Full text of Commercial and Financial Chronicle : July 18, 1957, Vol. 186, No. 5656

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

ikivu

MICHIGAN

JUL

191957

BUSINESS

ADMINISTRATION

ESTABLISHED 1S39

Financial
R«C. U. 8. Pat. Office

Volume

186

Number 5656

New York 7, N.
Y.,

Thursday, July 18, 1957

Price 40 Cents

Copy

EDITORIAL

Are We

■

Certain anomalies in the current situation

attracting considerable
They
\

that

cerned

attention

familiar to most of

are

feared

Experiencing
Inflation or Prosperity?

We'- S
It
us,

this

By J. AUSTIN WHITE

are

J. A. White &

time.

Prosperity,

but it is to be

what

of money

generally

are

for a good while past. And this type4 of expendi\ ture bids fair to become even greater than at
present. Most types of goods are now more plenti¬

they have been for

inflation, is Mr. White's diagnosis of

has

diminishing

been

not

manufactured

far into the future

with any

There

degree of clarity,
are

those,

some

that demands respect,

question; i.

one

program

is able to

dollar.

for
see

after certain deletions.

e.,

"high payout

in relation to
..

much

rather consistently sold higher
earnings than did the low payout group,"

and author concludes that the

what makes people stop buying.

loose

talk

"payout ratio is the
price-earnings ratio is the effect."

about

inflation today.
To
thing: rising prices, with
decline in the purchasing power of the
The feeling appears to be
widespread that this
inflation is going on and on, and
many decisions on investments (both

ment)

of them with standing

The

one

last

decade

attempts to

of the value

some

page

that

declines.

while

one,

apparently

many

seems,

people

ment

THIS

ISSUE—Candid

SYNDICATS

DEALERS

word

STATE

forces

page

on page

The

ber

Burnham
MEMBERS NEW

and

Company

YORK AND AMERICAN

15 BROAD STREET, NEW

role

the

stock

payout

valuation

ratio

been

subject of a significant
inquiries.
How much

num¬

market

value

earned

and

generated by a
out in div-

paid

idends than by

a dollar earned but
retained in tbcs business? Until about

Burreii

decade

Continued

page

Public Housing Agency

//VfSS

•

Dl 4-1400

T. L. Watson &Co.

Dept. Teletype: NY 1-708

Active

Dealers,

Banks

Orders

New

York

Stock

BROADWAY, NEW
offices

from

coast

Exchange

YORK
to

CANADIAN

goutkuxAt

Chase Manhattan
BANK

coast

Municipal Bonds

Brokers

CANADIAN

Executed

BONDS & STOCKS
All

for California's

Expanding
Economy

Canadian Exchanges At Regular Rates

Exchange

DEPARTMENT

BOND

Maintained

and

SECURITIES
Commission

Stock

Markets

CANADIAN

1832

New York Stock Exchange
American

Members

120
Bond

AVAILABLE

the

OF NEW YORK

TELETYPE NY 1-2262

COBORNHAM

Bonds and Notes

REQUEST

Harris. Upham

STOCK EXCHANGES

YORK 5, N. Y.

Members

DEPARTMENT

Teletype NY 1-2270

BROAD

STREET

NEW YORK

stock

"market review"

THE FIRST NATIONAL CITY BANK

ESTABLISHED

DAttAS

common

of the

distributed

SECURITIES

&OtU/u0€4t COMPANY

some

ago it was perhaps understood that earnings
made a greater impact on valuation than
earnings retained but it seems doubtful if very many
analysts really understood how much greater is the
a

ARE NOV

Net

FIRST

relate

significant

made

has

dollar

LETTER

MONTHLY

the

Nevertheless,

have been

that

common

the

MUNICIPAL

and

VIEW

BURNHAM

CABLE:

that

26.

BONDS

BANK

INVESTMENT

variables

valuation.

COPIES OF OUR

CORN EXCHANGE

ST.,N.Y.

the

and

Municipal

department

truly

photographs taken at the Annual Outing of the

THE

bond

precise measurement of

fears prosperity, jAnd,
have the thought that

June 28 appear

oil

HAnover 2-3700

30 BROAD

State, Municipal

Securities

CHEMICAL

all

possible.

U. S. Government,

telethone:

stocks.

never

conceivably influence human
attitudes and behavior is simply not

State and

can

might

common

and precise measure¬

men

advances

Continued

beginning of
as possible

much precision

minds

rising prices and a
decline in the purchasing power of
the
J. Austin White
dollar, and most conservative
people have a fear of such a condi¬
tion. But, in a period of good old-fashioned
prosperity,
prices also rise and the purchasing power of the dollar
also

the

cause

scientific because value exists in the

popular conception of inflation
is "Too many dollars chasing too few
goods." A part of this conception is
the thought of: (1) a Federal Gov¬
ernment
pumping dollars into the
monetary system; (2) a scarcity of
goods; or both. Such a conditio® does
result

entirely evident that these studies

indeed

witnessed

making factors in

is in order.

PICTURES

seems

caution

apparently being made

has

with

measure

the basis of this assumption.

upon

Continued

are

Statistical analyses show stock

group

in securities and in plant and
equip¬

all this and
related developments with equanimity if not with
S favor.. Some of them predict that labor will con¬
tinue to enjoy and to exercise its monopolistic
power to increase wages and impose other restric¬
tions which raise costs, and that accordingly we
shall have a rising price level for a long time to
come.
This, according to some of these analysts,
i will strongly tend to support a high level of busi\ ness, to act as a sort of built-in defense against
| depression, and to assure us a comfortable future.
The fact that any such course of events would
inevitably bring severe hardships to recipients of
fixed income seems to be regarded as unimport

years,

concomitant

who look

recent

and the
There

and from all appear¬

will be able to continue such

about

on distributed earnings
The sample of growth stocks

study is taken from the portfolios
Industry Shares and Massachusetts Investors
Growth Stock Fund,
numbering a total of eighty stocks

not scarce,

supply of dol¬
lars resulting from
people's borrowing, and inflation will
not go on
indefinitely. Poses what he terms a challenging

everyone it seems to mean

ances

are

higher valuation

retained earnings.

used in Prof. Burrell's

returns will check increased

able to obtain

wages

investors place

of Growth

good while past;
orders are
declining, and many enterprises are
finding it the part of wisdom to reduce inven¬
tories. Yet prices continue to
rise, and labor is

higher

Business expert's study of the relative values of
"growth
stock" earnings retained and distributed indicates that

have had in the past few
years, in pointing out
current inflation
stems from the
prosperity

than

money

ful than

Professor of Business Administration,
University of Oregon

Municipal bond specialist observes goods

high'and have been

are very

our

not

By O. K. BURRELL

Company, Cincinnati, Ohio

phase of the business cycle rather than the
type we
should fear caused by too
many dollars manufactured
by the government bidding for scarce goods. The Ohio

higher than they have

been since the advent of the New Deal,
yet capital

outlays by business

that

their

significance is less well dis¬
understood. Interest rates and the co£t

Relative Value oi Earnings:
Retained and Distributed K

4, N. Y.

DIRECT

WIRES TO

MONTREAL AND

Goodbody

TORONTO

BRIDGEPORT

•

PERTH AMBOY

115 BROADWAY
NEW

YORK

Orporahoh

Co.

MEMBERS NEW YORK STOCK EXCHANGE

NORTH LA SALLE ST.

CHICAGO

MUNICIPAL BOND

PoMcnox Securities
40

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

DEPARTMENT

IBmtk of Ant?riot
national

savyngs association

300 Montgomery

St., San Francisco, Calif.

The Commercial and

Financial Chronicle

Thursday, July 18, 1957

(270).

The

Dealers only

Banks, Brokers,

Large

Locked Up With
Blocks?

fin the investment

participate and give their reasons

with

maximum service

oil

large

your

time

have

you

Security Analysts

Just "Try

place at your disposal?
HANSEATIC." (

Stock

"B"

past several years the
looked askance at
Hip tnhaccn industry as successive
"
the

For

has

investor

rette

Exchange

Stock

American

New York 5

120 Broadway,

Teletype NY 1-40

WOrth 4-2300
BOSTON

•

SAN FRANCISCO

1946

lisned

al¬

Cities

to Principal

Wires

Private

prices in gen¬

then

The

this

RIGHTS

SCRIP

Since 1917

George

the industry

has been a
gain in sales of filter
cigarettes, while the fortunes of
individual companies have varied
their

success

filter brands. Reynolds

McpONNELL&fO.
jvieiiioers

Stock

American

now

BROADWAY, NEW YORK 5

120

TEL.

promoting
in particu-

experienced,

the

reasonable

Trading Markets

must

Inc.

fifth in sales

with

olds'

expectation,

most

Gas Company

Colony Life Insurance Co.

Scott, Horner & Co.
Lynchburg, Va.

and

that

remembered

important

brand,

LD 33

Trading Markets

which

economical cigarette to pro¬

recent

action

Industries

Alegre Sugar

Class A

&veeTvecaCompottV\\

one,

petitive

American

the

non

■

Orders Executed on Salt Lake Stock

Official Films
•v

On the

other

filter

the
of

the

WyomingUranium
Producers Uranium
Radorock Resources

Paramount Enterprises*
Baruch-Kenilind

Oil

Request

CAPPER & CO.
Salt

Lake

Stock

Exchange)

Jersey City, N. J.

Teletype JCY 119
Dlgby 9-3424

N. Y. Telephone
Direct

private wire to Salt Lake City

rapidly

the

Brokers

hand, if the
type remains
types it

otliei

allows

that

from

num-

j- 4

thE wrifing

MONROE AUTO

which

1932
Richard

Stern

the

issue

since

the

early tw-enties. Thm vield of
53/4% on the present dividend is

1956.

has

remained

un¬

Since

received
year

depreciation,

net

Table

The

data

(be

earnipgs

building and plant conManufacturing
plants

normallv

fluctuations
entered

companv

the

central

MICH.
DE 75

Office—Bay City, Mich.

MASSACHUSETTS
SECURITIES

interest

the

10,000
approximates
about

Retail

Distribution

KELLER BROTHERS
CO., INC.
ZERO COURT STREET, BOS I ON 9,

supervision
in
NewPhiladelphia
and
Boston.

MASS.

Telephone Richmond 2-2530

sprinkler
York,

Trading Markets

purchased
in' the
Fire Alarm Company

was

Automatic

sta-

tionS

R.
I.; Columbia and
Wrightsville Pa.; Warren, Ohio;
Atlanta, Ga.; and Salisbury, N. C.

dence,

Tpfe'vpe

BS-630

Later Grinnell acquired from the
New York Telephone Co. all of
the stoCk of Holmes Electric Pro-

In February, 1953, tective Company, which furnishes

central sMion burglar alarm and
Continued

on page

N. Q. B.
OVER-THE-COUNTER
INDUSTRIAL STOCK INDEX

1ABLL I
GRINNELL
(Parent Company, Not Including Operations of Central Station Subsidiaries)

Reported

Years

1956

Net Income

Net t'icome

Dividends

Pa;d

Net Sales

Depreciation

(—000)

Per Share

$189,022

Ending
Dec. 31

Reported

$2,957

$8,829

$17.65

$4.00

35 Industrial Stocks

3.75

14 24

3.00

6,256

12.51

2.25

interest rates.

1946

435

2,840

5.68

163,183

*Not

18-Year Performance of

(Incl. Extras)

8,325

the

Building

associ-

aJedwith ^ heav/ industry!

7,118

for

Branch

Grinnell.

1,147

Reynolds

26,

WOodward 2-3855

income

2,708
1,751

that

DETROIT

jn order to diversify itself from

located in. Cranston and Provi-

employs
Plant area

Exchange

Penobscot

except

however,

1051

Stock

cash

every

136,006

It should be noted,

appears

Stock Exchange

Detroit

1923

1929.

have

shown

apgr

ated with

1955
company,

3% it

Members
Midwest

$6.9 million

1949

cigarette

aver¬

share for

underpriced.

(including dividends received
subsidiaries) and dividends

the business.

ner

MORELAND & CO.

1952

past 10 years. At

$43,393,-

especially iiij this day of soaring

high for

profit of 98c

f1Qm

valves, plumbing and heating materials and other products associ-

people.

share in book

per

operated

spray

16.65

not

age

and

through 1934.

Sales,

lion subcontract from the Atomic

higher, wo find a stock, approach¬
ing industry leadership selling at
7.8 times 1957 earnings, which is
for

$11.00

value

position is strong.

since

dividends

strong expectations that 1957
may
be
$1
or
more

ratio

Over

payable are the sole long-

stockholders

the company received a $230 mil-

with

low

COMMON

vessel,

naval

atomic

Dec. 31,

changed

share,

earnings of $5.91

the

DEVEL--

NEW

OPMENTS REPORT ON

preceding a common
capitalization
of
500,000

stock

1956

per

6 COrtlandt 7-5680

debts

term

nl°clCf^ manufacturer, 2,0O0.000 sq. ft. of floor space.
S still strongly mwith atomic^and defense overtones to
Jut ? there,
There also have been some
the
trend
its
acoTThnrt

Bankers

Investment

FOR

WRITE

adaptation of its sprinkler sys¬

approaching the position of

111 Broadway, N.Y.

Grinnell

field.

atomic

developed for the U. S. Navy

of notes

earnings

en-

3rF+ea,r
+!je
*rrei?ce Canadian plants are located at
Delaware which supplies auto^ miT' C1^ie^e willalready Toronto and Oshawa, Ont. The rnatic fire alarm and automatic
be mcreased
Thus, Revnolds,
•

Co., Ltd.

Securities

Tokyo, Japan

portant producer of pipe fittings, emphasize the stature and growth

struction.

that

experience

growing

000

are

able

•

1 Exchange PI.,

Yamaichi

Inc.

Affiliate

plant

This

Portsmouth, Ohio.

The financial

e n-

leader

separation

Working capital enualed

stabiland

company

(Members

fallout.

protection
equipment, Grinnell also is an im-

share from this price increase
the othei two leading manufac-

turers.

York,

New

have

may

abled the company to gain invalu

self

service

uranium

tem

capital

per

Exchange

Yamaichi
Securities Company

while at sea, to decontaminate it¬

the manufacture of fire

dependence

lesser

write

glamorous growth issues.

sion

growth.

non-filter cigarettes, Reynolds
will not show as gieat an inciease

below

Prospectus

Call

Commission for the con¬
struction of a new gaseous diffu¬

also

busi-

business

raise

of
the
cigarette
although
increasing
tobacco
and
promotional
costs
may not permit the full increase
to be cairied through to pre-tax
its

prima-

competi-

earnings

™gs'

financed

goods f ield;
the other, a

the

should

been

expansion

operating

ness

joying

price

—

For current information

as-

corn-

price

increase

inhibited

old;

1930

Tel. HAnover 2-4850

Exchange)

Stock

near

years

major

tive

<\V

STOCKS

Energy

STERN

106

over

not

two

increasing

With

JAPANESE

apprecia-

been overlooked in the search for
more

components

other industry lead-

and

consists

companies,

37 Wall St., N. Y.

york

Grinnell's

size, due to
the
substitution
of
the
cheaper
filter for a portion of the tobacco
and due to the desirability of less
expensive tobaccos in this type of
cigarette. This is emphasized by
the

branch offices

our

tion could take place in this issue.

limited swings.

has

This

Northwest Productions

ESTABLISHED

tenable

considerable

The writer suggests that this most

rilv bv retained earnings.

approximately 4% while holding
a
steady price on the filter type,

Helicopter

Express

wholly

not

very satisfactory iii-..0t,vioUS stock (listed on the New
earnings,

RICHARD

has

Age

the price of
regular and kingsize cigarettes by

Roadway

Grinnell

duce than the regular

ei-s

Orradio

below the gain
general, but

Grinnell Company

Reyn¬

selling cigarette.
worthy to note
that the filter-tip has become a

Tobacco

Punta

ings,

sump^0n,
1
'

was

Security Analyst, San Diego, Calif.

At this point it is

EQUIPMENT

est

Alabama-Tennessee Natural

Doman

Direct wires

Reynolds' earnings.

1936,

"Camel," is still the nation's larg-

Bank of Virginia

Tele. LY 62

in the younger age groups using
any but the filter type it seems
reasonable for this trend to continue
with
further
benefit to

the price has -tended
to follow the earnings, but again

has again met with success beyond

First

Birmingham, Ala.
Mobile, Ala.

New Orleans, La. -

accelerated and with few smokers

indifferent

face

Since

believed to have reached the

position of fourth

far

industrials

for

filter cigarette,

one

appreciation

market

50%

all brands. Further, during
1958 Reynolds' introduction of the
"Salem"
mentholated
filter-tip

Air Control Products,

NY 1-1557

HAnover 2-0700

among

REctor 2-7815

American Stock Exchange

19 Rector St., New York 6, N.

the'The trend to filter-tips has been

earnings continued to increase
Fiom 1932 to 1936

overwhelmfng^suaes^of^w'inston," number

Exchange
Exchange

York Stock

New

Freeman

tremendous

with

A return to
the pre-scare evaluation of cigarette stocks could result in price
earnings ratios of between 12 and
early 192U's, iaggeu notaoly dur- 15 times, even with the general
ing the '27-'29 period, then re- market at a lower level. Therefleeted stability on the down side fore, with no further gain in earn-

cancer

'30's.

early

years,

trend
has
been
up,
especially in the last three years,
Marketwise, the stock reflected
the strong earnings gains of the

immedi¬

scare

York Stock Exchange

Members New

Members

nies, and the prices of their stocks,

earnings

their
values.

effect

ate

Specialists in

al¬

three

most

times

the levels estab-

between 1931
and 1944, per share earnings declined
by more than 50%
and
dividends were reduced by exactly
one-half.
Since 1944, the general

trialstock

are

the

intervening

though indus-

eral

Steiner, RouseS Co,

back through the years,
more than four-fold
in
sales and
a
capital

1953 risen above

CHICAGO

PHILADELPHIA

be-

levels

Bought—Sold—Quoted

Richard

the next few years.
Each announcement of increasing statistiincrease
cal correlation between cigarette
history exceptionally free from smoking and lung cancer has had
dilution of the common
equity, less effect on the sales of cigaearnings per share have only since rettes, the earnings of the compa-

manu¬

stocks
Member

Associate

Coropany

GrjnneU

Prespnt

Going

facturing

1!)20

Established

the

Corporation

curity Analyst, New York City.
(Page 2)

in spite of a

price
ciga¬

average

nor

Tobacco Co. "B"
Stock—George D. Freeman, Se¬
Reynolds

market would ap- in both an inflating and deflating
«£*•eC0n0my' may not repeat itse" in

the

held

have

Louisiana Securities
R.

Stern,
Security Analyst,
San
Diego, Calif. (Page 2)
expectations. Hence, if
our. earnings
estimates are real¬
ized, it would appear that a divi¬
We wonder whether the ability
dend increase may be forthcom¬
ing, to perhaps a $3.60 dividend of this issue, largely to disregard
rate.
On this basis the yield at the action of the general market

.mfavorawl puScity

New York Hanseatic

Tobacco Company

J. Reynolds

Alabama &

earnings

order, why not take

Participants and

Their Selections

discussed.)

has paid out somewhat more than 50% of earnings.
The'current rate is only 45% of

Security Analyst, New York City
Member N. Y. Society of

sizable

advantage of
the complete facilities, close co¬
operation and seasoned ability
our large trading department will

intended to be,

last ten years

GEORGE D. FREEMAN

block transactions.

particular security.

they to be regarded, as an offer to sell the securities

are

prob¬

count

can

you

mean

for favoring

(The articles contained in this forum are not

nationwide contacts and long

familiarity with placement
lems

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

Week's

This

Forum

A continuous forum in which, each

Try "HANSEATIC"
Our

Security I Like Best

reported.

1.50 "

FOLDER

REQUEST

National Quotation Bureau
Incorporated

46 Front Street

New York 4, N. Y.

Number

186

Volume

5656

The Commercial and Financial Chronicle

(271)

Effect of the Price Level Upon ;
Economic and Business Outlook
By ARTHUR R

UPGREN*

—O.

Burr ell _/

School

Dartmouth

Are We

Administration

of Business

Experiencing Inflation

—J. Austin White

College, N. II.

licHTfnsTfin
■

Prosperity?

OF GAIN

Effect of the Price Level
Upon Economic and Business Outlook
—Arthur R. Upgren

Upgren, in analyzing downward price level long run
trend, and the encouraging business and interest rate outlook,
reports

plated by President Eisenhower in 1954 with only
Iraction

due

economist concludes:

will be

(1) the dollar's future purchasing

Keyboards

minor

Prospects—Robert

(2) continued higher interest rate prospects

are

Some Observations

and

(though not urging inflation to avoid recessions) mildly
rising prices may promote better business . . . and may be
better than the old way of "Boom and Bust." Evaluates recent'
price inflation's
protection in
To

discuss
first

how

recent

has

had

the

over

longer

years

the

past,

and

much

how

•

are

the future.
Most people

think

are

going to have
inflation

"high,

hand¬

and

some"
Artnur R.

but

think

Upgren

wide
I

are

going to have
inflation "not

fast."-

Thus, if I

..the
question:
High, Wide and Hand¬

answer

."Inflation:

some—Or Not So Fast?" my an¬

"Not So Fast."

would be:

swer

Inflation

prices.".

"rising

there

That's all

is to its definition. Just two words:

CARIBOU

CATARACT MINING
14

Clearly,
purchasing

;

prices
rise,
the
of the dollar

Factors to Consider in
Buying Canadian Bargains

changes in
—Roger W. Babson__'_L___l
price level- inflationary (19461948), deflationary (1949) and in-r V Fundamental Role of Business Is
stationary (1951 and 1956), they i V—Leland I. Doan

SHAWANO

That is because

this

purchasing

measure

the
It's

of
dollar by the prices of goods.
no

As
let

.It

that
on

difficult than that.

inflation

power

to Operate

Profitably
18

1948
rising

known

What Kind of Tax Reduction When
Taxes Are to Be Reduced?
—Richard A. Musgrave

Tax Policy for Economic
Growth—William

had the wellprices of the am-*
That was

mediate postwar period.
when the

Fellner

"suppressed inflation"

recent years,

thoroughly

prices in

the last ten

occasion

one

inflationary period
1956, up to date.
look

in the latest
from March,

Spokane Stock Exchange

1
9

Harry A. BulHs Optimistic

prices in February, 1950, the cost
of living fell almost precisely 4%
and wholesale prices fell almost

prices

call the
usually
Prices"
by
we

of living but what is

cost

called

"Consumers

those who calculate it.

it is

not

called

the

know

never

The

cost

reason

of living

whether

what

dealing with is "the cost
living" or "the high cost of
living" or still yet "the cost of
high living."
we

are

DIgby 4-4970

As We

See It

Business for Balance of Year

(Editorial

the longer

look
*An

run,

wholesale

also like

prices

be-

address

by Dean Upgren at the
Annual
Regional Meeting of The Aetna
Life Insurance Company at M'llion Dol¬
lar Round Table, Greenbrier, White Sul¬
phur Springs, July 1, 1957.

_Cover

Radiation Inc.

Bank and Insurance Stocks
just slightly in excess of:
rise of 3.9% id
Business Man's Bookshelf
the cost of living since March,
1956. The level of wholesale prices
rComing Events in the Investment FieldLi-:.-in
1948-1950
fell
considerably
more
than wholesale prices had >.
Dealer-Broker Investment Recommendations.____
risen in the last 15 months. V

The

substantial,

one-

rise,

Einzig: "Is Britain Facing

prices in the last 10 years /was, the 1rise of 10% in the cost'of'fi-vingS,

From

/Indications

low point for 1950 to March,*;
1951. In this same period, wh'olef gle prices rose at their very peak
by 17% and the level of wholesale
prices in the inflationary period
of the last 15 months has only,
passed this 1951 peak by less-than
half a percent. Next, I' ahi bure

few
full

March,
as

price

Mutual
.

1951

level

of Current Business

Funds

Observations—A.

Our

'►

•

'♦

Wilfred

May

.•

Reporter

■

Report.

Utility

these five
y~ars, prices rose by only 0.8 of
1 %
a
year and wholesale
prices
fell by about the like amount (as
annual average).

cline.

look

Security

The

ahead

Philadelphia

Loo Angelas

Chicago

Dallas

Registration.

Offerings

Epsco, Inc.

Corner

and

Washington

and

You.

Topp Industries
2

TELETYPE N. Y. 1-5

Chicago
*

•

Glens Fall*

Worcester

Universal Transistor*

—

Quinta Corp.*

-Mr. May's column not available this week.

DANA

Park

HERBERT

Twice

Weekly

COMPANY,

Diapers'

WILLIAM DANA

•,

Publishers

N. Y.

ary

25,

Thursday, July

1957

18,

state

Other

CMcago

issue

cofporation

and city

news,

Offices:

Ul?

—

(com-

quotation

bank

clearings,

etc.).

135

South

(Telephone

Salle

Pacific Uranium

Eng¬

by William B. Dana

second-class
at

the

post

*Prospectus
matter

office

Request

Pebruat

Nev

York, N. Y., under the Act of March
8,1879.

year;

Canadai

Other

St.,

STate 2-0613);

Bank
S40.000

and
per

Note—On
the rate of

$63.GOo

per

Record

the

BROADWAY, NEW YORK 6
WHitehall

3-3960

Teletype NY 1-4040 & 4041
—

Monthly,

(Foreign postage extra.)
of

year

Publications

account

INCORPORATED

$67,000 per year.

Quotation
year.

m V. FRANKEL & CO

Rate.

Subscriptions in United states, U.
Possessions,
Territories
and
Members
Pan-American Union, $60,000
per

market

news,

other Countries,

onH

Monday

staSal

records

Smith.

Subscription

President
rresiaeni

Thursday

London,

to 9576

spirt rt
SEIBLRI,

1957

1942,

Domlnion

Every

Gardens,

Edwards

Company

SEIBERT, Editor & Publisher

c/o

Reentered

Place, New York 7

n,vA

olete

Schenectady

thl^k

pwge

YORK 4, N. Y.
•

Strategic Materials

You—By Wallace Streete__

Direct Wires

The State of Trade and Industry.

•

Continued

ST., NEW

•

*
'

Members New York Stock Exchange

•

Security I Like Best_____

WILLIAM

Boston

Exchange PL, N.Y.

Salesman's

Tlie Market

Consequently, if we measure
the purchasing power of the dollar
from
March, 1951
up
to
date,
there has been only a slight de¬

Spencer Trask & Co*
•

...

_—

Security

REctor 2-9570

Nashville

Railroad Securities

Prospective

Teletype NY 1-1825 & 1-4844

Securities

Securities Now

HA 2-0270

•

Governments.-..-:

Reporter's

Public

Albany

40
•

has emphasized this. In

specialized in

TELEPHONE HAnover 24300

Our

FINANCIAL CHRONICLE

BROAD

Singer, Bean
& Mackie, inc.

IT
42

—

___:

Reg. U. S. Patent Office

________

;;

*•v*

we;have

ever known. Dr. Arthur F. Burns,
formerly Chairman of the Presi¬
dent's Economic Advisory Council,

\ :•

Activity

to March, • 1950,-we
enjoyed the steadiest

experience

News About Banks and Bankers

people realize: that in
five-year ; period
from

nation

Crisis?"____

Washington Ahead of the News—Carlisle Bargeron

(Consumer Prices) from the Feb¬

the

McRae Oil & Gas

44r

For many years we

have

Pacific Uranium

land.

1160

the, inflationary

Published

'•

JCY

Equity Oil

The COMMERCIAL and
«i

HEnderson 4-8504

Teletype:

Regular Feature*

precisely 10%. Almost everybody
forgets about the decline in prices.
This fall in the cost of living of

Exchange PI., Jersey City

—

very

(Usually consider what

say

years

have fallen

than they have risen

When

correct

J.F.Reilly&Co.,Inc.
Members Salt Lake City Stock Exch.

released like
the jack-in-the-box to fly up in•;*„ Congressman Wilbur D. Mills Restates Conclusions Reached
our faces as an inflationary price
by His Committee on the Economic Outlook_rise. By 1948 this price movement
had rather well spent itself.
George C. Johnson Urges Prompt Action on Lowered DownThen from around August, 1948
Payments on Homes.
to
the
low point
in consumer
of the war years was

ruary

look into the last ten years.

DEVELOPMENT CORP.

these:

are

power

falls.
•

MAGNOLIA PARK, INC.

—

•

.Rising Prices.

MINING CO.

the

defined

best

Reverting to recent

infla-

likely to have

WYOMING

Trust—John A. Barr__

■

(3)

tion

Reviews Price Level Changes

how
have

4-6551

URANIUM CORP.

Challenge—L. Newton Thomas

STREET, NEW YORK

Telephone: WHitehall

Growth Potential to Assure Business
Progress

Coal Faces

let

you

obsoletes!

—Allen W. Rucker

your

and

Anti-Tri^st Laws to the Labor

WALL

Business and the Tight Money Picture

P.. Hickok__

been

(2)

years;

_■

Canby Balderston

Tapping

there

Sprague__

Obsolete Securities Dept.
99

Present Problems and Possible
Plight of Local Finance

)

—C.

one
had cause this is the price level
what it' is and; which business does business.

(1)

much

.were

capital, and' seer profitable
ahead for those protected by life insurance.

years

inflation,

say

much

around

Applying

and increased demand for

rate

best

'—James

under conditions of higher interest

occurrence

Long-Range Business Effects of the Suez Crisis: Here
Abroad—John E. Reynolds

serious depressions

causes

yours

Board—Ira U. Cobleigh

U. S.-Canada Economic
Momentum and Automation's

will

good, and (3) falling price level

the Big

power

pressures

maintained, and that current inflationary

abate soon;

The well known business

modest inflation.

quote

is almost 100% ahead of that contem-

economy

our

Cover

May be

Dean

——J

AND COMPANY

A HATFUL

Cover

Dean and Director of Research

Tuck

PaSe

Relative Value of Earnings: Retained and
Distributed

Amos

B. S.

Articles and News

fluctuations

Direct

PHILADELPHIA

Wires

DENVER

exchange, remittances for forelgn subscriptions and advertisements must
be made in New York funds.

SALT

LAKE CITY

The Commercial and Financial Chronicle
4

(272)

•

Keyboards

shares listed

and

(outside of a hospital) the
first impression usually seems to
be of a va«t Gothic cathedral, and
organ

great

a n

tones

and
re¬

are

and

leased

directed by an

agile musi¬
cian, creating
music by vir¬
tu e
of phe¬

organ.

Federal

created

keyboard

simultaneous

ir«

Cpoieiyh

and

manual

the

and

addition to its organ, mon stock by investors, and, in
Solovox, an electric particular, the listing of its shares
which, attached to a on NYSE with trading commencpiano, could duplicate the effects ing July 15, 1957. (Opening sale?,
of such solo instruments as trum- 36%.)
This represents
another
ipond,

had

and

nomenal

wasn't

lawyers

whose

sounds

overall executive of the company

The but he is an eager teller of the
Trade Hammond story to investors, fiCommission
"rassled" over this nancial analyst societies and the
knotty question and finally the general public.
He takes great
verdict was—pipes or no pipes— pride
not only «in the corporate
'that Hammond is an organ and prestige that Hammond has deit's been so regarded ever since, veloped through the years, but in
Before
World
War
IX, Ham- the broad acceptance of its com-

pipes,

sorted-length
pipes,

instrument didn't have

Hammond

as¬

pets, clarinets,

Thus the classic
pedal dexterity
organ; and "the only standard type

truly progressive company,
Granting the historic growth of
Hammond, what shall we say now
about its future? Well, it should
gross $25 million this year and
attain a new high in per share

-Vgain came into play with his earnings.. Listing on NYSE should
development of a control system increase the number of its stock and prosperity for today's subject A>r jet bombs.
holders considerably. About the
company, Hammond Organ.
After the War, transition to future sales potential, the best we

popular musical instrument which
lias created prestige, profitability

didn't

start

musically civilian production was

out

Hammond

Laurens

however

nell

1920

Bv
to

with

1916

his

had

degree.
patents

over

a ticklcss
product
for
Co., founded in

background

Hammond

Clock

(In 1922 Mr. Hammond

1928.

leccnt lemarKS.

ac-

Mr Soin nis

private homes and
jailer churches, as well as the >»,
Chord organ on which persons 11.-action cf one iicrcent of families
vUh but slight musicianship, can
blay a variety of musical seiec- .^M^nsion ot cultural interests
for

organ

including

credit,

clock,

swift, and can

Hammond developed a new spinet lenscms

EJaSK

tions in full harmony. The Chord

their

and

and projected 3-dipictures, but he was

made

mensional

accuracy.

effective

was

Mr.

tenacious

again changed, this time to Ham- Hammona ,on* IN
Organ

mond

Hammond

Company.

and

;

sometime

year sales exceeded $16 million
the and the company had attained a

early 30's, Hammond was doing
nearly 75% of the electric clock
business in the U. S., and produc-

major status in its quite specialized field of endeavor,
This company has operated

ing

Profitably

many

clocks

week.

electric

75,000

Then

competition,

welter of conflicting patents,
invaded the industry and a new

and

every

year

since

i9.:^ and has paid cash dividends
without interruption

since

xSEr

that

that 60 cycles became an industry

standard,

1937.

Leonard J. Smith With
•

Special to The Financial Chronicle)

SAN FRANCISCO;
^

with

ated

shaft

This motor turned

with

shearson,

associ-

Hammill

1<or the fiscal

year

ended March

humped

8V2 miles of wiring, the Hammond
Electric

Organ

first

formally

City

April

units

were

was

born.

played

15,

1935,

sold

that

was

Radio

and
year

1,400
at

$1,250 minimum price.

>'ear Period April 1,

1932 through
March 31, 1957, earnings increased

& Co-

Hammond

owns

five

plants in the Chicago area comprising 565,000 square feet of floor
space and giving employment to

W. bchwarz Opens

NEWARK

Frederick W

majority

Sehwarz is conducting a securities
business from offices at 606 Sum-

conducted by the ''New

was

Steel

WALL

STREET

NEW YORK

LOCAL STOCKS

5, N. Y.

looking forward to

are

RHODES-HAVERTY BLDG.
WALNUT 0316

ATLANTA 1, GEORGIA
LONG

Refined

—

DIgby 4-2727

business

and trade.

The poll

worst

over

for

1957:

Some

production.

even

They

gradual improvement in third quarter
toward year-end, according to "Tne Iron

(3) continued strong demand for plates, structurals, and oil country

goods, and (4) a stronger export market.
d
;
A major automaker is ordering good tonnages of new model
steel for August, and another is taking old model tonnage for the
same month. Steel sources say the auto companies will make about
100,000 more cars in third quarter than had been looked for earlier.
The Iron Age" publication says these straws in the wind are
'

prompting steel salesmen to urge buyers to place September
orders early. While these suggestions are not expected to develop
an
all-out scramble for steel, some buyers are likeiv to hedge
against

The

sudden upturn.
metalworking weekly reports that operations in the last

'57

This

based

will average around 84-85% of capacity.
expectations of leading mills that third
quarter operations will average about 82%, followed by a fourth

probably

the

to an average of over 85%.
> ■
output of 84.5% of capacity in last half would
approximately 56.5 million ingot tons.
This, coupled
with first half output of 60.5 million, would approximately equal

quarter pick-up
An

average

produce
the

record

million tons

117.0

turned

out

1953.

strip will show up in
August, although July also was better than had been expected.
One mill reports, that August deliveries will be about 25% ahead
of July,
'■ % /
'..-..."V;,"
Third quarter tonnages of heavy plates and structurals are
The pick-up in new orders for sheet and

allotment basis. The mills expect capacity operations through

rest

the

the/year.

Producers

are

country seamless for the. third quarter.

to capacity onJoil
And there will be sizable

booked

into the fourth.
Meanwhile, "The Iron Age" reports that appliance manufac¬

half with low raw material inventories,

turers are entering second

including steel. Appliance people also have cut back on production
to the point where output is below sales levels.
If a last-half
drive for business is successful, appliance makers are likely to be
in the steel market for heavier tonnages of sheet and strip in
fourth

quarter.
growing market for

The

tinplate is

sparking

expansion \

that will add a million tons to electrolytic capacity,
according to "Iron Age" weekly. New electrolytic lines and re¬
vamping of existing equipment is boosting capacity at plants of
seven
tinplate producers. Tinplate capacity on the last official

program

count

7.3 million tons a year.

was

Operations Expected to Continue Sluggish

Steel

....

July

and

holiday

several

For Next Few Weeks

weeks.

recovered only slightly after the Fourth
expected to continue sluggish for the
vacations in metalworking and steel

are

Mass

producing plants, as well as a slackening in over-all demand, will
contribute to the lethargy, "Steel" magazine reported July 15.
In the week ended July 14, output of steel for ingots and
was

national average of 80.5% of capacity, compared
in the corresponding week of last year—steelthen held production to an average of 14.9%

12.5%
strike

capacity.
At the 80.5%

rate of last week, output was 2,060,400 net tons,

compared with only 307,735 tons in the comparable week last year,
the weekly metalworking publication said.
The 80.5% rate represented a two-point recovery from that

holiday (Fourth of July) week.

Sharply reflecting the general slowdown is the steel produc-'
rate in New England. It was 20% of capacity in the week

ended

Liquid

Exports—/m ports—Futures

DISTANCE 421.

shall

Age," national metalworking weekly.
The mills' optimism is based on (1) an expected upsurge in
automotive demand, (2) a reversal of the inventory-cutting spree,

tion

SUGAR
—

that

York Herald Tribune."

record year for steel

followed by a strong push

of the preceding

Raw

the

believe

men

believe that '57 could be

LAMBORN & CO., Inc.
99

expect

year's record 244 dropped below last year's 245 mid-June
figure and is the first month this year to drop below the year
ago level.

workers'

BONDS

even

This

MUNICIPAL BONDS

may

b Department of Agriculture announced that fanners received
higher prices for their products in the mid-June month.
The
Agriculture Department's index stood at 244 (1919-14 equals 100)
for the month compared with 243 for the previous 1957 month.

castings

Avenue.

j ESTABLISHED 1394E

CORPORATE

polled

Executives

the

covered the whole field of industry,

with only

STATE AND

and

higher sales and prices, inventories will remain unchanged,
employment will continue at present levels and that profits will
be higher.
The business leaders participating in this country-wide poll

that this country is

assurances

Prosperity. Road

January-July record of business.

Steelworks operations

mer

1957

see

166%.
Today

better its

continue

carryovers

tone1957» nct earnings were $4,AKLR HEIGHT b, Ohiowheels on it; and depending on 388,087, equal to $3.27 a share on, Gan nei
Abbott, Ji, is engaging
I he number of times these
humps l,le common, and amply justifying ]J} a securities business from ofwent past an electric coil, various cash dividends of $2.30 per share ^1.ces
j?
Shaker Boulevay.
scale
tones
were
electronically distributed (in the fiscal year) to ^r- Abbott was formeily with
produced, and, implemented by common stockholders. In the five Frescott & Co. and Ross, Borton

certain

almost

Cal.—Leon-

Sm|th has become

ard j

provides optimistic

and

volume

on an

Shearson, Hammilt Co.

rhcie was a 4-lor-l split of the q0
Smith was formerly an
long
range
industrial
emphasis stock in 1937 and two 100% stock 0f/icer 0f stern Douglass & Co
seemed
indicated.
In
1933
a
dividends since 1953, so that today
stripped down piano with everyoutstanding about 1,- Reynolds & Co. and Francis I.
.thing thrown out but the key- ->00,000 of Hammond Organ Com- c^u pont & Co in San Francisco
board became the housing for a P«ny common held by 3,600 stock®
& . .*■ T
machine powered by a 1/100 h.p. holders
Gardner Abbott Opens
electric motor.

poll undertaken by America's top business leaders clearly
that business managers are confident that- the last six

months of 1957 will exceed the January 1st to July 1st business

half

:>u air with one finger of the vet;sit ts each yeai,
>ak'ht hand, and press a button cr leisuie which om bountiful
vears
ahead
of
the market for with; the left, that supplies
an economy
now affoids, suggests
such.) To sell electric clocks, Mr. appropriate and harmonious three steadily enlarged interest in music,
Hammond first had to sell power part chord.
(The Chord Organ is with Hammond as a major benestation engineers on uniform-type 'popularly priced and can be ac- Hciary. Hammond should continue
generators operating at 60 cycles, quired, $97.50 down
and $27.50 to make both inusic and money,
or else
his clocks would, all de- per month.)
And °n that tone of.optimism, we
velop different velocities and goof.
< By 1953 the company name was salute the larger scale trading of
tually

®^

Organ requires only that you play

Industry

Production

indicates

trombones, banjos milestone in the progress of this

h)d members of the violin family,
in existence till 1935 when a new
Came World War II and Hammusical
catalyst
was
added
mond found it could switch from
electronics!
And with electronics organs to militronics with a minicame
the Hammond Electric Or'™-im of factory changeover, and
gan,
an
amazing, and amazingly Mr.
Hammond's fertile genius

Auto

Organ Western Export

Co.

hun¬
of

Index

Food Price

Busines-s Failures

iL.

Corp., a wholly owned subsidiary,

in 1937 the corporate name was private homes,
changed from Hammond Clock
Mr. Stanley M. Sorenson, after
to Hammond Instrument Co. 24 years of association with Hamfhen some
traditionalists came mond, became President in May
forth to opine that because the 1955.
He is not only a complete

dreds'

Outside the
made through

are

90% of sales are to homes and
merchandising success and churches, with bulk of sales to

and a

stirring an¬
them swelling
from

sales

S.,

Commodity Price Index
-

and

Trade

Retail

•

State of Trade

se¬

to coast,

have been sold in
60
countries
in the

than

Output

CarloadingSy

organs

Hammond

From that point on, the Hamrnond organ was both a musical

ks of an

anybody tbi

through 450

Production

Electric

out¬

Western Hemisphere.

York Stock Exchange.
Whenever

its

New

Hammond

Steel

The

•

lected dealers from coast

of the investment merits of a

musical instrument company to have its

achieved

put

Distribution

harmonically
specialized enterprise—Hammond Organ Company, the first
some

states.

Enterprise Economist

Delineating

stockholders

with

COBLEIGII

By IRA U.

producer*
iiii of the'

the world's largest organ

the Big Board

Hammond, is

1,300 persons.

over-

Thursday, July 18, 1957

July 14.

In the preceding holiday week, all of New Eng-.

land's steelmaking

capacity

was

closed down.

in the week ended
Pittsburgh, 0.5
point to 86.5% at Chicago, 4 points to 93% in the Mid-Atlantic
district, 4.5 points to 73% at Youngstown, 8 points to 80% at
Wheeling, 2.5 points to 88% at Buffalo and 1 point to 1,0% in the'
Steel

production rates in other districts

July 14: They rose 4 points to 89% of capacity at

*Continued

page

Volume

186

Number 5656-.

The Commercial and Financial Chronicle

(273)

U.S.-Canada Economic Momentum
And Automation's

Chairman, Federal Reserve Bank
and

Treasurer,
of

Sprague

of Boston

Electric

Company

North Adams, Mass.

central banker and

national income

rose

for

both

22%. In commenting on the
growth, the twofold chairman

even

acceleration
mercial

scale will require

mass

slow, gradual

man

power.

tin g
in hu- <%

a r a

boom
m a n -

before.
It

•

that

tives

true

the

full

by all
ple.

have

breath

slackened

and

"consoli¬

positions."

labeled

"rolling

ad¬

justments"— we have taken off
again on our upward surge with
and

energy

enthusiasm.

gains of the post-war
made

this

period

without precedent for most North

Americans. And what's
Canada

and

the

more,

United

have swept up the

both

States

climbing high¬

of this 10-year boom without

way

seriously over-heating their
spective economic vehicles.

re¬

This gives us another breather
the third since 1947.

convenient

check

over

examine

present
some

the

positions,

question

and

Radio
turers

work

smug about past

our

peoples

modest, "So far,

"What next?—Where

to¬

and

wars

su-

by Mr. Sprague before the
Television
Manufac¬
of
Canada, St. Adele
-

losses

economic

scale,

states,

among
nations.
On

regions

and

COMMODITIES
BIC

PROFITS?
Write
and

for

particulars

Sample

Issue

POTATOES

STOCK SCIENCE
de:pt.

144

Beacon

are

which

game

first

came

just

haven't

Let

summarize

with

just

two

the

effects

the United States

figures.

Over

the

ouick-mindeclness, the

ity

and

the

raw

sagac¬

courage

our

fiscal

agencies.

they have in

economists,

decade

by no less

—

which is Electronic Auto¬

Oliver

Evans

built

programming

involved

Perhaps

adds

for

point: out that the
"automation"
has
been
loosely used in the electronics in-r
dustry for anything connected with
printed wiring boards, whether or
not parts have been assembled to
the boards by automatic machin¬
ery, by single step machines, or
by the classic "Armstrong method"
—the fingers of a skilled human
operator.

exemplifies -mechaniza¬
tion—once started up it continues

capacitor

sections,

wound
with
a
uniform,
prede¬
termined number of turns. But, it
does not correct for
capacitance

changes resulting from fluctua¬
tions in such things as paper thick¬
ness and
paper density. In the fu¬
of

feedback

controls

—

if we hope to reach
of true automation, the
step must be mechanized as¬
sembly. After such mechanization,

first

sens¬

feedback
duced
the

control
correct

cause

of the

tractive

can

intro¬

variables

the

process.

however,

produce units with great uniform¬

ity of capacitance value within

Certainly,

the goal

thus

and

automation—which utilize

Mechanized Assembly First
:

hope for the introduction

others

manv

I might also

term

our

forth

.as

sacrificing the versatility so neces¬
in short-run production. l j *

machine

spew

will

flatten

amazed
out

past —but

you

how

see

weeks

they

months

and

by.

As is known, the varying
fortunes of a single enterprise do
not

greatly affect an industry as a
whole,
nor
does
a
significant
movement

single

greatly

industrial

affect

the

total

of all industries.
The longer the
time period studied, and the more
factors included in an index, the

slowly the trend changes.

Yp«. the next decade will

infinite

tions,

number

dips

and

see

minor

gains,

varia¬

within

the

national economic pictures of Can¬

and

United

the

States.

revolutionary,
allowed

for

most
in

barring

assume

plans

Canada and

general

the United

continuation

na+mnal

trends

means

respects things

bigger.

I think

we may
dacade
both

for the next,

T^is

major war,

broad

them

anticipated

the

the alert and far-sighted.
that

Al¬

of these changes may

some

States,
of

the

last

that in

many

certain to get
Indeed, thev will have to.
are

And I also belieyp that if
care

you

and
as

exer¬

vigilance, things
me

with

opti¬

ingenuity

principal

used, only

probability of

reduction

be¬

at¬

Jobor

costs,

recent

mechanization,

being

experiences of large clec-

the

and

factors

United

are

gen¬

which

States

are

much the

have

same

vigorously

the United States these boom fac¬

included:

•

gov¬

very

small

From

tolerance.

this

brief

description

.-Continued

page

impressive—hut the

known, yet I won¬
fully understood just

much

Canada

neighbor

has

below

Let

distanced

the

interna¬

HOW TO

give you a few
comparative figures for the eco¬
nomic growth of our respective
me

countries from 1947 through 1956.
In

the Mast
10
years,
United
States population increased 17%—
Canada's grew by 28%, or more

than 50% faster.
of

come

The national in¬

our

people rose by 74%—
Canada's shot up by 109%. In the
United
States,
average
weekly
earnings in manufacturing rose by
60%, while Canadian earnings shot
by 89%. Our exports increased
32%, and Canada's 73%. We man¬
up

aged to beat the Canadian increase
the manufacturing

production

index, but the margin
slim.

relatively
of

22%

index,

turbed

its

our

truly

economic

heavier,

vehicle

the

certainly longer,
more horsepower

Canada.

traveling

passengers than
But
obviously

job

has

great deal faster.

pvesumntuous for

try to describe to Canadians the

reasons

nomic

for

speculating is the quickest

Canada's

success.

sum—and

small risk.

American

hi':

suui

among

reckless

in "an

the

fact

way

this

No need, for example, to
stocks,

(heave

unknown

make

can

lie

huy

done

out

surpr'singly

hut l-irae, well-known

anv

"cats

w'th

and

dogs"

those who

afford the risks.)

practice,

signal

eco¬

They know their

sensible

speculator

"conservative" investor.
the odds

astonishing

highly-streamlined

your

been

packs

carries
of

Yet

modest

well he

States is

"dirty" word

consumer

performance.
The

used

often

too

gambling—of the double-or-nothing variety.

rise

speculate lias unfortunately beeqiuo

investors—largely because it is

to be

price
large gains,
be equally undis¬
the 39% increase in

our

against

over

face

Tin- word

can

undisturbed

Canada ^may
the

pretty

was

And if we're entitled

It would be

spurred the Canadian economy. In

tors

its

tional line.

that

familiar because, with certain ex¬

ceptions, these

how

other

and

well

are

created and nourished the 10-year
in

der

and
am

eral goodwill of mankind.

The

this

United

mism, I will concede that I

intelligence,

All

fore's

can

well.

charge

;

cient

his side

For

can

speculator.

may

example,

take fewer chances than
man

he spreads h's risk

who le ts always with

hardly lie called reckless—though lie

So long

number of "bets," this man's chances of

among

coming

out

may

suffi¬
top

approach absolute certainty.
To

show

ments—to

you

how this

make

revealing

principle

can

he anp'.ijd

steady, low-taxed capital gainsnew

Principlesplus the

-we

your

invest¬

will gladly send

48-page book, "Stock Market Annl-vs
next

3 weeks of regular service.

I acts &

4 his includes

strength ratings of 500 stocks, together with spcci'ic buy, hold

sell recommendations.

own

strengths better than I do:
They include discovery and ener¬
getic development of vast new nat¬
ural

resources'

electric

huge

installations;

new

Send SI, together with your name

and address,

(.l'-101.

hydro¬

enormous

capital outlays, .which in 1956 ac¬
counted for 22% of gross national

AMERICAN INVESTORS SERVICE
;

.product compared with only 15-%

sary

will .empha¬

paper

in the form of

and this has proven to be a good
bit more costly to achieve without

capacitors,
industry have,
believe, done similar work. This
others

industry,

our

size the point. My company de¬
veloped its own automatic rolling
machines

the

whose products are discrete, autor
mation involves numerical control

example drawn from

continuous

that

deals largely
flow
processes

stream, and hence readily subject
to tK •> *iv!og tvpe of control. In

process.

Automation

remember

industry

whose output is

feed¬

nor

the

experience

own

ture,

for

systems

control,

must

with

en¬

trol.

advanced

chemical

mechanization, in varying degrees,
programming and feedback con¬

automa¬

dustry has necessarily been lag¬
gard with respect to automation,
but

Philadelphia. But there

Electronic

and

not mean to imply by this
statement that the balance of in¬

tirely mechanized flour mill just

industry is

field

mechanisms.

Replacing the man with the ma¬
chine is not, in itself, automation
but mechanization. This
goes back
for many years. For as
early as

•

rates;

feedback

^«F»do
Automation

back

blending of
different materials, and product
separation, using feedback con¬
trols,
programming and
servo-

mation.

1784,

the

temperature

than

Revolutions

production

absence

The chemical

relatively

economy would be
stimulated during

Technological

using

compo¬

Canadian story is much more im¬
pressive.
The why's and where¬

the

Ave., Jersey City, N. J.

Canadian and U. S. A. Growth

monetary,

factors which
*

our

ernmental

boom

COTTON

WOOL

where

balsis,

day-to-day

SOY BEANS

SUGAR

econ¬

the chart lines, of economic
.in¬
dexes will fluctuate vigorously, as

believer in the over-all, long-run

RYE

FOR

position

and power
among individual firms
and
industries, and on a lesser

INTERESTED

COFFEE

OIL

of this boom

the next

over

16
one

the

and

tion; the petroleum refining field
in
particular is now employing

well known

our

leader in

huge gain, the consumer price in¬ ing of the change in capacitance
dex rose only 22%
during that to automatically adjust and cor¬
period.
These facts seem to me rect the number of
turfflT^and thus
ample and eloquent testimony to the overlapping dielectric area) to

cise

RUBBER

wading

here to stay and

are

pa"1 or

group

offerer! arid purchased in the mar¬
ket place.
There will be gains

decade.

EGGS

will find many

situation, both the hen and

ggg

high

but

10 years from 1947 to
1956, total
income of all persons in the United
States increased 74%.
Despite this

ada

WHEAT

ONIONS

the

nents,

decade, there will be many shifts
of interest, emphasis and leader¬
ship among the goods rand services

be better

OATS

and

economic

our

will admit that

and

both

Electronics

CORN

nature

extension of yesterday.

though

Association

Canada,

you

eagerly

early past. Tomorrow is main¬

out

go from here?"

address
-

Barring major

our

Which brings us to the
of

exact

will have been broadly

entitled to

good!"

bearings for the next leg of

performance,

opportunity

landmarks

Without^being

—

journey.

seem

though
omists

al¬

—

time for.

It also gives

the instrument panels,

the

measurement

we must, reckon with. De¬

share this

Responsibility

State

governments

achieve the

tax

sound

$364,000 annually August 1, 1958 to 1972,

guaranteed unconditionally as to payment<of prhtcipal*dnd*dkfidtnds
^
by Seaboard Air Line Railroad Company

severe
areas-

problems,
that

but

have

(Accrued dividends to be added)

1958

observed:

4.15%

1959

not exceed

1960-72

4.35%

■

what it

earns

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this-announcement is circulatedfrorn only
such of the undersigned and other dealers as may lawfully offer these securities in sucu State.

through

The

production.
(2) The nation's private invest¬
ment

must, be

broadly restricted
available, and its
public investment chiefly to whatr
it is willing to pay for through

the

HALSEY, -STUART A CO. Inc.

savings

taxes.

DICK

MERLE-SMITH

prudent in their spending choices
demand is not to press

if aggregate

up<5n" ; lit#"" riatldn's

•

;•

relatives losses of population have tthdtily

4.25% |

Issuance and sale

;

(1) The nation's spending must

bases

even
suffered

by -endorsement

MATURITIES AND YIF.LDS

BAXTER A COMPANY

FREEMAN ^COMPANY

R.^PRESSPRICH &. CO.

McMASTER HUTCH INSONA CO.

those

inclusive

that end, certain rules need to be

growth

population movement have

To be

dollar

the

mature

responsibility, and will

aggravated the problems of some
(3) Governments—State, local,
governmental, units.
Those with and Federal—as well as private
abnormal :gains have faced the citizens
must
be
selective
and

rpost
.•

to • keep the

Equipment Trust Certificates

...

The Shared

increased

Both, population

;

■

inflation.

(First installment of. a total issue .df $16,350,000)

Seaboard Air Line Railroad

and

not

;

comr

explains the policy of monetary
restraint pursued by the Federal
Reserve since mid-1955, directed
toward, restraining
an
incipient

automatically with the growth of
the economy, and it has proved

j difficult

■

$5,460,000

only
the

cannot be in \
conflict with social needs; it is es¬
sential for human progress. This

money

required more
only certain

have

McM ASTER HUTCH I .WiON 4, CO.

would have ballooned

you

more.

from

taxes

& CO.

serious

dollar isprotected. Otherwise their

expenditures of State
local governments have risen

PRESSPRICH

Consequently, the 98%
budget which most con¬

Communities
if

Current

kinds

precision, of course, but 1 am con¬
fident that bv now we would have

•expenditures to outrun income.

MERLE-SMITH

Jfclt 12,1957

gains they desire only
is kept stable by
monetary and fiscal poli¬
cies, combined with prudence by
those who make spending deci¬
sions. The continued progress of
lems of financing new projects be¬
our society and its growth in wellcause it has to do with 98% of
being thus depend upon the fi¬
your total budgets. I refer to the
nancial health of the nation. To
tendency during recent times for

and have

INC.

The threat to their ef¬
fectiveness
is
deep-seated
and
insidious.
It is
definitely more
significant than the current prob¬

Returns

by Interstate Cow/un-r ■Cnmmisuan,

•

FREEMAN & COMPANY

•represent.

taxes.

•

DICK &

•

money

new

4.85

Offering Circular may be obtained in any State in which this announcement is circulde I from only
such of the undersigned and other dealers as mpy lawfully offer these securities in such State.
"
I'-'-. '
'
T. '
" V
" * ./■ ■

HALSEY, STUART & CO.

in to* Hie
econotay.>cannot be calculaterfwith

greatly

these Certificates are subject to authorization

Issuance and sale of

is to

answer

shudder to think

outcome.;

4 75%

Perhaps

money

February 1959

August 1959-72

■

had

AND YIELDS

4.50

August 1958

of events if the Federal

course

pumping

Now I turn, to the possible plight
of J the: governmental
units" you

and

of par value and dividends by endorsement by

4.00%

February 1958

Has the

vain?

would

desired them.

essentials has stripped
"frills" from some projects.

•

as to payment

Minneapolis, St. Fan I & San It Ste. Marie Railroad Company

ask

supply, but
had continued to give banks addi¬
tional
reserves
whenever
they

other purpose. A growing aware¬
ness of the need to restrict expen¬

;

$58,000 semi-annually February t, 1958 to August I, 1972, incbidve

unconditionally

gone

might

policy.

persuasive

pansion of the

findings of earlier studies that
governmental units of tc-

ditures

To nritiirc

receipts
years will

tax
20

what

Reserve

free of

of interest

small
;

been

most

still

the

interest

suggest

that

they needed.

occurred

to- the

able

out

Reserve Monetary

imous

were

(Philadelphia Plan)

sub¬

about the effectiveness of Federal

cerns

limitations

paid

substantially,

were unan¬

effect

In fact,

Since prices have already
up

but the reports
were

Equipment Trust Certificates

capi¬

share of the debt service

the

course,

borrowers

William

Korea.

markets, finance

large volume of municipal needs.
To

improvements.

over

officers have been able to finance
a

47M

reflect the inflation of costs since

ments, and by timing security flo¬
tations

with

Staats & Co.

Equipment Trust, Scries D

embodied in the debt that has

are

investor

meet

to m^rly

was

al¬

These higher costs

bad to be incurred to finance

120

Railroad

•

highway

and

issues
when
they
were
brought to market again. A survey
made by the Investment Bankers

same

Croweli, Weedon & Co., 650 South
Spring Street, members of the
Pacific Coast Stock Exchange. He

The cost of

have

the

ANGELES, Calif. — Ray¬
Brandt is now with

A. H.

Minneapolis, St. Paul & Sault Ste. Marie

govern-

estate

moderate,

little

LOS
mond

obvious.

conditions

taken

Croweli, Weedon

Average wage payment per em¬

ments,

WM. E. POLLOCK

ref f *

juiyn,1957.;

A CO., INC.

SHEARSON, HAM MILL A CO.

■

New

If' The.Fjnancial Chronicle)

$1,740,000

indicate.

The

attention,

much

has

be¬

With

was

than the

figures

be¬

lie-Flotations

Allen

their

other fa¬

and

far less

been

dollar

...

postponements

market

highways,

ployee ui rocai ana

Postponements and

cause

year

schools,

cilities has

office, 2 Wall Street.
He
formerly Vice-President of
Aubrey G. Lanston & Co., Inc.

monetary

level

with

York

—

policy,
the formerly with Barclay Investment
problems, it would appear consumerprice index has just Company.?.1
«■ -:
that we are making substantial
as Figure V indi¬
moved up again; without restraint,
cates, almost all of the decline was progress in meeting our needs for the rise would
undoubtedly have
With Harris, Upham
in
long-term financing for toll schools, highways, and other com¬ been much
greater. This continued
ioads
and
.tsut correct me
(Special tc The Financial Chronicle)
public housing.
You munity cuviCcs.
rise emphasizes why the loss of
will
recognize
that
influences increase for rising prices, and the that battle would mean much to
STOCKTON, Calif. — Francis J.
other
than
interest
cost
The the
helped picture is vastly different.
proverbial widows, pensioners, Banchio is now with Harris, Up¬
in Figure VI.
deflate the earlier enthusiasm for contrast is shown
and others whose compensation is ham & Co., 25 North Sutter. St.
In
other words,
toll road projects. In the financing
the number of
of public housing, the decline in dollars spent has increased
sub¬
bond flotations was offset by an
stantially, but the rCaP gain in

finance

strict.ive

Robert

was

Casimir M.
Wojcicki has become associated
with Link, Gorman, Peck & Co.,
CHICAGO,

that

associated

now

(Special to The Financial Chronicle)

battle—the

gainst inflation. The Fed¬

Reserve

center

officers

finance

mic'st

Link, Gorman Adds

Ameri¬

other

with

municipal

cans,
are

nounced

common

Robf. Allen Joins

this

secured

G.N.P.)

(i.e.,

fixed.

everything

governments and private citi¬

zens

Facts

In boom times,

procession are those, like
governmental units, whose

that

recently remained unchanged.
maintaining their competi¬

special dif¬

own

Financial

but

continued

experienced their
ficulties.

(281)

and Financial Chronicle

The Commercial

Thursday, July 18, 1957

(202)

account the demand upon the new

Tapping

Growth Potential

To Assure Business

establish broad growth targets to measure output performance,
personal progress and income growth, and to improve efficiency of labor utilization. Perceiving a manufacturing longterm growth four times faster than available labor man-hours,
Mr. Rucker finds this means industry must obtain three-fourths

perhaps 15 to 29 years in the fu¬

mends

extending incentive

include conservation of

etc.

power,

labor-capital shortages, aid
employee morale, and permit the average firm to double its
dollar value of production in 11-12 years.
Believes this should

help

overcome

in
the

past

decade.

written
said

the

both

see

here

and

force

year

fission,

from
from

subordinates,

automation;

nates

what

everyone

including both direct and indirect
plant labor.
"

of vari-

"growth

o u s

industries"

The

Allen W. Rucker

"growth

and

firms."
you,

a concrete target and an ob¬
jective for your own firm's growth

able man-hours

you

your* own

advancement?

Where should you
20

from now?

years

Without

specific

quite

some

lieve

and

productivity improvement to our
business
future
cannot fully be
appreciated. Let me pin this down
a little more specifically.
If your firm grows and expands
the average long-term rate for

industry,
it
should double its size and its out¬
manufacturing

all

This is be¬

put in 18 to 20 years.

of labor.

Sees Little Labor Growth

This

that,

means

industry

age,

definite goals, I be¬
that the full significance of

figures

tinue

has

the

in its

total

improvement in

the efficiency of
utilization, in brief, by an
improvement in productivity per
labor

man-hour. We

can

than one-fourth of

put

the

expect

future

than

industrial

national

total

increase

the

Over the past

the

output.

40 years, the growth

from

come

Improvement in tech¬
productivity per man-

nological

the

going

are

need

now,

make

ital

the

output.

part

the moment, the
of industry will foe
shared seven-eighths among firms
already in existence and about
one-eighth with new firms. This
tendency toward the growth of

that

existing firms rather than of new
firms
has enormously favorable

Seemingly,

future growth

influence

upon

and

advancement

Target
If

want

Objectives

Growth

especially
the

rate of

add

the

physical growth the longprice advances. When

term rate of
that

should

done,
double

its

dollar

value

production, its Production
in

years

from

years

about 40%
With

now

from
you

Value,
five

now;

should

above today's level.

due

inherent

firm

average

differences

among

indi¬

vidual-industry grwth rates, these
will give you at least a

figures
broad

target

Sixth
The

address

for

future

Annual

accom¬

Rucker

by Mr. Rucker before

the

Conference

Executives

Plan,

Philadelphia, Pa.

Between

basis

for

team¬

subordinates

job

down

the

critically
ability to

think

and

now

1965,

the

of your firm may be al¬

progress

Let
so,

dependent
meet this
tell

you

upon

why

then tell you what

and

readily do to supplement
leadership.

Back during the 1930's our na¬
tional birth-rate fell to its lowest

levels in
til

history.

1942-1945

began

join

that

not un¬
birth rate

was

the

accelerate.

of those and
not

The

babies

subsequent years will

the

until

labor-force

and it will be at

least 1965 to 1970 before the ranks
of labor
a

will

begin to

rate comparable with

increase

population

growth.
Even

ter

then

that

have

space

ment
over

all

box fasteners,

ployees will be required for initial

operations at the new plant.

except that in the next five years
8

and

perhaps 12% of our potential manhours will be definitely non-pro¬
ductive but paid ,hours.
It well

have

Some, firms

already reached that position.
All of the foregoing means,
the

in terms of man-

that

summary,
hours

job

cannot

ex¬

pect to increase our employment
in manufacturing an average rate
of

than

1.0%

possibly, for

yearly, and I

have

take

into

long

rate

live.

Nonetheless, if we are to capital¬
ize

the

bling
within

years,

Production

dollar
within

and

Value

(output

years,

our

must

at foui times the rate of the
in employment mail-hours.

grow

gain
I

over-emphasize
this
its critical chal¬

cannot

basic

fact,

and

lenge to your business leadership
and

Corporation

Air Force competition

of
a
crash-*
from 7 othef*

development

helicopter

rescue

companies.

competing

ex¬

pected that deliveries of the new
rotary wing aircraft,
known as

HOK-1, wil begin in 1958.
The
plane carries a rescue crew of
three in addition to the pilot.

SAN

Calif. —
appointed

FRANCISCO,

Bruce A. Bales has been

Northern

the

Representative

Field

Danforth

Company,

of
315

Montgomery Street, Western Dis¬
tributor

Fund, Inc.
experienced se¬
formerly as¬
sociated with the Spokane office
of
J. A.
Hogle & Co. and the
Portland office of Zilka, Smither
Mr.

Wellington

Bales is

curities

over

with

located

man.

was

Inc.

(Special IoThe Financial Chronicle)

LOS

staff of Eastman Dillon, Union Se¬

ings must be set back at least 35
streets and a minimum
buildings

and

streets

front

attractive

and

streets

will

storage

open

Joins First California
(Special to Tut Financial Chronicle)

un¬

LOS

permitted.
"

new

addition

the

lion

Joins

present

work.

7,000

the

SACRAMENTO, Calif.
Germain

has

are

was

Company

present

rison.

plant.

joined

the

—

Jay C.

staff

Tenth St.
formerly with The Curran

Reynolds

plumbing

and

Approximately
employed

now

Reynolds Staff

(Special to The Financial Chron.cle)

was

electrical

for

Cali¬

with Fewel & Co.

constructed in
1953 will cost about $3.5 million,
not including an additional mil¬
which

Rector

.647 South Spring
Mr. Pandzic was formerly

Street.

has commenced construction of an

plant

Calif.—Harold

Edgar

fornia Company,

Sikorsky Aircraft Division
United
Aircraft
Corporation

The

and

have joined the staff of First

The
of

ANGELES,

Pandzic

J.
if

formerly with J. Logan &

was

Co.

which

they face must be planted and
landscaped. No shipping facilities
with

Blvd.

curities & Co., 3115 Wilshire
He

between

ANGELES, Calif. —
G. Cover has joined the

Leonard

feet from

areas

With Eastman Dillon

Ex¬

trial utilization of land. All build¬

dealers

investment

Inc.

and has been designed
an
attractive indus¬

two-thirds

distribution,

Oregon, Washington, Idaho, Utah
and Montana, of Wellington Fund,

promote

responsible

general

through

half-mile of frontage

will

Bales

the

some¬

Hartford-Springfield

the

pressway

Products,

Metal

park

Mr.
for

opportunity for dou¬ addition to its helicopter plant in
size of our businesses the Oronoque district of Stratford.

'<
Aircraft

won an

for

plant has recently been

new

what

10 years in
future, perhaps for longer and

the

the plant will

& Co., Inc.
A

The

Co.,

and

919

Richard

Har¬
~

■

managerial ability.

Herein

lies

true

the

Dempsey-Tegeler Adds

Light

Electric

Hartford

The

Productivity

Improving Labor

Company has applied to the Con¬

meaning

and

significance of improving em¬
ployee productivity.
Your busi¬
ness growth and youi^ own future

for

sion

million

permission
of

(Special to The Financial Chronicle)

Commis¬

Public Utilities

necticut

LONG

$15
Deben¬

sell

Thirty-Year

than

The

clearly

executives

this

see

destined to become to¬
front-rank leaders apd

are

morrow's

firms

the

who

fortunate

'enough

1957

bank

before.

ever

tures,

Series.

loans

which

aggregate

closing

date

connection

$9
on

are

the

with

Calif.—John E.
to the staff

Dempsey-Tegeler & Co., Farm¬

ers

Merchants

Bank

Building.

With H. L. Jamieson
(Special to The Financial Chronicle)

estimated

OAKLAND,

the
15 and in
Company's

million- by

Aug.

BEACH,

Usher has been added

The proposed
advancement depend
bonds will have a coupon rate of
upon
your
ability to bring about improved, 5% and will be placed privately.
productivity at a far faster rate Proceeds will be used to repay

Calif.—Valerie

Mulligan is now with H. L. Jamieson Co., Inc., 1419 Broadway.
•

have such executives will become

tomorrow's leaders of their indus¬
tries.
In

order

goals,
I believe we shall have vastly to
expand the "incentive potential"
in
are

our

businesses.

useful

individual-worker

many

-...

to achieve these

in¬

Primary Markets in

i CHAS.W.SCRANTON&CO.
I

Members New York Stock

Exchange

CONNECTICUT
1

New Haven

centive plans, the fact is that their

limited

coverage

not

than

hourly-rated
and

direct

labor

assur¬

shall be greatly bet¬

off, at least in manufacturing

industry.

has

IBM machines and

the company's

Whitehead

probably not too much to say

more.

•'

Kaman

will be used to house all of

space

It is

direct
no

nation for

million

about $25

completed and in operation in

1959'"

137,500 square feet of floor
and together with equip¬
represents an investment of
$2 million.
The additional

tains

time limit of 2,080 hours per year.

estimated

holidays reduce the opened in the 36 acre Windsor In¬
The
new
34.100
employee per year dustrial Park.
by another two, three or more square; foot plant will be used as
office
and
warehouse
by
percent, from the legal straight- an

may

The cost of the initial unit

and it is hoped that

paid

between

150,000 kilo¬

100,000 kilowatts to
watts.

ping factory, located in New Brit¬
The one-storv building con¬

weeks reduce the
work hours 6%. Six, eight, 10 or

chal¬

can

ance

*An

understanding

lowest-rated

about 1963-1965,

allowance for certain

the

plant.

you

our

throughout the plant. That
I have said that future

your

need

of
on

will depend heavily upon
the cooperation of fellow-workers,

growth prospect in terms of dol¬
we

,why

lar

sales,

work.

the

cap¬

and

prospects

labor,

lenge.

this

express

added

posed steam generating station at
Manresa
Island, Norwalk, from

three

4%;

progress

your
,

indeed

worker,

understanding

becomes

work

per

growth

most

income.

most

methods

the

future

business and

your

personal

your

future

need

need,

great increase in

investment

rate in the total volume of

number

cooperation of labor in order

of .better

the

vacation

yearly man-hours on the job

cuts

unit of its pro¬

of the initial

size

Company
steel strap¬

has dedicated its new

than that for eight to

employees;
threeand
maybe more must

manufacturing
establishments has averaged only
about one-eighth of the
growth

from

come

weeks

four

even

two-week

fourths

rate

suspect it will be at a lesser

no more

added out¬

our

become

have

additional

manufacturing estab¬
lishments is at an infinitely slow¬
number

con¬

output by an

hour.

the

aver¬

must

and

three-fourths of the

get

increase

total

increase

the

cause

growth

three

vacation.

Works

Stanley

The

Company has revised upwards the

production facilities for seals,
and hand and pow¬
them a
er strapping tools.
It is estimated
growing percentage of employees that about
100
additional
em¬
vacations

somewhere

be five, 10 and

and

The Connecticut Light & Power

man-hours per

simply

quite

long-term

manufacturing
output
in
this
country is almost four times as
last a rate as the growth in avail¬

however, translated
all this into figures that will give
Have

-is

reason

the

stated:

year.

ain.

almost universal, and with

with

especially subordi¬
in the shop.
I mean from
is generaly termed "labor,",

electronics and

aware

man-hours worked per
the employees we have.
comparatively short time,

two-week

This,

goal their own goal.
cooperation will be needed
superiors and equals, and

bilities of nti-,

growth

the
by

With

to win the coperation of
fellow-workers in making

your

are

upon

largely through

ability
your

possi¬

clear

th§> state has insince 1950; and

estimated to

$12,164,000 for the 1957

amount to

Fully

it.

future

the growth of the labor
growing
restrictions

tions upon

and their progress,

everyone

in the next few years.

objec¬

countries, executives will
have really to earn their laurels

fully conscious

meet

can

output will be dependent upon
how well we meet that challenge

other

course

who

Concurrently with these restric¬

growth
industry.

construciton program

15%

each of the past five years in ef¬
it, we shall more and fective buying income per family.
more
urgently need to win the The state average effective buying
understanding,
the
cooperation income per family, that is the
and the teamwork of the employ¬ amount
left
for spending
after
ees
we have.
At no time in our
payment of Federal income taxes,
national history has this challenge was
$7,035 in 1955 against the
to executive
leadership been so nationwide average of $5,465.
great, nor the rewards so high for

tives.

future

And

these

achieve

order

ef¬

upon

obstacles that must be surmounted

and

of its

fect

growth during
Much has been

population

our

leased

Connecticut has led the

Challenge

This

Meet

three-fourth

executive

the

acceleration

Must

those

They will also set up
challenge and lead
examination of some of the

plishment.

Everyone is doubtless fully con¬
scious ol' the marked

...

As I see

and to

materials, supplies,

raw

recom¬

to cover all labor

programs

population

ture.

the author

the state's income,

and relating to

production and growth. Among
socially healthy but technologi¬ the interesting figures -included
cally imperative. But in the mean¬ therein are: the per capita income
time, industry must expect a con¬ of $2,499 is 35% above the na¬
average
of
$1,847;
the
tinued "labor-shortage" for 10 and tional

from additional
To achieve greater labor cooperation in order to

employees.

then to
This is not only

technical schools.

man-hour productivity with the

make the most of added capital investment,

years

school and to college and

remaining one-fourth of added output to come
I

published an

steadily

manufacturers to

of its total output by improving

Commission recently

of education — a analysis titled "Connecticut Mar¬
declining percentage of ket Data." The book contains a
young
people enter the "labor variety of information relating to
favorable
location
force" at the legal limit, age 16. Connecticut's
in relation to the nation's markets,
Instead, they are going on to high

tended

leading management consultant advises

Development

Connecticut

The

into account the ex¬

have to take

Cambridge, Mass.

the service industries.

and

Progress

President, The Eddy-Rueker-Nickels Co.,
A

Connecticut Brevities

ernment, both for military as well
as for administrative man-power,

By ALLEN W. RUCKER*

supply of all forms of gov¬

labor

30%

plant

nearly
are

rule

60%

labor.
if

not

excluded.

of all

Much
in¬

all

Man¬

agement, therefore, loses the gains

Continued

page

| SECURITIES |

New

York —REctor

Hartford

—

JAckson

2-9377

7-2669

Teletype NH 194

Volume

136

Number

5656

Commercial and Financial Chronicle

The

added

Coal Faces

Challenge

impetus

succeeding

in the

years;

This
this

By L. NEWTON THOMAS*

brings

to the theme of

diseussion—that

challenge

faces

coal

President, Carbon Fuel Co., Charleston, W. Va.

been in progress to overcome

Castigating

Federal

policies for having assigned Coal to

by favoring competitive oil and n&tttiral gas,
producers' head calls fcr more equitable treatment by

revising percentage depletion structure upward and the elimina¬
tion of transportation tax

ice to the

and

Mr. Thcmas

supply and motive

coal to help maintain

attacks

bottleneck caused

car

ued

reiterates recommendations made

power;

by Presidential Advisory Committee

World War II, the coal

industry began to be looked
sick

upon

dying industry. After
meeting the immense problem of
powering the
a

national
effort

♦

were

short

coal

be-

mo r e

This view

prices

the

•

the

for

not

and

tirely realistic

the

What

widely

1 nomas

ivew.on

by the
public gener¬
ally. Evtm some members of the
industry and officials of some of
the
coal-carrying
railroads and
other industries gave it added im¬
petus.

its in¬
ception from the rapid changes
in the fuels economy evidenced by
the almost explosive expansion of
largely

transmission
its

natural

gas,

utilization in

consequent

heating and industrial
raising.
In addition, the

rapid acceleration
of
excessive
imports of crude petroleum and
residual oil played a substantial
part. Further, the rapid invasion
of the two competitive lueis into
two
of
coal's
principal historic
markets, railroad locomotive fuel
and domestic space
heating, re¬
duced substantially the consump¬
tion of coal.
The

rapid rise of requirements
generation of elec¬
tric power did. not evidence itself

be used

in steel

same

somewhat

and

other

less

and

chemical

cement,

plants. Incidentally, it
said

now

which future

ticipated,

those

growth

constitute

may

markets,

can

an¬

than

four-fifths of the total market for
coal.

Few

target
\

industries

publicity.
der

such

have

much

uneven

the

been

unfavorable

Few have labored
economic

odds,

the way).

Productivity

Growth

With declining markets, lower¬
ing production (631 million tons
in

1947; 392 million tons in 1954),
advancing wages and freight rates,
coal was in a triple squeeze. While
was

going

on,

those

the

the nation's

—which, in

turn,

said

cannot

basis.
At the mines, by making
huge investments in machines and
plants, changing operating meth¬
ods, training men in the new pro¬
by Mr. Thomas

before

the

Anniversary Convention, National
Washington, D. C.

Cinderella
the

denced

the

family

sisters

favored

evi¬

government's policies
contributed to consigning
by

which
to

the

up"

"mop

job

standby fuel in times of stress.
Wants

Equitable

impressing

competitive sisters are fav¬
a more realistic percent¬
age depletion allowance. They are
not
alone
in
this
advantageous
by

Practically

position.

industry

every

receives

treatment

zinc

executive
of

branches

the

Congress

coal

vital

government

ceived

watchdogs

support. Most of our largest
industries have proven so con¬
clusively that progress and earn¬
ings are so closely related to the

nished

ammunition

valuable

and

uphill fight.
Prospect Ahead

for

Coal

The result is

today the industry
faces the future with greater con¬
fidence than for many

There is

years.

lubricants
A

and

large part of the

both

business.
these
tion

other

metal

must

the

men

some instances, are more
than half the delivered cost of the

;! Means

,for

grow.

the

need

the

competi¬

it.

about

get

need

mathematics

and

science

hun¬

than

one-

found

halt

in¬

new

in transportation rates over
one

While coal's

almost before
latter.

productive capacity

increased by a reasonable

within

percentage

short time, a serious
the

continuity

sonable

training,

vocational

of piling

preceding

can

high

facblty and students.
more

Existing Bottleneck

seriously

across

multiplied

the ink is dry on the

more men

story

our

school

train

must

pattern

crease

our

engineering
than
they are enrolling.
One trouble
is not enough of us are tellinghigh school boys and their teach¬
can

and

third.

Our

keen.

colleges

the

respectfully
bottleneck in

supply at

rea¬

prices is the lack of adeContinued

in high

page

ex¬

resThis is

not

or an offer to buy, or a solicitation of an
of such shares. The offering is made only by the prospectus.

offering of these shares for sale,

buy,

any

offer

mines,

clay

receive
an

industries

Most

same

essential

dreds of instances

success

attract

men

which, in
product

operating procedures

better

cost

adequate sup¬
ply at economic prices. This may
be directed to transportation costs

others.

many

and

175,000 Shares

upward

Oxford Paper

Company

Common Stock

help

delivered

maintenance of

this

types

Coal

mands

better understanding

forms,
including,
of
high Btu gas, liquid fuels,

maintain a reasonable
price to the consumer.
Coal must improve its market¬
ing methods in order to establish
and maintain a fair price for its
product for the! purpose of de¬
veloping a capital reserve with
which to increase present produc¬
tive
capacity as the rising de¬

assistance unceasingly in this long

with

research in production and prep¬
aration equipment and new uses
for the product, both in raw and

ton. This tax should be eliminated
to

industry
must
continue
greater emphasis its efforts
impress the right people in the
proper places that a reasonable

a larger per¬
centage of the sales dollar will be
spent for that purpose in'the future
than has even been spent in the
past.
There must be intensified

course,

The

research dollar that

Again, natural gas and imported
have
no
transportation tax

fur¬

and

industry has re¬
adequate finan¬

our

than

comparable to coal's four cent per

dedicated, alert and hard-work¬
staff at NCA headquarters

part of the over-all pro¬
the industry must continue
to promote safety by education of
the production personnel into the
vital necessity for and benefits
derived from better safety prac¬
tices as well as new and improved
safety devices of all kinds. There
is no more important phase of our
mining operations.

cial

ing

less

oil

economy.

our

gram,

automation.

and

—

Research

revision of its depletion structure.

fuel and the industry as

segment

all

equitable treatment by

and

importance

the

certain

stone.

administrative

and

nation, the

the

officials are greater in our indus¬
try than in most of the others.

advanced

This points up two important jobs
ahead
research
and
education.

The

beneficial

use

mechanization

ers

Depletion

Allowance

ored

engi¬
neering principles, technical skills
and
the
rapid improvement in

termined leaders and hard-work¬ aspect, including bauxite, fluorspar,
ing committees of NCA gave un¬ graphite, lead, manganese, nickel,

($15 Par Value)

Price $38.25 per

continue

fuel energy
Considering

the

fact

that it requires $10-$ 12 per annual

and

ton of

Washington of coal's problems
importance.
Textbooks, en¬
cyclopedias and all kinds of refer¬
ence
publications have
been
brought up to date to show coal's
technological progress. The pub¬
lic and press are better informed
of progress in the industry and
the services it performs.
Now

this

picture is
to

not

so rosy

ig to rest

say

capacity to build and equip
mine, that old mines
working out must be replaced and
increased capacity created,
it is
a

that the

these fine

college

age,

are

unaware

ac¬

tions

will

remain

constantly ag¬
gressive in this endeavor.
The
task begun several years ago will
be continued and, I am sure,

given

That

influ¬
position in

60%
or
more of the cost of production.
(3) That
each successive im¬
(2)

wages

are

provement in methods of produc¬
tion

reduce

proper

rive,

source

such

costs

The

from which ^ to de¬

employee benefits.

new

BCI

program

principles

into

fuel-burning establish¬
constantly with

working

Smith, Rarney & Co,

Lee

Hornblower & Weeks
F. S. Moseley & Co.

Higginson Corporation

Paine, Webber, Jackson & Curtis
A. C. Allyn and Company

Wertheim & Co.

Dean Witter & Co.

Estabrook & Co.

Ilallgarten & Co.

Incorporated

Schwabacher & Co.

Tucker, Anthony & R. L. Day

Rail, Rurge & Kraus
■

A. M. Kidder & Co., Inc.

G. ILWalker & Co,

Goodbody & Co,

■

McDonald & Company

Ilanrahan&Co.Jnc.

play

expanding and upgrading coal's
industrial, commercial and retail
markets.
NCA's engineering staff
has done an excellent job in gov¬
ments,

Hemphill, Noyes & Co.

Ilayden, Stone & Co.

Rache & Co.

ernment

Lynch, Pierce, Fenner & Reane

is mak¬

ing great strides in bringing sound

engineering

Kidder, Peabody & Co.

Incorporated

Merrill

part, the funds, required

stated above and
necessarily to be wholly dedi¬

cated
-

Ilarriman Ripley & Co.

for the purposes

not

Glore, Forgan & Co.

■

•

economy

coal's

greatly

prices

the marketplace.

our na¬

likely will it ever be, completely
accomplished although the indus¬
try, NCA and allied coal associa¬

delivered

competitive fuels
ence

made,

nor

Rlyth & Co., Inc.
:

That

(1)

working in it, and and tre¬

job is not yet,

only in states in which such underwriters are qualified to act as
legally be distributed.

dealers in securities and in which the prospectus may

The industry employee, whether

nize:

opportunities and challenge in our
industry.
Many people are still
uninformed of its importance to
our economic life, the progressive

The

writers

management or labor, must recog¬

the

tion's progress, unassisted by gov¬

Copies of the prospectus may be obtained from any of the several under¬

that a huge amount of
capital must be generated in the
near
future.
Only healthy earn¬
ings which bring a reasonable re¬
turn on present and prospective
investment can accomplish this.

that ail we have

modern

apparent

complishments and watch orders
and profits come in.
Far from it.
We will still see slumps in
our
markets. We are having one now.
Our competitors are still aggres¬
sively working in the markets.
Large segments of the public, par¬
ticularly those of high school and

ernment.

*An address

the

selfishly of their time and talents

make

trained

Coal recognizes that it has been

tractive

dustry

stable

future, peaceful uses

of the nation.

ue-

«uu

energy,
have
their, and research will be determined
place in the fuels economy by
the
number
of
technically

The

forwaru-tiiiiiKlng

compete adequately
with oil and gas, it must continue

atomic

ciation during those trying years.

in both war and peace,

Coal Association,

for

courageous
and
farsighted
leadership of executives of the
industry and National Coal Asso¬

mendous contribution it has

40th

the

proper

economy

the

men

and

date

off, not only in personal earnings
but in quick notice from the top

If coal is to

converted

changed the

substantial extent.

much

Too

industry with faith in its future
planning
the
ways
and
of meeting these problems
and working hard to get the in¬
sound

and

successful contravention coal's im¬

portance to

means

now

years,

posibilities of ingenuity, resource¬
fulness and aggressiveness paying

Engineering

Practices

indefinite and unforeseeable

some

coal

were

oil,

teens

recognizes that competitive
fuels, oil and gas, and possibly at

industry to the realization of the
facts—demonstrating beyond

un¬

depressed markets, higher costs,
declining prices.
Few have had
their problems so completely dis¬
regarded by government (even to
the point of casting obstacles in

this

has

true

coal for certain general industrial
uses

what

and

Coal

thought.

and

measured

now

gas,

life

reserve

dustry.

might
sig¬
the requirements of

with

nificance

sud

its

make

The

appearance.

said

and

the

responsibility to itself and to the
nation in meeting the challenge.
The industry has the responsi¬
bility to maintain a continuity of
supply at fair and reasonable
prices to the consumer with a fair
and reasonable profit to the in¬

fuels

immediately, nor did the increase
in the requirements of coking coal
den

needed

was

served

for coal in the

public

industry

that of coal, measured in milleniums.
Coal
has
a
tremendous

partially done over the past
decade is the awakening ol' the
public and certain elements of the

had

both space
steam

the

psychology to
view

That

the

bad

poor

were

been

held

with

coal's

the" facts

en¬

and factual. It
was

state,

semi-

mass

concerning

never

one

factual

some

was

physical

psy¬

•

there

some

chological

present,

today lower than

are

1948.

eight

wages

1947' to

hysteria

largely

other

; of

industry.

advancing

from

background

was

advances

that

doubled

;

While

widespread.

cooperation

the

decades,

measured

productivity were realized.. Dur¬
ing the 1947-55 period national
productivity rates in .bituminous

times

supply,

c a m e

amazing

labor,

*; After

very

with the

and

American

fuels

view

mines

when

othe

this

war

cedures

two

demands intensified research and engineer recruitment.
Prior to

contrast

index

Energy Supplies ; and

this

generation by its
call for greatly
.increased energy.
Its importance
will
be
emphasized
more
and
more in the future by the contin¬

reasonable

response

Proud of coal's economic contribution

consumer.

future,

twice

Urges Advanced

the

obstacles, both physical and psy¬
chological, that still exist.
Coal's importance to
the na¬
tion's economy has been proven

"Cinderella role"
coal

the
military, Veterans Adminis¬ schools. We have a very diligent
tration, Government Services Ad¬ committee doing this work but
ministration, Post Office Depart-- here is where we can all get into
ment, and many others.
act.
I am satisfied that the
^
. the

continue with em¬
phasis the effort that is and has

President, National Coal Association

(283)

II. M.

Payson & Co.

July 17, 1957.

■/

Stillman, Maynard & Co.

Stroud & Company
Incorporated

The Commercial and Financial Chronicle
16

ally. In the first five months
of this year the number of
shares outstanding was
trimmed by 30,000. The road
is also something of a candi¬

THE MARKET... AND YOU
STREETE

By WALLACE

for

date

back

Although

the industrial
worked to within ing

average
about

quarter point of its

record

the

over

some

1955

was

peak

was as

responsible

recently passed and signed Con¬
gressional housing bill be put into immediate effect. Views
such

step as essential to the economy's well being and the

public interest.

George C. Johnson, President of

Eveif at'times when
the
to

plane shares

some

slide

Gloom

trying

were

Continental Can, whose

rally, others in the group

continued

for

Reason

into

new

chairman had forecast

de¬

be put into ef-

feet

Motors Reach New

Highs

Motors worked

higher for a
change, Chrysler and General
Motors both pushing to new
peaks for the year. But it was
laborious going for them, too.
The perennial skyrocket,
Superior Oil of California,
raced to the $2,000 level on a
few

fat

gains that added up
price appreciation of more

the

nual dividend which offers

yield of around 4G
prices.

at recent

show

outfit that

new

full

its

present restrictions on use of
its earnings. This could free

yet

mettle

with

dollar quarterly,

possibility of a yearand, in time, a

end

extra

Ad¬

m m e

d i

t ely

effectuate
1 i b eralized

down-pa

permitted in
the

bill

insured

gages

necessary

the

that

mort¬

FHA

"are

thousands

home-buyers

prospective

avail themselves of the

may

terms

new

they have been awaiting."
He

also

that

declared

down-payments ior homes

"low

are

de¬

cidedly not inflationary."
Telegraphs

Presidential

Mr. Johnson's

action

levels

ti'ative

hower's

Advisors

request for prompt

governmental

adminis-

contained

was

to President Eisen¬

advisors

and

Federal

of¬

ficials, including: Sherman Adams,
Assistant
to
the
President; Dr.
Gabriel

Hauge,

Administrative

fuel oils seemed to call for

Director

appraisal and the

new

and

backing and fill¬

into

settled

group

lion

sales

year

and

ing that left the field

open

for

group leader to emerge
the second half of the

new

for

year.

than

com

met ion

Sobering,

Revlon

stock,

the

ran

easily when

sizable

drug

firm's

of steam

out

gave

both

Revlon

started when

took

bundle

share. This would

round

and

rather

profit-taking

any

cated

has

and

has

been

hove

The

carving out
half dozeh

General Tire

was

Rails
a

narrowly,

a. range

points

that

use

stainless

steel offers better than
on

4M>G

recently increased pay¬
T h e
indicated $1.60

its

ment.

$3.50.'

of a
far.

mere

didn't

have

the

Council

the

Economic

Treasury;

Secretary

Percival
of

the

McChesney

Brundage,

Martin,

Pittsburgh Steel is a com¬

with a bleak history
starting to achieve
something of a rebirth. Noth¬
ing sensational is expected of
Pittsburgh which still has
is

relocations

some

im¬

and

stand¬

$400 asked this week.
Even

sive

the

somewhat

interest

the

are

Two

high-

energy fuel field was calmed
down a bit by crmral market

irregularity and Olin Mathieson,
can

Attractive

yield at recent prices.

Denver

Pont,

Rio

Grande

time

after

man

Mason,

/
For

Nation's Interest

the

"There is

ered

home
a

building

families

incomes

age

have

with

been

aver¬

squeezed

out of the market because of

initial

payments required.

unemployment

has

shock

because

months

recent

thousands

industry

economic

severe

high

Spotty

appeared

several

industries which
supply
building materials ar.d equipment,
and

there

growing unemploy¬

ment in the construction trades.

"Low
down-payments
would
remedy this situation to a consid¬
erable

degree.

of families

when

the

is small.
are

Greater

numbers

able to buy homes

are

required
This

initial

means

produced,

equity
homes

is a basic
economic fact that production is
one of the most powerful weapons
which

can

and

infla¬

against

used

tion."

CORRECTION
Some

the

"Chronicle"

tently

copies
of
the
11 inadver¬
the wrong pic¬

July

contained

ture in

connection with the

testi-

FHA

Commis¬

Johnson

Mr.

for

said

lower

that

dation of the

its

provi¬

down-payments
recommen¬

Administration," and

added:

"Surely
the

broaden

ership

anything
base

is7 desirable,
of

cause

the

that

will

home

own¬

not

benefits

be¬

people

homes, but also
continued support of the building
industry is essential to the wellbeing of our economy in which

wanting

the

buy

Federal

Dr. Walter W. Heller

Walter E. nelier

only

Housing Adminis¬

given

mony

Walter

10 of

page

Dr.

Professor

Heller,

Economics, University of Minne¬
sota,
before the Sub-committee
on
Fiscal Policy, Joint Economic
Committee,
Washington,
D.
C.
The

error

was

corrected

before

the press run had

Here

are

been completed.
Dr. Heller's picture, also

that of W. E.
Walter

Heller. President of

Heller

Co., Chicago,

which latter had appeared in part
of the

edition.—EDITOR.

Glenn

Hinton Opens

SEATTLE,

Wash.

—

Glenn

Hinton is engaging in a securities

tration and Veterans' Administra¬

this

necessarily at any
with those of the

tion

home

loan

programs

from

their
of

inceptions, has made a total
58,576 such home mortgages.

gram

offices

from

business

Forty-Seventh, N. E.

7338

He was for¬

merly with Foster & Marshall.

Some of these

bracket

'other

and,

unlike

the

They are presented
those of the author only.]

Form Mutual Inv. Serv.
FOREST HILLS, N. Y.—Daniel
J.

rities

rather tractive—the
own

at¬

Schatz

engaging in

business

from

secu¬

offices

reac¬

stock occasion¬

During the 23 years of
such participation, we have had
to take back only 247 of the homes
so
financed, or 4/10ths of 1% of
the total.
This certainly is con¬
clusive evidence that the average
American

64-85 Wetherole Street under the

company

were

undgr the VA pro¬
made with NO down

payment.

carriers, has not been

protracted correction, worked quires its

coincide

eco¬

In
urging
prompt
action
on
rhaking the housing bill effective,

"Chronicle."

Grande has another facet that

not

expressed

public

sioner.

Western is in the better-than-

is sometimes culled out

article

U. S. Borax and Ameri¬ reporting declined in revenues
Potash went in for mun¬ or net operating income. Rio

dane market life.

views

[The

Rails

exces¬

warranted

Cole, Housing and Home Finance
Agency Administrator, and Nor¬

found in this group.

effective,

the

Chairman,

psychological barrier
of a provements that will impair
out in its
group but not be¬ record peak to contend with
this industry is such a vital ele¬
operations a bit. But since
cause
of any great industry were able to
shrug off the in¬ comparisons cover the steel ment."
expectations in the tire line. dustrial seesawing and even, strike
No Inflation From Good
period of last year,
It was more in
Credit Risks
response to at
times, show modest
earnings should show up well
To support his contention that
some
spirited soaring by its strength in the face of selling for this
year and in time the
low( initial payments for homes
subsidiary, Aeroiet General, elsewhere. The long neglect
$1 cash and 4% stock pay¬ are not inflationary, Mr. Johnson's
in the count0**
market. The that fell on this division is
ments could be readjusted to telegrams stated:
latter, available » week or so
"The
largely the reason why some a higher cash basis. The cash
Dime
Savings Bank of
ago at around $300, reached
of the better yields available
Brooklyn, during its participation
payment represents 312 r/<
,

Federal Reserve Board; Albert M.

pany

that

William

Budget;

action

nomic conditions.

Advisors;

Humphrey,

W.
Randolph
Undersecretary of
the

Burgess,

sions

President; Ray¬
Saulnier,
Chairman,1

mond

the

"closely resemble the

:J:

A Standout

wider

$34-35 book value

moved

appeared.

ward

$2 indi¬ payout is well covered by
which offers earnings expected to approach

dividend

around its

the

over

yield of around 5.7 %

stock

this

possibility of
earnings of better

twice

for

the

cover

Th°
and

showing

potential

the' broad trend to¬

thick

Assistant

be made

can

and

during
low¬

that

asserted

Treasury;

printing equipment
supplies with a $60 mil¬

interest

The

payments

Crucible Steel which is in the

such

suffered

July 12.
banker

initial

maker of

that

Eisenhower

George

ized terms

was

signed

The

FHA-insured

the FHA Commissioner must find

President

George C. Johnson

Corp., put higher quarterly rate.
together late last month out
Oils
High Yields on Steel Stocks
generally were the of
Harris-Seybold and Interstalwarts for the first half of
Steel shares, too, offer some
type Corp. On a pro-forma
the year. But
of the highef* yields around,
ome price un¬
basis the merged company is
easiness that cropped up in
about
the
most
diversified running between 4 and 5%.
Harris-Intertype

down-payments

no question that low¬
down-payments are in the
public interest and would
by strengthen the nation's economy.

legislation.

The

explained:

mortgages. This pro vision is mere¬
ly permissive, however. It is not
mandatory. Before these liberal¬

formula

ment

dividend telegrams sent

current

The

rate is half

has

the

-additional moneys for
road.

Strong Potential

than $300

in several days of
trading. It is the first $2,000
tag seen in some 30 years.

ered

Eventually B. & O. is aim¬
would
be
made
up
if the
ing at cleaning up about $25
promising second half lives up
million
in its
own
income
to expectations.
Despite the
bonds either through the deslight dip in earnings, the
b e n t u r e exchange offering
$1.68 reported for the first
that
runs
until early next
half goes most of the way
month, or otherwise to lift
toward covering the $1.80 an¬

Federal

ministration

company

prospects that this

and

Housing

$135 million reduction in the

with

"prompt¬
that

ly"

away

a.-

Brooklyn

"As
passed by Congress, the
housing bill permits sharply lower

down.

cline in profit for the first
ground for the year and
last five years trimming some
half of this year, issued its re¬
helped snuff out the rallying
$6 million from interest
port and the "decline" came
attempts by the more buoyant
charges.
'
'
to only
nine cents a share
items.
if
if
\

low

the

lyn, N. Y., urged that the housing
bill passed recently by Congress

has hacked
mightily at its debt
structure in recent years, the
The

officials,

banker

perhaps at the rate of
$4 annually if a 5% freight
rate increase is handed

Federal

The Dime Savings Bank of Brook¬

$200 which is almost double with
has been

not infla¬

are

and Federal officials urging

by results for the

anything for chilling enthusi¬ the level at which it
asm and
stalling the advance. hovering recently.

Homes

tionary, George C. Johnson telegraphs top Presidential advisors

aircrafts

Down-Payments

Contending lowered down-payments for homes

Thursday, July 18, 1957

Brooklyn Banker Urges Prompt Action

On Lowered

increase

nearly $250.
Baltimore & Ohio is also in
Also in the laggard category,
position where dividend lib¬
proved to be a tough chore against the performances in erality would be justified
with plenty df stock available previous years, is Coca-Cola
eventually. Last year the
which sold higher in every
as it approached the historic
company boosted earnings
peak.
single year in the last decade more than $2 to $10.85 and in¬
❖
#'
#
than it has this year including
come for this year is projected
Persistent easiness in the its 1946 bull market peak of
at around $11 on present rates

high of 1956, getting
through the congestions

Prominent

annual requirement

covered

highs for this first five months.
if
if
bit short of its

new

but still

year

$200 line, post¬

dividend

its

since

(204)

firm

name

Service.

of Mutual

Investment

family is

good credit

risk."
In

fication

statement issued in ampli¬
of

his

telegrams

the

Form

Lamula Investors

John Lamula Investors, Inc. has
been

formed

William

to engage

Officers

with

Street,

are

offices

New

York

130

City,

securities business.

John Lamula, Presi¬

dent; Benjamin G. Hanych, Vice-

President; and Antc'^ette Braune,
Secretary-Treasurer

Number 5656

186

Volume

The Commercial and Financial Chronicle

(285)

Public

Factors to Consider in

Utility Securities

Buying Canadian Bargains

By OWEN ELY

By ROGER W. BABSON

Baltimore Gas & Electric Company

Ordinary investors

Baltimore Gas & Electric

can perhaps lay claim to-being the
utility company in America, since the country's first gas
company was founded in Baltimore in 1816, and the first electric

company

in that city

company

was

later

organized in 1881.

was

formed by

smaller

utilities

mining stocks.
real

outlying areas, as well as the
steam-heating business in downtown Baltimore, were acquired.
The company now serves the metropolitan area and surrounding
sections aggregating 2,283 square miles, with a population
of
1,675,000, about 60% of the state's total number.
years

terials

area

and

served is well located with respect to markets, ma¬

experienced

and

1956.

Ship

arrivals

reached

their

getting so many inquiries
regarding cheap stocks listed on
the

change
have
to

and

other

attracts

enterprises

Excellent trunk-line rail facilities

locate

the

gains for the period 1950-70 of 33% to 102% for the five counties
served (22% for Baltimore County alone).
In the past five years
Baltimore G. & E.'s
of nearly 10%

have increased

revenues

compound rate

o c

1956 electricity accounted for 70% of the company's rev¬
natural gas 29%, and steam 1%. The breakdown of electric
revenues was 34%
residential, 31% commercial, 34% industrial,

miscellaneous.

other

residential

Last

sales

the

accounted

division,

gas

for 70%

househeating

and

revenues.

bein°"

Canada

the company generated 73% of its electric output
and purchased 27% mainly from its affiliate, Safe Harbor Water
Power Company.
The company has five steam plants with a

capacity of 956,000 kw and Safe Harbor has 400.000 kw hydro
capacity on the Susquehanna River. Last year the company joined
with
several other utilities in Pennsylvania, New Jersey
and
Maryland to form a 10 million kw power pool.
expenditures

are

esthnated

$233

million for

the period

1957-61—representing a 50%' expansion—of which $40
be spent this year.
The program includes a second
kw generating unit at the Wagner Station, expected to
will

million

125,000

be ready early in 1959.

of April 30, 1957, was as follows:

Millions

Mortgage debt
Preferred

Percent

—

170

$371

Common stock

100

-—

equity (6.937,480 shares)

Total

ferred

company's bonds

stock

A*-'

rated Aaa by Moody and the pre¬
Standard -& Poor's. Dividends have been
are

paid continuously since 1910, have

never

been reduced and have

always been earned.

Different

which

safest

are

the

larger

These

basis

and

American

selling

are

oils

less controlled

should

compa¬

fair

have

even

greater

growth; but they should
bought for income rather than
for speculation. There is no ques¬
be

but that there

tion

lot of

Western

wells

are

tion

good

markets.

pipe lines takes time and
The

will

wells

produce

not

much

build

until

.these

also

but

these

pipe lines.

Oil

and

pipe
There

can

be put in bar¬

transported

by truck;
but natural gas is absolutely de¬
pendent on pipe lines or else upon

expensive compression.

very

most

popular

investments

metal-mining companies,
including gold, copper, zinc, lead,
uranium, and even the rare met-

are

Most

these

stocks

not

represent producing proper-

ties,

although

Earned

Dividends
Declared

High

Low

producers

$1.60

refineries.

the

some

building

are

There

$2.32

1955-——

118

2.16

1.55

many

107

1.95

1.40

than

1953

1.74

1.40

some

1952

1.81

1.40

this.

But

1951

1.69

1.40

them

1950

1.86

1.35

nary

1949

1.64

1.20

1948

1.50

1.20

1947

1.64

1.20

surely win; but which

non-

mills

that

are now

dollar

probably
selling for less

revenues

estimated $732,000

year.

this time.

For

the ordi-

investor to buy them at
a good deal like betting

horse

Some horses will

race.

one

justments for changes in the cost of fuel or of purchased gas.
The company

year offered additional shares on
share, proceeds approximating $18 mil¬
has been selling recently around 34
(range this year about 36-32) and the dividend rate, raised to
$1.80 this year, affords a yield of 5.3%.
Share earnings for the
a

1-for-ll

lion.

The

months

in March this

basis at $31
common

ended

stock

March

were

$2.30

based

the

increased

shares, and using this figure the price-earnings ratio
would be 14.8.
For the five months ended May 31, 1957 the bal¬
ance
earned for common stock showed a gain of 12% over last
number

year.

Kentucky Co.

Joins Continental Sees.
(Special

(Special to The Financial Chronicle)

Ky. — Lucy
E.
Laib and Lucien C. Whitaker have
LOUISVILLE,

joined the staff of The Kentucky
Company, 320 South Fifth Street.
Miss Laib was
L. Lyons

previously with W.

& Co.

tg The Financial Chronicle)

GRAND

land

RAPIDS,

Frederick

Mich. —Ro¬

has joined the

distance

important.

very

the
is

important;

much

earth

before

Tables, $1

is,

ore

re¬

tion

out.
The diamond drilling
gjve ^he figUres on this. The
main
thing to keep in mind is:
Buy reserves or ore and study the
price you are paying for these re¬
and

imagine that

metal

the

instance,

are

you

metals.

for

how much
ton

Investors
to

who

really
money.

prices.
tons

take

the

times

under

metal,

their

only

are

ground

Sweden

the

and

amount is being
reduced every day.
I really be¬
lieve that $12,000 invested proper¬
ly in Canadian Oils and Metals,

will, \at

period

during the
next 30 years, be worth a million
dollars! Such an investment, however, requires much care in the
selection and supervision of the
companies.
some

Mo.

Joseph

—,

Petersen, Jr., has become
ated

with

Joseph G.

Co.,

Inc.,

1811

sum¬

Kidder

Publishing

—

Affairs

Public

Press, Washington, D. C.—$2.50.
Talking

Turkey

pamphlet

—

Pictorial

present day Turkey

■—Turkish Information Office, 444
East 52nd Street, New York 22,
N.

Y.—paper.

TechnJcal Cooperation ^eportjm
how
United
States, and more
than 50 nations of the free world

combining their skills and
—
Office of Public

are

knowledge

Reports, International Coopera¬
tion

Administration,

ton

Washing¬

25, D. C.

U.S. A. in New Dimensions: The
Measure and Promise of Amer¬
Resources

Macmillan

Fifth

—

Thomas

Avenue,

Midwest

Company,
New York

—

60
11,

Y.—(Paper)—$1.50.

Yardsticks for Human Relations
Training

Stock

Registered Repre¬

—

Irving R. Weschler,

Tannenbaum, and John

Robert

Broadway,

an¬

as a

associ-

Petersen

South

the

—

Reinhold

—

Abrahamsen

Exchange,

China:
—

Sweden's Foreign Policy—Samuel

The

Jos. G. Peterson Co.

members

America,

Carskadon and George Soule

Joins Staff of

LOUIS,

Corporation, New York, N. Y.—
$10.

ica's

ST.

Builds

Smith

many
every

Annual

Chiang Kaishek—Farrar, Straus & Cudahy,
101 Fifth Avenue, New York 3,
N. Y.—(Cloth)—$5.

present
so

Russia

ming-up

should

There

50th

Association

Soviet

trouble

be able to make a lot of
Sometime in the next 30

several

Paying

the

Avenue, New York
22, N. Y.—(Paper).

paving

are

information

this

get

you

of coal.

125,

488 Madison

coal company, instead of figuring
too much on the price of the stock,

fjrnu'0

Associa¬

ciation of America—Life Insur¬
ance

For

studying

are

Annual

63rd

Bankers

Meeting of Life Insurance Asso¬

copper

other

—

Convention—Pennsylvania

Proceedings

merely

buying

you

merchant
of

one

the

Association, Box
Harrisburg, Pa.—$3.50.

stock/market

Forget the

serves.

Bankers

can

1956

Division

—

copy)

per

Pennsylvania

that

Stores in

McNair

Proceedings

"over¬

must

the

Results of Department

Research,- Harvard Business
School, Soldiers Field, Boston
63, Mass.—(Paper)—$5.
(Sup¬
plementary Expense Center

Then,

amount

Co.,
Inc.,
(Paper) —

—

con-

from

Bete

Mass.

Specialty

Malcolm

!ined ?nd the metal transported
f° market. Each step is expensive,
but

Between

Price

and

Zenger—University of Cali¬

fornia, Los Angeles 24, Calif.—
paper.

He has been with Hill Brothers

Registered Representative for

as a

Even if

mining stock is selling
cheap, that is. below a dollar per

the

share'
out

yet

how

Shaskan Adds

that

The

are

out¬

ment.

here

the

number

standing.

course,

of shares should

the

price to

see

be multiplied by

what the mine

The

the

important

investor

whether

iron,

ore

Halkos

Va.

conducting

Leon

securities

business from offices at 141 South

determined

diamond

drilling.

Liberty Street,
members of the
New York Stock Exchange.

was

formerly

FT. WORTH,
Lee

and

Texas

Frank

—

Stephen

New

have

Loicano

Lae with offices in the Con~

securities business.

York

Co., 55

City,

F. M. De Saoio Opens
WEST LONG

Fred M.

BRANCH, N. J.—

DeSapio, Jr. is conduct.

tinental Life Building to engage ing
in

Howard

Loicano

formed the partnership of

well

broker will tell you approximate-

Horowitz,

Broeck

the

honest

Herman> gamuel A

Form Loicano & Lee

and

pretty

Vanden Broeck Adds

Kenneth j

King & Johnson.

Street.

with Dewey,

reserves,

lead,

Emil C. Kroner and
Rubel have become
affiliated with Alfred L. Vanden

13th

for

zinc,
whatever the

copper,

nickel,

thing

know

real

amount

Halkos Opens

HOPEWELL,

probably the best buys.

most

uranium,

L. G.

out¬

the number

of the New York Stock

Exchange.

con¬

the prospect is selling for. Certain
stocks which now pay 110 divi¬
are

Exchange Place, New York City,
members

tell

buyers look

only at the prices and do not
sider

years,

following his Marine Corps enlist- sociated with Shaskan & Co., 40

shares
the

and one-half

Staff

find

brokers
of

most

past two

Philip M. Zrike, Jr. and James
F. Coughlin, Jr., have become as-

first

should

one

many

standing.

can

ing.

Operating

other factors to

Greenfield,

Reserves

staff of Continental Securities Co.,

Inc., Peoples National Bank Build¬

are

such

—

sentative.
Relation

dends

Two With

Press,

15c.

Maritime

Scriptographic
"self-taxing" plan—

Channing

rough esti-

railroad> a navigable river, or
even. highways Before a metal
Fan
marketed, the ore must be
brought to the surface and re-

sell for many times
only experts can pick

day

This would be

equhl to about 5 cents a share. A favorable regulatory factor is
that all tariffs now contain clauses providing for automatic ad¬

There

sider,

which will

other matter.

reduce

secure

Want

booklet

are

this year the company made various readjustments

net effect of which would be to

You

the

price

random is

March

the

0ther Factors to Consider

fields of natural
also are awaiting

large

$132

and

reserves

money.

allowed

lines have been constructed.

rels

oil

Canada;
but most
waiting foi tiansporta-

Per Share

its electric and gas rates, the

information

divide

taken

and

Alfred

—

Cambridge, Md.—$7.

which the mine is selling by the

how

in-

producing

1954

this

can

moved

...

the

Revenues

now

Canadian

probably

(Millions)

195 &

over

now

Yearly Price Range

With

investor

course,

Kinds

„

The

vestment

als.

Following is the company's record in the past decade:

earth.

Forwarding

percentage'of" ore"to"a" torTof Uo™ to Save Money for What

the

burden"

The

premium of 5%

that

American dollar.

gas;

$172

—

stock

by
in-

Canadian

dollar
worth

are

Capitalization

the

Roger W. Babson

sent

American

nies.

year

Construction

innnpv

Infor¬

Rockefeller

Management

Murr—Cornell

should know

one

per ton for the ore.

Investments

reserves.

knowing the quantity

of the reserves,

Plaza, New York 20, N. Y.

mate of the price that he is paying

muph

per annum.

enues,

and

in-

some

Service,

Traffic

addition to

Publications

list—British

Export-Import

ly the amount of the

fnThes^cheap

available.

showing excellent growth, its population
having increased 40% faster than the national average since 1950.
The Maryland State Planning Commission has forecast population

mation

and

area.

area

Toronto

vestors

service

Government

—Monthly

quiries. There

revenue.

The

British

certainly

Consequently, an
unusually broad diversity of industry is found in this area. There
are about 2,000 manufacturing establishments in the area served,
with every major group of the Standard Industrial Classification
represented, and now accounts for over 3% of the company's
are

Ex-

that

come

make

world,

Toronto

Stock

nearby, and local industries provide steel, stainless
steel, copper, chemicals, and many other products.
Bethlehem
Steel Company's Sparrows Point plant is one of the largest in
the

price. Believes metal

purchase price.

Coal

par¬

per ton

limited and that future demand will drive
carefully
selected and supervised Canadian oils and metals far above

all-time high of 5,735, up 83% from 1946. In each year of the last
decade the port has ranked second in the country in foreign trade

tonnage.

ahead of stock market

reserve

logical distribution center, and

banner year in

excellent terminal, port

Baltimore's

manpower.

transportation facilities make it

ore

place price

reserves are

The

The noted financial analyst suggests, in

ticular, not to buy at random and

In 1906 the present

of Baltimore utilities and

merger

advised by Mr. Babson on what factors
purchasing inexpensive Canadian oil and

are

consider before

oldest

securities business from of—
fices at 105 Hollywood Avenue.
a

Financial Chronicle

The Commercial and

Thursday, July 18, 1957

(286)

Fundamental Role of Business

come

within

country mile of

Is to

sibility of profitable operations and protection of owner's
capital. Successful enterprise, Dr. Doan avers, permits business to attract investors and to meet its social responsibilities,
including its primary joint economic and social responsibility

)

"facts of life" including our tax structures

nowadays

difficult

sort of industrial gather-

into any

to go about your routine tasks for a couple of days,
ing,

or even

without
count

en-

sion

man¬

cial

responsi¬
bility" — or
"corporate cit¬
izenship"— or

operation of
"in

business

public in¬

terest."

All of

these terms,

same

Leland

Doan

busi¬

behavior—and

ness

and complex area

broad, vague
it is.
a

Industry people talk about it,
magazines write about it, educa¬
tors make surveys of it, and even
college students send question¬
naires about it. In fact we had one

from

don't

few days ago.
this

think

particularly
into

administration

business

major just

the

that

new

business

anything

crept

has

the

scene.

quite obvious that
very widely
"public be damned" at-

has

from the

that

titude

swung

characterized

some—

not all—businessmen two or. three

generations ago. Actually, we seem
to have become

with

the

quite preoccupied

"social

responsibilities"

of corporations and the men who
manage them.
Now I would

be the last

one

quarrel with this. I think business

role of leadership out¬
day-to-day conduct of
business matters.
And

maintain

get

that

has

been

mind

good.

Some

from

the things we produce,
complexity and financial
a large corporate organization it is easy to let things

J0''
,,st°c^oWei's
profit t.iat ha\e leany particular pro¬

from

practice. But
pretty firm conviction
gram

of these

efit

things

sooner

to our ben¬

accrue

later

have a
that most

and

directly

indirectly.

This

however,

little bit in

opic and allow the
an

end

to be-

means

itself.

learned, sometimes the hard

have
way,

that business, if it is to be suceessouMiiess, 11 u
10 oe successT„^T

uiai

ful

n,ie,nOCC

and

,T,T,,TntMio_

enduring, must

oper-

Some

industries, I think, have
well in recognizing cost
before

aluminum

I am inclined to believe that the chemical

framework it is.
kid

pretty

But

ourselves

and

we
are

interest

per se.
•An
85th

and

his in¬

vestment.
Points to Research

•

is the key.
And it must be supported from
earnings.
We can continue re¬
Research, of

course,

his

directors

and

most

very

happy with the situation and

were

for most

of the physical progress

civilization-has made.

our

tnmrvnvovtr

dmnn

millions

It pours

and

address by Dr. Doan before the
Meeting
of
the
Manufacturing
Association,
White
Sulphur

had

legal right

it but, in effect,

recovering

hav°

business

Since

enduring

not

could

done

...

quite

with

bit

so.

ultimately bought out
business.
And
as

the

original

thing

you

and lives in a changing
it seems to me we are, know, we've been putting money
into research ever since.
going to have to take a more real¬
What would have happened if
istic look at our tax structures and
economy

depreciation

practices

and

appropriate adjustments to
it

and

make

needs

tal

have

for

future

are

growth

and

been

new

venture capi¬

declining

decline

the

and

the

going to have to look for other

means

of supporting the economic

use

capital and earnings?

there
snot

would

the

fruits

ex¬

also

pretty

suspect
vacant

the

man
up in Midland.
Certainly there would
be 27,000 Dbw employees, and
on

not

tably must

sure

claim

sole

discoveries.

basic

thing—that

one

atomic- energy,

the

"atomic
out

contributions

science

and

have

industry

not gloomy, but neither is it es¬ would not have been made.
Then someone else would have
pecially bright. Perhaos some of

exploration.
I

all

with

has

industry will do it

sure

other

the

major

developments of the past.
We, of all countries in the world,

Michigan.

made

outlook

but

back,

money

such

The

cannot
the

Tor

But

vistas of potentiality.

age," ' whatever it turns
be, will be brought about
Herbert Dow had been like the
only through industrial managerest of them—if he had not been ment
pouring heaven-knows-howprogressive and far-sighted in his many millions into this new area

growth which the country inevihave.

new

Industry
credit

pect they would have gotten their

thev

assure

industry the capital

searching

you

capital.

That is

funda¬

mental that I suppose we scarcely
think about it. We can say, "Well,

naturally if

read

record

statement

be," he said, "no
galloping inflation, no runaway
prices, no frenzy of sDeculation,
and no great collapse. Rather, our

known for our progress.

are

there

suppose

it.

But

some

are

any

And

number

which contribute to

influences

slaspect it boils down to

combination

make a profit it
saying that the origi¬ world will be one in which marcapital is being protected." kets will be large and expanding,
I wonder if it is.
;
in
which
technology
will
be
we

made

them,

naturally

tal

and

Purely

aside

from

the

profit

changing rapidly, in which

corn-

petition will be extremely keen
a
right to expect that when he* and profits fairly modest
a
places his money with us, he is world in whic^* bondholders will
doing something better with it fare rather badly, in which the
investor has

tha11

lar

profit

though he simnly Placed proportion of the national product

vay]t
am

burjed it in

going

that then

depreciate

fail

have let hi" dol-

iust

though

had been buried.
...

•

ployees.

that

con-

our

managers

responsibility tc

|be

our power to see
stockholder's slice does

Springs, W. Va.

controversy about the fact that the reality, the survival of capitalism

ness,
We have seen much of this

attitude

some

European industry.
obsolescence
clined

and

avoid

type
of

segments

They deplore

thev

are

in¬

by simply not

anything new.
Thev
do business "comfortably

developing
like to
j

thtn «nlit-

markets
tions.

and

Each

anocrfliroducthereby

assured

profitable operation, but none has
any
particular incentive to improcess

and

talk

and
find

about

social
new

corporate
conscious¬

avenues -

demonstrating them, I would like
us to keep firmly in mind that in
the final analysis we can serve
the

public interest only if

adhere

our

basic

first

economic

re¬

sponsibilities.
The desire to live right is laud-

ab e' but to make U meaPingfui
we musl also have llie ability.
Form Great Northern Inv.

attitudes,

EAST

ORANGE, N. J.

—

Great

Northern Investors Associates has

petitive situation
These

product because

it is not onerating in a truly com¬

this

failure

responsibility for prog¬
probably is a maior reason

citizenship

Progressiveness

been

formed with

offices

North Harrison St. to engage in' a
securities business.

not become t1"inner.
He has a ress.
right to expect this from us and,' much of Europe has laeeed behind Jay H. Stoffer and Ivan E. Fine,
if vou want to face verv cold us technically and industrially.- both of whom were previously

troversial/4ubiPct.

Therr

been possible only because it has
profitable.

been

Criticizes Foreign Non-

prove

think

do all that is in
^hat

This gets into the matter of de-

preciation .practices.

con-

most

business it is

epreciation Practices

will

tinue to drop slowly, and in which
of the gains of increasing
to productivity will be to the em-

thinking that he should
to protect it in terms of
power.

stockholders

of its responsibility.

motive I believe the

Can.

return

the

the extent

goes without

But

But not

you may say.

Chemists'

The Dow Chemical Company

which

great

that have opened;,

the atom

about

The outgrowth of that companv
was

cents.

doing.

pioneering spirit and the dictates
if all business management was of our unusually competitive sysNow, a second responsibility of
Now> a second responsibility of-this by Sumner Slichter. I would content with the status quo and tern of operation. These are the
like to quote just a part of it:
management is protection of the
considered the protection of ^api- stimulae.
But the means? It has
owner's
"There will

soul

hope

that

operating for the public

large

has

purchasing

became

glass and

paper,

examples.

are

lic

And

they

Steel, oil,

expect

never

Kaoh

Incentives for

done very

ated within the framework of pub¬
interest.

recover

ended

extremely thin.

that it

always possible.^) become my¬

come

have had an
Sometimes

progress.

nal

preoccupation,

disturbs

to the fact that the ice has become

well

hotrn

business

follow,

suited

inflationary economy.

nately we can get along quite
nicely for quite a while, several
years perhaps, before waking up

industry

hardly be reduced to
accounting. We would be hard put

And unfortu-

get out of balance.

the things we do, the policies we
can

proper

the

acute.

question in

our true
another, to
balance be-

way or

strength of

pressures

many, many years we

'tween Our costs and the return we

ordinary
is

long-range return

direct respon-

recognizing

and, one

side of the

there

the

one

standing that

realistic
costs

management was long overdue in

assuming

implications.
adds to the

millions of dollars
it has
been slowly inflationary,
wanted it just the way it' was
sibility to carry out that function sometimes rapidly. Occasionally
into the development of new prod¬
fhey could see, 1 suppose, where
"
^
just as ably as we possibly can; there have been
ucts, better ways of doing things,
temporary down¬ it would take
only a few years to
Our social responsibilities are part
with the profits from already suc¬
turns.
But over the long pull it
recover
their investment with a
of the package, but they are in¬
cessful products picking up the
has been inflationary, and in like
direct.
Unless they are properly
jjcsQ'thy bundle of profit and that
decree
check until, ultimately,- the new
degree the purchasing power of ^ ^
the purchasing power of
th£y
interested in.
evaluated in terms of -our basic the dollar has dwindled.
product is able to stand on its own
They definitely had no interest in
function, they become a sort of
feet and return its
o\v^ profit. ; , .
Secondly, corporate business research or in adding any other
hitchhiker. The main point is this;
tends to be perpetual in nature'.
Many, of course, never do pay j
products to the line. The boat was
Only so long as we do a good job
We do not make an investment,
sailing smoothly and they didn't off, but the net result of the sys- ,
in meeting our economic respon¬
recover
tcm
it with
whatever profit want
improves
our
civilization,
anyone rocking it.
sibilities are we going to be able
benefits everyone — the owners,
we can contrive and then fold
up
But Herbert Dow was a bofh
to discharge our social responsi¬
the
pur tent.
employees,
the
consumers.
By and large, the cor¬ boat rocker.
He
bilities. Any activity labeled "so¬
couldn't- abide
None
of
the
poration goesjQn decade after dec¬
things which we
cial responsibility" must be judged
simply standing still no matter how
ade and generation after genera¬
rather
take
for
granted — the
in terms of whether it is somehow
comfortable the position might be.
tion.
My own company was 60
drugs, the fibers, the plastics and
beneficial
to
the
immediate
or
So
actually against orders — he
-would have been brought
years old last month and it is fruite
took some of the profits and began s\} 0I]
long-range welfare of the business.
a baby compared
about
if industrial
to some others. research on
management
other products.
Our first responsibility is prof¬
Now. it seems to me that in our
had
not accented that dual eco¬
itable operation. That is the simple
This went along very nicely un¬
tax attitudes toward depreciation
nomic and social responsibility.'
and perfectly honorable purpose
til one day an experimental unit
we
have been treating business
blew up, and then, of course, the
underlying any economic endeav¬ either as,
Management and New Vistas
though it were a ternor.
As employees of the. owners
porary sort of thing or as though directors found out what he had
We are now just in the early
it is our job to return a profit. We
it were operating in a static econ¬ been doing. The resulting differ¬
are
custodians
of
their
money,
ence
of philosophy almost blew stages of what everyone seems to
omy— as
though the purchasing
refer
to lightly
as
the "atomic
charged with the duty of seeing
up the
organization. Since they
power of the dollar were constant
age."
We don't even have any
that it earns and grows. All our
whether in 1910 or 1930 or 1960. wouldn't stand for research, Her¬
secondary responsibilities hinge on The result 'has been that we have bert went out and formed a new idea what the atomic age is. It's
too early in the game.
We have
profit.
invested a dollar with the under¬ company, with new capital, to con¬
duct the research he was bent on just discovered a few new things
To do that we need to be very

contrary it is
business

—

to the
general

ring
area

refer¬

course,

and progress.

a very

time

agement's "so¬

the

have

social

same

value of the owner's holdings

could then all give our stockhold¬
vival. But it is not entirely axioers some fat extra dividends.
But
matic.
I think there are many
in the long run they would be less
occasions when management could
well off, and to that degree we
sit back, let things run along as
eminent took into account some they are and return good profits would be shirking an economic responsibility.
We would, at the
obvious facts of life which relate for a long time.
same time, by shirking a .primary
to this problem.
Back in the early 1890's when
social responsibility.
• i
Herbert Dow had finally got the
Refers to Obvious Facts
We have only to look about ys.
bugs out of his bromine process,
to recognize that industry, through •
First, our economy is not a static it turned out to be a
very profit¬
its research, has been responsible
thing. It moves and changes. For able business.
His
stockholders

Our function is an economic one,
we

pro¬
earn¬

earnings."
In our competitive

judgment

advance

rhot»a

ering

discus¬

some

and

them—much less
my
own.
I do
think, however, that it is time both
industrial management and gov-*

pass

Basic Function Is Economic

well be

energetic

of capital and

use

take

the

management that could
regarded as both economic

living.

search only so long as we make a
profit, but we have a responsibileconomy and ity to see that a portion of our
Well, a number of suggestions
have been proposed, and at this ever-changing technology this is Profit is so directed. We could all
stop research tomorrow and we
point I don't know that I care to quite apt to be a necessity for sur- ~ ~

and depreciation

practices to bring about capital flow for growth

ings

Now, there is another responsi¬

bility

industry has been ad-

gressive

Social Responsibility

We told him: "Progressive and
preciate the current value of
plants adjusted upward for in¬ far-sighted
use
of capital and

tion's effect on profits, Dr. Doan notes that the steel industry
has been advancing "sensible and potent arguments" for some
form of replacement-cost depreciation, under which "we would
depreciate the current value of plants adjusted upward for
inflated costs." Asks that industry and government face

re¬

flated costs.

of progressive and far-sighted use of capital and earnings.
Decrying chemical industry's failure to recognize price infla-

does

worthwhile.

entity

corporate

Primary

vancing some sensible and potent and social. Among other things,
arguments on this score which fills college student that I spoke
of asked; "What do you consider
could be simplified under the term
"replacement cost depreciation." the primary social responsibility
Under this approach we would de¬ of management"?

end in itself instead of the economic fespon-

should go about

The steel

this to become

Thus

the

covering it, is open to debate.

management's "preoccupation" with "social
consciousness/' Dow Chemical head warns against allowing
j

how

and

President, Dow Chemical Company

Referring

much we have a right to recover,

Operate Profitably

By DR. LELAXD I. DO AN*

standard

re-

lags behind us in

consumer

pean

making

But how

placing that plant today.

know it depends upon
individual investment in

as we now

depreciation we have recovered on
a plant built 15 years ago will not

And because of this

lag the Euro-

Principals

with FIF Investing Associates.

are

Volume

Number

186

5656

The Commercial and Financial Chronicle

M7)

meet this

What Kind of Tax Reduction
mm mm

ri,,,

that

There

to possible patterns of modest tax

„

be fitted into the longer

L»y RICHARD A. MUSGRAVE*
Frofessor of Economics, University of Michigan
Ann Arbor, Mich.
D

tion

plan, "if and when" conditions permit, which lowers low

income group rates

After

diagnosing

Economist

tax reduction

long

Musgrave claims: (1) cutting the budget reduces builtz«>\

flexibility;

has increased
current

«.

(2)

and (3)

real

ii.

public

distinct downturn

relief at the

lower end of the income scale be

given in the form of rate reduc-

just

disaster

tion,

home—

nightmare. It has

basis

incomes be made more equitable
a^hy reducing top bracket rates and

substantial cutback

which would set us back into
rigged economy of the wartime

ex-

- -

As yet, I do
see
the

J&mBmproduct

not

in real terms is

one-third

de-

now

wartime

above

the proposed changes work in this

levels,

and we are looking back at a dee- direction, although I have by no

ade of unsurpassed prosperity. Far

means

from

done.

prosperity.

calls for early
tax

cession

re-

which

reduction.

When

'■

shall

comes,

>■-

the

than

private

flexibility

in
'
adjustments to permit prompt

only

'fair

tax

friends

action.

But

let

now

reduction.

the

not

long

continues at

time

the

of income. It is
vis-a-vis our

uses

that

abroad,

these

cut-

backs need not be undertaken

American

the

cause

be-

taxpayer

would starve lest his taxes be cut.

buoyant level, tax reduction will
only increase the need for tight

Notwithstanding present levels of

already
tween

monetary

tax

and

tion.

restric-

favor substantial

expenditures.

cuts

much dis-

turbed by the growing by-partisan
commitment of Congress to such
a

President's

drive, if belated,
of his budget. What-

defense

can

ever

ficiency

increase

done

that

grams,

but

ap-

curtailment

cuts

grams.
do

that the American

people spend too large
budget for these
believe

not

level

consumer

the

longer

will

rates

rising yield,

re-

tion may not be reflected promptly
(under present conditions) in price
reduction, .and the announcement

quirements rise less rapidly than

rises.

national

rates

that

provided

defense

fbe level of national

little

see

Ptussian

likely
Such

basis

faster

the

to
for

it.

more evident to

case,

income

ton

that

than
we

rfuction

over

the

few

&ucn ^xPeclall0ns u 111 mdi.ei laJizc

turn

less

for

because

cut

intolerable.

the

from

taxes

un-

current

load

sense.

convinced

not

What

President's
that

between

seems

walk

military

tax

better;
event,

think

the

nightmare—
a

knife

edge
abroad

defeat

i
•
.

•

Wl '

Testimony i»y Professor Musgrave before, the Joint Economic Committee, Subcommittee .on .Fiscal, Policy^ Washington,
D. c:t June 6, ii>57.
• !
•

invest

able funds. Some of the

the

level

The

former is

changes

will

avail¬

helpful

both

same

time, the suggested

the

case

as¬

that the resulting effects on
investment operate via changes in

supply of available funds, in
the increase in invest¬

case

and

ceed the

latter

consumption cannot

ex¬

reduction in tax yield.The
be the

may

case

if effects

investment operate via changes

profitability due to changes in;
rate, in which case, invest¬

tax

ment

rise by more than the
tax yield.

may;

reduction

If the latter interpretation were
the

correct,

At the

of income will rise.

sume

suggested

respects.

proposed

expenditures,

reduction

considerations of equity. In such a

relief would be

tax

case,

reduction

with

combined

of taxes

investment

concen¬

This

available.

conceivable

chain of effects, but I do not think

heavily on capital in¬ that it is likely. At the same time,
corporation tax might I do not think that the cutback
in the budgetwill have a sub¬
be
cut
more
and
capital gains
taxation might be repealed. Better stantial deflationary effect in the
of a highly
still, taxes might be raised and present setting
specific subsidies be given to in¬ buoyant economy. In this setting,
savings find their way readily into
vestment
where
they are most

trated

come.

The

and

investment,

effective.
I

of
can

not

deficit

01*

less

all

prepared

finance)

sustain neither

tax reduction
crease

the

economy

flexibility.

high level of

providing for an in¬

in consumption

well as

With Glore, Forgan
Harry H. Morris. Jr. has joined
the New York sales department of
Glore.

Forgan &
Cit.v,

York

New

and

York

New

Co.. 40 Wall St.,
members of the
Midwest

Stock

Exchanges.

in investment.

ol offers to kn.v any qf tnex securities.
offering is made only by the Prosf icitt.-.

This adverthemtni is neither an offer to sell nor a solicitation
The

July 16, 1957

$16,000,000

Texas Electric Service
First

capacity

stabilizing

dein

Company

Series due 1987

Mortgage Bonds,

Due July 1, 1987

Dated July 1, 1957

do best by cutting out excises and

payroll taxes, while increasing the

that

progressive

taxes

in the

Price 101.608% and accrued interest

system,
.

...

conditions turn down especially those on-capital gams.

deficit is called for. '

The

proposed

brackets of SI,000 cash, and cut rates

pattern

does

not

Copies of the Prospectus may l>e obtained from any of the several under.
tiriters only in States in which such underwriter: are
"aimed to act ain securities and in which the Prospectus may legally be distributed.

by 3 percentage points—

—-----—

—

—_

(9)

Reduce excises——__—_____
.

—

•

Net change

•

J-

•—1>500

'Ladcnburg, Thalmann & Co.

—

500
400
200
400
500
200
500

—

(6) Reduce corporate rate on dividends paid by 5 points
(7) Reduce depletion allowance-<(8) Reduce corporation tax rate to 50%

200

The

—

+
+
+
—

-j-

—

Reduction in selected excises
...

■

Net change

—1,000

!
-

The First Boston

Werthcini & Co.

Bache & Co.

Wood, Struthers & Co.

Corporation

Central Republic Company
(Incorporated)

New York Ilanscatic Corporation

Robiiison-lluniphrey Company, Inc.

Shearson, Ilammill & Co.

—/ —2,000
Assuming a more substantial reduction of S5 billion,
I would implement the above adjustments by
*
\.
(10) 5% cut in all bracket rates under the personal income tax, leaving upper limit at 60%____•
——
—2,000
(11)

dealers

first bracket

(2) Limit top surtax bracket rate to 60%
(3) Apply source withholding to interest and div. income
(4> Other measures to tighten personal income tax__—
(5) Repeal 1954 dividend credit and exclusion________

this

intolerable

repeated

must

the

that

attractive

(1) Split first bracket of personal income tax into two

load

not

for investment;
or
it may
increase because investors find it

Millions

must

political point of view; arid
if so, what Congressional leadership can do tp persuade the people
otherwise. However, I can judge
the economic aspect of the matter,
and

that

qualified
judge whether this is the case
am

Humphrey theorem holds '

S5 Jm J
Hi Jh
Tf
^g s^d taxes high. If

5?- ?

much of the current drive for cut-

that

fHi???

....

economic
a

the

pleasant

and

banner

increase

may

funds become avail¬

able

only in the Pleasant event that in- per dollar of tax yield, we should
or,

the

investment
more

years.

the

along civilian lines, 1 do not
we should suspend such
services. However, this is not the
important point for by topic.

de*

the

Flexibility

£ P»0P°sed plan for tax leduction will not increase the autowajic stobih/ing capacity of the

ours.

cided

Built-in

„

should^

done

ting the budget is carried

the economy. What I like to refer

NF.W ISSUE

Effects

Such rxnectations will materialize

point

be to enhance growth in two

because

level of demand in

plus private)

ment

reduction

tax

fiscal

ih public expenditures and
yield reduces the total (public

the taxpayei.

feel that

important

effects

respects,

ratl^r than economics) will be

The

may

aigumcnt in politics

make.

consider that

national

rise

being

way use an

income. This

assumption

happy

the

income

This will permit cuts in tax

proposed

can

The

Growth

equal de¬

cline

the

011

reasoning

effect of income tax reduction pif

level

the

ternational conditions take

•

share in the Federal tax bill is alf.eac*y fairly small, excise reduc-

present tax

run,

bring in

re-

what

Traditional

theory has held that

m,Y
on

justified expectations for tax

tor in the economy.

professed liking for reliance investment por a high level of
the personal income tax. and consumption.
perhaps it is. However, the excise
Therefore, I favor a .balanced

would
continue, even
though
present rates of tax have to be
maintained.

part of
things. I

recognize

defense needs curtail

reduction in excises, but secondary to the income tax adjustment.
This may seem inconsistent with

20% gain
these gains

un-

snendinf

defense

high; and while

ver^ careful not to create

the

that

particular not, if

the world picture,

see

not think

their
do

1947.

sav-

As I

since

and
expect

but

citizen, I do not favor
general
curtailment of
pro-

change),

pro-

rather than'efficiency

ings. As

This

done.

substantial

any

involve

will

ef-

expenditure

public

programs
should be
much is self-evident:
pears

American

capita basis, and deflated for

per

I sympathsize with

and

course;

the

price

Nor

taxation,

it will increase the has experienced a 55% gain in his
existing imbalance be- .income after tax since 1940 (on a

and

money;

budget—including tax and
expenditure reduction—will be an
inflationary or a deflationary fac¬

which
Effects

bearing

some

proposed cutback

in the

add,

its present

economy

legislation

by the Congress.

the

]

private income is respent, be it.
support
for consumption or investment. In
such an approach. For one thing,
such a setting, a balanced cutback
I believe that equity is an impor¬
in the budget has little or no ef¬
Apart from these adjustments tant, part of sound taxation; for an¬ fect on total demand. However,
hi the personal income tax, 1 other, sustained growth requires
should a recession occur the re¬
would like to see a modest cut in a high level of consumption as
sulting decline in income will be
the rate of corporation income well as capital formation. Tax re¬ sharper tflTm*Ttswould have been
tax. again to be combined with a
duction
which
places exclusive had there been i\ preceding; cut
tightening of the tax base. Also,
in the budget. This^js but another
I should like to see a change in emphasis 011 capital income,
w*ay
of repeating what I
have
the 1954 approach to the dividend sooner or later tends to result in noted before, namely that cutting
credit. Finally, I suggest a modest a situation where (in the absence the bud en
r e d u c e s
built-in

lays are considered less desirable
Prof. r. a. Musgrave

for

budget,

^r°sion ol the income tax base,
including recent proposals to peiincome tax reductions for exPcn(htures on education. 01 all
*?lms °* Federal aid to education,
this seems to me one ot the least
desirable.

severe

economic 1 necessity

because

not

sist all tendencies towards further

demands it, but because these out-

increased

see

the

done for the right reasons: That is-

would

impediment,

II the Congress insists

tax

cuts, and

being

cutbacks

be strongly in
favor

fmm

tax

over

have

may

reduction,

tax

taking measures to assure that pattern is not the one which I income, might be inflationary in
such rates as remain will really would propose if I were asked to its net effect. Such at least might,
be the case in the short, run, until
apply, not only to salary, but also consider favorable effects on
the additional
capacity becomes
about to capital ipeome. A number of growth only, while disregarding

listed all that should be
addition to removing
•'bi&' budget has contributed to this existing inequities, we should re-

veloping

control

type

whether

Inflationary

Deflationary?

type, but current proposals are far
below that.
The gross
national

before.

of the tax structure. For this

reason, I favor that

be a level of military expenditures

penditures,not

signs of

tax structure.

personal

core

when

conditions,
a

rather than by raising exemptions and
dropping
people
hi fact, at least not in the present from the tax base.
Similarly, I
setting. To be sure, there could favor that the treatment of higher
is

Tax reduction will be called for

toe

economic

and

Calted For

equitable

p1re.serve aild improve
income
tax as the

)'P:

big

our

views

mate
'

Most important is the idea that

manner

Early Tax Reduction Not

occurs

tutes

to allow predetermined
changes to be instituted when required.

tax

there

certain

are based on
what consti-

finally,

tax

to meet changi 11 g
business conditions; and this could
be done without any loss of ulti¬

^pec s

These adjustments

and suggests authority

prosperity;

our

prescribed

Denies

contends

budget contributes to

economic

•

capita income after taxes

per

be delegated in

55% since 1940 and 20% since 1947.

adjustment:

,<1U1+y

rp,

should not be restricted to

load in America is intolerable;

tax

when there is

«.•

tax reduction

con¬

undertaken

following type

this condition continues. Pro-

policy.

urge

Cut

Budget

The

in¬

Monetary-Fiscal Authority) or to
a
joint
executive-congressional
group: If this were done, prompt
adjustments in tax rates could be

s2^XomV worn" ""the

substantial cut in

nor

different matter

an<~J wil1 not be considered here.

present economy as being buoyant, .be

our

prescribes

capital income;

quirements is

and limits top surtax bracket rate to 60%.

Federal expenditures
fessor
m

modest future tax reduc-

ways

I would

„

plan
whereby
authority to adjust the level of
tax rates in a prescribed pattern
(say, by raising or lowering the
first bracket rate of income tax)
would be delegated to the Execu¬
tive Branch (the much discussed

run

as would become possible with a
substantial cutback in defense re-

rrominent tax economist
proposes a

do I think

nor
.

"better

particular,

sideration

objective of improving and consolidating the
tax
structure.
The
problem of major tax reform, such

...

are

the flexibility of tax

crease

When Taxes Are to Be Reduced?

objective,

it should.

•

------

—5,000

Biirnham and Company ~

First Southwest Company "
.

•

Schwabachcr & Co.

Julicn Collins & Company:

The Illinois Company
■

Inc»r|K>ratfd

KiTkpatrick-Pettis Company

.Blunt Ellis & Simmons
^

The Commercial and Financial Chronicle

m <288) 3

Thursday, July 18, 1957

Defines Present Kind of Inflation

Tax

:My reasons for suggesting this

Policy f01 Economic Growth

The

small.

been

Economics, Yale University

CONSOLIDATIONS

wage

presumably result? from

NEW

BRANCHES

NEW

OFFICERS. ETC.

mand

the present

easy

situation

bejjeve

that

must

face in the

prepared

long-run

future cannot be

near

properly understood
first
place
them

problems

the
be

unless

per-

spective.
I f

long

path

which

I think, give the reduc¬
of the corporate income tax
high
priority.
Savings
out
of
corporate tax reductions are high
(consumption out of these tax
reductions
is
relatively
small)
and a lowering of corporate tax

gradual

Such

small

total

keep

bear

situation

t i o n

or m a

call

rising proportion of
to defense. As¬

output

Jt moderate

sum

tax

tional output which we are

devot¬
defense constant and that
in the long- run the sum of inter-

ing to

est-on-the-debt, veterans' bene¬
and
agricultural subisidies
will be rising in a lesser propor¬
tion than output or will not be
rising at all. Then in the long
fits

half of

this

self

billion.

one

increase could

credit.

ing influence

would

it¬

tax rates

tends

rise

straints

General

could

somewhat higher proportion

than

output, and because

the

foregoing assumptions part of the
Federal
sum

and

put.

expenditure, namely, the

interest, veterans' benefits
agricultural subsidies, rises
smaller proportion than out¬
does not rise at all, while

defense spending rises in the

proportion
It

output

same

whole.

not be too optimistic to
that in the long run out¬
put will be growing at an average
may

expect

yearly rate of 3% to 4%,
hope more nearly of 4%.
Annual

Budgetary

let

Surplus

On these

assumptions/the aver¬
yearly increase in the budg¬
etary surplus, with constant tax
rates, might come close to one

age

billion

This

dollars

means

there

exists

sure,

present

prices.

that in years in which

such

inflationary
would

pres¬

call

for

further

increasing the budgetary
surplus, we could i;educe taxes, by
almost

one

periods

may

Deflationary

justify much greater
tax reductions but I

temporary
am

billion.

concerned

here

with

the

urnal

growth path of the econ¬
omy, nof with measures
appro¬
priate to severe cyclical swings.
r

ally,

the

all

economy

tax

rates

reduced

exemptions,

could

But if

are

grows

small

gradu¬

coulcl

steps

get steady growth without

potential

ade¬

quate amount of that kind of pub-:

the timing of gradual

tions,

spending which
is corople-,
mentary with private investment.

although

that

out

credit

re¬

miscalculation

lie

the

effect

tax reduc¬
should turn

and

concerned with the

^Statement

by Professor Fellner before
the Joint Economic Committee, Subcom¬
mittee on tiscal Policy, Washington 25,
I>« C., June 3, 1957.

reduction,"

tax

increasing

tends

moderate
conclude

period

calls

may

restrain

prove

that

the

monetary

including
budgetary surplus?
tempt
trend

seems

stem

should

present
anti-

and

fiscal

higher

our

at¬

specifi¬

the

productivity of

mains

labor.

whether

seen

re¬

weighs
heavily

tax

heavily

this

than

policy

stimulation

the

far

less

the

effects of

wage-cost inflation

the

inflationary are
concerned.
thought to
Let me end by expressing the
require no more
general monetary-fiscal restriction 'opinion that the situation which
we

methods

than

should give

that

have now, and possibly
to methods that require less than
the

degree
of general
monetary-fiscal restriction. In the
present

our

economy

deliberate

for
of

growing

faces calls

long-run

planning

gradual tax reductions

the

hand and of gradual increases

event that in the fiscal year

one

the surplus

in growth-oriented public expen¬

1958
in the administrative
budget tends to rise beyond one to

ditures

the

dollars, then, in my
opinion, much can be said for a

tion

does

small

and

'risky

reduction.

especially if
are

other.

The

situa¬

billion

tax

our

willing

methods

This is true

policy agencies
explore

reducing

tionary trend,

other

the

infla¬
.

as¬

been

director of .1. P. Morgan

July

World

Airlines, Inc., was Assistant
Secretary <3l Defense from Sep¬
tember, 1954 until he resigned to
assume the Presidency of TWA in
January of this

with Bank¬

began

Department and except
out in service witli

States Air Force from

through

Frenzel

1946, he

career

has

spent

in bond work; ML
an

Assistant

with

National

named

was

1955.

Guiltinan.

Division No. 3 of the bank's Bank¬

ing Division, began work with the
in 1951.

company

Perkins

Mr.

Trust

joined
in

Company
with

worked

Bankers
He has
Depart¬

1.953.

the

Bond

ment since that time,

Hall

Assistant

United

Company

New

joined the bank in 1937
in

Auditor

became

Harold W. Dodds
the

Board

1950

States

United

was

and

elected to

Trustees

the

Trust

Company of
according to a state¬
released recently by Ben¬

York

New

ment

appointment of

Trust
He

been

has

the

Assistant Controller in 1952.

•

The

Controller

States
York.
and

Block

Edward
elected

jamin Strong, President.

year.

*
•

Two years later he joined

United

1942

'■

has

Donald

Vice-Presi¬

New York, is announced by

Bernard

dent of Manufacturers Trust Com¬

There
tween
a

not

call

cuts
little

for

haphazard

the

budget.

difference

be¬

starting to put into effect

long-run

plan

starting to do

this

year

next year.

Flanigan, Chairman of

the Board.

money-wage trends and trends in

demand,

that in

was

Henry C. Alexander, Chairman.
Mr. Burgess, President of Trans

(

additional

measures,

beyond

grow

Burgess

announced

was

pany,

unnecessary;

consumption

government,

levels.

for

inflationary

Frenzel

Mr.

Co. Incorporated, New York

Horace

cally, or further to restrain credit
and actual budge¬ in
general, when investment is;
tary surplus, cannot be decided
stimulated by tax policy. Success
on objective or scientific grounds
or
failure of the effort to curb
alone.
Value
judgments
enter
wage-cost
inflation
may,
not
But
here.
grossly
unreasonable
depend
on
whether, when
the
decisions
in
these
matters
are
occasion arises, we let the budge¬
nevertheless objectively wrong, in
tary surplus rise by further two
that they can reduce the actual
or
three
billion
or
whether
in
output
considerably
below
the
such
an
event
we
keep
the
potential output.
budgetary surplus low by reduc¬
ing taxes
on
new
investment.
Turns to Present Period
Indeed, more investment raises
I shall now turn to the question
the rate of increase in labor pro¬
of whether we should start along
ductivity, and to this extent it
these lines of gradual tax reduc¬
tion
as
soon
as
the
budgetary might reduce the gap between
surplus

years,

named

was

Avegno, retired of¬

ficer of the foreign

the

Guaranty

department of
Co. of New

Trust

York, died oh July

10 at the age

expenditure,

very

the

gradual

Smith

Mr.

corporate

long-run path of the tax reductions must be offset by,
economy, room miist be made for further general credit restraints,
the public-expenditure
require-; then at the end little could be
said for this combination of poli¬
ments of a growing economy as

two

increased.

elected

course, also be
the consequences

De¬

from 1925 to 1929.

Carter

offset

1930.

de¬

investment and,

gradually

Carse

Bond

the

sociated with Bankers Trust Com¬

smaller restrain¬

consumption.

pany

Trust

Treasurer.

for four years

Smith

bank

necessary, a greater and more
selective restraining influence on

•

given

used

sirable to exert

Some

express

inflation

the

run, we call afford to raise the
'average of all other non-defense
items in the budget at the same
well as for tax reductions.
cies. ■'
■
'
rate in which output'rises, and we
It must be admitted, of course,
will still have a gradually rising
May Not Need to Restrain
that the. proportions' in which a'
Consumption
\
budgetary surplus.
potential surplus is to be divided
This is because Federal revenue
Yet it

A. Smith

brings to his newpost 27 years of experience with
the Grace organization.
He was
appointed Comptroller and Audi¬
tor in 1951.
Prior to joining the

variety

increase

wage-cost

consumer

in.rising grants in aid to state

between

Charles

named Cashier in 1932.

Mr.

reductions of the

out

arid local governments. We cannot

Along

the
Holtermann

Louis

was

and has

1932

with

Trust Company as a page boy

ill 1933,
E.

with the Grace Bank for 41

should con¬
sider reintroducing selective credit
controls to curb the expansion of

penditures would on the averagebe increasing by several hundred
million a year, perhaps by close
one

new

have had recently.

noticeable extent,

yearly rate of 3% to 4%. In other
words,
these
non-defense
ex¬

turn

rate

at about the average rate
which output rises, say, at a

Mr.
ers

Grace National Bank of New York

and

should

investment -stimulating

Pellner

for example, that we shall
the proportion of the na¬

sume,

growth than

long-run
plan would
raising
Federal
non-

sidies)

Yvnuam

Mr.

1943,

Assistant

Treasurer in

which

formation. We need

bank

connected

his entire

taxes

Corporate

partment work since that time. In

re¬

the

been

quired for national security and, was announced on July "16 by
for healthy domestic growth, then
Ralph S. Stillman, President.
we should
consider reducing first
Mr. Holtermann, who has been

capital

expenditures (other than
of
interest,
veterans'
benefits
and
agricultural
sub¬

unless the in¬

the

time

same

the

for devoting a

programs

defense

steps,

ternational

involve

tax

reductions

government

capital

for

ro o m

the

Increasing Public Spending

will be

there

the

Carse, with the

those

increases

investments.

appre¬

Mr.

sion

If at unchanging- tax.
rates the surplus in the admims-\
trative budget should tend to rise
beyond a very moderate level,
and if it should
be possible to
achieve
this
without
impairing

with the

been associated

Agency Division of the bank's
Trust Department, joined the com¬
pany in 1925.
He began working
with
the Corporate Trust Divi¬

there-v

suggest,

1937

Officer in 1953.

policies;

ciably, then

with

career

Company

Trust Department since that time.
He was elected an Assistant Trust

the

President and Comptroller of

Trust

and has

Vice-

fore, that thought should be given
to the following combination
of

tion

gate output is

demand-

necessary

would

should,

rates

•

Smith

Sigler began his

Bankers

Cashier

and

Recommends Policy

problem ol' economic growth, we

aggre¬

rising

the

than investment.

the willingness to undertake risky

continue

can
on

the

run

Charles

and

restraining- influences in' part by
measures that restrain specifically
consumption expenditure rather n

tivity of labor.

which

Vice-President

Moreover, it would be desirable to
exert

trends, and trends in the produc-,

money-wage

Mr.

Election of E. Louis Holtermann

by meth¬

impact of which is con¬
centrated
entirely
on
demand.

hope that labor productivity will increase to reduce the

between

gap

control

under

the

ods

credit controls and investment stimulation

consumer

trend makes it difficult to get the

inflationary trend, Professor Fellner suggests we

less,
general monetary-fiscal restrictionism, and recommends reduc¬
ing taxes which would encourage capital formation, providing
we
achieve in 1958 a $1 billion, or more, budgetary surplus
without impairing public spending for defense and economic
growth. Should wage-cost inflation occur, the author prefers
selective

for going
demand side, the
this
inflationary
speak

not

the

character

Turning to

give thought to methods which require no more, and even

in the

Bankers

and

REVISED

cer¬

CAPITALIZATIONS

growth-oriented non-defense public spending.

does

this

While

inflation.

tainly

deliberate long-run gradual tax reduction policy, with
priority given to corporate income tax, and a gradual increase
in

News About Banks

uptrend

recent

push rather than from de¬

in prices
a

Well known Yale economist believes our growing economy re¬

quires

the following.

are

growth rates have

Since 1955, our

By WILLIAM FELLNER*

Seymour II. Knox Professor of

of action

course

and

Mr.

Hall

■

joined Manufacturers

appointed
Manager in 1950 and
He

was

an
an

Assistant
Assistant

in 1951.
At present.
Mr. Hall is assigned to the bank's
57th Street office, 741 Fifth Ave¬
Secretary

■*.

The

Hanover

elected

Chief
the

:<!

■

Bank, New York.

Harry

Barrand,

Jr..

Officer

Administrative

ap¬

the

Department of The Bank of New
York, it was announced on July 9

by Albert C. Simmonds, Jr., Pres¬
ident.
as

Assistant

Trust

the

Personal

Trust

Appointed
in

Officers

•

Administration

I Trust

been

Officer

Trust

Personal

New York.

nue.

John B. Dunning has

;

pointed

Trust Company in 1945.
...

of 73.

Administration

Department were
John W. Arthur, Thomas S. Ham¬
ilton and John

Other

bank's

R. Hill.

appointments were Fred¬
Dohrman, Assistant Sec¬

foreign division, suc¬
ceeding Basil Hwoschinsky, Sen¬

erick

ior

retary— Real

Vice-President,

tire

31.

Dec.

promoted

James

from

President

who

will

re¬

Greene

Assistant

Vice-

Estate Department
Higgins, Assistant
Income Tax Depart¬

and Norman N.

Secretary

—

ment.

Vice-President.

Bankers

York,

Trust

four

promoted

three

cers,

ment and

ment,
Sloan

one

the

its

Trust

offi¬

Depart¬

announced

Chairman

by
of

S.
the

Former Assistant Trust Officers

Sigler,

Hughes and C. Russell
both with the Personal

Trust Division of the bank's Trust

Department,

were

Assistant

Treasurer

Her¬

Frenzel, of the Bond De¬
partment, were promoted to As¬

man

sistant

Prior to
The

nounced the

election to

Colt

an¬

Organization,

Trustee of The
York.

New

Astor

officer of
Organization

1952, Mr. Ammidon was a Viceof

The

Hanover

Bank,

with which he had been associated
since his

graduation from Yale in

1932.
*

THE

•-:=

CORPORATION
NEW

Total

29,'57

$4,654,553

resources

Dec. 31/56

$3,424,602

1,351,735

321,349

2,632,472

Deposits
Cash

COMPANY,

TRUST
YORK

June

1,719,002

435,635
549,483

431,278
416,347

and due from

banks
S.

Government

security

holdings

Undivided

profits,_
$

Assistant

Treasurer of Gerald Guiltinan and

becoming

Vincent

President

■?

Mr.

Bank,

Hanover

Vice-Presidents.

Simultaneously,

Vincent. Astor

has been elected

Trust

named

Officers, while former Assistant
Secretary George F. Carse and
former

The

Board.

Walter

Hoyt Ammidon, chief executive

New

in the Bond Depart¬

was

Colt,

Company,

Frank

'fi

Robertson, heretofore

Seymour Perkins.

senior officer of the Fordham of¬

Beginning his career as a bank
in 1934, <Mr. Hughes
joined the Personal Division of

fice,

messenger

the bank in

1941.

to the official staff in

was

elected

1955.

has

been

elected

Treasurer

of American Trust Company, New.
York.

Mr.

Robertson

will

charge of operations and person¬
nel at the bank's home office, 70

Volume

186

Number

5C56

The Commercial and

Financial Chronicle

(289)
»>

Wall

Street, New York, the board

of directors announced.

'ertson "lias

been

Mr.

with

Rob-

Bank, New York.

Paul E. Berner

will make the merger worth about

regular
75

sistant
the

Trust

Officer.

bank in 1943

and

v'-

Mr.
of

i:-

John

The

the

announced

*•

of the Comptroller
Currency issued a charter

took

branch

office,

Avenue

and

West

corner

2nd

Street,

Brooklyn, N. Y.
a

Trust Officer of the
Lincoln
National Bank & Trust
Co., Syra¬

N. Y.

his home at

execu¬

Colony Trust Co.,

Boston, Mass., died

the

Mellon

Trust
for

Directors

the

Citizens

Trust

the

Manufacturers

Trust

and

Traders

Company of Buffalo,

approved plans for

For

merger.

share of Citizen's Trust, M

every

&'T

will

give

12 V2

shares.

REPORT OF CONDITION

This

July 10 in

Westport, Conn.

;

At the

100th Annual
Meeting of
Corporators of The Connecti¬

the
cut

Savings Bank, held

changes

July 10,

made

were

thes

Dr.

Charles T.

Flynn, a Corpo¬
July, 1933, was elected
Truoiee, and Carl G. Rosenquist,
an Assistant Treasurer since
July,
1948, was elected a Vice-Presi¬
rator since
a

dent.
An

employee of the Mechanics

Bank

for

years,

Broadway. New

York

June

business

TIIE

2.),

at the

pub¬

in accordance with a
call made by
Superintendent of Banks pursuant to

the

provisions

State

the

Banking Law

the

York".

New

Total

with
other
banks and trust
companies,
and
of

reserve

and

due

banks

cash

items in

States

obligations,

Govermneut

Obligations

and

15,007,988.74

States

ing $1,004.87 overdrafts)—
Banking
premises
o w n e d,

furniture

and

tures—
Oilier

17,052,180.04

fix¬

assets—:

4,071,225

Cash

and

due

$72,578,441 $07,065,882

deposits

viduals,

7,410,839

Loans

18,678,893

58,228,342
903,744

050,602

BANK

AND

United

States

and

475,297.47

1958,
ment

950,481.77

DEPOSITS

$33,901,477.90

243,157.04

LIABILITIES—«_■_ $39,144,034.94
CAPITAL

Capital t
Surplus

ACCOUNTS

fund

1.000,000.00

____

Undivided profits—

4,707.00

CAPITAL

$3,500,524.07

——

LIABILITIES AND

CAPITAL

stock

ACCOUNTS

$42,045,159.01

bank's capital consists of

with

total par

value

are

after

common

$1,000,000.00.

I,
that

best

The

Harrisburg National Bank,

Harrisburg,

with

Pa.,

common

$625,000; and the Second

National

Bank

Meclianicsburg,

Mechanicsburg, Pa., with

common

stock of $125,000, consolidated
as

idation

l&rg

of June 29.

title

National

ef¬

The consol¬

effected

was

and

under

"The

reserves

Kenneth
the

above

146,084.62

the

Harris-

211.450.53

Landfare,

capital stock

divided

into

of $820,312.50,

32,812¥2

stock of the par value of
$25 each; surplus of $1,679,687.50;
and undivided
profits, including

capital

of not less than

reserves,

$589,740.

have

Comptroller

and

KENNETH

true

KORELL)
FORD J- Directors

SUMNER
V.

declared

cents

the

Bryn

June 28 by the Office of the
Comptroller of Currency, approv¬

and

the

making

effective,

close of business June

TAMNEY'

per

extra

dividend

and

semi-annual
per

share,

the

dividend^of
both payable

Aug. 2.

29, the

of the Brecksvilie Bank,
Brecksvilie, Ohio, with common

$16,000,000.

The

merger

ef¬

was

"Central

National

Bank

date

pany

paid

the

cents

dividend

share in addition

per

extra

regular semi-annual dividend

of 75 cents per
ber

last

year,

share.

the

In Septem¬

bank

paid

177,744,607

341,361,389
377,375,959

374.852,256

11,533,971

9,509,348

McDonnell,

Chair¬

the

400,000,

receiving association
capital stock of $16,divided
into
1,025,000

common

merger

National

Mr.

Frank,

value of $16

$1,081,671.68.
*

sis

Francis

Beam

National City Bank of Cleveland,

Ohio, has announced the appoint¬
new

officers.

Richard

Gigax, formerly Director of Per¬
sonnel, has been advanced to As¬

State

tional

been

as¬

which

later

and

November,

tive

was

November, 1955.
Linnemeyer has

Mr.

member
since

1954.

First

their

with

Bank

=5'

the

Calif.,

added

ter for many years under

San

its

name

15th

the firm

Ludington Co.

Forms

H. L. Rosenberry, former Presi¬
of the Placer County Bank,

Rosen

dent

been

electgd

Bank

California

Mass.

Abraham

—

engaging in

business from offices at

Vice-President

Al. Rosen Co.

BOSTON,

ston

and

Manager of the Auburn office. All

St., under the firm

securities
62

Boyl-

name

Al. Rosen Co.

sistant

Vice-President in Charge
Personnel, and John T. Tatakis
has
been
appointed
Assistant
of

Cashier.
at

the

Both

Mr.

officers

new

bank's Main

CO.

are

Office.

Gigax has had more than
experience in the per¬

field.

Statement

During most of his service with

City, Mr. Tatakis
Purchasing Agent.
He
active

has

Cash

Otbs<r

Loans

Income

Boulevard

HI.,

Bank,

Thursday, July 25 has been an¬
as
the opening day of
Orchard

111.,

Bank
a

Trust

newly

with

plus

Accrued

and

4,502,349.91

1,234,931.34

Prepaid Expense

810,076.75

$350,924,033.51

—

LIABILITIES

Capital Stock ($25.00 Par Value)__^__
Surplus

capitalized

$300,060,"

additional $200,000 in sur¬

$11,875,000.00
11,875,000.00
4,705,306.91

Profits

Undivided

Total

Capital

Commercial, Bank and Savings
U. S. Government

Other

Liabilities

—

307,630,070.86
9,691,811.92
53,723.63

—

TOTAL

$ 28,455,306.91
5,093,120.19

Funds__
i
Taxes, etc—

Reserve for Dividends, Interest,
DEPOSITS:

Orchard Bank & Trust Co.

and

TOTAL

3,305,454.94
163,283,396.20

Owned

Receivable

Resources

84,095,486.06
84,254,105.19
9,437,233.12

Securities

and

Premises

Co.,

organized

bank.

been

$
;

nounced

Skokie,

Banks

Chi¬

elected

from
Bonds

Discounts

and

Other

Old

1957

Municipal Bonds

Bonds

Banking-

National

Due

States

State and

employee

bank

and

United

has

programs.

Old

of June 30,

RESOURCES

National
been

joined National City

1950.

been

OHIO

CINCINNATI,

16 years of

sonnel

$350,924,033.51

reserves.

Louis E. Rieger has been elected
President of the

also
Bank

associated

new

bank.

with

the

was

Peoples

of Bloomington, 111. and the

Sheridan

Village

State

Bank,

Tri-

July 15 when the Placer

The

been active in business in Roches¬

California,

County Bank, Auburn, Calif., be¬
came the bank's Auburn office.

offices

Building.
Officers are
J. Ludington, President;
William
F.
Butler,
Jr.,
VicePresident; and Howard J. Lud¬
ington, Jr., Secretary and Treas¬
urer.
Howard J. Ludington has

department

business

Francisco,

has

di¬

angle

Grigs¬

duties

office

$59,775,000,

$59,371,057.65.

formed

staff

National.

The

Howard

continue

new

stock

•

National's

Both Mr. Frank and Mr.

the

;

1927.

will

charter

the

ROCHESTER, N. Y.—The Ludington
Corporation
has
been

•

been

under

"Security-First Na¬
of Los Angeles."

Form Ludington Corp.

ap¬

business representa¬

new

common

The merger

undivided profits of not less

than

training division of First National
pointed

with

$12.50 each; surplus of $59,775,000;

member of the special

Na¬

Angeles, L09

vided into 4,782,000 shares of com¬
mon
stock of the par value of

Grigsby began his banking

career

Los

Calif.,

effected

capital

with

merged

Security-First

Angeles,
stock

At the effective date of merger,
the receiving association will have

de¬

First National.
Mr.

Los

$59,262,500.

title

and

partment since March, 1953, began
his banking career in 1919 with
the Liberty Central Trust Com¬
pany

into

was

St.

business

issued

was

common

Bank

Amreles,
stock

Bank,

with

tional Bank

has

new

have

stock of the par

Bank

who

the

waa

$227,010,

Louis, St. Louis, Mo.

signed

Jr.,

sis

Sis

certificate

June

Calif.,

Assistant Comptoller

First

by the Office of the
Comptroller of the Currency ap¬
proving and making effective, as
of June 28, the merger of Broad¬

357,338,296

discts.

profits

meyer as

the

:|i

Merger

way

effective

tne

of the Board, has announced
election of George F. Frank

the

lit

.Bacigalupi,

Calif.

107,918,693

950,874,262

se¬

William
man

stock of

common

fected under the charter and title

has

In February this year, the com¬

Dec. 31,'56

1,024,282,380

liold'gs

Undivid.

merger

Mawr

Mawr, Pa.,

Aug. 15, to stockholders of record

CHRISTIAN W.

LANDFARE

Correct—Attest:

issued

was

George
R.
Reeves and Jene Harper, Directors.

at the close of business

the

belief.

curity
Loans

cago,

Company, Bryn

regular

institution, hereby certify
statement

knowledge

JOSEPH B.

certificate

Mr. Tatakis
of consol¬

idation the consolidated bank will

deduction

of
W.

Merger

Bank."

At the effective date

re¬
;

above-named
of

above

shown

after

are

$124,428,689.36.

ment of two

Trust
$9,880,425.72

deduction

Securities

above,

the

for

serves

•(b)

and

shown

June 30

3,105.244

Directors

purposes

(a) Loans

bank

2,132,495

assigned to

liabilities

secure

other

of the

resources

25,755,402

pledged

charge of the bank in Petersburg.
The Bank of Virginia has 16 of¬
fices in six Virginia cities. Total

28,836,516

profits—

banks

2nd and

area

Streets.

ott, Jr., was elected to a Viceresidency of the Crocker-Anglo
National
Bank,
San
Francisco,

due

Govt,

foot

square

Carlos

tl^e President, and Walter F. WinCOM-

MICH.

North
Sycamore
and Lester J. Grigsby ^as Assistant
Street since May 22, 1939. George
Cashiers
and
Harry
E.
LinneR. Dupuy is Vice-President and in r

President

MEMORANDA
Assets

144

sis

common

t This

Loans & discounts-

have

AC¬

COUNTS

TOTAL

located

25,255,570

1,495,817.07

Reserves
TOTAL

Operations of the
bank in Petersburg began on Nov.
23, 1922, and the bank has been

23,827,500

d-iarter

$1,000,000.00

—

an¬

lease

term

elected Adminstrative Assistant to

TRUST

1,001,684,043
.925,596,919

Deposits
from

long

:!«

the first established out¬

was

holdings

BANK

DETROIT,

June 30,'57

and

that

James

side Richmond.

Government

fective
TOTAL

The
new
quarters will house
the office of The Bank of Virginia

that

D. W. Chap¬
liquidating bank.

!•!

resources.

Cash

office

Remodeling
will begin about Sept. 1 and the
new
banking office is slated to
open in mid-December.

of July 1.

DETROIT

Total

20,365,269

San

capital

agent:

man, care of the

President.

g*laK

from
.

8,500

of Vi¬

common

under¬

18,412,829

due

and

stock of

liabilities

get

shortly for
occupancy
in
according to an announce¬
on
July 10 by Thomas C.

way

not less than

banks

with

PANY,

President Edwin E. Adams

$60,000, went into volun¬
liquidation effective July 1.

THE

Currency to establish

nounced

stock of

tary

over

agreement has been signed for the

First National Bank

Virginia in

119,890.391

trust

and

-companies

TOTAL

132 380,033

____

new

loca¬

new

politi¬

Other deposits (certified and
officers' checks, etc.)

Other

122,493,199

11,155,958.16

of banks

modern

135,099.182

resources

Undivided

subdivisions

Deposits

Dec. 31,'56

499,055.70

Deposits of Slates

each; surplus of $19,600,000; and undivided profits of

security

Government-—
cal

COMPANY,

June 30,'57

3,780,152.33
of

the

111.,

are

in San Jose.

shares of

TRUST

Auditor

Bank, will

State

Vienna, 111.,

Petersburg, Va., will

32,908,229

profits—

COUNTY

$22,033,932.47

tions

tion for The Bank

will

Cash

individuals,
partnerships, and corpora¬

Assistant Cashier. V

Construction

18.039,436

discounts

Assistant

Absorbed by: First State Bank of

as an

Cleveland."

holdings

security

Deposits

and

corporations
Time deposits of

Deposits

9,382,619

Government

Total

indi¬

partnerships,

61,303,105

from

First

Liquidating

land, Ohio, with

Dec. 31,'56

LIABILITIES

Demand

The

$200,000, into Central Na¬
tional Bank of Cleveland, Cleve¬

66,474,235

by the

resources

ex±

Bank

The
Bank
of, California,
San
Francisco, Calif., has received ap¬
proval from the Comptroller of

Krause

Pa.

CONNECTICUT

resources

$42,045,159.01

—

employed

The

$550,000,000.

Pittsburgh,

than 20 years.

stock of

COMPANY,

G5.205.40
103,297.18

——

ASSETS--

89,412,322

166,077,089

TRUST

Mr.

in New York City. On July
1,1929,
came
to the Mellon National

ing

I'ATFR.-vON,
TOTAL

102;i27,551

4,660,582

STAMFORD

Undivided

—

and

were

103,144,269

profits—

banks

2,578,028.95

(includ¬

Bank

GO,766,310

Deposits

and

political subdivisions—-.Loans and discounts

Nnone;

holdings

STAMFORD,

Total

1—

National

Dec. 31,'5.0

discounts

«Sc

process

direct

CONN.

77,760,894

$7,097,792.04

guaranteed

TRUST

from

——.

THE

Government

been

Bank.

resources

$12,000,000.

California's

National Bank in Chicago Heights,

June 28,'57

balances,

collection-—.

United

AND

308,752,830 408,590,245
332,850,875 373,458,132

Deposits
Casb

Undivided

balances

.including

BANK

HARTFORD,

resources

Loan

"•

ASSETS

CONNECTICUT

security

Cash,

asso¬

Y.,

1957,

the

became

June 28,'57

4, N.

lished

its clos¬

upon

ing Mr. Rosenquist

Company
50

Vice-President

Orchard

enna,

staff.

COMPANY,

Assistant

has

banking quarters at

:-s

Underwriters Trust

Old

resigned from the army on
Oct. 4, 1922, and began work with
the National Bank of Commerce

•

ciated with the Connecticut Sav| ings Bank in August, 1932.

Company,

tfi

Company,

uuuoiiau,

Company of Fredonia, N. Y. and

official

Trust

Philadelphia, Pa.

official

Girard

two
*

He retired in 1942 after 32 years
as
a
banker.

and

ceed

Tate, 84, retired

tive of the Old

John T. C. Low, New York
City,
has been elected
Vice-President

cuse,

County Bank's total

W. Krause. Mr. Martin was
while vacationing at
Pueblo, Colo. * employed as an Assistant Cashier
His age was 56.
for six years by the First National
He joined the institution in
1952, Bank of Waupaca, Wis., and will

having previously been

offi¬

of The Bank of California.

At the time of merger the Placer

operating

Bank

July 1.
t'ii

Dale

men

ert

Beverly

ap¬

at the southeast

young

•

the bank, Leo W. Martin and Rob¬

Cashier.

another

the

con¬

effect

for

capable

nova,

This is

Springfield, Mass., that took

application

Pa., Vice-President of the
Philadelphia National Bank, Philadelphia, Pa., died on J.uly; 12,

Rieger will be aided by two

James G; Bowman.

President

version of Security Banking Com¬

Lincoln's

Bank have also been elected
cers

Mr.

Joseph Harrison, Jr., of Villa-

Norman R. Vester and the Cashier

The

pany,

Mr. Hooper also announced that
the Banking
Department has

,
•'
; : v, •
!'i
other officers of the Placer County

Peoria, 111., which he
successfully
organized and opened in June of

and

$420,997.75.

place at the regular July meeting
board.

■

surplus

of the

located

III.,

bank's Board

proved -The

dividend

share.

per

Bay Harrison, 61, died on July
13. He had been a Vice-President

election

the
The

capital of $340,000 and

membership

the

Boston,

Office

the

Trustees.

Co.,

the Security National Bank of
Springfield, Springfield, Hampden
County, Mass. The bank will have

election of Frederick Weisbrod to
of

Trust

was

Hooper, President
Savings Bank,

Y.,

Vice-President

England

Lincoln

Brooklyn,

Frothingham

Mass.

has been in

appointed

joined

the financial district since 1909.
;

semi-annual

cents

1954.

Richard

New

elected As¬

was

American

Company since 1951.
His
previous connections included Na¬
Bronx

■

$1,100,000.

Trust

tional

^Includes

$6,321,793.35

ment, which
Section

Trust

Money

deposit

the Banking

Depart¬

provisions of the Banking Law of the State of
preferred claim against the assets of the Bank.

under the

1107.12

Ohio,

The Commercial and Financial Chronicle

(290)

Effect of the Price Level

Upon Economic and
will

conclusion

the

come

purchasing power of the
dollar will be well maintained in

the

cause

the

for

this

better

In the first 10 years of
period the basic monetary

years.

that

$7.3 bil¬

reserves

of the country, gold, were

increased

velopment.

from

$4 billion to

$24

billion. Of course, this increase in

that the

demand for

the supply of basic monetary re¬
capital and that increased demand
serves, the nation's "high-powered
capital which becomes profit¬
Prices Fall in Long Run
ably employed is' what produces money," spelled a huge supply in
the promise of a sustained high loanable funds and that produced
Before turning to this analysis
we should take a very long view

the future.

for

Thursday, July 18, 1957

cause

records

the

nological progress

tech¬
making.

great

we are

be happy that those

days are gone.
economies have

Dead
no

Upward Price Pressures

"static"

interest rates.

Economically sick countries have
low
interest
rates.
I
hope the

However, when the rate of busi¬
ness

investment in

new

plant and

equipment'is intense, we have two

coming
into
operation
economy
we forces
will come to be ap¬ which work toward the inflation
of prices.
preciated and that one of the best
The first force is that Tmsiness
measures
of its health, a firm,
improved and satisfactory interest borrows money, and some of the
rate, will be applauded and not money comes from banks to fi¬

American

healthy
have

today

decried
We

should

firm

and

seems

be proud

be today.

of this new

higher interest rate be¬

nance

merit.

the

expansion

Borrowing

money

banks enlarges the money

in vest-

from
supply.

t£jl us that prices mostly fell

from

1815

46-vear

know

period

was

that

which

period

featured

had

from

to
30

almost

What's

just that from

new

thi

years

1896

1865-1873

period

make prices

can

wars

go up and they did
1861 to 1865. Then

the

Here

1961.

prices
declining, not rising. We all

were

1935-1955.

That "long view"

back at prices.
will

rates of

We should

certainly appreciate the

prospects

monetary developments of the last

annually being spent by
all industry for research and de¬
this leads to

decade the low interest rates, the dismally

interest rate by a quick review of

now

All

the

low interest

We can

good

today knows how to
do a very great many things very
much better in future years. Let's
leave it as simply as that and
lion

ahead.

are

Industry

ascribe

Basiness Outlook

interest

rate

the life insurance
going to be profit¬
ably protected in the years ahead.

protected
industry

Continued from page

fall in prices. From
we
had
the
only
sustained
peacetime
period
of
price rise which our country has
1896

1913

known.

ever

From

1914

1920

again entirely

prices rose
result of war.
experienced

From 1920 to 1939 we

another

19-year period of falling
the

tendency
most

shows, if all
left out, that the

the

United

time

has

neuver

7-mile stretch of

track, show how his CTC controls

record

could

wars

oversees

Simplified diagrams,

below, representing

prices.
Thus

single dispatcher in Erie

miles of railroad.

ma¬

passing trains.

States

been

for

prices to fall and not for prices to
rise.
This

tendency
of

toward

prices (perhaps
not know how adequately
to increase the money supply) has
given us serious and at times in¬

years

falling

track *1

tense economic

EABTSOUNO CENTURY
U'n i.viv.v/^/v

depressions.
y

Advantages

TRACKT2

FREIGHT »NY-6

Mild Price Rises

certainly do not urge that we
plan for some inflation to avoid
economic

recessions. But I would
point out the wide agreement that
we may have a
greater tendency

toward
may

mildly rising prices.
better

promote

This

12:35 a.m.

Freight ')NY-6"

crosses over

behind Commodore Vanderbilt to leave track #1 clear

business,

particularly promote better and
larger incomes needing life insur¬
ance

protection, that this way

better

"Boom,

than

and

The

the

old

may

way

Bust."

period

from

1948

1950

when prices fell, is most interest¬

TRACK #f

'wwi&w?

ing. So is the period of approxi¬
mately even length since early
1956 up to date when
prices rose
by an amount equal to the fall in
prices from 1948 to 1950.

EA5T&PU N D C EN TU RY

Perhaps if we can isolate the
factor which operated in these two
the

cases,

of deflation

one

ing prices of about the
nitude
of

the

fall¬

same

mag¬

recent period
rising prices, we

very

inflation and

12:40 a.m.

"NY-6" enters cutoff approaching Buffalo. Eastbound Century will have track #2 clear

may
come
to
have
more
con¬
fidence in future price
stability.
The
of

central

fact

the

period

falling prices from August, 1948
February. 1950 was that invest¬

ment

$13

business

billion.

This

fell

about

mx&i&m
*<?•*> V*' <<cwj;iwi<,j

primarily

was

WESTBOUND CENTURY

icav^a

X,""

investment in inventories. Thrust¬

ing past accumulated inventories
into markets, lowered prices a full
4%

and

half.

TRACK *Z

Such

by businessmen may

action

come

year

again.
In the
to

recent

period from 1955
American
business
in¬

1957

creased its investment

tures

for

new

plant

expends

and

equip¬
$29 billion to $38 bil¬

ment from

lion. This is

12:43 a.m.

Freight VLS-1," leaving Buffalo,

moves

out onto track #1

behind westbound Century

increase in invest¬

ment of $9 billion.

This advancing expenditure for
new

two

plant and equipment has had
important and remark¬

very

able consequences.

TRACK #1
r-f^/'/^vuz/AWM

FRIGHT "US-1

£yjpwroww^

Sees
The

Profitable
first

prices of 3.9%

March,

1956.

Protection

the
we

The

inflation

have had since
second

impor¬

tant

consequence is the substan¬
tial rise in the interest rate which
is so meaningful to the entire life

insurance

industry.

momentarily
as

may

"protection"

fundamentally coming from

earning rate
on

measure

fixed

the

interest

rate

investments, then those

12:46 a.m.

"LS-l," though running at 60 mph,

can

travel safely behind 80-mile-an-hour Century

Volume

That

Number 5656

186

tends

work

The Commercial and Financial Chronicle

in¬

toward

flation.
The

new

steel

force

plants
of

incomes

the

are

the

being built,

builders—the

pipe

workers,

plants until they are finished and
"turned

steam"

have

petes

larger

income

in the market for

goods

not

com¬

supply

accordingly in¬

yet

remainder

the

for

annual

increase

plant

new

1957

the

judicially assist¬
needed re¬
supplies.

money

rate

investment

about

seeds

last year. Clearly

At the

the inflationary
abate soon.

should
same

time
new

Family

has laid the
flourishing, growing
family income in America. In 1945
average family income was about
$4,000. That bought the necessities
of life, the prices of which were
scribed,

the heavier

plant made in

our economy

for

factory workers rose 20%.

incomes

1955

were

$5,520. By 1960 the average family
income will be, according to the
Twentieth Century Fund, $6,125

Thus in the processes I have de¬

compared to the increase of 28%
pressure

amount

the

1956

Rising Incomes and Insurance

10%

income in 1965 will average

year.

producing the

straint

equipment at the

and

investment in

then

ing

For example, from 1951 to
cost of living rose only
4% while the average rate of pay

for all

careful and very

pressure

plans of business for spending call

some¬

"throw the switch."

The

For

while

that

fitters, con¬
struction men, etc.—are being en¬
larged but goods do not flow from
the new factories and generating

one

result

towards inflation.

second

all the

The

creased.

(291)

and in 1965 the

original

tive estimate was

for

conserva¬

average

family income of $6,760. This con¬
servative estimate was first given

One

only

ing

rising incomes is taken, namely

increase of 40%, I am sure

gain he first gave in 1954 that we

after

stantially

As this particular step

insurance.

that

inflation

moderate

have

yearly income of $5,000 to
appreciate the enormous

come

capacity
rises by

very

the

which

insurance

size of the future market for life

are

$7,000.

measure

bought by fami¬
$7,000 of income
comparison with families hav¬

The gains in

authorities

life

family

that

and is being

can

lies which

by President Eisenhower in 1954.

monetary

needs

1956-1957 is completed, more sup¬ now inflated by about one-third.
plies of goods should be available By 1950 average family income
to
dampen price inflation.
The passed the $5,000 level with only

output have so sub¬
exceeded the' rate of

estimate

safely

can

the
insurance
excess of

buy life
something in
to

100%.
this

With

optimistic picture

should

give some idea of the
reliability of the estimates. Here
happfiy we have the first estimate
of rising national output in the
United States made by President
in

Eisenhower

estimate

New York

was

prepared and used approvingly by
President.

the

check

your

estimate

this

since

passed

speed of

was

jy J

The

At that time

1954.

prepared of total*
production in the United States
as
it could be without any rise
in prices in the year 1965.
Two and one-half
years
have

freight is doubled...

United

now

how

States

in the

are

well the
has done

economy

2 xk -year

able

period which has

elapsed.

as our

new

electronic "traffic cop''

happy to report that we
running almost a full 100%

are

ahead

makes two tracks do the work of four

laid

the

schedule

the

dent;

the

for

out

Presi¬

American

and of this factor of
safety of 100% only a very minor
fraction is accounted for by the
economy

which

inflation

modest

has

oc¬

curred.

the

Thus,

The New York Central has removed half the tracks
I

along

WESTBOUND CENTURY

indeed

of its busiest sections of right-of-way—163

one

Chase Manhattan Bank

miles of main line from Cleveland to Buffalo!

3JLJmmeJm

ahead

outlook

good.

Yet

COMM O DOR E VAN
COMMODORE VANDERBILT

today the

maintained

freight has

even

same

...

been upped to

electronic

ables

WESTBOUND CENTURY

minute for most

careful, confident auto-

Atlanta, Georgia 3
% bonds ma¬
turing Dec. 1, 1958 to 1^86, inclu¬

sive, was made Jqly 17 by a bank¬
ing group headed by The Chase

only two tracks for all the traffic it

en¬

once

took four tracks to handle.

The group won

the

efficiency

switching and signal network which

use

bid

bonds

ifc
F ft

new

of each train

is duplicated

master

on a

the position of switches

stations and passing tracks. A

...the situation at

single dispatcher

take in the traffic picture at

can

glance.
Quick switch

»!■ *-

FREIGHT

4—^

high-speed

iBTniiir :i

With

average

crossover

every seven

CTC automatically

3BE51

Jk.

A
AST BOUND

I'oVe'WWf&S

forth between the two main tracks, using
stretch is empty.

and

New

issued

and

whichever

Everything keeps moving—quickly

dependably.

'•

Cleveland to Buffalo is the
double-tracked CTC system
installations

are

your

Central. Ask

shipments

our

the

have the whole main

move

just

one

many rea¬

faster and safer

the

freight salesman about the other new

developments that can
at

progress

Chicago CTC-controlled.

Centralized Traffic Control is

mean

better service than ever—

the

under¬

Robinson-Humphrey Com¬

The

Inc.; The First National
Bank, Atlanta; First of Michigan
Corporation; The First National
Bank of Memphis; Courts & Co.;
Dick & Merle-Smith; Laurence M.

pany,

Bosworth &
Clark, Dodge & Co.; The
&

National

Southern

Bank, Atlanta; Roosevelt & Cross
Inc.; Shearson, Hammill & Co.;
William
Blair
&
Co.;
Brown
Brothers

Harriman

Co.;

C. F.

Childs & Co. Inc.

City National Bank & Trust Co.,
Kansas

City; Eldredge & Co. Inc.;

King, Quirk & Co. Inc.; Robert
Winthrop & Co.; First Southeast¬
ern Corp., Atlanta;
Hannahs, Ballin
&
Lee;
The
National City
Bank
of
Cleveland;
Newman
Brown & Co.

Bank
&

Inc.; Third National

Nashville; J. W. Tindall

Co.; Varnedoe, Chisholm & Co.

Inc.; Wyatt, Neal & Waggoner,

extra cost to you.

Route of the

Marks & Co.; Braun,

in the world. But

already

line between New York and

why

school, water,
municipal im¬

The First Na¬
tional City Bank of New York;
Smith, Barney & Co.; Blyth &
Co., Inc.; Harriman Ripley & Co.
Inc.; The Northern Trust Com¬
pany;
Harris Trust &
Savings
Bank; Trust Company of Georgia;
Phelps, Fenn & Co.; Mercantile
Trust Company; Equitable Secu¬
rities Corp.; Merrill Lynch, Pierce,
Fenner & Beane; White, Weld &
Co.; Carl M. Loeb, Rhoades & Co.

longest, most modern

Central. And by 1963 we expect to

sons

for

other

members

Other

Citizens

such

These bonds

State.

York

Co. Inc.;
'

writing group are:

miles along the main line,

switches passing trains back and

CENTO ft V

mmmm

and passing tracks located

U5T"

98.2276.

priced

yield
3.45%, according to
maturity and are legal investment
for savings banks and trust fund.c;
are

provements.

track pattern

the progress

from 2.40% to

will

control board. Colored lights glow on and off to show

£1G HT *'N Y-6'*

bonds

The

sewer

The

$15,465,000 City of

Offering of

Manhattan Bank.

^0^

your

Simply stated, CTC—Centralized Traffic Control—is

FREIGHT
>>>>> 'yss//'S/M

mile

speed of

directing of anew $6 million "CTC" system.
Wired for

and the

of the distance—thanks to the

matictraffic

Group Offers Issue of
Atlanta, Ga., Bonds

heavy volume of traffic is being

this stretch

H. P. Lee

"Early Birds'

—

Homer

is engaging in a securities
business from offices at 624 South

P. Lee

New York Central Railroad

Opens

MIDLOTHIAN, Texas

jltVl

IfTPPl

(

4:
24

The Commercial and Financial Chronicle

(292)

themselves

Is Britain Facing a

Crisis?

expenditure,
mentation of only

beyond extreme pessimistic expectations,
declares

observer

economic

that

gone

continue

another devaluation of

deterioration

economic

the

situation
the

near

criticized

Government

future.

Inflah i

addition

the

cently

re¬

was

tempo¬

imposed embargo on the
import
of
Canadian
securities,

rarily

slowed

there

o n

are no

down after the

any

Suez

gathering

Major

measures.

number

Radclilfe Committee will become

of unfilled

available, which will be sometime

vacancies

feeds
Paul

Einzig

that

t h e

u n e m-

ployed
indication

sure

—

inflationary

overfull-employment.

Instalment

credit is expanding in spite of the
recent reinforcement of the re¬

strictions

imposed

the

terms

of such transactions. In addition to

the

wages demands, many large
unions have put forward demands

The Government em¬
phatically disclaims any intention
year.

introduce

ture

ment

Autumn

Possibly there
tailment

Budget.

be some cur¬
capital expendi¬

may

the

programme of the Govern¬
and of nationalized indus¬

tries. It is

such

always

to reduce

easier

with a stroke
than to try to reduce
consumption. Judging by the latest
official pronouncements, the Gov¬
ernment still seems to rely mainly
programmes

the

The

measures.

40-hour

week.

this

pen

conceded it will either reduce the

demand will produce its inevitable
effect on the balance of payments.

futile efforts of exhortations

the

inflation. Un¬

to check

means

little

contained

the

fall

even

daily headlines

in spite

now,

Government

about

loans,

the

able

spot

The

Britain's

in the

gap

determination, 4

Unfortunately,
be ob¬
livious of the gravity of the situa¬
tion and the urgency of the relief
urgently

needed.

called

measures

G.I.T. Offers Debs,

economy.

balance 'of

pay¬

ments may be met by drawing on
the newly acquired dollar facili¬

Originally,
have

been

tention

But

securities.

such technical devices

available
trend

Canadian

check

the

markets

are

adverse

for

fixed

Already

the

Government

Loans

beyond what
simists
to

two

depreciation

has gone far
extreme pes¬

even

considered

until

possible. Until
decline

recently
montlwjr

3%% War
Loan below 70, or of V-k % Consols
belqw 50, was considered incon¬
ago

ceivable.

Whenever

their

quota¬

tion approached those figures the
psychological factor resulted in a
revival

demand.

quotations

Today

well

are

both

below

that

"limit,"
More

Dangerous Than Another
Devaluation

not

realized

that the decline in the

market,
would
than

entail

far

another

pound.
the

After

all
a

dangers

it
of

companies

Government

the

well

large proportion

investment

insurance
the

graver

devaluation

remember that
of

gilt-edged
continue,

should

banks

and

consists

securities.

is
true the average redemption date
of their holdings has been reduced
and short-dated

stocks
to the

are

medium-dated

not affected

same

extent

by the fall

long-dated

stocks. Even so, the decline in the

year

employers

to
in¬
en¬

have

making a determined stand
unwarranted wages de¬

It,

was

partly in order to

to withstand the

effect of

major strike on the balance of
payments that the recent arrange¬
ments for reinforcing the gold and

dollar

made. When

were

reserves

New
C. I. T.

Many

Corp., the

na¬

$100,000,000

debentures

sold

over

continuing period

The plan is unique because it is
customary for major securities
offerings of this size to be mar¬
keted at one time through a firm
purchase commitment by a group

series of debentures,

spokesman

for

the debentures of the

offered

The

employers

attitude

Opposition

the

Socialist

from

helpful.
There would be ample scope for
goading the Government into ac¬
tion

constructive
leaders

could

criticism.
establish

reputation

for

statesmanship

calling

the

rank

exercise
wages

demand

avoiding

file

and

self-restraint

crisis.

There

their

the interest

seven

prior to maturity.

re¬

The

ticular series which may be issued
and

sold

to the

is flexible,

subject only
$100,000,-

limitation of the

Commission, which became effec¬
tive July 12, 1957, stated that, at
the company's option and unless
sold out at an earlier date, the
offering will be a continuous one
running at least until April 1,

1959.

the Government

Party
act

were

ligently

many

office
ways

face

any

the

series

deben¬

being offered, to termi¬
offering of any or all se¬
and to add
or
substitute
series debentures of other series
which

the

may

be established in the

future.

intel¬
present

far have added sub¬

primarily

refund

other

and to furnish additional

debt

working

funds to C. I. T.'s subsidiaries.

I. R. Friedman

molds, tools and dies, the vari¬
component

ous

industries

must

HILLS,

Calif.

securities

business

1238 Coldwater

from

offices

Canyon.

(Special to The Financial Chronicle)

SAN
H.

terminal

and

possible.

about

connections

For example, it costs

$30,000

just

for

tooling a
single
large volume production
mold
for -one physical size and
style of

molded paper capacitor.

ideal

situation,

adapt

make

the

use

electronics
- not

industry.

only to the

course,

machine
low

cost

This applies
parts for

common

radio and television but for mili¬

tary electronics

well.

Some

MATEO, Calif. — William
is engaging in a secu¬

business

Second Ave.

from

offices

—

the

and

the

component parts industry, manu¬
facturers using highly mechanized
assembly equipment have reported
that the freezing of their designs
has
sometimes meant that they
not

which

use

newly produced parts,

would have

cost them

less

because of the inability of

money,

the machine to accommodate other
form

factors

nents.

or
types of compo¬
addition, manufacturers

have reported

great

"black"

little

pre-tested
which

assem¬

in many

reduced

manufactured

are

circuit functions

perform

usually

are

and

specified

terms of the

operating parameters
end'equipment. These have

being dynamic com¬
ponents, instead of a series of in¬
dividual
component
parts
with
their associated tolerances, which
not give the dynamic
required.

may. or may

responses
As

example,

one

for

cuits

deal

down time due to the problem of

company

number

been
developing printed cir¬

based

the

years

which

serve

plates,
dielec¬

the active

high

use

dielectric constant ceramic

tric of capacitors and as a base for

printed resistors and related wir¬
More recently, we have been

experimenting with extensions of
this t echnique to incorporate other
components

such

and

diodes

transistors to form self-contained,

plug-in
now

circuits.

oil lie

cost

believe

have sufficient

show

will

demands

new

been

that

conclusively

method

this

fullv

cases

the

complete

device bv

many

experience to

assembling

electronic

Drawbacks

Apart from the cost of deprecia¬
tion

shift

circuits,

cases

ing.

component parts which have been
supplied in the
billions to the

com¬

petitive, and in some eases lower,
than
the cost of producing the
circuit by

same

elaborately

mechanized systems.
of

Because
tion

lack

the

of perfec¬

of mechanization

equipment,
many
manufacturers,
especially
for short runs, still relv on inser¬
tion
of
components by a very
complex machine on which there
is no depreciation, which can be
readily obtained, can be set-up to
do the job quickly. I refer to the
skilled female worker who is the
backbone
tronics

most

elec¬

our

assembly lines.

obtaining parts with close enough
tolerances
without

fed

and there is the

tendency to pool
production so that the

machine does

pbt have

to be set¬

again for each minor variation

the

produetlbn

schedule.

Be¬

long runs- are required, this
meant, in''some cases, more
in-process inventory and, in other
cause

has

parts for ong assembly before

contro|; groups could ad¬

just the flow
and

of^ncoming material

component--parts. Even with
these disadvantages, and if no cost
saving can be£|'ystified, a signifi¬
improvement

of product

uniformity

might, in itself, justify

the cost and effort involved. This

very

ment,

particularly true of

complex^ electronic
lie

fthe

SAGE

some
equip¬

System

which will l?e used in our National
Defense.

From this it is obvious that the

Also, short production runs are
justified on a giant machine

weeks

Introduced Gradually

by machine

jamming.

not

may

Ferris

rities

inator

cuits, and the like.

shapes

cant

William H. Ferris Opens

circuits, flip-flop circuits, discrim¬

active

material

Irving R. Friedman is engaging in

circuit function.
The
processing equipment indus¬
try and the radio and television
industry have thousands of similar
subassemblies in the form of gate
specific

data

has

—

run

equipment is not a practical real¬
ity today) by using complex sub¬
assemblies pre-tested to perform

individually and severally stand¬
on
as
few practical sizes,

has meaPt inventory short¬
ages because the machine gobbled-

(Special to The Financial Chronicle)

BEVERLY

achieve the results of
machine,(since this

can

the short

ardize

cases,

Opens

they

the virtue of
enor¬

Net proceeds from the sale of
the series debentures will be used

they would
more

for

are

in favor

of
a
further
increase of
social
service expenditure continues un¬
abated. Conceivably if the Labor

as¬

investment in capital equip¬
ment which will also be required

can

ries,

the Government finds itself. Pres¬
sure

conventional

stantially to costs.
In 0order to minimize the

The registration statement filed
with the Securities and Exchange

evidence of such statesmanship in
the Labor Party today.
Its chief
is to make political capi¬
tal out of the difficulties in which

,000 over-all authorization.

concern

use

of the

The

nate the

far

for

which

said" would
design
series

July 15 will not be

Short Run Machines

boxes

blies have

distribution of the debentures.

the

gilt-edged market has materially situation. But, having committed

coupon

short-run

equipment in order to achieve the
uniformity which is desired.

insertion,

Initially, C. I. T. has established

tures

and

components

mous

contracts are looking
mechanization

sponsored
toward

addition of locating bars and slots,
all required to permit automatic

of underwriters.

ing

say

of the parts themselves, including
the length and spacing between
associated leads and terminals, the

time.

seven

stating nothing new when I
that government and privately

much closer mechanical tolerances

issued in various series and to be

therefore,

has,

Other manufacturers believe that

tion's largest consumer and indus¬
parts
and
material
must
be
trial finance company, on July 15
adapted to the machine and at no
instituted
a
public
offering of J i ncrease in
cost. Actually, the very

which

despair.

over¬

sembly methods. There is, indeed,
a
philosophy as yet unrealized on
many engineers and pro¬
duction people have been unwise¬
ly basing their overall cost esti¬
mates. This is the philosophy that

Type Bond Plan

Financial

moment

Government

labor, material, and

which

dangers of the situation will lend
courage of

include

automatic assembly equipment are
much
more
costly- than similar

C. I. T. intends to make avail¬
arrived,
however, on the occasion of the able maturities suited to the pref¬
engineering
and
shipbuilding erences* of purchasers and to vary
strike, the Government got cold from time to time the series of¬
and
the
feet and induced the employers fered
offering
prices
to settle the wages demands. After based on market conditions and
that retreat it will not be easy to the
company's requirements for
make
another
stand unless
and funds. The company also reserves
until realization of the imminent the
right to vary the price at

decisive

Socialist

sufficiently

this

earlier

courage

the

interest-bearing securities.

believed

was

Government's

showdown with the Trade Unions

ties, or by checking the outflow against
of capital. This latter device was mands.
recently applied against the ac¬ be able
quisition

the

paid

cycled to give the short run fea¬
ture desired.
I am certain that I

equipments.

for.

amount of debentures of any par¬

Retreat from Firmness

the

would

components for

deemable

very

few people seem to realize that
this has become the most vulner¬

true

mayhigh for some of the
elaborately mechanized assembly

but exhortations. Drastic action is

community
Salomon Bros.
&
Hutzler
has
by organized labor will continue been named
agent for the sale and

Long before that stage is reached unless and until the Government
the anticipation of a further rise and employers muster up their
in prices is liable to produce its courage to call a halt. And there
no
indications of any such
effect on the market for Govern¬ are
ment loans. Yet

the

assess

all

else

The plundering of the

heroic

for

head figures plus the cost of de¬
preciation of the assembly equip¬
ment. The cost of this depreciation

bear¬
rate of 4%% and
due on July 1 of each year from
output or it would increase the fortunately, in face of the recent 1960
through 1966. They are be¬
amount paid out in overtime.
In Government decision to raise the
ing offered at prices ranging from
either case ft would powerfully salaries of Members of Parliament
100%
to 99%
plus accrued bit¬
reinforce the trend of inflation.
and of Ministers, the preaching of
terest, depending upon the ma¬
stands
very
little
Although it may take months sell-denial
turity date and to yield 4.75% to
chance of making an impression.
before
this additional
consumer
4.89%.
-Ad.
the

for

accounts

a
The only way

television receiver.

interest

single
insertion
machines through which complex
electronic equipment can be re¬
been

labor

now

Prospects

Great

only about 8% of the price of

the Government appears to

be deferred until the report of the

once more ex-

Even

anticipation

Exchequer

in monetary policy are intended to

now

should

anization

changes

turn

The

manufacturers

critically reviewed.

present indications of

more.

m o m e n

once

ironies

undergo

gilt-edged market, but it was fol¬
lowed by a relapse when it was
found that a much-awaited speech
by
the
Chancellor
of
the

intendment to face the situa¬
a series of sufficiently

drastic

And Automation's

savings which
might result from increased mech¬

tion with

crisis

minor

page

of firm action
resulted in recently a rally in the

one

may

measures

t i

series

of inactioia
Although the
resort to minor

as being
complacency.

and

would

jrom

Thursday, July 13, 1957

U.S.-Canada Economic Momentum

Government
achieve temporary respite by

mere

attitude

Government's

The

acute

greatly

Quite possibly the
may

LONDON, Eng. — There is a reduced the reserves of most fi¬
growing
uneasiness
in
Britain nancial institutions.
an

would

spectacular increase.

weak, according to the writer, in
facing this economic danger.

possibility of

Socialists

the

the Government has been

the

to be utterly incapable of
cutting down or even keeping
down
public expenditure. Under

pound." Dr. Einzig criticizes the Chancellor of the Ex¬
chequer's policy of exhortation and the Government's policy
of being oblivious to the gravity of the situation. Suggests
showdown against unwarranted wage increases even though

about

Continued

seems

the

addi¬

the
imple¬
traction of

aggravate the difficulties.
Even
the
Conservative
Government

far
leading British

should

this

"would entail far graver dangers than

commitments

their

By PAUL EINZIG

Noting that the fall in British gilt-edged market has

considerable

tional

introduction
scale

mass
mous

automation

will

require

enor¬

total investment of minor and

skilled

man

and

power

must,

therefore, be a slow and gradual
process.
These changes may re¬
quire redesign of existing plants
the

construction

new

ones.

Lord Halsbury, an

ity
a

English author¬
industrial technology, likens

factory to

shed

its

a
shell

lobster which must
or

framework

order to grow,

"We must accord¬
ingly wait for a new generation
of factories

see

the full

conse¬

of automation." The net
effect on labor, he believes, is "in
the direction oi' increasing skill
quences

...

the

expense

the

un¬

skilled."
Our immediate

and of the
concerned
very

day

problems of to¬
future are
much with the

near

growing shortage of trained man¬
power while at the same time we
for increased output with

strive

Volume

Number 5656

186

The Commercial and Financial Chronicle

better
wc,

uniformity of product. How
in the electronics industry,

will

achieve increased

is the problem.

Kuhn, Loeb Group

production

Offers Inland Steel

I venture to sug¬

gest that, we will be able to com¬

bine the use of advanced com¬
ponents
and
subassemblies,
of
mechanization, and of automation
as it develops. By combining these
three elements, we will have a
powerful cost-saving system
the end than through any single

approach by itself.

43/s% 1st Mtge. Bds.
A

underwriting
group of 103 members headed by
Kuhn,
Loeb
&
Co.
yesterday

Before

1987,

par

Net

proceeds

the

from

sale

finance Inland Steel's construction

two countries.

that

accident

seems

respects

involves

used

help

improvement program which

and

of approximately

economies

the

will

as¬

tonishing decade-long growth. In
many

bonds

the

and

Canada

States have shared

United

our

315-ton

hearth

open

slabbing

new

ity

program

mill,

new

furnaces,

cold

new

estimated expenditure

$280,000,000 dur¬

ing the three-year period

approximately

425,000

furnace

iron

approximately
construction

production

300,000

net

general

building in downtown Chicago;
and development of
mining prop¬
erties and improvements to
plants

ending

series

issue

carries

annual

complemen¬

31, 1958. The program con¬
templates, among other things, an

mandatory sinking fund of
$1,500,000
principal
amount
of

tary, and each is the other's best

increase in the annual steel-mak¬

bonds

are

sinking fund at par and at the op¬
tion

each

July 1 from

1960

the

company,

interest

crued

beginning

est

steel

producer

case.

Its

which

produces

the

all

fourth

plant

producing

the

Field
at

their

have

will

Inland's

—

Association

annual

the

Club. A cocktail party

will be held
Oct. 9, at the

night,

Omaha Club.
Phil J.
&

Tierney, Harris, Upham
Co., is general chairman of the

Field Day.

steel

With Daniel D. Weston

United

(Special to The Financial Chronicle)

States.
For the

year

subsidiaries

its

had

consoli¬

dated sales ancl other revenues of

$731,768,000

LOS

1956 the company

and

net

income

ANGELES,

Urman

Weston &

now

Calif.—Ervin

with

measurably

have
own

of Boulevard, members of the Pacific
Coast Stock Exchange.

$52,999,000.

as¬

country's continu¬

ing industrial growth. I am aware
are frictions—that there

that there

modest

are

and

can

trade

which

barriers

probably will be adjusted
long-run advantage.
believe
that
time
and

'Jfyl

*k7

to our mutual

also

patience will give Canadians more
authority and autonomy in the op¬
eration of Canadian branches of
States firms.

United

Our nations and our economies

comparison

still youngsters in

are

of Europe and Asia. We
world have been able

-with

thisr

new

to select the best elements

into

democratic systems.

own

our

the

of older

skillfully build them

cultures and

10 years we have
partners in devising
and demonstrating to the rest of
the world a pattern and a record
of economic growth and expansion
which is surely unequaled.
We
Over

worked

have

past

developed

America

North

here

economic momentum

believe carries with it a

which I

decade im¬

great potential for the

mediately ahead of us.

Soo Line Glfs. Sold
Halsey, Stuart & Co. Inc., and
associates on July 12 offered $1,740.000 of Minneapolis, St. Paul &
Sault Ste. Marie RR. 4%% equip¬
ment trust certificates, series D,

semi-annually, Feb. 1,
I, 1972, inclusive.
certificates were priced
to

maturing
1958

The

Aug.

yield from 4% to 4.85%, according
to

maturity.
Issuance and sale of the certifi¬

cates

subject to authorization
Com¬

are

of the Interstate Commerce

mission.
The

issue

secured

300 all steel box cars

estimated to

cost $2,200,000.

Participating
in
the
offering
& Merle-Smith; R. W.

Petroleum Research

are—Dick

Pressprich & Co.:

Freeman & Co.

in an

orange grove

and McMaster Hutchinson & Co.

FIG Banks Place Debs.

In the heart of Southern California's

Here, scientists and engineers

carry

The Federal Intermediate Cred¬
it

offered

Banks

17)

yesterday (July
issue of approximately

new

9-month de¬
1957 and
maturing May 1,1958. The deben¬
tures are priced at par. It was also
865,000,000 of 4.20%

bentures, dated Aug. 1,

announced

that

The Far West—where the

orange

country, tomorrow is taking

form. Last
a

fall, after leveling most of

twenty-acre orange grove, Richfield

completed its

new

Research and

on an

unending search for

new ways

improve fuels, lubricants and

name

Richfield stands for

the best in

petroleum

petroleum refining techniques. They
seek also for

new

and better petro¬

outstanding

$11,000,000 of 3%%
Oct. 1, 1957
were
sold and privately placed.
Proceeds from* the financing will
be used to refund 865,000,000 of
3:?i% debentures maturing Aug.
maturities,

Development Laboratories.

chemical products, for

petroleum

debentures maturing

1957

and

for

lending

opera¬

Designed to keep
field's

pace

with Rich-

steady growth, this multi-

million dollar

project at Anaheim,

technology is

one

of man's most

swiftly advancing frontiers.
Richfield is proud of the

substan¬

fit.

tions.

The new issue is being offered
through
Jobrv T.
Knox,
fiscal
agent, and a nationwide selling
group of recognized dealers in se¬

California, houses the most advanced

tial contributions its people are

laboratory equipment obtainable.

ing to

progress

in this field.

mak¬
MKMMWWW

curities.

Opens Investment Office
Sybil

Trubin

engaging

securities business from
140

West

86th

Street,

City.

RICHFIELD

offices at

New

York

Ol L

CORPORATION

Daniel D.

Co., Inc., 9235 Wilshire

United States capital has played
significant role in Canada's eco¬
Canada's raw

sisted

nomic development.
materials

Frolic

Thursday, Oct. 10,
Happy Hollow Country

Day

customer.

Day

The Nebraska

Bankers

Investment

United

largest

OMAHA, Neb.

Wednesday

Indiana Harbor plant,

States.

steel,

each

Steel is the eighth larg¬

Inland

Hold Fall Field

redeemable for the

July 1, 1967, at redemption prices
ranging from 103lfe% to par two
years prior to maturity, plus ac¬

and
K

Neb. Inv. Bankers to *

The

each of such years.

during

bonds will be

and facilities.

The

option may redeem an addi¬
$1,500,000 principal amount

v*25

tional

tons;
office

Dec.

the two countries

through 1986 and the company at
its

net

tons, and additional sintering fa¬
blast

well

enjoyed

improvement

cilities which Will increase annual

July

the

now

and

includes construction of three

and

due

refer back to the state of financial

being

tion

rolled mill, with an initial capac¬

accrued interest.

like to

closing, I would

ing capacity of Inland's Indiana
Harbor, Ind., plant of approxi¬
mately 800,000 net tons of ingots
by the end of 1958, raising the
annual capacity of the plant to
6,300,000 net tons. The construc¬

(July 17) offered to the public
$50,000,000
of
Inland
Steel Co.
first mortgage 4%% bonds, series
K,

Complementary Economies

nationwide

(293)

leader in Western Petroleum Progress

The Commercial and Financial Chronicle
26

Thursday, July 18,

195 <

(204)

Syndicats Outing June 28
At Nassau Country

<
''■'/*/>& "7 '
'
v-y
/v.-vv//v //£ / /v.'a/s/sS/sss.Vss.v,/,.v/.v.vJv.v/V ..hv.v,,../.•.r.v./Ar./s.

The
Street

June 28th at

managers,

held

their

annual

outing

Club, Glen Cove, L. I.,

the Nassau Country

sponsorship of Robert C. Dunne, Purcell & Co.,

under the

and Edward

Schoenhof, Lehman Brothers.

of officers, held the same day,

At the annual election

Herrington, Smith Barney & Co., was named

McDonnell, Blyth & Co.,

President for 1957-58, and Mae

Inc., Treasurer.

wmmmvw;;

• ;

Syndicats, association of the secretaries of Wall

syndicate

Gertrude

Club, Glen Cove, L. I.

'%"*

;

-r,

Winifred
,

Lees,

Kidder,

Peabody

Co.;

Edith

McGill,

First

Boston

Corporation

W
■w*m/
-<

■

•/- -1

!
»

rmt **#

('1

:mipS0m
IB

00m
■

MVStf&jtotl'

mMmMrnmmm
Ruth

Mary O'Rourke, Reynolds & Co.; Claire Borick Friend, Blyth & Co., Inc.; Elayne Whalen, Blair & Co.
Incorporated; Gertrude Herrington, Smith, Barney & Co., Lillian Neylon, Harriman Ripley & Co., Inc.

McDonnell, Blyth &
Kutli

Ainsworth, Halsey,

Inc-t treasurer; Gertrude Herrington, Smith, Barney & Co., president;
& Co., retiring president; Marion Lynch, F. S. Moseley & Co.,
retiring treasurer

Stuart

Ainsworth,

Virginia

jffk
"talm
</Z

„//r.

<fc Co.; Dorothy Boardman, Eastman Dillon, Unicn Securities & Co.;
Lynch, Pierce, Fenner & Beane; Ruth Curtaine, White, Weld & Co.

Halsey, Stuart

Smithers,

Merrill

Elayne Whalen, Blair <£ Co. Incorporated; Peggy Cronin, Lehman Brothers; Marion Lynch, F. S.
Moseley <fc Co.; Kathryi* McCarthy, ~~Wm. A. M. Burden A Co.; Anne Enright, Shearson, Hammill
<ft Co.; Marguerite Kascle, Riter A Co.
'
r.

Volume

Bullis

5656

Number

186

The Commercial and Financial Chronicle

Continued

Optimistic

quate

measures were recommended. Coal

coal-hauling equipment

industry leaders, officers of the
association and the association's

its vital place in the nation's economy persist in aggressive demands

recognition is here
given to some segments of the
transportation industry for their
accomplishments in this field.

ment.- Proper

the

The outlook for business for

remainder

calendar

the

year

good, says Harry A. Bullii,
Chairman of General Mills Corp.
1957 is

total

The

Advisory

Pro-

Presidential

Committee._jon

Energy

dollars

sued Feb.

26, 1955, very

staff

have

energetically endeav¬
implementation of
those recommendations along with
the multitude of other tasks they
must perform.
They have held
ored

and

for

all

...

conferences
„

well

and

taken

lenge.

for

recognize

mentioned

industry organizations, we will
continue to disseminate the facts
concerning " ~ industry and fi¬
the
A— ~m* "
nally overcome the factual and

the steps that must be

psychological obstacles that now

action.

matters I

among

who

coal

have

meet

its

stand in the way of complete rec¬

chal¬

ognition

To do the job successfully

in the interest of the

trans-

public

commu-

producer,

must have a consol-

coal's

importance

interested Executive depart-

NEWARK, N. J.—Frederick W.
Schwarz is conducting a securities

Na-

try viewpoints and efforts.

business from offices at 606 Sum-

ments and agencies of the govern-

mer

Ave.

expected by

the end of the

While

year.

the first quar¬
ter lull in eco¬

nomic activity
has practically

reached
and

gener¬

ally satisfac-^'
:tory;rate of
gain is in
prospect, there

A. Bullis

Harry

inflation

threat

the

period ahead, he
said. Defining inflation as "rising
prices,".it looks as though we will
continue to have mild inflation',
It would appear

are-bound
some

that

Bullis said:

rates

money

continue

time ahead.

high

for

Continuing, Mr:
•

♦

plant

and

"Expenditures

for

"oouipment shoidd reach a
high of #37.9 billion annual
Tor

the

this

third

quarter, and

new

rate

while

record-breaking rate of in¬
be slightly checked

vestment may
in the future,

will

the supply of goods

increased

efficiency
incomes

increased

with

production.

growing.

are

Family
In

1945,

they averaged about $4,000.
In
:]9.r>5, they wbre $5,520. By 1960,
-it is estimated, average
■comes

will

family in-

around $6,125,

:bv 1965 around $7,000.

and

Consumers

will have money to spend.
r

•vation

continue
new

•methods-

which

■factors-in
•

l,_r

"Research, invention, and inno-

•products,

new

compelling

are

We-should

progress.'

the

realize

•develop"new

processes, and

indescribable

almost

technological revolution, or rather
"evolution, in which we presently
find ourselves. This evolution will
•do

to change industrial

much

life
the
•people. While ihe new technology
is being mastered and developed,
; there will be adjustments in various industries, but our people like
this economic development, and,
-and

the

expand

fortunes

FOR AN ADDED VACATION

•

spite

-level,
:the

serious

for

be willing
prosperity.

VISIT THE ANACONDA

•

HARRISBURG, Pa.—The Pennsylvania Bankers Association will

hold its annual summer

University,

divided

tions"

and

school at

into

"Bank

TONS OF ORE INTO

AnacondA

PRODUCTS.

Company

easy

drive of Yellowstone

Park's scenic splendors is

spectacular facet of America's rich heritage. It's the famous
Anaconda Reduction Works at Anaconda, Montana, 26 miles northwest

another

plans if you're heading out
waterfalls and panhandling
at Anaconda will join them as memorable high¬

of Butte. Include a visit to Anaconda

Yellowstone

way.

your

Andes Copper

A contrast to majestic

bears, what you'll see

lights of

The American Brass Company

Anaconda Wire & Cable Company

Chile

"Bank

Opera¬

Lending"

sec¬

You'll

see

Anaconda Aluminum Company
Anaconda Sales Company

electrolytic reduction plants, that
Anaconda Reduction Works one of the foremost operations

the concentrators, smelters,

have made the

International Smelting

will be held

the five days.

Bingham, Walter Adds
(Special to The Financial Chronicle)

LOS
G.

ANGELES, Calif.—Ronald

Bishop has joined the staff of
Walter

621 South

Spring Street, members

the

change.

Pacific

Coast

He was

Hurry,

Inc..

Bingham,

Stock

Ex¬

previously with

Boren & Co.

and

Refining Company

famed "Big
Stack," higher than the Washington Monument, from whose base
by a
system of electrical precipitation — many tons of valuable material are
reclaimed from furnace gases, You'll see batteries of giant rod and ball mills, able to grind more than 40,000
tons of ore to sand-grain fineness in a day, and molten copper pouring from converters and casting furnaces.
These, and other facilities you'll see at Anaconda will, in a typical year, contribute to America's economy
some 260,000,000 pounds of copper, 160,000,000 pounds of zinc, thousands of tons of manganese, sulphuric
acid, superphosphate, mixed fertilizer and other varied products.
,
•
of its kind. Towering over

all like a sentinel, you'll see the

tion, four hours of classes for each

Mining Company

Copper Company

Greene Conanea Copper Company

trip.

Lewisburg,

The school will

18-23.

Pa., Aug.
•

The

WHERE MODERN METALLURGICAL

MANY USEFUL METALS AND CHEMICAL

indeed."

Pennsylvania Bankers
Summer School in Aug.

Bucknell

MAGIC TRANSFORMS MILLIONS OF

Within

;

COMPANY'S REDUCTION WORKS AT

ANACONDA, MONTANA

prospects

long-range

look very good

pay

Unles.s

international

the

complications

unforeseen

..develop
scene,
the
•

America the

see

mildly rising price

seem

price

THRILL

•>;

;

•

.•

*vX

you're in Montana, at Anaconda,
Falls. At many of the Com-;
pany's facilities you may take expertly guided tours, above ground and below. We're sure your Visit will give
you a new pride and appreciation of your America the Bountiful.

The Anaconda Company

Great Falls,

Butte,

extends

cordial invitation to "come see us" when

at the Anaconda

F. W. Schwarz Opens

nications to the Executive Office, idation and coordination of indus-

the

the nation's economy.

gen-

erally, the consumer and the coal

documented

are

those

appropriate

The

secure

numerous

mittcd

try

tional Coal Association has been
appropri- ment and the Congress in attempts and will continue to be the rally-

Supplies and Resources Policy is-

duction of 440
billion

Report of the

Gross

National

recommendations

responsible for providing

and

portion of the revenues from in¬
creased rates to
the acquisition
and maintenance of such equip¬

better.

are even

report's

been effectively prosecuted
the Administration. Nor will

it likely be done unless the indus-

supply

should at least devote a fair pro-

long-range prospects

ing point for that consolidation
and coordination. This has been
made possible by the unremitting
effort of the association's committees. I have mentioned some of
them. All of them are entitled to
a
proportionate
share
of
the
credit. In cooperation with other

have

ately pointed up some of the coal
industry's
problems.
Remedial

adequate

good and, barring un¬
complica¬

the

tions,

Not-

action.

motive

car

Those

international

foreseen

favorable

secure

the

Challenge

power.

Chairman claims

the business outlook for balance
of 1957 is

Coal Faces

Balance of Year
Mills'

page

withstanding the diligence of the
industry representatives, none of

On Business For

General

from

(295)

Aluminum Company planted Columbia

The Commercial and Financial Chronicle

(296)

Continued

from first

avy's

page

Thursday, July 18, 1957

conclusion

chemical

stocks

in
in

the
the

case

1908-1937

period. This

Our

Reporter

Governments

By JOHN T. CHIPPENDALE, JPv.

able

There is very little breadth to the

bonds.

exempt

market because

continues to be rather limited.

The

the view that while a
ratio is not considered
to be an advantage
Two pioneer studies in 1945 and even in the case of growth stocks
that it is largely ignored "when
19461
appeared
to
suggest that
company
is considered to be
distributed earnings were worth a
highly dynamic."
as much as four times as much as

still

refunding is

Treasury

to be announced

expected

very

will

shortly (probably today, 7/18), with the talk now that there

expressed

low payout

investor

since

retained

split offering, consisting of a short certificate that might be
nine months or less, and a one year maturity. The shortest issue
be

The

one

year

offered

This formula

probably be reluctant to do.

belief

that

with

Humphrey, testifying before the
Committee, indicated that he is opposed to any
the discount rate at the present time.
Also Mr.

Humphrey,

economists

have

since

also

been

future

the

of business

course

than

long time

may have changed dur¬
ing the test period 1908-1937. The
concept of the growth stock can¬

but

this

that

dividend

payout is

less

than

%, V
(E) and where the

is less than

than

payout

V will

(E).

market

with

dated

precision

any

certainly

was

years

many

after 1908.

to the effectiveness of con¬

normal payout

full payout the value according
the

10 (3
the

made

reinvested

over

Notwithstanding
for

has

this

proposed
stock

common

evidence,
a

formula

valuation

which the impact of the dividend

is closely related to
the relationships between the rate

payout ratio
of return

(for
and

the

formula follows:

would

10,

attitude

ought to

be.

growth stocks of earnings retained
and earnings distributed.
What

Growth

The definition of

Stock?

growth stock

is not easy. It is not

simply

whose

risen

price
can

has

the stock of

earn

stock

company

high return

investment.

greatly.

growth

The

on new

railroad

industry is certainly not consid¬
ered

tics

investor

capital

This study will
determine what

versa.

will be concerned solely with the
relative impact upon valuation of

able to

formula^ would be 40, or

+ 1), but with a zero payout
value

attempt

defined

D + —
V

vice

Neither

of %, then with

not

additional investment

particular corporation)
the market capitalization rate.

The

tinually rising interest rates in view of the high tax rate and the

was

not

dividends

If a stock is expected to earn
$3 and if the multiplier is 10 with

prevailing belief that business will continue to be favorable for
an
extended period of time.
The discount rate has in the past
been a penalty rate, but this has not been true for a long time.
Borrowings from the Central Banks by member institutions have

price

earnings.
Walter^

observed

will exceed M

minor amount of opinion in the

now as

expected
multiplier, and

value, D

the

payout

market for

money

will

when

is going to depend upon
strength of the

continued

Central Bank Borrowings Meager
more

was:

formula yields the same results as
the
traditional
approach
only

price-wage spiral.

There has been

valuation

the

dividend, M =
E = expected earnings.

and the

attitudes

not

fer

Federal Reserve Board will be changed

p^ption

M(D -f >/;E)

Where V

is well known that White
the opinion that Federal
Reserve credit restraints over the last two, years are beginning
to have a marked effect on the economy. To be sure, the answer
as
to whether or not the restrictive monetary policies of the
Mr.

than

House

This formula
V

factor

dividend

coordinate

earnings

process.

Humphrey told the Committee, he felt high interest rates can be
''overdone." These statements undoubtedly reflect the thinking of
more

suggested in the

was

the

should have

Finance

increase

some

investor

The present study will be con¬
by Harkavy in the study pre¬
viously mentioned.4
For the cerned, then, with investor atti¬
tudes
toward
Cowles
Chemical
Stock
earnings retained
Index,
1908-1937 he found a high corre¬ and distributed at a given moment
will
not attempt to
lation (0.78) between price-earn¬ of time. It
ings ratios and dividend earnings determine whether earnings re¬
ratios.
This
is
to
say
that for tention is or is not a cause of
chemical stocks which have had a growth.
Indeed
Harkavy
has
strong growth trend it appears demonstrated that it is growth
that any given time investors pre¬ that causes earnings retention and

"Security
Analysis"2
in
a specific formula to
express the relative importance of
earnings retained and distributed.

of the Treasury

Secretary

that

ratio

1951

Humphrey Feels High Rates Can Be "Overdone"
Senate

changed

there

suppose

classic

ing with short maturities, it is hoped the amount of the attrition
will be kept down. A medium term maturity has also been men¬
tioned, but this would most likely have to have a 4% rate which
the Treasury would

have

Indeed

reason

the impact of the payout

measure

lim¬

was

Dodcl in the third revision of their

to 3%%, depending on the maturity.
certificate rate being guessed at is 3%%. By stay¬

rate from 3%%

carry

Graham and

sample

attitudes

1937.

Apparently the first attempt to

earnings in utility com¬

stock valuation.

mon

the

single industry and, in
addition, it is not impossible that

impact upon valuation of distrib¬
earnings as compared with

investors

growth

uted

Accord¬

ingly, the day-to-day price movements in these securities is
mainly a professional operation.

described

But

retained earnings.

government

investors interest in these obligations, aside from

maturities,

shortest

the

reasonably
stocks.
ited

improved tone in the government market is still attribut¬
the better showing being made by corporate and tax

The

appears to be the only
study of the relationships of priceearnings ratios and payout ratios
of a group of stocks that
may be

Relative Value oi Earnings:
and Distributed

have

even

turn

growth characteris¬
the rate of re¬

though

earned

been small

(0 + 1).

kind of

then, that $1 of earnings paid out

new
Where D is cash dividends, E is
capital in¬
earnings, Ra is the rate of return vestment has been quite high. The

<^nd, as long as there is no important increase in this
loan,^there does not appear to be real need for an increase

in the discount rate, even though the Treasury

consistently
time

the

above

Central

Bank

bill rate has been
borrowing rate for some

discount rate,

indicate

as far as the current monetary policy of
be is concerned, has been used to confirm or to

tion

and

not

penalty rate. Also, it is evident that as long
continues in full force, there will cer¬

tainly be

Cowles

Treasury to keep the discount rate at the present

Higher Discount Rate Not Ruled Out

discounts

and

making
be

bank

some

if there should be

sure,

advances

with

the Federal

out of

important increase in
Reserve

Banks,

after

allowance for the seasonal loan demand, there will

upping of the discount rate.

This would most likely result

rate,

now

have further adverse effects

ratio

was

tunity

at 4%, leading the parade.
doubt but what higher

1871-1937

low.

increase in the rate structure for all loans, with the prime

There

other

ing amount of the
reinvested
,

ury

bonds

Reports continue to indicate that
money

are

There

from savings bond cash-ins

are

still the leading investment media for this

several

the

because

profitable

Growth

being

oppor¬

expansion

Mr. Humphrey's

real

stocks

their

contradiction

directly

vary

payout

ratios

while

with

over

of time greater price ap¬
preciation will be associated with

Treasury Bond Price Level

lower

had

50-year government bond at this, bears out what the market has
been saying about these securities.
that

bonds

could

ignored either, since it would not take

very

bottom

much of

cannot

Wellington Hunter Assoc.

the

branch

office

336

East

43rd

Co.,

Monica Boulevard.

Street, New York City, under the
management of Kennedy Board- ously
man.

with

Co., Inc.

Daniel

total

investment

has

low and the

observed

greater

that when¬

than

the

lower

considered

have

excellent

high return on
repeated increments of new capi¬

prospect to

earn

the dividend payout ratio
tal over an extended
higher will be the valuation.
Under these circumstances a divi¬ period of time.

the

indefinite

generally taken
that the payout ratio
less important role in

ital

investment

Capitalization

(Ra)

rate

16.0%

assum¬

100.00

the

growth

valuation

and

that

undistributed

effect

earnings
"deposited" to the

non-

this

assumption is valid it is clear that
in

the

case

lower

ratio

growth companies

the

dividend

payout

the

higher the valuation.
The premium on such low payout
growth stocks

increase

dividend

in earning

power.

The stocks included in the

ple

were

cluded

open-end
whose

sam¬

simply the stocks in¬
the portfolios of two
investment companies

announced

investment

ob¬

jective is long-term appreciation
through
holdings
of
common
stocks considered to have growth

could be regarded
price of the privilege of characteristics. In both cases the
"depositing" undistributed earn¬ term "growth stock" was included
ings at the high marginal rate of in the name of the fund. Presum¬

the

return earned

Whether

stocks

term

near

rate.
A high price-earnings ratio
apparently that
may reflect temporarily low earn¬
owners of corporate stock
regard
ings or a high degree of stability
the corporation as a sort of bank

It was assumed

by the corporation.

this

assumed

investor

attitude is rational is not the sub¬

ably these stocks were selected
by fund managers because they
considered (correctly or in¬

were

ject of this inquiry. The purpose correctly) to be growth stocks.
buyers
of
open-end
this study is to determine, if Moreover,
1
Valuing Utility Earnings Distributed possible, whether in the case of funds at least are given an oppor¬
and Retained, Hugh
Pastoriza, Analysts
growth stocks investors do in fact tunity to scrutinize the portfolio
Journal, July, 1945. Factors

Influencing
Utility Price Earnings Ratios, Harold H.
Young, Analysts Journal, Spring, 1946.

9640

and
3

Santa

as
•

return

been

BEVERLY HILLS, Calif.—Donavon R. Wallace is now connected
Boren

growth stocks. Graham and Dodd2

Joins Boren Co.

with

Nevertheless

rather

valuation

than

change in

fSpecial to The Financial Chronicle^

Wellington Hunter Associates of
Jersey City, N. J., has opened a

been

played

economic conditions to bring about easier money rates.

Opens Branch in NYC

payouts.

for granted

On the other hand, his opinion

government

and

capitalization rate.

credit of the stockholders.

any given time
price-earnings ratios of com¬

mon

money.

statement that the Treasury could not sell

It will
ever

are

Stocks

period

Humphrey's Views

investment

market

payout

asserting that

the

stocks, although fixed income non-Treas-

common

the

of the

increas¬

for

and

words

low

for

Treasury because this would most likely accelerate the redemp¬
tion of these bonds.

additional
the

sam¬

but the growth in share price was
not caused by low payouts.

interest rates would also

the saving bond program

Index

growth stock is one that is widely
regarded by investors as having
hibit the greater price apprecia¬
growth characteristics. It is prob¬
ing full dividend payout 8.0%
tion. But his studies of individual
ably
true
that
generally
such
The
suggested formula would stocks are characterized by low
companies indicated that retention
at yields
of income was not the cause of produce the following values
and
high price-earnings
varying dividend rates:
ratios.
But clearly not all stocks
outstanding
price
appreciation;
I
Dividend
Valuation
with low yields and high pricethe crucial factor was considered
4—
50.00
to be the profitable utilization of
earnings ratios are considered to
3
be
62.50
investor's funds
growth stocks by investors.
since
in
many
2
Low yield may be merely a con¬
75.00
cases there was little
appreciation
1
87.50
even
where payout
sequence of an expectation of a
ratios were

spite of Secretary Humphrey's statement that he is op¬
posed to an increase in the discount rate at this time, there is
considerable opinion around still that the Central Bank rate will

For

small

porations
retaining the greater
proportion of earnings tend to ex¬

level

the way.

times

But the precise definition of a
dend reduction or omission would
avy* demonstrated, (1) that at any serve to increase the value of the growth stock is not at all essen¬
We are concerned with in¬
The following illustration tial.
given time, there is a tendency stock.
lor stock prices to vary directly would
to be reasonably vestor's attitude toward the divi¬
appear
dend
factor
in
stocks
that
the
with the proportion of earnings typical of growth stock:
investor regards as growth stocks.
distributed, and (2) over a period Earned per share
$4.00
This
of years, the stocks of those cor¬ Rate of return on new
simplifies the problem.
A
cap¬

of 3%.

be raised after the refunding operation of the Treasury is

influence

four

Standard and Poor Indexes, Hark-

Also, the highest rate the Treasury can presently pay on its
borrowings is 414%, which does not give them too much leeway
at this time.
Therefore, it would seem to be to the advantage
the

price

All-Stock

period

lowering of the Central Bank rate. It is well known
that the Treasury will have to come into the market very soon
to refund the August maturities, and the government does not
want to pay higher rates on the securities it will offer in exchange
for the maturing ones than it has to.

exerts

suggests,

ple of paired stocks.3 In a more
comprehensive study based on the

the wage-price spiral

market

ent author based

continuation of the program which has been in opera¬

formula

opportunity for
investment
at
It should be noted, however, that continued
high
great as $1 of earnings not dis¬
Rc
is
the market
marginal rates is considered to be
capitalization
tributed.
rate adjusted to a 100%
payout limited. Perhaps a growth stock
This conclusion was subsequent¬
is the stock of a company that is
ratio.
ly verified in a study by the pres¬

Treasury Favors Unchanged Discoxmt Rate
the powers that

dividends

now.

The

was

previ¬

Weston

Security Analysis, Benjamin Graham
David Dodd,
McGraw-Hill, 1951.
Dividends
Market

mercial

Versus

Force,

and

Retained

Financial

Earnings
Burrell, ComChronicle,
Aug.

21, 1952.
4

Retained

Prices,

Finance,

Oscar

•

Earnings and Common
Harkavy, The Journal of

September,

1953.

place a value on the dividend that
is independent
of the earnings

such

funds

and

reasonable to suppose

not

un¬

that buyers
factor. General observation indi¬ of these funds generally accepted
cates that prices of growth stocks the idea that these portfolio stocks
had growth characteristics.
are positively related to dividend
The
payout ratios.
This was Hark- hardened cynic may consider that
the stocks were selected by the
5 Dividend Policies and Common Stock
fund. managers not on the basis
PricesJames .E. Walter, Journal of Fiof a belief that they were in fact
nance, March, 1956.

Volume

Number

186

5656

The Commercial and Financial Chronicle

Low Payout—
Smith, Kline and French

shares would

fund

to be

growth stocks.

view

correct

were

Even if this
would

(Charles) Co.

companies

Merck

consider

positively rather

Pfizer

growth stocks but rather that they
were stocks that buyers of invest¬
ment

Co.

have

Eastern

Reynolds

accepted quite
having growth char¬
are

Gustin

acteristics.
Method

Study

But this would

there

Oil

Gas

precisely

describes

methods

the

1956

Shares Inc.

portfolio
tors

June

tne

and the Aug.

Stock

number

oU,

31, 1956

Massachusetts

Growth

gross

Inves¬

Fund.

items

Tne

these

two portfolios was 122. From this
list was eliminated (1) stocks of

companies

earnings
in

which

for

estimate

the

November

1956

available

was

1956

consistently
tion to

rate

not

was

included
able

payout
in

stock

rather

than

higher

sold

Details

group.

the

rela¬

table

shown

are

below:
Low

Payout Payout
Mean

ratio—

payout

Median
Mean

payout

price

Mean

63.8%

earnings

price

for

The

rather

23.5%

remained

(2)

sample

stocks.

varia¬

This Week
While
there

are

moves

industrial

all

Insurance Stocks

—

price

period, it is not un¬
relatively concerted

for

common

groups

differences in

some

over a

For

moves.

evidence
clear.

the

higher

associated

price

with

earnings

the

lower

ratio

payout

In these instances the

stock.

were

not

great

dif¬

and

are

probably due to imperfect pairing
differences

investor

ap¬

praisal of the quality of earnings.

here

The

14.4%

When the entire sample was ar¬

3.2%

in quartiles according to
payout ratio, the mean and median
yields and price earnings ratios
were as shown in the table below:

seems

payout ratio

ranged

Quartile 1

Quartile 8

Quartile 2

Quartile 4

Low Payout

tnere

Dividend payout ratios and

payout

the

3.2%

:
_

cash.

duplications

the

15.2%

ratio

earns,

Yield

49.8'%

ratio

yiei.t

Median

43.8%

70.5%

20.9%

ratio

After these eliminations and after

allowing

many

payout ratio within, each

ferences
High

pay¬

regular dividend

clearly indicated

than

indicated

tions in

earnings than did the low

Merian

Stock
Guide, and (2) stocks of
companies whose annual dividend

other

are

in recent
The relationship of higher price- years
the oils have enjoyed; a
earnings ratios with higher pay¬ price action trend pretty much
Results of Statistical Analysis
out ratios was consistent. In only all their
own; as have the chemi¬
The high payout group rather
four cases out of the 14 pairs was cals. And to an
important degree

portfolio of Growth Industry

stocks

Canada

By ARTHUR B. WALLACE

oversimpli¬

group.

Motor

Bank and Insurance Stocks

example,

Chicago Pneumatic Tool

(1) The sample of growth stocks
Was

ratio

Ford

and

data

analysis used:

That

variables

Paper
Caterpillar
•
Radio Corporation of America

Metal

Bacon

Sutherland

outline

stocks

believed

are

Mfg.

Airlines

Shamrock

following

that

High Payout

Mean payout ratio

36.0%

48.7%

54.8%

73.3%

Median

38.5

49.5

54.4

71.1

2.8

3.4

4.0

3.7

3.0

2.9

3.9

3.7

ratio

13.9

17.8

14.5

21.3

price earnings ratio

12.8

16.8

13.8

18.1

payout ratio

negatively

growth characteristics.
In¬
deed, the identical dividend yields
on the two
groups might suggest
that investors pay little attention
to anything other than dividends.

Skelly
The

than

valuation

fication.

support the conclusion that these
as

Union Carbide

only

portfolio stocks

generally

(297)

the utilities
the banks.

together;

move

But in the fire-casual¬

insurance

stocks

find

considerable amount of divergence

within

hope

for

but a highly
education, this being
acquired at the expense of under¬

anything

expensive

writing earnings, with consequent
price

poor

action.

Then there
to

risks.

These

their

see

stock

hope

keep pace with
chips." And what makes
blue

fall

must

cannot

stocks

the "blue
a

units that appear
with vol¬

of writings than with quality

ume

are

concerned

Probably

chip?

back

the much used

stocks word
"Management,"
for
it is
over a fiveto ten-year span do management that is primarily re-*
very well marketwise;
others do sponsible for what goes into the
operation of an insurance com¬
relatively poorly.
the

There
for

this

Some

group.

are

number

diverse

showing.

reasons

pany.

But let

Take a

look at the list to see

past what individual stocks did in the
five years ended Dec. 31, last, and
seven or eight years had written,
proportinately, a large volume of in ten years to that date.
extended coverage (and there are
Price Changes*
such
units).
Assuming that its
10 Yrs. to
5 Yrs. to
writings are. well distributed geo¬
12/31/56
12/31/56
graphically, such a company would Aetna Insurance™.™.
+
29%
5%
which

company

the

over

—

price-earnings

ratios

then

were

Mean

yield

computed for these 80 stocks. The

Median yield

earnings

Mean

used

average

justed

per

years

estimate

weighted

earnings

(ad¬

1954,

the

1955 and

for

Since

1956.

price

Median

capitalization)

present

for the
&

the

was

It is

earnings

evident that

tended

payout ratios

to cluster in the 40%-50%

recent

range.

to be

high

payout

with

clear that really

remote

earnings, the weights as¬
signed were one for 1954, two for
1955 and three for 1956.

The divi¬

dend

computed

payout ratio

was

dividing the annual dividend

rate

the

earnings

weighted
average
the three-year pe¬

for

riod. The

price-earnings ratio was
computed by dividing the Oct.
31, 1956 closing price (or bid price
in

the

unlisted

case

stocks)

and

seems

rates

associated

are

price earnings ratios
really low payout ratios with

low

third

quartile on payout
price earnings ratios

had

only

with

the

high

earnings were considered
more significant than more

the

ratio

higher

little

lowest

than

stocks

payout ratios.

Finally, the 80 stocks

that

were

ar¬

ranged in quartiles, according to
price-earnings ratios, and median

period have experienced
not only
the devastation caused
by the hurricanes that visited the
high-value areas of the northeast
coast, but its losses from tornado
visits. These are costly, for there
of them. Well over
600 have been reported thus far
in 1957, and this year is likely to
hang up a record in numbers.
are

While

many

tornadoes

tne

hit

seldom

price earnings ratios. But it
high-value areas their numbers
is equally clear that the relation¬ and mean payout ratios and yields
make up for any lack in that con¬
ship between payout and price computed. The results are shown
nection.
earnings ratio is not linear. Stocks in the table following:
Further, property owners are
1st Quartile 2nd Quartile 3rd Quartile 4th Quartile
becoming more extended cover¬
age-minded, and this is part of
Mean price earnings ratio
16.8%
10.0%
13.7%
26.5%
the
reason
for
the
deplorable
24.3
16.9
13.8
10.1
Median price earnings ratio
showing of that line in recent
Mean payout ratio.
56.3
60.7
45.1
50.0
years.
Of course, some rate up58.1
53.9
Median payout ratio
48.2
50.6
ping has helped, as has the use of
3.4
2.3
Mean yield
4.6
3.7
a deductible clause; but, after all,
There appears to be a somewhat and
are
therefore in a position it will take many $50 deductibles
...

by the weighted

earnings.

average

Agricultural
American

Bankers

Shippers..:.

Federal

Fidelity

Phenix

—

Ass'n

North

+ 242

+107

___—

+144

—

(3) Paired stocks

were

pairing

then

se¬

The basis

essential similarity

was

greater

internal

measure

con¬

in all respects except payout ratio
and dissimilarity in payout ratio.

sistency indicated in this arrange¬

Perfect

ratios and

pairing is, of

im¬

course,

ment

the data.

Price earnings

payout ratios

posi¬

are

have

This does not
assumption

pansion.
be

high payout during

was

one

possible but

stock prices.

panies in both high and low pay¬

tively correlated. The higher the
an attempt was made
pair only stocks of companies payout the higher the price rela¬
in the
same
industry and with tive to earnings.
closely similar previous growth
records.

criticism
in

some

involve

against
but

pany.

ican
of

really low payout stock
a
low payout paired

much

lower

payout com¬
In the extreme case, Amer¬
a
payout ratio

Airlines with

about

40%

paired

was

Eastern

Airlines

ratio

21%.

with

Mean

with

payout

and

median

which

and

cause

indeed whether both

that

evident
the

ratio

the

and

cause

is the

pay¬

ratio

price-earnings
The

only

con¬

the price-earnings ratio is a causal

then

payout

seems

would

assume

that

only corporations with high pricecan

sell additional

stock to stockholders

the public

group.

(4)

The

tiles,

was

entire

according

Mean

payout

median

and

price

sample

earnings

ratios.

yields,

ratios

(5)

The

tiles,

was

entire

sample

Mean

price-earnings

and

ratios and yields

median

payout
then com¬

were

puted for each quartile.
The

then arranged in quar-

according

ratios.

and
then

were

computed for each quartile.
stocks

then arranged in quar-

pairs

selected

were:

High Payout—

Blyth Group Offers
Blyth & Co. Inc. and associates
offered publicly yesterday (July
17) an issue of 175,000 shares of
Oxford Paper Co. common stock
(par $15) at

price of $38.25

per

share.
Net
the

proceeds
will

stock

from
be

the

used,

sale

together

with other company funds includ¬

American

meet the costs of

D.)

Company

Cyanamid

American Airlines

capital improve¬
about $8,000,000
scheduled to be made in 1957 and

Aluminium Ltd.

1958.

Pont

ments

totaling

The

sued

Amerada

terests

Scott Paper
National Lead

serves

General Electric

its

General Motors *

most

bank

notes

were

is¬

Corning Glass
Republic Natural Gas

Ex-Cell-O Corporation

factor

show

apparent
ability to sell addi¬
no

conclude

may

that,

States

United

then

April, 1957 to provide
of the purchase price for in¬
in

additional

timber

Maipe.

83,

122

considered

have

growth

compensation

re¬

one

the

larger

industry in the United States.

income

company

and

net

$1,551,000,
equal
to
$1.76 per share of common stock.
This compares with net sales of
$2-6,077,000 and net income of $1,872,000, or $2.18 per share, for the
same period of 1956.
For the full
year 1956 net sales were $61,689,000 and net income $4,644,000, or
$5.43 per share.
Dividends

paid

being
at the quarterly rate of 50
are

currently

cents per share.

With Bache & Co.'

re¬

140

537

+ 189

+ 150

Deposit-

+ 168

Guar

Surety

+ 117

—

have been made for stock
splits.
In
the
case
of
data of the merging units
been combined, pro forma.
In the
of
rights, exercise of the rights is

-Adjustments
and

dividends

the

mergers,

have
case

assumed.

cars

and 500 cement hopper cars.

Associates

offering

the

are:

Equipments Offered
Iialsey,

associates on July

subject to the authori¬
zation of the Interstate Commerce
cates

are

prich & Co.; Baxter & Company;
Freeman
& Co.; McMaster Hut¬
chinson & Co.; Wm, E. Pollock &
Co. Inc.; and Shearson, Hammill
Co.

With H. Carroll Co.
(Special to The Financial Chronicle)

BEVERLY HILLS,
ter

Calif.—Wal¬

Patty has joined the
Carroll

Drive.

Camden

staff

324 North
Patty was

Co.,

Mr.

formerly with Great Western Se¬
curities.

Commission.
The

entire

issue

certificates

Warren

Enters Opens

Warren Enters is conducting a
following
equipment estimated to cost $20,- securities business from offices at
442,906;
700
hopper
cars;
200
47 West Sixty-Eighth Street, New
highside gondola cars; 700 low

is to be secured by the

For the five months ended May

31, 1957, net sales of the
amounted to $25,777,000

Casualty-

Fid. &

—__

Dick & Merle-Smith; R. W. Press-

char¬

not

Seaboard

Relnsur..—

Continental

Fidelity

Stuart & Co. Inc., and
12 offered, $5,460,000 of Seaboard Air Line RR.
4)4% equipment trust certificates,
earning rate. Investors want cash
dividends even when it can be series R, maturing annually, Aug.
demonstrated that the rate of re¬ 1, 1958 to 1972, inclusive. The cer¬
turn on new corporate investment tificates, first instalment of a total
issue of $16,350,000, were scaled
is high.
to yield from 4.15% to 4.35%, ac¬
cording to maturity.
ations and specialties.
It is be¬
Issuance and sale of the certifi¬
Investors

acteristics.

—

Surety

H-

Casualty

Aetna

American
American

that

(Special to The Financial Chronicle)
^

BEVERLY
HILLS,
Calif.—
with
subsidiaries, produces and sells Frank Rosenberg and Irle I. Waller
paper for magazines, books, com¬ have joined the staff of Bache &
mercial printing, converting oper¬ Co., 445 North Roxbury Drive.

Oxford Paper Co., together

such

Westchester

hazardous

—

Fire—

Massachusetts Bonding

written any of the
casualty
lines

having

never

ratio is a positive causal
in the, valuation of stocks

producers of these types of paper,
accounting for about 8% of the
annual output of the book paper

Oxford Paper Stock

ing retained earnings, to prepay
$4,000,000 of the company's out¬
standing 4V2 % bank notes and to

(G.

payout

lieved

American Home Products

Searle

quartiles

You

com¬

out

gard retained earnings as equiva¬
ceivable basis for suggesting that lent to money deposited at a high

earnings ratios

computed for the high

effect,

payout

the

effect.

price-earnings
ratios,
payout
ratios, and dividend yields were
out group and for the low

have

Nevertheless, it

cause.

mon

factor

stocks

Then there is the company

and motor
vehicle lines, and then abruptly
difference in
Cause and Effect
tional common stock.
Stocks in goes
into the speculative field.
Perhaps the most valid
When
two
factors
are
category
have
done
new Being new in these lines it cannot
closely each
of the selections is that
related it is never possible to be common stock financing in recent
cases the pairing did
not
a
realty
i*ign
payout scientifically positive as to which years.

rather

with

into

been

has

to
the the next county.

since

of high
Examination of com¬

period examined

$15,000

blown

that

home

appear

valid

ex¬

to balance out the loss of a

—

Fire

Springfield

...

lected from the sample.

51
162

—

Ins.

+172'

—

___

Wash.

—

—1.

Fire__

Security

—

Ins.

Paul

St.

Amer.

Fire

Providence

+ 165

No.

Ins.

Phoenix

—

River

Pacific

+
+

—__

Hampshire

Northern

Union

National

169

—

National Fire
New

—

Fire
of

Ins.

Co.

Ins.

Insurance

Home

American

Hartford

Falls

Hanover

107

+ 173

—,

Ins.

Firemen's

Great

—

Fund

Fireman's

Glens

Ins.

Fire

—

Ins.

Continental

100

+ 169

—

—_—_

Ins.

Boston

—

Ins.

side

300 woodraek

gondola cars;

BANK

NATIONAL

City.

York

Second Quarterly

of INDIA, LIMITED
Bankers

the

Government

Kenya Colony and
Head

Office:

West

Analysis

13 N. Y. CITY

Uganda

BANK SY0CKS

Bishopsgate,

End

London, E. C. 2.
(London) Branch:

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

Tanganyika,
Uganda, Zanzibar, and Somali-

Burma,

land

Protectorate.

Authorized Capital

Paid-Up
Reserve

Bulletin

Capital
Fund

£4,562,500
__£2,851,562

Request

£3,104,687

Laird, Bissell & Meeds
Members New York Stock
Members

exchange business.
Trusteeships and Executorship*
also undertaken

American Stock

120 BROADWAY,

Exchange
Exchange

NEW YORK 5, N><t

Telephone: BArclay 7-3500
Teletype—NY 1-1248-49

The Bank conducts every description ot

banking

Kenya,

Aden,

Bell

and

(L. A. Gibbs, Manager
-

Trading Dept.)

Specialists in- Bank Stocks

The Commercial and Financial Chronicle
30

first

page

We See It

■As

than what are re¬
the alternatives of labor strife, depressions and

tant, or at all events of less importance

garded as
the like.

monthly letter has this to say: "The question raised by
these changing relationships is whether the higher costs
resulting from the wage increases can be passed on;
whether the end-result of these inflationary pressures is

with
the good of his country at heart will want to take a closer
look at this strange concatenation of current trends. They
are, of course, closely inter-related.
It is not difficult to
trace cause and effect among them, and when that is done,
man

the wholesomeness of the combination

doubts about

expect,

ganized labor, plus an attitude on the part of the public
or that part of it which controls the votes, which enables
the unions to demand and to get almost anything that its

whether higher

of the

can

July 1. Capacity for steel mak¬
iv this country is r.ow rated
at 133,459,150 tons per year, corripared
with
128,363,090 tons ,!n

ing

employment depends upon
buying power of all segments

1956.

It is the high and rising cost of labor
obliges the employer to seek more and
more labor saving machinery now made possible by ad¬
vances in technology.
It is rising costs which drives prices
all

Are We

but

despite a harder monetary policy, and notwithstanding
a not altogether bullish statistical position of many if not
most types of goods.
employment,

rising volume of borrowing by consumers

flexible monetary situation growing out of

and others, a

of funds already in existence, and
repeated assurance that depres¬
sions are to be no more, all have continued to keep the
wheels turning at high though not fully maintained speed.
But is this a sort of situation to give solid confidence in
the longer term future—and it is the longer range future
which should be receiving much more attention than it is
getting in this "cycle-mad" era. We feel confident that
the economist or the business executive who placed great
faith in such a situation a half century ago would have
been regarded as anything but a safe guide.
increasingly active

use

the ebullience which the

It is the New Deal type of reasoning, some of which
began to make its appearance in the New Era which pre¬
ceded the Keynesian philosophers of the 'Thirties, which
has labeled such things as these helpful and healthful.
This

seems

to be last time in the world to bestow

thing

millions, if not tens of millions of

and

women

in view of almost universal retirement

must,
in

men

substantial part

very

subsist

upon

these

who

practices,
other

and

be in

obtain far

There
rent
ers

say
per

can

permits, not to say encourages, one
production to exert monopolistic pressure

current

output than it produces?
doubt that just this is the effect of cur¬

developments. All but the most ardent special plead¬
concede that the rise in wages in recent months, to
nothing of recent years, definitely outstrips output
manhour. Nor can there be any doubt that what is

termed

productivity—i.

output

per

manhour—leaves

out of account matters of the utmost

importance in judg¬
ing what part of production should go to wage earners.
Of course, labor saving machinery costs
money, and lots
of it.
Recent wage increases have pushed these costs
higher than ever before. It is these technological advances
and the expenditure of capital upon them, not the exer¬
tions of the wage earner,

which has resulted in whatever
gain there has been in recent years in the volume of out¬
put of each man each hour he works in the factories, the
mills, the farms and the other branches of industry. The
who

man

and the

saves

man

his

funds

and

whose skill and

provides this equipment,
ingenuity makes it possible—

neither of whom is included in the roster of
wage earners
due their full share of the
larger output

-—are

made

they have

possible.
it is

not

only

matter of justice.

matter of sound economics and
and trade.

It is also

solid future for

Interest, dividends, rent, and the other

sources

of income,
some

exclusive of wrages and salaries, account for
$104 billion annually—surely a sum too large to be

regarded
a

which

inflation

wherein

fear,
ment

negligible. Buying

transfer of income to

some

is not increased by
group of men who with the
power

blessings of government enjoy

monopolistic position

which enables them to take what does not
to them.

rightly belong

all

dollars

many

the

bidding for

are

that type
should

too
by

manufactured

Govern¬

scarcity of

goods.
It

true,

that during

indeed,

War

World

manufactured

steel,

tons

this suggest

of*

short- :

of the capacity to;

total

debt

mortgage
the

end

all types

of real estate increased

vehicles

motor

from $35.5

1945, to;

knows,

able to sell all the

produce,

can

ventories of

billion

everyone

now

and

740,000

duce

cars,

them?

of July

;

short¬

the ability to

not;

reported !

1957. Does this sound like

age

•

that'

dealer in-

cars are

new

about

are
cars

pro¬

preliminary figure

the

Government

dollars,

through

buying

added

This

12/31/56.'

on and on, does it
tremendous volume
more
logically -give
question of whether

is going

spree

in this
particularly,
not,

purchases
of
Government rise to the
by
the
Federal Reserve or not such vast borrowing
System,
thus pumping
reserves repaid easily?
the

system.. It
war

that the

and

since the

tered

end

continue

with

manufac¬

Government

the

turing

all

arid

dollars

consider what
the supply of
supply of goods

able, the Government could easily

finance

1941,

War

II,

end

en¬

the

1945, the figure was $24.3

But,

6/26/57

this

borrowing,, orgy,
by
additional
purchases' of Government secu¬

these

does

additional

check

spending.
its

instead

borrowing

this

Federal

The

Board has made

holdings were down to $22.9 bil¬
lion, after having been $25.9 bil¬
lion
at
the end of 1953.
Thus,

system

there is a. natural
and
borrowing,

deposits,

and

banking

have additional reserves

not

finance

the

When

tem.

the Federal

securities.

and

rities by the Federal Reserve Sys¬

Supply of Dollars

Reserve
strong case for

ening.

manufacturing

dollars

this

popular concept, the Gov¬
ernment has actually reduced the
available

amount

by this means.

recent

years

disposal of the Gov¬
for "manufacturing" dol¬

at the

means

ernment

lars

Another important

reduce

reserves

the

amount

which banks have to hold

against their

deposits. Since the
war
these reserve requirements,
in percentage
of deposits, have
been

increased

both

de¬

and

creased, and

as of now they are
approximately
two
percentage
points lower than at the close of
World War II, on demand deposits,
and one percentage point lower
on time deposits.
It can hardly be said that the
Government in recent years has

manufactured

dollars

compete

goods available.

shipments, has reportedly*

refusal to make

additional

that the

prosperity

may

be slack¬

important

has

System

serve

not

recent

been adding fuel to the "in¬
fire," and if this policy

years

flation

continues, the increase in the sup¬
ply of dollars resulting frbm the
borrowing of the people them¬
selves will meet the natural check

in the
banking system with which To fi¬
nance
borrowing,
high interest
rates and tight money.
of

Soft coal production is row pre¬
dicted

diminishing

reserves

506 million tons for 1957,,

compared with 500 million tons in
and

forecast made in No¬

1956, of 532 million tons

vember,
for 1957.

Actual

Now,
side

supply
of this
tion.

other

let's

examine

the

this

inflation

fear:

goods.

type of

Is there

The

•

the

antithesis

inflation is produc¬

anything, other than

million

been

2^9

with

253.899,000

half of

and

for

mines

some

prices

materially in 1957,

result

demand

and wine

lead

declined

have

compared
in the first

tons,

tens

1956.

Copper,

slackened

the

these

commodities,

being taken out of

are

production.
S.

prodi'Hion for tse

paper

week

ended

90.6 %

of capacity, compared with
of capacity the preceding

93.9%

June

1956. Even
now

1957,

was

newsprint supplies are
abundant.

reoorted

commodities

Surplus farm
owned

22,

for the week in

week, and 99.6%

by the Government amount'

to several billion dollars.

textile

The

that

industry

extra

reportedly

plant

vacations,

will reduce inventories, and signal
a

for

turn

of men's

months

the

better.

Production

clothing in The first five*
of

1957

at,

reported

was

88%

capacity by the Clothing
Manufacturers Assn. (85% of ca¬
pacity for May, 1957).
The petroleum

state

serious

petroleum

industry is "in a
oversupply," the
of

department

Manhattan

Chase

Bank

the

recently

reported.
makers

seem

to sell all their wares,

this fall

unable

at least not

without lowering prices.

Sales for

predicted as even
With a pre¬
diction in January that 1957 would
be 3% to 5% higher than 1956.-.

with

are now

1956, compared

working

have

hours

been

reduced, the average factory work

the people
themselves

itself, that is scarce today,
or
hard to get?
As everybody
knows, the productive capacity of

week

added in vast amounts to the dol¬

this nation has4)een tremendously

1954.

lars

II.
Expenditures for new plants and
equipment are reported as having
totaled $211 billion in the_ eight
years 1949-56, with an additional
37.4
billion
anticipated in 1957

the

this

other

country

they have to spend, through

borrowing.
be

hand,
have

money

This is

condition to

expected during the prosperity
a business cycle.
It re¬

phase of
sults

from

goods
able
As

and

both
a

repay

desire

confidence

buy

being

the loans incurred.

reported in the

serve

Bulletin"

for

"Federal Re¬

June,

1957:

expanded

since

World

War

alone.
Without
maze

becoming
lost
let's take

of statistics,

in
a
look

by the National Coal Assn. to have

Furniture

Supply of Goods Side of the
Equation

production in the

first half of this year is estimated

hopes

point, for this
discussion, is that the Federal Re¬
The

the first half of

1957.

re¬

available, until it sees signs

serves

weeks

many

1956.

this

borrowing
and
the
bank
deposits resulting
therefrom uses up the reserves of
the banking system.
In the type
of
inflation which we all fear,
Financing

bid for the supply of goods avail¬

System owned $2.3 billion

billion.

Government

results of these

will

the

World

Reserve

than

rather

war.

the

can

infinitum, let
happened

has

dollars

scarcity

But,

conditions

And

out of World

came
was

goods.

conclude
two

financed.

as we

there

War

was

true that

many

and monetary
by this means that

banking

■

bonds

into

rate

helped to bid dwindled to 4.6 mouths of work,
up prices, as it always does dur- • compared with 8.2 months in May,
ing the prosperity phase of a busi¬ 1956.
'Why.
ness cycle. But, rather than induce
Freight carloadir.gs have been,
one
to feel that
this borrowing below
both
1956
ar t
1955
for
indeed

has

power

vast

industry

120 "million

•

some¬

during 1956 are reported to have
reached 65,212,510, a new record.

Experiencing

cycle, rather than

ness

for the

But

there

situation which

of the factors of
to

can

result

of $147.2 bil¬
.Nor can we sell as many houses
lion at the end of March, 1957; as we can build.
consumer
credit of all types in¬
justments.
Incoming
orders
for
machine
It seems to me that much of the creased from $5.7
billion at the tools continued their steady de-«
of
1945
to
rise in prices, and the decline in end
$41
billion
on dine of recent months, falling in
the purchasing power of the dol¬ 4/30/57; commercial loans of all Mav 52% below May. 1956, and
lar, which we have experienced insured commercial banks in the hitting the lowest level in two and
in recent years, lias been a part U. S. increased from $9.4 ''billion \ a half years.
The total backlog
of the prosperity phase of a busi¬ on 12/31/45 to $38.6 billion on of orders, based on the current

Looks at

justice and what economic health

Registration

"inflation" is going on and on in¬
definitely, it is difficult to find a
thoughtful man who has ruled out
the business cycle, with its periods
Of prosperity and subsequent ad¬

pensions.
But what

will

Does

the

blessing upon a course of events which admittedly would
definitely tend, if not inevitably result in, virtual destruc¬
tion of recipients of small fixed incomes.
We have now
adopted and given our blessings to a system of so-called
social security which is destined to supply small incomes

year

steel."

Up to the present sheer momentum, continued high

capacity for the remainder, of

produce it?

Inflation

■

news

"If

the

"the

and of themselves.

which

recent

story stated
production can be main- *
tained at an average level of 89%
that

from first page

ambitious leaders decide to be in the interest of the men

of capacity in the last week

age of

Continued

uwcA-

aneau

June, despite the knowledge '
that steel prices Would be raised

strongly endorse the opinion ekpressecl

not too

lies

wages

by this well-known publication when it adds that
country should understand where the danger lies."

inflation

84%

populatipn."

produce

Steel
production has declined
steadily in recent weeks, to only

The maintenance of full

are

consider whether the results look

and costs will only
higher priced labor and goods.

the maintenance of the real

capacity

continuing rise in the price level which so many

diminish the market for the
.

are

It is the monopolistic position of or¬

all but irresistible.

using our present
goods, and

nitely.

to be the

that the thoughtful

We believe, however,

Thursday, July 18, 1957

how

dangers of the current situation are, of course,
well understood among the matriculate.
This is clearly
true of the First National City Bank which in its current
The

Continued from

(298)

declined

39.7

hours

Mav, the lowest since September,

F.ederal Reserve index of
p roducuo n, which
measures actual output at the na¬
The

industrial
tion's

factories

and- mines

percentage of the actual output

in
of

the

three

year

base

period

1947-49, declined to 143% in May.
144% in April and 146% in

from

January,

February

and

March,

Volume

186

Number 5656

In previous years this index
production rose steadily

19,57.

of actual

from

for

112%

1950

for

134%

inflation?

tinued

Was

"techno¬

William

term

the

automation)?

ever

for all of 1956

for the

people quit buying at higher and

examples

higher prices; in fact, many simply
quit buying. What makes people

147%

month of December, 1956).
doubt

No
could

additional

cited, but

probably
already agree that there is now
neither a shortage of goods nor of
capacity to produce goods. Nor do
feel

that

you

there

exists

factured

less

and

dollars bidding for more

and

less

for

We have indeed had

goods.
and

to1 bid

goods, but those dollars

the prosperity

bulge

business cycle.

often

have

gone

up,

further

reduction in the
of the dollar.

inflation

labor

occur

wages

price

purchasing

power

One hears also that

fostered

that

creases

in¬

by wage
the

exceed

productivity.

increase

These also

cuiing

naturally

tne

pros¬

perity phase of the business cycle.
Labor

unions

are

during prosperity, than
other periods of the cycle. La¬

far

position

better

during

perity and
it is only

bargaining

periods

full

pros¬

employment,

and

logical that in such cir¬
employers will go to

cumstances

lengths to avoid an inter¬
ruption in the production of goods

great
that

are

sold

demand

that

nature

price

slack

also

than

its

periods

Management

inefficient

sell

can

labor

causes

employment.

when

products freely,

competition

for

than

the

con¬

will deny that we have indeed had

employment

these

few

past

years?
The question is not whether
have

had

full

few

past

employment

to call this condition

are

prosperity.

flation.
that

than

capacity

for

you

inflation

it in¬
concede

must

ofieren

this

inflated our
goods, and
is the
And again, it

condition

Net

York

4%%

Co.

stock

by
Co

funds

ditures

1957

other

for

the

for

and

con-

program

expected to cost about $29,000,000
in 1957 and $36,500,000 in 1958.
bonds

The

redeemable

are

borrowing of in¬

was

M r.
West

youth, to
in

his

ferred

inWalter

William

vestment

compton

banking

Steel

William S. Renchard

Angelica. Mi. Renchard, who is Executive Vice-President of
"ess lo St; Louls' specializing in • the Chemical Corn Exchange Bank, is secretary-treasurer of the
larm mortKa2cs and municipal
local group. Mr. Ludin is a Vice-President of Dillon, Head & Co.,
Knvtrld

n/^l

've® in
was oite»
,,

The

the

.....

/\vv»

new

Board

the

Governors

governors

who

1958
on

for

100%

after July

July

1986.

Texas Electric Service Co.
ders electric service in

ren-

area

northwest and west Texas having
an

estimated population in excess

996,000.

of April

1957,
the company was serving 288,248
customers, including customers at

rpfail
leiail

in
in

i n
113

tnwnc

thp

1957

30
£

anH

cities, towns and iu-

ral communities
For

30,

months

total

counties.
Pnrlerl

operating

Anril

revenues

operating revenues

of the company amounted to

$58,-

547,000 and net income to $14,027,000, compared with total operating revenues of $56,471,000 and
income

net

calendar

operating

revenues

1955

were

Wolf Sales

Ohio

The

—

pointmpm qlf George J.
sales

manager

ap-

By JOHN DUTTON

Lesson No.
+•

lo^med With Oliices at 3U1 YOlk
WJ10 have studied the fine art of
shire Drlve to edgage m a
ca" persuasion, salesmanship, or what
Officers

rities business.

Pmcident-

Thn-,.P1.

are

John

lu-

Secu-

call

have

named

namcci

F]].

Vice-President

Fulmer

'
■pYn-™

rorm

Kegent oecs.

Securities

Regent
been

with

formed

offices

qualified

prospects

clientele.

You can rely upon this
and in times when you need some
encouragement take a good loo.c

Street,

New York City to
securities business,
Officers are David Haber, President,
and
Solomon
A.
Ilopard,
in

coverage

that you will eventually build

has

Corp.

Secretary and Treasurer.

does

the sole distributor for Mutual In-

Director, Memorial Hospital, New

not

serve

all

manufacture
the

support
then
there

time

this

comes

dollars
to

borrowing,

the

reserves

when

cost

borrowing goes up, money grows
ever tighter, and it becomes more
and

difficult

natural

check

borrowing
will

tion,

where
is

growth

means

this

when

all

there

this

these

logical

infla¬

circum¬

reason

conclude that it will go on

and on

indefinitely?
And,
have

you

had

Have

will

then

cycle,

ask
away

henceforth

tall

past

done

business

can

these

prosperity,

that
on

what

few

yourself,
with the
prosperity
on in¬

and

Challenging: Question

Now here's
tion:

What

challenging

ques¬

really interrupted the
or
the
prosperity

inflation,
(whichever

you

of the 1920's?

choose to call it),

Was it overproduc¬

marketed

force

company

through

Nationwide

first

trust

rector of
ctor

Hough also announced

pointment of three division

who

will

direct

ap-

sales

and

supervise the training of Nationwide

in the
operating territory.

much

debt?

n-p

p" vpnp°ctrppty

Jersey sales regions; Theodore G.

"a^,

are

onnni-ntpri

and

more
sa

District

Columbia

manager"

manaffin?

Hi-

J. J. Kyan Co. rormed
J. J. Ryan & Co., Inc. has been
formed with offices at 50 Broadway, New York City to engage in

shields & Co., Inc. and Savard &
Hart.

U/Itk

Wlin

U..

Flov

riax

Co., 1562 Main Street.

clients

One dav his saksmanflppr

looked through

some

inactive and

100K^cl tnioug" sorPe inactlve ancl

smau

that

accounts

had

been

desire

Arthur

securities

engaging

business

from

2757 Claflin Avenue,
Bronx, New York, under the firm
name of The Dresner Company.

offices

telephoned
0£

All day long he

former

these

{he firm,

clients

introduced

himself,
offered service, and discussed the
securities which they had previ-

the part of the

promising
contacts
in a good day's
work.
His salesmanager complimented
him, and told him that
he thought he had done his share
for the ^day and he had earned a

made
and

some

had

put

good evening's rest. In reply, this
salesman told him, "I have just
one card
left.
I'll make that call
and

then

minutes

I'll

later

home." About 20
returned

the

.nd^u'S ^er for'aVztble'block

Tex—Neal

^Z hJllen

many
,

f
1

successful

Pickett

formed wWi

mine

who has

Sewall,

Secretary-Treasurer.
H. J. Shaw Opens

A
^
WATERTOWN, S. Dak. ^Haryears of experience in
vey J. Shaw i§ conducting a secuHe had become a
rities business from offices at 21
salesmanager. Recently
a new salesman who

employed

kad

situation

N^tl Pickett Co. Opens
HOUSTON

hired many falesmen du™g dis
he

the

ctt, President, and James
friend of

good

along and discuss
authoritatively.

e/f. ssk mt was bksjss

mansh.p

career as a

Dresner

keep at it, even during times of
discouragement which also is nor„,al for the course
Even men
who have been in the investment
business for many years will tell
you
hat there are hmes when

ur b

LxO.

he contact them.

y0U arG d°ing' y?U Can- of common stock purchased by
build a fine business- But firs.t oi Mr. Prospect Number 26. It was
all you must have the determina- a reinvestment order that was just
tion to ^ork consistently and to waiting for someone to come

regions.

1WO

book for success in this busi-

Dresner Onens
T

.]0_

wns

'
i

primary essentials

KssrasafittK:
Washington, D. C„ for the Balti-

others who wish

Effective

appoiniea ma

„

the

G^nev^e've m' in what

:e^rme ',VMhranrh

Marvin L. Madeson of Flushing,

Y„ for the Albany, Long Island,
Metropolitan New York and New

salesman to develop a sound and salesrpanager's office and with a
J Svr.n.A," prosperous clientele. It you want beaming smile on his face he laid

parv

—

Xfo? Rlfnolds &C Co!?C 2 21)

companies'

agents

There

ness

SYRACUSE, N. Y.

man-

SPRINGFIELD, Mass.—John B.

it too

Mgr. of Reynolds Office

personal insurance sales

Goyette and Lawrence D. Pouliot
are
now
with J. Clayton Flax &

Was

the

One

to sanction the sale
agents.

for Nationwide

agers

Qf it.

York, and partner, G. H. Walker to become successful investment
&
Co.,
New
York,
has been securities salesmen and they give
elected a Director of The Mead it a try and for one reason or anCorporation.
other they quit and call it a day.

funds by its

mutual

Was

major insur¬

rising cost of labor? Was it
the rising price of goods? Was it
too
much
speculation,
on
con¬

tion?

£)r

Until recently Mr. Wolf was Di-

years

definitely?
Poses

ance

Mr.

call

you

being

agency

Insurance—the

borrowing

promised

that

the

open-end

investment

stock

common

made).

were

Further,

stances

all

repaid

the loans
.

(but, by
that

assurance

borrow—a

the

Foundation,

come

remember that if the Government

spend,

dedicated man who wished to sell
securities to people who were interested in building a sound portfolio of investments,

at the iacts, relax, and give it a ousiy bought from the other salestrial.
^
men. About 4:30 in the afternoon
A Days work
he walked into his salesmanager's
There are some men who fit office and made his report.
He
into the investment business. They had talked with 25 people, he had

John M. Walker Dir.
•
"
1
*
have the temperament, the stamina
DAYTON, Ohio — JohivM. and the enthusiasm for this strenWalker, M.D., Associate Clinical uous activity, and they make a go

was a conscientious,

aver- opened by several salesmen'who
ages- ,7^?? ls a.
^ sa
bad previously been with the firm,
work that if you intelligently ap- j^e piaced 26 of these cards on
py effort to a sufficiently broad this man's desk and suggested that

George S. Hough, Vice-President
and general manager. Heritage is

dollars

the

get

£ ™a(this, ^"working the law of

Wolf as^

Heritage

wish

vou

Thomas

and

business

right, and he

miners had to look elsewhere for possible

rities, Inc., has been announced by

and

...

inlenigeiu perseverance,

Vm-F-

qni

concerns

dividuals

was

....wu

fnrmoj

engage

Heritage Securities
COLUMBUS,

PJ1'1 down m your book oi things - As is often the case with new
that are true, that can be relied. men> he had a limited circle of
Form Internat I Milt. Fds. upon, aaa tnat wm always Yen
acquaintances and friends that he
PTRMiwrTTAM
Aln
Internaj°U 1 you ^ve this one httm began to cultivate, but this source
BIRMINGHAM, Ala.
interna- WOrd a chance. 1 like to call it of business
inadenimfp and hp
tional Mutual Funds, Inc. has been "intelligent nerseverance " Others
f
inadequate alia ne

$49,084,-

Mgr. For

•%

total

$10,910,000.

zation.

Wall

000 and net income of

r»

Securities Salesman's Corner

1 or the editication of some of
Executives of" many leading innew members of our profesvestment firms during the past
and as a reminder to some
half century served their appren- °* the rest of us, I have a little
ticeship in the Compton organi- story for you that I think can be

$13,451,000 for the
1956.

year

replace three retiring board members of

redeemed-widening market for investments.

those

are:

nationwide chain of offices for the
underwriting and distribution oi
municipal securities, and one ol
the earliest security* dealers to
employ advertising to reach the

In-

prior to July 1, 1962, to 100% for
those redeemed on or after July

prior

•

and Robert W.

investment bankers to establish a

redeemed

.1 •

Orlando S. Brewer, partner in
Phelps,
Co.; Harold H. Cook, partner in Spencer Trask & Co.;
Fisher, Vice-President of Blyth & Co,, Inc.

for those redeemed

those

bond sales. Mr. Compton
member of tne original

ctu°ta

from

1, 1986; and at special redemption
prices ranging from 101.61% for

/*.C

member of the executive committee of the local IBA

Association

Fenn

(lrst ovf?r U e
in meeting its

top ' for the nation
,

w-»

group.

l.°" was.in .cdai"i? of Liberty Bond

™as

nr»

Inc., and

During World War I, Mr. Comp-

vestment Bankers Association of
America. He was among the first

107.61%

Jos<g>h Ludin

busi-

option of the company at
regular redemption prices ranging

the

con¬

Macon, Mo. In
1906, he trans¬

of $4,400,000

its parent.

terms

annual

its

banking in
A r 1 i n g to n,
K a n.,
a n d

re¬

such as
borThe com-

three-year

Hollywood, Fla., Dec. 1-6.
Mr. Steel, a partner of Drexel & Co., is currently chairman
of the New York Group of the Investment Bankers Association

bonds.

the

holds

engage

part of 1958,

construction

panys

purposes,

repayment

rowed from

expenexpen

company's

program

mainder of
and

the

association

Compton

com-

provide

estimated

cover

for

struction

used

the

elected

old.

York,
moved

to yield
awarded
competitive bidding

will

when

office

take

were

Lockport,New

was

equity of the company
its parent, Texas Util-

vention

July

Born

first

contribution to the

will

members

short

years

as¬

101.608%

group

and

Hospital

illness. He
91

proceeds from the sale of
together with a $6,000,-

cash

ities

inflation,

must concede that it has been

blown up by the

New

puo-

vastly

produce

inflation.

call

The

bonds

that ..production

remember
cure

these

call

you

have

you

whether

but

years

the

pon.

sumer's dollar is keener. And who
full

200

Street, New York, pio¬

100.82.% for the indicated cou¬

can

inefficient in periods of full

employment
is

and

readily. And it is only human

investment banker, died

course

stronger
bor

66th

mortgage bonds, due July 1, 1987,

mon

in¬
consequent further

July

Service

Electric

made

that

continued

and

and will continue
this will contribute

up,

creases.

hears

and

William Randolph Compton,

board

new

the Investment Bank¬

of America.

Association

ers

age.

Steel, William S. Renchard and Joseph Ludin have

elected to the Board of Governors of

been

The

the bonds,

Reason Wages Have Gone

years

issue of $16,000,000 Texas

000

One

Corp* and

licly

4.65%.

causes

Compton

after

the

Co., dies at 91

13th

sociates

themselves

Offers Utility Bonds
The First Boston

have been "created" by the people

through their volun¬
tary borrowing,' and it is such a
combination
ox, conditions > mat

Walter H.

Former head of Wm. R.

East

First Boston Group

we-should all
and

that

neer

the

fear, wherein more
dollars are being manu¬

found

do that?

inflation which

type'

reason,

Steel, Renchard & Ludin IBA Governors

Compton

What¬

19o3, then 139% in 1955 and 143%
(and

Randolph

logical unemployment" (the mod¬
ern

(299)

The Commercial and Financial Chronicle

Triffh

investor

his

own

Qtrppt

Southeast

Fifth Stieet, S

The Commercial and Financial Chronicle

(300)

1957,

ft. W. Simmons Named

Thursday, July 18, 1957

estimated at 11,964.000,000 kwh., according to the Edison

was

Electric Institute.

past week's output increased 908,000,000 kwh. above that
previous week; it rose above the comparable 1956 week
1.086,000,000 kwh. and 1,524,000,000 kwh. over the week ended
July 9, 1955.
The

cm"™0!,,pLH„SDi The Slate oi Trade and Industry
111.

CHICAGO,

Richard

—

the

Simmons,

partner, Blunt Ellis &
Simmons, has been elected to the
board of governors of the
Association of
S

i t i e

e c u r

Dealers.

late

for¬

e n

mons

dent and Sales

Manager
Lee

Higginson
Corp.
until

formed.

No.

three

for

•States

Group

the

Association

Bankers

IBA

one

has

nls"

with
did

Investment
America,

governor,

past

president of both the Bond Trad¬
Club of Chicago and the Bond

ers

Club of Chicago.

reduce

premium

price

involved

not

did

increases is

the

form

increased

the

absorb all

absorb

part

SAN FRANCISCO,

Howland

Calif —John
First

with

now

California Company

Incorporated,
Montgomery Street, members

300

the

Pacific

Coast

Stock

Ex¬

change.

capacity

2,073,000

FRANCISCO, Calif. —
Raymond P. Hartney has become
affiliated with Hannaford

bot, 519 California Street.

Tal¬

Fairman &

Co.

nine

annual

The

higher

based

are

Harris, Upham & Co.
Alfred

Calif.

Volandri

has

—

become

associated with Harris,

Upham &
Co., 282 Montgomery Street. Mr.
Volandri wasformerly with

SAN

Fay Adds

FRANCISCO,
H.

has

—

become

connected with Hooker & Fay, 221

Montgomery
the

New

Street,

York

and

members
Pacific

Stock Exchanges.

133,495,150

tons

for

figures

1957

Jan.

Pacific, and East South Central States.
Casualties of all liability sizes were less

Output at "Nearly Normal" Levels

weekly comparison is as follows: passenger car esti¬
is 112,933 compared with 73,682 (revised) last week, trucks
summed tip to a 22,928 estimate against last week's

(Special to The Financial Chronicle)

Calif.

Automotive

Reports"

addition, "Ward's" said

new car

final tabulations

now

rate

deliveries

Such

performances took the industry completely, unawares,
publication, and drew sales for the first half

the statistical

1957 to

within 2.3%

corresponding 1956 after being behind
* //
/
~
.

at the first quarter mark.
new-car

sales totaled 544,750 units, best

monthly figure:

since

March, 1956 (573,000). Sales of 213,250 new cars June 21-30
provided the highest 10-day count since March 21-31, 1956 (215,600). Daily rate of deliveries reached 26,656 units June 21-30

With Francis I. du Pont & Co.

for the best pace

month this year,

In manufacturing declines in tha

since Sept. 21-30, 1955 (29,218).

York Adds

Staff

the first six months of 1956.

SAN
Grant

FRANCISCO,
F.

Cotton

has

Calif.
been

shoot

sales

1957

—

added

third quarter in

ahead of corresponding 1956 by the end of the
September, added "Ward's," July 12 report.
,

Jamieson & Co.

With Hornblower & Weeks
(Special to The Financial Chronicle)

now

blower
Salle

connected with Horn-

Weeks,

Street.

With Barclay

was

South

previouslv

Investment Co.-

Prichard,
'with

Jr..

Francis

is-

57.037

but

cars

decrease

11.9%

above

113,658

were

further

reduced

-cars

due

holiday and

one

197,015

year/%^^'^%*

/ -i

9.6%:
but were*
up

Wholesale Food Price Index/at New Yearly High
The Wholesale Food Price Index/

street,
It

was

rose

$6.27

;

compiled by Dun & Brad-*

July 9, another new high for the year.

slightly above the $6.23 of thd preceding week, the previous

high, and exceeded the $6.06 of a year ago by 3.5%>.

the
or

hams, bellies, lard, cottonseed oil, beans/eggs, raisins, beef, steers,
hogs, and lambs. Lower were flour, corn sugar, coffee, cocoa,
and potatoes.
•

sum

total

sale level.

the

represents

the

Wholesale Commodity Price
...

Price increases

boost
cars

(

The Dun & Bradstreet Wholesale Food Price Index

price per pound of 31 raw foodstuffs and
meats in general use.
It is not a cost-of-living index. Its chief
function is to show the general trend of food prices at the whole¬
the

The 1955 week was affected by the
July 4
day of the Coal miners' annual vacation.

July 6 were
'*/..;

June last

Building permits recorded in the 216 outside: centers in June/
total value of $488,693,133. THis:contrasted" with. $508,506,857 ;
a year ago, for a loss of 3.9%, and with $496,645,849 in May,
for
decrease of 1.6%.
"
'// •/
7'

has

nationwide steel strike.

Electric Output Last Week Registered Substantial Rise

connected
&

1956,

Loadings in the 1956 week

William T.

Pont

over

New York City building permit's for* June/ were
$55,200,493, from the $50,349,355 for5 June last year;
down 13.3% below the $63,632,718 for May/'
;

the

Dun

Index Climbs Moderately
.

livestock, flour, sugar, and pig iron helped,
Bradstreet Daily Wholesale Commodity Price
on

the past week. At,293.48 on July 15, it was.moderately^
a week earlier, and noticeably exceeded the 286.78
the comparable date a year ago. / /
Z >
,
Most grain prices rose slightly during the. week.
There was
considerable increase in soybean trading, and supplies were

Index for

above the 292.11

—7

I., du

week

increase

Loadings in the week ended
26.9%, below the preceding week.

now

£08 South La Salic Street.

Loadings in the comparable weeks of 1957 and 1956 were
affected by the July 4 holiday and the coal miners' annual vacation.

(Special to The Financial Chronicle)

-;CKI.G A G O, 111.

was

corresponding

Joins P.. I. Du Pont

|
-

134

freight for the week ended July 6, 1957 totaled 535,334

This

17.5% below the corresponding week in 1955.

CHICAGO, 111.—Robert S. Johncon

revenue

below

slightly

Higher in wholesale price this week were wheat, rye/ oats, ;

17.5% Below 1955

cars.

fell

Loadings Up Nearly 12% Over 1956 But

The Association of American Railroads announced that
loading
of

again

value totals

1957

Car

permits issued in 217 cities during
the5 corresponding ;1956: month,
reports Dun & Bradstreet, Inc. - The- 'aggregate for last month i
was $543,893,626, .a decline of 2.7%
from $5S8,856;212 for/ June/a >
year ago, comparison with the May figure Of $560,278,567, revealed '
a drop of 2.0%.
Among the geographical regions, 'only the South:
Atlantic and. the South
Central* reported ^increases/in: permit >

A vigorous 1957 model cleanup could

the staff of York &
Co., 235
Street, members of
the Pacific Coast Stock Exchange.
He was previously with H.
L.

.Montgomery

The valuation of building

June

."Ward's" also stated that at the end of June, new car deliveries
by dealers in 1957 reached 3,084,650 units compared to 3,155,800

(Special to The Financial Chronicle)

Building Permit Values Continue Slightly
Below Year Ago* : v- .V ' /•*"-

June

10-month

and construction casualties, were at a

machinery and textiles and
apparel industries were partially offset by rising casualties in iron
and steel.
The year-to-year picture for/the five functions was
somewhat less favorable, with only manufacturing and wholesaling
failures showing declines; failures in other. Junctions equalled or
exceeded the comparable 1956 levels.
law.

...

dealers the final 10 days in June was the best in 21 months.

June

—

that daily

;>Fewer manufacturers

car

ftaff of Reynolds & Co., 425 Mont¬
gomery Street. He was previously

joined the

than in

this increase was attributed mainly to a marked rise among
\
;i\
<
r
and retailers-failed than in any other

year;

sales in the U. S. for both June and the June 21-30 periods have
shot to the highest monthly and 10-day levels in 15 months/ <

Coast

x
numerous

iailurcs of $100,000 or more.*/.

week

said

FRANCISCO,

capacity

because

percentage

"Ward's"
mate

John R. Hcdclund has

comparable
The

country's nine

East North Central and West North Central States;
Pennsylvania and Minnesota reported particularly sharp declines.
In contrast, more businesses failed in June in the New England,

and floods interrupted production at Cadillac, Ford Dearborn, and
most Chrysler Corp. plants in the city/

Joins Reynolds Staff
SAN

not

1956.

10% Below May

for June and

Failures Down

Atlantic,

following the July 4 holiday programs. "Ward's" said, however,,
that-the week's schedule of 112,933 cars and 22,928 trucks suffered \
somewhat because of the severe rains in the Detroit area. Storms

•

pro¬

weekly production

15.3%.

in¬

May, but the over-all drop in dollar volume to $51,451,000 was a'
slight 2%-. Cifrrent liabilities bulked 20% larger than in June last-

"Ward's

Calif.

Manter

annual

1957.

85.2% and

was

the actual

ago

1957 is
1,

14,051 (revised) for U. S. A. while Canada's estimated production
was
7,760 against 6,450 (revised) last week, in trucks, Canada's
estimate this week totaled 1,446 against 1,423 last week.

(Special to The Financial Chronicle)

Frederic

year

rate

capacity

the rate

ago

of Jan.

1957.

this

Hooker & Fay.

Hooker &

tons

reported

and in all operating functions except
commercial service.
At 1.084, casualties were 10% below May,
and for the first time in 18 months dipped below the comparable
level of the previous year. However, casualties continued to occur
at a rate of 50 per 10,000 enterprises listed in the Dun & Bradstreet Reference Book, slightly above a year ago, although con¬
siderably short of the pre-war rate of 64 in 1940.'
Tolis fell to Ihe lowest level so far this year in the Middle

Production last week bounced back to "nearly normal" levels

.(Specialto THe ^Financial CHROftittE)

FRANCISCO,

rate for the weeks in

133,495,150

month

tons.

operating

than

Car

SAN

capacity

regions

major geographic regions

vv«ck ago.

major geographical

Business failures declined in June in six of the

with

compared

nine

tolls exceeded those of a year ago; only the East
and South Atlantic States had fewer failures than

regions

June

of 81.9%

average

the

during

last year.

the

that

contractors

equalled those

North Central

1957, equivalent to

15,

castings,

for

industry's ingot production

placed at 377,000 tons

was

A. R. Volandri Joins
'

July

78.7% of capacity, and 2,015,000 tons (revised)

was

formerly with Reynolds & Co. and

steel

ingot and

duction 2,181,000

SAN

beginning

week

the

for

tons

For the like week

(Special to The Financial Chronicle)

announced

will be

for the entire industry

ing capacity

based

Hannaford, Talbot

Institute

Steel

and

construction

in the West South Central States to 18 from 9; while
prevailed in the New England, West North Central,
East South Central, and Mountain regions, declines occurred in
the East North Central and South Atlantic States. In seven of the

operating rate of steel companies, having 96.1% of the steelmak-

The

With

Iron

and

mild increases

conditions. A few will
Many will await action by competitors.

increases.

American

service,

commercial

from 43, and

(Special to The Financial Chronicle)

The

14, and manufacturing to 37 from 34.
than last year, but the toll among

the week.
Failures rose most noticeably in the.
Middle Atlantic States, to 92 from 51,N in the Pacific States, to 63 V

the

failed

year ago.

Seven

competitive

because

costs

northern

midyear steel and wage

Others will

4%.)

averaged

20 from

concerns

wholesalers,

mixed, "Steel" said. Some will pass the increase along
of an average price hike of about 7%?.
(The steel

increase

sharpest
brought

9, construction to 39 from 31, com¬

dipped below the 1956 level; manufacturing failures

creases

Steel consumers' action in response to

20 from

service to

retail

prices are going up. Those on refractories—an im¬
material for the iron and steel industry—are holding
(They went up last April.)

steady.

increase to 40 from 32 in the previous

was an

week earlier.

mercial

all

portant

there

wholesale failures

producers bumped theirs $2 a ton.
Not

Among small failures, those with liabilities

ago.

year

industry and trade groups had heavier tolls, the
rise lifted retail failures to 141 from 102; milder increases

producers

gross ton, "Steel" reported. The
raise their prices last March when
a

1939 when 272 were recorded.

prewar

All

not

with

industry continued to revise prices upward in line

lipped them $3.50

the

week, but the level was below the 49 a year ago. Nineteen busi¬
nesses
failed with liabilities in excess of $100,000 as compared

plates.

under $5,000,

pattern set by U. S. Steel Corp. While the corporation
its prices on pig iron, several southern producers

the

price

With First California

riot

did

256

involving liabilities of $5,000 or more climbed to 216
158 last week and were somewhat higher than the 202 of

this size

net ton—

The spread had been $16.

producers.
its

is $110

now

Failures

This
confirms that strong demand for them—particularly the thick
sizes—continues.
But Phoenix did not raise its plate price.
It
holds at $116 a ton. Other producers increased the price $5 a ton.
This reduces the spread between Phoenix and other eastern pro¬
ducers to $12 a ton. The differential had been $17.

chairman of the Central

served

was

member

Committee

years,

1955.

chairman

firm

present

of local NASD District

structural

numerous

ton raise by the producers quoting

rebounded

week, reported Dun & Bradstreet, Inc.
The toll was slightly
higher than the 251 a year ago, and moderately exceeded the 224
ol' the comparable
1954 week; However, failures were not as

from

above other eastern

The steel

served

W. Simmons

Richard

his

when

1948

$5.50

industrial failures

and

July 11 from the holiday low of 190 in the preceding

week ended

demand for

the heels of

Phoenix

Presi¬

Business Failures Rise Week Ended, July 11
Commercial

structural shapes and wide flange
beams by a premium price producer (The Barium Steel Corp.
subsidiary, Phoenix Iron & Steel Co., Phoenixville, Pa.). It was

$3.50

ni-

w a s

Vice

easing

The Phoenix base price on

Co.,

S i

points

standard prices.

Chicago.
M

8.5

$7 ton price cut on standard

r a

Republic

made

board

the

of
o

and

unchanged at Birmingham (92.5%) and at St. Louis (80.5%).

steel continues to spread to the
few forms that have continued in tight supply.
Evidence of this

chairman

mer

Cincinnati

The

Newton

Frye,

74%;

80% at Cleveland, 3.5 points
to 87.5% at Detroit. Rates

Rates declined 0.5 point to

Far West.

were

He
t h

succeeds

National

Co.,

Above That of Prior Period

The amount of electric energy distributed
by the electric
light and power-industry for the week-ended Saturday,
July 13,-

•

reduced.
of

Trade

Board
preceding- week,-

Although transactions in soybeans on the Chicago
expanded

sharply

over

those "of the

Volume

186

Number

5656

The Commercial and Financial Chronicle

(301)

they remained somewhat below those of last
in

rise

soybean prices occurred.

A noticeable

year.
.

;

Shipments of finished steel in May were almost 6% below those
of April, and 9% less than a year
ago. Zinc stocks rose noticeably

Wheat receipts expanded, and purchases climbed moderately
over those of both the preceding week and a year ago.
There was

reaching the highest level since November
shipments fell moderately.

slight rise in prices. The buying of rye increased sharply boost¬
ing prices above those of a week earlier. Trading in oats was

below

that

Retail

hard

winter

bakery flour in the

near

future.

Flour receipts at New York railroad terminals amounted to 84,152
sacks, with 59,772 sacks for export and 24 380 sacks for domestic
use.
\ " "

orders, and wholesale stocks dwindled. A slight rise in
buying lifted prices somewhat this week.

bags for the sea¬
date, compared with 2,650,103 bags in the comparable period
Coffee trading continued at the level of the prior week,
and prices declined fractionally.

Bank
year

Hog prices in Chicago rose this week to the highest level
June 1955, as trading expanded appreciably.
Hog receipts
were
the smallest since April.
A moderate rise in steer prices
was reported, and receipts were close to those of a week earlier.
Following a moderate advance at the beginning of the week, lamb
prices declined somewhat at the end of the period. A noticeable

v
,
'

purchases of women-g. Fall apparel;
dressps and .bathing suits was sustained at

the call
a

for
high level.

cotton

Men's

suits^ sports; jacketsand slacks continued to sell well
purchases of furniture and draperies were close to those
1956 week, sales of major appliances and air con-

of the similar
•••.

ditioners
and

showed

floor

buying of
a

^slight .yjeathto-year declines.

coverings

barbecue

Interest in linens
lagged, but there was a slight rise in the
goods and garden supplies. Grpeers repoited

moderate increase^in

consumer

buying of cold cuts, fresh

pro-

■

dtice, andJrakad goods. <-J1

REGIONAL ESTCMATES^-The
f

trade in the ^week-«nded this

total

dollar

Wednesday

was

volume

of retail

unchanged to 4%

Vhigher than a year ago, according to estimates by Dun & Bradstreet* Inc.'. Regional estimates varied from the comparable 1956

levels

by- {he

following percentages: New England 4-6 to +10;

Middle Atlantic

*\ tfal, and

+1 to 4-5; East North Central, West North CenSouth Central —-1 to -f3; South Atlantic arid

West

.Pacific Coast dto- -{-4;
—4 to 0.

East South Central

•

4-5 to 4-9; Mountain

.AlJTO.SALE&..RISE—Automobile dealers
and

volume

was"

some\vhat::fiigher

new

purchases of

cars

reported

passenger cars

about

behind that of

FURNITURE
York

than

year

ago.

there is

Friday of 5.3%.

comparative

Course

Bank

Continued

Clearings."

jrom

the; first

half of

year

lagged

1956.

UP—Attracted

ORDERS

by showings in New
stepped up their orders for

and

Dallas, furniture buyers
suites, dining room sets, and case goods; bookings
moderately exceeded those of a year ago. In other markets there
a

moderate rise in the

Wholesale

orders

markets

for

buying of carpets, draperies, and linens.
apparel slackened this week, as

women's

for

closed

the

Independence Day Holiday.
However, volume in Fall dresses, blouses, and coats showed marked
year-to-year gains. Re-orders for Summer sportswear and dresses
were sustained at a high level, and wholesale stocks were limited.
While a slight rise in transactions in cotton yarns occurred, pur¬
many

were

MAY

WHOLESALE

May

according

tionally

rose

the

above

Office

the

VOLUME

EXPANDS—Total

wholesale

billion from $10.4 billion in April,
of Business Economics. This was frac¬

to $10.7

level.

The rise was attributed to
supplies, lumber, building ma¬
terials, and jewelry offsetting declines in electrical goods and
home furnishings. Wholesale inventories fell below those of April,
but slightly exceeded the comparable 1956 levels.
increased

volume

HOLIDAY

shutdowns

for

automotive
cars

and

comparable

May

1956

automobile

AUTO

REDUCES

the

OUTPUT—Numerous

plant

Independence Day holiday last week reduced
so far this year. Production

output to the lowest level
trucks

week

declined

41%,

but

was

11%

higher

than the

Total output of trucks from Jan. 1
3% less than that of the similar 1956

last year.

July 6 of this year

was

period.
OUPUT

SLATED

it might have by not

tapping the
energies and skills and ambitions

RISE—Increased

ited

coverage, the actual propor¬
tion of rated hours applied to in¬

centive

often

work

between 80%

available

terms

hours,

the

possibly

So that in

total

incentive

man-

applies

little

often

only

ranges

and 90%.

than

45%

25%

and not

50%

total man-hours of all

plant labor.
With' a * full-covelrage incentive
plan, you can tap the energies and
ambitions
of
people
for
from
twice to four times
hours

before.

have

you

.^individual incentive plan
stimulate

full

you

100%

can

your

plant employees to understand, to
cooperate

and

work

toward

team¬

busi¬

your

objectives.
Another

Suggests

But there is

sion

Dimension

yet another dimen¬

"incentive

to the

farm

implement

appliance

manufacturers,

There

was

slight rise in

new

makers, automobile producers,
and the construction industry.

Indicate

advance¬

soundly

can

plan

largely with improved
productivity, and only secondarily
with increased
man-power.
As nearly as I can measure

productivity
three

times

added

must
as

account

much

it,
for

gain

And

man-power.

the

em¬

ployee

productivity is largely a
matter of ideas, of imagination and
of

executive

ion.

It is

than

leadership with vis¬

matter of morale

materiel.

quoted

Napoleon is often

saying that morale in

three to

one

compared

What he said applies with
equal
to
industrial
accomplish¬

force

ment, and in the
to

same

ratio, three

one.

Conclusion
In

conclusion, I think

want

you

may

repeat these growth

prospects of manufacturing indus¬
try; they are broad measures of
what your business should be ex¬

pected to do and of your
sonal

own per¬

aid growth of in¬

progress

come:

probably double with¬
the average in¬

16 to 17 years;

well

potential."

The

Far

too

Rucker

Plan,

and

conserve

incentive to heip

terials, supplies,

save

raw

ma¬

and the
like.
One can add an equal in¬
centive to every worker to help
your reduce scrap, breakage, re¬
jects and rework, an equal in¬
centive to improve
quality and
costly drag

customer

new

dimension

potential,"
portunity
firm

income
allow¬

one

the

adds

"incentive

enlarge the op¬
for employees and the
and

from

above

and

returns

doing this

ances.

powers,

25%

that

40%

offered

individual

incentive plans.

employees

this

dimension, and at
the same* time, increasing the pro¬
portion of employee man-hours
covered
serves

new

"incentive
than

twice

by
to

four

to
the

enlarge

by not less

potential"

one-half
as

and

much

times,

company's

upwards
as

When that is done,

ment

will

them.

You

with

the

doesn't
I

gains

company's

man-hours

.4:

available

will

'
em¬

probably

only for one-fifth to

one-

growth

easily

can

kind

belief

been

and

told

abroad

company

that

Cares,

and

nothing

Company

Shares.

Given that belief

on the part of
majority of employees, no one
yet knows the limits of what com-'
a

pany

accomplish

can

work

present
ment.

yearly
more

you

gains

with
its
equip-

and

force

shall

performance

plant-wide

later

see,

from

ranges:

percent above the best pre¬
These

records.

figures,,
please note, are plant-wide gains;
limited-coverage incentives would
have to achieve productivity im¬
provements of twice to three or
times

achieve

these

increases

comparable

plant-wide

result.
Ail

Untapped

Source

This is simply by way of demon¬

strating what I

mean

by expand¬

ing the company's "incentive

po¬

tential."

lies

rich

Here,
and

extending

SOURCES:
the
in

untapped

employee

mind,

COMPANY

The

growth

rates

used

foregoing are taken from "Progress
Productivity and Pay, All Manufac¬

turing

Combined"

(1952)

and

"Wages,

Prices

and Productivity in
Manufactur-i
ing," (1956), published by the The EddvRucker-Nickels Company, Cambridge 38,,

Mass.

'«

With Thill Securities

Corp.

(Special to Tys. Financial CnnoNici.K)

changes

Your

YOUR

—

SHARES."

by executives

and

connects

pany

CARES

and won't share.

care

have

that

potential incentive and the.
resulting conviction of all em¬
ployees that "YOUR COMPANY

with

and; measurable

the

this
viewpoint as a full-coverage and
expanded-incentive opportunities
plan. It is a demonstration, hour¬
ly, daily and continuously of the
management's policy—Your Com¬

heretofore-.

and licked. ;And, this

decided

improvement

appreciate
opinion can do
to short-circuit your plans for im¬
proving productivity.
You can
easily see that with no incentive
plan, or with a limited coverage
plan, the employees have reason

what this

labor-short¬

and shortages of capital for
expansion are in a fair way to
overcome

percentage of
not
believe
that
a

cares ,about
them;
they do not believe that manage¬

vious

Expanding the "incentive area",
into

/. •:

high

management'

well

account

It is this:

ness.

here

another

plans

and expansion.
We shall want-a
Corporation, tells me that in all productivity rate that will
account
surveys
of
employee
attitudes for
three-fourth^ of our expansion.
toward
management,
one' con¬ To assure, it we shall want a new
clusion repeatedly, time and again,
understanding and teamwork, one
shows up in business after busi¬ which I
believe must rest upon a

di¬

such

President of the Opinion Research

the

add

can

with

price fac¬
firm

average

the doing of this, you will
tenth of this output
growth; con¬
simultaneously accomplishing sequently, the
improvement in
something from, which industry
productivity per man-hour must
may
attain even greater gains. be
higher than heretofore if we
My friend, Dilman Smith, Vice- are to reach these
goals of

hour.

You

the

increase

ployee

Concern

for

mension

12 years.

employees.

Managerial

included,

Presently,
most
plans
operate
only in the area
of increased
physicalrunit
output
per
man-

from

in that of the

many man-

ages

steel

share of Production Value

a
far higher percentage of its
employees. Even with such lim¬

rate of capacity was set at 80.4%.
for

future

our

should double its income in 11

production
schedules in Pittsburgh, Chicago, and Youngstown is expected to
boost total steel output by about 2% this week; the nationwide
orders

personal

dividual firm's output in 18 to 20
years.
In terms of dollars of Pro¬
duction Value, with the

four times

STEEL

and

doing

volume

prospects

volume will

to lower the

chases of cotton gray goods lagged again this week.

the

industry growth rates, total man¬
ufacturing
output
in
physical

page

realize

For an
average, and neglecting
here the differences in individual

slight

bedroom

against

detailed statement of clearings for all the
districts for various periods is
given weekly in
the Monday edition of the "Chronicle" under the
caption of "The

this week,
Although

in June equalled those of the similar 1956

month, total volume for thbfiirst six months of this

tele¬

upon

Federal Reserve

work with you

■

improvement in sales of newiand used

vras

based

Our

loss for the week ended

ness

compared with

us,

are

ment,

tor

summer

While

to materiel!

-Dun A/Bradstreefs Trade lieview of the Week

lise

women's Summer sportswear this week, and volume
moderately
exceeded that of a year ago. In some regions there was a slight

decrease

Preliminary figures compiled by

preliminary totals stand at $20,774,884,225
$21,818,624,559 for the same week in 1956. At this center

increases

,/SPORTSWEAR UP—Numerous post-Fourth of July clearance
sales promotions stimulated consumer interest in both men's and

clearings this week show

ago.

year.

'v.'Reports that the Government will consider new price support
legislation stimitlated cotton trading at the end of the week, and
prices advanced moderately. United States exports of cotton in
the week ended last Tuesday, were estimated at 73,000 bales
by
the New York Cotton Exchange. This compared with 79,000 bales
a week earlier and 59,000 bales in the corresponding 1956 week.1
Exports.for the season through July 9. were, estimated at 7,353,000
bales as against 2,143,000 bales in the similar period last year.
.

Be¬

year.

graphic advices from the chief cities of the country, indicate that
for the week ended
Saturday, July 13, clearings from all cities
of the United States from which it is
possible to obtain weekly
clearings will be 4.8% below those for the corresponding week last

since

corresponding week, last

Clearings 4.8% Down for Week Ended July 13

the price

army

Bank

last year.

lard futures prices was attributed to
hogs and vegetable oils.'

greater than the national growth

cooler than

was

goods, although ap¬
parel sales were only moderate; better ready-to-wear and higher
priced sportswear did best, however, while home
furnishings and
appliances were behind last year's levels.

sugar

arrivals at United States ports totaled 2,195,653

means

income?

average, despite the obstacles of

of moderate temperatures air conditioners
and window fans
dropped. According to the New York Times, sales of soft goods
in most stores continued to outdistance hard

rise in

and

growth

dipped slightly. Warehouse stocks in New York rose somewhat
to 302,183 bags, compared with 420,843 bags a year ago.
Cocoa
son

June

lies

bright

Weather

Cocoa futures prices sagged at the end of the week, and prices

1954;

York

cause

Although bookings in rice mounted this week, prices held close
those of the previous week.
Exporters continued to step up

their

New

Here

output

capital and labor shortage.

■

enlarging

According to the Federal Reserve Board's index, department
store sales in New York City for the
weekly period ended July 6,
1957, increased 8% above that of the like period of last vear. In
the
preceding week, June 29, 1957, an increase of 3% was
reported. For the four weeks ending July 6,
1957, an increase
of 5% was registered.
For the period of Jan. 1, 1957 to July 6,
1957, the index recorded a rise of 4% above that of the
correspond¬
ing period of 1956.

prices rose substantially, as buyers stepped up their
However, export demand lagged. Mills anticipate a rise

transactions

volume

executives.

tives reported.

Flour
orders.

trade

to
of

City last week advanced
8% to 10% above the corresponding period a year ago, store execu¬

the comparable week last year.
Average daily
grain and soybean futures were about 25,500,000
bushels in Chicago, compared with 15,000,000 bushels in the prior
week and 22,000,000 bushels in the similar 1956 week.

purchases

June

power
for
cooperation

MILWAUKEE, Wis.—Alfred A.
Nero is

now

with Thill Securities

Corp., 704 North Broadway. He
was
previously with J. P. Lewis
&

Co.

The Commercial and Financial Chronicle

Thursday, July 18, 1957

(302)
s
■

•;

•

★ INDICATES

Registration

Securities Now in
All America

Expansion Corp., Pasadena,

stockholders at the rate of five

Calif.

184,000 shares of common stock, of which
22,000 shares are to be offered to public and 92,000 shares
Issued to promoters.
Price—To public, $1 per share; no

May 3 filed

Proceeds—For general

proceeds from sale to promoters.

Business—Purchase and resale of
oil fruits grown in Brazil and other countries. Under¬
writer—None. LeRoy R. Haynes, of Pasadena, Calif., is

corporate

purposes.

.$8) to
stock
the basis of 5/22nd of

of Allied-Albany

Paper Corp. on

share of Allied stock for each share

of Allied-Albany

stock.

by amendment.

Price—To be supplied

(par $1).
Proceeds — For

expansion, repayment of loans and for working
Underwriter—To be named by amendment.

capital.

drawn. '

Income Fund,

Inc., New York

May 24 filed 500,000 shares of capital stock (par .$1).
Price—At market.
Proceeds—For investment.
Under¬
writer—None. Burton H. Jackson is President. Invest¬
ment Adviser

—

Securities Cycle Research Corp., New

York.

Investors Corp.

Provident

American

Feb. 15 filed 50,000,000

shares of common stock (par one

cent). Price—$2 per share. Proceeds — For working
capital and general corporate purposed. Office—Dallas,
Tex.
Underwriter—Peoples Securities Co., J. D. Grey,
Orleans, John S. Tanner, of Dallas, and C. L.

New

Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.

—

(in denominations of $1,000 each),
120 warrants for common stock and 1,500 shares of com¬

first mortgage bonds
stock

bond has detachable

Each $1,000

(no par).

warrants for 10

shares at $15 per share exercis¬

common

able at any time through June 30^ 1959. Price—Of bonds,
at par. Proceeds — For construction and improvements,

payment of debts and working capital. Office—5020 Wis¬
consin
&

Washington,

Ave.,

Underwriter—Mackall

500,000 shares of common stock (par $1).
supplied by amendment. Proceeds—-To
stockholders.
Underwriters — Eastman Dillon,

certain

& Co., New

Union Securities

Underwriter—None.

Bankers Fire & Marine Insurance Co.

April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11
shares held; rights to expire July 30, 1957. Price—$11
share.

per

Proceeds
Office

accounts.

—

To increase capital and surplus

312 N. 23rd

—

St., Birmingham 3, Ala.

Bonanza Oil

Mine

Corp., Sutherlin, Ore.
Feb. 11 (letter of notification) 71,710 shares of common
stock (par 10 cents).
Price — 75 cents per share.
Pro¬
ceeds—To go to, selling stockholder. Underwriter—L. D.
Friedman & Co., Inc., New York, N. Y.
•

British Industries Corp.

June

(letter

(7/23)
notification) not

exceeding 20,000
(par 50 cents).
Price—To be
supplied by amendment.
(Expected at about $15 per
share.)
Proceeds—To selling stockholders.
Office—80
shares

common

stock

Shore

Road, Port Washington, L. I., N. Y.
-Kidder, Peabody & Co., New York.

Proceeds—Together

stockholders

and employees.
Price—$12.50 per share.
Proceeds—For machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,

be offered first to present limited
partners at the rate of
one $1,000 unit for each
$1,000 of his present investment;
then to public.
Price—$1,000 per unit. Proceeds — To
construct plant; to purchase

machinery and equipment;

outstanding demand notes.

electro-dynamic shaker

equipment.

and

Business—Pro¬

other

vibration

test

Underwriter—None. Robert C. Lewis, Philip
and Thomas
Gouzoula, all of Winchester,
general partners of this Massachusetts

Efromson

Cameron

June

C61j
and

Industries, Inc., New York
300,000 shares

*ce

^ Per share.

development program.
Co., Inc., New York.

common

(8/2)

stock

(par

383,b76

Underwriter—R. G. Worth &

(8/1)

(Canada)

July 11 filed $2,250,000 of 15-year subordinated convert¬
ible debentures due Aug. 1, 1972.
Price—To be supplied
by amendment. Proceeds — To repay bank loans, for
exploration and development of properties and for gen¬
eral corporate purposes.
Underwriters — Lehman Bro¬
thers and Bear, Stearns & Co., both of New York, to
handle sales in the United States; part to be sold
in
Canada through

—

common stock, of which
offered for subscription by

First Boston

The

'lrask & Co., both of New York.
Fidelity Union Trust Co., Newark,
/■' •, p,;....< ■

spencer

Agent

Exchange

Corp., Jackson, Miss.

•

Uranium

Chess

Corp.

Veclitz Co., Inc., 160

Broadway, New York.

Price—At

($25

par

per

operate facilities

and

construct

Colonial

share). Proceeds—
for manufacture ol

Underwriter—Mississippi Chemical

Aircraft

Sanford,

& Co., Inc.,

New York.

(8/1)
stock. Price—$2
per share. Proceeds—To construct mill; for payment on
mining leases and royalty agreement. Underwriter—
Comico Corp.,

Memphis, Tenn.

May 2 filed 750,000

the

shares of

certificates

850

Price—$1,000

Trust.

and

common

Fla.
,
of beneficial interest in
certificate. Proceeds—To

per

purchase, lease or otherwise, and to hold,
subdivide, lease, mortgage, exchange, bargain, sell
r;v-v3c !Jnd every character of real property.
by

acquire
own,

Corp. of America

l-iuorspar

May 28 (letter of notification) 30,000 shares of common
(par $1) to be offered for subscription by common
stockholders on the basis of one new share for each four
stock

Office—433

operations.

ing

Proceeds—For min¬

Price-—$8.50 per share.

shares held.

S. E.

74th Ave., Portland,

Underwriter—None.

Frigikar Corp.
June 6 (letter of notification) 9,000 shares of common
stock
(par 50 cents).
Price — At market (estimated

Proceeds—To go to Daniel D. Dilling¬

$5.50 per share).

Cochran

—1602

ham

St., Dallas, .Texas.

writer—Muir Investment Corp.,
General Aniline &

Consolidated Fenimore Iron Mines, Ltd.

Film Corp., New York

shares of common A stock (no par)

fan.

14 filed 426,988

1,537,500 shares of common B stock

Proceeds—For mining ex¬
penses.
Office—c/o Roy Peers, 9 De Casson Rd., Mon¬
treal, Canada. Underwriters—Thomason, Kernaghan &
Co., Ltd., Toronto, Canada, and R. P. Mills & Co., Ltd.,
asked, per share).

Probable bidders: Blyth & Co., Inc.,

III.

filed 558,100

(par $1).

notes

current

for

equipment;

new

writers

York

Allen

—

for working

and

Shaw & Co., 405

capital.

Under-

Lexington Ave., Nev

Continental

Mineral

Resources,

(letter of

Colo.

Denver,

shares of common stock, (par 10
per share.
Proceeds—For exploration
and development of properties.
Underwriter — Leward
M. Lister & Co., Boston, Mass.
•

Price—$1

Cougar Mine Development Corp.

March
mon

stock

Automatics

(letter of notification) 560,000 shares of com¬
(par one cent). Price — 50 cents pe,r shareFor diamond drilling on company's lands,

—

prospecting expenses, working capital and other corpor¬
ate purposes.
Office—83 Campfield St., Irvington. N .T
Underwriter—Roth & Co., Maplewood, N. J. Offering—
Expected this month (July).

filed 631,925 shares of common stock (par 10
Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwrite*
Herrin Co., Seattle, Wash.
it Diamond Alkali Co., Cleveland, Ohio

Corp., 2572 Ridgemore Road, N. W.,

dress— c/o Positronic

Underwriters—Armstrong

Atlanta/ Ga.
Ga.

•

Co., Atlanta,

/. •

Inc., Washington, D. C.

Credit,

17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, clue Sept. 1, 1971, with detachable
warrants, to
purchase 160,000 shares of participating

Aug.

preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants.
Price—$500 per unit. Proceeds—
For expansion and

working capital. Underwriter—None
be made through selected dealers.

Offering to

Application is still pending with SEC.
General

Parking,

Inc.

(letter of notification) 240,000 shares of common
stock (par $1). Price—$1.25 per share. Proceeds—To re¬
tire outstanding debt; for expansion of subsidiary cor¬
June 18

poration and for working capital.
Office—c/o Edwin
F. Clements, 5312 Glenwood Ave., Youngstown, Ohio.
Underwriter—L. L. LaFortune & Co., Las Vegas, Nev.
•

General Telephone

Corp.,

New York

May 24 filed 1,480,787 shares of common stock (par $10)
and

170,000 shares, of 5.28%

convertible preferred stock

$50). being offered in

exchange for common and
Telephone Co. on the

(par
basis

May 7
cents).

Ga.

shares of common
stock (par $1).
Price—$2 per share.-Proceeds—To es¬
tablish production facilities for manufacture and assem¬
bly of controls: and for other corporate purposes. Ad¬

stocks

^referred

Daybreak Uranium, Inc., Opportunity, Wash.

Corp., Atlanta,

May 23 (letter of notification) 100,000

named.

Continental Mines & Metals Corp., Paterson, N.J.

cents).

C., but bidding has been postponed.

General

Inc.

notification) 300,000 shares of com¬
mon
stock
(par 10 cents).
Price—$1 per share. Pro¬
ceeds—For mining expenses.
Office—c/o Registrar &
Transfer Agent, Nevada Agency & Trust Co., Cheney
Bldg., Reno, Nev.
Underwriter—Birkenmayer & Co..
11

654, 101 Indiana Ave., N. W., Washington 25,

13 at Room

17, N. Y.; and Shaw & Co., San Marino, Calif.

June

and The First Bos¬

Corp-.T(jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore; Forgan & Co. (jointly). Bids —Had been
scheduled to be received up to 3:45 p.m. (EDT) on May
and

General

shares of class A common stock
Price—$5 per share. Proceeds — To discharge
payable, including bank loans, and long
debt in the total sum of approximately $1,030,000:

March

Pro¬

the

ton

Montreal, Canada.
International Corp., Chicago,

(par $1).

Attorney General of the United States.
Underwriter—To be determined by competitive bidding

ceeds—To

(letter of notification) 150,000 shares of common
stock (par $7). Price—At market (closing price on To¬
ronto Stock Exchange as of June 14, 1957 was $1.82 bid

Conticca

Under¬

San Antonio, Texas. '

June 26

and $1.85

South.

the

Statement effective July 5.

Pompano Beacn,

Trust,

filed

uactii/o,

-e

For industrial and

Me.

July 5 filed 248,132 share's of common stock (par 10tf).
Price—At market.
Proceeds—To selling stockholders.
Underwriter—Glick

Marcn

fox^.lteu

—

Mississippi

development

business

Proceeds

employees.

and

officers

Ore.

Corp.,

each, of which 500,000 shares are to be re¬

tor exercise oi opiiuiia

Underwriter—None.

Corp., Yazoo City, Miss.
•

The price of the remaining 2,500,000 shares

City, Miss.

May 1 filed 150,000 shares of class C common stock to
be offered for sale to farmers and other users of fertilizer
To

will

Florida

Coastal Chemical Corp., Yazoo

materials.

share.

per

served

(8/20)

(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—5616 Park Ave., Montreal, Canada. UnderwriterJean R.

Mississippi

First

Underwriter—None.

Canadian underwriters.

May 14 (letter of notification; 600,000 shares of common
stock (par $1—Canadian).
Price—50 cents per share.

1.3

Peninsular
of

General

common

for

each

of Peninsular common,

and one-half share of General
preferred share for each share of Peninsular $1 pre¬
ferred, $1.30 preferred and $1.32 preferred. No exchange
of preferred stock will be made unless at least 80% of
the
Peninsular
preferred stock
is exchanged.
Offer

July 12 filed 190,000 shares of common stock to be issued

will expire

Aug. 14. Dealer-Managers—Paine, Web¬
& Curtis and Stone & Webster Securities

Corp.

Emerson
June
nated

filed

common

stockholders

the

basis

June

denominations
short term

1022

principal amount of debentures for each 20 shares
stock held of record July 9, 1957; rights to expire on.

Price—100% of principal amount.

Proceeds—

D. C.

(letter of notification) $150,000 of 10-year 6%
convertible debentures.
Price—At par (in

subordinate

S100

July 23.

ber, Jackson

Genie Craft Corp., Washington,

Electric Manufacturing Co.

$3,390,000 of 5Vz% convertible subordi¬
debentures due July 15, 1977, being offered for

subscription

679,469 shares of
are

ajid

uorp.

April 10 filed 10,000,000 shares of common stock (par
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
tional shares at any time prior to Nov. 30, 1959 at $4.50

Proceeds—For exploration

M'nes» Inc., Kings Mountain, N. C.
u

Dealer-Managers

extended.

unless

vestments in

upon

filed
,

holders

eral, acceptance by not less than 80% of the Colonial
shares.
Offer will continue to and including July 26,

exercise of options to purchase thrift certificates
pursuant to company's 1957 Employee Thrift Plan.

Limited Partnership.
•

lunds,

basis

•

Proceeds

Underwriter—None.

Calidyne Corp., Winchester, Mass.
May 1 filed $1,250,000 of Limited Partnership Interests to

duces

other

in exchange for 100,000 shares of Colonial
Co. of America capital stock (par $10)
of four Federal shares for each Colonial
Offer will become effective upon acceptance by
of 80% of Colonial stock, or, at option of Fed¬

Insurance

the

Share.

April 24 filed 400,000

Batteries, Inc.
March, 28 (letter of notification). 14,000 shares of com¬
mon stock
(par $10) to be offered for subscription by

and to reduce

with

and to make advances to and in¬
stocks of subsidiaries. Underwriter—-Paine,

shares of capital stock (par $4) be¬

purchase properties

Underwriter

C & D

Conshohocken, Pa.

Neb. (8/15)
convertible subordinated
Price—To be supplied by

filed

amendment.

term

Underwriter—-N one.
•

York.

^Central Telephone Co., Lincoln,

Co.

Insurance

filed 400,000

and

ir A. S. C. Lodge, Inc.
July 2 (letter of notification) $50,000 of non-interest
bearing promissory notes due July 15, 1977. Price—At
par (in denominations of $100 each). Proceeds—For con¬
struction of a lodge.
Office—178 Main St., Burlington,

Under¬

offered

ing
on

Southeastern Securities Corp., New York.

Coe, Washington, D. C.

Vt.

(7/24)

anhydrous ammonia.

£ American Trailer Co., Washington, D. C.
^July 11 (letter of notification) $120,000 of 10-year 6%

mon

Inc.

filed

Price

Federal
June 7

Life

Products,

• Charter Oil Co. Ltd.

filed 250,000 shares of common stock (par 50
Price—$5.50 per share. Proceeds—For working
capital and other corporate purposes. Underwriter—^Van
Alstyne, Noel & Co., New York. Offering—Expected to¬
day (July 18).
24

cents).

American

stockholder. Statement to be with¬

principal

and

dent

Webber, Jackson & Curtis, New York.

El Segundo, Caiif.

Altamil Corp.,
June

repay

$1,750,000 of
debentures due July 1, 1972.

Alsco, Inc., Akron, Ohio
200,000 shares of common stock

expenditures and working capital."

capital

Co., both of New York; and Newhard, Cook & Co., St.
Louis, Mo.

July

June 28 filed

ISSUE

public.
Price—At par ($1 per share).
Proceeds—
loans, for exploration and development work,
construction and working capital.
Underwriter — None.
A. S. MacCulloch of Vancouver, B
C.. Canada, is Presi¬

held; and

fhe

July

Chicago, III.

Paper Corp.,

For

REVISED

writers—Smith, Barney & Co. and Van Alstyne, Noel &

Carter

• Allied

ITEMS

•

the remainder will be offered to

four

President.

July 15 filed 21,000 shares of common stock (par
be offered in exchange for outstanding common

additional shares for each

ADDITIONS

SINCE

18th

$100

each).

Proceeds—To

obligations and for working capital.

St., N. W., Washington, D. C.
Whitney & Co., Inc., Washington, D. C.

discharge

Office—

Underwriter

—

Number 5656

186

Volume

The Commercial and Financial Chronicle

Georgia Casualty & Surety Co.
May 10 (letter of notification) 10,000 shares of common
stock
(par $5> to be offered first to stockholders and
agents, then to the public. Price—$30 per share. Pro¬
ceeds
To expand and finance the company's regular
line of business.
Office—70 Fairlie St., N. W., Atlanta,
Ga. Underwriter—None. Dan D. Dominey is President.
—

Getty Oil Co.,
17 filed

June
to

for

offered

York

shares of

sale

from

time

(par $4)
New

the

Exchange. Certain private placements may
be made. Price—Either at the market or at a price not
bid

the

than

asking
price quoted on the Exchange at time of such offering.
-Proceeds—To J. Paul Getty, President, who is the selling
price

higher

nor

Underwriter—None.

stockholder.

t)00

additional

Price—At market.

Automatic

Gibbs

May

crease

Moulding Corp.

filed $1,000,000 of 6% convertible debentures
31, 1967. Price—At par.. Proceeds—To incompany's activities and - for working capital.

Office—Henderson, Ky. Underwriter—Cook Enterprise,
Inc., Ill S. 7th St., Terre Haute, Ind.
~

Gas Corp.,

Natural

★ Great

Calif.

Los Angeles,

shares of comippn stock (par 50
*'cents) to be offered for subscription by common stock¬
holders of Great Lakes Oil & Chemical Co. on basis of
one-fourth share of Natural Gas stock for each share of
July

779.393

filed

& Chemical stock.

Oil

Proceeds
—For exploration costs, improvements, expansion, etc.
Underwriter—Dempsey-Tegeler & Co., St..Louis, Mo.
Price—$1.25 per share.

Inc., Denver, Colo.

* Hamilton Funds,

additional $100,000,000
Certificates;/ $19,400,000 addi¬

Juyl 15 filed (by amendment)
'

Investment

Periodic.

ISSUE

NEW
July 18

CDTi

i^oon

July
Mercast Corp.

Import Corp.,

&
...

June

Mann

filed

and

Precision

•

May 20 filed 650,000 shares of common stock (par 50
Price—$1 per share. Proceeds—For drilling and
completion of test wells; for acquisition and exploration
of additional properties; and for working capital. Office
—1749 Pennsylvania St„ Denver 3, Colo. Underwriter—
None. W. Clay Merideth is President.

cents).

Dec.
one

Seminole Oil

H'11 Albert

•:

Co.,

British
.

Inc.)

CALENDAR

Uranium

Pacific

Gas &
■

Dillon,

Union

(Tuesday)
Bonds

Power

(Bids

be invited)

500,000

Co.)

First

to be

Natural

Consolidated

(Bids

$10,500,000

Corp.)

Boston

invited)

$30,000,000

11:30

Weld & Co. and Wm.

$1,125,000

and

notes

79,000

(Bids

EDT >

noon

$4,260,000

Lehman

$50,000,000

Brothers)

(Bids

Utah Power

Ripley &

July 25

(Bids

....

Noyes

invited)

$15,000,000

Common

invited)

400.000

Co.)

July 31

EDT)

and

Corp.

Bear,

$2,250,000

Common

Securities Corp.)

August 2
Industries,
<R,

(Bids

Co.)

(Friday)
Co.,

Consumers

Debentures
$25,000,000

Bonds or Preferred

(Bids

Common

Brothers;
First

Goldman.

Boston

Corp.)

Northern

(Bids

Thompson
(Offering

ajn.

Products,
common

Ohio

CDT)

$18,000,000

& Co.)

by Smith,

$20,000,000)

Corp., Ardmore, Pa.
$250,000 of 6% renewable subordinated
debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At
par (in units of $100 and
$500 each). Proceeds—For working capital. Office—\7
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbing
Co.,
New York; and Berry &
Co., Plainfield, N. J.
Mascot Mines, Inc.,

Kellogg, Idaho

(letter of notification) 800,000 shares of common
-Price—At par (17V> cents per share). Proceeds

—For

mining expenses. Office—Sidney Bldg., Kellogg,
Idaho, Malcolm C. Brown is President. Underwriter—
Standard Securities Corp., Spokane,
Wash., and Kellogg,
Idaho.

Inc., New York

12 tiled 100,000 shares of common stock

Juiy

offered

for

sale

employees

(par $18)

the

company

vMcLouth Steel Corp. (7/24)
July 3 filed 105,000 shares of cumulative convertible
preferred stock (par $100). Price—To be supplied by
amendment. Proceeds—For expansion
program. Under¬
writer—The First Boston Corp., New York.
Mercast Corp., New York, N. Y. (7/19)
24 filed 420,778 shares of
capital stock

(par 10
to be offered for subscription by stockholders Of
July 18, 1957 on the basis of two new shares for

cents)

held; rights to expire on Aug. 2. Price
per share. Proceeds—For expansion program, to
outstanding notes to Atlas Corp. and for working
capital. Underwriter—None.
—$4.25

Merchants Co.

(letter of notification) $300,000 of 6% converti¬

subordinate
and

debentures

due

1972

preferred stockholders

offered

record

July

11, 1957. (Debentures are convertible into common stock
subsequent to July 31, 1962 and prior to Aug. 1, 1971,
limited amounts and freely thereafter as described).

Price—At

par

working capital.

units

$125

each.

Proceeds—For

Office—300 East Pine St., Hattiesburg,

Underwriter—Lewis & Co., Jackson, Miss.

it Military Investor Development Corp.
July 2 (letter of notification) 57,500 shares

EDT) $35,156,760

Power

$250,000,000

a.m.

EST)

$28,000,000

Preferred
11

a.m.

EST)

$7,000,000

(Tuesday)

(Bids to be invited)

$20,000,000

for each 20 shares
per

held; rights to expire on Aug. 1, 1957.
share. Proceeds—For expansion program.

Dillon, Union Securities & Co.,

New York.

Mississippi Valley Portland Cement Co.
26, 1956 filed 1,600,000 shares of capital stock (no
of which 708,511 shares are subject to an offer of

par)

Price—$3 per share.

Proceeds—For comple¬

ing capital. Office—Jackson, Miss. Underwriter—None,
offering to be made through company's own agents.

Oil

Corp.,

Billings,

Mont.

July 11 filed 22,474 shares of class A common stock and
539,376 shares of class B common stock to be offered in
one

class A share and 24 class B shares, which

shall not be separately transferable until May 1, 1960. Of
the units, 14,474 are to be issued in exchange for or con¬
version of working interests in joint lease acreage oper¬

ations, etc., and 8,000 are to be offered for subscription
by existing stockholders, on a pro rata basis. Price—$75
per unit.
Proceeds—For development and exploration
costs, etc.

Bonds

Virginia Electric & Power Co

Underwriter—None.

being offered for subscription by common stockholders
of record July 16, 1957 at the rate of one share of new

units of

Bonds
11

—

Minneapolis-Honeywell Regulator Co.

^ Mon-O-Co

(Tuesday)

(Bids

Inc.—Bonds

$50,000,000

Telegraph Co.—Debentures
19

York, N. Y.

$5.10 per unit. Proceeds — For
Office—Suite 2510, 521 Fifth Avenue,

tion of plant, provide for general creditors and for work¬

(Tuesday)

invited)

•

rescission.

$35,000,000

(Tuesday)

EDT)

a.m.

Price

Dec.

-Bonds
EDT)

class of stock.

Underwriter—Eastman

(Monday)

December 3

Debentures

stockholders—underwritten

Baimey <fc Co. and McDonald

noon

Ohio Power Co

Bonds

(Minn.)

Finance

28 filed

Price—$85
Debentures

November

and The v

$6,000,000

Inc

$20,000,000

(Wednesday)

October 29

(Bids

(Tuesday)

Staf^c Power Co.

American Telephone &

(Bids

August 13

EST)

a.m.

11:30 a.m.

(Bids

Co.;

Co., Inc., Palm Beach, Fla.

June 24 filed 331,237 shares of common stock (par $1.50)

—.Bonds

Electric Co..

Consolidated Edison Co. of New York,

110,000 shares

Sachs

$50,000,000

(Tuesday)

October 22

Indianapolis Power & Light Co.——1—-Preferred
(Lehman

Power

$300,000

(Thursday)

August 3

Marion

New

Power

Class A Common

Inc

(Kidder, Pea'oodv & Co.)

October 21

Cook

ic Managed Funds, Inc., St. Louis, Mo.
July 15 filed (by amendment) 5,000,000 additional shares
of common stock (par one
cent). Price — At market.

working capital.

(Tuesday)

$25,000,000

(Offering to common stockholders—bids

Consumers

(Monday)

August 5
Sanders Associates;

Inc.)

October

$1,500,000

Inc.-.—————:

Worth

Steamship & Salvage Co., Miami, Fla.
(letter of notification) 300,000 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
—To purchase a ship and for
working capital. Under¬

of pre¬
(par $5) and 57,500 shares of common stock
(par 10 cents) to be offered in units of one share of each

(Thursday)

invited)

Indiana & Michigan

—

(Southeastern

Cameron

Stearns &

October

——Debentures

Co., Inc

Brothers

(Lehman

(Thursday)

August 1

Comico

(Bids

$4,320,000

Debentures

$100,000,000

$12,000,000

Equipment Trust Ctfs.

noon

Isthmus

(Tuesday)

October 8

(Wednesday)

Norfolk & Western Ry

Charter Oil

Telephone Co

Commonwealth Edison Co

(Bids

$10,000,000

System, Inc

(Bids

Debentures

—

Bell

Gas

(Tuesday)

—

Underwriters, Inc., also of Englewood,

ferred stock

$6,000,000

EDT.t

noon

(Hemphill,

October 3
Columbia

Tea

Preferred

Bonds

(Bids to be invited)

Equip. Trust Ctfs.

July 30
National

$8,000,000

Light Co

October
Southwestern

(Thursday)

common

May 21

Miss.

$5,000,000

Inc.)

Co.

Southern Pacific Co
.

Bonds

——Preferred

Tung-Sol Electric Inc

shares.

common

unit.

per

mon

ble

Light Co

(Bids
(Harriman

invited)

Utah Power &

Sears Roebuck Acceptance Corp.———Debentures
/ (Goldman, Sachs & Co.; Halsey, Stuart & Co. Inc.; and

common

Proceeds—For investment.

June 10

(Tuesday)

Northern Illinois Gas Co

$2,220,000

one

jc Investors Mutual, Inc., Minneapolis, Minn.
July 15 filed (by amendment) an additional 15,000,000
shares of capital stock (par 50
cents). Price—At market.

Equipment Trust Ctfs.

September 24

Equip. Trust Ctfs.

Pittsburgh & Lake Erie RR

common

units

repay

$25,000,000

(Wednesday)

EDT)

noon

Debentures

EDT)

a.m.

September 18

Son & Co.)

Harper

each three shares

(Tuesday)
Co

Gas

Norfolk & Western Ry._
(Bids

(White,

Colo.

record

Pacific Natural Gas Co.——_-Notes & Common
•

offered

three warrants to buy three

one

writer—American

June

Debentures

Jersey Bell Telephone Co.—
(Bids

Preferred

additional

Each warrant entitles holder to
share at $2.75 per share. Proceeds
—To acquire stock of fire insurance unit and for
general
corporate purposes. Office — Englewood, Colo. Under¬

•

New

V-

McLouth Steel Corp
(The

$50,000,000

(Wednesday)

September 11

——Common
Securities

$15,000,000

$25,000,000

Product&,iJnc*-

(Eastman

Bonds

be invited)

September 17
Carter

share arid

Inc.
(par $1)

stock

common

purchase 354,420

under its "Executive Stock Option Plan."

(Wednesday)

Bonds

Inc.)

stock

common

Insurance Investments,

118,140 shares of

• McKesson & Bobbins,

(Tuesday)

September 10
Duke

July 24 (Wednesday)

Debentures

$90,000,000

& Electric Co

Louisville Gas

-Common

/i'XHalsey, Stuart & Co.

$300,000

Inc.)

invited)

September 4

Tennessee Gas Transmission Oo f._
Debentures
7' (Stone &- Webster Securities Corp;,' Wliite, "Weld-'& Co.; and

filed

warrants

stock.

Common

Veditz Co.,

September 3

-Bids 8:30 a.lh; PDT) $00,000,000

and

June 3

(Tuesday)

Telephone & Telegraph Co

..Common

Electric Co.—

June

Debentures

Cincinnati & Suburban Telephone Co.—.Common
(Offering to stockholders—no underwriting)

industries.

Pacific

(Thursday)

Co.-—-.

Corp
R.

(Bids

V;..;-'.Kidder, Peatyody 6cCo.) $300,000

Underwriter—Franklin Securities Co.,

March

(Jean

$200,250

ing capital, etc.
Dallas, Texas.

ment.

70,000 shares

— —

Price

Proceeds—For work¬

Proceeds—For investment.

(Tuescfayj,

July 23

(par

cent). Price—$1 per share. Proceeds—To equip and

(Bids to

stock

shares held.

by amendment.

establish five super launderettes and for working
cap¬
ital.
Underwriters—Names to be supplied by amend¬

Chess

(Monday)

& Gas Corp.—

common

(no par)
stockholders at the

seven

—To be supplied

Duplex Corp., San Francisco, Calif.

21, 1956 filed 500,000 shares of

Corp.—Debentures

July 22

share for each

new

writer—Anderson
International

—Class A Common

Transformer

Distrib¬

Mann Investors,

Ignacio Oil & Gas Co., Denver, Colo.

August 20

(John R. BoJand & Co.,- Inc.) $299,880

(par $1).

investment.

(Paine, Webber, Jackson & Curtis) $1,750,000

one

purchase

Inc., Des Moines, la., of which Charles F. Martin is also
President.
Office—216 E. Monroe St.,
Springfield, 111.

Central -Telephone

Common

Edwards & Sons)

Proceeds—For

Investment Manager—Horace

(Offering to stockliolders—no underwritingf 420,778 Shares

(A.

III.

100,000 shares of capital stock

market.

rate of

Price—$3.75

Fund, Inc., Springfield,

Fidelity Insurance Co.

International

Houston, Texas

Co., Houston, Tex.
Horace

International

March 28 filed 100,000 shares of common stock
to be offered jfor subscriotion

(letter of notification) 100,000 shares of common
stock. Price—At par ($3 per share). Proceeds—For in¬
ventory, working capital, etc.
Underwriter—Benjamin

August 15

X—____ 1L

Polymer Corp.

Proceeds—For investment.

Feb. 27

§3,000.000

(Friday)

H-DA.

vestment.

(Thursday)

Chicago, Rock Island & Pacific RR—_Eq. Tr. Ctfs.
'Bids

Series

Fund, Inc., Cincinnati, Ohio
July 15 filed (by amendment) an additional 10,000 shares
of capital stock.
Price—At market.
Proceeds—For in¬

Price—At

March

due
'

Shares,

Haydock

utor

Fund

the

than

Shares, Series H-C7; and $17,600,-

Hamilton

Holy Land
stock

common

Stock

♦lower

tional Hamilton Fund

Wilmington, Del.

100.000

(303)

Underwriter—None.

Continued

page

The Commercial and Financial

shares of common
stock.
Price—At par ($1 per share). Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office
203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
of notification) 300.000

Philadelphia, Pa.

...

Mount Wilson Mines,

Inc., Telluride,

A common stock
Price—SI per share. Proceeds—For ex¬
ploration and related purposes, including construction of
a mill.
Underwriter — Investment Service Co., Denver,
400.000 shares of class

filed

June

(par 50 cents).

& Telegraph Co.
shares of capital stock (par $100)

States Telephone

Mountain

filed 584.176

June

of record
each five
'shares held: rights to expire on July 31.
Price — At
par
($100 ner s^areh
Proceeds — To repay advances
being offered for subscription by stockholders
1957 on the basis of one new share for

Probable bidders: Halsey, Stuart

bidding.

competitive

Telephone & Telegraph Co., the parent,
86.74% of the presently outstanding shares.

from American

'Which owns

Uiiucrwrner—IN one.

Fund, Inc. (N. Y.)
May 9 filed 5,000 units of undivided interests in Munic¬
ipal Investment Trust Fund, Series A. Price—At market.
Proceeds—'For investment. Sponsor—Ira Haupt & Co.,
Municipal Investment Trust

Investment Trust for Profit SharingInc., Richmond, Va.
shares of capital stock (par $1),
be offered trustees of profit sharing retirement plans.
Retirement Plans,

filed 50.000

Proceeds—For investment. President
Coleman Andrews. Office — 5001 West Broad St.,

$1,125,000

filed

May

1963

due

6V2%

interim

subordinate

79,000

and

common

stock

(par $1), of which the notes and 45,000 shares of stock
to be offered in units of a $25 note and one common

are

shares of stock are to be

remaining 34,000

The

share.

by company for subscription by common stock
basis to about July 31. Price—To be sup¬

offered

l-for-3

Proceeds—To repay short-term

amendment.

plied

liabilities

current

other

and

debt

and for

construction

Underwriters—White, Weld & Co., New York;

program.

Son & Co., Seattle, Wash.

Wm. P. Harper &

mortgages. Office—550
Underwriter — Stuart

acquire real estate properties and
Fifth Ave., New York 36, N. Y.
Securities Corp., New York.
- -

^ Mutual Trust, Kansas City, Mo.
July 15 filed (by amendment) an additional 1,000,000
shares of beneficial interest. Price—At market. Proceeds
—For investment.

^ Nash Oil Co.
July 5 (letter of notification) 15,000 shares of common
stock (par $10).
Price—$17 per share. Proceeds—For
development of oil and gas properties. Office—Oil & Gas
Bldg.. Wichita Falls, Tex. Underwriter—None.
Nassau

Fund, Princeton, N. J.

May 8 filed 250,000 shares of common stock. Price—At
market.
Proceeds—For investment.
Office—10 Nassau

Advisor

St., Princeton. N. J. Investment
Hoisington, Inc., same address.

—

Harland W.

York
shares of common stock (par one
cent). Price—$1.25 per share. Proceeds—For acquisition of properties; for ore testing program; for assessment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Under,
writer—Gearhart & Otis, Inc., New York. Statement ex¬
National Lithium Corp., New

Feb. 19 filed 3,120,000

♦

pected to be amended.
National

June

Tea

being offered for subscription by common
of record July 10. 1957 on the basis of one new share for
each
10 shares
held; rights to expire on August
1.

Chicago, III.

Co.,

common

(par $5)

stock

per share.
Proceeds—For construction pro¬
Underwriters—Lehman Brothers, Eastman Dillon,
Securities & Co., Bear, Stearns & Co, and Dean

Union

Witter & Co.

(jointly).

Underwriter

York, N. Y.

Bush Securities Co., New

—

(par $5)
Milprint,
Inc., Milwaukee, Wis., on a share-for-share basis. The
offer, which became effective July 1, will expire on
July 19. Underwriter—None.
Lehman Brothers acted
May 28 filed 385,000 shares of common stock
being offered in exchange for common stock of

intermediary in negotiating the transaction.

Plymouth Fund, Inc., Miami, Fla.
Feb. 5 filed 500,000 shares of capital
Price—At

Chicago, 111. (7/30)
sinking fund debentures

•

New
Dec.

14,

Brunswick

debentures

due

amendment.

Jan.

Power

25-yea^ sinking fund

advanced

Commission

The

New

bank
loans. Underwriter—Halsey, Stuart & Co. Inc., New York
and Chicago. Offering—Indefinitely postponed.
Northern

States Power Co.

(par $1).
Under-

filed

70,000

(7/19)
of common stock,

class A

(par $1). Price—$19.50 per share. Proceeds—To retire
bank loans, to purchase equipment, to advance additional

capital to company's wholly-owned English
to acquire additional land and construct a
research development laboratory, and for other real

working

subsidiary,
new

purchases and working capital.

estate
G.

Edwards &

Precision
June

St.

Sons.

Underwriter—A.

Louis, Mo.

(Minn.)

repay

(8/13)

due

debentures

1, 1967 and 29,400
shares of common stock (par 20 cents)
to be offered
in units of $500 of debentures and 50 shares of stock
at

$102

or
per

$100 of debentures and 10 shares
unit. Proceeds — To repay out¬

indebtedness

standing

and for

Office—2218 W. Lake

general corporate pur¬
St., Chicago, 111. Under¬

Public

Service

Electric

Gas

29 filed 250,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.

May

Proceeds—For construction program. Underwriter—Mer¬
rill Lynch. Pierce, Fenner & Beane, New York. Offering

Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬

tions,

Inc.;

for

and

working

capital.

Business—Tele¬

Offering—Date indefinite.

writer—To be determined

• Reed

July 12 filed $320,000 of interests in company's em¬
ployees' stock purchase plan, together with 10,000 shares
of common stock which may be acquired pursuant to

Riter & Co.

(jointly); The First Boston Corp. and Blyth
(jointly); Equitable Securities Corp.; Kuhn,
Loeb & Co.: Harriman
Ripley & Co. Inc. Bids—Expected
to be received up to 10 a.m.* (CDT) on Aug. 13.

said plan.

Oil Ventures, Inc.
May 13 (letter of notification) 2,500,000 shares of com¬
mon stock.
Price—At par ($10 cents per share).
Pro¬
ceeds—For development of oil and gas
properties. Office
—725 Judge Bldg., Salt Lake
City, Utah. UnderwriterMid America Securities, Inc. of
Utah, Salt Lake City,

writer—None.

Insurance Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share.
Proceeds

Utah.

—To

Oxford
-

County Telephone & Telegraph Co.

April 18 (letter of notification) 6,000 shares of
stock to

be offered to

present stockholders

common

the basis

L. Aaron &

Co., New

Resource

one

preferred

stock

common

stock

class

each

and

to be offered

stock.

$2)

(par

(par $1)

Price—$5

dent.

D. John Heyman of New York

is Presi¬

Investment Advisor—Resource Fund Management

Price—To

St. Louis

Realty Co., who

is the selling stockholder
Underwriter
Yates, Heitner & Woods, St. Louis, Mo.
Offering—Expected in the near future.
—

St.

Paul Fire & Marine

None.

Western stock.

of
of

Western
1.39

supplied by amendment.
Proceeds—To
installment receivables from Sears,
Underwriters—Goldman, Sachs & Co.,

customer

Roebuck

Co.

Halsey, Stuart & Co.

•

Seminole

mon

Inc. and Lehman

Oil

Gas

Tulsa, Okla.

Corp.,

(7/22)

(letter of notification)

275,000 shares of com¬
(par five cents). Price—75 cents per share.
For development of oil and gas properties.

stock

Proceeds

—

Underwriter—Albert &„Co.,

May

Brothers, all of

York.

June

Inc., New York, N. Y.

Inc., New York
14 filed $1,000,000 of nine-month 8%
Plan,

fund notes.
(in denominations of $100 each). Proceeds
working capital and other corporate purposes.

Price—At par

—For

Underwriter—Sire Plan

Portfolios, Inc., New York.

Southeastern

Fund, Columbia, S. C.
June 3 filed $2,000,000 of 6%% sinking fund subordi¬
nated debentures due June 15, 1972, of which $1,500,000
principal amount are to be offered for subscription bystockholders; the remaining $500,000 principal amount,
plus any unsubscribed debentures, to be publicly of¬
fered.
Price—To stockholders, 95% of principal amount;
and to public, at 100%.
Proceeds—For working capital.
Underwriters—Smith, Clanton & Co., Greensboro, N. C.;
Powell & Co., Fayetteville, N. C.; and Frank S. Smith &
Co., Inc., Columbia, S. C. Offering—Expected this week.
Southern

Industrial

Corp., Jacksonville, Fla.
150,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—To
be added to the general funds of the company. Under¬
June

writer

(letter of notification)

Pierce, Carrison, Wulbern, Inc., Jacksonville,

—

Steadman Investment Fund,

Lifo

shares of

r*r».

St. Paul

TTo7o»rr,

stock for^ each

Inc.,

East

Orange, N. J.
May 10 filed 100,000 shares of common stock (par $1)
to be offered in connection with merger into this Fund
of

Fund

Fortune, Inc., Fortune II, Inc., Fortune m,

Inc. and Fortune IV, Inc. Underwriter — William Allen
Steadman & Co., East Orange, N. J. Offering—Expected

early in July.
27

Film Corp.

( John G.)

(letter of notification)

stock

(par 25 cents).

199,999 shares

ceeds—For

production

Strato-Missiles,

Inc.

June 7 (letter of notification) 300,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To

develop Hatfield propulsion system, and other projects;
for purchase of additional facilities and for working
capital.
Business—To produce machinery and equip¬
Office—70 East

ment.

45th

derwriter—Kesselman &

St., New York, N. Y.
Co., Inc., New York.

Un¬

Summers Gyroscope Co.
May 20 filed 250.080 shares of

common stock
(par $1)
being offered for subscription by common stockholders
of record May 31, 1957 on the basis of two new shares
for each five shares held; rights to expire on July 19.
Price—$3 per share.
Proceeds—For working capital and
general corporate purposes.
Office—Santa Monica, Cal.

Reeves

Co., Beverly Hills, Cal.

Tax

Exempt Bond Fund, Inc., Washington, D. C.
June 20 filed 40,000 shares of common stock. Price—$25
per share.
Proceeds — For investment. Underwriter—•
Equitable Securities Corp., Nashville, Tenn.

Telestudios, Inc.
(letter of notification)

June-14
mon

180,000 shares of com¬
Price—$1.50 per share. Pro¬
To purchase and install two Ampex videotape

stock

ceeds

—

(par 10 cents).

recorders, for equipment and working capital. Office—
1481 Broadway, New York City.
Underwriter—Joseph
Mandell

Co., New York.

July

reoay

(7/23)

filed

$25,000,000 debentures due Nov. 1, 1977.
supplied by amendment.
Proceeds—To
short-term loans. Underwriters—Stone & Webster

Price—To

Co.

The offer is condiitoned upon acceptance

com¬

Tennessee Gas Transmission Co.

i\/r~-±

Price—$1.50 per share.

Pro¬
films, working capital, etc.
Office—113 West 57th St., New York.
Underwriter —
Joseph Mandell Co., New York.

mon

Insurance Co.

June 25 filed 417,000 shares of capital stock (par $6.25)
to be offered in exchange for the outstanding capital
stock

purchase

Co., Inc., 60 Broadway, New York. N. Y.

Proceeds—For working capital. Office—2621
2nd Ave., Miami, Fla.
Underwriter—Floyd
Cerf, Jr. Co., Chicago, 111.

Underwriter—Daniel

Fund, Inc., New York

March 29 filed 100,000 shares of common stock (par $1).
Price—At market.
Proceeds—For investment.
Under¬

rate

Underwriter—E

Roller Bit Co., Houston, Texas

preemptive rights, thereafter to the public.
Price—
At par ($5 per share).
Proceeds
For converting ex¬
change at Turner from a manual service to a dial automatic exchange. Office—Buckfield, Me. Underwriter—
—

(

Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
i

releases

Co., Inc.

Kidder,

unit.

Stratford

vision

units of

June

Co.

Pierce, Fenner and Beane, Kidder, Peabody & Co*, and
White, Weld & Co. (jointly): Lehman Brothers and

convertible

shares of

50,000

10-year

June

York.

by competitive bidding. Pro.bable bidders: Halsey, Stuart & Co. Inc.: Merrill Lynch,

—

Fla.

Corp. (7/19)
(letter of notification) $294,000 of 6%

July 3 filed $18,000,000 of first mortgage bonds due Aug.
1, 1987.
Proceeds—For construction program. Under.

Underwriter

purposes.

Transformer

—Temporarily delayed.

of)

1982. Price—To be supplied by

Proceeds—To

Electric

Brunswick

(Province

1956. filed $12,000,000 of

stock

investment.

—

Polymer Corp., Reading, Pa.

June

due

Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans and other indebtedness and
for other corporate purposes.
Underwriter—Hemphill,
Noyes & Co., New York.

corporate

cumulative

writer—John R. Boland & Co., Inc., New York.

Aug. 1, 1977.

Proceeds—For

market.

Plymouth Bond & Share Corp., Miami, Fla.
Joseph A, Ray vis, also of Miami, is President.

writer

poses.

$12,000,000

110,000

(letter of notification) 50,000 shares of 30-cent

June

Sire

Philip Morris, Inc., New York

will expire on

filed

other

and

New

stock

(8 5-9)

shares of class A common stock
(par $1) of which 100,000 shares are to be offered pub¬
licly and 10,000 shares are to be offered for subscription,
by employees. Price — To be supplied by amendment.
Proceeds—To reduce bank loans and for working capital
12 filed

Sears Roebuck Acceptance Corp. (7/24)
July 9 filed $50,000,000 of debentures due July 15, 1982.

May 13 (letter of notification) 299,000 shares of common
stock (par 10 cents).
Price—$1 per share. Proceeds—
For oil drilling expenses.
Office—27 William St., New

$510 per unit,

June

(and may be declared
Regis, if not less than 80%
Statement effective June 21.

St.

option of

is deposited).

^Sanders Associates, Inc., Nashua, N. H.

July

per

National Tea Co.,

stock

Northwest

July 22, 1957, unless extended.

stock.

of the latter

deposited for exchange

effective
of the

gram,

being offered in exchange for common stock of Tolerton
& Warfield Co. of Sioux City. Iowa, on the basis of 7%
shares of National Tea for each Tolerton share. The offer
•

stock

Price—$28

convertible

48.720 shares

filed

(par $5)

850,000 shares of common stock

1 filed

Sareze, Inc., Miami, Fla.

$6.50)
stockholders

376,600 shares of common stock (par

Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For general funds of the company.
Office—207 "West
8th St., Coffeyville, Kan. Underwriter — G. F. Church
& Co., St. Louis, Mo.

May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—SI per share. Proceeds—To

April

& Light Co.

Power

Pacific

June 4 filed

—T.

Investors Corp. of New York

Co., Helena, Mont.

Regis Paper Co.

Peabody & Co., New York.

York, N. Y.

Mutual

St.

The offer will be declared effective if 95%

(7/24-25)

Natural Gas Co.

Pacific

price—At market.

Richmond, Va.

tional Bank & Trust

St. Regis stock for each share of Lumber company

•

Pancal Oil Corp.

Mutual

March

by holders of not less than 240,000 shares (80%) of the
outstanding Western stock. Exchange Agent—First Na¬

July 23.

New York.

Thursday, July 18, 1957

being offered in exchange for common stock of St. Paul
&
Tacoma Lumber Co. on the basis of 56% shares of

Inc.; Blyth

June 20,

•

& Co., Inc.; The First Boston Corp.
Bids—Expected to be received up to 8:30 a.m. (PDT) on
Co.

Colo.

refunding mort¬

and

reduce

notes

Colo.

(7 23)

of first

bonds, series BB, due June 1, 1989. Proceeds—To
bank loans. Underwriter—To be determined bv

gage

Monticello Associates, Inc.
Feb. 18 (letter

$60,000,000

filed

June

Electric Co.

Pacific Gas

Continued from page

Chronicle

(304)

Co.

Inc., all of New Yorfo

and
~

- «* -

Halsey, Stuart

Volume 186

Number 5656

The Commercial and Financial Chronicle

Tex am Oil Corp., San Antonio, Texas
May 29 filed 300,000 shares of common stock (par $1),
to be offered fog subscription by common stockholders
of record March 15, 1957 on a basis of two new shares
for each share

held; rights to expire on July 20. Price
supplied by amendment. Proceeds—To repay
indebtedness, for acquisition and exploration of oil and
gas leases, for drilling and completion of wells, and for
other corporate purposes. Underwriter—None.

•—To

Texas Glass

Manufacturing Corp., Houston, Tex.

May 28 filed 3,000,000 shares of common stock (par $1),
of which 2,700,000 shares are to be offered to public at
$2 per share. The remaining 300,000 shares are under
option to original stockholders at $1 per share. Proceeds
—For expansion and working capital.
Underwriter—T.
J. Campbell investment Co., Inc., Houston, Texas.
•

Titanic Oil Co.

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—
Wayne Jewell Co., Denver, Colo.
•

Tracerlab, Inc., Waltham, Mass.

June 19 filed 200,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To re¬
duce trade
and

and

other current

indebtedness of

company

its subsidiaries and for general corporate purposes.

Underwriter

Lee

Higginson Corp., Boston and New
Offering—Expected today (July 18).

York.

—

Tripac Engineering Corp.
(letter of notification) 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬
ment and proprietary development.
Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.
Feb. 27

•

Tung-Sol Electric Inc. (7/24)
July 3 filed 100,000 shares of cumulative preferred stock
(par $50), convertible prior to Aug. 1, 1967. Price—To
be supplied by amendment. Proceeds—To reduce shortterm

bank

loans

and

increase

working capital.

Uranium Corp.

of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par 10
cents). Price—To be supplied by amendment (expected
to be

share). Proceeds—For exploration

per

purposes.

Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President.

Western Hemisphere Petroleum Corp.
20 filed 400,000 shares of common stock

June

Co. Inc.; Kuhn, Loeb & Co., American Securities Corp.
and Wood, Struthers & Co. (jointly); White, Weld & Co.
and Shields & Co. (jointly); The First Boston Corp. and

(par 50

Byers (A.M.) Co.
May 7 stockholders approved

—Expected this week.
Woodland Oil

& Gas

Co., Inc., New York
May 28 filed 700,000 shares of common stock (par 10
cents), of which 600,000 shares are to be offered for
account of company and 100,000 shares for account of a
selling stockholder, Ralph J. Ursillo, General Manager
of the company.
Price—$1.50 per share. Proceeds—To
drill and complete oil wells on the company's Pennsyl¬
vania and Kentucky properties and for two "deep tests"
on
its Pennsylvania property, as well as for working
capital. Underwriter—Name to be supplied by amend¬
ment.

proposal to authorize

100,000 shares of cumulative preference
$100) and to increase the authorized out¬

stock

(par
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no specific
objectives involved. Control—Acquired by General Tire
& Rubber Co. in 1956. Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
Tire & Rubber Co. financing.
Carolina

Natural

Co.

Gas

July 2 it was reported company plans to issue and sell
$1,600,000 of first mortgage 6% bonds, $800,000 of 6%
subordinated sinking fund debentures due 1977 and 112,—
000 shares of common stock in units of $100 of bonds,
seven common

Instruments Laboratory,

announced company plans to issue and
probably in the fall, approximately $7,500,000 of sinking fund debentures. Proceeds—To finanee
construction program.
Underwriter—Probably Kidder,
Peabody & Co., New York.
1
sell

this

ment

Corp., owner of 31,500 shares or 15.8% of Airstock, propose to purchase $320,000 of the new
debentures.
Proceeds—Together with $4,000,000 to be
borne's

borrowed from institutional investors, for a

building and

April 9 it was reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—-To reduce bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc,; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
Central Louisiana Electric Co.,

April 8 it

was

Inc.

announced company plans to issue and

this

late

year $6,000,000 of first mortgage bonds.
Together with $4,500,000 of 4%% 12-year
convertible debentures placed privately, to be used to
repay bank loans and for construction program.
Un¬
derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about the middle of last year arranged the private

sell

Proceeds

—

placement of
gage bonds.

issue of $5,000,000 series G first mort¬

Industries,

Chesapeake
June

reported

was

Inc.

company

$10 of bonds will carry
of

stock.

common

warrant to purchase one share
— Van Alstyne,
Noel &

Underwriter

Co., New York.

^ Aircraft,

Chicago,
will

Chicago, 111.

received

by the

(7/18)

Pacific RR.

at Chicago, 111.,

company

July 18 for the purchase from it of
$3,000,000 equipment trust certificates due semi-annually
from Feb. 1, 1958 to Aug. 1, 1972, inclusive.
Probable
bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. &
(CDT)

up to noon

Hutzler.

(9/3)
plans to offer to its

was

reported company
record Aug. 27, 1957,

the

subscribing for additional common stock

privilege of
a l-for-10

Electric

Illuminating

Co.

reported company plans to issue and sell
mortgage bonds in the Summer of
Proceeds—To repay bank loans and for construc¬
was

July 17 it

announced

Co.

(10/29)

that company plans

issue
and sell $250,000,000 of (debentures to be dated Nov. 1,
1957

and

was

to mature

Nov.

1, 1983. Proceeds—For im¬
of system. Underwriter—To
competitive bidding. Probable bidders:
Morgan Stanley & Co.; The First Boston Corp. and Halsey, Stuart & Co. Inc. (jointly).
Bids—Expected to be

provement

and

expansion

be determined by

opened

Oct. 29.-'

18, it was reported company plans to sell not leso
$20,000,000 of first mortgage bonds, possibly thio

Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Conxi.; and Estabrook & Co., Boston, Mass.
Consolidated

Edison

(10/22)

Co.

New

Inc.

York,

Charles B. Delafield, Financial Vice-President, on July 9
announced that the company has tentatively decided to
issue and sell $50,000,000 of first and

refunding mortgage

(probably with a 30-year maturity). This may
be increased to $60,000,000, depending upon market con¬
ditions.
Proceeds—From this issue and bank loans, to
pay

part of the cost of the company's 1957 construction
which is expected to total about $146,000,000.
competitive bidding.

program

Underwriter—To be determined by
bidders:

Probable

Halsey,

Stuart

Co.

Inc.;

Morgan

Stanley & Co.; The First Boston Corp. Bids—Tentatively
scheduled to be received up to 11 a.m. (EDT) on Oct. 22.
Consolidated Natural Gas Co.

(9/17)

announced company plans to issue and sell
$25,000,000 25-year debentures. Underwriter—To be de¬
termined by
competitive bidding. . Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley
& Co. and the First Boston Corp. (jointly.
Bids—Ex¬
pected to be received up to 11:30 a.m. (EDT) on Sept. 17.
May 9 it

•

was

Consumer Power Co.

(10/21)

announced company plans to, issue and sell
$35,000,000 of first mortgage bonds due 1987. Proceeds
—To repay bank loans and for construction program.
Underwriter—To be determined by competitive bidding.
July 9 it

was

White, Weld
(jointly); Morgan Stanley &
Co.; The First Boston Corp. and Harriman Ripley & Co,
Inc. (jointly). Bids—Expected to be received up to 11:39
a.m.
(EDT) on Oct. 21.
Shields

and

Co.

•

Consumers

Co.

Power Co.

(10/16)

announced that the company plans, in addi¬
financing, to offer to its common stock¬
holders the right to subscribe for $35,156,760 convertible
debentures maturing not earlier than Sept. 1, 1972, on
was

the

basis

$100

debentures

for

each

shares of.

Proceeds—For construction program.
Un¬
derwriter—To be determined by competitive bidding.
held.

Probable bidders: Halsey,
&

Co.

Shields

and

Stuart & Co. Inc.; White, Weld
(jointly); Morgan Stanley &s

Co.; The First Boston Corp. and Harriman Ripley & Co.
Inc. (jointly); Ladenburg, Thalman & Co. Bids—Expect¬
ed to be received up to noon (EDT) on Oct. 16.

July 15 it was reported that company is planning some
equity financing. Underwriter—Probably Blunt Ellis 8&
Simmons, Chicago, 111.
•

Edison

Detroit

Co.

announced Michigan P. U. Commission
has authorized issue and sale of $70,000,000 general and
—To

bank

repay

Underwriter

—

loans

and

Proceeds
construction program.
by competitive bidding,

for

determined

in August.

Weld

American Telephone & Telegraph

than

petitive

Cleveland, Ohio.

Underwriters—Emch &
both of Milwaukee, Wis.

Feb.

tion program.

1957.

share to pay part of cost of purchase of an operating car¬
rier truck line. Underwriter—Fulton, Reid & Co., Inc.,

(par $20).

Connecticut Light & Power Co.

bidders may be The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Coffin & Burr, Inc.>
and Spencer Trask & Co. (jointly).
Offering—Expected

Underwriter—To be determined by com¬
Probable bidders: Halsey, Stuart &
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc.. and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.; White,

Co. and The Marshall Co.,

Expected to

—

refunding mortgage bonds, series P, due 1987.

Cleveland

Co. Inc.; The First Boston

ferred stock series A

Bids

proximately 30% of the outstanding common stock.

private sale of 425,000 shares of

Aluminum Specialty Co.
March 18 it was announced company plans to issue and
sell 15,000 shares of $1.20 cumulative convertible pre¬

Co.

June 27 company

$25,000,000 of first

stock at $4 per

Boston Corp.; Glore, Forgan &
on Oct. 8.

be received

rights to expire on Oct. 3, 1957. Underwriter—
None.
American Telephone & Telegraph Co. owns ap¬
basis;

Freight, Incorporated, Akron, O.
was announced company plans to offer public¬
ly $2,250,000 of 15-year 6% debentures (with common
stock warrants).
Proceeds—Together with funds from
common

bonds, to be determined by competitive bididng.
Stuart & Co. Inc.; The First-

Probably bidders: Halsey,

it Cook Electric Co.

Nov. 12 it

States

June 21 it

For any

stock

Island &

Rock

stockholders

Land-Air, Inc. and Air Carrier Service Corp. into Air¬
craft, Inc., a new company. Underwriter—Cruttenden,

All

about

Bros. & Hutzler.

Bids

(10/8)

tion to the bond

reported company plans to issue and sell
$5,000,000 of equipment trust certifi¬
Probable bidders: Halsey, Stuart & Co. Inc.; Salo¬

cates.
mon

Co.

plans to offer $25,000,009
$50jOOO,OOK> of new securities (kind not yet deter¬
mined). Proceeds — For construction program. Under¬
writer—(1) For any preferred stock, may be The First
Boston Corp. and Glore, Forgan & Co. (jointly).
(2)

July 9 it

was

August

July

Inc.

July 9 it was reported company plans to issue and sell
up to $12,500,000 common stock, following spin-off by
California
Eastern
Aviation, Inc. of its subsidiaries,

Podesta & Co.,

Edison

Probable bidders: Halsey, Stuart & Co. Inc.;

plans early registra¬

$3,500,000 of 5lk% collateral trust sinking fund
bonds due 1972 and 350,000 shares of common stock. Each
tion

Commonwealth

•

June 25 company stated that it

bonds

Illinois Public Service Co.

^ Cincinnati & Suburban Telephone Co.

expansion program.

it was reported this company plans to raise
$64,000,000 to finance construction on a proposed
refinery and for other corporate purposes. The major
portion will consist of first mortgage bonds which would
be placed privately, and the remainder will include de¬
bentures and common stock (attached or in units). Un¬
derwriter—Lehman Brothers, New York. Offering—Ex¬
pected in August.
10

about

was

Central

was

Commerce Oil Refining Co.
June

year,

Inc.

May 16 it was announced company plans to issue and sell
$2,000,000 of 15-year 5V4% unsecured subordinated con¬
vertible
debentures.
American Research
& Develop¬

reported that company plans to issue andt
$8,000,000 of cumulative preferred stock.
Underwriter—Dillon, Read & Co. Inc., New York.
L

Hudson Gas & Electric Corp.

Central

April 22 it

July 15 it

Prospective Offerings

Columbus & Southern Ohio Electric Co.

Feb. 21 it

sell in the Fall

shares.

ic Chesapeake & Ohio Ry.

Airborne

Halsey, Stuart & Co. Inc.; Morgan Stanl^f
Co.; Merrill Lynch, Pierce, Fenner & Beane audi
White, Weld & Co. (jointly). Bids—Expected to be re¬
ceived on Oct. 3. ;
r"1 "4
" '■
&

Price—$164 per
unit. Proceeds—For construction program. Underwriters
—Cruttenden, Podesta & Co., Chicago, 111.; and Odess,
Martin & Herzberg, Inc., Birmingham, Ala.
Offering—
Expected in August, 1957, with registration about the
middle of July.

$50 of notes and

—For oil

exploration and development in Canada, Cuba,
Haiti, Honduras and other countries in the Western
Hemisphere, and barite exploration in Columbia. Office
—Tulsa, Okla. Underwriters—Sanders & Co. and Rauscher. Pierce & Co., Inc., both of Dallas, Tex. Offering

class

new

able bidders:

Co.

(jointly); Eastman Dillon, Union Securi¬
Smith, Barney & Co. (jointly); Lee Hig¬
ginson Corp.; Blyth & Co., Inc.

Price—To be supplied by amendment. Proceeds

cents).

ties & Co. and

Un¬

derwriter—Harriman Ripley & Co. Inc., New York.
•

Atlantic City Electric Co.
April 9, Bayard L. England, President, amiounced that
later this year the company will probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
struction program. Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey, Stuart &

Drexel

(305)

bidding.

Co.

Coastal

July 1 it

Transmission

was

Corp.

reported the company plans to offer pub¬

licly about 191,000 units of securities for about $20,000,000 (each unit expected to consist of a $25 debenture or
$35

note and five shares of $1 par common
Proceeds—Together with other funds, for con¬

interim

stock).

Underwriters—Lehman Brothers and
Co., both of New York.

struction program.
Allen &

Columbia Gas System,
June

and

Inc.

(10/3)

6, company announced that it plans the issuance
of $25,000,000 debentures later in 1957.
Pro¬

sale

construction program, which
is expected to cost approximately $84,000,000.
Under¬
writer—To be determined by competitive bidding. Prob¬

ceeds—To help finance 1957

probable

Duke

Power

Co.

(9/10)

reported company plans to issue and seR
$50,000,000 of first refunding mortgage bonds. Proceeds
—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬
April 22 it

was

Halsey, Stuart & Co. Inc.; The First Bos¬
Morgan Stanley & Co.; Stone & Webster
Securities Corp.
Bids—Tentatively scheduled to be re¬
ceived on Sept. 10.
able
ton

bidders:

Corp.;

Eastern

Gas

& Fuel Associates

additional

April 3 it was announced company may need

capital of between $25,000,000 and $35,000,000

during tho

Underwriter—For any bonds to be de¬
competitive bidding. Probable bidders;

next two years.

termined

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White,
& Co., and Kidder, Peabody & Co. (jointly).

Continued

Weld

page

The Commercial and Financial Chronic'e

(306)

Continued from page

Indiana

—

Electric

Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
Employers Group Associates
July 1 it was announced company plans to file a regis¬
tration statement with the SEC covering the proposed
issuance

sale

and

capital stock
holders

the

shares held.

88,761 additional shares of
for subscription by stock¬

offered

basis

new

one

for

each

four

and general corporate pur¬
poses.
Underwriter—Morgan Stanley & Co., New York.
Offering—Expected in late August or early September.
First National City Bank of New York
this bank offered its stockholders the right to
subscribe for 2,000,000 additional shares of capital stock
June 25

the basis of

held

one

share for each five

new

June

24, 1957; rights to expire on
share. Proceeds—To increase
Underwriter — The First Boston

July 22. Price—$60
capital and surplus.

per

Corp., New York.
General Telephone Co. of California
July 10 it was announced that the company has been
granted authority by the California P. U. Commission to
issue and sell 500,000 shares of 5% cumulative preferred
stock (par $20). Proceeds — For construction program.

Underwriters—Paine, Webber, Jackson & Curtis, Boston,
Mass.; and Mitchum, Jones & Templeton, Los Angeles,
Calif.
General Tire & Rubber Co.

May 10 it

reported that this company is considering

was

issue of

convertible

subordinated debentures, prob¬
ably around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For
working capital. Underwriter—Kidder, Peabody & Co.,
New York.
Goodman

June 21

Manufacturing Co., Chicago, III.
announced

was

plans to issue and

company

sell

150,000 shares of capital stock (par $16.66%), fol¬
lowing approval on Aug. 5 of 3-for-l split up of present
$50 par stock. Proceeds—For general corporate purposes.
Gulf Interstate Gas

May 3 it

Co.

announced

was

plans to issue

company

some

additional first mortgage bonds, the amount of which has
not yet

been determined.

Proceeds

—

March
sell

reported

plans to

company

issue

and

ceeds—To

repay bank loans and for construction pro¬
Underwriter—To be determined by competitive

bidding.

Probable

bidders: Halsey, Stuart & Co. Inc.;
Pierce, Fenner and Beane and White,
Weld & Co. (jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co.
(jointly); Kuhn,
Merrill

Lynch,

Loeb & Co. and A. C.
Allyn & Co. Inc.
& Webster Securities

(jointly); Stone
Corp.; Lee Higginson Corp.

Gulf States Utilities Co.

April 8 it

was

issue and sell
—To
be

reported

finance
Stone

company

construction

tentatively plans to

preferred stock this

some

determined

ders:

Proceeds

Underwriter—To
bidding. Probable bid¬

program.

competitive

Webster

year.

Securities

Corp.; Lehman Bro¬
thers and Equitable Securities
Corp. (jointly); Lee Hig¬
ginson Corp. and Carl M. Loeb, Rhoades & Co.
(jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
Hanna Steel Co.,
Birmingham, Ala.

April 8 it

was

common

stock.

Price—$5 per
& Co., Chi¬
cago, 111.; and Odess, Martin & Herzberg, Inc.,
Birming¬
ham, Ala. Offering—Expected in June.

Underwriters—Cruttenden, Podesta

Hathaway
June 24 it
to

its

(C.

was

F.)

Co., Waterville, Me.
company plans soon to offer

announced

stockholders

common

stock.

some

Underwriter—Probably H.

additional

common

M. Payson & Co., Port¬

land, Me.
13

Lighting & Power Co.
was

15.

Indianapolis Power & Light Co.

(8/8)

Nov.

21, 1956 it was announced company plans to issue
and sell 60,000 shares of cumulative preferred stock (par

Proceeds

$100).

—

bank

repay

loans

and

for

new

Underwriter—Lehman Brothers, Goldman,

construction.
Sachs & Co.

The First Boston

and

Corp. Registration—

Expected today (July 18).

April 2 it was announced company plans to issue ano
$5,000,000 of first mortgage bonds later this year
Proceeds
To repay bank loans and for construction
—

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.

program.

Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
Brothers, and Bear, Stearns & Co. (jointly) Equitable
Securities Corp. and Salomon Bros. & Hutzler (jointly),
The First Boston Corp.; Dean Witter & Co.

Eugene II. Walte, Jr., announced companj
plans in the near future to sell an issue of convertible
debentures. Proceeds—For expansion program.
was announced company plans to sell latei
$40,000,000 of nst mortgage bonds, series J
Proceeds—To refund $12,000,000 of series C bonds due

April 16 it

reported

year

Jan. 1, 1958 and for
—To be determined

construction program. Underwrite!
by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First Bostor,
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
Louisville

Gas

Eiectric

Co.

Louisville

Nashville

RR.

expected to be received by the company some

are

company

may

offer

late

this

approximately $25,000,000 first mortgage bonds, but
exact amount,
timing, etc. has not yet been determined.
Underwriter—To be determined by competitive
bidding.
Halsey, Stuart & Co. Inc.; Equitable
Corp.; Lehman Brothers, Eastman Dillon,
Union Securities & Co. and Salomon
Bros. & Hutzler

$20,-

ding. Probable bidders: Halsey, Stuart & Co. Inc.; Kudu,
Loeb

Salomon

Company;

Bros.

& Hutzler; Bast man

Dillon, Union Securities & Co., and Wood, Strutners &
Co. (jointly); Lehman Brothers; The First Boston Corp.;
Equitable Securities Corp.; Merrill Lynch, Pierce, Fen¬
ner & Beane; Kidder, Peabody & Co., and White, Weld
&
Co.
(jointly).
Offering—Expected in first half of
1957. •
,•/'
New Jersey

May

Bell Telephone Co.

(9 111

announced company plans to issue and sell

i it was

$30,000,000 of debentures. Proceeds—Together with pro¬
ceeds from sale of 900,000 shares of common stock (par
parent, American Telephone & Telegraph

—To

Co.,
expansion program. Underwriter
by competitive bidding. Probable

determined

bidders:

Halsey, btuari & cu.

Kuwu^

inc.;

^eu

v^o.,

Shields & Co.; White, Weld &
Co.; The First Boston Corp. Bids—Tentatively expected
to be received on Sept. 11.
v ; /
^
Morgan Stanley & Co.;

New Jersey Power & Light Co.
Sept. 12, 1956, it was announced company plans to issuef
and sell $5,000,000 of first mortgage bonds. Underwriter—
To
be
determined
by competitive bidding.
Probable

Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
and Salomon Bros. & Hutzler (jointly);
Union Securities & Co. and White, Weld
(jointly); Equitable Securities Corp4 .The Fnsl
Corp.; Merrill Lynch. Pierce, Fenner
Beane.

Brothers

man

Eastman Dillon,
&

Co.

Niagara Mohawk Power Corp.
22 it was reported company tentatively plans to
issue and sell this fall about-$40,000,000 of bonds.
Un*
derwriter—To be determined by competitive bidding.
April

Probable

bidders:

Halsey, Stuart & Co. Inc.; The First

Boston Corp.;

Morgan Stanley & Co.; Kuhn, Loeb & Co.
and Eastman Dillon, Union Securities & Co. (jointly). ;
•

Norfolk

Western

(7/31)

Ry.

expected to be received by the company up to
(EDT) on July 31 for the purchase from it of $4,-

are

noon

320,000 equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
•

Norfolk & Western Ry.

Bids

(EDT)

noon

(9 18)

expected to be received by the company up to

are

Sept.

for

the

purchase from

$4,260,000 equipment trust certificates.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzier.
Illinois

Nortnern

Co.

Gas

(9/24)

announced that it is planning to
$8,000,000 and 810,000,000 early this fall.
No decision has been made as to the i'orpi of the pro¬
posed financing, but no consideration is being given to

July

raise

between

this

company

it of $14,400,000
equipment trust certificates. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

sale of

if Mahoning National Bank of Youngstown
July 16 it was announced Bank is offering to its stock¬
holders the right to subscribe for 66,000 additional shares
of capital stock (par $10) on the basis of two new shares

Probable bidders: Halsey, Stuart & Co. Inc..;
The First Boston Corp.; Glore, Forgan & Co.; Blyth &
Co., Inc. Bids—Expected to be received on Sept. 24.
'

for each five shares held. Price—$24 per share. Proceeds
increase capital and surplus.
Underwriter — The

—To

Ohio Company,

Columbus, Ohio.

Mangel Stores Corp.
June 19 it was reported early registration statement is
expected of an issue of $3,000,000 of convertible de¬
bentures
New
•

due

Manufacturers

July

Underwriter—Lee

1972.

Higginson Corp..

York.

National

stockholders

Bank

Detroit

given the privilege of sub¬
scribing for 156,600 additional shares of capital stock
(par $10) on the basis of one new share for each seven
shares held as of July 9; rights to expire on July 26.
Price—$35 per share. Proceeds—To increase capital and
surplus. Underwriters—Blyth & Co., Inc.: First of Mich¬
igan Corp.; and Watling, Lerchen & Co.
Middle South

May 8 it
ing of

was

new

were

Utilities, Inc.

announced company may consider an offer¬
stock within the next year or so.

common

stock

Power Co.

Ohio

shares of $100 par value preferred stock. Pro¬
repay bank
loans.
Underwriter—To be de¬
termined
by competitive bidding.
Probable bidders:
70,000

(1) For bonds—Halsey, Stuart & Co. Inc.: The First Bos¬
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
curities & Co. and Salomon Bros. & Hutzler (jointly).
ton

(2) For preferred stock—Eastman Dillon, Union Securi¬
(jointly): Harri¬

ties & Co. and Salomon Bros. & Hutzler

Ripley & Co. Inc. and Stone & Webster Securities

man

Corp. (jointly); The First Boston Corp.; Blyth & Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Bids—Ex¬
pected to be received up to 11 a.m. (EST) on Nov. 19.
Pacific Telephone

stockholders

the

right

196,851 additional shares of
warrants to

basis
each

purchase

one

seven

new

common stock (par $1), plus
additional 196,581 shares, on the

common

shares presently held.

and

one

warrant

for

The holders of record

& Telegraph Co.—_

May 24 it was announced company plans to offer to its
stockholders the right to subscribe for 1,822,523 addi¬
tional shares

common

stock on the basis of one new

share for each six.shares of

common

stock and/or pre¬

Price—At par ($100 per share).

Pro¬

advances from parent. Underwriter—
American
Telephone & Telegraph Co. owns

ceeds—To

repay

of the voting stock of Pacific T. & T. Co.

89.6%

ing—Expected some time in August.

Telephone & Telegraph

Pacific

plans to offer its
subscribe for about

company

(11/19)

ceeds—To

if Molybdenum Corp. of America
announced

be determined by competitive

May 15 it was reported that this company now plans to
issue and sell $28,000,000 of first mortgage bonds and

None.

was

com¬

Under?-

bidding.

three-year period 1957, 1958 and 1959. UnderwriterPrevious stock offering was to stockholders, without
underwriting, with oversubscription privileges.

securities convertible into

writer—For any bonds, to

ferred stock held.

Proceeds—For construction program.

stock.

mon

Proceeds—About $19,000,000, for investment in common
stocks of the System operating companies during the

common

Fall

to be known as MarrimacK-Essex Eiet\rxc to.
Underwriter—May be determined by competitive bid¬

Bids

(9/4)

May 14 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and for construction program. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. anc
American Securities Corp. (jointly); Kidder, Peabody &
Co. and Goldman, Sachs & Co. (jointly); Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., Inc
(jointly); The First Boston Corp.; Eastman Dillon, Unior.
Securities & Co. and White, Weld & Co. (jointly). Bid*
—Tentatively scheduled to be received on Sept. 4.
Bids

This would be followed by

company.

pany,

Boston

Long Island Lighting Co.
this

Thursday, Z ily 13, 1957

bidders:

Lake Sulphur Co.

Jefferson

will be used to pay for

sell

tive

one

000,00U first mortgage bond issue by tne resuhcmi com¬

$100)

Southern Utilities Co.

Iowa

July

Houston
Feb.

•

bidding.

Oct.

reported company plans to issue and sell

120,000 shares of class A

share.

Underwriter—To be determined by competi¬
Probable bidders: Halsey, Stuart & Co.
Inc.; Iiarriman Ripley & Co. Inc.; Ine First Boston
Corp.; Eastman Dillon, Union Securities & Co. BiasTentatively expected to be received up to 11 a.m. (EbT)
tive

time in the Fall for the purchase from

$16,000,000 first mortgage bonds in November. Pro¬

gram.

Proceeds

construction

Utilities Co.

was

lor

and

loans

baxiK.

program.

For construction

Underwriters—Carl M. Loeb, Rhoades
and Merrill Lynch, Pierce, Fenner & Beane,
program.

Gulf States

into

Dec. 27, 1956,

•

(10 15)

pxans to isoue and sell

company

of first mortgage oonua due 19o7.

reduction

—For

Price—To be supplied by amendment. Pro¬

ceeds—For working capital

(par $20)

was reported

$20^000,000

Eastern Utilities Associates

April 15 it was announced company proposes to issue
and sell $3,750,000 of 25-year collateral trust bonds
Proceeds
For advances to Blackstone Valley Gas &

Michigan Electric Co.

May 20 it

Co.

Offer¬
1

(8/20)

May 24 it was announced company plans to issue and
sell $90,000,000 of new 23-year debentures due
1980.
Proceeds—To repay advances from parent and for im¬
provements and additions to property. Underwriter—To
determined by competitive bidding.
Probable bid¬

ders:

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

Probable bidders:

date

Bids—Expected to be received on Aug. 20.

Securities

—Expected in the latter part of July.

(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jomtly); Kidder, Peabody & Co.
Idaho

Power Co.

May 16 it
around

Fall

was reported
company plans to issue and sell
200,000 to 225,000 shares of common stock in the

addition

between

$10,000,000 to $15,000,000
Underwriter—To be
determined by competitive
bidding, probable bidders:
(1) For bonds—Halsey, Stuart & Co.
Inc.; Salomon Bros.
first mortgage

bonds after Nov. 1.

Hutzler

and Eastman
Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston
Corp. (jointly); Kidder, Peabody &
Co. and White, Weld & Co.
(jointly); Equitable Securi¬
ties Corp.
(2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres &
Co. (jointly).

will be the fifth day following the effective date
registration with the SEC. Proceeds—For expansion

program.

Office—Grant Bldg., Pittsburgh, Pa.

Montana

May 20 it
For

was

reported company may issue and sell in
$20,000,000 of debt securities. Proceeds—

construction

program and
to reduce bank loans.
Underwriter—To be determined by competitive bidding.

Probable bidders: Halsey, Stuart & Co.
Inc.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Kid¬
der, Peabody & Co.; Smith, Barney & Co., and Blyth &
Co., Inc. (jointly); Merrill Lynch, Pierce, Fenner &

Beane

New

and

Stone

England

Webster

Electric

Co.

Sept. 12, 1956 it was announced company plans to issue

Power Co.

the fall about

Electric

Pennsylvania

Registration

Securities

Corp.

(jointly).

System

$6,000,000 of first mortgage bonds. Underwriter
determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities &
Co. and White, Weld & Co. (jointly): Equitable Securi¬

and sell
—To

ties

Corp.; The First Boston Corp.; Harriman Ripley

Co.

Inc.;

Kuhn; Loeb

Permian

May

Northern
of

Haverhill Electric Co. and

of $9,300,000

Ainesbury Electric Light Co.,

new

Line

Gas

Co.,

Co.

company,
may

subsidiary

issue about $25,300,000

securities, in the following form: $15,000,000 of

mortgage
600.000

Pipe

Co.

announced

Natural

May 23 it was announced SEC has approved the merger
following subsidiaries: Essex County Electric
Co.; Lowell Electric Light Corp.; Lawrence Electric Co.;
of the five

Basin
was

bonds,

$3,700,000 of preferred stock and $6,stock. Proceeds—To repay advances

common

from parent, and the remaining

$16,000,000

Number 5656

Volume

186

for

construction.

new

Underwriter

Eastman

Glore, Forgan &

—

struction

Southern Pacific Co.

•

Pittsburgh & Lake Erie RR.

Bids will -be received

May 16 it

bers:

For

& Co.

ubiic

Indiana, Inc.

first

$25,000,000

(about

bonds

mortgage

be issued and sold by the company
during the year 1957. Proceeds—To repay bank loans

Bids

Morgan Stanley & Co.
received

Oct.

Probable bidders: Halsey, Stuart & Co.
Inc.; Blyth & Co., Inc.; The First Boston Corp.; Harriman Ripley & Co. Inc.; Glore, Forgan & Co.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler and Eastman Dillon,
Union Securities & Co. (jointly).

July 6 it was announced stockholders will vote Aug. 9
on approving a new issue of $20,000,000 convertible sub¬
ordinated debentures, which are to be offered for sub¬

•

petitive bidding.

Purex

Diego Gas & Electric Co.

San

Loeb

pany will probably raise about $7,500,000 late this fall
through the sale of preferred stock. Underwriter—Blyth
& Co., Inc., San Francisco, Calif.

Proceeds

$6,700,000

about

company

Siegler Corp.
25

announced

was

company

plans 'to issue and

October of this year

maximum of

200,000 additional shares of common stock. Underwriter
—William R; Staats & Co., Los AngeJes, Calif.
Electric & Gas Co.

South Carolina

Jan. 14 it

reported company plans to issue and sell

was

$10,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:

plans to issue and

$15,000,000 of first mortgage bonds due 1987.
To repay bank loans and for construction

Halsey, Stuart & Co. Inc.; The1 First Boston Corp. and
LoUman
Brothers
(jointly); Kidder, Peabody & Co.;

Continued

March 12 it
to

the

for

country, that we, as a peo¬

saving again at
that rate,
a higher rate, if
we
are
going to maintain eco¬
nomic activity at peak levels and,
at the same time, control the in¬
flationary forces which threaten
pur future.
must

start
or at

appropriations this year will
to promote the savings
function.
At the same time, in¬

ways—as

television set?

;

Output

successful

and

expansion

economy—and to

our

higher

been

standards
our

achieve
real

and

output
has

This

our

higher and
living—: has

would
and

the

and

wages.

possible at all

point, but they are com¬

finance

that

increasing

were

pletely valid in supporting it. If
this nation ever loses its ability

real

if it

produce it by hand labor."
These examples may exagger¬

ability

set

1,500 people seven
half years and cost $1121//2

the

build

capital investment
to our prog¬

will have lost the game
future.
And our ability

to finance

the

necessary

depends on our ability
of savings.

reserves

and

national

our

fort,

and

per

manhour of

have

achieved

ef¬
this

largely through, capital
invest¬
in science, research and en¬
gineering, in new and better ma¬
chines, and in new and better

ment

ways

This has

using

those

been the

machines.

great source of

strength and progress in our high¬
ly technological and capitalistic
society. The freedom to invest, to

experiment, to take the risks that
are

involved

progress

and

Banks

de¬

The

banks

the

Unjjted
States
have
taken
full
recognition of this, need and are
spending more each year in the
promotion of the savings function,
as well as in the development of
plans and services which make it
easier
for
individuals
to
save
regularly and systematically.
Ten years ago,

commercial bank

advertising appropriations totaled

Summary
I

hazarded

have

few

guesses

Our

Reporter's Report
$50

Acceptance Corp. will market
million of debentures.,
,

continue

banking system.

our

know, there are other
important forms of saving—the
purchase
of stocks, bonds, and
other forms
of investment—the
As

you

savings and

buying

associations

loan

—

paying back

owe—and so on. And I
am
sure you have noted that the
United States Treasury, the sav¬
what you

ings and

associations, credit

loan

unions, insurance companies, and
investment bankers and brokers
all

making intensive efforts to

are

savings dollars.
is
a
total
campaign

attract
This

inflation within control,

plateaus

accom¬

believe

some

war

believe

catastrophe.
that

direction,

faith in

have

our

and because I
system and its

cause

and

ness

vigor

the

continue

fight against any force—economic

political—that

would

destroy

Unfortunately,

about
to

the long-range future

happen

omist—or

what

the

field

the

tomorrow.

{he
of

basis

briefly—is
sunspot

weather
of

his

operating results stood the issue in
stead as a favorable back¬

good

drop.

Stock Exchanges.

predictions.
examination

The

attraction.

Herculean Task

(Special to The Financial Chronicle)

connected

become

has

Finch

Bennett-Gladstone-Manning

with

vard.
with

Calif. —John

ANGELES,

LOS

Mr.

Finch

Jonathan

Boule¬

Beverly

8417
&

Co.

ARLINGTON,
Wagner,
curities
1465

Va.—George

Jr., is engaging
business

from

in a se¬

offices

what

the
its

WASHINGTON, D. C.
W.

McGinWs

curities

does

from

offices

Street, N. W.

in this

NEW
R.

LENOX,

Miller

111.

—

Ch'auncey

engaging in a secu¬

rities business from

offices at 132

good

West Fourth Avenue.

of anticipating

developments.

funding.

one

near-term

market has done a

job

It's almost a

tions

Government

But some observers seem

the Treasury

that

corporate investment

to feel that the

these

billion

direction could have

certainty now that

will not attempt any¬

thing in the way

Office

Miller Opens

$16

next month.

material bearing on the

Robert pretty

is conducting a se¬

business

927 Fifteenth

—

almost

Naturally what the

market.

R. W. McGinniss Opens

in¬

wait and see
Treasury plans to do
impending task of re¬

creasingly inclined to

future of the

Twenty-Eighth Street.

institutional

others, will be

and

investors

debts maturing

Opens

underwriting

fraternity, along with

financing

G. W. Wagner

the

From here on

about

formerly

was

is the

Gladstone

Joins Bennett,

company

largest producer.

nation's eighth

some¬

;

Again, the sinking fund proviCalif.—Lillian sions which make possible the re¬
F. Taylor has been added to the funding of $3 million of the bonds
staff
of Arthur B. Hogan,
Inc., annually starting in 1960, with re¬
6705 Sunset Boulevard, members demption of $1.5 million a year
of the Pacific Coast and Midwest mandatory,
probably proved an

econ¬

expert

industry in growth

steel

(Special to The Financial Chronicle)

banker who talks like

however

one,

than

precise about what is going

of
and.

Presumably the recent record

HOLLYWOOD,

always

completely confident

easier to

welcome.
the

existing levels.

will

untapped potential, and be¬
I have faith in our willing¬

still

scarce,

rates will likely

Hogari Adds to Staff

signs point

because most economic

remain

Company,

barring a
other gigantic

will,

relatively

and bank lending

to continue to move to

are

higher

total

hope,

plishment for our economy.
I

—I

must succeed, if we are

keep

ever

SupportlSavings Drive

commercial

from page 8

public relations programs aimed
at studying the banking and sav¬
ings' habits and motivations of
Americans, and to develop new
and improved .techniques of in¬
creasing the savings activity with¬

us.

productivity

Continued

educated ones. Despite
Steel Offering Taken
the soft spots, over-all
business
With a group of 103 firms han¬
activity this year should continue
at
a
satisfactory pace, and any dling the distribution of the issue,
decline should be very moderate. Inland Steel Co.'s $50 million of
first
mortgage,
4%%
Although there has been a de¬ 30-year,
crease in the rate of demand for
bonds, brought out yesterday at
bank credit, money will probably 100 and interest, received a good

which

television

single

banks

banking associations are engaged
in intensive market research and

Dr. Bru-

require

million,

increases

demanded

about the weather tomorrow. "

dividual

Inc.

but he won't even hazard a guess

used

"YTour

ress,

continuing

substantial

are

netli's hand labor figures:

ate

The vital key to the continuing

Here

velopment,

•

Real

sunspots, he can predict a hot
cool or a wet or dry summer,

these

Business

Tight Money Picture

capital for business and personal
use
have recently tended to run

ple,

Under¬

shares of common stock.

Wisconsin Southern Gas Co.,

million.
In 1957, they will
$102 million—an increase of
112%.
More than one-third of

demands

our

July 8 it was reported company plans to offer up to
$300,000 of additional common stock to its stockholders.
Underwriter—The Milwaukee Co., Milwaukee, Wis.

total

has been — in many
important a freedom as
any other we enjoy.
As a momentary digression, I
far
ahead
of
our
accumulated
think one might be interested in
savings.
t
Liquid reserves in the hands of- some figures developed recently
by a distinguished electrical en¬
the American public now amount
to $242 billion.
Americans saved gineer, Dr. Cledo Brunetti, In an
more
dollars last
year
than in article on automation, published
last
May
by the University of
any year since World War II. To¬
day our personal savings in • the Minnesota, Dr. Brunetti said—and
I quote:
aggregate are running better than
"Is automation necessary? Con¬
6% of net disposable income.
On the surface, that seems to be sider the example of building a
Ford automobile by
hand. With
a
good record. But the fact is—
no power machinery
except hand
it's not good enough.
drills, saws and wrenches, we es¬
Two years, ago. we were saving
timate it would lake 5,000 people
fewer dollars, but we were saving
five years and cost $250 million
8% of net disposable income.
1
to produce one car."
believe, along with many others
How much did you pay for your
in our
because

tember; and of stock in August.

also announced company plans to offei

was

$48

Some Obseivations

10 basis):

Fenner

(9/24)

Light Co.

public 400,000

from page 7

And the

stock (first to stockholders on a 1-forThe First Boston Corp., Merrill Lynch, Pierce,
Beane, Robert W. Baird & Co. and William
Blair & Co. (jointly).
Registration—Of bonds in Sep¬

For any common

ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp
(jointly); Kidder, Peabody & Co. Bids — Tentatively
scheduled to be received on Sept. 24.
&

stock.

Peabody & Co.; The First Boston Corp.; Merrill Lynch,
Pierce, Fenner & Beane; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Dean
Witter & Co.; Lehman Brothers; White, Weld & Co.
(2)

—

Power

common

and to repay bank loans. Underwriters—(1)
bonds, to be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kidder,

program

Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co
Inc.; The First Boston Corp. and Blyth & Co., Inc
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬

Utah

$7,000,000 of first mortgage bonds

For

program.

sell in September or

plans to issue and
and about
Proceeds —For construction

sell about

new

(9/24)

Light Co.

March 12 it was announced
sell about

Co.

Service

$5,000,000

Power

provide

Utah

Public

Wisconsin

May 29 it was announced company

June

Weld

Hutzler; Eastman Dillon, Union Secu¬

Co.; Stone & Webster Securities Corp.; White,
Co. Bids—Expected to be received on Dec. 3.

rities &

Corp. of California

securities
working capital.

ing

April 23, E. D. Sherwin, President, announced that com¬

may

Salomon Bros. &

May 21 it was announced company plans a public offer¬

Fiancisco and New York.

of first mortgage bonds. Probable bidders for
include: Halsey, Stuart & Co. Inc.; Kuhn,
& Co. and American Securities Corp. (jointly);

bonds

Co., Cleveland, O.
Transocean

Valley
certain
Kidder,

000,000

13; rights to expire on or about Aug. 29. Proceeds—For

Co.,

Virginia Electric & Power Co. (12/3j)
March 8 it was announced company plans to sell $20,-

working capital and general corporate purposes. Under¬
writers—Smith, Barney & Co., New York, and McDonald

April 30 it was announced that proceeds of at least $1,200,000 are to be received by the company prior to July
1, 1957 from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,
San

(8/13)

scription by common stockholders of record about Aug.

(Calif.)

Corp., Ltd.

Thompson Products, Inc.

latter

Gas

(amounting to $25,000,000 at Dec. 31, 1956) and for new
Underwriter—To be determined by com¬

construction.

paragraph.

the $2,500,000 of common stock of
it is to receive as part payment of
Blackstone properties. Dealer-Manager—Maybe
Peabody & Co., New York.
/

the

Tentatively expected to

—

sale the first three

dispose by negotiated

securities mentioned in this

April 15 it was also announced Blackstone plans to offer
to its common stockholders (other than Eastern Utilities
Associates its parent) and to common stockholders of

—

will

$30,000,000)

was

proposes

Incorporated, New York.

Telephone Co. (10/1)
May 24 directors approved the issuance of $100,000,000
new
debentures.
Proceeds
For expansion program.
Underwriter—To
be
determined
by competitive bid¬
ding.
Probable bidders: Halsey, Stuart & Co. Inc.;

announced that it is expected that a new

was

series

Co. of

service

Proceeds—

Underwriter—May be Blair

program.

Soutnwestern Bell

announced company, a subsidiary of
Valley Gas & Electric Co., plans to issue,
within one year, $4,000,000 of bonds, $1,100,000 of note*
and $900,000 of preferred
stock to its parent in -ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
it

new

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Feb. 11 it

Valley Gas Co.

April

reported company plans to issue and sell

was

construction

Smith, Barney & Co.;(joint¬

Blackstone

about $10,000,000 of debentures this summer.

noon

Eastman

(jointly);

Beane

Lynch,
Dillon,

ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Sept. 24.

Southern Union Gas Co.

(7/24)

by the company in New York up

Fenner

Union Securities & Co. and

Salomon Bros. & Hutzler.

(EDT) on July 24 for the purchase from it of
$2,220,000 equipment trust certificates to mature an¬
nually on Aug. 15, 1958 to 1972, inclusive. Probable bidto

Pieree,

(7/25)

in New York up
to noon (EDT) on July 25 for the purchase from it of
$6,000,000 equipment trust certificates, series XX, to be
dated June 1, 1957 and to mature in 15 equal annual in¬
stalments. Probable bidders: Halsey, Stuart & Co. Inc.;

-Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; White, Weld & Co.; The First Boston Corp.;
Morgan Stanley & Co. and Drexel & Co. (jointly).

Kidder, Peabody & Co. and Merrill

able bidders:

Bids will be received by this company

program.

competitive bidding. Prob-

writer—To be determined by

Bids—Not ex¬

Dillon, Union Securities & Co.

pected to be received until next Fall.

"
'
v
Phitadeipnia Electric Co.
June 28 it was announced company plans issue and sale
of- additional bonds later this year.
Proceeds—For con¬

Co., New York.

(307)

The Commercial and Financial Chronicle

of long-term re¬

Rather it appears

holders of

will be offered a
of

several

term issues.

likely

maturing obliga¬

choice of

relatively short-

(308)

The Commercial and Financial Chronicle

Ashton Adds

•

Staff

Funds' Oil Share

(Special to The Financial Chronicle)

Mich.

DETROIT,
Thumme

has

—

staff of Ashton & Co.,

McNichols

the

15315 West

Christopher Adds

(Special to The Financial Chronicle)

KANSAS

Jones

Mo. —Harold

CITY,

connected

now

with

Building,

members

the

New York Stock Exchange.

1 nereases

number of

lit

Keystone

Incom

Common

Stock
Fund
S-2
increased
its
holdings in oils and drugs in the

half

the

fiscal

year,

ac¬

Noteworthy in Keystone's port¬
folio changes were the addition of

FUND

Abbott

Laboratories,

Warner-Lambert

giving the fund
the field.

Yiatmat,
,

Pfizer

and

Pharmaceutical,
3.6% position in

Added

the

oil cate¬

gory were 20,000 Atlantic Refin¬
ing Co. and 20,000 Socony Mobil
Oil Co., Inc., bringing Keystone's
oil holdings to 13.3% of the port¬

St?
SfaA&eu'eJi

YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &

of May 31

FREE INFORMATION

FOLDER AND PROSPECTUS TO

The

RESEARCH CORPORATION
Established 1930

Incorporated

)

FUTURE
INCOME?

Investors

mutual fond
a

list

selected

\vitll

tlie

weightings: Auto

"following
t i v e, 9% ;

m o

invested

securities
for possible

INCOME in the years

and

ahead.

3.6%: Finance, 4%; Ma¬
chinery. 3.8%; Metals, 3.3%; Of¬
fice
and
Business
Equipment,
4.5%; Oil, 13.3%; Railroads, 8.9% ;
Railroad Equipment, 3.0%; Steel,
12%; Utilities, 11.1%, and other
industrials," 12.6%.
As

Incorporated
!/ JIncome Fund
a

CURRENT*

INCOME?

w'"ho">

also

had

and

out¬

record

shareholders, 21,749.
share

S-2

Bethlehem

had 60.000
Steel, with

Steel. Those two issues constituted

the

largest individual holdings.
Among the other large holdings
were Sinclair Oil, Phillips Petro¬
leum, Great Northern Ry., Central
South

West Corp.; Chesapeake
Burroughs, CIT Financial
Corp., and Liquid Carbonic.
& Ohio,

oil

the

$11.75

for

the

value

$12.75

was

a year

the

12-month

asset

compared

earlier.

financial

reports

Standard

The

1956

of New Jersey

Largest

stock

company

$122,577,000.

of Amerada

investment

company

Pharma¬

ceutical Co.

Eliminations

with

Smelting Co., Ltd.
Acceptance
Corp., Ltd.
5,500 Kennecott Cooper Corp.
7.100 Kimberly-Clark Corp.
14,000 Koppers Co., Inc.
27,500 Public Service Electric &

and fifth in order of

Fourth

common

stock of Continental Oil Company.

The oil group includes oil producers, refiners and distributors
well

integrated companies.

Investment companies

during the period.
20

Largest Holdings

(In Order of Size)
June, 1957
•

(

Number of

Shares Held

Company—

Holding;

The

Farnham Fund

Stein

The Texas Company.

Roe

$0.18

ordinary income
to

per
pay¬

stockholders

with

the

divi¬

dend

announcement,
Harry
II.
Hagey, Jr., President, disclosed
the following figures:

For the

funds, aggregating

84,912

Shell

Oil

Continental

Phillips

California

Co.—.

Oil

Petroleum

67.221

64,925

Mobil Oil Co._

Socony

67,328

—

55,232

51.486

Louisiana Land & Exploration

45,955

Superior Oil Co. (Calif.)

record

July 12.
conjunction

$125,995
107,721

_____

81,921
Standard

Incorporated have

dividend

(000 omitted)

83
43

(N. J.)

Petroleum

Amerada

Declares 18c Div.

Net

Dollar

Value of

Companies

Stein Roe Fund

•' ■

Investment

Standard oil Co.

six-month period, total
net assets rose 6% to a new high

43,558

Sinclair

43,144

40,629

.26

34,861

Oil

Standard

Cities
Ohio

Corp

Oil Co.

Service
Oil

(Indiana)

Co.__

i—L

Co..—

$66,509,761,

thus

than $330

Net

fis.sct

value—

July 12/57 July.12/56
$19,715,221 $16,432,,307

28,899

outstanding

asset

643,669

519,213

*$30.63

value

$31.65

per

"Capital gain dividend of $1.75 per share
in December 1956.

Seaboard

Oil Co.:—

25,777

Sunray Mid-Continent Oil Co
Royal Dutch Petroleum Corp

24,241

20,244

Signal Oil & Gas Co.

16,787

Principal.

fund is avniluhle from
your

d/joifon fduml

investment dealer.

Massachusetts Investors

Berkeley Street

Boston, Mass.

Growth Stock Fund

Massac/msetts
Investors Xrust

Century Shares Trust
Canada General Fund

At June 30

common

stocks rep¬

resented 81.1% of

8.9%, corporate

bonds

5,400 U. S.

assets, corporate

short-term

LIMITED

notes

0.2%,

Stocks

portfolio
Crown

Governments

Steel.

eliminated
were

800

from

the

Carrier,

1,300

Zellerbach,

3,000

Bond Fund
OF

—A TJ. S. incorporated mutual fund
pro¬
viding diversified, managed investment in

Canada. For free prospectus mail this ad to

CALVIN

BULLOCK

A prospectus

American

BOSTON

Business Shares

relating to the shares of any of these separate
be obtainedfrom authorized dealers or

investment funds may

VANCE, SANDERS & COMPANY

The

anced

111

DEVONSHIRE STREET

selected

for

portfolio bal¬
preferred stocks
common
stocks
possibilities.

supervises

between

bonds

stability,

growth

and

BOSTON
STREET, NEW YORK 5

Prospectus
NEW

Name_______

Balanced Investment Fund

Company

selected

Established 1894
ONE WALL

YORK

Broadvray

CHICAGO
Iio South LaSalle Street

LOS
*lo W eat

ANGEI.ES

upon

request

Seventh Street
r v ■*

Address

com¬

stocks, by industry, being
oil
18.5%,
steel
9.5%,
electric
utility 8.0%, electrical and elec¬
tronics 6.6%, railroad 5.5%.
Total
net
assets
of
Selected
In the second quarter of 1957,
American shares at June 30, 1957,
newcomers
to the stock portfolio
as reported by Edward P. Rubin,
were
3,500 shares of American
President, were $67,430,053, equal
Viscose, 3,700 Bristol-Myers, 7,000
to
$8.86 a share; in addition a
First National City Bank (N. Y.),
93-ccnt capital
gain distribution
2,000
Kaiser
Aluminum,
5,000
was
paid in January 1957. These
Kennametal, 3,000 Otis Elevator,
figures compare with $58,764,720
5,000 Reynolds Metals, 500 Rohm
or $9.77 a share on June
30, 1956. &
Haas, 14,400 Westinghouse Elec¬
Dividends
from
investment
in¬
tric.
Increases
in
prior
stock
come
totaling 14 cents a share
holdings included 1,500 Babcock
were
paid in the first half, the &
Wilcox, 5,600 B & O, 1,500 Cities
same
amount per share paid in
Service, 1,700 Colorado Interstate
the first half of 1956. Outstanding
Gas, 2,000 General Electric, 1,500
shares
at
June
30
of
7,609,962
Goodyear,
2,000
Kroger,
4,000
compare with 6,011,801 a year ago.
Merck,
5,800
Remington
Arms,
mon

In Assets and Slis.

Tiif. Parker Corporation
200

The company hacl
stock investments in 94 companies,

Reports New Higlis

each

and cash 9.8 %.

the five largest holdings
prospectus

29,777

Skelly Oil Co.—

;

paid

Selected American
A

hold

now

stock of 121 such corporations. Last year the figure was 136.
V %
The number of investment company members of the National
Association of Investment Companies increased from 152 to 162

32,500 Seaboard Finance Co.

com¬

stocks of oil companies

common

Gas Co.

largest

currently held by investment companies are the stocks of Gulf Oil
Corporation and Standard Oil Company of California which, last
year, ranked sixth and fourth respectively.
Fifth last year was

17,325 Industrial

July

second

investment

Third largest current holding is the common stock of The Texas
Company, $84,912,000 of whose shares are held by 56 investment
companies. A year ago, The Texas Company had the same ranking.

20,000 Arizona Public Service Co.
15,000 Briggs & Stratton Corp.
22,500 Hudson Bay Mining and

the

panies owning shares valued at $107,721,000. Amerada also ranked
investment companies held its common
stock valued at $89,600,000.

the

Radiator

Standard Sanitary Corp.

share from

Petroleum

holding,

second last year when 29

20,000 Socony Mobil Oil Co., Inc.

Directors

when the previous

holding at both times was
represented by the common stock of Standard Oil of New Jersey.
Eighty-three investment companies currently hold its common
shares valued at $125,995,000. A year ago, 80 investment companies

current

15,000 American Brake Shoe Co.
20,000 Atlantic Refining Co.
15,000 Dana Corporation
13,000 Pfizer (Chas.) & Co., Inc.
17,000 Warner-Lambert

in June

and

largest investment

Common

14,000 Abbott Laboratories

able

made.

was

held shares valued then at

Additions

35,000 American

available

six-

Investment Changes
Dec. 1, 1956 to May 31,'1957

declared

industry

These holdings of oil common stocks represented approxi¬
mately 12% of total assets of member companies, the Association
slated, when the current study was made in June 1957 from latest

study

period.

November,
$12.19

from

rose

Adjusted for the
Special Distribution made last

enabling S-2
to maintain its second-place rank¬
ing among Keystone's 10 domestic
,
o{

5,658,415,

months'

,i°t

result of the recent 4-for-l

Keystone

relatively the same dollar value
as Keystone's position in
Republic

INVESTING

;

Drugs,

GROWTH of CAPITAL

for

portfolio

consisted of 52 individ¬

issues

split.

Established 1925

ual

Keystone S-2

Building, 2.7%; Chemicals. 5.6%

Broadway, New York 5, N. Y.

Fund

folio.

Among the major liquidations
were
22,500 Hudson Bay Mining
and Smelting and 14,000 Koppers.
Co.
' " "
\\\%*; "
■
;
•.

WRITE FOR

INVESTING!

$11.33

President S. L. Sholley.

INVESTMENT

S-2

number

Asset value per

cording to the semi-annual report
just
made
to
stockholders
by

MUTUAL

120

record

standing,

Holdings
Oil-Drug Field

first

The

B. C. Christopher & Co., Board of
Trade

million.

Keystone Stk. Fund

Holdings Up 11.4% in Past Year

investments

Association announced.

By ROBERT R. RICH

Road.

stock

Thursday, July 18, 1957

the 162
open-end and closed-end investment company members of the
National Association
of Investment
Companies increased from
$1,178,924,000 to $1,313,138,000, or 11.4% in the past year, the

Mutual Funds

Kenneth C.

added

been

Common

New York

Lord, Arbeit A Co.
—

Chicago"

Atlanta

—

•
Los( Angeles

Grand

Number 5656

Volume 186

The Commercial and Financial Chronicle-

(309)

Union,, 5,200" Philips. petroleum,

to the Lackawanna

5,0()0' Standard.

Erie,

Gil of Indiana,
4,000 Thompson Products, 800 U. S.
Gypsum.
Reductions
in
prior
included

stock

holdings

6,000

Caterpillar

theless

the
5 By

International Harvester, 1,600 Ma-

sonite, 2,600 Mead, 15,000 Southern

<&V

over

in Indus-

stocks in

common

secondQuarter
—chemical and dru^e
ihe

Increases

were-

trif.pl

pWtmninc

nnri

imrhinerv

rrpnscs

1 2%

elec-

lip.

GERALD D. McKEEVER

trains earned well

held fractionally above the 1957 of-pocket costs.

CLa„A ocues UioVi^cf in
Qal~c
re

nig lesi in

Erie

item

the, forward Jook of the

management inr buymgv$l,508,000
along first mortgage bonds of the bank-

economy
and
it
is

operate

some

the

is never-

now rupt
Lackawanna
&
Wyomingwith Valley which is calculated to pro-

jointly

miles

road

vide

control of this line

when it

is reorganized. This 19-mile electrie freight line between Scranton

ing continued of the potentials of and Wilkes-Barre, Pa., gives the
a
merger with the Erie and the Lackawanna access to the latter-

The rather sorrY summary of passenger operating ratio of 122% Gelawafe & Hudson.
1
\
the results of
operations of the for the Lackawanna was one of
It appears
at this point that
Lackawanna for the first half of the lowest among the roads which worthwhile long-term improvethis year given in the recent state- do a large passenger business. It ment for the Lackawanna will
ment of President Shoemaker was was stated at the same time that have to come from some manner
taken quite in stride by the mar- all Lackawanna mainline through of
ket for the road's stock which has

well

between Binghamton and Elmira,
N. Y. Meanwhile, studies are be-

Delaware, Lackawanna & Western RR.

Railway, 7,500 Youngstown Sheet

&lE!* fof
try hidings of

avenues

planned

5,800

Tractor,

pursuing

other

sales

The Lackawanna

their out-

over

While this kind

city.
At

the

current

multiple of

price,

sells

stock

wanna

share earnings arte!

reducing its high costs rather yields less than 3%

than from any significant growth,
This
is
in
spite
of
a
certain

Lacka-

the

ample
nine times esti-

over

mated 1957 per

the

pro-

jected 50-cent dividend rate.

This

obviously represents

speculation
possibility of im¬
Fund's 25-Year History
It is quite likely that those who count such bookkeeping charges part of the roacl in
building its provement from one source or anSelected
American
Shares
industrial traffic.
Last year, for other. Suffice it to say that there
per- as
to a
marirpri
thp firct half
nf
9rdh
sistently poor traffic trend of this tram, its proper share of terminal
instance, 33 new industries were are
many
rail
stocks
offering
year with sales of $6,120,688, the """J since the publication of the expense
or of costs for use of located at various points served greater evidence of tangible near¬
lartrpcf for anv
half-vcar in Apnl income account showing a right of way, and which are comby the road, while another credit term value.
:—
:
the
historv
renorts Hanv $379'000 deficit after char9es for prehended
in the "formula" or
jow

made

last

February, of figuring does not take into

^ye been watching the

the allocation

ac-

Investments

national

Comnanv

<ft^477 9nfi

gross

sales

first

with

comnares

hnlf

thP

1956

Sales

for the

fa c°rfts.p0"?inS b°°kk,?pjng J,088 o£ f raill.ion

Selected

distributor nfTcsharcsThis
Of

months

ended

June 30, 1957 reached $13,348,292,
the
highest for any
12-month

deflclt of $84,000 for the first four annually for all passenger service,
months of this year' had antici" H is nevertheless apparent that
pated much of what was finally much of this loss is to be ascribed
learned-

For instance, May

Growth
17

TVf*

income
year

Outlook

'ID

the

road's

latest

June

issue

published

"Aviation

Distrib-

the

first

half

this

about $200,000

in
$197,711 net loss for the

that

Investor"

for

would

spite of

Missile Proem.

The

stated

President two weeks ago that net

Spectacular

was pointed

+•

the. fame tl™e> however,

the

pick-up which indicates

net"

about

$400,000

was

due mostly

to the credit for that
Group, Inc. in the interest month of the $314,360 quarterly
of Group Se- dividend income received by the
cunties, Inc. discusses the enor- road on its holding of 628,722
utors
of

Aviation Shares

growth of the guided missile shares of Nickel Plate stock. This,
program
which
has
increased nevertheless, indicated June net
more than 5,000% in the last seven
from operations at some $85,000,
years.
Distributors Group is the and this is modestly encouraging
mous

investment advisor of

sponsor and

^reLMers'and Oo^than MOT°'
$103,shareholder and more than

■000,000

Shares"

Its

assets.
the

"Aviation

under the

tributed

science,

penditure for guided missiles

ex-

may

day exceed all other defense

some

expenses

combined

and

quotes

cumulative

the

deficit

February,

were

due

five

thCvd„°f a"d karb?r
York Harbor

w
New

the

but

settlement

this disturbance did not lend any

improvement to the road's overall traffic picture. The result has

missile

field.

These

General

Dynamics.

E. F. Hlltton Adds

S^th

Spring

S°?eft

5,'°.?*?'

iJ.

00™

annual

loss

serv ce

could

beei? taken to date oh thfs petition
specificallv it has been inferred
Permission will not be
^ntecfsinceThe Commission

John

affiliated

1956

in-

than

the

that

results

much

worse

freight rate increase.

the

senger

MARYSVILLE, Calif -Helen H
has joined the staff of

freight rate increase is

the

besetting

Lackawanna

service
laces

revenues

about
.

annually.

problems

deficit

Stewart

lSSe

its

which
$5
j

pas-

the

million

—

above the

50-cent

es-'

tablishment of quarterly payments

*or Lackawanna stock,

1940
*Not

periods of both deflation and inflation.
The business appears to

mains to be seen
much

emergency

replacement
over

the

for instance
$5

million

capital outlay for the
the

draw-

upper

the Hackensack River

be financed under today's

dif¬

ficult borrowing conditions.

»ba'aSr.h.»
Esi

Fur¬
thermore,
the
road's
working
capital, an ample $21.4 million at
the 1954 year-end, suffered heavy
erosion due mostly to costs aris¬

'"Securities Co.
7_rl(

August,

and had

millioh at
then

1955, flood
to $4.9
the 1956 year-end. Since
the

ing from
damage

dealers

there

has

dropped

been

the

further

under $3.4 million
as of April 30 this year.
Like the benefits of freight rate
decline to just

increases, the effect of economies
also been badly blunted by
the decline in the road's business

and this in¬
cludes
particularly
the savings
from the joint use of the Hoboken
passenger facilities with the Erie
wltfcfi "on paper" appears to be
worth about $1' million annually
volume

possible

major

the

nominal

earnings and debt is at
proportions.

the

and

the

reveal

issued

reports

Earnings
Grinnell

ADT

true

not

earning

by
fully

power

system. Operations of certain

subsidiaries

important

this

year,

the

consolidate

results

Canadian

cent

not

are

its

•

2,403

1,556

1,229
1,378

impressive growth of book
vaiue since 1947 is shown:
value—Grinneii

Tangible Assets Available

< Net

share common)

1947

—__

$41.40

1956
note:

;

153.55

Not

including changes in balance-

re-

Grinnell

enjoying

doubleexpansion,
a

barreled

long-range
Significant growth has been dem-

onstrated in both phases of its
business, and, short of a major
catastrophe, further consistent expansion would seem to be doubly
assured by the sheer weight of a
substantial annual increment of
earning assets generated from retained earnings. Although the re-

sults^of this policy

not neces-

are

The sarily attractive to the stock buyer

acquisitions.

earning

imposing

$2*995

growth sheets of unconsolidated subsidiaries.

part

has been financed out of retained

devel- who is primarily interested in
immediate income, they should be
of great interest to the investor
looking for long-term growth of

power

oprjd by Grinnell is shown in the

following table:
stock

net

earnings

manufacturing

Corp.

earnings and book value.

j 37

American"Fire &T HoimesIII'-II"

^36
~~~r

repoited net earnings—— $17,55
net
earnings
of

Total

-Unconsolidated

central electric protective

services
•

Total
"Not

consolidated net

4.42
——

earnings $22,07

including results of Canadian sub-

sidiaries.

the

above

total,

for

central service

activities.

six

The

is traded in the Over-theCounter Market and sells around

stock
ion

tVm

frowth phayacteristics

WU; .As tne grOWtn cnaraCteriSllCS

and improved quality of earnings
become

the

fully

appreciated,

stock of this major
will attract a greater

capital

company

Stein Bros. Add
especial

to the fihancui.

LOUISVILLE,

stockholders

$4.00

times Consolidated earnings.

is esti-

$6.15 per share were

that

accounted

the earnings
low rate, around

appraises

following.

;

mated

rently

Grinnell at

re-

AjCeived from:

The financial community cur$15.92

dividends

•

Grinneii

divisions

amount

Estimated

Grinneii

Ending Dec. 31,

Year

Eatoafd

Earnings Per

Net

capital

has

Further-

scde determinant, however. It re-

can

F*usS

2,916
2,143
*
l!t

with

not

and

consumers.

operations. Only ADT reports its
results separately. ADT does not

bridge

utual

institutions

more,

(
!
'

(ADT paid only $1.50 in dividendnof the $4;60 earned in 1956.)

not! subject to rate-making
and their numerous con-

ness

(—0.HI)

$5,743f#j
.

bodies

consolidated with parent company

—

'»C^S"T

available.

ADT has handled itself well in

Earnings alone may not be the

how

It was pointed out in

the 1956 report, however, that the

-——

dividends at

dividends

Net Income'

(—000)

18,387
12,361
9,255

1944

Depreciation

27,093

which declaration marked the

been

received

$39,711

^ose^TThe^correspond^
One

Jensen & Stromer, 426 East Fifth
Street.
•

has

stock of ADT.)

1952—

LKnnna
Some observers look for a good
recovery for the Lackawanna in
tke sec?nd kal^
year and
one estimate, which allows for a
farther 5% increase m freight
J,apes under
p^(3in^ fx. ^arie

the

long-term growth
of
ADT
1940.
The capital stock of-

ADT

Gross Kevenues
(—000)

!<*>kithan the 37£ een^per share

680

Years Ending'

andbehveen

case

carried

books at $1,985,000. Table II shbwa

1948

worse

and

entirely self-fi-

AMERICAN DISTRICT TELEGRAPH CO.

Ter^PvCitv

c^nnphonnfl

nanced

was

TABLE II

Susquehanna Junction and PaterThp

those

revenues for the first four months

the

Joins Jensen & Stromer

fom

District

supplement

Dec. HI
qnn

th^se

ADT's investment in

every year 8ince 1903- (Grinnell
Telegraph's n°w owns 70%
of the capita!

York, Susquehanna & Western to
k '
7r__ffp
t
.
it
NJ

1956.

corporations

38 Can

r£de which is suggested by the
cents per share payment for
second quarter of this year.
The latter represents a more sober
appraisal of the immediate out-

have

pStaa.

mPany

ectuses

American

activities

generally

the direct and indirect acquisition
of control of three companies«in

since

ePreSS1°n"Pr°

and

1956. ADT now holds a strong
position in the central electric
protective field in Canada through

the

befound."

Electric

similar type of service is offeiled
in a total of 1,924 communities fin
the United States. ADT subscrjtbers totaled 63,492 at the cjlosefof

trict Telegraph Company for over
45
years
and their business is

mll4~r <sPrvicp hctwPPn

Holmes

associated with the American Dis-

residential

would

from

(specini to the financial chronicle)
-

New

trols; it deals primarily with busi-

$4.1 million, and all that
concluded

nullifying the increase in

now

*;?aJd permit tim maintenance of

at about

The effect of the traffic decline in

ANGELES, Calif.

protection

without

LOS

vault

which $h°5 would be available
after sinking funds. This in itself

and

D«.B- Compton is

The Security I Like Best

the Lackawanna

ago

coraoarablv

vague

have many of the favorable characteristics of a public utility. Yet

can

espe-

bank

sutler

the

...

299 action, places 1957 net income
the road at $1.85 per share of

Boeing, North American,
Lockheed, Douglas, Sperry-Rand
Division

Continued from page 2

York,
Philadelphia
and
Pittsburgh. This acquisition was made
in April, 1950, at a cost of $4,256,-,
Utili'ies Commission for permis- 000 financed entirely out of the
company's treasury. Subsequently,
w Ycm
in
July, 1953, the company
reduce the passenger loss by to do acquired Western Union's con$600,OOO annually.
Pirmission
refused last year by the trolling stock of the American
Commission and the road there- District Telegraph Company. A
comment regarding this acquisi"p?n asked ^Permission to cur- tion that appeared in the 1953
S " Annual Report is of interest:
"Grinnell
Corporation has been
$450
reduction in the

naSsSer
?•!! S

V-ir-

•

■

that, in spite of the latter, total

include:

Martin,

Convair

•

applied to the New Jersey Public

high level military source in pre- been that the benefits of the
dieting that missile research can freight rate increase of last Dec.
eventually provide a virtually im- 28 have been nullified and negated
pregnable defense against enemy as far as the net results are conbombers and projectiles.
cerned as compared with those of
:
The publication also lists com- the first half of 1956.
The road
panies held by "Aviation Shares" places the annual revenue gain
which have successfully entered from the last freight rate increase
the

and

Julv 9 reWd to bennft the New

P?h "F*? *°*; **
tW°
of this year which con-

tto„Claa?d"g lerXuHcal14 tifnee strike P?rt
Tf
and
aeronautical
"°n

circumstances.

months

only mutual fund months'

"Aviation Investor" states that

to commuter service,

J.ay' ?956'. and |he June 8-8% de- operation.
has been scarcely iess omiTwo years
It'was

ror

car-

the

on,

—

loadings of the Lackawanna were cially to that part of which ind™n aMost 10% from those of volves unprofitable branch line

period.

Cites

achievement

•

President

Sebel,

ficure

particular

fund?

amount

'reUivefa toteTmf

dividends

during

chronicle)

Ky.—Yandell R.

Smith Is with Stein Bros. & Boyce,

1956. Starks Building.

The Commercial and Financial Chronicle

(310)

The following

Indications of Current

latest week
week

Business Activity
Latest

steel

Indicated

July 21

Equivalent to—
fiteel ingots and castings (net tons)

July 21

2,181,000

BUILDING

CONSTRUCTION—U,

LABOR—Month of May
Total new construction—

377,000

Private

construction

1.743,000

1,783,000

2,003,000

2,028,000

12,446,000

12,737,000
8,052,000

12,460,000

12,434,000

7,730,000

8,341,000

7,677,000

185,920,000

188,523,000

193,565,000

———.July

28,597,000

28,212,000

26,148,000

Distillate fuel oil (bbls.) at

——July

119,592,000

114,997,000

101,789,000

178,549,000
26,760,000
98,289,000

Residual fuel oil (bbls.)'at

—July

46,248,000

44,662,000

41,246,000

39,779,000

732,349

733,477

478,297

3ocial

July
of cars)—July
ENGINEERING

535,334

610,406

560,704

523,218

—

New

7,085,850

7,189,900

7,337,950

7,915,000

8,080,000

7,974,000

27,966,000

27,736,000

dwelling

Revenue

523,987

July 11

CONSTRUCTION

ENGINEERING

CIVIL

0
6

$325,465,000

July H—July 11
——July 11
-July 11

111,090,000

freight loaded (number of cars)
freight received from connections (no.

Revenue

—

construction

construction
Public construction

Private

——

State and municipal

—

Federal

—July
-July

Bituminous coal and

Pennsylvania

SALES INDEX—FEDERAL
SYSTEM—1947-49 AVERAGE = 100

DEPARTMENT STORE

(COMMERCIAL AND

FAILURES

214,375,000

242,957,000

177,365,000

207,924,000

96,012,000

35,033,000

77,038,000

1,500,000

*9,040,000

10,020,000

1,317,000

69,000

690,000

602,000

52,000

nonresidential

All

INDUSTRIAL).

—July 13
DUN A
"ly 11

11,964,000

11,056,000

11,958,000

—

9
9

uiuy io

Jbjy io
Ju y 10

Ju}y J®

Louis) at
(delivered) at
Zinc (East St. Louis) at
Aluminum (primary pig. 99%) at
Straits tin (New York) at

—July
Ju y
——July
July

fZinc

10
10
10
10

_July 16
July 16

—

AVERAGES:

Aaa

nonresidential

and

water

$64.oti

SoO.bi

$54.50

$54.83

$44.83

28.775c

28.800c

31.375c

3:3.225c

27.350c

26.250c

28.625c

34.975c

J4.000c

14.000c

15.000c

16.000c

13.800c

14.800c

15.800c

10.500c

11.500c

14.000c

10.000c

11.000c

25.000c

96.750c

97.875c

98.375c

uly 16

85.85

8/.18

90.77

92.35

102.80

93.23

93.67

95.16

93.52

93.67

93.97

PRICE INDEX—

enterprises.

INVENTORIES
NEW
of

3.58

4.25

4.23

4.15

427

-109

3.97

3.90

LIFE

DEPT.

—

SERIES

4.10

4.06

3.98

4.15

4.03

4.72

4.62

4.39

4.36

4.25

4.19

4.16

4.06

Month

—

4.16

4.14

3.41

GO
4

50
30

•

34/

-x

■

April

♦$52.3oi:

$48,000

18,00'J

13.100

12.600

;_ZZZZZZ

23.700

23,700

23,900

$89,200

_Z_

STRUCTURAL

INSTITUTE

♦$89,100

$84,500

STEEL

(AMERI¬

CONSTRIC¬

291,750

360,351

329,626

313,391

$221,800,000

(tonnage)—estimated-....

INSURANCE—BENEFIT

425.7

Annuity payments

$223,800,000

...

PAYMENTS

INSTITUTE

—

358.271
-

306.223:

LIFE

:_L__:

—

Policy

238.939

270,298

323,485

LIFE

272,591

263,469

446,373

370,740

455.338

512,197

110.18

110:22

110.33

LIFE

PURCHASES

INSURANCE

1,522.200

119.400.000

$479,500,000

April

Z_22"

$3,748

r,,~

$3,857'"

$2,829'

536

mil/

COMMERCE)—NEW

•

UlliiL

$4,188

*$30,383

$27,723

*21,875

20.235

$52,482

$5,524

21,895

-•••

sZ,-

,847

*$52,263

$47,958

28,549

\/UlLO

5.49

1,118

$30,587

t_Z:_.'-__-:______:_Z_Z--_Z_ZZ

Total,

♦28.770

$5,753

•

'-If-

512 y

■

SERIES—

Month of April (million of dollars):
,,Inventories— .
v
■> 'Durables
Z
.'Z.'Z--1
Nondurables
:Z

1,955,570

277,620

344,190

302,960

183,410
839,380

20.300

24,800

14,700

13,500

June 22

268,600

394,930

266,880

288,900

419,730

311,580

Sales

(000's

Member

543,230

435,830

June 22

562,635

611,225

June 22
June 22
June 22

93,460

124,640

101,960

71,530

641,606

690,795

510.680

477,374

735,066

815,435

615,640

548,904

June 22
June 22
June 22
June 22

2,360,575

2,997,585

2,337,210

1,781,350

391,380

493.630

422,620

2,138,306

2,773,035

2,035,070

2,529,686

3,2b6,6oo

2,-to

l,o

i ,u

Market

$2,820,197-

$2,847,308

27.802

318,625

337.406,

817.190

807.352

869.672

228,584.529

221.595.121

211,896.052*

100.060.628

100,657,111

104,115.390

listed

value

REAL

FEDERAL

balances..'.

credit

free

borrowings
borrowings

listed

bonds

U. S. Govt, issues..

other

ESTATE

SAVINGS

collateral-.

INCOME

37.715

75.512

67.583

2.211.152

2.204,675

2,921

2,473

2,615

$339.3

$322.8

70,122

2,371,587.

FORECLOSURES—
LOAN

AND

CORPORATION—Month

PERSONAL

$2,833,264
39.059

value

NONFARM

_\_

customers

319,579

Member
Member

balances..

debit

net

customers'

ANCE

ODDLOT
DEALERS
AND
SPECIALISTS ON N.
Y. STOCK
EXCHANGE
SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers' purchases)—t

27,231.

hand and in banks in U. S

Cash

268,440

1,538,184

May

carrying margin accounts—

extended

Member

of members—

EXCHANGE—As

customers'

Total

„

z_I_

omitted):

firms

Total

Credit

off the floor

;

STOCK

YORK

234,950

-i

:„z.

Totai;

NEW

221,450

June 22

;;

•TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF

TIIE

INSUR¬

UNITED

March

STATES

—

Number

June 22

1,321.026

1,493,134

1,279,631

835.964

June 22

$71,218,077

$82,069,610

$67,445,684

$47,241,503

_June 22
June 22
—June 22
June 22

1,099,282

1,284,529

1,184,437

812,134

8,895

7,924

8.674

2.837

1,090.387

1,276,605

1,175,823

809,297

$57,518,106

$65,663,329

$59,018,009

$40,563,965

297,550

341,980

353,590'

297.550

341.980

353~590

209,510

Dollar value
Odd-lot

purchases by dealers (customers' sales)—
of orders—Customers'

Number

Customers'

short sales

Customers'

total sales

other sales

Dollar value
Round-lot sales
Number

8hort

June 22
June 22
June 22

sales

Other sales
Round-lot purchases by
Number of shares

TOTAL

EXCHANGE
FOR
Total

430,160

547,810

469,070

MEMBERS

LABOR

June 22

NEW

SERIES

—

DEPT.

564,120

547,570

307.080

June 22

465.770

10.968.610

13,337,630

11.432,460

8.201.790

June 22

PRICES,

—

11,434,330

13,901,750

11,940,030

8,508.870

foods

117.8

117.4

117.5

114.1

July

products

91.5

90.4

90.9

90.4

105.7

106.3

102.6

July

106.6

July

commodities other then

farm

93.1

96.5

81.7

July

and foods.

97.1
125.5

125.4

125.3

"in*

one-half cent

figure.

31.7

29.8

*39.2

37.2

industries

Government

...

employees'

...

contribution

special

for

39,3-

6.7

labor

Proprietors

income

and

223 296.8

in¬

surance

6.7"

5.8

7.6

rental

interest inconiC

and

dividends:

Total transfer payments

nonagricultural

7.5

51.7

income

*51.6

50.1

31.3

31.1

29.4

21.8
325.1

income

pound.

RECEIVED
—

'Includes

FARMERS

DEPT.

TURE—1910-191
All

farm

—As

OF
of

7.2

20.9
.

—

18.7

324.0

307.6

—

INDEX

AGRICUL¬
Mav

15:
243

.....

vegetables,

fresh

1.191.000

barrels

|'»

foreign

•

*249

*259

258

270

179

_______

237'

263

hay

232

228

grains

1C0

225

grains and

Food

Fruit

*240

*242

*2*4

266

...

*242

244
315

products.

Crops

192

226
*227

Livestock

Dairy

products

Meat animals

Poultry
Wool.

and
_

eggs

265

145

*263
454

24-1

459

242

*232

248

252

247

278-

crops

Potatoes

264

156
457

Oil-bearing

121.4

crude runs. ?Based on new annual capacity of 133.495,150 tons-;
fte of-.Tan.
1. 1957. as against Jan. I, 1956 basis of 128,363,090 tons.
tNumber of orders not reported since introduction of
Monthly Investment Plan.
JPrime Western Zinc sold on delivered basis at centers where freight from East Str. Louis exceeds
♦Revised

59.1

31.7

Service

Feed,

July

Meats
All

*61.8

Cotton

(1947-49 —100):

commodities

Processed

62.1

...

Commercial

Commodity Group—
Farm

*102.2

NUMBER

sales

WHOLESALE

*234.9

101.6

PRICES

(SHARES):

Short sales
Other

234.7

Total

round-lot sales—

Total sales

All

327,240

STOCK

S340.4

total.

producing industries
Distributing industries

Commodity

ROUND-LOT STOCK TRANSACTIONS

AND

ACCOUNT

ON THE

.COMMERCE)—Month

personal income
Wage and salary receipts,

Personal

June 22
SALES

(in billions):

May

Other

dealers-

STOCK

itOUND-LO'l

Total

Less

dealers—

shares—Total

(DEPARTMENT

209.510

shares.

•

b3.900.000

$575,800,000

1.469

1,111,680

1,544,090

233;870

—

85,200.000:

INSTITUTE

—

Month

—

Industrial"■:

1,022,770

Short sales

108,300.000

104,700.000

INSURANCE

(DEPT.

271,780

purchases

9,700,000

110,600.000

•j-

1,530,470

sales

•

$560,800,000

108,93.

430,790

Total sales

41,600,000 '

178,617
56

2,031,500

Short sales

O3;bd0.000 i

10,000,000
45.800.000

000,000's omitted):

273,007

158,025

253,850

|
purchases

__________

Ordinary

1,505,720

Other sales

68;5iH).000

9,800,000

dividends

Total

426.1

428.3

1,637,310

Short sales

$205,500,000 :

44:100.000

3.58

1,228,100

Total sales

63.500.000

...

Surrender values

412.2

June 22

COM¬

Disability payments

3.73

1,227,510

purchases

sales

$52,500

INSURANCE—Month of April:
Death benefits

3.51

•

June 22

Total sales

•

3.48

4.17

the floor—

Total, round-lot transactions for account

7
■

dollars):

POLICYHOLDERS

3.38

—June 22
June 22

—

•'

TION)—-Month of May:
closed,'•(tonnage)—-estimated...-

3.27

4.19

—June 22
June £2

sales

82
•

•

113/

Contracts

3.49

3.98

4.72

July 12

purchases

Other

•

"335

I ~l ~~~~~~

Shipments

FOR

Total sales.

Total

1(6

2.95

3.58

3.61

July 16

£
JTu|y °
_—Juiy b
—July 6

Short sales

Other

117

.___

development../
public_l____;

other

CAN

105.69

ACCOUNT OF MEMBERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks In which registered—

Total

33
"

4 55

Total

104.48

100

Other transactions Initiated

•

99.36

90.34

Percentage of activity
Unfilled orders (tons) at end of period

Total

systems..

Retail

104.31

93.82

92.64

92.35

93.82

Ju|"

Other transactions initiated on

Wholesale

94.22

87.24

87.50

87.11

93.23

ASSOCIATION:

OIL, PAINT AND DRUG REPORTER

Other

216

.38

95.o00c

.July 16

July 16
July 16

Production, (tons)

Total

334

233

(millions

24.000c

July 16

Orders received (tons)

=■

374

building...

service

MERCE

103.97

TRANSACTIONS

Manufacturing

108.16

—

AVERAGE

306

1,123

105

13.500c

25.000c

94.71

MOODY'S COMMODITY INDEX

1949

97
■

Water,
Public

106.21

Group

ROUND-LOT

307

236

Conservation and

97.62

Group

NATIONAL PAPERBOARD

387

$64.56

July 16

Group

Industrials

441

$64.76

96.38

milll
Utilities

432

;

96.38

.July 16
July 16
.July 16
—July 16
July 16

U. S. Government Bonds

Average corporate

Public

143:

_<.

Matured endowments

Railroad

119

1,062

Military facilities '

Sewer

July 16

YIELD DAILY

and

5.179c

—July 16

Group

BOND

___

5.670c

95.16

Industrials Group
MOODY'S

1,229

____

5.670c

5.967c

July 16

Group

Utilities

101

institutional
Administrative and service

Sewer

96.54

Public

158

354

buildings

251

94.56

Railroad

164

179

265

July 16

—

Baa

131

„

128

493

190

256

—July 16

corporate

135

140

__1

private

FABRICATED

AVERAGES:

U. S. Government Bonds

Average

;

/•

construction-...

BUSINESS
—

PRICES DAILY

■

recreational..

Highways

QUOTATIONS):

at
York) at

MOODY'S BOND

July

(per gross ton)

(St.

Lead

295

insttitulional

and

utilities

Other

258

190

„-j_'

706

271
263

146

and

713

141

Educational

10,878,000

refinery

Lead (New

Residential buildings

Electrolytic copper—
Domestic refinery at

Export

747

construction

other

Public

July
July

(E. & M. J.

building

Industrial

125

(per gross ton)

Pig iron

Scrap steel

METAL PRICES

352

287

Telephone and telegraph
Other public utilities

143,067,000

90,016,000

107

lo.)

(per

1,150

270

;__Z~1/

Railroad

220,105,000

124,359,000

COMPOSITE PRICES:
steel

940

326

buildings

Educational

Finished

995

373

•

BRAD.STREET,, INC
IRON AGE

1,539 -

___

Religious

437,272,000

July

2,839

1,300

Office buildings and warehouses.
Stores, restaurants, and garages......

Other

$657,377,000

210,232,000
273,377,000

ELECTRIC

$3,962

2,579

1.405

Commercial

Hospital

RESERVE

INSTITUTE:
Electric output (in 000 kwli.)

EDISON

6
6

$3,G41

2.803

units

Industrial

Nonresidential

(U. 8. BUREAU OF MINES):
lignite (tons)—
anthracite (tons);

COAL OUTPUT

$417,704,000
174,747,000

$4,032

alterations

and

Nonresidential

■-/•••

Farm

$483,609,000

Ago

(nonfarm)_________

Nonhousekeeping

Public

NEWS-RECORD:
Total

Year

Month

Hospital
ASSOCIATION OF AMERICAN RAILROADS:

;_Z-

....

buildings

Additions

„

DEPT.

(in millions):

Miscellaneous

(bbls.) at

Kerosene

Residential

27,339,000

of that date:

are as

lonth

15.3

INSTITUTE:
Crude oil and condensate output—dally average (bbls. or
42 gallons each)
July
Crude runs to stills—dally average (bbls.)
July
Gasoline output (bbls.)—
.
—July
Kerosene
output (bbls.)
July
Distillate fuel oil output (bbls.)
July
Residual fuel oil output (bbls.)
July
Stocks at refineries, bulk terminals, in transit, In pipe linesFinished and unfinished gasoline (bbls.) at
—July

25,876,000

either for the

are

>atest

AMERICAN PETROLEUM

6,952,000
'H 7,840,000

of quotations,

cases

Ago

85.2

*2,015,000

§2,073,000

or,

Year

Ago

*78.7

that date,

production and other figures for th«

cover

Dates shown in first column

month available.

Month

Week

£81.0

statistical tabulations

month ended

Week

AND STEEL INSTITUTE:
operations (percent of capacity)

IRON

AMERICAN

Thursday, July 18, 1957

275

:*250

144

-150

178

i286

*233

310-

Number 5656

186

Volume

The Commercial and Financial Chronicle
i

"'"•ft*

Continued

hended.

from page 6

the
it

Long-Range Business Effects of
The Suez Crisis: Here and Abroad
Dy

-j

from

percentages—

—N—-

output, to

supplies,

energy

petroleum supplies, to Middle
Eastern petroleum supplies — are
common to all the forecasts I have
.....

ioi

seen

ii,.

the rise in these countries' fuel
imports after 1963, although such
will

neaily

be-

double

riopaHp

r,.v,

anj

tween now and then. The scope
and

Iran, for example, gets 50% of
budget revenue from oil and

its

devotes

60%

ber

the

Kuwait

the

...»

the

European

unixca

States

siaies,

built
a

nu-

nuclear

nuciear

well

growth

were

increase of

supply

and

Middle
as

final

crisis

petroleum

and

SMes
oil

for

Both

for

the

tankers.

and

cents.

flood

orders for

new

Let

tankers

bas

the

orderare for

de-

fleet

maIi J

cheanpr

t.h^ro

trend

Good

to-

designed for

super-tankers

Hone

rather

clers^^have nut

the
than

additional strain

capacity to produce heavy steel
' plate here and abroad.

Thus, growing dependence of the
on Middle Eastern oil is in-

West

escapable for some years to come,
For the longer-run, however, develooments underway even

ari

before

the Suez crisis will tend to reduce

long

run,

political

the

will

tend

DOUGLAS,

Arthur

—

securities

rn, H

O'okiep Copper Company

at 44 Coult

Limited

today declared a
the
Ordinary Shares of the Company payable
September 3, 1957.

dividend of ten shillings per share on

Norman Weisman Ooens
Norman J. Weisman is

engaging

securities business from offi-

street, New

,aV.A
^ork City.
«

•

r»i

•

Form Economic Planning
Economic Planning Corp. is en¬

what
busi-

business

securities

offices at 521 Fifth Avenue,

New

rrkis

The

Directors

the distribu¬

authorized

tion of the said dividend

September 13,

1957 to the holders of record at the close

of business

September 6, 1957 of Amer¬

ican shares issued under the terms of the

Deposit Agreement dated June 24, 1946.
The dividend will amount to approximately
$1.39 per share, subject, however, to any
change which may occur in the rate of
exchange for South Africa funds prior to
September 3, 1957. Union of South Africa
non-resident

shareholders

tax

the

rate

of 6.9% will be deducted.

By Order of the Board of Directors,

Citv

York

Dividend No. 43
The Board of Directors

F. A.

New

Form Haitian American

SCHECK, Secretary.

York, New York, July 16, 1957.

Haitian American Dealers, Inc.

petrol(:um Paction in foreign
countldes outside the Middle East.
4nd while
enormous expan-

engage

ably aad ap to somewhat greater

CORPORATION

securities

business.

; July 10,1957

Robert Merriman Opens
.t.here wiR be a greater conRobert Merriman is conducting
centration upon tankers, especially
super-tankers; pipeline construe- a securities business from offices
tiorl m^ fo^ a tbne favoJ s,afer at 47 West Sixty-Eighth Street,
routes llke. that through Turkey. New York City.

capacity of the Suez Canal

TENNESSEE

Hyman Ketchel has opened offi¬
at 220 Broadway, New York

ces

City,

conroftATio*

Office

•I1producitlon aad transport
?.f Middle Eastern oil must con-

reduce

capacity and of pipeline facilities

wwMSSti

Ketchel Opens

]y[yron a. Lomasney has formed

Lomasney & Co. with
0ffjces a^. 39 Broadway, New York
engage in a securities

of fiftydive

share was
payable September
1957, to stockholders of
per

declared

25,

record at the close of busi'
ness

jy[yron ^

dividend

(55c) cents

Myron Lomasney Opens

will still be needed. For new pipe- total investment in energy during busj.pess#
lines, the Suez crisis has meant the coming decade than we might
tion of the oil flow. These changes
a
reexamination of prospective otherwise have had, and there
Joseph Reed
have been accelerated by the crisis, routes. At present, a group of in- may be somewhat stronger up,TOTTTAT/-,
at
v
First of all, increasing stress is ternational companies are nrepar- ward pressure on fuel prices than
FLUSHING, N. Y.
this

WILLIAM

Street under the firm name of

from
now

the close

Chairman

fl?m

gaging

Sue/

August 15, 1957.

July 11, 1957

will still aecd to be increased, but
dependence on the Suez Canal and "
uot be expanded as rapidly
to reduce the need for additional as
otherwise have been.
pipelines, expansion of the Canal's
All Riese developments probfleet

sccnritips

BROOKLYN, N. Y.

ones

long-range

of business

engage 111 a

Primaek i<? conducting

ncT ,be placed upon developing

Although the expansion of the

tanker

holders of record

years.*There LTaircoarGreate^ste.sfwni
Gieatei stiess will

sharn

Economicoperatfon afoSnd

+uan

have been rising.

the

the capital stock
the Corporation, payable
September 3, 1957, to stock¬
on

dent before- Greater stress will has been formed ^with^ offices at
now be placed upon developing 2350 Broadway, New York City,
energy sou.rce? other than petro- to engage in a securities business.

of the free world's

much

Franklin

4021

dividend of $3.00

rorms Lmpire Mutual

11 llaS speecled up a number
of trends which were already evi-

^.t

tanke

develoned

holds-Cape

anywhere else, and costs elsewhere

the

summarize

Pfjw«

enjrn^n

business.

Conclusion

nGSS

hminL

hope that such economic in-

seem

offices

Empire Mutual Funds,

and short-range

reserves,

very

ctrect

addi-

petroleum through the Suez Canal. There are
although it presently ac- now oniy about a dozen SUpercounts for only one-fourth of the. tankers of over
40,000 tons, but
free world's production. Finding there are likelv to be about 300
and developing crude oil has been Gf them by 1965.
New tanker or70%

With

terests may override more divisive

alternative meansaoftreoil
There has been

dollars

The Middle East

the provision of

is^inrt ^vorfd

oil rests uoon.warc|

Eastern

facts of geology and

may

Heavy ana growing dependence
Middle

70%

•

thf^vpav0First'

And, of course, the Middle
East provides most of the oil used
east of Suez, where energy
demands are also increasing.

solid

££££%£

period.

nnm

KENSINGTON Marvland—T vie

of both these counIran, have for some
understood the ada steady flow of oil

countries.

trends

which

this

double

much

The Board of Directors has

SchmRtJ^^0\ nasDisenlormea
?F. &

ficulties for these oil-transporting

The world order book for

Western Europe,

than

caused real foreign exchange dif-

mendous

United

imports from the Middle East

should

area

transport.

30 to 40% in the United States and

Venezuela.

output

decade, compared with only

dropped

East

Canal dues in Egypt and pipelines revenues in Syria yield much
smaller sums, but cessation of
those
incomes
last
November

sources.
....

than 150%

Eastern

blocked last No-

production

SUGAR

CORPORATION

declared

Schmitter Co. Opens

the

NOTICES

PUNTA ALEGRE

per

to the West.

have been accelerated by the Suez

DIVIDEND

Penn-Texas

figuratively.

wh0le,

—

firm.

and oil more cheaply than obtained loans from oil companies
meanwhile, we shall operating in their territories. The

Middle

entirely

literally

•

foresaw

away

and prior thereto had been a part¬
ner in Marshall, Campbell & Co.

Secunties Company is engaging
in a securities business from offices at 1165 Parkcrest Drive,
Jame.s J- Ortasic is a principal of

l'41Sla(le we, can, 0+tfin Iraq and Saudi Arabia sought and

East.

the Middle

velopment of petroleum supplies
in petroleum demand and a 250%
outside the Middle East. The Presigrowth in U. S. net petroleum im- dent of Standard Oil of New Jerports, to 3 million barrels a day. sey, in noting this last April, menMr. Walter Levy in a recent arti- Roned Turkey, North Africa, the
cle estimates that one-fourth of Caribbean, Venezuela, Colombia,
these imports—about 800 thousand
an^ Peru as areas which might
barrels a dev—will have to come help provide a greater diversity
The Chase Bank people

Little

nrndneer

apparently

?e ieceJving orcters trom aoroaa governments
year o£ the growth of the world
fo1' nuc'ear Power equipment.
tries, and of
petroleum industry from 1955 to
Another trend which the Suez time clearly
1965. They foresaw for the United
CI"is*s kas accelerated is the de- vantages of

from

oil

Right after the Canal and

DALLAS, Texas

will develop more slowly, Iraq One indication that this cutrelative to our total energy re- back hurt was the fact that both

Manhattan

States in this decade a 50%

people

inhabitants

oil,

careful forecast last

Arthur A. Blaicher passed

Form Penn-Texas Sees.

the

power

Investors

Associated

Services.

0f them all though it has onlv 200

thousand

-n

United

name

growing num-

largest

the

The petroleum

Chase

the

of the

timing

phenomenon is not limited

to Western Europe.

are

Pandelogiou is engaging in a se- July 10 at the age of 72. Mr.
curities business from offices at 22 Blaicher had been associated with
Midtown Road under the firm Coggeshall & Hicks since 1943,

Iraq

For

spread

Iraqi

oil

past experience.

experts

economic

figures

corresponding

buez crisis.

the next decade, and aie

Bank made

this

development, projects.
the

Arthur Blaicher

CARLE PLACE, N. Y.—Arthur

^7 pipelines
doubtedly been influenced by the vemberj

consistent with several decades of

The

Associated Investors

make

so.

ascending

t~j

tncity requirements by 1967. This
latter program aims at stopping

imports

from the Middle East.

governments in

working

requirements, and a 50% increase
in net imports of crude oil and
products, most of which must come
These

some

are

lux countries, calls ^loi nucleai fgady beginning
generation of 15% of theii ^h~c- benefits of oil to

V*ith this 17% expansion in output, they foresee a
20% increase in primary energy
to 1960.

years

But

area

and 70%, and huge irrigation proj17% in the five many, France, Italy, and the Bene- £cts recently completed are al~
^

rope may grow

(311)

September 11, 1957.

John G. Grfxnburgh
Broadway
Treasurer.
6, N. Y.

New York

dependence and to minimize

Western vulnerability to

interrup-

Opens
TnC0^

developing"sources ing"plans foVuoYo 1~500~miles 'of there would otherwise have been. Reed is engaging in a
of energy other than petroleum, pipeline from the Persian Gulf to
Some political trends have been business
oiuces
CoM—which still provides about the Mediterranean through Iraq accelerated,
too. These include Sprmglield Bouievara.

being"placed

of the world's

energy—is

re-

and

ceiving increasing attention in Europe.
Coal output cannot be increased very fast, however.
The

the implementation of the Euro-

Meanwhile, Europe is importing
coal from

us.

14% of United

Common Market, the Free Trade
Area, and Euratom. They include
also a larger, more conscious involvement of the United States in
Middle Eastern affairs,
But nothing has happened either
to reduce our present dependence

upon Middle Eastern oil, or to
during the next few years alter the fact that during the cornit misrht have been.
ing decade we shall become inThe trends I have outlined were creasingly dependent on Middle

production was exported last year, compared with
about 3% prior to World War II.
The recent f»xnort expansion has
been
imnortant in
pushing our
coal outnut back up toward the

speeded up by the Suez crisis bef*ause it dramatized the growing
dependence of the West on Middle
Eastern oil and reminded us—in
case we had forgotten the interruntion of Iranian oil supplies six

1951

years

States

coal

Eastern oil. Therefore, by far the
greatest effect of the Suez crisis
has been to increase our awarej^gg Gf the shadow which potential difficulties in that area cast

offers exciting
the longer-term

ago—that while the Middle
Fast desperately needs order as it
struggles to leap the centuries.

the future growth prospects
of the western world. Whether,
jn
addition
to
increasing our
awareness,
the Suez crisis has

future, and it j* ^ere that the Suez

there are likelv to be occasional

a]s0

peak.

Nuclear

power

possibilities
crisis

for

ultimately

mav

have

largest business efferts.
Britain recentlv trinled

its

its ini-

up0n

darkened

disorders along the way.
shadow itself
it
But we ou^t not to forget that uncertain.
a hundred million residents of the

Eastern countries
also
have a large and growing interest
in selling oil to the West or par-

the

lightened

seems

still

DIVIDEND NOTICE

ft. J.

Middle

electricity r^uirem^nts, from nu-

the

ticipating in its transport.
For
most of these people, laboring in

LOS ANGELES, Calif. — James
B.
Kennedy is now connected

pro-

abject poverty, that interest is not

with

clear

facilities

Continent,
gram

=»

19^5.

nurWr

power

recently, proposed for Ger-

yet

tangible

clearly

appre-

WitL

li9l.Je

lipoids

Tobacco

Company

I TrJkam

Wiui narris, upiuun

West Sixth Street.

Co., 523

clared the following

Salem

has de¬

dividends

ending Septem¬

19S7:
Dividend
Per Sharp

Class of

Stock

cigarettes

$1.02

4.18% Cwnetotive Preferred

Washington

smoking tobacco

4.08% Cumvkrtiv* Preferred

...

1.045

4.30% Cumulative Preferred

Prince Albert, George

...

1.075

$1.40 Dividend Preference

QUARTERLY DIVIDEND
A

quarierly dividend of 80
per share has been de¬

«45

■

All dividends

are

payable

cents

clared

the

B Common stocks

New Class

Common and

the

Company,

of business August

payable

before September

30, 1957

stockholders of record August

30, 1957.
F. Milton Ludlow

Secretary

15, 1957.

W.J. CONRAD,

(Special to thb financial chronicle)

Harris, Upham &

The Board of Directors

ber 30,

Camel, Cavalier, Winston £

DIVIDENDS

QUARTERLY

for the quarter
Makers of

September 5, 1957 to stock¬
holders of record at the close

plans for nuclear power and
now
experts to be generating 6
million kilowatts, or 15% of her

tial

and Gas Company

community idea, through the

pean

rapid

hand.

Public Service Electric

securities

Turkey, with a capacity
greater than that of all the existing pioelines combined. Expansion of the Suez Canal will now
OEEC estimates that West Euro- depend on Egypt rather than on
pean coal production can be raised
the Suez Canal Company and, al5% in 5 years if annual investthough Egvpt has announced exment in this sector averages 25%
pansion plans similar to those of
above the 1955 level,
and pro- the Company, it mav be doubted
grams of this
magnitude are in that development will be quite as

45%

.josepn. ivi.

Secretary
Winston-Salem, N. C.

July 11, 1957

PUBLIC SERVICE
CROSSROADS

IKE EAST

The Commercial and Financial Chronicle

(312)

the

BUSINESS BUZZ

Thursday, July 18, 1957

records show that

one

large

will receive

farmer

than

$200,000 from the Soil Bank this
year
for not planting cotton.

on.

•

1956

Kansas

Colorado

wheat

farming corporation re¬
$61,354 and others re¬
ceived
$50,000 checks for not
growing wheat.
ceived

Behind-the-Scene Interpretation*
from the Nation'*

And You

Capital

—s
\
\

Under

the

agriculture

new

appropriation bill, the amount a
could
receive
in
Soil

farmer
*'"■

Be¬
of ten
of
the
working force in the
United States were tilling the
soil. Today only one out of ten
are
farm
workers,
with the
other nine employed in indus¬
C.

WASHINGTON, D.

—

fore the Civil War six out

of the people in
this country are living on the
farms. Some of the agricultural
states, like Iowa, are likely to
lose a Congressional seat after
the 1960 decennial census, just
as some did in 1950, because the
Only 13.5%

population growth did not keep
up with the national average.
the

Despite

communi¬
centers and

and

agriculture

life,

continue

will

shift

great

industrial

ties

urban

tremen¬

dous factor in the Nation's econ¬

The reason is simple, be¬
the families now living in

omy.
cause

the

country

going

fibre

and

food

duce

are

for

pro¬

the

growing population.

both major politi¬
cal
parties
in speech-making
and party platforms were seek¬
ing to capture the farm vote.
They pointed to the plight of
the dwindling farm income and
the

than

1,000,000 low-income farm famlies.
Each party made broad

promises.
A

of agricultural bills

series

pending.
Meantime,
the
farm surplus disposal bill has
passed both the House and Sen¬
ate and is ready to go to the

are

extension

for the

provides

It
.

the

Agricultural

Trade Development and Assist¬
ance

Act of 1954,

until June 30,

provisions include in¬
from S3 billion to $4

Other

creasing

value

the

billion

commodities that

can

surplus

be sold to

friendly nations for their cur¬
rencies.

The

creases

from

also

measure

$500

in¬

million

million the value of
that may he used
foreign relief grants.
$800

for

Bank

The

farm

surplus

into

surplus

farm

while

income

abroad

total of

food

during the

year.

pounds
bution

rose

period

domestic

45%

were

2,818,400
donated

Foreign distri¬
over

year ago.

increases

the

same

The biggest
were

made

distribution of surplus com¬

not coincide with

the "Chronicle's"

"I'm afraid

production

bit

wee

lower

were

a ten thousand dollar investment is just a
high for me — do you have anything a trifle
say for about two dollars and fifty cents?"

own

views.]

COMING
EVENTS

—-

kept in effect: and, conservation

Investment

Field

of soil, water, trees and wildlife
for the

growing population.

Farms have grown

with

fewer

larger and
mechanization, but

the

production has been climb¬
ing.
Therefore,
it
generally
agreed that it is still too early
determine

Soil

the

duction
use

full

the

Bank

effect

surplus

and

farmers
acres

the

1957

re¬

land

long-range
adjustment.

Under

The

the
12,800,000

program

put
about
wheat, 5,200,000

national
per

acres

average

for

acre

the

pay¬

1957
$18.07

will be about
wheat,
$37.17
for
corn,
$50.80 for cotton, $64 for rice
and $231.39 for tobacco.
program

for

More
are

now

than
in

28,000,000

the

than

Soil

acres

Bank, and

21,000,000

the

Reserve,

Previous Failure
The old basic farm legislation
enacted

during-the

depression

1933

sought to control
production with acreage allot¬

year

ments in order to achieve

level of price support.
did not work out.

stituted 87% of the value of all

plus

CCC inventories

high
The law
a

The facts are farmers selected
their best lands, fertilized heav-

stockpiles

creasing

have

been

in¬

neither

the

facts

Congress

are

nor

the

Department

of Agriculture

nor

the

themselves

farmers

toward

nearer

solution

nent

modities and
after

lems

century

appear
perma¬

surplus

other
a

farm

com¬

of acreage

allotments,

that

nation

has

prospered under scarcity. There¬
fore, they insisted that for the
general welfare of the United
States it
a

was

far getter to have

great abundance of foods and

other products.

It has been said

times that about half of
population goes to
bed each night with some hun¬
ger pains.
many

the

World's

(the Farm Surplus

Disposal bill

is different) pro¬
$3,666,543,747
in
fiscal

vides
1958.

The Senate

the

approve

release
for

the

was

expected

report
and
White House

President Eisenhower's sig¬

nature.

the

loans

Gas

and

summer frolic

loans

;

Fall

Meeting at Santa Barbara

Biltmore.

13.3

bales.

loans and inventories

siderably

were

than

lower

July

Oct. 7-8,1957 (San Francisco, Cal.)

con¬

year

ago.

Association of

cotton

carry-over

Stock

Exchange

Firms Board of Governors meet¬

ing at Mark Hopkins Hotel.
Oct. 10, 1957

(Omaha, Neb.)

Nebraska

Investment

Aug. 1 is expected to total 11.6

Association

million

Bankers

field

bales,

million

bales

three

about

less

than

year

About 7.7 million bales of

ago.

have

cotton

been

sold

by the
Commodity Credit Corporation
abroad during the current cot¬
ton year.
Domestic mill pro¬
duction
for

expected

account

8.3 million bales.

annual

frolic

Omaha Club).

Oct.

10-11,

1957

(Los Angeles,

Calif.)
Association

Stock

Exchange

Firms Board of Governors meet¬

This

cotton,
in

that

means

presently

and

there

Congressional

there will be

there

demand

good

are

for

forecasts

circles

that

good market for

American cotton abroad during
the next twelve months.

Nov. 3-6, 1957 (Hot Springs, Va.)
National Security Traders Asso¬

ciation

Annual

Convention

Dec. 1-6, 1957

(Holly wdod Beach,

Fla.)

-Investment Bankers Association

Limit "Soil Bank" Payments

Annual

Several Democratic Congress¬
have written letters to the

Convention

Holly¬

wood Beach Hotel.

men

Commodity

inventories.

White

House

Agriculture

Secretary
Taft

calling attention to
Soil

Corn,

resulted

con¬

Western

wheat, cotton and tobacco

and

Ezra

Bank
in

Benson

assert¬

some

abuses that have

Arizona

States.

and

For

April 23-25; 1958
Texas
ers

(Houston, Tex.)
Group Investment Bank¬

Association

annual

meeting

the Shamrock Hotel.

other

instance,

TRADING MARKETS

A. S.

Botany Mills
Campbell Co. Com.

Bank of America

Fashion Park

Lone Star Steel

Indian Head Mills

United States

Sulphur

| Carl Marks

Bought—Sold—Quoted

FOREIGN

SCHERCK, RICHTER COMPANY

320 N. 4th St.
St.

Louis 2,

Mo.

National Co.

& C.o Inc

2-0050

•

NEW YORK 5. N. Y.
TELETYPE NY

Riverside Cement

Flagg Utica

SECURITIES SPECIALISTS

20 BROAD STREET

JZTL: HANOVER

Member Midwest Stock
Exchange

Teletype

Envelope

Morgan Engineering

Old Ben Coal

<L 456

the Homestead.

Delhi-Taylor

Bell

and

day at the Happy Hollow
Country Club (to be preceded
by a cocktail party, Oct. 9 at the

ing at Beverly Hills Hotel.

Northwest Production

Pan American

1-971

LERNER & CO.
Investment

..,

"'L11"°—>

Cal.)
Investment Bankers Association

July 1 amounted to
year's production.
production in 1956 to¬

The

Country

•

Sept. 25-27, 1957 (Santa Barbara*

Denver-Rocky

and golf tourna-

ment at the Columbine

Club.

CCC loans and inven¬

Cotton

The House agriculture appro¬

priation bill

CCC

.July
nearly half of

ever

Credit Corporation totalled $7.6
billion.
This
included
both

Anheuser Buscli

bushels.

talled

out

States.

Mountain Group of IB A annual

year's production. Annual wheat
production is about one billion

annually

inventories

amounted

(Denver, Colo.)

Bond" Club

produced

United

and

85%

Meanwhile, as farm ills were
being explained and discussed
in private circles, economists in
the government were pointing

program

Universal Match

the

tories

As of July 1 the price support

Colorado Oil & Gas

prob¬

quarter

Aug. 1-2, 1957

About three billion bushels of
corn

Furthermore,
that

commodities under loan and in

alongt with increased

costs.

of corn, 3,000,000 acres of up¬
land cotton, and 80.000 acres of

ments

ily and adopted all approved
practices. As a result farm sur¬

High Cost of CCC

Olin Oil

269

area

irrigation, 957 pounds.

and may or
may

War II

tion Reserve.

propor¬

Oklahoma

pounds,

pretation from the nation's Capital

net

plus
more
than 6,500,000 in the Conserva¬

tions for the fiscal year ended
June
30.
To recipients
here

because of wartime price incen¬

tives for high

last

States

359

changes

World

after

averaged

farmers

production

crop

competition

[This column is intended to refleet the "behind the scene" inter¬

with

maintain

hand:

postponed

crops

aids the need

barters and
stocks

with

Department

the

under

produced

Southeastern

Texas

warehouses
sells,

government

while

disposal

reached record

program

their

the

Reduce

follows:

amount

times,

with

pounds, Delta States " (Missis¬
sippi, Arkansas, Louisiana), 499
pounds, and the Western States

sums

changing
States

can

year

the major objectives of the Soil

Acreage

Record Food Donations

and

Agriculture,

pro¬

The cotton yield per acre for

True, D. Morse, Under Secre¬

tary

and

irrigation

the

in .1958.

ments

With price

with the Southern States.

ization for acreage reserve pay¬

sur¬

pluses

the

legis¬

tobacco land in the program.

1958.

Cotton

Senate still must
conference report)
$500 million author¬

used

irrigations
systems
are
now
high in the production picture/

(the
a

South

in the United States.

program

lation

approve

Old

practically all the cotton

supports

Senate passed

White House for the President's

signature.

The
duce

the .Western

House and

provides

payments for 1958 would

limited to $3,000.

Competing With the South

is
going to be continued at least
through next year's crop. The
Bank

Soil

The

make

A year ago

plight

"Soil Bank" Continued

farm

Wooing the Farmer

the

Bank

pounds
of food was distributed for the
school lunch program and to
charitable
institutions
in
all
48 States, the District of Co¬

rural

from

in the school

use

lumbia, and five Territories.

try and the services.

families

for

modities

lunch program.
A total of 426,300,000

Securities

10 Post Office Square, Boston 9, Mass.
T elephone

HUbbard 2-1990

Teletype
BS69

Full text of Commercial and Financial Chronicle : July 18, 1957, Vol. 186, No. 5656

FRASER