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ESTABLISHED IS39
university
MICHIGAN
tk* Commercial
Financial
.
151957
__
Chronicle
IUff. U. S. Put. Office
Volume
18G
New York
Number 5654
EDITORIAL
Economics of
"All
either
systems
therefore,
of
preference
or
of
re¬
Mr. Coleman concludes from his analysis
man,
as
long
own
way,
his
pursue
By WILLIAM F. BUTLER*
Prominent bank executive and
of strength and
generally not unfavorable and
any pos¬
...
development, the bank economist critiques rate of
capital investment, possible excess capacity and declin¬
ing capital expenditures; second-thoughts regarding ef¬
dustry and capital into competition with those
fectiveness of automatic
of any
cal
inevitable
from
stabilizers, counter-cyclical fis-
always be exposed to innumerable delu¬
sions, and for the proper performance of which
may
be short
sees
nothing indicating
human
wisdom
and, from
or
is
It
believed
deed, but
plain and intelligible to common un¬
derstandings; first, the duty of protecting the
society from the violence and invasion of other
independent societies; secondly, the duty of pro¬
tecting, as far as possible, every member of the
society from the injustice or oppression of every
other member of it, or the duty of establishing
an exact administration of
justice; and, thirdly,
can
tain;
expense
to any individual or
to
on
development
that
I
intend
he
made
for
briefly
some
business
DEALERS
tial
1%
or
2%[
to
also
to
inevitable
to
in what
the
This leads
consideration of two other ques¬
a
!
would
What
happen if
to have
continue
are
has been termed•
"laboristic economy "
our
analyze
attempt
on
As you
know, it has been argued that a slow
and gradual rise in prices may be
the short-term
and
3%
or
in the years ahead?
average
significant
of the factors which
worthwhile
is
we
rise
level
we
should
All
to
we
can
do about
changing in such
manner as
a
*An
In
on
32
page
a
brief outline, let's consider
-ues
now
State, Municipal
m
STATE
AND
.
•
DEALERS
THE FIRST NATIONAL CITY BANK
Burnham and Company
MEMBERS
15 BROAD
CABLE:
NEW
YORK ANO AMERICAN STOCK
STREET, NEW YORK 5, N. Y.
•
Dl 4-1400
TELETYPE NY 1-2262
COBURNHAM
120
EXCHANGES
Bond Dept.
Dealers,
T.LWatson&C o.
Commission
American
Stock
CANADIAN
Exchange
STREET
NEW YORK 4, N.
York
Stock Exchange
offices
from
and
On
Y.
DIRECT
WIRES TO
CANADIAN
Goodbody
BONDS & STOCKS
TORONTO
W
•
PERTH AMBOY
115 BROADWAY
NEW
YORK
PoMcoox Securities
<orpoeatio?i
Co.
MEMBERS NEW YORK STOCK EXCHANGE
BRIDGEPORT
1 NORTH LA SALLE ST.
CHICAGO
Municipals
All
DEPARTMENT
MONTREAL AND
BANK
for California
Brokers
Executed
Chase Manhattan
coast to coast
Teletype NY 1-2270
25 BROAD
DALLAS
Orders
New
Canadian Exchanges At Regular Rates
District Bonds
geutfuectt
comeasy?
Banks
34
SECURITIES
Members
New York Stock Exchange
first
THE
BROADWAY, NEW YORK $
Maintained
Markets
CANADIAN
1832
ESTABLISHED
Teletype: NY 1-708
Active
To
County and
DEPARTMENT
BOND
REQUEST
Harris, Upham & C5
Members
OF NEW YORK
Net
Municipal,
NOW AVAILABLE
ON
i
BANK
State.
"market review"
ARE
BROKERS
CORN EXCHANGE
ST., N.Y.
•
UNDERWRITERS
CHEMICAL
30 BROAD
Bonds and Notes
MUNICIPAL
BONDS
HAnover 2-3700
Public Housing Agency
COPIES OF OUR
Municipal
department
and
ifib
Securities
bond
first the
on
investors in corporate
registered with the SEC and poten¬
"Securities in Registration" Section, starting on page 36.
complete picture of is
our
with this
page 30
♦An address by Mr. Butler before the National Conference of the
American Society of Appraisers, New York City, June 24, -1957.
by Mr. Coleman before the Utah Bankers Association,
Utah, -June 18, 1957.
undertakings in
line
Continued
address
Ogden,
afforded
Persistent Inflation?
to alter the conditions
Continued
in
telephone:
past?
what
inflation.
analyze the longer-term trends to determine whether they
are
U. S. Government,
State anil
William F. Butler
rising prices?
Why have we
had inflation in the recent
this will bring us to the final question of
influencing current economic trends.
It
equally, though in
propose to attempt
following questions:
in for persistent infla¬
In other words, will the price
are
tion?
these
of
com¬
manner.
tions:
discuss
to
outlook
28
are
should look forward to
Accordingly I
First,
He
SECURITIES NOW IN REGISTRATION—Unierwriters, dealers and
securities
we
a
persistent upward trend in prices
ahead—provides a common meeting ground
to deal with the
Mr. Mar-
was
different
a
concepts, but it also is important
indicate
the
page
question of whether
of both arts about
contributions.
Coleman
tight
appraisers. I suppose inflation
plicates the lives of the practitioners
would, I am sure,
the first to recognize that others
new
small number of
Continued
Eccles.
helped in the
and main¬
because the profit could never repay
of these ideas
some
be
George W.
surplus,
Without inflation, fore¬
for economists and
riner
duty of erecting and maintaining certain pub¬
and certain public institutions which
never be for the interest of any individual, or
inflation; and prescribes
of government
inflation—to
more
reduce tne
can
of
works
small number of individuals, to erect
world¬
appropriate fiscal and
amplitude of the
fluctuation
of
the
business
cycle.
This
concept
of
the
function
of
monetary and fiscal policies has de¬
veloped over the last quarter cen¬
tury. One of the men who contrib¬
uted importantly to the elaboration
employments most suitable to the interest
society. According to the system of natural
policy
estimates.
The
through
we
liberty, the sovereign has only three duties to
attend to; three duties of great importance, in¬
lic
a
absolves the government
prosperity and growth rate exceeding most optimistic
sees
now
taking place
long-range viewpoint, fore¬
sharp downtrend and
a
that
monetary policies
of the
the
a
false;
blame for
and increased savings.
in the years
try of private people, and of directing it towards
the
run
wide depression.
knowledge could ever be
sufficient; the duty of superintending the indus¬
no
money,
that the slow but not serious decline
must
is
of the
anti-inflationary
policies; direction of long-run price
trend; and the international economic situation. Believes
man, or
inflation
some
'
and monetary
order of men. The sovereign
(i.e., government) is completely discharged from
a
duty, in the
[performance of which] he
other
for
accounts
inflationary rise of 4%, assays the arguments for
and against inflation, and declares that unless we are
willing to vigorously exercise restraint during prosperity
"we can look forward to periodic outbreaks of inflation
[ which will] undermine our prosperity and bring our
growth to halt." Mr. Butler explains why assumption of.
nomic
and to bring both his in¬
economist
recent
probably be minor. Look¬
ing into the longer-range forces liable to influence eco¬
own
Copy
a
Vice-President, The Chase Manhattan. Bank
sible downward adjustment will
he does not violate the laws of
as
justice, is left, perfectly free to
interest his
the economy are
accord. Every
Cents
Tight Money and Inflation
depression factors that the economic forces influencing
a^ay, the obvious and simple system of natural
own
Prosperity
Economist, Mercantile Trust Company, St. Louis, Mo.
being thus completely taken
liberty establishes itself of its
Price 40
By GEORGE W. COLEMAN*
See It
We
As
straint.
7, N. Y., Thursday, July 11, 1957
MUNICIPAL BOND
NATIONAL
40
Exchange Place, New York 5,N.Y.
Teletype NY 1-702-3
WHitehall 4-8161
DEPARTMENT
Bmtk of Atttroro
300
JAVYncs ASSOCIATION
MONTGOMERY STREET
SAN
FRANCISCO, CALIF.
2
The Commercial and Financial Chronicle
(16.2)
.
.
Thursday, July 11, 1957
.
<
For Hank a,
The
Brokers, Dealers only
Security I Like Best
Forum
A continuous forum in which, each
week, a different group of experts
in the investment and advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
rry "HANSEATIC"
ThrougWlong
O-T-C
ex¬
familiar with
New
President
to
York
Hanseatic."
it
estimated
been
have
works
a
that
of
vs.
Other
27c.
tages include
of
source
important
resin
of
Member
the
York 5
120 Broadway, New
BOSTON
•
•
SAN
Private
FRANCISCO
cent
new
of
uniform
is
total
cost
about
is
yfcpONNELI &fO.
York Stock
captive require¬
completion
of this
own
Chemicais
Cary
continue
May,
incorpo¬
was
Nov. 10, 1955
on
business
a
founded
Its principal prod¬
1952.
consists
line
uct
PVC
of
com¬
Industries
wire and cable, and to a
tent
Commonwealth Natural Gas
lesser
ex¬
vinyl
manufacturers of
garden
by
coated
hose,
fabrics,
weather
luggage and
other products. An important vol-
STRADER and COMPANY, Inc
stripping,
of
irne
TWX LY 77
/
'
Great Western Financial
i
oil, an agent
process of reclaiming
used rubber; plasticized gilsonite
compounds for use as additives in
Sting Corp.
Artists
and
Common
6s
Corp.
of
the
soles and
Sugar
sun
reclaiming
in
used
Specia.ty
and
improve resistance to
ageing;
Trading Markets
(United
obtained
wire
rubber-insulated
cable to
Thermo
also
the sale of Antisun, a
blend of specially selected waxes
used
by manufacturers of tires
and
ASegre
is
business
through
Lynchburg, Va.
IPunta
wire
heels, tape and insulated
and
cable;
and
series
a
of
synthetic waxes with high melting
and
chemical
inertness,
points
which
also
have
electrical
good
*69
properties, take a high polish and
highly water resistant.
The
are
Sreewe«iWp(HV\\
ESTABLISHED
37 Wall St., N. Y.
Orders Executed
1980
Tel. HAnover 2-4850
on
Salt Lake Stock
Exchange
has also in the past sold
company
substantial
a
cals
volume
manufactured
by
of
chemi¬
others, but
this
phase of its business has been
sharply curtailed during the past
couple of years as greater em¬
phasis has been placed on its own
manufacturing
Of
operations.
the
1956, approximately 56%
for
by the wire
30,
Official Films
was
accounted
WyomingUranium
cable
and
Producers Uranium
Radorock Resources
Paramount Enterprises*
*
Prospectus
on
Oil
Request
manufacturers
Salt
Lake
1 Exchange PIM
H. Y.
Stock
Exchange)
J^rs^y City, N. J.
Teletype JCY 119
Telephone Dlgby 9-3424
•Hrect private w«r~ to $*lt Lake
City
20%
by
and
the
of
vinyl
tire
by
sheeting,
film and coated fabrics.
Tfte company
$6,000,000
po¬
year)
bond
after
initial
and an
of
$100,000
an¬
$800,000
and
of
capitalization ($2,300,first lien bonds du--
6%
1976, $140,000 of 6% preferred and
60c
would
75c
to
shares
June
at
of
30,
common
1957)
such
equivalent
be
to
share.
However,
though management believes
even
per
results
such
to
attainable
be
in
the
relatively near future, it is
unlikely that they would be real¬
ized
to
during the coming fiscal year
Sept. 30, 1958, for which
end
A.
estimates that
ap¬
B.
FOX
&
(Page
the
manufacture
PVC
fident
of
compounds, and is
that
Max Factor
safer
are. a
share
per
tne cosmetics
m
has
industry, which
spectacular achieve¬
seen some
ments
ancl
fully as spectacular
old line Max Factor &
flops, the
has
Co.
remarkable
a
substantial earning power
in
of
record
appreciation potential
and
build
assets
from
to
it
present
customers
'ndi'stries.
to
its
derive
new
in
the
The
will
have
and
its
con¬
little
prospective
vinyl processing
company
numerous
PVC
Birmingham, Ala.
Mobile, Ala.
Direct
lation
of
within
substantial
Over
potential
a
the
60c
75c
to
next
management
company
household word
ing
and hair
pieces to the motion pic-:
industry. Factor was instru¬
extending
the
use
cf
cosmetics beyond theatrical people
to include an ever
increasing num¬
ber of
and girls.
women
though
the
Today, al¬
association
entertainment
world
with
still
the
holds
important promotional advantages,
the company has won its invest¬
ment
wide
of
recognition
through
distribution
of
a
world¬
broad
line
quality products and by sound
business management.
The
stability
several
be
can
attributed
The
reasons.
Factor
expects
benefits from
plant, the most im¬
Call
Yamaichi
of
are
couple
hopes
son-in-law, and
other
grandson
a
active in top management.
Max, Jr.,
P*
a
i.ighly-regarded
chemist
in
rscnally heads
his
up
maintains
laboratories in the
own
the
division of 40 chemists.
pany
York,
of
facilities
present
operations
enlarge
or
its
building
111 Broadway
in
received
in Hollywood.
In
this division has de¬
exceptional
and Sebb,
response,
strong
is
market.
established
TRANS-CANADA
WISENER
73
Toronto, Canada
King St West -
Trading Dept.;
New
EMpire 3-8204
\
Burns Bros. & Denton
INC.
formula;
for
th
37 Wall Street, New York 5. N. Y.
makeup, face prwder
and other cosmetic
of
still
constitute
sal
company
the
Underwriters—Distributors
s.
Dealers
year, the company set un
project development department
has
expedites
researeh
a
new
dual
purporu.
Investment Securities
I!
products from
t'v
stage until ready for vol
It is also charged
production.
Canadian and Domestic
creating
which
on
COMPANY
AND
LIMITED
rouge
which
with
LINES
Limited
Last
mre
—
of dan-'
devised
been
of
distributed
given Factor
the pharma¬
into
Maintained
Securities
the
All
preparation
now
has
and
entry
also
which
'<
consumer
and control
which
nationally
a
Markets
Trading
PIPE
veloped two perfume lines, Elecand Primitif, which have
a
Banff's
N.Y.6COrtlandt 7-5680
-
•
trique
lines
Investment
<£-
captive
"-i
recent years,
have
Tokyo, Japan
rankers
Firm
and
markets.
ceutical
Securities Co., Ltd.
Yamaichi
ex¬
the acquisition of companies which
can either further
integrate Cary's
a
Inc.
of
accelerate
to
package
derig^
have a strong impact
will
sales.
Max
Factor
$2,800,000
in
expended
1955
and
about
1956
to
expand and modernize its produc¬
tion
faci ities,
paid
all
for
iro n
earnings. Principles of automation
are being used
effectively in some
operations, thus reducing costs.
The
manufactures
company
products
in
Hollywood,
its
England,
in
improved products. Two
metic
New
earning
share
of years.
sons
of
The products are marketed in
Max, Sr.,
1938, head the com¬ over 100 countries, primarily in
pany.
Davis,
Chairman
of
the the medium price range, through
Board, gives his primary attention department stores, drug stores and
sons, a
write
•Saving^
Two
who died
and
or
Securities Company
family has provided continuity of Canada, Mexico, France, Australia,
management. They are dedicated Japan, Argentina and Cuba. Pro¬
cosmetics men who have
always motions of new products are spread
been interested in the
long range through the year to keep produc¬
rather than in
flashy short-lived tion at a.fairly even rate.
results.
information
current
p: r
through continued
power
pansion
as
principal supplier cf makeup
STOCKS
For
annual
the growth of the company's earn¬
became
in
offices
long term, a highly ex¬
and expansion-mi ideri
the
perienced
name
mental
branch
our
a
closer to par.
tais issue wiil
year
a
with
power
bulk
ture
to
Affiliate
Factor.
the
wires
JAPANESE
sinking fund which, based cu the
before-mentioned
profit
projec¬
tions,
might
amount
to
some
$170,000 annually.
The common
Max
a
NY 1-1557
New Orleans, La. -
earnings
as
to support
up
valuatiqn
benefit
lipstick,
the
Exchange
New York 6, N. Y.
fairly early prospect, both
now
stability and sustained growth over
the years.
Founded in 1909 0/
Sr.,
Stock
An'Titan
assumption.
With
for the relief
Co.
&
Yoric Stock Exchange
Acu.
,.Wfd
HAnover 2-0700
earnings closer to 40c
druff,
difficulty in disposing of the bal¬
ance
Steiner, Rouse & Co
19 Rector St.,
ters
Partner, Stern, Frank, Meyer & Fox
Los Angeles, Calif.
5
Members: N. Y. Stock Exchange and
American Stock Exchange
Los Angeles, Calif.
and
proximately half of the output of to financial
administrative
its new plant will be required fo matters, whereas
Max, Jr., Presi¬
supply the PVC resin required dent, concentrates on creating new
own
CAPPER & CO.
industry,
rubber industry, and 24%
for
-Members
leveraged
000
to
company's net sales of
$1,913,494 for the year ended Sept.
Baruch-Kenilind
Calif.
$1,000,000
(vs.
nominal
current
profits). Assuming a 52% tax rat3 stock at around \xk is an intri¬
and based on the company's highly guing
low-priced chemical specu¬
manufactured at its rel^ntly expanded Milltown, N. J.
plant to either standard or special
ormulae for use principally by
fabricators of vinyl coated electric
Insurance Co. of Va.
Electronic
Fox,
er
pounds
Furniture
LD 39
salts
between
earnings
in
Furniture
budget
of
630,000
sales
Trading Interest In
Life
nually,
as
to
Bassett
of $138,000
stock
rated in Delaware
American
interest
some
TEL. REctor 2-7815
B.
Members
Starting next
Cary Chemicals and should sub¬
stantially increase the company's
and earning power.
Exchange
BROADWAY, NEW YORK 5
a
profit,
Quoted
own
to
$5,000,000
pre-tax
a
research
will
expected that roughly 50% will
in taking care of the
The
to
indicate
of
plant thus represents a major ex¬
pansion and integration move for
Exchange
Stock
American
Beringer
be consumed
ments.
New
M.
of
$1,500,000,
company's
120
Stuart
a
have an
capacity
of
12
million
pounds of PVC resin, of which it
Since 1917
A.
2)
market
and
annual
RIGHTS & SCRIP
—
Fox, Los Angeles,
mated for the current fiscal
be¬
built at
Co.
&
Partner, Stern, Frank, Me*
annually (vs. about $2,000,000 esti¬
plant,
new
and
tential
devel¬
Gary's
which
supply both
compounds (affording
ganization,
con¬
oped.
Specialists in
uses
being
ing
re¬
years,
stantly
to Principal Cities
Wires
of
major
with
CHICAGO
PHILADELPHIA
one
fastest
plastics in
Teletype NY 1-40
WOrth 4-2300
been
the
Factor
Sold
Bought
.
the company's 6% first lien bonds
compounding operations); and the and t..e more
speculative common
availability of facilities for the ctock have flecided
appeal for sub¬
development of new or modified stantial
appr ciation. Available at
resins and compounds.
around 75, Cary's 6%
bonds are
Projections, prepared last year secured by a first mortgage on
by a nationally known engineering some
$1,850,000
of
depreciated
and business consulting firm ancl fixed assets ($800 per bo.d) and
backed up by a recent follow-up have the combined attraclion of
market survey
by the same or¬ an 8% current yield plus a 35%
op¬
PVC
growing
Exchange
Stock
American
has
1920
Established
resin
ability
ing customers undertake their
pleted and
Corporation
Associate
com¬
in
Co., Inc., New
City. (Page 2)
continuous nearby
a
PVC
protection against the risk of hav¬
placed
&
Brooks
York
advan¬
will
eration.
Max
present list price
a
N. J., for the production of
polyvinyl chloride resin
(PVC)
ton,
New York Hanseatic
W.
New
about
quality;
be
M.
Inc.—Stuart
Beringer, Assistant to President,
P.
Cary
of
cost
Chemicals,
.
17c pt r lb.
plant in Fleming-
new
has
will
City
Within the next few weeks Cary
Chemicals'
to
portant of which should be sub¬
stantial savings in resin cost, for
Cary Chemicals Inc.
"Try
Just
disposal.
your
Assistant
at|
are
offer
P. W. Brooks & Co., Inc.
benefits
knowledge
as an
STUART M. BERINGER
securities
full
The
this
of
aspect
every
unlisted
the
of
market.
they to be regarded,
iabama &
i
Selections
Louisiana Securities
are not intended to' be, nor
sell the securities discussed.)
(The articles contained in this forum
are
intimately
is
Participants and
Their
Cary
perience, our large Trading
department
Week's
This
rt
cos¬
right,
search
The
com¬
well-equipped
headquar-
new
drug wholesale houses.
Building
on
this
solid
founda¬
tion, Max Factor has been
trating
concen
Over-the-Counter
Quotation Services
for 43 Years
¬
achieving substantial
sales
increases through the
tool
of advertising.
Last Autumn, the
on
company
work
viewed
on
country
entire
began sponsoring
television
on
129
show
stations
Tuesday
product lin
Continued
a
net¬
which
National Quotation Bureaa
is
Incorporated ' '
the
across
night.
The
is being
Established
pro-
46 Front Street
CHICAGO
on
page
47
1913
New York4,N.Y.
SAN
FRANCISCO
Volume
Number 5654
186
.
The Commercial and Financial Chronicle
.
.
(163)
3
INDEX
Articles and News
Maiket and SEC Regulation
Tight Money and Inflation—William F. Butler
By JAMES C. SARGENT*
In
The Economics of
Securities and Exchange
Washington, D, C.
Commissioner,
bond financing nntil
Regulation—James C. Sargent
Growing Life Stocks—Ira U. Cobleigh
I
would like to discuss
the
current
day's
the
money
utility
oi the
work
»
Public
the
Utility
Hold-
v
Company
ing
—-Walter
jpanies.
—Lloyd
V
trolled *•
.
into
which
of
the
•
12
Electric Power and Its Impact Upon the Economy
on
S. Black.
URANIUM
13
Chemical Research's Impact
of Our State
DOESKIN PRODUCTS
on
14
Tomorrow's World;
ADVANCE
INDUSTRIES
'
John R. Callaham
—
Apportioning
—._~L
Hydroelectric
Costs
The United
1$
___
Between
Taxpayers
Consumers—Arthur Kline.
HYDROCARBON
and
;
16
CHEMICALS
States Environment for Private Insurance
*
S.
—S.
Huebner
Research's
18
Explosive Effeet Upon Long Range
TIDELANDS
RIMROCK
Outlook
'
-—Murray Shields
Frear
__
26
__
Bill Would Unnecessarily Burden Business in General
—Henry G. Riter, 3rd——1_——_
y
22
'-""/v'"""
companies,
r\
:.*'v
IBA Presents Booklet
certain1 size standards t*
physically^: inte¬
on
J.F.Reilly&Co.,Inc.
^
Member Advertisements
Members Salt Lake City Stock Exch. '
21
Spokane Stock Exchange
Guaranty Trust Co. "Survey** Assails Easy Money Fallacy..— 22 '
grated systems operating in cdnt- ;
pact geographical areas and/which >
re-
; had been boiled down to soundly
financed systems with
unneces-
c
entire !>
the
Factors
■
^Corporation Laws—George C. Seward
Congress conof elec¬
holding
by
met
constituted
ana
the fj
organization
Related Monetary
and
'
pf '
this legislation •
nor
Outlook
STREET, NEW YORK
Telephone: WHitehall 4-6551
10
____
The Movement for Modernization
eluded that those groups
enactment
extensive.
__
Raisty
—Fischer
tric and gas utility companies eon- :v
thev
to
Heller
Problems
_
Therefore,
will not go m- #
to the history /
led
Wall!
99
LUCKY MAC
Counting
v
I
of events that
E.
The Economic
companies:- It recognized
of folding
/
Act of 1935.
WALL
99
and -some could be operated more econojuically and could provide better
service to the consuming public
as coordinated systems than as in- >
dependently operated utility com- t
SEC's
under
discovered
Obsolete Securities Dept.
9
Federal Tax Reduction Program for Two Financial
problems which to- that a number of groups of elecmarket presents to -trie
and gas
utility properties
industry,
just
6
Labor Outlook Until 1960—Roger W. Babson
extension
some
Has
4
more
a
Fulbright Bill's
supports
3
Trends in the Money Market—-Woodlief Thomas.
of financial reporting,
insider trading, and proxy requirements to more firms; and
states self-regulation has proven to be unsuccessful.
-
HAPPY FELLA
L
company
propitious period; denies
SEC blocks joint financing and other cooperative efforts;
."
THE MOST
—Cover
Public Utility Financing and Money Market and SEC
possibly be sold in anticipation of funding requirements for as
much as two or more years ahead and, similarly, to stretch
out
Cover
Prosperity—George W. Coleman
Commission,
financing
subject to SEC jurisdiction, Mr. Sargent discusses preservation
of sound capital structures in current money market and
answers
arguments against the persevering caliability policy
of the Commission. In indicating SEC's concern regarding cost
of capital to public utilities, the Commissioner stresses the
importance of timing and flexibility of long-range financial
planning, and proper capitalization ratio. Advises utilities
to sell as much common stock in today's market as can
r
fathoming public utility and holding
Page
sary
corporate complexities removed, could continue in existence
as holding company systems subgas utility industries which has taken place ject to permanent regulation by
pursuant to the provisions of this the Commission of their corporate
Act during the past 20 years. This and financial transactions, i
j
story has been told many-times.
p€spite the contraction in the
Suffice
it to
say
that whereas area oi our interest in the public
some
90% of the electric utility
utility business, one of the Corn,
1
Marcus Nadler Finds Boom Ending, With Recovery to
; ;
DIgby 4-4970
Follow Respite
HEnderson 4-8504
Teletype:
24
A Beginning, Bqt Only a Beginning, of Wisdom
r
Oa
Exchange PL, Jersey City
JCY 1160
(Boxed)— 35
electric* and
industry and natural gas pipeline
mileage of the United States "was
subject to holding company control when the Act became law in
1935, today only about 20% of the
aggregate assets of these industries continue under the control of
holding companies.
;
On
June
.
public
utility "holding company systems
were
still
registered
with
the
Commission
and
approximately
of these
seven
released
1956,
30,
from
are
expected to be
the
the Act by means
disposal
23
jurisdiction of
of exemption or
of their domestic
utility
We anticipate that the
properties.
remaining 16
tinue subject
systems will conto the Act indef-
to
of
reserves)
$8.5
some
billion.
VT
,
.
,
..
,,
-J11.®? to Abolish All
the rather widespread popular misconception, the
Congress in drafting the 1935 Act
to
intention of
(Editorial)
abolishing all
*An address by Mr. Sargent before the
Legal Committee Meeting of Edis-on Electrie Institute, Buck Hill Falls, Pa., June
20, 1957.
Man's
For many years we '
specialized in
Coming Events in the Investment Field.
Dealer-Broker
Einzig:
Investment
"Backdoor
Recommendations
Nationalization
McRae Oil & Gas
11
8
Plans"
19
Singer# Bean
From Washington Ahead of the News—Carlisle Bargeron—
14
Indications of Current Business Activity
46
Mutual
44
Funds
._——
——
&
Mackie,
HA 2-0270
NSTA Notes
15
—
News About Banks and Bankers
Wilfred
May
Reporter
Governments
27
Our
Reporters Report—
on
'
Direct Wires to
5
Our
,
Teletype NY 1-1825 & 1-4844
17
Observations—A.
INC.
40 Exchange PI., N.Y.
Philadelphia
Los Angeles
Chicago
Dallas
41
our
Public
adequate disclosure of in- *
iormation by the issuers
to investors, under the Hold-
I
Securities
Utility
Railroad
of seeuri-
^ required to pass upon the terms
and
provisions oi securities issued by registered holding com-
_____
Securities Now
21
___
1,
Securities
31
Registration
in
Moki Oil &
Rare Metals Co.
36
systems and even
pany
upon
Security Offerings
Prospective
Security
the '
The Market
methods employed for tueir sale.',
Thus, we are concerned with the j.
35
The
.
.
.
and You—By Wallace Streete—
for<?
whirh
are
set
Ollt
in
l0rS wnjcn are sei OUi m
the
an-
Security I Like
Best
Continued
on
page
■
-
*
Published Twice Weekly
.
'
Reg. U. S. Patent Office
;
WILLIAM B.
1
Diapers'
Park
25
'
n
•
Chicago
•
Glens Falls
Publisher
Thursday, July
Every
vertising
11,
1957
}
Thursday (general news and adissue/ and every Monday (com-
statistical issue—market quotation
records^ corporation news, bank clearings.
Schenectady
•
a-d
news
Worcester
Other
Chicago
135 South La Salle St.,
(Telephone STate 2-0613);
Offices:
3,
HI.
etc.).
;
matter
March
Upson Co.*
Pacific Uranium
Eng¬
Possessions,
in
Canada,
-
.Note—On
rate
of
account
$63.G0p
of the
exchange,
per
INCORPORATED
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WHitehall 3-3960
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)
fluctuations
remittances
for
in
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eign subscriptions and advertisements must
be made in New York funds.
:
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S.
Bank and Quotation Record — Monthly,
$40,000 per year. (Foreign postage extra.)
the
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of
Other Publications
-
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Request
W!* V. FRANKEL & CO.
U.
Members
Other Countries, $67,000 per year.
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on
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Prospectus
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States,
and
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United
Territories
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Rates
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Dominion
st"*•
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plete
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second-class
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Subscription
**
,
WILLIAM DANA SEIBERT, President
i
C.
Smith
&
Yo^k^.'Y^iinder theAcTof
Subscriptions
RERBE&T D. SEIDERT, Editor &
ST., NEW YORK 4, N. Y.
TELETYPE N. Y. 1-5
Edwards
E.
,
■
Copyright 1957 by William B. Dana
Company
©Jape, New /York 7, N. Y.!
Members New York Stock Exchange
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c/o
Gardens,- London,
Reentered
DANA COMPANY, Publishers
i
•
■
i
FINANCIAL CHRONICLE 1
REctor 2-9570 to 9576
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48
J
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of America
6
1
Washington and You——
\24
.
Vitro Corp.
2
—
The State of Trade and Industry
>
>11- |
.
PREFERRED STOCKS
TELEPHONE HAnover 24300
Quint a Corp.*
16
provisions of protection of invies-
I
25 BROAD
Universal Transistor*
39
—
Salesman's Corner—
,
:
Nashville
'
5
land.
•
■
29
—
Bookshelf.
The COMMERCIAL and
Albany
.
Radiation Inc.
Pacific Uranium
j
have
Coyer
__
ing Company Act the Commission '
.
Holding Companies
no
the
ties
_
Contrary
had
in
which
It
Bank and Insurance Stocks—
the '
Act of 1934 unprincipal concern,
addition to enforcement, relates
with
preciation
of
curities ^xenange
cier
(less valuation of de-
provisions
See
-Business
Securities Act of 1933 and tile Se- '
initely. These systems will comprise more than 160 .companies
assets
the
Equity Oil
*1
important
Unlike
41
_
Regular Feature*
As We
responsibilitjes today is the regulation under
the 1935 Act 0f the financing of
registered holding company sys-J
terns. During the 12 monthsended
jUne 30, 19o6, registered noiding
companies and their subsidiaries
sola to the public and to financial
institutions 43 new issues of securities
totalling
$565
million,
Tnis represented 22% of the total
volume of $2.5 billion of longUrm financing completed in that
period by ail companies in the
electric and gas utility and gas
pipeline industries of our country,
miS6ipn's
"Blind Optimism**! (Boxed)
;
Direct
PHILADELPHIA
wires to
I-
DENVER
SALT LAKE CITY
•
4
The Commercial and Financial Chronicle
(164)
there thing
note, however, is that when
Growing Life Stock
has
life insurance
take
to
one
insurance
life
of
never
1939, Charles E. Becker acquired
share
million
103
Ame
n s
dent
of The
life
i
r
have
ance
Co.
c a
a
policy cf some
there is
lence,
$437 bil¬
ovc r
of life
lion
i
n c e
sura
n
the
States;
sales
ance
taled
bil¬
$33
for
first 6
U.
Cobleigh
1956.
riod
in
note
on
topic,
which to
the
Life,
most
companies in
the
publicly
to
be
can
that
of
some
these
life
con
thought
we've
that
about
the
a
We won't
$1,135,385,687.
this
figure
had
million
The
to
Five
had
In
from
$193.4
$375.7 million, up 95%.
real meat for stockholders
tacular performance in t
is the
five-year advance in capital
gain department.
and
as
Aetna
and
in
spec¬
e cap'tal
Companies such
all
(like
has turned
stock
are
Franklin)
in
any
but
at
life
insurance
in
force,
the
over
16
broad
some
assortment
life,
group
and
with
the
largest
106'
a
has
25
(bid)
bid
10th)
—
Mot
legal
last
50%
be¬
Franklin,
a
sales
is
frankly, it
made
never
sales
29,
of
case
I
NEW
8
is about
for
a
For
in
Latest
up-1o-date
in
insurance
of
40
i
Many
as
in
substantial
,
sheltered
nave
profit
issue
force
heretofore.
v.»-, +
tax
been
I
I
8
I
I
4/As
small
to
be
is
Blue
are
in
1856
yp.rs
do
3
Chins
for
quite
the
to
Franklin
important
an
key
to
March
on
(Just
bought
have
low for 8Is!)
payout
has,
king
a
funds.
$28
from
million
this
been
"melons"
July
consti¬
considerable
retrospect, but
tor
is
growth
here,
in
(which
were
historic
Franklin?
these
\vould like to
not
in
Hkt
solace
cash
gain
profitable to companies
All this,
of
this
premium
coupled with
and
50
covers
inclusive
ing
of
giving
profitable)
family policies
wide
and
vogue;
buyer
a
a
can
dis¬
American
Life
Great
Underwriters
you
interesting
"A."
(There's
"C"
stock which carries the vote. More
custom
better (whole¬
90%
In
gain¬
are
the
all
of
this
is
owned
by
conclusion, Franklin appears
to be
life
an
extraordinarily energetic
company.
It is
sales minded
sale) rate if he buys $20,000, than
and profit minded and stockholder
$2,000,
minded.
tends
margins.
partial
fact
debits,
that
makes
to
profit
narrow
Against these debits,
however,
lies
ever
or
the
inflation
creeping
our
necessary
larger
life
Its directors
active
one,
in
the
fairs: and most of them
selves
substantial
dressing
its
from
save
are
af¬
them¬
stockholders.
Franklin has not gone
dow
all,
are
company's
other
in for win¬
board
with
ty¬
winner, if he is to leave his bride
coons
and brood
prominent personalities in public
come
in
a
comfortable
event
of
his
one
intrigue
more
situation
you.
living in¬
premature
affairs
life
if
note,
has
There's
this
to
holding
a
service.
to
a
man,
or
It's
by, for, and of
fessional life insurance
to
begun
public
or
company
industries,
men.
a
pro¬
And,
they seem to know how
sell!
Shelby Cullom Davis & Co.
Members New York Stock Exchange
Underwriters and
CORPORATE
mortality
a
was
again
have
over
this
that, but Franklin
of
1927.
WILLIAM STREET, NEW YORK 38, N. Y,
Telephone BEekman 3-0626
"IN
since
THE HEART OF
Teletype NY 1-384
•
THE INSURANCE DISTRICT"
sizable
cash
would
surprising
if
be
It
itself
resources
not
is
and merge
over
itself, smaller companies.
it
BONDS
uniquely
company
equipped to take
has
MUNICIPAL
the end of 1958.
only
sort
110
should
$3 billion of insurance
force by
AND
Serving Dealers and Institutions
suggests
and
year
in
Oldest
Specialists (with Predecessor Firm) in
one-third
expected,
Dealers
INSURANCE STOCKS
income,
particularly
Franklin
at
Franklin Life Insurance Co,
some
point offered its shareholders the
right
to
subscribe
on
to
additional
attractive terms.
Bought—Sold—Quoted
One
a
Edwin L. Tatro
Life
Direct
Teletype: NY 1-3430
Telephone
BALTIMORE—BOSTON—HARTFORD:
Company
Enterprise
784*
f
Stocks
growth
Company
BROADWAY, NEW YORK 4, N. Y.
Telephone: DIgby 4-2420
Insurance
.
'
companies instead
and Institutions.
Investors
th- remarkable record of the
and
that
life
insurance
stocks
last 10 years than even the
big
and
General
Electric.
Fresh
cluPont
earnings ratiosof
in
count
Franklin,
an
sales
making.
valuation
per
at
we
The nice thing to
percentage
life
a
it
than
(and less
that Franklin is going to do very
dis¬
only 50c
on
acquire
$900,
Mr. Becker.)
cost
Stocks.
what
unto
insui-
worth above
that if you like
unit basis) is leaping ahead; many
can
but
year
experience of less than
in
are
you can
low
observe that for the
17%,
up
Nobody
absolutely,
quarter
know
t *c
Group
Franklin
12%,; and investment income 20%,.
of
each
Now nine shares
Can this historic rate
and!' this
ti ese
stocks.
maintain
markets
in the stocks of
Specialists in Bank
and Insurance Stocks CHR-7-n
St., New York 4, N. Y.
Teletype:
NY
Tel.:
DIgby 4-7485
'£'V'WZXWt&V-'//AW//.-: vpwx-jow-v*
Sold
-
Quoted
MEMBERS
MEMBERS
NEW
YORK
AMERICAN
STOCK
STOCK
EXCHANGE
\
EXCHANGE
The
first boston
CORPORATION
Address
-
Laird, Bissell & Meeds
1-4170
Print)
Company Stocks
Bought
companies in this field.
Name
(Please
Life
leading
Ralph B. Leonard & Company, Inc.
the
insur¬
companies
in
in share prices be continued from
first
share of class A.
owns
for
going to ask, "What about
the future?"
of
Franklin
around $650—which would suggest
life
the
Competition is in¬
departure from this earth.
"savvy" inves¬
any
of
are
(very low cost and far less
Just
This may all sound very well
shares
shares ouG
American
buy Great American A
in
the past five years.
common
meager
alone
common
Great
yet
of insurance coverage for each bread¬
size
have
source
1932;
Use this comparison to
spot underpriced and overvalued life insurance
stocks.
It
plainly indicates several stocks very attractive now.
For your copy, send SI with
coupon.
25 Broad
as
plowback of earnings into capital
and
in
in
rather
earnings
Individual
industry
profitable
the
Life,
force!
1952
permitted
a
example, there
50%,
These
tribution
last
Insurance
more
against
Aetna
in
cash
stock divi¬
50%,
share in 1956).
including
over
,
lite
well
eight times
could
you
Comparative Analysis
investors
far
almost
Franklin at its
We
I
I
8
It
and
I
22
insurance
The
has
$100)
for
much
For
American
of Franklin
industry.
50
Invaluable
making
opportunities
i
24,000
think,
zoomed.
stockholders
has
WHAT OPPORTUNITIES NOW?
i
I
the
(July
1948;
50 LIFE INSURANCE STOCKS
i
I
around
aw¬
number
Franklin (with
now
above
13,000
over
the
a
dividend
1953;
in
1955.
tute
big
very
25%
100%,
but, quite
a
stock
well
novelty
no
50%)
a
1944;
little clarification. The
company is 73 years old
its
Not
dend
reserve
and
the
(bid).
written
This declaration of
effort, exclusively in the writing
of ordinary life and
annuities.
in
is
stock dividend to sharehold¬
was
needs,
has
stockholders
in
gain
ers.
so
cializing, with concentrated
concentration
91
is
there
and
shareholders.
This
to
this
as
stock life insurance
company spe¬
emphasis
figure,
surplus funds,
From March 31, 1952 to March 31,
insurance
Franklin
of
1957, Franklin Life stock advanced
contracts
health.
and
Franklin.
come
of
industrial
accident
and
net
write
really done
have
instance, light
were
This
from
companies
remarkable
the total
whacking
a
dynamic behind the capital stock.
than Franklin.
Now
1956—up
years
and
last
31, 1951 to $38,750,000
31,
capital,
performance in growth of income,
earnings
Dec.
200%.
none
sparkling
more
surplus funds from $12 mil¬
lion at Dec.
com¬
the
fully well, and
answer
Life, Travelers, Lincoln,
Virginia
panies
perfect1}'
a
apprehended
in
exciting growth tabulations
turned
ance
72,498 class A
standing.
nine
heretofore
Great
about
observations
those
growth in net earnings and assets
the
these
have
away
called
Underwriters, Inc., with only
tempered by certain
be
field.
to
admitted
span,
increased
years
grown
110%>.
five-year
assets
as
doubt
no
ance
share,
past
Life
Thursday, July 11, 1957
.
company
crazy
the
enthusiasm
entering
back all the
go
the
what has been going on here, and
of the results racked
some
of
same
(2)
mi
p
a
Now
have
per
of
an
would
They'd be
face
more
analysed
such
achievements of their company.
shied
Who really
which
$2,885,000,000—up
are
stockholder ami
a
really
At the 1951 year-end, there
later
life insurance companies in which
you
They're
of
envy
the
insurance in force in Franklin
was
sone
(1) that Dere
be
here.
Life
70%- of the life insurance busi less,
there are still millions of people
who don't know
the
in
to
stock,
rather
insurance
added
is
business.
stock)
built
way—we'll .just cite the past five
companies (w.th
held
is
over-enthused
years.
minded"
whole
Because mutual
no
it
has
he
love to subscribe.
not
in
stockholders
creasing and
course,
good
since
"sales
^excel¬
"positive thinkers" about
it
look at
up
pe¬
a
pa
sales "moxie" at Franklin,, take
introduce; today's
Franklin
of
one
is
industry.
gotten
over
same
this
And
the
year—
30%
up
the
but
that
him
Lest
months
this
of
Ira
Insur¬
life insurance.
to¬
lion
Life
salesman,
a
himself,
group of
and life insur¬
Franklin
echelon of sales executives
an
around
the
force -in
United
up
J."H
Presi¬
became
He has since proved not
only to be
sort;
and
control
the
—
expressed for this company should
buyers for
strictly stock
have
certain
appears
event
larger number
the
on
increased,
or
outstanding shares.
While
splash in the,industry until about from life
17
years
ago.
In December of
investors
stopping to
think how really big this protec¬
tive institution is. Right now over
granted,
continued
been
income
tend
We
tor
at
stock, before the split,
afterward,
of the fastest growing stock
companies—The Franklin Life Insurance Com¬
pany of Springfield, Illinois.
appraisal of
dividend
stock
a
old
the
on
Economist
Enterprise
been
Franklin, the cash rate per share
IRA U. COBLEIGII
By
A non-actuarial
has
.
.
15 l(ROAI)
ST., NEW YORK 5
Telephone DIghy 4-1515
120
BROADWAY,
Telephone:
Bell
NEW
YORK
BArclay
5,
N.
7-3500
Teletype —NY 1-1248-49
(L. A. Gibbs, Manager Trading Dept.)
Specialists in Bank Stocks
Y.
i
Volume
1S6
Number 5654
.
Chronicle
The Commercial, and Financial
.
.
(165)
This is aptly set forth
lessness.
the
of
letter
current
in
Mail"; Governed by-God; Free¬
Bcrnstein-
Observations
.
.
.
the
price
the
astute.
vestment
By A. WILFRED MAY
"Conditions
follows:
funds.
can
An instance
of
even
of
is the
good
chief; f reedom and Security in
of the Chalclees; The Right
to Work; The Dut r to Interpose
Ur
Many fund managers con¬
buy common stocks, with
to be sure, at prices
The
the
ratio of high-grade corporate bond
persisting
bull market in
money"—with
zooming to all-time highs
face
stocks
midst
a
decline
of
bonds
lows
to
and
to
new
wide
important
this
Does
un¬
per¬
formance
dicate
in¬
new
a
of distrust
era
fixed-in¬
of
come
i
p r
i
p a
securities,
%
p.
I
or a
permanently
changed atti¬
/
tude
Wilfred
A.
d-
a n
-
n c
c
May
o
toward
m
in
stocks
o
n
e in-
speculative stock
to
a j drastic
just
market
vulnerable
a
break?
current
The
diver¬
stock-bond
is quite unprecedented here
abroad.
Traditionally it has
gence
and
been assumed that the greater
higher yield
that from
than
their
tailing
market
strated
in
rise
a
in
drastic
where
Switzerland,
the
bank rate
touched
a
and
tax
on
Industrial
125
1955,
much
care
or
Minnesota
today's
doesn't
much, what
of
i t y
Mining
IBM
or
The market rises have
the
be
averaged
investment
an
out;
economic
basic
Perhaps
the answer,
adjustment,
term
the
by
the
yield
from
rise
leading
4.41%
news
by
Moody's
War.
Stocks
sued
outlook for
is
Had
a
a
bear
institutional and
people's
bonds
Dow
the
Jones
are
30
Averages;
.,
•
i
,
{
choosing
The
yielding
now
to
the
uated
and
ment
18, Md.—cloth—$5.
long-
Association
ticles
and related to bonds.
on
"Let
.
Anyone
the
Tariffs
on
and
the
of
Street, New York, N. Y,
en¬
ascribed
a
lessen¬
II
llikblocks..."
$y.yy.
other techniques
media
other
for
instalment
system
applied
Our extensive retail
coverage
buying
the
has also accent¬
stock
appraisal care¬
frequently enables
us to
place
large blocks of securities without
||
disturbing existing
|f
f
pleasure in announcing that
markets. Through our
experienced Trading Depart¬
ment,
street
in 23 convenient offices
coast-to-coast, we deal in a
W&i
William D. Byrne
long jist of industrial, utility,
railroad, insurance and
WBSHM 'v I
Edmund C. Byrne
natural gas
Wc
transmission stocks.
also active
arc
in
Roger S. Phelps
\
our
firm
as
General Partners
10Eas#5 Str%
f!7 Wall $WWt(5)
(17)
75 Federal Stre#
200 Berkeley
The entire staff of
Tell
and
Phelps, Inc.
chicago,
%
providence,». 1.
#
our
/
reading, w
SAN
will
join
organization
our
scrmon, pa.
iii.
FRAtjfdlSCO, CAlfF.
albany/n. y.
/
alto0na, pa.
/
MfrlMORE.ltfb.
Lowellj&uj
PlIKIJPS, FENN & CO;
5
4
July 9,1957.
<
los angeles,
calif.
to meet
Mr. Alfred
;•
wc
will do
them. Address
J. Stalker, Manager
Department.
TAUlfrON^ASS.
WHITE
PLAIFfl,
N. V.
s-barrIpa.
WORCESTER.
%.
fASS.
&'
Kidder, Peabody
V
london, england
Members
&
Co.
FOUNDED
1865
oj New 1 ork Stock Exchange, American Stock Exchange,
Boston Stock
V
best
inquiries.
trading
sprIgfield/Wa^:.,
Corespondents in 54 cities.
'
your
Dealer Relations
,
j
■
us
requirements and
(1)
Street (16)
philadelphia, pa.
Byrne
foreign dollar bonds.
We welcome your
|
newport, r.
4
'<S=SOLA
New York,
issues and
%JKVH BEDFORD, MASS. %
i n£wargc%'
york, n. y.
have been admitted to
preferred
stocks, bank and insurance
J?
Trade
Bar
past,
in a
movement
Or¬
General Agree¬
is
TzzzzzzzzzzzL TzzzzzzTzzzzzzzzzzzzzzzzzzmmmzzzzmmzzzzzzzzzzzzzzzzzzzzzm
We take
in
Par¬
Coopera¬
of
—
the
City of New York, 42 West 44th
ar¬
Deliver
>.•»•<•
»
tion and
the Con¬
Proposed
Tirade
money.
stock
the
in
stocks
by Paul Van Zeeland—«The
Johns Hopkins Press, Baltimore
for
related with the broadening use of
tor
than
the
in
ganization
on
American
of
.49 to .31.
The 40
ticipation
tion
quantitative and qualitative
per se
of
improving the
lessening of the Cola
it would have been
it and Barron's 10
highest grade bonds declined from
spread between
more
stitutionality
European Integration — Edited bv
C. Grove Haines with introduc¬
appreciation of the equity share, i'leohian. July 1957 containing
both
New York 1, N. Y.—$1
nue,
Supplementary Report
16, N. Y.—cloth—$4.
report as stemming
to the same cause "since
ing
the
and
Research,
from the Kremlin's new machina¬
by 17%, and since Jan¬
to
Econmic
tions in supposedly
similarly, the rises in
of .the bond categories
4.53%
of
261 Madison Avenue, New York
yield
namely near-term re¬
followed
Bureau
a
compromise is
a
international tension en¬
tailing reduced government de¬
have been 35%,, 33%;, and 42%>;
fense
spending
of course
is a
while
the
yield on stocks has depression harbinger."
Also
declined by 26%. The persistence
contributing to
the deof this phenomenon is shown in emphasizing of the yield on
to¬
last week's record, when during day's
investor's
common
stock
the five sessions the yield on the purchase
is the ever-increasing
Dow Jones Industrials fell further degree
of Blue
Chip-ism, cor¬
uary
and
wrought
in
change
permanent
concept?
factors
techniques
investing
been far
Thus,
the
"explained"
advances.
week's
exempts
Common
can
outrunning the business indicators
with the news rationalized to fit
than 80%,
140%; while the yield on
has declined
v._50c.
yielding.
off
high grade corporate liens by
50%,
very
his
yield, of equities.
But,
in
the postwar interval
January, 1946 the yield on
our long-term Government bonds
on
m u n
know,
since
has increased by no less
legitimate investment,
as
policy.
Surely
investing c o m
rise in
liquidation, and
dirty word like
increasingly pro¬
a
is
turn
claimed
en¬
between their
Only last
again
demon¬
this
was
The aim for "capital
gains'' avoiding
long-term price trends.
month
to
bull market.
yield is an
determinant of their
correlation
affirmative
the
stock-buying
from
clearly speculative attributes of a
relative
attractiveness;
is
there
support
obligation and that in any
event
comparative
yields is down to 0.95%,
the
a
debtor
important
stock
Then
risk
entitles the investor in equities to
a
NT
son.
Invitation to Sweden—Lady Shep-
—
bracing their higher valuation, or
perhaps
in
come
the costs cf
so
Why?
periodically
—
implications.
orthodox
ucation, Inc., Irvington-Qii-Hud-
high.
too
arc
truly
—
harbors
and
are
pard — Pitman Publishing Cor¬
the funds American Capitalism: Its Promise
poration, New York, N. Y. —
and Accomplishment—Louis 1VI.
perpetual or accountability is
a
$4.50.
figure only surpassed at the
Hacker—D. Van Ncstrand Com¬
relegated to the distant future,
neak of 1929's saturnalia of specu¬
Japan Company Directory, 1957—
and the standard of living of. the
pany, Inc., 120 Alexander Street^
lation.
(with Who's Who in Japanese
fund
demands the ownership of
Princeton, N. J.—paper—$1.25.
Business) — The Oriental Econ¬
What Explanation?
certain items. Is this thinking so Career Preview
New magazine
omist,
Nihombashi, Cbuo - ku,
What is the explanation for this
very
far removed from that of
to
be
issued monthly
during
Tokyo, Japan—cloth—$5.
present phenomenon? Of course,
Johnny's and Mary's when they buy
school year to guide high school National
Stay-in-School
Cam¬
there is the public's recognition—
on
the basis of the monthly pavseniors in choosing a career in
paign—Handbook for Communi¬
belatedly—of the inflation threat, ments and minimize
price?
For
business and industry — Enter¬
ties—U. S. Department of Labor,
functioning doubly as a discour¬ both the future is expected
to
prise
Publications,
11
North
341 Ninth Avenue, New York 1,
ager to fixed interest and capital
ban out the present."
Wacker Drive, Chicago 6, 111.—
N. Y.—15c
investment, and
as
a
stimulant
Emphasis
on
"safety"
and
$1 per year..
to
Personnel
Management and the
inflation-hedging stocks.
But "growth"
surely have invalidated, Ceramic
Tool, Symposium Papers,
Professional Employee—A bib¬
another and temporary pro-equity
at least temporarily, the former
—American Society of Tool En¬
motivation seems to have entered,
liography—Industrial Relations
scientific findings (by such repu¬
gineers, 10700 Puritan, Detroit
in
the
Section,
Princeton University,
souring of potential table analysts as Benjamin Gra¬
38, Mich.—$6 (individual papers,
bond
buyers
by
the
terrific ham and O. K. Burrell) that the
Princeton, N. J.—Paper—20c
$1 each).
shrinkages on their existing port¬ investor will
Plastic Tooling Symposium Papers
pay more for earn¬
Cultural Heritage of the Swedish
folios with which they have be¬
—American Society of Tool En¬
ings disbursed than undisbursed
come
burdened
Immigrant—Selected references
emotionally
as in dividends.
gineers, 10700 Puritan, Detroit
O.
Fritiof Ander
well as statistically.
Augustana
As a result,
What
market
38, Mich.—$10 (individual pa¬
prognosis
shall
former avid buyers
Library Publications, Rock Is¬
of Triple-A we make from all this? A collapse
pers $1 each).
State tax exempt obligations on a
land, 111.
price-wise
and
disillusionment
Safety Subjects: _A discussion of
2%
basis
now
shy away from
Demand and Supply of Scientific
accident causes and costs, plant
with
just one more instance of
them at a 3.10i% yield.
Personnel—David M. Blank and
inspection, etc.—U. S. Depart¬
"New Era" foolishness? Or have
George J.
Stigler — National
ment of Labor, 341 Ninth Ave¬
Speculative Excrescence's
"hard
of
—Foundation for Economic Ed¬
names
they know
Money will
PERFORMANCE
Shall the
Colleges?;
Only for Mis¬
Our
UN—Competent
in¬
tinue to
THE SENSATIONAL STOCK-BOND
System;
Inherit
Needy
institutional
certain
Price
Best;
blunt
consciousness
Manifesto; Socialism at Its
dom
Macaulay, inc., investment counsel,
as
5
Exchange and Midwest Stock Exchange
,
—v.K/1/iHue
Trends in the
Money Market
Reserve System
the
about
the important
assays
money
market. Mr. Thomas
schools, hospitals and
of
not for the creation
in the volume of
Economic
serious
years
t
to
has
plished
from
strains,
stresses,
and
Nor has it been accom¬
without
public
policies
dangers.
re¬
restraint
markable in
directed
its results and
its persistence.
there has been
an encouraging movement toward
the
freeing of markets and of
have
private enterprise from the strict
extended
riod
of
toward
ex¬
that
controls
an
perity with
relatively full
stimulants
utilization of
diminished,
f
demands
goods and
o r
Not
for
have
Although
supplies.
extended has
amount of credit
and of postwar
Governmental
supports in naralso
have
sectors
although
sectors
all
the
been
lot
more
a
30
years ago.
the
of
economy
Agricul-.
passing through the
inevitable process of adjustment
from
the
upsets of war,
when
production was curtailed in some
expanded
at
once.
ture has been
against
ing
available
and
remain than existed
money press-
Thomas
Woodlie!
ticular
and
resources
characterized
periods of war
readjustment.
pe¬
pros¬
ex¬
on
although
pansion,
surprising in
perienced
an
tne
ex¬
lead
by rela¬
Nature
and
year
Current Boom
of
growing needs, has in the past
or
more
undergone
some
curtailment.
These
various
ad¬
Underlying
characteristics
of justments, rather than being the^
of
more
recent developments are familiar. cause
widespread cur*
The world has undertaken arma¬ tailments, have instead released
ment programs of vast magnitude resources for meeting other de¬
in
relation
to
total
resources.
mands and
In
on
balance
have
been
elements of stability.
addition
ambitious
development
This process of rolling readjust¬
projects for expanding productive
capacity have been assumed and ment at a high level appears to
carried out. At the
volume
of
time the
same
consumption
represented a
and
brief
adjustment
the filling of some of
moderate
degree, with unemployment con¬ following
tinuing at a low level. Throughout, the war-created shortages.
The
the general levels of employment, downturn of
1953, it seems evident
income, and output have been in retrospect, was entirely due to
remarkably free from wide varia¬ the unexpected, sudden, and sharp
tion.
Fears
and
predictions
curtailment
of
Management
Association,
defense
expendi¬
tures, and not to any basic mal¬
adjustments. The smallness of the
*An address by Mr. Thomas before the
Management Conference of the
General
American
in
over-all
New
York City, June 5, 1957.
large
decline in the face of
a
reduction
in
so
defense
the
cut
big
To
name
a
ment
Thought?
people "food chains"
good
networks
many
with
stores
super-market giants—
from
outrun' the
and
opportunity in
a
number of smaller companies that
example, here
are
tomorrow.
few that
a
make markets in,
we
or
find markets for—
to
flow
of
week
current
market
for the
a
flour¬
influences af¬
generally
the
are
incentive
diminished
and
ported.
current
expected
to
save
spend is increased.
Prices
further in the absence of a
responding
increase
year
all
these
these
people
policies,
many
think, borrowers
are being prevented from obtain¬
ing financing for projects that are
credit-worthy and needed for ex¬
panding productivity of the econ¬
omy or for vital aspects of public
welfare. It is often suggested that
if Federal Reserve policies were
changed,
we
could
have
homes, accelerated con¬
new
hospitals,
facilities,
schools,
other community
ability
for
would-be
to finance purchases
of
buyers
be
can
the
at
rate
which
at
manufactured,
progress
the
on
II.
new construction put in place rose seasonally in
$4,400,000,000, for the month the Government re¬
This topped the previous June record of $4,300,000,000 set a
outlays
also
showed
8%
an
climb
the
over
all types
previous
of construction
Private, construction last month totaled $3,000,000,000
under the
than
1%
or
year-earlier total.
Public
construction,
on the other hand, reached a new June
at $1,300,000,000 or 107c above May and 7% higher
year earlier.
high this
a
For
year
the
first six months of this year, the
report showed,
private outlays for construction totaled $15,300,000,000, or less than
1-7© under
a year
11% rise
an
.
ago.
over
Major steel
-
a
Public construction totaled $6,200,000,000
.
year ago.
,
or
.v.
this week
users
were
evaluating the effect of the
products, according to "The Iron
Age," < national-metalworking weekly. Some industries will wait
awhile before making price changes. Others are set to act
quickly.
steel
;
price increase
on
their
own
An "Iron Age" check of pace-setters
/
turned up the following:
users
Machine Tools: It's
among
the bigger steel
V
safe guess that tools will
a
cost more, but
probably be only part of the reason. "Steel prices,"
builder, "aren't the only thing that's gone up by a long
one
more
highway
that is needed to make
possible the use of all these cars,
and finally sharper increases in
plant
and
equipment
additions
and improvements so as to ex¬
pand
the
productivity
of
our
program
>'"
•'•.'/
•
Warehouses:
General
increases of
be
expected.
Larger
smaller outfits to follow.
can
by
general
a
labor
$8 to $9
warehouses
-
will
ton for steel
per
set
the
pattern
for
:'t"
Farm Equipment: The base steel
cost- increase
price boost will be added to
in
third
quarter.
Prices
will
probably go up about 5%, possibly mere—assuming sales hold
at the present rate.
up
Appliances: No rule of thumb. Most appliance makers have
already boosted prices in advance of steel price increases and in
anticipation of cost increases in their own plants. Selected price
boosts
be expected in individual lines.
can
Automotive:
models
of
a
Best
car.
bet:
Prices
of
introduced.
are
new
Prices
will
1958.cars
Steel
The auto
advanced styling
apd
automobiles
War
The report observed that almost
shared in the MajMo-June rjse.
shot."
tight
belief that
to
seem
World
steel prices will
of
of
to
record
a
June
cor-/
the Federal Reserve
System are solely responsible for
the existing Scarcity of credit. Be¬
cause
since
month.
about
the
refusal
a
seasonally adjusted basis, the departments stated, firstoutlays reached an annual rate of nearly $46,800,000,000. This
compared with actual expenditures of $46,100,000,000 for the full
year 1956.
is
Role of the Federal Reserve
express
scale; the
impose a
to
Russian
On
rise
v
complaints
later
a
ago.
says
Many
Powers
half
interest
demands,
and
national
a
previous high reported for the first half of last year.
in 7 output.
rates rise.
rests
on
Western
For the first half this year, the
joint report of the United
States Departments of Commerce and Labor
noted that construc¬
tion outlays amounted to a record
$21,500,000,000 or 3% above the
to
Credit demands increase, but with
loanable
funds
unavailable
to
meet
A-bomb
to
strike
the
of
to
,
incentive
the
union
Spending for
output, has been reflected in ris ¬
ing
prices.
Wages
have
risen
rise,
political situation in U. S. A. include: the
labor
a
proposal
dictatorship actions; the results of inflation rampant in this
today, and the never-ending Cold War that has cursed
June to
buying, based in part on credit
expansion and the increased use
of past
savings, as well as the
growth in income from current
prices
and
the
halt
the world
savings. With productive facilities
fully utilized, further growth in
they
rapid
eoast-lo-coast.
investors though, "food chains" spell invest¬
might become the by-words of
For
mean
week
and
of
10-month
world,
struction of vitally needed
most
the
financial
rejection
h£s produced a
level of investment,, which
record
has
more
For
peaks for 1957
outlook
country
only
Food for
believe that the business
business investment,
added to outlays under develop¬
ment schemes inaugurated by a
number of governments through-
policies
1949
from
spiral
wage
private
money
of
new
Many favorite indicators
reasonably consider the further testing and building of H-bombs
for uncivilized warfare; Nikita Khrushchev's autocratic intentions
recession
have generally been util¬
ized close to the fullest practicable
five weeks.
prosperity, " stability and growth
that this country enjoyed turned
into a boom.
The high level of
ups
sources
in
future
replaced the short cycles of
and down considered charac¬
teristic
of
other
periods.
The
Re¬
Business Failures
During the past two years or
there has been growing dis¬
cussion of inflationary threats in
this- and
other
countries.. The
more,
have
ex¬
scope.
panded in amount and
has
Index
improved and is more assured for
six months to come.
prosperous
Aside
a
worlf frequently appears.
Production
fecting commodities, securities, real estate and merchandise, some
of
the
outstanding factors which could drastically affect the
Threats
a widespread
in¬ has had to adjust to more sus¬
These price and wage rises have
growing apprecia¬ tainable levels. Housing construc¬ become sufficiently widespread to
tion of the nature of these prob¬ tion, stimulated by governmentally furnish,
unmistakable
evidence
lems, but some misunderstanding sponsored liberal credit terms as that the mechanics of a spiral of
and misinterpretation of the forces well as by cumulative shortages inflation
was
at
work.
When
at
trading
business leaders to
ishing and
been
terest in and
Auto
second half of 1957 has
tively full utilization of resources
—particularly with the stimulus
of heavy armament expenditures.
least for areas and stimulated in others. partly as a result of the ability
Demands for clothing and other of powerful labor organizations in
a period without active war—and
inflationary price pressures have consumer goods have experienced a situation of full employment to
been
short
but
not
severe
evident, there have been various
obtain contracts that provide not
complaints
of
undue
credit cycles. The automobile industry only increases in wage rates and
scarcity. This situation has pre¬ after a year or more of record fringe benefits but also cost-ofsented problems and a challenge sales and output, stimulated by living
and
other
acceleration
for monetary and fiscal policies. the rapid easing of credit terms, clauses.
\
There has
Price
On Monday, July 8, stock prices moved to
past records—at
ceeded
Trade
Commodity Price Index
Industry
the heaviest
in
eco¬
.
free
We
and
the
part
of
marked
Inflationary
iThis state of affairs has not been
followed
a
pattern that
have
been
failed
are
situation
eventuate.
—
recent
have
downturn
consequences
nomic
savings held out of current income.
developments in this
These
natural
homes at this time the need is
bank money, but for an increase
and to a considerable
extent throughout the world*-— in
country
in
prices.
new
more
Retail
of Trade
Food
tendency toward rising costs and
concludes that to meet such unsatisfied credit demand sectors
as
Production
Electric Output
munity wishes to undertake and,
on
the other hand, the persistent
creation, and the role of banks and the Federal
Reserve, in detecting trends in the
1907
11,
Carloadings
State
have
of
the
all
situation
current
the one hand, the diffi¬
obtaining financing for
projects that the com¬
on
culties
relationship of savings and investments, credit
aspects of the
and monetary
adviser
economic
Steel
in
been,
bank's
central
Our
inursaay, July
.
The
the whole helpful, adjustments
parlicular sectors, the principal
complaints that have been raised
on
Economic Adviser
of Governors of the Federal
.
spending attests to the inherent
strength of the economy.
Aside from the moderate, and
By WOODLIEF THOMAS*
Board
.
prices
will
be set just before new
only one factor in pricing
labor costs are going up.
are
industry's own
but disguised
rise,
in
"greater
value
for
and engineering."
The mills' announced average increase of $6
per ton is borne
out
The
per
by "The Iron Age's" revised Finished Steel Composite price.
new "Iron
Age" Composite base price figures out to $119.34
ton, compared with the previous $113.40. This represent an in¬
crease
of
$5.94
per
ton.
Meanwhile, .the mills
®
are
still
counting
first signs of definite upturn in demand for
on
August for the
sheet, strip, and other
so-called "easy" products.
They figure the auto companies will be
coming through with heavier tonnage orders. Also, they expect
Continued
on
page
42
economy.
Alpha Beta Food Markets, Inc.
Markets, Inc.
Century Food Markets Co.
A. J. Bayless
Colonial
Stores, Inc.
Food
Mart, Inc.
Lucky Stores, Inc.
Mayfair Markets
Penn Fruit Company, Inc.
Purity Stores
Fisher Brothers Co.
Red Owl
serve
meet
Stores, Inc.
Just call
or
write
could
all
It
Reserve
money.
Marketing Department
eral
70
Pierce, Fenner
PINE STREET
&
Beane
NEW YORK 5, N. Y.
Offices in 112 Cities
is
an
one
human
is
true
has
the
flow
wants
that
at
the
power to create
This function of the Fed¬
of
to
what
influence
we
call
EGGS
the
money
indispensable and important
for the
operation of the eco¬
nomic system. But there are limits
to the powers of
monetary
COFFEE
Your
OATS
-
page
28
COMMODITIES
RYE
RED
FOR
BIG
SOY BEANS
S.
B.
OIL
PROFITS?
COTTON
CROSS
SUGAR
WOOL
*
Write
and
for
particulars
Sample
'
I sue
POTATOES
must carry on
I
STOCK SCIENCE
DEPT.14
144
on
.
ONIONS
policy
Continued
IN
RUBBER
any
Federal
INTERESTED
CORN
of
the
Reserve
creation
Merrill Lynch,
increase
goods and services sufficiently to
time.
Inquiries?
WHEAT
It would be a fine world indeed,
if, by merely opening wider the
spigot of credit, the Federal Re¬
'
Beacon
\
Avx, Jersey City, N. J.
Volume
186
Number
5654
.
.
The Commercial and Financial Chronicle
.
(167)
■r
■\
&
No
two
rate,
about, it,
ways
you get more
The Dime. For, in
save at
addition
to
for
your money
when
BEFORE YOU
you
the highest bank dividend
The Dime offers you the most liberal method of paying
dividends. You get
quarterly,
SAVE ANOTHER DOLLAR
dividends from day of deposit, compounded
dollar of balance, with extra dividend days
every
on every
ASK YOURSELF
month. Dime depositors have received this increased dividend
of 314% since
April 1st. No bank in New York State pays more.
.
THESE QUESTIONS!
i
Open your Dime Savings Account today. Get more for your
money.
Start with as little as $5, as much as $10,000 in an In¬
•
Is it 3% that doesn't
am
Account—up to $20,000 in a Joint or .Trust Account.
Religious, and charitable organizations may deposit unlimited
amounts
What
•
dividual
and
The Dime's
earn
big dividend
on every
the postage
or
use
the coupon
below
to
bank-by-mail. We
both ways—furnish self-addressed envelopes for your
compounded only semi¬
Do I have to wait until the first of the
•
the first of the quarter to earn
Do I get
•
•
JULY'S EXTRA DIVIDEND DAYS
dividends
on every
Do I get dividends on every
Remember...there
Money deposited during the first 10 business days
earn
dividends
Are
or
July will
I save?
money
begin earning from
annually?
pay
convenience.
of
the
even
day of deposit?
dollar.
•
Come in
I earning on
are
month
dividends?
dollar of deposit?
I
dollar of balance?
all kinds of
places to
and just as many ways of figuring the
dividends. The way dividends are figured
save
dividends from July 1st.
makes
a
big difference in what you get on your
savings.
SAVE AT THE DIME WHERE
YOU CAN BE
SURE YOU'RE GETTING THE
1
MOST FOR YOUR MONEY!
I
SAVINGS BANK OF BROOKLYN
■A
I
i
ASSETS NEARLY A BILLION DOLLARS
Member Federal
1
Deposit Insurance Corporation
<■:<
ffi
r
Mail this coupon to any
office of The Dime Savings Bank of Brooklyn
I enclose
i
deposit of $
(Minimum deposit $5—Maximum de¬
posit $10,000 in Individual Accounts; $20,000 in Trust or Joint Accounts.)
i
□ In my name alone
Please open a
Savings Account—
□ In my name in trust
i
s
for
□ In my name jointly with
n
I
)
□
MR.
□
MRS.
BENSONHURST
...
□
MISS
—
Addrtts.
—
I
86th
Street
and
19th
Avenue
and Coney Island Avenue
Mermaid Ave. and W. 17th St.
Ave. J.
FLATBUSH
Print Name In Full
i
Fulton Street and DeKalb Ave.
DOWNTOWN
(
CONEY ISLAND...
I
i
City, Zone No., State.
Cash should bo sont
registered mail.
98-CFC-^J|
♦3%
a
year
regular plus an extra at the rate of
V*% • year
7
8
The Commercial and Financial Chronicle
(168)
Stock
Science—Commodities
for
profits—sample
quest—Stock Science, Dept. 14,
Dealer-Broker Investment
on
copy
Tax
Exempt
Bond
survey—Hals^y,
Market—Mid-year
Stuart
to
Recommendations & Literature
Ten
It is
understood that the firms mentioned
send interested
to
will
he
Co., Inc., 123 South La Salle Street, Chicago 90, 111.
Largest Banks
Bankers Trust
securities business.
a
are'Myron Solomon, Pres¬
Treasurer;
and
ident
at 27
City,
York
Lois
and
Solomon, Secretary and Treasurer.
in New York
City
pleased
parties the following literature:
in
engage
has
Inc.
offices
New
Street,
Officers
&
with
formed
William
Co.,
&
Taylor
Scott,
been
City, N. J.
Taylor Co.
Form Scott,
re¬
Beacon Avenue, Jersey
144
Thursday, July 11, 1957
.
.
.
Quarterly figures
—
—
Company, 16 Wall Street, New York 15, N. Y.
With A. W. Renkert & Co.
(Special to The Financial Chronicle)
Uranium—Analysis with particular reference to Cog Minerals
(No. 28)—Comments on University of
Atomic Letter
Michigan
Report about the beneficial use of atomic energy in medicine,
increased
reports
earnings
African uranium
South
dividends
and
Dept.
C.,
Phillips and Topp
Bnrnham
View
Street,
Washington
W.,
N.
Monthly investment letter
—
What Price Mergers?—Discussion in current issue of "The Ex¬
C.
articles
D.
7,
and
cents per copy;
on
$1
per
Also in the
year.
"Peoples Capitalism," "Habitual
issue
same
Industry—Analysis of outlook—Harris, Upham & Co.,
Dividend Boos¬
ters, Can-Making Industry," etc.
5, N. Y.
Stocks—Data
'
Continental
Can
Company
—
on
45
com¬
-
Japan.
2-Chome,
Also in the
139 East
Flagler
circular
same
brief analyses of KLM Royal
are
lines, Philip Morris, Inc.,
pany.
Southwestern Public
Dutch Air¬
Service
Co.,
MIAMI, Fla.—Laurence J. Lennarts has been
Sills
of
Ward,
Chiyoda
Tokyo,
added
the
to
staff
Company, Ingraham
Building.
With Baron, Black
Continental Can Corp.—Analysis—Bacbe & Co., 36 Wall Street,
New York
and
"
■■■'("
"
With Sills and Co.
Pine Street, New York 15, N. Y.
Otemaehi,
5, N: Y. "Also available
BEVERLY
bulletins
are
(Special to The Financial Chronicle)
on
Lone Star
HILLS, Calif.—Don¬
ald S. Mart has been added
a
study of the Japanese
to the
Electric Wire & Cable Industry.
Cement, North American Life Insurance Co. of Chicago and
staff
Colorado Fuel
bulletin is
same
Co., Inc.,
(Special to The Financial Chronicle)
Also in the
,
Japanese Coal Industry—Analysis—The Daiwa Securities Com¬
C,
&
Amott, Baker & Co.,
—
First National City Bank of New York, and Penn Fruit Com¬
Ltd.,
(Special to The Financial Chronicle)
MIAMI. Fla.—Henry R. Carpen¬
ter and Nicholas G. Morris have
become affiliated with A. M. Kid¬
Analysis
Growth of the World Petroleum Industry—Study—The
Chase Manhattan Bank, 13
Two With A. M. Kidder
der
Incorporated, 150 Pioadway, New York 38, N. Y.
panies—The First Boston Corporation, 15 Broad Street, New
pany,
with
Street.
Fire & Casualty Insurance Company
Future
&
York City. He was formerly
Daniel F. Rice & Co
are
Also avail¬
Broadway, Ne\y York 5, N. Y.
York
Wesley E. Mes¬
associated with
Co.. Inc., of New
—
become
has
W. Benkert
change'—The Exchange, II Wal Street, New York 5, N. Y.—
is current Foreign Letter.
Chemical
120
3, 111.
10
Burnham
—
Company, 15 Broad Street, New York 5, N. Y.
able
sing
A.
Inc.,
Fund,
Mutual
Development
Inc.—Atomic
1033—30th
MIAMI, Fla.
companies and comments on Aero¬
jet-General Corp., Daystrom, Inc., N. V.
Industries,
of
its shares
on
Corp.—Leason & Co., Inc.. 39 South La Salle Street, Chicago
Lawrence, Incorporated, 253 North
Iron.
&
of
Baron,
Black,
Kolb
and
Canon Drive.
Japanese Stocks
Current, information
—
Company of New York,
Yamaichi Securities
—
Inc.,^111 Broadway, New York 7,
New York.
Harris
Seybold Company and Intertype Corporation—Bulletin
York
Market
Review—Study—Harris, Upham & Co., 120 Broadway,
New
York
5, N. Y.
More Research
...
or
on
"research-rich
companies" with particular reference to American Research
&
Development Corp.,
Electronic
6, N. Y.
/
-
•••■*
-
-
*
'
'
,
.(Special to Tiif Financial Chronicle)
'
CHICAGO,
Jefferson
Electric
Company—Report—Loewi &
Co.,
Incorpo¬
Specialty
Collins Radio, Electronic
List
Industries
Bulletin
—
South
Pont, Homsey & Company, 31
Milk Street, Boston 9, Mass.
of America,
—
Data
—
Metal
available
data
are
are
Monsanto Chemical Co.
discussions of the Money Market and Federal Land Bank
Bonds.
New York
New
City Bank Stocks—Second quarterly analysis of 13
York
City Bank Stocks—Laird, Bissell
&
Memorandum
—
Meeds,
120
Talmage & Co., Ill
Bank
showing
an
up-to-date
com¬
Gas
Co.—-Memorandum—Doyle, O'Connor
Northwest
Production—Report—Western
Corp.,
ports
Delhi
and
National
4.
market
performance
over
Averages, both
a
13-year
to
as
period
—
Quotation Bureau, Inc., 46 Front Street, New York
N. Y.
Rights
Bulletin
—
—
Georgeson & Co., 52 Wall
Street, New York 5, N. Y.
on
Three
Stales
Natural
Gas,
Taylor
are
Pacific
Airmotive
tional
Oil,
and
Co.—Memorandum—William
&
Purolator Products,
—
C.
.
.
Southern Pacific
Now
Available
—
Highlights #33
'More Research
...
"The United
Or Else
alone"
pelling.
more
.
.
.
It
The
for research
that
...
&.
Service, recently said:
Stock
&
Co.,
Edward
—
with
now
Saunders,
Terminal
Tower
Exchange.
With Far well,
Honey & Co.,
is
Newman
—
Herzfeld &
Chapman
(Special to The Financial Chronicle)
Chapman
111.
now
Co.,
&
—
Richard
with
208
T.
Farwell,
South
La
Salle Street, members of the New
Co., Incorporated,
and
Midwest
Stock
Ex¬
changes.
P.
McDermott &
TRADING MARKETS
Bonds—Circular—Rauscher,
FLORIDA
Improvement District
SECURITIES
Pierce & Co., Inc., Milam
Bank, Insurance
new
Companies,
Industrials
of
industry
or
this
statement
must
spend
is
com¬
more
DEPENDABLE MARKETS
and
else.
Northwest Production
Invest in
Three States Natural Gas
y
Y.
Florida's
Golden
Delhi-Taylor Oil
TRADING
Triangle
DEPARTMENT-
TELETYPE MM51
mm
Special Reports
Security Dealers Association
on
Request
I
I
is
Building, San Antonio 5, Tex.
Trinity Place, New York 6, N. Y.
HAnover 2-2400
Saunders, Stiver
Street, Chicago 3, 111.
Company—Analysis—Peter
TROSTER, SINGER & CO.
T4
Boulevard.
Lees
Big Piney Oil & Gas
Members: N.
F.
West
the result of research made in 1957
as
significance
means
C.
141
CLEVELAND, Ohio
A.
York
Travis County, Texas Water Control
and
ft
States will spend §20 billion in 1962 for
plant and equipment
with
Company,
Co., 42 Broadway, New York 4, N. Y.
No. 10
W. Alton Jones, Chairman of Cities
and
CHICAGO,
Memorandum
Inc.—Analysis—Blair
105 South La Salle
.
135
Building, members of the Midwest
Co., Na¬
Building, Detroit 26, Mich.
Philadelphia & Reading Corp.
Only.
Co.,
(Special to The Financial Chronicle)
Stiver
Corp.—Memorandum—Prescott
affiliated
now
Joins
1
Stern, 30 Broad Street, New York 4, N. Y.
For Financial Institutions
&
City Bank Building, Cleveland 14, Ohio.
Chemical
Buhl
is
Childs
re¬
Big Piney Oil & Gas.
Park
Shareowners'
&
Jackson
Securities
Jones
yield
Harriman
W.
Brown
CHICAGO, 111.—James J. Stead,
Jr.
Also available
Averages and the 35 over-the-counter industrial stocks
with
(Special to The Financial Chronicle)
Building, Dallas 1, Tex.
Northern Illinois
Exchange Place, Jersey City 2, N. J.
in the National Quotation Bureau
Charles
—
now
Joins C. F. Childs
parison between the listed industrial stocks used in the Dow-
used
was
South La Salle Street.
Co.—Memorandum—Carothers & Co., Mercantile
Co., 135 South La Salle Street, Chicago 3, 111.
Broadway., New York 5, N. Y.
Over-tlie-C ounter Index—Folder
111.
is
Brothers
—
He
38
Broadway, Now York 6, N. Y.
Nemaha Oil
.
CHICAGO,
Woodford
letter
same
Street.
Dearborn
E.
to the
With Brown Bros.
on
Sterling Drug, Inc.
Dallas, Dallas, Tex. Also in the
aded
Company,
formerly with Harriznan Ripley &
Co., Inc.
Joseph Faroll & Co., 29
Also
Municipal Market—Discussion in current "Bond Letter"—First
National Bank in
Walter
—
&
(Special to The Financial Chronicle)
Broadway, New York 6, N. Y.
Hydrides Inc. and Vitro Corporation of America.
Baxter
of
Associates,
McKesson & Bobbins, Inc.
Co., Lithium Corp.
du
111.
Knowles HI has been
Staff
rated, 225 East Mason Street, Milwaukee 2, Wis.
Else—Highlights No. 33
Baxter Adds to Staff
—Mellott, Thomsen, Pitney. Rowan & Co., 29 Broadway, New
Western Securities Corp.
One
Teletypes NY 1-376-377-378
DEMPSEY TEDELER SI CO.
Exchange Place, Jersey City, N.J.
Telephone HEnderson 2-1000
Open-end
ohone to N. Y. C. HA 2-0185
M
ALFRED D. LAURENCE
&
COMPANY
INVEST/HUNT SlCVUTItS
|
I
I
201 S.E. 1st Ave. Miami, Fla.
Phone: Miami, FRanklin 3-7716
Number 5654
186
Volume
.
.The Commercial and Financial
.
is
Labor Outlook
the labor
cycle to other cycles, characterizes labor as a commodity sub¬
jected to the
same
well. There
in selection, and treatment
the
Ltlvice
future.
Just
to June
now
the
Graduates
new
as
graduates arc
to be
a
natural
"sitting
in the
be fairly
They will be
watched most carefully, with the
idea of a big weeding out after
their
job is
the
point
in arguing as to the
however
a
revolving—the
market
cycle,
not all! Workers have
are
worker. Wages,
comfortable place to work.
Furthermore, the location of the
plant
labor is a com¬
will
not
or
expense
office often demands the
of
an
automobile.
-
.
present
But it will surely
be followed
by a period when
employers will "clean house," trim
down their personnel,? and keep
only the most efficient. This ap¬
plies to both men and women.
.
find
June
it
the
graduates
to
easy
or
who
get jobs
now
will
tailboard of the cart" in about five
Therefore parents, as well
years.
York
York
New
1
Co., 44 Wall
&
Grimm
New
will
August
Boge and George Kranz to
nership.
Tracy,
with
Inc.,
*
Rogers
South' La
105
members
a
become as¬
Taylor,
Exchange.
formerly
of
the
Midwest
Mr. O'Brien
partner
With Dean Witter
W.
part¬
Distributors, Inc.
PORTLAND,
Oreg.
—
Dean
Witter
&
Co.,
Building.
dries up.
Look at Birth Rates
birth rates
running
been
had
S.
U.
the
17
about
rti
per
_
World
AWfll
8
'lOELt"^
4
lowcr thrftlf1
HHHHk'WHI
1,
t0oi\XEH$
thousand. Just
before
,i
companied by
This
*
ac-
scarcity to
of
due
a
Roger w. Babson
was
.men
the
with
draft,
of
surplus
a
normal
greatly cur¬
tailed, the war created an exces¬
sive demand for labor for war in¬
dustries. Therefore, labor adjusted
While
workers.
women
manufacturing
was
itself fairly well.
.
The
the
had
war
but
to return from
May, 1945 and babies
arrive in 1946. This
began
boys
in
Europe
closings,
two
began
to
means
that
babies
is
Other Bonds and Securities
ning
and
Interest Earned hut not Collected
Furniture and Fixtures
especially in the ele¬
mentary grades. As the women
who went to work during the war
dropping
they are
older,
market. This ac¬
counts in part, for the shortage
of
labor,
the increased wages,
and the inefficiency of much of
the la nor.
Every employer com¬
the
of
job
plains about it; but I see
that can now be done.
Customers
Liability—Letters of Credit.
Other Resources
babies
of
crop
this
of
oldest
the
LIABILITIES
July 1, 1957
Reserves—Taxes, Interest and Expenses.....
Interest Collected but not Earned
Dividend Payment
Letters of Credit
1,508,684.00
1,273,199.58
1,194,516.54
Issued
Capital Funds:
$ 5,000,000.00
10,000,000.00
Capital Stock
Surplus
notuing
1,419,477.37
Undivided Profits
$225,167,427.40
is now under
12
of age, no relief can be ex¬
pected (without a severe business
depression) for at least five years.
The
situation is being tinkered
by
16,419,477.37
postwar
Our Trust
Department holds in excess
years
further
$204,571,549.91
200,000.00
Deposits
Outlook?
What About the
As
(All Offices)...
Real Estate
crop c£
12 years of
under
crowded,
become
...
Discounts
Loans and
The birth rate is now run¬
around 24.2 per thousand
the
schools
are
becoming
age.
out
Securities
Federal Reserve Bank Stock
postwar
the
now
Cash an<l Due from Banks
U. S. Government
Trust
Properties which are not
of $175,000,000.00 in Personal
included in this statement.
minimum
with
still
wage
and other labor legislation.
meantime, business is pros¬
In the
perous
and production is
close to
that
and the
labor is abnormally
all-time high. This means
an
the
supply of labor is low
for
demand
high.
repeat that
I
business
—
Since
barring a
CITIZENS
FIDELITY
depression—I see no re¬
lief until after
1858
1960.
Labor-saving Machinery
As
a
result of the above
tions, there is
labor-saving
kinds.
all
This
forms
condi¬
BANK & TRUST CO.
constant demand for
all
especially applies to
machinery
office
of
of
LOUISVILLE
labor-saving
much talk about
that is the running
devjces. We hear
automation,
factory or
office automatically
with very few
employees; but this
of
a
MEMBER FEDERAL
DEPOSIT INSURANCE CORPORATION
with
Equitable
temporarily just as a dam
height of a stream.
But the dam does not destroy the
water; sooner or later the water
flows over the dam, or the stream
in
>
Paul A.
Egger has become connected
raise the
Let Us
J.
(Special to The Financial Chronicle)
wages
During the 'thirties,
was
John
in
modity depending on supply and
demand.
Labor unions can raise
can
&
Salle
O'Brien & Co.
on
Mr. Kranz is an officer
of Putnam Fund
S.
Street,
Exchange,
admit
David
—
Exchange, has
sociated
City,' members of the
Stock
111.
O'Brien, member of the Midwest
Stock
Stock
G. Kranz ft A. Boge
be Aug.
be "sitting on the
(Special to The Financial Chronicle)
CHICAGO,
Street,
the stock
money
rate
cycle.'
Taylor, Rogers Fim
few years more.
as
housing
the
and
of jobs
out
same
9
D. S. O'Brien With
"darling" makes good. The present
"honeymoon" will continue for a
Every reader should remember
pride and self-respect. They like cycle,
reasonable
hours,
good clothes, Many
and
the
that the labor cycle is constantly
•••-..
■
should realize
labor situation
continue
unless
their
June graduates,
that
Grimm ft Go. to Admit
1960.
efficiency of the
of
secure.
to
buck this
wage
next five years and
during
little
employees, and offers advice to
June graduates.
it or not,
seems
attempting
forces of sup¬
ply will be low and demand high
—barring a depression — until
after 1960. Recommends greater
Like
in
- average wage for given work in a
given community. There is no use
ply and demand as other com¬
modities, and contends the sup¬
care
time
driver's seat." It
and requires considerable capital will
easy for
most of
investment.
this year's graduates to get posi¬
The
most
practical means of tions. Moreover, many of them
bridging the next five years is to will be paid more than they are
take greater care in the selection worth. This is no reason for them
6f employees and to treat them to
be careless or to think that
BABSON
Babsoit compares
Mr.
some
Changing to automation is both a
slow
and- an expensive
process
Until 1960
By ROGER W.
for
(169)
Chronicle
FEDERAL RESERVE SYSTEM
10
(170)
•
The Commercial and Financial Chronicle
.
should outstrip consumption more
For Two Financial Problems
priate
generally instead of primarily in
anced
autos, housing, textiles, and some
consumer
durables — then they
become destructive. Unless
worked
side
eliminated
Federal Tax Reduction Program
mid-1958.
i
Professor of Economics, University of
Minnesota
tax
cuts
in¬
or
cf
e r
would
and
It
Although the over-all economic
situation
determines whether a
potent
anti-recessionary weapon, but also to provide
adjustments to alleviate the tremendous strain on state and
local limited tax resources. Contrasting the solicitous treat¬
budget surplus is destructive or
constructive, the way in which it
cope
ment tax-wise of
action.
and
potent
over
present
tiv
a
surplus before
deciding
whether
aid
state
government; or (5) an
alternative that may be ruled out
of
order in the present atmos¬
and
tax
cuts;
second,
to
means
by
which
skillfully
arrangements
or
structured tax cuts to
ing
a
basis
sound
for
(4) to provide Federal aids, shar¬
it
provides
Con¬
local
phere,
Federal
expand
to
im¬
prove its fis¬
cal
timing
impounded
to
t hr
released
the
pro¬
grams.
gress
can
"on
of
shelf"
ductions
Je..
tive
corporate
excise
certain
when
ernment.
..
■
•...
•
...
.
To know that the budget is
in
recession
of
.
the
face
of
And just
destructive
are
so
inflation
run¬
in
nomic growth.
What does
scope
tell
are
the
pace
Joint
P.
by
Economic
Heller be¬
Policy,
Washington,
Professor
Fiscal
on
Committee,
C., June 5, 1957.
of
or
a
eco¬
income and tax revenues
without a corresponding growth
in government spending, it is like¬
ly to become a retarding, destruc¬
of
timing
this
on
score
with
respect to our present cash sur¬
plus of about $3 billion? Present
readings clearly indicate that sur¬
now are constructive, that
they help hold inflation in check.
But if our economic pace should
Slacken
if productive capacity
—
and
tax
refer
tain
time
strong
created
excise
e.g
taxe^,
sheil"
works
of tax
the
like
often
At the Close of Business
on
June 28,1957
Cash and Due from Banks
United States Government Securities....
20,227,925.54
State and
14,385,738.13
Municipal Securities
.........
Other Securities
8,197,076.19
the
721,626.20
Stocks
as
made
Bonds and
Bank
2,016,630.27
Mortgages
Loans and Discounts
21,164,590.91
.
Building
Other Assets
tax
cuts
"on-the-shelf"
threat¬
inflation
economic recession
a
slow¬
growth
faced
or
607,404.11
down
773,506.55
.
the
country,
Congress could pull
the
tax
off
$80,889,343.61
Ofa dr'/fYfbd
7
~
$ 2,420,000.00
6,000,000.00
Capital
Surplus
Undivided Profits
632,112.75
Deferred Credits
Reserves for Taxes and
87,636.74
Expenses
126,752.60
Deposits
70.686,890.43
$80,889,343.61
come
down
let
on
If Congress were to
a
of
to
it
would
tax cuts put on the shelf.
example, it would very likely
the
For
a
putting
such
higher
agenda than
now
taxes
the
the
scheduled
most
tax-cutting
ones
to
which
drop.
difficult,
on
transporta¬
the
on
those
as
and
and
are
Perhaps
yet
the
Citablished 18 89
FULTON STREET at the
corner
of COURT SQUARE
In the Heart of the Civic Center,
Brooklyn
Member federal Deposit insurance Corporation
of
most
urgent, segment of the tax
reduction package is in
vidual
income
though
a
tax
of
emphasis
on
consumption
of investment
fiscal
of
actions
growth.
address
myseii
namely,
•lion
seem
to
the indi¬
field.
Even
cut would be inappro¬
have
dramatic
state
-
World
,
lost
postwar
local
War
tax.
re-
to
the
of
three
tax
tradi¬
adjustment
improvement,
administration
a
—
fourth
state
and
criterion,
maximum
contribu-
and, local fiscal
the
tax
bases
to
ernments.
,
':X
directly at
readily
which
slate
are
and
Examples
; tional tax cuts"
local
of
gov¬
"direc¬
the excises
are
taxes
sight
of
equitv
and
economic
criteria, this much can be said:
if they must
be used, why not
give priority in their use to gov¬
ernments which have
only limited
access to better sources?
Cuts in
the lower brackets of the individ¬
ual income tax also have a con¬
the
resurgence
under
of
siderable
Sincespend¬
the
directional
hand,
one
tax
than doubled
they
base
either
lion).
taxes
(from $13 to $33 bil¬
In the last four years, state-
local
spending has jumped by an
average of $3 billion each year, in
quality.
directly
and
On
expand
the
of
revenues
state
in
or
the
and
local
sales
lower brackets of
municipal income taxes.
or
But
increases
state
in
should
one
mistake
not
make
the
of
equating the tax-re¬
averaging less than $2 billion an-"
ducing capacity of the Federal,
nualry.
The percentage increase
Government
in
with the tax-absorb¬
state-local spending during the
four-year
period
has
been
ing capacity of state-local govern¬
more
ment.
than
The
Federal
double the rate of increase
in Federal civilian
spending. •
■ '
has
So, by almost any index we
choose,
state - local
government
Government
jurisdiction,
emerges as
of
one
lient, "growth industries" since the
war.
It supplies the kind of prod¬
ucts demanded by a rapidly ex¬
panding population in
relative peace
a
period of
and absolute pros¬
People
want
and
more
better education, m^+ai and r»u--^
ical
health
water
systems, recreational facil¬
ities, and the like.
states
of
is
roads,
programs,
are
the
Localities and
traditional
sources
supply of these products.
small
suffering
and
face
wonder
severe
the
that
they
growing
necessity
So it
vast
ering.
more
ebul¬
most
our
I
on
amusements, cigarettes, and local
telephone service. Though these
the, taxes
hardly qualify as "good""
SiaiL-u>c
federal
-
This contribution will be
great¬
est when' it is beamed
stabil¬
state-local
with
-
ca-
ing and debt have more than 20-odd states whose income taxes
tripled (with expenditures rising allow deduction of Federal in¬
from $12Yi billion to $40 billion" come taxes
in
arriving at state
and
debt from $16 to over $50
taxable
income.
On
the
other,
billion), and
taxes
have
more
they leave room for rate increases
cunufcst
_
ex¬
as
government.
II,
of
Limited Tax Base Avai'able
-
preoccupation
budget woes, we
Federal
"spend" budget-
e
national
our
with
„
versus
for
me
fi-
de¬
a
earnestly sug¬
Administration and
cf
the
to
P^al
pacity.
I should like to
to
mu¬
may
economic
ease
compliance
in any tax leeway that de¬
velops at the Federal level.
different set of priorities
excise tax reductions, perhaps, perity.
prefer
in
follow such
undoubtedly
improve the product mix
policy,
tion
KINGS COUNTY
or
to counteract it.
communications
TRUST COMPANY
shelf
This would
want
Unearned Discount and Other
the
the specified
greatly shorten
the
lag
between
an
economic
downturn and positive tax action
them
date.
935,951,09
General Reserve
economic
cuts
and
and
First, if
the form
criteria
—equity,
Con¬
of
control
the
that
tional
reductions
ca
in
one
to
Congress add
Tax Adjustments
ity and
fall
the cuts could be postponed,
kept on the shelf, as they have
been in 1955, 1956 and 1957.
But
of
debt
reduction;
tax
made
gest
a
state
on
resources?
is
duetions,
stake
ens,
if
of
expansion
shelf."
When
lost
question
focus
an
reductions has much to com¬
it.
major
tight
Congress do in the
alleviate the tremen¬
surpluses
has
1954—shows that in each
pansion
re¬
.The conscious development of a
tax
nancial
cision
after
for
can
field to
dous strain
No doubt, my colleagues on this
other panels will deal with
Reductions"
the
broader program of
mend
What
tax
and
periodically unless Congress
pushes them back up. We might
think of them, therefore, as "tax
cuts on the half
tax
But public construc¬
full impact of
nicipals.
tlus
with
up
the
available
off
$12,794,845.71
come
preference
over
Nature
en¬
largely escape the
high interest rates and
money.
tax-exempt
Con¬
poll
the
tax-
fact, doubly so because
income groups seem to be
reaching the saturation point in
their holdings of
gress in the next election.
"public
urged
Tax
while
shelf
voter
were
analogy is, of course, not
complete since the public works
projects had
to
be pulled off
the
again
three
In
erf ^encUlien
Gallup
by
These
upper
when they clearly
the
saved
money, in
the party in power when the cuts
,
being
businesses.
funds
tion feels
since World War II—in 1945. 1948
The
talement
tight
so
our-
anti-depression measure.
"On-the-Shelf
benefited
favored
twice vetoing a ^billion tax reduct on; ana
(4) tne hisahy of
Tvs
+
a-orl
much
ductions
spondingly
to
taxpayer
contradict
interest-
or
government.
the life of the 5-year amor¬
tization program; one
may assume
that this much or more
is corre¬
re¬
"shelf"
a
to
(1)
the
over
over
of
and
reliefs
few weeks ago that the
govern¬
will have to
pay out over
$3 billion in additional interest
(3)
long ago, aa President was
unexpectedly
rel elected after
in 1951, the Congress in ef¬
acted
fect
and
and
from
Secretary Humphrey testified just
But there is
evidence
courage
(2)
reduction
the
of the tax increases
some
would win out
pressure.
taxes in the" 15 months
Korea;
not
tax
loans
ment
shelf, politically speaking,
pressure
\
a
in the face of inflation. Polit¬
new
corporate income
Honor
part, from
free
the need, Congress and the
taxpayers accepted $15 billion of
setting automatic expiration dates
for
the
Preferential
has helped business
keep feeding the capital boom
with
internal
funds derived, in
usual
year
government.
to
of them
all
or
givern-
present Federal
tax treatment
saw
stabi¬
to
the
local
-
our
and
monetary policies seem
rigged against the vast pub¬
investment needs of state and
local
expira¬
guard against infla¬
intelligence
"scheduled"
the
cer
on
of fiscal
I
or
ductions-in
thus0
kit
devices.
some
our
argument:
tax
its
tool, to
lization
com-
as
softening economic situa¬
hold
gressional
Congress has, perhaps unknow¬
ingly, added a very useful new
tax
revise
and
considerable
actions. As a
in recent years the
its
matter cf fact,
30
state
fact
pressure of
ical
since
and
June
of
In
to be
lic
drop off the shelf to help
a
inflationary
net
tax
reduction
seems inappropriate at this time,
it may become
appropriate and
necessary next year to keep the
economy on a steady upward path.
Since
economic changes can be
swift
the
test
or
even
Although
very
ment.
tax
note the at¬
the/shelf for another
on
.Timing of Tax Reductions
"automatic"
economic radar-
our
us
defi¬
destructive
needs a stim¬
surpluses
Slackening
for
Subcommittee
as
during infla¬
When the economy
ulant
to
avoid
recession
or
statement
and
position
to
less
It may be argued that personal
income tax cuts could not be kept
Korea), Congress should be on the
alert for methods to improve the
surplus
the
sur¬
deficit is construc¬
face
pluses
"A
fore
"con¬
"destructive"
as a
the
in
tions,
about to run, a sizable
is not a sufficient
advising
the
policy
maker to turn on the green light
for tax reduction. Surpluses, after
all, can be used for many pur-
ning,
basis
a
or
cuts
to
or
tion.
ment,
and
cits
Types of Budget Surpluses
cash
whether it is
or
ulated economy.
i
'
•
of tax
and
shelf
slumps
one may
of
keep up
the Con¬
gressional taxing process tends to
be slow unless it is operating un¬
der
extreme
pressure
(as after
tive
leeway
tion
on
sur¬
overemployment when it serves
as a tranquilizer for an overstim-
that should be
for cuts de¬
velops, with special emphasis on
alleviating
the
intense
fiscal
pressure on state and local gov¬
adjustments
made
form
gains privileges, percent¬
depletion — little weight has
been
given to the hard-pressed
age
of
tax cuts
plus is generated by steady, noninflationary growth
in employ¬
inflation
fight
to
offset
be
unemployment, when it serves to
pump financial plasma back into
the
thinning
economic
blood¬
stream, so a surplus is construc¬
taxes; and, third, to some con¬
siderations bearing on the type of
tax
Just
plus.
and
should
richer
like
tax
on
structive"
Walter
re¬
those scheciuied for the
income
in
depends
the-
-
tax
surplus
a
the
swift
a
the
on
amortization,
capital
time.
year-end forecasts, the
Congress would be in a well-in¬
formed position either to let the
con¬
If|, finally, the
have
tax laws have
our
considerable
very
—e.g., through accelerated depre¬
ciation and
5-year
date.
time
economic stabi¬
in
lization policy.
a
valuable
'
solici¬
tude for private growth industries
tackle
summer,
with the March 31
crop
tive force in the course of time.
Whether
ough a
broader
use
structive force
be
shown
for
By mid-year, Congress
has the current year's budget piclure well in hand and a good line
on
appropriations for the follow¬
ing year.
Moreover, having had
penditures, especially early in the
course of an inflationary develop¬
likely to
could
each year over the next dec-
Yet, although
corporate
this
economic
passing,
tion
prompt tax reduction so that the
of
government demand
won't interrupt economic growth.
it is
then
with
paied
cutback
ment),
gain
weapon
tractions
For example, if it is gen¬
Reserve System; (2) to reduce the
Federal debt held by the public;
prospec-
would
In
'If, in contrast, the surplus is gencrated by inflationary expansion
poses: (1) to fight inflation, most
effectively
by
retiring Federal of revenues (which may outpace
debt in the hands of the Federal the inflationary expansion of ex¬
budget
e
some
fiscal
(3) to provide tax cuts, either for
consumers
or
business, or both;
Character of
economic
to
as
the shelf
the
likely even¬
tuality cf sizable disarmament.
by budget cutting or gut¬
ting, it may well be destructive,
something to be stamped out by
doubling in the rate of increases of state-
My comments will be directed,
first, to the necessity of gauging
not merely the size but also the
Thursday, July 11, 1957
.
ade.
cuts scheduled
reduction
counter
erated
Federal civilian spending, Professor Heller
Federal tax-monetary policies "seem to be
rigged against the vast public investment needs of state and
local governments."
spending
asserts
,
may provide
the appropriate
generated
clue
private growth industries, and in view of past
four year dramatic
local
is
lion
be
of wonting out the terms
thereby
check.
Nationally known tax expert advocates development of a tax
reduction program to not only provide an "on-the-shelf," swift
bal¬
a
could
put on
with
tax
Congress
tax
a
and
side
excise
of
terms
reduction
out
the job
spending, or offset by an
monetary
policy, they
hold economic growth "in
creased
e a s
by
the
now,
tax
by
and
would
By WALTER W. 1IELLER*
i
.
.
,
It has broader geographical
better-financed
and
efficient tax
freedom
fancied
-
are
of raising
their tax rates by at least $1 bil-
from
and
the
administration,
fears
both
—
real—of
intercity or
interstate
migration of industry
and wealth, and other
advantages.
It may
well be that
we
prefer to
give
up
some
equity and effi¬
ciency in taxation in exchange for
more
self-sufficient, vigorous, and
responsible
state-local
our
government
level.
Up
to
choice may be for
brant
state-local
preference to
system.
pains
advantages in tax-gath¬
But
a
point,
more
vi¬
government
in
more
the
the
at
a
a
virtuous tax
scope
for
this
kind of exchange is bound to be
rather limited under modern con¬
ditions.
Leaving aside Federal aids;
we
;
Number 5654
186
Volume
brought to
are
consideration
careful
give
should
Congress
collections.
tax
MAPLEWOOD,
Co.
at
has
71
been
Park
N.
J.—Roth &
formed with
Avenue
to
FT.
offices
conduct
LAUDERDALE,
securities
business.
Partners
Aim, Kane, Rogers
—
(Special to The Financial Chronicle)
George C. Mynchenberg III is now
Pierce, Fenner
has
erns
become
associated
.
with
are
11
Citrus Sees. Opens
Fla.—Citrus
ORLANDO,
rities
CHICAGO, 111.—Louis C. Seav¬
a
with Merrill Lynch,
to
Fla.
;
Louis C. Seaverns Joins
Fla.
<Special to The Financial Chronicle)
Federal
direct feedback of
a
With Merrill Lynch in
'
behalf
on
(171)
Chronicle
Roth & Co. Formed
and localities, name¬
of the states
ly,
The Commercial and Financial
.
.
second possible
a
budget leeway
of
use
.
Secu¬
Company has been formed
with offices at
Drive
to
1216 East Colonial
engage
in
a
securities
lelative
& Beane in the Ft. Lauderdale of¬
Aim, Kane, Rogers & Co., 39 South business. Officers are B. V. SmithJack Rothauser and Alfred Rothrevenue abundance with the states
fice, 1311 East Las Olas Boule¬ La Salle Street. Mr. Seaverns who
ers, President;
W. K. Price III,
auser.
Alfred Rothauser was pre¬
and their subdivisions without at
has been-in the-investment busi¬
vard. Mr. Mynchenberg was prev¬
Vice-President; T. F. Barnes. Jr.,
the
same
time
impairing their
viously
with
Eisele
&
King, iously associated with the firm in ness for many years has recently
autonomy.
Direct sharing of in¬
beeh with Barclay Investment Co. Secretary-Treasurer.
Columbus, Ohio.
Libaire, Stout & Co.
come
taxes would be one possi¬
bility, one that is certainly pref¬
erable to Federal tax credits in
a
tax
field from
which many
states are barred oy
two grounds:
be unwise on
difficult
is
origin
(1)
prob¬
of collections would
origin
to deter¬
DIVIDEND EARNINGS FOR YOU
(2) revenues are heav¬
mine; and
of
in" centers
concentrated
ily
constitutional
Sharing on the basis of
restraints.
ably
its
sharing
of
methods
straight per
not neces¬
sarily tied
to the income fax,
migiit be the easiest and least con¬
troversial method
of putting a
goodly share of Federal budget¬
ary leeway at the disposal of the
wealth and finance. A
YOU SAVE AT THE
capita sharing system,
UNCOM*
states. >
Summary
:
'
foregoing "quick
review
suggests that tax reduction in¬
volves just about as many dilem¬
The
..
hard decisions
My remarks
have been addressed to the
(1)
whether, (2) when, and (3) how,
of tax cuts. My answers, in brief
are: (1) no, not now; (2) put a tax
reduction program on the shelf
for easy and quick action when
the
economy
slackens;
(3)
iir
whatever is done, give the fullest
possible hearing to the financial
plight of state-local governments.
pitfalls, and
mas,
as
increases.
tax
Scott, Bancroft Adds
<
'
Special to The Financial
Chronicle)
"
FRANCISCO, Calif. —
Charles Kosmak has been added
to the staff of Scott, Bancroft &
SAN
Montgomery Street.. -
235
Co.,
Deposits made on or before
15th will
Investment
In
From the
Club of Los Angeles an¬
nual Field Day at the Oakmorit
.Bond
Club,
Country
Glendale.
15
at
Columbine Country
ment at the
(Santa Barbara.
25-27, 1957
Association
Santa Barbara
Meeting at
Biltmore.
We pay
to
SAVE BY MAIL
7-8,1957 (San Francisco, Cal.)
Association of Stock Exchange
Oct.
Firms Board of
ing at Mark
10-11,
Oct.
Governors
1957
Savings Bank
.
.
people save
.
Start with any amount
from $5
Account). Trust, Pension,
Fiduciary, Charitable, and Religious Accounts are
$10,000 ($20,000 in a Joint
Union,
the postage
also invited.
meet¬
Hopkins Hotel.
just two of the reasons why so many
office most convenient to you.
Investment Bankers
Fall
begins
dividends. And in July, you have
make deposits that wjH earn dividends from
wherethe highest hank rate
regularly paid for more than 90 years.
in and open your Savings Account at The Lincoln
Come
Gal.)
are
The Lincoln
has been
Club.
Sept.
days to
extra
These
Mountain Group of IBA
summer
account, your money
you open your
July T st.
Denver-Rocky
annual
frolic and golf tourna¬
of
Club
Bond
day
earning The Lincoln's big
1957 (Denver, Colo.)
Aug. 1-2,
July
dividends
Field
Angeles, Calif.)
July 12, 1957 (Los
earn
"Based
USE THIS COUPON
on
the expected
The Lincoln
(Los Angeles.
plus !4% a year
Calif.)
continuation of our present satisfactory
anticipates paying a dividend at
earnings,
the rate of 3% a year
additional for the 3 months beginning
July 1, 1957.
of Stock Exchange
Firms Board of Governors meet¬
Association
ing at
Beverly Hills Hotel.
1957
3-6,
Nov.
(Hot Springs,
National Security Traders
Annual
the Homestead.
ciation
1-6,
Dec.
1957
Va.)
Lincoln
Asso¬
Convention
ai
(Hollywood Beach,
Fla.)
Investment Bankers
Annual
Convention
Hotel.
Association
at Holly¬
first
deposh
wood Beach
April 23-25, 1958 (Houston, Tex.)
Texas Group Investment Bank¬
ers
at
Association annual
the Shamrock Hotel.
June 9-12,
Savings Bank
nBr'9Mo'
meeting
q
Q
FlotbusW
The Life Insurance
y/tlliorrtsburg
and the follov/ing
1958 (Canada)
Investment Dealers'
of Canada
Association
annual convention at
Murray Bay*
Manoir Richelieu,
Quebec.
MAIN
BRIGHTON BEACH.
.
.Brighton Beach Ave. cor.
WILLIAMSBURG.
Oct.
ciation
Annual
the Broadmoor.
Convention
at
$560,000,000
offices in Brooklyn
Broadway and Union Ave. (6)*
Fifth Ave. cor. 75th St. (9)
Coney Island Ave. (35)
OFFICE.
BAY RIDGE
FIATBUSH
•
29-Nov. 3, 1958 (Colorado
Springs, Colo.)
.
National Security Traders Asso¬
and Savings Bank
With Resources of over
,
Church Ave. cor. Nostrand Ave. (26)
.Graham Ave. and Broadway (6)
....
* Postal Zone
Member Federal Deposit Insurance
Corporation
12
The Commercial and Financial Chronicle
(172)
a
g*
m
*
>wi11 have higher taxes.
j
The Economic Outlook and
.
■
aa
'Ssesse
m
_
a
operations, there
upward trend of spending in the various categories and the
in consumer incomes.
Asserts presence of sustaining
,
situations
mate
Over the
are
going to be
that will not app.roxi-
boom
conditions
We
can
five
examination
for
the automobile industry, in both
V
\
W
m
i ac en
'±k
'
>ggi fm
■'i.- t J
;
indica-
ness
tors
The
(2)
sharp rise that
•
has
in
occurred
consumer
(°)
incomes
General
The
,'fent
-n
B.
l.
in pi
(4)
Ra.sc/
con-
Th"
re-
duced availahilitv
,
,
l^sSning factors
and
'y
econ-
assure long-term
cxnrnsion
toi Muij.
economic
i.iuiiuuin.
1
tA
selected
have
the
me
economic
economic
of their
ipm,
Jems
ment
patterns
situation
siijauo i
marketing
marketing
that
business
and
ana
lace
you
because
ucidube
in
managemcinage
own
your
operations.
1
Showing
Continued
C4
.
Strength
by
Business
tion is
of continued strength.
one
spending,
revealed
as
by
first quarter reports on gross national
product
or
expenditure,
than
not
million
at
was
higher
about
was
than
the
for
first quarter last year.
Indeed, for
each of the last
quarters in
seven
the
succession
penditure
of
been
total
ex-
steadily
rate
has
up-
ward.
In
'
'
the
first
personal
tures
at
category
of
there
a
was
In
pstimated
same
at
Anril
146
only
and
J956
n-
for
March
point
one
high
of
such
record
situation.
home
ties.
to
Tight
The
automobile
optimistic
estimates
deal
in
steel
about
is
output and
a^e
de-
existence
ducers'
durable
equipment, and
changes in inventories, there was
annual rate
of
expenditure of
$64.5 billion in the first quarter
this year. This represented a decline of $4 billion from the fourth
quarter of 1956 but
billion
1956.
the
over
a
first
gain of $1.4
quarter of
Expenditures for
struetion
as
were
at
about
for
equipment
notable
picture
the
consame
prevailed throughout 1956,
expenditures
durable
Most
new
in
producers'
were
the
higher,
investment
the fact that business
was
inventories did not change during
°
first
quarter
of this
contrast,
for the
first
year.
quarter
1956, business inventories
t4 1
$4.1
annual
billion, annual Ja
late.
hillinn
rose
PH
*An
Iron
address
and
Related
tion
construction
of
Linas
Credit
expenditures
by Mr. Raistjr before the
Steel,
Non-Ferrous
Metals
activity that will
a
to most of
mean
continuation of boom- condi-
tions.
It
vidual
means
to
businesses
us
in
that
our
we
jndi-
an
annual
rate
a
or
of
6%
$337:5
higher
Consumer
a third pattern that has clearlv
developed
years has
over
been
a
the
past several
rise in consumer
prices.
During the last 12 months
index of consumer prices has
been moving slowly uoward
For
the
0nly
month in the last 12
one
that
was
August
last
1
year'
,.
.
certainly
x
snow
index
at
a
an
expanding
loss
and
decline.
all-time
a
strong bargaining
so
widespread
Continued
po¬
STATEMENT OF CONDITION
June 30, 1957
RESOURCES
Cash
on
Hand and Due from Banks
$ 17,401,311.31
U. S. Government Securities
27.500,473.76
Other Bonds and Securities
2,531.741.22
Loans and Discounts
59,890.608.19
Accrued Interest Receivable
Customers'
I
196,702.56
Liability for Letters of
Credit, and Acceptances
912,339.36
Furniture, Fixtures and Improvements
832,609.93
Other Assets
116.400.44
$109,412,406.97
LIABILITIES
Deposits
$ 98,377,216.39
Unearned Discount
1,015,989.58
Liability for Letters of Credit
and
Acceptances
$1,192,269.96
249.910.40
942,339.36
538,002.41
Other Liabilities
,'
1955
1954
1953
2,188,300.00
Income Debentures
3,750,000.00
Surplus and Undivided Profits 1,749,827.84
Reserves
309.000.00
7,997,127.84
$109,412,406.97
Offices
MANHATTAN
116 Fifth Avenue
Broadway
10%
11%
13%
$1>000-$1,999
12
12
13
13
14
12
13
14
14
16
12
14
17
16
18
14
14
14
16
15
24
22
21
21
17
14
9
8
6
5
5
4
*4
"3
5
~
5
*
15
18
BROOKLYN
1574 Pitkin Avenue
781 Eastern
•
815
100%
1007o
100%
100%
100%
100%
Broadway
Parkway
QUEENS
99-01 Queens Boulevard
Member Federel Deposit Insurance
cases
Broadway
18
>
x
~
144)0
•
318 Grand Street
352 East 149th Street
15
6
•
BRONX
1952
10%
-
521,710.99
Capital Funds:
Capital Stock
Corporation
vocal
page
formerly Modern Industrial Bank
528
1956
~
and
on
Company of New York
,
$3,oOO-$3,999
$4,000-$4,999
$5,000-$7,499
S7,500-$9,999
8
mean
declining activity. Anv abrupt
in the
existing trend is
and
Trust
put
S2,°00-$2,999
OVer_.__
asso¬
confidence, pessimism,
Commercial State Bank
high.
11%
,
9%
are
optimism,
activity.
Moder¬
did
of Consumer
Consumer
1057
so
reversal
ex¬
The
,F"'anCeS in Early 1957' with Final Resulls for Early 1952"58
All
of
„
Preliminary Results of the Federal Reserve Survey
$10,000 and
and
a
'
\
.
and
the
„
denying that,
ately falling prices generally
Reserve for Taxes and Interest
Prices
rising
We
con¬
trend may be,
ciated with confidence,
in Portfolio
M
^ast report, "that for March,
costs.
a
Less: Own Acceptances
year ago.
going to have to deal with moderately rising prices and moderately
wage"
no
Moderately rising prices
this is designed to maintain maxi¬
ex-
by rising wage rates
that personal income in March
are
and
Croup. National Associa¬
Men, Miami Beach, Fla.
the situation suggests
moderate expansion in business
us
its
companied
Rising
My own view is that we face a
sort of middle course, neither serious inflation nor serious deflaa
be
table.)
The expanded
number of jobs in March was ac-
certain sectors.
me
are
long as it lasts, it will serve as a
stimulation to business
activity.
and by a
policy. All
employment and, to the
we
Whatever the ultimate
can
in
and
continued
billion—$19 billion
To
monetary
wav,
1957, personal income
than for March
Under $1,000
responsible for the leveling out in
new
in itself, could give
satisfactory over-all record
for the year even though some
slackening might take place in
a
tion.
55;
accompany
momentum,
Financial Positions
by
1953,
us
of
fl
-
be certain of its that 1957 has
off on a very high level
can
In
Chiefly
we
expenditures
pansionary trend.
reached
thing
in
whole lias
a
of economic achievement and this
one
58;
was
So far in
as
the
ioc«
1952, 51. (See
about the size of the Federal
budget.
Notwithstanding
b this patt^in.
ejtai|1,1,le» °nlv
Those who had annual inco,vms
between $3,000 and $10,000 in 195?
represented 59% of the total. Tn
1956, 1955, and 1954, this percent-
great
a
there
by a reduction
increase in gov¬
,
'
made
the
ernment
bberajized
Ile s"rYey R.f"
twfaf
L
services.
rep-
tion."
economic expansion
an
as
mnnev
+v?-n
^J? ual income,. In 19i56, tn^is
nq7. \
io-oln/i.
]' *n
jqrjj '
'
'
ancl in
earlier in the year, but total output is running along well with
that of last year.
There is also
nervousness
.
nnn
local
situation
and
n money income that
!
T
not yet coming up to some of the
more
more
before.
,
*
money
and
taxes
another
sequences of such
countered
£*SmelVfll}a"ces con~
'd of Governors
Fedeial Reserve system in
particularly troubusinessmen,
state
our
it
nut
experiencing what has been gen¬
erally known as "Greening infla¬
'a^ been achteved. The annual
small
builders,
in
be
*i
so
category of spending
,
always the case, there are
grounds for nervousness in the
existing
taken
People,
years.
ever
im
fe
,c
below
started
investment, which includes spending for new construction, pro-
To
Govern¬
Incomes
that
have
now
As is
continues to be
check to
will
another example, materi¬
raised the cost of the 1957
automobiles above the cost of the
1956 models.
of maximum
consistent with sus¬
growth. Any important
tainable
as
ally
reasonably
preoccupation with
high level perfor¬
over-all monetary
directed toward main¬
;hc ne;L^
r<?"'d reas?""
y <£Tnnn
onlh?
of certain anxieties,
resented by gross private domestic
recent
,^
total, but with
the chief gains being in expenditures for nondurable
goods and
In the
incomes
to spend than
was
December
of
Consumer
wnoie, now nave moie money
7
March.
cline
major
expenditures
tries,
is
jncofcs mat nas. taken
in
whole
a
-mo
voir
a
Unemoloyment was 2,700,decline of 200,000 from
a
in
j3ecn the spectacular upgrading in
for January and Feb-
as
'all-time
the
expendirate
April last year. Rising wages
in the automobile
and steel indus¬
and
are
in
content
consumer
rptie index of industrial production
some
every
programs
all
than
:n
expenditure
policy
in
$81.80
more
to assure
million was at an piace
7
from
qn^r-
tors in the business outlook has
U? dVU'UUU 7™™ A?r.u,a year ago?
year,
annual
an
billion.
*
this
quarter
consumption
were
$275.0
the
forward
level
Average week¬
example,
were
labor.market will be tight enough
Rise
governments, and school authori-
level
price
for
Aoril this year, or
$2.80
buying
beyond his immediate needs.
the
earnings,
manufacturing
certain to be met with
public dis¬
an
justed annual rate. This
but
in
engage
ly
One of the most significant fac-
season-
blesome
billion
because wages rise.
tent that this aim is
achieved, the
higher
moved upward to an all-time high
of $427.0 billion, seasonally ad-
an
disastrous in the past do
At the
so
„
hlgh for the month, and
non nnn
000,
general, the economic situa-
Total
,}y..ancl £:
au_time
ruary
T
In
,fi4 s
the
Cl
,
$24
be
U
tween mid-March and mid April
more
rising costs.
expansionary trend.
''ha.n.in .^f. last cluarter of. 1956'
avtlian emPloymen be-
applicability to the prob-
oi
ot
billion
$3
wages mean
ter this year, business activity has
demonstrated that it is still in an
business indicators registered
gu'ms in the first °luarter- Componsation of employees was at an
of
of
to
mum
Bv its showing in the fmst
^siue from total spending, other
rate
are we can take these
in stride also,
govern-
ments.
somewhat
these
the chances
spending
those lor national security
annual
in the
that tcncl to
omy
of
oi
'
,
,
,
(5)
government
in
were
prices
fumer
—
,.
gains
$84.5 billion,
was
ppward^nove- anci by state and local
m
In 1957,
we may do well indeed to have a
annually. But the economy took
annual rate, as against $78.5 bil- the 1956 downward adjustments in
lio11 for the first Quarter of 1956. the automobile and home building
Tliis category of spending has fields in its stride, and went on to
risen quarter by quarter ever since new highs.
Similar adjustments
mid-1955.
Most notable in the may well be in store in 1957, but
the first quarter
Rather
sion of
million new home starts for in
taining the economy
The total of such expenditures for March the rate was only 880,000
performance
by
ousi-
i
200,000 units from 19o5.
for the first quarter of this year,
of
strength
•
M
Rising
factor suggesting that a fur¬
ther and long continued advance
from what it recorded in 1955.
purchases
of
goods
and
services, there was a further gain
Tim continued
showing
unions.
readily to
higher wages and
fringe benefits.
for
extensions
A
merit
,
demands
an¬
not appear to be imminent.
So it is in the home building certain is our
field. In 1956, new housing starts,
maintaining a
at an estimated preliminary total, mance
by our economy.
particular points of discussion, of expenditures, namely, govern- numbered 1,118,100,.downL almost ment tax and
selected
labor
the money
supply, has thus
given way to the wage-cost infla¬
tion spiral in which
prices rise
because costs rise, and costs rise
was
outlook that I might discuss,
have
can
generally hold
their value, and that declines in
inventory values that have proved
the decline in residential nonfarm construction.
In the third principal category
the busi-
Of the many aspects o£
ncss
for
The usual type of inflation, asso¬
ciated with an
over-rapid expan¬
in
.•
we
same
•
high business activity.
I
long term
continuation of this up¬
ward trend. In manufacturing and
merchandising, this means that
a
We know, for examtime, because of the generax
^
^ we reached the abundance of goods of every type
now
available in
the
highest level of business activity
suppliers'
the merchandiser need
ever attained.
Yet, we know that markets,
economy's indicator, of
restraint., and
by monetary
sition
dollars, it
than forego market opportunities,
bought for $114.70 in March- large industrial organizations will
last year cost him $118.90 in March tend to
keep work stoppages at a
this year, or 3.7% more.
minimum and give in
^
trend, con-
expansionary
s
tinuing gain in consumers' spending power, strengthening of
business confidence through slow price rise, curbing of inflaHon
In
expect that.
Bases conti
expansion.
economic
first quarter
on:
rnnfi-
-v„onc:ntl
.
long-term
assures
dence in future
.fl
terms of
stocks of goods will
rise
factors
^
1957.
^
in
sumer
ticipate
point, out the continued showing of
Bank official
Translated
Thursday, July 11, 1957
,
.
meant that what the average con¬
andrapMtech-
business will prosper in
strength by the principal business indicators, emphasizing tne
r
intensification of
an
p^Palconti'nuous
no^al change.
t
By LLOYD RAISTY*
Central
anticipate
can
.
Rcldtfid Monetary FaCtOIS
Federal Reserve Bank of Atla
We will
.
43
Volume
5C54
Number
1C6
with
practically
in
increase
no
manufacturing manhours.
Counting on Electric Power and
Its Impact Upon the Economy
>
.
Sees
$6
next 14
in the
past 14, sales of electrical energy
can climb 400%
over 1956.
Elec¬
Billion Yearly
Investment Rise
In
total, sales of electric power
will triple
by 1970, reaching a
grand total of around a trillion
Publisher and Editor "Electrical World"
and
half
a
kilowatt
The
hours.
If the electric power con¬
sented.
sumption
.
years:
By FISCHER S. BLACK*
in
grows
the
at the same rate
trical
manufacturers'
could
then
lion
$40
per
R.
National Se¬
which
curities & Re¬
than the
currently
rather
year,
we
■prS,<?1.
portion.
to this
about
search
electric
power
Whereas today they are
for
capital
expansion
around $5 billion per year, their
spending
budgets
demand, increasing capital expansion investments from
$5 billion
a
to $11 billion by 1970, Mr. Black indicates
to electrical manufacturing segment of the
year
what this will
load
Today, almost every American
family is extending its financial
in
resources
order
live
to
increase in
better
factories
tic
cannot
run
total
of
over
in
Avenue.
revenues
energy
78%
from sale
around
served
13%
some
municipal utilities and
tricts.
58-billiqn
over 10%
by
8% by electric
power
by
of the total electrical energy con¬
these utilities, the electrical man¬
sumption for 1956. This consump¬
tion of energy by the Atomic En¬
ufacturing segment of the indus¬
ranges,
tric
elec¬
water
heaters, 3,700,electric
000
refrigerators,
and
400,-
some
electric
000
ergy
not be
family has
Fischer Black
electrical
of life
is
even
onstrated
or
since
workers
way
per
of
Electric clothes dryer
appliances.
have
than
more
lecorded
in
1950
manufacturing
pro-
and
manhours.
During
this period use of electric energy
clearly dem¬
more
later.
duFtion„|!)as. increased production
27% with
only a 7% increase in
by the dynamic growth
of the newer electrical
sales
sales
ac-
cepted tllC
as near as we can
figure, by an equal output from
atomic power plants before 1975,
dishwasheis.
Amer ican
American
replaced,
worker has climbed 37%. Use
electrical
energy
per
worker
achieve>Uaneexpected 'increase■ of
64% in manufacturing production
like
St. Louis
1956.
such
area
$20 billion in sales
These
formerly
sales
by
Si¬
Jr.,
mon
Mr. Crossley
has
Cr^ssiey
ness
(Special to The Financial Chronicle)
ANGELES, Calif.—Robert
Hermanson has joined the staff
of H. L. Jamieson Co.
volt
been
tive
LOS
I.
son,
President.
with
John
and
the
in
investment
sales
went
M. S. Dworkin Opens
represented
approximately 4V2% of the gross
PASSAIC,
(Special to The Financial Chronicle)
S/VN FRANCISCO, Calif,
lace
R.
Hagglund is now
Francis
I.
du
Pont
&
Co.,
Wal-
with
317
Montgomery Street.
Broadway.
Inc.
—
Milton
.
has
KANSAS
CITY,
Queeny-HenJ.on,
national
m demand
Mo.—Mc-
Ir.c.
formed with ofdees at 15C8 Sher- C4th Terrace to engage in a sccurifor their products, we
+
nM.
a
predict that they will account for man Avenue to engage in a se- ties business. Officers are Leo A.
some 6% of ihe Gross National curities business. Officers are McQueeny, President and TreasProduct in 1970, and raise their Herman p Demand, President; urer, and Dorothy M. Hendon,
n„n
,walve£Ume 0f 8816810 ,4° bUUOn John' L.
only conservewhich I have pre-
But these
tive figures
are
Demand,
Vice-President!
This is not ah
heat
and heats in winter is still
summer
somewhat
it
is
of
luxury
a
offer oj these Securities for sale. 7 he offer is
made only by the Prospectus.
which cools in
pump
item,
NEW
ISSUE
but
rapidly
gaining acceptance.
The heat pump not only has the
basic ability to air condition year-
to
provide in winter
each
This
an
output of
B.T.U.'s of heat units
about three
for
$30,000,000
but it also has the ability
round,
electrical
B.T.U.
input.
makes electricity even more
economical for house heating.
"
WASHINGTON WATER
Inexpensive Power
In
the
1956
POWER COMPANY
family
average
spent only about half as much for
electrical
for auto¬
mobiles. They spent $77 for elec¬
trical energy to operate their ap¬
appliances
as
pliances, whereas the cost of
ating
each
a
car was
month.
relatively
costs
This
illustrates
Mortgage Bonds,
4%% Series due 1987
about that much
the
amount that it
better electrically.
small
live
to
First
oper¬
Dated
Due July 1, 1987
July 1, 1957
As average disposable income per
family
around
to
up
goes
$7,000
believe the average
family will spend for appliances
and their electric bills about 6J,2%
by
1970,
we
of
their
income.
Price 100% and accrued interest
in turn,
will
raise their average
annual
use of electricity from about 3,000
kilowatt hours per year per fam¬
ily to 8,000 kilowatt hours.
Of
course many families in St. Louis
use
more
This,
Copies of the Prospectus may be obtained in any State in which this announcement is circulatedfrom only
of the underwriters, including the undersigned, as may lawfully ojfer these securities in such State.
such
than this today.
The commercial customers,
that
department stores,
shopping
centers, and office buildings, have
likewise accepted this all-electric
living as illustrated by their bril¬
liant
lighting
effects,
complete
air conditioning, along with elec¬
is,
tric
White, Weld & Co.
Blyth & Co., Inc.
Kidder, Peabody & Co.
Laurence M. Marks & Co.
cooking, calculating machines,
and
drink
coolers,
and
The First Boston
Allen & Company
Corporation
water
many
expect
smaller-items.
the average
customer
at
two
to
and
By 1970, we
commercial
electricity
Eastman Dillon, Union
a
times
half
today's
Harriman Ripley
Incorporated
The industrial
every
from the
,
use
raw
.
.
.
.
of electricity
production
purpose,
Merrill Lynchr
address
Pierce, Fcnner & Beane
ence
v
ness
on'
by-Mr. Black
Tomorrow's
Planninf,
Salomon Bros. & Hutzler
Smith, Barney & Co.
material pile to the
before the
First National Banfe- its5 St. Louis Confer¬
.
Lehman Brothers
Lazard Frercs & Co.
& Co.
Stone & Webster Securities
•An
Goldman, Sachs & Co.
Glore, Forgan & Co.
consume
average.
for
Securities & Co.
Challenge -to
W57.
>»
-
Busi-
July. 10,1957
Corporation
~
Vice-President and Secretary. Mr.
M- H- Demand, Treasurer;, and McQueeny was formerly
M. L. Demand, Secretary.
Prugh, Combest & Land.
electric space heater sales climbed
The
S.
has been
been formed with offices at 440 East
EVANSTON, 111.—H. P. Demand
Associates,
J.
McQueeny-Hendon Opens
Form Demand & Assoc.
and
N.
Dworkin is conducting a securities business from offices at 64
quadrupled
62%.
in
mutual fund rep-
as a
air-conditioner
nine times, and
up
field
resentative.
six years, room
in
ac¬
busi¬
the South for a number of years.
Recently, he completed six years
IncrRoose- experience
Building.
as
some
was
an¬
J.
Henry
Co., 520 South Grand
He
was
nounced
Joins H. L. Jamieson
suppliers of equipment for
companies in the
Wagner Electric,
Moloney, Jasper Blackburn, Guth,
Kearney, and McCabe - Powers,
try,
Commission installations will
it
Fred¬
with Shearson,
With Francis I. du Pont
#
tric
.870,000
—
and
Tennessee,
dis¬
1,585,000 elec¬
The
issippi
J- Logan & Co.
The electric
kilowatt hours
annually,
&
now
were
were
power companies,
cooperatives, and
Commission has increased its
a
utility
electrical
around
any
to
$330 million
utilities had some 54,000,000 customers. Of the total customers,
them-
ergy
use
and
$8.7 billion in 1956.
families
some
LOS ANGELES, Calif.
Hammiil
of
American
bought
Louis,
erick Prado is
Total
more than they can
build themselves. The Atomic En-
selves
St.
the next five years.
finished product, increases at an
accelerating rate, for the automa-
electrically. For example, in 1956,
in
in
Miss¬
kansas,
' "
(Special to The Financial Chronicle)
a
Louisiana, Ar¬
With Shearson, Hammiil
the
handle
resentative
.
construction
hours.
man
to
as
wholesale rep¬
r
,
,
,
ing $63 million in 1957 for system
whole, the writer opines
that the use of electrical energy per worker must double by
1970 if we are to advise an expected increase of 64% in manu¬
no
Here
.
Union Electric Co. alone is spend¬
economy as a
facturing production wiih practically
1970.
climb
to
billion to
$11
of
have
,
mean
industry. Turning to the
will
,
Corpo-
ration
s w°uld be good news foi
S
Metrical industry
whlch ls doing mighty well as it is
on
joined
has
Cros^ley
business
emphasizes the
consumer, commercial and indus¬
trial usages, and envisages electric power sales tripling in
1970. Predicting the electric utilities will grow in proportion
editor
inexpensiveness, widespread
in
National Securities
John
to some $50 bil¬
grow
billion
J. R. Crossley Joins
as
electric utilities will grow in pro-
Noted publisher and
13
(173)
The Commercial and Financial Chronicle
.
.
.
Dean Witter & Co.
with
i
14
The Commercial and Financial Chronicle
(174)
the
time
them
From
Washington
Douglas
to
the News
A head
the
in
had
been
productive
very
information
of
or
such
of
investigations
to
over
The Movement for Modernization
able
For Our State
are
headlines
either.
Partner, Meyer, Kissel Matz, Reynolds & Seward
Chairman, American Bar Foundation Committee on
turned
are
Model Corporation
investigation the examination of Humphrey by had a staff to do his spade work
situa¬ Senator Kerr of Oklahoma were such as in the case of the Mction by the Senate Finance Com¬ amusing but hardly important.
It Clellan Committee. Senators ask
mittee has gotten off to a
bad was a spectacle of two multimil¬ questions at pleasure but the com¬
lionaires matching wits.
start.
Adver¬
It came mittee counsel, young Joe Ken¬
to be handled by the press as a nedy, sets the pace.
tised
as
the
In other in¬
feature story, on the order of a stances, one of the members of
greatest
in¬
The highly-touted
of
the
country's
vestigation
its
be
in
more
ap¬
It
is
to
Senators
that
it
expecting to have
looks
as
50
years
finish
to
Two
and Gore were
field day with
a
Justice
in
of
I
One
the
he
affairs
firm
either
man,
committee
is
of
a
Rather
for
tunate
I
the
think
or
tidn—acts
by states seeking
:
their statutes.
More
and
had
ing
made
important
insurance
to
reason
his
get to him before the newspapers
expect
with
fire¬
such
and
15
the
by
members
each
that of the early 30's, the
as
duller,
ducted
muckrak¬
a
tion.
largely lost interest in the story.
The investigation is being con¬
armor.
to the banking
fraternity which
investigation
works
in
full
and
Senator
committee
this
takes
that
means
his
questioning, according to his
of the newspapers.
Chairman
ing
more
out
of
likely
to
than this.
gogue
operate
The
two
or
the
then
three
the
on
the
committee.
Byrd
After
and
Kerr
comes
questioning
sen¬
goes
to the
highest ranking Republican, back
can't
the
to
headlines.
the
or
lire
dema¬
a
He simply
without
first
This is
take
muckraker
a
iority
There is noth¬
in
turn
doings have already
been relegated to the back pages
committee's
of
ranking
Douglas and Gore
days of end
the
of
Democrat,
are
etc.
at the tail-
Democratic
will
this
offering of these shares for sale;
any
or an
offer to buy, or
a
solicitation of
an
will
the
become
duller
committee
and
members
staff assistant
and
he has
grounded in
come
the
one
be¬
not
subject
at
hand.
has
unusually
an
sharp mind, has been complaining
the criticism that the investi¬
over
gation is political.
There is noth¬
important to the people
money
and the way it is
more
than
handled, he insists.
But
if
he
By brought out anything in his ses¬
sion with Humphrey, except that
they have different philosophies
side.
offer to buy
of such Shares, The offering is made only by the circular.
the
matter
it
money,
A
of
soft
difficult to
was
hard
and
Gore
and
their
of
the
ingenuity.
Hence
be
must
one
o r
see.
outset
Kerr, Douglas
the
was
report
at
the
Air
of
one
the
or
the
Delaware
its
"fair,
its
Seward
on
annual
Stock
Exchange.
meeting
of
stock¬
opposition
subscribe for these shares
to
The investment counselling firm
of Karl D. Pettit & Co. is observ¬
have been issued by the bank to holders of its Common Stock of record
J uly 9,
ing today (July 11) its 25th anni¬
1957, which rights expire July 26,1957,
'
'
•
.
as more
fully
set
forth in the circular.
Subscription Price $$5
per
share
period,
any
may
to' certain conditions, to
unsubscribed shares and, during and after the subscription
offer shares of Common Stock as set forth in the circular.
the
se¬
curities markets continued in
the
doldrums,
as
and
unemployment
touched another high, that young
Mr. Pettit opened his counselling
firm with just two accounts. Cur¬
Copies of the circular
may be obtained
from
any
rently, he still numbers these two
original accounts among the many
of the several under¬
writers only in states in which such underwriters are
qualified to act as
dealers in securities and in which the circular may legally be distributed.
he added
more
over
the years..
existed
Blyth & Co., Inc.
need
a
guidance
the
First of Michigan Corporation
Watling, Lerchen & Co.
mutual
the
formation
Fund,
Goldman, Sachs & Co.
Iiarriman Ripley & Co.
Hornblower & Weeks
Incorporated ~
Lehman Brothers
Paine, Webber, Jackson & Curtis
_
„
in.
C.
„
Koney & Co.
-
-
Bache & Co.
**+&!££&**•
.
A. M. Kidder & Co., Inc.
Smith, Hague & Co.
with
Knickerbocker
Cap¬
designed to
Fund,
double
the
barrelled
chal¬
28%
the
proposal
vote
against.
59%
was
That
was
for
last
Baker, Simonds & Co.
comfort
State
o
NEW
ULM
Minn
**
John
of
California
of
California
if
that
in Delaware
amendment
his
out
be
prior
approval,
violation
a
P
Noyes
the
of
the
it
with¬
would
R. C. O'DonnelF & Co.
F. J. Winckler Co.
Furthermore, he contended
Company ought to have
a
negotiating
permit
prior to soliciting proxies from
California
residents.
attack from this
with
withheld the filing in Dela¬
pany
its
of
ware
and
Faced
quarter, the Com¬
instead
with
the
charter
filed
amendment
application
an
Commissioner
for
the
requisite permits. Of course, the
Company reserved all of its rights
and contended that California had
jurisdiction
of
a
past
over
foreign
the
internal
corporation.
February,
the
Com¬
an order denying
application.
The
Company then filed a complaint
against the Commissioner in the
Superior Court in California con¬
Company's
tending that the order was dis¬
criminatory, arbitraryan abuse
of discretion and beyond his juris¬
status
to
I
understand the
be
that
the
present
matter
has,
by agreement, been referred back
has become connected with
to the California Commissioner for
mussen
David A.
July 11, 1957.
Noyes & Co., 208 South
La
Street, members of
Salle
changes.
furthqr hearings.
the
New York and Midwest Stock Ex¬
jurisdiction because secu¬
by its residents are
Under that theory every
affected.
which Western Air
other
state in
has stockholders
could also
jurisdiction. While it sounds
absurd to say it, the logical result
of the theory would be that many
assert
corporations could
the
veto
subject to
state
every
Union.
the
in
be
of
powers
California
CHICAGO, 111.—Martin C. Ras-
Nauman, Me Fawn & Co.
the
Doctrine
Affairs
Internal
the
diction.
(Special to The Financial Chronicle)
of
owned
Lines
law.
that
the
C°" 28 N°rth Mlnnesota street
McDonald-Moore & Co.
the
missioner issued
&
With David A.
in
Company should file its certificate
This
i
Co.
Charles A. Parcells & Co.
found
affairs
r*
theory
basic*
The
rities
opposition group, however,
not ready to quit and they
taxes.
.
qualified
however, does not depend
the location of the corpora¬
tion's property or where it car¬
ries
on
its business.
California
claims
October.
no
With State Bond & Mtg.
.
Kenower, MacAithur
movement
a
foreign corporation there and its
executive
offices
are
located
fs was
position,, but
adopted. The
and
lenge of inflation and confiscatory
Straus, Blosser & McDowell
S. R. Livingstone, Crouse & Co.
the
Goodbodv & Co.
■
of
He later added
Venture
meet
Merrill Lynch, Pierce, Fenner & Beane
fund
full-mnaged income fund,
a
1938.
ital
Manley, Bennett & Company
McDonnell & Co.
in
professional
the smaller in¬
Pettit pioneered in
Mr.
vestors,
for
among
have property
It is
within the state.
Western
if
decision
did not
Lines
Air
*An
address
by Mr. Seward before the
Society of Corporate Secretar¬
ies, Hot Springs, Va., June 6, 1957.
has
There
obtained
Cognizant of the fact that there
would
its
enforce
upon
was
Commissioner of Corporations. He
took the position on behalf of the
reached
practical matter,.'
not be able to
Of course, as a
California
there.
there
was
barely
the
case,
course,
It was on July 11, 1932 when
trading volume on the New York
Exchange
in
not
change was
interests of the shareholders.
best
op¬
Of
The
the million share level
The several Underwriters have agreed, subject
purchase
of
Stock
;
•
purpose
charter amendment
a
the
deciding
from
Commissioner
the
that
voting.
versary.
1
the
Air Lines charter did not prevent
which would eliminate cumulative
Twenty-Five Years Old
($10 Par Value;
Rights, evidenced by Subscription Warrants,
considering
for
cu¬
Western
They got
group.
hearing by a joint
in by use of the cumulative vot¬
Committee,f domi¬
ing privilege contained
in ; the
Democrats, approving
Company's charter. After the 1956
the
Administration's
monetary
annual meeting, the directors
policies.
called
a
special meeting of' the
Karl D. Pettit & 60.
Common Stock
eliminate
to
mulative voting from the
York
stockholders
a
wanted
holders
holders held in April, 1956, two of
the thirteen directors were elected
an
in
and
equitable." The
majority of the stock¬
just
fact that
C.
Geo.
shares
listed
are
change
any
rights, preferences, privileges
restrictions of an outstanding
security unless the Commissioner
has first decided the change to be
corporation
and
The
stockholders.
prohibits
thority
the
West Coast. It
a
California
has
air lines which
serves
veto
statute under which he claims au¬
it
recall
to
Lines, he has a seri¬
power over the internal
affairs of every corporation which
Lines. You
will
as
Air
Western
ous
Congressional
of Detroit
veto
in his stand
If he is correct
about
nated:, by
Manufacturers National Bank
to
the residence within California of
re¬
Western
by
the
of
the
by
claimed
Commissioner
the charter amendment rests upon
cently when I
At
jurisdiction
California
shareholders of Western Air Lines.
one
heard
is
the
Firms
Foreign
Over
point I want to make is that
alert
got
as
Power
The
surprises.
on
the. New
thing that tended to take the
wind out of Messrs.
156,600 Shares
tue
the troubles of
who
Kerr,
ing
corporation law. Businessmen
and their lawyers survive by vir¬
I
only
Veto
in
the
has
'
public opinion.
f
committee
corpora-
popular and reliable guide in modernizing
a
There is always something new
gradually lose their interest
study will fold up. As of
the
now
in
not an
It
corporate—and non-profit
Praising Delaware's law for its excellence, and
Carlisle Bargeroo
dent has been
Noting the
perplexed, however, by the stigma still attached to that state's
law, the noted attorney points out that a law's wording is not
enough since a lot depends also upon general attitude and
for¬
that
country
internal
state to regulate the
sponsored by the two national committees he chairs
Jot of
a
one
incorporated in another state.
acceptance of the model
a
an
is
it
inadequacies of state laws and problems
attempt by
people's growing concern of being left behind in the economic
race
by other states, Mr. Seward describes the increasing
advocating such a type
inquiry into the monetary sit¬
making life hard for the
ex¬
on
an
was
heralded
study
of
the
political unrest in Con¬ wifely
gress and in the country on this monetarv situation is taking this
amining one
subject but Kerr could not get to shape. But such a study will not
witness, retir¬
run
the four years prescribed.for
ing
Secretary
of
the
Treasury first base on it against Humphrey,
it or develop any useful informa¬
Humphrey, and not the slightest and Douglas and Gore could not
spent
arising from
not
am
uation.
and the small businessman. There
when
on
working actively in the promotion of better incorpo¬
ration laws discusses
attache, has got to dominate the
hearing if it is to strike fire.
of
consumer
Black
the Senate.
icy of enriching the bankers and
been
Hugo
member
they claim is the Republican pol¬
it.
weeks
have
Douglas
and
Kerr
Humphrey and to develop plenty
of political
capital out of what
though it will
take
that
secret
no
propriate
say
An expert
giving birth to a baby en the committee with a prosecuting
route to
the hospital, something knack, runs the show.
Joe Mc¬
odd,.something different.
Carthy was of .this type, so was
it would
Acts
Chairman, American Bar Association Committee
Corporation Laws
woman
50
kind
years,
-
monetary
of
Corporation Laws
By GEORGE G. SEWARD*
Usually
general counsel who has
a
Thursday, July 11, 1957
.
to
has
writing neither
Gore
nor
gets
the .witness
get at Humphrey.
Investigations so conducted
not
By CARLISLE BARGERON
questioning
interest
out. As of this
run
.
.
been
this
in
ceptance
the
should
the
is
of
a
corpora¬
regulated only by
be
of
state
trend
the
that
conclusion
affairs
internal
ac¬
of
country
reasonable
very
tion
growing
a
That
incorporation.
evidence of the clari¬
an
fication of
our
porations.
The Western Air Lines
startling exception to
is
case
a
There
the trend.
which
tions
thinking about cor-/
we
are
can
other excep¬
mention
but
they have in recent
years
become fewer and fewer.
In my own state, New York,
a
fortunately
decided
was
case
in
1934
which,
applied New York law to the divi¬
dends of a Delaware corporation.
It
held
subject
that
to
declaring
illegal
spite
proper
the
directors
were«
suit in New York for
dividends which were
the fact
under
While I think that decision wrong,
its theory
ern
Air
>
York law de- .
that they.« were
Delaware
law.*
under New
differs from the West¬
case.
The alleged
Lines
jurisdiction rested upon the sta¬
tus of the corporation as a foreign
American
Continued
on
page
34
Volume
5654
Number
18G
.
(175}
The Commercial and Financial Chronicle
.
.
Chemical Research's Impact
Plastics
material
On Tomorrow's World
the slow
smug,
or
means
billion investments in chemical research
offers
the
the world has
ever
And still
search'
and
grows,
This
year
chemical
tries
billion
vate money
f
As
finding uses
—
*
as a
disinfectable
and
and
so
zihe,
the
At
.
this
rate
has
have
John Callaham
been
no
product
growing—and
grow—that figure
able—or
by 1975.; be
The impact of that research will 'how
b.e felt in the business and in the
will hit $3.5 billion
>
r
-
v.
stress
of all basic
almost 40%
—
research
done
by all
industry is
....
many
th^+
developing
»->o
one
thp future
there are!
from
the
sun
trapned.
Faulty
-
will be
and
stored
diseased parts of the
or
nWrv+Ur
jv>r»lo<^»rl
Contributionterials, such
of the
some
as
bv
a,mtbetic
vr>;^-
by this new type
??> n^on ar^fy
has already
Slvejl
new.1??se 011 jlfe.
mor®
. than 500; cripples and victims of
JP? "r
Here , aresomeof the
.breakthroughs ,1 expect"researcharteriosclerosis,
;
ever
be
known.
the impact
of
terms
,
—especially chemical research— ^ One deadly threat to civilizadustry, almost 30% for, telecom- to be chalking up by the time the tion — an uncontrolled, choking,
munications. This can be particu- f :' •
* 1 '
V*
- y ■
■
•
chemical: 20% for the aircraft in-
Notes
INC.
National Security Traders
Association will be held at the Homestead Hotel, Hot Springs,
The 24th Annual Convention of the
Va., Nov. 3-6, 1957.
outstanding resort hotels
Alleghanies on an estate of over some
The Homestead is one of America's
located
in
the
17,000 acres.
Virginia
There
The Homestead
are
course
two 18 hole golf courses on
is immediately
the property.
adjacent to the hotel and
Championship Cascade course is but a few miles away.
The hotel maintains its own stables where riding horses are
may enjoy a carriage ride through the surround¬
Tennis courts are adjacent to the hotel and Skeet
shooting are also available.
A most interesting program has been planned which will in¬
clude several well known speakers. Ample time will be allowed
or
one
ing country.
for pleasure as
well
as
business.
Special Pullman cars will leave Chicago, Cincinnati, New
York and Philadelphia Saturday, Nov. 2, arriving Hot Springs
Sunday
morning.
Cincinnati
in
The cars from Chicago will operate
both
the
Returning,
Pullmans
Hot Springs
will leave
evening Nov. 7, with arrival in Cincinnati, New York
delphia Friday morning and Chicago Friday afternoon.
The
Cocktail
Cincinnati
Party
on
Stock
and
Saturday
Bond
Club
will
be
Thursday
and Phila¬
Hosts
basic research sets
planning, for.,
the shape and ;
Right here, let
.dustry leaders
.;
evening
for
those
who
are
using the
Special Pullmans which,
will leave Cincinnati at 11:30 p.m. for Hot
The
cost of the All Expense Trip
Springs. *
which will include round
trip rail and pullman also hotel rooms will be approximately
$190 each from New York and $230 each from Chicago for one
in a roomette or two in a compartment.
.
add that in-
me
certainly hold
can
This announcement' is not
have,
been
in
leaders
into
meaning
the
"chemical
V;-Since
saiito
million
tion
of
spent
and
develop-
of 230
Let's
take
•
v.'\
'
J
»
new
offer to buy securities.
made only by the Prospectus.
>.
NEW ISSUE
y
.
v
'
$20,000,000
...
„
Associates Investment
quick look at two
products of chemical research
—titanium
offer of securities for sale or a solicitation of an
The offering is
.
..
Products
Looks at Two
;'.v:
.»
...
resulting in the introduc¬
new products.
,
,
example. Mon-y.
more
t'rnn tf'85
research
on
menty.
nation's ; wallop [n
the words '; ;
a
research."
1950, for
has
•
the
among;
putting, such
an
.
their heads up in pride, for some
any
a
metal
.
5%% Subordinated Debentures
urethanc
and*
resins:—that have just reached the
commercial
a
5;
they're
horizon;
still
bit confused by it.
This is titanium, the newest and
Dated June
Due June
1, 1957
1, 1977
fastest-growing industrial metal—
a laboratory curiosity just 10 short
ago.Titanium -is
years
,
sometimes
-
most
,
Offering price 100% and accrued interest
called
the "It" metal: High strength
(al¬
strong ,as steel), light .,'
(half as heavy as steel
as
weight
resistant Jone of : the.
best). .The missing "It"—mi
attractive price—will come with
technological improvements.
corrosion
,
very
*'•
In
we
1948,-less than
produced
nium—^-three
10
years
Copies of the Prospectus may be obtained from such of the
undersigned as may legally offer these securities in this State.
„
ago,
three tons of tita¬
measly tons! Today
\ve
can
produce at the rate of
close to 35,000 tons; by 1975 we'll
be hitting closer to a
a
year.
v
-
-
because
prediction—and it's
foolhardy by many—
we
must
ingenuity
and competence of America's en¬
gineers and America's private
enterprise—when teamed together
under the proper incentives.
<
Let's
look
plastics:
the
at
a
new
family
polvurethanes,
are
every
making
day.
Bear, Stearns & Co.
Harriman Ripley & Co.
*An
address
F. Si Moseley & Co.
They're cheaper than
by
Mr.
Tomorrow's
Eastman Dillon, Union Securities &
Ladenburg, Thalmann & Co.
Callaham
before
Challenge, June 6,
1957.
Co.
Lazard Freres & Co.
Stone & Webster Securities
Corporation
history, foams
history almost
the First National Bank in St. Louis' Con¬
on
Beane
Incorporated
Wertheim & Co.
rubber, better than rubber, much
ference
Drexel & Co.
of
most
famous foams in all
that
Merrill Lynch, Pierce, Fenner &
Blytii & Co., Inc.
underes¬
never
the imagination,
timate
Lehman Brothers
million tons
I make this
considered
Salomon Bros. & Hutzler
July 10,1937
a
through Cincinnati enroute to the Convention. Reservations have
been made for Dinner at the Beverly Country Club Saturday
>>
" ^
size, of things to come.
at
evening Nov. 2, for those passing
.
,
significant in
through
directions.
,
larly
of to¬
row's world!
SECURITY TRADERS ASSOCIATION,
NATIONAL
available
just human body—such as bones, ar¬
teries, muscles — can be perma-
willing—to\ say
.
Here are
has
That will
and Trap
of energy, including nuclear, will
then gradually become archaic,
a
new
seem5! to
,
But what does research hold for
,
addition—and this I want to
In
.
is
Research's Future
life of almost every per-
son.
•
a year
future of
tear for the
that
•
NSTA
psychochemo-
and
used commercially. Present forms
summarize it this way: 1
f°c+
••w
will continue to
private
me
In
believe:
I
become the symbol
millions
otherwise
life of mental twi¬
This chemical, chlorpromaone of a dozen products
Energy
development.
Let
a
brought
is
chemically
/
.
This
through
already breaking this barrier.
coatings
wire
toys,
* '
on.
to
oomtri
light.
urethanes!' are
floor covering, in
synthetic rubber paints, adhesives,
chemical
o r
research
therapy will
of
hope
to
the
resins,
—
world
day's chemical research on tomor¬
tility.
the
control
under
automobile
clothing,
rigid foam in aircraft and so on.
pri¬
—
coming
be
probably
sea,
Mental illnesses will be
auto safety sun visors
crash pads, as a clothes brush,
and
$1
to
will
water
the
known.
now
padding,
spend
close
almost
.uses
Arctic
and
alone
will
1930—will
since
again.
Fresh
from
tioning block, insulator in outdoor
indus¬
process
be
-
wall panels, X-ray posi¬
sulation,
alone,
the
con¬
.
grows
apace.
be under
chemotherapeutic
for polyurethane mechanisms that imitate the hu¬
foams:
as
a
carpet : underlay, man kidney, the most efficient
furniture upholstery, for sound in¬ water demineralization system
developing
might well be
curbed through a simple, harmless
chemical regulator of human fer¬
—
diseases—including
And at 65, they'll
"younger" and healthier, too.
double
.Here are a few of the new and
re¬
almost
inhabitants
generation
Aging processes will be re¬
tarded, and the number of people
over
65 in the U. S.—which has
known."
do.
never
can
world's
each
human lives and man's happiness,
the next 20 years can bring—and
will bring, if man himself permits
it
the biggest revolution the
trol.
lighter, non-flammable, resist rot
and vermin, can do things rubber
will life be kind
to
the
smug,
the slow or the
weary.
That's the impact of yes¬
terday's research on today's world!
again
Inor¬
new
cold—will
common
doubled
Never
brand
the
doubling of
a
tuberculosis, arthritis and
effective
variety of predictions concerning
a
in¬
a
Most human
cancer,
development to reach $3.5 billion by 1975. Cites titanium
metal and uranium resins to illustrate startling contributions
"the biggest revolution
major
a
to
volved in this building.
will life be kind to the
and
being made, and
be
construction
lead
explosion
population
could
ganics research lab. More than 75
applications of plastics are in¬
the weary." The Chemical Engineering editor
current $1
expects
For
lVIonsanto's
to
today's world
impact of yesterday's research on
Mr. Callaham that "never again
the
miles northwest of St. Louis
few
Editor, "Chemical Engineering"
to
then
will
for
preview of what's
coming, I urge you to go just a
dustry.
By JOHN R. CALLAHAM*
The
200th year of
Independence:
cancerous
that
S.r celebrates its
U.
15
White, Weld & Co.
,
16
(176)
The Commercial and Financial Chronicle
market
THE MARKET... AND YOU
By WALLACE
an
leaders.
of
more
the
the heavy, overhead
away at
resistance
the
on
the
way to
all-time peak in the industrial
average. In the latest surge
the industrial index was able
to
better
statistical
around.
Some
below
flow of
bullish
a
summer
with
rally
0.10
was
largely
a
of
the
peak
and
the list has been able to take
showed
good
strength, al¬
selective, in a wide
„
variety of issues.
Profits for the first half
-
million
Standard
in
in
results
that
At
flow
is
an
-
4-to-l.
nancing,
to
The
no
of
possibility
in
divi¬
a
with
that it is overly
increase
indication
time,
in
no
idle
one.
If various
options
exercised, the gold pro¬
ducer could
acquire up to
are
31 rc
of
and
the
the
would
the
at
favored
a
in view of the
one
million, representing $115 a
signifi¬ share on its stock. The shares
by acquiring were well under this level
rounded out its wares
Hazel-Atlas Glass and Robert
Gair.
until the recent
strength
At
Can
tinental
restraint
in
ap¬
j
its
acquisitions.
two
pany
—without
it
the profit
tabulations
those
in
arv
are
com¬
connected
way
officials indicate their
to force
them to divest will be
cessful.
unsuc¬
the
without
Even
is
nothing
lag. There
about that but
new
in the one-added
But
talks around the Street
Rails continue to
is
belief that attempts
—
30,
period
1956,
property
license.
Often permits madeprovision for the imposition of :
charges for the privilege of de¬
no
sion exceeded 18 million kilowatts.
This is far greater than the
amount
of
capacity applied for in
the past
r
It
veloping
Then
like
any
30 years.
twice
than
more
away"
note this week
was
that they were able to
show spotty strength even in
the face of the correction in
the
industrial
lack
of
The
section.
made
has
attention
under license increased from
about 9 million to 15 million kil¬
owatts and the operating
from
5.7 million to
owatts.
supposedly far
such fiml
a
was
couple of
a
in
new,
highs in Olin
a
before
row
profit-taking caught up with
the
issue.
which
is
And
a
U.
S.
Borax
leader in produc¬
ing the fuel base, Borax,
able
to
light in
a
its first
since it
In
a
the
convincing
was
lime¬
for
way
big market attention
w>s
b-ted late in May.
couole of cessions it raced
from
was
into
mov^
about
the
listed to
a
extended
low
since
it
that
cate
twice
its
rmige
around 10 noints.
high that
far to
so
will
it
has
covered
be
8
total existing
non«-federally owned
hydroelectric capacity in the U. S.
-
.
been
market
Engineering
leading
a
existence
the
last year and has yet to carve
out a full
10-point range for
split
main
are
shares
since
for
better
high since fare boosts
marketwise
of
tally, both Consolidated Edi¬
and
son
Commonwealth Edi¬
latelv have indicated that
they will be
in
the
market
have
pro¬
Monsanto Chemical, which
held
inside
a
10-point
range this y^ar, supposedly is
to be th° n^xt to move into
the fuel f'cld but
ket wise
;t
has
moving bsm
ui
so
far
been
a
quality
of
Southern
Pacific
have been available at
of around 634
from
14
to
and
same
% but at
20
price
a
points
and
yield
a
lower
1955 when
under Federal Power
tune with the
other chemicals since the
profit-squccz?
started
hurt¬
ing.
capital activities.
rate
the
was
profits weren't
significantly different Sopac
like others is also
item
but
point
has
had
attention
mineral
a
little
Commission
•
its
Combustion is also
date
for
eventual
a
candi¬
improvement since its
current
rate is well covered and 1957
estimates indicate that it will
be
covered
more
than-twice
makers
little
following and,
sult,
still
offer
twice
a
as
some
a
of
re-
the
Mclntyre Porcupine
a
a
least until corrective tendencies
up,
among
\
the
and
ects
2,600,000 kilowatts in 26 proj¬
are
private
developments.
Pending
of
as
before
Jan.
tions for
licenses
of electric
zations
license
the
1,
the
1957,
views
do
not
coincide
expressed
in
necessarily at
with
They
t
are
i
which
Commission,
were
After
are
either
under
include
the
by
fol¬
In
the
Northeast,
the
940,000kilowatt St. Lawrence
project and
the 2,200,000-kilowatt N i a
gara
project;
all
The situation
but' the
most
•
was'
hard¬
the
Southeast,
the
420,000-
kilowatt Coosa River
project;
In the
Southwest, the 75.000kilowatt Markham
Ferry partner¬
California, projects on the
Feather, Stanislaus, San Joaquin,
and
Kings Rivers totaling
1,470,000 kilowatts; and
REPORT
million kilowatts.
Now
a
few
words
about
our
the
develop¬
hydroelectric re¬
acted, authority for the construc¬
tion of hydroelectric
projects was
obtained by a variety of means.
River and Harbor Acts
and
1899, permission
construction
navigable
streams
of
for
dams
120
required
indi¬
the
of
close
by
business
provision for the disposition of the
address
Annual
1957.'
by Mr. Kline before the
Convention of the Edison
Institute,
■
OP
provisions
ot
State
with
of
4
»-
Chicago,
'
III.,
—
at
29,
1957,
call
a
made
Bunks
the
of
June
on
accordance
Superintendent
the
the
the
in
pursuant
Backing
Law
of
York,
New
ASSETS
balances
Cash,
banks
other
with
trust
and
compa¬
including reserve bal¬
ances,
and cash items in
$2,G32,471.64
collection
of
process
Government
States
United
and
direct
obligations,
435 635.36
guaranteed
stocks—
60,000.00
479.626.78
furniture and fixtures—-—Otner
assets.
——
1,046,818.99
—
;
$4,654,552.77
ASSETS
TOTAL
LIABILITIES
Demand
viduals,
deposits
of
indi¬
partnerships, and
$1,351,734.81
corporations
TOTAL
$1,351,734-81
DEPOSITS
LIABILITIES
TOTAL
1.928.334.80
-
June
4
$3,280,069.61
—
ACCOUNTS
CAPITAL
Capital +
1
500,000.00
325.000.00
549,483.16
—
fund
Surplus
Undivided
profits
•—
CAPITAL
TOTAL
AC¬
$1,374,483.16
-
TOTAL LIABILITIES AND
bank's
of common
capital consists
total
with
$4,654,552.77
ACCOUNTS—
CAPITAL
tThis
stock
pgr
value of $500,000.00.
MEMORANDA
Assets
pledged or assigned to
liabilities
and for
secure
other
are
I,
that
best
as
after
shown
deductioxr
re¬
786.52
CHARLES
J.
above-named
the
of
above
of
of
serves
the
$109,635.36
purposes
Securities
acts
of
Congress.
These
widely in their pro¬
Many of the grants were
perpetual, and those issued for a
♦An
CONDITION
Broadway, New York, New York,
published
over
varied
Electric
45
COMPANY
of
COUNTS
Prior to 1920 when the Federal
Water Power Act was first en¬
1890
1920
page
CORFOR ATION TKEST*
sources.
Under the
OP
the
on
Other liabilities—-—,.——
about
of the Federal
Power Act as a
background for
the Commission's functions in the
over-all picture of the
of
water
years,
TILE
the
Columbia
Basin, such
projects as Priest Rapids, Rocky
Reach, Swift Creek, Cowlitz, Pelton, the Snake River Projects, and
Noxon
Rapids, totaling some 5
25th
finally passed
Corporate
In
ment
of
—
ship project;
of
consideration
nies,
any
those of the author only.j r
generally not satdeveloper's
from * the
Continued
to
lowing:
limited term seldom contained any
'
were
congress
licensing activ¬
visions.
presented
transmission'
These authori¬
legislation for several
power
applica¬
under consideration
or
of
this
and
revocable at the dis¬
were
that
of
Commission
vidual
against the $3 dividend.
article
time
year
public domain for
power.
point of view.
such
hydroelectric capac¬
ity.
This
figure includes both
public and private developments.
$5
than
the
generation
preliminary permits and
totaling about 9 million
kilowatts
acts
1957
as
projec¬
profits for the full
"Chronicle-
cropped
better
despite
passedJ
6,000,000 kilowatts, of ened .were discouraged from at-'
which about 3,400,000 kilowatts in
tempting to develop hydroelectric '
9 projects are
public developments facilities.
:
'*
"
the
slow start this year
[The
was, at
covered
by its earnings for
tions indicate
Gold-Investment Stock
had
over
been
several years now and
Leader
have
has
payout
in
Carpet Issues
Carpet
Southern Pacific's dividend
dividend
of
use
totals about
pin¬ legislative history
although
royalties to the carrier.
over.
Statistically Attractive
was
laws
terior and
authorization at the present time
In
eight-figure financing multi-million acreage holdlater this year to
pay for their
ings already pay substantial
mar¬
slow-
it
domain, Congress had
New capacity being constructed iSfactory
;
In
Consequently, issues of the
they
than in 1956
trading. It still looms
importantly as a beneficiary the dividend
heavy expansion plans
public utilities. Inciden¬
re¬
currently in the works,
started
of the
action
duced little.
mundane
since
fanfare and split in the issue
the
Hopes
for
has
and"
cretion of the Secretary of the In¬
Proposed Projects
.
lic
several
projects under li-. the
about
57%
of
the. the
have
cense
interest
but
over.
Combustion
son
new
present $1.80
comfortably
and
projections for this year indi¬
efficient
more
the
dividend
responsible for
new
Mathieson
of
raised
was
authorizing the Sec¬
capacity retary of the Interior; under vary- '
million kil¬ ing conditions, to issue
permits for '
These
This increase in
covered
Announcement
now,
is
the carriers among the high¬ ity has occurred in
all sections of
h'^-energy missile- earnings of the acquired
the country. Projects of
rocket fuel fields.
firms, last year's results
particular
er-yielding quality items.
Developments
Stimulating
important water site.;
the charge of "give¬
an
as
laborious, long-drawn out process
operating to obtain authority from Congress
the
ity
with the
Energy
the termination of
upon
the
the
total capacity of applications filed
with the Federal Power Commis¬
-
high yields available. The
glamor issues of the moment
showing yet in
four-year,
■»
June
moment,
is still governmental disapproval of
the group
the
run
past $32
million.' At capacity in all of the 238 projects for the construction of any hydro¬
now
under license.
is
During this electric project.
present Mclntyre's portfolio same four
year
In the West where most of the
period
ending
also held out in the case of
comes
to approximately $90 June
30, 1956, the ultimate capac¬ projects were located on the
pub¬
Continental Can which
imminent
.
so
.
result of provision, Section
a
ended
Ventures shares period in
commitment
as
During
which
interest
!
of the FPC's duties
some
10(f), requiring owners
projects to reimburse the owners of an upstream
storage project for power benefits received from the
upstream
regulation provided at the head water improvement.
the
present a yield of peared and carried them
bright spots, as in Chrys¬
nearly 4% is available in thisj fabove the line. At least marler,' well anticipated.: Steel
issue
which also has been ketwise
its
gold operations
reports aren't going to be,
somewhat neglected market- don't
figure prominently in
startling, the consensus opin-.
wise. In fact, it has lolled in a
the appraisal of the shares'
ion holds,
but for them a
range that has yet to stretch value.
bangup final quarter of the •
to half a dozen points.
year is the prospect when fall
Spotty Strength in Rails
The shadow holding Con¬
orders
fective,
rialize
Mclntyre's gyrations.
Mclntyre's
of
resume
of downstream
strength in Ventures contrib¬
If, uted
7'2%.
whether
or
In his
developing hydroelectric resources of the coun^
try, Mr. Kline expresses hope that complete and
comprehensive
private and not Federal development of river basins will mate¬
a
level ,.its
projects
improvements constructed by non-
water
and it* role in
Mclntyre's interest was re¬
cash sponsible for Ventures'
good
nearly $7 this year in¬ action, despite its recent fi¬
with
year
ultra-conservative
dend
Federal interests.
whether
case was
few months suggests
taxpayers instead of utility con¬
be made to pay for benefits to Federal
resulting from head
question
in the latter
a
sumers
of
some
pick up with the full
benefits of the price hikes ef¬
but
$13
Oil
KLINE*
Expressing personal views, Federal Power Commissioner of
In¬
and
to $4.05 in 1955 and
up
last
cantly last year
are
be in flood tide with
to
Nickel
as
But much in
the way of
spotty and adverse
news
is no
longer any sur¬
prise andr the uphill strides
soon
picked
1954
in
possible, the $2 cash pay¬
posting. The ment is lifted moderately to
year ago came $2.50 the
yield would be a fat
then retreated.
though
$3.31
price-times-cash
the prospects of
record
new
From
dicated.
over
ternational
By HONORABLE ARTHUR
Member, Federal Power Commission, Washington, D. C.
despite Jersey, plus a
newly acquired
an
upturn in profits under¬ substantial investment i n
way
for three years now. Ventures, Ltd. The
prevailed at the June top.
Top Awaited
Sons
&
gold
Mclntyre's
sizable, run¬
book value
its
$5.04
New
Lees
Apportioning Hydroelectric Costs
Between Taxpayers and Consumers
in
of
are
Thursday, July 11, 1957
.
was
ning to $26 million
Amerada, $14 million in
values
has been selling substantially
forge to within three points
of the
high of 1956, against
the eight-point
margin that
The sentiment
James
it
long-dormant
shares.
investments
Stocks continued to nibble
But
of interest
case
investment company than
in
STREETE
a
.
.
above
mj
SKINNER,
institution,
statement
knowledge
and
CHARLES
Correct—Attest:
RALPH
,
Treasurer
true
WILLIAM
P.
R.
the
to
belief.
J.
SKINNER
■
CREWS
GEORGE
of
hereby certify
is
LePAGE.
j
.
■
f Directors
WATSONJ
Number 5654
186
Volume
(177)
The Commercial and Financial Chronicle
.
.
.
Frank R. Marks,
Additional banking facilities for
office.
Springs
office
of
The
*
Bank of Henrico, Sandston, Va. on
Farmers
July 15.
NEW
BRANCHES
NEW
OFFICERS, ETC.
*
*
common
Continued
National
Merchants
on
page
Bankers
and
REVISED
&
now
increased
capital stock from
$50,000 to $100,000 by a stock divi¬
dend and from $100,000 to $150,000
by the sale of new stock effective
ston, will be in charge of the new
Highland
CONSOLIDATIONS
its
in Sand¬
will become avail¬
able with the opening of the new
News About Banks
Bank of Rensselaer, Ind.
Assistant Cash¬
ier of the bank and
Henrico County
CAPITALIZATIONS
This
York
New
July
on
announced
2
The
Bank of
The First National City
proval
Freeport
Bank
The
ant Cashiers, all
N. Y. into Long Island
The
dents
P.
Hugh
are
Brewer, Jr.,
and William
C.
Graham,
P.
Robert
Vice-Presi¬
Assistant
new
The Assistant Cashiers
William J. Harvey, Jr., Robert
Trust
plan
Company."
Trust Com¬
$20,000,000
The proposed
West Penn Power Company
J
6, page 2632.
YORK
NEW
OF
CO.
TRUST
Mar. 31,'57
June 30,'57
June 30/57
Total
Cash
Total
2,955.822,515 2.995,550.025
2,457.059.893 2,484,511,333
resources.
Deposits
Cash
from
U.
se¬
profits
BANK
CO.,
TRUST
AND
Mar.
June 30,'57
31,'57
s
Cash
rity
Loans
23,309,237
~~
Govt,
27,5^8.037
profits.
27,615,532
47,942,423
44,269,457
822,781
discounts
&
16,039,977
secu¬
holdings
Undivided
91,421,432
from
due
&
100,440,302
101.838,672
banks
S.
holdings——
78,668,4^4
50,092,475
160,628,538
profits—
2,603,721
2,537,823
Vice-Presidents of the Chase Man¬
Bank.
New
York,
George
announced.
President,
Champion,
VicePresidents
in the trust
depart¬
ment.
Mr. Henning, who joined
the bank in 1919. has been in the
Both
former Assistant
are
corporate trust division since 1928.
Mr. Thompson has been with the
bank for 45 years
trust officer since
trust
Other
tions were: to
and has been a
1929.
department promo¬
Assistant Vice-Pres¬
Carroll, Milton J.
ident—John L.
Fred F.
Voorhees; to Assistant TreasurerAlbert E. Bedle, Joseph O'Shaughnessy, George J. Uhl; to Corporate
Trust Officer—John J. O'Connell
Redlich, Dudley S. Suits,
and Charles F. Ruge.
In
the
have approved
Security
The
State Bank &
Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in suck State.
the proposed mer¬
of the two institutions, accord¬
ger
joint announcement by
Mr. George A, Heaney, President
ing
to
HALSEY, STUART &, CO. INC.
a
international department
named As¬
Vice-President, and Earl T.
was
named Manager, of
Winters
branches in Puerto Rico.
Security, and Mr. Dwight J.
Corwin, President of the Long
State
Island
Bank
Mar. 31/57
$
June 30/57
$
Total
103,412,407 104,527,017
re.1 ources
SALOMON
at
stockholders
a
meeting held
Hunting¬
bank's offices in
the
Corwin
Mr.
Vice-President
elected
was
of
a
Security
and
will direct operations of the
Riv¬
erhead office.
The consolidated bank will have
of
resources
000
of
reserves
capital
the
Under
funds
and
agreement,
Island
State Bank & Trust Company will
receive
nine shares of
Security
merger
the
of
for each one
stock
State Bank
Island
INCORPORATED
HAUPT &, CO.
VAN
ALSTYNE, NOEL &. CO.
BURNHAM
Cash
share
S.
U.
rity
Loans
Govt,
Island State Bank
will be retained.
of the Long
ees
& Trust Company
Heaney said
Mr.
$30,000,000
the consolida¬
provide residents and
businessmen
of
Riverhead with
will
enlarged facilities and
the
Wisconsin
bank¬
services of the Security or¬
ganization. "The businessmen and
residents
of
each
community
ing
Cash
S.
rity
Loans
&
NEW YORK
—
Govt,
KINGS
37,597,157
—
7,097,793
8,256,854
15.087,983
14,795,770
17,091,981
14,436,048
1,495,817
1,441,149
J
discounts
profits
COUNTY
*:•
if
TRUST
BROOKLYN,
N.
COMPANY,
Dec. 31/56
$
resources——
&
due
Loans
Thirty-Five Year \Vi% Debentures
to ex¬
&
9,735,344
20.227,926
17.048,791
21,164,591
greater usefulness
bank customers to the
Riverhead
area,
discounts
Suffolk
Due
July 1, 1957
growth section
a
County
with
101.25%and accrued interest
Price
immense
July 1,1992
clared.
if
*
if
National
First
of
Bank
Spring Valley, Spring Valley, N.Y.,
with
stock
common
and
The
Sparkill,
dated
as
dation
of
$350,000;
National
First
The
of
Bank
Prospectus may be obtained in any State in which this announcement is circulated from only
of the undersigned and other dealers as may lawfully offer these securities in such State.
1,000,000
profits—
*
effected
was
the
under
HALSEY, STUART &, CO. INC.
charter and title of "The First Na¬
tional Bank of Spring
consolidated
the
Valley." At
bank
will
have
BEAR, STEARNS &,
CO.
DICK &. MERLE-SMITH
"
*
.
EQUITABLE SECURITIES
capital stock of $500,000, divided
into 40,000 shares of common stock
the par value of $12.50 each;
SHIELDS &.
surplus of $750,000; and undivided
NEW
SALOMON BROS. & HUTZLER
CORPORATION
R. S. DICKSON
BACHE &. CO.
COMPANY
HOSPITAL
PROVIDENCE,
value of $10 each, to Sl.842,400
consisting of 184,240 shares of the
same par value.
TRUST
resources
Deposits
Cash
S.
&
due
rity
Loans
CULLOM
DAVIS &. CO.
S
61,246,576
60.579,292
82,763,427
discounts
162,877,667
147,721,315
profits..
2,939,799
INCORPORATED
AUCHINCLOSS, PARKER &. REDPATH
-
H. HENTZ &. CO.
COURTS &
CO.
FAHNESTOCK &. CO.
JOHNSTON, LEMON & CO.
BACON, WHIPPLE &. CO.
IRA HAUPT &. CO.
McMASTER HUTCH INSON &. CO.
HIRSCH & CO.
SCHWABACHER &. CO.
SWISS AMERICAN CORPORATION
2,844,432
Undivided
BLAIR &. CO.
from
43.956,905
&
& CO.
INCORPORATED
308,199.983 315.207,220
holdings.-,-
,
Govt,
WEEDEN
Dec. 31/56
263,776,816 236,957,165
—
banks
U.
...
SHELBY
&, COMPANY
INCORPORATED
CO.,
I.
$
Total
by the New York State
Banking Department to increase
its capital stock from SI,282,400
consisting of 128,240 shares of the
R.
June 30/57
Island
Trust Company,
Garden City, N. Y. was given ap¬
BLAIR &, COMPANY
WILLIAM
*
<■
ISLAND
RHODE
Long
proval
HANSEATIC CORPORATION
YORK
profits of not less than $304,160.
•-:=
par
such
Sparkill,
N.
Y.,
with
stock of $75,000, consoli¬
of June 21. The consoli¬
21,117,342
935,951
secu¬
holdings
Dated
of
12,794,846
Govt,
Undivided
$73,913,941
63,643,232
from
banks
rity
S
$80,889,344
70.686,890
Deposits
S.
purpose
our
Telephone Company
the effective date of consolidation
Y.
June 28/57
U.
is
it
our
common
secu¬
holdings..
&
Mar. 31/57
from
due
if
Cash
all
for
The
37,944,996
Undivided
Total
and
tend the area of
'*•
$42,645,159 $41,538,691
resources
banks
U.
tion
28,512.809
58,229,3*4
59,890,608
June 30,'57
Deposits
securities.
potential for future expansion for
population and industry," he de¬
UNDERWRITERS TRUST CO.,
Total
offer to sell or a solicitation of an offer to buy these
offering is made only by the Prospectus.
This announcement is not an
The
14,121,320
V
V
THOMAS L COMPANY
According to Mr. Heaney, all of
the salaried officers and employ¬
27.500,474
discounts
&
ROBINSON-HUMPHREY COMPANY, INC.
CORPORATION
July 11. 1957
Com¬
of
secu¬
holdings,.
THE
AND COMPANY
SWISS AMERICAN
of Long
Trust
&
94,112,598
from
due
J. BARTH &. CO.
ADAMS &, PECK
Long
17,401,511
&
banks
SCHWABACHER &, CO.
THE MILWAUKEE COMPANY
IRA
stock.
pany
FIRST OF MICHIGAN CORPORATION
FAHNESTOCK &, CO.
STROUD &, COMPANY
HUTZLER
than $10,600,000.
more
shareholders
BROS. &,
than $114,000,-
more
total
and
98,377,217
Deposits
LADENBURG, THALMANN L CO.
&, WEEKS
HORNBLOWER
Com¬
Trust
&
should benefit from the consolida¬
BANK AND TRUST
COMPANY OF NEW YORK
COMMERCIAL STATE
HAYDEN, STONE L CO.
DICK &, MERLE-SMITH
BEAR, STEARNS L CO.
of
tion
Francisco de Jesus was
sistant
the
and the Long Island
appointed ton,
R. Thompson have been
hattan
❖
of
pany.
Henning and Joseph
F.
*
*
Stockholders
802,445
_
July 1, 1987
Price 101.666% and accrued interest
75,496.064
discounts
At
Arthur
secu¬
rity
Loans
S
111,456.815
resources
Deposits
U.
Govt,
S.
Due
Trust Company of Riverhead, N.Y.
YORK
NEW
Total
32,737,053
National Bank of Huntington, N.Y.
C:
if
FEDERATION
U.
1.590.673.428 1,526,533,434
92.680,991
90,0io,l93
discts.
&
32,306,895
banks
580.522,949
509.304.841
holdgs.
curity
Loans
Undiv.
668,973,333
686,810,593
banks—
,
Govt,
S.
263,701,803
from
Undivided
due
ancl
289,325.666
231,908,030
—
due
Sc
Bonds, Series Q,
$
320,118,405
resources
Deposits
Dec. 31/56
$
GUARANTY
First Mortgage
YORK
NEW
FREEPORT,
OF
1
,
■
BANK
NATIONAL
BROOK
MEADOW
Temple.
Shaw, ancl Robert H.
H.
buy these securities.
given in the "Chronicle"
was
of June
THE
to
Freeport,
of
Nagle.
are
sell or a solicitation of an offer
offering is made only by the Prospectus.
under the title "Long Island
pany
mestic Division.
The
on
Vice-Presidents
in the bank's Do¬
an o ffer to
is not
July 1 gave ap¬
of its Plan of Merger of
Department
appointment of three Assistant
and three Assist¬
the
announcement
Banking
State
York
New
STERN
BROTHERS & CO.
secu¬
t
July 10, 1957.
t
1
\
17
30
The Commercial and Financial Chronicle
18
.
.
Thursday, July 11, 1957
.
(178)
life insurance companies
The United States Environment
larly
assets are now increasing
annually by $6 billion, as com¬
pared with $3.5 billion only 10
years ago, little is heard
about
investment difficulties. If needed,
laws
seems
adequate to handle the situation.
toward future family obligations, Professor Huebner
believes the existing 3.5% of family's disposable income
Despite the large annual increase
in invested assets of life insur¬
it
companies,
ance
which does not rep¬
resent more than a 10% coverage of what should appeal as
a decent level of protection.
Praises current remedial educa¬
tional insurance program and envisages an enormous life and
health insurance growth potential.
amount of coverage
an average
liberaliza¬
appropriate
modest
a
tion of the investment
gation
provides
com¬
pany
which
annuities
insurance
life
Although
fire,
should
be
noted that the return on invested
alter
Federal
income
has increased from 2.88%
funds,
taxes,
for 1954.
1947 to 3.24%
for
Extent
ing
in the United States
of the promised dollars
death or retirement, is the
power
including all
upon
the types of coverage, has become
one
of the giant business enter¬
great
Private insurance,
•
life anti
insurance.
life
During the past three years there
has been a fair stability in our
During 1956
prises of the nation.
of
enemy
But
currency.
so-
yet there seems
as to the fu¬
as
called casualty
to
insurance
ture, and it behooves all insurance
to
fight resolutely all
forces that tend to debase our dol¬
protect ing
life
human
against
death, old age
ret irement,
accrflhent and
sickness, and
other types of
disability in¬
losses,
come
assurance
no
interests
companies
values
be
spending of income, too
family budgets are keyed
solely to present desires.
It is about time tnat we empha¬
size a budget arranged with two
parts: (1) expenditures to meet
the present and (2) expenditures
it
author
the
To
to
attitudes"
towards
and
casualty
then
important
tics
future
of
distribution
tax
quiz
have
and
I
must
please
now
tell
That
sense
tem
of
tion
is
beautiful
a
obligation under
private enterprise!
necessity of
of life and
some
of
of
should be
"business
To
the
appear
as
that
a
the
type
business
and
managed
and that
started,
liquidated just as
should
be
our
managed
and
is
People are
property posses?
as
compulsion
not
extensive,
in¬
of
except
compensation
automobile
in¬
insurance,
old-age and survivors insur?
Apparently, wherever univers^ality of protection seems viial
because of legal liability, like in
?
woikmens
the
compensation
and
ance
fact
test
in
insurance,
insurance, or of
financial responsibility
a
the
absence
has been made
on : ment.
ex¬
insur¬
automobile
of
meeting
organized,
liquidated, and
excess
well
ance.
,
.
ing up the population.
avia¬
of
as
property and casualty
is
surance,
and
sounqiy and honestly (speaking
an economic sense) as the vo¬
business
and
way
contracts,
Government
in
cational
by
in? workmen's
man's most important
enterprise,"
considerable
a
marine
with the total of all insurance for
the domestic market.
a sys¬
family
our
and
insurance
of insurance, but the total
relatively small when compared
is
proper
that
business
forms
health insurance
reflect
we
a
for
alien
insurance
reinsurance
that,
where
of
States
compancies receive
portion
anything is left to carry out your
taking care of the family's
of
not
Lloyds of London
non-admitted
idea of
future."
United
purposes.
have
me
that
sense
exports.
the
is
this
and
the
With special permis¬
sion foreign companies may enter
always astonishing to
family head say, and I
them frequently, "I must
areas
groups! mak¬
among
unconstitutional in
the Federal Government may
a
when
economic statis¬
income arid its
as any
national
regards
obligations,
standpoints, than 3.5% of
the famiJy's disposable income. To
it
in¬
boundar¬
Attempts have oeen n.aue to
impose taxation upon exported
piennums, but mat is
science
hear
national
insurance
portion of the budget relating
to the future requires more, from
the
moral,
religious
and
con¬
me
across
nave
the flow of
ies.
the
highly
life
insurance.
as
family
imposed
surance
proceed to educate that
and
attitudes
these
author
the
meet
to
(2) property
(1)
health insurance and
unreasonable
restrictions
on
atti¬
tude, involving the sense of obli¬
gation, is all too apparent in the
-
few
been
"public
seems
emphasize
important
Relatively
governmental
surance
Toward
Attitudes
Public
flation, by cutting down the buy¬
Private Insurance
of
the
almost
and
oi
considerable amount
a
insurance education.
many
The
Insurance
Vast
In
volving
com¬
•
fundamental
(3.9%).
compared to alcoholic beverages and tobacco pur¬
exceed total premiums for life insurance and
combined. Criticizing the sense attitudinal of obli¬
so
chases
miscellaneous assets
and
(3.6%),
particu¬
of property coverage, and
forms
estate
real
of life and health
by Americans is "pitiful" compared to
other
(4.0%), mortgages (32.6%),
(2.1%), policy loans
stocks
Insurance Professor Emeritus finds amount
and
industrial
(15.5%),
bonds
utility
University of Pennsylvania
President Emeritus, American College of Life Underwriters
Chairman of the Board of Trustees, American Institute
for Property and Liability Underwriters
marine
(9.5%), state,
and miscellaneous bonds (20.1%),
Emeritus Professor of Insurance,
insurance owned
bonds
Government
S. S. HUEBNER*
By
bined.
is widely
United States
among
provincial and local bonds (3.0%),
railroad
bonds
(4.3%),
public
For Private Insurance
annuities
life insurance and
diversified
But
of
insurance,
definite require-
a
actual
government
in¬
responsibility
ex¬
the basis of appraised values
proud of their
surance
in the liability forms of
3ions and are naturally d'sposed
pressed in the nation's medium of •insurance is
population increase of
not compulsory ex¬
to manage and protect those poif : exchange, as distinguished from
16.6%.during the decade, 1947-56,
cept in a few states.
sessions fairly- well.
So with re- mere sentimental concept! ns.
the national income (expressed in
However, there is substantial
pect to property insurance, in¬ ';Fiom a life and health insur¬
1947 dollars) increased from $197
'government ins ranee in vt erans
the
so-called
casualty ance standpoint, let. us not forget
billion
to
$260
billion,
or
by cluding
life- insurance, in old-age and sur¬
forms of insurance which protect that in 1955, according to Federal
31.5%. The income of employees:
vivors insurance, and in tne area
values, the growth of Reserve Board data, 11% of this
increased from $129 billion to $143 property
of savings deposit insurance. Vet¬
the insurance industry, will fol¬
nation's 42 million families had
billion, or 11%; corporate profits
erans" life
insurance1 under
the
low the national growth of prop¬
total money, income of less than
before taxes, income from unin¬
<;auspices of the Federal Govern¬
erty values. .Fire insurance cov¬ $1,000 'a year;, another 11%. be¬
corporated enterprises, and rental
ment compri.ed 6,439,000 policies
is estimated to be about tween $1,000 and $2,000; 50% with
income remained about the same, erage
in 1955 for a total face v.lue of
80% of combustible property. Ma¬ less than $4,600; apout 8%; With
while that of farmer proprietors
-nearly $43 billion, a sizable
rine insurance coverage is suo?
income of $10,COO :* or • over;
and
experienced a substantial decline.
amount to be added to other pri¬
stantially complete.
The; other that the arithmetic mean income
vate
life
Gross
National
Product
in¬
insurance of approxi¬
forms of property insurance, al¬ rif all families was1
$5,060. - Also
creased
during the decade (ex¬
though
newer
historically,; are let us not forget that 28%- of the mately $400 bill on. Old-age and
survivors insurance in 19^5 ex¬
pressed in 1947 dollars) from $232'
rising rapidly in the extent Of nation's families had - no - liquid
billion in 1947 to $330 billion in
tended to 101,700,000 persons with
their coverage of the values in¬ as ets'at .all; that 26%* hadliquid
wage credits, to 68,000,090 work¬
'1956, or by 42%. For the two volved,
J
; assets ranging up " to $500 only;
ers with taxable
years this Gross National Product
earnings, and to
But. When we contemplate life / that 11% had less than $1,000 of
was devoted to personal consumer
69,600,000 workers fully insured.
and health insurance (both based
liquid assets; In other words that
The governmental plan of
expenditure of $165 billion for
oil-age
65% of this nation's families had
on the dollar value of human life
1947 and $221 billion for 1956, an
and survivors insurance, for 1955,
less than $1,000 in liquid assets.
as it relates to the support of de¬
involved a total of $5,713,000,000
increase of 34.5%.
For the re¬
Despite the small average, life
pendents and business associates)
of* tax
spective two years, government
contributions, a t ital of
the situation is still pitiful.. We insurance per family, it ? should
7,961,000 recipients
expenditures were. $29 billion and
of monthly
talk a lot of the $400 billion of be stated that at present (in 1955)
$59 billion
(increase of 103%),
benefits, and a total; of $4,968,life insurance on the books and ; policyholders! savings with United
000,000 of monthly and lump-sum
gross private
domestic expendi¬
States
life
insurance V companies
the $5 billion of premiums paid
ture $30 billion
payments for the year.
and $47 billion
totaled $73.7 billion, an amount
for health and medical insurance.
(increase of 57%), and net for¬
And yet we fail too often to real¬
equal to nearly one-third of the
Social and Educational Environ¬
eign investment $9 billion and $3
ize how little this really means» combined savings
in all of the
ment Appraisal of the Growth
billion (decline of 66%).
other national media of savings,
from the "moral," "religious" and
Potential for Private Insurance
Along four other economic lines
"conscience"
standpoints.
Exist¬ namely savings and loan associa¬
of inquiry, suggested by the in¬
Attention has been called to the
ing life insurance per family in tions, mutual savings banks, com¬
vitation to prepare this paper, the
the United States averages only mercial
banks,
postal % savings, shocking lack of responsibility for
insurance industry of the United
the more adequate insurance of
$6,900
in comparison with the credit unions, and United States
States
seems
fairly
well
pro¬
the human
life
value with
life
annual
disposable personal 'in¬ Savings Bonds. Yet with a bigger
tected.
and health insurance for the pro¬
come per family
of $5,000.
Life life insurance coverage per fam¬
tection
of
family
deren dents.
v
(1) The role of insurance in the insurance premiums were in 1945, ily, a corresponding increase in
lar.
With
a
.
received
a
premium
income
-
'
•
of
nearlv $15
S. S. Huebner
Mil¬
lion, while property and so-called
casualty insurance companies,
protecting property values against
insured hazards, had a premium
income of approximately $9 bil¬
lion, or a grand total of about
$24 billion. But it should be noted
that this huge premium income
does not include (1) the premiums
paid to reciprocal and Lloyds or¬
ganizations doing business in the
United
the consider¬
property insur¬
ance premiums
exported directly
to Lloyds of London and other
able
States;
alien
(2)
of
amount
underwriters
non-admitted
and
the
premium
property
coverage
value of
provided
self-insur¬
ance funds whose large volume of
coverage is not disclosed by any
(3)
the
by
the
private
many
central
statistical
From the
source.
standpoint of admitted
assets, the giant nature of the
private insurance industry in the
United States is also apparent. At
the close of 1955 United States
life
insurance
under
their
of
assets
be
may
ternal
for
the
stantial
assets
bank
companies
and
and
the
property
admitted
tively
admitted
for
volume
automobile
gether
in
the
Canada
and
Yet
is
of
and
placed
the
the
rela¬
with
compared
insurance
of
between
and
countries.
settlement
small
enormous
fire,
of
casualty
companies,
protecting
property
values,' totaled $19.9 billion. For
all private insurers in the United
States,
other
balance
so-called
and
companies
States
certain
pro¬
assets
of
United
of assets for all
are
companies, it is
Moreover, there is admis¬
sion
insurance,
At the close of 1954,
combined
and
alien
true.
tecting human life values of about
S93.7 billion.
insurance
admitted
of fra¬
associations
marine
of
placed
with Lloyds of London and non-
associations,
life
amounts
aviation
total of another $3.2 billion,
grand total
a
had
assessment
insurance
savings
a
or
,
international balance of Dayrrents
is relatively unimportant.
Sub¬
protective wing total
billion.
To this
added
life
-
$90.5
societies,
other
and
companies
*
the
life, health,
other
forms
almost
domestic
alto¬
market.
Unfortunately, exact data
is
un¬
available.
still
and
assets
now
than
in
should
of
10%
a
appeal
Economic
Environment
Private
The
.
for
certainly
raises vividly the problem of a
wife's right, a child s claim, and
the family head's sense of hon¬
esty, fdmily obligation, and social
responsibility. American families,
the average, are the recipients
of fair incomes, but they are too
on
generally unwise spenders. Just
to illustrate, annual expenditures
growth
insurance
the
of
industry seem bright, economi¬
speaking, provided we suc¬
in
controlling any severe
inflationary trend. Continuing in¬
*An
address
fore
the
ence
at
of
the
by Professor Huebner be¬
International
the
75th
Wharton
na¬
tion's
(3)
cally
ceed
bacco exceed the total of the
Insurance
prospects for further sub¬
stantial
to¬
Insurance
anniversary
School
of
Commerce.
Confer¬
celebration
Finance
and
ful
of
insofar
as
that
service
be needed.
the
reference
insurance
indicated
many
premiums
Risk capital is also plenti¬
with
by
new
alcoholic
life
the
to
the
industry,
creation
companies
in
needs
as
of
is
so
recent
years.
(4)
annuities
tal
life
miums
beverages
insurance
for
life
may
the
-
The
and
same
be made for to¬
insurance
and
company
insurance
combined.
comparison
company
combined
pre¬
annual
greatest
of
high.
who
Insurance
The
several
States
insurance
by
of
the
na¬
statute
carriers.
Some
States
are
relatively weak from a regu¬
latory standpoint, but fortunately
others are strict,
Since
leading
insurance companies are admitted
to do business in most states, in¬
cluding
the
leading
and
most
strictly regulated states, it follows
that
policyholders in the over¬
whelming mass of cases are not
likely to experience difficulty in
the
ascertainment
tive
to
of
facts
rela¬
solvency, financial stand¬
life
and
amusements.
their
insurance
operation
companies
An¬
and
for
and
in
to
38.5%
have
is
conduct
nation
is
the
population
years
old or
24
have had four
years
high school education and 6.4%
had
that
legiate
four
years
or
of
more
But the trouble
high school and col¬
curricula, until the early
almost
completely
ig¬
the economics of insurance,
our
thirties,
nored
as*
contrasted
mathematics
with
insurance
law.
and
The lack of public understand¬
ing cf the human life value and
the
family
head's
gation
to
nomic
education
have
of
sense
obli¬
it
properly ap¬
praised and protected for depend¬
ents is now being remedied with
a well organized
program of eco¬
in
insurance.
This
rapidly growing educational
program is the most outstanding
forward-looking insurance
when
maintenance
mobiles
ing,
all
20
are
the
for
college education.
law the
organization, supervision and op¬
erational requirements of private
regulate
Of
over,
insurance.
of
tion
education
agents' licensing examinations in¬
ment outlets for
reasonably adequate.
huge $90 billion portfolio of
the
the realm of
to
of obli¬
force of all
sense
ists despite the fact that the level
of
purchases of passenger auto¬
seem
education
in
deeper
And this lack of
nearly equal twice
the total annual, premium income
spectator
nual
funds
lies
a
re¬
further
for
ment
and
The
gation,
savings would
solution
of operations.
Insurance
is probably the most
strictly regulated busmess in the
nation,
covering
organizations,
rates, reserves, investments, con¬
tracts,. agents' conduct,- and even,
to
an
ever
increasing- extent,
expenditures for television, radio,
cosmetics, toys and sporting goods,
Moreover, despite the huge
assets of the industry and their
rapid
increase, present invest¬
private insurance
awaken
coverage
and
may
The
Political Environment for Private
protection.
Present
for
sult.
level
decent
a
as
what
of
coverage
Our banking system is entirely capable of serving private
(2)
ex¬
total of $113.5 billion.
a
insurance
progress
insurance
ceed
life
only about 3.5% of
total disposable personal income.
This is certainly not what ought
to
be.
This average amount of
coverage does not represent more
are,
in
the
consequence
United
move¬
States.
As
a
the growth potential
of life and health insurance in the
United States is enormous.
are
already predicting
dollars
of
life
books within 10 to
the
first
a
insurance
15
Many
trillion
on
years.
$trillion
has
the
And
been
Number
186
Volume
5654
.
The Commercial and Financial Chronicle
.
.
Reaction
attained, the second $trillion will
Backdoor Nationalization Plans
be secured much more easily.
through the
efforts of the American College of
the
On
Lire
hand,
one
institute
lor
Liaoilily
Underwriters,
property
ana
insurance
are
and
lne
so-called
a
and
properly
to
casualty
rapidly oeing given
professional status on tne col¬
legiate level whn their Chartered
Life
Underwriter
(C:L.u.)
and
Property and Casualty
Underwriter (C.P.C.U.) programs
Both
Study.
invest its
the
number
holders
additional
passed
number
who
8,000.
In both the life and prop¬
tionary
and
the
universities
of
is
-be
contacting
will
the
be
exists
what
law.
medicine
in
This
the
1
p u
by
means
&
Wall
40
has
General
firm
are
Daniel
E.
Whitcomb
with offices at
New York City,
announced.
of
partners
the new
Sullivan,
R.
Leonard
Fitzpatrick,
formerly
Phelps, Fenn & Co.
P.
Harvev
Richard
and
E.
Whit-
in
partners
not be
even
Arthur Krensky Adds
141
before ad¬
public
under
owner¬
addition
In
to purchases on the
Exchange, the public own¬
Stock
ership of private firms is expected
also through
furthered
be
to
equities
will
of
payment
in
Executors
duties.
estates
ac¬
of
large
tempted
to
avail
be
Robert G.
Inc.,
West Jackson Boulevard.
the
realization
of large
blocks of
equities for the purpose of raising
funds to pay death duties is at
times difficult and tends to cause
the
fall
in
No
a
change
over¬
Exchange. To that
be tempted to, in¬
the
to
possibility
be
utmost
instead
of
mean
decline
a
the
evidence of
high divi¬
dends and Stock Exchange profits
through the rise in equity prices
over,
would
further
stimulate
and
would
centuate
the
inflationary
is
tillane
further
:
More
-
-
Mass.
now
;•
—
Robert
Court
—
He
John
and
Francis G.
is
now
with
Keller
Securities Co., Inc., Zero
Street.
(Special to The Financial Chronicle)
less
be
the
in
worse
It
sume
that
28 North
the
Weston Adds to Staff
!
»
'
in¬
GRAND RAPIDS,
engaged
Lynch, Pierce, Fenner
& Beane,
Michigan Trust Company Bldg.
•
♦
•
and
been
& Co., Inc., 9235 Wilt¬
Boulevard, members of the
Pacific Coast Stock Exchange.D. Weston
shire
>
„
arcjiot being
only
(Special to The Financial Chronicle)
LOUISVILLE,
Norman
with J.
West
of
has
J. B.
New
Walter
—
affiliated
Hilliard &
Jefferson
the
Ky.
become
Street,
York
Son, 419
members
and
Stock Exchanges.
Midwest
of
government
is
1959 or 1960, when
the next general election is due,
but the anticipation of such back¬
likely before
to
in
goods
would
Kaiser Steel
Corporation
avoid
luxury trades,
gambling. It
business, because heavy
through the bankruptcy of
losses
firms in which
public
would
moneys
storm of criticism. The scandal
$40,000,000
SVf/o First Mortgage
Bonds, Due 1977
a
of
loss
of
million
£36
groundnuts
rise
are
to
the
give
scheme
on
operated
the
by
the
publicly owned Overseas Food
Corporation is still fresh in the
minds of most people.
repetition
might
disastrous to
Private
ment
the Labor Party.
would
firms
which
taken
over
The
Its frequent
politically
be
capital
not
are
to
likely
select
to
be
57A% Convertible Promissory Notes, Due
would
firms
firms
by
invest
their
producing
in
savings
luxuries,
entertainment
the
or
or
gambling industries, or in highly
speculative firms. Essential indus¬
tries would
be
starved
of private
capital. Their requirements would
have to be met by the government.
Since
relating to the direct placement of
negotiated by the undersigned.
the above securities were
the rate at which
could borrow is
then
by
Purchase Agreements
government
likely to be
very
high, part of the
the
superannuation
of
reserves
V
scheme would have to be diverted
the
to
provision
controlled
is
capital
of
by
the
acquisition
the
done,
tional
firms
by
the
would
have
to
slow
nation's
capital
be
for
it is true, a number of
whose
equity
capital
is
There are,
firms
firmly
families.
controlled
But
in
the
by
wealthy
case
of
the
1982
the government.
recipients of increased divi¬
dends
the
$5,000,000
invest¬
seeking
inclined
be
casting gloom in business circles.
is
record,
and
balance
nationalizations
offered to the public.
matter oj
as¬
indus¬
essential
already
door
as a
July 9, 1957
for
govern¬
ment. To the extent to which this
Hilliard Adds to Staff
Mellman,
NEW ISSUES
would also have to avoid specula¬
invested
Mich.—Louis
Hoekstra, Jr., is now with Merrill
Calif.-—Rob¬
Mathew A. Saari
Gerald.
H.
Steinman have
added to the staff of Daniel
BEVERLY HILLS,
ert
in
to
and
entertainment,
tive
C
Merrill Lynch Adds
(Special to The Financial Chronicle)
government would
producing
used
a
for
the
of
addi¬
down.
resources
the less
more
a
The First Boston
Corporation
government
On
larger proportion of the
dustries, and
would
essential
in¬
smaller proportion
essential
;
de¬
direction
investments
its
services
firms
Minnesota Street.
change
a
reasonable
seems
confine
now
capital would tend to
new
flow.
the
are
and
invested. Apart from the
in the total of capital
which
Oniskin
(Special to The Financial Chronicle)
with Vickers Brothers.
This advertisement appears
cline
lor
F.
with State Bond & Mortgage Co.,
formerly
was
These securities have not been and
consumed
vestment, there would be
\
ULM, Minn.—Orville H.
Dornquast,
Ernest
A.
Mohaupt
(Special to The Financial Chronicle)
Brothers
Craig-Hallum,
NEW
'
Doherty
with
With State Bond & Mtg.
;
v
Mass.
was
Inc.
with
connected
Joins Keller Brothers
BOSTON,
he
past
L.
>
Consequences
would
the Phelps, Fenn
ac¬
wages
r
Traces
•
of Byrne and Phelps,
joined
(Special to Tuif Financial Chronicle)
rris, Upham & Co., 136 Federal
,
r
that the
wages
.demands
spiral,
staff
has
•
•
announced
With Decker, Barrows
less
expansion
and
modernization in industry. More¬
firms
prices of equities.
be
Inc.
With Harris, Upham
man¬
undervalued
also
was
entire
It is liable to in¬
v
,
.
BOSTON,
re&ct
capital investment. There
:
would
in
ship.
.
Weiss has been added to the staff
of Arthur M. Krensky & Co.,
consulted
themselves of this option, because
(Special to The Financial Chronicle)
—
its
elec¬
ditional industries will be brought
cepting
CHICAGO, Illinois
The
equities.
which rejected the Labor
Party in 1951 and in 1955 because
of the unpopularity of its ideologi¬
cal dogmatism favoring nationali¬
zation for political purposes, will
death
,
super¬
invest
to
fund
Act
an
proposed
the
in
gradually
all
comb,
Sul¬
bonds,
Street,
been
a
torate,
Co., dealers in State and
Municipal
of
adoption
the
yond
reserves
Formed in New York
livan
on
large scale. There would be no
need for Parliament's consent for
kind of nationalization, be¬
annuation
of Fitzpatrick,
next
this
authorizing
Formation
com-
the
nationalization"
"backdoor
.
Fitzpatrick, Sullivan
of their
acquisition,
s o r y
in¬
entire
of
Labor Government will engage in
buying public is
institution.
that, in addition to
should
'
It
complicating factor un
already over-involved situa¬
tion.
the national
than
dividends
of
and
Death Duties
for
means
dustries
education for both under¬
and
firms within
an
industrial firms that
they will
tries
nationalization
the
lack of a sense of proper family
responsibility will be superseded
by a much higher life insurance
.per family than now prevails. In¬
great ally of the private in¬
surance industry and insurance as
large
a
relatively short time cannot be
Equities
.
the
over
ruled out.
and
writers
of
acquisition
control
number of important
a
large,! the
very
the
of
possibility
Government
Then
surance
be
would
volved
''selling" will become
"teaching" and "advisorship," as
it should be.
Then the present
ah
exclusively in equi¬
the amount in¬
since
And
ties.
underwriter and his client,
"to
them
invest
apt to
on
necessarily
stock,
administration would
be
back into the firm a
part
of the profits. This
in
and
super¬
trustee
in
fund
annuation
between the
similar
relationship
\ client
proposed
un¬
Inc.
MINNEAPOLIS, Minn. —Brad¬
ley
C. Bowman is
now
with
Decker, Barrows & Co., North¬
western Bank Building.
In the
defensive
would
superannuation
the Socialist
public. The result
development
of a
indoctrinated
the
of
reserves
distinctly
Byrne,
Roger S.
uriwelcome
of the
case
large
are
employers
a
D.
and
Phelps, have been admitted to
general partnership in their firm.
The new partners were formerly
top officers in Byrne and Phelps,
ploughing
majority
capitals.
purpose
to
William
Byrne
organization.
Street.
Stock
limit
the
Instead of investing the
amounts.
greatly enlarged
a
they
employees would have to con¬
tribute considerable weekly
^insurance-educated and property
.
this
for
the
end
expected to be secured mainly
through the operation of a pro¬
will
underwriters
of
up
would
father
crease
-firms * through
in their equity
funds
The
de¬
if
in
possible
equities
valued
large num¬
very
a
buying
gradually
their
inten¬
after
power
of' industrial
holdings
within the next 25 years,
greatly enlarged educated
force
the
firms
It is to the interests of the
on
C.
invest¬
ment programs of many private
firms. Coming as it does on top
of
the
progressive flight from
government securities,
it is an
Socialist Government.
the
agements of
coun¬
election, to acquire
control of
ber
educational movements will
a
to
tend
fall
a
that
Edmund
terfere with the long-term
economy.
''
economy.
is
of
unfavorably
which
bound
Socialists,
assume
general
next
the
The two aforementioned insur¬
field
It
the
should
entering" the
at the rate of sev¬
eral hundred high schools a year.
,'that
of
tion
school system
mean,
develop-
ents
would
nounced
may
mearsures
foresha¬
ex¬
envisage that possibility.
feel impelled to adopt
a
clared
character is jected large-scale
nation's high scheme to which
also
ance
Einzig
Paul
economic
an
policy,
Phelps, Fenn & Co., 39 Broad¬
New York City, dealers in
municipal, industrial, public util¬
ity and railroad securities, an¬
way,
safe¬
majority holder.
with a change in
in the prices of such
involving heavy capital
losses to the superannuation fund.
are
industrial
most
Byrne & Phelps Join
Phelps, Fenn & Go.
equities,
boards and
Some
try's
for Family Financial Secu¬
Education, insurance educa¬
of
to
The
advent of
ther the
the
tion
of
adequately
The scheme has
measures
weaken fur¬
Life Insurance
rity
ecutives
defensive
are
Institute and the Graduate Work¬
shop
de¬
dows
em¬
Under
250.
about
excluded.
be
reserve
the
holders
the
together
r
cause
acquisitions of equities in
of death duties cannot
They
in
Tapidly that there is difficulty in
.supplying the demand for well
equipped teachers. By 1927 only
'56 universities and colleges had
courses
emphasizing
insurance
economics,
whereas
today • the
leadership of the
be
by
dividend
payment
pronounce¬
phasizing the economics of insur¬
ance is growing tremendously—so
number
the
ment
education.
colleges
and
and
inade¬
of
latest official
the other hand, the number
On
:
economy
loans, the. La¬
bor
Party's
also raising
of insurance
This,
of this for
Government
In addition numerous
courses are
level
the
not
guarded
large majority of the firms the
possibility of the government ac¬
quiring control through purchases
preciatron of have
ll
J.LA. program, in prop¬
erty and liability underwriting)
have also been developed and are
company
the
gold
program,
flourishing.
and
management,
quacy
:
America
of
Institute
"
fund to
government
consequences
But
prefer to. realize their hold¬
would
by the eminent British economist.
spiral,
wages
erty-casualty areas intermediate
training and education programs
(the Life Underwriter Training
Council
program
in life insur¬
ance
L.U.T.C. program, and the
Insurance
the
The
private
many
settling effect.
exceeds
now
allowing
equities*
investor,
described
all
but not
one or more
examinations
in
LONDON, Eng. — As if Britain
had not enough economic diffi¬
culties
already
from the infla¬
have
of the
legislation
reserves
private
neldsr
tive
of
enactment
are
thorough in their respec¬
Juot to illustrate, the
of
C.L.U.
designation
now
exceeds 6,0u0, and
equally
an
programs
buying.
ings, for fear that their interests
nationalization consent except for the
the need for the usual
Chartered
would
This indirect nationalization scheme is said to obviate
pov/er.
official
of
the government has acquired
control
exclusively equities,
purchase
result
once
and acceptance of death
duties in the form of equities, can be expected from the Labor
Party, according to Dr. Einzig, in the event of their return to
a
of
employer-employee social security contributions
19
Holders
Exchange quotations of
equities of firms coveted by the*
government would tend to rise as
By PAUL EINZIG
Use of joint
Private
of
Stock
tne Amer¬
underwriters ana
ican
(179)
industries.
'Investment/s^^k^EWY0RK
Securities
B0ST0N
Philadelphia
Pittsburgh Chicago
Cleveland
san francisco
20
(180)
The Commercial and, Financial Chronicle
I
policy making by business and by
Explosive Effect
Upon Long Range Outlook
vantage of the, profit potentialities
olutions
they evolve from the
research of the past and the fu¬
decade of continued progress, growth
of
favor
little
a
but
against insufficient
mist offers
not
positive
a
program
Believes that
depressions.
our
in
long
our
is
outlook
spending
that
reassuring fac¬
economic
industry is
range
U.
S.
lavishly
so
for
the
re¬
and de¬
seat, en
velopment
ac¬
which
tivities
contin¬
assure
ued
growth, is
so
carefully
measuring the
markets of
the
future
on
which
plant
equip¬
and
ment expan¬
sion
be
can
roundly based
and
Shields
Murray
is
in¬
so
dustriously
developing its
internal
man¬
effectiveness to the end
that every opportunity for expan¬
sion can be fully exploited. As a
agerial
growth
the
result,
potential
atomic
microscope,
we
pro¬
magnitude
tech¬
for
and
people
our
to
southern
which, with air condition¬
ing, are tolerable in all sqasons of
areas
the year.
the
next
middle-class
market
our
as
technology advances the
ductivity
and
income
of
new
pro¬
our
workers.
(5)
for
which
just
I
associ¬
am
completed
ex¬
an
detailed
and
appraisal
potential for the
growth
decade.
A
revolution
work
paper
except
man
has
is
decade
next
simply
enor¬
mous.
The
and expansions y cle¬
new
in
ment
this
economic
Ten
search.
and
institutions
were
than
risen to
over
ris¬
Na¬
tomation
of
.973%
of
outlays
arid
represented
Gross
National
but
1956
had
reached
percentage
1.5%.
devoted
1947,
total
in
Product
been
Research
purposes.
development
a
Gross
our
has
in
the
almost
.
.
The
aggregate
of
The
general
studies
our
in
most
colossal
the future
all
in
ever
invest¬
made by
or
in
came
erratic
and
lone
business
as
innovations
in
in
waves
wolf
inven¬
stumbled
productive
on
proc¬
Now research has been
ganized
tive
history
prior
favored
luck
esses.
or¬
predictably produc¬
a
which
process
that
assures
productivity will continue to rise
from
even
level
the
already
extremely
attained
high
in
this
country.
If,
age
as seems
of
likely, the percent¬
G. N. P.
devoted
to
re¬
to
pace
automatic
(9)
A
moderate
•
conclusion
from
is
reduction
in
hours
the
of work per worker per year and
a
rise
in
productivity which is
practicable in view of
for
research
will
and
as
outlays
development—
and
uct
in
1956
dollars
covery,
mining
applied
to
the old
metals
new
from
allowance
impact
of
our
to
billion
figure.
perience
is
reach
made
inflation
$600
If
in
the
tation
gas
our
businesses
government
have
and
our
that
learned
re¬
search pays colossal dividends and
exploiting this discovery
to the hilt.
are
system
Revolutions
ex¬
compounded 1V2 % per
annum rise in
prices — probably
the best working assumption at
the
moment
Nation
is not
logical
revolution,
in
midst of sixteen
a
single techno¬
but
is
in
the
different—though
overlapping—revolutions:
(1) A revolution in research it¬
as
of
our
the
scientists
new
make
electronic
full
data
processing machines, the electron
Gross
—
To
reach $700 billion by
opening
up
A revolution
loss
costly
comes
(14)
education
effective and
more
when
in
closed
circuit
for1 investors to make allow¬
in their plans for the fact
and
ance
that
the
second
be—if
which
is
being changed
fundamentally by the jet, nuclear
physics and guided missiles.
(15) A revolution in planning
by
government,
business
and
banking
new
which,
through
use
electronic statistical
can
now
obtain
postwar
decade
(16)
A
revolution
in
manage¬
ment
techniques which is slowly
evolving into a science, assuring
that all
of the other fifteen revo¬
lutions will be put to use by busi¬
to improve
productivity and
production.
'
ness
In."this
perative
Basis
for
Progress
environment, it is im¬
all
planning and
that
10)
frustrate
important.
achieve
not
identify
not many,
are
vitally
are
will
We
could
There
time?
the
poten¬
tial—
we
have too much infla¬
While
little inflation may
a
stimulative,
too
much
would
obviously disruptive.
Washington Water Power Co. first
mortgage
1987.
bonds, 4Js% series, due
The issue
The
(2) If
too little savings
help but hold ex¬
pansion in plant and equipment
expenditures to levels lower than
we save
of
incurred
notes
ment
repay
of bank
The
able
for
If
permit too small an
in the money supply
we
expansion
which would subject the economy
11'
nomic
have
we
instability, for
set
much
too
repay¬
refundable
the
first
five
redemption prices
from
105%
for
those
in
the
12
month
period
ending June 30, 1958. to 100% for
those
redeemed
in the
12
months
prior to due date.
is
an
an
Water
Power
Co.
operating
public
utility
supplies electric power to
which
area
in the central and eastern
ton
in northern Idaho.
and
erties
owned
are
Idaho
and
in
Prop¬
Washington,
Montana.
141,000 customers
total
A
of
served with
are
including the City
Spokane, Wash! Steam heating
service and water service
eco¬
also
area.
12
Total operating revenues in the
months ended April 30, 1957,
amounted
for years,
income
and
are
supplied in parts of the company's
boom and
a
back
us
net
called
monetary anemia.
($)
the
than
during
years at general
of
(3)
for
loans.
other
ranging
par.
the
use
like amount
a
bonds will be redeem¬
new
purposes
priced at
will
to
electric power,
have full growth.
necessary to
was
company
proceeds
portions of the State of Washing¬
which could not
to $26,905,000
before
interest
and gross
and
other
income deductions
(5) If we adopt anti-business
confidence-destroying, enterprise-
chilling
policies
by
government.
Positive Program for Progress
A
positive program for progress
postwar decade must
therefore include the following:
(1)
A
Federal
the
possesses
freedom
the
yesterday (July
of
$30,000,000
issue
new
Washington
(1) If
to
a
to
powers
them—to
party" when
and
ened
to
and
—
dar
$26,170,000
were
$10,276,000, respectively, and
in
1955
were
$24,441,000
and
$10,119,000.
First Boston Arranges
Kaiser Steel Direct
the
"spoil
Bond & Bote Sales
boom is threat¬
a
ease
1956
year
and
which
Reserve
use
was $10,436,000.
Comparable figures in the calen¬
Kaiser
Steel Corp. has placed
$40,000,000 in 5V2 % first mortgage
in
ger;
meanwhile, seing to it that
suply rises over the
bonds, due 1977, and >5,000.000
in
57/s%
convertible promissory
our
we
economy.
sixteen
olutions
technological
referred
likely to play
to
far
a
rev¬
earlier
are
impor¬
more
the
money
aggres¬
money
proportionately
years
growth potential in
the
to
tant role in shaping our economic
(2) Deliberate recasting of our
than are most of the is-' tax structure within the frame¬
with
sues
which
politicians,
and
bankers,
businessmen
leaders
customarily
union
themselves.
concern
The
economists,
our
new
element which
introducing
into
of life is
for
sustained
organized
are
we
economic
pur
expendi¬
research
into
productivity. This is so far-reach¬
ing in its implications for the
work
of
in
tion
slow
a
percentage of our in¬
being channeled into gov¬
ernment
outlays so as to divert
funds from
time
taxes
when
of
amounts
savings
that the pace
economics
tion
science,
nor
(4)
economics" of
the
a
state
"welfare
state
later day, nor the
economics"
the
of
era
economics"
of
nor
Twenties
re¬
accelerating
growth and preventing depression.
What we
need
is
a
systematic
of
the
economics
of
tech¬
nology,
since
some
profoundly
important changes in monetary,
tax, labor,
antitrust, farm and
other policies may be
necessary
if the "era of research" is to
yield
its full benefit to mankind.
lieve
that
it
is
is
reason,
only
in
of wage cost infla¬
policies
to
by
our
govern¬
our
fami¬
maintain
which
(5) Support by individuals, busi¬
of
and
business
associations
government policies which will
strengthen
courage
and
confidence
enterprise.
a
tendency
have
We
en¬
however,
tions,
implication
investigated
should
we
—
in
this
have
negative
something.^Why
not have
by
a
somebody is .being
for
our
a
the
broad inves¬
most
if
present
achieved?
will find explanation for the
phe¬
nomenal
growth in our economy
in the past
decade, for the mild¬
ness
of
the two recessions ex¬
bers
perienced since the war,
and for
tion
the
in
Galanis
success
we
have had
union-induced
wage
pre¬
in¬
entered
an
agreement for the pur¬
chase
by
its
parent
company,
Henry J. Kaiser Co., of $10,000,000
Cohu
&
of the New York
change,
announce
Stock
Ex¬
that
J.
M.
organiza¬
Galanis has joined their
as
Tucker,
director of research.
was
convertible
promis¬
notes, due 1983.
The
will
proceeds
of
the
financing
be
applied to the company's
expansion program, supple¬
menting it by about $81,000,000
Mr.
with
R. L. Day.
formerly
Anthony and
and
bringing
the total to $194,This expansion, which is
300,000.
taking
place
at
the
company's
plant at Fontana, Calif., is ex¬
pected
to
virtually double the
plant's capacity, causing it to rise
from 1.500,000 ingot tons to
nearly
3.000.000
ingot
tons
per
year.
When
the
is
program
completed
Kaiser Steel is expected
the largest steel producer
be
to
west of the
Mississippi River. The
expansion program is designed to
increase
ucts
capacity
which
are
demand in the
in
those
in
the
prod¬
greatest
West—plate, sheet,
tin, and pipe.
New Coast Exch. Member
William
H.
Agnew
(Shuman,
Co.), Chairman of the
Agnew &
Board
ship
Stetson, 26
Broadway, New York City, mem¬
venting
sinking funds applicable to
$30,000,000 in promissory notes
currently outstanding.
In
addition, the company has
of
Pacific Coast Stock Ex¬
change, announced the electioi\of
George H. Kellerman to member¬
With Winslow, Cohu
Winslow,
The financing
competent
the colossal
growth opportunities for the sec¬
ond
postwar decade are to be
16
we
be
of
an¬
next year,
country to investigate everything
under
the sun.
Most
investiga¬
be¬
technological revolutions that
July 9.
was
1956
generally sound financial pol¬
icies, and
nesses
group
certain
sory
reduced.
a
investors, it
arranged by The First Boston
Corp. as was the rescheduling of
so
and
must
economic way of life is
being rev¬
olutionized by research and tech¬
1982, with
on
was
mo¬
authorities of the conditions which
Still Not Appreciated
Few observers appear to
appre¬
ciate
the
extent
to
which
our
There
the
adequate liquidity, strong finances
tigation
nology.
support
unions
business and
our
to
on
the
Adherence
ment,
the "new
the
be
can
lies
of
power
to suggest that our text¬
"scarcity economics"
founding fathers of the
a
colossal
to
A broad attack
as
the
at
due
nounced
subordinated
(3)
nopoly
in
Neither the
savings
need
rapid growth.
be rewritten.
of
to
we
books
have to
steady reduc¬
the
come
future
may
but
notes,
institutional
our economy.
future
of
statistics and process them for ef¬
fective planning.
Co. and Laurence M. Marks & Co.
offered publicly
sively when recession is the dan¬
ma¬
adequate
underwriting group headed
jointly by Kidder, Peabody & Co.;
Blyth & Co., Inc.; White, Weld &
plan it that way—
another period of vigorous growth
study
of age.
A revolution in the art of
they
this
we
in the second
1966.
takes account of the vital role
search can play in
(13)
which
growth.
but
Will
first
must
we
so,
factors
would
The vital point is that it is es¬
for business management
"mature
waterway.
do
growth.
conditions
the
sential
transpor¬
new
refusal to meet the conr
prerequisite to progress
our
National
dollars
current
application.
Solid
the
as
emerging
our
in
Depressed Thirties,
»An address
by Mr. Shields before the
American Marketing Association,
Detroit,
Mich., June 21, 1957.
Product
(12) A revolution in communi¬
cation, as the transistor comes into
chines,
The meaning of this is that this
as
the
and
of the St. Lawrence
the
Sixteen
in
well
as
warfare
people,
are
involving the jet and the
will be close to
Our
well
are
A revolution
turbine,
road
refining
as
which
Occa¬
$600
to
were
we
the
for
a
ture
laboratories.
our
(11)
and
amaz¬
Power Bonds Offered
An
a
bust would
No
way
(10) A revolution in metallurgy,
new techniques of resource dis¬
TV
$100 billion.
costs
raise the output per acre.
billion per annum in research and
the total for the decade 1957-1966
use
agri¬
man-hour
cut
which will be
self,
merchan¬
in
an
and
up
those
meet
permit Gross National Prod¬
The
revolution
new
continues to rise, we will
by 1966 be investing close to $14
search
they
au¬
dising, supermarkets, new tech¬
niques in packaging, self-service,
TV advertising,
better materials
handling, etc., etc.
nation. Innovation and inven¬
tors
electronic
(8) A revolution in distribution
ous
nature
opportunities.
inhibited
has
be
that, with reason¬
ably full employment, the growth
in the labor force—allowing for a
factory.
techniques
unpredictable
as
the
the
the
resents
tion
of
changed
demonstrated
to face
or
be
can
culture, as new fertilizers, insecti¬
cides,
machines
and
chemical
the past decade has
been almost $37 billion. This rep¬
any
of
use
energy.
revolution in production
achieve
we
the
of
which is adapting itself at a furi¬
research
our
A
in
sources
but
power,
for
outlays
ment
(7)
atomic
efficiencies
new
as
Product
such
to
conventional
ing proportion
to
less
of
$6 billion and.
By
tional
spending
(6) A revolution in power pro¬
due not only to the de¬
duction
velopment
annually on re¬
1956 the total had
billion
$2.5
search.
educational
our
which, as the office is electronified,
will release
workers
for
more productive employment.
re¬
business,
ago
years
government
is
era
human
such
botch
•
the
have
ing ability at times in the past to
tion.
Offers G. N. P. Prediction
re¬
distribution creating a huge great
new
The organi¬
billion in 1966.
in income
A revolution
(4)
with
haustive
facilities
industry
move
poten¬
inherent
in a
growth
have
ated
of
our
as
life
ditions
the
of
quately appreciated.
permit the suburbanization of
and
sixteen
by so many tech¬
nological, revolutions is not ade¬
(3) A revolution in population
redistribution, as new transporta¬
population
all
running
are
period marked
"population explosion."
communication
We
by an unwillingness to appreciate
tials
mortality, extending human
reducing the toll ol" disease
and is in a large part responsible
and
realized?
about everything in our economic
periods,
fant
tion
rapid rate in the second postwar
decade.
But will the potentials
to the opportunities
which existed. And in many other
life,
our
very
in
The
(2)
A revolution in medical
technology which is lowering in¬
lor
a
sionally progress has been slowed
any
revolutions simultaneously.
effective.
more
at
But
niques, etc., etc., to make the re¬
search dollar
suming that the
continued growth
past have justified an opti¬
mistic evaluation of the outlook.
econo¬
tracer
reason
for
Thursday, July 11, 1957
.
.Washington Water
for as¬
potential exists
every
or
zations
One of the most
ef¬
economy.
one
After all,
the
textbooks in economics.
our
decade of
growth and
postwar
is
ruinous
having
our
of these revolutions would
two
cautioning
revolutionary research in
It
basis
a,solid
progress,
prosperity.
to accelerate growth and prevent
ductivity will necessitate rewriting
tors
and
supply expansion, the noted
sure.
technological
provide
second
a
continued
and prosperity." In
inflation
much
too
money
for
an enormous
be
we can
sixteen
our
revolutions
unprecedented sustained re¬
growth potential
impresses Mr. Shields, particularly the sixteen technological
revolutions taking place simultaneously which are said to pro¬
vide profit opportunities and a "solid basis for a second post¬
war
that
is
thing
one
from
on
There
be
Of
our
planning ta provide
as
ture.
Partner, MacKay-Shielcls Associates
propulsatory ability of
carefully designed to take ad¬
in these sixteen technological rev¬
President, Management Economics, Inc.
search and
fects
be
By MURRAY SHIELDS*
The
flation
private and institutional investors
Research's
.
.
in
the
Pacific
Coast
Stock
Exchange, San Francisco Division.
Mr.
Kellerman
stockholder,
is
director
a
and
voting
Execu¬
tive
Vice-President
of
Bishop
Securities, Ltd., of Honolulu, Ha¬
waiian Islands, upon which
firm*
he
will
confer
privileges.
his
membership
Volume
Number 5654
1£6
.
.
.
The Commercial and Financial Chronicle
(181)-
sored
IBA Presenls Booklet
Public
Of Member Ads,
Utility Securities
WASHINGTON,
have, during the past decade,
ers
progressively
Pacific Power & Light Co.
h
Pacific Power & Light, with an¬
nual revenues of nearly $50 mil¬
ing
lion,
building a
third hydro unit at Merwin, with
45,000 kw. capacity, at a cost of
only $5 million; and also a 100.000
kw. steam plant (using an adja¬
(also
water and tele¬
to a very la^ge
supplies
steam
electricity
heating,
service)
phone
in the Pacific Northwest. The
area
electric service
about
covers
area
13.000 square miles, with a
lation of well
of
the
popu¬
1 million. Some
over
larger communities served
and
Portland, Ore.; W^lla Walla
Yakima, Wash.; and Casper
and
Laramie, Wyo.
are
Sources of all
revenues
by states are about as
follows: Oregon 61%, Washington
20%, Wyoming 12%, Montana 6%,
and Idaho 1%.
enues
arate
its
began
company
tions in
rev¬
from sales of electricity.
are
The
About 95% of
opera¬
1910 with four small sep¬
systems and has added
new
properties from time to time.
The
most
important
(in
1954-
55)
properties
were
owned by Mountain
lin
additions
recent
States Power
Oregon, Montana, Wyoming and
Idaho, and those of Western Pub¬
lic
Service Co. in
Wyoming.
activities
Business
pany's service
area
in
the
com¬
highly di¬
are
versified, including lumber mills,
plywood
mills, pulp and paper
mills,
hardhoard
a n d
particle
board plants, oil wells and refin¬
eries, oil pipeline pumping sta¬
tions, commercial fish packing and
reduction plants, beet sugar refin¬
eries, flour mills, creameries, meat
packing plants, railroad shops, ir¬
rigation
pumping installations,
fruit
and
vegetable processing
plants
and
hop
and
drying-
nut
The
company
portant
im¬
two
owns
hydro
electric properties
Yale) and 16 small
units, the total rated capacity be¬
ing 236,000 kw.; and also a num¬
(Merwin
'liie
cent
esti¬
is
is also
in
mine
Wyoming)
to
million, both projects to
completed bv the end of next
be
$25
A
year.
transmission
million
$7
line will interconnect the company
with
Montana
Mon¬
and
Power
is, therefore, going
company
through
period of rapid growth
a
in
plant, total construction ex¬
penditures being estimated at $56
million this year and $64 million
total of $120 million
compared with net plant account
next year—a
of $202 million at the end of 1956.
In the two years
about
need
the company will
million
$60
new
after allowance for
money,
pres¬
ent
equity financing and bank
Necessity certificates al¬
lowing
accelerated
amortization
have been obtained on four proj¬
loans.
ects, and during the five-year pe¬
riod
total
deferred
proximate
amount
will ap¬
taxes
which
off
million,
$25
will
be
used
to
pay
result
a
tion and
of
heaw amortiza¬
depreciation the
comnany
expects dividends this year to be
about
tion
the
Yale
Amortiza¬
project will ex¬
but amortization
projects will more than
next year,
pire
new
on
"tax free."
65%
of
that
forts
of
c
oinmunity
estment
plants with
rated.capacity of 100,000 kw.
Of the total electric output in the
12 months ended April 30, 1957,
about
Capitalization
35%
generated at
was
the
company's hydro plants, 63% was
purchased (largely from Govern¬
ment hydro projects) and 2% was
generated
by steam and diesel
units. The company is a member
the, Northwest
Power
stockholders
chased
Millions
been
Association
support
of
$237
other
1955__
utilities
take
amount of power
under
20-year
1953__
1952.
substantial
a
Paid
$2.10
$1.50
1.80
1.35
28
-
The
from Bonneville
_
include
America.
observation,
attention
In
of
IBA Member
Ad¬
vertisements," the July, 1957 issue
of which is now being mailed to
brief
A
1.54
1.25
25
-
1.13
22
-
was
of
inaugurated
1949
at
bers
did
a
time
little
by
when
if
the
IBA
many
in
amounts
to
of firm
private
decrease
purely informational type, such as
cards,
new
issue, and
stimulate
increased
to
for
1.10
20
-
15
stock
h^s
been
selling
re¬
so-
no
firm
remaining after 1963.
Thus
utilities
to
years,
with
to
of power
sources
review
of
develop
new
about
a
ing
than
includes,
on
the Swift River.
a
1949
in
is
now
deferrals
12c tax
to
South Beverly
398
Drive,
mem¬
Pacific
With W. G. Nielsen Co.
(Special to The Financial Chronicle)
BURBANK,
Calif.
—
James P.
Underwood has been added to the
staff
of
W.
G.
Nielsen
Co.,
Report on
a
radio program spon¬
IBA member.
Two Named Directors
sored by an
publication of
The IBA through
over
"Reproduc¬
300, adver¬
clude the various organized groups
in
the
such
as
community,
the stock exchanges (and
investment
NEW
-
rectors
tion
of
has
Michael L.
Sightmaster
been
uorpoxa-
announced
Kaplan, President.
or a solicitation of
only by the Prospectus.
for sale
buy .securities. The offering is made
an
offer
Light Company
(not
(Par Value $6.50
nor¬
&
these
Common
shares
of 204,000 kw.. while the PUD
be
evidencing rights to subscribe
issued by the Company to holders ol its
P.M. Eastern
fully set forth
subscribed for
forth in thei Prospectus.
may
be offered by the
Purchasers
as set
CITY, Mo.-Arthur S.
Stowers
with
now
Subscription Price to Warrant Holders
$28
per
Share
tSnecial to The Financial Chronicle)
will
unit
smaller downstream
will
Stock, which Warrants will expire at 3:30
Julian Francis Adds
generat¬
build
Share)
Transferable Subscription Warrants
for
Co., 312 West 46th Terrace.
The company
dam and
per
Daylight Saving Time, on August 1, i957> as is more
in the Prospectus. Any shares which shall not be
KANSAS
BEVERLY
HILLS, California-
U
staff
of
Julian
Francis
with 70.000 kw. capacity, the whole
to
project
obtained only from such of the tenderlawfully offer these securities in this State.
Copies of the Prospectus may be
Michael J. Amore has been added
the
signed and others
&
as may
Co., 291 South La Cienega Blvd.
be
to
1958.
end
of
pav
about
74%
of
a^d the PUD 28%.
allocated
until
own
all
it has
tain
the
The
the
cost
by
total
basis,
will
PUD
at cost
company
Ray Hommes Adds
Power will be
to
the
sell
com¬
will a!«o main¬
operate the PUD plant.
The cost to the company
(includ¬
Lehman Brothers
Eastman
Dillon, Union Securities & Co.
(Special to The Financial Ciihonicik)
but
developed sales to its
nower
and
the
will
same
customers the
its
pany.
on
company
completed
The
BEVERLY
Eticttne
Ray
S.
HILLS, California—
D'Artois
Hommes
Camino
formerly
Drive.
&
is
now
witli
120
Mr.
Bear, Stearns & Co.
East
Co.,
D'Artois Mas
with Boren
Leonard B. Schneider.
&
\U
362
Today":
Common Stock
credits for settlement of in¬
taxes for prior vears for less
amounts provided in those
Ruppenthal is
con¬
& Co.,
better
and
more
Pacific Power &
With Stowers Co.
ing station with installed rapacity
a
HILLS, CaliforniaBarnes
East Olive Avenue.
"Business
274,000 kw. bvdro project
will construct
A.
CSrocial to The Financial Chronicle)
and
Utility District No 1 of Cowlitz
Countv, covering joint construc¬
a
BEVERLY
William
Coast Stock Exchanges.
inaugurated
This announcement is not an offer of securities
years.
contract with Pub¬
lic
tion of
Daniel Reeves Adds
(Special to The Financial Chronicle)
bers of the New York and
a
dividual IBA members.
making available
The current issue of
tions"
come
Bonneville
the
Pacific Pcmmr
4,
Light <dgned
128-page
a
signed to publicize Chicago as
a financial center benefits in¬
In this way a clearing house
the exchange of ideas, mutual
in the next few
replace
June
analyst with the same company.
yield is about 5.2%.
power.
On
drug and
security
a
malized) and about 11c represent¬
become imnerative for the
private
as
376,600 Shares
the
it
1960,
ethical
in
„
Clause,"
power
has
Banking.
Forgan & Co.. and had
s°curltms
chemical
Program of "Chicago Tribune" de¬
members and others in the securi¬
try.
the In¬
specialized
Institutional Advertising:
effective advertising by
more
most recently
representative
institutional
with Glore,
advertising.
business
and
a
Advertising:
stimulate
other notices. "Reproductions" was
designed
general part¬
Wall
Street, New York City.
r%as
in Roosevelt & Gourd, 37
ica
using uninspired copy of the
other
an¬
of: Henry
Bankers Association of Amer¬
mem¬
advertising,
members were
many
has
admission
the
fleeting reference to the
program
of the
Investment
Share earn¬
ings
for the
12
months ended
April
30 were
$2.15, including
power
utilities
in
Roosevelt
Jarrms
nounced
nected with Daniel Reeves
and
any
still
Vice-Presi¬
'Times'," prepared by Burton
Crane of the "Times" staff,
"Reproductions"
18
1.61
__
available
will begin to
"Preference
Adds H. B. ThsutpsQii
P.
Advertising in the New York
21
1.64
...
under the
agencies
power
called
/
book, "A Century of Financial
Association members.
Publication
Miller,
Sales Manager, The
stitute of Investment
Financial
se¬
Mr. Thompson was
address by Ed¬
Ohio Company, before
published by his Committee, "Re¬
productions
W.
dent and
the
an
securities,
of
markets, and investing.
Roosevelt & Gourd
an
Excerpts from
Mr.
to
for the
na¬
improve, public
to
7f.ew Issue
32 -27
cently around 31, and based on the
lic
curities
educational
and
designed
understanc ing
dealing
promotion,
The current issue in¬
current dividend rate of $1.60, the
but
notified
ture
Approx.Ranpe
the
been
institutional
and
Advertising Effectively
pictorial record found in bulletins
to
that,
because of increasing sales to pub¬
has
company
contracts
appeal to this growing mass mar¬
ket.
Much of the copy is of an
text, and
the most
articles
advertising
addressed
are
small investors to
and
24
..
1954.__
Light and1 fou'*
eye¬
new
100
has
Earned
__
have
They
sprightly
captions for
ward
his
of
directed
Mead
follows in recent years:
as
arouse
"Reproductions"
to the
33
79
record
stock
common
attention,
in
Securities Business:
tisements representing copy spon¬
__
Total
The
j
Pacific Power &
10
Common Stock Equity
is also pur¬
Washington Water
Power.
57
23
(4,141,000 shares)
Get
business
newspapers
provided impetus.
Carroll Mead, Mead, Miller &
Co., Baltimore, Chairman, Educa¬
tion Committee, Investment Bank¬
W.
ers
and
Many of be exhibits published
ner
nation,
Companies,
ROCHELLE, N. Y.—The
"Reproductions" is only one of a election of Benjamin McAlpin, Jr.,
number of agencies that have been
of Bache & Co., New York, and
basis lagging in their advertising efforts important factors responsible for Louis Lerner of Lerner & Co.,
might emulate the more advertis¬ the metamorphosis in securities
Boston, Mass., to the Board of Di¬
s
%
ing-conscious houses.
advertising.
Other-? agencies
in¬
$135
Preferred Stock
power
from
l-for-10
a
Long-Term Debt
1956__
Some
on
new
at 28:
it also buys power in Wyoming
from the U. S. Bureau of Reclama¬
tion.
forma for
pro
to
B. Thompson
the
bank
brain picking,, was provided with
loans and the current off^"g of
the hdpe that dealers who were
376,000 shares of common stock to
as
Pool,
which ties in with Bonneville, and
follows,
is approximately
extent
vertisements, the following items:
of
W. Carroll Mead
by members throughout the coun¬
tax-free during 1959-64.
agencies
according to
days
non-tombstone exhibits submitted
might be
vertising
generally.
cludes, in addition to reprinted ad¬
earliest
ties business by
dividends
all
the
has been made in
art,
bulletins
with
the
take up the slack, so that it is pos¬
that
indicates
progress
In addition to reproduced ad¬
vertisements, the "Reproductions"
the
n
v
tisements
which
adver¬
of these
part.
ef¬
Investment
representatives of the
arresting
the
of
and their respective members. Ad¬
have also
Perusal
catching
charac¬
i
"Re¬
Exchange) and the National Asso¬
ciation
exhibits.
stimulate action.
promotion
in
published
particularly the New York Stock
productions"—all told, about 2,500
interest, provide information, and
un¬
terized
their ad¬
members have had
vertisements
copy
and
bank loans.
As
other
IBA
promotion:
"tombstone"
inspired
organiza¬
member
attempt^ to sell and reflect the
present:day concept of advertising
marked
contrast to the
and
115
During the past eight years,
approximately half of the 800-odd
adopting modern advertising tech¬
niques.
They clearly reveal the
advertising,
in
since
tana Dakota Utilities.
The
manized
u
their approach
to
$56 million.
company
coal
cost
and
ber of steam and diesel
of
mated at
line)
unmistakably
and
sible
plants.
total
transmission
a
C.—Invest¬
D.
bankers and securities deal¬
ment
By OWEN ELY
by
tions.
21
Co.
and
July
II,
1957
Dean Witter & Co.
by
22
The Commercial and Financial Chronicle
(182)
Trend
Opposes Centralization
Frear Bill Would
Unnecessarily
hands of the Federal
NAM
President, Thomas A. Edison Industries of McGraw-Edison Co.
Chairman, Executive Committee, Nat'l Ass'n of Manufacturers
NAM official presents the latter organiza¬
Edison head and
tion's
against S. 1168 which
case
|
corporations having
available and "that isolated instances of
should
[not] be used
arbitrary,
unwarranted
an
penalty
1168, which would
Government
the
is
sary
ble
be
desir¬
A
little less
submitting
We
In
a
on
I
G.
Henry
Riter, 3rd
up-dated version of
My statement was
opposition to S. 2054 largely for
an
the Frear Bill.
same
are
we
op-
^ntinfSTthS
anniw
^moposah
basic
same
that
reasons
NAM does not believe that
iso-
tion should be
a
as
unnecessarily
nesses not seeking capital and not
wishing to enjoy the privileges of
listing on a national securities
exchange. S. 1168 is considered to
an
unnecessary
burden.
Says Information Is Revealed
Businesses
has been the
ple
realize
the best things
that
they
as
found
no
can
one
of
the
Investment
same
experi¬
is
made
Dealers
available
pL,blic through
sucb
service,
various
Moody's
as
Standard
investors
It
is
well
where
&
to
serv-
Investors
Poor's
as
much about
expended
to
make
financial reports readable, to enattendance
at
annual
meetings and to bring about a
widespread knowledge of company operations.
"
It is respectfully submitted
that,
for the most part, financial in-
formation concerning corporations
is available to shareholders. Man-
continually
to
and
to
hnnk«"
known
that, in
cases
issue
debt
theh older s
representative
<JaA
.
.
10QQ
JwJS i? wakJ
B
j..,,
ad^?"^C11" °/nation re^1
SeC«lr 2°.?
Secunties Exchange Act
pthirnf
against unk j.
q
RoS
dles mar~
aS* beyond the
nn£nam*PQ wmfm ul Sesf nts;
Pannes .wouM.be affected that
fhrnmfh th^ «*£
new capital
Fv
ever-increasing
firm. Industry has
felt this
can best be
accomplished
through providing the investing
public with confidence in manage-
ment.
Great
made by
strides
have
i
i
business
management's
solutions.
in
and
the
in
logic
Indeed,
becomes apparent
problems
explaining
in
seeking
each
vear
vying
only to simare
plify
their financial statements,
but to make them so
eye-catching
tnat they almost
compel the atten-
tvf sha,'eh5)lders- In fact,
nation-wide contests are now held
to select the most
outstanding an-
reports.
NAM
endorses
the
sa*e °f secnrities
desirability
Currency,
Washington,
in
companies
are
*
•
seeking new capital or list™USt meet cer*a"i require-
i" ;hl.
J,
c.
,.
nA„
...
.
undertaking at the start
an
Therefore, if the principles
."
.
embodied in this bill
are
accepted,
prevent its
ultimate extension to smaller and
there
is
nothing
to
companies.
Simply because a company has
managed to grow and to attract a
this appear to be an
unwarranted
011 progress?
Requirements of S. 1168 would
penalty
impose serious financial burdens
upon smaller businesses. An esti¬
mate has been made that, even
for
the
smallest
companies, an
•
be
These costs
would
have
to
borne
by the taxpayers gen¬
erally which would include the
companies affected by this bill.
Expenses of this magnitude can be
considered in no light other than
as
large at a time when wide¬
demand
spread
for
economy
is
t
t
Pledge thatf?
^7,1ur,
s anc!
which have been set
QpW1i-?-y
SnguGSS an5 by tbe
Securities and Exchange Commisu
^
s*on as well as by the particular
exchange. This, therefore, is a
voluntary
i
standard.
u
,
A
standard
^
would apply to corporations
having
or
more
debt
than 750 stockholders
securities
million
level
present
viewed
will bring forth
interest
of
rates
is
quite moderate in com¬
with previous prosperous
periods and present rates in other
The
mistaken
of tight
persist
even
though, the bank points out, "Fed¬
and
easy
eral
officials
Reserve
fact
mentary
threat
that,
others
and
full
human
a
material
and
artificially
cally
easy
employment
Yet
the
belief
widespread,
is
with
still
of
resources,
money
synonymous
that
the ele¬
time of
and
at
substantially
practi¬
inflation.
to
seems
be
in high places,
good existing con¬
be, easy money would
even
however
ditions may
*
"This is the easy-money fallacy,
one
of
the
oldest
in
economic
thinking,
trous
in
of
one
the
one
cate. Centuries of exhortation and
even
perience
about
the
centuries of bitter
more
have
simple
ex¬
failed
to
bring
understanding of
general
a
fundamentals
role of money and
new
and
smaller
enterprises with no unnecessary
impediments being permitted.
NAM
respectfully
1168 not
be
urges
that S.
reported out of Com¬
of
credit in
free
a
How
Tight
Is
Money?
'*
easy-money
"The
fallacy,
as
it
exists in the United States today,
to
appears
be
compounded
of
a
of
more
outstanding
situation, j Mistake Num¬
is the notion that the
One
and
7M»%
rate
in 1920. Before 1929, a
4% was exceptional.
the 3%^ Federal Reserve
below
As. for
has
in
than
Samuel
B.
joined
Franklin
the
&
staff
low rates
and
of
,the
rates of the
periods
Reserve Bank
the
set
a
level.
Only in
abnormally
depression years
the
artifically ■ maintained
war and early postwar
the
do
rates
present
ap¬
Company,
215 West Seventh Street.
Nor
is the
United
structure in the
rate
States
in relation to
high
are
all
Reserve
below that
The fact
over
Bulletin,"
the world
that
are
only
United
in the
is
experienc¬
con¬
With Leo Schoenbrun
(Special to The Financial Chronicle)
the
and $2 mil-
lion of assets is
quite arbitrary.
over-all
cators
at
their
indi¬
statistical
present
levels,
it
would be difficult indeed to argue
that tighter money has adversely
LOS
ANGELES, Calif.—Stephen
R. Lanzit is
now
with Leo Schoen¬
brun, 1385 Westwood Boulevard.
at
by
by
an
the
Reserve
policy
the
without
inter¬
ference
by either the executive or
legislative branch of the Govern¬
ment.
Is it the
that
in
has
Federal
made
Reserve, then,
tight? Not
money
positive
seasonal
sense. Except for
variations, the amount of
Federal
Reserve
any
credit
outstand¬
Federal Reserve has played an es¬
credit
increased.
pened
to
the
substantially
has hap¬
market is
would / have
what
perfectly free
a
mar¬
time of very active busi¬
a
ness.
What
money
.
' "
y
It is not
tion
ness
that
is sometimes
vietiin of tight
starts
busi¬
a
cited
as
a
money.
financed. by
insured and VA-guaranteed mort¬
gages,
rates
on
which
are
fixed
a
is
two
existed
has
as
for
the
would have been
policy of inflation.
The
years,
same
neutrality
that
has
characterized monetary policy has
also
characterized
fiscal
policy.
The
Federal
budget
has
been
brought into approximate balance
and held there.
At the fiscal
level,
at the monetary level, the mar¬
ket has been left very much to
as
If it
has become tight,
it is
along with human
because money,
material
and
at
close
01*
ment
resources,
the
to
ceiling,"
has
not
because
central authority has made it
Who
Benefits from Tight
Mistake
notion
Number
that
uation
tight
is
the
a
sit¬
is
money
any
tight.
Money?
Three
which
from
been
"full-employ¬
banks
and
other financial institutions prosper
at the expense of the
Government,
business,
eral.
A
the people
and
in
gen¬
moment's
objective con¬
sideration is enough to show how
superficial
and
inadequate this
view
is.
Which
the
an
is
Government
the
costly to
taxpay¬
increase in interest
public debt
or
an
on
the
inflationary ad¬
in prices that raises the cost
vance
of
more
and
government all along the line?
Which
is
injurious to the
credit, a decline in
prices of Treasury ob¬
ligations or a shrinking dollar that
makes savers fear to buy Govern¬
more"
Government's
the market
ment
than
bonds
wipe
lest
out
interest and
inflation
the
value
leave them
more
of
the
with less
purchasing
by law.
It
such
last
ers,
affected American business..
Yet housing
conventional
X. Rickinger has been added to mortgages, which have been exthe staff of Paine, Webber, Jack¬ poseXt° the full impact of the rise
in interest rates, have not declined
son
& Curtis, 626 South Spring
significantly. The decrease has oc¬
Street.
curred in starts financed by FHA(Special to The Financial Chronicle)
LOS ANGELES, Calif. —Frank
by
established
supported
the
System. Mone¬
has been determined
Federal Reserve, an in¬
Federal
tary
countries
Housing construction is
Paine, Webber Adds
not
and
itself.
high.
pear
With
of
rate
discount rate, never until 1930 did
siderably higher than it has here.
LOS ANGELES, Calif.—Ann D.
interest,
of
artificial
Treasury
country
terest rates in most countries
Plunkett
going rate
strictly correct, there¬
is; suffering from exces¬ fore, to say that the Federal Re¬
serve
has pursued a tight-money
sively tight money: Actually, the
present level of interest rates is policy. It would be more accurate
to say that, the Federal Reserve
quite moderate for a time of active
business. Rates on commercial pa¬ has refrained from pursuing a pol¬
per,, for example, average about icy of artificially easy money, a
4%, as compared with 6% in 1929 policy which, in a business situa¬
ber
ing the same tendency toward in¬
Fitzgerald & Co., Inc., 232 North flationary overexpansion of credit,
Canon Drive.
a
tendency which has carried in¬
(Special to The Financial Chronicle)
other borrowers, has sold its se¬
curities in the open market at the
ket at
States.
Joins Samuel Franklin
Tight?
it was more than six
years ago
that the Treasury relinquished its
control
of
the
money
market.
Since
then
the
Treasury,
like
ing the origin and meaning of the
current
Money
tight
by governmental policy. Actually,;
happened in
five
(Special to The Financial Chronicle)
BEVERLY HILLS, Calif.—John
M. Lishan is now with Cantor,
Makes
number of mistaken-ideas regard¬
"Federal
With Cantor, Fitzgerald
Who
Mistake Number Two is the idea
that money has been made
sentially passive role, simply al¬
lowing
the
money
market
to
tighten itself as the demand for
those elsewhere. Of the 32 foreign
central-bank
rates
listed
in the
mittee.
to
ing has remained almost constant
for two years. This means that the
the
economy.
that
encouragement must
borrowers
disas¬
most
historical effects, and
of the most difficult to eradi¬
with
to-
VA
and
tive to lenders.
its
below
every
FHA
dependent agency,
make them better.
comparison
given
tial
await an upward' adjustment of
their rates to levels more attrac¬
notions
money
rate
be
more
countries.
that,
vigor,
banks and other
(4)
goods and services.
more
as
parison
Federal
omy
(3)
July issue of "The Guar¬ ability or unwillingness of home
a monthly business buyers
to pay higher? rates, or
and economic review of Guaranty whether it should not be ascribed
Trust Company of New York, the rather to the preference of
poten¬
any
if the United States econ¬
is to continue to grow with
tight;
anty Survey,"
apparent throughout the country.
We feel it is generally agreed
+
v
•
~
ment.
easy-money
financial institutions prosper from tight money at the
expense
of Government, business and people in general, and
t
connection, it should be
1^,111°Wa™1*
r°+ c°mpany
u
S*r°C> llsted ?n a.11
i
bS""/ and hands °f the
d.
manner m
exempted or not
exempted. Under those Acts, com¬
panies seeking new capital or list-
$1
for?tra.';oco^'i««
nor
Thpn.li advantages of listing,
Jb Present Acts seem to provide
logic
the
which
it
that increasing
numbers of corporations
with each other not
nual
some
___
been
industry in educating the
investing public
of
not wise to undertake too burden¬
r
some
we are
.
r^nrri
nnH
(1)
Government makes money
the
is evidenced'; inflationary
felt it was
.we
«
f
satisfy
anticipate
those
bring about an
interest
in
the
to
welfare of the
.
f&i!Snn
?
fwMtinnc y^l
,
agement is highly responsive to
the wishes of its shareholders and
even
by the comment ".
and
denlures under wldch such seeurN
are
wishes
This
levels.
porary
Service.
corporations
do from
courage
and
previous
financial
on
present
supposed
tight money situation. Refutes claims
suffering from excessively tight money; (2)
limitations may be;
have
patiently
spelled
out
the
considered only as expedient tem¬
nature of the present world-wide
.
affairs of their companies as
possible. To accomplish this, great
seeking
the
expenditure of. from $10,0(50 - to.
815,000 a year would be involved,
^ny States require that annual to secure the type of accounting
and legal assistance necessary to;
financial repo^ts be submitted-to
comply with the intricate SEC.
£ ? V* r requirements.
'
1
nf
S. 1168 will, without question,
p
„ r
ni ^ « r
S? <fn
put
aq,
additional
supervisory:
tj
and except for burden&nd expense on the Securi¬
v
nre
b"le and imnroner our- ties and Exchange Commission by
D0
' M'nv states even nrovide enlarging the jurisdiction of SEC.
f0r inspection bv other interested In testifying with, respect to VS. '
i°. ..ln.sFe-11J?y °meUntei estcd
2054, the Chairman of the SEC
persons, including creditors.
estiinated such costs at $500,000 a
Wants SEC Law Unchanged
' year plus the cost of initial equip¬
Fitch
the
is
testimony
that
regarding
notions
and numerical
mine. More¬
as
the citizens of their
communities know
efforts
I
bills
in
smaller
great deal of valuable in-
a
jces
{hell: 0Z1Peholde0rs Vietheir '"em*
ployees^^nd
that
ni? rllrk
used
basis for
burdening
busii'A
lated instances of lack of inform a-
be such
other
formation
t
was
of
over,
I re-
as
of
expressed
in
confident
am
ence
205 4,
S.
experience
Dealer.
that:
;
been
has
securing adequate fair number of shareholders, must
information from companies whose it be singled out for additional
securities are held by the public. Government regulation? Does not
Currency
—
previous
my
difficulty
Banking and
which
achieved
be
can
Investment
an
Senate Commi ttee
than
through Government regulation.
statement to
in
these lines.
investing public will
adequately
informed
more
efforts
ago, I had the
privilege of
the
various
through the continuation of these
than two years
call,
the
and
performing nota¬
are
service along
believe
able.
on
counselors
publications
neces¬
or
Fear
number of shareholders in
business. Industry, in-
vestment
We do
believe
not
this
on progress.
American
1VT
chartered and the
is
other to the SEC.
of advancing the education of the
American investor and expanding
regulations
over new segments of
industry is
opposed by National Association
of Manufac¬
turers.
corporation
view
Senate Bill
firm under S. 1168
a
subject the company to two
methods of reporting. One would
be
to
the
State
by which the
beyond the original concept of the SEC acts,
goes
and is
extend
Inclusion of
current price
being produced and
In the
of*
would
a
as
benefits
the
bureaucratic growth are not
proportionate to the costs.
lack of information
a
that
sides
all
such
basis for unnecessarily burdening
general." Mr. Riter believes that the proposed act
business in
is
on
mistaken
money
is ample evidence
There
interest.
leading banks attributes
virtues and the present
bureaucracy and the resulting tax
burdens
are
not
in the public
more
nation's
the
critiques
.
or
ment. The development ol a great
SEC
to extend
proposes
than 750 stockholders,
or
debt securities of more than $1 million in the public's
hands, and $2 million of assets. The former NAM President
refers to his previous investment dealer experience in maintain¬
ing that for the most part corporate financial information is
coverage over
feel
not
does
proper
of
One
inflation to insufficient goods and services
Government.
this, to be a
healthy development.
Increasingly, the rights of States,
and localities, and of firms and
individuals, have been absorbed
and usurped by a central govern¬
By HENRY G. RITER, 3rd*
Thursday, July 11, 1957
.
Guaranty Trust Assails Easy Money Fallacy
marked
a
tendency, over the years, toward
the centralization of power in the
Burden Business in General
'}■
been
has
There
.
.
at
least
debatable,
there¬
fore,
whether
the
decline
can
properly be attributed to the in¬
power than they had
beginning? Which is worse
business, a rise in the cost of
at the
for
borrowed
money
or
an
unstable
Volume
186
that
currency
tions
Number
all
upsets
The Commercial and Financial Chronicle
5654
calcula¬
intelligent plan¬
ning impossible? Wriicn is more
damaging to consumers, ,an in¬
in
crease
ments
or
instalment
their
about
What
of
pensioners,
trust
proceeds
funds,
of
saving.' They also
of
the
lenders of money, and they are the
most
101.95%
of
all
of
victims
the
yield
inflation.
As
far
is
for
nothing. Sav¬
ings institutions that receive
higher rates must also
rates
attract
to
mercial banKs
to
corporate purposes.
by
borrowing from the Reserve banks
at
higher rates
debentures
The
by selling se¬
lower
or
general
Telegraph Co., and for
&
credit
only
on
on a
obtain reserves
can
further
extend
the
of
sale
repay
advances from its parent
organization, American Telephone
higher
Com¬
pay
money.
The
4.43%.
award
won
to
bid of 100.511%.
Net proceeds from the financing
will be used by the company to
July 9
lend
they
money
obtained
not
approximately
at
interest,
accrued
and
1992,
1,
debentures at competitive
is sometimes lor-
gotten that the
duet July
underwriters
institutions'
financial
as
concerned, it
are
Co. Inc., yes¬
Stuart &
bentures,
Helpless
Telephone Co. is
curities at higher yields and
and facilities for private line
telephone and teletypewriter use,
of furnish¬
local and toll telephone
service, in the State of Wisconsin.
On March 31, 1957, the company
had 970,843 telephones in service,
of which approximately 60% were
in the Milwaukee,
Madison,
Racine
areas,
in
and
furnished
be
to
re¬
service
Toll
Milwaukee.
For
the
by
company
companies,
connecting
service
is
also
points within
showed
other
total
and points
of
include
also
teletype¬
the
ended
With Walston & Co.
Walston &
Co. Inc., 120 Broad¬
New York City, members of
New York Stock Exchange, have
announced
that
David
Robbins
way,
company
has joined the firm
revenues
representative.
operating
as a
With W. G. Nielsen
(Special to The Financial Chronicle)
M. L. Weiss Partner
-
Judah
ted to
&
Kaplan has been
:
admit¬
partnership in M. L. Weiss
Co.,
123
members
Greenwich
of
the
Street,
American
Stock
BURBANK, Calif.
Connell
has
lime oi
a
It
natural and
with McCormick
&1
Co.
Joseph Faroll Branch
With J. B. Hanauer
LAKE
KIAMESHA,
HILLS, Calif. —Al¬
fred L. Alexander has been added
to the staff of J. B. Hanauer &
140
writer exchange service and serv¬
a
branch
Co., Hotel
South Beverly Drive.
office
Mark L.
in
the
under
Greif.
—
neces¬
Stabilizer
*
Almost all of the mistaken ideas
regarding tight money and easy
arise from one basic error,
namely,-the failure to understand
that an interest rate is a price;,
money
A
that, like other prices, it performs
vital functions in
free economy;
a
and that it cannot be manipulated
.
i Interest rates preserve the
bal-
,
f*
,
than
with
impunity,
other, prices
more
any
.
can.: :•;
,.
•
.;
V
\ /..u
,
.
;
-
saving and invest- f
meht.'
Artificially
low
interest.
rates; swell f investment'; demand
arid at the same time discourage
f
between
ance
and
saving,
^ they
can
tained only by constant
be main-, /"
injections
.ti;;■'(■((:
-V
'
market.
desire
consumers
to
buy
than
services
investors
and
goods
more
can
"■
Goods
Tight Money and Tight
When
■'
into the money
of additional funds;
and
be produced by
existing plant, labor force, and
productivity, they find their buy¬
capacity limited by the fact
that total income equals total out¬
ing
put, and no more. When they try
to
borrow in
order to increase
purchases, they find that
is tight. They tend to con¬
that
something
is wrong
with the money market, whereas
their
money
clude
in
not
reality the basic difficulty
a
shortage of money but
limited supply of goods
is
a
and serv¬
ices produced.
at will
Money can be produced
governmental authority, but
goods and * services cannot.
The
factors of production can be in¬
creased only gradually. If the
money supply is increased faster,
the economy suffers from a situa¬
by
VISIT
MONTANA-"THE
BUTTE,
RICHEST HILL ON
EARTH"The
AND
SO
SEE
HOW
ESSENTIAL
ANACONDA COMPANY MINES
THE
TO
THE
NATION'S ECONOMIC
THE METALS
AnacondA
STRENGTH.
chasing
goods," and prices in gen¬
tion of "too much money
too few
eral
r
are
forced higher,
Because
have
men
this,
of
clung
that more money
Company
'♦
.;
and
because
interesting part of
to the delusion
will bring forth
take in the scenic
of
intermittent
money
Beautiful
can
be
an
you
will be within
easy
world's most spectacular producers of
copper
and
'
The American Brats Company
:
:
Anaconda Wire & Cable Company
Andes Copper Mining Company
:
•
;
: :
■
Chile (Copper Company
Greene Cananea
Butte sits atop a
totaling
some
veritable honeycomb of tunnels, shafts and passageways
2700 miles in length. More than 6500 of its residents
are
employed by Anaconda in extracting the seemingly inexhaustible mineral
present-day
its
is
as
vacation itinerary. This summer if you plan to
other important metals.
preciation,
with
all the blind
injustice, trade disorder, and in¬
dustrial prostration that follow in
its wake. Yet the ancient fallacy
refuses to die. The outcry against
tight
well
spectacle of Yellowstone Park,
70 years one of the
over
de¬
currency
your
as
driving distance, of Butte—home of The Anaconda Company and for
goods and services, economic
history through the ages is a rec¬
more
ord
Seeing the America that's Bountiful
wealth of
a
manifestation.
32 square-mile area whose output increases year
after
year.
Copper Company
Anaconda Aluminum Company
'
Anaconda Sales Company : ( ( (:
international Smelting and
.
Refining Company
On guided tours you can go underground in the Kelley Mine and see how
Manheim Director
W.
E.
Linen
Luke,
Thread
Co.,
Inc.,
15,000 tons of
of The
Chairman
of
New
York, has announced the election
of Frank J. Manheim to the com¬
Mr.
Manheim
investment
Lehman
is
a
partner
banking
Brothers.
firm
I
of
of
can
giant
stand
open
on
a
day
a
are
mined by the ingenious block-caving method.
ledge 500 feet above the floor of the
its mines,
and guide to
The Anaconda
your
ore a
pit operation
the city and
map
pany's Board of Directors.
the
You
now
nearing
on your own
an
new
Berkeley "canyon," illustrated above. This is
a
output of 17,500 tons of ore daily. Or, if you wish, you can "do" Butte,
schedule. The Anaconda Company will be glad to send you a do-it-yourself
memorable tour of the famed "Copper Trail." Simply write the Company at Butte, Montana.
Company extends
a
cordial invitation to inspect "The Richest Hill on Earth" and believes
stay will give you a new pride and appreciation of your America
the Bountiful.
the
—
Concord
direction
for everyone.
Needed
Y.
Joseph Faroll & Co. have opened
feature
A
N.
(Special to The Financial Chronicle)
BEVERLY
healthy economy. Thus it is good
a
the
*
of intense economic
activity, and in such a situation
it is indispensable to the main¬
tenance of a stable currency and
sary
to
Exchange.
ousiness is
and bad for
some
a
James K,
staff of W. G. Nielsen Co., 362 East
Olive Avenue.
He was formerly
very active
for
is
good
others.
—
added
been
The normal tightening of money
not
registered
net income of
and
prices.
at
23
"
conjunction
companies.
months
1957,
$24,139,187
outside
with
Services of the
and
$3,088,649.
furnished between
in
Wisconsin
three
31,
toll
and
the
March
is
throughout most of Wisconsin, in
certain cases in conjunction with
of radio
purposes.
Green
Bay service
approximately 45% being
transmission
television programs and for other
mainly
company
,
are
en¬
ices
for the
ing communication services,
terday (July 10) headed an un¬
derwriting
syndicate
which
offered $30,000,000 of Wisconsin
Telephone Co. 35-year 4V2% de¬
upon
among
are
Halsey,
de¬
tnose
lifetime
a
Wisconsin
gaged in the business
41/2% Debentures
benefit
pendent for their livelihood
the
■.
pay¬
ing?
ciaries
at optional redemption
prices ranging from 110% to par.
plus accrued interest^
Offers Wisconsin Tel.
rise in the cost ol liv¬
a
deemable
Halsey, Stuart Group
makes
and
(183)
57273-B
of
24
The Commercial and Financial Chronicle
(184)
shows
business
Marcus Nadler Finds Boom
Ending,
vails,
A
setback should halt inflation, stimulate
summer
and
no
icies
of
kets
and capital mar¬
expected.
be
can
efficiency, promote increased savings and, thus, according
provide the basis for a sound upward swing to
follow this brief respite and, admittedly, painful correction
the trend
period.
.
business are hazard-
of
conflicting un¬
because of the
ous
Mazket and SEC
economic forces, it is
becoming more and more evident
that the boom has run its course
derlying
The Hanover Bank's consulting people
are
spending freely on
economist, Dr. Marcus Nadler, in food, soft goods and services. Capwriting
on
"The
Economy
at ital expenditures by corporations
Mid-Year"
for
the
June
bank's
monthly
formal
report,
believes
ness
in
in-
busi-
activity
the
United
States may be
:
headed for
sound
large and government purchases of goods and services are
mounting. But, despite the general prosperity, there is a feeling
of uncertainty about the business
outlook
which
changes
almost
from week to week.
a
upward
swing.
"(2) The pattern of the American
According to
Nadler,
is also
]iaS
in
while
sumer
York
Univer-
Nadler
Marcus
and
While
f°r
the
declined
cline
business
in
the
the
week
exceed the
may
has
in
home
has
increased,
hours
been
starts
mortgage
The brief
setback, while it may
be painful to
con-
signs of
Fewer
reduced.
the
tight
some, is desirable
whole, for it should halt
the inflationary
forces, stimulate
productivity and efficiency, and
of
lead to
business will depend primarily
construction.
increase in savings, he
an
explains.
be
to
sure
lived,
moderate and shortthe economy
at mid-
for
is
year
essentially
robust,"
future
near
Dr.
"healthy
and
^~
«.
strong
r
11
Pr^i
employment* f rossN-itinnnl
.
weaker
or
greater than effective
ventory
money
sumer
possible that the decline
summer
months will be
is
the
However, the
than seasonal.
more
demand, in-
accumulation has ended,
continues tight and concredit is increasing at a
rate.
slower
"it
is
capacity
productive
Since
on
economy
of
short
respite,
while
and
moderate
only
brief
duration
A
jt may be
painful to some, is dethe whole.
If this
sirable
on
respite should halt the inflationary forces, stimulate productivity
and efficiency, and lead to an increase in savings, it would lay the
foundation for a
sound upward
activity later on.
trend of business
forces
win Predominate and this in turn
wiu b? influenced by the psychol°sy of management and of the
ultimate consumer. The economy
of the United
Nadler adds.
"Thr.
„
_
Economy Is .Sound
"(3) The immediate outlook for
whether
Any decline in the
is
_
States is one of
Associates Investment
high standard of living and only
holding companies and their sub¬
particular
sidiaries, and in the charter
visions
Public
ruuiw
anr,
riUnnaahi*
^
Codification
of
Principles
and
connection, I should like
to digress for a moment and tell
you
about a novel approach to
regulatory procedure which the
worked
in
out
1956.
On Feb! 17 of that year, it adopted
Less
Pronounced
Forces
Dr.
Nadler
ent, though
at
the
not
end
Wagej
of
the
and
the
e
pronounced
last
year
as
'
the
consumer
ir}cr.e'^d
says.
will
8
of
'
in
prices,
another
Dr^Nad
round
no
chanee
in
Federal Reserve credit
policies untillousiness snows more
business shows more
puiiui.su mi
of
weakness
than
now
pre-
In view of the current levelingw CI :ne current leveling.
process
m
,business activity,
o-change attitude of the
Reserve authorities in
R
regard
tight
policies
money
some
has
to
caused
surprise, Dr. Nadler reports,
Finds Reserve Authorities Attitude
Howeve?Ttanhf;
«^ude
the
edeial
Receive
is
f
easier,
and make money
now
the
inflationary
forces
unabated," he ex-
would continue
plains.
business sentiment. These
no
ri
activity
Reserve authoriwhether the
h
be
nt
cannot
s
sure
c.ecline
inoi
only
is
a
lull
upswing sets in again,
insists.
The
by
"(1)
end
lower
year,
May,
than
is
to
countrv
merit:
at
is
an
drawn
up
pessimism.
at
the
somewhat
the
end
of
last
and
robust.
The
enjoying full employ-
Cross National Product and
disposable income
are
real
question,
stated
as
above,
is
whether the strong or the weaker
** preVaiL
"(4) Although the forces of infiation
at
the
not
are
the
*-i,
st,n
end
of
;
consumer
as
pronounced
last
thev
vear
Hutzler and Lehman Brothers.
debentures were priced
100%, plus accrued interest.
The
at
utility companies such as limita¬
on
unsecured debts,
voting
lights limitation on common stock
dividends, etc.
In effect, these
Statements of Policy represented
tion
Wages
price
are
index
has
yet in sight.
will lead to
codification of certain
on
case-by-case basis
a
modi¬
experience,
and a reappraisal of those prin¬
ciples and policies in the further
light of comments received from
over
period of 15
a
fied
in
the
years, as
light
of
interested
numerous
views
had
dppmabie
prior
that
Aftpr
'at
of
This
the
State¬
development has al¬
brought about substantial
simplification in our administra¬
ready
companv
at
5o3(f% \o
1967.
einkin<*
.
reqUire
the
from
ranging
deSn|
upon
the
issiie
retire
maturity
hv
issue by maturity,
redeem
to
company
'
beginran°
....
,
.
.
.
.
The company in 1956 had total
tial
come
the
cost of doing
despite the
creases
^
l°
busineSs inefforts
great
Productivity.
the
$19,508,000,
latter
equal after preferred dividends to
.
fully
of
aware
the
fact
that
the boom has reached its peak and
that
the
economy
is leveling out.
They cannot be sure whether the
strong or the weaker forces oper-
ating will predominate in the
^.93 per common share.
The business
its
and
of the company
subsidiaries
is
conducted
demand
for
subdivisions
the
volume
continues
of
to
savings.
and
an
than
and
in¬
life,
other
ex-
until
advance
in
required
business-
sibility
over
electric and
Con¬
the
basic
the
by
to
Com¬
not
the
only
au¬
respon¬
the financing of those
gas utility and natural
pipeline companies which are
The State pub¬
commissions, which reg¬
the
rates
charged by the
company
systems.
electric and gas utility subsidiaries
of
registered
service
customers,
for
systems
which
.
the
they provide their
also
jurisdiction
have
over
the issuances of their securi¬
ties.
The Federal Power Commis¬
sion
has
certain
jurisdiction
over
SAN
DIEGO,
Salik has formed Fleetwood Secu-
rities
Corporation with offices in
is
pays
as
on
stocks
hy
reg¬
impor¬
an
in
over-capitalized with debts, its '
the
port
In
led
do
not
overlap
sions
of
or
Commission.
or
our
by mandate of the
The pobcy guide lines laid down
by
the
the
courts
Congress
an
1(b).
.
This
of
as
the
over-all
the
in
a
must
Power
national
will
not
tegrity
so
rities
of
holding
the
secu¬
companies
and
affiliates and the interests of con¬
of electric energy and na¬
sumers
tural
or
and
manufactured
gas,
are
be adversely affected.
may
"When,
.
control of such
.
.
.
.
."
com¬
panies is exerted through dispro¬
portionately small investment
and
.
there
omies
The
".
when
.
in
title
the
.
the
shall
be
of
."
econ¬
directs
provisions
that
this
interpreted to meet
of
eliminate
and
enumerated
as
tion."
lack
.
.
re¬
raising of capital."
problems
evils
.
.
other
any
further
all
.
.
is
the
Act
in
in
this
the
sec¬
(Section 1)
Ever
since
the
pany Act became
Commission has
Holding
Com¬
law in 1935, the
consistently
registered
that
holding
systems maintain strong
structures.
As stated on
urged
company
capital
occasions:
numerous
"A balanced
capital structure provides
siderable
of
measure
raise
nomically,
new
money
avoids the
and
deterioration
of
con¬
a
insurance
enables
bankruptcy,
the
eco¬
possi¬
in
service
a
decline
if there is
The
SEC
prescribe
not
has
optimum
italization
ratios.
attempted to
ideal cap¬
or
In certain
have expressed the
we
cases
policy that
debt ratios should not exceed 60%
that
and
common
stock
equity
should not be less than 30%.
Nev¬
ertheless, it is realized that these
standards might not be applicable
,
important
all
to
holding
all
under
and
systems
company
conditions.
financing
sys¬
that
it
financial in¬
the
holding company
system as a whole.
While I could spend hours dis¬
cussing all the problems which
of
that
interest,
just the
designed
impair the
public
system
holding company
be
part,
interests of investors in the
Capitalization
of the entire system. The
tem
in
hereby declared
earnings."
as
an
and
we
states
section
is
it
.
consumers
individual company.
It must be viewed
which
required to follow
in interpreting the Holding Com¬
pany Act, are set forth in Section
are
to
company
considered
be
problem of
choice
Congress
of the United States.
in
Rather,
holding
cannot
Act.-
How¬
jurisdiction, not from
but
our
it was de¬
signed
to
supplement
and
strengthen
the
jurisdiction
of
those agencies.
A financing pro¬
posal by any company in a regis¬
tered
of the
regulate rates under
duplicate
commis¬
Federal
the
of the abuses
passage
ities and holding companies under:
bility
of the State
capitalization.'
we are concerned with theof capital to the public util¬
costs
ister.
powers
on
pay up
to sup¬
Holding Company Act.
ever,
utility to
Congress did not intend that
to
income
was one
to
stint
even
order
parents
fact, this
We
in
dividend
enough
pipeline companies which are
also subject to the Act we admin¬
gas
must
maintenance
against
pany
Calif.—Charles E.
element
the financing proposals of natural
issuance of securities by one com¬
Fleetwood Securities
it
common
geneerally regarded
subsidiaries
lic utility
program
Charles Salik Forms
which
and
ulatory authorities
tant
spect
is
SEC
The
part
.
The
tight.
Money rates—notably long-term—
upward,
other
manufacturing
and
,
operations,
business,
business
surance
Ratio
Study
In
September 1956, our Division
of
Corporate Regulation under¬
took a broad gauge study for the
purpose
of
visability
of
determining the ad¬
recommending that
the Commission issue for comment
by
interested persons a proposed
of Policy concerning
Statement
Bank of America Building,
money market has remained
moved
financing
life insurance
bank
slowed, the demand for
capital by corporations and politi-
cal
a
its
to
pressures,
the
credit has
ceed
tion
near
they overlook the
can
inflationary
determine
a
enable them
to
the
through 161 offices located in 30
Ft®'01®™.® ^nnpta^anfwitf^
The
monetary
authorities
guide
jurisdiction
The inf,atlol?ary Pressures states, the District of Columbia
C01l.tblue to determine the credit and canada and includes, in addities.
venient
ulate
of
to
annually
of
professional practitioners who
specialize in this field with
associated with registered holding
income of $117,439,000 and net in-
The cost of
vestors, the issuing company, and
the
gas
$1333 000 principal amount of the
^ 'h^ntnrp<3
annnallv
beeinnin"
'
The State¬
also provide in¬
re-
designed
the
°}x
of. Policy
the
provisions
f,]nd
nf
„now
wages
year.
method formerly used.
of
Sinking fund provisions ot tne
^
case-by-case
be
the year of redemption.
-debentures,
the
under
will
prices
100%
re-
many
concluded }ast
sible
election
thev
the
1
June
to
date
fWm-ihlp
nof be
will
Structure
paid
dividends
preferred
are
solicited
been
adoption
to
persons
thority having regulatory
dphPnt1]rPo
T,
the
its
the
the company
applied to the mission.
wi(hin one year,
Capital
income-
by a public
utility company on its bonds and
announced
reduction of short-term notes due
automatic increase
of many workers. And
others will receive substanincreases based on contracts
the
fixed
on
interest
which
standards
of
capital
The uptrend in itself
an
maintain
or
j)Ut will be initially
in-
consumer puce inaex nas m
increase
to
working
are
rising,
cVe^ed consistently for theis past
elght months, and the end
not
in
l)sed
prices
Sound
principles
and
policies prescribed for the
protective provisions of securities
a
ments
largest automobile finance company in the United States, will be
as
year, tney are
v,;
present.
rising; and have
Basically, however,
is sound and the only
economy
..while
activity
&
attitude from optimism
in
future. Nor
although
healthy
before
follow:
Business
of
business
Dr. Nadler
conclusions
s x
Dr.. Nadler
in
psy-
etiological factors are primarily
responsible for the constant
are
tiP
they
♦„
of the
fully under-
tain^for'''IMhoy^ere^to chang^
this policy
soft
on
times
The movement of the equity markef aiSo has a pronounced effect
vails
out
times
observed as regaids the
willingness to increase their debt.
ZZT ^
moditics Di. Nadler states.
1 er
ochties,
The economist foresees
at
on
call
mortgage bonds,
ments.
decide to save more and spend
Net proceeds to be received bv
same volatile attitude Associates Investment, the fourth
changes
unionized
consumer
off
and
more
relates
the rate-making
respect formula. Indirectly, or course, the
such as" interest and dividends paid by a '
bondability of property, sinking registered holding company to its *
fund,
renewal and replacement security
holders
influences
the
fund, limitation of dividends, etc., capital costs incurred by its sub- :
and to preferred stocks of public sidiaries.
If a holding company
first
to
prior
*ess*
automatically follow the
touching
signs
at
other
on
y
«m
wages
increase
thus
tho
pres-
endnot wt
Moreover,
an
as
fi
economist
ccon must
workers
that
still
are
are rising,
fGX
durable goods,
Present
cautions
inflationary forces
they spend
goods,
Inflationary
Found
times
thisr
at
The first
Statements of Policy with
'
"At
time.
preservation of sound capi¬
The
In this
Commission
of
'
Policies
^
'
probably
bearing securities.
i
innn
.
would
greatest interest
companies.
whose
$20,000,000
Co. 5%%
of
offering
uiiamg
about half of the total consump- Associates Investment
to the
pro¬
which
the
tal structures and the second
per¬
tains to that warmly debated
topic
defining
Uon expenditures is for necessi- subordinated debentures due June tion of the Act and it has provided
rWne-->hrt«es;
rest
optional in char- 1, 1977 was made yesterday (July the means of achieving a greater
treelv' on food
soft
ennds
anrf
ecter. Moreover, the buying habits 10J by an underwriting group degree of uniformity of treatment
and interpretation than was pos¬
services " he points out
of the Pe°Ple change constantly,
headed jointly by Salomon Bjos.
net
two
are
the rights and
privileges of holders of the com¬
mon and preferred stocks of those
the
Debentures Offered
a
have
moderately,
decline
to
be
the
on
continue
per
has
market, and there are
decline in other types
a
rnain
and
worked
reflect
econ-
dentures securing mortgage bonds,
debentures and notes of registered
in the third quarter will reat the present plateau
or
0my
jn
the
whether
is
known
not
What is
readjustment.
of
period
is essentially sound, the
pent-up demand for public works
great, and disposable income continues to rise. Thus the expected
decline in the summer months can
it
manufacturing,
number of
de-
expected seasonal downtrend.
durable
of
employment in the service
industries
lies, paradoxically, in
possibility that the Summer
sales
and that we are in the midst of a
decline. This
to
goods, notably automobiles,
come up to expectations,
the basis
trend
rise
sectors
some
have not
sity,
up-
pe-
js particularly true at present. The
output
at New
that
postwar
rolling char-
a
others tend
Banking and
fessor
the
assumed
actcr
Finance
Pro-
in
economy
ri0(j
Dr.
who
are
Regulation
about
predictions
While
"(6)
Public Utility Financing and Money
Period
Readjustment
Dr. Nadler,
to
of Continued from page 3
^
than now pre¬
change in the credit pol¬
the Reserve authorities
and in the money
productivity
Thursday, July 11, 1957
.
weakness
greater
With Recovery to Follow Respite
signs
more
.
.
Mr.
arise
Salik
view of financing proposals under
appropriate
capitalization ratios
for
registered holding company
the
systems.
& Co.
is
President
of
Salik
in
connection
with
our
re¬
Holding Company Act, there
Essentially
what
the
Number 5654
186
Volume
sought
study
were
minimum
and
the
optimum
tion ratios, if there be
should
be;
is
out of this
come
of
study. How¬
that the setting up
of
spe¬
cific capitalization ratio standards
can
l^ad to harmful inflexibility
and
that
continue
should
we
in
be
water utility
as compneu uy
di¬
Trading and Exchanges,
that expenditures
will
reach
a
of
level
billion,
or
34%
public utility industry will have
to pay for this
to raise the money
our
increased investment and the ma¬
judging the jor portion of it will have to come
from our public securities market.
ratios on
a
appropriateness of
No one knows how long this pace
case-by-case basis, which takes
account
of the many variations will continue, but the utility in¬
practice
present
existing
well
as
of
the
as
"
not,
will
nancing
from
less
resort
to
at
one
of
utility
public
have
to
companies heavily
to
regular
public fi¬
intervals
three years,
the
levels
of
regard¬
security
of
on short-term notes from
commercial
banks
and
extend
their
notes
many
times, that
they get backed into a corner and
are
to
forced
market
prices.
so
take whatever
the
be sold at the most attractive rates
in
many
it seems to be a
years,
good
calculated
much
common
to
sell
now
risk
stock
as
Continued
on
securities
That the achievement and pres¬
ervation
of
ratios
essential to the financial
are
capitalization
sound
health of the public
utility indus¬
not only
try has been recognized
by the Commission, but by other
regulatory bodies and also by in¬
formed
writers on
the subject.
Most of these authorities are gen¬
erally agreed
the necessity for
on
adequate "cushion" of common
stock equity to take up the shock
an
of
a
decline
severe
Debt
securities
sued
in
earnings.
in
is¬
not be
should
not¬
amounts
excessive
withstanding the ^ttractiv^ tax ad¬
presently accruing from
vantages
this
type
A strong
mainte¬
company's.high credit
financing.
of
structure
capital
of
nance
a
assures
rating in periods of falling secur¬
ity prices and thus enables a com¬
pany to keep its capital costs at
the lowest levels obtainable in the
market
In this
also referring to
place at all times.
connection, I
am
capital¬
excessive preferred stock
dividends
If
ization.
these issues, it
on
flect
passed
are
might well re¬
the over-all credit of the
on
system even though its debt obli¬
gations have not
that
use
defaulted.
been
authorities
of
number
A
urge
utility company should not
all of its property bonding
a
I'D
credit
in
of low-interest
periods
rates, but rather that it should re¬
serve
of that
substantial portion
a
time
inevitable
the
for
credit
difficult, if
not
impossible to sell common
stock.
Furthermore, it is a mat¬
ter of record that in a period of
severe declining bond prices, such
as
we
are
witnessing today, the
when
it
become
may
interest
costs
issues
on
lower
of
increased
to a greater degree than the in¬
terest costs of top quality offer¬
investment quality have
ings.
Quality
Rate and
Let
Interest
of
Relationship
Inverse
illustrate. Boston Edison
me
Company, whose bonds are rated
"Aaa." sold an issue on June 4
interest cost of
4.58%.
The company's previous
bond
issue
on
July
27,
1954
brought an interest cost of 2.96%.
Thus, the company sustained an
new
gift from the sea!
of this year at an
of interest cost resulting
increase
market
money
162
a
basis
55%
advance
bonds
an
the interim of
This represented
in cost.
Service
bonds
whose
rated
are
with
Company,
"A," sold
sale
bond
in
an
gas! Trillions of cubic feet,
by sea-going drillers.
Long metallic fingers of pipeline
these offshore fields into the
reach it... gather and tie
9,800 mile system of Tennessee
record high of 15 trillion cubic
Swell its
reserves
No easy
task delivering this new gift from
to a
Gas.
THE
cost this
interim
ditional
230
increase
of
The
market
rates
interest
The
the
ad¬
an
points,
or
state of
with interest
highest levels in 25
utility
painful headaches.
continuation
of
pressures
our
rates
bond
at
inflation¬
and increasing out¬
lays for construction of plant and
equipment
by
all
the sea.
industries,, no
is, Tennessee Gas goes
...
to bring
it to you.
TENNESSEE
GAS
the
years is giving
industry some
Because of the
serious
But where gas
TRANSMISSION
AMERICA'S
LEADING
FUEL
FOR MODERN
COMPANY
TRANSPORTER OF NATURAL
GAS
HOUSTON. TEXAS
HOMES-
homes today enjoy the auto«
motic, dependable convenience
an
72%.
present
public
1954.
during
company
basis
of
MODERN
3 of every 5 new
feet!
previous
its
on
April 7,
on
cost
interest
obtained
ary
stubbornly held treasures. Natural
freed
of Nature's
May 28 of this year at
cost of 5.49%, com¬
on
3.19%
the
Commu¬
one
interest
pared
rise
now
Gulf,
in
point.
Public
nity
most
tightening trend of the
the
from
Locked under the floor of the
as
can
possibly be sold in anticipation of
will pay for their secur¬
issued.
are
"
or
climate
economic
at any given time when
'i
ities at a particular moment and
Timing and Flexibility
dustry had to expend money for
This brings
plant additions even in the depths
me
to one final frequently this is a time when
of the
great depression of the thought before I close my remarks security prices are low.
By this I mean that a public
on capital structures.
early 30's.
It is a point
It is not generally realized that that
I
want to emphasize very utility company or a holding com¬
public utility companies cannot strongly; and that is the impor¬ pany should always try to keep
turn
their plant expansion pro¬ tant matter of timing in long- as much leeway as possible so that
it can switch its financing plan*
grams on a*iu oxf juxvc Uie spigot range financial planning. Because
at the kitchen sink.
This is be¬ utilities have to go to the capital on short notice if it appears to
find itself in a falling securities
cause
of the long lead time re¬ markets at such frequent inter¬
utility companies
among
25
above the
In a
market
like the
total of $3.44 billion recorded in quired for construction of major vals, it is of the utmost impor¬ market.
the corresponding period of 1956.. plant items, such as the electric tance that plans be kept as flex¬ present one, where quality bonds
While increasing prices for capital generating stations which take up ible as possible. In our experience have to be sold at the highest in¬
terest costs in 25 years but when,
goods accounts for a substantial to two and one-half years to build. over the years, we have seen a
new
common
stock offerings can.
portion of this dollar increase, the Consequently, whether we like it number of companies borrow so
interesting comments received ira¬
dicate
1957
$4.63
I might say that many of the
ever,
to
planned for the first nine months
not
or
promul¬
should
a
still
will
indicates
Statement of Policy.
too early to say what
gate such
It
vision of
such things,
whether
and
Commission
the
industries,
Act; what
ideal capitaliza¬
or
seems
the electric, gas and
the Commission should permit un¬
der the standards of the
relief
sight. The latest estimates of plant
and
equipment expenditures by
equity ratios which
stock
common
immediate
determine
to
the maximum debt
(185)
The Commercial and Financial Chronicle
.
.
.
of natural
gas.
page
26
26
The Commercial and Financial Chronicle
(186)
or
Continued
interest
an
,
jrom page Zo
_
#4 mmm
#1 YUVama
m
■■
freeze
f
CPr
.-J
UI
.
Market and
PoiflllallAn
l\ey UloIlOn
WMV
two
as
or more
tolv
SEC Rule of Thumb
until
nancine
when
all
we
In the Statements of Policy, to
which I alluded earlier, the Commission prescribed that the first
at
will have receded to a more
rates
attractive level.
of illustration, let me
illustrate with two security offerBy
way
ings which took place on June 18.
Southern Bell Telephone & Tele-
.
bonds
Company,
bonds
reoffered
were
basis and
a
4.85%
a
on
non-callable for any
are
cost
of
bonds
were
re-
the
demption premiums, if any.
This
has been our policy for a number
of years. The problem is one of
rated
was
"A-l"
'Aa
by
Standard
by
initial
an
The
Florida
nexf
and
bonds
sell-out
the
o»74
iu
earned
yieiu.
$2.28
i.uoyo.
xnc
an
share in the
per
12
months ended April 30, 1957, with
the result that the stock cost the
company an earnings-yield
of about 6X)2%.
pi,
Call
p.
Prices
a
basis
uie
Lnnonoo
^unmiis&iun
iors
carefully considers all of the circumstances
before it
in
each
to
strictly
upon
tions
basis. However, I would like
point out that the formula ap-
proach does contain
c? i
i
*-»
V-t
Vionrlc
jc
I
as
as
flowing from
price
has
noia
uuuu
paiim-
for
market
the
several
pairs
quota-
of
com-
parable seasoned bonds of Florida
staff
our
added
has
made
six
to
responses
They
Power
rp 1
&
of
™n cn 1was.JiocKea
lQcatcd outside of Detroit,
a
i
„
tt
Jfv
}. y o/ wi
''Oil
a\B)\6)
\
i
„
of
pany
Colorado
five-year freezes
and New York indicate that when
flio
The
4%s
on
„
obtained
;
words
a;a..ai
,
h
a
rni.inntinn
'l
hpp
ni
.
J,ave
made it.
Holdine
IlOlOing
_
"dear
a-iite
Comoanv
L.OmpdIiy
«ict
ACl
the
—,
-
—-
—.—
t—
-r-.
-
%
which
pressures
^cers
are
enubh?c ufilitv
offices 01 public utility
nancial
mncial
of
decline in interest rates.
NeU
net*
,At ttJnestUke lh<? Pre^n'-,w.hen »?"ds
interest rates are very high inter- nificant
;
York',; State
"?ot
•
price
tree
agents
contained
this
in
against
ormes
.
the
m
compelled
.
.
lack
of
econ-
two
on
issues of 6V4%
bond
recent
offerings by
Pipe
Line
a
,
In
this
that the
received
result
to refer again to the recent South-
"itself with dated Gas an^d Michigan Consoli- with the five-year .freeze.
Sf fih ^°.mPa?.y
the prices at which
bonds, debenOr OrefGrrGd stocks ni3V bG
or Preferred
may be
tures.
redeemed lor refunding purposes.
f°f, CZtGSAe C°m"
mission
mission has set forth its lone eslong es-
Company,
purchases
ffirmnlo
formula
with
Telephone bond offering
the issuing com-
...»
uoc
a-P
initial
bonds
given
company
public
received
licly offered
bonds
/mi
interest cost
an
were pub4.85% Kuoio Tho
basis. The
A
n
on a
were
offering Moody's.
QKC/~
rated
At the
"Aaa"
time
of
by
this
of-
fering, the previously offered New
3. 1»54-..Arkans?f York
at
a
Company sold
public offering
York
Telephone,
carry a
bo»4
k,ni,e
banks
five-year longer maturity,
call price of $106,755
and
case
fw
(Jo
blfiC
utilities
"Without
attempt-
fSi "strops
the monevmarket we
tne money
market, we feel strongly that the propped provision for
non-caHabUity of the bonds
<i
u
5rf3rS in
over
the
of
fears-
Act
were*
companies
0f the issues.
-
,
.
W
,,
Efforts
-
-:and
•
;
fh„f
of the
taken
APn
rnl
is
x
The
that
_
t_
r»
•
x
tenor of hi,s
"when
business-managed
companies seek to join forces for
purposes
r-
of
joint
cooperative
on
,
financing, and
efforts,-they
find themselves blocked
sions still left
•
.
by' provi-
the statute book
and
en-
develon-
^ld.
reactor
profit,
are
illustration to you
Apt
Rnid:no
not,
been
T
af,ain
rnmnanv
standards
thereunder
that
Art
be
must
and
not,
need
interpreted
so
so
to preclude the development bf
art of power generation and
as
the
•
distribution
m
MniHin
^ -XxOlQirij
_
comments
primarily
thp
have
Utilities
50 13#92
lease
vestigate
refused to in-
we
Amlrican
the
Elfct^
F-ieciric
aysiem s
and
Gas
consiruciion
or
a* proposed" ^°450ooo"kilowa
ran
130 miles from AG&E's
over
over
„I„"
est
near¬
generating plant and distribuarea.
It was alleged that the
I
know
being subjected
are
deal
great
of
pressure
the
offering
with
terminated
to
amount
of
the
syndicate
was
substantial
a
issue
still
unsold,
to
a
The
put
a
by the Southern Bell Company,
higher interest cost received
as
"freeze" on refundability for five
or
the indentures
compared
securing
that the value placed by the market on the five-year freeze was
years
more
issues.
in
new bond and debenture
There
has
been
much
on
with
the
4.63%
yield
the New York bonds, indicates
port.
Without the benefit .of
new
legislation, and wholly within the
concept of the statutory standard,
several
panies
large
generating
sponsored
by
as
several
™
■
,
com-
as
nish power to
Need
.
"
well
non-affiliated
utility
organized to fur-
were
a'^DOsUion^o
se
registered
holding company systems
companies
ho^mnanv
servfee i. tL territory
vfced bTanother utnity ^
l tha T/a Zlt sucri
'£ would violate thJ Integra?£n standards df'the Act '
vender
Qur-refusal
the
Fear
Not
SEC
Administration
.
clearest
aS "-n^
to
investigate
exoression
mature
was
that
the
'^concomitantly-
4ith wSS?'Sf X Trt
installations of the
We
of any not great. In the June 19 issue of Atomic
Energy Commission. These found -that there is no
statutory
may accrue to the the "Wall Street Journal," the financing
applications were
au--requirement ' that all generation
using such a non-call- comment was made in the "Fi- thorized
ces(V.a discussion of the amount
raSrfsavings;which
5
h' l£theIndlana
\na
66b,
issuer from
?•
by the Commission.
provls;?n- Whllet as I men- nancing Business" column:
"Yesearlier, the Commission terday's lofty rate came about
lowed a few days
later, the Com- regularly follows its long estabnotwithstanding
the
fact
that
mission stated further: "It is our lis^ied
policy of opposing non- Southern Bell agreed to make the
opinion
however
that
non
re
redeemable features, or call prices 29-year securities non-callable for
'
which are so high as practically the first five
years."
aeemaoie
ieatures
in
senior
seto preclude
refunding, our staff
This question is not one of mere
curities, even though the period has done considerable research on
academic
importance.
No
one
of
non-redeemability is as short as this question.
knows what the future trend of
{60
BEL
,
three
f
to
as
of
a
future
.
.
'
means
,
01
and
s
lot-
insist
,
that
lable feature
.
shall
all
in
reasonable
keep this
i
the
*
out of
t-
un•
financing
programs."
In the
tioned
.
reducing the cost
we
efforts be made to
d
which
should not be resorted
years
money,
1953),
However,
one pair of new electrie utility offerings came out re-
interest rates will be.
cently which sheds
to five years and
the
subject.
On
some
May
New York State Electric
light
15,
30-year 4%%
on
1957,
and
CorPoration sold $25 million
Gas
of
bonds.
They were
by Moody's and "A-l"
by Standard-Poors. They brought
rated
-
prodime heat
not for
met
an. oppoi-
tunity to comment on the Holding
Company Act administered by the
thp
•
companies
all
as
and-the
po^i-
+n
.
Connecticut Public
SEC.
are
research
th{s
W'
,
thf power
.nhiPfti
'. offer
"Public Utilities
Fortnightly," the
Hon. Eugene
S., Loughlin,- Chairman,
in
jn
organized
nnf
Denies Blocking Cooperative
*
eaced
S
,
and:
steam
0r,
Hartford,
buy any-
"
:•
S a"pRDC whi^
nbt
;
*
make'our
to
dLiv St
quit^
tion
large insur-
im the
area did
®
Act
tne
0r. ?lvl-end %es' price ll?an the formulai owfo
na Gas the present time,
At
317, 1953), the Com-
mission stated:
reach
t'->i
,
under
pension, trust
great, i With one
purcnasers
a
net
can
trading in the Over-the-counter man has raised a
non-callability provisions or re- premium over the initial
very interesting
public market at around a 4.63% yield
demption premiums vvhich are so
question. In this connection, you
offering
price
of
only
3.25%. basis. These bonds were offered
high as to preclude any foreseemay find some interest in reading
Actually, in this case the company at $101,755 as
able possibility of
recently as May 22, page 161 of our 22nd Annual
Rerefunding at used a slightly lower initial call
,°We,Llri ft
the
"iouriv -mSdS
oiiminic
adminis-
and
hot
was,
which other
initial
an
Phmmomioi
commercial
tering personal
The Commission, has
of 4.91% and the bqnds
f\l/j
protection of 6*74
is the coupon rate,
Light
3%%
the
the
by
o
a
points, which
over the
price.-
where
provided
were
tiri+Vi
!S25!?i2£21 fully redeemable „.??._■Aag-.
curities should be
Power
&
at the option of
Bell
ern
v
in
n«
York
Vm-b-
of
connection, I would like
the
buy
In the June 6, 1957 issue
of
Michigan-Wisconsin
in
metropolitan area did- uiiwarrahted
I mieht^ alsb noint
any of the issues and the
ol,t that the Commission had nrc-V
interest shown by the
large New.
not
ance
™
concern
to
companies
--——
Connecticut,
raising
capital
—
New
putting.4" the freeze
in
excess
Act
lower
-
^ ^ mipuriexception the
At the
advantage.
approximately cost as basis points
seven
interest
debate.
-
:Eleetric; £unds
w~tiSyanste rt ^entfinTaPanew ^ °f Preferred" dividend' rates time of the offering
bond^offering reldffoi market
bond offering
°P.erate and
t0A greater margins callf StreetYork
hlgne.r
ready tor.market.
Journal" reported
prices
of New
company had
not%reinafiente fn thS debate comPenftlon afinst a"y s,ubse"
qUent
losses
lrom
refundings.
tArA4! ThUS' wec 10% see" ca" prices
Section Kb) of the
of
the
—
the',
ma-';
M-
state;
undue
-v
widely dis- comparatively
low
redemption were offered at about the same
industry and in the prices which
give the investor time, and carried closely comparfinancial community during the
reasonable
protection
and
also able
terms
andis security provL
past six months. Let me say that «ivp the issuer
ne
leewav
give the issuer some leeway in cinns. it would seem that the fivesome
in gions, it would seem that the fivethe Commission is fully aware
pf the event of a further substantial
year noil-callable feature of the
the terrific
not
that
was
WUS
called
This subject has been
cussed in the
h
of
nanfes subiect to reflation under
L Holding Comoanv Act Werioiaing
uompany act.
we_
was
,
nilm.or
,w
carried
refundability.
information
fid.
coiviO
°
aindf' taial " „nntinn?
L^irt,,P
thAir rruitlnn^M^
t<? plJi nrurtnp Wlnnmpnt
„<•
..ic+nnllv
:
.
ailq
lem
D72S.
ine two
remaining isSUes, New York State Electric and
Gas 4%s and Public Service
Com-
a
norlinnlorlu/mn.
^ ^h
Q
™
El
..
..
Commission, under the Holding
Company Act. iound that Power
oil
tp
was or-
interests yjr the puipose
alJ
development in
j-!le field. of ato"llc p°we£ J.hls
the
4%s,
statu
^an.Ized by utility, and non-utility,
The first
Light
.
sy. pio
£»
^"sines®
?, rf?ea
of-
were
re
more recent case, Power
Reactor Development Corporation,.
the
new
™nfTfitflitv ^
,:)OOKIn a
considerable the two companies sold their new not
complete. Nevertheless, it in-,
iiniirno
degree of Kniit-in flexibility. tn bonds in +1-10 middle of May, their ai4\—
built-in -fipvihiiitv
In
the mirirU^ nf Mav thpir
dicated that the patterns.of disperiods of lov/-interest rates, when outstanding seasoned bonds were
tribution of the bonds of each is^
Income-Bearing Issues
,
,
sur-
provisions without freezes
refundability.
Florida
"A"
But
history
could repeat itself in the next
we
one
all remember
Atomic
past fiscal year,
Electric
.
Company, sponsored by 12 utility
systems operating throughout Mew England, presented
the first formal proposal
under the Act relating to the construction of an electric generating
plant powered by atomic
I
cannot
can
how
be drawn
flexible
out
see
or
is
that
the
the
energy.
conclusion
Act
administered
flexibility.
The
is
in-
with-
Commission,
in
occurred late in
thorized all of the proposed trans-
1954
and
early in
period
of
following
the
sharply rising interest rates which
ended in the
company
summer
refunded
of 1953.
an
One
issue
of
the
Yankee
Atomic
transmission
and
Yankee;integrated
the big wave of refundings which
1953
*
New
„
{fnn y
four of these carried
conventional
Call
'
ex-mpieoia umixy.iinancin&
cost
informal
ferings of utility bonds.
invnrinhlv
avp
uie
Vey
market
the
ocJto0?8lly, I do not bielieve that
known as the Pastore Bill,
\ fact,
*3
in
_
s-
closing this discussion of call
prices, I would like to deal briefly
an
inteI
the
in
*
the
the results of
of
svstem
wouJd
rlsJl In"rf
provided tor by tne Act.
In
on
uti]ity
Jr
a
offering.
at
d
refundability,
on
weigh
development
t
indicated
PpnLm;„*i
fu„
t
increased call
an
freeze
or a
must
you
and
sold
d
against
non-callability. Against any savjng which might be demonstrated
Florida
out
for long periods of time.
or
Nevertheless,
case-by-
a
"he iCfnt prTecd^ended^o-
con-
syndi-
the
move
entirely
was
wno
nently
coming
case
case
to
Fixed
on
snuauuns, ana
Ihp
However,
earlier, the Commission
]ong
established
policy
an
for five years.
At the industry.
This formula provides
a
time, Gulf States Utilities that the initial call price for re- market
quotations for seasoned
Company, whose bonds are rated funding
and
general
purposes bonds of the two
companies carry"Aa"
by Moody's, sold 200,000 should be the initial public offering comparable maturity and other
shares of common stock at com- ing price plus the interest coupon
security provisions.
The market
petitive bidding and received a or dividend rate.
for seasoned
corporate bonds of
price of $37.88 per share with a
Certainly no one would contend investment grade is extremely thin
irlonrJ /mcf nf d 911
Thp sharps
tVio-f
Ihic
ipoc
real
any
can
poses.
syndicate price.
comparison was made of the
same
nrnrli
us
as
be obtained by increasing
the call prices for
refunding pur-
carried
enjoyed
at
when
day
started
ultimately
the
purpose
o
mucn
a
to the issuer, resulting from surcate price.
The New York bonus, rendering a possible opportunity
wjth the five-year freeze, moved to refund the bonds at a substansiowly on the first day of the of- tial interest saving in from one
fering. The issue picked up speed to five years following the initial
issue
which until recently had been
used widely throughout the utility
was
to just what sav-
ing
call
immediate
the
one
there
had presented to
.
-f nvin 111
11, 1957
y
We found that the proposed acquisition
of
Yankee
Atomics
securities by the sponsoring companies would not be detiimental
first
e
Crete evidence
This issue
Moody s and
and
subsidiary of
A. T. & T., sold $70 million of determining what is a "reasonable
Moody's "Aaa" rated debentures premium" under varying market
due 1986, at comp titive bidding, and
other conditions.
In recent
and received an interest cost of years we have employed a rule of
4.9136% on a 5%
coupon.
The thumb formula for this purpose,
graph
interest
an
and
price for refunding
preferred and general purposes of 107.046
stocks of public utility companies —equivalent to the initial
public
subject to the Act be redeemable offering price plus 5, which is only
at any time upon reasonable nominally different from the fornotice and with reasonable re- mula.
interest mortgage
that
hope
date
later
some
t
three years following the close of
World War II,
offered to yield s 50%.
out bond fi-
to stretch
trv
five-year
a
In
Thursday, Ju
.
On the following day, May 16, larger volume of refundings of to the carrying out of the inPower & Light Company both bonds and preferred stocks,
tegration and corporate simpluisold $15 million of 30-ycar 4%%
up to this point we have not cation provisions of Section 11 of
bonds
ahead. Sim-
years
bonds which had been outstanding
less than six months.
refunding.
on
4.5524%
funding requirements for as much
and
4.53%.
yield
.
Florida
PllhllCUtililVr lDflllCinOdnuluoncy
HVIIV
WIUHJ
_a
I
.
4.575%
to
carried
issue
This
^ ®
of
cost
reoffered
were
.
case,
au-
actions and granted the requested
electric
facilities
utility
answer
the
sometimes
expressed
industry fear that larger and
economic
generating
more
facilities
cannot be constructed because the
would
Act
preclude it." The fear
possibly be that the adminof the Act, and not the
provisions themselves, constitutes
may
istration
|be threat.
I think that the record
shows
this
jn
that
fear has
basis
no
fact.
n68
g
better
known
Fulbright bill, is cu
principally
tion
Connecticut.
an
mUSt necessarily be entirely withjn
jts
service area.
This would
exemptions
to
the
sponsoring
companies, two of which operate
in
of
system
'
as
the
.
with
which
we
widn
g
are
vitally
-
Volume
5654
Number
186*
bill
This
concerned.
Chairman
Arkansas.
the
on
identical,
on
$. 2054, introduced on Aug. 5, 1955
at
the
previous session
of the
of
ers,
for
is
Proxy>•
require
Practices
of
stockholders,
debt
securities
hands
the
of
of
million
financial
public
and
such
file
great
Rule
industry,, to the
Those who opposed
me.
amendment
our
As
to overlook the abuses
seem
distribution.
by individuals
would
I
with the Rule
trad¬
easily
to
like
call
.
Thus
we
of
It
the
study,
our
plied
be
about
of
assets
alty
pursuant
to
of
Sec.
time
the first
billion would for
be
obligated
such
make
to
filing.
companies,
to
our
presently subject
rules, issued proxy
was
inadequate to
not.
proxy
material
that
information
to
to cast informed votes in
ers
the
of
75%
cases
reviewed, the identity of the
management slate of directors was
not disclosed. In many cases where
stockholder
provided
the
ballot
no
proxy
was
by
form
vote
the shareholder could
which
for
action,
on
for
submitted
were
against the prooosal. Many
of the proxies provided only for
a "yes'' vote, making no provision
for
the
stockholder
desiring to
or
vote in the negative.
been ' almost
has
It
years
since the Securities and Exchange
Our report in¬
dicates, for many not subject to
the jurisdiction of this Act, self-
Act was enacted.
succeeded to
anv great degree.
Our recommen¬
dation is based on our study and
regulation
has
not
the obvious fact that after almost
quarter
a
of
jurisdiction,
a
law
their
so
to
been required
information
give
stockholders
because
SEC
large corpora¬
tions who have not
by
of
century
many
have
not
they have not felt
Abuses Under
recent
and
like
mo¬
developments in
regulations.
1
133
discuss
our
rules
On June 6, 1957,
mission, J. Sinclair Armstrong, in
speech
given
at
the
annual
meeting of the Illinois Society of
Certified
Public
Accountants,
this
high
to
summary
new
broad
secure
of information
dissem¬
about
new
issues consistent with the spirit of
disclosure
under
the
Federal
securities acts.
We have every
dication
issuers
these
not
or
issue
The
the
is
is
Rule
this would
mean
not
of
plethora
a
fit
saw
form which would in¬
a
filed
this
with
agency.
Commission
recently
has
that
summary
that
the
Rule
more
in¬
using
prospectuses and
is
being utilized
are
often.
More Demand for Treasury
The money
recites
i
number
a
which
in
be
not
may
These situations include
granted.
where
cases
situations
of
acceleration
Rule. 460
to
the
yields because there is a slightly better demand
while at the same time offerings have been
very much limited. It should be borne in mind that the investment
demand for Government issues is not very sizable yet, because
there is not enough of this kind of money around, nor is the yield
which is available in these obligations as favorable as the return
that can be obtained in corporate or tax-exempt securities.
for
these securities,
opinion of money market specialists that
It is the
In
Smaller Commercial Banks Disheartened
Charles A. Bianchi, senior part¬
in
investment
the
banking
orderly way in which Government securities were
that it will be a long time before Treasury issues
26
invest¬
resent
bankers
ment
in
the
Sister
beth
are
not and will not be put to
Eliza¬
o n
Monetary Policy Geared to Inflation
fund
appeal,
August
20
through Sep¬
ure
the
Charles A. Bianchi
Bianchi
Mr.
also
Foundation in
1956
fund-raising
campaigns. He holds various^irectorships.
"I have followed the polio situ¬
dollar will
Bianchi
encouraged,
especially by the recent advance¬
ments, I know that polio must be
dangerous enemy un¬
a
writer:
where
investigation
an
is
currently
being
made * of
the
registrants, its controlling person
underwriter:
where
one
of the
is achieved. We
take any chances.
til ultimate victory
can't
afford
to
"The Kenny
Foundation is to be
its accomplish¬
for
It still
when you con¬
sider the thousands of old cases in
need of treatment and rehabilita¬
faces
tion.
a
the polio battle.
task,
big
Today, too, finds it
expand¬
ing into the field of other neuro¬
muscular ailments. It deserves our
help to the fullest extent."
There is no charge for the Kenny
rule, and where persons con¬
nected with an offering may have treatment, the Foundation depend¬
conducted
activities which indi¬ ing upon public contributions for
cate a cause of artificial market its support.
underwriters violates the net cap¬
ital
>-
.
This
action.
mission's
and
has
policy
the
note
been
the
Com¬
for
many years
the first time
for
clearly sets forth these cases.
have
had
much
discussion
provisions which
demnification
even
director
a
narrows
class.,,of persons Con¬
sought to make liable for
of
the
In
Act.
indemnification
effect,
provisions,
though valid in the state of
incorporation,
Section
of
11
of
limit the
the
effect of
Securities
tion
Okla. —Blair
opened
a
Atlas Life
the
the management
&
Co.,
branch office
Building under
acceleration
was
formerly with A. C.
statement
the
Treasury is getting
when the terms for
this sizable operation will have to be made known. It appears to
be the opinion of some money market followers that a split-offer¬
ing will be made to holders of the maturing obligations. To be sure,
whatever comes in the way of a refunding offer, it will have to
be a short maturity. The lower yield for Treasury bills indicates
that some holders of the August issues are doing their own refund¬
more
ing ahead of time.
The cash-ins of Government savings
able
Higgins
come
a
registra¬
16'' desired,
the
on
Calif.—Rob¬
July 18 will be¬
partner in Daniel Reeves
Mr. Higgins is manager
the firm's Sherman
14221
for these securities.
is still being rein¬
the higher rates of return
spite of
in
,
bonds continue to be siz¬
According to advices, the bulk of this money
vested in non-Government obligations.
Smith, Clanton Adds ;
Brown & Stark Formed
Chronicle)
(Special to The Financial Chronicle)
(Special to The Financial
PETERSBURG, Fla. —
Brown
and Stark, Inc. is being
formed with offices at 3024 Cen¬
tral Avenue to engage in a secu¬
rities
business.
Officers are
GREENSBORO, N. C.
ST.
Gunther,
Casper
Company,
President; Wil¬
Secretary-Treas¬
Comstock was local
Associates,
manager
for Security
which Mr. Gunther was
Webber
(Special to The Financial
J. C. Stark,
Mr.
Wesley
to
&
Southeastern Building.
With Paine,
Vice-President;
liam E. Comstock;
and
—
Snelson, Jr. has been added
the
staff
of Smith, Clanton
L.
Chronicle)
CLEVELAND, Ohio—J.
Edward
Jr. is now associated
Paine, Webber, Jackson &
Finneran,
with
Curtis, Union Commerce
Building.
of
Oaks office at
Ventura Boulevard.
Paine, WebberChronicle)
Adds
With Reinholdt & Gardner
To Be Reeves Partner
ert I.
Awaited
also associated.
SHERMAN OAKS,
& Co.
of
August Refunding Terms
August refunding operation by the
in the spotlight as the time approaches
Inc. with
Mr. Rowe
to buy common
The
of John L. Rowe.
Allyn & Co.
Act
1933.
If
in
has
the
violations
these
TULSA,
Inc.,
the rush
decline,
Under conditions such as these there
^
urer.
provision which specifically in¬
down
.
of directors.
It is the Commission's, view that
a
.
New Blair Branch
We
about
provide for in¬
continue to
will be no
rharket by the powers that be.
far as fixed income bearing
obligations are concerned, and this applies to Governments as well
as corporates and tax-exempt bonds.
,,,
Even though there has been a rally in prices of all bonds in
the past fortnight, and this uptrend may carry somewhat further,
it is the opinion of a number of money market followers that this
is not more than a recovery from an over-supply of new issues
and a recovery from an over-sold condition in the older outstand¬
ing issues of corporates and tax-exempt bonds. Treasury bonds
went up in price in line with the general bond market betterment.
on.
quite closely," Mr.
considered
upward movement of the equity
let-up in the pressure on the money
This is not particularly bullish, as
Kenny
and
1955
the
stocks goes
of $474,000
served
its
proof
of
psychology is showing no signs
inflationary
and the strong
fig¬
Area
ern
of abating
market is taken as
of this belief. Because of ^he fear that the purchasing power
The
East¬
over-all
work in Government securities,
and tax-exempt issues, which give a higher yield
and in many instances have had market action which has been
better than the Treasury obligations.
but in corporate
Kenny
Foundat i
will regain the
position which they formerly enjoyed. Because of this,
when funds are at the disposal of not a few institutional investors
they
1957
ments in
under¬
allowed to act,
investment
Cohu & Stetson,
Broadway, New York, will rep¬
ities
its
in the
the disorganized and dis¬
It is very evident from
mercial banks.
firm of Winslow,
commended
arising under the Securities
Act of 1933, where the registrant
showing of the Government bond market
quarter of 1957 has not been a good thing as far as many
institutional investors are concerned, particularly the smaller com¬
second
Kenny Fund Appeal
ner
will
,{registrant
indemnifies
the trend in
prices of non-Government bonds is very much the bellwether as.
to what the bond market will do, and not the course of action in
The very poor
indemnify its directors for liabil¬
likewise
but, in
direction of lower
said, "and while I am
note
Bonds
market is still very much on the tight side
spite of this, there is an improved tone in the Government mar¬
ket. The whole list of Treasury obligations has been moving in the
Charles A. Bianchi
ation
The
of
Government bonds.
explains its policy in accelerating
the effective date of a registration
statement.
Also of late there has been a minor amount
recent new offering of bonds into
Treasury bills, which has added to the demand for the most liquid
Government obligation.
distribution
the
adopted its note to Rule 460 which
gress
some
the former Chairman of this Com¬
a
in
some
demnifies
Rule
to
the
appears to
statute
into
to
I
would
each
correct
invalid,
as
The
done
rally impelled to do so.
I
that Congress
soliciting material which is other¬
or
23
976,
cor¬
we
proposals
If
adopt
wise
elections.
The
typical
proxy was accompanied by a no¬
tice
of meeting with no proxy
In
973,
corporate by reference the proxy
porate
statement.
the
necessity
to
stockhold¬
enable
F2d
ficulty if the Commission
sufficient
with,
investors
furnish
91
the
Wool-
W.
panics subject to'the proxy rules
would not have the slightest dif¬
also found that most of the
We
ination
such a condition.
and
false
people seem to tember 30.
imagine. On the contrary, if these
Commerce
corporate acts require filing with
and Industry's
this Commission, these can be fa¬
goal
for
cilitated by incorporating by ref¬
Greater
New
erence
other reports required to;
York is $200,be filed with thisr*agency.
Com-, 000 toward the
15(d) of the 1934 Act. The other
\ 25 companies with total assets
of $19
that
say
F.
suppose
whether
reports
reports
SEC
the
with
financial
of
valid.
companies, 44, having total assets
of $5
billion, are presently re¬
file
to
in
unwarranted."
us
now
to
very
argument
incorporating it
of
that
.
(or nearly so) of offerings of these issues.
The supply of short-term money continues to be very large,
yield of Treasury bills is ample proof of
and the downtrend in the
was
utilized
used
of the profes¬
a
the
the
no
particularly
fabric
provisions of the bill. Of these 169
quired
the
mistaken construction under pen¬
size
total
"To
must
$24
billion which would meet the
it
S.
U.
vs.
stated.
adopted
Senate
having
is
Circuit
worth
Committee. .There
would be 169 insurance companies
the
by
Suffice
Second
be
can
nothing about the
this
But
Rule.
deleted
was
which
with
be
supporting the correctness of the
was
companies
bill,
of such
altered
where
amended
did
and
Rule.
the recom¬
mendation, that. the exemption for
the
ad¬
an
be
especially
had
Congress
following another
of financial report¬
ing and proxy practices of insur¬
from
ward
of
since
attributable to quotation mark-up.
evident in the
one-page brochures
as
when
hope
section to which this problem ap¬
changes,
insurance
cannot
consultation
(Congress,
that
companies,
that
argued
standing
without
detailed study
ance
been
has
long
the principles and
objectives of the bill are sound
and supported its -enactment sub¬
ject to certain changes.
One of
these
to
prospectus, urged by industry, will
.
ministrative interpretation
Commission unanimously took the
position
is
solicita¬
Brief
can
of securities. However, I have
not
are
abused.
misleading,
interpretation
as an
minor, pick-up in the
switching from some of the
be
were
a
sizable amount of the recent price recovery
Another factor in -this up¬
trend in quotations of Treasury issues has been the lack
sional stage,
15(d)
trial for it
on
materials
1920's
been
issues, the action of these securities is still not out
or
tion
pointing out that the end result
bv
small business but
big business.
result
a
Section
has
there
It is reported that while
demand for all Treasury
tax-exempt markets.
the corporate and
summary
required
are
under
Rule 434A is
u^ing the guidepoi.nts of Rule 133
to free-up stock and facilitate a
here talking of
of
a
exchange.
recision of the
or
that have occurred
to: the
insider
to
concern
bar and to
...
rather
uise
registrants
reports
1934,
proxy
legislation.
to
The Rule is limited to
if such issuers are listed
companies on a national securities
.
this
issuers
showing
favorable trend which has been in evidence in
because of the more
registrants filing in Form S-l or
S-9, where at the time of filing
provisions of the' of a vote of the shareholders con¬
1934 Act, Sections 13, 14 and
16. stitutes an "attempt
to dispose
Approximately 1,200 corporations of
a
security for value." as
with total assets of $35 billion those words are used in the Se¬
would come within the scope of curities Act.
ing
been
never
The Government market continues to make a better
prospectus.
$2>. attention to the difficulties I have
and
subject
assets
reporting,
has
lems presented by this Rule are of
or $1 million
outstanding in
the
issue
Governments
on
By JOHN T. CHIPPENDALE, JR.
of the Securities Exchange Act
On May 25, 1956, following in¬
tensive study of the financial re-v
porting and proxy practices of al
great many companies,, this Com-;,
missmny©resented its report on
the
Fulbright bill which would
make
companies having 750 or
Reporter
practical mat¬
a
withdrawn recently, but the prob¬
.
more
Our
Nov.
tain
been
has
registration
will
com¬
23, 1956, Rule 434A
adopted which permitted cer¬
was
.
Reporting: and
the
On
.
Financial
of
court
a
raised.
following Senator Ful-.. merger,
consolidation,
or
re¬
bright's stock market study. That/ classification of securities which
exception is that the exemption vote will authorize the plan and
for insurance corporations in S.\ bind all but the dissenting share¬
2054 does not appear in the pres-» holders.
Mr. Armstrong's reason¬
ent S. 1168.
'
ing is most persuasive. Our pro¬
7
posal to amend the Rule so as to
Congress
to
raised. As
ever
ter,
of
a
indemnification
of
submitted
petent jurisdiction if the problem
a
plan
statutory
corporation,
a
agreement
or
issue
be
Banking and Cur¬ of 1933. Rule 133, in effect, pro¬
Feb. 11, 1957, and is vides that no sale is involved in
with one exception, to.; the submission to the stockhold¬
Committee
rency,
requires
that
the
registrant insert a statement that
133, the "no-,
theory, was an unsound in¬
terpretation of the Securities Act
the
of
Commission
concluded that Rule
sale"
Fulbright,
27
(187)
The Commercial and Financial Chronicle
.
.
intro¬
was
duced by Senator J. W.
of
.
(Special to The Financial
LOUIS, Mo.
ST.
Wendt
is
now
Gardner, 400
bers
of
west Stock
—
William G.
with Reinholdt &
Locust Street, mem¬
the New
(Special to The Financial
Chronicle)
York and Mid¬
Exchanges.
Ohio—Edward F.
affiliated with
Paine, Webber, Jackson & Curtis,
COLUMBUS,
Saville has become
Bank Building.
He
formerly with W. E. Hutton &
Huntington
was
Company.
,
8
The Commercial and Financial Chronicle
(188)
Continued
from jirst
to
say recently that
lot of intangible
page
a
frequently do much
may
months of 1957 is
than
more
ringing words of. Adam Smith, a great liberal
day, are all but forgotten by all too many of us,
but they are as true today as they were when they were
first published in 1776 and inspired the founding fathers.
And what a vast relief and simplification of duties their
leaders! And what
taxpayer!
government
burdened
and
ments
the
tions in recent years
dertake have
which it
was
intended to
attempts to solve the so-called agricultural problems
that is to
say
the
paternalistic
Federal farm
included in the budget for this
scheduled to cost the nation more than a
thousand dollars per farm. If only those farms are included
which will receive most of this largesse, the amount to be
programs
to
comes
two-and-a-half
times
surpluses still plague us, and little
made in reducing them.
administrators
of
that
figure. Yet
or no progress
/
these
farm
programs
them¬
confess failure. Secretary of Agriculture Benson
recently wrote the chairman of the Senate Agriculture
Committee that "controls (imposed by government) are
not effective in
reducing over-all agricultural production,
despite the severe restrictions they impose on farmers'
freedom to
produce and market." Then, somewhat enig¬
matically, he observed that "since we apparently cannot
legislate scarcity, we must learn how to live with abun¬
dance. If any
product is abundant, it cannot long be priced
as
if it were scarce." Upon another recent occasion he
bluntly pointed out that it was price supports which
priced American cotton out of the world markets, and that
production controls had tended to make that loss perma¬
and to raise costs in such
a
manner
that
our
cotton
not
compete with that of other producers.
Upon the assumption that prosperity could in this
way be promoted and made secure, minimum wage and
other
laws
recent
and
administrative
acts
have
undertaken
in
to raise the sharg of wage earners in the
output, and have succeeded in doing so. A longcontinued policy of
forcing interest rates ^down to a
clearly abnormal level encouraged borrowing for all sorts
years
current
of purposes.
one
was
another. At present some of the branches of
which had been stimulated
v/as
business
policy
and
Feverish activity in business generally
result, and inflation and the threat of further serious
inflation
not
are
some
All
public life would do well to
as
active
as
Continued
a
by this monetary
good many of the politicians
from
well
as
ment
would
be around
credit
thus
The
terest.
limits
work
directions; there is
much
expansion
monetary
well
as
these
limit
policies
avoid
and
But
of
policies
a
real
can
to
both
output
assure,
the
to
in
limit to how
a
as
ability of
slacken
booms
busts.
only is its influence
the power carries with
limited,
it
responsibility given to the Sys¬
tem by Congress to regulate the
creation
of
with
needs of sustainable and
the
orderly
accordance
growth.
The
does not
availability of goods
the
assure
money
which the money can buy. To in¬
buying
crease
panding
without
power
production
only
can
ex¬
re¬
sult in
rising prices.
considering the
In
tary
it
existing
to
and
causes
the present
situation,
is
of
that
level of interest
the
rates
is
not the result of any
Federal
policy of the
System,
the
branch of the
Reserve
Treasury,
or
any
Government.
The
level
current
and structure of rates
sult of
the
are
condition, not of
a
policy."
are
a
money
inevitable
economic
mands
They
for
in
re¬
"tightthe
of
consequence
situation
an
which
de¬
credit
by borrowers
supply
of
savings
available for lending. Higher in¬
exceed
the
terest
rates
are
lowers, the New Deal
that the way to
soon
and
his
fol¬
became obsessed with the idea
raise prices and restore prosperity
spending—compensatory spending, it
was
was
called—
and
proceeded accordingly. It did not take the dreamers
long to go a step further and to set up the claim that not
only deficit spending but any sort of spending by govern¬
ment tended to create
of
an
all too
wide
or
to sustain
prosperity. One result
acceptance of this notion is the
pos¬
sibility of defending the swollen budget of the President
and the
extraordinary volume of public spending cur¬
rently effective by simply pointing out that no deficit is
involved but actually a small
surplus-'—as the accounts
are
kept. But these chickens have come home to roost,
too. We have
a
shortage of funds available
for investment
when compared with current
demand, a situation which
to the distress of
many soft money advocates is
relatively tight conditions in the
money
creating
market and higher
interest rates than have ruled since
the New Deal
into the
The situation thus created
ity
on
came
picture in the early 'Thirties.
inspired a leading author¬
the money market (Aubrey G. Lanston & Co., Inc.)
billion.
$5
choose
deposit
of
banks
in
and
hold
to
in
or
govern¬
cash
as
unavoidable
an
the
form
These cash balances
grow with the
economy
currency.
to
but
they
also
considerably
vary
to
month
and
day
Banks must be prepared
adjust to these variations while
from
to
month
day.
to
keeping the longer term growth
within appropriate bounds.
Federal
The
furnish the
to
need
the
of
against
well
as
is
banks
their
de¬
supply most
needs.
currency
these basic
to
as
task
that
reserves
hold
to
posits,
Reserve's
Some
of
stem from the
reserves
country's gold stock; most of the
remainder
derived
are
from
credit
Reserve
eral
Total
Federal
Fed¬
amounts
nual
to
$23
and
rency
than
cent
The
billion
but
an¬
close to $2
billion.
re¬
sea¬
total
the
of
course
in
normal
the
in
cur¬
averaged
dollars
the
variation
the
has
reserves
a
years,
sonal
be
billion.
credit
growth in demands for
less
ing
operations.
Reserve
dur¬
year
may
Because
of
various
temporary factors affect¬
ing the supply of bank reserves,
demands
for
by
vary
dollars
funds
reserve
within
few
a
days.
of the Federal Reserve
with
concerned
often
of millions
hundreds
of
are
serious
Most
short-term variations.
slack
and
between
total
total
de¬
productive
demands.
of
the
Credit
adequate
and
in¬
an
rates
in¬
by
of
understanding
of
the
savings and invest¬
of
of
the
credit
and
At
simplifying
the
risk
complex
a
endeavor
important
to
in
of
these
over¬
subject,
summarize
aspects
of
these
I
the
rela¬
(1) Relative magnitudes
lic and
of credit,
The total volume of
pub¬
priyate debt in this coun¬
try outstanding amounts to nearly
$700 billion and has increased re¬
cently
by
billion
a
billion
an
average
with
year,
in
1955.
a
of
over
$30
peak of $50
Compared
with
the past,
this rate of growth does
not indicate a credit
scarcity. Most
of this credit is
supplied from sav¬
ings, past and present, of individ¬
uals
and
rectly
or
businesses
invested
di¬
through financial insti¬
Commercial
bank
standing
totals
lion
has
lion
and
age
credit
around
increased
out¬
$170
in
in
total
a
credit
year.
a
A
period
reasonable
of
full
aver¬
employ¬
growth
small portion
needs
the
of
The bulk of these needs
supplied from current savings.
(2) Leverage capacity of Federal
Reserve
credit.
to
in
keep
Reserve
The
mind
credit
basis
of
bank
a
Federal
tremendous
Reserve credit
reserves
which
create
can
that
point
A relatively small
of Federal
supplies
second
is
has
leverage value.
amount
the
on
commercial
close to four-to-
was
of the
years
to
war
1920's
two-to-one
around
This ratio
years.
also
increased
In
10%.
by
by
fact
frequently ignored in pro¬
for the Reserve Banks to
meet
directly
needs.
tion
There
between
for
poses
credit is
ultimate
ated
on
particular
may
which
Federal
that
the
of
uses
base.
the
It
is
Federal
Velocity
of
the
a
balances
public,
large
can
volume
in
the
serve
of
cre¬
for
this
Reserve
within
it
occurred,
than
Reserve
tial
of
Since
The
small
follows
it
should
directly
that
that
be
not
might
million
of
would
be
have
Reserve
factor
small
in
but the additions to bank reserves
resulting could have
impact
a very large
the availability of bank
on
credit
in
for
money
There
and the
general
all
be
can
no
that
sectors
use
of
purposes.
that
assurance
invest in the
or
suffering from
The more rea¬
are
scarcity of credit.
sonable
of
sorts
banks would lend
might
presumption
be
that the funds would flow to those
areas
that
most
appealing.
available
borrowers
of
through
operating
the
of
the
already
find
Allocation
of
for
particular
is determined by the de¬
purposes
cision
lenders
credit
market
forces
processes
influenced
and
of
lenders
and
the
by
supply,
demand,
prices and interest rates.
(5) Effect on interest rates. The
proposition is that in the
next
face of
strong credit demands, the
Reserve
cannot
in¬
keep
terest rates down without creating
additional bank reserves and thus
permitting uncontrolled expansion
of
credit.
pansion,
Such
in
utilization
of
a
monetary
situation
a
ex¬
of
full
would
resources,
be
seif-defeatiiig. It would result in
rising prices, a speculative fervor,
further growth in credit demands,
and
a
rates.
rise
renewed
highest
curred
in
interest
in
shows
interest rates
History
that
the
have
oc¬
with
connection
infla¬
tionary monetary expansion.
Any attempt to maintain arti¬
ficially
sectors
low
Private
for
rates
also
can
funds
be
particular
self-defeating.
will
move
sist in the pegging
more
money
was
the
on
to
per¬
operations will
require the creation of
tionary
from
to meet other demands
areas
arid
more
with eventual infla¬
This lesson
consequences.
learned-pin connection
with
attempts to peg interest rates
Treasury bonds in the postwar
period; it is being illustrated to¬
day in the scarcity of funds avail¬
able for VA guaranteed mortgages
at
the
fixed
4V2%
rate,
when
there
uses
are
The
so
many
other attractive
of funds at higher rates.
Credit, savings, and output.
final
cannot
transactions
diffi¬
the market for mortgages, or Gov¬
ernment
securities, for example,
hands
finance
to
credit
A few hun¬
Federal
a
such
used
particular
culty finding funds.
proposition
creation of
of
poten¬
credit
great,
credit
Federal
the
Federal Reserve
credit
dred
the
been
relatively
a
supply
demands
of
scope
credit.
effect
so
that
has
money
adequate.
amount of
is
evident
o'f
Limited
(4)
relatively
to
is
availability
more
(6)
money.
third proposition is that
small
pur¬
Reserve
funds
keep its operations
relatively small limits.
(3)
credit
little rela¬
be
immediate
initially supplied and the
that
reason
This elementary
the
In view of this
paying higher rates, and
re¬
supplied.
is
growth
a
growth that approximated the
those
serves
posals
commodity
and
credit
times the
many
18%
banks
additional
amounting to
bil¬
recent
by between $4 and $10 bil¬
a
long-term
must
tutions.
years
and
comprise but
the
are
of banks
tionships in six basic propositions:
supply.
that, although bank credit
economy.
monetary
Federal Reserve
processes.
shall
is
nitudes
comments, even
people, indicate
more¬
considerably
The GNP/money
years.
many
Federal
the first proposi¬
summary,
tion
these
to
reserves
particularly Federal Reserve
credit show relatively wide shortterm variations, their dollar mag¬
Mechanism
Public
In
of
and
Operation
formed
availability
ca¬
pacity, and savings exceed invest¬
ment
turnover,
limits of capacity.
operations
adjusting the
accompaniment of prosperity. Easy
money occurs when there exists a
mand
of
limit and of the rise in prices that
on
mone¬
primary
recognize
supply (demand
varied
during the
—-a
•
consequences of
importance
rates
fell
cur¬
three
about
of 10% in GNP in constant dollars
is
individuals,
nesses,
ments
economic
creation of
mere
in
money
influence
Keynes
in
and
Product)
currency).
supply ratio
one
services
to
money
have
the
over
national
and
prices by 8%, indicating
only a small
part of total credit; it covers only
the amount of savings that busi¬
tend
not
creation, and of the role
Lord
These
over,
the
total
goods
deposits and
duplicating
eliminated,
amounts
times the
average
outstanding.
and
the
National
(Gross
ply
Bank
ment,
of
deposits
financial
rently
the
by nearly 10% since
early 1953, while the money sup¬
for
Cheap Money Obsession
the
When
amount to
year
this period GNP in current dollars
responsibilities
as
drawn
has increased
exercising them in the public in¬
processes
deficit
many, many more.
6
page
—
Under
are
Trends in the Money Market
of the economists would
like—despite all these
efforts
and there is wide
divergence of opinion as to
what ought to be done about it.
Obviously, government
has been
something less than omniscient in these instances.
of
a
times
more
volume
rose
has been
selves
could
less at random. There
or
few examples selected
a
whether in private or
restudy the advice of Adam Smith.
na¬
fiscal year are
nent
only
of
tional government thought or claimed to think would
bring better times to both the farmer and the rest of us.
The
are
of us,
to cajole, to bribe, to guide the
farmer into courses of action which
out
course,
provided the best of demonstrations of the
recent years,
laid
more
un¬
eternal soundness of these ancient precepts. Observe the
of
course
or
of
an
adequately improved
budget result must embody reduced expenditures and not
depend for its
improvement merely upon enlarged
receipts.
Y; i
T
enough, the argu¬
to perform func¬
never
25
output
These, of
or perhaps naturally
efforts of government
in the
are
an
also have lev¬
against demand deposits in banks
of
fail to achieve
and
expansion
Checks
value
Precepts Confirmed
Oddly enough,
values.
dollar
selves do not hesitate to add that
godsend to the over¬
a
credit
monetary creation
erage
Commer¬
time.
of
course
bank
transactions
improved budget result,' only a
downturn in business
activity will resolve the problem,
and such a resolution would be
temporary." And we our¬
and often confused
bring to harried
the
cial
should
These
would
to
seem
in
Thursday, July 11, 1957
.
stand in the way of
insuring an adequate budget surplus
for the.„12 months that lie ahead and thereafter. If we
of his
observance
ample explanation. And, the real threat
of future inflation arises from the difficulties that
it to a great society."
repay
the cash
in
to engage in
unnecessary
seems
generalities about why money rates
during the past few months. The impairment
surplus of the Treasury during the first six
have soared
It
We See
As
individuals, though it
"it
.
.
sources
Newly
more
produce
are
is
money
more
that
the
and credit
goods if
re¬
already fully utilized.
created
credit, cannot
be
Volume
used
a
Number 5654
186
In
as
The Commercial and Financial
output;
by some must be offset by saving
the
on
part
In
others.
of
any
given period, in order to keep a
balance between the total of goods
services
and
of
total
and
the
consumed
and
produced
amounts
volume
the
and
of
Banks
can¬
money
to
that part of savings that
the
create
only
cover
enough
a
of
holders
add
funds
do
want
not
Any
to
from other uses.
available
of
limits
sup¬
to
prices will
and inflation result.
up
be
then
bid
follows
proposi¬
these
from
tions that Federal Reserve
tions
and
can
level of interest rates.
It also fol¬
opera¬
tions cannot stabilize both of these
elements at the same time.
strength
Ap¬
demand for credit
supply of savings into
the
bring
are
beyond con¬
and the ultimate
availability of
level
and resources, the keeping of invest¬
ment within the bounds of saving.
rates must
the
It
be concluded that, to
unsatisfied credit demands
may
meet
at
the need is not for
bank money,
this time,
the creation of more
market.
without inflation or other excesses.
.
supply of funds avail¬
largely by the
The total
volume
ent
to
the
that
owners
are
The task of the
willing
banking
of
keeping
the
supply of money adjusted to the
objective
basic needs of sustained economic
inflation,
should
interfere with market
adjust¬
without
growth
not
ments
the
to
forces
of
fundamental
more
demand
and
to that of sup¬
system is limited
the amount of cash that
the
public wishes to keep for
medium-of-exchange purposes or
as
a
store of value. Additions to
plying
supply comprise only a very
small
part
the monetary
involved in
all
of
that
transactions
are
Reserve
the supply of
be readily described
upon
may
and
measured
the
decision
of
of Federal
operations and their con¬
sequences
money
poli¬
simple and easy
The mechanism
task.
money
quantitatively. But
to what amount
as
appropriate
is
in
any
determination as to
With respect to interest rates, it what amount might ultimately re¬
should be kept in mind that al¬ sult from any particular Federal
operation
are
difficult
though they are largely the result Reserve
of basic economic forces, they also matters of judgment. Much of the
affect
decisions.
If the current elaborate organization and ma¬
cu*"y"or,t economic
activity.
situation and
interest chinery of the System for decision
making,
for
ascertainment and
impact of market forces generated appraisal of facts and- opinions
about current economic develop¬
by investment demands upon the
ments and prospects, is used to
supply of savings, then rising in¬
terest
rates tend to curtail
in¬ aid in making these judgments.
Even when the broad judgments
vestment and stimulate saving. To
level
rates
keep
and
are
structure
of
permitted to reflect the
have been
reached, the operations
prevent such a balance
attained.
The
with
respect
sector of the
rates
perform an
allocative func¬
but they are only one of
many factors that
influence the
allocation of available funds.
In the final analysis the prob¬
tion,
lem of meeting
and
services
ability
of
is
demand for goods
one of the avail¬
resources,
their allocation.
as
well
as
More money will
be
based
on
Apparently Pacific Coast inves¬
like their stock reports with
their breakfast, according to Mc¬
Donald, Holman & Co., investment
firm,
banking
what
is
which
believed
be
to
sponsors
the first
PST, updates stock movements on
the
New
York
exchange
and
guides but must be adjusted to
changes in the economic climate.
The
influence
complete
growth
stability
of
or
A.
M.,
54
Guaranty Trust
3.37
4.90
72
65
2.53
4.00
61
50
1.63
2.71
62
63
2.65
3.91
50
51
17.26
22.27
53
45
4.35
5.73
59
57
4.03
5.87
75
55
City
Bank
Irving Trust
Manufacturers
J. P. Morgan
New
York
Trust.
& Co.
Trust
United States Trust
"Twelve
months
NOTE—Where
basis.
forma
ended
June
mergers
2!),
have taken
place
)9'53
the
Adjustments made for stock dividends
data
and
splits.
is
011
a
pro
Now, here in this period the earnings improvement has been
pronounced, about 50% for the average of the group. Paranthetically, it will be recalled that recently we brought out that statistics
of Tucker, Anthony & Co. and R. L. Day had shown that over a
slightly longer period bank operating earnings had shown a better
rate of improvement than had the earnings on the 30 industrial
stocks
making
the Dow Industrial Average. To return: but on
pay-out ratio declined from, approxi¬
up
holders by some
This niggardly treatment of the bank share¬
bank managements is one of the reasons why bank
although
bank stocks have fallen into some disfavor with investors,
by
no
means
designed
stock
the principal or only reason.
But there is
a
sizable body of investors who invest for
rather than for current income, and
it is in the
back of
to
growth
with the earnings trend what
banks, these stocks ought to have appeal, for the plow-
earnings has been
growth.
consistently high one, and contributes
a
,
.
The President of General Electric Co. recently
estimated that
by 1965 the gross national product would be at some $550
Economist Burns, until recent
billion.
Chairman of President Eisenhower's
predicted that it would reach $600
Council of Economic Advisers,
billion by
if the
But whatever estimate or prediction we utilize,
is to attain any such level of production,
1966.
country's
economy
certainly the banks will have to take their part in supplying the
credit and other bank facilities to support such a growth.
And,
"while
immediately among the leading New York City banks the
need for
new
these
as
capital is not
so
pressing, such growth in the economy
'
1
figures, connotes such a need over a period.
stocks
the
of
Most
of
the
large
New
York
where they are
City
banks
are
In the cases
at prices below book, modest increased cash pay¬
selling at or above conservatively stated book
value.
ments, or, possibly, stock dividends,
would give them the necessary
price fillip to make new financing
possible. Indeed, if true book
values
it is probable that bank stock prices
used generally,
were
would today be
higher than they are.
First National City Bank's
via rights is close to book value,
expected to be closed out without undue difficulty.
price on the new shares being sold
and the issue is
Banks
to
see
the
increase
thrive
and
they have.
on
the turnover of their funds; and if we are
predicted upsurge in the economy, bank
earnings will continue
deposits will
to expand evfen more than
Several years ago one of the specialist houses in bank
circular titled "Neglected Blue Chips." This aptly
describes their
Holman office in New
York.
The quotations
are
pre¬
sented in an informal, easy to un¬
derstand
way
with trends and
position among investment
mental values in the group
(Special to The Financial
Massari is now with
BALTIMORE, Md.—Henry Mon¬
Associates, Inc., have opened
branch office at 225 East Red¬
tor
a
wood
ment
Street,
the manage¬
under
Grunwald.
of Norbert L.
Oppenheimer to Admit
Oppenheimer & Co., 25 Broad
Street, New York City, members
of the New York Stock Exchange,
will admit Jack Nash to partner¬
on
Aug. 1.
Form Hynes
Hynes
Securities
City,
to
business.
Sees.
Corporation
formed with
engage
Eugene
in a
J.
the dollar. principal of the firm.
offices at
New York
Avenue,
securities
Hynes
is a
Two With Walston
Calif.—Paul
Daniel Reeves
South Beverly Drive,
the New York and
Pacific
Coast Stock Exchanges.
Mr. Massari was previously with
&
Co., 398
members
of
J. Logan &
Co.
(Special to The Financial Chronicle)
Chronicle)
BEVERLY' HILLS,
New Montor Branch
media; but the funda¬
will not be shrugged off much longer.
Daniel Reeves Adds
special developments.
Madison
output
11
Donald,
been
in
18
53
ing
teletyped
direct
to
CBS'
Hollywood studios from the Mc¬
180
overrated; Federal Reserve opera¬
alone
cannot ' guarantee
sustainable
27
5.52
National
stocks issued a
has
tions
of
as
specially
A
Federal
the
16.73
3.98
First
board is utilized with reports be¬
should not be
of
Reserve, moreover,
averages
New York time.
mechanistic
rigid
9.82
Empire Trust
tors
down would
from being necessary to effectuate them re¬
delicate
day-to-day and
same may be said quire
even hour-to-hour decisions.
Pol¬ ship
to any individual
economy.
Interest icy decisions and actions cannot
rates
interest
47
43
mately, 57% to 51%.
out these objectives
carry
is by no means a
54
56%
the other hand the dividend
supply.
Market Telecast Success
Jones
current
of
Determination
cies to
4.22
Corn
brings coast stockholders the Dow
Determination
savings past and pres¬
of
lend.
this
Problems of Policy
is determined
able
3.28
by the volume of
regular telecast of New York
of savings held out of current in-r
the
stock market reports via the CBSequilibrium in the various sectors come. This would entail less con¬ TV
Pacific
Network
program,
of the money and capital markets. sumption by some, so as tp free ''Panorama
Pacific"
twice
each
resources that can be diverted to
Since a very small amount of
morning.
investment or to consumption by
Federal Reserve credit can have
As a matter of fact, in the three
others based on borrowed money.
multiplied and widespread effects
months since the show began "on
Federal Reserve policy can con¬
upon the supply of credit in gen¬
a
trial basis," the response has
tribute more to the attainment of
eral,
Federal Reserve credit
been
so
enthusiastic, Hugh Mc¬
this objective by permitting de¬
should
not
be
used to provide
mand pressures to bring about the Donald,'' President of the invest¬
special aid to any particular sec¬ level of interest rates that will ment banking firm, reports, that it
tor of the market—whether that
has decided to continue the pro¬
encourage savings and discourage
be Federal Government securities,
borrowing, than it can by creating gram indefinitely.
home
mortgages, the borrowing
The first market quotations are
additional bank money to meet all
needs of State and local govern¬
credit
demands. Under such a presented to viewers from Taments, or business credit. Each of
policy, it may be hoped that the coma, Wash., to San Diego at 7:35
these sources of demand for credit
process
of
rolling
adjustment A. M., PST (10:35 A. M., New
must compete with others for the
This gives Pacific
brought about by market forces York time).
funds available
for lending and
and caution engendered by fears Coast stockholders the day's open¬
pay the interest rates that become of
a
subsequent downturn will ing quotations in New York. The
established by the forces of the maintain stable economic growth
second
telecast at
8:35 A. M.,
and
61
Chemical
market, it
increase in the voiume
but for an
Chase Manhattan
59
operations, as long as they
appropriately directed toward
the
degree
to
wants
60
3.93
ade¬
bility in the value of the dollar
and in employment is the limita¬
of
27.92
3.02
serve
result is rapid
tion
C/20/57
*
14.62
Bank of New York
ments, businesses, and individuals
—relative to the supply of savings
available for lending. Federal Re¬
deterioration of the
value of the currency and collapse
of the economy. The price of sta¬
propriate interest rates under the
circumstances are those that help
to
upon,
soon pass
limits,
trollable
If the
accordance
with
of credit demands.
in
vary
interest
of
structure
the
then
resources,
extent
and
supply of money is maintained at
level consistent with economic
a
entered
is
flation
the
that such
however,
lows,
both
and
money
will raise prices and
costs by much more than would
higher rates of interest. Inflation
is the most inequitable form of
taxation.
Once the course of in¬
'r>!i
57%
demands—for invest¬
consumption, by govern¬
or
—Dividend Payout—
] 'i
$5.32
borrowing
ment
tion, which
opera¬
influence
do
of
volume
the
artificially low inter¬
est rates can only result in infla¬
maintain
determined
are
Trust
$3.97
be concluded, should be and
may
Stocks
'
Bankers
capacity.
Trends in the money
meet special needs or
in order to
Conclusions
It
The creation of new money
along.
HI*"**
1 !);>•»
quate for expanding our produc¬
tive
go
Hanover
savings
maintaining
of
we
Operating Earnings
avoiding
appropriate part of current in¬
comes to essential social services,
and
as
Leading New York City Bank
an
must be exer¬
selective judgments
cised.
spells further dividend increases
unduly to costs, of allocating
reached
are
resources
output and employment, but if the
resources of the economy are fully
•
business it is
or
If there is slack in the econ¬
omy
such an increase in bank
credit might stimulate increased
ply.
utilized,
have all the
can
roads
or
add
Bank Stocks
divergence between the operating earnings trend and the trend in
refraining from practices that
of
willing to pay for, but when the
total demands for goods and serv¬
ices will exceed the
community
schools
then
York
unsound com¬
mitments and excessive spending,
to draw resources
balances,
cash
their
to
of
tasks
and the
being fully invested
are
un¬
society wants more resources
allocated to housing or to schools,
then measures have to be adopted
is
credit
bank
and
If
expanded at
time when all available savings
If
inefficient
be
—
anomaly that has been evident among the leading New
City bank stock statistics for some time has been the
and consumers—must share in the
equitable.
balances.
of cash
would
it
public wants to hold in the form
This Week
An
can
controls and
direct
savings and they should
not create
money
29
By ARTHUR B. WALLACE
be done
can
invest¬
of
volume
total
ment must correspond.
existing
appropriate and tax. It
create unstabilizing developments
through processes of
that it may be difficult if not im¬
rationing, but
this would require a system
of possible for the Federal Reserve
to correct. The whole community
socialistic dictatorship that is re¬
—governments, businesses, labor,
pugnant to our principles because
saving
net
new
of
turnover
to
ment
going into capital investment, the
total
(189)
Chronicle
not
produce more goods when The Federal Reserve plays an in¬
productive resources" are being dispensable role, because it must
possible
the creation of
fully utilized. Allocation of exist¬ make
ing resources and money is ordi¬ enough money to maintain growth
narily
accomplished
in a
free and stability, while endeavoring
to avoid the creation of an exces¬
economy through the competitive
supply of money. At any
market mechanism of prices and sive
interest rates, together with the time, however, shifts in the use of
savings and changes in the rate of
exercise of the powers of Govern¬
incomes
borrowing
economy
to
correspond
.
.
savings.
for
substitute
balanced
a
.
SAN
FRANCISCO,
Calif.
—
Francis Carr and William L. Rose
are
now
with Walston & Co., Inc.,
265 Montgomery
was
Street. Mr. Rose
previously with Quincy Cass
Associates.
30
(190)
The Commercial arid Financial Chronicle
Continued
jrom
fill
17
page
the
field's
N.
June
25.
(1,500 shares,
value
par
title
$100.)
*
the
By
common
Ind.
Marion,
from
increased
was
to
of
$600,000
Bank
effective
$800,000.
(80,000 shares,
par
26.
value $10.)
FIFTH-THIRD
UNION
Dec.
$
Cash
due
S.
84,095,480 100,871,579
Loans
holdings
84,254,105
discounts
&
Undivided
4,705,307
^
»
CONTINENTAL
BANK AND
ILLINOIS
NATIONAL
and
from
U.
S.
due
banks
Govt,
Loans
&
Undiv.
636,140,311
ft
ft
At a special meeting on July 9,
shareholders of Manufacturers Na¬
the
Bank
of
to
Detroit,
proposal
to
Mich,
increase
stock
by
156,600
offered to share¬
common
shares,
be
holders at $35 per share. The book
value of the Bank's shares out¬
standing
June 30
on
National
was
of
Abi¬
ft
stock
new
the
sale
of
and from
$7,500,000 to
stock dividend ef¬
$8,000,000 by
a
26.
June
(800,000
shares,
ft
shares held.
seven
Rights
This offer¬
will expire on July 26.
ing
will
be
underwritten
group headed
by
a
by Blyth & Co., Inc.,
First Of Michigan Corporation and
ft
Mayberryy bank
President, reported that $1,566,000
Elliott
McAllister
2
voted
their
of
merger
of
County
into
July
on
approval
Placer
Auburn, Calif.,
1930.
Bank in
The
the
Bank,
Bank
of
of
Placer
County
similar meeting July 1
a
ratified
banks.
the union of the two
The
is to
merger
$48,953,835,
including
ft
become
H.
California
and
corporated
ft
Mar.
Cash
S.
1957
over
of
banks
curity
434,337,374
438,779,828
610,110,536
611,035,747
discts.
721,884,149
719,678,251
profits-
19,449,512
ft
1864
reported
of
of
the
in
its
of June
as
total
in¬
was
and
17,733,061
ft
of
California
offices
ft
ft
branch
in
Guatemala
City
July 1 by Bank of
(International),
San
Calif., wholly owned
subsidiary
of
Bank
of
America.
Located in the Passarelli Build¬
in
the
is
capitol
city,
headed
new
by. William
Bolin, formerly
an
President
the
in
the
H.
tive
served
tive
June
value
25.
(2,000
shares,
par
Seventeen
countries
by
NT&SA,
Bank
and
Bank
ft
By a* stock dividend the
common
Commerce of Pine Bluff, Ark.
increased from
$500,000 to
was
$600,000
and
from
$600,000
to
$700,000 by the sale of new stock
effective June
26.
ft
ft
ft
BANK
LOUISVILLE,
resources—
AND
TRUST
KENTUCKY
'57 Dec. 31, '56
Cash
and
due from
from
sale
26.
63,448,836
46,069,036
65,124,354
Loans
&
discounts
105,403,361
110,612,865
profits—
1,419,477
1,450,582
Undivided
ft
*
ft
National Bank and Trust
Company in Asheville, Asheville,
N. C., with common stock of
$350,-
000; and The Firri. National
Bank
Waynesville, Waynesville, N. C.,
with
stock
common
of
$120,000;
and Transylvania Trust Company,
Brevard, N. C., with
$100,000,
June
22.
common
consolidated
The
of
and
consolidation
stock
as
of
was
its
of
com¬
new
$270,000
stock
by
effective
the
June
at
managers
Klamath
United
Falls
States
the
•
•
head
as
ments.
the
of
methods
depart-
staff
•
Mr.
Raleigh will now be
in charge of the bank's rapidly
growing electronics department.
U.
veteran
members
S.
retired
der the benefits
G. C.
National
!
J. M.
joined
the
1943.
;
retire
to
Corvallis
July
began
than
more
his
50
periods
of
by
would
periods
In fact, it
inflation is the
pressures.
that
domestic
upset
•
West
Coast
National by
served
sula
S. National
acquisition
upon
U. S. He
Manager at Penin¬
Portland, at Kla¬
as
branch
in
math Falls and at Eugene.
named
Mr.
ing
Vice-President
a
Gleason
field
in
entered
1909.
Bank of Oregon
and
the
of
was
He
City
as
He
in
the
was
1946.
bank¬
joined
the
Cashier in
appointed Assistant
Manager when that bank became
U.
S.
National
branch
in
since
Klamath
1952.
L. C.
Falls
branch
Offield has been
promoted to Manager at Klamath
Falls, filling the vacancy created
by
Mr.
Huggins'
transfer
to
Eugene.
.
the
even
dollar
of
W.
July 1.
Huggins,
A.
branch
named
C. Seminara has been added to the
staff
Road
With
Manager of the bank's Eu¬
the
bank's retirement
program.
C.
Offield
ager
at
Klamath
Assistant
is
the
new
1
Lincoln
Phelps Co.
MIAMI,
Fla. —Robert
C.
Lau,
Jr. has become connected with The
Phelps
Company,
168
Southeast
He
in
incentives
insurance,
type
any
clear
Manager
at
the
Joins A. M. Kidder Co.
same
(Special to The Financial Chronicle)
time, Mr. Sammons
being transferred
branch
to
from
the
Klamath
was
Med-
Falls
to
WINTER PARK,
E.
Fla.—Margaret
Arcady has been added to the
A. M. Fidder & Co., Inc.,
staff of
221 West Fairbanks Avenue.
thus
had
believe
that
of
to
the
this
dire
conse¬
forth.
set
belief
bonds.
there
It
would
middle
of
1952
to
the middle
record
prosperity. This was also
period when wage rates in man¬
a
ufacturing
almost
rose
one-fifth.
Thus,
we
have
recently
gone
through a four-year period dur¬
ing which we enjoyed stable pros¬
perity and growth.
It seems to
this
that
me
have
shows
of
is
t
number
a
why
reasons
the next few
avoid
Yet
worthwhile
cited
I
tate.
Businessmen
inventories
and
could
expand
cilities in the lull
v
While
little
a
great
bit
total
population
growing, the increase in
people of working age is a'
is
low
ebb
because
the
of
deal
a
The benefits of
inflation.
of
In
income."
bust.
ber
it
The boom
000
of
South
Sea
and
then
the
boom
past
Bubble
great
the
new
Yet the consequences
of
an
led
to
an
extended
of
means
spending vast
sums
on
and market
re¬
and downs. And,
Federal tax
this
year's
topping
Federal
moderating
$80
billion,
Government
the
has
wherewithal
to
considerable
infla¬
unem¬
the
assumed
for
bill
stock
course,
has
business ups
contribution
make
a
the
very
to¬
wards
moderating a business
downturn by cutting taxes.
period of dif¬
is,
$10,-
products.
with
This
The term "dif¬
adjustments"
families
sponsibility
tionary boom of any variety have
always been the same—they have
ficult adjustments.
income
of
year.
Government
and
1920's.
late
middle
year—to develop
Florida land
the
in
The
consists
research—over $7 billion this
Tulip Boom in Holland—more
was
>
our
num¬
forms—in the distant
the
was
the
a
a
Business is
sort
take
can
output
with income of $4,000 to
always led to
a
capital
dle income market has grown
much more rapidly than total
the
the
process we would have
of a boom that has
on
raises
that
prosperity are
being broadly shared — the
purchasing power of the mid¬
market
very
low
Thus,
per person.
pile up
their fa¬
into
premium
a
investment
seems
to me
inflation must
of
snowball
that
so
demand should
consumer
rise.
l*
l
:
population is growing,
basic
knowledge tnat
Consequently, Tt
inevitably
it
the
point that the basic factors of un¬
derlying strength are still opera-,
inflation would bail them out.
that
in¬
think
make
to
if
Many of
been
times.
our
move
decades
inflation.
have
reasons
still
are
should continue to
in
can
the
can
we
Factors
there
impressive
we
that
prosperity without inflation.
Lists Growth
seems
be
we
1956—during which prices were
while the nation enjoyed
to
save,
One
that
is
stable
mortgages
or
we
period of four years—front
a
the
avoid
I have just
for
•reason
25
a
rush
to buy common stocks and to spec ¬
ulate in commodities or real es¬
the
is
a
very
nation
brief
outline
of
for my belief that our
reasons
faces
a
truly amazing eco¬
if, and this is a big
ployment, depressed earnings and
general economic stagnation.
While I think that it is virtually
nomic outlook
inconceivable that
tern it would generate.
we
could have
IF,
we
can
Recent
plagued
Germany
after
World
War I, I would not rule it out if
should
adopt the inflationary
route.
In this connection, I've always
thought the story about the Ger¬
man
after
hardware dealer in the period
World War I gave the most
graphic
of
illustration
runawav
of
inflation.
the
effects
He
sold
a
avoid
further
infla¬
tion, and the boom-and-bust pat¬
the sort of runaway inflation that
we
has
I
there is
ficult
Man¬
Falls.
announced that J. D. Monteith
ford
Co.,
CSpecial to The Financial Chronicle)
branch since 1944.
At the
&
First Street.
L.
been
Bache
Building.
was
branch following retirement
Godfrey C. Blohm under the
of
of
Falls
1952,
gene
benefits
BEACH, Fla.—Nicholas
that
bring inflation under control,
quences
of
add
the
to
invest
or
market
(Special to The Financial Chronicle)
to
my credentials
inflation, let me
of
enemy
do
polite jargon which
Klamath
since
manager
.
an
birth rate in the 1930's.
presently it
MIAMI
/'■'
economist, consider in¬
an
Think of what that would
boom
of
as
Having displayed
as
formi¬
in
on
as comparable
only to the
plague. If we try to livq
with it, I believe it will destroy
us,.
prices of,
50%
million
a
himself
black
cut the value
almost
hung
flation
That doesn't
very
on
General Outlook
I,
Our
in
anything
for
one
he
tive:
year.
per
He went
down to two nails
was
He sold
ark-'—and
what
trend
for
bought
sum
the other.
.
Bache Adds to Staff
Bank
•
mod¬
a
this
keg.
years.
1933.
Mr.
Huggins
has
been
ap¬
pointed Manager of the Eugene
branch, succeeding Mr. Blohm. Ho
has been Manager of U. S. Na¬
tional's
of
on
-;
moment
a
Yet it would
and joined U.
Finally, he
in stock.
me, numerable
thing
prosperity.'
for
upward
1 ],2%
say
to
seems
one
would be involved in
erate
to
advance
economic front that
our
Consider
to
half
his
replenish
half keg
but the proceeds enabled
buy fewer, and fewer nails*
ahead
dable.
1930
prices,
Moreover,
hope
can
but
quarter
him to
be
contain inflationary
He moved
1923
the
selling nails at higner and higher
A
continue
can
like
in
will
to
sold
a
when prices
economy
and
we
sound
in
suggest
inflation
with the old Ladd & Tilton Bank.
to West Coast National
we
the"swings
declining.
or
our
unless
could
banking
ago
believe
nails
marks
only
prices
that the
rapidly
buy only
so
50
But
would
of
economy
in
years
I
experience
stable
the
.
Blohm
it
have eliminated the cycle.
we
Thus,
prosper
1,
branch
•
500
him
cost
marks.
He
lieve
McKinney, the third U. S.
man
keg
A
second,
and
more
funda¬
mental, point is that I do not be¬
■;
-
that
of the business cycle by adopting
appropriate policies, I do not be¬
are
Manager
at
the
Oregon
City
branch, were honored at a lunch- '
;;
While
pressures.
re¬
Eugene
branch
Manager
since
1946, arid C. F. Gleason,. Assistant
eon.
is
know how to moderate
un¬
bank's
One
with
upward
prices and wages in
followed by reserve
on
followed
July 1
of the
with
wrong
economy,
times,
tnat
Blohm, Vice-President and
National
our
lieve
'
tirement program.
Eugene
branches
National
Portland, Ore. were announced
the end of June
by E. C. Sammons,
President. All appointments were
of
First
Bank
in
pressure
John
things
that
me
100
marks
and
to
ignores the lessons of the past. We
always had ups and downs
gtfod
succeeds
100
can
Trend
have
1.
Brisbin
seems
argument.
Effec¬
(27,000 shares,"par value $10.)
the
84,943,495
holdings
this
it
two
are
bank's
the
Inflation
V
Government
security
$210,000 to
effective
»
banks
S.
$
225,167,427 271,348,721
204,571,550 250,953,253
Deposits
of
increased
New
$
of
National
Calif,
capital stock from $105,000 to
$210,000 by a stock dividend and
ft
June 30,
Total
U.
First
Vista,
(70,000 shares,
ft
FIDELITY
COMPANY,
America
mon
value $10.)
CITIZENS
America,
ij'
capital stock of the National Bank
par
now
of
rising
Assumption
N.
a
of
The
of
are
of
(International).
$100.)
v
July
1932
cisco.
capital stock from $100,000 to
$200,000 by a stock dividend effec¬
meeting
nails, which
for
soaring
were
Almost
<
faces
now
of
However,
the
at
of
hasten
Fallicies
Raleigh, Assistant Vice-President,
Assistant Vice-
international
department
salaries.
business
with
was
board of directors June 28.
has
NT&SA.
ing
and
wages
labor costs.
there
monthly
career
ft
opened
America
Security National Bank of
Duncan, Okla. increased its com¬
mon
in
every
transferred to the Medford
was
Mr.
banking department in San Fran¬
The
rapher, knows all about the Tise
1946 at the head
Lowell R. Brisbin
resources
The addition
increases the num¬
Bank
branch
se¬
recently to employ a college
graduate in any field, or a stenog¬
branch.
to 15.
1,752,136,620
holdgs.
&
Undiv.
Rosenberry,
$550,000,000.
this office
ber
due
Govt,
Loans
$
1,944,640,693
.,778,551,850
and
from
U.
31/57
.,938,060,968
-
over
Francisco,
DETROIT,
$
resources-
L.
Statement of Condition
was
OF
organ¬
Manager
in
$13,953,835
June 30/57
Deposits
was
Auburn office.
MICHIGAN
Total
business
of
President of the bank, will become
Vice-President of
The
Bank
of
A
THE NATIONAL BANK
close
County Bank
$12,000,000.
prints abound with
reports of wage increases
tried
Monteith
associated
U. S. National in
Three
Placer
of Undivided Profits.
ft
the
at
ized in 1887 and has assets of
30,
Funds of the Bank would then be
became
He
Mr.
of
keg
marks
gained through labor management
negotiations.
Anyone
who
has
in
now
Falls, began his bank¬
in New York City in
career
Mr.
Shareholders
of
Surplus
who
glance, this appears to
elemental common sense.
public
news
Assistant Manager at
an
the transfer
ing
California.
of the proceeds of the sale would
divided
The
was
methods
special meeting held
a
be added to
Capital, $2,434,000 to
and' $1,481,000
to UnProfits.
Total
Capital
Gladfelter,
cost
first
be only
Medford to fill the vacancy created
he
ft
The Bank of California
A.
and
Manager
at
Watling Lerchen & Co.
William
Mr.
becomes
branch
rapidly than out¬
more
man-hour of work. Thus,
per
At
Assistant
an
push." By this
per unit of output
will
move
steadily higher, and
prices will be pushed up.
appointed
Manager of U. S. National bank's
troller
for each
Medford
up
the labor
Assist¬
stated that The Bank of California,
San Francisco, Calif, shareholders
effective
Currency,
each
shareholder will be given the op¬
portunity to buy one new share
put
"cost
that wage rates will be
mean
pushed
Monteith, the new Assist¬
ant
Manager at Klamath Falls,
joined U. S. National in 1940 at
the
will
stock.
the
office in Portland. Two years later
value $10.)
Chairman
named
was
prices
a
they
He
Manager in 1944.
1949.
by
the
Mr.
July 12.
the
He
to Klamath
$7,500,000
with
Klamath Falls branch of the U. S.
National.
by
to
Falls
whether
is called
banking
joined U. S. National in 1937 when
000
Under the proposal, which is
subject to approval by the Comp¬
of
Klamath
of
trend
of prices will be upwards
generally rest their case on what
the American National became the
ft
capital stock of The
common
his
bega.n
American National Bank.
old
named
The
also
$39.66.
Bank
in
career
First National Bank of Fort Worth,
Texas was increased from $6,500,-
21,117,750
ft
the
First
Texas,
of June 28 to
as
ft
1,166,841,545
22,938,263
Abilene,
Offield
page
continue to rise over, say, the next
decade. Those who argue that the
aminers.
Mr.
jrom first
Thursday, July 11, 1957
.
Tight Money and Inflation
question
in
years
ant
v.
lene.
par
discts.
tional
the
731,057,258
profits
ratified
of
changed its title
671,049,561
573,628,719
1,166,566,922
se¬
holdgs.
curity
Bank
fective
Deposits
Cash
Dec. 31/56
2,560,632,886 2,769,263,134
2,293,343,573 2,496,971,565
resources,
tional
,
TRUST CO., CHICAGO, ILL.
June 30/57
Total
'
■
ft
The Farmers and Merchants Na¬
4,211,364
ft
■
ft
Medford
will
surplus of $1,200,000; and
profits, including cap¬
reserves,
of not less than
ft
at
Continued
.
As¬
banking including 11
years with the national bank ex¬
stock of the par value of $10
mon
163,283,396 164,582,379
profits—
..
88,644,311
21
capilal stock of $585,000, di¬
vided into 58,500 shares of com¬
378,384,649
Government
security
consolidated bank
31, '56
from
banks
U.
the
$581,436.99.
317,321,803 346,301,583
and
and
have
$
350,924,034
Deposits
National Bank
Of-
named
Mr. Huggins, new head of the
Eugene branch, has had more than
and
At the effective date of consoli¬
ital
TRUST
June 30, '57
resources
charter
undivided
COMPANY, CINCINNATI, OHIO
Total
the
Manager
by
Manager.
as
was
branch.
Company in Asheville."
dation
each;
ft
ft
THE
June
"First
of
Trust
sale of new stock the
capital stock of the Ma¬
National
rion
ft
ft
under
effected
Gladfelter
sistant
News About Banks and Bankers
created
vacancy
appointment
H.
.
This
brings
Inflation
us
to
the
question
of
why we have had inflation in
the past year. Before we can move
on
to
a
discussion of what
to do to contain
to
look
given
us
at
a
the
inflation,
forces
rise of 4% in
prices in the past
This is
a
we
need
we
need
that
have
consumer
year.
complex, not to
say
a
Number 5654
186
Volume
,
.
The Commercial and Financial Chronicle
.
cannot
"If
ask:
hope to explore all of its ramifica¬
tions in this short discussion. Yet,
had
question.
controversial,
it
to
stems
I
that there
me
are
are
it
to
seems
that
me
lead to
his
been
has
though
that
placed
great
We've
too much, too
shall
we
y 111
.
so
in
up
I
sta-
achieve
soon
ancj; at about 20V2, is only frac-
prVrf.s- Al}d we sbapros- tionally
general
n
,
11
in
is
order,
yards in the Pennsylvania System
are the old-fashioned "flat" yards.
lonSer-mrm higher costs that
we succeed in
^e
are common
generally,
industry
rather, the combination of strong
in all major fields that bringing inflation imde£ control sibiy
temporary as far as the
for the moment, won t it break out decline in traffic is
has kept our economy under pres¬
concerned, the
again?
sharp downward readjustment in
sure.
situation
this
of
strong
pointed out earlier, I con- the price of Pennsylvania R. R.
ceive this to be the greatest threat stock makes a world of difference.
mand, wage rates and other costs
have
gone
jn spite of
a
9% decline in carthe period, freight
some
1956, for instance, consolidated
earnings were stated at
per share
as
against $3.16
conventionally.
system
good
$3.99
Consolidated
earnings of the
Pennsylvania System are defined
as including, in addition to those
of the parent road, earnings of
affiliates, 100%
of preferred and
stocks
common
which
of
are
yard at Conway, owned directly or indirectly by
Pa., could lead to further devel- the
parent road
excepting the
opment along the same lines. Only Long Island since 1949, but in¬
"push-button"
eastbound half of this yard cluding the West Jersey & Sea¬
placed in operation last year shore and others operated under
perity, I believe we can look for- were up 0.6% for the first five and for only part of the year. The long term agreements.
In time
ward
to
periodic
outbreaks of months of this year and total westbound tracks went into par- the consolidated earnings of the
construction and
in consumer lines, inflation. These will—sooner or revenues were up 1.1% as com- tial operation in April and com- Pennsylvania may take on even
prices
profit margins,
businesses to; our continued prosperity and
maintain growth. Unless we are willing to
Thus,
up.
raised
have
the
In
results which the Pennsylvania is
getting from its new $35 million
As I
de¬
the
yards,
times
reporting to the ICC, but
5% times consolidated
per
share earnings which
run
some 80 cents to 85 cents higher.
only
involved iq conversion to modern
hump-retarder
6V2
over
share estimate for this
according
to
the conven¬
tional
to enough to warrant the expense
and pos-
demand
In
It is understood that all
handful of some 140 freight
a
little
a
per
year
Yard modernization of further
can be a
fruitful source
savings.
is
$3.10
terioration in the meantime other While it is likely that many of
than the decline in traffic and these are not normally busy
,
,
.
.
+ie !'oW5-a
outlook.
Even
tio
very
low, but
Since there has not been any de-
Longer-Term Outlook
...
greatest
year's
examination
another
low unemployment.
and
this
above
the
present price of about
"Pennsy" yields just under
7% based on the regular dividend
alone, and this stock is now more
realistically priced in relation to
per-share earnings also. This ra¬
yearg
"confident shortly bag declined time- Now
before that SOme 25%
co
ici
|ba^
^
condition 01
a
pcrity
investment has
rise.
It is,
business
the
going
comprehensive project has been
announced, however, in the plan
less than enthusiastic. This, how- trol on some 300 miles of road
ever' was largely on account of between R°ckville, ?a-> a"d Bufthe price o£ the road's stock fal°. N- Y" °ver the nex£ three
which had been in the 2g area
White
am
am
as
No single factor qualifies
shown
st U
are
asrranfdlv™ Thus* I
lapiciiy.
fhus 1
the villain in this process, even
as
Mav
in
aDDearsthat productivity—output
cu m
appears that oroductivUv
economy.
trying to do
quickly.
dmhtlv
of the
situation on
on a
20 %,
April 19 last year was something to install Centralized Traffic Con-
nrtuallv
ohrrkpd—thpv
hepn
wagerates
high level of consumer
our
At
review
placed
April of last year, thus establish¬
ing the $1.40 regular annual rate.
Pennsylvania R. R.
R.
was
35-cent regular quarterly basis in
and
Nevertheless, it seems to me
Our
previous
tight money is beginning to
Pennsylvania R.
The rise in wholesale prices
paid in 1956. The Penn¬
sylvania dividend
By GERALD D. McKEEVER
credit
that
high level of government expendi¬
on
our
work.
attempt to expand
investment in face of a
pressure
and extra
Railroad Securities
been
unemployment.
c1 eelinod
expenditures
not
prosperity
upset
t- is
a
have
might
almost 50%.
tures and
nation
a
have been worried that tight
the
p^ant and equioment. In two years
these expenditures have gone up
business
trie
restraint with sufficient vigor. We
past two years is the tremendous
rise in business investment in new
Second,
bring the total for this year more
into line with the $1.55 regular
why have we
past
two
so,
in
willing to pursue a policy of credit
of the
dominate economic feature
as
we
praise future economic prospects.
First,
is
years?" I think the answer is that,
sev¬
things that can be said that
useful in attempting to ap¬
eral
this
inflation
a
to
exercise restraint in times of pros-
perfectly normal
loadings
for
the
of
revenues
Pennsylvania
was
reaction. Price increases have been
much
larger in
machinery than
reflecting the greater
in
demand
these
Prices of
against
an
our
15-20%
up
growth to
increase
area.
sumer
It would appear
the
that,
wi
this
a
of the
record
•
to me
oast few vears
fromPerfect
cautious
far
while
halt.
it seems
However,
about. 4% in prices in the con¬
of
pletion is scheduled this Fall. Estimated savings of $10 million andisturbing, however, is that the nually from this new facility repthat downtrend
was
aggravated in f£sent a return of almost 30% on
but inevitably—undermine pared
with
the
corresponding
prosperity
and
bring
our 1956 period. What has been more
of later,
pressure
areas.
capital goods have gone
in two years as
,
.
oroWdes
lening gap between the
costs of things to produce con¬
sumer
goods and what consumer
Go^e^men^lc^of^Xini
goods can be sold for cannot last
indefinitely.
tight
the
basis
through
a
for
"
authorities have
valiant effort • to
forces. * De¬
spite all the talk you have heard
about
government spending" and
inflation, the Federal Government
has
been
running
a
surplus.'1 In
the past year the government
in
taken
from
taxes
has
billion
$3*2
cash than it has spent. That's
anti-inflationary since it siphons
cash out of the private economy.
Jn addition., the Federal Reserve
has been pursuing a tight money
the $35 million investment when
completed. In the meantime the
raves wnicn inc
it
pur
if
purpose, it"
could
someone'
would
representing *„a 39%
drop from
be the $1.37 per share figure for the
invent
^
first five months of 1956 and May
a
new net income of 20 cents per share
Alas, tfilsMs was almost 57% less than the
impossible. All that can be offered 46 cents per share earned in May
is the same old prosaic measures of last year.
The May result was
policy for more than two years.
—a
government
surplus, .. tight further penalized, of course, by
Let me see if I ;can explain what
money, increased savings. What if the 3-jcent per hour wage increase
this
esotericv business
of
tight
wanted is not new measures biri. that
became
effective
May
1
dramatic -and
eye-catching
remedy for inflation.
'
-
—
-
,
really is and why it is
money
important.
In
«.
,
so
situation
an..inflationary
everybody is trying to get hold of
more money to spend.
Consumers
trying
are
to
help fi¬
borrow to
vigorous use of the standai\l
more
v
believe it is of the utmost i n-
I
nortance that we
I
also
believe
contain inflation.
firmly
that,
if we
can
achieve
price stability, we
purchases of new cars, ap¬
shall have a prosperity and a rate
pliances and houses.
Businesses
of economic growth in the decades
are trying
to borrow more to fi¬
ahead that will surpass even the
nance inventories and new plants
most optimistic estimates.
and
equipment. And
state and
local governments are borrowing
mere to nay for schools, roads and
Three With D. F. Rice
public works.
borrowing
this
(Special to The Financial Chronicle)
be. fi¬
nanced
out
of
current
savings
then it should not be inflationary.
If
can
The
people who save "cut down
their buying enough to offset the
increased purchases by
The
borrow.
trouble
those who
is
that
LAUDERDALE,
FT.
Fla.-
George S. Losey, Helen W. Lynch
and
come
and
have beaffiliated with Daniel F. Rice
Dale
under the "cost of living^' escalation arrangement
rcmedies.
nance
other
W. Teagarden
Company, 937 Northeast 19th
the
With Link,
has far outrun the nation's
savings. In this situation the crea¬
tion
of more credit will merely
,
holders than for its management,
particularly in the light of the
expenditure of over $1 billion
since the end of World War II on
and
modernization
of
physical plant and which includes
$86 million so spent last year. A
large part of this expenditure was
dieselization and other mod¬
for
ernization
designed
to
reduce
costs, and all that can be said is
that
results would have been
unimaginably worse if these ex-
penditures
Gorman
(Special to The Financial Chronicle)
a
and
had
been made.
not
materials, it has become
of "treading
case
der
to
stay afloat,
Pennsylvania alone,
water" in or¬
not for the
but for the
CHICAGO, 111—June E. Carlson industry in general,
Thus the best course is more
It cannot add to the has been added to the staff of
supply of goods since the economy Link, Gorman, Peck & Co., 208 of the same and one of the hopeis operating at capacity.
But it South La Salle Street. Miss Carl- ful aspects of Ithe Pennsylvania
does add to the supply of money. sen was previously with First Se- R. R. situation ds that much more
can
be done.
While it is likely
So prices are bid up.
curities Company of Chicago.
that operations are largely diesel
The objective of tight money is
or electric powered at the present
to keep the increase in credit in
2 With Demosey-Teor^ler
traffic level, especially with the
line with the nation's savings.
If
(Soecial to The Financial Chronicle)
delivery this Summer of the 50
pursued vigorously enough, a tight
CHICAGO, 111. — Clinton B.
money policy can bring an infla¬ nonnDu0L0r
TncpnL R
pnrnn
additional diesel units ordered last
tionary rise in prices to a halt. K
Fal1. there is r°om for substantial
This
is
true
fven
if the main
c°st cutting elsewhere, partieuDempsey-Tegeler & Co., 209 Soutn
larly in yard modernization and
source of
inflationary pressure is
un
prices.
Swlf
La
a
rapid
duces
down
a
rise in wages that pro¬
'-cost push."
By holoing
demand
through
keeping
tight, the authorities can
make it unprofitable for employ¬
money
ers
to. go
At this
on
paying higher wages.
juncture, you might well
bane
Ti?h
K
btreei.
Lincoln McRae Adds
(Special to the financial chronicle)
trains daily, the deficit from
Advisory Board for
Loeb Jownalism Awds.
The
recently-established
Loeb
•Awards for business and financial
were given their first
organizational framework July 8
journalism
•as
Advi-
an
sory
Board of
men
this source can be held at a level five
n°t proportionately greater than prominent in
the
passenger deficits of
Pacific or the Santa
heavy
the
Union
Fe whichmuch
operate roughly only
as
half
nevertheless
mileage, it is
ous
train-
passenger
hurdle to take.
larly
a
seri¬
It is particu¬
because the Pennsylvania
element of growth in
so
the
lacks
anything like the same degree en¬
by
of
means
things are no less discouraging for the road's stockThese
renewal
ger
joyed
settlement.
bor
years
of the 1956 wage
Plagued by mounting costs of la-
Avenue.
demand for credit in the past two
bid
These, on the conventional parent
company
basis have held quite
steadily around 95% of consoli¬
is expected to return dated
System revenues.
ninw.tni.nt
*i
year.
For
ity holdings in subsidiaries. For
years,
however, there has been
little
change
as
measured
by
gross
revenues,
for
instance.
worlds largest car
road calculates as representing a 20% annually on the investment
$43 million increase in revenues
such means the Pennsyl—
of
pressure
groups
for special J
iL
revenues
.
.
. .
.
.
nvprrnmA it<?
troatment nave not led to anv sie- for the ful1 ^ear 0r an average
have not iea.to any sig
van*a _1S striving to overcome, its
ucatment
increase Of 5 4%
the benefits of obstacles
of heavy "built . in"
nificant erosion in policies of rc- "^edse oi o.t/o, me neneius oi
x
^
w this
increase and of the 5% in- costs in expensive terminal opersticpnt. Moreover, the public has crease in coach fares on Jan
1 ations and what seems to be an
reacted to rising prices with cauhaye been nullified for the time
unyielding passenger deficit which
tion
Instead
of* paying
higher
<being by the decline in traffic. As amounted to $55 million last year,
prices, many people have increased a rAgUl£
net income of oniy 84 While it is a tribute to the mantheir
savings/Sayings deposits centg Per share was reported for agement of the Psnnsylvania that
have
increased 7%/.in the
past,the first five months of Jfcis year, with the operation of 800 passennice
the
to
Samuel G. Rea Shop at Hollidays-
drop of 11% in carloadhj in burg, Pa
Ma* Thus despite
°ec- £8 lasP'j
uoo=L m
due
The demands
t
more
i-
sm
f
Government Policies
making a
contain
inflationary
im
cash budget surplus and
have been working in
ri<*ht direction.
the
The government
been
op
money
r
t
May, revenues for which were
down 4>/2% from May, 1956, reMeeting the greater year-to-year
significance
greater
road's policy of acquiring minor¬
these other roads as a
absorbing the deficit.
a
of gross carried
through to pretax net income, and
in the case of the Pennsylvania
R. R. there has not been much
difference between pretax net and
the
percentage
net income in recent
Although the rate of ac¬
reported
years.
1956
in
crual
was
substantially
higher at 15%, the rates for 1954
and 1955 were only 7.4% and 3%,
respectively,
as
against the nomi-
This has-been
nal rate^ of j>2%.
dye in no small part to a rather
sizable factor of tax deferment
resulting from accelerated amorti¬
zation
which,
amounted
27%
of
ported
to
the
for
on a per
89
cents in
$3.16
last
share basis,
per
year.
1956,
share
or
re-
However,
this factor drops to 73 cents this
year and to about 67 cents in 1958.
Earnings of the Pennsylvania
field
appointed
by
the Uni¬
versity of
was
Connecticut,
Storrs, Conn.
Albert N.
J orgensen,
President of
the
result, Pennsylvania R. R.
stands close to the bottom of the
list of roads ranked according to
As
business-
the
financial
university
which
admin¬
isters the new
G.
M.
Loeb
j ournalism
awards, announced that Laurence
J. Ackerman, Dean of the School
of Business Administration, was
and other
named Board Chairman,
appointees are:
M.
Frank
Chairman,
of
Folsom,
Executive Committee of Board
Directors,
Radio
Corporation of
senior
stock brokerage
America; Gerald M. Loeb, a
of
partner
the
firm of E. F.
Hutton & Co.; Ray¬
mond L. Hoadley,
York
Financial
President, New
Associa¬
Writers'
tion, Inc., and financial
columnist
Trib¬
Dougall,C.O.G.
Miller Professor of Finance, Grad¬
uate School of Business, Stanford
for
the
New
York "Herald
une" and Herbert E.
University, Stanford,
California.
of $50,000 from
the
Sidney
S.
Loeb Memorial
Inc.,
which was
R. R. for 1957 are presently esti- Foundation,
mated at $3.10 per share provid- founded by his brother, Gerald,
ing there is at least a 5% further established the Loeb Awards Fund
increase in freight rates under the in January.
pending ex parte 206 application
While
the
Advisory Board is
An initial grant
'
within the next six weeks or so, responsible for the final choice of
and this estimate also allows for a prize winners, it will form a
10-cent increase in the hourly Selection Committee of six edi¬
wage rate on Nov. 1, 7 cents of tors from various regions of the
jn CTC installation.
The road's which is scheduled and another
country
to
submit preliminary
1956 report states that consolida- 3-cent per hour "cost of living"
recommendations.
tion
of
tracks
continued
facilities
and
during
the
year
was
and
miles of track
were
equipped with signal indication in
ROCKLAND, Maine—Irving W.
Blackman is now with Lincoln E.
that
47
McRae, Inc., 292 Main Street.
both
directions.
A
escalation, both of which were
provided
for under last
year's
settlement. This estimate
might conceivably permit the dec-
wage
much more laration
of a
10-cent extra to
for Loeb Awards ap¬
blanks should be ad¬
dressed to Dean Ackerman at the
University of Connecticut.
Requests
plication
Z2
The Commercial and Financial Chronicle
(192)
I
Cnrtiimiocl
•
first
*
"
same
|
m
■fiL a
VmAfti
C
iilvUIHIIIIAv*J
iliu
At
r
VI
m
that
in
helpful
be
may
tempt
YAdlAfll V
& Va|JVAll jr
been great enough to make individuals feel that they
need
a
at-
an
.and long-run
short-run
The
of busi-
picture
activity is an anomalous one.
expansionary and contrac-
ness
The
"iionary forces maintain the economv
in a nrecarious balance.
In
*■
*
-
-
-
.
,
,
ditions.
In
first
the
existence of
the
place,
capacity has
excess
a
expenditures
S1oo seems relatively certain.
are
The
ready
is
experiencing
excess
ca-
stresses which are necessary to in many industries at the present
create a shambles of unemploy- time, and it may go far to explain
new car. Likewise, little impetus &re jncreasing their expenditures. ™c;it and bankruptcy will have to the reported intention of businesscan be given by an additional re- increases
in
governmental
exbe severe, basic and pervasive.
men to reduce substantially the
laxation of credit terms. Probably penditures are tending to offset
It must be realized that an increase in the volume of capital
muc'h the same thing is true ot £0,pewhat the decreases in ex- undertaking such as this one is expenditures this year.
There
household appliances but the de- penditures in other sectors of the subject to many hazards. It is have been reports, for example,
cline in housing starts has also economy xhe highway program entirely possible that I will find that some automobile factory
heen an important iactor. Over must be mentioned at this point, as areas of weakness sectors which Plans have been postponed bethe short-run, therefore, it not but u .g not likely to influence will actually be the strong ones cause existing productive capacity
is
n^AKohlo
f Kuf
mrliuifli
analyze both short-run
economic conditions,
to
•
weaknesses which are now
present in the economy and to de-
to sales are not markedly exces- termine whether they are of suffi- tendency to cause a reduction in
sive' and' consequently, sharp cient magnitude to bring about the level of capital expenditures,
reductions are not anticipated. . . a major depression. One conclu- The firms in an industry that al-
-
n
time, inventories in relation
Governmental
hensive, but it may be possible to
make some pertinent suggestions
Thursday, July 11, 1957
.
»
"scarce" commodities. At the the
no
vane
■*
ivom
•'
.
.
is K
«
ji
1'P
nttle
.»
higher than the last. State
governments likewise
local
ancj
:
»
i»
^i_
j
_
m*_
•
_
i
j
_
i?/wt
•
^^0
TIllS
PlSl*k6t
why one of the
manufacturing com-
SS thr=r=.
tKe objectives of
situation fulfills
the
Employment
There
industries
are
1946.
of
Act
that
de-
are
pressed but they are balanced by
industries
in
which
activity is
high
extremely
From
short-
a
ofvfew;
I™ pofnt
readjustment"
1
,
the
hp short-run factors in
win
ir,v
r-nnt in
^
t
L
pmlvyp
vM+mpnt
artivitv
in-
business
ffnvpmmpntal
nnrl
a
nel!
m
fiirrpnt
■pnnmimntion
see-
^
'
<
econ-
maintain
to
up
i °
V
whpfher
riotormino
fn
m-rw
theieloie,
will,
sector
business investment repa
second sector about
inventory changes, and plant and
for the decline
nicnn«ah!p
nf
are
One of
many.
important is that we have
up at
last with the ab-
caught
Tnpnmp
This took
tjo/o(
the
an increased
national
rod.
first nuarter of 1Q57 hut
wheVer program!
economic maladjustments are ap- to cut prices in order to find a
peanng that are likely to affect
the economy adversely. It is an
attempt to find out whether paper
silir)ment of oil resulting from the Profds are covering up cracks in
crisis
With the termination
tbe plaster and that we, therefore,
^tLt
likely to see are experiencing a "prosperity
ne, forej
investment declining whleh Is not real
however real
tof eviously established levels.
it may seem.
It is extremely
hii«inn«
citi.atinn
difficult to know which economic
The x u foveVpdh.i Pf 1
advances are sustainable and
ftf
f
covered Diieriy oecause which are nof From the point of
there is not much now that can be v|ew of tbe businessman or the
said about the factors of strength worker, economic growth brings
c^is^vfale
v
,
equipment expenditures. Residential construction has been in a hbat has not been apparent for
declining phase since the end of ™ny months. Likewise, the de1954 and there are few signs that Passive foices in the economy
any recovery can be expected over
obXlous for many
the next few months. The reasons months. The existence of excess
the most
tt«,»
recently.
piobably
™ntinueto grow slowly; there is
lutle rea?on t0 expects1 shf P cle"
Parture from present trends ovei
the remainder of the year.
at the
level.
t„
cp,endduics
continue to which some analysis is necessary.
existing Business investment includes private construction
expenditures,
will
business
ev^nditm-L
ward The consumer
the analyst of
business activity is attempting to
Total
determine whether this "rolling resents
maintain
whlSTISs "o=d
for
50
supplies, the profit squeeze, the
unsettled demand-supply relationships may be slightly more un-
economic advancement. To sav
that a certain amount of growth
|s unsustainable is almost like
saying that we are living on a
higher plane than we should be.
Xo
paraphrase a popular slogan
0f another day, we don't deserve
to have it so good. Such an argu-
jt for the unused capacity,
and this in itself leads to
price
weaknesses which ult i m at el y
might unstabilize the industry
involved. The business firms with
excess capaicty might attempt to
continue to operate as long as
they earn their^vauable costs and
a small part of their fixed costs,
In this way markets could become
glutted, which would lead to price
weakness and unemployment.
ei
~
Slow Down 111 Capital
Expenditures
The
conclusion
to
drawn
be
from this brief survey of capital
expenditures in relation to capacity is that the rate of increase is
likely to be small in the future,
and the possibility of reductions
should .not be ignored.
This is
why the indices on new orders in
the capital goods industries must
be watched with care. The present
favorable than they were when ment is not likely to be accepted
economists analyzed the business by People generally; they refute
^
depression anci war years, situation early in the year, but such arguments by pointing to the
greatly by the level ot disposable
probably is more important there
is no significant change standard of living itself.
income, that is, personal inc°me
is that> while better homes could which foreshadows any cumulaThere are always weaknesses in record does not give any cause to
™
•nCi°mH ta.xef Th^ incom^ be constructed, individuals with
decline or any cumulative the economy> or stresses and hone that the sharp upward trend
i^1Che£n advaSl-in^steadil^ior £carce res0urces are apparently advance I do not mean to mini- £trains which could bring about }vin be resumed in the near fu.
_
The rate ot
umption
.,
.
normal demand created as
,,
activity in the con-
sector
^
^
influenced
is
unwilling to utilize
however
evidence that the ratp of
infi-pnsp'k
the
slowing
recent
and
some
in
advance
of
result
a
failure to build houses during
larger por-
a
lion of them in order to house
themselves more satisfactorily,
personal
_
.
_
_
^
v
..
.
.
the contractionary forces,
be<rau£e they have exeited sutlicient pressure to reduce activity
^e
.1
nj-i
£erious economic and financial
cr|ses it Is not particularly diff|cuit to identify such enervating
This analysis would tend to
reach the conclusion that capital
Cult00
w,^^....4—t'i,CI
4-1-.Ic*
ture.
t C Ilea
In
futllTC
income
.
creased
ments,
t receiTioc^SecSv
i>avments
payments.
The
The
disposable
of
in
w-iv
whir-h this
which this
way in
income
spent deter-
is
busies L?ste^
for
exam
^bl Phonal t^sump«onXde":
penditures amounted
iinn
nf
A-.t
t mion
tnhi
a
$266 bii-
to
nnim.i
nf
Ciio
output of $412
'
gives
behavior
are
the
sales
last
have
$16.3
sales
how
of
spending their
and retail sales
Over
retail
indication
an
turners
of
and
retail
$16.5
the
corresponding
ago
is
to
ather than to
period
increases
a
in
game
in
somewhat better than
The
greatest
it
slowdown
the
;' ,
.
,
ine surveys ot plant ana equip
^
has
risen
in
al-
of
ex-
the
last
are
indications
that
they,
vear
will
^
^ ln™
" t
ut
be
There has been
over
Economy's Basic Strength
b
.
i
months
series
a
.
creation
m„nv
economic
forces
which
of
are
^
j
nutnmnhile
influencing
indnstrv'
posslbie
downward
indnstrv
the
The existence of
adjust-
ment win Prcbably be minor. The however,
current
business
situation,
how-
^
in
m
It includes
th^
+p.v_
aluminum
in
^ papf "
business conditions at the pres- J,oal.n pioduction,
ent time is sufficiently great that
of steel.
any
iici
U™Jll"Sr
favorable. The underlying strength
is
and
ceitain
excess
capacity,
not
necessarily
a
casts
of
revisions
the
in
number
of
the
harbinger of cut-throat competi-
xnand
to
to
the
of
automobile
dedim
psychological
that
*
little
fo-"a
new
there
pressure
is
The
of new commodities
at a more
e j^a fa
e maintmned
the next few years. Con-
^
over
expenditures
sumer
may
not
ex-
pand raPldly enough to provide
fhe demand for all of tf>ese new
Products. Those economists who
have made a sPe«alty of studying
capital expenditure figures belieye that the amounf which is
being spent currently for expans|0n
the
and
introduction
of
new
commodities is somewhat greater
than
has
been
characteristic
of
capacity. It is believed that firms
placed by a period in which the
expansion in caoital investment
a <<maybe up,
maybe down" forecast, but a
,1(b,f +'pi!f t,fp "maybe it will change but probw
abl.V not much" forecast.
Vs growing less
F)Ur|ng the remainder of this
n
operate on a more efficient
basis, if they operate at rates less
than capacity. In a few'cases the
excess capacity is more apparent
wm be more modest. As further
evidence of this trend, the McGraw-HiJl survey shows that over
of the
than real because it is frequently
the next three years a larger pro-
forces which are
Tnvpntnw invpstmpnf i<=°f!aiiina
n0w influencing economic develr_nirJlv
T
thP
b
t
I
0Pment' It is these factors which
iq^r fnVmjtnvv .^
brillS' aboilf fhe great industrial
high-cost equipment which would
?nfy be brought into production
lf abnormal demands were to
develop. Finally, there are cases
fhp
lT;
h„„
rnf.p
np
111311 11 11 as.
paper I shall examine
some
longer-range
Inventories Declining
portion of gross capital expenditures of manufacturing companies
will be for the ourpose of repair-
ing and modernizing plants father
crises and spectacular
nnnl^
atpaf Sih• n/nRv tS
1QS nwi™
rlpf lIJ '
L
t,!
f" jf?* JLa;f
rt^
PiLn!P ^
linn
a>t' J 2
,
than
uPsul'ges.
|n the rate of expansion in industry will tend to remove one of the
dynamic aspects of our economy,
it represents a change. Too much
,
imoluntary inventory accumula-
respond is probablv
fact
t>ro-
can
n
in
,
failure
great
rip,.Pnp
j,
rt
v
.,
Sag in Auto Demand
a
and
J commodities
duction of
H^rlf,^ Vn hji^np^ nnfivHv in
^bo.-t-rnn ^
rptiflt ^P
iham casts> Tllis is not
„
The
stimulating
investment
previous periods.
The
dynamic
expansion in capital investment,
therefore, is probablv coming to
an end, and it is likely to be re-
«„h
of
fore-
automo-
are
of
t ver, does have implications which tion
and price discrimination.
are
serious enough that they Actually, surveys indicate that
should not be ignored or buried industrial plant managers prefer
+hP' beneath a tide of optimistic fore- to have a certain amount of excess
\u
inflationary in which industry has deliberately
created excess canacity because it
After 1929 lt was Possible to is believed that within a relatively
biles which will be sold this
year
look back at the halc.von 'twenties short period normal growth will
and the private forecasts are
beand observe internal structural absorb that capacity. Thus, for
row the
publicly released figures.
weaknesses which finally brought example, the excess capacity
Reports of layoffs ancl business
hii
On
abOLlT the great collaPse ill the which exists m some sectors of
lerminations indicate the critical
fal1 of tbat year' Tt is difficult to the chemical industry does not
state
of
sales of household
ap..
.
c
+,
!ni,ontnrr
' know whether these forces could see^n to be causing too much conpliances.
The problem is to at2a - +i
1
have been recog'ni2ed in the c,ei'n because it is expected that
tempt to explain why consumers
fas T -l!!^! ooc2 f
192°'s: the literature of that pe- the normal expansion of that innre not
spending money for these ^ 5 5/uno■
122a 2
If i? riod shows little awareness of dustry will provide a market for
items.
?re lallin§ hehmd expectations. It some of the factors that brought tbat output within a year or so.
downward
amount
-vesto
capacity
excess
^he list -of in.
P^n^'n^
products
tevcsT i"'™ciuction
indncfHThn
Tne conclusion to be drawn
fjom the pieceding analysis is that
nn
six
Capacity
too, will not increase in intensity »'g'gj
dunng the rema.nder ot the year,
,•
two quarters.
last
this
f*1™11
durable
industries,
the dollar volume
penditures
tne
of
cur-
'
Th
in
sectors
producing
though
construction
rently
spending is taking place
in
there
Excess
^
the economy at the
declining for non-resi- Present time are generally not un-
last
was
consumer
some
is
and
cnne> Construction contract award
year
goods
is
apparently
advancing
slowly and the textile business is
L'ocds
equipment
expected to de-
plant
expenditures
increased volume
an
.n wh.ch the rate of
way
prices
The sale of non-durable
evapacay
°ntG of the most important areas
and .Jj1® iat^ ot inc ea
in much the
tver>
r,
of goods.
year.
level®
' ~
iionary forces are still stro*i# but
mamdei of the year. The expan-
probably will decline
billion.
over
main_
at « ^
Many
Projects are being completec, how-
large part
a
being
is
tained
between
of the increase in retail sales
l
^ a ^nstruction
money
montns
There is evidence that
due
^on-residential nri-
figures are
flattening out. dential private
are
tew
fluctuated
billion
con-
ancl' Prohably, next
year
increase
.
The
P-'Obably continue during the re0]t
the
ot
d
After the
econlmv'rnodvtofton^-m c,?'sralc c0,lla,pse there
S
hn
.mtvi
about the break.
bleed.
on
1S
^V,'
^
tnaf
\
re
are
when
all
rea-
of
excess
capacity,
the Great Depression. It danger that in
more difficult to know cess capacity
whether it
is possible
the
to identify
creation
some
may
of unstable
expansion.
be read
into
The
decline
this conclusion.
It cannot be interpreted as a forecast
of
sharply failing
capital
expenditures nor can it be interpreted as a decline in the capital
goods production industries: it can
be interpreted only as a slowing
in the rate of growth.
justifications
Growth of Labor Income and
w¥ feneral have been given for the existence
agreement about many ot the
other reason for sons for
^ n^ entory liq- |s even
tne
almost
But
cata-
can
for
there
is
market
Output
still
industries exresult in the
con-
Another reason cited for the
sharp break in industrial activity
in
1929
was
that
the
income
of
Volume
the
186
Number 5654
working
population
...
not
was
increasing rapidly enough
The Commercial and Financial Chronicle
.
to ab¬
sorb the increased
output of goods
increased produc¬
resulting from
tivity. No final answer has ever
been given to this
argument, and
is
it
cited
here
stimulates
only
inquiries
because it
concerning
the current
situation.
In
ten
total output
years,
the
of
last
manu¬
the
agricultural community.
over-stressed.
in a lull.
Obviously, this is an exbut the point to be
that the behavior of
it has reduced the level of support consumers
is not as predictable
prices, although the supports now as was once thought and, consein force are probably higher than quently, the effectiveness of some
they were in the period before. counter-cyclical measures may be
World War II.
somewhat less than was originally
Now, however, some people are believed.
advocating the abandonment of
The
has
price support program
been amended in such a way
ment.
treme
case,
thai
farm
made
is
The
cited
the
jn
measured
as
by the Federal Board
Industrial Activity. The
Index of
number
of production workers in
manufacturing
from
102.8%
industries
rose
of the 1947-49
aver¬
in 1948 to 106.5% in 1956. The
age
weekly
hand,
payrolls,
from
rose
the
on
105.1%
other
of
the
1947-49 average in 1948 to 161.2%
in 1956.
A relatively small in¬
in
crease
manufacturing employ¬
accompanied by a very
sharp advance in total output and
ment
an
was
increase in
It
is
the
possible
total payrolls.
to
this
Workers in
in another way.
put
fessional, clerical, sales,
In
pro¬
ad¬
and
ministrative classificatios
coming relatively
fact
be¬
are
important.
the number
more
the last ten years
the program because
of
farm
tained
price
without
be
creating
surpluses.
some
high level
a
cannot
If
burden-
be protected
against the deteriora-
business
of
the
depression,
thing
It
program.
to
signed
was
be said
can
unemployment
insurance
^originally de-
that the worker
insure
part
of
which may be developing within
There are,
be
even
when
it
has
risen
for
businessmen.
some
This
course, others that could have
been examined; for example, the
rise of debt both public and privale, the growth of the population,
of their strength
indicate that they are not
yet of great enough significance
to foreshadow a sharp downtrend
and a world-wide depression. It
is impossible'to determine at thi®
An
appraisal
seem to
the general price Point whether these forces will;
level is dangerous and the ex- grow in intensity over the next
a number of difficult problems in
perience of the past seven years several years but it is helpful to
attempting to control inflationary is indicative of the fact that a suggest that they should be
pressures.
At a high level of great
economic expansion can watched with care.
business activity, it is almost occur with a small advance in
Prediction is always difficult,
speculation
prices.
and
point, it probably
unemployment.
To curb the
inflationary tendencies it has been
on
From
historical view-
an
be shown
can
what
matter
no
art.
receive
income.
the
advance
ments has not
states,
lo
benefit
in
pay-
kept pace in
offset
part
a
limitation
from
36%
labor
of the labor force.
there has been
over,
the
in
the
of
many
the
of
possible loss in income, some industnes
have
adopted
supplebenefit
une™Pl°yment
that great inflations of the past respond\in the expected—or
discuss this general subject at
another time, but enough has been
cf fear jn-this country and, con- said to raise question about the
sequently, there is a tendency to uncritical acceptance of the "perprefer inflation as the alternative, manent inflation" bias. It might
employment. The word "unemployment" still carries an element
it is hard to convince
individ-
an
be well also to remember that in
economics
number
ployed
tries
in
of
we
More¬
increase
an
em¬
manufacturing
that
ity that
indus¬
production
not
are
.
theory upon
wh.ch economic policies for the
control of the business cycle are
economic
has
result
of
tries
in
manufacturing indus¬
400,000, or 3%,
almost
rose
create
50%.
In
the
manufacturing
the increase
in
in¬
non-pro¬
in
deficits
and
periods
have
the
as
economic
measures
designed
to
periods of de-
111
to
of
been
for
create
There
version* of this
development activities, increased
capital
expenditures,
increased
record keeping and overhead ac¬
tivities. These changes have un¬
doubtedly brought a new dimen¬
sion to employment problems
under
changing business condi¬
pected to have not only
tions.
as
It
is
difficult
workers
turing
to
employed
that
argue
in
manufac¬
are not sharing in the gains
technology.
Probably, the
from
point
could
be
that
made
the
workers have gained an abnormal
share of the advances resulting
from
technology and that the
wards
to
capital
The current studies
re¬
insufficient.
are
productiv¬
on
ity will probably show the extent
to which
this
assertion is correct.
undue
burden
the
upon
is not demonstrable.
certain
these
that
economy
But it seems
trends
are
not
yet serious. While recognizing
that
these
changes are
taking
as
place,
I
unable
am
whether
they
to
decide
malad¬
justments which will unfavorably
represent
affect the economy. It is, however,
certain that the fact that wage
income
and
tended
has
have advanced in
create
tance
not
to
keep pace
non-production workers
that
relative impor¬
problems
confronted
in
that
were
preceding
pe¬
riods of business weakness.
own
stimulus
but
well.
the economy is the
as either incorrect
of
in
abandonment
inadequate
or
many of the defenses erected
the 1930s against depression.
The
1930s
social
turmoil and
olution
should
that
some
such
our
were
of
years
there
a
great
was
res¬
catastrophe
again
never
built into
which
were
occur.
economy
We
stabilizers
designed to maintain
portion
of
income
in
the
ex-
direct
a
indirect stimulus
an
The
maximum capacity, measures had
to be taken to prevent a further
expansion
in
bank
This
credit.
accomplished through higher
was
discount
rates
limitations
and
the ability of banks to
upon
additional
it
measures
of
supply
within
reserves.
was
credit
would
be
that
held
bounds.
depression,
of
believed
se-
By these
believed that the
reasonable
periods
In
it
was
the
monetary authority would stimulate investments by making additional reavailable to the banks and
serves
permitting
by
lower
of
rates
interest.
(
Experience
over
the
has brought into
years
It
the
of
some
which
basic
these
can
last
are
that
15
question
concepts
principles
shown
be
upon
based,
now
income.
As
a
result,
realized that it is much
difficult to predict what the
effect of a given increase in inmore
vestment
in
or
expenditures
will
governmental
be
total
upon
income.
If it is assumed for the moment
an
no
multiplying effect
increase in investment
or
in
the
deficit, it is obivous that the
government would be forced in
a
period of depression to offset
dollar
for
consumer
!
dollar
income.
decreases
in
This would
re-
of
a
substantial
decline
in
price
as
support program, as well
the soil bank plan, has proved
ineffective
as a
method of dealing
with the ^burdensome surpluses of
suit in the creation of
confidence
in
the
a
budgetary
value
of
the
and the country might
experience a severe inflation ac-
currency
eompanied
by
great
unemploy-
4-
i»
i
Tk
pening when it is least expected.
Oorrtrsry to the usiicil accusation
i
i
that economists deal with a "dismal" science, the record of uiw
expected events has been genera
ally so favorable that economist!,
should be, as most of them are.
situation. The political struggle cautiously and apprehensively
between Soviet Russia and the optimistic,
which
fEiS?
Dec?J
to
™
ness
J®®®.
creaL condit/on^ which
confidence
and
the
suddIv
^
\ wlich
*f th'
W
investme„ts
J
fir-ip*
"
since the end of World War
aHowmg for an increase in prices.
prove! but
l0'™erly.
hv
and
matic and discretionary actions to
be taken to control the business
cycle which were formulated over
the last two decades are open to
practical
a
matter, reference should be made
to the fact that it is extremely
difficult politically to maintain
governmental surpluses in periods
of prosperity. It would make this
paper
over-long to attempt to
speculate upon the nature of eco-
nomic theories which inay emerge
fr0m further examination. It will
be enough to say that the existing
cvcle theory will undergo some
change.
_
..
Is Inflation Inevitable.
would
inflate
unduly
it
is
to allude to it.
the
necessary
at least
The period of 1951
was one of relatively
prices because agricultural
through 1955
we/e
prices
the
decrease in
world
declining
toVoffset
rapidly
the advance in
One scholar has
industrial prices.
year,
is
the
again
general
stable.
prices have shown
weakness
and
the
the
Mo
non-ferrous
hemiPay-
price
Industrial
some
metals will
un-
-eubtedlv continue. There is probably some reason to suspect that
the "inflationary bias" has been
—
J
Bert
ana
j
Harrv
have
Queen
become associated with McCluney
& Co
418 Olive Street. Both were?
,
of
H
J
Lanae
& C°" InC"
i
*
u
With John H. Kaplan Co.
John
H.
Kaplan
&
120
Co.,
Broadway, New York City, mem.
,
AT
bers of the New
change, have announced that John
relative
the
share
^
.
Mr-
,
,o
Moreover,
•
•
with E. F.
......
.
.
^
ing nations would affect adversely
the economies of other nations.
Although it is not possible to describe the nature of the maladjustment which may be developing, it is possible to emphasize
that the imbalance has not
reached such a joint that a sharp
downturn can be expected,
Conclusions
In summary, I have attempted
to anaJyze some of the short-run
as well as the long-iun foices
which are influencing economic
tr<~nds. ^he short-run trends are
relatively well balanced so that
have achieved
high and
This
man
,
jP
rose
the
European
trade.
aG^ftv
index
tquIS
a^L'e
rate.
Latin America, for
example, has grown more rapidly
than
Europe
and
even
more
rapidly than the United States,
In the past, periods of rapid economic growth have been followed
by sharp though relatively short
declines, and it is possible that a
sharp decline in industrial activity
in any one of these rapidly grow-
in 1956 mainly because
agricultural prices ceased to decline, but in the first five months
of
(special to the financial chronica)
ot
t
same
described this period as the "lull
that
came
to
stay."
Wholesale
prices
.
the ie&isleiecl 1 P
economies of many nations of Roche was formerly
the world have not grown at the Hutton & Company,
of
length of this discussion to go into
the concept of permanent infla-
stable
A- Rert Oueen
while the Far East, Australia, and F. Roche and Jack Jablow have
area have experienced beCome associated with them as
a
enough
As
Western
ments Union have both increased
* the sterling
has been said
to show that the theories of auto-
but
The
their relative share of world trade
orieinallv
question.
it is probable
to
^
than
Briefly,
tion,
=n«e
^rry ^Uge & Vert ypieen
Join McCluney& Co.
has
to
'
it
the
II. Worid trade as measured by
sphere
rWpinnpri
envisaced
serious
in
that world trade is now more important in the economies of many
nations of the world than it was
nfin
;y®.S invSpl
"
Place
the dollar volume of exports
«cult to
mnrl
i^tni
8 l
taken
the volume of world trade has in- form"lv 0fficers
creased, sharply. It would be dif- SfL
2™^*
9?
years
have
!'irisen from $24 billion in 1937 to
Mluencl geneSl buS- $?,3 bim°? in I956- Even after
only
can
•
significant economic developments uan.v I
slight
strength
in
activity.
Unemployment
insur¬ deficit much larger than anyone
ance,
farm price support, pay¬ believes is desirable, and such a agricultural prices is lessening.
ments, and public works were budgetary. d e f i c i t might have-Agricultural prices almost certhree methods utilized. It is gen¬ harmful side effects. It might re- tainly will decline further, and
erally recognized that the farm suit in the creation of a lack of the price, weakness observed in
event
t
United States has almost obscured
'
enough
that there is
!
J ,c
consumers
spend a relatively fixed
proportion of their income or a
relatively fixed proportion of an
in
TL'r,
.
not
do
of
alreirvnMnlefitntlPfhffi
in
its
monetary measures
sought to prevent an expansion of
money which would not be offset
by an increased flow of goods in
periods of prosperity. This meant
that
in
a
period of / prosperity
when
production was
close
to
it is
Perhaps, the most significant
change which is taking place in
decreases
other sectors of
by increases in
expenditures. These were
increase
Economic Stabilizers
by
basic
economy
cure
"Whether the relative increase in
the number of non-production and
service
workers
has
placed an
essentially
same
offset
expenditures
the
but
the
vance at the same rate.
—
.
"av,®
concept, namely, that the govern-
theory
involve
would
vaq
prosperity.
many
general
ment
ti-jp
as
surpluses
duction workers has been the re¬
sult of
expanded research and
uiey
nf
In economics
of hap-
a way
mentionedearlier°ns well
International Developments
LStTbStoMBW
Finally, some comments should
exfsttL mon^tarv ancl HS Soil' be made concerning the malad?
?'h , Jda d
p? ', justments which may be develop,'ifh " yn'Hor
Tooros^nri l ing in the international economic
™
„
of
fiscal
programs
pression
dustries
modified
additional
The
involved
but the number of non-production
1.2 million, or almost
been
research.
workers
rose
What is equally important is to
••
«
The
based
workers
widespread,
however.
1956, the number of production
to
In
unforeseen ele-
picture.
not
and
event
unexpected
some
ted has
is
coverage
the period from 1947
workers.
have .learned
in which our system operates,
The analyst always must reminc?
himself that there is the possibil—
force
workers
ap-
unlearned much about the manner
an
The
or
credit
of
workers of this type has risen
from 19.8 million to 26.3 million,
to 42%
science
to limit credit, but the
necessary
of
or
the
Human beings "do not always?
have been the result of war or proved—ways. Although this fact
brings about monetary mismanagement.
Sel- must be conceded, it does not
a
modest portion of his
a
declining level of activity in dom, if ever, has inflation resulted argue against attempts to analyze
Wages have risen rapidly, certain sectors
and, therefore, un- from cost increases.
I hope to economic trends. By the study of
would, if he became unemployed,
and
can
though
money has dimincenturies, there have
forced to choose between inflation
this, program
abandoned, it means, of course,
that agricultural income will not
^ion ©£ a
Much the
the past
that
The central monetary authority
has als0 discovered that it faces
is
same
Fiscal Policies
of
long periods.
The
idea that the trend of prices is
always u p w a r d is motivating
speculative undertakings on the
Ineffectiveness of Monetary and
main-
again be
of
periods
value
may
the economic system.
show
over
been
We
record
to
value
ished
#
facturing industries has risen 45%
33
(193)
the
Th
] s<
®
?v,
! alV
«
? !.
several
last
pvirfpnr#*
.
n
®
Sip
?
thit
cii^htlv
is looking into
your
future
How does it look?
Rosy? Free
o/f cancer? You hope! But
hoping isn't enough. Of every 6
Americans who get cancer
.
,
c^Hous
JrS1;me is app;aien*^ taklP^ P f ;
Jh s d<ec 1
y
.
utu
^ a
s t that it will grow
infensity oVs^ed ove^
eimei m mieii&ity or speea
year,
3 will die because science
still has
no cure
for them. It will
take lots of research to find that
cure.
Pitch in and help. Send a
check right now
I
I
onerous
pYnLionarv
generous cnecK ngnt now
to "Cancer" in care of your
t^e
Jh© 1rVP'
local Post Office,
contrac-
^ces^ oat^e^hed the^ contrac
iionary fo ce
this
infbHnnarv
local Lost umce.
m
American Cancer Society
I attempted to analyze some or ,
the long-range maladjustments •
■ ■
I
!
^
- j
The Commercial and Financial Chronicle
34
Realization of Economic
Continued
from
14
page
of
One
The Movement for Modernization
the
New York.
in
I believe and
hope that the New
York courts would not
dividend
And
I
hope
decide
now
the
in
case
same
way.
California will see
its position is be¬
how ridiculous
fore
the
nally
Western
finally
jurisdiction
Lines it
decide
over
to
decision.
most
The
of
means
has
Air
to find
effective
such
there¬
themselves of
avail
opportunity to "sell" their
point of view to the public.
every
An American
Contribution
Corporation law
in
this
country
American
oped
in
short
know it
we
peculiarly
product.
a
because
as
is
It
has
period
an
devel¬
of
time
our
country has devel¬
oped rapidly and its progress has
been
a
prodqct of economic
neces¬
sity and public opinion. When our
country was being settled, cor¬
porations Were formed by Crown
grants.
The next step was the
corporation created by special act
of
state legislature. Corporation
we know it was then
prac¬
a
law
as
tically non-existent.
Those
early
corporations
almost all monopolies of
or another.
They were
were
one
sort
banks, in¬
surance
companies, canal com¬
toll
bridges, turnpikes,
panies,
water
supp.l
.companies
y
and
other semi-public
enterprises. The
railroads were in the same cate¬
gory
even
little
later.
though
The
they
came
corporate
of doing business
a
form
desired
was
by
businessmen
because
ter suited to
raising capital than
it
was
bet¬
the other forms of business then
in use.
Also, there were often
other
rights
granted
simultan¬
eously with the corporate charter,
such
as
the
or
exclusive
an
to
power
franchise
condemn
prop¬
erty.
Special privilege, monopoly
and the corporate
privilege were
found together so often that
they
became
mind.
associated
the
public
Consequently, corporations
distrusted
were
give
me
in
you
and
feared.
Let
example. In the
during
the
California
Constitutional Convention of 1878,
an
debates
of
one
the
participants
made
it
very clear how he felt:
sieve
and
that
A corporation is a
runs
sieves
around
in
the
the
state
hard-earned
money of those who do work. We
could live without
corporations in
the State of California, and, with
of them wiped from
nine-tenths
existence,
we
ter off than
r
Thursday, July 11, 1957
.
would be much bet¬
dre now."
we
Remember
that
Court is
corporation
a
of
mem¬
a
the
for
or
amendment of its charter.
cation,
I
it
cause
misleading be¬
be
may
far from the type of
was
general incorporation act to which
we are now accustomed.
Corpora¬
and
laws
was
In
amended to per¬
corporations to be formed to
until
It"
leather.
manufacture
was
not
1866 that New York granted
advantages
attract it.
For
90
years
Moreover,
were
imposed
tions
the
upon
could
as
early
be
restrictions
such corpora¬
formed
so-called
poration acts.
under
general
Their existence
cor¬
was
and
1953
Almost
an¬
addendum
it has
race
and Delaware has
its
more
than that.
It
corporations.
Its
stable
It has
long
continues,
a
with
relations
So
rapid
are
has
Delaware
for
the
for
many
good
noting
has
for
the
for
so
to
corporation
its
fol¬
99:
author¬
differ
from
Act
contained
the
:
this
1878,
and I
less
that
am
was
said
ments
than 80
sure
dated
years ago,
that similar state¬
much
later
be
can
found.
One result of the
public suspi¬
cion of corporations was the im¬
position of limitations
islative
to
power
charters.
Another
on
the leg¬
grant
was
special
the enact¬
ment of general
corporation laws
granting the right ot incorporate
to
any group willing to comply
with the regulations set forth in
the law.
This equalized the
op¬
portunity.
The privilege of doing
business in corporate form
longer
a
was
no
ought
to
poration
they
is
such
of
Slowness
and
Limited
••
is
statutes
to
searching for
in
the
the
Its
cor¬
place to start
the Model,
a
preparation
made
of
We
,
have
that
to
by
a
foreign corpora¬
ought to have qualified
has not, is completely void.
and
merated
tried
approach
new
a
We
problem.
activities
have
which
enu¬
be
can
safely done without incurring the;
obligation
to
qualify.
The latter
But it took
long time for gen¬
eral incorporation laws te'be dea
\
;
part of Section 99 is as follows:
"Without
tivities
excluding
which
may
other
ac-.
riot constitute-
arrangement * ami
provisions of the Illinois
law of
Importance of Public Opinion
which
similar in
Model Act.
are
the
general
many
laws.
state
mentioned.
be
states you will recall a con¬
tract
tion which
in 'the
1
of the difficult problems of
one
some
of
•
.
the corporate secretary's office. In
to
-•
con-
stitutes "doing business" in a state
at ..every
provisions
In
1.933
were
nois
statute
well
drafted.
had
transacting business in this State,.
a foreign corporation shall not be*
considered to be transacting busi- j
unusually* ness in this State, for the purposes
used. -The
been
Illi¬
(
as a
cor¬
porate domicile depends not only
however,
the wording of its corpora¬
but also upon
the
general attitude and public opin¬
nois
existence but only for a maximum
tion
upon
was
Equally-. important,
the fact that Illi¬
by reason of carrying.
of this Act,
on
in
this State any one or more
,
the -states, of the following activities:
J- ' ••
which had been bidding for cojr-,
.4 (a) Maintaining, or defending;
period of years specified in the
poration
business. ; We did not'
any action or suit or any admin¬
statute.
Such
time
limitations ion of the state. In the long run adopt the unusual
provisions ? of istrative or arbitration proceed-,
those intangible factors .are..,the, the Illinois
were pretty general in most of the
act, such as the prorJ
ing, or.'effecting the settlement;
states as late as 1900. Even now most important.
The great surge hibition against non-voting shares..
thereof or the settlement of claimsthere
are
states
which
impose of economic development in our And on the problem .of cumula¬
or disputes.
J T *
;
time limitations.
country since the 1930's hasimade. tive voting which as you know
(b) Holding- meetings of its di¬
Also, limitations were placed people aware of the advantages, from the Montgomery AVard. case, rectors or shareholders or carry¬
of corporations and consequently is another
characteristic of Illi-,.
upon the amount of capital which
ing on other activities concerning
compelled ' many
states
to nois law.- We have concluded that.,
the early corporations could have. has
its internal affairs.
The New York General Manufac¬ modernize their corporation laws. it is advisable to be neutral; .We
:
(c) Maintaining bank accounts. :
in order not to be left behind in
have
turing Act of 1811 limited captal
given alternate, provisions.
(d)
Maintaining o f t ices or>
the economic race.
I think that without
stock
to
$100,000.
I mentioned
any recommendation and
agencies
for
the transfer, ,ex-,
our> we are glad to let the states take
the 1817 amendment which per¬ there is slowly growing in
change and registration of its se¬
mitted corporations to be formed country an awareness of the fact their choice.
curities, or appointing and main¬
that
corporations are good, not
to
make leather.
It
imposed a
Illinois
has
now,,, by
amend- ; taining -trustees
or
depositaries,
limit of $60,000 for leather corpo-' bad, and that the large aggrega¬
ments already
made .and others- with relation to its securities.
rations; and in 1821, when the act tions of capital which only a cor-, proposed,
moved
closer- to -the
(e) Effecting sales through in¬
was
further amended
to permit poration can gather together are
Model Act category of states.
dependent contractors.
provide the goods
the incorporation of companies to necessary to
(f) Soliciting or procuring or¬
manufacture salt, a limitation of and the jobs necessary to keep
Acceptance of Model Act
ders, whether by mail or through;
our country
prosperous. More and
$50,000 on capital was imposed.
As the score stands at present
employees or agents or otherwise,;
Not until 1905 did the great in¬ more people are becoming inves¬ there
are seven
Model Act juris¬
where such orders require accept¬
dustrial state of Pennsylvania re¬ tors and stockholders and are ac¬
dictions (Wisconsin, Oregon, Dis¬ ance without this State before be¬
quiring a realization of the bene¬ trict of
move limits on the capital of cor¬
Columbia, Texas, Virginia,' coming binding contracts.
porations, and Michigan, another fits of corporations. This is off¬ North Daktota and Alaska) and
(g) Creating evidences of debt,
the
fears
and
distrust
great industrial state, did not give setting
there are three others (Maryland,
mortgages or liens on real or per¬
which grew out of the early cor¬
way until 1921.
North
Carolina
and
Illinois)- sonal property.
porate monopolies.
which are
The amount of debt a corpora¬
similar "" in many re¬
(h) Securing or collecting debts
I
mentioned
the
victory
of
tion could incur was
spects. Thus, ten of the 52 juris¬ or enforcing any rights in prop--.
limited, too. Delaware in
the competition for
I thought all such restrictions had
dictions in our country show the
Crty securing the same.
corporation business.
The Dela¬
xbeen removed long ago, but last
influence of the Model Act. I say
■> (i) Transacting any business in;
ware
corporation laws are good, 52
year while I was representing a
because you must take into ac¬ interstate commerce,
and for a corporation which wants
lender who was making a loan
count in addition to the 48 states,
b
(j)
Conducting
an
isolated
to carry on business in a number
to an Arizona corporation, I was
the District of Columbia/ Alaska, transaction
completed within a
of states as a foreign corporation,
surprised to find that the debt of
Hawaii and Puerto Rico.
•/:
period of 30 days and not in the
I think they are the. best- laws
Arizona corporations is still lim¬
No corporation act heretofore' course of a number of repeated
available. The general impression
ited by statute.
has ever had as wide an accept¬ transactions of like nature."
throughout our country, however,
My purpose in discussing his¬ is that the Delaware laws are too ance as that already accorded to
Model Non-Profit Act
v
tory has been to demonstrate to liberal. When I
the Model Act. It is a very con¬
try to pin down
As a companion for the Model
you
the
crete
process
of
evolution that
accomplishment
i n ' t h e
criticism, I find it Very diffi¬
which our corporation laws have
Corporation
Act,
we'
modernization
of
corporation Business
cult.
However, public opinion is
gone thourgh in this country and
laws. Further, you will remember have prepared a Model Non-Profit
a
fact
which
must
be' given
how short the time has been dur¬
that it has been done within a Corporation Act.
It is applicable
weight. The fear and distrust of
ing which we have had available
to membership corporations, char¬
corporations has not been elim¬ period of less than seven years.
itable corporations and the like.,
good corporation laws.
To some inated. The result is that a
You might well ask at this point
juris¬
extent the advances in corpora¬
This field of corporation law too
diction which wants to modern¬ what -difference
it
makes
to* a
was
not
of
one
statutes
■
.
.
'
.
■
.
,
•
tion
law
were
made
as
result
of
competition among the states, but
many of the states were and still
are
slow
nomic
cal
recognize
the
eco¬
advantage to themselves of
having
acts.
to
up
to
date
incorporation
Social, economic and politi¬
problems
vary
is different.
from
state
public opinion
It is only natural that
corporation law has made greater
Applicability
.
or
cor-,
•
The determination of what
our
point
a
record
another
respects
many
limited in time, that is, they could
not be incorporated for perpetual
to state and hence
political favor.
,
be
State
organization
affairs
internal
poration."
shall
authorize
to
•
in
-
is organ¬
organization
affairs
regulate
the
many
foreign
are
made
the
novel
Illinois
wildcat corporations that
wary of corpo¬
organized
under
their
A state's attractiveness
the
of the fact that the
governing
this
in
1956, and
North Carolina Act.-
investors'became
rations
such
construed
a
opportunity.that it is not to blame
prices too much and attracted
many
which
committee
one
reasons.
because
contains
the laws of this State, and nothing
1953,
the theories of the Model that
Maine, because of unsympathetic
decisions, others because of
greed for taxes, and still others
disrepute
in
New
I mentioned?
case
certificate of
a
reason
internal
and
1954, Tex¬
1955 used it but added
in
court
into
began
the
and
case
Act
inter¬
West¬
foreign corporation shall not
denied
ized
the
Wis¬
was
Then
1955, Virginia
provisions
larger
race
closely
1951.
Lines
of
the
"
corporations.
competitors lost out
Delaware's
in
question
dividend
wnich
this year North Dakota and Alas¬
ka.
In addition, North Carolina
history
a
in
we
solution.
study and
have made
the laws of this State, and nothing
the
Some of
used
were
perfect
more
Remember
Model
"A
be
edition,
succession: Oregon in
in
as
attitude
chance to remain the number
1950
District of Columbia in
corpora¬
that
as
the
provisions
consin
sympathetic and its legislature is
sympathetic.
It
has
not
been
in
Air
ity by
after
make
lowing provision in Section
Maryland Act of 1950 but the first
has
courts
of
state to follow it
favorable attitude toward busi¬
domicile
affairs.
in
"
immediately
the
the
on
ern
pub¬
was
1955.
aon't
much
nal
The
published
was
many
to
corporation
suggest
that we
required, but
First
have
further changes.
an
lished in
there
the Model proved useful.
so
ago.
other
and
reason
one
few
a
then
corporations
tried
start.
a
in
The
Since
I
is
York
been
the acknowl¬
edged victor. That victory is not
solely the result of having a good
corporation law. It does have that
tions.
draft
Section
have
found
work
A very substantially revised
present edition
for many years been
fell
about
A first
the
to
hind in the
cut
only
was
1940's.
publication
lawful
That
early
submitted
other, all the competitors fell be¬
ness
have
There
was prepared
in 1950 and
released at that time for wide cir¬
en¬
business and
a
easier.
favorably accepted by so
jurisdictions.
The
Model
the product of many years
labor.
The work commenced
the
foreign
We
the life of the foreign
so
1946.
competing for the
sought to
of
corporate
but
has
edition
Maine and Delaware, and then a
of other states, saw the
permission to incorporate for any
purpose.
Association
Bar
is
was
terprises.
greedy for taxes.
1817 the act
in
last
number
of
porations today could qualify.
the
beginning
have been kicked around in
states.
culation.
to
mit
of
New
the
New York
derived from
nues
woolen,
or
upon
its state government on reve¬
ran
linen
cotton
Act
said that New Jersey very largely
manufacture
make glass, to
make certain specified iron prod¬
ucts
and
certain
specified lead
products. Not many of the cor¬
of
been
many
corpora¬
during
tions could be formed under it to
goods,
American
19th century it was
decade of the
sponsored
'
"Corporations are not creators
of wealth. Corporations do not
go
i
out and work.
justice of
prerequi¬
a
Manufacturing Corporation Act of
1811 was of fairly general appli¬
Corporations,
fore, should
at pres¬
When I said that the New York
of
courts.
of
formation
the
bership
corpora¬
York
road¬
corporation
law
results from the change of public
attitude
and
thinking.
Public
opinion
makes
its
weight
felt
upon our legislatures and
upon
our
approval
the Supreme
to
business
a
in New
The im¬
blocks is public opinion.
provement
form
And
the
site
the
It
of
with
to
ent
overrule
removing
in
now
tion.
"be difficult
may
legal machinery
Manufacturing
York
general application.
Even
Georgia a petition must be
the court for permis¬
fairly
filed
sion
that it
Western
York
the
capitalized
backwardness
the
not until 1811 that
was
Corporation Act was adopted.
was
the first corporation law
fi¬
is
case
If
It
New
California
Air
determined.
does
veloped.
It
business.
tion
Corporation Laws
business
conducting
corporation
really popular
real bid for
a
Act
by the Section of Corporation,
Banking and Business Law of the
corporation laws was tha„ oi New
Jersey which, commencing in 1875
made
For Our State
first
the
Corporation
ness
Advantage
'
a
.
.
(194)
progress
others.
in
some
states
than
in
ize
its
corporation
laws
finds
it
to have the Model Act
being used in the places I have
mentioned.
Firms do not expect
company
unpopular to select the Delaware
statute
will
as
model. The opposiiton
a
most
assuredly rally
to organize a subsidiary
around
the
charge that the state is plan¬
ning to bid for corporation busi¬
And
ness.
as
a
way
to
be
defeat
corporation
charge
ware
will
bad thing to do.
surer
new
that
that
it
is
a
North
even
—
in Alaska
perhaps
not
proposed
than
to
basically
Dela¬
That fact is undoubtedly one of
the reasons why the Model Busi¬
tion Act
Corpora¬
published in 1952. Its
general form follows that of the
Business Corporation Act so that
was
policy.
To date, the
Corporation Act ha£
been, followed in Wisconsin, 1953,
Alabama,
1955, North Carolina,
1955, and Virginia, 1956. There
are
very similar acts in force in
legislative
Non-Profit
Firms
•
-
The Model Act applies not only
to
domestic
ized
Act
developing rapidly.
The Model Non-Profit
they will fit together in a state's
Covers Domestic and Foreign
no
law.
Model
Dakota
in Virginia or Texas.
regarded
There is
law
or
is
in
corporations
organ¬
states where the Act is
in
force, but also to foreign corpora¬
tions
doing
places.
As I
business
pointed
in
those
out in the
Illinois and
In
a
Missouri.
number
of
states
move¬
ments are afoot to use one or
both
Volume
186
Number 5654
.
.
.
The Commercial and Financial Chronicle
of
the Model Acts in a
corpora¬
tion law modernization
program.
I hesitate to be
specific about the
names of the states because it
is
so difficult to
keep up with all of
them.
Sometimes
nothing comes
of the work
despite great effort.
,Pn other occasions, enactment has
come
amazingly fast.
Alaska is
an
example of the latter. Before our
committee could confirm that the
Model Business
Corporation Act
had
been
introduced,
it
was
Among the states where
adopted.
committee
our
tact-with
tion
has
work
been
on
in
new
con¬
corpora¬
laws
are
Alabama, Arizona,
Arkansas, Colorado. Iowa, Missis¬
sippi,
New
Mexico.
New
Massachusetts, South
Utah.
I
am
of' which
do
we
not
others
are
know.
New York
financial
waked
its
is
a
state
to
up
the
corporation
has
are
Models
more
ments
ago
about how
tions
that
received
there
and
tion.
favorable
the
Act
now
in
New York
Act
which
about
of
'they
have
a
New
York
One
Model
Act
chance
of
would
job,
but
A
tially
a,
Rewriting
laws is
a
taking.
and
compare
the
we
more
them.
That is
to
be
used
one's
Our
time
law
and,
a
all
point
I
am
sure,
task
and
We
cor¬
that
Our committee
there
was
study and
we
need
a
are
whereby
trying to
cisions of
courts
our
The
of
are
they are usually
interpretations of our corporation
Strangely enough, there
been
overall
no
analysis of
a
statutory
viewpoint. There are encyclope¬
dias of corporation law but
they
law from
do not go at the problem in
rela-:
tion to the statutes.
We
wanted
to
to
tions
Model
would:
the
first,
each section
annota¬
prepare
show
and
Acts
the
which
of
source
it with
compare
reflects
did
state
and
Texas
regard.
1
in
relevant
num¬
a
bar
Association
of
court
the
the
reader
and
other
all
principal
text
material;
and
source
lastly, refer the reader
The
a
same
not
of
an
jurisdictions.
can
point
I
want
from
make
is
not the product merely
American Bar Association
are
ous
,
think,
Our object was
That
is
good
evidence
wrongly,, that the Dela¬
laws
ware
Model
are
Acts,
too
are
liberal.
The
that
we
have salable products.
■
But
ideally
suited.
They represent the collective ex¬
our
We
have
still
job
another
is not done.
now
embarked
upon
project to make the
Beginning, But Only
A Beginning, of Wisdom
"Several
contain
ernment;
Federal
spending programs appear to
expansion features. Federal Gov¬
built-in
commitments for
old-age assistance, Social
Security benefits, • and highway expenditures are
but a few
examples of Federal programs which will
increase under present
law provisions. Refunding
maturing issues of the public debt may be expected
to result in increases in interest
costs, so
long as the
present tight money conditions persist. In ^addition,
cost and
price increases tend to result in increasing
levels of Federal
spending, even when no',change
in real terms is made in
existing programs. Merely
continuing present programs, therefore, Criay well
result in rising levels of Federal
spending over the
next several years.
"Substantial
proud
defray the other
in
Federal
possible.
Financing the Research
We
estimated
that
require about four years.
our budget at $182,000 and set out to raise it by ask¬
ing law firms interested in cor¬
We estimated
the
project
M
-
as
this year of our Lord, 1957.
the understatement of
7
~-re¬
business, and
great
many were willing to do so.
Then, we found, fortunately, that
corporations too were interested
in
MINNEAPOLIS, Minn,
a year does not make
dent in a corporation's
to the American Bar
tion
(American
have
of
tax
Roanoke
cash
our
for
needs
our
We
about
and
at
position
In the past he
Building.
Thomson
with
was
McKinnon.
&
Founda¬
Bar Center,
purposes.
pledges
Brisley has become associ¬
with R. J. Steichen & Co.,
ated
1155
East Sixtieth Street, Chicago 37,
Illinois) they are deductible for
Federal
New¬
—
ton B.
donation fund, but it means a lot
to us. And since the contributions
are
all benefit.
(Special to The Financial Chronicle)
sand dollars
serious
we
With R. J. Steichen
undertaking and we got
very fine donations. A thou¬
our
some
a
corporation laws of our coun¬
try are improved, our country be¬
comes a
better place to carry on
tribute annually to our budget. A
WithE. F.Hutton
(Special to The Financial Chronicle)
\
now
will
moment
carry
CHICAGO, 111.—William L. Car¬
roll has become associated with E.
one-half
the
us
until about December of this year.
We are going ahead on faith and
th^^nbemadl^'L^ofvo"8
part of
F.
Hutton
Trade
with
&
Company,
Building.
the
First
He
was
of
formerly
Board
National
of
Bank
Chicago.
which is primarily based
prospecting in a group that
contain a higher ratio, of
investment prospects. The success
of this program will be achieved
through consistency, a short and
concise form letter offering a spe¬
£
with
be
can
help
may
and
made
a
your
activities
build
to
you
which
and
larger
a
productive clientele.
more
Train your mind, your eyes and
to record possible
your ears,
clients
whom
When
you
watch
for
you
contact,
mav
the
read
clues
new
daily
paper
callv Either make an
appointment to meet the prospect
convenience,
or
in the
mail follow-
you reyou can then
Today, the modern way to
time is to use the telephone.
you
letter
mail
can
prepared that
these
people
to
which contains
"idea" that may
This letter
an
be of interest to them.
should
be
timely
and
then
fol¬
lowed up with other mailings
limited
a
for
present time, if your firm
exempt bonds," the
attractive
income
return
very
"tax
provided
by these securities can
brought to the attention of
those people you think may be in
the upper income brackets. If you
be
have
the
a
mailing list that contains
of
names
terested
in
people who
"tax free"
.
_
'
vou
suggest in your letter that you
can
placing
are
on
bonds
.
in-
are
this
the
list
to
prospect's
receive
name
attractive
If
your
research
developing
that might
department
is
interesting situations
be suitable mediums
same
approach \(the
offering
brief
complete
a
letter
investment
service, and the special situation
follow up). It is important to give
your
People
After
on
have
you
their part.
sent
several
mailings to the prospect, wait un¬
til you have an attractive bond or
stock and make the offering. You
can
do
this
providing
over
you
the
telephone
introduce yourself
the
name
is
not.
'
ou
confidenceTnsplridg
aeciae to
give it
don't become discouraged
a
trial
I know
nin„
into> ^
miiiions
that have
k^pd established- because someone
after them in just this way.
went
Pacific Power & Light
Offering Underwritten
Telephone Contacting
save
Pacific
Power
&
Light
Co.
is
offering its common stockholders
approach that you use, however, rights to subscribe at $28 per
is what takes your telephone con- share- for 376,600 additional comversation out of the "pitch class" mon shares at the rate of one
and places it on a highly dignified share for each 10 shares held on
basis.
One
The
Stock
Exchange firm
this approach; as
developed
result of their continued adver-
offering
tising
well
researched
reports, and assistance in developing planned investment programs
they receive letters from investors
who show
in
some
degree of interest
opening an account.
mailed in
naming
a
answer
A letter is
to such inquiries
July 10, 1957. Rights will? expire
a*
P>nl* (EDT) on Aug. 1,
1957.
An underwriting group
headed by Lehman Brothers;
Eastman Dillon, Union Securities
& Co.^ Bear,, Stearns & Co. and
Witter & Cor will purchase
anY unsubscribed' shares,
Net proceeds from the sale of
the
together
stock
specific registered rep- funds will be applied
resentative, iKnt -Jthe suggestioni is pany to its
and T tbn nvAf<r\n/i4
V/-1
mil
t> _
ti r\
put forward that if the prospective
new
client
wishes
further
information
its
offerings.
whether
worthwhile following or
a
At the
handles
turndown
a
determine
has
period.
If
ability to meet
telephone conversation. If
ceive
brief form
your own
case
certain well known securities
R R possible you may obtain his
interest and order during the
guide you in
locating probable investors. Busi¬
ness items, social
events, and re¬
ports concerning people who are
prominent and influential, should
to
"and
you
your
at his
ups,
Y°{! Sh0UhW Uesending £'i<;is
^ P^ant^ncl
have been
letters
everyday's
that
President's
qualify
the
become sponsors
and agree to con¬
As
by this project.
being served
poration law to
cific benefit, several
amount of effort
This may well
lieve, to have been a part of this
great movement for moderniza¬
tion of corporation laws. The in¬
terests of every corporation are
job
would
of
will be proud too, I be¬
They
the
PROSPECTING
prospect A SPECIFIC IDEA.
are too busy to become interested in generalities. The idea
must appeal to their natural desire
to obtain a benefit, with the least
Budget Message of January, 1957."—
Subcommittee on Fiscal Policy of the Joint Eco¬
to see their names listed
those who have made it
among
By JOHN DUTTON
spending in
subsequent years will require down¬
ward revision of existing programs as well as fore¬
going new expenditures. -Rising prices And costs
particularly in defense spending, suggest that such
revisions may well be necessary even to hold fiscal
1958 expenditures to the level estimated-In the
fiscal 1958 and
nomic Committee.
of
expenses
project.
our
Securities Salesman's Corner
for capital gains, you can use this
reductions
have made about
should
a
A
suggestions that many of them
our work. I sin¬
ful
no
ages,
the product
of work by law¬
and businessmen too numer¬
to count, from all parts of our
country.
made available to
be placed on a "suspect list." Have
or
deeply grateful to them not only
for their support but for the help¬
Chicago
us, but the
place
now
They
it
the
at
the
of
number
a
upon
of untold hours
yers
.
with
facilities
that
note
corporations- have become spon¬
sors
of our project and we are
into
in
about
preliminary
to
entered
agreement
its
great .many of the states.
committee,
drafting. However, .as I
already pointed out
one
would probably be
open to attack
the
each
that the Model Acts—both of them
—are
all
to
to place in that great state attend¬
ing ].discU5sio.il meetings and an¬
alyzing their act, our act and the
acts of
im¬
decisions;
generally upon
state of the law; fifth, refer
to
and
through
Virginia
spent
went
the
relevant statutes in all the Ameri¬
mention
its
analyze
comment
the
went
third,
fourth,
re-analysis
Texas
ritories;
Sponsors
I
and
great
statutes.
corporation
could not do
we
funds to give us. It was up to us
to find the money to pay our staff
de¬
importance but
has
huge
a
cerely believe that when our job
has been finished, they will be
largely statutory. Corporations
creatures of statute.
were
we
was
American Bar Foundation had
American corporation law
history
that the basis for corporation law
are
task
our
been justified. Our
American Bar Center in
you will have
brief summary of
my
that
one
cooperative
a
such
that
from
the
Bar Foundation
were
believe
faith so far has
staff has been
working since July 1, 1956 and
we are making real progress.
fortunately
a
listed the support of the American
Preparing Annotations
noted
annotation
by ourselves. We successfully en¬
do it.
I
each
realized
and
one
thought
for
now
in
setting for ourselves
were
comparing the statutes of all
the states.
provide
bird's eye view of the law.
given to someone, I mentioned the
ideal procedure of first
studying
A committee of the Texas
Bar
stand¬
from the
mapy people who
to
mo¬
state's
a
that
portant
years
have
rightly
if
ours.
three
of
the
laws
made
work.
point,
would
another
that
would
mistake from
with
they
particularly, deserve
be shortened.
One could reach for the
Delaware
make
critical
work.
our
study
starting
edition
committee
of
sort
reliable standard
a
job
which
of suggestions by the
Wisconsin.
*
too much to under¬
as
labor
them. We
011
ber
and one would
try to nar¬
his labors irr some fashion.
If
one could find a
number
a
carefully studied by us.
I
it is only fair to say that
1953
our
foreign countries, with the pur¬
taking the best from all of
take
change
think
pose of
row
their
compared
was
the states and
perhaps even those
of.
of
turned the tables
Each
the
of
laws
poration
few
speculated
might go about the
They had public forums other comparable
provisions
in
and bar meetings
extending over 'the statutes of the various
states;
a considerable
period of time.
second, analyze the relevant stat¬
When they finished their work,
utes in all of the states and ter¬
legisla¬
statutes
the
A
I
study.
new
a
its full form, did a very
job. Their bar association
finally accepted our product, sec¬
tion
by
section,
after
critical
talk
upon
one should
the Model in substan¬
and with other state laws and
law
corporation
substantial under¬
Ideally,
the
compared the Model Act
provisions with the old Wisconsin
state's
a
very
how
of states,,
forward.
step
use
researched
shall have to wait and see.
new
law based
upon
either
be
about
our
useful.
when
one
job of modernizing
is
great
me
finished
we
careful
we
would
gives
,
up
state to
ture than would the
Delaware act
*
fact
When
worried
that
much
our
I
just
have
in
success
products.
other
confidence.
the Delaware
based
middle-
are
Revived Model Law
study.
feeling that
act
committee
ative.
know
little
by
has
They have
been attacked by conservatives on
the ground that they are too lib¬
eral
and
by professors on the
ground that they are too conserv¬
course
lawyers
impressed
Both acts
of-the-road
many New
better than
do the New York statutes. I
York
be
Our
style.
ideas.
ary
Corpora¬
under
will
you
has been* made to sell revolution¬
mention
Business
is
However, I have heard
country.
When you
Acts I believe
Model
sought conciseness, simplicity, and
clarity of expression, ^o attempt
legislative commission has been
appointed and is doing a careful,
thorough job.
Both Model Acts
have
the
the
their
antique.
A
of
study
sec¬
Corporation Act would
when subjected to out¬
side scrutiny. Wisconsin, the first
realization
laws
diversified
practice, coming from all
stand
important
very
which
widely
rate
a
Business
Status in New York
,
of
group of lawyers in active corpo¬
York,
Dakota and
there
sure
perience
35
(195)
that
party.
In
he
should
this
way,
contact
if
^
i
_
Pacific
thfc
with other
by the com-
construction program, ^
j
—
Power
o
t
& Light
is'
^
Co.
engaged primarily in the business
generating, purchasing, trans¬
the mitting,, distributing and selling
of
ProsPect receives a telephone call electric energy in Oregon, Washfrom the registered representative ington, Wyoming, Montana and
jt is tied in specifically with his Idaho.
,
reQuest for service, for a report,
other members of the underor anything else that he may have x^riting group-include; Hayden,
reQuested. No attempt is made to g^one & Go.j A. G. Becker & Co.
se" any specific security but a jnc>j Foster & Marshall'; Pacific
Personal contact is established.
Northwest Co.; Walston & Co.,
The plan I have outlined here Inc.; Johnston, Lemon & Co.; and
is definitely within the realm of W. C. Langley & Co.
business practice, but it
good
must
and
be
used
with the
without
David A. Gimbel
Pressure
realization that the
.
»
^
j
associated
passed
majority of names you place on
David A. Gimbel,
your
suspect- list
and
follow with Lehman Brothers,
through via the mails and by tele- away at the age of 29 following
phone, will for one reason
or an extended illness. Mr.
another not be productive.
It is. was the son of Bernard F. Gimbel,
however,- a
direct and positive Chairman of the board of Gimbel
Gimbel
method of using the law of aver-
Brothers, Inc.
56
The Commercial and, Financial Chronicle
i
(196)
.
.
Thursday, July 11, 1957
.
★ INDICATES
Securities
in
Now
184,000
Business—Purchase and resale
purposes.
•
of
Price —To
July
200,000 shares of common stock
(par $1).
supplied by amendment. Proceeds — For
expansion, repayment of loans arid for working capital.
Underwriter—To be named
24
June
Segundo,
Calif.
Income
Fund,
500,000
shares
market.
writer—None.
ment Adviser
H.
investment.
Invest¬
C.l.T. Financial
Cycle Research Corp., New
June
Price—$2
general corporate purposes. Office—Dallas,
Underwriter—Peoples Securities Co., J. D. Grey,
of New Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
2
(letter
stock.
of
stock
Price—At market
holders.
Office—501
Bros.
dividends
to
fractional
To
Pro¬
(letter of notification)
(par $2.50). Price—$10
St., Birmingham 3, Ala.
&
share.
per,
Proceeds—To
and
28
supplied
of
stock
common
Conticca
(par 50 cents).
Road, Port Washington, L. I., N. Y.
Kidder, Peabody & Co., New York.
franchise
on
—Distributors
holders.
July 17.
of
This
offer
Price—$23
general
per
merchandise.
(par
100).
business
Exchange
Mines, Ltd.
as
of June 14, 1957 was $1.82 bid
International
Mineral
Resources, Inc.
June 11 (letter of notification) 300,000 shares of com¬
mon
stock (par 10 cents).
Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—c/o Registrar &
Transfer Agent, Nevada Agency & Trust
Co., Cheney
expires at 3:30
share. Business
Bldg.,
Reno, Nev.
Denver, Colo. ,/
Underwriter—
Underwriter—Birkenmayer
&
Co.,
Continental Mines & Metals Corp., Paterson, N.J.
April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
and development of properties.
Underwriter — Leward
M. Lister & Co., Boston, Mass.
Batteries, Inc.
March 28
(letter of notification) 14,000 shares of com¬
mon stock
(par \$10) to be offered for subscription
by
stockholders and employees.
Price—$12.50 per share.
Proceeds
For
machinery, equipment, inventories and
working capital. Office
Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter—None.
Florida Trust,
March
Cougar Mine Development Corp.
March 15 (letter of notification) 560,000 shares of com¬
mon stock
(par one cent). Price — 50 cents per share
Proceeds
For diamond drilling on company's lands,
prospecting expenses, working capital and other corpor¬
ate purposes.
Office—83 Campfield St., Irvington, N. J.
Calidyne Corp., Winchester, Mass,
May 1 filed $1,250,000 of Limited Partnership Interests to
Underwriter—Roth & Co., Maplewood, N. J.
share). Proceeds—To
equipment. Underwriter—None. Robert C.
Lewis, Philip
Efromson and Thomas
Gouzouia, all of Winchester
Mass., are the general partners of this Massachusetts
Herrin Co., Seattle,
C.
•
June
7
cents).
filed
300,000
Price
$1
shares
per share.
and
development program.
Co., Inc., New York.
'
Carolina
Inc.,
New York
(7/15-17)
common
stock (par 10
Proceeds—For exploration
by
due
of
51/2%
July 15,
common
convertible
subordi¬
1977, being offered for
stockholders
on
the
basis
of
writers—Smith, .Barney & Co. and Van Alstyne, Noel &
Co., both of New York; and Newhard, Cook & Co.,-St.
Louis, Mo.
-
•
Federal
.
.
.......
Insurance Co.
June 7 filed 400,000 shares of capital stock
(par $4) be¬
ing offered in exchange for 100,000 shares of Colonial
Life
the
and
South.
Pompano Beach, Fla.
certificates of beneficial
interest
in
certificate.
per
Fluorspar Corp. of America
May 28 (letter of notification) 30,000 shares of common
stock (par $1) to be offered for subscription by common
stockholders on the basis of one new share for each four
Price—$8.50 per share.
Office—433
ing operations.
Ore.
Underwriter—None.
S. E.
Proceeds—For min¬
74th Ave., Portland,
-
Frigikar Corp.
June
6
9,000 shares of common
(letter of notification)
At market (estimated
Proceeds—To go to Daniel D. Dilling¬
ham.
Office—1602 Cochran St., Dallas, Texas.
Under¬
writer—Muir Investment Corp., San Antonio, Texas.
stock
50
(par
Price
cents).
—
General Aniline & Film Corp.,
New York
of common A stock (no par)
and 1,537,500 shares of common B stock (par $1).
Pro¬
ceeds—To the Attorney General of the United States.
Underwriter—To be determined by competitive bidding.
Probable bidders: Blyth & Co.,
Insurance Co. of America capital
stock
Inc., and The First Bos¬
(jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids — Had been
scheduled to be received up to 3:45 p.m. (EDT) on May
ton Corp.
13 at Room
D. C., but
•
654, 101 Indiana Ave., N. W., Washington 25,
bidding has been postponed.
Automatics
General
Corp., Atlanta, Ga.
May 23 (letter of notification) 100,000 shares of common
stock (par $1).
Price—$2 per share. Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of contrpls; and for other corporate purposes. Ad¬
dress—c/o Positronic Corp., 2572 Ridgemore Road, N. W.,
Ga.
Atlanta,
&
Underwriters—Armstrong
Co., Atlanta,
Ga.
General
Credit, Inc., Washington, D. C.
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
and working capital. Underwriter—None
Offering to be made through selected dealers.
For expansion
named.
Application is still pending with SEC.
General
Parking,
Inc.
notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
June 18 (letter of
General Telephone Corp., New York
May 24 filed 1,480,787 shares of common stock (par $10)
and 170,000 shares of 5.28% convertible preferred stock
(par $50) being offered in exchange for common and
basis
of
of
1.3
Telephone Co. on the
of General common for each share
of Peninsular
stocks
preferred
shares
Peninsular common,
and one-half share of General'
share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
of preferred stock will be made unless at least 80% of
the
Peninsular preferred
stock is exchanged.
Offer
will expire on July 15. Dealer-Managers—Paine, Web¬
ber, Jackson & Curtis and Stone & Webster Securities
Corp.
f
Genie
Crafo
(par $107
Corp., Washington,
D. C.
(letter of notification) $150,000 of 10-year 6%
subordinate convertible debentures.
Price—At par (in
June
28
short term
..
and
Underwriter—None.
denominations
July 9, 1957; rights to expire on
July 23. Price—100% of principal amount.
Proceeds—
For. capital expenditures and working capital.
Under¬
March 29 filed
work,-
Manufacturing Co.
$3,390,000
debentures
850
Price—$1,000
of stock held of record
Mines,^ Inc., Kings Mountain, N. C.
and development
Trust.
$100 principal amount of debentures for each 20 shares
Underwriter—R. G Worth &
679,469 shares of common stock, of which
shares are to be offered for
subscription by
stockholders at the rate of five additional
shares for each
four shares held; and the
remainder will be offered tothe public.
Price—At par. ($1 per share).. Proceeds-.
selling stockholders. Underwriter
Wash.
Electric
filed
subscription
of
loans, for exploration
18
nated
283,676
To repay
Emerson
June
Limited
For industrial
preferred
Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
machinery and equipment;
and to reduce
outstanding demand notes. Business
Pro¬
duces electro-dynamic shaker and
other vibration test
Partnership.
Cameron Industries,
filed
4
—
be offered first to
present limited partners at the rate of
one $1,000 unit for each
$1,000 of his present investment;
then to public.
Price—$1,000 per unit. Proceeds — To
construct plant; to purchase
—
Mississippi
of
Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.
—
—
development
Underwriter—None.
notes
debt in the total
Continental
Proceeds
employees.
and
officers
and
—
Underwriter
share.
Jan. 14 filed 426,988 shares
None.
C & D
time prior to Nov. 30, 1959 at $4.50
The price of the remaining 2,500,000 shares
will be $5 each, of which 500,000 shares are to be re¬
served for exercise of options to be granted to directors,
tional shares at any
per
stockholders.
payable, including bank loans, and long
sum of approximately
$1,030,000;
for new equipment; and for working capital.
Under¬
writers
Allen Shaw & Co., 405 Lexington Ave., New
York 17, N. Y.; and Shaw & Co., San
Marino, Calif.
term
be
Butler
(CDT)
stock
selling
13 filed
current
20,000
Brothers, Chicago, III.
May 28 filed 40,000 shares of common stock
(par $15)
being offered for subscription by certain of the Ben
p.m.
Me.
common
—
Price—To
Shore
Franklin
Sanford,
Corp., Chicago, III.
558,100 shares of class A common stock
(par $1). Price—$5 per share. Proceeds
To discharge
by amendment.
(Expected at about $15 per
Proceeds—To selling stockholders.
Office—80
share.)
x—
Corp.,
Proceeds—To
$1.85 asked, per share). Proceeds—For mining ex¬
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬
March
Industries
(letter
of
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
$5.50 per share).
treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,
Montreal, Canada.
Underwriter—L. D.
Corp. (7/15-19)
notification) not exceeding
of
penses.
York, N. Y.
shares
Stock
ronto
Mine
ceeds—To go to selling stockholder.
Friedman & Co., Inc., New
June
market.
Miss.
April 10. filed 10,000,000 shares of common stock (par
Proceeds—
June 26 (letter of notification) 150,000 shares of common
stock (par $7).
Price—At market (closing price on To¬
common
Corp., Sutherlin, Ore.
(letter of notification) 71,710 shares of common
(par 10 cents).
Price — 75 cents per share.
Pro¬
British
Aircraft
y
of fertilizer
manufacture
Underwriter—Mississippi Chemical
Consolidated Fenimore Iron
24,958'shares of
users
share).
for
leases and royalty agreement. Underwriter—
Southeastern Securities Corp., New York.
Feb. 11
stock
per
facilities
mining
Office—1210 Gloucester St.,
Brunswick, Ga. Underwriter — None. Reuben Henry
Shipp is Vice-President and' Secretary.
Oil
($25
par
operate
Comico Corp., Memphis, Tenn. 7/15-16)
May 2 filed 750,000 shares of common stock. Price—$2
per share. Proceeds—To construct mill; for payment on
increase capital and surplus.
Bonanza
and
—
Trask & Co., both of New York.
Fidelity Union Trust Co., Newark,
'
shares held.
Underwriter—None.
★ Banner Life Insurance Co.
stock
Colonial
Price—At
Underwriter—None.
July 3
Price—At
construct
July 5 filed 248,132 shares of
Insurance Co.
312 N. 23rd
—
Underwriter — Salomon
Offering—To be a continuous one,
Corp., Yazoo City, Miss.
held; rights to expire July 30, 1957. Price—$11
share. Proceeds — To increase capital and surplus
Office
Hutzler.
of purchasing receivables and
purposes.
anhydrous ammonia.
share¬
shares
•
debentures, having
maturity dates. Price—To be
including July 26,
The First Boston
and
to
Dealer-Managers
J.
the
of series
be offered for safe to farmers and other
April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11
accounts.
&
purpose
corporate
materials.
•
Marine
(7/15)
Corp., New York
$100,000,000
Corp., Yazoo City, Miss.
May 1 filed 150,000 shares of class C common stock to
Newport & Gap Pipe, Newport, Del.
Fire &
or
Coastal Chemical
Underwriter—None.
Bankers
subsidiary
running at least until April 1, 1959.
65 shares of class "A"
55 shares of common
(about $34.50 per share).
of
payment
and
other
for
9
notification)
common
ceeds—For
per
filed
24
business for the
capital and
non-voting
its
to be operated by trust;
supplied by amendment. Proceeds—For refunding other
debt and for furnishing additional working funds to sub¬
sidiaries to be used by them in the ordinary course of
Investors
★ Artesian Water Co.
and
company
the plan
(U. S. funds). Proceeds—For exploration costs/etc. Of¬
Montreal, Canada. Underwriter—
Jean R. Veditz Co., Inc., 160 Broadway, New York.
>Tex.
July
in
continue
—
Colonial
acceptance by
of the Colonial
80%
by not less than
Agent
each
for
upon
First Mississippi Corp., Jackson,
fice—5616 Park Ave.,
Under¬
President.
of the
Interests
an
Chess Uranium Corp.
May 14 (letter of notification) 600,000 shares of common
stock
(par .$1—Canadian).
Price—50 cents per share.
Corp.
50,000,000 shares of common stock (par one
per share.
Proceeds — For working
Feb. 15 filed
cent).
N.
(no par) to be purchased by
different interest rates and
Provident
Exchange
ISSUE
stock, or, at option of Fed¬
of Colonial
will
Spencer
and
Corp.
shares
become effective
extended.
unless
Hamilton, Ohio
undesignated number
writer—None.
York.
American
Dillon,
one
Inc., New York
capital stock (par $1).
Jackson is
Securities
—
Eastman
—
employees' contributions are not to exceed $300,000 in
year.
Proceeds—For the benefit of the plan. Under¬
(7/18-19)
of
Proceeds—For
Burton
stock
common
employees
key
Alstyne, Noel & Co., New York.
Price—At
supplied by
Underwriters
(letter of notification)
1
affiliate.
by amendment.
250,000 shares of common stock (par 50
cents). Price—$5.50 per share.
Proceeds—For working
capital and other corporate purposes. Underwriter-—Van
American
of common stock (par SI).
amendment. Proceeds — To
stockholders.
of shares of
filed
May 24 filed
be
Offer
shares.
REVISED
Federal
four
of
Offer will
holders of 90%
• Champion Paper & Fibre Co.,
Price—To be
El
500,000 shares
basis
the
eral, acceptance
(7/24)
Inc.
Securities & Co., New York.
Union
Alsco, Inc., Akron, Ohio
Corp.,
Products,
filed
1
certain
President.
Altamil
Carter
July
fruits grown in Brazil and other countries. Under¬
writer—None. Lelloy R. Haynes, of Pasadena, Calif., is
•
Share.
dent
oil
June 28 filed
on
working capital. Underwriter — None.
Vancouver, B. C., Canada, is Presi¬
and principal stockholder.
PREVIOUS
ITEMS
•
construction and
shares of common stock, of which
02,000 shares are-taJbe offered to public and 92,000 shares
issued to promoters. Price—To public, $1 per share; no,
proceeds from sale to promoters. Proceeds—For general
corporate
Registration
A. S. MacCulloch of
Expansion Corp., Pasadena, Calif.
All America
May 3 filed
ADDITIONS
SINCE
of
$100
Proceeds—To
each).
obligations and for working capital.
18th
St., N. W., Washington, D. C.
Whitney & Co., Inc., Washington, D. C.
1022
discharge
Office—
Underwriter
—
Georgia Casualty & Surety Co- - /
May 10 (letter of notification) 10,000 shares of common
stock (par $5) to be offered first to> stockholders and
agents, then to the public. Price—$30 per : share. Pr©-^
ceeds
To expand and finance the company's regular :
line of business. Offfee—70 Fairlie> St., N_ W., Atlanta,
'Ga. " Underwriter—None.- Dan D. Dominey is President. >•
—
.
.
.
*
1
Volume
Number 5654
186
.
The Commercial and Financial Chronicle
.
.
(197)
Getty Oil Co., Wilmington, Del.
17 filed 100,000 shares of common stock (par $4)
June
to
offered
be
for
sale
time
from
to
time
on
the
New
Stock
York
Exchange. Certain private placements may
be made. Price—Either at the market or at a price not
lower than the bid price nor higher than the asking
price quoted
the Exchange at time of such offering.
President, who is the selling
on
Proceeds—To J. Paul Getty,
stockholder.
Gibbs
May
July
2
in
Newark, N. J.
Holy
filed
stock.
Land
Controls Corp.
(letter of notification)
shares
45,000
(par $5), of which 41,491 shares
of class A
to be offered
are
Import Corp.,
Price—At par
($3
share).
per
working, capital, etc.
Co., Houston, Tex.
ventory,
&
Horace
June 27
common
Proceeds—For in¬
Underwriter—Benjamin
Fund, Inc., Springfield, III.
100,000 shares of capital stock (par $1).
market.
Proceeds—For
investment.
Francisco, Calif.
(par
cent). Price—$1 per share. Proceeds—To equip and
five super launderettes and for
working cap¬
ital.
Underwriters—Names to be supplied by amend¬
one
establish
ment.
'
International
rate of
Fidelity Insurance Co.
Distrib¬
Investment
Manager—Horace Mann Investors,
Inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St.,
Springfield, 111.
one
share for each
new
■*
(7/15)
shares held.
seven
-—To be supplied
by amendment.
ing capital, etc.
Dallas, Texas.
Underwriter—Franklin
Mann
filed
utor and
International Duplex Corp., San
Dec. 21, 19d6 fiied 500,000 shares of common stock
March 28 filed 100,000 shares of common stock
(no par)
to be offered for subscrintion by
stockholders at the
Houston, Texas
(letter of notification) 100,000 shares of
Price—At
it Graphic
stock
Haydu Electronic Products, Inc.
(letter of notification) 100,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital. Office—1426 West Front
St., Plainfield, N. J. Underwriter—Berry & Co., Plainfield and
Feb. 27
Moulding Corp.
$1,000,000 of 6% convertible debentures
due March 31, 1967.
Price—At par. Proceeds—To in¬
crease
company's activities and for working capital.
Office—Henderson, Ky. Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind.
22
.
June 3
Underwriter—None.
Automatic
of a new agreement to be dated Oct.
15, 1957 and
expire Oct. 14, 1967.
-
means
Uo
37
' V#'
f:
.
International
June
and
10
filed
to
stock
share and
purchase
to
be
offered
stock
common
354,420
in
additional
units
three warrants to buy
Price—$3.75
Securities
Co.,
Investments, Inc.
118,140 shares of
warrants
Common
Insurance
Price
Proceeds—For work¬
of
three
(par $1)
shares
one
of
common
common
shares.
unit.
The
Ignacio Oil & Gas Co., Denver, Colo.
May 20 filed 650,000 shares of common stock
Each warrant entitles holder to
share at $2.75 per share. Proceeds
—To acquire stock of fire insurance unit and for
general
to
cents).
corporate purposes.
exchange for class B stock of Technical Charts, Inc.
Graphic shares for each Technical share.
at rate of 8.0484
remaining 3,509 shares are to be offered for sale
employees of subsidiaries. Price—$6.662a per share.
Proceeds—For working capital.
Office—189 Van Rens¬
selaer St., Buffalo, N. Y.
Underwriter—None.
it Graybar Electric Co., Inc., New York
July 2 filed voting trust certificates relating to 675,000
shares
of
All
stock.
common
of the 647,217
issued and
outstanding shares of common stock is presently held
under a voting trust agreement which expires Jan. 14,
1958.
of
The directors have voted to recommend to holders
voting trust certiifcates renewal of this agreement by
purchase
(par 50
Price—$1 per share. Proceeds—For drilling and
completion of test wells; for acquisition and exploration
of additional
properties; and for working capital. Office
—1749 Pennsylvania
St., Denver 3, Colo. Underwriter—
None.
W. Clay Merideth is President.
Inland Steel Co.
June
28
(7/17)
$50,000,000 of first mortgage bonds,
filed
se¬
ries K, due 1987.
Price—To be supplied by amendment.
construction and improvement
program.
Proceeds—For
Underwriter—Kuhn, Loeb & Co., New York.
Office — Englewood, Colo. Under¬
writer—American Underwriters, Inc., also of
Englewood,
Colo.
it Inter-River Corp.
<
July 1 (letter of notification) 300,000 shares of common
capital stock. Price—At par ($1 per share). Proceeds—
For
mining expenses. Office—555 San Pablo Drive, Las
Vegas, Nev. Underwriter—None.
Isthmus
Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—To purchase a ship and for
working capital. Under-"*
writer—Anderson Cook Co., Inc., Palm
Beach, Fla.
May 21
stock
mon
NEW
ISSUE
July 24
Minneapolis, St. Paul & Sault Ste. Marie Ry.
Carter
Equip. Trust Ctfs.
(Bids
$1,740,000
CDT)
noon
Seaboard Air Line RR
(Bids
invited)
British Industries Corp
$5,460,000
G.
&
....Common
Inc.)
C.
Hutzler)
&
(Albert
Co.,
(Bids
11:30
$206,250
Inc.)
EDT)
shares
Western
and
Common
class
1,000
25,886 class A
EDT)
(Tuesday)
(Minn.)
CDT)
__Bonds
$18,000,000
-
invited)
$90,000,000
be
Natural
(Bids
Bonds
$15,000,000
(Tuesday)
invited)
(Wednesday)
Co
2, Colo.
(Bids
New
$25,000,000
Corp., Ardmore, Pa.
$250,000 of 6% renewable subordinated
Mascot
Mines, Inc., Kellogg, Idaho
(letter of notification) 800,000 shares of common
(17% cents per share). Proceeds
—For mining expenses.
Office—Sidney Bldg., Kelloggy
Idaho, Malcolm C. Brown is President. Underwriter—
Price—At par
McLouth
3
Steel
filed
amendment.
Corp.
105,000
preferred stock
invited)
be
Finance
filed
28
debentures, due upon demand May 1, 1967, without de¬
May 1, 1972. Price—At par (in units of $100 and
$500 each). Proceeds—For working capital. Office—17
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New York; and Berry & Co., Plainfield, N. J.
July
__Equipment Trust Ctfs.
to
common
Office—Suite 504, Mile High Center, Den¬
Underwriter—None.
Standard Securities Corp., Spokane,
Idaho.
(Wednesday)
Norfolk & Western Ry.
(Wednesday)
Street,
it' Lake Central Airlines, Inc.
July 1 (letter of notification) $300,000 of 6% convertible
subordinated debentures, due July 1, 1962. Price—At
par.
Proceeds—For working capital. Office—-Weir Cook Air¬
port, Indianapolis, Ind. Underwriter—None.
Debentures
EDT)
a.m.
Debentures
$30,000,000
(Tuesday)
September 18
.t
Broad
June 3
$50,000,000
invited)
Gas
11:30
67
mand
(Wednesday)
invited)
September 17
Eastman
•
to
Corp.,
Price—At par ($1 per share). Proceeds—For min¬
March
Debentures
Jersey Bell Telephone Co
Common
by
be
Utilities
Mining Co.
(letter of notification) 150,000 shares of
stock.
Marion
(Tuesday)
September 11
New
Consolidated
$15,000,000
Union Securities & Co.) 333,382 shares
July 17
invitdd)
Bonds
to
Public
4, N. Y.
stock.
Bonds
stockholders—underwritten
to
Dillon,
be
Co
(Bids
Minneapolis-Honeywell Regulator Co
(Offering
Power
(Tuesday)
a.m.
be
York
ver
Equipment Trust Ctfs.
to
September 10
Duke
Common
400,000 shares
Jersey Central Power & Light Co.
11
be
&
Co.; Salomon Bros. & Hutzler and Merrill
Lynch, Pierce, Fenner & Beane (jointly). Bids—To be
received up to 11 a.m. (EDT) on
July 16 at office of
ing expenses.
(Wednesday)
a.m.
to
(Bids
Hemisphere Petroleum Co
(Bids
to
(Bids
shares
B
(Sanders & Co. aiid Rauscher. Pierce & Co., Inc.)
July 16
$12,000,000
$16,000,000
McCormick & Co.)
and
& Co.
(Bids
rities
July 1
Louisville Gas & Electric Co
Thomas Industries, Inc
(Kidder, Peabody
Co.)
&
September 4
..Bonds
Co
a.m.
Noyes
August 20
.........Common
bidding.
Probable bidders: Halsey, Stuart &
Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
Co.
it Keystone-Peerless
Debentures
10
petitive
General
Pacific Telephone & Telegraph Co
70,000 shares
Sons)
Service
(Bids
.
tion program.
$6,000,000
Northern States Power Co.
-
.
$1,900,000
& Gas Corp._
Electric
Texas
by
Class A Common
Edwards &
G.
Debentures
(Tuesday)
August 13
and The Robinson-
Polymer Corp.
Seminole Oil
$10,500,000
Co
(Bids
underwritten
be
Inc.
shares
Equip. Trust Ctfs.
Norfolk & Western Ry
—Common
& Co.,
500,000
$50,000,000
EDT)
noon
(Hemphill,
__Common
100,000 shares
Humphrey Co., Inc.)
(A.
$1,500,000
Co
(Clement A. Evans
Co.)
(Thursday)
July 31
Common
Corp.)
to stockholders—to
Franklin Securities Co.)
Investment
Tea
$100,000,000
Fidelity Insurance Co
(Offering
Phoenix
Corp.)
Brothers)
July 30
National
—
Securities
(Southeastern
International
(Bids
Debentures
&
Bros.
Comico Corp.
Boston
July 25
___Trust Notes
I. T. Financial Corp
(Salomon
First
Southern Pacific Co.___
$8,000,000
CDT)
noon
&
$300,000
Chicago & North Western Ry
(Bids
(Ahe
Common
Co.,
Securities
Preferred
Lehman
______
Worth
Union
(Goldman, Sachs & Co.; Halsey, Stuart <fe Co. Inc.; and
Industries, Inc....
(R.
Dillon,
Common
Sears Roebuck Acceptance Corp
(Kidder, Peabody & Co.) $300,000
Cameron
(Eastman
due
Proceeds—To repay bank loans and for construc¬
Underwriter—To be determined by com¬
1987.
McLouth Steel Corp
(Monday)
July 15
Jersey Central Power & Light Co. (7/16)
29 fiied $15,000,000 of first mortgage bonds
May
(Wednesday)
Products, Inc
Equip. Trust Ctfs.
be
to
CALENDAR
(Thursday)
July 11
per
one common
Wash., and Kellogg,
(7/24)
shares
(par $100).
of
cumulative
Price—To
be
convertible
supplied by
Proceeds—For expansion program.
Under¬
writer—The First Boston Corp., New York.
Mercast
(Bids
Inland
Steel
be
to
invited)
$4,965,000
Bonds
&
Loeb
$50,000,000
Co.)
(Bids
Common
(Blyth & Co., Inc.)
175,000 shares
(Bids
Common
Higginson
Corp.)
200,000
&
(Bids
$8,000,000
be
Southwestern
Common
invited)
be
400.000
Chicago, Rock Island & Pacific RR
(Bids
noon
July
$3,000,000
CDT)
Bell
Telephone
October 3
Eq. Tr. Ctfs.
Columbia
Gas
Common
(Bids
to
Transformer
(John R.
be
Inc.) $299,880
8
(Tuesday)
15
11
and Win.
notes
and
July 23
Harper & Son & Co.)
P.
(Bids
to
be
79,000
common
;
shares
(Tuesday)
Halsey,
invited), $60,000,000
&
(Harriman
Ripley
Preferred
Co.' Inc.)
Co.
Inc.)
19
Power
11
(Bids
$5,000,000
.
.Bonds
(Tuesday)
EST)
$28,000,000
Preferred
11
a.m.
EST)
$7,000,000
(Tuesday)
Virginia Electric & Power Co
(Bids
td
be invited)
Bonds
$20,000,000
and
debentures
preferred
due
1972
to
stockholders of
be
offered
record
of
to
July
stock
11, 1957. (Debentures are convertible into common
subsequent to July 31, 1962 and prior to Aug. 1, 1971,
in limited amounts and freely thereafter as described).
Price—At par in units of $125
each.
Proceeds—For
working capital.
Office—300 East Pine St., Hattiesburg,
Co., Jackson, Miss.
Underwriter—Lewis &
Inc.,
Hamden, Conn.
July 3 (letter of notification)
1,500 shares of non-cumu¬
lative voting redeemable preferred stock (par $100) and
15,600 shares of common stock (par $1) to be offered in
units of one share of preferred stock and 10 shares of
common stock.
Price
$110 per unit. Proceeds — For
machinery, equipment, tools and working capital. Office
—2975
Bonds
a.m.
-
—
$50,000,000
Co.—
(Bids
December 3
Preferred
&
(Tuesday)
EDT)
a.m.
Underwriter—None.
(letter of notification) $300,000 of 6% converti¬
it Microtech,
Bonds
and
$25,000,000
filed
subordinate
Miss.
$20,000,000
Ohio Power Co.—
Debentures
Securities Corp.; White, Weld & Co.;
Stuart
11
»
Bonds
Tung-Sol Electric Inc
(Bids
November
Co
Tennessee Gas Transmission Co
(Stone &■ Webster
or
$50,000,000
Consolidated Edison Co. of New York, Inc.
Ohio
Pacific Gas & Electric
to
(Tuesday)
EST)
a.m.
October 22
Notes & Common
Pacific Natural Gas Co
$1,125,000
Bonds
(Monday)
July 22
Weld & Co.
Debentures
Indiana & Michigan Electric Co
(Bids
(White.
ble
$25,000,000
$25,000,000
June 10
common
(Thursday)
invited)
invited)
October
Debentures
Corp
Boland & Co.,
be
Debentures
$100,000,000
Commonwealth Edison Co
(Offering to stocklfcolders—no underwriting) 420,778 shares
Precision
to
October
(Friday)
19
24
Merchants Co.
Co
System, Inc
(Bids
,
Mercast Corp.
sharei
(Tuesday)
(Bids to be invited)
$l,37u,000
Co.)
&
$15,000,000
Light Co
to
Common
Noel
Alstyne,
$10,000,000
Bonds
invited)
October 1
Altamil Corp.
(Van
to
Preferred
Corp. and for working capital.
shares
(Thursday)
July 18
to
Corp., New York, N. Y. (7/19)
420,778 shares of capital stock (par 10
cents) to be offered for subscription by stockholders of
record July 18, 1957 on the basis of two new shares for
each three shares held; rights to expire on Aug. 2. Price
To be supplied by amendment.
Proceeds — For ex¬
pansion program, to repay outstanding notes to Atlas
June
or
—
Utah Power
Tracerlab, Inc.
(Lee
invited)
be
to
Bonds
Utah Power & Light Co
Co
Paper
(Tuesday)
Northern Illinois Gas Co
Co
(Kuhn,
Oxford
September 24
Equip. Trust Ctfs.
Great Northern Ry
State
St., Hamden, Conn.
Underwriter—None..
.
Institute, Inc.
July 3 (letter of notification) 67,500 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For general cbrporate purposes.
Office—55 West 42nd
St., New York 36, N. Y. Underwriter-kNpne.
it Military Publishing
Continued,
on
page
38
38
The Commercial and Financial Chronicle
(198)
Continued from page
matic
37
v
Regulator Co. (7/16)
June 24 filed 333,382 shares of common stock (par $1.50)
to be offered for subscription by common stockholders
of record July 16, 1957 at the rate of one share of new
for
each
twenty
shares
held; rights to
expire on
Aug. 1, 1957.
Price — To be supplied by amendment.
Proceeds—For expansion program.
Underwriter—East¬
man Dillon, Union Securities & Co., New York.
Minneapolis-Honeywell
Mississippi Valley Portland Cement Co.
subject to an offer of rescission.
Proceeds—For completion of plant,
which 708,511 shares are
Price—$3 per share.
York.
Oxford Paper Co.
(7/17)
June 17 filed 175,000 shares of common
Price—To be supplied by amendment.
gether
with
&
offering to
Monticello Associates,
Inc.
Pacific
June
notification) 300,000 shares of common
stock.
Price—At par ($1 per share). Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.
stock
(par 50 cents). Price—$1 per share. Proceeds—For ex¬
ploration and related purposes, including construction of
June
a
filed
24
Underwriter
mill.
shares of class A
400,000
common
Investment Service Co., Denver,
—
Colo.
Mountain
States
Telephone
&
filed
5
of one new share for each five
shares held; rights to expire on July 31.
Price — At
par
($100 per share).
Proceeds — To repay advances
from American Telephone & Telegraph Co., the parent,
which owns 86.74% of the presently outstanding shares.
June 20, 1957 on the basis
Underwriter—None.
for Profit
Trust
SharingRetirement Plans, Inc., Richmond, Va.
March 19 filed 50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.
Price—At market.
—T.
reduce
Mutual
Office
—
5001 West Broad St.,
#
Investors
Corp. of New York
May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550
Fifth Ave., New York 36, N. Y. Underwriter — Stuart
Securities
Corp., New York.
Nassau
bank
investment.
Proceeds—For
stock. Price—At
common
Office—10
St., Princeton, N. J. Investment Advisor
Hoisington, Inc., same address.
National Lithium Corp.,
cent).
Price—$1.25
of
New York
share.
per
properties; for
National
Tea
filed
12
Proceeds—For
acquisi¬
ore
Chicago, III.
Co.,
48,720
shares
of
being offered in exchange for
& Warfield
common
Co. of Sioux City,
stock
common
Iowa,
(par $5)
stock of Tolerton
on
the basis of 7%
shares of National Tea for each Tolerton share.
will expire on
•
Pacific
The offer
July 22, 1957, unless extended.
Co., Chicago, IIS. (7/30)
sinking fund debentures due
Aug. 1, 1977. Price—To be supplied by amendment. Pro¬
filed
28
$12,000,000
ceeds—To repay
for
other
Dec.
bank loans and other indebtedness and
corporate
Brunswick
Underwriter—Hemphill,
purposes.
of)
loans.
Proceeds—To
Electric
Power
be
advanced
Commission
to
New
repay
to
The
bank
Underwriter—Halsey, Stuart & Co. Inc., New York
Offering—Indefinitely postponed.
and Chicago.
Northern States Power Co. (Minn.)
(8/13)
July 3 filed $18,000,000 of first mortgage bonds due Aug.
1, 1.987.
Proceeds—For construction program. Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch,
Pierce, Fenner and Beane, Kidder, Peabody & Co. and
White, Weld & Co. (jointly);, Lehman Brothers and
Riter & Co.
(jointly); The First Boston Corp. and Blvth
& Co., Inc. (jointly);
Equitable Securities Corp.; Kuhn,
Loeb & Co.; Harriman
Ripley & Co. Inc. Bids—Expected
to be received up to 10 a.m.
(CDT) on Aug. 13.
Oil Ventures, Inc.
n
May 13 (letter of notification) 2,500,000 shares of
stock.
mon
ceeds—For
—725
Mid
Price—At
par
($10 cents
development of oil
per
share).
com¬
Pro¬
and gas properties. Office
Judge Bldg., Salt Lake City, Utah. UnderwriterSecurities, Inc. of Utah, Salt Lake City,
America
Utah.
Oxford
April 18
stock to
of
At
County Telephone & Telegraph Co.
(letter of notification) 6,000 shares of common
be offered
to
present stockholders
the
on
preemptive rights, thereafter to the public.
par
The
offered
on
and
by
by
units of
in
of
basis to
about
amendment.
and
other
one
July 31.
liabilities
by
($5 per share).
change at Turner from
Proceeds —For
a
to
manual service
basis
Price—
converting
to
a
rate
•
stock
common
construction
for
Underwriters—White, Weld & Co., New York;
P. Harper & Son & Co., Seattle, Wash.
Pacific
Power
&
(7/12)
Light Co.
June 4 filed
376,600 shares of common stock (par $6.50)
being offered for subscription by common stockholders
July 10, 1957 on the basis of one new share for
held; rights to expire on Aug. 1. Sub¬
scription warrants are scheduled to be mailed on July 12.
Price—$28 per share.
Proceeds—For construction pro¬
gram. Underwriters—-Lehman Brothers, Eastman Dillon,
each
Securities
&
Co., Bear, Stearns & Co. and Dean
Co. (jointly).
Witter &
common
Price—$1 per share. Proceeds—
For oil drilling expenses.
Office—27 William St., New
York, N. Y. Underwriter — Bush Securities Co., New
York, N. Y.
(par
cents).
10
i0§c, CrO
of notification)
(letter
2
Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock
(par 50 cents^. Price—$5 per share. Proceeds—
general funds of the company.
Office—207 West
8th St., Coffeyville, Kan.
& Co., St. Louis, Mo.
Underwriter
—
G. F. Church
Philip Morris, Inc., New York
(par $5)
being offered in exchange for common stock of Milprint,
Inc., Milwaukee, Wis., on a share-for-share basis.
The
offer, which became effective July 1, will expire on
July 19. Underwriter—None.
Lehman Brothers acted
as intermediary
in negotiating the transaction.
•
Investment Co., Atlanta,
Phoenix
Ga. (7/15-19)
June 14 filed 380,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—To be loaned to Peachtree Road Development Corp. and to Mimosa Corp. in
order to permit these companies to pay the balance of
contract prices and closing costs incident to the pur¬
chase of certain parcels of land. Underwriters—Clement
A. Evans & Co., Inc., and The Robinson-Humphrey Co.,
Inc., both of Atlanta, Ga.
Plymouth Fund, Inc., Miami, Fla.
5 filed 500,000 shares of capital
Feb.
Price—At
Proceeds—For
market.
(par $1)
investment. Under¬
—■
filed
20
(par $1).
—
retire
shares of common
bank
loans, to purchase equipment, to
advance additional working capital to
company's wholly-
English subsidiary, to acquire additional land and
a
new
research development laboratory, and
construct
purchases and working capital. Un¬
derwriter—A. G. Edwards & Sons, St. Louis, Mo.
for other real estate
•
Transformer
Precision
Corp.
(7/19) \
(letter of notification) $294,000 of 6% 10-year
convertible debentures due June
1, 1967 and 29,400
June
12
shares
of
units
in
common
of
stock
(par
20
cents)
to
be
•
pre¬
(par $6.25)
capital
at
of
The offer is condiitoned upon
acceptance
of not less than 240,000 shares (80%) of the
Exchange Agent—First Na¬
tional Bank & Trust Co.,
Helena, Mont.
•
St.
Regis Paper Co.
\pril
1
filed
shares of
850,000
being offered in exchange for
lacoma
&
Lumber
Co.
the
on
stock
common
of
oasis
(par $5)
stock of St.
common
56%
Paul
shares
of
Regis stock for each share of Lumber company stock.
The offer will be declared effective if
95% of the latter
stock is deposited for
exchange (and may he declared
effective at option of St. Regis, if not less than
80%
of the stock is
deposited). Statement effective June 21.
St.
of
$500
Office—2218 W. Lake St.,
Chicago, 111.
Under¬
cumulative
50,000
in
Service
convertible
shares
units of
unit.
per
D.
of
one
Electric
&
Gas
preferred
stock
common
share
of
each
stock
(par
class
(par
$1)
of
$2)
be
to
stock.
and
offered
Price—$5
Proceeds—For
2nd
working capital. Office—2621
Miami, Fla. Underwriter—Floyd
Chicago, 111.
Ave.,
Cerf, Jr. Co.,
★ Sears Roebuck Acceptance
Corp. <7 24)
July 9 filed $50,000,000 of debentures due
Price—To
be
July 15, 1982.
amendment.
Proceeds—To
installment receivables from
supplied
purchase
customer
&
Co.
by
Sears,
Underwriters—Goldman, Sachs
Halsey, Stuart & Co. Inc.
New
and
Lehman
&
Brothers,
Co.',
all
of
York.
Seminole Oil
& Gas Corp.,
Tulsa, Okla. (7/15)
(letter of notification) 275,000 shares of com¬
(par five cents). Price—75 cents per share.
Proceeds
For development of oil and
gas properties.
Underwriter—Albert & Co., Inc., New York, N. Y.
June
24
stock
mon
—
Sire Plan, Inc., New York
May 14 filed $1,000,000 of nine-month 8% fund notes.
Price—At par (in denominations of
$100 each). Proceeds
r or
working capital and other corporate purposes.
Underwriter—Sire Plan Portfolios,
Inc., New York.
Southeastern Fund, Columbia, S. C.
'
3 filed $2,000,000 of
6V2% sinking fuifd subordi¬
nated debentures due June
15, 1972, of which $1,500,000
June
principal amount
are
offered
be
to
for subscription
by
stockholders; the remaining $500,000 principal amount,
plus any unsubscribed debentures/ to > be
publicly of¬
fered.
Price—To stockholders, 95% of
principal amount;
public, at 100%.
Proceeds—For working capital
and to
Underwriters—Smith, Clanton & Co., Greensboro, N. C.¬
Fayetteville, N. C.; and Frank S. Smith &
Offering—Expected this week.
Powell & Co.,
Co., Inc., Columbia, S. C.
★ Southern
June
25
added
writer
Industrial
Corp., Jacksonville, Fla.
notification) 150.000 shares of com¬
(par $1). Price—$2 per share. Proceeds—To
(letter
stock
mon
to
Fla.
the
5teadman
East
May
to
be
of
Fund
general
funds of
Investment Fund,
Orange,
filed
10
rf
the company.
Under¬
Pierce, Carrison, Wulbern, Inc., Jacksonville,
—
offered
N.
Inc.,
J.
100,000 shares of
common
in connection with
stock
(par $1)
merger into this Fund
of
Fortune, Inc., Fortune II, Inc., Fortune III,
Inc. and Fortune IV, Inc. Underwriter
William Allen
Steadman & Co., East Orange, N. J.
Offering—Expected
early in July.
—
Stratford
(John G.) Film Corp.
(letter of notification) 199.999 shares of com¬
stock (par 25 cents). Price—$1.50
per share.
Pro¬
ceeds—For production of films, working
capital
etc
June
27
mon
Office—113 West 57th St., New
Joseph Mandell Co., New York.
York.
Underwriter
Strato-Missiles, Inc.
notification) 300,000 shares
June 7 (letter hf
—
of common
stock
(par 10 cents). Price—$1 per-share. Proceeds—To
develop Hatfield propulsion system, and other projects*
for purchase of additional facilities and
for
working
capital.
Business—To produce machinery and equip¬
ment.
writer—John R. Boland & Co., Inc., New York.
Public
Sareze, Inc., Miami, Fla.
(letter of notification) 50,000 shares of 30-cent
June 27
offered
debentures and 50 shares of stock
at $510 per unit, or $100 of debentures and 10 shares
of stock at $102 per unit.
Proceeds — To repay out¬
standing indebtedness and for general corporate pur¬
poses.
1.39
of
by holders
Fla
(7/15-16)
stock, class A
To be supplied by amendment. Pro¬
70,000
Price
ceeds—To
owned
cumulative
outstanding Western stock.
be
stock
Plymouth Bond & Share Corp., Miami,
Joseph A. Rayvis, also of Miami, is President.
writer
C
class
Life Insurance Co., Helena,
Mont.,
shares of St. Paul stock for each share
Roebuck
inc.
y
$250,000 of 10-year 6%
debentures.
Price—At par (in denominations of $1,000
each). Proceeds —For capital expenditures.
Office —
231 Main St., Pawtucket, R. I.
Underwriters—None.
July
of
Western
of
Northwest
Pancal Oil Corp.
stock
1,250 shares
(par $57).
M.
shares
10
Union
Insurance Corp., St. Louis, Mo.
filed
Western stock.
be
Price—To be sup¬
repay
short-term
and
27
R.
stock
common
are
program.
Wm.
Fund Management
St. Paul Fire & Marine Insurance Co.
June 25 filed 417,000 shares of capital stock
to
be offered in exchange for the
stock
common
shares of stock
Proceeds—To
current
Inc., New York
outstanding
$25 note and
a
34,000
for subscription
company
Co., New
—
interim
subordinate
shares
79,000
remaining
T-for-3
a
plied
June
1956, filed $12,000,000 of 25-year sinking fund
debentures due Jan. 1, 1982. Price—To be
supplied by
Brunswick
1963
&
Price—$97 per share.
Proceeds
Realty Co., who is the selling stockholder.
Underwriter
Yates, Keitner & Woods, St. Louis, Mo.
Offering—Expected in the near future.
—To
(7/22-26)
6%%
of
Polymer Corp., Reading, Pa.
(Province
14,
amendment.
$1,125,000
be offered
to
are
share.
Noyes & Co., New York.
New
due
Co.
Gas
Louis
ferred stock
by
(par $1), of which the notes and 45,000 shares of stock
National Tea
June
filed
28
notes
Natural
May 28 filed 385,000 shares of common stock
pected to be amended.
•
determined
be
Nassau
testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York. Statement ex¬
June
St.
Co.
Harland W.
—
Feb. 19 filed 3,120,000 shares of common stock (par one
tion
Underwriter—To
loans.
Aaron
Investment Advisor—Resource
March
bidding. Probable bidders: Halsey, Stuart
Inc.; Blyxn & Co., Inc.; The First Boston Corp.
Bids—Expected to be received up to 8:30 a.m. (PDT) on
July 23.
&
For
Fund, Princeton, N. J.
May 8 filed 250,000 shares of
market.
(7/23)
competitive
Proceeds—For investment. President
Coleman Andrews.
Richmond, Va.
Co.
May 13 (letter of notification) 299,000 shares of
Investment
Mutual
Electric
&
L.
Co., Inc., 60 Broadway, New York, N. Y.
of record
Telegraph Co.
584,176 shares of capital stock (par $100)
being offered for subscription by stockholders of record
June
Gas
-Underwriter—E.
March 29 filed 100,000 shares of common stock
(par $1).
Price—At market.
Proceeds—For investment.
Under¬
writer—None.
D. John Heyman of New York is Presi¬
dent.
$60,000,000 of first and refunding mort¬
bonds, series BB, due June 1, 1989. Proceeds—To
debt
Inc., Telluride, Colo.
Mount Wilson Mines,
outstanding bank
Underwriter—Blyth
prepay
capital improvements.
filed
28
May
Feb. 18 (letter of
to
,
Thursday, July 11, 1957
.
Offering—Date indefinite.
Resource Fund,
stock (par $15).
Proceeds—To¬
Co., Inc., New York.
•
capital.
provide for general creditors and for working
Office—Jackson, Miss.
Underwriter—None,
be made through company's own agents.
funds,
other
notes and for
gage
shares of capital stock (no par), of
Dec. 26 filed 1,600,000
vision releases.
Underwriter—
Office—Buckfield, Me.
exchange.
None.
.
.
Office—70 East
45th
St., New York, N. Y.
Un¬
derwriter—Kesselman & Co., Inc., New York.
Co.
•
Summers
Proceeds—For construction program. Underwriter—Mer¬
Gyroscope Co.
250,080 shares of common stock (par $1)
being offered for subscription by common stockholders
rill
of
May
stock
29
filed
shares of cumulative preferred
Price—To be supplied by amendment.
250,000
(par $100).
Lynch, Pierce, Fenner & Beane, New York. Offering
20,000 shares issued to underwriter.
ex¬
dial auto¬
tions,
as
well
Inc.;
as
and
a
Price—$5
per
share
$125,000 of outstanding 15% deben¬
$173,180 debt to Trans-Union Produc¬
for
working
capital.
each
May 31, 1957
five
Price—$3
Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and
Proceeds—To retire
record
for
—Temporarily delayed.
tures
May 20 filed
Business—Tele¬
per
shares
share.
on
held;
the basis of two
new
rights to expire
on
shares
July 19
Proceeds—For working
capital and
general corporate purposes.
Office—Santa Monica,
Underwriter—Daniel Reeves & Co.,
Beverly
Tax
Exempt Bond Fund,
June 20 filed 40,000 shares of
per
share.
Proceeds
Cal
Hills,' Cal!
Inc., Washington, D. C.
common
stock.
For investment.
Price
$25
UnderwriterEquitable Securities Corp., Nashville, Tenn.
—
Number 5654
106
Volume
.
.
.
The Commercial and Financial Chronicle
notification) 180,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds
To purchase and install two Ampex videotape
recorders, for equipment and working capital. Office—
1481 Broadway, New York City.
Underwriter—Joseph
Mande.il Co., New York.
(letter of
14
—
if Tefetray-Efastern Corp.,
Silver Spring, IVId.
5,000 shares of common
(letter of notification)
July 9
(no par). Price—$7 per share. Proceeds—To pur¬
chase a 53% interest in Teletray Service, Inc., and for
stock
Office
capital.
working
Georgia Ave., Silver
Sales to be made by
8416
—
Underwriter—None.
Spring, Md.
and directors.
officers
if Tennessee Gas Transmission Co. (7 23)
July 5 filed $25,000,000 debentures due Nov. 1, 1977.
Price—To be supplied
by amendment.
Proceeds—To
short-term loans. Underwriters—Stone & Webster
Securities Corp., White, Weld & Co. and Halsey, Stuart
& Co. Inc., all of New York.
repay
Texam Oil
Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
be offered for subscription by common stockholders
to
of
15, 1957 on a basis of two new shares
March
record
rights to expire on July 20.
for each share held;
supplied
be
—To
Price
Proceeds—To repay
exploration of oil and
by amendment.
indebtedness, for acquisition and
leases, for drilling and completion of wells,
corporate purposes. Underwriter—None.
gas
Oecfric
Texas
June
filed
14
Service Co.
of first
$16,000,000
Price—At
par
Stuart Bldg.,
Seattle, Wash.
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
Underwriter—None.
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody &
Co.;
and Merrill Lynch, Pierce, Fenner & Beane
Western
Hemisphere Petroleum Corp. (7/15-19)
400,000 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—For oil exploration and development in Canada, Cuba,
Haiti, Honduras and other countries in the Western
Hemisphere, and barite exploration in Columbia. Office
—Tulsa, Okla. Underwriters—Sanders & Co. and Rauscher, Pierce & Co., Inc., both of Dallas, Tex.
June
(jointly);
filed
20
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
Central
Inc.
plans to issue and
late this year $6,000,000 of first mortgage bonds.
Proceeds
Together with $4,500,000 of 4%% 12-year
convertible debentures placed privately, to be used to
repay bank loans and for construction program.
Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the
private
writer—None.
placement of
gage bonds.
Western Printing & Lithographing Co. *
May 15 filed $3,037,640 of 5% serial notes due Dec. 1,
1958 to
1967, inclusive being offered, together with
June 5, stockholders approved a proposal to increase the
authorized common stock from 1,000,000 shares to
k Central
and for
shares
cash
receive
will
Office—Racine, Wis.
(7/15)
mortgage bonds due
effective June
at
the
rate
Underwriter
—
(estimated at $7,000,000 for 1957). Under¬
writer—Paine, Webber, Jackson & Curtis, Boston and
New York.
Chesapeake
$26 per share
None. Statement
June
bonds due 1972 and 350,000 shares of common stock. Each
& Gas
$10 of bonds will
Co., Inc., New York
cents),
selling stockholder, Ralph J. Ursillo, General Manager
of the company.
Price—$1.50 per share. Proceeds—To
drill and complete oil wells on the company's Pennsyl¬
Corp.; East¬
Kuhn, Loeb & Co.,
Blyth & Co., Inc., and Lehman Brothers (jointly); Har¬
ridan R pp"*
Co. r>r 3n'ir® Stme & Webster Securi¬
ties Corp. (jointlv). Bids —To be received up to noon
.(EDT) 011 July 15 at Room 2033, Two Rector Street,
101'K,
Texas
N.
(jointly); The First Boston
Manufacturing Corp.,
25 .filed
June
30,886
Inc.,
shares of
class A
Ky.
(7/15)
common stock
borrowed
15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
ly $2,250,000 of
private sale of 425,000 shares of common stock at $4 per
share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid & Co., Inc.,
6,000,000 shares of common
Price—Five cents per share. Pro¬
exploration of oil properties. Office — 704
Cleveland, Ohio.
sell
Co.
$5,000,000 of convertible debentures.
struction program.
(letter of notification) 100,000 shares of class A
stock
(par 10 cents).
Price—$1.50 per share
Proceeds—For working capital; machine tools; equip¬
27
development.
Office — 4932 St
14. Md.
Underwriter—Whitney &
Inc., Washington, DC./
ment
and
Ave., Bethesda
Co
Proceeds—For
proprietary
ginson Corp.; Blyth & Co., Inc.
Byers
Tung-Scii Electric Inc. (7/23-24)
July 3 iiled 100,000 shares of cumulative preferred stock
(par $50), convertible prior to Aug. 1, 1967. Price—To
be supplied by amendment. Proceeds—To reduce shortterm bank loans and to increase working capital. Un¬
®
(A. M.)
authorize
a
preference
$100) and to increase the authorized out¬
standing indebtedness to $15,000,6100, in connection with
its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,
stock
if Turbo Dynamics Corp.
(letter of notification) 300,000 shares of common
previous preferred stock financ¬
Inc., New York, handled
ing, while Kidder, Peabody & Co. underwrote
Tire & Rubber Co. financing.
General
Gas Co.
it Carolina Natural
sell
bonds, $800,000 of 6%
July 2 it was reported company plans to issue and
writer—None.
$1,600,000 of first mortgage 6%
subordinated sinking fund debentures due 1977 and
of America, Portland, Ore.
shares of common stock
112,-
in units of $100 of bonds,
April 30 filed
000
cents).
$50 of notes and seven common shares. Price—$164 per
unit. Proceeds—For construction program. Underwriters
1,250,000 shares of common stock (par 10
Price—To be supplied by amendment (expected
share). Proceeds—For exploration purposes
Graham Al¬
Griswold of Portland, Ore., is President.
to be $1 per
if West
Bene-
A.uminum Co.
July 2 (letter of notification) not to exceed 3,450 shares
of class B common stock (par $5) to be offered to mem¬
bers
sales force not residents of the
Price—$14.42 per share.
Proceeds—
of company's field
State of Wisconsin.
To
help defray the cost of a new administration building.
Ave., West Bend, Wis.
Underwriter—
Office—92 Island
None.
.
i
Martin
&
Expected
in August,
1957, with registration about the
middle of July.
.
July 2 (letter.of notification) $300,000 of 5% convertible
subordinated debentures due 1967 (convertible-into com¬
Room
$8,000,000 collateral trust notes to mature
annual
installments.
of
stock
1114, 400
in 10 semi¬
Proceeds —To
purchase common
Litchfield Ry. for the purpose of
effecting a
between the two companies.
will
Rock
be
Feb.
bidders:
Island
received
1958 to Aug.
1,
Halsey, Stuart
&
1, 1972, inclusive. Probable
Co. Inc.; Salomon Bros. &
Hutzler.
Cleveland
Electric
Illuminating Co.
reported company plans to issue and sell
of first mortgage bonds in the Summer ot
1957.
Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined
by com¬
petitive bidding.
Probable bidders:
Halsey, Stuart &
Nov.
12 it
was
£25,000,000
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc.. and Baxter, Wil¬
liams
&
Weld
&
Co.
(jointly);
Glore,
Co.
Coastal
.
Transmission
Forgan
&
Co.;
White.
-
.
Corp.
July 1 it was reported the company plans to offer pub¬
licly about 191,000 units of securities for about $20,000,(each unit expected to consist of a $25 debenture or
$35 interim note and five shares of $1 par common
stock).
Proceeds—Together with other funds, for con¬
struction program. Underwriters—Lehman Brothers
and
Allen & Co., both of New York.
System, Inc. (10/3)
6, company announced that it plans the issuance
of $25,000,000 debentures later in 1957.
Pro¬
ceeds—To help finance 1957 construction
program, which
is expected to cost
approximately $84,000,000. Under¬
June
and
sale
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley
&
Co.; Merrill Lynch, Pierce, Fenner & Beane and
White, Weld & Co. (jointly). Bids—Expected to be re¬
ceived
on
Oct.
3.
Columbus & Southern Ohio Electric Co.
reported that company plans to issue and
$8,000,000 of cumulative preferred stock.
Underwriter—Dillon, Read & Co. Inc., New York.
was
Commerce Oil
June
10
it
Refining Co.
reported
was
this company
plans
to
raise
about
$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in units). Un¬
derwriter—Lehman Brothers, New York. Offering—Ex¬
pected in August.
if Commonwealth Edison Co.
(10/8)
stated that it plans to offer $25,000,000
$50,000,000 of new securities (kind not yet deter¬
mined). Proceeds — For construction program. Under¬
writer—(1) For any preferred stock, may be The First
Boston Corp. and Glore, Forgan & Co. (jointly).
(2)
For any bonds, to be determined by competitive bididng.
Probably bidders: Halsey, Stuart & Co. Inc.; The First
June 25 company
to
Boston
Corp.; Glore, Forgan & Co.
be received
on
Bids
—
Expected to
Oct. 8.
t
Central Hudson
Gas\ & Electric Corp.
April 22 it was announced company plans to issue and
this year, probably in the fall, approximately $7,-
sell
500,000 of sinking fund debentures. Proceeds—To finance
construction
program.
Underwriter—Probably
Kidder,
Peabody & Co., New York.
"
it Westates Corp,
Podesta & Co., Chicago, 111.; and Odess,
Herzberg, Inc., Birmingham, Ala. Offering—
—Cruttenden,
Underwriter—To be named by amendment.
bert
of
(par
Price—$1 per share. ; Proceeds—
To
purchase machinery and equipment; payment on
company plant facility: and for working capital.
Office
—Virginia & Truckee Bldg., Carson City, Nev.
Under¬
(par one cent).
(7/15)
at
West Madison St., Chicago 6, 111., will up to noon
(CDT)
on July 15 receive bids for the
purchase from it at par
sell in the Fall
June 27
Uranium Corp.
Chicago & North Western Ry.
July 1 it was announced company
Feb. 21 it
Co.
Ylay 7 stockholders approved a proposal to
aew
class of 100,000 shares of cumulative
derwriter—Harriman Ripley & Co. Inc., New York.
stock
con¬
Underwriter—May be determined by
:ompetitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., American Securities Corp.
and Wood, Struthers & Co. (jointly); White, Weld & Co.
and Shields & Co. (jointly); The First Boston Corp. and
Drexel & Co. (jointly); Eastman Dillon, Union Securi¬
ties & Co. and Smith, Barney & Co. (jointly); Lee Hig¬
common
one share
Van Alstyne, Noel &
Columbia Gas
Electric Co.
later
Engineering Corp.
Elmo
City
April 9, Bayard L. England, President, announced that
this year the company will probably issue about
and
York.
Feb.
$1.20 cumulative convertible pre¬
(par $20). Underwriters—Emch &
and The Marshall Co., both of Milwaukee, Wis.
Atlantic
supplied by amendment. Proceeds—To re¬
other current indebtedness of company
and its subsidiaries and for general corporate purposes
Underwriter — Lee Higginson Corp., Boston and New
Price—To be
Inpac
announced company plans to issue and
ferred stock series A
Tracertab, Inc., Wait.tam, Mass. (7/17)
19 filed 200,000 shares of common stock (par $1)
trade
was
shares of
15,000
—
000
Aluminum Specialty Co.
Vlarch 18 it
Underwriter-
June
duce
Freight, Incorporated, Akron, O.
plans to-offer public¬
June 21 it was announced company
Wayne Jewell Co., Denver, Colo.
-
new
expansion program.
(par one cent).
Denver, Colo.
Air-
with $4,000,000 to be
from institutional investors, for a building and
All States
warrant to purchase
Underwriter
Co., New York.
from
Proceeds—Together
debentures.
Co.
First National Bank Bldg.,
Laboratory, Inc.
was
ment Corp., owner of 31,500 shares or 15.8%
ol
borne's stock, propose to purchase $320,000 of the
May 6 (letter of notification)
ceeds—For
Instruments
carry a
stock.
common
& Pacific RR.
(7/18)
by the company at Chicago, 111.,
up to noon (CDT) on July 18 for the purchase from it of
$3,000,000 equipment trust certificates due semi-annually
announced company plans to issue and seli
$2,000,000 of 15-year 5V4% unsecured subordinated con¬
vertible
debentures.
American
Research &
Develop¬
.Ylay 16 it
stockholders. Underwriters—Kidder, Peabody &r
New York; and MeCormick & Co., Chicago, 111.
stock
of
Bids
Prospective Offerings
.selling
Titanic Oil
shares are to be offered for
100,000 shares for account of a
Pennsylvania
Airborne
and 1,000 shares of class B common stock (par
-$10>, of which 25,886 class A shares and all of the class
B shares are to be offered to public and 5,000 class A
shares to emplovees of company and its subsidiaries.
Price—To be supplied by amendment.
Proceeds — To
Co.,
10
Chicago,
(par $1)
.
(par
merger
Houston, Tex.
Louisville,
and
stock
ment.
of common stock (par $1),
•of which 2,700,000 shares are to be offered to public at
$2 per share. The remaining 300,000 shares are under
option to original stockholders at $1 per share. Proceeds
—For expansion and working capital.
Underwriter—T.
;J. Campbell Investment Co., Inc., Houston, Texas.
Industries,
600,000
common
properties and for two "deep tests''
property, as well as for working
Underwriter—Name to be supplied by amend¬
its
capital.
May 28 filed 3,080,000 shares
Thomas
which
of
shares of
vania and Kentucky
on
it.
Glass
700,000
account of company
Dillon, Urnon Securities & Co.;
l\cv\
filed
Industries, Inc.
it was reported company plans early
registra¬
$3,500,000 of 5 %% collateral trust sinking fund
3
tion of
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Kidder, Peabody & Co. and Merrill Lynch, Pierce,
Fenner & Beane (jointly); Hemphill, Noyes & Co. and
28
It is reported that a convertible debenture
be offered publicly. Proceeds—For construc¬
tion program
10.
Woodland Oil
Co.
1,250,-
issue may
of
—
issue of $5,000,000 series G first mort¬
an
Telephone
shares.
000
cash, in exchange for 151,882 shares of capital stock oi
Kable Printing Co. (111.) on the basis of $20 of notes and
$6 in cash for each share held. This offer which is to
expire July 12, is conditioned upon the acceptance by
holders of at least 130,000 shares of Kable stock (about
85%). Holders of Kable stock who own less than 51
May
Co.
company
—
if Western Plains Oil & Gas Co.
July 1 (letter of notification) 300,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For ex¬
penses incidental to
the development of gas and oil.
Office—218 C. A. Johnson Bldg., Denver 2, Colo. Under¬
1987. Proceeds—To repay advances from Texas
Co., the parent, and for construction program.
Underwriter—For any bonds to be determined by com¬
&
announced
was
sell
Utilities
man
Louisiana Electric Co.,
April 8 it
July 1,
Drexel
39
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
(in denomi¬
nations of $100 each). Proceeds—To retire current debt
and for working capital.
Office — 5507 White-Henry-
other
/
stock at $25 per share).
mon
Te'estudics, Inc.
June
(199)
Central Illinois
Public Service Co.
April 9 it was reported company plans to issue and sell
£10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
Connecticut Light &
Feb.
than
Power Co.
18, it was reported company plans to sell not less
$20,000,000 of first mortgage bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conn.; and Estabrook & Co., Boston
Mas*
Continued
on
page
40
The Commercial and Financial Chronicle
40
Continued from -page
•fc Consolidated
New York.
Edison Co. of New
York, Inc.
Financial Vice-President, on July 8
has tentatively decided to
4«sue and sell $50,000,000 of first and refunding mortgage
toonds (probably with a 30-year maturity).
This may
toe increased to $60,000,000, depending upon market con-,
dition«
Proceeds—From this issue and bank loans, to
announced that the company
construction
part of the cost of the company's 1957
^program which is expected to total about
fjay
$146,000,000.
competitive bidding.
Inc., Morgan
Co.: The First Boston Corp. Bids—Tentatively
to be received up to 11 a.m. (EDT) on Oct. 22.
Underwriter—To be determined by
Stanley &
ccheduled
(9 17)
plans to issue and sell
Consolidated Natural Gas Co.
announced company
9 it was
$25*000.000
termined
25-year debentures. Underwriter—To be de¬
bv competitive bidding.
Probable bidders:'
Halsev, Stuart & Co. Inc.: White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley
& Co. and the First Boston Corp. (jointly.
Bids—Ex¬
(EDT) on Sept. 17.
pected to be received up to 11:30 a.m.
Power Co.
Consumers
Julv 9 it was announced company
plans to issue and sell
000 of first mortgage bonds due 1987. Proceeds
—To repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsev, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co. (jointly); Morgan Stanley &
$35*000
and Harriman Ripley & Co.
Co.; The First Boston Corp.
Inc.
announced that the company plans, in addi¬
financing, to offer to its common stock¬
holders the right to subscribe tor $35,156,760 convertible
debentures maturing not earlier than Sept. 1, 1972, on
the basis of $100 of debentures for each 25 shares of
etock held.
Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.: White, Weld
& Co. and Shields & Co (jointly): Morgan Stanley &
Co.: The First Boston Corp. and Harriman Ripley & Co.
tion to the bond
Inc.
•
Ladenburg, Thalman
(jointly);
Edison
Detroit
150,000 shares of capital stock (par $16.662s), fol¬
lowing approval on Aug. 5 of 3-for-l split up of present
$50 par stock. Proceeds—For general corporate purposes.
expected by the company to be
are
Co.
&
—
The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Coffin & Burr, Inc.,
and Spencer Trask & Co. (jointly). Offering—Expected
in August.
'' y
probable bidders
was
additional first mortgage bonds, the amount of which
it
4
March
ceeds—To
April
it
8
(9 10)
its
to
Utilities Associates
it was announced company proposes to issue
sell $3,750,000 of 25-year collateral trust bonds
advances
For
Blackstone
to
Employers Group Associates
announced
was
capital
sale
and
stock
holders
to
the
on
with
of
be
up
SEC
88,761 additional shares of
to
offered
basis
of
plans to file a regis¬
covering the proposed
company
the
for
one
subscription
new
share
for
by
Fall
shares held.
Price—To be supplied by amendment. Pro¬
working capital and general corporate pur¬
poses.
Underwriter—Morgan Stanley & Co., New York.
Offering—Expected in late August or early September.
National
First
June
25
this
bank
City Bank of New York
offered
its
stockholders
subscribe for 2.000.000 additional shares
(par $20»
shares
July
held
22.
capital
the basis of
on
as
of
June
Price—$60
and
surplus.
per
one
24,
new
1957:
share.
of
the
share for each five
rights
to
expire on
Proceeds—To increase
Underwriter
—
The
First
Boston
May 3 it
the
was
announced
California
and sell 500,000
(par $20).
P. U.
Commission for
authority to issue
shares of 5% cumulative preferred stock
Proeeeds^-For construction
program.
Under¬
writers—Paine, Webber, Jackson & Curtis, Boston. Mass.;
and Mitchum, Jones & Templeton, Los
Angeles, Calif.
General Tire & Rubber Co.
May 10 it
reported that this company is considering
debentures, prob¬
ably around $15,000,000, which may first be offered foT
subscription by common stockholders.
Proceeds
For
an
was
issue of convertible subordinated
Co.
Salomon
and
Idaho
Bros.
&
Hutzler
Co.
Power
reported
was
company
addition
in
between
to
plans to issue and sell
$10,000,000
to
$15,000,000
first mortgage bonds after Nov. 1.
Underwriter—To be
determined by competitive bidding,
probable bidders:
(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
& Hutzler and Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp.
(jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co. (jointly).
Indiana
& Michigan
Electric Co.
(10/15)
May 20 it. was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Proceeds
—For
reduction
of
bank
loans
and
for
construction
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Harriman Ripley & Co. Inc.; The First Boston
program.
Corp.; Eastman Dillon, Union Securities & Co. Bids—
Tentatively expected to be received up to 11 a.m. (EST)
Oct.
cn
Nov. 2T, 1956, H. T.
ent
time
some
Light
in
an
1957
pres¬
issue of $6,000,000 of preferred
if
market
conditions
make
it
feasible, and an issue of $8,000,000 in bonds in 1958. Tem¬
porary bank loans are available ar.d probably will be
rities will need
to
be sold
to
in
approximately $14,000,000.
loans
and
for
1959
and
secu¬
1960, amounting
Proceeds—To
repay
bank
construction.
Underwriter—May be
Lehman Brothers, Goldman, Sachs & Co. and The First
Boston Corp.. who underwrote last equity financing.
Iowa
new
Southern Utilities Co.
was announced company plans to issue and
$5,000,000 of first mortgage bonds later this year.
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
—
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.: Lehmar
Brothers, and Bear, Stearns & Co. (jointly) Equitable
Securities Corp. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.; Dean Witter & Co.
Jefferson
Lake
will
plans in the
debentures.
near
Walte. Jr., announced
future to sell
shares
held
Price—$35
26.
1957,
offering
1958
was
and
1959.
Underwriter—
to
without
St.
Paul & Sauit Ste. Marie RR.
received
be
by this company at the First
Bldg., Minneapolis 2, Minn., up to
noon
(CDT) on July 11 for the purchase from it of
$1,740,000 equipment trust certificates, series D, dated
Aug. 1, 1957 and to mature in 30 equal semi-annual in¬
stallments of $58,000 each.
Probable bidders: Halsey,
Stuart & Co., Inc.; Salomon Bros. & Hutzler.
Montana
Line
Power Co.
"
May 20 it
was
the fall about
reported company may issue and sell in
$20,000,000 of debt securities. Proceeds—■
construction program and to reduce bank loans.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Eastman
For
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬
der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &
Beane and Stone & Webster Securities Corp. (jointly).
New
England Electric System
May 23 it was announced SEC has approved the merger
of the five following subsidiaries: Essex County Electric
Co.: Lowell Electric Light Corp.; Lawrence Electric Co.;
Haverhill Electric Co. and Amesbury Electric L'ght Co.,
into
one company.
This would be followed by a $20,000,000 first mortgage bond issue by the resultant com¬
to be known as Marrimack-Essex Electric Co,
Underwriter—May be determined by competitive bid¬
ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Company; Salomon Bros. & Hutzler; Eastman
pany,
Dillon, Union Securities & Co., and Wood, Struthers &
(jointly); Lehman Brothers; The First Boston Corp.;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane; Kidder, Peabody & Co., and White, Weld
Co.
&
Co.
(jointly).
Offering—Expected
in
first
half
of
1957.
Jersey Bell Telephone Co.
(9/11)
$30,000,000 of debentures. Proceeds—Together with pro¬
ceeds from sale of 900,000 shares of common stock (par
$100) to parent, American Telephone & Telegraph Co.,
will be used to pay for expansion program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Stanley & Co.; Shields & Co.; White, Weld &
Morgan
Co.; The First Boston Corp.
to be received on Sept. 11.
New
Jersey
Bids—Tentatively expected
Power & Light Co.
Sept. 12. 1956, it was announced company plans to issue,
$5,C00,000 of first mortgage bonds. Underwriter—
To
be
determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
man
Brothers and Salomon Bros. & Hutzler (jointly);
Dillon, Union Securities & Co. and White, Weld
(jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch. Pierce. Fenner & Beane.
Eastman
&
Co.
Niagara
Mohawk Power Corp.
April 22 it was reported company tentatively plans to
issue and sell this fall about $40,000,000 of bonds.
Un¬
derwriter—To
Sulphur Co.
Dec. 27, 1956, Eugene H.
seven
July
and sell
it
Proceeds
each
on
May 1 it was announced company plans to issue and sell
Co.
Prichard, Pres., announced that
plans contemplate
stock
&
for
expire
(7/11)
New
Power
share
to
Utilities, Inc.
period
stock
Minneapolis,
15.
Indianapolis
new
rights
Proceeds—About $19,000,000, for investment in common
of the System operating companies during the
common
sell
application has been made to
one
9;
to offer
soon
(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
April 2
Telephone Co. of California
July
stocks
Me.
Halsey, Stuart & Co. Inc.; Equitable
Lehman Brothers, Eastman Dillon,
&
Detroit
stockholders,
underwriting, with oversubscription privileges.
utilized, during at least part of 1957.' Additional
right to
capitaf stock
Corp., New York.
General
Securities
of
May 8 it was announced company may consider an offer¬
ing of new common stock within the next year or so.
offer late this
approximately $25,000,000 first mortgage bonds, but
Union
Bank
an
Corp.; and Watling, Lerchen & Co.
Bids
Corp.;
National
share. Proceeds—To increase capital and surplus.
Underwriters—Blyth & Co., Inc.; First of Michigan
Underwriter—Probably H. M. Payson & Co., Port¬
bidders:
Underwriter—Lee Higginson Corp.,
per
exact amount, timing, etc. has not yet been determined
Underwriter—To be determined by competitive bidding.
four
ceeds—For
of
basis
of
as
Houston Lighting & Power Co.
13 it was reported company may
Feb.
stock¬
each
of
National-Soo
Valley Gas &
subsidiary. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co,, Inc.: White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
1972.
offering to stockholders
156,600 additional shares of capital stock (par $10) on
Previous
additional
some
some
reported early registration statement is
issue of $3,000,000 of convertible de¬
Manufacturers
the
land, Me.
a
statement
stockholders
company
York.
three-year
Co., Waterville,
F.)
an
Middle South
announced company plans
common
stock.
Fall
15
issuance
•
Birmingham, Ala.
around 200,000 to 225,000 shares of common stock in the
& Fuel Associates
April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years.
Underwriter—For any bonds to be de¬
termined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).
Co.,
(C.
was
RR.
July 9 stockholders approved
Offering—Expected in June.
it
was
of
due
New
111.; and Odess, Martin & Herzberg, Inc., Birming¬
Hathaway
it
bentures
April 8 it was reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per
6hare.
Underwriters—Cruttenden, Podesta & Co., Chi¬
June 24
19
expected
competitive bidding. Probable bid¬
Securities Corp.; Lehman Bro¬
thers and Equitable Securities Corp. (jointly); Lee Hig¬
ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
May 16 it
Sept. 10.
Eastern Gas
tration
June
by
Hanna-Steel Co.,
Nashville
Mangel Stores Corp.
Webster
&
Stone
&
expected to be received by the
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
sey,
construction
determined
be
are
time in the Fall for the purchase from it of $14,400,000
of equipment trust certificates. Probable bidders: Hal¬
reported company tentatively plans to
preferred stock this year. Proceeds
program.
Underwriter—To
was
finance
ders:
Morgan Stanley & Co.; Stone & Webster
Securities. Corp. Bids—Tentatively scheduled to be re¬
July 1 it
Louisville
Bids
Gulf States Utilities Co.
Corp.;
—
and
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner and Beane and White,
Weld & Co.
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp.
Probable
Electric
plans to issue
company
gram.
Securities
Proceeds
(jointly); The First Boston Corp.; Eastman Dillon, Union
White, Weld & Co. (jointly). Bids
—Tentatively scheduled to be received on Sept. 4.
Securities & Co. and
bonds in November. Pro¬
bank loans and for construction pro¬
repay
$50,000,000 of first refunding mortgage bonds. Proceeds
—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Bos¬
and
(jointly); Kidder, Peabody &
Goldman, Sachs & Co. (jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc.
sell $16,000,000 first mortgage
be
may
Duke Power Co.
Eastern
reported
was
Underwriter—•
Co. and
Gulf States Utilities Co.
April 22 it was reported company plans to issue and sell
April
bank loans and for construction program.
announced company plans to issue some
has
not yet been determined.
Proceeds — For construction
program.
Underwriters—Carl M. Loeb, Rhoades & Co.
and Merrill Lynch, Pierce, Fenner & Beane.
May 3 it
(9/4)
To be determined by competitive bidding. Probable bid- '
ders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co. and
American Securities Corp.
Interstate Gas Co.
Gulf
ham, Ala.
Co.
refunding mortgage bonds, series P. due 1987. Proceeds
—To repay bank loans and for construction program.
Underwriter
If determined by competitive bidding,
on
Louisville Gas & Electric Co.
May 14 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
Inc.; Salomon Bros. & Hutzler.
cago,
announced Michigan P. U. Commission
has authorized issue and sale of $70,000,000 general and
ceived
received on
July 17 for the purchase from it of $4,965,000 equipment
trust certificates. Probable bidders: Halsey, Stuart & Co.
June 27 company
ton
(7/17)
Ry.
Great Northern
Bids
—To
Co.
Power
Consumers
was
was
issue and sell some
(jointly).
Julv 9 it
it
21
sell
Stuart & Co.
Halsey.,
bidders;
Probable
Manufacturing Co., Chicago, III.
announced company plans to issue and
Goodman
June
Charles B. Delafield,
<»
Thursday, July 11, 1957
.
Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due
Jan. 1, 1958 and for construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
Underwriter—Kidder, Peabody & Co.,
working capital.
39
22)
(|o
•
.
.
(200)
an
company
issue of convertible
Proceeds—For expansion program.
be
Pfobable bidders:
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; The First
Stanley & Co.; Kuhn, Loeb & Co.
Boston Corp.; Morgan
and Eastman Dillon, Union Securities & Co.
(jointly).
Volume
186
Number
5654
.
Norfolk & Western Ry.
Bids
(EDT)
from
it
.
The Commercial and Financial Chronicle
(7/31)
July 31
on
Northern
Illinois
1
raise
between
No
Gas
this company
Co.
that it
$8,000,000 and $10,000,000
decision has
made
been
as
to
the
posed financing, but no consideration is
sale of
stock
common
or
of
the
com¬
stock.
bidding.
The
Probable
First
Co., Inc.
bidders: Halsey, Stuart & Co. Inc.;
Corp.; Glore, Forgan & Co.; Blyth &
Bids—Expected to be received on Sept. 24.
Boston
Ohio Power Co.
May 15 it
was
issue
Halsey, Stu¬
set iption by common stockholders.
Proceeds—For work¬
ing capital and general corporate purposes. Underwriters
—Smith, Barney & Co., New York, and McDonald & Co.,
Cleveland, O.
■
/
May 21 it
was announced company plans a public offer¬
securities to provide about $6,700,000 of new
working capital.
tive
(11/19)
to
1972, inclusive.
Co.
Probable bidders:
on
Inc.; Salomon Bros. & Hutzler.
Purex
sell
and
reported that this company now plans to
Transocean Corp. of California
ing
Corp., Ltd.
Utah
announced that proceeds of at least $1,-
'
San Francisco and New York.
.
;
.
scheduled to be received
ton
San
Diego Gas & Electric Co.
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth
& Co., Inc., San Francisco, Calif.
Utah
★ Sanders Associates, Inc., Nashua, N. H.
was reported company plans to issue and sell
additional class A common stock (par $1), suffi¬
cient to raise between $750,000 and $1,000,000. Under¬
writer—Kidder, Peabody & Co., New York. Offering—
Expected late this month.
Telephone & Telegraph Co.
announced company plans to offer to its
stockholders the right to subscribe for 1,822,523 addi¬
shares of
tional
stock
common
basis of
the
on
share for each six shares of common
ferred stock held.
one
by this
equipment trust certificates, series R, maturing annually
Aug'. 1, 1958 to 1972, inclusive (these are the first
from
instalment of
bidders:
Pacific
Telephone-&-Telegraph Co. (8/20)
May 24 it was announced company plans to issue and
sell $90,000,000 of new 23-year debentures due
1980.
Proceeds—To repay advances from parent and for im¬
provements and additions to property. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
Bids—Expected to be received on Aug. 20. Registration
—Expected in the latter part of July.
an
authorized issue of $16,350,000. Probable
Halsey,
Stuart
Co.
&
Inc.;
Hutzler:
Salomon
■
Bros.
&
y.;.
.
Siegler Corp.
June
25
it
\
announced
plans to issue and
sell in September or October of this year a maximum of
200,000 additional shares of common stock. Underwriter
was
—William R. Staats &
the
,
(July 11)
for the purchase from it of $5,460,000
company
company
Co., Los Angeles, Calif.
reported company plans to issue and sell
$10,000,000 of first mortgage bonds. Underwriter—To be
March
determined
bonds
14 it
Pennsylvania Electric Co.
Sept. 12, 1956 it was announced company plans to issue
was
Permian
May
20
it
Northern
of
Basin
•
Pacific Co.
Southern
bidders:
to
noon
(EDT)
Loeb
Pipe Line Co.
Natural
May 29 it
Southern Union Gas Co.
& Co.
June 28 it
bonds later this year.
of additional
struction
Proceeds—For
con¬
bidding.
Inc.; White, Weld & Co.; The First Boston Corp.;
Morgan Stanley & Co. and Drexel & Co. (jointly).
Our
in
continued
atmosphere
rather
pleasant
they still
gers
the
in
this
last
picture
would
attract
ticularly
buyers
the
the
larger
will
the
marketplace
week.
But
new
be
of
the
the
issues ap¬
a
pretty
terms
investor,
large
was
start
business
of
shelf
stocks
as
earlier
that
par¬
recognized also
season
borrowings
of
soon
approaching and there is
disposition around to wait and
CIT
Financial
offering
on
Corp.'s
which
books
is
a
a substantial way,
Consumers Power Co., and
Consolidated Edison
Inc., between them
Co. of N. Y.,
having raised
potential by $120 millions.
Can't Afford
to
Step
tably the pension funds, have been
a more
kindly eye on new
corporate issues recently, there is
—
t
„,
out"
case.
of
on
—
nothing to suggest that investment
million
of
the
opposite
Take the Wis¬
this
100.511 for a 4 V2 %
the 35-year issue.
The
proceeded (to reofl'er
ail
indicated yield
for
The bonds
4.43%.
new
were
issue
at the time
Buyers of fixed term corporate
are assured of diversifi¬
cial
Co.
new
filed
debt
with
Service
securities
the
when
Michigan
Commission
for
it
Public
permis¬
sion to raise that amount of funds.
It proposes to
to 5* %.
petitive
sell $35 million of
$35.1 million of deben¬
the
else,
new
in
Consolidated Edison Co. of N. Yi,
unique
next
offerings.
Finan¬
offer
for
a
J. P. Morman Opens
$100
L. J. Nied
Opens
IRVINGTON, N.Y.—Leo J. Nied
$16 million of bonds.
Tuesday will bring $15 million
is
resuming his investment
busi¬
Light ness from offices at 435 East Sunbonds up for bids, and 011 Wednes¬
nyside Lane.
day bankers will be offering an
industrial obligation, Inland Steel
Two With Laurence
Co.'s $50 million of bonds.
of
Jersey Central Power &
BEACH,,
MIAMI
Jack Pearlove Opens
debentures
by offering to shareholders.
29
se¬
HOUSTON, Tex. — James P.
Morman, Jr., is conducting a se¬
curities business from offices at
742 Blalock Road under the firm
name of J. P. Morman & Co.
million will be on
tap. Also 011 Monday Texas Elec¬
tric Service Co. will open bids for
The bonds go via com-
bidding,
Corp.'s
possible
disclosed
plans to market some $70 million
of
of
As noted before, C. I. T.
,
Big Ones Shaping Up
Consumers Power
if
nothing
cation,
down.
Prospects
securities
week's calendar
issue
Forms Michael & Co.
curities business.
of sale.
Week's
not in any
Two
Co., Milwaukee, Wis.
BROOKLYN, N. Y. — Michael
Satnick has formed Michael and
moving, but buyers evidently were
the
bonds
mortgage
at
particular rush to take
",l"
probably will be of 30
maturity and the size of the
with
offices
at
offering will hinge, it was indi¬ Company
Crooke Avenue to engage in a
cated, on the nature of the market
of
reported
;
by the bidding route.
years
Next
101.25
1
July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
next October
tures and to limit the interest cost
While the investor element, no-
turning
price
bonds and
Out
"step
Bankers paid the company
coupon
extended pe¬
building in
the
to be the
week.
and
forward calendar
to
consin Telephone Co. offering
riod.
However, the
afford
Co.
common
Underwriter—The Milwaukee
issue.
contrary,
the
On
seems
Service
announced company plans to issue and
tember; and of stock in August.
1.
can
They
remain open lor an
institutional
the
such
able
slated to open next week
of securities.
However, it
that
unique
are
find
peared to have presented
good
aside
set
with
of
run
well and,
mediately ahead is not to be con¬
sidered
overburdensome
if you
crossed.
The
off
bankers
Public
was
it' Wisconsin Southern Gas Co., Inc.
by
to pick up an
are
have
The calendar for the weeks im¬
keeping their fin¬
were
issues
Oct.
on
sluggish spell.
securities,
to
New
moving decidedly
work
to
both underwriters and their dealer
affiliates,
moment things
had accumulated during the
Report
new
the
order.
in addition, dealers have been
Reporter's
of
for
good
been
Distributors
prelimi¬
effects in the money market,
But
-
received
be
if this factor has any
nary
(10/1)
competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co. Bids—: Tentatively expected tc
& Co.
see
determined
be
Underwriter—To
Underwriter—To be determined by
Probable bidders: Halsey, Stuart
program.
competitive
Bell Telephone Co.
May 24 directors approved the issuance of $100,000,000
new
debentures.
Proceeds — For expansion program.
announced company plans issue and sale
was
Incorporated, New York.
Southwestern
& Hutzler; Eastman Dillon, Union Secu¬
Stone & Webster Securities Corn.; White^
Bids—Expected to be received on Dec. 3.
$7,000,000 of first mortgage bonds and about
stock. Proceeds — For construction
program and to repay bank loans.
Underwriters—(1)
For bonds, to be determined by competitive bidding,
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,
Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Dean
Witter & Co.; Lehman Brothers; White, Weld & Co.
(2)
For any common stock (first to stockholders on a l-for-»
10 basis): The First Boston Corp., Merrill Lynch, Pierce,
Fenner & Beane, Robert W. Baird & Co. and William
Blair & Co. (jointly).
Registration—Of bonds in Sep¬
$5,000,000
May 16 it was reported company plans to issue and sell
about $10,000,000 of debentures this summer. Proceeds—
For construction program.
Underwriter—May be Blair
Philadelphia Electric Co.
plans to sell $20,-
sell about
new
Co., New York.
company
first mortgage bonds. Probable bidders for
may include: Halsey, Stuart & Co. Inc.; Kuhn,
& Co. and American Securities Corp.
(jointly) 3
Wisconsin
(7/25)
Salomon Bros. & Hutzler.
securities, in the following form: $15,000,000 of
of preferred stock and $6,600,000 of common stock. Proceeds—To repay advances
of $9,300,000 from parent, and the remaining $16,000,000
for new construction. Underwriter — Glore, Forgan &
announced
was
rities & Co.;
Weld & Co.
July 25 for the purchase from it of
on
it
Salomon Bros.
$6,000,000 equipment trust certificates, series XX, to be
dated June 1, 1957 and to mature in 15 equal annual in¬
stalments. Probable bidders: Halsey, Stuart & Co. Inc.;
mortgage bonds, $3,700,000
a
Probable
Bids will be received by this company in New York up
announced company, a subsidiary of
Gas Co., may issue about $25,300,000
was
by~ competitive bidding.
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not ex¬
pected to be received until next Fall.
$6,000,000 of first mortgage bonds. Underwriter
—To be determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn, Loeb & Co.
8
000,000 of
.
and sell
(12/3)
Virginia Electric & Power Co.
South Carolina Electric & Gas Co.
Jan.
(9/24)
also announced company
was
Valley Gas Co.
April 15 it was announced company, a subsidiary.-©#
Blackstone Valley Gas & Electric Co., plans to issu%
within one year, $4,000,000 of bonds, $1,100,000 of note.*
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter,. in turn,
proposes to dispose by negotiated sale the first three
new
securities mentioned in this paragraph.
April 15 it was also, announced Blackstone plans to offe*
to its common stockholders (other than Eastern Utilities
Associates its parent)/and to common stockholders ©7
the latter the $2,500,000 of common stock of Valley
Gas Co., it is to receive as part payment of -certain
Blackstone properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.
if Seaboard Air Line RR. (7/11)
are
expected to be received tomorrow
Bids
($100 per share). Pro¬
ceeds—To repay advances from parent.
Underwriter—
None.
American Telephone &
Telegraph Co. owns
89.6% of the voting stock of Pacific T. & T. Co. Offer¬
ing—Expected some time in August.
Sept. 24.
•
new
stock and/or pre¬
Price—At par
on
Light Co.
plans to offei
public 400,000 shares of common stock. TJnderwriter—To be determined by competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co.- and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Eastman DiHon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Sept. 24.
to
some
was
Power &
March 12 it
July 8 it
Pacific
(9/24)
plans to issue and
company
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Ox
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co, and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly) j
White, Weld & Co. and Stone & Webster Securities Corpi,
(jointly); Kidder, Peabody & Co. Bids — Tentatively
1, 1957 from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
curities & Co. and Salomon Bros. & Hutzler (jointly).
(2) For preferred stock—Eastman Dillon, Union Securi¬
ties & Co. and Salomon Bros. & Hutzler (jointly); Harriman Ripley & Co. Inc. and Stone & Webster Securities
Corp. (jointly); The First Boston Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to II a.m. (EST) on Nov. 19.
Light Co.
announced
was
program.
to be received by the company prior to July
are
&
Power
sell about $15,000,000 of first mortgage bonds due 1987*
Proceeds — To repay bank loans and for construction*
(Calif.)
was
200,000
of
March 12 it
(jointly).
April 30 it
$28,000,000 of first mortgage bonds and
70,000 shares of $100 par value preferred stock. Pro¬
ceeds—To repay bank loans.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
May 24 it
Inc.
announced stockholders will vote Aug. 9
was
Union Securities & Co.
being given to
securities convertible into
July 6 it
$30,000,000) will be issued and sold by the company
during the year 1957. Proceeds—To repay bank loans
(amounting to $25,000,000 at Dec. 31, 1956) and for new
construction.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harri¬
man Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman Dillon,
pro¬
Proceeds—For construction program. Under¬
writer—For any bonds, to be determined by competitive
mon
Interstate
Feb. 11
is planning to
early this fall.
form
the
from
approving a new issue of $20,000,000 convertible sub¬
ordinated debentures, which are to be offered for sub¬
art &
(9/24)
announced
if Thompson Products,
authority
Public Service Co. of Indiana, Inc.
it was announced that it is expected that a new
series
of first
mortgage bonds (about $25,000,000 to
$8,580,000 additional equipment trust certifi¬
installments.
Probable
bidders: Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
two
July
sought
company
1958
of
in
cates
9
Commerce Commission to issue and sell $2,220,000 equip ment trust certificates to mature annually on Aug. 15,
18 for the purchase
Sept.
and
July
41
(201)
if Pittsburgh & Lake Erie RR.
(9/18)
expected to be received by the company up to
are
noon
.
MINNNEAPOLIS,
Minn.—Jack
E% Pearlove is conducting a securities business from offices at 1937
L.
son
D.
Becker
Avpnue.
Fla.—Joshua
Kenneth E. Ben¬
have joined the
Laurence
*
meanwhile, proposes to sell_$50 Girard Avenue, South.
and
staff of Alfred
& Co., 9575
Surfside.
-
Harding
42
The Commercial awl Financial Chronicle
(202)
Continued from page
Halsey, Sfuart Group
47/8% 1st Mtge. Bonds
Halsey,
Stuart
&
Co.
Inc.
The State of Trade and
other flat-rolled
The
4%%
first
mortgage
bonds, series Q, due July 1, 1987,
101.666% and accrued interest,
to
yield 4.77%.
Award of the
was
won
by the underwrit¬
at competitive sale yesterday
(July 10) on a bid of 100.806%.
ers
Net
the
proceeds
from
the
sale
and
from
proceeds
previous sale
of
additional
re¬
the
com¬
toward
company
connection
for
Demand for heavier steel
expected
the market until other industries
tress
in
come
for the
expected
are
to
off
taper
its
The
and
fourth quarters.
Some industries may be holding their steel stocks
fairly low levels into the fourth quarter. But others are ex¬
to
pected to start rebuilding inventories in the
future.
near
The
interest in each
Penn
in
18
north
counties
central
of
western
Pennsylvania.
its subsidiaries
important part of the
electric system of The West Penn
an
Co.
its
and
subsidiaries.
Territory
served by West
Co.
covers
about
Power
square
miles, and
estimated
Consolidated
of
nues
the
has
Penn
8,775
popula¬
a
production
far
so
this
will
year
about
residential—37.3 %;
follows:
as
commercial—
13.9%; industrial—45.9%; other—
2.9%. For the year
1956, the com¬
pany and its
solidated
subsidiaries had
operating
con¬
of
revenues
$73,479,236 and consolidated
income of $13,262,102.
prevailed right from
Production
of capacity,
a
lethargy stemmed from the July 4 holiday, the
vacations and the continuation of inventory
at
steel
consumers'
plants,
the
metalworking
weekly
Current
needs
J.
associated
Gruber
has
reduced
are
the
by
universality
of
metalworking plant shutdowns for summer vacations. The weeks
immediately following the July 4 holiday are favored. Some metal
consuming plants are closing down so completely they won't even
take in steel shipments from mills.
Slow
it was,
as
last week's
rate
was
far
better than
that
in
the
corresponding week of last year when a steelworkers' strike
held the pace to 14% of capacity. Some 2,009,200 net tons of steel
lor ingots and castings were turned out last week, compared with
only 344,655 tons produced in the year-ago week.
"Steel" estimates that while steel production
month, July's
affected
be 5V2
Absence of
total likely will
last
month
year.
times
it did last year, while
operating at
will
that
of
be off this
as
strike-
the
steelworkers'
a
will permit the industry to turn out
year
strike
as
Exchange,
lower average.
a
These factors will make for price stability:
(1) Steel
users are
absorb increased costs. (2) Numer¬
pass on or
in
the
Under¬
through
upward
adjustments
in
price
totaled
steelmaking scrap were not influenced upward by
new steel
prices. The reverse happened. Scrap eased off a bit
and lowered "Steel's" price
composite on steelmaking grades to
$55.33 a gross ton, a decline of 50 cents from that of the
preceding
(Special to
The Financial
MIAMI, Fla.—Thomas
become
affiliated
E. Lehoe
with
Securities
National Bank
The
Corp.,
Building.
EngMiami
American
2,057,000
(Special to The Financial,
Chronica)
WORCESTER, Mass,—vtunie
tons
Fosse
has
become
affiliated
with Gibbs &
Co., 507 Main Street.
He was
formerly with B. C. Mor¬
ton & Co.
Institute
that
announced
of
industry's ingot
on
For the
P.
Steel
the
companies,
ingot and steel for castings,
78.5% of capacity, and 2,009,000 tons (revised)
is based
La
and
having 96.1% of the steelmak¬
ing capacity for the entire industry will be an average of 80.4%
of capacity for the week beginning
July 8, 1957, equivalent to
The
Joins Gibbs & Co.
Iron
operating rate of steel
annual
a
The
higher
tons.
operating
than
based
are
A year
rate
capacity
on
an
for
month ago the rate
placed at 317,000 tons
was
rate
or
is
in
annual
as
was
the actual
ago
compared
week
a
the
capacity of 133,495,150 tons
like week
duction 2,214,000
production
as
with
in
of Jan.
1,
86.5% and
1957.
comparable
1956.
The
percentage
capacity of 128,363,090
capacity
figures
tons
for
of
as
Business Failures
is
1956
Jan.
Irpn
&
estimated
Steel
payroll
Institute
the
of
also
Iron
announced
and
Steel
this
week
industry
in
reached
1,
which
does
not
include
29
cents an hour for
pensions, social
security and other benefits. April hourly charges amounted to
$2,837 and in May, 1956 the hourly charge averaged
$2,619.
is
one
Holiday Curtailment Plunged Passenger Car Output
of
41% Under Previous Week While Low Priced Auto
the most useful tools in
securing
it's
Production Fell
This
new customers.
smart
to
(July 5)
operations of 37%
at
73,280
pared
FINANCIAL
Park
CHRONICLE
Place, New York 7
9%
cars
with
and
was
counted
by the statistical service
15,491 truck completions in U. S. plants com¬
125,909
week in 1956 netted
and
24,091
68,110
car
in
the
earlier
period.
The
same
and 11,561 truck completions.
and
and
finds
Chevrolet
consistently matching Ford in weekly
monthly production since April.
U.
S.
plants
built
their
4,000,000th
or
truck
of
the
in
Down
Holiday Week
industrial failures fell to 190 in the holiday
and
failed
concerns
than
in
the
comparable
1.939 when 208 occurred.
Casualties
last
228
with
week
liabilities
and
of
of
week
/
$5,000
or
dropped
more
to
158
slightly below the 169 of this size
year ago. Among small failures, those involving liabilities under
$5,000, there was a dip to 32 from 45 in the previous week and
39 last year.
were
Seventeen businesses failed
1 ^
in
as
excess
of $100 000. the same number as in the preceding week.
Tolls declined during the week in all industry
and
The sharpest declines appeared
groups.
9
ir. wholesaUng,
from 25, and in commercial service, down
milder
in
decreases
prevailed
manufacturing with 34
31
as
in
all
against
43.
in
retail
trade *
down
to
to 14 from 25, while
off to
trade,
from
102
137,
against 41, and in construction with
as
Casualties were less numerous than lasl ye^r
functions
except
which
construction
showed
a
moderate
rise from the 1956 level.
Failures
all
toll
to
rose
save
from
37
27, and in the South Atlantic States,
Marked declines occurred in most of the other
to 27 from 18.
up
lower in the holiday week in
the East North Central States where
considerably
were
geographic regions
.
regions; Middle Atlantic casualties dropped to 51 from 83,
Pacific to 43 from 75, and West South Central to 9 from 25. While *
seven
five regions
reported fewer failures than a year ago, three areas,
namely the South Atlantic, East North Central and West South
Central, had heavier casualties. No change from 1956 appeared in
,
the East South Central States.
Wholesale Food
Price
Reaches New High
Index
"
For Year
wholesale foqd
_
bv Dun & Bradstreet, Inc., moved moderately higher last week to stand at $6.23 "
it
price jndmt. compiled
2, as against $6.20 a week eariler. This .represented a
high for the year, and the highest since Sept. 27/ 1955 when
duly
on
new
$6.28.
was
The current figure compares with $6.05 a year ago,
rise of 3.0%.
Higher in wholesale price this week were wheat, corn, oats, '
beef, lard, milk, cottonseed oil, cocoa, steers, and Iambs. Lower ;
were flour, rve, barley, coffee, and eggs.
* »
The index represents the sum total of the price per pound of
31
raw
foodstuffs
living index.
and
in
meats
general
Its chief function
is
It is not
use.
show
to
cost-of-
a
the getieral trend
>
of
prices at the wholesale level.
Wholesale
Commodity Price Index Fluctuates Mildly
In
year
Latest
Week
The Daily Wholesale Commodity
Price Index, compiled by Dun
& Bradstreet, Inc., moved within a narrow range this week.
On
July 8 it stood at 292.11 fractionally above the 292.06 a \\reek
earlier, and it exceeded the 286.91 of the comparable date a year
-
grains, rubber, steel
.
Price declines
ago.
were
reported
and coffee.
Following
slackened
at
some
on
v
rise at the beginning of the period, grain trading.
end of the holiday week.
Wheat prices fell
a
-
the
moderately following reports that weather conditions in growing
improved. There was a slight decline in rye and oats
,
areas were
prices, and purchases lagged.
Although the buying-of
-•
-
#
.
Despite
decline
.
the crop
outlook. Flour receipts at New York railroad terminals
Friday totaled 76,090 sacks, including 31,615 sacks for export
44,475 sacks for domestic use.
prices continued at the
Rice
trading
was
an
Reports
was
increase
in
the recent storm
Although
were
the
exports
that
was
not
slight
a
rice
of
damage
crop
to
Cuba
in
coffee
Puerto
Rico.
Louisiana
in
serious.
decline
prices,
and
in Texas and
in
sugar
orders
close to those of the preceding week.
as
occurred,
There
was
a
prices
moderate
trading fell noticeably at the end of
week.
Increased trading
New York
last
}
level of the prior week, and
high and steady; wholesale stocks were limited. There
indicated
cocoa
week,- but
year.
stocks
were
•
corn
a
Reflecting the improved weather conditions in winter wheat
growing areas, flour prices fell moderately this week. Flour buying was sluggish, as most buyers waited for a clearer picture on
on
;
"
dipped moderately, prices ad¬
in soybean purchases in
Chicago, there was a slight rise in prices.; Sovbean trading on
the Chicago Board of Trade amounted to about 74,494,000 bushels
for the week, compared with 90,596,000 bushels in the preceding
week oir,d 105,677.000 bushels in the similar 1956 period.
somewhat.
vanced
the
car
an¬
a
decline
"Ward's" said the strong
output by low-price cars is in keeping
with their new postwar II record market
penetration of 62% this
year
fewer
pre-war
low-price field scheduled
their
assembly plants for
the week
23% of the industry's total
plants—thus avoiding a
long Thursday (July 4) through
Sunday holiday weekend.
Last week's production
THE COMMERCIAL AND
of
Railroads
ended July 4 from 271r'in the preceding week, as reported ;
by.Dun & Bradstreet, lnc
At the lowest level 1 his year the loll
was slightly below the 208. a year ago and the 204 in 1955.
Some
and
"Ward's" said that producers in the
Friday
advertisement in
Only 32%
week's
holiday-curtailed passenger car output plunged
41% under last week, "Ward's Automotive
Reports," reported
July 5, but low-priced field auto production fell only 32%.
place
American
week
that
May
the prodigious sum of
$338,000,000 which contrasts with
$331,000,000 in April and $333,570,000 a year acfo. The average
hourly payroll cost during the May month amounted to
$2,824,
Advertising
Commercial
scrap,
The
the
of
of
1.9% below the preceding week...
weekly production
because
Association
decrease
a
pro¬
1956.
BBBBBgBgg
was
1957
12.9%.
not
1955.
22,930 cars or 3% below the
corresponding week in. 1956, but an increase of 36,508 cars or
5.2% above the corresponding week in 1955.
Loadings for the single week ended June 29, were 14,415 cars
f ood
ago.
weeks
above that
1953 week
comparable
freight for the week ended June 29, 1957
the
cars,
This
nounced.
a
Chronicle)
the
above
the week ended July 9,
over
revenue
732,349
The
of
increased 665,000,000 kwh
rose
•
The base price increases last week averaged $6 a ton.
Prices
it
Loadings Below 1956 Corresponding Week
'
week.
25
Car
several
extras
months ago.
With Englander Sees.
your
previous week;
1,297,000,000 kwh.
the
prices will likely remain stable at their new level for
the next 12 months, "Steel" said. Last
year they were increased
in the summer and again in the winter.
with
writing Department.
So
and
this
much steel in 1957
Steel
increases
become
Smith, Barney &
Co., 20 Broad Street, New York
City, members of the New York
has
the
from
steel
for
segments of the public are expressing resistance to price in¬
creases.
(3) Steel companies covered part of their current cost
With Smith, Barney
Walter
lander
of
with
the month,
of
summer
finding it difficult to
s
start
publication pointed out.
net
.
the
ous
Stock
was
be
drop of 7.5 points from the preceding week's rate.
at
about 1,145,000.
operating
reve¬
company
for
1956
derived
were
steel
production in the week ended July 7 being 78.5%
reduction
Power
The company and
Electric
point in
beginning of
case.
Co., a sub¬
sidiary of The West Penn Elec¬
Co., is an electric utility oper¬
form
low
Slowness
tric
ating
957,
reached in July, according to "Steel" magazine.
able at regular redemption prices
ranging from 106.55% to par, and
at special redemption prices re¬
ceding from 101.67% to par, plus
West
J
power
Electric Institute.
or
July to Be Low Point in Steel Output
construction
bonds will be redeem¬
new
accrued
•
expected
third
in
In Canada, motor vehicle
year.
of electric energy distributed by the electric
industry for the week ended Saturdav, Julv 6,
estimated at 11,056,000,000 kwh., according to the Edison
light and
Loading of
cutbacks
11, 1957
Above That of Prior Period
last-half upsurge.
Inventory
ago.
year
y
amount
The past week's output
products—structurals, plate, and oil
country goods — continues strong.
Construction, shipbuilding,
freight car building, and oil country activity are expected to but¬
expenditures in
with
program.
tion
new
delivery are encouraging. A turther pickup is
September delivery.
shares, will be applied by the
mon
and
companies already have put through token orders
models.
Some mills report automotive orders for
a
behind last
Thu.sdiy, Ju
.
.
Electric Output Last Week Registered Substantial Rise
The
August
of
bonds, together with cash
sources
auto
their
for
at
bonds
4.3% rise from
a
plant vacation
•
are
Co.
Industry
to step up their orders after
users
shutdowns.
and
offering today (July
$20,000,000
of
West
Penn
11)
Power
week,
ouiput is mnning 4.9%.
Offer West Penn Power
associates
last
6
.
somewhat
boosted
cocoa
prices
this
week.
expanded somewhat to 288,169 bags during
less than the 406,501 bags of the similar week
Cocoa arrivals for
the
season
so
far totaled
2,137.921
,
-
bags
•
with
compared
2,607,561
bags
period.
in
the
corresponding
'•
v
4% to 6% above the corresponding period
1956
Wholesalers
trade
rose
Cattle
•
'
transactions
in
print cloths, bookings in cotton
close to those of the prior week.
goods lagged; prices were
ate
According to the Federal Reserve Board's index, department
.
And
that
to
of
last year.
see
I
so
in operation
are
immediate pos¬
no
would
that
say
the
community
can look for¬
confidence to the fu¬
with
I say this in consideration
of my five principal points.
(1)
12
Business has shown
an
pansionary trend in the first
this
be
to
there
and
year,
ex¬
quar¬
appears
immediate check to
no
ex¬
pansion.
(2)
Consumers
are
almost
cer¬
Related Monetaiy Factors
will be
close
forecast with pre¬
they
ture.
The Economic Ontlook and
a
that
was
I
and
ward
ter
ditioners
volume
can
But
business
registered. For the period of Jan. 1, 1957 to June 29,
1957, the index recorded a rise of 4% above that of the corresponding period of 1956.
buying of men's ligthweight suits, sportswear, and beachwear was
sluggish. Cooler weather somewhat discouraged sales of air con¬
but
one
sibility of their discontinuance.
was
gray
high level the week
ended July 5, while volume in household goods slackened some¬
what.
Women shoppers were primarily interested
in Summer
sportswear, cotton dresses, and
some
fashion
accessories; the
fans,
long these sustaining
permitted to oper¬
of 3%
WOMEN'S SUMMER APPAREL HIGH—Consumer interest in
and
credit
above that of the like period of last year. In
the preceding week, June 22,
1957, an increase of 11% was
reported. For the four weeks ending June 29, 1957, an increase
Bradstreet's Trade Review of the Week
women's Summer apparel was sustained at
undesirable
i
how
no
now
Continued from page
Dun &
and
1 actors will be
cision.
:
trading slackened at the end of the week, and prices
moderately, according to the New York Cotton Exchange.
The decline in prices was attributed to the failure of the midJune parity price to show an expected advance.
Except for some
scattered
Just
important factor in stimulating
an
was
during the June 29 week.
1957, increased 5%
Cotton
'
undue
store sales in New York City for the weekly period ended June
29,
"fell
■
of
store execu¬
ago,
year
contraction,
Continued hot weather
reported a noticeable rise in. hog buying, and
sharply. Hog receipts in Chicago tell considerably.
prices were sustained at the levels of the preceding week,
while receipts climbed somewhat.
Lamb trading advanced, but
prices dipped slightly. There was a moderate rise in lard futures
prices, and trading was high and steady.
prices
■
a
tives report.
V
A
counter
effective
tain to experience a continued gain
in spending power.
is
measures
promptly adopted by fiscal
with
the
rise occurred in them all for television sets, while sales
major appliances were sluggish. Purchases of barbecue equip¬
ment and garden implements equalled those of the
previous week.
There was a slight rise in the call for new and used
passenger cars,
(3) The slow rise in prices that
likely to continue will
strengthen business and consumer
un-
due inflation,
and monetary authorities.
slight
of avoiding
purpose
confidence.
y
of
and salts remained close to those
REGIONAL.
•
trade in the week ended this
a
year
according
ago,
of
a
ESTIMATES—The
to
A fourth definite
volume
dollar
of
retail
in 1957
availability and
present
Wednesday was 1 to 5% higher than
by Dun & Bradstreet* Inc.
estimates
Regional estimates varied from t
comparable 1956 levels by the
New England 4-5 to -f-9; Middle Atlantic
-
West
North
Central
West
and
Atlantic and Pacific Coast
South
4-1 1o
Central
4-5;
—1
Mountain
to
0
public
4-2;
South
has
1hat
that of the
occurred
ment
a
of
the
including instalnon-mstalment, climbed to $41.7 billion, up 7.2% over
and
ORDERS
increase.
1957
HIGH—Wholesale
slightly exceeded those of
clothing
coating ; fabrics
actions
orders
were
sustained at
year
a
was
weight
in. cotton- drills
ago.
for
a
from
automobile'^manufacturers:
and
work
fabrics
slackened,
conditioners 'arid fans
in
:
.
,
;•
«
•
'
"
this
rate
steel
lowest
level
since
the
first
week
of
August
1956.
AUTO
1he
first
PRODUCTION
half of
1957
HIGH—Total
exceeded
that
of
passenger
the
year
were
year ago.
.
were
5% higher than
a year ago.
There
.
Bank
"
week ended
States
-
an
L
*
from
109
cities
in
U.
S.
'
*
A.
us
had
week
•
'
for
109
above
a
cities
increase
.
.
.
.
.
.
.
against $23,223,78'6;319
' '
LL
Our comparative summary for each week is
of the Monday e< it:<on of "The
•
-
or a
Department store sales
on
a
given
on
page
country-wide basis
as
May and 124% for June
greater than
Retail
a year ago
trade
a
year ago.
volume
in
New
inflation
somewhat
Korean
Such
War.
were
2%.
CJity last-Wfek advanced
like
or
of
infla¬
an
of
us
It could
expansion.
into
such
a
situation
no
that has marked similar
have
that
avoid¬
cycle
So
long
as
at its present
to
business
high
pace,
have to operate in
tight
,
of 66.
Mr. Car¬
associated with
Hemphill,
age
With L. F. Rothschild
(Special to The Financial Chronicle)
must
have
future, we
deal
with
One of these realities is the
tinued
event
financial
there
is
the
any
slackening in the
then
we
can
deliberate
a
con¬
continues
This
lion.
This
of every
stream
of
total of $427.0 bil¬
that about $20
a
$100 that
spent in our
spent by government.
are
spending for goods and
represents
also
I
considerable
of business,
pace
expect a return to
a
money
has
sustaining factor and
established pattern.
see
government
months
sharp
no
the
armed
reversal
spending
ahead.
On
in
iri
all
ping-up
of
Exchanges.
Hodgdon Adds
in
seem
rather
to Staff
(Special to The Fin^nCMl Chronicle)
BOSTON,
Mass. — Ernest
S.
Mooney
has
become
connected
with Hodgson &
He
was
Co., 10 State St.
formerly with Jackson &
Company, Inc.
the
contrary,
Egypt and Jordan,
truce
with
connected
the New York and Midwest Stock
the
Korea
Now With Keller & Co.
(Special to The Financial Chronicle)
and
Indo-China, and the threats from
Russia
.
become
Strauss, Blosser & McDowell, 39
South La Salle Street, members of
serv¬
a
well
a
can
to imply a stepthan a reduction
BOSTON, Mass.—Leon Semonian, Jr. is now with Keller & Co.,
31 State Street. He was formerly
expenditures for with Palmer, Pollacchi & Co.
security. Moreover, the
for improved highways
is
Joins Merrill Lynch Staff
government
national
need
paramount, and
in
the
we
just
are
now
beginning stages of spend¬
ing billion of dollars for
a
limited-
access
highway
network.
Our
needs
for
facilities
and
school
health and governmental facilities
expanding
are
we
pattern
rapidly than
more
Schirmer Atherton Adds
of
our
income
der
ren
designed to
Schirmer, Atherton & Co., 50 Con¬
wages.
hours and
a
floor
We
on
BOSTON, Mass.—Harry D. Far-
deliberately
sustain effective demand. We have
ceiling
(Special to The Financial Chronicle)
existing
distribution.
Nationally, we are
following a program
a
(Special to The Financial Chronicle)
BOSTON, Mass.—Donald C. Uppendahl is now connected with
Merrill Lynch, Pierce, Fenner &
Beane, 18 Milk Street.
supply them.
can
Another reality is
a
Street, members of the New
gress
York and Boston Stock Exchanges.
*
security program.
We have a tax program designed
to maintain the purchasing power
of the lower income groups.
We
have
has been added to the staff of
vast and
have
un¬
growing social
price-support program de¬
signed to maintain purchasing par¬
ity in agriculture. I look for no
a
+r
Richard Harrison Adds
(Special to The Financial Chronicle)
SACRAMENTO, Calif.
ston
to
the
son,
Jackson
K.
staff
has
—
been
of Richard
Win¬
added
A. Harri¬
Inc., 2200 16th Street.
discontinuance of these programs.
To the extent that
to
the
chasing
power,
A
of
mass
(Special to The Financial Chronicle)
pur-
CHICAGO,
they represent in¬
111.
—
George
F.
Sutherland has been added to the
against depression.
sustaining factor is in¬
third
Lamson Adds to Staff
they contribute
maintenance
staff of
Lamson
Bros. & Co.,
141
West Jackson
Boulevard, members
monetary control. More than ever
of
York
before,
Stock Exchanges.
somewhat
the
CHICAGO, 111.—Neal S. Breskin
spending
means
economy are
telligent
policy of easier
Joins Straus, Blosser
(Special to The Financial Chronicle)
amounted, at an annual rate for
the first quarter this year, to $84.5
surance
In
Salle Street.
and
it is going
market.
CHICAGO, 111.—Anne K. Sher¬
man has joined the
staff of L. F.
Rothschild & Co., 231 South La
we may
economic
our
nevertheless
whatever
But
over-ex¬
pansion periods of the past.
taken from
Total dollar sales
York
rates were kept
would have experienced
there would have been
43
in the first half of 1957.
about
ex¬
or even
ing the familiar boom-bust
slightly in June after
allowance for the usual seasonal change. ~ The adjusted index is
estimated at 127% of the 1947-49 average, compared with 125%
for
-
the
meet
following World War II,
following the beginning
rate
got
2.3%
the Federal Reserve Board's index increased
;
to
would, no doubt, have been
accompanied by an unsustainable
Chronicle," under the heading viz:
"The Course of Bank Clearings."
-
to
tion
Our compilation of bank
as
price
the
clearings
June 29, showed the total for the
$23,753,016,608 (of which $11,681,164,690 were
to-be
System
supply all the
interest
we
that
preceding week, ended
clearings outside of New York)
.
price
by
Reserve
needed
10%,
that
that
of
ending Friday of 6.6%;
the
Federal
proceeded
low,
is
those
represented
was
8 to
it
the
Saturday, July 6, clearings for all cities of the United
(for which it
2.6%
in value of
greater, rise.
To put it another way, if the Fed¬
eral Reserve System had seen to
possible to obtain weekly;clearings) will
the corresponding weekj41ast year.
Our
totals for these 109 cities stand,at $21,229,161,140ngainst
$20,696,706,913 for the- 1956 week. At this Center there is a gain for the
be
total gain
traordinary demand for funds,
then instead of having a 3.7% rise
in prices, we might well have had
tele¬
that for
near a
reserves
.
indicate
rising
the
If
an
upon
credit
with
Indeed, somewhere
output
seasonal slacken¬
based
additional
rises.
increase compared with
Preliminary figures compiled by
graphic advices
1
-
clearings this week will show
year ago;
a
the
half of the
Clearings Up for Past Week
.
Bank
.
1933.
the troubles in
associated
was
prices.
ing of layoffs in the apparel, food processing, and textile industries.
4
levels,
ity
.
was a
a
end of February this
$3 billion higher than
expansion, in over-all business ac¬
tivity. Inasmuch as the economy
was generally operating at capac¬
Producers expect shutdowns for the long holiday week¬
moderately reauee output this week.
Initial claims for
unemployment insurance in the week ended June 22 dipped 6%,
but
Mortgage debt outstand¬
at the
last year.
end will
in
back
ingrained pessimism
This
injection of this additional
the past year was
sufficient to permit a substantial
Manufacturers stepped up the production of cars
and trucks nearly 4% last week, and output was.1.8% higher than
was
Noyes & Co., in Boston.
indefinitely the long upward
that, on the whole, be¬
billion, out of
credit* during
ago
son
movement
ment.
made.
The
period by 5.5%.
.
tinue
ices by government induces addi¬
tional spending on the part of
consumers and
business, and thus
for
output in
comparable
were
insistent demands have been avail¬
use
car
July 9 at the
of assuming that we can con¬
the
all
meet
policy of omission
a
ings
some¬
William M. Carson passed away
somewhat
are
wary
earlier. Consumer credit outstand¬
Many
were
producers raised their prices, but the increases
' \
timent of the 1920's
re¬
ing at the end of 1956 was about
$1:3 billion more than for a year
was
William M. Carson
had reached
and had conquered
year ago.
what less than expected.
■
been
,
Commercial bank loans, for
example, are currently about $7
billion higher than they were a
moderately below that of the preceding week, it was sharply
higher than the corresponding 1956 level when the steel strike
entered its first week. Ingot production in the previous week was
the
old
strong sustaining
economy
high level of business activity.
did back
many
we
are
the
much
too
the
cycle. Those of us who
enough to recall the sen¬
business
are
be
able.
total
DOWN—Anticipating curtailed production
Although
era
new
a
had in the
we
in
that sug¬
gest the continued maintenance of
de¬
a
growing expenditures
for goods and services
by govern¬
Notwithstanding the tighter
money policy, funds for the most
schedules for the Independence Day holiday, steel mills set output
at
has
year
] at 79.1% of rated capacity this week.
as
1920's that
a
has
sup¬
rather than of commission.
.
OUTPUT
to
demands for funds that
It
an
CLIMB—The
policy
refusing to
rhoney
sufficient
serves
trans¬
heavy construction contracts rose noticeably in
May, and exceeded that* of a year ago by 48%, according to
F. W. Dodge Corp.; principal gains were reported in the building
of streets, highways and electric power and water supply systems.
However, residential construction was fractionally below that of
May 1956. Total construction contracts showed a year-to-year
gain of about 14%,
STEEL
;
CONSTRUCTION- CONTRACTS
tighter
ply the banking system with
,
valuer of
assuming,
in the
(5) There
factors
realities of the existing situation.
The
attempt
to replenish; depleted stocks;' sales of rriajor appliances and television sets- fell somewhaL
Food buyers Were interested in fresh
meat, canned fish, and frozen foods, but volume in poultry, dairy
HEAVY
need to have
never
pression again like
1930's.
This would
like
to
gan
taken the form of
Retailers
products, and baked goods remained close to that of the prior week.
we
going
harmed the general public.
women's
high level, and
Bookings in girls' backa
while purchases of boys'
noticeable rise in orders for light¬
increased theif orders for air
dollar
with
that
not
am
critics of tight money.
In
reality, the Federal Reserve Sys¬
tem, in following a tighter money
program has benefited rather than
appreciably,
rose
apparel lagged.- There
•
has
concern
notable
some
dresses, coats, and suits
to-school
say
monetary authority
country, the Federal Re¬
System has been a target for
serve
May
year ago.
Fall
:
An upsurge in automobile credit
half
I
the
of
out of hand.
that tend
economy
pansion.
of
As the chief
rise
Total
more
APPAREL
.
the
credit outstanding at the end of May,
consumer
;
than
less than
was
(4) Over-all monetary restraints
promise to be sufficiently effective
to prevent inflation from getting
ex¬
tight money,
This
particularly
the
long-term economic
ly small businessmen, home build¬
ers, and school authorities.
This increase slightly
mouth, but
ago
during May 1955.
for
accounted
preceding month.
year
lessened.
in
to assure
costs
higher
over
factors
reduced
three very sensitive groups, name¬
CONSUMER INSTALMENT CREDIT UP—AWhe end of
May
instalment credit amounted to about $32
billion, up $369
exceeded
concern
been
-f4.
consumer
million from that of the
the
but in recent months the criticism
to
4-3;
to
pattern that is
is
borrowed money. During 1956, and
in
1957
so
far, there was much
m
following percentages:
4-2 to -f-6; East North Central and East South Central —2
The fifth and last point I would
like to discuss refers to sustaining
Tight Money
year ago.
total
Sustaining 'Factors
IV
tary
and
we
sensitive
over
-
all
have developed mone¬
techniques
that
permit
the
the
was
New
Midwest
previously in the research de¬
restraint of undue and undesirable
partment
credit expansion and
&
the restraint
and
Mr. Sutherland
Co.
of Cruttenden, Podesta
44
The Commercial and Financial Chronicle
(234)
provide
which
for
Mutual Funds
In
half
first
the
of
to
the
1957
companies
investment
nation's
continued
registering
(gains in the number of share¬
holder accounts, accumulation
plans, and in capital additions and
grow,
vestment
3,000
the
in
counts
estimated
The
Plan.
MIP
plans using closed-end
companies at the end of June
represented a gain of 42% in the
past 12 months.
Assets of the Association's
of
number
26
shareholder
closed-end
ac¬
and
136 open-end investment company
ber
companies
open-end
end
the
of
£9.7
first
billion
half
mem¬
at
year
the
were
with
compared
$'5.6
ago.
For
members of the National Associa¬
billion
reported
tion
the
closed-end companies,
Investment
of
Companies
26
the three million
mark
the period with an esti¬
mated
3,100,000 at
the end of
dune. This icompares with 2,497.254 at the end of June, 1956 and
sets
represents an
increase of over
(500,000 in the past 12 months ac¬
cording to the Association.
sults
passed
during
tion" accounts
factor
in
"accumula¬
an important
company
were
overall
the
increase
shareholder accounts. Their
ber
passed
March
the
reach
to
a
num¬
estimated
total
at
540,000 on June 30, 1957. This
is a net gain of 147,350 plan ac¬
in
counts
12
months.
Accumula¬
tion
plans enable an investor to
make regular purchases of mutual
fund
shares
on
a
monthly
or
qoartcrly basis. Over 16,000 such
year
as¬
June
30
were
approxi¬
billion, as compared
with
the June 30, 1956 total
of
$1.3 billion.
Growth in industry assets re¬
on
from
several
Association
points
investments
by
Half Gains
factors
in
the
market
investment
by
value
of
securities
held in investment company port¬
folios.
purchases of open-end
investment
the
above
the
for the
six
months
at
half of
fund
of
dur¬
of
1957
$705,000,000,
$669 625.000
first
chases
shares
company
first
estimated
were
recorded
1956.
shares
Repai
r
(redemp¬
tions)
were estimated at $225,000.slightly under the $235,000,in same period last
year.
000,
000
the
of
profits
but
twist
of
to
supplied
stocks
a
new
which
first of its kind
in
be
may
the
United
Known as the Initial Open-End
Mutual Fund Investment Club, the
tion
WRITE FOR
FREE INFORMATION
YOUR
PROSPECTUS TO
INVESTMENT DEALER OR
NATIONAL SECURITIES &
RESEARCH CORPORATION
if
the
PI.
E.
G.
Clarke,
Broadway, New York 5, N. Y.
clubs
selected
already
100
or
ciation,
$8.7 billion
decreased
inventory
club
portfolio
of
stock
purchased
in
as
or
far
he
the first investment
the United
States dealing
funds.
club
has
embarked
on
an
educational
ATOMIC
program to acquaint
the 15 members with mutual funds
DEVELOPMENT
and
the
system
whereby their
managements buy stocks and bonds
to provide a diversified
invest¬
-MUTUAL
FUND, INC.
ment.
GET THE FACTS AND FREE PROSPECTUS
the
movie
The
Keystone
that
than
has
cor¬
rather
than
profits figures.
relationship
between
from
costs
of financial
and
C.
of
clubs
for
the
stocks
common
pur¬
are
a
new
vestment clubs
bership of
now
with
a
data
prices
1927
and
and
the
to
economic indices
showing
(1935-39)
the
average
prewar
tho
to
years
or
However,
has
the
been
meet
monthly
other
advisor
nancial
chase.
with
and
records
choosing
pattern
for
of
in
the
members
to
broker
or
a
review
the
several
stocks,
fi¬
each month for pur¬
Each -member agrees
to
one
to
0f
ap-
with
net
assets
per share was $13.26
2,605,065 shares outstanding, a
over the $12.48 per
share
on
2,497,357
shares
six
assets
the
company
of
May 31, 1957, an
increase of $3,274,000 during the
year
$4,896,000
over
ago.
the
Federal
and
authorities
bust"
report adds
in
possibility
the
of
in
the
that
future.
Group
Se¬
that
a
basis has been laid, through
corrective
market
substantial
action,
forward
the economy.
for
movement
a
of
Massachusetts
Life
Fund
Dis¬
tributors
announces
the
as
appoint¬
Kynaston
wholesale distributor of Massa¬
chusetts' Life Fund
ington-Baltimore
in
area
Lawrence K. Carpenter
sale
distributor in
City
area.
the
the
Wash-;
and
as
Mr.
whole¬
New
York
to
oil
has
it
security
been
in
most
order
meets
to
the
all
have established for
we
has
the
mining
characterized
investments
in
stocks, and giving as an example
its purchase of shares of comparues
participating in the current
development of recently - discov-
ered nickel
«jn
optimistic estimates of
deposits in the Ungava
the
region,
section
concludes: >
p0jnting out these two
amples of
in
luture, have been substantial.
relation
to
current
antici-
and
ex-
price for
base
that
long-range
promising."
have risen
in
fields, with
many
resulting adverse effect
upon
earnings.
"In
Assets
vorable, the holding of
cash
and
U.
curities—in
warranted.
such
S.
a
of the "no-load" type
at
on
selective
a
individual
stocks/in
similar
that
to
months, would
sible
as
City,
_
of
the year
to
a
record $4,354,896 in
increase
an
63.4%
of
for
Peri°d> the net asset value per
manner
a
share increased 14.4% representing
past
a
six
rise
to
$176.07
per
share
the
capital gain distribution dur¬
ing the period of $4.72 per
Canada General
Fund
the
close
of
the
third
the
1957,
equal
figures
highs and
of
to
$14.29
are
compare
May 31,
shard,
per
quarter-end
new
with net assets
$69,552,576, amounting to $12.48
per
share,
on
the
May 31 of last year,
Standard
average
&
to
shire,
17.5%
Poor
500
increased less than
Increased investor interest in
is
Fund
Energy
Limited
amounts
increase
I stock
quarter of
its present fiscal year on
from
$153.92 12 months ago. Including
to be pos-
progresses."
General
the
over
$2,665,666 .at the beginning of the
Per|0£* June 30, 1956. In the same
basis
levels
the
appear
rose
the 12 months ended June 30, 1957,
se-
moderate amount is
attractive
more
managed by
F. Samuel & Co., New Yoik
Opportunity to employ
reserves
and
Fund,
open-end investment company
fa-
reserves-
Government
Up 63% in
Total net assets of Energy
your
generally
are
f
net
management feels that, while long-
prospects
r_
Past 12 Months
a
an
environment,
an
*
_
Energy ! uuil J otal
*
such
feel
potential is
,
materials, especially
costs of production
raw
metals,
the
«
considerable decline in the
a
our
service enterprises where we
earnings. Another is the
continued high interest rates, refleeting the heavy demand for
money.
And, although there has
pated
indicated
in the
rise of more than 42% ln shares
outstanding duririg the period to a
recorc^ 24, *34.
The fulK*» which specializes, in
investments in industries and cornPanies whose activities aie i elated
the field of energy and its
sources, announced the following
portfolio changes in the most re...
the
cent quarter: New commitments,
number of shares outstanding in-
3,000 Fansteel Metallurgical, 1,500
During the
12-month
period
creased from 5,573,481 to
also
a
new
6,220,368,
Henry T. Vance, President, notes
that at the close of the May quar-
sues
of
more
securities
Foster Wheeler, 1,700 Safety In3,000 Tampa Electric,
dustries,
high.
divided among
Personal Progress
that
sure
Fund's
tcr, the Fund's investments
1
as
investment po'icy in
natural
resource
fields, we
"Nevertheless," he said, "there* should, of course, emphasise that
are
developments which create the same criteria of selection of
problems of investment selection investments are utilized by the
and timing.
One is the relatively. Fund in all other fields, including
high quotations for common stocks manufacturing, commercial and
the
Both
six months and of
a
each
appraised
philosophy
months before.
,1%.
on
so
holdings in this industry."
Noting that the same investment
Ungava Region
for
number
over a
risk
portfolio
standards
semi-annual
report
of
Group Securities Inc. shows total, reports net assets of $88,896,840 at
net
weU-managed
oil securities
Further,
the
make
gain of 6.25%
Canada
$102,360,727
observes
properties looks
We.have, however,
consistent plan of di-
a
carefully
value
on
o{
e
oil
the
shotc.'
jn
$31,158,363 at Nov. 30, 1956. Net
based
170,000,000
naturally inherent
jn holding just a few possible 'long
owned, reached $34,536,940, a
high for any liscal reporting
period, compared
t
selected
av0-;({
securi-
Invests Now in
Assets Gain
ments of Mr. M. Richard
40 in Kalamazoo.
in
partly clue
the price of
to
1939
versifying holdings
while
more
35
now
and
,
f
£oJfowed
by
compared
as
Group Securities'
mem¬
than 100,000. One
local broker estimated that there
past
new
term
curities management now believes
Club.
development
in the financial
world, but have
spread like wildfire recently. The
New York Stock
Exchange says
that there are
roughly 10,000 in¬
are
ties
on
purchases of shares
preciation
these
Included in the Keystone report
a
chart
indicating the close
labor
investors
barrels in
Canadian
lesult oi
as a
corporate
reflected
improvements
"boom
chase
overall
48% from 1950. The
up
market
reported
is
flow,
considered a
of
progress
point
cash
generally
measure
basic
by
comparatively
PHILADELPHIA 3, PA.
$13.9
specialists
corporate
is
profits, is
stock
ea^ed
which
bright indeed.
Thevalueof total net assets
been
club, following the eliminating
second
Investment
or
total
years
billion."
pattern, now is in the process
organization under the title, The
of
qfc
$2.4
the
same
F. M.
.
profit,
first
on
shown.
C.
Tel. FEderal 3-1000
investment dealer
and
Regarding
the
business
and
meeting,
a
market outlook, the report states
subject, en¬
that "much has been accomplished
titled, "Your Money at Work," was
At
sound
Development Securities Co., Inc.
Prospectus from
two
"leS1Xm0"ths e"ded
incr
invest¬
example the raan-
an
as
„The
May 31, 1957.
The
The
through
your
more;
sold.
as
exclusively with open-end mutual
ATOMIC SCIENCE
Dept. C
1950
These differences be¬
more
knows this is
invest in
month
fund, which
may represent a
Mr. Clarke said that
1033 THIRTIETH STREET, N. W„ WASHINGTON 7. D.
and
$2.8 billion more; increased depre¬
significant
companies' stocks with
and generally is not restricted to present.
of
kinds
Atomic
1956
earnings is largely due to in¬
creased expenditures for research,
gross
the
Bullock, President, told shareholders in the re-
Mpy.Sb 19o7, paitly
an
one
barrels in 1956, the report
that*
dustry has continued at near capacity levels during the past six
months, Mr. Bullock said; employrnent and payrolls were also near
the peaks established in 1955-56.
Coj poiate expansion
programs,
comparing the two
report states, "The
difference between
tween
(j00
Hugh
in
factors must be
numerous
billion less.
per
25t'n
its
of
changes
of
optional methods of deprecia¬
tion accounting.
The Keystone economists point
The
half
The production of American in-
and
periods.
value
asset
in
first
of
office
each
open-end mutual
an
Established 1930
120
formed aj; the sugges¬
was
oL'
light
in
year,
the
of
as
ngement/s approach
to the oil
industry, where Canadian produc(ion iias grown from about 8,000,-
,
those
with
procedures.
Included
such items as changes in in¬
out that
liscal
8%
accounting
are
in
asset
present. This is an extension of
manager of B. C. Morton and Co. the figures starting in 1947 as re¬
Pie had conceived the idea that if ported
by Ewan Clague of the
the
investment
club
principle U. S. Department of Labor to the
would work in
purchasing indi¬ Joint Economic Committee.
vidual stocks, ic would have added
As
usual, the
Keystone
eco¬
advantages of diversity and safety nomic outlook presents a full page
-
FOLDER AND
the
in
1956
,
on
1950
for
and
share
of
a
figures
Citing
TA,
Ltd.,
recorded
shares outstanding, total
in
Canada
'trading' prof¬
its," such trading is not the pur¬
pose of the Fund.
Fund,
assets
ex¬
are
special study, the Key¬
stone report analyzes the corpo¬
rate
profit
picture,
comparing
States.
group
change,
last year.
In
better
the investment club idea
buying
the
has
little
dividends
to rise approximately
pected
J'rom
porate
Kalamazoo
aver¬
the last half
to exceed $440
show
will
corporate
out
Club Started
FUND
to
billion by year's end, up approxi¬
mately 6% from 1956. Corporate
which
INVESTMENT
expect
in
and
year
The
Mutual Fund
MUTUAL
A
Product
billion
$438
age
organization
National
Gross
considered
Investor
ing
fund
including ventory
evaluation,
accelerated
shareholders, amortization of defense facilities,
new
additional
the
mutual
net
in
ment
should offer quick
Assets Now
gains
A
Thursday, July 11, 1957
.
is very easy to think
Bullock Fund
Bullock
out
existijlg shareholders, and changes
in
figure
500,000
in
a
mately $1.4
iiet,
Open-end
pool
slight improvement in busi¬
year.
ness is in prospect for the second
Shares of closed-end investment
half of 1957, according to the mid¬
companies listed on the New York
year Economic Business and
Fi¬
Stock Exchange may also be pur¬
nancial Outlook just published by
chased
monthly
or
quarterly Keystone Custodian Funds, Inc.
under the Exchange Monthly In¬
Economists for the $340 million
total assets.
The
amount
common
a
purchase of the stock agreed
2nd
each of the first six months of this
Fund Association
larger
a
Keystone F orccasts $35 Million
plans were opened by investors in
Summarized by
or
into
upon.
By ROBERT R. RICH
The Half-Year
$10
goes
.
.
were
than 100 is-
in
18
industry
Ultramar,
9,000
Ltd.
Significant
additions: 1,000 Joy Manufacturin§» 600 Lindsay Chemical, 700
Royal
Dutch
Petroleum,
1,000
Texas Instruments and 2,500 Ven-
Borax
Consolidated
est products, 12.24%; utilities,
Denison Mines (stock and war11.00%; mining, 9.95% and stores rants), Home oil "B" and NorthLtd.
classifications, of which the larg-
tures,
est were:
(Holdings)
oil and gas,
22.09%; for-
9.07%.
span
A feature of the report
tion
headed"For
-
Term
Uranium.
Current holdings in the Energy
Fund portfolio are:
Oil and Gas (31.6%): 6,000 Brit-
of
ish Petroleum;/1J>0O Colorado In-»
industry is such that it
terstate Gas; 2;200 Gulf Oil; .7,100
"the
Canadian
Long
a sec-
Ltd.,
points out that al-
Growth" which
though
is
Eliminations:
dynamic
quality
Volume
Number
5G54
2.000
186
Skelly
Dutch;
Koyal
.
The Commercial and Financial Chronicle
.
.
Oil;
Lehman
9,000 Ultramar, Ltd.; 2,500 Union
Oil & Gas "A."
Utilities
Power
&
Light;
Houston
2,400
Light & Power; 2,400 Peoples Gas
tric.
A total net asset value of
4
(33.5%):
4,600
Wilcox; 2,000 Cutler
Manufacturing
Babtock
&
equivalent
49,178
share
June
at
$247,-
$26.74
to
30,
1957,
per
was
an¬
gical, 1,500 Foster Wheeler; 3,000
nounced jointly today by Robert
Lehman, President, and Monroe C.
Gutman, Chairman of the Execu¬
General Cable,
tive
Hammer; 3,000 Fansteel Metallur¬
1,000 General Elec¬
Manufacturing,
4,500 Machlett Laboratories, 500
Minneapolis Honeywell, 2,000
Newport News Shipbuilding, 2,000
2,500
tric,
Joy
American
North
Aviation,
1,000
Development Corporation
Nuclear
of
America, .812,500 Nuclear Devp^oment Corp. of America 5/67,
Committee,
1,000 Foote Min¬
eral, 2,600 Lindsay Chemical, 630
Magma Copper, 500 O'Okiep Cop¬
3,000 Philadelphia & Reading,
per,
lent to 824.67 per
of $14,439,655 for the quar¬
crease
while
undistributed
amounted
$4,433,593
of
share
per
stocks
adjusting
for
of
gains
re¬
a
port to shareholders.
Net assets at
equal
$19,264,151,
share
May 31, 1957 were
$5.02
to
per
the 3,834,640 shares out¬
on
standing.
with
compared
This
quarter,
with
bonds and
539,243
U.
Government
S.
net cash
items of $10,-
representing 4.2%
value
of net
miscellaneous
and
the
of
net
the
corporation's
items
cash
3.6%
of
net
$8,245,222
of
net
asset
During
certain
in
increased
were
the
investments,
existing
important being additions to
most
the
quarter port¬
past
the
holdines
additions
new
to
ter
shares
27,000
were:
the
quar¬
of
the
Murphy Corporation; 5,000 shares
of
Tho
shares
five
included
investments
New
m
Products;
pson
of
Potlatch
shares
5,000
Forests,
Ideal
American
of
Refining;
&
Cement:
Southern
25,000
3,000
Smelt¬
shares
of
shares
25.000
of
California
shares
Edison, and
Pacific Gas &
of
6.500 shares of P.abcock & Wilcox;
fund
The
newly established
producer in Cuba.
invested
in
fully
substantially
is
stocks,
common
Mr.
declared, such investments
Morton
being diversified in over 60 differ¬
ent
companies.
those stocks
able concentration in
considered
most
as
is
attractive,
an
important element in success¬
portfolio performance.
14
companies
leading
of total
41.5%
Hence,
represent
of
Ltd.;
"A"
Oil
Home
10,000 shares
&
"B"; 2,000
shares of International Petroleum.
Other
portfolio additions
were:
5,000 shares of U. S. Vitamin Corp.;
4,900
shares
of
Florida
Power
Light
3,347 shares of Houston
Power: 5,100 shares of
&
Tampa
of
Electric:
Gas
shares
5,000
International
Business
shares
Inc.;
nois
National
of
8.961
Glass
shares
of
Airlines
Owens-Illi¬
Co.; 5,000
Ltd.; 74,700
Ventures
shares
shares
British
sumer
Ltd.*
Coming Glass Works;
shares of British Petro¬
5,000
shores
of
Eastern
Corp.; 10,000 shares of Con¬
Power Co., and 5,000 shares
Edison.
Ohio
reduced portfolio
holdings included: 12.000 shares of
Sales
which
2.000
Rand-
Sperrv
shares
ended
of
Series
funds
ment
Oil;
slaves of Mission
shares
of
15,400
shares of
7.000
Monterey
June
National
28
mutual
the
in
set
six
15.100
a
Se¬
Oil:
invest¬
Public
months
Middle
record
for
shares
shares
30.700
Panpr;
Utilities;
South
of
Pcnn
10.000 shares of
this
period at $41,849,049,
of
crease
35%
over
similar
nearly
the
sales
increase
an
in¬
million
or
$30,963,403 for the
period last
Philadelphia
$10
year.
Fund
of
of
Stratton: 8.600 shares of Hono¬
TXL Oil* 5.000 shares of St.
curities
9.800
of
leum;
States
Oil
American
shares
Development:
Make New Record
the
of
of
Britalta Petroleum: 5.000 shares of
lulu
National Securities Sales
of
Ma¬
Portfolio eliminations were: 10,000
&
Purchases
of
Corn., and 650 shares
Coca-Cola: 2.000 shares of Briggs
net assets.
recorded
62.4%
in
a
the
Regis
General
0f
22.000 shares
of
Utilities:
21,800
Power
Light:
&
R.
Coffin, President.
for the
period amounted to
ord total of
with
of
Gross sales
$1,066,654
$656,746
in
the
as
a rec¬
compared
like
1956.
period
III
and
added.
were
extended
the
of
the
Commission
Public Service of
fuel
that
resources
must
pro¬
si^ch use is consistent
other
the
conserve
beneficial
public
which I have just
While
require
hensive
plan
seldom
the
that
for
each
that
river basin program
licensed
a compre¬
it
basin,
the
case
men¬
Commission
the
is
entire
an
is carried out
simultaneous construction of
over the interstate transmission of
all of the projects included there¬
electric energy and over public in.
With this in view, the Com¬
utilities owning or operating facil¬ mission may require that the spe¬
ities for such transmission.
by
cific
project under consideration
designed and constructed for its
be
Commission's
Power
Functions
The Federal Power Act
lor
coordination
the
Commission
development,
tion
rivers
for
other
and
the
by
orderly
produc¬
power
of
Congress
the
has
purposes,
which
over
jurisdiction.
provides
control
and
over
efficient
I of the Act
deals
largely
with
non-federal
projects, •and authorizes the par¬
ticipation by public and private
interests in the development of
Part
water resources.
Some of the
principal objectives under Part I
of the Act are: (1) to encourage
the development, conservation and
full
utilization
of
the
water
re¬
stances
the
under
use
circum¬
they exist, and at the
time require that the project
same
as
design be adapted to such feature
modifications as may be required
in order to insure its greatest con¬
servation use as further develop¬
ments
carried
are
comprehensive
out
under
the
the
of
available
this
license,
It
became
apparent
accordance
in
resources
power
approved comprehensive
river basin plans; and (4) to pre¬
serve
the rights of the public ita
its water power resources
These
have
period
just
for which
be issued.;
,
mentioned
,
li¬
a
,
^
which
objectives
four
by lim¬
have
I
often
below the
within
dams
its natural banks should the worst
flood of record
litz River
is
The Cow¬
reoccur.
important salmon
stream
and
under
the
fishery
license
an
the
City
required
fishery
to
conserve
the
is
construct facilities to
the
to
resources
extent
practicable. There was substantial
opposition by fish and wildlife
interests to the licensing of the
Cowlitz project because it was felt
the project would
have a very
detrimental
the
fishery
stream,
princi¬
effect
in
resources
the
on
pally with respect to the inability
to
pass
downstream fingerlings
over
high dams.
As a result of
a
license
condition, the City of
Tacoma,. in
cooperation with the
State
Federal
and
conservation
agencies, has conducted experi¬
ments resulting in the design of
a
"skimmer
so-called
collecting
grants
the
device"
for
mi¬
downstream
they can be passed over
Present plans call for
so
high dams.
device
this
Pelton
River
on
installed
be
to
Dam
in the
and
in
the
Deschutes
the
on
Brownlee
the Snake River, both of
Dam
which
high dams under construction
to Commission licenses.
enactment
of
the
Power Act
in
1920
information
for
Federal
that
of
was
Water
sufficient
enlightened
de¬
ommended
of
the
river
basins
1st Session.
Since that time,
States and such
investigations and
have come to be known as
Reports." Investigations made
surveys
"308
With
sites.
home
mer
the
tre¬
mendous
means
development
of
our
of transportation today, the
rapid
growth
shorter
the
in
population, and
become
electric
highly
licensing
developments
Federal Power Act.
be
of
time,
a
the
in
week
water re¬
our
recreational
for
sources
hour
leisure
working
allowing increased
the development of
has
gress,
formerly available
including sport fish¬
not
area,
factor
Congress has authorized investiga¬
tions and surveys of practically all
river
basins
within the United
offer
ing, boating, swimming and sum¬
hensive
plans for all public pur¬
That report was designated
Document 308, 69th Con¬
con¬
s
which
reservoirs
types
the
poses.
House
t
great opportunities for recreation
in
that
e c
provide large
cases
many
inland
of
resources
in
Act
j
p r o
under the Federal Power
structed
not available. Con¬
water
velopment
the Nation
Hydroelectric
after
soon
throughout the Nation be investi¬
subject to .the jurisdiction of Con¬ gated and surveyed in order to ob¬
gress;
(3) to provide for orderly tain the engineering and economic
development of the nation's water data needed to formi|ate compre¬
with
the
at
pursuant
all
operate hydroelectric projects
in and along streams and on lands
and
power
storage to keep the Cow¬
River
litz
City will
block of
the
substantial
a
time supply sufficient flood
control
Reports"
country;
to
same
are
plan.
The "308
(2) to sequently, in^a joint report to
responsible Congress transmitted on April 12,
persons or agencies, public or pri¬ 1926, the Federal Power Commis¬
vate, the right to construct, own, sion and the War Department rec¬
sources
purposes
important
of hydro¬
under
the
Also it should
pointed out that the utilization
these recreational
opportuni¬
substantial
ties
has
the
impact
economy
reason
a
of
on
of ,the country by
the increased demands
for recreational equipment such
Corps of Engineers as fishing tackle, boats, outboard
prior to the "308 Reports" dealt motors, etc.
almost
entirely with navigation
requirements. In more recent
Expansion of Hydro Projects
prehensive development of water
In the early 1920's hydroelectric
resources
and of the protection years, navigation has decreased in
importance and present day river
of the rights of the public by lim¬
projects were constructed princi¬
development plans under the Fed¬
iting the terms of the license. The
pally to serve the area immedi¬
eral Power Act center around de¬
other two objectives, encourage¬
ately surrounding the project and
velopment of hydroelectric power, were to a
ment of the development of our
large extent operated
flood
control,
conservation and
water resources, and the right of
as isolated plants.
However, with
enhancement of fish and wildlife
all
the improvements that have been
responsible persons to avail
lesources, the provision of recre¬
themselves of the opportunity to
made in the ability to transmit
ational opportunities and, in cer¬
construct and operate hydroelec¬
electric energy and the tremen*tain parts of the country, the pro¬
tric projects on streams and lands
dous load growth that has been
viding of water for irrigation. In
subject
to
Federal jurisdiction,
experienced over the years hydro¬
those instances where irrigation is
also deserve emphasis. As long as
electric plants are now closely in¬
an important factor, the revenues
the Federal Power Act remains in
thermal
electric
from
the
sale
of
hydroelectric tegrated with
its present form, it is the duty of
plants to supply integrated ele<>
the Commission to encourage in power sometimes pay a share of tric
systems, many of which exf
irrigation cost thus making it pos¬
every way the development of our
tend into several states.
To the
sible to provide irrigation water
water resources by all responsible
extent
that
energy
from thesb
which
would
not
otherwise be
persons applying for such permis¬
projects
enters
into
interstate
economically feasible.
sion.
commerce and is sold for resale,
-The
South
San
Joaquin
and
As I have stated, the Federal
the regulations under Part II of
Oakdale Irrigation
Districts are the Federal Power Act become
Power Commission is responsible
now constructing under a Federal
for the orderly, development in the
applicable.
Power Commission
license three
public interest by private and
Electric ep^rgy as you all know
dams on the Stanislaus River in
non-federal
agencies, of the
cannot be stored as such but the
California
to
provide irrigation
water-power resources on waters
same
effect is obtained by the
as
well
as
to
generate
subject to the jurisdiction of Con¬ water
storage of water in hydroelectric
gress.
This responsibility is car¬ power. The irrigation feature of reservoirs. This ability to store
ried out by the exercise of its li¬ this project was made possible be¬
water makes it economically fea¬
censing functions under which it cause the power from the dams
sible
to
install more generating
been sold under
a
50-year
is required that the Commission has
contract
to
a
privately owned capacity than would be justified
the Courts and
students of the legislative history
of the
Federal Power Act.
You
have neard much about the com¬
been referred to by
the Army
by
.
make
such studies and
investiga¬
in run-of-river
operation.
Conse¬
providing
possi¬ quently, storage enables modern
plants' to be^ utilized for
Oil and gas continued to be the
ble the issuance of the bonds re¬ hydro
short periods of time to supply
corporation's largest single cate¬
quired to provide the money to
peak loads and thereby reduce
gory for investment with the 879,- prehensive plans for water-sheds construct the facilities.
the cost that would be otherwise
264,319 invested in that industry as related to the needs of power,
An example of comprehensive
Indiana, and 26,700 shares of West
tions of
Penn Electric.
developments as will insure that
any
projects which may be li¬
censed are best adapted to com¬
representing 31.9%
of the
corpo¬
ration's net asset value. The next
first half of 1957, according to Roy
and
incorporated
was
additions
These
may
of
ful
II
jurisdiction
the
20,200
however, that reason¬
He added,
Parts
iting
Mines
chines.
a
and
cense
Co. and Antillian
Corp.,
exhaustible
vided
and to
resources
project be adaptable to
changes
Nickel
United
Steel
President
the
Part I of the Federal Power Act
6.000 shares of Falcon brid g e
by initial acquisitions of shares in
Kaiser
Steel
Corp.,
Jones
&
specialty steel
by
and
ing
Corp.;
Steel
of these
re¬
prevent waste
minor
as
make
companies which are producers of
various energy fuels. Investments
in steel stocks
were
augmented
Laughlin
was
and
of water-power
use
tioned.
Inc.;
5,000 shares of Emery Industries;
12,000 shares of Radiation, Inc.;
Anglo-Ecuadorian
of
holding
Oilfields, Ltd.
sources
replace the three sec¬
an independent com¬
efficient
in order to
and
the act
1930
make
confirmed by the Senate. In 1935
the Federal Water Power Act with
our
Among
portfolio during the second
Electric.
a
year.
folio
amended to
In
adequate
Army
as¬
share
Purchases which increased port¬
onithe 3,106,970 shares outstanding
folio
holdings
included:
5,000
Nov. 30, 1956, the close of the last
shares of Westinghouse Flectric;
fiscal
$14,337,722, equal to $4.61
Interior,
Agriculture.
5.000
Morton said in
W.
comprised
value at the end of the second
set
Inter¬
distribution, increased 15.8% dur¬
ing the six months period ended
May 31, 1957, the first half of the
company's fiscal year, President
Coleman
end
the
at
value.
capital
a
or
of the corporation's net
94.3%
represented
national Resources Fund, Inc., aft¬
er
capital
86,825,286
than
more
Common
and
assets
to
first quarter.
the
95.1%
Net
share.
Unrealized appreciation at June
30, 1957 was $143,627,967, an in¬
asset value and U. S. Governments
Up 16 Percent
of
with
remaining 1.5%.
At the end of the previous quar¬
ter,
common
stocks
comprised
Share Value
retaries
will
purposes
investments
Resources Fund
project
appointed
asset
Limited.
5.500 Ventures
Federal
Power
Commission composed of the Sec¬
a
mission composed of five members
preceding quarter,
the net asset value of the portfolio
amounted to $228,273,514, equiva¬
gains
Brush Beryllium,
creating
the end of the
ter,
(24.7%): 8,000 Algom
Mines; 2,000 Algom
Uranium
Mines, warrants; 3,000
American Potash & Chemical, 2,500
act
retaries with
Instruments.
Materials
Lehman
Apportioning Hydroelectric Costs
Between Taxpayersand Consumers
Corporation's mid-year report. At
1,700 Safety Industries, 3,000 Texas
Uranium
The
in
Under
16
page
much-needed
$247 Million
Light & Coke; 3,000 Tampa Elec¬
from
develop
Assets Rise to
Florida
(10.2%): 2,000
Continued
Corp.
45
(205)
two
largest
were
investment categories
public
utilities
with
$37,-
050,924 of investments represent¬
ing 1A9%
metals &
of net asset value, and
mining with $25,629,741
representing 10.3%
of investments
of net asset value.
flood
comprehensive river basin
control,
irrigation,
abatement, and other public water
uses.
carrying
functions,
it
out
its
licensing
is the responsibility
of the Commission to see
company
thus
sufficient revenues to make
munici¬ development
pal water supply, recreation, fish
and wildlife, navigation, pollution
In
utility
that each
the
of a stream is af¬
the Cowlitz River in
State of Washington. In 1951,
the
City of
forded
secured
to
by
a
Tacoma, Washington,
license
build the
rock
dams
authorizing
the Cowlitz River.
providing the same
capacity and energy from
electric plants.
storage
thermal
Thus hydroelectric
because
in¬
of
on page
47
projects are becoming
it creasingly
Mayfield and Mossy-
on
in
required
valuable
Continued
The Commercial and Financial Chronicle
(206)
The following statistical
Indications of Current
latest week
week
Business Activity
or
IRON
Indicated
Ago
oil
and
*2,009,000
short
(in
Previous
Year
Month
Ago
MIXES):
OF
tons)—Month
the U. S.
March
of
<
135.706
of
Mar. "
145.895
119.053-
160,501
,
tons) end
166,324
19.249
(bbls. of
average
7,237.9*9
7,034,350
7,418,450
—-June 28
7,180,900
June 28
-June<fci
June 28
1i7,515,000
7,359,000
8,132,000
8,144,000
27,339,000
27,313.000
27,476,000
27,482,000
1,783,000
1,895.000
2,119,000
2,125,000
——June 28
12,737,000
11,751,000
13,055,000
12,358,000
June 28
8.052.000
7,710,000
8,003,000
7,962,000
—
Tune 28
188,523,000
189,225,000
195,285,000
181.446.000
—-———————
output (bbls.)_.—
output (bbls.)
Distillate fuel oil output (bbls.)
(BUREAU
ALUMINUM
317,000
2,214,000
of that date:
are as
Month
12.9
86.5
either for the
are
Latest
Storks of aluminum (short
June 28
28,212,000
27,975,000
25,020,000
25,779,000
28
114,997,000
110,282,000
97,019,000
93,672,000
June 28
44,662,000
43,885,000
40,067,000
38,374,000
.
(bbls.)
stills—daily average
to
runs
————
Kerosene
of quotations,
cases
Ago
*78.5
£2,057,000
July 14
___a——————
Gasoline
in
or,
Production of primary aluminum in
INSTITUTE:
condensate output—dally
gallons each)
Crude
Week
production and other figures for the
cover
Year
PETROLEUM
AMERICAN
42
Month
£80.4
-—July 14
Equivalent to—
Steel Ingots and castings (net tons)
Crude
Previous
Week
INSTITUTE:
STEEL
AND
operations (percent ol capacity)
steel
that date,
on
Thursday, July 11, 1957
.
Dates shown in first column
month available.
or
month ended
Latest
AMERICAN
tabulations
.
.
———
Residual fuel oil output (bbls.)
AMERICAN GAS ASSOCIATION—For month of
April:
Total
■
; ■'/.
"."
.
(M therms )——___!_
sales (M therms
sales
gas
Natural
gas
'Manufactured
Mixed
•
,
-
sales (M
gas
6,961,100
7,592.400
6.585.900
6,739,400
7,333,000
6.215.400
22,500
25,300
29.100
199,200
234.1C0
341.400
-sales > M 'herms).
gas
therms)
_
Stocks at refineries, bulk terminals, in transit. In pipe lines—
Finished
unfinished gasoline
and
(bbls.) at—.
(bbls.) at.
Kerosene
Distillate fuel oil (bbls.) at———
Residual fuel oil (bbls.) at
—
une
———
Steel
CONSTRUCTION
ENGINEERING
CIVIL
732,349
746,764
671,785
Shipments
623,086
590,672
639,015
July 4
$483,609,000
$330,135,000
$442,699,000
$389,798,000
July 4
210.232,000
136,239,000
233,529,000
191,410,000
July 4
273,377,000
193,896,000
209,170,000
198.388,000
177,365,000
155,184,000
186,655,000
-145,737,000
96,012,000
38,712,000
22,515,000
52.651,00o
ENGINEERING
—
State
—.——
and municipal
OUTPUT
COAL
,
construction
Public
June 29
7,900,000
*10,395,000
8,900,000
690,000
(.39,000
545,000
(COMMERCIAL
BRADSTItEET, INC
steel
Export
190
11,550,000
10,391,000
289
208
271
5.670c
5.670c
$64.56
$64.56
$64.56
Orders
$54.83
$50.83
28.800c
28.850c
31.400c
26.250c
27.325c
29.275c'
at
"•!
14.000c
14.000c
15.000c
13.800c
14.800c
for
11.000c
12.000c
10.000c
10.500c
11.500c
25.000c
25.000c
25.000c
24.000c
97.875c
97.375c
98.500c
92.875c
87.50
87.25
o
July 9
—July 9
16.000c
'
"VV
•"
of
88.19
98.57
94.86
97.31
93.82
93.67
.
94.41
95.92
95.16
96:38
95.16
July 9
■
Group .—.—
Utilities Group-
'
;
,
(in
ZINC'
2.000
OF
104.14
85.98
87.45
90.77
92.79
102.96
93.67
to
.7
95,62
93.08
95.01
105.86
UNITED
STATES—DUN
INC.—Month
of
U.
2.93
4.11
3.48
3.98
4.01
3.84
3.26
To
North
4.06
4.08
3.92
3.37
To
Europe (net
-—July 9
.-July 9
.July 9
4.15
4.16
4.06
3.50
To
Asia
4.72
4.71
4.60
3.78
To
South
4.36
4.36
4.22
3.57
4.16
4.16
4.03
July 9
4.20
4.07
3.40
426.1
425.5
426.4
: 415.3
270,298
—
230,949
261,409
31,539
275,348
261,684
S.
of
exports
.(net
(NEW)
A
92
11,986
Other
'3
88
370,740
372,551
384,116
and
(net
of. Junej.
Ceutral
America jnet
Total sales
America
* ■
-
-
COKE
110.18
—July 5
110.15
(net
Other
:
-•
~
-
o
219,690
323,020
(
Oven coke
——June 15
1,687,310
1,043,990
1,457,520
1,065,650
——June 15
2,031,500
1,263,680
1,780,540
1,318,500
—June 15
June 15
430,790
211,520
389,380
24,800
15,800
23,000
-
218,520
376,960
251,96o
419,)30
234,320
399,960
278,76J
..June 15
611,225
371,930
658,420
490,69r
——.—,—
sales
purchases
off
—
>une 15
(net'tons)-_s__;
ton's)_l'__2__.iv__.
(net
(tons
Refined
...
DEPARTMENT
ON
OF
Y.
N.
for
Without
490,440
716,760
581,635
2,997,585
1,832,440
2,748,720
2,087,547
493,630
337,940
478,610
352,910
Revenue
from
June 15
2,773,035
1,650,500
2,418,650
1,825,985
/•March
2,178,895
15
Number of
Short
3,266,665
1,988,440
2,897,260
sales
EXCHANGE
FOR
Total
$58,590,113
1,284,529
of
887,430
7,924
$53,593,00
7,490
j
4,234
1,298,523
$67,472,968
"
182,600
ACCOUNT
37*4,080
354.260
*
487,490
OF
MEMBERS
Other
.
June 15
564,120
428,110
575,790
—June 15
13,337,630
8.802,590
——June 15
sales
m,
.
LABOR
—
PRICE8,
NEW
,
,
(1947-49
=
SERIES —U.
,,
8.
13,034,650
13,901,750
9,230,700
13,610.440
415.260
OF
•
8,948,610
9,363,870
100):
IN
•
number
-
Nuniber
ofof
commodities
.July 2
products
Processed foods—
Meats
}
—
———————
All commodities other
then
farm
and
foods
RAILROAD
==
1. 1957,
as
^Includes 1,200,000 barrels of foroien
against Jan.
1,
117.4
117.1
117.5
113.9
.July 2
_July 2
July 2
90.4
90.2
90.6
89.2
105.7
*105.1
106.5
102.1
93 1
*91.3
95.7
54,202,840
54.125,833
52.816,874
'■
ASSOC'I;
U.
ii-—AUTOMOTIVE
passenger
125.4
125.2
125.3
121.4
r
63.800
165,100
12,00(1
"•
-
76.8
'
V
!
-
v
-
6.100
'
24O.90G
■?".••'*
of
: ♦">
r
! 78.0
179.700
'
-
•'
244.300
•
'■
81.3
FROM
MANU-
'
•
r
cp^ches.___ .__U._.."iT._ 1
CLASS
I
AMERICAN
ROADS
593,387
632,637
538.052
500,669
...
fears——*i'2_„.
trucl«—ijr.i
May.:
:v
238,GOO
motor
EARNINGS
6,00c
-
Cv 157,200
11—
SALES
49,600
-
9,600
6,600
shipments (units)..—
100)
•
8,300
-
vehicles.
SOCIATION OF
Of
52,300
...
(units)
(units
531,727
445.753
100,485
91.79 V
.V
92.349
-
369
-
-
425•
503
(AS¬
RRs.)—Month
,
operating
operating
ratio
T?.xes
revenues...!.!.
.1!
1
S90G. 512,551
S886.054.05i
$924,857,005
713.552.984
690,355,315
701,077,691
78.71
expense's—
,
7701
75.a0
80.4
July 2
crude
runs.
SBased
on
new
annual
canacitv
of
193 495 150
tons
tNumberofordersn"
since ^introduction of
Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
1956 basis of 128,363,090
o^half cent^pound
+Prime Westpri*
$712,949,000
March-31
at
shipments
FACTORY
of
Total
tons.
'
;
•_
Net railway operating income before charges
Net Income after charges (estimated)!.
ZINC
of
Revised figure,
of Jan.
43,905.715
$775,742,000
of motor
Operating
Farm
46,216,760
S762.232.000
shipment^ (units
VEHICLE
Total
DEPT.
46,167,336
1
FACTURERS' ASSN.r-Month of June:
Total
Commodity Group—
*
range
heater
.Number
Total sales
119
of
/. i
shipments
round-lot sales—
WHOLESALE
as
water
PLANTS
182*600
(SHARES):
„
124
*123
.
:
burner
boiler
Number
STOCK
Short sales
All
conversion
MOTOR
433,030
•
ROUND-LOT STOCK TRANSACTIONS
AND
.
MANUFACTURERS
May,, < J947-.49
.
547,810
*.125
122
180—
=
INTERSTATE COMMERCE COMiMISSION—
Index of Railway. Employmeirt at, middle
790.126
$40,651,871.
374,080
237,090
341,980
56,203
127
■'
'
Domestic.gas
794,36'
14,739:
079,940
237,090
142.961
RE¬
customers—month
—.1
'
-
Gas
1,313,262
$44,688,041
341,980
116,716
139,842
vorial ions
ultimate
APPLIANCE
(las-fired
\ '
Y.
120.351
155,365
■
.
,
uitiir.ate .customers
"
1.001,127
$76,726,917
1,276,605
.June 15
THE N.
145.740
—
SALES—FEDERAL
INSTITUTE—
Gas
1,424,509
$65,663,329
_JUne 15
Round-lot purchases by dealersNumber of shares.
-
1,040,077
$82,069,610
June 15
ON
118.897
144 013
( tons
ATION—Month of May~-tvv /
Gas-fired furnace shipments (units)—.
1,499,134
June 15
sales
SALES
*110,070
1
*
-
"Kilowatt-hour sales to .ultimate "consumers—
Month" of March (000's omitted11.'
June 15
STOCK
105,619
1,742,772
.
J !
adjtistinent—
,
by dealers-
TOTAL ROUND-LOT
251,314
*2.108.14?
■
June 15
.
sales
Other
6.379,919
2,153,910.
151,045
'
seasonal
GAS
.June 15
other sales
shares—Total
262 459
pounds)...—-
EDISON ELECTRIC
73,260
ODD-
June 15
--------—
,.
__i
Number
short sales—
Customers'
Dollar value
6.631,233
*6.631,662
219,081
508,37
STOCK
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Round-lot sales
2.000
seasonal
132,590
EXCHANGE-r SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t
Number of shares—„
June 15
Dollar value
.June 15
Customers'
*6,894,121
G.221,182
V r
May:
j
SYSTEM—1917-49 Average
'
SPECIALISTS
ot
ol". June:
Adjusted
584,170
june
AND
of
STORE
102,450
—
DEALERS
2,442,000
^
A.—
SERVE
387,990
...
•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT
LOT
S.
jiounds)
—
June 15
sales
U
In U. S. A. (tons of 2,000
pbunds
Refined eop.ner stocks at end of
period
of 2,000
pounds)—
280,5"
124,640
sales
Other
39,241.000
2,30.6,000
39.030.00,
2,564,0,
\
1
2_,
"Deliveries to fabricators—
690,795
purchases
Short
43.280.006
6,440,263
-
of month t ngt tons)
of' 2,000
(tons
815,435
Total round-lot transactions for account of members—
Total sales
1,316,350
—June 15
—
Total sales
Total
1,700,920
June 15
—
tohs) :_J_-
stock at end
June 15
sales
110
MIXES)—Month
Month
—-
Short sales
Other
1,248,990
floor-
the
:
26,800
394,930
Crude
252,850
—
transactions initiated
Total
504
'
-
•-
,
Copper production in
Total sales
Other
126,795
8,486
!
tons
COPPER INSTITUTE—For month
344,190
——
Short sales
116,727
11,005
5DNES)—Month of April;
pet. tons)__
coke
Oven
the floor—
on
purchases
244.136
84.404
270,461
(BUREAU OF
Production
108.87
110.20
363,360
102 520
■
■tons)„—__ij_:.:.m.__^__.__
Beehive "coke'(net
1,955,570
—
—
Other transactions initiated
Total
—
,
13,142
248.673
tons)
tons)_.'l____—
|net tons:
418,186
nine la
sales
12,073
' anthracite
•
Bituminous coal »nd lignite
Pennsylvania" anthracite:
97
June 15
——June 15
—
885
IN THE
Undesignated
281,60*
June 15
Short sales
126
693
MEM¬
OF
purchases
114
BKADSTKEET,
Pennsylvania
tons),
COAL OUTPUT (BUREAU OF
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total
34,003
119
"
ACCOUNT
59,577
42,102
■
582
.
-month),.-
May--—--I—----------
257.108
272,591
—Juno 29
,June 29
—June 29
—June 29
,«
at end of period—
FOR
69; 568
3.46
4.16
July 9
TRANSACTIONS
•J
....
3.50
OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1849 AVERAGE = LOO
—
ROUND-LOT
81.238
80 332
105,531
(BUREAU OF MINES)—
of April:
v.
4.24
********—
(tons)
r
'
COAL EXPORTS
J"jv 9
activity
96.506
'7
-89.611
112,775
302,198
order (end of
on
INCORPORATIONS
104.83
93/67
BUSINESS
99.52
90.77
3.60
NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons).
Unfilled orders
5.092,354
RAILROADS—b
AMERICAN
3.58
MOODY'S COMMODITY INDEX
Percentage of
.j'/15,270.493.
-V.'/
Month of May : .«.: \kunits installed m^service_:I_-__"._
Month
—.—
6,667
;
••
96,855
4.23
Group
(tons)
*!
v.
pounds)-
.July 9
Production
'
INSTIf UTE^INC,—Month [of
New locomotive units
July 9
Aa
Industrials Group
;
133,072
INC.
v.--;'--..-.;
transported by 3.77
tons5.249,544
July 9
—
105,190
freight
—July 9
Group
ASSbCIATIONS,
April:
106.39
w
——
J
8.961
7 «'.J J- 97.006
Locomotive
108.34
.
DAILY AVERAGES!
;i_:
--2-493
6.429
,-r
'
104.48
.
85.85
III—I—
——
of
—■JuJy 9
Utilities
78.000
:
undelivered
'r
TRUCKING
ASSOCIATION
94.49
;uly 9
'
Average corporate
Railroad
and
•
.July 9
!
Railroad
Public
order
011
month
—Month
••
July 9
Baa
,'
3.423
f- :V- 8,824
ears
deliveredL't
cars
cars
Shipments (tons of-2.000 pounds)>.
Stocks at end. of period-' (t'oijsjj'
,v
Unfilled orders, at end of period .( tons),
13.500c
'
92.50
92.64
-July 9
—July 9
Aaa
;
May:,,
V:
Slab zinc smpltec output "all grades (tons of
14.000c
July 3
--—July 3
July 3
—
U. 8. Government Bonds
294.698.000
>
CAR INSTITUTE—
freight
new
of
AMERICAN
15.800C
10.500c
Aa
YIELD
RAILW AY
AMERICAN
39.350c
13.800c
-
,
_
BOND
12,528,000
export.
barrels„v—
(
45.425c
/
July 3
Government Bonds
MOODY'S
291.391,000
484,000
domestic-and
—
stocks
5.179c
•
•
.July 3
—
—
Aaa
Public
310.700,000
all
freight
(end
$44.83
5.670c
——July 3
——
—
PRICES DAILY AVERAGES:
Industrials Group
15,224,000
Backlog
$57.17
$54.50
.
.July 3
Average corporate
A
12,111,000
.July 3
r
—
pig. 99% ) at
Straits tin (New York) at
U. 8.
18,196,000
carriers
Aluminum (primary
MOODY'S BOND
39.000
28.942,000
19,492,000
Intercity general
—
at
Louis)
34,000
21,852,000
Month of May:
New
June 30
———June 30
.—June 30
—
at
(East St.
Zinc
24.790.000
33,000
105
110
\
.
at—
Louis)
(delivered)
(St.
fZlnc
225,625.0*0
23.082.000
25,904.000
_
ton)
at
at—
Lead (New York)
Lead
119
11,056,000
—.July 4
r
refinery
215,099.0)10
25,573,000
(barrels)—2——!!!!!!_!'
—.
(E. & DL J. QUOTATIONS):
refinery
250,454.000
239,214.000
(barrels
imports (barrels)—
product imports '(barrels■)!!!_!!—_'
AMERICAN
Electrolytic copper—
Domestic
output
output
consumption
(barrels).
&
DUN
—
(per lb.)
(per gross
PRICES
METAL
107
July 6
INDUSTRIAL)
AND
Pig iron (per gross ton)
Scrap steel
238.815,000
< barrels;
'(barrels of 42 gal¬
output
■
IRON AGE COMPOSITE PRICES:
Finished
264,820.000
oil
crude
oil
Decrease
—
fin 000 kwli.)_——
Electric output
FAILURES
7,783.873
INSTITUTE—Month
Indicated
672,000
INSTITUTE:
ELECTRIC
10.490,376
7.821,613-
tons)—
_!
gasoline
Benzol
Crude
7,198.000
June 29
INDEX—FEDERAL RESERVE
8Y8TEM—1947-49 AVERAGE = 180
-June 29
RDISON
Natural
Refined
—
*3,814,780
7,349,752
met
each)
Domestic
-
SALES
DEPARTMENT STORE
9.808.000
'
products
PETROLEUM
lons'
-
OF MINES):
(tons)
anthracite
Pennsylvania
4
lignite (tons)
and
Bituminous coal
~jUJy
8. BUREAU
(U.
.of.''Mayr!.;—!.!j—!!!_.
steel
March:
of
.—
construction
Private
of
Total domestic production
construction
S.
U.
INSTITUTE:
of April
AMERICAN
NEWS-RECORD:
Total
STEEL
755,279
615,406
AND
steel for castings produced
and
tons)—Month
Month
freight loaded (number of cars)
—June 29
freight received from connections (no. of cars)—'June 29
Revenue
ingots
(net
ASSOCIATION OF AMERICAN RAILROADS:
Revenue
IRON
AMERICAN
OXIDE
(BUREAU
891,009.454
$92,471,419 R100.469.035
81,201,633"
102,637.490
65.000,000
61,000,000
-86,000,000
14,747
OF
80,798,427
*16.854
15,914
*15 386
13,504
28,710
29.877
26.646
MINES)—Month
April:
Production
(short
tons)
Shipments
(short
tons).
Stocks
at
end
of
'Revised figure.
month
(short
}By 382
tons)
carriers (In tons).
15.933
Volume
5654
Number
186
.
The Commercial and Financial Chronicle
.
.
(207)
\\
Blind
"It is necessary
that all of
Optimism
our
to warn against
'built-in'
'automati¬
can
cally' prevent maladjustments from becoming acute,
and that cyclical problems are
ability to meet system peak
nomic
done
offset
to
eco¬
is also
it
of
rp
Sen. Paul
Douglas
tions
not
are
omnipotent.
with the price level
pace
potential countercyclical impact in times of
sion has become
proportionately less
—Senator Paul H.
We
the
in
are
the
economic
the
long
the
few
a
products.
.
,
.
iro
S
Sales
i
which
$15,772,142
n
61.7,771
in
had
in
1952
shot
1956,
to
$10,061.933
in
the
with
spite
amounted
the
of
pay-
price
just
of
before
is
dividend
29%
of
because
0f
/c 01
customers
between
Furthermore,
it
^n;^ts.a ®dal*e
2^I5'80!^
privileges, and
total
shares
stock is held by the Factor family,
cooperates
the
number
During the period of heavy capital
cents
share
a
on
of shares.
Management is keenly interested
in solidifying its position in the
industry at a higher level than in
the past. They have budgeted for
sales
approaching $40,000,000... in
the
current
vesTr
year.
During
the
-e not
buiifup, earnings are not expected
to
£.'.1..
*1
i„
1
fully reflect the gain in the vol-
although
ume,
should
from
reach
95
when
share
$1.25
cents
one
per
1957,
in
1956.
in
what
realizes
up
However,
have
the
relation to
in
-
now
_.
.
selling
jjalsey
a llttle under $10, Thls 1S eighi
times nredirted earnings nf S1.9.S.
times predicted earnings of $1.25.
.
dividend
of
cents
50
ably coming in the form
(probof
two
regulars of 20 cents and two
cents
five
is
well
it
as
covered,
did
ex-
cosmetics
merit
over
control
of
earnings
the
industry,
management
becomes
elehas
are
advertising expenditures
planned, the incremental sales
dollars
will
The
take
the
lessening,
tures
a
higher profit
necessary
care
plant
expansion
of the increased pro-
sum,
much
this
could
be
i
■
a
is
faciiities, such
as
those
now
under
Stuart
ily financed from internally genfunds.
Central and South West
Wilmington, Delaware
tv
& Co
Inc
122
Joins Boren Staff
BEVERLY
HILLS,
Calif.-
nets today have
me
feasible
found
0mmendations
structed
as
.
-
are
made
Board
Power
of
Company
to
Ohio—Michael
MANFIELD,
has
become
Central
payment
cents per
the
on
Common
F
connecte<
States
the
dividend of 60
share
!
m
Russell
with
authorized
a
Investmen
August
owners
1957.
outstanding
payable
share
July 19,
Stock,
20,
of
1957
to
record
"
DIVIDEND
Co., 271 Poplar Street,
ON
PREFERRED STOCK
The Board of Directors also
of
the
NOTICE
DIVIDEND
authorized
a
quarterly
Preferred
the
payment
dividend
Stock
as
on
fol¬
lows, payable October 1, 1957
to
r
share
of
owners
record
September 6, 1957.
the
a
13,000,000
■CHARTERED
1799'
THE
Ghase
(4)
Manhattan
•
n
T...
BANK
in earnings is in the near
1957
ol
to
has de¬
Bank
dividend of 60c per
share
PER SHARE
$4.50
$1.121/2
capital
$4.52
$1.13
payable August 15,
$4.16
$1.04
of
the
holders of record at the close
business
CONSUMERS POWER COMPANY
July 10, 1957.
The transfer books will not be closed
in
CLASS
on
shares
stock of the Bank,
:
STOCK
Directors
of
(Special to the financial chronicle)
that power generat-
/'worCd-wide banking^
of
has
With Central States
provide
as
NO. 178
COMMON
Consumers
has
"necessi-
ing sharply rising sales; and
surge
The
Where it
to
part of the initial deso
ON
»
DIVIDEND NOTICE
(3) it is experienc-
connection
with
the
payment
Scw&ep 0ut4t*te
MORTIMER J. PALMER
V
tee
Preudent
ana
Secretary
J
I
/
JACKSON, MICHIGAN
of
this dividend.
■f
:>off ing:
DIVIDEND
recom-
industry whose prod-
definite indications that a strong
can
Secretary
(Special to The Financial Chronicle)
clared
be read-
Mexico,
era ted
wa
speer
generating facilities initially, rec-
perhaps most important, it shows
Mexico City,
LEROY J. SCHEUERMAN
the
of
T
The Chase Manhattan
Paris, France and
in
an
no
un
*
particular project.
not
a
management;
construction
I
a
previously with Paul D.
Ke
neces-
„
With the
I consider this stock an
an
declared
larger
the
However, any new
and
t
attractive purchase at the current
leader in
Corporation at its
held on July 10, 1957,
regular quarterly divi¬
dend of forty cents (40c) per share
on the
Corporation's Common
Stock. This dividend is payable
August 30, 1957, to stockholders
of record July 31, 1957.
meeting
an\
candidate for a dividend increase,
In
and South West
Dan]"el Nadler has'jrined the" staL
"iei nat:ue1 nas joi iea tne siai.
mendations as to the amount of of Boren & Co., 9640 Santa Momci
capacity that should be installed Boulevard.
,
ties"; (2) it has able aiid seasoned
company.
on
the capital expendi-
on
The Board of Directors of Central
En-
last whether penstocks should be con-
especially
duction demands is largely behind
_
views
price because: (1) the company is a,
carry
margin.
to
on
issue of common stock.
apparent., pressure
Moreover, if sales exceed the level
for which
paid
dend
the
makes
for, advertising and promotion in in,view of the usually lower divi- vei0pment
the
Army
features 0f such proj-
..
.
■
.
the
studies which lead to
sary
The class A stock is
of
r
with
Tke
ectg
earnings.
year)
arp
added
recla™aJ-10n Pr_^ects- The staff ol
Federal
Power
Commission
common
lne common
dividends naid
keen very modest
large tras
a,
percentage of the sales dollar goes
The
stock,
^pencntures, dividends paid ha/e
profits- The
the
or
.
stork
CXDenditures
in
Canvon
HpIIs
personal
gineers and the Bureau of Reclamatiori Particularly in planning
same
likp
the
dividends, it Commission involves the planning South La' galle street," member!
but no less, than
f.ra
of the Midwest Stock Exchange
or
31
Dividend
as to
$660,594,
c
Common Stock
which
(Special to the financial chronicle)
common
.
the
monthf
matters
Commission
or
nmr'Arn
receive more,
.
Un-
on
few
-a
the
us.
been
Corporation
Hood Control
t
last
g at M
m
interesting legal
Halscy, Stuart Adds
oan
outstanding at March 31
ex-
Commission
r
a
i?i
l0iai snares
Secretary
i. c. Reynolds,
discussed
speaking only for myself and
development.
hydroelectric
Ce-mnarable earnings in 19o6 were
r
concrete
have expressed views
my
income outstanding, is largely in the hands
Another important function perequal to of the public. It has full voting formed
by the Federal Power
$788,830,
the
controversial matter that they ar
ap-
$0.29%
neces-
this time. In closing, I wish tc
make it clear that insofar as 1
_
stork'
the
mav
of
8-1-57
Fund Series
thr
Congress, and I'arr
precluded from discussing them at
dis-
$1.25
$25 par value
4%% Sinking
pears
that such an amendment
company's would further encourage upstream
the
2 115 500
Lne
no
8-1-57
5% Series
Preferred Stock,
it
of
Federal Projects and other utility the other four members
customers>
policy. The class A, about
jhe
make
Per
Share
Preferred Stock,
during my tenure ir.
now pending eithet be-
are
Court5?
tinction
'
This
enlarged
office
fore
to
Rate
Payable
arisen
re—
equitable
only
Net
budget.
to
recent
a
Date
the
which
have
have
I
of
most
have
interests. Since the cost of such
VWmen{s> like other utility^ex-
enviable
equity since expansion is
expansion is
coming
from retained earnings.
.
and
projects
Federal
to
role
with
to
Commission
for
United
seem
on
uon
epipjnga also increased in tie fiisl.
in
require
and
fortunately
States
the
by
of
some
problems which confront
penseSj is paid from revenues obtained from consumers, it would
y
Pei hap^ even more encouragi lg.
advertising
the
unc]cr jq) and yet avoiding dilu-
period :of
-
to
points
of the many
some
the
to
to
side. I would much
have illustrated some
to
my
amples
that the Federal Power
this
record
follows:
as
no
resources
0f
con-
of about 5% (50 cents annual div-
$6,-
initial
1956.
in
are
were
compared
has
of
July 15, 1957,
other
of
payable
stockholders
the "dry"
on
required
Stock
corporation,
has
development of
prefer
not
Commission
amended
be
the
Preferred
on
$100 par value
of
the
and
ld57. the
3,
regular quarterly dividends
sarily been somewhat general and
American Stock ments constructed by non-Federal
on
In
July
Board of Directors declared
Federal
country. My discussion has
law the Fed-
is
rate
hydroelectric
suiting from headwater imorove-
A
On
has
only
authorit:
schedules or t'c
with
resume
piays in
basin.
idend
$32,-
quarter
cuarter
(listed
class
Factor
to
attribut-
are
recommended
benefits
Max
DIVIDEND NOTICE
attempted in this to give
brief
mission
facilities constructed Dy
developers.
Since
the
ments
,
by 58%
up
Act
position of receiving a good yield
I ece
gag
a yigia
incieascd
A^tc Quar*ter that
end'cd March 31,
m
668.196
of
^ !?ntr-hl!w Exchange);-
•
fire.
stock
....
,
' Holders
PACIFIC
duties of the Federal Power Com-
Federal
-
sistently
featured.,
benefits
Government
1951
The Security I Like Best
the
agencies.
power
i have
against
improvement
river
Congress
just
by
•
FINANCE CORPORATION
Commission
Commission
modify
a
to pay for benefits received from
non
not
downstream
charged
Under the present
:
which
the
to
submitted
veto
to
These
»e.
eral
Continued from page 2
authority
granted
marketing
words, the
for
equitable
an
headwater
up^U'tam
meted,
as
depreciation
particular
_
,
encourage com-
justification
This
been
studies and determinahecome^more complex as
additional
pro]ectS^a^e, added to a
sort.
the
NOTICES
• ••«••«»•
initiate changes,
anything of
run
of
con-
with respect to the sale of power
produced at other Federal proj-
provision
a
which
the
as
principal
a
some
ules
a
is
DIVIDEND
Engineers. However, the Commission
has
no
such
general
authority
river basin and in many
is an important factor
a
the
-
securities business. L. Jerome
Kesselman
provides merely for the confirmation and approval of rate sched-
and
r
a
Wall
engage
Power
given
produced by projects
structed
by the Corps
of
part
of the annual interest, maintenance
wonder, though, if such "stabilizers"
Federal
been
power
a
designed to
one
Commission
Douglas.
Senator mentions
reim-
beneficiary is determined by the
warning.
We
the
by each non-Federal
glad to commend Senator Douglas for his
are
owner
upstream
an
1944,
construction of upstream storage,
The annual charge to be paid
reces¬
in
Fort
and
ects.
in
79
at
Street, New York City to
general responsibility for the approval of rates for the sale of
uostream
This
requires
instances
There is, we suspect, a good deal of "blind opti¬
mism" about "built-in" stabilizers and the like.
.
the
Bonneville
ment of
by year."
year
from
the
Commission has
of the
project
of
owner
that
of
plete and comprehensive develop-
that their
means
is
10(f)
Act
is
As
Co., Inc., has been
offices
be added at less
may
sharing of costs
in proportion to benefits received
has expanded and
the price level has risen, the failure of social se¬
curity and unemployment compensation payments
keep
reservoirs
requires that the
the
mved
which
the economy
to
storage
improvement.
facts, instruments and institu¬
H.
with
Peck Acts and the Flood Control
regulation provided at the headwater
some
disastrous
Under
impor-
storage project for power benefits
budget
hedge against
recession, these
is
conditions
more
downstream
a
burse
that
true
of
Act which
the size of the defense
alone
ing facilities
the continued construe-
provision in Section
security, and fiscal and mone¬
tary policies properly applied,
and while
license
becoming
with
tion
by way of un¬
employment insurance, social
the
is
tant
declines
formed
cost in the future.
of
One
which
been
Forms Kesselman Co.
loads.
"While it is true that much
has
45
firm.
their
only historical.
now
page
Apportioning Hydroelectric Costs
Between Taxpayers and Consumers
a
stabilizers
from
Kesselman &
blind optimism
major economic problems have been
that
sclved,
Continued
n
47
Chronicle
The Commercial and Financial
43
.
.
Thursday, July 11, 1957
.
(208)
fact that
BUSINESS BUZZ
on
does
Global Lending
•
•
they were discontinued
mean
that
the plan
not
would not work today.
Finance
International
ration
BeVind- the-Scene Interpretations
totaling
/f
Capital
from the Nation'#
jl
trialized
been
WASHINGTON,
C.—The
D.
Department appropria¬
tion bill that will be sent to the
Defense
While House for the
President's
signature is likely to
total about
$34,000,000,000.
appropria¬
tion will affect the economy and
the pocketbooks of the nation
and its people. Never in the his¬
tory of the world have there
been such fast changes in mili¬
tremendous
The
tary weapons.
being
are
will
aircraft
Manned
slowly.
fighter and
bomber inventories in the im¬
in
continue
mediate
knows
if
both
will
ever,
build
longer
no
one
country,
this
when
now
No
ahead.
years
manned aircraft.
House-passed
The Senate- and
Defense appro¬
the
of
versions
priation bills are in conference
where the differences will be
ironed out. The Senate measure
provides for $34,534,229,000 or
$971,504,000
more
than the
House approved and $1,593,771,000 under President Eisenhow¬
er's
recommendation to
budget
bill,
Senate-nassed
The
in¬
appropria¬
tion, that went to conference
included
these provisions: Air
the
creasing
House
various
A
and
Wilson
the Joint Chiefs
of Staff.
of weapons ap¬
building
likely to go considerably
in the opinion of both
industry and government peo¬
ple. A World War II submarine
cost about $5,000,000.
Today a
nuclear power submarine costs
about $45,000,000.
A five-inch
pears
plexity of the weapons. Aiitraft
deliveries
cline
continue
will
missiles
as
inventories,
de¬
into
come
to
the
according to testi¬
mony.
antimissile
The
missile
is
a
and devel¬
opment project and is included
in the fiscal 1958 program. The
research
their
Air Force, Army and
tractors
are
working
con¬
it.
The
on
Army plans to spend the lavgest
of
number
velopment
its research
dollars
and de¬
this
on
pro¬
The
in¬
Pentagon higher-ups
sist that it is inevitable that an¬
World
other
atomic
War
be
would
they
Therefore,
war.
an
maintain that it is necessary that
atomic weapons must be
At the
arsenals.
our
that
contend
they
time
would
be
foolhardy for the United States
to
its
down
lay
conventional
and
fighter
about $120,000
cost
knees
planes
each. Comparable fighter
including
today,
cost
planes
parts,
each.
spare
about $1,200,000
Navy's Weapons Program
Navy
in
the
new
School Aid Bill Doubtful
There appears
of passage
pending
at this session of the
Alaska
and
Hawaii
statehood
bills.
mendous
pressure
White House,
Despite
from
the
the school aid bill
remains in doubt.
ern
tre¬
of
members
Many South¬
Congress, who
are
afraid
is going to place its high¬
priority in connection with
the
proposed development of a
missile,
ballistic
antisub¬
marine warfare and fleet air de¬
fense. The fleet ballistic missile
be suitable for
will
on
both
marines
fleet
aid
the
that
would
subsequent control of the
as
depositories
Postal
1956.
will
could
keep
Rights
prolong Congressional ad¬
journment,
time
in
is
There
in
Congress as a result of some of
the
sweeping Supreme Court
decisions.
At
no
such
an
uproar,
caused by
President Roosevelt's
ill-fated
efforts
to
enlarge
criticism is coming from all po¬
litical faiths in Congress.
the
Despite
black-robed
nine
and
discussion
their
curb
outcries
today. The rate of de¬
deposits for the past
against
justices
judicial
powers,
to
seems
likely to
Postal
Savings
this
pass
A
bill
to
of
Wane
the
been,
223,000
and 229,000.
of the postal
by simple at¬
going out
business
savings
trition.
Like weapons of warfare and
everything
nearly
that
the
housewife buys, the cost of pub¬
lic education is costing more. As
result there is
cussion,
increasing dis¬
and
school,
pro
12-month
about a
four-quarter
as
a
There
of
the
that
With
School
the
other
school
a
Department
of
months
nine.
in the
summer
states
are
increased
of
the
various
looking into possible
also
months would be
heating
in
the
"s
cold
winter
installation
nuclear-powered
and
surface
ships.
air defense the Navy
emphasize
the
sub¬
In
will
development
of
Jong-range search and acquisi¬
tion radars, controlling mecha¬
nisms, and data computers.
Pirating
Public education is one of the
biggest
and
has
inflated demand for
an
engineers, and has been highly
unfair to companies without de¬
[This column is intended to re
fleet the "behind the scene" inter¬
pretation from the nation's Capital
or
not
the
oarents
stand
will
the "Chronicle's"
Each
tion
has
state
problems.
instances
four-quarter
evidence
views.]
is
not
Corpora¬
securities
Securities
in
engaging
a
Street, New York City. Franklyn
Steinberg is
a
principal.
H. L. Wittow Opens
Colo.
DENVER,
Herbert L
—
Wittow is engaging in a
business
from offices
Street
under
of Wittow &
of
its
securities
at 22
Jack¬
firm
name
the
Company.
Join F. I. du Pont
SARASOTA,
the
R
now
affiliated
with Francis I
are
where
Fla. —Gordon
Beath and Frederic A. Williamsor
own
There
staggered
tried.
is
business from offices at 92 Liberty
are
been
own
Plymouth Sees. Corp.
Plymouth
for any
the cur¬
system remains to be de¬
several
coincide with
and may or may not
in the land.
businesses
radical departure from
has
hearings.
engineers
personnel
of
technical
created
son
months.
peculiar
pre¬
determination
final
a
other
instead of
maintain
year
expensive, if
more
cided.
Educa¬
in
that the cost of air conditioning
Health,
studies
each
Advocates
the children
population
involved
separate school. At
they point out
that
fewer
teachers would be
needed
if the teachers taught
time,
rapid rate, the
Meantime,
expense
a
same
rent
increasing at
cost.
Postal
Term?
make
about the future
Proponents
physical plant
equipment and libraries
new
the
no
Davis
C.
James
and his
subcommittee colleagues would
plan.
the
operating
as
new
are
arguments on both
are
is there, and it would save buy¬
school term, so
12-Month
may conduct a
a 12-month school
their findings could
guide for other states.
and
serve
11
there
1?
Carolina
year,
con,
that the existing
school plants can be used.
work
calendar
joint study of
ing
said
He
strong
fense contracts.
South
and
Many of the post offices have
tion and Welfare is making
year.
provide for the dis¬
continuance
has
228,000,
respectively,
liminary
on
period
would
Virginia, North Carolina and
contend
no
legislation affecting the tribunal
pertaining to defense con¬
Chairman
a
year.
sides
same
on
staggered
It would
each
during
Whether
proposals
of
longer
cline in the number of accounts
the
would operate
teachers
the
mean
has been in excess
of $200,000,000 a year.
The de¬
for
It means
basis with a
system of vacations.
years
a
(called court-packing), has there
been such sharp criticism of the
Nation's highest tribunal.
The
have
depositors has
decreased from more than 4,000,000 in 1947 to less than 2,in
schools
the
does
term
pupils would go to
•school the year-round.
The number of
time since 1937,
was
rates.
deposits
the
mean
yearly
with
dropped to $2,000,000,000 in 1956.
been
criticism
marked
interest
then
Since
expected some¬
now
August.
deposits
savings
low
of
period
three
the
June 30,
$3,400,000,000 when there was a
cline
Supreme Court on Griddle
on
reached their peak in 1947
500,000
schools.
not
in
utiliza¬
on manpower
(Democrat of Georgia)
12-month school
A
post offices in the
country, only 7,622 were desig¬
nated
of their
use
plants.
Of the 40,000
to be no chance
longer year-round
deposits are insured up to
system
decisive.
du
Pont
&
Co.,
1286 North Palrr:
Avenue.
the
However,
The
TRADING MARKETS
Sav¬
ings System, established in 1910,
is -still
pending
on
the
House
Botany Mills
A. S.
A member of
Indian Head
Service Committee said that ef¬
forts
will
measure
be
up on
made
to
get
the
the floor.
the
past 47 years have nullified
the
Morgan Engineering
National Co.
Carl Marks
importance of postal savings
in the rural sections of the United
States.
fice
Records of the Post
Department
in
Of¬
connection
with the Postal Savings System
for 1956 show that most of the
deposits 1
the
are
concentrated
in
large cities where banking
facilities are readily available
Mills
United States Envelope
maSZX.,
Expansion cf banking and im¬
provement of transportation in
Campbell Co. Com.
Fashion Park
the House Post Office and Civil
fiscal
est
fleet
and
$10,000.
that
be
may
indications that tax
money is being used to subsidize
the
pirating of engineers for
government defense contracts.
However, the attorney said that
for
"
"Doople's Employment Agency?—I know I asked
a
Secretary with plenty of 'Get Up and Go' But
that
helped to bring the Japanese to
advanced
remains in doubt.
year
tion
Civil
and
said
hearings
offing
tracts.
calendar, but its fate this session
weapons.
The
additional
the
for
counsel
Committee
Service
the
kept in
same
it
others.
Postoffice
House
single "Terrier" missile,
including
spares,
today
costs
about $62,000. The Navy's most
the
gram.
and
pipeline,
gas
Engineer Pirating
S100. A
when there
promising
of
for the
$14,000,000
a
chief
The
shell in World War II cost about
spotlight of
the Senate for days. A filibuster
thing is certain—the cost
of weapons
is soaring all the
time along with increased com¬
dozens
of
higher,
The controversial Civil
One
in¬
steel
for
$300,000,000
Pakistan
bill
High Cost of Defense
for
$75,000,000
large steel mill; Aus¬
a
dustry development; Indian Iron
Secretary
E.
Charles
include:
loans
the
and Steel Company $220,000,000;
mean
Defense
of
India
building
tralia
pertinent testimony is in¬
cluded in those volumes.
This
of
power
$120,000,000 for power develop¬
dealing with United States ver¬
sus
Soviet
Russia
air power.
includes testimony by
few
ment;
submarine warfare.
The high cost
the
said
spokesman
Brazil Traction Light and Power
increased cargo lift:
be utilized in anti¬
and
may
ICA
general services.
submarines. Navy
battlefield sur¬
veillance, airborne early warn¬
ing,
will be
private industry
plants, steel mills, railroads, pa¬
per mills,
a gas pipeline, and
provide
anil
Most of the remaining
included funds for
loans
would like to get the assistance,
Some
An
r*
are
Force
$16,384,093,000, Navy
$10,054,225,000, Army $7,397,156,000, Interservice
Activities
$682,375,000, and Office of Sec¬
retary of Defense $16,350,000.
Behind the appropriation were
2,352 pages of testimony in the
House of Representatives. These
included
extensive
hearings
,v
■
another
say
private
to
in those countries.
Prvfte
promisingproject is the remotely con¬
trolled (drone) helicopter which
experts
has
directly
through
spent
effective detection and destruc¬
tion of enemy
this
e s.
governments,
1
t
PRESIDENT
being developed to obtain more
their
Congress.
based,
carrier
be
to
could
incorpo¬
rated into the aircraft inventory
Missiles
both
made
Of
billion
i
r
$1
$2.1 billion, made directly to the
being
is
u n
t
co u n
industry.
de¬
particular¬
ly directed toward the anti-submarine warfare field. Testimony
shows that a new conventional
aircraft and a new helicopter,
Navy's research and
The
velopment
of
about
amount
billion for
d er-indus-
$3.1
about
development
lA
JL
Jl m
Corpo¬
made loans
thus far has
FOREIGN
20 BROAD
SECURITIES
STREET
HANOVER 2-0050
_
•
&
Co Inc. j
Riverside Cement
Flagg Utica
SPECIALISTS
NEW YORK 5,
LERNER & GO.
N. Y.
TELETYPE NY
1-971
Investment
Securities
10 Post Office Square,
Telephone
HUbbard 2-1990
Boston 9, Mass.
Teletype
RC CO
@FedFRASER