

and

made

ing institutions

—

largest bank¬
The* First-Me¬

chanics National Bank of Trenton,
New

Jersey,

and

The

Trenton

124,583,828

105,936.084

discounts

297,899,075

281,953,189

profits—

11.912.686

11,454,654

Banking Company, Trenton, N. J.,
Trenton's oldest bank, have taken
initial

steps

sources

into

to
one

Bergen,

The

merge

their

Emery,

National

Sydney

Stevens,

The Trenton Banking

Wee-

was

Bank

Citizens

National

Bank

The

Citizens

Trust

National

Company

Bank

Towanda,

Total

1958

Cash

and

Loans

banks,,

Schnecksville,

Egypt

Pa.,

621,912,673

discts.

629,316.473

677,174,562

profits—

25,221,104

23,531,584

and

mon

merged under

new

Bank

title

a stock dividend, the com¬
capital stock of The Fargo
Bank, Fargo, N. D., was

National

ol:

increased from $300,000 to $500,000, effective June _25. (Number

Egypt«'

Schnecksville Bank. A branch was
location

established in the former

shares,

Schnecksville

State

360,425,423

721,546,932

Undiv.

Farmers'

388,320,046

se¬

holdgs.

Farmers' Bank of Egypt, Egypt,

charter

1,374,671,775

due

Govt.'

curity

\
Mar. 31, 1958
$

1,782,699,052 1,707,841,767

—

and

from

ef¬

1,951,420,462

resources,

Deposits

fective July 1.
ft

DETROIT,

MICHIGAN

Towanda, Pa., changed its title to

THE

PHILADELPHIA

Bank.

NATIONAL

PHILADELPHIA.

made

shares
par

outstanding
value $100.)

—

Company.
banks

Mar. 31, 1958

Deposits
Cash

and

from

\T.

5,000

Govt,

Undiv.

889,349,498

317.499,020

287,114,791

effective

1,001.069.910

Bank,

its title
First National Bank, Hastings,
changed

Neb.,

July

1.
%

due

banks

curity
Loans

1.108,190.735

National

Hastings

Hastings,

995,718,238

resources,

The

BANK.

PA.

$
Total

and

President

Consolidation of the two

The

15,000

...:

BANK

NATIONAL

THE

—

$20 }

...

June 30,

June 30, 1958

jointly by Harvey C.
President of The First-

Mechanics

in"

yalue

(Number

25.

outstanding

re¬

banking institu¬

announcement

done

effective June

tion.

July

Union

one

(,en>

Pa., and Schnecksville State Bank,

s;t

Trenton's

0fl0

1905;

at 2200

City,

111., increased its

capital stock from $100;S300,000 by a stock divi-

common

re¬

se¬

holdgs.

President

1,796,060,422

Union

■(

Champaign National Bank,

The

Champaign,

City. operates
two

Two

1,957,568,428

banks

Green-

Dec. 31, '57

Avenue.

Loans & discts. l.OOO,654,184 1,163,844,563
Undividecl prof>s
27.995.104
32,891,449

Company

aie

713.887,129

1970.

since

offices

.company

branches

Bank

^
~ "*
~i'
age was 54. Mr.

YORK

due

Govt,

the

July

elected

was

business

598.854,093

945.291,975

se¬

hldgs..

Assistant

with the Bank of America in 1932.
He

The

gional officer for the Middle East.

1,720,918,393

Deposits

His
began his

Grant

642,873,800

banks—

curity

outstanding.
Trust

due

and

Govt,

retire

used

hawken.

wich, Conn.

executive

North

Grant,

died

been

and

~~""u

42,096,925.

.5.327,114

Vice-President

America,

has

Bergenlme

holdings—
&

stock

The

placed

50,919,038

secur

Clinton

121,257,590

June 30, '58

Cash

162,973,950

78,035,796

Total

N.
S»

41,086,704

is assigned to

Richard D. S. Bryan and Grenville H, Paynter have been elected

CO..

secu-

THE

Govt,

Loans

—

Govt,

the

Street office.

rity

Mar. 31, '58

due from

banks
ft

TRUST

160,729,988

rity h°ldi^gs

partment, he now is assigned to
the Comptroller's
Department.
Mr. Lyons is
assigned to the

ant branch manager,

Dec. 31, '57

of New

falls due

Commonwealth

305,198.877

from

banks—,—-.
U.

was

118,529,624

un
banks

joined the bank in

bank's Fifth Avenue office.
Mr. Mitchell is
assigned to
bank's Union Square office.

due

June 30, '58

Mutual
.IViUlUd

Company

274,839,135 271,165,111

and

NATIONAL

COMPANY, CHICAGO.

52.416,914

with
Willi

note
note

The note

preferred

TRUST

ILLINOIS

from

Trust

Insurance

York.

311.024.859

Undivided profits

resources

Cash and

1930. Formerly an Assistant
Trust
Officer in the Stock Transfer De¬

23rd

York,

by Richard L. Maloney

Deposits

Trust. Company.,

Mr. Friedsam

New

Board.

Cash

Dec. 31, '57

AND

110,156,589--Total resources, 2,795,753,374 2,674,362,165
.3.601,149
3,089,500 Deopsits
2.502,144.954 2,394.495,171

City,

100 000
OOsOOO.

ILLINOIS

CONTINENTAL

•

44.440,662

Cash

Union

bank's

total

of $87,500. ~;

222,721,098

Commonwealth

is Mr.

capital
structure
$350.000,■including
$175,000 in capital stock, $87*500
surplus and an operating reserve

31, 1957

sc-du-;...

discounts

bank

241,244,877

•

holdings

Cantrell,

Warfield.

——34,749,323

Proceeds

resources——

Deposits

been

Trustee of the. New York

June 30, '58

York,
are
announced
by
Horace C. Flanigan, Chairman of

bank's

.S.

rity

Life

TRUST

s;s

Bank,

New

the

Loans

Carl

and

The President of the

CO;,

216:803.402

banks

War field,

L. Malan, Herman F.
F. Gragg, Lloyd E.

TurnbuR

The

TRUST

Earl"

Directors:

Austin,

with

236.834.230

Harry
surplus

HOSPITAL

PROVIDENCE,

rcsou'-eesl

Deposits

The bank has

.11

ISLAND

BANK

Cask anl due from

per¬

Rocco

President

CITY

Assistant Secretaries of

Manufacturers

Mr.

Total

„

84.913,102

Frederick
E.
Lyon,
Thomas D. Mitchell and Harry C.

the

Natick,

$150,000.

RHODE

NATIONAL

Subscribers to the

Li Guth, F.

Company

June 30, 195a Dec.

Bank

the
Office
oL, the
of the Currency to

58,423,294
1,955,377

1,322.688
;. -; v; *-i; *

,r,

capital of $300,000 and

FIRST

Smith

j0hn M. Kagy, Joe B. Hale, Peter

and Wilbur Trust Company.

47,874,329

Burrows is Cashier.
a

Trust

Elbert

state charter to the Com¬

Towiiig

mergers;
when First-

consolidated

was

capital stock
of the bank have elected the fol-

bank

1931

PATERSON,

Mass.,

the

became

munity State Bank, Salem, 111.

-new

Mar. 31, '58

![:

Friedsam,

Mechanics

last

51,898,464 i 46,349,428

National

LaPenta

Jr..,. President...

se¬

appointments of Walter

Heichle

announced

profits—

The

elected

holdgs 1,500,873,223 1.150,088,288
discts. 3,965,541,628 3,887,216,612

Ilndiv.

7,132,710,136 6,836,569,280

banks—

the

made

were

secu¬

by
Comptroller
open

the

78,640,183
175,752,090

176,154.684

Auditor

State
issued

was

National

and

institution

discounts

will

profits,.

First

18,739,221

18,097,725

1934 to

1928

First

The

Trenton

solidation

21.4(52,692

June

John

Mar. 31,'58

due

Govt,

with

from

holdings,77,020.453

Loans

136,534,960

discounts

Trenton.

secu¬

National

from

17,305,831

:;t

8,056,432,963 .7.782,858,145

—

origin

due

Govt,

rity

Trenton'. Prior to the present con-

20.284.537

due

I—

Undivided

34.497,348

profits

YORK

$
Total

its

traces

Bank '

June

Deposits

-.-v..

First-Mechanics

Bank

150,899.395

holdings,,,.

rity

58,323,594

1956.

banking

162,524.566

;

28.9,569.826 285.775,535

banks

First-Mechanics National Bank of

320,506,835 318,656,024

resources-^-.

Cash and
>

The Mechanics and Manufacturers

WESTCHESTER,

$2,587,500

Deposits

Jersey,

New

369,738

148,920,384

and

Loans

Mar. 31-. 1958

15,007,319

of Pennington,

.*>

Total

merged with the First National

Bank

PLAINS,

resources.

se¬

discts.

: ■

banks

TRUST

37,967,179

25,873,988

Richmond, Va.,

from

S3,001,500. effective July 1. (Num,1 ' f ^
outstanding-150,075

Banking

57,390.245

629,660

Cash

•

1,953,596

Govt,

Bank

increased

was

the Trenton

now

merged

81,885,750

Total

due

banks

31, '58

Until

Chamhersburg

8120,630,230 8120.356,038
108,473.796
103,609.452

curity holdings

Chase

York.

New

mon

Banking

se¬

mission
,

Trenton

Company
has
had
one
other
merger in its entire history when

17,445,142

discts...

As¬

■

♦

hldgs.A- '"■■■ 48,618,009

Natick,
*■

Bank,

Assist¬

the

$20.)^

The

110,711,575

Deposits

:■

Dec. 31,'57
$122,491,285

June 30, '58

bank's

The

Surplus & Undiv.

NATIONAL

resources—

Deposits

Lansing

Division.
FIRST

:\t

June 30. 1958
Total

was

THE

STATE

form¬

appointed
Assistant
Vice-President in the operations
and personnel group of the Over¬
seas

#'• '

Govt,

been

was

Bank, predecessor of the Firet-Meshares
par value
-*
chanics, founded in 1834. the two;
banks together can point to 278
SOCIETY
FOR
SAVINGS
IN
THE
years
of
experienced
banking
CITY OF CLEVELAND, OHIO
practice and local knowledge.
'U •' '
June 30. '58 Mar.

LONG

25,651,332

WHITE

Secretary since 1955.

bank's

was

has

the

erly Assistant Vice-President.
At

COMMERCIAL

the

Overseas Division.

1950.

■

BANK,

Undivided profs—

Secretary in 1955.
Mr.
North, also in the statistical de¬
partment, has been with Morgan's
since

NATIONAL

in. the

Executive
to his elec-

stock dividend, the com¬
capital stock of The Central

National

clue

banks™

curity

sistant

Rodney N. Hatcher has been ap¬
pointed a Vice-President by The
First

beerr Assistant

Hirsch-

Ira

and

Harrison

;'y'

Di¬

1804 and
The Mechanics and Manufacturers

172,583,529

and

from

'Loans*

statistical department, which he
joined in 1951. He became an As¬

1,252,836.696

3,588,362,258

McGinnis

Cash

de¬

are

$189,105,441

resources-

department.

Treasurers since 1955.

1,895,040.018

Deposits,
,

1954.

banking

been

has

Chief Exec-

Prior

Vice-President

ant

serve

Associate

Company chartered

Bank

June 30,'58

Assist¬

tion

Manhattan
to

Director

Vice-President.

boards

Harrison

mann Chairman of the Board and
Thomas J; Reedy> former Presi-

With

70th

Huntington's

NATIONAL

ISLAND,

Total

1953.

bond

He has been

general

Mr,

profits-.;

government

Mr. Blair and Mr. Preston

the

se¬

holdgs. 1,881.410,380

A-

Ondiv.

due

banks-_

Govt,

bank's

ant Treasurer since

Mar. 31, 1958
•'$

7.438,170,443 6,868,020,047

and

from

the

8,402.416,987 7,833,541,199

resources-

Deposits
•

•

at, the

partment.

MANHATTAN
June 30, 1958

an¬

John

Hunt¬

its

chartered with

was

'■is

Griff en, who started work
Morgan Bank in 1935, is iii

Mr.
was

Assistant Trust Officer in

became

Bank

1,000.000

celebrated

I.,

SECURITY

incor¬

Morgan

17,378,973
21,432.281

1,211.487

capital of $30,000 in 1888.

Dilworth, Presi¬
1940 he was among the first em¬
dent of Rockefeller Brothers, Inc.,
has been appointed to the board ployees assigned to it. He became
of directors of the Chase Manhat¬

ington,

private

poration of the

Richardson

21,112,300

birthday at each of its offices. This

with

when

1928,

floor boy.

been

has

Morgan's
since
joined the then

the 29th Street & 4th Ave. Office.

9,214,417

of Huntington,

institution

Bank's

•

28.266,118

first bank and

the

Broadway Office.
is headquartered at

Directors

sistant

63,130,245
■

secu-

ministration.

located

Exchange Bank, Pa. The Board of

bank

rectors.

6,782,755

Randall

Street

$244,000,000.

Direct0rs also elected

reserves

both banks will continue

COMPANY,Y.

from

Main Office at 165 Broadway. Mr.

the

$13,000,-

u^ve Officer of the Pennsylvania

$57,000,000; total
funds will reach

members

and

Central-Penn

ejected President and

Rich-

Wright,

which with
$15,000,000.

exceed

All

; tt'-:"

77,658,507

—

MacCuaig, formerly an As¬
Trust Officer, is engaged
principally in pension trust ad¬

1,569.560

Dec. 31, '57
$88,348,959 878,558.944

The Bank

Mr.

Haeussler

;

undivided profits-

McGinnis.

tan Division.

44th

will

those

;;

■

$12,000,000,

$12,000,000

and

Byron

Cashier,
new

exchange of stock,

■

$170,000,000,loans

capital

13,631,512

L()^

Griffin, Watson
Blair, Lewis T. Preston, Edgerton
G. North, Jr., and John
P,

are

;

stated

14.299,072

banks

ap¬

Metropoli¬

■.

7,562,336

•1,590.45'?

resources

Deposits

Assistant Vice-Presi-

are

the

about

18,898,012

COUNTY TRUST

Cash and

the

000

con-

June 30. '53
Total

by Henry

was

14,235.378"

BROOKLYN, N.

dents of Martin T.

three

announced

pointment

Bank.

announced

First

Ray and

The

banks.

KINGS

Alexander, Chairman,

have

Harold

members of the Bank's

Mr.

;'r.

seeu-

discounts

Trust Officer of J. P.
Co. Incorporated, New-

been

has

Total
•will

both

Resources of Peoples National are

Chair¬

Emery,

Harold

i1C assets
ei

Mar. 31, '58

6,995,920 '

plished

will approximate

holdings

rity
Loans

will

^'11
uX^C
Stephen W.

.?»

from

Morgan

Managers

at Chemical Corn Exchange
New

proposed merger would be accom-

will

„

President:

S45;154,3«7 S40.8JL8.295
40,475,917
36;770,277

—_

—

due

and

i'-'v banks

Texas.

MacCuaig

York, it

Haeussler, Harold J. Ran¬

elected

appointed
John

1946.

and

rcsonrges.

Deposits

Robert

the

Chemical
Bank

1,672,437

Undivided profits

Wolf

Mr,

1.703.126

20,'58

stockholders

consoli-

Bank

Harvey

merger. The merger
the approval of the

Comptroller of the Currency and

officers

top

National

approved

have

basis,

date

the

Na-

Co.,

being

Officer; Sydney G. Stevens.

Venezuela.

joined

later

Peoples

Trust

Pa.,

subject tc

of the Board and Chief Exec-

utive

74,493,104

June

Philadel-

the
&

Langhorne,

Cur-

approve

new

of:

man

37.147,141

76,948,793

profits

UNDERWRITERS TRUST CO.; NEW YORK

Ohio,

Arubaand

39,383,718

—

for

and

Central-

the

Bank

(made plans for

stock

Presidents;

joined

Paynter

sist

discounts

of
share

Trenton

secu¬

holdings

Undivided

Virginia.
Chemical
Corn Exchange Bank in Septem¬
ber, 1953. He represents the bank
in the States of Kansas, Missouri,
Mr.

Govt,

rity
Loans

Indiana and West

in Puerto

34,420.836

Bank

Rico, Domini¬
can
Republic,
Haiti, Cuba,
Curacao,

ness

135,263,503

31,474,715

being
of the

Pa.,

between

The

135,501,375

———

phia,
tional

Tren-

both

National

dation.

Mar. 31, '58

due from

and

banks- '

asked

149,867,067

represents

States

•

First

Thursday, July 10, 1958

penn

national

Directors

ap-

150,428,220

Cash

Broad¬

Mr,

BANK

Comptroller

Exchange

YORK

Deposits;-'—2-. W2.-

bank's

165

NEW

resources.'—

Total

way,

k's

a n

both

National

with

Wolf

Harold

Helm, Chairman. The new officers
are

Chair-

Helm,

announced

NATIONAL

CO.,

June 30. '53

Bank, New York,

Exchange

was

TRUST

of Chemical

Secretaries

name

Bank

Stockholders

'STERLING

THE

Wolf

and

in Washington, D. C.

rency

made

John

voted

196,609,261

Capital & surplus—.

Bankers

and

officers, ETC.

been

by the boards of both
Application to operate the

232.819,400

banks;

new branches

already

proved

261,554,414

—

Deposits: J,™—
Cash and

revised

has

222.155,734

Total resources

consolidations

CO.,

Dec. 31, '57

News About Banks
NEW

YORK

June 30; '58

discts.

219.329.413

168.331,112

434.848.0511

428,939.004

13.139.877

12,592,062

stock of
Depositors National Bank of

The
The

se¬

holdgs.

profits

Durham,
from

capital

common

$300,000

C.,
to

was

increased

$400,000

Volume

188

Number 5758

The Commercial and Financial Chronicle

(119)
stock

dividend

and

"from $400,000
to $500,000 by
the sale of new
stock, effective June 26. (Number
shares

shares,

outstanding

Joins Bache Staff
•

BEVERLY

25,000

—

value $20.)

par

DALLAS, Texas—John W. Tur¬

$2,500,000

fective

June

$3,000,000,

26.

Life

sSs

First

announced

Bank

....

*
-.*•

First

Co., 445 North

the

Exchange,

has

recent

election

■*

Gentry

Assistant

Western

Hills

Mr.
in

the

ness

known

12 years and is well

throughout the Dallas and

••

■

Bank

Colo.,
increased
its
capital stock from $400,-

North

Texas

areas.

degree Mason and Shriner.

with

32nd

Newman

ated

with

tional

Ohio

has

Goodbody

City

East

Sixth

outstanding —
value $12.50.)

par

160,000

Farmers National Bank

rington,

Wyo.,

National

First

(Special to The Financial
Chronicle)

i
.

CHICAGO, 111.—Robert
nell

now

its

Bank,

with

Leason

(Special to The Financial Chronicle)

Co.,

COLUMBUS, Ohio

Hill Adds

(Special to The Financial Chronicle)

CLEVELAND, Ohio
H. Schreiber is

now

—

CINCINNATI, Ohio

Richard

with Edward

—

WithE. M. Adams

Ronald

staff of Hill &

west Stock Exchange.

Cincinnati

members

EUGENE,

Co., Carew Tower,

the

Stock

New

York

it's

Herrman

and

Exchanges.

Ore.

is with

—

Albert

Co., Laraway Building.

there!"

Asked

title

Torring,

why he risked death to climb

famous mountaineer

dangerous peak,

replied,"Because it's there!'

Wherever

challenge exists, Man will accept it.

Twenty-three

locally owned
and controlled banks, members of
the Independent Community
Banks
of
Southern
California,
celebrate

nity

"Independent

Bank

Week"

observance

Then,

men

6-12

first

for example,

was once

available only to the few.

of imagination found the way to transport it over long distances.

Commu¬

July

the

Natural gas,

Today, through the pipeline, all America enjoys heat,

power, energy

anniver¬

it had not known before.

the association's founding,
according to M. P. Illitch, I. C. B.
sary of

President

Board,

Chairman

and

Southwest

Bank,

the

From
„

The

■>

association

natural

gas

and oil... heat, power, petrochemicals

Ingle-

wood.

is comprised

that

■

mean

ever

the following members with com¬
bined
of

totaling in excess
First
National
Azusa Valley Sav¬

resources

$245,000,000:

Bank,

ings

Azusa;

Bank;

Community

National

Bank, Buttonwillow; Home Bank,

Compton: Bank of Encino;
dale

National

Bank,
Bank,

Huntington

west

Bank,

Belmont

delity

Community

Shore,

South¬

Park;

Ingiewood;

Bank,

Glen-

Bank; Pacific State

Hawthorne;

Bank

Beach;

Long

Garfield' Bank,

Fi¬
Los

Angeles; First State Bank of Lynwood;
tan

South

Beach;

Bay

Bank,

Bank

Manhat¬

Northridge;

First National Bank, Orange; Val¬

ley Bank, Pacoima; Citizens Com¬
mercial

Trust

Pasadena;

Savings

Pico

Bank,

Citizens

Bank,

Pico-Rivera; First State Bank of
Rosemead; Santa Monica Bank;
Sun

Valley

National

Bank,

Upland.

reviewing

activities

Illitch

said

First

Bank;

first

the

year's

association,

the

was

Mr.
or¬

ganized for the purpose of bring¬
ing to public attention the role
the
independent bank plays in
support of the economy and

its community and to
the advantage of doing

progress of

Emphasize
business

the

with

home

owned

and managed bank.
'

fls

John N. Adams, formerly VicePresident and Trust Officer of the
First

National

Bank

Portland,

Ore., has been elected Executive
Vice-President and a Director of
the Arawak Trust

Co.,

Ltd., Nas¬

Bahamas.

sau,

Joins National Co.

(Special to The Financial Chronicle)

OMAHA, Neb.—Roy L. Greene,
joined
the
staff
of
The

has

National

First

Company

National

members

Bank

the

Omaha,
Building,

Midwest

Stock

Exchange. Mr Greene was for¬
merly with Merrill Lynch, Pierce,
Fenner & Beane.

TRANSMISSION

VVith Southern Inv.
(Special to The Financial Chronicle)

CHARLOTTE, N. C.
M, Bewell is
Southern

now

—

AMERICA'S

Ralph

connected with

Investment

Co.,

Inc.,

Johnston Building. He was previ¬
ously
with
the
First
Southern

Corporation of Atlanta.

LEADING

TRANSPORTER

(Special to The Financial Chronicle)

Killinger has been added to the

Siegler & Co., Union Commerce
Building, members of the Mid¬

because

Irving Y.

ciates, Inc., 40 West Broad Street.

Staff

—

Lichtenstein has become connect¬
ed with Marvin C. Yerke & Asso¬

ton., effective July 1.
«

Co., Na¬
Building.

With Marvin C. Yerfee

C. Pen-

Inc., 39 South La Salle Street.

Siegler

of Tor-

changed

associ¬

was

000 to $500,000 by a stock divi¬
dend, effective June 24. (Number

shares,

Allan

—

become

formerly with Edward N.
Siegler & Co.

With Leason & Co., Inc.

Fort

Gentry has been associated
investment banking busi¬
over

connected

Joins Edward N.

for

now

Lynch, Pierce, Fenner &
Smith, 116 West Forsyth Street.

salesmeeting held recently

the

Hagan is

CLEVELAND,

Merrill

Joins Walston Co.

Street.

:
i-.-ri'r

National

Englewood,
common

the

Roxbury Drive.

Worth.

$2,000,000 by a stock
effective June 24.

$
.....

joined

annual

Al¬

dividend,
(Number of shares outstanding—
160,00 shares, par value $12.50.)
The

Vice-President at the firm's semi¬

National

500,000

Stock

Bache

(Special to The Financial Chronicle)

JACKSONVILLE, Fla.;—Robert
H.

Union
of

members

has

PORTLAND,
Oreg. — Gerard
Duyn, Jr. is with Walston & Co.,
Inc., 901 Southwest Washington

David

buquerque, N. Mex., increased its
common
capital stock from $1,-

York

Fidelity

staff

HILLS, Calif.—Rich¬

Rawlings

Now With Goodbody Co.

(Special to The Financial
Chronicle)

(Special to The Financial Chronicle)

value $20.)

par

Building,

outstanding —150,000

shares,

Inc.,

Turner,

New

ef¬

(Number

President of Eppler, Guerin

ner,

By a stock dividend, the First
National Bank of Tampa, Fla., in¬
creased its common capital stock
from

ard

With Merrill Lynch

(Special to The Financial Chronicle)

COMPANY
NATURAL GAS
HOUSTON, TEXAS

wider service

to man.

Adams &

The Commercial and Financial Chronicle

(120)

Budgeting for Research
Research, The Procter &

One's

Management thinking that relegates research to expendable
category in hard times and believes it can be recaptured easily
in better times is held to be

simply out of touch with reality
by Procter & Gamble research head. Dr. Tucker agrees re¬
budgets should be scrutinized closely but disagrees

that

budgetary decisions should be permitted to weaken a
that is more dependent on stabil¬
ity than any other organization. The researcher advises keep¬
ing a "cushion" of research capacity for emergencies, favors

firm's research organization

factors

permits "thinking" and growth, and cites three

which research strength

Warns budgets

depends.

experience is

own

should limit research's effort but not direct it

the

level of research effort is

During the last

frequently hear questions ably assured by

ness.

spectacular growth of research in

such

this

partment defend its budget in this
competition?" I feel sure that all
of us who have some measure of

ten

the

years,

country has

seems, only by
trained peo¬

ple.

been limited, it
the availability of

the research de¬

can

managing

re¬

search would welcome all the

help

responsibility

Recruit¬

ing

"how

''quotas"

have been ob¬

for

prob¬

best, and possibly the
only, criterion against which to
judge the adequacy of the research
effort, both in quantity and qual¬
ity. If the flow of new products
and product and process improve¬
ments stays just ahead of the rest
of the company's capacity to ex¬
ploit them, then the size of the
effort is probably about right. If,
on the other hand, pressure from
sales, advertising or manufactur¬
ing for more grist for their mills
is felt very often, that symptom
is obvious, too.
On a long-term
basis, maintenance of this proper

ably

research that

recalling the quote:' By
nature, research is a gam¬

ble; the only risk greater than
doing research is not doing it.

Gamble Company

Cincinnati, Ohio

its very

By DR. N. B. TUCKER*
Director of

research, perhaps consolation is

found

sion
the

the

rate

same

business.

expan¬
at about

other parts of

the

Such growth should as¬

the ability to keep the com¬

sure

pany
covered and protected
the technical aspects of areas

in
of

ther could not

we can get in arriving at a proper
interest.
optimum research expenditureAssume for the moment that we
one that is not plush on the one
are
in an era of belt-tightening,
hand, yet adequate to protect the
or at least of wait-and-see.
De¬
company's future on the other.
laying planned expansion of re¬
But useful guiding principles, de¬
search, or even its curtailment,
fensible on the basis of experience,

facts and figures, are

jectives rather
than limita¬
tions because
the

people

fill them

found

were

hard

Budget

spill-over
didn't

For

realjly
Dr.

worry anyone.

TucKer

ways to accomplish it have domi¬
nated research planning. This state
of affairs

applied, by and large, to
manufacturing industry in general
and in varying degrees to most of
in

the

instance, I have been unable

to find

useful standard

chemical

and

research effort to any

rule-

sales

as a

involved

everyone

What

Three
We

Factors

are,

budget

natural

the design of

waxes,

continuous processes, the biochem¬

oils, the phase
As examples of
techniques of broad applicability
istry

of fats

and

behavior of soaps.

cite radiochemical tracers,

can

course,

concerned

with protecting the strength of the
research

organization.

And
on

that

three
,

familiar pub¬

Thursday, July 10, 1958

measured in per cent and maybe a

few

very

that.

cent

per

real pay-off is

The

in the direction of

up-grading personnel — by train¬
ing, by selection, even by elimi¬
nation of the less productive. The
ultimate

efficient

ment

first.

The

research

the guy who does the last

experi¬
to

contribution

efficiency made by the time saved
experiments he didn't have to

X-ray and electron diffraction, op¬

tical

microscopy, magnetic reso¬
spectroscopy, etc. On rela¬
straightforward
problems

do might be measured, not in per
cent, but by a factor greater than 1.

availability of experts may
good, solid answers in time;
without them the answers may be
too little, too late or even tempo¬
rarily misleading. On more obtuse
problems the difference is often

the short way home—the time for

nance

tively
the

mean

that

between
and

swer

Even
contract

the

really useful

answer

research

Sometimes the long way round

training and development of peo¬
wrung from preoccupation
high-priority work, may well
contribute a net gain to the effi¬
ciency of getting that work done,
Finally, a proper research budget
ple,

with

will and should limit the research

where

cases

an¬

at all.

outside

chosen

effort, but should
size

not

direct it. The

the

budget will be deter¬
by management decision
based partly on research depart¬

developing needed
knowledge, there is strong reason

mined

expert at home, kept
active program of

ment advice.

means

have

current
his

by
in

own

course

(though of
not duplicating) area. He

that

advice

extent by

some

is in

The effectiveness of
will

conveying

measured

how successful it

clear understand¬

is the best channel of communica¬

ing of the importance of the points

tion

insure

that

the

sponsor's

have

just been discussing. If it

needs and plans are most usefully
to the contractor and

that the results of the research

the budget decision are not apt to
be far apart.
The answer that

transferred

are

brought home promptly and effec¬
tively.

tus

It is

quo.

flexible stability

really effective, then the points

view

all

out will

comes

those

involved

probably be about

right.

Stability Is Most Important

that provides for proper attention
to the three points above—growth,

Strength

strength depends heavily
■
fraction of total things:

dollars is the

decisions.

point of reference—sales volume,

search dollars

considered.

such subjects

mean

synthetic

category

nizing clearly the important points
The stability needed by a re¬
to be considered and
describing search
organization is not a static
them so they come into sharp focus
stability, a maintenance of the sta¬
for

quantitative

total assets, net worth, number of
employees, miles traveled by the
sales force, or what-have-you. Re¬

use¬

(and to justify)

the first

expert.

concerned with here is recog¬

are

of-thumb relating the size of the

Expansion and

should

come

Guide Research

Formula to

little

hard to

by.

come

that

to
ei¬

of broad enough

are

fulness to require

reason¬

orderly

organization

niques

selection and training. The organ¬
ization should not be stretched to
the limit in covering areas

judged
essential; people should not be as¬
signed definitive rush projects to
withn 99% of their capacity. There

Robert Hall

Mgr. lor
Blyth in Portland
PORTLAND,

Oreg. — Robert
Hall, Vice President, Blyth &
Co., Inc., nationwide investment
banking
company,
has
been
M.

named

man¬

the

Portland

of¬

ager

(1) An orderly growth plan, tied must be room,
fice,
in
the
individually and
lished ratio, and one can make a in some simple way to the com¬
Pacific Build¬
things are
collectively, for some deep dig¬
case for an extensive research ef¬
pany's growth pattern,. but tied ging, for
beginning to see signs that the
following the literature, ing, according
fort by citing very successful and flexibly
to Charles R.
enough that sizable for training
scarcity of trained people is foeand
generally for
respected companies who report a changes of objectives are neither
coming less acute and, this year,
keeping abreast of the times— Blyth, Presi¬
high ratio. On the other hand, one frequent nor sudden.
dent. Mr. Hall
may be less of a bottleneck than
above all for thinking.
Flexibility
can
also point to successful busi¬
it has been in the immediate
succeeds
(2) Effective recruiting and se¬ that allows
past.
changes of assignment
ness enterprises in the same type
lection procedures.
James F. Mil¬
Second, as anyone who reads the
and location within the organiza¬
of
industry whose research ex¬
(3) Stability and flexibility to tion is
ler, Vice Presnewspapers knows, we are in a
necessary. A situation must
period which has been variously penditures per sales dollar are allow for adequate training of be avoided which stifles a prom¬ i d e n t,
who
has
been
described as everything from a much less. A recently published personnel at all levels.
ising individual by keeping him
compilation of projected 1958 re¬
business readjustment to the. eco¬
transferred to
All of these emphasize the im¬ on an important
assignment be¬
search budgets within the chemi¬
the New York
nomic doldrums.
portance
of
stability, which is, cause he is irreplaceable there
Robert
M.
Hall
cal industry shows a
spread of perhaps, more vital to a research when his
office
of
the
Each of the last four years has
training and develop¬
from 1% to'7% for industry group
seen an increase in the number of
organization than to any other. ment would be advanced by a firm.
averages.
Considering individual Saying the same
Mr. Hall has been a Vice Presi¬
technical college graduates at the
thing another change of scenery. And finally,
firms raises this spread to the
way,
a
research organization is there must be some cushion of dent of Blyth & Co., Inc. for two
BS, and, less marked, at the MS
range from 0.15% to 9%, or 60levels with the new PhD
relatively ponderous in its mo¬ capacity uncommitted to bare es¬ and a half years. Well known in
supply fold.
Added
uncertainties
arise
at least holding its own. The
mentum and sudden sharp twists sentials which
is available for Portland financial circles, he is
sup¬
because
of
different
interpreta¬ of the
steering wheel threaten se¬ emergency programs when they a past president of the Investment
ply situation is, then, improving. tions of
what should fce included
One might expect recession talk
rious damage to the mechanism. arise.
Security Dealers of Portland. He
industries.

and

Today, however, two
different. First, we are

thinking to result in curtailed
Actually, available evi¬

demand.
dence

does

not

support this

con¬

clusion.

Three recently published

surveys

show that,

by and large,
are plan¬
ning 1958 research budgets provid¬
ing for as much or more growth
than they planned in 1957—cer¬
the chemical industries

tainly

not

clear

evidence

that

chemists
are

and chemical engineers
headed for being a
drug on the

market.

Nevertheless, the signs

are

clear that the technical
manpower
market

not

tight.

the surveys did not

enough
of

base,

Perhaps

cover a

broad

perhaps

some

the

respondents
changed their minds.

have

since

the

are

interpreted, it

size

and

individual

growth

corporate

that

seems

rate

the

research

ef¬

fort may be
returning to the realm
of things over which we have
some
control.

Taking all these circumstances
into account,

it is inevitable and

proper

that

research

should

come

under

budgets

closer

than

normal scrutiny, both
by corporate
management and by the research
managers themselves.
And it is
also inevitable that, in such times
as these, the research effort
finds
the competition keen—the
compe¬

tition, that is, in the need for funds
with all other phases of the busi¬
*An
the

address

Chemical

Association,

toward

lars
is

by Dr. Tucker before
Specialties Manufacturing

Cincinnati, Ohio.

for

alone

research

expenses.

decision between

research

plus

versus

dol¬

2x,

be made only by decreasing or not
let increasing the number of
people.

minus 10% which

usually the question.
It is not intended to

imply that

Second,

small number of people
represent all of the experts relied
on

cover

important segment
figures as are available are of technology. It is impossible to
valueless or that they should be prune
many
branches without
ignored. Certainly it is comfort¬ damaging the tree. And, third,
by
ing if one's own budget is in line definition research activities are
an

such

with those of

vocative

competition, or pro¬
sharp thinking

some

if it is out of line either
way.

The
point is tnat they aren't much help
if one is
trying to pin-point his
effort

Whatever the facts and however

they

reported

Director of the Portland

Three factors tend to make this
These are some of the important
Clearly, what is public knowledge so.
First, in research, personnel considerations that management Chamber of Commerce and for
about the experience and judg¬
represent the bulk of controllable should keep in mind when a tem¬ eight years was Chairman of the
ment of others is of little help
expense.
Important savings can porary, intensive economy wave taxation committee.

plus

minus

few

The extensive

sur¬

new

and

expert

keep him
ments

But

absolute

zero,

effort

the size

above
below

and

There is

limit,

which
which

the
it
it

except

research
functions

does

not.

flexibility all along

some

The Portland office is one of the

obviously there is

lower

six

offices

major

maintained

Blyth & Co., Inc., including New

York, San Francisco, Chicago, Los
Angeles and Seattle.
There are
also sales offices in 18 other cities.

the line. It starts with the decision
of what projects and what areas

Wm. J. Mericka Adds

really must be kept alive. If the
budget problem is acute, a tend¬

(Special to The Financial Chronicle)

territory,
CLEVELAND, Ohio — Robert
long time to make ency to lean toward shorter range L. Tufts has joined the staff of
and constant care to goals and to delay, temporarily, Wm. J. Mericka &
Co., Inc., Union

and it takes
an

uncharted

threatens.
no

now

All of these state¬

one.

become

pertinent the

work

may

less immediate objectives

be in order.

the

comes

the research being consid¬
ered is to the basic or fundamen¬

vey

tal end of the spectrum, but
they

each
is

Foundation

apply in
lengths.

Commerce

Building, members of
Stock Exchange.

the Midwest

judgment of what level of effort

percent basis.

of industrial research recently
published by the National Science
concludes

from

its

findings that research budgets still
must

established

the

results of research.

Most scfiemes
which attempt this are of
necessity

arbitrary. For instance, who knows
portion of the

the years

new

profits over
product from

research should be credited to that

research, to aggressive sales, ad¬
vertising and promotion, and to
astute

manufacturing which

duced at
are

Let

degree to all

some

wave

pro¬

a favorable cost?
If we
frustrated by the apparent fu¬

experienced and expert an organi¬
zation, the better it will handle
problems presented to it. In spite
of this, we still
occasionally hear
ribald comments to the effect that
research talent is expendable in

hard times and

can be recaptured
easily when the climate is more
favorable. Such thinking, if it ex¬
ists, is pretty far off the beam.

research

strive
who

needed

organization

have

least

should

one

man

experienced and knowl¬
tility of attempts to develop for¬ edgeable in each area of
subject
mulas
for
determining the size matter of major importance to the
and
evaluating the effectiveness company. In addition, certain tech¬

each

Some

area.

project

research

flexibility

some

roll with the punch without dam¬

only with

age,

some

delay, and to

maintain most of its base for
tinued

growth

Two With Central States

and

(SDecial to The Financial Chronicle)

great

effectiveness. Thus,

has

belt-tightening

usually possible without

loss in time

enlarge a little on the
basis importance of
expertism. It should
be only too obvious that the more

judgment.
So, too, are we lacking in recog¬
nized principles for
evaluating the

what

nearer

MANSFIELD, Ohio
McAfee
are

with

now

vestment

—

Warren

and

Central

Ravman

States

Walpark

Co.,

Marlin J.

In¬

Building.

con¬

With Inv. Service Co.

development.

(Special to The Financial Chronicle)

Especially under such circum¬
stances, there is real incentive for
sharpened thinking about ways to
improve
efficiency.
Operational

Service

efficiency is important—just bet¬

Building.

ter

Colo.

DENVER,
Cole

of housekeeping
details which save the researcher's

now

management

time

and

make

to devote his

easier

for

Purvis Adds Four

him

(Special to The Financial Chronicle)

thinking 100% to the

DENVER,
Colo.
Donald M.

solution of his problems. Economy

—

Allred,

measures

and

Donald F.
Investment

—

with

Co., First National Bank

laboratory

equipment

supplies

may be worth ex¬

Frank,

Searls

amining.

But the contribution of

staff

this

Stout

type

approach

best

Jr.,

have

been

of Purvis
Street.

Glenn

Bell, Samuel

and

Thomas

added

B.
the

Company, 1717

Volume

Number 5758

188

The Commercial and Financial Chronicle

(121)

our

•' ■'.

■:

•.

■

By JOHN DUTTON

Several

I had lunch
who is just be¬
ginning his career in the invest¬
a

days

ago

young man

ment

business.

benefit of

has

had

the

college education in

highly rated middle-western
university; he has served his time
a

in Uncle Sam's army;

over

After
say

You!

you.

busi¬

;

long experience I can
that the attitude of helpfula

thoroughness, and following
through, is something that can become a part of your way of life,

and for the You no longer think about it;
just "go do." Several years

past year he has bebn in training

you
ago

with one of the most highly re¬
spected member-firms of the New
York Stock Exchange. His future

two

lies

folios

running

lions.

Although he had moved to

ahead

of him, and I would
that he has better than an

guess

very

chance of achieving a
happy and successful busi¬

ness

career

average

all

because

began doing business in

way

this

small

with a man who managed
substantial investment port¬

into

several

THE

preparation, plus a good family
heritage to hqlp ; him over the
rough spots.
>
When you have passed the 50mark, and you sit down with the

all

ceived

ness,

complete
the

and

gradually

thorough

securities

study

under

miL

even a

several months.

tacts

and

his

quotation in several

-I analyzed his stock port-

tried

the rest of his stock

con-

New

York; I long distanced friends; I obtained every
scrap
of
available
information,
and I suggested the sale of half
of the stock. He agreed. Then the
in

stock

supervision. I checked tax-exempt
bonds., upon which he had not re-

trust you and to turn their
ness

miles away,

became closer friends and I made

Rely

thousand

firm for many years, we

Your Customer Wants

he had done business with another

Securities Salesman's Corner

with

community from another city

over

mors

continued

advance.

When
had

statements

press.

have

came

just

pending de¬

returned to my desk £
message to call him.
Hi.*

had
just received
about
$75,000 in July income and front

Ru-

maturing

obligations

.wanted me to invest it.

out

sister

reached the public and con-

flicting
the

velopments.

25<

portfolio

before

routine.

returned

me.

called

and

he*

I had her,

The

rest

me—not

—o

—

ket

value

the

PROFITABLE

short

space

this problem.

YOU!"

We decided to hold

PARTNERSHIP
i

son

friend

i»

the*

desk from a two weeks .(-other broker* 1,200 miles
away
folio and we made a few changes vacation in New York and while who had once
controlled his entire
with certain tax savings resulting, there I
called on the president account. He too is a busy man and
Gradually I received more busi- of the subject company.
I ob- he wants roe to do his
leg work
ness and the other firm was ob¬
tained two items that appeared head
work, and he is ready to pay
in the papers that were very en- me for it, as
taining less.
Service, friendship,
long as I do 'it well
and the close proximity of his of¬ lightening while
I was on this.'
"This, my young friend," I said
fice and mine was the edge in trip; I met one other large stock- "is the most
important thing yout
my favor.
holder, and I discussed the whole can do to build an investment cli¬
Several months ago he
called situation with a friend of mine entele that will be
something o£
me
and asked my opinion as to who has been trading the stock
which you can be
proud—remem¬
whether he should sell a substan- Tor over a year.
THREE TIMES
ber
people want to rely upon
tial block of a very closely held & I TELEPHONED my client long
situation that had tripled in mar- distance while I was working on someone,
let; that someone 'be years.

;'/7

many

with him
about his future and his plans, I
suppose you must look like a sage
talk

years,

and

in his eyes, and pos¬
somewhat moth-eaten old-

you

wisdom

sibly

timer at that.

But when the

con¬

versation

develops to a point that
energetic and serious young
man
asks you poirit blank what
you think is the most important
thing he can do in order to build
a successful clientele of investors,
this

I must confess that the

answer

Itij:

this question is a pretty tall, order.

People Need Help and They Want
To Rely on

Someone

In my

opinion, if I were to pick
the most important thing a

out

could

man

ested

becoming

inter¬

were

successful

lawyer, doctor, investment coun¬
sellor, securities salesman, or ac¬
tive in any other field of PER¬
SONAL SERVICE, I believe that
I would place AWARENESS OF
THE

OPPORTUNITY

others

the

most

help

important

motivating factor in

a man's suc¬
cess.
In this world today, it is
impossible for the otherwise pre¬
occupied individual to know
enough to make successful invest¬

decisions.

ment

active

Check

live;
engaged
in

your

taking

care

your

servicing

are

accounts,

family

your

Qtongest

own

that

hours

and

social obligations, keeping up with
the news and seeing your doctor,
dentist

and

tax

accountant, and
and if you are
like most of the rest of us, just
how much time and energy have
you left to spare for the job of
making decisions that are better

going to

left

church,

specialists in each and
field of endeavor that may
concern you?
It is the wise man
who picks a good lawyer, doctor,
accountant, investment counsellor,
and even repairman for his car
and his household appliances. This
is the day we MUST RELY UPON
every

International trade and investment have linked the

their owners;

Americas

understanding and good will.

Time

Show

and

again

and

have found

that the best accounts

are

not the

people who think they know it all,
but people who understand that
the analysis of investment securi¬
ties is

a highly involved procedure
requires the full time of
qualifield men who are devoting

that

their lives to

all

busy
spending

this work.

making

leisure

what

living

ing

care

want

take

United States

tal in Latin America,

ties

exports. In turn, the U. S. buys 40% of Latin America's

expansion and improvement of its facilities. Almost

exports, including many essential raw materials of

half of this

which U. S.

U.S.

production is deficient.

are

private investments in Latin America

all-time

high of more than $81A billion. These

investments, with the technical skills and adminis¬
trative

experience which accompany them, are help¬

ing Latin America to utilize better its inherent
resources, skills and energies; they are profitable to

represents expenditures for equipment of
manufacture; and the additional supplies of

electricity provided by these investments are helping
promote industrialization, create jobs and broaden

consumption.
Business

partnerships like this are bringing the
together in a relationship based on
mutual need, mutual advantage and mutual
respect.
Americas closer

AtC

FOR

can

who

someone

off

our

hands

and

whom we can rely. That is
job for the investment securi¬
salesman

and

Let

and

there

fiie

lowing experience

friends,

the American & Foreign Power

tak¬

know

burdens

how

potent source of mutual

are

of other obligations.

opportunity.
of

are a

System is investing nearly $100,000,000 annually in

FOR MORE

INFORMATION

build

pose

as an

lies

the fol¬
example

clients,

influence

the

win

others

NC.

upon

the

and they

Already one of the largest investors of private capi¬
leading market for
capital goods and buys 22% of all its

and

time

have either in recreation

mutually profitable partner¬

Latin America has become the

Direct U. S.

Help

ship.

others!
Know

together in

opportunities for your business in
by American &
Foreign Power Co., write the Com¬
pany's Area Development Dept.
on

the countries served

TWO RECTOR STREET-NEW YORK 6, N. Y.

Associated electric companies in
ARGENTINA

BRAZIL

CHILE

ECUADOR

GUATEMALA

the following countries:

COLOMBIA
MEXICO

COSTA RICA

PANAMA

CUBA

VENEZUELA

ni>

The Commercial and Financial Chronicle

<122)

be eliminated

Continued from first page

nical

by rate adjustments. In point of fact, the
thorough reappraisal of the railroad

but

time has come for a

and a modification of public
policy wherever needed to permit the industry to get
itself on a sound footing and keep itself there.

See

between 15% and 20 % of all
domestic Intercity freight as against less than 10% in
1939. Operating income is now not very much, if any,
larger than in the last half of the 'Twenties, while taxes
are two or three times as high.
forward, and

carry

now

and

must

serve

even when
profits have
ordinarily faced by business

communities

situation

vanished—a

not

Continued

sonable levies. That the New York Central and the New
Haven

urgently seeking relief from New York City
talking of the possibility of being obliged to

are so

taxes—and

abandon Grand Central Station—is another reminder of
one

of the basic troubles which the railroads of the

coun¬

try face.
But the

biggest problem of all—or at least the heaviest
burden of all—is the wage bill. In few, if in
any other industry in this or any other country has or¬
ganized labor so painstakingly and so thoroughly taken
advantage of every opportunity to levy higher and higher
wages per unit of work performed. "Featherbedding" is
a term that in most minds
by now is indissolubly linked

unnecessary

with the labor relation of the railroads. Here is
tion which the roads

situa¬

quite helpless to remedy in
It is by now part and parcel of

seem

any really effective way.
the whole so-called labor movement which
dares antagonize and

no politician
obviously in the face of such a situa¬

tion

railroad corporation can do very much to

reason

into its relation with its

bring

The railroad problem will
always remain with us. in
acute or subacute
state, unless and until we face the

facts

and

to work to alter them

obviously they

deserve to be altered. Tax
postponement, or even tax

ductions, will not do

re¬

at most than

bring partial or
temporary relief. We must, first of all, bring ourselves to
realize that the railroads
actually do have stiff competi¬
tion in this day of
passenger cars, buses, trucks and air¬
lines. The tendency to oblige roads to continue services
long after heavy losses are incurred must be reconsidered
both as to rates
permitted and the requirement that
.

services

be continued 'in the face of loss which

can

not

the first part of 1953, it beevident
that
the
Federal

from page 3

was
continuing a tight 4
policy. January 15th, eight

Reserve

$22,559,000,000 at the close of the
persistent decline in prices
of Government securities during
The

culminated in

panic in the bond market
Christmas Eve of 1947, when

near

the

Open Market Committee an¬
nounced that the support levels
would

bonds

Government

War

The Govern-

reduced. The U. S. Treasury 2l/2%
of September,

bonds

101

fallen

814

1972 sold as
yield 2.44%. Thus

fear

clear

that

the

Federal

determined

Phases

Second

January

the

seemed

1948 to

1949

December

Federal

the

that

Reserve

continuing its policy and its
restraint.
In
January,
discount

was

rates of all Federal Reserve Banks
raised

from

114%

and

ment of central

demand

there

deposits.

were

city banks

reserve

increased from 20

clear

to 22%

011

Nevertheless,
signs that the

Federal Reserve felt that the bond
market
the

gone

downside.

enough

far

Federal

The

Re¬

Banks in January and Feb¬

serve

made

ruary

had

heavy

purchases

Government bonds

at fixed

prices from the large institutions.
In

1949,

the

Federal

Reserve

prime rate

The bond market

continued to decline and May

the

decline

reached

when losses in
amounted

The

some

much

4th, /
panic

near

of the issues
2

points.

Treasury 2V2% bonds
September, 1972 had declined

by
policies.

about 91

yield about 2.11%.

the advice of the Federal Reserve,

offered

$13,750,000,000

chart, the

iy4;%

term

eral Reserve authorities who

terest

were

of higher in¬
and the Treasury of¬

advocates

rates

ficials,

who were trying to hold
borrowing
costs
low.
Average
yields on long bonds drifted from
2.33% in August to 2.39% in De¬

-A.'..

cember, 1950.
In

3.11

average yield on long-

Treasury

from

2.20%

bonds

increased

January,
% in June, 1953.

•.'..y,• ,'.V,

:•

Fourth

Phase

1952

June

to
K.',

1953

to*

■

July 1954

Throughout

the country
bankers were

commercial

many
anx-

iously scanning the red figures in
their securities portfolios.
A cry
of anguish, which was discreetly.
withheld
made

from
the

the

eral Reserve and

The
not

commercial

ing

bankers

but

also

for

losses

and

they

confronted with

demand

were

paper

Government

securities

was

of the Treasury,

only faced with
their

public,

officials of the Fed¬

other

were

be¬

an insistent *
the part of

loans on
Federal
interest their customers. This meant that
they were
compelled in many
raising margin require¬

January,

the

1951,

continued its pressure on

rates

ments
to

security

75%.

loans from

March

1951

the

Treasury and the Federal Reserve
announced

accord

had

been

reached to the effect that it would
be

the

common

agencies to
finances
debts

mize

assume

the

of both
the successful

purpose

the

same

cases

mands.

monetization

mini¬

sell

substantial

clear

was

losses

these

meet

de¬

few

observers that the decline in bond

prices
that
the

Government's
terms to

their securities to

The
in

had

gone

far

enough

and

something should be done by
Federal

first

policy

Reserve,
evidence

came

change

when the Federal

the

Reserve started to buy U. S. Gov¬
sent up easy money
signals by debt. New Treasury 2%% bonds ernment securities.
Starting
on
lowering
on
March
30th,
the due 1975 were offered for the
May 13 the Federal increased its
margin required on security loans outstanding 2V2%
bonds
due holdings week by week, a total
from
75%
to 50%, by relaxing 1972 held in considerable
quan¬ of
$826,000,000
in five "weeks.
consumer I credit
regulations
in tities by the insurance companies.
Nevertheless,
the
market
was
March, and by lowering in April When the final terms of these slow to
respond.
On June 1st,
the reserve requirements on de¬ bonds were announced the bond
long-term 2 V2 % Treasury bonds
mand and time deposits. Further¬
market broke badly and continued
dropped to 8914,, and the new
more, on June 28, the Board of
to decline until June, due in great
314% bonds sold at a discount of
Governors announced that hence¬
part to the removal of all support 114 points. However, reports be¬
forth the Federal Reserve would of bonds on
April 10.
gan
to spread that the Federal
be

less

active

sellers

Govern¬

ment bonds.

Throughout the year
1949 the F.ederal Reserve seemed

June, 1951, there
AVERAGE

to be

was a

YIELDS

concerned about busi¬

tech¬

LONG

Reserve

T E l\ M

the

throughout

improvement

be indicated by
yield on long Gov¬
ernments from 2.42% in January,
year

may

the decline in

1948

The

2.19% in December, 1949.

S. Treasury 21/2%
bond
September, 1972 had recov¬
ered to about 106 to yield 2.17%,
a gain of 5 points since
December,

1947.

Third Phase January
June
In the
came

improving
was

1950 to

1953

early part of 1950, it be¬

obvious

that

and

not headed

business

for

was

this country

that

depression.
commodity prices were
starting to turn upward and talk
a

Further,
was

heard

than
serve

lower

about

deflation.
Banks

inflation

The

continued

holdings of U.

rather

Federal

Re¬

report

Govern¬

ment securities.
On

June

27,

1950,

the Korean

SOURCE*. ANNUAL

REPORT

had

TREASURY

activity, which was showing
signs of weakening than inflation.
Government and corporate bonds

ness

showed

between January, 1950 and '
continuing tight money
In
July,
the discount June, 1953, this issue had declined
from 106, or about 15 points, or
rates were
raised
from
114
to
a
net decline taking into consid1%%.
eration
interest
of
about
614
In August the Treasury, against
points. As may be seen from the

tion

February the reserve require¬

was

the

con-

commer¬

Thus

clearly

early months of 1948, it

raised

banks

April the

Reserve

prevent infla¬

net

from 3 to 314%.

third

loss 13-month notes. Since the market
taking into consideration interest was demanding a 1%% rate at
of about 414 points.
As may be least, their notes were extremely
seen
from the chart
below, the unpopular and a large amount
average
yields on
long-term had to be bought by the Federal
Treasury
bonds increased from Reserve Banks. Furthermore, dur¬
2.08% in April, 1946, to 2.38% in ing the following months the bond
December, 1947. Clearly this was market drifted lower due in great
not the time to buy bonds.
part to the uncertainty caused by
the controversy between the Fed¬
points,

;

sharp¬
Loan demand

commercial

cial

started.

United
States, prices of many items and
particularly wholesale commodity
prices began to rise. To observers
of the money market it seemed
was

the

tinued and

World War spread in the

year.

the first phase was

raised

Banks

ment bond market declined

due

employes.

Let's Face the Facts

In
came

Forecasting Bond

locally owned. What is more, the railroad companies,
of course, pass through many jurisdictions and must pay
many local taxes. The fact that lines passing through the
State of New Jersey are now earnestly pleading for time
to pay their taxes to that state attests to the role local
taxes play in the operation of the roads,
although what
really is needed is hardly postponement but more rea¬

market f

bond

free

and higher interest rates.

ly during January.

were

not

ward

their discount rates.

Of course, some p^rt of the troubles of these com¬
panies is inevitable in the circumstances. A railroad com¬
pany necessarily operates with very large fixed invest¬
ment—fixed not only in the ordinary sense, but fixed in
the sense that it can not be moved in any great degree
from one place to another and has, moreover, usually
stimulated the growth of industry along its lines which
now is dependent for its existence upon a continuation of
the road's services. As time has passed, moreover, cities
have grown around terminals with the result that taxes
are very burdensome upon property that once was located
in hardly more than suburbs. All this renders the opera¬
tions of the companies inflexible to a degree compared
with competing motor vehicles which have access to free
roadways.
A'

The railroad companies, in any event, are "rich" cor¬
porations in the popular mind, and therefore natural ob¬
jects for heavy local taxes, the more so since they are

conservative k
Secretary of Treasury, it became
the general belief of bond market
analysts that the trend was to- ,*.
appointment of

Federal

during the period from April, 1946
to December, 1947 this issue had

Corporations

and

Reserve

low

his

money

organizations.

"Rich"

demand for commercial '

tion of President Eisenhower

will not fill the bill.

railroad companies was out

market,

bond

the

substantially lower than at
In 1952 there developed

strong

A publicly owned railroad industry or a railroad
industry kept going by contributions from government

the effect that effective

rally

loans. Furthermore, with the elec-

to pay.

theory among the economists used to be to

competition between or with the
of the question, and that as a
result extensive, not to say, complete regulation was in
order. Well, one need but to look at the facts as now cur¬
rently published to see that the railroads have a great deal
of competition. It is evident, moreover, that this com¬
petition plays a major part in the difficulties now being
encountered by the railroad companies. What is more it
is found upon closer analysis that public policies in one
way or another tend to -subsidize this competition. Again,
adjustments to conditions such as would normally be made
by business faced with such a situation are not infre¬
quently, we had almost said regularly, denied the roads
by public authorities on the ground that this branch of the
transportation industry is affected with a public interest

must have the railroads.

Thursday. July 10, 1958

the start.

They are essential, and are likely to remain so for a long,
long time to come, indeed in perpetuity so far as any one
can see into the future. But we need a railroad industry
that is able to stand on its own feet and give us the serv¬
ices it is designed to furnish for a price we are willing

Plenty Competition Now
Orthodox

it is true that

course

by the end of the ^ear prices .*

were

industry in our economy,

| As

T REA.S U R Y

shifted

BONDS

1946-1958

easy

Volume

Number 5758

188

REPORT1

CONDITION

The Commercial and Financial Chronicle

(123)

THE
^
■

120

the

New York,

Broadway,

business

New York,

June

23,

1958,

published in accordance with a call made
by the Superintendent of Banks pursuant
the

the

provisions

State

the

New

Banking

Law

York.
ASSETS

Cash,

balances,

banks

and

with

trust

other

compa¬

nies, including reserve bal¬
and

ances,

process of

United

cash

items

collection--—-—

States

$1,732,518.88

Government

obligations,. direct and
guaranteed —.—__—"
Corporate stocks
^

435,653.48

Leasehold

improvements..;—

296.436.21

Furniture

and

450.513.98

Other

fixtures.—

60,000.00

assets TT-—660.933.14

TOTAL ASSETS
LIABILITIES

Demand

deposits

indi¬

viduals, partnerships, and
corporations
Other ..liabilities

——-

Dealer-Broker

Addressing Service

publishers of "Security Dealers of North Amer¬
we
have a metal stencil for every firm and
listed
In
this publication,
which puts us In
a
position to offer you a more up-to-the-minute list
than you can obtain elsewhere

ica,"

bank

There are approximately 9,000 names
States and

States

900 in

Canada, all arranged

In the United
alphabetically

and Cities.

Addressing charge $7.00 per thousand.
Special N. A. 8 D. list (main offices only) Arranged
Just as they appeared in "Security Dealers.**
Cost
for addressing N
A S. D. List, $8 00 per thousand.
We

can

small

also supply

additional

the list
charge

gummed roll labala
•

Herbert D. Seibert & Co., Inc.
Publishers of "Security Dealer$ oj

25 Park Place

—

REctor 2-9570

North America"
—

New York City

The Commercial and Financial Chronicle

(124)

Continued

teresting

from first page

the

that

note

Cana¬

dian investment abroad at the end

billion

Of 1056 of $7.2

large

Canada's Postwar Growth

the United States in¬

vestment in Canada in
The

And Economic Prospects

where

private

Canada

in the housing industry

billion

$12.4

has

been

ex-

period may be found in the penfjecj since 1946. Manufacturing

national pride which has led some
to believe that strained economic

years

Islands.
its

course

Commission

exhibits

During
investigation

received
which

filed

covered

phases of the Canadian

Thursday, July 10, 1958

published

Final Report to be

later

will also

There

date.

published separately more than
30 separate studies each dealing
in detail with different phases of
be

330

some

were

which

and

the
the

all

the economy.

economy.

As set forth

In December, 1956, the Commis¬
sion
submitted
its
Preliminary

Report

are

predicated

the Preliminary

which are
the next 25 years
several general

forecasts

the

over

fact that

relations exist today between

Goose Bay, Knob Lake,

Seven

submissions

1945.

expenditures

been

has

amount

largest

capital

almost

was

Quebec
and

ada

the

and

careful

analysis

reveal certain

the

Can-

States.

United

facts

problems, particu¬

war

the direct investment of

United

the

Canadian

States

during the past several 0£ .,jj ^jnc(s have amounted to
Canadian tourists have <.94 billion and public utilities
money in the United
$6.7
billion. Although expendi¬

States

Gordon

but

Canada

the

over

least will

need

decade

not less

and

foreign capital to develop her reand industries. The major

sources

problem. Canadian participation
in the ownership on a minority
bas.is in the United States direct
investment, js apparent to the vast
majority of the U. S. corporations
and
it is my firm
belief when
Canadian investors are ready to
absorb this ownership, it will be
offered to them.

foundations

The

for

Canada's

Post-War Development

durittg

War

World

were

when

laid

the

country, because of the intensive
utilization of its natural

became known

British

the

period,

shown in Exhibit A, the

Product

Gross National

exports

the Arsenal of

Empire^During this

were

times the

doubled;

than

level and

1939

three

imports

doubled; the Gross Domestic

were

Investment

construction,

ma-

diinery and equipment more than
doubled, and prices, wages and
consumer
spending
were
conrp"
trolled by rationing and price re

recession

the

States always has had im-

the Canadian economy. The current decline is no exception as the figures
in Exhibit B clearly indicate. In
many respects the pattern is the
same as in the United States with
industrial production m
of

quarter

retained

rationing,

Canada

war

profits

excess

the first
lower

corresponding period

1957; with an.Jncrease in unemployment and with a decline in

carioadings

and^ aggregate

pay-

rolls., fa in this country, however,
domestic, trade,, consumer prices

arid

earnings

weekly

corded small increases

have

in the United States with

the

that

result

the

conversion

wartime

to a peacetime
carried out more
smoothly. When such restrictions
were removed, however, deferred
customer
spending
resulted
in
greatly enlarged imports from the
United States, and foreshadowed
to some extent the gain in the
standard.of Hying
which lay
from

economy

was

ahead.
Canada

end

the

war

over a year

There

two

are

important aspects

0f the current recession in Canada
which

wilh

tj tj

nnraf,ranh«

industries such

da's

preliminary conclusions of the
Royal
Commission on Canada's
Economic Prospects, in my opin-

level

high

in contrast
Gross

borhood

Domestic Investment in construe-

National

Product about $76.1

tion and

Ron, agriculture will be far less
important to the national economy
tha|1 at the present time, while
natural resource industries would

and

almost

was

estimated

the

plant and equipment
great for 1958 as it

new
as

The

1957.

base

metal

in_

dustry has been severely affected
by a decline in world wide metal

prices

and

the

expansion

the

import
are

restrictions

which

today

in effect in the United Slates,

mentioned

the

preceding
aragraph. the estimated nrivate
paragraph, .the estimated private
and public investment in Canada
for 1958 is only 2.3% lower than

The

the

that

diets

dose

decline

private

offset the

spending

the unprecedented

ulated

growth

1950. The post-war develop-

amce

menhas

revealed by certain key

statistics

shown

Exhibit A.

million

almost five

than

of 3%

greater
-excess

National
111

1957

1945,

Product,

million

gain

The

year.

Gross

$31,1 billion

with $18.2 bil$11.9 billion in

compares

mentai

govern-

surpluses. It will be noted

that the total Gross Domestic
vestment,

1957

Today's population in Canada of

1955

the

for

the

inclusive

In-

1946

years

am0unted

$59.1

billion and for 1958 $8.5 billion or
a

total

$67.6

1946

years

average

1950

billion.
1949

For

the

yearly

$2.7 billion and for

was

1957

dependent upon the inflow
0f new foreign capital and at the
end of this period
the country
be less

capital.

$6.0 billion.

A study 01 the various Exhibits

Report 0f the Royal Conunisi
f
:
ston on Canada s Economic
By

Commission. The broad purposes
of this Commission were set forth
first

the

paragraph

read

Order in Council which

...

Foreign

period.
risen

tial

ex-

trade

118% since 1945

component

economy with

which
is

the

war

has

essen-

Canadian

exports amounting

to 15.6% and: imports 18.1% of the

6.7%.

only

must

$4.0

pet capital

billion

"The

years of the
was

very

post-war period there
extensive outflow of

capital while the net

capital inflow, particularly in the last three
years, has
been very extensive,

—$792

$14,654

$4,573

$9,617

$14,298

510

881

1,242

1,289

4,520

292

5,163

5,705

5,915

4,649

—

(1949

529

-4-

254

179

166

11.4%

100)

-100)

1.6%

3.2 %

3.1%

4.3%

99.2

132.1

211.2

225.6

229.4

63.2

75.0

118.1

121.9

124.3

....

_—

32.9

66.5

106.0

180.5

194.5

$23.44

$32.04

$44.84

$64.18

$67.70

$688

.^4.

Earnings

Dollars)

NOTES—'-As

$1,228

$2,508

$3,260

$3,024

—

June

Canada

t Based

monthly

upon

t Before

average;

taxes.

Canadian Statistical

Sources:

Review—April, 1958 and 1957 Supplement by DominiOttawa and various editions of Public and Private Investment

ion Bureau of Statistics,

published

Department

Trade

and

Commerce,

Ottawa.

EXHIBIT B
Statistics of Current Economic Trends

: f

;

First Quarter—Average
Index

J9.->7

Industrial Production

1938

Change

1935-1939=100)

(Unadjusted:

—

4.9%

279.4

257.1

—

8.0

Non-durable

238.4

225.3

—

5.5

Durable

343.5

306.7

—10.7

261.9

272.2

3.9

312.1

332.7

Composite

279.0

Index

Manufacturing

—

Mining

Electricity and Gas

265.3

6.6

First Four Months

Foreign

1957

Trade

(Millions

Balance

S889.5

$1,468.7

$887.3

1,896.5

Trade

1,422.0

1,643.0

1,179.6

—$532.5

—$174.3

—$292.3

—$405.5

——-

First

Trade

(Millions

Department

(Thousands

2.8%

$3,302.2

249.5

263.8

5.8

267.7

263.5

—1.6

Sales
'■

1958-

1957

Mair. 16

job

Apr. 20

5,373

5,442

5,^17

343

with

Persons

Change

$3,2ll;5

Sales

Store

Automobile,

Quarter

1958

i«r»;

Dollarsi

Sales—Total

Retail

U. S. A.

Total

U. S. A.

$1,491.0

Imports

Domestic

-1958-

•

Total

Dollars)

Exports

306

590

—

Unemployed seeking job

Mar. 22

Apr. 19

5,453
516

Council

had

have

the

1957

1958

Index

before

228.1

182.6

167.6

(1949=100)

Consumer

120.5

Month

Earnings

examine

initiate,

and

growth

the population, the direction and
of

internal

and

3.1

oPFdbruary
Change

1958

183.8

$66.66

$69.23

Jan. 1 to

1957

Loan

Companies

Change

$746.5

359.1

—

Review-—April

Dominion Bureau of Statistics, Ottawa.

1958

and

—

1.2

EXHIBIT

■

Private and Public Investment in Canada

Together With Total Capital Inflow and Capital Inflow From U.
1

■

-v'

Total

Capital

Capital Inflow

Inflow From

Private

Year

Public

Total

Amount

$—363

—19.7

—14.2

U.S.A.

—21.3

Percent

$607

$1,286

$417

$1,703

1947-

1,941

548

2,489

1948—

2,372

803

3,175

—451

1949

2,559

943

3,502

—177

5.1

589

3,815

334

8.8

403

11.3

1946

—

1,135

393
''

1950

2,818

1951

3,338

1,239

4,577

1952

3,701

5.285

—164

1953

4,208

1,584
1,633

5,841

443

ments for
capital."

1954

—

517

social

(Millions of Dollars)
'
'

ternal trade, progress in standards
of living and expanding requireand

published

Supplement

1957

997

industrial

0.8%

363.3

ex-

our

7.6%

—

1958

$752.5

Statistical

Canadian

Source:

1,202

Outstanding Mar. 31

Companies.

Finance

Small

3.9

Change

1958

1,300
.'*•

Credit

0.5%

—

May 7

1957

(Thousands)

8.2

—

184.7

(1949=100)-

Carioadings

and

distribution

—

1957

Aggregate PayrollsWeekly Earnings

0.1%

124.3

—

(Millions)

them

Change

228.4

Metals

it is in the national in-

nature

(1935-1939=100)

Non-Ferrous

Privy

report from the Prime Minister
stating that it is desirable that the
Canadian people should be more

the

March Average

Prices

Sales

Committee

remembered, velopments in productive capacity,

however, that during the first four

-—$924

(M)t

(1933-1935

(Millions

follows:

publish studies of Canada's economic potentialities, including de-

1957 resulted in

—$60

inflow

was

5,628

$1,632

y-;;'

Consumer

and

was

$4,836

5,712

the

ucts,
and for. 1957
alone
larger than the total capital
penditures
for the
entire

1957

total

$4,788 '

3,180

$2,578

Jobs—Seeking
Unemployed

General

28.5% of the Gross National Prod¬

the

$3,120

1,584

Cent

Weekly

terest

billion

that

$3,216

Sales

Force

Available

Wholesale

Aspects

capital expenditures between 1946

$8.7

show

$1,383

ment

will

$1,372

Aggregate Payrolls (1949=100)—

the Preliminary

and that

Labor

La bor

oil

fully informed of the long-term
economic
prospects of
Canada,

and

$360

8,721

(millions)

■■

graph

1950

6,159

—$693

Corporation Profits i

exporter of

1945. The Gross Domestic Invest-

5,818

Sales*.^

Store

Consumers

foreign capital will be increased
considerably in absolute amount,
it
<„;ii
nnt
inpr^spri
in
vplnr win not be increased in rela
tive terms. By 1980 Canada should

referred to in the preceding para-

lion

Trade
Retail

Wholesale

new

order of the Privy Council dated June 17, 1955, there was
essential to the sound industrial- construction and
machinery and created a Royal Commission which
ization of any country. It was the
equipment for the years 1946 to later became known as the Royal
discovery and subsequent devel- 1953 ancj a breakdown of
personal Commission
on
Canada's Ecoopment of vast reserves of both savings, corporation
savings, de- nomic Prospects 01* the Gordon
preciation allowances and

3,617

will be

1980

times

three

Comments

almost

2,106

$924

bil -

amount

invested in

capital

8.4% and housing of 15.5% which

1,283

23,295

(millions)

Wages f

important.
preliminary report also pre-

might possibly be

enough

8,024

Without

considerably more

the record established in 1957 and
is well above any other post-war
year.
Estimated expenditures of
$8,521 million for 1958 reflect an
increase in public spending of
was

3,815

—$126

population

figure and although the amount of

Private and Public Investment

1,703

—__

(millions)

will be in the neighof 27 million, her Gross

periods

$765

Prices t

background of Cana¬
Post-War Development, the

very

23,262

$168

Trade

Department

the

With

the accompanying Exhibit F and
predicts that by 1980 Canada's

substantial declines in other

$29,986

17,325

Inflow-

Dollars

Domestic

Royal Commission's Conclusions

being maintained

$31,066

$18,203

15,621

Balance

Per

16.6

$11,850

(millions)

Exports

Total

1957

16.1

$5,707

Imports

Civilian

1956

13.7

756

Current

Total

1950

12 1

Investment

Dollars

Foreign

1945

9,571

;

(millions)

Dollars

Net Capital

pulp and paper.

ness: exports are
with

11.3

(millions)

Dollars

1949

base metals and

upon

Product

Domestic

Current

Exhibit

basic^Canadian

National

1949

preceding

the

shown

flre

(millions)*

Current

Gross

jon, become more understandable,
These conclusions are set forth in

entirely de- about 13%.
pendent upon foreign imports for
Schedules C, D and D1 set forth
tier requirements of crude oil and considerable
details with respect
jron ore, two commodities vitally
to capital expenditures for new

crude oil and iron ore which stim-

Gross

1957. Sta-

regard to the jndus.

described

tries

quite different from
previous periods of declining busiare

almost

was

million

to 22.3

1946

based

1939

Population

industry where production has inrp
„
■
from
1 k mjnjon
tons in

re-

ago.

siderably longer period than was
case

probably the most im¬

taxes and price controls for a con¬
the

'the"develojornenTof^hVYron'*ore

about 5%

1.958

in the

than

oil industry has been retarded

of the

end

At the

expended

pressive of any phase of the post¬
war
development in Canada. A
similar trend has been .shown,.in

■

frictions.

EXHIBIT

industry apart from hous¬

been

have

.followed

natural

perhaps

were

amount

largest

any one

portant repercussions on

resources

and expansion
of its industrial
plants for munitions and supplies,

billion

Statistics of Post War Expansion

ing and public utilities, the results
United

and

petroleum

of $4.7

gas
the

Performance

business

Any

recognized,

Commission

for

tures

Canada.

Construction

Unique Exports and

the

States'

United

the

than;

tourists have spent in

corporations in

subsidiaries

will

spent more

larly with regard to the large in¬
crease

which

951

3.1

—

849

7.6

904

_ach

National

other

should
United
Canada
souices

Product

best

continue
States
s

1957.

customers

requires

abundant

and.

The total inflow from the

ar! States ?uri"gthe eni}r? Period has
amounted to

and

since

many

natural

United

the

of
re-

$10.9 billion from all

sources.

During the 18 months following
the

creation

public

At the end of 1956 the total foreign

investment

Canada

was

7.7 r"

432

807

!>f

hearings

this

many

products

direct

^kich ^dessential to her capital porations in
A further

aeyeiqpment.

Chnadiam prosperity in

proof

the post-

57 %

held

were

cor-

Territories as Whitehorse,
Norman-Wells, Aklavik, and Yel-

controlled Cahadian lowknife

subsidiaries principally subsidiary

ies of U. S. corporations. It is iny
'«>'•

•>

and

Eastern

trip

visiting among others such • Strategic - points - ift- Labrador
and
K"

...

1,663

6,350

698

10.9

1,035

5,835

2,189

8,024

1,372

17.1

1,640

6,128

2,593

8,721

1,383

15.8

$42,913

$16,189

$59,102

$3,975

6.7

$8,158

$2,711

$10,869

$—1,404

34,755

13,478

48,233

5,015

10.4

8,139

$42,913

"1957

the larger Canadian cities. In
the Commission made a

addition

represent west

ownership of foreign

5,620

4,687

4,040

$16,189

$59,102

$3,975

6.7

$10,863

$5,710

$2,811

$8,521

1,550

Commission

manufactured $16.7 billion of which $15.4 billion Western Arctic trip visiting such
Canada has natural was long-term and of these long- places in the Yukon and North-

Products while
adYaildaf^ *n sporting from the term investments
United States

1,580

1955
1956

Gross

;

•

1946-49—

1950-57

—

1946-57
1958 Estimate

"Subject to revision.
Source;

Various

and

Private

Public

$10,863

9.6

—

editions

—

•

Investment

$2,724

...

Canada

published by the Department of Trade and Commerce arid Canadian "Statistical
Review—April, 1958 and 1957 Supplement published by the Dominioir Bureau
"of" Statistics.
t
.
,
.
,
....
.

j* "

cV*

(125)

the more important
(2) There will not be another
the* following:
* depression of the kind which was

assumptions;
of which

are

there

during the period under review.
s'"

' f <•

Gross and

Net

Domestic

Expenditures

194530

••

r f

■

wJ r;

•

i1 '

- .■

for

New

Plant

Gross

Net Do¬

Increase

in Inven¬

1946—LU —j

Other

Total

Inllow

Expend.
New Plant

mestic

tories

Savings

$519

—$80

$439

$2,035

—149

798

605

111

716

2,006
3,593

2,409

4,309

3,175

—418

1949—

4,023

231

116

347

3,676

3,502

—174

1950—J—
1951

—_

1953

1954

1955

887

3,485

3,815

1,620

168

1,788

4,053

4,577.

524

5,629

310

—189

171

5,458

5,285

—173

5.841

443

5,620 '

427

—
,

5,984

591

586

5,398

5,104

„_

—275

186

—89

5,193

—_

510

—114

396

5,673

6,350

677

7,326

939

—124

815

6,511

7,900

1,389

$54,435

$6,957

—$103

$6,854

$47,581

$50,257

$2,676

6,069

1956— __i.

,
1

Capital Inflow

Outflow (—) From

Year

U. S. A.

U. K.

Other

Total

1946

$625

—$651

—$306

—$332

—884

—309

—612

—223

'--418

—551

—193

,—174

1.176

1947—

384

—207

330

-491
—221

810

—/

524
—173

443
427

774

—264
—394

677

1,617

—241

1;389

—$4,488

—$2,016

$9,180
National

and

National

41.

and

49,

Accounts-Income

1926-50,

and

Ottawa.

Statistics,

Bureau

$2,676

Tables

7, H,
Expenditures 1950-56, Tables
Economic and Development Divi¬

Expenditures

Both published by the

54.

Dominion

and

Accounts-Income

Cash Available

Undistributed Corporate

Profits and Governmental

Total

Profs.

Deprec.

Corporation

$988

$392

$1,380

$411

$436

$847

426

1946__.

452

878

619

596

$2,227

1.215

1947

•

2,093

1950

1951

511

1,520

788

687

1,475

2,995

1,581

607

782

1,389

2,970

678

1.323

844

852

1,696

3,019

1,390

768

2,158

721

1,017

1,738

3,896

830

2,355

667

1,155

1,822

4,177

1,009

„

1949

576

1,525

1948—

1,005

645:

••

1952

„

1,588

914

2,502

754

1,353

2,107

4,609

891

985

1,876

624

1,535

2,159

4.035

1,071

1,042

2,113

910

1,661

2,571

4,684

1,430

1,089

2,519

1,030

1,873

2,903

5,422

$11,968

1953

$8,237

$20,205

$7,975

$11,947

$19,922

$40,127

1954
1955

1956

-Govern men ts-

Deficit

$75

$172

1946—

$2,474

$247

mal

lion.

the

106

1,353

4,372

omy.

1,820

125

.1,945

5,841

1952-

1,317

135

1953-

1,224

151

1,452

5,984

1954-

916

1,069

1,210

175

1,385

6,069

1,715

189

1,904

7,326

$1,336

$14,308

39,
48,

and

Expenditures

$54,435

1926-50,

Tables

and 41.
National Accounts-Income and Expenditures 1950-56, Tables
49, and 54.
Both published by the Economic and Development Divi¬

Dominion

sion,

Accounts-Income

Bureau

Statistics,

Ottawa.

EXHIBIT

Statistics of Certain Industries
Based

Physical Value of Production

Upon

Largely

—Year—

1939

Housing

Lumber—millions bd.

Sawn

$267

$833

$42

$44

3,977

—

5,083

17,830

1,671

1,692

356

335

166

tons—

Utilities—Electric

of H.P.)

8.3

—.

28.3

(Ml. K.W.H.)

Electricity Generated
Petroleum

6,252

10.2

19.8

41.7

90.6

"7.8

Steel

223

663

639

691

220

1,549

22,303

2,327

5,038

424

375

1,021

2,563

5,111

132

365

558

1,048

pects"

608

368

721

states

226

Production—M

Base Metal

Imported—mil. lbs.

Ore

192

378

tons

Asbestos—M

Copper—million
Nickel—million
Lead—million

Zinc—million

lbs.

Sawn

343

358

12,540

28,356

2,032

2,309

3,977

Newsprint—M tons
Miscellaneous

5.082

550

834

752

6,616

io"m

2,927

4,162

C.396

519

474

7,128

14,880

30,144

2,108

2,441

218

Manufacturing

Refrigerators—thousands
Washing Machines—thousands

by the

348

604
10

tons

Vehicles—thousands
Canadian

721

457

1*552

2,327

5,038

424

375

271

412

sets—thousands

Steel—thousands

270

115

104

Radio—thousands
Television

558

4,166
-

Cigarette Sales—millions

lished

820

4,416

Paper Industry

Lumber—millions bd.

Source:

470

2,832

23,160

ozs.

Wood Pulp—M tons__

Motor

395

5,100

ozs.

Silver—thousand

364

354

389'

lbs.

Gold—thousand

Lumber

tons

Industry

Aluminum

Statistical

155

Review—April

Dominion 'Bureau of

Statistics,

1958

and

Ottawa.

1957

at
in¬

the

seems

reason¬

that in competition

assume

products

United

States

manufactures, Canadian industry
will obtain a slightly larger share
of

industrial

the

than

market

Securities

the election,
1958, of Louis

Co.*; Inc.

announces

effective

July

Gerald,

Vice-President. Mr.

1950 graduate of Co¬
lumbia University, has his office
at

160

has

Broadway, New York.

represented the distributors
Development Mutual

Atomic

Fund, Inc. since 1954.

First Gaiifornia
Names Bleiier to Board

does at present.

19%

1980 could reach

sectors

the

econ-

and

capital sincedl954 has
increasing rapidly.. , Several

been

forecasts

for

subject-are

Supplement

pub¬

the

future

follows:,!

this

new

capital invested in 1980 will be
'dose

three

times

the

1955

(b)

During the next 25 years
the amount of foreign capital
will be increased considerably,
in

in the

G. N. P. of about

3 times.

The Commission's study en¬
"Canadian Energy Pros¬

(6)
titled

water

81%

for this report,
that oil, natural gas, and
power in 1980 will supply

prepared

Canada's energy require¬

ments, while coal will supply 16%
and nuclear energy 2%. In 1953,

production and between one-

and-a-half

and

twice

Canadian

absolute

not

but

relative

ports

pendent upon
foreign capital.

inflow of
It is not impos¬

new

of the pe¬

sible that at the end

riod the country might be a net

exporter of capital.

(10)

Many

mitted

capital.

outlined

Commission

sub¬

were

Commission

foreign

aspects

exhibits

the

all

The
three

amount

ciable

appre¬

(between

20%

25%) of their equity stock
Canadian

should
of

sell

should

include

directors

investors
on

their

and

alone in 1980 will be

New

Stock

York

Bache

Exchange

joined

Co., has

Vos &

Co., New York City, adver¬

tising

agency, as
and
sales

visor

account

super¬
consultant
for

ing

Before join¬

Mr. Friedlich
had been New York advertising
sales manager of "Fortune Maga¬
&

Bache

Co.,

zine/'

Swiss American Corp.
Names Officers
Otto

American

Herzig, Farber & McKenna
Formed in New York
17th, Herzig, Farber

members of the New
Exchange, will be
formed with offices at 39 Broad¬
& McKenna,

Stock

New York City. Partners
will be Philip R. Herzig, Stanley
way,

D. Y. Nitake

South

San

Pedro

been

Street, New York City, succeeding
becomes
chairman
of
the
board.
Joseph
George N. Lindsay who

Straessle, formerly chairman, has
been elected vice chairman.

Henry Stravitz has been elected
Vice-President of the

Executive
firm.

vigilance
Final victory
over

cancer

will

come

from

the research laboratory.

there

are

Many

cancers can

when

Bat

victories today*

detected

be cared

early and

treated promptly. VigUanc#
Is

the

There

key to this victory.
are

signals

seven

which might mean cancer.

could

York

has

of the Swiss
Corporation, 25 Pine

president

Vigilance in heeding them

pendent Canadians.

As of July

Neufville

elected

boards

number of inde¬

Opens

(Special to The Fin\ncial Chronicle)
consumption; natural gas 15 times
LOS ANGELES, Calif. — David
the 1955 output,
or about 50%
Y. Nitake is conducting a securi¬
more than domestic requirements
in 1980. The net export surplus of ties business from offices at 202

oil and gas

the

terms.

Farber, and Thomas X. McKenna
petroleum, natural gas and water who will
acquire an Exchange
power supplied 54% and coal 39%.
membership. Mr. Herzig is a part¬
By 1980 the potential oil output
ner in Brimberg & Co.
is estimated at about 10 times the
1955

Frifedlicn, recently direc¬

of sales and mechandising for

tor

financial advertisers.

figure.
'

Agency

Bruce

firm

u,;..

The total amount of

(a)

and

492

tons

immigration 100,000,

1980 agriculture should
for only 5.7% of the total

increase

Production—.M

Ore

billion,-.by
1980,

Canada"

'494

Industry

Iron

$39.9

prepared for this re¬
port, the total value of the mining
and mineral production by 1980
may
be
about
3l/2
times the
present level, compared with an
in

505

with

sidiaries

123

cu.

rate

same

On balance it

ent.

able to

ing exported.

1,532

Production—Ml.

Gas

increase

12.8% in
following objectives with respect
1955; resource industries, 15.4% to the
operations of foreign con¬
in 1980,
an increase from
9.9% cerns that do business in Canada.
in
1955; primary manufacturing
(a) Whenever possible they
would decline slightly, but sec¬
should
employ
Canadians in
ondary manufacturing should ac¬
senior managerial and technical
count for 25.3% of the total output
positions;
should
retain
Cana¬
in 1980, up from 21.6% in 1955.
dian
engineering
and
other
(4)
According
to
the study,
professional and service per¬
"The Outlook for the Canadian
sonnel,
and
should do their
Forest
Industry" prepared for
purchasing
of
supplies
and
this report, production of forest
equipment in Canada.
products should nearly double by
(b) They should publish fi¬
1980 although the proportion of
nancial
statements
and make"
this production which will be ex¬
full disclosure therein of their
ported will be slightly smaller
Canadian operations.
than the proportion currently be¬
(c) The larger Canadian sub¬

3,000

Domestic Oil Consumption—M bbls. per day

Product

day—

per

P. by

various

bbls

Crude Oil Production—M bbls.

Natural

~7.3

Natural Gas

and

Crude Oil Reserves—mil.

should

expected
secondary

the total demand by 1980 may be
close to three times that of pres¬

(5)
According to the study,
"Mining and Mineral Processing

(millions

Power

470

1,872

11956.

municipalities.

Water

272

996

•

Building Bricks—millions

Iron

1958

$60

Permits—millions4

Cement—thousand
458

1957

Industry

Building

Public

-FebruaryJ 957

1946

lor

the

bil¬

output in contrast with

5,104

1955-

account

5,629

1,375

National

billion.

1,247

National

demands

the

in the G. N. P. In this event

Gross

$29.9

was

annum

and net

num

the

Source:

Canada.

crease

the

the productivity
factor is increased 3.%% per an¬

1951

per

$76.1

4,023

$12,972

about

per

1975, $62.0 billion, and by

3,304

1956-

75,000

Canadian

1956,

should

4,309

153

that

If the net immigra¬

Product

Gross

1965

1,053

averaged
and if the rate
of
productivity increase is be¬
tween 2Va% and 3 *4% per annum

1,314

•

living

If net immigration

75,000

1,211

1950—

38,

(2)

National

974

forces

and current trends of nor¬

growth.

1.141

1,236

1949_.

•

Atomic Bevel. Sees.
Atomic Development

Vos

1947__
1948—

$85.2 billion.
/
By 1980 there should be a very
considerable" change in the dis¬
tribution of total output among

Grand Total

Total

Depreciation

will about

increase

immigration

the

Surplus or
Year

Secondary
manufacturing
today employ approxi¬
mately 20 %, of the total working

Bruce Friedlich With

Personal and

Cash

I'ndistrib.

Cash

Deprec.

Savings

ex¬

the period the total
economy

L. G. Gerald V.-P. of

exports

over

(7)

million.

Total

Corporation Savings

Total

Personal

compared with

imports

industries

population by 1980 would be 27.5

(Millions of Dollars)

Year

tion averaged 100,000 per year,

Surpluse^

Personal Savings

considerable
for .Canada

This should bring about

annum

Personal Savings,

From

over

SAN FRANCISCO, Calif. — A.
(8)
Linked
closely with the
future, as well as our bright ones.
M. Bleiier, president of First Cal¬
But'given leadership, flexible study of Canada's secondary man¬ ifornia
Company, has announced
policies, a willingness to change ufacturing industry is the tariff the election of F. Stuart Roussel
policies as occasion demands and and commercial policy. This ques¬ to the
company's board of direc¬
tion is discussed in great detail
a
bit
of
luck, Canadians have
tors. He replaces Louis A. Rezin the Preliminary Report and
every reason to look forward with
zonico, Jr.
optimism and confidence to the the conclusion arrived at is that
Mr. Roussel is a veteran in the
continued economic development tariff protection,'1 at some level,
securities business and has been
of our
country and to a rising will be contiriued irl the years to with First
California Company for
:Uvv ):> i,a;
standard of living in the years to come.
many years. He is vice president
(9)
The
come."
Preliminary 'Report
and manager of its Southern Cal¬
comments in cletail upon prospec¬
A brief summary of a few of
ifornia Division with headquarters
tive requirements and sotirces of
the more important forecasts con¬
in Los Angeles.
In the' postwar decade
tained in the Preliminary Report capital.
f; The
company
has 34 offices
1945 to 1954 only 3% of the total
are as follows:
serving investors in California and
requirements of $48 billion rep¬
Nevada:
(1) The population of Canada, resented
capital
inflow
from
which at the present time is ap¬
abroad. In the early years of this
proximately 16.5 million persons,
period
personal
savings
repre¬
should increase to 19.5 million by
sented a much higher percentage
1965, 24.0 million by 1975, and of the Gross National Product
26 7 million by 1980, assuming a
than they did in 1954 when it was
net

EXHIBIT

very

expansion

output of the

billion

excess

—211

-492

1.008

8, 48,

sion,

—193

871

Source:

39,

928

1956..

■

570

1952_„__

38,

417

194«____

manufactures

capita net disposable income. We
shall have our dull periods in the

330

960

5,841

—

pect that

standards and in the levels of per

4,372

—

1952—

in <part

reads

remarkable

a.7

—

947

1948-

1947—

report

triple.

—$332

$1,703

3,304

Out¬

flow (—

Equip.

$2,474

this

in the next 25 years.

Capital

Savings

over

in 1955 of $340 million.

covering
115
The concluding paragraph

economic

(Millions of Dollars) '•

Domestic

pages.

have forecast

and

'Try'this Preliminary Report

Equipment

and

sections

follows:

Capital Inflow and Outflow

govern¬

bearing
development.
a

The Preliminary Report is con¬
in a booklet divided into

Savings and Application to Capital

Together With Figures

Year

have

tained

That there will be no major

(3)
'

EXHIBIT. D U

;
:

economic

Although the burden of de-

fense

which

ments

experienced in the Thirties, and
spending will remain heavy that there will not be prolonged
will not be a global war periods of mass unemployment,

(1)

l:'

changes in the policies of

Street.

victory

mean

over cam

for you.

cer

1. Unusual bleeding or discharge
2. A

lump

thickening in th#

breast or elsewhere. 3. A torn
that does not heal. 4.
bowel

bladder

5. Hoarseness

gestion

Change lit
habits.

cough. 6. Indi¬

difficulty in swallow

Ing. 7. Change in

wart or mole*

If your signal lasts longer than
two

weeks,

learn if ft

to your doctor to

means cancer.

AMERICAN

CANCER

Jfe

I0CIETY

The Commercial and Financial Chronicle

(126)
v

Continued

from

•

Thursday, July 10, 1958

page

This

gard.

have

affair.

Dixon-Yates

manifest

became

the

we quit our quarrels may we
achieve the volume of developas

Some

Continued

from

page

'
,

A Pattern for Atomic

whether

tions

Power: Anderson
1

•?.

•

.•

•

v,.

•

suggestion
which
might be considered was made by
One

plants.

Gale

Willis

Edison last year

Commonwealth
which would ap¬

4-to-l ratio which is the
current proportion of private to

ply

and
cooperative owned
plants for the production of elec¬
public

conventional means.

tric power by

V(5) All technical and financial
information,
the

for

and

generally,

industry

•

the

under

vided

would

and patents,
benefit of the

public

current

pro-

power

reactor demonstration program.

private
not

were

since

wondered

also

organize-

power

interested in

ment and manufacture of reactors
and components so necessary for
economic power. My proposal also

We Have in this

tries to make clear that the role
of the Federal
Government is
in the early achievement of eco- primarily that of providing the
nomic nuclear power.
necessary program of research and
social and economic competition.
I am willing to let
the dead development in the design and
past bury its dead, and go on to construction of
reactor experi- We cannot meet this challenge by
happier days. There is certainly ments and experimental proto- merely fending off military attack

out" the atomic power
field for private development than
"staking

need

for

era

new

atomic

development. I hope that
this modest proposal which I have

power

will

advanced

studied

will

and,

types

necessary,

fill

with deterrent power.

not otherwise provided for
by private industry,

gaps

Accept
We

When the victors of World War

during

must,

face

for

value

and

Khrushchev's

it that way. It takes a very brave will be solved not by rockets, nor
the man to be a coward in the Rus- by atomic and hydrogen bombs,
meantime we
should deal with sian Army."
.■>
> but by the social order which in¬
1959 projects as expeditiously as
I agree in advance that some sures more material and spiritual
possible.
new
vision may be needed on good for humanity."
push.

real

;

understood

should

reactors

prototype

experimental

that

would still be constructed

by the

both

Federal

under contract with

Government

private industry.

It would
what

Calls "Public Power" Question
^

believe

Phony

above lines would

along the
long way

toward ending the stalemate which

presently
I

always

have

"Public

called

you

know,

thought the soPower"
question

phony in the atomic energy
Our
purpose "is
and has

was a

field.
and

exists.

been

get

reactors

said to be at least the outline of

In attempts to
steer
private and public groups into the

design and construction of second
and third generation atomic power
plants
by
means
calculated
to
encourage
prompt
construction
without
any
controversy
over
public versus private power. Only

private vs. public power may
be relevant, but anything we do
in the next few years will have
can

real

effect

when

reactors

bought off the shelf.

In order for a program such as
I have envisaged to

work proper¬

ly, there must be a considerable
amount of "good faith" involved.
The

exist

be¬
tween AEC and the Congress, and
^between the participating' indus¬
trial and utility groups.
good

faith

must

In
.some

the

past, there have
questions as to the

been
good

faith of the executive branch and

private organizations in this re¬

private and one public-—the additional financial support, the extra
drive and the enduring good faith
required to achieve success for
an
accelerated program.
But it
can be done, and if the men who
write the atomic news will stand
it will take a very
to be afraid to try.

fast,
man

brave

APPENDIX
List of Reactor Projects Considered by

Joint Committee

the

The

in pursuit of

program

the

stated

objectives must continue to
provide for the exploration of a
considerable

number

come

less firm

time is extended,

Program flexibility is essential in

concepts for the purpose of deter-

mining which one
the most
promise

program

ones

hold

economic

the

kind

dream
We

with

technological

advances.

The

should

recognized

suc-

ceeding generation, considerable
testing
and
startup
experience
that should be available and usable. *

TABLE I

Approximate

Cooled
Power

ponents Reactor
Moderated

(60 TH MW)

clear

Heavy

with

study

contract

AEC

study

Proposal
Under

1958-1962

made

study

\
to

AEC

order

have

1958-1962

contract

but

based

development

prodigious

the

In all of these

development, <
reached the position she is
day because she worked
at it—and that again is -a
areas

fact that .must be.faced

Russia
in to¬
harder
simple
we

are

"beat the competition."

cannot

help but be impressed by
she has made. We
are not opposed to economic bet¬
terment of the people of the So¬
viet Union or of any other coun¬
try. We welcome such improved
progress

economic

conditions,
better

because

world

for

all

to live in.

is the Soviet

answer

consumer.

He is denied the prod¬

ucts of his

own

ard

labor.

His stand¬

living is, therefore, neces¬
lower
than
that of the

sarily

American

consumer.
In fact, on a
capita basis, the consumption
average Soviet
citizen is

per

the

than

less
the

one-fourth

that

U. S. citizen.

average

The State wills it that way. Mr.
Khrushchev made that quite clear
when he told a group of Soviet
workers that:
"The

majority

live

for

•

great

citizens

Soviet

accumulate

the

common

for

cause,

the state; to raise the level of pro¬

duction,
that

machines will be

and

science

and

economy

even

made

grain

produced.

"Hard
This

begins
iterated and

concern

the

aim

reiterated
of the

leaders

their

ends

and

that "the ulti¬
drive

toward

the

put

structure—out

our

business!

By 1962, it is estimated by our
intelligence services that the So¬
viet Union will be producing one
of

goods

and

services

Choices"

Before

philosophy

conduct

Union

and course of
the part of the Soviet

leaves

with

certain

op¬

what I would call "hard
choices." If the Kremlin, respond¬

tions,

ing to popular pressures, is forced
to direct considerably more of the
Soviet output into consumer goods
order

increase the standard

living of her people, that would
be a healthy condition we would
welcome.

Russia

rials for

the

other

fit to direct

sees

of her

hand,
more

and

production to mate¬
and

war

less and less

the standard'of living of her peo¬

ple,

may

forced

take

drastic steps in order to maintain

leadership in the world even
if this means a more Spartan life
for our people.

our

We should always bear in

Concern About the Aim of Russia

mate

The

duction.

Anyone who studies the eco¬
nomic development of the Soviet
Union
over
the
past 30 years
the

the stick somewhere

permit this emphasis on indusexpansion and defense pro¬

field of education.

how do they do this—
certainly must get the

too,
at

that
any

.choices."

the
time

mind,
Union can
her
"hard

without "advance consul¬

with

tation

Soviet
make

her

people—because

she operates a police, state where
the voice of the people is subject
to

the

most

repressive .controls.
other hand,
no really "hard choice" is possible
unless it be made with: the yvill

In this country, on the

the

mits

people.
Our society per¬
to accomplish any feasible

for

1959-1964

thing we desire to be done*
It
every
two
dollars -we produce..
only requires that the means and
Now, why should we worry about method
of
accomplishment
be
competition from a country that within the frame of freedom.

1959-1965

duction

100-250

lution

with

AEC

1958-1963

75-150

Process Heat Reactor

1959-1965

0 (45THMW)

Salt-Fueled—

Water

serious

most

the making of arms,r
truly phenomenal eco¬
nomic and
industrial growth in
the Soviet Union, plus an equally
not alone

dollar

Aqueous Homogeneous So¬

Steam-Cooled,

the
faced.

ever

our

war

still

for

1 rial

funds

Certain it is that the test of
social

and

Moderated

Fused

to conserve it."

for

greater pro¬
duction of all types of goods.

valid.

peace prepare

social

1956.-1960

10-50

our
any

Capitalist system^—and with it

contract

with AEC

and

win

peace

completely

industrialization

for Project

Nu-

Superheat
Water Cooled

with

Under
40

;

Water

Status
Under

Gas-Cooled, Graphite-

Boiling

Time Interval

and

Com-

course,

Soviet' government

Approximate

Rating: (MW)

Water

order."

general denial of

statements

Electrical

Project

only

can

the old saying, "in
prepare for war,"
In 1958, it is
realistic to say, "in time of

tirhe

with

Power Reactors for New Undertakings

Moderated

man

"socialist

Our

Heavy

man

individual

expansion—which

facilities

goods

the other fellow's prod¬
uct.
We
must, in ther language
of the business world, "beat the
competition." "Beating the com¬
petition" may, and probably will,
call for great peacetime sacrifices.
good

makes

available in time for the next

promise to be capable of meeting
the program objectives.
1
It

giving

the

cannot,

case

resented

economic

industrial

for

means

one

even

short end

achieve¬

the

scope

the Soviet

sufficient

and

freedom

must be subject to connuclear power and
are,
at the stant review to make certain new
same time, reliable and safe.
It is concepts
are
evaluated
rapidly
also recognized that the program and projects proved not feasible
must include the building
of a are weeded out.
number of experimental reactors,
Table I lists, in rough chronoincluding several generations of logical order, new reactor projects
nuclear power plants of the same to be designed during the next
type but of successively improved five to seven years. It is expected
designs. The success of the pro- information
gained
during
the
gram will depend upon continuing design
stage will indicate only
a
broad base effort of research about half of these projects will
and development and upon pro- show enough technical and ecoviding reasonable assurance that nomic potential to warrant conthe number of plants built during struction.
Second generation rethe next 5 to 7 years will be ade- actors are scheduled so design and
quate to reach the program's ob- construction
experience
in
the
jectives. The selection of experi- first generation reactor can be
mental or prototype nuclear applied to the design of the secpower plant projects will be based ond.
While operating experience
upon (a) having sufficient tech- concerning high fuel burnup tests,
nology to proceed, and (b) judg- maintenance and high plant factor
ment that the reactor type rep- reliability normally will not be
has

rebuttal

offer

ments of democracy in

order to permit adjustments based

for

highest form of organiza¬
our society"

ours.

point that
significant
than the percentage of the Rus¬
sian budget that goes into mili¬
tary expenditures. Russia is plow¬
ing back a larger percentage of
her grossnational product than
America into capital investment

someone

No longer is

specific projections of desirable
projects within the program be •

reactor

order

a percentage
product
are

There is

perhops

Now,

socialist

tion in

Atomic Energy

the question

little

make available to its industry—
nearly all private—and its electrie energy distributors — four

the

"That

expenditures in

national

gross

when he adds:

But

atomic

the, recent

battles if this nation is to

devel¬

oped, built and operating, so that
some
day in the not too distant
atomic power will supple¬
ment
conventional
energy
re¬
At that time,

opment."

future

sources.

sides

energy

pleasing, indeed, if
described may be

have

Goal

"pattern for atomic' power devel-

program

Government's

alternatives necessary to give the
program

Defense

Fourth:

Value

once,

Mr.

Third:

the Soviet Union

rougnly double

Threat at Face

II were meeting one day at Tehwords to the Supreme Soviet that:
ran, General Marshall praised the
(Dec. 21, 1957)
'
;
enough along to heroism of the Russian Army,
"The victory of a social order
other legislative
Stalin replied: "We don't see

far

consider

Country, Serious

But Surmountable Problems

the next months, and that by the
time the next Congress convenes,
we

■

1959-1962

Heavy

Moderated

won't

even

reach half of

until

our pro¬

There

1962?

are

Liberalizing Trade

•

Under study by Southwest

Intermediate Energy Neutron

Water

Breeder
Cooled

Atomic
10

Energy

number of valid

Associ-

ates

Under

Moderated, Hanfordtype 300-700
Water,
En"

Boiling

Water,

Uranium

Organic

Fuel__

with

AEC

Cooled,

Liquid
actor

Metal

19*59.1964

iaRn

Organic
:

Fueled

iqr«;

icma

Second:

(5 TH MW)

15-40

iq«i

iqRR

High

1961-1965

High

I9bl-1966

Temperature GasCooled,
Graphite
or
Heavy Water-Moderated 200

i9Ri

Temperature Sodium-.Cooled, Graphite or
Heavy IVater—Moderated 200

Organic-Cooled,

Organic

Moderated

Sodium-Cooled

Fast

actor

Metal

Fueled

i aRR

iqRR

200

1962-1967

that

Russia

i qri-i 96a

Soviet citizen in the form

of consumable goods .and services.

contrast,

1963-1968

Re-

fact

prodtices only 40% of what we do
now
and will produce 50%
by
1962 does not tell the whole story.
It's what she does with her output
that's important. For instance, less
than half of it gets into the hands
of the

Intermediate Breeder

Liquid

i9Rt
•

200

The

1959-1963

Two Small Second Gener¬

ation Industrial Plants-

short

time. I have been

Re-

Experiment

the

States.

contract
1958-1963

200
200

Moderated

cern:

1960-1965

study

Enriched

Fuel

con¬

iqca

Graphite

Uranium

for

office, it has been necessary for
First:
The Soviet
echnomy is me, with the| full approval of the
growing and is expected to con¬ President, to make two trips to
tinue to grow, unless the trend is Congress to ask for what I con¬
reversed, at a rate roughly twice sider absolutely necessary sup¬
that of the economy of the United plemental appropriations totalling

1958-1967

Pressurized
riched

reasons

our

1963-1968

consumer.

total

over

two-thirds

production reaches

of
the

some
three billion of dollars to
bring our military effort to a level
of required adequacy. I am afraid

these

steps, essential as they are,
only put in balance a i>art of the
battlefield

the

strictly military

In the field of

foreign trade, as

—

effort.

the

system
It

military field, the
offers

tough

lias, in this field,

problems,

Soviet

competition.

-no

budgetary

interest rate prob-

lems,

and

tions.

legislative

' "

•

restric¬

At this very moment,
dent is in the process

the Presi¬
of asking

the

Congress, as representatives
people, to make what many
would
regard as
one
of these
of the

"hard choices."

He wants the Re¬

Trade Agreements Act
a period of five years

ciprocal

extended for
'•

in. order-to provide sufficient au¬

thority

flexibility

and

to "meet
beat the competition" in the

and

economic field.

with

trade

Re¬

the

spirit

competitive enterprise—then
be

shall

world

with

faced

around

the

enter-

government

prises and state trading organizations

the

image of

adver-

our

tives

which, in

judgment,

are

vital-to. the national security.

Parents will
tribute
taxes

money

educational

country needs.
about

minor
we

broad

100%

field

through
for

the

have

con¬

program

—

talking

not

increases.

may

—

contributions

kind

have

also

antici¬

put

in the

money

education

from

than

now

are

allocating. This requires,
the making of a
"hard

again,
choice."

It will be made only if
people understand the need for it
—and

American

Children, too, must be taught
public must be
the realities of better self-discipline in their sub¬
expanding, trade with the world,' ject choices and study habits. I
even accept some sacrifices, in the
say
"taught" because relatively
interest of an international pro- few young people of high school
gram which is vital to our nation's and college age will learn to dis¬
future.. ;
cipline themselves. Again, this is
■?. ;
Moreover,
we
must
exercise a joint task of parents and teach¬
The

prepared

face

)

responsibility of leadership in
the world community by helping
our

the

peoples

raise

standards
->

and

pirations

take

"J
■

such

their

achieve

living

their

as-

viable political enti¬

ties.

underdeveloped

countries

help in this area by
intelligent assistance in the fields
of economic and military aid.. To
can

action

indeed

in our

ers.

rise

these

gardless

might

responsibilities,

the

of
now

choices"

sacrifices.

will

gracefully

the American pattern.
American way.
these

But

hard

losing

are

poten¬

some

re¬

fit

into

That is the

deal

work

before

course

t(.

Americans

Citizens
are

been

apt

reaction

be, "Well, you have told
the problem is; now tell
want

you

general

answer

what
what

The

do."

that

apt

only

question

be given

can

this

that

citizen must make his

every

own

what

con¬

can

them.: We sim¬

produces more, and as it partici¬

stern demands

actively in spiritual and
long term interest since no coun¬
material leadership in the world.
try can, for very long, carry on mental wastage.
In Communist countries the will Each citizen might well ask him¬
international trade unless it oper¬
ates from
a
firm economic and of the party is the law of youth. self one or more of such questions
as
these:
What am
I
doing to
Here, it must be the coordinated
political base.
my
understanding
of
will of teachers and parents which improve
Better Education
such important national needs as
directs
our
children, not
with
the Reciprocal Trade Program and
Much of what I have said with inflexible
laws, but by guidance
the program for military and eco¬
respect to the field of economic and intelligent persuasion.
nomic aid to less privileged na¬
competition is also true in the
Let me mention a
subject of
field
of
education.
Here again,
deep interest to me—and I'm sure tions of the world? What have I
we
done in my own community and
have some soul-searching to to'
you.
state to
stir some really broad
do, some comparisons to ponder,
Stronger Defense Emergency
visioned action for improvement
and
some
adjustments to make.
Power
in public education? In fact, what
Russia is said to be outproducing
In this competition between a have I done with my own child¬
us
in the education field, and in
authoritarian
society ren to guide them in the quality
some areas, I have no doubt this powerful
is true. She is able to do this not and our own democracy, we have of training that will lead them to
reached a stage where we must make the best use of their talents
because she has a better system,
but because she has allocated and be able to respond rapidly to un- for themselves and for the Coun¬
emergencies. The try? In the field of higher educa¬
directed her best brains into those a n t i c i p ated
areas
the State has declared cri¬ President's program for reorgan¬ tion,
have I really made a
tical.
In
other words, she has izing the Defense Department and substantial contribution to my col¬
continuance

this

sort

rec¬

1954.

1952 there

tax-exempt bonds

many

marketed

had

never

whole

year," said

Market.

The

ply do not have the manpower to

to
select and apply themselves to the
courses
which
made
relatively
youngsters

market

problem.

in making his de¬
cision, he must keep in mind that
this Country is stronger as it un¬
derstands its problems better, as
it
trains its youth better, as it

encourage

bond

six month volume

over

Halsey, Stuart & Co. Inc. in an¬
nouncing the unprecedented vol¬

But,

tax-exempt

new

I might term "impatiently
cooperative" when we are told the
Country has a problem and needs
help from its citizens to solve that

cert

ord

set

what

tribute.

con¬

The

set

"Prior to
for

pates

in its annual Mid-Year

ume

vey

the

Bond

half of

second

commented,

1958, the

"those

who

willing to predict see the sup¬
of
new
tax-exempt
issues
slacking off,1 but generally it is
felt that last year's $6,958 million
are

ply

by nearly

bil¬

dollars."

At June 30, 1957, all tax-exempt
bonds outstanding totaled $52 bil¬

lion, of which the holdings of in¬
dividuals
sented

the

done

same

thing with brains

that she has with

production and

money

—

allocated

controls

strict

under

them

imposed

the

time,
provided rewards and community
recognition which makes intellec¬
State.

She has, at the same

tual and scientific prowess

attrac¬

tive.

the

legislation

now
under con¬
the Congress recog¬
nize the need for our being able
to react almost instantaneously to
military situations.

sideration by

The

same

kind

of pressure

faster decision-making, for
to

for

ability

act

promptly when necessary,
of
which our outer space and eco¬

extends into many other areas,

university or have I con¬
only the bare minimum,
involving no sacrifice? These are
only a few of the questions that
each of us might ask himself—
lege

tributed

I assure you that as I
questions I am now far
satisfied with
the role
I

and

may

ask

these

from

Power

Still

Large

funds for investment

concerned, buying power still
to
be
large,"
Halsey,

are

appears

Stuart pointed

out.

"Savings

are

still increasing, public pension and
retirement funds are still growing,
commercial

banks

entered

the

market

proved

earning

casualty

again

im¬

position of
should

the

and

in¬

their interest in high grade

crease

tax-exempt

bonds.

of funds

source

the

have

companies

for

added

new

issues is

increasing amount of bonds
are being retired in advance
The exact amount of

that

such

funds

but it is

cannot be tabulated,
large and is likely to in¬

crease."
While these
to different
for

funds

trust

and

repre¬

billion or 40%.
Banks held $13.4 billion and in¬
surance
companies $7.4
billion.
All these buyers increased their
holdings during the six months,
$22

some

factors

can

add up

predictions
tax-exempt bonds, "there is a
answers

large

sector

needs

will be exceeded
lion

Buying
"So far

of maturity.

the

survey

Sur¬

Tax-Exempt

these

the

bonds

exemption and

that

market
their

for

tax

prefer
security. The sup¬
ply of tax-exempt bonds is in¬
creasing and the market for them
many more

them for their

continues

grow,"

the

survey

concluded.

Jones With

Reynolds

(Special to The Financial Chronicle)

and commercial banks in the first

quarter

alone

added

half

bil¬

*-•

range

supply and demand

of action.

Decision

price

narrow

for tax exempts continues to grow.

this

and what should be done

are

decision

act

Notes remarkable

about them.

parents

not

1958.

$4% billion in the
first half of 1958, with three of the
Indeed, every citizen six months
setting new monthly
who has the ability to analyze the
records and the overall half
year
Country's problems has the atten¬
total exceeding by half a billion
dant
duty
of
explaining these
dollars the previous six month
problems to others and urging a
record
lems

did

about V4 of 1% in the averages and, as far as investments
funds are concerned, a large supply of
buying power still
available and likely to increase. Concludes

not

are

happens. I have, as a member of
the * government, the duty of ex¬
plaining to people what our prob¬

road to education because

teachers

months

choices

Municipal Financing in First Half of 1958

Halsey, Stuart & Co. reports new record high, amounting to
$41/4 billion, in tax-exempt bonds' marketed for first six

"hard

going to be made and gracefully
dropped into the pattern auto¬
matically.
We all have a great

tiallygreat scientists, engineers,
linguists,, and teachers along the
and

Record

What

seem

allow

{

greater responsibilities, they will

fact, demand that it be

made.--

sary.
1

of.

nor

we must work within the
frame of freedom to reach objec¬

50%

along

have,

Again,

able to bring underdeveloped

field

education, we
want, a central
authority
backed
by j police
power
which
pre¬
scribes ready - made objectives,
standards, curricula and quotas.

pate

free

the

governmental

are

countries

others

minimum

interference.

strictive
not

We must be able
others—and

us—with

with

neither

lion

dollars,
in

added

than they had

entire

the

year

ended

June 30, 1957.

Hornblower

"Meanwhile
and

new

BOSTON, Mass. — Clarende F.
Jones, Jr., has become associated
with Reynolds & Co., 19 Congress
Street.
He
was
formerly
with

the

demand

bigger schools,

for

imposing public buildings con¬
tinues
unabated,"
said
Halsey,
Stuart, citing an estimate that the
output of tax-exempts would

billion

"Looking

by 1975.
future,"
the survey said, "some of the ex¬
perts still see a large supply of
municipal and other tax-exempt
bonds coming along. Voters con¬
tinue to
approve 80
to 90% of
proposed issues, revenue issues for
and

water

tinue

year

nearer

sewer

facilities

con¬

increasing amounts

and

large projects by authorities
public corporations

many

Paine

and

With L. F. Rothschild
(Special to The Financial Chronicle).

BOSTON,
Ellison is

child

Street.

Mass.

Co.,

—

Donald

with L- F. Roths¬

now

was

Ill" Devonshire
previously with

Lyons & Shafto, Inc. and Weedon
& Co.

Joins H. L. Robbins
(Special to The Financial Chronicle)

WORCESTER,
J.

Fontana

Robbins &

Mass.

now

Peiet

—

with

Co., Inc., 37 Mechanic

Street.

similar

and
are

the

Weeks

and

wider highways, larger and more

reach $15

Webber, Jackson & Curtis.

in the

played in my Country's affairs as
Neil McElroy, private citizen.

making."

Narrower

Price

With Hunter Parker
(Special to The Financial Chronicle)

Range

the field of
PORTLAND, Oreg. — Norman
The people within the sound of
The price range of tax-exempts
people in¬ nomic aid programs are typical
M.
Van
Brocklin is now with
my
voice here in this crowded so far this year "has been re¬
cluding our military leaders join examples.
Hunter Parker, Connaway & Holme in believing it is the most seri¬
To gain this authority and flex¬ quadrangle have a special duty markably narrow, about oneden,
430
Southwest
Morrison
ous
of all our problems vis-a-vis ibility necessary to react rapidly, and
responsibility
to
educate quarter of 1% in the averages—
Street.
\
because
you
have been based on a 20 year maturity—as
the Soviet Union) is to find a bet¬ we may very well have to vest others
ter
way,
consistent
with
our more authority in the hands of blessed with the fruits of educa¬ compared with one-half of 1% in
Two With Frank Siemens
democratic principles, to marshall the Executive—being careful—as tion. If you have been convinced the same period a year ago. To¬
our
intellectual resources.
The I am sure Congress will be — to of the necessity for action in the day's level is ajbout the same as
(Special to The Financial Chronicle) l
•
solution to this problem won't be provide
adequate
safeguards areas I have discussed today, it is it was at the beginning of the year
PORTLAND, Oreg. — Gordon
incumbent on you to seek oppor¬ notwithstanding
the more than L. Guild and Wayne E. Hibbard
easily found. We are smaller in against the usurpation of power
numbers than our Communist ad¬ as well as to set up mechanisms tunities to pass the message along.
$41/4 billion of new issues that are now connected with Frank
versaries and we must, therefore, whereby the Executive will report Institutions of higher learning in have been poured into the market Siemens & Associates, 1720 South¬
with Harvard in the stream. The averages do not tell east 38th Avenue.
make optimum use of the intel¬ to Congress when important ac¬ America
'
:
lectual capabilities of our people. tion is taken under such flexible forefront—have always taken the the whole story, of course. The
lead in explaining vital issues of one to five year prices are sub¬
! At the same time, we must work authority.
With Straus, Blosser
We must stantially higher than they were
While I have spoken to you of the day to our people.
through encouragement and per(Special to The Financial Chronicle)
suasion rather than by direction problems ahead, I have complete today, as we have in the past, put six months ago, as a result of the
MILWAUKEE, Wis. — Jack E.
and control. This means the task and unbounded confidence in the heavy reliance on individuals such increased supply of funds created
becomes a whole community job ability of this Country to under¬ as I face here — to put their by the prevailing policy of the Fidler is now with Straus, Blos¬
in
which
the
government
and stand these problems and to take knowledge and understanding in Federal Reserve Board and the ser & McDowell, 710 North Water
the
form
of communication
to decline in demand for bank credit. Street.
parents and teachers must act in public action to meet them.
In order to remain in the fore¬ people not so fortunate.
I, there¬ Longer term prices are lower, but
harmony and concert.
We need a better selection of front of nations—to eontinue as fore, leave a large share of re¬
they have stubbornly resisted any
Leason Adds to Staff
educational
programs
and cur¬ the example of the better life for sponsibility with you and with great decline."
(Special to The Financial Chronicle)
ricula in relation to special apti¬ individuals and other nations all other groups, similarly equipped,
The
"Blue List" offerings
in
CHICAGO, 111. — Herschel D.
tudes of individual students. If we over the world—we, every one of to furnish leadership in the task
1958, excluding New Housing Au¬ Everson has been added to the
are
to discover and identify the us, must be prepared to make in¬ of keeping our people informed.
thority
bonds,
have
fluctuated staff of Leason & Co., Inc., 39
We have in this Country seri¬
special aptitudes, parents and formed decisions
Our

problem

education

(and

many

—

„

and, if need be,
help. sacrifices. We must not allow our
If we are to shape our educational
responsibility for world leader¬
programs to cultivate these iden¬ ship to be lost in our eagerness
tified aptitudes, parents must first for the good life. History tells us
understand
the
need
and
then that such eagerness has, in the
strive
to achieve the goals.
To past, led to a softness which has
educate
people in the need to destroyed societies.

teachers

our

cooperate to

educational

I have several times used the
programs
capabilities of words "hard choices." I am sure
students is one of our most we all realize that once the Amer¬

tailor
to

must

the

our

'individual

difficult tasks.

ican

people

are aware

of new and

ous,

but surmountable, problems.
confidence and

I have the utmost

faith that when our people

under¬

widelv from a low of $155
to

million

year

they total $370 million.

"Bid¬

and extent

ding for new issues has been con¬

thev will ini¬
tiate the tvpe of corrective action
which will maintain
our
world

sistently strong, with bidders gen¬

stand
of

the full

these

nature

problems,

disregarding

erally

unsold

por¬

quality
the market at lower prices and

tions

issues

of similar

leadership.

of you

huge supplies of known new is¬
sues approaching the market," the

you

I leave to each one
the decision as to the part
will r>]av in this educational

and remedial process.

South La

Salle

Street.

high of $392 million. At mid¬

survey

said.

Joins Reeves Staff
(Special to The Financial

Chronicle)

Calif. —
joined the
staff of Daniel Reeves & Co., 398
Souih Beverly Drive, members of
the New York and Pacific Coast
BEVERLY

HILLS,

David E. Hagenow has

Stock Exchanges.

The Commercial and Financial Chronicle

'32

Actually, this would have been a
reverse
form of pump-priming;

Continued from page

Recession

The End oi the 1957-58

decided

government

the

fortunately

and

against it.

Thursday, July 10, 1958

Inflation

Further

Ahead

effect upon ecutive and Legislative Branches
values. Regarding the and to both political parties. By
probable future Long-Term In¬ bowing to political pressures and
terest Rate, it is my opinion that adopting those various anti-reces¬
it should tend to average between sion
measures,
the
government
3.25% and 3.50%, barring war or simply opened the door a little
further to the spectre of runaway
national emergency.
Finally we come to the Stock monetary inflation.

has had

bolstering

all security

Every one of those anti-reces¬
June of civilian goods to the bone, arid
sion
measures
was
inflationary,
1957 and 4.25%, in August 1957. expend much of our energies to¬
ward increasing plant capacity.
tending to increase our money Market,
w h i c h
unfortunately
That very substantial advance had
supply. In this connection it is in¬ seems to exert so much influence
Today we are faced with the
a
depressing effect upon all secontinuing threat of the Soviet teresting to note that our average upon the public, for better or for
■curity values.

December 1956; to 4.00% in

satellites—the

and its

Union

cer¬

decline in
tainty of economic and scientific
late July and early August 1957.
competition, and the possibility of
Actually, many stocks were rather actual warfare. Under such cir¬
(2) The stock market

(128)

in relation to

priced

fully

earn¬

ings, particularly in view of the
increase in the long-term interest
jratc.

cumstances,

would

fair amount

fools not to develop a

plant capacity lor use

of surplus

increased to $135.5 Oct. 22, the Dow-Jones Industrials
and declined to closed the year 1957 at 435.69,
between
436.89
and
$134.7 billion in 1957. So far in fluctuated
billion

particularly

1956,

money supply$136.5 billion,

average
increased io
our

has

perhaps in large measure because

three months

the first

for

458.65

emergency,

bearing in mind the possibility

of the

courage

Loewi & Co., Inc.
("Special to The Financial Chronicle)

MILWAUKEE, Wis.— Loewi &

Co. Incorporated, 225 East Mason
of 1.958, and have been steadily
moving upward
since the first Street, members of the New York
Stock Exchange, have announced
week of April. The D.J.I. Average
that
Thomas
closed at 474.77 June 13, up over

government's efforts to en¬
borrowing and m a k e
a surprise nuclear attack. Remem¬
13% from the October low, and
money cheaper.
S1/i%, August 8th. While designed ber that surplus plant capacity
than
9%
below the
peaks
It is also interesting to note the less
to curb inflation, it had an un¬ will not be used to "glut" the
reached in April, 1956 and July,
government's position in various
avoidable depressing effect upon market
1957. That steady advance has ap¬
place, and that only the y/age disputes and strikes which
public sentiment, and emphasized more efficient plants will be used occurred
during the latter part of parently had a very relaxing and
thai fact that .money was dearer.
to satisfy the needs of the public. 1957 and the early part of this encouraging
effect upon public
confidence.
-'/V.-, % 4
(4) Communist coup in Syria,
year. The Federal mediator in¬
Anti-Recession Measures
August 18th. Another "pot boiler"
In
variably suggested a compromise
passing, I cannot refrain
Returning now to the recession, between
following Egypt's seizure of the
industry's
offer
and from mentioning the recent ad¬
was
am, unavoidable
time labor's demand, regardless of the vent of a new investment trust.
Suez Canal in July 1956, and the there
French-British invasion
that lag between the downturn in gen¬ fact that such a settlement would From an initially proposed offer¬
October. Since the Middle East is eral business and its reflection in necessitate
higher
prices! And ing of 3,000,000 shares, it mush¬
£0
important
to
the
Western statistical indices;—the lag is from that, in spite of the administra¬ roomed to actual sales of over
Democracies for its oil and stra¬ two to three months or more. But tion's avowed intention of "hold¬
15,800,000 shares at $12.50 per
tegic location, any unsettlement in when it did show*sup, the public ing the line" on prices and the share! The investing public put
that area has a depressing effect was quick to demand that some¬ cost of living, and in the face of
up some $195,000,000, at a sacrifice
in

(3) Increase in the Federal Re¬
serve's discount rate from 3% to

Thomas L. Garter With

From its low of 419.79 last

worse.

billion in 1955,

utter 1958,

supply amounted to $134.6

money

has

Carter

joined the or¬
ganization a s
manager of its
Municipal
Bond

Depart¬

ment.

psychology.
thing be done to stop the decline;
(5) Continuing 'French difficul¬ and the government was equally
ties in Algiers, again accentuating quick toadopt anti-recession meas¬
uncertainties
in
the
Mediterra¬ ures. Those measures included the
nean area and the
declining im¬ following:

ctpon mass

colonial

portance of Fiance as a

Bank of England raises its

(6)

tember

the

and

19th;

Stock

sharp

suffers

Market

decline.

Launching

Russia's In¬

Missile

Ballistics

tercontinental

lower the discount rate from 3 [■>

Federal Re¬
London serve Banks take similar action
rather November 27th. This reduction is
designed to reduce interest rates
and
hence
stimulate
borrowing

discount rate from 5% to 7% Sep¬

(7)

(1) November 14, 1.957—Federal
Banks in four districts

Reserve

power.

Three

3%.

and

business,

new

making

cheaper.

money

(ICBM), followed shortly by Rus¬
'
(2) January 15, 1958 — Stock
sia's "Sputnik" satellite October
4th. While not necessarily signifi¬ market margin requirements are
cant from an economic point of reduced from 70% to 50%—mean¬
view, these served as a warning ing that a buyer has to put up
that Russia might well be out¬ only $5,000 cash instead of $7,000
stripping us in scientific clevelop- in order to buy $10,000 worth of
national

pride,

our

de¬

signed

blow

and

pressing public confidence.
The

(8)

started

had

reached

decline

bottom

which

market,

stock

July,

October 22nd,

lates

(3)

lending by banks. This, too, tends

frightened into cur¬
normal expenditures.
curtailment automatically

depressed general business, which
its

had

turn

effect

pro¬

upon

inventories

were

and

trimmed;

plans for future capital expendi¬

(5)

feeds

fear;

and

(6)

Eisenhower

proposes

billion

increase

In addition to the above, many

people suddenly became aware of
that

the

postwar

frightened them: and they simply
refused
to
believe that
surplus

capacity should be consid¬

ered

asset instead of

liability.

people cited this factor,

many

that

believe

brief explanation

first

the

not
to

place,

wealth

individuals
the

1929-32,

and

the years
been

in terms of abundance,

of scarcity. That applies

cause

the

Be¬

the uncertainties

of
in

that followed, there had

comparatively

little

plant

World

War

II.

result,

our

industrial plant was not at its best

were

entered

that

war.

thus forced to cut production

over

recession."

strong

two.

year

again reduces the discount

Board
rate

five

Banks from

Reserve

Federal

214%

(9) April 17tli—Federal Reserve
also

Board

requirements
cities

serve

cities.

This

and

million

addition

there

would

free

some

free

legal

from

meas¬

general tax cut.

that

such

substantial

cut

amount

of dollars which would almost im¬

mediately be diverted from gov¬
ernment

trade

thus stimulating

and

industry,

general business.

Company in
1954
after

Carter

Baird

Rejoins Reinholdt, Gardner
(Special to The Financial Chronicle)

view of the above, it is my
materially less as the
considered opinion
that we are
years
go
by. A sorry outlook,
particularly for those who rely rapidly approaching the bottom of
this 1957-58 Recession, if we have
heavily upon life insurance, pen¬
not
already seen it — always
sions, savings accounts, and fixedincome securities such as bonds, barring of course some unforeseen
a 11 d
Unfortunate
development,
mortgages and preferred stocks,
domestic or foreign, which would
The Situation Today
have a very depressing effect upon
confidence. As a doctor
Earlier in this paper we showed public
the
figures for Gross National might put it, the crisis is past and
Product ($422.0 billion) and Per¬ the patient should recover, barring
sonal Income ($342.5 billion) for subsequent complications. As this
the
first
quarter of this year. is being written, word comes that
for the
Figures for the June quarter will the preliminary figure
will

another

available for

three

and

months;

ably

will

show

the

March

two

they prob¬

improvement
While

quarter.

indices

show

mixed

considerable en¬
couragement in the following:
find

pattern,

Steel Production, which reached

Federal Reserve Board's Index of

advanced

Production

Industrial

point in May, from 126 to 127
(1947-49 = 100). The first robin?
Or Spring?
*

Mo.

LOUIS.

ST.

buy

not

Reinholdt

Boyce

—

rejoined

has

Meyer

staff of

the

Gardner, 400 Locust

York
Mr.

Street, members of the New

and Midwest Stock Exchanges.

recently

has

Meyer

with

been

Waddell & Reed, Inc.

Form Brenan Co.
The Brenan

with

formed

Co., Inc. has been
offices at 37 Wall

Street, New York City, to engage
a
securities business. Officers

are

president

and

and Sue Newman,

vice

Snyder,

Mary

treasurer,

president and secretary.

one

also

itself

recession
beneficial

had

has

effects.

Most

A. B. Culbertson

this

opinion that

few

corpora¬

Opens
B. Cul¬
been

WORTH, Tex.—A.

FT.

bertson

has

Company

and

formed

with

offices at 4235 East

capacity tions have reviewed their opera¬ Lancaster to engage in a securities
increased tions from top to bottom, with a business. Officers are A. B. Cul¬
toward
greater
efficiency
steadily for
seven
weeks,
and view
bertson,
president;
William R.
reached over 63% of capacity—up and economy. People have been
Sarsgard, vice president; and Dee
about 35% from the low.
Crude put 011 notice that they must keep S. Finley, secretary-treasurer.
Oil Production
appears
to have their financial houses in order—
been stabilized at about 6.1 million they
cannot expect to weather
barrels a day, substantially
With H. Hentz & Co.
be¬ even a mild storm if they do not
a

low

about

late

low

abnormal

March,

1957
and

with

con¬

Electric Power Output
comparing
favorably

been
last

year's

Construction

and

figures;

Awards

substantial

has

of 7.6 million barrels,
nearly in line with

sumption.
has

47%

April,

the

peak

have shown

increase

recent

weeks.
Inventories have

Business

very

level

last

ber,

been

materially from the
August and Septem¬

have

and

with

been

kept in

line

declining sales. (March fig¬
aie
latest
available.)
Any

upturn in public confidence should
result

increase of sales,

hence

necessitate

tories.

ume

larger

that the

orders showed

new

and

inven¬

connection

this

significant

perhaps

vol¬

slight

The

Long-Term

which reached

Interest

Rate,

peak of 4.25%

August 1957, declined to 4.00% by
the

end

the

1958,

currently

Interest

between

and
a

and

of December,

the

fluctuated

3.55%

November

end

save

fair bit of what they earn.

the recession has had a
retarding
effect
upon
wages and salaries — though this
might not last long in view of the
inflationary aspects of the anti¬

3.60%

Rate

high

far
has

low of 3.35%; and is

bit below 3.40%. This

recession

it is
if the

closing,
opinion, that
had taken
ures, we

this
and

about

economic
that

fast,

far

condition.

whatever

those

effect

imme¬

mass

assuaging public
had
little if any
direct effect upon actual produc¬
sales

and

I
public

proved,
the

would have reacted just as well

was

had

government
the

people

simply

that

thus

itself

perhaps

panicked,

accentuated

Please

note

refer to

that

the

Joseph J.

—

affiliated with W.

Olive

East

362

Co.,

Now With F. 1. Du Pont
(Special to The Financial Chronicle)

LOS ANGELES, Calif.

Justice

with

has

Francis

become

with Reynolds &

—

Perry

associated
Co.,

Pont

Statler Center. He was

previously

Co\

re¬

nothing

nature take its course. Instead,

government

now

Nielsen

John P. O'Rourke

basically wrong, and then let

"government"

levels

that

Avenue.

business

cannot

convinced

Rate

reasonable

BURBANK, Calif.
Caruso

While

the

Boulevard.

Monica

had

measures

psychology

assured

of H. Hentz & Co., 9680

(Special to The Financial Chronicle)

fright." They

been added to

Ulmer has

W. G. Nielsen Adds

meas¬

almost exclusively upon

recession.

just

perhaps faster—and

Remember

tion

Santa

further
government

would have pulled out of

healthier

was

ard

the staff

anti-recession

110

recession

diate

BEVERLY HILLS, Calif .—Rich¬

measures.

substantial decline in the Interest
to

(Special to The Financial Chronicle)

Finally,
healthy

general.

improvement in April.

S2.7 billion.

considerable talk

Robert

joined

Conclusions

quite possible that they

reserve

the above

was

argued

was

re-1

which could support ad¬

in March about
It

Vz %

reserve

central

designed

ditional loans of

ures,

S450

reserves,

bank

reduces

Carter

Mr.

1 nomas

Dame,

normal

its

to
resume
dollars will not wishes
spending habits.

our

and

ures

144 %.

Notre

of about 7Vs%

goods and services
the future than they buy today;

buy any

reduced

(8) April 17th—Federal Reserve

both

nations.

and

Great Depression

expansion in the decade prior to

'when

the

about

is in order.

measured

spread

probable that

indication of deficit financing for

expan-,

in some
surplus plant capacity. The spec¬
ter
of
over-production
further

years,
out
of

had finally resulted

plant

of
Federal

total

the

recession that had

business

several
designed to "pull the nation

Surplus Plant Capacity

fact

Federal Re¬
discount

—

March 8th —President

(7)

spending,

the

6th

March

Banks again reduce

rate, this time to 2%%.

$7.0

reason.

Federal

liberalized

borrowed money.

mass

individual

replaces

psychology

3rd—Administration

March

serve

slowing-down process further de¬
pressed public sentiment.
Thus

supply.

money

Housing
Program,
designed
to
stimulate new housing
financed

entire

that

And

our

announces

tures were reviewed and in many

curtailed.

increase

the

University

having been
of their capital in
associated
with
Northwestern
commissions, simply because their
Mutual Life Insurance Company.
Hence we are reluctantly forced brokers called them, up and urged
Loewi & Co. has been an under¬
to buy. This certainly in¬
to the conclusion that both politi¬ them
writer and distributor of munici¬
cal
parties are committed to a dicates a return of confidence,
bonds for many years, spe¬
are pal
policy of ever cheaper money. In and shows that the funds
whenever
the
public cializing in Wisconsin issues.
other
words, it appears highly available
a

business

(4) February 19th—Federal Re¬
Board reduces reserve re¬

serve

grad¬

uate

administration worried!

over

its

duction and employment. Business

sion

Re¬

quirements of banks by l/2%, thus
making more funds available for

Such

l'ear

21st—Federal

January

Banks again reduce discount

was

public
tailing

cases

automat¬

rate, from 3% to 2%%,

1946.

wonder that a

which

borrowing,

stimu¬

also

ically increases our money supply.

serve

above, it is little
fair segment of the

market.

stock

the

419.79, off almost 20% from the
peak of 520.77—the largest decline
In view of the

js de¬
trading in

to stimulate
common stocks, and hence bolster

with the Dow Jones Industrials at

since

reduction

This

securities.

further

substanial

ments—a

A 1950

the

and

John

O'Rourke,

of J. P. O'Rourke

the

passed

away

attack,

June

Ex¬

65.

Sr., partner

& Co., Chicago,

following
23rd

heart

the age of

Volume

388

Number 5758

The Commercial and Financial

Chronicle

(129)

Believes April

Public

Utility Securities

Central Electric & Gas Company

likelihood

combination

ooerating and holding

Natural

Gas

(and

lesser

Natural
Gas).
Telephone
through the following subsidiaries:

from

amount

operations
Annual

Revenues

Company
Virginia Tel. & Tel. Company.
Southeastern Telephone Company

1.9

51
59

$22.0
'The telephone subsidiaries own and operate 170 exchanges
serving 276,701 owned telephones in various parts of Iowa, Minne¬
sota, North Carolina, Wisconsin, Virginia, Illinois, West Virginia
and' Florida;' The proportion of dial phones increased from 3%
to 80% during the past 12 years, the latter percentage being above

the

dial-automatic

nationwide

Fund

the
to

report

average of the independent tele¬
By the end of 1958 it is expected that over
86% will be dial phones.
One of the Central subsidiaries was
the first independent telephone company to provide customer
toll-dialing on a nationwide basis; it was also one of the first
in the independent field with automatic toll-ticketing and cus¬

same

characterizes

change

the

unfavorable.

second

"During
year,"

he says, "general business activity
continued to decline at a rapid

toll-dialing.
of the telephone subsidiaries reported higher earnings
last year excepting Southeastern. The latter company in March
1958 filed an application with the Florida
Commission for a
substantial increase in service rates.
Central Telephone also
requested an increase in North Carolina.
The system's earnings record has been excellent, as indicated

rate and the decline

by the following

continued, al¬
slowly, into April.
The
contraction, measured from
the 1956 high point, is enough to

Year

rank

Approximate

$1.05

Price Range

$1.21

1.59

1.10

.85

17—15

1.37

.99

.80

18—14

1950

1.03

.93

.65

10—

$5.09

■.

^Current

The

other

>.•

*To

rate.

.10

%r^N33'--v-,'

.46

i\.„

,'<■

$4.78

unique

$40,746,290

share to $43,551,051 or
share in the six months
a

13
a

banks

in the

described

On April

report.

1957

1958

growth, leverage and improved efficiency.
Construction expenditures last year totaled nearly $21 million
compared with less than $12 million in 1956. The 1953 program
is expected to approximate $15 million.
The company hopes to
add 19,000 telephone stations this year, and 2,500 new gas and
electric customers. Funds needed for the 1958 construction pro¬
gram are expected to be
As of Dec. 31, 1957

against the banks'

provided by subsidiary financing.
the parent company's capital structure

equity approximated 35%. Common
stock equities for the five telephone subsidiaries ranged between
46% for Central Telephone and 59% for La Crosse Telephone.
recently

quoted

over-the-counter around 20

yield 5%. It sells at only about 12.2 times
earnings of $1.34 for the 12 months ended March
to

the consolidated
31, 1958.

Boston Edison Co. is an

First Boston Group

Underwriters,

—

International

Inc.

has

been

formed with offices at 1225 Wazee
to

Street

engage

business.

also

funds

supplies

electricity

of Boston

4.78% Preferred Stock
are

Corporation

offering pub¬

(July 10) an issue of
shares of Boston Edison

licly today

250,000
4.78%
per

series,

stock,
$100, at $101.80

preferred

cumulative

Co.

par

share—a yield of 4.695%.

Proceeds

from

the sale will be

applied to the payment of shortterm bank debt, incurred in carry¬
ing out Boston Edison's construc¬
tion program.
The stock has a non-refundable

feature

1963.
at

the

prices
share
to

prior

June

30,

Otherwise, it is redeemable

option of the company at

from $107.80 per
before June 30, 1963,

ranging
on

$102.80

per

source

decline.

But

into

went

loans

reduced,

were

the

investment

market.

Here, too, the banks had
to accept yields that a year earlier
they would not have considered.
But three

of the banks had

in loans compared

creases

in¬

with

earlier, \nd the one with the
largest decline showed a shrink¬
age of only 8.8%. And if averages
mean anything, the year-ago com¬
parison shows a decline of only

after June

30, 1973.

the

cities

(except the Charlestown

district), Somerville, Newton,
Chelsea, Waltham and Woburn, in
the towns of Bfookline, Arlington,
Watertown, Framingham and in 30
smaller

other

Massachusetts.

towns

also

supplies

generating plants, to over 700 cus¬
tomers in
parts of the City of
Boston and is also engaged in the
business of

ably follows that

to* any

down

the

were

banks

volume was
great extent,
of the reduc¬

cause

months

ended

May

31, 1958, Boston Edison's total op¬

erating

revenues were

net

and

income

$106,129,395

was

$9,382,805.

For the 12 months ended Dec.

1957,
were

was

total

operating

31,

revenues

$103,866,216, and net income

$9,230,660.

•

minor degree, and their data

omitted because of their trivial

are

size.

Another feature lin the mid-year
is the sharp increase

statements

invested

has

umn

assets.

in recent

quarter

shown

after

Quarter

col¬

this

years

mixed

trend,
almost always the changes
from year to year were tco small
to have significance. But for the
a

and

June

banks

date

only

showed

of the 13

one

minus

figure,

and. that only about one-half of a

point. V Irving Trust's
■
22%
above
June

percentage

increase ,was

1957; Guaranty mid Manufacturers
Trust .^ifractiopglly
above 5 20%r

TlifeV;hvdii|i^.^oi;?'jthe,-.'^rouphave

i^ot ^eii^ib

re-

u'atio\ that :

mpiiy moansu..

This

j?6$partly:# - reflect
the reduction of reserve;,
requirements against deposits. We
can feel
encouraged, here, for it

tion

fairly

opinion

widespread

that further easing of this reserve
is in prospect.
Many authorities
believe

will

that the
off

even

Federal Re servo

the

percentage re¬

differential

serve

tween that

cities

that exists be¬

of the central

reserve

York and Chicago)
and the reserve cities: (most oC
the other large centers about tho
"j /')
country).
(New

Grunwald V. P. of

Henry Montor Associates
Md,

BALTIMORE,
Grunwald

vice

has

Norbert

—

been

elected

Montor
Associates, Inc. Mr. Grunwald is
manager of the firm's Baltimore
office, 7 South Street.
;;
president

Henry

income

Officers

are

Harold

item

Now Arnett & Co.

item

which

of the banks had profited by

securities.

Arnett

the

not

Street.

basis. We have

semi-annual

not

reporting,
whose amounts were trivial.
Here

those

the amounts

are

reported

$5,612,014

Bankers Trust
Chase Manhattan——-

W. L. Lyons Branch

7,677,451

Lyons

GREEN, Ky.

Co.

office

branch

linden the

has
the

—

opened

Helm

Morgan & Co.—__

Trust

management of J. Mur¬

LOS

ANGELES, Calif. — Jack
Ryff and Haig Toroian are
with

now

The

James

Fallon

vice

Boston Stock Ex¬

change.

25 Years for

Dempsey-T egeler
Dempsey-Tegeler & Company,
St. Louis, members of the New
York Stock Exchange, is celebrat¬

its

Col. R. W.

Hughes Opens

(Special to The Financ ial Chuqnicle)

DENVER, Colo.

the period when the
seeking funds to put

they utilized

little
take

ert

occasion for
losses; and, while
or no

of them had paper losses of
or
another, those that

Hughes

—

was

Street.

Co.

Jacwin & Costa Branch

kind

one

realized were in no sense

time.
to

slow

banks

Some

cash

for so short

size above listed

have

large

been

profits

JERSEY

CITY, N. J.

—

Jacwin

Inc. has opened a branch
office at 1 Exchange Place under
the direction of Irvin Wi Jac\\dn.

& Costa,

(Special to The Financial Chronicle)

Lorraine C.
staff of
Columbia Securities Co. Inc., of
Wyoming, First National Bank
Building.
DENVER, Colo.

Towner

has

—

joined

OVERSEAS AND

NATIONAL

the

GRINDLAYS BANK LIMITED
Almaigamating National Bank of India
and Grindlays Bank Ltd.

THE HANOVER BANK

Ltd.

NEW YORK

Head Office:

Form

Pickett and Charles

have formed

United

—

Leroy

Spahr

Investments,

with offices in the Walker Build¬

ing, to
ness.

BISHOPSGATE, LONDON, E.C.2

United Investments

WASHINGTON, D. C.

engage

Both

were

securities busi¬
associated

with

Washington Planning Corporation.

Col*
formerly with Walter

Pennsylvania

1029

Colonel Rob¬
conducting a

securities business from offices

investments, Hughes

short-term

many

Joins Columbia Staff

the

James.

Whiteside &

Winslow, Inc., 24 Federal Street,

Farmers

them

were

Co., 7805 Sunset Boulevard.

Bank

loan market,

was

—

elected

been

members of the

were

mainly
there

(Special to The Financial Chronicle)

Co.

As during
banks

Two With J. L. Fallon

City

'Includes

Hotel

Hill, Jr.

ray

2,756,745
9,177,917
2,174,553

Trust

Hanover Bank

has

president of Chace,

City— *1,'770,000

National

First

Guaranty

BOWLING
L.

Corn

Mass.

BOSTON,
Nuland

ing the 25th anniversary
founding in 1933.

20,938,216

Exch._~

Chemical

Of Chace, Whiteside Co.

profits for the half:

securities

James G. Nuland V. P.

year

noteworthy

most
extent

the

was

omitted

Company. Offices are at 112 West
189th

practice for all banks generally to
report on this item at dates other
than the year-end; but some do

SEATTLE, Wash. — Robert D.
Arnett is now conducting his in¬
as

the

Probably
some

business

from

and five reported this income
higher.

ago,

sales

vestment

reported

five

income

loan

selling electrical appli¬

reported in detail,

increases

investments,

the

that

showed

lower

securities

ances.

For

;

securities, hence they, are, pot
listed above. Others have done so

It therefore prob¬

average.

James, secretary-treasurer.

eastern

steam, chiefly from its own steam

year

Miller, president, and Robert W.

operat¬

ing public utility engaged in the
electric and steam businesses.
It

Offers Boston Ellison
Boston

deposit

business recession, and rates were

in the

First

re¬

loans into low-yield invest¬
ments, mostly government bonds.
We
say
"obliged"
as
1 o a 11 s
dropped off because of the general

from

DENVER, Colo.

16%, but including the minority interest in subsidiaries the

associates

ing

all

percentage of common stock

The

readjustments

•

(Special to The Financial Chronicle)

47% debt, 18% preferred stock and 36% common stock equity.
On a consolidated basis parent company stock equity was only

and

higher than

At least a part of this
figure
comes
from
the

matured

for the

greater

was

average

liability.; but whatever the
of

Bank Stocks

11%%

was

downward

Internat'l Underwriters

stock

1958

tion in income from loans. Of the

paid 800% (the present rate is ten times that of 1945). These
figures reflected the upward trend resulting from a combination

The

City

the

year ago.

higher

rates

system telephones showed an increase of 16% over the end of 1956.
During the 12-year postwar period assets increased 325%,
revenues 436%, the balance for common stock 507%, and dividends

about

this,

date:

First, deposits. Only one of the
large city banks reported lower

not

date.

Hickory (North Carolina) Telephone Co. and also a 75% interest
in the
Lexington (Virginia) Telephone Co. Other telephone
were

the

ending May 31.

system's rapid growth has been due in part to acquisitions
companies.
In 1957 Central Telephone acquired the

changes

than

severe

course

of the Fund rose from

(although of

catastrophic drop of 1929-32)."
The Axe-Houghton Fund A re¬
port shows that total net assets

1956

York

little less than the 1920-

17—13

20—14*

1955

1945

severest

.90

$i.oo;$39

of the

one

1937-38

much less

Paid

Learnings

business declines since World War

Dividends

Earnings

(Millions)

this

I, only

Parent Co.

1958—1957_

though

summary:
Share

New

statistics

un¬

the first two months of the

Each

Consolidated

bank

the

mid-year

serves

results and that "this and the

tomer

Notes

deposits, while the

time, Mr. Axe feels
that second quarter earnings of
many corporations will probably
be a little worse than first quarter

phone companies.

Revenues

■

deposit volume, the
extent of the next recovery make
banks can put a substantial pro¬
a
conservative attitude still.: de¬
sirable.'"1'"
.' portion^ to work, thus increasing
earning assets. In the aggregate
He finds two important changes
the improvement was large.
in the investment situation during
As
to earnings, using
the 12
the
six months covered
by the
months endbd June 30 about three
report. The first, he says, is the
of
the
banks
showed
modestly
continued
improvement
of
the
lower figures. This means that the
money market, "partly because of
banks in general are beginning to
the effect of general business con¬
the
shift
they have been
traction but to a larger extent of feel
obliged to make out of high yield¬
Federal Reserve operations."

3.8

•

This Week

severest

certainty concerning the time and

3.7

semi-annual

At the

58%

5.3

La Crosse Telephone

the

letter accompanying

fund's

Kansas-

.■>'

$7.3

By ARTHUR B. WALLACE

will

by Emerson W. Axe,

shareholders.

Parent Company
•
Interest

(Millions)

Company

Middle States Telephone Co. of Illinois

conducted

are

one

President of Axe-Houghton

including Lincoln, and in
Dakota; gas is purchased from

Nebraska

Central Telephone

become

I is held out

The parent company itself furnishes natural
gas in 56 communities
in eastern and southeastern Nebraska,
Northern

April

business declines since World War

with widespread interests in the middle west and south.
Telephone operations contribute about 56%" of system revenues,
gas 41% and electricity 3% (water interests were sold in 1955).
company

nine communities in southern South

that

prove1 to be the low point in what
has

Bank and Insurance Stocks

■

Of the Recession
The

Central Electric & Gas is

Will

Prove Low Point

By OWEN ELY

Bulletin Available
•

London Branches:

SQUARE, S.W.I
PARLIAMENT STREET, S.W.1

»^

13 ST. JAMES'S
54

Bankers to the Government
UGANDA, ZANZIBAR

in: ADEN, KENYA,

A SOMALILAND PROTECTORAT*

Branches in:

CEYLON, BURMA, KENYA,
UGANDA,
ADEN, SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA*

Laird, Bissell & Meeds'
Members New York Stock Exohsnfre
Members

Stock Exchange

NEW YORK 5, X. Y.

Telephone: BArolay 7-8560

INDIA, PAKISTAN,

TANGANYIKA, ZANZIBAR,

American

120 BROADWAY,

Bell

Teletype—NY 1-1248-49

(L. A. Olbbs, Manager Trading Dept.J;.
'

Specialists in Bank Stocks

The Commercial and Financial Chronicle

Thursday, July 10, 1958

(130)

Seaway Progress and Prospects
aspects of the Seaway proj¬
which have been created by

conflicting assertions made in the
course <o£ the <extensive debating

project has

Which the Seaway

been subjected.
the

■/y

has frequently been
one-sided over-emphasis on some
uncertainties to support partisan

This

viewpoints.
obscure

tended to
benefits
project of

has

traffic

the far-reaching

With

St.

canal

Lawrence

considerable

system

by the levels in the several

which is being superseded

developed

present form and dimen¬
sions about a half-century ago. Its
its

which

years

between tne preparation
of original cost estimates and the
different times at which contracts
elapsed

modernized Seaway facilities.

That canal system was

construction

regard

costs, there has of course been a
increase
in
price

within the limitations of the shal¬
low

actually placed for various
freight traffic recently reached an stages of work and equipment.
Another factor to be considered
annual volume of approximately
13 million tons, which represents with respect to costs is that the
were

Seaway project is intended to be
a
modern waterway which
will

such great

construction is

with which actual

being completed.
As matters stand,

^ >
<
the " Seaway
will be an accomplished fact in
about 11 months.
Naturally any

contains

Canadian counterpart.

our

which .can ac¬
having a

locks

For

vessels

commodate

facilities

the

for

Lakes

Great

Basin, which has economic poten¬

that some people are tialities as great and as diversified
impression
that the as those served by any major
Seaway project also embraces the waterway elsewhere. Almost half

the

length of not more than 253 feet
or
beam not exceeding 44 feet.
These
limitations have resulted

example,

counterpart,
lock

two locks, and
our
Canadian

our

locks

five

deepening of the connecting channels

Erie to

Lake

above

which

1,650

are

Lakes

Great

the

between

controlling

total

the

United .States

ex¬

ports of non-agricultural products
to

destinations originate

overseas

Such is not the in that area. And that area is also
The deepening of the con¬ productive of much of the agricul¬

depth of 27 feet.
case.

necting channels above Lake Erie
is a separate program which is

the Corps
Engineers of the U. S. Army
with public funds appropriated by
carried

being

out

tural

exports
the

ably

potentialities

the

prob¬

are

greater in relation

even

that

country.

this

from

Canadian .^ide

border the

country's

economy.

The State of

V--"*

major
In the course of the next few part of this highly important re¬
weeks
a
major portion of the gion of domestic and foreign com¬
United States section of the Sea- merce.: Not only does this state
broad base of economic
Way and a part of the Canadian have a
facilities will be opened to 14-foot capacity
for further expansion,
but it is in an unusually favorable
shipping through the area known
as
the International Rapids Sec¬ geographical position
to benefit
tion of the St. Lawrence River. from water transportation.
This will be necessary because the
Michigan's Unique Position
raising of the water pool of the
Congress. .'•'

guide walls at St. Lawrence

have

entrances

the

under

a marked growth in the course of
implications of a
a decade, and there is
no doubt
magnitude.
permit the expeditious handling of
Then
too, several decades of that this volume would have been
much greater if there had been ships, rather than merely provid¬
argument and controversy about
ing minimum facilities to meet the
the Seaway prior to the authori¬ sufficient capacity to accommo¬
bare requirements of navigation.
zation of the project have appar¬ date somewhat larger ships.
In this connection we have co¬
The
old canal system
has a
ently caused quite a few people
ordinated our plans with those of
to be unprepared for the rapidity controlling depth of 14 feet and

and

Certainly the Seaway will pro¬
improved
water transport

vide

It appears

is now possible

and overseas, than

new

these discus¬

course

Construction Costs

the lower St. Lawrence River

there

sions

made

develops. There will be no out-of-

some

ect

tons to almost 116 million tons.

Seaway Authority of Canada, with
responsibility for the construction,"
pocket deficit unless some en¬ operation and maintenance of the
tirely unforeseegblv contingency Seaway works in their respective
•territories. *
•
;
< \ <:-w
should intervene.
will

that

first page

Continued from

project will

power

flood out the present St. Lawrence

Michigan is

With the exception of the south¬

boundaries of the state, Mich¬

ern

length in order to permit Canal system west of Cornwall, igan has a ..Great Lakes water
project of such magnitude and in the development of the so;
canaller
type
of
vessel the tie-up of several vessels while Ontario.
frontage on all its sides. It has the
great possibilities developed many called
awaiting their turn to pass through
further
advantage of having
a
problems, but they have been met having a deadweight capacity of
Deep Draft to Open Next April
a
lock. If we had reduced the
shoreline on the channels which
*and will continue to be solved as something less than 3,000 tons.
The opening of the Seaway for
length of the guide walls of our
connect four of the Great Lakes.
Seagoing vessels of the general
they arise.
Before examining the basic sub¬ cargo type can transit with about locks to save costs, our portion of deep draft navigation at a con¬ Iii these respects Michigan holds
the Seaway would at times be a trolling depth of 27 feet through¬
a
unique
position
among
the
jects which have been given con¬ 1,500 tons.
its
entire
length will take states on the Great Lakes. Detroit
In contrast, the Seaway locks source of inconvenience to waiting out
siderable publicity it might
be
feet

of the high¬

well to review some

project.

lights of the Seaway

lenghts

Project

„;V;
basic

The

y.'

will be that of providing a
waterway of 27 foot depth be¬
tween the Great Lakes and Mon¬
treal which can be navigated by
way,

having up to nine or 10
times the capacity of ships that
are now accommodated in the ex¬

vessels

isting 14-foot canal system along
the upper St. Lawrence River.
By the time the project is com¬

pleted,

excavated

of-about

total

cubic

million

been

have

will

there,

112

yards in the con¬
new
channels and

and Mon¬

treal.

Each of these locks will have a

length

feet

768

about

and a width of 80 feet.
dikes

Extensive
erected

various

-in

aids

numerous

have

been
and

areas

navigation

are

being
installed.
Substantial
bridge construction has been re¬
quired to provide crossings which
will have
above 'the

£i

clearance of 120 feet

Included in
new highlevel suspension bridge having a
length of almost a mile between
Rooseveltown,
New
York
and
this

Seaway.

construction

Cornwall

Island

the Canadian

dike

training

our

Our

ing general cargo will be accom¬
modated in sizes ranging up to
about

9,000

deadweight,

tons

destinations.

overseas

well

known, the larger
of vessels, the

the cargo capacity

smaller the operating cost per ton
of

capacity.

sels which

The much larger yesbe accommodated

can

movement

and from

made

costs

have

been

minimum

excess

re¬

the

vessels

built

particularly
Other

recent

the

years,

Great

factors

necessity of replacing the

existing narrow roads with mod¬
ern highways to carry a large vol¬
traffic

ume

bridges

approaches

oth%r>facilities

and

in¬

In
any
project
having
the
bonus, further savings will
accrue
to
shippers through the magnitude and complexities of the
elimination of the risks of damage Seaway, there would
inevitably
to merchandise or weight losses or be
problems that arise as the

which

inherent

work progresses and I am

glad to
to varying degrees in the tran¬ pay tribute to the splendid job
shipment of many kinds of cargo. which has been performed by the
of Engineers as our con¬
Additional economies in trans¬ Corp
portation costs will be possible as struction agent.
a result of the faster transiting of
In the long run, the improved
ships through the Seaway facili¬ features of the project will pay
are

ties. As compared with 21 locks in
the present St. Lawrence
canal

off

terms

increased

traffic

capacity and reduced ship operat¬
system, the Seaway will have only ing expenses. Our latest estimate

seven

locks between Montreal and

of the cost of

Lawrence

Lock; the other
Seaway channel

the

Eisenhower

passes
near

under the
the

Beau-

harnois locks in the Canadian por¬

tion of

the project.

There

other

are

interesting

items of construction too
ous

mention

this

numer¬

occasion.

AH in all, the project as a whole
will be an outstanding example
not

only

of technical skill and
ingenuity in overcoming great
natural barriers, but also of the
ability of two nations to work to¬
gether in carrying out a monu¬

River

well

efit

their

own

Savings in Transportation Costs
Fundamentally, the Seaway will
permit -the- shipping of a far
greater -volume of freight more
expeditiously and more cheaply
between the Great Lakes and ports

amortization
lor

Altogether,
the
Seaway
will
have possibilities for substantial
dollar savings in
annual trans¬

both

portation costs. In fact, the econ¬
omies in transportation costs made

tion

possible

through

Seaway will be
pressive in view
in

the
of

use

even

the

the
im¬

increase

general price levels and trans¬

undertaking

world trade.

other

improvements will by themselves
result in savings ranging to more
than $1,000 per vessel per trip in
terms of ships' time,
depending
upon the size of a vessel.

for the ben¬ portation costs that
countries and place since 1953.

mental

have

taken

than

debt

countries

both

$26

million.

will

Keep

interest

less

are

mind

with

can

consequent

book

deferred

deficit,

Seaway

discussions

project

over

many

possibilities of the project, but in
general those differences have not

What

areas.

has

Canadian

and

United

Engineering-wise the construc¬
of

the

Seaway and power
projects has been coordinated, but
they are separate undertakings in
all respects. The power project is

joint undertaking of the Power
Authority of the State of New
a

York

and

the

Commission

Hydro-Electric
of

Ontario.

Lawrence

Seaway

Development

Corporation and the St. Lawrence

been

has

questioned

potentialities of the Seaway route
could be, and would be developed
in the light of facilities and con¬
ditions on the Great Lakes, espe¬
with

cially

respect

overseas

the

strategic position
on the con¬
necting channel through which an
enormous
volume
of
shipping
having

waterfront

passes

between Lake Erie and thg

upper

lakes.
benefits which

The

rived

Let

examine

should

which

factors

be considered

in this

con¬

nection.

The

stimulating effect
transportation
has been vividly

cost water
merce

strated

recent

of low-

will be enhanced by the
opening of the Seaway. In fact
i'oresighted
enterprises are
al¬
ready developing their business in
of further expansion
facilities are in

preparation

when the Seaway

Among the interesting

operation.

examples is the direct exportationof

agricultural

St.

Lawrence

109

the

ing developed through the Port of
Muskegon, Michigan. Savings are
also

achieved

being

products

in¬

of industrial
this route.
; .

over

field

the

> />

shipment

creasing

shipbuilding,

at Bay City has obtained
Navy contracts of over $60 million

yard

construction of four

for the

war¬

be delivered
Seaway. Another
Michigan shipyard now has under
construction a large cargo vessel
which
through the

ships

are

■rj

dimensions. At this
we
might also refer to the
Chemical Company who will

Seaway

time
Dow

establish its

marine terminal

own

the Saginaw

River.

I do not wish to convey

the im¬

exclusive

potentialities
converted

years

traffic

in 1931

1956.

the Great

Great Lakes. The extent to which
the

ton-miles

billion

represents a 12-fold in¬
a
period of 25 years.

Major waterways in other parts of
the world have also had a large
cargo

movements.

Freight traffic on the Manchester
Canal in England tripled between
1946
and
1956.
Cargo
shipped
through

the

creased

from

Panama

Canal

five million

in¬

tons in

1915 to 50 million tons in 1957.-

the

case

the

Suez

Canal,

ships
transiting the Canal is the only
comprehensive
index of traffic
registered

tonnage

Seaway

of the

realities

into

will

large degree upon
ports on

also depend to a

the facilities available at
the Great Lakes and

other factors

traffic

patterns.

affect

which

handicaps to be met in
connection but those condi¬

There

this

are

tions

Seaway will automatically
:;d
result in a deluge,of new business
to this state and elsewhere on the
of the

are

Lakes.

the

products

route, which is be¬

demon¬

from nine billion ton-miles

de¬

advan¬

tages

on com¬

by the
growth of traffic on our inland
waterways. That traffic increased
to

can

natural

these

from

pression that the mere availability

trade.

increase

States Governments.

been the extent to which the

This

the

Sea¬

stimulating ef¬
fect, upon the
economy
of the
Great Lakes basin and adjacent
would have

crease

revenues

that the

been due to doubts
way

will
retire the total cost advanced by

payer's burden. Toll

aware,

indebtedness

the

there have been differences
opinion regarding the various

tax¬

that this investment is not

Power

and

of course, that an The Seaway is, of course, a project
initial period of traffic develop¬ of the Federal Governments of
ment will be required to build up the
United
States
and
Canada,
cargo volume, but we shall not be which was authorized by legisla¬
tion
of
each
country
charging
starting from scratch. During the
development period, amortization their respective entities, the Saint
We

developed

itself

years,

can

extensive

the

Seaway

obvious

deterioration

the

for

initiative is exerted.

proper

might be mentioned, including the

cluded in the Seaway project.

Great Lakes.
As

the con¬
struction of port facilities, indus¬
trial plants and ships involving an
aggregate
expenditure
of
well
over
$100 million as a direct or
partial result of the prospective
availability of the Seaway.
This is a good beginning but it
is still only an entering wedge in
opening -the door to the oppor¬

Lakes.

cost

additional

;

have

programs

quirements, in order to provide a
waterway
having
better
char¬
acteristics for navigation purposes
than was originally contemplated.
Also, we have had to keep in
,
mind
the
development
6f in¬ tunities which
creased
lengths
and
beams
of from the use

considerable ton¬

of freight to

dredging

current

increased in consequence of chan¬
nel improvements and excavations

services between the Great Lakes
and

cost estimates.

Ocean vessels carry¬

in Labrador.

Two tunnels for highway traffic
also
been incorporated
in
the project. One of these tunnels

the boundary.

contained

i b u t e to the
transportation pat¬
nt

constructing United
Lake Ontario. The old maxim that States and Canadian portions of
"time is money" is very applicable the Seaway is on the order of $450
in the operation of ships, and the million and we estimate that the
reduction in lockages on the St. average
of annual expenses,

side of

c o

changing of
a result, large
deadweight of project for the elimination of cur¬ terns and the stimulation of tl:(>
rents which are not desirable from economy
Tof large areas in the
25,000 tons will be able to
the standpoint of navigation. Like¬ United States and
Canada. The
navigate between the Great Lakes
and the lower St. Lawrence River wise, no provision had been made forerunners of these developments
for navigation aids in the original are already becoming evident in
all the way down to Seven Islands

lakers

nage

usable

inevitably

add

struction' of
in Seaway facilities will not only
deepening or improvement of ex¬ have lower ship operating costs
isting channels. Approximately 3 per tons of capacity, but will per¬
million cubic yards of concrete mit
savings in transportation costs
will have been placed, chiefly in
through the elimination of the
the construction
of seven new
expense
incurred in the
tran¬
locks which will raise or lower
shipment of cargo to small canallarge vessels by a total of 226 feet lers that is now involved in the
between Lake Ontario

place next April. That event will

traffic. We also found it advisable

over

of the Sea¬

purpose

vessels and would slow up Seaway

having

ships

to 730 feet and beams

74 feet.
having

Seaway

Reviews Highlights

accommodate

will

are

not insurmountable.

example, it has been said,
closing of navigation on
Great Lakes
and upper St.

For

that
the

the

Lawrence River

arrangements
resultant

with

during the winter
dual
traffic

necessitate

would

for

the

off-season

inconvenience

and

importers and
ex¬
porters were to use the Seaway
route during the open navigation
if

expense

season.

this

In
* vite

that
cn

connection

would

in¬

attention to the fact
the 8-month navigation season
your

the

that is available. Between the first

vented

operations in 1870
and
1955, the last year of full
operations
before the
Egyptian

Great

Lakes has not pre¬

marked

growth

im¬

ports

year

Suez

take-over, the net registered ton¬
nage
of
shipping
through
the
canal

rose

from

half-million

and export shipments
through the St. Lawrence gateway
during recent years. For compara¬
tive purposes, it might be well on
this occasion to note the develop^ment

overseas

cargo

traffic at

if:

Volume

188

Number 5758

the port of Toronto since

similarities

many

The Commercial

find

between

the
economies of southern Ontario and

Michigan.

As you know, Toronto is the
center of a highly industrialized
region having a widely diversified
output of manufactured products,

;

ability

and Financial Chronicle

Great

Lakes

ports

accomplished fact after a long
struggle and the time has now
for positive and objective
cargo.
Enterprising communities action by all, to reap the benefits
have shown that they recognize of this new
artery of water trans¬
the
need
of
making reasonable portation. This will involve con¬
shipments

general

preparations to enable their ports
to
obtain an equitable share of

come

structive consideration of the pos¬

sibilities

offered

including

automobiles^ machinery, Seaway traffic.

routei

electrical

merchandise, et

therefore,
direct

that

the

waterborne

note,

volume

overseas

cargo

loaded and discharged at the
port
oi Toronto rose to over 200.000
tons

during 1957:

crease

substantial in¬

the quantity

over

from

and

Toronto

-it economical

and

have

found

efficient to

use

the St. Lawrence route regardless
of the necessity of diverting some
-of their

shipments to other routes
the
season
of
closed
•navigation.
during
Of

course,

Great

past

firms

some

Lakes

which

developed

the

Seaway

tion
at

their

find

men¬

out of

many

names

contributed

promotion of shipping trade in the
of

Port

Carlis J.
the

high
performance.

the

praise

for

Port

imports

make

may

ports which

are

can

at¬

handle

vessels and cargo in the most ex¬

peditious and economical

manner.

some

appreciable

ests, but also increase the
of the

community
well

changes in order to
route shipments via the
Seaway.
We
believe, however, that with
the
relatively
few
exceptions facilities.
will be compensatory sav¬
ings in the long run through the
use of the
Seaway route.
(It has also been argued that

the ports on the Great Lakes

will

not have the

and

facilities

shipping services
the

labor

and

know-

how

required to handle a large
of
export
and
import
shipments in an economical and
expeditious manner.

-volume

Overseas Shipping
Such

■ -

argument does not give
adequate consideration to the fact
that
373

1957

there

were

regular line sailings

between :

the

Great

There
done

Seaway
doubt

still

order

quite

bit to

be prepared

traffic,

that

but

the

have

imagination,

for

genuity and initiative which have

high

Lakes

has

are

con¬

"The

well

ship¬

expansion of marine inter¬

all

phases

that

will

un¬

doubtedly take place is almost in¬
conceivable

to
the
imagination.
expansion in additional

How much

business

will

generated

Great Lakes shipyards will depend

entirely
on
the
initiative
imagination exerted by the

and
per¬

sonnel involved."

That
all

statement

forms

the

and

United

applicable to
activity in

of economic

Great

basin

Lakes-St.

adjacent

States

conclusion

and

let

Lawrence

the

Canada.

areas

say,

anyone

who endeavors to predict the de¬

velopments which will take place
in the economy of this Heartland
of

both countries

runs

the risk of

under-estimating
rather
than
over-estimating the possibilities.
Let

not

forget

that

the

de¬

velopment of industry and
merce

level

been

prominent

in¬

brought Great Lakes shipping and
the handling of bulk cargo to their
present

will

builder who recently stated:

business

whole. This

as a

known

by major ports
c.n the seacoast that they devote
considerable >effort
to
the
en¬
couragement
and
retention
of
shipping
traffic
through
their

there

spots that

challenge to all interests

Great

expressed

their

are aware

shipping and traffic

tracted to

The

the

ests

Navigation authorities
that

blind

create

Seaway opportunities

Stettin, Port Director,

members

Commission, Tom Reed,
Foster
Winter, Mayor Miriani. They are
entitled

well

cerned.

Detroit.

benefit not only waterfront inter¬

Seaboard
to

few

have

I make

the

exports and

necessary

result in "missing the boat" so far

may

patterns

have

traffic

through the

tively and actively in port plan¬
ning as well as stimulation and

tion
who

time

They are also aware that the
handling
of. ships
and
cargoes

and arrangements for the distribu¬

the

construc¬

At this

and

Obviously,
the
exporters
and
'importers of diversified products

Unless this

done, the in¬
created by the habit of
thinking in old established traffic
patterns and arrangements may

recorded

•in the preceding year.

•

hibitions

cetera.

It is of particular interest to

com¬
which has occurred in this

of efficiency
region during recent years has
dealing with the
problems of accommodating in¬ gone far beyond the prognostica¬
tions made only 10 years ago.
creased ocean traffic with equal
The Seaway will be an additional
efficiency. This is already being
element in the bringing about of
done
at
several
ports
on
the
will be capable of

Great

Europe, Africa and the Caribbeah.
In addition, there were 40 sailings
of
so-called
tramp 5 ships.
The
opening of the Seaway will stimu¬

The Seaway is about to become

years

Continued

from

page

Lakes

region and its
hinterland. Let me remind you in
this

connection
i t i

a r

the

Federal

has

already

that

Board

m e

the

for

essential

net. Ions

of finished

operation

Great

Lakes

through

the

have

routes

and

Seaway.

already

ports

Two
been

such

desig¬

steel

the availability of water¬
services and the experience

As to

required for the handling of ocean
ships and cargo, it has been alleged
the 3-month

that
son

the

versely

navigation

Great

affect, the

sea¬

will

Lakes

retention

ad¬

sufficient

supply, of trained labor
loading and discharging of

for the

seagoing

vessels

Lakes.

has

also

ports
been

the

investment

needed

provide the up-to-date equipment
required for the expeditious han¬
dling of

ships and cargo at
Lake ports. These are generalities
which convey a distorted impres¬
ocean

sion of the
as

Great

situation

Lakes

whole.

yet equipped to handle all types of
cargo,
but there are also ports
which

have

developed

the facili¬

ties, equipment, labdr and experi¬
ence
required to deal with the
general

run

expanding

cargo.

their

They

facilities

are

and

equipment to meet foreseeable ad¬
ditional

requirements

traffic.
No

one

Seaway

year ago.

At New York bank
clearings for the week ended July 5,
totaled $11,652,699,223 as against $11,362,097,881 for the same week
in 1957 and the 1957 Chicago totals were $1,044,273,471 compared

with

There's

anyone

questioned

the

loss of 5.9%

for

stampede among steel

1957.

By year-end, the $5-a-ton labor increase will have a

on the cost of making steel.
Corp., traditionally the price leader, wants no part
other producers seem determined
to wait out the corporation, according to the trade industry pub* lication.
Avery C. Adams, President of Jones^& Laughlin Steel
Corp. expressed a widely held opinion when he called it "com-'
mercial suicide" to change prices without such action by U. S. ;t

$10-a-ton impact
U. S. Steel

of its accustomed role, but most

Steel.

••
.'••,
itself what effect a price rise
now would have on the July 16 sale of $300 million worth of its
sinking fund debentures.
It would also feel better about an¬
nouncing higher prices if demand were greater, but there's slim
chance of improvement before August.
Obliged to pay their employees double time and a quarter
for holiday work, steelmakers ran their plants with skeleton
crews on July 4.
As a result, operations last week fell 10 points
to 53% of capacity.
Production hit about 1,430,000 net tons of
steel for ingots and castings.
Shipments will be substantially lower this month than they
were in June, but prospects are improving.. Delayed price hike
announcements set the stage for more hedging. Automotive sheet
;

The corporation may be asking

buying is still weak, but stainless producers feel the impact of
changes.
Demand for tin plate, galvanized sheets, send
reinforcing bars is helping to sustain the market. "Steel's", com¬

model

posite scrap price rose 67 cents last week to
a Chicago sale.

American Iron

$35.67 on the strength
.

and

Expected This Week

Steel Institute

announced that the

companies will average *90.8% of steel
capacity for the week beginning July 7, 1958, equivalent to
1,459,000 tons of ingot and steel castings (based on average weekly •
production for 1947-49) as compared with an actual rate of *85.7%
of capacity, and 1,376,000 tons a week ago.
<' '
Output for the week beginning July 7, 1958 is equal to about
54.1% of the utilization of the Jan. 1, 1958, annual capacity of
140,742,570 net tons compared with actual production of 51.0%
the week

before.

month ago the rate was *107.6% and pro¬
A year ago, the actual weekly production
placed at 2,015,000 tons, or 125.4%.

For the like week a

duction 1,728,000 tons.
was

*Index of

production is based on average

weekly production

users

metal working

"Iron Age" says the price hedgers apparently shot their bolt
June, when there was a noticeable bulge in steel output. The
for July is anything but cheering.
Some June business

carried over into the early weeks of the month, but it was not
enough to avoid the predicted July slump.

Still, the metalworking magazine reiterated its earlier asser-'
tion that the low point in the steel recession probably was reached

April, when the ingot rate dipped to less than 48% of
The July slump is not expected to be that severe.
Meanwhile,

rumors

have

been

circulating

that

electric energy distributed by

past week.

5, 1958, output decreased by 607,the previous week. However, it was
of the comparable 1957 week and
759,000,000 kwh. above that of the week ended July 7, 1956.
; '
For

the week ended July

000,000 kwh. below that of
44,000,000 kwh. above that

in Latest Week Declined Two-Tenths of
Preceding Week but Were 1L5% Under
Same Week a Year Ago

Car Loadings

Loadings in the week ended June 28 were 1,104 cars
below the preceding week and loading of

tenths of 1%

outlook

last

The amount of

beat the expected

price increase, "The Iron Age," national
weekly stated on Wednesday of this week.
in

Held to Its Lower Trend the Past Week
the electric light
and power industry for the week ended Saturday, July 5, 1958,
was
estimated at 11,150,000,000 kwh., according to the Edison
Electric Institute.
Output continued its downward course the
Electric Output

From

August

of tworevenue

freight for latest week ended June 28, 1958, totaled 626,573 cars,
the Association of American Railroads announced.
This was a
decrease of 106,160 cars or 14.5% below the corresponding week
in 1957, and a decrease of 128,706 cars or 17%
sponding week in 1956.
Coal loading amounted to 122,064 cars, a
cars below the corresponding week a year ago,
464 cars above the preceding week this year.

below the corre¬
decrease of 4,896
but an increase of

capac¬

some

mills

Passenger Car Output Skids to a Nine
41.282 Cars in the Week Ended

been planning to ship June carryover orders at June prices
even before U. S. Steel had decided against a July 1 price boost.
Whether true or not, this competitive angle is fast fading from

July 4 holiday as the

the picture,

Month Low of
July 4

plants in that week,

had

Several hundred

thousand auto workers were

industry closed nearly

given a "long"

60% of its assembly

already begun shutdown of production lines preliminary to out¬

"Ward'p Automotive Reports" said.
Co. and Chrys¬
ler Corp. out-producing General Motors Corp. saw U. S. car and
truck production skid to a nine-month low of 41,282 vehicles.
The week's total was 62.1% under 109,013 (revised) built in
the week ended June 27, and compares with 87,733 for the same

put of 1959 models.

week in 1957,

and the stage is being set for the

expected

August

increase.

The shutdowns,

"Iron Age" says the steel business is due for a slow but

steady

upturn beginning in August. Part of this pickup will be due to
renewed ordering by the auto companies, some of whom have

has

$1,109,934,089,

Steel

has

questioned
the
ability of the Great Lakes marine
industry to handle bulk cargoes,
nor

weekly clearings will be 6.1% below those of the corresponding
week last year.
Our preliminary totals stand at $20,293,781,014
against $21,611,721,152 for the same week in 1957. At this center
there is a loss for the week ending last Friday of 6.0%.

ity.

Of course, there are some ports
on the Great Lakes which are not

price tags.

Course of Bank Clearings

clearings

this week will show a decrease compared
Preliminary figures compiled by the "Chronicle"
based upon telegraphic advices from the chief cities of the coun¬
try, indicate that for the week ended Saturday, July 5, clearings
with

the

asserted

that the lack of year-round traffic
will
render
it
uneconomical
to

make

Bank

for all cities of the United States for which it is possible to obtain

nated."

front

The

American

overseas

If prices were advanced just $5 to match labor cost increases,
profits would be 4.8% of sales. To maintain the first quarter
earning rate' (5%), steelmakers must raise prices at least $5.75.,
a ton. They would still have trouble because suppliers' labor costs; <
will also rise.
Purchased goods and services will carry higher -

for 1947-1949.

routes

flag shipping services between the

would

499

demonstrated that it is alert in the

establishment

prices (averaging $160 a ton) and wages remained at first
levels, sales would be $5.4 billion, of which 90% ($4.9 billion)-,
be pretax costs and 10%
($544 million) would be pretax
profit. Profit after taxes: $272 million, or 5% of sales.
. .t
Last week, employment costs went up about 25 cents an hour
or $5 a ton
(20 manhours for each ton). Result: 34 million tons
cost $170 million more to produce than they would have during
the first half.
Subtracting $170 million from $544 million (the
profit anticipated at old wage rates) leaves a pretax margin of
$374 million. Profit after taxes: $187 million or 3.4% of sales. / i
half

operating rate of steel

Construction, including maintenance, received 824,091 tons
directly from mills during May, 1958, an increase of 170,000 tons
over
April. Heavy structural shape shipments totaling 346,485
net tons'in May, 1958, were up 45,000 tons over
April. Increases
were also recorded in other construction
products including stand¬
ard pipe, piling, plates and reinforcing bars.

Great

steel for ingots and castings (vs. 38 million in the first,
About 34 million tons of finished steel will be shipped!,.

Rise in Steel Production

parts of the world having an ap¬
preciable volume of trade with
the

half).
If

The

products in May, against 4,372,971
tons in April and 6,972,091 tons in May last
year.

tons

to come.

the expansion and frequency
Great Lakes
services to; any

late

price increase of $5.75 a ton is mandatory if the steel in¬
dustry is to maintain first quarter earnings of 5 cents on the sales
dollar. If prices aren't raised generally, second half earnings will
skid to 3.4% of sales "Steel" magazine reported July 6.
Frqst
quarter earnings were the lowest since 1952.
During the second half^production will be about 47 million

on routes

and

further economic expansion in the

Lakes.

already

Lakes

Steel Price Increase Termed Mandatory

deal with the requirements of the

increased

(131)

men

report that the June order bulge came from a wide

cross-section of steel

users.

But little if any came from the auto¬

makers, who have been holding their inventories down to handto-mouth

levels.

which found both Ford Motor

service said.
19 of 23 General Motors
Corp. car assembly plants, only four Chevrolet units functioning.
Entire Edsel and Mercury output, as well as four Ford Division
Continued on page 36
Idled

the statistical

during the past week were

The Commercial and Financial Chronicle

(132)

Thursday, July 10, 1958

Continued

from

bales compared wi(h 104,000 a Week earlier and
120,000 in the
comparable 1957 week. For the current season through June 24 :
exports amounted to about 5,268,080 bales compared with 7,087,000
during the comparable period last season.

page

The State oi Trade and

Industry

Trade Volume Hit

factories, were idled for the week, leaving Chrysler Corp., de¬
spite labor trouble at Plymouth, as the steadiest Big Three pro¬
ducer.

year ago, when sales were at an extremely high level. Retailers
blamed much of the year-to-year decline on unpleasant weather

the

industry's U. S. June production totaled
car completions compared with 349,474 in May and 316,April. Truck output dipped to 69,832 in June from 74,331
in May and 74,531 in
April.

337,355
503

and

Chev¬

creases

Output^

National
ders

Lumber

of 464 reporting mills in the week

9.9.%

above

ended

about the same; shipments were 6.2%
off 11%.
As against the

was

higher and

decreases of 6.7% in production; 7% in shipments and 7.2%
.!
Vm %

1956.

•

this size

were

•

'•

;

far above the 158 of

year ago.
While small casualties, those with liabilities
$5,000, dipped to 34 from 39, they remained above their 1957
Liabilities ranged above $100,000 for 26 of the week's
failing concerns as against 37 in the preceding week.

Wholesale Food Price Index Moved

Fractionally Higher
In the Latest Week

The wholesale food
price index, compiled by Dun & Bradstreet, Inc., moved fractionally higher last week to stand at $6.66

July 1,

0.3%

pared with $6.23
increase of 6.9%.

from the $6.64 of the prior
the corresponding date a

week.

year

ago

rye,

oats and lard.

< '

Little Change

Soybeans

prices

were

those of the prior week.

steady

principal takers

Denmark, Formosa

transactions

Soybeans inspected for

equalling

overseas

export

declined

amounted

this

the

latest

week's

trading picked

exports

the

were

end

Japan

the

cream, and soft drinks. Interest in dairy products,
frozen foods equalled that of a week earlier.

against 46,100,000
during the

same

reported

increase
as

that

Retail

period last

trading

was

ceding week.

There

was

store

h.if
but

were

r!CeipuSf in Chicag0 declined
over

noticeably

prices

rise

rose

prices

less.

modciate

York

fXP?wAS
y t e

rise in orders

xpectations of

stimulated

the prep

slightly during the

year

ago.

cotton

level close to those of

week

helped lamb prices climb
appreciably.
high support price on the 1958

rise

week

and

futures

COtt°n during the
York

Cotton

week ended June 24,

Exchange Service

prices

were

Bureau

105,000

1958,

New

New England

7,406,174 telephones in serv¬
of

New York

which

service

The

70%

about

were

metropolitan area

area

cities

larger

all th

includes

Rochester.

212,558

Stat

in New York

months

operating

the

For
this

firs
tota

year

.' were $233,
income befor

revenues

total

and

deductions

interest

$31,152,339

1957 calendar year were

$882,181,

129 and total income before inter
est

ex¬

deductions

$106,676,562.

E. F. Hutton Adds
(Special to The Financial Chronicle)

LOS ANGELES,

Calif.

Wil

—

L. James has been added t

liam

the staff of E. F. Hutton & Com

623 South Spring Street,

pany,

Kahn Opens Office
WASHINGTON,
mill F. Kahn is

C.—Banja

conducting

a secu

rities business from offices at 200
"

Street, N. • W.

Opens Own Office

change occurred

change

BOISE, Idaho — Reuel L. Mor
ton
is engaging
in a securitie

reported

was

business

from
offices
at
151
Eighth Street. He was. for
merly with Anderson, Randolpl

1957.

York

the level achieved the

in New York
no

same

period

year ago.

Federal

week

1%
in

that

the

Reserve

June,

greater

sales

was

Bank

1958,

the

were

Second

District

comparable

at last

was

of end-of-month stocks
;

partner Th

Morton
'

(Special tc The Financial Chronicle)

was

3% reduction

was

department

week
3%

125%

below

last

become

connecte

Compan"
'

•

With Straus, Blosser

The

the

year

James

ciated

Kenney is

with

McDowell,

year's level.

year.

has

Pacific Northwest

Wilcox Building.

the New

For

area.

Newman
?

stores

year.

gain in

PORTLAND, Oreg. Mr Harry
with

during the

New

that department store

unchanged from last

department stores

reports that

York

Straus,
40

now

asso

Blosser J

Exchange

Plac

City.

sales in

The Bank's index of

Morrison Adds to Staff

of the 1947-49 average.

At. the end of May the value of inventories

loss of

1958,

Jersey metropolitan

sales, seasonally adjusted,
.

21,

mainly attributable to
New

and

With Pacific Northwest

compared with the like period last

corresponding period in 1957.

sales

than

Co.

Uberuaga.

For the four weeks ended June 28, 1958, they were 3%

from

„

North

City the past week

City for the weekly period ended June

change

In the preceding week, June

June, 1958

estimated
at

over

volume

Preliminary estimates indicate

United States

sales

through June 28, sales remained

the

1, 1958 to June 28, 1958,

corresponding period in

York-Northeastern

crop

buying last

had
ice

lightweight

-'O.

company

compared

For the period Jan. 1, 1958 to June
28,

were

record

Cotton Exchange
advanced moderately.

New

week,

earlier.

gain

sales

The

Trading improved

the

trade

occurred

fractionally. Hog receipts
expanded, followed by
at the
beginning of the week, but at the end of

the period
reacted
■

those of

men's

owned' by

jOn March 31,; 1958 the

year.

last

and

the' latter

value,

par

American Telephone. % "

below last year.

was

28, 1958, showed

„

little change

close to that

■

According to the Federal Reserve Board's index, department

a slight rise in orders, bringing
prices.

for

dyeing and finishing plants in
appreciably during the week.

reported.

.Cocoa fractional
wholesalers

Telephone had outstanding funded
debt of $550,000,000 and 11,513,000
shares " of common; stock of $100

with $213,379,904 an
$25,872,792
in the
1957 period
Total operating revenues for th

turnover

from

prior week.

March 31, 1958 New; York

three*

showed

in coffee
futures prices

vU:'V

; As of

the

For the four weeks ended June 28,

While sugar
buying matched that of the prior week
futures
prices fell
fractionally during the week.
Increased buying and
the-lateness of the new
crop resulted in an
appreciable decline
in the
already limited rice stocks. Prices
were unchanged from
the

with it

1988.

;

except

thus

season.

re-orders

new

are

including June 30, 1960 and there¬
after at prices decreasing to the
principal amount after July 1,

fresh meat, and
,

refunding mortgage
subject to redemption
107.343% if redeemed to and

was

For the period Jan..

week,

moderately. Commercial sales of flour for
export
58,800,000 bushels in grain equivalent
as

the call

According to the Federal Reserve Board's index, department
in New York City for the
weekly period ended June
28, 1958, increased 1% over that of the like period last year. In
kbe preceding week, June 21, 1958, a drop of 7% was reported.

about

season

store sales

and Israel.

Although flour

prices

increase

28,
1958, declined 3% below the like period last year. In the preced¬
ing week, June 21, 1958, a decrease of 9% was reported. For the
four weeks ended June 21, 1958, a loss of 3% was recorded. For
the period Jan. 1, 1958 to June 28, 1958, a decrease of 3% was
reported below that of 1957.

somewhat

during the week ended June
20, amounted to 1,400,894 bushels
compared with 682,487 a week
earlier and 682,050 a
year ago.
The

substantial

Department store sales on a country-wide basis as taken from
the Federal Reserve Board's index for the week ended June

slight dip in futures prices.

with

buying expanded significantly this week, with prin¬
cipal gains in l'resh produce, frozen juice concentrates, picnic
specialties, and some dairy products.
Interest in fresh meat,
canned goods and baked goods matched that of the
prior week.
Wholesalers reported a slight rise in stocks of canned fruits and
vegetables.

year.

itye purchases slackened
resulting in

penditures for 1958 are expected
to total about $245,000,000.
'

Food

Despite reports of the largest winter
wheat crop on record
now being
harvested, commercial buying at the end of the weekwas
heavy and prices advanced
moderately. There was al slight
rise in
trading in corn and oats and prices moved
up

goods

The

panded
'

292.06

corresponding date last

household

bonds

was

ing orders at

Lower prices on lard, flour and
sugar offset increases on some
cotton and steers holding the
general commodity price
level close to that of a
week earlier. On June 30 the
daily wholesale
commodity price index, compiled by Dun &
Bradstreet, Inc.,
stood at
279.4a, compared with 279.90 in the prior week and
the

Textile wholesalers reported another moderate rise in indus¬
fabrics this week, but transactions in cotton gray goods
lagged. Trading in woolens, worsteds, and carpet wool in Boston
and Philadelphia fell below that of the
preceding week. Incom¬

grains,

ward the repayment of bank bor¬
rowings, incurred for construction
requirements.
Construction
ex¬

conditioners, fans,

trial

From Previous Week

parent company, American
Telephone & Telegraph Co., to¬

for floor

There

tion

Commodity Price Index Showed

the

but

index

Wholesale

sales

from a sched¬

sluggish. Orders for furniture equalled those of the
prior week in most major markets, and numerous openings arc
expected to encourage buying in the coming weeks. The call for
garden implements was sustained at the level of a week earlier,

represents the sum total of the price
per pound
raw foodstuffs and meats in
general use and its enief func¬
is to show the general trend of
food prices at the wholesale
level.
'V-.
of

air

bonds along

units

cost

llour, wheat,

the

There was a moderate rise during the week in orders for
lamps, lighting fixtures, television sets, laundry equipment, and
refrigerators, but volume in air conditioners, fans, and deep-freeze

com¬

for

Higher in wholesale price the past week were
corn, barley,
bellies, coffee, cocoa, eggs, potatoes and steers. Lower in
The

over-all

salers reported some, scattered
suits and Summer sportswear.

•

were

volume

company

to apply the net proceeds

shares of its
$100 par value common stock to

total of 32.

decreases

communications

uled sale of 1,300,000

down

were

the proceeds

also for

101.6599

coupon.

The

Attracted by new styles and colors, buyers
noticeably stepped
their orders for women's Fall dresses, coats, suits, and sports¬
wear this week, and volume
equalled that of the similar period
last year. Substantial gains from the previous week occurred in
purchases of lingerie, sweaters, and some accessories. Although
there was a slight pickup in sales of men's Fall
sweaters, furnishings, and suits, moderate year-to-year declines prevailed. Whole¬

under

bid

4%%

Housewives again stepped up their food purchases this week.
Best-sellers were fresh produce, cold cuts, baked goods, ice

with

coverings and slip covers, but volume fell behind last year. Re¬
tailers reported a noticeable rise in sales of linens from the prior
week, and slight increases from a year ago occurred.

pre-war

•

week, although they

was awarded to the
group at com¬
petitive sale yesterday on its bid
of 101.693% Halsey Stuart & Co.
Inc. was the second highest bidder

ended

with

chandise.

Failures involving liabilities of
$5,000 or more fell to 258 from
296 in the previous

week

Sluggish buying of metal tables and
chairs offset moderate gains in case goods and
uphplstered mer¬

moderately to 292
preceding week, reported
However, casualties remained considerably
the comparable week of last year and the

Also, the business toll exceeded by 40% the

level of 208 in 1939.

the

the sale

major appliances held
noticeably below a year ago.

Commercial and industrial failures declined
in the week ended
July 3 from 335 in the

208 in

from

and

Business Failures Decline in Week Ended
July 3

higher than the 190 in

trade

interest

accrued

proposes

Year-to-year

in new orders..

Bradstreet, Inc.

retail

weight suits match those of the prior week, but sales
appreciably from the similar 1957 week.

corresponding week in 1957, there

were

Dun &

was

orders

new

were

volume

Although the buying of women's Summer dresses and coats
close to that of last year, volume in beachwear and sportswear
was down moderately.
Reduced-price sales promotions helped pur¬
chases of men's sportswear, straw hats, some
furnishing, and light¬

same

0.6% below production.
34% of stocks. Compared with the week ended June 21 production
were

dollar

and

yield 4% to maturity. The issue

East North Central —6 to —2.

according to the
period new or¬
Unfilled orders amounted to
In the

total

102.343%

cars,

-f-2; New England, Middle Atlantic, and Pacific Coast —4 to 0;
Central, East South Central, and Mountain —5 to —1;

production,

Trade Barometer.

continued to

Automobile

passenger

West North

In the Week Ended June 28
Lumber shipments
June 28,
1958, were

new

July 2 was from 4% below to the same as a year ago, according
to spot estimates collected by Dun &
Bradstreet, Inc. Regional
estimates varied from the comparable 1957 levels by the
following
percentages: West South Central —1 to -f-3; South Atlantic —2 to

with that month.

Lumber Shipments Were 9.9% Above

The

daily-rate basis June used car buy¬
ing is running 4% above May and that new cars are running even
on

coolers,
dealers reported a slight rise
but noticeable year-to-year de¬
prevail, according to scattered reports.

outdoor furniture.

sales

rolet plus the

"Ward's" said that

beginning of the week which offset the effects of sunny,
weather at the end of the period. The most noticeable de¬
from a year ago occurred in Summer apparel, air

creases

production, off this week to 7,442 completions from

16,736 last week, reflected curtailed volume at Ford and
industry-wide July 4 observance Friday.

the

warm

Truck

Morgan Stanley & Co. heads an
underwriting group offering for
public sale today (July 10) a new
issue
of
$65,000,000 New
York
Telephone Co. refunding mort¬
gage 4Vs%
bonds,! series K due
juiy 1, 1993. The bonds are priced

a
.

said

by Unfavorable Weather

Consumer buying in the week ended July 2 fell slightly below

"Ward's"

Morgan Stanley Group
Offers N. Y. Tel. Bonds

May, 1957."

at Second

%
The

Bank's index

registered 136% of the 1947-49 base, while

on a seasonally adjusted basis, the index stood

(Special to

District

133%.

f he Financial Chronicle) 1

NEWTON; N."C:

Rouzer
staff

has

been

Morrison

Northwestern

Bank

—

Charles

added
&

Company
Building.

Volume

Number 5758

188

The Commercial and Financial

Chronicle

(133)

Needed Statistical

Improvements for the

(A)

Proposals

Economic Road Ahead.

forecasting. Claims information
to

;
In

letter

President

Eisen-

Statistics

Users'

Conference, a non-profit
group of statistical experts formed
in

1956

and

numbering about 125
outlined areas for im¬

members,

proved information and suggested
abetter .data gathering methods.
The organization has its head¬
quarters in Washington, D. C., and
,"its Chairman is Stuart A. Rice, of

.^Survey

& Research Corp., Wash¬

ington, D. C.
v'

The text of the report follows:

rely

judgments

upon

record
In

the

most

lined below

formed

the

obtained.

for

proposals

out¬

confident that

any,detailed

basic

element

the

pro¬

ventories

for

statistical

in >.such;

The

results

machinery 'items
building
maintenance,

would
not
merely
help define total investment proof jections. They would also cast a

of Labor

Orders and

revealing light on the effective
attitudes of .farmers toward'farm-

inS prospects and incomes,
„

The Consumer

harbingers both of ment and output cannot be fore-

were

postwar

the

billings to the government
in

the

quarter

production
like.

rates,

Their

been notable.

their expected

recessions

consumer

takings, sales inventory ratios, and

should be direct, reports

penditures

recommenda¬

ding

g a r

'insti¬

should

from

considerable

r e

filed

major

chqnges in business over the comConsumer outlays accumulate
ing months can hardly be exag- t°
largest single item in our
gerated. Changes in orders and in- national output. Overall employ-

the next three months.

In this report the Federal Sta¬
tistics Users' Conference does not

for

and
the cast without a reasonable surmise
Analysts have, there- as to what consumers will do.
fore, tried to anticipate inventory Surveys of consumer intentions
as
between
expenditures
made changes. In the absence of direct to spend in the coming year have
data
under existing contracts and con¬ relevant
they
have
been been available and, it is hoped,
tracts expected to be let during, forced to work in indirect fashion wil*
continue to be available,

for

and

sample

Manufacturers'

the

program,

value

ing

few

reports

large

their anticipated spend-

a year on

estia

recoveries.

from contractors

forecasting.

the

security and for nonpublic works.
These
projections should be broken down

intended

expenditures

such
add

The
significance of
reports on manufacturers' orders
and1
inventories
for
assessing

must

expenditures

tion

who

of quarterly

program

rection

make

(B)

can

inexpensive

construction contractors.

national

the

defense

Where this proves to be

business

those

government

impossible, indications of the di¬
can

have been made

such forecasts.

jections

projections in dollar terms

one

program. Yet bil¬

errors

facts

The

tute

(7;'

are

would

forecasting Federal spending. A Inventories:

make

completely

past.

affect

revenue

and

securing

monthly with the Bureau

major factor has been the lack of

econom¬

almost

program

needed

which

mates

Statistics

lion-dollar

limited number of questions
current Population Survey.1

census

hower,>the Federal

be secured

can

action

government

practical

method

questions

another

of the economy in order to improve the basis for short-

ically and promptly by adding

for

Government:

ture

Conference, composed of specialists
from business, labor and research
groups, "on a non-profit
basis, finds that our data are fine for telling what has occurred
but of little value as indicators. Specifies certain
improvements
in gathering added information from various
important seg¬
range

Federal

against recession trends frequently
support one or another expendi¬

Federal Statistics Users'

ments

Government

The

ex¬

Earlier

have

broad

ana-

consumer spending" has frustrated
attempts to make long-term fore-

Inventory Information

im¬

surveys

not *or<'short-range
forecasting are
'm*. also apparent. The "instabilty of

has

success

Such

lytic value. But their limitations

There is a need for a
prompt casts of consumer 'intentions to
mediately ahead. Such a reporting
monthly report by manufacturers spend. Changes in family income,
system
is
being introduced
to
on
their expected inventory posi- intensified.,sales efforts by busifacilitate
budgetary 'control
of
tions a month in advance. Such a ness, and the; appearance of new
defense expenditures. It should be
report
would
offer
direct
in- Products and new designs bring
extended
to
nondefense
public
formation from the key producers changes
in consumer spending
works expenditures and should be
who are actually
scheduling pro- Which cannot be foPe&een many
adapted to help provide vastly
duction, and inventory levels in months,in advance.
improved government expenditure
the weeks ahead.
:
y
There is need for a monthly
forecasts.
,

methods

used.

submit

this report in the hope that it will
lead to an early consideration of

forecasting
accurately the '<r
future

the

course.

can

most

have

been

Agriculture,;

major

business

and ';

measurement

well

spend,

such

Center

labor,

' ;

govern-),
ivment, require} • ;
-(the

i n-

guide
o
■

pe r

and

•>.

ders

Stuart

Rice

data

statistical

published by the Federal Govern?

ment and private sources. These
.statistics tell a great deal about

the past, somewhat less about the

present, and almost nothing about
•the

future.

Consequently,

ap¬

praisals of the future consist al;hiost entirely of inferences drawn
.from the known facts of past and
'

performance.

present

Economists

lysts

and

nessman

forecasts
intensive study
make

Congressman

left

Federal

Statistics

Users'

Conference believes that it is pos¬
sible
to
improve the basis of

predictions, for the future by add¬
ing information about the spend¬
ing
intentions
of
government
business, farmers and consumers
to our existing knowledge about
the past and present. This can be
done most economically by using
already existing or proposed sta¬
tistical programs to obtain needed
information directly from those
decisions to spend or save

whose

actually shape the future. Changes
in plans can be recorded by col¬

lecting this information at regu¬
lar and frequent intervals.
Obviously, statistics relating to
future intentions cannot have the
same

degree of

tistics

some

grams

facts
areas,

of
where

sta¬
past
ex¬

investment pro¬
carefully
budgeted,

and

penditure
are

statistics of

few.

intentions

should

or¬

recommendations

made

portant

pioneering studies and
seek, not to supplant them, but to
provide supplementary material
vital

short-term

for

The

Federal

forecasting.

Statistics

Users'

series

Key
from

this

that

spending

broad

industrial

additional

Vital

sector.

total

measures

would chart the flow of spending
under newly placed contracts and
would help to measure

Local: Governments:

(B)

local

1948-49

both

State

government; spending

proved, to be
the

reliable

statistics of past expenditures.

bev:of

.solid

report

must

would

value

such

issued

promptly.
The most efficient procedure

monthly

utilize : the

existing

Census Bureau

program

sales, inventories and orders.
extending and speeding that
the impact
report (or by securing telegraphic
•>' ; /
replies on orders and projected

,of such programs.
_and

flow

measure

would

should

inventories

and

1953-54

advance

regular report)

supportive element tion

could
In

cost.

the

decisive informa-

obtained

little

addition,

it
may
be
possibility of
information ori

recessions. How helpful will it be
in the near term? Given the wide

desirable to test the

of formal budget procedures
by local governments it is now
possible to" get a reliable answer
to this question.

months in advance.

use

obtaining, useful
anticipated inventories three

will

solve

problems.

any

do
information

better

national
believe
that

our

will

lead

better public and private actions.
To
this end,
we
recommend a

designed to
question: Where is

program

one

an¬
our

headed?

economy

Information Sought
This

would

program

seek

the

following information:

(1) From the Federal Govern¬
a
quarterly projection of
national security and public works
expenditures both under existing
ment:

contracts

and

contracts

direct

primarily

let
on

from contractors.

reports

(2) From State and Local Gov¬
ernments: a quarterly projection
of
anticipated
expenditures for
public works and operating ex¬
penses.

(3)

private

From

construction

contractors: reports on anticipated

expenditures

ing

starts

quarter

and

the

expected hous¬
next month or

expansion of
existing reporting program.
—

(4) From Manufacturers: state¬
ments

inventory

expected

position a month in advance—an
expansion of an existing reporting
system.
(5) From Retailers and Whole¬
salers:

monthly

of inten¬
tions in order goods from their
suppliers in the subsequent month,
by adding a single question to two
existing surveys.
(6)

survey

From Farmers:

semi-an¬

nual survey of anticipated spend¬

ing

for

major

machinery

items

(C)

-i

Retailers and Wholesalers:

The retailers

the

closest of all

The Federal Budget now before

producers to the ultimate constarting a sumer. For this reason various
survey
of the
private surveys have sought re.

the

Congress

regular

proposes

quarterly

finances of state and local govern¬
ments. This survey should be ex¬
tended

tailers
sales

opinion

While it

their

*ur\ey °? consumers' intentions
*L°
.?y durable and semiJ* aj **1
111
•?iuai^e5
abead. Monthly surveys will catch
PromPtly the impact of changes
in emPl°ymcnt or, income on consu^er. intentions. ^By concentraton
home purchase : and
malhtepance and on durable and
semi-duiable (clothing) items re^r§e 0lf"ays!.trends can
*P°ttef fo^those.atems which
1Jiean majorshifts ahead m conSSf
a
credit jje„

adding a^wu

jtems that have responded sharply

to.cycle ups and,downs

Conference does not presume that
additional statistics in themselves

future

to be hoped that

in recent
years .(such as portable mixers
or
steam irons), other sensitive
indicators could be provided,
This information could be

se-

c^red

economically
and
with
prompt availability by adding a
limited

number

questions

the Census Bureau's Current Population survey. This would link

report anticipated ex¬
penditures for (1) public works

this line

and

reports to the widely
data, for the same families,
monthly survey of retailers', on
employment,
income,
age,
intentions to order goods in the schooling, and
family status,

(2) operating expenses for the
succeeding quarter. This quarterly
forecast of state and local spend¬
ing would rest in large measure on
approved budgets and this would
provide solid totals for assessing
the impact of local government
expenditures on output in the next
quarter.
II. Business

(A) Construction: Forward
struction

estimates

are

con¬

tmued

will

inquiry

additional

con-

approach

required.

intentions
used

month

Opinion
retailer
est.

For

set

up.

query

that

the

his estimate of future

spending

consumer

should

surveys

are

hard-headed

inter-

estimate

Reports

recent actual spend-

ing for the

same items from sample
families would test the intentions

data and would

yiew

provide

a deeper
activity,

consumer

future

trends, however, it is
more important to know what the
retailer is going to do about it.

con¬

Will he put in new orders that
estimate will lead to further
production,
of short-term economic prospects.
or to
the reduction of wholesale

spicuous element in
Construction
force

any

activity,

both

a vigorous
postwar reces¬

our

and
Or

manufacturing
will

work

inventories?

down

his

own

sions,
was
a
weakening
one level of inventories
still further
throughout 1957. Generalized pro¬ whatever his
thoughts about ris¬
jections based on "the feel of the
ing sales?
situation"

quently

have

the

been

made

fre¬

and have
been conspicuously in error.
Ex¬
perience with the invaluable F. W.
over

Dodge data

The

Census

years

contract awards (as

with the OBE-SEC and McGraw-

secures

Bureau

currently

monthly reports on retail
a large sample
of re¬

sales from
tailers.
could

additional

be put to

these
retailers
in
this
sample,
reports
on
manufacturers'
querying the orders they placed in
plans for spending on plant and
the last month and those they ex¬
equipment and the National In¬
to place within the next
dustrial Conference Board work pect
on

capital

appropriations)

sug¬

There

need

report

from

tractors

for

monthly

construction

their expenditures and

one

the most useful tools in

securing

new

customers.

intentions

order

goods

the

it's

smart

place

month ahead would

con¬

building starts in the next quarter.
Given the lead time required be¬

month.
A similar survey of wholesalers'

gests the next step.

Advertising

question

select group of

Hill

picture

complete the
of business intentions to
your

spend.

advertisement in

Together the surveys of manu¬
fore actual construction, there is facturers,
wholesalers
and
re¬
tailers would provide a consistent
a basis for making reliable projec¬
tions. General building contractors
could be expected to report on (1)

comparable and for building maintenance—a their expenditures in the month
In supplement to current farm sur¬ and quarter ahead (distinguishing
other
major types of residential and
areas,
where spending is
veys.
nonresidential activity),
(2) the
unplanned or budgeted in only a
(7) From Consumers: a monthly number of residences they expect
rough and informal way, statistics
to start in the same period, and
of intentions are likely to be less survey in which a selected group
reliable.
Nevertheless, with all of
consumers
report
on
their (3) the number of units they will
have
for
sale.
For
other
con¬
their formal shortcomings, such
intentions to buy key durable and
tractors a monthly forecast of ex¬
statistics would provide a better
significant nondurable items in penditures
should
be
no
less
basis for forecasting future de¬
feasible.
velopment than present methods the quarter ahead.
about

accuracy

reporting

events.

but

appropriations

McGraw-Hill
investment
work,

with estimates based

Data Can Easily Be Improved

Re¬

report build upon these im¬

swer

Survey

the

and

ana¬

quandary.

The

and

limited

business

the
basis of
of past
performance ratios (such as in¬
ventories to sales) by measuring
investment potential, and the like.
But, in critical instances, the ma¬
terial with which they must work
leads to such widely varying con¬
clusions that the practical busi¬
do

Board capital

this

\ information is

the

intentions

the

Confer¬

The

planning.

made

of
as

number

surveys,

name

Much of this

summarized

advances

work,

current, ;
a tions .>

each

consumer

ence

qr'mation;!,.
;possible 'to

National, Industrial

the

suitable

accomplish the Objective.

There

economy.

steps

case

;:of the Ameri- ',

picture of the flow of production
and the change in inventories at
all levels of business from manu¬
facturer to consumer.
HI.

Farmers'

planting and
been

nomic

THE COMMERCIAL AND

Agriculture
of

forecasts
crop

our

eco¬

useful

and

simple addition to that report sys¬
tem

would

query

FINANCIAL

CHRONICLE

totals have long

basic feature

reporting.

their

farmers

twice

25 Park Place, New York 7

The Commercial and Financial Chronicle

Thursday. July 10, 1958

(134)

* INDICATES

Now

Securities

150,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
June 24 filed

Underwriter—Reynolds & Co. Inc.,

selling stockholders.

Ga.
stock (par $1)
subscription by common stockholders

Acme United Life Insurance Co., Atlanta,

June 30 filed 315,000
for

be offered

shares of

common

at the rate of three hew shares for each two

shares held

Price—$6.25 per share to share¬
holders, and $7.50 for any unsubscribed shares.
Pro¬
ceeds—For working capital and general corporate pur¬
poses. Underwriter—None.
of record June 30,

1058.

t Allied Laboratories, Inc.

stock

inventories of aging

Underwriter—Fulton Reid & Co., Inc., Cleve¬
Offering—Expected this week.

whiskey.

Campana

Sales

price

selling stockholders.

American-Caribbean

each consisting of $1,000 of
debentures and 20 common shares. Price — $1,000 per
unit. Proceeds—To acquire all of the assets of Orlando
Fuel Oil Co., Inc., Florida Service Corp., Billups Petro¬
leum Co. of Georgia, Inc., Billups Petroleum Co. of N. C.,
offered

sale

for

Fla.

Space Corp., Savannah, Ga.
•

(7/16)

Boeing Airplane Co.

Oil Co.

bentures due

stock (par 200).

C., Inc., Florida Friend
Oil Co., Inc., OfficeUnderwriter — The Johnson, ,, Lane,

Inc, Billups Petroleum Co. of S.
Oil Co., Inc., and Your Friend

June

(N. Y.)

units,

filed

$30,597,600 convertible subordinated de¬
July 1, 1980, and $60,000,000 sinking fund

debentures, due Aug. 1, 1978. The convertible subordi¬
nated debentures are to be offered to the company's

Proceeds — To
discharge current liabilities and to drill ten wells. Un¬

stockholders for subscription at the rate of $100

derwriters—To be named by

pal amount of debentures for every 23

amendment.

the offering date.

stock held on

American Durox Corp., Englewood, Colo.

and

May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of new

expire

rights

bentures

July

29.

The sinking fund

$115,000,000 of bank loans outstand¬
1958, with the balance, together with
retained earnings, to be used for work in process inven¬
tories

Street, Englewood, Colo.

writers—Harriman Ripley & Co., Inc.,

American Mutual Investment Co., Inc.

ing

at June

16,

receivables.

and

Price

Magazine,
Highland Drive, Silver Spring, Md., is President.

1201

Anderson Electric Corp.
Dec. 23

(letter of notification) 14,700 shares of class B
stock (par $1). Price—$12 per share. Proceeds
—To go to selling stockholders.
Office — 700 N. 44tb
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and Odess, Martin & Herzberg, Inc., Birmingham, Ala.
common

Anita Cobre If. S. A., Inc., Phoenix, Ariz.

Sept 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub■idiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.
Arden Farms Co., Los Angeles, Calif.

1968)'; together with
stock

common

172,162 shares of the company's
(par $1) to be offered for subscription by

holders of outstanding
new

common

stock at the rate of

share for each five shares, held

of this

registration statement.

one

the effective date

Price—To be supplied by

amendment. Proceeds—To pay off an equivalent portion
of the company's current bank loans
which, at May 15,
1958, amounted to $8,450,000.

Associated Grocers, Inc., Seattle, Wash.

June 30 filed 4,788 shares of common
capital stock (par
$50) and $1,500,000 of 5% subordinated registered deben¬
ture-

notes, second series, and $606,000

bearer

debentures.

association.

Proceeds

—

offered

For

working

coupon

members

capital.

the

Under¬

writer—None.
Bankers

Fidelity Life Insurance Co.

fk. 28 filed 258,740 shares of common stock (par $1),
which 125,000 shares are to be offered
publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To
public, $6 per share. Proceeds—For

expansion

and other

lanta, Ga

Underwriter—None.

corporate

purposes.

Office

—

At¬

i J?3?!1?!? Management Corp. (7/28)
Feb. 10
filed

400,000 shares of common stock (par 25
Price—$1 per share.
Proceeds—To reduce out¬

cents.)

standing indebtedness and for
working capital.
Houston, Texas. Underwriter —

McDonald, Holman &

Co., Inc., New York.

^ Bankers Southern,
April 14 filed
par

($100

purposes.

ville,

I
i

Ky.

Barton

q£*

iQfid
1964.

Office—

Inc.

8,934 shares of common stock. Price—At
share). Proceeds—For general corporate
Underwriter
Bankers
Bond Co., Louis¬
'

per

Distilling Co., Chicago, III.

$300,000 of notes

are

July 1,

direct obligations of the

company secured by

r°n
aT]u
f °f

whiskey warehouse receipts for not
5I5,'000 ori£inal proof gallons of Kentucky
Pfaclnced
the company not earlier
lu
$1,000,000 of notes are direct oblii-n6 company secured by whiskey warehouse

eceipts for not less
lons

;

Stockholders

Budget Finance will vote on proposal Aug. 5, 1958.
Underwriter
Shearson, Hammill & Co., New York.
—

Offering—Expected late in September.'

^ Burroughs Corp.

(7/17)
of sinking fund debentures, due

July 1, 1983 and 550,000 shares of common stock (par
$5). The latter issue will be offered for subscription by
holders of the company's outstanding stock at the rate
of one additional share for each 11 shares held July 16,
1958; rights to expire on July 30, 1958. Price — To be
supplied by amendment. Proceeds—For the retirement
of $18,074,000 of installment notes and: payment of bank
loans. Underwriter—Lehman Brothers, New York.

Calidyne Co., Inc., Winchester, Mass.
June 4 filed 230,875 shares of common stock (par $1).
These shares are issuable upon conversion of an ag¬

Kentucky

than 1,250,000 original proof gal¬
bourbon whiskey produced by the

<x>mpany not later than Jan.
1, 1958. Price—To be supphed by amendment. Proceeds—For the
repayment of
Short-term loans from banks and

others; and the bal¬

REVISED

ISSUE

the American

Stock Exchange. Proceeds—To
Underwriter—None.
V

it Consolidated Enterprises,

Inc.
$299,000 of 2%

subordin¬

ated debenture bonds to be due upon demand five years
from date of issuance or in 10 years without demand.
Price—At par. Proceeds—To purchase mortgages. Office
917 Fifteenth St., N. W., Washington 5, D. G.
Under-"

writer—None/

//^//y>,-•"yy:;/yy"

Cooperative Grange League Federation
Exchange,.. Inc. 1
June 20 filed $400,000 of 4% subordinated debentures,
10,000 shares of 4% cumulative preferred stock (par
$100) and 200,000 shares of common stock (par $5).
Price—At par.
Proceeds—To be added to working cap¬
ital. Office—Ithaca, N. Y. Underwriter—None.
"
//
)
Research Fund,

Counselors

•

Feb.

Inc., St. Louis, Mo.,
of capital stock, (par one
Proceeds—For investment.
Research
Bales Corp., St.

fifed

100,000 shares
Price—At market.

cent).
Underwriter

—

Robert

Louis

Counselors

II.

een

Cuban-Venezuelan

Oil

President.

Voting Trusts,

Havana, Cuba.
31 filed 767,838 units of voting trust certificates,
each certificate representing the ownership of one share
of common
stock
(par one-half cent) in each of 24
Cuban companies.
Price — To be supplied by amend¬
ment.
Proceedsh—For capital expenditures, exploration
costs and other corporate purposes. Underwriter—None.

■

March

Daybreak Uranium, Inc., Opportunity, Wash.
29 filed 1,156,774 shares of common stoek'-(par 10
cents), of which 630,000 shares are to be offered for ac¬
count of company and: 526,774 shares lor -selling stock¬
holders. Price—At market
Proceeds—For exploration
and drilling costs and other corporate purposes. Under¬
writer—Herrin Co., Seattle, Wash.
j
v
•
Jan.

•
Dayton Aviation Radio & Equipment Corp. (7/14)'
May 28 filed 500,000 shares of common stock (par 50
cents). Price—$1 per share.- Proceeds—For gene*I cor¬
porate purposes. Underwriter — McDonald, Holftran &
Co., New York.
"
^'
.v/yy,
.

■

DeKalb-Ogle Telephone Co.
May 29 (letter of' notification) 22,024 shares of common
stock to be offered to stockholders of record June 16,
1958 on the basis of one share for each eight shares
held.

now

Rights expire July

($10 per share).

16, 1958.

Proceeds—For

Price—At par

construction program.
Underwriter—

Office—112 West Elm St., Sycamore, III.
None.

.y'/y'

.y/.

y; y-:

/■: V

•

•'

gregate principal amount of $923,500 of 10-year 3%. con¬
vertible subordinated income notes Of the Calidyne Co.,
limited partnership,

which notes were assumed by the
Dec. 31, 1957. The notes are convertible at
any time after July I, 1958; until the maturity or priorredemption of the notes at a conversion priee of $4 per
share. Underwriter—None. • "• y\'1y* y>: 'vyV
company

Campbell Chibougamau Mines Ltd.
March 10 filed 606,667 shares of capital' stock (par $1)
of which 506,667 were issued in connection with the ac¬
quisition of all the assets of Yorcan Exploration Ltd
(latter proposes to distribute said shares ratably to its
stockholders of record Dec. 16, 1957).
The remaining
100,000 shares are to be sold for the account of the Estate
of A. M. Ceilings Henderson on the American and To¬
ronto Stock Exchanges* Price—At market.
Proceeds—
To selling stockholders.
Office—Toronto, Canada. Un¬
derwriter—None.

Stock

Acceptance Corp., Denver, Colo.
May 18 filed 1,600,000 shares of Common Steele (par $1).
Price—$2 per share. Proceeds—To engage, through one
or more subsidiary companies to be formed or: acquired,
in the business of writing life insurance and annuity
policies. Underwriter—DAC Securities Corp., Denver/
Colo. \

■'/syV'l'

Potomac

Electric

Power

Co.

Proceeds—

Derson Mines Ltd.

June 5 filed 350,000 shares of common stock. JPrice—$1

share. Proceeds—For new equipment, repayment of
loan, acquisition of properties under Option, and other
corporate purposes. Office—Toronto, Canada, and Em¬
porium, Pa. Underwriter—None.
per

Diketan Laboratories,

Inc. ""
v
(letter of notification) 43,336 shares of common
to be offered to stockholders on the basis
share for each 10 shares held until the close of

June 10

stock (par $1)
of

one

business

ir Capital Reserve Corp., Washington, D. C.
July 1 filed (by amendment) an additional $l,000,000\in
Potomac Plans for the Systematic Accumulation of Com¬
mon

Denver

June

Price—$1.10

per

20, 1958. Offer expires on July 11,1958,'
share.. Proceeds—For the general fund

company.
Office—5837 W. Adams Blvd., Culver
City, Calif. Underwriter—Lloyd Arnold & Co., Beverly
Hills, Calif.
"
y •. C
;

of the

For investment.

Wholesale

District

^ Carrtone Laboratories, Inc., Metairie
(New Orleans), La..
July 2 filed 600,000 shares of common stock (par 10
cents). Price—$5 per share. Proceeds—For expansion,
working capital and other corporate purposes. Under¬

Drug Corporation of

Washington
\
1
1
(letter of notification) 500 shares of -7% cumu¬
lative preferred stock. Price—At par ($100 per share).
Proceeds—For working capital.
Office — 52 "O" St.,

June 30

N. W.,

Washington, D. C.

Underwriter—None.

writer—None.

Dixon Chemical & Research,
Central

Inc.
165,625 shares of common stock (par $1) to
offered for subscription by common stockholders at

Cooperatives, Inc.
May 26 (letter of notification) $250,000 promissory notes
consisting of $100,000 principal amount of 4% 6-year
notes and $150,000 of 5% 9-year notes.
Price—At par
(in multiples of $100). Proceeds—To retire notes and
for working capital.
Office—1901 Winter St., Superior,

supplied by amendment.
Proceeds—For
expansion and general corporate purposes.
Office —
Clifton. N. J
Underwriter—P W
Brooks & Co., Inc..

Wis.

New York.

Underwriter—None.

Dec. 24 filed
be

the

rate

Price—To

—

J^jr?^300'000 of
secured notes, due
00 of 6% secured notes, due
The
TV,

Under¬

[

June 4 filed $3,000,000 of 5% subordinated
debentures,
second series, due July 1, 1980 (convertible until July 1,

and Signature Loan Co., Inc.

June 27 filed $25,000,000

Sheldon

None.

—

(flat).

and Blyth & Co.,

Budget Finance Plan, Los Angeles, Calif.
132,000 shares of 6% serial preferred stock
($10 par). Price—To be supplied by amendment. Pro¬
ceeds—To be used in conjunction with proposed merger

Underwriter

At par.

Inc., both of New York.

of company

—

June 10 filed

capital stock. Price—$10.20
share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,

Dec. 17 filed 490,000 shares of

per

to the public.

ITEMS

July 2 (letter of notification)

de¬

pay

plant and establishment of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—I. A. I. Securities Corp., 3385 S. Bannock

ir American Investment Trust
July 3 filed $5,000,000 of plans for the accumulation of
shares of Axe-Houghton Stock Fund, Inc. Proceeds—For
innvestment.
Sponsor—Axe-Houghton Stock Fund, Inc.

shares of capital

Record date is July 15

will be offered for sale directly

Proceeds—To

princi¬

Consolidated Cuban Petroleum Corp.
July 1 filed 419,000 outstanding shares of common stock
(par 20 cents).
Price—Related to the current market

(7/21-22)
May 29 filed $2,500,000 of 7% debentures due July 1,
1993, and 650,000 shares of common stock (par $1) to be

Co.

Feb. 28 filed 500,000 shares of common
Price—To be supplied by amendment.

•

land, Ohio.

Jacksonville,

stock to be offered
exchange for all the outstanding shares of common

June 6 filed 65,000 shares of common
in

be available for financing

and will

Billups Eastern Petroleum Co.

New York.
i

will be added to the general funds of the company

ance

(7/16)

J*' ABC Vending Corp.

Registration

ADDITIONS

SINCE

one

new

For working

Price

Santa Fe,

selling stockholders.
Co., Inc., New York.

Commerce Oil Refining Corp.
Dec.

filed

$25,000,000

of first

mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
Oct. 1, 1968 and 3,000.000 share?
! common stoek to be
offered in units as follows: $l400u of bonds and 48 shares
of stock and $100 of debentures —d nine shares of stock
Price—To

be supplied-by- amendment.

construct refinery.
York.

Proceeds — To
Underwriter—Lehman Brothers, New

Offering—Indefinite.

each

four

held.

Offering—Indefinitely postponed. Statement
Other financing may be arranged:

may

capital. Office — 937 Acequia Madre Rd.,
N. M. Underwriter—Watson & Co., Santa Fe,

for

withdrawn.

•+C Cinemark II Productions, Inc.
June 30 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—

N. M.

(R. R.)

Donnelley & Sons Co.

(7/17)

June 27 filed

—

172,710 shares of common stock (par $5).
To be supplied by amendment.
Proceeds — To

Paso

Underwriter—Harriman Ripley &

Electric Co.

(7/22)

June 25 filed $6,500,000

of first mortgage bonds due 1988,
1, 1978* Proceeds
4%% first mort¬
gage bonds due 1987, in the amount of $6,500,000 in¬
cluding the payment of duplicate interest of approxi¬
mately $25,700 and a redemption premium of $351,000,
to pay off outstanding bank loans, the proceeds of which
were used for construction purposes*
Underwriter—To

and $3,000,000 of debentures due July
—To refund all of the outstanding

Volume

Number 5758

18ft

The Commercial and Financial Chronicle

competitive bidding. Probable bidders:

be determined by

Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co., White,
Weld & Co. and Shields & Co. (jointly); Equitable Se¬

Underwriter—To

90 Broad

St, 19th Floor, New York City.

Ethodont Laboratories,
Feb.

par

expense

filed

Forest

300,000 shares of common .stock.

Price—

notification) 1,500,000 shares of common
Price—15 cents per share. Pro¬
ceeds—For working capital.
Office—E. 12707 Valleyway, Opportunity, Spokane, Wash. Underwriter—Pennaluna & Co.,, Spokane, Wash.
June 2 (letter of

(par five cents).

Corp.

York, N. Y. Underwriter—Dumont Securities Corp., New
York, N. Y.
Fidelity Bankers Life Insurance Corp.
March 7 filed 450,000 snares ol common stock (par $1,
to be offered for subscription by holders of outstanding

basis; thereafter the balance remain¬
ing, if any, will be offered to the public. Price—$5 per
share to stockholders; and to the public at a price to be
determined.
Proceeds — For expansion and -»ther cor¬
rata

a pro

Office—Richmond, Va.

porate purposes.
None.

...

First

April

months

Backers

$1,000,000

filed

12%

issued

indebtedness

of principal amount.

payment

mortgages

for

and

work

Pro¬

improvements

per

working

stock

(par

Proceeds—For exploration
Office — Portland
Ore

share.
capital.

capital.

Underwriter—Hayden.

per

Underwriter—Buckley Enterprises, Inc.

share.

Proceeds

—

For general corporate

Glassheat

Corp.
(letter of notification) 150,000 shares of class A
stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—For
general corporate purposes.
Office—1 E.
35th Street, New York 16, N. Y.
Underwriter—James
Anthony Securities Corp., 37 Wall St., New York 5, N. Y.
Feb. 12

common

Port & Terminal Co.

Pierce

Co., Inc., of Miami Beach, Fla.,

•

Grand Union Co.

June 12 filed

10,450,000 of subordinated debentures, due
1978, being offered to common shareholders in the ratio
of $100

debentures for each 23 shares of stock held1

July 1.

best

Rights to expire

convertible into

July 21.

stock until

common

Debentures to be

July 15, 1968.

Pro¬

ceeds—To be used in part to retire all
outstanding shortterm bank borrowings, including those incurred in con¬

General Aniline & Film

Corp., New York
Jan. 14, 1957 filed 426,988 shares of common A stock (no
par) and 1,537,500 shares of common B stock (par $i)
Proceeds—To the Attorney General of the United States

nection with

the

recent

acquisitions of the 41 "Empire
Stores," the aggregate purchase
price being approximately. $8,000,000, to replenish cash
expended in these acquisitions, and to pay the unpaid
balance of the purchase price. The remainder will be
Stores" and 7 "Mohican

Underwriter—To be determined by competitive bidding
bidders: Blyth & Co., Inc., and iThe First Bos¬

Probable
ton

Corp.
(jointly);
Kuhn,
Loeb
&
Co.; Lehman
Brothers, and Glore, Forgan & Co. (jointly). Bids—Had

added to the company's general funds and will be avail¬
able for working capital and installation of fixtures for

been scheduled to be received up to 3:45 p.m.

new

(EDT) od
May 13 at Room 654, 101 Indiana Ave., N. W., Washing
ton 25, D. C., but bidding has been postponed.

100

held

Morgan Stanley & Co. and
Co., both of New York.
-

Guardian

Devices, Inje., Princeton, N. J,
March 31 (letter of notification) 40,000 shares of com¬
mon
stock (par $1) to be offered for subscription by
stockholders at the rate of approximately 18.5 shares
each

Underwriter

General

for

stores.

W. E. Hutton &

—

'•••:

Insurance

•

)JU. »».;•;

Corp..

.»/*■

J.:.

•*

-«•<»+

Baltimore, Md.

..^

Aug. 16, 1957, filed 300,000 shares of common stock, of
which 200,000 shares are to be publicly bffkred and the
remaining 100,000 shares reserved for issuance upon ex¬
ercise of warrants which

about

April 15; unsubscribed
shares to public. Price—$3.50 per share. Proceeds—For
expansion, equipment and working capital. Underwriter

warrant

—None.

are

to be

sold, at 25

cents

per

writer—None.

and/or

organizers,

directors.

incorporators,

management,*

Price—$10

per share. Proceeds—For
working capital and general corporate purposes. Under¬

other liens upon the

Fluorspar Corp. of America
Dec. 26 filed 470,000 shares of common

Price—$3

nine
mul¬

Underwriter—None.

improved properties.

cents).

purchase of notes and other

ceeds—To be used solely for
homes and secured by

payable

notes,

in units of $100 or

issue

Price—100%

thereof.

tiples

Inc., Clifton, N. J.

Co.,

after date

Underwriter—

working

Price—$6

May 23 filed 2,138,500 shares of common stock (par $1).
Price—To
be supplied
by amendment.
Proceeds—To
pay some $174,000 of outstanding indebtedness and to
complete phase one of the port development plan, at a
cost of $1,425,248, and
the balance will be added to
working capital. Office—Fort Pierce, Fla. Underwriter
&

and

Co., New York.

purposes.

efforts basis.

May 21 (letter of notification) 300,000 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—To make loans, etc.
Office — 80 Wall St., New

Georgia Casualty Sk Surety Co., Atlanta, Qa.
May 6 filed 450,000 shares of common stock' (par $1).

to be amended.

—Atwill

stock

filed

of company's products, working capital, addi¬
inventory and accounts receivable, for research
and development and for other general corporate pur¬
poses. Office—Brooklyn, N. Y. Underwriters—Statement

Fort

Commercial

Stone

150,UUO shares of capital stock (par 10
Price—$2.50 per share. Proceeds—For sales pro¬

cents).

expansion

tional

($5 per share). Proceeds—To cover operating
during the development period of the corpora¬

Federal

Sol Gold¬

motion

Berkeley, Calif.

Evergreen Gas & Oil Co.
stock

by amendment.

Laboratories, Inc.

March 26

Underwriter—None.

tion.

be named

berg is President.
.

curities Corpi and R. W. Pressprich & Co. (jointly). Bids
be received up to 11 a.m. (EI>T) on July 22 at

—To

(135)

•

Transistor Corp.
(7/21-25)
June 27 filed 100,000 shares of common stock (par 25c),
of which 26,112 shares are for account of company and
General

73,888 shares for selling stockholders. Price—To be
lated

the

American

then

Stock

current

market

Exchange.

for

the

Proceeds—To

stock

the

company

Co., Inc. (7/14)
(letter of notification) 199,900 shares of

com¬

stock (par five cents). Price—4$1.50 per share. Pro¬
ceeds—For development of oil and gas properties. Office
24181 Effingham Blvd., Euclid 17 Ohio. Underwriter

mon

re¬

Haratine Gas & Oil

June

for

—Herbert Perry &

Co., Inc., New York, N. Y.

it Haydock

Fund, Inc.
July 7 filed (by amendment) an additional 75,000 shares
of capital stock (no par). Price—At market. Proceeds—

NEW ISSUE CALENDAR
(July 22

(Thursday)

July 10

EDT)

II. a.m.

El Paso Electric

Debentures

Southern Natural Gas Co
(Bids

(Bids

$30,000,000

& Oil Co..

Haratine Gas

(Herbert

Southern
>'.•

Bonds

Ariz.

Common

Co.,

(Dillon,

Read

(Bids

Bonds

Co.—

Common

(Offering to stockholders—underwritten by Blair &
and Scherck, Richter Co.) 389,577 shares

Co., Inc.
'

Co.,

Inc.)

Co.

Inc.)

Common

plied

Bonds

(Kidder, Peabody & Co., Inc.; Blyth & Co., Inc.; White, Weld &

Common
Inc.)

(Reynolds & Co.

150,000 shares

Blyth & Co., Inc.) $90,597,600

(Harriman. Ripley & Co., Inc. and

Equip. Tru»» t us.

Norfolk & Western Ry
Bids

Pacific

mon

Bankers

Hogle

(Bids

$300,000,000

August 12
Montana

Power
(Bids

$25,000,000

Common

Burroughs Corp.

Common

(R. R.) Donnelley & Sons Co.__*
(Harriman Ripley

Tampa

Artists

Co., Inc.)

172,710 shares

a.m.

EDT) $25,000,000

Co.) 300,000 shares

(Bids

(Rassco

Co.

and

Mortimer

Burnside & Co.. Inc.)

$487,500

July 21

Johnson.

General Transistor

Lane.

Montrose

Chemical

(Van

$2,500,000

Common

Corp.

(Hayden, Stone & Co.)

100,000 shares

Co.)

$1,000,000

(Monday)

invited)

277,320 shares

common

Bonds

$50,000,000

(Tuesday)

September 30
Southwestern

Bell

Debtns.

Debentures

(Bids to be invited) $110,000,000

(Tuesday)

Cincinnati & Suburban Bell Telephone Co.—Debs.
$25,000,000

unspecified

amount

common

1956.

■

filed

150,000

Price—To he

ceeds—For
-

(Bids to be received)

times for each

cents).

(Tuesday)
Co

and

debentures

Feb.

$40,000 O00

Telephone

the basis of 1.51

stock held and approximately 1.5 shares

Industro Transistor

Telegraph Co

'nntPd >

Oil Corp., and 80%

common

subscribe with

ment.

October 21

Common

Alstyne,. Noel

Gas Corp.

it Idaho Power Co. (7/22)
July 3 filed 350,000 shares of common stock (par 10).
Price—To be supplied by amendment.
Proceeds—For
partial payment of short-term bank loans heretofore
made for interim financing of construction of new oper¬
ating facilities. Underwriter—To be named by amend¬

Debentures

August 26
'Bids

Com. & Debs.

Space Corp.)

stock of Houston Texas Gas &

convertible debentures, series of

Bonds

$60,000,000

Israel Corp.)

New England Telephone &

(Monday)

Billups Eastern Petroleum Co
(The

(Wednesday)
EDT)

other

Refrigerator Co., St. Louis, Mo.
of common stock (par $5) to
be offered in exchange for the issued and outstanding
shares of common stock (par $5) of Duro-Consolidated,
Inc., and for the shares of Duro common which may be
issued upon conversion of Duro's $200,000 subordinated

$45,000,000

Southern California Edison Co
(Bids

Plohn

a.m.

—Common

Jetronic Industries Inc
(Charles

August

(Friday)

July 18

August 20

with

Hussman

Debentures

Rassco Financial Corp

Common

Corp

(F. Eberstadt &

Gas

Public Service Electric & Gas

Bonds

Electric
'Bids

United

Consolidated Natural

Price—To be sup¬

Together

June 27 filed 31,584 shares

(Wednesday)

(Bids to be invited)

(Lehman Brothers) 550,000 shares

—

(to be supplied by amendment) will be issued in
connection with the acquisition of outstanding common
stock of Jacksonville Gas Corp.

Bonds

August 13

Proceeds

$20,000,000

Debentures

Burroughs Corp.
(Lehman Brothers)

(Tuesday)

EDT >

•

class A share held. (The
respect to 133,850 outstanding
class A shares has been waived.) Furthermore, $511,500

Bonds

Co..
noon

•

of class A stock for each 381,273

$2,100,000

(Monday)

EDT) $20,000,000

noon

amendment.

Jacksonville

right to

(Bids

■

•

standing common,

Utah Power & Light Co._

(Thursday)

July 17

share of

Equip. Trust Ctfs.

CDT)

noon

it Houston Corp.
July 3 filed 818,333 shares of common stock and 575,869
shares of class A stock to be offered to holders of out¬

$400,000

60,000 shares

and Johnston, Lemon & Co.)

Corp.

Inc.)

(Tuesday)

August 11

Preferred

Gas Light

Co.,

Lehman Brothers and Allen & Co., all of New
York, and Scharff & Jones, Inc., of New Orleans, La. •'
Common

August 5

Debentures

& Co.)

Stanley

(Morgan

Washington

Holman

<•.

Inc.,

$25,000,000

(Monday)

Minneapolis & St. Louis Ry

$700,000

Co.)

Steel Corp

States

(First Boston

Preferred

Inc.)

stock, and the bal¬
ance will be added to working capital and used for gen¬
eral corporate purposes.
Underwriters — Blyth & Co.,

Debentures

Co.

Management

Common

Corp.„

Imperial Corp
(J.

United

Peabody

(McDonald,

(Blyth fx Co., Inc.; 980,000 shares

San Diego

(Thursday)

July 28

$2,340,000

invited)

Lighting

(Kidder,

-Debentures

Boeing Airplane Co

July 24

Container Corp. of America

funds, will be used to purchase the notes and common
stock of Coastal Transmission Corp., the notes and com¬

Co., and Laurence M. Marks & Co.) $15,000,000

ABC Vending Corp

debentures and five shares of stock.

r (Kidder, Peabody & Co.; Blyth & Co., Inc.; White, Weld &
Co., and Laurence M. Marks & Co.) 200,000 shares

(Wednesday)

July 16

Corp.
x
"
/
July 3 filed $36,188,000 of subordinated, debentures due
Aug. 1, 1968, and 1,809,400 shares of common stock (par
$1) to be offered in units ol $100 principal amount of

$9,000,000

Washington Water Power Co

Houston

Bonds
CDST)

a.m.

Underwriter—None.

—None.

;

Preferred

$15,000,000

Washington Water Power Co
,

Textron, Inc.

Debentures

Stuart &

Inc.) $281,250

(Bids noon EDT) $22,000,000

and Halsey,
$35,000,000

Price—$10

Manufacturing Co.
May 26 (letter of notification) 300,000 shares of common
stock.
Price—At par
($1 per share).
Proceeds—For
supplies, advertising, furniture and working capital. Of¬
fice—710 South Fourth St., Las Vegas, Nev. Underwriter

(Wednesday)

Inc.,

stock.

Houston Chemical

350,000 shares

Otter Tail Power Co

—Common

Railway

•

$6,500,000

Natural Gas Pipeline Co. of America

Debentures

& Co.,

EDT)

Natural Gas Pipeline Co. of America

Inc.) $2,000,000

Salem-Brosius, Inc.
(Blair

Power

(Dillon, Read &

Salem-Brosius, Inc.
(Blair & Co.,

a.m.

Inc.

part for the ex¬
and operation of
mines and in payment of indebtedness. Office—Tucson,

$3,000,000

July 23

$299,850

(Tuesday)

July 15

EDT)

(Underwriter to be named by amendment)

Common

Inc

& Co., Inc.)

Perry

Idaho

Corp.—Com.

$500,000

Holman & Co.)

a.m.

(Bids

(Monday)

Dayton Aviation Radio & Equipment
(McDonald,

Debentures

investment.

Hoagland & Dodge Drilling Co.,
June 12 filed 27,000 shares of capital
per share.
Proceeds—To be used in
ploration of mines and development

(Tuesday)

Co.

El Paso Electric

July

For

Corp.

(N. Y.)

common

the market

stock

(par 10
price. Pro¬

working capital and to enlarge research and
Underwriter — S D Fuller &

levelopment department

Co., New York.

Offering—Being held in abeyance.

Insured Accounts

Fund,

Inc.,

Boston, Mass.,

May 12 filed 5,000 shares of common stock.

Continued

Price—$5,000
on

page

The Commercial and Financial

(136)

4-5

Continued from page

tion Agent

$1).

Mzxv

(7 18)

May 27 filed 15,000 shares of common stock. Price—
$100 per share. Proceeds—For working capital and gen¬
eral corporate purposes. Underwriter—None.
Montana Power Co.

•

Proceeds—To refund

July 1 filed $20,000,000 of first mortgage bonds due 1988.
Proceeds
Together with other funds, to be used to

$15,500,000 in bank loans and to carry on the
company's construction program through 1959: Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; LehttTan Bros.;

$10,000,000 of first mortgage bonds due
4 %%

first

mortgage

bonds

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.: The First Boston Corp.: Blyth & Co., Inc.; Lehman
Brothers, Merrill Lynch. Pierce, Fenner & Smith and
Reinholdt & Gardner (Jointly): Eastman Dillon, Union
Securities & Co.: Stone & Webster Securities Corp. Bids
--Had been expected to be received up to 11 a.m. (EDT)
on July 8. but offering has been oostponed indefinitely.
due 1982.

Merrill

Pierce, Fenner & Smith, and Stone &
Webster Securities Corp. (jointly); White, Weld & Co.;
Eastman Dillon, Union Securities & Co.; Kidder Peabody & Co., Smith, Barney & Co. and Blyth & Co., Inc.
( jointly). Bids — Expected to be received up to noon
(EDT) on Aug. 12.
;

Lynch.

Power Co.

Montana

Lancaster Chemical Corp.

July

May 26 (letter of notification) 122,115 shares of common
istock (par SI) to be offered for subscription by common
stockholders at the rate of one new share for each two
shares held, with additional subscription privileges sub-

of Montana.

Price—To

supplied by amendment.

Motel Co.

Nov.

(par 10 cents). These securities are to be offered
in 5,000 units, each consisting of $100 of debentures and
SO common shares. Price—$100 per unit. Proceeds—To¬

(par $1).
Proceeds — To

Underwriter—Van Alstyne, Noel &

selling stockholders.
Co., New York.

©tock

Roanoke, Va.

18,1957 (letter of notification) 60,000 shares of com¬
share. Proceeds—

purchase of land, construction and working capital
Underwriter—Southeastern Securities Corp., New. York
Municipal Investment Trust Fund, Inc. (N. Y.
May 9, 1957 filed 5,000 units of undivided interests in
Municipal Investment Trust Fund, Series A. Price—At
market. Proceeds—For investment. Sponsor—Ira Haupt
&

Corp.

March 28 filed 1,000,000 shares of capital stock (par $1).

Co., New York.

Longren Aircraft Co., Inc.

National Educators Finance Corp.
June 4

Proceeds—To

go to selling stockholders.
Office—24751
Crenshaw Blvd., Torrance, Calif.
Underwriter—Daniel
Beeves & Co., Beverly Hills, Calif.

it Louisville Gas & Electric Co. (Ky.)
July 7 filed not more than 100,000 shares of
atock

(no

par)

offered

employees under the
company's Employee Common Stock Purchase Plan.

Magna Investment & Development Corp.
May 26 filed 56,000 shares of common stock and $500,000
©f 6% convertible debentures. Price—For
debentures, at
g>ar (in $1,000 units): and for common stock, $4.50 per
©hare. Proceeds—For contractual obligations, for work¬
ing capital, and other general corporate purposes. Busi¬
ness
To engage primarily in the development and
©peration of various properties, including shopping cen¬
ters. Office—Salt Lake City, Utah. Underwriter—J. A.
Hogie & Co., Salt Lake City, Utah.
Statement to be
—

©mended
•

Marsh

Foodliners, Inc., Yorktown, Ind.
(letter of notification) 18,181 shares of

June

©tock

(no par), of which 10.000 shares

common

being offered
to stockholders and 8,181 shares to
employees; rights
expire on July 14. Price — $16.50 per share. Proceeds
—For working capital and other
corporate purposes,
Underwriter—Blyth & Co., Inc.. New York and Chicago;
Martin

are

Co.,

Baltimore, Md.
June 11 filed $25,000,000 of sinking fund
debentures, due
July 1, 1978. Proceeds — Working capital and general
corporate purposes.
ment.

Price—To

supplied by

amend¬

Underwriter—Smith, Barney & Co.,

N. Y. Offer¬
expected on July 2. has been postponed.
remain in registration.

ing, which
Issue to

was

Mayfair Markets
March

cumulative

(letter

of notification) 5,000 shares of 6%
(par $50) and 5,000, shares
(par $1) to be offered in units of one

preferred stock

of common stock

share of preferred and

one

share of

common

stock.

Price

—$60 per unit. Proceeds—For
working capital. Office—
Bandini Blvd., Los
Angeles, Calif. Underwriter—

4383

None.

it McKean-Bradford Petroleum Corp.
June
(letter of notification) 100.000 shares

(letter of notification) 50,000 shares of common
Price—At par

share). Proceeds—/
implement and carry
out the projected plan of development and operation.
Office—1406 Pearl St., Boulder, Colo.
UnderwriterWestern Securities Co., Boulder, Colo.
stock.

train

and

common

stock (par 20 cents).
Price—S3 per share. Proceeds—
To purchase Freeman Cotton
Explorations and 100 acres
and their equipment and for
working capital. Office—
601 G. Daniel Baldwin
Bldg., Erie, Pa. Underwriter—
None

June

filed

(50 cents

procure

National Gypsum
common

Corp.,

Portland, Ore.

May 27 filed $3,000,000 of 4% 2.5-vear sinking fund de¬

used for the 1957 construction program,

were

and the balance if any,

■

will be applied to the company's
Underwriter—A. C. Allyn &

persons

Co.
shares

298,000

per

tion

and

stock

(par $1).

completion

shares of com¬

23,200

Price—$5

per

share.

Pro¬

plant

plans; land; construc¬
Office—2502 N.; Calvert
Underwriter—Burnett & Co.,

operating expenses.

St.,

Baltimore
Sparks, Md.

18,

Md.

Oil

Inc., Salt Lake City, Utah
April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders.
of record March 24, 1958 at the rate of iVi new shares
for each share then held. Employees may purchase 50,000 shares of unsubscribed stock. Price—To

stocklMders,

$1.75 per share; and to public, $2 per share.. Proceeds—
For mining, development and exploration costs, and for

working capital

and other corporate

writers—Harrison S. Brothers &
both of Salt Lake

purposes.
Under¬
Co., and Whitney & Co.,

Otter Tail

Co.

Power

(7/23)

$9,000,000 of first mortgage bonds due 1988.
Proceeds—For the purpose
of retiring existing bank
loans and to supply cash for further construction expen-

common

stock

right, at its election, to accept less than 90% but in
event less than 81%

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

Co., Inc.; Glore, Forgan & Co.; and Blyttt &
Bids—To be received until 10 a.m. (CDST) on;

July 23 at 11 South La Salle St., Chicago, 111.
Pacific

Lighting Corp. (7/16)
shares of common stock (no par).'
supplied by amendment. Proceeds—Will*6
be used to finance, in part, the cost of the construction''1
and expansion program of the company's subsidiaries,
through loans on open accounts to the subsidiaries and
by purchasing new issues of common stock of the sub¬
June 26 filed 980,000

Price—To

San

Francisco.

Paradox

of the American Encaustic

com¬

-L;.. -J:/ /.<>•

Production

Corp., Salt Lake City, Utah
April 18 filed 767,818 shares of common stock (par $1),
of which

100,000 shares are to be offered by the company
exchange for oil and gas properties and 3,000 for serv¬
ices; the remaining 664,818 shares are to be offered to
the public. Price—To be supplied by amendment. Pro¬
in

ceeds—To selling stockholders. • Underwriter—Market
Securities, Inc., Salt Lake City, Utah. Statement effec¬
tive June 5.
Peckman Plan

May

Fund, Inc., Pasadena, Calif.
common stock (par $1).

19 filed 20,000 shares of

Proceeds—For

market.

investment.

Under¬

writer—Investors Investments Corp., Pasadena, Calif.
Pecos Valley Land Co., Carlsbad, Ni Mex.
13 filed 2,000,000 shares of common stock

March

(par

cents), of which 300,000 shares are to be offered farsale by the company and 1,700,000 shares by the present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000 shares, to be used to pay 6% mortgage
notes and interest and to pay back tax claims, and inter¬
est due

i< Natural Gas Pipeline Co. of America (7/23-24)
July 3 filed $35,000,000 of debentures due July 1, 1978.
Price—To
be
supplied by amendment.
Proceeds—To
repay bank loans. Underwriters—Dillon, Read & Co. Inc.,
and Halsey, Stuart & Co. Inc., both of New York.

& Co., Dallas, Texas.

A-Natural Gas Pipeline Co. of America (7/23-24)
July 3 filed 150,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds
To repay bank loans and for working capital.
—

Underwriter—Dillon. Read & Co. Inc., New York.

one

new

share for

each

five

held: rights to expire on July 11. American Telephone &
Telegraph Co.owns about 2,547,411 shares (about 69.29%)
of the outstanding stock. Price—At par ($100 per share).
Proceeds—To

advances from parent and for
Underwriter—None.

repay

porate purposes.

cor¬

Nichols, Inc., Exeter, N. H.
May 13 (letter of notification) 11,111 shares of common
stock
(no par). Price—$27 per share.
Proceeds—For
expansion and working capital. Underwriter—None.

North

Carolina

chased

(letter

by Rock-Ola Mfg. Corp. Warrants expire 20 days

from date of issuance.

Telephone Co.

July 1 filed 41,823 shares of the company's outstanding
common stock
(par $5). Price—$42.25 per share. Pro¬
ceeds—To selling stockholders.

units

shares.

capital
states

($1
share).
Proceeds—To pay off obligations and for
telephone plant construction* Underwriter—None.

consisting
Price

and

—

for

one

class

$75 per unit.

development

and

Proceeds
of

four

class

For working
offices in the

—

district

where

the company is currently licensed to do
Office—Jackson, Tenn.
Underwriter—None.
B. Smith, Jr., is President and Board Chairman.

business.
R.

Pioneer Finance
June 17
stock

Co.

(letter of notification) 32,500 shares of

common

Price—$8 per share. Proceeds—To go to
selling stockholders. Office—1400 National Bank Bldg.,
(par $1).

Detroit 26,

Mich.
Detroit, Mich.

Underwriter—Watling, Lerchen & Co.,

Policy Advancing Corp.
mon

share for each six shares held. Price—At par

Underwriter—None.

Peoples Protective Life Insurance, Co.
March 27 filed 310,000 shares of common stock (par
$1),
consisting of 62.000 shares of class A-voting stock and
'248,000 shares of class B-non-voting stock to be offered

common

per

Proceeds

Office—800 N. Kedzie Ave., Chi¬
Underwriter—None.

51, 111.

June 19 (letter of notification) 207,143 shares of common
stock to be offered to common stockholders at the ratio
one

Price—$4.25 per share.

—For working capital.

Peoples Life Insurance Co/

• New
England Telephone & Telegraph Co.
May 16 filed 735,245 shares of common stock being of¬
fered for subscription by stockholders of record June

basis of

Underwriter—Wiles

Weighing & Vending Machine Corp.
of notification) a maximum of 25,000
shares of common stock (par $1) to be offered to minor¬
ity stockholders on the basis of one new share for each
four shares held. Any unsubscribed shares will be pur¬

Nedow Oil Tool Co.

the

the note to Mr. Harroun.

it Peerless

June

cago

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Tex. Underwriter—T. J. Campbell Investment Co., Inc.,
Houston, Tex.l

ditures.

mon.

•

City, Utah.

Oil & Mineral Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
equipment, -and a reserve for future operations. Business
—To acquire and operate mining claims and oil and gas
properties. Underwriter—Universal Securities Co., En¬
terprise Building, Tulsa, Okla.

Price—At

of the
outstanding shares of common stock of American En¬
caustic Tiling Co. Inc., in the ratio of one share of
National Gypsum common for each 2-4/10ths of Amer¬
ican Encaustic common.
National Gypsum shall have
the

Enterprises Inc.
(letter of notification)

class B

ceeds—For

offered in exchange for all but not less than 90%

O. T. C.

Metropolitan Hotel

shares held as

sidiaries. Underwriter—Blyth & Co., Inc., New York and *

Estes Park, Colo.
May 16 (letter of notification) 2,916.000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share.
Proceeds—For mining expenses. Underwriter
—Birkenmayer & Co., Denver, Colo.
National Beryl & Mining Corp.,

June 18 (letter of notification) 34,000 shares of common
ftock (par $.1). Price—From 80 cents to $1.40 per share.

from which

,Co., Inc.

For

Inc., Little Rock, Ark.

(par S3)
stockholders

stock

common

share for each

new

one

Co.

common

Kalrnan &

of Roanoke, Inc.,

stock (par 40 cents). Price—$5 per

mon

gether with the $175,000 mortgage loan of the American
Brake Shoe Co.. will be used to meet expenditures in
acquiring latter company's South San Francisco foundry
and for working capital. Underwriter—Sam Watson Co.,

June 20 filed

(7/21-25)
July 2 filed 277,320 shares of common stock

Laughlin Alloy Steel Co., Inc., Las Vegas, Nev.
13 filed,,$500,000 of 6% unsecured convertible de¬

Price—$5 per share. Proceeds—To acquire stock control
of "young, aggressive and expanding life and other in•urance companies and related companies and then to
operate such companies as subsidiaries." UnderwriterFirst Maine Corp., Portland, Me.

ic Montrose Chemical Co.

bentures due June 30, 1968 and 150.000 shares of common

Securities

Price—To be related to the current market

the New York Stock Exchange. Proceeds—To¬
gether with other funds, to carry on the company's con¬
struction program through 1959. Underwriter—None.

Underwriter—None.

Insurance

stock

price

June

Life

filed 100.000 shares of common stock (no par).
will be offered only to bona fide residents

The

Sect to allotment. Record date: June 9, 1958; rights expire
July 11. 1958. Price — S1.50 per share. Proceeds—
To 'repay outstanding debts to purchase real property
end for "working capital.
Office — Broad and 13th St.,
Carlstadt, N. J.

Service

of July 8,
1958; rights expire July 24, 1958.
Price—
$16.6212 per share. Proceeds—To be applied to the pay¬
ment of $900,000 of short term bank notes, the funds

(8/12)

repay

1983.

filed

the rate of

mon

N. J.

Princeton,

Co.

Gas

Public

59,532

Thursday, July 10, 1958

being offered for subscription by
at

March

Inc.,

—

Laclede

filed

Co., Chicago, 111.

Kidder, Peabody & Co.; The First Bos¬
Corp.; Kuhn, Loeb & Co.; Blyth & Co., Inc.

Modern Community Developers,

delphia. Pa.1 Underwriter — Charles Plohn & Co., and
Mortimer B. Burnside & Co., Inc., both of New York,
on a best efforts basis.
•

1958 construction program.

ton

130,000 shares of common stock (par 10
cents). Price—$3.75 per share. Proceeds—For research
Cmd development and for working capital. Office—Phila¬

June

Northwestern

Probable bidders:

filed

•

June

Underwriter—To be determined by competitive bidding.

frice—$5 per share. Proceeds—For working capital and
other corporate purposes. Office—Denver, Colo. Under¬
writer—Columbine Securities Corp., Denver, Colo.
Inc.

Public Service Co.

it Missouri

Life Insurance Co-

International Opportunity

Industries,

1983.

July 7 filed 30,000 shares of cumulative preferred stock
(par $100). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans incurred for construction in
1958, and the balance will be added to general funds.

Ben H. Hazen is President.

June 2 tiled 5.000.000 shares ot common stock (par

—

Ore.

(Savings and Loan Insurance Corp., in savings and loan
associations throughout the country. Underwriter—None.

ietronic

Price—At par. Proceeds—
working capital. Subscrip¬
The Hockenbury System, Inc., Portland,
' "v'
<

July

For construction program and

per share. Proceeds—For investment. Business—To in¬
vest primarily in share accounts insured by the Federal

•

due

bentures

3fJ

Chrqnicle

March

each

stock

(letter of notification) 30,250 shares of com¬
(par $5) to be offered for subscription by

stockholders

debenture

the rate of

held; unsubscribed
holders

and

one

others.

new

Price—$8

share for
offered
per

share.

Volume

Number 5758

188

Proceeds—For

ThA Commercial

capital.

working

Office—27

ana

TvnOhCXtx.

Chenango

provide

Underwriter—None.

St., Binghamton, N. Y.

■

Ltd.

Saskatchewan

Alberta

and

residents of the United States "only in the State of North
Price — $2.50 per share. Proceeds — For con¬

Dakota."

Office

Saskatchewan,
Canada. Underwriter—Allied Securities Ltd., Saskatoon,
purpose.

customers

ordinary

course

and

—

Natural

Gas

Co.

(7/10)

general funds and will be available for its construction
outstanding loans under a re¬
volving credit agreement providing for a maximum
of $25,000,000 at any one time outstanding. Underwriter
—To be determined by competitive bidding.
Probable
bidders; Halsey, Stuart & Co. Inc.; The First BostoD

Feb. 28 filed 210,000 shares of common stock (par $1.50)

struction

the

Saskatoon,

Canada.
Private

Enterprise, Inc., Wichita, Kansas
May 5 filed 125,000 shares of common stock. Price—$10
per share.
Proceeds — To be used to organize, or re¬
organize and then operate companies in foreign nations,
principally, but not exclusively, in the Far East, Near

Corp.; Blyth & Co., Inc.; and Kidder, Peabody & Co
jointly). Bids—To be received until 11 a.m. (EDT) on
July 10, in Room 1130, 90 Broad St., New York, N. Y.
it Springfield Steel Corp.
July 3 (letter of notification) 120,000 shares of common
stock (par 10 cents).
Price—$2.50 per share. Proceeds
—For working capital.
Office—Reservoir Rd. & South¬

Standard

Oil Co.

two

of, class A

and

one

class

stock. £

unit. Proceeds—For expenses incidental
to drilling for oil.
Office—llV/2 E. St. Peter St., New

Iberia, La.

per

Underwriter

Orleans, La..

—

T. J. Feibleman & Co., New

'■/'■;^7i'7'7/:

v-'1

Rapid-American Corp., New York
June 19 filed $1,504,000 of 7%

sinking fund debentures,
15, 1967, together with 105,000 shares of com¬
(par $1). Proceeds—The debentures are al¬
ready outstanding having been issued in payment of
47,000 shares of common stock of Butler Brothers which
were acquired by Rapid American from 19 persons, in¬
cluding three directors of the corporation. The deben¬
tures are being registered against the possibility that
they may be sold by present owners.
Of the 105,000
due Nov.

mon

stock

common

ployees,
chase
•

are issuable under the company's
Option Plan for officers and key em¬

Stock

and

under the Employees'

Financial

Corp.

Pur¬

$500 and $1,000.

basis.
Richwel!

Petroleum

Ltd., Alberta, Canada

June 26 filed 1,998,716 shares of common stock (par $1).
Of this stock, 1,174,716 shares are to be sold on behalf of
the company and

824,000 shares for the account of cer¬
selling stockholders. The company proposes to offer
the 1,174,716 shares for subscription by its shareholders
tain

at the rate of

one

new

share for each three shares held,

price—To be supplied by amendment. Proceeds—To pay
off demand note, to pay other indebtedness, and the bal¬
ance

will

any

writer—Pacific

added

Securities Ltd.,

working capital.

Under¬
Vancouver, Canada.

Riddle Airlines, Inc., Miami, Fla.
May 15 filed 750,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For working capital. Underwriter—James H. Price &
Co., Inc., of Coral Gables, Fla., for 250,000 shares; balance
on

"best efforts" basis.

Robosonic
June

filed

Strategic Minerals Corp. of America, Dallas, Tex
$2,000,000 of first lien mortgage 6% bondi
and 975,000 shares of common stock (par 10 cents). Prict
—For bonds, 95% of principal amount; and for stock $2
per share. Proceeds—To erect and operate one or mor«
chemical processing plants using the Bruce - William#
Process to beneficiate manganese ores.
UnderwriterSouthwest Shares, Inc., Austin, Texas.

Price—$3

per

contract basis

Industries

Corp.,

unit.
and

automatic telephone

answering instru¬
ment; the enlargement of the research and development
facilities of the company; patent and patent applications;

public relations, and for working capital. Underwriter—

units

Memphis, Tbnn.

common

stock

to be

of¬

principal amount of
Price — $1,200 per
payment of short-term bank loan
working capital. Underwriter—None.
consisting

$800

and 26 shares of stock.

(letter of notification) 24,475 shares of capital
stock (par $5) to he offered to stockholders on the basis
of one share for each share held on June 10, 1958. Price
10

—$12.25 per share.

determined

construction

Underwriter—To
bidding. Probable bid¬

program.

competitive

Halsey, Stuart & Co. Inc.; Stone. & Webster Securi¬
ties Corp.; Kuhn, Loeb & Co.; Merrill Lynch, Pierce,
Fenner & Smith; Goldman, Sachs & Co. Bids — To be
received at 90 Broad St., New York, up to 11 a.m. (EDT)
ders:

July 17, 1958.

Washington, D. C
of common stock. Price
—$25 per share. Proceeds—For investment. Underwriter
—Equitable Securities Corp., Nashville, Tenn. OfferingExempt Bond Fund, Inc.,
1957 filed 40,000 shares

June 20,

Held

pending

passing of

necessary

legislation by

Congress.
•

Tennessee Gas

filed

-ij:

.] /'•

i/.
(letter of notification) 27,272 shares of 70-cent»

March 25

;

preferred stock (par $5) and 27,'2.72 shares
stock (par 10 cents) to be offefed in units
share to each class of stock. Price—$11 per unit.

cumulative
of
of

common
one

Proceeds —For

Office—111

working capital.

E. Mala

Securities

St., Morristown, Tenn. Underwriter—Valley
Corp., Morristown, Tenn.
■»

"Tip Top OiT& Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which#200,000 shares are to be publicly offered. Price—$5 per
share.

Proceeds—To drill two

new

Underwriter
Co., Inc., Salt Lake City, Utah.

•

purposes.

wells and for general*-

—

Andersen-Randolph#

Townsend

International

Growth

Fund Inc.,
'' 7'v'"-'; ' " 77 v7'
May 14 filed 1,000,000 shares of capital stock (par one*
cent). Price—Initially at $5 per share (part at privates
sale).
Proceeds—For investment.
Office—Short Hills,
N. J. Underwriter
FIF Management Corp.,' Denver,
—

;

Colo.
.

■

e:.'»

Uranium

Trans-America

one

Mining Corp.

shares of common stock (par
mill). Price—25 cents per share. Proceeds—For lancl

acquisition, exploratory work, working capital, reserves^
Underwriter—None. Al¬

and other corporate purposes.

fred
•

of Waterloo. Ia.,

Owens

is President.

Oil Co.,

Trans-Cuba

Havana, Cuba
March 28 filed 6,000,000 shares of common stock (par SO
cents) being offered for subscription by holders of out¬
standing shares of capital stock and holders of bearert
shares, in the ratio of one additional share for each share#
so held or represented by bearer shares of record May
28, 1958; rights to expire on Aug. 1, 1958.
Price—50c
per share.
Proceeds—For general corporate purpose^,
including exploration and drilling expenses and capital
expenditures. Underwriter—None.
Trans-Eastern Petroleum Inc.
Feb.

stock

(letter of notification) 7,500 shares of common,

(par $1) to be offered pro-rata to stockholders on#
one new share for 10 shares owned.
Price

the basis of

—$4 per share.
Office—203

Proceeds—For drilling for oil and ga«*
Street, Coudersport,, Pa. Under¬
7 7
,T'' -"7; V

Main

writer—None.

it Truax-Traer Coal Co.

July 3 filed $600,000 of Participations in the company's.
Employees Stock Purchase Incentive Plan, together with
30,000 shares of common stock (par $1) which may bo

acquired pursuant to said plan.
Twentieth

;

Investors, Inc., Kansas Cityr

Century

June 20 filed 2 000,000

Price—At

Transmission Co.

1,084,054 shares of common stock (par

$5)

being offered in exchange for common stock of Middle
States Petroleum Corp. at the rate of 45 shares of Ten¬
nessee Gas common for each 100 shares of Middle States

it is a condition of the exchange offer that it
accepted by holders of not less than two-thirds (1,-

shares of common stock (par $1).
investment. Under-

Proceeds—For

market.

writer—Stowers & Co., Kansas

Twentieth
.

Tampa Electric Co. (7/17)
June 13 filed $25,000,000 first mortgage bonds due 1988.
be

Timeplan Finance Corp.

Proceeds—For working capital. Un¬

derwriter—None.

Proceeds—For

Underwriter-?

Ga.

;

Mo.

Systron Corp., Concord, Calif.
June

June

Rocky Mountain Quarter Racing Association
Oct. 31, 1957 (letter of notification)
300,000 shares of
G$mmon stock. Price—At par ($1 per share). Proceeds
—To
repay outstanding indebtedness. Office—Littleton,
Colo.
Underwriter—R. B. Ford Co.,
Windover Road,

shares of

it Sunburst Petroleum Corp.
June 30 (letter of notification) 379,005 shares of com¬
mon stock (par 10 cents) to be exchanged for all proper¬
ties and rights of Hardrock Mining Syndicate. Price—50
cents per share. Proceeds—For mining expenses. Office
•—40 West 1st St., Reno, Nev. Underwriter—None.

None.
,

12.766

Proceeds—For

Tax

500,000 shares of common stock, class B.
share.
Proceeds—To manufacture on a
an

Sugarbush Valley Corp., Warren, Vt.
25 filed $392,800 of 20-year 6% subordinated de¬

June

and

Atlanta,

S. W.,

St.,

Nov. 6, 1957 filed 3,000,000

March 31 filed

bentures

Whitehall

543

None.

■

Packaging Corp., New York
June 4 filed 225,385 shares of the company's common
stock (par $1), such shares are to be issued to Johnston
Foil Manufacturing Co., a New Jersey corporation, under
an agreement pursuant to which Standard acquired subtantially all of the assets of Johnston.

National

being offered to the President of the company). Price—»
$60 per unit. Proceeds—For working capital. Office—

Standard

debentures

series A sinking
in denominations

Price—At par. Proceeds—For work¬
ing capital and general corporate purposes. Underwriter
—Rassco Israel Corp., New York, on a "best efforts"
-

main in registratiohH

fered

(8/20)

June 26 filed $1,000,000 of 15-year 6%
fund debentures due 1973, to be offered
of

Stock

Underwriter—None.

Plan.

Rassco

30,000

(500 of the shares are

owned

(Calif.)

June 4 filed $150^000,000 of

shares, 75,000

Restricted

debenture!?
unit for

S50 principal amount of

stock and

offered to stockholders on the basis of one

to be

corporate

R.R., Springfield, Va. Underwriter—None.

ern

sinking fund debentures due
July 1, 1983.: Price—To be supplied by amendment. Pro¬
ceeds—To refinance a bank obligation of $50,000,000 due
East and Africa. Underwriter—None.
this year to provide additional capital for the company's
Rand Drilling Co., Inc.
overall program. Underwriters—Blyth & Co., Inc., and
Dean Witter & Co., both of San Francisco, Calif., and
May 12 (letter of notification) 100,000 shares of class A
common stock (par 50 cents) and 50,000 shares of 'class 7/ New York, N. Y., Offering—Postponed from June 25 by
B common stock (par 50 cents) to be offered in units of in the company "due to market conditions."
Issue to rePrice—$4.50

share of

program and reduction of

to be offered for sale to residents of Canada in the Prov¬

Manitoba,

lending

$30,000,000 of sinking fund debentures, due
July 1, 1978. Proceeds—To be added to the company's

Price—$1,000
per unit.
Proceeds — For equipment and working cap¬
ital. Office—1550 Rockville Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., Washington, D. C.

for

June 12 filed

500 shares of stock and $500 of debentures.

inces

funds

contracts

each two shares of stock

Southern

(letter of notification) $57,500 of 6% subordi¬

nated convertible debentures and 57,500 shares of class A
common stock (par one cent)
to be offered in units of

Prairie Fibreboard

sales

business.

Potomac Plastic Co,

March 31

additional

purchasing

(137)

Chronicle

Mo.

City, Mo.

Century Investors
W.'V '
- '

•.

-7'

Plan, Kansas City,
—

of plans for the accumulation:
of shares of Twentieth Century Investors, Inc. Price—At
market.
Proceeds — For investment.
Underwriter —
June 20

filed $10,000,000

Stowers

& Co., Kansas

City, Mo.

(7/17)
June 27 filed 200,000 shares of common stock (par $1)
for the corporation's account, and 100,000 shares for cer-.
tain selling stockholders.
Price — To be supplied by
amendment. Proceeds—To provide funds to finance an
United Artists Corp.

expanded program of motion picture production and to»
the television, recording anrl

broaden U.A.'s activities in

music

fields.

publishing

Underwriter—F. Eberstadt &

Co., New York.
United

Employees

Insurance

Co.

April 16 filed 2,000,000 shares of common stock (par $5).
Price — $10 per share. Proceeds — For acquisition o*

operating properties, real and/or personal, including
office furniture, fixtures, equipment and office space, by
lease or purchase.
Office — Wilmington, Del. Under¬
writer—None.
Myrl L. McKee of Portland, Ore., ia
President.

•

common;
be

(7/16)
25 filed $300,000,000 sinking fund debentures duo
Proceeds—To restore in part working capital ex¬

United States Steel Corp.

606,005 shares) of the outstanding 2,409,007 Middle States
Offer expires July 24. Dealer-Manager—Dillon,

June

it St. Regis Paper Co., New York

oommon.

Juty

Read

pended

8 filed

118,746 shares of common stock (par $5)
to be offered in exchange for outstanding shares of capi¬
tal stock of Growers
the basis of

one

Growers Container.
•

Container

Corp., Salinas, Calif., on

St. Regis share for 18

shares of stock of

Underwriter—None.

(7/15)
$2,000,000 of convertible subordinated de¬
bentures, due July 1, 1973, and 112,500 shares of common
stock (par $2.50). Price—To be supplied by amendment.
Salem-Brosius, Inc., Pittsburgh, Pa.

June 10 filed

Proceeds—To be

used in connection with the proposed
acquisition of Alloy Manufacturing Co., Inc., and to re¬
tire indebtedness and working capital.
Underwriter—
Blair & Co., Inc., New York.

San

Diego Imperial Corp., San

Co., Inc., New York.

Calgary Co., Abilene, Texas
April 30 filed 2,000,000 shares of capital stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada only.
Texas

•

Textron

June

Inc.

(7/15)

filed 389,577

shares of common stock (par 50

cents), to be offered for subscription by holders of out¬
standing common of record on July 14, 1958, at the rate
of one new share for each 10 shares then held. Rights
expire July 30, 1958.
ment.

Diego, Calif.

Price—To be supplied by amend¬

Proceeds—To reduce short-term bank borrowings

incurred in financing the

(7/16)

acquisition by Textron on June

June 2 filed 70,000 shares of 5%% cumulative convert¬
ible preferred stock.
Price — At par ($10 per share)
Proceeds—To retire $550,000 of promissory notes. Under¬

28, 1958, of the assets, properties and business of The
Waterbury Farrel Foundry & Machine Co. Underwriter
—Blair & Co., Inc., New York, and Scherck, Richter

writer—J. A. Hogle & Co., Salt Lake

Co., St. Louis, Mo.

City, Utah.

• Seaboard Finance Co., Los Angeles, Calif.
July 3 filed 50,000 shares of common stock (par $1) to

be_ offered for subscription and purchase by employees.

Price—To

supplied

by amendment.

Proceeds

—

Thomas

Paint Products Co.

May 26 (letter of notification) 1,250 shares of common
(par $10) and $37,500 of 6% serial subordinated
debentures series 1958, to be offered in units of one
stock

1983.

in corporation's expansion and modernization
and for corporate purposes, including future#
outlays for property additions or replacements. PriceTo be supplied by amendment. Underwriter—Morgan
Stanley & Co., New York.
program

Corp.
shares of eommon stock (par on*

United States Sulphur
Oct. 8 filed 1,500,000

cent). Price—$1 per share. Proceeds—For plant rental,
etc.; to retire corporate notes; for core drilling; fo*
working capital; and for other exploration and develop¬
ment work
Office — Houston
Texas. Underwriter—*
None.
Statement effective June 23.
United States Telemail Service, Inc.
17 filed 375,000 shares of common stock

(par $1)*
purchase equipment?
and supplies and for working capital and other corporate
purposes.
Office—Salt Lake City, Utah. UnderwriterFeb.

Price—$4 per share. Proceeds—To

Amos Treat & Co.,

Inc., of New York.

Universal Oil Recovery Corp.,

Chicago, III.

37,500 shares of class A common stock. Price
—$4 per share. Proceeds—For exploration and develop¬
ment of properties, and the balance for other corporate
June 4 filed

purposes.

Underwriter—None.

The Commercial and Financial Chronicle

(138)

South- Africa, with particuLar,

Continued from page 41

in mining

) ttmftan Corp* ef Amartea,
Oro.
April 30».I957filed-1",250,000 shares of common stock(par
18 cents), frice—To be supplied by amendment (ex¬
pected to be $1 per share). Proceeds—For exploration
purposes.
Underwriter—To be named by amendment.
Chatham Albert Griswold of Portland, Ore., is Pres¬
ident;
♦

City, Utah.

in gold bullion.

£ extent

Inc.,, New York.
Associates

Jan. 23 it

reported

was

government

Underwriters

—

Salomon Bros. & Hutzler and Lehmax

Utah Oil Co. of New York, Inc.

Utah Power & Light Co.
filed

.•*

vvv

(8/11)

$20,000,000

of the company and its subsidiaries
amounting to approximately $43,000,000 for the period
1958-1960. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
struction program

Inc.; First Boston Corp. and Blyth & Co. Inc. (jointly);

White, Weld & Co. and Stone & Webster Securities Corp.
(jointly);*Salomon Brothers & Hutzler; Kidder, Peabody
& Co.; Eastman Dillon, Union Securities & Co., and
ISmith, Barney & Co. (jointly); Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids—Expected to be re¬
ceived in Room 2033, 2 Rector Street, New Yofk, N. Y.,
up to noon (EDT) on Aug. 11, 1958.

Laboratories

C.G.S.
June 23 it

reported the company plans the issuance

was

Underwriter—Hayden,

Conn.

Stone

Co.,

California

Power Co.

Electric

available

for

the

current

construction

ston, Lemon & Co., Washington, D. C.

/Washington Water Power Co.

(7/23)
$15,000,000 of first mortgage bonds due
1988, and 200,000 shares of common stock (no par). Price
~TS& be supplied by amendment. Proceeds—To be ap¬
plied In part to the repayment of $15,500,000 of outstand¬
ing notes,-the proceeds of which were used for property

June

26> filed

additions and improvements.
ceeds will

used

meet

The balance of the pro¬
construction

requirements.

Underwriters—Kidder, Peabody & Co., Blyth & Co., Inc.,
White, Weld & Co. and Laurence M. Marks & Co., all of

7*. Western Carolina Telephone Co., Weaverville,

mon

filed

89,391 shares of

common

of¬

stock to be

for subscription by holders of outstanding com¬
stock at the rate of one new share for each three

shares held.
ment.

The record date is to be supplied by amend¬

Price—At

($5

share). Proceeds—To be
applied to the payment of $700,000 of short-term bank
loans incurred in carrying forward the company's con¬
struction and conversion program. Underwriter—None.
par

Western Pacific

Co.; Hemphill, Noyes & Co.; Smith, Barney & Co.;Merrill Lynch. Pierce, Fenner & Smith. /

and

★ Gulf Interstate Co.
June

Interstate

per

Mining Co., Inc.

was

& Co.; Merrill Lynch, Pierce, Fenner. & Smith; Carl M.
Loeb, Rhoades & Co., and Bear Stearns & Co. (jointly).,t
Central

Hadley Corp.

The shareholders
held

of the

company

Z-y - :
special meeting-

June 25, approved an amendment to the certi¬
of incorporation authorizing an issue of 200,000

ficate

convertible

cumulative

preferred

stock

(par $10). Convertible into common stock at the rate
of $2.86 per share. Proceeds—To retire outstanding notes
of

subsidiary in the amount of $768,000. '.<■
Louisiana

Central

March 28 it

Electric

Co., Inc.
company's financing

announced that the

was

program

privately.

it Cincinnati & Suburban Bell Telephone
Co.

July 7 it
ized

(10/21)

the

sale

not

exceeding $25,000,000 debentures
having a maturity of not more than 35 years. Proceeds
—To repay advances received from American Telephone
& Telegraph Co. which owns 29% of the outstanding
common
stock of the company.
Underwriter — To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Glore,
Forgan & Co. and Eastman Dillon, Union Securities &
Co. (jointly). Bids—Expected to be received on Oct. 21.
Columbus & Southern Ohio Electric Co.
Dec. 9 it

was

reported company plans to issue and sell

and

privately. In event of competitive bidding for bonds or '
debentures, bidders may include: Halsey, Stuart & Co. ;
Inc.; The First Boston Corp. and White, Weld & Co.
(jointly); Stone & Webster Securities Corp.; Blyth &
Co., Inc.; Drexel & Co. and Dean Witter & Co* (jointly). '
The First Boston Corp. and White, Weld & Co. (jointly) /
underwrote last common stock financing. There is no ;
preferred stock presently outstanding. Private sale
30,000 shares ($3,000,000) of preferred is planned.

derwriters—To
Co.

determined

Probable bidders:

competitive bidding.

Halsey, Stuart & Co.; White, Weld &

and

Paine, Webber, Jackson & Curtis (jointly);
Morgan Stanley & Co. and First Boston Corp. (jointly).
Bids—To be received

construction.

new

gan

one

additional
excess

new

share for each four shares held and

share
the

offered

for

the

number of

holders

balance

such

shares divisible

outstanding 5%

one

holdings

by four; also
subordinated

debentures of record March 24 at rate of five shares for
each $1,000 of debentures then held.
Price — $60 per
share.
Proceeds—For working capital.
Underwriter—

None.

1958. Indications are
securities may be involved.

Wilier Color Television
System, Inc.
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which
10,000 are to be offered to stock¬

holders at $2 per share and the
remaining 62,035 shares
are to be
publicly offered at $3 each. Proceeds — For
general corporate purposes. Office—151 Adell Avenue,
—

Edwin

Jefferson,

Acme

Steel

Co.

March 21 it

was announced that the
company plans addi¬
tional financing this year, in the form of
common stock,

preferred stock, or a combination of the
two, including
hank loans.
Proceeds—For expansion
program, work¬
ing capital and inventories. Underwriters—Blyth & Co..
Inc. and Merrill Lynch, Pierce, Fenner &
Smith.

Harriman

Ripley & Co. Inc. (jointly). An offering of
$35,156,700 of 4%% convertible debentures, offered to
stockholders, was underwritten in October, 1957, by Mor¬
gan Stanley & Co.

company

Kentucky Utilities Co.
.
H'
16 company stated.it will sell bonds and/or com-,
stock in the last quarter of 1958.
Underwriters—•
Blyth. & Co., Inc. and J. J. B. Hilliard & Son.
»
Master Fund,

Inc., Fairfield, Calif.
this newly organized invest¬

announced

was

company

California

plans to offer to bona fide residents of

10,000 shares of capital stock (par $1). Price
share, less an underwriting discount of 8l/2%.>

Midland Enterprises,

was

reported

that

the

plans

early

1983.

Underwriter—Kidder, Peabody &

Co.

Inc.,

New

28, company announced it plans to issue on or
before Dec. 31, 1958 $3,200,000 of first preferred mort-~
gage bonds. May be placed privately.
Proceeds — To
repay bank loans and for working capital.

Equitable Gas Co.
April 7 it was reported that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,000
of additional funds. Proceeds—Together with $7,000,000
from private sale of 4J/2% bonds, to repay short-term

fqr construction program.

Underwriters

—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith; and White,
Weld & Co., all of New York.
Gas

March

Service Co.
24

was

notes

loans

and

Underwriter

—

probable
Merrill

bidders

for

and

construction

program.

determined

may

by competitive bidding,
Halsey, Stuart & Co. Inc.;

Lynch,

Weld & Co.

Pierce, Fenner & Smith, and White,
(jointly); Blyth & Co., Inc.; The First Boston

Corp.; Lehman Brothers.
General

Public

stockholders

Corp.
a plan authorizing the
offering of common stock

approved
an

Gas Transmission Co.

was

announced

this subsidiary of,
applied to the Fed¬
permission to issue first
that

Tennessee Gas Transmission Co. has

eral

Power

Commission

for

unsecured notes and common stock.'
line system to cost about Slil,^;
000,000.
Underwriters — Stone & Webster Securities
Corp. and White Weld & Co., both of New York.
bonds,

Proceeds—To build pipe

it Minneapolis & St. Louis Ry.

(8/5)

Bids will be received by the company up to noon

(CDT).
on Aug. 5 for the purchase from it of $2,100,000 of series
B equipment trust certificates due annually on Aug. 26
from 1959 to 1973.
Probable bidders: Halsey, Stuart &
Co. Inc.;

Salomon Bros. & Hutzler.

Montana-Dakota

sell

was

Utilities Co.

reported the company plans to issue and

undetermined amount of first mortgage bonds in

in early 1959. Underwriter
competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;Merrill Lynch, Pierce, Fenner & Smith and Kidder,
Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
:
the latter part of

—To

this

determined

year or

Moore-McCormack Lines,
March 24 it

was

Inc.

announced company plans to issue and

$24,000,000 of government insured bonds secured by
ship mortgage on the liners S. S. Brasil:
S. S. Argentina. Underwriters—Kuhn, Loeb & Co.
and Lehman Brothers, both of New York. Offering—Ex¬
pected this Summer.
f
r
sell
a

Utilities

directors in connection with

March 24 it

reported that company plans to issue
$11,000,000 of first mortgage bonds later this year. No de¬
cision as yet has been made as to the procedure the com¬
pany will follow.
Proceeds—For repayment of shortterm

March

mortgage

York.

Inc.

March

(7/24)
company

April

June

Midwestern

^Container Corp. of America
July

been organized to provide a medium

for investment in
shares of companies engaged in business in

'
-

Proceeds—For investment.

the

common

announced

was

—$10 per

bidding. Probable bidders: Halsey, Stuart &
Inc.; Morgan Stanley & Co.; White, Weld & Co. and
Shields & Co. (jointly); The First Boston Corp. and

American-South African Investment Co.
June 13 filed for permission to become
registered as an
investment company of the closed-end
type under the
Investment Company Act of 1940. Business—The
trust,
incorporated under the laws of the Union of Africa, has*

•

plans to issue and
Pro-'',
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding:' Probable
bidders^;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,'
Forgan & Co.; Harriman Ripley & Co. Inc.; White, Weld;
& Co."; Blyth & Co., Inc.; Equitable Securities Corp.
77 Jr

Co.

bank loans and

Prospective Offerings

•

Light Co.

petitive

registration of $25,000,000 sinking fund debentures due

Yonkers, N. Y. Underwriter
Broadway, New York 6, N. Y.

Underwriter—For any bonds, to be determined by com¬

April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 at
rate of

during

senior

mon

Aug. 13.

facilities

Power

ment

service

$10,000,000 of first mortgage bonds due 1988.

ment

& Co., and Goldman Sachs & Co. (jointly).

Kansas

Jan. 27 it

$60,000,000

Chairman, announced that com?/
plans to sell some bonds originally scheduled for'
mid-year, but which sale may now be deferred until late 1958 or early 1959./Proceeds—About $8,800,000 for
construction program. Underwriter—To be determined'
by
competitive
bidding.
Probable*" bidders:; Halsey,Stuart & Co. Inc.? Kidder, Peabody & Co., and Merrill
Lynch, Pierce, Fenner & Smith
(jointly); Lehman'
Brothers; Eastman Dillon, Union Securities & Co. and
Stone' & Webster Securities Corp. (jointly); TJlore, For-7

21 Dan E. Karn, President, announced that $100,600,000 has been budgeted for expansion and improve¬

that

pany

Feb.

Un¬

Kansas Gas & Electric Co.

and exploration costs.

Westland Oil Co., Minot, N. Dak.

of ;

March 31, G. W. Evaps,

sell

Consolidated Natural Gas Co.
(8/13)
Company plans to issue and sell $45,000,000 30-year sink¬
ing fund debentures. Proceeds—New construction. Un¬

•
-

Inc.
March 25 it was, announced that the company plans to *
issue and sell.$3,000,000 of first mortgage bonds.
May
be placed privately. Proceeds—To repay bank loans and »

Feb.

Permanent financing not expected until late
possibly early in 1959.

-Indiana Gas & Water Co.,

about 250,000 additional shares of common stock. Under¬
writers — Dillon, Read & Co. Inc. and The Ohio Co.
or

the end of this year in the form of

announced that the directors have author¬

was

12, George H. Buck, President, said that complans to sell some $7,000,000 in new securities by •
first mortgage bonds ;
preferred stock. Recent bond financing was made

pany

May 26 filed' 564,000 shares of common stock. Price—At
par ($1 per share). Proceeds—For capital expenditures
derwriter—None.

(

Oil

March

for

Consumers Power Co.

Office—Santa Paula, Calif.

announced company

in 1958

N. Car.

June

fered

(jointly).

New York.

Great Atlantic & Pacific Tea Co;

program,

which is expected to cost about $11,250,000 during 1958.
Underwriters—First Boston Corp., New York, and John¬

a rrrsr preierrea

Rosa"

be placed

(7/16)
cumulative preferred
(no par); Price—To be supplied by amendment.
Proceeds—To be added to the company's general funds

"Santa

stock

Washington Gas Light Co.

new -

(formerly known as
Co.) intends to obtain a minimum \
$2,000,000 and a maximum of $5,000,000 via an offer-7
March 10 it was reported company may issue and sell in
ing of new shares of common stock to stockholders in *
1958 about 450,000 additional shares of common stock. 7
August or September. Proceeds —For working capital.
Underwriter—To be determined by competitive bidding.,;
Hackensack Water Co.
Probable bidders: White Weld & Co.; Kidder, Peabody ■
H,
Registration—Expected about July 9.

York.

New

June 25 filed 60,000 shares of serial

to be

60,000 shares of common stock. Proceeds—Working /
capital. Business—Electronics. Office—391 Ludlow St.,

Stamford,

oonas* secured

the

The

Feb. 19 it was reported a secondary offering of common
; > voting stock is expected in near future. 'Underwriters—
y
May include: Blyth & Go.;; Inc.; Carl M. Loeb, Rhoadea .

>7-

for the year 1958 anticipates the sale of both
debt and equity securities (probably preferred stock)
aggregating approximately $5,000,000. Both issues may

•

period at not less than $11 per share. Each $1,000 deben¬
ture to carry warrants to subscribe for 100 shares of
'

mortgage:"on

Paula."

000,000 each.

Co., Birdsboro, Pa.
J
was reported the company plans to issue $1,500,000 of 10-year subordinated debentures, with detach¬
able warrants to subscribe to capital stock for a 10-year

V "-//7'

insured

and "Santa V."
financing will comprise two issues of $9',- ** .:.
Underwriters—Merrill Lynch, Pierce, Fenner and Smith?Paine, <Webber, Jackson & Curtis; Smith, ?^
Barney Co.; White, Weld & Co.; and F. Eberstadt & Co:, rS
all of New York.-Offering—Expected-at end of July.7
ship

Gulf

of first mortgage bonds due
1988.
Proceeds—To redeem $15,000,000 of first mort¬
gage bonds, 5V4% series due 1987, to repay $4,000,000 of
bank borrowings, and the balance together with further
borrowings under a bank agreement and cash generated
in the business will be used to carry forward the con¬
26

June 23 it

capital stock.

May 6 (letter of notification) 300,000 shares of capital
stock. Price — At par ($1 per share). Proceeds — For
development of oil and gas lands. Office—574 Jefferson
Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

Thursday.July 10, 1958

those engaged i to stockholders,>^ilao to;<rffer certain shares*en tfce same -u

B.S.F.

Utah Minerals Co.

June

pn-

gold.

Brothers, both of New York.

April 11 (letter of notification) 900,000 shares of com¬
mon stock. Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—305 Main St., Park City,
Utah. Underwriter—Walter Sondrup & Co., Salt Lake

.-J

er|ipbasis

first preferred

and

Volume

188

Number

5758

Commercial and Financial Chronicle

The

St.

New

sell

England Telephone & Telegraph Co. (8/26)
was announced company plans to issue and
$40,000,000 of debentures. Proceeds—To redeem a

amount of 4%%

April

11 it

summer."

this

authorizing

Halsey, Stuart & Go. Inc.; The First Boston Corp.; Mor¬
gan Stanley & Co.
Bids — Expected to be received on
Aug. 26.
■
'
'

500,000, and

State

Electric

and

loans

expected to

are

July 16 for the purchase from it of $2,340,Q00. of series
D equipment trust certificates. Probable bidders: Halsey,
Stuart & Co.

10 it*

tember $20,000,000 mortgage bonds
supply from Northern Natural Gas Co. is approved

Federal Power Commission.

In event this project has to

gram a

(Government of)

for the country.

Corp.;

May

may

the

(8/25)

are

announced that the company contemplates

stockholders

Glore,

Stone

Pacific Telephone ! Telegraph Co.
Jan. 3 it

authorized

United

States,

Canada

and

the

United

The Chase Manhattan Bank, The First

Kingdom.

National City

York, and Bank of America National Trust
Association. The Chase Manhattan Hank will
be the fiscal agent for the credit.
The amount of the
new financing involved is in the neighborhood of $259,000,000., The purpose is to restore government, balances
which have been reduced by the repayment of excessive
short term obligations previously incurred.

March 17 it

Power JL Light

was

Co.

announced that company plans to Issue

$10,000,000 of first mortgage bonds. Proceed*—To retire bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Smith,

and sell

100,000
Underwriters—

stock (par $50)w
Securities Corp. and Paine, Webber,

Barney & Co. and Robert WY Baird & Co*, Inc.

was

writer—To be determined by

able bidders:

Halsey, Stuart & Co. Inc.; Kidder; Peabody
Co., Inc.; The First Boston Corp. and White, Weld &
(jointly); Morgan Stanley & Co.; Eastman Dillon,
Union Securities & Co., and Salomon Bros. & Hutzler
&

Wisconsin Public Sorvlco Corp.

Co.

March 4 it

Bids—To be received up to noon (EDT) on
July 15 at Room 2018, 70 Pine St., New York 5, N. Y.j

-(jointly).

/Southwestern Bell Telephone Co.

of Missouri

was
announced that, the company plans
early registration of $60.000,000Yof first refunding mort¬
gage bonds due 1988.. Underwriter---Td btf determined
by'competitive bidding. Probable bidders: Halsey, Stuart

*'The Polish

been

• Standard Oil Co.

July 2 it

people have

reach

was

Soviet Failures and

(New Jersey)

announced that the-company plans early

rent

year.
on.

petitive bidding. Probable* bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.;, White Weld & Go.;, The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Eastman Dillon,, Union Secu¬
rities & Co. and Salomon Bros. & Hutzler <jointly);
Kuhn, Loeb & Co., and American Securities ~
(jointly). (2) For any preferred stock—Merrill
Pierce, Fenner & Smith; Salomon Bros. & Hutzler
v.agtmaa
Dillon, Union Securities & Co., (jointly)? Leh¬
man Brothers; Kuhn, Loeb &rCo» and A. C. AHtyn & Co.
Inc. (jointly); The First Boston Corp.; White, Weld U
Co.; Kidder, Peabody & Co.
>

capital

taking

COMING

EVENTS
In

and inside Poland.

Field

Investment

"The possibility of Poland emu¬

Urges New U.S. Policies
actually winning

over

leader

any

of the newly-independent nations.
"Now with the murder of

Nagy,

how many

of these nations today
believe- that
the
Kremlin's

can

intentions

are

high-minded,

that its motives

motives

dreary, monotonous
world conquest?

old,

"Khrushchev
nized

the

"would
with

disenchantment

these

come

the

recog¬

execution.of

that

countries

:•

Nagy; Ob¬

viously he felt the greatest danger
to his regime was the independ¬
ence

of other

nations,

nations.

munist

not been lost

This
the

ing countries. With
Khrushchev

has

new

one

picked

axe.

haps

been

the

failures.

these

Khrush¬

that

chev has succeeded in doing is to
make the Western alliance

firmer

and

tighter

stronger

than

Johnston

to
the

linked

the

position

Soviet

murder

Poland

constellation,

saying:

^"Poland, now straining at the
leash that holds it to the Kremlin,
might

"Was
such

have

gone

Yugoslavia—toward

Nagy murdered to create
incident?

this

Wouldn't

the Polish people the

high cost of deviationism? Wasn't
this

clear

warning that the trend
toward independence led to an¬
other Hungary — and not to an¬
other Yugoslavia?"
In conclusion, Johnston asked:

years,

mean

"We

these

events,

last

the

learn for weeks,

what may
the present turmoil

matter

means

the
an

of
independ¬
way

brand of communism.

thing we can

one

what

tactics

and

adopt.

may

dynamic policies—independ¬
anything the Kremlin may

Far
the

too

often

United

in the

States

mitted the priorities of our

"We

quest

must

from

to
our

Denver

Rocky

pv)R

Club.

lumbine Country

(Cincinnati,

Sept. 18-19, 1958
Ohio)

Municipal Bond Dealers Group
annual outing — cocktail and
dinner party Thursday at Queen
City Club; field day Friday at
Maketewah Country Club.
Sept.

never

per¬

foreign

again

permit

objective of global con¬

distract us
consummate objec¬

swerve
own

tive of global

29-Oct.

(Colorado

1958

Springs, Colo.)

Traders Asso¬

National Security
ciation
the

Convention

Annual

Broadmoor.

Oct. 6-7, 1958

and

freedom."

Firms

(Boston, Mass.)
of

Stock

Exchange

Governor!

Board

Hotel.

meeting at Somerset
Nov.

past, we

have

policy to be set in Moscow, rather
than in Washington.
the Soviet

nual

Association

ent of

Group IBA 24th an¬
summer frolic at the Co¬

Mountain

the West,

new

un¬

"This presents us with a greater
need than ever before to shape
new,

Club

Bond

months,

for

ceasing in its drive
no

two

try Club, St. Clair, Mich.
Aug. 21-22, 1958 (Denver, Colo.)

to us?
not

may

out

come

these

failures

perhaps

do.

ever."

Nagy

people without

dramatic incident?

be sure. The Kremlin will be

NATO—has per¬
most colossal of
All

some

in Russia. But of

"The Kremlin's fourth objective

break

outing at St. Clair Inn and Coun¬

warned

to the Polish

over

"What

NATO

—to

ulka about the consequences. But
how
could
he
get the warning

Kremlin

fell swoop.
off the

(Detroit, Mich.)

Basis Club first annual summer

has

develop¬

July 11. 1958

Gom-

Khrushchev

com¬

swept

smiling false-face and
the executioner's

even

lesson

real

was

the Soviet Union. Per¬

impress

have

must

Yugoslavia

haps

the same,

not

are

lating
menace

half of the cur¬

The type of securities has not yet been
Underwriter—To be determined by com¬

never

their

objectives—
even when surrounded by Russiandivisions on the east, on the west

Eric Johnson Notes

registration of approximately 10,850,000 shares of

over-concerned

risks

announced company plans to sell about

Inc.; The First Boston -Corp.;- Kuhn;YLoeb & Co.
Bids—Expected to be
reeeivedYup to 11 a.m. (EDT) on Aug. 20.-

Under¬
competitive bidding. Prob¬

marketed in late September,

Lehmaix Brothers-(jointly).

Co.

page

outstanding issue.

refund

Halsey, Stuart & Co. Inc.; Morgan Stanley
Offering — It is believed that the issue will be

able bidders:

May-it

from

Proceeds—To

writer—To be determined by

was

$12,500,000 of new securities in the last
decided

(9/30)

has asked the Public Service Commission
for the right to issue $110,000,000 of deben¬

The company

tures.

Continued

due Aug. 1, 1988. Under¬
competitive bidding. Prob¬

collateral trust bonds,

gage
-

(jointly);

Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co* (jointly); White, Weld & Co., Kidder,
Peabody & Co. and Salomon Bros. &r Hutzler (jointly):
The First Boston Corp.; Offering—Not expected until
late in 1958 or early in 1959.

(7/15)

Company plans to issue $22,000,000 of 30-year first mort¬

"r Y /

Public-Service Electric & Gas Co; (8/20)

ent

first step in the pro¬

& Savings

additional

preferred
Webster

Southern Railway Co.

•

reported company plans $300,600,000 capi¬
tal outlay program. Proceeds—For construction program
in 1958 and .1959 ($137,000,000- in: 1958)2; Underwriter—
To be determined by competitive bidding; Probable bid¬
ders— Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

Bank of New

Jackson & Curtis.

Pacific Gas & Electric CoY:/'':. YYYV .'.''YY''
March 2d it was reported company: plans sale of5 an
undetermined amount of; bond's.and preferred stock in
the latter-part of this year or. early-1959. Underwriter
—(1) For- bonds to be determined by competitive bidding. , Probable bidders—The First Boston Corp. and
Halsey,Stuart & Co. Inc. (jointly); Blyth & Co., Inc.; (2)
For preferred stock: Blyth & Co., Inc.

and

short-term credit is being negotiated between the,

in cooperation with' the two investment.
banking firms and a syndicate of commercial banks hi

>«.„■

Co. Inc.; First Boston
Forgan-& Co.; .Blyth & Co., Inc. Y1
V-

and

government

Southern Colorado Power Co.

calls: for: $90,000,000 outlay J /Underwriter—To be
by competitive bidding." Probable bidders:?'

Halsey, Stuart &

'•

1 />

Wisconsin

determined

•'

Aug. 25.

be deferred, company will likely issue $10,000,000 bonds
later in, the year.
Company's 5-year construction pro¬
gram

Kidder, Peabody & Co.„ both of New York,, have
as financial advisors to develop a financial

program

$50,000,000 of first and refunding mort¬
gage bonds.. Proceeds—For construction program., Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co.; First Boston Corp., and Dean Witter & Co. (joint¬
ly); Blyth & Co., Inc. Bids—Expected to be received on

will sell this Sep¬
providing new gas

market;.,

July 1 the Government announced that Kuhn, Loqfy &

the sale of about

announced company.,

was

announced company plans to

The three institutions which are to head this syndicate

Southern California Edison Co.

July 3 it

Inc.; Salomon Bros. & Hutzler.

Y, Northern* Illinois Gas Co.S
June

•

been selected

for $16,000,000 construction program.
Bonds
placed privately through Kidder, Peabody & Co.

be
on

„

■

Co. and

./•'

(7/16)

received; by the company

St. Louis, IMo.

this year or
construction program.
Venezuela

was

used

Norfolk & Western Ry.

announced by the company that it plans
to sell some additional bonds during the latter part of
the >ear. Proceeds — Together with bank loans, to be

market conditions. Underwriter—For any common stock:
The First Boston Corp., New York.'/"Y:. V....4'
•

by competi¬

South Carolina Electric & Gas Co.

April 7 it

was

stock in the latter part of.
in the first quarter of 1959. Proceeds—For

year

Bids

be determined

March 28 it

about $30,000,000 of common

program.

Halsey,. Stuart & Co. Inc.;
Smith, Barney & Co., Glore, Forgan & Co. and Blair
& Co. Inc. (jointly); White, Weld & Co.; Equitable Secu¬
rities Corp. Last preferred financing was done privately;

of banks and expects to sell equity securities later
or in early 1959, depending-upon prevailing

group

this

line, of credit with

new

bonds

construction

tive bidding. Probable bidders:

$7,500,000

from additional financing will be required for construc¬
tion expenditures for the balance of this year. The man¬

agement intends to negotiate

for

and

Union Electric Co.,

bank

short-term

Gas Co.

that approximately

announced

was

Refining Co. stock.

increase in preferred stock from 25,000
shares to 50,000 shares. Proceeds — For repayment of

...

(par $7), now authorized but unissued. The com-ycontemplates issuing approximately five shares of
stock for each four shares of Humble Oil &

Standard

The stockholders on May 21 voted on
increase in bonded indebtedness of $6,-

Underwriter—For

York

New

March 7 it

pany

announced

was

be determined by competitive bidding. Probable bidders:

stock

that the compauj plan* to
market $6,500,000 in bonds or preferred stock "sometime

Underwriter—To

bonds due 1961.

Joseph Light & Power Co.

April 15 it

(139)

30-Dec.

1958

(Miami

Beach, Fla.)
Investment Bankers Association
of
at

America

annual

convention

the Americana Hotel.

Nov. 2-5, 1959

(Boca Raton, Fla.)

National Security

ciation

Annual

the Boca Raton

Traders Asso¬

Convention
Club.

The Commercial and Financial Chronicle

(140)

Y. — Kenneth
engaging in a securi¬
from offices at 639

six

SYRACUSE, N.
8. Baker is

ties

By Group

South Warren Street,

Group Securities, Inc.,

$5-Billion Mark

private portfolio investors now hold more than $5,317,in Canadian securities, an all time high, according to

FUN!

William F. Shelley,

Co-Chairman

and

The

Canada General Fund, Ltd.,
Committee of Canadian Investment

Vice-President

G uaUi Stocks

SvufSt

FREE INFORMATION

TO
DEALER OR

FOLDER AND PROSPECTUS

NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930

120

Broadway, New York

investment in Canadian
40%:

estimated

investment

in the

companies, in behalf of more than 127,000 U. S. share¬
holders, have contributed substantially to renewed U. S. long-term
portfolio investment in Canada since 1954."
."
investment

Shelley pointed out that the more than $300,000,000 of
Canadian securities investments held by the eight
investment companies accounts for more than one-fifth of the
Mr.

long-term

$1,440,000,000 increase in total Canadian
made by U. S. citizens since 1954.
.

securities investments
..

•

By encouraging substantial long-range U. S. private portfolio
investment in Canadian securities since 1954, Mr. Shelley empha¬

sized, the eight registered Canadian investment companies effec-,

tively implement often-stated foreign policy objectives of
the Canadian and U. S. Governments, while at the same

both
time

meeting the needs of U. S. citizens desiring to make long-term
investments in the future economic growth of Canada.

interested

"The

In
Canada
fund

ATOMIC

fact

that

investment is

portfolio

the

increasing in

through the mutual

and is being practically encouraged

vehicles

balance

supplied by these companies," he said, "serves to

impact of direct U. S. investment in Canada in

constructive and practical manner.

the

prospectus describing Atomic
fund has

than 75

mutual fund investors are providing essential

holdings of

most welcome to Canada. A

stocks selected from among those
of

ment

companies active in the atomic

field with the

objective of possible long-term returns and not

economic and industrial

that of

capital

basis

investors to participate in

growth without arousing Ca¬

nadian concern over domination of her

$1.59

$1.44

$115,606,210.

selects

Anderson, President,
items for special

One

increase

is the

Development Securities Co., Inc. Dept C
,

WASHINGTON 7, D. C.

encouraged

industries by U. S. capital.

increasingly clear that portfolio investment should
as

important and effective factor in preserving

mutually beneficial economic relations between the two nations."

participating
other

reinvesting

dividends

their

securities

cal

and

profits

made

were

22,783 investors',.holding a
6;438,627 shares. By July
1, net asset value had advanced
further to $10.34 per share..
total

"enabled the
strongly resist
general market decline termi¬
nating^ last October, and- subse¬
quently to rise to a point where it
currently is above its price at the
time the general market made its
high in July of 1957, after adjust¬
ment for the 1957 year-end dis¬
tribution
of
securities
profits.
During the six-month period cov¬
ered by this report, the per share
price gained 13.6% at a time when
the Dow-Jones Industrial Average
in

the

40%
to

gain in the

kfajor increases

common

share price

MUTUAL

Referring to the company's 19
funds, for the most part

$10.64 PER SHARE

—

"all

six

but

showed

better

price performance in this particu¬
lar
six-month
period than the
2.9%
gain for the average re¬

than the

pubiic

gener¬

ally about the readjustment that
is taking place in the economy.
would

question

that

anyone

has any real doubt that the longer
term forward movement of the

the

line.

same

token,

While the evidence is not

yet conclusive, it is our belief that
business conditions have
suffered about as much as they

general

KELLER BROTHERS

the

constituted

net

assets

21%

the

the
of

end

half-year.

Keystone S-2 has 53 issues in 141
Largest in¬

dividual

holdings

are 1

Standard[

Corp. and
tics Corp.

Westl
General Public Utili- [

additions

The
of S-2

the

portfolio I

Consolidated Edison;

were

General

Flintkote;
McKesson

Telephone;
Robbing; Reynolds

Roller

Bearing.

,■>*,

in|

$10 Million Sales
First 21

Days for!

One William St.
Investor
William

Ftl.|

purchases of The One

Street Fund, Inc. totalled

$10,437,194 during the Fund's first
21
business
days
of operation,
ending June 30, Dorsey Richardsou, President of the Fund's prin¬
cipal underwriter, William Street|
Sales, Inc., reported.
The June sales of the Fund

resented about

10%

rep-1

of the recent

may

Established 1894

COURT

ZERO
•/..

•

CO., INC.
STREET,; BOSTON

(corner of Washington Street)

•'

in this particular correction
that, following some further
period of consolidation, the dy¬
namic forces underlying our econ¬

average

and

BULLOCK

open-end
investment
company |
shares, Mr. Richardson said.
Already the 11th largest mutuall

omy will again assert themselves
in another strong forward move¬

furid

ment."-

Telephone Richmond 2-2530

Fund's

(R. J.)

above."

continue.
would
question that anyone expects this
growth to proceed in a straight,

—A U. S.

Addr

holdings

cial Corp., Central and South

on request.

GENERAL DISTRIBUTORS

Nam*

23,000 shares of Tampa Electric,
phis sizable increases i'n several
issues already held.
The utilities

representing investment in asingle
industry — from automobile to
utilities
the statement is made

American economy will

ONE WALL STREET, NEW YORE I

were made in
with the addi¬

27,500 shares of Consoli¬
Edison of New York and

Brands, Sinclair Oil, C.I.T. Finan¬

CALVIN

May 31.

other

concerned

FUND OF BOSTON

incorporated mutual fund pro¬
viding diversified, managed investment is
Canada. For free prospectus mail this ad to

ago

year

industrial categories.

review.

during the period, expresses "our
hope that those who have read
these messages during the past
two or more years may be less

SECURITIES

Prospectus

field

dated
.

during the six-month period un¬
der

utilities

tion

company's bal¬

per

of the S-2 assets

approximately 20%

the

fund, known as The Fully
Administered Fund, resulted in a
12%

reduced by: 1.3 cents

the Fund's holdings in the highyielding railroad, metal, steel and
auto
stocks
were
halved, from

shifts

was

per share, adjusted for the 70 cent
capital gains distribution declared
last November, the result of port¬
folio changes designed to replace
certain securities by others with
stronger
capital
and.
dividend
prospects. In view of less favor¬
able
performance
expectations,

These shifts, it is said,

Similar

Income

that

•*..

climbed

with

during the past two
in the type of com¬
held for that fund.

gain of but 2.9%."

end

Net asset value per
to $10.17 on May
from $9.33 six months earlier,

the

management.
share

share price to quite

showed

assets

period reached
$65,510,427,
making S-2 the largest of the ten
domestic funds
under
Keystone

years or more

mon'. stock

net

the

Pointing to "another item that
worthy of special com¬
ment," attention is called to a
gain of nearly $11,000,000 in the
assets of the company's Common
Stock Fund during the six-month
period, to a figure of $37,905,988.
Reference to this growth is fol¬
lowed by special comment on the
shifts"

report

May 31.

Total

seems

"substantial

and

according to the semi¬
for
the
period

year„

annual
ended

at asset value.

effect of

highs

shareholders

share for the first half of the fis¬

regularly

are

number

for

Tobacco; Tampa Electric;
Union Bag-Camp Paper; and U. S.
In commenting on the current
Fidelity & Guaranty. The elimi¬
outlook, Mr. Anderson, recalling
nations include Atlantic Refining;
the generally conservative attitude
Burroughs; Ekco Products; Phelps
of the Group Securities manage¬
Sunbeam;
and
Timken|
ment in messages to shareholders Dodge;

ISSUE

INITIAL OFFERING PRICE

value per share and hit new

under

plan,. 5,444

this

shareholders

7 %'

+10%

Reports Gains

the aggre¬

held

17ft

Keystone Income Common Fund
S-2
increased
9%
in net asset

this plan had grown tq $5,887,091
at i May 3f>d>.In addition to those

ferred

NEW

noted that

gate- value, of shares

$8,942.87711 [+

holdings
through
the
company's I Periodic
Investment
Plan.

Inc.

Dec. 31/57

Kevstone S-2 Fund

several

their

that
It has become

1033 THIRTIETH STREET, N. W.

6,210,275

June 30/58

anced

rising volume of U. S. portfolio invest¬

Canada enables more U.

Canadian

objective of possible

growth in principal and income.
Atomic

;Vt.6 Mos.

■.

6,616,832

stocks held lor the

' V

imposing U. S. control on Canadian business, U. S. portfolio and

Development Mutual Fund, Inc. This

Out..,

"And, since U. S. portfolio investments in Canada are based on
We will be glad to sendyou a free

high.

Val. per. sh.

distributions

$315,000,000 of private U. S. investment capital to work in diversi¬
fied, professionally managed investments in a broad range of
Canadian securities. Thus the operations of these eight Canadian

assets

all-time

Shs.

"This record $5 billion volume of U. S.
now
accounts for more than

net

$10,511,491

$1,440,000,000 over their long-term Canadian holdings of $3,877,
000,000 at the end of 1954, the Committee Co-Chairman stated.
During the same period, it was estimated, direct long-term invest¬
ment in Canada by U. S. corporations rose to about $7,964,000,000,
an increase of $2,177,000,000 over direct U. S. Canadian investment
of about $5,787,000,000 at the end of 1954.
•

"This proportionate decline was slowed in 1954, when the
registered Canadian investment companies began to put more than

investment dealer

total

reached

assets,

Herbert R.
•

"Prior to the formation of the registered Canadian investment

PHILADELPHIA 3, PA.

fund

total

companies in 1954, long-term U. S. portfolio investment in Canada
had tended to decline in proportion to U. S. direct investment,"
he explained.
I:' •

which date

Net

comment.

$131281,000,000 of total portfolio and direct
economy of Canada," Mr. Shelley pointed out.

Prospectus from

the

about 20%, to 4,234, ill the number
of shareholders adding regularly

5, N. Y.

CFC

about 2,500. Total net assets
are
up more than $17,000,000 to
nearly $112,000,000, and to date

]

securities

your

message

private investors*.tat the close of March 1958 held an
estimated $5,317,000,000 of Canadian securities, an increase of
U.

payment of $.008

in Canada.
WRITE FOR

the

Committee, representing registered Canadian mutual fund
investment companies formed since 1954 to serve U. S. investors,
emphasized that there has been a 27% increase over the past four
years in total long-term U. S. portfolio Jnyestir/ents in Canadian
securities, as well as a 27% increase in U. S. direct investment

N(i/urrwl

company."

reported

dividend,

share to be madq on July 25
holders of record as of June

per

the 3.9,175 shareholders, "the num¬
ber of shareholders has increased

The

for your

one

Companies.

YOUR INVESTMENT

101st

Report to Shareholders that "this

U. S.

000,000

Aberdeen Fund has declared its

its current Semi-Annual

cause

six-month period has been a good

INVESTMENTS

the first
Securities'

covers

Group

Aberdeen Fund

leading

mutual fund, comments with good

U. S. Private Investment in Canadian Securities
A MUTUAL

101st Dividend for

Securities, Inc.

By ROBERT R. RICH

Passes

months

25th year.

Mutual Funds

business

Thursday. July 10, 1958

which, it is noted,

Wide Gains Cited

K. S. Baker Opens

•

new

and

to shareholders is in
attractive

format

the

William

serves

The report
a

One

monthly sales of all U.S.

United

Street

approximately

dividual

and

States,

Thel

Fund

now!

100,000

institutional

holders, reported Mr.

in-[

share-l

Richardson.!

188

The

Fund

tions

^lt^lW**ltw^^ut^tiTiirP^tf^t«im'nvfrrvi»iimirrrii1rrrriirrrt'

Number 5753

Volume

commenced

opera¬

May 29 with total assets

hhiiiIimu nmiHwuwui n

w«w

vm&rrtx* m'ulM urn !«■ »!.»«*»■■ ■

Slayton & Co., and R. Woodward

Sutphen,

Mu¬

are

now

Vice-President

19,131,460
shares outstanding, following an
initial public offering by Lehman
Brothers which was the largest

tual

initial "issue

fund''

participation
reflects not only the growing pub¬
lic acceptance of mutual funds as

expanding their
training courses to
cover
new
techniques for mer¬
chandising the plan.

$221,216,128

and

"mutual

of the

vestment

dence
of

vehicles, but also indi¬

the

confi¬

investor

growth
economy", Mr.

long-range

American

the

Richardson said.

'The

accorded

acceptance

level

thus

far

the

mutual

fund

purchases

have

1958

demon¬

strated that the industry is

capable
expanding
its
markets, he pointed out. *
During its first operating-

of,

introducing

the

Investment

Plan

sentatives

substantially

the

month,

securities

fund's

vestment program was

"with

caution

the

portfolio

and

in¬

under way
prudent

selection

and

manage¬

require," Mr. Richardson re¬
He stated that details of
the
fund's
investment
portfolio
will be reported to shareholders
in the first quarterly report, to be
issued in October, covering oper¬
ations
from
June
2
through
Sept. 30.
The fund expects to declare its
ported.

the
the

investors

of individual

names

Automation Fund, Inc., a
investment com¬

Net

nation-wide underwriting
by Ira Haupt &

managed

The

per

Up 5%
of International

assets

increased

Fund

sources

Re¬

$17,-

May 31, 1958, as com¬
pared with $16,606,363 on Novem¬
ber 30, 1957, the commencement
of the current fiscal year, it was
352,416

stated

.share.

shareholders.

the

Net

dates

come

per share on
$3.64 and $3.75

were

approximately 5%, after adjusting
18-cents per share capital

for the

distribution

paid

February

28,1958.
In

reviewing

n!''

de¬

industrial commodities
reflected

natural

in relatively

earnings
state¬
primary producers of

resources,

evidence

that

will

be¬

assets

(or

principally concentrated in the
of flight and space travel
made
possible
through
recent
advancesin jet and rocket propul¬
sion techniques and in the auto¬
mation i equipment field.
Invest¬

the

that

there is how
built-in .Eco¬

ments

also

can

be made

Gov¬

investment grade of such compa¬
nies as defined in the Investment

the

dent

Investments will be selected by
on the recommendation

the Fund
of

Templeton, Dobbrow & Vance,
Inc., investment adviser to the
The dividend policy of the

Plan

for each

added

that

these

will

fees

be deducted from neither the first
12

the last

eight monthly pay¬
ments under the revamped plan,
thus making more funds available
for investment at the beginning
and concluding stages of the 10year plan period.
nor

According to Mr. Slayton, the
optional-group life insurance fea¬
ture will provide coverage of up
to $30,000.
He said this addition
will

available

investors

most of the states where shares of

Managed Funds

being actively

are

comparison of the revised
contractual plan with the original
version reveals a nearly $700 in¬
crease in liquidating value over a
full
10-year plan period—based
on
past performance charts.
Ac¬
cording
new

"Thus," he said, "we appear to
moving towards largescale
development of the next

be slowly

great frontier, the underdeveloped
nations of the world. The gradual
realization of this inevitable pat¬
tern holds

for

the

extraordinary promise

figures presented in the

P.I.P.

sents

prospectus, this repre¬

70%

rise

over

the

producers of

that

both

the

over

intermediate

longer terms, it seems likely
that the enormous raw material
and

requirements of world industry
attach ever-increasing value
to the ever-diminishing world re¬

will

serves

of natural

resources.

The report stated that
tional

Resources

dividend

go
a

Interna¬

Fund intends to

quarterly
single annual divi¬
from

dend.

Although this will have no
effect on the total amount of divi¬

the

obtainable

Man¬

Slayton said the plan will

stocks which

calling

for

monthly

ments of $10.00 over
riod.

havA

+he

available

said

plan

same

shareholders

all

pay¬

10-year pe¬

will

holders

benefits

that

Managed

under

the

are

Funds
fund

Since

new

P.I.P. will be distrib¬

30,

chases in the
tion

the

1957,

brates

Herbert

Anderson, Group's
called
this ' "careful

President,

market averages

were

The

new

Combined net assets of the Na¬
tional Securities Series of mutual
funds reached an all-time

pur¬
sec¬

Long

Co. Eliminated were Allied Stores

Group Triples

acteristic

•

...

Research
and

An increase of 195% in the sale

Sales

reported

Securities, Inc.,
by John L. Ahbe,

President
of

and

Distributors

Director

in¬

Group, In¬

corporated, the sponsor company.

ministered
careful

his

likened

Fund

the

driver who

destination

possible risk.

"We

with
are

attitude

proceeds
the

least

watching

the economic road ahead for signs

that would lead
current

defensive

to change our

emphasis,"

Corporation,

Full text of Commercial and Financial Chronicle : July 10, 1958, Vol. 188, No. 5758

FRASER