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u
NIVERSITY
of michigan
ESTABLISHED 1S39
JUJ, 18 1955
Tk e
.tfWHsrunm
UMMT
Financial
Reg. U. S. P*t. Office
Volume 182
Number 5446
New York
Price
7, N. Y., Thursday, July 14, 1955
40
Cents
Copy
a
EDITORIAL
We
As
The
long talked of meeting "at the Summit"
is about to take
would
have
liked
make
to
from
the
consensus
elsewhere
world
the
impossible
has been
and
more
rational footing
from the horrors of another World
this time with atomic weapons possibly
close
climax will
effort
the
whether
so
large that
Only the future will dis¬
quite commonplace.
now
about
accomplish lasting good for
Those who follow the
or
major
1955 from setting a new
high record of national production, Dean Jacoby analyses
the factors in the present economic situation. Traces
we
course
omy
Finds as important.
(1) tax reduction; (2) enlarged
national highway program; (3) increased government
view of the American business out¬
in this statement: Only involve¬
ment in war or major industrial disputes can now pre¬
vent 1955 from setting a new record
I
of the low estate to which all such
cause
international
gatherings have fallen in the minds
of so many. They will do well also to weigh all
pertinent factors with minds freed of th^ influ¬
of
ence
observers
those
who
anything impossible for us by shouting the
"appeasement." Heaven knows that some
of the participants in these forthcoming meet¬
ings have in their record quite enough to arouse
distrust of anything they may say or do, but to
take the position that it would be naive — or
—
to
even
on
T.
An
not
sees
worker
knowledge that he is productive,
jj
paid for idleness is
the
bound to create
a
It
first
*
obvious
become
has
1955
of
half
inept mone¬
or
and
employment
States.
that
prosperity
With
on
gross
to the
national
Neil H.
Jacoby
production estimated to be running
at an annual rate of about $375 billions, unemployment
now under 4% of the civilian work force, and most eco¬
nomic curves still tilted upward, it is clear that the
the
page
the
brought full
Continued
a worker being
feeling that his
Continued
—
has
United
♦An
NOW IN REGISTRATION
suggest
factors
tary policy.
other
in
speculation,
dence,
and feels he is not a
The guilt complex of
ward of industry.
on
satisfaction
some
of
number
a
letdown during
One's vision
less distinct.
1955.
necessarily
prolongation of
overall economic
expansion, provided that our country
avoids
the dangers
of over-confi¬
contentment.
his
assure
employed
hand
of
SECURITIES
30
address
America,
of
Underwriters, dealers and investors
by Dean Jacoby before
on
page
26
the Linen Supply Association
Calif.
University of California, Los Angeles,
in cor¬
securities are afforded a complete picture of issues now registered with the SEC
undertakings in our "Securities in Registration" Section, starting on page 40.
porate
DEALERS
C. Carroll
does
27
page
Yet
of
half
is
1956
of
contempt, and while the unployed
worker
may
be
compen¬
sated under an annual wage plan,
it
last
the
breeds
sit down and talk with them
Continued
will probably be no
worker
for idleness is
dole system.
Idleness
the
merely a
pays
word
explore possible paths to greater likelihood
•
production, and both of
contingencies appear more re¬
mote that for several years.
There
Any annual wage program which
most
worse
£n the security of both.
up my
these
vital factor in maintain¬
a
sum
national
of
our
ing
al¬
make
would
is
can
look for the current year
economic balance.1 Person¬
ally, I feel a full employment pro¬
gram will provide the stimulus to
create an exciting new era that will
bring
relationship
between
em¬
ployee and employer, thereby result¬
ing
and potential
State, Municipal
'
l
§
and
in
U. S. Government,
State and
Municipal
Leader
Sells
a
EXCHANGE
Public Housing
MUNICIPAL
Analysis
j. R. WlLLISTON & CO.
ANO
DEPARTMENT
N.Y
115
OTHER
NEVy
STOCK
YORK
AND
IBB*
Beach
THE FIRST NATIONAL CITY BANK
STOCK EXCHANGE
OF NEW YORK
COMMODITY EXCHANGES
Broadway, New York 6, N.Y.
Miami
—
Rye, n.
Bonds and Notes
PORTFOLIOS"
ARE NOW AVAILABLE
ON
MEMBERS
STUDY
"TEN SAMPLE
Request
on
Agency
COPIES OF OUR
BONDS
5.4%
CBTABLI.SHEO
30 BROAD ST.,
AND
Earnings
Times
10
at
HAnover 2-3700
bank
BOND
STATE
Favored Industry
Yields
chemical
CORN
in
NEW
Securities
telephone:
—
Chicago Pneumatic Tool
Bond
Dept. Teletype: NY 1-708
DEPARTMENT
THE
Members New York Stock
Y.
BOND
REQUEST
HARRIS, UPHAM & C?
120
34
Exchange
Chase Manhattan
BROADWAY, NEW YORK 5
offices
from
BANK
coast to coast
X
Net
Active
To
Dealers,
T. L.WATSON &CO.
Maintained
and
Brokers
CANADIAN
Commission
Orders
Executed
Canadian Exchanges At
On
Bank and
COMMON
DIRECT
WIRES TO MONTREAL
AND TORONTO
Insurance Stocks
NEW YORK
FIRST
^etd/lWtAt COMPANY
Dallas
I
4, N. Y.
Goodbody & Co.
MEMBERS
bridgeport
•
perth amboy
Power Co.
Analysis
upon
request
CANADIAN DEPARTMENT
Exchange
BROADWAY
Central Maine
All
Regular Rates
Teletype NY 1-2270
50
CANADIAN
BONDS & STOCKS
SECURITIES
Members
New York Stock Exchange
Stock
Banks
1832
established
American
Markets
115
NEW
BROADWAY
NEW
YORK
YORK
STOCK
EXCHANGE
1 NORTH LA SALLE ST.
CHICAGO
<
(4) heavy plant and equipment outlays, and
(5) Free World progress.
outlays;
of the country.
I believe, and I think it has also
by many of our leading economists, that
the purchasing power of the wage
earner
and services by governments,
goods
forces in coming year:
been recognized
adequate for that purpose is vouchsafed by the
powers that be, will find their task of appraisal
easier if they bear in mind not only what might
conceivably be done in such a conference, but
also the
demand for
the
Employees (AFL)
of events during
1
business, and the public for 1956.
opinion any plan for a Guaranteed Annual Wage
will be unpopular until proven beneficial to the econ¬
two, assuming that information
Economic Advisors
industrial disputes can prevent
In my
the next week
California, Los Angeles, Calif.
of
'After asserting that only involvement in war or
President, Brotherhood of Maintenance of Way
man¬
kind.
to
University
Former Member, Council of
T. C. CARROLL
reach
to
philosophy repro¬
published next weei
number given in each issue,
away
War,
a
a
Wage
Others will be
have been obliged to limit the
starting with that of June 2.
The decision to conduct the symposium coincided with
the publication in the May 26 issue of Frank Rising's
article "Guaranteed Annual Wage: Blue Sky and Brass
Tacks."
The backlog of unpublished commentaries is
substantial and some of them are given below, while
others will be carried in subsequent issues.—EDITOR.
is
despite the black record of former postwar
world back to
.
last week, the volume of letters
received in response to the "Chronicle's" invitation for
comment on the Guaranteed Annual Wage philosophy
conferences, another attempt should be made to
start the
Annual
Guaranteed
Dean, School of Business Administration,
-
As noted in this space
and
too, for that matter,
By NEIL H. JACOBY*
contributions to the "Chronicle's" symposium
duced in this issue.
be
in this country,
more
the
on
for
States to
United
to assert that the
in
it
It is probably safe enough
They failed.
present.
Some
place. Certain influential figures
representatives
that
Another Group o( Comments Some Readings of Ouv
Economic Barometer
On Guaranteed Annual Wage
Do?u?ao7f Securities
Gepokatio?i
40 Exchange
Place, New York 5, N.Y.
IRAHAUPT &CO.
York Stock Exchange
Principal Exchangee
Members New
and
other
111 Broadway,
WOrth 4-6000
Teletype NY
1-702-3
WHitehall 4-8161
Boston
N. Y. 6
Teletype NY 1-2708
Telephone:
Enterprise 1820
1
I
The Commercial and Financial Chronicle...
The
Banks, Brokers, Dealers only
Fur
Bankers Trust
Security I Like Best
A continuous forum in which, each
participate and give their
Dan River Mills
Haile Mines
reasons
they to be regarded,
are
as an
McLaughlin, Cryan & Co.,
Members N. Y.
Stock Exchange and other
Long-Bell Lumber of Mo.
principal Exchanges
National Gas & Oil
L.
F.
Tennessee Gas Transmission
Jacobs
a
Travelers Insurance of Hartford
& Power
Oil
metal
modest
Exchange
Teletype NY 1-40
private'Wires to Principal Cities
and
how"—the
Rights & Scrip
company
Members
Stock Exchange
York
BROADWAY, NEW YORK 5
120
TEL. REctor
be
can
ex¬
$500 million, reflecting the con¬
fidence
and
satisfaction of the
Federal
In
year
one
makers
and
of
the
Government, who have
principal customers.
the
first
half
of
its
acquisition of
1955, the company completed
of the most extensive re-tool-
such
earning
American Furniture
Dan River Mills
ing expansion of the market for
automobile,
commensurate with
the
uninterrupted prosperity of
this
Life Insurance Co. of Va.
era
in
the
United
States
of
Currently,
is
substantial progress
the acquisition
being made in
and
"Jacobs"
into
the
of
iielas
acknowledge growth
particularly
quisition
Lynchburg, Va.
diversification
program
de¬
I
vised by the new
TWXLY77
NATIONAL BANK
ol INDIA. LIMITED
Bankers
the
to
Government
in
Kenya
•
Colony and Uganda
26
Bishopsgate,
London, E. C. 2.
Office:
Head
*
West
End
(London)
Branch:
13, St. James's Square, S. W. 1.
Branches In India, Pakistan, Ceylon,
Burma, Aden, Kenya, Tanganyika,
Uganda, Zanzibar, and Somaliland
Authorized Capital
P«ud-U(>
-£4,562,500
£2,851,562
Capital.:
Reserve
Fund
£3,104,687
The Bank conducts every
banking
description of
exchange business.
and
Trusteeships and Executorships
also undertaken,
■
-
Estabiised
*
1856
*
H. Hentz & Co.
Members
t
New
York
Stock
Exchange
American
Stock
Cotton
Chicago
Exchange,
Board
and
other
R. Y. Cotton
NEW
Chicago
Miami
MoBjrwood,
Exchange Bldg.
Detroit
Beach
Fla.
•
•
4,
•
N. Y.
Pittsburgh
Coral
Beverly
Gables
Hills,
trays
in¬
Jacobs
Co.
the
from
tional
company's
company
other
'horse-power
sibilities
tive"
thus benefiting by
market for its
lized
Vending
drink
soft
assure
stabi¬
coin-
produces
vendors,
ice
shake freezers,
milk
and
cream
and
bottle
manually
cover
affecting
with
the
current
U.
S.
litigation
in
is
pany.
taxes
from
which
seeking
the
com-
Because of this action, the
company has been compelled to
set up on its balance sheet, as of
April
30,
serve
of
"old pro" with a "New Look"
—a look to the rich opportunities
ment
of
of
1955, a contingent re$3,800,000, to the detri-
its credit rating.
The company has been
development
and
awaiting
today and of the immediate fu¬
the
outcome
the
Supreme Court of the United
challenging — and as potentially
rewarding—as the "horseless car¬
States in a
case
which exactly
paralleled the F. L. Jacobs situa-
riage" of 40 years ago.
In these
progressive times, when the trend
but
still
of
industry is towards expansion,
handed
down
company's
an
a
action
decision
counsel
advises
before
which
is fa¬
LAMB0RN & CO., Inc.
99
STREET
WALL
NEW YORK
5, N. Y.
SUGAR
Raw
—
Refined
—
Liquid
E x ports—Imports—F utures
com¬
great
out
of
every
of
100
packs
of
DIgby 4-2727
ciga¬
sold automatically;
are
all
in
soft
drinks
this country
chandised
through
and
that
are
are
mer¬
automatic
vending.
To
further
the
development of
its vending machine business. F. L.
Jacobs
Co.
recently acquired the
Industries, Incorporated,
manufacturers of vending equipment, and Selmix Dispensers, Inc.,
Mills
which
produces
pensers
the
operated
well-known
fquntain dis-
of Pepsi-Cola and Coca-
tion. The Supreme Court recently
of
Broadway,N.Y.6 COrtlandt 7-5680
of
lead in this industry. The
manually
ture, in new fields of endeavor as
111
import, that two out of every 10
candy bars that are sold are dis¬
pensed by vending machines; 16
bought
posi¬
Brokers & Investment Bankers
the
emphasis
that
the
Company is placing on the
known,
25%
Government
additional
monly
financial
the
1897
Office Tokyo—70 Branches
Home
fountain
operated
to be limitless. It is not
seem
important fac¬
tion of the company is concerned
Co., Ltd.
Established
unexplored potentials of this field
rettes
One of the most
5 ecurities
dispensing units.
production
to
■
Machines
company
Jacobs
liabilities.
current
<
product,
own
operated coffee, orange juice and
receivables
■
write
Yamaichi
"cap¬
a
potential.
or
operations.
The
preferred,
the company has NO FUNDED
DEBT. The very favorable current
position, at a ratio qf almost 2 to 1,
and
Call
The
motors.
of
which should further
convertible
sufficient
of Japanese
the framework of company opera¬
tions,
vision—
its
obtaining its future
supply of actuator motors within
With
cash
to investors with
pur¬
all
sources
very
almost
have unusual appeal
may
management is studying the pos¬
c®tock. plec2^ take the
alone
SECURITIES
investors with knowledge
the
Presently
chases
of
simple capital vending machines, it is not imstructure of 875,622 shares of out- probable that"TtV°win eventually
includes
JAPANESE
manufactures
of the ash trays used in U. S.
Cola. The operations "of Selmix
being integrated with operations
of the "Jacobs" plant at Traverse
City, Michigan,
Electronics
"Jacobs"
and
recently
acquisition and diversification, the
BOOK
are
MANUSCRIPTS
INVITED
Avionics
acquired
Looking for
a
publisher?
Learn how
*
vorable to the F. L. Jacobs Co. It Eicor,
we
can
publish, promote and dis¬
Inc., located in Oglesby,
tribute your book, as we have don#
alert, ag¬ is the opinion of company's tax Illinois. This
company is a spe¬
for hundreds of others.
All subjects
gressive and esteemed in its field counsel that not only will the cialist
in developing and manuconsidered. Especially seeking book3
—mindful of its primary responsi¬
on business and financial topics. New
$3,800,000 contingent liability be facturing electrical equipment for
authors welcomed.
Write today for
bility to stockholders, is guiding terminated, but a further amount the electronics
and avionics in¬
booklet CN. It's free.
the
company
along a carefully may be refunded to the company. dustries.
charted
course,
preparing it to This may result in an increase of
Vantage Press, Inc., 120 W* 31 St., N. Y.
Its
products, including such
In Calif.: 6253 Hollywood Blvd., Holly wood 28
participate
in
the
stepped-up over $5,000,000 in the net worth of items as
dynamotors, alternators
In Wash.. D. C.: 1010 Vermont Ave., N.W.
growth of modern industry.
"Jacobs" and should be equal to and
inverters, are used principally
In pursuit of new and diversi¬
additional net worth of more than in aircraft and in the
guided mis¬
fied products and the markets for
$6.00 per share.
sile program. The company will
their disposal, "Jacobs" — while
The removal of this roadback be operated as an electronics and
constantly strengthening its auto¬
not only would substantially inavionics subsidiary of F. L. Jacobs
motive line
has added vending
crease
the company's net worth Co., with production continuing at
machines, electronics and avionics
and current ratio position, but it the
plant in Illinois under the
devices and various defense items
should also greatly improve the same
management. -It
is
very
for the new era.
By integrating
company's banking relations.
likely that this phase of the Jacobs
the acquisitions, insofar as possi¬
Company's operations should fast
ble, with its present facilities and Automotive Parts and Accessories
for 42 Years
become an important
source
of
working force, "Jacobs" is adding
Automotive
items for all the earning power.
sales and production volume without incurring a disproportionate automobile
manufacturers are
Management
increase in costly labor.
Its com¬ produced with Chrysler, Ford, and
The most important factor in
General Motors, the largest cusNational
mitments are planned to fit in
is
tomers, followed by the so-called the future growth of "Jacobs
Incorporated
with its production capacity.
the aggressive, alert and enthusi¬
Established 1913
"independents."
"Jacobs" management
—
Quotation Services
Exchange
exchanges
YORK
•
Inc.
Trade
of
New Orleans Cotton
L.
Over-the-Couiiter
Exchange
Commodity
ash
considerable requirements of frac¬
Financial Position
Jacobs Co. enters its 45th year as
an
with
stability
operations.
Financial Position
cumulative
branch offices
our
—
Exchange
New
York
management.
Consequently, as one of the few
pioneer part firms still existent
which have continuously served
the
automotive
industry, ' F. L
in
Protectorate.
delivered
basic
minded public.
a
NY 1-1557
-
Mobile, Ala.
Direct wires to
automobiles, indicative of the
diversification, the
company should be followed with
keen interest by the investment-
With
HAnover 2-0700
New Orleans, La.-Birmingham, Ala.
stalled.
and
'
LD39
be
to greater capacity.
supplier of automotive parts, and
well advanced on the path to ac¬
Exchange
New York 6, N. Y.
interesting to note that by
legal requirements all cars muse
Firmly accepted in its original
as an important producer and
tors
America.
S7MDER,TAYLOR & C0.,lnc!
d
supplementing
power
automotive
Camp Manufacturing
an
prospects, can be expected to push
ing programs in the history of the
industry
this being
tangible expression of the man¬
agement's confidence not only in
the
future
of
the
growth
of
"Jacobs" but also in the continu¬
Commonwealth Natural Gas
is
a company
electronics
entrance
fields
fiscal
Trading Interest In
Bassett Furniture Industries
pushbutton age,
made by "Jacobs"
moves
new
with
Stock Exchange
It is
role
of
been its
2-7815
an
automotive,
Its total output
products is in excess
automobile
Stock Exchange
indus¬
any
of the most potentially bene¬
The
Over the years,
yyfcTlONNELL & To.
of
19 Rector St.,
standard equipment on all auto¬
mobiles in the not-distant future.
93%
motor vehicles.
finished
of the most fabulous
present
other
Members New York
that as a result of this development, these windows will become
F.
Frank ML Cryan
Steiner, Rouse & Co.
"
expected tripling of
portant and largest producers of
equipment
and accessories for
of
one
potentials
with
pected to maintain and improve
its position as one of the most im¬
1917j
present
avionics equipment.
"know
won
above
added volume to
with the
manufacturing
and
mvest¬
Counselor, St. Louis, Mo.
,
conclusion, based on comprehen¬
sive surveys, that this particular
the
ntly
—
well
expected from the company's
acquisitions in the vending ma¬
chine field.
It is an inevitable
ficial
Bearing Company
v/itnerspoon,
1955-56
be
one
hard-
with
ment
Members American Stock
for
sales
run
levels
Roller
—William
(Page 22).
and the so-called,
it is
a
Timken
1956 is completely
higher levels than
vending machines.
With the ever-increasing inter¬
est in and emphasis on electronics
designs,
adding
Specialists in
American
Bought—Sold—Quoted
any
from
valu-
t
at
$l,pOO,UUU,UUu sumuai
volume of merchandise purchased
own
which
c o rt s
New
Cryan,
Partner,
McLaughlin,
Cryan & Co., New York City.
1955.
the
patents
e
in
try,
begin¬
With
b 1
to
Since
F. L. Jacoby Company—Frank M.
Business La¬
history.
year
booked at even
growth
nings in 1911.
Broadway, New York 5
120
its
since
the fiscal
field has
auto¬
indus¬
participated
1920
Member
WOrth 4-2300
divisions and
try, in whose
growth it has
Corporation
Stock
Company, with
parts
the
motive
New York Hanseatic
of six
network
its
in
time
than
favorable
more
should
eight plants, is and for 44 years
has been basically a manufacturer
of
specialized
for
American
Louisiana Securities
particular security.
a
Aggregate
Co.
The F. L. Jacobs
Tidelands Oil
Associate
Alabama &
Their Selections
are not
be
CRYAN
New York City,
Established
of experts
intended to be, nor
offer to sell the securities discussed.)
Partner,
L.O.F. Glass Fibres
I
group
(Page 2).
M.
FRANK
Hycon Manufacturing
White Eagle
different
a
for favoring
(The articles contained in this forum
Holly Corp.
Western Light
week,
Week's
Participants and
advisory field from all sections of the country
in the investment and
Central Telephone
This
Forum
Thursday, July 14, 1955
CaL
Quotation Bureau
.
Geneva,
Switzerland
Amesterdam,
Prospects
Holland
For the
coming years* the prospects of the corporation seem to
Recently developed by the com¬
pany is a new type pushbutton
electric window lift. It is possible
astic methods of the
ment.
It
is
new
understood
manage¬
that
the
46 Front Street
CHICAGO
Continued
on
page
22
New
York4,N.Y.
SAN FRANCISCO
Number 5446
Volume 182
The Commercial and Financial Chronicle
...
(163)
INDEX
Dividends, Dynamics and Wages
Articles and News
By PETER L. BERNSTEIN
Vice-President, Rernstein-Macaulay,
Neil H.
economy's dynam-v
ism, there is strong possibility of lag in dividends and earnings—to the detriment of common stock prices. Maintains
spiralling cost of labor is main cause of failure of earnings
to keep pace with the rest of the economy. Stresses low takehome yield on common stocks, and the contrast with return
available from tax-exempt bonds. Cites rising costs of capital expenditures, maintaining they
Concludes
sive.
stock market may
be
of
verge
on
Jacoby
Cover
Dividends, Dynamics and Wages—Peter L. Bernstein
A MID-SUMMER'S
:
dream
no
l
4
,__l,
We're
Coming Changes in Oil Refining—A. L. Lyman
I
NIGHT DREAM?
3
This is
•Allied Strength—Ira U. Cobleigh__
;
willing to back
Our bids for
5
-
junk
With lots of jack!
America's Future in International Trade—Sen. John Sparkman
6
Obsolete Securities Dept.
v
Estate Planning—Eleanor A.
often merely "defen-
are
»llCHTfElSTfll!
Some Readings of Our Economic Barometer
Market economist maintains that despite
j
Page
AUD COMPAjnr
Inc.,
Investment Counsel
I
3
Kropf___
________._i.__ ' 7
99
WALL
STREET, NEW
Telephone:
very
Adjustments in Railroad Regulation—Richard F. Mitchell
YORK
WHitehall 4-6551
9
dangerous period of over-discounting.
.Some Measures of Today's Stock Market Level
We hear
(3) The only
great deal these days
a
dynamic economy, about
■growth, research, new markets,
and new products.
All of these
Qbout
our
icteas
are
very
profits
the
in
labor
has
of
new
equipment which makes
fewer
stimulat¬
ing, and the
equipment costs
more
been
install
to
But
workers.
and
money,
The
labor
recent
in
reached
the
The
by
of
from a
mother
and
squab
transistor-circuited
ser-
while the car in
will be an atomicpowered demon which will make
our present-day
barber pole hot¬
rods look like old Model T's. Thus,
vomechanisms),
garage
dream
its
is
of this
what all
easy) to project all ris¬
so
ing economic curves into the in¬
definite future, that one
should
not fall into
the trap of
automatically
believing
earnings will
and
dividends
that
all
step
keep
the
And, of course, if dividends
and earnings lag behind the growth
in the rest of the economy, then
way.
stock prices will lag, too.
common
Therefore,
future
the
what
into
peers
the
more
will want to
investor
thoughtful
know
he
as
hopefully,
obstacles
stand
may
of "the best of all pos¬
sible worlds," and specifically he
will want to give some considera¬
tion to the following factors:
in the path
Our economy is apparently
dynamic that there is an insa¬
tiable need for new capital equip¬
(1)
so
cause
cash
outflow
dividend
behind any
which
payments
to
lag
increase in cash earn¬
But the problem goes very
deeper than that: corporate
the
growth of the rest of the
•economy,
for labor has been de¬
manding— and
getting
—
an
In
such bouyant
.r
optimism is in fact
this
The Key to Peace May Be
ever
Gold—B. Barret Griffith
V.1 '.'V
"J.-:,/.-'•
::
Hard Put to It!
"Two-thirds
.
been
the
and
.
.
tained
of
capital
(Letters to Editor)
47
(Boxed)
from
tal
expenditure will be
See
It
Cover
(Editorial)
than
the
in
mand
over
double.
.
.
.
.
.
.
.
De¬
Pacific
quality
technical
which
services
From Washington Ahead of the
fre¬
quently involves the provision of
extra
18
News—Carlisle Bargeron____
Uranium
&
6
"In this sense,
tal
Indications of Current Business Activity
equipment.
much of
expenditures
our
capi¬
does
consequently
business than
as
not
NSTA
8
Notes
24
News About Banks and Bankers
Oil Corp.
We maintain trading markets in
than
22
over-the-counter
&
more
securities
Mackie,
HA 2-0270
40
inc.
Exchange PI., N. Y.
Teletype NY 1-1825 & NY 1-1826
4
Our Reporter on Governments
250
Singer, Bean
..
Observations—A. Wilfred May
investment
new
a
34
Mutual Funds
offer
prospects of any great increase of
income. The normal test of profitearning cannot be applied |to such
investments, ivhich must be treated
rather as a cost of maintaining our
and
39
—
be defensive
man
Direct Wires
to
Philadelphia • Chicago • Los Angeles
which add°d return can be ex¬
on
Our Reporter's Report
The Facts of Recent Experience
47
Public Utility Securities
(Italics added.)
pected."
35
The issues posed by
sion
are
this discus¬
academic—they are
not
clearly revealed in the actual ex¬
perience
Securities Now in
industry.
American
of
spent
the
total
a
of
$45
billion
1951-54.
years
But
45
Salesman's Corner
Securities
The Market.
the
of sales and earnings cer¬
tainly
supports
much
The
and You—By
..
vjas
a
on
page
Stock Exchange
20
•
Chicago
•
•'...
'
' -'-.'J
•••':■
Twice
stock at 75< per share.
It is now-
selling around $4.
We
now
are
recommending
URANIUM CORPORATION
OF AMERICA
2
5
1
Weekly
Gardena, London,
Edwards & Smith.
Drapers
land, c/o
which in
to
E.
C.
Eng¬
be
our
one
opinion
PRICE ON
Company
Reg. U. S. Patent Office
B.
DANA
COMPANY, Publi»her«
DANA
to
vertising
records,
is^l.
corporation
state and city
news,
President
Other
Offices:
14,
1955
market
news,
bank
quotation
clearings,
etc.).
135
at
the
post
office
at
New
Phone
South
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in United States, U. S.
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write for
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Bank
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St.,
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and
Note—On
rate
of
Investment
30 FEDERAL
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Quotation
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McCOY & WILLARD
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Countries,
Other
the
La
or
illustrated brochure
Possessions,
Other
Worcester
Chicago 3, 111.
1942,
REQUEST
Subscription Rates
Thursday (general news and ad¬
Issue) ami "'try Monday (com¬
statistical
25,
York, N. Y., under the Act of March 8, 1879.
9576
SEIBERT,
Thursday, July
ary
Colorado
second-class matter Febru¬
as
York 7, N. Y.
SEIBERT, Editor & Publisher
D.
WILLIAM
Reentered
promise
of the richly reward¬
Plateau.
Copyright 1955 by William B. Dana
CHRONICLE
recom
we
Corporation
Stylon
V
48
'
Glens Falla
•
ago
year
ing producers in the
HERBERT
TELETYPE N. Y. 1-5
.}•
Industry
Washington and You
ST., MEW YORK 4, N. Y.
•
_____
.__
•
"cost of
16
Wallace Streete
Security I Like Best
The State of Trade and
of this
a
28
_.
proposition
the
WILLIAM
Schenectady
40
___
Prospective Security Offerings
on
record
that
Registration
plant and equipment during
four
Over
mended
32
Securities
Railroad
Every
•
:____
Einzig "The Credit Squeeze in Britain"
.
.
of
New York
Uranium
8
Investment Recommendations
Dealer-Broker
products . . . in¬
creasing use of expensive plant
demand for a higher standard
.
Factors
Standard
plete
Nashville
in
Straus-Duparquef;
Standard
10
Coming Events in the Investment Field
all phases of the
rising costs of capital
the public's demand for
.
8
Business Man's Bookself___
PREFERRED STOCKS
•
office
City
Gulf Coast Leaseholds
Nathan
We must face higher
.
industry:
higher
past.
the next 25 years (will)
costs in
capital
goods
recent
FINANCIAL
Boston
branch
Lake
Corpus Christi Refining Co.
25
Stocks
Bank and Insurance
higher
even
'
•
Teletype: NY 1-4643
to
Regular Features
As We
Spencer Trask & Co.
Albany
wire
re¬
It appears prob¬
Continued
TELEPHONE HAnover 2-4300
Direct
outlays
REctor 2-9570
BROAD
City Stock Exch.
Broadway, New York 4
Salt
25 Park Place, New
25
42
Cover
The COMMERCIAL and
Members
Guaranteed Annual Wage
DIgby 4-4970
Published
specialized in
Lake
able that the future levels of capi¬
fabulously productive economy.
have
J. F. REILLY & CO.
Members Salt
___!
depreciation
remainder
earnings.
/
follows:
from
met
V-'I
*
Spokane Stock Exchange
giant corporations, which warned
as
J'-:.
.
*
recently
with
stockholders
22
'
apt precision,
frankness, and clarity in the an¬
nual report of one of the world's
its
20
—
Another Group of Comments on
summarized
inquiries invited
gjupport of the Fulbright Bill Concerning Unlisted
if
The whole problem was
Your
15
W. Babson___
Companies—G. Keith Funston
fully justified.
greater share of the fruits of our
For many years we
15
__
The "Guaranteed Wage"—Roger
market
stock
be reflecting
whether
new
cash earnings are likely to lag be¬
hind the
Rocky Mountain Area
Market
—Robert S. Nattell
Thus, manufacturing corporations
much
14
and
labor
of
caJls for so^e
may
ings.
(2)
Labor Government—Donald R. Richberg
a
How to Gauge the Top of the Stock
the situation
sober analysis to see
ment, and this means a continued
heavy
these
optimism.;. Clearly,
have
dynamic change promises the in¬
vestor in terms of earnings and
dividends on his common stocks.
It has become so fashionable (and,
indeed,
cost
that
curious
own
about.
back to earth, it is
just
ask
to
has
market
intensifying
rising
should
responsive to magnetic tape con¬
fair
Listed & Unlisted
13
ing needs for capital equipment, it
father
But to come
Prospect of
with dividends limited by mount¬
will turn
a
squab
course,
to
the
of
chick-
(bred,
i
evidence
every
in
pot
bull
■
Securities of the
and
trends. Thus, with profits squeezed
into
millenium
i--
<
steel industries have already given
en
every
...^
...
Look for Extension of Guaranteed Annual Wage Demands!
agreements
automobile
be¬
famous
every
::;V;■■
12
—George Moskowitz
comes.
and
in
the
so
future
trols
11
_
Banking in Prosperity—Woodlief Thomas_____
new
the more
glamorous the
L. Bernstein
Financial Roots of Dynamic Growth—W. Randolph Burgess.
cash drain is increased still further.
imagina¬
er,
Peter
Brokers & Dealers
10
pos¬
sible the production of more goods
exciting and
tive the speak¬
—C. Austin Barker
of
cost
with
very
to maintain
the rising
way
face
Record
—
Monthly,
(Foreign postage extra.)
account of
exchange,
the fluctuations in
remittances for for¬
eign subscriptions and advertisements must
be made In New York funds.
A.
T.
&
Private
Securities
ST., BOSTON
T. Teletype
—
Boston 128
Phone to New York
REctor 2-4208
City
The Commercial and Financial Chronicle
(164)
4
Thursday, July 14, 1955
...
i
former
Allied
Strength
Under this arrange¬
The long range result is
wind up
each year.
Enterprise Economist
that Alstores will finally
owning
largest department store chain in
ties,
merchandise
America, Allied Stores Corporation—its stocks of
V
and its common stock.
when
was
department stores were the major
citadels
of
merchandising.
By
trolley, bus, subway, or motor car,
shoppers(pre-
inantly
o m
feminine)
would
con¬
verge
b i g
centrally
located
i
p
the
on
n g
shopempor¬
iums, in the
busiest
tions
sec¬
of
busy
metropolitan
and
streets,
buy every¬
thing
from
pins to pianos,
Ira
U.
with traditional
from
Cobleigh
and
pocket-
books
fabricated
houses.
something
happened.
streets
to
Then
pre¬
a
transit
went
fares
specialty
shops blossomed, and finally there
was the major postwar home mi¬
these
factors
reluctance
buyer
crease
to
to
north of Boston,
various stages of
to
Houston,
up¬
in
others
and
pad¬
an
suburbs.
Shopping
Allied
new
a
planning
They also caused
Jersey's most popu¬
center a-building
in¬
dling down to the center of town
shop.
new
doesn't
and fastest growing
lous
There's
tended
the
over
locations
it
heart of New
gration to the suburbs.
All
department stores;
of shopping
take
much
imagination to perceive, in them,
the department stores of the fu¬
ture.
The Bergen Mall center in
Paramus, N. J., is right in the
nagging problem,
up,
construction
or
near
Pa.,
Levittown,
Texas,
in mail and telephone or¬
dering, and, in due course, evoked
brand new buying customs and
Cincinnati,
Ohio, and
at
Hicksville, L. I. (plus a new de¬
partment store in Miami, Fla.).
facilities in the form of suburban
All
shopping centers that sprang up.
These first appeared as a cluster
have
or four stores, often start¬
ing with a supermarket, and then,
as the peripheral population grew,
above
near
surge
they blossomed out
as full blown
single-stop shopping centers con¬
taining department store branches.
It is the development of these out-
branches
relative
the
has
that
decline
depart¬
ment store sales in the immediate
postwar
market
of
zing for shares in this field
could
worthy example
department
find
more
a
of distinguished
store
operation,
nor
a
fee
to
Altogether,
the
capital
million
layout
store chain in
wards
for
of
this
million
$575
(fiscal
year
January
31).
contains
some
in
gram,
sents
1954
ends
The
Allied
group
very
famous
names
merchandising—Jordan
land
est
up¬
predicted
year
shopping
close
to
$70
A
mortgages.
Marsh
and
to
buildings, it is of inter¬
see
how
handles
Allied
all
the requisite real estate
In
(wholly
acquire,
financing
Realty
Corp.
Alstores
1947
owned)
created
was
to
and finance proper¬
ties for Allied Stores.
It has, in
in
Boston, Stern Bros, in New
York, Gertz in Jamaica and Flush¬
own
numerous
property is not
of itself conclusive proof of cor¬
porate progress;
has
lied
instances, bought
prop¬
erty leased to Allied Stores from
done,
branch
Allied
but the way Al¬
it is.
Each new
store,
unit in
or
a
shopping center, has been success¬
ful from the day it opened, and
the
will gross
least
$10 million
a
Although 300,000 additional
year.
shares
common
earlier
sold
were
this year, the per share results on
the larger capitalization will prob¬
ably
the
exceed
in
shown
$5.50
test.
Can
expand
units
new
share
per
That's
1954.
funds
acid
the
of
capital
In
share net?
per
good companies like Allied, they
can and they do.
About
dividends, Allied has paid
since 1947.
It will pay that,
and possibly more, this year. The
least coverage of the $3 dividend
was
in 1951 with $3.30 net per
$3
and the best, 1948, was
Also persuasive to stock¬
steadily
share;
$7.14.
holder contentment is the
of total sales with
figure double that of
curve
1955
1945.
Everything points to
a con¬
tinuance of this pleasing sales ex¬
pansion.
the
with
shares
store
favorites
market
were
in
1.954,
16
leading issues advancing
35%, a performance inferior
to the Dow Jones Industrial aver¬
This
age.
shares
due
department store
year,
better
seem
partly
to
appreciated,
6V2%
a
The
months.
rising
national
to
increase
in
disposable
in¬
projected for 1955, all point
sales and bigger nets.
come
bigger
Of
the
course,
buying
Christmas
always results in the lion's share
of sales
(between 40% and 50%)
coming in the last quarter of the
This
Christmas
should
biggest buying spree
in history, and Allied will surely
share generously in it.
Department store retailing is so
arranged
that
even
relatively
slight increases in sales can be
create
Happy Hunting Ground !
That's
acres
.
.
.
Wisconsin
of
national
for
the
forest
.
rod
.
.
and
gun
set
with 2,000,000
10,000 miles of trout streams
3,500 lakes full of perch, pike, bass, and sturgeon.
the
translated
into
stocks
we
make markets in
or
number of
find them for—stocks like—-
net
profits.
fact
But there's good hunting for investors, too, any
that
sizable
This
costs of
is
gains
due
the
to
occupancy
in
such
taxes, maintenance, lease rent¬
al, etc. and management and ad¬
Giddings and Lewis Machine Tool
Marshall and Ilsley Bank
figure
Kearney and Trecker
Northwestern National Insurance
charges
are
a
Exchange Bank
Snap-On-Tools Corporation
Wisconsin Electric Power
3.60% Cum. Pfd.
Wisconsin Power and Light
Latest quotes?
Company
If
do
and
fluctuate
not
with
is seeking a depart¬
equity of proven merit,
anyone
ment store
durability, sturdy bal¬
ance sheet strength, with progress
propelled by an energetic, farsighted, and competent manage¬
Just eall—
ment, then consideration of Allied
Stores
Trading Department
yield
Merrill Lynch, Pierce, Fenner
70 PINE STREET
Beane
NEW YORK 5, N. Y.
Offices in 106 Cities
above
is
on
indicated.
the
5%.
At
common
For
the
is
591/2,
a
more
the
shade
con¬
servative, there's a 4% preferred
of prime quality selling at 971/2.
Preceding these equity isues there
is $40 million in long term debt.
There has been considerable Wall
the
with
them
the
of goods
price and
quality they could accept.
send
amount
they have desired at
a
The account of Soviet-bloc
hibits
ex¬
trade
at
fairs, shows them
occupied with propaganda pur¬
poses
rather
than
commodity
sales promotion. - "Observers
that
designed
the
displays
were
the
impress
to
more
crowds than to attract
.
.
.
concluded
prospective
buyers."
Then,
our
the
of
many
stemmed
officials find- that
difficulties
have
from
the
of
nature
the
Soviet-type economy and the fact
that the trading system is 100%
state monopoly.
Practical
.
is
a
Blocks
As relevant specific hindrances,
the report cites lack of reciproc¬
ity, the veil of
nation
under
discrimi¬
secrecy,
and
cover,
encom¬
substantiated in the cur¬
rently issued semi-annual report,
passing price-manipulation in the
state-controlled economy's mon¬
Activities
opolistic trading operations.
The "one-time buyer" obstacle
tively
"Soviet
Economic
Bloc
World," submitted to
in The Free
the Congress by
Harold E. Stassen,
outgoing director of the Foreign
Operations Administration.
This new Report reviews Mos¬
also
is clearly cited here, with
quotation of the following ex¬
by the President of the
pression
Federation
of
Industries:
British
—"Few, if any of us, would put
down an expensive new plant or
tration, to play off one nation
against the other, to divide the building to cater for trade with
at economic pene¬
cow's attempts
and
nations
free
as
neutralize
to
With these policies
trade controls.
background, it cites some of
a
practical difficulties obstruct¬
the
ing free-world traders in dealing
countries
may
where
Instances
litical
explicable,
significantly dis¬
closes, that despite widespread ex¬
pectations to the contrary, Soviet
purchases from the West actually
relaxation
the
declined
after
strategic
shipments
on
August.
last
lasting right up
to the present, authoritatively de¬
molishes the Moscow propaganda
trade, reported
line that
tions
as
the West's trade restric¬
have
the
been
of the
cause
are
mark, Yugoslavia, and Iceland.
And
then
certainty
there
goods last year turned
out to be "a
golden bubble inflated
propaganda which
soon
burst," in the words of the report.
Instead of exporting needed goods
at the right prices to pay for her
swollen
purchases of meat, fish
and butter, Moscow paid for them
by exports of gold—as a non-re¬
curring one-time incident.
from
Far
in
the
year,
foreseeing
East-West
Stassen
any
business
tions of orders
The
Soviet-bloc
the
overall
chronic
tem, is also recognized as a major
obstacle.
Likewise
demonstrated
inabil¬
it.
of
E'ast
-
Stassen's
if
offers an
important service toward debunk¬
ing
is
Report
Communist-serving illu¬
the
there
lies
untapped,
the West's restrictions
exports,
vast
a
Street
potential of
sat¬
isfactory trade.
Joins Sheehan
(Special
to
The
Financial
Co.
Chronicle)
BOSTON, Mass.—Anthony Rados
is
now
with Sheehan
&
Co.,
79 Milk Street.
Joins Marshall Staff
(Special
Adles
particularly im¬
the
because of
strategic
on
West
portant in specifying some of the
which
report
sion that beyond the Iron Curtain
in¬
continues,
exports
level
Mr.
offer
findings
Blocking the Two-Way
to
to
as a
to The Financial Ch .onicle)
CHICAGO,
have
obstructive
two-way trade is the Soviet bloc's
of last year.
in
demand
arising out
of the nature of her economic sys¬
trade may even decline."
Soviet
purchases in the free world actu¬
ally fell during the second half
The
oc¬
previously placed.
Soviet's
for special concessions,
this
the conclusion: "If the recent trend
in
"un¬
deal,"
casioned by the Soviet's cancella¬
if
crease
often
is
the
after
stepped-up purchases
of consumer
with
po¬
else
or
reliable supplier of
traditional exports.
Bubble
Propaganda
Moscow's
Moscow
admitted
ings with Australia, Mexico, Den¬
ity to act
Burst
abrupt
wholly in¬
shown in her deal¬
reasons
recurrently
paucity of East-West trade.
A
of
either for
Controls Alibi
Report
orders
regard¬
price, regardless of the
we
may offer but simply
political grounds."
on
Debunked
The
initial
repeated
value
reversals
West's
be
never
less of the
with the Soviet'bloc.
ways
dividend
Company
.
trade
street is now authorita¬
two-way
steady
sales.
Marine National
of
that
conclusion
This
officials
trade
faced
refusal of Soviet bloc countries to
is
line
realistic
The
Western
persistently
do
we
Russians?"
the
with
are
as
ministration
Madison Gas and Electric
May
inquiry is based on "Can we
year.
WISCONSIN
"Should
question
academic.
in¬
sales
product, high levels of employ¬
ment, and in particular the $7
billion
A. Wilfred
our
The
business
in this industry for the first
crease
six
of
choice.
contrary,
The decline in Soviet-Free World
Department
not
matter
usual
Mere addition to
about
together with all the big
already operating, repre¬
a
king-size investment in
2,516,700
outstand-
Stores
ing).
the
new
of
of Allied
shares
Despite the pleasant talk to the
the
share applied against the
rising
Since this suburban center pro¬
department
million, and
Allied has
probably
from retained earnings, and
come
cou¬
the U. S. with
net sales of $544
in,
third of this money will
stores
largest
get
in the next 30 months.
poration.
the
to
get out.
the balances by
is
knife
butter
a
pled with effective expansion into
shopping centers, than the enter¬
prise known as Allied Stores Cor¬
LS
bracket,
income
average
planned accordingly.
a
hardly
of rapidly growing,
facilities listed above will involve
merchandising.
We
as
population; and all make the vital
provision
for
commodious and
convenient parking facilities. To¬
day's suburban buyer shops by
motor car, and insists on an ac¬
cessible drive-in space requiring
and provided more
years,
selected
shrewdly
areas
centers
shopping
new
been
neither
reversed
in
these
serving
of three
skirt
SCOTCHING EAST-WEST TRADE ILLUSIONS
including debt amortization.
costs
look
you
centers,
city
got more congested, park¬
ing got to be
if
projected
slowly
Main
By A. WILFRED MAY
proper¬
of any debt, since the
so arranged to pay all
are
In our long-time observations on
parent
is
not
ing, Long Island, The Bon Marche responsible for Alstores debt, and East-West Trade, following our at¬
in Seattle, Dey Brothers in Syra¬ funds which might otherwise be tendance at the International Eco¬
cuse,
Titche-Goettinger
Co.
in tied ,up in real estate, are released nomic Conference in Moscow and
Dallas.
Altogether there are 75 for Allied working capital.
subsequent instores in the chain; 32 full grown
Moreover, a
quite impressive vestigation in
department stores, 33 junior ones, "hidden asset" is being built up principal Eu¬
seven
big
branches and
three in the Alstores equity.
For ex¬ ropean and
specialty units.
These retail out¬ ample, Alstores realty holdings Near and Mid¬
lets are spread all over the coun¬
dle East coun¬
(Jan. 31, 1955) were carried on its
try, a fact auguring well for sta¬ books
at
around
$8.9
million. tries, we have
bility of earning power, since a
Against that figure stood debt of consistently
recession
in
one
locality, could
e m p hasized
$81.6 million.
Well let's face it—
our conclusion
easily be offset by more favorable no
self - respecting
institutional
conditions elsewhere.
that the occur¬
mortgage lender is going to loan
In
any
event, Allied, judged above 90% on store property. So rence of a ma¬
both by past operations, and its the obvious conclusion is that Al¬ terial increase
business
plans
for
extensive expansion, stores holdings are worth a lot in
demonstrates a fabulous retailing more than $89 million—probably with the Rus¬
"know-how."
It has done well $20 million more (or about $8 a sians is not a
big downtown
d
leased
these
all
free
leases
Meanwhile,
Time
Observations.
ment, the lease is usually reduced
By IRA U. COBLEIGH
A midsummer look at the
favorable
more
lied ) leases.
then created
(to Al¬
and
owners;
and
new
is
Marshall
Salle
now
111. —Elizabeth
affiliated
Company, 30
M.
with The
North La
Street.
Communists
actually made it impossible
conduct
normal
commercial
J. W.
Langdale Joins
trade.
Webber-Simpson & Co.
(Special
Street
chatter
merger
a
possible
between Allied and Mont¬
gomery
Ward.
ment
much
is
about
Allied
more
should
combination
ever
would
"jell,"
be
the
exciting;
but Allied doesn't have to await
merger
to be
a
The
Financial
Ch cnicle)
dale
has
become
associated
manage¬
progressive;
but both companies are respecters
of a strong cash position.
If this
merger
to
CHICAGO, 111 —J. Willis Lang-
good stock.
a
with
Webber-Simpson & Co. 2G8 South
La
Salle
Street, members of the
Midwest
Stock
Langdale
was
of
for
the
mutual
Exchange.
formerly
funds
Taylor & Co.
Mr.
manager
department
.
5
(165)
Number 5446... The Commercial and Financial Chronicle
Volume 132
quality requirements are ex¬
remain high, with over
90%
of
the demand
being for
line
IF
Steel
The
Coming Changes in Oil Refining
Production
By
Electric Output
Carloadings
Retail
State of Trade
Trade
San
Food
Auto
and
Industry
Price
Index
Mr.
Business Failures
in
worked to curtail
total
industrial
ended
on
week-end
in celebration
of
a
product quality, particularly in more catalytic equipment for
decrease in
Wednesday of last week.
Scattered factories and many of the coal mines shut down
for
as large as a week ago. Output in
most industries, however, remained noticeably above the corre¬
sponding year-ago level.
t
less; than one-fourth
While
claims
for
major element in the expand-
A
idly
increasing
in
June
only
was
200,000
above
the
Presi-
the individual refiner will be the
a
The
merce.
lifted
agency
the
estimated
level
of
output
gains" took
cials noted.
increase
Such
an
in the second
carried production to around the
In the steel
gest order log-jams in their history.
it
a-».
Age," national metalworking weekly, states this week.
The producers are confronted with a maintenance problem
first-structure
95_
range
will
signifito
supply,
the
fuels
llkiXkl
*-4jr
natural
The
tinue
be called upon to make
gasolines
to
Forecasters
r orecasters
one
barrels
trend
scrap
is
market
running
wild
This day of reckon¬
in the fourth quarter,
Domestic
this week
car
truck
and
production
last
week
equaled
truck
output at 163,266 units or
u
140,356 cars and 22,910 trucks,
Continued,
on
page
37
have
nave
enes
increase
iu
the
is
base
ai
point
.,.,.
t
a
corre-
this
for
b
,
.
In addition to crude proc-
paper.
-
of 8,500,000
since
canaHtv
essed-it
esse a, it
inelndes
mciuaes
natural
natural
gas
gas
linuq
uids and
liquefied petroleum gas,
ueiiea petroleum gas,
although a considerable fraction
of these do not physically pass
u,
,
through the refineries.
It
seems safe
there will be de-
therefore
predict'that
to
substantial number
tonation
in
of cars.
considered
are
the
of
erence
Hill climbing will exag-
a
Products to. come, both oils and
gasolines, will tend to reduce_oc-
preffor the
military
tane-requirement increases. Thus,
the octane requirements of future
voia+ne+VDe of fuel and the nrob-
™
that ck-nian
^ gj* civilian
lUdl uviuan
abilitv
the
the
me
of
of
ui
use
use
use
dD111L^
p
n
b
Fig
|9g5
3
u e p
years
each
of
nrridured
influenced
result
*
will
he
hetter
•
i
morc
demand
petroleum
uve ;r 1.
:.
----on refineries.
ucniciiiu
.
production, and
that, with
ration
and
and
with
will be
on
that
is
.
A
.
per
cent of gasoline pro-
increasing demands of a growing 'e™8, °£^UOT growth of thermal
av^at[Jn'te;nd~us*frv""
military duced.
The
,
and
V "
iirst mnuary
r'
Continued
civilian. Aviation-gaso-
WE
ARE
a
™
on
THE
OF
we may as¬
vigorous explo¬
development
collins
t.
philip
mr.
program
VICE-PRESIDENT
AS
adequate imports, there
no
ANNOUNCE
TO
PLEASED
APPOINTMENT
crude supply limitation
IN
the passage of time
CHARGE
OF
BRANCH
NEW
OUR
OFFICE
AT
there
39
products as a percentage of total
petroleum run, the principal one
continuation of the reduc¬
yield of residual fuels.
Fig. 2 shows the yield of various
being
tion
a
SOUTH
LA SALLE
CHICAGO
in
products
as
troleum
demand
1965.
are
We
per
spectacular
3,
STREET
ILLINOIS
cent of total pe¬
from
1930
to
all familiar with the
in
increase
during
yield
the
late
Herbert
gasoline
1920's
j.
Sims
&
Co., Inc.
and
early 1930's and the corresponding
in residual fuel.
Gasoline
will
remain the largest
volume
52
WALL
STREET
drop
One South William Street
product
New York 4, N.
Performing,
As we are
refineries.
our
With
will be mailed upon request
performing
aviation-gasoline
degrowth
of
thermal
aviation-gasoline de¬ predicted
eracking and reformii
acking and reforming and cata—
verv
expected to decline very cracking and reforming and cata1S .*p. *e„a
aenine veiy
reforming in
tic rrackine and reforming in
cracking and
slowly, with jet fuel supplying the jyllc cracKing ana reiorming in
slowly, with jet tuel supplying the terms of per W
cent of gasoline prorms
note
mand
will be changes in.the demand for
jor the fiscal year ended June 30,1955
in
^
increasing demands for gaso¬
sume
Report
ears
rtat;nlines
tfa„nljnpe
+„r
,
concerned with trends,
this basis is satisfactory for our
consideration.
Fig. 1 also shows
crude
Annual
the
hv
which they will be used. The net
,
,ftCr
the
will bei influenced py tne cars in
V
1945' 1955' and 1965' rela"
in;
and
Whlth can pe produced, and .the
octane numbers of the gasolines
the
for
,
octane numbers
shows
aviation gasoline, and jet fuel, and
percentage
,,
,
will be influenced gasolines
by the
of the
kerosene type will be relatively cars
line, distillate fuels, residual fuels,
and
"other" products.
This in¬
creasing demand will require more
Lehman Corporation
gasolines some four
cars
primarily
the
The
sat90%
be expected during the next numbers Untne otner nancl, tne
Jt
fuel
j
considered use of 10W/30 oils and other new
_
an
units despite Independence Day observ¬
ances and heat losses which have cut into
volume.
"Ward's Automotive Reports" estimated the July 5-9 carrate
4.4%
refinerv
Present
^re+se"1 relinery a correcapacity
to increase at
to
as
decade
and
n 3%
(3.3/o
increase
increase
However,
proportion
a
economical cars, using betThese curves show ter gasolines,
snnndintT rate tn mee+ ihn fntnro
sponaing Idle IU
sponuing rate to meet tne future
ruiure
To the refiner this
motor.gasoline demand upwards
T<> the refiner this means a conmeans a conlued growth
d^af.dsL ^_1_ shows U S total af 4.5 million barrels daily by iat.5, tinued growth , of catalytic proctte re- of
of catalytic procDetroleum demand on
barrels daily by 1965!
ses, principally catalytic reformof which one-third will be pre¬
fineries from 7930 to 1965. To^al of which one-third will be pre- esses, principally catalytic reform:
g.
Fig. 5 shows the past and
mium quality. It is interesting to
1petroleum demand on U S renn- mium (luality. It is interesting to inS*
shows of thermal
petroleum aemana on u. b. refinedicted 5 growth the past and
•ii
jumping as much as $6 per ton in some consuming areas. Steel
companies are in a bad way for scrap. The blast furnace slow¬
downs and attempts to step up production to where it was before
the strike have put a premiurfKqn scrap. • Scrap prices were on
the rise even before the strike, this trade magazine states.
annual
of
of
rate
rate
1925)
will
win
with prices
since
be
the
of
the predicted octane-
high
ao
quired.
This fore¬ lu
fore^
,
yrif* d snow!>
of the the demand for reSuIar motor
gag0l[lie "premirum motor gasoline
1925, but at a lower sd^uorie> ^ emium
unor gasoline,
forecast compared with
should
cars
octanenumb4rfhigto
daily by 1965.
annual
annual
instance,
is
average
«asoiines
range.
0f these
cast is largely an extension
bring deliveries into line with promises.
The
increase
t th
reject
may
J
•
to
t*h
to whafhas happened gerate this by raising octane re^"ng the past 10 years and what X^rT on^he^ L^hand' tht
will reacn slightly oyer 11 million
will reach siignuy over 11 million
slightly over
Some mills will be forced to set
ing v/ill intensify the scramble for steel
continues this trade weekly.
continue
nepe
U. S. refiner-
on
x
will
les
though consumers are in for another cut in
full month's production of, sheets for
that totai
inat total
agree
agree
troleum demand
picture, this trade authority declares.
at least
of
t
the
bv
is'below
isfv
°f ^ U"lted with gasolines because of the
States"8
If anything, it is
increasing in tempo. Automotive
companies are pushing production to the hilt and expecting
prompt deliveries in the face of short inventories. They will make
the switch to new models almost without missing a beat in pro¬
duction. A roll call of other industries shows pretty much the
aside
of the developments
some
thpripvt IU
tne next m vpar* in the petroleum
years in the netrolenm
demand.
their steel rations this quarter.
be
f
^S^^^^flbd
a
Hne
.
sWer
as
will
AUenUon
cars
^
future
satisfied
premium-ga'so-
0f
akes
.
these
0f
Gasoline
continuing
yields65 This"d°iscussion wfflS con- with
as tin plate, which was not increased in price. For
the composite rose more than the average of $7.35
ton announced by major producers.
Meanwhile, there is no prospect of a letdown in consumer
looks
...
gas,
the oil refiner will
ac
number
products
extraoola-
point L blsed ^n the ^ast
p
,
models prorated
Jrdance with production of
veral
processes.
various
,
,
^b r^
to
leum industry,
reason,
now
.
and coal—will con- discussed separately and in more
supply the bulk o£ our detail to point out some of the
requirements. In meeting the de- future problems the refiner must
mands to be placed on the petro- face.
reduction in available
this
It
th
ter tetraethyllead response with
lower sulfur content, coupled with
the availability of hydrogen from
catalytic- reforming operations
will result in wider application of
products, such
same
Each
Another factor, bet-
sulfur-removal
in
gasolines
98-octane-number
to
.
already at work,
are
tion of octane-requirement trends
total installed catalytic-reforming
capacity near to a saturation point
before 1960.
*
.
this trend, catalytic reare being
installed at a
rapid rate; and this will bring the
to meet
formers
present major sources—petroleum,
supply of hot iron due to the strike and blast furnaces down for
repairs and the usual hot weather and vacation problems which
normally slow production during the summer, it asserts.
Steel price increases following the wage settlement jumped
"The Iron Age" finished steel composite base price $7.62 per ton
to $103.56.
"The Iron Age" composite does not include coated
per
competitive forces.
tion is based on
the
closely resembling present
petroleum
products,
but
made
from
shale oil or coal
may be
major energy sources; but, for the
lmmediate
future
at
least, the
"The Iron
a
and
changes
cial>
Somewhat
The contract strike, short at
compounded by effects of the shutdown,
prediction
motorists will be demanding 100octane fuel before 1965. In order
sooner,
set deliveries back a week to 10 days on some products,
was,
the
of
simple
a
solar
and
energy
of the big¬
one
quality
these
and
\[ne
]ower
extrapolation of the
previous trend, and the upper poris
and there are now many commer-
tions
the
pace.
against
are up
formulations,
The
from here>
finery operations for the future,
The trend toward higher octane
gasolines will continue,, and many
cant contribu-
quarter would have
$380,000,000,000
industry producers
product
in
predic-
a
g0
These forces
sources
gait, and stated "further'
the subsequent three months. The
change of 1% or more as "sizable," offi¬
a
c y
Of much greater significane to
changes
plus
wi'n
will largely set the pattern for re-
make
place in
department considers
Pol i
s
ic
first quarter to a $375,300,000,000 yearly
sizable
I
ti(m Qf where it
the
shows
4
octane number
(Paley) ReUltimately, atom-
May
in
Maten-
port.
report from the United States Department of Com¬
a
Fig
Commission
National production of goods and services soared to a record
of close to $380,000,000,000 annually in the second quarter,
according to
the
of
level and represented one of the smallest increases for the period
in the postwar era.
rate
'continue
tQ
residual fuels fell to third place.
dent's
the
during
-
"^rs hasten in octanenum-
de-
mand. Distillate fuels have con-
This has been highlighted
by the release
energy.
unemployment
in
past
important change
quality
®«cttiend of-Research
requirement for products since 1951, at which time
... .
occurred
Department of Commerce, credited the upsurge to seasonal expan¬
sion in most activities and a larger-than-usual gain in manufactur¬
Unemployment
will
ing American economy is the rap-
insurance rose, more than
half of the states reported a decrease in unemployment.
Total employment climbed above the 64,000,000 mark last
month for the first time. Secretary Mitchell of the United States
Department of Labor and Secretary Weeks, of the United States
ing.
it
most
The
gasoline
petroleum
about 45% of total
Introduction
The output of bituminous
high
as
pacity.
high-octane gasoline. Concludes, whatever the demands, the
industry will meet them.
production for the country-at-large in the period
the customary week or two of vacation.
coal was
a total petroleum demand
of 11 million barrels daily by 1965. Foresees
equipment and processes because of changes in
new
for
gasoline
needs and changes
energy
U. S. refining
need of
Independence Day
operating schedules and resulted in
Lyman estimates that increased
product requirements will create
on
J
The extended
quality aviation
be used to
power a new and more powerful
type of aircraft.
Further, there
will be no significant contribution
to motor-gasoline octane quality
from excess aviation-gasoline ca¬
mand
Production
octane.
100
of
excess
Thus, the advent of the jet engine
will have little effect on the de¬
Francisco, Calif.
Commodity Price Index
in
grades
A. L. LYMAN*
California Research Corporation
_
_
pected to
account
will
and
NEW
for
Y.
*A
paper
presented
Meeting
of
stitute's
Division
Missouri.
the
at
American
of
20th Mid-year
Petroleum In¬
St. Louis,
Refining,
JULY
11,
195S
YORK
5,
NEW
YORK
page
95?
23
The Commercial and
''
&
]
(166)
■/. /
at which
America's Future in
This means, of course,
nomic trade
expand
exports we
our
time
on a
we
our
that
embracing Communism, and Reviews proposals for private
j
to
international financing.
It is
one.
One
sons:
is
that
blocks
welfare
other
nomic
timely and
that
ap-
is
as
Traffic
sidy
consideration
by
fully
of
each
these
fully.
that
"so-
driving. This
point,
and return
get lost
or
come
One
our
other
streets
but
provided for
some
way
by
Since
try.
World
War
between
exports
will, eventually, diminish and
finally cease altogether.
"Trade, not aid,"
it is
International trade may be simi-
elemental
some
say.
economics
But
that
more
trial
of
by Sen. Sparkman
Summer
Trade
the
York
address
New
Luncheon
and
York
of
the
Transportation
Board
City, June 29,
of
the
at
we
Sections
Trade,
have aid in the amount
for absorbing
sary
New
1955.
neces¬
exports,
or
the excess of
trade will reach a level
of our
less
full
to
ex-
,
popula¬
thus con¬
we
production.
fore¬
the
Amer¬
a prosperous
the totil domestic
exports to
portable supply
of goods
10%,
when
this
specific
ratio
exporting
the
end
applied
industries
to
that
was
lowing
eign
industries
sales
relied
on
for¬
indicated
Then
ries.
and
many
offers
grading machinery
30%
22
16
13
icing
of
investment
depend
of
American
portunities
investors
invest
to
seeking
op¬
funds
in
established Canadian
companies with
growth potential.
wire
service
cities
Boston
of
to
private teletype
in principal
offices
Canada
and
The
to
of
and
or
the
dependent
mining
farmer
tobacco, one-fourth of
and one-half of
are many
other Senators who
a
military
a
any
our
our
wheat,
our
rice go to
for¬
fact, since 1945, the value of
agricultural
each year
cash
annual
in
has
exports
farm
of
a
as
they
LONDON
HAMILTON
QUEBEC
NEW YORK
worried
do some "appeasing"
belligerent
are no more
feeling that
"appease¬
any
public opinion, the country
measure
"world tensions."
They
fed up on paying
are
big military establishment, for "aid to our allies."
And
agreement with Russia would be joyously hailed.
letting
any
of Russia
keep
it would soon
what she has,
the American people and there would be hell to pay.
This, at least, is the impression I get from talking with the gentle¬
on
hiil who want
the
as
to
see
"world
tensions" eased just as
you and I do.
They do not want any "agreements" with Russia or any
ex¬
What they want to see is the only show of
every
ten
of
the
due
"inaependnce,"
and
amazingly
enough
.
Joins Ohio
With Interstate Sees.
(Special to The Fin ncial Ch-onicle)
our
our
N.
CHARLOTTE,
Allen
become
has
Interstate
Commercial
(Special
C.—Edmund
affiliated
Securities
National Bank
DAYTONA
BEACH,
Corp.,
Bldg.
Cn
least
way-
impora
to The
COLUMBUS,
Deegan
The
has
Ohio
Company
Financial
ChlonicleI
Ohio—William E.
joined
the
Company,
staff
51
of
North
High Street.
Now Guss Securities
Fla.—Se-
curity Associates, Inc., have
welfare—indeed
Continued
at
It's the
.
Critical
Another point equally as
tant to
will,
our
of
,
on
that in
things have gone in the past.
total
our
necessity
Dependence
they
temporarily, probably be hailed by us as democracies.
with
the
In that event, you can rest ssured
time there will arise bandit leaders in those countries to give
them
A.
clear
satellite countries.
One
income.
Imports
KITCHENER
are
fear that Mr. Eisen¬
equaled
about one-eighth of
EMpire 4-0161
CALGARY
a
man, may
These Senators
Security Assoc. Branch
VANCOUVER
He has gotten himself
cot¬
our
eign markets.
Our
WINNIPEG
McCarthy's speech was
another, the Senator has given the im¬
good faith which Russia can give: withdrawal of her troops from
export markets.
OTTAWA
or
is
maintaining large and expanding
MONTREAL
enough, and perhaps, he
home to roost.
stands, and
dawn upon'
consumption. Even these few facts
WEST, TORONTO, CANADA
of
of fact, Secretary
matter
a
Then, however, if this agreement were based on any "appease¬
foreign
upon
come
relief from
a
taxes for
make
50 KING STREET
As
couple of weeks later stated these same
forthcoming conference. They have
As is
wants
farmland is producing for foreign
Head Office
a
our
production, one-fourth of
acre
Inquiries invited
things and they were what Senator
warlike than he is, but they are
men
of
More than one-third of
ton
First
Corporation, New York.
speech
pressions of good will.
In
Our facilities include
a
Nevertheless, there
about the
exports for the
one-tenth
welfare
equally
their
essential
talking about.
that category.
19
construction
our
which we now have
'
•
untimely and somehow
9
upon
about
bounda¬
to take our troops out of Ger¬
He did not state them out loud
ment" will
machine tools, and about one-fifth
The
requirements
the
are
was
essentials.
sales.
the
agree
should not have, just as, perhaps, Senator
most
of
serv¬
easily
dismantle the air bases with
to
McCarthy
much
complete facilities for
could
Russia surrounded.
23
We
withdraw their
In other words withdraw her troops to her
we
at the Summit Conference.
■'»
get together with the Russians
way we can
hower, strangely enough
centages of production:
Earth
nation in
most powerful
per¬
equipment.
Since 1921
...
the
as
accomplishment.
an
tic countries.
the fol¬
1952,
for the
of
rescue
lot of selling to the American people that
a
pression that he didn't mean any good by it.
in
the
went to
we
at the Summit Conference is for them to agree to
ment,"
Underwriters and Distributors
of
Canadian Investment Securities
whereby
with Russia
up
Obviously the only
.
in
sale
;
turned
as¬
proportions.
example,
the part of any
however, that the whole cold war has been
situation
It would take
Europe.
State Dulles in
much deeper and significant
For
of world
relief
the
and
ex¬
is only
Cotton textiles
</
the
over
These
Refrigerators
'
prosperity
but
tremendous accomplishment on
Britain, France and Russia in World War II against Hitler and in
export trade.
While the ratio of United States
Trucks and buses
.■
terms,
a
troops from Czecho Slovakia, from Bulgaria, Poland'and the Bal¬
machinery
Typewriters
(
political
primarily
employment is de¬
great degree upon
a
unbeatable in
relieved these tensions and with the country
our
as
own
consumptive capacity.
Certainly, at least in
with
world
regardless of politics.
man
productive capacity may be'
as has been true in the
past, to continue to outstrip our
ica
Bargero*
Carlisle
The
peace.
relieving
upon
Politically speaking, it would make him
The fact remains,
Textile
■
bent
after having
tensions would be
Y
do with
obviously
these
in
increase
who say that we
some
is
seeping with prosperity. I doubt that Mr. Eisenhower things of it
America, we
our imports
America.
are
Eisenhower
Y 3,289.4
Tractors
LIMITED
about what agreements
make at the "Summit Conference" in his
may
expected,
•
McLeod,Young,Weir & Company
The fact is also that most of them
concerned
The other side of the coin is that
no
tually exclusive conditions. E'ither
Indus¬
jective.
,
our
aid and not enough trade are mu¬
*An
Annual
few Senators
1956,
increases, and
sumes
$35 billion in economic aid.
fic
are
tensions.
to
is
trying to do.
was
3,442.0
ports in the future
gold
'With
II,
to what he
happens that there
so
3,411.1
wish
it
as
in this instance who do not agree with his ob¬
our
of
as
It
the maintenance and expansion of
imports by
and
agreement
com¬
was
high flow
McCarthyism,
so
man
we
fellow
happens that it may be another
instance of McCarthy's "methods" without dis¬
me
wars
European gold reserves greatly re¬
duced, we have bridged the gan
is
return trip the traf¬
a
exports
a
of
3,347.8
able to
pendent
world
bullion from Europe to this Coun¬
for
work
may
unless
two
of
excess
pensated
lose interest in waqting
way
the
Between
back.
while,
commensu-
end
anxiety to accomplish what is called
purchase seeable future,
to
without
rately exporting to us.
few
a
over some
be sustained
the
Imports
to Latin
are
his
of
3,371.4
be
sume
esteem
they said, just about the
McCarthy's influence in the Senate and
But it
these figures it seems ob¬
Latin
tion
the
in
3,133.6
exports
may
sunk
3,479.9
if
its satellite countries, the
up
This meant,
3,740.9
There
imports, and
can
necessary
exports
our
given
a
business
funds
the
In doing so, you may either
ntreet.
a
to
must go around
you
corners
to
back
come
success¬
by having the nation as a
whole, through governmental ac¬
tion, provide other nations with
but while such traffic may go fast,
It all goes in one direction. If you
to
sub¬
a
producer
cannot
with
compete
gifts.
only
be true,
may
domestic
products
of
ume
claim
experts
the
of
thus
are
be
must
loans and
(he exporter whose high vol¬
of
one
way streets" prevent
congestion and tend to reduce haz¬
want
—
whose
called
ards of
difference
grants,
Trade restrictions
examine
us
the
in
give
called.
(Millions of $)-1—
vious that
from
that Russia
Exports
From
our
insist
had
therefore
our
shall have to increase
country's exports exceed its
a
found
Sparkman
junn
the Congress.
more
If
imports
A,
under serious
Let
"favorable balance of trade."
-
dv.il.
the vogue, in terms of
once
was
a
legisla¬
points
pillars
he
end of
some
1.951
It is illusory to talk,
exports.
and
tion, designed
to
provide
more
stability
in world trade,
is
the
of
interested
political leper, re¬
a
was
Senators.
the
to
exports to Latin Ameri¬
can
have just about equaled our
imports.
'
^ \
1951,
long-term equalization of imports
Fed¬
new
Mr.
of interna¬
tional economic trade policy is the
is
propriate
eral
One
low
checking of my
concerning this point.' I found
Holland
to
be right.
Since
own
Exports
reason
subject
eco¬
traffic.
free
other
international
our
did
I
Year
of
almost
McCarthy, currently
resolution in the Senate by which the Senate
a
overwhelmingly voted down
and the occasion was taken
by the anti-McCar¬
thy columnists and commentators to mean how
pointed out
our exports
measure
statement
That
and
Equalization of Imports and
countries. An¬
the
of
the
and
flow—-without road
detours—on the through-
or
ways
our
domestic wel¬
fare
and Trans¬
two-way
trade to
promote
Thus, you people
portation activities must be inter¬
ested
in
maintaining a
smooth
have
must
we
conferences
resolution
Mr.
Inter-American
America
Latin
cently introduced
by our quantity of imports
from Latin America.
in Interantional Trade
rea¬
expand¬
ever
ing
for at least two
so
could
we
Senator Joe
would have demanded that the President at the forthcoming Geneva
Secre¬
Assistant
Holland
Mr.
By CARLISLE BARGERON
When
dollar
larly described.
subject, "America's Future
timely
My
fn International Trade," is a
Holland,
a
tary of State for
Affairs.
to keep them from
as
195234
Henry
problem of maintaining
I
am
by
member,
which
we
may
to husband our gold reserve. Cites
trade with Japan and Indonesia, so
j
1!
and loans, our
export trade necessarily depends
upon our quantity of imports. This
point was made clear recently
in
testimony before the Senate
Foreign Relations Committee, of
imports
exceed exports, and
will then have
Lists a number of crucial imports we require, and hints that in
!
expect to
aid programs.
Without grants
long-term equalization
wish to maintain or
must make possible greater imports.
policy should be based
and exports, points out if
of imports
Washington
Ahead
of the Neivs
expand—our present level of
exports, we must either make pos¬
continue, and even to enlarge, our
Senator from Alabama
Sparkman, stressing the principle that international eco¬
Sen.
From
that if we
if possible
to
sible greater imports, or
By HON. JOHN SPAR KM AN*
T
exports and imports are
wish to maintain—and,
International Trade
S.
14, 1955
equal.
_
U.
Financial Chronicle... Thursday, July
;
mat-
page
ed
a
branch
Boulevard
at
under
26 Waldo Snuman.
402-D
the
open-
Seabreeze
direction
of
SALT
The
nick
firm
Co.,
LAKE
name
165
CITY,
of
Guss
East
Utah
&
Third
—
MedStreet
South, has been changed to Guss
Securities Company.
Number 5446
Volume 182
(167)
Chronicle
The Commercial and Financial
...
surviving
the
!
: By ELEANOR A. KROPF*
.
pass
ning, Miss Kropf illustrates the case of an average
and how it should be planned and devised. Discusses
life
Concludes disposition
Estate
of
person's estate is not
a
a
common
it
is
remains
has
has
Of course that
each of US
no matter how
husband.
my
not
is
estate and neither
because
true,
estate
an
The
Small.
-
clothes
very
personal effects
as
to dispose
of
and
putation
,
in-
...
ds
t a
provision
a
something like the following:
survives
it
(or
me
_
all
be),
may
clothing
personal
use
J,ooo
2,500
..
y,
j
my
•
and
and
certain
it would appear that he will
—
P™!?akjy want a simple type of
Will.
it
have
,
,
be
have
some
antique that
family for gen-
will
daughter
little
no
given
to
,,
of
.
your
insurance,
effects, house-
you
,
of
at
...
hing a little later.
«
must
......
in
-
writing,
domicile
trix—the
the
.
,
Will
.
,
talk
.
The oidinary Will is
is
dated,
of the
man
—
T
s
me
,.
mu
.
or
it
that
......
Will
the
testa-
making
woman
states
Last
states
testator
or
,
and
is
^
the
.
Testa-
his children
to
would
in
provision always found
a
Will
—the appointment of his Execu-
duties
of
which she has
no
many
an
New Issue
by
his
has
AM
his
he
attorney
corporate fiduciary settles estates
in and day out and is ex¬
perienced
in
practically
every
problem that can arise in the ad¬
day
ministration of
an
estate. In addi¬
retain outside assistance to obtain
debts,
undertaker's
clude
and
funeral
of his last ill¬
ness, administration expenses
which may include her own fees
as
executrix, possibly attorney's
expenses
expenses,
fees
and
various
her
prepare
tax
If
returns.
Federal
AM's
after
there
Tax
Estate
estate,
months
husband's
estate
any
were
due
on
turns
it would be due 15
his death and the
y Inheritance' Tax
due within 12 months
have
been filed,
executrix
total
thus
acts
company
the
an
fees
of
a
as executor. As to
corporate fiduciary,
executor's
fees
are
statutes in most states
the
a
wife,
set by the
whether
so
other individual or
some
corporate fiduciary is named as
executor
But
fees
the
are
the
who
man
fiduciary
as
names a
his
corporate
executor
the death taxes on his estate will
j
about
don't
the
to
want
they
are
may
proceed
of his bank
or
trust company who
ing estates will take a deep ancl
to
Continued
on
page
ojan ojjer to buy securities.
July 13, 1955
Texas Eastern Transmission Corporation
Inheritance taxes
so
Estate
Price $100 per
share
plus accrued dividends from June 1,
1955
Copies oj the prospectus may he obtained from such of the undersigned (who are
among the underwriters named in the prospectus) as may legally
ojjer these securities under applicable securities laws.
Dillon, Read & Co. Inc.
BIyth & Co., Inc.
Glore, Forgan & Co.
Kidder, Peabody & Co.
Lizard Freres & Co.
Corporation
and
I will merely
Under the Federal Estate Tax
an
of
exemption
allowed
death
so
you
can
Goldman, Sachs & Co.
that
since
his
Tax
due
gross
at
estate
Merrill Lynch, Pierce, Fenner &
our
man's estate will have
Estate
Lehman Brothers
Smith, Barney & Co.
no
Stone & Webster Securities
Union Securities Corporation
Corporation
his
is
Dean Witter & Co.
White, Weld & Co.
the New Jersev Inheritance Tax
an
Beane
is
$60,000
see
.t ™lu«d 3t >eSS tha? f°'«C0- U"d«
b,
Bank, N. J.,
$10Cj per Share)
touch on it briefly.
Federal
1955.
Preferred Stock, 5% Series
get technical
of
subject
the
spend their full time administer¬
160,000 Shares
The First Boston
is
knowledge that the trust officers
v
will
same.
perhaps of most importance
to the
ojjer ojsecuritiesjor sate or a solicitation
(Par Value
ex¬
of administering an estate
be less when a bank or trust
After the tax re¬
audited and the taxes fixed. Then
the
may
Mr.
Nejv' Jerse
be
and
usually must
penses
property previous to his death.
After paying
all of her hus¬
band's debts, Mrs. AM will have
to
executor
services
these
AM's
Mr.
on
individual
and
costs
court
assessed
taxes
all
Will
undoubtedly ?sk h!m Ust what
of
knowledge. The
his wife his Executrix,
Mr.
in¬
executrix
an
will assume that Mr.
we
names
average
Red
This announcement is not
to
In addition Mr. AM s Will
a
most important
distributive
June 28,
relating
contain
disposing of his property
Bank,
herent
actual administration of his
provides
National
as¬
Will
a
responsibility and of the
equal shares,
in
provisions
technical
clauses
Second
have
had
corporate fiduci¬
a
which may in¬
his
of
all
wouicj aiso contain some
ment,
—-—
"Wtroaif's Fhianc^al
we
By naming
rather than his wife, a man is
relieving his wife of an unfamiliar
ary
his property
all of
that
provide
drawn
starting point let
a
,
has
Man's first
Average
our
When
Wills
As
since
laws of the State.
readily available at all times. An
executrix—prepare
after his death.
he
the Tax
of income to send income
as
would
Going back to our case of the
man
en¬
taxes, investments, accounting, re¬
search
and
other related
fields
probably be quite short and
AM
into some of these now.
,
does
thought is for his wife, his Will
estate.
.
,
.,
about Wills.
inherit¬
and
New .Jersey
creditors.
to request
or
an
his
if
wife is not living at his death. I
wjn speak further of life insurance as it is related to estate plan-
estate
factors
many
.
estate
but
assets
whether
decide
to
advertise for
requirements
which he
insurance
beneficiaries
contingent
be considered and I would like to
.
in the computa¬
the payment of death taxes a'nd
own.
may
,
Ufe
hag
any
objectives for the disposition
assets
taxes
have
legal
be given to his wife; or, if she did
arrive
can
we
of«their
She will
estate, his
the real
to
bank
a
executor and/or trustee under the
expressed
fulfills
her husband's
to
which has complied
abling it to act in the capacity of
she
as
refers
not survive him, that it be given
business interest,
,.
our
Man
real
arrangements which will achieve
our
insurance available to pay off the
mortgage.
Like most Pe°Ple 0lir Average
accounts,
bank
...
cash—anything
Before
whether
securities
bonds,
all kinds, a
and
tion
he
as
all
I
Here
Going on with our assumption
,
,
estate
,
,
stocks,
have
automobiles,
furniture,
estate,
will
all of your
.
they are personal
hold
have been
$9,340. At the present time some
states also allow a marital deduc¬
tion of this type
with
of
executor
might
the term "corporate
trust company
his
named
Wills.
mention that
fiduciary"
away.
AM
their
name
instead
as
of insurance equal to the mortgage ancj known as mortgage life
significance.
form
Mr. Y's estate would
Mr. Aver¬
our
executrix.
as
of
to
her
to his children in equal shares as
your
given to
or
„
assets
Act
Revenue
not.
pr0bably has made payable to his
wife as primary beneficiary, and
..
,
it
whom
all know,
you
,
on
but
that
for
providing
disposed
or
As
js
1948
this marital
deduction, the Federal Estate Tax
ance
you
If
die.
you
be
make
make
to
to
want
want
your
when
for
owns
not free
the
which, first permitted
His
a home.
and clear
and
Of
ment
Prior to the enact¬
if he were to pass away
,,
someone
go
As we can see, he has
paid off there will be an amount
daughter, it may well be that it
will
his
that
Federal Estate Tax due
drawn,
you
to
,
assume
desire — to
usuai
tlie
no
his estate.
he dies before the mortgage is
time of my
you
Will
no
antique
will
We
provide
firSt for his wife and then for his
-g
on
that
vnu
that
receive
and one 22
will be
average
in your
pratinnc
erations
and
deduction there
sumed
especially treasured
been
wife
the
ranged his life insurance that if
,
has
$3^500
.
a
by the amount of his debts,
administration expenses, the Fed¬
undoubtedly he will have so ar-
at the
perhaps
has
children—one 25
jj0me
„
Or,
he
assume
under
we may
act
to
praised and valued as of the date
of his death. Then she must pay
of
articles
which
Will
will have
say
maximum marital
estate
inventory of the estate which in¬
volves having Mr. AM's assets ap¬
ex¬
eral Estate Tax exemption and
an
com¬
consideration for
fiduciary
wives
her
or
of the
tion, the corporate fiduciary pro¬
vides custody and investment
services
has
and
specialists in
to
estate
Effects and Automobile
will
sources
$5,000—or one-half of $120,000.
After
reducing
his
gross
^-v-—-
his
on
because
out of deep
their
Department in Washington to au¬
dit all income tax returns filed by
her husband—send notice to all
1,000
Accounts
all
not
She
adornment that
or
own
may
.
of
Bank
is
corporate
a
to some of
insurance
She
or
3,000
Government Bonds-
g
y
effects
..4—_i„„
r
other
and
I
15,000
the usual personal and household
whomever
to
.
.
.,
on
policies, stock cer¬
tificates, bonds, and bank books.
of this
administration
and
duties
life
other than estate taxes of,
penses
his
—the deed
estate—$125,000—less debts,
gross
in
locate
marital deduction permitted
would be equal to one-half
Mr.
wishes
his
her
equal to
funeral
Life-insurance.———
bequeath to my wife, if she * children.
"I
'
_
that
them
of the Federal Estate
property passing to a sur¬
amount
$10,000
two
read a Will
.
.
,
.eluded
go
Man has passed
out
com¬
viving spouse and the maximum
marital deduction permitted is an
$15,000
5 ooo
—
Mortgage
an(j
usually
is
there
that
know
me
wife executrix and she will carry
deduction." It
deduction allowed in the
Tax for
Mr. Average Man's Estate
fit. Those
see
as we
of you who have ever
,
,
ours
are
let
recall
passing, just let me briefly
mum
constitute what are known
backs
as
listed below:
our
on
is known
what
define this "marital
a
and
It is at
this point that the administration
of his estate is begun. You will
"marital deduction."
In
is
deeply
If we take the case of an
Average Man whose assets are
Home
no
Next
the problems with
with
It
uncomplicated
and
job
a
you can see
Executrix of
plexity of administering
Administration
Estate
de¬
ductions for such things as debts,
the
hands.
Hence, the importance of
Will and dying testate.
has
or
their wives that many men
one-half of the
gross estate less debts, funeral ex¬
penses
and
administration ex¬
penses other than estate taxes. To
indicate how important this de¬
duction may be, let us take the
case
of Mr. Y, who has a gro:s
estate of $125,000 and is leaving it
all outright to his wife. The maxi¬
Less;
do—"I have
allowable
consider
small
a
estate
a
involved
people
many
say—as
may
having
Generally speaking an individual may dispose of his property
by Will to such persons and for
such purposes as he pleases provided his disposition is not in
violation of - the law or public
policy. And here we meet up with
wishes.
wiaiics.
You
on
age
after your death
by your executor whom you select to act for vou "nd»r a w;U
which provides for the disposition
of your estate in accordance with
VOUr
yuui
1%
be confronted after
and
need
may
wishes.
be
even
or
not
does
the law—State law, because the
disposition of property after death
is restricted in some respects by
wishes in regard to the disposi- the State—the laws of the State
tion of your estate can be carried
in which we reside governing in
out during your lifetime by you the case of personal property and
yourself with the help of what- the laws cf the State in which it
ever
legal, tax, investment, in- is located governing in the case
surance
and trust specialists you of real property,
estate
on
decree closing the
a
signed by the Court and
distribute his assets.
From the foregoing
distributed
$165. This is a tax com¬
putation in its roughest form and
As a result of
planning your
economically.
will
be
and,
that the Executor
likely his property would not
according to his
very
tors' fees nor does it get us
people. Actually, there is
nothing mysterious aoout esiaie
planning. Very simply it is the
devising of means whereby your
objectives for the disposition of
your property during your lifetime and at your death will be
carried out most effectively and
careful
estate
AM's
$16,5C0
residence.
the State would make his Will and
Tax
Inheritance
his
of
administration expenses or execu¬
many
most
State
she may
of the
In effect,
intestacy laws
two witnesses,
to
mystery
a
Jersey
Mr.
,
and is signed at the end by the
testator in the presence of at least
has
become
phrase but just
Planning
quite
what
New
simple matter
a
New
wife is
a
policies in estate planning.
insurance
The
$16,500.
amounts
briefly Estate and Inheritance taxes and the problems of estate
administration. Covers the subjects of trusts and the benefits
under
only
estate is
notify
her
if there is
share in
may
estate
objection,
no
accord¬
beneficiaries
the
who
everyone
husband's
would
estate
his
case
his
to
ing to
Inheritance Tax rate on
up to $50,000 passing to
1% so you can see the
Jersey
estate
available
is
estate
the
were
missible
plan¬
man's
Pointing out there is nothing mysterious about estate
we
"testate"—that
Chase Manhattan Bank
Estate Planning Division, The
{
make her final accounting,
would say he died
is, he left a Will.
If he had left no Will, we would
say he died "intestate" and if that
tomorrow,
Tax, after allowing for the per¬
exemptions, his taxable
Planning
Estate
and an ex¬
spouse
is allowed for all life
insurance passing to named bene¬
ficiaries. Therefore, in computing
Mr. AM's New Jersey Inheritance
emption
7
exemption of $5,000 is allowed
/
I
lu
The Commercial and
8
July 14, 1955
Financial Chronicle... Thursday,
(168)
Company—Analysis—Newburger, Loeb & Co.,
Ilarris-Seybold
Dealer-Broker Investment
Corporation—Annual report—The Lehman Corpora¬
Lehman
It is
understood that the firms mentioned will he pleased
to send interested parties the following literature:
Street, New York 4, N. Y.
Company—Report—Loewi & Co., 225 East Mason
Milwaukee 2, Wis. Also available is a memorandum
Analysis in current issue of "Weekly
Securities Co., Ltd., 6, 1-chome,
Nihonbashi, Chuo-ku, Tokyo, Japan.
tin"—Nikko.
ton
latter
of July—copies available at "bulk" rate of $8.09 per
through Blair & Co. Incorporated (Att.: Mr. George
part
copy
in publish¬
ing and promoting books—Vantage Press,
Office
Securi¬
65 West 44th Street, New York
—
sity.
10, Mass.
lanta, Merrill Lynch, Pierce, Fenner
and Beane in Macon and F.
Eberstadt
Co.—Memorandum—Herzfeld & Stern,
York
price indexes for Chemical industry common
Street, New York 4, N. Y.
30 Broad
Win. A. Read, Jr. With
Byrne and Piaelps
stocks.
Japan—Circular—Yamaichi Secu¬
Co., Ltd., Ill Broadway, New York 7, N. Y.
Investment Opportunities in
rities
Canada—Bulletin with particular reference to
in
Investments
British American
Steel
Dominion
Oil, Canadian Breweries, Canada
&
Cement,
Byrne
Notes
NSTA
Mining Corp.
McKinnon, 11 Wall Street, New York
Movements—Analysis
Price
Commodity
Japanese
in current
Digest"—Nomura Securities Co., Ltd., 61 Broadway,
New York 6, N. Y.
"Stock
Trends—Bulletin—First National Bank of Boston,
New England
Boston, Mass.
Stocks—Comparison and analysis of 13
New York City Bank stocks for the second quarter of 1955—
Laird, Bissell & Meads, 120 Broadway, New York 5, N. Y.
York
published its
Copies
of this humorous publication can be obtained through Edward L.
Kirkpatrick, Jr., Clark, Landstreet & Kirkpatrick.
Nashville Security Traders Association has
The
connection with its annual outing.
"Union Suit Journal" in
National
4,
N.
up-to-date
We
that
com¬
Mr.
Read
—
Financial analysis
—
Manhattan
are
our
The Chase
Unfavorably
Situated
considered
on
tion for
with
us
advertisement
York
Upham &
Springer H. Brooks
Springer H. Brooks, partner in
half
a
for
(Special to The Financial Chronicle)
Stocks—Special list of
unfavorable—with
88
70
over
will
Pine
L.
E.
Street, New York 14, N. Y.
us
is
have
B.
National
c/o
yet?
time
.
If
to
so,
work
answers
about
to most
stocks—Gatling Associates,
New Brunswick, N. J.
common
Albany
115
ques¬
Street,
$
Broadway, New York 4. N. Y.
Friedman & Co., Inc., 52
52 Wall
Company—Analysis—Van Alstyne, Noel & Co.,
Street, New York 5, N. Y.
Maine
Power—Report—Ira Haupt & Co., Ill Broad¬
New York 6, N. Y. Also available is a review of General
American Transportation.
commercial ads for this
Eagle Picher
Co.—Memorandum—Walston &
Co.,
120 Broad¬
New York 5, N. Y.
District
Pershing
&
Co.,
Grace
&
Maurice
Hart
Cameron
Boyd J. Easton, City Hall Build¬
ing.
120
Broadway, New York
With D. N. Silverman
5, N. Y.
1955. There is swimming or sun bathing at the pool or
beach, two golf courses, tennis, shuffleboard, softball and other
11-14,
There are no automobiles on the Island. Transportation
by carriages, bicycles or rolling chairs.
The Grand is on the American Plan and all Convention activi¬
is
ties;
cocktail parties, etc. will- be held at the
gratuities will be assumed by the Convention
banquets,
Dining
room
hotel.
Com¬
ORLEANS,
Richardson is
M.
Silverman
ing
The
Electric—Data—Bruns, Nordeman
&
Co.,
52
are
data
on
Co.
—
Memorandum
—
McDonnell
&
Co.,
120
Arcade.
With Donovan, Gilbert
(Special to The
Financial Chronicle)
-
SAGINAW, Mich.—Benjamin J.
Marxer
is
with
Donovan,
Bearinger Building.
now
Traders Association of Detroit and Michigan
reception, Sunday evening, Sept. 11. The meetings
been scheduled for Monday and
Security
Wednesday
a
mornings, Sept. 12 and
luncheon, at which
14, and will be followed by
time prominent individuals will address
the
group.
McDonald, Jr., Detroit, will be Chairman of the Golf
Tournament and Leslie B. Swan, New Haven, will act as Chairman
of the Tennis Tournament. Tuesday the 13th has been designated
day for sport and
a
been
relaxation and no business meetings have
view the progress
planned. Arrangements are being made to
Uoratroi J&jemriltes
ffio., Xtd.
on
page
16
Bought
——
Sold
—
DEPENDABLE MARKETS
United
Y.
Security Dealers Association
Japanese Stocks and Bonds
Trinity Placet New York 6, N. Y.
NY
1-
376
61
Branch
obligation
BOwling
Head
Green
Office
States
9-0186
Tokyo
—
ganization
and
Savings
of
of
the
on
Government
—
Documents,
Of¬
fice, Washington 25. D. C.—pa¬
per Vol. 1—$3.25; Vol. 2—$1.25.
U.
DEMPSEY-TEGELER & CO.
the
(in 2
Or¬
Executive
Commission
Superintendent
Broadway, New York 6, N. Y.
Tel.:
31st
West
Water Resources and Power
volumes)
N.
120
North La Salle
Street, Chicago 1, 111.—paper.
on
Members:
Inc.,
Press,
Loan League, 221
Material and Consultation
without
CN
Booklet
Savings and Loan Fact Booki 1955
—
Troster, Singer & Co.
—
Street, New York, N. Y.
Broker and Dealer
Quoted
Manuscripts
describing service in promoting
and
distributing books—'Vant¬
age
N.A.S.D.
Member
Publishing Co.
74
v/ith D. N.
the National Committee have
Continued
Crowell- Collier
2400
La,-Charles
now
Co., Inc., Shell Build¬
Gilbert & Co.,
mittee.
of
NEW
Book
2-
-
(Special to The Financial Chronicle)
Broadway, New York 5, N. Y.
HA
/
111. —Gerald M.
has joined the staff of
ROCKFORD,
Security Traders
Association will be held at Grand Hotel, Machinac Island, Sept.
as
R.
Boyd J. Easton :
Harry A.
Wall Street,. New York 5, N. Y.
Also available
Merck, John Morrell and National Distillers.
W.
&
(Special to The Financial Chronicle)
Chairman
Committee
SMITH,
Advertising
will be hosts at
Chicago Pneumatic Tool—Analysis—J. R. Williston & Co., 115
Broadway, New York 6, N. Y.
Edv/ards
Street.
NSTA 22nd ANNUAL CONVENTION
_
Brown Rubber
G.
on
games.
Bonanza Oil & Mine—Report—L. D.
A.
Maine
336
Joins
you
The 22nd Annual Convention of the National
What About Stocks—Leaflet of
with
now
Sons,
,
111.—Errett M. Lyter
QUINCY,
year's issue.
Walker
HAROLD
switch
suggestions—avail¬
special introductory offer of three months subscrip¬
$18.00—Standard & Poor's Corporation, 345 Hudson
*
City., has also given
reservation
/
stocks
100
New
Have you made your firm's
1
Ryan, Inc.,
*
With A. G. Edwards Sons
Conventiofi issue.
Corporation,
Min¬
& Hopwood,
our
order for an advertisement
some
Park,
a
the
in
of similar size.
of Daystrom Incorporated.
—
S.
U.
neapolis, passed away July 6.
Hanseatic
Analysis — Sutro Bros. & Co., 120 Broadway,
5, N. Y.
Also in the same bulletin is an analysis
— Analytical
bulletin
Street, New York 5, N. Y.
the
Commander
Lieutenant
pleased to announce
fellow member and
placed
NSTA
—
Thruways
with
Piper, Jaffray
an
New York
served
has
Bank-, 18 Pine Street, New York 15, N. Y.
Shoe Industry
and
Navy in World War II and is
,
Portfolios—Study of 10 sample portfolios—Harris,
Co., 120 Broadway, New York 5, N. Y.
Empire
depart¬
friend, Lou Walker of
National
Quotation
Bureau,
•
way,
sales
with
R. D.
White
prior thereto with
The City Bank Farmers Trust Co.^
Co.,
Maurice Hart of New York
Y.
Petroleum Industry for 1954
way,
associated
LIBBING
page
Central
their
A.
William
that
become
reserve.
AD
market performance over a 13-year period —
Quotation Bureau, Inci, 46 Front Street, New
and
tions
in
and
good
able
has
Formerly
NASHVILLE SECURITY TRADERS ASSOCIATION
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
York
Jr.
them
with
City Bank
Over-the-Counter Index—Folder showing an
yield
announced
have
dealers,
bond
Municipal
City,
Incorpo¬
ment.
5, N. Y.
New
Phelps,
and
Wall Street, New York
rated, 44
Read,
Coal, Gatineau Power, and
of Canada—Thomson &
New
Company in
and
City.
14 Wall Street, New
are
of Georgia in At¬
Trust Company
Industry—Price indexes—Smith, Barney & Co.,
York 5, N. Y.
Also in the same bulletin
Drug
S.
U.
being
discharged as a major in 1946.
Prior to joining Johnson, Lane,
Space, he was associated with the
'
5, N. Y.
Westinghouse Air Brake
the
in
served
Hill
Army during World War II,
Virginia Turnpike — Analysis of operating results and
future trends—John Nuveen & Co., 40 Wall Street, New York
Seaplant
New Bedford, Mass.
Ethical
10 Post
West
for SeaKem Colloids
brochure — Byron
Chemical Corporation, 63 David Street,
(derived principally from Irish Moss)
Co.,
illustrated brochure—
McCoy & Willard, 30 Federal Street, Boston
36, N. Y.
Colloids Out of the Sea—Describing uses
&
Mr.
Uranium Corporation of America—New
ties Market—Newling & Co.,
Spence,
views—Lerner
Boston 9, Mass.
Inc.—Memorandum—S. D. Fuller & Co., 39
Broadway, New York 6, N. Y.
Letter—Fortnightly review of the Canadian
Canadian
Co.—New
banking
Georgia Tech and has had special
investment
banking training at
Mercer and New
York Univer¬
Union Chemical & Materials Corp. and Arm¬
Cement
Square,
has been
is an alumnus of
He
1928.
since
Schmieg Industries,
Inc., 120 West 31st
Street, New York, N. Y.
past four years, Mr. Hill
active
in
investment
.
Rubber Company.
Riverside
Y.
Manuscripts—Booklet CN describing service
Book
ing & Refining,
strong
firm for the
of the
member
A
Light—Analysis—Bache & Co., 36 Wall
Also available are data on Olin
Chemiccal, Merck & Co., U. S. Industries, Inc.,
Shamrock Oil & Gas, Beaunit Mills, Inc., American Smelt¬
Stocks—1955 Edition available
Geyer), 44 Wall Street, New York 5, 6.
banking firm.
Mathieson
7, D. C.
Best's Digest of Insurance
is
it
Thomas M. John¬
by
President of the investment
son,
New York 5, N, Y.
5, N. Y.
Street, New York
different companies—Atomic Develop¬
Securities Co., 1033 Thirtieth Street, N. W., Washing¬
announced
Citi¬
Inc.,
Building,
Southern
&
zens
Company,
and
Space
Stock Bulle¬
Kabuto-cho,
Co.^Analysis—Peter P. McDer-
Coke & Chemical
Co., 44 Wall Street,
Puget Sound Power &
atomic activity of 97
ment
Ga.—Carl E. Hill
promoted to Assistant
Vice-President of Johnson, Lane,
been
has
Globe Union Inc.
on
OJI Paper
Pittsburgh
(revised)—Describing and locating
Johnson, Lane, Space
ATLANTA,
National Tool
mott &
Atomic Map, in four colors
*
tion; 1 South William
Street,
Recommendations & Literature
Carl Hill Officer cf
York 5, N. Y.
Street, New
15 Broad
S.
of
Government Printing
Number 5446
Volume 132
...
The Commercial and Financial Chronicle
(169)
Let
Adjustments in
give you a theoretical
General Motors had an
me
example.
the
old
people
wanted
continued.
General Motors arrived at his of-
abandonment
fice
morning about 11 o'clock,
Shortly thereafter his controller
several
entered
of
Railroad Regulation
By RICHARD F. MITCHELL*
Chairman, Interstate Commerce Commission
lation to bring it up-to-date by adjusting it to recent
are
longer
no
should determine pricing of
services.
are
and
changes.
competition
railroad and other transportation
not
Our
§hd
adjusting railway rates, and denies
furnishing improved and adequate services.
Concludes
"Mr.
ago.
Scores delays in
railroads
monopolies
with
some papers in his
President," said he,
"we are losing money operating
the one-cylinder Cadillac factory
building. It was built 40 years
hand.
ICC Chairman finds need for revision of transportation regu¬
Says railways
one
other
be
engineers,
experts tell
successfully
cause
-
machinists,
us
it can't
operated; now be-
it is out of date.
The presi-
they
it.
A
a
They
had
Thar is
between
try and
ovpf
for
on
railroad
only that,
but
in many instances (and I can
cite
regulates
one
a
the
them), regulated industry is required to put up with a lot of
as "petty" regula-
tion;
suf-
and
The
differ-
regulated indus-
not regulated.
injurious to the regulate^
no
help to the public.
story
of the one-cylinder
of
took
to
factory
private
is
typical.
industry
down
tear
took
the
old
one
It
week
factory.
It
industry
more
to abandon a
regulated
than three years
branch line as worthless and
unregulated
industry.
A
short useless as the one-cylinder Caditime ago U. S. Steel, one of our lac plant,
largest corporations engaged in
Again,
ference
to
emphasize
between
the
dif-
regulated
and
dehT of ^^eraLMotors"replied th?1mnnrtw!2k tngagedf in
"regulation is absolutely necessary."
Not
what I refer to
quarter
a
it.
dollarsfoperating that Cadillac
branch line.
ence
went
The
of
it,
use
held, and the
case
loss
a
operation
not
attachment for
was
years.
million
did
an
hearing
fered
community
,
railroad
plant out in Detroit where
they manufactured the one-cylinder
Cadillac.
The president of
but
the
of
the
9
change in
*ace .of
Bu*
PIZ vwLPPPl
important work of maniifac- transportation from a monopoly
r.ail,llJe „p /
nere. we ean t turing steel, entered into a agree- to a competitive system, I find
P operate one ot pur tac- ment with its hundreds of thou- regulatory laws and interpreta¬
.
like to discuss
views upon regulaare
my
individual
Today I would
with you my
tion.
They
,
views—not those of the
sion.
let
attention to the fact
the
In
'
that
at
beginning
very
call your
me
time have I
no
Commis-
advocated
deregulation, nor do I now.
What I really advocate is more
regulation. You hear the cry, "We
don't need changes in regulation."
But I say to you, when we regu
late only one-fourth of the trucks
upon the highways of the nation,
when we regulate only about 10%
of the
water carriers upon the
-
waterways, in reality we are not
regulating
transportation.
T h e
great bulk of it is free from the
handieaps and the difficulties of
regulation. 1,400,000 trucks upon
the
highways and only 350,000
subject to regulation, and you tell
me
don't need to bring regula-
we
tion
If regulation is
trucks, it ought
to be good for the better than one
million unregulated trucks as they
speed down the highway.
I believe in bringing regulation
to date!
up
good for 350,000
to date, and I am not alone in
up
idea.
this
President
appointed
Eisenhower
committee, known
a
as
the Cabinet Committee, which has
made a report to the President.
railroads
The
did
not
make
the
report, neither did the airlines nor
the truckers. The report was pre-
books, but in the 30-year interval
the transportation, industry has
completely changed. It is now a tones at a loss.
in came the head sands of employees, granting wage
highly c o m p et it i ve business.
^
engineering department, increases. I know nothing about
Where we found the rails alone ot the accounting department, and that labor dispute, nor the amount
30 years ago, today we find a ]j*e construction forces. The presi- 0f the wage increase.
It was a
great trucking industry has en-matter for U. S. Steel and its
tered
"" ""
-
'
t-
.
to
It
olavs
part
portant
im-
and
a
the
in
transporta-
tiort facilities of America
for the
service
with
out the trucking industry this na-
8^servef
p s* Dy
p
A
e
bus
° *
satls*act°ry settlement. But, , on
the very next day U" S' Steel
At
JL announced [t was increasing the
price of the Product manufacemployees °j General Motors tured $3 a ton. This increase, it
that6 Ip Srfpr Sill IT was explained> wa* necessary to
Jbat one-cylinder Cadillac fac- cover the increased costs of the
y*
labor settlement. U. S. Steel had
MntofV
n
About the
same
year
General
right to do
a
that.
But
suppose
water?arriGL Motors built its one-cylinder
Cad- U. S. Steel had been a regulated
onpratp
in
o;rtain Darts of
lllac factory, a certain railroid industry, as are the buses, the
°p a
p airDlanp i<; built a branch line approximately trucks, the rails, and the water
pnDahly' of transoortine neoole 70 miles long out in my country carriers. They can't increase the
Hv thp thousands from New York ~~the middle westA coal de" Price of their product—to wit,
* ra7ifnrnia an^ all nart<! nf thp Posit had been discovered and service — without first securing
° nfrv 0n'lv
fpw WPGks
the railroad company believed a consent from the Interstate ComJ' ~ J V* aviatnrs atn branch lme could be operated merce Commission, and the rechrpakfa„f
in
California
lunrhpd
Profitably by hauling coal. For ord of the past shows it takes
N
York
and had dinnpr that
20 years 11 dld' and than unfor- months, even years, to secure this
j*e
£ California Tomorrow tunate.ly they ran out of coal, consent.
f
/T3
•
.
For the last 20 years the branch
.
Sred to all Your friend in San line~which cost aPPr0xlmately
DelW in Adjusting Rates
*ere"-.J" ' will rail vnTirNm the same amount of money as did
The delay in giving consider
**ancisco will call you in New the one-Cylinder Cadillac factory tion to and the granting of in.
to
have
there
been
statements
by certain inter-
ested parties
condemning the en¬
Letters have reached
tire report.
office telling of the
my
which
will
come
th
our
,
a*m
a
.
.
?ork and '"vite you to have
and I am not unmindful that we
have
a
new
Commission
_
has
Jbe .mofst 0P"mistic railroad en
^iirn^H^lnnnt^nmnPtP
that
^ie^d-
b^en
branch
losing money> and creased rates to common carriers,
Competition in Transportation
The
airplane
the
was
only
Interstate
for
report
its
Comviews.
in a study
shortly the
engaged
now
are
this
of
the
to
Commission
merce
We
and
Commission
will
through
LegislativedoCommitaccount I
not be-
On
tee.
^.s
mat
its
issue
report
heve it would be proper
for me to
express my views at
this time,
But
I
repeat, when regulation
reaches only a small fraction
to
wit,
sbont
carders
one-fourth
-one
of
the
of
The privateer-
showing
a
loss
over $200,000 a year. The railroad president knew the branch
attitude of one charged
with making decisions, whether
he be a member of a Commission
or Court, is an all important facmental
tor for into every decision every
makes must go his past experiences. Even the Judges of the
Supreme Court of the United
man
States
look
at
written
laws dif-
ferently. Honest, intelligent and
able, these Judges come to different conclusions
as
to what
different
laws
mean.
I have
known men on the Commission
wh0 believed in the strict techniCal enforcement of the regulatory
iaWs. I have also known men
0n the Commission who believed
those laws
and interpretations
should be altered to meet the
changed conditions in transportatkm Frankiy> i think the present Commission has made great
+nwnrri
_rrttfrP(BC
hr{ntfino
gone.
In
a
regulated industry even the
U
haTh^n
of tbe Commission, it has been
interesting to me to find that no
one wants bis own business reg¬
uteted, yet everyone wants his
Motor? knew'The onlcytrndeJ
cisions without first securing the
competitors regulated. Oh, how
factory should be torn down. But
consent of the commission which
should
be abandoned
just
as
smartest
afe
executives in
unabie
to
make
the world
binding
Continued
on
means
This announcement is neither
an
offer to sell nor a solicitation of an offer to buy any
Bonds. The offer is
Regulation where an industry
a
m0n0p0ly is quite different
^an regulation where an industry
js
engaged jn
is
There
ness
ence
a
competitive busiterrific
a
differ_ v
between a regulatedy indus-
and
noj.
Qne
which
ference
regUiated;
a
dif-
is
believe
j
Illinois Bell Telephone Company
not
First
generally understood.
Not long
agQ
leading businessman said
t*
Q£
,The%reat
me>
America
are
of these
made only by the Prospectus.
$30,000,000
js
corporations
manned
by
Dated
Mortgage 3'A% Bonds, Series D
Due
July 15,1955
July 15,1995
ex-
ecutives with vision- They have
tin-
derstand how anvone can sav that
aersta
a now anyone can say tnat
Interest
payable January 15 and July 15 in Chicago or in New York
City
^L^w3•"'u^tod^te'^rtSSta
°f tomorrowt up-to-date plants
with the latest e<*uiPment able t0
Tiers,
apd
rarriers
none
it
is
regulatory laws.
In
my
rules
the
exempt
to
^ W
and reinterpreted
of
in
existing
today.
nation
had
conditions
industry in
The railroads of
an
absolute
mo-
nopoly for better than 30 years,
and frankly, they were a little
highhanded and took advantage
of
their
position.
As a result,
some
60 years ago, the Congress
passed
certain laws to protect
the public, and the Commission
interpreted
those
laws
in
the
light of the prevailing situation,
to wit, the monopoly of the railroads. Many of those laws of 30
years ago
are
still
on
produce
the statute
yOU
by Chairman Mitchell
he-
fore the Accounting Division of the Association
cf American Railroads, Atlantic
; City, N.
June 28; 1955.
better finished product.
Price 1013/i% and Accrued Interest
suppose
\
the
executives
of
General Motors would permit the
trains to climb these steep grades
twist
and
curves?
these
around
sharp
How long do you suppose
Copies of the Prospectus may be obtained from only such of the undersigned
as may legally offer these Bonds in compliance with the
securities laws of the respective States.
the executives of General Electric,
or
0f
Fordj
raiiroads
would
with
this
operate the
old
equip-
MORGAN STANLEY & CO.
ment?"
When
Motors,
he mentioned General
General Electric,
and
Ford, that is where i entered
the picture.
"But," I replied,
"there is a difference, an important difference, between General Motors, General Electric,
Ford> a"d the railroads of the
nation. General Motors, General
Electric
»An address
a
For example, if theyhow long do
were operat¬
ing the railroads,
transportation
America
the
°
me
many of our
interpretations need to
light
the
the
for
judgment,
and
be rewritten
in
of
hard
nhnut
progress towar^, brmg'ng ?b°ut
de-
of public transportation
which increased the number of
are
approved by the Congress, passengers carried last year. The
Bills pertaining thereto have been trails and buses lost passengers,
introduced in the Congress and, Competition?
I know of no field
in accordance with the ordinary in which there is keener compeprocedure, these bills have been tition than that of transportation.
referred
line
of
ime
seg¬
ments of the transportation indus-
try if the measures contained in
the
Cabinet
Committee Report
which
lunch with him that day in ban taxes have been increased by the both rails and trucks, has cost a more reasonable and fair mtermuanC1uC?u aiJ
Ti fi h k *oca* tax board?> i
these common carriers hundreds pretation of the regulatory laws,
1 e"p^mY^ yo^ wl t y ™
Over three years'ago the rail- "Pon hundreds of millions of - Regulation is necessary. Over
disaster
certain
to
pace
True,
changes,
some
oSnJS Ln°eykS; 0%
appointed by the President. I have
seen
keep
with changing conditions.
trucking industry
stav
big
[^the trucking mdustry
°
y
failed
have
tions
iated
and
Ford
are
not
industries; the railroads
partu
.
rnmnarp
a
GOLDMAN, SACHS & CO.
are.
rPfri^atoH
CORPORATION
KIDDER, PEABODY & CO.
*
LEHMAN BROTHERS
STONE & WEBSTER SECURITIES
regu-
.X0,U
1 C°mpare a regU*ated
industry with one not regulated."
THE FIRST BOSTON
BLYTH & CO., INC.
July IS, 19.15.
SMITH, BARNEY & CO.
CORPORATION
page
32
30
The Commercial and Financial Chronicle...
(170)
subject to similar
this index
lends itself to a better presenta¬
tion of the visual growth picture.
1926
Some Measures oi
Today's
Stock Market Level
Electric Illuminating
Company
fluctuation of unusual
10
every
extent and
What
extreme
which classify
them as out¬
give us an historical and
statistical background
on
which
to
make
our
future
estimates?
order to
bull
standing
markets.
These
by
students
financial
of
theory
an
as
fact.
observed
for
reason
them
c.
Austin
market it-
ket
is
the
most
investor faces under
an
conditions.
today's
sold,
tion
sure,
only
occurs
once
in
yet,
And
view of the fact that such
painstaking selection
is always a necessity for the investor. He must as usual seek the
be
of 3.2%. On this basis, common
stocks do not appear to be priced
as high today as in these previous
bull markets.
However, a better picture of
alternative investment valuations
.
tive.
plus the
factor,
Standard
affirms
shares,
low-priced
lag
index
Poor's
&
of
the
statements
in financial
circles
that
buying
stocks
on
credit is not now a heavily specu¬
general
I
lative factor.
how
high we
with
other
us
parison
in
are
twice in
or
business generation, it may
every
The
be the problem with which we are
these
stocks divided by their net earnings per share after taxes is
another very important compari-
indicate
would
strong
a
time, with the
in Washington
present
favorable
climate
for
business
and
the
with
labor,
increased flexibility
and coordina¬
tion of fiscal and monetary policies
and the various
cushions
in
purchasing power
economy, the fi¬
the
markets
at the mercy
not
are
much
so
of destructive forces
as they were prior to earlier cycle
liquidations. Moreover, the next
cyclical action the business cycle
undergoes should not be so sus¬
ceptible to the contagion of senti¬
that
from
spread
can
a
cycle.
H. C.
to be
Wainwright Adds
(Special
The
to
Sandford
staff
of
State
60
New
C.
M.
the
to
Wainwright & Co.
members of the
Street,
York
added
been
has
H.
Chronicle)
Finincial
Mass. —Edward
BOSTON,
their
seems
also must
later,,
year
a
pr
the
com¬
major advances
of these
ouradon
and
Stock
Boston
Ex¬
changes.
-
$64,000 question.
guide based upon the rela¬
tionship of the rate of change
between the capital goods market
the
is
With Investors
A
general stock market ap¬
to be integrated with the
the
causes
many
Finincial Chuonicle)
(Special to The
BOSTON,
>
-
Planning
1
Mass. — Moran T.
joined the staff of
Jammen
has
Investors
Planning Corporation of
New
England, Inc., 68 Devonshire
Street.
r^-v°rsais of the stock market.
guide was described in
a
recent issue of Bar¬
new
in
With Brown Bros. Co.
(Soec:al
published
Both indices are
ron's.'1
common
At
ket
What will be the
danger signals.
detail
of
price
it
but
months
major downturn in the stock mar¬
healthy, the indicators appear to
be
advancing
toward
possible
This
thirties.
six
tendency in that direction.
outstanding
Although
markets.
bull
and
which set in after the middle
business cycle downturn
occur
Most of these market indicators
tell
This does not mean
expectation of lowered
an
ment
Toward Danger
Signals
Advancing
is shown by comparing the stock present overall status
situa-
a
that
profits and concurrent stock mar¬
ket
downturn
requires
that a
nancial
credit
The
in
„
.
1936-37 and with 65% to 70% of
bull markets.
bond yields in 1929 and corrects
level of the mar- the comparison for the long-term
important single
in .bond
interest ratos
the
suppose
problem
agonizing selection of
the securities to be bought or
To
be
specula¬
as
responsible for the
nine-to-ten-year upward swing?
During these periods
self, becomes as important to the
investor
as
the heretofore
all-
important,
identified
30%
could
transactions
pears
1
of the stock
level
the
Less than
35%.
total
levels of today's stock market with
Barker
yet been fully
explained.1
another
definitely
trasts with stock yields of only
comparative 90% to 100% of bond yields in
the
the
on
other outstanding
not
has
reflect
which
transactions
total
the
of
look at the
to
necessary
the
for
view of the fundamental statistics
basic
The
it
mar¬
Exchange while individuals with
long-term
objectives
accounted
yields to high grade corporate
bond yields. The yield of these
happen as it did in the past, nor same industrial stocks
has reshould we project a figure or a cently declined
from two times
curve
blindly
into
the future, the interest rate of high grade
However,
these
comparisons bonds in early 1954 to 1%-.times
should serve to give us a brief re- the interest rate today. This con-
been
many
of the three outstand¬
Such comparisons don't imply that
everything
in the future must
cycles
have
confirmed
the level of
today's market with other outstanding bull market levels in
levels
reach
analytical
of the
some
are
tools used to compare
fluctuations
one
to
low of 3% and the 1929 low yield
Analytical Tools
20 years these
or
in
respect
it also disclosed that institu¬
ever,
of
general impression that we are
and stock yield basis alone the StandalPd ^ Poor s 50 industrials today
yield 4%, compared with the 193o
due to material shortages
postwar reconversion.)
9 or 10 years the stock
undergoes
an
upward
Every
£bout
upward driving forces.
significance.
tional investors accounted for 14%
of
out
relationship of these market prices
to fundamental, underlying values
to
help him
in comparing the
levels of the cycles.
For
example,
on
a
common
watching in spite of the almost overwhelming long-term evi¬
r.iarket
of
evidences
some
with
December,
their
broken
again
finds
indi¬
and concludes today's bull market levels bear careful
dences of the
disclosed
1954
in
days
gin
purchases
and
short-term
capital gains expectations. How¬
ing bull markets of the twentieth
century—1929, 1936-37 and 1955.
The
researcher
or
statistician
Reviews
stock market.
yaiious measurements of stock market levels and trend
cators,
of transaction
survey
tv/o
speculation
glance at a chart of this index
verifies that the industrial stocks
the
guide in gauging the duration of the present bull market,
Barker uses the rate of change between the capital goods
stock market and the general overall
during
long-term channel, as they did in
1929 and
1936-37. This confirms
a
Mr.
spot
the New York Stock Exchange
on
A
now
As
However,
have
By C. AUSTIN BARKER*
Director, Financial and General Economic Research
Cleveland
The
100. It is
as
limitations.
Thursday, July 14, 1955
with
the
Potts
markets,
bull
1937
and
1929
is
of
the
Harriman
stages
last
the
&
James M.
—
Brothers
Brown
Co.,
•
Chronicle)
Financial
BOSTON, Mass.
by Standard & Poor s.
During
The
to
Office
Post
10
because it ties their prices to capital goods index overtook the Square.
help of a good brokerage house mental,
historical
comparisons the fundamental factor of earn- industrials index prior to the last
Keller Bros. Adds
with a competent analytical de- which are most useful in financial lnSs- ft. 1S especially valuable in stages of the cycle and accelerated
(Special to The Financial Chronicle)
partment, or a dependable finan- research to determine the relative comparing market levels of past at a rate faster than the indus¬
service,
cial
liable source,
a
some
or
son
position of
trusted investother redepending upon the
or
adviser,
ment
least familiar. Some of the funda-
bull markets. Today these mdustrial stocks are selling at a price
his
investment
own
when
themselves;
program.
Relationship
bond
the question of
buy tends to become as
to
of
the
as
their
readjust
nrirpd
at
or
low.
too
of
occurrence
Due
such
is
if all of
us
minds
and
memories
magnetic tape recorders, we
computer
wouldn't need the charts
I
it
find
compare
10
or
tables
or
look
to
at
the levels of today with
is high?" and "where
re-
of
450 for the DowJones average actually compare
with the outstanding bull market
of
1929
-make
1936-37?
comparisons
upturn
tries
or
because the heavy indusgot into full" swing
*T~ address by Mr
aa
u
m
*An
f akewood
,
will not
with the 1946
(I
never
June 28,
Kiwanis
r
b
u
marke* c>[c'es
TyS
Haberier,
seef
s«
toSSU
Cottfried
vori
"Prosperity and Depression,"
United Nations, Lake Sue-
edition,
JJ; Y. ' 19*6; a"d i.AhthuLF'
Business5 Cycles'," Na'tional Bu"""
Research,
n.
Y,
1947.
in
the
before
the
high
1929
price was approxitimes
average
book
3
vaiue
AnotKPr
widelv
rommri
used
Anotnei widely used con.pari
^
are we
us
to
us
now?"
make
a
ctnnHnrH
?ndpx
stork<,
the
,-0
J0
overtak6
Senate
still
fn
helow
wpII
index
has
It
if it is
an
high
the
This
of
is
even
in-
grade
provocative
a
view
relative
the
of
performance of these two indices
bull
past
markets,
investigation
.
recent
the
the
of
E.
has
to be
the low-
on
rate
to
goods
index
industrials
possible longer period
for the late phase. On this bas;s
there appears to be grounds for
expecting the present bull cycle
a
least
at
continue
EVENTS
in¬
closely
most
through Au¬
outing
Club.
July 22, 1955 (Portland, Ore?.).
of
measures
levels
market
of today's
and
try Club.
industrial
Denver
Sept.
re¬
°ne of the most unusual aspects
ig the difference in stock market
trials have just reached an alltime high of 450 compared with
?o! at the 1937
1TJ
in?2
! "52?®. a
194
total
.
today
the
Dow-Jones
peak.
irlterectincr
hut
h^rrllx/
indus-
This
IS
an
credit
York
Stock
are
value
of
Exchange
compared
as
190Q and
3
iroim
loans
market
over
2%
all
stocks
with
in
New
to-
10%
1937
Fven
in
a
,a OVei Z /c 111 iyP/. HA en a
estimate
of
all
forms
of
Wlth these distant periods credit extension to the stock mar?ha„ny- reasons'. Among these ket, including brokers' loans, does
f£jh?h™Ie??e in ™mber 0
not exceed 3% for today
stocks
1929 2
the
index,
and
the
.
change in the value of the dollar. _—L.
/the Standard & Poor's index
leading industrials is based
of
on
„,h2 Ric!l»r^ >vMay," 9S5!
1953
ness
signs
stock
was
would
occur
of
Fall
Product.
the
Sept.
3 Barron's,
Top?"
2,
1955,
11 An•
AT y
"Market
(New York, N. Y.)
*ccnriation
of
Stock
Exchange
Firms meeting of Board of
Gov¬
ernors.
^OV. 27-DeC. 2, 1955 (Hollywood,
Florida)
*
31,
National
Bureau
of ".Economic "Research, inc-VlSoOU
•«< Li:
V
W
'! '•
••
.
(Denver, Colo.)
Stock
ernors.
''Statilstj>cal In.dicat,?rs of Cyclical Revivals, and Recessions,, Occasional Paper
~i\-
of
Club, Ab-
Exchange
meeting of Board of Gov¬
Nov. 16-18
•4
?
(Philadelphia, Pa.)
1955
21-23,
Firms
stock
May
1955
Association
price aver¬
have substantial forecasting
ages
meeting of Board of Gov¬
The
presented in the recent
that
(Chicago, 111.)
don Valley Country
ington, Pa.
study by Geoffrey H. Moore 4 in¬
dicate
Is¬
(Mackina®
Bond Club of Philadelphia 30th
Annual Field Day, at Hunting¬
,
followed months later by
National
Gross
16-17
Sept. 16,
slight dip in overall busi¬
activity as measured by the
evidences
1955
ernors.
business
decline
11-14,
Investment Bankers Association
of trouble.
market
annual out¬
Club
land, Mich.)
a
as com-
llsieu snares, the replacement of pared with approximately 20% in
in
The
would not be ex¬
major downturn in
fundamental
showed
data
only
a
market
the
after
currently
Brokers'
employed.
only 1% of
It
stoick
Bond
Colo.)
(Denver,
National Security Traders Asso¬
ciation annual convention.
Sept.
host of others.
cycle.
,
.
1955
ing at Park Hill County Club.
automobile
production,
new
construction,
national
de¬
fense, populatioh
growth, and a
pected that
...
18-19,
Aug.
search,
ket
sum¬
party at the Oswego Coun¬
careful
bear
watching in spite of the almost
overwhelming and long-term bull¬
ish evidences of the driving eco¬
nomic forces of the nation, such
automation
•
Dealers
Portland, Oreg., annual
mer
bull
Securities
Investment
above
Country
Toledo
the
at
"
Conclusions
The
Field
July 14-15 1955 (Toledo, Ohio)
Bond
Club
of Toledo
annual
1955.
gust,
Investment
In
but
excess-acceleration
the
over
indicating
the
™ "gfu^esnerlahv to show
cu?TeL
especially to show
c^rent trends.
h-
&
1936-37 market,
the
slower
a
capital
appears
ber
market
all, we have the so- market, and the increase in maraggregate common stock gj^ requirements. The only impact prise what we generally term the
business cycle, not the stock mar¬
prices themselves, such 0£ tightening
margin
require-
„
r
Thomson
with
is
Wilson
Chronicle)
SALEM,'N. C.—Eric
McKinnon, Reynolds Building.
stock
.
Ui)
(Special to The Financial
WINSTON
However, the latter items com¬
Dow-Jones Industrials ments appears
p^r?fc>eT ,an<J
Standard & priced shares.
asrt
this
of
resemble
as
dustrials
19aa-
,,lr?
is
ind„strials
ion nrdnt<5
,hni]t
lnw-nrWd
Pnnr-,
<>
situation
called
Thomson McKinnon Adds
to
COMING
bull
current
The
to
of low nriced shares sureing
Ed«ar Parlson
ces*-
£c».mic
mately
interesting but hardly valid com- careful
Fw.
third
(
Barker before the
Club, Lakewood, O.,
1955.
1/°.r,
value
and
average
Quick review then of the market
levels in the three bull markets of
our generation—1929, 1936-37 and
maiket
example, how does the
high
of
his personal judgment in
making his decision of "how high
to
20 years ago.
For
cent
necessary
each
base
With this in mind, let
electronic
had
book
downturn
.
,
,
breakthrough
the
since
dustrials
Street.
and has advanced about 27 % from
.
times
,,
for
the
to
Court
Zero
Co.
Brothers Securities
of Keller
month
breaks
through). At present (estimated
through June) the capital goods
index has risen 7% over the in¬
dicator
they should provide
springboard
a
to the
periods,
mcomplete and sometimes false.
Now
.
us
prior
havior
&
,
before
ale
month
times the average book value. In
'
market value reached 2.3
^h®nlcal a,f orforward beyond the general marturn I'or jfundimentals
However ket jndices '
Qf
when all the statistical measures the bull markets. At present, the
the impressions are almost always
like
bull
three
(the
20%
base
own
shares' market value is about 2.0
which operates on the market. It
is not necessary to rely on a single
equal importance to the analysis of securities, we find ourselves
trying to determine how high the
high
the
its
BOSTON, Mass.—John R. Wat¬
has been added to the staff
son
its base month.
bv
.
of
rare
between
advanced
also
from
marketg For example> today the
Standard
&
Poor's
industrial
evidenced
ket
since the market itself has become
too
had
35%
risen some
the industrials
over
general
:
these,
market should be or what level
and
13%
capi¬
had
index
goods
ence
brokers' loans* and
n
like
times
to
Both
averages
show
approximatel.y the same degrees of differ-
Relationship o£'prices of'capital
goods stocks to the general mar-
to
11%
The decline came after the
tal
general
the
tn
'trading
'
an^ 1936"37 bu" markets.
13
to
low-
'
these
during
-
Therefore,
of
Tiese and a few other basic
fundamental statistics, taken as a
whole, reflect tne market as it is
and, indirectly, the psychology
self-discipline
oeriods
index
bull
the
of
reached four to eight
was
months later.
12
Another useful comparison of
market levels is the ratio of the
market value of Dow-Jones or
Standard & Poor's industrial comJ
mon stocks to their book values.
values-
book
of
market-
must
market,"
market
general
to
market
peak
the
until
trials
times
earnjngSj compared with prices of
18 to 20 times earnings in the 1929
approximately
com-
prices of
shares
Tyraroin
careful observance of the
include
to
(price-earnings
market
stock
mon
stocks, but by recognition and
study of major price cycles. Investors who foi years have toilowed the wise provision of
don t
watch the market too closely" or
the
of
Relationship
is not achieved solely by
play
yields
yields-
earnings
Ratios
study of individual company
"don't
stock
ratios)-
what to buy.
In such periods investors must
keenly realize that the preservation
and
appreciation of stock
capital
of
Common stocK prices as multiples
today,
important
price
averages
Common stock yields;
However, every 10 or 20 years, as
illustrated by the bull cycle stock
market
stock
Common
selectappropriate to
the securities
of
<
degree of help he needs in
ing
stocks at any
common
particular time include:
"
i
Investment Bankers Association
t
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'
;aillllial. ,C0nyentlon
<1 ,WOOd Beach. Hotel.
,
fit
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Number 5446
Volume 182
The Commercial and Financial Chronicle
...
Financial Roots of Dynamic Growth
By W. RANDOLPH BURGESS*
Under
Dr.
ton, were adopted by a reluctant
Congress and carried out under
greai difficulties.
The result was
money are
T
policies that established and maintained '
sound national credit, and deplores the
opposition raised in the last few years to these old principles. ;
Combats ideas that there should be a gradual decline in the
value of money, and recounts the financial objectives of the
present Administration.
Points out period from 1951 on
was
a
period of revival of sound money policy throughout
ization
who .have
countries
many
know
what this
dollar"
has
worth
the field
In
where I
of finance
perhaps, less fre¬
quently reminded of our found¬
ing traditions. It has therefore
we
are,
seemed
"1
to me
it
basis
have
fighting
the war,
and
debts owed to foreign countries
amounted in all to $78 million, a
towering sum in those days. Per¬
statesman
taken
than
committing
this
has certain fi¬
bonds
step
financial
courageous
more
no
ever
was
mind you that
this country
by
a
the
country
to
in
full, even though
representing the debt sold
tradi-
in the market at 10 cents
which
dollar
those
politi¬
that
parallel
in
the
cal
arena
iCOuld
—
I
even
the
surest
in
confidence
establish
to
way
the
new
govern¬
integrity,*
ment's financial
put the plan into effect,
these
which
ones.
day
office
surrounded
My room,
my
the Treasury I am
by
traditions.
than
White
the
after
Portraits
House.
hang
ury now
of
the
not
at
of
Treas¬
this wall.
Secretaries,
on
These former
realize when
did
Lincoln
Mrs.
Secretaries
former
Lincoln's
he
because
disturb
to
read
we
as we
their writ¬
ings, faced problems astonishingly
like
difficulties in rais¬
own:
our
ing taxes and borrowing money,
•despair over the spending pres¬
sures of the Congress and the peo¬
ple, the constant importunity of
people looking for Federal jobs.
This evening, I should like to
remind you of the nature of the
great financial traditions which
we inherited along with our Dec¬
...
laration
it need¬
and needed it badly. No
ed money,
sound financial program was pos¬
without
sible
income
to
adequate
Federal
interest
pay
the
on
tured, and to meet government
operating expenses.
But the possible sources of Fed¬
assassination
want
could
government
housed Andrew John-
more
President
as
the
debt, to retire the debt as it ma¬
back
in his first few months in of¬
fice
Before
100
dates
years, once
.son
to
to pay debts.
gram
in
;at
was
start immediately on a sound pro¬
political
Every
Burgess
the
on
But Hamilton knew
less.
or
that they
undergird the
say
R.
pay
debt
t i
W.
action
Hamilton's
nancial
o n s
of
and
Independence
Constitution
examine
then
and
those traditions in the light of the
eral
and problems of this
dynamic atomic age in which
jwe live.
*
It was in the year 1789, imme¬
diately following the adoption .of
the Constitution, that Alexander
limited.
were
revenue
individual
states
The
jealous of
their own prerogatives in levying
taxes.
The colonists, under the
British crown, had vigorously re¬
sented such imposts as the stamp
tax on tea, and had taken delight
in
were
evading British levies
im¬
on
The administration of any
ports.
taxation was
difficult.
For this reason, and because of
the country's heavy dependence
on imported products, the govern¬
ment decided to rely on import
duties for most of its income, add¬
internal
of
system
certain to be very
levies
ing
spirits to
distilled
on
well.
collec¬
domestic production as
cover
this
Under
tions
simple
plan,
concentrated
were
on
was
instead
foodstuffs
sound
of
and
reliable
direct result
of what
a
a
and known.
seen
Sound
there
But
serious
one
was
threat
the
to
far beyond
technical finance.
The Treasury
of the United States is, in a sense,
the bookkeeper for the country's
civilization.
It keeps the books,
not only for the National treas¬
ury, but for the whole economic
life
social
and
Women
tion's
the
of
theoretically the
are
bookkeepers
had
of
bave
subject, I quote from an
Esther Ebe^rstadt
Brooke in the second challenging
volume
of
"The
Spiritual Wo¬
United
man," edited by Marion Turner
Sheehan, a member of this asso¬
of
ciation:
success
this plan—the widespread
out of Con¬
the
banks
political
It
reasons.
re-established
is the
myth that women hate
figures. The truth is that woman
brought to business an orderly
mind, trained by years of bat¬
tling with the budget. Women is
the only creature on earth able to
multiply nothing by nothing and
get something out of it. She is in¬
herently a bookkeeper with an
accountant's delight in the profit
in
sound central
maintained and whether it is pos¬
"What's the use of
because it will
not buy as much when you come
to spend it?"
i Some
economists
have
even
gone so far as to predict that this
people
saving
column
and
determined
a
during
this
was,
we
personal lives — food, clothing,
education, transportation, medical,
recreation, charitable, social. Any¬
who flipped over the stubs in
one
have
would
books
after
Let
the
silver,
a
in
led
But,
long
have
in
is
of
out
check
when
balance,
book
income
sound and growing economy.
so
free
in fact, in the Treasury
augurated by Alexander Hamilton
165 years ago.
This
of
in
on
the
This, of
course,
is
one
we
This
less.
^Hamilton became the first Secre¬
tary of the Treasury.
He
was
first cabinet officer appointed
the
by
For
gling.
vital
—so
dynamic growth of the
billion.
by $7V2
The road
need it
try's
of
bring
for the great prosper¬
imposes to keep
defenses
the
strong.
budget
into
Continued
:
on
of
evasion
Hamilton's most immediate and
enforcement
Hamilton
and
—
the
This announcement is not
rec¬
construction
money program
ommended
sound
nation's
the
to
manning of "10 boats," to use his
nue
each, for
a
an
offer to sell,
solicitation of
or a
an
offer
buy these securities. The offering is made only by the Prospectus.
July 13,1955
NEW ISSUE
"Reve¬
Marine Service."
These
10 vessels,
225,000
small that
challenging problem was that the
country had no money that could
toe trusted. There were some coins
<of various nationalities
built and started active
SHARES
Hamilton called them boats, were
and. some
issued by the states
and
the
Continental
Congress.
"Not worth a continental," was
the common phrase which charac¬
paper money
the
terized
'It has
value
down
come
that
of
to
money.
today—
us
and still means what it did then—
has
which
something
sound¬
no
ness, nor integrity behind it.
Hamilton realized that a politi¬
-
cally independent and permanent
nation
was
virtually impossible
without
national
financial stabil¬
authorized by the Congress, were
area
ity,
by
seemed
a
strongly opposed
Federal author¬
almost
an
insur¬
Hamilton's bold plan for re-es¬
tablishing the nation's credit in¬
volved Tecognizing and
funding
the nation's debts, paying inter¬
est on them, and retiring them asfhey came due. The domestic debts
owed
by the Federal Government,
■
.
t
-
*
•1J:
";
i
I"
i! I
'
'1
'*■
*An address .by PrT Burgess before the
National 'Federation: of' Business antf Pro'fessional Women's
Clubs, Inc., Louisville,
Ky., July 2, 1955.
of
STOCK
;
its
established
uallv
blockade
The
aims
smuggling.
realized.
were
remains
Guard
Price $11 per Share
effective
an
against
Coast
today
important agency of the Treas¬
Copies of the Prospectus may be obtained from any of the several underwriters
in States in which such underwriters are qualified to <act as dealers in
ury.
Thus, the first steps were de¬
signed to assure that the nation's
income
mountable task.
COMMON
(Par Value $1 Per Share)
the Revenue Marine Service grad-
an
with states
,
Corporation
size and the
operations,
Despite its small
extensive
stroyed both at home and abroad,
taxation
The Siegeer
characters."
Hamilton's
to
operations
against smuggling in the follow¬
ing year. Thus, the Coast Guard
began. It was commanded by 40
carefully selected "officers of the
customs," and manned by crews
which,
as
Hamilton
insisted,
should be made up of "respectable
ity. To achieve this in a raw, new
country, with credit virtually de¬
and
so
would
meet
its current
well
as
be
on
to
begin
adequate
securities and in which the Prospectus may
only
legally be distributed.
to
expenditures, as
some payment
William
R.
staats
&
Co.
the debt.
The second steo in support
of
a
DOMINICK
program of handling the debt was
the United States which
tered
in
1891
to
act
was
as
a
bank and -as the' core of
i-
These
policies
of
char¬
the
new
I,
Alexander
■■
'
SCUWABACHEI!
central
■r
American banking system.
BACIIE
& DOMINICK
the establishment of the Bank of
.
1
J
t
r
'
r
«
.<
.
'
•»
■
;fM
"
r.
<
>*
& CO.,
econ¬
block
our coun¬
Until
wo-
complete
balance, the debt, of course, will
country.
through smug¬
revenue
to
words, at, $1,000
'George Washington.
:
duties
customs
try
been
taxes have also been reduce*!
,
of
shall
has
in the way of further economy is
cold war and the imperative
by
economic growth of this
it
make
the
their
of
predecessors.
so that, this
estimated at
our
mum
busi¬
unimpeded
value
from
have reduced
we
omy,
people's minds
and
list them:
done, primarily, by reducing ex¬
penditures by about $12 billion.
With the recognition that our tax
rates are too high for the maxi¬
the
concept
trade
me
coming year it is
about $2% billion;
the dollar has
of
go
reasons
ity and
the
Let
(1)
We believe in,
and are
working toward, a balanced Fed¬
eral budget.
The first year we
came into office (1953)
there was
a deficit of $9V2 billion, which we
people
and
flow
about
in
and
American
to
best
following policies which,
today
are
closely parallel to those in¬
decisively
so
main,
secure
could
money.
the
a
We are,
the
foundation
this
*
Jennings
the
money
the
ness
is
that
for
r.
the
clung
sound
been
can
have sound, stable
which will retain its value
the years.
We believe also,
down
to
run,
worry
nation's
and
for
<
the life of the nation.
the
War;
Today in.
country
about
William
by
you:
money
1896.
that
When
Civil
reassure
Treasury Department we do
believe this. Quite the con¬
not
a
struggle
Bryan and defeated
pretty good idea of the life of the
family. So, the accounts of the
Treasury give a vivid picture of
:
the
was
a
value of
trary, we believe firmly that this#
the question of
of specie pay¬
the
me
inherited
there
and
money.
mone¬
disputes
great
included
resumption
ments
face
would
prices
rising
gradual decline in the
in¬
had
country
inadequate
Other
broom
the loss."
Our own personal check books
reflect almost every aspect of our
check
from
money
the
countries
continually
banking system and
interim
period we
this
suffered
to sweep away
our
say,
your money
other
and
tary policies.
deathless
cold
ticularly, which has led some to
wonder whether traditional poli¬
cies
of
sound
money
could be
terminated
were
deed, not until 1914 that
relic of the didiesera
in and
States,
were
both
for
"One creaky
tremendous
and its successor
subject of violent
political arguments and the lives
bank
long
Our Policies Today
history we
disputes
of
span
had
gress.
The central bank which
Hamilton set up, The Bank of the
by
not-dollars-for-women
the
about money
this
On
article
inflation, more than
necessary had wiser policies
Over
the succeeding
and
produced an inflation which
seriously reduced the buying
power of the dollar and brought
hardship to people who were de¬
pending on savings or were liv¬
ing on pensions or fixed incomes.
It is this recent experience, par¬
been followed.
na¬
bookkeeping.
sound
serious
was
they, par¬
ticularly, will undertsand the im¬
portance
,./V"
.
There have been exceptions. At
times of each great war we have
.
so
rela¬
at
was founded have been
cherished during most of our his¬
tory.
its
with
II
sible, in the long run, to avoid in¬
I am sure you have heard
country
country.
to ques¬
principles.
War
World
flation.
Traditions Followed
Fortunately, the sound prin¬
ciples of finance on which this
implication
an
fails to meet outgo, then people
;
i
especially begin to question the sound value
tively few points.
^pressures
pew
money
he had
nies
for
re¬
their
mination to establish the country's
;
the debts incurred by the 13 colo¬
haps
to
of
Tliese rigorous principles which
Alexander Hamilton inaugurated
might
be
appropriate
me
ef¬
war
Bookkeeper
in
tion these old
war
during the
them available to feed
the troops. His tremendous deter¬
The Treasury as the National
the world.
labor
the place
taken
v
Questions
have been raised
voices
in
associates
making
continental."
a
his
11
But in the past few years some
duration
hoard
today is a standard of value
lor the whdl'e world.
"Sound as
"not
on
fort, made people even more re¬
luctant to serve ih the Army and
Navy, made the people desire to
lar
a
and
Some
many
thrown out of gear.
Revolution held back the
The dol¬
means.
the
depend
of the value of money
have such
experience
international
wide
which
Hamilton
in
traveled
and
and
money
the government knew that, because
he saw how the disorganization
You of this organ¬
world.
their
transactions
making the dollar the best money
sound money and a
a
of
in the
Hamilton's financial
•
Hamilton, supported by the great
moral force of George Washing¬
tnat the foundations were laid for
Burgess calls attention to the great financial traditions
undergird those in our political arena. Reviews Alexander
that
>/
Secretary of the Treasury
(171)
I
,,
&
CO.
page
31
12
investment.
Role of Credit and of Federal
Adviser
role
and discusses role played by credit policies
Economic
the
in
developments
United States during recent years
present
of
events,
of
record
a
and consequences, that may
be considered
causes
epoch-
as
making. The
performance
United
the
of
States
o m
econ-
since
y
1939
has
been
magnificent
in
of
terms
growth,
tivity a,nd sound growth. At times
have exercised needed re¬
straint on too rapid or unsound
they
credit expansion. One of the
and early
again after the
accounted for
approximately a doubling of the
price
level, with rather wide
swings in some groups of prices.
These
price developments were
disturbing; they greatly upset the
relationships between various
groups in the economy and were
particularly burdensome to per¬
well
as
incomes,
to those with accumu¬
as
giving a
assets
in
savings
lated
permitted high level ac¬
that have
postwar years and
Korean
outbreak,
with relatively fixed
have also
lenders,
with
together
financed the more stable demands
occurred during the war
sons
post-Korean
deficits, as well as
the expansion of private borrow¬
ing, that together contributed to
the inflationary outbursts. Banks,
government
develop¬
of the
Federal Reserve. Says during past three years there has been
a complete cycle of business and credit which has significance
for understanding the future. Holds it is evident that indus¬
trial recovery in the U. S. has been achieved, largely by private
initiative and actions. Concludes, if present rapid advances
continue, there will be pressure on the available credit supply,
and cautions bankers against encouraging credit excesses.
-
helped
and
wartime
the
Federal Reserve economist reviews current economic
course of
to finance
the
in
Banks
events.
The Federal Reserve System
ments,
develop¬
monetary
policies have played an
important
of Governors
Board
and
Credit
ments and
By WOODLIEF THOMAS*
institutions
through
nonbank
which
bank
—
and
have
permitted
financing of growth without
the
—
Another
develop¬
all over
outstanding
ment of the last five years
the world has been the restoration
of
policies
monetary
banks
as
central
of
influence
an
in
the.
of economic events. Central
course
being
discontinued
regulation
of
price
the Federal
Reserve System—endeavor to reg¬
large extent supply,
ulate, and to
a
reserves
primary
re¬
the basis
on
real
voluntary
well
allocations
as
scarce
and
but
imposed
|did limit,
they did not stop, credit and
monetary growth. The growth that
apparently corresponded
occurred
closely
the capacity cf the
absorb more money
to
to
economy
the
Since
inflation.
without
re¬
of the economy were gen¬
goods. These regulations,
together with the more flexible
sources
Federal
credit would have resulted in
Reserve
helped
and
to
keep
private
policies,
credit
had
extension
within
demands
the
bounds of productive capacity.
In the year from mid-1952
there
spending
slackened,
renewed
was
but
expansion
of
price
flationary
more
any
in¬
Moreover,
rises,
additional credit might have built
up
to
utilized,
fully
erally
debt
unsustainable
an
struc¬
ture.
Inflation
mid-1953, the rate of increase in
defense
strong
for
demand
prevented,
was
withstanding
credit.
more
not¬
of
pressures
Prices
private expenditures for nearly all
purposes, and private credit de¬
remained
mands
the effectiveness of the restraints
became much
All
ous.
showed
major
vigor¬
more
types
accelerated
of
credit
rates
of
in¬
Consumer credit increased
crease.
billion in
the
months end¬
12
stable.
relatively
stability
indicatioh
adopted rather than an
that
they were not needed. Even
in
so,
This
prices is evidence of
of
lines, particularly in¬
some
to
loans
stalment
and
consumers
ing June, 1953, as compared with
little change during most of the
inventory loans to business, the
rate of expansion was more rapid
previous year.
The volume of
mortgage loans completed and of
corporate and State and local gov¬
than
securities
ernment
in
issued
more
banks—in this country
were
and
the
program,
ceilings
as
or
including
—
and
restraint
of
been
consumer
credit
credit
$5
inflation.
the
fixed rate of return.
strik¬
ing characteristics of recent years
has been the large flow of savings
controls had
estate
The restraints
Many of the special,
direct
Policies
Reserve
Banking in Prosperity
Economic
Chronicle..:Thursday, July 14, 1955
The Commercial and Financial
/•
(172)
than
Bank
totaled
loans to businesses,
previous
any
year.
largely
inventory accumulation,
to finance
expanded
sharply
very
in
late
1952 and failed to show the usual
be
could
sustained,
as
was
proved by subsequent events.
The
credit restraints
imposed
principally to check further
served
expansion, but they may also have
been a factor bringing about a de¬
in inventories and
crease
buying
sumer
contributed
in
credit,
on
con¬
which
recession
the
to
in
credit of which bank credit and bank season decline in early 1953.
production and employement that
This is a
and monetary expansion has been deposits are expanded.
In addition, the United States followed. The major factor in this
zation, and
tremendous responsibility because
more closely knit to the needs of
avoidance of
Government, with its expanded decline, however — the reduction
it can be used to foster inflation
in the defense program—was not
defense
program, became a net
important set¬ stable economic growth. Commod¬
or to force deflation.
The guides
ity prices and other values have
borrower of about $3 billion from due to credit restraint. The reces^
backs. It has
past four years,
the
For
utili¬
source
'
been
Thomas
Woodlief
by
from
marked
recovery
under-utilization
the
of
re¬
the
characterized
that
sources
1930s, by a war that required the
of
use
nearly half of
our
output,
by two periods of inflation grow¬
ing out of war and made possible
by inadequately restrained credit
expansion, and by two phases of
moderate recession, each followed
promptly by
cluded
It has in¬
recovery.
extended
periods of eco¬
nomic equilibrium at close to the
maximum
capacity of the econ¬
omy. Throughout these years, par¬
ticularly since the war, there has
been
continued
a
growth in con¬
sumption, in physical wealth, and
in
productive capacity.
Total
output of the economy,
after adjustment for the price rise,
has doubled since 1939 and is
now
fifth above the pre-Korean
maximum. Notwithstanding the
about
remarkably stable, with some
been
prices declining and others rising
moderately.
The declines have
been most marked in those prices
to
demands
activities
from
war
—
notably
had
demands
defense
or
returns
other types of invest¬
on
ment.
These
have
developments
sur¬
celerated
a
trous
inflation
well
growth in population
for price
as
creased
by about 40%
and
5%
by
as
changes, has in¬
since
1939
since
early 1950. In
addition, the volume of current
savings has increased and pro¬
vided capital needed for expand¬
ing our productive capacity.
Overall declines in economic
tivity
only
occurred
in
ac¬
brief
the
readjustment period following the
World
of
end
War
II
in
and
the
moderate, limited, and short
or
readjustments
of
very
recessions
1949
and
1953-54.
favorable
The
economic
most
un¬
of
event
the
period—aside from the destruction
of
the
war—was
tion
that
degree of infla¬
This
occurred.
from the strains of
resulted
and of the
war
defense program and from
excessive expansion in credit and
recent
The total volume of pub¬
money.
Policies
sults.
other fields
and may
actions
and
in
always important
are
Yet
be determining.
ap¬
Events
during
are
eco¬
five
past
the
products
some
while
living has improved. Personal ex¬
penditures for consumption and
for housing on a per capita basis,
high degree of judgment
application. Nor are they
in obtaining desired re¬
nomic growth and prosperity.
that is after adjustment for an ac¬
standard of
a
infallible
affected
by years have provided significant
steadily rising wage levels. Prices tests, in this and other countries,
of
corporate
stocks, which re¬ of the use of monetary policies to
mained remarkably stable kt rela¬
promote stable economic expan¬
tively low levels during most of sion. During the 1930s banks in
the period, have shown a rather this country had
more reserves
spectacular rise since September, than they were able to put to use,
1953, but it is questionable whether and Federal Reserve policies were
stock market prices and activity of
relatively little consequence.
are excessively high for a
period In the 1940s, monetary restraint
of prosperity and in relation to was subordinated first to needs of
in
of government
average
re¬
in their
quire
propriate monetary policies
indispensable for sustained
prophets of disaster.
Some had expected a downturn of
serious
proportions; others had
looked for inadequate growth to
utilize
our
potential
resources;
activities, the
pol¬
not precise and they
are
costs that
much and
and
risen
not
icy
prod¬
occurred
farm
have
prices
some
earlier
a
growing
stimulated
Increases
ucts.
in
sharply in
curtailed supplies re¬
or
sulting
most
specially
risen
had
which
response
instruments of monetary
and
prised
many
number had feared disas¬
It
lapse.
pegging interest rates and per¬
without
at any
quarter of a
past
there appears to be
to hope for a con¬
reason
of
there
was
when
condition
that
restraint
or
at
than
more
ago,
years
called
been
initiative
the
of
policies, the Fed¬
credit creation
on
little
exercise
or
in¬
flation.
Since early 1951, however,
eral
Reserve
policies
have
Fed¬
been
flexibly adjusted to chang¬
more
used
been
strain
They
conditions.
economic
have
times
at
inflationary
to
re¬
developments,
public,
reduction
is
an
cept in war, for the Federal Gov¬
ernment
ous
credit
evident
stantial
credit
ers
showed
bank
vestment
which
ing the active
tinued
1950
has increased steadily since
to
an
amount
times the prewar
with
a
duobling of physical output.
The
*An
the
resulting
address
District
ciation
June
Mr.
Thomas
Federal
public
Thomas
Mr.
Bankers
which
before
Asso¬
Hot
Springs,
Va..
The' views expressed by
should
the
Reserve
that
inflation,
Columbia
1955.
representing
in
of
by
Convention,
10,
extent
nearly four
level, compared
thev
not
be
official
Board,
have
considered
as
views
of
the
except
to
the
been
statments.
expressed
supply—con¬
Thus, the amount of
created
was
money
new
kept within moderate
Total
credit
ord high
demands, at
level, but pressure
rec¬
a
the
on
available supply of lendable funds
and
also
resulted
in
demands for
the
oper¬
was
utilized,
continued
in
expansion
a
of
of
Prices
no¬
that
nature
free
of
would
be
sustain¬
competitive markets.
securities
and
interest
inflationary situation.
Federal
Reserve
policies
limitations
posed
ability of bank
perform their normal
of
keeping
row
functions
bust
arise
particular
cycle
is different.
from
at the time.
hope
course
of
events
we
have
growth
they
do
gives
may
continue
consumers,
Review of developments
for
to
prosperity, but
provide basis for
heavily
'by
borrowers
from
the
Reserve
bank
Member
As
amounts.
more
some
than
a
short
time
curtailment of lending
liquidation of securities in
to
reduce
their
and
results in
as
an
one reason,
and
recent years
salutary
as
they
have been
were
and such
attitude is essential for
tinuation of that state.
why
a
con¬
•
the
and
1953
of
sharply
in
half
of
first
1954; some short-term rates fell to
the lowest level since 1947.
Throughout
credit
1954,
was
readily available on terms attrac¬
Demand
borrowers.
to
for
types of creclit continued to
many
particularly mortgage credit
borrowing by governmental
grow,
bodies.
With
demand
bank credit, banks
available
used
reduced
a
for short-term
funds
holdings
of
to
increase
governmental
their
and
Insurance
real
estate
companies,
sav¬
ings banks, and other holders sold
securities
government
banks
to
used the proceeds to increase
and
business and other loans. Treasury
debt
in
management policies resulted
an
increased
mediate
ment
and
volume
outstanding
in
decrease
inter¬
govern¬
short-term
and
is¬
Banks shifted their portfolios
accordingly.
position
of
Thus
banks
the
was
lowered.
borrowing.
of
long-term
securities
After
mid-1954,
liquidity
somewhat
!
credit
and
monetary expansion proceeded at
an
accelerated
to
continued
pace.
In
expansion
estate loan and
By
.
lenders, has beert
declined
rates
terest
some
for
negligible
consequence
availability of funds, in¬
creased
sues.
debt
a
slackened credit demands and in¬
Banks in late 1952 and early 1953
in
re¬
borrowings at Re¬
Banks declined to
serve
The reluctance of banks
to be
bank
were
addition
in real
in holdings of se¬
curities,
there
was
renewed
growth
in
short-term
business
mid-1952, the most- banks were restrained, from meet¬ loans and in consumer credit.
Korean inflationary outburst with ing all credit demands. A sharp
Loans on securities also increased
its wave of overbuying, overbor- rise in interest rates—to the high¬
'somewhat.. Total loans and. invest¬
rowing, and overpricing, wafe long est, levels in 15 to 20 years—re¬ ments of commercial - banks in¬
past;.the pace of expansion,pf de¬ sulted from the pressure of de- creased more in the calendar year
fense expenditures was beginning mends on the limited supply. The
1954 than in any other peace-time
to slacken; .and there was again higher interest rates acted as art
year. Lending by nonbank credit
leeway for growth in private ex¬ impediment to customer borrow¬
Continued on page 38
penditures for consumption and ing and an inducement to saving.
future.
Caution
businessmen
needed for the expansion
Moreover, the Federal
Reserve
during discount rate on such borrowings
the past three years provides a was increased,
and the Reserve
picture of a complete cycle of busi¬ Banks also took other action to
ness and credit that may be sig¬
discourage continuous borrowing
nificant
for
understanding
the by individual member banks. Thus
they
reason
were
occurred, banks had to bor¬
order
and
by
economy.
avail¬
and
Member
duced and discount rates lowered.
The 1952-55 Cycle
recognized
not
abandonment of caution.
exercised
of
boom
The recent® favorable
of
that
course
repeti¬
Often
not
causes
saving
the
responsible for slackening
reserves
fluc¬
on
reserves
sustained
and
growth.
requirements
reserve
loans.
an
that
rates have been permitted to
economic
each
revival
business
economic
and
generally
overtime basis. With
resources of the economy fully
an
a
im¬
economic growth at a rate and of
experience, as well as reg¬
ulatory devices subsequently de¬
a
money
the
on
was
promote
tive
economy
further
relaxed to
condition of ease in the
market in order to foster
policy
goods and services that taxed the
productive capacity of the econo¬
my. In late 1952 and early 1953,
ating
Federal Reserve
measures,
slackening of demands appeared,
lates
limits.
was
of the major eco¬
any
securities
again
recovery.
of that
and
years,
money
expand, but the annual
rate of
growth declined to 3%
from 6% in the preceding year.
volume.
downturn
a
policy was altered toward avoid¬
ing additional credit restraint. As
early in 1953 threatened to create
then
tuate and to
the
several
Demand
to
and to
for
by 7%.
deposits and currency—represent¬
pacity of the
expansion
of
in¬
deposits,
savings
increased
the
in
major objective has been to foster
incautious specu¬
The example
on
But
and, after showing little
of
portion
included
nomic
substantial
in
before
Even
to promote eco¬
At all times the
and
discourage
lative commitments.
that
war
larger
a
credit
the bank credit growth. To obtain
of
further
smaller rate of increase.
partly
events.
in
a
while bank credit
year,
Furthermore,
tion
currency
in
supplied by non-bank lend¬
much greater than in the
posits
and
expansion
tion
circulation—almost tripled during
banks
non-inflationary
net
was
led to
in
The
preceding
the
of
source
lending.
sub¬
a
able, while maintaining the opera¬
based
slightly from mid-1953 to
notwithstanding the de¬
cline in business activity. Savings
their
to
increase.
to
creased
period, and thus provided
vious
tice,
continued
demands for credit of many types
times
while some types
loans,
credit
continued
consistent with the productive ca¬
money
demands.
nomic
growth
credit subject to call without
business
of
consumer in¬
and
short-term
credit
Fortunately, the public gener¬
ally increased its savings in this
unknowingly stood on
the verge of the greatest economic
collapse in our history. Probably
the principal reason for the sever¬
ity of that collapse was the pre¬
unprecedented
especially
mands,
stalment
mid-1954
vised to prevent its re-occurrence,
The
1939.
be
and
some
the economy is also operating at a
high level and manifesting vigor¬
should suffice to obviate
since
than
deficit
a
in
Demand deposits and currency in¬
supply—composed of demand de¬
tripled
more
have
to
accompanied by curtail¬
types of credit de¬
was
expanding debt when the rest of
and investment, and bor¬
rowing and lending, within limits
lic and private debt has
sion
ment
and
years,
borrowing was in prospect.
exceptional situation, ex¬
more
It
compared with debt
previous
as
in
recession,
at
we
26
limit
the holders of government securi¬
ing
tinuation
has
"monetization of the public debt"
Under such
century.
Even more,
what
mitted
Reserve could
degree of prosperity than
better
in
be stated with
West¬
may now
the
ing the prices of the vast volume
securities that were
outstanding. This practice resulted
of government
eral
Europe, and many other parts
the globe are enjoying a higher
in
later to support¬
ties.
by
confidence that this country,
time
finance and
col¬
followed
ern
of
war
the
Volume 182
Number 5446
The Commercial* and Financial Chronicle
...
rolls
Look (or Extension of Guaranteed
and
which
Annual Wage Demands!
By GEORGE MOSKOWITZ*
Director, Labor Department
in
Research Institute of America, Inc.
the form
thereby
which
other industries.
become
other
on
Predicts efforts
employers, and
many
variants
blueprinted
other
and
by
manage¬
guaranteed annual wage plan with
employer groups in 22 mid-west¬
ern and southern states, evaluated
International Resistence Company
the settlement
of
a
called
The
Focus
settlement
Ford
does
and
for
auto
the
turers
and
ments
may
their
dif¬
freshing
ments of 5 cents
as
the horizon
on
puff
bigger than
man's hand has by 1955 grown
a
to the size of
herald
as
no
cloud which
a
some
a
tornado bound
to
bring
destruction
its
in
wake,
while others
forecast
re-
be
a
will increas¬
due
ingly
duced
nurture
society.
will
go
our
These
annual
and
build
fore¬
casts t end to
endless
an
the
up
to
race
to its
benefit fund
maximum.
(6) The GAW will create pres¬
for easing up restrictions on
which flows
subcontracting and hours of work.
from
such conflicting
and con¬ Greater management freedom in
tradictory statements, a few of this area would permit employers
which I repeat. For example:
to place a ceiling on the number
workers
during
periods of
The goal of the CIO Autoworker's of
Leorge
—
iviosituwi.i
sures
Guar-
a
heavy
due
thereby limiting
guarantees
activity,
losses
and other CIO unions is
anteed Annual Wage.
.
to
With
laws
wage
terms
unions
CIO
Other
of
variety
routes
are
taking
GAW.
to
benefits
:
will set
of
for
a
providing
laid
off
cash
workers
pattern for all Ameri¬
industry.
can
It will be limited to
industries
tion
glass,
rubber,
produc¬
mass
such
steel,
elec¬
as
atomics,
GAW is
companies
the
made
that
Philco
26
same
the
:
cry
was
statutory
Hour Law
revision
for
ment
guaranteed
ployee's receipt
raised
minimum
Wage-
introduced, when
the unions launched their pen¬
was
of corresponding
payments under state unemploy¬
ment insurance, disability or
workmen's compensation laws.
CIO
clearly indicated that
is
GAW
at
the
over
or
top
their bargaining agenda.
of
Within the AFL, unions like the
Teamsters
Machinists
and
have
of
a
But
interest
or
any
investments.
prior to final payment.
The
death
includes
program
benefits
ranging
$1,000
from
to
$2,000.
of
can
what
sell to its members
under that label. The AFL Team¬
announcing
sters,
new
contracts
the
with
signing
the
of
seme
conse¬
of the guaranteed annual
the
craft
pure
structure of their unions.
Effects of
Indirect
GAW
>
Many companies not concerned
with
the
problem in
find it wise to re¬
view questions like the following
any
in
guaranteed
form
the
may
near
What
future:
happens
to
rates?
pay
Early this year collective bargain¬
ing settlements averaged around
six cents
hour. When the Ford
an
settlement
was
the
announced,
union calculated the total package
20
cents
which is
an
in
the
CIO
hour
figure
a
—
to influence negotia¬
sure
tions
other
industries. Already
Steelworkers
Union,
of
Continued
major
four
a
endanger
wage
at
Sometimes GAW is simply
the union
that
quences
owed because of
payments would be
the individual ac¬
the
aware
money
out-of-work
dif¬
on
made
Others, more purely craft in mem¬
bership have shown less interest,
undoubtedly
because ' they, are
Any employee retiring or leav¬
ing the industry after age 60
be guaranteed a monthly
annuity. The source would be the
employee's
individual
share of
employer contributions, plus divi¬
bargaining issue
guaranteed annual wage.
already
would
issue—this
wage
these
in
The
have
the
would
It
unions
steel.
on
page
33
unemploy¬
of
laws: (a) to
permit integration of private plans
with state benefits and (b) to lift
compensation
basic' state
;This is uttder
higher
to
payments
such
levels.
has various
circumstances to be construed as an
a
July 13,195$
EL MOROCCO ENTERPRISES, INC.
(A Nevada corporation)
For in¬
causes.
offering of these
solicitation of an offer to buy, any of
securities. The offer is made only by means of the Prospectus.
or as
New Issue
plan for minimizing the worker's
risk of unemployment. Unemploy¬
ment
no
Securities for sale,-
'
;
Pennsylvania, and I quote, "There
can be
no single or all-sufficient
only
proposal.
a
chemical,
fields
com¬
ployed, sick, injured or disabled.
Eligibility for payments in any
week would depend on the em¬
In
mention
year or
two:
atomics, oil,
electrical, maritime, railroads and
payments of $25 a week for
weeks if they become unem¬
count
no
a
within
these
of
rubber,
Employeesl would draw out-of-
CIO
Electrical . Workers
signed
a
contract
with
Union
by
Electrical
out
one such form
or
following industries
in
the
work
ferences in i approach.
Ttye
another,
-.'.v have GAW in their future—many
posed
of
worked
deducted from
the
get
national
and
state
when
can
take.
The
levels
at
under¬
commitment which
a
big
the
action
has
it's
note
A
'
Starting
pay
provide:
this
to
extra
into
mind, the AFL Interna¬
dends
According to Dr. George Taylor,
Professor
of
industry
at
the
Wharton
School,
University of
tronics and chemicals.
.
tive
"■
ployment
looked—even lost
important
the
put
obstacles
is being over¬
sight of—in the
wake of the UAW settlement. Yet,
cases,
be
bination insurance-annuity-unem¬
despite the fact the IUE-CIO pro¬
The
settlement reached
by the
claimed GAW as the keystone of
(7) Ford's offer to supplement
Ford Motor Company provides
its 1955 national bargaining policy.
for
supplementary unemploy¬ unemployment compensation will
On the other hand, the same
create new pressures for legisla¬
ment compensation.
principle
will
Brotherhood
Workers
both
of
materialize,
the
in
tional
when business falls off.
The
not
cents
state unemployment compensation
cost and retirement benefits.
many
compound
confusion
in
modifications
long distance
a lull week s
and
will
if called in for any part of a
week..,, (The
mid-west
contract
However, the details of the provides that 90% of the regular
plan to assure employees' pay for drivers employed by each opera¬
52 weeks a year have not been tor are to be guaranteed 40 hours
worked out. If an acceptable plan work or 40 hours pay.)
others, it went through important
—
of
cost
benefits
con¬
flicting
operation
envelopes, this money
into an interest-bearing
of
fund.
adopted first by steel and then by
periods of re¬
still face the
supplementary
inevitable
to
hour would—
local
185,000
pay
many
an
hour
an
truckmen
GAW
showers which
a
pppeared
1946
cents
is equivalent
as
guaranteed annual wage. About
pay
settle¬
substantially
be
How
ferent.
the
settlement
into
not
manufac¬
parts
suppliers,
nine
for
envelopes.
■>.
set a GAW pattern.
For the marginal auto producers,
a
The
across-the-board. Instead of going
agree¬
primary consideration to
employers as
a
way
of ments are tailored will be heavily
avoiding GAW demands in union influenced by both employment
experience and ability to pay. In
negotiations.
(5) GAW will create a hazard other industries, these factors are
for smaller companies which Ford already proving more decisive.
In these respects, the collective
apparently has calculated it can
risk. While the prospect of main¬ bargaining history of 1949 is likely
to be paralleled in 1955. The pen¬
taining
employment
at
current
levels will enable Ford to build sion plan first accepted in 1949
up its $55
million fund, smaller by Ford was shaped and reshaped
firms, even though making pay¬ in the following months. As
•
in
Philadelphia.
does
;
necessarily
business expansion.
on
of
scores
been
union negotiated its first so-called
nine
stabilize employment will
to
package
Getting GAW into
the part of labor union officials in
damper will be placed
Wb?t
unions
Ford
ments.
Workers, since there has been created
primary consideration of
a
have
Ford Company and General Motors
militancy
a new
the
of
the
of
one
or
Mr. Moskowitz maintains business management will have to
make adjustments as a result of the Guaranteed Annual Wage
with United Automobile
important for
executive to have a
bird's-eye view of the basic types
o,f challenges which GAW presents
to
management — whether im¬
mediately or remotely, whether
top
every
agreements between the
practices in companies
not organized.
are
That is why it is
*13
(173)
I
campaign in 1949, when stance, a downward cyclical move¬
other fringe benefits rippled out ment of our economy cannot be
effectively grappled with by a
across American industry GAW
single
company.
Measures
to
will stabilize employment.
sion
It will
introduce
immobility into
handle
prices
In this
Consequences
of
the
What
Ford-UAW
fancy. It is
impression
my
that it is not unreasonable to
clude
that the
ment
will
produce
GAW
militancy
following
the
create
the
part
new
a
labor
of
officials in other industries
their
approach
to
col¬
future
lective bargaining sessions.
7
year
ran
industries
1955
at a
higher price even though they
may
not have to make a GAW
or
historic
The
—in
cents,
which have yet to bargain in
will probably have to settle
TRUST AND SAVINGS ASSOCLVTION
July 1,1967
Price 100%
economic
and
Non-union
terms.
Due
have wise effects
social
both
i
settlement
auto
will ultimately
Bonds
Authentication
well
as
as
unionized companies will feel the
must
consider
now
ment
adjustments
entrance
the
1,950,000 Shares Commbn Stock
manage¬
which
labor
the
on
GAW's
(10^ Par Value)
will
scene
require.
Price lOjzf per
Many
businessmen
are
con¬
increases vinced that a
guarantee of annual
While
average
negotiated earlier this
(2)
6
Dated upon
impact, indirectly if not directly.
Employers both small and large
hj
will
on
con¬
Ford-UAW settle¬
consequences:
Annual
Guaranteed
Does
Pay Mean to You
much of this is fact—how
much is
around
BANK OF AMERICA NATIONAL
with Dr.
concur
Trustee
Settlement
in
respect I
Taylor.
sures.
union
8% Sinking Fund Debenture
assigned to government."
and accelerate inflationary pres¬
(1)
$6,000,000
of
general unemployment have been
the labor market.
GAW will tend to drive up
How
situation
nationwide
a
pay,
toward which the auto indus¬
try has taken
pletely
of
Share
first step, is
a
outside
in
management
Others
system.
com¬
Common Stock available only to Debenture Bond
responsibility
our economic
the
feel
just
$100 to
-10
purchasers
as
shares for each
follows:
$100
$10,000 to $39,900 in principal amount- -15 shares for each $100
-20 shares for each $100
$40,000 to $69,900 in principal amount-
ear¬
as
$9,900 in principal amount-
nestly that business and the coun¬
try as a whole will benefit by the
(3)
GAW will create serious
hoped-for stabilization of produc¬
adjustment problems in other in¬ tion and
employment in basic in¬
dustries, particularly for smaller
commitment.
$70,000 to $99,900 in principal amount-
-25
shares for each
$100
$100,000 and over in principal amount-
;
-30
shares for each
$100
dustries like autos.
and
financially
weaker
compa¬
Like
nies.
with
(4) GAW will create
a
the
tempta¬
concepts
fringe
pay,
holidays
of
benefits,
El Morocco Enterprises,
39 Broadway, New
sions, etc., the GAW will now be¬
more
conservative plan¬
come
part of the basic thinking
This may lead to lower
in the organized labor movement.
levels
of production
as
and if
In industries where it is practical,
managements seek stabilization of
its pressure ^ill take the form of
jobs rather than rapid growth. Ef¬ sharper demands for
higher pay,
forts to stabilize employment will new fringe
benefits, shorter work¬
tion
"T"
T
.
^
*An
York 6, N. Y.
to
Please send the
ning.
.
.
address
,
•
by Mr. Moskowitz before
Telephone Associa¬
tion, Scarocn Manor, Schroon Lake, N. Y.
the
Inc.
pen¬
New
York
State
undersigned
a copy
of the Prospectus relating to El Morocco
Enterprises, Inc.
Name
I
j|
Address.
j
i
*
■
*
'.
*
Zone- .....: .State
City.
weeks. The
resulting union gains,
turn,'will ripple out in everspreading circles to affect the payin
1
.
t
;nt
J '
,
j
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"ft
--
•
,
.
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I
14
The Commercial and Financial Chronicle..
(174)
governing
Prospect of a Labor Government
increase
and
of the outstanding
headers of organized labor to es¬
tablish
of
ment
Socialist
a
labor
United
the
govern¬
is
States
be¬
coming
more
evident
every
Listen to
argument
day.
thi£
made
by
A
rican
e
m
the
Federation
of
in
a
Labor
I
which
case
argued against
in
it
Su¬
the
preme
Court
the
United
of
"ine worker
becomes
member of
Richberg
R.
.
in
the
sense
a
responsibilities of
You
do
munist
to
govern
such
well
in
order
to
political
the
understood
labor
ern
Com¬
a
of this society.
government
is
.
economic society
an
control
must
you
be
that
konw
.
and
powers
to
by
leaders
This
mod¬
our
their
and
such
im¬
Perhaps
whether
ruled
Communist
extortioners
and
ruled
by
bosses
snould
other
violent
and
It
strange,
tive
trade
in
offices,
liberals
that
noble
in
expected
Lave
laws
union
action
which
enacted
to
favor
then
and
closed
union
a
force
shop
all
employers ev¬
erywhere to agree not to hire or
to retain
not
join
submit
employee who does
union, pay its dues, and
its discipline.
any
a
to
There
is
nothing imaginary
uncertain
tion
of
and
about
union
maintain
all
over
this
a
to
is
all
too
denounced
If
make
who
industrial
employments.
"We
of
summarize
can
union
the
of
as
nature
a
com¬
employment in
industrial
society by
again
comparing it to citizenship in a
political society.
Both are com¬
an
pulsory
individuals."
upon
Some
people may think that
compulsion to join a private union
as
universal
a
fore
any
lowed
to
violation
a
doms
requirement
wjlling
earn
of
which
a
fundamental
are
be¬
worker is al¬
living would be
free¬
constitutionally
he
enemy
an
by
of
tions
concerted
action
better living
under better con¬
is
a
also
the
aim
of
organizations
that
claim to holy virtue and
no
from
there
whose
is
vast
a
difference
voluntary organiza¬
members
resign
they don't like their policies or
their management, and a closed
shop union whose members are
can
if
compelled to support union poli¬
cies and union bosses, or lose their
livelihood.
a
that
contention.
from
the A.
short
I
But
to
answer
quote
again
Compulsory Union
Membership Means
The most
attitude of
their
founded
a
social
equality,
upon
and; law.
organization
The
union
is
justice
that
or¬
ganization for employees."
To put this in
simple language,
I
and
—
the
these
gov¬
bigger and
more
tyrannical.
more
demand
for
individual
freedom, which seems to be born
in
every
human being, became
strong enough to challenge all the
old
concepts
of
a
compulsory
society governed by a divinely
qualified
ruling
class.
A
free
society of free
a
maintained by
men
free government became the ob¬
jective of millions of people.
with
in
America
is
for
seemed
decades that such
society
free government of limited
many
a
a
was
being achieved. The
only challenges to our ideal of in¬
powers
dividual
liberty, the only demand
unlimited
for
small
from
intention
to
establish
compulsory membership and
unlimited
governing
power
an
in
should
be
a
voluntary
society. The development of socie¬
ties of human beings to work to¬
-
gether for
has raised
common
man
civilization.
benefit is what
from animalism to
Even
voluntary
a
society
must
have
some
sort
internal government.. But any
of
government is the power of
rul¬
laws
and
obey
class to lay
force
others
to
a
down
ing
more
them.
government
lutely
necessary
than
is
ah
is
So
abso¬
evil
government,
of
number
come
Socialists
ship in
a
as
long
as
member¬
society is voluntary
some
restraints of individual
liberty are
not oppressive and are
necessary
to
prevent
the
disorder
and
destructive results of anarchistic
freedom. In a voluntary
society of
scientists
or
businessmen
or
all-powerful
an
denounced
were
action.
and
appeal to the
We
told
were
of
that
re¬
more
Whether
listened
we
Fascists, ' Cqmritanists,
to
those
or
milder Socialists who called them¬
selves
that
"liberals,"
all-powerful
were
coming
of
wave
the
riod
the
last
ganized
told
were
governments
irrisitibly
on
the
future.
the
In
we
20
political
power
of
worst, have developed
Napolnonic
the political
of
concepts
making
big government! sub¬
servient to big labor.
They} seek
of
power
to
control
tely
as
immedia¬
government
their ally, and eventually
as
their servant.
The :older union
policy
of voting, for friends and
against enemies, but avoiding po¬
litical
partisanship,
abandoned.
has
' been
The modern
member
even
a
An
union.
right to join
worker
.Annual
a
a
However,
this peculiar h'berty does not
include
the
of
a
address
cnooses
by
Luncheon
any
union
because,
Mr.
Richber-sr
Meeti^e of the
un¬
at
of
such,
a
members that they can
re¬
gain
re¬
always
freedom by
individual
signing.
union
and
bidding the highest for
[
favor.
The Creation of
a
Governing Class
Unfortunately, the
Asso¬
creation
of
society such as a community,
nation, or a union develops a
and
Threat of
Labor Dominated
a
Political Power
;
political
labor
veloping
would
have
be
ward
a
not
working
the
labor
national administrations from 1935
unions.
situation
emphasize
labor
of
political
s
power.
of the
grow¬
ing welfare state a political pro¬
gram which appealed to millions
of voters like
farmers, small busi¬
and white collar workers,
would
not
previously follow
labor leadership.
h
have
we
President
vigorous
despite
opposition
to
state, has advanced
state
projects,
social
of
education
has
to
union
been
many
the
tory
to
Eisenhower
from
Ad¬
satisfac¬
labor
Socialist
a
public
of
worthy
applause than
Qf course in
far
is
control
Federal
extent
given.
ways
welfare
example,
Federal
labor
ministration
welfare
a
for
and
an
earlier
many
as,
insurance,
works,
Republican
a
who,
any
labor's
a
vious. The Democratic party
political
power
was
ob¬
could
evident
the
from
they
sure
con¬
can
and
more
more
huge unions.
large that the
member is lar more help¬
to
leader¬
well oppose some of them.
his
Secretary
of
Labor
many
advocated
unionism
the
the
compulsory
that
President said
Secretary
spoke
for
nimseil
alone.
We
have
Demrocatic
a
Con¬
Eut, there are many Re¬
publicans in Congress wno are
easily
persuaded
arguments
labor
Democrats
not always suvservient to
are
strategy
labor
it
So
demands.
union
union
by
many
is
still
make
to
bi-partisan
a
a
and
sure
government
a
in
that
always command
can
bi-partisan majority in its favor
crucial
on
issues.>
oi
course, myre
pro-labor legislation
bor
law
and
enforcement
pro-la¬
always
is
desired, but the prevention of
action
free
to
other job.
today
How
Most
stand
how
helpless
and
important
monopoly
ti.is
is
most
the
maintain
to
nomic power
ana
eco¬
of the labor unions,
tney
accompus-.eu
nave
during many years tnrou0n
partisan political support.
So
long
unions
as
to
paralyze
brutal
vital
farce,
ustries
in
labor
ahow
we
use
bi¬
and
to
to
compel great business enterprises
to yield
to demands that
fair
and
the
union
abie
injurious
restraint
by
their
effective
any
govern¬
indeed
are
be
private
public
our
These
pub.ic,
will
bureaucrats
tyrannies superior to
un¬
are
the
to
maintain
to
the
only
private organizations that are per¬
to
vicious con¬
public and pri¬
open disregard
out
carry
against
interests
vate
in
of the laws taat elsewhere protect
of
and
business
lives,
property
have
can
is
not
surprising that such a
now seeks openly to
Ciass
society
government
compulsory
a
their
under
personal
to which all workers must submit.
the unionists have been
authorized
by Federal laws to
autocracies
with union shop contracts under
which
every
worker must pay
fortify
their
private
them tribute and
to their
become
subject
rule.
a
that
barrier
t
e
now
to
Shop State Laws
stands
city
laws
of
18
a
legal
unionism
which
states
There is
compelled
happily
Taft-Hartley
state
one
Act
laws
which
to
to
sign.
clause in the
be
permits
enforced.
govern¬
from,
resign
can
this will not deprive
Of
if
course
union
a
when
and
monopoly of the
employments for which tney are
fitted they will probably submit
to
compulsory unionism rather
than
starve.
Competition Between Unions
Nevertheless, there is plenty of
that high union official?
evidence
worried
are
by two things.
One
competition between unions.
is any
other
The
is
competition be¬
any
union
tween
workers
workers
submissive
and
inde-
workers.
They want to
end both competitions. First, they
would stop the unions from com¬
peting for members. Second, they
would
end the competition be¬
tween
workers
by making .'all
members,
non-competing unions.
in
the
I
argument
have
which
to
Supreme
f
of
AFL,
Tne
Court,
previously
re¬
ferred, made this desire and pol¬
plain
icy
thrive
the
in
extraordinary
cannot
that—"workers
contention
but
only
can
under
die
competition between themselves/'
is
It
curious' fact
a"
thousands
been
of
for
another
one
but
dying,
that
workers have
years
competing with
without
with
better
living as a consequence. Despite
labor
organizations
that
from
time
have
time
to
limit
sought "> to
end
competition between
workers they have, under persist
tent
competition,
steadily
im¬
proved
their
abilities
and in*
creased
their productivity. With
the
or
of
aid
machines
managerial
devices
other
and
increase
to
productive capacity, which labor
organizations
have usually ♦ op¬
posed, the persistent competition
wit
workers
of
has
workers
i
stand¬
ard of living incomparably higher
than was even imagined in an¬
cient days. The greatest restraint
on
the continuing increase of the
brought
about
workers'
productive capacity is
today by uniform union
imposed
wages
to
bor leac
which
this
end
de¬
are
beneficent
Yet, in disregard of
competition.
economic
average
an
rules
and
history,
outstanding la¬
try to make us believe
ers
that ' workers
only die under
can
competition."
The
real
appears
profit
fear
cf
their
or
competition
labor
officials
of .ices
for
may
die
even
their
services
petition.
union
tested
e
by
sup¬
value
com¬
customary
claim
practically all union
mem¬
are
Their
be
under
voluntary
They fear to have t.
port.
bers
of
to be that the power and
diminished
is that
as
compusory
forbad the union closed shop con¬
tracts which in other states em¬
these
living.
there is
of
The Anti-Closed
are
as many
bad
them of every opportunity to earn
Already
All
voiceless,
they
union ii
considered.
choices.:
two
remain
accept
Or
ideas:
inevitable,
and accept the
ment.
of
as
pol¬
their
fairly
one
are
union
have
just
signed
free people.
a
complaints
They
a
under¬
they
control
to
even
citizens
today
men
to
They
job-
a
by
union?
union
or
the
he get
can
when v blacklisted
monopolizing
any
indus¬
against
tyranny than he was years
ago
helpless to protect himself
against a hard employer. In olden
oays he had a chance to, get an¬
pendent
gress.
who
himself
protect
union
ship.
It is too friendly to free
enterprise. The President does not
espouse all union programs, and
ployers' 'are
The strategy of increasing union
less
or
Now
Labor politicians found in
the veiled socialism
not
are
icy,
establish
iparty
be
tinue to persuade
velopment
favored
which would have majority power.
The labor partisanship of all the
should
individuals
or¬
dominated
main¬
a
present
de¬
shrewdly to¬
It
union
the wisdom of tnis bi-partisan de¬
of
party, which
minority party, but
d
Demo¬
be
possible.
The
prospects of the 1956 election and
been
labor
a
been
machines
have
must
wherever
tained
It
I
ganized
activities.
of
support
minority support
Republican socializers ob¬
from
the
nessmen
-
tained
a
still
government
bi-partisan
spiracies
who
the
rted Employers of Illinois, Chicago,
government
society forces needless or unfair
obligations and restrictions on the
labor
majority
party
the
enterprises
these state laws.
average
for achieving
cratic' socializers
possible
to
whose
party.
required
The
mitted
private
right to refuse to join
vnion, but only the right to be
Socialist
deliver all
votes
leaders
and
the strategy
So
candidates and then to
to 1953 increased enormously both
a
Democratic
ment.
candidates
interstate
the unions would be permitted by
Federal law to ignore and nullify
ism would help to counter balance- workers to
join their
the unconverted sections of the These unions are so
policy is
put heavy pressures to support
labor programs on all parties and
to
all
in
com¬
other¬
ficials
segments
conversion to welfare state social¬
coercion
Ambitious labor union of¬
both
the
best
and
the
wise
because
had
or¬
of economic
unionists
demned and abandoned because it
try from organized labor violence,
labor has grown steadily
pulsory
campaign
against
state
right-to-work laws that union of¬
pe¬
American worker does not in¬
zn
not
government
of this
years
the size and the influence of labor
clude
could
sound
individual
less
This is most offensive to the
The
union
more
its
and
power still
particularly in
the
Republican
party
be
completely
con¬
—
South.
discipline, less and
liberty, were in¬
forceful
workers
a great deal of
discipline
gladly accepted. But if the
survived
and
government,
more
more
voices
as
pros¬
will be
that according to
self-government
openly
on
into
of centralized
whose program to make everyone
The
oppressive sevitude.
local
dependent
that
changes the happiness and effi¬
ciency of willing cooperation into
an
unhappy
submission
to
an
course
completely converted
Socialist labor party, because in
areas its historical devotion
some
When
ficials,
fundamentally wrong
labor leaders today is
plain
be
not
a
more
liberty of
would explain
this labor argument the
*
powerful
Then
As
their
larger
grew
ernments became
power.
a
Of
par¬
ticipation in
organized.
were
societies
What
F. of L. argument:
"The liberty of the individual is
not the right to
license, but
tions
with its vast increase
.
guaranteed to all Americans.
union labor has
traders, workers
and fighters, communities and na¬
evitable.
criticise
what
membership
condition
mon
unions
many
as
This
immunity
power
quote again.from the Supreme
Court argument of the A. F. cf L.:
in
anyone
other
many
or
I
assume
essentially
angelic
in
labor. Now, as a matter of plain
fact, unions even at their best, are
simply organizations of men and
acquire
monopoly
all
character.
and
pering millions of free Americans.
Then we were forced by a great
depression and two world wars
into
tremendous
expansions
of
government power which we had
always opposed. Voices of protest
determina¬
officials
conceivable
every
Merchants
societies
disgrace
But
forbid
of
political
criticizes the vicious practices that
between those
that
and
state had little
labor.
Second, repeal all'the state laws
execu¬
admirable
and
objectives.
themselves
of
under
are
to
are
purpose,
operation,
that
the courts,
unions
in
their
unions
legislatures,
or
are
all
ditions.
concert
ex¬
however,
for
a
as
economic
Here
is
The
beings, for
protection, formed
mutual aid and
law."
trying to make
in
tyrannical
"equality, justice and
are
least
unions
be classified
women
at
merit
flattering description. You
m a
y
wonder
whether
unions
which have been run by notorious
political power
objectives:
First, unite all labor organiza¬
tions either in one federation or
various
unions
mediate program to
increase their
has two principal
you
a
discussion
.
in
equality,
upon
law."
wonder
may
whenever
government."
a
need
not
and
an
.
It has
justice
admitted.
never
For centuries human
included
are
founded
so¬
economic
government of this society.
or
unions
of
are
influence of power is
one of the few positive laws that
every
social
scientist
should
recognize.
shop agreement,
ization
a
ciety when he takes employment
The union is the organization
.
kinds
always
are
corrupting
the description of a "social organ¬
emplars of
States:
Donald
union
a
or
intentions
by
tentions
he
must
join the particular union
which made the agreement with
his employer, or else lose h.s job.
You
may
also note that all
der
happier,
more virtu¬
tion to rule the lives of others for
a
The purpose
rises
personal profit or glory. These in¬
governing class. Stresses vast
of economic and polilical power of organized labor,
sees threat of a labor dominated political power.
thus creating
Some¬
rising rulers. Some
times power hunger is just a base
desire for power itself, an ambi¬
membership along with unlimited governing powers in a volun¬
tary society,
prosperous,
These
claimed
compulsory union
a
inevitably
power
to
ous.
a
today is their intention to establish
leaders
for
distrust
more
labor union has in a sense the powers and respon¬
sibilities of a government, holding that this would mean the
establishment of a socialist labor government in the United
States. Holds the most fundamentally wrong attitude of labor
that
neys
desire
ambitions to make people
attacks arguments of labor attor¬
One-time NRA Administrator
this
from apparently laudable motives,
RICHBERG*
By DONALD R.
that
class
seeks to increase its power.
times
.Thursday, July 14, 1955
loyal supporters of their
bosses
non-union
and
man
that
is
a
only
menace
the
to
union solidarity. But now and then
an
authoritative unionist reveals
the
truth, which is that tee object
unionism is not
of'^compulsory
Continued
cn
page
31
Volume 182
Number 544S
Financial
The Commercial and
...
Chronicle
can
How to
The "Guaranteed
Gauge the Top
to
Robert S. Nattell & Co.
on
or
-U
day
any
in
or
week, but
any
Mr. Nattell
more,
-
the "top" of the stock market is
out
covers
stresses the
chological atmosphere"
as
of "a certain
presence
indicator.
an
labor-saving devices
period of six months
a
Also notes
Supposing the principle of
a
weak¬
market top,
m
terious
that
tnings
can
y s-
at
market
most
like
guessing
is
highest;
only
it
start
climb
to
i
their
optimism.
Bond
as
s
Market
from
As
always
months
six
Market hit
a
five
badly
Robert S. Nattell
100 get out and stay out
near
the top
of
tne
every
talis
first,
j°Pi
„
in the middle
market.
tightened.
money
the
Bond
Market
At
hit
its
high last December 1954 and
Cently has
been sagging
tighter money conditions.
anywhere
stock
the
to. one year be-
its high
as
present
out
,
ol
a
of 1928 and during 1929 bonds fell
Because
only
result
a
re-
value
most
of
Labor
other
be
life
is
Unions
that
to
the
the
Unions
Capital to spend money
creases
or
reduces
costs
production.
ber
the
of
Exchange.
of
union
agree-
ment.
Higher
and
«
With Edward D. Jones
ef-
(Special to The Financial Chronicle)
ST.
LOUIS,
employment
only
in
the
amount
resources.
left
more
it
were
for
not
Capital
in-
so
living that the
of
end
the
fits
Co.
west
mem-
Mid-
Stock Exchanges,
In
system,
his
returns.
prosperity
and
an
wageworkers
mizes his
of
devices.
(employers)
private enteremployer bene-
our
and
most
when
Capitol Securities Opens
SALT
jobs and
more
wage
^or
only
We
when
have
real
there
are
~
LAKE
Capitol
CITY,
Utah—;
Securities, Inc. has been
formed
with
.
in
offices
RltllHin- fn
rlties
the
in
he minimizes his costs and maxi-
year
inventions
the
prise
little
have
would
the
at
labor-saving
under
however,
their cost of
&
of
reason-
their
wage- earner
jones
Street,
Yoik
bers
price.
Long-term contracts
should be entered into only if they
assure the most economical use of
may
victories,
the
able
labor
and
temporarily raise
tHeir standard of living.
Most of
benefits
to
D.
New
A.
added
Fourth
the
-
Louis
—
been
Edward
of
North
300
Mo.
has
Bonafede
gtaff
needed and at the lowest
for-
Howard, Weil, Labouisse, Fried& Company.
'
To do this the employer must
be free to buy his raw materials
wages, shorter
hours, and un-
Roger W. Babson
Stock
was
in-
nciently.
labor
or
Orleans
Whalen
richs
healthy
enterprise profitably
an
New
Mr.
merly in the trading department
^
by legis-
Blaise
with
D'Antoni, Carondelet Bldg., mem-
is dependent upon good
business, which is the operation of
se-
associated
become
on
and
A
Thomas
Whalen and Manuel A. Sala have
economy
can
made
cure
crease
in~
(Special to The Financial Chronicle)
NEW ORLEANS, La.—J.
research, inventions, and advertis-
think that >ing—which
somehow
madly in
•
costly
one.
ers
investors
as
and businessmen borrow
gen¬
11 y
era
very
number
companies,
i 11
force
sign of a market top
tightening of money. Interest
a
a
Many work-
the
wnen
to
benefit?
their
of
them
more
Blaise D'Antoni Staff
only two ways to get
healthy increases in wages.
One
is
through producing more by
working harder and longer.
The
other is through new inventions
and products that cut costs and
increase
output.
The
greatest
wageworkers
stocks sell
can
and
J. T. Whalen Joins
are
workers really
grand
characteristic
guessing
game
large
of
is at its best.
rates
a
game
And
spreads
:
pessimistic state¬
a
There
compensation,
Another
is
exactly
when.
their
in
of
make
to
sure
vincible.
greatest benefit to workers.
guaranteed
lation
to
seems
unemployment
Hardly anywhere
come.
read
This
news
it.
It
so-called
officials
unanimous
predictions
top. For only then
suddenly
drops from
10
you
ment.
day
the
100%
were
optimistic
occurs
and
government
nessmen,
the top has arrived. To most
peopie tms is ci
certain
well
as
the
w
One of the most difficult
things
for any investor or
speculator in
the stock market is to know
when
a
ci'
low-priced speculative issues. Finds over-buying
by speculators as a cause of market break.
of
a
of
as
some
annual wage, or an extended form
tight¬
as a
money as a
ening
of
form
psy¬
ening of
sign of
Wage" spreads
is
stronger
large number of companies, the result will be higher
a
reached
not
workers
rents, higher prices and greater interest rates, and therefore
there will be little benefit to the worker. Sees inventions of
Registered Investment Counselors, Los Angeles, Calif.
legislation
Only
it.
prevent
which
truly increases the effi¬
ciency and savings of the wage-
richer,
Mr. Babson points out that if the "Guaranteed
By ROBERT S. NATTELL*
Feinting
Wage"
By ROGER W. BABSON
Oi the Stock Market
■
15
(175)
F
Dus ness*
Dar<.pril_
a
g Tg w'if
•
a
principal of the firm.
more opportunities
people.
more
Walter Dames Opens
area ^er connected at the bottom by a
What Does Increase Security
POTTSTOWN, Pa. —Walter E.
higher prices and then get ine
marginal companies repre- pipe
-phe pjpe represents the
Dames has opened offices at 373
and Wages?
caught as the market turns down., s
,mg i
a
,d?gs
channels of trade. The water repHieh Street to engage in a secuBut for most people they
simply
get weak way beIore .th<: resents income. The Capital Tank
To say that we shall stabilize " fe'husTness
ride up to the top toboggan down.
is biS and holds lots of. water; our economy by a guaranteed an- nt es Dus nes *
only to
soon
hiahpp
at
at
Many
sell
out
back
come
nrippc
too
iv
thop
know
what
the
«Qf
Actuallv if
von
hUrrorv
nf
Sh
companies
representing
the
most
and
Tank
Labor
^marketholds
*
is
J?%
tn
J?1S
\ng
♦
I?
March
and
have
been
sagging
0,?.? despite continued advances in the
"5
;
s'
*
wageworkers in the long
'Let's Not Fool "wins" strike
Ourselves
jf
Labor Union
a
-j
^
hpfnrp
before
the crash. By the
actual,
top
u
top
down
\
money.
In-
trades
the
on
as
many
exchanges. .This
before
k
^
had
handful
a
high-
tember
1929.
of
This
just
up
near
broad list of stocks doing
sagging
has
of every
40
the
occured
in
peaK
the
popular
moment
a
the
cently
the
est
of
of
peak
our
volume
hit
as
declining
the Dowhit
average
a
new
highs,
the
is
hitting
the
it at
top
small
So,
do
market
psychological
Things always look
and
there
is
hopes of things getting
better. If you look over Lie oiu
newspapers of the previous Bull
top
all
market
areas,
you
the
will
in
the
minority
read
the
"experts," services,
letters, bankers, big busi-
No
way
*An
address
July
by Mr. Nattell
T"as. masters,
5,
before
it
doubt
xr
con-
not
Union
really
Labor
an
or
depth.
As fast as such an in-
in capacity (or efficiency)
place, the water will flow
into the Union Labor's tank automatically, and no wealth or power
crease
takes
re-
increase,
opened
a
&
the
WEST
The firm
Rr»n/*k
xj
SALT
LAKE
Honnold
and
nnpnpH
a
apen^ L
Company,
"
nffi„
o
_t
lu
management
Offered
any
as a
Speculation
Common Stock
per
be
Price
share)
$1.00 Per Share
t
.
name
of
the
Building,
Copies of the Prospectus may be obtained from the undersigned
only in States in which the undersigned may legally distribute it.
South,
has
been
changed to Security Planning, Inc.
Wish H. V.
(Special
to
Thf
is
Satt'.ey Co.
Financial
with
Mich.
Inc.,
H.
Hammond
Ch
—
V.
35 Wall Street, New York 5, N. Y.
onicle)
John
Sattley
Barrett Herrick &
T.
&
July 12, 1955.
Building.
I
=«
?
Fa„t
of J. W. Shields.
Stewart Oil & Gas Company
(par value $0.10
hai
Inc.
Fourth Street South, under iIk*
750,000 Shares
BEACH, Fla.—
of Investors Plan-
Corooration
Harvev
Co.,
Utah
CITY,
hranrh
NEW ISSUE
PALM
—
has
-New Honnoid Branch
-
an offer to sell nor a solicitation of an offer to buy
of these securities. The offering is made only by the Prospectus.
a
^ow Security Planning Inc.
Martin
Mex.
Jaquith
branch office at 112 See-
a^d
will
r»i
c
Westwood,
1955.
money
N.
tion of A. T. Montoya.
can
get a greater proportion of the
total water in their tank only by
increasing the capacity of their
tank—that is, its length, breadth,
this time,
DETROIT,
International
Inde¬
princi-
ond Street, S. W., under the direc-
Kirchner
biformed
well
cf
/nly
past
investor^ gur out
out.
same
ring
iron-clad
Market
top
stayed
'
every
is
ALBUQUERQUE,
Carrol,
not
time.
of
^e
a
Carroll Kirschner Branch
greater proportion of
complicated than
more
lucky
or
highs,
new
certain
a
wonderful
Calif.,
is
a
This announcement is neither
most
more
today.
as
most people
atmosphere.
how
The
since.
ever
is
market
recently—over
many
are
though
ealize
At
Union
Discovering the top of the stock
previous top areas, less and
stocks
there
"water"
obtain
steadily
market
ven
The
run.
of
points lower than
in
rates.
tains
transactions occurred in December
when the Dow-Jones
Average first hit 400 or nearly 69
twice
North
tank illustration, wageworkers
For only
Labor
have the increase in its tank.
nine months before the crash. Re-
December,
less
the
benefit soon flows-back to the big
tank by - way of higher rents,
higher prices, and greater inter-
people realize. Knowing the
signposts along the way certainly
helps. History has a strange way
of repeating itself, because human
nature
never
changes. In /every
as
does
actions occurred in November 1928
nothing
high of nearly 460,
up over $5.00. Yet out of the 1,234
stocks traded
on
that
day only
116 actually hit new highs. Last
stocks
318
at
Ray Estill is
market
near
(July 5, 1955)
^
longer before
or
tne
1954 and volume has been
Industrial
stock
market in
Bull
& Inv.
^
the world's wealth only by increasing their real efficiency by
means of their heads, hands, or
inventions.
To go back to my
Wage, this is
like pouring water into the little
top the peak of volume of tranc¬
all-time
240
^
ENID, Okla —The Estill Mortgage & Investment Company is
conducting ■ a securities business
For instance, in the 1929
overages.
years.
Today
Jones
cured six months
phenom-
same
in
market has in the past always oc-
few blue chips gothe end
with
ihe
a
transactions
of
Ume
of
Chips had hit new
highs at the so-called top in Sep-
than
Guaranteed
a
thZ m^ni tlJ3t V°lume °f transactions stantly adjusting itself by means
wl11 decllne as money is running of the connecting pipe, which is
S^e!l out> As a result' the peak of vo1" Trade. So you see the proportion
started
a
^
and
*
Only
Blue
priced
new
of
out
run
being unable to transact
Dow-Jones
iS
fK
past
to
for;
can
lgl^ove^™? 'nf
tember
top
start
How can you tel1 tbis? Wel1 as
^
PeoPle have less and less buying
.Ug ability U wl11 show up ln their
time the
alpoai"
in-the
min-
sneculators
1 ors
speculators
iaob
instance,
ctnpirc:
is wnen
when
top
a
Dubiic
public
thp
and
veslors and tne PUD11C speculators
tbat
they
•
For
vps?tors
highs.
new
or
Estill Mtg,
w
The great mass of wageworkers
a
are S0 joad^d up w*tb stocks that tank from the big tank.
tank from the
ing
the
the kind of system which benefits
"
'
./wV'-'*
,
.
tor the
reasons
form
iorm
wage."
tinues to think the market is mak-
enon
by
stand what makes our private enterprise system work. It is hardheaded business sense and new
market to
Tnn^,
their
than
both tanks stand at the same
x
L
Dow-Jones Tn^„oi.ini averages
Industrial
continue to rise and
everyone con-
ing
rather
wage,
level, and because water always
seeks its own level, the water in
both-.tanks will reach the same
fcVer,
Because, how-
:fices
highs'land -start0 sagging Do^"JorJes blae chips'
One of the best
Tim,,
TVv.,r
nual
operation of business efficiently
and profitably, is to misunder-
less water.
and d^°PPeduve^ badly ^ay be- level, mo. matter ' how much is inventions that have given us
^be ^crashwReeently the flow - pouretf into either tank. This ap- more refrigerators, more automo- pendence.
-~7
n£?f ?JlceS stocks hit their highs TaSt plies to the so-called "guaranteed biles, and more homes. This is PaU.
®vftenriJb ~a~ .pen?°.of Slx. m nine
their
smaller
repre-
fe'rm c"1*
ab™adneriod of
over
wa-
—
anv one
i'r
v
marginal
a
npar
like two tanks of
are
^
«
innd ohanrT
JStinf nil?
fta^n?nnt
fhi ^n
of Selock market is
not
earners
+
Wl11 always sour first if there is
any let"up at aU in enthusiasum->
f
For instance the "cats and doSs"
5 hlt their hiShs in February 1929
hi
von
+
sP.^ulftive Part °f
von
dntnj 21,! ! ^
nrp
i
„
companies
again..
<
„
^urinS every market /top
in again
anH
•
Co., Inc.
WHitehall 4-4360
;
.
16
The Commercial and Financial Chronicle..
(176)
Blockson
Another behind-the-market
Chemical, to
give it a wide range of inter¬ group that has been getting
ests starting with a railroad good attention, at least from
and running through guided the market analysts, are the
missiles, coal mining equip¬ sugar stocks which have had
ment, ammunition and-petro¬ unsatisfactory market exchemicals.
periences of a long-standing
and
THE MARKET... AND YOU
By WALLACE
The going was rough
stock market this week
STREETE
in the the fact that U. S. Steel has
the split its shares this year withprevious record high for the out Bethlehem following suit
as
industrials put up somewhat
stiffer
resistance
than
far, served to heighten the
so
had
expectations,
been the rule.
*
*
*
*
*
"Deal" Rumors
*
a
Stimulant
and
switch
which
into Pfizer which is expected
recommended
which
a
stock
a
denied, to Lion Oil
was
still lacks
any
new
was
That
A
Split Interest
good bit of the market
action
devoted to antici¬
was
pated
splits, with reactions
following in cases where the
hopes were too high. Probably
leading illustration of this
Sears Roebuck which had
been
❖
official
The
*
As
market
group
a
slightest pickup in in-
Its doubled price since control
the line changed hands,
Rail
of
Situations
Rails
have
Central, despite
New York
Above-Average
*
*
*
vestor interest.
*
putting
spirited
on some
action
has its enthusiastic fol-
another
been
freely pred
I SEE
out of the direc¬
came
meeting
in
I The views expressed in this
popularity wave to post its higher payout with a concurbest reading since 1948 and rent price appreciation. The article do not necessarily at any
v
time coincide with those of the
ical shares weren't any more
forged well into the 20 stock has partially reflected ChronicIe> Theil are presented as
encouraging! The big play in bracket. The issue has been in an above-average situation by those of the author only. 1
duPont arising out of its large
the
doldrums for a rather
holding of General Motors longer period than other of Continued from page 8
was
pretty much over, and the traditional
laggards and
the stock was given to sinking
has a good distance to go to
spells of some size. Even Olin equal
its
1946
high
of
of the construction of the Mackinac Toll Bridge which should be
on
stock
future action and the
was
after
the
able
stabilize
to
initial
disappoint¬
ment.
*
*
Bethlehem
Steel,
also
re¬
garded as a likely split candi¬
date, was one of the more
buoyant of the steel shares.
Directors
of the company
meet in two weeks.
This, plus
buy
offering
any
of
these
the
chemicals
last
C
o c
a-C
teemed
*
o
❖
tors
for
+
once
an
es¬
also
the
circumstances to be construed
no
sale
or
a
solicitation
of such securities. 1 he offering is made
only by
of
an
offer
as
to
the Prospectus.
cial reports
new
interest
might be in line to renegotiate
its perpetual contracts with
of
rising cost
As
far
as
concerned,
a
fixed
the
of
National
At
Fort
Pullmans from both East and West will be
special train arriving at Grand Rapids Sunday
the
Wayne
consolidated into
morning where
a
stop
a
for church
will be made
by ferry to the Island.
The special train
15, at 3:30
Wayne the
trains
will leave Mackinaw City
cars
arriving
at
Chicago
Pittburgh
and
The cost
meals
on
between
of
train
each tour includes round
as
in
some
some
in
compliance
with
the
securities
laws
of
respective
#
*
train, docks and Grand Hotel.
>
July 8, 1955
•
1
•
'
room
on
American
For reservations and additional information communicate with:
F. McLaughlin,
McLaughlin, Cryan & Co., New York; or Edward H.
Welch, Sincere and Co., Chicago.
DETAILED
TOUR
SCHEDULE
(All time mentioned is Standard and not Daylight Savings Time)
From
group
few
SCHEDULE
the
East
action is
1:15 p.m.
Leave New York
will
2.57 p.m.
Leave North Philadelphia—Dinner on
others
train
10:30 p.m.
__
Leave Pittsburgh
Penna. R.R.
the
West
Leave Chicago
Penna. R.R.
Sunday, September 11th—
4:00
a.m.
Leave
8:45
a.m.
Arrive
9:45
a.m.
Leave
Fort
Wayne
Grand Rapids
train
Penna R.R.
—
Breakfast
on
Luncheon
on
Penna. R.R.
_
Grand
Rapids
—
train
Penna. R.R.
5:00 p.m.
Arrive Machinac Island
—one
ing
prime textile field
of the
more
remote be¬
plan to take over West¬
Union's cable business—
a
States.
was
able
to
maintain
train
9:40 p.m.
heavy generally.
Penna. R.R.
Penna. R.R.
T
Leave Grand Rapids
a.m.
Arrive
7:55a.m.
6:20
.
was
:
Steamer
on
Friday, September 16th—
good ' sta¬
bility when the market
Steamer
Thursday, September 15th—
2:00 p.m.
Leave Mackinac Island
3:30 p.m.
Leave Mackinaw City — Dinner
a
dynamo pricewise, it
Penna. R.R.
RETURNING SCHEDULE
was
no
Penna. R.R.
Penna. R.R.
__
From
were signs
quiet accumulation
of the more practiced
good extent and while it
Alstyne, Noel & Co.
Hotel
Charles L. Wallingford, H. M. Byllesby & Co., Philadelphia; John
'
kept the issue interesting to
Van
and
trip rail and Pullmans,
Arrive Mackinaw City
ern
the
morning
plan (two in room) are also included. Single occupancy of hotel
rooms will be $4 additional.
Gratuities are not included.
3.45 p.m.
may
those States in which the
ties
Friday
specified, transfer of individuals and baggage
apparent aim to diversify well
be obtained from the undersigned only
undersigned may legally offer these securi¬
and at Fort
for the East and West will be attached to regular
outside the
Copies of the Prospectus
Thursday, Sept.
p.m.
Philadelphia and New York in the afternoon.
investors this week. Textron's
accompanying Warrant
on
arriving at Grand Rapids at 9:40
p.m.
10:30 p.m.
by
with
services. Upon
the group will transfer
arrival at Mackinaw City in the afternoon
re¬
tually since the end of World
of
share
Dealers
-
War II. Yet there
Price $2.50 per
22nd Annual Conven¬
Association will leave in
special Pullman cars from the East on Saturday, Sept. 10, and
those from the West and South will leave Chicago that evening.
Security
flicted the textile shares vir¬
Warrants to Purchase 275,000 Shares of
Capital Stock
.
has been arranged for the convenience of the
The members and guests enroute to the
tion
seriously challenge the pri¬
vate depression that has af¬
and
officers and direc¬
Wednesday evening
new
on
Saturday, September 10th—
Corporation
Capital Stock
vs.
<
-
The
Banquet
GOING
turn.
$
Vanadium Queen Uranium
the
members.
unoffi¬
that the company
the bottlers to end the squeeze
550,000 Shares
at
introduced
A special train
been
of
be
will
which will conclude the Convention.
1 a,
investment, has
poorly regarded for a
rather long period until inter¬
Olin has been far more ener¬
est picked up in it recently.
getic in the merger field than The stock
finally worked back
the other chemical companies,
to the 145 level against highs
starting with the big merger of around 125 last
year and
of Olin Industries and Mathie¬
1953 but in comparison with
son Chemical
Corp. not quite a
peak of 165 as recently as
a
year ago, which followed 1950 and 200 in 1946. The
$5
the acquisition of E. R. Squibb
dividend has been rather con¬
to put the firm in the phar¬
stant
but
earnings reports
maceutical business. Its re¬
haven't
encouraged much
cent acquisitions
have been
speculation over any possible
aimed at a paper company
increase in the rate. A good
and is under
securities
iM
of interest to many of our members.
❖
in the stock followed
an
n
NSTA Notes
measure
7 his advertisement is
not,
.
.
the placed
careful not to slam the
were
door
early
owe+rus
ap¬ group poised on a one-way, up
track in majority opinion But
The actions of other chem¬
currently, reweek's good
week, the issue tumbled rath¬ strength with somewhat pro¬
er
hard. Directors, however, nounced weakness at times.
tors'
weather,
warm
price surges in anticipation of Mathieson, which is consid¬ above 40.
a
stock split. When no such ered the more
intriguing of
i
the
on
in 1954.
post a 15% boost in this
year's earnings. But Westinghouse responded
by rebounding vigorously from its recent
the
general
are
ctrecognition. It was enough to
parently, is expected to be a
give at least momentary
good boon to the soft drink the demand hasn't yet come dend wl^ be doub e. wi
spurts to the stock of the
shares which showed on
Apparen y
good along so that the carriers a year or
other companies, although
demand
low. Pfizer's
including elevation offer some of the better divi- they af sufficiently numerprice action Monsanto was inclined to be
of Pepsi Cola to the top rung dend yields of the moment ous *° keep the stock forging
desultory.
among the laggards more than
in
turnover
at
times.
The plus, in cases like Southern *° new highs, as it con mue
*
*
*
"
not this week.
stock was able on this new Pacific, a fair chance of even
do this week.
❖
*
*
to
was
strength during
moderate
periods of
buoyancy,
*
*
*
the rails have
shown somewhat better action at times this week after
nature. West Indies
Sugar is their listless recent performEarnings Guessing
usually prominent when the ance. The rail average has
Guessing on earnings discussion centers on issues shown no interest in explorbrought
some
spirited
re¬ that are
selling below their ing the new high level
sponses in some issues includ¬ asset value. The stock has had touched
momentarily three
ing Chrysler and Allegheny the minor range of around weeks ago, but the feeling is
Ludlum Steel. Chrysler, par¬
five points for the first half that any real penetration on
ticularly, is certain to show a of this year with a good body subsequent strength will go
highly favorable comparison of opinion holding that it is a a long way to encourage inwith the dour earnings of last
thoroughly liquidated situa- vestors looking for behindyear when the company was tion with no
way to go but up the-market situations,
Many of the issues were
split has al¬
downright discouraging. One ready taken place, as in Mon¬
research
department, study¬ santo Chemical, a variety of
ing the recent unfavorable ac¬ possible "deals" served as the
in trouble. Some estimates for
tion of
Westinghouse, came chief topics of discussion. The
the first half earnings run as
up with a depressing estimate company has been linked with
of
1955
earnings of $3.60 a variety of others ranging high as $8, or roughly four
times the full year's results
against more than $5 last year from American Viscose,
Where
Thursday, July 14, 1955
.
Arrive
Chicago
:
Penna. R.R.
3:25 p.m.
Pittsburgh—Breakfast served.
arriving Pittsburgh
Penna. R.R.
Arrive North Philadelphia-.Penna. R.R.
5:05 p.m.
Arrive New York—Luncheon
.
on
train
Penna. R.R.
-
Volume 182
Number 5446 ...The Commercial and Financial Chronicle
Look
■
No
closely at this little black box
■«1TT 55 4L^3^X;DJEIO!
what you do,
good that; this little black box
far-reaching effect on your way of
the very near future.
matter who you are or
the chances
will have
a
life within
are
For this is "transac"*—the
est,
smallest, light¬
and fastest"electronic brain" yet announced—
and
its
development by Philco scientists
finally unlocks the door to mass production
and widespread use of electronic computer
and control systems in industry, science,
business, and the Armed Forces.
And
a
well-locked door it
Because the demand for the
of
vacuum
Barrier" Transistor.
Yet it performs all computer functionsmultiplies, divides, compares, and "carries"
for 19 binary digits and algebraic sign, and
also performs 416,000
complete additions or
subtractions per second!
By utilizing the unique high frequency
properties of the Philco "Surface Barrier"
Transistor, they evolved an entirely new con¬
cept in computer design—the Philco Direct
Coupled Transistor Circuits.
applications for this system
military uses—with the
emphasis on lightweight portability, low
power consumption, and high accuracy—are
only to be hinted at.
benefits of
tubes
military applications.
To this dead-end situation Philco
brought
their
engineers
fresh outlook and combined it with
experience from pioneering the "Surface
a
This "direct
computation mushrooming out of
World War II has, until now, put a breaking
strain on computer design. As they have
griwn more complex they have grown more
cumbersome and harder to produce.
thousands
in many
urgent
coupling" of transistors is the key
that unlocks the door.
was—
automatic
Their
(177)
have
generated not only heat and the need for
bulky air-conditioning, but also problems of
power consumption and maintenance. And
their size and weight have barred their use
By one basic stroke, it cuts sharply the
number of elements in a circuit, pares down
the bulk and
weight, slashes cost and produc¬
tion time
.
:
;
"transac",
and
speeds
up
The civilian
are
limitless. And the
Thus
"transac"
becomes
one
more
example of the teamwork of Research, Engi¬
neering, and Application that has made
"Philco" synonymous with "leadership" in
Electronics.
computation!
for
example, is one-third
smaller and lighter, and 10 times faster than
any transistorized computet announced to
date. It operates on one small battery, with
less than l/1000th of the power needed by a
comparable vacuum tube ComputerLand gen¬
erates
less heat than
a
Christmas
tree
bulb.
♦"transac"—Trademark of Philco Corporation for Transistor Automatic Computer
ANOTHER FIRST FROM THE
MH I I I
( 1 LABORATORIES
17
Thursday, July 14, 1955
The Commercial and Financial Chronicle...
18
(178)
"<
The Credit
Squeeze in Britain
commenting
the
Dr. Einzig points out the adverse effects of
strikes have been deferred, and condi.ions ahead
the
of
part
Fortu¬
bank man¬
more or less
banker.
nately for the harassed
the recent
agers,
in
for
servative
victory
at
Election is gradually
is
at any
ters
and
realistic
about Britain's
tion and pros¬
is
It
pects.
the
that
of the
decline
!
of
month
une
small.
very
ur.
r aui
tjie
strike is expected to produce de¬
effects that is
ferred
felt
months.
over
is
expected to suffer, because, owing
to the
delay, import licenses in
various
countries
have
expired
and
have
orders
particular
It
Although this aspect of the bal¬
ance of payments problem
is re¬
ceiving
publicity,
much
it
is
official
circles
that the country
'its
present
it
in¬
The
the
of
cost
production
of
exporting industries to such
an
extent that
their
prices are
now barely competitive.
The in¬
many
creased
payments have
wages
re¬
the
preferable if
this
restrictions
them
end
withoutVjrigid
being
of
imposed^ on
Government
by
"request"
the
by
means
fcould
themselves
£ banks
achieve
which amounts to a command.
extent
some
desired
the
is
end
production.
Indeed,
of the
most
strikes in recent months occurred
nationalized
in
industries.
securities.
Government
dated
corresponding involume
credit.
order
to
..Throughout the post-war period,
rpart from a - brief > interruption
ratio.
rise in
entailed
in
crease
production
prices and wages
a
the
of
of
♦
during the credit
it
has
lor
been
banks
of 1952,
squeeze
understood
an
thing
to
satisfy the increased
credit requirements of their cus¬
provided that the money
tomers,
needed
was
purposes.
ing
cf
wages
could
taise
its
depend
credit
Acting
sound
business
If as a result of grant¬
claims the wages bill
industrial
an
it
for
firm
its
on
limit
under
increased,
bank
to
accordingly.
influence
the
of
enough
and by
nationalized industries.
of
rising cost of pro¬
industries.
exporting
feel that the volume of credit
reduction
further
through
the
selling
tent
credit
of
for cutting
the
the
sky is
limit to their bank
commodation,
liable
they
to
assumed
volving
and
encounter
a
that
no
longer
credit
they
ac¬
are
difficulties
commitments
substantial
if
in¬
increase of
their credit requirements.
Acting
on
unofficial hints by of¬
ficial quarters, the banks have in¬
structed their branch managers to
resist
further
demands
for
creased credit facilities and to
in¬
en¬
deavor to curtail the existing lim¬
instruct
to
To
safeguard
some
may
feel
The
the
a
sufficient
ex¬
their liquidity.
main
stock.
capital
used to
which the
Illinois Bell sold
sale
this
from
Proceeds
applied toward repay¬
the parent
been
ment of advances from
company.
upon
tificate of Death
held
redeem¬
of the company
104%% if redeemed on or be¬
able at the option
July 14,1960 and thereafter at
prices decreasing to 100% on and
after July 15, 1990.
extent,
however,
the
Bell
Illinois
has
more
than
3,-
about
telephones
in
service,
55% being located in Chi¬
cago.
Other
000,000
ties
principal
include
served
communi¬
Aurora,
Ber-
Cicero, Decatur, Evanston,
Joliet. Oak Park, Peoria,: Rockford, Rock Island and Springfield,
wyn,
Illinois
and
and
East
Chicago,
Gary
Hammond, Indiana.
Total
1954
for herself.
Custody Account
have
wish to
affairs
thing
their fi:
all
in
centered
Next
their hand in the performance
en
of
Service
Investment
an
which
of
addition
in
any
Will
cuss
burdened
things with which she
of
finally
we
her
of
securities
with
the
no
the
affairs.
the
ceive
all
Trust
and
She
an
unpopular task if the Gov¬
the public
ing
that the banks are act¬
under pressure
transactions
is
not
enviable.
In
that
before
general,
in
two
types
the
tary
living trust and the
$40,830,491.
ond
or
is
unlike
Form Percy
Friedlander Co.
Percy Friedlander and Robert J.
Friedlander
a
Aug.
1
will form
a
the
Friedlander
at
City.
One
Wall
&
Co.
Street,
with
New
The new firm will be
member of the New York Stock
partner in Gimbel & Co.
under
and
of
a
of
volun¬
sec¬
trust
Will.
or
It
is
living trust in that it
lifetime
creator
was
testamentarv
the
does not become
the
offices
York
on
the
created
trust
the gold stand¬ Exchange, with Robert J. Fried¬
ard their customers were used to
lander acquiring the membership.
such refusals and accepted them
Percy Friedlander was formerly
as a matter of course. For the last
however, the busi¬
mentioned
The first
the old days under
20 years or so,
Miss W. was happy.
were,
.
manner
of
the
ooerative during
the
trust.
grantor
Aside
the time it becomes effective,
provisions of
substantially the
same
both
same
may
and
be
the
rules of law govern both the
testamentary and the living trust.
If we go back to the case of
Mr.
Y
and
the
with
case
Y, we find
a
his
of
$125,000
his
which
company
manner
same
paid
interest
as
is-
bond.
on a
A second option is the lim¬
(2)
ited instalment option
the
that
vides
out in
which pro¬
proceeds be
paidl
equal instalments until the-
proceeds
exhausted.
are
Then there is another avail¬
(3)
able option—perhaps
estate,
widow, Mrs.
situation where :the
in
used
estate
thereafter continuing:
the lifetime of the
beneficiary. Under this option a
and
years
throughout
man
may
name
his wife his pri¬
beneficiary and be assured,
that she will receive income from
mary
this insurance throughout
or
from
in which it is created
the
the
the one most
planning. This is;
known as the Life Income Option
with instalment payments guar¬
there
anteed for a definite number of
transferred to the Trust and
Trusts.
from official Percy
The position of bank
managers, having to refuse credit
for
perfectly sound and secure
attorney
the. Trust Agreement,
executed
it, her securities
were
as
the
prepared
she
option
interest
The
(1)
means
re¬
looking for. After the details were
W.'s
you
ever,
the
from
also whatever amounts
Miss
naming
her
principal she might require.
This was just what Miss W. was
out,
policy
will pay thebeneficiary interest each year in.
of
worked
you
her
—
would
income
ini
know, if your
$1,000 ordinary life-
As
a
various
provided
options
policies.
is not:
under most life insurance:
policies, the proceeds may also bemade payable to the beneficiary
under various options such as:
y
be
trustee would take care of all
financial
the
are
withi
and
person
beneficiary, the company will pay
out the proceeds—$1,000—to youi
in a lump sum at his death. How¬
Trust
decisions
more
obvious
These
insurance
Agreement. Miss W. would have to
make
average
husband has
during her lifetime and disposed
accordance
the
the
placed in trust for her own benefit
in
not
settlement
about
could
life insurance policies
are
familiar.
living trust, showing Miss W. that
all
benefits avail¬
which
be
discussed
the average person..
certain
are
which
familiar.
Then
in¬
able under
not too
was
the-
in planning;
interested
but,
to
decisions
with
-
want
not
dis¬
of
few
policies in which we are-
estate
There
to
life
like
a
under
available
the
invest¬
ment changes would rest with her.
Again, Miss W. wanted something
did
briefly
very
primarily
final decision in regard to
more—she
would
I
now
surance
pointed out to Miss W., the
we
Insurance
Life
And
provides
recommendations
investment
as
Account,
proceeding in the-
or any
Surrogate's Court.
the services
to
Account,
Custody
a
call
to.
title
secure
property without the need of
anr
we
income before interest deductions
ernment were to make it plain to
immediately
will
benefits
discussed what
we
the-
on
the
place
one
than that.
more
and
wife
death of either of them the other
handling of dividends and coupons
cial
often by at
most
—
and
her
go,
provides help for those
physical
and
State Tax
a
to
who need asistance in the
I
operating revenues for
$347,796,654 and total
were
jointly
and
estate also is oftem
Real
Waiver.
of to her relatives after her death
The series D bonds are
released to the survivor
filing with the bank a Cer¬
only be
husband
concern now was
and how it
su
car*
her
ultimately
a
states
most
in
wanted
she
We discussed
the death of
upon
and
co-tenant
she
was
afraid she
might become incapacitated, and,
although she had some near rela¬
property
blocked
are
securities;
whom
ac¬
funds in
She said she no longer
look after her
to
are
through the decedent's estate. The
these accounts, however*
trust
in the estate
competent to
tives
you
bank
joint
Such accounts do not pass:
counts.
the story of how
in two or
sure
am
with
familiar
all
I
names.
more
held
property
is
erty
is final
it
created
tell you
me
ago.
felt
banks feel that it would strength¬
quarters.
The long-overdue credit squeeze
lias
made
its
first
appearance.
1955
June
have
down their total
tent
done
Govern¬
restrictions.
themselves
banks
be
realize that
of
cash
banks formally about the ex¬
credit facilities to
only be
by making industrial firms
bank
for the-Treasury to
sary
need
could
of
any
It may not be neces¬
tion for the domestic market must
This
without
curtailed
be
must
To that end, expansion of produc¬
checked.
time
company
share.
fore
joint tenancy.
As you un¬
doubtedly know, jointly held prop¬
proved to be the
planning for
an elderly maiden
lady, Miss W.,
who came to us for help some
663,438 shares of its capital stock
to shareholders at par, $100 per
banks
and
Government
Both
the
duction
In
at
in
be
cannot
held!
property
and
estate
man's
>
/
now
at the conclusion that
be called to the
this
and
impending issues by the Treasury
ment Loans.
halt must
market
would further increase the cost of.
the balance of payments problem,
the Government has now arrived
a
Loans
Government
for
the
in
decline
further
it
by Will; for example*
insurance not payable
to a
life
binding.
answer
1954.
,
if
once
living
a
spent $344,400,000 in the five-year period 1950-
Illinois
quotations of Government Loans,
however, this would entail heavy
capital losses. It would also cause
a
and
Let
toward re¬
finance construction on
liquid
their
maintain
company
Such advances have been
Owing to the decline in the
.has
i
expansion
the
and
irrevocable
be
distributable-
are
than
other
provides that it
certain types of
are
which
assets
but Miss W; said she needed some¬
company's
inois
stage has been reached, however,
at
which
the
banks ,have not
short-dated stock which
they could sell. They would have
to sell their long-dated stocks in
The
trust
be available to
There
Trust.
changed or ended during
his lifetime. Or a living trust may
payment of advances from Amer¬
ican Telephone & Telegraph Co.,
which owns over 99% of the Ill¬
A
a
A
the
additional
ulti¬
and
covered
man's
property is distributed by Will or
be
can
Tax due at
Estate
death
Y's
,
Up to this point I have
is created
creates
sale
public
munications
reduc¬
sulted in heavy consumer demand tion in the liquid resources of the
lor goods that could and should be
banks by means of policies pur¬
exported.
Most industrial firms sued by the Bank of England. Un¬
ere too prosperous to refuse wages
til recently the banks were able
demands and
risk an
interrup¬ to
supplement their liquid re¬
tion
of
their
highly
profitable sources by realizing their shortbeing achieved through a
as
Federal
no
testamentary
a
wife's benefit of the
mainly the way in which a
and
agreement
an
create
to
mate beneficiaries.
voluntary
living trust because
during the grantor's
living trust may be
revocable if the person who
Money from the sale of the
bonds will be applied by the com¬
To
be
two types of
trust
are
a
under
lifetime.
terest rate.
official
an
is
One
is known
it
& Co. offered
yesterday (July
13)
a
new
issue of $30,000,000
Illinois Bell Telephone Co. first
mortgage 3%% bonds, series D
due
July 15, 1995.. The bonds,
awarded to the group at competi¬
tive sale July 12, were priced at
101%% and accrued interest to
yield approximately 3.17% to ma¬
turity. The group's winning bid
was
101.16, naming the above in¬
for
by credit reductions on the initia¬
tive of the lenders.
It would be
considered infinitely
general there
created
by Morgan Stanley
supplemented
bank rate has to be
wages
In
trusts.
underwriting group headed
An
high
It has become evident that
jt claims that are chasing eachx>ther
"in a
rising vicious spiral mave
raised
funds would
Telephone Bonds
automatically.
effect
is living beyond
means.
prohibitive
produce its
could
it
before
level
realized
is
rived.
proceeds
changed during the grantor's life¬
bank rate to, say,
have to be raised to a
comparably less important than
the problem of inflated domestic
consumption in Britain.
In
Mrs.
Morgan SEanley Group
Offers Illinois Bell
6%, would be almost equally in¬
effective.
The bank rate would
cancelled.
been
balance of his estate there would!
probable that a further
seems
increase of the
If Mr. Y were to
due.
faithfully according
to directions given by the person
fiom whom the property was de¬
its
and
borrowing of their own free will.
be
$9,340
trust for his
time
utterly failed to induce most
British borrowers to curtail their
of
were
result.
has
The exports of
in
vehicles
motor
likely to be
would
of
However,
subsequent death there
a
Federal Estate Tax
at Mrs. Y's
large estate and in
a
Federal Estate
no
his death.
duty of employing it or applying
will achieve the desired
squeeze
transmission
the
for
outright, we found
be
at
holding of property subject to the
heavy.
duly
taxes due
give his wife only the maximum
marital deduction of $60,000, and
a drastic cur¬
expenditure un¬
influence of the credit
the
there would
important and useful
very
administration
and
special situations. First, let me de¬
fine a trust. Very simply, it is a
tailment of such
der
our
property in
Possibly
ployees.
a
device
gree.
In any case it can
be passed on to the consumer. Toe
increase of the bank rate to 4%%
prQ_
dock
longed
of the credit
will be such as to cause
unemployment,
remains
to
be
seen.
This need not necessarily be
the case to any consideraoie de¬
it is
deflation
expansion.
During a period of
rising prices and prosperous trade
the turnover of goods is quick,
so
that the burden of the addi¬
tional interest charge is not un¬
gold reserve
during the
strike
Whether the extent
squeeze
like that of
estate
Mr. Y gave his wife all
of his property
trust is
estate
Average Man but
an
taxes.
the payment
reduce
debts
expenses,
A
of trusts.
subject
his
trust will
testamentary
a
his case, if, after
of
Next I would Lke to c'elve into
the
of
use
materially
In
The first step towards the
of the consumers' in¬
Britain's experience of 1925 has creased purchasing power will be
conclusively proved that in itself to cut down overtime payments
an increase of the bank rate need
and various bonuses and other ex¬
not necessarily bring about a re¬
pensive facilities with the aid of
duction in the volume of credit, or which industrial firms have been
indeed arrest the process of credit
trying to attract each others' em¬
tive.
views
economic posi¬
true
It
that before very long, more
rigid rules will have to oe en¬
forced in order to make the Gov¬
ernment s monetary policy eirec-
to more
—
sober
have to
ever,
quar¬
will
they
months
perform an unpopular but
necessary task.
hard and
judged according to its
seems
probable, how¬
be
to
merit.
rate in
official
no
rule, and each individual case
last
the General
giving way—
yet
as
few
next
the
There is
its.
wave
Even so, bankers are
difficult period.
During
a
his
Trusts
account relatively unimportant in
their
elsewhere.
in
Planning
in
lasting personal interest
family and his esta.e.
that they can
so
take
would
they
credit squeeze.
a
of
optimism that followed the Con¬
Eng.—The
boat,
Estate
safely ignore the threats of their
customers tnat, in case ot refusal,
beyond its means; says rise in prices and wages has caused
corresponding increase in volume of credit that is resulting
LONDON,
all banks are
in the same
favorable. Sees a problem of inflated
consumption in Britain, and says country is living
generally
not
domestic
7
part
new
and prospects,
are
Continued from page
accustomed
been
liberal attitude on
of the banks.
Indeed
generation of business¬
men
is
not
accustomed to the
sound of the monosyllable "no" on
the
views about Britain's economic posilion
on
more
the
By PAUL EINZIG
In
much
to
has
world
ness
-
no
how
matter
many
her life
years
she
live. Should she survive only
five years and the settlement op¬
may
tion
payments for tent
either the payments
guarantee
years,
due
then
over
the
next
their computed
to
a
five years
or
value will be paid
contingent
beneficiary
or
beneficiaries.
; Each
insurance
various settlement
company has
options avail-
Number 5446
Volume 182
able
the
companies will write special set¬
tlement agreemens to provide for
in
but
addition,
insured
whatever distribution the
wishes
so
far
to
not
long
out
valuable
and
I
have
lieve
led
not
the
that
is
a
few
a
siderations
to
be¬
of
Austin
Merrill
sure
you
many
is
give
ing,
Hinsen
with
WORTH,
Tex.
<—
Baltimore
business
curities
with
under
2901
Cleburne
Road
name
know
Co.,
use
at
the
of Zone Investment Co.
a he
u,
ainancial
chronicle)
way,
se¬
Mich.
DETROIT,
—
Lloyd
W.
New York City, members of
the New York Stock Exchange, on
Berger has become associated with
Ashton
&
15315
Co.,
Mc-
West
Nichols Road.
July 14 will admit William Brockman
to limited
partnership.
—
•
Look what the wheel has done for ns!
to
this
Plan-
;
-
wisdom"
of
Roosevelt
some
•
shares
225,000
$11
at
'Co.
Now it tells
business in 1921—main¬
tains its general offices and plants
in Centralia, 111. It is engaged in '
•the
manufacture
and
sales
of
firm
There
ments and systems,
,
a
missiles,
-
•closed
circuit
ment.-Hallamore
is
now
Beach,
tion's
net
sales for the
used
to
April
Steel
10-month
the
Including
.
shares
of
$1
par
steel,|
a
the
tremendous
the
example,
For
tensile
it
may
as
it
and
more
pressures
■ n-a-x
of
high-
,
though
wheel (above, right),
look
from
different
no
is lighter.
weight
n-a-x
truck
ing,
goes
This
that
means
into the payload.
high-tensile
steel also has
exceptional resistance to road impact,
fatigue, abrasion and corrosion.
of
excellent welding
July 18.
Mr. Levy was a partner
in Stanley & Co.
other
as
earth-moving
equipment,
still better and better
steel—America's
and in the
quantity wanted, when it is
wanted, at the lowest possible cost to
our
customers.
applications. In fact, its applications
are
limited
only by man's imagination.
HIGH-TENSILE
just
one
of
is, of
COUTSe,
men
work
tomers in many
It is
closely with
properties, too.
cus¬
fields to make better
COMPLETE
STEEL-MAKING STRUCTURE
Great
Lakes Steel Corporation
Steel Company •
ILinna
Products
Company
•
•
The Manna Furnace
National Mines Corporation
goal to produce
•
DRIVE
SAFELY
•
n-a-x
NATIONAL STEEL
GRANT BUILDING
CORPORATION
PITTSBURGH, PA.
(Srecl^J to The Financial Ciip.omcLE)
Ga.— Willard, N.»
<
Lamb
•
now
withMerrill
Lynch,
•
•
i
.
•
Pierce,'Fenner & Beane, 23Pryor> •
Street, N. E.
•
Weirton
National Steel's role
The characteristics that make
Moore, Jr., and Richard M.
•
Stran-Steel Corporation •
National Steel
Iron Ore Company •
Corporation
products.
constant
our
It has
SEVEN GREAT DIVISIONS
WELDED INTO ONE
by
steels made
many
National Steel. Our research and pro¬
duction
With Merrill Lynch Co.
ATLANTA,
quality
great bargain metal—of the
shipping containers, and many other
any
is actually sturdier
many
automobile and
bumpers, railroad cars and floor-
steel for better
with offices at 44 Wall
City,
with¬
better steel for wheels
better for
products, .such
N-A-X
Stock
York
low-alloy,
a
IS
it
make
also
deep-drawing dies used in wheel making.
225,000
capitaliza¬
be 485,000
value common
Levy,
New
highj
product of National
HIGH-TENSILE
stand
Exchange member firm of Feigon
Street,
-
available just
is'n-a-x
ago
tility and cold formability to
member of the
Exchange, and
Gershon J. Feigon will form the
snd Levy
...
make possible
high-strength steel with good duc¬
Feigon & Levy
York
..
improved. Better steels are
other truck wheel,
Thomas
be made to: fit ;
shape,
Corporation.
N-A-X
stock.
Form
-
high-tensile a
provide working
offered,
or
•
not' warp,
Advantages of N-A-X HIGH-TENSILE
stock
outstanding will
shares
will
It
after year, the quality of
years
tensile
•capital and for general corporate
purposes.:
few
a
period ended April 30, 1955 were
•■$6,887,758.
Proceeds from the sale of stock
be
man
and durable. It holds
One of the steels that
Siegler Corpora¬
The
why
'
better wheels than were
30, 1955, was over $2,000,000; net
■sales for the year ended Dec. 1954,
.'$2,425,000.
.
...
industry.
California.
Hallamore's backlog as of
t
constantly being offered to American
equip¬
being
•operated by Siegler as a separate
•division under the name of Hallaamore
Electronics
Company
in
Long
;
year
steel has
industrial
and
televisions
reasons
many
specific size
And,
support equipment for
.guided
.
the wheel be.,
shrink, splinter. It can
and
test
think about itoa.
...
dimensions.
its
scintillometers
counters,
geiger
;group
are
It is strong
electronic
•devises, largely for U. S. governiment use,
Its principal products
include communication equip¬
gives him light. It
chose steel.
of
sale
and
and
t
It
.Importance of steel
California elec¬
engaged in the de-
manufacture,
r
him. It is industry.
warms
without steel?
a young
various► electrical
*
It brings him food.
it? And where would
5,000 retail units in 37 states,
.Alaska, and the District of Columbia.
In addition, Siegler has
recently acquired the Hallamore
•over
.
V
v )
„
where would we be without
minute,
:Siegler heaters, which are unique
in their field, are sold direct to
;
the hour. It carries
man
And when you
heating units for use both
fuel. The
with oil and natural gas
world
1
-
>
builds his house. It
cools and
..
his
and
man
him to work.
:family
•and
.,
of man's most
one
changed, abruptly.
y.
Mfg. Co.,
is
turned—and
&
Siegler Corp.—started as a
rsign,
„.
•
civilization moving; It
started
It
Dominick,
&
Dominick
tronics
.4
notable achievements.
a
& Co. and Schwabacher
:space
:*
~
But certainly the
of it first.
wheel
share, by an
'underwriting
group
headed by
William R. Staats & Co., and in¬
The
,
[obody knows who thought
of
Siegler Corporation common
:stock
were
offered publicly on
Bache
"
w
Siegler
'The
cluding
'
'
has done for the wheel
of
issue
.
j
•
~
Corp. Common Stock
.July- 13
v
And look what steel
said "consists of being
ago
An
•>
-
r
r ■!
912
F. L. Salomon & Co.. 120 Broad¬
con¬
"Estate
as
fiankers Offer
are
&
F. L. Salomon Partner
offices
from
Upham
Avenue.
Exchange.
With Ashton & Co.
Crawford
Bullington is conducting a
has
Harris,
can
wise in time."
New
Green,
a
thought
due
Theodore
which
;years
tion
S.
Beane, 7 Drayton Street at Bay.
and in a very
However, if
"nine-tenths
will
with
arrangements
that
.
now
Co., Inc., N. B. C. Build¬
members
of
the
Midwest
to
•estate
to
FT.
Fenner &
Lynch, Pierce,
carefully plan our own
before it is
late, perhaps we may be able
attain at least some part of
ning"
too
Lynch
affiliated
now
is
&
(Special
considerations and
we
Rickard
Erb
,
Mo.—Robert H.
become
associated
KANSAS CITY,
Edward
dForms Zone Inv. Co.
(Special to The Financial Chronicle)
manner.
all
will
■these
L.
the
—
in - spite of
I could only touch
briefly
•elemental
under
of
Ohio
Upham Co. j
(Special to The Financial Chronicle)
involved
that
fact
them
tool
Beane, 101 Twelfth Street.
SAVANNAH, Ga.—Lawrence M.
dis¬
to
you
the
of
CLEVELAND,
Sequoyah Securities Co.
from offices in the Fidelity Bldg.
namei
With Harris,
Green, Erb
(Special to The Financial Chronicle)
—
Stock
simple matter.
am
Okla.
is conducting
business
securities
a
Lynch, Pierce, Fenner
Joins Merrill
anything but that and from
.realize
•we
&
every
disposition
discussion I
the
Merrill
should
trying
in
person's estate is
•on
in
clouds of mystery that
any
ning I
my
Dawes has been added to the staff
of
CITY,
James R. Fitzgibbon
Ga.—Kenneth V.
COLUMBUS,
Joins
Sequoyah Sees
OKLAHOMA
flex¬
very
have surrounded estate plan¬
.may
It
a
importance
that
hope
perse
life
Thus
asset
are
Forms
Lynch Adds
(Special to The Financial Chronicle)
underestimated.
be
not
its
and
•estate
line.
of
becomes
insurance
ible
his wishes
as
Merrill
request,
on
ID
(179)
The Commercial and Financial Chronicle
its policies
into
written
and
...
• i
M
i
The Commercial and Financial Chronicle
20
In
Support of Fulbright Bill
Concerning Unlisted Companies
about
tion
I'm
happy
Stock
Exchange
Bill
shareholders.
to
on
amend
the.,-
Securities Exi;.?
change Act of
would
ing
;
removed.
be
Some
c o m
are
istered
tage of price,
the
United
which exchange
provide.
But there are
companies already listed on
regional exchanges which do
have
assets
of
$5,000,000.;
Van
companies, would
These
3
still
be
subject to the double standard.
?
of*<
any
profits made
six-month
period by
of
within
these
a
persons).
principle and its enactment would be
in the public interest
It would
der consideration is sound in
enlarge the ara of informed
share ownership, and, to a subnational securities exchange are stantial extent, would abolish the
not subject to all of those require- double standard which now exists.
ments. It has long been our view
In the case of many of the comsingle standard should ap-
a
Public
ties
of unlisted
owners
securi-
entitled to the same con-
are
siderations
safeguards
and
holders of securities
the
as
registered
on
fnf^tinn
atiditipn^^
^
*£'d?hsanata/^
ntnviHpH wfth ^orp fn
would be provided
Pan1^
,
by the
with■moiejn-
formative proxy solicitation mapresent
requirements
are terial; stockholders would be apshown to be too burdensome for prized of the securities transacpublicly held companies which tions ot oincers, directors ana
If
securities exchange.
national
the
then the burdens
lightened
on
listed
unlisted,
are
should
be
But,
companies.
in
any
case,
ld
would
hp' ahlp to obtain
hobders would be?able to od a n
the the same cremt on tne securiiies
double standard should not be allowed
to
continue.
nn
The
Fulbright Bill would
subhaving assets
million and at least
security holders to the proall
3ect
companies
Queen Uranium Slock
shares
550,000
of
chase
on
additional
an
JpTPt?^ we?e
f nit oL Tp Ht p^^
Change?' "
manv
vears
the
Exchange
abolish
would
ard
to
as
the
.
pur-
corp^ownTor Sa^n
i^nrnvim»tpiv
f
companies of
has
agwegate
u:_u
-
the
1941,
we
^^
York
New
Stock
,
l~.
area
The
years
many
Ex-
change, after much consideration,
concUide4 that
million in
terest
and
should
of
the
as
Vanadium
not
producing at a rate
q£ lg tQns per day
Jt is planned
listed
any
or
the
mula be used.
only
which
in assets.
unlisted
companies
Stock Exchange must
agree to so-
ceipt
rent
Qf proceeds from the cur_
financing> The engineer's re-
port states lhat the Vanadium
9^en property of 12 claims, as of
June 1, 1955, had proven ore re-.
seive®.0 araund U»975 tons with
licit proxies.
The Exchange has taken these
for listing—$7,000,000
Many of these 120 com-
steps believing firmly that shareholders, as owners of the corporation, are entitled to adequate in-
our
would
wish to
be
minimum
unable
or
may
would be in keeping with the tra-
—
*Statement
by Mr. Funsion before the
.n-taS'l'™?c»rer««":
Washington,
d. c.,
June
30,
loss.
ditional position
outstanding
win
•
nnn
of
i
consist
capitaliza-
of
1>005,000
capital stock and
.
275,purchase additional
<
.
ooo'rights
to
.
....
.
shares.
of the Exchange
on disclosure.
We believe that the enactment
another-$100 billion will
Pa*€
een sPfnt by I«57, with av-
ave
orap annual expenditures after
u??.- runmn£ at more than $40
of its cash earnings in
two"-thirds
botb doubled our stocks of durable
manufa^turinV co^poraUons " C-P,,ta eq"lpme.nt and replaced
keep'going and^"his plough-back virtual y aH equipment wh.ch was
,
P not 8
..
p
M.
does 8
necessarily result
,
.
.
ZlZZmZl X
in
a
iTabZe
l
ZreZedTe-
the
orn
for
omy
the
has
country
Jn use in 1941.
expfndVmuc'h Taste'r
than the number of workers
em-
pl°yed'
worker employed Some examples
°Jj?oss ^ and
Per
™orker a] .the SlnofT.19co4c.arj:
in
revolution
has
labor,s
has
been
the
share
Not only
tlonal ^aper,
As might be expected, the inAs might be expected, the in-
national
creased use of equipment relative
25
past
the
of
in
substantial
(1)
In
60%
1929
years
size
tot
f
s0^ fn™ waVoaM
thp
Drettv
crease
ff_
and
j
inwaees
steadilv
at
0 4%
more
than four
out
dollars of nersonal
of
1965
iu-
*
*
has been the shrinking share of
""""S-1"1"""1"16
tlta^ inro^ror?fnlfinT
Jornorafl^
COrPOratlOnS
3
Sn9 TO
Q TOO
16% in 1941 and 18% in
i?
^
$
nfri
sSS^to
bu^ss Mr
in
engage
ouslv with E
ous y Wl
Smith
R
•*
t
.
o=,o Wp„,
securitils
tas nrev!-
a
Bell Co
'
|
With Financial Investors
(Special to The Financial Chronicle)
SACRAMENTO, Calif.—Milo R.
Roberts has
joined the staff of
Investors, Incorporated,
Mr. Roberts was
1716 Broadway.
previously with Richard A. Harrison-
With Dqmpsey-Tegeler
4
Financial Chronicle)
(Special to The
;;
D
j.
^
^
7
legeler
street.
s
is
now
with Dempsey-
oin
n
of personal income
^
form
today,
Year
3953
paid
in
with Marache, Dofflemyre
with
that
every
-Per Dollar of Gross Plant
11.8
Earnings
Earnings
Before Taxes
After Taxes
27.5
result
I
Sales
Earnings
Earnings
the
required the addition of about $67
in equipment. Since, as we pointed
TABLE
Before Taxes
4«nnU«l
increase of $100 in total output has
Billions of Dollars
After Taxes
$2.70
$0,303
$0,130
22.9
10.8
$2.48
$0,229
SO.108
24.4
11.3
$2.45
$0,226
SO.105
21.0
1
11.3
$2.13
$0,179
S0.097
12.5
$2.25
$0,190
S0.099
24.0
*3955
based
on
first
quarter
data.
TABLE
Plus depreciation
II
Billions of Dollars*—
1951
and amortization.
1952
1853
1954
11.8
Profits after taxes_^
10.8
11.3
11.3
'5.5
5.5
6.2
6.3
Total
45.2
24.0
it/
16.3
17.5
18.1
69.2
Less PIant and equipment outlaysiU >40.0 f 11.6
11.9
11.0
45.4
-
& Co.
stant,
with
it would be naive
1954_.
'^Estimate
is
compared
IcJ -Tnon
4n
per doilar of equipment (in
1947
dollars) has-beeflsurprisingly con-
Only
u 7 17.3 •
"
west tseventn Available for dividends
Mr. Creger was formerly Dividend payments
j
'
nrnarl
crued to the benefh of capital,
Over a long period of time, output
-j
LGS/ANGEI^ES, Califs James Total cash earnings
'creger
increased amount and productiv¬
]ty °f cabltal equipment has ac-
n
I rODTl
fr°m
1929.
Correspondingly, dividends
s^has fom^'ETrfe Smi^h ^
Furthermore,
ith
,
(2) The converse of this trend
this
H
Mo
of
five
everv
w
end of World War II, and it far
exceeds the $3,800 produced in
1941 and $3,300 in 1929. With each
worker now producing S154 for
each $100 produced 25 years ago,
a very substantial offset to the
risinS cost of labor has obviously
been achieved.
But this does not mean that the
income will be
to labor bv
^ "V
u
rate
a
worker.
g^ds f.n<* .f0rnTes^this
pr^?UCecj3 a.+ }*e
^nrJVef
in_
Lr ve^
Tout
accru$ns
'4h
h
per
Measuring in dollars of 1947 purchasing power, each worker now
Produces about. ^ a year to
js nQw approaching three quarters
of
8%
Forms Earle Smith Co.
the volume of output
and
an<J saiaries-but this component
(3)
MABSHAT T
^
f.
unremitting in tempo:
x
r
General Motors, $7,840: U. S. Steel,
' ? A
^0£1,o ,300.
f
Interna-
gone
profound economic
a more
and interest have also lagged.
comply.jwitH qui!;ad- .formation
about the ;^ffairs of
ditional, more strihgerit, listing; their companies/and'fchouTd have
requirements.
an
opportunity to voice their
However,1 ^we iuJdersfohd that opinions )on 4important; corporate
the $5,000,000-500 formula would matters.
The passage of this Bill
not
Upon completion of the present
Financial
re-
meet
quirement
panies
120
In either case there
than $100 billion has
after re- income been increasing—the shift to labor has significantly improved
step up
the Exchange has
non-woting stock.
Recently it has adopted a policy
under which any issuer desiring
$3,000,000-300 for- .to list its shares on the New York
1952
resPonding increase in earning
Powei\ More
^Id War*!!' in'shwtw^ave
w°rio war if, in snort, we nave
ko/unnIr
than most people realize
Presently
it makes
difference whether the $5,000,-
000-500
are
York Stock
New
1926,
labor have all forced businessmen to *0vest tremendous sums in
new caP*tal goods without a cor-
twar "dynamjc" econ-
our
is
is concerned,
Exchange
no
Since
products, the normal growth
and the rising cost
of the economy,
and authoritative estimates indi-
nrpttv rlpar nmof
arp
through
terly reports of earnings, except
m a few cases where such a quar-
terly^report time, 89.7% of our
is not feasible At
Thpsp Hats
aboul mimaX
an-
the present
torhho-
,' J
recent years, techno
loglcal change>
introduction of
new
At
ih/if/-/mio
quar-
companies publish quarterly earn'"gs figures, 6.9% publish semiannual figures, and 3.4% publish
That only annual figures.
view.
our
far
As
$3
Equipment
vears
ranital
in sales
mine has produced about
5,300 tons of ore since July, 1953,
shares
assets was pubin the public inbe subject to the
provisions of the 1934 Act.
is still
with
and
gross
held
licly
any company
stockholders
300
least
at
Capital
recent
been spent by all corporations for
this purpose in the past four years,
keep
to
working
Queen
tiQn
nual reports and to publish
for
in
i
,
the Vanadium Queen No. 1 is primarily due to the spiraling
claim has been a well-known cost of labor. However, this is not
Producer of vanadium ores for a new phenomenon in our econ-
financing,
„
to
canital
working
timp
this
with
Even
managed
about
as
needed'for
was
funds
of
dividends
with the growth
on
^Fdies and Exchange Commisre-
Need
Thus
is equal'to about 78 days' sales—
only very slightly above the 1958
ratio and still a little below 1951.
that
Tj,e
Measured in dolIars of
7 50Q acres
located in the Colo_
charges which accrue as 1®47 Pu/haa,nS power, we are
ra^Q plateau
in the vicinity of a result of the additions to aross
using half again as much
Moab
utah
near
the Colorado- vlant and eauivment
capital equipment per worker as
utah state linf except for slx V
equipment.
we used
ly lg years agQ; in
cjajms -m
inter-River minins
Tbe Rising Cost of Labor
many manuf acturing operations
district to the west of Moab. The
The failure of earnings to keep !oday' *h?re is more tbai} $10,000
company's Vanadium Queen mine pace with the rest of the economy lnve^ed in capital goods for every
those of the 1934 Act and the
rules and regulations of the Se"1C
ro_
it
of
rvrpspnt
nnnatonfori
,
sl°ul?nr ovamnlo' TVio T?vol-iinrto
For example:* The Exchange
quires its
listed companies
furnish to their shareholders
thp
working.
.
.
for
capital.
just
pace
-
stand-
question whether
the $5 million asset figure and
million'
the 500 security holder standard
ity not be too high for determining which companies are publicly held and which should be
brought within the provisions of
the Securities Exchange Act.
In
However,
all
inflow
of
'
available
was
unemployment benefits, labor
now claiming a substantial amount
°-f income when men are not
UU111
working
general
"Lms co^^ng^n
these
course,
niearly
war-
;
~
during the 1951-1954 period.'However very little of this
requirements of the New York gross assay value, before producthis size. Stock Exchange go much beyond tion costs, of $84.03 per ton.
double
matter
lion net
Each share of
one-half" share
in
in fact to have been
of stern necessity, as a
stock issues to the tune of $8 bil¬
before Jan. 2p 1957;
or
payrecent
corporations
did float long-term debt and new
capital -stock
share.
per
in
stockholders
to
very
a
seems
Of
cents)
.of' Vanadium
Uranium Corp. at a price
Queen
payments
indeed. Management's
one
study of Table II shows:
many years tne Excnange an estimated average gross assay
500
has been a staunch advocate of value, before production costs, of
visions of the Securities and Ex- ful1 and adequate disclosure of $8L87 per ton and probable ore
change Act of 1934 to which listed corporate affairs to shareholders reserves of approximately
3,395
companies
are
now
subject. It and the public. Present disclosure tons with an estimated average
of at least $5
a8e pensions and supplementary
years
In
Publicly held companies whose
are not registered on a
ply to all publicly held companies,
dividend
conservatism
a
stock at $2.50 per share.
securities
that
trial
ments
Go. Offers Vanadium
/nd
poration
mg
apparent
perfecting the draft of the
Of the 550,000 shares being ofKeitn Eunston
that Act: SecBill, we think further thought tfered, 480,000 shares are being
tion 12 (Regought to be given to defining se- sold on behalf of the company
istration),
section
13
(Supple- curity holders as holders of equity and 70,000 shares on behalf of
mental
Reports),
Section
14 securities to prescribing stand- certain selling stockholders.
(Proxy Requirements) and Sec- ards for the exercise by the ComAjel nroreeds from the salp of
tion
16 (Reporting of purchases mission of its exemptive powers, the 480 ooo
shares, will be
used
and sales made by officers, direc- and to setting the minimum; at
5y the company to retire notes
tors and 10% stockholders of the $3,000,000
gross assets and 300
for
corporate purl
equity securities of their compa- stockholders.
Subject to these —«««
poses
nies and the recapture by the cor- comments, we.believe the Bill unprovisions
can
addition to the fact that the
In
Alstyne, Noel &
stock is accompanied, by a
rant entitling"-the owner to
.presently
subject to the
f o 11o wing
are
return
prod-
narrow
0f $2.50
not
investment
(Table I).
pec ted*
corpora¬
for plants,
need
will
States
many
ties exchanges
added
rather to believe that these trends will be
on reversed in the forseeable future.
be ex- With the automobile workers do-
business
our
new
a
as
which
it is
which
billion
$375
markets
the
than
quotation and vol-; (par." 10
information
ume
/'
reg-
on
na-;. ;
securi- J
tional
the
securities,
their
maintaining
mar¬
encourage
Van Alstyne, Noel & Co., New
might
public York, on July 8 publicly offered
would have the additional advan-
ies
securi-.
whose
ties
list
2,200
p a n
Dividends, Dynamics and Wages
their
for
To. the
extent that these companies
1934.
up
the securities
,
cover about 1,300 companies and
the $3,000,000-300 formula about
York 1,800 companies. A large number
the Fulbright of these companies would be eligjor ijsting
on
the regional
exchanges and one of the strong
objections they now have to list¬
(S-2054)
3
page
the trail-blazing, most indusworkers now earn wages
trend of earnings has been flat which are stepped up with changes
nets, tools, and jobs required to despite the additions to plant and in the cost ot hving as well as
build to the economic levels proeauipment heavy expenditures on output per man-hour. But perhaps
jected for 1965.
capital goods have kept the margin eve" more important, through old
have the opporto the commit-
to
to present
in
from
com¬
building
should
It
tions
the position of the New
tee
in
and
estimated
regulation companies with assets of $5 million or over and
tunity
owned
of the American
in the education
people
ing
Executive, speaking in favor of the
or more
publicly
Continued
share
informa¬
their
increased participation in provid¬
York Stock Exchange
Fulbright Bill, presents views regarding placing under SEC
having 300
providing
additional
panies will be a constructive move
kets.
New York Stock Exchange
in
with
owners
confidence
By G. KEITII FUNSTON*
President of the New
Bill
this
of
a
Thursday, July 14, 1955
...
(180)
*Manufacturing corporations only.
•
"
'* Mtr
——
6.4
4.7
5.6
7.1
23.8
4.8
5.5
5.6
5.9
21.8
Volume 182
out
above, profits have lagged be¬
hind
as
Number 5446... The Commercial and Financial Chronicle
the
growth
the economy
of
whole, profits per dollar of
equipment have clearly fallen sig¬
a
nificantly
since
1929,
and
labor
has received the lion's share of the
increase in productivity.
omy
Seen
the
of
Future?
To
tie
this
and
discussion
in
to
the
to
from
be
,than
off
far
too
to
be
pre¬
the
particular
dicted
with
any
accuracy
at all.
market, we must turn to the
primary indicator of investor ex¬
pectations:
the
stocks and the
yield
And
this
at
has
industrial
for
autumn
most
first
of
stocks
1946. *
bull
yield
time
below
since
the
Indeed,
after
have
their income taxes
their
on
dividends, their take-home, yield
on
low
as
ment.
now
earn
bonds
the
Wendell N.
—
at
has
been added
Co.,
Transmission
Eastern
at
par
($100
per
share)
Texas Eastern will
ceeds
from
the
sale
$70,900,000, which, in addition to
a
30-inch
new
pipeline, include
of
50
Congress
the New
Street,
York
Exchanges.
members
and Boston
Mr.
of "preferred
Stock
Gustafson
was
previously with F. S. Moseley
&
Co.
with
its
portion
in
stock
program
of
the
pipeline to
the
to
changes.
stations,
compressor
miles
of
additional
lateral
and
tions.
to
certain
These
increase
the
existing
sta¬
facilities
new
will
capacity
30-inch
equal to that
carried
by
the
of
Texas
pipeline by
amount
connection
reconvert
Little
Big
a
Inch
transportation of
petroleum products.
Construction
this
quality
they
Little
an
per
the
Little
day).
Big
Inch
an
Reconversion of
Big Inch to petroleum
product service is
additional
Blosser &
Mr.
Schoessling was
previously with Municipal Bond
Corp.
Mr. Verr was with Mid
Continent Investment & Securi¬
Corporation.
ties
being
now
(approximately 200 million cubic
feet
have
expected/ to cost
With Reserve Inv. Co,
Chronicle)
(Special to The Financial
CINCINNATI,
Ohio — Mrs.
Helen S. Herzog has been added
Investment
to the staff of Reserve
Company, Dixie
Terminal Build¬
ing.
$14,800,000.
mo¬
can
tax-ex¬
than
months
bond
ahead
can
this
on
comes
yields
will
over
probably
upward.
So
optimism is clearly running
yield relation¬
ships reflect more than just a high
degree of optimism with respect
at flood tide: these
to
the
stability of dividend
ments—investors
cepting
pay¬
justify
can
the .smaller
ac¬
income
on
common stocks
despite the greater
involved only - if a steady
risks
and' substantial
dend
increase
payments
in
divi¬
be
anticipated.
How justified is this
optimism in
the light of the arguments
pre¬
sented above?
The
seem
prevalent
to make
optimism /does
some
sense
in terms
of
this analysis as far as the sta¬
bility of dividend payments is
concerned,
plant
and
for
a
high
equipment
tures contributes
the
a
economy
as
level
.of
expendi¬
prosperity in
to
whole.
Other
things being equal, therefore, both
earnings and dividends may be
expected to avoid any sharp and
protracted decline as long as the
DEMAND! This
new $35,000,000
plant is now under con¬
struction at Kokomo, Indiana. When it is completed, manu¬
facturing capacity for these popular units will be doubled!
PRODUCTION
TO
MEET
THE
FORWARD LOOK
Power Flite automatic transmission
EXPANSION AT CHRYSLER DIVISION! To help meet the in-
IS ON THE MOVE!
To triple the cur¬
rent
KEEP YOUR
output of Plymouth V-8 engines, a $50,000,000 engine
plant, with latest automation equipment in the industry is
now nearing completion. Its capacity will be 3000 engines a day.
forces
making for a high level of
plant and equipment expenditures
remain strong.
The probabilities also favor a
gradually rising level of dividend
payments
But +this
thing
low
as
over
is
is
moment
all
at
the
time.
same
arguing that an unusually
current
stocks
period of
a
not
yield
on
justifiable
that
common
the
at
same
bond
prices arp de¬
clining.
Basic
earning
power,
upon which dividends must ulti¬
mately be based,
is
likely
to
be
held back by labor's insatiable and
apparently
successful
efforts
to
increase the worker's share of the
national
that this
income.
can
To
the
extent
be offset at
all, divi¬
share will not
dend payments per
keep step (or the present common
stock equity will be diluted), re¬
flecting the need to finance new
equipment designed to increase
output per man-hour.
And, in
addition, expenditures on capital
goods are likely to remain high
due to the
dynamics of our econ¬
introduction of new' prod¬
ucts, innovation of new produc¬
tive techniques, shifts in demand,
and growth of population.
omy:
To
all
of
the caveat
this
that
must
be
EYE ON THE FORWARD LOOK! Multi-million
dollar construction begins the greatest Engineering and Design
facilities expansion in the company's history. Purpose: to keep
bringing you cars demonstrably better than any others.
creasing demand for the cars of THE FORWARD LOOK, a
$20,000,000 plant expansion program will increase the production capacity of Chrysler and Imperial cars by 40%.
added
the
management
of most major American corpora¬
This. Too. Is THE
FORWARD
LOOK
tions
tcday is not responsive to
ownership interests and desires:
they consider themselves arbiters
in the three-way struggle among
consumers,
The
and
labor and stockholders.
latter, being the least, vocal
most poorly organized,
are
likely to continue to be also-rans
when it
comes
to
THINGS ARE
And
ON
THE
MOVE
the forward look
AT
CHRYSLER
CORPORATION.
icated to
is moving ahead with current
one
proposition: To bring to the American
motoring public
a car
at every price level that
driving pleasure, better performance
plant expansion projects amounting to $125,000,000.
you
The basic
greater value than any other car at any
philosophy of
the forward look
is ded¬
more
gives
and
price!
cutting the pie.
Thus, even if all the bright and
optimistic projections of the econ¬
omy's growth should materialize
(and even that is a big assump¬
\
CHRYSLER CORPORATION
tion), the investor should not be
surprised if earnings—and even
more
so
dividends—fail to /keep
pace with the growth of the econ¬
PLYMOUTH• DODGE
Copyright 1955 by Chrysler Corporation
•
DE SOTO
•
CHRYSLER
•
IMPERIAL
Tops irt TV Drama—''Climax!
-CBS-TV, Thursdays
i
.
-J!
f
S.
Gross, Robert A. Lilienthal, Paul
H. Schoessling, Gerald R. Verr,:
Jacob
Warsaw
and Sol Zisook
pression
new
the pro¬
new
Chronicle)
Howard
connecting smaller diameter
lines, and the addition of com¬
100
the
use
—
joined the staff of Straus,
McDowell, 39 South La
Salle Street, member of the New
York
and
Midwest
Stock Ex¬
eight
Eastern's
plus accrued dividends.
to the
staff of Schirmer, Atherton &
publicly yesterday
issue of 160,000
preferred stock of
new
cost
111.
seldom
taxpayers
stocks—and
time when
move
has
is
all
decent
common
a
BOSTON, Mass.
group
to
CHICAGO,
larger take-home in¬
a
on
empt
it
as
Almost
come
at
stocks
common
been
Corp.
of
banking
estimated
are
on
investors
individual
paid
the
the
common
the
5%
(Special to The Financial Chronicle)
common
writing,
pushed
a
bonds.
on
offered
(July 13)
Texas
Gustafson
market
which
Schirmer, Atherton Adds
relationship of that
yield to the return
4%
on
Dillon, Read & Co. Inc. headed
shares
stock
program
facilities in the
gas
21
Straus, Blosser Adds
(Special to The Financial
New natural
i
Transmission Pfd.Stk.
investment
has
program
already begun.
Offers Texas Eastern
an
the reconversion
on
Dillon, Read Group
this
justified only by predicting
future
a
future,
more
any
standpoint, the
stock market may be on the verge
of a
very
dangerous period of
over-discounting, of pushing com¬
mon stock
prices to levels which
can
What
whole,
a
as
they have in the past.
(181)
!
■
•
(
r-tt
22
'
^
.
Continued
The Key to
Peace May Be Gold
Our
B. BARRET GRIFFITH*
By
Reporter
Co., Colorado Springs, Colo.
Members, New York Stock Exchange
Partner, John II. Lewis &
structive
Concludes the most
about would be
accomplished by
expecting a
offered, was not
large as to have a disturbing effect upon t. e outstanding issues.
Also, t.ie instalment method of payment for the 3% bond will tend
realistic treatment of the value of gold.
a
governments do
Because modern
wish
not
any
is
1 d '
s s u e
be
regarded
of
to
money.
there
has
between
been
in
oil
the
at
t i
and
the
eign
B. Barret Griffith
situation
for¬
am
overall
and
and
corpora¬
we
the
increased money sup¬
ply. High depreciation allowances
have encouraged
corporations to
porate
as
the
cor¬
been
recently
Money has been easily
reduced.
obtained
vat
low
interest
will
slight
tax
reduction
consumer
tax
provision
the
sale
applied
any
that
a
new
encour-
events
house
house
realized
from
home.
inflationary
'
from
be
can
on
the
The
in
of
without
income tax payment
old
seen
has the
as
proceeds
old
an
on
profits
the
of
has
spending
any
sale
of
prosperity,
character,
touched all segments of the
has
econ¬
omy.
However,
recently, and since
declining agricultural prices,
including livestock, have resulted
in a depression of
sorts in that
1951
segment
cf
our
Like
economy.
how
be
are
are
ground
15
enemies,
economic
and
there
If
and
Germany
and
and
production,
or
ture.
on
ment
or
profit benefits from a fast
write-off for tax
purposes for any
capital
a
expenditures
reasonable
economy
made.
conclusion
It
that
must
managers
is
our
either
promptly apply their ex¬
pansion policies to agriculture, or
face a possibility of
seeing that
very
brake
on
the economy since
drag it into
At
this
reasonable
"
a
late
for
1951
slump.
date
it
would
to
be
ask
shortly to
Japan and Germany
see
return to their economic and trade
positions
such
of
the
in
power
some
would
East
and
In
the
ago.
years
Japan
case,
the
power
gry
for
be
goods
peace
that
Germany
China, In¬
produced
than by war.
trade
in
the
case
will
the
It is hoped
about.
come
United
In
States
will
either meet the competitive world
price in selling part of its goods,
or
agree that the value of gold
paid by the East for the goods is
ent
Metallurgical
June
25,
1955.
well as a lessened demand, for
a favorable development as far as t .e
market is concerned. This, along with the $100
million of additional Treasury bills which have been offered each
Treasury bills
by 1960. The importance
factors to the growth
the road
of these two
of F. L. Jacobs is tre¬
and should result in a
progressively greater market for
potential
mendous,
products, creating an
its
$35
per
would choose
to sell
world
market
prices
and
at
goods
about
accomplish
by valuing gold given
on
the
present
the
us
trade
in
pay¬
all,
such
a
trade
arrangement
would be better than the giveaway
The
we
have followed.
most
could
constructive
come
out
of
week
in
vest
would
be
pushed
into
the
'■
•
are
stocks, it should be noted that in
1946 when the company had sales
approximately $11 million
sold as high as 24%.
of only
stock
with aggressive and pro¬
high as 1946,
that at the pres¬
figure of about $9 00 a share
it would
ent
appear
is
stock
the
The
'
V
market :is
municipal
because of the sizable floating
Exchange.
Investment
Roller Bearing
Tim*:eti
I
the
best
a
stock
on
.
not too sizable yet,
stepped
up
but there are indications that they will be
corporate bond market has been on
reopened
revival, it is the key to
peace.
stock
the defensive; and
3s
from cor¬
porate issues into the 3s of 1995.
is
the
on
New
York
Stock
Ex¬
change
and
other
prin-
c
i p a 1
e x
-
and
currently
quoted around
to
yield
about 5.6%
53
on
William
the current
Witherspoon
$3.00
annual
dividend rate.
specializes in the manu¬
facture of tapered roller bearings
Timken
with the largest
output going to the
automotive
industry.
O her in¬
dustries which it serves include
those of machine tool and othei4
industrial machinery,
farm im¬
and
related parts
its
of
part
The
•
Bear¬
Comnany.
listed
supply but also because of antici¬
if further weakness should develop in the tax free
that
is
Roller
ing
is
market.
the
like very
of the Timken
the heavy side, not only
sale of the more distant
are
that I
changes
these purchases coming in some instances from the
2Vz% Government bonds. These exchanges
for
money
are
much
■
still
difficult to
that I like
legion, but
security
one
because they
common
Co.
it
find
always
The
However, it is reported t iat some of the longertax-free bonds are being taken out of the market with the
term
road building ma¬
steel, and the
industry. In this day of
mergers
and
diversification ^of
product, this manufacture of a
single type of product is becom¬
ing rather unique. In this regard
it
might be reasoned that the
Company is somewhat vulnerable
in
laying its confidence in this
one
product, but on the other
hard it certainly knows the art
of this manufacture, it is the larg¬
plement
chinery,
and
paper,
railroad
With MLchum, Jones
Ogden Uranium Brokerage
(Special to The Financial Ch onicle>
OGDEN, Utah—Ogden Uranium
LOS
Brokerage has been formed with
offices
at
engage
Edward
2419
in
a
Kiesel
securities
Martin
R.
Avenue
is
a
to
business.
principal
of the firm.
J.
Hutton
York
opened
ment
&
a
Co.,
D, Me.
Stock
branch
Street
under
the
of Laurence H.
manage¬
Staples.
is
now
Calif. —Thos.
Mitchum,
with
Templeton,
South
650
With Merrill
Lynch
(Special to The Financial Chhonicle)
W. E.
of the
Exchange, have
office at 161
&
Spring Street, members of the Los
Angeles Stock Exchange.
—
members
ANGELES,
Lewis
Jones
New Hutton Branch
B I D D E F O R
Main
key to trade
Counselor
St. Louis, Mo.
pated offerings.
ment
the
attractively
very
both for near-term and
long-range prospects.
This stock
is listed on the New York Stock
priced
Municipal and Corporate Markets Under Pressure
!
New
is
and with sales
policies,
almost three times as
reports that certain owners of the
the market for sale.
background, off the stage, so to
speak.
Because realistic treat¬
of gold
a
present price of the
tiveness of the
.
There
re¬
vival of world trade would be t^at
such
with
company
a
bright new future.
As an indication of the attrac¬
increased; the yield of the shortest Treasury
'
' V.''
has
far,
so
which is
obligation.
thing
t^e
attractive
growth situation for anyone with
the foresight and confidence to in¬
money
prices, it is equally
to
expect
that
we
reasonable
war
♦An address by Mr. Griffith before the
Peak Subsection of the American
Institute
of
Mining
and
as
domestic
last five years
pikes
in the release,
reported that there have been some fair-sized switches
present
Although it is entirely rea¬
to expect the sale of our
surplus goods at lower than pres¬
which
as
resulted
sonable
include the treatment of all
capi¬
tal expenditures by them for the
henceforth
million, with Chrysler
and the "independents" to follow
suit. It is estimated that over 65
million
automobiles will be on
WILLIAM WITHER SPOON
ounce.
the
at
estimated
program
about $500
Treasury Bills
have increased t e competition for funds, that
would be invested in the non-Government obligation. Also, it is
higher than
policies
Engineers, Pueblo, Colo.,
in Uurope.
It is easier to obtain goods
and our money managers give tax
relief to farmers and ranchers to
and
'
unfriendly with the Kremlin, it is
entirely
reasonable
to
expect
ment. at say, $100 per ounce. After
agriculture
and Ford will
tremendous new ex¬
3V4S of 1978-83
have disposed of some of tneir bonds, with the proceeds being
used to make the first payment on the reopened 3s. According lo
these same sources, there was no trouble at all in finding buyers
for the highest coupon rate Government bond whicn came into
agricul¬
although not
by production controls,
or
directly affected by price sup¬
ports, has nevertheless failed to
enjoy any spending encourage¬
a
3^s Divested for New 3s
such
Cattle raising,
on
ly with Japan and Germany and
by
restricted
(
with the Kremlin and later friend¬
called,
controls
crop
have been restrictive
tions
•
friendly
West.
are
on
pansion
anticipation certificates which come due March
tax
new
near-term
dia and Russia continue to be hun¬
they
■
•
have been enemies of Ja¬
we
;
l7/s%, proved
to be a very popular issue and they were well taken by corporations, whicn will use tnem for the payment of taxes on next March
15. The purchase of the I7/s% tax certificates by certain corpora-
is
speculation
managers have not been
applied
to agriculture.
Price controls, or
as
The
announced recently
22, 1956, and will pay interest at ti.e annual rate of
How World Trade Can Be Revived
pan
satisfactory return than is available in tne
J •.
more
a
Higher Yield
political wheel.
our
important way.
Government 3s.
from projecting one step ahead in
the turn of
them
gives
have
years
friends
our
our
for
It is still eviaent that t.e aforemen¬
institutions have other channels for investing funds, which
tioned
world
because
last
the larger commercial banks, savings
have not been attracted to this
advices,
to
insurance companies
and
banks
is^ue in any
almost complete the circle
us
whom
whom
and
the
of
accoraing
but,
obtain them;
can
Conclusion
aiW
gold mining, we find that the ex¬
panding policies of our economy
price supports
funds, both the public and private ones, and saving
and loan associations have aiso been buyers of the reopenei bs,
issue,
which
nations
Realistically,
en¬
couraged to buy autos, television
sets and houses
by easy money and
small
down-payments.
Some
aged
fundamental
favorable picture for the
growth of the F. L.
very
continued
gressive
Pension
:
industry, indicate
Jacobs Co. in its fields.
Today,
3% Yield
Get More Than
Can
to the changing
to adapt
satility
needs of modern
the
Banks Still
Many other versions of
hungry for goods
rates.
Likewise consumers have been
attractive security.
discussions will be given, but
always the
this issue and available corporate bon^s is too
whicn tenus to make the Government ooxigation t~e more
narrow,
funda¬
obtain goods through mutually
profitable trade, or by force and
war
if peaceful tf&de cannot be
arranged.
have
the
a
which ordinarily would have gone into corporate bonds
it is felt in some quarters that
ti.e spread between
affairs
to
in effect been deductions
from in¬
come
taxes.'
taxes
that
expect
reported that not
L>at money
Momentous
may
unfavorable development for the banks eitner.
an
has been invested in tne 3s of 1995.
mental issue discussed will be how
spend money on plants because
the cost of such investments have
Furthermore,
world
of
account
few of these 3% bonds have also gone
because it is the judgment of those in
cnarge of tne investments of sucn funds that tne issue is more
attractive than many non-Government obligations.
It is eviaent
meetings of
foreign ministers of the large na¬
tions lie immediately ahead.
As
has been true throughout history,
tions have been
encouraged to ex¬
pand their spending and put into
motion
wheel
paid out on savings deposits. Also, tne tax and
can
be used in making payment for the 3% bond,
be
to
into private trust accounts,
Germany against the Kremlin
intermittently hot cold war,
What will the next spin
the
has
It is
then com¬
an
bring?
the important takers of the reopened 3s. This gives
favorable rate of return, wnich will taxe care of tne money
this is not
and
so-called.
on
a
loan
enemies, Japan and Germany.
We have been allied with Japan
in
it fits into programs whicn have been
economic developments.
because
among
which
the
with
allied
Kremlin and fought the
going to touch only on
and general big pic¬
Industries
been
100,
was
reported tnat commercial banks with savings deposits have
them
Situation
mon
ture without statistics.
During the
last 25 years there has been a tre¬
mendous expansion in the United
States.
have
We
is
which
1995
recently in light of current
been
The Foreign
conclude the outlook for
gold.
Because at this time there
may
Ije more
benefit from a
broad
the
It
Turning to the foreign situation,
the history of the last 15 years
is amazing and possibly indicative.
and from them
view, I
available at
reananged
domes-
situation
c
due
research,
efficient
plants and manufacturing equip¬
ment and technique, and the ver¬
embark
3%
engineering,
that General Motors
Demand
in
3s
market
and
Products
scientific
It has been
reopened and offered in the
amount of $759,000,000 by the Treasury to raise new money has
been well received, according to reports.
It is indicated tnat a
number of investors have been attracted to this issue, whicn was
production.
briefly to look
markets.
sight yet.
The
pletion allowances in mining and
worthwhile
and
new
under
Additional
de¬
Today it is
celerated
general tenor of things because the money
pressure and no lifting of this pressure
the
in
still
are
long term
as
compensate for the discrepancy
that
change
a
is in
gains and taxed accord¬
ingly. For mining, it would seem
reasonable
for
depletion
allow¬
ances
there to be raised to 50%
credit and papaper
of
capital
by the unlim¬
ited i
markets
should
ills
cured
-be
can,
.
though the Treasury financing is the ruling force in the
Even
ex¬
all profits from
more,
the
s
plant
is
as
intends to follow an ac¬
policy
of
developing
diversiiied products and
company
a
the sale of
agricultural products and livestock
ing the theory
w o r
received indicates the
offering."
land
even
necessary
The reception which this offering
demand was very substantial for the 1%%
Government market now, it is evident tnat there will not be much
pense
been follow¬
all
tractors,
a
The tax
tnis obligation.
for
factory building for
industrial corporations.
Further¬
ernments have
that
much
as
payments
March 15, 1956.
payments on
income
fencing and barns and
unfavorable position. Gov¬
an
make
to
anticipation certificates were made to order for corporations and
all ot..er institutions that will have to make sizable income tax
purchase of
The
order
ments .in
from
deductible
taxes.
restrictions on the
credit, gold has been and
issue of
is in
100%
was
switches from other invest¬
to make immediate
to lessen the need
[
I Like Best
well prepared for the Treasury
community
from page 2
The Security
'
long-term bond and the $750 million which was
Says realistic treatment of gold is not only key to trade revival,
but is also a key to peace.
[
Governments
so
revival of world trade, and this could be
a
was
investment
the
because
financing,
con¬
come
gold.
market
The Government
development in the postwar period which could
reference to the outlook for
on
By JOHN T. CHIPPENDALE, JR.
and foreign situation with
Mr. Griffith reviews the domestic
i
July 14, 1955
The Commercial and Financial Chronicle... Thursday,
(182)
LOS
E.
are
ANGELES, Calif.—Donald
Corzine
with
Ferner
Street.
and
Thomas D.
Merrill
& Beane,
Lvnch,
Price
Pierce,
523 West Sixth
est
and
producer of roller bearings,
it does supply a varied num¬
ber of industries.
capitalization of the Com¬
The
pany
is
funded
very
debt
It has no
preferred stock.
simple.
nor
Number 5446
Volume 182
It
The Commercial and Financial
...
merely has 2,421,380 shares of
Chronicle
(183)
Cousrts Adds to Staff
Timken has expanded
its manu¬
facturing capacity very substan¬
tially since the end of the war.
As of Dec. 31, 1945 gross property
amounted to $42.92 million and
nine years later as of Dec. 31, 1954
gross
property
amounted
10
$107.54 million — an increase of
150%! All Of this expansion has
been financed internally without
any
outside borrowing nor in¬
crease in the capital stock.
Sales
Timken
of
countered
because
substantial
a
the
of
lower
(Special to The Financial Ch:;onicle)
million
of
sales
has
Georgia
been
—
added
to
the
staff of Courts &
Street,
New
N.
York
W.,
Co., 11 Marietta
members of the
Stock
ATLANTA,
Charles
Exchange.
Harris
now
and
Ga.
Leonard
—
Howard
H.
with
affiliated
Holt
French
.i
T.
are
&
Joins Beer & Co.
ertson, Jr., has joined the staff of
en¬
panv,
Com-
Inc., Rhodes-Haverty Bldg.
Coleman
Financial
Peck
Chronicle)
Illinois —Theodore
CHICAGO,
L.
is
now
Gorman,
Peck
with
Link,
208
South.
Co.,
Street.
'
Salle
With
(Special to The Financial Chronicle)
&
Newhard, Cook
(Special to
(Special to The Financial Chronicle)
ATLANTA,
ATLANTA, Ga.—A. Willis Rob¬
The
to
La
Street.
Blunt Ellis Adds
(Special to The Financial Chronicle)
Robinson-Humphrey
has become associated with A. C.
Allyn & Co., 122 South La Salle
(Special
Crawford, Inc., 68 Spring St., N.W.
With Robinson Humphrey
The
CHICAGO, 111.—James F. Sears
Ga.
—
William
S.
Askew has become connected with
Beer &
of
Company, Trust Company
Georgia Building.
CHICAGO, 111.—George K. Hendrick, Jr., has been added to the
staff of Blunt Ellis & Simmons,
208 South La Salle Street, mem¬
bers
of the
west Stock
New
York
and
Mid¬
Financial Chronicle)
*
LOUIS, Mo. — George H.
Mugge is with Newhard, Cook &
Co., Fourth & Olive Streets, mem¬
bers
west
Exchanges.
The
ST.
of
the
Stock
New
York
and
Mid¬
Exchanges.
decline
-
production
compared with
as
million
$178.2
Earnings
ATLANTA,
Shainker
With Link, Gorman,
(Special to The Financial Chronicle)
Volume amounted
of;automobiles.
to $135.6
1954
in
?
With A. C. Allyn Co.
2 With French & Crawford
(Special to The Financial Chronicle)
common.
23
1953.
in
share, however, de¬
only slightly as a result of
decline
in operations. The
per
clined
'
this
*
for
reason
of
tion
this
the
elimina¬
the
was
profits tax in
1954.
Hence, earnings last year
were reported at: $4.40 per share
as
compared with earnings of
excess
<
GOING: PLAGES underground
Cities Service...
$4.48 per share in 1953.
with
Now
.
exuberance
the
revival—indeed,
the automobile
of
—
first
the
in
earnings
industry,
quarter of 1955 recovered to $2.06
per share as compared with earn¬
ings of $1.24 per share in the
corresponding period of 1954. Al¬
though sales of the Company are
not
published
on
evident from
earnings that
these
the
not only has
1953
stored,
thus
re¬
probably been
it has
but
been
sales
of
rate
exceeded
the
quarterly
a
seem
basis it would
this
far
and
year
that earn¬
ings of around $7 per share might
be reported for the full year of
suggests
recovery
1955.
arrive
I
this
at
mated
earnings
million of
$180
with
an
before
the
sales
depreciation
at
in
income
and
estimated deprecia¬
(it
$7.2 million
million
basis of
this year
operating profit of 23.6%
I have
taxes.
tion
figure of esti<-
on
1954)
was
$6.31
would then
and
deduct income taxes at 52%: Th:s
would
in
result
income of'
net
a
$16.9 million and would produce
earnings of $7 per share.
To
and earnings
requires many
assumptions to be made and these
assumptions permit a wide lati¬
tude for error to creep in. How¬
.
project
into
future
sales
years
ever,
I would be inclined to estir
mate
sales
ken
and
Roller
the
earnings of Tim-'
Bearing Company for
six years
next
approximately
follows:
as
,
.
I:
Est.
Est.
Earnings
Year
Sales
(Milliohs)
1955
$180
:
„
,
per
j ;
share
'
$7.00-1.
1956
210
8.70
I.
1957
220
9.80
i'
1958
194
1959
218
1960
260
10.20
I
feel
imatcd
es
Company's"
the
that
i
!''
13.50;!;
To accommodate these
sales
9.60
'
further expansion can be financed
completely out of retaining
lU of
earnings plus depreciation cash.
Therefore, I think it might be
possible for the Company to pay
as
much as $4-$5 per share in
1955, depending to a large extent
on
the market value of the stock.
If
the
be
remains
stock
I think the
50's,
justified
in
-
the
Directors would
in
paying • out only
possible $3.50.
stock would advance
j'
the current $3.00 or
if the
But,
to
70
around
a
$4.00 paymert
(to
Cities Service transported more
oil through more miles of
yield 5.7%) would be reasonable,
and
to
if
the
85-90
would
stock
advance
this
year a dividend of
yield
around
5 7%)
would be possible. Looking much
(to
$5.00
further
$10.00
sible
On
stock
into
the
dividends
that
share
per
future
I
pipeline in 1954 than ever before in Company history. Reason
bustling underground activity—more Cities Service .
for this
customers than.ever
think
much
of
as
are
entirely
before in Company history!
i
as
pos¬
by about 1960.
this
at
basis
I
53
offers
to
produce
an
few
years
tion
will
holder cf
excellent
good
and that
turn now,
that
feel
levels
current
of
these
,
to
apprecia¬
the
shares.
@
A Growth
re¬
the next
over
substantial
accrue
CITIES
investment
dividend
a
the
around
patient
Number 11 of
a
series
SERVICE
Company
24
The Commercial and Financial Chronicle.. .Thursday,
(184)
Robert
The
stock.
sale of $75,000 of new
in
enlarged capital became effective
dent
June 21.
tions
News About Banks
NEW
BRANCHES
OFFICERS,
REVISED
Total
pointed
has
international
Chase
of
New
tne
45
with the bank
foreign
serving exclusively
banking.
For eight
years prior
to 1934 he was on the
for
in
years,
official staff, first as an
Manager and later as
branches
bank's
the
of
Assistant
Manager,
a
Raymond
been
appointed
Presidents
T.
and Neal
T. O Keefe have
Assistant ViceChase
the
of
tan in the real
Manhat¬
estate department,
Fitzpatrick has been
promoted to Assistant Vice-Presi¬
in the Aviation
dent
Department.
Newly-appointed Assistant Treas¬
urers
are
Alex
H.
Audrey, Jr.,
Thomas Bellinger, Harry E. Colwell, III,
Kaye H.
Charles
Jones
Fiero,
E.
and
Jr.,
L.
Eugene
Rooks, III.
Sloan
S.
Bankers
*
Trust
of
President
of
July
on
New
the
11
election of Charles G. Garrett and
Harry
F.
Tappen
Vice-Presidents.
the promotion
to
been
assistant
Simultaneously,
Maurer
of Carl L.
Vice-President
Assistant
the
Vice-Presi¬
as
had
Both
dents.
appointments
of
and
Herman
E.
Frenzel and Truxton B. Pratt, Jr.,
to the
York
Garrett
his
started
was
Maloney,
Allied
of
President
%
Corp.
Stores
if
i.!
asociated with Branch
ministrtion.
from
the
He
American
Island will
the
Long Island Trust Company, it
is
Frederick Hainfeld,
announced by
Jr., President, following approval
Assistant
Ad-
graduated
Institute
of
He became
1928.
an
Treasurer
Assistant
in
1946
and
Vice-President
Loan
Supervision,
started with the company in
in
the
Credit
Department.
Stewart
The
Board.
serve
State Banking
the Federal Re¬
Manor
office, which will open for busi¬
ness sometime
during November,
is
branch
third
the
estab¬
be
to
lished
by the Long Island Trust
Company. Construction of a new
building
Covert
on
be¬
Avenue,
Chester
Stewart Court and
tween
branch of¬
to house the
"All
the
of
of
services
present
Long Island Trust Company, in¬
cluding safe deposit boxes, will
afforded
be
to
branch,"
new
of
customers
Hainfeld
Mr.
the
said.
Long Island Trust Company main¬
tains
branches
Road
in
Avenue
East
Middle
on
Neck
Great
in
Garden
City,
addition to the main office
Street in Garden
*
Neck
Stewart
and
on
in
Harry
1929
A
Kosco
moted
of the
*
County
White
*
1935
Tappen
and
Vice-President
Mr.
Assistant
an
1946
New
Finance,
became
Treasurer in
the
and
of
Assist¬
an
in
1951.
Mr.
Trust
Plains,
N.
Company
Y.
Assistant Trust
of
Previously
Officer, he has
been with the bank since 1934.
Edward
M.
Hoffman, of White
former Vice-President in
Plains,
charge of The County Trust Com¬
pany's Hartsdale office, has been
elected
member
a
Board
in
of
Scarsdale
-
Directors.
of
the
bank's
Associate
On
June
30,
Mr. Hoffman retired from
The County Trust Company after
30 years of service.
He previously
1955,
had
with
been
the
First National
recently elected
Philadelphia
Pa.
his
launched
in
career
in
made
was
President of the New York Chap¬
Guaranty Trust Company in their
foreign departments.
While with
ter,
was
American Institute
Bank¬
of
ing, joined Bankers Trust in 1929
in
the
and
Note
Teller
Department
graduated from the American
Institute
of
He
year.
Banking
was
named
the
an
same
same
assigned to the
vision
is
of
with
the
Out-of-Town
bank.
Cashier to those of Vice-President.
Mr.
Kennedy has been a member
of the American Bankers Associa¬
tion's Bank Management Commis¬
1943.
since
sion
the
sented
ABA
company's
the
United
and Mr. Pratt with the
Bond
*
-
Guaranty
New
York
the
Municipal
Division.
*
Trust
tificate
Company
as
of
on
PLAINS,
•
Second
N.
Institute
of
President
Cash
and
due
Govt,
Banking
12,375,622
profits.
41,199,606
36,427,659
51,341,946
1,728,672
if
1,172,383
if
America
States.
ern
Mr.
Cleveland
the
was
brought
to
up
that
from
stock dividend
$100,000, both by a
of $50,000 and the sale of $50,000
National
of
in
1952
ant
by
from
Amos
First
City Bank, in
was appointed
Cashier.
and
the
He
was
National
1947, and
an
Dartmouth College in 1947
subsequently
attended
the
Tuck
School
of
Business
Administration.
On
July 12 tne uuaranty Trust
Company announced the appoint¬
ment of Louis R. Ince and Everett
R. St.
Aubyn as Second Vice-Pres¬
idents; Howard M. Ashley and
Stephen J. Curran as Assistant
Secretaries, and Robert A. Harris
As
of
a
result
America
North
The
a
stock
the
new
operative
capital
having
*
❖
ler, N. J., has increased
increase
$147,000 to
brought about by a
stock dividend of $49,000 and the
was
In effect, the service is a
revolving
loan
account
with
checking privileges for individ¬
uals,
according to R. C. Kemper,
President of City National. Flex¬
ibility and convenience are ad¬
vantages of the new plan, said
Mr. Kemper, because the service
capacity until he
was pro¬
if
*
t-
SOCIETY FOR SAVINGS
IN THE
CITY OF
office
the
Cur¬
at Washington, D. C.
The
of
Comptroller
the
rency
capital of $200,000, and surplus of
Cecil E. Barney is indi¬
$100,000.
cated
President
as
organization, and C. W.
Jones
Cashier.
as
if
if
if
The directors of the Fort Worth
National
Becker and
that
sistant
at
Gilstrap
to
Estil
Bishop,
Clay
and
Hollis H. Bowen As¬
Officers,
Trust
374,269,922
341,579,404
23,165,216
and
372,243,437
345,291,517
resources
25,425,001
rity
secu¬
holdings
Loans
123,423,155
121,003,791
62,683,328
___
65,903,^51
discounts
&
if
if
NATIONAL
CENTRAL
CLEVELAND,
if
*
*f
the
"Borrow-by-Check" customer
to make
application
time
he wants a loan or to specify the
purpose for which the money is
to be used.
Moreover, he said he
can get his loan any place or any
time he wants it, simply by writ¬
ing a check.
The "Borrow-byCheck" plan was designed for per¬
sons
who want loans for major
purchases or expenses, Mr. Kem¬
per stated. He noted that this is
an
the first time such
every
bank,
though
been
inaugurated
banks in Boston,
homa
Gas
facility
banking
vestment of $175,000, the
tion
is
of
Everett,
Law¬
Engineer for the Oil &
of the Hibernia
of
Bank
by
Wallace
The
Buren
city.
When
completed
University
from
bank
Kansas
where
BANK
OF
four years.
past
his
assume
the
duties
on
& Gas Department,
the
able
five
Company
Broadway, New York 4, N. Y„ at the
lished
the
business
in
the
provisions
of
State
the
June
on
Dec. 31,'54
510,991,988
Cash
and
S.
109,732,455
Govt,
191,374,743
secu¬
Cash,
of
discounts
184,041,391 191,075,691
profits—
3,085,526
*
THE
FIFTH
THIRD
2,600,922
i\i
Sjf
interests.
more
in¬
balances,
reserve
cash
and
other
with
institutions,
cluding
items
in
process
collection
of
United
$7,693,293.27
States
Government
obligations,
direct
guaranteed
Obligations
of
States
16,985,543.70
and
2,114,035.57
discounts (includ¬
and
Loans
and
subdivisions
political
ing $463.52 overdrafts)
Banking
Other
and
vaults
and
tures
14,923,999.02
owned,
fix¬
premises
furniture
none;
101,463.65
202,310.35
assets-
TOTAL
ASSETS
$42,020,645.56
LIABILITIES
Demand
deposits
of
partnerships,
viduals,
indi¬
and
$21,945,944.14.
corporations—
Time
deposits of individuals,
partnerships, and corpora¬
if
if
TRUST
resources
Dec. 31,'54
and
due
from
76,596,688
74,041,349
holdings
121,633,202
126,297,050
&
S.
discounts
124.000.308
100,861,876
profits.
3,346,304
2,740,062
Govt,
Loans
Undivided
secu¬
*
AND
ILLINOIS
TRUST
CO. OF
which
at
Deposits
Cash
This action
approval
S.
NATIONAL
Undiv.
Dec. 31,'54
$
$
2,520,016,539 2,729,643,148
Currency
TOTAL
DEPOSITS
the
of
ratification
banks.
ana
the
Under
program
Trust
&
receive
stock
change
for
Surplus
of
are
President
of
The
Dale
557,095,701
622,158,650
&
holdgs.
1,010,789,881
1,247,587,765
discts.
749,592,807
profits.
19,047,703
of
value
of
pledged or assigned to
liabilities
secure
other
are
after
deduction
of
William
above-named
Bank
the
that
of
best
$9,715,230.87
'
re¬
deduction
160,379.43
of
D.
Pike, Secretary
institution,
hereby
above
my
shown
as
after
are
reserves
I,
of
63,822.67
Securities
above
ex¬
above
shown
as
of
serves
(b)
for
and
purposes
Loans
(a)
of Commerce, will continue in the
statement
knowledge
is
true
of
the
certify
to
the
and belief.
WILLIAM
capacity, and John A. Oulli-
D.
PIKE.
Correct—Attest:
688,374,766
se¬
consists
par
MEMORANDA
Assets
Graham,
National
total
with
stock
$1,000,000.00.
without
expected to
capital
institution's
common
at the time of the
$240,000,000.
ACCOUNTS— $42,020,645.56
CAPITAL
+This
of name. The combined
capital funds of the two banks ap¬
ceed
$3,366,047^46
LIABILITIES AND
TOTAL
change
consolidation
AC¬
CAPITAL
COUNTS
and the
Commerce
profits—
TOTAL
an¬
enlarged bank would operate un¬
der the charter of The National
Bank
$1,000,000.00
1,000,000.00
1,366,047.40
t
fund
Undivided
Company
of The Na¬
their shares,
ACCOUNT3
CAPITAL
Capital
Bank of Commerce in ex¬
tional
189,150.62
$33,654,598.16
LIABILITIES
TOTAL
shareholders of Louisi¬
Bank
J.
liabilities
Other
of
and
$38,465,447.54
of
Comptroller
the
of
on
519,188.51
etc.)
checks,
approved.
is conditioned
430,297.47
:
deposits (certified and
officers'
the shareholders of the respective
same
due
banks—
Govt,
curity
Loans
was
insti¬
tutions
2,269,410,558 2,476,975,255
and
from
U.
consolidation
the two institutions
po¬
11,305,496.42
banking
of
Deposits
Other
an¬
meetings of
respective boards of the two
CHICAGO, ILL.
June 30,"55
resources
The
and
subdivisions
litical
Sitges, President of the Louisiana
249,711.81
,—
States
of
Deposits
The
& Trust Company.
States
United
Government—a
proximate 12 million dollars, and
if
CONTINENTAL
by Dale Gra¬
National
Bank of Commerce and Percy H.
total resources
BANK
28
of
3,964,809.19
__
of
Deposits
$
352,327,346 324,940,573
321,717,961 298,367,149
Deposits
June
on
President
ham,
would
$
Cash
CO.,
OHIO
June 30,'55
Total
than 25 years were made
nounced,
UNION
CINCINNATI,
by
York.
New
balances
banking
of
management
Plans for what is said to be the
the
holdings
Undivided
110,353,643
191,658,847
—
&
473,812,601
from
due
banks
U.
509,269,678
468,702,841
resources____
pub¬
made
ASSETS
first bank merger in New Orleans
banks
Total
1955,
call
a
of Banks pursuant to
the
Eanking
Law
of
Alexander, the department
related
the
30,
with
accordance
Superintendent
years ago,
nouncement followed
OHIO
OF
of
Engi¬
July 15. Mr. Davis said that since
the organization of the bank's Oil
in
Sep¬
Underwriters Trust
Mr.
instructor in
the
E.
CONDITION
OF
REPORT
President
Petroleum
neering
for
the
of
an
of
will
in
tember, the off-street banking fa-
June 20
National.
to
comes
been
Orleans,
on
Davis,
M.
Hibernia
Department
He
New
announced
of
has
installa¬
built on East Van
Street, in Arizona's capital
being
close
*
Kansas, has been appointed
Everett
its
of
Representing a
land, building and equipment in¬
in Arizona.
type
Department
the
complete
of 50
it was
he
drive-in
recently
*
Porter
National
La.
first
Dallas and Okla¬
if
Petroleum
a
City
City.
rence,
four-window
National Bank for
"Motorbank"—the
plans have
by
similar
was
Phoenix,
loan service
a
has been offered by a Kansas
recently broken in
Arizona, by the Valley
Ground
that it is not necessary for
added
Bank
June 30,'55
by
Vance, President.
credit rating of the borrower. He
known
from
due
Govt,
S.
according
made
announcement
tions
$
P.
James
and
Mar. 31,'55
$
S.
F.
G. Roberts As¬
M.
and
Cashiers
an
Worth,
meeting on June 30,
a
H.
elected
Fort
at
Bank,
the bank.
*
June 30,'55
the
under
Primary
sistant
is, loans made without collateral
based solely on the personal
of
bank has been formed with a
new
sonal credit has been approved by
OHIO
CLEVELAND,
Texas, is announced by the
Texas,
Mr. Kemper explained
"Borrow-by-Check" loans are
essentially signature loans — that
on
Na¬
Christie,
Corpus
of
Bank
tional
charter
a
Mercantile
the
for
provides for loans available any¬
where, any time and for any pur¬
pose
to individuals whose per¬
has experienced exceptional
growth and has proved of great
value to the oil industry and its
its capi¬
$271,000; the
City,
Kansas
of
&
in that
moted to Vice-President.
Total
The First National Bank of But¬
Company,
Bank
A.
/
tal from
made
January,
merged with
Company
in
was
*
*
National
under
June 23.
on
City
by
intro-*
plan
1929, he became Assistant to the
rity
dividend
loan
Executive Vice-President, serving
Falmouth, Mass., has en¬
larged its capital from $100,000 to
become
was
in
Pennsylvania
of
$150,000,
North
1928, and Treasurer the following
When the Bank of
U.
if
of
$50,000 the Falmouth National
Bank
He
1914.
Treasurer
banks
if
Assist¬
graduated
of
November.
stock.
new
Philadel¬
of
Bank
figure
Bank of New York, now the First
employed
the
in
Assistant
Loans
The capital of The St. Lawrence
duced
John
1934, has been elected
with
career
rity
*
pany's business in the Southwest¬
with
the
the
of
his service
with the company, he has been
identified with its lending activi¬
ties. Mr. Scott began his banking
$200,000, the amount, having been
associated
administering
1918.
1. ' Throughout
July
40,859,884
com¬
be
to
group
since
Senior Vice-President, effective
a
Deposits
A.
Vice-Presi¬
a cer¬
from
__
personal
of
type
"Borrow-by-Check"
if
Trusts
and
phia since
$
County National Bank of Canton,
N. Y., is reported as of June
22, as
dent,
if
101,517,617
discounts
Undivided
the
American
the
Cashier
if
108,932,738
secu¬
holdings
&
of
is succeeded as Vice-
and
if
131,024,379
banks
S.
the
Philadelphia National Bank by. G.
Edward Cooper, as noted 'in our
issue of June 30, page 3020.
Mar. 31,'55
13,821,392
___
on
System
Banking
Mr. Kennedy
of
member
a
in
holder
Y.
118,153,268
resources
Deposits
July 8
Charles
WESTCHESTER,
$
Total
Loans
of
OF
repre¬
He has been
United States.
U.
June 30,'55
rity
announced
appointment
Cleveland
WHITE
U.
*
as
Collection
Check
also
He
Committee
Joint
the
Cash
Frenzel
States Government Bond Division
Santos
❖
BANK
in
April, 1929 and elected to a Vicein 1941.
In Septem¬
ber, 1948 he added the duties of
banks
di¬
Mr.
and
branches.
NATIONAL
Cashier
Presidency
Deposits
❖
he
Mr. Kennedy
Assistant
made
Total
Janeiro
1920,
became manager of the
year
the
Assistant
Treasurer in 1947, and is presently
In
of the bank's
analysis department and later the
City, Mr. noffman
spent several years in Brazil with
de
was
Philadelphia
The
1918.
manager
First National
Rio
Farmers
which
Bank
with
merged
National
Kennedy
banking
the
with
1907
of
Bank
Mr.
48-year
Mechanics
The
of
National
Philadelphia,
City Bank of New York and the
Maurer, who
Cashier
and
President
Vice-President
of The Pennsylvania Company for
Marshall, of Mount
New York, has been pro¬
to the post of Trust Officer
of
Institute
executive, brought
to a close a distinguished career
in the banking business with his
retirement on June 30, as Vice-
Harold W. Scott,
R.
liberalzed
of
issuance
22
June
♦
*
*
The
simplified and
a
will
similar title in the merged
a
bank.
if
Mo.
widely-
Kennedy,
H.
known banking
7th
City.
if
Executive
Louisiana,
of
Vice-President
hold
Eu¬
Committee.
McCarroll,
M.
gene
Chairman of
become
Executive
the
Chicago.
What is termed
Trust
if
transit department.
Hartsdale
Credit
4,153,821
was
graduate of the National Institute
York
3,818,592
by the New York
in
Tappen, who is in charge
Branch
profits.
Department and
an
Banking in
1951. Mr.
Office
was
36,726.665
*
&
Stewart Manor, Long
career
with Bankers Trust in 1933 and is
ant
announced on July
President, Richard L.
Jr.
Mr. McCarthy is
City,
by the
11
14th Street, New
and
posts of Assistant Treasurer
Mr.
of
Carthy to the Board of Trustees of
New York Savings Bank at
8th Avenue
also announced.
were
an
Charles E. Mc¬
of
fice, will begin in the near future.
Company
announced
York,
*
Colt,
58,400,235
47,685,265
James
The
Avenue,
*
57,806,633
discounts
&
Undivided
*
be the site of a new branch of
Floyd M. Brown, Leonard Casey
and
election
The
the
on
Isthmus of Panama.
*
*
Mr.
bank's business in the Middle and
Near East, has been
as¬
are
Loans
office.
Presi¬
on
All
as
Savings
service has been announced in the
sociated with the company's main
July 8.
specializes
in
who
Major,
the
Baker,
Stewart
announced
dent,
Assistant Treasurers.
of
Bank
Manhattan
J.
the
31,475,679
secu¬
holdings
rity
MacDougall
in
department
York,
M.
and
been
Vice-President
a
Roderick
ap¬
33,562,202
_—
Govt,
and
director of Junior
a
Achievement of
196,959,434
from
due
and
S.
232,816.962
___
—
banks
U.
Major
Trust
will
Bank,
214.030.396
215,765,865
resources
Deposits
Cash
J.
Harris
if
CAPITALIZATIONS
James
Dec. 31,'54
Rela¬
Bank, of Chicago, has been elected
Treasurer and
J.
June 30,'55
Bankers
and
ETC,
N.
PATERSON,
COMPANY,
CONSOLIDATIONS
NEW
Public
of
ai]d Business Development
for
TRUST
AND
BANK
NATIONAL
FIRST
Vice-Presi-r
Lindquist,
Charge
July 14, 1955
ber
will
continue
as
Executive
C.
W.
KORELLl
"
,
17,000,309
Vice-President.
now
President
-
Percy ,H.
of
the
Sitges,
Louisiana
JOSEPH
•
•
'
*
B.
V.
TAMNEYI Directors
SUMNER
:
FORD]
i
.i
>.
Volume 182
cility
without
parking
leaving their
or
"The Motorbank is
cars.
an
added
(
downtown
explained.
for
and
bank's
are
home
blocks
Manager of
located
the
from
office,
*
*
Los
Angeles
June
open
Los
office
an
Angeles.
lions
the
will
in
The
throughout
lornia
known
be
Southern
Can-
administered from
the
bank's
of'
board
in the heart of the
Los Angeles financial district, in
quarters
vicinity of Sixth and Spring
*
The
Bank
*
South
of
San
Fran-
California
Anglo
San
of
San Francisco office
South
National
Francisco,
elusion
of
of
Bank
the
upon
con-
negotiations
merger
under way,
it was announced
July 7 by Paul E.
Hoover, President of Anglo Bank,
now
jointly
on
P.
and E.
Kauffman, President of
the Bank of South San Francisco.
The transaction will be subject to
the
approval
authorities
other
formalities,
necessary
said.
The
supervisory
of
the completion
and
South
San
of
they
Francisco
institution,
established
in
1905,
bas
deposits
of
approximately
$11,000,000 capital funds, it
is
stated, exceeding $700,000 and total
assets of approximately $11,800,The South San Francisco of-
000.
will
California
central
and
bring
28
to
communities
in
of the Fishermen & Merchants
Rank, located in San Pedro are
,to be "J e*cess of $A^'°8 '
J
.
the
number
which it
of
operates
is
'
«
National,
Paid
bv
L«i
i ?
it is
l
to
about Aug. 15.
'
Paul E. Uhl, R. A. Walter,
and W. H. Wieland, Jr., were
elected Assistant Vice-Presidents,
Elected Assistant Cashiers were
D. Baillie, H O. Benton, F. W.
Peterson, C. W. Roberts, R. W.
^
ai?
Vx
Vojacek. VicePresident LeQuesne began his
banklPS career in 1927 with the
S1uai<?la,\ ^rus* Company in
T
Cleveland,
Sherman McFedries, former Ac-
count Executive with a Los Angeles advertising company, has
California
™as
E
i
D
5"
announced,
Mr.
Bank.
Representa-
sXequlntly
Ac-
withTStef Cone
Executive
&
McFed-
associated with'the Union
^bTicTeHtfo'L
advertising agency,
Beldlng'
Manager of Rheem
Manufacturing Co., Western Di-
Advertising
visjon
with
an(j
was
Account Executive
California
Transit Advertis¬
George T. Sim¬
mons, previously Cashier of The
First National, is Assistant Vice-
President and Manager of the new
Charles J. Cooley,
jrence
A. Jones,
sociated
have
and
Huntsman
with
been
Law-
all previously
The
made
as-
First National,
Assistant
Man-
Dr. W. W. Baham, former
President, has retired from active
•duty but will serve in an advisory
capacity during the remainder of
the year.
Miss B. M. Warrens^
iormer Vice-President, will henceagers.
T®rth
•estate investments in Yreka.s:
«
of America of San Fran-
Bank
cisco, Cal. has completed arrangements
to
purchase Peoples Bank,
in the Lakewood, Cal, area of Los
Angeles
place
its
branches
County,
main
into
The
announced
Francisco,
San
and
office
operation
plans
of
dent
He
Chairman
National
the
of
the
of
of
Bank
and Presi¬
Seattle;
Marine
the
of
has
business.
active
formerly
Commerce
an¬
Price
Andrew
from
Board
Wash.,
Seattle,
that
Com¬
of
Bancorpora-
as
part
Banking
Hongkong
and
Corporation
Herrick
Barrett
&
Co., Inc., on
for public sale
750,000 common shares (10 cents
par value) of Stewart Oil & Gas
Co., priced at $1 per share.
July
offered
12
which was in¬
corporated on Feb. 1, 1955, will
use the proceeds to repay a bank
note of $75,000, and for drilling,
development
and
for
purchase
of additional equipment. The com¬
pany owns or has an interest in
proven
or unproven
gas and oil
leasehold royalty, overriding roy¬
alty, mineral and fee interests and
oil payments in six counties in
company,
Texas and certain unproven uran¬
ium
vanadium
and
in
counties
two
company
owns
mining leases
in
its
The
Utah.
own
drilling
rig.
capitalization of the company
consist of 1,600,000 shares of
stock.
common
Agency
by S. Clark Beise, President
of America, and Laban
Bank
H.
Brewer, President of Peoples
Bank.
The joint
announcement
stated that the
142 officers and
continue
to
operate the three branches. Laban
Brewer
has
been
appointed
a
application
with
the
subsidiary will be
incorporated under
California and
The
will
Hongkong
a
State bank
the laws of
be
and
known
as
Shanghai
Banking Corporation (California).
The present agency of the bank,
insurance
business,
company's
the
is
spread
because
the
of
agency plants
that
underwriting activities
developed, for numerous
were
the wide¬
large com¬
thousands; none of these are required
investment part of the industry, and,
indeed the investment functions are conducted by a quite small
panies
the
running into
the
lor
of
operation
the
proportion pf the industry's personnel. Piemium rates are subject
to governmental supervisory review, whereas supervision of in¬
vestment
activities
is, where present, limited.
the longer periods, the underwriting part of the
supplies an important proportion of tne "plow-back"
tnat provides insurance companies with the means to expand their
operations. True, in some periods, such as the present, when
Finally,
over
business
premium volume is growing rather rapidly, the ratio of
dividend
investment income declines wnile dividends are kept
surplus. But for the periods of normal
payout to
low in order to build up
growth the major portion of the "plow-back" comes from
under¬
true particularly of the units that
consistently show large underwriting profit margins; those with
skimpy margins have to resort to their stockholders more often
for funds to support any rapidly increasing volume of business.
And so it is fitting to see how the various companies make
out in connection with their long-term underwriting profit mar¬
This is
operations.
writing
gins. The accompanying tabulation gives, for
through 1954, the average loss ratio, expense
a ten-year span
ratio and under¬
It will be noted that for the firewriters
writing profit margin.
tnere is not much variation
in
the
loss ratio from
to
company
Most of the variations in profit margins comes out of
the expense column. And tnis is logical, for an insurance company
bas a less measure of control over its losses (wnich are so much
company.
subject to the forces of nature) than it does over its expenses:
in the expenses of operation that capable management is
and it is
a
sufficiently lengthy period is used
Surety
& Shippers———
Bankers
Boston Insurance
i
Illinois—Warren
J.
0.5
51.1
40.7
8.2
41.5
3.5
6.3
Casualty
57.2
36.5
Continental
Insurance
56.0
38.0
49.0
36.5
Federal
Insurance
6.0
14.5
r
30.4
53.3
16.3
56.9
37.7
5.4
Fire Association
56.9
41.7
1.4
Fireman's Fund
56.0
37.8
6.2
5£.8
Firemen's Insurance
Glens
37.7
2.5
56.2
41.8
2.0
5.1
—
General Re-Insurance
55.3
40.2
3.5
54.7
Hanover Fire
39.6
56.3
Falls Insurance
Great American
42.0
3.3
58.5
36.8
6.7
55.4
41.4
3.2
54.9
37.8
7.3
62.5
37.5
0.0
National Fire
56.1
41.7
2.2
National Union Fire
55.8
40.3
3.9
62.7
35.7
1,6
56.5
41.4
2.1
51.1
42.7
6.2
52.3
39.9
7.8
51.2
40.6
8.2
54.3
42.2
57.4
43.6
55.0
37.4
7.6
33.0
44.7
22.3
55.6
42.0
2.4
55.1
40.8
4.1
56.4
38.7
4.9
56.5
37.1
6.4
51.9
40.4
7.7
52.3
40.0
7.7
Fire
Hartford
Home Insurance
Insurance
Co. North Amer
Casualty
Hampshire Fire
Insurance
Insurance
Insurance—
Paul Fire & Marine^
Providence
St.
Wash.
Guar
United States Fid. &
-
—
Amsterdam
New
Phoenix
CHICAGO,
2.7
43.2
Continental
Pacific Fire
Chkonicle)
to The Financial
3.7
39.4
55.0
American Re-Insurance
3.2
38.9
57.3
American Insurance
3.1
57.9
__
42.3
574
Agricultural Insurance
4.4%
41.7
54.5
Aetna Insurance
American
Profit Margin
37.7%
55.2
Casualty
Northern
(Special
Expense Ratio
57.9%
North River Insurance
Joins du Pont Staff
Westchester Fire
3.5
—1.0=
-
-
•
CHICAGO, Illinois—William B.
mer
&
staff of Wayne Hum¬
These
ratios
are
of
the
New
tjhey are on a
involved.
and
York
Now With
Midwest Stock Exchanges.
Merrill, Turben
'Special to The Financial Chronicle;
& Co.
(Special to The Financial Chronicle)
ST.
now
Mo. —Al Carty is
affiliated
with
Slayton
&
LOUIS,
Co., Inc., 408 Olive Street.
Two With King
(Special
to
The Financial
SPRINGFIELD, Mo.
Keiffer
are
and
Merritt
Building.
Thomas
connected
now
&
and are not averages of
consolidated basis, where fleets
from dollar figures,
are
percentages. Further
105 West Adams St.,
Co.,
members
at
an
investment,
d'etre.
New
Joins Slayton
Cal., has filed
and
Massachusetts Bonding
will
Shanghai
California
State
Banking
Department
for
permission to engage in the business of a commercial and savings
bank in the State. The proposed
Francisco,
Insurance Stocks
an
former is not only tne basic
part, but the more important, too. Witnout tne underwriting, the
insurance company would become merely an investment trust.
The underwriting end of the enterprise is the industry's raison
underwriting
Aetna
Common Stock Off'd
*
*
*
The
—
of
-Ten Year Average-
,
to
divisions
two
Loss Ratio
Stewart Oil & Gas
joined the
Washington office Jean Tippery
was aPP°
Assistant Manager.
the
lor L.e test.
Hummer and John D. Carrill have
Assistant Secretary of the Mills
.f:
'he bank s Seattle,
This Week
Of
reflected, always assuming
tion.
San Francisco head office since
1952. Wesley P. Johnson has been
two
on
will
retired
was
:?
Bank
in the official staff of the bank, Weber has become affiliated with
Fulmar J. Keaton will assume Francis I. du Pont & Co., 141 West
the position of Manager at the Jackson Boulevard.
Mr.
Weber
bank's new Mills office which was was previously with A. G. Becker
scheduled to
start operations & Co., Inc.
July 5 in temporary quarters at
43 El Camino Real, Millbrae. Mr.
With Wayne Hummer Co.
Keaton has served as a Commer(Special to The Financial Chronicle)
cial Loan Officer at the bank's
and
June 27. Anjnouncement of the purchase was
made on June 16 in a joint state-
members
of
nounces
June 14 that the board of directors,
at the
regular monthly
meeting approved three changes
banking system
staff
«
ft
National
The
on
San
•of
count, totaled $27,500,000.
sue,
McAllister, President of
Bank of California, N. A., of
Elliott
of the Bank of America statewide
ment
and
capital
funds,
which included profit and loss ac¬
appointed Assistant Manager and
devote her time to her real
*
deposits
$630,000,000,
as
Giving effect to the current is¬
%
ft
»
mately $6,000,000.
ported
Company from 1950 to 1955.
in
The First National Bank in Yreka
S.
$2,240,000.
The
*
*
*
bad assets it is stated of approxi¬
Merlin
approximately $2,dividends paid were
At Dec. 31, 1954, ap¬
man>
m
opened the Yreka Office of Anglo
er)
June 27
Established in 1929,
Anglo office.
Francisco
San
were
and
merce
*
*
Arch F. LeQuesne and E. L.
Stone were elected Vice-Presidents of California Bank of Los
Angeles, Cal., at a meeting of the
board June 13> Frank L- Kin§'
President, announced. C. D. Sher-
as-
?u,tessCnn'rune 2! IS
t-
340,000
he three banks, that actual
transfer of business will take
waS
tvt
premises
?
of
*
announcement
subject
expected,
the approval of the shareholders
sets of The First National Bank in
y
First
the
$470,000,000
than $700,000,000, Mr. King
It
Anglo California National Bank
it-
with
been
proximate total resources were re¬
joined the public relations staff
of San Francisco acquired the
an
has
California Bank presently has 48
offices and resources totaling
and
offices, Mr. Hoover said.
*
Fox,
Richard
M.' Roche,
Vice-President;
and
Melvin J.
Callaghan, Cashier. Mr. Fox has
represented the bank in the Orient
for many years, while Mr. Roche
and Colorado Street at ings for the year after taxes and
Raymond in Pasadena. Resources provision for depreciation of bank
lice will be Anglo's 44th in northera
bank
H.
Oakland
said.
*
cisco of San Francisco will become
the
J.
more
"
Streets
proposed
Samuel
include:
closes, it is announced, that earn¬
already had been started for bank-
the
By ARTHUR B. WALLACE ■
It
the
offic* at Colorado Street at
di-
ing
of
Agency since 1920 and Mr. Calla¬
ghan since 1928. The 1954 annual
report of tha Hongkong Bank dis¬
He said that negotiations
rectors.
Officers
Union National Bank of Pasadena
& indicated, has total resources
.^.approximately $18,000,000 and
Los Angeles main office,
according to T
P
Coat<?
Chairof
countries served by
many
President;
California Bank have been approved by the boards of directors
of tho respective banks.
The
downtown
bank's opera-
June 8
on
34 branches."
our
will
new
man
of
chants Bank of San Pedro, with
on
it
applied to State
authorities for a permit
banking
to
became
when
2
President
ing the
the Union National Bank of Pasadena and the Fishermen & Mer-
main office in
a
of the
said:
incorporators
eign banking transactions involv¬
*
ments for the proposed merger of
Company of San Fran-
cisco to establish
L.
Frank
*
King,
California Bank, of Los Angeles,
Cal., has announced that arrange-
Decision of First Western Bank
and Trust
the
of
one
Bank and Insurance Stocks
Francisco Agency and
San
thereby assist them in their for¬
*
said.
*
Bradford, former Manager
the
of
area,
two
Motorbank, will supervise the latter's operation, Mr.
Bimson
to
"The prime purpose in filing
41,000 deposit accounts. Its
main office, to be known as the this application is to be able to
Lakewood Village Branch, is at offer our customers a complete
4140
Norse
Way.
The two domestic banking service, enbranches are in the Lakewood bling them to make deposits and
James Dismuke, Vice-
President
tinue
Ian H.
25
(185)
80
over
concerned, it
entirely the need for
parking."
Supervisor and Advisor
three branches. Peoples
operating in San
years, will con¬
operate
as
heretofore*
for
approximately $23,000,000 and proposed bank
of
Bimson
eliminates
a
the
.
been
Francisco
Bank, in operation since May 15,
1942, has resources, it is stated,
for
Valley
A.
"Where routine bank-
functions
ing
Carl
act as
designed
convenience
customers,"
President
Bank
which has
Vice-President in Bank of America and has been designated to
w
■'<
Financial Chronicle
The Commercial and
...
will permit customers to
deposits and cash checks
make
as
Number 5446
Co.,
Inc.,
Merritt
Chronicle)
—
C.
Max E.
Sawyer
with
King
Woodruff
Ohio —R.
become affiliated
CLEVELAND,
Nash
has
Merrill,
Commerce
Union
members of
Building,
HANNIBAL,. Mo.
—
Francis
Members
G.
Meyers is now with Bankers Bond
& Securities Co., B. & L. Build¬
ing,
Qfnnlr
members
Fvrhanffp
of
the
Midwest
on
Re<piest
Laird, Bissell & Meeds
Members New
Chronicle)
Quarter 1955
Second
Copy
With Bankers Bond & Sees.
(Special to The Financial
ANALYSIS
Bank Stocks
Midwest Stock Exchange.
the
AND
13 N. Y. City
Dale
with
Co.,
&
Turben
COMPARISON
York Stock Exchange
American Stock Exchange
120 BROADWAY,
Telephone:
Bell
NEW YORK 5, N. Y.
BArclay 7-3500
Teletype—NY
(L. A. Gibbs, Manager
1-1248-49
Trading Dept.)
Specialists in Bank Stocks
•
July 14, 1955
The Commercial and Financial Chronicle... Thursday,
26
(186)
•u:1
amounting to 80%
tions
Continued
from first page
noted
Some Readings
of Our
has
question now is: Should we
expect a fall-off from our present
condition of full employment and
at
long time to come, and
a
rising rate.
a
production;
a
prolongation
of
healthy economic
growth
at
a
prospective Federal,
government pur¬
chases of goods and services to¬
gether, it appears to me that 1955
sustainable
will
rate;
the develop¬
or
of a
speculative boom in
construction, inventories, or cor¬
porate securities?
Nearly all of
us
strongly prefer the second of
ment
these
three
chances
of
and
local
witness
the
if
demand
effective
an
little,
very
smaller
any,
tnan
billion of governmental
$77.5
purchases during 1954.
Outlook
Our
for
Let
we
consumer
economic
demand has been
exuberant
beyond
the expecta¬
tions of all but the most optimis¬
off the
road
narrow
which
separates the precipice of
price inflationffrom the abyss of
economic depression.
In
studying the economic
pros¬
pect for the balance of the current
year,
in
we
usefully
may
turn, the probable
three
consider,
of the
course
great
types of demand for
and services produced
expenditures. So far this
consumer
year,
have
middle
the
ernment
1953
Federal
sharply following the end of
the post-Korean defense
and
the
all
kinds
of
military
the
1953
the last
and
annual
rity
build-up
filling of pipelines with
Between
the
Gov¬
expednitures fell rapidly.
expenditures were cut¬
Military
back
of
equipment.
second
expenditures
national
by almost
$54.3 billion to
(from
billion). This
posed
problem of economic
rious
a
se¬
read¬
that
gue
our
cannot con¬
for long. They say that sales
been
kept high by "soft"
tinue
credit
which
and
terms,
that consumer
home mortgage credit is now
stretched to the limit.
A sharp
and
letdown
ably
and
home
in
duction
auto
pro¬
impends, which will prob¬
by
the
1956.
If it does not do so
of
end
So
economy
of activity
lower level
a
by year-end.
in
whole
the
carry
down to
then it will
reasoning of
1955,
the
runs
the pessimists.
I
secu¬
fell
$14 billion
$40.5
of
quarter of 1954
of
rate
quarter
it
reject this reasoning because
strong demand for
is
autos
The
with the facts.
is at odds
homes'and
new
mainly the product of
First, high and Rising
two factors:
for
filed
and
commitments
FHA
VA
that
of
veterans
have
II
War
World
July,
1957, to
exercise their rights to. favorable
only
until
GI
mortgage
of
them
loans,
have
for
rush
The
millions
and
not
GI
yet
done
will
loans
so.
con¬
It
billion
to
inventory de¬
an
in the
third quarter of 1954. Fortunately,
the confidence of people in the
than
more
will
consumers
continue
to
ex¬
prising if total consumer expendi¬
tures climbed to about $245 bil¬
lion
in
1955
as
billion
$2.32
in
whole,
a
1954,
<'
5%.
around
against
of
rise
a
future
remained
unshaken.
This
r
automobiles.
the new
and
seizing
ainbo w-hued
automobiles
confidence, together with skillful
production
management by the Federal Gov¬
the
ernment
morrow" simply because
of
its
fiscal,
monetary,
and
other
responsibilities, con¬
verted an
ominous setback, into
renewed
economic
growth.
In all probability the
pha^e of
reduction
in
Federal national
se¬
curity expenditures is about over,
and
the
year
vista
two
or
spending
at
ahead
is
for the
next
plateau of such
a
around
the
current
annual rate of
$40 billion. This is
the implication of the President's
budget recommendations last Jan¬
and recent Congressional
uary
tions.
The
parently
United
States
reached
a
If
nomic
18
deflation
during
the
past
months has spent its force.
governments,
on
will
to
continue
idly.
State
ments
spent
the
rise
and
much
as
quite
local
$27.5
ing
the
calendar
during 1955 they
contrary,
year
may
$30 billion.
rap¬
govern¬
billion
dur¬
1954;
spend
They
as
are ^en¬
gaged in financing vast public im¬
provements
—
building
schools,
roads, hospitals and welfare insti¬
tutions, installing streets, lighting,
water and
sanitary installations,
throwing great superhighways
across
the country, and otherwise
they, of¬
and
con¬
confined
means
no
houses.
other
autos -and
to
It is spread broadly
durables, soft goods,
services
and
though
marriages
will
the
of
number
fall be¬
low 600,000 a year during the next
lew years, more than four million
probably
being born each year,
their
families to
need
are
larger
homes.
Present
American
housing is in large part obsolete
in., design.
dwellings
More
are
than
million
25
than
more
now
30
old, compared with only 15
years
1940.
If
peopie
insist
signs
they
beginning to do so—then
housing
are
the long-term market for
will continue to be large.
Although
mortgage
ment
not
we
outstanding
and
debt
home
instal¬
consumer
has
been
rising, it is
presently at a danger point, if
judge this by the relation of
its amount to
incomes
or
consumer
disposable
by its
quality as re¬
defaults or reposses¬
vealed
by
sions.
Taken
in
the
aggregate,
services which have arisen out of
homes
postwar growth of
the U. S. population and the con¬
struction of 10 million new homes.
The backlog of demands for state
and local public works of all kinds
has been estimated at more tnan
What
About
are
Mortgage
45%
of
which
100
free
of
debt amounts
the
there
debtedness.
gest
held
value
is
of
inventories,
The
outlook.
de¬
plant,
most
and
impor¬
tant
economic
some
and
that
forces
will
of
First
tax
all,
one
considerable
with
reduction
The political pressure
a Presidential
confidence.
firms
to.-
purchase
plante and
equipment,
Early this year, the
expectation was almost universal
a
mOder- '*
equipment,
has caused
American
about
homes
surveys
that only four out of
indebted
doing
homes have
on
in¬
sug¬
every
obliga¬
so are
is by no means cer¬
prosperity is to be sus¬
result
If
tained, without price inflation and
in a free economy, people must
continue
to
behave
confidently
meht,
k
tions
now
,$4.5 "billion
a
govern-
founda¬
spending
year
around
scientific
on
research and development. This is
continually producing new mate¬
rials,,'^ processes,,
and
products
and government must
exercise a wise and
but warily,
continue
to
.
control of its fiscal and
vigilant
We
responsibilities.
monetary
conquered the busi¬
have not yet
cycle.
ness
The
S.
U.
could con¬
economy
ceivably be subjected to inflation¬
ary
such
war, a
to
external
as
such
1
!
financial
severe
Western
in
collapse
Any
Europe.
)
of dis¬
direction
a
or
economic
or
borders,
our
sudden internation-
the
in
move
by
shocks
deflationary
or
events
would
event
difficult problems of adjust¬
pose
ment,
post-Kotean
did the
as
re¬
military expenditures.
in
duction
likely.
None of them now appears
Potential Dangers in Our
Situation
Internal
There
in
gers
which
guard.
must
we
dan¬
situation
internal
our
against
potential
also
are
into
the
account
one
that
fact
;
econ¬
V \v S A
yvwv.
corporate profits taxes, bring¬
ing the Federal budget into bal¬
ance—at least on a cash basisand
wax
hot
over
or
Democrats deserve
credit, but tax reduction we shall
undoubtedly have. This would, of
course; add to spendable funds in
publicans
consumers
and busi¬
120
10-year program involving Fed¬
eral outlays averaging $3 billion
a
a
year
and financed bv b^nds is¬
sued
by
thority
National Highway Au-.
—
as'suggested
by tne
•
j
business
of
on
Nsw York, at
3D, 1955.
June
the
of
State
York.
New
'
..
ASSETS
with
other
institutions,
in¬
balances
Cash,
banking
.■
'
»
reserve
balances,
cash items in process.
cluding
and
Government
States
and
direct
obligations,
431,333.32
-—
61,000.00
stocks
Furniture and
Other
$1,619,993.34
J..————
collection-
of
United
394,934.22
fixtures
689,145.41
assets.—
ASSETS—-
TOTAL
S3 195.406.29
-
LIABILITIES
Demand
of
indi¬
nartnerships, and
deposits
625,439.30
corporations
TOTAL
DEPOSITS-- $325,439.30
Other
1,371,101.35
liabilitiess
a
President—I
do
venture
not
LIABILITIES
TOTAL
(not
subordinated
including
to
$1,936,540.65
obligations shown below >
The
say.-
^
XS
published in accordance with a call made
by the Superintendent of Banks pursuant
to
the provisions of the Banking Law of
guaranteed
will witness the initiation of
SK
Broadway, New York.
close
the
Corporate
Secondly, it is quite likely that
1956
of
the form
of tax reduction and whether Re¬
v.'":;'
4
NJ.
WW
revenues
ments will
OF
TDK;
CORPORATION, TRUST'
expansion is, through higher
from personal
income
omic
CONDITION
OF
REPORT
takes
When
viduals.
Business,
universities, and
>
I think the chances of
good; but this felici¬
next year.
economic
irrespective of
plan expenditures the National Highway Program
on plant and equipment this year
recommended by the President to
about 5% higher than those made- the Congress last January. Wheth¬
in 1954, according to the most re¬ er or not it will take the form of
surveys.
assumes, *rA
growth, avoiding both inflationary
boom
and
recession during the
will be almost irre¬
businessmen to
cent
It
tacitly, that we shall be able to
keep the American economy on
the
road
of
steady
economic
for tax reduction in
reduction in capital spending
business.
However5} the sus¬
tained strength of consumer de¬ the hands of
mand, combined with the steady ness firms.
by
optimistic.
is
given
i
prognosis I have
The economic
forecast
may
single change, in the business
outlook has been the recent up¬ it is hard to see how some tax re¬
will be avoided." Argu¬
ward revision of plans by businessr duction
CAPITAL
ACCOUNTS
$5°0.000.00
325,000.00
373,865.64
t
Capital
Surplus fund
Undivided
profits!)
equipment.
Capital expenditures, next decade appears to be gener¬
business
firms
are
"high-t ally accepted. Such expenditures
powered" dollars, generating more would add something to aggregate
by
final demand for goods and serv¬
ices than dollars spent on consum¬
er
goods.'
Then, account must be taken of
demand
if
by
financed
current
by highway bonds.
Thirdly, one mav
considerable
tories.
count
tent of
shift
first
made
or
to
a
group
the
ex¬
of
in¬
moderate
accumulation
quarter
this
during the
With
year.
rising prices for steel, cop¬
other primary raw mate¬
per, and
rials in
other
as
to
$3.7, billion during 1954. A
was
ventory
firm
inventories
prospect,
round
labor
costs
tion,
it
of
in
and
stiff
process
appears
with
an¬
increases
in
of negotia¬
probable
that
businesses will begin to anticipate
state
ing
and
1956
assurance
with
local
TOTAL
a
order
of two
of business plant and equip¬
plans for 1956 suggest that
the current rising trend of capital
ment
spending will carry through next
Businesses reported that
present plans for 1956 con¬
template capital spending only
3% less than in 1955. Experience
AND
ACCOUNTS
stock
$3 195.406.29
—
consists
par
value
capital
with
total
of
of
5500,000.00.
MEMORANDA
Assets pledged or assigned
liabilities
secure
other
are
to
for
and
$105,333.32
purposes
Securities
Fourthly, the McGraw-Hill sur¬
veys
81,193,865.64
institution's
common
or
year.
AC¬
LIABILITIES
CAPITAL
a
of the pace of
expenditures dur¬
of the
three billions
upon
CAPITAL
COUNTS
tThis
further quickening
Business firms
depleted
TOTAL
taxes; and even more if financed
probable shifts in business inven¬
debt.
to
outstanding
Recent
'
'it
armament,
1956?
1955
beyond
!>'•
■or.:
demands.
al
principle of expansion
which render present machinery, of Federal expenditures on our
upon homes as modern and well-'
and equipment obsolete and-gen¬
major national highway network
equipped as the automobiles they
erate demands for new plant and
by $2 to $3 billion a year over the
drive—and there are some
in
home mortgage credit is not over¬
extended.
Half of all American
amazing
taxes,
Looking
obsolescence of existing plant and
well.
as
Even
over
and to make credit
readily
available,
would
combine to produce a strong eco¬
duce
considerations.
ate
Moreover, the rise
expenditures is by
consumer
catching up with an enormous
backlog of demands for public
the
ness
for
business
to
in
million
Expenditures of state and local
turn
now
to afford them.
babies
of security expenditures in
technological age of "cold" war.
so, an important factor of eco¬
comfort
more
of .To¬
Homes
of
more
sistible,
that 1955 .would witness
causing
rock-bottom
purchasing
and
venience, and they feel welL able
ac¬
level
a
fer much
ap¬
has
lines
"Ranch
new
off
opportunities
the
enlarge
private enterprise, to revise the
tax system so as to offer stronger
incentives to
investment, to re¬
election year
>
.
equipment, a peculiarly sensitive
and strategic element in the busi¬
are
markets for our products
probably buttress domestic
will
their spendings for appli¬ probably come into play next
with a constructive effect
ances, furniture, soft goods and; year,
upon the business, situation.
services.
It would not be
sur¬
mand
homes
meas¬
of
foreign investment and
export
pand
ly accelerated the obsolescence of
Americans
to
million
1.3
passenger cars, which have great¬
existing
the
by his Administration
taken
into
homes, an estimate which contem¬ 1956, one's vision is less distinct.
plates a moderate fall-off from He would be rash, indeed, who
present hectic activity during the ventured to put dollar signs be¬
second half of this year.
Mean¬ side economic prophecies so far
Yet I think
I perceive
while, it may be expected 'that ahead.
and
cars
We
widelyj.'dis-
incomes,
The Presi¬
dent then forecast that
of around seven million passenger
mechanical features of homes end
pletion rate of $4.8 billion
January by President
Eisenhower in his "Economic Re¬
last
made
requires no stretch of
the imagination to conclude that nomic expansion this year.
1955 will witness the production
tinue.
inventory
$5.4
that
mean
An enlargement
Worxd in 1956.
American
tain.
Plant and Equipment Outlays
of
would
look
prolongation of the economic
a
tous
sharp techno¬
logical advances in the design and
rate
If this is realized, it
1955 would set
rising trend.
than the
capital spending
expansion of Europe and the Free
persisting
Yet the basic forces an all-time record of production,
demand—urgent wants exceeding the previous peak year
ample incomes- 1953 by about 3%, and exceeding
continue
to
be
strong, and the 1954 by more than 5%. It would
reduction should not be large. The mean that economic developments
number
of
applications already had borne out the
predictions
tributed; secondly,
consumer
for
in¬
and
with
justment, especially when it was
accompanied by a concurrent shift
by business enterprises from an
accumulation
for
ures
and
What is the olutlook for govern¬
demands?
Beginning in
is
outlook
so,
Finally, it is reasonable to
commercial
as
of 1955. It should not be forgotten
by business enter¬
prises, and demand by consumers
mental
far
for action ap¬
1956 will witness
year
If
current year.
dustrial construction is concerned,
lion, and new autos were rolling
off production lines at an annual
rate of 8.8 million. Pessimists ar¬
cal— demand
households.
So
as
larger
current demand.
port" to the Congress.
production,
demand by gov¬
our economy;
to
appraisals is so large as to
ensure
a
prolongation of high
home-building activity to the end
ernments—Federal, state, and lo¬
by
goods
proaches.
accumulation may be
during the last half of
1955, at least of the order of $2
billion. This would, of course, acid
In the first quarter
of
1955 new houses were being
built at an annual rate of 1.5 mil¬
tic among us.
present economic
expansion is based largely upon
abnormally high auto and home
the
made
expected
the
combined
the
inventory
of effective
the factors which could drive the
car
farther into the future. If so, some
production.
for
outlook
the
to
turn
us
always fallen short of final plans,
and
that
upward revisions are
somewhat
inventories
for
needs
two years — to adjust the
strength during the balance of
downpayment and payout periods
this year.
of
FHA-insured
and
VA-guarWe are now in .a position to
anteed loans in the interest of
sum
up these observations.
The
stable
economic
growth. If we
prospect is that gross national
take these steps, we shall have
production will amount to $375
little reason to feel nervous about
billion or more during the current
the future of the home-building
year, with the next six
months
industry.
witnessing a further expansion in
In summary, it appears reason¬
total
demand
at
a
decelerating
able
to
expect
some
let-down rate, and the year ending on a
past
dring the balance of this year in
the rate of home and automobile
Consumer
Expenditures
realizing it will be
clearly apprehend
if
greater
alternatives.
Taking
state
be
the powers—for which he
asked Congress
during the
given
$200 billion by the Department of
Commerce.
We shall be working
it off for
President should
The
tinued.
discon¬
be
should
and
practice
of the American econ¬
omy
from the mild set-back of
1953-54 is complete. The interest¬
ing
this,
quickly be said that 100% loans
are
a
denial of good financial
Economic Barometer
recovery
more
appraised value. Having
however, it should
their
of
or
after
serves
as
above
shown
deduction
of
re¬
88.56
of
Treasurer of
the above-named institution, herebv certify
I,
CHARLES
J.
SKINNER.
that the above statement is truo to
of
my
the best
and belief.
knowledge
CHARLES J. SKINNER
year.
their
shows that
preliminary plans have
Correct—Attest:
OAKLEIGH
RALHP
L.
THORNZ]
CREWS
GEORGE
F.
LePAGE
\ Directors
i
>
-<■
Volume 182
Most
of
Number 5446
important
the
are
over-confidence
tion,
the
on
is
specula¬
hazards
of
economic
an
either
sion
tain
fields.
cles
to
As
successive
expansion
"New
and
Era"
terrupted
popular
prosperity
in
can
through
peace
not
are
their mistakes.
ation
since
has
A
such
without
new
there
maturity
to
it pro-e¬
-
duced.
Over-confidence could lead to
speculative
build-up
inventories,
or
a
business
of
to excessive
of certain kinds, or to a
runaway
stock market.
So far,
expansion has not been
businessmen
If
start
could
requirements would curb
pear
to be dangerously high when
bona
alone
a
present prices.
this
All
that
means
Board
serve
delicate
confronts
—
Re¬
very
a
monetary
of
problem
mone¬
our
Federal
authority—the
tary
management during the next year
or
the Board must
If possible,
so.
steer
careful
a
course
between
which would feed
an
inflationary boom and credit
stringency, which would restrain
desirable ' economic
It
growth.
must try to avoid a condition in
monetary
ease
which credit is
cheap and read¬
so
available as
to
encourage
rapid
inventory accumulation,
stock speculation, or reckless con¬
struction.
At the same time, it
must be
careful to prevent the
ily
money" conditions which
could quickly choke off the sus¬
tainable growth of the economy.
"tight
It
face
would
a
difficult
most
problem, if as in the late '20s,
a
speculative boom in securities
developed in the face of rather
restrictive credit policies and stabTe commodity prices.
H
face
b
o
s o n
'
s
It
mav
choice,
restore
tween
a
proper
relation
be¬
A
credit policy which prevented any
price
inflation
stances
might
rPCPc:ci~ri
in
in
these
easily
circum¬
produce
production
and
a
em-
employment.
In
or
rule
tve
deflationary
of
policy
•
most
of
inflationary
tendencies,
that
the
the
Federal
worse.
memory
some
lamentable
the matter of
may
Now
light of all this, it is obvious enough that
States, and for that matter any of the other
Western powers, would be more than foolish to take any
unsecured notes from Russia or China, or from any of
the United
We
in
its
of
the
must suppose, that no
one
made
sort
and
thumb of Russia
under the
later
Hitler
to
the
in
later
the
We
and
to
can hardly believe
China expect such
that, is there nothing that can be offered
nothing that they might consent to
could start the
called,
Any
the part of their adversaries.
on
world
existed
as
more
once
such conditions of international
the road to
on
harmony, if such it can
prior to World War I?
It seems
that there
ought to be. None of the major parties
in this tight world situation is in any real sense a havenot nation. Each should be reasonably well satisfied with
us
the international status quo. At least
not be so earth shaking as
should
World War with atomic weapons
the changes desired
to warrant another
It is hard to
plentiful.
why Russia should be burning with desire to acquire
more
territory. The United States certainly is content
with its boundaries.
China may have some sort of rea¬
see
for
son
"correction"
some
there, but
and
here
boundaries
its
of
lie in other directions where
its real needs
is a great advantage. If doctrinaire Communist
gospel requiring conquest of the world is not already
losing some of its force, we are confident that it will in
For
the
was
custom
war.
of time.
course
Is it not worth the try to see
of Geneva?
Beach,
Joins Straus,
^Special to The
650
KANSAS
of
firm, which is a member of
the Los Angeles Stock Exchange,
are
Colis
Mitchum,
George
E.
McDowell,
&
Chronicle)
James P.
Thomas E.
Sharp have been added to the
staff of Dempsey-Tegeler & Co.,
1000 Locust Street,
members of
the New York and Midwest Stock
Connaughton
Mo.
—
and
Exchanges.,
Tuplin.
The
futility of trying to pacify these aggressors by
finally became apparent. - After Munich "ap¬
peasement" in some quarters at least became a cardinal
sin.
It was not always entirely clear precisely what
given their appetite was merely whetted thereby—and
they had no Scruple about wl^at they would do next.
This was the situation that existed at the outbreak of
World War II. j At that time,, the word applied primarily
to Hitler and his followers.
The war was not long over
before it becarfie clear that Stalin
was
Statement
R
Cash and
and
Loans
Other
TOTAL
vast
land
and
and
Hitler.
worthless.
,
innumerable
people.
Their behavior
in
dealings have been quite typical of Stalin
On the record* their word appears to be
An: iron curtain has descended about them, to
$
i'f
15,63'6»Z16.41
8,190,721.59
12l'22n'e«o"ci
4,250,509.64
—
1.54Z,846.49
Prepaid Expense.
476,854.09
—
$352,327,346.19
-
_
LIABILITIES
Stock
Surplus
Undivided
through the East or not, both Communism and the double
dealing that had been so developed in the West broke
fcrth in the East. Communists in China with the help of
the Russians soon established themselves in control of that
■>- — -
Resources
Capital
Then, whether by deliberate observance of Lenin's
that the Communists would conquer the West
E S
C
Discounts
willing to play the Hitler role. He did so with great profit
to himself and damage to the remainder of the world.
maxim
R
U
—
Accrued
Income
/\
of June 30, 1955
Bonds
Premises Occupied—
Receivable and
Banking
O
Securities
and
Bonds
Other
as
S
Bonds
Municipal
and
State
E
Banks—
from
Due
States
United
quite capable and
Lenin's Maxim
I, OHIO
CINCINN
meaning was to be assigned to the term, but it was evi¬
dent enough that whatever these grasping nations were
$11,875,000.00
11,875,000.00
Value)
—
Profits
for
CAPITAL
DEPOSITS:
U.
S.
Liabilities
Government.
—
—
— -
Includes
$5,957,512.54
ment. which
Section
-
of
trust
\noney
on
48,178.02
—
$352,327,346.19
deposit in the Banking
under the provisions of the Banking Law of t h e
is a Preferred Claim against the Assets of
1107.12
Q97
309,^27,316.50
11,7S2,?JJq?
Bank and Savings —
TOTAL
*
3,4b4,yu-2.4i
,ftQ
.
♦Commercial,
Other
3,346,304.26
—
FUNDS——
Dividends, Interest, Taxes, etc
TOTAL
Reserve
Par
($25.00
"
Dempsey-Tegeler
ST. LOUIS,
Mones,
Edward C. ^Sterling, Malcolm C.
Tracy, Gerald Secord, James D.
Cockburn, George E. Jones, Jr.,
Meader Fletcher, Edward J. Spillane,
Alexander C.
McGilvray,
and Ellsworth
Mrs.
Street Building.
(Special to The Financial
W.
Richard
—
has joined the staff
Ninth
2 With
Mones, N. Connor Templeton, Ro¬
land Seidler, Andrew Dunlap, Mr.
Chronicle)
Mo.
Blosser
Straus,
West
20
Blosser
Financial
CITY,
Jeanne Morey
the
Shropshire,
San
Reno, Nevada.
South
Spring
will become a member
of July 21.
Partners in
as
in
Jose,
Salinas and
California, and in
San
Rosa,
Santa
LOS ANGELES, Calif.—Paul J.
Shropshire will acquire member¬
ship in the New York Stock Ex¬
change and Mitchum, Jones
&
Street,
offices
has
firm
be got out
can
Francisco, Sacramento, Lodi, Long
To Be NYSE Member
Templeton,
what
The
Mitchum, Jones Firm
firm
international
such steps.
the Communists and
be
should be made.
war
be almost incredibly naive
us,
either Russia
rulers of
But short of
which
to
seems
peace
stages brought the
.".v-j
breakdown»in
the end of the
near
would, it
credulity
respects the infamous, meetings of
beginning
are
hardly need add,
to consider any
that
more
Meetings 'fat the Summit"
II
lost to sight.
in
concessions
international
absence
else
even
also
production and profits.
agenda, although doubtless Russia would
there, but whatever Russia or anyone
wish, Asia is part and parcel of the existing
world situation, and must not ever be
nation
condemning the world to
to
iidesf0f^^fy'K;/y-'\\'
should
sharply higher labor costs cause
inflationary price movements as
a
result of businessmen's efforts
to
It
On several occasions—
it is hardly necessary to name them—the armed forces
of one nation simply struck at another without prelimi¬
naries of any sort, sometimes at other nations which
presumably were allies in good faith. It became apparent
that in some instances,> at least, it was not only quite
useless to talk with these aggressor countries, but that
it was also rather dangerous since a blow from the be¬
hind at any moment -even .while negotiations were in
process was by. no means an impossibility, v.
in
Justify
can
its
on
like to have them
'Thirties in the hope of satisfying him or of the type made
-
>
Meanwnifef thanks to Hitler in large part, there
Nevertheless, the buyers of many
stocks are
looking a long way
into an uncertain future for the
which
•
phrase. The meeting in Geneva,
scheduled, does not have these Eastern
now
the countries which
proposals and suggestions lacked the most elementary
judged by their relation to pres¬
ent and prospective dividends, in¬
terest rates, or the reproduction
cost of the assets they represent.
returns
vigilance is
again and again and again served notice on the world
that their word was worth exactly nothing.
They have
likewise on more than one occasion shown that their
traders.
the
this sobriety has waned.
prices in general do not ap¬
Stock
eternal
giving away of other peoples property and for
disregard son the part of Stalin of solemn assur¬
ances given, there is little if anything in history to match
that epoch.
It is impossible not to conclude that Stalin
never
had the slightest intention of living up to much
that he promised on these > occasions.
And since those
events, both the Russians and Communist Chinese have
trouble. For a time,
it
appeared that the Fulbright
Committee
inquiry
and
higher
Now,
war,
a
calm
also produce
of
ning
the price of victory.
barefaced
nomic contraction.
exuberance
In
sustaining prosperity, as in win¬
Stalin, ChurchilJ and Roosevelt (later also Truman).
of
Stock market speculation
near
World* War
famous, and in
the
mid-1953,
and
the
stage would be set for a phase of
inventory
liquidation
and eco¬
the
page
Those War
could
rather
quickly
duplicate its top-heavy inventory
margin
enterprising.
everj open violation of pledged word. Then
Hitler who converted undertakings by his
came
And
economy
position
the
and did nothing.
Finally,; Hitler and Stalin—Greek
against Greek in their infamous dealings—carried on the
horrible fashion of the day not only to disregard sacred
gen¬
inventories,
piling
and
on
erally should expect prices to rise
and
ve^y
with
one
spurred on by much inventory ac¬
cumulation.
skillful
undertakings but to enter into agreements with the full
intention iof breaking them when other parties had been
lulled to sleep with them.
con¬
struction
economic
business¬
and
as
country into mere scraps of paper while the Allies looked
experi¬
chastening
comes
obvious and
gener¬
the inhibitions
and
ences
'30s
and
likely to repeat
come
can
is
than an inch long is
likely to overlook the cost of the treachery by aggres¬
sive and unscrupulous nations after World War I. There
was
Japan, of course, which built a huge navy and a
long string of "unsinkable aircraft carriers"—as one of
her military men described the fortified islands so care¬
fully arranged across the Pacific Ocean, much of it in
lived
who
a
It
free economy
and the complacent, just
it can reward with profit the
We See
No
into
economy
But
workers,
eternal "cold wait" if not
realities.
'20s
late
the
adults
as
tainty.
a
of risk and uncer¬
inflict loss upon the
matters
to Stalin
becomes
Americans
by
from first
As
prolonged recession.
Those
economy
always
as
concessions
consequences
the whole
carry
expan¬
widespread
a
investors,
Continued
a
Confidence suddenly collapses.
spiral oi deflationary
an
avoid
to
us
Churchillian
least
unin¬
and
economic
remember that
Let
after
universal. Then, a minor
disappointment of these rosy ex¬
pectations occurs. There is a rude
to
important
equally
over-confidehce.
the
use
at
China.
nearly
awakening
is
cer¬
belief
endless
of
future
sumers,
are
spreads,
upon
eco¬
difficulty is surmounted,
dissolved,
optimism
doubts
based
Government should do noth¬
ing to impair this confidence, be¬
cause it is soundly based.
Yet it
unwary
economic
current
is
men.
oosta-
one
as
a
con¬
overcome
are
during the upswing,
another
in
over-investment
with
economy
nomic
speculation, producing an unsupportanle structure or values
rasn
which
attitude of confidence in the
phase of over-confidence
a
.nprmally,
increase of 3 to 4% each
business.
Our
and
and
its
act
teaches that prolonged
expansion has often end¬
History
in
Yet
>
grow
money
price level requires a ris¬
ing volume of currency and de¬
mand deposits in banks to trans¬
possible.
is
economic
ed
recession.
to
the
stable
boom somewhat higher than tnose
of
permitting
A growing
year.
inflationary
an
of
means an
ept monetary policy, on the other
hand.
At present, I
would rate
the
that
supply
hand, and of in¬
one
follow
Reserve authorities should
dangers
and
27
(187)
The Commercial and Financial Chronicle
...
Depart¬
S * a t e of Ohio,
the Ban«.
28
July 14, 1955
The Commercial and Financial Chronicle... Thursday,
(188)
Continued
jrom
sign will tend to reduce the neces¬
5
page
sity for process modifications.
Railroad
Coming Changes in Oil Refining
Securities Salesman's Corner
cracking and reforming required
20 years to 25 years to reach an
in 1940.
Although the primary advantage
By JOHN DUTTON
which
ditives has resulted in
apparent saturation point
A Sound Foundation
cracking was the shift-
of thermal
achieved
been
has
proving engine fuels by
level
technical
of
im¬
in
of ad¬
use
increased
an
to
im¬
other important
prove many
effort
per¬
characteristics
formance
40%
Recently I had the opportunity
of a successJul investment firm that has been
the financial page and the securi-
of meeting the head
ties he owns, then that is a different matter.
But if you have this
ing of heavier oils into the gasoline
range,
it
did
contribute
somewhat to the increased octane
specializing primarily in the retail
type of clientele you are not in the
rating of gasoline.
The growth of
catalytic cracking has been somewhat more rapid
than was the
amounts of these special
cracking was its improvement in
octane rating while maintaining
or increasing the shift from heavy
oil to gasoline reached by thermal
cracking.
Now
the
extremely
this
handling
growth of thermal cracking. The
principal advantage of catalytic
by
great interest in the
fractions in fuels
residual
of
use
re¬
railroads'
Recently,
shown
have
fuel
diesel
total
quirements.
about
comprises
use
the
of
intended for medium speed
dieseL
engines. Under conditions of high
railroad
output, many
power
en¬
better
distribution
of
investors.
vate
this
ago
vestor
About
firm
build
way to
began
up
and
come
you
planned
investmentwise
the
do
them.
but
it
workable
has
i
The
first
right
for
employment.
big
salesmen
that
very
this firm
have the
a
a
that
certain
from
even
done
by
find
the
assurance
that
in
where
ity
sized
medium
a
there
commun-
were
many
seems
surpass catalytic - cracking
capacity for gasoline production.
soon
representatives
sales—
excuses if
Maximum utilization of catalvtic
ref0rming and cracking
ers
h
underwritings. Qualsound approach to their
DerhaDs not high
S
octane
an
enough
Wei
We
of 98
can
99
or
„
in
common
,
nicipal bonds, preferreds, and Mu-
man
tual
Ts
Funds, and; they
could
also
•spend time developing the proper
mental attitude toward sound in-
where
procedure, because the
people with whom they were doing business-were receptive to
They
Placed
the
Customer's
■
one
jobs,
■
as
existed six years
have found
and
management
account
to the amount of risk
preferreds,
as¬
hnw
new
^ be d^Xfnf' ?
automotive development dur¬
Joins Easlman, Dillon
Jet
years.
several years after ap¬
in significant numbers,
pearing
have
few
next
only now apparently stabil¬
aviation
gasoline quantity
ized
-
and
trends.
placed
in accounts that could not
Replacement
of the piston-powered automotive
engine by some comparable de¬
obtain
ipaximum benefit from in¬
type
stocks due to
high
velopment, in significant numbers,
is not expected,
at least in the
amount to be invested
stocks.
Growth
come
in
common
stocks
were
taxes, and those who needed
income
also
were
-these lines. Instead of
of
this
clients
that
have
now
their
funds
the
growth-wise
or
an¬
S.
Wm.
said
to
CHICAGO,
Barnhart
.
to
be
such
of
William
—
become
Dillon
hart was formerly
First La Salle Co.
a
S.
associated
&
South La Salle Street.
Co.,
135
in
partner
-
p
I
C
UUStave J.
a
Gustave
J.
Vice-President
the
standards
business,
they
that
foundation of their
that
he
And
in
was
why
dead
shoudn't
he
OChlOSSer
Are
ated
Your
firm
i™*:
sincere
salesman
no
no
real
investment advisor should
the
for
one
of
his
valuable
most
moment
clients
Go
asset.
is
that
his
slowly,
engine
prop-
horse-
has been brought about, in
power
part,
in
through
"improved
breath-
ing"; i.e., by increasing induction-
Union
Secu-
years
of age.
Schlosser
with
Union
To
date this difficulty has
offset
by
associ-
Securities
Corwas
a
of
automatic
more
If recent
filiation
with
them.
He
became
volatile
front
in
front
-
end
of
the
firm
Jan.
1,
and
up
if
mind
your
there is
decisively
doubt
a
as
to
Mr- Schlosser began his
career
ln
nuroose^s^uld
be
amnZ/nm
ca^fyt?c-rgS
«Joline
.
if
course,
you
are
special-
ading in speculative stocks, if
have
you
clients
have
to
that
cater
customer that
he can
bfe" developed to prevent rusting
E. A. Purcell & Co.
„
.
is
want
to
not
you
action, if
the
type of
happy unless
get an emotional jag out of
He
be.T
,.
was
an
,
,
active member of
curity Traders Association
°f New York.
finishing methods
amount
the type and
or
antioxidant
of
three
grandchild.
children
and
one
erational
additives.
Automobile developments, which,
trends,
gasoline-refining
development of the gas
are
turbine and
methods of intro¬
new
ducing fuel into spark-ignition en¬
gines. The automotive gas turbine
is
not
likely
to be a significant
factor in fuel requirements within
the next five years; even if manu¬
facturers were tooling up now to
produce
mass
automotive
an
diesel
gas
total.- This
situation
become quite
Should automotive gas tur¬
stage,
balance
quantity
pro¬
refinery product
would
edly.
The
methods
engines,
cylinder
expected
ciently to
fluence
in
mark¬
development of
introducing fuel
of
automobile
direct
altered
be
such
nomic
injection,
to
significant
exert a
gasoline
on
the next
is
in¬
requirements
five years, and prob¬
ably not in 10
However, if
years.
these technical
efforts
ultimately would alter the octane
trend
and
effect
on
would
have
volatility
The
total
is
its rapid
but
demand
not
aboue 20%
mand
trends
for
shown in
diesel
heating
railroads
is
slowly
1946
Fig.
major end
United
residual-fuel
common
end
of
search
which
has
This
toward
been
in
in
expanded
and
reduce
surface
one
of
ignition.
the
The
storage,
causes
of
success
sources
demand of residual fuels will
the
Much
use
cracked
of
The
gravity
will
in¬
present
be
ranges.
made
of
stripping for straight-run
vacuum
and
higher
wider
of
residua,
and
coking
will
types
new
become
popular.
inorganic constituents which
most residual fuels
accompany
ac¬
search is very active in
to
has
effects.
ful
attempting
inorganic compo¬
lead
Moderate
efforts
these
to
tems
r°-
success
Should dual-fuel
provide
maximum
in
undoubtedly would
types of refinery
new
operations.
are
of
the
remove
nents or to neutralize their harm¬
the
sys¬
solution
utilization
of
to
residual
cbmponents in diesel engines, the
compatibility characteristics of
residuals upon mixing with distil¬
moti¬
will
lates
may be
the
become
composition
insure
to
important.
It
found necessary to restrict
influence
on
segregation
nents.
■
could
residual
fuels
and
have
this
great
refinery handling and
of
residual
compo¬
a
■
,
Other
of additives
of
compatibility,
development
Products
Processes for the reduction of sul¬
Kerosine, lubricating
oil
and
grease,
liquefied petroleum gas,
asphalt, and coke are very impor¬
fur
tant
diesel
fuels
distillate
new
in
or
broader
treating
gen
use
of
methods.
premium diesel fuels will
availability
during
will first
as
The gradual decline in percent¬
age
improvements
use
en¬
of energy.
This will be obtained either
an
the
this and the ship-pronulsion
supplement fossil fuels
ing cracked stocks and of equal or
better quality
than straight-run
refined products soon will be pos¬
by
is
in
and will probably
years,
fields that atomic energy
catalytically cracked distillates.
sible.
20%
begins to become significant
the power-generating field. It
is in
successful
success
additional
10
utilities
the
increase
ergy
extensive research directed
vated
by
to
increase further before atomic
cata-
in
overcoming the performance
shortcomings of these petroleum
fractions.
fuel
next
gasoline,
result
a
by the amount; of im¬
The requirements for resi¬
the
of
components
as
the
U.1 S.
on.
culties in burning residuals in gas
turbines
or
diesel engines.
Re¬
containing
use
demand
refineries
ports.
yields trends are secondary to
quality and composition changes.
in
of the
exceeds
count for the main technical diffi¬
growth
case
fuels
the?
of
demand
which
States
shown in
some
Fig..7 also shows
uses.
residual fuel
total
pat¬
cracked
with
along
signifi¬
are
are
railroad
will follow
the
7,
are
largely complete, and
in
statistics
These trends
units
uses
As
refineries
(the earliest postwar period
more
future trends for all distillate"
tern.
S.
will be 13% of the total petroleum
demand
on
refineries.'. This/ is 1
about half of the percentage^of-
The
fuels
and
normal
have
50%, residual
for shifting heavier oils
Dieselization
a
will
use
increased by almost
demand on U.
fuel
into
rather
ice
gums
although
1965,
By
processes
for the two major
fuel.
in
continue
to
distillate
uses—space
reduction
yield of residual fuels from crude
will continue, but at a slower pace.
Fig. 6, which also shows
the trends
Fuels
rapid
past
be accomplished by
refineries.
S.
that
burn lower
utilization
of total petroleum de¬
U.
on
found
can
distillate
for
expected
increase
sup¬
an eco¬
creased
rise of the past 10 years,
will
is
it
in
on
probably
Distillates
fuels
if
Residual
The
marked
a
requirements.
encounter
cost fuels.
expected
suffi¬
op¬
ex¬
probability
will
locomotives
dual
also
advance
the
difficulty
basis
diesel
into
by
is
planting diesel engines
new
as
or
can
we
interesting result of
turbines
greater
even
the
reach
duction
not
could, how¬
different by
duce
of
re¬
requirements to de¬
use of residual1 fuel
An
cant).
few years, partly as a
carburetors, retard devel-
present
the
increases.
the road by 1960 would consti¬
tute a minor precentage of
the
on
throttle body
opment
fuel
as
for'which
retor
jn
ex¬
pect the current trends in railroad
crease
future
on
ence
show
gumming, re¬
formation in wet fuels
If
difficulties,
if successful, could have an influ¬
of fuel systems, eliminate carbu-
an£j
Mr. Schlosser is survived by his
wife,
forth
in
in this manThe supply of butanes which
before
excessive maintenance costs
Production of diesel fuels contain¬
the
and thin.
bring
volatility of gasolines
1918 wlth tbe Bankers Trust P"rP°se shoald be ample, from
Company. From 1935 to 1937 he
and
r>?oce^es °"
soundness of any issue you are was with Harnman Ripley & Co.,acatalyt^ roim»ng processes.
going to offer to your customers, Incorporated and from December,
nprfnrman<S rha^tpr6
pass it by. That is, if you want to
1937» to February, 1941, with L. fl"e Perf?rn\aiice characterbuild the kind of a business that -H. Rand & Co.
From February,
FffeSfve^ddititefhaw
will stick with you through thick
i941» to April, 1942, he was with .
? ectrve additives have
make
efforts
ner.
officer
1955.
.
and
a
standpoint.
to alter either gasoline
necessary
Diesel
improvements
pressure
attractive.
be
situation
lytically
automobile fuel handling systems
ca.n be. extended further so as to
mi™1™26 vapor-lock difficulties,
vapor
will
gas
A
over
longer periods.
desirable solution is the
of fuels with
of residual components
that
use
chokes
more
ends.
became
operation
been
bond trader durinS his entire af~ U Wil1 be Possible to raise the
an
forget
welfare
ever
of
poration in May, 1942, and
Fortune
No
51
was
Mr.
Customers
Increase
also
aeteristics of present automobiles,
Corporation,
New
York
City, passed away July 8 following a heart attack. Mr. Schlosser
this way?
Your
vapor
are
cold-starting and warm-up char-
LI
rities
quality
example,
system capacity. This engine modi-
„
Schlosser, Assistant
character that it would fit in with
made the
gaso¬
up
important performance
very
erties.
Mr. Barn-
make
fication has considerably worsened
issue, or underwriting in
which they might take an interhave
111.
has
with Eastman,
any new
est, would
Octane
Volatility and
for
pressure,
that
me
volume.
which
line quality.
head of this firm
earnest.
gasoline
the factors
Barnhart
(Specixl to The Financial Cimonicle)
At times, this meant passing up
an immediate commission for the
larger good of the client. In return, the better results achieved
brought more clients, and greater
loyalty of the original customers,
I was very certain that when the
complexity, as
and special
number, while a most important
gasoline property, is only one of
ticipated.
feel
manpower
creased
so
income-
be
other factors will
refinery
as
from
gum
equipment
requirements,
even
though they do not bring forth in¬
firm's
can
number of
significance
successful,
increase
assurance
results
future.
well
se¬
invested
are
maximum
wise and
this
of
many
A
collection
a
that, haphazardly
with little or no plan
purpose/
that
along
and
lected,
immediate
more
guided
quality
conditions
use
this
1965.
engines,
operating
tensive
turbine, the number of these units
J?th^
must
means
developed for improving com¬
bustion under idling and low load
specifications based
bines
ing 'the
and
to
performance
-
existing
found
quite possible that it will be
be superseded by some
new
the
and
etc.,
T//fnlnhthU
pTooesses wm
that
is
that this upward octane trend will
William S. Barnhart
a§
it could
the percentage that should
be kept in reserve type investments such as governments, high
Perhans
a
However,
be
meaningful laboratory tests,
ever,
#ut./ne customer iirst.
sume,
grade
*°re
reverse or
analyzed
was
no«ihle
J?fl+ octane ^vfls. beyond .the
result of this progres-
a
Welfare First ALWAYS
Each
H
P°w considered possible. Fernaps
.
men
opportunities,
:.
-
only
Capable
ago.
-
result they now have
in cities within the state
a
offices
vestment
: ;
in the organization.
that
been
research
upon
refin-
bv
will permit production of gasf hi^h octane value but
?arkll mak6Sa TfS f°,r thiS fo^ average premium grade by
ttZ Jr3/STH°JanZ,y Zltf t'"". .^eps good reliable salesmen utilizing *aJytic cracking and
f
™eL'°UJltTC'a ~ working for for growth for every reformf to the {ul]est extent
them, and presents
good
stocks, mu- opportunities
n
ize
As
the
of
have
little
it
may
materials.
specifications
methods
test
catalytic-reforming capacity
ity and
a
It
residuum.
controlled,
apparent
Some
content
-
improved
pations and
re-
needed.
probable that, by upgrading both
straight-run and cracked stocks,
hf,?i '°CaT°hn, f°h otheVh tyPh ?f there are with his firm's particiU."lelwh,en I16 ca"n<?t
business. They began their busig0 along
ness
is
gum
two
three years ago.
become
gines will operate reasonably sat¬
isfactorily
on
fuels
containing
understanding of the im¬ search efforts are successful in
portance of gasoline gum content adapting residual fuels to railroad
on
fuel performance and storage diesel engines without incurring
have
make
to
has
It
service
or
involved in
more
accurately
but
connected with
are
is evident, although it
hardly a significant factor
minor,
forming
and
have
to
re-
refiner
special chemicals and
blending into gasolines relatively
was
that,
only
makes it unnecessary for a
man
catalytic
of
the
future
expect to be
can
the
Not
first- Such a relationship between
^rm
expansion
rapid
they are backed up 100% when
they place the customer's welfare
mere
to
was
of success, and
record
Tii
thing
this organization
The firm I have disexists, it has a fine
out
right
were
this
in
new
set
like
w
customers
nothing
here
cussed
I
r
so
job
been
procedure
and the day
may wonder
much time on
you
I am quite
during periods
0f bear markets that the people
who work there will have steady
then
possible
the start.
e
a
to
and
best
is
little piece.
of
This may sound
order
cap-
undertook
They
"There
were
program
when
wasted
such customers.
the needs of each person
measure
X
will
why
clientele of in-
a
business
investment
years
small
a
increasing their
investments.
th
pri-
six
in
obtaining income from
diversified,
to
to
type individuals, who
interested in
ital
securities
the
In
means.
some
from
increase
in
the
use
and
M
engine
,
M
for
i
<•
The
percentage
these
products
are
shown in
The demand for kerosine is
ex¬
pected to level out at 350,000 bar-
deit
minor.
and
Fig. 8.
of fuel additives,
improved
are
demand
related to total petroleum demand
better lubricants, improved metal¬
lurgy,
volumes
trends of
result of the
of byproduct hydro¬
catalytic
reformers.
However, the
petroleum products, although
their
next
*
•.
1
lr
' <
*.
'
t
Number 5446... The Commercial and Financial Chronicle
Volume 182
rels
the
daily for several years, but
yield will drop to less than
This demand is 10 times that
4%.
of
improved lubricating-oil addi¬
perhaps in the future, by
tives or,
asphalt will show a substantial in¬
crease, largely as a result of the
1915, a time when kerosine was
considered a major product. Even
oils.
new types of lubricating ambitious highway building pro¬
Thus, the fuel-sulfur prob-. gram planned in this country.
lem
mentioned
ifi commercial airlines select kero¬
solved
of
sine
fuel
as
future jet trans¬
for
the effect
ports,
demand will
on
not be
great. No substantial qual¬
ity changes in kerosine are antici¬
pated.
ih
greases
lubricating oils
will increase moder¬
ately, but will show
a
slowly de¬
creasing percentage yield because
of the effect of mechanical
design
improvements in the mechanisms
using them.
Overshadowing these
before
be
can
large measure by use
the proper engine lubricating
oils, although it is expected that
engine builders will recognize and
avail
a
themselves
of
means
The demand for
and
entirely
of
lem.
of
mechanical
ameliorating the
prob¬
The use of addities in lubri¬
cating
oils
economical
expensive
is
probably
than
the
more
of
use
new,
for removing
processes
Specifications for paving asphalts
will
probably
undergo
many
changes as the result of extensive
Synthetic
even
is
now
de¬
fining more precisely the factors
important to asphalt quality. These
specification
changes
will
un¬
doubtedly result in modifications
to
preset manufacturing proc¬
esses, but it is too early to pre¬
dict what these changes will be.
A moderate increase in demand
lubricant
develop¬
not expected to have a
are
which
research
sulfur in fuels.
ments
for
petroleum)
based
on:
coke
marked effect
SDecial lubricant applications will
occur
materials
require
will occur,
outlet for in¬
its usual
duction furnace
rapid advance
in quality levels attained through
the use of special compounding
electrodes.
Con¬
enter the
trends
is the
very
and
additives.'
quality ~ improvements
tinue to advance at least
advances
These
will
as
con¬
fast
as
in
engine design.
The refiner, therefore, will find it
occur
necessary to handle - an increasing
number of special compounding
of
materials.
additive
and
viscosity
oils
for
biles
index
r
The
use
improvers
in
other .than automo¬
uses
-
derived
lubricants.
increasing volume.of
synthetic lubricants, but only in
military applications will this vol¬
an
become
ume
future.
near
The
from
gas
all
for
have
to
Fig. 8 is
refineries
and
sources,
meet
this requirement.
in
pe¬
35%
about
One of the
of
ma¬
if
coke
petroleum
.
should
metallurgical field. How¬
this is not considered prob¬
'i.'
able.
the
special
many
petroleum
products will not be large in com¬
parison with the increases in volume of products utilized for en¬
ergy purposes,
use
It is
possible to control the cor¬
rosive wear of engines by means
of
bring
forecasts
oxidation
forth
product
continuing stream
improvements
and
some entirely new products.
This
specialty field may show a growth
only slightly less spectacular than
that of petrochemicals. *
-
of
the manufacture of
a
Petrochemicals
What
growth
effect
of
the
contained
in
the
Paley
report
indicate
only
approxir
mately 1.3% of total oil and gas
production will be required for
petrochemicals in 1965. Most of
the
hydrocarbonsrequired
petrochemicals
are
propane,
natural
of
crease
gas
and
the
aliphatic
produced will in¬
amount
of
light
hydrocarbons from catalytic procr
esses
will
nonfuel products will become; in¬
will be
a
greatly increase, there
negligible effect on the
on
will
are
have
correct, the refiner
greater difficulty
even
meeting the demand for high oc¬
tane aviation and motor gasolines
because of the high octane blend¬
ing values of benzene, toluene, and
the xylenes.
As indicated in Fig.
which show the demand for
hydrocarbons for petrochemicals,
the volume of aromatics will ap¬
proach that of aliphatics in 1965
and will be about 70,000 bbl. per
day.
This is approximately 5%
of
the volume of premium motor
gasoline, and approximately 30%
of the aviation-gasoline demands
forecast
matics
for
1965.
these
If
aro¬
required, they will have
from wider application of
are
to come
the
same processes which will.be
required to meet the high octane
gasoline requirements or may have
to be supplied from coal.
Thus
refiner
the
have
will
to
face problems in the next decade
not unlike those he has faced suc¬
cessfully
the
in
recent
f
p a s
t.
refiner from increased demand for
Changes may occur more rapidly,
will
for
verse.
Unique properties of new
aliphatic hydrocarbons for petro¬
and
chemicals.
will have to accelerate;
be
as
a
material
raw
based
upon
light additive
them
aliphatic hydrocarbons.
The
demand
and
for
yield
which
materials
make
However, according to the Paley
outstanding contributors to
of oiliness, extreme
1955
1935
I960
resist¬
pressure
1955
1950
1945
1940
Petroleum Demand
U.S. Refineries.
n
1
FIG.
gasoline boiling range, will be re¬
quired for petrochemicals. If these
creasingly more complex and di¬
report,
increasing percentage
an
on
FIG.
product and process reseach.
refining
U.S. Refineries.
1965
I960
3
2
2.5
105
the
U.S. Refineries.
on
FIG.
meet
"
1955
Gasoline Demand
I960
but the oil
will
industry
challenge.
I960
*
Petroleum Demand
the
gas
'1950
1945
1940
—
As the amount
1945
1935
for
and butanes and
their homologues.
hydrocarbons,
9,
will
the
rapid
petrochemical in¬
dustry have on the petroleum re¬
finer?
Volume-wise, very little;
forecasts
aromatic
large majority of which are in-the
jor uses of liquefied petroleum
petrochemicals
of bright stocks.
oil thickening,
resistance, and the like
are being explored
continually in
many laboratories. This work will
antirusting,
ance,
ethane,
Whereas the increase in volume
of
.
liquefied
shown
ever,
the
in
<
demand
troleum
will
significant
siderable increase in demand could
is
probable; this will result
in an expanded use of neutral oils
and a corresponding reduction in
the
petroleum
requirements for
on
29
(189)
2.5
105
20.6%
V
". i
2.0
100
2.0
TOTAL
198%
95
M
1.5
OTHER
ot
2
S
5.6%
0^*1 Sjfr'
90
3C
O
«c
■<
PER CENT Of CARS SATISflEO
90
/RAILROADS;
/..
LAST 3 YEAR MODELS OF
1.0
'A
2.8%
PREMIUM USING CARS
w
«/>
65
65
5
eo
60
1945
1950
1955
I960
1965
*1930
Premium Gasoline Octane-Number Trends.
1936
1940
Gasoline Processed by
FIG. 4
1955
1950
1945
I960
1955
1
Thermal and Catalytic Processes.
FIG.
U.S. Demand for Distillate Fuels and Per Cent
.V
of Total Petroleum Demand.
5
FIG.
PER
TOTAL PETROLEUM
1600
DEMANO
200
PER CENT OF TOTAL PETROLEUM
CENT OF TOTAL
PETROLEUM
6
200
1800
1800
2.5
PER CENT OF
DEMAND^
i
1965
DEMANO
1600
^
COKE
ON U.S. REFINERIES
18.0%
TOTAL DOMESTIC
2.0
>*.
1400
>-. 1400
d
DEMANO
KEROSINE
150
ISO
1.3%
o
1200
1200
1000
1000
3
OTHER USES
hi
ce
DEMAND ON
1.5
U.S. REFINERIES
£
a.
<
40
CD
BUNKERS
o
1.0
100
100
L.
LPG
800
800
1.0%
O
«/»
O
o
z
<
600
600
</>
UTILITIES
CO
o
x
,.
400
400
eoo
50
50
x
0.7%
ASPHALTS
0.5
200
^•AROMATjC
4;7r LUBES: AND GREASES
i
Hi
1965
Demand for Residual Fuel Oil.
FIG.
FIG.
7
8
s
'
r
Total U.S. Demand for Minor Products.
Total U.S.
0
(1946
U.S. Petroleum
1955«
;! »
..
,
"■ 1965
"
Demand for Petrochemicals.
FIG.
9
'
f
'
'
'
1
•
The Commercial and Financial Chronicle
'
.
Thursday, July 14, 1955
...
(190)
30
what
every year
Continued from first page
much
how
and
considering the ability of the in¬
sons,
dividual businesses within the in¬
time,
dustry to pay the costs, meet the
them.
of Comments
On Guaranteed Annual Wage
.
*
Brotherhood inaugurated a plan that embraces a
form of annual wage.
We prefer
to refer to
it as a stabilization
program, since it is designed to
guarantee full employment for
In
1950,
our
rather than
worker
the
when
believe
We
he is a
appreciates his
employment,
continuous
citizen and
better
worker
a
security is assured by
his
knows
compen¬
unemployed.
sation while
It is my
place in the community.
when a worker
productiveness is not
that
contention
his
realizes
but by
governed by market prices
benefits
industry
displays,
he
skill
the
only by the quality
not
service, but by the
production as well.
of
quantity of
the law
and demand without
consequence and when production
exceeds the demand, there is no
market.
A
guaranteed annual
provide compen¬
sation for the idle worke'r, but it
does not remove the log jam in
our
plan
broadly hostile to the public good.
In
economic machine.
illustration.
ation.
ect"
is
of his
robbed
an even flow
dise to the markets.
to
public got what it de¬
served in the Ford and GM Set¬
earning
program,
views
on
a
broad
tion
for
for
imposi¬
by
law.
The Procter &
Com¬
Gamble
which
pany,
stabilizing
its
of
sales, rhight
not.
is
risk
too
can
in
a
Frank
Cist
being
dogmatic as to what industrV
"afford." In 1836, if I recall
correctly,
dozen
a
more
or
Nassau
W.
Senior ar¬
gued that a 10% reduction in
daily hours of work (from 11 to 10)
would destroy all profits because
other
also
ways
allowed
the
able
with
terms
autocratic
an
quasi-government of which he is
a
subject,
he invented
so
a
quasiCIO.
government of his own, the
John Q. Citizen in
in
desuetude
his despair and
voted in Big
1932,
profits averaged only 10%. He, of
course, was wholly wrong.
On the other hand the argument
Government
in
the hope it would
solve
of
his
projects
such as
minimum wages, high wage scales,
ments
that
welfare
etc., spread purchasing power can
also be abused.
for
China?
Do we argue this
There
is
really
no
spreading purchas¬
ing power, nor any better welfare
project,
than lowering general
prices to consumers. Then every-
better way of
ment
doctrine
by
of
that
is
it
Secondly,
States
of
cost
mately
O. GLENN
means
is
be
to
Most
Not only will
the
Fordjplan ulti-,,.
borne- by,fthe public"
will necessarily
mand
for
increased
mean
state
unem¬
ployment compensation benefits
for the unorganized workers. This
all adds up to inflation.
it means that the drive
guaranteed annual wage has
Third,
problems for
him. But in spite of our require¬
some
for
more
government
Some
com¬
system—a
for
provided
g u a
annual
their
to
p
1
Where
been
it
a
fluence
they
corrupt
freedom.
company
in
and
But
and
that
subtractive
he .still
a
combination
has
it
of
a
him
Grady
Gammage
protect family in¬
thereby could con¬
ceivably provide stability for con¬
sumer
On
market.
the
other
main-
unions
their
t ain
present
m o nopoly power.
Eventually, it
means
the
Gov¬
Federal
ernment
will
asked
to
guarantee
an
be
annual
wage
I
in all industries.
yields, Statism
steps behind.
it
is only
fe
a
JOHN B. SHOBER
,
814
Glean Saxon
Dr. O.
Nat'l
Bank
©f Commerce
York
Bar,
f
is
commentary
wage
after
It
hand,
GAW
cer¬
much
c
n
o
t
dollar.
not a panacea to eco¬
security. There are many
is
that
e
a
r
c
i
It
efforts
not
rules that can never be
neglected or flouted by
u
o
d ucationa
safely
h
a v
taught th
union
should be of
something definite and ascertain¬
able; as for example, the guar¬
anty attaching in the case of a
leader
and
anybody.
(1) A guarantee
payment of prin¬
interest. The guarantor
to
what extent, if
e
unfortunat
rests on no con¬
railroad bond where one corpora¬
h
in th
purchasin
power of th
on
annual
given
t
r
u
decline
perhap
more
i
n
th
so
d ivi d
u a
members
B.
Shober
o
tion guarantees
the
union
the
John
dangerou
currently prohibit the installation
called
upon
implications of this policy, and i
powerful influence towards kee
ing in motion the vicious cycle
his
of such
credit
is
wages
big
in
was
big union which
tell
can
so
the
as
but upon
Dr.
and
comes
long
sideration of the state of business,
be¬
cause
New
following
disapproval.
sta¬
in¬
velopment
thought and with much diffidence:
it
is an opinion of
unqualified
plished, such
p r o v i s ions
present
an
de¬
eventual
now
guaranteed
doctrine
has
accom¬
tainly
saw
The
the
.
bilizing
is,
East Orange, N. J.
em-
o y e e s
system
Member
wages
nomic
he
a
of
ranteed
system
our
because
time
some
ef¬
It
Building, New Orleans 12, La.
approved,
There is no doubt, as I see th
by both political parties—is a na¬
tural, normal, and healthy thing. stage, that "GAW" is another fir
step towards" further inflation, a
WILLIAM A. ROBERTSON
ultimate higher price level, an
successfully
as
society becomes more com¬
John Q. Citizen threw out
Big Government in the last elec¬
supplement our govern¬
"unemployment
insurance
ment
cannot
adverse
takes to
arily.
plex,
tion
which cannot be treated
one
s u,m m
be
without
so
- however,
the
ficult
do
fects.
de¬
a
will
industries
could afford it.
a
put
the Ford plan into operation in
other mass production industries.
companies
certain
that
to accept the proposal by
monopolies.
Some
few
anion
the
that
;
Haven, Conn.
certain
forced
biles, but Labor will push to
This
feel
I
and
.
committed
University
Yale
New
SAXON
Economics
Professor of
through higher prices for automo¬
for
corporation is an ex¬
timidity and abject
an
arrogant labor union
something to be unquali¬
of
fiedly condemned.
increased unemploy¬
policy of inflation.
irresponsibility has been al¬
lowed to come into vogue, backed
by powerful and sinister political
forces. Once again man stubs his
toe in his peregrinations toward
1929?
any
fear
compensation-^/ payments.
United
of
of
by
hibition
the'vgovernment
That is the FOrd plan*'
panies have
condoning the growth of the
growth of a super-union, the
CIO, to serve as a counterpoise to
the new bigness of industries as
represented here by GM. A labor¬
er can scarcely bargain on favor¬
could
There
least
at
48 States.
our
in
seasonal busi¬
nesses
equivalent greater
"working capi¬
and
giant (sticking to our ex¬
ample for the sake of brevity), the
American citizen inferentially and
highly
more
F. Fox
GM
which
A
tees
also
of
In
guar¬
a
antee
itself.
mean?
light!
been put aside. - Labor will have
bellwether ex¬
its hands full in
extending the
grew—in fact grew
GRADY GAMMAGE
Ford plan to other industries and
into being half our entire auto¬
President, Arizona State College,
I doubt if we see a revival of GAW
motive industry as well as becom¬
Tempe, Arizona
during the next decade.
ing the world's largest industrial
It already has been pointed out
To me, the extension through
enterprise. GM has, in effect, be¬
repeatedly that the subject of the voluntary collective bargaining of
come a
quasi-government within
guaranteed annual wage is a dif¬ a plan whereby Industry under¬
our country,- and with current as¬
ample)
tal"
ford
Morris
than the aggregate
af¬
the floor by
the
really valu¬
adversity?
of
(4) The giving of such guaran¬
inadequate, Labor/and Indus¬
try, through collective bargaining,
have devised a plan t$ strengthen
critical and
a
followed
v ."
was
labor
were
days
of land, prove when'
raged in the years that:
mortgages
the storm
give him and his family a
security.
Jjlecause the
floor provided
-
the
of
sense
an
in
dependable did the guaran¬
tee of titles to real estate, or of
it means that while there
ceiling on a man's ambitions
accomplishments there is a
floor to
moral
Motors (to cite the
in
be able to
humanity
public
work
fine
of
the world today—of the future
But
sets, cash
has done such
furtherance
no
and
crucial role of America in
of the
the years
over
is
politics, and society, and—in view
the
Trust
Laws.
What does the Ford plan
First,
century,
How
and
actually
extended
strengthened those laws.
dangerous departure in the struc¬
ture
of
all
American
business,
Sherman
-
not
19th
able
Admin¬
has
or
"gains," but rather
restrain¬
ing laws called
the Clayton'
Anti
it
mere
no
sentatives
and
is
Re¬
the American way
Eisenhower
The
the face of impend¬
In
ing ruin, directors, managers and
receivers simply cast such obliga¬
tions or guarantees to the winds.
How many guarantees of bonds,
given in the last decade of the
istration, far from repealing any
of the social security legislation,
fact,
a
face
its repre-
Act
This
Pauley
most
by
bankruptcy
avert
to
(no matter how profitable it may
once have been when times were
"good").
"socialism"
ity as part of
whether we bother to
not, that the recent
events in Detroit have represented
is
m o-
nopoly that it
pass
State.
fc.dwm W.
struggling
publican leaders. Today both po¬
litical parties accept social secur¬
and
more
/
1930's following the great depres¬
exaggeration by any means. The
has been
opened for the
Guaranteed Annual Wage. For it
tending
had
away
unprofitable and idle, will
compel any concern to ob¬
such
obligations, if that
concern
is
in
serious
trouble,
sion. That legislative program was
the
Equally true is it that
serve
velt Administration in the middle
one
will."
are
by the Roose¬
way
apathy to¬
ward monopolistic size grew, un¬
der
astute
generalship General
rather a subject
bargaining
than
this
guess
Corporate
bigness
toward
no
and
once
ever
logi¬
life.
century,
guarantee of wages that are
earned, payable to those who
not
Security Pro¬
gram
enacted
dubbed
last
against its will or against the
war
no
Social
the
the
of
man
said, "no Treaty of Guarantee has
ever compelled
a nation to go to
ever
extension
of
of
Customer,
Sir William Vernon Harcourt, the English liberal states¬
m" by
a
pennyworth
(3)
leaders
plan is
a
sense."
"horse
plain
"so-
as
s
but
pence."
(2) A guarantee for the main¬
taining of persons in idleness runs
counter to every consideraaoh of
industry.
cal
Guaran¬
a
1 i
a
The Ford
integrity until we have be¬
come
completely cocooned in a
corpo¬
te
as
Guaranteed Annual Wage, I would
localized
about
of
and
strongly
ra
have
i
many
individual's freedom
the
of
more
felt so
The public once
find
businesses
chip
gressively
American
tlements.
and
c
public itself will have to foot the
bill for Big Labor's shakedown of
Big Business. When business gets
too big labor also gets too big in
order to cope with it. And the
events
thus
inevitably set into
motion, i if unchecked, will pro¬
the
that
feels
observer
This
being at¬
tacked
sights.
can
smaller
but
of
their
we
Annual
teed
Angeles, Calif.
Morgan & Co., Los
CIST
my
Unless
Security Analyst,
Brewster, Mass.
Relative
retrain
to
FOX
F.
MORRIS
problem.
our
FRANK
those who deal in them may
its rewards.
the law of supply and
demand, that will permit industry
to make a fair profit and provide
a
decent
living wage for the
worker would be the long sought
to
Owners of smaller businesses
by
the
Income
Tax
Amendment and one incompletely
such semi-confiscation
of industry
small independent companies.
into
catch-all for
breached
geared to
answer
projects" are subtly be¬
depend
may
dispersion
the
upon
against this sort of confiscation of
minority property has been
survive
survival
national
class to another.
Constitutional protection
the loot'.
of merchan¬
employment
full
A
larceny,
Other
legalized
larceny,
ing used as a sort of
due to the absence of some
of controlled production to
permit
English
in really plain
one
"welfare
power
sort
is
it
"welfare proj¬
That is one
and,
from
The fact remains that the
worker
enter¬
participation without concomitant
responsibility. Many small firms
will disappear and a few lucky
ones will be absorbed by the "bigs,"
this also coming at a time when
any
service.
the fittest
of
be added the further
burden of Big Labor control and
will
prises
a sense
performing
survival
the
heavily
poverty.
But what I am
thinking about is different. I am
thinking
of
"redistribution of
wealth" under the pretext of tax¬
alty is also passed on to the work¬
er despite the fact he is compen¬
not
be
to
sure
are
the whole gamut' of
American industry. To the law of
through
than
As I see it, the pen¬
while
situation
we
two
judgment of the people as to its
expediency and necessity — nor
is
off"
"laid
now
which
degree
a
decisive
felt
taxes for
objects to
us
take
No person
taxing wealth much more
a
the markets.
sated
Let
capital.
on
can't
yet determine, the effects of this
against
<j>f labor and
tics in favor
penalty on industry
shortsightedness by flooding
for
all
in
ed
they hang
can
.
To
dice been load¬
these disputes by poli¬
How far have the
may
it imposes
now?
another question.
still
is
There
long
how
is,
of our century
is how far civilized progress can
supply
wage
Calif.
38,
Angeles
agreement which the Ford
The
would lose ground to
answered question
Industry cannot violate
of
Los
lor
in only
gave
"has
Richard,
PAULEY
W.
Company
reached
with
because it knew it Motor
GM if it had United Auto
Workers
whereby
to endure a strike. Hence, GM is Ford will establish a fund to sup¬
ter
and must then justify themselves, still the determining factor and plement
state
if they can, in spite of this harm. therefore this writer's example.)
unemploy¬
And there is no need to add that If these independents haven't been
ment benefits
monopoly, whether initiated by able to make money in the strong¬ to workers
est automotive year in history as who have been
capital
or
labor
or
both, is
the unemployed to the
that it could prove dis¬
astrous.
that
of those concerned.
EDWIN
they
install bet¬
tools, raise prices and do harm
rest among
extent
workers within
well as other related
affecting
the
economic
as
well being
supporting workers whether
are
working or not, Ford
of
pro¬
work, or of capital to
alarming un¬
it could create
factors
(Incidentally, although Ford was
the first to crack toward the idea
which impair the incentive
labor to do a reasonable day's
of
suspicion and the individual will
question every motive of another.
Should this develop to a great de¬
gree
industry,
ican Motors won't be able to
grams
other arouse
will at some time or
"Welfare"
benefits.
body
personal dignity is cheapened, by
placing him in cold storage until
the time is ripe to utilize his pro¬
ductive ability.
The animal in¬
stinct in the average human being
meet
the standard won by the CIO from
Ford and GM, their leaders say.
of the
needs
Studebaker-Packard and Amer¬
Another Group
for an indefinite period of
is neither "good business,"
nor
"sound judgment."
He wno
mounts a spirited horse without
bit or bridle, assumes an unknow¬
able risk. "He who pays for work
before
it
is
done,"
says
Poor
he must buy
must pay for
cars
he
more
industries
a
part,
industry
where
the
guaranteed
conditions
wage
plan—
its entirety. Each
must examine its own
or
in
position in regard to this matter,
cipal
or
then
knows
to make good, his
pledged., -But a guar¬
payment
antee that extends to the
versus
costs in
which
national economy seems to be
indefinite and un-, extricably entangled.?
ascertainable number of idle per¬
My memory runs back to
o
i
of wages to an
t
I
Number 5446
Volume 132
31
(191)
The Commercial and Financial Chronicle
...
i'O
of
era
it
develop
to
necessary
-
by strong, expanding
industries, featuring high wages
and highly organized labor force.
I believe that organized labor
employment,
to
which
>
of
money
shall
I
a
cents
pay x
work
labor
prejudice,
chasing
without
achievement
earnestly,
its
for
Continued
from
11
page
stabilization fund set up for
continue to increase and the legal
tastic proposal
would receive.
U. S. Congressman from Wisconsin
There
is, to
mind,
my
serious
a
question about the soundness and
of a system of wage
which
leaves
many
efficiency
payments
industrial
the
of
tary
ZABLOCKI
J.
CLEMENT
HON.
have
will
limit
fan¬ porarily raised, just
a
of Congress
be
to
b
d
a n
o
as
the Secre¬
requested
offs
and
re¬
cessions.
The
social
and
economic
of
costs
^he sale of long-term and
ity by
The amount
medium-term bonds.
floating,t
the
of
short-term,
or
un¬
cies of
an
pal
objective has been to relieve
our
Federal Reserve System from
some
and
J. ZaDiocKi
i
are
n
g
extensive. These costs
by the society in gen¬
very
borne
are
htf ul
penetratstudies,
by given communities
and regions in specific cases. They
are
borne to a large extent by
eral,
and
the workers, in terms
of the hard¬
ships they and their families must
activities
its
solely
and make sure
serving
to
devoted
are
the welfare of
hope I have been
you—following fi¬
We are—as I
able
to
nancial
the
to
show
principles which go back
of the Re¬
establishment
public, adapting them, of course,
current conditions.
to
is
What
critics
our
who
say
those
to
answer
than
to
has
is
There
date.
that wage
rity
been
may
given to it
a
possibility
principles
fashioned
growth
First, that the dynamic
of
present
our
of the United States has
sys¬
good money is the best foundation
payments. Certa nly
for economic growth is supported
the progress made in this direc¬
by our economic history.
tion by such firms as the NunnThis year, under a continuation
Bush Shoe Company, Procter &
of
these policies, indices of in¬
Gamble,
and
Hormel,
is
en¬
couraging and informative. There dustrial production, employment,
is also
the
possibility that the retail trade, and other economic
Solution may rest in the develop¬ factors have gone steadily upward
ment of a more scientific — and until the country is once more at
tem of wage
humanitarian
more
system
—
of
payments which would fur¬
ther income and employment sta¬
wage
a
high
of
level
The
prosperity.
both setting new
high records this year and without
bility.
any
price inflation.
Confidence
One
thing appears clear: we
that comes from sound principles
cannot
hope to find a solution
is
proving the best stimulus to
to
this
problem
without
the
wholehearted cooperation of in¬ dynamism that could be found.
al
dustry and labor. There must be
a1 mutual desire on both sides to
the
remedy
but
there
existing
must
also
situation—
be
a
candid
appreciation of each other's prob¬
lems, and of each other's posi¬
tion.
product
are-
Second, let me cite evidence
mind, industry ought to
employment
stabilization
much fervor as labor. On
my
seek
with
in
another area—which I know par¬
ticularly interests you—of the dy¬
namic force of our traditional fi¬
nancial
policies.
we
In the Treasury
have
International
of
business
Office
the
follow
Finance,
which
of
an
is
to
carefully the financial develop¬
hand, labor must be ments abroad as a guide to the
reappraise its current policies of the United States with
policies and demands. Our pres¬ respect to the financial aspects of
ent hourly wage system is tied foreign aid, the lending policies
to the implicit understanding that of
the
International Bank, the
the
as
other
willing
the
For
to
worker
soon
as
will
there is
that
be
no
reason,
laid
off
as
work for him.
in
some
indus¬
icy
has
published
in
- Import
Bank, and the
operations
of the International
Monetary Fund. This U. S. Treas¬
Export
recent
in
terruptedly
People
downward.
combined with new de¬
•
5.
for „annual
.employment
The
period from
1951 on, I
guarantees, may work
would say, could be designated
to the
detriment of both labor
and industry., It.may qrove par- the period' of 'revival of : sound
-n
'
,r-;o
tives,
mands
,
.
>
-
•
and
leaders, and, second, disillusion as
to the comfort and security of life
to
by George M.
of the Rail¬
fn
was
be
to
able
again
are
to
of
to
govern
300,000
hower
provided
neither
that
an
leadership
persons
welfare
of
the
difficul¬
labor
as
of a
popular with
our
self-anointed
its
is
state
voters
evidence
strong
Socialistic
a
nor
"liberals"
as
program
contend.
believe that in the election of
I
officials of any
of the
con¬
election
tional election of President Eisen¬
it
that
having the police power
of a public government.
You may sympathize with the
difficulties
dis¬
firm
my
Ohio
Presi¬
a
board
difficult
very
this
the late Senator Taft and the na¬
before
emergency
the
that
viction
to offer
me
of
contract.
shop
he testified
permit
illusioning. But it is
without
en¬
pro¬
evidence
extensive
impose
as
union
a
organization
can
state
is
labor
organized
Time will not
told the Senators that
of
dential
welfare
socialized
t'i)2
which
labor
notable
a
and labor
virture of labor unions
This
moting.
wanted
Lated
1952 there was
great outpouring
a
couraged to save and to keep their
voluntary organization
savings in their national currency,
instead of seeking refuge in gold
ties
policies and programs and then in
for the first time in 20 years felt
and dollars."
advancing
they
What You Can Do About it
All of this may seem
of
relieved
in
your
close.
the
Treasury
maintaining
problem of
of
the
problem
money
—
A
collection.
tax
Your
former
Or do
be
governed by the
the governed, should
of
consent
Presi¬
tolerated, and that compusory
unionism
should
be
other
forms
Many
of the United
States, is a particularly persua¬
sive advocate of our policies.
universal
my
have
the country's monetary
no
such
power
of
mind,
an
It
problems.
foundation
an
an
attitude
which
heroes and
traditions.
of
are
union
a
closed
an
labor
remote.
It
•'
i
■
1
is
a
The prospect of
government is
would
clearly
be
early prospect except for two
One is the ri¬
retarding factors.
valries
divide
the
and
union
jealousies
labor
concentrated
united
strength.
organization may be in-f tarding: factor''Is
1
contract
shop
of awesome force in that
Socialist
not
today, organ¬
program in this direction,
II
upon
wider circles
But
in
us
and greater depth every year.
great difficulty in making this
our
that the fear of
is
demonstration
calming other fears and stifling
objections to the aggressive
all
imposition of
mestic
and
more
and more do¬
and the loss of
personal liberty.
more
tyranny,
more
This does not mean that I under¬
threat
estimate the
It
communism.
I
the evil of
or
only
believe that the
means
that
possibility of
a
of the United
by Communist force is not
immediate
a
danger as the
physical
conquest
States
so
mental
United
persuasion.
of
conquest
States
the
Socialist
by
State socialism is the fundamental
of
creed
save
never
will
we
communism. We .will
the soul of America,
never
of the
dom
the free¬
people, by
preserve
American
sacrificing
our
lives
and ■ our
treasury to prevent the forceful
imposition of international social¬
ism if we are persuaded to accept
peacefully the same sort of gov¬
ernment, imposed on us by United
Nations treaties and by Federal
expanding our national wel¬
that
and
hamper
exertion
The
the
still
of
other
its
re¬
disillusion
advertised
well
The
Marxian
to create an all powerful So¬
cialist state is to use labor organi¬
way
the
as
economic
proletariat"
the
of
means of gaining
dictatorship out of
political
the
which
plainly seeking supreme eco¬
and political power.
The
weapon
is,
hate, the so¬
are
being
which
laws
"dictatorship
then
can
be
The recent rapid prog¬
achieved.
nomic
battle for power.
and your
forced
an
Bureaucracies
this, I believe we can
go much further and earlier in
teaching
more
specifically
the
elementary principles of finance
and their human and political as
well as their technical aspects. A
a
bring ortly the peace
Today the union bureaucracies
Beyond
izing
can
find
youth to respect
will
children
cialistic
zations
money.
group
business
a
Today, We Have Union
whether it is integrity
statement, or of character, or of
business
em¬
of submission to dictatorial power.
integrity,
not want, and that
do
they
their
laws
nopoly
We
a
fare state.
satisfaction in debunking our his¬
torical
of
establishment
convince
to
late
too
petitive strife. But a labor mo¬
nopoly as well as a business mo¬
attitude
sympathetic understanding for
the great achievements of the past
and the great men and women in
the country's history.
Youth ;is
the time to build bulwarks against
attitudes
an •
by
The
that
monopoly will likewise end com¬
of
cynical
political
a union
was
peace
approach to life's
is then that the
is laid for
of
only seeking industrial
ending union rivalries
when he signed an exclusive con¬
tract with one union. The repeated
claim of the unions today is that
labor monopolies will bring peace.
ployer
not be the time to teach the
theory of sound money in the
technical sense, but it is the time
inculcate
no
was
concentration
the hands of
Frequently
in
autocracy.
may
to
the
of
dangerous economic and
future.
the education both of
youth and of adults in this coun¬
try is peculiarly within the sphere
of women's influence. Early youth
which
There
contracts.
threat
Second,
in
many
employers
unions left
doors of employment open
independent workers there was
labor monopoly established by
to
in
direct share
a
between
many
compe¬
many
So the members of this organiza¬
will
between
and
confident
number will
increase year by year and
that
their
responsibilities will grow.
it is
that this
and
the days when
In
tition
sponsible positions in finance and
by-gone
closed shop con¬
many
not
any
majority of the American people
unionism
in
negotiation
of
tracts.
vast
compulsory
the
and
years
Many other members are in re¬
business,
difference be¬
the present campaign for a
tween
Treasurer
is
to
I still believe that
being used again as the basis for
including even
large employers, do not ap¬
the
opposition
socialism.
more
it
real opportunity to
a
their
foreign aggression and tyranny is
people,
preciate
have
register
unlawful
as
servitude?
Presi¬
dissatisfied citizens who
silent
of
involuntary
of
as
sound
honest
some
prediction
com¬
believe that
you
privately
are
dent, Sally Butler, was a roving
representative of the Treasury.
Another
member,
Ivy
Baker
Priest,
civic association
a
fraternal organization
a
be
free people only volun¬
tary societies, only unions which
deals every day in
with parts of the
dent this year
or
should
among: a
government and
the
of
institutions.
related
upon
membership
making
by
pulsory?
"
•
First, many of you are the di¬
rect participants in the financial
program
agreement
difficulties
church
a
or
organization, but, in reality, it is
very
getting
these
that
remote to
members
the
of
some
in
—
them by orderly con¬
certed action. But do you think
<
wage
well.
as
President
Clerks,
power
direction'—
one
need to help our
and
of
"a lively anticipa¬
people,
well as new
members by having the coercive
assumed that the
value of money will move unin¬
tion from them and other sources
and have been able to watch at
employment in such in¬
first hand financial developments
dustries should be placed on, for
throughout the world. From this
instance, annual basis, the hourly
listening post, we have seen start¬
rates of pay would have to be
ling and almost incredible evi¬
subject to re-examination.
The
dence of the return to traditional
insistence on the preservation of
methods by country
all current benefits and preroga¬ and tested
the
of discipline
discipline on old
be
so on.
in
after country.
It
currencies.
in
longer
no
definition
the
as
spreading among the American
first, as to the unselfish
members but
members
Harrison
he
en¬
has strengthened
years
high, job classifications rigid, and
ury
new
.
the
If
•
Monetary
study
a
titled, "The Revival of Monetary
Policy."
A conclusion drawn in
this
study
is
that
experience
throughout the world indicates
".
the use of monetary policy
division has representatives
many
foreign countries.
We
receive a steady flow of informa¬
subject to sharp seasonal
fluctuations, hourly wages can be
tries
"gratitude"
politician.
International
The
Fund
.
and heartfelt but it
to
Labor Government
a
power
a
Senate committee
way
adopted.
was
tion
Evidence from Overseas
Department,
To
a
nation¬
national income and gross
conforms
14
page
the frank admission, made
Harrison,
of a few months when
sound monetary and fiscal pol¬
are
exceeded
and employment secu¬
that of almost any other country
be increased within the
in the world.
The principle that
framework
a
night to day
from
old
over
was
old-
these
that
lacking
in dynamism and that more and
endure.
more government spending is re¬
It would appear to me that con¬
quired
to assure the country's
siderably more thought should be
growth and prosperity? Here is
given to the solution of this prob¬ our reply:
lem
turning
omy
establish
to
There you saw an econ¬
confidence
the people.
from
only to bring in
under the "Dodge Plan,"
by our own Joe Dodge,
Director of
the Budget in
1953
devised
effective central bank¬
ing system as the core of a sound
financial mechanism. Our princi¬
thou g
Ciement
not only real
tion of favors yet to come."
Prospect of
in the space
that
sub¬
Continued
system
.
political pressure
have
of
service,
of this
lishment of the German currency
The Sav-" and 1954.
Program has been step--
ped up.
which
ject
ready
pro¬
women.
purpose
three ways,
bers of your
workers,
business and
many
States."
the mem¬
Association have al¬
rendered
distinguished
and our appreciation is
In these
in
many
trying to lengthen its matur¬
are
employment,
been the
volunteer
in the United
vividly to me
It stands out very
(3) We have worked unceas¬
lay-, ingly to carry.;iput Hamilton's poli¬
seasonal
Bonds, they become shareholders
many
ander Hamilton in 1791.
personally because I visited Ger¬
during
come
of
world.
1946 and again in 1950.
(2) We have sought by many ; The thing that happened between
those- dates was the revaluation
means to distribute the debt more
of the currency and the re-estabwidely among more people. We
ned: ings Bond
in¬
without
pur¬
is to distribute the debt
widely among our citizens, fol¬
lowing the precedent set by Alex¬
the
throughout
policy
monetary
tem¬
Treasury
this week.
workers- debt has been reduced.
a
year,
are.
program
and turns downwards. I can im- V debt
J agine the reception such
greater understanding and sym¬
pathy with the work of our gov¬
ernment.
Through their Savings
the
to
This
work
The immediate
,
purpose
j
of
including
the?,
of insuring profits when
the business cycle reverses itself
to .the
fessional
hour into
an
refer
program.
Americans
of
just as im¬
but
directly,
portant, the Savings Bonds pro¬
gram is a method of educating
more
people in this country in
habits of thrift and in giving them
about $5V2 billion of E
Savings Bonds. This is in
H
and
I
program.
Savings Bond
millions
thousands
"GAP"—guaranteed annual profit.
Every wage earner should be re¬
quired to
can only be attained—short
rigid government regimenta¬
tion of the economy, which we
do not want—if both industry and
a
response
policy,
facetiously
call;
Less
pro¬
ever,
national
new
a
their
Third, your organization is tak¬
ing a helpful part in one particu¬
lar phase of the Treasury's sound
supplemental
create
studying
gram.
un¬
and benefit the en¬
This objective, how¬
tire society.
legislation, and industry have a responsi¬
becomes
necessary
to curb
the bility 10 seek the way to greater
employment
security
for
our
power of labor over capital.
Increased em¬
Perhaps we should all endeavor working people.
similar
•3
employed
costs of
economic
and
social
in
terested
ployment security will reduce the
the
to
majority of workers who are not
legislation to curb the power of
capital over labor. Now we ,are
clearly reaching a position, if we
have not already reached it, where
,1
disadvantageous
national history when s ticularly
our
became
in
the
United States should warn us
that
ress
the
of
such
a
program
prospect of a
government
sive
label)
Socialist labor
(under a less offen¬
is a very real and
threatening menace to the
tenance of our
of
government and
tional
people.
liberties
'
;
1
f
main¬
constitutional form
the constitu¬
of, the
American
.,.1
32
The Commercial and Financial Chronicle...
(192)
the Income bonds in 1955.
rail analysts
some
possibility that
In fact,
feel there is
a
good portion, if
a
not
all, of the 4V2% arrears may
in 1955, in addition to
the regular accrual. Income bond
interest is mandatorily payable, if
be
earned
earned, and if all of the 1954 and
•
has
There
been
securities
the
the
of
Western
North
particularly the Income
preferred
and
common
This heightened interest
months,
'
bonds,
Ry.
stocks.
has been due apparently to a com-
of
bination
recent
and
factors, including the
in earnings,
improvement
hopes of
better showing in 1955,
a
possibility
sive
of
from
ming
in
meeting
stem-
changes
recent
officials.
certain
At
in
of
Morton
of
directors
for
In
June, H.
L.
selected
chairman
continuance of good traffic and
operating
efficiency,
Fall could have favorable impli-
—
—
Committee,
succeeding
from
9
page
M
■
Williams.
AulllSlItlClltS 111
1*iIM1»VM»U «ii
the
for
terest
In
first
time
it
since
1944, and di-
rectors omitted the 4V2%
interest
early this year, which would have
been payable
The
basic
problems
"North Western"
seated
tible
and
of
KPfllllf)T1 Oil
AlvZ9NAUftAVAI
easily
suscep-
These
solution.
4
strictly
include
want the law enforced
we
concerned!
Ton-miles of
"What
is
me?"
about
the
cry
Special advantage,
service, special rules for
special
me,
but
bear
petitor!
from
down
the
is
on
that
story
com-
my
everywhere
comes
plus rising costs have aggravate^
wide
government
broadcast
that
look
men
to
total
freight traffic.
find the common
we
of the nation, both
car-
trucks
taken
installation
are
of
691
Hoover
units, acquisition of modfreight and passenger equip-
ern
wient, elimination of unprofitable
branch lines, reduction Jn passenger tram mileage, increased rates
and
tares,
and
^Hggy back"
these
service.
"to have
fruit.
economy
borne
of
expansion
many
ment
truer
enforce-
of the laws
but themselves." No
government
for everyone
statement
was
made,
ever
Regulate the other man, but
iook
Some of
measures
in
strict
want
men
things,
"but it is true that
says,
diesel
different
the
when
law
over-
to
come
you
operation!
-
appear
With
rise
a
Amendments i© -Interstate
l^Tm°on0thsy t$hi4s9'Tarn
far better job than government
eliminate from their capital struc-
confront
the
un-
carry on
unless that in-
tation
under
regulation
has
not
11.9%
less employees than
in the
•
n
Snparable
1954 period
analwlnVtheoo.i
analyzing the current posi-
In
in
to
one
hear
in
not
he
mav
portation system able to
flmea
*or
three
Mmed
ud
13W%'at
at
*JV2/c
that the
railroads
have
•
jug
.Mtg,
such
sucn
timp
time,
one
one
be
Should
bhould
outstand-
eonstitufe
constitute
arrears
arrears
charge to income before
>3iiination of anv earnings
oi
any earnings
"the
for
the
1954
equities.
year-end
a
a
f!f
the
Income
^
tain
avail
avail-
tion
Arrears
at
amounted
to
arP
earnings
where
41/2S held ahve in the sink-
Amounting
earned
and
Since
to
such
$566,000,
accrued
interest
was
not
in
1954, it is
^resumed two year's
sinking fund
requirements would also have to
be earned before
determination of
.mcome
available for
A8Hino°C,,;
the
„
Adding up all of the
-cnarges
and
1954
$5
,n=-
pre•
1.95o prior
deficiencies, it
to
a
power
is concerned.
the
Pennsylvania
(1) Since
1945,
the
railroad
have purchased and installed, 20,754 diesel electric units at
a
cost
in
the
May
issue
rates
will
locomotives,
todav
amortization
that
only
but
also
fmm
the
half-
the railroads have purchased
and
installed
64
coal-burning
by steam locomotives at a cost of
favored
exnenses
a
years
great station
city. We do not like the
"subsidy." But out in the
West
word.
don't
we
We call it
Why
"passenger
call it
not
must
such
mav
is
de-
be
in
an
low
tomorrow
amounts
fact
dn
not
charges"
(5) During the
half
same
five and
the railroads have
vears
electrics at
cnarges.
road.s
Baltim0.re and Ohio, Chesapeake
an<^
^ew Yark Central, the
Pennsylvania> and many others,
whlch last year would not have
shown reported earnings sufficient
to meet their 1954 dividend PaY~
ments! excePt for the accelerated
desUucUon^am°rt.zation.
enmnetitnr
„
a
nnr-
shouldn't the public assist in car-;
.,
.
.
,
.
Railroad Earnings Inadequate
a
cost of
QQ^ nftt son
transpor-
I
am one
of those who
believe private enterprise
can
do
earnings that did
to
most
the lowest levels
year
of
severe
pot 0f gold from which to pay!
n0
Every dollar must come
freight shipper by way
this loss.
from
the
added
0f
freight
industry's
nished
and
has
able
statistician
with
us
coal
figures
industry
coal
dis-i
Tne
rates.
very
fur-
showing
alone
an
pays
additional 7% in freight rates duetQ
the
will
the
specify
,d
deficit.
passenger
Time
permit^
not
things
many
to-
me
think
I
done
b
'
.
We have eliminated
ion¬
No one knows how much 11 c°st
the railroads, the shippers and the
taxpayers. In one case, it is reported, the Commission expended
better than a million dollars,
The
waybill study.
It has cost
the railroads thousands of dollars,,
the taxpayers also, and
ascertain
can
it
is
of
as
far
I
as
little
very
value to either the shipper or the
railroad.
wouid
j
der to
the
iimil
exempt
moVement of
a
from
Droducts
the
car-
agricultural
farm
the
to
primary market,
j
would
tions that
of
jation
eliminate
than
more
carri^rs
water
the
exemp-
prevent the
now
90%
regu-
the
of
of the nation
carneis oi uie
m u .
I want
no one to believe that I
for the abolishment of regulation.
It is absolutely necessary.
am
If there
regulatory body
were no
to control rates, it would not take
long for the various segments of
the
industry
to
other
drive
seg-
ments out of business.
This is
true not only between the trucks
and the rails, but is also true between the various segments them-
agSraU
Rail
selves
and
^SStTruck*TheroisTo
tification
for
going
between
on
the trucks
the
tru^k
jus-
which
war
the
rails
It should end
is
and
Neither
^unfr
u-
one ls hiy-white. The biggest rate
war
since
I
have been
on
the
iwve
o
Commission
rail
is
The cuts certain
V,i
oeen
on
against
rails
have
ine
rail.
made
^ eertam rans nave maoe
the income of other railroads. It
mUst be evident to all that now,
.
other
since
depression.
a
Gross
the
year
1955,
the
rates
are
build steam locomotives. Finally, not. The increased earnings re1 call attention to the fact that ported come from decreased operthe railroads of the nation are be- ating and maintenance expendicoming dieselized as rapidly as tures.
possible. The Norfolk and WestIt is generally agreed that the
in-, service is entitled to the business
1938,
in
materially affecting
are>
I am also informed that one of being cut because carloadings
the largest manufacturers of coal- have materially increased but the
burning locomotives has ceased to gross revenue of the railroads has
tat.ion syste,m is "ndec P"vate dustries. Freight carloadings fell be it the
enterprise.
pas-
deficit? The railroads have-
senger
w1r, an(t
best
our
of forcing
the nation
shippers of
the
^ ^.ot a sm6le coa^l-burning
PurcIJased by the
iailroads in the last 16 months.
ern, one of the last to recognize
But, it has been broadcast, the
The earnings which are now the necessity of new
power, has
railroads, the trucking industry, reported by the rails are com- bought eight diesels.
and the water carriers have been pared with those of the year
I believe the rails must meet
getting along very well under 1954. As you know, in 1954 the the competition which confronts
regulation; that we have the finest rails experienced much more se- them. The segment of
transportransportation
system
in- the vere declines in operations and tation which can furnish the
Thank God
sup-
If the passenger trains are.
needed in the public interest, why
electrics at a cost oi $l,993,U83,50U.
same articie lists such railas the Atlantic Coast Line,
'
world.
that
use
"price support.""
.
1
time
ruth-
the"
amount -on
same
Central's
York
Middle
$12 361 700
1 stfmn"«g from *iz,<hh,/uu.
ooeratine
com-
a
That
added
not
u
zation
bv
shinner
are
lower tax accruals stemming
(4) In the last live and
.
bodv
there
the
steam
il
optAaunS expenses do not nan years tne railroads nave purJf
include these substantial amorti- chased and installed 12,935 diesel
Rates
becomes
pav
J"f
coal-burning
trucks, the water
ners, or the rails.
car-
But I want the
regulatory laws and the interpre-
-
that
Regulation "Absolutely Necessary"'
year 1955 some ing steam locomotives were purearnings will be chased and installed in the years
borrowing from the future as a 1945 and 1946.
ments
refnila-
comes
prevent
the
to
main-
,
reduced
there
While
SOmeone
fund.
hasis
..
destructive.
P0Wer
unfair
,nme
fair
•
to
continued.
reeulatorv
a
ctruction
applied first
the In-
be
the
*■
and
comoetition
an(j
requirements on the Income 4V2s,
«ich excess must be
on
a
.
but
advantage
•to payment of interest
at
effectively
have
a
rates,
must
Detition
regulation,
+
a
-charges, sinking funds on the 1st
mortgage 3s, 1989 and two year's
tome
an
thim?J is
imnortant
of
rates
iess
4V2s
outstanding.
In
if there are any net
in
excess
of
fixed
Addition,
«ng
crush
reasons
the
question
4%%, or a total of $3,039,000 on
when
the $67.5 million principal amount!
of
could
discrimination as one of
for
main
Todav
deter-
.wmauon
-able
day,
a
arrears
imately the
New
in
invested
"But for the
Rail- $200 million of
£lrs£ established.
monopoly
other
WMkcumuatfve 1" d >/'d u a 1 by discriminating result of income tax deferments
whethe^or nm ^amt him. But not so today, stemming from accelerated amorto
maximum nf Competition has practically elimi- tization. Railroad earnings state-
anv
any
interest
any
.
the
vears
or
on ;
Station in New York and approx-;
the
peace and in °.£ th® "Railway Progress" maga- at a cost of $99,171,800.
zine, it was stated:
Discnmmationwas
(3) Half of these 477 coal-burn-
^
was
road
4.As
the
serve
!-""d evefr.ywfher? when regula-
S'
e„a
"ay of be
•frillyreahzed. Under termsnoJ the tlon
£Te
which
$3,600,000
by
of $3,081,489,900.
tban 60, years. af°\ Tbe Purpose that cut is much higher on the
(2) Since 1945 the railroads
°f r,ef.ulatlon( 15 t0 bu'ld a tra"s" great railroads of the east. Only have purchased and installed 477
^v^funto'swuritfes thero1^; i"""0" 1" timeao£
^moortont S
Slid and
thaJ
.
tinguished
regulation.
<
throughout
the
nation,
are
now
huge ' amounts;-
been confronted with many problems which have not been solved
the sum of $6.8 billion for improved equipment and $3 billion
on rebuilding the right-of-way, a
total of over $10 billion since Jan.
1, 1946.
earned only 3.10% upon invested
Now for your information, and
capital, and the trucking industry not by way of reply to certain
throughout the various parts of charges made against the Interthe country failed to make a fair state Commerce Commission by a
return.
Not
only that,
but
to handful of individuals—and which
even make the amount they did for reasons I know not received
in 1954 it was necessary to cut great publicity—I call your atexpenditures and employment. In tention to the record as to what
1954,
the
railroads
employed has occurred as far as locomotive
™
oorn
on
upon
not
that of private enterprise during
Second World War. The con- Railroad Services Are Adequate
fusion is inescapable. Government
It has been said the railroads
GXZ are los.lnf m?n®y because they
trayagant. It cannot be compared are not furnishing the service;
Wlth Prlvate enterprise.
that they have failed to keep up
net
Commerce Act
year 1953 it^does not seem posthiT seasonally low
M®ny Tcban<P? have been made sible that they can maintain
1ms oeriod wafcut
halTJfr to
^e Interstate Commerce Act equipment and right-of-way with
^652 000 from $5 316 000 i^ the ?i"Ce J waS establl^ed better aacb a s,ev.ere cut especially when
loss for
million*'
given to cutting taxes
the passenger terminal
be
must
rying the cost instead
do
ture over $iy2 billion of bonded
"What is all wrong for govern- indebtedness and $800 million of
feet economies, but the struggle
ment to do for some is all right
preferred
and
common
stock,
has been a difficult one.
Among for government to do for others." Why, in the year 1954—last year
some of the more important measIt [s perhaps a harsh thing Mr. —
the railroads of the nation
for
nearer
a
port?"
of
the officials
to
The
Some way must be found to elim-^
inate that deficit.
Consideration,
14%
jn
the road's problems. Management
bas made strenuous efforts to ef-
ures
would
word
But, under regulation, there to date; that their equipment is
Washington. Former President have been many difficult times worn out and needs replacing. I
Herbert
Hoover, a man I once *n the past. In the last '20s and have no doubt many improveters and occasional floods tend to
criticized but now consider one '30s it
was
found necessary to ments
could
be
made
which
increase
maintenance costs.
In- 0f
the
great Americans
of all reorganize many of the great rail- would be of great help, but I
tensive competition from trucks,
times, said in a recent nation- road systems of the nation, and call your attention, to the fact
.
perhaps
be
$400
and
changed
figure
liquids and
through
pipelines
are three times the prewar level,
The pipelines now account for
moved
gases
.
in Washington.
the large amount of
light density
heavy terminal
costs and large losses from passenger train service. Severe win-
a
to our competitor, but what a operation. Compare the governdifferent interpretation we want merit's operation of the railroads
placed upon the law as far as our during the First World War with
branch
mileage,
freight
review the past record of regulation one cannot say that transpor-
.
as
the
of
rather deep-
are
not
are
all
of
deficit.
passenger
Commission says $600 million. Ii
think
the
formula
should
be
regulated carrier. No industry can the burden of paying the
If jlllf A3fl
own business is
Appl 1, 1955.
traffic.
17%t
for
year
dustry is earning a fair rate upon
invested capital. Thus, if one will
1*"
iiwuivwi
1954, the road
reorganized in
was
last
properly
B1
its Income bond in-
earn
huge
a
which
■
■
gomery was elected a member of
the Finance Committee to succeed
R. L.
riers. Truck and
has
risen
dramatically.
Tonmiles of freight moved by the
trucks are four times greater than
before the war. Trucks accounted
ners
Ml* J
Walker, resigned, and W. J. Mont-
failed to
waterway carpipeline traffic
The rails
confronted with
are
and rails, are faced with problems
W.
F.
share of 17% of the nation's
freight traffic, and I call your
attention
to
the
fact
that the
Thus,
Continued
was
the Finance
of
three
weeks
they
have
matched the corresponding totals
for
two
years
ago.
Waterway
carriers have retained their pre-
stations
something more than the regular cations marketwise for the "North
4M>% accrual might be earned on Western Income 4V2s.)
3-year
a
Wells
last
The Passenger Deficit
What do I advocate?
of the nation
small part of the
Weinress, head of an infirm in Chicago, to the
board
the
levied
a
vestment
term.
in
Commission, due to the exemption
clause,
regulates
only
a
improved
May, an opposition
stockholders
elected
group
that
true
bondholders can look forward to
possible economies from the study
now
under way in connection
with
possible
coordination
of
services and
facilities of the
"North Western" with the "Milwaukee," and possibly eventual
consolidation. Realization of any
sizable economies may take sometime, but release of this study this
a
annual
the
is
war
the road's Income 4V2s, on the
other hand, are hopeful that with
aggres-
more
policies
management
It
industry,
Income
earn
provide
1953.
of
all segments of the transportation
handsome return, albeit speculative.
The bonds are currently
priced around 65.
(In addition,
would have to
would
For 1955 to date, freight carloadings have averaged 8% more
than those of 1954, but they still
lag 6.2% behind the like period
tations thereof to be the same for
roughly $11.7
million before any net earnings
would be available for the preferred stock. Since 1954 income
available for charges was only
$2.2 million, it can be seen the improvement in net would have to
be substantial to permit any earn-,
ings to filter down to the preferred stock in 1955. Holders of,
activity in
Chicago &
in
recent
4x/2s
net earnings last
the slimmest since 1949.
year were
is estimated the "North Western"
increase
some
in interest and market
1955 accruals are earned and paid
on
or
before April 1,
1955, the
4.1/ic 1QQQ
/i ,
Chicago 0£ iNortn west rn inconi
and
revenues
Thursday, July 14, 1955
United States has the best transportation
Moreover
svstem
this
is
in
the
just
world
about
the
only country where the transportation
system
is
private enterprise
keep
it
that
remembered
and
that
controlled
upon
to
It
the
should
the
very
be
prosperity
States:
large
existence of
a
by
and I hope we
growth of the United
is dependent
tent
way
ex-.
am
.Volume
182
adequate
Number 5446
and
efficient
transpor¬
tation system.
The
public
Washington
not
are
only
interest
without
whether
the
consideration
decisions
years
Eastman,
who
tinction
as
mission
for
said
the
ago
served
late
Joe
with
dis¬
member of the Com¬
a
a
great
many
years,
concerning the qualifications
of
members
Commerce
of
the
Interstate
Commission,
and
I
quote:
takes
has
is
not
asking for
indicated
upon
it.
make
that
de¬
a
take a position which
react seriously in some way
the one who makes or takes
may
It
cur
The thing
to
or
requires
no
disapproval, unless those
disapprove
have
to
power
Power is
not
a
shifting thing.
ber
the
the
12-14
a
that
cent
overlook
the
industry
it
expects the
settlement).
fact
settled
that
for
in
which
of
a
to
a
study
modernize the plant and
operation;
convert
the
plant
to
another product which it might be
able to handle
more
efficiently
than its previous products;
"(c) close down gradually in
order to
(1) allow time for the
orderly absorption of the workers
into other jobs, or (2) allow time
cents
year's time
the
can
time when
thing
gerous
to
well
it
a
remem¬
a
dan¬
the
dis¬
was
incur
pleasure of bankers, but there has
been no danger in this since 1932.
It became
greater danger to in¬
a
the displeasure of
farm or
labor organizations. There is noth¬
cur
ing
important than to curb
more
abuse of power, wherever it may
reside, and power is always sub¬
ject to abuse."
problems
Allegany, Pa., following the
sale of 418,550 shares of that
com¬
pany's stock (93% of shares out¬
standing)
5by an underwriting
&
by Eastman, Dillon
Co.
are adopted—or where
operations have to be rescheduled
committed
When
direct
Mr.
Japp
Corning
Corp.
Mr.
is
Gen¬
Pittsburgh
Young
is
still
Foster & Marshall Branch
Marshall
have
office
at
Street
under
504
Theodore
F.
Foster
—
opened
South
the
a
in
the
&
branch
up
as
months
and
Company has just had to face:
(1)
Determining the cost of
nancing a guarantee.
fi¬
(2) The feasibility of stabilizing
production, estimating or antici¬
pating needed volume, ironing out
seasonal
and cyclical
variations,
calculating the risk of producing
for inventory,
designing new and
stock
move
seasons.
it should be noted that the
pub¬
licized $55 million fund is an out¬
side
figure for the next three
It is
years.
not
not
clear
favorable
a
would
reduce
whether
tions, resulting in
Ford
adjustments.
spent
$55
million
the
un¬
could
represent
saving.
company
The
Therefore,
incentive
to regularize or
employment may, in the
analysis, hinge on whether
stabilize
Ford
or
Union
other company with a
GAW will be
any
negotiated
make further efforts in this direc¬
What
is
the
outlook
for
auto
industry suppliers? To make full¬
est
of capital," equipment and
force, considering the addi¬
use
work
tional
GAW
overhead,
manufacturers
become their
to
the
auto
undertake
may
to
parts suppliers
increasing extent.
an
in
Even
own
the
absence
of
such
a
GAW
seve*el of the most
questions
principle
about
have
yet
that
Assuming
the
to
be
guar¬
tion
facing
for
their
labor
labor
stiffer
at
costs
the
competi¬
going
are
try for the next year or two, the
experience and adjustments made
the
the
in
the
of
With Campbell, McCarty
(Special to The
Financial
the
is
Peter
—
Van
with
up
Exchange.
steps
to
bility
meet
and
(Special
to The
DETROIT,
Financial
Mich.
of
Louis
C.
an
was
formerly
with Wm. C. Roney & Co., and
prior thereto with Titus Miller &
where
union
has
been
on
decision
determining when
to
introduce
to
new
the
apply
GAW
policy
S.
chances
on
going after
added
to
the
staff
of
B.
C.
Morton
&
Co.;,
Penobscot Building.
Harr F.
Harr
situations,
Ranney
Ranney passed away
July 6 at the age of 52. Mr. Ran¬
Morristown, N. J.,
ager for Reynolds & Co.
ney
was
man¬
layoffs
be
may
efficient
and
economical
than the reduced workweek.
Many
contracts
mobility
ments
shifts.
strictly limit
jobs, depart¬
between
or
Yet
firms
com¬
mitting themselves for annual em¬
ployment compensation must
make the fullest productive use of
comes
assailable. The
more
ques¬
tion of management perogatives is
a
particularly sensitive
the union's
since
area
policy-making role in
connection with administration
GAW fund is
any
known
will
subordinates.
In
terms
their
jobs,
be
necessary
yet
as
an
of
un¬
quantity.
require
the
application to the job.
spotlights objectives union
This
and
management
must
work
to¬
ward
together; and awareness on
of all employees of the
need to preserve the fund for their
the
part
individual
benefit
astic
full
their
cooperation
their
share
in
of
enthusi¬
shouldering
the
workload
the
cooperation of shop stewards
representatives in back¬
ing up management when dis¬
called
are
may
GAW
the
puts
work
force
that
premium
a
be
can
on a
shifted
job to job to avoid layoffs,
management will need more flexi¬
bility.
Here
the
foremen
will
probably have to bear the re¬
sponsibility for additional train¬
ing, for assignment and reassign¬
ment of employees.
Foreman
to
responsibility is likely
increase
the
in
decision
employees
the
end
another
to—
.new
be
to
are
area
whether
to
as
retained at
of
probationary period.
In
general,
the employer
wilL
want
a
better quality where a
rank-and-file
guaranteed
worker
is
hired
wage
be
critical
decision in their hands.
Joins Walston Staff,.
V
Walston &
New
York
other
principal
nounces
has
that
become
firm
at
Miss
Exchange
its
and
exchanges,
June
L.
midtown
an¬
Kirchmann
associated
registered
a
as
tive
with
policy regardless of the
a GAW commitment.
Fluctuations
in
production entail
considerable loss for employers as
well
as
workers.
On
the
labor
a
Union Contracts
light
new
than
it
employer and union
is
was
much
not
five
or
as
are
different
ten years ago.
new
sions
Cross,
steadier
Here
office
at
company
ups
benefits
health
and
programs, and even pen¬
have
been
added. But on
of
some
can
take
the
steps
to flatten
Kirchmann
Merrill
With
Kaufmann, Alsberg
Kaufmann,
Alsberg & Co., 61
Broadway, New York City, mem¬
bers
of
the New York
Stock
tered
representatives.
fight cancer
with
a
Forecast
a
out
yearly
personnel
Can you budget your man¬
requirements
power
on
the
basis
estimated sales and
your
pro¬
duction budget?
(2)
Analyze labor turnover.
Keep
accurate
an
discharges.
of
record
Distinguish
and
a
CHECKUP
all
between
layoffs due to lack of orders, ma¬
terial, plant breakdown, release of
temporary help, etc.
(3) Plan
your
hiring. Make ad¬
an eye to
The
cost
of
ditions to the force with
permanent
needs.
overtime
transfers may add up
to
or
less than that of carrying tem¬
possible'
eligible workers
the
with
consideration
to
plant
was
that
prospect,
give serious
various
•
CHECK
erations require
Faced
Ex¬
change, announced that Harry H.
Hornstein, Benjamin W. Mermelstein and Harry Rattner are now
associated with the firm as regis¬
and downs:
(1)
alterna¬
the
whole, the structure and
con¬
porary
seasonal
or
employees.
(4) Train employees to do more
than
one
but
train
at
several
job. This may be im¬
impractical where op¬
or
skill,
it's
least
a high degree of
usually feasible to
a
few
operations
so
workers
that
a
ing squad" is available to
temporary rush situations.
in
"fly¬
meet
Start
21
Street, New York City.
work force.
are
Generally, the trend in bargain¬
ing was first to give security to
the workers on the job in terms
of hours of work, wages, seniority
and
grievance machinery. Alter
that followed off-the-job protec¬
corporation would
the
representa¬
was
formerly
Lynch, Pierce, Fen¬
& Beane in Newark, N. J.
with
ner
Co., members of the
Stock
of
same.
closed.
on
basis. It will
increasingly important to im¬
press this new factor on foremen,
and
supervisors who have the
a
Stabilizing Employment
cept of the agreement remain the
a
the
foremen;
for."*
Smoothing out periodic inter¬
ruptions in output is sound man¬
guaranteed annual
wage, the corporation moving its
plant would have to meet a sub¬
standards of fully
for a
year
after
of
from
West 44th
employment
most
whole¬
it
Since
hearted
needs.
welfare
part
of
such
costs.
It
would have to maintain the living
F.
their
the
stantial
the
as
reinforce
risk
searching re-examination.
Basically, the collective bar¬
gaining agreement with which the
average
Here is what GAW
the unions foresee it,
products,
may
of GAW, a
good deal of established bargain¬
ing practice and policy requires
familiar
quote.
"Under
settlement
narrowing the
GAW
a
of
Yet in
a
differential between foreman and
or
of
In
Blue
as
effect,
must be treated
re-examine
agement
markets.
such
do,
management,
is in for trouble.
company
In
security
greater
responsibilities
new ventures.
companies
now
new
A New Look at
a
as
to launch
established
covering
I
front-line
to
some
pressure
larger amounts of capital will be
Even
Clauses
and
achieved
than
side, removing the fear of layoffs
risk-taking be discouraged? and interruptions to income can
If the GAW becomes firmly estab¬ produce
tangible results: Increased
lished throughout industry, much
efficiency, higher productivity and
will
Peter
rank-and-file people
have
Will
functions,
making re-
management
and
visors. Where any of them get the
feeling that
fore layoffs are permitted.
on
auto industry, there may be hard¬
sponsobility.
(Special to The Financial Chronicle)
—
in
has described in detail how
intends
brake
B. C. Morton Adds
...
con¬
equipment and build plants."
Amplifying this statement,
it
Co.
Mich.
intend to retard auto¬
prevent the re-location
additional financial
and
Co., 600 Griswold
Hebert
Szalankiewicz
Auto
new
tions
GAW
and
services.
plants.
But
the
union
recognizes that "the guarantee in¬
jects into the employer's calcula¬
Chronicle)
—
or
Supervisors
Watch the psychological impact
of GAW on foreman and super¬
Many contracts insist on worksharing or short work-weeks be¬
the
squeeze
supply
ship ahead for the businesses from
for whom they buy supplies and
industry
responsi¬
The
a
hesitate to go into new fields, take
A. M. Kidder &
DETROIT,
GAW
liability?
is
which
necessary
sideration
Mr.
its
the
there
posi¬
tion quite clearly. While its
goal
is to stabilize
employment, it says
Hebert has become associated with
Street.
will
as
companies
be
can
Workers Union indicated its
mation
Joins Kidder Staff
'
in
it does not
Campbell, McCarty & Co., Buhl
Building, members of the Detroit
Stock
deal
greatest
What
Chronicle)
connected
now
auto
significance
business generally:
take
DETROIT, Mich.
Osdol
pioneer
So far
holders.
time
same
line with UAW settlements in the
opened
under
probably need for automa¬
tion, shifts to new products and
markets, etc.
ciplinary steps
of now,
industry.
Building
few of the clauses requiring
critical re-examination in view
suppliers
attempt by the
an
more
easily achieved by concen¬
trating on jobs carrying approxi¬
mately the same pay. Concentrate
on
the job requirements, .not the
qualifications of the present job
a
Developments to Watch For
answered.
management of George W. Humm.
are
But stabilization of
pay on a substantial basis
will be confined to the auto indus¬
American
Here
and union
of
the
the
employer
an
of the
tion.
anteed
in
a
on
operations.
paralleled by rescheduling at the
supplier level. This could find
As
office
stabilize
just
which
pressures
place
•
DAYTON, Ohio—Merrill Lynch,
Pierce, Fenner & Beane have
branch
to
new
will
union to recapture this difference.
important
a
the
GAW
development, the rescheduling of
car
production will have to be
confronted with
Schmidt.
Merrill Lynch Branch
course,
changeover, the pushed sales more
aggressively in traditionally off¬
season periods. They: will certainly
It is
uncontributed portion of
or
of
sharply cut down
period of layoffs due to model
the
also
likely that the cost of the
contract will be reflected in price
GAW,
the auto makers
total expendi¬
a
of
to close the
before
Even
contribu¬
of less than $55 million.
contracts will be obsolete in terms
employees.
plant,
The tendency in recent
years to
the guaranteed annual wage liabil¬
specify in detail the job and its
ities involved might cause it to
rate is evidenced by the numerous
volunteer various kinds of help
grievances and arbitrations. What
to the workers, including payment
will be the meaning of these pro¬
of
their
moving
expenses,
as¬ visions when the
emphasis must
sistance in financing the purchase
shift to worker flexibility?
of new homes, etc.
(Under the
In
the
case
of
seniority and
guaranteed annual wage, of course,
bumping, the traditional concept
management could
not
force
a
of
job-rights
may
have
to
be
worker to move by threatening to
spelled out differently to avoid
deprive him of his security, but serious
inefficiency.
there would be nothing to pre¬
The
right of management to
vent a worker from taking ad¬
determine
products, plant loca*
vantage of such a company offer.)"
tion, seasonality of operation be¬
theless decided
layoff experience
the
workers.
"If management, after consider¬
ing all possible alternatives, never¬
or
Washington
management
the
a
for management will
those
the
Ford
Motor
be
last
Wash.
issue
comes
it will pose
a
Partner of Eastman, Dillon & Co.
OLYMPIA,
GAW
ahead, the major questions
years
the
and
GAW Is An Issue
union
many
more
workers;
"(d) delay movement of the
operation until a buyer had been
found for the
plant who would
provide continued employment for
companies.
Wherever
Glass
Port
Co.
number of
by suppliers who deal with GAW-
They are Messrs. Howard
Herger and Paul D. Japp of
Allegany, Pa. and Mr. Har¬
old H. Young of New York.
Mr.
Herger is President of Pierce
C.
Sales Manager of
through quits, retirements, deaths,
etc., so that the final closing of
the plant would affect a minimum
agreements
ture
eral
for the reduction of the work force
or
seasonal workers. But such sources
will tend to dry
up where GAW
during slow
Three new directors have been
elected by North Penn Gas Co. of
group headed
temporary
special inducements to
Named Directors
Port
of
source
Equally important,
"(b)
an
by examining all jobs at the same
wage level, cutting across organi¬
zational
lines.
Mobility will be
rights and obligations.
keep it in
glass
guaranteed wage.
and
permanent but
I
the
the
security
worker.
calls
for a reassessment
of
the
union pact as an instrument of
job
"(a)
Don't
the
14
hour—partly to buy
result.
a
of
Now
the
older
or
becoming protec¬
fpr the junior worker against
loss of job or job income. This
its
plant. It might find it cheaper, for
example to:
who
desire
such,
cause
in¬
to
courage
retire¬
tion
before deciding to move
tives
GAW
a
industry to come across with a
hefty increase (estimated to mean
normal
is
courage
cision
welfare
chief concern is
courage
when it is shown.
and
senior
Annual Wage Demands!
What happens to the labor
pool?
is, of course, a For
many companies, laid-off em¬
prime qualification, but there are
ployees of other firms have been
often
misapprehensions
as
to
a
"Moral
health
as
main, these
which
po¬
such
strengthened
13
page
as
are
litically smart.
Some
from
Look for Extension of Guaranteed
courage whose deci¬
be made in the
public
will
tion
programs,
pensions
and
ment systems. In the
of
men
sions
Continued
33
(193)
in
industry, men of ability,
men of
judgment, but above
and
to
needed
of
men
all,
officials
today
The Commercial and Financial Chronicle
...
give to
AMERICAN
CANCER SOCIETY
34
The Commercial and
(194)
Lehman
Investing in Common
Net asset value of The
through
I
National Stock Series
mutual fund, the primary ob-
a
jective of which is to provide
investment in
of
J
i
an
be-
|
of their relatively high cur¬
yield and reasonable expectance of its continuance with
regard to the risk involved. Prospectus and
other information
may be obtained from your in¬
rent
vestment
dealer
Group
Securities, Inc., now in the mail
shareholders, reports net assets
$89,962,062 at May 31, the end
of
the first half of fiscal
of
I
|
j
!
This
45%
represents
the
on
the
over
increase
an
$62,007,281
increased
during the
1955.
25%
of
Share
to
¬
34,000
period.
same
The general tone of the report,
to the effect that "we are current¬
&
that gross sales of shares
reached a new high for
reports
in
June
that
Shares
AMERICAN
SELECTED
month
$880,409 compared
at
Gross
with $354,235 in June 1954.
figure
date last year.
same
holders
or:
Securities
National
of
report
sales
the
for
first
months
six
1955 and for the 12 months
June
for
30
also
were
at
highs
similar periods in
company's 22 lk-year history.
the
any
In
months
six
first
the
of
ended
new
of
1955
|
This
rising for
|
New York
ly enjoying a soundly based and
dynamic prosperity," and "an im¬
pressive balance of the evidence
strongly indicates
production and con¬
sumption will continue high and
Corporation
Established 1930
120 Broadway, New York 5,
sales amounted to $3,348,426
excluding $1,684,944 reinvested at
net asset value from the capital
gain distribution paid in January.
paid).
hand
that
.
.
.
total
time yet," is tem¬
some
gross
ing
which
pered with the prudent reminder
stock
gross
of
INC.
FUND, Inc.
selective
June
that, "during any period of gen¬
erally rising securities prices, the
temptation is strong to lose sight
WJTUAl,
the
rived
term
fun°.nDLTD.
benefits
sound
from
be
to
investing
for
de¬
Shorter
-
term
price
in¬
itself, while highly accept¬
is irregular.
Thus, more
crease
able,
weighting of an investor's think¬
ing in the direction of the more
dependable
Prospectuses upon request from the
national
and
long-term
vide
distributor and investment manager;
of
benefits
an
income
will
growth
pro¬
excellent bulwark against
over
any
intermediate
price unsettlement which, even if
concern
DIVERSIFIED SERVICES, INC.
869 Investors Bldg., 8th and Marquette,
only temporary, can otherwise be
disturbing."
Minneapolis 2, Minnesota
SALES OF THE National Securi¬
ties
Series
funds
for
record
978,
mutual
of
June
for
the
set
investment
all-time
an
month
at
$4,924,gain of 31% from the vol¬
a
for June, 1954, according to
figures released by E. Wain Hare,
ume
Vice-President of National Secur¬
ities
&
Research
and
managers
Corporation,
of
the
sponsors
funds.
For
the
first
six
including re¬
amounted
to $30,-
investments,
244,455, compared
«
t
284
ATOMIC DEVELOPMENT
MUTUAL
FUND,
months ithis
sales volume,
year
in
the
with
$29,122,corresponding period
a
designed to provide
in
a
variety of
#
companies participating
•
,
on
assets
of
the
National
in activities
resulting
from Atomic Science.
of
'
♦
*r rm fa as and free prospectus
UNIIC DEVELOPMENT SECURITIES CI
»OM THIRTIETH STREET, N. W.
WASHINGTON 7, D. C
new
Se¬
high
$245,112,493, an in¬
$71,764,592 or 41% from
year ago.
BOARD
vestors
OF
vs. June 30,
1954,
(excluding reinvest¬
of capital gain distributions
1955
periods)
$3,096,846.
American
to
rose
of
assets
net
$5,945,391
were
Selected
Shares at June 30,
$46,128,881
enual to
1955
share, compared with $32,109,526
equal to $7.55
1954.
In
a
share
addition
value
asset
to
on
the
June 30,
gain
in
share, a 50-cent
capital gain distribution was made
in January 1955.
Dividends from
of
Mutual, Inc., largest
In¬
mu¬
assets
peak
net
on
June 30.
1955
$28,437,000
of
of
assets
were
at
compared
$14,101,600
a
a
year
ago.
Total
sales
for
June
$1,647,700
compared
to
$862,600
for
Gross
1955
a
gross
sales
were
June
for
of
the
$7,425,892
last
first
year.
half
of
representing
jump of 210% over the sale's for
STREET
WALL
poration,
a
Investing
common
Cor¬
stock mutual
with
versified
York
City, has established offices
has de¬
dividend of
a
quarterly
17V2 cents per share, payable July
15 to shareholders of record at the
headuarters
in
New
in Boston at 140 Federal Street.
The
fund
recently announced
a
major policy and personnel reor¬
close of business June 30.
The ganization aimed at strenthening
dividend will be distributed out its
competitive position
in the
of the fund's net investment
in-, mutual fund industry. At present,
derived from dividend and
interest income.
come,
annual
This
to
report
net asset
value, which gives
effect
to
dends
totalling
the
stockholders.
the
deduction
$2.01
highest
divi¬
of
share,
per
reported in
ever
the 26 years of The Lehman
operations.
poration's
This
Cor¬
com¬
pared with $38.14, the correspond¬
ing net asset value at the end of
the previous 12 months.
Net
ordinary income for the
fiscal year ended June 30, 1955
amounted
to
$4,608,633 and net
realized profit on securities sold
was
$7,090,172,
comnared
with
$4,259,993 and $5,079,716, respec¬
tively, in the prior 12 months. Net
.unrealized appreciation
of port¬
folio securities amounted to $127,793,472
on
June
30,
1955,
as
against $82,542,300 the year be¬
fore.
Dividends
paid
fiscal
the
for
ended June 30, 1955 totalled
year
$2 46 per share of which $.99 per
share
from
was
ordinary
income
and $1.47 was from profit realized
the
on
sale
investments.
of
This
Economist Cites
the fund's net assets are well over
&
Coke
Company; 3.0C0 shares
River Company Limited;5,000 shares Eastern States
Corporation.
Additions
to
the
and
portfolio
Allied
included
Chemical
Dye Corpora- j
tion; 3,700 shares Hercules Powder
Company; 4,200 shares Southland
Royalty Company; 10,000 shares
Schering Corporation; [5,900 shares
St.
Regis Paper
Company; 500
shares
International
Machinese
Business
Corporation;
An investment research
tion; and
Company.
shares
Brown4
included
Sales
United
10,000
14.180
shares'
Gas
Corporation, leaving
70,000 shares in the portfolio, 10,-
<
Cash
♦
shares
160
The
National
Register Company, leaving 40,000
shares
in
the
portfolio;
5,000
shares Corning Glass Works, leav- ■/
ing 20,000 shares in the portfolio;
15,300 shares Merck & Co., Inc.,
leaving 50,000 shares in the port¬
folio;
3,700
shares
Johnson
&
Johnson, leaving 15,000 shares in
the
bia
special-4
take 'advantage
the
Emphasizing
the
Addressing
prised
audience
an
com¬
brokers and investment
01
dealers
meeting
Missouri
the
at
Athletic Club in St. Louis, Thomas
J. Herbert. Vice-President and Re¬
Fundamental
of
Director
tion,
N.
growth will result from an
way
life, and atomic energy.
Herbert explained
a
recognition of the
ions,
finally,
and
Other
of
characteristics
expanding
American
of
economy.
speakers
at
the
on
the
role
economy,
in
of
investment
America's
included
Eugene
associates of Mr. Herbert
cies
on
and certain
ment
Manhattan Bond Fund, Inc.
labor
substantial
50
can
I
Diversified Growth Stock Fund, Inc.
Company
the
me
prospectus
Keystone Fund of Canada, Ltd.
££
City
Prospectuses available
State
these
mutual
local
Address
even
investment
funds
through
firms,
or:
HUGH W. LONG AND COMPANY
ten
INCORPORATED
that
Elizabeth
3r
New
govern¬
his
In
the
research
being strengthened by
faster
rate
of
Jersey
of
the
PUTNAM
growth in
free
world.
course of invest¬
management
years,
^7/ie
is assured, and at the
remainder
ment
on
Vice-
tors, Inc.
the
unions.
growth of the Ameri¬
Reviewing the
describing
Name
an
the
Congress Street, Boaton 9, Masa.
Please send
moment is
as
over
the
past
FUND
J^JoAton
Mr. Herbert concluded
successful
management
dur¬
ing the period has been aggressive
management.
J.
both
Kidd,
Presidents of Fundamental Inves¬
however,
economy
O.
of
part
of
run,
Glenn
by unwise poli¬
organization believes that further
TAX BENEFITS
under Canadian Laws
The Keystone
long
or
or
the
A
and
man¬
expanding
be
interna¬
meet¬
ing, whose overall theme centered
Habas
upset temporarily by
un¬
recognition
pattern of economic growth could
tional incidents
a
and
new
by both government and labor
agement
that this
is
important business role exercised
the
Elizabeth,
Inc.,
problem
and
lasting eniema
for which there is no ready solu¬
the
Mr.
communist
deep-seated
J.,
of
Diversified Investment Fund, Inc.
of
necessity
constantly
world
of life.
search, the desire for a better
Fundamental Investors, Inc.
of the superb in¬
opporturi+ies available,"
speaker declared.
vestment
keeping in mind the
■•longer term business horizons, Mr.
ment of funds totaling some $400,Herbert said that "a belief in cer¬
0d0,000, representing the "mutual tain basic concepts has encouraged
fund investments of 95,800 people,
the aggressive investor to maincited five factors which give prom¬
tail) a high percentage- of his se¬
ise of a progressively expanding
curity holdings in common stocks."
economy replete with new- mar¬
These concepts, he added, have
kets, new industries, and new and
included
a
recognition that the
better products for^a better way
nomic
fully managed Canadian
Investment Company
seeking
long-term CAPITAL GROWTH
2,500
shares Crown Zellerbach Corpora¬
ist who contributes to the. manage¬
expanding population, decentrali¬
zation of industry, industrial re¬
ofCana da, JLtcl.
shares
7,003
&
in economic trends have failed to
Promising
Growing Economy
search
$6,000,000.
t
eystoneXund
Trans¬
Powell
declared that America's future eco¬
4%l
Gas
Company; 10,003 shares
R.
H.
Macy & Co., Inc.; 2,500
snares Puonc Service Company of
Indiana, Inc., 4.20% Conv. Pre¬
ferred; 9,300 shares Portland Gas.
anticipa'ion of short-term declines
Factors
Investors,
IW!
Tennessee
mission
latter amount has been designated
to
fund
Inc.,
equal to $48.47 par
4,626,856 shares, of
shares
000
portfolio; 17,216 shares Colum- ,
Broadcasting
System,
Inc.,
leaving 55,000 shares in the port¬
investment income in the first six as a capital gains dividend and is folio; 5,000 shares Dixie Cup Com¬
months totaled 13c a share com¬ taxable to recipients for Federal pany, leaving 13,000 shares in the
pared with 12c in the first half Income Tax purposes as a long- portfolio; 5,000 shares American
of 1954. Per share figures above term capital gain irrespective of Smelting and Refining Company,'
are
adjusted to the 2-for-l stock the length of time they may have leaving 15,000 shares in the port¬
held
the stock
of
The
Lehman
split in April 1955.
folio; and 20,845 shares Western
Natural
Gas
At
Company,
leaving
mid-year
common
stocks Corporation.
70.000 shares in the portfolio. Dur- >
Common stocks constituted 91%
represented 93.8% of assets. U. S.
Governments and cash 6.2%.
At of net asset value at the fiscal ing the final quarter of the fiscal
the 1954 year-end common stocks year end with U. S. Governments year, the Corporation disposed of.
its holdings of 5,700 shares Midrepresented
85%
with
govern¬ and net cash items of $16,784,575
Continent Petroleum Corporation^.
ments and cash at 15% of net as¬ representing 7.5%.
New portfolio additions during 10,500
shares
Colgate-Palmolive
sets.
the quarter
were - -16,000 - shares. Company; and 10.000 shares The,
EMLEN S. HARE, President of InThe Grand Union Company; 10,- Brooklyn Union Gas Company.*
stitutional Shares, Ltd., sponsors
of three general and two
single
industry mutual funds, reports net
folios that have gone defensive in
per
tual fund affiliate of Investors Di¬
Services,
was
stock outstanding, Robert
Lehman, President, and Monroe C.
Gutman, Chairman of the Execu¬
tive Committee, reported in the
$9 ^9
the 1954 first half,
DIRECTORS
clared
'
a
June 30 at
crease
a
*
was
ended
reached
Net
managed investment
gain
months
sales
Total
a
12
both
vs.
last year.
Inc.
curities Series reached
i*
in
capital
no
For the
30,
ment
long-
growth of income and prin¬
cipal.
$1,535,928 in
(dur¬
with
compares
the first six months of 1954
the
on
Lehman
1955
capital
was
at
Research
share
June 30,
on
$224,250,663,
SEMI-ANNUAL
to
group
selected
stocks
common
cause
diversified
a
Corporation
By ROBERT R. RICH
Thursday, July 14, 1955
...
Corp. Reports Assets
Are
Highest In History
Mutual Funds
j
Stocks for Income
Financiql Chronicle
"The weak cf heart
have faltered and investment port¬
Putnam Fund Distributou. Inc.
50 State
Stieet. Boston
Volume 182
Number 5446
The Commercial and Financial Chronicle
...
(195)
y
Scudder Issues First
Investment
Company Will
advisors.
Scudder
United
Fund
of
Canada Ltd.'s
first annual report covering
oper¬
ations for the year ended
May
31,
1955, reveals that the corporation's
net
value
asset
that
on
date
The report further discloses that
when
the
fund
began operations
on June 14,
1954, it received $30,000,200 in U. S. from the sale of
its
1,000,000 shares through
underwriting group headed
Lehman
Thus,
Brothers
net
$30 in U. S.
was
The
fund
holders
for
a
a
has
I,000,0CC
to
aration
will
curities
to
be
and
filed
increase
in
for
statment
with
the
Se¬
Commis¬
sale
proposed
common
distribution
to
the
■:_>d/:-1'
public.
Although the fund's share
-
redeemed
be
asset
in
at
at
time
any
may
net
at
value, they have been traded
the
"over-the-counter market"
prices
consistently above the
value, and, to date, no
asset
net
of
prep¬
shares
have
been
redeemed.
The
June
30, 1955 market quotations,
as
reported in the daily press,
were
U. S. $41.75 bid and U. S.
asked. Net asset value
$43.25
the
day
same
the
At
end
portfolio
U. S. $39.54.
was
of
May,
'
the fund's
invested
was
on
92%
in
stocks, 6.3% in bonds and
preferreds and 1.7% in net cash.
The
largest
industry grouoings
common
Metals
&
shares
issued
that
so
no
&
Scudder, Stevens & Clark,
lead¬
a
entire
of the
and
fund
have
available. In
are
more
1,000,000
outstanding
are
could
shareholders
be
satisfactorily invested,
existing
shareholders
would derive advantages from the
in assets An
increase
the form
of
opportunity for wider diversi¬
and
reduction
a
in
the
share operating cost
per
split
For
ing, currently amounting to more
than 6,500,000, there will be issued
a
like number to the holders of
record Aug. 4.
The
to
action
the
In
commenting
tinued expansion and
con¬
development
industries
Canadian
of
the
upon
and
re-
the fund's first annual
report to its shareholders stated:
"Canada's
rapid
economic pro¬
cources,
abundant sup¬
ply of natural resources, popula¬
tion
growth at an appreciably
gress, based on an
faster
States
than
rate
and
other
and
the
in
tion
of
governmental
of
encour¬
have evoked wide¬
comment
and needs no
emphasis here."
it
"However,
of
vigor
in
the
while
that
S.
U.
to
of the
fund
the
reduce
overhead
administration
of
the
share to each stock¬
holder, Canieron K. Reed, Presi¬
per
dent, said.
The
net
is about
$125 %
million, equal to
share, compared
$113,113,000,
or
$17.61
a
about
$19.32
with
a
share at the start of 1955.
when
it
is
fund's operations, common
prices in the United States
anproximately 32% in
contrast with a rise of about 17%
Group Releases
Industry Analysis
the
Group, Inc., sponsors of
funds of Group Se¬
mutual
curities, Inc., has released up-todate revisions of its 1955 earnings
figures for 15 separate industry
groups.
steel
gain for
29% ove^
1954, with automobile and mining
at 19%. Substantial improvement
industry,
at
increase and electronics and elec¬
the
Stock
Toronto
trical
railroads
for
seen
with
equipment with
a
17%
13%.
De¬
indicated
spite the current cigarette-smok¬
Exchange
ing controversy, the tobacco indus¬
Index of Industrial Stock Prices."
try should' show an 8% increase
in earnings over last year's figures,
according to Group's estimate.
Music Stock
;
Ten thousand shares of common
stock
of
Hammond
have
pany
A
of
Dollar Mark
by
the
organ
announced.
leading
useful
Cross Billion
Com¬
Stanley M. Sor-
President
company,
analyzing industries whose
are normally considered
for
long-term growth of
principal and income, Group con¬
securities
Growth
Investors
Stock Fund, Inc.,
ensen,
Organ
purchased
been
Massachusetts
In
I. D. S. Assets
Buy
Total net assets of the four mu¬
Diversified
of
Services,
.
the
exceeded
manufacturer
managed by Investors
funds
tual
Inc.
have
billion dollar mark
by more than $6 million, Joseph
Fitzsimmons, President of IDS,
M.
church
organs,
made
dividend
home
and
mond
has
ments
for
20
years.
A
dar
Ham¬
calen¬
consecutive
disbursement June
10 was the 57th consecutive quar¬
since
terly
payment
From
1S36 to 1941 dividends
on
r,
June,
1941.
ended
March
to
31,
1955,
amounting to $3,070,533, equal to
$4.11
share,
a
in its 27-year
The
a
a
highest
a
net
year ago
profit of $2,499,409,
Investors
Investors
Selective Fund,
and Investors Group Cana¬
Ltd. had combined to¬
Inc.,
Inc.,
dian Fund
$1,006,297,677.
tal net assets of
above
funds
three
first
mentioned
$977,810,540, an in¬
$119,239 320 for the first
were
crease
of
1955 over the
six months of
1954
year-end figure of $858,571,220.
$3.25
or
Investors Mu¬
tual, Inc. had net assets of $826,increase of $94,333,046
31, 1954 figure of
an
the
over
Dec.
showing
as
ol* J
high
nun
me
30,
figures
l>rj
Investors
1955 shews record
in
total
June
58%
assets,
were
$1,501,-
compared with $949,561.88
30,
for
The
net
of stockholders and shares
outstanding.' Assets
469.65
reporting
1954,
or
a
net
gain
of
the period.
net
asset
value
of
$21,249,738,
400
share
$20,990,338
investors
had
June
30,
Gains
June
Mutual,
to
$12.56
on
30, 1955, an increase of 37%.
June
increase of $259,-
net
asset
Det.
on
are
far
as
concerned.
able farm
While
the
with
area
irrigation load.
post-
company
r,ni
substantial
a
Thus electric
rev-
%b™t 33% resi.d!ntiai
S industrial.
1
.c<?mmercia* an(*
5%
•
y
4.
The
company has several subsidiaries:
Wisconsin
Michigan
Power Company, Wisconsin
Nat-
Company, and Milwaukee
Railway & Transport Company
(transit interests
are now small),
System serves an estimated
population
of
1,634,000 in 386
The
12,546
37
arate
areas
miles.
square
in
Wisconsin
sep¬
and
an¬
principally in the
upper
peninsula of Michigan, the three
being fully interconnected and
integrated. There are two rela¬
tively small gas distribution syslocated
service
gas
within
stocks
are
"to
seen
total
net
figure of
in
position
assets,
in
the
as
of
performance
over
Inc.
an
had
recent
Among the cyclical groups, rail¬
road stocks still appear
the
to
ment,
attractive
Group Securities manage¬
while
considered
the
steels
worthwhile
are
still
holdings.
While "it may be a bit late
commitments"
new
in
for
building
stocks, mining stocks "appear not
continue
tinue to
to
act
as
fol¬
ing
mobile
of
increase of 23,000
long period of
a
over
signs of grow¬
interest
stocks -".give
developing
either
about
in
Industrial
a
no
strong
evidence
trend
direction at this time."
in
$41
million
purchased from another
com-
some
of the
country's richest farm lands
the State's principal IndusThe central
contains
lands
and
leading
construc-
bapacity of
scheduled for addition by the end of this year and
another 120,000 kw in the following winter. This will bring total
capacity up to an estimated 1,~
373*000 kw, or 115% more than in
120,000
kw
is
1947.
Capitalization
^as
lg54
the
at
of
end
follows:
as
MUIions
Percent.
—
$133
48%
Preferred Stock—
34
Funded Debt
Com. Stock
139
$276
Total.
The
13
109
Equity
100%.
equity ha?
in 1946 to
stock
common
value from
district
farm
.prosperous
of toe country's
mills, the northern
noted for i.ts timber.
some
stock
25%
from
Four
$13.85 to $23.13.
offerings of common
subscription
also
for
New generating
tion.
39% at the end of 1954, and book
The southern area includes
1949-54
during
far
were
over-subscribed,
The
need
interpretation,
some
inc)usi0n of provisions
c|ue t0 jbe
for
state-
earnings
company's
menjs
contingent losses in 1951 and
paper
prjor years, and non-recurring
tax savings
in recent years. As
adjusted by standard & Poor's,
tional facilities.
share earnings jumped from $1.24
Wide diversification of farm ac- jn 1945 to
$2.05 in 1946, due to
tivity contributes to an1 average substantial' savings
in
excess
income per farm family which is
profits taxes (repealed after the
higher and more steady than in war).
Share earnings have remost States.
Although Wisconsin mained within a narrow range of
portion
iron
is
ore,
water
and
power
recrea-
is
noted
for
dairying and the
growing and processing of farm
crops, other activities range all
the way from poultry raising to
fur farming. Electricity plays an
increasingly
important
part
Wisconsin farm operations,
as
production
the use
of electrical equipment in cleanrequire
mg and cooling processes.
search farm.
Industrial*
waukee
eludes
a
a
in
metropolitan
the
area
Mil-
in-
the
ded
great
number
Lawrence
planned
of
seaway
project,
for completion by 1959.
result in a
greater
utilization
of
Milwaukee's
fine
harbor facilities.
The
1950-54.
Wch
>
those
ha
e
income in
Excluding this item
'earnings
wouid have been
The common' stock has been
selling recently around 34, and
based on the $ 1.50 dividernd, the
yield would be 4.4%. Based on
share profits exclusive of nonrecurring tax savings, the stock
is selling at 15.8 times earnings,
which is about average for all
electric utilities,
;
WalLw Hirprfnr
The
VYaiKer L/ireciur
V
metropolitan
use
of
room
air-
of
electricity for
Company
in progress.
is notable for its
residential rates, which last
Man-
Jr.,
aging Partner of G. H. Walker &
Co., investment bankers, and R.
James Foster, a Partner of Rand
c0., investment bankers, have
elected directors of Chemi-
&
been
cai
Enterprises, Inc.
Director of
Co., WalkerCo., Zapata Petroleufn
\yaiker is also a
Wegt
Bush
0il
Sugar
Indjes
Corp
Investing Co.
and city
a Partner
™>iam S. Kies Jr
in the firm of W. S. Kies & lo.,
has
also
Director
and
counselors,
elected
a
chairman o{ the
house-
The
company is making special efforts
to promote more adequate wiring
so as to permit better use
of apare now
Walker,
H.
George
been
low
had been es-
$2.15.
investment
The
reduction due
settlement of
reserve
a
ing increasingly popular, and promotional
activities ■ to stimulate
use
the
tablished by charges to
conditioning equipment is becom-
heating
tax
to
tax liabilities for previous years,
f
Mr
Milwaukee
is
area
.
months
12
1955 have been
31
$j 028,409
principally
'30s,
smaller
should
This
March
the
reported at $2.37 in the financial
se£vices but this figure included
expression
The
area's foreign trade is substantial,
and should be enhanced by the
St.
for
Earnings
number of old-line firms
anti-dating
plus
business
that figure in later years.
in
in-
iC« fo, .y
a™rP.anra usf
kwh
High standards of
the
sees
Machinery stocks, although auto¬
206,000
share¬
report
public
1955, Investors
During 1955, Wisconsin Electric
Power
and
subsidiaries
spent
increased
cmfstructed°°durhig ^period
well."
give signs of approaching
upturn" after
The
plant?. In 1954, Wisconsin
Power System required
only 11,428 Btu per net generated
kwh, compared with the U. S.
average of 12,200.
Electric
natural
enjoying a substantial
to be too far advanced in their
building boom, and in Milwaukee
favorable price action and should
an
steam
firms added in recent years.
relative inaction.
six-month
were
to
to
months.
the number of share¬
during
appear
improve,
whereas both food and utility is¬
sues give little indication
of any
departure
from
their
average
a
Railroad equipment stocks "con¬
1955, of $28,487,137.
On June 30,
holders,
Merchandising stocks
of 2,549 kwh. Low rates are permittecFby the company's excellent
generating efficiency in its large
electric
Pany.
trial centers.
was
use
the
In cobe in an attractive pricg position," operation with the State univer¬
despite
recent
backwardness. sity and other Wisconsin utilities,
Among
industry
groups
useful Wisconsin Electric participates in
for relative stability of principal a long-range program to develop
and income, tobacco stocks "give new ways in which electricity can
early signs that investors,are rec¬ be used to make farming easier
ognizing their substantial values and more profitable. This includes
and generous return."
operation of an experimental rebe
Average
2,919 kwh,
compared with the U. S. average
residential
supplying
area,
of 6,697
Petroleum
dential average of 2.69#.
The
other
terns
averaged only 2.21# per kwA,
compared with the national resi-
year
counties; of
territory served includes two
milk
again pursuing their favorable
long-term trend."
31, 1954.
pefiod under review
lows:
1954
an
Investors Group Canadian Fund
Ltd.
increased from $9.19 per share on
30,
the
over
holders
per
the
90% electric,
heating and mis-
the
City of Milwaukee,
ranking eighth in industrial producHon, it also serves a consider-
be
the 1954 year-end
$105,332,941;
of
Selective Fund, Inc. had net assets
SOVEREIGN
cellaneous.
Chemical, and electronics and
electrical equipment stocks,
ac¬
cording to the report, "appear to
six months increase of
a
$24 646,874 over
figure
share.
caution"
"advise
to
Aviation stocks
as
price
On June 30, 1955,
$732,247,941; Investors Stock Fund,
greater Inc. had net assets of
$129,979,815,
when it reported
during
were
H1HU
580,937,
history.
company's 1954-55 earnings
approximately 23%
were
than
the
were
1955,
30,
Mutual, Inc., Investors Stock Fund,
the
Hammond recently reported
year
June
tinues
The combined total net assets of
stockholders that net earnings for
the
of
As
were
annual basis,
an
disclosed.
pay¬
period)
gas and 2%
and
It estimates the largest
the
is
by
8%
cojmpanies.
1954
million (an in-
$88
94%
Michigan covenng
advanced
as
war
about
stock
stocks,
of
of
crease
communities mid.
tributors
realized that during the first year
Canadian
utility
revenues
ural Gas
Income Fund
assets of
To show how the current pros¬
corresponding index in Can¬
ada declined by only
1%. This
comparison takes on added signi¬
ficance in appraising the value of
the
tend
perity is reflected within various
segments of the economy, Dis¬
the
securities
electric
investors,
thus increasing the size of the fund
as
production in 1954 fell 6%% be¬
low that of the preceding year,
Canadian
Wisconsin Public Electric Company
Wisconsin Electric Power is the
largest of the three Wisconsin
among
industrial
Canadian
the
distribu¬
the wider
shares
economy,
the
of
of
continued
be noted
may
indication
an
price
tax
agements,
spread
By OWEN ELY
United
influence
the
offering
shares, which, it is believed,
will assist
Utility Securities
serves
in order
taken
was
the
reduce
and
.A
.
.
oustand-
share
each
Public
1955.
the United Income Fund
on
shares.
cost
the fund.
of
June 30,
on
DIRECTORS of United Fund, Inc.
have
authorized
a
100%
stock
the
and
an
year-end figure of 183,Investors Stock Fund, Inc.
had 34,000 shareholders as against
the Dec. 31, 1954 figure of 28,700;
Investors Selective Fund, Inc. had
8,000 shareholders as against 7,000
six months ago. Investors Group
Canadian Fund Ltd; had 19,200
and
the judgment of the management,
the
proposed additional capital
in
Stevens
the
industries
present the
been
Clark
Ltd.,
a
Canadian company, affiliated with
.
outside
sources
Canadian
common
of
der,
of
At
Mining, 19.7%;
Petroleum,
15.6%;
Construction,
II.9%; Paper, 9.9%.
;
The fund is managed by' Scud¬
were:
been
their
resources.
the
from
shares
is
additional 250,000
shares
ment
aggregate
stock¬
have
deriving
issuers
States, concentrated
in
companies reflecting the develop¬
fication
Exchange
the
from
ago.
shares
There
income
to
1,250,000
covering
the
share
registration
a
which
sion
York.
per
year
common
stock.
by
statement asking
authorization
common
the
New
mailed
proxy
authorized
of
of
value
asset
to
was
$37.41. On July 11, 1955 net asset
value was $40.31 per share.
Investments
limited
1954
000;
ing American firm of investment
-
Issue 250,000 Shares
In a Lehman Underwriting
~
the
Report
35
,''
Executive Com-
r^minai
mittee of Chemical
FnWnrise*
p
,
a Director of
Barker Brothers Corp., Michigan
Inc.
Qag
num
He
is
utilities
Alloys,
also
Co.,
Inc.
Acme
Alumh-
and
Green,
Mountain Power Corp.
36
The Commercial and Financial Chronicle... Thursday,
(196)
Continued
from
Western
6
page
anything
that
war—is
dependence
our
Their gains have
of all-out
case
restrictive
less
We must look to other countries
in
markets
lor:
volume
100% of
tin, mica,
our
95% cf
cobalt.
67% of
our
wool.
65% of
our
bauxite.
55% of
our
lead.
45% of
our
concern is to pre¬
their hard-won freedom and
copper.
in
Even
time
for
of
these
To
want
I
two
and
peace,
the
de¬
our
rise
as
port
creased
shall need to
and
more
of
more
concerned
that
grants
•occasion
have
we
fear
to
for
trends
by
running
1960
a
be
balance
of
i
p p r o x
t
m a
e
1
$1 xk
y
billion.
The net result could be that
would
gold
be
forced
just
other
as
we
husband
to
our
nations
have
had to husband theirs.
This
one
that
independence.
as
is
East,
country
any
dependent
perhaps as
in the Far
the
sided
with
nation
new
economic
its
for
((leavor
Communist world, and this means
Two
world
years
ago,
in 1953, the
price of rubber took a dis¬
level.
low
As
the
result
a
especially
irom
and
Indo¬
not
States
traders'
market
a
attention
which
back
will
be
after
a
duction
to
is
which
the
outside
willing to buy and
world
and
primarily
they
as
portant
relate
effects
on
There
builder
a
of
national
vitality.
It
is
almost
indisputable
nations,
thwarted
with
soon
us,
kets,
in
turn
their
that
Our
trade
to other
markets
even
that
mar¬
within
the
her to
Marshall
Plan,
We shall
merchandising system
this
country that
blue
cheese
pressing their market,
the
imnorts
of
that
quota
a
The
Danes
Baltic
us
Sea
to
as
use
for
"purchases in West Virginia to coal
purchases
from
Communist
'Poland.
needs
buys
Assistance
jc*u 6 * «*»» u,
France, Italy and other countries
of
Western
Europe. By doing so,
we may very well have
prevented
these
nations, particularly those
on
the
continent, from falling
der the domination of Russia.
that I offer
trade
to
establish
trade
agreements
building
Japan while Japan
cotton.
is
as
the
an
other
of its declaration of
a
lem
years
consider
its
not been
ences
is
up
our
time
that
the
and
The
proposed
hands
The
to
ac¬
gap" prob¬
is
of
made
throw
differ
from
not
every
discouraged,
have
As
the
far
as
that
so
field
to
requiring
is
tal
'
war.
from' 350
i
so
necessary
required
ment in
Much
?■/
?'
operating
pro¬
mainly by
government
for
guaranty
or
loans
in
of
the
corporation's
pro¬
would consist of investment
gram
debentures in
aid
order to
the
development of specific industrial
without
projects
trol
exercising
con¬
the organization issuing
over
the
debentures.
The most recent guaranty
which I
pro¬
also
am
loss
bill,
if
enacted
authorize
provide
guaranty
on
exports
against non-payment resulting
certain
risks
The
bill
sion
would
now
of
admin¬
guaranty-
foreign nation and
a
pro¬
a
of the ele¬
one
missing for the exten¬
and
more
better terms of
private financing of exports.
The "political" risks proposed
be covered
would
include such
confiscation,
as
expropria¬
tion and
requisition; hostile action
ranging from civil strife to fullscale war; and governmental ac¬
convertibility of
currencies into United States dol¬
lars
which
or
improves licensing
requirements,
quotas
or
em¬
bargoes.
Note
carefully
troduced
the
bill
in¬
as
by Senator Fulbright is
"political"
insurers
risks
have- entered
covered,
guarantors
or
private
will be
inclined to provide whatever
more
complementary commercial credit
coverage
porters
may
The
be required by
A
with
envisaged
program
is
a
one.
government corporation
new
a
ex¬
their bankers.
or
self-supporting
States
provide
supplying
credit risks. It is felt that with the
also
the FOA guaranty
applies only to limited
where
political
a
Opera¬
Foreign
maintain his invest¬
projects abroad for mini¬
United
of
nature.
Moreover,
areas
corporation to
not a proposal to provide guaranty
against the usual commercial
to
program
on
law,
United
new
a
States Government
into
physical
or
under this concept
the beneficiary is
but
member,
a
16.
would
of
five years.
to
the
comparatively small capital
of $10 million would be
organized.
It would have authority to borrow
into specific agreements on a gov¬
up
ernmental level.
States Treasury if needed for cor¬
Finally, it guarantees only
against risks of expropriation
non-convertibility.
In
or
to $50 million from the United
activities.
porate
anticipated
will pay
addition, the whole program
of
fees
is temporary, as authority to issue
guaranties will expire
June 30,
when
1957, unless extended.
a mutually
foreign capi¬
if their country is
on
that
obvious
is
It
guaranty
program,
as
the
FOA
good
as
it
is, offers inadequate assistance to
the greater promotion of commer¬
of
cial
export trade.
Apart
Communism
for
Janpan and Indonesia as
examples of many other countries
of Asia, Africa and South Amer¬
ica, that require recognition on
our
part of the
importance of
trade policy in the struggle against
for its
coveries
on
maritime
ance
and
aviation
under limited
foregoing
States
agency
insur¬
conditions, the
the
are
programs
only
programs
United
directly
influencing the export trade.
4
In
Bank
addition,
for
the
International
Reconstruction
and
De¬
: velopment, through its operations,
.
i
.<
■
' t • ^
i > f
own
activities out
from
exporters,
investments,
on
on
the
However, it is
corporation
the
assets
and
taken
claims
guaranty
re¬
over
are
paid.
The
new
corporation
guaranty
would be allowed great flexibility
in working out details as"tor the"
type
Federal
from
that
collected
income
the
...
an
by the corporation.
periods ranging from three
mum
handouts;
.
in¬
is
property
investment
an
investment
of
opportunity
dictatorship.
against
[former]
isters
Policy in Combating
totalitarian
protect
Administration
tions
an
cite
Bank,
by
citizens warehoused
program,
provide a decent standard
living for all its citizens.
Trade
to
con¬
to
pro¬
administered
Export-Import
The
they
to
I
of colonial domination by a
11;
no
an
trade and to attract
basis
some
damage.
to broaden the base of their world
beneficial
give
are
Congress,
abroad
Like most Southeast Asia nations,
the Indonesians want
they do want
Congress to
American
intelligent and enlightened Amerisan economic foreign policy to
help the Indonesians, and other
under-developed areas all we can.
but
surely
you
example, the insurance
tended
like
China.
out it is up
af¬
Bank,
be
to
bank
any
bank
central
items
under Public Law 30 of the
the
themselves.
Indonesia
on
exporter has
83rd
this is a long, way from
happening. The best evidence to
support this is the fact that Indo¬
nesia,
desperately needing new
markets as she does, has faithfully
fulfilled her pledge to the United
Nations that
she
will
not
ship
strategic raw materials to Red
From here
or
gram
new,
nothing better than to see us for¬
sake the key nations of Southeast
come
in
the
tion that restricts
For
would
0
Finance
International
cedure
greater
a
trade.
respect
by
not
Communists
the
would
from
de¬
a
relief.
Asia. They want Americans to be¬
can
this
In
despair
in
its
great,
thus far has
International Fi¬
filiate
This
control.
no
struggling under¬
developed nation such as Indo¬
nesia experiences difficult times.
a
long-range
oe
Corporation,
June
that has
"dollar
need—for
a
export
our
experi¬
must
we
to
fully felt.
familiar with the attempts already
Americans
potential
trade
nance
Financing
Unquestionably, there
Standard-
recent
in¬
ex¬
medium-term private financing.
of
„
for
or
and
program
International
The
to
these
bank
on
which the investor
point
an
heartily favor the
effect is indirect and
pletion of a new bulk goods plant
Palambang for marketing gaso¬
line,
kerosene,
and
high-speed
from
be
loan
Corporation
during the post-war period is
inadequacy
of
shortand
the
Vacuum Oil Company of the com¬
our
independence,
pivotal nation in the cold
r»-Y-inycrorj
j
to
of Short-
One of the factors
centuated
nation
Indonesia, which this August is
celebrating the tenth anniversary
is
guaranty
Medium-Term
at
example of the
importance of trade policy to
foreign affairs.
un¬
•
that
for
our raw
Indonesia
Since World War II, our coun¬
try has gladly assisted in the eco¬
m
markets
from
example, Indo¬
nesia may, through the sale of raw
rubber to us, be able to
buy tex¬
Abroad
recovery
but
broad trade relations. Under such
tile goods from
nomic
own;
multi-lateral
agreements,
Economic
our
excellent devices for
are
S.
our
imports
Multi-lateral
air
; bases, and, deprived of American
dollar exchange, turned from coal
U.
some
goods.
of her
markets in Asian countries.
islands in
sites
buy
have
legislation, markets can be found
elsewhere for Japanese goods.
particularly
I
ments
agreements authorized under
on
was
thereupon cancelled
permission for
'the
surplus
have
not
with
Through
established.
-
Japan's
we
country.
de¬
product
that
mean
need to
need
flooded
imports
were
absorb
we
later,
complaints by cheese inter¬
in
to
and
products to sell her
especially adopted for sales in the
Danish
one
will
induce
the side of the free
on
While
financing to finance
A chief diffi¬
culty has been the danger of un¬
foreseeable
political
risks
over
The
as¬
will
Bank
for United States goods
international
draw
there is no
proceeds of
the
ternational
of
cerned,
blue cheese
of
be
consideration
needs,
stay
to
ests
policy must
give
This does not
we gave to Denmark $1
million for the establishment of a
upon
this country
world.
for
example,
United States. Several years
those in
trade
will
Japan's
the
Communist bloc.
Under
are
who, I fear, do not quite under¬
stand the importance of Japan
being able to sell in our markets.
They grow unduly alarmed over
a
slight increase in our importa¬
tion of Japanese goods. Yet, there
is no country to which it is more
important that we demonstrate
patience and statesmanship.
our
military, political and
economic relationships.
The
vitality of any nation's
ecpnomy directly affects its politi¬
cal and military strength. Sound
is
trade with Com¬
on
munist countries.
our
world-wide
trade
embargo
being. Equally im¬
their
are
to
particularly those included in
the
far, I have mentioned the
importance of imports and exports
domestic well
persuade them to reach agree¬
on a wide variety of goods,
ments
So
that
gram for
the
private business
a
services.
grants
interested in these pro¬
mand—and
of
on
international
to
government level
a
on
Moreover,
spent
growth
trade
Act; and various programs
assist underdeveloped nations.
are
level.
self-supporting system of private
announcement
led
bank loans
diesel fuel.
very
Chinese Communists
for.
pay
year
has
This
other nations.
and
us
Inadequancy
the
all
moment,
the
are dangling
inducements before the Japanese
this
more
is located.
ect
posal, and the one in which you
are
understandably most inter¬
porters — that you are most di¬
rectly concerned, and it is about ested, was introduced by Senator
this area that I now wish to make Fulbright, Chairman of the Senate
Banking and Currency Committee,
a
few remarks.
to
of capital goods and farm produce,
but all the surplus American pro¬
At
promote
—especially the
Moreover, t h e5< confidence of
American capital investment has
just been given solid proof by the
to emphasize the need for
only maintaining our exports
—every dollar of them—not only
several
to
loans; off-shore procurement;
of the
Trade
Agree¬
You
were-
semi-war nature.
it
never,
has
programs in¬
by
not
or
Congress
years,
or central bank
in which the proj¬
government
of the country
impact
naturally led
resentment
some
-serves
whether
1960
limita¬
ments
to
the
the
grams
because
you
and
your
United country have a stake in any effort
States exporters; and this resent¬ to establish a growing trade and
sound
trade policies.
ment, fanned by Indonesia's polit¬
Another type program on which
ical opponents, led to a campaign
whose theme centered upon the Congress has already taken some
action and is now considering new
charge that the Indonesian econ¬
relates
to
the
en¬
omy was headed for bankruptcy; legislation
that
foreign investment in the couragement of venture capital by
country was too risky for Ameri¬ providing guaranties to investors
and exporters. It is with this area
can
capital; lastly, the inevitable
restrictions
These
the
of
under its charter,
be guaranteed by
such loans must
International
extension
area.
to
in coun¬
members
are
surance
within
A few such programs are
uonar
uje
recent
between
nesian
Government
placed
stringent embargoes against im¬
ports,
that
loans
long-term
bank. However,
en-
we
unfortunate
some
tended
tumble, and consequently
Indonesia's foreign exchange hold¬
ings dipped down to a dangerously
rewarding
forced austerity.
in
a
trade orbit.
established
astrous
just selling to the Communist
civilian goods, but also
those
durable items of war or
true
them
on
tions, but it is basically sound.
In
countries
prediction,
/
comes
keep
to
has
It
tradi¬
tional exports.
charge that the Communists
recognized
beneficial basis
free world
base,, without losing
markets
important
extend
can
rather than
mutually
almost
dependent
economy
the
entirely upon certain world-wide
To help to do so, the Congress
raw
commodities, especially rub¬
ber. The problem which tne na¬ has just extended the Trade
tion now laces is how to diversify Agreements Act for three years.
its
It
for development projects
are
pres¬
Our welfare demands that
lop¬
a
strongly to
Communist
constant
sures.
foreign
upon
from countries
Some of these countries
under
Years of foreign rule have
trade.
tied
not
are
West.
Indonesia's economy,
much
to promote
indirectly helped
world trade.
tries
moments ago, come
fro*d the very
end of the war the important part getting stronger.
Fortunately, events of the past
that Japan could play in giving
10
months
have
done
much
to
stability to the Western Pacific
alleviate
the
critical
situation.
area
and, indeed, to the whole
With an upturn in the price of
world, if she could be kept on
rubber,
the
Indonesian
foreign
the side of the free world.
It is elemental that Japan has exchange holdings are $110,000,000
above last year's crisis low, and
to
trade
to
live.
If she
cannot
a
consequent lowering of the im¬
trade
with the free
world, she
necessarily will trade with the port restrictions is turning United
United
actually
its dependence on ex¬
commerce.
We
and
negative
a
trade of
lies in
ternal
countries
the
—
United
the
States. Its central economic prob¬
experts
will
in
$1,850
with
pared
no
situa¬
more
other
on
materials
raw
States
and
—
reliance
more
the
and
Europe
is a country about the
size of California, with 87 million
inhabitants. Only 16% of its land
is arable. In 1953, its per capita
income was only $190, as com¬
the basis of
on
the
in
markets
to
Japan
lem
trade
some
now,estimate that
recent
States,
Commonwealth of Nations.
tion lor ourselves.
However,
access
by
impaired
being
is
limited
our
had
similar
a
world.
are
United
bridging of the deficit with loans
and
there
country
the dol¬
about
of other countries and
and politi¬
free
the
of
the
disturbing signs
that the economic stability of that
production.
so
in
keystone
a
planning
But
in¬
our
is
Pacific to the military
cal
ex¬
increasing reliance upon
the importation of essential goods
raises
a
possibility about which
there has been little discussion, at
least publicized discussion.
During postwar years, we have
been
haul to a great extent
leadership in trade poli¬
long
Japan
This
lar gap
welfare—
our
cies.
increases.
we
to
independence depends, over
upon our
for these increased im¬
basic to our national needs
security,
whose
nations
many
vital
is
briefly just
mention
to
the
of
freedom
pay
ports
Western
the
of
true
world.
items will
population
our
is
serve
left
nations
whose
mand
being
European countries is also true of
in
other
parts
of
the
our manganese.
our
large
the
production
our
own
our
Europe.
What
99 % of our nickel.
to
for
return
of
in
sold
asbestos & chrome;
93% of
been startling,
access
camp.
has
'
the
few
they can be maintained and
strengthened only if we permit
lor many crucial items.
ports
and
fledgling nation is
Many of our critical and strate¬
trying to follow an independent gic materials, such as tin, cobalt
attitude toward the cold war. Its and others that I enumerated a
but
im¬
on
establish
policies that, prevent other
being forced into the
Communist
peoples'
in
buy to sell,
we
also
must
West.
International Trade
survival
only must
we
follow
foreign
like
looks
but
nations from
Hence,
of
Not
Indonesians
suspicious of
interference whether irom East or
America's Future in
ter
the
power,
understandably
are
July 14, 1955
of guaranty contracts
to be
offered, types of goods and serv¬
ices to be
risks
to
included, percentages of
be
assumed
by the
ernment and fees to be
The
gov¬
charged.
-
corporation would also
be permitted to borrow from the
United States Treasury such addi¬
tional
new
funds
as
would
from
to time be needed to pay
time
approved
Volume 182
Number 5446... The Commercial and Financial Chronicle
claims
under guaranty contracts.
borrowing authority is one
last resort to be used only after
Continued
from
This
of
all
the
of
reserves
significant
that
fact
maximum
the
envisages
the
of
use
is
bill
the
the services
privately-owned
surance
all
in¬
I
programs
that
encourage
industry
have already
in
The United Kingdom, Canada,
France, Western Germany, Switz¬
erland, Belgium, the Netherlands,
Sweden, and Japan all offer ex¬
port guaranties
July
commercial
risks..
and
such goods.
This bill would
com¬
in accord with the objec¬
tives of the bill.
bill
into law,
made under the law
based
are
complete
on
government's role in
the impediments
enterprise.
private
It is your
zens
and
help
point
free
responsibility
business
as
the
as
citi¬
leaders
to
to the most
effective cooperation between
government
and
business.
This
do
way
can
The New York Board
in
business dropped
and congratu¬
The
and
expansion
sound
now
that the
steel and
auto
had
industry
and
adequate trade
policy is a route to a healthier
economy at home, and a highwav
friendlier and
more
The
steel prices
new
of $7.35 a net ton.
peaceful
an
are
increase of 5.8%, or
an
The wage increase that brought
of 15 cents
average
111. —Donald
E.
the
trade
an
average
Salle
Street,
105
announces
South
registered
specialize in. mutual
women
careers
in the
curities
and
business
are
Grace
based
BOSTON,
now
an
Planning
ingots and
of
>
b"
i
*
*
'
#> j
.
as
.
month
a
A
year
capacity
lower
of Jan. 1, 1954.
'.if
1
^
•*
z.»'
In
year
a
$100,000,
off to
casualties fell
13 from 20.
manufacturers
rose
92
to
the week centered in retail trade
from
127
and
in
commercial
service,
While wholesaling held at 18, the toll among
to 52 from 44 and amon^ construction con¬
More concerns failed tnan last year in all
tractors to 29 from 22.
retailing and service.
lines except
reported less failures, including the Middle
73 from 83, the South Atlantic, down to
22, the East North Central, off to 28 from 36 and the
Pacific States with 53 as against 59. No change aooeared in three
Five
regions
Atlantic States, down to
17
from
regions, while the New England States showed the only upturn,
to 18 from 12. Four regions, the Middle Atlantic, South Atlantic.
East North Central and
were
Pacific,
were
above
while three
a year ago,
below, and two unchanged.
.
Wholesale Food Price Index Last Week Touched Lowest.
further sharp dip in
,
the Dun & Bradstreet wholesale food
wholesale
cost
last week
were
and steers. Lower were wheat, rye, oats,
lard, milk,
corn,
beef, hams, bellies,
coffee, raisins and hogs.
<
represents the sum total of the price per pound of
foodstuffs and meats in general use and its chief function
raw
general trend of food prices at the wholesale
level.
Commodity Price Index Closed the Week
was
96.0% and
capacity
than
-
*
'
'.. ■
■<*.<
.
•
<
.
trending mildly
corresponding date
in
\
^f 4.
'*
f!'
Further Contraction the
more
week
in
year ago.
leading grain
distant wheat
growers.
Cash wheat prices were
,
weather conditions over
i
t
''
.
<>t
Week
distributed by the electric light
industry for the week ended Saturday, July 9, 1955,
somewhat easier as the harvesting
of
nearing completion in the Southwest.
Cash corn markets were active with prices moving higher- for the
week.
Receipts in the Chicago market totaled, 904 cars^ slightly
below the previous week but well apbve a year ago. Crop and
the Winter wheat crop was
1955.
i
.
•
the
wheat
pro¬
in
The
week.
a
markets were mixed the past
deliveries showed strength early
following the ratification of marketing quotas by
Fluctuations
,
^
The amount of electric energy
power
$5,000
upward most of the week, the daily
index, compiled by Dun & Bradstreet,
Inc., turned sharply downward to close at 272.28 on July 5. This
compared with 272.68 a week previous and with 272.11 on the
the actual weekly production
The operating rate is not
was
Past
and
the rate
ago
ago
G.
Inc., 68 Devonshire Street.
•
Remaining slightly ber
or more dipped to 165
less numerous than last
contrast, small failures, those with
up to 39 from 37 and exceeded the
ago. Twelve businesses succumbed
as against 23 iln the preceding week.
of the decline during
All
After
11, 1955, equivalent to 2.for castings as compared with
steel
with Investors Plan¬
ning Corporation of New England,
the
wholesale commodity price
percentage figures for 1954 are based on annual capacity of"
124,330,410; tons
-
in
204
level, failures were down 2% from the 208 in 1939..
group
Wholesale
annual capacity of 125,828,310 tons as of Jan. 1, 1955.
because
to
Slightly Under Level of Prior Period
Electric Output Shows
jMass. ^ Harold
size
this
where
$10 and electrical sheets $17, concludes this
2,316,000 tons.
comparable
I Special to JThe Financial : Chronicl£>
occurred respectively.
175 occurred.
is to show, the
placed at 1,534,000 tons, or 64.3%.
was
The
Lash is
on
duction
May
May Hartigan.
With Investors
in
'
For the like week
se¬
■»r-'
r
21
31
industry's ingot production rate for the weeks in 1955 is
The
who have
made successful
139
liabilities under $5,000, edged
(revised) and 2,073,000 tons a week ago.
85.9%
The
two other Blair
tons
233,000
declined
The index
capacity for the week beginning July
to
funds.
when
year
sugar,
capacity of the entire industry will be at an average of 92.5% of
Mrs. Gen¬
representative
!
weekly.
failures
industrial
and
higher than in the comparable weeks of 1954 and 1953
and
Higher in
erating rate of steel companies having 96.1% of the steelmaking
La
evieve Henkle has been appointed
a
196
cocoa
an
The American Iron and Steel Institute announced that the op¬
Chicago office of Blair &
Incorporated,
Co.,
were
when
jthem was 7.5%,
up
bars went up
carbon
Nichols, Vice-President in charge
Holiday Week But Exceed
price index brought the July 5 figure to $6.33 to equal the 1955
low touched on May 31.
This level represents the lowest since
April 7, 1953, when the index stood at $6.32. The current number
reflects a drop of 1.4% from last week's $6.42, and compares with
$7.22 on the corresponding date a year ago, or a decrease of 12.3%.
price raises the average to $7.35, some of the
much less than that and others much more.
carbon sheets rose $5.50 a ton, while cold-finished
Hot-rolled
In
Point of Current Year
While the steel
products went
Joins Blair Staff
of
ures
A
hour. This marks the third consecu¬
tive year steel labor rates have gone up. The base wage now is
$1.68lk an hour. For the last year it had been $1.57.
or
world.
CHICAGO,
Commercial
little
declares.
of world trade.
A
wages,
panies don't want to be closed by a strike. They'll give as long
as
they can pass along the additional costs, this trade journal
forward step in
maintenance
ma¬
choice but to raise
wages. The labor unions keep driving for higher wages and more
benefits for their members. Business is good now, and the com¬
cooperation in proposing the
political risk guar¬
a
Not only will higher
off in early 1954.
and
steel
Ease
pop¬
another round of inflation, says "SteeL" For the last
prices—as registered by the U. S. Bureau of Labor Statistics
index—have been steady at the level to which they declined when
government
as
increase
■
~,
holiday-shortened week ended July 7 from 231 in the preceding
week, according to Dun & Bradstreet, Inc. Despite this dip, fail¬
year,
lations for the exceptional efforts
anty system
have to
and
cars
from 194 in the previous week and were
It spells
of Trade
particularly its Inter¬
Trade Section, deserves
commendation
a
Capacity This Week
auto industries have raised theirs.
more
national
general will
comparable 1954 week 5,680
the
Failures involving liabilities of
and
the auto industry buys will cost more.
by
<,
Like Weeks In 1954 and 1953
low the prewar
a
trucks made*
the previous
year ago.
a
Business Failures
terials prices be passed on but so will higher labor costs. Industry
making specific
sound suggestions to your elected
representative.
you
14,439
2,056 trucks, and for
1,407 trucks.
stocks.
Corp. says the additional cost of steel for
for building
cents, and
Year Ago
a
Canadian output last week was placed at 9,679 cars and 2,135
trucks. In the previous week Dominion plants built 8,331 cars and
a $300 refrigerator,
equiping a six-room house, $19.
Almost all other goods and services will go up, too.
The tire
manufacturer supplying the auto industry will find the cost of
his machinery higher because the steel for making it will cost
more
per pound.
So, the tire maker will pass the higher costs
along to the auto manufacturer.
Meanwhile, other suppliers to
the auto industry will have similar experiences, and everything
90
remove
to
week and
with liabilities above
our
nation's business life is to
to
;
ular-priced automobile will be about $15, for
Your
11%
automotive
report this week from the United States Department
S. Steel
U.
Declined
Last week the agency reported there were 22,910
in the United States. This compared with 26,282 in
Rising costs are in store for the metalworking industry, stem¬
ming from the wage and price increases in the steel industry,
says "Steel," the metalworking weekly, the current week.
tion.
the
V
year,
Commerce
informa¬
Last Week
Output
Preceding Week But Was Almost 65%
week's car output declined below that of the previous
by 18,046 cars, while truck output declined by 3,372 vehicles
during the week. In the corresponding week last year 84,643 cars
and 14,439 trucks were assembled.
r
inventory adjustment shut¬
Steel Production Set at 92.5% of
will be advisable to establish pro¬
to assure that decisions
accurate* and
an
it
cedures
,
Last
following
car
696,734
week
was
new
1955, totaled
industry for the latest week, ended July 8.
1955, according to "Ward's Automotive Reports," assembled an
estimated 140.356 cars, compared with 158,402 (revised) in the
previous week.
The past week's production total of cars and
trucks amounted to 108,266 units, or a decrease of only 11% below
the preceding week's output of 184,684 units.
It was however
65% higher than for the like period a year ago. A total of 99,082
units was reported for the same week a year ago, states "Ward's/1
substan¬
that under
enacted
this
had added to their
...
as
*
,
600,000,000
am
Assuming that a
tially in the form
date
July 2,
,
.
Above
states that retailers increased their sales to $15,in June.
That was $100,000,000 above May, and
$900,000,000 greater than in June, 1954. Going back to May, the
department pointed out that retail inventories had declined less
than seasonally during that month, mainly because auto dealers
Ameri¬
exporters to meet that
petition.
as
Automotive
The
still down for changeover, and Kaiser
output halted, although Jeep and truck manufac¬
car
A further
of
enable
can
S.
From
During June a total of 649,373 cars and 119,739 trucks were
built; respective January-June totals were 4,258,014 and 642,993.
favorable sell¬
ing terms offered by exporters of
and
U.
many factories,
Chrysler Corp. volume on Friday
planned, was limited to three days
.
ended
78,175 cars, or 12.6% above the corresponding
1954 week, and an increase of 26,461 cars, or 3.9% above the cor¬
responding week in 1953.
approximately 4,428,090 cars and 670,987
trucks have been built, or about 1,436,307 more than a year ago.
Car output alone is beyond the 4,337,481 completions for as recent
a
year as 1952, when NPA controls limited car assembly.
Per¬
centagewise, car output is up 43.7% over a year ago, truck erecting
15.7% higher and combined car-truck operations 39.2% stronger.
elsewhere
our
.
Co.
of the previous week.
To
persuaded
more
Willys
down
in
which
foreign buyers
prefer to buy goods made in the
import goods made
assembly,
car
ture resumed last week
have been
are
Dodge
Elsewhere, Lincoln
Na¬
noted
and
/"
year.
t..e past week.
Annual Vacation
revenue
Loadings for the week
meantime, was shooting for 54.7% of the
output against a 49.0% slice during the first six
disturbance hitting
1953.
cars, an increase of
and trucks were pro¬
Motor
in
Association of American Railroads.
work
Motors,
car
latest
the
last.
instances
is
4th
Soaring temperatures forced workers home at
turally, these aids constitute stiff
government-aided competition for
United States exporters competing
against exporters of these nations
in foreign markets.
States, but
5-9
months of the
insurance
or
Practically all these nations also
discussion
cars
July
the like week
Loadings Declined 12.9% In Latest Week Due to
on
General
>
offer guaranties or insurance
1
record
the
over
freight for the week ended July 2,1955,
which was affected by the coal miners' annual vacation decreased
102,738 cars or 12.9% below the preceding week, according to the
tory alterations at Mercury division.
against political risks.
because of the
above
1,663,000,000 kwh.
Coal Miners'
16 of its final assembly plants slated
July 9, including Mercury's St. Louis facility. However,
the company will account for only 26.3% of the past week's car
manufacture, compared to 27.0% during January-June due to fac¬
to work
programs
several nations
.
to
27%
ran
and
Loadings of
The latter producer had
effect
United
operations
Saturday programs at General Motors and Ford
plants are vital factors in the strong pace.
government
Numerous
same
the completion
1954 milestone
■
designed to
exports from the
are
competing with our exporters for
foreign markets.
against
The
was
week
Car
11.
period, of 1950 when a total of 128,056
duced.
■■■V.';.
United States.
in
1954
that last week's production was
expected to top the volume hit in all but three weeks of 1954 as
authorized by the
guaranty bill is intended to sup¬
plement and
not
supplant the
are
Industry
184,684
The statistical agency added
The program
Similar
week's
reached until Oct.
not
was
such contracts.
■
last
of the 5,000,000th car or truck of 1955.
issuing guaranty contracts and
adjusting
claims arising under
mentioned
under
Highlighting the past week's manufacture
companies
for
Federal
11%
preceding week, according to the Edison Electric Institute.
This week's output declined 379,000,000 kwh. below that of the
previous week, when the actual output stood at 10,138,000,000 kwh.
It increased
1,574,000,000 kwh., or 19.2% above the comparable
completions made up of
158,402 cars and 26,282 trucks and almost 65% higher than the
like 1954 week when 84,643 cars and 14,439 trucks were turned out.
of
commercial
guarantor
or
only
37
estimated at 9,759,000,000 kwh., a moderate decline from-that
was
The State of Trade and
corporation
of
5
page
of the
have been exhausted.
Most
(197)
lent;
Prices
the
for soybeans
greatly improved by ample
Trading
corn
belt remained uniformly excel-,
declined.
Prospects for the crop-were
weather.
Board of
on page 38
soil moisture and recent hot
in grain and soybean
futures on the Chicago
Continued
38
The Commercial and Financial
(198)
Continued
from
Continued
37
page
from
Chronicle
bank
12
page
Thursday, July 14, 1955
...
and
reserves
more
reserves
will be needed to foster economic
growth. The Federal Reserve has
The Stale of Tiade and
Trade
last
active
more
was
bushels,
40,500,000
week.
Daily
Indnsiiy Banking in Prosperity
sales totaled
average
previous
the
30,300,000
against
and
week,
50,500,000 bushels in the same week a year ago.
A sizable
volume
developed in family flour bookings during
the week as the result of mill protection against
price advances. Many buyers covered their requirements
the latter part of
moderate
periods ranging up to 120 days. The uptrend in prices for hard
bakery flours made for continued caution on the part of
bakers.
Trading in green coffee was less active with roasters
for
wheat
showing little interest in current offerings in view of prospective
heavy arrivals.
The
trend
lower
in
uncertainty con¬
Coffee Agree¬
reflected
also
prices
cerning Brazil's attitude toward the International
ment.
market
cocoa
somewhat
prices
and
active
fairly
was
steadier, with support based to some extent on larger sales from
Brazil to
United States importers.
Warehouse stocks of cocoa
showed a drop to 235,016 bags, from 241,858 a week previous and
compared with
125,751
hags
Factory and warehouse
year ago.
a
stocks of lard continued to mount and the market remained weak
at
the
around
lowest
Livestock
hogs,
institutions
also
accompanied
featured
were
by
declines in
sharp
further
compared with prices prevailing
continued
by
weakness in
pork
fresh
as
Spot cotton prices were mostly steady during the past week.
market included the announcement
of further foreign authorizations for the purchase of United States
cotton, indications of plantings smaller than expected, and an in-;
crease of
12 points in the mid-June parity price over the May
level. Reported sales in the 14 markets declined moderately to
33,200 bales, from 39,300 bales in the preceding week. Sales of
cotton for export remained small in volume and totaled 61,000
bales, compared with 100,000 the previous week and 92,000 in
Factors tending to support the
the 1954 week.
view
the
of
a
record rate in the
period ended on Wednesday of last week. Mer¬
of the nation generally chalked up larger
sales receipts than in the comparable week a year ago.
The
demand for many seasonal items, which had been lagging, rose as
temperatures climbed.
chants
in
most
Retailers
parts
in
three
strike—Los Angeles,
cities
transit
which
in
workers
were
Little Rock, and Washington—reported
on
lag¬
ging sales volume.
mated by
Dun & Bradstreet, Inc., to be from 2 to 6%
level of
year
esti¬
was
above the
Regional estimates varied from the compar¬
able 1954 levels by the following percentages: New England and
-South +2 to +6; East and Pacific -fTto + 5;-Midwest -}-3 to +7;
a
ago.
weather
Warmer
vacation
and
spending helped to boost the
Post-holiday clearance sales of
sales of apparel in most sections.
Summer clothing were postponed in many
cities. The total amount
spent by apparel shoppers was slightly larger than that of a year
ago.
Sportswear and children's clothing were among the most
poular items.
Despite the loss of
shopping day, food stores sold about
one
as
much as during the prior week.
Canned goods, link meats,
beverages, cold cuts and dairy foods rose in demand while the
call for large roasts weakened.
Most
food
stores
sold
than
more
they
did
a
year
supermarkets reporting the largest advances.
Most
but
some
with
ago,
I
warm
goods yvere in declining demand last week
weather item's. rose more than had been expected.
The buying of room air-conditioners expanded sharply in the East
and left many dealers with scanty stocks.
Many stores in New
York City stayed open on July Fourth to meet the revived interest
in
air-conditioners
and
cooling
devices.
supplies
and outdoor furniture
than at this time last year.
Encouraged
by
the
favorable
retailers maintained the active
The
above
a
dollar
year
volume
of
able.
At
buying
wholesale
of
consumer
buying,
of recent weeks.
pace
trade
remained
the most popular household appliances
interest in washing machines con¬
was
the
ances may
It was predicted in a report released by the
Department last week that sales of household appli¬
reach a new high in the second half of 1955.
Department store sales
Federal
Reserve
on
Board's
a
country-wide basis
index
for
the
week
as
absorb
July
2,
1955, advanced 4% from the like period of last year. In the pre¬
ceding week, June 25, 1955, a rise of 6% was registered from that
2, 1955,
an
1955 to July 2,
Retail
1954, while for the four weeks ended July
increase of 4%
1955,
trade
a
was
gain of 6%
volume
average, was somewhat
in
recorded.
improved
York
City
last
a
week,
1,
on
the
that of the preceding week
2% to 3% better
year ago.
Gradually
the re¬
further growth became
City for the weekly period ended July 2,
on
evident.
Member
increasing
maintain
such
their
the
preceding week, June 25, 1955,
that of the previous week.
an
sponding period of 1954.
rise of 4%
was
In
noted from
For the four weeks ended July 2,
1955,
increase of 1% occurred.
1955, the index recorded
a
a
For the period Jan.
rise
of
1%
from
1, 1955, to July 2,
that
of
the
had
banks
corre¬
at
increase
to
future.
near
of
ance
excesses
decisions
rather
and
than
some
of
close
half
to
Interest
billion
a
have
rates
risen
somewhat
but they are not up to
high levels of 1953. In April
the
this
of
year,
Federal
Reserve
Bank discount rates were raised.
Since these restraints
im¬
were
posed, there has been some evi¬
dence of a slackening in the rate
of
credit and monetary growth.
Banks have continued
trend,
the usual sea¬
have been
to
but
increase
to
they
securities.
The
govern¬
growth
in
demand deposits and currency has
slackened to a seasonally adjusted
on
expansion in 1952-53, Federal Re¬
policy
serve
looked
avoidance of credit
real
cause
downturn
toward
which
excesses
trouble
the
once
a
and
might bring
downturn. This policy sought
on
a
to
even
came
the
out
flow
of
capital
investment by fostering deferment
of
projects until slack de¬
in the economy. During
some
the
period of
ease
from May 1953
well
ers, as
Further
ther
bank
of
the
will
in
the
depend
in
incomes.
on
economy,
fur¬
vupon
personal
con¬
State and local governments. With
expanding incomes and the broad
distribution of income
various
for
goods
the
among
spending units,
demands
consumer
and
services
well increase further and be
may
reflected
in
further
already
living.
high
our
The
additions
to
standard
of
of
rapid
activity
shift from
can
gradual
long-term growth without the de¬
to
recovery
velopment
of
more
ties
the
as
rent situation
larly to
the
in
cur¬
related particu¬
are
were
declines
in
and
substantial
a
in
defense
business
other
These
activi¬
offset
expenditures
inventories.
An¬
important offset was
resumption of growth
early
to
in
spending. In addition to
easier credit, tax reduction in 1954
helped to stimulate both consumer
buying
More
business
and
investment.
recently, resumed economic
demands
and
credit
again
begun to
limits of credit
the
upon
supply.
accelerated
have
Moderate
been exerted to
restraints have
help keep growth
high levels of hous¬
very
At present it
that
is evident from
industrial
in
recovery
United States has been
achieved;
economic
is
more
generally
economic
time
World
growth
is
both
at
but cannot
inevitable.
the
of
couraging
than
War
a
be
and
important
the
and
car
pur¬
been
has
accompanied by
in instalment credit
present
prosperity is that it
larger extent than at
time since before World War
on
a
private
initiative
and
ac¬
tions. The Gross National Product
is
probably close to an annual
of $375 billion or $5 billion
now
rate
more
than
at
the
for other
sources
well
as
ment
to
as
of
expanding wants
avoiS; the
surplus
develop¬
sipplies in par¬
.
i#<
ticular sectors.
previous peak
task requires al¬
operations to adjust
of reserves to ever-
time avoidance of
ease
Exact
undue
or
exces¬
stringency.
projection of the arhount
of additional
reserves that may be
required for stable growth is not
feasible, partly because of flexi¬
bilities in the credit, system. Flex¬
ible
include variations in
aspects
of available funds
use
borrowers,
tions
in
with
can be wide varia¬
velocity of money
There
money.
the
little
by lenders,
holders of
other
and
change in
the volume
outstanding.
Flexibility also derives from the;
willingness or unwillingness of
banks to borrow from the Federal
Reserve
in
obtain
to
order
re¬
not
supplied through open
market operations. While the need
serves
to
borrow
straining
tudes
generally exerts
influence, banker
toward
borrowing
re¬
a
atti¬
sub¬
are
ject to changing incentives: the
vigor of credit demands may af¬
fect their decisions; in 1952 excess
profits taxes and the relationship
between
count
market
rates
borrow;
ing
If
banks
to
credit
tainable
by
to
banks
bounds
the
economic
conform
to
expanding
demands and the
supplied
within
tend
may
restraint in
more
main
dis¬
liquidity of the bank¬
system,
loans.
and
inducements
this year, incentives to
might be less and, with
the reduced
show
rates
were
of
re-r
sus¬
growth
acceptable
and
standards
quality, there should be an ade¬
quate supply of credit available
no
money
Need for
The
The
for any
reason
in
gency
great strin¬
markets.
Caution by Bankers
;
responsibility does not rest
Federal Reserve policy.
on
nature
extended
and
by
quality of credit
banks will have
important bearing
of
nance
an
the mainte¬
on
economic
growth.
policy instruments of credit
The
regu¬
lation available to the Federal ReT
serve
the
largely concerned with
are
quantity of credit.
reasonable to
ability
count
of savings
While it is
on
and
in
adequate
continued
the
avail¬
bank
re¬
amounts
for
moderate
serves
expansion, it
is always necessary to keep in
mind that monetary policies can¬
■
Stock
prices
art'cfc;, stock
market
not alone
assure
the maintenance
activity and credit $re at advanced of stable growth. The decisions of
borrowers and lenders as to how
levels,? althought ipjere may
be
available funds are put to use can
some question as to "whether these
levels
ous
too
are
economy.
and
consumer
high for a prosper¬
Business, financial,
confidence
are
on
Reported
for
plans
increased
plant and equipment expenditures
by business, renewed business bor¬
at banks
to
carry
larger
durables, and continued large de¬
mands
for
public
funds
the
bodies,
on
markets
during
Added
on
coming
these
to
part
'
of
all point to heavy
the credit and capital
demands
months.
demands,
the
they
these
all
will
press
deniands
develop,
against the
hard
supply
of
credit.
Un¬
restrained provision of bank credit
to
supplement the supply of
sav¬
ings could result in monetary ex¬
pansion
at
a
rate
that
might
threaten
stability of prices
sustainability of growth.
Usual
when
seasonal
of
this
substantial
year
the
of
expansion
will
volume
of
credit
require
a
of
heaviest
credit
that
the
in the extension
is
greatest, in order to
avoid consequences of an unstable
nature.
The
.
;
policy decisions
will be difficult, for the balancing
of economic activities will always
necessary
be delicate and pressures to
carry
some of them too far are hard to
resist.
Clearly,
many
of the basic
conditions necessary
of
for a period
level economic perform¬
high
ance
and of
standards
rent
steadily rising living
evident in the
are
economic
will
be
curr
situation, but
cau¬
needed
to
avoid
developments that might jeopard¬
ize the achievement of these goals.
An important task of banking in
prosperity is to share responsi¬
bility for exercising the caution
that
is
nance
essential
of
for
the
mainte¬
prosperity.
With Palmer, Pollacchi
(Special to The Financial Chronicle)
in
additional
pressures
are
for caution
need
and
credit and moneyfJor the remain¬
der
is
tion
year.
If
contribute either to sound growth
or to unsustainable
speculation. It
demands
ebullient side;
the
pos¬
en¬
-
solely
rate"" of
advanced
a
amounts, largely for seasonal rea¬
sons, during the latter half of this
considered
sive
and
Treasury must borrow substantial
Con¬
exces¬
longer-run demands, but at
same
seems to depend to a
disquieting degree upon
easy
mortgage terms offered by
lenders, whose caution is lulled
by lenient government guarantees.
available
aspects of
of
is based to
II.
to the
the
starts
any
at
permit
This
supply
ing
somewhat
to
sustainable
desirable
sible,
One
situation
favorable
expansion
since
pace
II
the
prosperity is here. Also, the
international
any
a
of economic developments
survey
to
as
of
inventories, expanding borrowing
to finance purchased of consumer
Current Outlook
granting.
the
automobile
production.
The exceptional volume of hous¬
rowing
within reasonable bounds.
sup¬
most constant
and
an
consumer
much
so
ing
economy
construction.
to
sive expansion or laxness in credit
ex¬ amounts
unstabilizing
Uncertainties
cesses.
rapid rise
required. extensions and a
lengthening of
The easier credit availability pro¬
loan maturities on new cars. Ex¬
vided support for mortgage lend¬
pansion in exports from last year
ing and for utility and state and has
been
very"" sharp;
further
municipal financing. This lending !
growth
over
the - next
several
in turn facilitated a high volume
months
might
w0 be slower.
of
residential
building, utilities Some
slackening
those areas
installations, public building, and
may
be essential jto release re¬
lending
not
borrow
big question is whether the
chases
of
with taxes
expenditures,
private
investment, and expenditures of
The
volume
a
of
drain
as a
advances
1954, the
large
the
budget
sumption
to facili¬
as
the Fed¬
portion
growth
however,
major contribution
tate
on
others
be sure,
a year^
considerable
until the late months of
was
of
Government
$60 billion
course
during the period of restraint
of
country s resources and provide a
source of income to
many work¬
annual rate of about 4%.
In summary, it may be said that
those
on
avoid¬
dependent
corresponding amount, utilize
a
a
the
and
are
actions
Government. To
to
positions;
recently
have
elements are larger
time in history.
any
Further growth
to
amounts
reserve
borrowings
dollars.
condition
year.
these
of
than
Federal
as
1955, advanced 2% above that of the like period of last
the
bflHon in- the past two years, that
straint
According to the Federal Reserve Board's index, department
store sales in New York
involved
of the slack in credit
some
tinued
over
with trade observers estimating the gain at about
than the like period
Jan.
registered above that of 1954.
was
New
For the period
in
of
eral
that
of the similar period of
expected
any
and
consumption
changing daily, weekly, and other
expenditures has increased by $13 purely seasonal needs, as well as
availability.
taken from
ended
if
needs
seasonal
port moderate credit growth, but
The rate of personal
avail¬
easily
shift
the
first
as
permitting the growth in credit to
expansion
noticeably
unabated.
Commerce
4he
volume
so
less
reserves
press
past week, although
tinued
Sporting goods, picnic
in larger volume
bought
ago.
Cooling equipment
the
were
is
and
ago
little
two years
was
All
roads
household
a
make
veloped
+4 and Southwest +4 to -f-8.
at
modi¬
1954
late
.
Northwest 0 to
is
billion less than it
to
in
could
The total dollar volume of retail trade in the week
however,
component,
rate about $17
Federal Reserve policy was
fied
ment
in retail stores at a near-
money
in
Government
private construction by 457 bil¬
lion, and State and local govern¬
ment expenditures by $5 billion.
reducing their holdings of
Near-Record Rate
Shoppers continued to spend
growth
previous
meet
in the second quarter of 1953. The
Federal
responsibility for seeing that
have adequate reserves to
banks
supply relative to eco¬
nomic activity.
Because of the changed trend,
sonal
Sustained In Latest Week at
con¬
the money
loans, contrary
Trade Volume
a
tinued indefinitely, particularly in
averaged
few weeks ago.
a
at
be
doubtless too fast to
was
borrow
prices since August, 1953.
markets
expanded
high rate. From June 1954 through
January 1955, total monetary
growth, after allowance for sea¬
sonal variations, proceeded at an
annual rate of about 6%, which
bank
The
a
\
BOSTON, Mass.—Daniel J. Daly
has
mer,
become
affiliated
.with
Pal¬
Pollacchi & Co., 84 State St»
•
Number 5446
Volume 182
The Commercial and Financial Chronicle
...
The
Indications of Current
Business Activity
AMERICAN
IRON
Inuicaied
steel
AND
STEEL
operations
week
INSTITUTE:
or
month available.
or
month ended
Previous
Month
Week
Ago
on
Dates shown in first column
that date,
in
or,
Ago
July 17
§2,233,000
*2,073,000
2,316,000
1,534,000
6,610,550
6,636,700
6,591,950
6,441,400
*85.9
96.0
ingots and
AMERICAN
Crude
castings
64.3
AMERICAN
PETROLEUM
oil
and
Steel
(net tons)
IRON
AND
(bbls.
average
of July
output
Kerosene
output
Distillate
Residual
fuel
oil
(bbls.)
output
(bbls.)
Distillate
fuel
7,565,000
;
:
oil
24,973,000
STEEL
2,159,000
fuel
oil
2,277,000
OF
1
July
1
;
_
11,257,000'
11,522,000
11.838,000
7,615,000
7,754,000
7,894,000
AMERICAN
of cars)
'
1
159,611,000
164,471,000
168,985,000
164,546,000
1
29,899,000
29,132,000
26,344,000
27,942,000
i
99,981,000
96,338,000
84,345,000
86,765,000
45,584,000
44,359,000
50,645,000
44,799,000
1
799,472
713,673
637,077
666,237
631,838
crude
Natural
Benzol
oil
gasoline
output
Crude
*10,328,316
7,363,634
7,540,889
7,279,321
5,423,168
tons)—
;_j
INSTITUTE—Month
oil
output
output
imports
$378,851,000
$439,115,000
$378,269,000
$298,511,000
July
200.559,000
277,673,000
193,339,000
178,2j2.000
161,442,000
184,930,000
96,737,000
110,078,000
151,785,000
July
81,555,000
51,364,000
33,145,000
618,559
all
227,236,000
218,302,000
213,454,000
198,440,000
20,571,000
22,309,000
65,000
__
.
20,907,000
____
(barrels)—L_
imports
stock
235,835,000
206,600,000
(barrels).
(barrels)
products
Increase
ENGINEERING
gal¬
(barrels)—
(barrels)
19,828,000
72,000
,
,
34,000
17,229,000
22,989,000
and
17,902,000
10,882,000
274,612,000
234,642,000
15,929,000
domestic
12,787,000
245,001,000
consumption
(barrels) !
552,588
Ju.y
July
—-
of
696,734
cars)__July
July
CONSTRUCTION
<no.
9,735,000
(net
_____
Indicated
July
connections
Ago
produced
June_
products
PETROLEUM
Domestic
RAILROADS:
(number
of
steel
castings
April:
Refined
freight loaded
ENGINEERING
of
8,166,000
July
July
freight received from
of
Year
Month
INSTITUTE:
Total domestic production (barrels of*42
lons
each)—>
ju_'_
10,137,000
,
July
at
Re;eDue
for
tons)—Month
AMERICAN
lines-^
at
(bbls.)
steel
Month of May
23,888,000
1,946,000
July
(bbls.)
of that date:;
Previous
7,005,000
25,850,000
2,026,000
at
Revenue
CIVIL
7,414,000
25,683,000
1
July
output (bbls.)
Kerosene
ASSOCIATION
117,499,000
1
July
Stocks at refineries, bulk terminals, in transit, in pipe
Finished and unfinished gasoline (bbls.) at,
Residual
l
July
(bbls.).
average
(bbls.)
(bbls.)
oil
fuel
1
July
to stills—daily
Gasoline
and
Shipments
output—dally
42 gallons each)
Crude runs
ingots
(net
INSTITUTE:
condensate
are as
Month
§92.5
Equivalent to—
Steel
of quotations,
cases
either for the
are
Latest
July 17
_
production and other figures for th*
cover
Year
Week
(percent of capacity)
following statistical tabulations
latest week
Latest
39
(199)
2,107,000
11,771,000
export
(barrels)
NEWS-RECORD:
Total
U.
S.
Private
Public
construction
construction
_]
construction
State and
municipal
Federal
i
.
COAL OUTPUT
<U.
S.
BUREAU
STORE
SYSTEM—1947-49
AVERAGE
59,177,000
July
2,180,000
♦9,700,000
8,790,000
1,474,000
July
81,000
607,000
412,000
output
FAILURES
(in
smelter
2
103
102
AND
INDUSTRIAL)
—
DUN
9
9,759,000
10,138,000
'
7
204
231
230
8,185,000
OF
Finished
steel
iper
Pig iron
i per
gross
of
PRICES
(E.
of
"
196
lb.)
July
5
4.797c
4.797c
4.797c
4.801c
ton)
July
5
$56.59
$56.59
$56.39
July
5
$37.17
$36.50
$34.00
$26.75
—
M. J.
71,540
.
97,572
201,124
57,231
70,084
33,100
103
107
130
36,540,000
38,840,000
30,690,000
2,020,000
*1,888,000
-
80,244
63,184
2,226,000
,
of period
(tons)
installed
RAILROADS—
(BUREAU
in
June:
OF
service
^
Bituminous
coal
,
MINES)—Month
^
and
lignite
anthracite
(net
tons)™:.
tons)
(net
„
$56.59
&
86,177
99,039
48,612
,
(tons)
AMERICAN
units
COAL OUTPUT
Pennsylvania
Scrap steel (per gross ton)
METAL
of
pounds)
May:
&
IRON AGE COMPOSITE PRICES:
,
COKE
(BUREAU
Production
Oven
QUOTATIONS):
OF
Domestic reiuiery at
July
6
35.700c
35.700c
35.700c
29.700c
Export
July
July
6
35.550c
36.325c
35.825c
(net
6
95.000c
95.000c
91.750c
96.750c
at
July
6
15.000c
15.000c
15.000c
14.000c
July
6
14.800c
14.800c
14.800c
13.800c
Ju.y
6
12.500c
12.500c
12.000c
of
May:
6,425,213
(net
tons)
*6,135,645
4,801,244
6,286,982
—
tons
*6,013,542
4,772,388
138,231
*122,103
28,856
2,346,041
*2,485,179
3,011,996
__
29.675c
at
MINES)—Month
(net tons)
coke
Beehive coke
Electrolytic copper—
11.000c
8traits
Lead
refinery
tin
(New
at_.
York)
(New York)
Lead
(St.
Zinc
Louis)
(East St.
Louis)
at
at
Oven
coke
stock
DEPARTMENT
SERVE
U. S.
DAILY AVERAGES:
Government Bonds
July 12
July 12
corporate:
Aaa
—"
Aa
96.70
100.35
108.70
108.88
110.15
112.19
112.37
Month
110.52
112.19
:•
110.34
112.19
STORE
for
FABRICATED
.
104.14
Contracts
107.44
108.88
Shipments
109.24
109.08
109.42
;/ 109.79
109.97
2.82
2.82
3.24
3.24
3.22
3.16
Gas
conversion
3.05
3.05
3.04
2.89
Gas
operated
3.14
3.14
3.15
U. S.
Government Bonds
corporate
Aaa
Aa
3.23
3.24
3.22
3.18
;
•
A
*
111.25
/-• ,.2.74.,
:
GAS
Industrials
;
,,
Group.
3.52
3.51
3.51
Orders
INDEX
3.32
3.31
of
furnace
199,383
*242,337
253,886
May:
3.22
3.20
3.14
3.18
3.17
406.6
406.3
Cvas
of
Unfilled orders
3.17
boiler
431.5
IN
SPECIALISTS
AND
of
Number
of
July
279,303
280,600
263,148
227,077
96
99
90
ON
Y.
N.
6,500
181,600
163,800
230,400
260,100
881,840
588,611
721,139
753,434
497,062
127,941
127,887
91,226
313
519
323
22,500
SALES
FROM
July
582,243
525,731
621,016
359,824
106.78
106.76
106.76
106.53
S.—=AUTOMOTIVE
MANU¬
May:
vehicles—^;
cars
trucks
motor
.___
84
STOCK
(BUREAU OF
MINES)—
.*___
(barrels)
21,730,000
23,539,000
27,045,000
90
93
$850,366,881
$795,972,328
$762,187,183
634,896,821
602,163,740
614,712,001
74.66
____—
22,409,000
26,486,000
103
75.65
80.65,
$85,412,650
$67,683,972
101,242,550
87,376,958
58,296,623
86,000,000
of
22,604,000
26,039,000
$92,976,244
end
used
24,847,000
24,933,000
.—___,—_
mills (barrels)——,—..—I—
month—barrels
from
(at
Capacity
COMMISSION:
—.——_—.___
of April:
Production
Shipments
Stocks
buses.—
CEMENT
PORTLAND
Month
INDEX—
EXCHANGE
EXCHANGE —SECURITIES
5,900
175,100
(units)
9,300
5,900
(units)
ASSN.—Month of
of
passenger
Number
STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDDEALERS
of
262,900
100
=
63,900
12,400
shipments (units
FACTORY
U.
number
376,979
.
OIL, PAINT AND DRUG REPORTER PRICE
AVERAGE
Total
258,244
July
of period
66,900
'
849,393
shipments
shipments
VEHICLE
PLANTS
3.10
402.3
,
.July
at end
(tons)
(unitsi
*
339,564
.
activity—
(unitst■
burner shipments
heater
waier
MOTOR
Number
(tons)
Percentage
shipments
ga^ range
.July
(tons)—
Production
LOT
*270,226
3.23
3.21
ASSOCIATION:
PAPERBOARD
received
1949
304,498
(AMERI¬
CONSTRUC¬
APPLIANCE MANUFACTURERS ASSOCIA¬
Domestic
3.50
3.31
July 12
Group
COMMODITY
NATIONAL
106
223,184
STEEL
STEEL
(tonnage)—estimated
FACTURERS'
MOODY'S
112
115
May:
'
July 12
Group
Utilities
Public
OF
(tonnage)—estimated
Gas-fired
2.47
July 12
July 12
July 12
Baa
Railroad
117
YIELD DAILY AVERAGES:
BOND
Average
116
109
3.05
109.97
closed
TION—Month
MOODY'S
RE¬
110.52
July 12
_
109.79
103.97
107.27
July 12
__
109.06
103,97
107.44
July 12
Group
Group
Industrials
108.70
103.80
July 12
Utilities
108.88
July 12
Public
(FEDERAL
variations
STRUCTURAL
July 12
July 12
July 12
Group
tons)
adjustment
INSTITUTE
July 12
;
Railroad
(net
1947-4!) Average==l00-
TION)—Month of
July 12
A
Baa
month
SALES
—
seasonal
seasonal
CAN
of
end
of June:
Without
115.24
110.52
108.70
July 12
Average
95.78
95.63
July 12
at
SYSTEM
Adjusted
MOODY'S BOND PRICES
.
2,000
Unfilled orders at end
93
10,041,000
July
(COMMERCIAL
(tons
84,467
Month
97
July
BRADSTREET, INC
1
output all grades
of
(tons
ASSOCIATION
July
kwh.)
000
of
pounds)
Shipments
ELECTRIC INSTITUTE:
Electric
-Month
63,000
RESERVE
100
=
zinc
2,000
112,307,000
Locomotives
RDISON
INC.
June:
Slab
171,434,000
Stocks at end of period
INDEX—FEDERAL
SALES
INSTITUTE
127,027,000
v
OF MINES):
Bituminous coal and lignite (tons)
Pennsylvania anthracite (tons)
DEPARTMENT
AMERICAN ZINC
67,000,000
40,000,000
—_
'
sales by dealers
Number of shares
Odd-lot
y
purchases)—t
851.534
r-
total sales
6,380
7,171
7,062
1,228,618
930,017
790,639
June 18
ACCOUNT
ACCOUNT
of
OF
on
11,172,660
15,385,360
11,340,140
9,074,780
Electrolytic
Common,
Common,
1,824.060
1,661,780
1,370.930
986,670
322,440
271.420
1,165,720
808,450
1,437,140
198,120
refined
Platinum
272,790
23,400
339,320
463,810
256,600
258,640
290,360
282,040
525,405
276,820
tCadmium
(per
73,680
§Cadmium
(per
372,920
511,810
619,195
635,979
June 18
80.730
93.600
65,000
June 18
628.834
866,883
566.019
709,614
960,483
631,019
431.175
2,894.039
2,604,335
June 18
2,151,045
(1947-49
NEW
=
SERIES
U.
—
S.
DEPT.
464.040
370,180
295,200
2.351.584
2,864.393
1,988.339
1,424,585
June is
PRICES,
423,520
June 18
2,775,104
3,328,433
2,358,519
1,719,785
OF
100):
110.0
110.0
July
commodities
110.0
110.0
products
1
foods
—
commodities other than
figure,
flncludes
farm and foods
711,000 barrels
—July
89.8
90.9
90.8
94.8
July
102.7
102.5
103.0
105.3
86.2
87.8
93.7
115.5
114.2
of foreign crude runs,
•
ly 1955; US against Jan. 1, 1954 b'.sis of 124,330.410 cons.
tNumbeb of orders not reported since introduction of Mo nthly
115.7
115.7
July
gBased
on
annual
new
\
investment Plan.
capacity
of
125,828,310 toris
t
.ft
I
i i
■>A
29.603c
15.000c
14.106c
Tt.
1:: i.
ounce)..
pound)
pound)
London
31.970c
28.500c
28.500c
29.000c
29.000c
$78,500
$84,000
10.960c
12.232c
12.000c
£91.398
£89.685
£79.920
£89.955
£88.250
£80.262
$1.70000
$1.70000
$1.70000
$1.70000
$1.70000
$1.71635
$1.70000
$1.70000
$1.73269
$2.60000
i
—
—
$2.60000
$2.60000
(
85.250c
88.928c
89.668c
77.977
$2.81824
91.380c
94.192c
93.192c
90.380c
92.625c
$35,000
$35,000
$35,000
$283,269
$302,920
$275,000
23.200c
23.200c
28.500c'
64.500c
,-v
—-j
72.940
$2.79588
93.625c
(Check)
Straits
—
§§New
min
Gold (per ounce, U. S. pricei
Quicksilver (per flask of 76 pounds)__
Aluminium, 99plus ingot (per pound)__
Magnesium ingot (per pound)
77.214
$2.78977
York
York, 99%
(per
31.970c
$79,077
New
Bismuth
; £95.097
31.970c
(per
**Nickel
£97.455'
.
28.500c
Sterling Exchange
Tin,
£103.000
29.000c
u
—
Silver,
13.906c
14.800c
£103.173
£102.702
—
Exchange—
ounce)
(pence per ounce)
York
14.800c
£102.815
ton)____
Sterling
and
New
'
21.500c
28.500c
27,000c
64.500c
60.000c
$2.25
$2.25
$2.25 "
pound)
quotation. tBased on the average of the
oroducers' and platers' quotations.
§Average of quotation on special shares to plater.
rDomestfc five tSns of more but less than carload lot. boxed §§ Price for tin contained.
"F.o.b.i Port Colbourne, U. S. duty included.
ttAverage of daily mean of bid, and asi
quotation at morning session of London Metal Exchange.
ttDelivered where freight
'Revised
from
?
(per
Cobalt, 97%
Silver
1,536,280
June 18
*
:_
1
ttZinc, London, three months (per long ton)
tCadmium, refined .(per pound)
—-
Silver,
members—
sales
29.700c
36.187C
15.000c
._—
Zinc (per pound)—East St. Louis__
ttZinc, London/prompt (per long ton)—____
357.495
June 18
.
(per
New
33,760
.
35.700c
36.333 c
(per
254,710
purchases
'Revised
i
Antimony
48,000
floor—
—
15,952
35.700c
—
York Boxed
pound) bulk, Laredo
(per
pound)
Laredo—^
((Antimony,
384.000
June 18
of J-*«•'
as
ttThree
33,600
86.7
(
Louis
323,360
Commodity Group-
All
St.
June 18
—
—;
London (per long ton)
months, London (per long
Antimony
June 18
sales
11,339
-
UPrompt,
1,006,570
——
June:
pound)
(per pound)—
York
New
..June 18
—
of
10,182
14,823
QUOTATIONS)—
refinery—_________—_
export
June 18
sales
Processed
months
J.
14,303
15,440
15,748
tons)—__—.
Lead—•
the floor—
off the
M.
&
(short
pound)—
domestic refinery
Eletrolytic
1,856,140
;
14,810
13,885
—_______
month
(E.
for
iper
396.060
8,678,720
1,533,700
Total sales
Farm
Copper
481,520
309.140
purchases
—
of
PRICES
10,858,620
1,692,570
sales
MINES)—Month
(short tons)————._.—_
end
at
598,300
1,383.430
!
(estimated)
OF
May:
14,787,060
June 18
sales
LABOR
of
charges
Shipments (short tons)
520.630
—June 18
______
;
income before charges
(BUREAU
13,652,030
—June 38
Short sales
All
after
OXIDE
Stocks
._——_____——June 18
——
—
purchases
WHOLESALE
320,240
operating
income
ZINC
SPECIALISTS:
—_____.
_______
—
sales
Other
235~820
specialists in stocks in which registered—
round-lot transactions for account of
Total
233,010
406,470
MEM¬
sales
Other
railway
June 18
Short sales
Total
324,160
497,270
(SHARES):
FOR
____
——
—
Average
transactions initiated
Total
Net
METAL
Short sales
Total
Taxes
June 18
TRANSACTIONS
RRs.)—Month
exepenses—
ratio
June 18
purchases
Other
operating
Operating
sales—
transactions initiated
Total
322,610
441,430
ON THE N. Y. STOCK
STOCK TRANSACTIONS
MEMBERS
OF
revenues
235,820
STOCK SALES
ROUND-LOT
operating
Production
sales
Other
233.010
June 18
sales
Short sales
Total
324,160
dealers—
BERS, EXCEPT ODD-LOT DEALERS AND
Total
322,610
June 18
.>
by
—
AND
xound-lot
Transactions
$33,963,305
Total
Net
sales
Short sales
ROUND-LOT
$45,306,462
June 18
ROUND-LOT
Total
$61,712,211
by dealers—
sales
Other
$59,838,044
June 18
—
Number of shares
EXCHANGE
797,701
937,188
1,234,998
4,257
1,207,849
Short sales
Other
1,212,106
(AS¬
ROADS
May:
Total
June 18
Round-lot purchases
of
I
OF AMERICAN
SOCIATION
$38,764,551
June 18
Number of shares—Total
Total
$53,075,203
other sales
Round-lot sales
Other
1.054.685
$70,676,763
June 18
Dollar value
Other
1,374,389
$67,099,157
CLASS
EARNINGS
RAILROAD
short sales
Customers'
FOR
1,313,207
June 18
Customers'
Total
"
i
purchases by dealers (customers' sales)—
Number of orders—Customers'
TOTAL
:
June 18
_
value
Dollar
Odd-lot
(customers'
East St.
figure.
tBased on the producers'
Louis exceeds 0.5c.
.
.
<
r,
>
i:
'■
•
.
-ft
«
40
The Commercial and Financial Chronicle...
(200)
o
Thursday, July 14, 1955
..
★ INDICATES
Securities Now in
•
All
State
Utah
April 19 (letter of notification) 1,000,000 shares of com¬
mon
stock (par one cent). Price—30 cents per share.
Proceeds—For mining operations.
Underwriter—Gen¬
20
June
A common
and gas
Beehive Uranium Corp., Salt Lake
Office—1508 Capitol Ave., Houston,
operations.
Ulster St., Denver, Colo. Underwriters—
Securities Corp. and Carroll, Kirchner
40th Ave.
and
Mountain
States
& Jaquith, Inc.,
•
both of Denver, Colo.
,
Colohoma
Uranium, Inc., Montrose, Colo. (8/2);
April 21 filed 2,960,000 shafres of common stock (par one
cent), of which 2,500,000 shares are to be offered pub¬
licly. Price—50 cents per share. Proceeds—For explora¬
tion and development expenses and for general corpor¬
City, Utah
May 26 (letter of notification) 20,000,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For mining expenses. Office — 156 East Third
of notification) 300,000 shares of class
stock. Price—$1 per share. Proceeds—For oil
(letter
Underwriter—Bar¬
Co., Inc., New York.
Price-^-At par
stock.
12, N. Y. Underwriter—None.
Development Corp.
Industrial
Allied
Filing to be amended.
Corp., New York.
eral Investing
&
(letter of notification) 300,000 shares of common
($1 per share). Proceeds—To re¬
tire outstanding debts and for working capital. Office—
Underwriter—None.
filed
7
equipment and working capital.
ISSUE
Clad-Rex Steel Co., Denver, Colo.
Corp., New York
$1,000,000 of five-year 8% subordinated
debentures due July 1, 1960.
Price—100% of principal
amount. Proceeds—For working capital and expansion
of loan business. Office—325 Lafayette Street, New York
June
(7/20)
REVISED
June 6
Beaumont Factors
;
Moab,
rett Herrick
St., Little Neck, N. Y.
Underwriter—Western States
Corp.,
Uranium
For
July 1 (letter of notification) 800 shares of capital stock.
Price—At par ($50 per share).
Proceeds—For working
capital.
Office—c/o Robert T. Groh, 47-44 Glenwood
PREVIOUS
ITEMS
•
it Bangtail Preferred, Inc.
Uranium & Oil Corp.
of notification) 15,000,000 shares of com¬
mon stock. Price—At par (one cent per share). Proceeds
—For mining operations.
Office—65 East .Fourth South
Academy
June 10 (letter
St., Salt Lake City, Utah.
Investment Co., same city.
Registration
ADDITIONS
SINCE
ate
purposes.
Paul C. Ferguson & Co., same ad¬
South St., Salt Lake City, Utah. Underwriter—Columbia
Securities Co., Denver, Colo., and Salt Lake City, Utah.
New York; and
*Allstates Credit Corp., Reno, Nev.
June 27 (letter of notification 27,000 shares of 7% cumu¬
lative preferred stock (par $10) and 27,000 shares of
common stock
(par $1) to be offered in units of one
share of each class of stock.
Price—$11 per unit. Pro¬
it Black Panther Uranium Co., Oklahoma City, Okla.
July 12 filed 500,000 shares of common stock (par 10
cents).
Price—$1 per share. Proceeds—To explore and
Underwriters—General Investing
Shaiman & Co., Denver, Colo.
Corp*
June 7
Underwriter
Tex.
—
dress.
ceeds—For
ginia
St.,
working
drill leases and claims in
Porter,
basis."
Office—206 No. Vir¬
Underwriter—Senderman & Co.,
capital, etc.
Reno, Nev.
May 19 filed 163,898 shares of common stock (par $1)
offered for subscription by stockholders of rec¬
May 17, 1955, on basis of one new share for each
share held. Price—To be supplied by amendment. Pro¬
ord
Underwriter—None.
Co., Ltd.
Ffeb. 17 (Regulation "D") 600,000 shares of common stock
American
costs
American Natural
to
on
Gas Co.
new
(7/18)
of
share for each five shares held
—
For
—
At
new
par
plant.
($1
per
Office—
working capital. Underwriter—J. J. Riordan & Co., Inc^
42 Broadway, New York City.
Conjecture Mines, Inc., Coeur d'Alene, Idaho
May 5 (letter of notification) 200,000 shares of common
stock (par 10 cents).
Price—25 cents per share. Pro¬
ceeds—For mining expenses. Office—326 Wiggett Bldg.,.
terminate
St., Chanute, Kan.
Coeur
d'Alene, Idaho.
kane, Wash.
&
Hecla,
Inc.
on
Sept.
15, 1955
date
of
Sudbury Basin Mines, Ltd.,
^
Toronto, Canada
Jan. 31 filed 3,000,000 shares of common stock (no par).
Price—To be supplied by amendment.
Proceeds—For
exploration and development of properties. Underwrite*
—Stock
Consolidated
June
($10
cent).
one
Price—15 cents
expenses.
April 27
Systems, Inc.
mon
mon
(par 50
Price—$3.75 per share. Proceeds—For manufac¬
Sending and Receiving Units, working
capital and general corporate purposes. Office—Balti¬
more, Md. Underwriter—Mitchell Securities, Inc., same
<lty.
of Teleac
•
to
on
•
Chance
/
29
(A.
filed
B.)
Co., Centralia, Mo.
50,000 shares of
common
Boston
Philadelphia
Pittsburgh
San Francisco
Private JVires
to
all
offices
Chicago
Cleveland
'•
(par
1
Underwriter—Bay Securities
the
for
(7/20)
basis of
subscription by
one
new
stock
common
share for each
(no par)
stockholders
20
shares held
of July
to
be
construction
program.
(jointly);
Morgan
Stanley
Ladenburg, Thalmann & Co.
Underwriter—To be
a.m.
(EDT)
on
& Co.; Lehman Brothers;
Bids—To be received up to
July 20 at office of Commonwealth
Service, Inc., 20 Pine St., New York 5, N. Y.
(par $5).
Consumers Power Co.
(7/21)
100,000 shares of cumulative preferred
Price—To be supplied by amendment.
Proceeds—For additions and improvements. Underwriter
—Morgan Stanley & Co., New York.
re¬
filed
June
24
stock
(no par).
Copper Blossom Uranium & Mining Co.
(letter of notification) 5,000,000 shares of capi¬
tal stock (par one cent).
Price—Five cents per share.
June 24
Proceeds—For
South,
Salt
Securities
'
Pa.
June 17 (letter of notification) 120,000 shares of common
stock (par 25 cents).
Price—$2 per share. Proceeds—
Colo.
by competitive bidding. Probable bidders:
Harriman Ripley & Co. Inc. and The First Boston Corp.
curities Corp., same city.
Co., Philadelphia,
one cent).
Price —10 cents per share.
mining expenses.
Office—206 Mercan¬
filed 373,689 shares of common
offered
ceeds—For
acquisition
Manufacturing Co., Pitts¬
Underwriter—Stifel, Nicolaus & Co., Inc., St.
(Victor V.)
Colo.
determined
Chieftain Uranium Mines, Inc.
April 22 (letter of notification) 4,000,000 shares of capi¬
tal stock. Price—At par (five cents per
share). Proceeds
—For mining operations. Office—223
Phillips Petroleum
Bldg., Salt Lake City, Utah. Underwriter—Empire Se¬
Clad
Denver,
subsidiary.
duce bank loans incurred in connection with
of common stock of Seyler
New York
par
21; rights to expire on Aug. 5. Unsubscribed
offered to employees of company and its
Price—To be not less favorable to the com¬
pany than $4 per share below the then current market
price at the time the offering price is determined. Pro¬
as
(7/19)
Price—To be supplied by amendment. Proceeds—To
burgh, Pa.
Louis, Mo.
be
10:30
stock
Price—At
accounts payable,
and working capital.
Co., Cincinnati, O.
Corp.,
Consumers Power Co.
shares
(N. Y.)
general corporate purposes. Office—130 West 42nd
Street, New York, N. Y. Underwriter—United Equities
Co., 136 Liberty Street, New York, N. Y.
June
stock
June 24
May 31 (letter of notification) 300,000 shares of common
stock (par one cent).
Price—$1 per share. Proceeds—
For
&
Uranium
Bldg., Denver,
Corp., New York.
Springs Uranium Co., Moab, Utah
June 8 (letter of
notification) 300,000 shares of common
stock (par five cents).
Price—$1 per share. Proceeds—
For mining expenses.
Underwriter—Universal Invest¬
ment Corp., Washington, D. C.
Central Reserve Oil Co.
stock.
repay
improvements
tile
com¬
stock
Cedar
Badger Uranium Corp., Las Vegas, Nev.
«Juiy 1 (letter of notification) 6,500,000 shares of com¬
mon
stock.
Price—At par (one cent per share).
Pro¬
ceeds—For mining operations. Office—401 Fremont St.,
Las Vegas, Nev.
Underwriter—Weber Investment Co.,
.same city.
and
Proceeds—For
(par one cent). Price — 25 cents per share.
Proceeds—For mining costs. Underwriter—J. E. Call &
Co., Salt Lake City, Utah.
cents).
preferred
share). Proceeds—To
per
Constellation
Carbon Uranium Co.
(Utah)
(letter of notification) 746,280 shares of
or
March 22 (letter of notification) 2,855,000 shares of com¬
Un¬
City, N. J.
Bldg., Oklahoma City 2, Okla.
Co., Jersey City, N. J.
Exchange
Telephone Co., Florence, Ky.
notification) 10,000 shares of 5Y2%
convertible
Underwriter—Westheimer
share. Pro¬
per
Stock
(letter of
additions
for
Canadian Uranium Mines, Ltd.,
Montreal, Canada
3
(regulation "D") 2,000,000 shares of common
(par
21
cumulative
June
stock
Toronto
on
States.
the
ceeds—For exploration and development
derwriter—Tellier & Co., Jersey
sold
be
to
through underwriters or selected dealers in United
stock; offer to
(subject to withdrawal by
mailing of the prospectus to the Goodman
stockholders). Underwriter—None.
Inc.
Underwriter—M. A. Cleek, Spo¬
Consolidated
Calumet if the required number of Goodman shares have
not been deposited and
accepted within 30 days from the
March 3 filed 540,000 shares of common stock
ture
Price
share of Goodman common
stock; seven shares for each
share of Goodman 2nd preferred
stock; and eight shares
for each share of Goodman 1st
preferred
Office—615 Liberty Bank
Automatic Remote
stock.
standing capital stock of Goodman Lumber Co., Good¬
man, Wis., on the following basis: 18 shares for each
notification) 500,000 shares of common
cent). Price—Two cents per share. Prodrilling equipment and working capital.
Underwriter—Tellier &
common
Omaha, Neb
Undervviter—None.
Calumet
June 16 (letter of
-ceeds
of
Proceeds—For building of
Finance Corp.,
11
(letter of notification) 150,000 shares of 7%,
cumulative preferred stock (par 95 cents) and 15,000
shares of common stock (par one cent) to bq offered to
units of 10 shares of preferred stock and one share ot
common stock.
Price — $10 per unit. Proceeds — For
June 9 filed 113,592 shares of common stock
(par $5) to
be offered in exchange for all of the issued and out¬
N. Y.
Phoenix, Ariz. Underwriter—First National Life
Insurance Co. of Phoenix, same address.
one
Confidential
March
Underwriter—None.
Las Vegas, Nev.
ton St.,
(par
Corp., same city.
Cal-U-Mines, Inc., Reno, Nev.
May 2 (letter of notification) 2,250,000 shares of com¬
stock. Price—At par (10 cents per share). Proceeds
—For mining expenses.
Office—139 Virginia St., Reno,
Nev.
Underwriter—Coombs & Co. of Las Vegas, Inc.,
Arizona Amortibanc, Phoenix, Ariz.
April 4 (letter of notification) 300,000 shares of com¬
mon stock, class A.
Price—At par ($1 per share). Pro¬
ceeds—For working capital. Office—807 West Washing¬
.stock
cumulative
mon
300,000 shares of com¬
cent). Price—$1 per share. Proceeds
—To repay debt and for general corporate purposes.
Underwriter—Equity Securities Co., 11 Broadway, New
York, N. Y.
'
Ventures,
N. Y.
402 N. Plummer
(letter of notification)
Oil
Community Credit Co., Omaha, Neb.
6
(letter of notification) 1,000 shares of 5Vz%
preferred stock.
Price—At par ($100 per
share).
Proceeds—For working capital.
Office—3023:
Farnam St., Omaha, Neb. Underwriter—Wachob-Bender
June
Office—c/o Lazar Emanuel, 515 Madison Ave.,
shares
share).
stock (par one
Arkansas
Proceeds—For development
purposes.
Underwriter—
corporate
,
deter¬
Blyth
& Co., Inc.; The First Boston Corp.; Lehman Brothers;
Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Bids—Expected to be received up to 11 a.m. (EDT) on
«er about July 18, at 165 Broadway, New York 6, N. Y.
mon
St., Denver, Colo. Underwriter—Peters, Writer & Christensen, Inc., Denver, Colo.
stock¬
it Byers Portobase, Inc., Chanute, Kan.
(letter of notification) an undetermined number
funds used for that purpose. Underwriter—To be
mined by competitive biding.
Probable bidders:
May 11
Colzona Oil & Uranium Corp., Denver, Colo.
April 29 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—1300 Larimer
June 23
July 18 (with an oversubscription privilege); rights to
expire Aug. 2. Price — To be supplied by amendment.
Proceeds—To be applied to the purchase of equity se¬
curities of subsidiaries or to replace other corporate
Rare Metals Corp.,
amount to
(7/20)
vesting Corp., New York.
Statement effective June 21.
thereof.
on
American
general
New York 22,
736,856 shares of common stock (par $25)
be offered for subscription by common stockholders
one
of principal
Colorado Sports Racing Association
—
15 filed
the basis of
(10
^ Brownstone Properties, Inc.
June 30 (letter of notification) 90 shares of 10% cumu¬
lative preferred stock.
Price—At par ($500 per share).
Proceeds
For purchase of building and alteration
210,600 shares of common stock
Underwriter—None.
June
Price—95%
and
None.
covered by
are
par
holders and 100% to public.
(par $1),
option warrants held by key offi¬
cers and employees.
Price—$16.63 per share. Proceeds—
For general corporate purposes. Office—New York, N. Y.
which
Price—At
held.
Broadcasting-Paramount Theatres, Inc.
filed
•
Underwriter—Birkenmayer & Co.*
April 29 filed 600,000 shares of common stock (par five
cents). Price—$1 per share. Proceeds—For purchase of
land and other facilities and for working capital.
Of¬
fice—Grand Junction, Colo.
Underwriter—General In¬
Mining, Inc.
(letter of notification)
stock.
stock
{par $1). Price — 50 cents per share. Proceeds—For
general corporate purposes. Underwriter—Maine Invest¬
ment Co., Ltd.
June 30
Bldg., Denver, Colo.
same city.
efforts
Bonnyville Oil & Refining Corp., Montreal, Can.
April 29 filed $2,000,000 5% convertible notes due July
1, 1975 to be offered for subscription by common stock¬
holders at rate of $100 of notes for each 100 shares of
American Asbestos
•
"best
1,950,000 shares of com¬
cents per share). Pro¬
ceeds—For mining expenses. Offices—Boulder, Garfield
County, Utah, and Box 1055, Farmington, N. M. Under¬
writer—Birkenmayer & Co., Denver, Colo.
mon
York, Inc.
to he
ceeds—To repay bank loans.
Tex., on
•
June 7
Ambassador Hotel of New
Underwriter—
State of Utah.
Houston,
Corp.
(letter of notification) 300,000 shares of common
(par 20 cents). Price—$1 per share. Proceeds—
For oil and mining activities.
Office — 350 Equitable
stock
Blue Goose
address.
same
Co.,
&
Stacy
Colorado Oil & Uranuim
t
mining operations^ Office—65 East 4th
City, Utah. Underwriter — Empire
Lake
Corp.,
same
city.
.
Copper Blossom Uranium & Mining Co.
June 24 (letter of notification) 5,000,000 shares of
capital
stock (par one cent). Price—Five cents per share. Pro-
.Volume 182
Number 5446
The Commercial and Financial Chronicle
...
ceeds—For mining expenses. Office—65 East 4th
South,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp.,
Crown Uranium Co., Casper, Wyo.
May 6 (letter of notification) 225,435 shares of common
stock (par five cents). Price—At market (estimated at
city.
same
Cordillera Mining Co.,
(201)
about
Denver, Colo.
15
Proceeds—For mining operations. Office — 343 South
St., Salt Lake City, Utah. Underwriter — J. W.
Hicks & Co., Inc.,
Denver, Colo.
State
,
cents
share).
per
Proceeds—To selling stock¬
June 8 (letter of notification) 2,995,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
For
Bldg., Casper, Wyo.
★ Digit-O-Meter Co., Denver, Colo.
June 27 (letter of notification)
50,000 shares of
holder who received these shares in exchange for shares
of Kontika Lead & Zinc Mines, Ltd.
Office—205 Star
mining
operations.
Offices
738
Majestic
Bldg.,
Denver, Colo., and 317 Main St., Grand Junction, Colo.
Underwriter—Lasseter & Co., Denver, Colo.
—
•
stock
mon
(par
com¬
of
one
!
•
★ Cowles Chemical Co., Cleveland, Ohio
30 (letter of notification)
$295,000 of 4V2% sub¬
ordinated
sinking fund debentures due July 1, 1965.
June
Price—101% and accrued interest.
Proceeds—To finance
Carey, Inc., same city.
Inc.
common
&
Co.)
Weld
etc. Offices—
Underwriter—
York.
ISSUE
Natural
(Bids
a.m.
(Allen
148,000
R.
Common
and Rauscher,
Ellis
&
Foremost
(Allen
and
Co.
First California
&
Co.)
61,302
Co.;
Corp.)
and
Pacific Far East
$1,250,000
Pacific Far East
Corp. and Gearhart & Otis,
G.
(A.
(Stifel,
(Tuesday)
Nicolaus
Common
&
Co.,
Inc.)
(Bids
-
General
Wnbber,
Jackson
Krauss
Corp.)
and
by
Stone
(Bids
Webster
&
$1,000,000
Preferred
All
State
Uranium
(Wednesday)
Corp
(General
(Offering
Investing Corp.)
Power
Kroehler
Mfg.
$600,000
a.m.
EDT)
August 30
Co..
(White,
$19,500,000
(Bids
to
&
Co.)
216,828
Pacific Finance Corp.....
of
Bonds
Co
^.(Blyth & Co., Inc. and Hornblower & Weeks)
West Coast Telephone Co.__—
(Blyth & Co., Inc.)
$20,000,000
Common
(Thursday)
Preferred
-
which
343,025 shares
are
to be
offered in exchange
(par 25 cents) of Phil¬
shares for each Philadelphia Dairy common,
share; and 152,499 shares are to be reserved for issuance
under Employees' Restricted Stock
Option Plan for Fore¬
most officers and key employees.
$325,974
Fort
Packaging International, Inc.
300,000 shares of common stock (par 10£)*
of which 250,000 shares of for account of company and
50,000 shares of five selling stockholders. Price—$3 per
$15,000,000
Utah Power & Light Co
Pitt
June 30 filed
Bonds
(Bids to be invited)
Co
stock
common
Common
Utah Power & Light Co
July 21
held.
adelphia Dairy Products Co. at the rate of five Foremost:
(Tuesday)
September 13
150,000 shares
shares
slare..
for 68,605 shares of common stock
$6,000,000
Housatonic Public Service Corp
(Offering to stockholders—no underwriting)
Debentures
common
stockholders pa
five
Inc., Jacksonville, Fla.
April 21 filed 495,524 shares of common stock (par $2),
(Monday)
Sept. 5
shares
to
each
Foremost Dairies,
230,000 shares
invited)
be
first
for
Ogden, Inc., Odgen, Utah; and Shelton Sanders Invest¬
(Tuesday)
Electric Power
per
ments, Albuquerque, N. M.
Common
Co
Common
Weld
Consumers Power
California
373,689 shares
share
★ Five States Uranium Corp.
June 30 (letter of notification) 3,000,000 shares of com¬
mon
stock.
Price—At par (10 cents per share).
Pro¬
ceeds—For mining expenses. Office—1019 Simms
Bldg.,
Albuquerque, N. M. Underwriters — Coombs & Co. of
(Tuesday)
Power
to be offered
one.mew
Spartanburg, S. C.
Debentures
Bonds
(Bids to be invited)
Common
10:30
Electric
$10)
of
(letter of notification) 86,666 shares of com¬
(par $1). Price—$1.871/2 per share. Proceed*
increase capital and surplus.
Underwriters—AIcDaniel Lewis & Co., Greensboro, N. C.; Dietenhofer &
Heartfeld, Southern Pines, N. C.; and Calhoun & Co.*
$67,000,000
invited)
be
Underwriter—None.
March 25
mon
Common
Co
stockholders—bids
to
Califorftia
\
Colorado Sports Racing Association
to
and
of principal amount
—To
(Monday)
August 23
Common
(General Investing Corp.) $300,000
Consumers
VV.
St. Louis-San Francisco Ry
$100,000
(Bids
July 20
invited)
be
to
Bureau
Fidelity Insurance Co., Mullins, S. C.
(Tuesday)
August 22
underwriting)
company—no
/
(Monday)
16
Aug.
Price—At 100%
Farm
Federations
,
shares
Pacific Telephone & Telegraph Co
Preferred
(John), Inc
(Offered
160,000
Bureau
Proceeds—For general corporate
purposes. Office—Nfewhouse Bldg., Salt Lake City, Utah.
Underwriter—Allied Underwriters Co., same address.
Common
Line, Inc
Becker & Co. Inc.)
(par
basis
Price—$40
V
Co.; J. H. Lederer Co.; and McGrath Securities
Corp.) $600,000
$3,600,000
Curtis
&
Securities
&
shares
50,000
Telephone Co. of Wisconsin.
(Paine,
Shaiman
Equip. Trust Ctfs.
EDT)
noon
$2,000,000
Pictograph Mining & Uranium Co., Inc...Common
Co._
Chesapeake & Ohio Ry
the
Inc.) $750,000
August 8
(A. B.)
stock
Preferred
Inc.)
Co.
&
American
the
Farm
April 21 (letter of notification) 6,000 shares of
Common
$1,250,000
Line, Inc
Becker
G.
(A.
of
State
Federal Security Insurance Co.
Uranium, Inc.
Common
to
other state laws.
$20,000,000
Investing Corp. and Shaiman & Co.)
(General
shares
1
Investing
Colohoma
Common
Corp
July 19
""Chance
Hutzler)
(Tuesday)
August 2
$1,298,500
Taylor*
(in denominations of $250 each). Proceeds—To provide
with necessary funds to comply with require¬
ments of surplus to policyholders under New York and
Debentures
&
Bros.
Eliason,
company
(Monday)
Salomon
members
and
local organization.
shares
Dairies, Inc
&
to
Federation
Common
75,000
Simmons)
—
Family Mutual Insurance Co., Albany, N. Y.
directly
200,000 shares
Pierce & Co.)
August 1
Racing Association, Inc.__Common
Securities
Co.
(Blunt
Common
Noel & Co.)
Staats
(General
Park
&
City, Utah. Underwriter
Co., Las Vegas, Nev.
June 28 filed $1,500,000 of 5% debentures to be offered
Common
Southland Racing
(Hunter
(Thursday)
Western Tool & Stamping Co
units
Co
Eichler & Co.;
Lake
Cafarelli
Kirby Oil & Gas Co
EpT) 736,856 shares
(Van Alstyne,
Sunshine
Fairway Uranium Corp., Salt Lake City, Utah
May 23 (letter of notification) 275,000 shares of capital
stock (par 50 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—2320 South Main Street*
Farm
Petrolane Gas Service, Inc
William
6 filed 300,000 shares of capital stock.
Price—At
($1 per share). Proceeds—For machinery and build¬
ing and working capital. Office — 407 Liberty Trust
Bldg., Philadelphia, Pa. Underwriter—None.
par
Salt
July 28
Livingston Oil Co
(Bateman,
Electronics Co. of Ireland
Jan.
CALENDAR
(Monday)
Gas
11
Building, Moab, Utah.
basis."
Desert Sun Uranium Co., Inc.
April 18 (letter of notification) 3,000,000 shares of com¬
mon stock
(par one cent). Price—10 cents per share.
$2,500,000
Co.)
Corp., Salt Lake City, Utah
mining expenses. Office—527 Atlas Bldg., Salt Lake
City, Utah. Underwriters—Western Securities Corp. and
Potter Investment Co., both of Salt Lake City, Utah.
Preferred & Common
&
share.
(letter of notification) 2,000,000 shares of capital
Price—At par (15 cents per share). * Proceeds—
(Friday)
July 18
American
Deseret Uranium
June 9
Bonds
(Allen
(White,
stock
Proceeds—For
(Republic of)
McLean Securities Corp
cents per
For
Uranium & Development Co.,
NEW
Price—10
cent).
one
Corp., Seattle, Wash.
Dyno Mines, Ltd., Toronto, Canada.
March 25 filed 1,100,000 shares of common stock (pat
$1). Price—To be related to the current market price
on the Toronto Stock
Exchange. Proceeds—To American
Trading Co. Ltd., the selling stockholder. Underwriter*—
R. W. Brown Ltd., Toronto,
Canada, on a "best-effort*
oil and gas operations.
Office—Denver
Club Bldg., Denver, Colo. Underwriter—Carroll, Kirchner &
Jaquith, Inc., Denver, Colo.
stock.
May 25 (regulation "D") 300,000 shares of
(par five cents). Price—$1 per share.
exploration and development expenses,
Toronto, Canada, and New York, N. Y.
James Anthony Securities Corp., New
Arches
Proceeds—For
for
working capital.
Office — 7016
Ave., Cleveland, O. Underwriter—Cunningham,
(par
Uranium
(letter of notification)
Durango Kid Uranium Corp., Moab, Utah
April 1 (letter of notification) 30,000,000 shares of capi¬
tal stock. Price—At par (one cent per
share). Proceeds
—For mining expenses. Underwriter—Guss &
Mednick,,
Office—726 Paulsen Bldg.,
(letter of notification) 2,999,000 shares of com¬
stock
mon
pay
Bldg., Seattle, Wash.
Denver-Golden Oil & Uranium Co.
June 23
common
Proceeds—To
share).
1,750,000 shares of com¬
stock. Price—At par (10 cents per
share). Proceeds
—For mining expenses. Office—1226-1411 Fourth Ave.
—
*
per
mon
Spokane 1, Wash. Underwriter—Percy Dale Lanphere,
Empire State Bldg., same city.
Price—At par (10 cents per share). Proceeds
mining expanses. Office—2485—American Ave.,
Long Beach 6, Calif. Underwriter—Coombs & Co., of
Los Angeles, Inc., San Francisco and Los
Angeles, Calif.
July 15
Dinosaur
June 20
Underwriter—Allen & Co., New York.
uranium and oil exploration.
tal stock.
Cuba
and
99%
as
Proceeds—To Romenpower Electra
Co., Spokane, Wash.
(letter of notification) 1,500,000 shares of com¬
stock.
Price
10 cents per share.
Proceeds—For
mon
—For
Cromwell
Courts
Veterans,
Price—Expected
($1
components, engineering services, research, and re¬
lated expenses.
Office—1249 Bannock St., Denver 4,
Colo. Underwriter—None.
Dawn Uranium & Oil
Uranium, Inc., Long Beach, Calif.
May 31 (letter of notification) 3,000,000 shares of capi¬
Gunn &
principal amount.
Price—At par
for
June 16
Coso
and
(Republic of) (7/15)
filed $2,500,000 of 4%
Construction Co.
Christensen, Inc., Denver, Colo.
Euclid
29
Public Works bonds due 1983.
cent). Price—10 cents per share.
Proceeds—For mining expenses. Office—404 University
Building, Denver, Colo. Underwriter—Peters, Writer &
construction
Cuba
April
Mining Co., Denver, Colo.
May 27 (letter of notification) 3,000,000 shares of
stock.
Underwriter—Justin Steppler, Inc.,
New York.
Cortez Uranium &
41
Common
-
(Morgan
Staniey
Co.)
&
100,000
shares
(Bids
to be Invited)
177,500
share.
share*
of
July 22
(Friday)
Goodyear Tire & Rubber Co
Common
(Hallgarten
&
Co.;
&
fBids
Ohio
Power
Products, Inc.._Debentures
McCormtck
&
Co.; and
$1,000,000
McDowell)
July 25
Straus,
Inc
October 4
(Bids
Com.
stockholders—underwritten by Kuhn, Loeb & Co.;
Brothers; Clark, Dodge & Co.; and Salomon Bros.
&
Hutzler)
1,041,393 shares
&
Co.
Webster
Inc.
Securities
Curtis;
TelAutograph
(Offering to
and
by
invited)
Debentures
$35,000,000
(Wednesday)
local
18
to
be
and
Stern
Brothers
&
-Preferred
dealers)
$3,000,000
Bonds
Corp.;
Co.)
New York
Webber,
Corp
stockholders—no
Jackson
■
&
l
$1,000,000
Debentures
underwriting)
$2,396,500
Southern
19
State Electric
(Bids
Preferred
Paine,
Fowler Telephone Ce., Pella, la.
May 6 (letter of notification) $260,000 of 4% first mort¬
gage bonds, series A, due May 1, 1975.
Price—At par
(in denominations of $1,000 each). Proceeds—To retire
existing debt, acquire Northwestern Bell properties ia
Leighton, la., and for conversion of both exchanges to
dial operation.
Underwriter — Wachob-Bender Corp.*
Omaha, Neb.
ic Franklin Atlas Corp.
July 6 (letter of notification) $150,000 of 10-year 6%
convertible debentures due July 15, 1965 and 149,000
shares of class A stock-(par
10 cents), both issues
carrying options to purchase class B stock. Price—For
debentures, at par; and for class A stock $1 per share.
Wall
ness
$8,500,000
space
working capital; for exploitation,
and for marketing of "Tropicheater.
Office — Pittsburgh, Pa.
Underwriter—Barrett Herrick & Co., Inc., New York.
Proceeds—For
(Tuesday)
invited)
infra-red
system;
general corporate purposes.
Office— 80
St., New York 5, N. Y. Business— Real estate, busi¬
ventures and other commercial operations. Under¬
writer—None.
October
shares
others)
(Tuesday)
& Gas Co
County Electric Co.__
(Bids
Southern Colorado Power Co
&
Bonds
$10,000;000
.Common
333,848
(Stone
be
Oct.
July 27 ( Wednesday)
Ripley
(Tuesday)
Light Co
(Expected
Worcester
Co
to
October 5
Pacific Power &
Common
to
(Harriman
$22,000,000
EDT)
noon
Public Service Electric
Inc.)
$300,000
Telegraph Co
Interstate Securities
EDT)
a.m.
September 27
(Bids
Western Nebraska Oil & Uranium
Co.,
Lehman
Bonds
11
Pacific Power & Light Co
(Hallowell, Sulzberger & Co.; and Baruch Brothers & Co.,
$1,500,000 debentures and 300,000 shares of stock
(Offering
$6,000,000
Blosser
(Monday)
(Israel & Co.)
EDT)
a.m.
Co
(Bids
Industrial Hardware Mfg. Co., Inc.
Debentures & Common
Western Union
11
Proceeds—For
"Totosave"
Ray"
Preferred
Ohio Power Co
(Offering to stockholders—underwritten by Dillon, Read
& Co. Inc.) 912,512 shares
Ma^emont Automotive
Sept. 20 (Tuesday)
_
to
be
(Wednesday)
&
Gas
invited)
1
November 9
Corp
$25,000,000
Common
to
be
invited)
500,000 shares
Insurance
Co.,
Berkeley, Calif.
1,000,000 shares of common stock (par $10).
Price—$22 per share. Proceeds—For capital and surplus.
June 6 filed
life, title and
University Avenue, Berkeley.
Continued on page 42
Business—All insurance coverages, except,
(Wednesday)
Co.
(Bids
Freedom
Bonds
mortgage.
Office—2054
The Commercial and Financial Chronicle
«
Thursday, July 14, 1955
by Uni-Insurance
company
Service Corp.
Colo.
Fremont Uranium Corp., Denver,
April 22 (letter of notification)
mon stock
(par 10 cents). Price
mining
Proceeds—For
Office—235
expenses.
Ivy
St.,
Underwriter—L. A. Huey Co., same city.
Denver, Colo.
Inc., Alexandria, Va.
Enterprises,
GAD
600,000 shares of com¬
— 50 cents per share.
(letter of notification) 260,000 shares of com¬
(par 10 cents).
Price—$1 per share. Pro¬
March 15
ceeds—For
purchase
of
Underwriter—T. J.
factory
Vernon
Mount
Office—1710
capital.
working
and
Avenue,
Alexandria,
Va.
Washing¬
O'Connor and Associates,
ton, D. C.
Inc.
Dec. 15 filed 300,000 shares of common stock (par $1).
Price—$5 per share. Proceeds—For plant expansion, new
equipment, inventory and working capital.
Office—
Huntington Station, L. I., N. Y. Underwriter—S. D. Ful¬
ler & Co., New York.
General Telephone
Co. of Wisconsin
(7/19)
stock
Price—To be supplied by amendment. Pro¬
bank loans and for new construction.
Madison, Wis. Underwriters — Paine, Webber,
& Curtis and Stone & Webster Securities Corp.,
(par $100).
ceeds—To
Jackson
naissance
stock (no par;.
repay
both of New York.
345,534 shares of common stock (par $1)
to be offered for subscription by common stockholders
filed
Engineering
Interstate
of
Corp.
share-for-share
a
on
June 10 filed 657,713
tion
selling' stockholders. Business—Automobile sales
direct lending to consumers on automobiles
other personal property and the writing of credit
and accident and health insurance in
connection
certain
expire
July 21 ion the basis of one new share for each 10 shares
held; rights to expire on Aug. 8. Price—To be supplied
by amendment. Proceeds—For expansion and working
capital.;!? Underwriter
—
Dillon, Read & Co., Inc., New
York.
Great Eastern Mutual
June 23
Life Insurance Co.
(letter of notification) 45,583 shares of common
to be offered for subscription by stock¬
holders of record June 10 in the ratio of one new share
stock
shares held; stock not
three
subscribed for by
Sept. 10, 1955 will be offered to public. Price—To stock¬
holders, $3 per share; and to public, $5 per share. Pro¬
ceeds—To increase capital and surplus accounts. Office—
210
Boston
Bldg., Denver,
Colo. Underwriter—None. *
it Great Lakes Growers, Inc., Lake City, Pa.
June 20 (letter of notification) 500 shares of common
Proceeds—For
improvements to building and warehouse (frozen foods);
and for working capital. Underwriter—None.
Price—At
stock.
par
($100 per share).
Great Yellowstone Uranium Co.
June 29
,
1,200,000 shares of com¬
(letter of notification)
ginia St., Reno, Nev. Underwriters—Cromer Brokerage
Co. and Walter Sondrup & Co., both of Salt Lake City,
Utah.
Harley Patents, Inc.
April 6 (letter of notification) 10,000 shares of capital
stock (par 10 cents.) Price—$1.50 per share. Proceeds—
For working capital. Office—580 Fifth Ave., New York
36, N. Y. Underwriter—E. E. Smith Co., same city..
Hawk Lake
Uranium
Corp.
April 12 filed 200,000 shares of common stock (par 10
cents). Price—$1.50 per share. Proceeds — For mining
etc.
expenses,
City, will act
•
Herold
June
Underwriter—Dobbs
as
Radio
&
Co., New
York
agents.
&
Electronics
N. Y.,
—
Weill, Blauner & Co., Inc., New York,
and'Hallowell, Sulzberger & Co., Philadelphia, Pa.
Offering—Expected today (July 14).
Home-Stake
Production Co., Tulsa,
Okla.
May 12 filed 60,000 shares of capital stock (par $5) and
1,000 debentures (par $100) to be offered for sale in
units
of
60
shares
of stock and one $100
debenture, or
multiples thereof. Price—$400 per unit. Proceeds—For
working capital. Underwriter—None. O. Strother Simp¬
son, of Tulsa, Okla., is President.
Horseshoe
March 16
Bend Uranium, Inc.
(letter of notification) 150,000 shares of
stock (par one cent).
—For
Uranium Corp.,
Continental
Nev.
expenses.
Denver, Colo.
-
Kentucky Harness Racing Association, Inc.
June 20 (letter of notification) $280,000 of 6% 10-year
cumulative income debentures and 28,000 shares of com¬
stork
mon
(par
one
cent)
centage of profits due from the distribution of
Proceeds—To present holders, including
homa."
$1,000 debenture and 100 shares of stock. Price—$1,001
per unit.
Proceeds—For purchase of land, construction
of proposed harness racing plant, and working capital.
Office—Versailles, Ky. Underwriter—None.
Price—$2
exploration and development
share.
Proceeds
expenses.
Office—
per
South, Salt Lake City, Utah. Underwriters
Anthony Securities Corp., New York; Lawrence
Hays Co., Rochester, N. Y., and Ned J. Bowman Co.,
—James
Salt Lake City, Utah.
April 26 filed 500,000 shares of
company
and
construction
of
are
common
stock
(no par),
be offered for account of
to
Price—$1
model
of
per
share.
"Horton
and expenses incident thereto.
Proceeds—For
Wingless
Aircraft"
Underwriter—None.
Humble
Sulphur Co., Houston, Texas
April 25 filed 500,000 shares of common stock (par 10).
Price
$1.20 per share. Proceeds—For exploration for
sulphur and related activities. Underwriter—Garrett &
Co., Dallas, Texas.
ceeds—For
mining expenses. Office—1946 S. Main St.,
City, Utah. Underwriter
Guss & Mednick
Co., Salt Lake City, and Moab, Utah.
of 4V2%
prior
convertible
a
were
&
City,
by
amendment.
by
retire out¬
oil and gas
Co., New York; and Rau-
•
same
City, Utah.
Underwriter
—
Guss & Mednick
!
June 30 (letter of notification)
Under¬
writer—None.
Kroehler Mfg. Co., Naperville, III. (7/20)
28 filed 216,828 shares of common stock (par
of which 160,328 shares are for account of company
Transit shares.
June
$5),
and
56,500 shares for account of selling stockholders. Price—
To be supplied by amendment. Proceeds—For expansion
[
Leborn Oil &
June 8
stock.
par
—
(letter of notification)
15
stock (par one
(five cents per share). Proceeds—
Office — 124V2 South Main St.,
C.
Bliedung, Washington, D.
Plantations,
Mehadrin
'
Inc.,
New York
April 28 filed 70,000 shares of common stock (par $10).
Price—$10.75 per share.
Proceeds—For acquisition of
and other gen¬
Business—Production and sale
fruits in State of Israel; also plans to grow sub¬
additional
groves
and working capital
eral corporate purposes.
Of citrus
(letter of notification) 6,000,000 shares of capital
Price—At
Philadelphia, Pa.
300,000 shares of com¬
cent). Price—$1 per share. Proceeds
—For working capital, etc. Office—825 Western Savings
Fund Bldg., Philadelphia, Pa.
Underwriter — Carl J.
mon
tropical fruits.
Uranium Co.
Statement effective May 11.
Medical Abstracts, Inc.,
June
LeBlanc Medicine Co., Inc., Lafayette, La.
April 6 filed 1,000,000 shares of common stock (par 10
cents).
Price—$1 per share.
Proceeds—For purchase
of land, plant, warehouse, office building and equip¬
ment; and additional working capital. Business—Proc¬
essing, packaging and merchandising of new proprietory
medicine, KARY-ON. Underwriter—None.
148,000 units, each to
Mechling (A. L.) Barge Lines, Inc., Joliet, III.
March 31 filed $837,252 of instalment note certificates be¬
ing offered in exchange for the 3,578 shares of authorized
ind issued common stock of Marine Transit Co. at rate
of $234 per share. The balance of $1 of a total purchase
offer price of $235 per share is to be paid in cash. The
exchange will be contingent upon acceptance of the
offer by holders of not less than 81% of the Marine
(John), Inc., Jamaica, N. Y. (7/19)
1,000 shares of 6% cumu¬
lative preferred stock.
Price—At par ($100 per share).
Proceeds—For improvements. Business—Meat products.
it Krauss
Ave., Jamaica, L. I., N. Y.
(7/15)
consist of one share of
preferred and between one-half and one
share of
common
stock.
Price —To be supplied by
amendment.
Proceeds—To pay off bank loan which the
company recently secured in connection with its pur¬
chase of approximately 99.5% of the outstanding capital
stock of the Waterman Steamship Corp. Underwriter—
White, Weld & Co., New York.
city.
94th
less than 80% (19.200
Underwriter — None,
$3 cumulative
Knapp Uranium & Development Co.
April 21 (letter of notification) 20,000,000 shares of
common stock. Price—At par (one cent per share). Pro¬
ceeds—For mining expenses. Office—2174 S. Main St.,
Co.,
(par $1)
will expire on July 15, is subject to
McLean Securities Corp.
June 8 filed
scher, Pierce & Co., Dallas, Texas.
Salt Lake
offer, which
The
Proceeds—To
Underwriters—Allen &
shares of common stock
acceptance by the holders of not
shares) of the stock of Auburn.
Statement effective June 28.
standing bank loans and for exploration of
leases.
96,000
in exchange for all the issued and out¬
standing capital stock of Auburn Trust Co., Auburn,
N. Y., at rate of four shares of Marine Midland stock for
each share of Auburn stock held of record July 1, 1955.
and 100,000 shares for the account of the Murchifinancial interests of Texas.
Price—To
supplied
filed
being offered
Sons,
^ Kirby Oil- & Gas Co., Houston, Texas (7/28)
July 8 filed 200,000 shares of common stock (par $1),
of which 100,000 shares are for the account of the com¬
pany
McCormick & Co. and
111.
j
and
New York;
Co.,
20
June
them on April 27, 1955. Agents—
and Sutro Bros. & Co., New York
have agreed to solicit tenders.
acquired
&
garten
Straus, Blosser & McDowell, both of Chicago,
• Marine Midland Corp.,
Buffalo, N. Y.
on
Gregory
loans.
bank
July 15. These preferred shares are part of
block of 674,380 shares owned by Deep Rock which
expire
(7/22)
supplied by amendment. Proceeds—To reduce
Office—Chicago, 111. Underwriters—Hall-
—To be
preferred stock (par $25), which were offered June 27 in
exchange for 150,000 shares of Deep Rock Oil Corp.
common
stock on a three-for-one basis; the offer to
Fpr mining expenses.
Inca Uranium Corp., Salt Lake
City, Utah
April 25
(letter^ of notification) 15,000,000 shares of
capital stock. Price—At par (one cent per share). Pro¬
Lake
shares
Products, Inc.
$1,000,000 of convertible sinking fund con¬
vertible subordinated debentures due July 1, 1970. Price
repayment of bank loan of Canadian subsidiary.
Underwriter—White, Weld & Co., New York.
Vegas, Nev.
100,000 shares for account bt William E.
Horton, President.
450,000
Kuhn,
Co.;
Maremont Automotive
and
Horton Aircraft Corp., Las
of which 400,000 shares
filed
6
&
June 30 filed
,J(err-McGee Oil Industries, Inc.
June
"Okla¬
United California Theatres, Inc.; Harris,
Upham & Co.; Prudential Theatres, Inc.; Carl M. Loeb,
Rhoades & Co.; Brown Brothers Harriman & Co.; and;
United Artists Theatre Circuit, Inc.
*
r*
Loeb
be offered in units of a
to
•*,.
Theatre Corp., New York
May 23 filed 122,300 shares of common stock (par five':
cents), 6,000 outstanding warrants for the purchase of
439,800 shares of common stock (as well as the common
stock), and 6,000 outstanding units of "Oklahoma" par¬
ticipation
certificates (each certificate entitling the
holder to receive 1/6,000th of 5/12ths of Magna's per-,
Price—50 cents per share. Proceeds
Office—206 N. Virginia St., Reno,
Underwriter—Whitney, Cranmer & Schulder, Inc.,
mining
Under-r..
Bldg., Salt Lake City, Utah.
Magna
Reno, Nev.
stock (par 10 cents).
—For
Bank
writer—Havenor-Cayias. Inc., same city.
May 12 (letter of notification) 600,000 shares of common
Office—144-27
com¬
10 West 2nd
Salt
of ordinary common
—Natanya, Israel, and New York, N. Y.
be
Corp.
28
Underwriters
A.
(letter of notification) 3,000,000 shares of conw
(par one cent).
Price—10 cents per share.
Proceeds—For mining
operations. : Office—Suite 1003,
stock
mon
stock
(par one Israeli pound). Price—$10 per share. Proceeds
—For capital expenditures. Underwriter—None. Offices
Kachina
.■■f*
May 23
Ltd.
Plantations,
24,900 shares
son-Richardson
(letter of notification) 100,000 shares of com¬
mon stock (par 25 cents).
Price—$3 per share. Proceeds
—For working capital.
Office — Mount Vernon, N. Y.
mon
Pecan
filed
28
The v
Uranium & Oil, Inc.
Lutah
City, Mo.
Israel
Feb.
Langley & Co.; Blyth & Co., Inc.; and
Corp.; all of New York.
First Boston
stock
(par 10 cents). Price—25 cents per share.
Proceeds—For mining operations. Office—139 N. Vir¬
mon
Kansas
(par $1)
for each
share.
to
writers—W. C.
activities.
financing
July 18. The remaining 33,543 shares are being
employees by company.
Price—$20.50 per
Proceeds — For construction program.
Under- >
on
offered
Underwriters—Harriman
Ripley & Co. Inc., New York; and Stern Brothers & Co.,
its
(par $10),
624,170 shares are being offered for subscrip¬
by common stockholders of record July 1 on the,
basis of one new share for each 10 shares held; rights to ,
of which
7 filed 333,848 shares of common stock (par $5).
Price—To be supplied
by amendment.
Proceeds—To
with
>
10 cents).
(par
Long Island Lighting Co.
i
shares of common stock
City, Mo.
July
life
of common
Price—50 cents per share. Pro-T
Office—1100 Fidelity Union '
Life Bldg., Dallas, Tex.
Underwriter — ChristopuiosNichols Co., Las Vegas, Nev.
stock
(7/27)
and
Inc.
ceeds—For mining expenses.
financing,
Goodyear Tire & Rubber Co., Akron, Ohio (7/22)
June 28 filed 912,512 shares of common stock (par $5)
to be offered for subscription by stockholders of record
,
for acquisition of additional proper¬
Lone Star Uranium & Drilling Co.,
Proceeds — For machinery
and equipment; and for working capital. Underwriters—
Dempsey-Tegeler & Co., St. Louis, Mo.; Cruttenden &
Co., Chicago, 111.; and Fairman & Co., Los Angeles, Calif.
^ Interstate Securities Co., Kansas
surveys;
.April 7 (letter of notification) 570,000 shares
Price—$2 per share.
basis.
Co., Inc., Casper, Wyo.
June
Calif.
Adjusteze Corp., Anaheim,
Interstate
June 23
v
Livingston Oil Co., Tulsa, Okla. (7/18-21)
16 filed 742,000 shares of common stock (par 10
cents). Price—$2.75 per share. Proceeds—For purchase 1
of properties and working capital. Underwriter — Van
Alstyne, Noel & Co., New York.
per share.
Proceeds—To 12 selling stock¬
Underwriter—Franklin Securities Co., Dallas,
holders.
*
ties; and for working capital and other purposes. Under¬
writer—Peters, Writer & Christensen, Inc., Denver, Colo.
Proceeds—For investment.
Co., Dallas, Tex.
Price—$5.75
Homes,
July 1 filed 10,000 shares of cumulative preferred
—
Atlanta, Ga.
Texas.
General
Office
Little Star Uranium
International Fidelity Insurance
March 30 filed 110,000 shares of common
Alabama
May 25 filed 5,000,000 shares of common stock (par 10
cents). Price—15 cents per share. Proceeds—To pur-/
chase machinery and equipment; for drilling ana recon-
July 6 filed 40,000 class "A" investment shrs. and 12,500
class "B" common stock shares. Price—$40 and $10 per
share, respectively.
of
pany.
Inc., New York.
stock
mon
Co.
—
plied by amendment. Proceeds—To purchase Hugh H.
Eby Co. and Wirt Co. Underwriters—Hallowell, Sulz¬
berger & Co., Philadelphia; and Baruch Brothers & Co.,
Investors Syndicate, Inc.,
Insurance
750,000 shares of class B (non-voting; com-n
mon stock
(par $1). Price—$3 per share. Proceeds—To ,,
increase capital and surplus.
Office—Gadsden, Ala. Un- i
derwriter
None, sales to be handled by Burius Ran-:
d^lph Winstead, Secretary and Treasurer of the com¬
12
Insurance
Accident
and
June 2 filed
(amendment) $l,5UU,o00 of 5% uebentures due
1975 and 300,000 shares of common stock (par 50 cents),
of which 85,000 shares are to be sold to Seymour and
Bernard Offerman at $5 per share.
Price—To be sup¬
May
Calif., c/o Ray B. Wiser, President. Underwriter—Any
underwriting agreement will be made on behalf of this
Life
(7/25-29)
Hardware Mfg. Co.
Industrial
41
Continued from page
•
...
(202)
42
Underwriter—None.
Merritt-Cbapman & Scott Corp., New York
June
Newcastle, Wyo. Underwriter — Mid-American Securi¬
ties, Inc. of Utah, Salt Lake City, Utah.
shares
it Lemon Bay Groves, Inc., Ocala, Fla.
shares of common stock (par
in exchange as follows: 102,250
class A stockholders of Devoe & Raynolds &
filed
28
$12.50)
to
be
314,718
offered
6,621
June
acres.
N.
29
(letter
of notification)
Underwriter
—
Alton
W., Washington, D. C.
C.
contracts
Miller,
covering 250
1122-19th
St.,
to
Co., Inc.
on
ers
on
basis
of
1%
shares for each Devoe share;
shares to class B common stockholders of Devoe
lV3-for-l basis; 127,623 shares to common stockhold¬
of New York Shipbuilding Corp. on a share-for-share
basis;
53,324
shares
to
common
stockholders of
Ten-
Volume 182
i
Number 5446... The Commercial and Financial Chronicle
■:
Products & Chemical Corp. on a 1%-for-l
basis;
13,453 shares to common stockholders of Newport Steel
Corp. on a l-for-2.1 basis; 10,899 shares to common^
nessee
stockholders of Marion Power Shovel Co.
Under¬
'■«
*
writer—None.
"as
July 13
on
the basis of two
Powder River Pipeline, Inc., Billings, Mont.
May 31 (letter of notification) $300,000 of 5V2% 10-year
debentures. Price—At par (in denominations of $1,000
each). Proceeds—For expenses incident to oil and gas
activities. Underwriter—The First Trust Co. of Lincoln,
Neb.
May 25 tiled 75,000 shares of common stock to be of¬
fered for subscription by stockholders of record June 1
on
a
l-for-4 basis.
Price—$2 per share. Proceeds—
For capital and
Fort Wayne, Ind.
basis.
•
Republic Insurance Co.
10 filed 100,000 shares of common stock (par $5)
being offered for subscription by stockholders of record
June 30
rarily delayed.
the
on
basis of
held; rights to expire
Millsap Oil & Gas Co.f Siloam Springs, Ark.
(letter of notification) 599,200 shares of com¬
Proceeds—To
March 17
ume.
stock
mon
(par 10 cents). Price — 50 cents per share
Proceeds—For oil and gas activities. Office—518
Main
St.,- Sdoam Springs, Ark. Underwriter—Dewitt Invest¬
ment
Co., Wilmington, Del.
Mitchell
new
share
for
each
diversify and
Underwriter—The First
Corp., New York.
(par $5).
sold for
common
convertible
common
Of the latter,
100,000 share are to be
of the company and 60,000 shares for
Chicago Corp. Price—To bte supplied by
account
stock (par 10 cents). Price—50 cents
per share. Proceeds
—For mining expenses. Address—P. O. Box
301, Mount
account of the
Vernon, Wash. Underwriter—Standard Securities Corp.;
Spokane, Wash.
preferred stock and for fleet replacement program. Of¬
fice—San
Francisco, Calif. Underwriter—A. G. Becker
&
Moab King, Inc.
April 4 (letter of notification) 10,000,000 shares of
stock.
mon
Price—At
amendment.
City, Utah.
city.
Underwriter
Potter Investment Co., same
<
Proceeds—To retire
a
small issue of junior
Co.,
mining
costs.
City, Utah.
Office—716
Underwriter
Moab
Park
Angeles, Calif.
—
Pacific
com*
Blyth & Co., Inc. and Hornblower
—
&
6
Carlo
Uranium
& Oil
Corp.
June 6
(letter of notification) 3,000,000 shares of com¬
mon stock
(par two cents). Price—10 cents per share.
Proceeds
For mining expenses.
Office — 811 Boston
Bldg., Denver, Colo. Underwriter—Amos C. Sudler &
Co., same city.
Pro*
Bldg.,
Brokerage
Uranium Mines,
Palestine Economic Corp., New York
filed 50,000 shares of common stock (par $25)
$2,000,000 of five-year 5% notes, series 1955. Price
—Of stock, $28 per share; and of
notes, at 100% of prin¬
cipal amount. Proceeds — For further development of
(letter of
July 1
and
—
Israel
industry; development of urban and suburban
extension of credit; financing of exports to Israel;
and working capital and general corporate purposes.
Underwriter—None, sales to be handled through com¬
pany officials and employees.
Morning Sun Uranium,
Inc., Spokane, Wash.
T
June 14 (letter of notification)
700,000 shares of com¬
mon
stock (par 10 cents).
Price — 25 cents per share.
Proceeds—For mining expenses.
Bldg., Spokane, Wash.
same city.
Me?
Office
—
415
areas;
Paulsen
Underwriter—Pennaluna &
Co.,
Panama
Minerals, Inc., S. A. (Republic of
Panama)
', '4\ i';"
/
,
ell
(John) & Co., Ottumwa, Iowa"
(letter of notification) 16,000 shares of capital
(no par) to be offered in exchange for a like
r
June 30 filed
400,000 shares of common stock
share. Proceeds—For mining
Office—Denver, Colo. Underwriter—None.
March 31
stock
number of shares of John J. Felin
Co., Inc., plus
a
Price—$1.25
cash
per
(par $t).
expenses.
Mortgage Associates, Inc., Philadelphia, Pa.
7 (letter of notification)
20,000 shares of 60-cent
convertible
preferred
shares of stock of Power Coal
of
stock
3,565,000 shares for stock of Homestead Coal Co.
common
stock (par $5) and 20,000 shares
(par 10 cents). Price—For preferred,
$10 per share; and for common, $2.50 per share. Proceeds
—For construction loans and acquisitions.
Underwriters
—Rarnbo, Close & Kerner Inc., Philadelphia, Pa.; and
J, S. Hope & Co., Scranton, Pa.
713-for-l
Co.
Mountain
as
Fuel
23
on
the basis of
one
new
share for each
to
Underwriter—The First Boston Corp., New York.
and
for
exploration and other costs.
Underwriter—M. Raymond & Co., Inc., New York,
'-c
National
Credit
Corp., Phoenix, Ariz.
May 6 tiled 300,000 shares of common stock (par $1).
Price—$3 per share.
Proceeds—For working capital.
Underwriter—None.
on
basis of two
shares for each
new
seven
shares held; rights to expire on July 15.
share.
Proceeds—To
repay
bank loans
Price—$51
construction.
Underwriter—
Office—New Haven,
Conn.
and
for
per
new
None.
Norlhport Water Works Co.
23 (letter of notification) 4,438 shares of common
stock (no par) to be offered for subscription by stock¬
June
holders
on
the
basis
of
one
share
for
each
372
shares
held (with an oversubscription privilege). Price—To be
supplied by amendment. Proceeds—To repay bank loans
and accounts
50 Church
Oasis
payable and for
new
St., New York, N. Y.
construction.
Office—
Underwriter—None.
Uranium & Oil
Corp., Fort Worth, Texas
(letter of notification) 265,000 shares of common
(par 50 cents). Price—$1 per share.
Proceeds—
June 8
stock
on
a
44-for-l
a
co.
on
basis; 611,064 shares for stock of Key
54-for-l basis; 546,000 shares for stock of
a
stock
of
Alston
on
a
Coal
60-for-l basis;
Co.
on
a
100,000 shares
10-for-l
be
acquired.
Offer will expire
on
July
basis;
15.
,
and
Under¬
Pelican Uranium Corp., Salt Lake City, Utah
May 25 (letter of notification) 300,000 shares of common
(par five cents). Price—10 cents per share. Pro¬
ceeds— For mining expenses:"" Office — 688
East 21st
South, Salt Lake City, Utah.
Underwriter — TransWestern
Brokerage Co., New Orleans, La., and Salt
stock
Lake
For uranium and oil exploration.
Bldg., Fort Worth, Tex.
Office—Fortune Arms
Underwriter—Standard Securi¬
ties, Inc., Salt Lake City, Utah.
share. Proceeds—»
—
8255 Central
Underwriter—None.
Uranium
&
Co., Denver, Colo.
May 27 (letter of notification) 6,000,000 shares of com¬
stock (par one cent). Price—Five cents per share.
Proceeds—For mining
operations.
Office—636 South
Broadway, Denver, Colo.
Co., Inc., same city.
Revere
Underwriter—Lester Gould &
Realty, Inc., Cincinnati, Ohio
$1,000,000 of 5^% cumulative convertible
March 8 filed
debentures due Jan. 1, 1980 and 25,000 shares of common
stock (no par). Price—Par for debentures and $100 per
share for stock. Proceeds — To purchase real estate or
Interest therein.
Underwriter—Stanley Cooper Co., Inc.,
Cincinnati, O.
Royal Uranium Corp.
May 26 (letter of notification) 200,000 shares of common
stock (par five cents).
Price—At market (total not to
exceed $150,000). Proceeds—For working capital. Office
'—Walker Bank Bldg., Salt Lake City, Utah. Underwriter
—Whitney & Co., same city. No general offer planned.
Saint Anne's Oil Production Co.
May 9
(letter of notification) 20,000 shares of common
(par $1) to be first offered to stockholders. Price
—$6.25 per share. Proceeds — For oil and mineral and
related activities/'Office—North wood, Iowa. Underwriter
—None.
City, Utah.
Permian Basin Uranium Corp.
Regis Paper Co.,
New York
June 28 filed 329,327 shares of common stock (par $5) to
be offered in exchange for common stock of General
Container Corp.
one
General
on
share.
basis of 2% shares of St. Regis for
Offer is conditioned upon St. Regis
obtaining 807o of outstanding General stock. Underwriter
—None.
San Juan Uranium Corp.
June 23
stock
(letter of notification) 89,850 shares of common
represented by options issued to
per share.
Proceeds—To
selling stockholder. Office — Fidelity Bldg., Oklahoma
City, Okla.
Underwriter — E. W. Whitney, Wewoka,
cent),
(par one
Price—50 cents
underwriters.
Okla.; and through company.
> Sanitary Products Corp., Chicago, III.
June 27 (letter of notification) 15,000 shares of common
stock (par $1).
Price—At market (estimated at $1.62V2
to
$2 per share).
Proceeds—To selling stockholder.
Office—10 So. LaSalle St., Chicago, 111.
Underwriter—
Cruttenden & Co., Chicago, 111.
Santa Fe Uranium
May 26
mon
& Oil
Co., Inc.
2,959,500 shares of
(letter of notification)
stock
(par one
Proceeds—For
cent).
Price
mining operations.
dence
—
Uranium
Saxon
Mines
Ltd.,
per
com¬
share.
Office—416 Indepen-
Bldg., Colorado Springs, Colo.
lumbia Securities Co., Denver, Colo.
•
10 cents
Underwriter—Co¬
Toronto,
Canada
(letter of notification) 640,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
Foe mining costs.
Office—613 Simms Building, Albu¬
querque,
N. Mex.
Underwriter — Western
Securities
April 29 filed 1,500,000 shares of common stock (par $1).
Corp., Salt Lake City, Utah.
New York.
•
New Haven Water Co.
15, 1955
basis;
June 2
May 17 tiled 40,000 shares of capital stock (par $50) fcieing ottered for subscription by stockholders of record
June
18-for-l
writer—None.
Multi-Minerals Corp., Salt Lake City, Utah
*
May 5 tiled 1,500,000 shares of common stock (par one
cent).
Price—$1 per share.
Proceeds—For payment on
claims
an
is
held; rights to expire on July 18. Price—$25.50
share. Proceeds — To finance expansion program.
uranium
on
panies owned by the Sinclair firm. The exchange offer
conditioned upon the acceptance of the offer by at
least 80% of the total number of shares of each company
10
shares
per
Co.
81,161 shares for all of the properties of Sinclair Mines,
Inc. (other than shares of any of the above seven com¬
tiled
ot June
Oil
per
Office
mon
basis; 794,200 shares for stock of Sinclair Coal
Broken Aro Coal Co.
Supply Co.
193,990 shares of capital stock (par $10)
being oitered for subscription by stockholders of record
8
on
Coal
for
June
Ave., Skokie, 111.
Rebel
St.
Peabody Coal Co., Chicago, III.
June 6 filed 6,492,164 shares of common stock (par $5)
being offered in exchange as folows: 578,739 shares for
stock of Sentry Royalty Co. on a 147-for-l basis; 216,000
June
Price—$17.50
corporate purposes.
Stock
•
Underwriter—None.
payment.
July 15.
on
—
Inc.
notification) 6,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses.
Office
706 Newhouse
Bldg., Salt Lake City, Utah.
Underwriter—Mid-Con¬
tinent Securities, Inc., same city.
June
McNally & Co., Skokie, III.
June 9 (letter of notification) 2,599 shares of common
stock (par $10) being offered for subscription by stock¬
holders of record June 1 on a 1 for 95 basis; rights to
expire
due 1985.
Price—To be supplied by amendment. Proceeds—To redue short-term bank loans. Office—Los
city.
same
Monte
.
Rand
For general
Corp. (7/20)
$20,000,000 of 3V2% debentures
June 28 filed
•
Newhouse
—
•
Chicago, 111.
Weeks.
Salt Lake
New York..
Finance
Moab
ceeds—For
Pyramid Electric Co.
May 3 filed 50,000 shares of common stock (par $1).
Price—To be supplied by amendment.
Proceeds — To
selling stockholders. Underwriter — S. D. Fuller & Co.,
Co. Inc.,
Underwriters
Valley Uranium Co.
May 16 (letter of notification) 2,000,000 shares of
mon
stock.
Price—At par (10 cents per share).
•
Pacific
'
com¬
(one cent per share). Pro¬
Office—210 Zions Saving?
par
ceeds—For mining expenses.
Bank Building, Salt Lake
r
Price—$21 per share.
increase its premium vol¬
preferred stock (par $25) and 160,000 shares of
stock
share
^ Prudential Industries, Inc., Philadelphia, Pa.
(letter of notification) 31,500 shares of class A
common stock
(par $1).
Price—$9.50 per share.
Pro¬
ceeds—For working capital.
Office—Castor and Ken¬
sington Avenues, Philadelphia, Pa.
Underwriters —
AuChincloss, Parker & Redpath and Boenning & Co.,
both of Philadelphia, Pa.
June 29
Aug. 8.
• Pacific Far East Line, Inc. (8/2)
July 12 filed 80,000 shares of cumulative
'
May 13 (letter of notification) 500,000 shares of
one
on
Office—Greensburg, Pa.
Boston
Mining Co., Inc., Mount Vernon, Wash.
Bldg., Billings, Mont.
—
Old
June
surplus.
Office—229 West Berry St.,
Underwriter—None. Offering—Tempo¬
Office—Fratt
Primary Minerals Corp.
M&y 24 filed 1,400,000 shares of common stock (par one
cent). Price—50 cents per share. Proceeds—For acquisi¬
tion of mining equipment and other mining expenses.
Office
San
Francisco, Calif.
Underwriter — General
Investing Corp., New York. Statement to be amended.
—
Midwestern United Life Insurance Co.
and
Un¬
Office—Houston, Tex.
derwriter—None.
share for each
new
Proceeds—For working capital
speculation."
a
43
general corporate purposes.
held; rights to expire on July 28. Murphy
Corp., which owns 530,450 shares (527c) of the 1,015,500
common shares outstanding, intends to exercise
rights to
purchase at least 104,230 of the 117,877 shares to which
it is entitled. Price—$8 per share. Proceeds—For
equip-,
ment, to acquire oil and gas interests, exploration and
possibly drilling costs; and to pay ail or a portion of a
$705,000 mortgage note. Office—New Orleans, La. Un¬
derwriters
Morgan Stanley & Co. (New York) and
Reinholdt & Gardner (St. Louis, Mo.) on a best-efforts
—
Ave., New York 17, N. Y.
Drilling & Exploration Co.
225,666 shares of common stock (par $1)
being offered for subscription by common stockholders
filed
nine shares
★ Mid-Hudson Natural Gas Corp.
July 1 (letter of notification) 500,000 shares of common
stock (par five cents). Price—50 cents per share.
Pro¬
ceeds
For exploration and development
costs, etc.
Madison
Ocean
June 23
of record
on a l^-for-l
basis; and 548 shares of class B common stockholders of
The Osgood Co. on a 1-for-l1/^ basis. Underwriter—None.
Office—295
•
(203)
Service, Inc. (7/18)
61,302 shares of common stock (par $2).
Price—To be supplied by amendment.
Proceeds — For
working capital. Office—Signal Hill, Calif. Underwrit¬
Shoni Uranium Corp., Riverton, Wyo.
April 21 (letter of notification) 2,000,000 shares of com¬
ers—Bateman, Eichler & Co., First California Co., Inc.
and William R. Staats & Co., all of Los Angeles, Calif.
Riverton, Wyo.
Denver, Colo.
Petrolane Gas
June 24
filed
Pictograph Mining & Uranium Co., Inc. (8/8)
2,400,000 shares of common stock (par one
cent).
Price—25 cents per share.
Proceeds—For ex¬
ploration and mining operations and for purchase of
equipment and additional claims or leases when justi¬
fied.
Office—Edgemont, S. D. Underwriters—Shaiman
& Co., Denver, Colo.; and J. H. Lederer Co. and McGrath
Securities Corp., both of New York City.
June 15 filed
Price—40
and
cents
liabilities.
mon
per
share.
Proceeds—For exploration
repay advances and other
Deeaetano Securities Corp.,
working capital; also to
Underwriter
stock
Proceeds
—
Statement effective July 6.
(par
—
For
cent). Price — 15 cents per share.
mining expenses. Address — Box 489,
one
Underwriter
—
Melvin F.
Schroeder,
Shumway Uranium, Inc., Moab, Utah
(letter of notification) 1,200,000 shares of com¬
mon
stock
(par one cent).
Price—25 cents per share.
Proceeds—For mining expenses. Office — 6 Kirby St.,
June 20
Moab, Utah.
ver,
Underwriter—Skyline Securities Inc., Den¬
Colo.
Siboney
Development &
Exploration Co., Tulsa,
Okla.
,
Pioneer Mortgage & Development Corp.
April 27 filed 300,000 shares of common stock (par $1)
with warrants attached entitling the holder to purchase
one additional share at prices
ranging from $13 to $20
depending upon the exercise date.
Price—$10 per share
June
(par 10
Proceeds
geological and geophysical surveys and for drilling
27 filed 2,000,000
cents).
—For
shares of common stock
Price—To be supplied by amendment.
Continued,
on
page
44
44
The Commercial and Financial Chronicle...
(204)
Continued
from
manufacturing
43
page
writer—None.
of
&
Underwriter—Dempsey-Tegeler
dent.
Uranium
wells.
exploratory
it Texokan Oil & Mining Co.
July 1 (letter of notification) 300,000 shares of common
Co., St. Louis, Mo.
Aircraft
Silvaire
&
(letter of notification)
17
June
stock
Co.
3,000,000 shares of
com¬
Price—10 cents per share).
Proceeds—For mining operations. Office—Fort Collins,
Colo.
Underwriter—Carroll, Kirchner & Jaquith, Inc.,
mon
(par one cent).
Denver, Colo.
Sonoma
Quicksilver Mines, Inc.
April 27 filed 800,000 shares of capital stock (par 10
cents), of which 80,000 shares are to be initially offered
to public. Price—To be fixed on the basis of the market
value
the
at
which
ever
time
is
their
of
lower.
first
Purpose
sale
or
$1
share,
per
increase
To
—
facilities
and invest in other
quicksilver properties; and for work¬
Office—San Francisco, Calif. Underwriter
capital.
ing
—-Norman
R.
Southern
June
27
Whittall, Ltd., Vancouver, B. C., Canada.
Colorado
filed
ment.
Proceeds—For
writer—Stone
&
Power
Co.
shares of
20,000
ferred stock (par $50).
(7/27)
cumulative
4.72%
pre¬
Price—To be supplied by amend¬
payment of bank loans.
Under¬
Webster
Securities Corpc,
Paine, Web¬
•
Racing Corp. (7/18)
1,250,000 shares of common stock (par
10 cents). Price—$1 per share. Proceeds—For construc¬
tion and related purposes, and for operating capital and
reserve
for future expansion.
Office—West Memphis,
Ark. Underwriter—General Investing Corp., New York.
Stancan Uranium Corp., Toronto, Canada
April 18 filed 200,000 shares of cumulative convertible
preferred stock, series A (par one cent). Price—To be
supplied by amendment. Proceeds—For exploration and
development expenses and for general corporate pur¬
poses.
Underwriters—Gearhart & Otis, Inc. and F. H.
Crerie &
Co., Inc., both of New York.
Strevell-Paterson
Finance
of the
24
June 16 (letter of notification) 352,000 shares of common
stock
(par 50 cents) to be offered for subscription by
stockholders at 70 cents per share; unsubscribed shares
to be publicly offered at $85
per 100 shares. Proceeds—
For
working capital.
Salt Lake
&
Co.,
®
Sun
Feb.
Sixth
South
St.,
City, Utah. Underwriter—Harrison S. Brothers
city.
same
16
mon
Office—76 West
Hotel, Inc., Las Vegas, Nev.
filed
(as amended) 3,750,000
sto^kJjp^r
shares
of
com¬
Price—$2.50
one cent).
ceeds—To construct hotel
and
per share. Pro¬
working capital. Un¬
for
and
company
Proceeds—
to 65,000 shares for account of
up
Proceds—For
expansion
program
and
general
Underwriter—None.
corporate purposes;
and
working capital. Office—Murrysville, Pa. Un¬
derwriter—Hulme, Applegate & Humphrey, Inc., Pitts¬
burgh, Pa.
Uranium
&
Co., Inc., New York; and
Coombs & Co. of Las Vegas, Inc., Las
Vegas, Nev.
)
•
Sunshine
Park
Racing Association, Inc.
(as amended) 766,666 shares of
Nov.
18
stock
(par five cents) of which 500,000 shares
filed
(7/18)
common
to be
are
offered to public and 266,666 shares to be offered
in
Corp., Albuquerque,
Tower Finance
Corp., Chicago, III.
notification) 4,000 shares of 6%
of
New
York.
share).
series.
Price—At
($50
Trans-National
Ring Corp., Brownwood, Tex.
June 3 (letter of
notification) 575,000 shares of common
stock (par 10 cents). Price—50 cents
per share. Proceeds
—For
machinery and working capital.
Office—1812
Belle Plain
Ave., Brownwood, Texas.
UnderwriterGreat
Southwest
Securities
Tasha Oil & Uranium
May 11
Co.
Uranium & Oil Corp., Dallas, Tex.
filed 2,000,000 shares of common stock (par 20
cents). Price—To be supplied by amendment. Proceeds
—To
acquire part of properties presently subject to
option in favor of company, and for expenses incident
to mining and oil activities.
Underwriter—Garrett Bro¬
thers, Inc., Dallas, Tex.
Tungsten Mountain Mining Co., Fallon, Nev.
June 8 (letter of notification) 149,800 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
(letter of notification) 6,000,000 shares of com¬
(par one cent). Price—Five cents per share.
stock
mon
Proceeds—For mining operations.
£t., Denver, Colo. Underwriter
Jaquith, Inc., same city.
Office—1890 S. Pearl
—
Tel Autograph
Carroll, Kirchner &
Corp., Los Angeles, Calif.
(7/27)
July
1 filed $2,396,500 of convertible subordinated de¬
bentures due July 15, 1965, to be offered for
subscription
by
common
stockholders of
record July 27, 1955 on the
$500 of debentures for each 50 shares of stock
beld; rights to expire on Aug. 15. Price—To be supplied
by amendment. Proceeds—To retire
outstanding loans
from Commercial, Credit
Corp.; to purchase additional
stock of Nuclear
Consultants, Inc.; for expansion of
basis
ent
of
pres¬
merchandising activities; and for general corporate
Underwriter—None.
purposes.
Tel-Instrument Electronics Corp.
199,999 shares of
For acquisitions and
den St.,
common
Price—$1.50 per share. Proceeds—
working capital. Office—728 Gar¬
Carlstadt, N. J. Underwriter—Batkin
& Co.
New
York, N. Y.
Tennessee
Life & Service Insurance
Society
(letter of notification) 9,200 shares of common
(par $5) to be offered for subscription by stock¬
June 20
holders.
working
Price—$30
capital for
per
share.
Proceeds—To
increase
agency expansion.
Office
1409
Magnolia Ave., Knoxville, Tenn. Underwriter—None.
—
Texas Western Oil &
Uranium Co.,
June 15
Denver, Colo.
stock
Proceeds
—
address.
Jan.
17
filed
$1,500,000 of 6%
debentures due
eerially from Feb. 1, 1957 to Aug. 1, 1961, and 41,000,000
of 6%
Feb.
series B convertible debentures due
serially from
1, 1962 to Aug. 1, 1966.
Price—To be supplied by
Amendment.
Proceds—To construct and operate
facturing plant
near
Orange,
Tex., for the
Co^-p.,
Co., Salt Lake City, Utah
May 5 (letter of notification) 260,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For mining expenses. Office — Judge Bldg., Salt Lake
City, Utah. Underwriter — Northern Securities, Inc.,
Seattle, Wash.
Union Club, Inc., Hollywood, Calif.
March 1 filed 30,000 shares of preferred stock (par $50)
and 100,000 shares of common stock (par $10) to be
in
units
three
of
preferred and 10 common
unit. Proceeds—For purchase of
property, construction of hotel, athletic and health facil¬
ities, and working capital. Underwriter—None, but sales
will be made through agents.
Price—$400
per
* Universal Service Corp., Inc., Houston, Texas
July 8 filed 500,000 shares of common stock (par two
mills). Price—$2.50 per share.
Proceeds—For equip¬
ment, mining costs, oil and gas development, and other
corporate purposes. Underwriter—None.
Uranium Prince
Mining Co., Wallace, Ida.
April 18 (letter of notification) 1,750,000 shares of
stock.
mon
Price
10
—
mining operations.
cents
Address
per
—
share.
Box
com¬
Proceeds—For
709, Wallace, Ida.
Underwriter—Wallace Brokerage Co., same city.
Uranium
$600,000 of Grubstake Loans to be offered
$25 or multiple thereof. Proceeds—75%
in
U.
S.
Savings bonds and the balance
equipment and exploration
Underwriter—None.
and
development
ex¬
a manu¬
purpose
of
Uranium Technicians
June
30
(letter
stock
of
Corp., Salt Lake City, Utah
notification) 30,000,000 shares of
par).
Price—One cent per share.
Proceeds
For mining activities. Office — 1101 South
State St., Salt Lake City, Utah.
Underwriter—Andercommon
(no
—
son-Hackett Investment
same
process,
tubes, etc. Underwriter
Fort Worth, Texas.
Vanura
June 16
Proceeds
shares
of
com¬
Zone Investments Co.,
—
Uranium, Inc., Salt Lake City, Utah
(letter of notification)
stock
mon
300,000
($1 per share). Proceeds—To
rebuild and market television pic¬
tures
(par
cent).
one
For
—
mining
3,000,000 shares of
Price
—
expenses.
com¬
10 cents per share.
Underwriter
—
I. J.
Schenin & Co., New York.
formerly known
Name Change—The company
San Miguel Uranium, Inc.
as
&
Uranium
Vas
Drilling Co., Monticello, Utah
20 (letter of notification) 2,000,000 shares of com¬
June
stock.
mon
—For
Price—At par (10 cents per share).
operations.
mining
rities Inc., Denver,
Proceeds
Underwriter—Skyline
Secu¬
Colo.
Corp., Moab, Utah
(letter of notification) 10,000,000 shares of capi¬
Price—At par (three cents per share). Pro¬
ceeds—For mining expenses.
Underwriter—Moab Bro¬
June 10
tal
stock.
kerage Co. and National Securities, Inc., 368 South State
St., Salt Lake City, Utah.
Hotel
Warwick
Associates, New York
$4,250,000 of participations in partnership
June 22 filed
in
interest
Proceeds
Associates
—
To pay
in
minimum
amount
of
$10,000.
part of purchase price of Warwick
Hotel, Philadelphia, Pa.,
Under¬
and related expenses.
Washington Natural Gas Co.
May 24
(letter of notification) 238,632 shares of com¬
(par one cent), of which 192,011 shares are
and 46,621 shares for account of
stock
mon
for account of company
Co.,
same
city.
Price—$1.25
selling stockholder.
retire indebtedness and for
To
writer—Barrett
Herrick
&
per
share.
Proceeds—
working capital.
Under¬
Co., Inc., New York.
Washington Plywood Co., Inc., Lowell, Wash.
13 filed 296 shares of common stock (par $5,000).
June
purchase plywood mill of Walton Plywood
Proceeds—To
Underwriter—Albert Walter Braedt.
* Welch Industries, Inc., Houston, Texas
June 23, letter of notification)) 150,000 shares of common
stock (par 50 cents).
Price—$2 per share.
Proceeds—
For
erection
plant, machinery and working capital.
Houston, Tex.
Underwriter—
of
Office—427 Lovett Blvd.,
West
Clark &
Co., same city.
Bend Aluminum
Co., West Bend, Wis.
4,000 shares of class B
Price—
$11.39 per share. Proceeds—For new construction. Of¬
fice—92 Island Ave., West Bend, Wis.
Underwriter—
July
1
stock
to
(letter
of notification)
to members of sales force.
be offered
None.
•
West Coast
(7/20-21)
shares of common stock (par $10).
Price—To be supplied by amendment. Proceeds — For
construction program and to repay bank loans. Underwriter—Blyth & Co., Inc., San Francisco and New York.
Telephone Co.
June 27 filed 150,000
Fort Worth, Texas
200,000 shares of capital stock (no par).
Price—$5 per share.
Proceeds—Together with other
funds, to construct, furnish and equip hotel to be built
between Dallas and Fort Worth, Texas. Underwriter—
Hills Inn,
Western
Jan.
31
filed
Schwanz & Co., Inc., Aurora,
111.
Oil & Uranium Co.,
Western Nebraska
Inc.
(7/25-29)
April 4 (letter of notification) 200,000 shares of common
stock (par 10 cents). Price—$1.50 per share. Proceeds—
For exploration and development costs and working
capital. Office—924 Broadway, Denver, Colo. Under¬
writer—Israel & Co., New York.
^ Western Tool & Stamping Co. (7/28)
July 8 filed 75,000 shares of common stock (par $2).
Price—To be supplied by amendment.
Proceeds—For
working
capital.
writer—Blunt Ellis
Union
Western
June
30
filed
Office—Des
&
Moines,
Iowa.
Under¬
Simmons, Chicago, 111.
Co. (7/25)
shares of common stock
Telegraph
1,041,393
(par
$2.50) to be offered for subscription by stockholders of
record July 22 on the basis of one new share for each
five
shares held; rights to expire on Aug. 8,
1955.
Price—To be supplied by amendment.
Proceeds—For
construction program.
Underwriters — Kuhn, Loeb &
mon
of
invested
LaFortune,
Price—At par
stock.
Co.; Lehman
Properties, Ltd., Virginia City, Nev.
13 filed
Corp.
(letter of notification)
13
Warren
penses.
(
A
Underwriter—Mel-
U-Kan Uranium & Oil
for
series
com¬
Salt Lake City, Utah
June 2 (letter of notification) 5,000,000 shares of com¬
mon stock
(par one cent). Price—Five cents per share.
Proceeds—For mining costs.
Office—406 Judge Build¬
ing, Salt Lake City, Utah. Underwriter—Empire Secu¬
rities Corp., Las Vegas, Nev.
amounts
same
2,000,000 shares of
City, Utah
May 16 (letter of notification) 3,000,000 shares of com¬
mon stock
(par three cents). Price—10 cents per share.
Proceeds—For mining expenses.
Office—32 Exchange
Place, Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.
be
Co.,
Corp.
(par 2V2 cents). Price—10 cents per share.
For mining operations.
Office — 130 Social
Uranium
L.
Vactron
May
Two Jay Uranium Co., Salt Lake
offered
Underwriter—Lester
Co., Inc., etc.
City, Utah.
G. Flegal & Co., same city.
in
Texboard, Inc., Dallas, Texas
Box
456, Fallon,
Underwriter—H. P. Pratt & Co.,
Hall Avenue, Salt Lake
to
•
O.
,
National Bldg., Denver, Colo.
ter &
P.
—
(letter of notification)
April 1
mon
June
Underwriter—Floyd Kos-
Nev.
Uranium
Turner
(letter of notification) 5,960,000 shares of com¬
(par one cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office — 407 Denver
stock
mon
Address
Seattle, Wash.
shares.
June 20 (letter of
notification)
stock (par 10 cents).
stock
Churchill County,
Nev.
writer—None.
Triangle Mines, Inc., Salt Lake City, Utah
May 3 (letter of notification) 100,000 shares of common
stock.
Price—At par (50 cents per share).
Proceeds—
For mining operations. Office — 506 Judge Bldg., Salt
Lake City, Utah.
Underwriter — Lewellen-Bybee Co.,
Washington, D. C.
Ucon
Co., Denver, Colo.
Vegas,
city.
1
mining operations.
Price—At
Wabash Uranium
cumu¬
par
Proceeds—For working capital.
Office—
St., Chicago 26, 111.
Underwriter—None.
1737 Howard
vin
Super-Seal Piston
Uranium Co., Las Vegas, Nev.
(letter of notification) 3,000,000 shares of capital
par (10 cents per share).
Proceeds—
mining expenses.
Office—210 N. Third St., Las
For
.
lative preferred stock, second
per
Underwriter—None.
Southern
June 6
stock.
was
notification) 3,000,000 shares of common
stock.
Price—At par (10 cents per share).
Proceeds—
For mining expenses.
Office—915 Simms Bldg., Albu¬
querque, N. M. Underwriter—Hicks, Newton & Co., Inc.,
Denver, Colo.
ex¬
change for 80,000 shares of preferred stock.
Price—
$1.50 per share. Proceeds—To repay bank loans, for new
construction and for working capital.
Underwriters—
Hunter Securities Corp. and Gearhart & Otis
Inc., both
Utah
New Mexico
.
derwriters—Golden-Dersch
ton, N. J.
June 9 (letter of
June 29 (letter of
—
manufacture,
sinking fund subordinated
debentures, series A (convertible on or before June 30,
1962), due July 1, 1975. Price — To be supplied by
amendment.
Proceeds—To retire note, and for expan¬
sion
For equipment, drilling costs, and working
Business—To explore, develop and operate ura¬
nium mining properties. Address—P. O. Box
99, Stock¬
capital.
mon
Thorofare Markets, Inc.
June 22 filed $2,000,000 of
Corp., Stockton, N. J.
(letter of notification) 1,000,000 shares of com¬
(par one cent). Price—25 cents per share.
stock
Proceeds
Price—To be supplied by amend¬
seling stockholders.
ment.
July
Co.
share.
per
jc Thomas Industries, Inc., Fort Atkinson, Wis.
July 11 filed 140,000 shares of class A common stock (par
$1), of which 75,000 shares are to be offered for account
Thunderbird
filed
Price—$1
cent).,
one
and
mining activities. Office — Liberty Bank
Bldg., Oklahoma City, Okla. Underwriter—M. A. Collier
& Co., Inc., same city.
Southland
10
(par
oil
For
USeven
June 28
mon
stock
ber, Jackson & Curtis, and six other firms.
June
building products.
Under¬
Dallas, Tex., is Presi¬
insulation
C. F. McDougal of
Thursday, July 14, 1955
Brothers; Clark, Dodge & Co.; and Salo¬
all of New York City.
Bros. & Hutzler,
+ Wet Mountain Mining, Inc.
June 29 (letter of notification) 6,000,000 shares of com¬
mon stock
(par one cent).
Price—Five cents per share.
Proceeds
For mining activities.
Office
1051/2 East
Pikes
Peak, Colorado Springs, Colo.
Underwriter —
Hicks, Newton & Co., Inc., Denver, Colo.
—
^ White Castle Uranium Co., Boise, Ida.
June 24 (letter of notification) 22.500,000 shares of cap¬
ital
stock.
ceeds—For
Price—A
par
(one
cent
per
share).
Office—6515
Ave., Boise, Idaho.- Underwriter—None.
mining
operations.
Pro¬
Fairview
.Volume 182
Number 5446
...
The Commercial and Financial Chronicle
(205)
White
Horse Uranium, Inc., Salt Lake City, Utah
(letter of notification) 2,900,000 shares of capital
(par 2Vz cents). Price—10 cents per share. Pro¬
•
California
Electric
Power Co.
(8/23)
plans to issue
Florida
June 9
July
stock
230,000 shares of common stock (par $1). Proceeds—To
repay bank loans.
Underwriter—To be determined by
competitive bidding. Probable bidders: Carl M. Loeb,
ceeds—For
mining expenses. Office—1030 South Sixth
West Sc.,
Salt Lake City, Utah.
Underwriter—J. W,
Hicks & Co., Inc., Denver, Colo.
Wicker-Baldwin Uranium
Mining Co.
May 26 (letter of notification) 900,000 shares of
stock.
Price—At
For mining expenses.
S. D.
common
(25 cents per share). Proceeds—
Office—616 Sixth St., Rapid City,
par
Underwriter—Driscoll-Hanson, Inc.,
same
city.
Wyco Uranium, Inc., Salt Lake City, Utah
April 7^ (letter of notification) 2,900,000 shares of com¬
stock- (par
mon
Price
cent).
one
—
10 cents per share.
Proceeds—For mining expenses.
Office—429 Ness Bldg.,
Underwriter — Rocky Mountain
Salt Lake City, Utah.
Wyoming Uranium Corp., Salt Lake City, Utah
April 22 (letter of notification) 833,333 shares of com¬
stock
mon
Price—3V2
cent).
(par one
cents
per
share.
Proceeds—For mining expenses.
Office—522 Felt Bldg.,
Underwriter—James E. Reed &
Salt Lake
City, Utah.
Co., Salt Lake City, Utah; and Coombs & Co., of Wash¬
ington, D. C.
,
• York County Gas Co., York, Pa.
June 3 (letter of notification) 5,571 shares of common
stock (par $20) being offered for subscription by stock¬
holders of record June 21
for each
the basis of
on
one
new
share
14 shares held
(with an oversubscription privi¬
lege); rights to expire on July 18. Price—$45 per share.
Proceeds—To pay
ket
off bank loans. Office—127 West Mar¬
St., York, Pa.
Underwriter—None.
York Oil & Uranium Co.
June 3
Price—At par
•—For
10,000,000 shares of capi¬
(two cents per share). Proceeds
activities.
Address—P. O. Box
mining and oil
Newcastle, Wyo. Underwriter—Empire
Corp., Salt Lake City, Utah.
348,
Securities
April 20
approved
a
new
issue of not to
exceed $650,000,000 convertible debentures.
When is¬
sued, each stockholder would receive rights to purchase
the
debentures
sell
Rhoades & Co. and Bear,
Stearns & Co.. (jointly); Kid¬
der, Peabody & Co.; Lehman Brothers; Merrill Lynch,
Pierce, Fenner & Beane. Bids—Scheduled to be received
on Aug. 23.
Camden Trust
June
29
it
Bank
plans
to
offer
to
Co., Inc., Camden, N. J.
July 29 will vote on approving financ¬
ing and merger with Bank of Oaklyn National Bank.
on
April
19
of
sale
it
Uranium
announced
was
debenture
a
Proceeds—For
Mines
issue
company
plans
several
issue
million
and
dollars.
concentrating mill, mining equipment
underground development. Underwriter—James
Anthony Securities Corp., New York.
a
and for
Central Maine Power Co.
Dec. 31, W.
F. Wyman, President, stated that company
plans to issue and sell some additional common stock,
$10 (probably to stockholders) in the latter part of
Proceeds—For construction program. Underwriter
par
1955.
—May be determined by competitive bidding. Probable
bidders: The First Boston Corp. and Coffin &
Burr, Inc.
(jointly); Harriman Ripley & Co. Inc.; Blyth & Co., Inc.
and Kidder, Peabody & Co.
(jointly). Meeting—Stock¬
holders on May 11 voted to increase the authorized
stock
from
3,250,000
to
3,500,000 shares.
Of¬
fering—Probably in September.
Chesapeake & Ohio Ry.
Bids
are
in
Ford
(7/19)
expected to be received up to
noon
(EDT) on
company of $3,600,000
equipment trust certificates to mature annually
Aug. 1,
1956-1970 inclusive. Underwriter—To be determined
by
competitive bidding. Probable bidders: Halsey, Stuart &
Chicago, Milwaukee, St. Paul & Pacific
RR.
July 13 stockholders approved the creation of an issue
of
$60,00,000 5% income debentures, series A, to be
series
in
exchange
for
outstanding preferred stock,
a par for par basis; offer to
early in September.
A, about Aug. 1
commence
Motor
March 15 it
for-1
issue and sell
may
first
mortgage
by competitive
on
Co., Detroit, Mich.
reported that following a probable 10an offering of approximately
4,000,000*
split,
shares will be made to the
public. Price—Expected
$60 per share. Proceeds
To the Foidl
new
to
was
stock
be around
—
Foundation.
Offering—Probably
not
until
"latter
part
1955, if then."
•
Foremost Dairies, Inc.
July 11 the directors authorized
issue
an
of
$20,000,000
4V2% subordinated debentures to be first
offered in ex¬
change for outstanding $4.50 preferred stock and
4%%
cumulative preferred stock of
Foremost, along ^ with.
$4.50 preferred stock of
Philadelphia Dairy Products
Co., Inc., a subsidiary, this offer to be made
prior to
Sept. 1, 1955. Underwriters—Allen & Co. and
Salomon.
Bros. &
Hutzler, both of New York..
Genera] Minerals
Corp.
was reported that
company plans early regis¬
1,200,000 shares of its common stock. Under¬
-■
June 20 it
tration of
writers—Sanders & Newsom and
Rauscher, Pierce & Co.,
both of
Dallas, Tex.; and Laird & Co., Wilmington, Del.
Gulf States Utilities Co.
16 it was reported
May
company may issue and sell
mortgage bonds if market conditions
permit. Underwriter—To be determined
by competitive
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Lehman Brothers;
Merrill Lynch, Pierce, Fenner &
$10,000,000
July 19 for the purchase from the
offered
company
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Kidder, Peabody & Co. and Merrni Lynch, Pierce, Fen¬
ner & Beane
(jointly); Lehman Brothers and Blyth 8c
Co., Inc. (jointly);. Glore. Forgan & Co.; arid The First
Boston Corp.
Offering—Expected late in 1955 or early
Corp.
of
Corp.
announced
$10,000,000 and $12,000,000 of
bonds. Underwriters—To be
determined
of
Cavendish
was
between
its
standby.
Meeting
Underwriter—Price &
—Stockholders
Power
April 14 it
1956.
Co., Camden, N. J.
announced
was
stockholders the right to subscribe for 72,500 additional
shares of capital stock (par $5), with a 13-day
•
Telephone & Telegraph Co.
stockholders
and
Co. Inc.; Salomon Bros. & Hutzler.
Prospective Offerings
American
it
announced
company
common
(letter of notification)
tal stock.
7
45
first
Beane and
White, Weld & Co. (jointly); Salomon
Hutzler and Union Securities
Corp. (jointly);
&
Bros.
Kuhn,
Allyn & Co., Inc. (jointly); Lee
Higginson Corp. and Carl M. Loeb, Rhoades & Co.
(joint¬
ly); Stone & Webster Securities Corp.
Loeb & Co.
and
A.
C.
Hammermill Paper Co.
May 10 stockholders approved a proposal on
increasing
the debt authority to
$20,000,000. Underwriter—A. G.
Becker & Co.
(Inc.), Chicago, 111.
Housatonic Public Service
Corp. (9/5)
20 it was reported
company plans to issue and
sell 14,817 additional shares of
common stock
(par $15)
to common stockholders of record
Sept. 5 on the basis
proportion to his holdings of stock
(probably on the basis of $100 of debentures for each
eight share of stock held). Underwriter—None. Offer¬
ing—Probably in September or October.
Commonwealth Edison Co.
Jan. 24, Willis Gale, Chairman, announced it should be
Fall before the company undertakes its next
financing.
June
Proceeds—For
of
•
will
Arkansas
Power
&
Light Co.
May 27 it
was
struction.
Underwriter—To
(10/25)
reported company plans to issue and sell
about 80,000 shares of cumulative preferred stock (par
$100). Proceeds—To repay bank loans and for new con¬
be
determined
by competi¬
tive
&
the
Oct. 25.
.
Blackhawk
April 5 it
Fire
&
Casualty Insurance Co.
reported company plans to issue and sell
200,000 shares of common stock. Price—Expected at $5
per share.
Proceeds—To acquire Blackhawk Mutual In¬
surance
Co., Rockford, 111.
Underwriter — Arthur M.
was
construction, which, it is estimated,
$125,000,0000 in 1955. Underwriters—
The First Boston Corp.
were
Consolidated Edison Co. of New
York,
June
14
from
bidding. Probable bidders: Lehman Brothers; Blyth
Co., Inc. and Smith, Barney & Co. (jointly); Equitable
Securities Corp. and Union Securities Corp. (jointly);
White, Weld & Co. Bids—Expected to be received on
new
about
cost
For last equity
financing
and Glore, Forgan & Co.
it
announced
was
Inc.
expects
company
to
sell
$40,000,000 to $50,000,000 bonds
current
some time during
Proceeds—For construction program.
year.
Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co.
Inc.; Morgan
Stanley & Co.; The First Boston Corp.
Probable
Consolidated Uranium Mines, Inc.
July 23, 1954, stockholders authorized issuance and sale
of not to exceed
$6,000,000 convertible debenture bonds
in
connection with the
acquisition of Uranium Mines of
America, Inc. stock. Public offering of $2,000,000 bonds
expected early in 1955. Underwriter
Tellier & Co.,
Jersey City, N. J.
—
Krensky
&
Bliss
(E.
Co.,
Inc.,
W.)
Chicago,
111.
Co.
Continental Aviation
April 26 stockholders increased the authorized
common
stock
(par $1) from 1,000,000 shares to 1,500,000 shares.
Underwriter—Previous financing was handled by Allen
&
•
June
was
$6,000,000
of
duction of
April
(8/30)
other
first
the
bank
was
reported company plans sale in near
$2,000,000 convertible debentures. Underwriter
Alstyne, Noel & Co.. New York.
bonds.
mortgage
loans.
18,
not to
announced company plans to issue and sell
Proceeds—For_ re¬
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Blair & Co. Incorporated;
White, Weld &
Co.; Blyth & Co., Inc. Bids—Scheduled to be received on
&
Aug. 30.
an
thereof.
making
Goldman.
The
company
additional
any
Sachs
&
Co.
has
borrowings.
and
Lehman
New York."
present
plans
Underwriters—
no
Brothers, both of
Daitch Crystal
Dairies, Inc.
April 28 stockholders approved a proposal
the authorized common
stock
(par
$1)
increase
to
from
shares to 1,000,000 shares to
provide for future
and expansion. Underwriter—Hirsch &
500,000
financing
Co., New York.
Denver
June 30 it
30 years
of experience. The founders of the
direct
daily operations and
its
are
more
firm still
available
to
was
than
actively
discuss your
announced
share for each four shares held.
Price—$30 per
Proceeds—To increase capital and surplus. Meet¬
ing—Stockholders to vote July 28 on approving financ¬
new
share.
ing and 25% stock dividend.
about
A
2
stockholders
$60,000,000
of
approved
one
of
the
ers
reasons
"Printed
by Pandick"
guarantees the finest and most complete printing service available.
without
Doman
l.iiaihihtd 1923
ST., NEW YORK *
71 CLINTON
NY 1-3167
ST., NEWARK, N. J.
MArkct 3-4994
authorizing
was
made to
Previous
stockhold¬
underwriting.
Helicopters, Inc.
shares
to
3,000,000 shares in anticipation of
expansion of the company's activities.
Underwriter—
Previous financing handled
by Greene & Co., New York.
dndicfrpress, hie.
27 THAMES
proposal
debentures.
Feb. 17 Donald S. B.
Waters, President, announced stock¬
holders voted to increase authorized
capital stock from
1,000,000
WOrth 4-2900
a
convertible
offer of convertible debentures
EXPERIENCE is
»
Detroit Edison Co.
May
printing requirements at all times.
119
A: First National Bank of Arizona
July 1 stockholders of record June 29 were offered the
right to subscribe on or before July 29 for 160,000 shares
of capital stock
(par $10) at the rate of one new share
for each three shares held.
Price—$30
ceeds—To increase capital and
surplus.
/
per
each
25
shares
held;
rights
to
Price—$22
preferred stock, $50
par value and 1,000,000 shares shall
stock, $1 par value); also waiving of pre¬
emptive rights to such increased shares.
be
common
International
April 25 it
Bank,
Washington, D. C.
announced company,
was
ing
privately an
tures, will offer
issue
of
in addition to plac¬
$500,000
additional
convertible
convertible
tumn
of this year.
Washington, D. C.
Office
deben¬
debentures
shareholders, the latter probably sometime in
the
to-
Au¬
726 Jackson
Place, N. W..
Business—Industrial merchant bank¬
—
International Oil & Metals
May 23 it
share.
Pro¬
Corp., Seattle, Wash.
reported company may do
was
time in
some
the future.
of
Isthmus Sulphur Co. (Texas)
it was reported early registration
March 30
of
undertermined number of
an
writers—L.
&
financing
some
William D. Bost
Whitcomb
Co., New York, is Chairman of the Board.
D.
Sherman
&
common
is planned
shares.
Under¬
Co., New York, and Garrett
Co., Dallas, Tex.; and others.
ic Kaiser Aluminum &
Chemical Corp.
July 11 it was reported that company is understood tobe contemplating the sale to the public of
700,000 shares
of sinking fund preferred stock this Fall and
private
debt financing of about $40,000,000.
Stockholders will
vote
Aug. 12
preferred
on
stock
ceeds—For
Denver, Colo.
to its stockholders the
one
Pandick Press, Inc. is backed by
Bank,
that company plans to offer
right to subscribe for 50,000 addi¬
tional shares of capital stock
(par $10) on the basis of
EXPERIENCE
The reputation of
National
for
26.
Hupp Corp.
May 13 stockholders approved a proposal
increasing tha»
authorized capital stock from
3,000,000 to 4,200,000 shares
(200,000 of such increased shares shall be (new) seriaL
&
Inc.
stockholders
approved creation of
additional $25,000,000 of debentures or
indebtedness maturing later than one year after
date
for
preferred
exceed
Sept.
per share.
Proceeds—
For construction program.
Underwriter—None. Unsub¬
scribed shares to be sold to
highest bidder.
it
Continental Can Co.,
California Electric Power Co.
share
new
on
ers.
Engineering Co.
future of
—Van
Co., New York.
July 7 it
13
&
one
expire
approving
from
an
increase in the authorized
700,000 to
expansion
program
1,500,000
and
shares.
working
Pro¬
capital.
Underwriters—The
Dean
Witter
&
First Boston Corp., New York; and
Co., San Francisco, Calif.
.
Keystone Wholesale
Jan. 27 it
date
to
stated
was
offer
Hardware
Co.,
•
Atlanta, Qa«
that the company plans at a later
additional
shares
for
sale
nationally. An,
was recently
made to residents
of Georgia only at $3 per share.
Office—517 Stephens St.. S.W., Atlanta. Ga.
offering of 16,666 shares of
common
stock
Lithium
Developments, Inc., Cleveland, Ohio
announced that company plans soon to
statement with the SEC covering a
proposed issue of 600,000 shares of common stock. Pro¬
ceeds—For general corporate purposes.
UnderwriterGeorge A. Searight, New York, will head group.
June
file
a
9
it
was
registration
Long Island Lighting Co.
April 23 it was announced company
issue
due
of
1985.
$15,000,000
plans
to
sell
aa
series H,
Proceeds—For construction program.
Under¬
first
mortgage
bonds,
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; The First Bos¬
ton
Corp. and Blyth & Co., Inc. (jointly); W. C. Langley
Co.; Smith, Barney & Co.; Baxter, Williams & Co.
Offering—Expected late in 1955.
&
Continued
on
page
46
46
The Commercial and Financial Chronicle...
(206)
Continued from page
ders:
J
Lucky Stores, Inc.
April 20 stockholders approved a proposal to increase
the authorized common stock (par $1.25) from 1,000,000
shares to
standing).
2,000,000 shares (there are 804,063 shares out¬
It was reported previously that the company
proposed to raise approximately $1,500,000 through the
sale of 150,000 shares. However, no immediate financing
is
Underwriter—Probably Blair & Co. Incor¬
planned.
Feb. 14, E.
(jointly).
Registration—Planned for Aug. 17. Bids—
Expected to be received up to 11 a.m. (EDT) on Sept. 20.
oivbonds.
Power Co.
Ohio
June 20 it
Spencer Miller, President, said company has
given up the idea of refunding the $17,000,000 5Y8%
mortgage and collateral trust
bonds due 1978.
Probable bidders for new bonds may include Halsey,
first
Co.; W. C. Langley
Coffin & Burr, Inc.; The First Boston Corp.;
Merrill Lynch, Pierce, Fenner & Beane; Blyth & Co.,
Inc.; Glore, Forgan & Co.
Stuart & Co. Inc.; Kidder, Peabody &
Co.;
determined
Service
Water
Ohio
28
it
by
competitive
Majestic Auto Club, Inc.
Aug. 25 it was announced company plans to offer 500,shares
(par five cents) to the motorist and general
public shortly after completion of the current offering
of 100,000 shares to service station owners and operator!.
Office—Room 717, 141 Broadway, New York 6, N. Y.
States Telephone &
Telegraph Co.
May 21 it was announced that company plans to issue
and sell to its stockholders additional common stock
Mountain
ratio to be determined later.
about 86.7%
of the presently outstanding common stock. Underwriter
next Fall, the amount and
American Telephone & Telegraph Co. owns
—None.
$1,000,000 of first mortgage bonds and $300,000 of
additional common stock (the latter to stockholders) in
near
burse the
reim¬
company's treasury for construction expendi¬
Power & Light Co. (9/27)
July 6 it was reported company plans to issue and sell
$10,000,000 of first mortgage bonds due 1985. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders—Halsey, Stuart & Co. Inc.; Union Securi¬
ties Corp. and Kidder, Peabody & Co., (jointly); Leh¬
it Pacific
Brothers, Bear, Stearns & Co. and Salomon Bros.
man
&
Hutzler
(jointly); Blyth & Co., Inc. and White, Weld
(jointly).
Bids—Tentatively planned to be re¬
ceived up to noon (EDT) on Sept. 27.
Registration—
Expected on or about Aug. 24.
Co.
the
Proceeds—For expansion program. Under¬
writer—Merrill Lynch, Pierce, Fenner & Beane, New
York, handled preferred stock financing in 1942.
$20,000,000.
Haven Clock & Watch Co.
New
June 7 it
was
announced that in connection with its pro¬
posed plan of recapitalization to be voted upon July 26,
the company plans to raise not less than $300,000 of new
Underwriter—Probably
capital.
Reynolds &
Co., New
York.
New
Feb.
to
4
Public
Orleans
it
announced
was
issue
first
some
Inc.
Service
that company plans this year
bonds due
mortgage
1985.
Under¬
writer—To be determined by competitive bidding. Prob¬
it Pacific Power & Light Co. (10/5)
July 5 it was reported company plans to issue, and.sell
30,000 shares of cumulative preferred stock /<pa£$lQ0.).v
Underwriter—Expected to be local dealers. Registration
—Expected
it
June 21
Halsey, Stuart & Co. Inc.; White, Weld &
& Co. Incorporated; The First Boston Corp.;
Securities Corp. and Union Securities Corp.
Kuhn, Loeb & Co. and A. C. Allyn & Co. Inc.
Kidder, Peabody & Co. and Stone & Webster
Securities Corp. (jointly); and Lehman Brothers.
Underwriter—None.
tion.
it New York State Electric & Gas Corp. (10/19)
July 8 it was announced company plans to issue and
sell $25,000,000 of first mortgage bonds due 1985. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Kidder,
Probable
Peabody & Co.; Hariman Ripley & Co. Inc.; The First
Boston Corp. and Glore, Forgan & Co.
(jointly); Blyth
& Co., Inc. and Smith,
Barney & Co. (jointly); Bids—
Expected to be received on Oct. 19.
New York
Jan.
Telephone Co.
Keith S. McHugh, President, announced that
the company will have to raise more than
$100,000,000
of new capital money to aid in
carrying out its expan¬
17,
sion
and improvement program which will cost
ap¬
proximately $200,000,000. Underwriter—For and bonds,
to
be determined by
competitive bidding.
Probable
bidders: Morgan Stanley &
Co.; Halsey, Stuart & Co. Inc.
Northern Illinois Gas Co. N
June 14, Marvin Chandler,
President, announced that the
company plans to spend $60,000,000 on new construction
through 1958, and that about $25,000,000 would be raised
through the sale of bonds in the period. Underwriters—
The
First
Boston
Corp., Halsey, Stuart & Co. Inc. and
Glore, Forgan & Co.
Northern
March
29
ments
for
it
States Power Co.
was
1955
announced
will
(Minn.)
that
approximate
capital require¬
$31,000,000. Present
plans contemplate these funds will be obtained tem¬
porarily from short-term bank loans to be repaid from
proceeds of the sale of additional bonds late in 1955 or
early 1956. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc. and The First Boston Corp. (joint¬
ly); Merrill Lynch, Pierce, Fenner & Beane,
Kidder,
Peabody & Co. and White, Weld & Co.
(jointly); Equit¬
able Securities Corp. and Union Securities
Corp. (joint¬
ly); Smith, Barney & Co.; Lehman Brothers and Riter
& Co. (jointly);
Glore, Forgan & Co.
Northwest
Nitro-Chemicals, Ltd., Alberta, Can.
March 4 company plans to issue
and sell publicly deben¬
tures and common stock to finance
its proposed chemical
project.
Underwriter—Eastman, Dillon
& Co., New York.
Nuclear-Electronics Corp.
and sell
$2,500,000 of debentures. Underwriters—Van
Alstyne, Noel & Co. and Barrett Herrick & Co., Inc.,
both of New York.
merger in
Ohio Power Co.
June 20 it
Meeting
—
Stockholders to vote
on
August, 1955.
(9/20)
reported company plans to issue and sell
60,000 shares of cumulative preferred stock
Proceeds—For
be
determined
(par $100).
construction
program.
by competitive
it
21
Underwriter—To
bidding.
was
announced
White, Weld & Co., Lehman Brothers and Union Secu¬
rities Corp.
(jointly).
Registration—Planned for the
latter part of July. Bids—Expected to be opened Aug. 16.
Probable
bid¬
This
would
not
exceed
Receptor Co., Inc.
and 150,000 shares for selling stockholders.
pany
writer—Bache &
,
Under¬
Co., New York.
Reading Co.
June 7 stockholders approved
proposal increasing the
a
authorized
indebtedness of the company to S125,000,000.
debt at Dec. 31, 1954 totaled
$84,077,350. If, in
Funded
the future,
the directors should deem it in the best in¬
the
of
terests
company
determine the
amount
the
Stuart
•
of
& Co.
issue
to
the
of
bonds.
bonds, the
issue
and
Probable
board
will
terms
the
and
bidders:
Halsey,
Inc.; Morgan Stanley & Co.
Louis-San
St.
Francisco Ry (8/22)
May 10 stockholders approved an aaoitional issue of
up to $25,000,000 of first mortgage bonds, of which it
is planned to sell initially $19,500,000 principal amount
to mature in 40-years. Proceeds — For property addi¬
tions
and
improvements.
Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; The First Boston Corp.; Union
Securities
& Co. Inc.
San
E,
D.
Corp.; Blyth & Co., Inc. and Harriman Ripley
(jointly).
Diego Gas & Electric Co.
Sherwin,
President, recently reported that the
will need a minimum of $11,000,000 new capital
help finance its current $20,000,000 construction pro¬
('.company
The financing will probably take the
form of
a
issue
or
preferred stock. Underwriters—(1) For
preferred stock, Blyth & Co., Inc., San Francisco, Calif.
(2) For bonds, to be determined by competitive bidding.
bidders: Halsey, Stuart & Co. Inc.; Salomon
Bros. & Hutzler; Blyth & Co., Inc.; Union Securities
Corp. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Lehman Brothers; The First Boston Corp.;
White, Weld & Co. and Shields & Co. (jointly). Offer¬
Probable
Southern California Gas Co.
Feb. 28 it
emption
Inc.
reported company plans to issue and sell
was
of first mortgage bonds.
Application
with California P. U. Commission for
$40,000,000
bjeen filed
from
Southern
Dec. 30 it
sell
to
stock
Co.
(11/t)
announced company plans to i3sue and
public 500,000 additional shares of common
was
the
(par $5). Proceeds—To repay bank loans and f<
investment in additional stock of
subsidiary companies.
be determined by competmve bid¬
ding. Probable bidders: The First Boston Corp., Laden
burg. Thalman & Co., Carl M. Loeb, Rhoades & Co. and
Underwriter—To
Wertheim
&
Co.
(jointly);
Pennsylvania
Electric
Co.
reported company proposes Issuance and
sale of $7,500,000 of preferred stock later this year. Pro¬
was
ceeds—For
construction
program.
Underwriter—To be
by competitive bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney &
Co.; Harriman Ripley &
determined
Co. Inc.
struction
ranged privately
Boston
Previous
proceeds for its
con¬
bond
financing was ar¬
through Drexel & Co. and The First
program.
Corp.
Peoples National Bank of Washington, Seattle,
Southland
ApriM8 it
OOO
30
it
&
& Co.
Frozen
Foods,
Inc.
reported company plans to offer $600,
debentures and 60,000 shares of common
was
/joI" 6%
Office—160
Broadway, New York City. Under¬
King, Libaire, Stout & Co., New Yor
Offering—Expected in July.
writer—Eisele &
Sterling
Precision
Instrument Corp.
June 6 the stockholders voted to approve an authorized
issue of 500,000 shares of first preferred stock (par $10),
of which 300,000 shares (to be convertible into common)
are to be publicly offered.
Proceeds—For working capitalrfOffice—Buffalo, N. Y.
Wash.
June
Witter
Not expected until Oct. 12.
stock.
Pennsylvania Power & Light Co.
April 19, Charles E. Oakes, President, announced that
company plans this year to issue and sell $15,000,000 of
Blyth
Co., Inc., Bear.
(jointly); Unio
Securities Corp. and Equitable Securities Corp. (jointly)
Lehman Brothers; Morgan Stanley & Co.; Kidder, Pea
body & Co., and Merrill Lynch, Pierce, Fenner & Bean
Bids—Tentatively scheduled for Nov. 9. Keglsiratlo
Stearns & Co. and Dean
Feb. 21 it
has
ex¬
competitive bidding.
Bids received on
last sale of bonds were from Halsey, Stuart & Co. Inc.;
Blyth & Co., Inc.; White, Weld & Co. and Union Secu¬
rities Corp. (jointly); Lehman Brothers.
%
Pennsylvania Electric Co.
was reported company plans to issue and sell
later this year $9,300,000 of first mortgage bonds. Pro¬
ceeds—To repay bank loans and for new construction.
Underwriter—To be determined by competitive bidding,
probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Kuhn, Loeb & Co.; Kidder, Peabody &
Co.; Equitable Securities Corp.; Harriman Ripley & Co.,
Feb. 15 it
Texas Gas Transmission Co.
was
announced
Bank
to issue 25,000
stock dividend, and
plans
shares of capital stock (par $20) as a
a like number of shares will be offered for
subscription
March 15 it
was reported company plans to sell addi¬
tional first mortgage bonds later to finance cost of new
construction,
which
is
estimated
at
about
$17,500,000.
by stockholders.
Underwriter—Dillon, Read & Co. Inc., New Y^crk.
it Public Service Electric & Gas Co. (10/4)
July 11 it was reported company plans to issue and sell.
$35,000,000 of debentures!
Underwriter—To be deter¬
June
mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co. and Lehman Broth¬
(jointly), Morgan Stanley & Co. and Drexel & Co.
(jointly); The First Boston Corp. Bids—Expected to be
ers
up
to 11
a.m.
(EST)
on
Oct. 4.
1
-
it Public Service Electric & Gas Co.
July 11 it was stated that company may issue and sell
late in September 250,000 shares of cumulative preferred
stock (par $100).
Underwriters—May be Morgan Stan¬
ley & Co., Drexel & Co. and Glore, Forgan & Co.
Puget Sound Power & Light Co.
April 5, Frank McLaughlin, President, said that "it will
be
was
issue.
ing—Expected in September.
Telegraph Co. (8/16)
company plans to issue and
sell $67,000,000 of 36-year debentures due 1991. Proceeds
—For construction program.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
June
received
June 28, it was announced that it is
planned, following
proposed merger into company of
Olympic Radio &
Television, Inc., and Victoreen Instrument Co., to issue
debenture
was reported that a public offering is soon
expected of about 250,000 shares of common stock, of
which 100,000 shares will be sold for account of com¬
Pacific Telephone &
first mortgage bonds and use the
new
Radio
bond
offer to its
preferred and common stockholders later this year 1,339,196 additional shares of common stock on a l-for-6
basis. (American Telephone & Telegraph Co., the parent,
owns
a
majority of the common and preferred stocks
presently outstanding.) Price—At par ($100 per share).
Proceeds—To repay bank loans and for new construc¬
able bidders:
Co.; Blair
Equitable
(jointly);
(jointly);
Halsey^ Stuart & Co. Inc., is re¬
bid approximately $25,000,000
,,Feb/28 it
gram.
Telegraph Co.
announced company plans to
was
&
and
writer—Probably Smith, Barney & Co., New York. 7,
Aug. 24.
on
Pacific Telephone &
Corp
group to
conditions
tures.
&
Murphy (G. C.) Co., McKeesport, Pa.
April 12 stockholders approved a proposal to increase
authorized limit of indebtedness from $3,000,000 to
Proceeds—To retire bank loans and
future.
Boston
First
$50,000,000 and would be issued at the discretion of the
directors any time within the next 12 months.
Under¬
Co.
sell
000
convertible
a
bid¬
reported company plans to issue and
was
a
The
April 9 stockholders approved the possible issuance of
Probable bidders: Halsey, Stuart & Co. Inc.;
Harriman
Ripley & Co. Inc. and Stone & Webster
Securities Corp.
(jointly); Kuhn, Loeb & Co.; Blyth
& Co., Inc.; Union Securities Corp. and Salomon Bros
& Hutzler (jointly); The First Boston Corp.
Registra¬
tion—Planned for Aug. 17.
Bids—Expected to be re¬
ceived up to 11 a.m. (EDT, on Sept. 20.
March
Corp..
Pure Oil Co.
(9/20)
$22,000,000 of first mortgage bonds due 1985. Proceeds—
To
retire
bank
loans and for construction program.
be
Underwriters—Probably Stone
years.
Securities
Smith, Barney & Co.
reported company plans to issue and sell
was
five
next
ported to head
ding.
RR.
not
&
Webster
Underwriter—To
porated, New York.
Maine Central
Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb
Co.; Harriman Ripley & Co., Inc. and Stone & Web¬
ster Securities Corp. (jointly); The First Boston Corp.;
Union Securities Corp. and Salomon Bros. & Hutzler
the
&
4.5
Thursday, July 14, 1955
necessary
purposes
in 1955 to obtain funds for construction
outside sources—at least to the extent
from
of several million dollars."
a
The company has scheduled
large-scale expansion program, involving $75,000,000
keep abreast of estimated load growth over
in order to
•
Texas National Bank, Houston, Texas
30 it was announced Bank is offering
holders of
record
June
its
stock¬
15 the
right to subscribe on or
before July 20 for 50,000 additional shares of capital
stock (par $20) on the basis of one new share for each
five shares held.
crease
Price—$40 per share.
capital and surplus.
Proceeds-i-To in¬
Unexcelled Chemical Corp.
May 25 stockholders approved creation cf 100.000 shares
of 5% non-voting preferred stock (par $25)
and in¬
creased authorized
common
stock from
500,000 shares t
1,000,000 shares.
1-
i
it Union
Bank & Trust Co., Los Angeles, Calif.
July 9 it was announced stockholders of record July 2
1955, are to be given the right to subscribe on or befor
Aug. 15 for 95,000 additional shares of capital stock
(par $10) on the basis of one new share for each fiv
shares held. Price—$33 per share. Proceeds—For capita
and
surplus.
geles, Calif.
Underwriter—Blyth & Co., Inc., Los An¬
Volume 182
•
it
24
Co.
Electric
Union
Jan.
Number 5446
...
of
The Commercial and Financial Chronicle
Missouri
Utah Power &
March
reported company expects to sell about
was
(207)
28
it
Light Co. (9/13)
reported company plans to issue and
was
$30,OUU,ODO 30-year first mortgage bonds late in 1955.
Proceeds—To repay bank loans and for new construc¬
tion.
Underwriter — To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
sell $15,000,000
Blyth & Co., Inc. and Union Securities Corp. (jointly);
The First Boston Corp.; Lehman Brothers and Bear,
Stearns & Co. (joint.lv); White. Weld & Co. and Shield#
& Co.
(jointly).
Bids — Expected to be received in
Westpan Hydrocarbon Co.
March 2 it
was announced Sinclair Oil
Corp. has
with the SEC to divest itself of its
investment of
shares of Westpan stock (52.8%).
Union Securities
October
»
'
November
or
United
ceeds
—
of first mortgage bonds due 1985. Pro¬
bank loans and for construction pro¬
To repay
Underwriter—To be determined by competitivi
Probable bidders: Halsey, Stuart & Co. Inc.;
Corp. and Smith, Barney & Co. (joint¬
ly); Kidder, Peabody & Co.; Salomon Bros. & Hutzler;
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); The First Boston Corp.; Lehman Brothers and
Bear, Stearns & Co. (jointly). Bids — To be received
Utah
177,500 shares of
preferred
stock
(233,500
outstanding), and for working capital. Under¬
writer—Harriman Ripley & Co., Inc., New York.
Feb.
N.
24,
Corp.
C.
President, announced that
$35,000,000 to $40,000,000 in
the first half of 1955 through the sale of additional com¬
stock
mon
a
stockholders.
to
of
program
subsidiary.
Proceeds—For
Warren
construction
and of United Gas Pipe Line
company
Underwriter—None.
United Gas Corp.
Feb. 24. N. C. McGowen,
President, stated that com¬
doing some debt financing, with This
year's total financing program reaching about $50,000,000 (including about $35,000,000 to $40,000,000 of ccjmmight
be
stock).
mon
petitive
Underwriter—To
bidding.
Probable
be
determined
by
Inc.;
The
First
bidders:
and sell
units
in
notes
and
placed privately.
New York.
Comptroller turned down
nation-wide group's bid,
what
to
inter¬
an
first projected. Feel¬
terms of most other debt issues of
without
recent date, dealers reported a fair
expenses
inquiry developing in advance of
able
attract
to
single bid
on
a
ing.
the
market
this
age
though basically the situation had
not
changed materially.
influences appeared as
blame
as
The
secondary
with
new
had
new
almost
vacations
walk
a
and
offerings. The corporate field
only one really substantial
bond
issue
to
contend
Illinois Bell Telephone's
000
of
of
It
40-year
$30,000,-
paper.
remained
State's
with,
for
New
York
Submitted
the
for
Thruway Au¬
thority's $125 million of bonds, to
put the damper on things at least
temporarily. Having been fore¬
warned,
however,
observers,
by municipal
market
the effect of
this development had been pretty
shorter
with
the
changed
was
for
for
a
same'coupon
rate,
Holding Their Own
handful of recent
latter had
same
coupon,
left
Doubtless this proved a bit of a
stumbling block for the moment,
probably influencing some insti¬
tutional buyers to sit back and see
how the reoffering would go at a
price of 101.75 for a 3.17% yield.
ital
market
tial,
and
the
Thruway
swelled
was
rather
are
that
the
substan¬
of 20-year
priced
right
been
issue
could
have
er
total
materially,
it
argued.
debentures, which has
simmering on the back burn¬
several
for
shaped
up
offering
weeks, has been
and readied for public
today.
Hard Put to It!
"There
over
have
tiie
the
last
been
few
curious
some
weeks
of
dozen
selection
a
such
that
curious
prompt
about
the
me
Preferred
in
over
survey
re¬
offer¬
Shields
and
may
few
to
Offering Made by El
Morocco Enterprises
public
issue of $6,000,000
of 8%
10-year sinking fund de¬
benture bonds due July
1, 1967,
in
multiples of $500, at 100%.
Each purchaser of the debenture
bonds will have the right to pur¬
an
of
stock
common
the
com¬
10 cents per share, with
1,950,000 shares of com¬
at
total of
mon
subject of businessmen
here as consultants to
and
in
funds
deliver
company
&
Co.
be
from
applied
structure
will
also include
a
want
influence
know
to
the
how
El Morocco Enterprises, Inc. was
incorporated Oct. 22, 1954.
Thus
far, the company's only business
to
acquire from Richard
an agreement to pur¬
M. Edelman
of the
chase all
indebtedness
Business
Advisory
tail
Council has had/ It will be inter¬
The
Financial Chronicle)
BOSTON,
Mass. —Banks
to
Worsham is
with
Government
over
on
casino.
economic matters
the years
has had in framing
controversial policies adopted
by
—Representative Emanuel Celler.
Emanuel Ceiier
Government."
for 1,200
An
people, and a
Olympic-size swim¬
ming pool will be built in the very
center of the project.
The
-
The gentleman must be in dire need of
ammunition!
lounge seating 400; a theatre
a spacious night club
room
all
proceeds
the
from
securities
the
being
sale
of
offered
will be held by the Bank of Amer¬
ica National Trust & Savings As¬
political
sociation,
count
and
necessary
trustee,
in
the
in
a
event
amounts
are
with Lee
now
S.
Higgin¬
Corporation, 50 Federal St.
son
dtvidend notices
capital stock and
of
Las
AMERicAN-^taitdard
PREFERRED
COMMON
A
quarterly dividend of $1.75
the
property" site
hotel
new
is
to
be
built; to lease to El Morocco Ho¬
tel, Inc., a hotel it plans to erect
Preferred
the
on
stockholders
business
contract
of
the property site to
to
the
sell
of
record
per
has
at
August 26,
on
share
been
1,
de¬
1955 to
the
close
of
1955.
A quarterly dividend of 35 cents per
share
the
on
Common
Stock
has been
declared,' payable September 24,
to
of
stockholders
of business
record
the
at
September 6,
on
1955
close
1955.
AMERICAN RADIATOR & STANDARD
a portion
of the site, with an
option to purchase the hotel; and
to
Stock
clared, payable September
Vegas Hotel,
the
of
owner
which
DIVIDEND
DIVIDEND
SANITARY CORPORATION
Frank J. Berberich
remainder
Secretary
Edelman
Mr.
man.
Edel¬
Mr.
is
President,
director
aind promoter
Enterprises, Inc.
of
El
Joins
Watling, Lerchen
Common Stock
(Special to The Financial Chronicle)
Pellerite
is
Lerchen
&
members
Detroit
Co.,
Stock
New
York
Dividend
J.
Watling,
Building,
Ford
the
of
James
—
with
now
and
The Board of Directors of Central
and South West
meeting
held
declared
Exchanges.
dend
per
MOTEL FOR SALE
Corporation at its
July-12, 1955,
a
on
regular quarterly divi¬
thirty-three cents (33c)
of
share
Common
the
on
Stock.
Corporation^
This
dividend is
olders August 31, 1955, to 1955.
Eayable of record July 29, stock-
$20,000 down. Foothills of Cats-
LEROY J. SCHEUERMAN,
kills and Poconos, beautiful 27
unit modern
on
18
Near
grossing
acres,
intersection
$20,000.
two
opposite
Write lawyer
Secretary
round motel
year
owner.
Central and South West
Corporation
main
Wilmington, Delaware
restaurant.
Box C-67,
Commercial & Financial Chron¬
icle, 25 Park Place, New York
.IOWA SOUTHERN
7, N. Y.
UTILITIES COMPANY
con¬
seating 750;
esting to know just how much
weight the advice they have giv£n
also
is
With Lee Higginson
(Special
~r
Inc.,
on
I S U Co.
accommodating 2,500
persons; a ballroom with accommo¬
dations for 1,000 persons; a cock¬
much
It
be placed privately.
vention hall
"I
& Co. Inc.; White,
(jointly).
any
concrete,
fully
air-conditioned,
1,000
room
resort
hotel.
The
Government.
Probable bidders; Hal¬
satisfaction
full
the
to
securities it may have issued.
highways,
stock to be sold.
the
financing
by the company
toward the purchase of a 31-acre
plot in Las Vegas, Nevada, where
it proposes to build a reinforced
be
turned
El Morocco Enterprises, Inc., 39
Broadway, New York, is offering
will
and
deductions,
DETROIT,. Mich.
to the
not yet
construction
ex¬
with
B. A. C.
and all
incident to the registra¬
Morocco
a
amount
will be obligated to accept the re¬
a
small.
are
stocks, with
ceptions, likewise have been doing
very well, helped of course, by the
robust equity market.
a
about the
serving
a
three such
only
Proceeds
that
own
of well
issues,
the differences
pany
regard to business advice to Gov¬
ernment
Co.
new
ruling below their orig¬
are
chase
developments
ap¬
series of its
new
new
A. C. Allyn
offering will be assumed
by the company.
Each purchaser
inal offering prices and even here
Consolidated Cigar Corp.'s issue
unless
this
of
con¬
Underwriter—May be deter¬
on
Out
a
Consolidated Cigar Ready
inventories in that end of the cap¬
offerings, it
bulk
has been holding its
the open market.
ings
indicated spread of some $10.80
the
paper
bond from the top bid.
pointed out that
that
pears
much discounted.
The
&
Dec. 31, 1955, the pro¬
be
returned
by the
the
purchasers in full
any
a
for
pay
by competitive bidding.
Weld
has been
veals
spread of about
But the lowest bid,
the
is
Although a number of sponsor¬
ing groups have found it the bet¬
ter part of wisdom to wind up
syndicate agreements -covering a
indicated
for
100.08
an
yield of 4.25%
something of an attraction.
bond.
an
a
the
indicate
the
in
situa¬
fering brought out a total of four
bids by banking groups, the win¬
ning one being 101.16 for a 3%%
coupon rate.
The runners-up bid
100.95
Originally planned as a $17,500,000 offering, the amount was cut
to $15,000,000 with a 414% coupon
rate.
Slated for offering at 100,
aver¬
Illinois Bell Telephone Co.'s of¬
$2.10
rejection of the single bid
a
Illinois Bell's Financing
had
what
dearth
a
un¬
was
maturity loan in 1953,
*
market
to
the
consenus
tion in the tax-exempt market.
.
slowed
that
keeping
Seasonal
much to
thing else.
any
subsequent offer¬
der that made for
week
a
bid, about eight points
group
bit beclouded in
than
more
>
But
issue
Proceeds—To
Stuart & Co. Inc.;
sey,
to
of
aggregate
an
tion and
opening of the books.
was
new
probably to refund-an issue of $560,000 4%% first
mined
by
bank
and
contemplates the
company
this year
will
mediate maturity, considering the
be
new
later
mortgage bonds, in
and
ceeds
ing the total sought and shorten¬
ing up on the maturities, he might
the
sale
determined.
ceived
ing in market circles is that if the
Comptroller should consider halv¬
a
first
announced
was
and
possible that issue
liberal sinking fund,
a
amounts
it
29
issuance
expected to be
the issue
were
June
Underwriter—Eastman, Dillon & Co..
Carrying
and
loans
^ York County Gas Co., York, Pa.
mortgage bonds due 1978.
are
bank
(jointly); The First
Bids—Tentatively scheduled to be received
Oct. 18 at company's office, 441 Stuart St., Boston
16,
Mass.
\
•
'
•••
Ltd.
Bonds
of
on
Offering—Expected in July.
a
citing the
stock.
payment
Boston Corp.
on
change in market conditions since
Things
the SEC early in
$8,500,000 first mortgage bonds, series D, due 1985.
porated and Baxter, Williams & Co.
was reported company now plans to issue
publicly about $20,000,000 of securities, probably
of
(10/18)
registration statement
September with respect to sale
a
Co., Inc. (jointly); Coffin
Burr, Inc.; Kidder, Peabody & Co., Blyth & Co., Inc.
and White, Weld & Co.
(jointly); Blair & Co. Incor¬
April 25 it
Boston
The
Co.,
to file
proposes
&
Merrill Lynch,
stockholders
among
Bros. & Hutzler and Stroud &
Co
Co., Cambridge,
announced
Westcoast Transmission
com¬
Halsey, Stuart &
Corp.; Morgan Stanley! &
Co.; White, Weld & Co. and Equitable Securities Corp
(jointly); Harriman Ripley & Co. Inc. and Goldman,
Sachs & Co. (jointly).
"■/,./
/•'
Co.
Brothers
was
White,
the
included
Underwriter—To be determined by
compe¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Merrill Lynch, Pierce, Fenner & Beane, Salomon
vote
!
pany
it
be
may
struction.
Mass.
July 19 will
upon a
plan to refinance the outstanding 40,665
shares of $2.50 cumulative preferred stock
(par $50).
It is proposed to issue not
more
than $2,500,000 of
notes, bonds or debentures which may be in whole or
in part convertible into common stock at not less than
$50 per share. Proceeds—To retire preferred stock, to
pay off a $225,000 loan and for working capital.
June 21
Co.,
York,
titive
Pierce, Fenner & Beane (jointly); Blyth & Co., Inc.; Th«
First Boston Corp. Bids—To be received on Sept. 13.
raise
to
& Co. and
Kidder, Peabody
(jointly);
McGowen,
plans
company
Proceeds—For
stock.
thers; Union Securities Corp. and bmitn, Barney &
Gas
corporation
Light Co.
common
New
with
Proceeds — For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Lehman Bro¬
shares
United
was
Co.,
Worcester County Electric Co.
The
(9/13)
reported company plans public sale of
March 28 it
cumulative
&
bidders.
of
Power &
deem
5%
Weld
13.
Sept.
Aircraft Corp.
present
Securities Corp., New York, underwrote recent sale
ol
Sinclair's holdings of Colorado Interstate Gas Co.
DHicting.
April 26 stockholders approved a new issue of 500,000
shares of preference stock (par $10U). Proceeds—To re¬
agreed
384,380
Underwriter—Union
gram.
1955.
47
trust
ac¬
that
the
not
re¬
FOR SALE
Jaguar
—
4-Door
red
1952
—
Sedan,
leather,
Mark
silver
15,000
Immaculate condition.
VII,
DIVIDEND NOTICE
The Board of Directors has declared
with
35% cents per share on
to
seen
Private
Call
be
owner
DE
44 cents per
Must
appreciated.
30
asking $1,800.
7-5996
between
P.
M.
cents
share
per
stockholders
1955.
July 8, 1955
share
Stock
Common
all dividends payable
to
7-8
its
4%% Preferred Stock ($30 par)
miles.
on
$1.76 Conv. Preferred Stock
be
the
following regular quarterly dividends:
on
its
($30 par)
its
($15 par)
September 1,1955,
of record
August
15,
EDWARD L. SHUTTS,
*
President.
Chronicle... Thursday, July 14, 1955
The Commercial and Financial
48
(208)
housing subsidies, although the
BUSINESS BUZZ
daily
islation,
ADVERTISING DEPT.
And
Behind-the-Scene Interpretation*
from the Nation'*
Capital
.' ' WASHINGTON, D. C.—When
it
to conjuring
comes
despite the
dribble
of funds at first, will take hold
inexorably, so eventually. Gov¬
ernment policy is going, long-
in
it
Eisenhower
writes
And
shown
as
r
Administration art of finan-
ernment
est in
Agriculture,
on
that
definition and
The FCA is
discov¬
ered to put some money
out and
the
upon
"books.
rower
revelation, of course, is
This
violating all the mores of
ington
One
exposures.
tell
^never
about just
insurance
an
the
a
cifically permits some $200 mil¬
and only that
ever
a
did.
Farm''
this
new
high to make the borrowers
too
reluctant to convert.
Mortgages
What
to
private lenders and not
seduce
New Pot of Gold For
Treasury
or
be refinanced
through this wonderful proce¬
dure, provided only the rate of
interest is attractive enough to
loans,
money
Newspaper
Guild member time and onehalf for writing it up, if one
net
might
Farmers
outstanding
"direct"
Home
study required to figure
extra
out
of
lions
Even if the
it
«hou)d be news.
other words, this
In
pot of gold is
beautiful
by
Agri¬
Rex Tugwell's Resettlement Administra¬
through the Senate with hardly
tion).
untold millions of "repayments"
Security,
the
Under
culture,
a
to
new
Agriculture
Secretary
of
direct
figure
short
to
in
result
will
Treasury
million
Benson,
go
some
expenditures" thereby.
the
enough,
agri¬
culture committees are not coz¬
ening to Eisenhower's plan for
loans to "part time and low in-
farmers,"
some
program
sources." /
used
be
agriculture
will
finance mechanics,
to
on
maybe
bricklayers,
union
to
For
white-collared
move
persons,
farming
into
up
at
icy of "moderate restraint," or
of keeping a tight rein on free
reserves
whilst making suffi¬
cient bank reserves available to
accommodate the current sea¬
of outstandings
present farmers.
Year-End Statement
Almost
day,
any
now,
sonal
the
So by using a
of such
very
Sam will be "enriched" and the
do
Eisenhower Administration ever
do
some
They
if any
a
deficit because
Canadian Bonds
the
line pretty soon.
current
—
little
re¬
Municipal
—
almost
are
on any
monoto¬
Tel.:
DIgby 4-3870
in
Canadian
fact,
to
a new
pass
broadly
mortgage
of Canada
•
Montreal
key
a
Eisenhower Ad¬
ministration has admitted there
is meat for the demagogues, he
has
he
words,
will
lost the
not
battle. In other
lefties
the
in
satisfied
be
Congress
let the
to
bank supervisory agencies make
determination
the
on
hank
It will in fact go to the
mergers.
Department of Justice, the most
snarling
ways
any
in
politics al¬
Administration at
cockpit of
any
time.
However, it is probable that
late to get every¬
body together this year on antibank
merger
legislation.
will be inescapable in the
tion year,
1956.
That
elec¬
■
(This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
the "Chronicle's"
views.)
own
and
\JT
on
Burns Bros. &
Stock
•
(Common) STOCK
on
Investment
Carl Marks
SECURITIES
& Co Inc.
SPECIALISTS
'
Company, Ltd.
Members
B
Copies
10
TWX: NY 1-1467
Toronto
CALIFORNIA
CLASS
request
LERNER & CO.
FOREIGN
Ottawa
such
once
the
New Views
50 BROAD STREET
TEL:
HANOVER 2-0050
Exchange
u
Toronto
in
limm
Securities
The
However,
figure
liberalizing
credit
Corporation
Affiliated with:
Association
into'
fell
in,
housing bill is bound
eventually
Canadian Exchange
Members:The Investment Dealers'
caved
FDIC
the
RIVERSIDE CEMENT CO.
37 Wall Street, N. Y. 5
Burns Bros. & Denton, Ltd.
ing substantially to lessen com¬
petition" should be passed upon
by the bank supervisory agen¬
cies. Then the Comptroller and
new
Burns Bros. & Benton, inc.
Dealers
only that mergers "tend¬
sition
not going to dampen
External and Internal
Stock Orders Executed
He took the po¬
and the FDIC.
down the construction boom. In
of
boosting
in
boom
Currency
the
of
Comptroller
and may or may not coincide with
y
month-after-month
tration
perhaps smaller
effect
tively competitive, than before.
Humphrey ran out on the
Congress and the Adminis¬
the
revenues.
—
were
effec¬
top in construction expenditures,
in Federal
of the
the
Despite
nous
rising trend in such
a
Administration
message
will show very
—
last in which
expenditures. The figures
catch up with this party
will
and
comparisons one's self.
budget
spending, and
Provincial
despite
that
banks
overall
competitive, more
talk
eral
probably not. The thing to
is to take a ruler and last
January's
the
gustily about its objec¬
tive of continuing to cut Fed¬
slightly bear this out,
but
be
long-range,
Eisenhower
the
impossible the figures
may
the
for
ment will
expenditures.
It is not
spending,
—
con¬
legislation
special,
no
it is just too
the
bets are inflationary. Probably
the forthcoming year-end state¬
As
istration in continuing to reduce
duction
Government
factor
economy.
work of the Eisenhower Admin¬
contingent lia¬
additional increment for
of
growth in the
an
the
year-end figures on fiscal 1955.
Of one thing there is a cer¬
taking it
around
the
Treasury,, pretending it isn't a
liability, and making more and
more
generous
loans,
Uncle
upswing in loan demand
plus
Treasury will issue preliminary
Federal
Nevertheless, the
Reserve will take no
it is reported.
The "Fed" will continue its pol¬
by
the
bility,
wants a mortgage
loan. He goes
to the nearest
Farmers
Home
office.
They
♦check
the
thing all the way
through. They appraise, set the
whole deal up, take the mort¬
FDIC,
line.
restrictive action,
$200
loans,
of
the
with
Study
is
horizon.
Federal
governmental expense. This
would
put more
people into
tion
estimate
official
the
a
the
out of the city and set
themselves
of
boom, and there is not a
visible dark cloud anywhere on
in
non¬
even
consensus
estimates
universally that the country is
afraid these easy loans
are
outlook,
situation.
the
of
accurate
an
Administration
of
re¬
Members
Why?
committees
the
human
conserve
is
boom
advanced by the Presi¬
"to
dent
the
part of
as
short-range
policy as such
will not be particularly infla¬
tionary. And it will not be delationary, even
though Com¬
merce
Secretary Week's great
survey showing the ever-rising
Part-Time Loans Doubtful
Curiously
the
For
can
A farmer
the
necessary,
more
Outlooks
governmental
tainty. The lingo of the official
release will talk about the great
previously
loans.
follows:
,
the
some
will operate as
Home
whisper,
on
likely
most
and
outstanding
deal, officially cleared through
budget and sponsored by
the
-Farmers
Senate Committee
the
nee
Eisenhower
"reduced
approved
already
scheme,
is
Farm
tended
was
Long, Short-Range
to report
able
growing things, and in competi¬
for making mortgage
loans
through
the
Farmers
Home
Administration V(nee
for,
little will be
so
ex¬
The bill, also with the bless¬
ing of the Eisenhower Admin¬
istration, has been needled up
with some special dope. It spe¬
type
then that
town,
been
had
added.
has been
opposed by
dominant "liberals" of this
of
scheme
plained heretofore in this col¬
umn, but something really new
priser stands to make a legiti¬
mate profit on an above-board
contract
of it: 'This is not
"Fine!—Now put down at the bottom
an offer to sell'!"
inferior
is elevated to this dignity.
This
$5,000 kick-back on Army but¬
tons or if some private enter¬
of
Chairman
Provides Government Take-Out
positor in a bank. If some twobarred gent in uniform gets a
Cook,.
of the Currency, and H. E.
Federal income
admittedly
this
paper
the investor in
policy or the de¬
Comptroller
mergers
So
the taxpayer or
Martin of
McChesney
M. Gidney,
Ray
taxes.
Wash¬
should
anti¬
Chairman
and
the Federal Reserve Board.
considerable
gyp on
a
William
governmental sys¬
pays any
division
trust
part with Treasury money, en¬
joying the free benefit thereof,
and no FCA institution or bor¬
in expen¬
Treasury
yet show a reduction
ditures
a
capitalized in
tem
Justice's
of
Department
place, or from the
Credit
Administration.
Farm
government paper.
Stanley N. Barnes, chief of the
insurance company
or
first
the
in
dignity
(2) A way has been
*
the bank
ele¬
magically
be
the status and
vated to
of
piece of
inferior
an
project, which first had as its
only chief backer, Rep. Emanuel
Celler (D., N. Y.), the Chairman
of the House Judiciary Commit¬
tee.
It
has
since
picked up
steam, collateral
own
this
behind
Administration
farmers' home customer
a
his
on
will
on
he can not
and
credit rating get the loan from
achieved:
(1) What is by
loans
bank
on
ineligible unless
is
admission
Humphrey, the Sec¬
retary of the Treasury, has ca¬
pitulated to the hounds who are
looking for political red meat
in the bank merger trend, and
has committed the Eisenhower
connection, it is noted
In this
magic have been
of
forms
paper
limits
Legislation
Merger
George
estate lendings.
real
the table of the Sen-
Committee
two
It
tory
Under the latest trick demon-
-ate
a
of a Treasury obliga¬
will also evade statu¬
dignity
financing program.
on
buy
to
gets a gov¬
farmer's
have all the
will
which
note,
tion.
then, nice
the by
of
Humphrey Backs Anti-Bank
Sneedle and Snits
Stock Brokers
guaranteed
-
means
1957
economy
THIS VERY MINUTE!
turned
farm, and the bank
prestidigitation, their inter¬
magic is not confined just
to
the big money, like a $25
billion
extra-marital
highway
cial
this
about
FROM US
from peo¬
farmer
the
to
if
be inflationary, even
loans and grants
to rehabilitate the
to
range,
7PREFERRED
some
program,
Reds.
savings,
private
over
strated
send
Money is delivered
ple's
*
POODLE'S
other
or
previously contacted, and
"Please
money."
manifestation of the Eisenhow¬
er
bank
some
says,
the latest
by
to
lender
slouches.
*
BUY
farmer-
The
signs, and then Farmers Home
without show¬
the
budget, these
boys
aren't
any
welfare purposes
ing
well.)
made
(
Then, too,
Deal and
method of only a token
even
as
note.
tricks
up
get their hands on somebody
else's dough to spend for great
to
New
Eisenhower
welfare
WE WANT YOU TO
write up the
(And collect it after it is
and
roads bill
a
heights.
astronomic
the
YOU !
YOU -YES
gage,
kind of
some
probably will pass, pushing the
construction volume to new and
And You
.
public housing and
the Home
or
independence of
Loan Bank Board.
the
^
on.
only
mention
will
press
political aspects of this leg¬
the
ij; »..m.
Winnipeg
I.:
...
\
•
NEW YORK
4,'N.
Y.
TELETYPE NY 1-971
Securities
Post Office
Square
Boston, Mass.
Phone HUbbard 2-1990
Teletype BS-69
@FedFRASER