Full text of Commercial and Financial Chronicle : July 12, 1956, Vol. 184, No. 5550

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O NiiV'SiRbil K V
OF MICHIGAN

ESTABLISHED 1S39

Beg. V. 8. Pat. Office

Volume 184

Number 5550

New York17,

Price 40

N. Y., Thursday, July 12, 1956

Cents

Copy

EDITORIAL

Monetary Showdown

I Both political parties, many
and many politically ambitious

Output, Steel and Inflation

Administrations r'
individuals have'

initiated antitrust suits in election years ami, for
that pxatter, at other times with the expectation;

?
'

at least/the

By SUMNER H. SLIGHTER*

By DR. MELCHIOR PALYI

Lamont University. Professor, Harvard University

: •

Barring a U. S. recession and denial of U. S. foreign
aid, Internationally known economist expects a further T
European credit tightening,- and recommends that such
a measure go far enough to act on wages and domestic
consumption. Finds the < financial crisis developing <
underneath the European boom is composed of:various
governmental control and welfare measures, unceasing
wage-price spiral, record profits, over-full employment,
over-balanced budgets, and never so many TreasuryCentral Bank predictions of impending catastrophe.
Avers the incongruous abandonment of Keynesian cheap
money is only an ineffectual start, achieving little more
than irritation, and that under these conditions of hyper*
trophy even the gold standard would not be a panacea
unless credit were limited to "genuine savings."

Outstanding Economist believes ^ant-equipment oatlays will continue—^-thus, not precipitating a recession—
until other forms of spending improve. Dr. Slichter finds

hope, of attracting votes thereby. '
it is hardly surprising, therefore, that the Eisen- /;
business> planning today removes investment spending
hower Administration,, repeatedly
accused ;• of
:
being a "big business" regime, should have its ; ;as ah important business cycle. Cause; does not expect
eyes on General Motors at this time—General*; ^ Steel strike to. produce more than a temporary business
drop or rise in unemployment; disagrees with claim of
Motors which for so many discontented persons \
is almost a symbol for bigness and dominance.
halting long inflation trend, in pointing, out sound fiscal
;
and credit .policies do not assure price stability; forei Should present plans com.e i to fruition we shall ;
:
sees'creeping, not galloping, inflation; and, while de¬
have here another of those costly and long drawn- i
crying even \%l price Inflation, does not anticipate
out proceedings which more often than not prove
into commodities, - stocks, or real estate.
nothing and bring no benefit te any one. If it •
were to end, as so many do, in a consent decree,
The outstanding feature of the economy at the present
it will not even supply enlightenment as to what
time is the large and growing spending for industrial
is and what is not permitted under court inter¬
V;. '
:
plant and equipment in the. face,of ; * Since 1952 or so, Western Europe has been enjoying
pretations of the anti-monopoly laws of the, land.
no increases m retail sales, very small
what amounts tQ the greatest boom in its history. It is,
It is quite certain that not enough time will ;
; increases in total outlays on conof course, a "sponsored" prosperity,
sumption, a drop in spending on resgovernments being the Number One
elapse between now and. the voting next Novein- :.
ideptial construction, sand a rather
spenders
and
investors
(even in
her for any. one, either official or- unofficial; tq
.slow- rise; in governmen%outiays fop
or

Germany, where a $1 billion "take"
being annually; distributed among
pressure groups, on top of dis¬

;

determine

or even

to make

informed guess M

■*

goods; and services.

to whether there is the

what the
The

the

move on

any,

V billion.

the

counted upon

courts

this

case

could

to determine whether growth to

at the annual rate'of $1.5

gigantic size through business efficiency and
energetic management is or is not unlawful in
?
;
;
Continued on page 26

•

)

•

annual

sales,

rate

billion between the third and

Continued,

qn page

An address by Dr. Slichter before the Economics-in-Action
the University of Wisconsin, July 3, 1956.

SECURITIES

$34.77

NOW IN

REGISTRATION

porate securities are'afforded

and potential

dealers

Retail

the other
hand," were no; greater in May, 1956
v. (after correction for seasonal adjustSumner H. Slichter
; ment.) than in September, 1955, or
;
"; —V >"
than any month in the last quarter Of
1956. Total expenditures for consumption! increased only

decision

*•

billion to

hope, however,, to make political hay- out of the
proceeding—and if so, they will,; of course, be
quite satisfied. ,t?
; 1 ?•• •:^■ if'.V'V;...v,;;
If the investigations; the arguments and the

quarter of 1955 | the

and the second quarter of 1956, ex¬
penditures of non-agricultural enter¬
prises on plant and equipment increased from an annual rate of $29.45

who are really behind thisv
part of the Administration doubtless.

politicians, if

Between the third

slightest basis in fact for
Administration is now about to begin.

our

undertakings in

bursing 20-odd
tional,

per

cent of the

na¬

income

for social services).
countries, the boom is still
being protected by foreign exchange
restrictions,
quantitative
import
barriers
against dollar goods, by
tariffs; export subsidies, and - deficit
financing. The tricks of welfarist
dirigism are in turn supported by
In

most'

American

aid

which

still

forth¬
Dr.

coming directly and by indirection.
Many industries walk on. artificial

Meichlor Palyi

crutches; some are depressed at that, such as cotton
manufacturing, coal, the farm, etc. Even so, feverish

Group

Continued

Underwriters, dealers and investors in cor¬
now registered with the SEC
"Securities in Registration" Section, starting on page 38.

page

—

complete picture of issues

State, Municipal

tn
11

and

D. S. Government,
State and

Securities telephone;

UNDERWRITERS

Municipal

BROKERS

* -

HAnover 2-3700

STATE

and

DEALERS

and

MUNICIPAL

RAILROAD

■''

;

BONDS

LATEST

•

PUBLIC
&

CORN EXCHANGE

...

<••»»%

«•»

•

;

Bonds and Notes

•

BOND DEPARTMENT

FOREIGN

ARE NOW AVAILABLE
ON

SECURITIES

REQUEST

THE

THE FIRST NATIONAL CITY BANK

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Burnham

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and

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•

Harris, Upham & C9

OF NEW YORK

Company

MEMBERS NEW YORK AND AMERICAN STOCK EXCHANGES

Bond

014-1400

Members

New York

120 BROADWAY,

Dept. Teletype: NY 1-708

Stock

Chase Manhattan

Exchange

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TELKTYPK NY !-22«2

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ESTABLISHED

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.

Members
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Analysis
our

Canadian Exchanges At Regular Rates

NEW YORK 4, N.

COMPANY

DIRECT WIRES TO MONTREAL AND

Goodbody
MEMBERS

BRIDGEPORT

•

PERTH AMBOY

upon

request to

Unlisted Trading Dept.
4

CANADIAN DEPARTMENT

Teletype NY 1-2270

25 BROAD STREET

Doniger, Inc.

Commission Orders Executed On All

American Stock Exchange

DALLAS

McGregor-

CANADIAN

SECURITIES

INSURANCE STOCKS

CANADIAN

•

£>CUthiCe4t

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"POCKET GUIDE FOR

UTILITY

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FIRST

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30 BROAD ST.,

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COPIES OF OUR

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TORONTO

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N,EW YORK STOCK EXCHANGE

115 BROADWAY
NEW YORK

GRPORAXIOTI

1 NORTH LA SALLE ST.

CHICAGO

IRAHAUPT&CO.
Members New

York Stock Exchange

end other Principal

Exchanges

111 Broadway, N.
40

Exchange Place, New York 5, N.Y.

Teletype NY

if702-3

WHitehall 4-8161

WOrth 4-6000
Boston

Y. 6

Teletype NY 1-2708

Telephone:. Enterprise

1820

1 tie commercial ana t mancial

(166)

-s

;

The Security I Like Best

> t

Dealers only

For Banks, Brokers,

A continuous forum in which, each

Expand 'Jltf-IHrktl

participate and give their

reasons

they to be regarded,

•re

Why not take advantage of our
nationwide network of private

as an

port profits of

By IRVING KOMANOFF

Elliott

we're equipped to
markets faster through
large trading facilities.
country,

Company

Within

New York Hanseatic

Stock

will

1920

BOSTON

York 5

PHILADELPHIA

SAN FRANCISCO

•

pany

SCRIP

price
time
tered

Since 1917

•

•'

*■'

Members

stock

American

120

Yet

that

Exchange

most
moat

...

which will
one
ol the

year

spectacular

nrovpment, of
New

the

earnings

anv

York

pears

Exchange.

psychology,

have

overlooked .what apto be an unusual bar-

the

get

impression

The

ud'
u

sum
gum

earnings

are

sharp

Company is no mere flyby-night enterprise.
Quite the
contrary. It is an old established

trated

Camp Manufacturing

equipment.

Commonwealth Natural Gas
Life Insurance Co. of Va.

STRADER, TAYLOR & CO., Inc.
Lynchburg, Va.
LD 39

TWX

Its

can

ment; the balance, general appa¬
ratus and
supplies. ; Elliott sells
to public utilities (its
biggest sin¬
gle customer), chemical and oil
The

companies.
LY

output

than

1.0

highly

name

respected

out.

Trading Markets

Botany Mills

Elliott

obvious

description

Carlisle
Dover
E. J.

from

its

duction

capital

fWene«iCompomi
*

Tel. HAnover 2-4850

goods.

Dro-

even

industries

which

supplies

further, since the
this

company

almost all engaged in
expansion programs.

are

lofip-term

Elliott Company is importantly
connected
with
the
expanding
atomic

energy industry.
It has
furnished all the
auxiliary motors
for

NATIONAL
•f
I

BANK

INDIA, LIMITED

Bankers to the Government
Kenya Colony and
Head

Office:

West

End

Uganda

Bishopsgate,

London, E. C.
(London)

Branch;

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

Burma, Aden, Kenya,
Tanganyika,
Uganda, Zanzibar, and Somaliland Protectorate.
Authorized Capital
£4,562,500

Paid-Up
Reserve
The Bank

Capital

£2,851,562
£3,104,687

Fund
conducts

description of
banking and exchange business.
Trusteeships and Executorships
also

every

undertaken

scarcely

are

have

one

of the

largest

the country—the

any

power plants
Joppa Steam-

fS'lPlant- 77. no* the power
supplying
about three-eighths of

hood

great stocks

sion-

ioRUriJlg

The

ful;

1955).
stock

operating margins. For the year
1956, Elliott Company should re-

my
as

advise

their

since

This
*

and

other

f..

exchanges

Cotton

Exchange Bldg.

NEW YORK 4, N. Y.
Detroit

•

Pittsburgh

•

Coral Gables

•

Hollywood, Fla.

Beverly Hills, CaL

Geneva, Switzerland

Amsterdam, Holland

LAMB0RN & CO., Inc.
.99

WALL

STREET

NEW YORK 5, N. Y.

the

SUGAR
Raw

—

Refined

—

Liquid

Exports—/ mparts—Futures

cornerstone
T r?o no**

clients,

DIgby 4-2727

sales

the

peak,

corresponding

but

several

these

other

turing links together

splendid

times

ratios

market

tremendous

Minnesota

great

and

factors;

many

the

peak

Mining & Manufac-

i-M

600-7^0%

1929

astonishes

growth

bavo

other "financial

newcomers,

of ruij

man-"

ment-

Mining
a

than

better

stocks.

Most

"3M" financial factors show

long

featured

In
the

brand of cellulose tape

responding correlation.
A

cor¬

accepted

roost

years, the
"Scotch" label

has been applied to reflective ma-

considered,
common

stock,

istics

All things
that

believe

for 42 Years

Exchange,

success

were

than

other;

any

trical tape and insulation, roofing

could recommend only one

granules, abrasives, etc.

this

each

National Quotation Boreaa
incorporated

suddenly decreed

that

are

Quotation Services

of the salient character¬

diversified products include elecThese

this

Over-the-Counter

currently at 72 Vz

the New Yojrlj: Stock

and

bright future is best prophe¬

sied by a brilliant past.

SAVM6*

position

;

profitse,nbutewa! necessary "to e°f- *erials and t0 aound taPe' °£her
substantial improvement in

price
estimation

Manufacturing gives it

has

Inc.
Trade

itself

present

coroorationc,

their

;in

has

.maintained
-rawCarroll Tillman

feet

The

Broadly speaking,

widely

expanded, modernized and moved,

structure

management with a good Une o£
f.r0
invariably leads to contlnu?us and Profitable develop-

Board

can; be

stock

reduced »substantially

was

late

„

Exchange,

is beyond reproach (out¬

solid

Minnesota

Exchange

Orleans Cotton Exchange

standing debt totals onlv »bout
$10 million, and the 4% preferred

of us> and in recent

the

healthy

success

common

financial

company

Its

was

rate of

prime characteristic.!

igreatest

r? e ? \f !'

®"en
success-

Chicago
New

Exchange

Cotton

Commodity

years

concerned, dividend increases
(nine in the last 10 years)'and

(Creased

these,

division,
Division,

Stock
Stock

York

New

•

P™i-„

of 1954 and ""Scotch"
important

York

American

lat.market low points,

convert bo r-

even

Members
New
.

Chicago

and :this
the

(the pi"oduct most famiUar

most

can

1856

[make additional vearly purchases!

circumstances3

JJies

Bankers

H. Hentz & Co.

relationship to sales (1955 show¬

£ghieJtponZT/nsuZ1
Crocker-Wheeler

ex¬

figures.

hesitate

in£ series of basic products.

Commis-

,?<

Established

that "3M"

.item for future fortunes.

concluer al"
I"ost an.v

Branches

111 Broadway,N.Y.6 COrtlandt 7-5680

mightily in

grow

•^akes it suitable

!manaSement and an ever-expand-

Energy

of- the

will

1897

—

Investment

Miami Beach

Atomic

1955

stock

man-

Tokyo

products,

Net income has shown

cor-

requirements of the Paducah plant'
the

for older

rather certain

taxes),

great

a2ement

Ofjice

compounded annually; man¬

far

,mana?ements-

that

benefit

products, constantly

stock splits (three since 1945) will
also undoubtedly continue
as
a

few.

Established
Home

agement expects a 13.5% increase
in sales this year, and has fore¬
cast that I960 sales will be 163%

prosper despite poor management,

management expects this backlog
to increase

1929

activities

well situated

fact, its current backlog
of
orders
is.
approximately $30
million,
or - almost
double
the
backlog, of a year ago. Moreover,

Riverside Cement B

ESTABLISHED

above

matter of

Corp.

Korvette, Inc.

It Wall St., N. Y.

the

lies

mapped

during the past
have pushed forward at

corporate

from the current boom in the

Corp.

Securities Co., Ltd.
Brokers

While, there-may be

;

purchased

1950)

well

can

expected

write

Yamaichi

possible

until

Sales

Call

economy.

information

current

in these

been

future years.

16%

For

generally expected to continue. As

that do aot

producing equipment.

sales, earnings, and dividends

Minnesota Mining & Mfg. Co.

there

all

started

had

uses

improved Japanese

ing
more
than
12%
of
sales
brought down to net income after

Registered Investment Advisor '
"The Tillman Survey"
rv>.
Providence, R. I.
v

generators, electric motors
sizes, and other heat and

success

the gains

held

that

New

make

facturer of steam turbines, electric

power

and

panding,

Elliott porations here and there which!
manu-

stock

future

it in 1950 at 113.0 p"d

the stock

up-

CARROLL TILLMAN

broken down roughly into three
categories: 40%, power producing
material; 30%, electrical equip¬

•

huge
(I first

six years

invested in Elliott Company common
stock
and
are
currently

stockholders.

;

the

advanced

the

remaining at practically
stationary levels for three years
now appear to
be stirring due

stress¬
that can

processes

company

STOCKS

concen¬

market action since that time has

favorable,
have

most

Ahead

recommend

for inCreased profits over the next
seems

and

offices

after

particularly

patented.

this

trend,

years

ag¬

extensions of the present

ing items
be

properly

are

branch

our

IAPANESE

uses.

brainy management

product dine,

its financial position
greatly improved, and its outlook

few

and

activities

stock
sloCK

common

every-day;

basic situation,

cannot

repetitive prod¬
low price, and has

Ala.

this company to satisfying pin¬
nacles from era to era. Research

that

of m[oit Company at about 22 %
j00ks like a most unusual value.

and

NY 1-1557

Mobile, Ala.

such

tape

has carried the financial affairs of

any

current dividend rate of $1.
x;

It is

uct, sells at

the

of
of

Exchange
Exchange

Stock

New Orleans, La. - Birmingham,
Direct wires

"Scotch"

consumable

thousands

manufacturer of power generating

;

familiar

be reused.

wr^er ai1(| his famiiy

Elliott

Bassett Furniture Industries

ex¬

serious consideration will be given
sometimje thigrfall to raising its

gam.

American Furniture

The

company,

dividend record,
From my talks with manage-

imim—

stock listed on

Stock

limit

completely

manufactured with the utmost

in skill and precision.

working capital
favorable basis. Not to

very

ward

Trading Interest in

the

very

year

YelKrenm chips an a sky
tlicii* frenziedrits
reaching for blue
is

for

one

step

company on

stock

the

TEL. REctor 2-7815

are

additional

ment

company

this

for

report

exactly

Here

This

Company has one
longest dividend records

com-

common

BROADWAY, NEW YORK 5

new

the New York Stock
sells at almost the lowest Exchange. It may come as a surin a decade, at the very pPse, tjiat a st°ck which sells at
when its earnings have en- about $22 per share has paid divia
period of incredible im- dends each year since 1905
a 50stock of

common

Stock Exchange

York

New

non-seasonal products,
subject to style change, and

gressive

recently
15-year loan of

liott

1. Komanoff

of Elliott Company.

not

has

Company

Stock

York

HAnover 2-0700

relatively

rate

American

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

Given

current

New

Members

be overlooked is the fact that El¬

the situation in the
M

Members

could

an even

six,; times

vide

Street

provement.

l^C'PONNELL&rO.

1957

■

•

Steiner, Rouse & Co!

when it
share. Its

utterly

very

Wall

for

(Page

isting short-term loans and pro¬

is indeed

when the

per

price

since it will be able to retire

the

rare
occurrence
in

Specialists in

beneficial

1955.
It

1945,

at almost $40

negotiated a
$10 million.

period

same

RIGHTS

year' since

Elliott

year at about
$1.50pershare,
as against only

has

common

current

earnings.,

six

9 cents for

Principal Cities

Wires

its

about

221/2,

first

Co.—Carroll Tillman, Reg¬
Investment Advisor,

Providence, R. I.

higher rate than at
a stock whose
earnings are in a sharp upward
trend, and is available at only

months of this

CHICAGO

•

Company

above

run

report
for

the

Exchange

ing

present. Yet herd is

earnings

Teletype NY 1-40

WOrth 4-2300

Private

about

Member

Stock

American

sold

earnings

Bought—Sold—Quoted

istered
,

this

Ex¬

change

Louisiana Securities

Minnesota Mining & Manufactur¬

against $1.37

in the "Commercial

York

New

Corporation

Financial Chronicle,"-Elliott

Company, currently selling on

Alabama &

Company—Irving Koman¬
Herzfeld & Stern, New
York City. (Page 2)
off,

cu«;ent Pri<re o£, $22 c°™pares
With ataok value of $47 per
sh:>re- "s outlook and backlog of
the ?IT fr?, wou£<? seem to indicate
that its

after

days

Week's

Participants and

Elliott

minimum of $3.50

share,

per

Elliott

sold

few

article appears
and

120 Broadway, New

every

find your

Established

Members, New York Stock Exchange,
American Stock Exchange and
Chicago Board of Trade

Specializing in serving banks,
brokers and dealers throughout

not

are

lnursday, July 12, 1956

Their Selections

particular security,

intended

be, nor
offer to sell the securities discussed.)

Herzfeld & Stern, New York City

you're looking for
better Over-the-Counter markets?
wires next time

Associate

for favoring

(The articles contained in this forum

Try "HANSEATIC"

our

week, a different group of experts
field from all sections of the country

fin the investment and advisory

Contacts

the

This

Forum

Chronicle

investment

Established 19 IS

advisor
46 Front Street

would

choice.

s|ock,

CHICAGO

NewYork4,N.Y.
SAN FRANCISOO

Volume

184

Number

5550

The Commercial and Financial Chronicle

(167)

More On Variable Annuities
Balance of statements

submitted at the

legislation
i

so-called variable annuities.

permit

INDEX
Articles and News

available for publication which were
Jersey Senate Committee hearing on1;,
State's insurance companies to sell»

New

Monetary Showdown

State

two

issue variable

Variable

Progressive
Will

Flintkote—Ira U:
Times

Business

particularly concerned with

the

welfare

erate

the

means.

man

mod¬

speak

frequently
on
personal finance to groups of
high school
;v
teachers,
women's
>

urns

the

American

Ev¬

the
Wurora

can

my
savings against
purchasing power due to

inflation?"

honest

answer

-this

question would be ''Avoid
savings accounts, government
•bonds, and fixed annuities." This
would

leave only individual
a diversified list of

stocks, organization of

in¬

ja mutual trust. I dislike giving
advice.

ideal

'the question would
:the purchase of
issued

answer

advise

their

job

well

Months "Ahead

General

Industrial
:

will

show

that

the

Current

group

able

retirement

Highlights
*

'■''

the

!____

constant

the

Hear!

Consumer

•

HAILE MINES

HYCON MFG.

Credit

Program
20

♦

Claims

the

Dollar

,V,'

.''"'t

•'

■<

■■

•

.'■.■■

J.F.Reilly&Co.,Inc.

Require
31

_____

-■

V-

(Boxed).

Broadway, New York 4

DIgby 4*4970

Teletype NY 1-4643

Bank of Boston

Outlook

for

Municipal Market in Balance
by Halsey, Stuart & Co

37
1956

Discussed

Botany Mills

and

the

spirit

the

As We See It

(Editorial)

annuity

the

its

value

decline,

Bank

letter

creation.

the

and

Insurance

Northwest Production*

Coming Events in the Investment FielcL

Three States Nat. Gas

Cover

Stocks....

Business Man's Bookshelf____

dollar

intention

Pacific Uranium

Regular Features

dollar, re-^

fixed

is executed

But

should

MATERIALS

Dangers in Widening Debt-Incohie Gap Cited
by First National

enjoyed" dur¬
are
expressed in

value

contract

STRATEGIC

■
r

dollars

mains

■

paid in to and
by the insurance company.

Hear!

For lack of bet¬

ing

Gibson__u__________________.

Study Argues That Foreign
Tighter Money Policy

"consumption

terms

LITHIUM CORP.
12

Richard B. Evans Terms Variable
Annuities Incompatible with
Life Insurance Principles..

terms, "consumption foregone"
during the accumulation period

out

INDUSTRIES
10

Progress—Henry H. Heimann___

and

Economic

—John L.

accumu¬
.

McLEAN

has only agreed

company

•

Equipment

r____

Alternative in the Steel Strike and the
Nation's Future
—Edwin J. Schlesinger_____<_

in¬

Dealer-Broker Investment Recommendations

vmo-

his life expectancy will enjoy less

Einzig: "Sabotaging Private Capitalism in Waging Economic

available

consumption during retirement

*Prospectus

request.

.__

;ment such contracts

are

favored few, i. e., to uni¬
versity professors through their
organization CREF.
'
;
a

than he gave up

during the

Cold

accur

From

War"

Singer, Bean

Washington Ahead of the News—Carlisle Bargeron

mulation period.

Indications of Current Business Activity

Mackie,

INC.

Decline
To my mind a variable annuity

Js only a device which makes it
possible to carry out the intentions
;of

fixed

annuity

"fixed annuity is

contract.

contractual

ar¬

rangement between
'tailed
.ance

annuitant, and an insurwhereby the for¬

company

mer

agrees

save

specified

of money during an accumu¬

sum

lation
funds

period

and

to the

over

vestment.
.

individual,

turn

the

company.for in¬

The company,

in turn,

agrees to return the savings to the
annuitant in instalments that shall

begin

with

his

retirement

and

•

continue

■live.

for
i

long

shall

It is understood that the annui¬
tant

will

receive

back

during his

retirement all of the funds he has
saved

plus the ^earnings on his
savings provided that he lives as

Value of

Dollar

Mutual

•

this

(figure

point I attach a chart
which shows that the

value of the dollar has declined in
44

remained constant in 11
years,
and risen slightly in 19
years of the past 75. At the end of
the 75-year period the dollar had
a

years,

value one-third of that which it
at the
beginning.
Further¬

had

it is not possible to find

more,

single

20-year

75 years

period

within

during which the

the

subsequent 20-year

This

means

value

the

Our Reporter

Prospective

dollar- has

The Market ,Y* and

contracting parties in every typi¬
cal fixed annuity contract made

The

Disappointments

the

over

Continued

Members New York Stock Exchange

TELETYPE N. Y. 1-5

•

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•

Published

Chicago

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ary

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by William
Company

the

post

Subscription

9576

Eng¬

WILLIAM

SEIBERT, Editor & Publisher
DANA

SEIBERT,

President

office

Every Thursday

(general

news

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and

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etc.).

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of exchange,

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made

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Wires to

DENYER

PHILADELPHIA

fluctuations in

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York

Direct

Monthly,

(Foreign postage extra.)

account

for

fundi.

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eign subscriptions an* «*"""-*i>!ement« mutt
oe

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the

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request

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and ad¬

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statistical issue — market quotation
corporation news, bank clearings,

New

March 8, 1879.

in
United
States, U.
Possessions,
Territories
and
Members
Pan-American Union, $60.00 per year;
Other

Thursday, July 12, 1956

*Prospectus

Dana

second-class matter Febru¬

York, N. Y., under the Act of

New York 7, N. Y.

2-9570

Smith.

1956

1942,

Subscriptions

HERBERT D.

Sulphur

Pan American Sulphur

♦Column not available this week.

plete
•

Gulf

You—By Wallace Streete*----?--—------ 16

The State of Trade and Industry

ST., NEW YORK 4, N. Y.

Boston

fail-

page

Spencer Trask & Co.

Murphy Corp.*

23 '

Security I Like Best

REctor

•

Offerings

Corner___

Washington and You

Albany

in the past seven decades.

PREFERRED STOCKS

TELEPHONE HAnover 24300

defeated the full intentions of the

WILLIAM

25 BROAD

Security

Los Angeles

Registration

Salesman's

_____.__j.____.

pe¬

Securities

Railroad Securities

Securities Now in

W ires

Philadelphia * Chicago

Governments___i___^____

Public Utility Securities

The

have specialized in

Direct

Reporter's Report

For many years we

Exchange PI., N.Y.

Teletype NY 1-1825 & 1-4844

—

Observations—A. Wilfred May________

Our

:_______

News About Banks and Bankers

that the decline

Funds

NSTA Notes
.

HA 2-0270

the

average

value of the dollar is as low

riod.

■

Relationship—Anthony Gaubis_____
*

YORK

the Industry's Burning Issues

WALL STREET; NEW

Telephone: WHitehall 4-6551

•

U. S. Simplification Procedures of
Interest to Canadian
Traders—Edwin J. Cannon__"_

through bad

money

Obsolete Securities Dept.
99

the contracting parties is defeated
and the annuitant who lives out

variable annuity
reliable
insurance
a

'company but at the present
^nly to

Sound Credit for World

ter

com¬

vestment club, or participation

such

of accumulation.

pur¬

chases of
mon

the

enjoy as much
consumption during his retirement
as
he foregoes during the period

protect

*loss

the

terms

shall

question,
'best

Schwanhausser__

It is the intention of the parties
to this contract that an annuitant

en¬

counter

actuaries

lose

indirectly during the
lation period, v . ;

and

o w

and

arranged

erywhere I

for

guys

obsoletes!

•

• :

Encouraging Outlook

it has received from them directly

ings of invest-

'brokers.

and

man

5
•

-Era of Specialists: Role of the
Investment Advisers
—H. F. Wortham___

during the retirement period what

public meet-

banks

Prospects

always

waiting for

;r.
Business

■

to return to annuitants

than average.

surance

Women and to

Years Ahead?

___

-Unive rsity

■ors

Bond 1 Price

and

Historical Price-Earnings

the deficits caused by the
necessity of making annuity pay¬
ments to those who live longer
cover

its

Association of

•

savings will be used to

investments, the deal is furtda-»
mentally sound for an analysis of

:by chapters of

Ending the Business Cycle Through Successful
Investing
—Roger W. Babson

and if the insurance company does

More On Variable Annuities

the

Stock brokers,

and
themselves,
have not
this awakening
basis for promoting the sale

contracts to

of fixed annuity

lire

out the intentions of the
contracting parties has instigated
a search for a more ideal medium

expressing the intentions of
contracting parties.
It is recog¬
nized
by all concerned that &n
ideal medium of expression must

and

been

balances

trend

consumption

among

ceive small

persons

who

first

in the past.
to be of an

allowed

once

of units

dency

observed,

in 1950
the
decline in the value of the dollar.
This increased consumption was

fluctuate

widely

production was distributed in the
form of higher wages and higher

from

fact that favors its

use

ard

living:

dollar have
war

the

medium

intentions

the

parties

Now

this

upward

stocks

is not

the

unit

trend
of

matter

economists

in the
historic

But,

war.

the value

come

during

today

itself

for

need

and

Common

Stock

savings

declined

in 44

subject

the

Federal

believe

not

annuity is

stock and

sale

regulation.

that

the

sale

less

the dollar that has been going on

been

stable

than

the

stock

prices will be

temporary interruptions.

(7)

There

there

need

of this need.

would be

regulation.
for

reason

SEC

need

for

the

for

annuity
and
insurance
companies are the logical supplier

Fed¬

The fundamental

the

formation

(8)

the

A sale of

duplicate regula¬
tion but to provide regulation in
areas
where regulation was ,-abr.

is not

sale of stock.

may,

fund

However, be that
life interest in a

of stocks is
stock

mon

contract

interest in

rriore

than

is.

life

bond

contract. New issues of bonds

By KEATH P. GIBSON

consultants in

benefit field
contact

our

with

insurance

fixed

variable

company

pay.

annuities

reference

and not by

terms

their

reference to the

^employee
firm has frequent

management

and

they depepd

the

trust rather

the life of

than the life of the claimant. Thus
the

sale

that

the

mutual trust fund is

argument

right in

of-common

stock

sale
is

logical

but it does not prove that the sale
of

variable annuity

sale of

stock.

Summary

school

with

contacts

teachers,

women's

investor groups

high
clubs

offer conclu¬

sive evidence that persons of mod¬
erate

means are

the

already conscious

vital necessity

them of

protecting their programs for
tirement
against the inroads
inflation.

They

are

aware

re¬

of the

arguments pro and con with rela¬
tion to the

possibilities of

retirement
an

established

are

fby

.further

our

managements
ment

opinion that such
do, adopt, retire¬

plans of this type should not
"

tkcd.U

KtioS.tl

There

existence or amending
plans to guarantee larger
pensions. However, a few
employers attacked the problem
preventing a recurrence of the
situation.
During 1949 one em¬
ployer adopted a
pension plan

portion of each year's
earnings was allocated to the prefunding of retirement indome that
a

with

accordance

variation in the cost of living.

income

the form of

This

is the

(the Year 1880=100%)

reciprocal of the U.

S. Bureau

Labor Statistics' index of the prices of all
items
j

for moderate income families

large cities.

dol¬

fixed

nedge against rising price levels

form of retirement

some

which

changes.

varies

To count

with

price

retirement

income only on the form of fixed

dollar amounts is to speculate that
the price
level which has been

constantly
several

level

rising

decades

off.

cautious

the

over

will

would

approach to

last

finally

now

seem

balance the

form of retirement income

there

accom¬

experience puts the odds

that

modation

ance.

will

substantial

to future
changes in
price levels, particularly since past

attempts

principally
of

solve

led

the

plans which
income

with

the

vary¬

Retirement

already possible to estab¬

lish variable annuities for groups
of

employees

basis.

Their

made

plans insured by Col¬

Equities

this

inability

type
to

Fund

to have plans

insured
their

has

been

development.

through

other

clients

for sub¬

There

such

may

for

good

should

sure,

adoption

able

group

why

reason

not

group

also

are some

in¬

groups

insured arrangement

and Stockholders for the

plan of this type

wholly

stock.

plan

invested

trust

common

self-insured

retirement

advisors,

through participation in

common

for whom

our

preparing proposals

through purchase of mutual fund

sured basis. There

can

segregated

by trust companies

investment

available

one

self-insured

investments

trusts handled

the

either

shares,

price

market

investment

their

increases rather than decreases.
recent

mission to their Board of Directors

1880-1955 *

public which

exceedingly difficult to appraise,
not receive general accept¬

'it did

are

Purchasing Power (or Value) of the Dollar,

that it is no longer
provide for retirement

being adopted. At the present time

19*0

ideally

are

Plans, N. Y. City,

the executives of

19»

insur¬

life

this type of pension plan involved
a
financial commitment that was

this
problem
have
adoption of several

Purchasing Power (or Value) of a Unit of
Common Stock, 1880-1955 * (the Year 1880=100%)

market

investment

Department!

large

Nevertheless plans of this type are

1950

varying in

lars alone and that there must be

income

deterrent

1910

understands

through

1900

and - Company
Health, Welfare

on '

pruueni to

sibly

1990

-r"

Segal

and Pension

these plans have necessarily been
on a self-insured basis.
Quite pos¬

iaao

■

the

equity

companies

Martin

have

19*)

;

believe that-a

proportion

Consultants

lege

1980

By ROBERT TILOVE ;•

portfolio.
With the exception of certain or¬
ganizations which could qualify to

IVIO

one

management', and

Director, Pension

ready in

value

190c

mar¬

equity investment

which will be adopted by a reason¬
able number of organizations. Tt

dollar

ing

i#9°

benefits

equipped to sell such life incomes.

provide retirement

laoo

life

opinion that retirement

our

where

in accordance with the

vary

ance.

common

CHART II

It is

plans

pension

also qualified to underwrite
income expressed in dollars.

vary

direct

nuities. Identical insurance prin¬
ciples are involved throughout in¬
cluding such items as participation
or non-participation in
regard to
mortality, expense, and interest
yield. Furthermore, no type of
organization is qualified to under¬

portfolio and that the

power of retired employees.
Among most organizations action
did
not
extend
beyond supple¬
menting pensions that were al¬

would

investment portfolio as they are
to underwrite ordinary dollar an¬

value

ing

where

purchase life incomes

years

need exists for retirement plans to

em¬

proportion to the market value of

direct

the

defined

are

In conclusion

following.

corresponding in all re¬
annuities currently of¬
fered by life insurance companies
except that the benefits involved
to

retirement plans.

Dur¬

p u

comes

spects

be forced to self insure their o\Vn

(1)
and

or¬

making deci¬

are

type of asset which stands as
World War II
security for their execution. The
these
organiobligations of an annuity contract'
zations-be¬
are
not
transferable
and
they came
increas¬
depend
upon
the
life .of
the
ingly aware of
annuitant rather than upon the
the need to'
life of the company. By contrast,
protect the
the obligations of a mutual trust
transferable

retiring
ployees.
ing

Principles Involved

Insurance companies are as well
equipped to underwrite life in¬

seriously

the

are

contracts which obtain their clas¬

sification

furnished

Insurance

ment benefits which is considered

Towers, Perrin, Forster & "
Crosby, Inc., Philadelphia 2,. Pa.
As

can¬

purchased when needed.

!,the methods of furnishing retire¬

•

;

and,
ganizations:.who
resale of old bonds are subject to
sions
as;, t O
SEC regulation but I have never
.amounts
and
heard
anyone
argue
that
this
tvpes
of
re¬
makes a sale of a fixed annuity a
tirement
in¬
sale of a bond. The obligations of
come to
be
an

in event such annuities

not be

portfolio

V.C'/' Associate Actuary, L-

a .com¬

fund of bonds

or buying an
ordi¬
dollar annuity at retirement

nary

ket values of

sent and needed.

tirement date

variable annuity

not to

was

equities. At ~ present
they are giving consideration; to
making a cash settlement at, re¬

write such life income unless it is

variable

eral

value of the portfolio

the dollar should be stabilized.

"unit

not

(6) The advantage of the vari¬
able annuity over the fixed annu¬
ity remains even if the value of

the

should be

variable annuity is a sale of com¬
mon
stock but
even
if it were

out

emphasize the effect
of

variable

with

that

has

(5) There is reason for believ¬
ing that
the
long-term
future

Sale

some

stocks"

dollar for this purpose.

the

and

pointed out,

continuous decline in the value of

clearly that over
period of time, the market value
CHART

have

dollar has

non

this field, show
a

hedge

vestors' attention to the phenome¬

common

interested

We have not had 44
years of war. The spectacular de¬
clines that occurred during World
War II
and
during the Korean
conflict have served to draw in¬

accident. My researches, and those
of other

annuities

common

75 years.

annuity contract.
value

declines in

dollar

times of

the

dollar

expressing

during times of

attempts

diction of

superiority of the unit
the

maintains that the

come

that

lishes

over

against inflation amount to a pre¬
war.
It is true that the

average

stock

upon

spectacular

the

annuity

violent declines in the value of the

retirement

common

there- is

argued

sale of

are

value during
period has been
slightly higher than the average
value during the accumulation pe¬
riod, a fact which clearly estab¬
of

fixed

such argument

in annuity

together, it is found that in any
period typical of an annuity con¬
the

Many arguments are advanced
against the variable annuity, most
of which refute themselves.
One

the

would not.

If year-to-year fluctuation and
long-term trend are considered

tract,

annuity

have enabled an., annuitant

share in this rise in the stand¬

upward during the past 75 years, a
contracts.

variable

dividends.

would

stock has been

common

words

The value of the

perfect medium of expression for
the intentions
of
parties to an
annuity contract but it has proved

the

super¬

insurance companies are a logical

possible by the better meth¬
of production.
The increased

ods

a4<

the unit of

were

supplier of this need.

made

year, a

usefulness

than he did in 1940 in spite of

fact that lessens its
a
fhedium of ex¬
pression in annuity contracts.
As will also be observed, the
long-term trend in the value of
to

year

38.8%

consumed

ten¬

than

1940

unit

the

stock has shown

during

work." The average
consumed 12.3% more
he did in 1930, and

any

past 75 years.

common

during his re¬

sacrificed

American

(figure 2) which shows the value
a unit of common stock during
be

an¬

neighbor would be enjoying a
higher standard of living than
formerly and this without doing

will

purchasing

retirement

honest and any less a gamble than
the old one. I attach here a chart

fixed number

stable

insure that an

ever,

medium of expression is any more

the

superior

period of accumulation. How¬
while he was enjoying his
income, his unretired

his

contract

annuity contract

terms

would

tirement

A question arises
whether this new

stock.

common

nuitant would be able to enjoy as

except that it
consumption foregone

expresses

and

much consumption

annuity

stock

common

continue

dollars

respect

every

nuity payable
power

i. e., CREF.

variable

would

(4)

common

course

expressing the inten¬
tions of an annuity contract even
if the value of the dollar could
and should be stabilized. An an¬

Value of Common Stock Unit

The

almost continuously and is
likely to continue this decline in

scientific

by insurance companies.

variable

Most economists
opinion that the

such

if the programs

invested

clined

the future.

Stock Unit Superior

unit

would

pension programs of most of
the colleges and universities of

is like the fixed

medium for

the

the nation,

case

the dollar also will con¬

Common

administers

organization which

future

the

common

investments

certain

with

principles

other

The

re¬

modest salaries.

introduced

for

the

Not

respect it is significant that
the variable annuity was discov¬
and

tinue to decline in the future.

this

ered

trend

foregone

subsequent retirement period is

greatest

reason

every

the

vised

has

that

ties that vary in accordance with

date

(3)
The value of the dollar
during the past 75 years has de¬

economically sound and socially
desirable, particularly if invest¬
ment programs are carried out in

continue

will

during the accumulation period
with consumption allowed during
a

interest

long-term

value of the unit of common stock

value of

annuity

renewed

Thursday, July 12, 1956

I consider this

stocks.

common

accordance

that

use

stocks

down¬
of the

the

Thus there

seem

by the
value

accentuated

expecting

ly upwards.
for

dollar.

(2)
The
long-run
trend of
change in its value must be slight¬
need

due

ward

year,

The

The
share has
inventions

improvements in methods of

been

must not fluctuate too
in value from year to

(1)

upward

per

production. The upward trend has

meet two requirements.

greatly

of earnings

course

the

of earnings per share.

course

carry

is tied to

stocks

common

the market

annuity ap¬
pears to me to be a device that
makes it possible to carry out the
intentions of the parties to a fixed
annuity contract.
/
*

exchanges
slow

providing them

The'variable

(2)

.mutual trust companies
been

Investment

with this hedge.

in¬

necessity, of. finding

Inflation hedge.

stock

con¬

small

and

desirable

arrangement.

contract for

annuity is likely

than,

To
a

vari¬

to be sub¬

which will not be self-insured for

ject to

This is the Cowles Commission All Stock Price

the income

vantage because of premium taxes

Index, Series P., chained to the Standard and
Poor's Weekly Index and divided by the U. S.

tirement.

paying period after
It

their

hope

re¬

that

basic competitive disad¬

income

and

taxes.

However,

this will be outweighed

Bureau of Labor Statistics' index of the prices
of all items for families of. moderate size in

prior to the payment of the first

some

retirement benefit it

by the advantages of insurance in

large cities.

sible for them to purchase annui¬

will

be pos¬

(a)

cases

spreading the mortality risk,

Volume 184. Number 5550

The Commercial and Financial Chronicle

(187)
(b) offering

package of techni¬

respected

and

management,
contractual

furnishing
regulated
(d) providing

and

with

spect to the conditions of

but it would

advantage in

benelit

this form

of contract

cases

insured

be
for

buy into

versified
stocks

investment

but

he has

will

vision

purposes of

tirement

di¬

solve

that

Insurance

problem

and

super¬

vestment end. But

insol¬

continuing

income.

regulation

they should be

ARTICLE III

Tms

week

material

vestments

Boehmler,

denial

free

forward-looking

and, in doing

interest

and

enterprise for this

re¬
can

and

means

of provid¬

ing security to remain prohibited.

with

deal

study of In¬

Bankers

Mr.

the

Association

Erwin

cle and

dend

In signalling-out
calls

attention

precedent it may establish for increasing
Calls for "strict licensing laws" should

;

states permit variable annuity distribution.

V p

training

connection

In giving expression to his views
on variable
annuities, Richard B.

curities

ties

the official I.B.A. text¬
"Fundamentals of Invest¬

program,

Commercial

Companies

the

Indus-

Commit¬

try

which

tee

been

making

study of the
subject
and
that

strued

con-

thinking
that

basic

feel that

Confined

strict

speculation should

the

facilities

al¬

However, if this

licensing

various States to
o.

iv.c«i<.ru

avails

variable

laws

in
the

control

the
sale

Speaking to

Annual Educa¬

Skytop

Lodge, Sky-

top, Pennsylvania, Mr. Evans said:
"The life insurance business has
attained

its

prestige

and

the

with

There

business

popular

life

insurance

widespread benefits to
public.
Up to the present
time, the insurance business has
been
regulated
by the
several

provided in the McHowever, that Act
has been challenged by the Fed¬
as

Carran

Act.

Trade

eral

sistence

that

the

over

Commission
it

has

its

in¬

Court

accident

resolve

that

question.
"It is
tor

significant that the Direc¬

of the

Securities &

Commission

the

'From

SEC,

sale of
tutes

Exchange

recently
stated:
submitted to

evidence

would

appear

that

the

variable annuity consti¬
the sale of securities.
Such
a

being the case, it must come un¬
der the purview of the Federal
Acts

governing

"Our
up
a

investments.'
has

been

built

service

and

reputation based
the

guaranteed

work

An outline of the

The

ONE:

Business

which

prompt delivery
benefits.
Their

life underwriters has be¬

increasingly complex neces¬
sitating continual study of estate
come

CONTINUED

WEEK

:■

Fred Harson Arrives
PROVIDENCE, R. I.
of

Providence

—

Fred L.

Harson

investment

finally fulfilled
the baby of

his

firm,

promise

Co.,
has
as

Brown Uni¬

ac¬

versity's

the

various

familiarize

class

.1906

and

;

has

received

h i

diploma.

student with
affecting the availabil¬
ity of funds to business enter¬

Scheduled

1931, Mr. Har¬

who

tors

position to
supply these funds.

(3)
}

are

outline

the

investment

functions of
banking in¬

graduate
the

(5)

with

class

his

junior

and after

year

semester

one

To assist the student in de¬
veloping judgment in deter¬
mining securities values.

versity

To assist in acquiring an un¬
derstanding of the factors that

left Brown

son

dustry..

(4)

Contribu¬

—

prise and the types of inves¬

uni¬

Financing of

Enterprise

student

.types of bonds and stocks.

follows:

13th

in fi¬

course

Bankers

America, 425

Duke

Uni¬
en¬

in-

the

tered

vestment

business.
Dr.

Ten

Bruce

Frederick L. Harsca
ago the late
Bigelovv of Brown

years

influence the level of business

dared Mr.

Cady, Roberts & Co.

degree. He took the dare and after
years of 3:30 a.m. risings to study

Funds —Bonds,

Cheever

Cowdin

has

joined

the brokerage firm of Cady, Rob¬

Sperry Rand

vestment

the

Funds,

Costs

PART

—Financial

Rates

Security

Statements

and

Analysis

and

Interpretation—Analysis

Securities

—

Analysis of

for

To acquaint the student with
the principal financial prob¬

daily

University.

by corporations.
To broaden the understanding

of the whole field of finance,

Pub¬

Analysis of

—

(7)

Their

lic Utility Securities—Analysis of
Railroad

(6)

Funds.

Industrial Securities

Where to Enroll

now

to
an

a.m.

To Be
SAN

Registrations are accepted at
anytime. Write the Home-Study
Department, The University of

Bond

and

Goodwin

San

This announcement

appears as a matter

also

Board

from

1936

served

of
to

of record only.

Fran¬

Chairman of

Universal

Pictures

Houdaille Industries, Inc.

1949.

has

Blyth Appoints Stewart
To Head Ins.

entire business
with

career

the Hartford

purchased for cash the assets of

Analysis

Blyth & Co., Inc., 14 Wall Street,
New
York City, announces that
George Taylor Stewart has joined
the firm and will be in charge of
insurance stock analysis. A grad¬
uate of Wesleyan University, class
of 1947, Mr. Stewart has spent his
in the

Fire

Wales-Strippit Corporation

The

undersigned originated and negotiated the transaction.

field,

Insurance

Company, and more recently with
Shelby Cullom Davis & Co.

ctallen & Company

Tabor & Co. Opens
DECATUR, 111.—Tabor & Co. is
conducting a securities business
from
Street.

offices

Officers

139
are

West

Main

Purvis

Tabor, President; Samuel McK.
Keys, Vice-President;-and Dale
E. Slifer, "Secretary and Treasurer.

NEW YORK

while

Mr.

going
Harson is

Reynolds Partners

FRANCISCO, Calif. —
James L. Murphy on Aug. 1 will
become a partner in Reynolds &
Co., 425 Montgomery Street.

cisco, Blair & Co. and Bancamerica
Blair Corporation.
the

class

business,

official alumnus of Brown

Corporation.

the banking field, Mr. Cow¬
din has served with such firms as

Harson to work for his

lems faced

Sources of Short

Interest

TWO:

ditions.

—

Term

adapting in¬
policy to these con¬

guide

built

by the conscientious efforts of
large number of agents. They

have

business

near

courses

Investment
of

Course In Investment Banking."

jurisdiction

advertising of

and health insurance. It may take
a
decision by the United States

Supreme

located

offers

the

Street N. W;, Washington
4, D. C.t
for their booklet, "Correspondence

and

its

States

nance.

that

Write

Association

are

Financing of Business Enterprise
—Sources
of
Corporate Funds,
Stocks
Sources
of
Corporate

guaranteed

the

not

are

months, to $29.50 if books
purchased, plus postage.

25 Years Later

the

manner

characteristics

course

those

ences

the

ed.;
Co.t

required refer¬
may be rented or purchased.

Companies;
•
.

(3rd
Press

Other

Total cost will range from
$14.50,
if the rental set is used for six

Trust

trends

Ronald

$2.

tions of.Investment Banking to the

erts & Co., 488 Madison Avenue,
New York City, members of the
nothing guar¬ New
York Stock Exchange, it has
anteed in a variable annuity. It is
been announced.
totally
incompatible
with
the
Mr. Cowdin, formerly a resident
principles of life insurance.
of California, has played a leading
"The implications in the area
role in the formation of several
of regulation invited by variable
American aviation companies. He
annuities are far-reaching.
They is a director of the
Curtiss-Wright
give rise to the possibility of an
Corporation, Vickers Incorporated,
atmosphere inimical to the future and a member of the
advisory
healthy growth and development board of the Sperry division of the

public acceptance

benefits.

who

versity

interest

Finance"

York:

Policies

-working capital and to
quaint the student with

Study Courses

particular

and

Investment

Bank¬

•

The I.B.A through its Education

Corporation
1951)

for

business enterprise obtains its
funds
for
plant, equipment,

Committee also offers home study
courses
in cooperation
with the
is

Govern¬

Policies

familiarize

with

(2)

University of Chicago. This

•,

Investment

York:

J. Cheever Gowdin With

tional Conference of Colonial Life
at

lessons

instructor

Prentice-Hall/
1949) Text Edition, $7.50; and

Harson,

good book store.

Home

(New

Inc.

•

PART

fieldmen

any

(1) -To

op:

"One Hundred Short Problems In

Objectives of This Course

were

annuities."

Commit¬

tee.

their

legislation is enacted, our indus¬
try should be insistent that there
t

the

ready available.

said

he
might be

any¬

thing

which

foreign

area

concept of public service through
guaranteed benefits. ! •
-

has

felt

philosophy -is

.
_

—

Banks

—

of Insurance

Joint

ing"

uals— Investment

subsequently
building and business insurance
combined in a single volume but
questions.
They
are,
in
fact,
Evans, President of Colonial Life,, specialists in guaranteed values both are now out of print.
The
on
edition published by Prentice Hall
June 27* said that up to now and benefits. It is now
proposed
he
had
since
1949
is
pur¬
substantially
the
that
theysell' something which
posely re¬
is not guaranteed. I do hot think same as the. two predecessor edi¬
tions. The student edition sells for
mained silent
this should be permitted.-. In en¬
inasmuch- as
$7.50 and copies may
be
pur¬
tering the orbit of variable an¬
chased direct from the publisher
he
is
Chairnuity, distribution, they would be
man

damentals

Markets.

the

the public. Text material
purchased consists of "Fun-"

was

from

PART FIVE: Investment Policy
—Investment Policy for Individ¬

developed.
This is a standard college text¬
book-now published by PrenticeHall Inc.j 70 Fifth Avenue, New
York, N. Y. It was originally pub¬
lished by the I.B.A. in 12 separate
sections:which

The Over-

—

Markets

Se¬

mental Regulations of the Securi¬

this

Banking"

Exchanges

the-Counter

pro¬

with

ment

statutory regulation.

set

book,

variable annuity's incompatibility with the

principles of life insurance, President of Colonial Life also

I.B.A.

—

tribution of New Issues—The

Immediately after World War
TV the Education Committee of
the

Policy

PART FOUR: The Marketing of
Securities — Origination and Dis¬

;

and

New

Security Prices.

Mergers and Con¬
solidations—Holding Companies—
Refinancing and Reorganization.

13th

gram, v

Com¬

Financing of Corporations—Divi¬

here.

Industry Executive Cites Variable Annuity's
"Incompatibility" With Life Insurance Principles

Investment

PART THREE: Problems in the

D. C.,
and

and

Securities—Corporate Stocks

Investments—The Business Cy¬

America,
St. N. W., Washington 4,
for the suggested textbooks
home study courses reviewed

425

to be.

pany

Investment

able

Securities

Investment Bank¬

indebted

ac¬

form.

supplied by the student
Al¬
though originally
designed
for
employees of member firms of the
I.B.A., the course is now avail¬

ties—Analysis of Municipal Se¬
curities—Analysis of Foreign Se¬
curities— Analysis of Real Estate

ing that can be obtained and stud¬
ied by sales trainees and others in
home study courses of their own.

with

public

wnl

regarding

enrollment

Stationery and postagq

United States Government Securi¬

Study—

the

are

Fundamentals of Security Salesmanship

permitted. It will be inconsistent
the

Tuition is $45 and must

company
both

By JOHN DUTTON

—What To Read And

considered necessary to
against
potential
abuses
either in the sales end or the in¬

uble problem in
arranging for a
complete liquidation of that hold¬

ing for

form.

Securities Salesman's Corner

the

guard

common

rather

Let these annuities be subject to

well.

interested

understood.

to be avail¬

arrangement

Chicago, 1375 East Sixtieth St,
Chicago 37, 111. for an enrollment

em¬

We have found that where vari¬

whatever

The

able annuities have been put into
effect they are welcomed and well

able.
be valuable for individuals
A person can now

number

and,
higher, • this
new
form; of security may very
well
spread among collectivelybargained plans.

re¬

certainly

many

pur¬

addition of variable annuities
if benefit levels go

The advisability of in¬
suring a variable annuity plan ob¬
viously depends on the particular
an

increasing

ployers will be

payment.

group,

useful social

a very

pose.

closely

guarantees

fulfill

so,

cal and adminisirative know-how
that is otherwise
fairly expensive,
for small groups, (c)

24 *

(188)

Continued

continued

jrom page 7

come

rise

This ' discussion

Prospects in the Months Ahead
of

sons

ter

1953

and

probably at
relatively high rate during the
second quarter of 1956.
Does this
was

Monetary Policy and Built-in
Stabilizers

The

that

built-in

have

stabilizers

face

inventory

Most economists feel that some

econ-

our

turnaround
and
a
consequent
slump in general business activity?

important lesson is
some
powerful

second
we

that

mean

mitted that they
tend to buffer
disposable income against changes
in
total
personal
income
and
prices.
These devices were -important in -cushioning the effects

slackening in inventory accumulation is imminent, primarily because of the steel situation. During the first half of 1956, steel
producers were pressed to capacity to meet demands. A considerable portion of this demand
arose from attempts to accumulate stocks in anticipation of price
increase or disruptions in output
later in the year. Although steel
is still short in a number of lines,
industry observers forecast a re-

of the 1953 recession/

duction

Three such stabilizers are
progressive income tax, unemployment
compensation,
and
farm price supports.
While these
three relatively recent additions
omy.

the

political-economic system
be vigorously attacked on
grounds, it must be ad-

our

may

other

Finally,
rect

learned

for

Monetary policy

create

able

re-

used
favor-

While

hardly

recovery.

easy

policies of the Federal Re-

money

authorities reversed the

serve

re-

cessionary trend and gave rise to
recovery, few would deny that the
high liquidity that was maintained
facilitated
an
orderly
working down of inventories and,
more importantly, assured an adequate volume of relatively cheap
funds

finance

the

jmportanj Differences Operating

was

would argue that the

anyone

view-

indi¬

Prospects

for

1956

prospects are
excellent.
The
strongest single
factor influencing the outlook is
the tremendous plans of business
for capital spending.
Some ob¬
servers

fear

that

these

programs

spending

cutback ; if
consumer
fails to advance during

the

few

may

be
next

tfie nature of the
capital-spending programs. As I
mentioned
earlier,
these
plans
are
based largely on : confidence
,

short-lived.

•

its

Monetary

effects

construction

policy,

spending

provide

economy, and a

could

autumn

the

signal

the resumption of growth in

ouput.

dered

why I have not said

about

for
total "

monetary

economic

rience

The

activity.

1948-49

expe¬

1953-54—

and

possibly 1955-56 — seems to
support this view. If it is correct,
the
prospects
for
maintaining
good business in the United States
and

lor many years

to come are quite

favorable.
Mild

•

.4,;.'..

Short-Lived

What

this

the

are

discussion

nance?

You

implications
municipal

for

have

fi-:j:

doubt won¬

policy in refer¬
ring to business prospects.
This
was
intentional, for I wanted to
defer

discussion until
the close rela¬
tionship between credit conditions :
and
the state of the municipal
such

any

because

now,

bond market.

This implies that

shall dodge any discussion of tax¬

ation,

SIow-Down

-40.1

volume

the

financing',

and

municipal

the like.

This

does

not

mean

that

tem¬

setbacks can be avoided.
Primarily because of the inven¬
tory situation, some slackening
in output
may
be in the cards

How

Monetary

for this

summer.

But

even so, any

Policy

Conducted

porary

First,

few

words

Is
,

about

•

administration of monetary policy
in the United States.

the-'

The primary .<

■*

Today

WHAT

S i?

MAKE

cann°t carry the parallel
<ruch further, because.certain im-

Pprtant

factors

the

business

picture bid strongly to make up
"?r any change in inventory poli-

The most striking of these
the announced plans of busi-

?les;

nesses to spend record amounts
?n new plant and equipment dur-

wmm

ing the rest of the year. These
expenditures are projected at an
annual rate of $37 billion for the

through

bank

„

programs
promise' *
strong underpinning
favorable
reception for the new automobile
models in late summer and early :
to

for the

third quarter, as contrasted with
a $34 billion rate in the first half
°f I95® and a total of only $29
billion for * all of 1955*-the pre-*
local 1 governments,} and
others, ^ious record year.
j ; ft-t
■
was
the primary weapon in the
Such plans are, of course, subgovernment's 4 anti
deflationary jcct to revision. But it is neverarsenal in 1953-54.
It proved to
theless significant that business
be an effective weapon, thereby expenditures on plant and equiodisproving the theory that grew roent were Poetically stable, durout of the
Great Depression to
in£ the last three quarters of
the effect that monetary policy,
1953 and declined during 1954. although effective in
curtailing
More significant than the actual

boom.

both

The* capier.

months.. This view

is, I think, based on an erroneous

conception

tal

tively short-run swings in inven¬
tories rather than to major swings

divergent trends, what
are the prospects for a continued
high level of business activity
during the rest of 1956?

In my opinion, the

cycle may well be correct.
If
capital spending remains strong,
our major
problem in promoting
economic stability is more likely
to be one of adjusting to rela¬

the

strongly

Excellent

than

t^ird quarter that may pull output down to less than 90% of cabe pacity.

atmosphere

pro-

moting stable business may
quite effective in stimulating
covery.

scene,

cate the nature of the current re¬

adjustment.

and

should

slow-down

mild

take

consumer

saying that those economists who
believe that the postwar era has
ushered in a new type of business

means

such

should
of

jndi-

that

action

government

business

during" the J ip long-range growth of. markets,

demand

entire

but enough has been said to

inventory accumulation was at a
high rate during the second quar-

This fact leads to
lesthe 1953-55 experience.

free society.

the two remaining significant

the

covers

Thursday, July 12, 1956

.;.

temporary

vance

the fourth quarter.

strong in

and Financial Chronicle

slackening in the ad-,
spending to
cause
significant cancellation of
projects.
- ;
*
This is simply another way of

and

in disposable in¬
dampened rate of

growth in consumer and mortgage
credit. If these views are correct,
automobile sales could >be very

Business and Bond

the

and

The Commercial

reserves,

money rates, and availability of
funds to home builders, state and

demand, is of little
cession

when

use

threatens.

re-

tn.ii

level, of expenditures is the busi-

ness attitude underlying the de'/:Ccisions
to
devote
such
large
Know These Business Experience
amounts
to
increasing :" capacity
!

■

Lessons

I have dwelt

—

and

this interesting

period of history

at some length
First, it is important that every businessman,
every professional
man
and, infor

two

deed,

reasons.

experience if
pared

recent
are

are projected well intq the future,

that this
For example, automobile firms olan to
spend close to $2 billion for new

with

cope

business

plant and equipment this year,
in spite of the fact that sales may

pre-

similar

fall

a million-and-a-half short pf„
1955.
This industry and many
others are looking to markets in

de-

velopments in the future. The experience should leave little doubt
that

combatting recession,

the future.,

should in most instances place our
chief
reliance on
indirect gov-

action

and

stabilization

Another

important

•

difference

between early 1953 and early 1956

ern/nent

Business today is

based upon the belief
is. a growth economy.

citizen,, understand

every
lessons

these

efficiency.

taking the long-range view; plans

automatic involves the

automobile situation,

devices, rather than Whereas many observers point to
government, spending.: automobiles as
probably the softSecond, the experience is signify.est spot 4m. the
economy, I
becant because
a
number
of
ob-<lieve that the automobile indusservers see a parallel between the
try is in a
on

heavy

first
;

basically strong posiand
the first tion, today.
Although output' is
In judging today's; still low—relative to 1955, and unsituation, it may be help- employment in the industry is
ou* similarities and
high,, the important fact is that

half

1953

half of 1956.
business

differences

the

two

periods, .the industry has gone a
long way
Specifically, we shall try to an-'toward
readjusting to. the ultraswer
the
question
of
whether high
production and sales of 1955.
there is likelihood of another reFew would deny that the induscession
such as was encountered
try oversold the market last year,
in
1953,. whether the outlook is
primarily by means of the stimufor stability, or whether the econius
afforded
through relaxation
omy is ready to resume the upof
consumer
credit
tewns.
Re¬
ward Push that was interrupted
cently, however, the excessive inm
early 1956.
*ventories have declined as a reIioso

„

suit of

Recession of 1953 to Be Repeated.-

It is of little
the first six

1956

and

level

use

The

months

were

output,

income.

MWM-.

point out that
of

both

periods

1953

high-

employment
same

number

has

been

some pickup in sales and
retrenchments
in
output.

Industry observers believe that
the low point has been passed,
Furthermore, it is generally be-

and

lieved

true

embody

periods,
many of which were followed by
quite diverse developments.
It
is useful, however, to note that
past

sharp

well
and

that

the

style

catch

1957

models

changes

the

that

consumer's

fancy,

there is' little doubt that

consumer

position

today,

will
may

the

strong financial

what

with

the

Ho
tea

■-'

Mi
Ca

pre
cvu

Volume 184

Number 5550

The Commercial and Financial Chronicle

(188).

\
to believe — the result of
autocratic rule by one individual

responsibility for administering
monetary policy rests with the

seem

Federal Reserve authorities* con¬

sisting of the

members of

seven

and the volume of excess reserves

small group in Washing¬

ton.

held by
When

action in the long-term fourth quarter, and that the
out—
Furthermore, this impact look for interest rates is for no

sector.

serve

member banks).
we

hear that Federal Re¬

the

is not confined to government ob¬

further

hardening and probably

are-pursuing a. ligations, but tends to " permeate ssorrie easing during the summet
policy, it usually the entire bond market. -This?is Other. things remaining equal—r¬
are rel¬
partly because yields on govern¬ an unrealistic but painfully nec¬

authorities

the Board of Governors in Wash¬

"tight

money"

ington,

means

that discount rates

The
importance of monetary
12 presidents of the policy as a means of promoting
regional Federal Reserve banks, economic stability ..rests upon the
and the 108 directors of the banks. fact that credit is indispensable

the

The Federal Reserve

System is a

blending of public and
representatives, of
na¬
regional viewpoints.
The most important policy group
in the System is the Federal Open
Market Committee, which is com¬
posed of the seven members of
the Board of Governors and five
of the
12 Reserve
Bank presi¬

unique
private
tional.

and

dents,

who

basis.

This

serve

rotating

committee makes the

decisions with respect
Federal
Reserve
purchases
policy

United

Government

States

to
of

secu¬

rities, and also performs an im¬
portant coordinating function that
indispensable in the formula¬
tion
and
implementation of a
is

national policy;

It cannot be

em¬

phasized too heavily that monetary

policy decisions
sions,

and

are

not—as

group
some

deci¬

people

most

business

operations

atively high, or are being raised, ments are "bench marks" for in¬
that open market operations terest rates on other credit in¬
are
conservatively pursued, so struments, and partly because the
that increases in the volume of credit market is sufficiently fluid
money and the supply
of bank for a shortage in one sector ulti¬
reserves are restrained. An "easy mately to be felt, throughout the

and

by far the vast majority of pay¬
made with credit (bank
deposits). The cost, and
availability of borrowed funds are

ments is

demand

money" policy, on the other hand,
spending- may reflect reductions in reserve
saving decisions of business, ag¬ requirements, decreases in dis¬
riculture, and "consumers.
count rates,
and open
market
The monetary authorities influ¬ policies designed to foster growth
ence the
cost and availability of in the
money supply and bank
credit primarily
(1) by setting reserves.
d i so o u n t
rates
(the interest
charge made by Federal Reserve What Tight Money Policy Means

entire

bound to influence the

banks

essary

assumption we might ex¬
pect some firming of bond prices,
in the summer. And this is about

and

the

policies

ket

monetary

can

for
I

the

municipal

leave

the

bond,
mar^-

municipal fi¬

to delve into the

men

nical

in assessing
business

specialists* and

nance

their

bonds

markets.

restrictive

1955 and early 1956
impacts primarily on
short-term interest'..-rates, but also
contributed to declines in prices
of long-term government, corpo*
rate and municipal bonds.
The
decline in prices
of municipal
had

implications

situation

market.

Thus

far

tech¬

of i bond^ election

aspects

approvals, the volume of issues
hanging over the market, and so
on.

■

•

;

•

Conclusion

de¬

availability of investment

look,

reflection

up,
the business out-j
especially ■- for the longer--J
issues, and; range period, is encouraging. The-,
in
limits set by
no
Congress^) the
doubt
has
complicated
the readjustment that has thus far/,
amount
of
idle
cash
member
task you face in raising long-term characterized
1956
should
not
banks.must hold against deposits;
capital. It is important to under¬ have much longer to run, and.
and
(3)
by buying and selling ing bank lending, there may also stand, however, that these restric¬ there is good reason to believe
tive policies were prompted by that growth in total output wilt
Government securities in the open be
a
decided
short-run
impact good
business
conditions
and be resumed when the readjust¬
market (which tends to increase on bond
prices as a result of ex¬ near-capacity levels of output. ment is comoleted.: Whether this
or
decrease the stock of money pectations of the ultimate effect Under .such, conditions, an unre¬ will be in the fourth quarter b£.
strained; expansion of credit can 1956, or the first quarter of 195'/*.
only- result in inflation, and* I or possibly a little later, no one
think you will agree that some can say. I think the odds are on;
increase in interest charges is a the earlier dates.
In the mean-,
One of a series telling what Chesapeake and
sm all price to pay for reasonable
time, some easing of money con¬
is
doing to make this a bigger,
stability in the price of the labor ditions and somewhat firmer bond,
and materials that you purchase prices could well occur.
with the proceeds of your issues.

lending

tight. money policy implies
availability
of funds
and relatively high interest rates.
Although the initial impact of
such a policy may be in the shortterm area, i.e., primarily affect¬

commercial

restricted

banks); (2) by establishing (with¬

was

creased

sum

funds relative to new

Ohio

\IL ROAD

better railroad.

Even

the

with

tary

policies,

tion

have

restrictive

costs

mone¬

Sperry Rand Stock
Offering Underwritten

construc¬

risen

markedly over
the past few years, so that your
construction
dollar
is
buying
much less than it did as recently

Sperry Rand
its

common

Corp.

is offering';

shareholders of record

1953.

July 9, 1956, rights to subscribe to /
an
additional
2,570,846 commota
monetary4 policy provides shares at $20.50 per share on the
10 /
the basis for evaluating the rela¬ basis of one share for each
tionship between business trends held. The subscription offer will
and the municipal bond market. expire at 3:30 p.m.
(EDST) oi*
.,
Jn such ajn evaluation, the cru¬ July 25.
This brief background descrip¬

tion

ling the lovely little lady is wearing fr0m A
of her

slippers

to the ribbon oh

)duct of the chemical

her hat

industry, made out

|ordinary materials as coal, salt, sand, woodid natural- gas—resources

found in great

Ince along the 5,100 miles of the Chesa-

Ind

Ohio.

:hemical

Ite, with

along the Chesapeake;-and Ohio; Each
expanding: factory means

Chesapeake and Ohio—not merely the
rials that go

that

the

Vf\'< v.'5-"

of its

new

tremen-

plants going

out, but

one

was

raw mate¬

work there.

during the next few months.
in

This

years ago.

To better

serve

its

And last year,

creased to $3.50.

V;.

was

in-

„

programmed for this
a new

year:

eight million tons of import
addition

the great

can

unload

ore a year;

industry attracts others: Hooker Electrochempany built a plant on the C&O at Montague,

gkt over a thousand-year supply of salt. Union
and Du Pont—both large users of Hooker
—built plants next door so gases and liquids
piped in.

Russell, Kentucky,
tion
new

and

a new

month, At '

$5/2 million classifica-

yardl;';222 new d^esel locomotive? and 8,000
freight cars.
A 1 : - v - ^;
v

Every day in

every

growing and going!

way, Chessie s railroad is

words,

our
a

;

'•!

•

and opportunities

industrial

resources

in C&O territory. Address:

sapeake and Ohio
-kfcr

Railway
3309 TERMINAL TOWER, CLEVELAND f, OHIO

additional

manufacturing;

plants, machinery, and equipment*
modernization

the

monetary
number of

facilities

and

the

existing

production

machines for rental.

money

For

In
would

recession

return

1956

the

ended March 31* "•
the company's >

year

sales

net

easy

return

■

toward

easier

policy may have

1956

were

suited in

•

1
;

;
'

;

$710,696,087 which renet, income of $46,348*-

already been set in motion (the
878.
•
monetary authorities are closeThe company occupies 40 plants. ;
lipped concerning the meaning
in
16 states in* this country, in
of their day-to-day actions — and
rightly so). Bank reserve posi¬ addition to 35 plants in 20 other
tions have eased over the past countries throughout the world.
*

weeks.

However,

this
a

eas¬

seasonal

tax borrowing period, and

booklet describing

'*• tion

•

few

new

be expected.

ing has coincided with
Write for

and services were dimoney, products
vided as follows: instrumentation
would be
and controls, 36%; tabulating and
launched as soon as the signs of
business machines, equipment and
adonwturn were sifficiently clear
supplies, 33%; hydraulic equips
to the monetary authorities.
ment, 10%; farm equipment,..10%
You' remember that I. said, some
and other products and services
slackening in output might be in
11%.
'
V
the cards for this summer/ If this
Net sales of products and serv¬
view is correct, some easing of
ices for the year ended March 31,
money is likely.
Indeed, a trend
mean

;

coal docks that will increase.

their capacity to 2JA -milliori tons a
i

other

yr*
over

when

quo

At Newport News,

bulk cargo pier that

that

conditions would

Another $100 million in further improvements

Va.,

clear

income.

flexible, policy of
Sperry Rand Corp. develops and \
"leaning against the winds of
manufactures
instruments
and
both. - inflation,
and
deflation."
controls for defense, civil aviation Thtis, if business slackens during.
and the merchant marine; tabu- ;
the hext few months, an easing
lating and business machines and ,
of monetary pressures is also to
equipment; ; including
electronic >
be
expected; if business moves
data
processing equipment, foc.r
upward, some tightening of money
science and
industry; hydraulic :
may occur; and if we roll along
devices for a variety of applica¬
oh
a
more
or
less even plane,
tions; and farm machinery.
roughly the status
of

improvement:

the annual dividend rate

■-

•

becomes

years pursued a

expanding and mod-;

has been paid for out of current

any

shares.

policy,

authorities have for
•

eraizing its transportation plant. Equally signifi¬
the fact that 80% of this vast

Fenner & Beane
unsubscribed

will

which
right back to where we

understood

half billion

Lynch, Pierce,
purchase

This

forecast

Reserve

ments.

dollars in the last ten years

mmzm.

demands

Net proceeds from the sale of/
brings us
started, because a forecast of Fed¬ these shares will be added to the .
eral Reserve policy is essentially general funds of the company and ^
a
forecast of business develop¬ used principally for the acquisir-

;

growth, C&O's

twenty-five

program

turn

Federal

freight business is four times what

booming industry, C&O has spent

cant is

cial, questionerelates to the prob- -j An. underwriting group headed^
able trend in monetary "conditions ; by ^Lepman Brothers-andMerrij|f<

homes, schools, groceries for

come to

result of such industrial

merchandise

jM; %

into the plant and the finished goods

people who

industry is growing at
many

come

new pr v

diversified grpwthfoxf

W. H. Harrison Co. Formed

it may

NORTH MIAMI, Fla. — W. A~
simply be that System authorities Harrison is conducting a securities
overshot their mark in supplying
business
from
offices
at
122 ip
seasonal funds.
Or it may well
Biscayne
Boulevard under
the
be
that
policy
has shifted to firm name of W. H. Harrison &e
"neutral"—which means that pol¬ Company.
a "wait-and-see"
until' signs of either a

icy is of
uptrend

Low

variety
definite

Robert N. Kastor Opens

downtrend emerge.

Bond

Market

Price

Already Seen

My personal opinion is that we
have seen the low points in the
bond market at least until the

in
offices
Wall Street, New York City.
Kastor was formerly % part¬
in Gartman, Rose &> Co. and

Robert N. Kastor is engaging
a

securities business from
1

Mr.
ner

Hettleman & Co.

•

;

The Commercial and Financial Chronicle

(190)

any observable benefit to any one, business
There have been real monopolistic abuses

bringing

(Continued from first page

this country

See

but current

this country,

it might be worth what it costs. On the basis
of experience, however, there is little or no reason to
expect any contribution of that sort. Were some of these
cases
to make it quite clear that the law as it is now
written and as interpreted by the courts actually penalizes

certainly they should in their

is, however, that the growth

behind them, of course, but these individuals were for the

Continued

part without capital at the start, or at least, with
limited amounts of capital. Their enterprises grew
prospered because they plowed back their earn¬
ings year after year, enlarging, modernizing and im¬
proving.
' - • •;
■ " ■/'■'
How could such an enterprise get under way similarly
now? If incorporated the enterprise must pay a large
share of its profit to the Federal Government in taxes,
and further large sums to state and local
governments.
Any profits drawn out of the business by its owners must
.

then

face heavy individual taxes which become very
nearly all of it when the amount is large in the hands of
one
or
a
few individuals. Should it prove possible
by
plowing back what the tax collector leaves to build up a
large business, the founder, of course, is fully aware that
upon his deaths the tax collector will take a lion's share..
of the wealth accumulated.'
Where, then, is the drive to
develop new business enterprises to give the large, estab¬
lished enterprise real competition? The
nearly confisca¬
tory taxes are hard enough upon the wealthy whom they
are devised to
soak; they are far more burdensome and
costly to those who are trying to become wealthy, or in
other words
endeavoring to provide competition to estab¬
concerns.

And, the Labor Laws!

Similarly with the labor laws of the land. It is

often

said that to carry on a
and thus to
compete

manufacturing business efficiently
successfully with large and estab¬
lished concerns enormous amounts of
capital are required.
It is true enough. The march of
technology, the perfection
of mass production
techniques and related developments
have ushered in an era of
push-button manufacturing.
But how many of us realize that a substantial
part of all
this is definitely based
upon high wages, short hours of
various

restrictions upon labor (imposed
by
by the unions with government support).

The pressure is severe and eternal to reduce the number
of man hours devoted to the
production of almost

any

article
be

other

of commerce/That

great but for

certainly would not

punitive overtime

circumstances

moreover a

pressure

which

make

labor

v/age

rates

and

costly. It is
now
imposed
relatively less burden¬

fact that the various restrictions

by unions and the government are
some to the
large enterprise than to the smaller
The

politicians
or

never

to soak the rich. Such

governmental policies certainly do
help big business, but they do hurt small business a
good deal more than they do the giants.
not

facts such

antitrust situation

these

which

leave

the

so-called

disheartening. The powers that be,
such intention, pursue policies which
tend to stifle
competition from young and rapidly growing

probably with

businesses and at the
own

same

time

policies in the courts. In all

attack

the fruits of

too many

its

instances these

proceedings end in consent decrees which merely hobble
the enterprises
upon which they are imposed without

political

ap¬

—

from first

this

Where all

infla¬

against

leads

should

to,

"If every rise in price

be obvious.

resulting from previous wage in¬

creases," he commented, "is now
to be regarded as ground for fur¬
ther wage increases, then we are
certainly on the road to ruin."
The comment was evoked by the
of
the
pound
the British are that
the French should be

weakness

recent

sterling.
worried,
even

so.

four

first

the

months of 1956, France's deficit in

foreign trade reached over $290,000,000.: At that, this year her
American aid is expected to fall
to

little

one-half

than

last year's $900,000,000, while the
chronic budget deficit is upward

page

her price level has
inching upward, thanks
to rising labor costs
and taxes,
with a new "wage-round" pend-;
ing, the French labor shortage
being enhanced by the wholesale
And

bound.

Monetary Showdown
In Western
over-full

maternity,
benefits, and

The

picture

same

over; even in Italy,
is
in
short supply.

half-hearted

But

obtains all
skilled laibor

the government
on

all

measures

have

is issuing

bonds

escalator principle based, of

things,

product.

the

Before

Never

national

gross

History

Never before in history

the Norwe¬
The "middle-

announced

again

re¬

fight

reached the point in France where

the progress of the spiral.
wage-boost demands are

not stop

Massive

The conse¬
quences are the same, too, prac¬
tically
everywhere:
wages
and
prices are rising. And so do the

mobilization of young .men to
in Algeria.
Inflation fears

.for

the scene, with shortage of skilled; child and old age
labor, if not of labor altogether, sickness and unemployment
the
obvious symptom of
over¬ lief."

strained resources,* <"

Europe

subsidies

vides

dominates

employment

have so
gian trade unions;
many treasury chiefs and central
of-the-road" -combination of two, bank governors so often predicted
mutually incompatible policies impending catastrophe of such in¬
deficits in trade with the dollar, leads into an impasse.; One or the tensity—with so few of their own
area.
In 1955, Sweden's over-all other must
give way.
Inflation peoples and politicians paying so
trade deficit reached a new high plus
deflation
equal—a
show¬ little attention to them—as is the
of 1,359 million kronor. Western down.; The situation in Sweden is case,
in
Western - Europe. since Germany's deficit in trade with quite similar. In November, 1955,; mid-1955.;,.,'/
;
the dollar area amounted to $200 the new chief of the Riksbank
Yet, something has to be done-:
million in 1954, and doubled the sounded a blunt warning against
in order to keep prices from "run¬
following year, though she keeps < wage boosts requested by labor
ning away." What is at stake is
gaining gold and dollars from the in order to compensate for higher not
just a 2 to 3% rise of living
rest of Europe and elsewhere.
prices (brought about by previous
costs; that much is conceded by
The inflation of consumer in¬ wage boosts, up to 8% that year.)
most
monetary
authorities.
At
comes
outstrips
the
respective He spoke of the "compensation- stake is a serious inflation and an^
countries' capacity to provide ad¬ devil" that has led the country
equally serious widening of the
ditional consumer goods.
The ex¬ in the last ten years ^'to a stupid
dollar gap. But what can and will
cess purchasing power boosts do¬ and childish play with the infla¬
be done—beyond paternal admo¬
mestic
to spell it
prices and causes more tion fire." ; He went
nitions to consume less, to ask for
imports. Naturally, exports can¬ out to an assembly of/union lead¬ fewer
pay increases, and to save
not rise proportionately.
"Sweden has not yet wit¬
Higher ers:
more?
costs
impair
the
competitive nessed the definite breakdown of
All over Europe, Cheap Money,
power on the dollar markets, es¬ the inflationary game, but sooner
a sacrosanct dogma of Keyaesianpecially. In addition, the buoyant or later,
the
breakdown
must
condition of the domestic
marcome.
."
But - presently, the ism, has been abandoned. That is
a
very significant beginning, but
kets distracts the producers from unions are at it again, demanding
competitive efforts abroad. Every another 4% pay raise, with per- only a beginning. The discount
"overloaded" national economy is man productivity increasing at an "screw" is ineffective unless it is
turned on so sharply as to pro¬
being strained beyond its produc-; annual rate of 2%, at the best.
hibit borrowing.
As it is, about
tive capacity. Every government,
The trouble is that prices catch
one-half of the added cost of capi¬
from Finland to Italy, is trying to
up with wage raises; the working
tal is being charged
to the ; tax
stem the inflationary tide.
men feel like they have been de¬
collector; the other half to the
ceived.
Even in a. country -with,,
The Fly in the Prosperity
consumer. 'The- volume
of eredit;
chronic unemployment like Italy,
Ointment
outpour
has
to
be
controlled.
industrial wages are rising since
"Selective"
credit
controls
dis¬
That is why a financial crisis is 1945
at a percentage rate which
criminate against productive en¬
developing underneath the boom.
.

the

doubles

The

rate

increase

curious thing is

that it may living costs and more than doubles
be
brought
about
deliberately: that of the average per man-hour
by credit controls and other re¬ productivity. Britain's problem is
straints—some departure from the most
instructive.
In
nine years
Keynesian philosophy! Practically since 1946, basic wages (without
all European countries are faced
over-time)
increased by 56%—
with exactly the same problem of
and living costs by 57%.
In 1955
hypertrophy and try to apply ex¬ alone, wages and profits rose by
actly the same methods to stop 8%% each, wholesale prices by
an impending price inflation.
3%, and per-man output by 4%.
Look at this report from Oslo
In the first four months of 1956,
about the "shock" suffered by the
wage increases lifted the nation's
ruling and very socialistic Labor production costs by
$700,000,000,
Party (New York "Times," March
adding to them "as much again as
5, 1955):
in the whole of last year,"
an¬
r"With

one.

tire of talking about helping
conjuring up devices for the alleged
purpose of giving aid to the struggling small enterprise,
but the fact is that
nothing that they have done or are
likely to do or, perhaps, could do, could serve even to
offset the burdens
placed upon small business by various
New Deal measures or
by crushing taxation often designed
small business

necessary

battle

//;

restarted

most

very
and

that action

business of

activity
general
economic policies of government. If it is thought well not
to have these giants, the thing to do is to give up or modify
these governmental programs, not merely try intermit¬
tently through the courts to prevent government pro¬
grams from having their normal consequences. Consider
the inevitable effect of our system of ultra-progressive
taxation. Recall how the Ford organization, the Rocke¬
feller interests, or almost any of the others, gained size and
momentum. They had men of vision and boundless energy

and

course,

or so it is thought to be — to go about the
striking at monopoly and kindred abuses in
really effective way. /

dangerous

government

is, of

situation is believed to have

this

peal. In point of fact, under the teachings of the New
Deal and the Fair Deal, popular misconceptions have
created a situation in which it is actually politically

own

of very large individual units in various lines of
is in part at least a natural outcome of broad and

work

trouble

The
correct

Effect of Broad Policies

lished

past; there may be some at present,
are not likely to make much

of action

against them—certainly not so long as conditions
J are encouraged which give them excellent opportunity to
make headway.
|

interest.

The fact of the matter

years

the

tion."

progress

vigorous business management, there is at least a chance
that the American people could be persuaded to do some¬

thing about it,

courses

Thursday, July 12, 1956

test

consumer.

...

view
to
easing the
economic
burden
the
Norwegian Laborites have thrown
a

country's

overboard

This

icy.
of

their

one

means

interest

low

the

pol¬
the abandoning
party's cardinal

tenets.

methods offered the only solution
to the plight into which the Labor
Government's

placed

the

postwar policy had

country

came

not

only to the party old
guard but also to the younger ele¬
ments of the party.
"Today's situation has resulted
from

bor.

And

over-spending

imports of

that

Minister of La¬

just the begin¬
ning.
The figure was cited to
support his assertion that "the
survival

depends

the

British

economy

restraint in wage de¬
the big unions."
But
the Associated Society of Locomo¬
tive Engineers is asking for a 15%
rise in wages for five groups of
mands

"The discovery that 'capitalistic'

shock

nounced Britain's

its

which

$150 million

would

the

National

Workers

$5.60 to $8.40
ground

Union

proposes
per

add

to the nation's

production costs; the Scottish
of

area
Mine

increase of
shift of under¬
ah

workers;

and so forth.
parliamentary
majority, the government is hesi¬

so-called investment goods. Other
factors are 'price-fixing' subsidies

Given

for

tating before taking drastic steps
to stop them—by deflation. In the

number of

social welfare
*See

this

author's

Unmanageable
Commercial
Dec.

15,

commodities, and
program that pro-

Managed

and

1955.

article

"Europe's
Money," in the

Financial

Chronicle

Experimenting with
technique of profit
ceilings, as the Low Countries do
again lately, will not help either.
But again, the restraints applied,
authorities.

the discredited

its

narrow

coming months, the Chancellor of

mild to

too

are

succeeded

ployment

much more

has

far in reducing em¬

stemming the tide of
over

confidence.

Europe's business due to
(nominal) profits, to say
nothing
of the record-breaking

sweeps

record

recklessness

Cabinet

coalition
no

means

unions

and

shaky

Adenauer's

shook

that

labor

Typical is the conflict

politicians.

last

overcome

month,

at this

writ¬

ing.
Federal

The

trade

Republic's dollar
68%
liberalized

only

(more so than the U. K., but less
some
other countries). But

than

otherwise, the German mark is as
good as fully convertible—on the
gold standard!—since a free gold
and

market
to

But

the

have

freedom
been

re¬

gold standard is

it is the legal frame¬
"game" that has to be

panacea:

work

played
it

the citizens'

abroad

invest

stored.

its

One rule is:

available
That

own

down."

"breaks

no more

from

exactly

comes

sized, "the nation faced

portfolios

crucial

reckless

the Exchequer (Treasury) empha¬
a

cause

than irritation. No government

members,

some

terprise and favor the worst kind
of
investments: those by public

in.

The
are

rules,
The

else

Number

credit than is

genuine
where

savings.

the

German

"rub"

banks'

filled with illiquid

Volume

184

Number 5550

commercial loans

.The Commercial and Financial Chronicle

684

company's backlog of $35,654,000

they have not

been—since 1929.
Almost all of «Included contracts with the Air
their liquidity consists of the Cash Force« and;
Navy
for
aircraft
reserves
which the central bank servicing equipment under which
forced them last fall to raise from

11% of sight deposits. 'The
German capital market being ex¬

scheduled

tremely

contracts

much of the industrial
,

•

would do

■

;
;•
f

the central

bank, the

non-governmentalized institution of its kind in Europe. Similar pressure is being exerted on

coffee,
the

tea,

30%

etc.)

by
the

about

with

months,

the

For

the

nine

the

might

"hard

Dr.

and

Ministers

resistance

Dr.

let

them

against

have

than

*. Aid. But if neither hope
izes

pretty
is

:.v

that

Company,

firm
Co.

name

Mr.

Building
of

under

Bundy

the

Securities

previously

was

Gross,

with Courts & Co.

member

the

H. Diffenderfer

Exchange,

Co.

Harry Adler is engaging in

Exchange,

Beekman

Street, New York City.

i.V

*-£>

I'm!

u>:

Kansas, member
of
Frank Carlson

the

He continues:
"In

finance

committee of the

United States Senate.

;

'; "■

we're^ paying for them
Paying for every mile we
travel or ship goods to market on our
inadequate, horse-and-buggy roads.
right

substantial decline of

ti e,domestic demand for goods in
J each individual country. Such

build

Frank Carlson of

far

requests

roads,-

That's', the

material- !

must

wage

ng our

not!"

fact,

now.

Experts figure that the overall cost of

}

real

a
•

recession

Europe

j scarcely fail to affect the Ameri¬

industrial

raw materials,
which would most

prices of

•

consequence

from,

and

dollar

area.

fewer

staggering costs
we pay!" •:

these—costs which

Look

"In
all

these

metropolitan
gas

figures

and

hours

man

lost in

are

going to and

"The annual toll of motor accidents

Alslyne, Noel

averages

Offer Consolidated
Van
•

Alstyne,

arsociates
3C 0,000

July

limb.

Electric

stock at

total

are

Co.

Corp.

offering,

being

and

milk

sold

"It
costs

share.

100,000

behalf

certain

Net
the

from

the

sale

shares for the com¬
will be a-ded to its general
corporate funds, and will provide
additional

working

Consolidated

Electric

Corp.,
and

with its executive offices
plant in Stamford, Conn., is

engaged principally in the design,
engineering
and
production
of

of record

move

that

household effects

of miles

them to cities hun¬

away.

operating outstate must install

pared with

every

as com¬

18,000 miles for firms

operating
"As

we can

traffic-jammed
see,

bad roads

cities.
are

bad

business. The waste of time and money
is needless and, frankly, dangerous to
our

economy,

our

lives,

and

our

specialized lines of aircraft serv¬
icing and testing equipment and
electrical generating equipment.
It

also

manufactures

allied

products, including electrical and
mechanical

equipment,

pneu¬

matic and hydraulic testing

ment,

and

All of the
:

the

past

equip¬
pumping equipment.
company's sales during

several

rently have been
Forces, except for

years

to
a

and

the

and

testing

minor

servicing

equipment,

operation

Armed

than

speed
from

cities

can

mean

local

Institute of Traffic

streets.

greater

trucks. And
travel from

million

our

farm

and
a
imple¬

ments
which is presently
being
liquidated. As of May 31,1956, the

will

tomorrow

cars

even

today. And

roads must be, too!

our

people

since

the

number

today's 60 million to 80

by 1965.
now

40,000-mile

inter¬

heartily support

roads

National

with

Great Lakes

Detroit, Michigan, and WeirWeirton, West Virginia—

major supplier

cars.

Steel—through two

major divisions:

ton Steel at

of the

better,

stronger steels used by the automobile
manufacturers.

constant

our

goal—through research and
ation with the automobile
to make better and

still

More and better roads

better

constantly improved

Steel at

Senator Carlson points

Completion of

our

For

than 85 percent

for

action

of its

city to city by

vital,

We at National Steel

by truck, and 75

from

cars

better than the

tonnage is moved by

registered motor vehicles using our
streets and highways is expected to
soar

the

National's role

highways."

Action,

introduction of life-saving, accidentpreventing innovations. This means

substantial

are

of all food products reach

percent of all

out,

consider that approximately

first market

is via

times

savings

85 percent

their

was

"These

when

half

Los

gasoline

average

freeway

traffic-packed downtown

percent of all

be eliminated if higher

through-traffic
slow,

and

two

than that

that

economy

cooper¬

industry—

better steels for

safety,

greater

strength

and

and trucks of today

cars

and tomorrow.

separated

movements.

The

Engineering at the

University of California estimates the

savings in cost of travel

on express¬

States with

cities

the

people)

SEVEN GREAT DIVISIONS

United

then 50,000

WELDED

INTO ONE COMPLETE

STEEL-MAKING STRUCTURE

will do much to meet this need. But

Great Lakes Steel
a

great deal

must be done at

the state, county and local levels to
handle

our

growing automobile and

truck traffic.

As is well

Steel

Company

•

Corporation

Ilanna Iron Ore Company
Product*

Company

Corporation

•

GRANT BUILDING

•

National Steel

The Hanna Furnace

CORPORATION
PITTSBURGH, PA.

Weirton

National Mines Corporation

known, the automobile

NATIONAL STEEL

•

Stran-Steel Corporation

small volume

of generator and aircraft
•

cur¬

What better roads will

our

through continuing research and the

highway system (main highways
connecting 42 state capitals and 90

"A great deal of the traffic turmoil
in

industry is making tremendous strides

state

national defense."

survey

on a new

And trucking

clutch every 50,000 miles

passenger

hour for trucks

buses.

mileage

capital.

Diesel

by traffic slowups.

few miles in downtown Manhattan

new

100,000

pany

for delivery

pay

matter

firms

selling stockholders.
proceeds

incurred
is

dreds

being sold for the account of

are

;

goes

than to transport

of the company and 200,000 shares

bill

delays

common

per

City, for example, it's
$1,000,000 of the annual

per

Angeles

York

estimated

offered
Consolidated

price of $8.50

the

si ares

vehicle, and

a year per

Family budgets suffer, too. In

'/ New

Diesel

■

Noel

$75

that doesn't include loss of life and

hour for

"And it has been shown

Diesel Electric Stock

and

billion 1

one

at $1.35

vehicles and

consumed is burned waiting

from work.

Van

ways

25 percent of

areas,

for traffic to move,

the |

to,

break that figure

have such

cer¬

imports

exports

down

the

tainly be affected.
Moreover, a
European recession means relatively lower prices there, with the

'•

And when

year.

markets, if only because the *
! Old World is a large-scale buyer

half and four billion dollars every

can

;•

traffic congestion is between three and
a

could

a se¬

curities business from offices at 5

partnership in the firm.

for

pay

Harry Adler Opens

July 13 will admit Charles H.

Detroit

opened

Michael L. Harris. Mr. Diffender¬
fer
was
formerly President of

Fifth

509

stand of Senator

bone, which presupposes an
appreciable measure of unemploya

of the New York Stock

econo-

the

ipent and

Gross

Avenue, New York City, members

Federal

whether

trim the

Gross Co. to Admit

securities

business from offices in the Atlan¬

them

answer

Almon

—

better,

,sharp effects, is the question. The
as

Ga.

Bundy is engaging in

"We'll

expect a further
tightening of the European credit
reins".
How far, and- with how

Almon S. Bundy Opens
ATLANTA,

and

has

branch office in the Fidelity
Building under the management
of
Harry
H.
Diffenderfer
and

■

York

Exchanges,

Washington, D. C.

au-:

soon,

safe

Stock

New

something will;
have to be done, indeed.
" ; -■ ;T..
It

HARBOR, Mich. —
Roney & Co., members

the

authority tells how much obsolete roads are costing,
and what we should be
doing about it now.

the-"

war:

refresher

in the securities business.

engage

Erhard,

] mies. And they wait for Congress;

*! to

'!f'u

BENTON

Wm,.

offices at 110 Madison Avenue, to

share.-

per

Peterson

partnership, with

symbolize
what the

over-bubbling

78 cents

formed

was

are

in America, just enough to bring
down a bit the raw material prices!'
I and to "put the fear of God" into -

■'

thorities hope for a neat little re¬
cession (but no depression; please)

own

Chetkin and William A.
have

income

net

ended

•i

$902,108,

con¬

$19,-

were

Wm. C. Roney Opens
Branch in Benton Harbor

AMBOY, N. J.—Leonard

were

Hoping Against Hope

their

PERTH

pres-

Silently, Europe's monetary

and

Chetkin & Peterson Open

across

popularity

who

German public fears
anything else, except
danger of inflation. ;

sales

For

money"

lost—if

Schaeffer

two

the

$620,834,

July 31, 1955,

net

455,956,

Air

months

solidated

now

over

income

54 cents per share.

Chancellor

the side of the

groups,

battle

the

With

beard.

lined up

$27,026,000
for
delivery

net

the year ended

April 30, 1956, the company and
Finance,
who
its wholly-owned subsidiaries had
over-balances the budget, and the
Minister of Economy who- pro- consolidated net sales of $17,201,poses to reduce all import duties -"
(other than the "fiscal" ones on
Minister

not for the tremendous
,

and

one

only

sure
t

expansion,

if their cash hold-

and

equal

Force,
Army Corps
of Engineers and
MarineCorps -for
generating
equipment under which a balance
of $5,642,000 is now scheduled for
delivery over a period of approxi¬
mately one year.

ings were permitted to be cut.
Hence the pressure from all sides

the

;

period

the banks finance

narrow,

balance

(191)

and Financial Chronicle ;w Thursday, July 12, 1956

The Commercial

<192)

the

midst

recurrence

By OWEN ELY

<■',

Washington Gas Light
Washington Gas Light Company

with Columbia Gas System,

tract

and other improvements supplies natural gas to a popula¬ savings would be realized if rela¬
results are
the road's reorganization tion of about 1,550,000 in the Dis¬ tively uniform monthly purchases
of gas could be made throughout
to loss of traffic due to the strike have been cited as the reason for trict of Columbia, and in nearby
the year, with substantial quan¬
in the Birmingham, Ala., mills of the need of the road to sell $19.5 Maryland and Virginia communi¬
tities of gas stored in the low de¬
U. S. Steel which has been in million first 4s last year to re- ties. Because of the comparatively

is
of

Francisco

Utility Securities

pos¬

'V...
The Capleville and Tulsa yard
projects will cost together some
$15 million and the outlays for

sible.

McKEEVER

St. Louis-San Francisco Ry.
Louis-San

made

has

dieselization

that

St.

Public

City, Kap.) and Kansas City, Mo.,
yards to provide for more effi¬
cient handling of the longer trains

4-t*i » »

The

yard and .improve¬
Rosedale ^(Kansas

the

ment

By GERALD D.

Tulsa

the

The

year.

slump in earnings which has
been a periodic characteristic of
this road.
The present situation

present year's poor these
attributed in some part since

naturally a matter of concern
the stockholders, and particularly to holders of the common

small industrial development and

which

capital,

working

plenish

progress for several weeks. As
long as the local strike continues

mand

for use in the win¬

seasons

heating months.

house

ter

latter, it should be added, is now heavy Federal Government em¬
Construction
expenditures
in
anyway, the Frisco may not be ample.
However,
an
equally ployment, revenues are about 72%
stock who now have seen it de- greatly hurt by the industry-wide cogent
reason,
and \ whicb nas residential and commercial with 1955 were at a record .level of
cline from 33 to the low of 26% this strike that began July 1, although never been featured for some rea- heating, 17% residential without $13.4 million, requiring the issu¬
heating, 8% commercial without ance of $4.8 million common stock
year, with only a minor recovery this will also affect lesser steel son, may well have been the cost
subsequently.
The
road's
pre- plants served by the Frisco.
of
acquisition
of
Central
of heating, and 3% public authorities and $8 million bonds. In March
ferred
has
shown
a
somewhat
The crux of the matter with Georgia preferred and common and miscellaneous. About half the 1956 $5.9 million common stock
was
again issued
(on a l-for-8
greater
relative
buoyancy
al- current earnings, however, is that shares, the holding of which was gas load is in the District of Co¬
though this issue is down some the Frisco has not been able to carried on the road's books at lumbia, but sales in the residential subscription basis) with the bal¬
to

five

trim expenses in line with relatively depressed revenues. The
latter showed
an
increase of
$627,000 for the first five months
doubt, by interest of this ?year whereas operating

points from the 1956 high of

91V2.

fairly well
protected preferred stock has rebounded about 50% from its low
However,

of 81,

aided, no

this

the pending exchange
holders
would

expenses were up about $2.1 million. At the same time favorable

offer by
receive

which

comment is due that the road has
not tried to cover up current difficulties by reducing maintenance

equal par value in 5% income debentures

plus

share
preferred

one-quarter

for

common

each

outlays.

share.

charge

This

made

was

issued

at the rate of 30.9% of gross for
the first five months of this year
as against 30.5% for the corresponding 1955 period.
In spite of dieselization, complete since 1954, and generally

increasing the
outstanding amount of the common to 1,908,232 shares, or an increase of less than 9%, two bene-

improved operating efficiency, the
road's' transportation and . other
costs have mounted disproportionately. This, of course, is attributed
largely

ever,

Since

The

the

sluggish

stock could be due in

common

this

part

action

market

prospect

dilution

but, if so, this attitude is ilLconsidered.

While

common

under

154,009 additional

this

would

plan,

would

obtained.

the

;

the .road's

interest

its

Federal

tax

months of this year.

resulting $1,601 600

tax

ger fare increase of May l

the 52%

would

saving

amount

84 cents

great

too

The

passen-

importance

is not
the

K a'c„on;hE increased number
(1,908,232) shares that would re-

over-all result Frisco passenger
since represent
revenues of the

suit.

only about 4%

Secondly, this plan would avert
a

greater

degree of potential disince the 616,038 shares

lution,
of

preferred

designed

which

plan

eliminate

vertible into twice
of

the

This

common.

many

standing

con-

shares
that

means

under present conditions

the out-

could

common

in-

creased from
1,754,223 shares to
2,986,298 shares by the conversion
of the preferred alone, and dis-

regarding for the
present

prior

discussion

dilution

the

4%s

road's
the

of the

purpose

the

$26

potential
conversion

million

rate

income

of the

this

favorable

One estimate

ferred
tne

the

pre-

annually

which

indicate earnings of $6 per
more
and would place

$13.6

net income

million.

would

upwards of

latter

equivalent to
the

2,986,299

which

common

standing

preferred

.sumed $6 per
ttmuM

The

$4.55 per
shares of

would

full

figure

out-

conversion

instead

the

of
as-

share earnings. This

Hi 1,,+s™

~4.

thl 1Jr

about

fhird
onethird, anH the pending plan, which
and

th.^hl1
thus be

highly

f'gures

to be

prove

the

therefore

inclined

fs attributable nrnstlv°tn°the
attributable mostly to the
is

set-back

thus far
the

road's

earnings

the present year. For
five months gross rev-

first

enues

the

were

only 1.1% over
those of the corresponding
1955
period
and
net
income,
down
25.4%, amounted to only $1.12
per common share against $1.76
xor

the

first

five

months

last

(Special to the financial chronicle)

; .

Columbia Sees. Adds

(special to the financial Chronicle)

MIAMI, FLA.

margin

for

error

joseph J. Wilensky have been
added
the staff
Columbia

t0"

3898

under

come

point.

question

this

appear

this

premise

Frisco

at 28, is attractive, yield-

common

ing 7.15% and selling at less than
times estimated earnings.

From

there

are
of

longer-term standpoint
several . elements in

the

cent years

the

first

done

better

re-

af to tSe trlnds of both

and traffic than either

revenues
ern

Frisco

it is essentially a growth

having

toto

district roads.

the

Joins Bache Staff
ST.
.

On the expense

t0,Q;?ile,S,uPer lre'®ht

this

for

the

67%

increase

efficiency factor

since 1946,
1954. Further

completed in
improvement in this over-all
was

firiency

factor

may

ef-

expected

from the completion of the modern

Capleville (Memphis, Tenn.) yard,
the

enlargement

and

Chronicle)

PETERSBURG, FLA.—Don-

„

...

^?Sa J

®ache & Co., 556 Central Avenue,
?er,was f°rmerly with Goodbody
& Co'
(Special to The Financial Chronicle)

SAN MARINO,
,

CALIF.

Musa

—

2394 Huntington

Drive Mr. Miller was formerly
Wlth J- Logan & Co-.

automation

Joins Henry Hartman

1950

1945

10,434
7,059

1940
1935

v—

6,020

1930

SHERMAN OAKS, CALIF.

Sjdnev

HXv

ioined

has

Beaumont

Hartma

the

13531

52,230
-

36,641'

Chronicle)

—

ratio

price-earnings

•li

Co.

Offering Underwritten
The Yale and

and

space-heating,

for

gas

service
for
both

Towne Manufac¬

area

gas

were

space-

held

record

(EDT) on July 23,
offering is being under¬
by a group of investment
headed by Morgan Stanley

3:30

6, 1956.
will expire

July

The subscription offer
p.m.

1956. The

written

Proceeds of
the sale will
be
purchased from the Columbia
System under a contract ex¬ applied to Yale and Towne's cur¬
piring in 1970, but stand-by oil- rent program of expansion of its
gas facilities are maintained for materials handling equipment
peak shaving and emergency use. production facilities estimated to
The wholesale cost of natural cost
approximately $7,000,000.

to the company has increased
substantially in recent years. To
avoid the delay incident to bring¬

gas

Joseph R.
r._

O'Connor is now with King Merritt & Co., Inc.

Yale

and

Towne

manufactures

materials handling

equipment,

locks,
builders'
hardware,
and
retail charges
powdered metal products.
Yale
for gas to reflect changes in the
and
Towne's materials handling
wholesale price, a "purchased gas
equipment is now produced not
adjustment" provision was em¬
only in Philadelphia and Chicago,

ing about changes in

company's
rate
but also in plants in Canada, Eng¬
March 1, 1954.
land, and West Germany, and by
Thus increases or decreases in the
licensed
manufacturers in other
cost of gas to the company are
countries. Other Yale and Towne
now
reflected in retail charges
plants producing locks, builders'
30 days after they become effec¬
hardware, and
powdered metal
tive.
While there were three in¬
products are located in Connecti¬
creases
in
the
wholesale rates
cut, Illinois, Michigan, Tennessee,
during 1954, none of these had a and
Virginia in this country, and
material effect on 1954 or 1955
in
Canada,
England, and West
earnings because of the adjust¬
Germany.
ment provision.
The company is developing an
the

bodied

schedules effective

■

explorations and studies through¬
out 1955 continued to give favor¬
able evidence of the feasibility of

Irving Citron Partner j .
In May, Borg & Co.
Irving Citron has |been admitted

partnership in May, Borg &
Broadway, New
exploratory
wells may be re¬ York City, members of the Ameri¬
quired. If the Brandywine field can Stock Exchange. Mr. Citron
is found suitable for storage, the was
formerly an officer of Glick
undertaking,

step will include

acquisition

underground storage

for

facilities

withdrawal

quire

the
gas;

injection and
and, finally,

of gas into

years
The search for an

storage

the storage

These steps would re¬

several
field

additional Company, 61

but

this

sandstone.

With King Merritt
PONTIAC, Mich.

the

Yale & Towne Mfg,

rights from property owners; con¬
struction of a pipeline and other

Ventuia Boulevard

(Special to The Financial

past 104 years.
the 12 months
ended March 31 were $3.22 based
on the increased number of shares,

the postwar

injection

venlura Boule'ara-

and
little over 5%.
paid dividends

period revenues turing Co. is issuing to the holders
increased 210%. Since 1950, therm of its capital stock rights to sub¬
sales
for
space - heating
have scribe at $24.50 per share for 269,gained 121%. At the end of 1955, 204 additional shares at the rate
52% of the 348,366 meters served of one share for each seven shares
In

of additional

(SPeciai to the financial chronicle)

?tafr

39 Vz

dustry average.

L- Miller has joined the staff of
Allen E. Shaw,

$2 to yield a
The company has
in each year of the
Share earnings for

been

has

stock

pays

327,936
190,488
114,077
84,402

underground storage project
in
Brandywine, Maryland. Geological

With Allen E. Shaw

Southwest-

?SS,
train hour in 1955, although diesetization, which was largely the
reason

Inc. of Florida,
Boulevard.

(Special to The Financial

seven

favor

Co.,

Biscayne

wide

safety of this rate does not
to

Gary Fellner

and

the generous side,

kG Kthat the#PJ?0.r current side the road has shown another
mon
moni

AJJ-

ir;

common

Gas

MINNEAPOLIS, Minn.—Charles

in relation to the $2 dividend rate
on
the common stock that the

Class

are

The

are

lnr

vo., inc.

Jonn rvinnara /-\aas

Securities

Even if these predictions should

$4.40 and $4.17 re-

were

spectively.

road

^Cn

minoi> Kenaan

now

are

outstanding.

firms
heating and water-heating.
All
natural
gas
requirements & Co.

f & Seaver, Inc., 15 Congress
MiW

offering
1,345,982 shares

(Thousands)

equipped

„

appr?ya1' cou-}d Place,
favorable for the

thneJ0"?,.™" 1" P^r!"f'.ng the possibility of such

,,r.

...

In¬

equity.

12.3, which is well below the in¬

company's

George W.

—
.

there

and

during that year over 95% of all
individual
homes
built in the

n]^a<L 1Sa n?W

in net. The latter would then be
equivalent to $4.75 per common

at least

pay

road

the

were

per

snare

the

would be converted unless

common

would

part

Mass.

stock

Therm Sales

$43,967
22,835
14,218

used

indicates

Ict°™01lper $1,000 however, that share or $4.50 available "aRer
Of the bonds funds." The corresponding 1955
is to be
assumed,
substantial

Corporation,

Hobbs Co.

past

1955

highly competent source F. Mark has been added to the
a $6.6 million increase staff of John G.
Kinnard & Co.,
in revenues, or 5% more than 133 South Seventh Street,
those of 1955* and a $600,000 gain
i/!-,;, :t :
_

from

BOSTON,

common

(Thousands)

Year"

(Special to The Financial Chronicle)

„

38%

Revenues

with

connected

tabulation covering the

ing

ith vickers Brothers.

year.

estimates have been made of the
full year's results in spite of the
fact that these are rather greatly
at variance with what has been

reported thus far.

securities

supplied by Washington Gas

25 years:

80 Federai street. He was former-

Joins Wise,

rather optimistic

consequence,

whitehall

total.

Aside from the effect of the
steel strike on the road's Birmingham traffic, territorial conditions are understood to be relatively

Rados

Dec.

selling recently around

v'/.v v.''.;-'.''; 'v;;* T
rapid growth of the gas
business is shown by the follow¬

the
company
District of Co¬

The

the

capitalization as
31, 1955
approximated
$92.4 million and consisted of 52%
debt, 10% preferred stock and
The company's

Light.

place, the road would reduce
income by about $1.6

rate

the

loans.

raised through bank

cluding the recent stock

now

taxable

charge.

1954,

only

of construction requirements

ance

liquidation of subsidiaries in 1953,
all of metropolitan Washington is

granted last year which the road land subsidiary, has; been
the
places at about $5% million on source of speculative flurries in
million upon complete acceptance an annual basis. While the freight Frisco common,
of
the
exchange by which the rate increase of March 7 seems
.
^
\ ^ :i
$3,080,000 annual dividend on the to cover the wage* increases on iWlth Whitehall Securities
«>% preferred would be replaced
an annual basis, the Friscofelt
y (special to the financial chronicle)
by an equal amount of interest the
squeeze
in
the first two
RnoTnN
Anthnnv

first

and Maryland
in
importance.
in total

increase

lumbia, whiles wholly-owned sub¬
sidiaries supplied gas to the areas
in Maryland and Virginia.
How¬
ever, as the result of mergers and

this

Prior
served

other Southern roads en masse.
No discussion of the Frisco is
complete without some mention
of the possible "kicker" in its
50% holding of New Mexico &

increase

wage

increasing
1930 the

population served has been about
960,000, or 163%.

Arizona Land stock. Exploration
is under way by several groups
without known important results
to date. From time to time, how-

fits

are

Virginia

areas

$16,152,000 as of the 1952 yearend. These holdings and subsequent purchase are sufficient to
give the Frisco voting control of
the Central of Georgia, and the
access to the important Atlantic
port of Savannah afforded by the
latter has- favorable long-term
implications for the Frisco. The
application to exercise this control is pending before the ICC
and is naturally being opposed by

Co., Inc. and prior thereto was

&
a

partner in Jay W. Kaufmann

New

members

Co.,

underground

Stock

from

the

growth of the househeating busi¬
ness.
Because of the monthly de¬
mand charee Drovision of

the con¬

Butler, Wick Branch

SALEM, Ohio—Butler, Wick

to complete.

resulted

Co.

Exchange,

the
have

opened

branch office at 192 East State
under
H.

the

New York
a

St.

management of Robert

Bowman.

Volume 184

Number 5550 v.

The Commercial and Financial Chronicle

Continued from page 5

Reynolds & Co. Opens
Reynolds

The Immediate Tears Ahead?
year, although they are below the way program, it is far and away
peak fourth quarter because of a the greatest public works program
decline in the length of the work in the entire history of the world.

let

conclusion

talk about

(4) Industrial production, while peace—for no condition more af¬
a
little
below
the fourth fects our future economy, our
our very
quarter of last year, for the first future happiness and
v<.
five
months
of
1956
averaged lives.
also

the

above

5V2%

months

same

Conclusion

ago.
Manufacturers'
sales
reached a record rate in May, on
year

;

reports of fighting in Korea and
saw pictures of its havoc.
In many
(5) Retail sales are also at a a family circle there was a vacant
high rate, With the gain for the chair..;
"
first five months of 1956 being
Then on July 27,1953, came one
nearly 4%.
Sales of nondurable of the most
electrifying messages
goods stores set a record, after of the last four
years—the news
seasonal adj ustment, in May.
flash that President Eisenhower
,

are just a few pulse-beats had
stopped the war. I do not be¬
prosperity, which our econo¬ lieve there was a man or woman
mists and statisticians at the Com¬ in our land whose heart was not

These

take

Department

month to month.
Now

;

the rest of

word about

the year.

from moved
t V, ■ igiving.

;

:...

usual

thanks¬

and

;v;'V'

Since

then

Secretary
in

The

relief

the

their

President

State

Dulles have left

The Next Six Months

with

Allen

office, at 19 Con¬

John

Foster
to

ease

and in NATO countries.

The nation is building for the
America

of tomorrow.

New

con¬

struction put in place is expected
to reach a record-breaking $44 V2
;

billion.this

Prospects

bacher & Co. and Bill Richards &

Co. In the past he was with Boett-

cher and

Company, investment

Company in Denver.

Joins J.

With Powell,

(Special to The Financial Chronicle)

other

leading security and
MIAMI, Fla. — Columbia Bond
commodity Exchanges, offers a & Share Corporation has been
full range of services to investors. formed with offices in the Ainsley
In

LOS ANGELES, CALIF.—David
now with J. Logan &

B. Shanks is

Co., 2115 Beverly Boulevard.

& Co., members of
York Stock Exchange

New

and

addition

acting as brokers, Building to conduct a securities
the firm is a major underwriter business.
Joseph A. Ray vis is
of corporate and tax-exempt se¬ president. Mr. Rayvis was former¬
curities.
ly with H.
Hentz & Co. and
Francis I. du
the

Private Placement
Lemon

Co.

Union Securities Corp.,

nounced

have

vately

July

placed

Logan Co.

(Special to The Financial Chronicle)

10,

Co.

his

conducted

own

PASADENA,
erick

CALIF.

Richardson is

Powell, Johnson &
Security Building.

—

now

SAN

FRANCISCO, CALIF.

JERSEY CITY, N. J.
Kiken

conducting

—

New

L... Jamieson, Co., Inc.,
Building.
"* ^
'

Harold

securities

Morris

Russr

Joseph

Morris

Joseph, limited partner
business from offices at 31 Dan- in Farrell & Co., New York City,
forth Avenue.
passed away on June 27th.

na¬

American-Marietta

aic^to,. maintain their liberty and
to strengthen

United

construction and in¬
dustrial and commercial building

their economies. The

United

public

will

with

higher,

vent

equipment

plant and

has

supported the

Nations in efforts to pre¬
border
incidents
between

residential Arab states and Israel.
^

building down moderately.
New

States

ex¬

hower

are

President

Geneva

Eisen¬

the gratitude and the

won

have been leap-frog¬
respect of mankind by his sincere
ging higher each quarter since efforts to plant goodwill and hope
spring a year ago. The outlay for
among
nations embittered and
penditures

1955

$28.7 billion and by the

was

second

quarter of

estimated

with

billion,

$34.8

this year
annual

was

rate

afraid.

investment

schedules reported by business in¬

Yes,
neva

Even

the

record-breaking 6 months

leaders

Soviet

convinced of his sincerity.

were

some

of the dreams of Ge>-

have faded.

But its

sales climbed

spirit in¬

fluences statesmanship today more

further rise to an an¬
than do the suspicion, hate and de¬
nual rate of $36.7 billion in the
spair so widespread before Presi¬
third quarter.
dent Eisenhower went abroad.
In
other
Words,
far-sighted
In such a perilous era as this we
businessmen and businesswomen

dicating

are

confident of increased op¬

cannot lower our guard.

continue

maintain

We must

the

most

portunities in the years ahead that
powerful military force on earth.
they are planning to boost their
For our atomic might
and the
expenditures for new plant and
united
strength of our partner
equipment in the summer months nations are the
great deterrent to
to the all-time record annual rate
war. We must not misread history
of $36.7
billion.
All over the
or be misled by false-front smiles
country you can see the bricks
and double talk. All this precau¬
being laid and the new machinery
tion is necessary to our survival.
being set up in factories—all in¬
But there are rays of hope. We
dicative of job opportunities ahead.

*85,950,601

earnings

Increased

know that all-out nuclear

What Capital Outlays Mean
I ask you

Does

this $64,000 question:

horrible

that

both

war

victor

and

vanquished alike could perish in
smoke

and

blood—and

that

to *5,745,369

this

possible
that
bard-headed business management grim prospect stays the hand of
We know that all
would
invest
such
tremendous aggression.
peoples — even those behind -the
sums if they did not feel confident
seem

that there will be customers with
the cash

and

credit

buy their

\yares when these new factories
and plants are in operation?
The Eisenhower Administration

has faith in America.
the

best

We believe

of your life are
trying to build a
better America—for you and your

ahead.

days

children.

are

To that end

have in

Iron Curtain—want peace.

not

a
wasted, futile
rewarding quest to
justifiable disarmament, open
sky inspection or any other sound
plan that can lessen the possibility
of fighting.

but

seek

American-Marietta's Semi-annual Report contains

background information
for growth and

Four years ago

the outlook was
bleak; the thunder of the guns in

number

the

Eisenhower

uted most to

will

the President of the United States.

the Commerce
Department, including the Presi¬
dent's highway program which we
already have started in high gear.
Not only is this the. largest high¬

sincerely

expansion. A

copy

of "What the

From

the

sent

those requesting

the Report,

FREE Copy

6 Months Report
Sent

Request.

Write Dept. 9

this great change is

programs
to promote business,
science and transportation are the

responsibility

the Company's policy

Highway Program Means to American-Marietta"

a
great program, de¬ goodwill. Today no American sol¬
signed to meet the needs of our dier is dying on any battlefield
growing population in education, and the, chorus for peace swells
in health, in safety and in busi¬ throughout the earth.
ness expansion.
The world leader who contrib¬
A

Korea drowned out the voices of

progress

bottom

believe

that

heart I
the one

rilrflr

world leader most able to advance

Dwight D. Eisenhower.

AMERICAN-MARIETTA COMPANY
,0t EAST ONTARIO STREET, CHICAGO 11. ILLINOIS
Revelations In Progress Through Modern

freedom, justice and peace among
all
peoples is that
same
man,
FAINTS

•

RESINS

•

CHEMICALS

—

Frederick C. Broggi is now with

Harold Riken Opens

pri¬

with

(Special to The Financial Chronicle)

in¬

and

State

Fred¬

Powell, Inc.,

H. L. Jamieson Co. Adds

and

vestment business in Miami.

was an¬

$10,000,000

past

Font &

Johnson

(Special to The Financial Chronicle)

tions, emerging from colonialism
to independence, have been given

are

that

year.

Morgan & Co., 634 So.
Spring Street, members of the Los
Angeles Stock Exchange. Mr.
Tucker was formerly with Schwa-

bolstered both in the Pacific Area

'V;;o:r

;

ated with

Columbia Bond & Share

Reynolds

Loan
&
Finance
Corp.
4%%
world
tensions, spread internamay slow some lines of business tional
friendship and build a solid promissory notes due June 1, 1971.
activity a bit in this quarter. Of defense of freedom.
course, the steel: situation is not
Patient American diplomacy and
yet clear. But unless steel output
a
new
sense
of
responsibility
is so curtailed that it will seri¬
among free world nations have
ously reduce operations in steelsettled long-standing differences
consuming industries, the prospect
over Trieste, the Suez Canal and
is bright that business in general
Iran oil.
Collective security was
should continue at a high level in
the fall.

assets

Street, will be managed by bankers, of New York City, origi¬
In Ridgewood, nated and negotiated the above-,
Robert Eichler will supervise the mentioned transaction.
office, which is located at 40

doldrums

summer

the

has

gress

Johnston,

and

stone Unturned

efforts

ceaseless

cash

Inc.

Edward S. Munro.

the

ert D. Tucker has become associ¬

Industries,

purchased for

merce

Houdaille

Wales-Strippit Corp., North Tonawanda, N. Y., manufacturers of
punching and other machine tools.
senior partner in the firm.
The The sales of Wales-Strippit are
new offices are located in
Boston, reported to be at a current rate of
around $5,000,000.
Mass., and Ridgewood, N. J.
Boston

Morgan

LP? ANGELES, CAL^F<—Rob¬

Co.,
nationwide
investment banking and broker¬
age firm, on July 10, opened its
38th and 39th offices, it was an¬
nounced
by Thomas F. Staley,

The

;

(Special to TheFinancial Chronicle)

Chestnut Street.

the

For three years we all read

seasonally adjusted basis.

Tucker With

Bankers Negotiate

Two New Offices

Will Good Times Continue in

week,

(103)

•

METAL

POWDERS

•

HOUSEHOLD

Research

PRODUCTS « BUILDING

MATERIALS

The Commercial and Financial Chronicle

(194)

Continued from first page

ploy men t

Consequences of Steel Strike

Economy's Current State:
Output, Steel and Inflation
quarters

fourth

the

between

billion

$1.6

will

ter

likelv

unless

the

are willing to discuss a
considerably shorter than

four years and four months,
it not produce a more or less
contraction

ous

the

billion in the third quar¬
to $15.3 billion in
the first quarter of 1956. Govern¬
ment outlays on goods and serv¬
ices increased only from the an¬
nual rate of $75.8 billion in the
of $17.2

ter of last year

third quarter of last year to $77.4
billion in the first quarter of 1956.

increase

The

spending

non-agricultural industrial plant
and equipment accounts for near¬

half

Product

first

the

increase

the

National

Gross

between

of 1955 and the

the third quarter

quarter of 1956.

Will Capital Spending Hold Up?

The greatest economic question
the

before

today

country

last February.

projected

however,

•-ifferences,

small.

If outlays

plant and equipment in the
third quarter fail to come up to
the
projections
(as
well they
might), that will mean simply
slight delays in executing plans
and, in all probability, larger ex¬
penditures in the fourth quarter.

And if

a large part
of the planned

the third place,

most)

(probably

plant and equipment
has been planned quite indepen¬
dently of short-run movements in
consumer demand.
Much of the
outlays

spending is the result of techno¬
logical change and represents the
purchase of new equipment that
embodies technological improve¬
ments.
This is true of the huge

of the

reversal

downward

residential

move¬

construction,

whether outlays

plant and

equipment will turn down before
there
is
much
improvement in
other

forms

spending,

the drop in plant and

that

equipment

will precipitate

spending

gen¬

recession.

eral

will be

that

are

there

good upturn in outlays

ahdi residential
building before there is a drop in
spending by non-agricultural con¬
on

consumption

for plant equipment.

cerns

two

are

general

conclusion.

early

drop

There

for this

reasons

the first place,

outlays

plant

and equipment is in

true of much of

and

steel

spending

equipment by oil companies,
companies, aluminum com¬

panies, paper companies, and ce¬
ment companies.
recent

business man¬

years

agements have rapidly been learn¬
ing the advantages o£ basing in¬

carefully

vestment programs upon

plans

development

considered

which take account of long-range
in technology and in mar¬

trends

in earlier days

sensitive
ness,

spending,
highly
fluctuations in busi¬

investment

Thus

kets.

which

was

is tending more and more to

ignore such fluctuations. As a con¬
sequence,
investment- spending,
which was formerly an important
cause
of business fluctuations, is

struction.

influence.

second

There

believing
outlays
is in

several

are

that

early

for

reasons

drop

plant and equipment
In the first place,

prospect.

contract

for

awards

becoming

gradually

The change in the na¬

ture of business

planning is

several

why the

reasons

ness

The

„

Residential

corresponding

even

year,

there is considerable construction

ahead.

Contract awards for

residential

construction

non¬

states during the first five months
of 1956
were
$6,129 million, in

comparison
last year.i
In

the

with

$5,192

place, non-agri¬

business

definitely

million

concerns

planning

are

increase

their outlays on plant and equip¬
ment
during the third quarter.

The

increase

rate of
,

from

annual

$34.8 billion in the second

quarter to $36.7 billion in
quarter.
Experience

the

third

shown

that

for

are

actual

when

the

has

estimates

only one quarter ahead,
expenditures turn out to

quite

to the projected
In the first quarter of 1956

ones.

actual

expenditures

were

less than those projected

tober,

and

contract

awards

looks

little

last Oc¬
actual

construction

in the last
will be $20 billion

vate)

seven

(public

and

months

in contrast

with

pri¬
1956

$18.9

last

year.
(Releases USDL 1635,
1956, and USDL 1645 June 21,
But the estimates of the Depart¬
of Commerce and the Department

June'12,

1956.X

of Labor cannot be used in

general
assume

estimating the
economic outlook because they
"that the current high level of

over-all

relatively
estimates
tion

the

Residential

1956.
11

far

western

building in the

states

not

covered

by the figures is not doing
as

But

spending
&peiiunig.

but

though

—

As
r\.s>

soon

the strike, and

strike
sirmt;

the
uie

some

ditures

the net gain for the
whole will be modest.
gain is indicated.The

sonal

expen¬

favorable because per¬

are

incomes

are

rise during the
1956.

two reasons:

investment

certain

almost

closing months

incomes

Personal

will

rise

for

(1) the high level of
will

sufficient

absorb current savings by indivi¬

over, however, spending returns
quickly to normal.

concerns,

Effect Upon Employment

prolonged steel strike

that

economic

stable."

activity
In other

assume

trying

are

answer

will

remain

words,

these

the

ques¬

answer,

rise in payrolls.

In ad¬
of 1957

-Unemployed-

May

1,602

1,306

June

1,818

1,562

incomes.

are

other

inci.

1953

1,930

122

3,192.

1,942

1,548

150

144

5,894

5,904

1,240

130

170

4,872

4,622

June and
of

months

the

much

The

strike.
the

employed but not at work in
July and August of both years for
were

the comparison
1952

1953):

indirect

August,

months

strike

July,

months

and

May

the

with

the

with

indicates

the

biggest difference is
of

number

em-

persons

ployed but not at work for miscellaneous reasons
(which included
industrial

in June, 1952,
This difference,
however,
is
little
more
than
enough to account for the 560,000
workers directly involved in the
and

dispute)

June,

1953.

There

strike.
sonal

jump

was

contra-sea-

124,000

unem-

was

due

largely

to the prevalence of vacations in
these months.

desir-

observe

and

what has happened to prices dur-

upswing.
n* e hearings of tne Joint-Com
on
the Economic Report

mittee

inflation

value

Secretary

Burn¬
*—-1
long trend

the

'that

the

dropped

dollar

has been halted."

haps

1939

Secretary

the

from

100

cents

But: per¬

Humphrey

spoke

The accompanying table

soon.

*h„e eourse °f P«ces during

the last two

index

years.

has

been

the

negligible
price

consumers'

last

two

but
though
small, has not been negligible. It
the

rise

the

last

years,

year,

has been a little more than 1%.
If the consumers' price index
.

varies

down by this amount

up or

from

year to year, there is * no
netd for concern.-But if the con-

fol-

sumer price index moves up more

inventory boom. An
inventory boom is likely to follow
a prolonged steel strike this year,
Let us
hope, however, that1 the
attempt
to
restore
inventories
will be spread over a longer pe-

°F less steadily at 1% a year, the
Purchasing power of many in-

very

from

effect

reasons"

"other

stock

Jng

change: in

1,604

1952

old, it

years

take

There

1,718
2,348

August

Neither type of comparison (the

<*«arter of 19?4'. ^ Just

two

afcie

too

July

comparison

business, which began in the
about

reasons

SLHSSU.

;

Now that the current expansion

cents

Employed but not at

1952

174

The steel strike of 1952
lowed

ri0d

time

was

than

was

1952.

During

the

first

year

the

current

•

Effect Upon the Economy y

vestments can be significantly affected. For this reason, the movement of the wholesale price index
is of considerable interest,

interest

observe

effects of the steel strike of

the
1952

Up0ri the general operation of the

expansion, the wholesale
price dropped slightly — though

there was
of prices

small rise in the level
of commodities other

than far™ products and foods. In

ployment between June, 1952, and
July, 1952, which could well have
been due mainly
to the strike,
but this amount is not enough to

economy—that is, upon personal this first year of the expansion,
consumption
expenditures,
thethere was some slack in the econvolume of new construction, ex- °my- The index of industrial propenditures on producers' durable duetion, which had been 137 in

produce much effect

equipment, the net change in in-

The

the total

strike

seems

i_i

J!*

measurable effect

of temporary

ventories,
parjson

layoffs,

below.

expenditures

and

security;

national

Personal

js presented in the

First quarter

214.9

23.6

215.0

23.0

Economic

The

SOURCE:

Report of

the

0.1

national

security

$0.6

25.0

3.7

27.0

23.5

221.0

in ventories

25.7

Fourta quarter.

$25.7

Third quarter

But in the last year there
^as been little slack in the economyThe index of industrial
production, which reached a high

in business

equipment

$23.7 '

Second quarter

President,

$46.0
•

49.9

49.2

50.5

4.0

January,

1956,

165.

felt

n4.

„

sale

most

about

striking, fact

the above figures is the small effeet of the steel strike. There was
a

moderate

ditures

falling off in
national

the

tween

second

expen-

security
the

and

be-

third

and there was also a
falling off in expenditures

quarters,
small
on

construction

new

ducers'

durable

and

pro-

equipment.

increase

inventories following

The index of the whole¬

price level has risen

and

the

index

expenditures, but did not interrupt the increase.
There was a
gain in personal consumption expenditures in each of the four
quarters of the

year 1952..
If the strike is short (which is

fell
of

felt

the

second

effect
the

chasing

third

quarter.

interest to note that there

strike

from

the

or
in

$3 billion

a year

inventories

The increase

relative

sales

this,
year

the experience of the
should remind us that

governments

plete

over

control
on

the

not

hears it said

one

would

that

only

com-'

govern-

pursue

fiscal and credjt
,

have

important in-^
price level. Often

proper

ct:

level ln trte l°ng run would be

drawn

duririg the strike,
July, the inven-

tries.
Furthermore, it has been
confined to a part of the durable

government

were

the

over-

$400 million less than at the end
of May.
The drawing down of
-inventories

likely.

reduction

fixed-income

during the last year has been confined to the durable goods indus-

Inventories
end

serious readjustment

And Price Level

ments

the

before

consequences

down somewhat

The experience of the last year
should warn us not to assert that
the "long trend of inflation
has been halted." More important

probably not more than $2 billion

seems

industries

protect

bound

Government Fiscal-Credit Policies

was

inventories

demand? No

power

It is of

was

would

investments,

fiuences

strike

If continued for several

.they

years,

One reason is that
spending on inventories would be moderate —

quarter, most

the

other

products and foods, by
nearly 5.4%- These are significant

down because of the strike

'by 4%,

prices

the strike. The strike retarded theVaffect the consumer price index
increase in personal consumption and to reduce
materially the pur-

instance, however, the drop

closed

than farm

unlikely), will not the drop in
buying for inventories produce a.
was quite small.
Although some- contraction that will seriously re- •
what more than half of the days duce personal incomes and precipthan
when
the
steel
industry
was
itate a cumulative reduction in. last

each

strong impact from growing

demand.

amounts.

The

125 in May,

was

J954, reached only 138 in May,

1955.

durable

construction.

$213,2

table

seasonally

May, 1953, and

annual rates in billions,
.of 144 in December, 1955, was still
142 in May, 1956. In the second
producers'
Net«han*e Expenditures .year of the
expansion, prices have
.

New

expenditures

com-

adjusted

consumption-

Such

AH figures are

Expenditures

tones of manufacturers

business and personal

Price Trends

1953.

/v..

142

probably

drop, thus raising con¬
sumption expenditures and pro¬
ducing
a
mulitplied
effect
on

figures

126

1953

giv-

comparison is

temporary layoff

•

1953

1952

strike.

model

Disputes Administration

jast
February,
following*! phrey said: " '

the
the

of
of

work becau

with the coming
automobiles, the rate of
saving in the fourth quarter will

dition,

in-

reason

years

thousands:

upon em-

correspond-

the

The

below.

strike
.

work because of

the

Such

year.

the

Employed but not at

well-sustained

will

and

months
months

ing

Incidentally, the total effects of

build-up

employment)

at work

months

during the third quarter, and (2)
wage
increases
(together
with
produce

not

(2) the number of

as a

prospects for consumption

well

last year, so

country

and gov¬
ernments, thus preventing any sig¬
of Commerce and the Depart¬
nificant drop in employment even
Labor indicate that total non¬

residential

ment

states

joint revised estimates of the De¬

partment
ment
of

billion

the

and

Persons ""employed or employed

first five months from $4,505 mil¬
lion in 1955 to $4,871 million in

duals, business

1 The

residential

for

un-

greatly

why no serious
readjustment is likely is that the

strike months

1952)
'

July,
**

The large number of people who

expecting an early improvement
in consumption spending and resi¬
dential building. The reason for
expecting at least a small gain in
residential building is the rise in

and

(June
\

or" enterprises"11?? Sy Tm?

concerns

the number

Building

A second

employed but

at work in the

not

also good reasons for

are

construction

second

cultural

There

indicating that

unemployed

sons

•

period of last

million

months just before and just after

have had

Ill

throwing

business
prolonged

people

many

economy.

Consumption Spending and

busi¬

very

cycle.

non-residen¬

that

reason

large and prolonged strikes do not
change the spending intentions of

ing the first five months of 1956
well above the

one

economy

is gradually outgrowing the busi¬

tial construction in 37 states dur¬

were

stabilizing

drop

temporary

ness.

plant

prospect. In
place, there are good
reasons
for
expecting an early
improvement in retail sales and
in spending on residential con¬

the

than

increases in demand.

run

will

employment

Even

prolonged strike will have a- affected by the strike. This can »
variety of important consequences, be shown by two types of com-; ;
but it will not bring about more
parison; (1) the number of per¬

with longThis is

ductive capacity in line

have

enterprises, and represents the ef¬
forts of management to keep pro¬

indications

The

steel prices?:

purchases of jet airplanes by the
rate of commercial air lines apd of much
spending on plant and equipment of the purchases of machine tools
will hold up until there is an ex¬ and other industrial equipment by
pansion in retail trade, a more manufacturers. Much of the
vigorous increase in consumption spending
is
based upon longexpenditures as a whole, and a range
development
plans
of

anticipation of the strike

also in anticipation of higher,

and

the present high

whether

ment

lated in

possess—their

now

orders

creased during the last year, and

°ut of work - would^ reduce reduction in spending on invenemployment by less than 2%, and tories would be pretty much offwould not raise unemployment set by the increase of about $2
even by 50%. In 1952, when 560,--• billion in the annual rate of.ex990 steel- workers were out dur-« penditures. on plant and: equipJune and most of July<,-the^ment which has been planned by
number of persons who were un- business concerns for the third
employed or who were employed, quarter, v- ^
but were not at work was little.
* % - ■
- -v-;- v'
•'

appear

modifications of plans.

than they

men

economy

during the third quarter?

surprisingly

industry.

volume

will
seri-

These the steel strike is not
prolonged,
to
will not the economy go through
dential construction dropped from represent physical difficulties in a difficult
adjustment while workcarrying out plans rather than
a seasonally adjusted annual rate
ing off the inventories accumuquarter of 1955 and the first quar¬
ter of 1956. Expenditures on resi¬

Thursday, July 12, 1956

Plants and industries short of steel the ratio, of inventories to sales
<-the construction industry, oil in- either has not changed or has dejn<*u^ry"creased. This is true of tne maothers), but the effect on the total chmery

prolonged

will

plaints of hardship from various

empjoyers
contract

those

below

slightly

strike

steel

the

of expenditures in the second quar¬

and

1955

•

small. There will be many com- filled

* -

Minimized

resulted

rapid

industries, particularly the
automobile industry and various

goods

stable. During the last
whoIe
.

well-conceived
,

year,

pursued

and

our

the

well-

industries

execulecI fiscal and credit policies,
The cash budget of the Federal

dustries

Government

using steel. Many inneed larger inventories

the

fiscal

year

Volume

184

Number 5550

The Commercial and Financial Chronicle

...

(195)
just ended will show
large cash surplus.
has

been

moderately

If people quite generally learn to
expect even a slow rise in the
price level in the long run, will
there not; be a flight from the

Credit policy

one

moderate

re-

straint.

And yet wholesale prices
risen
fairly rapidly.
Em-

have

dollar into foreign currencies, and
into real estate, stocks, and commodities? Such a flight would be

ployment has increased substantially
(by 2.5
million
between
May, 1955, and May, 1956), but
the

holdings of commodities and debts
force, yet unemployment in May, ^ad been built up to high levels,
1956, was slightly more than a would not a collapse be precipiyear ago. • At any rate, unemploy- tated either by the desire of holdment
is
large enough, and the
commodities to unload at
people into the labor

many

problems of

serious

are

enough

that

expected
to
to

ures

take

check
cnecK

stronger

the
tne

rise
rise

been

vigorously

a faster
It is true that the

exnerienre
not

are

Russia succeeds

that

Dromisl

keen the Drice level stable and
keep the price level staple, ana
that people should not count on

willing)

countries

fiscal

;

credit
policies, upon
important. But so also

the

are

unions
unions

for

union
,

manhonr
manhour

ner

per

wages.

not

rises
rises

!j i
prices

„
aewn

Insofar

aDle

roni^iv

tn
to

quite

inflation

demand

reasonable

credit paiiLy.
oolicv

sell-

dol-

strong de-

its

iron

im-

ore

cod-

rronovoi

"xe

,ikel

and
and

the

forethan

meaere
meagre

Annuities

assets

orofits
profits.

and

Home

into

commoames,

the,in.vestment
many
f

°.

offset

pro-

have

to pay higher interest rates
order
to compete
effectively

with stocks and real estate for in-

vestment-seeking funds. A genexpectation of slowly rising
would bring about important changes in pension plans and

be the net result of the efforts of

,7,

engineers and the managers to
keep down costs.
We do know

would

live in an economy in
the long-run movement of

would

con-

pre-

......

But

buy

recent years
managers have
manhour faster
fore—about 3%
a

the

engineers
raised output

per

than

economy

?n?c:

,1955

and

ports'

ever

for

the

But

wages

benefits in the
this year

have

Home

for

owner-

made

somewhat

there would

rush to

commodities, stocks, or real
Forward buying of real

discouragedrby

the

fact

that

Cess

of the strohgly-needed quan-

tities is pretty/much

year

been elation.

slow?,,rise

pure

the

labor

costs,

and

placed

A1?11

galloping

° .?

course, the possibil-

wth

some

control

scheme
of

be
of

wages.

however,

the

re¬

not

the

strong

buying of

mean

that there

ahead

for

the

serious

economy?

many

necessary

gov¬

increases

emolovers

tendencv

the

and

make

the

prices

greater

the

eliminate

the

mS^x^Tklnd.
tution

collective

wouId work fairl

„

pointing out that "since early

1955, the rate at which for¬
eigners have accumulated claims
U.

gold

$2,400,000,000
greater

past eight

approximately
year,
50%
for the

per

than

the

average

In March

years.

alone

(the latest month for which data
are
available) the shift approxi¬
mated

$700,000,000,

rate

pectations

bargaining

em!

well at fuI1

level

...

;^a

an end to
war. would produce an

acono.mic crisis in^the West, let^us
pear ln
that big cuts in de-

.,"iSe sperJdinS would make posslble equally big cuts in taxes and
f^ually blj* increases in private
alter taxes.

incomes

An end

increase
lies

the

size

mean

number

buying homes,
the

mean
mean

not
of

big

ber

fami-

house

that

|oods and. °,f „chan8e.s
Technological change is
faster, and, therefore,

stXle-

becoming

sets, and

owning two cars,
pools, color television
vast variety of goods,
,

With Mutual Fund ASSOC.

gold

foreign
banks

governments
who

gold

from

FRANfTSPO

—

SAN

obtained

their

these

citizens

own

exchange for the respective
foreign currencies or bank de¬
posits just as banks in the United
obtain

gold.

FRANCISCO,

extent

now

that
in

are

form

S. Treasury bills and certifi¬
cates, the U. S. deposits involved
have
been
first
given
to
the
Treasury in exchange for such
issues, then have been spent and
presumably are in general cir¬
culation.

Consequently, purchas¬
ing media representing the gold
in

are

nations
ury

Monteomerv Street

97.9

114.5

109.9

91.2

115.5

members

114.3

90.9

121.7

the

United

the

foreign

the U. S. Treas¬

policy
count

fact

prndnnts

farm products & food

James Tarabbia is

now

gen¬

country must
be relatively high or the rapid
rate of
accumulation
of foreign
claims on U. S. gold would not
continue, much less increase as it

to state,

own

are

and

especially the

the

change

The

year.

United

could

reserve

central

banks

will

ac¬

the

States

exhausted

have

claims

our

the

dis¬

markedly
clear

in
in¬

evidence

a
much tighter rather than
easier money policy is needed.

unless
is

may

effective

lose

taken

the

all

United

its

gold

reserve.

"Loans and gifts of public funds
to

foreign nations as well as Gov¬
spending abroad have of
played a part in the dis¬

ernment
course

sipation

gold

reserves

the past several years.
Surely the time has come when
attention should be focused

dangerous

trends

ready continued
Federal

and

that
Board

easy

seem

both

policy

reckless

rate

ac¬

ofr

foreign claims we
tighter rather than
easier money policy is required

believe that
if

shift

irresponsible. In view of the

great increase in the
cumulation

al¬

For the
to

money

the

have

long.

Reserve

now

would

the

United

States

retain

adequate basis for economic
power in a largely hostile world.
an

Flight From the Dollar?

"As

far

international

concerned,

are

gold

that

rela¬

prefer

reserves to

will

the doubtful good
people apparently
hope to buy.
In the last ex¬
tremity
of
any
future
world
struggle, we are confident that
gold could be used to buy needed
some

materials

raw

credits based

after

long

friends

foreign

the

good will of
exhausted.i

are

there is
unimportant

the

Moreover,

by
matter

of
preserving the health of the do¬
economy.
The continuing
risk of a shattering flight from
the
dollar similar to the flight
means

mestic

the

in Germany three
will increase greatly

mark

ago

the nation's gold
foreign hands."
1 We

II,

realize

many

that,

nations

dollar

during

were

credits

reserves

World

shift

War

to accept
than gold in

eager

rather

exchange
for raw
materials.
However,
gold was used in aiding^ our allies and
buying strategic materials to a greater
extent than the general public apparently
realizes.
Moreover,
the
dollar
credits
were
"as
good as gold" because they
were
promises to pay gold on demand
backed by reserves large enough to in¬
spire confidence in those promises.
in

Joins Wilson,

Johnson

(8pecial to The Financial Chronicle)

SAN FRANCISCO, CALIF. —
Virginia Davisson has joined the
staff of Wilson, Johnson & Higgins,
300
Montgomery
Street,
members

the

San

Francisco

Stock Exchange.

past year's rate of shift continues

all

demand

with Sutro

in
the

continued,

has

This

soon

the

changes that have been occurring
1948

ex¬

goes

aware

rate

action

"the Federal Reserve

members

spite

has

gold

the

Obviously,

business

"Presumably," the Bulletin

during the past year,
foreign claims

States

deposits) have
activity and
tended
to
raise
prices abroad.
Nevertheless, and in spite of what
might be called this export of

Board

that
an

stimulated

prices

increases

creased.

currency and bank

inflation,

1927.

rate

gold)

if the

Kennetl, L. proVOSt Adds

successive

decades

our

shift

similar adoption of an easy-money

from

media circulating in
nations. (their increased

the

easy-money
policy
reckless a step as

purchasing

(at least, foreign governments and

1953

foreign

CALIF.

FRANCISCO,

110.9

own

bills and certificates.

past

With Sutro & Co.

115.0

that

"Of course, the increases in the

gold

SAN

well

celeration

425 Montgomery Street

prices

circulation

States

consider

tremely

tions

the foreign

the

efforts
to
modify
it
the decidedly temporary

tight-money policy of early 1953).
We

v/v

Foreign Claims

"To the
claims

CALIF.

(such

Two-Fold Expansion Being Based

since

Products other than

claims

has in recent months.

(Special to The Financial Chronicle)

-Wholesale prices

the

erally

CATTF

stronger

central

and

hold

now

claims

Reynolds Adds to Staff

deterrent to forward buying.

Farm

being, foreign checks
representing
this
circulating abroad. The

American

(Special to The Financial Chronicle)

qan

495

central

for the time

families

swimming

foreign

banks have chosen to leave much
of their gold in the United States

increase in

ex-

mentioned,
since
it
is
"sometimes overlooked, is the fact
although

effective

during

price

improvement

in less than 12 months."

Also

that,

permitted the rate of change since
1948 to continue year after
year
with only timid and largely in¬

the accumulation of

The "Bulletin" urges "a tighter
rather than easier money policy"

States

ployment, producing no more than
a slow and
sjov
steady rise in the price

AH wholesale

115.4
May, 1956

Eco¬

Board with taking "only
largely ineffective ef¬

Under those conditions the insti-

Consumers'

114.2

for

and

are

technological

changes that would

priceindex

May, 1955

Institute

currency

(Special to The Financial Chronicle")

May, 1954

ton,

More ,and

stronger would be the resistance

kinds of goods is

S.scouraged at%lf tfrnes

prospect

that the price level will
rise, even
cinxsrixr

Research, Great BarringMass., v charges the Federal

pros-

pect that the stiffer the demands
or worker? and the greater the

particulate commodity can be
expected to rise in price. Forward

Eu.es Out Flight of the Dollar

trouble

not

event' labor costs and prices
would rise at an increasing,rate,
and the institution of collective

any

wly,

man likeiy, it is not

!?£latlon;

prices does riot, mean that any
particular piece of real estate or

price level, will be

upward.

Does

other

ed' 506 Montgomery Street.
of

American

,ty must not be excluded that
every rise in prices would accel-

specu-

in the

the

movement

hence

the

costs

v.,-.the coWVwar would

individuals and enterprises have
important needs for only limited
quantities of real estate and commodities, so that purchases in ex-

be-

year

whole.

labor

oe held
neia
rate of

*<"2 uu^i8 U1
xne £xze °r .me nouse ir
?stat® and
^mmodities would, bought, a big increase in the num-

and

demand

estate.

1..

popular,

were

up-

can

depression—it would

bal¬

downward.

nor

annuities.

would

sons,
more

be such that the price level in
the long run moved neither
T

the

ship, which has been growing in
popularity for a variety of rea-

ward

increase

variable

somewhat

surprising, however, if the
ance of conflicting influences

claims

gold" since 1955, the June 12th
"Weekly Bulletin" published by

can

prices

likelv

prices

dictable.

nrices

^
,12 iaDuor costs, in otner
words, although a creeping infla-

eral

and of the

prices is incompletely under
trol and, therefore, far from

believing that

d°wn pretty close to the

ernment

aIi
organizations—as it has already
done. Bonds and mortgages would

unions to raise wages

that

less

r se

rise less
increase in labor costs,

justified

increas

demand

not

stocks, or real estate. Such an expectation would, of course, affect
the
thinking
of
investors
and
wouid modify

throughout industry as a whole
by technological and managerial
progress. No one knows what will

which

tne

rise

rapidly increasing
foreign demand or

forts to modify" this situation.

IricJ level to
price levelho

the

than the

virtual

timid

onnnincv,,

S"J*?"®

one ls

the

"such

Reserve

Expected

expect
expect

and

nomic

1956,

rate

$2,~

reserve

aonar

can

far

last March,"

change that would exhaust the re¬
maining unobligated U. S. gold

th^'sr 1a genera^ expeitation
v^StateaSS.from

whether the demands of the trade

will

wide-

probable,

wages

about

1948

crate the increase in labor costs
by stiffening the demands of
of the cotton_exporting workers and by weakening the
Speculation against the resistance of employers.
In that

Ownership %

...

•

command

support
for
policies than

aluminum,

Variable

through

public

bargaining would have

longrun
movement of the price level
wili
depend in the main upon

greater

the

increasing

higher
than

rest

increases

petroleum

for

greatly
of

SDaomodic
spasmodic

The conclusion is that the

unions

the

seeabip future to vield

be controlled with

CI cult

limited
industries

view

dollar

tenden¬

effectiveness

utters warning
"reckless and irrespon¬

ting out
bujsness

prices.

research

Research

shift

of six and one-half fold increase of
foreign
United States gold. States all our
gold will be sub¬
ject to claim if the past year's rate of change continues for
next three and one-half
years.
Attributes this condition to:

claims

some

Economic

sugar, and other
commodities and succeeds in get-

for investment-seek-

can

{

pel-

for investmen t-seeking
funds and thereby tends to raise

ing funds

and

crmea oiaies mat aoi

mand

the

pr°a"£e. a.lu Aow cost so

wishes

new

any

things that the rest of the

pos-

opportunities, it increases the de-

Fortunately,
technological

post

mand for years to come. This
wi!1 be true even if the United

But-insofar^ as technological research
creates
investment-

produce

low

hour, it tends to hold down

for

™

dar exchange will be

technological
research.-raises--output-per man-

prices.

obviously
be
United States is

wor}d wishes and the rest of the

raise
raise

may

The

nrodnre

seen,8 10

respareh

Either effect

prices.

sible.

able

are

every

^as world has such difficulty in
as .
United States that

^fast

ties

world

output

many

make

fast

as
as

offoot

industrial

hniJ i
hold

ruled out.

research.

remains

%*,h«thor

currencies

unless

to each and

one of the above questions is "No."
A flight from the dollar into other

V°\lc}es™K(l

prices,

that

Creeping, Not Galloping, Inflation

•

trade

nolieies

wat?p

_2?_g_

higher

answer

rapidly
rapiaiy

the eiiecis of
wie
effects

industrial

growing
Trade

policies

wage

ana
and

persons)

fact

capitalistic dackin&r
grave economic

■
:•

-The

and

prices

into

crisis?

to control the price
impact of government

The

sible" in

for

easy money

may

the

government's being able (even

level.

unemployed

by the

Institute

against resuming

even

spread Communism by force and tougher credit
the
enters lnto a disarmament pact on community woul tolerate when
'fmsnot. throw to the West -Will either of the two conditions was
acceptable
sbe

governments

ooktion

tolerate

(a condition in
which the number of vacant
jobs
equals or exceeds the number of

spread

the

persuading the

of this most recent

American

degree of credit restraint that the

a£gravated by the fact that a con- has been attained and (2) as soon
000,000,000 early in
siderable part
?f the current out- as prices begin to rise faster than about
$13,500,000,000
put p* goods is_ for defense? If labor costs, the monetary authori-

Drices
prices.

Affect Prices

The upshot

resist

prices.

Study Argues That Foreign Claims on the
Dollar Require Tighter Money
Policy

meas-

in
in

Labor and Technological Research

;

the

government could not have

and

rise

the

credit

declining and that the
timid, ineffectual Reserve policies; loans and gifts of public
"^Sh prices or by the inability^ of economy may have soft spots—
funds and government
spending abroad; export of inflation
banks to finance further inr coal in 1955, automobiles in 1956, /
abroad; and relatively high prices in our own country.
?reases in loans demanded by agriculture in both years. By and
buyers of foreign currencies and large, however, as soon as two,
Taking cognizance of the in¬
Timid Federal Reserve Policy
iules^, anjL TG* e®tate • conditions are satisfied, namely crease in foreign claims on U. S.
"The Federal Reserve Board has
ismot the dan]ger of collapse.(l) as soon as full employment gold "from a total of

few

important industries (agriculture, automobiles,
agricultural implements, textile)

the rise in prices

once

monetary authorities
are
strong position to tighten

aided ; presumably by large bor- community will
growing demand for labor has rowings from the banks. When full employment

pulled

Finally,

exceeds the rise in1 labor
costs,

Co.,

San

460
of

Montgomery
the

Francisco

New

Stock

Street,

York

and

Exchanges.

for

only

years,
rate

three

much

and

sooner

continues.

half

if the March

SANXA ANA> CALIF.

—

Keith

with Kenneth

Webster

Provost,

525 North Broadway.

now

The Commercial and Financial Chronicle

Thursday, July 12, 1956

(196)

the

ment

mechanical

the

subject

Kemper's other business affiliations in Kansas City include:
Vice-President and^directo r,
Kemper
Investment Co., and
director of Central Bank, City
^
Bond & Mortgage Co., etc

Bank

ap-

proval of the latter's stockholders
und supervisory authorities. Ac•cording

the Philadelphia "InJune
30
the joint
by
Howard
C.

—

quirer"

President of the
Fidelity-Philadelphia, and Joseph
11. Grundy, Board Chairman, and

Production

AND

Dec. 31, '55
$

June 30, '56
$
#

remained with this
f

firm

This quotation is from the fore-

Public Relations Executive, has
resigned from Union Bank &
Trust Co. of Los Angeles, Cal. to
accept a position as Account Executive of Smalley, Levitt &

word of the booklet "Selections
From Canadian Yesterdays" whteh
the bank is issuing as part of its
observance of 100 years of banking service. The last story in th-

Smith, Inc. of Los Angeles, according to Jack Smalley, agency
Experienced
in
all

booklet relates a few incidents in
"The Building of a Bank"

President.

until his

D AVMikltn'c

help Canada grow."

Advertising

and

Twin

Department

McLean,

R0d

Corp. Twin Oil merged into the
Drilling & Exploration
Co. in
January of 1955, and Mr. Wilkin

CHICAGO,

President

Danner,
National,

Harry

BANK

in Petroleum

Oil

ILLINOIS NATIONAL
TRUST
COMPANY,
ILL.

CONTINENTAL

B.S

Engineering from Texas University. In 1948, he joined the staff
0f the American Liberty Oil Co.,
where he served as senior petroleum engineer until 1953, .when
he was placed in charge of the

announcement

Petersen,

munities throughout California.

degree in

engineering from Rice

Institute, and

Roosevelt

serve the banking needs
-personal
and
business—of
Canadians. We are determined to
move forward with Canada and

obtained. At present, First West
is indicated. Mr. Wilkin, ern has 79 offices serving 61 comDepart-

Petroleum

bank's

it is stated holds a B.S.

and Bankers

News About Banks
quire
the
Philadelphia

Deposit Insurance Corporation is. sources to

entirely separate and independent

Continued from page

phases of advertising, it is stated
especially in the fields of financial
public
relations,
publicity
.

-n <r__

tk m

Joins Federated Plans
(Special to The Financial Chronicle)

TARBORO, N.
statt and
promotion,
Mr.
Maclean
personnel of the Farmers National Deposits ... . 2,359.987,256 2,473,593.376 June 25 1956 Mr. Wilkin is a climaxed 28 years in Los Angeles Howseiris now
will be retained. The "Inquirer"
c^xjdjiw 641,420,017 69i.ss.609 re»stered Profession!-engineer.
R41420017
banking by serving as President Plans, Inc. is now
pJ^e^jr.
from
banks—
Farmers

all

that

said

Totai resources-

added.

of the merger

"Under the terms
v»«-'

vl4Uv*

which

ww. —

717,737,568

of FidelityPhiladelphia stock for each share
of Farmers
National held.
"Farmers National has deposits
of

tenths

.862,980,803

[Jg™*

^tockholders

authorities, shareholders of Farmers
National will receive nine-

-v

"in line with most of the banks in

V-. , ;
charter on
1
First National

The issuance of
4-L/\
June 22 for the

Montana and

Bank of Raleigh, at Raleigh, N. C.
is announced by the office of the
Comptroller or tne Currency at

Satlinia^dosing^"law* enacted1 at
the jagt session 0f
jature

National bank

Washington. The

total assets

have

state Legisdecided to close
Julv 7."

beginning

Saturdays

represents a conversion of the
Bank of Raleigh; it starts with
a capital of $200,000 and surplus

approximately $23,000,000 and
in excess of $25,000,4)00.
Fidelity-Philadelphia's total
assets as of March 31 were $349,-

the nation, and

over

accordance with the *
permissive

XTotlAkl'!

Effective July 2

bank's

the

new

follows:

Monday
through Thursday 10 a.m. to 2-30
p m .
priday 10 a.m. to 2:30 p.m.
bours

,as

are

yG3ir

19»)4r55

•

with federated

i '

Burge

(Special to The Financial Chronicle)

CLEVELAND, Ohio—Albert L.

Glen

—

wftWF^«r»f£i

With Ball,

indicated na-

tional recognition as a pioneer in
modern bank advertising. ' Mr.
Maclean L is Xl_'
former -officer /N1
and
»
director of the Advertising Club
of Los Angeles; First President of
the Southern /, California Bank
Advertisers Association; director
°f the Independent Bankers Association of Southern California;
member of the 'public relations
committee
of / the
California
Bankers
Association; former
member of the public Relations
Council of the American Bankers
Association, etc.
•» •

Public Relations

The IVTpIslIk Rank ^ Trust rjii nf Association for ths
;;Butte, Montana/announces that and received it is

Financial

of the

se-

curity hoidgs.
«

w—.—

subject to approval of
and
supervisory

are

Govt,

appointment to Republic s

2.622.954.574 2.739,066,835

Schuck, Jr. is now associated with
Ball,
£? Kraus, Union Com^erce^Buildmg, members of the
^fw York & Midwest Stock Exchanges.
;::-King Merritt Adds

(Special to The Financial Chronicle) ■/

of $468,000. The conversion to the aini(j'4 pm to 6 p.m. The bank
CLEVELAND, Ohio — Leo DNational system became effective jncjicates that for those who canDubas has become affiliated with
at the close of business June 22. not g xj x the bank on the hours
King Merritt & Company, Inc./
Gary M. Underhill continues as mentiGned, it has installed a letter
President, and A. M. Haynes re- depository at the Timepay en- J
*
*
*
•■7..'
With Edward N. Siegler
mains as Cashier.
trance,
17
South
Main
Street,
It was made known on July 6
#
«
*
which will provide for the making by the Toronto-Dominion Bank
(Special to The Financial Chronicle)
a branch in Levittown. The latter
Merrill Lynch, Pierce, Fenner Gf deposits any time, day or night, head office, Toronto, that during
CLEVELAND, Ohio — Ronald
office, however, is
not yet m & Beane and associates are offer- Saturday closing will eliminate the week of July 8 all employees A. Gold is now connected wlTn
with
operation.
ing 53,500 shares of common stock several of the holidays observed of The Toronto-Dominion Bank FrfwTrd N
xS
deposits $309,811,214.

and

538,527

principal

National's

"Farmers

Bristol,
It has branches at Croydon, Fairless Hills and Andalusia and also
I?as received
approval from the
Comptroller of the Currency for

office is at 244 Radcliff St.,

S Fidelity- 0f Mercantile National Bank of by the bank in the past, as to would be wearing buttons bearing

*»«?•? J^eu-CaS£ °+
Philadelphia Trust
4 said

"The

per

which it

says

are

observe

six

namely,

New

Beach,

share.

The

Petersen,

$33

offered

Miami

Inquirer

announcement by
President;

joint

Howard

and Roosevelt
of July

being sold for the account of sell-

the
in part:

Bank plans,

Fla.

"we will now only
during
the
year:

Day,

Year's

Me-

special insignia with the figure

"100" in the center.

the

bank

is commemorating

receive

3V2

Fidelity.

4,0

Philadelphia Trust stock for each
«hare of Roosevelt stock held. All

stock. The bank is engaged in a general banking busi-

"Roosevelt Bank's
is

fice

21st

has

•

principal

Its

ness.

An^additionalI officer has been

Sts.

Wharton

and

Ave. It had total assets as

of June

$16,148,000; total deposits of
$14,728,000
and
total loans of
$6,285,000.
Fidelity-Philadelphia
Iiad
total
assets
of
$348,617,000

30 of

June

total

30;

deposits of $307,loans

total

and

$186,-

603,000.

acquisition will bring the
of Fidelity-Phila-

"The

by Paul E. Hoover, President. W,

its wholly-owned subTrust
powers
were
granted the bank last year and a

through
sidiary.

^
created
J? that °t Trust Investment OfLeer. Francis E. Barton, formerly
Assistant Trust Officer, was pro-

$3,725,000 to $4,500,000 and

to this position at Crocker-

surplus account will be increased
served to increase
fr°m, $3,000,000
to $4,500,000,
the First National Bank of Westwhich will give the bank a comwood, N. J. from $150,000 to $180,- blned capital and surplus account
000. The enlarged capital became oi $9,000,000, an increase of $2,-

FIFTH

THE

COMPANY;

UNION

CINCINNATI,
June 30, '56

TRUST

OHIO

rity
ixoans

87.001,504 100,149.396
154,983,026

145,103,512

profits.

3,941,539

3.558,497

society for savings
"

CLEVEL*ND'
•

in the city of

------—

C"anksd dUC r_m
_

rity
uoans

19 367 885

375,339,674

28 725 816

97.339,082 114.186,194

holdings
discounts
*

186,710.249
*

193,886,615

Crosby Kemper, Jr., has been
elected to the Board of Directors
of the City National Bank & Trust
R.

Company of Kansas City, Mo. He
is

Executive Vice-President oi

said an announcement
issued by
for FRASER the bank on July 5. Mr.
the

bank,

Digitized

ft thl ?

alysis department.

was

shareholders

.*
♦

Pians £or a major extension of
the

banking

Statewide

system

date, the par value of the stock
being $25 and there are now outstanding
149,000 shares." J. W.
Baker is President of the bank.

the First Western Bank and Trust

shares presently owned on record company of San Francisco

Trn^I

J01neJ the bank in April, 1942, as
an investment analyst; Mr. Hage
April bas been with the bank since
March, 1951, in the investment an-

account

"the

annnint^H

in
f9^y ^treet Office Mr. Bartra

right to purchase one new share
of, stock at $52 for each 4.8064

were

disclosed on June 29 by T. P.
Coats,
Chairman
of the
bank's
Board

that

First

approval

Directors.

Western

the

indicated

has

received

State

Superin-

Establishment of an oil division tendent of Banks for the estab-

•

same

that

ec-

309,393,794 346.165,981

GovtTsecu&

340.549,466

resources

Deposits

the

ohio

une
$

Totai

101,264,82s

discounts

1°

record June 26, 1956, will have the

from

hZingb!!UI

Undivided

published statement
10, 1956, to $9,000,000."

stated

SStiteTJ"!:::: iSimloa
88,218,362

last

Dec. 31. '55

cash and due

275,000.1The capital funds will be
raised from $6,725,000, as of ihe

THIRD

Business,

°f

"*.»*■ tfV

Joins Merrill

St.

Lynch Staff

(Special to The Financial Chronicle)

COLUMBUS, Ohio

—

Theodore

48 East Gay btreet.

With The Marshall Co.
(Special to The Financial Chronicle)

the

Trust

Department

—

the

Republic National Bank of Dallas,

lishment of six
fices.

Texas to permit specialized han- in

Hear! Hear!

new

$30,000 has
the capital of

a*
University of Oregon Extension and is, currently, lnstructHJS. ln security analysis at the
University of California Exten-

A stock dividend of

effective June 12.

East'footh.

MILWAUKEE, Wis.
Griffith
Business, Bank looks ahead to the next 100
plan to
approved on June 26 a plan to Mr. Beil has had 15 years of bank- Canada'. *We^ pledge ourselves" to "a L." Griffith has become connected
issue 31,000 shares of additioilal
likewise policy of using our enlarged facil- with the Marshall Company, 765capital stock. x\ccording to the security^ analysis;
he
ities, skills, experience and re- North Water Street.
Shreveport "Times" of June 27 tauKr
subject of investments

from

|chool

with .Suburban

bfecome connected

words of our President, A^ C. AshJ?
,
Toronto-Dominion

Graduate

National Bank in Shreveport, La.

"the sale of the 31,000 shares will
add $1,612,000 to the capital structure, to which will be immediately
ware County
and the five Bucks added the sum of $663,000, which
County offices which will be ac- will be transferred from the unquired through the absorption of divided profits account, the result
the Farmers National of Bristol."
being the capitei will b« increased
*

tr?dltl°"

Vice-President on July 2. With
an MBA degree from the Stanford

Shareholders of the Commercial
ot

(Special to the financial Chronicle)

Supervisor ofcroud of Relations Lynch, Pierce, n2^L^lthp. Beane,
Public our long
safs "While
Fenner &
sa/s
wriixe proua oi our xong 4o Fast Gav Street
J
servtce we are more
iitdr®8'®"4 in the future. In the

bank's head office as

delphia Trust Co. offices to 23—
ten in Philadelphia, eight in Dela-

WO W itn suburban bees.

;

ness- A year and a half ago these
twQ institutions amalgamated as

Assistant

ment

being

is now

department
■veioDea
developed.

trust

Bell joined the InvestAnalysis Department at the

Edward

number

total

rxxt.

members of

Exchange

Stock

nr-.i

"amed and on new title created and The Toronto-Dominion Bank. The
a two officers in the
conferred
is
^analvsis^denartment of bank's
anniversary
slogan
J^Ser-Angli^^^tiona? bS- bf "Looking Ahead 100 Years."
San
Francisco, it is announced Gorman
A. White, the banks

commercial, special checking,

are

Midwest

Midwest Stock Exchange.

securities Co., 732

hppn

nffirpr

nrJrlitinnal

departments

savings, trust, installment credit,
bond,
collection,
foreign,
and
letters of credit. The bank also
principal of- offers safe deposit, facilities

branch at 2300 Snyder

one

xaiex

personnel of the Roosevelt Bank,
the announcement said,
will be
retained.

yedxs

the

100

common

nnw

l<5

rommerrp Buildini?

reason—

ing stockholders and no proceeds morial Day, Fourth of July, Labor years of banking service to the
from the sale will accrue to the Day, Thanksgiving and Christmas Canadian people. It was 100 years

nebs.

Sf Roosevelt to

shareholders-

for

The

(im

The

San

new

banking of-

branches

Francisco,

are

"The so-called

Niagara Public Power Bill (H. R.

11477), introduced in the Senate by Senator Her- ^
bert H. Lehman of New York> and in the House

Representatives by Congressman Charles A.
Buckley, proposes that government displace regulated business enterprise in the development of
of

additional water from the Niagara

;

River for electric

pref¬

to be distributed on a priority basis to

power

(municipal distribution systems and ~
rural cooperatives) representing only 5% of the •
power customers of New York State. This estab- :
lishes a privileged class of citizens and is wholly
erence

groups

un-American.
^

"We

■

opposed to this discriminatory bill be-,,

are

the principles of free enterprise
play because there is no valid reason for
government to compete with its citizens in the
electric business, or any other business, and because the Bill marks a long step toward further na¬
tionalization of American basic industry.
cause

violates

and fair

to be

Sacramento,

dling of estates and trusts whose Fresno,
Bakersfield, . Fullerton,
assets
include petroleum
inter- and Sanger. The offices in Fullerests^ was announceci on July 5 by ton and Sanger will be the first
Fred F. Florence, President of ihe offices of First Western in those
bank. Heading this newly-created communities. The other four new
division in the Trust Department banks will serve areas of cities
will be George E. Wilkin, Jr., a where First Western already has
graduate petroleum engineer with one or more offices.
Mr. Coats
many
years" field experience in saxd construction plans for »the
petroleum production. Operation new offices would be finalized as
of the new oil division will be soon as approval of the Federal

"We like free trade; we

like the free enterprise

system that has made America great and the life
the American labor
American
sense

—

system

man

the envy

getting

want to retain it."

things done
—

of the world. Our

makes

New York State

Association of Electrical Workers—AFL
We
firm

are

glad to give

stand

—

the

our

full endorsement to this

since

are

obliged to differ with organized labor.

often

;

wV'-.

■

•

Volume 184

Number 5550

The Commercial tind Financial Chronicle

(197)

$166 Million Priest Rapids Dam Project Launched With Bond

Bank and Insurance Stocks

And Award of Construction Contract

By ARTHUR B. WALLACE-

Week

This

—

Insurance Stocks

/How did the longer-term holder
stocks fare in the 1945-1955 period?

of fire and casualty insurance
The accompanying schedule '
gives, first, the increase in the period of the stock's equity or
liquidating value, with the cash dividends in the period, to arrive ;
at the total gain to the shareholder.
There are then added the,
ratios of the total gain to the liquidating value at the start of the

period and of the total gain to the stock's price also at the start
of the period.
In other words, how- does the increment compare
with the liquidating
It

must

value and with the
that

remembered

price at the beginning?-

the

appreciation of security
;
holdings occupies an important place in the gain, as securities price •
fluctuations, are reflected in the surplus account of an insurance \
::
company .balance
sheet. - Also, undistributed earnings
(which,
j.
parenthetically, have bee#i sizable in recent years because of theneed of the industry to-iftilize as-much of earnings as feasible im 4
...'order to build up capital funds to support the growing volume of >
'business written), have helped the.growth in equity.
vr

Adjustments have been made for stock dividends and splits; '
and it is assumed that all rights have been exercised.
;
- »

;

/ •'*,:
r

..W.-J

Increase in

; •: - r;.' 12/31/45

«.>; •12/31/55

of Total Gain

Ratio

jLiq.-Value

?,* •';■ ?". ■

"t *

Total

Dividends

—to

Gain

Price

12/31/45^—
Liq.

Vafne,

Aetna Ins.

$21.80

$72.32

24.36
24.36

.13.96

38.32

115

27.98

9.40

37.38

215

159

55.57

Agricultural
American

; 14.08

69.65

304

193
134

Ins.

Bankers &Ship——

hydro-plant by Merritt-Chapman
turned

were

Scott Corporation of New York.

to Frederick W. Arit

over

Checks totaling $160,907,027.78

County, Washington, by

Barron

Others

John

(left to right,

Nuveen

seated^

•.:*

•

Firemen's Ins.

49.19

—

134

54.49

183

160

7.45

J 56.64

383

258

53.43

I 19.40

72.83

151

136

10.90

49.80

236

171

149

108
155

15.50

48.59

87.71

17.22

104.93

186

Home. Insurance36,20

'17.10

53.30

177

116

80.94

297

253

Hanover

,t.

Fire

Hartford

Fire

;

33.09

—

Ins. Co. No. Amer.—66.35

Fire

National

New

29.45

Hampshire

_^-T-

Northern €ns.

35.78
itf;?89,79

River

North

67.91

Union

Nat.

£ ^r Stonding; Edward W. Ftycik, of Harza Engineering Co., which designed the project;. RobertaS*
O'Brien, PUD Treasurer; Edward L. Douglass, PUD Auditor; Nat Washington, PUD
Counsel; Reginald
Schmidt, of Blyth & Co.; Everett B. Gibbons, PUD Assistant Manager,- and William
Schempp, PUD
Secretary. ;
-X;;i-'-.T'.ii:,'.'-'.W""
XVX - .".-t

■"

237

172

38.90

American

Great

285

59.38

13.68

67.19

21.28

40.81

Fund

11.95

38.10

.....

.,,

182

11.87

55.24

Fireman's

212

214

Fire Ass'n

Duncan Gray, of B. J, Van Ingen & Co., Inc., and Frank .Carr-k

Co.,'Inc.-

259

31.62

Fidelity Phenix

Rockwell

company.

11.89 " ; V 57.60

.10.46

28.79

•'

Glens Falls

(seated, center),

President of the Public Utility District of
(on right), of Halsey, Stuart & Company, one
of the four security houses which managed the sale of the
revenue bond issue by a nationwide syndicate of 228 underwriters. William Denny (left), Executive Vice-President for
Merritt-Chapman &
.Scott's Construction
Department,.then signed the construction contract for his
Grant

; 40.66

21.16

Continental Ins.

Federal Ins

149

45.71

Boston InS. ____—I.'—

Six years of planning to harness the Columbia River at Priest
Rapids, Washington, were cul.minated in New York with delivery of the net proceeds of a
$166 million revenue bond issue to"*.",
finance the undertaking^ and signature of a $91,878,625 contract for construction of
its dam and

104%

139%

$50.52

-28.76

14.59

^157
,/134

y.-,

103

19.52

55.30

124

t 20.18
11.80

109.97

426

40.56

171

129

72.74

330

.215

91.49

164

125

11.55

32.13

169

;

92.76

^ 45.74

^> 24.85*
^ ljS.29

116

298

Pacific

Fire

from

page

not enter the field of

dyestuffs

the

Which

the

way,

what

hill

precisely

Boone

will

route

cannot

than

synthetic

lies

say,

and

lead
the

over

anymore

his

the

brothers

became

about
as

with the birds.

But

because

umphed

—2.15

--14.10

Fire„——_

24.35

7.78

Security Ins.__—--—
Springfield

122.29
48.05

the

—

United

have

cautious

poetry
.

■

the

say

compatriots

outset

their

them.

see

Our
be

■'

industry

own

will

•

surely

leader in this forward

move-

ment. We

will, I know, contribute
enormously to the general adtrue

onstrate
you

both

vance,

strate

what

and

false.

will recall,

demon-

what
It

dem-

has

been

the eternal char-

acteristic of research to humiliate
and

embarrass

those

who

were

enough to describe what
lay ahead. We should always reunwary

.member that

cal

foresight has physi-

well

tions..

historical

are,

tempted

guessers

limita-

sometimes

even

sights high. We will focus on the
objective which lies ahead
the
green
and fruitful plateau, not
—

the stony ground and the patches
of hard going we must cross to

fun

the

bad

history, such as Mr.
Reynolds, a very dis¬
tinguished engineer who noted in

Osborne
the

1880's

that

electricity
little future because, a mile

had
or

from its source, it would lose half
its power.
What would he say at
the

sight

marching
a

lamp

away!

those

across

the

giant
land

window

the

most

was

enough

man

never

fly.

made

that

insist that
His

scant

December

unwise
would

proclamation
few

weeks

was

before

day in 1903 when

Mass.

20.80

4.00

Surety —...

Bond

Seaboard

hardly

in our history, industrial
national, against which excel-

lent

arguments,

could

marshalled

doubtedlv,
advanced

highly
not

the

sound

have

been

outset.

;

44.90

Sur.
,

51.85

the

should

tempted. I

experience
were

beyond

can

the

Pont

been

fact

that

plausible

the

own

KANSAS
Hal

ley

that

should

126

9.70

33.36
123.49

228

•

242

„

137
188

27.75

163

7.18

11.18

42.98

318

266

23.40

78.03

156

119

14.00

24.09

12.43

57.33

206

159

65.90

225

244

•

6.95

-130

With French & Crawford
(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

CITY, Mo.—George E.

now

....

Inc.,

tributors
Avenue

AZUSA, Calif.—Waldo W. Cald-

well js now
North

Azusa

I
-

with Harry Pon, 711
Avenue.
'

-I

ATLANTA, Ga.—James J. Buf-

fington
with

with Mufu->1 DisBaltimore
1016

Spring Street, Northwest.

Company,

with

Stock Brokers
International

Dawson Adds to Staff

has been formed

Inc.

860

Fairmont

with offices

Place,

York, to engage in

New

ties business

Bronx,

securi-

Officers are William

President; Dely Hesse,
Vice-President; and M. L. Hesse,
Secretary - Treasurer.
William
Hesse was previously connected
with Cornelius de Vroedt Co.
G.

(Special to The Financial Chronicle)

Brokers,

Stock

Hesse,

CHICAGO,

Inc.» 408 Olive

Street.

509

Gordon

West

110th

Fort is

jj^a

now

associated with Caro-

Securities

Raleigh.

C.—David

Corporation

Gertrude

La Salle Street, members of the

Quarterly Analysis

City

Bank Stocks

engaging in a
offices at

securities business from

Analysis

Request

Street, New York

City.

Laird, Bissell & Meeds
Members New York

(Special to The Financial Chronicle)

—

Midwest Stock Exchange.

Opens

With Carolina Securities
ASHEVILLE,

111.

Coogan has been added to the staff
of John A. Dawson & Co., 1 North

13 N. Y.
Paul Gordon

Ulrich is

Slayton

was

International

Form

Paul

connected*

(Special to The Financial Chronicle).

ST. LOUIS, Mo.—Otto
row

has * become
associated,
Crawford, Inc., 63

French &

previously with Courts & Co.

With Slayton & Co.

there

plead-

effect

Company

at-

we use

Joins Harry Pon

Renyx, Field

Ohio

the

cite from

extremely

ings advanced
the

have

never

115

the ratios as tests of ability to show growth,
it is the same group of stocks that give the best display,
In the
investor is in a position to forego some income for a few years his
rewards in the higher grades will in good measure compensate
for his wait.
After all, what a management does for its stock¬
holders is of the utmost importance, else why hold the stock?
-

BOSTON, Mass.—Robert I. But-

trans-

no^ be opened, or why the

settlements

146
164

were

continental railroad should not be
built, why the Homestake Mine

175

14.05

„

10.09

111
;

26.76

36.54

Un¬

reasons

why

logical

67.58
-

25
.

7.51

...

54.63
-

—

Again, if

f Special to The Financial Chronicle)

successful

venture
or

37.79

15.5019-53.

—

There

7.16
:

35.47

U. S. Fid. & Gty

Dr.

distinguished

scientist himself, who

light
miles

unfortunate
.

Newcomb,

towers
to

1,000

86.95

Fidelity & Dep...—.

...

Two With

23.66

Continental Cas...

m?re^ persuasive than the prose,

reach it. There is no virtue to trick and Philip J. Peters are now
stagnation, nor is there safety or with Renyx, Field & Co., Inc
security to be found in standing
still. I think, if we are to have
Joins Gibbs & Co.
the esteem and regard of suc(Special to The Financial Chronicle)
ceeding generations, it would beWORCESTER, Mass.
Burnell
hoove us to place our bets on
the side of optimism.
Most of
rh®S;i07inM ;
S
our country's progress has come GiDPs & CO., t>u/ Main street,
through a spirit of boundless con~
fidence and optimistic disregard
With Mutual Distributors
of the consequences of failure.
(Soec'al to The Financial Chronicle)

poke

Amer.

proved

•
•„

19.60

Amer. Reins,

reality;

has

Fire-..

States

Westchester

.'Aetna Cas.

tri¬

I am inclined to think that
such venturesome victories, with
journey. But they were sure, and how professional of how tempered ^e covey in the bush proving
we
are
sure,
that the way lies our view on any subject, will be more attractive than the assured
forward, that great progress will proved tomorrow to have been bird-in-hand lypif.y at this point
be made,-and
the shape of our grossly wrong.
,
the history of America. I" am
achievements,--when
they
are
Quite certain that they typify, in
reckoned- up
a
century
hencer
Must Set Our Sights High
a most exciting and hopeful way,
would astonish us if we could live
If we are wise, we will set our the future of America.
could

Paul

•

dreams

over

because

;

22.14

—.69.35

St.

textile

;

Fortunately, it was the optimist
Much of our prog¬
ress,' it must be said, has come

.:'.X
"
should be' sympathetic
to such errors, for it is a fair
guess that any of us, no matter
one

Wright

that prevailed.

in Business Tiend
or

field

manufacture.

13.42-

Ins.

Prov.
or

the field of fundamental research

Wash.

Phoenix

Continued

59.32

E. Lewis

HANOVER,

H. —Henry

Lewis is engaging in

Members

Opens
a

120

securities

business from offices at 60 South
Main

Street.

American

Stock Exchange
Stock Exchange

YORK 5, N. Y.
BArelay 7-3500
1-1248-49

BROADWAY, NEW
Telephone:
Bell

Teletype—NY

(L. A. Gibbs,

Manager Trading

Dept.)

Specialists in Bank Stocks

The Commercial and Financial Chronicle

(198)

Large AT&T Debenture
Issue Publicly Offered
The

First

Boston

The

awarded

underwriters

the

debentures

petitive sale July 10
102.1199%.

and

used

ated

of stock offered for supbscription*

by such companies; for extensions,
additions and improvements to its
own telephone plant; and for gen¬

did the Continental plant in Dearborn,
Chrysler Corp. divisions missed only a single work day
the past week—July 4; American Motors and Studebaker also
operated four days. Packard was in its second week of closedown
following the runout of its 1956 model the week before.
last,

107.75%

to par, plus

in¬

accrued

terest.
American

Telephone & Tele¬
graph Co. and its telephone sub¬
sidiaries

engaged

are

ices,

mainly telephone service.
company's telephone subsid¬

The

iaries furnish local and toll serv¬
ice within their respective terri¬
tories and toll service
between

points

within

and

points outside

of such

territories, toll service be¬
ing burnished partly in conjunc¬
tion* with the company and other

telephone

companies. The com¬
pany estimates that about 95% of
the

toll

whole

originating

messages

the United
or

States

routed

are

in part over its lines or

those of its subsidiaries.
pany

also operates

wire

and

lated

radio

the

circuits

equipment

munication

phone

for

between

territories

subsidiaries

and

companies

connection

The

com¬

network

and

re¬

and

through
telephone

its

other

for

and

between

;

tele¬

inter¬

telephone

systems in the United States and
those
in
many
other countries
or
territories
throughout
the
world.

;

Communication

and

company
sidiaries

services of

the

its

telephone sub¬
include
teletype¬

also

writer

exchange service and serv¬
ices and facilities for private line
telephone and teletypewriter use,
for transmission of radio and tele¬
vision

programs

for

and

\.y<

purposes.

other;

.For the year 1955, the company
and

its

principal

telephone

sub¬

sidiaries had consolidated operat¬

ing revenues of $5,297,043,000 and
consolidated net income of $683,543,000.
•

For

the company and

its prin¬

cipal telephone subsidiaries, cap¬
ital stock equity, funded debt and
notes payable to
banks, amounted
to

$8,448,348,055;
$4,375,645,600
$152,000,000, respectively, at

and

Dec. 31, 1955.

These figures

com¬

pared with

954,000

$3,739,403,091; $3,632,and
$54,000,000, respec¬

tively, at Dec. 31, 1950.

steel

other facilities.

and

addition

the

Business Failures Declined in Holiday Week

now

son

—

with Paine,

Failures with

encompassing

the

missed

WORCESTER, Mass.
Lawrence
with

has

become

—

products

could be built.

great that supplies

All

Main Street. He

was

mid-1953, when
The

were

MINNEAPOLIS, Minn.

—

used

Demand for

fast

have joined the staff of King Mer-

jritt & Co., Inc.

of this size group a year ago.
dipped to 39 from 43

165

18 from 26, retailers 112 from 126, construction
31 and commercial services to 16 from 21.
service businesses failed than a year ago and
wholesale casualties equalled the 1955 level. Howevtr, t^e tolls

them

has

metalworking

did

not

shut

off

authority pointed

under contracts

with the United

contracts do not

expire

now,

and

steel

out.

production

operating

steelworkers'

strike

been

entirely,

is based

For the

annual

ingot production rate

for

the

capacity of 128,363,090 tons

week

duction 2,299,000

tons.

month

year

the rate

ago
ago

compared

week

^ '
Higher in!wholesale ,price last .week were flour, corn, oats,
beef, bellies, sugar, milk, eggs, raisins, currants, steers, hogs and
lambs.
On the down side were wheat, rye, barley, lard,, coffee,

the *

was

the actual

oil, tea and cocoa..

cottonseed
The

raw

level.

represents the

of Jan. 1,

1956.

Index Held to Narrow

^'xftfovements of Preceding Week--

•.
ifi commodities were mixed last week with the gen¬
price level, showing little change during the period.
The
daily wholesale commodity price index, compiled by Dun & Brad¬
street, Inc., close&iat 286.38 on July 3, as compared with 286.68 a
week previous, 'and 272.28 on the corresponding date a year ago.
Trends

eral

with the exception of oats, recorded declines
for the week) Demand for cash oats was good, the main support- >
ing factor being;(he belief that some oats acreage was being cut ,
Activity in wheat
of

markers,

Grain

back under the, roll bank plan.

pro¬

V'v.y

gr&i^n local harvest

new crop

Some

increased the past week

;

with the arrival '

areas.

the bread cereal was influenced by reports ;
expected yields of'red Winter wheat in the Mid- *
west.
Corn ^hcw^ed some resistance to the downward pressure ;
despite the finerprop prospects which were offset to some extent ■
by small market receipts. Weakness in soybeans largely reflected '
continued h£avy*ifeceipts. Trading in grain and soybean futures
on the Chicago1
Bb^rd of Trade declined moderately. Daily average

selling

of better thafi

weekly production

placed at 2,202,000 tons or 91.2%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The
percentage figures for 1955 are based on annual capacity of
125,828,310 tons as of Jan. 1, 1955.

sum

Wholesale Commodity Price

1956

93.4% and

;

total of the price per pound
foodstuffs and meats in general use and its chief func¬
show the general trend of food prices at the wholesale
'■' V'V
V-v;1'

index

tion is to

with

Weeks :

Marking the first advance in four weeks, the wholesale food

ago.

weeks

lasf

price index, compiled by Dun & Bradstreet, Inc., rose to $6.05 on
July 3, from $&0§ the week before. This compared with $6.33 last
year, or a drop of 4.4%, and with $7.22 on the corresponding date
two years ago,.a. decline of 16.2%.

scrap

exceeded

Food Price Index Registers First Gain in Four
v

12.7% of capacity for the week beginning July 9, 1956, equivalent

industry's

equalled

prices and pushed
"Steel's" price composite on steelmaking
scrap to $45.83 a gross
ton, a decline of 17 cents from the preceding week.

The

Failures

were

312,009 tons of ingot and steel for castings

77.

from

•

few

12.3% of capacity and 302,000 tons (revised)

■

The American Iron and Steel Institute announced
that the
operating rate of steel companies having 96.1% of the
steelmaking
capacity for the entire industry was scheduled at an average of

down

States

producers are not
a few producers''1
producers have been given '

depressed

dipped

year's level in five of the nine major geographic regions; notable
'increases from 1955 were reported in the North Central Regions.
Mild declines from last year occurred in four areas,
f >

•

looking toward pro¬
tecting themselves on retroactive wage increases by raising prices. •!
Although all of them have not made a move, the first which did
went up to $8 to $10 a ton. This raised "Steel's"
price composite
on finished steel to $129.18 a net
ton, up 20 cents over the pre¬
ceding week.
The

States,

66, in the East North Central to 36 from 38 and in the
South Atlantic, to 21 from 22; a sharp drop brought the Pacific

of 31
were

Central

all geographic
where failures

occurred

week

West North

except the

climbed to 14 from 5. The toll in the Middle Atlantic States
'

extensions.

Companies which

the

decline; during

The

regions

•;

from

and

manufacturing and construction fell below last year.

Steel workers,
some

retail

was

A
v

Electric Output Cut in 4th
and
was

July Holiday Week

week.agti^were 53,800,000 bushels, against 59,400,000 the
previous week and 40,500,000 in the same week last year.
sales

The amount of electric
energy distributed by the electric light
power industry for the week ended Saturday,
July 7, 1956,
estimated at 10,391,000,000
kwh., in the Fourth of July holi¬

day week, according to the Edison Electric Institute.
The week's output fell
1,107,000,000 kwh. below that
It increased 632,000,000 kwh.
comparable 1955 week and 1,576,000,000 kwh.

6.5%

over

haVeJj^ben holding to the sidelines in the expectation
pressure;iipob prices will increase as new crop wheat becomes
available.
Coffe^ prices worked lower last week following the
uptrend of tha pp! month.
«
.
•

the

the like week

Sharp
taking

Loadings Drop 5.5% Below Preceding Week

As Result of Coal Miners' Annual Vacation
revenue

the

coal

cars

miners'

annual

freight for the

Railroads reports.

Loadings for the week ended June 30, 1956, totaled 755,292
increase of 59,451 cars or 8.5% above the
corresponding
an increase of 136,733
cars, or 22.1% above the
corresponding week in 1954.
an

1955

crops.'

week ended June

30, 1956,
5.5% under the preceding week, due to
vacation, the Association of American

week, and

and

output for the latest week ended July 6, 1956,
according to "Ward's Automotive Reports," declined to the lowest
weekly total since the Oct. 18-23, 1954 period, due to
prevailing
two- and three-day
assembly plant closedowns.
Last

week's

week

the

industry assembled an estimated 66,973 cars,
103,037 (revised) in the previous week. The past
production total of cars and trucks amounted to 79,618

compared

with

anticipated yields from the 1955-56 and 1956-

price^jrifted

Cocoa

lower with limited demand from dealers

and

manufacturer#'reflecting easiness in the London market and
of
#e#s%ial vacation shutdowns. Warehouse stocks of
cocoa
declined; tb'392,721 bags from 396,151 a week earlier and
compared with 2#4,292 a year ago. Hog prices improved the past week, aided $y a seasonal decline in market receipts and higher
the

start

wholesale

pork ftrices. Weakness in lard was influenced largely
by sharp downward adjustments in vegetable oil prices.

Spot

Output Dipped Sharply in 4th July
Holiday Week

deplihes at the week-end were influenced bv profit
spiling induced by Department of Agriculture fore¬

casts of larger than
•

Loadings of

who

that

in 1954.

Car

iEfor^iiird wheat bakery flours continued slow with
chants offering little inducement to bakers and job-

small price

the

above

Demand

bers

Automotive

Paul

the

and trading groups had lower failures in the
The toll among manufacturers declined to 36 from

contractors

inventory reduction set in.

strike

U. S. Car

A. Johnson and Robert C. Johnson

•

of $5,000 or more fell to 169 from 206

to 63 from

formerly with

(Special to The Financial Chronicle)

liabilities

45, wholesalers

H. L. Robbins & Co., Inc.

King Merritt Adds

with the pre-war level of 208 in the

industry

holiday week.

they were received.
As-a r"
result, not even an early settlement of the strike could prevent
a further pinch on them.
v
"
y';77;'
Except for structurals and heavy plates and a few other
products, inventories of steel are higher than they have been since

cars,

Hemphill, Noyes & Co.,. 340

the

compared with 21 last week.

fanning out,
people and snowballing the losses. Hit early

strike

of these

John D.

affiliated

208

of $100,000 were incurred

excess

opportunities

as soon
as cash runs
low in the steel worker's pd£ket.
Others who will be early to feel effects of the strike are users
of structural shapes and heavy plates. Practically no inventories

Street.

Hemphill, Noyes

declined

week, but equalled the 1955 total. Liabilities in
by 10 of the failing concerns as

in the previous

with layoffs resulting from the strike were employees of railroad
and truck lines serving steel plants. Merchants will begin to feel

Webber, Jack¬

(Special to The Financial Chronicle)

even

exceeded

but

week

last

loss

week per steelworker, "Steel" points out.
Each additional day of the strike sees the effects

decreased 44,169

With

Failures were

1954.

similar week of 1939.

v-/-.

to sell goods and services to the 490,000 strikers and to the thou¬
sands already laid off in dependent industries. The average weekly
loss in purchasing power, potential savings and taxes is nearly $100

Paul Tobin

Curtis, 24 Federal

failures

preceding week, Dun
& Bradstreet, Inc., reports.
Although at the lowest level in 15
weeks, the toll remained above the 204 a year ago and trie 19$ in

(Special to The Financial Chronicle)

BOSTON, Mass.

industrial

and

holiday week ended July 5 from 249 in the

incalculable

previous week.

Paine, Webber Adds

the

Commercial

Monday of this week.
That loss, the metalworking publication explains, stems from
steel and dependent industry sales that cannot be made, direct
wages tfnat went down the drain and the expense of closing down

and

of Capacity in Week

ingot capacity) "Steel" magazine stated

inter-com¬

last week was placed at 8,130 cars and 1,926
previous week Dominion plants built 9,228 cars
2,444 trucks, and for the comparable 1955 week, 9,308 cars
In

and 2,273 trucks.

■„

The nation's economy lost $250,000,000 last week—the first
week of the steelworkers' strike (when output dropped to 12.3%

principally

in furnishing communication serv¬

reported there were 12,645 trucks made
This compared with 20,294 in the previous

Small failures with liabilities under $5,000,

Steel Output Declined to 12.3%

Beginning July 2

able at the option of the company
at redemption prices ranging from 1

assembled.

were

Canadian output

eral corporate purposes.

The debentures will be redeem¬

trucks,

week and 21,615 a year ago.
trucks.

All

21,615

in the United States.

total output of 79,618 vehicles.

Chevrolet, July 3-4; Oldsmobile, July 4 and part of July 3. In
addition, five Buick-Oldsmobile-.Pontiac facilities were inactive
four days and two plants were closed three days.
Ford Motor Co. also felt a production decline last week due
to extended shutdowns.
Several Ford Division plants were idled
for various periods throughout the week; Lincoln-Mercury's Metuchen, N. J., facility ceased operation Wednesday through Friday

com¬

by the company for
subsidiary and associ¬
companies; for the purchase

'
below that of the previous

output declined

car

Last weeK^he agency

-•

the past

General Motors dropped car production a week ago to 28,300
from 51,700 in the preceding week. Corporation closedowns were
as follows: Buick and Cadillac, June 29-July 4; Pontiac, July 2-4;

bid of

advances to

12,645, for

was

Friday last.
week

The

.Net proceeds from the financing
will

built, "Ward's Automotive Reports" stated
statistical publication's count on trucks

were

week's

36,064 cars, while truck output fell off the past week by
7,649 vehicles. In the corresponding week last year 134,092 cars
week by

joint

Thursday, July 12, 1956

decrease of 43,713 units below the preceding week's out¬

Last

ing syndicate, yesterday (July 11)
offered $250,000,000 of American
Telephone & Telegraph Co. 34year 3%% debentures, due July
1, 1990, at 102.75% and accrued
interest, to yield approximately
3.73%.

units,

page

put, states "Ward's."

investment bank¬

managers of an

from

and

Corp.

Halsey, Stuart & Co. Inc.,

Continued

with

cotton

price-making
trade

prices

were

steady

mostly

firm

last

developments.

Demand

was

limited

any new
to moderate

support^ rfi&inly for mill account, price-fixing and

covering.

short

The CCC announced the sale of 641,702 bales of surplus

cotton for export on

of 24.40 cents
The

week,

daily^fluctuations reflecting the absence of

narrow

June 26, at

average

price

parity

price

for

cotton

was

announced

pound, unchanged from the May level, but 10 points

higher than the
Trarlinf*

per" pound."

mid-June

35.44 cents

bids opened

year-ago
fhp

price of 35.34 cents.

nnftnn

tpvtilp

markpt

r*r»ntiniiprl

tr»

laff

Manv

■

Volume 184

mills

Number 5550

were

The Commercial and Financial Chronicle

reported closing for the usual Summer holiday begins

ning July 2.

Such

;

assumption

tory..

Gross

National

assumes

belies

his¬

floating

are

continue

increased

downstream

appear

Trade Volume Little
Changed From Previous Week
But
Moderately Higher Than Like Period in 1955

year ago.
*

'•.>

The total
on

dollar volume

Wednesday of last

week

retail

trade

the

period

ended

;

;
:

Some

reduced-price

■*.

what. Total sales

;

Volume

coolers

electric

fans

mounted

increased call

and

reported

increased

volume

The

■

tables

\ vegetables

was sustained

high level.

■:

; year ago. */•••.■■'
Department

stores

sales

country-wide

from the Federal Reserve Board's

30,

basis

taken

index of the week ended June
year.
was

reported.
For the four weeks ended June
30, 1956 an increase
of 9% was reported; For the
period Jan. 1, 1956 to June 30, 1956,
f! a gain of 4% was registered above that of 1955.
::
,

Retail trade volume in New York
City the past week advanced
to 3% above the like week a year ago.

■:

+;? Colder weather

5 of the week

;

and the Fourth of July
holiday in the middle
not conducive to a higher sales volume.

were

•

According to the Federal Reserve Board's
index, department
store

sales

New

York

City

for

the

weekly

June

period

ended

30, 1956, registered an increase of 10% above
those of the
period last year. In the preceding
week, June 23, 1956, an
increase of 9% was recorded. For the four
weeks ending June 30,
1956, a gain of 11% was recorded. For the period Jan.
1, 1956 to
June 30, 1956, the index recorded a
rise of 4% above that of the
corresponding period in 1955.
! > +
:
;
Y v
like

Continued

from

page

people

many

Here

are

really know.
startling facts:

some

You credit
managers,

have
It

Startling Facts
There is three times
cantile credit in use
bank loans

daily

than

business.

The

out¬

the

We hear much

volume

today about

consumer
credit
but the total value of accounts re¬
ceivable
in
the mercantile
and

industrial
times

the

about

fields

toial

equals

deposits

high.

times

credit.

total

the

eight
It

demand

banks

the

United
the

States.. It is larger than
banking time deposits. It is

in total

approximately 50%
greater than our annual govern¬
ment expenditures or tax collec¬
tions.
-

press
of

news

bank,

mortgage

full

financial

consumer

credit,

industrial

and

credit

and

mercantile

seldom

mentioned, yet with the possible
exception of mortgage credit it
is the most important credit item
in the nation.
Perhaps the fact
that it has not been
widely publi¬
is a tribute to the mercan¬
tile and industrial credit
cized

manager.

would

doing his

job well

and

almost

seem

routinely so,
though sound credit management
is
no
routine
assignment.
Per¬
haps, too, he has generally been
able to do

interference

without government

directly,

even

though

indirectly
groups'
on

the

while

lies

facts

that

face

the
managed
money
financial juggling bears

every

type

credit.

In doing so
history, since
not prophesy what

may

guideposts

does

certain

beacon

set

lights to
safely in the

travel

future.
The social, economic and
politi¬
climate in which we live has

cal

tremendous

bearing

administration.
in

the

are

past
be

for

fully

chart

Though

The

changes
century

understood
safe

not

years,

all

credit

have, been

of credit

vast

quarter

the

whys and the wherefores

must

risen

local

ity boys
thinking

course.

prosperous

the

develop¬

past two and

decades

comforting.

are

consider

the

in every
business in

engaged

was

conceivable

type of
competition with its
who

developments first, reversing the
of an analysis of our bal¬
ance
sheet
by giving our first

process

consideration

to.

our

the

Government

land

area

Federal

our

from

three

budget

must

crease

receipts

net

Indeed

gested,
Product

over

with

apace

sight.

such

relief

-Gross

sug¬

in¬

National

much

larger tax
thejexcess receipts

that

sign

relief, it is

await

our

and

will enable

grown

sixty billion.
spending has gone

Government
on

has

to reduce tax rates.

The

independence and
tility of women have been

sys¬

factor

prosper¬

bad

new

long-term credit be¬
difficult, as heavy
large government
spending make promises to pay in
the

and

future

less

valuable

real

upon

Due

of
adequate purchasing
The acquiescence of the
taxpayer in his tax burdens may

power?

be drawing to a close. Signs
militancy are beginning
to
appear; A tax revolt ip a peace¬
ful manner may be nearer than
we think.
Despite prosperity, our
citizens are beginning to resent
seeing so much of their labor ap¬
propriated for their government,
leaving a smaller and smaller,

theory is

portion for

themselves

the

their

and

Marx

was

who

said

destroy the capital¬
is to tax and tax
and
tax again.
Our tax system
is contributing to a moral break¬
way

istic

system

our

citizens.

Our

gov¬

expenditures
are
so
heavy they are bound to develop
bad ethical practices in govern¬
ment and occasional

outright dis¬

always
street.; ;

Another

liability

sumed

the

we ;;

past

have

as¬

is due
to the growing pains of our mod¬
ern
system
of
communication.
Radio

and

years

television

formative

and

can

in¬

educational,

many programs are,

emphasize

and
but too many
in crime.
In

dealing
all too many instances programs,
whether
intentionally or inno¬
cently, give a slanted or distorted
of

account

events.

news

Mass

the

labor

our

virtue

move

have

It is

this

reversed

change for the

better.
We

lost

much

in¬

our

thrift.

slavery
form

record.

20th

vile

the

have

ening

our

adversity.
Is

bygone ancient

repeated

free

competitive

system.

petitive

ask

the

and

believe?

state

for

enterprise

free

com¬

Whether

subsidy,

quick depreciation
or
other
help, it is well to remember that
a

each

grant

away

eats

the

business

another's

bread

chisels
must

other's will.

We
trol

at its independence. He who
of

have

our

gling

economy

practices.

by
As

can

con¬

money

jug¬

long

The

moral

science

advance

and

has

been

science

new

realty;

are

here

oped

and
of

new

now

sources

being, devel¬

abroad

health

and

new

are

being.
products, new
breeds, new disi

agricultural

breeds and cross
resistant crops,

ease

productive

seeds

and

political bribery en
practiced by both parties

openly

and

unashamedly.

criterion of too mucn of
lation

its

have

discoveries

vote-getting

legis¬

appeal.

highly

new

have

all

these

Side

social

lems and the liabilities they have
burdened us with,
we
have on
the asset side of

ledger

some¬

how managed to more than

coun¬

terbalance

some

insure

our

them.

better if

even

would

soundness

On the whole

mistake

liabilities,

the

our

can

have need
amount

brush

incidental.

side

century,

We rely

common

the

out
on

muscles.

today for only

common

larborer

labor.

yester¬

day is the skilled worker today
yesterday's skilled worker is

and

technician

the

magic

tomorrow.

ity and competency.
Per Capita Production

Although

our
labor force has
increased but 13% in the past 10

has

production

our

increased 37%.

capita

per

intelli¬

gent workers and better machines
have

made

this

contribution.

We have been fortunate to have
lived in an age of constructive
dissatisfaction with things that are.

This impatience
seek constant

tive

all

this

the

credit

execu¬

has

made a great contribu¬
He has moved forward with

tion.
new

has moved

improvement.

ideas,

understanding of
credit practices.
He
has
improved his economic
knowledge
and
broadened
his
credit

new

and

new

Credit

Executives' Work

He is responsible for his profesi o n a 1
organization's progress.

Both

locally

credit

with

this

and

conditions for
the wage earner. Not only is this
policy one of better human re¬

nationally

associations
the

times.

reflects

have

the

grown

Nationally,

the

local

and

progress,

membership has doubled, services
have

improved and

have

been

time

added.

was

yearned

problems found
ence

and

Service

created.

services

new

When

Washington

war¬

was

When the

for

greater
the

established

Graduate Schools.

trying.

working

vastly in-*
capacity in

period of time.
The
Aladdin's
lamp
is
our industrial capac-.

Through the wise use of machin¬
ery we have made the lot of the credit men
laborer more agreeable and less education

industrial

needed it

cept

world's his¬

our

vision.

our

today.
Our
constantly increas¬

among

burden

today

a
greater
fellow-man.

our

nation

its

dwarfed

record these

the

longer

time in

has

short

as¬

constant attention.

have taken

small

favorable

mind and less

our

have made

overlook

things we
definite gains.
We

liquidate

aside

would

these liabilities and thus

the

our

creased

years,

prob¬

miraculous.

means

ing.
,

scientific

for peaceful
destruction.

the

live

intended

employed for

Despite

The

our

Witnessed

Analysis of Asset

The

tory

were.

even

average age is

never

day

our

are

understanding of

this

have

masse

use

war

They

history

We have developed a new con¬

assumed

today
power

New

have

history,

How mistaken

age.

our

Competitive?

severe

of labor.

Enterprise

our

field

phenomenal.

other

to solve our

ex¬

products undreamed of years ago

Century witnessed brutality
always assumed a practice

that

past quarter of

rely on the state
problems, thus weak¬
power
to
deal with

living.
larger

our

may

and

pages

have

satisfy

Our

all
been
they are not based on productiv¬
realized on the farm.
ity. In the end they destroy the
Our transportation and commu¬
purchasing power of our mone¬
nication facilities today are fabu¬
tary units.
The world today can observe lous; tomorrow the development

dividual freedom to the state. We
come

the

health

labor demands that create infla¬
tion in the price of goods because

They need
have

foregetting

great progress but it would be

cently

measures

habits,:

sets.

tendency.

the

are

extravagant

enabled

fields

wants.

self-evident.

•

has

all

takes

government

high

have

family, in*
suring understanding, tolerance
and needed working
together, is

dead-end

glected spiritual values.

re¬

value

delusion.

thinking is developed in contrast
to
the individual thinking
that
characterized
our
pioneering
forefathers. This is a contingent
national liability.
In a rush to provide material
things we have in the past ne¬
More

This

standard

inflation

••

the

much of

and

into

and

greater pop-*
ulation in turn has meant a higher

The cost

mild

snare

runs

Because

honesty.

of?

families.

so-called

living

had
tremendous increase in popula¬

inflation under control.
'

professional

proven.

migration
of

tion.

living due to farm prices may
reasonable stable, but if you
trade your dollar for
stocks, or
most durable goods,
or
a
home
you
will scarcely feel we have
The

and

been

citizens'

us.

are

business
has

standard
a

dollars

soon

the

world

dealers.

Inflation is

real

Today
engaged in other

economy.

petency in all fields of endeavor

Inflation

more
.

women

pand

evident that

taxation

our

time

theor¬

era

versa¬

than household duties than at
any
in our history.
Their com¬

juvenile

our

faced with the heaviest
tax burden in
history. In 25 years

gaged is estimated to average
more than 50% of the value.

free and the debt of homes mort¬

perpetual gloom

the

automobile

;

We have boasted in business

are

the

are

o m e
ownership
has
Forty per cent of our
owner-occupied homes are debt-

the millenium

They

nation.

Tax Revolt

liabilities,

Analysis of Liabilities

assure

arrived.

made it possible
prodigious produc¬
distribution
through

grown.

doubtful.

perpetual
in their

has
our

and

Our

21%

owns

the

tion

They are spread¬
their gospel less these days
among
the textile industries or

Under the circumstances isn't it

real, probable and contingent.

the

This

sustain

utilization of credit.

ing

are

Federal

ists of the '20s.

citizens,

own

tion.

actual

security

basis

who

dispensers

actually taxed to support
government business. Today our

half

Let us
questionable

have

influence

billion in

social

actuarial

has

Government

has constantly worked for
higher family income classifica¬

come
a

tem the soundness of which from
an

has

to 22

of .constant
purchasing
has increased year by year,
and the wage scale in annual in¬

Stripped of its

objective

have

1955.

1931

you

overlook

ahead

enable

view

ahead.

years

cannot

quick

ments of the

The

and

the

three

about

farm

the

all

about

take

some

increase

ahead.

Let

mer¬

standing mercantile credit is fully
3J
times
larger
than
brokers'
loans.

will

years

therefore,
responsibility.
throughout the

tremendous

family income in terms of

power

experience, our full employment
act attempts to insure us against
adversity. In doing so it embraces
socialism. Adversity has its bless¬
ings, not the least of which is
strengthening of character.

debt

ernment

Sound Credit for World Progress
how

disappearing.

Our

years

$1,670.

Federal

down

fast

worthwhile

until

comes

1956, increased 7% above those of the like
period last
the preceding week, June
23, 1956, an increase of 6%

;

Wholesale orders decreased somewhat
last-Ayeek, with slight
volume reductions reported in some
textile, food #pd apparel lines.
However, the total dollar volume was moderately'8 above that of a

past

$135

recently

goods occurred the past week. Butchers
reported in¬
creased volume in
poultry and fresh meat. There was increased
interest in eggs, butter and ice
cream; trie call
fresh fruit and

capita

The

•

Family Income

dollars

self-reliance

our

conditions

We have largely elim¬

Real

unfortunately grown
for authority.
It is

working

inated the sweatshop.

tinuously.
Much

but

to safety and health are vastly

improved.

re¬

pull

evident in many small ways. We
should support our public offi¬
cials of integrity and do so con¬

lion

buying of frozen vegetables, canned fruit

and baked

the

scrambled.

taxes have gone up from 600 miL

sets remained at the level of the
previous week,
An upsurge in the

the

from

and dinette

lations,
as

must

many

disrespect

government does not

per

There has

billion

270

usually does inflate to
the
point
of; a
deteriorating
money,
which is a confiscatory
tax upon all the people.

noticeably

lawn

chairs, while the buying of upholstered furniture

and

can

stores

1931

go
bankrupt.
It
can
cause
its
people to become bankrupt or it

Our

Furniture

The

courts.

exceeded those of last year. There was
for television sets, refrigerators and automatic

laundry equipment.

;

promotions

and

private debt in the
period has grown from 178
to 380 billion, but in the
case
of private debt, its
incur¬
rence
must
be
justified
and
proven as an investment or busi¬
ness, and the individual shoulder¬
ing the debt faces the bankruptcy

air

public debt has gone from

billion

and purchases considerably

be different.

may

out

today.- Our

men's apparel were
slightly ahead of those
with gains reported in sportswear and furnishings.

year ago,

same

encouraged consumer
buying of women's cotton dresses, sportswear and swimsuits.
While volume in
lingerie, cosmetics, and shoes expanded appreciably, purchases of handbags, hosiery and gloves decreased some¬

•.

Our

was

sales

sults

ourselves

by the following
percentages: New England +8 to +12; East +7 to +11; South ;
+3 to + /; Middle West and Northwest +2 to +6; Southwest 0 to +4 and Pacific Coast —1 to +3.

;

off

experiment. The minute
fight our way upstream

ahead of greater production.

3% to 7% higher than a year ago,
according to estimates by Dun & Bradstreet, Inc. Regional estimates varied from the
comparable 1955 levels

leveling

with

will

monetary control
stops that in the end we may find

;• V',.

;;

successful

expenditures.
We
know government spending keeps
pace if it does not run relatively

There was an increased call for n*w .«.nd used
passenger cars <
and dealers' inventories
continued to decline.
/

Product

or/,

government

Although retailers reported noticeable gains in Summer
apparel, air coolers and outdoor furniture, total retail trade remained at the level of the
previous week. However, the total
dollar volume moderately exceeded that of the similar week a

stabilizing

(199)

When practical

need for confer¬
we
pion¬

consultation

eered the workshop.

Continued

When
on

lack

page

(200)

The Commercial and Financial Chronicle

•

Continued from page

ahle whether

the

Sound Credit lor
disturb¬

ernment

launched the Credit Re¬

now

are

engaged in a historic work of de¬
veloping a credit handbook. When
we
lacked an Eastern
Seaboard

estab¬
lished it. We pioneered the way
in development of the fullest and
most complete financial data as to
our operations of any trade asso¬
Service

Interchange

lishment of the Secretarial Coun¬
cil and

invited its membership

to participate

in our board meet¬
ings. Their contribution has fully
justified the confidence.
In
the field of legislation for
sound credit the accomplishments
of the

tions

associa¬

and national

local

too numerous to itemize.

are

outstanding
enactments
are the
Chandler Act, the Miller
Act and state laws requiring par
Among

clearance.

Whatever the needs of

the future

and the Locals shall

anticipate
them and to
satisfy the profession. All this has
been accomplished on
a
modest
fiscal requirement
in the Local
and a scarcely nominal increase
by the National.
We have pre¬
try

pared

the

meet

challenge

the credit world. When

methods

new

credit

techniques are needed
they will be forthcoming.-We do
or

not propose

the

credit man's

profession
great calling, one of which the

member

and

the

nation

can

greatly proud.
What

had

in dharge

ernment credit.

The
in

years of

gov¬
'

broad education

self-evident.

is,

however,
important
that
the
growth of educational activities
now

ous

of the

would

they
business.

help
these

educational

business

pro¬

have in the minds of some
people placed too much emphasis
on
theory and too little on prac-^
tice.
It is important too that an
educational
program
be contin¬
uous. Merely to accept it or pro¬
grams

mote it by reason of

the fact that
earnings are high and the cost by
reason
of
high
taxes
can
be
readily absorbed is a short-sighted
policy.
Education
in
business
cannot be a fair weather program.
If it has value, and a good pro¬

has,

gram

must

continuous

benefits

its

because
obvious

period of adversity.
is then that the skill and ability

with

Automation

With

ulation

necessity

There

and

much

and

greater

ment

at around '63

fieldos

made

have added
ter

million^ in all

million and

business

new

peak.

new

We
quar¬

establishments

in 25 years.

•/"*

almost

tries

have

others.
lion

prospered

Out of

business

companies
one-fifth

our

than

four mil¬

establishments,

have

over

the

accounted

nation's

12
for

business

profits.

This is not said disparag¬
ingly. It is stated to call to your
attention the limitless future for

business services.
of

one

these

re¬

Each and every

served

well

those

fairness.

and

reason

carefully evaluated are salaries,
options and pensions.
Salaries must be commensurate

with

other

business

equal
nature.
Pensions cannot be weighted at
the top. In truth they should be
relatively smaller percentagewise

Today

year.

we are

Business

Responsibility

In the years ahead business will

have
to

continuous

try

Labor

help

agreements

account

the

unwarranted

are

stimulant

resisted.
must be

inflation.

must

take into

inflationary effect of
demands, and when

such demands

flation

responsibility

check

outright in¬
they should be
and

services

reasonably priced. A high

sense

of ethics must control busi¬

ness

management.

opposed.
of credit
ranted.

would

In
be

Government

business

Government
in

peacetime
credit

build

basis of
if
a

stock

tion.

Stock

bonuses
be

must

regulation
is

able

opportunities

converted

into

than usual

These

they

which

values

their customers.

have

Big

tion

our

other

lands

government

lows. In

care¬

suggests that

our

regulation

fol¬

free country

be avoided if

this should
hope to maintain

freedom.

Human

man¬

even

important with continued
industrial expansion. Every effort
must
be made to build
mutual
more

respect and confidence

understanding

mutual

well

prob¬

lems.

workshop will be modern¬

even more

than it is today.

A
modern plant, aside from its effi¬

ciency, is a contributing factor to
good labor relations. Every busi¬

better

has

tremendous investment

in its workers.

been

The cost

preciation
that

has

fense

of train¬

New

view, that much
study

given

thought and
these policies in

rates

none

de¬

our

though

know

If it is in

contri¬

equal

Isn't

this

aid

the

farmer

uses

are

Attractive inter¬

needful

the

they are to the veteran.
plight of the farmer has
over-emphasized but it is
as

the less real.

Such subsidies

today are spread among
fewer
farmers,
giving
each
a
larger share. The farm population
as

pay

has been in constant decline.
his

creased
years,

income

gross

fourfold

It is

has

the

in¬

past

but his net income has not

kept

pace with other groups. His
land value has not risen nearly as

much

industrial capital invest¬
Let it be remembered that

ments.

the farmer constitutes

ship.
minds

examples

All

one

good

citizen¬

to solve

this farm

sel¬

unfair" advantage

help wreck the greatest
was

ever

time in

known,.

our

In recent years,

It would be

coun-/

however,
if the

well

aged, the veterans, business, labor"
and the farmer tnought first of'
the
country's welfare.
Political
pressure
groups
can
and
have
ruined nations. Let us not permit
that in this great land of ours.

young pioneering nation
have a confidence begotten of

;

experience. That confidence, how¬
ever, must be tempered with rea¬
son
and judgment.
We need but:

labor.
We

This

have

trend

will

increased

our

production, due to the use of mod¬
machinery and the efficiency

ern

workmen
in

who

their

further

far

how

work.

gains

better

are

the

shall
years

roll by.

There
is a danger here—and particular¬
ly when we blindly assume there
is no limit to the speed of capital¬
ization of American industry. We
that

know

true—it

not

Statesmanship

never

Our great danger is

has been.

admittedly fabulous
future to run away with out judg*
ment.
A stock market crash^can
permit

our

serious thing. Those Who tell
it cannot occur now, and that
things
are
different,
were
last
heard1 on the eve of the - -1929
be

you

catastrophe. It need not occur if
we use judgment—it will occur if
we

that

assume

cannot

market

stock

excesses

our

vulnerable.

made
:

Our

government, too, must rec¬
ognize that it cannot year after
year increase its rate of money
expenditure.
It cannot incur a
debt based entirely on the theo-retical hopes of the future. It must
give

honest accounting. Its es-;

sential function is to preserve our.
freedom/.

maintains

cannot

this

and so
These are
times that demand political hopesty and integrity.
r
The whole world in which wd
heavy

burdensome

tax

budget.

live

are

all

constant

study and we
Let us
study

students.

carefully and

our

prepare

lessons

well.

j
Leadership

World

Our
We

the

most

take

time

from

promising.
breathing spell

future

may

interest

future.

in
It

better planning.

forces

to remember that

tion

this

but

our

the

over

constant

It is well
though civiliza¬
shown

has

years

it has also re¬
corded prolonged periods of retro¬
gression.

progress

We have read about the
civilization slum¬

dark ages when
bered

indeed

dare

did

retro¬

not

repeat

not

that

experience. The responsibility of
world leadership is upon us.
We
must

faithfully discharge it.
— a
profes¬
which you and I are en¬
gaged—will have much to do with
Credit management

the

future

credit

world.

the

The

of the smallest
soldier in the ranks

manager

company

fighting

is a
for a

better

world.

is in the front line trench defend¬

ing civilization.
The

world

needs

are

Credit and production can

Labor

the

discounted

have

future, bright though it is.

sion

We have constantly reduced the

continue.

they

If they

selfish attitude has been all too

gress.
our

put their

must

groups

to work

inequity.
hours

labor

practice it

them.

great
satisfy

It may be a constant strug¬

We
Farmers' Position

the field of public relations,
business needs to be more care¬

ful.^ In illustration it-is question^

em¬

seen

What

dustrial market.

agement.

the future.

go.v-

those

of farm products
resulting from /re¬
search will give him a better in¬

been

seek

can

common.

industry

make

care

increasing
charge of man¬

value

defense?

must

The

they

be immortalized.

welfare.
a

new

farmer

quality /of
our

when
we
focused
our,
thoughts and deeds on the general

sounder ways than with subsidies.
New highways will be helpful to
him.

high
-from

try

better way to deal with the farmer
than through subsidies? »

for

demand

There

plant and equipment

doesn't he make

from
making
inflationary in
character.
Of what value is a $5
an hour wage rate, which we areapproaching, if the $5 has a poor
purchasing value? The year ahead
are

nation the world has

plant and equip
it to improve our defense status
and then allow its depreciation in
five years,
why isn't it fair to
allow the farmer to depreciate his
capital investment in newly ac¬
quired land in five years? Why
shouldn't he be able to depreciate
his present land value, which is
his capital investment?
Frankly,
bution

Let their repre¬

refrain

that

demands

they

interest to encourage, business

ployees

country

following question,

consideration

health

some

build

sentatives

fishly

this will -bq widely interpreted as
a
radical Suggestion, let me pose
our

of constant value.

can

not travel far without farm

tions and

the

this

products, m!
Quite frankly,

the

that they do.so.. Nothing is more:
important to labor than a dollar

leaders.

is more
essential to defense than adequate
supplies of food?
It is said an
army
travels on its stomach.
It

public relations, stockholder rela¬

becomes

program.

could

be4

therefore,, that
keep : in mind, the "
general welfare Jof the nation. Ht
is in the interest of their members:
leaders

") look at the stock market to realize

have

trained

business ethics point of

pay

hOuse^,

important,

union

statesmanship

the wisdom of allowing quick de¬

ing and learning the know-how in
this day and age is heavy. There¬
fore,
aside
from
humanitarian

handled carefully in the past few
years,
as
many
a
stockholder
knows.
It
is important, from a

indeed

would

continue.

finest

The

ized

nation

them—and

?moref7 people" :4a.

comes

will

are the only people who in¬
dividually have little or no con¬
trol of the price they receive for
their
product.
Should they get
together and exercise this control,

true

relations between

agement and labor will loom

unwar¬

regulation

must

when there is too much concentra¬

far^ better for

business

ness

not

prevent progress and

can

workers .-to; fill

eiothe, feed; and: shelter;/ It

They

est

fully appraise the size to which it
may go.
The history of big busi¬

performance.

matters

the savings banks, will
wage a more determined
fight against inflation if they ex¬
pect to
hold the confidence of

should
can

ahead some busi¬
the insurance com¬
the bond houses as

and

well

have

they hold the op¬
options should not be
instead

years

such

panies

which

but

the

nesses,

their becoming val¬

Once

lands.

Bonus

management

unsettled.

stick with it in good or
By doing so we shall
foreign trade on a sound
and develop fine relation¬
with the peoples of other

basis

greater net worth for the

Products

regulation

uable

expanded

times.

ships

The real
purpose
of a bonus
50% of our earnings in should be to reward those able to
dividends. This is much less thanout-perform the average of the
we
paid percentage-wise in the
industry-or those who have dem¬
years past.
As to the future of onstrated their
ability to overcome
earnings, on a long-range basis the tides of
adversity. To pay a
they will continue to improve. We large bonus in a sellers'
market,
are growing still
and this means
when the crest of profits is high
increased production, distribution in
most every endeavor, is not a
and
earnings.
Rolling readjust¬ true bonus. It is being paid for
ments will occur as they should.
the usual; a bonus should be paid
They will be in the nature of our for
performance that is unusual—
experience presently in the tex¬
beyond the average.
tile, automobile and precious min¬
Stock options should be given
on

is fair

build

average

ing industry.

objective;

must

bad

for those of very substantial busi¬

investments

foreign trade program is launched

re¬

Purpose

businesses must base

determination to be consist¬

mate

services performed and com¬

sponsibilities

hardly be
Vr' /.
can

ently aggressive in foreign trade
whether the foreign business cli¬

stock

peak of last
paying on an

are

living standards of the world,

and

customers

the

po¬

reasonable profit, a de¬
sire to be of service in improving

Business

The

lands.

>£

three-way

and
past dozen years, with our great
earnings prosperity, earnings have been the
may pause in their upward climb
accepted order. It was exceptional
but not for long.
The dividends not to realize a fair return.
to be paid will compare
favorably-

with

beyond belief. The great
they will make to, a

trade at

large

their

nation.

will

investments

these

their / foreign

the

companies ness incomes. Bonuses should be
had an humble beginning.
They given for the unusual rather than
have
grown
because they have" the usual
performances.
In the
their

have

hemisphere,
legislative cli¬

dollars

in other
of

f American

Items in particular that must be

petitive

abroad

own

evaluated.

they direct, it is neces¬
they keep their
demands

1 with

Abroad

better world.for,all

the

Our business prosperity has not
been enjoyed by all. Some indus¬

our

billions

invested

company

sary

within

■.

investment

nominal

tentials

rpanagement. When
the executives of a company have
but

nothing

fewer

heavy penalty for permitting the
agricultural
maladjustment
to

contribution

period of timein-whicli:
have -morev job& /and *

shall

many

from the soil. It has been said that

the

favorable

mate,

out of control

Employ¬

;

investments

overseas

want to remain

you

trade of the world

Our own
imports will : rise to

and

Our

first requirement in the

ahead if
competitive.

them for

only begun. The moment there is
any semblance of political stability

machines.

public
better, more
In the long

criticize

not

Investments

made

peaks.

new

increased pop¬
evident that greater

must

the

isolated action.

exports

declining

labor force and

that

better

The foreign

;

relatively

will expand remarkably.

misfortune

is so
valuable.
The requisite skills to
combat adversity can be taught if
businessmen are willing to learn.
cope

with what he has.

owner

and that

are

reaj

we ;

group

that, for example, no subsidy or
program could maintain the use
run a customer
becomes irritable of the horse
and buggy
in the
when he must, or feels he must, coming of the automobile*
How¬
buy a new product solely because ever, it is not that simple as re¬
the color scheme of his last year's spects farming.
We have not yet
purchase may make him feel a bit found an adequate substitute for
food
or
antiquated.
■:■ 'stf:' ■•/
a
replacement for the
Business
must
develop
more products of the farm.
No scienti¬
consistency with respect to public fic discovery will eliminate them
servants.
When they are capable as necessities.
It
may
alter or
they should be backed
to
the change them, as it has, but basic¬
limit.
Perfection should
not
be ally you will need farm products.
If we permit the
expected.
It
is important that
agricultural
business judge its public servants situation to
drift
we
may
well
on
their
average
performances force
farmers
to
unionization.

sponsibility today iq the field of

billions.

have.

relations emphasize a
serviceable product.

hurt rather than
In recent years

taxes

damage. - In a
however, we cannot

further

prevalent be kept in bal¬

sound

are

prosperity. The net prof¬
its of corporations last year after
were

of. We face

point of seri¬
longer period,

don't: prosperity with so; large a
things until they are not sharing it;. L.' 1 /
;vi

use

Unless educational programs

ance.

years

business

credit

the long run
business.
We all

the rest

affect

the economy- to the

is in

The size of the modern farm is
service; we know
our standard of living is such that" increasing,
by force ofcompeti-/
we want and can afford the new¬
tion. The. wage and tax inflation
est style,
the newest gadget or is making the cost of farm equip¬
color.
However, it is not in the ment and supplies a problem for
best interest of business for its agriculture.
Real estate taxes on
officials publicly to declare that farms, which are constant whether
their intent and purpose in alter¬ or not we experience crop fail¬
ing their product is merely to ures, are inequitable. The youth
create dissatisfaction in the mind of
the
farms
are
being driven

the

need

business

will be

have

efforts

and

people

Automation

future?

Future Outlook

-in

it
It

practice
what
its own house.

desires

proper

use

the

lation

to rest on our accom¬
Our objective is to

plishment.
make

should concentrate its credit regu¬

We encouraged the estab¬

ciation.

preaches

Foundation.

will not

ment

to create, customer

know people in our country
wear

ing

public declaration

program

dissatisfaction

of research in credit was

[ .Thursday, July 12,: 1956

(

•

have

been

able

pay

greater wages in terms of dollars

Presently
the
farmer
is
not of stable purchasing power in the
sharing in the general prosperity.; past decade, and the worker will
1

For

limited time

thismaladjust-

care even

responsibil¬

gle to do so but it is

ity credit managers

assume.

The progress of world
ment is fantastic.

develop¬

Science is open-

better in" years to oorae. -ing up1 new .thought and

products

Volume

'Number 5558:

184

The Commercial and Financial Chronicle

(201)
\

needs of hous¬
ing,^ food, goods and services are
growing.
The opportunities that

day' by day. The

mankind faces

were

danger

from

stems

the

cusses

It will most assuredly pass
quicker if, in our daily tasks and
in our business, our homes and

pass.

factories, our farms and our
schools, we remember to make
certain that our guiding precept

which

expansion,

widening

between debt and income.

gap

The

always be —- "Render unto
Caesar
the
things
which J are
Caesar's and unto God the things
shall

that

God's."

are

demand
exceeds

^cp^genqent instead of
cost, in order to mainplant and equipment up to
date in
keeping with the demands

Dis¬

firms,

at the highest

are

early

1930,

Chicago
serial

First

Na¬
cur-

issue

Equips.
is

^-New York,
/8

bt.

Louis

equipment trust certificates

due semi-annually
1071

Uf^

1, lifol to

reu.

^<5

*^iei

froni 6.10 /o
Jssuance ar?d sale °*
certificates are
T

its

"New

England

this

when

year

record-

subject to author-

The

;

.certificates
by 30

cured

will

near

^capacity.

shortage

growing

wuv,

With

materials
and manpower, there was a bidnf

ding

nrirpc

anH

Prices

wacres

ings last

$5,061,200

view

this

Slock at $27

with

for 341,550

mon

additional

the

each

for

,3:30

underwriting

headed^. oby
Union

Co.

grp.up

Corp.,

and

Co.

Brothers,

Lehman

Securities

Stearns
&

wll4 expire
(EDT)on Aug. ,2,

p.m.

1956.#

one

shares .held

Dean

Bear,
Witter

will purchase* any. unsub-

scribed

shares.

Net proceeds from the sale of
stock, together with cash on
hand, will be used by the comthe

struction
and

its
1956,

program

1958.

that

forward

carry

within

con-

1957

The company estimates

approximately $67,000,000, in

addition to the proceeds from the
*sale of the stock and

$25,000,000
-credit agreement entered into" on
a

inflation

;
i

Federal

The

chief

the
tion.
as

there

the

Historical

economy.

should

there

stoppage

the

flow

duced
time

trickle.

For

credit

our

During

the

last

decade

and

that

has

the

wage-price

spiral

for

order

steel firms
at

Because

increase

for

necessary

ti.al

progress.

doubled.

capacity

to raise capital

The

its

problem
was

the steel industry
investment 110%.

facing
individual
strikingly set forth,

the annual stockholders' meet-

great responsibilities in providing

ing of United States Steel Corprotection against erosive mone-. poration. It was pointed out by its
tary influences, the Federal Re-- Chairman,
Mr.
Blough, that it

people

efforts

its

had

and

day

preserve

such

the

would cost United States Steel to-

essential

than four

/The Pacific Power & Light Co.

.is engaged
vness

primarily in the busigenerating,' purchasing,

1 of

transmitting,
distributing
and
selling electric energy in Oregon,
f Washington,
Wyoming, Montana
and

Idaho.

H. Hook & Co.
H.

Hook

formed

29th

with

Officers

are

Inc.

offices

Peter

Bergson,

President; Harry L. Selden, Secre¬
tary;

Miron

Sheskin, Vice-Presi-

wa"' fom JwawithrHewy

xSl

Matthew

Fla.—Robert
T.- Kent-

Associates

and

DALLAS, Tex.—G. F. Bryan &
Inc. has been formed with

offices
_

the

Southland

Building to engage in
business.

Officers

are

Life

securities
George

Continued

half times

from

test

Mount Vernon

Avenue.

—

Carey

;

William

connected

Saylors
with

Al-

lied Investment Company, Walton

page

'■>

■

and a half times the combined
plus dividend) requirements.
^

Can

overall

(prior fixed

that the equity

assume

share of the strong American
corporation, with an impregnable balance sheet, in an age of
long-term expansion and integrated in our "corporate state",
with its dependence on corporate tax
revenue; is less safe over
the
long-term
than
the
debtor obligation?
And even if we

do,

cannot

the

technique

term

out

this

comparative
of amortizing

the

conclusion

A
value

cannot

surely at least
or

role

deficiency be compensated for by
the additional risk over the long-

dividend

excess

about

the

proved

income?

either

degrees of investment
But on the above basis,

way.

doubt about the bland assumption of the
fixed-interest medium is justified.

of the

comparative

•

superi-1

Variable

before the New

Intermediate

United

States

Steel

must

how

the

about

factor, which worries the
(throughout their recent testimony

Annuity's opponents

bonds

Fluctuation

fluctuation

Jersey State Legislature

implied
Let us

ran concern over

record of New

Debt

and

exceeds

its

normal

for

reinvested

depreciation

1955—-its

Since 1946, the increase in total
debt

reflected in the situation in other

industries

varying

de£rees.
If we are to attain our goal of

period by $111 billion, while last
year
the excess of increase in

debt

$23

was

billion,,

nearly

record during

must

bear

in mind

slackening in the growth of our
labor force, a tremendous amount
of capital must be spent on new

Comptroller of

Nevertheless,

the

disposable
compared

personal
with

19%

in-

have

fourfold

since

46%

income

1946.

of
as

vides

facilities

that

ways

such

fares.

rent
But

and

that it

the

was

commitments

be made without

Tax Revision

The

should

tax

laws

are

Concord

and

Estate

tion of the important role played

depreciation

viding

reserves

investment. funds,

pro-

which

gap between debt and
This can eventually bring

have contributed

income.
about

business

high living standards of this country. Revisions should be made to

would make debt

recession

which

payments diffi-

Warner

provide

flexible

much to the

policy

under

for its

Corporation
Electric

lack

'33

iri
a

4,066,655

'30

'■

3,121,943

City Terminal Corp. 6V2S '33___„ 2,431,570
1,850,000

National Bank Bldg. 6s '41
Pictures 6s '39

1,215,225

500 Fifth Ave. Corp. 6V2s '49
Elks Bldg., Brooklyn Lodge

No.

Brooklyn Manhattan Transit
•Entire

diversification,
$4,620,000*

'32

Bros.

1,034,038
879,131

22
'68

482,644^

issue.
we

must

remember

the World's

safest

that

the

even

investment,

showed

U.
a

Government

depreciation

10% below par in the market's registration of value in June, 1953.

overhauled in recogni-

widening
a

Gotham

Bond,

obsolete

agencies

banks,' surely

as a kind of liquid
secondary reserve.
list of the ten largest issues held by a single

New York City bank — notable
marketability and quality:

And

function

Following is

ress.

regulatory

York State banks closed during the period showed
shrinkage below cost ranging from-15% to 67%, with an average
37V2%.* A recapitulation of the surviving banks showed sim¬
ilar surprising bond portfolio performance—in face of the fact

atomic power. Everything possible must be done to
insure adequate business savings,
or seed money, so that these facilities may be soundly financed on

transpor-

other

and

tion, and

large scale since capital soending is the most powerful and convarying structive force in economic prog-

is true that the buying of homes
and durable goods on time pro-

by both

expert type of investing institution, with their
1929
aftermath was disastrous.
The
liquidation

Benenson

debt

constitute

bonds

conservative and

City 4s

than

purchase of

is made under the aegis of the

performance record

New York

now

cycle)?

previous New Era period—►

the

and

Currency

the actual

Gas

that

was

Associated

mortgage

market

1929 and its aftermath.

twice the annual average for .the facilities new products and proclast decade- Consumer credit and esses, including research, automaand

and

the first category, and under local supervision in the second case.

rate as in the past 10
then the shortage would be
around $240 million. This graphic
same

years,

dynamic expansion in the face of

—

the empiric

business

the

has

and" private

top of

national and state banks

exceeded national income for this

—public

that is,

record

the

year—by $140 million.
Should
the cost of new facilities rise at

important

jeopardizing the interest of the borrower,
the lender, or the economy.
The
danger comes when there is a

2727

and

one

interest

And

allowance

•

must

offices

Jackson

Ga.

net earnings test of a minimum of one and ^ Mialf^times fixq4»*
charges during a previous period. The preferred stock earnings

lem facing United States Steel is

a —

retary.

from

with"

Observations
^

presentation of the financial prob-

Treasurer; and Leota G. Bell, Sec¬

business

Building.

look

tation

V. L. Funke Opens

ATLANTA,
have become

plus

degree would be paid for in other

EVANSVILLE, Ind.—Victor L.
Funke is conducting a securities

(Special to The Financial Chronicle)

Securities Company of
Florida, Inc., 3898 Biscayne Boule-

profits

Jr., President; James A.
Blakeley,
Vice - President
and

Bryan,

Fla. —William

has

been
added
to
the
staff of Goodbody & Co., 21 South
Avenue.

Columbia

bullishness

1946

Co.,

Two With Allied Inv.

David

Tracy have become affiliated

*■

creased

G. F. Bryan Opens

Dobson

Hand,

home

Monto

SARASOTA,

°l

(Special to The Financial Chronicle)

MIAMI,

East

Peck

Goodbody & Co.

(Special to The Financial Chronicle)

Three With Columbia

amount

been

York City to
securities business.

With

Palm

spend $500 million annually. This

has

6 Northeast Second

Avenue.

the next five years, it is estimated

that

MIAMI, Fla.—William W. Soulby is now with King Merritt &
Company, Inc., Chamber of Com¬
merce Building.

economic

TvTt?+u

q«

persistently applied
in stride before credit'expansion
gains a strong momentum. Otherwise, in the event of unchecked
inflationary
developments, -the
Board would be compelled to use
the emergency brake, with a resultant
the
staggering
jolt
to

restraints

Growing GAP Between Income

New

Street,

engage

Co.

Opens

Joins King Merritt
(Special to The Financial Chronicle)

also

charles S

economy.

;

but

pio

that

staff

Ainsley

Building,

not only fortify

per ton of
capacity to
plant built in 1930. For
replacement and new capacity for

replace

decade

past

the

Kakouris,

much

effectively
in a period

boom,

for

half,

tasks

prolonged

the

economy.

out

carry

its

have

the American

support of

sound

should

Board

serve

has

40% in the last decade, i.t has been

mining the purchasing power of
the dollar, and thereby discouraging savings which are so essento

Kouchala-,

changed

inflation

sustainable

This is clearly ih-

and labor has more than

under-

economy,

Makris

added

corrosive effect upon capital

and expansion.

guard

potentialities

the

savings by shrinking the purchasing power of funds for promotion

the granting of excessive

disrupting

Fla.—Peter

been

half,

has

vard.

Spiral

had

mounts,

must

kos

(Special to the financial chromr. *•)
MTamt

first

the

construction,

time

;

in the 1930's, when
capital funds was re¬

history there was no
gain for that decade in production,
or in the well-being of our people.

against the deterioration

«same

MIAMI,

country

0f values. While the Board's func— dicated in the steel industry. Since
tions are to provide reserves for the end of the
war, the cost of
sustained
economic
growth,
at iron ore, steel scrap,
the

(Special to The Financial Chronicle)

our

Bache Adds to Staff

evi-

Pr°gres\would halt and

infla-

With Makris & Kakouris

stage

keeping with the aspirations of the" American people.

then stagnate, as happened in our
0wn

othef line

estimated
is
for the dynamic growth

retreat

pressure

would

defense

against

falter

^inflationary

have

the amount,
form
or
time
of the respective
sales has not yet been determined,
but

bulwark

Should

staunch

1958,

years, - while
that around 8%

the

Board

Reserve

1286 Palm Avenue.

nnt

may

too

economy against the insidious
of

William

^loanfc^o'0!^

—

?!?" oi Adams Sloan & Co., Inc.,
Adams,

slowing down

ma,r

necessary

dis-

down

our

-ure
we

for

vears

five

Wage-Price

April 18, 1956, will be needed to
meet
its program through
1958.
It
is
expected that such funds
will be obtained through the sale
of mortgage bonds and stock in
and

slowed

SARASOTA, Fla.

boom,

1957

that
that

so
so

growth

April for the fifth
a
year in
order to

and

at 'the

savings pattern must

provide

productive capacity. The

our

agaiftst

...

pany

rate

the

re-

de-

made,
nf
ir,'
of in¬

not

welfare

borrowing and

five

that, the

raised

future

nreredinf*

Board's action took the edge off

com¬

rate
■

stockhold-*

rights to subscribe at $27 per

Rrt01-

the

arrived

the

compared

keep the demand for credit in line

J The Pacific Power & Light Co.

ers

situation

Reserve

are

(Special to The Financial
Chronicle}

spending up
in the rate of savings by individuals and business enterprise. The

savsav-

only 6.3%

were

it by

encourage
nnUr

de-

have

influences

for

way

^at,Tbf,if^Son
time

Is offering its common

the

capital
adequate

country demands

dence clearly points to the fact
that the degree of progress of any
nation is measured by its accumulated savings.
'

paves

Adams, Sloan Adds

young

shortage

Barnett Building.

Pany>

difficult

chnrban

funds

income
as
personal
i
for
the
with
7.3%

count

need

Pacific Power & Light
a

year

disposable

.....

preceding

and

may

...

wages
rather than an expansion of outpu^ as incjicated by the sharp increase in bank loans in the face

Federal

the

att.rart.ive rewards." Personal
attractive rewards." Personal

maV

vestment

United States
give evidence
that
for
its
long-term
growth
the country needs a higher rate

capacity to

estimated

events

velop thrift and

operating at

and

it
for

Unless

where

"Economic

whpn" it
when* it

was
was

there

Brice has been added to the
staff of Williams Investment Com-

Such pro-

allowances

that

superimposed

was

mv
the'economy

(special to the financial chronicle)
:
.
% "JACKSONVILLE, Fla-"-Vincent

distant future,

equipment
upon

quirements.

coun¬

find

funds

particularly

small

which

obtain

preciation

of savings.

J1®",produce. This

cost

intoler-

cases

try is urgently needed.
Under¬
secretary of the Treasury W. Randolph Burgess recently observed

ieveijng 0ff
industrial proIn other words, greater
^ ■;demands are being -made 1 upon
to be se- the ec0nomy than its

are

many

A revival of thrift in this

ization^of; the.^ Interstate;' Com- dUCti0n.',
Commission. i.:;

merce

breaking spending for plant and

Inc.

Co.

Continuing,
the
bank
the pinch came in the first

says,

half

Stuart &
$4,020,000

and

level since the

The

says

and

technology.

would

beneficial

able.

rates

money

Letter."

Halsey, Stuart Offers

offering

and

cult

supply

tional Bank of Boston in the

Nickel Plate

modern

visions

inflation."
and

capital

the

available funds,

rent

i Halsey,

for

\X/:il*

J°lnS Williams Inv.

the

tain

credit

have

may

depreciation

original

our

■

industries

basis,

wage-price spiral, adequate capital to attain dynamic
tax law revision, and the "insidious influences
of

all

accelerated

The First National Bank of Boston urges "a revival of thrift
in this country" and refers to the recession danger that

war

'■O

great¬

never

Dangers in Widening Debt-Income Gap

with the
Marxist
factions
is passing.
In
time
their philosophy also will
The

er.

Hence:—wholly irrespective of one's stand on the desirability
of the proposal to introduce variability into annuities, and with¬
out regard to defense against inflation, we must realize that the
common

★

stock holds

Footnote:——cf.

Wilfred

ch.

monopoly

Investment

risk or flnctuability.

Operations

Commercial

Banks,

Ma^ in The Banking Situation, (Columbia Univ. Press, 1934).

(202)

Securities
Abundant Uranium, Inc.,

Now

Grand Junction, Colo.

stock
of

share.
ment in

plant, additional equipment and
Office—611 West Main St., Corry, Pa.
Henry M. Margolis and Leo A. Strauss,
company.

Allied

;

C,- -t'
Oil

Industries

Corp..--.

to be bor¬

^ Allied Products Corp.
July 2 (letter of notification) 42,857 shares of class A
stock (par $1). Price—$7 per share.
Proceeds
—For construction, equipment and working capital. Of¬
fice—2700 23rd St., North, St. Petersburg, Fla.
Under¬
writer—Atwill & Co., Inc., Miami Beach, Fla.
.

rowed

Co., Milwaukee, Wis.

(7/23)

•

Allis

'
„

•

construction..

\ ".L

'
.

cent).

Price

—

construction.

ers.

•

com¬

Witter

First

Boston

amount.

—

Underwriter—Columbia Securities Co., Inc. of California,
Beverly Hills, Calif.

Proceeds—To retire indebtedness of the
affiliates for money borrowed for

to its

pany

Underwriter

purposes.

400,000 shares of

—

American Tar & Turpentine
Co.,
June 5 (letter of

20%-year

5%%

Inc.

subordinated debentures due
May 15,
20,000 shares of common stock (no
par) to be
offered in units of 10 shares of common stock and
$100
of debenture. Price—$110 per unit.
Proceeds—For inilling a new plant in Winfield, La. Office—219 Carondelet St., New
Orleans, La. Underwriters
Scharff &
Jones, Inc., and Nusloch, Baudean &
Smith, Inc., both
of New
Orleans, La. Withdrawn from registration. To
be offered only in
Louisiana.
—

Arden Farms Co., Los
Angeles, Calif.
June 15 filed $4,099,300 of 5%
subordinated debentures
due July 1, 1986
(convertible until July 1, 1964) and
common

stock (par

$1). The debentures

capital.

Office — Baltimore, Md.
Underwriter
William H. Burton is President of
company,

—

None.

—

Underwriter—None.

•

Big Horn Mountain Gold & Uranium Co.
Feb. 23 (letter of
notification) 9,300,000 shares of com¬
mon stock (par one
cent). Price—Three cents per share.
Proceeds—To be used for
exploratory work on mining
mineral properties. Office—1424
Pearl Street,
Boulder,
Colo.
Underwriter—Lamey & Co., Boulder, Colo.
Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification)
1,000,000 shares of class
A common stock
(par five cents). Price
10 cents
per

Black Hills

Power & Light Co.
(letter of notification) 11,700 shares of
common
stock (par $1) to be offered
for subscription
by stock¬
holders. Price—To be
supplied by amendment. Proceeds

—For construction costs.
der writer—N one.

San Francisco

all

offices

Office—Rapid City, S. D. Un¬

Chicago
Boone

Cleveland

;

and

Lehman

"Brothers,

Offering—Temporarily postponed.

& Co. Inc., Kuhn,
all of New York.

• Col-Ny Uranium, Inc.
July 3 (letter of notification)

1,500,000 shares of com¬
stock (par one
cent). - Price—20 cents per share.
Proceeds—For mining expenses.
Address—P.

mon

1357, Cortez, Colo.
Colonial
■June

Utilities Corp.

Box

;

June

Underwriter—None.

(letter of notification)
$109,245.50
amount of 6% convertible
subordinate
of

1966 to

be offered

stock

common

(Each

$100

the

for

rate

principal
debentures, due
subscription by holders
of $1.30 for each
share

debentures

convertible

into

common

stock.)--Price—At 100% ;of principal
working capital, construction,
purchase of Dover plant, etc. Office—90 Broad
St., New
York, N. Y. Underwriter—None.
V
:

amount.

Proceeds—For

•

Colorado

June

cents).

Springs Aquatic Center, Inc.

filed

500,000 shares of common stock
Price—$1 per share. Proceeds—For

•

(par

swimming

pool and related activities, bowling alley, site
preparation
including parking, and land cost ($95,000), Underwriters
L.

Weir

Co., Colorado Springs, Colo.; and

June 21

8,000 shares of common
(no par). Price—$35.50 per share.
Proceeds—For
working capital. Office
345 Harris
Ave., Providence,

June 26

Private IVires

Co.

stock

—

Philadelphia

Underwriter—Gold¬

intention

Copley & Co.

—

Pittsburgh

•

to offer for sale at this time
Price—At par ($300 per share). Pro¬
construct and operate a recreation resort.

★ B-l-F Industries, Inc.
July 3 (letter of notification)

—

Boston

v-/" V'-'

Underwriters—Dillon, Read

►.

—Arthur

r :

share. Proceeds
For mining expenses.
Office
762
Denver Club Bldg., Denver, Colo.
Underwriter—Birkenmayer & Co;; Denver. Colo.

New York

Loeb

University Ave.; Provo/

—

Strum

Statistical

company's sub¬

sidiaries.

Underwriter—Thomas Loop Co., New
Orleans, La.

Frozen Food Storage, Inc.
May 14 filed 15,000 shares of preferred stock
(par $50)
and $100,000 .convertible
debenture bonds.
Price
At
par.
Proceeds—For capital expenditures and
working

Funds

May 17 filed $75,000,000 of debentures due June
1, 197l.
Price—To be supplied by amendment.
Proceeds—Pri¬
marily for furnishing working funds to

Beta

notification) $200,000 principal amount,

1976 and

63,614 shares of

notification) 150,000 shares of common
Price—$2 per share. Proceeds—For min¬
Office—290

Price-

Proceeds—For invest¬

Towne, Inc.,
Surveys Ltd.,
Underwriter—Hayden, Stone & Co..

Mutual

,.1

—

shares of

expenses.

(7/18)

Office—Upper Marlboro, Md. Underwriter—None.
■.'y.
C. I..T, Financial
Corp... J

held.

ing

class

To be supplied by amendment.
Proceeds
To
$3,500,000 of term - notes currently outstanding

June 29 (letter of
stock (par $1).

Utah.

and

company's

ceeds
,

(par $1).
Price
$2.50 per share. Proceeds
To expand service
business.
Office
Birmingham, Ala.
Underwriter
Odess, Martin & Herzberg, Inc., Birmingham, Ala.
•

—

+ Bentomite Corp. of America

stock

common

each

only 2,500 shares.

...

10 filed

Chesapeake Shores Country Club, Inc.
May 29 filed 5,000 shares of common stock, of which it Is

the

and

Treasurer.

American Insurors'
Development Co.

supplied by amendment.
Investment Advisers—Van

Sachs & Co.; New York.

man,

None.

—

Automation

corporate

the

and for general corporate
purposes.

Industries Corp.,
Washington, D. C.
May 11 filed 179,000 shares of common stock
(par $1).
Price—$5.25 per share. Proceeds—For
working capital
other

prepay

com-

Harry Kahn, Jr., of Washington, D.
C., is President

Price

due

Underwriters—Halloweil, Sulzberger & Co. and
Charles A. Taggart &
Co., Inc., both of Philadelphia, Pa.,
Weill, Blauner & Co., Inc. of New York.

and

Champion Paper & Fibre Co.: (7/26)
July 3 filed $20,000,000 of debentures due July 15, 1981.

and

90%

•

working

capital.

least

New York.
.

new

—

hold

Montreal, Canada.

Corp., Philadelphia, Pa.
June 11 filed $600,000 of 6%
convertible subordinated
debentures due June 15, 1968.
Price—100% of principal

Co., San Francisco and New

American Horse Racing
Stables, Inc.
May 11 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per
share). Pro¬
ceeds
For organizing and
operating a racing stable.
Office—Virginia and Truckee Bldg., Carson City, Nev.

Underwriter

Husky Oil Ltd., Calgary, Alta., Canada

(par $1) to be offered in exchange for the out¬
standing stock of Husky Oil & Refining Ltd. on the
following basis: One share of Canadian Husky common
for each Husky Oil common share of
$1 par value and
one share of Canadian
Husky preferred stock for each
Husky Oil 6% cumulative redeemable preference share
of $50 par value.
The exchange will become
effective
if, as a result of the exchange offer, Canadian
Husky

New York,

Atlas Credit

York.

Feb.

Co.,
.

stock

ment.

Corp.,

bidding. Probable
Inc.; Shields & Co.; The First Boston Corp.; Dean
Witter & Co. and Lazard Freres & Co.
(jointly). Bids—
To be received up to 11 a.m.
(EDT) on July 16 at
90 Broad St., New York 4, N. Y.
;
I. 1/1
Atlantic Oil Corp.,
Tulsa, Okla.
•
April 30 filed 2,000,000 shares of common stock
(par $1).
Price—$1.50 per share. Proceeds—For working
capital

general corporate purposes.
named by amendment.

65,000 shares for certain selling stockhold¬
be supplied by amendment. Proceeds—

Dean

June
-

and

(7/17)

To be advanced to Altec
Lansing Corp., a wholly-owned
subsidiary, to be used for its expansion program. Under¬
—

Proceeds—For

Dulles

Canadian International Growth Fund Ltd.
15 filed 625,000 shares of common stock.

determined by com-bidders: Halsey, Stuart &

Co.

Price—To

writer

The

Underwriter—To

petitive

June 26 filed 100,000 shares of capital stock
(par $1), of
which 35,000 shares are to be offered for account of the
company and

—

Atlanta Gas Light Co. (7/16)
June 20 filed $5,000,000 of first
mortgage bonds
1981.
Proceeds—To reduce bank loans and for

10 cents per share.

Companies, Inc., New York

Underwriters

Canadian

will

•

Proceeds—For mining expenses. Office—10th and Grand
Ave., Grand Junction, Colo. Underwriter—None.
Altec

Husky Oil; and Canadian Husky reserves the
right to declare the exchange effective if less than
90%,
but more than
80%; of such shares are to be so held.

York; and Courts & Co. and The Robinson-Hum-/
phrey Co., Inc., both of Atlanta, Ga.
:

(7/23)

Uranium, Inc.
'
~:
July 5 (letter of notification) 2,880,500 shares of
one

share.

per

•/.

•

June 29 filed 71,363 shares of 6% cumulative
redeemable
preferred stock (par $50) and 1,069,231 shares of common

stock

Light Co.

New

Alta

(par

Gas

(with an oversubscription priv-;
ilege); rights to expire on July 31, 1956.
Price—$25.50
per share.
Proceeds—To reduce bank loans and for new

Co., Inc., Milwau¬

stock

Atlanta

for each 10 shares held

.of record July 18, 1956 at the rate of one new share for
each five shares held; rights to expire on
Aug. 6. Price
-—To be supplied by amendment.
Proceeds—To repay
bank loans,
and for expansion and working* capital.
Underwriter — Robert W. Baird &

mon

—

June 20 filed 88,280 shares of common stock
(par $10)
being offered for subscription by common stockholders
of record July
10, 1956 on the basis of one new share

filed 47,729 shares of common stock (par $10)
offered for subscription by common stockholders

kee, Wis.

25-year 5% registered convertible debenture notes; 1
$1,500,000 of 5% coupon bearer bonds. Price
Of"
stock. $50 per share; and of notes and
bonds, 100% of
principal amount.* Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.
Underwriter—None.
and

;

Co., Inc.. Milwaukee, Wis.
Co., Milwaukee, Wis.

Grocers, Inc., Seattle, Wash.
April 20 filed 5,703 shares of common stock; $2,000,000

Price—To be supplied by amendment. Pro¬
repay bank loans.
Underwriter—Robert W.

(Louis)

Price—$25

Underwriter—Janney,

*
'
) :
^ Brewster-Bartle Drilling Co., Inc.
^ '* v /. '
»
July 2 (letter of notification) 25,000 shares of common
stock (par $2).
Price—$7.75 per share. Proceeds—To
two selling stockholders.
Office—Esperson Bldg., Hous¬
ton, Texas.
Underwriter :— Rowles, Winston &
Co.,
Houston, Texas.;
1
^

•

insurance

Associated

July 1, 1976.

June

from

companies, for construction or
acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriter—
Reynolds & Co., Inc., New York.

June 29 filed $3,000,000 of sinking fund debentures due
ceeds—To

common

Baird &

ISSUE

REVISED

„

(letter of notification) 150,000 shares of capital
(par 10 cents). Price—$2 per share. Proceeds—
For the acquisition of oil and gas leasehold interests
and working capital. Office — 403 Wilson Bldg;, 2601
Main St., Houston, Texas. Underwriter — Muir Invest¬
ment Corp., San Antonio, Texas.; D. N. Silverman & Co.,;
New Orleans, La.; Texas National Corp., San Antonio,
Texas.; Charles B. White & Co., Houston, Texas.; and
Reed and Sloan Co., Dallas, Texas.

(Louis)

stock

Allis

June 14

•

capital.

ADDITIONS

SINCE

ITEMS

Inc., Philadelphia, Pa."

stock.

share for each 4% shares held.

new

eight shares held.
working

Thursday, July 12, 1956

• Arizona"Uranium Corp.
July 2 (letter of notification) 1,786,000 shares of common
Price—At par (10 cents per share).- Proceeds—
*
v
California interstate Telephone Co.' (7/16-20)
For mining expenses. * Office —' 710 South Fourth
St., V June 28
filed 50,000 shares -of'5% % cumulative conworking capital. * Las Vegas, Nev.: Underwriter—None./
'SvWvertible preferred stock (par
$20).- Price—To be sup- "
•
Underwriters—
Armstrong Rubber Co." (7/23-26)1/ v
plied by amendment; Proceeds—To discharge current
directors of the ■ May 31 filed $9,250,000 of convertible
subordinated
short term bank borrowings
aggregating $1,000,000." Un¬
.debentures due June 15. 1971; Price—-100% of
principal *' derwriters—William R. Stdats &t
Co., Los Angeles, Calif.
.i; amount.
Proceeds—Together with $7,750,000

to be offered to stockholders on a basis
Price—$2 per
Proceeds—For relocating machinery and equip-

(par $1)

one

subscription by preferred stockhold¬

* INDICATES

•

holders at the rate of one share for each 10 shares held.
Price — To be supplied by amendment. Proceeds — To
repay bank loans. Underwriter—None.

Aero Supply Mfg. Co.,. Inc.
June 4 (letter of notification). 103,903 shares of common

Chronicle

ers at the rate
of $10 principal amount of debentures
for each preferred share held, while the common shares
are
to be offered for subscription
by common stock¬

(letter o£ notification) 3,000,000 shares of com¬
(par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo.: Underwriter—Ralph M.
Davis & Co., Grand Junction, Colo.
stock

to be offered for

are

Feb. 23

mon

The Commercial and Financial

June 25

County Coal Corp., Philadelphia, Pa.
(letter of notification) 10,000 shares of
common

stock (par $5) to be offered first
to
of record June 25 at rate of
one

common
new

stockholders

for

each

Commercial Life Insurance Co. of Missouri
(letter of notification) 50,000 shares of common

stock

Price—$5.50
eral

funds

offered
per

and

initially to stockholders

share.

(par $2).
Proceeds—To be added to gen¬
of business.
Office—5579

for expansion

Pershing Ave., St. Louis, Mo.
Jones & Co., St.
Louis, Mo.

Underwriter—Edward D.

Commodity Fund for Capital Growth, Inc.
May 28 (letter of notification) 60,000 shares of
common
stock (par

$1). Price—$5 per share. Proceeds—For
trad¬
ing in commodity future contracts. Office
436 West
20th St., New York
11, N. Y. Underwriter
Arthur N.
Economu Associates, New
York, N. Y. *'
"
—

—

Commodity Holding Corp.
6 (letter of
notification) 3,000,000 shares

June
mon

stock

com¬

(par five cents). Price—10 cents
per share.
Proceeds—To trade in commodities.

Office—15 Exchange
Place, Jersey City, N. J. Underwriter
Southeastern
Securities Corp., 335
Broadway, New York.
—

Commonwealth, Inc., Portland, Ore.

March 23

(letter of

notification) 5,912 shares of 6% cu¬
being offered for subscription
by stockholders of record
April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956.
Price—At par ($50
per share).
Proceeds
For working
capital. Office
Equitable Bldg., 421 S. W. 6th
Ave., Portland 4, Ore
mulative preferred stock

—

Underwriter—None.

Number 5550

184

Volume

.The Commercial and Financial Chronicle

(203)
Connecticut Water Co., Clinton, Conn. (7/17)
tiled 45,000 shares of common stock (no par).

selling stockholders.

June 25

Price—To

supplied by amendment. Proceeds—To¬
funds from private sale of bonds, to be
water properties and franchises of
Connecticut Light & Power Co.
Underwriter—Putnam
& Co., Hartford, Conn.
to

•

June
due

filed

$380,000

Co.'

"...

Continental Equity
28

filed

Springs, Colo.
Denver, Colo.
•

Securities Corp.

York.

Co.

Controls

•

Schiller Park, III.

(7/18)

shares of common stock (par $5).
supplied by amendment.
Proceeds—To

Corp.

(Texas)

bank loans, and for expansion and working
—
Lepow Securities Corp.. New

Underwriter
letter

notification

has

been

withdrawn,

Cummins Engine Co., Inc.,

Columbus, Ind. (7/17)

100,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To
cer¬
tain selling stockholders.
Underwriter—A. G. Becker &
Co., Inc., Chicago, 111.
V

June 28 filed 325,711
Price—To

mining
San Rafael,
Colorado
Skyline Securities, Inc.,

June 26 filed

v;''.,

—

shares of

■'

of America,

East

(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds

This

Proceeds—For mining expenses. Office—1730 North
7th
Street, Grand Junction, C<ao. Underwriter—Columbia
Securities Co., Denver, Colo.
Delta Air
June

and, it is understood, a full registration statement will
be filed latter
covering a proposed issue of about 250,000
common stock at
$2 per share.

derwriter—None.

stock

capital.

1902

Underwriter

Minerals

—To repay

stock, 50 cents per share. Proceeds—To in¬
capital and surplus. Office—Alexandria, La. Un¬

crease

Cullen

March 30

'(par $5) and 80,000 shares of class.B common stock (par
!50 cents). Price—Of class A stock, $12.50 per share, and
.of class

(par $1).

Mining & Milling Co., Inc.

Office

expenses.

shares of class A common stock

40,000

stock

March 8 (letter of
notification) 575,000 shares of common
Price—50 cents per share. Proceeds—For

March

(7/24)

common

stock.

;

■

Dalmid Oil & Uranium, Inc., Grand
Junction, Colo,
April 16 (letter of notification) 2,700,000 shares of com¬
mon
stock'(par one cent).+ Price—10.cpnts per share.

Devall

July 12
Puerto Rico

r--.
'*

L".).y{Tfie First Boston
'

corp.; -

ISSUE

Land & Marine Construction

Food Machinery
;

&S&*

;

Ju,y 13
San Jacinto Petroleum
(Offering

>v■;>;

May

(letter of notification) .150,000 shares of com¬
mon stock (par
$1). Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital.
Office—1111 No. First Ave., Lake
Charles, La. Underwriter—Vickers Brothers, Houston.
Tex.

★ De Vegh Mutual Fund, Inc., New York
July 2 filed (by amendment) an additional 35,000 shares
of capital stock (par $1). Price—At market. Proceeds—
For investment.

July 16

-•,

Atlantic

Gas

(Monday)

—

Uranium

Center

(William

Staats

Consolidated Water Co.—-.Debens.
Milwaukee

(The

Co.;

Indianapolis

Barley,

Bond

Harden

Inc.;

Co.

Inc.;

Blyth

Co...Preference
Inc.;

Co.,

and

Merrill

(Thursday)

.Debentures
$20,000,000

July 17

k*':

Altec Companies,

,r -.(

Gold Seal Dairy Products Corp
'
(AH State Securities Dealers, Inc.)

.vf,,
v

(Dean

Connecticut

■

,<•

Witter

Water

(A.

Delta
?

;:.

Lines,
;

El Paso

;

(Bids

Michigan

;

stockholders

.-Western

■

Natural

White,

of El

Gas

Weld

Co.—to

Co.)

Co.

underwritten

v.1:,

(Bids

EDT)

a.m.

$40,000,000

(Hayden, Stone & Co.)

Controls Co. of America.

*V\
•

'-y.

Lynch,

Pierce.

(May be

Fenner &

Beane)

325,711

(Vickers Brothers)

Kansas

(Offering

underwriting)

stocauioiaers—no

42,000

'Viekers

r'r

Superior

Oil

(Dillon,

$9,650,000

Co.

July 19

New

England

(Offering

$o0,000,0ud

-National

(Thursday)

Loeb

Research

(Paine,

Corp

Webber,

Curtis)

North American Coal Corp
(Dominick

,■>

Dominick

Radalite

and

(Goldman,

st&cha

Telephone

(Offering

stockholders—no

(Bids

Kraus)

(Bids

.Debentures

September 12

$30,000,000

(Louis)

(Robert

Allis

(Louis)

(Bids

Co
Baird

Co.,

Inc.)

(Bids

$3,000,000

Rubber

(Bids

Debentures

(Reynolds & Co.,

Inc.)

(Lepow Securities Corp.)

$15,000,000

'Bids

Co.)

Common
125,000

(Bids

Northrup
(Smith,

invited)

invited

a.m.

CDT)

$20,000,000

Bonds

$£0,000,000

Debentures
$30,000,000

(Wednesday)
Bonds

(Bids 11 a.m. EDT)

Preferred
11

a.m.

November

Common
115,000 shares

$28,000,000

Ohio Power Co
EDT)

Metropolitan

Edison
(Bids

$6,000,000

(Tuesday)

Co
invited)

Under¬

Wyo.

incident to mining operationa.
Underwriter—Philip Gordon

General Precision
20

vertible
of

filed

59,445

stock

common

Equipment Corp.
shares

of $1.60 cumulative con¬
(no par) and 59,445 shares
(par $1) to be offered in exchange for

preference

stock

preferred stock and

common

stock

Graflex, Inc.

in the ratio of one-quarter share of General
preference
and one-quarter share of General common stock in ex¬

were

for

each

Graflex

Graflex common share, with each
preferred stock being treated as if it

five shares of Graflex

common

stock.

Underwriter

Statement expected to become effective

July 16.

it General Tire & Rubber Co., Akron, O.
July 5 filed 134,717 shares of $5 cumulative preference
stock (par $100) and 134,717 warrants to purchase a like
number of shares of common stock (par $2.50) to be
and preferred stock of
one

share of General's

preference stock and a warrant to purchase one common
share for each 3^3 shares of Byers common stock. The

exchange ratio in respect to the Byers preferred stock is
be supplied by amendment.
The General company
has also agreed to purchase from J. F. Byers, Jr., and
B. M. Byers a total of 60,000 shares of Byers common

stock for

aggregate price of $1,800,000.

If certain con¬
met, the company is obligated to purchase
the 60,000 shares for an aggregate of 18,000 shares of
General's cumulative preference stock of a series con¬
taining similar terms and provisions to the company's
ditions

are

not

outstanding $5.50 series A shares.
Bonds

810,000,000

facilities.

Co., Inc., New York 6. N. Y.

offered in exchange for common
A. M. Byers Co. on the basis of

(Tuesday)

Bonds

Barney & Co.)

$15,000,000

Ohio Power Co

(Bids

Leeds

Bonds

invited)

Bonds

$300,000

(Tuesday)

Simonds &

(Baker,

Power

expenses

—None.

$20,000,000

Columbia Gas System, Inc

...Common

Copeland Refrigeration Corp
Illinois

Invited)

October

July 24

Proceeds—For

Office—Kemmerer,

—Bonds

(Wednesday)

October 2

$9,250,000

Popular Plastic Products Corp

Hills Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of com>stock (par five cents). Price — 25 cents
per shara.

mon

5%
Bonds

(Tuesday)

September 25 (Tuesday)
Virginia Electric & Power Co

Common

(Offering to stockholders—to be underwritten by Robert W.
Baird & Co., Inc.) 47,729 shares

Armstrong

Common

$40,000,000

Northern States Power Co

Debentures

expansion

★

(Wednesday)

be invited)

and

June

Carolina Power & Light Co

(Monday)

July 23
Allis

$61,301,000

underwriting), $58,053,100

September 11

In¬

Corp., San

Gas

General Telephone Co. of California

modernization

change

250.000 shs.

Fund, Inc.

writer—Kidder, Peabody & Co., New York.

$10,000,000

invited)

Mutual

Machinery & Chemical Corp. (7/25)
28 filed $30,000,000 of sinking fund debentures
July 15, 1981. Price—To be supplied by amendment.
Proceeds—To repay $15,500,000 of promissory notes and
for

(Friday)

National

due

Debentures

Bonds

Telephone

com¬

Proceeds—For

Food

Telegraph Co.__Com.

be invited)

share.

dent.

$78,000,000

underwriting)

per

shares to net asset value plus a distributing charge.

$30,000,000

cents

(Wednesday)

September5

$299,250

Co.)

Invited)

r. -

June

Southern California Edison Co

♦

Common
Brothers)

Bell

Common
&

(J. P.) & Co., Inc

$6,000,000

:
Burge

Price—22 %

Corp.
(VicKrrs

Stevens

Bah,

Underwriter—White^

vestment Adviser—First National Investment

(Tuesday)

Debentures

Jackson

Corp.) ,$8,000,000

PuT)

a.m.

August 31

-Lt

$o0,0G0,000

CO.)

(Tuesday)

stockhoiaers—no

(Bids

Bonds

(Kuhn,
'-

Co.

Steel

8:30

loans.

Francisco, Calif. Underwriter—First National Securities
Co., same city, of which Wiley S. Killingsworth is Presi¬

Tampa Electric Co

Illinois
Inland

:Preferred

Securities

: ' I*

(7/31)

will declare itself an open-end investment company
change the offering price of the remaining 40,000

Jan.

Debentures

inc.)

■

—

Read

and

(Thursday)

August 29

.Common

Brothers)

Union

(Bids

Corp.—a

Cement

•

$40,000,000

Consolidated Natural Gas Co

Republic

Common

$3,750,000

Bonds
EDT)

August 28

Power & Light

stock.

First

(Tuesday)

11:30 a.m.

(Bids

$300,000

Co._—
—Common
(The First Boston Corp.) 270,000 shares
Marquardt Aircraft Co
Common

'f*
"!<

Co.

June 27 filed 50,000 shares of common stock
(par $1), of
which 10,000 shares are to be offered for sale at
$10 per
share to not more than 25 people, whereupon the com¬

Pacific Telephone & Telegraph Co..___Debentures

Devall Land & Marine Construction Co., Inc.—Com.

Inc.)

August 21

and Merril

Inc.;

Otis,

August 16

Common

(Lee Higginson Corp.; A. u Becker & Co.,

^
Gas

Proceeds—To reduce bank
Weld & Co., New York.

Bonds

(Bids

—"

625,000 shares

Co.___—

$25,000,000

yCentral Illinois Light Co.—

••

Ltd—Com.

Fund,

Line

EDT)

Natural

mining expenses. Office—516 First National Bank Build¬
ing, Boise, Idaho. Underwriter—None.

Consumers Power Co..

(Wednesday) "..o",:*
Growth

Pipe

Ltd.,

filed 250,000 shares of cumulative preferred
(par $100). .Price—To be supplied by amendment.

mon

—Bonds

$10,000,000

(Wednesday)

a.m.

August

July 18

International

;

pany
'

*''

Canadian

(Bids

(Gearhart

r-"

Bonds
11

a'mt-

Union Electric Co

•

1,400,000

Colo.

★ Eureka Silver King Mines Corp.
June 27 (letter of notification) 160,000 shares of

$25,000,000

EDT)

a.m.

Co., Denver 2, Colo.

Paso

stock

•>

—Preferred
Co.)

Minerals, Inc.

...Common

Natural Gas

Paso

Wisconsin

•-

(Offering

Weld

July

Common

(Tuesday)

August X

Inc.———————^Common
125,000

Collins,

★ Easy Lift Inc.
July 2 (letter of notification) 7,000,000 shares of common
stock. Price—At par (two cents per share). Proceeds—
For
advertising, developing, producing and working
capital. Office—705 Judge Bldg., Salt Lake City, Utah.
★

$1,000,000

Jersey Central Power & Light Co

100,000

Gas

(White,

——.Common

Inc.)

Co.,

Natural

._L_———Common

(Courts & Co.)

100,000

45,000

Rare Metals Corp. of America—

;

Common

Co., Inc.—

Becker: &

Air

Co.)

Co.—

; (Putnam & Co.)

Cummins Engine

July 31

—

Fort

Underwriter—None.

'——Class A

Mica & Minerals Corp. of America.
J
'
(Peter Morgan & Co.) $570,000

and

$642,000

(Tuesday)

Inc.—

;

(Monday)

(

Corp.,

(regulation "D") 50,000 shares ©f common stock
(par $1). Price—60 cents per share. Proceeds—For gen¬
eral corporate purposes.
Underwriter — Foster-Mann,
Inc., New York.

Equip. Trust Ctfs.

Service

July 30

■

•

£lass A StR.

Co.,

Share Corp.)

Under¬

Toronto, Canada

CDT) $3,645,000

noon

Public

(Goldman, Sachs & Co.)
..

Preferred

Colo.

June 4

$1,000,000

Co.)

Republic

Grand Junction,

Eastern-Northern Explorations,

$30,000,000

Champion Paper & Fibre Co

—a_Bonds

California Interstate Telephone Co.—.
.

Indiana

July

i;iV

$5,000,000

s'DT).

a.m.

Bldg.,

writer—Columbia Securities Co., Denver, Colo.

Lynch, Pierce, Fenner & Beane) $14,837,760

■

Light Co
(Bios

(Central

by^^Jt

underwritten

(Wednesday)

(Kidder, Peaooay & Co.)

Northern

Cordon

Corp.__

(Bids

(Priday)U'v-^'^PC;

stockholders—to

;

it Diversified Resources, Inc.
July 5 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
^Proceeds
For mining expenses.
Office — Suite 16,

& Chemical Corp.—Debentures

Missouri-Kansas-Texas RR._.

White, Weld & Co.) 300,910 shares

Co., Inc.

(7/18)

Securities

July 25

Authority.__2lfen^s

Ac CO. ana 3.
$22,000,000
4

Co.)

(par $3).
Proceeds—For
Underwriter—Courts & Co-

per share.
Proceeds—For mining expenses. Office—155 North Col¬
lege Ave., Fort Collins, Colo. Underwriter — Columbia

CALENDAR

auupt

a**

Ingen

stock

(March 26 (letter of notification) 2,997,800 shares of com¬
mon stock
(par one cent). Price •— 10 cents

(Thursday)- ;v

Water Resources

(7/17)

125,000 shares of common
supplied by amendment.

general corporate purposes.
Atlanta, Ga.

Douglas

NEW

Lines, Inc., Atlanta, Ga.

19 filed

Price—To

Crater Lake

mon

.,V

—Baker, Simonds & Co., Detroit, Mich.

June

surance

125.000

Price—To be supplied
by amendment.
Proceeds—For
capital expenditures and working capital. Underwriter

111. (7/16-20)
convertible debentures

Refrigeration Corp.

July 2 filed

1,-1976 and 26,000 shares of class A common
stock (oar $10). Price—Of debentures, 100% of principal
amount; and of stock, $12 per share. Proceeds—For
payment of bank loans and other obligations totaling
$184,000, and for the purchase of securities of company's
subsidiaries. Underwriters — The Milwaukee Co., Mil¬
waukee, Wis.; Hariey, haydon & Co., Inc., Madison,
Wis.; and Indianapolis Bond & Share Corp., Indianapolis.
-Ind. Debentures reported sold to Massachusetts Life In¬

Copeland

purchase

Consolidated Water Co., Chicago,

•

ner

with

gether

used

Underwriter—Lee Higginson Corp.,
Inc.. and Merrill Lynch, Pierce, FenBeane, all of New York and Chicago.
**

A. G. Becker & Co.

Continued

page

•1#

The Commercial and Financial Chronicle

(204)

Continued from page

.,i'

•

JT»n

(N. J.), New York

400,000 shares of common stock

filed

Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.

•

General Uranium Corp.

(par 10

Illinois Power Co.

•cents). Price—$1 per share. Proceeds—For plant facil¬
ities. survey of property and underground development
"Underwriter—None. Maurice Schack, Middletown, N. Y.,
is President. Statement effective March 11.
•

Giffen

Industries, Inc.
notification) 80,000 shares of common
stock (par $2.50).
Price—$3.75 per share. Proceeds—
To pay note payable.
Office—4112 Aurora St., Coral
Gables, Fla.
Underwriter—Atwill & Co., Inc., Miami
Beach, Fla.
v."!;...
' ■. - *'

June 18 (letter of

Golden Dawn

;

Uranium Corp., Buena Vista, Colo.

Dec. 27 (letter of notification) 3,000,000 shares of capital
•stock (par five cents). Price—10 cents per share. Pro¬
ceeds — For mining expenses. Underwriter — Bel-Air

Securities Co., Provo,

Utah.

Corp. (7/30-8/1)
:
class A stock (par 10
cents). Price—$5 per share.,. Proceeds—For expansion
and to repay outstanding obligations.
Office—Remsen,
W. Y. Underwriter—All States Securities Dealers, Inc.,
Gold Seal Dairy Products

June

•New
/ t

filed

York.';.

200,000 shares of

;/•,

-■

•••

Elevator Warehouse Co.

Grain

May 28 filed $6,302,950 of 5% convertible subordinated
together with 126,059 shares of comjrnon stock (par 10 cents) being offered for subscription
in units of $50 of debentures and one common share by
preferred and common stockholders of National Alfalfa
Dehydrating & Milling Co. of record June 20, 1956 on
the basis of one such unit for each preferred of National
•debentures due 1976,

«nd

one

such

unit for each 10 National common shares;

rights to expire on July 16. Price—$50 per unit. In
exercising the subscription rights, credit will be given
toward the subscription price on the basis of $45 for
each share of preferred and $15 for each share of com¬
mon stock of National tendered as a part of the sub-

jscription. Proceeds—For capital expenditures and work¬
ing capital. Underwriter—None.
/ •
Gray Tool Co., Houston, Texas
May 3 (letter of notification) 3,270 shares of class B stock
<oo par), of which 1,000 shares are to be offered pro
rata to the holders of class A stock and 2,270 shares are
^offered to employees of the company. Price — $50 per
^hare. Proceeds—For working capital. Office—6102 Harrisburg Blvd., Houston, Tex. Underwriter—None.
Growers Container Corp., Salinas, Calif.

May 28 filed 600,000 shares of common stock (par $1)
lo be offered primarily to individuals anrdftrmawhA
are engaged
in or-closely allied to the growing and
■shipping industry. Price—$3 per share. Proceeds—For
working capital, capital expenditures and other corpo¬
rate purposes. Underwriter—None.
*

Guaranty Income Life Insurance Co.
(letter of notification) 24,000 shares of capital
ntock (par $5) to be offered first to stockholders; then
^policyholders and the public. Price—$10 per share. Pro¬
Dec. 30

ceeds—For

working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.

Gunkelman (R. F.) & Sons, Fargo, N. D.
May 25 (letter of notification) 1,800 shares of 5%

cumu¬

lative preferred stock (par $100). Price—$98 per share.
Proceeds — For expenses incident to commercial
business.

grain
Underwriter—W. R. Olson Co., Fargo, N. D.

ft Handy & Harman

June 25

(letter of notification) 7,400 shares of common
(par $1). Price—$6.75 per share. Proceeds—For
general corporate purposes. Office—82 Fulton St., New
"York 38, N. Y. Underwriter—None.
stock

Mining Co., Pittsburgh, Pa.
ITeb. 20 (letter of notification)
1,000,000 shares of

share). Proceeds—
development of oil and gas properties. Office—
219 E. Fremont
Ave., Las Vegas, Nev. UnderwriterNational Securities Co., Las
Vegas, Nev.
Hiskey Uranium Corp.
>,•
per

May 31 filed 500;000 shares of common stock
(par 3d
cents). Price—$1 per share. Proceeds—For
drilling ex-

Cjahf, Underwriter—Arthur B. Hogan,

Inc., Hollywood,

Hometrust Corp.,
Inc., Montgomery, Ala.
5
125,000 shares of common stock (par

5
of

$1).

■£r~T..per share. Proceeds — To expand operations
subsidiary and increase investment therein. Under¬

writer—None.

Idaho-Alta Metals
Corp.

(letter of notification) 120,000 shares of
mon stock
(par 10 cents). Price—$1.50 per share.
ceeds—For exploration and
development

expenses.

•Jerwriter
St

—

Fenner Corp. (formerly

Co.), New York.

•lock

Pro¬

Un-

Fermer-Streitman

Ideal-Aerosmith, Inc., Hawthorne, Calif.

Dec.

com¬

(letter of notification) 150,000 shares of
capital
(par $1). Price—-$2 per share. Proceeds —For

Under¬
<

Co., Sturgis, Mich.

June

class A

common

stock

(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To
pay loans from banks
and factors; and for
working capital and other corporate
Business—Prefabricated homes, house trailers

purposes.

and lumber. Underwriter—Ira

Haupt & Co., New York/

Kropp Forge Co.
;V-V
J• v4'! /
June 4 (letter of
notification) 18,804 shares of common
being.first offered to stockhpldersv. stock. ,(par 33^ cents). Price—At market "(estimated.
a£
of record June 30 on a 1%-for-l basis (with an over¬
$3.50 per share). Proceeds — To selling - stockholder.
subscription privilege); rights to expire in 20 days. Price
Underwriter—Sincere & Co., Chicago, 111.
/ ;
—$1.70 per share. Proceeds—For construction of an ab¬
■/;/ Lawyers Mortgage & Title Co*.
sorption type gasoline plant. Office—11950 San VinMay 11 (letter of notification) 133,000 shares of com¬
cente Blvd., Suite 207, Los Angeles 49, Calif.
Under¬
mon stock
(par 65 cents). Price—$1.50 per share. Pro- writer—Bennett & Co., Hollywood 28, Calif.
ceeds—For working capital. Office—115
Broadway, New
York 6, N. Y.
Inland Steel Co., Chicago, III. (7/19)
Underwriter—None.
stock

■

June 29 filed

$50,000,000 of first mortgage bonds, series
J, due July 1, 1981. Price—To be supplied by amend¬
Proceeds—For expansion program.
Underwriter

—Kuhn, Loeb & Co., New York.

"•//O

Leeds & Northrup Co., Philadelphia, Pa. (7/24)'"
28 filed 115,000 shares of common stock
(par 5Q>"•
cents), of which 100,000 shares are to be offered to the
public and 15,000 shares to employees. Price—To be sup/
plied by amendment. Proceeds—To reduce short
term/

-r

June

A;:'V:.'-

•

Insulated Circuits, Inc., Belleville, N. J.
Nov. 10 filed 100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price—
At par

($5

bank

loans and for general corporate
purposes.
writer — Smith, Barney &

Stockholders

per share). Proceeds—For general corporate
Underwriter—Alexander Watt & Co., Inc., has

purposes.

withdrawn

underwriter;

Lester

capital
to be offered for subscription by stock¬
holders of record June 8, 1956 on the basis of one new
share for each share held. Price—$16 per share.
Pro¬
ceeds—For capital stock and surplus.
Office—750 Main
St., Hartford, Conn. Underwriter—Putnam & Co., Hart¬

portion,
ployees.

filed

Corp.

/•

shares of

80,561

stock

(no par)

Statement effective June

International

Industries

purposes.

28.

Office

—

(par

cent), of which
to be offered for public sale,

1,000,000 certificates are
180,000 shares and certificates therefor are subject to
options and 250,000 shares and certificates therefor are
to be offered for sale outside of the. United States. Price
—To

operations and expenses of the company, and
acquisition,
exploration and development of additional acreage. Un¬

Co., Inc., New York.

Jersey Central Power & Light Co. (7/31)
July 2 filed $10,000,000 first mortgage bonds due
Proceeds

1986.

bank loans and for construction
program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.,
Inc.; Lehman Brothers; White, Weld & Co.; Kidder,
Peabody & Co.; Union Securities Corp., Salomon Bros.
—

repay

Hutzler and Merrill Lynch,
Pierce, Fenner & Beane
(jointly); Blair & Co. Incorporated. Bids—Expected to

received

to 11 a.m. (EDT) on July 31 at
offices of General Public Utilities
Corp., 67 Broad
New York, N. Y.
'
up

the

St.,

Jurassic Minerals, Inc., Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per

share.

activities.

Colo.

Proceeds—For
Office

—

Underwriter

New York.-

incident to
Montezuma St.,

mining
Cortez,
Bay Securities Corp., New York,

326

—

expenses

West

sold

(par
for

10
ac¬

selling stock¬
Price—$1 per share, by amendment. Proceeds'
exploration and development and other general
corporate purposes.
Underwriter—George A. Searight,
New York City.
.

Lone Star

June

Fund, Dallas, Texas

filed

125,000 shares of Balanced Income Series^
125,000 shares of Insurance Growth Series; and 125,000

Proceeds

Industrial

For

—

Growth

Series.

Price—At

investment. Underwriter

Management Co., Dallas, Texas.

Inc.

one

are

holders.

stock

common

—For

required by law. Underwriter—None.

common

Developments, Inc., Cleveland, Ohio

count of the company and 90,000 shares for

common stock (par $1),
1,200,000 shares are to be offered publicily
and 600,000 shares on exercise of options.
Price—$2 per
share to public.
Proceeds—To be added to general op¬
erating funds to enable the company to maintain proper

(par $1),

and

21 filed 600,000 shares of
cents), of which 600,000 shares

369-375 DeKalb Ave., Brooklyn ft,

Israel-Mediterranean Petroleum, Inc. (Panama)May 29 filed American voting trust certificates for 1,430,-

Lithium

which

capital

June

Office—1214 Ainsley Bldg.,, Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y.

Underwriter—George

- Price—$10
per share/ Proceeds
surplus. Office—American National*
Bank Bldg.,
Gadsden, Ala. Underwriter—None. / /
' 4>

—For

July 9 filed 1,800,000 shares of

000

stock

common

Corp. '

Isthmus Steamship & Salvage Co.,

1/""7/.
(letter of notification) 30,000 shares of class A

June 29

Underwriter—Kamen & Co.. New York.

reserves

Ariz.

Offering—Postponed.

it Life Insurance Co. of Alabama

it Investment Life & Trust Co., Mullins, S. C.
of

Office—Tucson.

F/Breen, New York.

Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents). Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of
equip¬

ment, etc.

common stock -(par 10

Price—To be supplied by amendment. Proceeds
properties,
improvements, equipment ;and for general corporate,

Metals, Inc.
Jan. 27 (letter of notification) 1,000,000 shares of com¬
mon stocks (par 10 cents).
Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.
Plastic

10$,000 shares of

—For exploration and evaluation of leasehold

Basic

International

Lewisohn Copper Corp.

cents).

being offered in exchange for common stock of Globe'
Metallurgical Corp. at the rate of 0.4666% of one share/
tor each Globe share. Offer to expire on July 20, 1956,
unless extended.

March 30 filed

common

June

to 7,500 shares are to be offered to em¬
Price—$8 per share. Proceeds — For general
corporate purposes.
Offiee—2711 Church Ave., Cleve¬
land, Ohio. Underwriter—None.
'
/

Interlake Iron

Engineering Co., Cleveland, Ohio

Feb. 24 (letter of
notification) 37,500 shares of common
stock (par $l) to be offered for subscription
by common
stockholders of record March 1, 1956 oh the. basis of one
new share for each 4*4 shares held. Of the
unsubscribed

(par $10)

ford, Conn.

Under¬

Co., New York." Meeting—.4
July 23 will vote on the proposed two--,-

for-one split of the present $1 par shares.

to be named.

new one

Insurance City Life Co., Hartford, Conn.
June 28 (letter of notification) 15,805 shares of
stock

(par 50 cents)

ment.

March 7

Kirsch

•
Inglewood Gasoline Co.
May 18 (letter of notification) 175,725.9 shares of capital

derwriter—H. Kook &

P. O. Box 308, Winterhaven,

construction.

new

Corp., New York.

Knox Corp., Thomson, Ga.
20 filed 150,000 shares of

Development Corp.
*■
March 7 (letter of notification) 1,000,000 shares of com¬
mon stock. Price—Five cents per share.
Proceeds—For
development and working capital. Office—Moab, Utah.
Underwriter—I. J. Schenin Co., New York.

writer—Ackerson-Hackett Investment Co., Reno, Nev.
Holden Mining
Co., Winterhaven, Calif.

—

•

Industrial Minerals

be the market price on the American Stock Ex¬
change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,

ing expenses. Address

for

—

!>eiises, purchase of properties and
working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake
City, Utah. Under¬

April 13 (letter of notification)
250,000 shares of capital
etock. Price—At par
($1 per share). Proceeds—For min¬

and

writer—The First Boston

Business—Drapery hardware. Under
writers
Cruttenden & Co., Chicago, 111.; and
Smith,
Hague, Noble & Co., Detroit, Mich. Offering—Expected
today (July 12).

ment.

For the

•

ing stockholders.

Corp.; White, Weld & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Harriman, Ripley &
Co. Inc. and Glore, Forgan & Co. (jointly); Union Se¬
curities Corp.
Bids — Expected to be received up to
10 a.m. (CDT) on July 24 at Room 1567, No. 231 So.
La Salle St., Chicago 4, 111.

burgh, Pa. Underwriter—Graham

Place, Pitts¬
Co., Pittsburgh, Pa.

(7/18)

Boston

May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents); Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬

loans

bank

repay

(7/24)

stock (par one cent). Price—Five cents
per share.
Proceeds—To purchase machinery and equipment and
Cor working capital. .Office —377 McKee

Hidden Dome Exploration
Co., Inc. *
May 15 (letter of notification) 3,000,000 shares of capital
fitock.
Price—At par (10 cents

Power & Light Co.

June 21 filed 120,000 shares of common stock
(par $5).
Price—To be supplied by amendment. Proceeds—To sell¬

com¬

mon

Thursday, July 12, 1956

first mortgage bonds due 1986..
Proceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

insurance

Hard Rock

June 25 filed 270,000 shares of common stock
(par $8.75). '
Price—To be supplied by amendment.
Proceeds—To

June 27 filed $20,000,000

•

Kansas

equipment, machinery, inventory, etc.. Office—12909 So.
r

—

market.

All

States

."//:

Long Island Lighting Co.
// i
April 5 filed 120,000 shares of cumulative preferred stock,
(par $100). Price—To be supplied by amend¬
,

series G
ment.

Blyth

Proceeds—To repay bank loans.

Underwriters—

Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions.
.

Los Angeles Airways, Inc., Los Angeles, Calif.
April 23 (letter of notification) 645 shares of common

stock

(par $10). Price — $54 per share. Proceeds — To
Clarence M. Belinn, the sellihg stockholder. Office—5901
West Imperial Highway, Los Angeles 49, Calif. Under¬
writer—Dean Witter & Co., Los Angeles, Calif.
Lost Canyon
Oct.

Uranium & Oil Co.
(letter of notification) 3,000,000 shares of non¬
(par one cent). Price—10 cent*

assessable capital stock

share. Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of Utah, Salt
per

Lake City, Utah.

Lumberman's Investment & Mortgage Co.
50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
eeneral
corporate purposes. - Office — Denver, Colo.
Underwriter—None.

May 2 filed

.Mammoth Milling & Uranium Co., Inc.
May 11 (letter of notification) 3,000,000 shares of capital
stock.

Price—At par (10 cents per share).
Proceeds—
mining expenses. Office—205 Carlson Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co., Inc.
of California, Beverly
Hills, Calif.

For

Marquardt Aircraft Co., Van Nuys, Calif. (7/18)'
25 filed 42,000 shares of capital stock
(par $1) to

June
be

offered

about
about

for

July 18

subscription

stockholders

record

rata basis; rights to expire on or
Aug. 7. Price—To be supplied by amendment. Pro¬

ceeds—From

a pro

sale

stock,

together

with

funds

from

Volume

184

Number ,5550

The Commercial and Financial Chronicle

(205)
• National Research
private placement of $2,000,000 of first mortgage 5Y4 %
Corp. (7/.19) wbonds, for capital improvement, equipment and general" June 21 filed $6,000,000 of convertible subordirfated de¬
corporate purposes. Underwriter—None. Unsubscribed' bentures due July 1, 1976. Price — 100% and
.accrued
'shares will be bought by Olin Mathiesen Chemical Corp.,interest.
Proceeds
$3,000,000 in payments of capital
and Laurence S. Rockefeller, the two principal stock¬
.stock of NRC Metals Corp., a wholly-owned
subsidiary;
holders.
;
/.
*
for advances to said subsidiary and for
general corporate
• Mica & Minerals
purposes.
Business—Scientific research and the com¬
Corp. of America (7/30) </■
mercial development of the results obtained.
June 13 filed 570,000 shares of common stock (par 10
Officecents)* Price—$1 per share. Proceeds—rTo repayment of
Cambridge, Mass. Underwriter—Paine, Webber, Jackson &
loans, to exercise option to purchase property now under
Curtis, Boston, Mass., and New York, N. Y.
lease, for construction of a plant, and for further explo¬
/£ National Starch Products, Inc.
ration, working capital and other general corporate pur¬
,June 19 (letter of notification) an undetermined num¬
poses.
Del. Underwriter

capital and expansion program. Office—1714 No, Saliva
St., Syracuse, N. Y. Underwriter—George D. B^ Bon4
•bright & Co.„Rochester,.*/• /• *
.;ZrZ /<//•

—

Peter'

;

ber

Michigan Wisconsin Pipe Line Co. (8/1)
July 2 filed $25,000,000 of first mortgage pipe line bonds
.

1976.

and

for

Proceeds—To pay off short

construction

term bank

Underwriter

program.

determined by competitive bidding.
Probable bidders: ;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harriman
Ripley & Co. Inc.; Blyth & Co., Inc. Bids—Ex¬
pected to be received up to 11 a.m. (EDT) on Aug. 1 at
165 Broadway, New York 6, N. Y.
•* •;
f

•

Uranium

(par $1)

class A and three shares of class B stock.

construction

Prudential

•

Proceeds—For3

•

•stock

/—To

North American Coal Corp.
(7/19)
' I
New York (8/1)
'■*'*/<// ■-/
June 25 filed 250,000 shares of common stock
(par $1).
2,500,000 shares of common stock (par
Price—To be supplied by amendment.
Proceeds—For
one cent).
Price—$1.50 per share. Proceeds—To acquire
•/ mining machinery and working capital.
Office—Cleve¬
for $2,400,000 the Chavin lead-zinc-copper-silver mine
land, Ohio. Underwriters—Dominick & Dominick, New
located in South Central Peru, and for general corporate
York; and Ball, Burge & Kraus, Cleveland, Ohio.
purposes.
Underwriter — Gearhart & Otis, Inc., New
York;; /-V/:.
4 North American Finance Co., Phoenix, Ariz.
"•■;;/:// ;/'• :
July 9 filed 500,000 shares of class B non-voting common
Mission Appliance Corp. of Mississippi
.stock (par $1). Price—$3 per share. Proceeds—To ex¬
April 23 (letter of notification) 7,475 shares of preferred
pand business operations. Underwriter—None, sales are
stock (par $20) and 29,900 shares of common stock (par
$5) to be offered in units of one preferred and four com¬ ] to be made by Eugene M. Rosenson, President, of Pheonix, and Marcus T/Baumann, Vice-President and Treas¬
mon shares.
Price—$40 per unit. Proceeds —; For pur¬
urer, of Tucson, Ariz.
•
chase of machinery and equipment. Office—New
Albany,
Miss.;. Underwriter—Lewis*1 & Co., Jackson, Miss.
Northern Indiana Public Service Co.'*(7/25) • " *

J Minerals, Inc.,

June

July

this insurance

Mohawk Silica

March

Underwriter—Arizona

company.

Benefit Insurance Co.,

Phoenix, Ariz.

{

obligations, to buy equipment and inventory,

Office

41-18 38th St., Long Island City, N. Y„
*
/. J/ 7.

—

will bring in*an aggregate amount of $42,509.
Proceeds—For mining expenses. Office—Bryant Bldg^,

/market
,

•

Underwriter—None.

Mormon Trail Mining

•

Corp.; Salt Lake City, Utah

Underwriter—Frontier

•>;■//'

supplied

loans

and

by
for

•

Oak Mineral & Oil Corp., Farmington,

Co.

and

Western

Natural

Ga»

for

each

common

pay for exploration, acquisition and,,d^yelopihent of
mining and milling properties and for working capital.,
Underwriter-«-iWhite, Weld Jk £o*
Xpv\%. ..,
, .1,4

Rea

(J. B.)

Co., Inc., Santa Monica, Calif.

May 29 (letter of notification) 50,.000 shares of common,
(par $5) per share. Price—$6 per share. Proceeds
—For inventory and working capital. Office—1723 Cloverfield Blvd., Santa Monica, Calif. Underwriter—Shearstock

son.

Hammill &

Co., Beverly Hills, Calif.

Birmingham, Ala.
May 25 filed 2,985,000 shares of common stock, of which
2,485,000 shares are to be offered to public and 500,000
shares are to be reserved on exercise of options to beReinsurance

N. M.

/ granted to

Investment Corp.,

employees of company.

Price—To public, $2-

share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance company to be known as the "Reinsurance Company of theper

South"; the remainder will be used for other corporate
(Calif. )
/ purposes/ Underwriter—Luna/Matthews & Waites.
:
April 10 filed $25,000,000 of debentures due 1971. Price
Reno Hacienda, Inc., Inglewood, Calif,
;
—To be supplied by amendment." Proceeds—For reduc¬
Dec. 19 filed 4,000,000 shares of common stock. Prle*—
tion of short-term bank loans.
Underwriters—Blyth &
At par ($1 per share). Proceeds—To purchase real propCo., Inc., and Hornblower & Weeks. Offering—Indefi¬
;
erty, for construction of buildings and other facilities
nitely postponed. /
'
<
•
and for general corporate purposes. Underwriter—Wflr• Pacific Power &
Light Co.
•on & Bayley
Investment Co.
June 7 filed 341,550 shares of common stock (par $6.50)
Republic Cement Corp., Prescott, Ariz. (7/18)
being offered for subscription by common stockholders
April 20 filed 965,000 shares of capital stock. Price—$19
of record July 11, 1956 at the rate of one additional share
nor c^nre.
Proceeds—For construction of plant, working
for each 10 shares then held; rights to expire on Aug. 2.
capital and general corporate purposes. Underwriter—
1956.
Price—$27 per share.
Proceeds—For construc¬
Vickers Brothers, New York.
;
tion program. ..•Underwriters—Lehman
Brothers, Union
Rogosin Industries, Ltd. (New York)
Securities Corp., Bear, Stearns & Co. and Dean Witter
June 4 filed 75,000 shares of common stock (par $100)
& Co. (jointly). •
and $7,500,000 of 20-year 3% debentures due May 1,1976*
Pan-Israel Oil Co., Inc. (Panama)
This
includes
5,000 common shares and $500,000 of
May 29 filed American voting trust certificates for 1,debentures to be received by Beaunit Mills, Inc. in pay¬
430,000 shares of common stock (par one cent), of which
ment for rights to manufacture viscose
rayon yarns,
1,000,000 certificates are to be offered for public sale,
pi-ice—At par or principal amount. Proceeds—For cap¬
180,000 shares and certificates therefor are subject to
ital expenditures, working capital and other corporate
options and 25,000 shares and certificates therefor are to
purposes.
Underwriter—None.

•

June

/stock

(letter of

notification)

1,000 shares of

(par $10). Price—At market

share).

Proceeds—To

writer-r-J. M.t Dain &

common

(estimated at $18.50
stockholder. Under-

selling
Co., Inc., Minneapolis, Minn.

...

National By-Products, Inc.
19 (letter of notification)
2,000 shares of common
(par $lK.Pxicik-T$5-per share. Proceeds—To pay
Federal estate taxes/ Qfffee—800 Bankers Trust
Bldg.,

June

■

stock

I>es Moines, Iowa.

Underwriter—T. C. Henderson & Co.,

Inc., Des Moines, Iowa.,:
National

'/,..

•

Consolidated

Mining Corp.
May 9 (letter of notification) 87,000 shares of
stock

(par one cent).
For mining expenses.

Price—$3
Address

per

share.

Lithium

—

common

Proceeds—

Salida, Colo.
writer—Pummill Enterprises, Houston, Tex.
National

Under¬

be offered for sale outside of the United States.

Corp., Denver, Colo.

Dec. 27 (letter of notification) 300,000 shares of common
ttock (par one cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club
Bldg.,

Denver, Colo.
same

Underwriter

—

Investment

Service

Exchange.
Proceeds—For exploration, drilling and development of

oil and

gas acreage in Israel.
Co., Inc., New York.l

Co.,

city.

Pinellas

National
March 5

Feb.

Metallizing Corp.
(letter of notification) 24,000 shares of Class A

1145-19th

St., N. W., Washington, D. C.

•

stock

(par $1).

stock

(par

10 cents).

Price—$2

per

share.

(par $2)
(par $2).
—

filed

50,000

working capital and general corporate purposes.
Office—Northport, L. I., N. Y. Underwriter—Lepow Se¬
curities Corp., New York.

Insurance Co.

class

common

stock

and

50,000 shares of class B common- stock
Price—To be supplied by amendment. Pro¬
To selling stockholders.
Office — Little Rock,

Ark.
Underwriter—Equitable Securities Corp.. Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
postponed. ...........
..
|
'

Porter-Cable Machine Co.
June 14

(letter of notification) 15,000 shares of

common

(par $10) to be offered for subscription by stockholders of record June 20 at rate of one new share for
each

holders; $20

per

held.

Price—$18.75

share to stock¬
share to public. Proceeds—For working
per

stock

(par $10).

Price—$26.75 per share.

Proceeds—For

land; siding; building; inventory, et al. Office—227 Pen¬
dleton St., Greenville, S. C.
Underwriters—Alester G.

Co,, Inc., Edgar M. Norris, H. T. Mills and.,
Manning, all of Greenville, S. C.; and Klugh
Co., Inc. of Anderson, S. C.

•

San Jacinto

Furman

Vivian M.

June
to be

filed

offered

Petroleum Corp.

(7/13)

300,910 shares of common stock (par $1)
for subscription by common stockholders

the basis of one new share for
rights to expire on July 23. Price
—To be supplied by amendment. Proceeds—To discharge
certain obligations and for general corporate purposes.
Office—Houston, Tex. Underwriter—White, Weld & Co.,
record

July

each four shares held;

New

York.

El Paso, Texas
notification) 30,700 shares of common
be offered for subscription by stockholders or*
0.6158 new share for each common share held.

Schwartz Carbonic Co.,

stock

4 Ross Builders Supplies, Inc.
June 29 (letter of notification) 10,000 shares of common

common

Proceeds—

For

National Old Line

ceeds

Industries, Inc., St. Petersburg, Fla.

(letter of notification)

ic Popular Plastic Products Corp. (7/23)
July 9 (letter of notification) 150,000 shares of

Underwriter—

None.

Nov.

Underwriter—H. Kook &

8,000 shares of clasa A
Price—At the market (maxi¬
mum $6).
Proceeds—For working capital. Office—34tb
St. & 22nd Ave., North, St. Petersburg, Fla. Underwriter
—Eisele & King, Libaire, Stout & Co., New York.

(par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class

1, 1956 on a l-for-4 basis.
Price—$2 per share. Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—

common

stock

B stockholders of record Feb.

Price—

To be the market price on the American Stock

amendment.

Gas

July 16

Natural Gas Co.

ceeds—For exploration and development and other gen¬
eral corporate purposes. Underwriter—Philip Gordon h

;

Natural

record

portion thereof of Western
stock held; (with an oversub¬
scription privilege); rights will expire on Aug. 1. Price
—To be supplied by amendment.
Proceeds—$1,250,009
to be used to pa.y outstanding 4% short-term notes and
tfie then outstanding Vk% and 3%% subordinatefyjnote^
of El Paso and Western.
The remainder will be/used,

stock

construction

Nov. 8 (letter of notification) 2,000,000 shares of common
stock (par five cents). - Price—15 cents per share.' Pre-

Paso

Pacific Finance Corp.

InvestmentyJnc., Las Vegas, Nev.
<

bank

Co., New York.

Feb; 9 (letter of notification) 3,000,000 shares of
capital
stock (par one cent).
Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223
Phillips Petrol¬

Nash Finch Co.

repay

the basis of one share of Rare
Metals stock for each five shares or portion thereof of
El Paso common stock and one share of Rare Metals?

Underwriters—Central Republic Co. Inc., Chi111.; and Blyth & Co., Inc. and Merrill Lynch,
Pierce, Fenner & Beane, both of New York.

;

Bldg., Salt Lake City, Utah.

Price—To

8.
To

offered for

Co. of

•

/ cago,

stock

—

nati, Ohio.

—

filed

•:

/ program.

of 8%
(par $50) and
3,000 shares of common stock (no par) to be offered in
units of one share of preferred and one share of common.
Price
$60 per. unit.V Proceeds — For mining expenses
and processing silica. Office—2508 Auburn
Ave., Cincin¬

preferred

Aug.

Corp. of America (7/17)
1,400,000 shares of capital stock (par $1>
subscription by common stockholders#

Metals

per share) to be offered for subscription by common
stockholders of record July ,13 on the basis of one pre¬
share for each 10 common shares held; rights to

Proceeds

Rare

June

filed 370,894 shares of cumulatiye^r^ference
(convertible through Dec. 1, 1966—par value $40

expire

Underwriter^—Shaiman & Co., Denver,

Montrose, Colo.
coi°.

ferred

Mutual'

convertible

;

Co., Cincinnati, Ohio
notification) 3,000 shares

(letter

.cumulative

(par 10 cents).

171,000 shares -of capita!
Price—$1.75 per share. Proceeds#

Radium Hill Uranium, Inc., Montrose, Colo.
•
June 14- (letter of notification) an undetermined number
-;Of shares of common stock which when sold < at the

stock

May 24 (letter of notification) $300,000 of trust fund cer¬
Price—At par ($2 per unit). Proceeds — To
provide capital, and surplus 4unds for the activation of

Uranium Corp.

•

tificates.

/per

•

filed

Modern Pioneers' Life Insurance Co.

-> »'••,«* JV»'

Underwriter—Vickers Brothers, New York.

■

Federal

(7/19) ...
{letter of notification)

pay

/Sign.

—

eum

*• •'*

/and for working capital. Business — Manufacture audi
sale of color-illuminated interchangeable letter Radalite/

Radalite Corp.

June 8

■

March 21 (letter of notification) 6,000,000 shares of com¬
mon stock (par two cents).
Price—Five cents per share.

Corp.
^
-May 31 (letter of notification). 100,000 shares of common
Niagara Uranium Corp., Salt Lake City, Utah
stock (par one cent). Price-—50 cents per share. Proceeds
April 3 (letter of notification) 2,400,000 shares of comf-For mining; expenses. Officer—728 Symes Bldg., Den¬
rmon stock (par 3% cents),
Price—10 cents per share.;
ver 2/ Colo. Underwriter—General
Investing Corp,; New
/Proceeds — For mining expenses. Office — 345 South
York, N. Y. > >
• •'•.••
.5
State St., Salt Lake City, Utah.
? »*.•*.
/..
'• ■
v-:i' •'
/•
•//.. ./• ■/.
Underwriter—Birkeni
Midland General Hospital, Inc., Bronx, N. Y. ""
mayer & Co.,_Denver, Colo.
/,/•".
v../. /;
Jan. 12 filed 24,120 shares of common stock
(no par)
Nicholson (W. H.) & Co.,
Wilkes-Barre, Pa.
/
and 30,000 shares of $6 dividend preferred stock (no
Jan. 16 filed 20,000 shares of common stock
(par $5).
par). L The company does not intend presently to sell
Price—$25 per share. Proceeds — For working capital.
more stock than is required to raise, at
most, $2,700,000.
Underwriter—None. A. E. Nicholson Jr. of
'Price
Kingston, Pa.
$100 per share. Proceeds — For construction,
is President. / ~
"
V
/-'•••/•
working capital, reserve, etc. Underwriter—None.
;
'

'•

—

be offered

plant and working capital. -Office—803/
Carey Drive,. Norman, Okla. /Underwriter—None.
"/,/;,

V/ Mid-Continent

stock

common

■„

—

loans
To

—

•

to salaried employees of the
company or its Canadian
Proceeds—For mining expenses.
subsidiary, National Adhesives (Canada) Ltd. Proceeds
Underwriter—Skyline*
—To increase working capital.
Office
270 Madison/; Securities, Inc., Denver 2, Colo.
Ave., New York 16, N./Y. Underwriter—None.
R. and P. Minerals, Inc., Reno, Nev.
;
Feb. 14 (letter of notification) 500,000 shares of common*
Naturizer Co.
//
stock.
Price—At par (10 cents per share),. Proceed*—
July 2 (letter of notification) 9,750 shares of class A *
For mining expenses.
Office—573 Mill St., Reno, Itafc.
common stock (par $1) and 29,250 shares, of class B com¬
Underwriter—Utility Investments, Inc., Beno, Nev.
mon stock
(par $1) to be offered in units of one share of

•

due

★ Prestole Corp.
'• ' .'/• ;/,• :J.
July 3 (letter of notification) $300,000 of 6% convertible
sinking fund debentures due July 1, 1971 to be issue*!
in denominations of $20 or any multiple thereof.
Pro-*
ceeds—To pay short term note and to buy equipment*
Office
1345 Miami St., Toledo, Ohio.
Underwriter—*
Baker, Simonds & Co., Detroit, Mich.
,'/;

Office—Wilmington,

•

Morgan & Co., New York.

;4!

Feb. 27 (letter of
stock

basis of

Continued

page

The Commercial and Financial Chronicle

(206)

Continued from page

•

Price—$7.50 per share. Proceeds—For expenses incident
to manufacturing and sales of carbon dioxide. Office—
1600 East Eleventh St., El Paso, Tex. Underwriter—None.

Security Casualty Insurance Co,
May 10 (letter of notification) 30,000 shares of common
stock (par 30 cents) and 90,000 shares of participating
preferred stock (par 50 cents) to be offered in units of
one share of common and three shares of preferred stock.

Proceeds—For working capital, etc.
Denver, Colo. Underwriter—
Intermountain Securities. Inc., Denver, Colo.
Price—$4 per unit.

Office—257 Josephine St.,

Shangrila Uranium Corp#
Dec. 30 (letter of notification) 300,000 shares of com.
mon stock.
Price—At par ($1 per share). Proceeds—
For mining expenses.

vestment Co., Tulsa,

Underwriter—Western States In¬

Okla..

Skiatron Electronics &

stock (par 10

Price — At the market. Proceeds —
stockholders. Underwriter—None.

cents).

To selling

Southwestern Oklahoma Oil Co., Inc.
Feb. 27 (letter of notification) 15,001 shares of common
stock (Par 10 cents) to be offered for subscription by

Price—$10 per share. Proceeds—For expenses incident to development of oil and gas properties.
Office—801 Washington Bldg., Washington, D. C. Under¬

stockholders.

■

■'1

Southwestern Resources, Inc., Santa Fe, N. M.
June 8 filed 1,000,000 shares of common stock (par

cents). Price^-$5 per share. Proceeds—To exercise op¬
tions, purchase additional properties and for general
corporate purposes. Underwriter—Southwestern Secu¬
rities Co., Dallas,:Texas., ■/
■
■;
e

Sperry Rand Corp.
June 14 filed 2,570,846 shares of common stock (par
50 cents) being offered for subscription by common
stockholders of record July 9, 1956, en the basis of
one new share for each 10 shares held; rights to expire *
on July 25, 1956. Price -— $20.50 per share. Proceeds —
To reduce bank loans and for capital expenditures. Un¬
derwriters—Lehman Brothers and Merrill Lynch, Pierce,
Fenner & Beane, both of New York.
Statesman Insurance Co.,

Indianapolis, Ind.

July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and employees of Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at the State Automobile Insurance Association."

Price—Proposed maximum is" $7.50 per shaire. Proceeds
—To obtain a certificate of authority from the Insurance
Commissioner of the State of Indiana to begin business.
^

Underwriter^-None.

July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and series B preferred stock in the ratio of one Share
of new preferred stock for each four shares of series A
or series B preferred stock and one share of new pre¬
common

stock held.

Price—

At par ($10 per share). Proceeds—To repay a $1,400,000
note held by Equity General Corp., a subsidiary of

Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter^—None, but
Equity General Corp. has agreed to purchase at par,
plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3,23%) of Sterling com¬
mon stock, plus $1,800,000 of its Convertible debentures.
Stevens

—

Coltharp Investment

;

-White Sage Uranium Corp.
(letter of notification) 15,000,000 shares of capftal stock. Price—At par;(one cent per share). Proceeds
For mining expenses.
Office—$47 East 21st South St,
Salt Lake City, Utah*
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.

'Mt' '

Feb. 13

ic Synco Resins, Inc.
June 29 (letter of notification) 50,000 shares of common
(par one cent). Price—$2 per shares Proceeds—
For research and improvements and working capital.
Office—Henry St., Bethel, Conn. Underwriter—None.

stock

Target Uranium Corp.,

Spokane,

-Williamson Co., Cincinnati, Ohio :'r
Feb. 20 (letter of notification) 20,666 shares of class B
common stock (par $1) to be offered for subscription by

Wash.

March 1 (letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.

„

class B common stockholders

Proceeds—For mining expenses. Office — 422 Paulsen
Bldg., Spokane, Wash. Underwriters—Percy Dale Laiiphere and Kenneth Miller HOwser, both of Spokane,

Wash..

',:

■

-•

/v;,•'

' /

V-

be offered for

l-fcr-7 basi

on a

Price—

$6.84 per shard.

Proceeds^For working capital. Office
•^3500 Maison Road, Cincinnati, Ohio.
Underwriter—

None.

v:"'

■-

;

•

Wilmington Country Club, Inc., Wilmington, Del.
2 filed $1,500,000 Of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds
Ir-For construction of a golf house and other improve-

ic Texas Calgary Co., Abilene, Texas
June 29 (letter of notification) 300,000 shares of common
stock (par 25 cents)!.
Price—$1 per share. Proceeds—
For drilling for oil and gas expenses.
Underwriter—
Thomson Kernaghan & Co., Ltd., Toronto 1, Ont., Canada.

Unclerwriter—None.

Tipton County Utilities Co., Inc.
(letter of notification) $115,500 of 5%% first
mortgage bonds dated Jan. 1, 1956 and due 1958-1980,
inclusive. Price—100% and accrued interest. Proceeds
June 21

Wisconsin Wood Products,- Inc*

,;~y;.v

;

J.Mri0 25 filed 74,016 shares of common stock (par $5)
tblbe offered" initially for sale to the present stock-

construction program.
Office—Dyersburg, Tenn.
Underwriter—The First of Arizona Co;, Phoenix, Ariz.

—For

Jiptders. It is not expected that more than 42,5(0 shares
w}U be sold; immediately. Price—$10 per share. - Procejeijs^—For lease of plant and purchase of equipment.
Togor Publications, Inc., New York'
J
*
March 16 (letter of notification) 299,700 shares of com*
Office—Phillips, Wis. Underwriter—None.
'+>Sy~''h
mon stock (par 10 cents). Price—$1 per share;! Proceeds.
.'Oil' & ' Gad Co^flew.. Orleans, La« *?.•".' >
—For working capital and general corporate purposes.
^ Aug. 29 filed 400,000 shares of common Stock (par $1).'
Office—381 Fourth Ave., New York; N. Y;' Underwriter
: T price—$5 per
share,- Proceeds—TO retire outstanding
—Federal Investment Co., Washington, D. C.
V
bbRgationS. Underwriters—Woolfolk & Ehober and How• U-Kan Minerals, lnc„ Topeka, Kansas
v
brq;; J Weil, Labouisse, Fredrichs & Co., both of New
June 19 (letter of notification) 599,600 shares of common
Orleans, La* Offering—Tentatively deferred. Statement
stock (par 10 cents).
Price—50 cents per share. Pro¬
elective Feb. 28.
V.■'
^
ceeds—For mining expenses. Office—204 Central Bldg.,
Topeka, Kan. Underwriter—E. R. Bell Co., Kansas City, ,? •^yile &, Towne Manufacturing Co. '
;. JmietJ4
filed 271,167 shares of capital stock (par $10)
Mo. Offering—Expected this weekP*
bqing offered for subscription by stockholders of record
Union Chemical & Materials Corp.
;
Jpfe' 6 oh tfie basis of one new share for each seven
May 25 filed 200;000 shares of common stock (par $10).
shares held; rights to expire on July 23. Price—$24.50
Price—Tott be. supplied by amendment. < Proceeds—To
peri^hare, Proceeds—For expansion program. Underselling stockholders. Office—Chicago, 111. Underwriters
writer—Morgan Stanley & Co., New York.
—Allen & Co., Bache & Co. and Reynolds & Co., Inc.,
all of New York. Offering—Temporarily postponed.
v.
<
Sheet & Tube Co#;'
-

"§^^bbds

-■

+ Sterling Precision Corp., New York >;

ferred for each 10 shares of

Underwriter

are to

Proceeds—Together with proceeds from private sale Of
$1,500,000 4%%' first mortgage bonds and $900,000 Of
3-year unsecured 4^% notes to a group of banks, will
be used to retire outstanding series A and series B 5%
first mortgage bonds, and for expansion program. Under¬
writers—Hemphill, Noyes & Co., New York; Courts &
C&.t Atlanta, Ga.; and Equitable Securities Corp., Nash: ville,
Term.
Offering — Temporarily postponed. Not
'expected until sometime in September or October.
v

Office—Continental Bank Bldg., Salt

Inc., Salt Lake City, Utah.

Of the latter, 75,000

Sweet Corp. (Utah)
May 7 (letter of notification) 300,000 shares of common
stock. Pfice— At par ($1 per share)*
Proceeds — Fpr

mining expenses.
Lake City, Utah.

$5).

stock (par

Thursday, July 12, 1956

the company's account and 61,000 shares for a selling
stockholder.
Price —To be supplied by amendment.

Price—To

Television Corp,

March 16 filed 470,000 shares of common

writer—None.

Superior Oil Co., Los Angeles, Calif. (7/18)
$60,000,000 of debentures due July 1, .1981.
be supplied by amendment. Proceeds—$14,260,000 to purchase and retire the 2%% debentures now
outstanding, and $40,000,000 will be used to prepay out¬
standing bank loans; also for construction of new build¬
ing. Underwriter—Dillon, Read & Co. Inc., New York.
June 28 filed

,..

(J. P.)

& Co., Inc., New York (7/19)
June 28 filed $30,000,000 of debentures due July 1, 1981.
Price—To be supplied by amendment. Proceeds—To re¬
duce short-term loans, to retire $950,000 of 4%% first
mortgage bonds and $368,679 of 6% preferred stock of
subsidiaries. Underwriter—Goldman, Sachs & Co., New
York.

:!^oungstown

June 5 filed 22,977 shares of common stock(no par) being
Offered in exchange for common stock of Emsco Manlufbcturing Co. on the basis of one share of Youngstown
fpr each three shares of Emsco; offer will expire gn

)

Union Electric Co., St. Louis, Mo; (7/17)
18 filed $40,000,000 of first mortgage bonds

June

,■

due
Proceeds—To repay bank loans and for
Underwriter—To be determined
by competitive bidding. Probable bidders: Haisey, Stu- yt;A*#v8y Yo"?g?2WI^SW53 shares,,
art & Co. Inc.; Lehman Brothers and Bear, Stearns & -V^Wpsenting 84.94 A, of the 457,786 outstanding shares Of
Co. (jointly); Blyth & Co., Inc. and Union Securities
common stock;. Statement effective June 2a.
?
Corp. (jointly); The First Boston Corp.; White, Weld &
Co. and Shields & Co. (jointly). Bids—To be received
■*"
^
up to 11 a.m. (EDT) on July 17 at Room 1900, 60 Broad¬
way,. New York 4, N. Y.;
-*■''/ ;'
v'""

July 1,

1986.

construction program.

Union of Texas

Alr-Vue

Oil Co., Houston, Texas

For expenses incident to oil production.

Office

-—

Products Corp., Miami, Ffa.

&hare.' Proceeds

San

For expansion program.

—

Undef-

^bf0ter—Arthur M. Krensky & Co., Inc., Chicago; I1L

Houston, Tex* Underwriter—Mickle &

Co., Ifouston, Texas.

„

FeM 20 it was reported early registration is expected
>bf§50,000 shares of common stock* Price—Around $4.25

Jan. 19 (letter of notification) 240,000 shares of common
stock (par 10 cents). Price—$1.25 per share. Proceeds—

Jacinto Building,

^ American Louisiana Pipe Line Co.
Universal Fuel & Chemical Corp.
> JUiy -3 it was announced company plans issue and sale
May 17 (letter of notification) 300,000 shares of capital ^bf\$15§00,000 of cumulative preferred stock. Underwriter
,

:v.

Price—At par ($1 per share). Proceeds—For min->
be determined by competitive bidding. Probable
ing expenses. Office—825 Broadway, Farrell, Pa. Under- ^ bidders: White, Weld & Co.; The First Boston Corp. Ofwriter—Langley-Howard, Inc., Pittsburgh, Pa.
v fering^—Expected in fourth quarter of 1956.
.
v Universal Investors, Inc., Shreveport, La.
v
^ <American Petrofina Inc
V

stock.

Strategic Metals, Inc., Tungstonla, Nevada
(letter of notification) 1,200,000 shares of com¬
mon stock.'
Price—25 cents per share,
Proceeds—For
expenses incident to mining operations. Underwriter—
K. Reynolds & Co.. Salt Lake City, Utah.

Jan. 4

Suburban Land

Developers, Inc., Spokane, Wash.

share; and of common, $15 per shaife.
Proceeds—For improvements and working
capital. Of¬
fice—909

per

West

Sprague Ave., Spokane, Wash. Under¬
writer—W. T. Anderson & Co.,
Inc., Spokane, Wash.

★ Sugarloaf Mountain Corp.
(letter of notification) 8,000 shares of common
par ($10 per share).
Proceeds—For
development of a ski area. Address—Kingfield, Maine.
Underwriter—None.
Price—At

Sun Oil Co.,
Philadelphia, Pa.
April 18 filed 229,300 shares of common stock. Price"—At
the market. Proceeds—To
selling stockholders. Under¬

writer—None.
•

Supercrete, Ltd., St. Boniface, Manitoba, Canada

June 28 filed 245,000 shares of

cents).

•

f8' itd^yiU offer to stockholders of Panhandle and Petro-

lal?s' Underwriter

Price—Expected

common

at about

$5.50

stock

per

(par 25
share. Pro¬

ceeds—Approximately $675,000 for acquisition of stock of
Thomas Jackson &
Sons, Ltd. and repayment of advances
to Supercrete by John
Jackson; approximately $200,000
for expansion of production
facilities; $90,000 for pay¬

ment of term bank

loans; and approximately for working
capital. Business — Manufacturer of concrete
building
blocks, concrete pipe, pre-cast and prestressed concrete
building products, and other items. Underwriter—Straus,
Blosser & McDowell, Chicago, 111.

inc., bnreveport, i*a.
Utco

Frank Keith & Oo.,

fina of Belgium and to Canadian Petrofina the oppor^

^tixruty to subscribe to additional "A" stock of American

Uranium Corp.,

Denver, Colo.
Jan. 30 (letter of notification) 200,000 shares of common stock, which are covered by an option held by the >'
underwriter. Price—10 cents per share. ; Proceeds—For i
mining expenses. Office—310 First National Bank Bldg.,;
Denver, Colo. Underwriter — Amos C. Sudler & Co.

Finest
e»

■■

same

city.

Industries, Inc., Evanston, III.
^
Jan. 24 (letter of notification) 7,000 shares of common
stock (par one cent). Price—-$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co*,*
Inc.. Chicago, 111*
-

it'*'.

for the

Pecially

Artistic,

Noteworthy

•

i-'.K-

Washington Natural Gas Co.
:>
June 18 (letter of notification) 187,500 shares of com-y
mon stock (par 10 cents). Price—$1.25
per share. Pro-ceeds
For working capital.
Office — 217 Washingtonr,"
Ave., Clarksburg, W. Va. Underwriters—Barrett Her^V
rick & Co., Inc., New York, N. Y. and Ross, Borton &
Simon, Inc., Cleveland, Ohio.

Design
I

yiA

—

Quality Printing

'•u1

Vance

July 3
stock.

Feb. 2 (letter of notification) 920 shares of 6% cumula¬
tive non-voting preferred stock
($100 per share) and
2,160 shares of common stock (par $10). Price—Of pre¬

ferred, $100

Jun^27. filedmooo shares of.common stock,(no par),.f,t was anrioJnced that following proposed
!, ?
-r*eeeeds/v To organize a new ;i
iInergbi. with Panhandle Oil Corp., American Petrofina,
wholly-owned legal reserve life insurance company un-

and

ilnstration of

Challenging

and

yy.;

Knotty

printing problems.

Western

Feb. 13

Securities Corp. of New^ Mexico
(letter of notification) 50,000 shares of common C

Price—At par ($1 per share). Proceeds—To start
dealer or brokerage business* Office—921 Sims Bldg.,

we.
ress,A

stock.

Albuquerque, N. M.
•

Wheiand Co.,

^ .v

Underwriter—None.

Chattanooga, Tenn.

May 23 filed $2,000,000 of convertible subordinated de- >
bentures due June 1, 1976, and 136,000 shares of common'1'*

Thames st.

Established 1923

new york 6

71 clinton st.. newark. n.

leaders in Financial Printing Since 1923

Volume

Number

184

5550

The Commercial and financial
Chronicle

(207)
Petrofina.

Price—$11

share- Underwriters—White,
Noyes
:
r-u
' ->
"...

per

Commercial National Bank,
Shreveport, La.
a plan to issue and sell
31,000. additional shares of capital stock
(par $25) on the basis of one new share for each 4.8064

Weld & Co.; Blyth & Co., Inc.; and Hemphill,
Co.

June 26 stockholders
approved
to stockholders

£ Appalachian Electric Power Co.
May 6l

announced

shares held

plans to issue and
$24,000,000 of first mortgage bonds.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Secu¬
rities Corp. and Kuhn; Loeb &
Co.-(jointly); The First
Boston Corp.; Harriman Ripley &
Co., Inc.
sell

was

company

December

Blackstone Valley Gas & Electric Co.

of record

June 26, 1956. '• Price—$52
per
Proceeds—To increase capital and

share.

June

was

(8/28)
company plans to issue and

announced

sell

April 30 it was reported company plans to issue 25,000 /
shares cumulative preferred stock (par $100). Proceeds
—To reduce bank loans. Underwriter—To be determined

$30,000,000 of debentures

Hutzler

(jointly); Paine, Webber, Jackson & Curtis

and Stone & Webster Securities
Corp. (jointly);
Weld & Co. and Kidder,
Peabody & Co.

—Tentatively expected to be received

surplus.

Consolidated Natural Gas Co.

;

Securities Corp.; Kuhn, Loeb & Co. and Salomon Bros.
&

due

1981.

Underwriter—

determined

by competitive bidding.
Probable
bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
Co. and The First Boston
Corp (jointly); White, Weld
& Co. and Paine,
Webber, Jackson & Curtis (jointly)

Bids—Expected to be received

to 11

a.m.

(EDT)
Registration—Now planned for July 16.

by competitive bidding. Probable bidders: W. C. Lang- / Aug. 28.
ley & Co.; Stone & Webster Securities Corp.; Salomon
Consumers Power Co. (8/14)
Bros. & Hutzler; Kidder, Peabody &
Co.; Harriman Rip¬
June 19 company filed an
application with the Michigan
ley & Co. Inc. Bids—Expected to be received sometime
P. U. Commission for
in July.
authority to issue and sell $40,000,/
v
.'-//■ .....
000 of first mortgage bonds to
mature not earlier than
Braniff Airways, Inc.
»
June 1, 1986. Proceeds—For
reduction of bank loans and
April 11 company authorized an offering to stockholders^
for new construction. Underwriter
To be determined
of
1,305,545 additional shares of common stock (par
by competitive bidding. Probable bidders:
Halsey, Stuart
$2.50) on the basis of three new shares for each five
& Co. Inc.; Harriman
Ripley & Co. Inc. and The First
shares held (with an
oversubscription privilege). On
Boston Corp. (jointly);
Morgan Stanley & Co.; White,
May /4, me company announced the number of shares
Weld & Co. and Shields & Co.
(jointly). Bids—Scheduled
to be offered is

White,
(jointly). Bids
Sept. 12.

★ High Authority of the European Coal and Steel
Community, Luxembourg
July 9 this Authority announced that .an American bank¬
ing group consisting of Kuhn, Loeb & Co., The First
Boston Corp. and Lazard Freres & Co. has been
ap¬
pointed to study the ppssibility of a loan to be issued
the American

market.

The

time, amount and term3

will

depend on market conditions. Proceeds — To be
loaned to firms in the Community for expansion of coal

mines, coking plants,

plants and iron

power

ore

mines.

Hollander

July 2 it
lander

(A.)

& Son, Inc. (N. J.)
announced that stockholders

was

Son, Inc. (Del.) will be afforded

expected to be reduced and the offeringj
Proceeds—For general corporate pur-*:
Underwriter—F. Eberstadt & Co., New York. -

extended.

poses.

to be opened at 11: 30

tion—Expected

California

Eastern

Aviation, Inc.;
/
it was reported that early registration is ex¬
pected of $2,900,000 6% convertible debentures due 1968..
Underwriter—Cruttenden & Co., Chicago, 111. Offering—
Expected late in July.
//:
June

California Electric Power Co.

May
of

first

announced

was

mortgage

Other conditions

are

then favorable. Proceeds—For

which

company,

March 22 it

was

on March 18 stated in part: "To
of present proposed
capital expenditures,
some additional
financing may be neces¬

•

Light Co. -(9/11);

announced company

con¬

rowings will probably provide for the remainder of the
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities."
Financing
may be in form of 15-year debentures to common stock¬
holders. Underwriters—None.
pected in October.

Offering—Tentatively

ex¬

has just

plans to issue and 3;

sell $15,000,000 of first
mortgage bonds due 1986. Under- i
writer—To be determined
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co

Nov.

announced

was

Intends at a future date to
to

that

Dairies, Inc.
give its stockholders the right

purchase its Dolly Madison stock.
Allen & Co., New York.
77777

Underwriter-

Inc.;' Kuhn, Loeb &
7-/7
Allyn & Co. Inc. (jointly); W. C. Langley
: Du Mont
Broadcasting Corp.
Vl'.'v
First Boston
Corp.r(jointly); Equitable- Aug. 10 it was announced
that corporation, following is¬
Securities Corp.; Blyth & Co-.,
Inc.; Kidder, Peabody &
suance on Dec. 2 to stockholders of
Allen B. Du Mont
Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly).;.
Laboratories, Inc. of 944,422 shares of common stock as
Bids—Scheduled for Sept./11.*77. V..V
;
77 u a dividend, contemplates that additional shares will be
• Central
Illinois Light Co. - (8/16)
.offered to its stockholders....This
-■/,
;:r7
offering will be un¬
July 5 it .was announced company has applied to the
derwritten.
Kuhn, Loeb & Co. and Van Alstyne, Noel
Illinois Commerce Commission for
& Co. handled Du Mont Laboratories class A stock fi-;
authority to -issue
and sell 80,000 shares of cumulative
preferred stock (par.
aancing some years ago.Stockholders of Laboratories
$100). Proceeds—To repay bank loans and for new con-on Oct. 10 approved formation of
Broadcasting firm. «>
struction.
/Underwriter-—May be Union Securities Corp.,
Eastern Shopping Centers, Inc.
New York.
■ .7.7 '
7 "/
7- ■'-'7 V77'i.:7*;V- ■
7'
May 7 it was announced this company has been formed
Central
Co. and
&

Co.

A. C.

and The

Illinois Public Service Co.

'ir

May 16, M. S. Luthringer, President,- said the
required
program
obtained

this

finance

the

estimated

from

year.

company's
about

1956

new money L

construction

$5,000,000

and

the sale of securities in the
class of

will

second

half

The

the time,

that

portion of the 1957 re¬
quirements for
new
money may be obtained in the
second half of this year.
Underwriter—To be determined
by competitive bidding. Probable bidders:
(1) For bonds
some

Coastal

Feb. 29 it

with

Co.,
K
.

Transmission
was

announced

Corp.,
an

Houston,

Texas

application has been filed

the FPC for construction
1o cost $68,251,000.

565.7

mile

pipeline
Underwriters—May be Leh¬
Brothers and Allen & Co., both of New
York.

system
man

—

Columbia Gas System,

Feb.

it was

announced

$30,000,000 of debentures.

Inc.

(10/2)

company

issue and sell

may

Underwriter

—

be deter¬

mined by competitive
bidding. Probable bidders:
& Co. Inc.; Morgan

Stuart

Stanley & Co.

ed to be received

Commercial
March

12 it

Halsey,
Bids—Expect¬

York.

per

share.

Underwriter

—

Price

—

Around

Vickers Brothers, New

Fairchild

Camera & Instrument Corp.
11, John H. Clough, President, announced that
working capital financing will be required in the near
future. Underwriter—Glore, Forgan & Co., New York.

June

National

was

Bank

announced

(L.

Bank

tional banking facilities in Nassau and Suffolk Counties
in Long Island, N. Y.

General Acceptance Corp.
April 2 it was reported company

plans

issue

and

1966, $10,000,000
of capital debentures due in 1971 and about
$3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬
son
& Curtis and Union Securities Corp.
Registration
late

Mav.

General

Contract Corp., St. Louis, Mo.
April 18 it was announced that company plans $5,000,000
additional financing in near future. Proceeds—To go to
Securities Investment Co., a subsidiary.
G. H. Walker & Co., St. Louis, Mo.
General

Public

Utilities

Underwriter—

for

new

issue of

common

stock will be

offered

subscription by

1957.

Credit

Corp.

was

about

—

common stockholders before April,
Proceeds—To repay bank loans, etc., and for con¬

struction program.

it General Telephone Co. of California (9/12)
July 10 company announced plans to issue and sell about
$20,000,000 of first mortgage bonds, series F. Proceeds—
To discharge bank loans and for construction
program.
Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Equitable

Probable

& Oil
an

Hudson Pulp & Paper Corp.
25 it was reported company

some

public

financing.

may

Proceeds—For

in the Fall do
expansion.
Un¬

derwriter—Lee Higginson Corp., New York.
Illinois

Bell

June 29 it

Telephone Co.

(8/31)

announced the company plans to offer to

was

its stockholders

580,531 additional shares of capital stoc]k
share for each eight shares held as

rate of

Aug. 31; rights to expire

one

new

Sept. 28.

About 99.3% of

the

presently outstanding stock is owned by American
Telephone & Telegraph Co. Price — At par ($100 per
share). Proceeds—To repay advances from parent. Un¬
derwriter—None.

was

Corp.

announced that the company is arranging

borrow

$100,000,000 from institutional investors to
new major expansion program to involve
ap¬
proximately $113,000,000. Underwriter—The First Bos¬
ton Corp., New York.
'
v
Kansas City Power & Light Co.
r,
April 24 stockholders approved a proposal increasing
bonded indebtedness of the company by $20,000,000.. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly). Amount and
timing
finance its

—

has not yet been
half of 1957), '

determined

(probably not until first
;

Kimberly-Clark Corp., Neenah, Wis.
Nov. 22 it

announced that

was

the

company

plans fur¬

ther financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬

tion to sell additional

common

stock.

Proceeds—To be

used to pay for further expansion, estimated to cost an
additional $37,000,000. Underwriter—Blyth & Co., Inc.,

New

York.

Long Island Lighting Co.
April 17 it
sell

announced company plans to issue and

was

Fall

$25,000,000 first mortgage
competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.
$20,000,000
—•

^ Marsh Steel Co.
July 3 it was reported
sell

some

additional

be determined by

company

common

plans

issue

and

Proceeds—For

stock.

ex¬

pansion program. Underwriter—The First Trust Co. of
Lincoln, Neb.
Stock Increase—Stockholders will vote
on increasing authorized common stock from
100,000 to
200,000 shares.
Meadowbrook

June 25 it

National

Bank,

West Hempstead,

will

$5)

was

vote

holders
on a

104,500

announced that the stockholders

July

approving a proposal to offer to stock¬
additional shares of capital stock (par

l-for-13 basis.

Proceeds

—

For expansion.

Un¬

derwriter—Lee Higginson Corp., New York.

Metropolitan Edison Co. (11/13)
July 2 it was reported that company is considering the
sale of $10,000,000 first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &

Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
(jointly); The First Boston Corp. Bids—Expected

& Co.

Corp.

April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock.
It is also pos¬
sible that

Gas

announced

was

New York

$15,000,000 of debentures due in

—ExDected

FPC

June

sell

the

bonds. Underwriter

•.

Oct. 2.

reported company plans early
registra¬
$25,000,000 of junior subordinated deben¬
tures.
Underwriter
Kidder, Peabody & Co. and The
First Boston Corp., both of New
York.
tion of

balance

Office—East Pat¬

following 2y2-for-l split of the present out¬
standing $12.50 par stock. Proceeds—To provide addi¬

by certain stockholders). Proceeds—From sale
preferred to provide funds for expansion.
Office—
Loewi

the

organized to acquire

Corp., Houston, Texas
application has been filed
for permission to construct a 961 mile
pipeline system 10 cost $iuo,836,000.
Underwriters—May
be Blyth & Co., Inc., San
Francisco, Calif.; and Scharff
& Jones, Inc., New Orleans, La.

the

to be owned

sold

—

and

I., N. Y.)
plans to offer to its
stockholders 79,560 additional shares of new capital stock
(par $5) on the basis of one share for each IVz shares

i Central Wisconsin Motor Transport Co.
July 9 it was reported early registration is
expected
of 34,6C0 shares of 6%
convertible preferred stock (par
$10) and 66,500 shares of common stock (the latter to

Underwriter

Co.

stockholders.

east

offering of stock,

Fort Neck

(3) For common stock—Blyth & Co.,
Inc., Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co.
(jointly). Common stock will probably be offered first for
subscription by stockholders.

Rapids, Wis.
Milwaukee, Wis.

Union

Eternalite, Inc., New Orleans, La.
May 28 it was reported company plans to issue and sell

June

(jointly); Kidder, Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane.

Wisconsin

Grand

centers

from

terson, N. J.^ Underwriters—Morgan Stanley & Co. and
W. E. Hutton handled new financing by Grand Union
Co. in 1954.
.■•/'— •/.
Z.-".v
;;
'
1'

$4.50

ferred stock—Lehman Brothers and
Bear, Stearns & Co.
(jointly); Blyth & Co., Inc. and The First Boston Corp.

shopping
come

about 200,000 shares of class A stock.

-r-Halsey. Stuart & Co. Inc.: Kuhn, Loeb & Co. and A.
C. Allyn & Co.- Inc.
(jointly); Salomon Bros. & Hutzler~
Blyth & Co., Inc., Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane
(jointly); Blair & Co Incorporated; Equitable Securities Corp; (2) For pre¬

develop

offered to Grand

security to be sold and the/
timing of the transaction have not been deter¬
mined. It is also possible, if favorable money conditions
at

and

one-third

exact

prevail

locate

Mississippi, the funds to

Houston Texas

Feb. 29 it

May 21 it

Foremost

been

Underwriter—May be Merrill Lynch, Pierce,
Beane, New York.
!

company.
Fenner &

Kaiser Steel

Dolly Madison International Foods Ltd.

/•

1 Detroit Edison Co.
•
Feb. 20; Walker L.
Cisler, President stated that "tenta¬
plans are that about $60,000,000 will be obtained
from investors in 1956. Internal funds
and bank bor¬

tive

Hol¬

substantial part of the operating assets of the Delaware

with

Power &

Registra¬

struction program. Underwriter—To be determined by
competitive bidding. Probable bidders:. Halsey, Stuart/;
fy Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fennerf;
& Beane and Kidder,
Peabody & Co, (jointly); Blyth,
& Co., Inc.; The First Boston
Corp. and Salomon Bros.
& Hutzler
(jointly); Lehman Brothers; White, Weld &Co.
7,
Carolina

Aug. 14.

sary." Underwriters—Morgan Stanley & Co. and
Clark,
Dodge & Co. /..v.
v

,//:■////;

/-cv,

plans an offering
1956, if market and

(EDT)

Chicago, III.

It appears that

a.m.

July 20.

Elliott, President,

meet the cost

company

late

bonds

Crane Co.,
F. F.

opportu¬

nity to subscribe, pro rata, for shares in the New Jersey

—

date

of
an

Nov. 13.

Metropolitan Edison Co.
April 16 it, was reported company
or

August,

depending

upon

market

may

issue

in July
about

conditions,

$5,000,000 of preferred stock (in addition to about $5,000,000 of bonds).
Underwriter — For preferred stock also
to be determined

by competitive bidding. Probable bid¬
Smith, Barney & Co. and Goldman, Sachs & Co.
(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Co. Inc. and Union Securities Corp. (jointly); Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp.
"

ders:

Continued

page

The Commercial and Financial Chronicle ...Thursday

(208)

Michigan Bell Telephone,Co., • ',
*
verities Corp. (jointly). Bids—Expected to be received up;
April"19 company applied to the Michigan P. S. Comto 11a.m. (EDT) on Oct 17.
mi&ion for permission to issue and sell $30,000,00,0 of
Ohio Power Co. (10/17)
40-year debentures later this year. Proceeds—For con¬
July 2 it was reported company proposes to issue and
struction program. Underwriter—To be determined by
sell 60,000 shares of cumulative preferred stock (par
competitive bidding. Probable bidders; Halsey, Stuart &
$100). Underwriter—To be determined by competitive
Co. Inc.; Morgan Stanley & Co.
bidding.
Probable bidders: The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities
Minneapolis Gas Co.
Corp. and Salomon Bros. & Hutzler (jointly); Harriman
April 16 stockholders approved an increase in the
Ripley & Co. Inc. and Stone & Webster Securities Corp.
authorized common stock (par $1) from 1,700,000 shares
(jointly); Lehman Brothers. Bids—Tentatively expected
to 2,500,000 shares. Previous offer to stockholders was
to be received up to 11 a.m. (EDT) on Oct. 17.
underwritten by Kalman & Co., St. Paul, Minn.

•jr Missouri-Kansas-Texas RR.
on

Oklahoma Gas

(7/25)

July 25, for the purchase from it of $3,645,000 equip¬
1, 1956 and to

National Steel Corp.

completed in mid-1959 will
$200,000,000. Underwriters—*
Kuhn, Loeb & Co.; Harriman Ripley & Co. -Inc.; and/
The First Boston Corp.
;
the current year and to be
a

minimum of

Pacific Northwest Pipeline Corp.
March 20 C. R. Williams, President,

Natural Gas

Pipe Line Co. off America
Feb. 20 it was reported company plans to issue and sell ,
late this Spring $35,000,000 of first mortgage bonds due
1976. Underwriter—If determined by competitive' bid-"
ding, the following may bid; Halsey, > Stuart & Co. Inc.;
White; Weld &~Co.; Lehman Brothers and- Union Secu*:
rities Corp. (jointly).

announced that
about 280,000 shares of common stock (par $1) are to be
sold in connection with subscription contracts which
were entered into at the time of the original financing
in April of 1955. .Price—$10 per share. Proceeds—To-gether with funds from private sale of, $35,000,000 addi¬
tional first -mortgage bonds,: and $10,000,000 * of 5.6%
Interim notes and borrowings from- banks, will be used
to construction program. Underwriiers^White, Weld &
CoJ 'Kidder, Peabody & Co.; The Dominion Securities
Corp.; and Union Securities Corp. j Registration — Ex¬
pected 'sooii.'
./'v;'p V;■ ■,/..r;,';> r"

;

( New England Electric" System

•

Jah.:; 3 it was announced^ com^aiiy> j>lahs 'fe rm
subsidiaries, Essex 'COUnty Electric C6.+ LoWell- Electric;
Light CorpX Lawrence Electric Co., Haverhill Electric:
Co. and Amesbury Electric1 Light Co;; into- one company \
during 1956. This' would be - followed by a $20,000,000
first mortgage bond issue by the resultant company, the

South Carolina Electric 8r Gas Co.

• Pacific Telephone & Telegraph Co. (8/21)
July 6: the California ,P„ U. Commission authorized the

that it,
be re¬
quired in connection with the company's 1956 construc¬
tion program. The company proposes to obtain a part

March 9, S. C, McMeekin, President, announced
is expected that $10,000,000 of new money will

of its

new

requirements from the sale of $5,-

money

balance from the
amount of bonds.
Underwriter—Kidder, Peabody & Co., New York.

000,000 of preferred stock and the
private sale of $5,000,000 principal
Southern California Edison

Co.

(9/5)

July 5 it was announced company plans to sell not ex¬
ceeding $40,000,000 of first and refunding mortgage bonds.
construction

Proceeds—For

any

March 12 the company announced that it is estimated
that total construction expenditures planned to start in1
to

,v-/v

Co.

5,000,000 shares. Company has no immediate plan to do
equity financing. Underwriters—(1) for any com¬
mon
stock (probably first to stockholders) — Merrill
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,
to be determined by competitive bidding. Probable bidbers: Merrill Lynch, Pierce, Fenner & Beane and White,
Weld & Co. (jointly); The First Boston Corp.; Lehman
Brothers and Blyth & Co., Inc. (jointly); Smith, Barney
& Co.; Kuhn, Loeb & Ccf.; Harriman Ripley & Co. Inc.

annual instalments. Probable bidders:

Ilalsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

amount

& Electric

May 17 stockholders voted to increase the authorized
preferred stock from 240,000 shares to 500,000 shares and
the authorized common stock from 3,681,000 shares to

to noon (CDT)

ment trust certificates to be dated Sept.
mature in 15 equal

Bids will be received by the company up

IZ,

Securities Corp. find Salomon Bros. & Hutzler (jointly);-,. 40,000 shares of cumulativeprof erred. ^toek^(par ^lOO).
Harriman Ripley *& Co. Inc. and Stone & Webster Secu-^X .Underwriter—The -First:
Corp: Neyr*-Yorfe.

;

Continued from page 43

July

program.

Underwriter—To

competitive bidding. Probable bidbers: Halsey, Stuart & Co. Inc.; The First Boston Corp.
and Dean Witter & Co. (jointly); Blyth & Co., Inc.;/
Kuhn, Loeb & Co. Bids—Tentatively expected to be re¬
ceived on Sept. 5.
■ '•.
•
be

determined

Counties Gas Co.

Southern

Jan. 30 it

of California

reported company may in the Fall offer

was

$15,000,000 of first mortgage bonds; Underwriter—To be;
by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Cor^.1; White, Weld & Co.; Merrill Lynch, Pierce, * ;
determined

Fenner & Beane*

;

-/•'

•',• ;/V;

£■*: j /

do.

Southern Electric Generating

May, 18, it was announced that Ihis compahy, SO^ oWned ; '
by Alabama Power Co. and 50% by Georgia -Pbwer Cb.j, t1
subsidiaries of Southern Co., plans to ■issue^debt securi- J ;
.ties.. Proceeds—Together with other funds; ftp construct;
and operate a $150,0j00,00tf steam electric generating plant «/
on

the Coosa River in

l-Alab'ama;^s^nderwriter^Msy/bet/;:

competitive"; bidding,Probable tbidders; >
Halsey; Stuart; & Co!' Inc^r Union/^ecurhieS X
) J.
determined by

Equitable Securities Corp; ahd
Lehman Brothers; JHairimam

T?reie^^£^>(Whtly), J

Riptey 8c-Co./

Sachs & Co* (jointly);
Peabody & Co. (jointly);
man;

Southern Nevada

Power Co.

of which has not as

name

writer

—

Company to issue and sell
tures due Aug, 15, 1988,

$78,000,000 of 32-year deben-;
Proceeds — To reduce tem¬
porary borrowings arid for capital expenditures. Under- •
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley 6
& Co. Bids^Tentatively scheduled to be received up to
8:30 a.m. (PDT) on Aug. 21. Registration — Expected
July 27.
\:r*.

yet been determined; Under-^

May be determined by/' competitive "bidding/

Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb!
& Co., Salomon Bros. & Hutzler, Union. Securities Corp.;
and Wood, Struthers & Co. (jointly); Lehman Brothers;:
The First Boston Corp.; Equitable Securities Corp,;Mer—

rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld
Co. (jointly),
' ..
;
^
*'

New- England. Power C«L v"';- -/■ '• V,:;

Jan. 3 it

was

$10,000,000
oil 1956.

'•*b'

announced company

plans to issue end sell
first-mortgage bonds - during. October,5

Underwriters—To be determined by competi-:

Telephone & Telegraph Co. (8/29)
offering to stockholders

of outstanding stock. Proceeds—To repay
Underwriter—None.

540,651.75 shares of Pittsburgh Rys. Co. Price—About $6
share.

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this, year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts

Co.

of the

have

Northern States Power Co., Minn.1
(9/12) *
July 2 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds due 1986. Proceeds
—For construction program.
Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Blyth & Co., Inc. and The First
Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner &
Beane,
Kidder, Peabody & Co, and White, Weld & Co. (jointly)f
Equitable Securities Corp. and Union" Securities
Corp;
(jointly); Smith, Barney & Co.; Lehman Brothers and
Riter & Co. (jointly); and
Glore, Forgan & Co. BidsExpected to be received on Sept. 12.

David

an.

Commission for

First

Kuhn,

Loeb & Co., and Lehman
Stanley & Co. and Drexel &

amoTmf to

$8?Jo007600, including $20,000,000 budgeted for

This large" expansion, the company says, can be
financed wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive bidding, may,
1956;

to the Gulf Coast of

include Halsey, Stuart & Co. Inc.;

private- salo,of first mortgage bonds' and
—.
uviuua- auU'
-1

Corp.;

Feb; 15 the company announced that it estimates that its
construction
program for the years
1956-1959 will

Mississippi. It is estimated that this gather¬
ing aystem will cost approximately
$150,000,000/ Type
aDnlng kas not yet been determined, but tentative

nukiu

Boston

Puget Sound Power & Light Co.

384-mde submarine gas pipeline off-shore
the coast of

call' for

Proceeds—To

Puerto Rico Water Resources Authority (7/12)
July 2 it was announced that Authority is planning to
offer $22,000,000 of electric revenue bonds due July 1,
1958-1993, inclusive. Proceeds—For improvements. Un¬
derwriters—The First Boston Corp., Ira Haupt & Co.
and B. J. Van Ingen & Co.

Lougiana of
from the Sabine River
the State

determined.

Brothers (jointly); Morgan
Co. (jointly).

Texas
Bihtliff, President, announced com¬
application with the Federal" Power

a certificate of necessity to build

securities to be issued and the time of sale

—

0f,*h<""e Gathering Corp., Houston,
18

74ov.

new

not been

help finance
construction program. Underwriters—For any debenture
bonds
may be determined by competitive bidding;
probable bidders include Halsey, Stuart & Co. Inc.; The

Underwriter—Probably Blyth & Co., Inc.

..A

$40,000,000 of securities (probably^
notes, convertible into preferred stock,: at. maturity.' and,
common stock)v
Underwriter—SalomonBros. & Hutzler.

The First Boston Corp.

it Racine Hydraulics & Machinery, Inc.
- July. 9 it was reported, that company plans to issue
.

•

suance

and sale to stockholders later..this year; of some;

sell some additional common:
Srtfll SUIlltT ctUUlLlUItcIl UOtll

additional common stock ^on-a pro rata

basis (with ait
oversubscriptionXpri vilege)»> Under writer- /XT~"~

-1.

Spencer Telefilm Corp., Beeumoht^Texee '
,
was announced company plans to" ofter pub-;
licly to Texas residents 75,000 shares/ Of Capital ;• stock*"'
Price—1-$1.50 per share; - Besiness^-To -proctoc«,Xl5eU~*and
distribute syndicated films for television* /Underwriter— /
Porter-Stacy Con Houston, Tex..,
.
X;J
Jan; 16 it

• Tampa Electric Co.'/ (8/^9)
1 }r&X-'/f"c-*.>V
*•/'*•;'
July 9 it Was reported company plans to issue and sell
$10,000,000 of first mortgage bonds due 1986. Proceeds—

For

construction

program.

Underwriter—To be deter-,

competitive bidding/ Probable bidders: Halsey,
& Co. Inc.; Stone & Webster Securities Corp.;

mined at
Stuart

Goldman, Sachs & Co.; Kidder, Peabody & Co. Bids— '
Expected to be received up to ll'a.m. (EDT) on Aug. 29.
Registration—Planned for Aug. 1.
v
^
'
.f-

May 10, Gardiner Symonds; President,- announced that,
plans to sell about $50,000,000-of mortgage
iri the third quarter or early in the fourth

company

bonds

late

quarter of

For expansion program.;
White,
Halsey, Stuart & Co. Inc.
Proceeds

1956.

—

Weld & Co. and

United

Rubber Co.

States

29, H. E. Humphreys, Jr., Chairman,
issuance of convertible debentures is one

June

stated that
of several

possible methods the company has been considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and working capital. He added that, if
convertible debentures are issued, they will be offered
rata to common stockholders.
Loeb & Co., New York.

pro

Underwriter—Kuhn,

University Life Insurance Co., Norman, Ok!a.
Wayne Wallace, President, announced company

June 21,

plans in near future to offer to its 200 stockholders 500,000 additional shares of common voting stock at rate
2,500 shares to each stockholder. Un¬
will be offered to public.
Price—$2

of not mofe than

subscribed
per

stock

share.

Virginia Electric & Power Co. (9/25) „
Feb. 6 it was announced company plans to issue and sell
$20,000,000

first

and

refunding* mortgage

Underwriter—To be determined by competitive
Probable bidders:

bonds.bidding^.

Halsey, Stuart & Co^ Inc.; Kuhn, Loeb

Co., American Securities Corp. "and Wertheim & Go.
(jointly);- Salomon Bros.'& Hutzler; Stone-& Webster*
White; Weld & Co.; Union Securities
Corp.. Bids—To be opened on Sept, 25.. <
"
&

Securities. Corp.;

Products» lnc*, New /York-

stock. Underwriter—Loewi

& Co., Milwaukee? Wis.

June

was^re^ST^r^ -Olierir^ds expected in near

70,000 shares of comiti on*"STOTrrr^-U.ndcr*
wrRer^-Crranb^ry, Marache & Co., New York,; Registra-.
future of over

Rochester Gas A Electric Corp.

tiOiiT-^Expected" sbom:

;

Washington Gas Light Co.
^
..
•
June-Z. it: was announced company; proposes to: finance >

construction>of * pipeline in / Virginia to- :
$3,380,000 from funds generated by.operations,,
sale of common stock and tempcu^ry. bank ,borrowings. be^etermined by compeHttT^biOdnig; Prob/ Rochester Telephone Cor|K
Stuart Jr COi lnc.; The Fli^Bos^v
May.28 it was. repofred company hasapplied to the New.; Underwriter — The First Boston.'Carp^Reyr, Yorkrhhip
BIyth & G6.v Ine-j Kuhnj Loeb & Ua; Union ^^^YQrk P. S. Comnrissiorr for'
authority toHtesue and"sell*. Johnston, Lesnon & €5dC^.
i
X
.

Southern Union
:: -'»»*■ --r •*
April 19 it was. announced company - is considering -is^;>

an(T—v^-rood

May. 16 stockholders^'approved ai proposal, io increase/
the authorized /.preferred?.stock by- 100,000 shares (par :
$100), OLWhichr.it; is planned /to issue" 50;000 shares later:
July 2 ii was reported., company "plans to issue and sell,ihl956» Underwriter—The: First Boston Corp^New:
$28,000,000 of first mortgage- -bonds due 1986. UnderYork.
.
,
New York.-

bonds, series C, due 1986; Proceeds-^Fof coristructionr,
Offering-fMay be placed privately. '■

Underwriters—Stone & Webster Securities Corp.,

Public Service Electric & Gas Co.

reported company plans to finance its
1956 construction program
(costing about $40,000,000)
through issuance of debt securities and treasury funds.

to'sell. in the# ■*
mortga'ge "

estimated '$4J)00,000 of first

Tennessee Gas Transmission Co.

per

was

pany has filed

(Del.)
April 9, Walter E. Seibert, President, announced that
company will soon file a registration statement with the
SEC preparatory to an equity offering planned to take
place later this year. Business—To explore, drill and
operate oil*, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway. New
York, N. Y.
"
U' V'
May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

York.

Northern Natural Gas

basis. American Telephone & Telegraph Co. owns an
aggregate of 89.6% of: the preferred and common stock.
Price—At par ($100 per share). Proceeds — To repay
temporary borrowings and for new construction. Under-

1956

Fall of

Pittsburgh Rys. Co.

Aviation, Inc.

(following proposed 2-for-l split up to be voted
Aug. 3). Underwriter—Morgan Stanley & Co., New

March 12 it

to offer 1,562,267 additional common shares
and: preferred- stockholders
on
a ! 1-for-

June 8, it was announced company plans to offer to its
stockholders rights to subscribe for additional capital
upon

common

Pan Cuba Oil & Metals Corp.

temporary borrowings.

stock

fc X:

writer—None.

June 20 directors authorized an

North American

■

of 613,010 additional shares of capital stock (par
$100)
at the rate of one new share for each five shares held
as of Aug.
29.
American Telephone & Telegraph Co.

69.21%

Telephone & Telegraph Co.

«July., 6 g^mpany . was authorized by the California P. U.'
to

Probable bidders:
Halsey, Stuart & Co;
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers &' Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill LynchrPierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).;

owns

Pacific

Commission

live bidding.

New England

•

June 27 it was announced company plans

proposed

cost about

new

Volume* 184

Number 5550V

The Commercial and Financial Chronicle

(209).

The

following statistical tabulations

latest week
week
Latest

month available.

month ended

Month

IRON

INSTITUTE:

STEEL

AND

Indicated steel' operations

Week

(percent of capacity).

Week

Ago

aluminum

•12.7

§12.3

93.4

91.2

oil

gallons

Crude

July 15

•312,000

§302,000

2,299,000

2,202,O0C

Kerosene

output—daily

(bbls.

average

CAN
June 29

7,037,050

6,6l0,70(

8,087,000

8,072,000

27,263,000

27,218,000

25,683,00(

June 29

2,125,000

1,954,000

1,978,000

Finished

June 29

12,358,000

12,487,000

12,580,000

7,962,000

7,696,000

8,319,000

181,601,000

•181,104,000

184,870,000

25,779,000

24,583,000

21,879,000

159,611.00C
29,893,00C

(bbls. )- at__j__„

—.—

"Distillate fuel oil (bbls.) at—__—

Slab

June 29
June 29

Residual fuel oil- (bbls.) 'at

freight loaded, (number -of cars)_

Revenue

93,672,000

87,793,000

38,374,000

38,050,000.

freight received* from connections (no. of cars)—June 30

77,399,000

zinc

June 30

799,461

719,209

y'.:, 661,510

636,111

695,841

643,754

;*•

NEWS-RECORD:. v
•
Total U. S. construction

634,03*1

Public

construction

municipal

Federal

COAL

July

$389,798,000

$415,928,000

$250,213,000

$378,851.00C

'154,671,000

'116,022,000

200,559,00(

DEPARTMENT

198,388,000

261,257,000

134,191,000

178,292,00(

Other

145,737,000

217,352,000

105,466,000

96,737,00;

52,651,000

43,905,000

28,725,000

81,555,00C

.June 30

7,070,000

•10,290,000

—June 30

672,000

595,000

Electric

output (in 000 kwh.)_

FAILURES

Personal

;

8,720,000

86.00C

DUN

—

■

•///</

105

'//

0:,^.

109

•V

10,391,000

11,498,000

10,951,000

257

249

208

.July

5.179c

$57.17

$60.29

(per gross ton).

-July

$44.83

$45.83

$37.17

PRICES

(E.

Electrolytic copper—
••/■' Domestic refinery at
Export refinery at

tin

Lead

(New York)

Lead

(St.

Zinc

(East St.

at.

at—;—

Louis)

at/

Louis) at.

.—

45.425c

45.350c

Rent

39.350c

39.900c

39.950c

35.950c

92.875c

94.625c

93.750c

95.250c

16.000c

15.000c

15.800c

14.800c

13.500c

V'.f..

Aaa

...

13.500c

-July 10

\v' Baa.

Group.
Utilities Group.

^Industrials Group

W-\

——

U. S. Government Bonds-.

'Average corporate
Aaa
Aa

—

Baa

Public

Utilities

INDEX

—

1. •

107.5

___/

121.5

.__

and

.120.9

PAINT

403*97

Cotton

INDEX—

LOT

DEALERS
—

3.36

3.15

3.50

3.48

3.23

Stocks

3.78

3.75

3.51

Produced

3.56

3.31

3.44

Crude

SPECIALISTS

AND

EXCHANGE

3.40

3.39
415.1

sales

Number

;

229,362

344,224
272,725

339,564

281,176

418,186

443,477

Dollar value

—

^-Customers' short sales

Customers'

other sales

557,881

——

$53,593,004
/... 794,360

.is.4,234

-June 16

EXCHANGE

ACCOUNT

FOR

Total

round-lot

Shrift

$54,626,039

.'847,667

$66,962,066

'•/

4,906

4,009

842,761

'1,008,960

96,409,000

384,109,000

416,113,000

527,813,000

112,797,000

148,190,000

105,709,000

125,619,000

116,480,000

135,366,000

245,736

258,381

266,945

123,115

179,398

139,630

135,760

171,707

145,783

125,993

138,171

53,761

58,780

89,292

63,698

70,958

91,796

65,976

164,626

230,640

78,314

197,793
111,065

1109,481

121,889

142,527

687

391

182,600

225,390

^ / 245,680

225,390

322,610

182,600

245,680

sales

Other

sales

;

———

sales

445,400

430,080

415,260

520,630

8,948,610

9,754,320

11,309,940

9,363,870

10,184,400

.11,755,340

FEDERAL

SAVINGS

EARNINGS
OF

CLASS

operating expenses
ratio

1,318,500

1,574,840

82.3

80.5

2,615

2,238

2,595

$877,892,095

$852,552,169

671,031,930

636,411,508
'
"
74.65

INSUR¬

March__
(AS¬

1,692,570

280,500

282,700

302,120

.323,360

24,450

33,600

26,800

16.600

251,960

323,500

328,390

278,760

340,100

352,840

490,697

560,565

650,685

56,500

68,990

80,780

565,168

612,253

621,668

681,243

2,327,815
328,750

2,537,665
370.960

89.5

91.1

89.8

101.4

102.9

.July

$0.4

77.5

82.9

All commodities other than farm, and foods-

.July

121.4

115.8.

86.7

Meats

76.44*

Total

86,000,000

$281,000,000

276,729,255

274,374,222

73,888

61,914

44,142

$272,824,702

$276,791,169

$274,418,365

463,485

465,393

503,516

$272,361,216

$276,325,776

$273,914,849

8,638,784

4,674,223

7,085,15t

$272,8?4,702

$276,*791.169
6,259,382

$274,418,365

•

owned

not

the

_____

debt

obligations

Deduct—other
gations

public

101,460,174

73,000,000

272,750,913

gross

94,159,387

85,000,000

LIMITATION

debt

obligations

93,253,556

102,472,454

be i>outstanding

—

public

92,509,249

omitted):

may

teed

2,351,584

89.4

that

time

any

DEBT

(000's

Treasury
„

102.3

amount

gross
Guaranteed

423,520

-July

June

Total

2,604,335

2,775,104

face

Outstanding—

709,614

2,087,547
352,910

STATUTORY

GOVT.

—As

Total

628,834

581,635

"75.82

$281,000,000

railway operating income before charges—
income after charges (estimated)

Net

339,320

508,375
-

'—:—

100,511,767

619,195

73,260

Operating

372,920

114.?

and

guaran¬

__i—

public debt obli¬
to debt limitation

outstanding

subject

not

total

Grand
...»

products.

.....

110.0
*

Balance
under

UNITED

face

§Based on new annual capacity of

tons. - tNumber of orders not reported
-

128,363,000 tons

since introduction of
-

outstanding

amount

above

STATES
June

Net

GROSS

30—

■

issuable

annual

DIRECT AND

DEBT

omitted):
■'

balances.

*
—

—

6,546,183.,
$266,278,519

debt

Computed

obligations,

authority

GUARANTEED—(000's

General fund

1,058,000 barrels of foreign crude runs.

of .Jan. lf 1956..as against Jan.. l, 1955 basis of 125,828,319
Monthly-Investment'" Plan.♦•*•
.

81.2

RRs.)—Month

operating revenues___

113.8

773

U. S. DEPT. OF

commodities

"Revised- figure,^ ^Includes

114

121

$925,355,033

ROADS

AMERICAN

1,383,430

113.9

'122

118

;

£__r_

LOAN

AND

CORPORATION—Month

1,297,320

100)_
„

1,084

FORECLOSURES-

1,230,420
1,486,070

Processed foods.

.as

ESTATE

1,065,650

.July
.July

—

856

1,258

of May:

2,237,963
2,608,923

LABOR —.(1947.-49

•

REAL

Total

2,119,088

PRICES, NEW SERIES

3,672

4,713

613

1,566

123

(1947-49=100)

Total

2,447,838

—

——

—„

3,760

201

COMMISSION—

309,140

1,825,985

;

Commodity Group—

COMMERCE

1,661,780

-June 16

150

657

Average=10«—

of Railway Employment at middle

277,520

-June 16

•.

RE¬

adjustment_____^______

1,584,860

—June 16

4—

599

•

226-

701,614,581

SYSTEM—1947-49

seasonal

ANCE

———

SALES—FEDERAL

255,650

2,178,895

Farm

STORE

1,484,550

—June 16

pounds)—
£_
_______

SOCIATION

-June 16

All

31__

1,316,350
252,850

—June 16

sales

WHOLESALE

(1,000

RAILROAD

-June 16

Other

etc:

_________—

NON-FARM

14,172,660

—June 16

584

___________

223

May

Without

—

13,652,030

June 16

87,480

■

Grabbots,

Index

June 16

sales

Total sales

;

(1,000-lb. bales)—

INTERSTATE

June 16

;

purchases

Short

May --31—-

SERVE

Net

______

——

-June 16-

——

Total sales
Total

■

Adjusted for seasonal variations.

]

Total round-lot transactions for account of members—
-

(tons)

MU>nth of June:
441,490

-534,490

the floor—

sales

Other

May 31__

June 16

—

purchases'

Short

(tons)

Shipped

transactions Initiated off the floor—

Total

(tons)

-June 16

sales

Other

446,680

43a,030

.June 16

purchases'/

Short

May 31_

Produced

322,610

-June 16

Other transactions Initiated

Total

(tons)

DEPARTMENT

MEM¬

„—

101,987,000

„

(pounds)

(tons)

Fiber

May

Total sales

Total

-June 16

Short sales
Other

____^

Meal—

Stocks

(SHARES):

7,269

112,824,000

Motes,

$59,838,044

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks In which registeredTotal purchases
-June 16
,

31_"

May

;

ON THE N. Y. STOC.K

421,820

Produced

1,207,849

$52,224,287

.June 16

ACCOUNT

284,731

523,106.

4,257

$43,655,436

.June 16

FOR

15,863
387,296

123,785,000*

sales—

TRANSACTIONS

19,474
257.523
285,057

136,275,000,
159,085,000

8tocks

1,212,106

.June 16

salda

Other

ROUND-LOT

/•

■

Stocks May

1,012,969

790,126

-June 16

sales

Total sales

MEMBERS

(tons)

May 31__

74/43 7,000

Hull

ROUND-LOT STOCK TRANSACTIONS

AND

119.9

/ '..'■

mills

Shipped

1,313,207

$40,651,871

-June 16

SALES

commerce—Month

Shipped (tons)
Linters (running bales)—

$67,099,157

—

TOTAL ROUND-LOT STOCK

Produced

1,271,103

1,053,127

1,001,127

-June 16

sales

106.5

■1fKtnrp*-

prod-

91,144,000

Round-lot
-

seei*

cotton

•

purchases by dealers—
Jlumh£r.:Of. shares.

113.9

121.4

121.5

(pounds)

Produced

106.76

—June 16

sales

Other

127.5

108.2

Hulls—

June 16

131.6

120,866,000

Shipped

•

582,242

108.70

108.07

/108.87

-June 16

Dollar value

Short

and

(pounds)

.Stocks

—,

Round-lot. sales by dealers—
Number of shares—Total sales.

164.9

;ii6.2

*119.5

108.2

(tons)

Produced
r

—

131.9 <■'-

tl i

Number- of orders—Customers' total sales

125.5

,126.4

,116.5

119.6

Oil—

Stocks

279,30:

Odd-lot'purchases by dealers (customers' sales)—
«,?

170.8:
>
*

June 16

(tons)

Cake and

COMMISSION:

/ *;
h

116.9

If/

purchases)—t

dealers- (customers'
I

90.3

Consumption

402.7

Odd-lot

117.4

91.1

126.9

Shipped (pounds)
Refined Oil—

3.17

414.7

STOCK

97.3

125.0

Stocks (pounds) May 31_______„_________
Produced (pounds)

3.22

3.46
3.40

416.5

281,606

July

SECURITIES

105.7

98.1

91.1

recreation

Crushed

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

103.3

106.5

97.9

Seed-

Received

Stocks

257,108

1(H)

119.0

104.8

122.8

•

Cotton

3.05

103.7

122.1

seed

3.24

;

122.5

102.7

107.0
,

____—

May:

•

;»

June 30
—June 30

110.9*

129.7

122.4

girls'/_'£_/_____£_£__l_£

ucts—dept.

;

2.82

June 30

130.3

111.8

102.6

;

-j-V Other goods and jyrxvicjei|~-r_v^-*—-

lOO^-i

2.85

June 30

DRUG REPORTER PRICE

AND

AVERAGE

1949

—

106.04

3.46

119.4V

131.7

109.06

,,,.120.8

...

and

3.27

3.56

108.4

111.8

care

3.46

.120.2

,172.5

3.35

3.57

104.0

116.7
110.8

127.9

;

™_i£_*.

3.25

106.4

110.9

boys'

and

3.48

3.49

104.8

Reading

105.17

2.89

129.8
102.1

,_L

operation

Personal

107.44

110.0

94.0

•

"*>io<r.oo

111*1

124.5

95.5

electricity

108.88

•'?.i 103.13

105.86

2.93

114.2

109.6

107.9

124.7

Medical care

112.19

114.9

109.5

vegetables

Private

Unfilled orders (tons) at end of period-

99.52

•104.83

3.78

115.4-

Public

Percentage of activity——-

1,819

fuels and fuel oil_,

-110-.34-

104.48

103.13

3.37

-July 10

—;

3,011

1,830

1947-49=100—

132.2

and

Footwear

PAPERBOARD ASSOCIATION:

2,996

1,867

3.48
-

July 10

;

2,876

7,419
2,589

3,135

foods at home_

3.26

July 10

7,702

2,981

____1.

Orders received (tons)
Production (tons) —

OIL,

105.86

}

Group—.

Group

MOODY'S COMMODITY INDEX
NATIONAL

106.74

Group

Industrials

108.16

July 10

Railroad

r«v

July 10

5,063

7,983

and

Women's

95.73

;.-*;•"

-,_July
July
July
July
July

5,760

;

Men's

108.70

104.14

104.83

MOODY'S BOND-YIELD DAILY,, AVER AGES:
,,..

95.34

108.52

102.96

.——July 10
July 10

___—

1,546

5,829

Apparel

12.500c

104.83

106.56 r

■

99.52
,•

—.

1,611

products

Household

104.66

104.31

July 10

....——

Public

i/..»

94.90

108.34

—i—„— July 10

Railfoad

5,555

1,642

loans

apparel
Transportation

106.39

...——————j————.y——■

A-'Sui;;:—.

^«'

104.48

Aa
.,

94.38

*-July 10

-s.-.

11,985

6,183

——/
1,

———

credit

Housefurnishings

35.700c

July
July
July
July
July

1—July io

corporate

Average

24.149

6,244

Other

MOODY'S BOND PRICES DAILY AVERAGES:
:< u. S. Government Bonds___-

$31,568

28,260
,14,706

bakery products
poultry and fish

Other

■

July

York)

(New

$35,962

28,591

_L.L

Fruits

Solid

Straits

$36,574

111.0

Gas

.'_1_

goods

Housing

J. QUOTATIONS):

;

home.

Meats,

$56.59

57,231

credit

term

PRICE

Food

4.797c

.July

48,603

34,003

SERIES—Estif-

intermediate

payment

Dairy

Pig iron (per gross ton)—_.

59,577

May 31:

items

204

99,039

RE¬

Cereals and

84,458

69,568

45,921

Food

9,759,000

Scrap steel

FEDERAL

Month of May:

July

INC.———-

IRON AGE COMPOSITE PRICES:
Finished steel (per lb.)—

METAL

THE

Service credit

81,238

70,025

£ *"

(torts)

credit

loans

BRAD STREET,

Charge accounts

All

-July

INDUSTRIAL)

Single

2,232.00C

398,000

/'/■

—i

AND

(COMMERCIAL

•

(tons)_.

of period

i'j-

■.

78,370 '
67,922

credit___^__^

consumer

ONSUMER

June 30

INSTITUTE:

ELECTRIC

EDISON

Repair and modernization loans_«^;

INDEX—FEDERAL RESERVE

SALES

SYSTEM—1947-49 AVERAGE —100

1- '

STORE

(tons

OUTSTANDING—BOARD

Non-instalment

(tons)—

grades
pounds

Automobile

(Ui S. BUREAU OF MINES):
coal and lignite (tons).

Bituminous

222,991

•

»14,876

Instalment

191,410,000

OUTPUT

*/' Pennsylvania anthracite

period

at end

and

consumer

-July
..July1
-July

all

2,000

SYSTEM—REVISED
snort

-July

303,343

289,616

CREDIT

millions

Total

construction

State and

end

GOVERNORS

Private

378,937

306,223

SERVE

■

output

(tons

Unfilled orders

ENGINEERING

CONSTRUCTION

13.949

358,271

pounds)

Stocks

44,799,00C

755,292

■

126.394

19,240

(AMERI¬

institute, inc.—Month

smelter

2,000

Shipments

99,981,00(

35,836,000

145,895

14,112

CONSTRUC¬

maued

ENGINEERING

STEEL

144,726

April

(tonnage)—estimated____-_(tonnage)—estimated

CONSUMER

Revenue

CIVIL

June:

ASSOCIATION OF AMERICAN RAILROADS:
''

Ago

closed

american zinc

7,754,00(

June 29

Contracts

11,257,00(

June 29

in transit, in pipe lines—
gasoline (bbls.) at
.June 29

and. unfinished

Kerosene

STRUCTURAL

INSTITUTE

Shipments

Etocks at refineries, bulk terminals,
-

Month

2,026,00;

(bbls.)_:_;—

fuel oil output (bbls.)
Residual, fuel oil output (bbls. )_

Year

Month

mines):

TION)—Month of May:

7,499,00(

27,482,000

Distillate
•*

7,055,850

118,144,000

June 29

(bbls.)

output

7,034,350

June 29

—

Stocks of aluminum (short tons) end of

(bbls.).

stills—daily average

output

(bureau

FABRICATED

each)
to

runs

Gasoline

condensate

and

of that date:

are as

Production of primary aluminum In the U. 6.
(in short tons)—Month of April

AMERICAN PETROLEUM INSTITUTE:
Crude

of quotations,

cases

either for the

are

Latest

.July 15

Equivalent to—■»
Steel ingots and castings (net tons).

or,

Year

AMERICAN

production and other figures for the

cover

Dates shown in first column

that date,

rate

2.576%

6,215,665

$270,531,787. $.268,202,700
2.546%
2.351% "

The Commercial and Financial Chronicle

(210)

Canadian Fund

"Oscar" Judges
panel of experts consisting of

tor of "Sales

part¬

By ROBERT R. RICH

will

Wellington

judge the

made

Buying Stocks

Whitehead,

Miller

Net

the

Eighth' Annual

Mutual Fund Sales Convention in

Chicago, Sept. 20-22, 1956.

Inc.,

Behavior

umfcwi

oil

15.9%

in¬

assets,

(non-ferrous) 8.3%, build¬
ing 7.4%, steel 7.1%, paper 6.8%,
railroad 6.4%, aviation
chinery 5% each.

of
Canadian Fund,
mutual fund managed by

the

For

assets

Calyin Bullock; totalled $38,050,710, equal to $19.25 per share, on
May 31, 1956, according to the re¬
port for the six months ended on
that date, now being sent to stock¬

Noting that people sometimes buy a stock because "it has ;
been acting so well," Ed Hale, our correspondent at Vance, Sanders
& Co., observes that this is "a pretty poor way to go about making a
*

Fund

Awards will

sales contest entries.

& Co.

Whitehead, partner,

and Louis H.

Cosgrove,

jjuniv-o.

$38 Million
-

Arthur Wiesenberger

ner,

Thursday, July 12, 1956

dustry-were

Reports Assets of

Management" maga¬

zine, Arthur J. C. Underhill,

metal

Edi¬

John H. Caldwell, Managing

first

ma¬

months,

six

and

new

investments in the fund amounted
to $5,477,206, the highest for

any

first half year in

its 24-year his¬

tory^ This compared with $3,348,426 in the first half of 1955.
est

changes

Larg¬

industry holdings
holders. This represents a rise of in7 the-first six months were: In¬
0'o^.As an illustration of how such a plan may work out; he shows
creases
oil
4.8% f
machinery
10.5% over:", the ? net asset value
figures based on the assumption that on Jan. 1, 1956 one investor v'
2.1%, railroad 1.8%, building 1.2%.
per share r of; $17.40 on Nov. 30,'
decided that he would buy $1,000 each of the 15 stocks in the
Decreases—steel 3.4%; automobile
1955.Over the same period the
Dow-Jones index' of 30 industrial stocks which had registered
Toronto Stock Exchange index of 2.8%, finance 1.6%, gas and gas
the best market^ performance iri 1955, While another purchased J
utility 1.3%;.' •*;.
"•
industrial stocks rose 4.1%.
'
"
$1,000 each of the 15 stocks with the poorest performance last yea*.
;. The three principal investments
Combined assets - of the^ three
The results thus far in 1956 show that the stocks of the latter
selections.''

investment

;

•

J'"' V

-r-

Investing for Income?-

Slock Series

•

May 31 wer6v funds—Axe-Houghfon
Fund
A,
Axe-Houghton Fund B and.Axeindustry, Houghton
Stock
Fund
were
and
the
oil
and. gas- industry.: $118,208,967 on June 30 as
against
About $8,091,359 was invested in $116,888,702
on
March
31
and
eight companies mining or proces¬ $108,538,757 on Dec. 31, 1955. Axe
sing non-ferrous rhetals in Canada.! Science & Electronics
Corpora¬

superficiality

stocks selected for their income

measure

of investment values.

which

that

observation

"Our

About

five

professional investors

If intrinsic value factors,

favorable, one can assume that a stock represents relatively <
sound value; if they are unfavorable, one can assume the reverse.
In either case market action will follow the direction in which

Research

Corporation

Established 1930

Broadway, New York 5, New York

120

J 120

intrinsic value factors point.
of

"One

investing

—

invested in

was

making pulp and
$6,824,280 was in¬

Portfolio
six

appraising

purchases

during

the

months'

cannot

the managers

Mac

and because even the most careful analysis

guarantee accurate appraisal, professional investors such as
of investment companies diversify investments over
broad list of securities, thus enlisting the aid of the law: of aver¬

Lehman

Corp.

increase of $4,215,-

Net

assets, \ after /deducting
$5,993,000 preferred stock, were

Sets Records

equal to $33.16 per share of com¬
mon
.•

.....

asset value of $52.40 per

A net

wmmmsimm

revealed in Lehman Corporation's

Prospectus from
your
or

investment dealer

ended June 30,

PHILADELPHIA 3, PA.

singled
out
for
particular
mention as
being the major contributing sum

■

total

the

DEVELOPMENT

dividend

year

in the cor-i

the highest

$3.79,

net

value

asset

corporation

its

stock¬

Final

Quarter Invest¬

ment

Year

12<f per share

Capital

Gain—_——26tf
Payable
to

August

stockholders

record

July

corresponding figures at
of
the
previous fiscal

end

7.0,

per share

1956

showed a total dividend of
per share, a net asset value
of $224,250,663, and a per share
value of $48.47.

1956

amounted

investments

just
compared to $7,040,172 for
the
previous fiscal year ended
June 30, 1955.
1
;*•
year

ended

unrealized

amounted to $145,429,725

30,

1956,

253

ofC anada,JLtcL

appreciation

for the

Common

94.6%

fully managed Canadian
Investment Company
seeking
long-term CAPITAL GROWTH

constituted

stocks

net

value

asset

TAX BENEFITS

under Canadian Laws

States Governments
items

4.3%.

At the

net

asset value

Governments
totaled

the

net cash

representing

time last year,

same

stocks

with United

and

$10,426,121

common

June

year.

end of the fiscal year

increase of $17,636,-

made

91%

and United States

and

net

$16,784,575,

cash

items

representing

7.5 per cent.

Company

Congress Street, Boston 9, Mass.
Please send

me
prospectus describing
Keystone Fund of Canada, Ltd.

D-166

plan,
the stockholders,
$417,880.

Personal
Harry

ap¬

net

former

Commission

the

Securities

and

ad¬

and

ministrator of the Reconstruction
Finance

Corporation,

has

been

director of Axe Science

bonds, were $7,527,085. Purchases
for portfolio were $3,472,427.'
American

Investors

Company, Inc., reports that

June

were

30,

1956

net

assets

1956

first

half

this

records set in

net

and

assets

net

the
a

share at the

last year.

In addition to
gain in asset value per share

capital

cents

gain

was

distribution

made in

January

resented
ment

year

At mid-year

pany

with

pared

bonds

10.5%, and
The

had investments in 102

for

the eight
29, compared
in
the corres¬

were

have

com-

June

year.

Commonwealth Stock
sets

crossed

the

Fund

is under the

1952,

same

man¬

the $115-million Com¬

monwealth

Investment Company,

Managed Funds assets for
11
classes of mutual fund shares in¬

the
Net

by $3.76 million—to $44.8
during the six-month
ended May 31, according
—

firm's

semi-annual

proceeds

from

the

report.
sale

replace him on the
advisory board of the atomic age
-

--!

Mr.

McDonald, for many years
prominent Detroit financier and

community

leader

INVESTMENT
A balanced mutual fund

former

and

Chairman

of
the Michigan
Un¬
employment Compensation Com¬
mission, left the SEC in 1952 when

was

chosen

following

head

the

over

300

COMPANY

investing in

bonds, preferred and

stocks selected to

common

provide reasonable current

income with conservation and the

RFC

of long-term growth of

Congressional investi¬

possibility

principal.

gation of the Government lending
agency.
He joined the advisory
board

Science

Axe

last

sum¬

>rj

mer.

also

was

Science

tion should

reported

that

STOCK

Axe

Electronics
Corpora¬
officially join the Axe

A mutual fund
common

family of open-end mutual funds
its

corporation
in

proved
first

that

The

not

annual

shares
as

shareholders

meeting

continuous

long-term growth of income and principal.

are

ap¬

the

May

2, in¬
offering of

Manoged and Distributed by NORTH
AMERICAN SECURITIES COMPANY
Russ Building • San Francisco
4, California
^

shares and their withdrawal from

trading on
Exchange.

the

investing in diversified

stocks of well-established

open-end

new

FUND

companies selected for the possibility of

present,

change-over,

by
a

redeemable but the

are

American

Stock

Wholesale Inprcsentattves:

as¬

million

mark, S. Waldo Coleman, Pres¬
ident, announced. Total net as¬
sets on Friday, June 29 stood al
$2,002,103. The fund, established

period

com¬

ago.

year

$1,400,000 against $4,-

been named to

investment company.

S11.96, com¬
the;end of

Oct. 31 last.

$39,800,000
ponding period a

million

0.3%.

$20,900,000

creased

cash

29 amounting
compared with

$11.54

May and $10.44

stocks rep¬

and

June

June 29 amounted to

of assets, govern¬

common

89.2%

bonds

corporate

ago.

$123,300,000 on May 31 and $99,000,000 at the close of the last

agement

Outstanding shares at 6,011,801
held by 15,132 holders, compared
4,906,669 shares and 12,408
a

Cor¬

fiscal year on Oct. 31, 1955.
:
Net asset value per share

1956.

with

holders

Management

$128,20G\000,

000,000 last

shareholders,

share,
or $9.39

u n

poration of Chicago, reports total

sales

equal to $9.77
compared with $46,128,-

of June

managed by Tele¬

with

year

total

and

months ended June

of $58,764,720

President.

fund

Government

vision

Edward P. Rubin, President, re¬
ported total net assets at June 30,

Electronics Corporation, it was
announced by Mrs. Ruth H. Axe,

sold.

States

Co.-

Gross sales of the fund's shares

Shares, Inc.

outstanding

number

Progress

McDonald,

Chairman

General

the

new

assets,

American

881

volves

State

retirement

in about three weeks.

jdddreu

Cty

with

During the fourth quarter of
the corporation's fiscal year, sales
of portfolio
securities, exclusive
United

Selected

closed

was

Al-

Television-Electronics
sponsored

totaled

interest and royalties for
period, after expenses and
and
municipal taxes, was
$527,884; after payment of $110,003

proved
income

Zel-

included

ritt Gordon Mines, Simpson's, and
Products.
'

the

for past service benefits under the

At $128 Million;

Westeel

dends,

employees'

shares of

was

$12,698,023 for the fiscal

Name

months

500

Steel, Bujlding Products,
Stores, Loblaw Groce¬
terias
"A," Mclntyre Porcupine
Mines, Merrill Petroleums, Sher-

Net income from divi¬

the 12
At
the
same
time, Mrs. Axe
month
period 'amounted to $5,- announced that Robert F.
Nelson,
386,764 compared with $4,608,633 President of the Modern Engrav¬
for last year. Net realized profit
ing &
Machine
Company,
has

eystoneFund

the

six

the

and

Eliminations

Dominion

state

elected

Net

for

$1,770,077.

Corp., 1,000
Morgan & Co.,

Henry

l,goma

se¬

Net ordinary income for

The Keystone

curities

Worts,

ler's.

compared- with
March
31, * 1956 and
Dec. 31, 1955. ^ A

profit from the sale of

year

and certain

Net

$2.46

Income

End

The

the

$30.82

Exchange

holders.

FUND, INC.

the 1,800,220 shares

was

$242,435,920,
which
represented;
the highest net asset value ever
contained in an annual report by
the

MUTUAL

fiscal

was

poration's 27-year history.
Total

ATOMIC

The $2.51 V2

1956.

dividend

per

DIVIDEND NOTICE

report for the fiscal year

annual

$34.77

de¬

at the fiscal year-end was

clared

CFC

dividend

per

the

deduction

after

$2.51 Vz

stock

outstanding

Acceptance
of

500 shares of Page-Hersey Tubes,
400 shares of Walker Gooderham

for the six months.

783

Axe

fund, reported its asset

was

TV-Fund Assets

Oils, „1,692

dustrial

$65,698,305,

value

shares of Home
Oil "A," 4,000 ; shares of Husky
Oil & Refining, 800 shares of In¬

toward the achievement of satisfactory investment results."

ages

fourth E. W.

managed

May 31.

period included 7,300
Calgary & Edmonton,
7,800 shares of Consolidated Mic

these factors correctly;

tion;

...

dian Fund's assets at

•;

difficulties

chief

the

About

paper

$9.78 a share on June
vested in 14 Canadian companies
30 compared with $9.79 on March
engaged in some phase of oil and/ ' 31 and $9.54 on Dec. 31, 1955. Its
or natural gas production and dis¬
total assets on June 30 were
$15,tribution. These three investments
284,628, making a total of $133,represented about 60% of Cana¬ 493,595 for all four funds. 5:

far less /

are

Securities

National

$7,742,161

companies

paper.

stock has done' than with the basic facts

indicative of intrinsic value.

are

figures

performance

market

short-term

concerned with 'what

or:

not too startling

are

mining indus¬

try, the pulp and

period of time is short; they do serve to highlight the

and .the

possibilities. Prospectus and
other information may be ob¬
tained from your investment

"while the results

Ed Hale comments that

supervised investment in a di¬
versified group of preferred

the metals and

who bought

and stock dividends.

mutual fund providing a

dealer

of Canadian Fund

those of the in-

value of $15,071 whereas

total

the issues that had "acted well" in 1955 are
worth only $14,357.
The figure* do not take into account any
items of commissions but adjustment was made for stock splits

National Preferred

have

investor
vestor

]•

Prospectuses available from Investment Dealers or the above
"Investment Company Managers since 1925" ^

Bosfort«Chicag6»DalIai-LosAngeles»NewYorieWashington,D.C.

Volume

Number 5550

184

The Commercial and Financial Chronicle

(211)
additional

old

shares to

shareholders

amounted

during

$4.14

and

the

new

portunity to look
over
several
large offerings next week.

period

million

and,

after distribution of $1.78 million

Distributions

from

during the previous period.
income

distributions

also

gain

net

rose

since

Nov.

Managed Funds Paper, Pe¬
troleum and Electric Shares. Pam¬
per Shares assets were up $1.36
million and Petroleum and Elec¬
tric

each

recorded

gains

million.

First

West

Just.

President; of

Television

definitely to await;better market
conditions, American Telephone &
Telegraph Co., Went ahead with
its $250 million undertaking.
with

■-

for

the

brought out

Vice-

102.75

for

3%s at a price of
indicated yield of

3.73%.

34-year debentures

thejuijusual

Because of

drew

bids

tronics

writing groups,

that

Inc.,

announced
arrangements had

the

the funds shares

West

Germany.
The fund becomes the first U. S.
in

this

nouncement

country.
made

held

conference

was

The

here

an¬

press

which

Mr. Just reported that "Television

Electronics Fund would shortly,
in cooperation with leading West
German
banks,"
distribute
its
shares
to
the
German-. investor
who has

terest

formed

already shown great in¬
the
various : recently

German investment

com¬

panies."

■

;

This

new
development on the
of i Television
Electronics
Fund follows similar steps taken
in 1951 in Holland with the as¬

part

sistance of the Amsterdam

bank¬

ing firm cf Labouchere & Cie
later

propor¬

the

;

1955

Nonly two under¬
flic: winning ten¬

der of 102.1199

being separated by
bond |rom the bid of

the runner-up.

the bidding syn¬
dicates just about embraced the
country's entire investment bank¬
ing capital, the successful aggre¬
gation consisting of a total of 242
houses and firms reaching across

and

Switzerland

the

qountry.

-Early

...

indicated

reports

The

distributed

and

funds
in

England

are

Belgium,

that

ar¬

fairlyv active on * the
buying side, with early inquiries
were

sufficient

thirds

the

top

take

about two-

"p.p|" set aside for

underwrites.

Major insurancaicompariies still
weqo -reported
showing a bit of

but market

reluctance,
seemed

that

feel

observers

the

response

from other sectiohSLof the
world

sthMthe

would

investor

life

panies into a buying mood
went along.
'

com¬

time
,

Helped by- Events

•

It probably wohld not be going
far to suggest that the with¬

too

big tax-exempts

which had been scheduled for sale

A. C. Allyn Co. Adds

;

(Special to The Financial Chronicle)

BOSTON, Mass.
White has

by competitive bidding exerted a
helpful influence 'on the market
for the

Christopher

—

been

added

the

The

Telephone|issue.

-• '
,
Thruway

York State

New

staff of A. C. Allyn and Company,

Authority's $50 million of stateguaranteed bonds which were set

Incorporated,

back

Federal

Street.

for

New

With Hamilton Manage'mt

Messina

Mass.

—

Lucian

decision

with' Hamilton

now

Management Corporation, 127 Fre¬
mont Street..
" V
;
! "*

Planning

(Special to The Financial Chronicle)

;

were

Jerome S. Werther have

connected

come

with

be¬

Investors

Planning
Corporation
of - New
.England Inc., 63 Devonshire St. -

C. Morton Adds

$25 million
were cred¬
complexion
where

actions
free

less had

Jthese agencies
which
investors doubt¬

utf

funds,

accumulated against their

flotations, and turned at least a
part of the total
^toward ATT's
debentures.

•

business

who's

keeps
with the

them

has

Keenan

—

become

wntred

affiliated

with B. C. Morton & Co., 131 State
Street.

SITUATION WANTED

closely

in~«4&Lich

bond

(Special to The Financial Chronicle)

BOSTON, Mass.

market

aihrtfj^the intentions

corporate borrow¬
confident! that this Fall

prospective
are

ers

will witness

pickup in the entry
of industry into„the new capital
a

and

set

Friday for busy munici¬

perience

ex¬

with

of-the

clearing away

could,

the stage

sion

15 years'

K628, Commercial &

Looking
fornia

market lost all the ground

last

gained in two months, and in two

Inc.

months it had retreated to

the

reports

period
& Co.

same

Stuart

its

annual

not

Mid-Year

Survey of the Tax-Exempt Bond
Market.
• '■/
over

for

down

normal

huge

marketed,

pointed
as

"In

time, Halsey, Stuart
out that the outlook for
recent

1956

Ten

midst

its

year

bids

the

The

broad and active."
All

sections

the

could

exceed

that

market continues

1955

on an

even

said the survey. The Federal

experts

quickly

Board

clared

This

($.07)

Directors

dividend

per

payable

de¬

cents

common

share of

stock

August

has

seven

1956

31,

stockholders of record July 31,1956.
Robert J. Wear den, President
TEXAS
2514

TOY

McKinney

COMPANY
Houston, Texas

Ave.,

4%,

GOULD-NATIONAL

BATTERIES, INC.
SAINT PAUL,

MINNESOTA

Manufacturers of Automotive
;

that
been

;

tax

exemption

available

■j

has

♦

.*•

and Industrial Batteries

the

with Paine, Webber, Jackson
Curtis, 209 South La Salle St.

may

become

program

not be

quick

state-level bond

ipated.

source

law,

volume

"the need

However,

schools continues unabated

theless,
issues

supply

schools

for

crease."

bonus

the

and

bonds

Korean

noted.

in¬

Straus,

soldiers'

South

Public power

notably

the

along

and

the

west, will need
lions, it said.

has

vak

for approval
and at least three turnpike issues
are
expected in 1956, the survey
are

shareholders
1956.

June 11,

;

(Special to The Financial Chronicle)

CHICAGO,

new

appears

share on
payable

1956

Joins Straus Blosser

for

never¬

of 42Vii per

President

antic¬

dividend

A. H. DAGGETT

are

school

today
a

of record July 20,

CHICAGO, 111. — Richard P.
Grant and William K. Palmer III

expected and should the Federal

Directors

August 1, to

(Special to The Financial Chronicle)

program
will not generate
the $50 billion of bonds originally

The Board of

Common Stock,

With Paine, Webber Co.

keel,
high¬

' DIVIDEND NOTICE
declared

such

good terms," it commented.

way

111.—Lawrence

become

Blosser
La

the

No¬
with

McDowell, ,39
Street, members

Salle

New

affiliated

York

Midwest

and

Stock Exchanges.

development,
St.

Lawrence

Pacific

many

Irving Weis Adds

North¬

(Special to The Financial Chronicle)

mil¬

CHICAGO, 111.—Arthur F. Cadkin

Tax-exempt bond prices went
through a sinking spell in March
and April when the Federal Re¬
serve tightened the money supply

has

been

added

the

staff

anti-inflation move,

early

Jackson
v

end

The
in

the

averages,

first

Weis

Co.,

Boulevard.
1 y

o u s

with

141

was

ON COMMON STOCK

pre-

Hornblower

Board

The

Consumers

With Myrl D. Maynard
(Special to The Financial Chronicle)

FREEPORT, 111.—Mark B. Smith
has

quarter."

risen

become

affiliated

Maynard

Building.

Co.,

was

with

State

Myrl
Bank

DIVIDEND

Directors

Company

quarterly dividend of
per share on the
outstanding Common Stock,
payable August 20, 1956 to
share owners of record July
20, 1956.
55

cents

formerly with

DIVIDEND ON

S. A. Sandeen & Co. of Rockford

January and February, turned

Power

authorized the payment

has

"feeling

which had

DIVIDEND NO. 174

West

Weeks.

somewhat better than it expected
at

May the market had re¬
a good technical
position

and it closed the first half

Irving

but by

PREFERRED STOCK

The Board of Directors also

NOTICE!

of
WORLD-WIDE BANKING

the

DIVIDEND

NOTICE

authorized
a

the

payment

quarterly dividend
Preferred

Stock

fol¬

lows, payable October 1,1956
to

The Chase
clared
the

re¬

help

there is

plans

issuers, investors will have

the

an op-

]Vfanhattan Rank has de¬

owners

record

THE

12,000,000

Chase
Manhattan
*

1956

CUSS

PER SHARE

$4.50

$1.12 </*

capital

$4.52

$1.13

payable August 15,

$4.16

$1.04

dividend of 55c
per

stock of the Rank,
■CHARTERED 1799"'

program.

present

Treasure*

September 7, 1956.

bonds to

course,

and

DIVIDEND
The

to explain these
novice
can
see

seldom

tax-exempt
list have issues in the making and
total new financing for the year

Co.; for example,
plans tp> market a new

President

interest

brokers went

differences,

the

observed,-

Large Issues Ahead
Provided

closs

ahead, 'Southern Cali¬

Sept. 5.

the

STRAUSS

TEXAS TOY

ma¬

survey noted that current
interest rates, provide an interest¬

again halts the proces¬
secondary market is

sion.

change

Vice

market—

directions.

construction

this squeeze,
increased and

March

record

the

still closer in

were

1956.

level

interesting features

rates

12,

^of automobile

$40 million issue of first and
finance

July

OTTO W.

ing
comparison:
brokers
loans,
4%; 90-day U. S. Government
bills, 2.409%; top notch 20-year
municipals, 2.25%; long-term gov¬
"The near term is full of issues
ernments, 3%; 30-year best grade
already
scheduled
and
bidding taxable
public
utility
bonds,
groups
have
been
formed
for
3.50%; a recently offered 50-year
many which will come along in
tax
exempt
municipal
utility
large volume unless some outside
revenue bond, 3.90%.
"Leaving it
influence
than

stockholders

The

the tax-exempt
in a happier
really expected
to enjoy and looks forward to a
busy summer," the company said.
to

seems

1956 to
business

short-term

tax-exempt

end

loans

dividend of twenty-eight cents
share on all the outstanding stock of
Company has been declared payable July

where it still is."

mid-yeaf,

passes

the

good

"As

year.

26,

gains offered to him all the time.

same

any

the

the short-term buyer has real bar¬

were

reserve

the final months of 1956 is

the

today's

ENGINEERING,

per

usual, the shorter ma¬
tax-exempt bonds lost

ground.

one

first six months.
At the

Since

the

NOTICES

it had

yield to the 20-year bonds.

$3.7 billion in the

some

most

1953.
on

turities approached

volume

than $6% billion

the

which, however, does not threat¬
en the record year 1954."
In that
year

turities

to have settled

seems

was

market,

are

awhile," said the report.

"The market

since

seen

pressure

"The days of record volume

Edison

has set up

Financial Chronicle, 25 Park

$2.8

strike,

steel

It expects to put the bonds up for

Place, New York 7, N. Y.

was

I. du Pont

Dividend No. 211

quickly with the tightening of the
money market. "In two weeks the

for renewed expanr

in many

funding mortgage
leading bouses.
Box

Mr. Gordon

quarterly

has

inventories

pal executive.

Company, 317 Sev¬

Co.

first

market.
Settlement

Girl

Messing

INC.

in the

Halsey,

year,

gained

\ Calendar l&iilding

Those

•

billion

River

montHs|back.

institutional

Jts
naturally

defer

some

tended
some

BOSTON, Mass.—David Slocum

and

the

yields, and consequently borrow¬
ing costs, are higher than they
The

Two With Inv.

and

the changed
municipal.? market

the

offering

Jersey Highway Authority's

ited

BOSTON,

later

undertaking

(Special to The Financial Chronicle)

.•

Rice &

COMBUSTION

compared with

1956,

parts

drawal of the two

of tax-exempt

marketed

were

situation

France

■

Municipal Market in Balance of 1958

About $3 billion

market

also

under,-similar

rangements.

enty-first Street.

six months compared to a year ago. Notes the
days of record volume have not reappeared as yet.

pension funds and' their counter¬

through MM. Hentsch & Cie, Ge¬
neva.

iel F.

its plans.

(28c)

bonds

Between them

mutual fund whose shares will be
sold

bu§ipess

from

bqen completed for the distribu¬ only $6.81
tion

Wesley

rent strike will not interfere with

nego¬

rise in the past

half

view, judging by' reports of de¬

ydsterday

and

have become affiliated with Dan¬

favorable outlook for final month of 1956, and the slight

our

bonds

tions

cur¬

Halsey, Stuart & Co. reports total new tax-exempt bond
- financing for the year "could exceed that of 1955" in pointing

satisfac¬

apparently

Management Corp., sponsors of
the $130 million Television Elec¬
Funds

the

DIVIDEND

mand

Germany

Executive

company has stated that

million

Outlook for
Although two major tax-exempt
projects of substantial proportions
were
taken off the current list
during the week and set back in¬

tory results, from jL market point

Germany

FRANKFORT,
—Paul

$60

MIAMI BEACH, Fla.—Albert E.
Gordon

formerly with Francis

In West

debentures through direct
tiation with its bankers.

And

TV-Fund

issue

planned expansion. The

—

were

of about $1

market

assets

to finance

Wednesday,

Net

by $65,910.
v
A
>
'
: M
Outstanding contributors to the
„

issue of

Superior Oil Co. of California will

net capital
higher than

$371,000

were

$40 million first

mortgage

bonds.

Daniel Rice Adds
(Special to The Financial Chronicle)

subscription books for an
$50 million of new bonds

will open bids for

in, realized capital gains, unreal¬
ized appreciation at May 31 came
to $7.25 million.
gains

And on Thursday, Inland Steel
Co., is slated, through its bankers,
to open

Tuesday Union Electric Co.

the

holders of record at the close

of business

CONSUMERS POWER COMPANY

July 13, 1956.

The transfer hooks will not be closed
in
hi

connection
luiuici i imi

with

the

payment

Scwbtf OtttdfattWicfaQdH
MORTIMER J. PALMER

BANK

JACKSON, MICHIGAN

Vice President

The Commercial and Financial Chronicle ;;

4ft

Thursday, July 12, 195S

(212)

White

BUSINESS BUZZ

House

lunches

Patronage

on.

BehimJ-lhe-Scene InterpreU&ms

them

gave

groups.

;

long

elected

politicians must be

obtaining
votes,
patronage will, for good or ill,
remain
important to Congres¬
sional
cooperation
with
the

X "IX

MM. I HI'

Nation's Capital

from the

•.

and

large

/White House.

•

Donovan quotes the Post>-^i»i/master General as observing in

Cabinet meeting that a little
giving out jobs should be shared.'
with the Republican National

one

and

observers

careful

side

conservative

have

direc¬

reported

reading. So the widely

of Sherman Adams' load of

driven home by its

is only

tion

crack from Dono¬
van's book that the President was
Eisenhower

Committee. He quotes Chairman
Leonard Hall of that Committee

"such extremes"
of the "powerful right wing" of
the
Republican party that he
fed up with

the
been

.setting down as the main trends
and thinking of the Adminis¬
tration which took office Jan.

in the "liberal"

Its impact

WASHINGTON, D. C.—Robt,
J.
Donovan's
book
on
the
President and the Eisenhower
Administration is essentially a
confirmation of what critical

(1) In six-months only six
Republicans in Congress- were'

pondered in the summer of 1953
starting a new party, is only a ;
dramatic or climactic manifesta-V;
26. 1953 ("Eisenhower, the In-'
/ tion 6f the underlying White,'
«ide
Story," Harper \'& Bros.,
House thesis.
•
;•,
■//c;',,'/
New York, $4.95).
-

;

"indebted" to the White House
for appointments they had rec-r

;

•

little

adds

book

This

tacular

spec¬

The Budget

about

knowledge

new

•

principles

reaching

out was that in

point

Administration to early
1956. Since it is not history,
there are obviously large
in¬
formational gaps. It is essen¬

Mr.r

-The

Beneficiary?—Oh

previously

jparties to inspire "biographies"
to be issued about their men

Taft

quoted the President as feeling ;

superior to the customary

biography,
adulation,

campaign

election

its

syrupy

concentrates

and

giving

especially selected to sup-

1>pok.

The thesis is that Eisenhower

that term has
come to be corrupted in the last
two decades. In fact, the most
is

"liberal,"

pronounced feature of this book
thesis. It runs through¬

radical"
revision in the'fiscal objectives

out

entire

the

and

book,

tended

book.

The

Admin¬

Eisenhower
on

charges

the
is

Donovan

immensely

off

"liberal."
the

Since

liitherto

have)

could' not
without

•

revelations,

secret

the

written

been

whole-hearted

co¬

operation of the White House, it
is
equally
obvious
that
the
White

House

basic

its

sees

political problem in 1956, the
problem of making Eisenhower
out
to
be
a
thorough-going
"liberal."

White
files"

would

'. correspondents' note).

Donovan

Mr.

Administration,

re-election,
must
somehow to
placate the

to
try

con¬

Republicans.

servative

can

party

never

even
to

seem

Republi¬

they

could

win Presidential

how

color

por¬

trait of Lincoln.
For

those

who

j "One

the

that Eisenhower is
this

book

"must"

doubts

"liberal,"
reading.

confidential

policy

Senate Bank-'
<

session

achieve

their
a

with

the

attitude

thing.; He com¬

AURORA, 111.—F. Robert Vier¬

along

President,
President

ing,

with

their

•

Company,

National

Vierling

Mr.

associated

has; become

Bank

Inc.V

Build¬

formerly

was

with H. M. Byllesby & Company,

themselves,, Inc.,

thought

Opposition, and why didn't

Blair

Incorporated,

Co.;

C. Allyn & Company, Inc.

and A.

own

especially when the
brought

them

the

early

months

in office,"

TRADING MARKETS

Botany Mills
A. S.

Donovan,

balancing

"came

the

when

budget

Fashion Park

his

Morgan Engineering

Carl Marks
FOREIGN

SECURITIES

50 BROAD STREET

TEL:

HANOVER 2-0050

re¬

of those requirements
which the President deemed es¬
to

national

Mills

Geo. E. Keith Co.

security."

•

Co. Inc.

Riverside Cement

Sightmaster Corp.

SPECIALISTS

& CO.

NEW YORK 4, N. Y.
TELETYPE NY

1-971

vestment

Securities
Square, Boston 9, Mass.
^

10 Post Office

gardless
sential

Campbell Co. Com.

Indian Head

stated

Telephone

(Special to The Financial-Chronicle)

Merchants

they

naively wonders
President why
Mr.

Mr. Donovan

Vierling With Schwanz

Republican party were one and

still

pretation -from the nation's Capital
and may or may not coincide with
the "Chronicle's" own views.}
'1

Jr.

gress

budget not before four years.

Schwanz

the

•

[This column is intended to re¬
flect the "behind the scene" inter¬

with

balanced

around

Mr. Eisenhower that he and the

sole

get

ling,

same

routine
Adams

Presi¬

plains that Republicans in Con-

inten¬

weeks

several

to it.

members

policy. It is eloquent

inferential

the

(2)

took

because

query

the

subsequently in the
"Chronicle") by three leading
Administration officials in ex¬
ecutive

the

ex--

then

and

Adams,

Congressional lieutenants could

participate

should

Congress

in making

the

previous December. He was not'
member of the

place, of

the telephone

National Co.

jolts

sharpest

Eisenhower received during

for

have

fiscal

taking

thought himself,

comprehended fully and finally
the zeal of many Republicans

Eisenhower
a

its

dent's realization that

access

"middle of the roader" the

nominations—is all but absent.
say

elo-

Con¬
They
Presi¬

pervasive is Adams' power
one of Eisenhower's main

These

Donovan

does

sence

reported

Mr.

attempted to paint

President's

have

Donovan, obviously
White House think¬
ing, - repeatedly referred to as
"the
extreme
right wing,"
a
definition
which, incidentally,
sheds some light on what kind
President

the

not

book

the

not get an answer on

its disclosure, by ab-'
of mentioning incidents of

reflecting

did

Donovan's

through

talk to

that

the Republicans
should play a part
in formulating. It should not be
sent
down
from
above. Both
should share in its formulation.
Mr.

even

•

report

of
(1)

only if " the latter approves.

which

quent in

get

cept

that Repub-

people Mr.

J1953,

who, until Jan. 20,
probably dominated the

Taft

to" the

tions

relates

;

has

his relations with the con¬

servatives

file

Mr.

ing Committee, which was told
on Feb. 27, 1953 (as this column

Congress

With

Relations

the

heard of the President's
change
of heart
(so
far
as
Taft officially knew) was at that
meeting on April 30.
;

$8 bil¬
billion,

over

obtain

and

$66

Eisenhower

from

the '

doesn't

the Hill say.

dent

Secretary Humphrey and Mr.
Eisenhower. Party policy is a

thing

that

members

many
on

can't

;

"whipping boy."

Donovan

Mr.

in Congress

seemingly bewildered and hurt
in feelings Mr. Eisenhower was

having
some
surety as to the directions to be
taken by the Donovan book.
By contrast, the idea that, the

rank

over

around

noted

tures,

memo

subsequently in

something

lion .to

neither

the

and

wants

.view

the

Because of

what

as
,

gress

Republicans, just as much

also

•

President's

the

out

become

licans who sat in Congress, were

President

author.

relations with Republicans

was

the

wishes,

V;t.;

President

the

$60 billion in four years. (From
fiscal 1953 to fiscal 1956 the cut
will

had

promise the latter would favor
drastically-reduced
expendi-

said his goal
cut Federal spending to

■

President

\ / '•:*/

carries

of Eisen¬

nowhere in Mr. Donovan's
.book, and what he said is one
of the keys to the President's
poor

Mr.

Adams/
them to
he, Adams, would pick

man.

what

disappointment

policy

deficit

pears

or,
if
so,
Washington.'
The first Senator Taft, who had

speech

the

without

Eisenhower

was

Cabinet

two

meeting in which Mr.
Taft
"blew
up", he told the
President something which ap¬

heeded seriously in

slowly

the

arrant

in Congress. ; '';" " ;■:•? ;; ■
;:';
What Senator Taft reminded

in,
the
campaign made a public:
speech saying
it would take,
four years to reduce spending to
$60 billion, said Donovan, this;
was

that

suppose

House

;

the

public

'
the

While

extracted

and

wreck

ade¬

Nevertheless, the Assistant to
the
President merely knows

At this

the budget for

to balance

four years.

"bare

would

nonsense

The President

its

with

book,

come

con¬

his

the

hower.

riot

did

Administration

mean

stop before turning
right direction," the
President • was
quoted as in¬
structing the speech writer.'
-

the
Mr.

''liberals."

cerned to show that Eisenhower
is in fact,

avoid

the defensive

istration feels

against

Democratic

■

April 30,1953, at a meeting of
legislative leaders and mem-"
bers
of
the
Cabinet, Senator *
Taft "blew up" when he found
the

;

truck

heavy

shocked the President was when

ex¬

only

taking
time.

;

racing
down an icy hill, brakes must
be lightly and expertly applied
"Like

the main story of the

period,

short step at a

overwhelming

this

fact,

well

slowly,
an

over

progress

book

by reporting the

that:

agree or

the

not in Donovan's book), as

was

Mr. Donovan then relates how

will

objectives

new

making

.filled Bill

thesis

these

proceed cautiously and

per¬

meates its almost every page.

Taft Shocks President

'(italics supplied) of the gov-'
ernment,. but
"our
economic
machinery is so delicately bal¬
anced that the accomplishment

is that

•,

said Donovan, ordered

told the President, although this

immediate and

"an

be
'

been

V'/'

■..

;...

pective-appointee.

The anger was

small part to
the fact that Mr. Taft was not
consulted
in
advance
(as
he

aids, etc.,
that mili¬

angry.

was

probably due in

spending should only be
to a level that Eisenhower ;

thought best.

ghost-writer inr
which, respecting
paragraphs on fiscal affairs in
the
forthcoming State of the
Union message, Said there would
his

hand

the

thesis

central

the

l»ort

structions

relatively large dose of informa¬
tion

tary

1952, three months later, ac- !
cording to Mr.
Donovan, the
President
submitted
in
long- -

pre¬
"

lacking

could not be cut, and

December, 1

Nevertheless

vastly

being

appearance

Budget

veterans'

subsidies,

..i;

Instructions

had

author

the

has

however,

book,

van

vigorously as Mr. ^
for the President's

cut

the

before

months

six

State

had

Secretaries disagreed on a pros¬
The

Presidential election. The Dono¬

the

of decision. He il¬

this

incident

justify him, in his own personal

election.

•'.." \

Donovan's

lustrated

integrity, in going out and cam¬

did,

/•

■

vast powers

IVIE the

to make

he wants

beneficiary!" "■/

tially a campaign book. It is
customary
for
both
political

paigning

quately supports the theory that
Sherman Adams has been given

recorded state¬
principles, Mr.
Taft felt he had an agreement
with Eisenhower which would

of the

five

;promoted,

Supports Adams' Power

of mutual

ment

still

were

Department and two

and

express

local

(3) Prior to the election five
State Department officials had
Four

;

failed

Donovan

Mr.

Wnat

with

met in 1952 to "'kill off' Dulles."

■r

phatically agrees with me in the 'r
proposal to reduce drastically
overall-expenses."

rounded history

■

i.;

"General Eisenhower em- >

meetings of the President
with legislative leaders.

clear

department heads. All five
appointees were Democrats.

..statements:

the

typical day he had

a
asked

party officials five appointees submitted by govern¬

;

ac-

ment

Republican Presi¬
dential candidate, and obtained
his assent to this, among other

•

This is not

then

the

been

GOP

University

Columbia

statement

posed

President, quotations, and in
(general, a wealth of material
from meetings of the Cabinet
and similar executive bodies, or

(2)- On

"V;

;

h(mes limited manifestations,
they are now afforded docu¬
mentary evidence of previously
«unrevealed statements by the

Sept.
12,, 1952, the late
Senator Taft called at Eisen¬

which had

cepted by the White House.
been

home in New York with a pro-

viously
had
to
infer
these
things from outward and some

ommended

hower's

tion. But where observers pre¬

reporting:

Teletype

HUbbard 2-1990

BS 69