Full text of Commercial and Financial Chronicle : July 19, 1956, Vol. 184, No. 5552

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ESTABLISHED IS39

UNiVER S»»V

MICHIGAN

OF

Reg. XJ. 8. Pat. Office

Volume 184

New York

Number 5552

EDITORIAL

Price 40

7, N. Y.? Thursday, July 19, 1956

Obseivalions

Economic

on

Dean Emeritus,

.'

Kremlin

is

"winning

cold

the

Lehigh University

ROY L. REIERSON*

By

,

of Business Administration,

School

'

the

Copy

By NEIL CAROTHERS

•

•

Whether

a

Unions Lower Wages

Trends in U.S.and Abroad
-

Cents

^

war,

tion
we

and

other critics would have

as

do not

certain. It may

be

years or even

cross

tain, however, that

we are

tal.

Those wrho have in past years
should

that of

be

of

enforcement

a

sort

a

insisted that our

of

Pax

could not

decade

or

employment

and

output; have

nothing in

our

recent record to suggest

play such

a

role with

r:

in the

things now stand we do not stand well with
many nations of the earth, and we are uncertain -N
own

our

again

minds what to do next. We have, been

-

i Continued

*

on page

-

is

human

credit policy

.

made

•;

ever

For

improvement

low

there

and

little

is

it

'

Continued

*

on

the

page

all

is

in

the

the

world

flat.

was

so.

area

most

The

In

of human affairs
of

economics

fooled

reason

locked

Nail Carothers

>

there

America

million
-

that

by

subsidy
lobbyists,

for

this is

the

process

are

about

four

enterprises, interin
a
gigantic
productive
governed by forces of prices,
separate

credit, and investment of incredible complexity. In this

■

impenetrable maze of forces, the first effect of

by Dr. Reierson before the Ninth International Bank¬

Continued

ing Summer School, Rutgers University, New Jersey, July 12, 1956.

—

be.
people be¬

years

the range

are

science.

almost

28

of

how¬

may

complexity of the industrial system.

of

19

authority,

statement

-hunters, special interest
demagogues,
and
ignoramuses
in
high place. Economics is a science.
But, admittedly, it is an inexact

Yet the major industrial nations in the
r

that

In

people

past few years have made real and notable progress. This
T

the

Authority said

to

evidence

supposed

thousands

lieved

standards of living are still abysmally

Roy L. Reier...
.

of

some

by

false

•

shared equally

in

labor union.

a

race

{stability.* Thus, although

especially

—

been

unhappy fact that a large proportion of the
will believe any statement that is repeatedly

an

has

free to | contribute

higher standard of living if there

a

never

underdeveloped parts of-the world—

SECURITIES NOW IN REGISTRATION
and

had

the economic expansion of recent

years

on

page

an

30

investors in cor¬

Underwriters, dealers and

afforded a complete picture of issues now registered with the SEC
potential undertakings in our "Securities in Registration" Section, starting on page 32.

porate securities

DEALERS

become

economic]
in

♦An address
•

countries,

not all countries have

have appeared to

be trying to buy the
friendship of various peoples who have proved
to be willing enough to accept our dollars, but
who seemed to feel no obligation to follow our
lead. We have warned of imperialist designs by
other countries only to have the world—or imwe

would enjoy

and,

grow

to levels they

competition with unorganized major-

fiscal field and, in many im¬

portant

generous to a fault^with our treasure and our'
blood, yet few seem particularly grateful. All too
often

in

creasing; progress has been achieved

As

in

It

bit bv bit,
restrictions on trade are being liber¬
alized.
Monetary reserves are in¬

/

success.

to

earn

-

ex¬

continues

could

groups

than at any time since the end of
for that matter, since the onset of the
Great Depression. Business activity,

;

on

Holds chief aim of

ity of workers who suffer thereby. Contends low income

;

suming the requisite wisdom on our part—but

we

subsistence levels for 100 years.

unions is to increase members' wages

panded around the world; standards
of living are advancing; world trade

that

ganized two-thirds of werkers would have been
-

long period of years may have been right—as¬
there is

_

are

State, Municipal
and

IL S. Government,
Stale and

i

Public

Mutaieipal

Securities

; COPIES OF OUR

Housing Agency

Bonds and Notes

-

LATEST
telephone:

HAnover 2-3700
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TODAY'S

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FOREIGN

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BOND

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Burnham

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V

Company

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Members

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Bond Dept. Teletype: NY

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York

Stock

Chase Manhattan

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bank

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coast

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t

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To Dealers, Banks and Brokers

T. L.Watson & Co.
established

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Exchange

Orders

Canadian Exchanges

CANADL' J

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On

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All

Due

October

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Payable in United States dollars

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STREET

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to

yield 3.90%

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Gkporation

MEMBERS NEW YORK STOCK EXCHANGE
bridgeport

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upon

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CHICAGO

request to

Unlisted Trading

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Price

DEPARTMENT

DIRECT f IRES TO MONTREAL

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Analysts
our

At Regular Rates

Teletype NY 1-2270

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INVESTOR"

LETTER

CORN EXCHANGE

40

<

'

encouraging

World War II

supposed to have imposed upon the world for a

;
•

The international economic picture in general appears
more

is

to the Pax Britainnica which Britain

ogous

...

anal¬

Americana

Doubts theory

fluctuations ahead will be greater than during past

devoted to the

power

.,

entirely

or more

*

v

that cyclical fluctuations have been
displaced by smooth succession of rolling
readjustments.
For future, questions * whether rapid
investment expansion can be maintained, and the world
has acquired permanent immunity against the business
cycle. Hence, urges policies based on assumption that

quite cer-%

decade

forces, not unions,,
general wage level; raising wages of one
group does not help all other groups; and terms it an
erroneous notion that employers set wages at lowest
level possible. Avers increased productivity is wholly
due to improvement in machinery, contrary to propa¬
ganda that attributes it to workers themselves. Says if
unions were essential to obtain wage increases, unor-

T

•

troublesome new problems, as shortages of
raw materials, plant capacity and social capi¬

some

industrial

dealings with the remainder of the world.

our

role

a

although the

time since the Nineteen Twenties, it is clouded

any

by

not doing particularly

well and have not done well for

Dr. Carothers maintains economic

international economic picture is more encouraging than '
at

un¬

decades before

currents is to be. It is

Vice-President and Economist,.

Prominent bank economist maintains that
-

know with certainty what the*'net

anyone may

in

believe, 5

today is confused and

•

Bankers Trust Company, New York

determine

profess to know. The situation in which

the world finds itself

of all the

us

v ;

;

political opponents of the Administra-',

as

v

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

IRA HAUPT&CO.
Members
and

New

other

111

Broadway, N. Y. 6

WOrth 4-6000
Boston

York Stock Exchange

Principal Exchanges

Teletype NY 1-2708

Telephone;

Enterprise

1820

'

The Commercial and Financial Chronicle

For Banks;
**
■

...

Thursday, July 19, 1956

Brqkers,
Dealers only
*

v*

'i(|w

..J

..j

Specialists for
*30

:•

over

years.in:y^-'

[

<:-

Louisiana Securities
an<l

■■■■£■■-v.:...
Bought—Sold—Q noted

Insurance Stocks

;

Our 97th Consecutive Quarterly

Steiner, Rouse &Co
Members New

Comparison of Leading Banks

Members

York

American

Stock

Exchange

Stock

Exchange

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

and Trust Companies of the

HAnover 2-0700

United States

^Available

Established
Associate

American

Direct wires to

after remaining at practically
stationary levels for three years
now
appear to be stirring due
to improved Japanese economy.

Exchange

120 Broadway, New

York 5

Teletype NY 1-40

BOSTON

CHICAGO

•

PHILADELPHIA

For

I

SAN FRANCISCO

•

to

Wires

branch offices

our

1920

Member

Stock

WOrtb 4-2300

Private

La.-Birmingham, Ala.
Mobile, Ala.

request

on

NY 1-1557

New Orleans,

-'

information

current

-.ME

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write

or

.

Principal Cities

Yamaichi

Securities Co., Ltd.
Established
Home

Specialists in

'

Office

Tokyo

Brokers <&

r

1897

~

70

Investment

Branches
Bankers

'

111Broadway,N.Y.6 COrtlandt7-5680

Established

Since 1917

1856

H. Hentz & Co
McDonnell & To.

Members
New

Members
New

York

American
120

;

Stock

Stock

Exchange

Chicago

TEL. REctor 2-7815

■

Exchange

Cotton

Commodity

BROADWAY, NEW YORK 5

Exchange

Stock

York

New

Exchange

Stock

York

American

Exchange

Exchange,
of

Board

NewOrleans Cotton
and

N.

other

Cotton

Y.

Inc.
Trade

Exchange

exchanges

Exchange Bldg.

NEW YORK 4, N. Y.

Trading Markets

Air Control

t

Chicago

Products, Inc.

Bank of Virginia

Detroit

•

Miami Beach

Hollywood, Fla.

•

Pittsburgh

'

Coral Gables

•

Beverly Hills, CaL

Geneva. Switzerland

1

Amsterdam, Holland

Alabama-Tennessee Natural
Gas

Company

v

Southeastern Telephone Co.

Scott, Horner &

LAMB0RN & CO., Inc.
99

Mason, Inc.

W ALL

STE EET

NEW YORK;5, N. Y.

Lynchburg, Va.
Tele. LY 62

LD 33

SUGAR
Raw

—

Refined

—

Liquid

Exports—Imports—Futures

Trading Markets

Lithium Corp.
DIgby 4-2727

Lone Star Steel
0. A. Sutton

'

Oswego Falls
Rare Metals

'

ESTABLISHED

37 Wall St., N. Y.

1929

Tel. HAnover 2-4850

saving^

NATIONAL
of

BANK

INDIA, LIMITED




14-Year Performance of
-

35 Industrial Stocks
FOLDER

ON

REQUEST

National Quotation Bureau'
Incorporated

46 Front Street

New

1

York4,KY.

Volume 184

Number 5552

...

The Commercial and Financial Chronicle

3

(275)

Federal Reseive Policies

INDEX
B. S.
a

|i|^^Re{lect^£conoiiiic#ieBds:
By

A

Economic Advisor, Board of Governors of Federal

*

i

developments, and foresees the economy maintaining a high
equilibrium level for the-next six months, with less excessive

.

ation

v

<

trol;

(4)

importance of liquidity without dependence

Federal Reserve; and (5) reserves

structure includes other aspects

Monetary policy is
be—more
trends

should

—or

reflection of economic

a

than

the

determinant

those trends, as is

of

sometimes im¬

plied. Recent-,

re¬

some

ex¬

fear that the

tightness

of

might

money

bring

on

a

downturn in

the economy.
These fears do
not adequately
recognize that,

appropriate monetary
policy; tight money is an evidence
of
prosperity, and occurs only
under

the

when

of

resources

the

econ¬

utilized to
meet current demands for con¬
sumption
and % investment
and
omy

being

are

fully

businesses and individuals are en¬

deavoring to borrow to augment
for

incomes

their

penditures.

additional

such; a

At

ex¬

time, de¬

mands for credit exceed the avail¬

able

supply of savings and con¬
sequently demands for goods/ex¬
current

ceed

output. Easy money

correspondingly
there

exists

productive
deavor to
more

demand

total

tween

_

capacity.

when

'

slack

total

and

I

shall

en¬

reference

illustrate

and

to

recent

velopments.

"

economic

by
de¬

aims

and

/

results

of

monetary policies, as exercised in
this country by our regional Fed¬
eral Reserve System and in other
countries

by

with

banks

central

varying powers, are to regulate
the supply of primary reserves on
the basis of which bank credit and
bank deposits
an

expanded. This
essential task, but is also a

heavy

are

responsibility

because

be used to foster inflation or

to force deflation. The

instruments

.'4

it

not

of

monetary

policy

they require

precise and

* An address by Mr. Thomas before the

Wisconsin

Bankers

Association

tion, Milwaukee, June 20,

.

U.

G.

sustained

for

e c on o m.

i

credit

the

in

economic




STRATEGIC

18

Study Analyzes Stock Transactions,^

(Letter to Editor)

should, be recognized
that banks supply or channel, only
a

fraction of the total credit,

6

STERLING OIL

11

—

>

16

__

/As

Other- See

Us

(Boxed)—.—21

need?,

economy. Department ol
Commerce estimates indicate that

of

the

Record Volume of Earmarked Gold No Compliment to
'

J-F.Reilly&Co., Inc.

Dollar,

Says Walter E. Spahr_—i.__—

27

in 1955 the total of all

lic

and

showed

—

in

this

Foreign Bond's Debt Service Rate Reported Higher...

of

about

and

investments

the

of

commercial

Regular Features

„

than

*

-

billion.
While
,r§:\f
duplication
*. As We See It (Editorial)
and
1.
overlapping in the aggregate fig- "
ure for all debt, it isk evident that
iBank and Insurance Stocks
by

less

is

there

$5

some

are

sup-

1

Business

plied from business and personal
savings either directly or through

Man's

Bookshelf...

Dealer-Broker

investment, there should be added
in equities—corporate

Elnzig: "Sterling, Remains Inflexible"——

stocks,

business

Economic
tions

are

farms,
debt;

property,

homes—not covered

growth

determined

or

From Washington Ahead

by

Mutual Funds

by
the
flows
of
funds
through various channels and into

NSTA

Bank credit plays a
role of greater impor¬

r v

uses.

than

relative

-

indicated

is

stream.

be

It

added

to

&

new

that

"Our'Reporter-

Direct

May-———..—.

this

the de¬

sires

to

of

the

community
in

the form

posits and

currency.

of

created

money

/Public

.

hold

of

If the amount
is in excess of

Utility

.Securities

43

Now

in

11

New York Stock

Registration

Security Offering

page

.

.

.

and You—By

1 The Security I Like Best

T

•

SOUTHLAND

17

Wallace Streete

RACING

•

'

...

4

Around
Twice

1
Drapers' Gardens, London,
land, c/o Edwards & 8mlth.

Weekly

CHRONICLE

FINANCIAL

Reg. U. 8. Patent Office

.

•

,i""

"

Every

B.

New York

2-9570

SEIBERT,
DANA

Reentered

-

7, N.

Y.

ary

25,

to

as

1942,

eecond-clase

at

Editor & Pnbliiher

SEIBERT,

state

President

city

issue
news,

—

market

news,

bank

etc.).

Other

ChlMgo

Off War

3,

HL

i75

South

quotation

Possessions.

in

Febru¬

at

Territories

Union.

Dominion

Canada.

of

Other
Bank

St.,

(Telephone STate 2-0613);

and

and

$60.00

$1,000,000.

New.

rate

ol

of

creased

in

million.

year;

made

in

$67.00 per year.

cost

of

over

attendance

annual

racing

from 2

tracks

million

to

has

at

in¬

over

S

Send

for latest Report

Publications

Quotation

account

of

exchange,
New

at

Eighty-day Track Meet

year.

Record

—

Monthly,

postage extra.)

the

fluctuations

remittances

for

in

kora

(una*..

General Investing Corp.
Members

American Stock Exchange

for¬

eign subscriptions and advertisements maat
be

1945

greyhound

Members

per

greyhound racing

built

Scheduled Opening Aug. 30.
Since

8.

per

modern

was

T7.

$63.00

$40.00 per year.'(Foreign
Note—On

States,

and

track

Rates

United

Pan-American

the

8alle

matter

office

Southland, America's most beauti¬
ful

•

clearings,

-

La

post

Subscription

Other Countries,

Worcester
.

•

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

(general news and ad¬
and every Monday (com¬

corp'oration

and

the

$1.75

Eng¬

r

9576

Thursday

statistical

records,

O.

Copyright 1956 by William B, Dana
Company -

;

COMPANY, Pnbllahen

DANA

Park Place,

vertising- issue)

plete

B.

COMMERCIAL and

HERBERT D.

1-5

Stock

Common

Subscriptions

Y.

CORP.

2

44

Thursday, July 19, 1956

Glens Falls

16

Washington and You

26

WILLIAM

TELETYPE N.

-*

Chicago

36

—

The State of Trade and Industry

Exchange

"

Speculative Profit

32

Salesman's Corner.

The Market

ST., NEW YORK 4, N. Y.
•

For Worthwhile

41

—

will have the effect of

on

to

25

,

Securities

Prospective

-

bidding up prices — the ultimate
expression of inflation. An insuf¬
ficiency of money creation can
have the opposite effect, because,,
the public will withhold savings

Continued

Wires

5

-

Governments.-,

out

Railroad Securities

Securities

de¬

needs, then the spending of

excess

INC.

40 Exchange PL, N.Y.

Teletype NY 1-1825 & 1-4844

24

Our Reporter's Report

money

of the economy and with

balances

Mackie,

HA 2-0270.

Philadelphia * Chicago • Los Angeles

be kept in
line with the productive capacity

Schenectady

Singer, Bean

40
8

Bankers-.

Wilfred

•

42

*

About Banks and

request.

on

7

...

-

.;

.

Rights*

13

of the News—Carlisle Bargeron.—.

Notes

'Observations—A.

income

the

essential

is

creation of

the

V

-

••

-News

figures

can

such

Rare Metals &
1

the

by

of quantity be¬
system has the
capacity for creating new money

cash

8

J—

the banking

cause

that

Dontan Helicopters

8

made pos¬

sible

many

Recommendations

Indications of Current Business Activity—.

fluctua¬

and

Air Products

*Prospectus

investment

and

v

General Minerals

44

;

institutions. To this figure of debt

Investment

/

31

Coming Events in the Investment Field

the channel of various investment

\

.Cover

.

the credit needs

»

^

•

—

most of

New York 4

Teletype NY 1-4643

Ways of Boosting Home Building Offered by U. S. Savings and
Loan .Officials-1..—.—
LI.
39

year increased

same

DIgby 4-4970

■V"

$50 billion, the largest growth for
any peace-time year. Total loans
banks in

39

—

country

increase

net

a

42 Broad way*.

debt—pub¬
long-term and

private,

short-term

•

•

-

it

ments,

TELEPHONE HAnover 24300

Nashville

| GENERAL MINERALS

17

-

States

Hart

A. A. Potter Discusses Article by Robert de Fremery

develop¬

PREFERRED STOCKS

•

; REFINING

B. F. Goodrich Holds Man-Made Rubber Ample! for U. S. Needs

considering the role of Fed¬
eral Reserve policy and of bank

>

Boston

CORPUS CHRISTI

In

Spencer Trask &. Co.

•

WHitehall 4-6551

MATERIALS
NYSE

Conven¬

„

Dept.

STREET, NEW YORK

14

._

'

Albany

jack!

c

REctor

BROAD

of

BASIC ATOMICS

12

;

f

—Albert

back

to

junk

are

25

25

"

10

Importance of Commodity Prices—Roger W. Babson—

WILLIAM

Members

WALL

Liberty Bond Sale Campaign Created Army of Small Investors

Pnbllshed

specialized in

1

/—Gardiner S. Dresser

for

lots

Telephone:

:

1

—Richard G. May———

e

>

money.-

9

New Methods and Procedures to Improve the Railroad Plant

\
-

Th«

have

5

9

Rekstis, Jr._

dream

Obsolete Securities
-

.

Why Things Look Good Ahead—Arthur R. Upgren—_

J.

no

willing

bids

With

f-

;

Cobleigh

Policies and actions in other fields

1956.

For many years we

<

Our

4

__

is

We're

" V:

6

—W.

-

guides and

r

-How Dangerous Is the Economic Picture of the United

tance

Policy

3

high degree of judgment in their
application. Nor are they infalli¬
ble in obtaining desired results.

strategic

'

of Monetary

Principal

it

NIGHT DREAM
This

a

be¬

explain this relationship

fully

Role

occurs

serious

a

quantity of

or

__Cover

The Banker's Responsibility in Today's Unprecedented i
Economy—Don H. Wageman
i

upon

growth and prosperity.

and

Woodlief Thomas

than cost

A MIDSUMMER'S

Economic Trends in U. S. and Abroad

on

Pay-As-You-Depreciate Is Superior to Leasing

monetary

"tight money"

are

V

con-

sable

pressions of

can

#

discussion of

and

-

■

been much

has

straint

is

;

;

always important and may be
determining. Yet appropriate
monetary
policies are indispen¬

there

ly

:

—Ira

extending Federal Reserve credit and not by using member
bank deposits to purchase government securities. Shows credit

i

L._Cover

Hudson and Manhattan Railroad: Sick Transit

X

~

supplied to banks by

are

Carothers

—R°ger'M. Kyes_„

Mr. Thomas points out:

capacity; (3) principal argument for selective credit

AMD COMPAMY

Lower Wages—Neil

Meeting the Recession Challenge and Preserving Our Heritage

v

•;*

danger in meeting seasonal and growth credit
(1) "There has at no time
| been a contraction in the total volume of bank credit'* since
the 1951 accord; (2) banks
supply but a-fraction of total
credit, yet they exercise a strategic role due to new-money credemands;

........

.

-

credit expansion

r

..rv ...

.

Policies Reflect Economic Trends
—Woodlief Thomas
,v

^

recent economic and credit

Page

.

Federal Reserve

;

In explaining Federal Reserve essential aims, limitations and

results, the Board's advisor reviews

■'

,

—Roy L. Reierson_

.

*

;

•"

Observations

;

System

:

Articles and News

•

2X y

---'tr

Unions

WOODLIEF THOMAS*

Reserve

^

V,

80 Wall St., New York

5 • B0 9-1600

The Commercial and Financial Chronicle
4

Thursday, July 19, 1956

(276)

the

Meeting the Recession Challenge
And Preserving Our Heritage
Corporation

drift

ments

(3)

and scientists;

of

freedom

while

re¬

Retail

State of Trade

were

freedom.

Food

Industry

natiori
last

valued

his

cised

and

also

was

to

make; some
observations with respect to the
civil elements of our society

closings for

summer

the foundations

hre

upon

moned them from

which

their homes was

With respect to

the steel strike, representatives of steel pro¬

ducers and the steel union after conferring with Federal mediators,

agreed to resume contract negotiations at the close of the week.
As the steel strike entered its third week,

layoffs among railroad

and

trucking workers serving the steel mills rose sharply. Freight
carloadings were at the lowest level since the beginning of 1954.

exer¬

rights in colonial days,
from attacking the

Automotive producers

reported

country

u( r

o

founded.
let

Also

of

extent
d

e

basic

Launching

It

.s.r

I

established

been

some

recom¬

mendations for the future benefit
our

society and our country.

The

settlers

themselves

England
their

to

of

a

on

possessed
numbers

New

proportion

in

greater mass

a

than

intelligence

of

was*

found in any European
their time.

first

the

a

Jn

•

to* be

nation of

They had received good educa¬

and

care

which

and women
New
England

*An

address

Reserve
United

by

Mr.

Officers
States

La., June 22,

Kyes

before

Association

Convention,

New

of

citizens
citizen

of

such

those which

which antiquity had
J

i,

political experience
classes
gradually and irpper-

fectlv communicated to the other
members of the social body.

as

property

non-existent.

or

had

property

fend, and

of

his

The

upon

Ominous

of

land,

the

"cradle

of

America,"

we

nation//:C;/;;-/U

delve into

struggle
the

and

has

recently been prepared by

■>£

us

'

The

on

E

request.

The

yokes

has been

sign

.

borne

or

2

Affiliated with:

Burns Bros. & Denton, Ltd.

5

of the

Canadian Slock

»

2

*

Toronto

•

Montbeal

•

Ottawa

•

-4'

Exchange
Winnipeg

■

State

two

characteristics
'

r

ownership

parasitic

starting

or

nature
been

ever

a

•

What

successful
the

will

"/V

the

E

sovereignty of the people

as

much

earmark

as

Because

•

E

Hamilton

we

nation,

depression.

iiiiiituiiiiflEiiiiiiiiiiinHiiiiiiiHUHRiKHMiiiiiiiimtiiiiiiiiiiiiiiiimiiiimuiiiiuT




were

-

.

..

*

,

hurt

the

dig

can

car

building and other
are beating the

users

take

on

the

V///iV; '//'■•/'-

up.

outlines

of

an;

at-the start

hill

ant

of the

before

the

paper

further notes//.-

■

/;/////

at least not

The government has stepped in to
shapes and alloys in both mills and

Foreign producers are
offer United States

Administration
tude.

or

had been expected.

have little to

basis

the

of

leaders

are

against it themselves and

up

consumers.

taking an official hands-off atti¬
worried. Behind-the-scenes

But privately, they are greatly
;

^

-

' Continued on page 29

WESTCOAST TRANSMISSION CORPORATION

a

We have

sky

as

prepared a brief report which re¬
company's relationship with the
Pipeline Corporation. A
map of the market and supply areas in the
report shows the important advantages Westeoa^t Transmission holds in the North West¬
ern United States Fuel market. A
copy of this

views

well

freedom.

We
~

this

Pacific

Northwest

review

is available

on

request.

not

prepared as
particularly from the

point of view of our economy, to
assume the
responsibilities thrust
upon us, our American enterprise
degenerated
into a
devastating

E

they

defense-vital steel

warehouses.

of 1932.
The United States emerged from
World War I as a World Power.

E

.

to

economy.

from

individual

begun

There is not much help in either direction,

intent upon the destruction of the

their

already

dem¬

resistance

descend

has

strike

looked like comfortable inventories

strike

steel

control

is

|

as

the

what

of productive effort
prerequisite.

them /has

that

are

for

means

their

is

Hard pressed consumers are bombarding operating
mills and warehouses with pleas for help. They are looking into

history are the
the ; individual.
may be their de¬

buzzards

E

'

telling

'

onstrated by the fact that not one

Toronto, Canada

Members: Toronto Stock Exchange

by

week is out.

to all:

common

(2)

a

2

illusion

beginning to wonder where these

are

hitting construction, freight
industries/ Now bar and rod

E ing the depression

Burns Bros. & Company, Ltd.

-Toronto, Canada

this

to

bushes

had just such an experience dur¬

2

contributed

foreign steel, too, this trade
of

by

type,

Whenever

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

so-called

from

statements

hiding, this trade weekly declares.

are

society is lowered, the ideological

|

at

dependent
-

has

(1) They are parasitical as dis¬
tinguished from productive.

for

Burns Bros. & Denton, inc.

are
jolting
complacency.

Shortages of plate and structurals, apparent before the

walkout,

Faults of "Isms"

No matter what

of

(

has

leader,

fact

economy.

individual- has

the

"isms"

Their

Copies available

amazed

are

Some steel consumers

inventories

individual

Progress
the

when

The

is

E

observers

union

steel

a

freed himself from the yoke of the

are

E

Close

the history of

the

between
state.

when

made

||
§
-

deadlock

experts that the strike will not hurt the economy. Dave McDonald,

the world, we find a record of the

J

«

strike

steel

of their pre-strike

tory.

great

a

As

individual
faltered under its burden.

A comprehensive report on this company

the

out

By end of this week, production losses will approach 7,000,000
ingot tons, with no sign of an early settlement; states "The Iron
Age," national metal working weekly, this week.
*
: fl

philosophy of living

a

state, and retrogression has taken

E

of

government

for

public, that fine balance between

CORPORATION, LIMITED

overtones

which provided a firm foundation

were

DOMINION STEEL AND COAL

compares

year.

strikers not to worry about lost wages; that they, would have been
laid off later anyway because there was too much steel in inven¬

spirit and

ple.

|
|

decline, the department
with 1,080,700 during the com¬

hiring was a major factor in the decline, the depart¬

industry and

not

1,166,100 to 1,091,300

straight weekly

ment said.

believe

did

fourth

The total

out.

/ Seasonal

communal

^llllllllllllllllllllllllllKllllllflllllllllllKlhlllllllllltlllllllllllllllllttlllllllllllllll^" place

E

the

was

property. Also the
ent concept. It may be said that tragedy of the first Virginia col¬
the township was organized be¬ ony,
which was founded upon
fore the county, the county be¬ communism, was
deeply engraved
fore' the
state, the state before in their minds.
the Union.
Beginning with the
Thus,-we have from New Eng¬

in

declined by 74,800 to 1,091,300 during

30, the department added.- Figures cover
under state unemployment insurance'laws and

dip in insured unemployment from

pointed

recognized the
which he held it.

Our forefathers

_

In America there was a differ¬

1.

June

parable week last

everyone

principle

ended

eligible

workers

de¬

to

Another

claims, the report revealed.

credits became available July

the unemployment insurance program for Federal civilian workers.

Everyone

own

week

workers

quent in Europe, were unheard of
in New England.
Paupers were
rare

new

Insured unemployment

fre¬

so

apparel, textiles and food processing also

filing by workers who became eligible when the new

was

quarter's wage
the

are

secondary

benefits.

factor

rights,

were

resulted from

New

contributed to increased

from the men and
Colonial days, com¬

of

in

Seasonal layoffs in

sprang

against

the increase

of

ance

generative forces

plaints

Orleans,

1956.

good

,

kind

women

government closest to the peo¬
Thus, authority and restraint
bounded by the people. It
was
they who achieved, in the
the
laws which they promulgated in
,the :the first era of the American Re¬

of morality. But what most
especially distinguished t^em was
the aim of their undertaking.

The

Because of the

By

tions,^ and many of them] were
known in Europe for their talents
people, each step of government
and accomplishments.
//;#//;r'. was given only such powers as
They brought with them a high were relinquished by the elements
sense

essential.

laws leads man to civil freedom."

Europe
was

not eligible for benefits.
effects of the steel
York, Pennsylvania and New Jersey, it continued,
but the main influence was filing by workers at plants closed for
vacation. Claims normally rise the first week of July as workers
ineligible for vacation pay file to determine their rights to insur¬

Strikers, the department noted,

religion is the road to knowledge,
and the observance of the divine

democracy more per¬

fect than any
dreamed of.

places

they sought can be found in the
preamble
of
the
Massachusetts
School Law of 1647.
Its essence
is in these words:. "In America

men

fouiided

launched

good democracy

a

are

commenced in the superior

established

who

the shores

Puritans'

education

strike

Perfect

More

a

public

to

Part

organized society by

an

this action
who

should like to make

of

than

key¬

the clearest light upon their origi¬

scarcely
religious

passing the Mayflower Pact.

Kyes

«i.

of such action. Once these

have

the

was

to create

may,

conse-

points

was

was a

The immediate

nal concept that in order to have

Democracy

considered

the

a

doctrine.

princi¬
well

quences

it

knowledge

on

attention the New England fathers

paid

merely

not

our

| as

what

be

political

a

these

from

as

less

parture

ples,

In fact,

theories.

us

the

examine

founded

religious doctrine. It corresponded
in many respects with the purest
of
democratic
and
republican

h i lo sophy
upon
which

p

was

was

.

The condition of employment in the week ended July 7, ac¬
cording to the United States Department of Labor showed that
initial claims for unemployment insurance benefits rose to 316,700
from 215,400 the week before. The agency attributed little of the
increase in claims by newly laid-off workers to the steel strike.

England forebearers
that
judgment

recognized

stone of freedom.

umph of an idea.
Puritanism

New

Our

also

of exile their object was

with the basic

inventories for 33

adequate steel

days, but warehouse supplies of structural shapes and steel plates
were limited.
/
' <
:
■
-

facing the inevitable sufferings
the tri¬

in

military security rests.
Let us begin

*

vacations considerably reduced the

Property Rights Were Defended

the comforts of
intellectual: and

which

".

,

,,

the week.

rights of others.

They were not obliged to leave
their country; the call that sum¬

the similar week

below that of

sharply

output of coal, automobiles, paperboard and food products during

refrained

he

It
.

Plant

cising their rights of sovereignty.
Every citizen and every class was
dedicated to the sovereignty of
the people above all else, includ¬
ing their own interests., 'Because
citizen

whole occurred in the period ended on Wednesday of

a

.

They knew

by the people aggressively exer¬

every

as

week.

in 1955.

u*av ^iveuoiM js nounsnea oniy

and state

over-all industrial production for the

noticeable decline in

,

like

V

Failures

J
A

placed upon religion.

(4) the entry of Socialism during the last de¬
pression, and the faith developed in the "golden goose" said
to reside in the U. S. Treasury; and (5) extent of economic
illiteracy by teachers and students.
should

Index

Price

Auto Production

Business

culture.

.

To enjoy and preserve it, they
knew it required solid character.
That is why such emphasis was

governments;

I

Trade

Commodity Price Index
/'

and

shirking

the responsibility of their

Production

Electric Output

Carloadings

though

even

Steel

•

The

a

Then, too, they truly understood

our govern¬

from the people and their local

away

elements

responsibility

freedom,

of

fruits

Gen-

j eral Motors Vice-President called for greatly increased efforts
to surpass "the technological offensive that Soviet Russia and
Communism are waging against America and the free world."
Mr. Kyet makes 10 recommendations on building an even
greater nation than we now possess and offers such observa¬
tions asJv(i) the two-dimensional "technological challenge
of our times," to ad ranee living standards and to meet suc¬
cessfully Russia's technological offensive; (2) increasing
trained number of engineers

and
to

beyond

they were conscious that it was
a
human temptation to seek the

.

;

-

knew

the

that

doubt

straint

essential in¬

an

democratic system.

a

ancestors

Our

vital

R.0.A.Y Distinguished Service Citation,

In receiving the

gredient of

N

ROGER M. KYES*

By

"Vice-President, General Motors

obligations of in¬

rights and

dividuals which is

Our financial system

Continued

on

page

22

WISENER
•

73

King Street West

Toronto, Canada

AND

COMPANY

LIMITED

Volume 184

Number 5552... The Commercial and Financial Chronicle

(277)

Yorkjph the D. L. 8c W.; Suffem

Hadson atid Manhattan

and New York over the

Rahway and New York
Penn.

•

•

Railroad—Sick Transit

By A. WILFRED MAY
THAT 28

BILLION DOLLAR

QUESTION—

much of the public discussion of our consumer finance

so

article, "INSTALMENT CREDIT—the $28 Billion Questionby
Sianey E. Rolfe, in the July-August "Harvard Business Review,"
is
epochal.
With complete reorientation of
■"•*:'. '> > ■ ►'
i approach, Dr.
Rolfe takes a new and>thor- ;
nughly objective look [at "an issue .which
[ divides economists,,frightens financial analysts,
i challenges
consumer motivation experts, and
'
-every - businessman1 deeply.": Quite i;
newly ; affiliated-[with a leading instabnent
:
.'finance company <C. I. T. Financial Corpora- *;
t? tion) as economist, Dr. Rolfe rather wears his s
»:

v

cap of holder of-a Ph. D., former associate
of the Economic Stabilization: Administration,

and. lecturer

in

economics

Columbia.

-

v.
:

[

little

Princeton

so,

that's
/

Manhattan

RailroadComhas

It

papy.;

^" terest-jDn

'•*

first

its

and

re- >-■

funding-mortgage'bonds;-it

.

•[

>
-

•has passed-the:

and

8732.50

on

the

back

In fact such

plemented

arrears

air

each

of

its

on

[' ad j ustm

-

t '

over

ship railway bonds and shares a
ago you rhaV, however,
scratch your head and say, "May¬
[years; it has
passed its pre-;
A. Wiltred um;
be this one can pull out of the
discussion.
In so doing he aptly makes an
O.
4
Cobleigh
ferred d i v i
red, too." Which leads us up to
analogy between t^e practitioners of consumer
i
d
e n d
for 23
the conjecture or reverie phase of
credit and Kafaka's character in The Trial, who faces specifications
years; and years have passed since
this piece. From here on blame
and charges that, are always » shifting, usually for crimes to be
e n

bonds

;

f

•

level

of

in

future.

the

financing

Of

which color

those Unstated beliefs, assumptions, and preferences

our

questions and interpretations

and indeed in every area

in consumer credit

of economic thought."

Well now, if

this line is in such
shape, what's to be done?
its railway tunnel under
the <• Hudson
be
abandoned, and
given over to growing mushrooms
or aging cheeses?
(Caves and tuna

Facts and

Reminding

Biases—Pro and

that from

us

the

Con

body

same

of

statistics

about

divergent conclusions,
the author logically concludes that it is not the statistics themselves but the interpretation of the statistics which elicits the
divergent opinions. Such difference he ascribes mainly to biases
stemming from

-

nels

for
..

The

Judaic

bias

against

Je'rsey
slow

of usury;

debt

itself

is

traced

back

to

the

ancient

nor

forbade

[

a

our

time

own

may

well

century, when low-level consumption and high-level savings

'

[

•

-

of general

Let's take

[[•■-[
has

personality.* It is both

Stit/romnanvyflnrt
The

real

a

and

30

anti-credit bias is cited, embody->

estate

Church

50

part

Street

outstandings are too high, but with no ready adswer
questton ofitowhigh.-high'Us.:; ;. ^ V;./

is

New

York, which have been doing progressively better since the war:

.

emphasizes that it is usually someone* else's debt•
that ragkes orie anxious; the puritanical anxiety ; fodusing. on i
the ability of the debtor to run his life properly; with mistrust
of the individual consumer's judgment about his consumption and *
credit use.
In the psychiatric realm, Dr. Rolfe reasons that be- /
cause it could be deemed patronizing to express such biases overtly, '
they are deftly rationalized in terms of national economic health, or:
one of its sectors as automobile or durable goods output, or the !
aggregate level of consumer debt.
■
- [
To the author's great credit, he also lists pro-credit biases;
as by
tliose preoccupied with short-run sales, with "keeping the
wheels turning," and with complacency about the future quality
of credit based on past performance.
/-* ■',[- [. •;/■

j [

~v.

Rolfe

Dr.

,

Factual Conclusionsv

Cutting through the various

^

pites the

prejudices

;[ ■.".
to

'

the factual

figures showing that during the

data,

$20 million.

^frf9
;

five-year

So

_tru?h.for the real

What'about

estate

T,vn

*

ables outstanding, and over the 20-year span of depressions, war,
and

prosperity, have never reached the 1% level; and that even ;
the 1929 boom-and-depression entailed credit losses and related»
expenses on the part of the major units aggregating less than
% of 1%. Discussing the consumer's debt behavior, he cites findings of the Survey Research Center of the University of Michigan,
as
<\n

as

supported by the Federal Reserve Board, showing that
K7 07

57%

A

nn i-i

4rr\

*v\

i 1 i

/\r«

Kntf/%

of American families have

consumer

debt is

concentrated

nn

no

among

«4

as many
1

4-

4

debt at all, that
the middle-income family

consumer

passengers;

last

...

_

It

stands in




Continued on, page

30

for

be

to

it, what

run

you

at

did

John C. Parker Opens

for

Dennis Street.

«j"

,

way branch of the Long Island.
it

over

.under

a

-

rubii

(Special to The Financial

•+

such

40

[T

.[

/f ir :

•

With Columbia Sees, of Fla.

^
^
new ^ F~
s^a^e Transit Authority; operate it.
£
SI y-*

'::

NATCHITOCHES, La.—JohnC.
Parker is engaging in a securities
business from offices at 126 St.

a

Sw
Take

the

MIAMIy

Convenience ^n/heces?

Fla.

—

Chbonicl*>

Abe Aranoff,

Gerald
A.
joined the staff
of Columbia Securities Co. lncc of

Jack

c°^ven^®hco and neces-

-

J.

Hart

McDonnell

There s nothing new- abou
a proposal. There's no roe-

and

have

son,in: the world-, why a-private Florida, 3898VBiscayne ©oqleVard.
corporation -should, perennially

subsidize-a

section-of the public,

[

King Merritt

%% (Special

to The

Finanwal-Chbonicle)

M-.
nnJlr ® ratin„ Wuthorover by a Public operating author-

.MIAMI, Fla—Lewis F. Harder
and John W. Ronnloff, Jr. have
to' become connected with King Mer-

ity which will deliver bonds
H & :M in payment for tunnel/
r0mng
stocks,
fixed
property,
trackage
franchises, - etc.:
The

;

ritt & Co,. Inc., Chamber
Building.,,
■

of Com¬

merce

,

.

the

it

yet

I 1S

around $6

books

could

be

not

re-

or

cars

'

S
and

midget

strangely

items,
our

are

So
of

Each

and

There is

•

*30 an^

&

20L

But this p1 an awaits the re-

,

H

M

wDuld

a

HH?S05
mmal 5°T 34thiStT) on. the Central
RR< of N j . Morristown and New

rocket-

&vy. '

Fults of

B.

Fla.—Rob¬

Stowman is now

Professional Boulevard,

t^e.part of the
service from Jersey City to New'

FT. LAUDERDALE,

ert

vintage

operates
buv

[

with

buy 50 new cars for $5 million.
(The
Pennsylvania
RR.,
which

.

.

Roger

G.

connected
&

Johnson

j-'

ESTABLISHED 1894 C

STATE AND MUNICIPAL

BONDS

CORPORATE BONDS

.

LOCAL STOCKS

pleading bv the Trustee

Bankruptcy for g^antmg of tax

York and New

authorities.

There you have the

general Pic¬
the capitalization
which follows: 8942,000 first mort¬
gage 4^ s due 1957,. $28.6 million
of 1st and ref. 5s due also 1957
ture,

all

but

(market, 45); $16.8 in

^djustmenf:

:

Johnson ,!

plan afoot

a

-

(Special to The Financial Chronicle) * ~

,

t?a«seif* Rarit.ad''

to

jointly

[*

place in

of

out

streamlined

minded age.

-

break

week-day morning and evening,
run some through trains between

nre«?ent

ger

30 miles, maybe it Bank Building.
even —or
do even
why not negotiate a
With Roger
trackage deals with the:

gengers- 20

couId

ctfrailroads in New Jersey.

ocn"v

*

behavior, Dr. Rolfe again ex¬
hibits unique intellectual honesty in adding the reservation t^at
so little is really known
about the consumer in our consumption
consumer

do

placed today for $35 million. Btill, better.
it is not a very functional tunnel. Series

Jersey

Blind Spots

the treatment of

around

„,

reductions by New

In

loss,

requires

be

may

V

answer.

amoUnt of the bonds (tax exempt,
1956, net loss (railway deficitr Gf course)
delivered ' would r of [ V Walter Desser Adds
combined! with real estate in- COurse be subject to negotiation,
(Special to The Financial Chronicle) »
come) was $655,865 versus a loss
Another thought, and this as a ■[;• FT. LAUDERDALE, Fla. — Jo¬
of $437,595 in.»the similar .1955 practical suggestion to the new seph V.Miller and Leroy D. Roland
period^ so no current financial operators. The main trouble with
neriodt
so no current financial
^a,,kia
progress is visible. The tunnel is H & M is ihat it has too short have joined -the staff of Walter
theoretically a worthwhile thing, hauls. If it could only carry pas- Desser & Co., Broward National

possess a backing of a«?pts. ineh'dir.**
the debt oustanding, saved for a "rainy

of

it

hauls

H & M, and you

can't abandon it." O. K. we say,
"if this is so vital a public service
that

longer

and

'^"Jpnv
For the first. five months
of

in

excess

no

year

group, that they refrain from "buying sprees" and, to the contrary,

ji«ni-' assets, in
day."

.

1945 HXR carried 73; million

4n

..

companies have been less than Yz of 1% of receiv¬

e r?uroaa

' .'

•

railroad

the

t a 0W

iAlp

million,
,

period from 1950 through July 1955, the percentage of accounts
delinquentTiri the highest category—indirect loans for automobile ♦
purchases—has never exceeded :2.20%" and has been as low as j'
1.24%;. that automobile debt financed by direct loans from banks
has the1 even better delinquency record ranging from a high of
1.48% to a low[of 0,75% of accounts outstanding; that losses of sales finance

on

modernization,

reductions,

Tax

;

The author

v..

muters depend

far brighter: future

a

potential earner than the new
Rockaway
subway
division in
New York, or the densely traf¬
ficked (snow in winter and sun¬
shine in summer) main line of
the New York, Ontario and West¬
ern! There is some residual value
in almost everything.
Even a
stopped clock is right twice a day![
Perhaps a way can be found to
make H $: M stop; losing money.
as a

two separate corporations, the rep.
estate one to keep, and the rail

real

a

*a commuter?

ing the perennial fear that credit will create new problems in
and provide annual operating inthe.future;..also the bias of the "Happy Few": who fear otherV
men's ability to administer, their lives-properly;: and who'see ;
mwW
foolishness in their fellow-man's debts; and the "bias of heights,"-.
ft,I„?.Ji'Pif.,,

i that-credit

This line has

it. The railroad is a money-losing
turkey so we'll lay it off. We'll
say to the I.C.C. and other public
authorities, "We simply can't aff°rd to run this roao. We re >.
ing to abandon it!" (We'll creaf"

a

good—two big office buildings at

„

The prevalence

trips
Is

bus
tunnels?

v'/

railroad.

were

for growth of capital, whereas consumption was fastened
indulgence. 1
>
4 >

with the sin of

fog-bound

Manhattan

and

Hudson
lit

be

1 oldover from very rational beliefs held since the late eighteenth V

necessary

that!)

or

look-. '

More in the economic area, he maintains-

U that the anti-consumer debt bias in

ferries,
vehicular

there/any solution?

to the

lender be."

a

sometimes

and

railway
through

lending; to the Catholic-medieval
Elizabethan drama with its pound of
flesh; and to the recurrent Polonius-like strictures "neither a bor¬
law,

concepts
rower

which

sent of

,

.

for

the meadows to its main. line.

solution to the

(this would > require con- [way, one to lose or lay off.) Ther
I.C.C.), leaving a horde of comes the howl, "This is a public
commuters [ dependent on service. Thousands of daily corn-

tinued

unconsciously and deeply held attitudes; and to

or lack of clarity with respect to social objectives—
is, how credit fits into the concept of what is good and bad

society.

wonderful

are

Should the whole line be discon-

differences
ti at

sorry

Should

credit reasonable men have drawn

consumer

the

too

[*^e line showed a semblance of only the author; for this is his
[ profit.-So you 11 pardon we trust, pipe dream projection,
v the opening quip,
^lck Transit,
Let us assume we view this
since it merely describes a series whole deal icily. The real estate
is
good, and it pays; so we'll keep
^ sad financial, facts.

feels

consciousness, he say's, "There is constant need to bring

to the surface

on

If

,

.

popularly raging battle about
is being fought b<m*ath the

our

which" he

coaches

the foregoing seems to you
imaginative and fanciful a}
problems besetting
H & M, then toss the whole thing
off as an economic pipe dream.
But if you pick it up point by
point there is nothing especially
illogical
being
advanced
here.

[decade

o r

ira

committed

conditioned

-

stream-lined

new

'

\ interest

r,;V".
^:i[r' •
v.*<
;• -s' •- As
a matter of fact,
Dr.. Rolfe devotes vi
major consideration to the impact of bias and [
other emotional facets on the question under ^

consumer

arrangement, im¬

an

by

thus,

or

-

-

elimina¬

,

[ passed the in-

\v;

-

Well

happened
.to.Hudson and

of

[

interest

(with

5s

Erie; and
over the

or

H. & M., migkt woo thousands Of
$1,000 bond) selling at 25; 52,429
commpters hack from bus
and
exactly. what shares of $5 preferred selling at
private car travel; and create
9Yz, and 399,954 of common quoted
some
significant earning , power
Vat 2Yz-. Just where the value lies
for
this [totter,ing
transit
line.
in ..these equities under present
Switching
tracks on to .the Penn
conditions is hard
to calculate.
are ' already
in existence; teed
But these are the appraisal in
the- market place of H Se M: Mul¬ jitms into the Erie or ;D. L.: & W.
would' he easy;:,and Central RR.
tiply the prices out, and total them
(which has only a ferry line to
vup,. and you'll have to add millions
.in an asset to the balance sheet, N. Y. now) could he connected to H & M by a spur, [not a mile
[.called "optimism/', /■;.[V.;-.-[.■ ;v■*j [;[
and a half long, running; from
When you
look back, at the
just west of Jersey City, south
sorry plight of certain receiver-

means

has

income

in Latin

translation,

transit"

passes.
V

■

at

in the

"sic

i

affects

..

The- title for today's piece loses

,

reduction

Pehn),
the
running
of fewer
money-losing
commuter
trains,
and the receipts from trackage
rentals by each of the line-haul
roads, would be most welcome.

.

conjecture about its possible reorganization.

:

situation continuingly reflecting special pleading and other bias, an

Enterprise Economist

;

A review of this troubled transporter of
commuters, with some.

.■

FROM THE PSYCHOLOGICAL APPROACHES
With

v

The

tion of costly ferry service,In thef
case
of each
road
(except the

^

By IRA U. COBLEIOH

;,,[,

5

ATLANTA I, GEORGIA

RHODES-HAVERTY BLDG.
WALNUT 0316

J

-

LONG DISTANCE

421

Co.;

The Commercial and Financial Chronicle..
6

.

(278)

back; but it still is

ResponsibiKty in
Today's Unprecedented Economy
The Banker's
By

WAGEMAN*

DON II.

Chairman of the Executive

Committee, Seattle-First

Bank, Seattle,

National

Washington

overlook the old-fashioned idea of sibility is to support the day-to¬
day short term credit requirements

loan policy

a

Thursday, July 19, 1956

which doesn't need to ;char)ge-^-in -a secondary reserve to take care

of

of the outstanding loan commitments to our customers which are
not now in use and the unforeseen

fact,. doesn't change," Conditions
do change.The financial, management, or* personal- conditions
of the borrower change, or the
trend of his sector of the industry
changes, or the economic climate
changes.
What was "sound" a

credit needs of business

cline
our

in

area.

deposits

in

bank

our

car;

in

our

let's be

sure

we

These must

After this

the de¬

or

We all carry a spare

our

one

few months ago may not be sound

of

much, if
vide

or

industry, and indi¬

commerce,

viduals.

be met first.-

then decide how

we can

v

have left to pro"investment'" type
of

any, we

the

-

credit. By this I mean

longer term
loans for capital or fixed assets,
expansion of facilities, real estate
mortgages, and unproductive loans
of all types. Loans for speculative f

tire

carry

business.

"usual" : and
/:Economic Cycles
not be
I am not one of those who be¬ purposes,
"usual" and "normal" today.
of course, come way ?
In
lieve that the business or econom¬ down toward the bottom of the
other
worlds,: a correct
answer
ic cycle has been eliminated from list no matter how well secured ;
may be "yes" or "no" to the same
question, but according to changed pur economy. I recognize the so- they may be.
called stabilizers which have been
would conflict with a sound area or national economy. Mr.
Right now, the demand for cred¬
or. changing circumstances.
built into our'economy in recent it to finance expansion, acquisi¬
Wageman discusses such loan volume guidance criteria as
Loan Volume
years
and admit that we have tions, buildings, heavy equipment,
ratio to deposits, and capital ratio to risk assets;
more knowledge and better weap¬
and other capital purposes is very
We hear a great deal about the
"loanable funds," and compares the usefulness of secondary
ons to combat economic instabil¬
great. The supply of funds avail¬
very high level of loans which
from
investment
sources ;
reserves with a spare tire.
ity than ever before, but I am not able
Advises bankers not to
are being carried by the banking
convinced that we have reached which usually provide such cred¬
our inventory," consisting of money merchandise, and to
industry, and they are high — the
Utopia of an economy that will its cannot meet the demands.
selective in order to maintain high business level and the
higher than ever before—so the witness
Where
is
the
year after year of new allmoney
coming
question naturally arises, "How time records of
delicate balance of our economy.
activity without from? Applicants are turning to
many loans should the banking some
adjustments from time to the banks. We, then, must deter¬
:
First, let us take a good look responsibility, and it is, because * industry extend?" Well, the obvi¬ time. Even though these adjust¬ mine how far we can
go without
at "where we are" and "how we if we, collectively, fail in this, ous answer is "Enough to support
ments shall be minimized, yet any impairing our ability to service
a
sound economy and no more!"
got this way." Let's go back to then success in our other responsi¬
such declines in business will re¬ properly
the usual and normal
1945 at the end of World War II bilities will be shortlived and less But that makes the answer too sult in errors of
judgment, invol¬ needs of business.
simple. How many can we carry?
when, as a re¬ effective than it should be.
untary
accumulation
of
inven¬
Proper selectivity in the grant¬
Of one thing I am sure,"We
sult
of war
tories of both raw materials and ing of credits today is of prime
Loan Policies
can't carry
expediency,
enough to provide finished goods, as well as a slow¬
importance. Of course, quality se¬
What kind of a loan policy can everyone
deficit spend¬
with
everything
he down in the collection of receivelectivity is always necessary; but
houses, automobiles, ap¬ ables at the manufacturing, whole¬
ing, currency we adopt that will support our wants
today selectivity as to use of pro¬
devaluation, changing economy and maintain pliances,- vacations,
etc.,
with sale, and retail levels. When this ceeds is of
equal importance. Our
Well, the; nothing down and forever to pay."
and other eco¬ this delicate balance?
occurs, our
customers will need inventory must be "earmarked" or
nomic malad- answer is simple—but not easy. Again, I remind you, the collec¬
more credit to tide them over the
"classified" and distributed ac¬
j u stments There are certain loans that should tive result is the cumulative total difficult period. Many of them will
cordingly.
'
there was a be made and others that should
of
individual
decisions,
so
we neecj assistance who have not been
"Banking is more than just fend¬
very large not, and there are many which are must
bring this question right on our books as borrowers for ing money and getting it back"—
credit
base neither "black" or "white." Deci¬ down
to
ourselves.
How, many years
we
must
maintain our- there is a greater responsibility to
and
reservoir sions are difficult and at times loans can. yoiiri batik' carry? '
^
" selves in a position to provide the the economy of our community:
It is easy to say,
of
I realize; that many of you have;
money
in embarrassing.
additional credit they will then and the nation. Credit practices
the
banking "We must not make this or that not yet attained a ^
a require.
•
must
be adjusted from -time to
system which certain loan because its use is in¬ policy-making level, so therefore, We might compare ourselves to time so that a basic unchanging
Oon H. Wageman
was not being
flationary"; but it takes real cour¬ such a question is somewhat ada- 'a merchant. We have an
inventory loan
policy is
adequately and
used by com¬ age to say that kind of a "no" to a
demic to you. Nevertheless, it is 0f
merchandise—money. We have properly applied to changed or
valued
customer;
and
it a question which is always before our regular customers whose needs
merce, industry, and individuals. very
changing economic conditions. ^
We have come a long way since takes intestinal fortitude to sacri¬ management; and you bankers of we must
supply. We have only a
fice the profit which we would tomorrow:
then!
\.
•
.»
will need : to draw: oh'" certain amount; of merchandised
•'
make from an otherwise accept¬
the lessons of today just as we ,we must not over-sell-our invenOur
Gross
National
Product
able loan. Nevertheless, what we, of
today are drawing on the ex- tory.
(which is the total of goods sold
and services rendered) has a little as bankers, of the nation do col¬
periences
of
As an example of what can hap¬
yesterday, making
less
than; doubled, and private lectively is only a reflection, and allowances as best we can for pen, let us take a look at the real
an
accumulation, of what we do changed circumstances. Therefore, estate mortgage money market. I
debt has considerably more than
Sharp increase in share volume
doubled, since 1945. As a result, individually; therefore, our seem¬ it is ' not> inappropriate- for you don't need to tell you folks how
5
by those under age 40; greater
ingly
minor day-to-day decisions to
be
we have reached a very high level
observing
and
studying tight that situation is. What hap¬
use of the Exchange by women;,;
of business activity fh this coun¬ are important; and togethef we do policies and practices being advo
pened? When the rate of savings
What

today.

proffers over and above the bankers tradiviional responsibility to depositors and stockholders a greater
economic responsibility to support a sound economy and to
refrain from making "safe" and "money good" loans when it
Seattle banker

"normal"

a

was

ago may

year

'

loan
defines

"oversell
be

<=

<

—

.

.

.

.

"

.

NYSE Slody

Analyzes

Stock Transactions'

?

try.

exercise

We have put" to work the idle

funds which

now

find the banks in

a

influence

soundness

state and the nation.

system in 1945. | The use of these
funds, plus those created by their
use, has increased loan totals until
we

decided

a

economic

the

in the banking

were

are

all in this

Let

not

of

on

our

We certainly

*

together.
dwell

overly long
talking about loans which should

very

us

fight riioney position—every dollar not be made. Let us think about
a rapid velocity. those that should be granted.
In
The rate of growth or expansion order to support the very high
of our economy has been more level which business has attained
rapid then the growth: of the and to maintain the delicate bal¬
money supply—in other words, we ance of our economy, it is just, as
have been using up our excess. It important
to make those loans
would, therefore, seem reasonable Which are needed by our solvent

is working and at

to expect a leveling off period—a

customers in the pursuit of .their

slackening in the pace of our
pansion—a consolidation. of
position.
•

ex¬

usual and normal business

our

to

This

flation,

unprecedented

activity is

anced

as

high level
delicately bal¬

very

has

been

evidenced

from

as

making

it is

those

which add fuel to the fires of in¬

.

of

refrain

or

those

which

use

balance be maintained,
is where our

remain

re¬

that

is

and

available

not

responsibility pends

lies.

■:

more

than just

getting
have

a

it

for

day-to-day

duty to
to

,

these

on

responsibility,

know, is

"vacillating loan policy, and noth¬

operate

commonly

ing hurts

the bank

is

accepted

loan policy."

our

eco-r

nomic responsibility to use the
funds entrusted to us in a manner
Which will amply support a
sound
economy and, equally, at the same
time (and at the possible
sacrifice
of

earnings) to refrain,from mak¬
ing certain "safe" and "money
good" loans when the purpose for
which the loan is to be used con¬
flicts with the interest of a sound
economy for our own area, or for
the nation. I say this is a
greater
•An

address

Credits

C

by Mr. Wageman before
num.

Convention

tute of

of

e

the

a.

...

American

Banking, Dallas, Tex.




bank's customer rela¬

tions

more

/,

So, back to our question, "How
loans can your bank carry?"
The earlier practice was to re¬
late loans to deposits and to say
bank

was

40%

loaned

loans amounted to 40%

bonds

or

.

Insti¬

than

a

No, I

hot-and-cold
say,

that

such

an

was

embarrassing

extent

I

am

this isn't

they

were

ed.

of its de¬

loans

and

maining

the

tor

gov¬

investments.

of

was

that

perfectly in

omy;

conservative

conducive

therefore,

to

a

the

sound

risk

The

assets

spare

re-

related to capital funds, resuiting in what is called the "ratio
of capital to risk assets."
\
are

hot-and-cold

the

loan

policy,

even

tire

was

_

~

A

,.

in a few words: "To sup¬
ply all of the sound credit needed
by our solvent customers in con¬
nection with their usual and nor¬
business requirements." You
can tear this to
pieces, front and

mal

volume

business
cuted

^

use

the primary premise that not
all of our deposits are "loanable

on

funds." I would suggest that "loanable funds" be determined in this

•

brisk demand for credit. We will
probably have the opportunity to
make all the loans we want and
maybe more than those for which

manner;

fixed

remainder
loanable

late

our

able

choose

to

"net

call

Now, let us"

re¬

"loan total" to "net loan¬

funds"

more

our

I

funds."

we

loans

and

can

see

how

comfortably

to increase.

Let

t i

v

i t.y in

smaller towns
and
->

cities ' >:
The Study,

sixth in

•

a con¬

G. Keith Funston

tinuing series,
reoresents

a

■

photograph
of
the market
on
/March 14 and 21 — some 86,000
transactions
on
the Stock .Ex¬
change were analyzed in detail.
"There appear to be two funda¬
mental reasons," Mr. Funston de¬
clared, "for the substantial in¬

tionary pressures.
Our

problem resolves itself large¬
ly into the question of which type
of loans to make and which to de¬

allow

cline. I'm speaking now as a com-'
mercial banker. Our first respon¬

hot

the

investment
a c

much

us

on

and
signs of wider

intended, • but -we are now
talking about the supply of money
available. For this purpose I like
to

of '

exe¬

women,

^

; What does this all add up to? It
is being freely predicted that during the.coming months loans will
maintain their present high levels
another formula which»rests and there will continue- to be a

dis¬

Exchange for ■;
people under
40, »and for.

rittr

- ^

latest

Study

sharp

a

increase in the '

oversold

something i~=s tVm

Cn.

Exchange's

•

.

President of tne
Exchange, said

Transaction

posed

with

synonymous

Stock

the

10,

Public

demand out-

seiectiviiy.

York

July

sufficient to take care of the situation. As commercial bankers, let's
not oversell our inventory. ' /; •

valuable and

are

Keith Funston,
NeW

good measuring sticks for thepur-pose

transactions

trading transactions."

than

Ex¬

Stock

York

New

the

econ¬

uninformed

for you

-

borrowed
tomorrow's market, and the

was

a

change. Study is said to refute
"mistaken notion that margin

■*.

fending practices in
field, generally, were

less

somewhat
were

then

These methods

by

Whai^aused this shortage of

the mortgage

loan secured by, such

total

it

a">d

holding' of government action); but one fac¬

and

small

continuing study-series conducted

order and should have been grant¬

be deducted from total

may

sure

them,

to

■;

ity, is presented in the sixth of

overcommitted;
and
forced to cut back to

cline loans that

when its

guaranty of certain types
of loans,
it became a more ac¬
cepted plan to describe an invest¬

in,

or

were

wider

of

town and cities investment activ-

over-

of them found it necessary to de¬

ernment

ment

loaned

themselves

evidence

and

-

increaseS&Veral things (including

posits. Later, with the
public and banking
government

found

they

many

a

fenders

Take the aggregate of we have "loanable funds." Thereinvestments, till cash, legal fore, we must be selective. It is
might1
reserves,
necessary
balances
in most important that we maintain
think so arid, no doubt,
do; but, as correspondent
banks, and invest- ourselves in a position to grant
the old saying
goes, "Things are ment in bonds
pledged to secure those loans which need to be made
not quite what
they seem to be." public
funds; and deduct this sum to support our present high level
There is an unchanging loan
from total assets. I choose to call of business and maintain the delipolicy which will operate within the result
by the name of "gross cate balance of our economy. It is
the framework of this greater eco¬
loanable funds." From this should equally important that we decline
nomic responsibility. I think most
be again deducted such an amount to make those that freeze our de¬
banks, either consciously or un¬ as each bank determines is
appro¬ posits in long term unproductive
consciously, adhere to it; and I priate for an investment account loans or those which are inconsist¬
think they should. Let me state it
and/or a secondary reserve. The ent with efforts to control infla¬

though

That

a

over and

a

*HiaI

will

depositors and

even

fae

you

to

responsibilities, there is another,
greater.

de¬

sometimes say "no" to an applica¬
tion when possibly you said "yes"

money and

course,

safely and profitably; but
above

It

a similar one a year
ago. But I
hear somebody say that this is a

Of

our

science.

we

lending

back.

stockholders

well

you

exact

an

nomic

as

dropped off and the supply of new
declined, many mortgage

; funds

for I assets to be classed as a "risklessrran the supply — they
asset"; and for analysis purposes their .inventory, they

human judgment—your
judgment. If you accept this eco¬

Bankers' Economic
Responsibility

Banking,

interesting and stimulating era through which bank¬
ing and our economy are passing
today.

fixed investment funds that should

cently by its sensitivity to some business.
Where to draw the line?
That's
relatively minor happenings. It is
extremely important that this del¬ the $64-billion question. Banking
icate

cated and used to meet the needs
of this very

in

crease

done

the

volume of

business

people under 40 years
old. Younger people are evidently
taking a greater interest in per¬
sonal financial planning.
In ad¬
dition, surveys by the Exchange,
indicate that younger people ard;
by

more
disposed to in-?
stock
ownership in their

becoming
elude

plans for the future."
The

Exchange's

President

pointed out that share volume fe

people under 40

on

the two day!

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

studied jumped to 16% of all vol¬

2.8,

ume
by
previous

Boston to 2.8 from 3.2,

public

individuals.

Studies

the

In

percentage

for this group stayed close to 13%
with no trend apparent. The num¬

shares bought and sold by
the under 40 group was projected

1,343,000

>

siderably larger than in any pre¬
vious Study and almost triple the
Study .in September, 1952.
increased

the

of

use

ing

Ex¬

change's marketplace by women,"
Funston commented, "is not
surprising in view of the prelimi¬
nary findings of the Exchange's
1956

Census

of

Shareowners

time

number

men

48%."
*

000

than

more

(6)
ume

all

reported

volume

Gains

of

87^

share

by public individuals
short-

and

over the
elections

outcome

1X'

and

14

21,

volume

their

investment

which

has

is

a

been

Tbev

or

n

probably will be closed out befnmon.
/low
tweenr 30 days and* six months
A
long-term transaction is one
which, has-been

or

be closed out in

not less than six

months.
one

"Grass-Roots" Capitalism

will

"Only two of ten major cities,"
Mr. 'Funstoii sSaid, '"showed* :p'er-» -

tv

probably will

out

within

and

to

purchases
cV»nr+
caloc *» '
-77-'7'
short
sales.)

close

0f

his

prepared

the

ing.

the

picture,

state

entirely

affairs.

farmer's

that

will

be

selves

ideal-he likes to keep

an

V
is, he

V

>

.

b

-

more

won scarcely
than the battle of principle.

That

is'to

kind

say,

has
'he

won

his fight

flexible i. price "''Supports • by
■Vwhich so-called parity will be
for

moved up or

Bargeroa

Con-

down within a range
90%, in accordance with
supply and demand. But he has

of 75

to

out

had
to fix this year's
vgressmen and
supports
■r'Ai-:-'
' Senators. With the farm situation pretty close, to the 90% figure
(7)* People with incomes
.looking up, their predictions of in order to win the principle. And
;in»March,; 1956,- as compared: to*- between $10,000 and$25,000:'^ recapturing control of Congress there .is little * doubt - that if the,
June, 1955. Seven cities shtowpd^ year have steadily increased their .have1 more-substance. Ezra Berf- Republicans suffer severe losses
declines and one was* unchanged-" proportionate participatiou ln the rs6n,-.the conscientious Secretary of in the farm areas this November
The decline in the relative amount jnarket.-:
».
*
,v ,J Agriculture;
is
coming . to 7 be there will be- an almost ■ irreof
business originating in large
(8) Margin transactions by pub- looked on with more respect.
sistible movement to restore the
metropolitan centers may indicate lie individuals represented 21.7%
He is undoubtedly one of the - high rigid supports.
In that case
an increasing investment interest
of total share volume. About 80% most unusual men ever to hold the farmer will be right back in
among people in small towns and of these margin transactions were that office. It should have seemed the position of having his acreage

centage increases in volume by
public individ uals and * institutions

.

•

-

-

.

.

cjties^, 7'
hand thus
the

*

.,

.

.

for

the '.facts

have

we

at

investment ii purposes,

short-or long-term.

either

ciear

do

we

interpreted

have

could

reflecting

be

further
real grass-roots capi¬

transactions.

/•-

*

to

The remain-; thing

far, are not ^conclusive^ ing one-fifth represented trading

figures

-

...

,

.

about
he

when

knew

any-;-reduced year after year until it

agriculture that the

' that- was

road
-

who

anyone

took

followed
ruinous.

being

over

was

would

seem

the time would come

when-the farmer had little acre¬
age

commodities

left.

were

if

applied

makes an appalling
that is the direction
agriculture was mov¬
^

whether

to

as

to

they

into

come

want

their

dis¬

during the camgaign or not.
One who has,no worries of this

of

is

Senator

Homer

While

Indiana.

Capehart

his

colleagues
are
.wondering
whether to tie
their fortunes to Benson's kite,
he

has

own.

fashioned

He has

his

a
own

kite

of

his

solution to

the farm problem,

.

>

,

/ "While

has

other

yet

Benson

! J.}

tricts

-As. it

economist

of what would

In spite of this, however, Re¬
publican-Congressional candidates
are
still debating among them¬

He

never

attained in this complicated world
before him.

makes,

supports,
This seems

year.

study

It

the

-bubit is

m

them.

to

in which all

of

he

price

the tobacco formula

power

Federal Government

which

Bureau

a

to

happen

awful

an

predecessors

the

all

realizes

H

,

had

a

who
they could
gather, Benson would like to get
out

Carlisle

ioss

he

$600

or

year.
A Farm

representative

organizations,

Bureau,

Unlike

thpi

thrpatpn

day period, plus all reported short
sales

* h,r

more

farm

wanted

p

r

n

the

the

Farm

—

et

t

of

oh

satisfactory to the tobacco
growers,
though,
because
they
vote for
the system
year
after

steady time turning this trend around.

a

ePnhnwer

ParrV4n<r.

30-

a

of

LrJf

-

closed

year's

seriousiyjwqr-.
; ried about Mr.

A trading transaction, isb
has been or probably li

-

port

have

p..

which
be

worry

£,^r m bnces-

in-

(Under the terms of the Study,
short-term

$5

of the News

increase in

repre-

T h e y nave
£°ne up 11%,

a

of this

lifting with

represented long-term investment.

out-;
against

main

the farm problem

—•

seems to

vol-

long-term

Republicans'

to

under

however,

By CARLISLE BARGERON
The

down

half an'acre

New';

vestment transactions—about 60%

by public individ¬
"i'-.i/7-

uals.

1.7.

from

now

March

double

Ahead

more

y.'.?i
Exactlv

sented

in "the first Study in September,
1952.
They accounted for 23.7%
of

also

transaction
on

for

from

2.1%

to

up

states.

bought and sold 1,989,-

shares

Washington

*

The majority
tobacco growers are
slightly more than

burley

held

From

and

Florida, Michigan, Virginia and California, among other

|

Women

1.7

1.5.

For the first

52%

—

from

of

•

7

existing grower.

an
•

in-

Jersey,

shareowners

women

from

1.8%
1.7

from 1.7,
Chicago to

Study\s accounted

were

Mr.

nearing completion.

1.1

Francisco

than 2% of ^pblic business, mov¬

first

"The

to

to

San

(5) Texas, for the first time in

any

March 14-21, con¬

on

5.3.
to

creased

Detroit

ber of

to

Pittsburgh
from

5.2

(279)

set up a

It would be to
"crash" research program

to

develop new uses for agricul¬
tural products.! The Department
of

Agriculture has had a research
ever since it was estab¬
lished, back, I believe, in Lin¬
coln's
Administration.
But
its
agency

emphasis

has

been

on

greater

production.

Capehart would put the empha¬
on
developing new uses. Hi*
plan has caught on widely among
the agricultural experts and tha
scientists generally. He got started
too late at this session but if he
7

sis

That is what has already hapinevitably- to a
growth of a
is reelected, and the chances are
said, "should refute once and for situation
whereby the
Federal pened among the burley tobacco
talism."
all the mistaken notion that mar- Government would be rationing growers, v In order for a person he will be, his plan will be among
i
The Study, Mr. Funston stated; gin transactions are synonymous poverty on_ the farms. But, not- to go* into tobacco growing now the first orders of business ioi
also has re-emphasized that the with
trading transactions."
' •
withstanding Benson had the sup- he must purchase a quota from January. y!,-:^
as

Exchange's

in

;

as

that

and

the

the

market

measured

standards.

cal

Mr.

It

Funston

wasb leading

*"

;

use

is

con¬

by histori¬

This announcement

•>

Highlights of the Study include:

(1) Public individuals again
counted

-

findings,"

not

is

an

offer of securities for sale

or b

solicitation of

an

offer to buy securities

Study's Highlights

-

v

"These

is used pri¬
public for invest¬

the

purposes

credit

of

servative,

-

market

marily by
ment

a

for

about

share vo'ume

60%

of

July 18, 1956

New Issue

ac-

total

the-Exchange.;

on

:

f
(2)
The
volume
of
shares
bought and sold by and through
institutions

(such

panies,

and

-intermediaries

The

banks, insurance com¬
investment,
companies,

as
;

$60,000,000

•

educational

institutions, pensionfunds, personal holding companies
and estates) has increased in each
successive Study..
< ~
»
On

Superior Oil Company

;3%% Debentures due July 1,19817

percentage basis, this "in¬

a

stitutional"

business

done-on

the-

Exchange March 14-21 was 16.4%
;o£,total volume, more than re¬
corded in the two

ies

made

in

preceding Stud¬

June, 1955, and De¬

cember, 1954.
It was
19.2% in
March; 1954 and 20% in Septem¬
ber, .1952, both periods when the

daily
less

reported
than

volume

2,000.000

averaged

shares.

-

The

Copies oj the prospectus

most active of all institutional in¬

vestors

and

map

be obtained jrom such oj the. undersigned

(who are among the underwriters named in the prospectus) as map
Ugatlp ojjtr these securities under applicable securities taws.

banks

commercial

were

Price 100%

,

plus accrued interest from July 1, 1956

trust companies, followed by
funds.
Banks
and
trust

mutual

companies

accounted
for 41.7%
institutional and intermediary

of

volume,
13.4%.

and

mutual

volume

New York City.

.;(3)

all

United

j

all

States

measured

,

f-om

in

1953

June,
1956.

York,

the

Canada

has

about

3%

when

and

-

,

••

;

Cities

of

v

.7

The First Boston

& Co.,

Inc.

•-

4.1
"

Goldman, Sachs & Co.-.'c Kidder, Peahody & Co.

to

Lehman Brothers

;

7 Merrill

in

Declines

major cities, (New
Chicago, Philadelphia, Los

"

-

-

ed
v

Lazard Freres & Co.

7

Smith, Barney & Co.

Union Securities Corporation

White, Weld & Co.

Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation;
Dean Witter & Co.

Hemphill, Noyes & Co.

Paine, Webber, Jackson & Curtis

Reynolds & Co.

Hornblower & Weeks

San Francisco, Pittsburgh and

ases

.

*

Of ten

ewark), only San Francisco and
jtroit
showed
percentage
in-

.

Kuhn, Loeb & Co.

Corporation

4.ngeles, Detroit, Cleveland, Bos¬
on,

:s7-;7'.

first

1954,

1955,yand

Share of Major

(4)

outside

business,

in

March,

>

and

steadily

Dillon, Read & Co. Inc.

in

y-y'ffr'r':".■

sources

public

3.5%

for

of all "in¬

originated

The proportion of business

from

risen

funds

30%*

Less than

stitutional"

in public volume as comto

June,

declined

1955.
to

**%, Philadelphia

New

29.6%

to

2.2




York
from

from

Salomon Bros. & Hutzler

Wertheim & Co.

8

The Commercial and Financial Chronicle.. Thursday, July 19,1956

]

(280)

C. G.

.

Company—Report—First Calir

Glasscock-Tidelands Oil

.

fornia Company, Inc., 300 Montgomery

;fa', ;■-<

20,. caiif.

.■-

t:

Street, San Francisco
fa -/fa.,:fa77 *7 7: ;> 77 7;

C □ Ml N G

Limited—Analysis—C. M. Oliver & Company

Granduc Mines

EVENTS

West "Hastings; Street, Vancouver 1, B. C.,
7/ 7
,77:7'*'777 •
"j 7':7'-7:;7
Harris-Seybold Company—Analysis—Kidder, Peabody & Co.,
Limited,' 821
Canada.

•

-77

-

Recommendations & Literature

17

mentioned will be pleased
parties the following literature:

understood that the firms

It it

to

tend interetted

Hotels Corp.

—

Analysis

—

Situation

—

Study

—

York 5, N. Y. Also available are data on Poor & Company,
Sutherland Paper, and an analysis of General Precision

;

7

Street, New York 5, N. Y. y}

•

Company,

and

r '

,

•

-

.

,•

Peabody Coal Company—Analysis—Reinholdt
Locust Street,

.

non,

v

ond

quarter—Laird,
Y.

York 5, N.

Bissell

120 Broadway,

& Meeds,

80 Wall

Over-the-Counter Index—Folder showing

up-to-date

an

com¬

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National
Quotation Bureau, Inc:, 46 Front Street, New
York 4, N. Y.

~

~

v

York 6, N. Y.

"

New

7

United Shoe Machinery
'

Co.

—

Walston

Railroad

&

Firms

a

C.

McClure

&

Nov.

Co.,

—

Corporation—Analysis—Harris, Up-

—

Sanders

AUyp gpd Company, Incorporated, 122 South La .Salle Street,
Chicago 3, 111. Also available is a memorandum on Sund-

Westcoast

April 21-23, 1957

P.

t

Transmission

a

<

7 Hotel.
Nov.

—

Report

—

Wisener

—

—

Company, 73 King Street, West, Toronto, Ont.. Canada.
Fitch, North &
Co., 1006 Baltimore Avenue, Kansas City 5, Mo.

7
^

Broadway, New York 6, N. Y.

,

Delhi Taylor

Oil Corporation

—

the'

NSTA

-;-V7-7,:,

-

Dominion Steel and Coal Corporation,
Ltd.—Comprehensive re¬
port—Burns Bros. & Denton, Inc., 37 Wall Street/New York

'

,7We

are

7

pleased to report that Col. Oliver J. Troster of Tros-

Building, Detroit 26, Mich.

"■

Our

on

tributors Inc.

C. Roney &
available are

Also

; we

*
>

v
T

:

•

/

l

your

retail—425

over

the counter

luck,

Financial

Ed,

and

grouped

5

10; 10 to 23; 2*5 to 50; 50 to 100; 100

below

we

B.

are

our

I fa,

(Special t.o The FHtancial, Chrohicue)

DETROIT, Mich.
Bryan, George W.

fast

'after

know

all

Robert

an

pulling for

Goodl

and

over.

Detroit Stock

your

•

V

.

Security Traders Association
Pershing & Co., 120 Broadway, New York 5, N.Y.

.

(Special to The Financial Chronicle)

FRESNO,

74

York

Mich.

—

James

HAnover

2-L400

come

»

-

Wires

DETROIT

To

•

NY

~
■

6, N.Y.

-

LOT AVPE! ES

HARTFORD

PITTSBURGH

PHILADELPHIA

ST. LOUIS

SAN FRANCISCO




DETROIT,

Worcester is

HOUSTON

GR/ND RAPIDS

DALLAS

of

America

(Special to The Financial Chronicle)

M.

Marrs

Grover

Calif.

—

Dorothea

the staff of
Fillbach, 548 San

has joined

C.

Boulevard.

Joins Swain & Co.

(Special to The Financial Chronicle)
-

r

CLEVELAND

Bank

Charles A. Parcells Adds

1-373-377-378

~
.

Hall,

BURBANK,

affiliated with B. C. Morton

& Co., Penobscot Building.

'

Private
CHICAGO

York

Teletypes

,

-

&

Fernando

New

W.

Grover Fillbach Adds

B.

Security Dealers Association

Trinity Place

Arthur

Building.

Kembers
New

Calif.

Foster has become affiliated with

Bendure and Paul Tobin have be¬

y

7

if Special to The Financial Chronicle)

\DETROIT,

Troster, Singer & Co.

Exchange.

Joins .Hall & Hail

SMITH, Chairman

DEPENDABLE MARKETS

McHugh and
haye joined
Co.,
the

B. Smith

Two With. B. C. Morton

»

Murdock

E.

,

.William* A.

you.

Hall

to

r~

the staff of Baker, Simonds &
Buhl Building, members of

National
c/o

&

Join Baker; Simonds fa77

7

good frien-

Advertising Chairman

5;

Weston

D.

always feel

you.

very

Daniel

with

Paine, Webber, Jackson & Curtis.

narold

HAROLD

stocks, industry designated

according to price:

on

Calif.—Jo¬

HILLS,

Driscoll and Roscoe C.
Williams, Jr. have become asso¬

very appre¬

Ollie, and
count

cCij^erating

friends

A time-saving aid for

Mr.

Co., Inc., 9235 Wilshire Boulevard.
Mr. Williams was formerly with

Convention*

the
are

pppsergtion last Monday.

v'

;

Oliver J. Troster-

;

Exchanges.'

T.

ciated

j. and fellow member, Ed Beck
j; of '.the- 'Chronicle staff, is re-.:
I

Available

can

k

o o

of

We

•Incidentally

i

Dealers

Yea r-B

ciative,

.t

'

•

■

previously with R. H.

BEVERLY

seph

&

Supplement
Chronicle.

Tecumseh Products Co. and United Shirt Dis'•

Singer

Co.,. New York
City, has again favored us withj
a
half' page advertisement for
ter*

■

.

memoranda

was

Moulton & Co. 7"

LIBBING

Publications, Inc.—Memorandum—Wm.

Co., Buhl

Stock

:

(Special to The Financial Chronicle)

AD

i

Federated

Co., 621

;Two With Daniel Weston

5, N, Y.
'
'7, 7 / '
.j- Elk Horn Coal—Memorandum—Joseph Mellen & Miller, Inc.,
Union Commerce
Building, Cleveland 14, Ohio.
*
;

&

Spring Street, members of
Angeles and San Fran¬

Los

Gordon

Notes

Richards

of Hill

staff

—

per copy.

i..

"

? v

LOS

South

Delta Air Lines, Inc.—Review—John H. Lewis &
Co., 63 Wall

Street, New York 5, N. Y.—$2.00

With Hill Richards:

cisco

r/\
Analysis

y

ANGELES, Calif.—Leland
D. Gordon has been added to the

Scherck, Richter
Company, 320 North Fourth Street, St. Louis 2, Mo.

:

(Hot Springs, Va.)

(Special to The Financial Chronicle)

;

k

McDermott & Co., 44

Mellott, Thomson, Pitney & Co., 29

-

■

ciation Annual Convention.

analysis of Nationwide Corporation.

an

Analysis

"

3-6, 1957

and

Wall Street, New York 5, N. Y.

Also available is

i

National Security Traders Asso¬

•

Beneficial Standard Life Insurance Company—Special
study—£,
Fewel & Co., 453 South Spring
Street, Los Angeles 13, Calif.
Blaw-Knox

Group
of * Investment
Association
annual
meeting at the. Statler Hilton
Texas

list of low labor cost companies.

Corporation

Hotel.

(Dallas, Tex.)

Bankers

^

'Whit'aker .Cable Corp.—Memorandum—Barret,

Co.

<~Company—Bulletin—Peter

issue is

Hollywood Beach

&

Washington Water Power—Data in current issue of "Gleanings"t
—Francis I. du Pont & Co., 1 Wall Street, New York 5, N. Y.
same

the

at

Memorandum

States Steel Corp.—Memorandum—Moore, Leonard &
Lynch, Union Trust Building, Pittsburgh 19, Pa.

Also in the

7

;

(Hollywood

Beach, Fla.)

United
«

^

1956

25-30,

Investment Bankers Association
of America annual convention

Y.; fafa'x

6, N.

meeting of Board ©f Gov-

ernors.

•

Co.

Corp.—Memorandum—Talmage & Co.,

111 Broadway, New York

.

American Marietta Company—Detailed analytical
report—A. C.

Anaconda

Pacific

Insurance

14, 1956 (New York City)
7
of Stock Exchange

Association

Memorandum

—

Co.—Memorandum—Louis

Trinity Universal

■

Spring*

(Palm

the El Mirador Hotel.

•

Nov.

ganization, 100 Broadway, New York 5, N. Y.

;

■

1956

ciation

617 Madison Street, Tampa 2, Fla.

Co., 120 Broadway, New; York 5, N. Y.

Machine Tool

Western

fa '' i'*'.

24-27,

National Security Traders AssoAnnual
Convention at

'

Thrifty Drug Stores Co., Inc.—Bulletin—DeWitt Conklin Or-

of 50 good, quality equi¬

.

strand

on

of Gov¬

r-

.Calif.) 'vfafafafayfa&fay-r:

•

Corp.,

of income rail stocks and a report on Textron.

Tampa Marine

ties—Bruns, Nordeman & Co., 52 Wall Street, New York 5,
N.rY. • •
• •
;
•
•
'
'•

ham &

Investing

Co., Republic National Bank Building, Dallas 1, Tex.

Suggestions—Lfst

American Home Products

r

Place,

ernors.

Street, New York 5, N. Y.

memorandum

v;;:777^:7 'fafa- fafafafa.

y, Firms meeting of Board

Oct.

fa Co., Inc., 120 Broadway, New York 5, N. Y. Also available is

77 7;-7.

Summer Investment
V

Trinity

a

^

Corp.—Report—General

Sylvania Electric Products, Inc.

Over-the-Counter Securities—List, price grouped and industry 7

designated—Troster, Singer & Co., 74

Also available is

Sperry Rand Corporation—Analysis—Winslow, Cohu & Stetson,
26 Broadway, New York 4, N. Y. Also available is an analysis
,

Over the Counter Common Stock Handbook—Pamphlet—M. J.
Reiter & Company, 60 Wall Street, New York 5, N. Y.

7

Racing

and

Hotel

4-6, 1956 (Detroit, Mich.) f:
Association of Stock Exchange

of the highway program with particular reference to;
Bucyrus Erie, Chain Belt, Chicago Pneumatic Tool, Ingersoll-

Southland

the

at

Dei.
& McKin-

-

New

meeting

Ding" at jthe Forest Hills Country Club.: 'fa:fa7
fafafa. fa

7

'fa

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

Bank

sociation seventh annital "Fling*

& Gardner, 400

Rand, Jaeger Machine and Thew Shovel.

7

7.

'

,

'

an

survey
•

New York City Bank Stocks—Comparison and analysis for sec,

Sti Louis 2, .Mo.

.

of

Convention

Sept. 27, 1956 (Rockford, III.)
77
\ Rockford Securities Dealers As¬

.:

Peninsular Telephone Company—Report—Thomson

.

,

Japanese Stocks — Current information — Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.

V

Inc.

Association

Radisson.

Depart-

Also available is

Mechanical Handling Systems,

analysis of

on

(Minneapolis,

34th

annual

Michigan Gas & Electric Co.—Memorandum—H. Hentz & Co.,

7; 60 Beaver Street, New York 4, N. Y.

Trin-

15 Broad

,

Inc.—Analysis—Unlisted Trading

1956

Women

.

.

1-21,

National

Co., First National

Tment, Ira Haupt & Co.,. Ill Broadway, New York 6, N. Y. 77

L ity Place, New York 6, N. Y.—On subscription $1 per year.;,
•Foreign Letter—Circular—Burnham

7

Building, Dallas 1, Tex.

McGregor-Doniger,

Chilean Nitrate. Industry—Discussion in July issue of "Amer¬

i"

Bank

party at the Omaha

precede the event

Minn.)

».

Mar-Tex Oil & Gas Co.—Analysis—Ferris &

7

fa

ican Investor''—American Stock Exchange Investor, 86

Sept.

and

Tri-Continental Corporation, 65
..

cocktail

Aug. 22.

Keisey-Hayes Wheel—Data—Bache & Co., 36 Wall Street, New

comparison of leading

New York 6, N. Y. y

Broadway,

day at the Omaha Country Club.
A

Club will

the United States—New York

trust companies of

fa Hanseatic Corporation, 120 Broadway, New York 5, N. Y.
Business

Inc.—Statistical circular

Securities Corporation, 111 Broadway, New York 6,

Equipment.

;

Nebraska Investors Bankers As¬

(No. 19)

Banks and Trust Companies—Quarterly

(Omaha, Neb.)

Aug. 23, 1956

15

sociation annual frolic and field

Houston Oil Field Materials Company,

with comments on competitive atomic
power, boron, lithium, nuclear weapons program, etc.—Atomic
Development Mutual Fund, Inc., Dept. C, 1033 Thirtieth
Street, N. W., Washington 7, D. C.
banks and

.

Newburger, Loeb & Co.,

York 5, N. Y.

Broad Street, New

—Aetna

Atomic Letter

New York 5, N. Y.

Wall Street,

Hilton

Parcells

UEMPSET-TIGELER & CO

&

-

Mich.

now

—.John

PHILADELPHIA, Pa—Charles

P.

with Charles A.

Co., Penobscot Build¬

E.

Downs

has

with Swain &

become

associate

Co., Inc., Land Tit'

ing, members of the Detroit and

Building, in their trading depa

Midwest

menL

Stock

Exchanges.

Volume 184

Number 5552

...

The

Commercial and Financial Chronicle

(281)

9
t

enlarged by.the-gain in corporate
earnings in 1956. Thus the total

Why Things Look Good Ahead
By ARTHUR

anil Director

Dean

k

Business Administration,

of

Dartmouth

national

School

Labor's

planning, and successful handling of three former
of past depressions, Dean Upgren envisions 10-year

.

.

expansion of families and industries, as
outlined by Eisenhower and his economic council. Predicts /
$15 billion GNP increase by 1965 with rising corporate and V

v

national savings to finance soundly new plant.;
despite current "rolling adjustment."
,:
V*';* •••''

decade, of

A.

.

.

,

tional

will

rise

from

ties

quarter of

is

above

than

more

$7

can

This

billion.

000,000,000. in

v

ingsv

,

,

1965/; In
than

-

«As

years

ft

of

1946

such

and

bank

.

$4,000

and
K. upgteii

in

economic
too

understanding

are

that

decade.

We

,

expect

can

we

:

:

are

the

in

be-

.

into

adjustment"

na-

of bank credit
financing of new plant

the

the

"discretionary" or
"optional" spending. "When families

the neces^ curred.

spend their income for

all the

But', once

life.

of

sities

debt.; This year;

they ments will exceed

only $4,000 a year

earn

their wise administration of their
consumer

growing,

needs" are "met, a
reaction breaks out. With

much

"subsistence

as

new

repay--,

debt

cause

failure

to

economy

LOS
C.

on

represented

by

limii/H+uh

liquidity)
past

tries,

and

moderately

in

be adding to productivity in

almost as
year. This

Viaif
half

economic

50%
that

D.

Busby

Company, 215

West Seventh Street. '

col¬

;

v;-'

With B. C. Morton Co.
.(Special to The Financial Chronicle) .'

measure

liquid

level

Calif —Frank

James

and

uel B. Franklin &

in

LOS
L.

ANGELES, Calif .—Robert
is ", now with
B.• C.
— »—•
w.

Thornton

—

Morton & Co., 1752. West Adams
Street."

history.

/

;

•

.

;

>

..

Now With j. M. Barbour
(Special to The Financial Chronicle) '

PASADENA, .r Calif. —Edward
Edison

in
our

is
is

with
wnn

connected
connected

now
now

j0un rur
Harbour-fr Co - Citi7Pn«?
JUIin ivi* L>aroour ocyo., miizens
Bank Building. He was formerly

with

J.

Liquid Financial Means

Pasadena

Corporation

Logan & Co.

v

.

v

and

„

deThe liquidity is highest, perhaps
60%, in the agricultural West, the
region of most severe banking dif¬
ficulties in the past and it is lowest, perhaps 40%, in the East

home

building, business investment wili

in-

Knor

about

enntract
contrast
to

ANGELES,

Burke

have become affiliated with Sam-

com¬

business

the term and

use

fSpeciaf to"tlhe Financial Chronicle)

»-

the

of

failure which

a

Franklin Adds Two

of

depressions.

That cause happily is the
certainly "cured" of all for

bankers

a way

where

there

QVAiind

is

much

rliirorcifinrl

around,

incomes and greater consumption
next year. ' •.
/i;:£.':v7

greater
V*

diversified

o

Ir

n

i

all
r\

Lamson Brothers Adds
(Special to The Financial Chronicle)

CHICAGO,
Dersch, Jr. is
Lamson

cf

Thus;

i

t

banking

111.
now

Henry

r—

L.

associated with

&
Co., 141; West
1'
j
Boulevard, members of

Bros.

'l

r*

Jackson

strength.

adds perhaps half to the savings" \ The enlargement of consumpfamiles are ga|ns being made by consumers, tion is a willing task for American
families/
The purchase of new
able
to
buy
"durable goods." Retained earnings of business or"**™"''00*
zers
discern this new direcBankers
direc¬ "corporate
savings"
are
being homes is another willing task.'
tion of spending and, noting that;
/ ///V4rf./iV;
income expansion permits families
:—;
—1.
—^
:—• ••
adequately to service their "debts,'? :
are willing to grant loans to facil¬
chain

repeated

supply,

American

most

Depreciation, too, is still that' will be" reflected^ in* higher
possibly by
$2Vz billion a

third

less than five

lapse.

Amejrica. It is outlays. Consumers this year will clines in the output of automobecause it is increasing save in larger amounts because of biles and farm equipment indus-;

amount of

the

is

the

economic

plete economic and
;

ing the economy of

doing so

a§emen* Corporation o_ Denver,

area

income. Thus, despite the "rolling

gross

ha^J^n^d the sJaff °*F*F Man~

"concern" this year lying in ,: the discernible future to 1966. !
of maximum plant "ex:
V The cure has been made possipansiofi plans by industry, This
ble by the building up of a liquid
tells Us, that- the: rate pf, technobanking system. Before financial
logical advance is at"its very best.
crises in the past, banks possessed
Here is what has made modern a
liquidity far below their liquid¬
man
so
much more
productive
ities ; today.
The entire banking
than' man who lived in the 2,000
system
today
is
probably
(as
years before the "industrial revothe

tempers the flow

total

It

the

'•

;

.

occasions, possibly six, in the period of only 60
years from 1873 to 1933, brought

next

fortunate indeed to have

deep

no

well

augurs

leaves

past

money

fact' and

of this very

peace
during the
period of great economic advandes

is

tional

1-which twill
carry
1,000,000 families across the $5,000
income,

level each year, is chang-

present

I find workers

savings—corporate and individual—to rise as credit policy

expect

This

for" industrial

1955'.

credit

result is

our

Calif.—George

Houghton
and Harold R. Jones
?ni2Vnd
"®roid
*i?nes

prevail.

as great a

lution." Tools and equipment in
the worker's hands have enlarged
his productive power, which is
the well-spring of all his gains in

to

reason

march

The

high plant

a

LOS ANGELES,
w

scale of the total eeonomv
is nniv
economy is
only
about 2 or 3% so that it is endurable for the short periods it may

had any group in helping

as

solve

their

than

Moreover there is good

economy.

1946. This upward

inflation.

inventory liquidation.
Fortunately, its weight in the

labor,

Managem't

{Special to The Financial Chronicle)

II has been

effects

for

Two With FIF

instability in the past and

our

ing accomplished and, most happily, without a serious "jar" to the

avoid

industry it has

problems.

has

into greater use

beneficial

investment

anpreciative

.

compared to

$5,200 in 1955,

income

7„

.

bank.; credit

-between

Use

sav-

novy being curtailed in order to

$6,760,

in

to

is

|' come
enjoyof an in.

Aruiur

called

was

family will The

result,

a

been

the average

-

,

10

less';

~ r *

-

^

'•

an

be provided by the

|1956 to $550,- present current' amounts pf

of the

As

stake

an-

second

since the end of World War

capital

move

to the next.

Another

.

of

even

Thus the worker has

.McGraw-Hill.. They are almost
nual rate of 30% higher than these outlays in
an even $400,-* 1955.
The increase in business in000,000,000 in vestment for all new plant facilithe

the

bility is being attacked.
cause

of

°f economic expansion shall

Here, one of three more important causes of economic insta-

of

aware

by

ades.

Investment

per worker and high
levels of earnings per worker.

great economic planned for new plant have reThe gross na- cently been announced by both
of the American;; the Department of Commerce and

output

in

investment

growth lies ahead.
economy

in
-

.

-This is a happy note on which
now
being achieved to close. We can leave to future
with a reasonable
stability it has meetings the solution of our later
not always possessed in past dec- problems when this great decade

\

.

economic advisers.

investment

vestment

i

,

.

by President Eisenhower and his

Factors

plant

the great importance of these in¬

example

investment

,

of

view, labor is

my

gain

"

Enlarged
industry is

outlays by industry. The
telephone industry is an excellent

economic and income

/- individual gross

In

;.v.

investment

;

Awareness

Upon the basis of technological advance rate, better business
V causes

Casual

funds5

investment

plant.

new

saved

finance the

business

■*

College

available

of

soundly

can

Amos Tuck

Solving Three Depression

.

amount

R. UPGREN*

of Research,

1

i.

,

,

i*

_

the New York and Midwest Stock
we

have

the

financial

Exchanges.

Mr.

Dersch

for-

was

to manage the 10-year ecomerly with Straus & Blosser and
nomic and income expansion of /H. M. Byllesby and Company, Infamilies and industry, as outlined corporated.

their higher incomes,

means

;

-

,

.

______

As incomes

such purchases.

itate
.

rise, the ability to

finance family

needs

than apace.

grows more

-i

or a

solicitation of

an

offer to buy these securities.
/

/

:

of

and

encourages

-

850,000.000

a

greatly - enlarge
productive powers
nation's labor force.;' In

the desires and

the

of

of

only

labor force
less than 75,-*

gross

our

was

estimated to be

no

butslightly

000,000

wartime

the

women

in
on

Dated
-

I

July 1,1956

•

OFFERING PRICE

.

shall thus

we

ous

Copies of the. Prospectus
undersigned and others

.

.

"i

.v.

100(4% AND ACCRUED INTEREST

.v

may

be obtained in

as may

any

State'only from such of the

lawfully offer these securitiesin-such States

M"!

V: :

•

r

«

be

or

1957 first half.' How seri- /

are

the obstacles to our prog- v

in the short run?

ress

earlier

the

As

the term

?

:

Kuhn, Loeb & Co.

..

of

is.
"konjunktur"

our

kind

of

is

econornic

today?

/

'

equilibrium

.

,

'

■

^

.

The most remarkable fact in
economy

planned
try, the
dustries

,

.

V

Eastman, Dillon & Co, * 5 Glorej Forgan & Co."
'

-=

v

•

today

the-;
rthe

is

determination of indus-*
petroleum and steel in¬
for
example, to; keep ;

abreast of expanding demands- for *their

products.

«•

;

•

-r

Lazard Freres & Co*

Total- outlays ".

Smith, Barney & Co..

1

■

'

.

*An

the

Aetna

gional
July

address

Life

Dean Upgren before
Insurance Company Re-,

by

Onf-rence,

...

Murray. Bay, Quebec,-v

11, 1956.




'

;

j

Blyth & CO., JnC..

;;; j

Goldman, Sachs & Co, ' Harriman Ripley & Co.

'

*.

"

•

Lee

r

\

July 19, 1956

.

-

ir '.

7-

-" '

.

.

*

',

'

w

Kidder, Peabody & Co. 7 Ladenburg, Thalmann & Co.
Salomon Bros. & Hutzler

.

(•

Incorporated

Union Securities Corporation

Stone & Wehster Securities Corporation

Higginson Corporation
"

.

^

*

"*

?

J

Merrill Lynch, Pierce, Fenner & Beane J

Lehman Brothers

:

Drexel & Co.

White, Weld & Co.

-T

-

'f>'

.

Incorporated

Determined Business Planning

entire

35

-

what

meant

complex of forces given

have the
us

.

A. G. Becker & Co.

The First Boston Corporation

".
,

.

this

By

today?

-

economists used

too may ask what

we

nature

the

.

'

*

July 1,1931

;

there is wide agree¬

where

on

Due

'J'.

well

far
"wel¬

any

\

W

1965, there are different views,
where we shall be in 1956, last

half,

.

,

were

- v:

; : Although
ment

.

well-being

in

than

welfare

state."

A.

produces

in.;.America

more

Mortgage 3%% Bonds, Series J

faster pace toward a v

a

material

of

which

peak)

...

.

•

determined to propel their,,

families at
state

First

■r
•

than,,

more

one-third of these (a number
above

•ii&b.J'

A

not;

1955

In

force.

.".'I. t

Company

,

in part by the growth

labor

our

fare

Inland Steel

;.r

and this is

fact wants grow apace,

reflected

;

.

activities,

these

:

v.v

variety
quasi-educational activities. All

resort,

;

offer to sell

offering is made only by the Prospectus.

also leads the automobile to«
golf course and to the ocean

the

l

an

discretionary spend¬

-The path of

ing

■

The
NEW ISSUE

Spendjng

Rising Discretionary

This advertisement is not
,

•; '

-

Dean Witter &.Co.

..

•-

i

k

*

"" "

'

"

-

^ r

7"V''"

*' " "7*'"

+

^

'

The Commercial and Financial Chronicle...
10

.Thursday, July 19, 1956

(282)

leasing

ery

Pay-As-You-Depreciate
Is

machinery t needed
and
only a short , time and
to the-lessor.
If
the user of the machinery needs it
for a relatively short time com?

special

Superior to
REKSTIS, Jr.*

By W. J.

purchase; terms and financing are the basic
tors; and most long-term financing inquiries

would like, to
discuss with you is the leasing of
machinery and equipment. There
has been a great deal of interest
The

subject

I

certain
of

nfusion

and mis.under-,

That

has

about,.

is

true

even

among

are

who
fairly

close

t

persons

t h

o

e

all,
to,.
we all

want

make
same

are

sure

Rekstis,'

jr.

-

:

using the

are

in

fact,

aren't

so-called

leases

even

there

general,

kinds that

In

•

any

cannot

be

what

is

an

is

for

treated

and

is

bile

can

variation of

because

user

and

difficulties

cause

isn't

it

option.

obvious

be misunderstood.

may

is the lease which has

But

no

This

an

"" "

-

this

of

-

•

nature

or

be

can

truck

this really isn't the

leasing of

pro¬

duction

purchase

without

even

are

repair which can be done much
more efficiently
by a lessor who
specializes in this field. However,

for the

so

the

fleet, the lessee is
relieved of costly maintenance and

the, rental-purchase type of lease
that

miscellaneous

very advantageous both to lessor
and lessee. In leasing an automo¬

by the tax authorities.
a

example.

Leases

financing. Now, obvi¬
ously, this is not a lease. It is a

However, there is

major type of lease
cover

leasing automobiles for salesmen,

the cost of

-

*

by the lessor. This is
the kind of arrangement used for

plus the purchase option, shall
equal the retail selling price plus

so

our

'

maintained

option to purchase and it provides
sum of the rentals paid,

contract

*

generally not kept on
lessee's premises and which

that the

sales

'

items

agreement that the user has an

conditional

*

an

fixed rental,

a

:

to

used

of

more

no

up

-

The second

rental-pur¬
contains

It

agreement to pay

form

common

the

called

contract.

been able

event, this kind of deal
callecl a true lease and

take

should

of Leases

Probably the most

chase

I
they have

to review every case.

major

consider.-

been

been able to do.so is that the tax

department just hasn't

time here.

is

th

power
power
to
But he

op-

consider

we

ranged

*An address

by Mr. Rekstis before the

Convention' of

ciation

of

Credit

the

Men,

National

Asso¬

Cincinnati,

Ohio.

developed

everything
they
had
been
seeking in long-term financing. It

throughout the life of the contract

expense.

I

Neither

nor

and

company,

my

Corporation, would give
advice and I don't think' I

I.

C.

T.

tax

whether

of

realize

man

user

a

machinery

a

tax saving by

.

want

17

T

the depreciable life of equipment

financed under the plan. On many

i

,

I, personally, see no tax ad-

van.age

kin(js 0f

leasing.

in

you

schedules

allowed

depreciation
on
capital

faster

equipment

became

much

is> they

?

at

a

^now'

uncjer the pian are gearecj

moie

i

^
^
S °J
straight-line
i

State and

Bonds

Loans

and

Banks

they

and

__________________

Bonds__

:

_.

.

of-the-digits method of deprecia^ion. This is the fastest of the
schedules and we have found

-~

user

machinery acquires it, the

of

of

manufacturer
must

machinery

the

dispose of it at a profit.

Re¬

return

must

profit

a
a

term

maker.

„

doesn't sell it for cash, or on an
instalment sales contract; he

the

such

customer

of the

nance

installation

I mentioned

a

equipment^ insurance,
service, and the -like.

Whatever these incentives are, the

Once

manufacturer

a

or

dis¬

a

makes

downpayment

difference

no

Discounts..

Premises

Occupied

lease.

a

1, 2, 3 and

up to 10—and
of 55.' Then you
invert these digits and the depre-

moment ago that

very

a

After -examining

the

and

lease

to ^him

Other

Accrued

Receivable

and

Prepaid

Expense__:

with small downpay-

Resources

TOTAL

1,215,120.71

416,408.73

;

Undivided

($25.00

Par

Value).-

$355,094,271.03

$11,875,000.00
,

Profits

such term but it amounts to

is

$

1

27,691,538.51
3,888.893.80

~"~~

♦Commercial,
U.
Other

S.

Bank and

Saving*

309,132,290.00

Government

Liabilities

14,304,917.61
76,631.11

--

.

;

it's

TOTAL

important

"

"

$355,094,271.03

$5,337,623.46

of

Trust

which under the provisions

Section

1107.12

is

a

Money
of

preferred claim




on

deposit

in

the Banking Law

against

the

as

owned equipment or
-1

.

:

.

lease, of course,
rights to the
machine whatever—and very few
Under

a

lessee

true

has

no

users

like;

that

ar¬

If they buy the ma¬
a
purchase option,
the
original
lease, transaction
probably will be ruled a sale

rangement.

under

chine

all the advantages

are

purchaser

The

leasing.

of

expenses

instead of rentals.
incidentally, financing costs

depreciation
And

written

are

lessor

user

any

on

how much

to

it.

use

He

it,

how little

or

has

complete free¬
of management. And when

use

dom

the contract

the

The

too.

agreements with a
how to use the machine,

pered by

to

off,

the machine and is not ham¬

owns

is

machine

paid out, he owns
free

clear

and

to

continue using it or to realize its

"

—

terms available

at the

same

instalment purchase
In fact, the actual ex¬

an

on

perience of

a

number of manufac-

assets

the
o*

of

Banking
iho S*~*

the

-

Depart¬
Ohio,

of

Bank.

a

straight instalment purchase.
If

a

needs

manufacturer or processor
a

machine badly enough to

enter into a long-term

lease, he is

of-1 going to want to keep it when the
fered
lease
programs
has been lease is completed. And since the
that the terms and the financing new tax law has made ownership

turers

are

and

the

their

dealers wh^-have

basic

factp^s

customers

not

—

as

influencing
any

great

opposed to buy-

ing. The vast majority of inquiries
ment,

it

using

realize its residual value.

they total 9/55ths
through the contract. ■ (

year,
on

so

Here

ownersmp.

desire to lease
*Include$

a

,

program.'

DEPOSITS

enough under a lease'to b^y

machine, they <io not want to re¬
turn it.
They want to continue

total

second

and

the

these

P ' Ce

3,941,538.51

Capital Funds
Reserve fer Dividends, Interest, Ta*es, etc.

how

of

regardless

After

year of a 10-year
monthly payments
10/55ths of the
cost; the

contract,

to
remember
scrap :or residual value.
* j ■y -i
leasing programs are anyway and the books have been.
That is the important point to
unnecessarily
complicated.
Or
if
just another form of long-term
the whole discussion
ultimate
* ™
* The vast majority of
financing.
Any manufacturer ol they buy the used machinery at
they *
distributor
who
going
market price,
can,/get
the the
users
want
eventual
financing necessary to handle a probably will end up having paid
long-term
lease, can" make "th^ more than thoy would have under ownership.
It

that

same

11,875,000.00

Total

basic con¬
the y payments
have
been made, they
want to
own
the machine.
If i they pay
down to this one

come

During the first

,.

•

LIABILITIES

Capital Stock
Surplus

of machinery generally

users

machinery

on

identified.

-

_

It could be
plan or it
can
sell

You

tive

That is the way payments under
tVie instalment nlan are computed,

y

balance sheet advantages, prospec¬

another. "• It may be
called advance rentals, deposits, or
some

on

purchase contracts, There is cost of the machine.
The next
simple reason for that, year it is 9/55ths and so on.'

ment

the

can

so

get a total

inquiries about long-term, ciation allowance - ~for^ the first
leases eventually result) ininstal- year is 10/55ths of the depreciable

ments on one document as well as

14,224,029.99

154,983,026.37
,4,375,162.18

_r

be

'

Income

sales

instalment

You add the actual digits—

years.

most

mainte¬

as

depreciable life,

' you

'

write off three-

you can

Say you have a machine that
you are going to depreciate in 10

Sales Preferred

By Users

popular

Under this

-

*

Instalment

can

useja lease contract. If necessary,
he can offer additional "incentives
to

*

most

one

machine during the first half of

a

every

V/
f

the

taxpayers.

schedule,

bit as advantageous
as
rental ; expenses
charged under lease programs.

If the maker of the equipment

is

the

fourths of the depreciable cost of

new

deprecia-

permit

now

tion- expenses

*

*

.

These

progresses.

schedules

the

to

with

years

and scaled down deductions as the

gardless of what kind of contract
is made to cover the transaction,
it

early

in^ the

depreciation

it

that

—

87,001,503.97

4,66oi656.89

the

be depreciated each year,

tion rate allowed under the sum-

about. - a lease
that 'greatest earning, capacity.
makes- for
a
low downpayment.
fhe new tax law still permits
Let's take a moment to examine tHis straight-line depreciation but
these statements.
it now offers several faster, gradRegardless of how the ultimate uated schedules which permit big
•<

dollars

Securities..

so that
amounts

progresses

aPProximate
can

of

user

something

you

$ 88,218,362.19

Bonds

Municipal

Other

Banking

from

gra(juated—decreasing

are

the term

as

rnff
write-off

r
fixed

the

depreciation Schedules. That

it cheaper than

equipment

RESOURCES
Due

machinery, terms go to
And, second, payments

years

popular illusion, each year of the depreciable life,,
u
w
*
machinery can did not recognize the fact "that -■ Her#fe how it^works. The -payhe can buy machinery loses* value fastest in ment schedules are worked out so
it. And it is believed that there is
early years—the years of its '
at they; parallel the depreciathe

lease

an

States

new

lengthened to more nearly match

leasing instead of buying. Let me
leave the subject with this statement.

relatively short.

were

pay-as-you-depreciate
program was designed to take ad¬
vantage of the new depreciation
schedules.
So, first, terms were

should undertake a prolonged dis¬
cussion

terms

The

Now there is a

that

could

and

let

offers
everything
a
lease can
well taken care of this
A
rental
payment offer, plus ownership.
snuwn
in a profit-and-loss state¬
Prior to the introduction of this
ment is
no
different, in- result, program, instalment plans called
from a statement of depreciation for
equal
monthly
payments

v,

clos.e the transaction.

United

to

argument.

what kind of document is used to

Cash

instal¬

have pretty

Leasing Is More Expensive /

it

1956

in

ers

equipment as owner, I think the
new, faster depreciation schedules

sideration:

OHIO

idea

new

a

financing/designed

the
pay-as-you-depre¬
ciate plan—gave equipment buy¬

depreciate the same

can

short of the definition of machin-

30,

*

Plan

—called

faster

payments

rental

he

purchase programs available, and
studying the arguments on tax and

June

con¬

v/ /•'.//"

buyers take advantage of the new
depreciation schedules. This plan

than

.

of

.

ment

leasing.

he must have as a

as

i

ar¬

attornPVo

expense

tributor has arrived at the amount

Statement,

conditional sales

on a

as

why

reaspn

cannot' be

Shortly after the signing of the
1954 tax law, C. I. T. Corporation

machinery. I mention it cost to the lessee must go up to
only to distinguish this kind - of make the end result to the manu¬
arrangement from true machinery facturer the same.
1' •, / / ;
leasing.
The
third category also falls
The Downpayment ,
■

C i M CI N rsj AT* i»

no

Pay-As-You-Depreciate

general

t

Annual

if machinery
long terms

on

is

terms

same

tract.

his attorneys,
As to whether the user can

machinery

true

as

before,

there

^dividual, his accountants and

As

This is the transaction
to

any •

the

first consideration.

the

to

said

be financed

lease,

a

baknce sheet must be made by

ment.

expense, ;/

an

as

feel that the only reason

leases

four

are

should

we

Four Kinds
"/■:

need
need

will
will

He
He

excavate the foundations.

able to charge the rentals under

all. But, in

at

have

users

some

such .contracts

arrangements.

these

some

that

true

variations and fine dis¬

many

a

shovels and other earth movers

erally treaj; the deals in their own
records as instalment sales. It is

definitions of leasing. There

tinctions
In

J.

W.

of

First

general contractor who has
contract to construct an office

building.

that calls for

I
' As
•
can

Any decisions on how to make up

a

the

available to machinery users gen¬

subject.
I

used
-

.

cent years and
am
afraid a

come

nf

cnrt

be

that woul
would
that

purchase price of the ma¬
will need this expensive equip¬
probably is treated as a sale
ment for only a few weeks. In this
by the seller. And the deal has
very little chance of being consid¬ case, it's more economical for him
*.
ered a lease no matter how the to avoid ownership.
So this, too, is a special kind of
user—or
lessee—treats it on his
books. The would-be lessee would arrangement and is outside the
be well advised to keep this in realm of this discussion.
And so we come to the fourth
mind when considering a rental
category of leasing.
This is the
of machinery.
true, long-term lease. That means
If a lease allows the user to take
that there is no purchase option,
title to the equipment at the end
either written or implied. At the
of the rental period—even if there
end of the lease period, the lessee
is no written option—the transac¬
has no rights whatever , to the ma^
tion probably will be considered a
chinery. It returns to the lessor
sale—not a lease. The companies
even
though the lessee has paid
that
make
such
arrangements
the full selling price of the equip¬

I

standing

by

+V.A

io

*v,ic

rv.-

arrangement

arrangement

isn't

There/just
answer

chine

leasing in re¬

co

particular job
desire or in¬

some

tention to buy it.

the full

in machinery,

amount

after

and the user has no

influencing fac¬
result in instal¬

lion to buy, a lease

long-term financing?

be advantageous to

needed

purchase contracts.

ment

-

»

,

its depreciable life, it-of equipment have about leasing?
lease. This First, they may believe it is to
relieves the lessee of trying to re- their advantage to avoid showing
sell the used equipment in a field the obligation of the equipment
with
which' he is not familiar, on the balance sheet. And second,
This kind of contract usually is 'hey may feel that rental payments can be expensed off faster
made wnen a machine will not be
than depreciation can be taken.

pay-as-you-depreciate conditional sales contract is found
preferable to production equipment lease financing, by Mr.
Rekstis, since the new tax law leaves no tax advantage in
leasing, there is no balance sheet gam, and the user owns the
machinery after the payments have been made. Delineates
different kinds of leasing^ and finds: some so-called leases
are
not even leases at all; cannot lease cheaper than cash

*

returned

can

A

•

for

then

Oiten he is restricted
the use bf the equipment durarrangement.ing the term of the -lease... And
"*./ ,*/#
after paying the equivalent of the
</'/ " , ljeas,n8r **uesuons
•
purchase price, be still doesn't
Now then, just what are ,,the own it. So wnat alternative does
chief questions prospective users he have if he requires or desires

pared wicn

i

Vice-President, C.I.T. Corporation

Assistant

used

machine.

to develop: centage .of the prospective users,
leasing of have gone through with a leasing

want

I

short-term

the

is

This

about

these

resulted
under

a

in

lease

programs

orders

to

long-term instalment

ment program.

have

purchase
pay¬

A very small per-

and "depreciation
leasing is. losing

so >

attractive,

much

of

its

popularity.
I would like to g? one step further in this discussion.; Leasing is
just a form of long-term financ¬
ing
v^ith the disadvantage that
the
user
has no rights.- to the

Eas*m*n, Dillon Adds
S. M. Stallard

to

Staff

(Special to The Financial Chronicle)

CHICAGO, /. 111.
has

Stallard
with

Eastman,

South

La

formerly

Chicago

Dillon

Salle

with

Dean Witter &
was

Samuel

—

Co.

Assistant

office

&

Street.

Bache

M.

associated

become

&

Co.,

135

He

was

Co.

and

Prior thereto

Manager of the

of

Phillips Company.

The

White-

Number 5552The Commercial and Financial Chronicle

Volume 184

(283)

is

rgram

the

Public

Utility Securities
5

billion

:on

the first

program,

By OWEN ELY

ganized

Natural

in

line from
pactcrn

1928, to

the

build

pipe

a.

Movipn
Mexico

onrl
anci

AA7oof
West

raising

contracts.

capacity to
including - intra¬

Whiie in

leg of th,is expansion
expected to be finT

is

to

:

nri

in, 1957-8, permitting full deliver-

rr a

r»*-> n

i

_;ii

.

,

±.

-

^

1950

fund.

purchasing

ing

to

the

cf.

are-held

latter

acquired

amount

under

while

4.2

as

5.7

trillion
1.5

a

proven

The second
return-cf

were

and

reserves

are

subject to high overrides. The
company is now exploring for gas
in

$198

various

from British

areas

waiting the completion of lengthy

proceedings. A refund cov¬
ering 1953 earnings of $3.2 mil¬
lion (with interest) will be made.

trillion

cf.

with

the

rate

case,

to

Al¬

berta ,to the. Gulf of Mexico.
has
about
1.6, million
acres

up

FPC

cf.

royalty provi¬

trillion

The company is now clear¬

its rate problems by com¬
promise
methods
rather
than

amounted

reserves

grown

Of

sions,

i

^

been

only 800 billion cf. tie figure

has-now

next year, wit.i the
scheduled for completion

Texas to

It has

reserves, and also exploring wide¬
ly to build up its own reserves.

agreed *;to
deliver
300 rpillionies in 1959*
c„bic feet a day to Pacific Gas & •
The program of expanding the
electric Company in the, northern,*ioa(j by some 450 million cf; per
t
I
hart
of
tVlP
St.at.P.
_i_l.
anj-. central
part
of tne
State,
tday
cost an estimated

or-

was

fields of south-

gas

"INToixr
New

eastern

Gas

,

cf.,

total

early

-balance

A v-V.. El Paso Natural Gas Company
Paso

million

cf.,

nstate and field sales. Construction

ished

;r El

750

company's

-2.8

11

involving a rate
6J/2% compared

case,

about

6%

allowed

will

in

first

the

be

submitted
.compromise proceedings.
*.

President

now

Paul

Kaiser

in

bis

El"Paso, Texas.
1930,..which
rconstruction *'jyimionand,,the
as. In
In 1930
,vwhich involved*,tne
involved*.tne '^construction
million' and
,,'the remaining 300
the
company ,'had
revenues./ of
of a line from the San Juan Basux,. minion*. about $160
million
or
only a little pver $1 ^million, but in New Mexico to the Californiatotal 0f $356 million.' The first
with continued expansion of operborder. Deliveries to these Cali- ,'part 'oft* the program is being fiations.they now exceed $196 mil- fernia
customers Lave" .steadily.*nancGd bv the sale of $162 million

Wyom¬
ing, Colorado, Utah, New Mexico

lion;

and Texas.. It also has substantial

corresponding to the increases in
its deliveries, as .above outlined,

supplied about 11% of its gas
quirements and the ratio is

expansion, in which event the

„

?'Net /income

wildcat

leases

in

about 1.8 million

Canada

acres

It

recent

of

talk

before

the

New

York

Society': of
Security
Analysts,
that "the company should

and

stated

in

show

increases in

its

net

roughly

has:increased until peak day delivery-;bonds to institutions and tne progrown/from $282,000 in 1930 to ;has exceeded 1.4 billion cf. a day...; posed-sale of $25 million first interests in the -tidelands 1 area, for the years
1957, 1958 and 1959.
and some 500,000 acres in the San
$22.5 million - recently* *Tnus the ,lhe - California
.utilities
serve * ureferied atopic to the nuhlic the
It
does
not
now
appear
to be
Juan Basin, including 930 produc¬
company
is one of the Sniper* pract'cally, the. entire Stat^
necessary to issue any more com¬
ing I wells.
In 1655 the company mon stock to
growth^ utilities and with further > nJ Paso supplies over two-t ,irds[ july- or early * August.
The re—*
help finance this
a

-

year.

t

schedu^d for^^late

•

.

ambitious

construction

of the gas supplieu to their cas-

plans it
promises .to remain in that class,
The

/

has benefited

company

tomers.

demands

the

by a;

majning

:V

;

for

gas

$9

million

will

be

sup-

plied

by .retained earnings and
bank loans. The later 150 million

t:at

m

re¬
ex¬

is

no; coal

State

•

contracts--?'stockriders

in

Mexico.

New

j

•

*

contracted to

company

pipe line and deliver

a.

build
305

some

day to
subsidiaries of Pacific Lighting in j
southern

California./

In

1948

it

is completed deliveries to. Yjsipns of
preferred stock
California will exceed two billion^ ppitificate will have ta be modi cf. per day, about equally divided **iec*'
ke company s growth is so
between the southern California r?P!u teat
it is necessary to
companies and Pacific Gas &_ change the statistical-tests whicn
Electric. The total expansion pro- were set up in the certificate, in
order to avoid the relating of pro

*

;r'//>

forma interest charges to present

.,

For U"' S

•.earnings.
A .two-thirds
vote will
be necessary
'to change the pro¬
visions.

Rubber consumption decline in second half of 1958 is antici-/

Elenry

1 El

sizable

United

accumulation

man-made

its

own

needs

the

today has declining by 40,000 tons and manall types made rubber by about 24,000 tons.
Mr. Richardson.said this forecast
to supplythis material,' is based on an estimated decline of
about 12% in new car and truck

for
-

Co.,*

O., July 4.,.

providing a '
larger share of V

"Shipments of replacement tires
during the first half of this year
are
believed
to
be higher than
normal," he said* This is due to
advance buying in anticipation of

the

higher excise taxes effective July

■'"Man-made*,
also

world's,,

1

quirem ent

gram

a

s

the

t

cumulation
sizable

rubber
W.i £>.

of

world

Kicnardson

f

rubber inventories," he said.
"The increasing availability

rubber

$aid.

invei^oTes

"Further

increases

in

ventories of both crude and

NEW ISSUE

build-ups

in

addition
actual

over

i

CHICAGO,

111.

39 South La

to

total

record

be 1,430,000
of

&

Co., Inc.

to

sell

nor a

solicitation of

an

G.

Co., Inc.,
He was

offer to buy
-

»

"V"

;/r

(Par Value #1

These Securities

/o

7

:;

Per Share)

are

being offered as

a

Speculation

G.

ated

with

The

Company is offering to the holders, of Common Stock of El Paso Natural

Gas

Company and to the holders of Common Stock of Western Natural Gas

July

16,

Subscription Warrants to subscribe for 1,425,000 shares of
1 share for each 5 shares or

portion thereof of El Paso Natural Gas Company Common Stock and 1 share
for each 11 shares or portion thereof of Western Natural Gas Company Com¬
mon

Stock. An Additional

is also included in

subject

to

Subscription Privilege as described, in the Prospectus
subscription offer. The Several Underwriters have agreed

the

certain conditions to purchase at the subscription price shares not

subscribed for upon exercise
The

;

iSpecial to The Financial Chronicle;'

7

1956

Capital Stock of the Company on the bases of

Co.

&

••'V,

Company of record; at the close of business (3:30 P.M. New York Time) on

%

Reynolds Adds to Staff

in

offer

company execu-;

During the first, half of this
SAN
FRANCISCO,
Calif. —
the United States consumed; George Misumi is now connected
approximately 747,000 long tons of with
Reynolds & Co., 425 Mont¬
new rubber, about 27,000 tons less
gomery Street.
than during the first six months
1955, he said.

H. L. Jamieson Adds

'*

"Consumption

.

1,

of such Subscription Warrants.

Subscription Warrants expire at 3:30 P.M., New York Time, August

1956.

•

;

•

'

Consumption,

rubber declined

to

294,-

pOO tons,

a decrease of 38,000 tons,
January-June 1955.
for

Subscription Price $5.00

per

Share

-

ifapecial to The Financial Chronicle; / /

the first half of this

period of last year.

'V

man-made;

of

year increased to 453,000 tons, up
11,000 tons over the comparable;

"Outlook

:

;

year

over

James

Salle Street.

1,530.000

FRANCISCO, Calif.—Jo¬
Thurston is now associ-;

seph

ac¬

.

crude

Good-

formerly with Arthur M. Krensky

Capital Stock

:

of

—

Vacha is with Leason &

Corporation of America

i

rubber

that - may occur
Russia and China this year.

rubber during

and

(Special to The Financial Chronicle)

1,425,000 Shares

pro¬

(Special t<} The Fiw»ncial Chronicle;

SAN

York

consumption

of

Co.

Joins Leason Staff

/

:

• /

Harris, Upham Adds

of

man-

an

T>. '

Rare Metals

1

in-;

neither

: '

•

said.-'l'

-■

are

are

cumulations

&

body & Co.

'

Harris, Upham & Co.,
expected by the232
Montgomery
Street.
' Mr.
end of the year." He pointed outThurston
was
previously /with
that
these
expected
inventory
made rubbers

with

previously

was

Merkel

now estimated that total
consumption in the United

this year will

1S55

tive

55,000 tons," Mr. Richardson
..

highway

way.

tons," t^e rubber
of

paan-made rubbers in the past 12
months has brought about a rise
world

revenues

$3.72

were

about 38£ a
subject to re¬

Fullerton
Curtis

tons, down about 100,000 tons from

*7, the

/

>

about

gets under

States

ac¬

national

the

as

/Tt is

time,'"

same

permitting

the staff of Johnson E. Bell & Co.,
811 Manatee Avenue, West.
Mr.

of these securities. The offering is made only by the Prospectus.

inventories,

rubbe r*;re-

and,

April

aside

.

; BRADENTON, Fla.—Walter A.
Fullerton, Jr.. has been added to

a

tire

is

setting

share for

announcement is

any

lower fate of
for
automotive;
manufacturers now holding high
production, and
tire
production

said in Akron,

rubber

This

-

F.

B.

/;

Ventura

/

inventories.

of

President

Goodrich

rubber

rubber

W.S.Richardson,

world

of

/

*

13531

:

States

quantities

of

on

•

Paso's share earnings for the

12 months ended

The

in

basis at $5 a'share/

.

been actively

after

sufficient

of

The company has

plies to provide the usual future
reserves
to
guarantee
delivery

mils

,

Johnston Bell Adds

company about two. years
organized the Rare Metals
Corporation of America to; ex¬
plore and develop uranium, mer—
cury ore'and ether rare metals,
The stock of this, company is cur¬

"

and truck

car

'

(Special to The Financial Chronicle)

The

rently being offered to stockhold¬
ers of El 1-aso on a subscription

Hartman,

Boulevard.

ago

engaged in seeking new gas sup¬

new

'

/

'

OAKS, Calif.—Eva
joined the staff of

has

Idriss

M.

/,'//

'/C/ J'•

estimate made of?

•

/

.v;.■

•

Uniteu Carbon/

production. Increased sufficiency ofman-made rubber assures adequate supply for U. S. and per-

pated by B. F. Goodrich head, based
lower

1

,

.

(Special to The Financial Chronicle)

SHERMAN

has

In .1945gram,

million cubic feet of gas a

"

With Henry Hartman
*

.

.

the

,

'•

per

increase

.

„

Basin

-should

,

iiy.

economically

earnings

correspondingly."«

continue to increase steaa-El Paso produces some 25,000
/<?£expansion will be financed by
El Paso has already obtained;
sale of bonds and preferred barrels a day of natural gasoline,
available in that State and local iiFPC permission to»iiiciease de-^ gf^gk and from retained
earnings, butane and propane,' and to up¬
supplies of oil and gas produced liveries to California by 350 mil- y
V
grade these products and obtain
have been declining, while popu- lion cf. anj to other customers by /
Counting the second convertible a-better market the company has
lation was growing (in tie past 100 n illion cf. The company has;preferred - stock as common, tne •entered the refining and chemical
decade) about three times as last)now filed an'application with tne present; equity, ratio is 27%. .The fields. The market for oil prod¬
as in the nation.
The State is one Commission for an additional 150 fipt preferred, stock is only 8 /0
ucts,
mctor
fuel, jet-fuel and
of
the
oldest
gas
markets
and million cf. for California and is pt capital—hence the decision to diesel fuel is growing rapidly in
saturation is very high, Hence it preparing
a. 1 second
application .jf-ShO .additional
preferred. A the company's area. A butadiene
has been necessary to import in- for another 150 million;,
meeting
been plant is being built at Oaessa,
creasing
supplies; of
gas
from have been signed covering these cpyep *or
^
*:0 authorize Texas, the output of which will
Texas and
from
the
ban
Juan increased amounts. When tne pro.-./"ps issue, since the present Pro- be delivered to General Tire and
conditions in California

favorable

-r-there

share

pected to increase steadily.

rubber

consump-.

tion during the second half of this

indicates a total of 683,000
a
decline of about 64,000
tons, with the use of crude rubber

year

tons,




SAN FRANCISCO, Calif.—John
M.

Schlemmer

with
Russ

H.

L.

is

n.ow

connected

Jamieson.. Co.,

Inc.;

Copies of the Prospectus may be obtained from such of the Several Underwriters
as may lawfully
offer these securities in this state.

Building.

Joins John M.

Flynn

White, Weld

(Special to The Financial Chronicle)

SANTA
David

BARBARA,

Calif.

—'

A.

Berry has become con¬
John
M.
Flynn &
Company, 3680 San Gabriel Lane.

nected

with

July 18, 1956

&

Co.

:'/■■

12

The Commercial and Financial Chronicle.. .Thursday, July 19, 1956

(284)

of

capital spending above the $1

billion

New Methods and Procedures

the Railroad Plant

RICHARD G. MAY*

By

,

Maintenance Department

Vice-President, Operations and

Association of American Railroads

reliance

by

miles
The
in

expanding

with
It

is

has

taken

industry

road

.

the rail-

within

olace

the

during

in 1955, However, the rate

4.21%.

according
bc£h

to

handled

and

distance

hauled"

ag-

gregated

624

of

Upward Capital Expenditures

ment and improvements to roadwaY and structures in 1955 were
a,fcout $908
The trenc!

13.5%

million in the first half. We hope

the

conditions will permit the increased expenditures throughout

levels

of

lf/52 and 1953.
Revenue

w

,,

that

Of

handled

by

'

address

An

.

19o4,V. the

'

level

the vear 1956 and raise
—-—
-'i
'

pas-

_

volume!

million

$524

as

spent as compared to $384

were

miles totaled 28.5 billion—

smallest

upward

finitely

over

and

slightly above
May
*■'

-

tne last half of the year was def-

increase

1 9 5 4

below

increase

since

29th

Annual

by

before

May

Mr.

M.elin,

of

the

Mechanical

.he

the Division, Chicago, June 26, 1956.
1

A

h

j

an

any 01

NEW ISSUE

'•

these securities.

July 18, 1956
V-

:iV-<

•

4S

*

*

•

*•'

'■

4 '•

•

-v'

/

.'v •'

:

Committee

Teoort

that

issume

rail

will

traffic

in-

share-

corrected

the

even

the

of

areAto

we

present

total

If

if

percent-

intercity freight

service

is

of

one

be

influences

traffic it

Industry and perhaps to
extent

by

corrective

the

*

large

a

actions

of

A;\

:

not

only

and

and

Ripley & Co.

Kidder, Peabody & Co.

Stone & Webster Securities Corporation

Blair & Co.

Dean Witter & Co.

Central Republic Company

Incorporated

Lee Higginson Corporation

!

Incorporated

F. S. Moseley

(Incorporated)

W. C. Langley & Co.

,

Shields & Company

& Co.

in

Estes&Company,Inc.

.

Robert W. Baird & Co.,

.

Beecroft, Cole & Co.

Laurence M. Marks & Co.

Tucker, Anthony & Co.

Spencer Trask & Co.

applies: to

,

Stern Brothers & Co.

G. H. Walker & Co.

Bache & Co.

Irving Lundborg & Co.

H. 0. Peet & Co.

William R. Staats & Co.

Shuman, Agnew & Co.

_

Schwabacher & Co.

Barret, Fitch, North & Co.

so

cars

to

William Blair & Company

Hayden, Miller & Co.

Corp.

E. F. Hutton &

Foster & Marshall

Riter & Co.

Davis, Skaggs & Co.

Seitsam-Hanni & Co., Inc.

First Securities Company of Kansas,Inc.

Company

Lathrop, Herrick & Clinger
Incorporated

.

,

_

Merrill, Turben & Co., Inc.
Reinholdt & Gardner

Prescott, Shepard & Co., Inc.
The SmaH-Milburn

Company

Ranson & Company, Inc.
-

-

Smith, Moore & Co.

Incorporated

Stern, Lauer & Co.

Thomas Investment




Company

keeping

and

Frank N. Warren &

the

.The

.

ity.

stations

constantly

higher grade of abil¬

a

Thus the management of
railways grew rapidly into a com¬
plex organization, requiring the
highest ability, the largest experi¬
ence and the best training."
.

.

.

There

be

can

doubt but what

no

the mechanical officer today must

have
to

highly specialized training

a

with the

cope

that 'arise

lems

and

equipment
Federal
and

other-

only

the

a

with

purchases,

assured.

be

•

-

neeting

were

of

the

end

of

of the

aware

<

In

the

situation

spring

and

during
special

a

was

>

aorted

for

the

:ober,

at

which

reached

their

ant

is

last

week

time

highest

in

Oc-

loadings

for

point

time

and

cars

that

it

oated

gratifying

order

of bad order
and

was

month

of

The

6.000

cars

antici-

cars

ownership;

the reduction
which

will

the

in

add

to¬
bad
con¬

siderably to the fleet of service¬
some

cars,

of

proach

should

the

help

problems

as

alleviate
we. ap-

the heavy carloading

riods of the early

fall of this

nf
of

of

pe-'

year;

cases

leasing
in

New

and

The
t

,

.7

of

Boston,

load:

on

ficers
of

minal

of

to

Safety

a

Law,

'V

well

as

other

of

taking

are

indus¬

advantage

of

at universities and

courses

training
vided

courses

of

in

history

but

the

Mechanical

tomatic

the

best

coupler, and settling of
railway strikes by arbitration.

them.

talent

While

depart¬
the

super¬

of railroad¬

continue

to

that

feel

I

the
pro¬

with

progressive

will

problems

the

railroads

and

the

We

by

have

mechanical

our

most alert

vision

adopted

railroads

the

ments

ing.

have

within

Division

we

have

available

to

solve

we

take pride in the

accomplishments of the past few

reviewed

carefully one
might think the editorials were
dealing with the same problems
as
confront the industry today.,
However; conditions have changed

'

management

adoption of air brakes and au¬

Unless

the

cooperate in preparation

individual

points.

Profession."

Appliance

for

departments of their organizations.
These courses in conjunction with

and

then President of the Npw
York Central road, on "Rail¬
As

assign¬

been

a continuity of
good management in the various

pew,

roading

and

not pos¬

colleges to insure

Mr. Chauncey De-

arttole

not

managements

special

street railways.

division

to

tries

locomotives from terterminal by changing
at

crews

had

evidence.

as

of operation.

passenger

could

handled these

it

Railroad

iy

The operation of both freight

safety

offices

willingness of the mechanical of¬

The single unit steam car with its
economy

AAR

the

if

ments

in. the

rules.The

sibly have

study

some

of

were

of studying

case

proposed- changes
staff

Adoption of longer rail by welding of joints and was the practice

qualifications A

in the

appliance

railways

v

77:;;.;

a

.

samer

necessary

of an all
steel 50-ton car as compared to
the
35-ton
wood
constructed
car.

required

covering

The work
detailed

as well as.-cwisid-^
experience with,
motive
•AAAA-A-A 77

erable

York, Albany, Buffalo,

economic

Interstate

knowledge • of;

rnnri*

electric

the

Commission

proposed rule changes.

WnJer^ roads V-nt
rl~
not re
Eastern roads, not recars at, Buffalo, N. Y.

Competition

have
been ; called
in the preparation

before

..

Commerce

4.
to

:

to assist

upon

Interstate involved

failure

Eastern

of the AAR Mechani¬

Division,

power.

suit

The

increased

order

during

June.

gether with

cal

The

new

that deliveries would reach
than

-nore

cars'by

the

committees

cars.

120,000

its

to

reached

now

presently

are

on

is

have

we

he goal of 4%
There

in ownership

upward

to

_

Changes Cooperation

last year, Tnany. of the
officers,, members of
the General Committee and other

vear?

,

.

concept* of

some

mechanical

n~>A

■

of
se¬

bill to amend.- the
Commerce Act.
■

Delay

the

called in Chicago on
Tune 24, 1955.
An average daily
hortage of 22,659 cars was re-

jf

^
A

60

agreements

Rule

World'5 fo»
1898 there were featured
following.
-

^

{

t

iournals of nearlv

regulations,
with organiza¬

.

*

trade

the

State

and

problems.

system of
transportation

strong

would

con¬

the value
It is his
responsibility to provide equip¬
ment for safe and expedient serv¬
ice, and service is perhaps the
outstanding 7 requisite
demanded
by both shipper and consignee in
order
to meet their marketing

with

financially

in

tions and crafts; but he also must

Corn-

allow

prob¬

numerous

not

nection with recommendations for

e^'^Btv to
top
Rates would be

carrier

ade-

Roads

at

Member

early

able

Company

The

d^mande^

conditions

Cabinet

would

common

to

as

officer.

1,700,000

The

\ssociation

?ars

The Columbian Securities

.

.

istration.

cost of providfair return, and
the maintenance of a modernized

well-maintained

Executive level.

the

lote

Lester, Ryons & Co.

Renort,

ing service with

Incorporated

Alex. Brown & Sons

.

transportation

the

competitive field.

which must be considered

riousness

Hornblower & Weeks

and its
competition with its rivals, com¬
pelled
traffic
departments,
in¬
cluding bot 1 freight and pas¬
senger.
The terminals called
for special skill in their admin¬

others.'

be lower than would

m'+toe

of

mechnical

Incorporated

Corporation

'of

cost

roitoo^'f

the

corrected- within

these

under

busi¬

enormous

company

of good public relations.

1955.

Glore, Forgan & Co.

The

each

ommended'in

be

1953

Eastman, Dillon & Co.

of

ness

must

The fleet of general service; cars
has decreased
from
1,776,000 in

Coffin & Burr

departments.

•

organize

have

it

The First Boston Corporation

to

necessary

be possible. The enactment
of this pending legislation, as rec

actors

legally be distributed.

it

wise

will

provide
i satisfactory service is generally
accepted as. the responsibility of

Copies of the Prospectus may be obtained from any of the several underwriters only in States in- -which- such, underwriters are qualified to. act .as

Union Securities

found

ever, there are factors which must
be evaluated and conditions which

Tuacy of the fleet is of economic
onsideration and involves many

Smith, Barney & Co.

increased, the railway companies

that

he

Lehman Brothers

than

on

the

total

oower

Harriman

economically

better

article

the

freight carrying cars to
neet shipper requirements, j The
>roper
maintenance
of
motive

Goldman, Sachs & Co.

do

can

other

a

and

leet

Blyth & Co., Inc.

it

data
con¬

the

.

is

transportation

of

in relationship to increased
production and the necessity for
increased
transportation.
How-

idequate

may

of

which

more

The

be served best when

kind

ices

improvements.

to-

permitted to perform those serv-

Com¬

railway systems ex¬
panded and the Tailway mileage

of

S'S
each

all

"As

a

We in the railroad industry believe that we have every right to

roadbed.

and

currentlywfth

^^ile we to°k upon the probnaintaining
dependable
freight leni.s c°"frontine
railroaH mrain schedules but
providing an^ustry
today
without
precedent,
it
is
interesting
to
review
the

$8.75 par value

Prospectus

thf public

that

motive

Profession" in¬
cluded the following:
;

refer-

of
forms

Better

have required im¬

"Railroading As

Cabinet

availability
alternate

o*

to

Corrective Actions to Be Taken

Common Stock

dealers in securities and in which the

today's

rail

proved

transport, Federal policies should
be amended (1) to permit greater

.

Service

j

the

market.

us i

trans¬

munications, signalling and
processing have progressed

Report.
The Report
that,
in
conformity

cmnhanzrs

ton-

individual railroads.

;

to

Set
same extern as other modes
of transportation.

should

per

Division,

made

was

with

and increased population

factors which

Price:$23.25

Mechanical

ence

7;

efficient

and

the competitive

power and cars

loadrouting of shipments,

and

in

stay

portation

At the last annual meeting of

"

Company

to

export

on

economical

operation which has permitted

by carriers, retime

A.v7;

expectation

more

,

traffic.

The Kansas Power and Light

free

of

A7

:

1890's.
The improvement in
equipment has contributed to the

the

covering

vv;A:';v-'-7/s.

:

of
car¬

dealing

are

plant has taken place beyond r
of the writers of

the

of 624 billion in 1955 was reliance on
competitive forces in
improvement over the years of transportation pricing, and (2) to
1952-53-54, it reflected a continu- assure the maintenance of a mov¬
ing loss in the percentage of in- ernized
and
financiallv
stron*
tercity freight traffic transported gygtem of common carrier transby rail. It is estimated that rail- portation adequate for the needs
roads carried approximately 50%
0f
an
expanding and
dvna^r
of the total intercity freight trafeconomy and the national secutic. In other words, we have not
rity.
shared in the increased producTh
essential Drinciole lindertion due to the expanding econlying the
of the Cabinet
ony

we

•The improvement in equipment
and

jmport unloadings and

the

an

unregulated

Improved

Should Be Allowed to Compete
More Freely

Started

revenue

with

Equipment and Plant Greatly

miles

age

270.000 Shares

effect

|n

number

retain

"

*

the

ings

crease

ofler to sell nor a solicitation of offers to buy
The ojjertng is made oniy by the Prospectus.

This advertisement is neither

orease the availability of cars,
The Bureau of Safety and Service,
ICC, has also considered the nenow

not

competition

today.

and

Freight Not Sharing Growth
total

the

mittees of the Operating-Transportation D 'vision and ,jecommendations made regarding
operating practices modification;
°/ demurrage tariffs and other
,tems which they believe will in-

per

the

rather

been made by a_ppropriate_ com-

duction

compared to 17,173 in 1946.

Rail

but

and

m0vement of cars

1946 when tne total

Zt"T
J',?8™'"- Whieh
about iy«>.

is

competition be¬
which 'wc tween carriers of the same mode

which

freignt train hour to¬
37,057. The steady climb is
attributed chiefly to the dieseii-

•

,

j' Capital expenditures for equip-

billion in 1955

_

age was

as

<

it

and

of

riers

are

noticeable

a

In 1955 the aver55,662 and shows a steady

While

ton¬

nage

—an

2.5%

reflected

by

means,

competition

question

subsidized

taled

of return on investment was only

traf-

measure

fic

senger.

freight train

per

the

cessity of increased utilization, of
freight cars and service orders

.

The average net ton-miles per
million, or 7.8%, over the year
to tre
s
1954, The 0perating ratio was re- freignt train hour shows a corr-tr,n '
duced from 78.80% in 1954 to ,ponding increase—25,268 in 1955
Revenue
ton75 66%

(j.

;-•••

awa

.

...

1955, especially as

'Richard

8.27% per-

to diesel and

ton-miles

miles

forthe year. 1955 increa^d s?ss

year

was

improvement

railioads since prewar 1910. Operating revenues of Class I railroads

that we review what

well

hours

by steam power.

hour again

fair return.

a

locomotive

of

1 he

perform those services which it can do best, and provide
in keeping with cost of providing incomparable service

tion to
returns

significant change was

.

Claims these amendments

and defense.

economy

most

yard service where 91%-of the

formed

transportation costs, allow that kind of transporta¬

will lower

In pas-

service 83.51% of the carhauled by diesel power.

credited

competition in transportation pricing and assuring maintenance
of a modernized and financially strong system adequate for

12.49%.

steam,

another,

to

as

pres-

freight carrying cars

.

was

total

upon

—

^

of

can, reduce shortages^during^ the
peak loading season. Studies have

power

senger

ommendation of amendments permitting greater

is

1953.

continued but at a
pace
as
eonsiderably
reduced
u^pai-cu to former years.
Gross
ton-miles hauled by diesel was
tive

fleet

ent

diesel-electric mo-

shift to

85%;

loss of inter-city
freight traffic in part on inequitable regulations among for-hire
carriers, in urging adoption of Cabinet Committee Report's rec¬
May blames the railroad's continuing

Mr.

Increased utilization of the

main-r

was

through

1948

from

tained
•The

To Improve

which

mark

years,

•

we

will

continue

and, if given
chance, can offer a
is incomparable. ...
gress

.

to

pro¬

reasonable
service that

a

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

(285)

it would probably accentu¬

many,

Sterling Remains Inflexible
By PAUL EINZIG

Dr Einzig reports

sterling-dollar
numerous

British Treasury is determined to maintain
strictly

rate

Economic

Terms

courses.

Minister's

"

limits

2.78-2.82

highly unfortunate the

recent

plea

open

British

for

Macmillan

has

has

been

the

assumed

of Chancellor of the
the
'■

policy

Britain

'

■

post

Exchequer it

declared

of
to

maintain

existing

# V-;'>

While

Mr.

Butler

w as
V'1

time

*

•-

.

a

7 to

t

Paul

Einzig

Istanboul,

hat

has

mined

to

dollar

rate

limits

of

in

cause

ling

repu¬

the

is

rer

gested

of

of

view of

the

not

is

a

;

He

10%

Deutsche

hard

a

flexi-

entitled

to

he offended

his

opinion.

Where

of

the

to

took

to

change

more

depreciation

commit

Which

him¬

of

the

convenient

point

10%

would

get

British

lieve

that

stances

vate

in

the

the

;

against the rules that

in¬

of

attempt
that

this

Govern¬

existing

of

the

Com¬

tion

of

living

change

a

Macmillan

of

had

He is engaged

Itfwould

in

as

the

This would

prices

as

value

o'

moderate

wages
*

inevitably
in

:

of

cost

the

also

from

wages

Federated Plans, Inc., 21 Elm St.
Three With Gibbs & Co.

7

(Special to The Financial Chronicle)

the

WORCESTER,
Mass. — Sidney
point of view of*'
maintaining united front of free- Haywood, Zenon W. Klementowicz
dom-loving countries in face of and John F. Warner, Jr. are now
the

common

the time for
lateral
as

was

recent

This

enemy.

trying to

connected with Gibbs & Co., 507

not

is

Main Street.

uni-

secure

advantages by such means
employed by him in the
incidents

Thanks

policies,

tige has been
earned

v -

mense

that

were

Germany's presfully restored. He

now

goodwill

exists

in

'

•

♦

LINCOLN, 111.
opened

—

&

Co.,/Inc.,

(Special to The Financial Chronicle)

k

Mass.

—

M.

George
+

5

.7,'

Brown has become connected with
Hamilton

Management

Corpora¬

127 Fremont Street.

Two With Inv.

at

,

;'-Y

Unions

j

Bernard Wolfe and George Ma-

...

loof have
of

been

Investors

added

the staff

to

Planning

With W. C, Gibson & Co*-. 4ion«*of~. New

Coroora-

63

Inc.,

England,

Devonshire Street.

(Special to The Financial Chronicle)

CHICAGO, 111.—Joseph M.Mar- *
torano
&

is

with

now

W.

Gibson

C.

Simon E. Dunn Opens

Co., 231 South La Salle Street.

(Special, to The Financial Chronicle)

With Link, Gorman

Dunn is

(Special to The Financial Chronicle)

CHICAGO,

111.—Henry

>•

fey has joined the staff of Link,
Gorman, Peck & Co., 208 South
La Salle Street.
7

This announcement is neither

offer

NEW

buy

to

■

Simon

the firm

of S. E. Dunn & Co. Mr.
Dunn was previously with B. C.
name

Morton & Co.

sell

to

nor

a

solicitation of

an

of these securities, The offering is made
only by the Offering Circular,
t-

any

ISSUE

11,700 Shares

BLACK HILLS POWER and LIGHT COMPANY
Common

to

Stock

demands.

long the increase in
counteract any tem-

Value

Par

$1

pet

share

i

porary advantages British export¬

Rights, evidenced by subscription warrants, to subscribe for these shares
have b<*"n issued by the Corporation to holders of its Common Stock,
which Rights will expire at 3:00 P. M., Central Standard Time, on July
31, 1956, as more fully set forth in the Offering Circular. Each warrant
gives the holder the additional Right to subscribe at the same price,
subject to allotment in the event of oversubscription, for as many more
shares as he may elect.
1
'

|Second Equipment Trust of 1956
Equipment Trust Certificates

Subscription Price $24

per

share

**

(Philadelphia Plan)
stockholders is not underwritten. The Corporation,
compensation of 25<f per share to security dealers
who are members of the National Association of Security Dealers, Inc.
who assist stockholders in the exercise of their warrants and whose
names are shown
on warrants which have been
duly exercised.

The
To

mature

?114.000 semi-annually February 1, 1957

To be guaranteed
1
,T

r~
,

•

"

*

"7 *s

"ry -

Priced

> -

to

unconditionally

as to

to

August 1, 1971, inclusive

payment oj par value and dividends by
Louis Railroad Company

The Neu- York, Chicago and St.

yield 3.25%

to 3.35%,

according

to

maturity

offering

to

however, will

Certificates tare subject

to authorization

by the Interstate Commerce Commission

HALSEY, STUART & CO

pay

Copies of the Offering Circular may be obtained from
the

Issuance and sale oj these

undersigned only in those states in which the

undersigned

may

lawfully offer these securities.

BLACK HILLS POWER and LIGHT
RAPID CITY,




:

.

COMPANY

SOUTH DAKOTA

July 12,- 1956 6

July 16, 1956

.

E.

conducting an investment
from
offices
in
the

business

offer

an

—

Guardian Building under

Cof-

B.

Mich.

DETROIT,

to

wouid

"

Planning

(Special to The Financial Chronicle)

Broadway under the direc-:•

tion cf Carl R. Dehner.

,

V*

.•

BOSTON,

Co.

office

:

n,

With Hamilton Management

tion,

Tabor &

branch

a

Goddard

.

•

Tabor Onens Branch

r00V2

*

„

world,

by resorting to aggressive tactics
7
7
*7-*
against a friendly nation.

has

i

85 Devonshire Street, members
of the . Boston Stock Exchange,
He was formerly with Schirmer,
Atherton & Co.
"...y 1
;
,

Germany

western

v

' BOSTON, Mass. — William; G.
Birtwell has become associated

with J. H.

for

to spoil the im-

toward

the

n

u

"

.

(Special to the financial chronicle)

Erhard's

admiration

; ;

'

v

7

J« fl. Uoddard Adda

4

our

■y

"■?.

;

:
*

•

Professor

to

imported

very

York, Chicago and St. Louis Railroad

3%%

F.

materials.

being able

Trade

Mass. —Leo

Cronin has become affiliated with

of weakness. But his recent

in¬

the. end of such

for

their

the

of

raw

mean

exist

persuade;' the

So far from reversing

rise

result

a

stuffs, and

hopes

of

thd accumulation of gold by Ger¬

Mr.

firm line.

further

a

food

aggra¬

in favor

Erhard's

the international

of

crease

existing one-sided trend
trade

Professor

enforce

to

a

difficulties,

at

r

to be¬
circum¬

would

(Special to The Financial Chronicle)

WORCESTER,

action is open to. criticism not only
from a British point of view but

sterling by 10%, or even much
less, would greatly aggravate his
cause

.

nqt qnly as a

the extremely difficult task of
stabilizing the domestic va'ue of
sterling following on a period of
steep rise in prices. A deorecia

change suggested by

of international

source

a

in

sterling

material

of

policy,

to take

Germany would
war

With Federated Plans

freedom
and
democracy,
through the restoration of Ger¬
many's economic power. Thanks
largely to him, Germany has become a source of strength to the
free
world
instead
of
being
a

Sterling Area and he

$4,020,000
New

discuss

*

in Britain.

arms

Erhard

Germany.

ses¬

occasion

other

approval

face

Before

•should regulate relations between

the

be considered

In

otherCEnroas sterling

lower price.
is every reason

There

could

not

cause

Con¬

private

first

great service,

and Boston

Exchanges.

*

Germany is
placing a sub¬

that

mean

the

the

British fpolicy but as a Common¬
wealth policy.uv ■ 7 7:;
?J. 7'7

as

of

depreciation

the 10%

•

he

with

the

now

might

convenient if,

stantial order for
A

strictly

a

was

present parities and with its pres¬
ent limits of its fluctuations may

currencies. As far

the

at

a

of

monwealth statesmen so that1 the
under "maintenance
of ; sterling
at
its

was

rendered

the opportunity for explain¬

with

is concerned this would be all the

on

the
the

bers of the New York
Stock

Erhard

is understood

exactly

&

Mac¬

same

London

Commonwealth
he

Mr.

fool.

no

BOSTON, Mass.—FranK JEL Bur¬
is now with Draper, Sears
Co., 50 Congress Street, mem¬

rows

understood that his statement met

in¬

of ;; reva7uation
of
the
Deutsche mark, there should be a

more

recent

of

And

*

Ml*.

achieving this, especially as it has
conclusively proved the possibility of assuming power and prestige by peaceful means. It would
be a thousand pities if Professor

flexibility
of sterling, which was formerly
supported
by
Commonwealth
Governments is, in existing cir¬
cumstances, impracticable.
It is

stead

pean

For bn the

ing why the idea of

be untenable in the long
From his point of view it

would be

says.

scheme.

is

(Special to The Financial Chronicle)

Professor

only to Germany but to the

the

Macmillan

the

ments of the

prove to
run.

he

said

This

matter

firmly denied,
Profesc,or Er¬

were

Possibly
a

of

Rumors according to

solution

reluctant

to

curren¬

Mr.

Ministers

which

on

ex¬

same

that

have

sion.

change,

a

moment

has

has

ference

Ger¬

has

intention to de¬

thing when addressing

Deutsche

the

secure

this

Professor

Beyond doubt Professor Erhard

of

Govern¬

consider

Joins Draper, Sears

7

would

folly 'for

sheer
to

it

Beyond doubt, Professor Erhard

sound

to

fact

change the

result of such

a

wruM

is

self

In

other Western European countries
ease
their
position
by

to

favor

Germanv

value

however.

Germany's strongly favor-

taking advantage of such
bility.

and

consideration

the

Mark.

the

smaller euanfifv of German

which

sug¬

on

in

Erhard's
millan

evidence

Conference

be-

strange
by

the

well-

been

In: the present instance,
however,
there
is
independent

Prime

Now that full emplovment

flux of goM.

flexible

of

like

trade

reached,

ports

Germany

Erhard's

explained

for

depreciate their

until

means, what
occasion
of

'

would

of

mark. As

should

is

other

sweeping
pound
might

the

practice

a

change:

a

level.

simply be¬
occasion for it.

able balance of payments he con¬
sidered
it
advisable
that
the

?

Britain's

Really Means It

true, it has become

or

cies

maintain surplus, the obvious way
of do^ng this would be to raise the

■fluctuations, but pointed out that
;
Germany would not avail herself
of the possibility of changing the
value

ster¬

case

Macmillan

value

If

,

considered.

limit

a

to

from

exchange

From

result of the prompt

a

ments to deny any

scare,

very7 strong

difficulties,

recent

was

The

Learning

established

on rearmament, the quan¬
tity of her exports might decline.
Professor
Erhard
wants
to

present
$2.82. It is
was

As

J- It is

embark

sterling-

its

European exchange rates
be

any

been

Added

many.

deter¬

in

establishment

should

not

Professor

ing the British Government to
change its policy. Some time be¬
fore he wrote to Mr.. MacMillau
suggesting that on the occasion of
■■the July Conference of the Or¬
ganization of European Economic
•Cooperation in Paris, the idea of

'

has

bavour

Minister for Eco¬
nomic Affairs, Professor Erhard,
recently strange attempt at forc¬

Western

sterling

lower

adoption

^ The Crerroan

the

acute

its

the

pound.

Mr.

assume

anticipation of

and
determination

Suggestion

-

to

strengthen the case in favor of
allowing sterling to decline to a

the

is

noncommittal.

sweeping flight from

a

publication of this denial, sterling
remained substantially unaffected
by Professor Erhard's maneouver.

have

must

flight

and

no

It

when

$2.78

this

Macmillan

diate this idea

between

but

hand.

especially since in

lately.

maintain

there was

Mr.

reasonable

another

economic

'true, this
publicly
reaffirmed

times,

that

the

sterling he

definitely

advice

Press

anticipation of a discus¬
sion of such a plan would result

permitted fluctuations of sterling,

this

the

to

receiving his reply, Pro¬
hoped to force Mr.

terms

Treasury

at

very

posal.

that he

jected

disclosed

known

fixing
'the

be

have

to

for

was

Fund

to

disclaiming any intention of
discussing Professor Erhard's pro¬

had

limits

chose

ment

he

Bank of England would favor the

wider

Monetary

he
and

reply

resulted
in
a
flight from * ***„pound last Summer. Although the

of

the

at

the contents of his letter. He must

appeared

those favoring
a
flexible

Dr.

intention

friendly Governments is that be¬
fore
receiving
Mr.
MacMillan's

before

inclined

to

his

from this
experience, Mr. Macmillan lost no
time in issuing an emphatic state¬

Macmillan's

one

listen

was

fessor Erhard

pari¬

ties.

about

result

depre¬

a

Having regard

these considerations

Macmillan

International

would reject the plea.
There can
be no doubt that in publishing it

sterling
rigidly at its

reckoned,

Mr. Butler

ago

year

secretive

policy.

LONDON, Eng.—Ever since Mr.

44

have

the
,

Erhard

to

When

a

through

ciation of sterling.

impending annual meeting of the

in

might gain

ers

*\

however, without Mr. Macmillan.

mons

German

change

Professor

questioned in the House of Com¬

despite

for flexibility. Cites difficulties entailed in

pressures

alternative

within

.

.

it,.,77"

ate
;

12

..

Liberty Bond Sale Campaign
Created Army of Small Investors
.

We received these

reported.

reports

regularly

lists

check

to

bond

submitted

to

Our

y

practice

describing how the sale of Liberty Bonds marked the com- V
mencement of a large army of small investors in America, Mr.

•

Within

government's;
publicity, cooperation of banks, stockbrokers and others for
achieving 22,777,680 subscribers for the fourth Liberty Loan—
with 59% subscribing to $50 bonds. Recounts method suc¬
cessfully developed by brokerage firm to purchase baby bonds,
for those wanting cash, and converting them into $1,000 de¬
nominations for sale

now

000

people

who

do

I.

War

the

in

be

therefore

can

dividual

comparatively few of
the small
bonds"
which the government is currently
issuing realize that popular participation in government finance
received its big impetus when the

were
;; i

the

and

had

done

the

through

banks,
other institutions,
estates
oiner
insmuiions,
estates
uanxs,
and
wealthy
individuals.
The
earlier bonds

issued

were

in

where

cou-

nations.
A

vpar

nr

to

August,... 1955. At the time, onethhd of the company's buildings
were

destroyed and another tnird

were

so

1.io Tnl i

t

Iuimnatin£ Company to split its
ha^^and fo issuea50^000

^are"

4 35%

of

stock

preferred

fbaFe®1(°* ^r vfitte

Thp

£pre$s^
LP fa^
£ facilities

rnmn^nv

°enerat-

s

rnmnanv

2ifnTa
? in

has

new

started

ron-

branch

to

Rioomfield and to

be

con-

?f_tbe se,?es b/ok,e tinn at thp timp and has heen able tain
feet yx
of
ta111 about 2,500 square xcc«.
w J
" to comoletelv rebuild its nhvsical *l6or sPace- The new branch will
?hlt'V *We/e
t!6!] oronerties without outside finan^- be air-conditioned and will intheme that just as it had F?P<£elude drive-in banking facilities.

'

b-i? :^ubsGr.lb® J°
a? ^a nP ^ ?°
b«Y
* thfn in the market and help
government's credit

^

-"PPoii uur governments creaii.

in
thp

i

-

One day, the
a
letter from

.,

aeain

was

®

nrieinallv

established

manufa'cture

of

machetes,

^olf ntoks6hatchet^cane

A

firm* re-

knives

other products, a

large part of which is for export.
Tbe company employs about 350

„

It will bring to 23 the total number of offices, in 15 communities,
q£ Connecticut Bank>
Hamilton-Standard

The

leader in th-

axeg>

This publicity had one curious JkUsh hooks'and

sequel.
ceived

bv

and

eomnanv

a° Xid

d°^?+"d,„w0uld Plobably P^ove

profitable.

1956

January

stored

Anril

AP^.the
^ompany^was^
again
operating at
a > profit.; Collins,

^lso, that it was a safe thing to

We

^

^

The Connecticut Bank and

badly damaged that they

had to be completely rebuilt. The
company was fortunate to be in a

1920, Liberty Bonds suffered
a
decline in price.
Issued

a*

their

of

dispose

to

go

Bonds of the Liberty Loans.

bnWa

cr.

In

quite

bonds,; might be-victimized, the
firm in,which I was then a partner set up the machinery to provide a good market for the Baby

form of $1,000 denomination
/'(some
500s)
and
in
registered
'form of $1,000 and larger denomipon

a

Another Advertising Campaign

'

'/

...

.

annual

The

a

stolcni had perfect titIe.

patriotic enthusiam, had bought
-Liberty Bonds, became pressed
' for
money and
sought to turn
their bonds into cash., Realizing
-that
large piupoiuun
proportion vl
of .uu
such
tnai
a
xaige
holders,
without
knowledge of

>

been

was

As time
time went
went on,
on, it
it naturally
:As
naiuiau^
happened
that
many
who, in

government floated its

bond, giving

the bond, even though it had been

Ba»y Bonds

\

Theretofore, government financing

,

.

.

*

issued!

Co^issio^^

exDansion< o^lts

over

that

I.

*

rnnnprtirl.x Pnhlip TTtimi

transmission and distribution facilities' The Proceeds of the Pre~
ferred issue will be used to defray
P
*be c
tilities.

Developing a Market for

|

*

*

*

*

*
.

at wriagepori at an
estimated cost of $14,4u0,000 and

Britain.

Meanwhile

later.

the

he

me
the

uuiers
others

-pointfto^dvise thYcustomer thaf -tjUmt^in^Cd^
suffered
Ls the bond
nelXble
d^age ^ounSS $8^0?^
fS SSod of

25,000,000 people
holders of Liberty Bonds,
is

mate

United States entered World War
I

for

were

was

about

of

cost

a

iu
to

report of The Col-

At the end of the war, one esti-

the many who invest in
denomination "savings

liberty'..Loans.

for* that
bonds*

subscriptions

59%

Issue,

sun-

that

roised

Of the in-

Liberty Loan in 1918.

World

remember

not

It

him

see

took

that

him

22,-

were

777,680 subscribers for the fourth

115.000,United States

approximately

are

inform

and

aress

would

there

Actually,

and

1

at

$1,500,000
and provides 220,000
square feet of floor space, all on
one floor. The new plant will em-

Grover
another

minutes,

Brown

new
aluminum paneled

is

constructed

lease
lease

ior
for

portions not leased to Colt's and
building to Pratt and Whitney.

pioy about 700 persons and will
plain-clothes
detective
arrived. be largely devoted to heat treatWe brought in to them the man
jng operations. The main plants
who -had
presented
the
bond. 0fi Fafnir - employ
gpme
5,200
Brown would question him briefly workers in a total of about 950,000
making note of his name and ad- £quare feet of floor space in New

the Exchange.

on

bond.

few

a

Cleveland

he
It has been estimated that there

which

avanauie
available

plant in

new

a

Newington. /. The
We
and,

customer

from another roona, telephoned to
First
Precinct
Police
Station,

singles out the country's receptiveness,

Dresser

opened

xias
has

uompa»y
Company

wearing
Bearing

Fafnir
j<ainir

v.
this.

-was

the

with

stalled

In

About

US.

recently

pona.

^

Connecticut Brevities

and used the
number every

by

^

DRESSER

By GARDINER S.

-

Thursday, July 19, 1956

...

,

were

-

and Financial Chronicle

The Commercial

<286)

14

Divi-

sion of United Aircraft Corpora¬
recently announced plans

tion has

plant facilities at
in Windsor Locks

expand its
Bradley Field
to

by about 50%, and to add approxyear.

Reginald
urged to

prevailing price-or ?>i,uuu oonas
on the New York Stock Exchange

McKenna,
had -been
include Baby Bonds in

the British

sition did not

appeal to McKenna.

When the United States joined the
Allies and began planning the fi-

popularizing

issues
and
the
Treasury
nppnrrbnoiv
/
preparations accordingly.

tellers of these Baby Bondi

made

nrrnprstirmc

WoOO^ 8- '* Certl£led
Checkt for
- "t

„

we

>

not read the financial

knew, did
>,

.

Of course,

this

result

pleased

we were

of tour

plan

particularly receptive to this
The

idea—advertising first
page, foot of column. " Yes, ;we
realized, everyone said that nobody ever read those fine nrint,
two
and
three }line insertions,
Nobody ever did except when

where

evident.

needed

to

public

could

and

war

:

those

was

funds from

information

was

bonds

that

All

secure

large
and

pro-

America

gravely concerned over the
Patriotic fervor was every-

were

war..

the

of

people

advertisements

had

some-

thing of especial personal interest to the newspaper reader. Then

that

around

are

discussing it.

r

i

I

el

rx

Fraudulent

x-x-

bought

could be obtained.

Certified Check

in

those who otherwise would

both

|

/

'

'

sciously

see

notices

would

; them.

publicity provided

information.

committees

Government

joined by. the
banks, stockbrokers and others in
were

directly
and
urgently
subscriptions. In the first

but.

pass

uncon-

such

over

consciously

see

The words, Liberty Bonds,

in our text would focus the attenHon

of ; those

having

Liberty

Bonds on their minds,

ts

"Did

,

vou

^

about

notice

this?

chap gives hi^address
Delivery, Atlanta, Ga."

We

Liberty

the

tried

plan.

It worked.

writer,

of

owners

was one of a squad in an
automobile in Times Square,

night, accepting subscriptheatre and night club

tions from

an

At

order

street

4:00

for

a.m.

he

received

$100 bond from

a

newsstand

a

dealer.

Mounting Subscriptions
_

,

,

In the campaign for the second
Liberty Loan, the method of pub-

Dan£rD3vm^fntonan^nh^Hne
Hon becam^a factor
Trust
irust rom"
uon

oecame

a

lactor

com-

offered to take

panies everywhere

10 to three every

tor a

f

otner^ with $5.00 down

e^KcA,,^l+a^?10n

small

the

most

1
day
with sellers*

bonds—'individual
of

them, storekeep-

too, who had cashed bonds
for their patrons—we called them

ers,

"delicatessen dealers."

our

as

This

?

the

large

'

spokge
that

off

went

a

couple

in

.

which

,

.

44

x

0f

boxes

took

r

for
to

over

of

camps, captured German
material and other exhibits,
heightened the interest.

it

seemed

country

as

if

owned

all

this

was

everyone
a

minufpc
minutes

account;

V.W V

aftor
after

xu^
the

rA

re-

ce*Pt of the bank's telegram, a
Pinkerton detective came into the
dUce.

The

Atlanta

had

bank

wired Pinkertons in New York.

„

Under directions of the Pinkerton man. we made uo a fat packto

be

sent

registered

x

mail,

which

securities

the

Stock

We

learned

later

that

the

au-

V
tborities watched the General Denumber livery
window weeK.
in the Atlanta
Post
Office for
week.
Finally thr

xu

'?

3

by

we

Exchange

Finally

a

nackage

was

called

back

boxes

the

were

in transit—

Benjamin

for.

Franklin

The

the

au

J0nes.j

re-

six months previou^lv
from a chain gang and wanted for

has

been

one

of

/^iiatyota

1 ur"1

Estate Analysis Co. has been
formed with offices at 555 Fifth

Partners are Robert Rachlin WilHam F. O'Brien, William Schur
and Philip T. Davis. Mr. Davis
was formerly with Security Plan¬
ninS Co. of New York.
Other
partners

were

Investors

with

Planning Corp.

$50

or




in
a

that

the

$100

Form Mutual Managem't
MONTGOMERY,: Ala.—Mutual
T

Management i Company, Inc. has
additional plant space and pur- been formed With offices at 412
chasing about $400,000 of addi-" Bibb Street td engage in a securitional machinery. NuWay, which
business. Gfficers are Claude
commenced production in August
1955, presently employs about 40

Tr
kairman* Claude
E- Dorsey, Jr., anairman, uiauae

persons<

R.

/

.

;

,

.

,

v

The entire plant of
Fire

Arms

pany,
Texas

and
a

a

Inc.,

Colt's Patent

Manufacturing

subsidiary

Corporation

of

Com¬

Penn-

has been

period

by

urer.

kid

Colt's.

Form Stowers & Co.

The

KANSAS

piant consisted of some 20 build•

,th

^

t

t

i

fl

sauare

SDace

feet

Treas¬

Secretai

Robinson,

portion of it leased back for

20-year

Kirk, President; Ray B. McVice-Presia^nt; and S. W.

Lure,

.

One

Co.

has

CITY,
been

ko. —Stowers

formed

&

of

fices at 312 West 46th Terrace to

about 700,uuu square ieet. une oi
the larger and more modern engage in a securities business.
buildings is leased by the Pratt Officers are Richard K. Smith,
and Whitney Division of United President; James
E. Stowers,
Aircraft ..Corporation. The -new Vice-President and Treasurer and
p
ownerg
of the plant will make John J. Fallon, Secretary.

I
Primary Markets in

CHAS. W. SCRANTON & CO.
Members New York Stock

CONNECTICUT

Co. Adds

with of-

of

S6Veral °ther ^

th^^oan ^or Ba^^ond?"^ MUU a"d Jeff'S

training

of

such

on

The

drawn.

every night and brought thorities arrested the man on the
evGry morning- °ne daY ^ot- He turned out to be one-

when

length of time. Street
with
men
from
the

result

the bank

was

certification.

Fiffppn
Fi
teen

^ f°rgery

war

The

*

♦

.

Tobacco

Initfhat and chained together, carried by four leased only

-

behalf

parades,

*

-

NuWay

to

times

of

They visited

brief

We wired

camp—no

such

age

devoted

room

W?S men' with 3 guard before and be"

^eih

245,000

-

General

insured. It looked like a package
this business, we took precautions of 250 j bonds.
Actually, it conand installed a hold-up alarm sys- tamed.folded up newspapers. We
tern.
Fortunately it was never mailed > the package and awaited
necessary
to use it, although it results.
In

wifhC?iPnn°dr»nn° b°ndiS vault

S! VP"!
>ec:r,

We ditl.

which the check

>

open

crowds.

floor

Company,
the pio"Whew," I said. "Wants us .to " neers in the development and prosend $25,000 in bonds to general: duction of
reconstituted tobacco
delivery? That's queer, to say the leaf binders for cigars, has anleast. Gu^ss we'd better do some nounced plans to expand its operinvestigating."
'
ations
in
Rockville by
leasing

answer

Our office became crowded from

one

aauitional

making a total of
additional square
"Hello," exclaimed Amos Her- feet of floor space to be added to
kins, who was rereading the let- the main building.
.

no

"Delicatessen Dealers"

seeking

Loan campaign, even street solid tation
was
undertaken;" ' The

all

Present

storage

oi

ieet

the main storef

for Bonds

.

this

~

spacetoThe ThrifTBalemenfand Avenue, New. York City to ento each of the first six floors of ga£e in a securities business.

■

rxu

j

and

plans call for adding1 about 35 000

sat

Form Estate Analysis Co.

.

be

small
denominations
information as to how they

Government

parts for militar>' and commercial
airplanes. Until recent years its

*

service

to

over

and

an

upon

The country was in a condition

posal.

We hit

the newspapers.

pages of

,

Receptive Mood

s

f 3

which'

feet of floor space devoted

square

'

Country

dei

; - Comoanv

&

onfratesThe dlreeYt

cforp,

The advertisingpresented someot a
problem.
Potential

bond .thing

the

Fox'

in

Hamilton has in recent years been
expanding and diversifying its
operations to include a variety of

:,+ -

,s

As a'n "evident of abLt $6 ZmonP to expand^ its operations; were primarily devoted
ms
locality As an evidence of ^ stQre includes
jn Hartford. xhe pres. to production of propellers.
.
,
gooct laitn ana in payment, ne
about 420 000
>

facilities .through adver

tlsinS-

McAdoo, Secretary of the Treasury,
was
enthusiastic over the
of

that he would like to cooperate

,s

^asn/e-fa^a°nsCe'th™0eUEahnnXer- h.Ps loctlUy

??n.Cl.ng °' the. wari William G.
idea

,

anc^ a0"v,e^Lthe. $50 an5 a p™c.'tlc|LSr'. " w? ™ou'd nre^entlv
''" P1"™ 0'1?0 Pieies and ?e"d him $25,000 in Liberty Bonds
sal1 the S1'000 bonds on the ex--la $100 denomination, he would

loans., The propo-

war

^ j..ul-h m aa-uru wnn u was ne

Exchange

New Haven

(Special to the financial chronicle)

Problem

of

Stolen

Bonds

CHICAGO,

We encountered the problem of
stolen bonds. Few holders of $100
and

$50

boxes

theft.
a

bonds

and

The

record

of

had

many

were

Federal
such

safe

stolen

staff

deposit

victims of

Reserve

had

bonds

as

111.

—

Robert

L.

SECURITIES

New York

—

Grant, Jr. has been added to the

pany,

of

A

Hartford
c.

Allyn

and

was

REctor 2-9377

JAckeon

7-2669

Com_

Incorporated, 122 South La

Salle Street. Mr. Grant

—

previ-

ously with Rodman & Renshaw.

Teletype NH 194

Volume

184

Number 5552... The Commercial and Financial Chronicle




Set the

Behikid 6he Ships that
a

World's

Master's Touch in

mightiest ship, the Navy's newest

going airfield—U.S. S. Saratoga
Maiden voyage

.

ocean¬

of the world's first atomfcrpowered
Y^.•

submarine

one

thing in common—socony Mobil's master touch

in lubrication.

•

.

fYYYY'Y'^YY'^

Mauretania to the S.S, United States
World's fastest boat,

216 miles

Campbell's Bluebird

.

.

:

.

Two-fifths of all the world's
The

race

-

an

;

.

ords

are

,

chips

down—when

are

who know marine machinery look to socony

mobil

for its

Y'V

protection.

:

Y'/ Y-' YY-

freighters i.;Y,

•

seas

MO B I L

Wherever there's progress

' '

your

have

ship,

your

plane,

>

home—you, too,

in motion—in

your
can

factory,

lubrication.

OIL

COM PAN Y,
.

FOR

farm

or

»

*

LUBRICATION

your car,

your

look to the leader for

'

IN

r

hour—Donald
your

LEADER

rec¬

at stake—when schedules must be met—the

'.yYY

.

horses and the work horses of* the

SOCONY

the

•

Good reason! When the

men

All the Atlantic Blue Ribbon Winners, from

Oil

90

YEARS

INC

'

The Commercial and Financial Chronicle

Thursday, July 19, 1956

...

raws

x

LETTER TO THE EDITOR:

assuredly not going to be

are

impressive with a redink
third quarter probable.
But operating efficiency has
been improving, plus a man¬

very

THE MARKET... AND YOU
By WALLACE

STREETE

with

vance

week

this

good
and

selectivity

great

the

with

ad¬

to

reserves

coal, is

of both iron ore

an

i

n

t e g r

a

fore,

"Chronicle" reader

that

so

Fremery's Article

deposit cash

make

auto market conditions

probes the "elemental flaw" in Mr. de

Fremery's article advocating Irving Fisher's

under better

could

issue

the

t e d

to the

men

new

continued

Mr. Da

shakeup to bring

agement
Stocks

A. A. Potter Discusses

100% demand

Mr. Potter discusses: inability of

reserves.

any

advance

operation and has been pur¬ a handsome about face.
plan to combat hoarding; world government, and revision of
running into progressively suing an aggressive cost reclassical theory of value inasmuch as money and wealth, price
harder sledding as the indus¬ d u c t i o n and improvement YYY.v:/!/
New Pet
: '/% Y\v'
and value, are not synonyms, and "capital values should not,
trial average came within half program that has been show¬
A
even if they could, be stabilized."
pet among the lesser;
a dozen
points of the all-time ing up in the profit figures. known issues of several mar- Y
To its fanciers, U. S. Pipe is a ket students currently is Editor, Commercial and Financial that is new. Indeed, as things are,
peak posted three months ago.
T-Towitt Rnhinc
which
«n
far
Chronicle:
no capital expansion on a large
candidate for improvement to Hewitt-Kobins
wnicn
SO
I
The civilized
The

world

Big Test

the

will be
being more in line with other bom?
given to what appears to be a panies on a ratio of at least
test of the previous high. If 12-times-earnings./
- .i ;
the summer rally can pene¬
,%%%/•' V- * :;;v *
A lot of attention

it

where

point

this

was

out

a

ooints

stands

serious need of banking and mon-

range of as. much as 10
which is
in distinct

etary reform not merely to prer
serve,
but ; to
establish
truly

issues that have

Known,prise

gyrated over

f

r e e

a

proceed otherwise; and

can

small business cannot become

large without such "credit" which
is truly "easy money? only on a
%"•-large scale. -Big business? oiten

private enter- rA

the
the widelv
widely known

contrast
to
contrast-to

scale

in

has-lailed to carve

year

,./■ Y "wmwmmmm
^

simply f "overdrafts" Y itsaccount

govern-Y

fand pays interest to the bank only

Another issue standing Out 4Yji5:,Jarg£^
sentiment for at a low ratio is United Shoe .conveyors and materials dling that ar-YY
be measurably ■
;
Machinery which is selling handling devices generally ,r *« t r
improved. A balk just shy of at
the firm has been benefiting
weaith, or only six times the earnings
the peak
conversely would of the last fiscal
year
and from Y theY" industrial * expan-Y tries to as a Y
aggravate the caution already around
30% under the year's sions and the urgent need for, ^progressive'^Y
existing.
' r
' >
devices
to offset ■ sive „"regres"
high although its anti-trust labor-saving
°
.;
nrndram
*
*
*
program '
■■YYY
climbing wages. and the
troubles are behind it now continually

Yon its deficiency, that is, without

trate

all

the

old

level of

521

from

at 4

any

decisively,

the

drawn../Y

.

-.Obviously,

.

...

,.

■

..A Rails

have

listless

been

.

"loan"

to

assure

and the company has been
doing a serv¬
generally, too, with no
are from these lines, the bal¬
diversifying into, among
ice
in
introapparent intention of trying
ance from floor products and
Alden A. Potter
others, the attractive elec¬
d u c i n g
the
to scale their May peak more
foam
rubber
which
also
is
a
tronics field.
matter into its
than a dozen points above this
'
YY/;
*YY! * v-' * YYY1 YY;Y Y growth business importantly columns again. However, Mr. de
week's levels. A determined
Cement stocks, after out¬ serving the auto and furniture Fremery's measure of reform* is
thrust into new high territory
lines. The company was able t0° limited to attain his stated
performing the ganeral mar¬
by the industrials could be
to boost sales about a third
YtteYthYY
ket for many sessions, finally
the spark to bring the carriers
last year with a corresponding • our professional economists.
He
settled down for something of
to life finally.
It would be
a
consolidation but without good hop in net income, and sees only the evils of what Father
something ofaturnabout
expects to continue the im- Dempsey, who discussed the probsince the industrial average any ^ great i, show
of profit- Yrm/dmdnt thic vpar Hpcnitc* lem in his monograph on "Interest
provement this year despite
Usury„ and took. it up with
taking
showing
up when they
posted its peak early in April,
lower sales of foam rubber as me in the coiumns of the "Chronand showed no capacity to go appeared to be running out of
the auto industry ran into its icle" back in '40s, calls usury. It
steam. The statisticians, seek¬
along with the rail average
troubles. It is a low .price- is the principal sum, not the ining
some
sort
of
easy
yard¬
when it persistently
fimp*? parnincm candidate' too
terest on it, which, -causes, as
forged to
times
earnings cana aate, xo , Lauchlin Currie put it in his
stick
to translate into dollars,
new
highs during May.
<
since it has been lolling at a ;Harvard Monograph of 1935, "the
have come up with the esti¬
V '
*
V://
less than 10-times price. *
Y perverse elasticity of the Federal
* -\ V
"
mate that each billion dollars
rather

K

.

but

accounts

only

the

state participation
in
control.)
Not private
the public account

monetary

"Chronicle" is

;.YY

...

account which
should spend money the first time
it; is spent is that of the central
government.
(Our
Constitution i

prohibits

...

two-thirds of its sales

About

antecedent

'

adequate deposits to cover checks

will

fall

must

the

run

only deficit
system. This
state "sov-

there is in the money

what

is

makes

any

Continued

on

page

■

*

In

with

•-

'

than five weeks of

more

more or

..

of

roadbuilding
less steady advances,
000,000 barrels
occasional

an

taken in stride

as

setback

normal, the

industrial index has

regained

better than 40 points over the

mean s

YYY*.

19,- ,Y„

i

*

Yi..

-

m

o

/;•'•'•

*

*

the

its contribution to

as

traditional

..summer

up-

'

turn.

j.

is not enough merely to pass
]aw ~ prohibiting? this
aneient

'

u

Yale j& Towne IS Still gen- a
of cement.
is, of course, erally regarded as a hardware practice in monetizing "reserves"
firm but it, too/has built up that don't exist, nor yet to put
isn't easily ascertained.
charge
of
an important role in the maJfrfnt
g°vernment m
? *
"
*
/.-.
; '0
rpU4„
printing more "reserves" as "back—
terials handling picture. This ing»
One issue, which has shown
business now produces around ■ /; ;
Cannot Combat Hoardlng ?
little signs of life and hasn't

How exact this

'•

:

,

.

r

••

,

.

,,.

r™

,

Interesting Issues
few

j

.

.

Y

-v

;

•

^

though, not, seemingiyf to Mr. de Frcmery.) A.rising

same thing,

'

.

handling devices.,/.

tributing any fireworks.
drug companies from

Other

.

level"; might

"price

.

prevent

-Abortive 1 ry v
hoarding — provided the rate of
Incidentally, the big play in change were constant; but to atproducts, with resultant the cements and the /still tain constant change is no less a
Y;

time to time have announced
A

new

"

issues

came

in

for

market

interest.

But

Abbott,

,

.

,

;

,

,

-

somewhat spotty

once

?

>•

i

«

p

•.

j

i

i..

^

__

beneficiaries
Of
the
huge
with something
was
completed recently, sup¬ to spur the stock. The com¬ highway program. The research developed mostly that
posedly from foreign hold¬ pany has been
improving the
larger
oil companies are
?
ings. Once the weight was quietly but steadily. Between
r
the major producers, that the
lifted from the issue, it was
of

some

100,000

shares

will

come

up

,,

j

1945 and 1952 the issue

able to snap

back smartly and
nudge to within touch of its
high. The company, once gen¬

erally classified as one
more
cyclical around,
achieved

a

through

the

mand

for

new

its

has

stability
municipal de¬

cast

built

iron

demand:

up

.

more

product is

than

a

was

It

nine-times-earnings. This is
that,

in

a

j

4.

gram.

period.

results hint at the best show¬

ing since 1951.
*

time

-not

expressed in
necessarily at

coincide. with

"Chronicle."" Then,

those

of

this
any

the

presented

are

those of the author

as

*

views
do

only.]

*

addition,

Chrysler also had its enthu¬
siasts
of

a

the

despite"

many

moment

aspects

that

Now With

Tay 1ot: & Go,

VSpecial to The Financial Chronicle>

BEVERLY

have

HILLS,

Harold G. Groll is
more

negative than

positive

has weight. Its earnings this year

lor

and

now

Company,

Camden Drive.

by

the

ASSETS

Cash,

with

balances
and

banks

trust

other.

/;

~

in

items

$5,821,490.85

of collection
<
Government

process

United

cash

and

/ ances,

States

v

political

•«,'

.

and

direct

guaranteed

Obligations

,

,

compa¬

nies, including reserve bal-

17,451,648.78

—

of
States
and
/■./'U./;'-subdivisions —; 2,821,034.77
notes, and de¬

Other bonds,
bentures

400,000.00

L

(includ-

Loans and discounts

$7,655.08 overdrafts)14,360,029.44
Banking premises o w n e d. ,//;.•.;'// / /■'.
/none; furniture. and fix-:;.y
ing

£3,036.30

tures, vaults & equipment
Real

owned

estate

other
premises—u.

than banking

Other

ASSETS

;,:vYY.

166.253.11

-a—.—i.—-—^.' 159,990.54

assets

TOTAL

.

$41,263,483.79

——

;;

v liabilities

-

indi- ///;/.,.;
and
r1/./!/' //•
corporations
—$21,301,561.76
Time deposits of individuals,
and
corpopartnerships,
Demand

.•*«

v

deposits

of

partnerships,

viduals,

.

rations

3,923.488.62

^-r

Deposits
Deposits

States /;"///' ;/"•■/'■;/
419,434.57

United

of

Government-

of

_1_,—'

and

States

po¬

11,019,013.96

subdivisions

litical

Deposits of banks .and- trust ! (/
/•'
/, companies
—_—./ , 475,297.47
Other':. /deposits / 4certified
j

checks, etc.)

and otfioers'

-

.

194,689.18

liabilities

Other

516,688.03

$37,655,544.41

DEPOSITS

TOTAL.

$37,850,233.59

LIABILITIES

TOTAL

Monetary

a

CAPITAL

ACCOUNTS

Capital J.Surplus fund
Undivided

$1,000,000.00
1,000.000.00

—-—

1,413,250.20

profits

That's why Canada's Mr.

favors,

not

a

AC¬

CAPITAL

TOTAL

"United

scheme of Mr. de Fremery lies in
article

made

of New York.

State

COUNTS

$3,413,250.20

——

Calif.—

failure tp
money

and
or

North

decide how to get

out of his "100%

into

total

The classical system

bank";

any

ready! possessed
as

a

"sound"

of

account al¬
some wealth

backing

corresponding

sum

can

of

get

a

secure

other

Loans

are

of

(b)
of

t,
the

tify
the

deduction

of re¬

or

the

"money"

192.016.84

—

Comptroller of

institution,

above

hereby

statement

knowledge

my
,

deduction

Landfare,

W.

above-named

of

93,785.11

shown

as

after

reserves

,

—

—

are

that

$11,534,633.05
above

Kenneth

best

and

shown

Securities

abO"e

assigned

or

liabilities
purposes

as

after

serves

this by the "lend¬
ing" tf banks held in check by a

; central

value of $1,000,000.00.

par

pledged

to

for

(a)

particular account

some

accounts.

Assets

new

reserve"

consists of common

capital

MEMORANDA

accomplishes

KENNETH

W.

and

cer¬

is-true

to

belief.

LANDFARE.

Correct—Af test:

with Tay¬

364

hank's

with

stock

$41,263,483.79

ACCOUNTS—

CAPITAL
t This

AND

LIABILITIES

TOTAL

The elemental flaw in the "new'4

-

| The

sales

call

a

of Banks pursuant to the
Banking 5-Law of thj&;

of' the

provisions

*.

was

is

leader in the




or

Lnder modern conditions, a
balance just cannot be attained—

able to break out of what

largely a stalemate in
and earnings and pro¬
pipe jections for this year's final

largest maker of such
pipe but lately has been sell¬
ing at a very conservative

field

Superintendent

it has been

the

low ratio for

"reserves'

gold

Fund (a fiat failure in the U. N.

low-prof it-margin Pearson

£

New York 4, N. Y., at the
June 30, 1956, published

with

payments" cannot, be attained by

quadrupled in price but
4.1
T+41
Nations," but rather no nations;
one
for most, and that little that
is/world government, or an
lolling recently a
score of
points under the 1952 could be gleaned from this Atlantic Union as a starter,
of the peak. Last
year the company phase of the new road prpElemental Flaw

used for water and
gas mains
as the mass move to the
sub¬
urbs

business

of

in'/accordance

problem than to attain no change,

demand for
^Moreover, it is not.true that the
large blocks unlike the others, hasn't had
the road r equipment compa-!: difficulties Of ^'foreign exchange"
overhanging the market had any spectacular products to
nies started something of /a can be resolved by stability in
been cleared
away, notably give it a boost. The theory is
search
for - possible
asphalt '®ach national currency separately
U. S. Pipe in which
ITU63R,;^iCIl6CtiV6
u313nC6^ Of
liquida¬ that sooner-or later Abbott
attention

tion

50 Broadway,

close

obligations,

May lows. A measure of the
overwhelming preference for featured in the news is Ab¬
!rYh,lrYSn
YJ
?a,e?aud Nor can any plan be adequate
this group is the fact that the
the
$7,000,000 produced by Atq. combat hoarding which conbott Laboratories with some
rail average was able
only of the market commentators sale of additional stock is be- 'templates falling prices, that is,
this week to stretch its im¬
ing raised to expand its facili- "an appreciation in the value of
favoring it for the precise rea¬
provement past half a dozen
ties to produce materials
niT thnntfhrenn?e«:PPmin^
son that
it hasn't been con¬
points

Company
of

j.Reserve system."

■■■■-,

31

OF

Underwriters Trust Y

'

\

CONDITION

OF

REPORT

*See

Ref-rms

article

"Banking

Monetary

and

Preserve Private E-t'erprise
by Robert de Fremery in the "Chronicle
of

June

7,

1956.

.

*

■

•

CHRISTIAN W.
JOSEPH

to

::r.

V

B.

V.

JOHN

KORELL]

..

TAMNEY iDirectors
E.

BOOTH)

'*/ '

.

Number 5552... The Commercial and Financial Chronicle

Volume 184

(289)
' ':''.
realize - that

'

.

Importance of

Securities Salesman's Corner

determined,

The

following bibliography of
texts pertaining to the
Banking business has
material

from

kindly sent to me by Edwin W.
Boehmler, Educational Director of
the

Investment

tion

will notice
written

Associa-

Bankers

America.

of

Although

that these texts
15

you
were

they
comprise a very carefully selected
group of available books on these
subjects. They are basic in con¬
tent
and,
although there have
been
certain
changes
in
the
underlying conditions surround¬
ing investment and investment
policy, as well as specific situations themselves, these books will
be helpful to any student inter¬
ested in acquiring a sound ap¬
proach to understanding various
aspects of finance.
over

years

ago,

READING

-

,

suited,

Prices

here

have

M il

nounced, following the
regular meet¬
ing of the di¬

and
Financing
Business" Bonneville and Dewey,

rectors

a

n

York,

New

Prentice

1939.

New

McGraw-Hill,

York,

'Jordan,
York, Prentice Hall, 1936.

New

Market"

Loeser, New York,
Quotation Bureau.

National

J.

Patrick

Recent

More

Texts

Financial
Policy"
Guthman and Dougall, New York,
Prentice Hall, 1948.
;
icy" -Pickett

Analysis

and

and

and

is

For

Ketcham, New

reading

of

a

general nature I would sug-

gest:
"The

Battle

Fog
Investment
Survival" -by G. M. Loeb.
•

"The

Intelligent

Investor

by

Benjamin Graham.

Hamilton Bellemore.

Street" by

Wall

markets • during
the
twenties and it will be

informative to those who did not
in

our

this historical period

financial history.

-

In addition to such texts as the

there

manuals.

is

For

one

wishes to study

wealth

a

the

in

information

of

who

the

Interna¬

and

Financial

In the

the

Chronicle"

of

that Mr.

Robert Kastor had opened offices
in New York City to engage in
the investment business. Mr. Kas-

tor, a member of the New York
Stock

Exchange, is

in

limited part¬
Gartman, Rose & Co., and

does not

now

a

it sticks. Read the his¬
torical record of 10 leading rails
utilities, chemicals, oils, mining
corporations,
paper
companies,
concerns

and

mer¬

chandising companies. Check their
book values, earnings, dividend
payout,
percentages of net
to
sales, current assets-liabilities
ratio, and the appreciation factor
of their capital stock. There is a
college course for you and it is all
right in your Standard and Poors
or Moody Manuals.

Commission

to

cover

special

a

will

find

believe

advance; but they can usually
these purchases by buy¬
ing or selling "futures." In such

protect

in

cases,

or

years—prices

.

for speculation.

Merchants

or to
of
the

direction

who

experts

now

commodity
closely than I do
the major trend in

more

that

month
dash

all

com-

closely, especially in these uncertain times.

>

lizers"

of

American

•

-

yinto buying more than
°r m™or?

months ahead.

-

commodity separately.

f

that

have

helped

of

price

commodity

each

is

finally determined by the supply
relative

to

the

surplus of

have

a

effective

demand.

of

attempts

individuals
all

ended

failure

to

do

so

has

with

the

that

Keith

the

I forecast

investment

chum,
liam

analysis depart-

under

sooner

way

seems possible.

than

to

Staats
&

-

&

:V,.-

■

Forms R. G. Worth Co.

today

REGO

-

Worth

PARK, N. Y. — R. G.
Co.,
Inc.,
has been

&

with

offices

formed

From my readers' mail, I notice

Queens Boulevard to engage in a

questions on commcdities.

securities.

They

simply

do

not

securities
Robert

business,

at

Officers

Grocoff, Vice-President; and Sol¬
omon

Wetchler, Secretary-Treas¬

urer.

solicitation of an offer to. buy any of these

securities.

only by the Prospectus.
July 19,1956

The North American Coal

advisory

Bache Adds
Bache

&

Co.,

New York Stock
announced

that

($1 Par Value)

Staff

members of the
Exchange, have
Lawrence

Berg¬

Price $12 per

Ellman, Bernard ; M.
Franklin, and John J. Putiak have
joined their main office at 36
Wall Street, New York City, as
registered representatives.
New registered representatives

man,

Sol

in the branch offices of

include:

Co.

Corporation

Common Stock
to

Robert

S.

Lowell,

Donald S. White, Jim W. Donovan

share

be obtained in any State in which this announcement is
including the undersigned, as may
legally offer these securities in compliance with the securities l#ws of such State.
Copies of the Prospectus may

Bache &

circulated from

Vr-'-V

only such of the underwriters,

;

Hazel

Smith, Chicago;
Charles Hoag, Cleveland; and Ray
and

W.

Mrs.

Myers and Eldon E. Murray,

Milwaukee..

Hugh Johnson Branch

Ball, Barge 8C Kraus

fymninirk & Domintdc
The First Boston

Corporation

Blyth 8C Co., Inc.

Eastman, Dillon & Co.

other




,

Kidder, PeabodyS Co. Uhman Brothers Smith, Barney & Co.

Harriman Ripley & Co.
Incorporated

'v.

.

Incorporated

*

are

Grocoff, President, Bruce

New Issue

service of the firm.

93-24

Commodities and Investments

that there are comparatively few
Most
governments people are interested only in incontrol prices dividual securities or groups of

disastrously.

-v '

Templeton, WilCo., and E. F.
Company,

Jones &

R.

Hutton

I forecast it may get

downward.

This announcement is neither an offer to sell nor a
The offering is made

W.

investment

to

ment of
of First
First. California
California Comoanv.
Cnmnanv.
ment

250,000 Shares

associated

C1v

has'joined

Charles

William

become

six

time

First California Co.

may, prove

commodity brings

prices and vice versa. The

Street, New York City, members
of the New York Stock Exchange,
announced

you

than

a

Chas. G. Schaefer With

post-depression ment in commodity prices will be '

oip*

economy

forget the basic principle that

and

This is

keep inventories in good control.

stabi-. cprtly, for the next minor move-

"built-in

so-called

The

many

bother

move contrary to the under300
Montgomery Street.
Mr.
lying trend. Hence it is absolutely Schaefer, who has been in the
neCessary
—
especially in these investment
business
for
many
uncertain times—to analyze each years,
was
formerly with Mit-

markets-will

businessmen,

modity prices should be watched

A

not

developmepts in the major wm
commodity

benefit

lower

should

,

_

than 50 years, I have

more

however, they should never
in to "make money"

traded

be

Other-

Keeping

With Lehman Brothers
Lehman Brothers, One

ROCHESTER,
N. Y. — Hugh
important
information
in
your
Mo od y Johnson & Co. Inc. has opened a
branch
office
in
the
Triangle
manuals, such as legal require¬
ments for bank investment, what Building under the management
ratings mean and how they are of Warren R. Thomas.
You

Jt

„

For

buy

in

various

the

markets

Closely

been

must

materials nearly a year

raw

contemplate retiring

Gartman, Rose & Co. The
arose through
misinterpretation when Mr, Kastor registered
with the Securities and Exchange
error

seriously

investment values

way

electronic

the

Commodity
follow

statistical

nothing is more instructive and
helpful than digging it out your¬
self, providing you do this sys¬
When you learn it
tematically.
this

we

forgot¬

Should Be Watched

Prices

the

with "futures," they are dangerstronger trend. In order to gauge ous. Better stick to the advice of
Properly the movement of prices, wholesalers with whom you have
yOU must consider both the major traded for many years.
Do nqt
and the minor trends.
let any salesman "high pressure"

sta-

so

that

have

the

Shearman

Statistical Material

foregoing,

a

CORRECTION

_

have
.

their

manufacturers

deals with the

This latter book

securities :

live through

recent

prices

of

enough;
fluctuate

Merchants

price

accentuated.

great

situation.

B. F. Winkelman.

roaring

are

the

are

from

"Investments—Principles, Practices and Analysis"
by Douglas
r

"Ten Years of

is

jn

in

rpove

the importance of commodity
market trends.

us

ner
y

director of

a

Telephone

July 12 it was reported

background

is

dated with Mr. Crowley in
public utility industry.

Pol¬

York Harper Bros.

more

who resides in

Lannan

Telegraph
Company and of other prominent
industries.! He was formerly asso-

"Corporate

"Investment

and

partner of Kneeland & Co., mem¬
bers
Midwest
Stock
Exchange,
tional

Other

wise—as

trends

commodity

fluctuations

more.

Most

ten

that

Chicago,

"The Over The Counter Securi¬

ties

movement

both

direction,

in

Advice to Manufacturers and

Jjecause^b^evq

.

"Investments"

s

When

same

The

commodity

majSrPcycle

Hall,

.

Dodd,

ble

Patrick

Lannan

"Security Analysis" Graham and
1940.

but

fast

you can lose it twice

market

even

individual

commodity prices continues upward.
They forecast a higher
tabs on commodity average of commodity prices beArthur
M.
price swings.
The Babson Or- fore t|is present
has
W ir t z
had
ganization has been publishing a beerl completed, but they embeen elected
Business
Inventory-Commodity phasize that interruptions to this
members
of
Price Forecast over this long peupward trend are possible. Also,
the board.
'
~nmarily because
riod, primarily
Mr. Lannan,
they ten me that there will be
that
a
knowledge
knowledge of month-toliiunui-iu- individual
commodities
which

J.

d

Management of Business" Gersten-

berg,

been

Roger W. Babson

the

of

company,

York, Prentice Hall, 1938.
Organization

ukee

Road), has an¬

"Organizing

that

stock

inf 5av® .re" tend to hold fairly steady

(The

w a

the

wide-

Chicago, Milwaukee, St. Paul and

Practices" Badger and Guthmann,
New York, Prentice Hall, 1936.

"Financial

and

spread suffer-

Company

satisfaction

ment. :

losses

serious

^

CHICAGO, 111—Leo T. Crowley,
chairman of the
Board of the
Railroad

study have shown that
commodity prices move in defi¬
nite cycles. I have proved to my
own

money

fast!

as

Years of

where

areas

Named Directors

Pacific

make

futures, but

Swings in Prices

commodity
prices,
as
well
as
groups, follow distinct — though
not regular—periodic fluctuations.
Of course, one must distinguish
is hard to be¬
clearly between the major cyc¬
lieve ; there lical or
long swing movement and
are
many the minor or
shorter-swing move-

WEEK —CURRENT

NEXT

;M "Investment Principles and

New

I never buy stocks without giv¬
ing consideration to price trends
in the products made or heavily
used by the company in which I
plan to invest. I recommend this
policy to others and 1 caution
against speculating in the com¬
modity futures markets. You can

.

Investment

obtained

thousands,
and
the history of growth and decline
cf an types of business organizaThe whole world has been up¬
tions in every field of endeavor,
set economically and politically
a sharp pencil, a manual, and a
pad of columnar paper, listing the ° by World War II and its after¬
math.
In the midst of our own
pertinent facts concerning 10 corlong
postwar
porations
in
each
comparable
boom
only
industry, will give you an underrecently
standing
of security evaluation
showing signs
that will add stature to your work
of
decline—it
as an informed security salesman.
of corporate reorganizations

selected
been

historical

the

and

determine, to a considerable
extent, the return they get on

their stocks.'

record of hundreds, yes

.

v

kets

Maintaining that these uncertain times accentuate the impor¬
tance of watching commodity prices, Mr. Babson points out
that the many attempts of governments and individuals to
control prices have all ended disastrously, and that they move
in definite cycles. Predicting next minor (as contrasted with
major) price movement will be downward, urges separate
analysis of each commodity.

Fundamentals of Security Salesmanship
ARTICLE IV

■...M

..

supply-demand trends
prices in the commodity mar¬

and

By ROGER W. BABSON

By JOHN BUTTON

-What To Read And Study-

..

17

......

Financial

The Commercial and
.18

Chronicle.^Thursday, July 19,1956

(290)

swing. What with unemployment
compensation, reduced tax with¬
holding, and protection against
drastic credit deflation, I think
we can count on a sustained mar¬
ket for perishable goods and serv¬
ices. If unemployment in the softgoods field does not rise much,
this removes one part of the rein¬
forcing mechanism by which a
downswing grows worse. Besides,
the corporate-tax and banking sit¬
uations
make
it
unlikely that

How Dangerous Is the Economic
Position of the United States
By DR. ALBERT

GAltORD HART*,
Columbia University

Professor of Economics,

Professor Hart asserts that although

general activity during

the peak of 1954-56 boom

second half of 1956 will be high,

have been already passed. Maintains signs of weakness
are widespread, and denies there is a basically inflationary;
demand situation. Points nut disastrous consequences in event

.

may

of real peace breakout with disarmament. Denies
belief that downswing in an Election year is impossible
of
In

hold

popular,
because

politically-motivated intervention.

long prosperity, it becomes
easier and easier to feel that pros¬
a

perity is automatic. This pervasive
optimism has its advantages, es¬
pecially
for
those

of

o

r

to

love

Vvno

p

us

m

t

o

e

But it
may be a trap.
things.

last time

The

got

the nation

below

only below last year as forecast,
but below forecast. While it is not

impossible that the upswing will
pick up again, it seems more like¬
ly that it will reverse. This is par¬
ticularly probable since the pros¬
perity rests so heavily on markets
subject to a "band-wagon effect"
inventories, stocks, and novel¬
ties in housing and autos.

we

when the

mediate

When

im¬
sup¬

ports of pros¬
perity let go,

fession

we

have

anotner

up

down.

two

built-in

off the floor once we
,

'

-;

V

down¬

Could

a

are
...;

*

swing (whether it starts this year
or next), is it likely to be serious?
uur last

that

consensus

flexibility does rot do much to get

Serious Momentum?

that

found

*

*

■

r.y.

Once down, is

there

serious
again?
In
principle, no. But we could
imagine a problem if sometime in
the next few years peace really

risk that

downswing (1948-49

and

This finding is

ho paradox. In

borrow

a

month

of " two

of next

any

cannot get up

we

might

produce: several years of
chronic
unemployment
in
the
hard-goods, centers, somewhat an¬
alogous to the residual unemploy¬
ment in Britain during the up¬

year's market for 1956 by an earli¬
er

model-change. If

so, auto

.

sales

in 1957 will be that much less of

economic support. Besides, as
George Katona of the Survey Reseach Center is pointing out, it is
here in 1957 and 1958 (not in 1956)
looks probable for 1956: high but
that we must expect the backwash
declining operations in the latter

fact,

a

correct forecast at this time

an

at year in 1929 (or in 1953) would
have been the same
that now

part of the year. The intentions
to buy houses, business premises,
and machinery which are our main
basis for expecting high activity
point to levels well above the 1955
average, but not far from those
reached in the last quarter of 1955.

True, some responsible
think they see signs of
ary pressure.

of orders

in

observers
inflation¬

There are backlogs
the metal - products

the industrial price
level has been rising at a disturb¬
ing
rate. Prospective wage
in¬
creases (not merely union propos¬
als, but indications as to what
employers find acceptable) look
as if they will outrun productiv¬
ity. The stock market, while late¬
ly it has not been rising extrava¬
gantly, is still in the price range
sector,

and

it

that

.

talked

itself

into

in

its

wildly optimistic phase last year.
No

Basic

At the

Inflationary

Demand

time, there is not
basically inflationary demand
My impression is that
the signs of excess demand in the
metal
products sector rest on
building up of inventories in ex¬
pectation of a price rise. Once the
price of steel has either risen or
same

swing of the mid-1930's.

economy is
handle such

When

people who want to trade
cars go to their deal¬
ers, they are apt to find that their
unpaid balance is so large com¬

three

in their 1955

well

pared with the value of the 1955
car
that their trade in will not

to over-use of tax cuts and mone¬

tary measures as stimulants, we
cover
the
1957
down-payment. might find that we were generat¬
That will cut out a good many ing inflation in face of substantial
deals.
If there is a general re¬ unemployment. Whereas at pres¬
such
stimulants
need
not
vulsion against getting into this ent
kind of trouble by long consumer prove
inflationary with unem¬
credits, the effect will be com¬ ployment exceeding two million,

pounded. Once started, an inven¬
tory .-reduction campaign by busi¬

it would not be surprising if radi¬
cal disarmament raised the infla¬

is apt to last at least a year.
Business
plans
for
plant - and

tion threshold to

equipment, which were speeded
up in early 1955 in response to
the upswing, might be deferred a

of

little in response to a downswing.
A month's postponement on the

is

ful

level

that believes it
—and

vacancies

wonders.

Signs
spread.

weakness
While
some,

Of

are

wide¬

observers

characterized the 1954-55 upswing
as

unusually

strong,

the

fact

is

that it lost momentum short of
full employment. For months now,
industrial production has shown
do
^

gains,

and

unemployment

(while fairly mild) has continued
to

show

there

was

slack

in

the

-are

used

five

or

unemployment for

such pain¬
six million

a

few

years.

stagnation.- In the first place, it
possible
that
business men
might be deeply discouraged by a
few years of hardship.
Selection
for
business
leadership of late
years has favored the mentality

of projects scheduled for
1957 would in itself be enough to
pull these expenditures 12% be¬
low 1956. If unemployment rose
we

as

some

Two other factors might tend to

average

than

to,

builders would find their working
capital largely frozen, and would

feels

it

The

can

has
same

work wonders

been working

type of mind

is

capable of developing an acute
of inadequacy when things
refuse to go well.
slow down.
It is conceiv¬
able that a depression comparable
In this whole field of postponto that experienced in 1930 and
able expenditures, we must re¬
early 1931 (that is, before the cat¬
member that a sudden change of
astrophic stage of the Great De¬
buyerS' temper is possible. Having
lived for 15 years almost continu¬ pression was reached) might blind
business leaders to investment op¬
ously in the hothouse of easy sell¬
portunities. In the second place,
ing, easy earning, easy absorption
the same mentality in government
of new capacity and easy capital
might lead to ineffective countergains, our business leaders as well
measures
against a depression.
as our households may be suscep¬
There seems to be little authentic
tible to sudden chills from merely
advance planning in
process; dis¬
temperate breezes.- A break in the
believing in the possibility of a
stock market might change the.
serious
slump,
the
politicians
whole climate of business opinion.
have

in the

as

go

far

so

wrong

sense

The Inflationary

Dilemma J.*'

standing worries of
economic policy is that we mayhave to choose between excessive

assure

would imnrovise when it

economist is not

inclined

fore taxes

1929

The

to about

purchasing
with

pared

a

of their

85%

power,

as

com¬

rise to about

165%

struck.

r

The Superior Oil Co.

Proceeds

from

the

sale

the

of

1929

academic

economists

are

some¬

what

prepared to take the risk
of using fiscal and monetary pot

stimulate

to

there

is

activity

when

*

unemployment.

The great bugbear of those who
fear chronic inflation is an up¬

ward

pressure

trade

unions.

on

by the
part," I am

wages

For my

prepay bank notes
now
out¬
standing. The company also ex¬
pects
to
spend
approximately
$2,500,000 from its general funds
to

complete

furnish

and

story office building
owned property

its

12-

on compaqy-

in downtown Los

Angeles, Calif.
The

-

debentures

new

are

re¬

deemable

at general redemption
ranging
from
105% > to
than I was a few years ago. But
100%. Commencing Jan. 1, 1962,
I am concerned about the inter¬ and on
each Jan. 1 and July 1
play of wage and price policy.
thereafter, the company is
ob¬
Right now, it seems to me that the ligated to retire $1,500,000 prin¬
steel industry would be embar¬
cipal amount of the debentures

less concerned about this in itseK

if the union

rassed

ing too large

increase, be¬
industry would like the
increase as a pretext to raise

wage

prices.
in
in

not ask¬

were

The

steel-price

problem,

fact, exemplifies the key factor
the

-

unemployment

dilemma.

present,

In

a

-

situation

a

inflation
like

the

temporary rise of steel

prices is probably appropriate; the
trouble

that

is

try's tradition,
most

given

the

indus¬

increase is al¬

any

be

to

sure

downward

permanent.

The

rigidity of key prices

like steel has the effect of

putting
prices on a ratchet; and thus the
effect of relative price changes
to

market

ease

strains

is

ir¬

an

reversible inching up of the price
level.
■
'«
v *
*
Where

I

part

with

company

de-flationists is in the

some

prices

through

a wage

the

cause

use

sinking fund at 100%.

a

The

Superior Oil Co. operates in
states as a producer and seller

17

of crude roil and

producer
gas. It

in 14 states

seller

and

a

is not engaged in refining

processing; crude

or

as

natural

of

extent

some

it

oil

but

does

to

extract

natural

gasoline
and
liquefied
petroleum gases from natural gas.
Most of the company's production
is derived from properties which
it
operates, and the balance is
from properties
operated by
others under joint venture, uniti¬
zation or other agreements.
"
r

For the

fiscal year

ended Aug.
31, 1955, Superior had sales and
other operating revenue of $78,866,000 and $43,329,000 for the six
months ended Feb. 29, 1956.
.

of

monetary

and
fiscal policy
to
combat this sort of inflation. The

Dempsey Elected Director

trouble is that if the Federal Re¬
and

serve

Congress

economy for its
the punishment
delivered

punish

the

wrong address.
If restrictive monetary-fiscal pol¬

icy intensifies unemployment, the
losers

wage-earners

will

be new entrants to the labor

mar¬

among

William

ket,

elderly people near retire¬
ment, and those who have low

voice in union affairs.
in

ers

the

Mr. Dempsey,

tor

business

community

increases;

does not take

but

the

penalty

form that induces

a

price flexibility.
On the
whole, the remedy for inflation-

formerly

President

and

Dobme, Inc., is

a

Co.,

of

a

direc¬

Sharp

&

director and

now a

consultant of Merck & Co.

Clement Evans Branch

The los¬

may more nearly coincide J with
the group that engineer avoidable

price

Dempsey,

director of The Mead Corp.

a

seniority because they have lately
changed jobs—just those who lack
a

Lawrence

general partner of Drexel &

inflationary sins,
is likely to be Philadelphia, Pa., has been elected

the

to

ORLANDO,

Fla.—The

Atlanta

investment banking firm, Clement
A.

Evans

&

announced

branch in

Company,

the opening

Inc.,
of

has
new

a

Orlando, Fla., the offi¬

more

on-the-ratchet

seems to

lie in the

fields of anti-trust

bor

policy—not
price policy.
If

policy, and la¬
forgetting farm-

price-wage structures do

tinuously misbehave, then
thrust

back

on

the

accepting inflation

con¬

we

of

unemoloy-

or

I doubt that the alternative

of

a repressed Inflation
price-wage control is real.

I

Building,
James
Mr.

that the

structure
self.

talk

is

a

in

States

accept

the

are

not

restrictions

willing to
on

their

activities that would have to

be included to make

acceptable' package.

a

politically

Those

by

H.

Wheeler

is

well

been

with

known

in

haying for¬

the

firm

of

Orlando.

J. D.

who

do not mind the

inflation-risk than the rest of

Creger Co, Adds

{Special to The Financial Chronicle)

it¬

But I suspect that those who
it as a policy for the

about

United
own

evil

managed

investment field

merly

implied control

serious

be

Leedy, Wheeler and Alleman, of

running
agree

to

Wheeler.

are

dilemma

ment.

under

being located in the Rutland

ces

the

to




Superior Oil Debs,

debentures will initially become
purchasing power (on a
part of
the company's general
per capita basis) for the nation as
funds, of which $14,260,000 will be
a whole.
We are not apt to forget
used to retire outstanding deben¬
that this setback results from in¬
tures, and $40,000,000 will be used
flation.
At the same time, most
to

of

the

If

Dillon, Read Group
Offers $60,ODD,000

take

to

versity, Hew York City.

*

enhance the

we

very

thought of con¬
trols, of'course, have less aversion

the im¬

they hit on as poor a set of
stability characteristics of improvisations as the "First New
economy to check a down¬ Deal," whi>h tried in 1933 to or¬
on

oly problem drift,

An underwriting group headed
wel¬ by Dillon, Read & Co. Inc. yester¬
come
salary increase lately an¬ day (July 18) offered for public
nounced at Columbia, for exam¬ sale
at
par,
$60,000,000 33A%
ple, brings professors' salaries be¬ debentures due July 1, 1981 of

lightly.

proved

good deal

To

let the monop¬

we

risks of stabilization policy,

Let
that the' academic

you

*An
address
by Dr. Hart before a
dinner meeting of the Alumni Association
cf the Graduate Schools of Columbia Uni¬

a

the extent that

unemployment and inflation.

to

I count

somewhat too much inflation.

1930's.

One of the

four years.

But it might
impossible to manage it
in one or two. And if impatience
with the speed of the process led
or

enough to generate higher housing

settled down, the inventory situa¬
can be expected to reverse.

probably sufficient to
an adjustment within

be

situation.

tion

;

from the loose auto credit of 1955.

a

-

;;

The flexibility of the American

ness

atti¬

Slump Prove Refractory? t

.

peak" for the 1954-56 upswing is
set, it will be at a date we have
already passed.
>

could

again

V."'V icy

1953-54) have haa little mo¬
Prof. A. G. Hart
ing in reserve. mentum; they coasted to a stop at
levels
of output less than 10% be¬
1929 was fol¬
broke out.
Government exnendilow full prosperity, and were suc¬
ture on military hard goods and
lowed by the severe downswing of
ceeded
fairly promptly by up¬ construction is almost as
impor¬
1930-31; and as disillusionment
swings. But this experience in it¬ tant a market for business as
pri¬
spread we developed a chronic
self is not conclusive. In the 1920's,
vate
variety of the old-fashioned acute
expenditure on producers'
also the recessions of 1924 and 19economic crisis, lasting from late
durable equipment. If a large part
27 were brief and shallow; if we
1931 till World War II*
of this market were eliminated by;
merely .went by
counting, we
disarmament, the corresponding
should be asking ourselves wheth¬
Likelihood of a Downturn
tax cuts would reinforce the de¬
er
the ( third
downswing might
We can already see that the
mand for soft goods and services
again be much more drastic.
more than for civilian hard goods.
general level of activity for the
The
possibility that a downswing A big reorganization of the labor
second half of 1956 will he high.
Yet most analysts think a down¬ might for some distance be self- force would be called for.
Im¬
turn is likely; in fact, it is quite
reinforcing is still real. It looks mobility of workers and difficul¬
possible that when the "reference likely that the auto industry will ties in bringing jobs to them
had noth¬

we

ernment

inflation

ity of wages removes any incen¬
tive to postpone such outlays in
hopes of drastically lower costs.
But on the whole, these mecha¬
nisms of "built-in flexibility" point
only to a slower decline and a
higher floor to any depression
than we could expect otherwise.
I
agree
(despite the interesting
dissenting views of the Chicago
school) with the widespread pro¬

restrictionistic

a

either business leadership or gov¬

Keynesians that the present rigid¬

Downswing Pick Up

a

for

with

tude; but it is hard to believe that

me

us

Can

*

mind,

outlays

business

back

tries

plant and equipment which seem
likely to earn their way if financable.
Further, I agree with the

—

into this frame
ot

Housing starts are a bit
last year; auto sales are not

system.

handicaps .will

financial

merely

ganize recovery around measures us, But practically speaking, the.
of
output-restriction, a general choice is between working out
.loss of confidence is possibles But more effective 'anti-mbnopoly re¬
I must say that this does not seem straints ' or
accepting somewhat
much
likely. There certainly are indus¬ too
unemployment
and

WHITTIER, Calif.

—

Frank E.

Adams, Marvin H. Allen, Charles
W.

Cottle, John H. Devine, Robert

F.

McKenna, Thomas J. Mitchell,

Michael

Papp,

2nd

been

added

Creger
Avenue.

&

Frank

William

lock

to

Co.,

the

H.

D.

Schal-

West

have

staff of J.

D.

124 North Bright

Number 5552

Volume 184

Continued

The Commercial and Financial Chronicle

...

ning for their plant programs, and
this
assuredly should make for
somewhat greater stability for this

least initially, but it will call for
more highly skilled help, at correspondingiy higher rates of pay.
Moreover, automation ordinarily
involves an extremely large capital outlay, afid the cost of capital
goods is advancing sharply. The
result is likely to be a higher level

but short-run volatility has equally been a feature of modern ecoUnited States to the good for- or retarded, expanded or cut nomic history; the continuation,
tune of "rolling readjustment." back. At present, the stabilizing and perhaps even acceleration, of

and greater relative importance of
fixed costs in the future; alsdi,
complex, highly specialized new
equipment may lead to growing
inflexibility in operations.
The
cost of idle capacity, which has
contributed to industrial instability in the past, might thus become

United States has in the past repeatedly experienced long periods
of high and rising economic activtype of spending, especially in a ity wthout entering a "new era."
period of business sag. It should Indeed, a strong and broad growth
be noted, however, that the plans trend has characterized the interof
many
companies tend to be national economy since the begin-.
rather tentative "and provisional; ning of the industrial revolution,

jrom first page

Observations

Economic

on

Trends in U.S. and Abroad

long-range

...

programs,
by their
may be accelerated

has, however, been accompanied by troublesome new
problems in most of the important
industrial nations in
the world,

ity in the postwar economy of the

very

That is to say, instead of several

effect

In
the past year or two, shortages
have developed of industrial raw
materials, of plant capacity and of
social capital; total demands have
frequently outpaced
production,
and current savings, even in the

major sectors of the economy re- upon future investment spending
ceding in unison, a decline in is more of an expectation than a
some sectors has tended to be off- demonstrable fact.
set by stability and strength elseThe remarkably rapid expanwhere.
;
sion of business plant and equip-

progress

including

States.

United

the

,

,

nature,

these

of

various

factors

,

The downturn of 1948-49 was ment currently under way is often
marked by a shift from inventory cited as impressive evidence of the
have ^accumulation
to
liquidation,
a
vigor prevailing in this sector of
tended to lag behind the require- contraction in consumer spending the
economy.
This
reasoning,
ments for investment funds. The on""soft~ enorf"~1 nwar ~£,7<T;T"

older

richer

and

countries,

wage-cost-price spiral has been
active practically everywhere, and
credit
expansion
has * exceeded
physical output. ;it is of some

in

investment
ment

and

jng

But

spending

'plant

slight

a

on

full

nevertheless^

employment'

rrVXpr\?
in
thebuge backl°g of

needs for

SlemTare of oronounrS P,UbllC. facdlt1ies; consumer buying
S the fnC TtS of auto™°biles and other "hard"
international
the
goods, deferred demand for which
^mernationai economy.
;
; , had not yet been wholly met,
importance

economy

therefore

is

surprising

not

that, while our trade and tariff
policies, our military expenditures
and our foreign aid and invest-

continue to be of
to our neighbors and
our
friends abroad, a
deeper and broader question pertains to the prospective stability
of the American economy in the
ment

programs

immediate

interest

American
ties

The

ahead.

years

the

to

very

size of the

and its many
of the world are

economy

rest

ne
continuing
the
continuing
nations with
nanviw
developments at home. The

ample
our

for

reason

of

concern
VV/UVCIU

UJ,

many
UJOUJ

,

reappearance of pronounced economic instability in
the United

>

provided further support.

A liquidation of business inventories was again a factor in the
1953-54 business downturn, but
this time its effects were reinforced by a sharp contraction in
military spending by the Federal
Government and by a sag in consumer spending on hard goods,
Consumer purchases of soft goods,
on the other hand, remained quite
steady, business plant and equipment spending held up
much
man nan
nccn anuwpareu,
better than
had been
anticipated
and
home building^
—
—
o displayed
„
—im-...
portant strength. State and local*
government outlays, as1 in the
previous
business
adjustment,
continued upward; these expenditures have followed a rising trend
throughout the postwar decade
regardless of fluctuations in the
-

as

might

progress

CJC

^u^—jo

-

-

'

•

"

'

ever,
issues

the sectors that were strong in the
earlier period were soft in the

the

and vice versa.
Perhaps
the most important single contrib-

appraising

in

American econom.c scene.

,

Pnstwar

Thp

5^
The

record

economy

in

of

the

American

the

postwar

decade

decline

the

from

peak

to

low

than about 3%, measured in terms
of
the
Gross
National Product,
And while

commodity prices have
been fairly volatile on the upside,
a rapid rise after the end of World
War II was probably inevitable in
the wake of large demands, lim-

creases of the magnitude now in

commodity

prices;

in
a

aggregate

pronounced

credit
liquidation
and
deflation,
comparable
to

business investment. Industrial

W

-

ized

so

followed

helped

this

lays;

prevent

seetors

of

wars

+

—^

nn

va...v..

Hiv

,

.

f

nnr.

our

industrial history.

.

g()me

.

.

.

•

„

.

in the past

than it has been

of the recent

d

;n5 p^ ? A. themselves to us „eives feit
Whether, Jbat technological
® i !S "5
lndicati°n
Moreover
in planning
the
advance
has future
0ne'should
bear informind.
vola"Iity
in
the
*®"np®m1c
activiti
Furthermore
that
tliere
is
no
reliable
basis
for
p_r?b!e™,o.Lcr
replacemenT of^ outmoded torcasting the level of births, the

y.ear?

^he?d:.?;he

js

be

to

done

the

achieved, it will have to
by standing up to the

volatile

in

With

competition,

labor

costs

have

economic

the

States

United

at

a

growth in
relatively

and
rising
powerful

the widespread long-term optim¬
ism now prevailing among busi-

a

been

and the public as an obdecade of

stimulants to expenditures on in-

nessmen

dustrial

vious byproduct of a
almost
uninterrupted

popular .ta Also^

.ascribe this high degree of stabfl- are

plant

and

equipment,
businesses

economic
engaging in long-range plan- expansion,* aAdstiessesr that the
more"

and

more

volvedAutomation

may

the required

serve
to re¬
labor force, at

Continued

on

page

respect to the outlook for

continuing

Re-

postwar decade.

bave fallen far short of the mark
- ancl the present tendency is to
raise population sights snarpiy

capital

or

f.
duce

*'

Also,, it is stressed that governments the world over have assumed responsibility for maintaining full employment,
A more critical approach views

been
notoriously
earlier^periods of our
but has been

smoothly and painlessly either to

Some Questions for the Future

has

economy

search,




factors will

fluctuations in investment activity in the short run. A high and
rapidiy rising levei of business
investment, with stress on "auto-

,
throughout

,

by

far.

A Decade of Rolling Readjust,.

that'these

be equally effective in forestalling

....

new problems and changing conditions that undoubtedly lie ahead,

state and local governments—are likely to continue to

lays

the

ments—It has become

assurance

and that, moreover, the profitable mation," may well create prob"Ut^at10" of ra.Pldly rising capac- lems of its own.
x/a'x
Rapid capital obsolescence and
y ,ls underwritten by the pros-

be

the Federal Government, and out-

most of

•

bh(^^)^twar years^ will be
entering the marriage age; eco¬
nomic projections then contemPlate a renewed bulge in needs
for homes and» lat.er> for schools,
as a new generatic)n appears in
huge numbers. •
tbenot
same
however,thatit
should
be time,
overlooked
the
labor force wil1 then be grow~
mg at o considerably faster rate

capital ...,
investmentl v,
over
t
the long ^
term. However there is as vet no-

vu„llUi

_

act equally strongly on the downside in the event of an easing of
business activity. A growing conviction among corporate manage*»-ents is that, even at cyclical
peaks of demand, excess capacity
ls ,to be preferred * to shortages,

°

the
the

Key Role of Investment Spending—Applying this lesson to the
current outlook, it is fair to conelude that large sectors of the
economy — particularly consumer
buying of soft goods, spending by

history, has not material-

a

,

other

u

^

..

,

caP^ expenditures,

strong sustaining element through

which

lnf economic Potency of rapid
Population
growth in the United
st£de? ls clearly evident. It has
contributed importantly to the

y||trs a8 \ e

price
our

and

slower,

be

may

economy focus upon tne uu""t;uuxi V1 eiecuMcny, auto- npf>+pd
^uestipn whether the forces of mobiles, and radio, to mention Lar® as'thewinfants
grovYth' which are undeniably at only a
have certainly been;
d j
^ a minimize th°at
heZlves" to °u1

economic history,

in

nl

Uyv

Ai

.

i,

,

postwar
those

-

prospect. In recent months at f,e?earch is growing swiftly and
least, business concerns have H?ls ^-ea£ T11,1 •involve outlays in
tended to act as in earlier
$o-$6lead
billion
range.newItprodwill sustained
"5Ldavs*
I certainly
to many
high
of residential
building, to
the level
demands
especialln an environment of rising or- uc'+rTmWov^
<Tnnrl TrTnU
—
ders, sales, production and profits, of D'roduction and nrpsnmahlv a ly for durable goods, and, natutbey have expanded their plant more raDid o'bsolesrenrp of ran rally, to growing needs for roads,
PXramS qUiCkly and SUbStan- keen
ital equipment
Together with hospitals facilities.
water supply
and other
comDetition and rising labor public
Furthermore,
costs, this will doubtless provide business
planners
are
already
looking
forward to the
I960 s,
not necessarily indicate that busi- a strong incentive to-' business
r,
*
wot-

.

corrections

'

J

automation

economic
expansion, provided
at least inby population
industrial
The great
population
United
States phenoone
remarkable

provide important support to ag- stable
rate,
there
are
several
gregate business activity. Suffi- schools of thought. A widely accient volatility, however, remains cepted
notion
is that business
ited supplies
and the lifting of in the fields of business inventory corrections in the future may rewartime price controls.
Nor was policies, residential building, and main fairly moderate because of
the
resurgence
of
inflationary —as is now being emphatically the cushioning effects of strong
pressure
after the outbreak of demonstrated — in consumer ex- long-term growth trends. Attenwar in Korea a surprising develpenditures on
automobiles and tion is directed to the expansive
opment.
Excepting the two pe- other durables, to preclude the forces present in the United States
riods of soaring prices traceable acceptance of rolling adjustments economy,
and in the world at
to war, commodity prices in the
as an ironclad guarantor for the
large, which include the upsurge
United
States,
despite
sharply future. On balance, prospects for in population, pressures for highrising
wage
rates,
have
been stable and orderly economic prog,-. er . living
standards,
increasing
fairly stable. Moreover, the two ress appear to rest largely with needs
for
productive
facilities,
mild business setbacks of the dec- capital investment by business.
ancj
new
vistas opened by adade were
accompanied by only
The
investment sector
of the vances in technology and research,
modest

'

the

utor to the good economic record volatlllty ln the area of business
°f
thef postwar decade was the
or
general strength in capital out- .on tbe contrary, they are likely
other

quarter in each case was no more

i-"L

erai.

latter,

"

by almost 60%; and the two business
adjustments of 1948-49 and
1953-54 were quite mild; indeed,

beset

econor515 new'product development are no than at present, and the maintento
bI motivaTing6
original with the mid-20th cen- ance of adequate employment
rcSntiaT
constr Lection"'in
sentury; rththey
have
been at work ^vels may
"be come' more'troubletJOlUtllLlal
LUI la 11 UL11UI1
111 fotrl
+V-.
/-.11+
irvrlriefeiol Viicfnr-ir
"
il
„4-

£

3

aj.

consideration of some of the
involved may provide some

perspective

i

*

i

that

of°hn^ange plai5s*" Technological Breakthrough?—^ powerful stimulant to

C

tx/a
^^

it

A?

-

,,

,

ing intertions on p?"nt Xd equip- Perhaps the strongest argument
an
ment indicate .planned increases adYanced ln support of persistent society, is
in capital expenditures Tn 1956 and pervasive economic expansion 8™wth.
compared with 1955 or 30% for 18 the reference to the stimulat- sar?d in the
is upall
firms,
48%
for
manufacturers
13g
effects
of
inddstrial
research,'
of
the
most
and more than 100% for some In' the resulting advances in tech- mena of the past decade; moredividual industries Certairdv
nology, the promise of rapidly over, population is growing rapidof a year ago, long-range nlant rising Productivity, and the con- ^ „ln many other countries as
Programs did not contemolate in- ;>e(Jaent opportunities for higher wfd*
.
,
, '

in the world in gerieral,
well imperil the gradual
of the postwar decade,
May we assume that the range of
cyclical fluctuations in the Amer-r business climate. ; v .
^
ican economy over the next decThus analyzed, the theory that
ade will be no greater than that cyclical fluctuations
have K given
of the past 10 years, or will the way to a fairly smooth succession
preservation of generally stable of
rolling; readjustments
loses
growth become a more difficult some of its force. There was no
nn^
trnnKlocnirio
nrnhlom
i-oitnlnrifir
auirfonf
in
+Vin
and troublesome problem as we general regularity evident in the

States,

i

uncertainties

the

even more

may be± a two~edSed fubJre c°uld
contribute to, the attendant risks and problems
b^iild-'''SSSSJi* e*
strength of the roller than .detract from, our somewhat greater, than is comGovernmpnt 55
f
e ? capital spending chances of achieving greater sta- monly assumed at this time,
creates some doubt regarding the bility.
•;;; . ,Population Growth - Another

these

tit

significant in the years
ahead, and this could have important implications for the future
of business pricing policies and
profit margins. Thus the paceAM/4
of

those of the Past decade. Although this line of thought is less
cheerful than the preceding one,
its results need by no means be
negative; a greater awareness of

in

^1ril1vmir,?th0 n0tKithat thfSe' and local government outlays Recent survevs

S

possibility of business fluctuations
considerably more severe than

eauin-

and

sag

Federal

wL

growth in the future
would not necessarily rule out the

long-term

Thit advtrliitmtni is ntUhtr an offer try sell nor the solicitation of an offer
The offering is made only by the Prospectus,

Nor

a

New Issue

to buy any

of these securities.
July 17,1956

'

100,000 Shares

Cummins Engine Company,

Inc.

Common Stock
($5 Par Value)

*

Price $64 per

Copies of the- Prospectus

may

Share

be obtained in any note from such of the several Underwriters,
as may lawfully offer the securities in such state.

including the

undersigned,

A. G. Becker & Co.
Incorporated

Hemphill, Noyes & Co.
Ladenburg, Thalmann & Co.
.

.

.

Kidder, Peabody & Co.
Union Securities Corporation

White, Weld 8c Co.

20

Continued from page

^

public support. Nor, have fiscal
and debt management policies, or
most other types of government
action, responded with alacrity to
changes in business conditions,
with the exception of Federal Re¬
serve
policy after its unfreezing

of

Economic
Trends in U. S. and Abroad

Observations

on

reversing

of

task

The

business profits to

historical costs

than to the

current repro¬

rather

duction

pro¬

a

replacement

or

and

plant

dollar

of

cost

Inflation

equipment.

distorts

also

of

measures

the national

aggregate output; in

accounting system, measurement
in terms of current dollars shows

in

growth

a

1951.

in

allayed by referring to the pros-

the most com-

for the future. Even

information but for lack

want of

19

the

Gross

National

100%

in

the

United

Product

10

past

States

of

about

If,

years.

however, have pect that the government will take tracted business downturn, should
however, an effort is made to ad¬
b
significant margin of uncer- whatever action is required to halt one develop,.. would certainly be
just for the reduced purchasing
tainty which cannot be brushed and reverse any cumulative down- no easier than curtailing a boom.
power of the dollar, the growth
aside in appraising the prospects ward spiral.
As Geoffrey Crow- Assuredly, government programs in
physical output appears some¬
for the economy over
the long *ther so aptly stated in his vale- will
help
smoth
the
business
where near 40%. And if a further
teim
"
;
dictory article in the London cycle; our social welfare pro¬
adjustment is made to allow for
Higher Living Standards-The "Economist," April 7, 1956
the; grams, agricultural price supports, the increase in population, the
and
our
highly progressive in¬
urge for ever-improving standards new doctrine that government ca
expansion of output per capita in
of
livine
is
also
ranked
high 'mamtain th® economic health of dividual income tax structure are
the period stands close to
20%
among
the
forces
operating
to
among the
factors presumed to
be
—a
gratifying but more modest
cushion
an
economic
decline.
underwrite a growing economy,
measure of progress.
fought very
very
This urge is not, of course, a new tnougnt very eccentric, ana very However, expectations should be
Finally, our perspective on the
kept realistic; in adjusting gov¬
phenomenon; the novelty Whaps; ^t.onary, even
ernment policies to the needs of economy's rate of growth may be
is that the consumer today is not ^et
.?£ £
improved by observing that the
a changing economy, frictions and
only impatient for the good things
+i1lyc«JhtiS
economic
expansion
of
recent
of life, but has available to him
without the slightest^proof -that time lags are inevitable. Action
will
certainly
be
taken quite years is not unusually rapid nor
greater financing facilities and
^0W£ ^?>W'
'
is it the only movement of its
promptly in the field of credit,
more than ever before is ready to
t0 pe cuscnargea.
petent projections,

eccentric^and
to Question it

into debt in order to accelerate
Maintaining Full Employment— C but only after considerable delay
debate
in areas
involving
en
improvement in living stand-; Government responsibility for an . and
ards that might otherwise have to active
economy
is most clearly. Federal tax and spending pro¬
be postponed for some time. This reflected in the doctrine of full "• grams.
Indeed, impediments to
go

and
effective action
in
employment. In the United States, quick
as in many countries abroad, the * areas other than in credit policy
government's
responsibility
fort are probably , inevitable; even if,
maintaining a high level of em-, for instance, there should be gen¬
ployment—which implies a high .i; eral agreement that taxes should
level of industrial production—• be cut or spending increased, time

evident in the postwar
demand for housing, with its accompanying spectacular growth of
mortgage credit, and in purchases
of automobiles and other consumdurable

er

financed

which
are,
through instal- has become firmly embedded. Mr.' will be needed to devise and

goods,

largely

ment loans.

.This
tion

of

the

/

consumer

broadened

contribution^ to

tant
roent

credit

of

made

also outside his own country:

has

import

an

the develop-

«It is true that full

been

fjgg

steadily

an

indebted-

because it bolsters

ness,

-

consum-

buying, constitutes an expan-.
sionary - force
m
our
economy,
This, however, does
not
guard

er

against

^instability,

strated
the

by

recent

automobile

demon-

as

in
where

experience

market,

the large expansion of instalment

nhpraViVed lendin^+Avm^

credit

S^ritaited
1S55, but

the

to

banner

followed by a

was

nf

Jng

~ZCt"^rrkS
f°r greater
stability.

economic

This

question

especially apt
living standards
achieved through greater resort

where the
as

to

rise

The

credit.

to

of

use

credit tends

demands

raise

especially

substantially,
the strategic sector

in

cf automobiles

goods,

is

in

when

and

other durable

consumers

in

are

a

con¬

credit

the

crisis

and

to have been ruled out
institutional changes in our
banking,
and
credit
governments
have
been successful in their economic > system, and by a flexible orien¬
tation
of,, credit policy.
These
policy. But full employment has,
achievements are not to be under¬
persisted since the war all over s
the world, and it has certainly not estimated, they represent a major
step
forward
which may limit,
been due to successful economic
importantly the severity of cycli¬
planning all over the world."
iusion

appears

by

monetary,

that

growth of the American
in the postwar decade

of

rate

either

stop

duce their

terms

lng

justments experienced so far in
the postwar era may best hope
to reduce such fluctuations by re¬

more

standards

and

ment

thus

hberal

more

lax

and

credit

employactivity rise,
as

business

operating to widen yet fur-

iner

the

;

spending.

certainly,
for homes

swings

In

in

the

consumer

United

States,
sustaining the market
and a large variety of

consumer
goods in recent years
has entailed an impressively rapid
Increase in personal indebtedness

and the question is still open how

long this
can

rate

of

debt

expansion

residential

to

boost given!

throueh

onerous

™™tugb

fnsurance

programs'

tee

activity

building

Government'
and

the

and

™a?lnincentive'

given to plant and equipment outlavs

by permitting greater flexibility in charging depreciation
for income tax purposes. A Federa!

just enacted is de-,
signed to achieve large and rising
construction outlays on highways,
for

program

many

ahead,

years

Administration

also

the.

and

advocates

a

investment

also

much

of

reminiscent

is

past

output

for a realistic oersoective on eco¬
when"1
slack. In-: nomic trends becomes a painfully

expenditures

and

sales

were

the expansive business climate

of

the

postwar
years,
government
action has assuredly provided additional strength to the economic
forces already at work,
„

T.

Some
ConsiderationsThe record> however, also points
some real limitations to the
?fficacy of government in guaranteeinS economic stability or solving economic problems. In recent
tasks faced by governments in the

The Role of Government

The

active

nresenrp

lug growth trends in

nf

our

economic sphere—not only in the

cwppn

economy

thus permits us to look forward
with confidence to the attainment
cl

new

»ot

peaks of output but does

necessarily provide the

ance

straight and smooth.
of the forces
expected

^
the

assur-

that the road upward will be
now

others

some

may

as

™elb~bas been to reduce the risk

business contractions by prenfp irnnn^finnc1^
^ assH5ling
I t proportions of a boom. How'ni
to tbls end have
if
been p°pu]ar1 and refhp3^.
„

u

nf

GVG*1 ln
+S
stabilising generally favorable environment,

at work may

have

to

While

United States but elsewhere

a

be

be

«pnpmii

*

ki

increaslnf g-e™t ba* had only limited

cyclical instabilitv.

success in dealing with such cornPlex problems as, for instance,

this

agricultural

exposure

score,

of

the

economy

to

Misgivings on
however,
are
often




surpluses

—

not

difficult endeavor.

Rate

The

Growth

of

—

Before

projecting the growth of the past
into the future it may be well to

recognize that the past decade
can
hardly be accepted as repre¬

•

^

years, one of the most important

persist.

about the

ade

of the '20s.

same

in the dec¬

as

One of

most

our

careful and competent students of

fluctuations, Arthur F.
in the 1953 Annual
Report of the National Bureau of
business

Burns, noted

"The

that:

Research

Economic

period from 1921 to 1929 was also
one of sustained expansion broken

minor byclical declines;
too was the period from 1897
1907, 1885 to 1893, and 1867 to

only by
so

to

1873—if not the entire span

from

Each of these major

1958 to 1973.

expansions culminated in a specu¬
lative boom, each was followed

depression, and three of
depressions lasted years."

by deep
the
"

Hazards

of

Long-Range

Plan-

ning—The moral of this recital is
not

thatyl the

planning, far from
to
stability, could
source of instability in¬

long-range

contributing
become

a

stead.

.

]

Expectations—
months, the American

Setting Realistic
For

some

has been on a substantial

economy

plateau of production and output,
with
weakness
in
residential
building and passenger cars being;
largely offset by a rapid expan¬
outlays

sion

in

and

producers'

construction

on

equip¬

durable

in¬
government

The strength in private

ment.

in

and

vestment

spending, and the absence of ob¬
vious misuse of short-term credit,
provide

to

seem

fairly effective *

a

against a sharp busi¬
recession at this time. By the

safeguard
ness

token, however, the remark¬
rapid expansion of invest¬
raises a question whether
the rate can be sustained for an

same

ably

ment

period ahead.

extended

possibility of greater un¬
certainty
in
the capital
goods
sector of the economy cannot be
dismissed as capricious or negli¬
The

gible, particularly since other sec¬

fluctuate

tors of the economy may

widely in the period ahead;
business inventory cycle has

more

the

demonstrated its ten¬
especially
goods in evidencing

repeatedly

acity, consumer buying
durable

of

volatility, and the wax¬

renewed

waning of

and

ing

international

unpredict¬
domestic scene.
private investment

tensions adds a wholly
able factor to the

in

Weakness

activity would pose more difficult
problems for business and gov¬
ernment than any yet faced by the
States

United

economy

since

present

for

to

and

future

that business

infer

fluctuations, except those
of a
casual nature, can now be rele¬
gated
to
the
limbo
of
a less en¬
fraining from placing undue ,re-,
Such encourage¬
liance upon the limited efficacy lightened age.
ment of critical appraisal seems
of
the
government's stabilizing
all the more appropriate in view
activities.
v
of
the
avid predilection among
business managements and econ¬
The Need for Perspective
omists
for economic
projections
The present economic environ¬
looking 5, 10 or even 25 years
ment, it must be recognized, does ahead.
J':•
'• *
not provide a good vantage point
The disturbing thought here is
for a balanced
appraisal of the
future. Much in the current scene \ that the past record of long-range
is, undeniably without precedent projections has been dismayingly
in the history of the world, but poor. Even so basic an element

program to assist in the construe-, periods of exaggerated hopes and
tion of schools.
Moreover, credit prospects. After a decade in which
change and consumers policy has helped avert credit so many stimulating, albeit partly
borrowing or even re- liquidation during sags in business. transitory,
forces
have
joined
debts. Moreover, lend—
hands to push the economy to its
activity, and in 1954 contributed
(that is, size of down to the encouragement of private present record heights, the search

payment and life of loan) tend to

was

peak of cyclical bulge in business
activity, only to cut these plans
back
as
long-term benchmarks
are
revised in a cyclical down¬
turn.
Should
this come about,

,

buying moods, but results in sharp
cutbacks as market conditions or
eentmients

economy

ambitious investment plans at

period of World War II. >
expansion gnusfc.-likewise end in
The reappearance of a deep and
collapse and ^depression, nor does
prolonged depression, such as that
Dr.
Burns
draw
this
conclusion.
cal corrections in the future. But
of the '30s, seems unlikely in our
Although in the United States,
The purpose of the record is to
it seems equally important to con¬
day. On the contrary, the longas elsewhere, full employment in sider the possibility that govern¬ encourage some critical question¬ term
growth
of the American
ing
of
the
tendency
to
project
ment
action
may
not
prevent
recent years has unquestionably:
economy, like that of the world
recent trends' into
an
indefinite
wider
setbacks
than
the
mild
ad¬
been the 1?sult larf?ly °f, „br0ld,
economy as a whole, may be ac¬

™nt examples
rmrtinn

portion of consumer
income
is
available for discretionary spend-

be

can

liquidation spiral that accentuated
the economic problems of the '30s

wh'ethe?

justifiably question

may

year

slLmp

of

rence

,

increase in consumer

re¬

at present is that a recur¬

cluded

v

employment
maintained,

that

all

Perhaps

of mass-production indus-r
and
as
that
is
what
matters
in,the United States; it is most to the ordinary man, it pertherefore frequently asserted that
baps accounts for the general il-

tries

are

measures

quired.

the

use

unquestionably

whatever

re-' out

comments

further

'Crowther's

gratifica-Warding Britain's; postwar expedesires through rienee on this point have validity

in

speedup

carry

terms,

rather than in current dollars, the

.

Is clearly

real

in

Measured

kind.

extrapolations into unduly
the;

range

sentative of

Market

climate.

reflected
ments of

also huge

World

not

conditions

only

have

require¬

the

growing economy, but
backlogs dating back to

a

War

II

and, in many in¬
Great Depression.

the

stances, to
Demands

economic

"normal"

a

have

been

further

en¬

hanced

by high' and * at times
rapidly expanding military
re¬
quirements and in some sectors
of the economy,
future needs.

Moreover,
of

economic

a

by anticipation of

general
by

awareness

thus

the

a

has

rising

which tend to distort the
ment of

been

prices,

measure¬

physical growth; there is
real tendency to confuse

results

economic

of

inflation

with

will

importantly affect output
Moreover, as we
extrapolate into the future, even

a

so

decade hence.

this has already

eliminated all ex¬

cept the most casual and innocu¬
ous of business fluctuations is one
be subjected

that should

to care¬

ful scrutiny.

conclusion

this

That

have

may

application not only to the United
States
but
to
the world
as
a
whole

suggested by the latest
World Economic

is

Nations

United

Survey, an anual review of world
economic conditions. This review,
according

to

reports,
of

newspaper

concludes that the past decade

"no

provides

prosperity

either that the world has

proof

acquired

permanent immunity against the
business cycle, or that the national
and international remedies in its
medicine chests would be suffi¬

ciently potent to cope with an¬
other outcropping of the disease."
the

In

present

environment,

fairly minor differences between
the anticipated and actual rates
of growth will,
over the
years,

therefore,

produce frustratingly large varia¬

rising trend could well become a

One need only contemplate

tions.
the

complete
that

future

misreading of the
would
necessarily

emanated

have

from

long-term

projections based on conditions in
the 1920's, or the 1930's, or even in
1945

1950.

or

All

this

place

not

in

or

business

the

decisions.

cises of this kind

analysis

provided

and

that

suggest

projections
the thinking

in

omists

uncritical premise of
economic stability along an eversource

at

better

have

of

Instead,
are

no

econ¬

formulation

of

to

their importance is not

upon

the

during the past decade, than
painful corrections by
on the hazardous supposi¬
that we have attained the

tion

fluctuation-free economy.

New Bache Branch
Bache
New

opened

a

results is properly recognized.

In

busi¬

capital investment, it is par¬

ticularly urgent to caution against

long-

&

York

Avenue,

of

policies

acting

the

results

base

It is surely

court

to

highly provisional character of the

the

abroad.

assumption that fluctuations in
economic activity in the period^
ahead may be somewhat greater

useful tools

exaggerated and the tenuous and

translating

instability

pronounced

and

exer¬

policy-making,

view of the strategic role of

an

of

home

than

"

does

long-range

true

This confu¬

institutional factors that

tical and

ness

expansion.

is increased by standard ac¬
counting procedures which relate
sion

ductivity, the workweek, and the
many other economic, social, poli¬

for

expansion

exaggerated

population growth has repeat¬
edly thwarted the experts; it is
surely much more difficult to at¬
tempt forecasts of changes in pro¬
as

cepted as a foregone conclusion;
the bright promise of the future is
all about us.
But the thesis that

Co.,

members

New York C'ty, under
management of Harold W.

Freedman.

the

the

branch office at 724 Fifth

The

Trust Unit, under
Bert

of

Stock Exchange, have

Mutual

Funds

the direction of

Papanek, will be located in
new

office.

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

Bank Women's Ass'n
"I

"Progress Thru Service" will be

Meeting

of

not

tional Association of Bank Women

which

will

held

be

the

at

*

Radis-f

Vice-President

and

*

ideological force bent

Bank, St. Louis, Mo.
s.-i
The
annual
meeting will be'
opened on Tuesday morning by
Mrs. Mary K. Cunningham, Gen-!,

5

Manager Lincoln Office,
Northwestern National Bank,;
Minneapolis,
Minn.,
with
Mrs.
Orville L. Freeman, First Lady of
of

word
;

Miss

National

one

hand is

power

but also

as

an

see

Roberts,

be

to

expand its territory but like all big

have the

with

If

feel hurt

the

no

from

desire

they do not they [the United
think

and

other

man's

something is

thinking."

Nehru

—

wrong

Jawaharlal

\

Near

and

Home Jour¬

Look

the

at

Far

Following

luncheon the
members
will
tour
Minneapolis
concluding the tour with dinner

at the Town and

Country Club in

St. Paul.
On

Wednesday panel discussions
cover the following subjects:
"Correspondent Bank Service"

will

moderated by Miss Elizabeth A.
Brady, Assistant Treasurer, Bank¬
ers
Trust
Company, New York
City, N. Y.; "Consumer Lending"
moderated by Miss Elenore Poth,
First

Wisconsin
National
Bank,
Milwaukee, Wis. and "Trust Serv¬
ice" moderated by Mrs. Roberta
R. Ashford, Assistant Cashier and
Assistant Trust
Officer, Florida
National Bank, Jacksonville, Fla.
The luncheon
speaker will be
W. Harold Brenton, past President

ASTERN VIEW

mm. <rf-W:r§..
Petroleum Progress

of the American Bankers Associa¬
tion and President of the National
Bank of Des

time the

Moines, Iowa. At this

Jean Arnot

will

award

be

outstanding
.in

the

The

bank student
"A Institute
of

afternoon

will

be

devoted to visiting banks in Min¬

neapolis.
will

The

be

Express

members

the

American

Compapy at

reception

a

6 p.m.

at
-

NABW

of

guests

Thursday's program will feature
discussions on the follow¬

panel

ing: "Country Bank Management"
moderated by Mrs. Ruth B. Lund-

sten,
the

Executive V i c e-President,
National Bank, Buf¬
Minn.; "Employee Relations

Buffalo

falo,

—Customer Relations"

by

Mrs.

Juliette

moderated

D.

Mannheim,
C h a s e
Manhattan
Bank, New
York
City, N., Y. followed by
guest speaker, Mr. Harry E. Mertz,
Assistant Vice-President, LaSalle
National Bank,; Chicago, 111. who
-

will talk
Miss
of

:R

on

"Automation."

Arleth

Haeberle, Director

Women's Activities
a

d i

and

o

WCCO

at

Television

Station,

Minneapolis, will be the luncheon
speaker
-

at

the

Carousel.

Follow¬

ing luncheon tours have been
ranged to visit local banks.
-

ar-

A

reception given
olis

Clearing

will

precede
Banquet.

by the Minneap¬
House Association
the President's
:

On Friday morning the installa¬
tion of officers will be held and
the

incoming President's message

delivered.

The

adjourn at

convention

noon

convention
•

Shore

of

will

Friday. Arrange¬

ments-have been made for
toUr

of

the

a
f

post

North

Minnesota;"-—

With First California
(Special to The Financial Chronicle)

MODESTO,
Alexander is

Calif.—Joseph
now

ifornia Company.

■,*

.

W.

with First Cal¬

He

was

formerly

with William R. Staats & Co. and
Davidson & Co.




Though it dwarfs the
of ten years ago,

once

mighty tankers

this huge Cities Service; -■"

the

to

presented

woman

American

Banking.

annual

Reid

super

Joins United Western

tanker

may

some

Kirskovich
Western

is

now

Securities,

—

as

this

deal with

day be

dwarfed; itself. That is the enig-

-

With B. C. Morton
-

Anton

with

(Special to The Financial Chronicle)

>„

J.

United

1419

Inc.,

LOS

ANGELES, Calif. —Saint
Twine, Jr., is now with B. C.
Morton & Co., 1752 West Adarna
-

M.

Boulevard.

With Cunningham Cleland

o

•

(Special to The Financial Chronicle)

DIEGO, Calif.—Gerald

Zurmuehlen

is

now

ningham-Cleland

with

Company,

pheum Theatre Building.

nal, St. Louis, Mo., who will talk
"The

to how best to

the peoples of the world.

SAN

Bank, St. Paul, Program
Co-Chairmen, stated that the
luncheon
speaker will be
Miss
Margaret H i c k e y, contributing

Vision."

of such appraisals

us
as

they

Mrs. Elizabeth Hagerty, American

on

Study by

Broadway.
powers

missionary spirit. They expect others to

follow their will.

States]

seen

National

editor of the Ladies'

4,

Mr. Nehru is not alone in his judg¬

should provide clues

OAKLAND, Calif.
course,

First

Minneapolis

us.

(Special to The Financial Chronicle)

way.

V

E.

Bank,

the

giving the'

welcome.

Esther

on

making other peoples

also i;

Chairman*

Assistant

the State of Minnesota

big

on

"The United States must, of

*

Convention

a

another, different basis; It certainly has

Southern Commercial and Savings*

eral

as

»
v

the

of

sight of the two tremen¬

Soviet Union

just regarded

things its

Hotel, Sept. 18 through the
21st, according to an announcement made by Miss Virginia A.
Rehme, President of the associa¬
son

tion

ment of

21

■

Na¬

the

concerned at the

am

dous colossi. The

the theme of the 34th Convention

Annual

Of course,

As Others See Us

To Hold Convention
and

(293)

Shaw Co. Adds

to

Staff

(Special to The Financial Chronicle)

D.

Cun-

Or-

SAN
E.

MARINO, Calif.

Upton

has

been

staff of Shaw &
ington Drive.

—

added

*

Gerald
to

the

Co., 2304 Hunt-

Trie Commercial and Financial Chronicle...

22

Thursday, July 19, 19D6

(294)

Continued from page

4

wounds.

Those

leaving

our

ways.'

Meeting the Recession Challenge
And Preserving Our Heiitage
the

stand

part of the people

organized to with¬

not been

of world

pressures

inanimate suspension.

re¬

sponsibility, therefore it disinte¬
grated under the stress.
;
t7
Enters

Socialism

of

ideals
realities

the

tragedy

human

of

were

v

when

forgotten

temporarily
stark

freedom

of

suffering stunned our nation.
The American system appeared to
and

stalled

be

While

dead

on

in

were

we

penetrated

American
social

and

the

like

socialism

of

nomic
out

weakened

a

virus

the

condition,

center.

life.

Eco¬
broke

theories

insti¬

The

measles.
were

The

shock, lost confi¬
dence in their ability to solve the
perplexing problems with which
they suddenly were confronted.
people,

under

The

situation

created

at¬

an

mosphere that permitted the doc¬
trine of socialism

created

to

fill the

vac¬

adversities.
principle that
wealth for the people was created
uum

by

our

fundamental

The

the

by

people

fallacious'
was

gave

idea

that!

to the
government

way

inexhaustible

an

economic

wealth.

of

source

cities

Towns,

states

and

their
that

relinquished much of
sovereignty, together with
of
the people, in favor of
from

alms

the

Federal

Govern¬

ment.

of

forefathers,

our

have lost the leadership in
affairs

the

and

people.

'

There

experienced a low point in
American history with respect to
the
sovereignty
of
the. people
when, by default, the people per¬

who

those

are

may

able

are

for

practice

into

our

are."
of

words

nation

will

It

certainly

These

are

The

lack

of

characteristic

integrity

'of

the

that

is

socialistic

doctrine and the confused state of

people

our

clearly demon¬
strated in the early stages of our
recovery.
Though American in¬
dustry,
this

by

was

commerce and labor

pulled

country out of the depression
contributing more labor and

capital
tures

than

the

made

by

total

expendi¬

government,' the
those
in charge

credit

went

of

Federal Government.

',)

our

This

to

remain

true

a

long

so

democracy

the,,people

as

the

mply

wisdom

obtained

thus

to the active maintenance of their

sovereignty.

sovereignty

Such

tragedy not only brought
change
at
home, but

clearly

affected

our

main; great,, the people of this
country must reestablish a sound
of

set

foreign

our

euard

against

those

determination.

well-conducted

Everyone
the

will

ideals

erated

by

strong

in

economic

debt

of

meant

the

well

the

falla¬

philosophy

Federal

nothing

that

Government

because

owed to the people bv
and in effect was a

it

was

the people

that

the

wealth

they

creating
ft

e

b

i

r

The

people

s

have

have

principle
only the

succeeded

buried

was

of

sound

under

socialistic

in

the

A new "international set"

the

upon

scene

knew what

who

came

felt

they

the
doctrine
of
World
State,
thereby spawning the doctrine of
socialism
on
an
international

level.

This

led

to

the

delusion

that worH freedom could be
pur¬
with
the
eggs
of
the

chased

Golden Goo^p in the United States

Treasury. But alas, the delivery
brought socialism, commu¬
nism and neutralism to

our

door¬

step.
by the people.
child

of

an

Communism is the

inferiority

complex

the part of t^e peonle imposed
by terrorism.
Neutralism is the
on

child

of

discouragement




on

the

the

of

the

and

hearts

of

fellow

ple

from whence they come.
Therefore, freedom can only be

assured

for

ourselves

and

others

through self improvement and the
inspiration that such action gives
others.
We

make

can

have

better America.

a

great

a

future.

Let

us

enjoy it to the full by being real
people.
1

s

I

List

of

should

few
me

Recommendations

like

to

recommend

things we can do which
are
important if we are

build
w°

an

now

even

a

to

to

greater nation than

possess.

First, We must begin
at the
family fireside, for it is here that
the

concept of the family institu¬

tion is instilled and the characters

of
It

our

is

have

a

children
well

are

known

formulated.
fact

that

a

weeks of basic training

brought

many

soldiers safely

home.

Fourth,
to :the

the

-

union

with
in

that

prices

On

—

do

consumers

play

not

is

even

of

100

lose one- 7
talented
What

American

youth

entering

grade, 20 enter college,
complete
college,
and
only

13

a

three

major role in determining prices.

more

first

the

believed

50%

we

disappointing is the
fact that out of a random sample

basic

several

overall,

and one-half of the capable.

based
on
foreman
and

surveys

stewards

(1)

In the

third of the exceptionally

is

industries.
*

*

graduate

and U

science

in

(2)

quality of our

and

extent

elementary and
We must ade¬
quately compensate our teachers
so
as
to insure that their only
care is the* children.
It is of ut¬
most
importance
that
we
be
certain of the teaching of sound

believed

secondary schools.

insure

"of

future

the

which

to

school

it to

the

fullest,

protect them from its

on

the basis of a re- 7
that there has

cent study, reports
been

the

our

children.

our

our

fondest dreams.
Sovereignty

V

Fifth, the people of the United
must reassert their sover¬

eignty with their representatives,
whether they be local,
state or
Federal. Fortunately, many able

see

that all. of

are

capable

sound in character.

decline /since

consistent

a

the

On

trols,

question of price con¬
of teachers believed
not affect personal free¬
77
7 / ••'..!

our

as

'77

repre¬

well

as

J,

basic

our

economic

an* outmoded mathe¬
curriculum has remained

matics

relatively
most

In

among

freedoms

>

knowledge,

42%

these do

to this attitude on the

answer

part of students.7 It reveals thatrs
despite advances in mathematical r7

certified

are

unchanged

states- a

teach

to

1894.

since

~

be i
mathematics

teacher

can

formal training in the r
subject at the college level.
: 7;
to
•*
Coupled
with
an -; antiquated
all of these. Indeed, controls pre¬
curriculum
and
inadequate teacher
vent prices from performing their
basic and
fundamental .function preparation, we find a growing "
shortage
of
teachers.
In mathe¬
in our
economic system—which
is the direction of production and matics and science in high schools,
without any

freedom to

invest, to produce and
consume.
Price controls limit

consumption.
Perhaps
know

believe

4

you

that

than one-half the number of

the

teachers

ated.'-' / ''i

largest
industry

share of

Let

of

the

income

from

owners.

This is

conception

less

will be surprised to -teachers needed

52%

that

,

an

that

goes

lead

to

atti¬

on

us

•cerned.
data

tudes and/actions which can have

serious r- repercussions

being gradu¬
,

now

look at the techno¬

logical race with Russia so far as
scientists and engineers are conf-

to

economic mis¬

can

are

7

islartive

many

according to
Congressional Leg-

-At present,

from the

Reference*

Service,

the

is that United States has approximately
No doubt you. believe as I do
graduate engineers ; and
the largest share has always gone *535,000
that there
has been
a
growing to
employees in the form of wages 225,000 graduate scientists—or a
total of 760,000.
tendency to debate personalities and salaries.
rather than issues, both in politi¬
Russia, on the other hand, has
Considering the perilous state of
cal campaigns and after election
engineers
and
160,000
economic
understanding
among 540,000
to office. Here again, the people
scientists—or an overall total of
persons in industry and teachers
have
it
within
their
power
to in
700,000.
In
1956
Russia
will
gradu¬
high schools, it is not surpris¬
reverse
this trend. Let them ex¬
ate
approximately
60,000
engi¬
ing that high school students are
press
their abhorrence of such
largely
economically
illiterate. neers as compared to our 26,000 in
tactics at the polls. I would urge
the United States. For the 10-year
Surveys show that 57% believe
a virile public opinion which will
profits range from 25 to 50%; 52% period 1950 to 1960, Russia will
take
disciplinary
action
when
1,200,000 scientists and
believe basic industries should be produce
those seeking or holding political
regulated by government; and 27% engineers compared to 900,000 in
office
indulge in practices un¬
the
United
States.
believe
the
government
should
becoming to a representative of
also guarantee annual wages.
the people. Public indignation is
Crusade for Technological
How can we preserve the Amer¬
still
the
most
powerful of all
Progress
ican capitalistic system when so
human forces.!
If we are to continue to advance
few understand the true meaning
Sixth, it is only by exercising
4he standard of living of our peo¬
of free enterprise?
How can we
it
that
the
sovereignty of the
ple - and maintain world leaderspeople remains strong.
Because expect people of other nations to
ship, we must launch the greatest
local
and'
state -•» governments .accept its virtues, if our own peo¬
crusade for technological progress
vacated many of their true func-' ple are not enlightened on its true
,.

,

fronts.* -The fact, of course,

-

tions, they went by default to the
Federal
an

is

we

best

to

the

their

reestablish
and

it

state

people can see
representatives,

these

functions at

levels

value to

of govern¬

our

ever

nation?

the
in

cooperation

with

all

of

our

economic enterprise, put on

the most intense

lic
of

campaign of pub¬

enlightenment
economics

and

on

the subject

the

American

wars

beginning of time fear

and wars themselves have

stimulated great

segments
-

of

conceived by man.

From the

that organizations like
Reserve Officers Association,

I propose

is

fact that government

when

talk

ment.

Since

Government.

accepted

local

only that

enjoy

to

Foundation,

is

Reviews of Teachers

'

States

they

may

dollars

about

investment will be

Reasserting

and

also

billion

a

Moreover, we dom.
adequate facilities lip This is startling because

on

greater than

effort to

sciences, we are losing ground on
almost all fronts.
The Carnegie

45%

many

society.

provide

The return

.

that

—

hundred million. No wpnder

one

social conduct in our children that

in

even on money

*

together in full
operation, the parent and teacher
must generate the knowledge, the
wisdom and the proper sense of
Working

must

pro¬

people are not concerned 1910 in the proportion of high
government expenditures,
school students taking mathemat¬
or
the public debt, if they think
ics. Indeed, 40% of the students u.
it is only one-tenth of what it
voted
it the subject they
most '0
actually is.
,
disliked.
;■
.i ■ ■ ii
-v. *'■ /:o/. $ .1
The
opinions of teachers are
''
The Carnegie Report may have/
co¬ also interesting.
V >

principles.

will

controls

state

the

(4) And

the

in

since

duction.

must be diligent as

we

teaching

So it is with our children.
We must live with them and train
tbem well for
life—not
but

in

interviews

men.

sentatives

A

endeavor both with respect to

ate.

of misconception

extent

revealed

the

leaders who are developed
only be true leaders in pro¬
portion to the quality of the peo¬

f°w extra

Socialism is the child of default

and

can

best for the peo¬
ple of the world. They preached

enjoy.

by the Opinion

tal

your

The

was

which nological advance. Unfortunately,
the incompa¬ we are failing miserably in this

possible

communication.

and

principles. We should bend every

We

theory.

people

convictions

merely
tranquility of
Tranquility rests in

reflection

to

■;*

supply of specialists
in these fields to insure our tech¬
sufficient

a

our

Together, you can generate

progressive betterment of
their
existence as members of society.

economic

of

nature

economy,

grounded in science and
engineering. Therefore, it is es¬
sential that this country educate

under¬

country

our

essential

made

The

people
represent
us.
Unfortu¬
nately, however, there
are
too
people only so long as they enjoy many who are not capable, or who
the
necessities
of
life
and
the lack full understanding of sound

bookkeeping

transaction.

of

gen¬

their actions.

in

people.

remember

society

a

minds

You

will

Peace between nations is
a

in
the

our

ity are

features.

responsi¬

your

a

American

V

embrace

to

institutions

their

the

cious

society

strive

and

We became enamored of the
Golden Goose which was said to
reside in the United States Treas¬

;

be understood and appreciated by
the people throughout the world.

the

ury.

con¬

society and they must
the violation of
ground
rules with rugged

pol¬

icy.

rules for the

ground

duct of

A

the technologi¬
cal foundations of our productiv¬
In

On capital — 39% believed ■engineering.' ,
that capital is not productive.
7
Losing Ground in Engineering ..
(3) On communism—59% be¬
*;
■;Training i;7.7
' y-7\7',7

fit

themselves through education and

sure-footed

great

a

consider

children

wisdom.

,

Credited

delinquents. Though you may

not

as

our.

dimensions. I

two

suffi¬
lieved that under a communistic
underlying strength of a cient public opinion to result in
7;;.; In preparing young people for
is determined by its people. higher standards for all types of system there is no need for capi¬
careers in
engineering and the

The

a
small group of men to must effectively manifest itself in
indulge themselves in the fantasy every phase of their society.
%
that they knew better what was
7
How to Remain Great
good for the people than the peo¬
If the United States is to re¬
ple themselves.
7

Incorrectly

adults

as

and

bility,
really

of

the

supply of students and of teachers. 7
Research Corporation shows that ;
Today, one out of three high
fewer than 6 out of 10 Americans school students in the high ability
believe that the good features of range does not go to college. - Of 7>
our
American capitalistic system the two out of three that do go on
outweigh
its
less
desirable to college, only one-third gradu- :

stability, are in¬

this

/■',
to

now

challenge

has

This

time.

turn

us

technological

7:',

rable standard of living we

impression¬

well

matter of fact it is
own
benefit regardless of chang¬
yours. That this is true is
ing conditions.
because the people are masters of
The destiny of a nation is not what
they hear and read. ;-s
determined at its Capitol, but at
Therefore, I would urge you to
the myriad of crossroads through¬ raise
your
own
standards with
out is geographical expanse. Plato
respect to your acceptance of the
once
wrote, "The State is what content of all forms of communi¬
it is because the people are what
cation,
for
the sake
of your
they

has

the

about

mitted

Government

people
stand

by reading or hearing
exploits of criminals

fluenced

them and

understand

to

them

put

sound

let

economic system—a system

that

of low emotional

fundamental
principles live forever. It is just
a
que°tion of weather or not we
that

respond

Challenge

■ '

Ninth,

of the ironies
relatively few

one

that

time

our

A recent survey

able youngsters, as

ex¬

7/': '7/

Eighth, it is
of

we

claimed

is

It

say

that times have changed. I would

and

'-r.

: W

Increase Economic Education

of communication.

'

,

Two-Dimensional Technological

the

-

must recognize our
all responsibilities in the broad field
Thirds

world

influence

tion.

pursuits.

in religious

we

of

respect

.

will

American to accelerate his efforts

the character and

dilution of

the

principles

is

taxation

pand its bureaucracy only to the First, how to produce and meet
extent of its ability to raise funds the demands of a dynamic people ;
through
taxation. Therefore, to for ever increasing wages
and
insure against the abuse of Fed¬
higher standards of living. Second,
eral power and to avoid syphon¬ how to meet the technological, of-: > :
ing off our creative wealth into fensive that Soviet Russia and
7
unproductive channels, the people Communism are waging against 7
should limit the power of taxa¬ America and the free world.

our

surest pledge
you

its

exert

can

As de Toqueville once
wrote, "The safeguard of morality
is religion,
and morality is the
best
security
of law and
the

fore¬

our

capitalistic system that it is pos¬
sible to accomplish.

of taxation- should
of

power

handmaiden of unlimited govern¬
ment.
The
Federal
Government

society.

*

institutions

and

only

We

a

that

intended

never

tool of social experiment. Un¬

a

limited

of freedom." I think
accept the wisdom of
fathers so wisely conceived, we these words. One's denomination
enjoyed the respect of the people or faith is not of primary im¬
throughout the world. People of portance. The vital factor is that
we have a religion not only with
foreign nations sought to copy
spiritual quality but also with
our political, social and economic
integrity
at
its
core.
institutions.
Since World War I, human
Therefore,
I / would urge every
to the extent we have permitted

blanketed

with the mildew of security.

and

ourselves

into

injects

.

tutions of freedom

guarantee

must

we

be

confident

am

that the power

7

■'

I

forefathers

our

of our religious faith
that we may utilize the strength,
as well as the restraint,
which it

Whom Should We Emulate?
long as, we emuTated the

; ideals

America

The

Seventh,

are

resurgence

So

Virus

The

'

■

Second,

state of

a

—

who

us

for
the
educate must mend our

teacher to

had

of

children

technological ad-"

vances.

Unfortunately, we have over¬
one
important considera¬

looked

tion in our

pursuit of peace.

That

,

<
-

Volume 184

Number 5552... The Commercial and Financial Chronicle

-

23

(295)

is the fact that had people stimu¬
lated the advances in peacetime,
would

wars

have

never

occurred.

Remember

always, the world will
ally only so long as
our country is the prime source of
technological contributions which
foe

will

benefit the lot

who

comprise

world.

of the people

the

of

rest

the

All the benefits of techno¬

logical advance will raise our own
standard of living.
But, equally
important, as we make them avail¬
able

to

them

others

for

working with
salvation, we
their
everlasting

Offers Kansas Power &

their

who

busy

are

betterment

own

never

have time to go to war, providing
others

preoccupied

are

task.

same

We

with

the

;;

stimulate

must

youth

our

to take up

technological pursuits,
assuring the technical man¬

thus

power

of

foster

must

to

necessary

quirements

needed

to

and

nation.

We

other

accelerate

the result

of

every

work

a

greater production

an

tral

of

270,000 shares of Kansas
Light Co. common stock
par
value), at $23.25 per

The

company

000
to

of

of

proceeds

by the
in part to repay $3,500,-

finance

mainder

of

the

The

proceeds

Electric

of

area

cen¬

about

popula¬
of 650,000. In addi¬

revenues

a

nues

be

for

and

gas

reve¬

31%.

operating

of

revenues

added to general funds to be used

Kansas Power and Light have in-

in

creased

the

program

construction

continuing

which,

it

is

estimated,

to

from

$29,073,764

$39,915,084

in

1955.

in
In

12

1956,

1951
these

months

Securities, Inc., has been formeif

operating
revenues
$41,743,063 and net income,

with offices at'38'Richmond Ter¬

preferred

April

dividends,

$4,948,405.

was

its organization in

share.

1924. The
is

rate

.

„

Two With

per

,

MIAMI

231

Mr.

South

Swanson

Swanson

Central

La

Republic

Salle

a

of

J \7

Vail

o

■expand,

away

July

13

Mr. Brokaw

the

at

was a

age

a

The

and
must

We

grow.

are

big

a

country and must continue to in¬
crease

capacity.

our

It will be

if

growth

in

Let

in

the

for America

force

any

to

segment

any

economy.
ment

sad day

a

permit

we

our

a

mo¬

relax for

us

world's

deter

of

in¬

for

race

dustrial productive power and we
shall find other nations, who are

growing
We

leaps and bounds,
between us. v ;

by

closing the

gap

must

develop a spirit of
dignity and pride in our nation, in
our enterprise and in ourselves.
James

Russell
Lowell, one of
England's men of wisdom,
pointed the way when asked by a
woman, "How long do you think

New

the

American

Republic

will

en¬

dure?"J He answered, "The Amer¬

ican Republic will endure so
as

the ideas

tinue to

of its

founders

long
con¬

be dominant."

To be born free is

our

good for¬

tune in America in contrast to the

21

once-independent nations

now

under communists domination and

control.

\■;j.::

To live

-

and

free

is

opportunity

our

responsibility. To die free is
duty and obligation.

our

BREAKS
new
on

Denver Fin. Editor

HIGH-FREQUENCY

THROUGH

Transistor that

In the background

pair of wires.

a

I

Shown in the circle, about actual size, is the Bell Telephone Laboratories

BARRIER.

performs at record high frequencies. In telephony, it
are

of the

some

many

amplify 2500 conversations

can

sent

other types of Transistors developed at Bell

simultaneously
LahgiatO'rles,

Of World-Tele-Snn
Robert Denver has been ap¬
pointed
executive
head
of the
^financial department of- the New
""York World-Telegram and Sun,
Succeeding Ralph Hendershot, who

Latest Bell

.

^resigned
cial
of

after 29

editor

to

years

become

Industries- Corp.,

as

System Transistor

Opens the Way to Many New Uses

finan¬

Chairman

K

holding

a-

Entirely

new type

provides ultra-high-frequency amplification

company.

Mr.

Denver, who

news

editor

gram

&

paper

J6r 23

,

of

the

had

Sun

was

financial
with

the

^

years.

k

-

A.

the Bell

40

Exchange Place, New York
City, as Manager of the Trading
Department.
Mr.
Greenfield, a
class

of

of. Dartmouth

1955,

in

the

recently resigned
Telephone Co.

from the American

J. D. Creger Adds

(Special, to TheJFinancial Chronicle)

Weiter

have
J.

invented at

eight

Laboratories

years ago.

duced
an

v

it$ cost. The latest invention is

entirely

D.

been

added

to

the

Creger & Co.,

124

North Bright Avenue.




ments

re¬

new

type

of ultra-high-fre¬

chemical

possible by

the controls of

layer of germanium

This major
have

an

inch thick.

achievement is destined

far-reaching benefits in the

and manufacture of the

tor

shows how the money

develop¬

microscopic

layers. The heart of the

new

creates significant
develops them into use¬
telephony and the nation.

advances and
ful tools for

use

tiny amplifier,

especially for electronic applications in

The Transistor is

telephone and television transmission

can

systems.

ing electric signals. It

can

do

things

can

do—and

Its broad

frequency band also offers

great possibilities for color television
new

invested in

telephone research

sets,

guided missiles and electronic

brains for

The

new

military and business

uses.

a vacuum

TELEPHONE

tiny device that

besides.

tube

Yet it is

amplify¬
many

simple,

rug¬

ged and long-lived and requires

only

a

vacuum

fraction of the
tube.

Bell Laboratories Transis¬

BELL

a

do amazing things in

more

Transistor.

in

a

only 50 millionths of

to

developments that

have increased its usefulness and

Transistor is

was

Since that time there have been many
Bell

It is made
-

WHITTIER, Calif.—Charles A.
Derrick, Orville E. Hanes, Doug¬
las P. Howard, Paul K.
Portugese,
William
R.
Scott, and Cecil J.
staff of

was

tremen-

Telephone Laboratories. It

first announced

quency
.

since it

made

Greenfield

has joined
the staff of Greenfield & Co., Inc.,

graduate

Transistor has

dous progress

Trading Dept.

Of Greenfieid & Go.
Peter

before possible in this mighty mite of electronics

World-Tele¬

been

The

Heads

never

.

;

of

80

of the New York Stock Exchange^.

-

woman

facilities

passeil

former member

manufacturing insti¬

our

tutions must

tb«s

Burrett.

1

Brokaw

through

goods

ai

VJllTord V.tSrokaw;
Clifford

with
,

under

Arthur

program.

before.

is

Hager.

rrcc

Street,

Company.

of

and Fred W.

have

formerly

was

Avenue

management

joined the staff of White, Weld &
Co.,

securities

Palace

BEACH, Fla.—Hirsch &.

Washingtpn

White, Weld

C.

S.

Co. have opened a branch at 1610

(Special to The Finaj^jtial Chronicle)

Duard

Louis

Hirsch-Opens Branch

cur¬

$1.20

CHICAGO, 111.—Gardner Brown
and

the

in

engage

business.

principal of the firm."

•

annual

to

race

The company has paid common
stock dividends in each year since
rent

ISLAND, N. Y.—Fund

30,

ended

total

after

ac¬

of operating

natural

about

Total

currently

about 68%

revenues

re¬

will

an

gas

and

miles with

excess

count for

borrowings incurred

construction.

in

the

were

sup¬

tion, the company supplies steam
heating service in Topeka and bus
passenger
service
in
Emporia.

stock will be used

bank

northeastern

square

tion in

of

sale

this

in

Kansas

27,500

share.

common

sources,
secured

be

Fund Securities Formed
STATEN

Our country must grow,

transportation

our

service

Power &

($8.75

will

from

techno¬

and

man

18)

internal

balance

net income, after
dividends,
increased
$3,039,946 to $4,459,915. For

preferred

better world

such

never

as

(July

yesterday

from

the

periods

same

this

of

create

can

salvation of this country is

services.

headed
by The First Boston Corp. offered
issue

$26,-

Of

through future financing.
Kansas Power and Light
plies
electric
and
natural

underwriting group

publicly

1957.

facilities

our

We

better America and

Tenth,

re¬

establishment

logical advance.

must

meet the

our

the

laboratories

Light Common Stock
An

additional

an

$15,391,000 is expected to be

available
and

own

acquire
goodwill.
People

require

641,000 in 1956 and
total

by

their

shall

as

Group

trusted

a

for

will

First Boston

SYSTEM

power

of

a

24

The Commercial and Financial Chronicle...

(296)

policies.
chief

Mr. Marshall will be the

administrative

responsible

News About Banks

eral

for

officer

the

bank's

NEW

BRANCHES

NEW

OFFICERS, ETC.

Savings

Bankers

and

Council

he

Bluffs,

worked

during
high school and college vacations.
After his graduation he worked
with the Council Bluffs Bank

Paul

Dr

annointert

F

Genachte has been

commercml state r«nk a~i> trust

Atomic

company of new york
June 30,'56 Dec. 31,'55

directorof

the

K Division
nS

At

of

the
the

Manhattan

of

New

Energy
T

Bank

Stewart

Mexfco
mexico,

and
jseigiumana

of

sociate

Dr,

An

as-

nn

Ca*h and due from
banks

«

•

22,044,060

__—16,688,414
26,858,577

22,486,413

Loan. & discount.

56,055,004

& undivid.
profits———

52,873,356

1,831,424

1,739,234

holdings

rity

Surplus

stad, now Vice-President and Di¬
rector

Corporation, Dr.
Genachte
in organizing

assisted Dr. Hafstad

Manhattan Atomic

the Chase

Division.

ergy

En-

Bel-

of

native

A

gium, Dr. Genachte is a graduate
of Brussels University (B. S.
32)
and

Massachusetts

the

Institutes

fornia

of

Call-

and

Technology.

His

engineering background
ineludes experience as power consultant

Ceylon

in

World

the

for

j0hn

t.

,

_

-

,

--

of

director of the Central

0f

New

York

the

announced

has

appointment of Lester T. O'Connor

as

of

dent

the

Mr>

bank>

entered the bank's
tember

He

1936

{^New

Vice-Presi-

Assistant

an

York

1939

and

named Chief Counsel and At-

was

torney of Record for the bank in

July 1955.

,

Managers

of the Inter-

national

Division

of

Corn

Exchange

Chemical

Bank

of

New

York, Harold H, Helm, Chairman,
announced.

1937.

Berzin began

Mr.

Chemical

with

career

his

Bank

in

Experienced in all phases of

international

banking, he is a
specialist on the Far East.
Mr.
Swan began in the bank's Credit
Department in 1946 and has been
a

Savings

of New York

president.

currently

and has special-

of

New

York,

President of the

and

Assistant Vice-

as an

On

Feb.

Nov.

Bank

30, 1950, he

ecutive
Dec.

1,

joined the

Philadelphia

the

Mr.

1950,

with the bank since March
in

1941

he

1,1933.

director

was

1954,

He

tt

as

director. O11

a

this

position

Sent

on

Bank

of

Bank

Westchester

of

President of

as

the Westchester Bank

and

.

on

Company, which
WIUCI1 became
PCLdlTlC IN
National
llOIlol.
a

Trust

*

office

of

the

currlncv

"as*As'

Hugh

of

ficer.

A

t>w

-

?

vr

i

30, the

a

eertifirate

ftf' Mayville,
tv
of

at

the

of

Tr

jamestownN

with

Y

1^7

N.

Y

Bank

Chester

Hart,

R.

Nichols, Jr., Robert T. Wattle and
Leo E. White have been appointed
Assistant Managers of Chemical
Corn

Exchange

vision at 165

Bank

of

New

Broadway, Mr. Nich-

ols is at the 46th Street and Madison Avenue

Office, Mr. Wattie is

at the bank's 41st Street and Park

Avenue

Office

located

at

Mr.

and

the

49th

White

Street

is

and

r„« Avenue

a,ki„

nounced

t?

w_,

July

on

Simmonds

Total

A JuSTEy

Gordon I

were*

18

bv

the

at

*

Other

charter

of

the

under

First

Treliirer George^ W sfott
sistant Trust Officer and Wilbur

voiionoi r<uxr

*

*

hv

Assistant

ftf*—* «"-• ««The

#

#

6P5.293.711

619.825,667

18,022,978

14,861,693

&

a
hnH

tbe

'\-n

designation

__r

,

,

D

Western National Bank of Rapid

Co.

£lty> bo* Dakota, a cbaldfr. bas
been lsslie1?
<June
®
g™P°nsned bank wltb a capitalof

iCOri& $100>000 and surplus of
Ba?k
^ amount. In the primary
<R4 500.Bank

zation

ncn

Walter

desicnated

and Rus-

„

Halvorsen as Cashier.

An addition of $100,000

". i:

k.®

a

organihas
been

Pailing

PieTident

as

,

seB

$5,500,000 and undivided profits of
not less than $3,131,793.
*

.,

„

the

nf

a

tbe

of
c

of

\

u

Cn

•

*

Trust

title

the

Bank

National

*
-4-

made to.

of

Rank^f^Irk^n6 Tenn"h v^he^tl

Aug' 2 has been set as an open"

common

^

pptprchur^

Pike

resulted in increasing the capital
Z %
bank ? from $200,000 to

at

the f
Petersburg
at
etar?P"r to Pike
Rkhard of. the

on

JT 22' k a.

$300>00°

jptjs

>

Following

tlia" staff members will include James
; i; T. Neale, Mrs, Frances Elko and
Hivi^onri nf
Mrs- Helen Mika. ;
All banking
thp mnital
services, with the exception of

a

meeting of the di¬

promotion of two men in the Bond
Department and one in the Trust

Department.
Clovis Hunerkopf,
$100 nnn
o/Tnnp 90
formerly Manager of Operations
As-deposit boxes, will be avail- of the bank's- Bond Department,

time

same

Morison

#

501,639,555
752,785,314

profits

Under

National

ihe

?1'666'145*

404,805,825

669,090,366;

^

s'treet &^aS K

Albert"c

$

resources 1,912,304,567 2,014.708,521

undivid.

of Scrantoij. At the effective date
^
V'7 "o"+"u " """
of thr-merger, July 2, the con-

^

President^

Jr.

appointments

tt..

Dec. 31,'55

$

rnLw,

v

has been with the East River Savings Bank since Jan. 7,^ 1931.

;
-

mich.1

Detroit,

of

jUne3o,'56

was

M.

Stephen

bank

i:from banks—
foJlnwine ^cSi^hcides*

o

nn

$100,000,

National

Of-

K^d"^ 1'75°,25°'647 1,88°'286'872'

rwtpnrv'

anprovin^

Mayville,

stock

First

Assistant

Trust

%

"

1

into.-the; First National

?taak
°J
?

trnst

Assistant

from

Assistant

to

national

r*

®

issu-

Waugh,

^ck^^na Trust Co. of Scran-

oJ the ?
^ nJ?-rgfr\?vy
tinuing First National

the

J.

Cashier

TnnSn/?ha ufip ^ ?
J nf T. n? °.°° ,ln 250'°2?„shart.s 01 c°mmon,
effective
as of June st0ck,-par $18- each; surplus of
merger of the State Bank

nf

anrp

Comptroller

Jun^29

on

announced:-

Trust Officer to Trust Officer and

.

mado hv thp

was

also

are

John A. Wilson, from

yr.ar.'t,0.

rm,r

First

*

,f

Announcement

tional Bank

Jr..

Cashiers,

'

1946.

in

The following changes in the'
staff-of the Manufacturers Na-'

Robert

Ji\

Ete vine

sistant Auditor.

Bank find

Company,

Manufacturers National,

other

Paul

and

Assistant

as

Trust

and

UOIIipdllJ,

common

Manager

v

director and Executive VicePresident of the Manufacturers

rreaencK

L

Satterfield

strunce

$725,000

1

President of

The

1949.

Charles

D.'

elected Ex-

and on
became Presi-

hold

Miles

Henry

$i .OOO.oVthe ~er
S'aeXrfthe bSK ^ eiLfeTZZ
effected
under Te
the
SfarlS
charter
feller Center Office. Mr. Schardt ^ f^cteJ
and
title of the
First
National Va.
pointed. Assistant

announced

inciuaea

and^William"j

Troy,

since its organization in 1954. Pre-

chelle

since

bank

of

joins National

National

into
ap-

elected

the

R

was

he

will

he

Westchester

School Savings Department,

Henry H. Schardt has been

29

Manufactur-

^Tyner

the

of

'ir¬

was

a

Heldring, Hugh J. Jones, Norman

Vice-President;

31,

Chief

Forum of Group IV, The
Savings Banks Association of the
state of New York, has been appointed Assistant Manager of East
River's Spring Street office effective July 5.
Mr. Alessi has been

Arthur J. Fushman

the

Inquirer"

mwappoinimenis

National

ers

clerks

member of the International Di-

1951

Bank

30

*

National Bank of Detroit, Mich.,
it was announced on July 14 folpromotion of Robert lowing a meeting of the bank's
h. Potts to Assistant Vice-Presi- board.
Mr. Fushman's banking
dent and the appointment of seven career began in 1917 in his native:
new officers.
The "Inquirer" ad- Indiana.
He ; served as Detroit
ded; "Robert Potts is in the bank's Manager of the Reconstruction Fi-s
Out-of-Town Division and calls nance Corporation during World
on
correspondent banks in New War H and as President of the
Qf

june

the
Assistant

June

In-

,

,c

t

viously he served

*
.*
Alessi, Assistant
AICS51,
JEOOIDIQIH Mana-

Fred F.
i 1CU 1,

of

Controllers

*

Gf the Philadelphia National Bank

he joined Bankers Trust Company

until

admitted to

*

reported
that Frederic A. Potts, President

Rank

i

dent.

in

iSSUe

director of the

a

stitute of America.

of
Canainharie
CQrre|Ponaeni oduss j j incw
Cnrnoratinn in Wach-'
BanKj°I uanajonarie, Jersey, Delaware, Virginia and war Assets; corporation in W asnHe served as Secretary of West Virginia. He has been with ington, D. C., prior to joining the

N. Y.

O'Connor

was

its

of

*

*

"Philadelphia

the New York State Bankers As-

employ in Sep-

Bar

*

,

„

Emigrant Industrial Savings Bank Vice-President and

...

_

President

Madden,

Bank*
,,

a

wa4ionai

Marshall

for-General

Research

of

Motors

un-

"1 his appointment as an Assistant
National Bank Examiner. Later
Mr. Marshall became a Vice-President and

103,162,117 100(227,457
92,845,852
90,581,972

resources

Deposits

Haf-

R.

Lawrence

$

$

Total

nnhlic ntilitv consultant

a

Rpllium

in
in

an-

Genachte

on
Tulv18Dr
nouncedonJuly
lo.

VPSr<5 a<5

Cn se
York,

President

Baker

nnifnS

Phase

„

In

Bank,

where

Iowa,

capitalizations

•

operations.

career

REVISED

$1,000,000 as a result
stock dividend of $25,000.

a

gen-

Mr. Marshall began his banking
with
the
Council
Bluffs

CONSOLIDATIONS

000 from

and

Thursday, July 19, 1956

*

a

cWir

a<?

Lowell

Mass

has

beeif

the vault was elected Assistant Vice-Presi-

able at the Iocation.

raised

SJS
SUSbT*
*
*
*

iK'Sffl
Rafp.<? said.

Thp

new

representative

office will be

the

of

Bond

De-

New

69th

bo,
heart

Avenida

4,

branch

No.

97-62,

becomes

the

First

National

City's third in Venezuela
tinues

and

trend in the bank's

a

over-

expansion which in the past
year and a half has witnessed the

seas

addition

of nine

T.
L.

T.affertv

a

Lafferty,

a

*
A..

Jir'f

K

*

.

business at

_

given

was

on

.

,

_

bG ."?erged iatatbe three additions will give the bank Georgia Security Dealers Associalu" R/rifw
^tockho.ld.ers —which was organized on July 17, tion. For eight years he was a
?f the Millburn bank receiving 4922—a total of 16 offices in six trader with the Chemical Bank &
four and one-sixth shares of the vir»ir>io ^ifipc
Ac
it
Trust ComDanv of Newr York. Mr.
^!tisha[eo+ °/ ?e Virginia cities.; As it rnmnlptpd
completed Trust Company of New York. Mr.
u

*
.

Approval

Julv 2 bv

capital^ stock of
National ouue
State for
New' York~Stafp"p"ankiV,« ^by ^^^^K
ui ivcitiuuai
xur

the

partment to
rn»n

own

111 John Street, New York City.

installations

new

William
William

overseas.
overseas.

he maintains his

"LbKe ^°.n J„ru.?t. c„»mP?ny

„of _Glen

rninmWo

i

1

u„

j

Trust

served

at

the

Panama^

Caracas,

^

Lima and Bogota branches.
rpi

•

The

4.

+

J.

appointment

Becker

as

J

of

•

,

Frederick

Vice-President

a

of

.Manufacturers Trust Company
New

York

Horace

isr

C

is

Flanigan

-

Becker

is

in

of

and

advanced to

was

Vice-President
*

an

in

1952.

*

*

Assistant

*

*•

a

resulting increase

\° $540,000, com- in the bank's capital from $4,900,-*
108,000 shares of the par 000 to $5,212,500. The directors of
value of $5 eacbNational
State
have
announced
«

1

i_

m

their intention to continue the
''' ^-ba^rman reSular quarterly dividend of 55an?
^esld®nt.of NaT cenf^ per share:or $2;20 ^nually
of Westchester, at on the increased number of shares.
*

m

j

B£*lt
Bank

J*

White Plains, N. Y.,

.

announced

on

On.-completion of the

merger

1? the election by the direc- of July 16, national State
"OW fncludinc

^sidenf o^the tSSSffl
Nations" B^nk

of Trov

PresWent and

a

N

dhector

Y

as

o^ Na!
The

appointment becomes effective

t^kes

Lt

810

Broad

ington,

as

reports

A-x

v

—s

from

4

to

p.m.

6

p.m.,

Bates.A

^'one etch'Tn

ma-

msi

and from 7

to

in the real estate business m

was

or^ Aug^2^ccording to.'Atlanta, and in the latter

M

year

joined the Real Estate Division of
Trust Department.
»

»

*

An addition of £175 000 has been

As of June 22, the

Chicago, 111. bv

National: Bank of
a Sto«3c dividend of

First National
Bank & Trust Co. of Augusta, Ga.
increased its capital from $250,000

that

effective

to $350,000 by the sale of $100,000

lgan

Avenue

amount,t

June

29,

resuit oflwhich the capital is

as a

$075000

nnw

$700 000

romnared

Weviotisly

¥TDU,000 prev|.usiy,

-

of new stock.

with

;
•

•

iames

*

C

^
*

>

«

Wilson -Jr

of Pater-

James C.WiRon Jr.,^f Pato

..

Wayne Inyin, Vice-President

Orange
and the Millburn-Short Hills area.

business

of

^mAt

Pike will be chines. From 1947 until 1953 he

t^o hf lrv--and'

Street

Bank of Elberton for sev

in Bank of Elberton for several years
30. and for 17 years represented two

the bank's

va. .e

tional Bank of Westchester.

UNDERWRITERS TRUST COMPANY

417,000, with

ebpdition June

istic off"iceion°t|J

prising

bank's Union Square Office, 221
joined the Trust Company in 1932

?ar

Mr.

sXa'o/onnn^Tr^X
par

by

Fourth Avenue at 18th Street He

par

9:30

of

the

voted, -invoted,-in-

Company," and to increase

President

charge

$12.50

was

reported
$114,558,943 in

PublTc""shoWingl^7thV' modern:^manufacturers

RsTa^'Tork "from" iJSnnn® cfeajng tbe t°tal number of outconsisting of 9,000 shares, its

of

its

cons

ianiganr- irresiaent, tional

«

Mr.

announced

e

employed by the
Deadwyler vtas employ

thd bank
theT

resources

™tional Sta^e t0talstatement
reS0UrteS
of

meeUng of
stockholders, an increase of 25,000

bank's
He'was^reviouslj^manager o^the ^nge^tf^am^'to'theN"Nassan
sh?,es stock
?f J:be banl5's
ge..lts nam® .to the Nassau value
also
Cali, Columbia branch, and he has
foil

its 34th
34th year,
year>
its

total

thejG^en Cove Nassau at the

Sy!

amember of

t^staff ofthe

Comptroller of the Pullman Republic National Bank of Dallas,
Co., was elected a director of the Texas, ^were edected^ Assistant
Merchandise Nation
Ba k
.Cash
C^iairChicago on July 17 at a boar
^
Board
and Fred F.
^

on

Total

resources

of

the

combined

instituHnn,# it is announced, are meeting, it was armounced^^ by; Florence, President of the bank,
ia"
$290,000,00°.
The Kenneth K. Du .Vail, bank Presi- They were elected at the regular
Total resources
$4L26J3"484 $42,644444 dent- As Chairman of the Board, merger plan^. were referred to in dent- Upon graduation from Drake - June meeting of t e airec orsj
cSh8land"diTe^7™™ 37'655'544 38^66,6oo °f
Mr. Tyner will retain the position our May, 10 issue, page 2257.
University in 1929, Mr. Irwin rose the Republic National Bank. Mr.
chief
NEW YORK

June 30,'56

"

overrhi<!

become

thi

dpw

bank's

secohd*Presi-~*

"

banks
U. S. Govt,
&

Undivided

5,821,491

7,642,583

17,451,649

18 439 267

14,360,029
1,413,250

13,'907,'042

security

holdings
Loans

Dec. 30,'55

discounts
profits




policy officer of the

bank

under the Board of Directors
and

1,400,916

*n

.

its

v.

«

'

*

*

to

*

The Upper Darby National Bank

.

be Primarily responsible for
loaning, investing and financial

the

successive

positions

of

Comptroller, Secretary and Treas-

Wilson's father

is President

of a

bank in Perth Amboy, N. J., and

,

U/S. Gypsum Co.

He

of Upper Darby, Pa. has increased

urer

its capital as of June 29 to

joined Pullman in 1953. He is also
;

$1,025,-

of the

an

uncle, Stuart Wilson, is Presi-

dent

of

the

State

National

Bank

.

.

uiuuiv.

in

J.XJ*

i»uuiuci

vjuu^j

.

.

x nc

.

ou/iMitcitiui

Texarkana, Ark.; he has had 1V2
experience

years

National Bank of
and

4%

Bank

and Trust

J.

the

First

Charlotte, N. C.,

with

years

N.

son,

with

the

County

National
Iowa.

}!pnaSrt3ed
t0 the banks Trust
pa tment.
*

*

A stock dividend of
$115,000 has
in increasing the capital

resulted

?£• tbe

National

Bank

Wichita Falls, Texas from
$1,150,$1,265,000, effective June 20.
'

-

*

*

*

'

•

;San Diego's Mayor Dail cut the
ceremonial

Euclid

new

of

ribbon

The

and

First

to

-

National

the

open

Federal

branch

Trust

and

Savings Bank of San Diego, Calif.
on
July 2. The opening of this
new

First National Bank in southSan Diego makes a total

eastern

of

16

locations

now

serving

of

C-UrUfUC'ie

Des

Moines,

Wood, Reilly Appointed

1940 to

served

Our

San

Reporter

midwestern represent-

as a

*

Bank

of

*

America

Lebanon,

By Goodbody & Co.

By JOHN T. CHIPPENDALE, JR.

*

Aug,

has

"This

10.

reportedly turned out to be only

the

modern

mode.

signed to provide quick,

De-

conven-

ient, and efficient service, the installation features drive-in facilities and ample
parking for Cus-

tomers who prefer to do
banking

ip the lobby. A night depository,
located next to the drive-in win-

our subsidiary" said
Smith, Executive VicePresident in charge of international banking for the parent or-

ing because the money market was not ready for such a security.
Cash
borrowings by the Treasury will be coming along next

ganization at San Francisco. Other

broad

month.
The

branches of Bank of America (International)
are
at ? Dusseldorf,
Germany; Paris, France, and Sin- '
gapore. v - In all, the > California
bank's overseas organization indudes 16 countries. The Beirut

short-term

one,

Treasury

with

Government

in face

even

bills

Treasury.
made

will

There

of

market

increased

be

in

order

reports that quite

are

is

the

still

active

that the weekly

reports

to

raise

and

offerings of
cash

for

tjie

few switches are being
the market,-

a

in

the intermediate and longer-term sectors-of
some scattered investment
buying

being in evidence in the

-3s of 1995.

/'/.:•

v

-

...

Refunding Terms Anticipated

office will be located temporarily

Officer will be Robert H. Soules,with the bank since 1936 and most
recently /.Assistant Manager and
Operations Officer at the bank's

member who joined the bank two

r

sentative in Beirut since last fall,

wBl continue to make his heaa-

Quarters there.

in

is

Anderson

A

Calif,

with

of

the

Bank of

LOS

Calif.—Domi-

—nic
F. Nicastro is
250,000,
and
the First National
Bank of Oroville, Calif, with com- Logan & Co., 2115

Beverly Blvd.

of

$1,-

stock of $255,000 became ef¬
fective at the close of business on
June 15, under the charter of the
First National Bank of Oroville

with

now

of

and

under the title of the

Valley

National
office

mam

at

with
Oakland.
At

?C'ecJ*ve ^ate

the. Comptroller

the
the

E.

the

Currency

cisco

176,000 shares of common stock,
$10 each, surplus of $953,178,

profits,

$582,871.
*

-

TTpnrvir

*

.*

\

TfaTmnorrh

™

^

Kr
•?"
pointed Advertising and Publicity
Manager of the Union Bank &
Trust Co. of Los Angeles, Calif.,

staff of First California Company,
300 Montgomery Street, members

L* jL

Joins

Angeles

and

First

Western
western

Company
in

and

Trust
Trust

Francisco

new

Directors,
cciuia, stated
siaieu that
uiai the
me
xjii

bank

in

is

Orland,

Glenn

Countv,

Northern

opening

brings to 62 the number

of

—

»

Higgins,

&

300

Mont-

members of the
San Francisco Stock Exchange. He
gomery

was

Street,

and H

E

Work & Co

California

Californa.

communities

Its

served

Trust

said

that

Company.

Chester

W.

Mr.

Coats

Talley, for¬

merly Manager cf First Western's
office in Weed, has been selected
UWVVtVU

to manage the Orland office which

is

the

10th

branch

added

the

to

First Western system this year.
*

Edwin
The

E.

Bank

Francisco

that

*

*

Adams,
of

California,

announced

James

President

L.

joined the staff
President and

on

Sharp,
as

will

of

of

Assistant Vicebe attached

to

the Business Development section
of the bank.
Prior to joining The
Bank of

California, Mr. Sharp

serving

as

dent

with

Assistant
the

was

Vice-Presi-

Iowa-Des

Moines




materials bought in anticipation of the strike.

upon

further

in

ments in

reductions
loans.

bank

factor

market

A

with corresponding repay¬
This, however, is only a temporary money
in

inventories,

the

because

strike

steel

eventually and this will again create

will

have

to

be

settled

demand for bank credit.

a

Easy Money Market Anticipated
of the financial district that

in many quarters

market will stay on the easy side, at least until the

money

tion

as

financing is out of the way.

far

credit again,

/.

.

,

on

the firm side.

Form First La.

.V

NEW

ORLEANS,

;

V-IA,

S.

ert

(8pecial to The Financial Chronicle)
S

Street, Northeast.

with

Hopps,

Midsouth

engage

in

a

Chairman

of

of Active Investment Co.

U. S. TREASURY

STATE, MUNICIPAL
and

Securities

rier of San Francisco.

Exchange,
Brimberg,
will
form Brimberg & Co., a partnership, effective July 26.
Jack S.
Brimberg has been active as an

(Special to The Financial Chronicle)

Calif.—William
Shriley L. Bost-

LOS ANGELES,

H.

Dorsey

and

wick have joined the

Management

staff of FIF

Corporation.

asso¬

Security Building. Mr. Lopez

pany,

formerly with Akin-Lambert
Inc. and H. Hentz & Co. In
the past he conducted his own in¬
vestment business in Los Angeles.
■

'

v

■

Samuel B. Franklin Adds

AtTBHET G. LANBTOW

(Special to The Financial Chronicle)

LOS

ANGELES, Calif. —Bruce

Harold E. Jackson,
Richard
S.
Laquess, Lowell
B.
Lennon, Stanley M. Mathes, Mar¬
vin E. Milkes, Judson L. Mulkey

W.

Two With FIF Management

become

Co.,

Corp.

with A. H. Chev¬

have

Sheeks

was

ANGELES, Calif. —Angie
now

Calif.—John E.

Early, Mario S. Lopez and Walter
M.

the

(Special to The Financial Chronicle)

H.

individual floor broker.

Chronicle)

ciated with McCormick and Com¬

Officers are Rob¬

^

Stock

LONG BEACH,

secu¬

With A. H. Chevrier
LOS

Brimberg & Co.

_

(Special to The Financial

DETROIT, Mich.—Raymond H.
Markowicz is engaging in a secu¬
rities
business
from
offices
at
6564 Russell under the firm name

SECURITIES

(Special to The Financial Chronicle)

First

—

has

Board, and Henry L. Serpas, Jr.,
President.
Both
were
formerly

Anapol is

York

Forms Active In v. Co.

Three With McCormick Co.

Corp.

La.

Corporation

rities business.

Merritt

ATLANTA,
Ga. — Sterling' W.
***,
Holman, Roy M. Arnold and Joseph W. Gallagher, Jr., have become connected with King, Merritt
&
Co., Inc., 849 Peachtree

Robert

years.

-

^

been
formed with offices at 226 CaronLouisiana

delet Street to

iaCNk„w
New

Mr. Strauss

,

have improved and, unless they

Economic conditions appear to

under S. Dragomir and George E.

and

1.

PUBLIC REVENUE

Watson have become affiliated
with Sterling Securities Co., 714
South Spring Street. -

the

Aug.

with the firm for some

considera¬
The

probably result in the monetary authorities tightening

This would

ANGELES, Calif. —Alex."•—

To Form

on

the course of the money market is concerned.

as

-•— • — —...

Three With King

been

Also the length of the

post-steel strike period will most likely bring along higher wages
and higher prices which might touch off the inflation spiral again.

market

San

July 16
Jr., has

draw

changes,

members of the New
Stock
Ex¬

Midwest

and

continuation of the disagreement in the steel industry will result

adversely effected by a protracted steel strike, the balance
of the year should be favorable for business. This would create
further demands for bank credit, which should keep the money

by offices of First Western Bank
and

Salle Street,

has

which is causing users of steel

are

Sterling Sees.

Rothschild to Admit
CHICAGO, 111.—Leon F. Strauss
will be admitted to partnership
in Rothschild & Co., 135 South La

industries loans to the steel strike,

(Special to The Financial Chronicle)

LOS

1949, was

the AMVETS.

York

Previously with Wulff-Han& Cq.

Two With

Coats, Chairman of the bank's

±~>vai u
Board
of
kjx

Liquidation

brought with it the first signs of inventory

steel strike is another element which will be taken into

—

gen

statewide
system
his announcement T.

strike

steel

Government

opening of the 80th

In

increase in the

liquidation last week and this resulted in the repayment of bank
credit.- The commercial banks attributed the reduction in metal

the

Wilson, Johnson

SAN FRANCISCO, Cal.—Frank
Kihm
is
now
with
Wilson,

an¬

its

July 10.
P.

Bank

San

the

nounces

office

of

Fx-

(Special to The Financial Chronicle)

Johnson

Los

The

It is believed

O'Rourke

Inc.,

Steel Strike Brings Inventory

-

'

J.

New York public relations firm.

Stork

Brothers since

previously with The First Boston
Corporation.
A member of The
Toppers and the Municipal Bond
Club of New York, he was Chair¬
man
and
Editor of the "Daily
Bond Crier" for 1956. He attended
Fordham
University
and
New
> York
University and is a former
New York State Commander of

amount of Treasury bills in order to make the buying
selling of these Government securities in the open market a
effective monetary control measure.

Francisco Stock Ex-

cnange*

was an

.

TTVanriqm

Pine

Lehman

more

to

associate
wLiaic
ui
of
uuins
vr
Burns W.
Lee-Patrick
ljcc-rdUTLlv
a

and

was

(Special to The Financial Chronicle)

filling the vacancy created by Ed¬
win
F.
Wirsing's resignation to
join the staff of Edward S. Kel¬
logg Co. Prior to his appointment
by the bank Mr. Kavanagh

Fran-

He

SAN FRANCISCO, Cal.—George
W. Masters has been added to the

oan

Bond Club of New York, and
Valley Golf Club.
Reilly, who has been with
the municipal bond department of

pay

Inc./ 465 California
Exchange.

Joins First California

including

capital reserves, of not less than

Stock

previously with Reynolds & Co.

par

undivided

Co.,

consolidation Street, members of the San

of

reports, the consolidated bank had
a
capital stock of $1,760,000, in

and

&

the

Club,
Munici-

Lawyers

weekly

SAN FRANCISCO, Calif.—John
Suhr is now with Brush, Slo-

cumb

receipts from

the

an

of

member

Mr.

Offerings Expected

The Federal Reserve Board is known to favor

(Special to The Financial Chronicle)

a

Club,

Bond Club of New York,

the

July through December would be to
weekly offerings of Treasury bills. Presently, the
'Treasury is rolling over these short-term securities each week.

With Brush, Slocumb

Central

Bank,

light tax

increase

is

and

Bankers

Treasury officials were reluctant to discuss the
new cash borrowings which they expect to do next month, it was
indicated that one possible way of raising cash during the period

mon

Vice-President of Otis

a

Co.,

Ind.,

Although

J.

Inc.,

and President of Burr &
Co. He attended Franklin College,

&

better and they could afford to wait.

Increase in Bill

ANGELES,

stock

common

Co.

Treasury officials said they decided to reverse
procedure this year because the Government's cash position

(Special to The Financial Chronicle)

of the bond depart¬
Langley & Co. was

previously with Halsey, Stuart &

August maturities.
the

in charge

ment of W. C.

similar monetary situation but, in that instance, the Gov¬
the needed cash in July and then refunded the

a

part¬

Wood, who has been

Mr.
ner

market

apiount of the cash borrowing by the Treasury in August had not
decided upon yet. A year ago the Treasury was confronted

J. Logan Adds

Central

money

been

with

.

Oakland,

simple

a

yHowever, it was indicated by Treasury spokesmen that the

was

consclidation

as

ernment raised

Borthwick.

Valley National

officials

change, and James F. Reilly has
appointed Manager of the
firm's municipal bond department,
it is announced.

little effect on the economy either inflationary
deflationary.
This refunding operation by the Treasury came along earlier
than had been generally expected. It was explained
by Treasury
officials that they wanted to clear the decks for some cash bor¬
rowing which they expect to do next month.

years ago. Mr. Smith said Paul C. j:
Parker^ Bank of America repre-

President

Treasury

Reilly

oames 1" •

Woo^

of the New York Stock Ex¬

been

or

Japan, branch.
Also at
Beirut will be John C. Craig, former U. S. .Foreign Service staff

National's

by

A.

Frank

bers

operation, with

K°be,

Solf+1
Sa^
beLtb<:
oldest bank
the county.
First

described

was

dow, will provide 24-hour, seven
days a week service to depositors.
charter approved in 1883,

ap¬

maturity in this offer¬

be operated by

Russell G.

With

a

been

fairly successful operation,

a

The Treasury offering of a 12V2 month note, with a 2%%
in the Bistany Building, Rue Berate, to refund the maturing 2s of Aug. 15 and the 1V2S of Oct. 1
chara
el
Khoury.
Permanent
sion program.
was
in line with what the money market had been
expecting.
Reports, it is said, Quarters
are
planned.
Pieter
In other words, as the financial district put
indicate that the opening of the Huizer, former Shanghai . Branch
it, the offering was
branch set a new record for the Manager,
"on
the
market"
which
was
in
has
been
agreement with the Treasury
appointed •:
number of new accounts
Department's statement that the I2V2 month security with a 2%%
opened. Manager of the new branch. AsThe
building is constructed of sistant Manager and Operations^ coupon was "where the market is." The $12.9 billion refunding

in

has

Wood

A.

since it is indicated that the cash pay-off will be above
anticipated
limits. There was no lengthening of debt

Diego County and marks another
step in the bank's current expan-

brick

Frank

pointed Manager of the bond de¬
partment of Goodbody & Co., 115
Broadway, New York City, mem-

The refunding operation of the
Treasury is the dominating
force in the money market for the time
being. The large exchange
of 2%% notes due in I2V2 months for the
maturing 2s and JL%s,

(Interna-

tional), of San Francisco, whollyowned
subsidiary
of
Bank
of
America, will open a branch in

Beirut,

Governments

on

•

ative of that bank,

in new branch will be the fourth to

000 to
<

Kimtuiui

Bank,

From

been with Republic for nine
years.

>

r

1955, he was
with the Chemical Corn Exchange
Bank
of
New
York
where
he

Company, PaterMontgomery has

Mr.

Uftu

and

Hardman,

Walter

F.

Pika

have

joined

the staff of Samuel B. Franklin &

Company,

215

West

Seventh

St.

& Co.

,

.

INCORPORATED

IS BROAD

ST., NEW YORK S

WHitehall 3-1200
231 So. La Salle St.

45 Milk 9l

CHICAGO 4

BOSTON f

ST 2-9400

HA 6-646S

Financial Chronicle

The Commercial and
26

Thursday, July 19, 1956

...

(298)

question has been whether avail¬
able resources were adequate to
meet the demands upon them. If

Federal Reserve Policies
By 1953, however, with defense

order to maintain the de¬
sired amount of cash on hand.

expenditures at a peak, private
spending for both consumption
and
investment
was
again ex¬

over-simplified
discussion has been

rather

This

theoretical

presented because an understand¬
ing of these basic relations is es¬
sential for an appraisal of mone¬
tary policy.

'

Economic

Recent

Credit

and

Developments

during

Events

provided

have

years

five

past

the

panding. The economy generally
was
operating on
an
overtime
basis, which was being supported
by substantial credit expansion.
Strains developed
in the credit
markets as growing demands for
credit pressed against the avail¬
able supply of savings and
the
limitations on bank credit growth.
Curtailment of defense expen¬

significant

in this and other countries,
of: the use of monetary policies to
tests,

mid-1953,

beginning- in

ditures

some
slackening
in
consumer
promote stable economic expan-; durable goods buying on credit,
and a
related inventory adjust¬
sion. During the 1930s banks in

had more reserves ment brought a moderate reces¬
they were able to put to use,:* sion in activity" until mid-1954.
This was followed by a recovery
and Federal Reserve policies were
of relatively little consequence. In to a level at or close to capacity
country

this

titan

the 1940s, monetary

restraint was

later

and

finance

to

of

out

supporting

reductions in new
from these sources
meet

to

possible

it

make

in

pansion

however, have
continued strong particularly from
business borrowers both at longinstalment

creasing

at

last

than

Banks

to

and

grow

by member banks.

ex¬

against automobiles have
somewhat, although not
as
automobile
sales,

by the extension of Federal Re¬
extended

credit

is

Federal Reserve

cise little restraint on credit crea¬

tion

or

inflation. The system was

appropriately called a veri¬
inflation."

then

in

avoidance

the

and

the

of

decrease

a

supply. The easier
availability provided sup¬
money

credit

retired

has

large. The Federal
the other hand,

very

on

first half

the

in

debt

its
seasonal borrowing needs in the
last half will be much smaller
calendar

this

of

than

in

calendar

since 1950. The
a
whole will

year

any

year

and

year

as

probably show a net decrease in
debt

national

the

first

the

for

table "engine of

port for mortgage lending and for

time

Treasury-Federal Re¬
serve accord
in early 1951, Fed¬
eral Reserve policies have been
free to adjust to
changing eco¬

utility and State and municipal
financing and there was also an
early resumption of growth
in
consumer spending. In addition to
easier
credit, tax reductions in
1954 helped to stimulate both con¬

heavy demands for private capital

Since the

nomic conditions. They have been
times

to

restrain

infla¬

1948.

since

In

expansion, such
is

needs

at

During

Economic

developments

in

the

United States during recent years

present
causes

record

a

events,

of

and consequences, that may

considered

fee
The

of

as

performance

epoch-making.
of

the

United

States economy has been magnifi¬
terms of growth, resource

cent in

utilization, and

avoidance
portant setbacks.
;

From

mid-1950

economic

ably

trends

of im¬

mid-1954,

were

consider¬

influenced by the course of
security expenditures by

Federal

Government.

In

the

occurred

in

this

in

of

*

possible effects of the de¬
program.
This wave was
brought under control or subsided
as

defense

spending

expanded,

and the economy as a whole main¬
tained
a
fairly
well
balanced

position during most of 1951 and




economic

scene

has

The

been

tional

and

Federal

able

debt.

to

Government
the

reduce

the

At

has been

business

goods

an

time

same

in

acceleration

for

expenditures

equipment.

na¬

plant

shift,

This

to¬

gether with the continued borrow¬

ing

demands

of

Governments

in

resulted

and

in

of credit

demands

terial

State
a

and

their

agencies,
in the

needs, as well

unon

labor

and

as

ma¬

Another

highly

significant, as¬
pect of the
economic
situation,
evident by last fall, was that with
the economy operating at close to
capacity,
the
potentialities
for
further
expansion
were
much
more limited than
they had been
,

earlier. As evidence mounted that
business

plans
penditures this

for
year

capital
were

ex¬

very

periods when there was

ebb

seasonal

The

flow

and

of

be taken

must also

needs

reserve

Changes in the

into consideration.
volume of currency

in circulation,

regularly necessitate
withdrawals from and redeposits

for example,

in

member

of

course

balances

bank reserve

billion dollars in the

of nearly a

To avoid

few months.

a

such wide

changes in reserves, the
Federal Reserve must supply or
absorb most of these variations.
normal

The

demand

variation

seasonal

in

deposits at member banks

of $5 billion,
causing changes of over threequarters of a billion in required
cover

may

in

reserves

range

a

the

of

course

The

week-to-week

day

variations

a

and

year.

day-to-

Treasury and
nonmember deposits at the

other

in

met

dangers

credit expansion of
able

nature

without

in the money

strain

The

kets.

be

requirements,

seem

excessive

of

|

now than

they have been during most of the
past year.
of Monetary Policy

the prin¬

cipal features of recent economic

providesa

developments
more

detailed

setting

examination of

the nature and purposes of mone¬

tary

policy.

balance
omy

and

requires

The

the

for

lems

banks

for

and

the

Federal Reserve. To avoid disturb¬

repercussions

ing

the

on

money

or

absorbed

to

dollars

which

hundreds
in

a

can

millions

of

relatively

short

ture.

Such

many

aspects

the

which

are

through

•

structure

a

quantity

the

econ¬

other

or

the

which

includes

than

the cost of

merely

Most of the
ments

quantitative adjust¬

effected

reserves

by

authorities

market.

affected.

principal channels
monetary

policy

there is

directly
.

Federal

not

not with
Secondly,

Reserve.

rigid formula to indi¬

no

precise amount of

cate what is the

be appropriate at
Existing money may be
more
or
less actively, i.e.,
that

money

may

time.

any

used

the

in

variations

turnover

of

which may be consider-*
able, are also significant from the
standpoint of economic activity.

money,

that: determine

influences

The

turnover of money

numerous,

are

subtle, and difficult or impossible
to measure or to control. They in¬
the

many

social, economic,

political forces that motivate
monetary actions.
These forces
are
of
concern,
nevertheless, to
and credit authorities and

money

those that relate to credit may be

influenced by policies of
eral

the Fed¬

the Treasury, the
supervisory authorities, and
various lending institutions.
Reserve,

bank
the

Credit.

of

Cost

the quantity of

In

addition

Reserve also exercises an
on

est

credit, i.e.,

the cost of

to

credit, the Federal
influence
on

inter¬

There has always been

rates.

tivity.

accom¬

or

individual

indirectly

to the influence of changes
on economic ac¬

ory as

interest rates

It is generally agreed that

they do have some influence; the
view are related to

differences of
how

and

in

Reserve,

obtain

Experience

much.

definitely that the be¬
havior of interest rates cannot be
detached from that of

availability

on

however,

maintain

an

rigid control over the

Any member

reserves.
a

how

has shown

of

quantity of

For

credit.

ex¬

-

attempt to

supply of
-can

whether

.to

as

to, use rest with

borrowers,

Federal

the

Federal

Net Free Reserves

bank

and

lenders

ample,

does

decisions

ultimate

the

of

positions
are

The

overem¬

First,

such credit is put

are

Through this channel the

reserve

-

avoid

to

although it is the
aim of monetary policy to assure
the
availability of an adequate
supply of credit and money for
sustainable economic growth, the

in

plished through open market op¬
erations
principally
purchases
and sales of Treasury bills in the

banks

needed

is

of bank

in the availability

arbitrarily
money,

In consider¬

much discussion in monetary the¬

period.

sound credit struc¬

a

always
market

Used Credit

Initiate

Velocity of Money.

response

needs,

reserve

amount

of

in

maintenance of

growth in

not
open

Only Lenders and Borrowers Can

and

—

This brief summary of

is

operations.

clude

Reserve

The Nature

it

which

and

feasible to offset by

float, while having little
long-run effects, can cause purely
temporary periods of stringency
and ease in the money markets.
These create daily operating prob¬
serve

unsustain¬

an

less

in¬

mar¬

it

Reserve Banks and in Federal Re¬

in

could

figure, because of the wide
temporary
variations in
of the factors that may affect

phasis.

sonal

creased

this

tion

Reserve Needs

within the limits of moderate sea¬

growth

Warning,

policy.

should
be
expressed
against reading too much signifi¬
cance in week-to-week changes in

objective of monetary policy, cau¬

to these
rather wide short-term variations

and

the

ing the quantity of money as an

slack in the economy.

some

market, reserves must be supplied

for

resources.

other

in

thus

or more

If

local

change

considerable

of

credit demands should remain

which

durable

high level of activity

a

1950,

Short Run Ebb and Flow of

for the remainder of this year.

lation.

nature

fense

the

in

periods

some

V'."'

balance, there is reason to
hope that the economy will be
able to maintain a state of equi¬
librium at

since

3%

over

activity but rising to 6%

Spectacularly heavy credit de¬

and for
housing have levelled out, as has
also the rate of inventory accumu¬

expenditures increased much,

the

course of the past
significant shift has

country. Expenditures for

consumer

has

was
a
wave of
overbuying,
overborrowing, and over-pricing
on the part of the private econ¬
omy
in exaggerated anticipation

a

of

growth

with the rate being as little as 1 %

On

Currents

straight line.' Demand de¬

posits at banks, for example, have
shown an average annual rate of

reserves

is

It

single index of cur¬

monetary

some

a

them.

however,

low

stabilizing influ¬

ence./vv-

so,

latter half of 1950, before defense
there

the

few months

there

until

national
the

Cross

rent

These

reserves.

unborrowed

to

best available

grojwth in the

purely

—

Strong

1 bank

of

of

available

needs, however, by no means fol¬

ment.

Developments

being supplied by banks and the

increase of well over a billion dol¬

lars

indicate, therefore, the rela¬

volume

allowance

consequently
in
This allowance

is large, money :
likely to be tight, v
V'

reserves

are

tion between the volume of credit

amount to a yearly average

may

sumer

Epoch-Working Economic

for

made

be

must

mands that developed
in March
buying and business invest¬
£nd April •— C particularly upon
By late 1955, resumed eco¬
'banks—raisdd a serious question
nomic expansion and accelerated .
to
provide a credit stimulus to eco¬
whetjher these hopes of
credit
demands
again
pressed moderation '"were
nomic recovery. At all times the;
being fulfilled.
upon
the
limits
of
productive Banks have been under pressure
major
objective
of
policy,
it
capacity and the supply of sav¬ from would-be borrowers to in¬
should be recognized, has been to
available
for
investment. crease their
foster
orderly
and
sustainable ings
loans, while their
Credit restraints were exerted to
economic growth, while maintain¬
liquidity
positions
and
lending
help keep monetary growth within resources
have
been
limited.
ing the operation of free competi-*
reasonable bounds. *
tive markets. Prices of securities
Probably never before have the
Expansion in the United States banks of this
country made more
and, interest rates have been per¬
during
the
past
two
years
was
mitted to fluctuate and to perform
loans and at the same time re¬
preceded and accompanied by a
their normal economic functions
fused
more.
The
expansion in
sustained upsurge in activity in
of keeping saving and. investment,,
bank credit in March and April
Western
Europe
and
in
many
was so great that the money sup¬
and
borrowing and lending, in
other countries. Output and con¬
balance and within limits consis—
ply—after adjustment for seasonal
tent with the productive capacity sumption in these countries have
variations
showed an annual
risen
to
new
high
levels
and
rate
of
increase
of
about
of
the
economy.
Under
these
8%,
stringent restraints have had to be which
if
continued
would
be
policies there has at no time been
imposed on the use of credit to
a contraction in the total volume
highly inflationary. The trend in
of bank credit, but a gradual ex¬ keep consumption and investment previous
months, however, was
within
the
limits of
productive moderate and in
May there was a
pansion at varying rates consis¬
capacity and thus to avoid domes¬
tent with the needs of sustainable
greater than seasonal decline that
tic
inflation
and
a
serious
im¬
largely offset the March and April
growth in the economy.
balance in international payments.
increase.

used

tionary developments, at times to
cushion
recession
and
thus
to

standpoint,

long-run

budget surplus

a

beneficial

a

period

a

constantly alert to the varying
of the economy.
From a

be

reserves

^Variations in this series of fig¬

ures

the Federal Reserve must

and

Government,

v

excess

over

excess

and

borrowed

of

policy.

needs.

po¬

matter

a

markets

regulating the supply of re¬

In

monetary

tentially

given time
held by

any

borrowings smali, >
situation is relatively
but when the amount of net i'

easy,

The amount of such

credit.

serve

economy

and

actually

When

large

much

mands continue

The

repre¬

reserves

borrowings

reserves.

money

while

support

of

excess

Ac¬

the

policy resulted in excesses which could cause real
pegging interest rates and per-; trouble once a downturn came
mitted
what
has
been
called; and might bring on a downturn.
"monetization of the public debt" During the slack from May, 1953
until the late months of 1954, the
almost without limit at the initia¬
tive of the holders of government major contribution was to facili¬
securities.
Under
such
policies, tate as large a volume of bank
as the economy required
the Federal Reserve could exer¬ lending
bond

excess

are

serves,

of

margin at

between

is, reserves are supplied to banks

extensions
against other
During this period of changing durable goods and personal loans
government securities that were
outstanding. Other measures of * economic climates, Federal Re-> have continued at a high level.
control were relied upon to re¬ serve policy was aimed at supply¬ Mortgage credit growth is also at
strain inflation, with not particu¬
ing adequate credit for growth but a slower pace than last year. State
larly
satisfactory
success.
The at the same time avoiding credit and local Government credit de¬
prices of the vast volume

the

the

figures of

reserves"

free

"net

tually, the reverse is the case, that

much slower rate
as
repayments

a

of

reserves."

borrowed

sents the

funds deposited

reserve

use

with them

year,

continued

have

Consumer
been in¬

short-term.
credit has

and

term

of

It is often member banks as a group and the
probably more often total amount of member bank bor¬
thought, that in the purchase of rowing at the Federal Reserve
government securities or the mak¬ Banks. The term, "net borrowed
ing
of
advances,
the
Reserve reserves," is used to indicate an

and credit.

resources

series

called "net free reserves'*

are

term

country's gold stock
advanced

the

is

and

said,

demands,

Credit

indicator

significant

"net

or

de¬

reserves

v

by the Federal Reserve.

business capital needs within
limits of feasible further ex¬

as

Excesses

bank

exercise restraint.

to

degree of restraint or ease in bank
what

and the amount of credit

would

most

ing system to create money by the
extension of credit.
In the final

analysis, most

get" out

For these reasons, probably the

determine the ability of the bank¬

and

building,

home

to

serves

credit

rive from the

declined

Credit Supplied Without Any

evident

been

with consequent

the

straint

As in¬
mechanism
through which the Federal Re¬
serve operates is the regulation of
the supply of bank reserves, which

credit demand

the

banks are, or

the principal

dicated,

Government surplus,

Federal

the

needs, and borrowing
should be, under re¬
of debt.
The
discount facility thus provides a
cushion of flexibility, but its use
temporary

in the credit area.

lems

at

supposed to be used only to meet

prob¬

nature of current and future

with little overall

in the economy,

tensions

by the latter part of 1955.

subordinated first to needs of war

will

Reserve Bank. By
practice, however,
Reserve Banks is

a

and

borrowing

authorities, to bank¬
and to the country in general
give a fuller picture of the

ers,

expansion.
Early
this
year
it
seemed likely that a lower level
of automobile purchases, a level¬
ling

tradition

concern1 to

of

are

the directly from

credit

the

Quantity of Bank Credit.

have

currents

of

survey

of

the monetary

months now, strong

For several

that

structure

prices.

rising

cross

A

aspects

large

a

output but

result not in expanded

other spend¬

ing in

of

brief

operate.
various

credit would

volume of additional

in

investment or

provision

the

not,

Reflect Economic Trend s
from

important

the

enlarged,

further

being

continuously

and

large

3

Continued from page

sound

credit

-reserves

position

by borrowing

in

attempts to peg the rates

Treasury
which

bonds in

a

situation

lending institutions had

large amounts of these bonds and
were

faced

with

other

more

re¬

munerative credit demands, meant

giving up effective limitation on

Volume 184

Number 5552... The Commercial and Financial Chronicle
■■

-

'

•

quantity of credit that could

be created.

..

.

.

■

■

,

in any important particular sector

large extent

expands

borrowers

rapidly than*can be

more

sustained,

then

there

is

risk

of
Keeping Interest Rate Below
subsequent contraction. Examples
Equilibrium Worked
0f over-extension of
credit, folInterest rates reflect the rela- lowed by contraction or slackentionship
between
demands
for ing,
are
found
in
the
case
of
^

.

T

,

.

,

_

_

t

,

credit

the

and

available

(299)

■

■■■.

the

the decisions of

omy

lenders.

These

at

by.

have

upon

and

decisions

influenced

are

a

number of aspects of credit other

liquidity. These aspects are
largely determined by the deci-

ferences between interest rates in
the various sectors of the credit

tion in expansion and of sustainability provides one of the prin-

Ultimate tests of the effectiveness
of monetary policy and the sound-

structure

cipal

ness

to

serve

influence

automobile

the

instalment credit last

The importance of modera-

year.

arguments

for

selective

sions

of

and

savers

ties
of

investors, of

the

general

If

such

maintained

tion

bv

the result

economic

cies

^attempts

is

ac-

ofgeneral

'

Liauiditv

mone-

of

An examDle is found

to

thfs Tountry
country,

in
in

auempxs

rigiditv

most

hanks

One

tny

to

the

ResSve authorities
autnoriues,

and
ana

tnis

of Credit

credU^ that ifof

tteseive

asDect

concern

1 Fpdoral

and
and

also
also

to
to

ticularly in Scandinavian coun- the Treasury in its
debt-managetries, to maintain interest rates on ment operations is the
liquidity of

Sf,^&^below

librium market rates.

like

quality,

is

subject

to

a

so^dleerfnfl^nce'onThe'cosl
of

credit

through

discount rate
ber banks.
at

the

as

a

in

Reserve

Banks

is

not

be

much

kquidity
th<: economy

of

line with short-term open market

rates.

money

is

above

banks

a

If the discount rate

rates, member
prefer to make their

will

reserve

adjustments

sometimes

determined

by

as a whole

but it

is

+upG1npifX1r!!2n^'hnn^nrWs

demonstra?efg thgat

in

j^eserve

make

can

the
any

Federal

particular

TjutTnYy ft aT& of
co^t^V^be^fma^rat^
sacrifi<;ing
ma>OT ob'ectives" T,
banks
money

member

clined

will

to

,borrow

be

to

in-

more

obtain

,

level of the discount rates.
it

bp

can

that under

seen

Bank

re-

this ^ .wRl ^increase The
availability of reserves and tend
to bring market rates down to the
serves;

Thus

our

svs

v
i

.

"

Liquidity Without DependUpon Federal Reserve

ence

;

„

,

For

banks,
banks, and
and also
also for
for others
others

,

^enQingth°
^ions,

the

liquidity

,

,

.

,

,,

major
purpose
of
to be able to obtain

is

tem, the cost of Federal Reserve

aasb

credit and the

tfuoSU of Lis country^S
tCuSalfds of local unR banks and

availability of reclosely related that

so

S F ! to maintain

w,itbout dependence on the

sub-

f
r
any
without widespread branch bankstantial
Distinction between
them..

*■>

Quality of Credits Bankers

concerned

only '

of credit

amount

est

-not

and

with
with

pre

the

inter-

rates, but also'with the quality
The term "quality", can

of credit.
cover

to

broad

a

and is difficult
nreciselv : but
essen-

define

area

ing> there is great need for a high
degree of liquidity to meet shifts
of funds among banks. If the
Federal Reserve extended credit

to- every
porarily

banks> the total volume of bank
in the economy would be

reserves

throlfgh6 the6 exercis^ of^ supervisory and discount functions, but
influence

is

limited.

Gener-

are

liquid assets to rise closer
rates.

Must
r,

Control, Or Lenders

Impose

High Quality

nevertheless,

terest-bearing liquid assets. That
shift, which occurred in the case

...

Quahty of credit,

...

ra

k

tary
in

pohcies.

the

credit

quality

poor

If

difficulties

structure

of

arise

because of

existing

credits,

and banks tben adopt more severe

standards, the supplying of additional

reserves

response.

loans

.,e,

on

Th

i

meet

may

no

This
happened
with
securities, with real es-

loan£> and

early

secondary consequence
of this development is a tendency
for
business
corporations
and

concern to the
}).ecaiiBe lt can m"
effectiveness of mone-

,

fluence the

to other

A

other large holders of deposits to
shift funds from deposits into in-

...

to

some

extent

Q?n tyP^
°f Credlt
in the
These
experiences

1930s.

indicate the need for the maintenance of high standards of credit

0f brokers' loans in the 1920s and
in the case of
Treasury bills and

finance

company

monthSj

is

one

paper

0f

accelerate

the

the

in

recent

influences

turnover

of

money
without
an
increase
in
volume. The subject of liquidity is
one
that needs
further thought
and

stUdy.

should

be

Banks
careful

in
to

particular
maintain

a

the

concept of quality,
is the sustainability of an
appropriate rate of increase in the volume

of

credit.

expanded,

new

be

to

added

credit is

When

buying

the

credit

is

power may

the

creation

If

the

of

lhrge

?

the

that

suggest

economv

year the eeon-

inflationary

growth

gold

purposes.

Conclusion

regulating

by

No

our

of
or

ume
ume

$6,968,000,000

Since

p5 ?PPon^7

imately
Gf

■

32%

our

$21,-

7i6,000,000

of

lest

.

was

When,

yT

stock

°^"er6klP'
origin,

Facts

gold

trends
ana

causes

this

Dr. Walter E.

heavy

said

of

Executive Vice-

president of the Economists'

Committee

on

gold

Published
as

to

our

by

ac-

wX

gold

t0 obtain

earmark

$2,750,000,000

for

foreign

not

«

to

earmarked
ln"eased
cdiiiwineu

^

_

dente(J
A

$6',968',ooo,000.
'
'
'

Better Informed
-

Congress and

Public

0f

Regarding the ownership, trend
earmarking, origin, and causes
heavy earmarking, the Re-

0f this
serve

authorities

keep

rfiv*

_

•

_

»

our

" (Special to the financial chronicle)

BEVERLY HILLS, Calif.—Robert

A.

Berliner

and

Lee

Co., 445 North Roxhury Drive.
Boren Adds

to

Staff

(Special to The Financial Chronicl*)

By Federal Reserve Banks for Foreign Account

(000

BEVERLY
Violet

Q.

HILLS,

Marsh has

1928

40,567
100,058
99,958

1S29—

112,250
1930— 122,733
208,783
1932

Santa

$197,725

4,177,966
4,166,583
3,744,517
3,813,850

9,775

51,000

167,758
420,158

1938—

1939—

964,233

1940——

1,518,966
1,979,700

2,506,775

275,475

o

1948-.,

1949^

of

Boren

&

,

.

^

3,918,133
4,875,775
5,813,200
4,928,067
6,118,492

1953

3,114,658

Two With

Sterling Sees

(Special to The Financial Chronicle)

LOS

ANGELES,

Calif. —John

Neji Jensen and Mike D. O'Harra
have joined the staff of

sterling

Securities

Co., 714

South

Joins J. B. Hanauer Co.
(Special to The Financial Chronicle)

Average for three months, October-December,
b Average for January-March and
July-December,
a

BEVERLY

(000

Mar

31-— $6,527.0
28
6,537.0
31 _I
6,539.0

Calif.—Gil¬

Beverly Drive.

omitted)

1955

HILLS,

bert L. Da vies has joined the staff
of J. B. Hanauer &
Co., 140 South

(Monthly Data, 1954-April 30, 1956)
1956

Jan.

31

$6,818.6

Jan.

31

Feb.

28

6,819.4

Feb.

29

Mar.

31

31

$6,949.5
6,965.2 '
6,968.0

6,847.1

Mar.

Apr.' SoIIi:

6,501.5

Apr.

30

6,889.0

Apr. 30

6,951.1

May 31

6,549.8

May

31—

6,890.0

June 30

6,566.7

June 30

6,890.9

July 31

6,639.4

6,891.0

Aver. 4

6,958.45

With Harris, Upham
(Special to The Financial Chronicle)

BEVERLY

HILLS, Calif.—Bar¬
Angell is now affiliated

bara

B.

with

Harris,

Upham &

6,704.8

6,739.4

Sept. 30——

6,883.3

varying

Oct.

31

6,774.0

Oct.

31

6,890.4

Nov

oq

6,810.7

Nov.

30

6,917.5

Dec* J1

6,808.9

Dec.

31_

6,941.3

with

6,641.51

Aver, for yr.

6,881.03

Santa Monica Boulevard.

reserves.

When

tion
has

is
a

This

not

high

method

precise

degree

of

regula-

or.rigid,
of

but

elasticity,
and the final result depends to a

'

Aver, for

yr.

6,893.9

Co., 9860

Wilshire Boulevard.

Aug. 31

sustained

Spring

street.

Sept. 30

of

added

Co., 9640

Monica Boulevard.

eco-

interests

Calif.—

been

$3,725,392

i

13,658

27,517

1927_____

to the staff

omitted)

1934—

Lewis

have joined the staff of Bache &

'

1933—

•

Pro"
^.UdW. on. our earmarking
earmarking of
ot
g° d„ j°fQo?rflg? apiCon ini?
period 1922 to April 30, 1956.
on

principally through
the availability of bank

the

in

•

.71-£0 ,aaf mpanying tab^e.
vides data

nomic growth

credit

Congress

inter6Sted PUbUC *

picture of the trend of

(Data Compiled From the Monthly Federal Reserve Bulletins)
(Yearly Averages of Monthly Data, 1922-1953)

$2,300a
2,256b
16,567

of

$21,716,000,000,
"vohinir nf" «nM"'

the

Gold Held Under Earmark

1922——

stood

volume

was

July 31
Aug. 31

and

money

monthly

stock

the volume of 5uiu
gold
l°r

ownership

published by the
authorities. In addition,

a

the

gold

Federal

Monetary

Policy.

for

Whh Bache
the

earmarked

are

Reserve

Na-

earmark

1949,
our

under

"foreign

v vx vimc

■

increased

facts

account

gold

$3,918,133,000. When, on March 31,
1956,
our
gold stock had declined by

$28,684,000,000.

Not

The

earmarking,

Walter E. Spahr,

on

ftc

Spahr

oi

in
of

then

foreign

had the

ami.

have

to

under

$24,466,000,000, the

'

this large volume of
gold, preferred dollars
q 1
1Q«
March 31,
1956, they

™

gold

could

"nI

raduei

of

yv i-ivx o
owners

earmarked
to

of

to

sTck. Th'^efore,

/anu

1953

increase in the amount of

placed

average
at

of

Gold earmarked for

.

volume

of

foreign account. The peak, dur¬
ing this period, was
$6,968,000,000
on March
31, 1956.

a

earmarked

an

gold

approximately 11 %
of our $4,160,000,000 of
gold stock,
hot counting that in circulation.

n

p

^p^lnthnri"
^-Xhtpn

pu_^;*c

volume

amounted

beginning

$6,118,492,000. In every month,
except four, from
January, 1954,
to
April, 1956, inclusive, there

gold before
suspension of redemption in 1933,
was
$463,931,000 in October, 1931.
The

gold stock>. "

*

the

In 1953, the
average rose

to

non-gold dollar/The
dollar. The heavheav-

earmarking

the
in

crease

067,000.

Compliment to Our Dollar

our

Earmarked

under earmark.
In
1952,
the monthly
average was $4,928,-

heavy earmarking of gold,
ie harHlv
rnmnliment
53-1956, is
hardly a compliment

to

„

placed

The

March

on

.

in

,

Compliment to Dollar

earmarked

-

,

^ers,stent Increase

without

,

With

reveal the causes

me

Persist-t TnrrM8A

adiust-

calling attention to record volume of earmarked gold for
foreign accounts, nationally known Economist finds it to be
"hardly a compliment to our non-gold dollar." Claims our gold
stock could increase to
$28,684,000,000 if foreign owners
preferred dollars to gold, as of end of March. Suggests Federal
Reserve publish better statistical
intelligence for Congress and
the interested public.

Federal Reserve banks for foreign
accounts reaching a record
1
VOivol-

'

Reserve au-

+

caf, arisa from conversion into
gold
dollars held by foreign
central banks and governments—
tbat,1S> oy drawing down our gold
stock—0r from exports of gold
by the™ to our Reserve banks for
earmark: rather than for exchange

pressures.

1923456— 19432765 19420765
No

of

volu/ne 01 gold Held under earIncreases in the volume

ments in the Process beinS made
economic

picture

a

earmarking

marK-

economy suggest tnat aajust

tinued

the

mann|r ol origin of,
^rre?s<;
decrease in the

new

capital

In

Feb.

power




credit

Record Volume of Earmarked Gold Found

Jan.

economy.

or

The attainment

others exDand

working

contracted, buying

is reduced. If credit in
general

from

To obtain

in

hJT

uses—consumption, housing
and business inventory
growth—
can
show only moderate further
increases this year. Correspond*

invSv^adjustments ^owmvarilTn
ssssrassm

1954

cn the part of lenders.
what j have attempted to brlng
Sustainability of Credit. Another out is that the
Federal Reserve
aspect of credit, sometimes in- exercises
its
responsibility
for

in

than
bank

a

fllrth#ar

must

chiefly from savings rather

other

-faia.TP™

8

degree of liquidity appropriate for

quality

eluded

avoided,

purpose

come

in

the volume of

it is necessary to go to everv
"Bulletin" for the period involved
and to compile a table

investment
be

contains

on

gold

v,

Banks tend gradually to red«ce their holdings of
liquid
an appropriate
quantity; decisions assets when other demands for
as
to the nature and
quality of credit are strong. This has the
credit
provided
are
made
by effect of causing interest rates on
Selective

JJ-

«onai
reserves of liquid assets
needed for thls Purpose. ,

ally, Federal Reserve policy is
directed toward making available

lenders.

private enternrise

individual bank tera^T^Dngress
losing; cash to
other:

tlally it relates to the ability of expanded
_bey o nd appropriate
the borrower to fulfill his con- amounts The other holders in trytract particularly under less fav- in£ to flnd uses for their funds
orable conditions than Those as- ^ould stimulate new demands. It
sumed in borrowing. The Federal is
Preferable for banks, to tap
Reserve authorities can have some sources of funds already avail-

this

this

trend

a

caPacity> and the avoidance of
power ingly the uses ot credit for these
of money> whlle continuing to purposes must be kept within for dollars.
°Perate under a system of free limits- Current developments in

said

sourcJ .tb?t can be reLed
any individual bank and

uRpn

market

temporary

is

is

Fe<Jeral Reserve operations. This
Js true in an .Ultimate sense for

serve

out

loss. Ita

no

cushion, the discount

should

of

v^rt assets into cash with little

its

mem-

to

for

item

eign account.

productivity
existing labor and machines. It

funds

Each Federal

"Bulletin"
one

gold held under earmark for for

depreciation in the buying

D""ng the past

If, however, borrowing

flexible

rate

changes

advances to

on

Reserve

expansion plans reported by businesses
are
to be carried
out, it
follows logically that the
portion
of national product that
goes into

regulation. The initial responsi- cies in general are the full utilizabiiity for keeping growth within tion of our resources in materials
sustainable limits rests in the cau- men, and machinery, the maintion of lenders.
tenance of growth in productive

be to impair

may

the effectiveness
tarv noli

rate

governmental

these gold holdings
footnote

on

increases in

require capital
but, if inflation is to

regulation of particular types of situation are found in measures
one
set of
rates at an arbitrary credit that
are subject to wide of production, distribution of inlevel, without regard to variations variation and are not susceptible come, and price trends. The hope
in other rates may interfere with to control
by general monetary and objectives of economic poli-

affected

and

the

allocation of funds. Attempts to fix

this important allocative function
and repel funds from the areas

pressures

will

lenders and borrowers.

of

upward

prices.
Possibility of
further growth in output
depends
on expansion of productive facili-

and

brokers' loans in the 1920s and of

been

industrial

than quantity and cost, particularly velocity, quality, sustainability,

supply,
They help to bring demand and
supply into equilibrium. Also, dif-

generally has been operating
to
capacity and there

close

27

mos.

1

Shelley, Roberts Adds
(Special to The Financial Chronicle)

BEVERLY HILLS,

ley

Calif .—Stan¬

J. Gould is now affiliated
Shelley, Roberts & Co., 9480

The Commercial and Financial Chronicle...

28

that

notion

Continued from first page

own

>

intentions.. V\:v/

■

Conceivably all this, or at least the larger part of it
could have been avoided with shrewder management of
our
international relations. Certainly there have been

day dreaming and just plain bungling in our
dealing with other nations. The fact is, in any event, that
we have been faced with very real difficulties ever since
World War II to say nothing of the situation during that
dreadful conflict. Some of our problems have their roots
in much earlier policies. Our expansion in the Pacific,
first to Hawaii and then to the Philippines not unnaturally
left much of the Asiatic world dubious about our inten¬
tions and our motives. World War 1 had left some other
obtuseness,

peoples wondering about us and the real motives that led
us to enter that conflict. We won no friends in Asia by
our attitude toward Chinese and Japanese immigration.
came

Pearl

Harbor and

the other thrusts of

their

own

conceivable—given
the powers that be in
in fear of us.

ends. It

is

even

type of mind—that

land really are

that strange

standing in large sections of the globe has not
been helped by the fact that our chief associates and
allies at the present time, and, for that matter during
World War I, are among the leading imperialists, histor¬
Our

*

ically speaking, of the world. Of course, Russia itself was
likewise imperialist par excellence—and still is for that
matter—but in the eyes of many has become a different
sort of nation now. At least that is what the Kremlin is
busy telling the anti-colonials throughout the world. But,
however that may be, we are working closely \yith such
countries as Britain and France and that is enough in the

and must

come

come

largely

as a

that

ing

result of their

an

"agonizing reappraisal" of

dred

only

pigments, trace elements for agri-

must

cultural

grade that
company's

and

for intermetallic

base

as

a

compounds

in ultra high temperatures,

use

because

tion

which

respect

to

of

the

posi-

unique

Climax

enjoys with
the known U. S. and

^supply

available

use

and

of

ores

a

of the
established cut-off grade. Under this
Government contract (which has
been effective for something over
two years, and which runs to
is below that
commercially

be derived
relative to that company's future
growth are highly favorable.

of 13 million tons of ore that
under previous practice would
have been discarded
and will

for

Jl,ave received for it $60 million.

About

may

of

95%

the

steel.

for

demand

In

the

in

S.

U.

year; but the apdomestic consumption of
in
1955 was
23%
greater than in 1953. In the rest

parent

molybdenum

world, steel ingot pro-

in

duction

reached

1955

level—about 20%

above

with
of

Another contract with the Govwas made in late
1950.
Under it the company undertook

record

a

denum

consumption of molyb'in the balance of the free

world

was

apparent

58%

ahead

1955

1953.

of

20,000

the

Under

tons.

terms

and

gas

reserves,,

a

modest profit

-

/

■

expanded ';V sharply
in
1951-1955 Capital out-

million

exception

of

of

most

spent at Climax

was

the

was

Colo
sale-

the

50>000 shares of treasury stock

at $2601 a share (through the
exercise of options held by officers

the

of

expansion
tained

the

company)

paid

was

earnings

for

entire
bv

ortization,
talization

re-

charge-offs

and

for depreciation, accelerated

ara-

depletion.
Capiof March 31, 1956,

and
as

consisted

solely of 2,580,000 outstanding shares of no par common
stock
V
jn j955t as compared with 1954,.
sales increased 13.1% to $61.12.

the opening up and preparation
of a new production level at the
mine (the Storke level), and the
expansion of its daily milling capacity from 15,000 tons of ore to

1953; but

oil

totaled $35

which

ernment

previous record

of the free

in

After depre¬

allowance for tax benefits in

iays

below previous cut-off grades.

production attained an all-time peak of 117
million tons—5% above 1953, the
ingot

steel

$1,685,000

Gross

invest¬

gas

the continuing search for

to

period

the

The experience gained through
allurgical field where it is used as thls contract has enabled the coman alloying element.
And demand Pany to obtain very satisfactory
for alloy steel has been expanding profit margins from the treatment
more
rapidly that the total de- of ores which are substantially
1955,

and

and

Climax

molybdenum comes from the met-

mand

Climax-Brun-

recorded in 1955.

commercially June 1962 Climax f^wiU have
the inprofitably delivered the product

of

on

the

of

Division.

oil

consolidation,

those

molybdenum

which

ferences

the

totaled

additional

The Security I Like Best

And

of

ac¬

was

expenditures

depletion
charges,,
together with the write-offs inci¬

dent

fertilization,

by

to

gross

development

from

ciation

2

page

prop¬

total

$933,000 in 1954.

vs.

from

gas

$7,857,000

that

Waterflood

income
ments

Continued

for

properties

things.

many

from

Of

further

the

for

and

capital outlay, about 50%
counted

come

oil

year

$8,851,000.

effort.
The time has

in

i

erties and interests increased dur¬

general economic status of the backward peoples of the
own

sale

of

result of gross capital ex¬

a

investment

attitude toward communism as
the world —- both regarded as
essential to our own safety—has given impetus to growing
suspicion in some minds about our motives and our inten¬
tions. Of course, the masters at the Kremlin have not
failed to make use of the opportunities thus supplied to
Russian

As

again in the future. The fact is, though, that fundamental
and enduring improvement in the plane of living and the
world will

contract

a

penditures in 1955 of $2,158,000^
$1,164,000
representing de¬
preciation,
depletion,
amortization,
abandonments,
and
other
allowable write-offs, Climax's net

good hard common sense. We in our generosity have
to the aid of other peoples in times of great need,
and we shall, without doubt, do so again and again and

world

the

there is

with the Atomic Energy Commis¬
sion.
•
;

come

for

advance

which

the backward

galvanize

can

less

Japan. We had been "played for a sucker," and one result
has been a policy of establishing and maintaining military
bases round the world. The existence of these positions

plus our very aggressive
found in various parts of

,

or

in

suspicious of

Real Problems

Then

could

we

people of the world into following our leadership and
adopting and adapting our techniques and our values by
means of any amount of aid has never had any support

See

of it—grow more and more

portant sections
our

j

We It

As

I

Thursday, July 19, 195S

(300)

million; pretax earnings increased
12.5%; earnings increased 11.7%
to $6.78 a share; cash flow (earnings plus depreciation, depletion
and accelerated amortization) per

of

share

earnings
of sales

43.9%

this initial contract with the Government, the latter guaranteed the
marketing of Climax's milling capacity output of 20,000 tons of ore

Earnings

day; and the company was
obliged to
make
deliveries of
molybdenum to the Government

era ted

sales

12.4%

increased

pretax

vs.

were

to

$8.68;

equal
to
44.1% in 1954,

were

vs.

equal to 28.5%

28.9%

of

in 1954.

The company does

not disclose

the effect upon earnings of accel-

'

eyes

of many Asians to place us
And we have certainly done

our

own

cause.

In

our

efforts to

under suspicion.
little or nothing to help
thwart the imperialists

quite doctrinaire about
philosophical system known as communism, and that
has not helped our standing in India and, for that matter,
in a number of other countries. We certainly should want
in

the Kremlin, we have grown

the

no

part of communism or socialism in our own country.

We have in

point of fact been much too inclined in recent

years to adopt ideas which
munist or socialist thought

are

more

than

we,

wish. We would do well to

be

more

tainted with com¬
for our part, could

insistent upon oper¬

ating our own affairs along the lines laid out_ by the
founding fathers, which certainly had nothing in common
with the paternalism and the collectivism of this day
and time.

:

\

At the

same

as

time other

to how

missionaries to condemn communism
or

economic

use

in this

as

organization in such terms

connection,

a

form of social

as we are

wont to

often succeed chiefly in brand¬

we

provincial, doctrinaire or disturbers of
the peace, or at least potential enemies of peace. This cer¬
tainly appears to be what has happened and is happening
in India for example.
Here is a situation, obviously, which is not likely to
be greatly relieved either by bountiful gifts of treasure or
of military supplies—or, for that matter, by refusing to be
so
generous. Neither does the "Fortress America" notion
go to the root of the difficulty. We need to match our
policies and our programs to the objectives we wish to

ing ourselves

reach much
so

far done.

as

more

Our

carefully and shrewdly than

we

have

past blunders have made our task the

harder. The fact that

so

much has been said and is now

being said and done for home consumption adds to

our

We should be much better off if President Truman
his advisers had




countries

than
the

the

in

U.

of

case

faster

a

rate

This is

molybdenum.
of

reflection

in

at

S., particularly in
the

rapid

more

rate at which the standard of liv-

ing is rising in those countries.

Using the period

1935-39 as a
base, the average annual growth
to date of crude steel capacity has
been 5%. But the comparable figures for alloy steel
and stainless
steel have been 7^>% to 10%, respectively.
Climax's mine, astride the Continental

in

Divide

Colorado,

mountain

a

of

never

is
In

ore.

its /output
of
43,043,138
pounds of molybdenum contained
in concentrate, was equal
of total U. S. production

metal;
U. S.

in

1955,

90%

of

the

treated

an

average

of

to

thought of "Point Four." The

of

30,000

This

was

enabled

the

day.

maintain

and

tons

about

of

record—and

new

mine

world

produced

9,227,700

tons per operating
a

free

of

mine

mill

ore,

of that
that

estimated

To attain this production

output.
the

is

its

distinction

having the largest output of
single underground mine of
kind in North America. Fur-

anv

any

ther expansion of milling capacity
is now underway and is scheduled
for initial production in the fourth

quarter of 1956.
In

*

'

it

should

be

that continual

borne

in

technological

improvements have enabled profitable

use

of

lower

And this trend

was

grade

ores,

accelerated by

of the two contracts .that

company

lybdenum,
ment

for

the

has with the U. S. Gov-

ernment.

This contract has

as

as

the

well

as

its

mo-

its procure-

Government

stock-

pile. Its terms specify that Climax

amortization.

is estimated that if

However, it

no

accelerated

amortization—only normal deprethrough 1955; and could make de- cation — had been charged off.
liveries—although not obliged to earnings
in
1955
would
have
make them—during the first half amounted to an estimated $7.26
erf 1956. Because of the high level a share vs. an estimated $6.51 a
of commercial demand for molyb- share in 1954 on the same basis,
denum, no "permissive" deliveries Moreover, Climax's equity in the

under this contract have been or
will be made in 1956.
On the basis of the drilling
has thus far been done,

operating
that its

reserves

ore

price and

believes

Climax

costs,

that

and under

current circumstances of

total at least

current

annual

earnings

of

its

non-consolidated 84% owned sub-

sidiary,
amounts

Climax
Uranium
Co.,
to around 31 cents a

share.
In the first quarter of this year,
as

compared with the like year-

period, sales decreased
12V2%
and
earnings
receded
26.9% to $1.29 a share. This unfavorable showing was by no
profitable as a result of the com- means the result of either any
pany's experience with low-grade lessening in the demand for moore operations. These 330 million lybdenum or decrease in the price
tons of ore should yield 1.6 bil- of that metal.
On the contrary,

330

million

which
would be above the previous cutoff
grade,
and
25% of
which
would be of a grade found to be

lion

tons,

of

of

molybdenum,

current

market prices
would have a

pounds

at

75%

product mix
value at the mine of $2 billion,
equivalent to $775 a share on the
2,580,000 shares of Climax outstanding at March.
Another important activity of

and

Climax

sented

Molybdenum

by

the

is

repre-

Uranium

Climax

Co., in which Climax has a 84%
stock interest. Climax Uranium's
gross
sales are presently at an

annual
8%

is

aporoximating

rate

million," of

net

-

discussing the company's ore

reserves,

mind

one

per

production is accounting for" which

excess

in

it

and

to 70%

objective the conservation of

difficulties.

or

those

1955,

peoples may well have their'
they wish to proceed with their own
affairs. In fact, we well know that they have. For many
of them collectivism, paternalism, authoritarianism and
the like have no particular terror. Their traditions are
often quite different from ours, and when we go out as
ideas

Britain's
and
per capita consumption of metals is lower than
in the U. S., it is increasing in
Great
Western Europe's

virtually

Their Own Ideas

own

Althcugh

being

$10

approximately

which

carried through to
Government's
purchase all output

income.- |The

to

contract
ha<; five

western Mexico and is continuing

the
is

exploration
owned

Mining

in

Co.,

of'

the

balance

A 100% interest

the

/Ban

Antonio

which has delimited
a small low-grade

and blocked out

uranium

deposit

in

Texas

commercial demand has been so
great this year that although no
shipments have been made uncle;

the regular-grade contract wit
the Government since the end o
1955, the company has neverthe
less asked for some relief u-nde
the shipment schedule of the low
grade contract with the Govern
ment. And as to the price struc
ture, in December, 1955, the pric
of molybdenum contained in con
centrate was increased from $1.0
to $1.10 a pound, and produc
prices were raised commensu
rately.
The unfavorable first quarte
showing, as stated by Presiden
Bunker,

more years to run.

The St. Anthony Uranium Corp.,
in
which
Climax Molybdenum
owns a half interest, has developed one fair ore body in North-

of its leased land.

earlier

for

has

been

expected

an

wholly attributable to tech
nical conditions of a temporar
nature at "the -mine, which wer
in turn the result of what may b
described as "forced draft" opera
tions by Climax during 1954 an
1955. Inasmuch as the costs of al
activities carried on at the min
are charged to current operations
the latter have been burdene
this year by the company's pro

was

Volume 184

incident

gram

of

Number 5552

to

the

The Commercial and
Financial Chronicle

...

restoration

Continued jrom
page 4

the

depleted supply of broken
ore and other
requirements at the
mine. Also, in order to insure
a
steady flow of molbydenum con¬
centrate

and
ucts to its

molybdenum

denum

inventories

concentrate

denum

products.

of

is building up.
At least two Cabinet
volved in efforts to
get the strike settled.
pressure

must

molyb¬

molyb¬
1955, espe¬

Long-range effects of
people realize, since

the first quarter, these
inventories were reduced as a re¬
tion
of'

excess

(sales of Climax

Molybdenum

forms

of

whereas

to

pounds).

for

-

-

boats
tions

in

pounds,

totaled

,v

From

all

43,-'

is

as

destined

expansion; and
in-

the

an
to

The

promising.

alloying ele¬

of .-molybdenum

use

purposes

mand

Moreover, r the supply-derelationship should be such

as' to

result

which

will

adequate

in,a

Stock

-

J.

the current quotation is 76.

f

'

> '

y'M: I

-M;.

said

3,371,616

out

is

;

111,784

week,

publication's

"Ward's."

26.
word

has

been

.

continue to turn out

United

States

-

The expansion^

.includes,

program

other

among
of

\

^

for

last

total

a

of

rates

7/;':

4,587,243

year,

and

cars

t^e

the

count

upswing

over

boosted

by

other

•

past

week

,

based

are

1,

annual

on

capacity

of

1955.

.

:
.

of

487,000,000

kwh...above that

•

...

or

4.2%

over

above the

;

;

the like week

/-

....

•

of the.

V*. •.-•••

.

^

/ /..

_;

Adversely Affected by
Holiday and

Steel Strike

A

.7

4;

'•'

•

revenue

sponding week in

;

1954.

pro-

Four Millionth Vehicle of 1956
'

Automotive

output for the latest week ended July 13, 1956,
according to "Ward's Automotive Reports," returned to five-day
schedules and, in doing so, turned out their four millionth vehicle
0 of 1956. J -7;v
.7.' ■^•..77
*

1956 model building

companies

hy-/./"'-;

U. S. Car Manufacturers Last Week Produced

-

,

(

'7;,. ■/ v;.7

Last week the

v

industry assembled an estimated 111^784 Cars,
compared with 68,110 (revised)" in the previous week. The past
week's production total of cars and trucks amounted to 132,791
units, an increase of 53,120 units above the preceding week's
output, states "Ward's."

•u>;

r"

.

,

j

Last week's car output rose above that of the previous week

43,674

by

r

While truck output advanced

cars,

the past week by

1

9,446 vehicles. In the corresponding week last year 167,473 cars
and 27,950 trucks were assembled.
;
\

!■;'/>

Last week the agency reported there were 21,007 trucks made

77.

the United

in

This compared with

States.

week and 27,950 a year ago.

11,561 in the previous

:

'

•

,
.

'

-

Canadian output last week

was placed at 9,502 cars and 2,336
previous week Dominion plants built 7,719 cars
1,846 trucks, and for the comparable 1955 week, 9,787 cars

In

trucks.

of

rate

a

1955

the preceding

automobile

for the week ended July 7, 1956, totaled 478,297
decrease of 170,695 cars or 26.3% below the corresponding
week, and a decrease of 91,235 cars, or 16% under corre-

Loadings
cars,

$298,100,000,000 during the
open hearth furnaces, a new
like period of last year and actual personal income of
$306,100,slabbing;,mill, and a new cold
•; 000,000 for the full year 1955.
'''-'y^
rolled sheet mill and related fa-- 5 a
The actual 1955 figure is a new revision of the
department's
cilities; construction of a general
previous preliminary estimate of $303,200,000,000 for the full year.
office building in, downtown Chi-,
At
$306,100,000,000, personal income last year registered an
cago; and development of mining
7 $18,500,000,000 jump over 1954. *
7
7:7,,V
new

pro-

production

freight for the week, ended .July 7, 1956,
36.7% below the preceding week, due to
miners' annual vacation, the July 4 holiday and the steel
strike, the Association of American Railroads reports.

For the first five months of the year, the report said, Amer¬
a
$319,400,000,000 seasonally adjusted annual rate.
annual

1955

increase

an

Loadings of

All

'■■•":■;

an

93.0% and

the coal

$323,000,000,000 during May. This compares with
of $321,700,000,000 in April and
$304,300,000,000 in

with

1956

1, 1956.

decreased 276,995 cars, or

of

This compares

for

of Jan.

.as

'r-■ %■:- ■.'

icans earned at
"

was

in

Coal Miners' Vacation, 4th of July

A

4,001,941

Further, the May report noted private payrolls in June,
mostly in non-manufacturing industries, increased about $1,000,; C00,000, according to preliminary indications.
s;'/

three

■

annual

rate

of Jan.

actual weekly

the

ago

weeks

as

or

Car Loadings in the Latest Week

-

¬

mately 6,000,000 net tons of ingots

projects,construction

rate

year

the

Output Picks Up in Post-Holiday Week

was

in.1954.

Department

May of last year.

,

approxi

annual

month ago the

A

previous Week; It increased 438,000,000 icwh.
comparable 1955 week and 1,927,000,000 kwh.

'-i. V'

■

in May for the fourth consecutive
month,
of Commerce reports, with June

rose

for

power

This

-J showing signs of another boost, "/;;•:///
"
yfv';.- The department said Americans earned at a seasonally adjusted

steel-making capacity at its Indi¬
ana
Harbor,
Ind., • plant
from

by the end of 1958.

adjusted
- • ••-• -

concerning
firms, however, are expected to
present models at1 least through July.
5

the 1956 model closeout dates.

rate

.

distributed by the electric light
industry for the week ended Saturday, July 14, 19£6,
was
estimated ,at 10,878,000,000 kwh., according to the Edison
Electric Institute. The continuing steel strike is playing an important role in curtailing electric output. ;j; K
v ; V:
;
and

the industry had turned

Motors

released

production

a

»

with

ago.

The amount of electric energy

77';V/';7/;7'v

Personal income

$260,000,000. The com-/
plans to increase the annual,

figures
tons

Electric

industry

in June from

'••7.

■

production

General

ingot

like week

compared

as

week

a

annual capacity of 128,363,090 tons

2,290,000 tons.

125,828,310

V:.,"'

seasonally

i'-f' :4.

-

and steel for castings

placed at 2,195,000 tons

percentage

and 21,007 trucks.

.

the

about

*

" ^

630,325 -trucks

,

to

domestic

141%

a

■*

companies took part in

No

Net proceeds from the sale of
the bonds will be used to
help fi¬
nance Inland's current
expansion
and development
program, esti¬
mated to entail total expenditures

<<

-

on

Packard remained idle, having ceased

June

3.47

tons

■

the

.

through Friday,

and

cars

cars

noted

1,C00.

bonds, series J, due July 1, 1981.
The bonds are priced at
1003£%/
and
accrued
interest,
toj yield

net

—

•

that

announced

91.0%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The

27,600, while Ford Motor Co. climbed
to 35,500 from 24,200, Chrysler
Corp. to 17,300 from 14,200, Amer¬
ican Motors to 1,300 from
1,000 and Studebaker to 1,140 from

offering $50,000,000 In¬

industry's
on.

duction
was

duction to 56,400 units from

-

land Steel Co. first
mortgage 3 x/2%

5,200,000

that

Steel Institute

and

tons of ingot

For the

with

points.'/ ^v*'..*-i

'•*»—

•

that

statistical

All

Mtge. Bonds

Loeb & Co. heads an
investment banking syndicate

of

a

It represents the highest volume
10 weeks ago, when 112,730 cars
and 22,668 trucks were
produced. Last week's output, crimped
by the July 4 holiday, consisted of 68,110 cars and 11,561 trucks.

Kuhn,

pany

to

since the opening week in
May,

Offers Inland Steel

is

stated

vehicles.
However, by this time
697,329 trucks had been built.

-

Kuhn, Loeb Group

which

Board

/*•./'.•. V..;

The

Go. 1st

owing

a rate of 141%
of the 1947-49 average.
This
the previous month's
rate, but topped June of last

in

"Ward's"

:•

-

■

-

into lt)57.

winter

their four millionth vehicle of
1956, "Ward's Automotive Reports"
stated on Friday last.

-

and

•

360,000

The

•

the

Exchange

wrestling wit.i

year and

next

Iron

12.9% of capacity and 317,000 tons (revised)

"In the automotive industry, United States manufacturers last
week returned to
five-day schedules and, in doing so, produced
'

' The

oil

be

most

goods at

same as

;

t

structure

listed

curtailed

May.
Industrial production,
basis, totaled 139% in June last year.'

indi¬

margins.
is

will

than

worse

Taking,; seasonal factors into account, however, the board's

;

142%

Climax with"

provide
stock

York

likewise

price

profitf

.

company's
New

is

mills

far

•barometer of industrial production
dipped to
^

for

cated..

Federal;" Reserve

the

was

T

its

other

and

be

American

is based

be

may

'*year by two percentage

for

continue

production

produced
•

similar increase

a

am

their costs will

14.6% of capacity for the week beginning July 16, 1956, equivalent
to

will

output held steady from May to June, but
factors included, the trend was down somewhat.

seasonal

pros¬

indications, demand

molybdenum
ment

most,

are

consumers

in¬

are

ore. 'Shutdown of the mines and
tying up of lake
deprive stockpiles of the needed surpluses to carry
opera¬
through the winter months, concludes "The Iron Age."

,

the .longer-term

they

strike

members

Industrial

pects of Climax,-ft is my opinion
that

raising base prices

are

the amount they think

cover

operating rate of steel companies having 96.1% of the steelmakingr
capacity for the entire industry was scheduled at an average of

shortage of irqn

all

somewhat

million

production

043,138
As

46

Steel

during 1955
in

the

supply and delivery problems through this

produc¬

contained

amounted

excess

of

companies still operating

of that to

,; The

•

cially in

sult of sales in

Steel

29

rise, "Steel" concludes.

and

In

10%.

average
„

prod¬

customers, Climax

maintain

(301)

and

•-and

,

the

2,417 trucks.

-

.

>•

t

•' -'.7

.'V

, •

.

-

.

:

>
•

,1 7

.

Business Failures Rise in Post-Holiday Week

'77

"

,

properties.

The series J

/

issue

will

fund

of

■

amount

mandatory
sinking
$1,500,000 principal

;

be

redeemable
at

100.47%
of

Most steel

1959

fund

for

prices

the

,

sinking

ranging

from

company
at redemption
ranging from 105J/2% to
par, plus accrued interest in each

y

prices

Steel

Co.

is

the

All steel

made

produced
process

its

Indiana

seventh

'

■

■

and

net

income

'

'

Defense

either.
met

of

ANGELES,

Miller

Sixth

*

A.

with

& Co. and

of

CO.

of

the
'

Miller-*

local

research
office

-:

•

of

R.

was

Staats

was man¬

department
Walston

-




unstruck

are

small,

run

Approximately
operating, a "Steel"

65

steel

survey

plants,

reveals.

most

still

rolling.

In

the

&

net

week

ended

of

capacity
All

was

of steel

industry and defense

are

users.

not

Some

are

In

are

Germany,

the

expected to

United
ensue

working at

consumers are

States,
from

a

it

climbed to 202
than the 192 of this

or more

small failures with liabilities under
increase to 49 from 39 in the previous week

All industry and tradd groups

had heavier tolls./The sharpest

18, commercial service to 21 from 16 and manufacturing
from 36.
More retail, construction, and service concerns

21

from

to

37

dipped below

wholesale

the toll among manufacturers and whole¬
the 1955 level.

food

price

index, compiled

by Dun &

Brad-

Inc., continued to edge mildly higher last week, standing
at $6.06 as of July
10, as against $6.05 the previous week and
$6.03 two weeks earlier. The latest figure compares with $6.26 on
street

the

corresponding date

a

year ago, or a

drop of 3.2%..

wheat, corn,
Lower were beef,

Up in wholesale cost the past week were flour,

To make

lard, sugar, coffee, cocoa and eggs.
hams, steers, hogs and lambs.
rye,

oats,

The index
31

raw

represents the sum total of the price per pound of
general use and its chief function

foodstuffs and meats in

is to show the

general trend of food prices at tie wholesale level.

Wholesale Commodity Price

already hurt.

on

for

a

In

With

great deal of help.
West

European

Commodity

na¬

steel

like

the

price

increase

that's

be around

price

Level Slightly Higher

Irregular for the Week

movements

continued

irregular with the

downward
commodity
compiled by Dun & Bradstreet, Inc., closed at 287.51

price index,
'
-

labor contract will

Trend

general price level showing a slight gain following the
trend of the past few weeks.
The daily wholesale

capacity, "Steel" reports.
laying in steel to beat a price rise.

;

Sixteen businesses failed with liabilities in excess

1955.

The Past Week

the automobile

J

of $100,000 as compared with 10 a week ago.

The

or near

looks

new

as

.

Among

Wholesale Food Price Index Extends Mild Uptrend

operating
This yield represents

fortunate

threatens in Great Britain.

tions, steel plants
In West

32 in

salers

In the preceding week, 14%

as

Foreign steel cannot be counted
strike

ago.

year

$5,009, there was an

the

15,

liabilities of $5,000

169 last week and were slightly higher
a

failed than last year, but

of

v
;

•

running.

consumers

A steel

July

tons of ingots.

•'

lifted construction failures to 40 from 26 while milder
increases brought retail failures to 132 from 112, wholesaling to

into steel shortage problems early,
steel needs probably can be

mills.

are

7

Failures involving

•

defense

quarter

12.5% of the nation's ingot capacity.

•

Mr.

William

third

recorded.

upturn

by the

associated

prior thereto

the

by

plants

Calif.—Leland

become

projects won't

Most

'

by then, will
brought by the work stoppage.

losses

up

mills turned out 307,000

Hogle & Co., 507 West'

Street.

formerly
ager

has

V

there will be enough defense
tonnage, the government boosted
defense setasides substantially on
many form of steel made

(Special to The Financial Chronicle)

R.

7

and

sure

"l

'

\

;

reports.

Miller With J. A. Hogle

with J.

struggling to make

them
.

-

size

:

This points up the fact that the
really serious effects of the st°elworkers' strike aren't
going to be felt during the walkout. They
will come after settlement of the
dispute, the publication

'
,

LOS

15% of the respond-'
The percentage would jump 20 points in a strike of 30 to
45 days and another 20 points in a 45- to 60-days strike, Only an

be

Harbor,

For the year
1955, the company
and its subsidiaries had consoli¬
dated sales and other revenues of

•

v

were

7 from

than expected, the auto
companies will jump into the steel market
with vigor this coming fall.
That would be at a time when the
steel industry, which should have settled the strike

U. S.

Ind., plant, the fifth largest single
steel producing plant in the U. S.

$663,317,000
$52,466,000.

,

days before they feel the pinch of
the steelworkers' strike.
After that, effects will grow
serious,
"Steel" magazine stated on Monday last.
.77-7 7
A
survey
by the metalworking publication shows that a

would be hurt by a strike of 60 to 90 days.
The
automobile
industry,
largest
consumer
of
steel, has
enough of it on hand to complete the 1956 model run and to make
a slight start on
1957. If sales of new models
go as well or better

by the company is
the
open
hearth

by
at

272

J additional 10%

/,

Inland

14.6% of

go 30

can

However, failures were not as numerous as in prewar 1939 when

/ ents.

to par, and at the option

largest steel producer in the

Capacity ^ :- W.

users

at

strike of less than 30 days would affect
only

the

case.

\

7

of

bonds on each July 1
through 1980, thereby
retiring 66% of the issue one year
before maturity.
The bonds will
from

Steel Production Scheduled This Week

;

Commercial ^tnd industrial failures rebounded to 251 in the
July 12 from the holiday low of 208 indhe preceding

week, Dun & Bradstreet, Inc., reports. The toll exceeded the 224
occurring a year ago. .and the 226 ;in the similar week of 1954.

,

provide

annual

an

^

week ended

•

,

-

......

Continued

on

page

SO

>

r
L

The Commercial and Financial

SO

Chronicle

Thursday, July 19, 1956

...

(302)

The State of Trade and
July

on

272.55

on

markets

same

matical techniques to

•

•

economists who can apply advanced mathe¬
cost and revenue curves, to optimum invest¬

to ouput points can say very little about the
There is scant expertise on questions of what motivates

levels, and

ment

consumer.

.:-///
completed in the Soutnwest
Indiana and Illinois. Sub-,
made by millers sparked by a revival in

gains for the week.

"The

economy.

Harvesting of wheat was virtually
and was nearing its peak in southern

periodic cycles of spending or saving, why one type of com¬
modity purchase is made rather than another, how tne consumer
evaluates the future, what his 'balance sheet' looks like, and so on

stantial

—in

.

'

purcnases were

business.

flour

V•

■

\4-

y-/.

?

•

//C'/y• .■■■"/y

'''//';:•/

'■'&

'-y;'

the possibility of a tight "free" wheat supply helped
prices higher in spite of heavy arrivals. Corn was under ?
at times due to the splendid crop outlook. t< * .

This plus
to

move

pressure
-

second

if fulfilled, would be the

3,337,000,000 bushels, which,

of

week indicated a yield

private estimate issued during the

A

largest corn crop on record.

-

1

?

-

much
smaller crop than last year. Average daily purchases of grain and
soybean futures on the Chicago Board of Trade last week totaled
about
62,400,000 bushels against 53,800,000 the previous week
Oats showed further

•

and

41,500,000

'-

strength aided by the prospect of a

•

J i Cocoa prices were fairly steady. Manufacturer demand was
bpotty reflecting Summer shutdowns and ample supplies on hand.
Warehouse stocks of cocoa continued to mount and totaled 414,809

sentiment

Bearish

fostered

also

was

prevailing for the

effect.
off

But Held
While

Slightly Downward the Past Week

Moderately Above Like Week

sponding period last
and

Year Ago

a

vious week, but
1

Although sales in

buying of used
The
on

total dollar

Wednesday of last week

mates

varied from

percentages:
South

+3

Pacific

New

was

England

and

Middle

West

to

1955 levels by

period ended
a

ago,

year

Regional esti¬
the following

Northwest*+2

to-+-6; East
and. Southwest 4-1 to 4-5

of

last

year.
The call for men's
walking shorts was sustained at a high level. Pur¬
women's cotton dresses, beachwear, and lingerie re¬

swimsuits and

chases

of

mained at the level of the previous week.
were

Best selling accessories

handhags, jewelry and millinery.

Although

purchases

consumer

of

air

conditioners

declined the past week, volume was considerably
ilar 1955 level.
The call for television

and

fans

above the sim¬

sets, lamps and lighting

fixtures expanded moderately.

While

sales in Summer outdoor furniture decreased slightly,
buying of upholstered living room sets and bedroom suites
rose appreciably.
Shoppers boosted their purchases of floor cov¬
erings and draperies, but volume in linens, towels and blankets

the

fell somewhat.

Federal

Reserve

on a

Board's

country-wide basis

index

of

the

week

taken from

as

ended

July

7,

1956, increased 3% above those of the like period last year. In the
an increase of 7% was reported.

preceding week, June 30, 1956,
For

the

reported.
4%

was

four weeks

July

7,

1956

an

increase

of

1, 1956 to July 7, 1956,
registered above that of 1955.

Retail
creased 2
ago,

ended

For the period Jan.

trade
to

volume

in

New

York

City

the

past

7%

was

gain of

a

week

4% compared with the corresponding period

a

in¬
year

trade observers report.

Major

promotions

accounted

for

the

improvement

in

sales

store sales in New York
City for the weekly period ended July 7,

10%

year.
was

an

increase of 4% above those of the like period

In the preceding week, June 30,
recorded.

gain of 10%

was

1956, the index

For

the

recorded.
recorded

sponding period in 1955.




Erie

an

stroyed

a

four

weeks

1956,

ending July

For the period Jan. 1,

rise

of

4%

an

above

increase
7,

1956,

of
a

1956 to July 7,
of

the

ever

vacations

more

He does more loafing on
job and more feather-bedding.
are
more
"standby labor,"

with pay.
the

assistants, and idle
stewards. It is an economic
that improved technical

4

to the northern cities.

Our industrial

of

ance

good

economist
the

trace

is

agement get little. 4/ /'. *

system is a bal¬
natural re-/

ered

equipment,

economists

the

as

who

of

It

invented.

not

was

out

this

to

in

wages

a

,

'

/

>

Economy

Free

a

point

free

Here is a summary:

consid¬

economy.

/::,//,

y......

,

(1) Employers do not set wages.
Workers do not set wages.,./ V '\r '

(2) The general wage level is a
the total population

developed,

thousand

five

some

have

We

of enterprise, and mil- i;
lions of employees are joined to¬

eco¬

an

in

Wages

who gether in production. The system

one

of

results

nearly all the
increased

equipment, investment/and man¬

England.

capital

vast

getting

increase in returns from

set
productivity, while ownership of
We ,'

it de¬
of the

and

power

Great

forces.

sources,

is

earner

balance ,of

years:

against natural resources and
capital equipment. No

told; of trial and error, as the best pos¬
- sible system. Despite some injus¬

available

gold-

interference or
arbitrary
was
absurd. tice, much of which is
force can change this-level, v;////
economists and by taxation and social legislation, <
it is the only just system, the only
/ (3)1 Wages
in different lines
poor ones, just as there are poor
doctors and poor engineers. It was system which will work without depend
on
demand and supply,
the ^demand
deriving from , the
a poor economist who sold Secre-r
dictatorship.
special productivity of workers in
taryV Morgenthau the ridiculous
*4 Automatic Rewarding
any line and the available supply
gold-purchase plan. There was in
Automatically -it. pays the in¬ of such workers, t;:; / /:. /
V' .
Washington during the" Roosevelt
administration the largest collec¬ vestor, the Manager of enterprise,'
(4) Wages go up in America
and
the
wage-earner his proper
tion of third-rate economists and
solely because of the increased
fuzzy-minded nondescripts posing share, based on his contribution to efficiency of equipment and man¬
product. - Since wage- agement, despite declining effort
as
economists ever gathered v.irt the total
one
place. Politicians as a class, earners are a large majority of all by labor.
'
4
%
not
trained
in
economics,
can workers and a large majority of
(5) In the main wages for any
seldom comprehend even the ele¬ all consumers, the system in the
group of workers are set by all
ments
of
economics.
But
once main is one in which wage earn-'
other
workers,
through their
elected to office they set them¬ ers, by their choices of goods and
choices of goods and services in
actually.s decide
what; the .market.
selves up as top economists. Two- services,
/y4y •/•'"■'v-' y./^yy//.'
thirds of the House once voted wages all groups of wage-earners
(6) Wages in a free economy
for the Townsend Plan. One-third should receive. By deciding what

There

removed- legal

program

are

good

■

.

the

of

Senate

once

voted

for

bimetallism.
The

consequences

of this

com¬

plexity of economics are appall¬
ing. An endless stream of unsound
economic
propaganda
results in

they will buy and what prices
they will pay consumers automat¬
ically determine the value of the
services of all wage-earners.

out of these prin¬

The working

ciples in

is complicated,

practice

the general

is simple.
pressure-group legislation, squan¬
For each group
of workers de¬
dering of public funds, and un¬
mand and
supply set the wage.
sound
policies. In the field of
The supply is simply the number
organized labor, systematic propa¬
in the group available to do the
ganda relentlessly spreads three
false ideas. The first is that unions particular job. The demand- de¬
rives simply from consumers. How.
raise, and have raised, the general
much of the article or service will
wage level. The second is that any
raise of wages for one croup helps they take at various prices? Few
men
can
fly commercial planes
all other groups. The third is that
or
audit corporation accounts or
employers set wages and set them
work on steel girders at 40 stories.
at the lowest level they can force
employees to take.
the

control

of

the

employer, the
wage-earner,
or
the
consumer.
Two
thousand
years
of history
this. In the time of the first
Queen Elizabeth all the enormous
powers
of the Queen and the
landowning lords tried to stop a
prove

rise, with cruel punishments.
Wages kept on rising. Even in the
awful poverty of the early Indus¬

process

They get—and earn—high wages.

pick

can

cotton.

corre¬

Cotton

pickers get low wages. It should
be noted that supply is the basic
factor in wages. Ted
a

$100,000

easy
are

work,
very

a

year

solely

few

Williams gets

because

good,

$300

a

each

month.

there

ball players of his

quality. If there
as

absurdly

for

were

wage

that

has

He

ma¬

worker

than

hours

shorter

before.

in

American

The

chinery.

pro¬

/wholly

per worker is
the improvement

equipment can keep ahead of the
declining effort of wage-earners.
The ironic truth is that the wage-

Canal,

entire

the

House of Lords in

Wages are set by forces beyond

According to the Federal Reserve Board's index, department
1956, registered

built

Congress

'

Millions

volume, the report added.

last

Increased

nonsense/

to

miracle

but

Department stores sales
the

nomic

ductivity

'

and
and

declined somewhat last week,

wear

that

exceed

receive in higher
all/the returns from in¬
creased productivity. This is eco-/

.

Revolution conditions
wages,
not the/ employers.

a

purchase

v

the

in

in skill of
They / demand- that

There

trial

Good and Bad Economics

such

4-9%.

4-5 to

continued

trade

reaction.

President Roosevelt that his

•

.

2 to 6% higher than

comparable

Volume in men's Summer

but

retail

by Dun & Bradstreet, Inc.

the

4-7;

to

Coast

of

volume

according to estimates

decreased slightly,

cars

-

ascribe this

propagandists

worker/

wages

r

nomic action more often than not,

automobiles expanded noticeably, the \

new

passenger

'

A

food products was under that of

continued above similar 1955 levels.;

worker"; is

wage-earners

managers

can

Volume in men's Summer apparel, air
the pre¬

year.

some

4

"

,

good.

consumer

conditioners

,

per

toi the- improvement
the"

this vitally important sector of our eco¬

"

law.
Its first effect is
Later it ruins an entire
industry. Men invent plastic
fibers, and the colored population
passes

buying decreased somewhat the past week,
retail trade remained moderately higher than that of the corre¬
T

on

The first effect merely sets
chain

a

moves

Trade Volume Turned

.

,

Unions Lower Wages

favorable

generally

"productivity

works

economic action is never the final

by

in

Labor

but declined

crop.

new

only half of the matter. Supply
the other. The great increase

shop

Reported sales in the 14
spot markets last week amounted to 549,000 bales with purchases
from CCC under the export program accounting for all but a
small portion of the total. This compared with purchases of 67,500
bales in the previous week and 35,000 in the same week a year ago.

conditions

is
is

objectivity thus balancing his expert factual findings,
newcomer indeed makes a unique contribution to the public's
•

as
the
We have

"productivity"

determinant of his wage.

just pointed out that productivity

To his overall finding that "consumer credit
of strength and growth for the economy ratner

thinking

.

.

unnecessary

private calculations.

recent

above

It

worker's

With

report which indicated that 16,962,000 acres were planted,

well

or

ability, merely a change
supply..
,
is universal to refer to the

of safety are, etc.

nomic life!

wage/

drastically/.

change in the

ho

the

due

of the official

following announcement

developed

Weakness

in

opposite," he adds the stricture that for the guidance
and government "we need to know more." . Such

sharply at tie close.

acreage

be

sand-

their

the marvel of American industry..

Continued from first page

week

of the

most

and

quali¬

as

worker's

inquiry would, for example, include how the4 families in debt
would fare in the event of economic trouble, what tneir margins

long-term

,

steady

held

prices

in

There would

continued to

hog prices trended lower as receipts increased and
Cotton

tunnels

business

this

bags at this time last

Lard prices moved irregularly higher aided by a recovery
in vegetable oils late in the period.
Following early steadiness
year ago.

hogs

rate would be reduced

exploration.

the

than

of

.

year.

a

willing to work

his objectivity, Dn Rolfe concludes his article
most constructively by citing the areas in the field calling for
has been a-source

purchases of raws by; refiners in anticipation of
expanding seasonal movement of refined sugar. Coffee developed;;
^firmer tone at the close on reports of cold weather in Brazil.
replacement

those of

Double the number of men
fied and

Maintaining

further

in his

supply.

tne

constituting

group,

v

-

only fair with buyers showing caution in the belief that more
attractive opportunities will occur as the harvest nears in the
Northwest. Domestic raw sugar prices firmed up aided by heavy

exceed

demand for
goods and services. So everyone can, by jXiefauit, be his own
expert." /f v •4
4':-/-.4V/'V '"'v.:4■ 4'■ y'4" 'y.4- : %vy
Incidentally, such skepticism over consumer behavior research
just now gets a timely boost from a new addendum, "Consumer
Expectations: 1953-56" to Prof. George Katona and Eva Mueller's
analyses of consumer-questioning conducted at the University of
Michigan for the Federal Reserve Board. From an index of con¬
sumer attitudes running back to 1952, the authors frankly conclude
that no help is derivable therefrom toward predicting economic
changes. They find that Mr. Consumer-Citizen registers pessimism
only after business has turned- downward, optimism only after

but the useful¬

individuals

the

all

of

ness

usefulness

individual's

the

not

that sets the rate,

short, all factors bearing directly on the aggregate

Unfinished Exploration

early in-the week with most large bakers said to have covered
their needs for around 120 days. Business in Spring varieties was

bags against 392,721 a week ago and 236,129

is

the

hard wheat bakery flours took place

Substantial bookings of

alone, this system pays all
wage-earners their proper wage.
The wages of each type of worker
will be set by demand and supply
according to the worker's useful¬
ness
to society as a producer. It

activity has >vell begun to rise.

a year ago.

Supply Factor

Left

•

and rye scoring best

firmer with wheat

were

Industry
previous and with

10, comparing with 286.38 a week
the corresponding date a year ago.

Grain

The Demand

Continued from page 5

29

Continued from page

would

a

thousand

get

about

are

set fairly,

automatically, with

of workers getting
wages according to their contribu¬
tion to production.
*
-

each

group

The Unions'Impact

4
We

can

consider

now

/

v

unions.

propaganda that
raised the general

First there is the

have

unions
level

of

wages.

In

the

last

150

have consistently in¬
creased.
They
are
perhaps six
times as high as at the start. For
the first 50 years of this period
there
were. no
unions. For the
second 50 years they were a tiny
minority of all workers, of no
importance. In the last 50 years
union
membership
has
grown

years wages

rapidly. But today union workers
are
only something over a third

one-fourth of
statistical
that the general increase

of all wage-earners,

all workers. There is no
evidence

of wages

has been connected with
evidence is

unions. The weight of

against this notion.
We

do

statistical
not

not

need

proof

raise the

economic

that

unions

or

do

general wage level.

Volume 184

Wages

Number 5552

come

The Commercial and Financial Chronicle

...

from production, and

unions do not and cannot increase
total production. If unions were
essential

to

increase

unorganized
have

two-thirds

been

■*

:'

to

levels

wages?

relation

Unions

costs

also

his

house,

Continued

higher
transportation

And

process

the

Some

of

to raise the wages of their
members
to
levels
they cannot
is

in competition with the unorganized
majority of workers,
They obtain these unearned wages
earn

ing

16

A. A. Potter Discusses
Mr. De

Conclusions

Fremery's Article

Any impartial economic analy(i)
their

Unions
own

raise

the

ereign"
of

wages

f

especfally

d»

j

£ fh'_

is

i

a

wag|s
8

the

in

The

■,

thr

pointed out by former

as

Governor
"Fed"

members, by force.

nria?,rtLn

,

Marriner

inevitable

that

the

lieved

of

of

result

The

the

come

the

is

to

such

"cost-of-liv-

which wages and
other contracts (but not govern¬
ment contracts such as pensions!)
ing-index"

re¬

to bal¬
whenever the

by

"escalated."

are

enougn

budget

we've

nearest

"standard"

a

this

of

taxpayer must be

paying

the

ance

Eccles

congressional hearing.

a

from getting desperately needed goods and
services, to paralyze enterprise

This is an economic analysis,
The reader can decide who is to

over

made.

great

oiarne.

and to reduce
total production for the entire nation.
This
special
privilege
is

wages,

buttressed

they

areas,

No recommendations
Outside
the
matter

unions

serve

useful

many

purposes. But in the area of wages

by the privilege
of
picketing, which in practice becomes organized mob
violence, to

injure our economic progress.
They may destroy it. One
suggestion to the reader is made

prevent the public from continuIng to patronize enterprise and to

here. The next time you hear a
politician orating about the maenificent improvement in Ameri-

prevent
work

wage-earners

willing to
working and earning
'".Viv--".

from

wages.

can wages due to the unions try
to decide what that politician is,

f

„

'

.

Union

enterprise
he

you

•

•;

-

and

*■.hi

An

index, however, is

"aver¬

an

creation of union

monopoly,

only mildly restricted
practices, the
union
shoo
hr.ving the same evil eirect. \vnui
-

reduced

the

the restricted

even

"value"

shortened

hours.

These monopoly practices

extraordinarily

effective.

absolute necessities.

tire

union

to

establish

were

Houses

Permit

union

a

a

ciation

But
the

ordinary

aristocrats of

four* dollars
labor

<

is

an

sheer

laborers

are

labor.

Three

hour

for

extortion.

to

such

market

for

r 1 "H-ipai

the

company's

ayi

ar*.^

V^lfejr
rP!l0rlc,u

,

^

infj?r

.than
,

able

were

getting

higher

wages

the
mature, educated, and
principals of the schools. This

in the state which set
up the first

have

we

granted to
to

a

legal privilege
minority of workers
levels they cannot

force

wage

in

fair

earn

competition

with

other
workers.
The
result
is
a
destruction of the entire economic
.equilibrium. The effect of artifi-

eially raised
the

cost

creased
,

;
.

of
cost

wages

the

Great
.

.

ers,

is to increase

product.

spreads

This

through

made by the
preventing
increased employment
and adding
to
the
non-union majority outside. The very nature of forced
wage
increases
is
cannibalistic.
,

union

increases

increases

those

and

the




steel

(food

of investments that

constantly
(sometimes all but
are

depreciating
wiped out), not by wear-and-tear
(which can be replaced in the
regular
course
of
accounting),

values.

but

ideas

ented)

in

appear

in

by new techniques contribut-

the

The First Bos-

ton Corp.; Blyth & Co., Inc.; Eastman,
Dillon & Co.; Harriman
Ripley & Co. Inc.; Kidder, Peabody & Co. Inc.; Lehman Brothers;
and Smith, Barney & Co.
v

_

-Two With First California
Chapman and Charles A. Philbrick have become affiliated with
f irst
California
Company

f^rnnrated,

647

South

—

two

half-yearly periods and for. the 12 months ended
follows:
,v:v -■■'0: ''
Share

Empire Trust-

(Special to The Financial

LOS
_T

stability

,

,

.

A

10.56

16.98

1.91

3.53

1.55

1.88

3.29

3.<5

7.24

8.40

13.63

15.87

_

wlm J. Logan & Co.
W*tk r

r

u

p

u

Wltn L. r. iiUtton Co.
ANGELES,

Arbogast
&

is

Calif.—Lewis

now

Company,

Spring Street.

with

623

E.

F.

South

price

that

can

2.01

2.56

4.02

4.80

2.30

2.76

4.44

5.36

3.57
2.41

1.58

1.72

3.10

3.36

11.91

16.66

23.17

2.58

4.78

5.14

2.61

4.77

5.39

Trust?
P. Morgan & Co

♦Includes

June,

affiliate's

1050.

September,

In the

10.41

2.34

York Trust--

earnings.

:j:Ad.justel

in earlier

^Adjusted

1955.

2,21

d

United States Trust?,

mean

the

calorie

of

in

price,-does

in

any

its

ratio

value
to

There
based

thus

nutrition

of

real

its

but

own,

income

be

can

upon

changes
change, not

money

no

in

value.

sane

system

averaging all "values,"

giving

the

word

with

synonymous

meaning

a

"prices"

or

priced values in the market place.
Such

reasoning

Money

and

value,

are

Wilde

put it,

the

and

everything

nothing, is
also

and
now

who knows

man

a

of

goes

as

circles.

price

not synonyms. As Oscar

price
of

in

runs

wealth,

for

the

a

the

the

and

cynic; and
of

wealth

cynicism

it

be¬

managed.

3,

30

-0-!

.

•paAus oq p[noo Xuuui su doicm

•••qjuap ssa ipaau u si qjuap iao
ruuo

juqj si 'sn

pjiqj

jgiopop jno 'pej oiSbii

3.69

Manufacturers

for

•

fAdjustcd for 20% stock dividend
periods for 10% stock dividend in

stock

splits

in

January,

1956.

12 months ended

June, 1956, the earnings improvement
was even greater, approximately 22%.
Thus-the effect of higher
interest rates and of increased volume of loans is being felt more
and more as time goes by. Yet there has been nothing approaching
the

price betterment that we are justified in expecting, for despite
improved earnings bank stock prices certainly have not
kept pace,
.v.;:'?:; >:■'
■>.- 1
these

:'\.

Again, as in the first quarter, those banks that reported re¬
of security operations showed, with one exception, minor
losses in relation to operating results. First National City reported
losses of $4,396,000, equal to approximately 18% of the half-yearly
operations (or to 7.7% of the 12 months' results). J. P. Morgan &
sults

only about 2% of the 12 months operating earnings. The banks
tuat, at L.e mid-year date, reported results of securities sales with
the total losses, and the per-share figure, were the following:
Total Loss

Bankers

Trust

Per Share

LET'S LOOK AT THE BRIGHTER SIDE

Many thousands of Ameri¬
cans

are

cured of

every year.

people

are

more

going to their

doctors in time.,.To learn
how to head off cancer, call
the American Cancer
or

Society

write to "Cancer" in

of your

care

local Post Office.

American Cancer

$0.13

$533,000

cancer

More and

Society

%J®

'

Corn

826,000

Exchange.

r^tt-First National City
Guaranty

Trust
Bank

J. P. Morgan &

New

York

.

Co

Trust

,

0.07
0.03 '

134,000

SECOND

0.37

4,397,000
-

332,000
588,000

Irving Trust

,

°£

LCS

21.48

8.24

1.75

1.93

^ecome associated

Figueroa Street, members
e ^_os Angeles Stock Ex*
ep
was f°rmerly

of

anything is the price of non-capi¬
(food). If, and only if,

tal values

1956

2.96

Hanover

^?8S' ^°S^rs & Co., 5d9

Hutton

$4.86

1.19

Chronicle)!"

^

C.

1955

$4.43

2.17

ANGELES,, Calif.—Gilbert

.

8

c

1956

$2.37

1.48

in

■

—

1955

0.98

J.

4r

V

Hanover Bankf
Irving Trust

Chemical

^

*

First Natl. City*-——

Guaranty Trust

prog¬

innovation.

-Twelve Months-

$2.24

Chase Manhattan

vi

industrial

Capital values should not, even if
they could, be stabilized; the only

Operating Earnings
First Half

..

June

..

.

Per

In-

r

research arm to keep

a

of

ress

as

"firms" most

Bethesda 14, Md.

Bank Stocks

Empire Trust, which does not report interim operating
figures; but its indicated figures are used. The schedule for the

Spring

Gross* Rogers

combinations

ALDEN A. POTTER

of those of

Street,

Joins

to

not very firm unless

with, if not ahead of, the

up

gets

Co.'s security losses of $161,000, equal to 53 cents per share, was

(Special to the financial chronicle)

LOS A.NGELES. Calif.—Duff G

such

corporate

are

they have

nations

The expected increase in the 1956 first half earnings of 13
leading New York City banks was outdone, and the result was
a
jump of about 19% for the six months over the 1955 corre¬
sponding half. These were operating earnings, with the exception

New

are:

(not

Box 181 R.F.D.

was

Among those associated in

capital
due

accounting in
land, equipment,
necessarily pat¬

on

June 11,1956.

__

income

ne^

underwriting

wa?es

by force and everything the other
workers
buy goes up. But the
building trades unions also force
wage

of

This Week

in-f'

sales of the product
union
workers,

steel

the

and

By ARTHUR B. WALLACE;

t.lC

payable Sept. 10, 1956 to shareholders of record Sept. 1, 1956.

the

especially the Wage-earners.
higher costs also reduce the

The

price

and

of living neces¬
supply)
which
is
"capitalized" in figuring the value

appre¬

in

investment!),

and

Bank and Insurance Stocks

Lakes

.

in

losses

cost

or

setting value

value

cents per share has been declared,

economy, reducing production and
reducing the income of all workThe

the

with

coal,

C4AC.

v

and

'
'
and
>505,086.

_

a

shall

income

real

sities

of money only by a stt
values, stated in numbers,
which maintain (or fail to main¬
tain) a one-to-one correspondence

sales amounted to $36,-

university in America.
Thus

an

depreciation

or

saving

the

tell

of real

year e

.'0n

Some

time ago it was discovered that in
the finest high schools some
tcrs

not there is

or

can

—

shop

jani-

.

we

stores and sells bituminous coal.
Production from the company's
Bankers Trust
mines totaled 5,629,189 tons in the
Bank of New Yorkyear ending April 30, 1956. Elec■00: Chase Manhattan i
tric utilities constitute the largest
Chemical Corn Exchange^

restrickfhembership, and
and
dfmand can drive
to fantastic levels. It docs

these

in numbers

expressed

prices; for

"value"

North American Coal's common
not requirement or education
or
stock was SP1U ten-for-one on
long training to do plumbing or June 6> 1956- A dividend of 15
bricklaying or house painting or cents per share was paid on June
scene
shifting or electrical wiring.
1956 and a dividend of 15
wages

we

Public offering of 250,000 shares

ard then

supply

as

other than

whether

.

numbers, .they

this defect

to

"classical" theory of

—-

the exorbitant wages

employment of

To remedy

vision in the

used in Part as additional working
capital for the company's expandNew ' Deal
a
New
York
union mg mining operations and in part
passed a rule that the only new for the acquisition of new and
members should legitimate sons additional mining machinery.
4
of the members. Note the
highly
North American Coal produces,
such

with

have to distinguish between capi¬
tal growth, due to technology (not

prenticeship - regulations worked
perfectly. In the heyday of the

standard. The Taft-Hartley

radically

problem, however, can be
resolved only by a
sweeping re¬

North AmeiicanCoal Corp.
shop, an indefensible monopoly p01?1™011 Sitock, $1 par value, is
.which prevented nonunion men being ^ade today (July 19) by
from working. Then
they system-1: ?n.
underwriting group headed
atically developed a program of jointly by Dommick and Domimck
keeping
workers
out
of
their ^5*
Ball, Burge & Kraus. The
unions. Such things as
$1,000 ini- stoSk 18 Pncved at t1.2 ppr shj?,r,e\
tiation
fees and impossible" apProceeds from this sale will be

has

change

technology....

This

vestment"

that

by the Federation of Labor
unions for 50 years. By relentless
sti ikes they established the
closed

Act

weights

;;;

Revising Classical Value Theory

Stock Offered at $12

prac¬

ticed

moral

,;

North American Goal

destroy

property
been greatly reinforced
by the

s

have two choices.

Monopoly

tary arithmetic.

are

of

the

This is the risk in
competitive
capitalism; and its effect is to
simply ignore "savings and in¬

of which

non-union majority,
"price level" falls, since all the age of relatives" as that staunch
(3) The general wage level in new money spent must be repre¬ advocate of "100%
reserves," Prof.
America would be higher than it sented by a sum not previously Irving
Fisher, put it; that is, it is
ons are the
strike and limitation is> and wages of different groups
a
existing,
that
is,
it
must
be
con¬
decidedly
shifty
"standard"
of membership. A strike is a
legal of workers would be fairer, and stituted
by an excess of what is since it reflects a "percent change"
privilege granted to unions by law
low-income groups would spent over what is obtained
from a "base" which is not itself
by
to
destroy the property of the have a higher standard of living,
taxation. Such an inflationary (?)
a
constant.
Indexing
averages
owners
of
enterprise,
to
keep ^ there had never been a union,
gap in the budegt is just elemen¬ weighted
constituents;
and
the
by force, violence, destruction of
property, intimidation, and political pressure. The primary
weap-

citizens, not involved,

than

Should Not Stabilize Capital
Values

*

on.

sis leads to these conclusions:

appreciation

an

31

outmoded "values."

endless

goes

page

greater

But the truck drivers

theirs.

from

forces

truck

more.

get

for

more

union

and

dog-eat-dog

have

many aims, some of them excellent in every way. But their chief
aim

auto

wages

■"

What, then, is the

unions

would

subsistence

on

for 100 years.

the

wages

worker pays
The

(303)

0.16

98,000

0.02

161,000

0.54

*5,000

1-'

Bank Stocks
Analysis

The current year appears more
record

than

are

ever

ANALYSIS

—

efficiently utilized,
as they not only act as offsets to operating profits, but, when the
rising trend in loan volume is reversed as soon or later it must be,
t-e banks' securities portfolios will probably be added to at quite
favorable prices relatively.
here, these losses

&

13 N. Y. City

♦Profit.

As has been observed

QUARTER

COMPARISON

0.07

to be headed toward

high bank earnings, and again conservative investors
urged not to overlook this neglected group of securities.

are

on

Request

Laird, Bissell & Meeds
Members New York Stock Exchange
Aiemtrcrs

120

American

BROADWAY,
Telephone:

Bell

(L. A.

Stock

Teletype—NY

Gibbs.

Exchange

YORK 5, N. Y.
BArclay 7-3500

NEW

1-1248-49

Manager Trading Dept.)

Specialists in

Banh Stocks

The Commercial and Financial Chronicle

V

-

* Able Mining Co.
July 2 (letter of notification) 300,000
stock (par five cents). Price—$1 per

shares of common
share. Proceeds—
For mining expenses.
Office—7119 E. Camelback Road,
Scottsdale, Ariz. Underwriter—The Fenner Corp., New

(letter of notification) 3,000,000 shares of comstock (par one cent).
Price—10 cents per share.

mon

mining

Proceeds—For

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.

,

M.

(letter of notification) 103,903 shares of common
stock (par $1) to be offered to stockholders on a basis|
of one new share for each 41/e shares held. Price—$2 per /
share.
Proceeds—For relocating machinery and equip¬
June 4

working capital.
UnderwritersM. Margolis and Leo A*. Strauss, directors of the

plant, additional equipment and
Office—611 West Main St., Corry, Pa.
ment in

Henry

company.

Oil

Allied

Industries

&

Corp.

,«

(letter of notification) lo0,000 shares of capital
stock (par 10 cents). Price—$2 per share. Proceeds—
.For the acquisition of oil and gas;leasehold interests
and working capital. Office — 403 Wilson Bldg., 2601
Main St., Houston, Texas.
Underwriter — Muir Invest¬
ment Corp., San Antonio, Texas.; D. N. Silverman & Co.,
Hew Orleans, La.; Texas National Corp., San Antonio,
.Texas.; Charles B. White & Co., Houston, Texas.; and
Reed and Sloan Co., Dallas, Texas.
June

14

.

(letter of notification) 42,857 shares of class A
common stock
(par $1). Price—$7 per share. Proceeds

construction, equipment and working capital. Of¬
23rd St., North, St. Petersburg, Fla.
Under¬
Miami Beach, Fla.

fice—2700

writer—Atwill & Co., Inc.,
Allis

June 29

(Louis)

July 1, 1976.
ceeds—To
Baird &

Price—To be supplied by amendment. Pro¬
bank loans. Underwriter—Robert W.

repay

Co., Inc.. Milwaukee, Wis.

Allis

(7/23)

Co., Milwaukee, Wis.

$3,000,000 of sinking fund debentures due

filed

(Louis)

'-v.

loans,

Underwriter

—

kee, Wis.

.■■■:

American

May 11

expansion and working capital.
Robert W. Baird & Co.,J Inc., Milwau¬
<
\.y //\7
for

Horse

(letter of

stock.

mon

Co., Milwaukee, Wis^

and

Racing Stables, Inc.
com¬

Price—At

For

—

Underwriter—Columbia Securities Co., Inc. of California,

Beverly Hills, Calif.
American
.Feb.

10

Price

—

filed

-

business.

t

"

.

,

/

Insurors'

Development Co.
400,000 shares of common stock

$2.50 per share.
Office

Proceeds

—

To

(par $1).'

expand service

Birmingham, Ala.
Underwriter
Odess, Martin & Herzberg, Inc., Birmingham, Ala.

+ American

—

Investors

Life

Corp.,

Insurance

Tennessee law.

Co., to be
Underwriter—None.

if Aquastills, Inc.
July 2 (letter of notification)

organized

under

due

30,000 shares of

common
—

15

filed

'»

Co., Los Angeles, Calif.
$4,099,300 of 5% subordinated debentures

July

1, 1986 (convertible until July 1, 1964) and
63,614 shares of common stock (par $1). The debentures
are to be offered for
subscription by preferred stockhold¬

Ashtabula, Ohio.

■XOf each preferred share held, while the
are
to
be offered for
subscription

by

Atlanta

Gas

stock

10 shares held

(with

an

oversubscription priv¬

retire

Proceeds—To

indebtedness

of

the

com¬

for working

July 13 filed 300,000 shares of ordinary (common) stock
(par £1 sterling), of which 265,000 shares are to be sold

35,000 shares for selling
supplied by amendment.
purchase a 49% stock interest in Aero
Technics, S. A., for approximately $500,000, to make a
$200,000 down payment on three S-58 Sikorsky helicop¬
ters to cost a total of $1,025,000, and to retire $175,000
company
—

and

To

common

shares

common

stock¬

Underwriter—Blair & Co. Incorporated,
Offering—Expected in early part of August.

Corp. of America

(letter of notification) 150,000 shares of common
Price—$2 per share. Proceeds—For min¬
expenses.
Office—290 N. University Ave., Provo,
Underwriter—Thomas Loop Co., New Orleans, La.

Storage, Inc.

May 14 filed 15,000 shares of preferred stock (par $50)
and $100,000 convertible debenture bonds. .Price — At
Proceeds—For

capital.

Office

William

H.

—

capital

Baltimore,

Burton

is

expenditures
Md.

and working
Underwriter-—None.

President of company.

Big Horn Mountain Gold & Uranium Co.

mineral
Colo.

properties. Office-—1424 Pearl Street, Boulder,
Underwriter—Lamey & Co., Boulder, Colo.

Birnaye Oil & Uranium Co., Denver, Colo.
(letter of notification) 1,000,000 shares of class
stock (par five cents). Price — 10 cents per
share. Proceeds
For mining expenses,
©ffice — 762
April 6
A

common

—

'

Boston

Pittsburgh

Chicago

Denver Club
mayer

San Francisco

Private IVires




to

all

offices

Cleveland'

the exchange offer, Canadian Husky
90%

Bldg,, Denver, Colo;.. Underwriter—Birken& Co.. Denver. Colo.
V

of

of

shares

the

each

class

of

of Husky

Paper & Fibre Co.

/; Champion

(7/26)

July 3 filed $20,000,000 of debentures due July 15, 1981.
Price —To
.

be

supplied by

Proceeds

amendment.

—

To

notes currently outstanding
and for general corporate purposes. Underwriter—Gold¬
man, Sachs & Co., New York.
:
of

$3,500,000

prepay

Chesapeake

term

Shores

Country

Club,

Inc.

May 29 filed 5,000 shares of common stock, of which it i3
the company's intention to offer for sale at this time
only 2,500 shares. Price—At par ($300 per share). Pro¬
ceeds
To construct and operate a recreation resort.
—

Office—Upper Marlboro, Md.

Underwriter—None.

if Christian Fidelity Life Insurance Co.
July 12 filed 20,000 shares of common stock (par $10) to
be offered first and for period of 30 days to stockholders.
Price—$26

Proceeds—For capital and surplus,

share.

per

including $200,000 to be invested in securities common to
life insurance industry.
Office—Waxahachie, Tex.

the

sales

to

be

made

through

Albert

Carroll Bates, President of the company.

stock (par $1).

Beta Frozen Food

71,363 shares of 6% cumulative redeemable

Underwriter—None,

June 29

ing

con¬

Oil; and Canadian Husky reserves the
right to declare the exchange effective if less than 90%,
but more than 80%, of such shares are to be so held,
stock

be

To

if Baruch Oil Corp.
*!."/■'/•*"■. VJuly 9 (letter of notification) 30,000 shares of common
stock (par 10 cents).
Price—At market.
Proceeds—To
selling stockholder. Office — 400 Madison Ave., New
York, N. Y. Underwriter—None.
\
r

Utah.

cumulative

Calgary, Alta., Canada

Husky Oil Ltd.,

as a result of
will hold at least

★ Bahamas Helicopters, Ltd., Nassau, B. W. I.

Bentomite

5!4%

plus accrued dividends. Proceeds—To discharge current
borrowings aggregating $1,000,000. Un¬
derwriter—William R. Staats & Co., Los Angeles/Calif.
Offering—Expected today (July 19).

if,

Corp., Washington/ D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter /— None..
Harry Kahn, Jr., of Washington, D. C., is President and
Treasurer. /;./';"■ N; /•;;;Vr;://'/■
N/:/M/;/;y*

Price

of

stock (par $20). Price—$20 per share,

Husky Oil 6% cumulative redeemable preference share
of $50 par value.
The exchange will become effective

Industries

of

50,000 .-shares

vertible preferred

preferred stock (par $50) and 1,069,231 shares of common
stock (par $1) to be offered in exchange for the out¬
standing stock of Husky-r Oil & Refining , Ltd. on the
following basis: One share of Canadian Husky common
for each Husky Oil common share of $1 par value and
one share of Canadian
Husky preferred stock for each

both of Philadelphia, Pa.,
Weill, Blauner & Co., Inc. of New York.
''///NM

—

/

Interstate Telephone Co.

filed

28

Underwriter—

purposes.

Co., Chicago, 111.

California

Canadian

Charles A. Taggart & Co., Inc.,

account

&

June 29 filed

Corp.,) Philadelphia, Pa.
$600,000
6% convertible subordinated
due June 15, 1968. Price—100% of principal

to its affiliates for money borrowed

Proceeds

:

short term bank

filed

stockholders.

Price—$7.75

capital and general corporate

June

capital. Underwriters—Hallowell, Sulzberger & Co. and

for

shares

^California Eastern Aviation, Inc. (8/2)
13 filed $2,900,000 6% convertible sinking fund
debentures due Aug. 1, 1969.
Price—To be supplied by
amendment.
Proceeds — For new equipment, working

•

Atlas Credit

Automation

five

25,000 shares of common
per share.
Proceeds—To
Office—Esperson Bldg., Hous¬
Underwriter — Rowles, Winston & Co.,

$2).

Cruttenden

Tulsa, Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be
named by amendment. .
^

and

each

July

Atlantic Oil Corp.,

amount.

shares for

• Brown Investment Co., Ltd., Honolulu, T. H,
July 11 filed 60,075 shares of common stock. Price—To
be supplied by amendment.
Proceeds—For investment,
Business—A diversified, open-end investment company
of the management type.
Underwriter—None.

York; and Courts & Co. and The Robinson-Hum¬
phrey Co., Inc., both of Atlanta, Ga.
"
y.:

debentures

new

(letter of notification)
(par

ton, Texas.
Houston, Texas.

New

11

three

of

an

two selling stockholders.

(par $10)

Feb. 23-(letter of notification) 9,300,000 shares of com¬
mon stock (par one centL Price—Three cents per share.
Proceeds—To be used for exploratory work on mining

Philadelphia

stock

ilege); rights to expire on July 31, 1956.
Price—$25.50
per share.
Proceeds—To reduce bank loans and for new
construction.
Underwriters — The First Boston Corp.,

June

basis

(with

July 2

being offered for subscription by common stockholders
of record July 10, 1956 on the basis of one new share ;
for each

/

I:/ Brewster-Bartle Drilling Co., Inc.-/

Underwriter—None.

shares of common stock

Price—
Under¬

oversubscription privilege). Price—To be
supplied by amendment. Proceeds—Together with funds
to be derived from $40,000,000 long-tefm loan, and with
company funds, to defray cost of new aircraft, flight
equipment and other facilities.
Underwriter—F. Eber- *
stadt & Co., New York.
/.//A/m/V';'/////

Light Co.

filed 88.2b0

20

par.

New York.

held

Associated Grocers, Inc., Seattle, Wash*
April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds.
Price — Of
stock. $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

June

(par $5) being offered first to common stockhold¬
one new share for each

the

on

/

ers at the rate of $10 principal amount of debentures

<

Park Ave.,

(letter of notification)

if Braniff Airways, Inc. (8/2)
July 12 filed 1,105,545 shares of common stock (par $2.50)
to be offered for subscription by common stockholders

(par $25). Price—At market (estimated at $30 per share).
Proceeds—For additions and
improvements.
Office—
_

share for each

Proceeds—lor con¬
S.. D. Underwriter

writer—Janney, Dulles & Co., Inc., Pniladelphia, Pa.

,

Reynolds & Co., Inc., New York.

4616_

new

a

eight shares held; rights to expire on July 24.
$25 per share. Proceeds—For working capital.

acquisition of new plants and equipment and for work¬
ing capital. Office—West Haven, Conn. Underwriter—

Arden Farms

June

of the insurance firm.

it Ashtabula Telephone Co.
July 6 (letter of notification) 150 shares of common

of

share.

per

Office—Rapid City,

ISSUE

of record June 25 at rate of

ers

from

rowed

REVISED

County Coal Corp., Philadelphia, Pa. / ■ >'
10,000 shares of common

Boone

stock

■

of indebtedness.

(par $1). Price—$10 per share. Proceeds
For
working capital, etc. Business—Development of distilla¬
tion appliance.
Office—311 Alexander St., Rochester 4,
Underwriter—None.

•

June 25

Proceeds—Together with $7,750,000 to be bor¬
insurance companies, for construction or

amount.

PREVIOUS

0.04455

of

Price—$24

costs.

SINCE

ITEMS

—None.

Phoenix,

Co.,

Armstrong Rubber Co. (7/23-26)
^
H
May 31 filed $9,250,000 of convertible subordinated
debentures due June 15. 1971. Price—100% of principal

New York.

.stock

N. Y.

Finance

—

Nashville, Tenn.
July.13 filed 4,962,500 shares of common stock (par $1),
of which 962,500 share are to be reserved for the exercise
of options by company
employees and 4,000,000 shares
are to be offered
publicly. Price—$2 per share. Proceeds
,■—To purchase all of the common stock of American In¬
vestment

Public

the rate

at

held.

struction

■

Ariz.
Sept. 16 filed 78,006,081 shares of common stock to be
jlfered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share.
Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by

pany

notification) 3,000,000 shares of

par (10 cents per share).
Pro¬
organizing and operating a racing stable.
Office—Virginia and Truckee Bldg., Carson City, Nev.

ceeds

by

,

(7/23)
June 29 filed 47,729 shares of common stock (par $10)
to be offered for subscription by common stockholders
of record July 18, 1956 at the rate of one new share for
each five shares held; rights to expire on Aug. 6.
Price
—To be supplied by amendment.
Proceeds—To repay
bank

supplied

July 10.

Arizona

July 2
'—For

be

Underwriter—None.

Products Corp.

Allied

each 10 shares held.
amendment. Proceeds — To
bank loans. Underwriter—None. Statement effec¬

ndesman

Supply Mfg. Co., Inc.

Aero

shaie

tive

Office—319 Uranium

expenses.

holders

Price —To

I;

Inc., Grand Junction, Colo.

Aoundant Uranium,

Teb. 23

•

holders at the rate of one share for

repay

York, N. Y.

•

Thursday, July 19, 195 S

* INDICATES- ADDITIONS

Registration

Securities Now in

•

...

(304)

32

C.

I. T.

Financial Corp.

May 17 filed $75,000,000 of debentures due June 1, 1971.
Price—To

be

supplied

by amendment.

Proceeds—Pri¬

marily for furnishing working funds to company's sub¬
sidiaries.
Underwriters—Dillon, Read & Co. Inc., Kuhn,
Loeb & Co. and Lehman Brothers, all of New York.

Offering—Temporarily postponed.
Colonial
June

4

Utilities Corp.

(letter
6%

amount

of

June

1966 to

of

1,

common

notification)

of

$109,245.50

subordinate

convertible

principal

debentures,

due

for subscription by holders
rate of $1.30 for each share

be offered

stock

at

the

of debentures is convertible into 18
shares of common stock.)
Price—At 100% of principal
amount.
Proceeds—For working capital, construction,

held.

(Each

$100

purchase of Dover plant, etc. Office—90 Broad St., New
York, N. Y. Underwriter—None.
Springs Aquatic Center, Inc.
500,000 shares of common stock (par 10
Price—$1 per share. Proceeds—For. swimming

Colorado
June

5

cents)~

filed

June 26 (letter of notification)-11,700 shares of common

pool and related activities, bowling alley* site preparation
including parking, and land cost ($95,000). Underwriters
—Arthur L. Weir & Co., Colorado Springs, Colo.; and

stock

Copley

•

Black

Hills Power &r Light Co.

(par $1)

to be offered for subscription by stock-

&

Co.

-

"

m '

'

'

;

M.N

"

z

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

(305)
•

Commercial Life

Insurance

of

Co.

Missouri

June 21

(letter of notification) 50,000 shares of common
stock being offered initially to stockholders (par $2).
Price—$5.50 per share. Proceeds—To be added to gen¬
funds

eral

and

for

expansion of business.

Pershing Ave., St. Louis, Mo.
Jones & Co., St. Louis, Mo.

Office—5579

Underwriter—Edward D.

Commodity Fund for Capital Growth, Inc.
May 28 (letter of notification) 60,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For trad¬
ing in commodity future contracts. Office — 436 West
20th St., New York 11, N. Y. Underwriter — Arthur N.
Economu Associates, New York, N. Y.
Commodity Holding Corp.
June 6 (letter of notification) 3,000,000 shares of com¬
mon stock
(par five cents). Price—10 cents per share.
.

Proceeds—To trade in commodities. Office—15 Exchange

Place, Jersey City, N. J. Underwriter — Southeastern
Securities Corp., 335 Broadway, New York.

1 Commonwealth, Inc., Portland, Ore.
March 23 (letter of notification) 5,912 shares of 6% cu¬
mulative preferred stock being offered for
subscription
by stockholders of record April 16, 1956 on a pro rata
basis; rights to expire on July 2, 1956. Price—At par ($50
per share).
Proceeds — For working capital. Office—
Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.
Underwriter—None.
Consolidated
June 29
dated

&

Agricultural

Y

Inc.

(letter of notification) 300,000 cf 6% debentures

July 1,1956, maturing $20,000 each

the fifth

after issuance.

year

Proceeds

beginning
working
Fifth St., San¬
year

For

—

capital and construction.
Office—1517
dusky, Ohio. Underwriter—None.
•

Consolidated Water Co., Chicago, III. (7/23-27)
June
18 filed
$330,000 of 5% convertible debentures
due June 1, 1976 and 26,000 shares of class A common
stock

(par $10). Price—Of debentures, 100% of principal
amount; and of stock, $12 per share. Proceeds—For
payment of bank loans and other obligations totaling

$184,000, and for the purchase of securities of company's
Underwriters
The Milwaukee Co., Mil¬

subsidiaries.

—

Diversified

Co.'

surance

,

,,

...

"«>

mon

Proceeds

>*V.V

class

crease

B

stock, JiO cents
capital and surplus.

share.

per

Proceeds—To

July/2 filed

Doctors

Refrigeration

Corp.
of

(7/24)
(par $1).
Proceeds—For

Price—To be supplied
by amendment.
capital expenditures and working capital.

Lake Mining &

Office

Springs, Colo.
Denver, Colo.

East

Underwriter

—

'

—

mining
Rafael, Colorado
Skyline Securities, Inc.,
San

Eastern-Northern

v

(regulation "D") 50,000 shares of common stock
(par $1); Price-i-60 cents per share. Proceeds—For
gen¬
corporate purposes.
Underwriter

■

eral

(letter of notification) 8,000 shares of common
(par $1). Price—$6.25 per share. Proceeds—To sell¬
stockholders.
Office
2201 West

Burbank, Calif.

—

it Edison Bros. Stores^ Inc.
July 11 filed 45,000 shares of common

Underwriter—Neary, Purcell & Co., Los Angeles, Calif.
Dalmid Oil & Uranium,
Inc., Grand Junction, Coto,

Plan

mining expenses. Office—1730 North 7th
Street, Grand Junction, Colo.
Underwriter—Columbia
Securities Co., Denver, Colo.
,Y [
Z Marine

July 23
Allh

(Louis)

•

El

Inc.)

C6.,

Tex.

Y'?:'.:YY Y

(Louis)

Y

>

YYYy

•

YY

,■Y-Y Y Y YYY Y Y'

Baird

Armstrong

&

Co.,

Inc.)

Rubber

Co

(Reynolds

&

(Bids

,

shares

47,729

Inc.)

Debens.

Y

Central

Class A

&

Co.; Harley, Haydon &
Indianapolis Bond & Share Corp.)

(Lepow Securities Corp.)

July 24

x

Co.,

(May

be

Stk.

$642,000

&

(Bids

....Common
shares

125,000

(Smith.

Meadowbrook
(Offering

115,000

New

shares

Bank

•

Higginson

England

(Offering

to

Y

be

Corp.)

underwritten

$2,194,500

to

Y

Corp.)

Gas

be

Co.,

\

Florida Sun Life Insurance Co. Y
March 16 filed 32,000 shares of common stock
(par $1).
per share.
Proceeds—To expand company's
business. Office—Fort
Lauderdale, Flal Underwriter-—
None. Offering will be made
through James C. Dean,
President of company.
y. .
.

Debentures

$30.0CO,000

&

Telegraph

underwriting)

Co.__Cnm.

Food

$61,301,000

June

Bunds
be invited)

Illinois

by'.
'

Bell

(Offering

Telephone

to

Price—To be supplied by amendment.
Proceeds—To repay $15,500,000 of
promissory notes and
for modernization and
expansion of facilities. Under-;

(Friday)

Co

stockholders—no

.Common
underwriting)

writer—Kidder, Peabody & Co., New York.

$58,053,100

;

(Central

(Bids

.

Indiana

September 5
•■

(Wednesday)

Southern California Edison Co
(Bids

Service

to

be

invited)

26

'

JBids

National

Research

(Paine,

$20,000,000

Corp..__

Webber,

Jackson

July 30

&

$6,000,000

State

Securities

Dealers,

(Peter

Morgan

&

July 31

Co.)

New

(Bids

11

(Bids

$1,000,000

Common

$570,000

.

(Bids

,

(Vickers

,

Paso

Natural
(White,

Michigan

11

.Y

.

*

Minerals, Inc.

(Offering

Cement

&

Inc.)

(Bids

(Offering
F.

California
>

-•

to

stockholders—to

Eberstadt

Eastern

&

Co.)

(Bids to

October

Ohio Power

$9,650,000

be

&

Co.)




I

$15,000,000

invited)

1

$2,900,000

Common

about

$575,000,000

(Tuesday)

be

preference

stock

(no

par)

and

59,445

con¬

shares

stock

(par $1) being offered in exchange for
preferred stock and common stock of
Graflex, Inc.
of one-quarter share of General
preference
and one-quarter share of General common
stock in ex¬
in

the ratio

change for each Graflex
share of Graflex preferred
five shares of Graflex

were

on

Aug. 6.

common

stock

share, with each
being treated as if it

common

stock. The offer will

Underwriter—None.

General

Tire & Rubber Co.,
Akron, O.
July 5 filed 134,717 shares of $5 cumulative preference
(par $100) and 134,717 warrants to purchase a like
of

offered in

shares

of

Co.

on

stock

common

common

and

(par $2.50) to be
preferred stock of

the basis of

one

share of General's

exchange for

M. Byers

preference stock and a warrant to purchase one common
share for each 3V3 shares of Byers common stock. The

exchange ratio in respect to the Byers preferred stock is
be supplied by amendment.
The General company
has

—Debentures

invited)

$30,000,000

9

be

invited)

17

!
$8,000,000

(Wednesday)
EDT)

a.m.

828,000,000

a.m.

EDT)

$6,000,000

by

November

13

(Tuesday)

Metropolitan Edison Co
(Bids to be

invited)

are not
met, the company is obligated to purchase
60,000 shares for an aggregate of 18,000 shares of

General's

cumulative preference stock of a series con¬
taining similar terms and provisions to the company's
outstanding $5.50 series A shares.
General
Jan.

Preferred
11

M.

the
Bonds

Bonds
11

also

agreed to purchase from J. F. Byers, Jr., and
Byers a total of 60,000 shares of Byers common
stock for an aggregate
price of $1,800,000. If certain con¬
B.

ditions

(Tuesday)

18

Uranium Corp.

filed

400,000 shares
cents). Price—$1 per share.
ities, survey of property and
Underwriter—None. Maurice
Is President.

(N.~J.), New York
of

common

stock

(par ID

Proceeds—For plant facil¬

underground development.
Schack, Middletown, N.

Statement effective March 11.

Bonds

-

'

Precision Equipment
Corp.
59,445 shares of $1.60 cumulative

filed

common

A.

(Monday)

underwriting)

20

vertible

number

Bonds

$20,000,000

Co

(Bids

shares

..Debentures

General

June

stock

(Tuesday)

Ohio Power Co

Common

underwritten

1,105,545

Aviation, Inc...:

(Cruttenden

to

October

$3,750,000

August 2 (Thursday)
Airways, Inc.___

Co., Inc., New York 6. N. Y.

•

expire
—Bonds

California Electric Power Co

(Bids

Eraniff

—Bonds

$20,000,000

invited)

be

Underwriter—Philip Gordon

&

to

Common

Brothers)

to

stockholders—no

^..Bonds

Corp

(Vickers

to

Common
Otis,

(Wednesday)

October 2

$25,000,000

I

(Gearhart

Bonds

invited)

com¬

5%

$15,000,000

Columbia Gas System, Inc

Co

,

of

$25,000,000

Line

EDT)

be

(Bids to be

Preferred

Co.)

&

Pipe
a.m.

to

October

$300,000

Co..

Weld

Wisconsin
(Bids

Republic

Brothers)

Gas

Co

invited)

be

American Telephone & Telegraph Co

$2,500,000

August 1 (Wednesday)
Devall Land & Marine Construction Co., Inc.__Com.
El

to

shares

Virginia Electric & Power Co
-

;.

(Tuesday)

September 25
Bonds

$10,000,000

Equip. Trust Ctfs.
EDTt

noon

90,000

Northern States Power Co.

York, New Haven & Hartford RR.
(Bids

invited)

General Telephone Co. of California

(Tuesday)
EDT)

a.m.

be

September 12

Jersey Central Power & Light Co
Y

(Bids

—Class A
Inc.)

to

Carolina Power & Light

'

(Monday)

Mica & Minerals Corp. of America-.

>

—Common

September 11

Y Y

.Debentures
Curtis)

Gold Seal Dairy Products Corp
(All

Y

4

stock

.

Gulf States Utilities Co

...Debentures

(Goldman, Sachs & Co.)

Y

v

Jan.
mon

Office—Kemmerer, Wyo.

(Monday)

Gulf States Utilities Co..^.....-—....Bonds
Y .
(Bids to be invited) $13,000,000
Y
Y/
'

(Thursday)

Champion Paper & Fibre Co
A

■

Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of

(par five cents). Price — 25 cents per share.
Proceeds—For expenses incident to
mining operations.

^.....^.....Bonds

$40,000,000

September 10

Co.-.-Preference

Republic Co. Inc.; Blyth & Co., Inc.; and Merrill
Lynch, Pierce, Fenner & Beane) $14,837,760 Y' -//
Y

»July

.

'" Y Y

CDT) $3,645,000

noon

Public

....y;

Gas Hills

(Wednesday)

Missouri-Kansas-Texas RR.____-Equip. Trust Ctfs.
;

Machinery & Chemical Corp. (7/25)
filed $30,000,000 of
sinking fund debentures

28

due July 15, 1981.

$10,000,000

YY

August 31

-:Y •-."-<'*Y

Price—$10

(Wednesday)

stockholders—no

city, of which Wiley S. Killingsworth is Presi¬
.'i•:
'*■ '
'
-.:Y"'."Y '•
■'

same

dent.-

.

Co

invited)

First National Mutual
Fund, Inc.
June 27 filed 50,000 shares of common stock
(par $1), of
which 10,000 shares are to be offered
for sale at $10 per
share to not more than 25
people, whereupon the company will declare itself an open-end investment
company

Corp., San
Francisco, Calif. Underwriter—First National Securities

$8,000,000

(Tuesday)

Office—Lynchburg, Va. Underwriter—Scott, Horner

Mason, Inc., also of Lynchburg.

change the offering price of the remaining
40,000
shares to net asset value
plus a distributing charge. In¬
vestment Adviser—First National Investment

(Tuesday)

Telephone

(Bids to

Food Machinery & Chemical Corp.____Debentures ■■
Y- Y Y
(Kidder, Peabody & Co.) $30,000,000
Y/. Y: Y'Y;

Northern

Underwriter—White,

and

Tampa Electric Co

Common

stockholders—to

Lee

Securities

August 29

Y

—Common

Barney & Co.)

July 25
;.

Yy

$20,000,000

Co

National

to

.

.

CDT)

a.m.

Northrup

A;

.

Preferred

August 28

Bonds
10

Union

Consolidated Natural

Illinois Power Co
Leeds

A

Pacific Telephone & Telegraph Co.-*-JDebentnres
-(Bids 8:30 a.m. PUT,) $78,000,000

and i,'

Inc.;

(Tuesday)

i,Y-'YYYY: (Baker, Simonds & Co.)
(Bids

$40,000,000

(Thursday)

August 21

$300,000

Copeland Refrigeration Corp...

YY

EDT)

a.m.

Illinois Light Co

Popular Plastic Products Corp..__.___^..Common
/

Bonds

11:30

$9,250,000

Milwaukee

(8/1)

it First Colony Life Insurance Co., Inc.
July 12 filed 315,000 shares of common stock (par
$2.25).
Price—$12.50 per share. Proceeds—For working
capital,

■"

(Tuesday)

August 16

by Robert W.

—Debentures

Co.,

Consolidated Water Co
(The

14

Consumers Power Co

$3,000,000

unuerwritten

be

Co.

shares

it Federated Plans, Inc., Worcester, Mass.
July 12 filed (by amendment) an additional
$20,000,000
Systematic Investment Plans.

.Common

./(Offering to stockholders—to

Gas

250,000

Weld & Co., New York.

&

August

Co

Natural

filed

of cumulative
preferred
(par $100). Price—To be supplied by amendment.
Proceeds—To reduce bank loans.

Construction

CALENDAR

.

Allis

and its

stock

Co., Inc.
(8/D
16 (letter of notification) 150,000 shares of com¬
mon stock (par
$1). Price—$2 per share. Proceeds—For
payments of notes, to purchase and equip three boats
and working capital. Office—1111 No. First
Ave., Lake
Charles, La. Underwriter—Vickers Brothers, Houston.

Debentures
&

3

company

~

May

(Monday)

Baird

W.

Paso

July

Y. '

ISSUE

Co1.

(Robert

of the

subsidiaries.

Proceeds—For

&

stock (par $1) to
Restricted Stock Option

be offered under the
company's
for sale to key employees

April 16 (letter of notification) 2,700,000 shares of com¬
mon
stock
(par one cent). Price—10 cents per share

Land

Foster-Mann,

—

Inc., New York.

etc.

NEW

Explorations, Ltd.,

Toronto, Canada

28

Devall

Corp.,

stock

mon

stock

•

Oil

filed

June 4

★ Crestmont Oil Co.
June

16,

Under¬

Fort Collins, Colo.
notification) 2,997,800 shares of com¬
(par one cent). Price — 10 cents per share.
Proceeds—For mining expenses. Office—155 North Col¬
lege Ave., Fort Collins, Colo. Underwriter
Columbia
Securities Co., Denver 2, Colo. '

Y

Y

Milling Co., Inc.

1902

—

Suite

March 26 (letter of

March 8 (letter of notification)
575,000 shares of common
stock. Price—50 cents per share. Proceeds—For
expenses.

23

Douglas

Underwriter

•—Baker, Simonds & Co., Detroit, Mich.
Crater

—

—

stock

common

Office

expenses.

Corp., Carrollton, Tex.
500,000 shares of common stock (par 10
cents). Price — $1 per share. Proceeds — For
working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter
James C.
McKeever & Associates, Oklahoma
City, Okla.
Feb.

in¬

Office—Alexandria, La. Un¬

125,000 shares

mining

Bldg., - Grand * J unction,. ColoVi
writer—Columbia Securities Co., Denver, Colo.

derwriter—None.

Copeiand

For

—

Urartiifirr Center

Continental Equity Securities
Corp.
March 28 filed 40,000 shares of class A
common stock
(par $5) and 80,000 shares of class B common stock
(par
50 cents). Price—Of class A
stock, $12.50 per share, and

of

Resources, Inc.
(letter of notification) 6,000,000 shares of 'coto- ;
stock (par one cent). Price—Five cents
per share.

July 5

Debentures reported sold to Massachusetts Life In¬

ing

Industrial

Chemicals,

waukee, Wis.; Harley, Haydon & Co., Inc., Madison,
Wis.; and Indianapolis Bond & Share Corp., Indianapolis.
Ind.

33

$10,000,000

Continued

on

page

34

34

Th&Commercial and Financial Chronicle... Thursday, July
19, 195G

(306)

Continued from page

Golden Dawn Uranium

.

Corp., Buena

Vista,.Colo.

of notification) 3,000,000 shares of capital
(par five cents). Price-*—10 cents, per share. Pro-

eeeds

Underwriter

For mining expenses.

—

Securities Co., Provo, Utah.

Bel-Air

—

\

Corp. (7/30-8/1)
of class A stock (par 10

Gold Seal Dairy Products

filed 2uO,jOO shares

June 22

Price—$5 per share. Proceeds—For expansion
outstanding obligations. Office—Remsen,

cents).
and

to

repay

Underwriter—All States Securities Dealers,
New York.
;
'•
:yy:

N. Y.

Inc.,
;y/':

Houston, Texas
;
notification) 3,270 shares of class B stock
(no par), of which 1,000 shares are to be offered pro
rata to the holders of class A stock and 2,270 shares are
offered to employees of the company. Price — $o0 per
share. Proceeds—For working capital. Office—6102 Harrisburg Blvd., Houston, Tex. Underwriter—None.
Gray Tool Co.,

May 3 (letter of

^ Greenbluff Uranium Co., Inc., Rockford, Wash.
JUrie 29 (letter of notification) an undetermined number
of shares of common stock.
Proceeds—For mining ex¬

Underwriter—None.

penses.

*

Growers Container Corp.,

.

Salinas, Calif.

May 28 filed 600,000 shares of common stock (par $1)
to be offered primarily to individuals and firms who

engaged

are

in

closely allied to the growing and
Price—$3 per share. Proceeds—For
capital expenditures and other corpo¬

or

shipping industry.
working capital,

Co. /
Dec. 30 (letter of notification) .24,000 shares of capital
itock (par $5) to be offered first to stockholders; then
policyholders and the public, Price—$10 per share. Proeeeds—For working capital. Address—P. O. Box 2231,
Guaranty Income Lite insurance

(R. F.)

Gunkelman

...

Underwriter—None.

Baton Rouge, La.

& Sons, Fargo, N. D.

-^HamiltonFunds,

Inc., Denver, Colo.
shares of Series
H-DA; also $50,000,Fund Periodic Investment Certificates.-

July 11 filed (by amendment) 2,000,000
H-C7 and 2,000,000 shares of Series

Hamilton

Proceeds—For investment.

.y.\y.:yyy'

jr Handy & Harman
June 25 (letter of notification) 7,400 shares of common
stock (par $1). Price—$6.75 per share* Proceeds—For
general corporate purposes. Office—82 Fulton St., New
York 38, N. Y. Underwriter—None.
Hard Rock Mining Co.,

Pittsburgh, Pa.
Feb. 20 (letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment and

377 McKee Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.

fojr working capital, .Office

—

it Haydock Fund, Inc., Cincinnati, O.
July 11 filed (by amendment) 50,000 shares of capital
stock (no par).
Price—At market. Proceeds—For in¬
vestment.

■■v-.1.

;

Hidden Dome Exploration Co.,

Inc.
May 15 (letter of notification) 3,000,000 shares of capital
stock. Price—At par (10 cents per share). Proceeds—
For the development of oil and gas properties. Office—
219 E. Fremont Ave., Las Vegas, Nev.
Underwriter—
National Securities Co., Las Vegas, Nev.
Hill & Hill
March

13

1958 Oil Exploration

Capital Fund

filed

$450,000 of participations in this Fund
public sale in minimum units of $15,000.
Proceeds—For payment of various property and explor¬
atory well costs arid expenses. Business—George P. Hill

to be offered for

and

Houston Hill

engaged in exploration for and
production of oil and gas as a joint venture. ^OfficeFort Worth, Tex. Underwriters — William D. McCabe
and E. S. Emerson, South Texas Bldg., San Antonio, Tex.
are

Hiskey Uranium Corp.
May 31 filed 500,000 shares of common stock (par 30
cents). Price—$1 per share. Proceeds—For drilling ex¬
purchase of properties and working capital. Of¬
fices—Las Vegas, Nev., and Salt Lake City, Utah. Underwriter—Ackerson-Hackett Investment Co., Reno, Nev.
penses,

Holden Mining Co., Winterhaven, Calif.
April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B.
Hogan, Inc., Hollywood,

Calif.

Hometrust Corp., Inc.,
Montgomery, Ala.
Jan. 5 filed 125,000 shares of common stock
(par $1).
Price—$5 per share. Proceeds—- To expand operations
of subsidiary and increase investment thereiru Under¬

writer—None.
Idaho-AIta Metals Corp.

JJarch 7 (letter of notification) 120,000 shares of com¬
mon stock
(par 10 cents). Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter— Fenner Corp. (formerly Fenner-Streitman
$ Co.), New York.

Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec. 16
ctock

Price —$2

per

share.

Proceeds

—

For

equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles. Calif.
Illinois Power Co.

(7/24)

Northrup Co., Philadelphia, Pa. (7/24) :
115,000 shares of common stocx (par 00
cents), of which 100,000 shares are to be offered to the i
public and 15,000 shares to employees. Price—To be sup- :

Utah

plied

filed

by amendment.

Proceeds—To

reduce

shore term

.

t

subscription privilege); rights to expire in 20 days. Price ★ Leetronics, Inc. i y/.;^ ^..yh.^^ ;v--:y"^/"O'V;
:—$1.70 per share. Proceeds—For construction of an ab¬
July 3 (letter of notification) up to 25,^00 shares of com- *
sorption type gasoline plant. Office—11950 San Vinmon stock
(par 50 cents) to be issued upon exercise of 4
cente Blvd., Suite 207, Los Angeles 49, Calif.
Under- $ stock option warrants.
Price—$4 per share. Proceeds— ;
writer—Bennett & Co., Hollywood 28, Calif.
For general corporate purposes.
Office *— 30 Main St., ;
Brooklyn 1, N. Y. Underwriter—S. D. Fuller & Co., New
it Institutional Income Fund, Inc., New York
York.
•
,
•
>
- "
•
v
July 16 filed (by amendment) 800,000 shares of common ,
stock. Price—At market. Proceeds—For investment.
Lester Engineering Co., Cleveland, Ohio- ;
.y?
Feb. 24 (letter of notification) 37,500 shares of common
Insulated Circuits, Inc., Belleville, N. J.
stock (par $1) to be offered for subscription by common
Nov. 10 filed 100,000 shares of 6% convertible preferred :
stockholders- of record March I, 1956 ©n the basis of one -T
stock (cumulative if and to the extent earned). Price—
new share for each 4% shares held. Of the unsubscribed.
At par ($5 per share). Proceeds—For general corporate
portion, up to 7,500 shares are to be offered, to em- •
purposes. Underwriter—Alexander Watt & Co., Inc., na*
plovees.
price—S8 per share.
withdrawn as underwriter; new one to be named.
Proceeds — For general !
.

.

•

Insurance

City Life Co., Hartford, Conn.

corporate
-

Office—2711
Underwriter—None."

purposes.

land, Ohio.

(letter of notification) 15,805 shares of capital
stock (par $10) being offered for subscription by stock¬
holders of record June 8, 1956 on the basis of one new'
share for each share held; rights to expire on Aug. 3. '
Price—$16 per share. Proceeds—For capital stock and

Church

.

^

Ave., Cieye->
yyv.yy ■>yy»

28

June

Basic

international

Metals,

it. Levi iz Credit Corp.
(letter of notification)

June 29
nated

$250,000 of 6% subordi¬

debentures, series A, due July 1, 1963, and 2,500 '

shares of class A stock

to be offered in units
consisting of $100 of debentures and one share of class A
stock.
1 rice—$100 per unit.
Proceeds—For working
capital.
Office—618 Cumberland St., Lebanon, Pa. Un-

•

Inc.

(par $5)

.

.

derwriter—None.
.y
y,y. ;.yy
(letter of notification), 1,000,000 shares of com- Lewisohn Copper Corp.
(par 10 cents). Price — 25 cents per share
Proceeds—For mining expenses. Office—155 West South ^ March 30 filed 100,000 shares of common stock
(par 10
Temple St., Salt Lake City, Utah. Underwriter—Mel vie
cents). Price—To be supplied by amendment. Proceeds
G. Flegal & Co., Salt Lake City, Utah
—For exploration and evaluation of leasehold properties,
Jan.

27

mon

stock

International

Plastic

Industries

improvements,

Corp.

(letter of notification) 150,000 shares of commoi
(par 10 cents). Price—$2 per share
Prooeeds-

stock

For advances

ment, etc.
N.

to

Arliss

Office

—

F. Breen, New York.

Co., Inc. for purchase of equip
Co..

&

\v\v

general

corporate

Underwriter—George
Offering—Postponed... - -yy: yyy:;:
~

Developments, Inc., Cleveland, Ohio filed 600,000 shares of common stock (par 10
of which 600,000 shares are to be sold for ac¬
count of the company and 90,000 snares for
selling stock¬
holders.
Price—$1 per share, by amendment. Proceeds
—For exploration and development and other general
corporate purposes.
Underwriter—George A. Searight,
June

New York.

21

cents),

Investment Life & Trust Co., Mullins, S. C.
July 9 filed 1,800,000 shares of common stock (par $1),
of which 1,200,000 shares are to be offered publicity
and

for

and

Lithium

369-375 DeKalb Ave., Brooklyn i

Underwriter—Kamen

Y.

equipment

Of fire—Tucson

purnoses.

Oct. 12

600*000 shares on exercise of options. Price—$2 per
Proceeds—To be added to general op¬

share to public.

New York

City.

erating funds to enable the company to maintain proper
insurance

reserves

required by law. Underwriter—None.

Isthmus Steamship & Salvage Co., Inc. yyyy^yy
May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—For
working capital and for purchase of a ship and equip¬
ment.
Office—1214 Ainsley Bldg., Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y. ;

Israel-Mediterranean Petroleum, Inc. (Panama I.¬
May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which
1,000,000 certificates are to be offered for public sale,
180,000 shares and >certificates therefor are subject to
options and 250,000 shares and certificates therefor are
to be. offered for sale outside of the United States.

—To

be the

Eone Star Fund, Dallas, Texas ^\yvy:y
June 1 filed 125,000 shares of Balanced Income Series;
125,000 shares of Insurance Growth Series; and 125,000
shares

of

Proceeds

Industrial
—

For

Management Co.,

Growth

Price

,

Dallas, Texas..::

market.

States

All

yy yy, y;yy,V;',

ry

(par $100).

Los Angeles Airways,
Inc., Los Angeles, Calif,
April 23 (letter of notification) 645 shares of common
stock (par $10). Price — $54 per share. Proceeds
To

Clarence M. Belinn. the selling stockholder. Office—5901
West Imperial Highway, Los Angeles 49, Calif. Under¬
writer—Dean Witter & Co., Los Angeles, Calif.
,
.

/

Lost

Oct.

6

Canyon Uranium & Oil Co.

(letter of notification)

assessable capital stock

Proceeds

per

bank loans and for construction

program. Underwriter—To be determined by competi- '
tive bidding.
Probable bidders: Halsey, Stuart &

Co.,
Inc.; Lehman Brothers;. White, Weld & Co.; Kidder,
Peabody & Co.; Union Securities Corp., Salomon Bros.

■'

—

Proceeds—To repay bank loans.

Jersey Central Power & Light Co. (7/31)
July 2 filed $10,000,000 first mortgage bonds due 1986.
To repay

Price—At

Underwriter

Price—To be supplied by amend¬
Underwriters—
Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. ; Offering — Postponed
because of present unsatisfactory market, conditions.
ment.

price on the American Stock Ex- /
change. Proceeds — For carrying out the exploratory
drilling and development of presently licensed acreage,
operations and expenses of the company, and acquisition,
exploration and development of additional acreage. Un¬
derwriter—H. Kook & Co., Inc., New York.
; v
\y

—

Series.

investment.

Long Island Lighting Co. ':'/}y: y^y'/; .r;y;y:yyApril 5 filed 120,000 shares of cumulative preferred stock,
series G

market

share.

.

-y

3,000,000- shares

of

non¬

(par one cent). Price—10 cepta
Proceeds—For expenses incident to mining

City, Utah.

Lumberman's

<

,

Investment & Mortgage Co*

-

•

>

Hutzler and Merrill Lynch, Pierce, Fenner & Beane
(jointly); Blair & Co. Incorporated. Bids—Expected to

May 2 filed 50,000 shares of common ^stock (par $10).
Price—$12 per share. Proceeds—For working capital and

be

general corporate purposes.
Underwriter—None.

received

offices

up to 11 a.m. (EDT) on July 31 at
of General Public Utilities Corp., 67 Broad

the
St.,

New York, N. Y.

Office

—Denver, -Colo.
j

.

Mammoth

★ Johnston (Robert A.) Co.
July 2 (letter of notification) 5,000 shares of common
stock (no par) to be offered to employees. Price;—$9 per
share.
Proceeds —For working capital.
Office —4023
W. National Ave., Milwaukee, Wis. Underwriter—None.
Jurassic Minerals, Inc., Cortez,-Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cerits
per share.
Proceeds—For expenses incident to mining
activities. Office
326 West Montezuma St., Cortez,
Colo, Underwriter — Bay Securities Corp., New York,
—

New York.

Corp., Thomson, Ga.

June

20 filed 150,000 shares of class A common stock
(par $1). Price—To be supplied by amendment (expect¬
ed at $4 per share). Proceeds—To pay loans from banks
and factors; and for working capital and other
corporate
purposes. Business—Prefabricated homes, house trailers
and lumber. Underwriter—Ira

Haupt & Co., New York.

Kropp Forge Co.
June 4 (letter-of notification) 18,804 shares of

Under writer—T o be determined by
competitive bidding.

stock

(par 33% cents). Price—At market

common-

(estimated at

.

*y:/y

operations. Office — Simms Bldg.. Albuquerque SlyM
Underwriter—Mid-America Securities Inc. of Utah, Salt
Lake

~

&

June 27 filed $20,000,000 first
mortgage bonds due 1986.
Proceeds—To repay bank loans and for new construction.




Leeds &

June 28

Proceeds—For

bank loans and for general corporate purposes.
Under¬
Inglewood Gasoline Co.
May 18 (letter of notification) 175,725.9 shares of capita) ' : writer — Smith, Barney & Co., New York. Meeting—
Stockholders on July 23 will vote on the proposed twostock (par 50 cents) being first offered to stockholders
for-one split of the present $1 par
of record June 30 on a 1%-for-l basis (with an over-snares.yy

Knox

(letter of notification) 150,000 shares of capital

(par $1).

1

development and working capital. Office—Moab,
Underwriter—I. J. Schenin Co., New York.
;

stockholder.

Lawyers Mortgage & Title Co.
~
May 11 (letter of notification) 133,000 shares of com¬
mon stock (par 65 cents).
Price—$1.50 per share. Pro¬
ceeds—For working capital. Office—115 Broadway, New "
York 6, N. Y. Underwriter—None,

shares of com¬

Office—750 Main St., Hartford, Conn. Underwriter—Putnam & Co., Hartford, Conn.

May 25 (letter of notification) 1,800 shares of 5% cumu¬
stock (par $100). Price—$98 per share.
Proceeds — For expenses incident to commercial grain
business. Underwriter—W. R. Olson Co., Fargo, N. D.

Price—At market.

Development Corp.

Minerals

surplus.

lative preferred

000

Industrial

March 7 (letter of notification) 1,000,000
mon stock.
Price—Five cents per share.

Underwriter—None.

rate purposes.

$3.50 per share). Proceeds — To selling
Underwriter—Sincere & Co., Chicago, 111.

Boston

.

Dec. 27 (letter
•tOck

Co. Inc.; The First
Corp.; White, Weld & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Harrimah, Ripley &
Co. Inc. and Glore, Forgan & Co. (jointly); Union Se¬
curities Corp.
Bids — Expected to be received up to
10 a.m. (CDT) on July 24 at Room 1567, No. 231 So.
La Salle St., Chicago 4, 111.
'
Probable bidders: Halsey/ Stuart &

33

Milling & Uranium Co., Inc.. '
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per. share).
Proceeds—
For mining expenses.
Office—205 Carlson 'Bldg., Pocatellb, Idaho. Underwriter—Columbia Securities Co., Inc.
of California, Beverly Hills, Calif.
it Markwood Industries, Inc.

.

.

July 28 (letter of notification) 280,000 shares of Class A
common stock (par 10 cents).
Price—$1 per-share. Pro¬
ceeds—For purchase of property and construction of two

buildings; machinery and equipment; and working
ital; and

cap¬

general

corporate purposes. Business—Humus
and potted soil. Office—45 Commerce
St., Newark, N, J.
Underwriter—Daggett Securities^Inc., Newark, N. J."

Marquardt Aircraft Co., Van Nuys, Calif.
June 25 filed 42,000 shares of capital stock (par $l)~ to
be offered for subscription by stockholders .of record
about July 18 on^a pro rata basis; rights to
expire on or
about Aug. 7. Price—To be supplied by amendment. Pro¬
ceeds—From sale of stock, together With -funds from

private placement^of $2,000,000 of first mortgage 5%%
bonds, for capital improvement, equipment and general
corporate purposes. Underwriter—None. Unsubscribed

Number 5552

Volume 184

...

The Commercial and Financial Chronicle

B stockholders of- record Feb.

shares will be bought by Olin Mathiesen Chemical Corp.,
Laurence

ana

holders.
Mica

June

" v ,.V\\ ;

'

Minerals

&

filed

13

1, 1956 on a l-for-4 basis.
Price—$2 per share. Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C.
Underwriter—

rockefeller,- the two principal stock¬

b.

'

''

**:

of America' (7/30)
common stock (par 10

Corp.

None.

570,000 shares of

Price—$1 per share. Proceeds—To repayment of
loans, to exercise option to purchase property now under
lease, for construction of a plants and for further explo¬
ration, working capital and other general corporate pur¬
poses,
Office—Wilmington, Del. Underwriter — Peter
Morgan & Co., New York.
"
W.-

•

Midland General

12

filed

24,120

.

Underwriter

■

(par

„

'

Mission Appliance

^

V?

Corp. of Mississippi

(par $20) and 29,900 shares of common

$5) to be offered in units of one
mon shares.: Price—$40 per unit.

Proceeds

For

—

pur-

machinery and equipment. Office—New Albany;
Underwriter—Lewis & Co., Jackson, Miss.

chase of

Miss.

insurance

•

March
u

23/

cumulative

activation of

Underwriter—Arizona Mutual
Phoenix, Ariz.
I;-;' '■;?/

Ohio
3,000 shares of

(letter of notification)
convertible preferred stock

$50)

(par

8%
and

$60 per unit.
Proceeds — For mining expenses
silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio.; Underwriter—None.
—

and processing

it "Montecatini" Societa Generate
Mmeraria e Chimica, Italy
*

per

•

16

I'lndustria

.••W

VV-V:/'/vV-

Mining Corp., Salt Lake City, Utah

Feb. 9

(letter of notification) 3,000,000 shares of capital
stock (par one cent). Price—10 cents per share.
Pro¬
ceeds—For mining expenses. Office—223 Phillips Petrol'

Eldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
,:.

eum

stock

(letter

notification).!,000 shares of

common

(estimated at $18.50
Proceeds—To selling stockholder. Under¬
Co., Inc., Minneapolis, Minn.

writer—J. M. Dain &
•

June
stock

19

By-Products, Inc.
v
f
'
(letter of notification) 2,000 shares of common
.

(par $1).

Federal

estate

Price—$5 per share.
taxes.

Proceeds;—To

Office—800 Bankers Trust

pay

Bldg.,

Moines, Iowa. Underwriter—T. C. Henderson & Co.,
Inc., Des Moines, Iowa.
Des

.

National

Consolidated Mining Corp.

87,000 shares of common
Price—$3 per share. Proceeds—
Address — Salida, Colo. Under¬

May 9 (letter of notification)
stock
For

(par one cent).
mining expenses.

writer—Pummill Enterprises, Houston, Tex.
National

Lithium

Corp., Denver, Colo.

Pec. 27 (letter of notification) 300,000 shares of common

Price—$1 per share. Proceeds—
For mining expenses. Office — 556 Denver Club Bldg.,
Denver, Colo. Underwriter — Investment Service Co.,
stock

same

(par one cent).

city.

National

•;

" ;"

Finance

Corp.

(letter of notification) 24,000 shares of Class A
(par $1) and 40,000 shares of Class B stock (par

March 5
stock

$1) to be offered for subscription by Class A and Class




for each

shares

11

or

common

portion

stock

thereof of Western

held; (with

Rea (J. B.) Co., Inc., Santa Monica, Calif.
May 29 (letter of notification) 50,.000 shares of common
stock (par $5) per share. Price—$6 per share. Proceeds
—For inventory and working capital. Office—1723 Cloverfield Blvd., Santa Monica, Calif. Underwriter—Shearson, Hammill & Co., Beverly Hills. Calif.

^ Realty Interests, Inc.
July 10 (letter of notification) 2,890 shares of 5,/£%
cumulative preferred stock (par $100) and 10,390 shares
of common stock (par $1) to be offered in units of 10
shares of preferred stock and 10 shares of common stock.

(7/25)

filed

Price—$1,010 per unit. Proceeds — For working capital
and general corporate purposes. Office—86 Lincoln
Ave.,
Pelham, N. Y. Underwriter—None.

—

.

Reinsurance

Investment

Corp., Birmingham, Ala«

May 25 filed 2,985,000 shares of common stock, of which
2,485,000 shares are to be offered to public and 500,000
are to be reserved on exercise of options to be
granted to employees of company. Price—To public, $2
per share. Proceeds—The first $3,000,000 will be used to
purchase or organize a legal reserve life insurance com¬
pany to be known as the "Reinsurance Company of the
South"; the remainder will be used for other corporate
purposes. Underwriter—Luna, Matthews & Waites.

Mineral & Oil Corp., Farmington, N. M.
(letter of notification) 2,000,000 sharespof common
stock (par five cents). Price—15 cents per share. Pro¬
Oak

Nov. 8

Co., New

Underwriter—PJiilip Gordon A

York. / V 'j:

>•

Pacific Finance Corp.

(Calif.

)

Reno

Hacienda, Inc., Inglewood, Calif.
4,000,000 shares of common stock. Price—
At par ($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facfiitiefl
and for general corporate purposes. Underwriter—Wilion & Bayley Investment Co..

April 10 filed $25,000,000 of debentures due 1971. Price
Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—-Blyth &

Dec.

—To be supplied by amendment.

Co., Inc., and Hornblower & Weeks.
nitely postponed,
r •>'

Offering—Indefi¬
•'

Co.
;
June 7 filed 341,550 shares of common stock (par $6.50)
being offered for subscription by common stockholders
of record July 11, 1956 at the rate of one additional share
for each 10 shares then held; rights to expire on Aug. 2,
1956.
Price—$27 per share.
Proceeds—For construc¬
tion program.
Underwriters—Lehman Brothers, Union
Securities Corp., Bear, Stearns & Co. and Dean Witter
& Co. (jointly).
Inc.

(Panama)

be offered for sale outside of the United States.

Price—

price on the American Stock Exchange.
Proceeds—For exploration, drilling apd development of
oil and gas acreage in Israel. Underwriter—H. Kook &

f Republic Cement Corp.'v Prescott, Ariz. (8/1)
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York.

it Research Mining & Development, Inc.
July 2 (letter of notification) 1,375,000 shares of com¬
mon stock
(par 10 cents). Price — 20 cents per share.
Proceeds—For mining expenses.
Office—982 Meadow
Ross

Industries, Inc., St. Petersburg, Fla.
Feb. 16 (letter of notification) 8,000 shares of class A
common stock
(par $1). Price—At the market (maxi¬
mum $6).
Proceeds—For working capital. Office—34th

Ave., North, St. Petersburg, Fla. Underwriter
—Eisele & King, Libaire, Stout & C&, New York.

Supplies, Inc.
(letter of notification) 10,000 shares of common
stock (par $10). Price—$26.75 per share. Proceeds—For
land; siding; building; inventory, et al. Office—227 Pen¬
dleton St., Greenville, S. C.
Underwriters—Alester G.
Furman
Co., Inc., Edgar M. Norris, H. T. Mills and
Vivian M. Manning, all of Greenville, S. C.; and Klugh
& Co., Inc. of Anderson, S. C.
Corp.
common stock (par $1)
being offered for subscription by common stockholders
of record July 12 on the basis of one new share for
20

filed

each four shares held;

rights to expire on July 23. Price
Proceeds—To discharge certain obliga¬
Office—Hous¬
Underwriter—White, Weld & Co., New York.

tions and for general corporate purposes.

ton, Tex.

stock

to

basis

of 0.6158

Securities Corp., New

to

Prestole

300,910 shares of

—$15 per share.

(7/23),
150,000 shares of Class A
stock (par 10 cents).
Price—$2 per share. Proceeds—
For working capital and
general corporate purposes.
Office—East Northport, L. I., N. Y. Underwriter—Lepow

York.

Petroleum

San Jacinto

June

Popular Plastic Products Corp.

July 9 |(letter of notification)

Underwriter—None.

Builders

June 29

•

Pinellas

•

>

19 filed

St., Reno, Nev.

To be the market

Schwartz Carbonic

Feb. 27

Co., El Paso, Texas
(letter of notification) 30,700 shares of common
be offered for subscription by stockholders on

Price—$7.50

share for each

new

per

share.

★ Searle

sinking fund debentures due July 1, 1971 to be issued
in denominations of $20 or any multiple thereof.
Price

July 6 (letter of notification)

term

and

note

accrued

and

to

interest.

buy

Proceeds—To

equipment.

pay

Office—1345

short
Miami

St., Toledo, Ohio. Underwriter—Baker, Simonds & Co.,
Detroit, Mich.
Federal

Uranium

Corp.

Office—

stock (par two cents).

Price—Five cents

Proceeds—For mining expenses.

Securities, Inc., Denver 2, Colo.

(G. D.)

of shares of

ployees.

common

Proceeds

Address—P.

& Co.

O.

stock

—

Box

For

an

undetermined number

(par $2) to be offered to
general

corporate

5110, Chicago 80, 111.

em¬

purposes.

Underwriter

—None.

ir Sears, Roebuck & Co.
July 16 filed 15,000 memberships in the company's Sav¬

March 21 (letter of notification) 6,000,000 shares of com¬
mon

share held.

manufacturing and sales of carbon dioxide.

July 3 (letter of notification) $300,000 of 6% convertible

—100%

common

Proceeds—For expenses incident

1600 East Eleventh St., El Paso, Tex. Underwriter—None.

Corp.

Prudential

Metallizing

■

Metals

The remainder will be used to pay for explo¬
ration, acquisition and development of mining and mill¬
ing properties and for working capital. Unuerwriter—
White, Weld & Co., New York.
;
■

St. & 22nd

National

Rare

Western.

Kingston, Pa

Co., Inc., New York.

,»

(par $10). Price—At market

share).

per

ot

High St., Newark, N. J. Underwriter

outstanding 4% short-term notes and the then outstand¬
ing 31/2% and 3%% subordinated notes of El Paso and

1,000,000 certificates are to be offered for public sale,
180,000 shares and certificates therefor are subject to
options and 25,000 shares and certificates therefor are to

7

775

—$5

370,894 shares of cumulative preference
stock (convertible through Dec. 1, 1966—par value $40
per share) to be offered for subscription by common
stockholders of record July 13 on the basis of one pre¬
ferred share for each 10 common shares held; rights to
expire Aug. 8. 'Price—To be supplied by amendment.
Proceeds
To repay bank loans and for construction
program. Underwriters—Central Republic Co. Inc., Chi¬
cago, 111.; and Blyth & Co., Inc. and Merrill Lynch,
Pierce, Fenner & Beane, both of New Yo^k.
10

par

an oversub¬
scription privilege); rights will expire on Aug. 1. Price
per share.
Proceeds—$1,250,000 to be used to pay

'pi;

A. E. Nicholson Jr. of

American

North

—

Natural Gas Co.

filed

Pan-Israel Oil Co.,

Nash Finch Co.

i

.

5,000 shares of Class B
($10 per share). Proceeds—For
Business—To develop new type tooth¬

At

—

Office

stock

Underwriter—Birken-

New York.

June

-

..

of El Paso Natural Gas Co. and Western Natural Gas
Co. of record July 16 on the basis of one share of Rare
Metals stock for each five shares or portion thereof of
El Paso common stock and one share of Rare Metals

'

Mormon Trail

•

Corp. of America
/
June 15 filed 1,425,000 shares of capital stock (par $1)
being offered for subscription by common stockholders

?'

Curtis, Boston, Mass., and New York, N. Y.

Price

brush.

May 29 filed American voting trust certificates for 1,430,000 shares of common stock (par one cent), of which

.

■

—None.

July 12 filed 253,000 American depositary receipts for
capital stock through J. P. Morgan & Co., Incorporated,
.

•

working capital.

—

Pacific Power & Light

3,000 shares of common stock (no par) to be offered in
units of one share of preferred and one share of common,
price

stock.

accrued

NRC Metals

St.,

July

.

Silica Co., Cincinnati,.

Mohawk

and

eral corporate purposes.

company.

Benefit Insurance Co.,

100%

ceeds—For exploration and development and other gen¬

May 24 (letter of notification) $300,000 of trust fund cer¬
Price—At par ($2- per unit). Proceeds
To

provide capital and surplus funds for the

—

*■;

tificates^

this

Proceeds

Price

-

Pioneers' Life Insurance Co.,.\/;>-

Modern

-

'

shares

preferred
stock (par
preferred and four com- \

April 23 (letter of notification) 7,475 shares of
stock

July 1, 1976.

Northern Indiana Public Service Co.
.

.

.

due

Co., Phoenix, Ariz.
July 9 filed 500,000 shares of class B non-voting common
stock (par $1).
Price—$3 per share. Proceeds—To ex¬
pand business operations. Underwriter—None, sales are
to be made by Eugene M. Rosenson, President, of Pheonix, and Marcus T. Baumann, Vice-President and Treas¬
urer, of Tucson, Ariz,
V
r

* Minnesota Mining & Development Co.
^ '
June 28 (letter of -notification) 25,000 shares of capital
stock. Price—At par ($1 per share)..Proceeds—For min¬
ing expenses. Address—7721 Marie Ave., LaMesa, Calif.
.

Colo.

★ Ramonelli Products, Inc.
July 12 (letter of notification)

(7/26)

is President

Gearhart & Otis, Inc., New
/i/ ""V;'■%: ///

Underwriter—None.

$42,500.
mining expenses. Office—Bryant Bldg.,
Montrose, Colo. Underwriter—Shaiman & Co., Denver,

Proceeds—For

$4,000,000 of convertible subordinated de¬

Underwriter—None.

—

/^;, /.

Pro-

(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5)
Price—$25 per share. Proceeds — For working capital

Price—$1.50 per share. Proceeds—To acquire
for $2,400,000 the Chavin .lead-zinc-copper-silver mine
located in South Central Peru, and for general corporate

.

amendment.

by

/ Nicholson

Jan.

cent).

■

Research Corp.

Salt Lake City, Utah.
mayer & Co., Denver, Colo.

*

York.

supplied

—

State

* MiEgo Electronic Corp.
//'';K:rr
June 28 (letter of notification) 35,000 shares of common
stock (par $1), to be offered to employees under a stock
option plan at 10% less than market price at time of
employment or to be offered at market price at time of
option agreement; Office—7601 N. W. 37 Ave., Miami,

purposes.

be

Niagara Uranium Corp., Salt Lake City, Utah
?
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3% cents).. Price—10 cents per share.
Proceeds
For mining expenses.
Office — 345 South

—

stock

&

son

$100 per share. Proceeds — For construction,
working capital,, reserve, etc. Underwriter—None.

one

Price—To

Inc., Montrose, Colo.

June 14 (letter of notification) an undetermined number
of shares of common
stock which when sold at the
market will bring in an aggregate amount of

$3,000,000 in payments of capital
Corp., a wholly-owned subsidiary;
for advances to said subsidiary and for general corporate
purposes.
Business—Scientific research and the com¬
mercial development of the results obtained.
Office—
Cambridge, Mass. Underwriter—Paine, Webber, Jack¬

30,000 shares of $6 dividend preferred stock (no
par).-The company does not intend presently to sell
more stock than is required to raise, at most, $2,700,000

1

stock

filed

stock of

.

Minerals, inc., New York (8/1)
June 22 filed 2,500,000 shares of common

stock

common

interest.

Hospital, Inc., Bronx, N. Y.
shares of common stock (no par)

Fla. '• Underwriter—None.

common

B

bentures

,

and

Price

A

class

National

Junev21

2, Color Underwriter—General Investing Corp., New

Jan.

class

of

4V:»

/-V;.;

,

of

shares

selling stockholders, i Office — Little Bock,
Underwriter—Equitable Securities Corp., Nashville, Tenn., and New York, N. Y. Offering—Indefinitely

May 31 (letter of notification) 100,000 shares of common
stock (par one cent). Price—50 cents per snare. Proceeds
—For mining expenses. Office—728 Symes Bldg., Deri- '
"

shares

50,000

Ark.

„

York, N. Y.

Radium Hill Uranium,

50,600

and

Nev.

St., Reno, NfT.
Underwriter—Utility Investments, Inc., Reno, Ney.

To

—

Minerals, Inc., Reno,

oostponed.

competitive bidding. Probable bidders:;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Harriman
Ripiey & Co. Inc.; Biyth ■& Co., Inc. -Bids—Ex- v
pected to be received up to 11 a.m. (EDT) on Aug. 1 at
165 Broadway, New York 6, N.
Y.;;,-

ver

<

Insurance Co.

filed

$2).

seeds

r

by

Corp.

15

$2)

~,par
*

u

Uranium

Nov.

(par

and JP*.

Feb. 14 (letter of notification) 500,000 shares of
commpn
Price—At par (10 cents ner share).
Proceeds—»
For mining expenses.
Office—573 Mill

-

Michigan Wisconsin Pipe Line Co. (8/1)
July 2 fnfcd $25,000,000 of first mortgage pipe line bonds }
due 1976/ Proceeds—To pay off short term, bank loansand for construction program.^ Underwriter — To be-

Mid-Continent

R.

35

stock.

;

National Old Line

cents).

determined

(307)

per

share

Underwriter—Skyline

ings
and

and Profit Sharing Pension Fund for employees,
2,000,000 shares, of common stock which represents

Continued

on

page

36

The Commercial and Financial Chronicle...

36

(303)

35

Continued, from page

number of shares not

maximum

the

-

it is anticipated, may
Fund within the next 12 months.
tered which,

Security Casualty Insurance

previously regis¬

be purchased by the

Co.

Proceeds—For working capital, etc.
Office—257 Josephine St., Denver, Colo. Underwriter—
Cntermountain Securities. Inc., Denver, Colo.

.

June 29 (letter

—

Southwestern Resources, Inc.,

June

Santa Fe, N. M.

filed 1,000,000 shares of common stock (par 25
Price—$5 per share. Proceeds—To exercise op¬
purchase additional properties and for general

8

cents).

tions,

corporate
rities Co.,

Underwriter—Southwestern Secu¬

purposes.

Dallas, Texas.

-.yy-XX

^Trans-Graphic Corp.
July 5 (letter of notification) 48,000 shares of 8% cumu¬
lative convertible preferred stock
(par $1) and 9,600
shares of common stock (par one cent) to be offered
in units of five shares of preferred stock and one share
of common stock. Price—$5 per unit. Proceeds—To re¬
pay debt and for supplies and working capital.
Address
—Jay Flaxman, President, 34 East 92nd St., New York,

:

shares of common stock (par
cents) being offered for subscription by common
stockholders of record July 9, 1956, on the basis of
one new share for each 10 shares held; rights to expire

50

$20.50 per share. Proceeds —
To reduce bank loans and for capital expenditures. Un¬
derwriters—Lehman Brothers and Merrill Lynch, Pierce,
Fenner & Beane, both of New York.
July 25, 1956.

Price

—

N. Y.
•

Indianapolis, Ind.
July 3 filed 200,000 shares of common stock (par $2.50)
to be offered to agents and employees of Automobile
Underwriters, Inc., "Attorneys-in-Fact for the Subscrib¬
ers
at
the State
Automobile Insurance Association."
Price—Proposed maximum is $7.50 per share. Proceeds
—To obtain

a

—Allen

&

"

U

Price—

($10 per share). Proceeds—To repay a $1,400,000
held by Equity General
Corp., a subsidiary of

(J. P.)

short-term

mortgage bonds and $368,679 of 6%

of 4%%

Utco

'

Suburban Land Developers, Inc., Spokane, Wash.
Feb. 2

(letter of notification) 920 shares of 6% cumula¬
tive non-voting preferred stock ($100 per share) and
2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
Proceeds—For improvements and working capital.
Of¬
fice—909 West Sprague Ave,, Spokane, Wash.
Underwriter—W. T. Anderson & Co., Inc.,

-

Sun

Oil

Spokane, Wash.

Co.,

Philadelphia, Pa.
April 18 filed 229,300 shares of common stock. Price—At
the market.
Proceeds—To selling stockholders. Under¬
writer—None.

Supercrete, Ltd., St. Boniface, Manitoba, Canada
28 filed 245,000 shares of common stock
(par 25
cents). Price—Expected at about $5.50 per share. Pro¬

June

ceeds—Approximately $675,000 for acquisition of stock of
Sons, Ltd. and repayment of advances
Supercrete by John Jackson; approximately $200,000
for expansion of production facilities; $90,000 for
pay¬
ment of term bank loans; and
approximately for working
capital. Business — Manufacturer of concrete building
blocks, concrete pipe, pre-cast and prestressed concrete
building products, and other items. Underwriter
Straus
Blosser & McDowell, Chicago, 111.
Thomas Jackson &
to

.

Sweet Corp.

-

(Utah)
May 7 (letter of notification) 300,000 shares of common
stock. Price —At par ($1 per share).
Proceeds —For




.

-

:yX
~

•

Vance

Jan.

Industries,

Inc.,

Evanston,

plant and purchase of
Underwriter—None.;

eqiipment.
.

stock

(no par).

Underwriter—None.

-

,

yX'yy

Orleans, La.

Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding 1
obligations. Underwriters—Woolfolk & Shober and How- !
ard, Weil/ Labouisse, Fredrichs & Co., both of New
Orleans, La. Offering—Tentatively deferred. - Statement i
;•

-.V

1

y/Xyj X'.'X

if World Publishing Co.- XXy: XXX
■■X'Xy
•July 5:'(letter of notification) 1,800 shares of common!
stock (no par) to be offered to employees.
Price:—At!
mean between highest and lowest on the Midwest Stock
i
Exchange on the date preceding the public offer: Pro-j
—

swners

city.

Xy

of

j

Wycotah Oil & Uranium, Inc., Denver, Colo. * ;
j
shares of common stock (par one!
cent) to be offered only to the owners of percentage* of I
working interests in certain oil and gas leases and to the>

Uranium

Underwriter—None.

lease

Nov. 10 filed 1,500,125

★ Utco Uranium Corp.
:
June 29 (letter of notification) 116,667 shares of common
stock (par one cent). This includes 50,000 shares subject
to option at one cent per share.
Price—At market (esti¬
mated at 12 cents per share).
Proceeds—For mining ex¬
penses.
Office—310 First National Bank Bldg., Denver,
Colo.

for

For working capital.
Office ^— 2231 West 110th
St., Cleveland, Ohio. Underwriter—None.'
X-

Corp., Denver, Colo.
Jan. 30 (letter of notification) 200,000 shares of com¬
mon stock, which are covered by an option held by the
underwriter.
Price—10 cents per share. Proceeds—For-;,
mining expenses. Office—310 First National Bank Bldg.,
Denver, Colo. Underwriter — Amos C. Sudler & Co..
same

sold

Feasterville, Pa.

ceeds

XyXX't 'X y'X'XX vXX':V-''XX'

^

be

effective Feb. 28.

Price—At par ($1 per

Inc., Shreveport, La.

preferred stock of'

Offering—Temporarily deferred.

■

(par

$5)
sale to the present stock¬
that more than 42,5(0 shares
immediately. Price—$10 per share.y Pro¬

initially

Woods Oil & Gas Co., New

$5 per share. Proceeds — To organize a new
wholly-owned legal reserve life insurance company un¬
der Louisiana laws.
Underwriter:—Frank Keith & Co.,

first

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of com¬
mon stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter—
R. Reynolds & Co.. Salt Lake City, Utah.

;

Price

subsidiaries.. Underwriter—Goldman, Sachs & Co., New
York.

;

stock

16,000 shares of Class R
Price—$10 per share. Proceeds
—For
buildings, improvements and working capital.
Business—Amusement park.
Office—41 Bustleton Pike,

Investors, Inc., Shreveport, La.
June 27 filed 300,000 shares of common stock (no par).

& Co., Inc., New York

loans, to retire $950,000

/ y

"y'"

Inc.

common

It is not expected

common

Underwriter—Mickle &

Chemical Corp.

Products,

74,016 shares of

* Wonderland, Inc.
July 16 (letter of notification)

Universal

June 28 filed $30,000,000 of debentures due July 1, 1981.Price—To be supplied by amendment. Proceeds—To re¬
duce

&

Wood

XXy/XyX;

,.'y

Office—Phillips, Wis.

(letter, of notification) 300,000 shares of capital
share). Proceeds—For min¬
ing expenses. Office—825 Broadway, Farrell, Pa. Under¬
writer—Langley-Howard, Inc., Pittsburgh, Pa.

stock.

-

Stevens

Fuel

offered

ceeds— For

May 17

Equity Corp.; to liquidate existing bank loans and for
general corporate purposes.
Underwriter—None, but
Equity General Corp. has agreed to purchase at par,
'» plus accrued dividends, up to 290,000 shares of the new
preferred stock not subscribed for by stockholders. Lat¬
ter already owns 137,640 shares (3.23%) of Sterling com¬
mon stock, plus $1,800,000 of its convertible debentures.
•

will

(letter of notification) 240,000 shares of common

Universal

filed

holders.

Houston, Texas

Houston, Tex.
Co., Houston, Texas.

25

be

to

improve¬

Underwriter—None.

Wisconsin
June

stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production. Office — San

Jacinto Building,

"X :'
DeI,

Price—At par *($1,000 per debentures).« Proceeds
of a golf house and other

ments.-

y

■i

At par

,

Club.

—For construction

Co., Bache & Co. and Reynolds & Co., Inc.,
Offering—Temporarily postponed.4*
OH Co.,

Underwriter—

April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the

Si Materials Corp.

Union of Texas

Road, Cincinnati, Ohio.

'/"•/"X'-'X'X-yXX ;X>X /. ■;yy ; /' y'H'X,X;
Wilmington Country Club; Inc., Wilming on,

all of New York.

Jan. 19

on a l-for-7 basiiv
Price—
Proceeds—For working capital/ Office

share.

Maison

None.

Underwriter-^E. R. Bell Co., Kansas City,

Chemical

stockholders

common

per

—3500

f■:y:

Union

Underwriter—None.

note

$6.84

May 25 filed 200,000 shares of common stock (par $10).
Price—To be supplied
by1 amendment.
Proceeds—To
selling stockholders. Office—Chicago, 111. Underwriters

Commissioner of the State of Indiana to begin business.

ferred for each 10 shares of common stock held.

class B

Minerals,

Topeka, Kan.

Co., Cincinnati, Ohio
r
(letter of notification) 20,666 shares of class B
stock (par $1) to be offered for
subscription by

20

common

7.

Underwriter—None.

U-Kan

Mo.

certificate of authority from the Insurance

Sterling Precision Corp., New York 'X
/ - •W.¬
July 9 filed 379,974 shares of 5% cumulative convertible
preferred stock, series C, to be offered for subscription
by holders of outstanding common stock and series A
and series B preferred stock in the ratio of one share
of new preferred stock for each four shares of series A
or series B preferred stock and
one share of new pre¬

Feb.

Inc., Topeka, Kansas
June 19 (letter of notification) 599,600 shares of common
stock (par 10 cents).
Price—50 cents per share. Pro¬
ceeds—For mining expenses, Office—204 Central Bldg.,

Insurance Co.,

Statesman

Williamson

Office—Dyersburg, Tenn.
Ariz.

program.

Togor Publications, Inc., New York
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—-Federal Investment Co., Washington, D. C.

June

on

construction

Underwriter—The First of Arizona Co., Phoenix,

XX'xxX'XX,:yXy(X;':

Sperry Rand Corp.
14 filed 2,570,846

Sage Uranium Corp.
X-VX'X'
Feb. 13 (letter of notification)
15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share)/. Proceeds
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah, x X

June

—For

October, Xv X

or

White

/.

,

ii

expected until sometime in September

Tipton County Utilities Co., Inc.
XX vv/v "'"y" y
21
(letter of notification) $115,500 of 5%% first
mortgage bonds dated Jan. 1, 1956 and due 1958-1980,
inclusive.
Price—100% and accrued interest. Proceeds

-7

;

writers—Hemphill, Noyes & Co., New York; Courts &
Co., Atlanta, Ga.; and Equitable Securities Corp., Nash¬
ville, Tenn. Offering — Temporarily postponed. Not

if Thermoray Corp.
June 29 (letter of notification) 380,000 shares of com¬
mon stock
(par 10 cents). Price — 75 cents per share.
Proceeds—For inventory, working capital, etc. Business
—Electrical heating. Office—26 Avenue B, Newark, N. J.
Underwriter—Eaton & Co., Inc., New York.

Television Corp.
A
470,000 shares of common stock (par 10

writer—None.

be used to retire outstanding series A and series B
5%
first mortgage bonds, and for expansion program. Under¬

For

Underwriter—Western States In¬

At the market. Proceeds — To selling
Underwriter—None.
Southwestern Oklahoma Oil Co.,-Inc.
Feb. 27 (letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for subscription by
-stockholders. Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas properties.
Office—801 Washington Bldg., Washington, D. C. Under¬

of notification) 300,000 shares of common

(par 25 cents). Price—$1 per share. Proceeds—
drilling for oil and gas expenses. Underwriter—
Thomson Kernaghan & Co., Ltd., Toronto 1, Ont., Canada.
stock

Skiatron Electronics &

Price

Underwriter—None.

Chattanooga, Tenn.

May 23 filed $2,000,000 of convertible subordinated de¬
bentures due June 1,1976, and 136,000 shares of common
the company's account and 61,000 shares for a
selling
stockholder.
Price — To
be supplied by amendment.
Proceeds—Together with proceeds from private sale of
$1,500,000 43A% first mortgage bonds and $900,000 of
3-year unsecured 4%% notes to a group of banks, will

Calgary Co., Abilene, Texas

Texas

Co., Tulsa, Okia.

etockholders,

Whetand Co.,

Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,
Wash.
Xy
,;X y ■ ;XyX,\y. • Xyy;X

Shangrila Uranium Corp.
Dec. 30 (letter of notification) 300,000 shares of com¬
mon stock.
Price—At par ($1 per share). Proceeds—

16 filed

-

Price—At par ($1 per share).
Proceeds—To start
dealer or brokerage business.
Office—921 Sims Bldg.„

Albuquerque, N. M.

Blag., Spokane, Wash.

Price—$4 per unit.

March

Corp. of New Mexico
"
(letter of notification) 50,000 shares of common

13

stock.
a

preferred stock (par 50 cents) to be offered in units of
share of common and three shares of preferred stock.

cents).

Feb.

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For mining expenses. Office — 422 Paulsen

one

vestment

Western Securities

mining expenses. Office—Continental Bank Bldg., Salt
Lake City, Utah.
Underwriter — Coltharp Investment
Inc., Salt Lake City, Utah.

March 1

May 10 (letter of notification) 30,000 shares of common
stock (par 30 cents) and 90,000 shares of participating

For mining expenses.

Thursday, July 19, 1953

of certain

uranium

properties, and in exchange

for such working interests and properties. Price—Shares
to be valued at an arbitrary price of $4 per share. Pro¬

ceeds—To acquire properties. Underwriter—None.

★ Wyoming Oil & Gas Co. -yyXXX
" \Xy;
July 9 (letter of notification) 200,000 shares of
Price—At par

stock.

(25 cents

XXV

-

<

*

j

\

common,

share).
Proceeds—
For development of oil and gas properties.
Office—152^
South Forest St., Denver, Colo. X Underwriter—Wayne
Jewell Co., Denver, Colo.
•

Yale & Towne

per

Manufacturing Co.

:

14 filed 269,204 shares of capital stock

July

X

(par $10)

being offered for subscription by stockholders of record
July 6 on the basis of one new share for each seven
shares

held; rights to expire on. July 23.. Price—$24.50
Proceeds—For expansion program. Under¬
writer—Morgan Stanley & Co.. New York.

X

per

III.

24

share.

(letter of notification) 7,000 shares of common
(par one cent). Price—$7 per share. Proceeds—
selling stockholders. Office — 2108 Jackson Ave.,

June 5 filed 22,977 shares of common stock (no par) being
offered in exchange for common stock of Emsco Man¬

Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.

ufacturing Co. on the basis of one share of Youngstown
for each three shares of Emsco; offer will expire on

Washington Natural Gas Co.
18 (letter of notification) 187,500 shares of com¬
mon stock (par 10 cents). Price—$1.25 per share. Pro¬
ceeds— For working capital.
Office — 217 Washington
Ave., Clarksburg, W. Va. Underwriters—Barrett Herrick & Co., Inc., New York, N. Y. and Ross, Borton &
Simon, Inc., Cleveland, Ohio.

> 8.;
Youngstown presently owns 388,853 shares,
representing 84.94% of the 457,786 outstanding shares of
Emsco common stock. Statement effective June 25.

Youngstown

stock
To

Piospective Offerings
Air-Vue Products

Corp., Miami, Fla.
early registration is expected
of 150,000 shares of common stock. Price—Around $4.25

^Western Acceptance Corp.
■/
July 3 (letter of notification) 100,000 shares of class A
common stock (par $1).
Price—$3 per share. Proceeds
—To form a small loan company. • Office—509 Roosevelt
St., Phoenix, Ariz.
Underwriter—None.
.

Feb.

.

,

20

it was reported

share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, I1L
per

American

if Western Credit Corp.
June 29 (letter of notification) 100,000 shares of common
stock (par $1).
Price—$1.35 per share.
Proceeds—To
increase working capital for loans and discounting paper.
Office—3304 North Third St., Phoenix, Ariz.
Under¬
.

;

Aug.

June

writer—None.

Sheet & Tube Co.

Louisiana Pipe Line Co.

July 2 it was announced company plans issue

and sale

$15,000,000 of cumulative preferred stock. Underwriter
—May be determined by competitive bidding. Probable
bidders: White, Weid & Co.; The First Boston Corp. Ofof

-CI

j

,•

r.

„r

mci?

Volume 184

■

Number 5552

..

.The Commercial and Financial

American Petrofina, inc.

-'/

June

14

merger

it

/

\

Coastal

announced-that

following proposed
with Panhandle Oil Corp., American Petrofina,
was

Feb. 29 it

.,

with

Ltd. will offer to stockholders of Panhandle and Petro¬
fina of Belgium and to Canadian Petrofina the
oppor¬

7

on

expected to be offered

are

on

on

or

about Oct.

the basis of

one

it

was

announced

ed to be received

Commercial
March 12 it

1

of

Texas

General Public Utilities Corp.
• April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock.
It is also pos¬

565.7 mile

a

pipeline
Underwriters—May be Lef»Co., both of New York.
Inc.

sible that
for

company

on

Corp.

,

W Consumers Power

Co.

(8/14)

t

b

000

of first mortgage

June
for

new

construction.

*r
^

—

be

Probable bidders:

construction

determined

pro¬

by competitive

Halsey, Stuart & Co. Inc.;

Co. and A. C. Allyn & Co. Inc. (jointly); Lee Higginsoo. '
Corp. and Carl M. Loeb, Rhoades & Co. (jointly); Stone
Corp. Bids—Tentatively scheduled
to be received on Sept. 10. * ' ; 11
"
/
f

& Webster Securities

* Gulf States Utilities Co. (9710)
July 14 company announced that it intends to offer pub¬
licly 90,000 shares of common stock (no par). Proceeds—
To repay bank loans.
Underwriter—To be determined
by competitive bidding. Probable bidders: Stone & Web¬
ster Securities Corp.; Merrill Lynch, Pierce, Fenner &

-

$40,000,-

Underwriter

bank loans and for

Lehman Brothers; Merrill Lynch, Pierce, Fenner & Bean©
and White/ Weld & Co. (jointly); Salomon Bros. & Hutz¬
ler and Union Securities Corp. (jointly); Kuhn, Loeb &

.

bonds to mature not earlier than

1, 1986. Proceeds—For reduction

repay

Underwriter—To

bidding.
;

June 19 company filed an
application with the Michigan
P. U. Commission for
authority to issue and sell

it Boulder Acceptance Corp., Denver, Colo.
July 16 it was announced company plans to offer and
sell 3,000,000 shares of its common stock/ Price—At
par
($6 per share). Proceeds—To construct hotel; set up in¬

it Gulf States Utilities Co. (9/19)
July 14 it was announced company plans to issue and
sell $13,000,000 of first mortgage bonds due 1986.
Pro¬
gram.

-

,

Stone

ceeds—To

•

.

Hutzler

and

/

fTo be determined by competitive bidding. Probable
y'l Blackstone Valley Gas Jfc Electric Co./ : / / bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley &
April 30 it was reported ^company plans to issue 25,000
•
Co. and The First Boston Corp
shares cumulative preferred stock .(par $100),[ Proceeds
(jointly); White, Weld
'1 —To reduce bank loans. Underwriter—To be
;/
&
Co.
and
Paine, Webber, Jackson & Curtis (jointly).
determined
Bids—Expected
to
be
received
by competitive bidding. Probable bidders: W. C. Langup to 11 a.m. (EDT) on
Aug. 28. Registration—Now planned for July 16.
ley & Co.; Stone & Webster Securities Corp.; Salomon

,

Corp.; Kuhn, Loeb & Co. and Salomon Bror?.
(jointly); Paine, Webber, Jackson & Curtis?
& Webster Securities Corp. (jointly); White,
Weld & Co. and Kidder, Peabody & Co. (jointly). Bids
,—Tentatively
expected to be received on Sept. 12.
&

'

.

,

7

Securities

Commercial National Bank,
Shreveport, La.
26 stockholders approved a
plan to issue and sell
to stockholders
31,000 additional shares of capital stock
(par $25) on the basis of one new share for each 4.8064
shares held as of record June

V Appalachian Electric Power Co.A
May 31 it was announced company plans to issue and .'
sell in December $24,000,000 ;of first
26, 1956. Price—$52 per
mortgage bonds.'
/ share. Proceeds—To increase
Underwriter—To be determined by competitive
capital and surplus.
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Union Secu¬ 5 / Consolidated Natural Gas Co. (8/28) rities Corp. and Kuhn, Loeb & Co.
(jointly); The First
June 12 it was announced company plans to issue and
Boston Corp.; Harriman Ripley & Co.,
sell $30,000,000 of debentures due 1981. Underwriter—

,

offered

Probable

June

Bros. & Hutzler; Kidder, Peabody &
Co.; Harriman Rip¬
ley & Co. Inc. Bids—Expected to be received sometime
in July.
-i i
..
;
;
:/ t
i

slock will be

Underwriter—To be determined by competitive bidding
bidders: Halsey, Stuart & Co. Inc.; Equitable-

was

—

Underwriter—None.

common

General Telephone Co. of California
(9/12)
July 10 company announced plans to issue and sell about
$20,000,000 of first mortgage bonds, series F. Proceeds—
To discharge bank loans and for construction program.

Bids—Expect¬

reported company plans early registra¬
$25,000,000 of junior subordinated deben¬
tures.
Underwriter
Kidder, Peabody & Co. and The
First Boston Corp., both of New York.
1

share for each 10 shares held on a record date in
Sep¬
tember to be fixed by the directors.
Rights are to expire
Nov. 5, 1956. Price—$100 per share.
Proceeds—For

issue of

subscription by

.

Oct. 2.

Credit

new

"2

1957.

issue and sell

may

a

^

common stockholders before AprUp
Proceeds—To repay bank loans, etc., and for con¬
struction program.

(10/2)

tion of about

new

on

expansion of plant.

15

Houston,

application has been filed

Stanley & Co.

increasing the authorized capital stock from 60,000,to 100,000,000 shares of which about
5,750,-

subscription by stockholders

Corp.;
an

—

shares

000 shares
for

announced

$30,000,000 of debentures. Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan

-•

* American Telephone & Telegraph Co. (10/1)
July 18 company announced stockholders will vote Sept.
€00

Transmission
was

the FPC for construction

Columbia Gas System,
Feb.

Co., Inc.; and Hemphill, Noyes &

Co.

(309)

system to cost $68,251,000.
man Brothers and Allen &

tunity to subscribe to additional "A" stock of American
Petrofina.
Price—$11 per share.
Underwriters—White,
Weld & Co.; Blyth &

Chronicle

of bank loans and

To be determined

Beane and Lehman Brothers
by competitive bidding. Probable bidders: Halsey, Stuart
(jointly); Carl M. Loeb,
& Co. Inc.; Harriman
Rhoades & Co.
Bids—Tentatively scheduled to be re¬
stalment loan company; and for
Ripley & Co. Inc. and The First
working capital and
ceived
on
Sept. 10.
general corporate purposes. Underwriter—Allen Invest¬ / Boston Corp. (jointly); Morgan Stanley & Co.; White,
/•Weld & Co. and Shields & Co. (jointly). Bids—Scheduled
ment Co., Boulder, Colo. Stock to be sold in
it Haskelite Manufacturing Co.
;
;
'
Colorado. "}
/ to be opened at 11: 30 a.m. (EDT) on
July 16 it was reported company may be considering sale
Aug. 14. Registra¬
• California Electric
Power Co. (10/9)
tion—Expected on July 20.
of
about
$1,000,000 to $1,500,000 bonds or debentures.
>f
July 16 it was announced company plans to sell $8,000,Crane Co., Chicago, III.
Underwriter—May be G. H. Walker & Co., St. Louis and
;/VV
000 of first mortgage bonds.
Proceeds—For construc¬
New York.
F. F. Elliott, President, on March 18 stated in
/
part: "To
tion program. Underwriter—To be determined
by com¬
meet the cost of present proposed
Nigh Authority of the European Coal and StcsB
capital expenditures,
petitive bidding. Probable bidders: Halsey, Stuart & Co.
it appears that some additional
financing
Community,
may be necesLuxembourg
,/
/
Inc.; Shields & Co.; .Merrill Lynch, Pierce, Fenner & ;
sary." Underwriters—Morgan Stanley & Co. and Clark,
July 9 this Authority announced that an American bank¬
Beane and Kidder,
Peabody & Co. (jointly); Blyth &
Dodge & Co.
ing
group
consisting
of
Kuhn,
Loeb
&
Co.,
The
First
v,7i ■■ /f:'/■■•/ </'■' ■■/'"/ -—'z
Co., Inc.; The First/Boston Corp. and Salomon Bros.
• Detroit Edison
Boston Corp. and Lazard Freres & Co/ has been ap¬
Co.
& Hutzler (jointly); Lehman
.'-/-l
Brothers; White, Weld &
pointed to study the possibility of a loan to be issued
July 16 it was announced that the company plans to offer
Co. Bids—Expected to be received on Oct.
9.//;;/
on the American
market.
The time, amount and termn
to its common stockholders sometime in
August $59,778,Carolina Power & Light Co.
will depend on market conditions.
(9/11)...' <
900 of convertible debentures on the basis of
Proceeds — To be$100 of
March 22 it was announced
loaned to firms in the Community for. expansion of coal.
company plans to issue and
debentures for each 21 shares of stock, held*. Price—To
sell $15,000,000 of first
mortgage bonds due 1986. Underbe named later.Proceeds—Together with other
minesv
coking
plants,
power
plants
and
iron ore mines.
funds,
/ writer—'To be determined
by competitive bidding. Prob¬ / for additions and improvements to
Hollander
(A.) & Son, Inc. (N. J.)
>
property.
Under¬
able bidders;.; Halsey, Stuart & Co
writer—None. :
Inc.; Kuhn, Loeb &
'//
••••' /
-V
July 2 it was announced that stockholders of A. Hol¬
Co. and A. C. Allyn & Co. Inc.
(jointly); W. C. Langley
lander & Son, Inc. (Del.) will be afforded an opportu¬
Dolly Madison International Foods Ltd.
& Co. and The First Boston
Corp. (jointly); Equitable;
nity to subscribe, pro rata, for shares in the New Jersey
Nov. 15 it was announced that Foremost
Dairies, Inc.
Securities Corp.; Blyth & Co., Inc.;
Kidder, Peabody & ■ Intends at a future date to
company, which has just been organized to acquire a
give its stockholders the right
:Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly).
substantial part of the operating assets of the Delaware
to purchase its
Dolly Madison stock.
Underwriter—
.Bids—Scheduled for Sept. 11.
.
;
company.
Underwriter—May be Merrill Lynch, Pierce,
Allen & Co., New York.
-Xy
Fenner & Beane, New York.
Offering—Expected early
t;V Central Illinois Light Co. (S/16)
Du Mont Broadcasting Corp./,. "v
//',*■/:
/, in
August,
v
•
\ ■ v
July 5 it was announced company has applied to the.
■jy: < t'// ,. r;,, ■ v; ; ; ,
' v !
Aug. 10 it was announced that corporation, following isIllinois Commerce Commission for
Houston Texas Gas & Oil Corp., Houston, Texa* :
auance on Dec. 2 to stockholders of Allen B. Du
authority to issue
Mont
and sell 80,000 shares of cumulative
Feb.
29
it
was announced an application has been filed,
preferred stock (par
Laboratories, Inc. of 944,422 shares of common stock as
with the FPC for permission to construct a 961 mile. ■'/$100).; Proceeds—To repay bank loans and for new con¬ V'a
dividend, contemplates that additional shares will be
struction.
pipeline system to cost $105,830,000.' Underwriters—May :
Underwriter—May be Union Securities Corp.,
offered to its stockholders. -This offering will be unNew York.
be Blyth & Co., Inc., San Francisco, Calif.; and ScharJ# *
derwritten. Kuhn, Loeb & Co. and Van Alstyne, Noel
•///■•-V/
& Jones, Inc., New Orleans, La.
& Co. handled Du Mont Laboratories class A stock fiCentral
.

-

;

.

.

-

•

.

:

>

,

-

Illinois Public Service

Co.

;

,

some years ago.
Stockholders of Laboratories
Oct. 10 approved formation of Broadcasting firm.

on

V,

Eastern Shopping Centers, Inc.
/
;
/.
May 7 it was announced this company has been formed
of this year.:, The elass of
to
locate
and
develop shopping centers east of the
security to be sold and, the
exact timing of the transaction have not been
deter- / Mississippi, the funds to come from an offering of stock,
mined. It is also possible, ILfavorahle
one-third to Grand Union Co. and the balance to be
money conditions
prevail at the" lime, that, sorop portion of the 1957 re/
offered to Grand Union stockholders. Office—East Pat-/,
quirements for new'money may be obtained in the
terson, N. J. Underwriters—Morgan Stanley & Co. and'
second halfatthis yearrVCnderwriter—To
W. E. Hutton handled new
be determined
financing by Grand Union-..
obtained

from

the

sale

of

;

securities in the second half

.

*

>

by compelitiverbWdingi -Probable bidders: (1) For bonds
-rr^Eialsey, .Staart & Co* Inc.; Kuhn, Loeb & Co. and A.
C:Allyn •& Co. .Inc. (Jointly); Salomon Bros. & Hutzler;
Blyth
Co.-, Inc., Kidder, Peabody & Co. and Merrill
Lynch) Pierce, -Fenner & Beane (jointly); Blair & Co.

Incorporated;/ Equitable Securities Corp.

(2)

For

Co:

.

about
York.

Motor

Tranrport Co.
July 9 it was reported early registration is
expected
of 34,600 shares of 6%
convertible preferred stock (par
$10) and 66,500 shares of common stock (the latter to
be sold by certain
stockholders). Proceeds—From sale
of

preferred

to

Wisconsin

provide

Rapids,
Milwaukee, Wis.

Wis.

funds

for

expansion. OfficeUnderwriter
Loewi &

Co.,

—

shares

of

6%

cumulative convertible preferred
stock (par $10) and
28,000 shares of common stock. Pro¬
ceeds—For expansion. Underwriter—Loewi
&

waukee, Wis.

Co., Mil¬

Offering—Expected




,/V'•>* V".'

Underwriter

'-

'

;

;/

\

—

'•

late in July.

.

Counties

in

Long

Island,

N.

Lee Higginson Corp., New York.
General

April

2

it

Y.

Underwriter—

I

Acceptance Corp.
was

reported

company

plans

to

issue

and

sell $15,000,000 of debentures due in 1966, $10,000,000
of capital debentures due in 1971 and about $3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬

&

Curtis

—Expected

and

late

in

Union

Securities

Mav.

General Contract Corp.,

Registration

Corp.
•

Paper Corp.

'

reported company may in the Fall do
some
public financing. Proceeds—For expansion.
Un¬
derwriter—Lee Higginson Corp., New York.
!/'
/
was

(8/31)
/
*
/
plans to offer to
580,531 additional shares of capital stock ' /
at rate of one new share for each eight shares held ss
of Aug. 31; rights to expire on Sept. 28. About 99.3% of
the presently outstanding stock is owned by American
Telephone & Telegraph Co. Price — At par ($100 pershare). Proceeds—To repay advances from parent. Un¬
Illinois

June 29 it

Bell

Telephone Co.

announced the company

was

its stockholders

derwriter—None.

May 21 it

"/

• Fort Neck National Bank (L. I., N. Y.)
July 9 Bank offered to its stockholders 79,560 additional
shares of new capital stock (par $5) on the basis of one
share for each 2% shares owned as of July 9; rights to

Suffolk

it

Vickers Brothers/ New

—

Camera & Instrument Corp.
11, John H. Clough, President, announced that
working capital financing will be required in the near
future. Underwriter—Glore, Forgan & Co., New York.

,

25

Kaiser

Price

'•■./• /;'■

■

June

Around

200,000 shares of class A stock.

Fairchild

son

it Chippewa Plastics, Inc.
July 16 it was reported company plans to issye and sell
15,000

;//. /'"• ' :

expire on July 24. Frice—$14 per share. Proceeds—To
provide additional
banking facilities in Nassau
and

subscription by stockholders.
Central Wisconsin

.,.

June

stock—Blyth & Co., Inc., Merrill Lynch,

Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly); Glore, Forgan & Co.; The First Boston
Corp.; Lehman Brothers and Bear, Stearns & Co.
(joint¬
ly). Common stock will probably be offered first for

1954.,

$4.50 per share.

pre¬

(jointly); Kidder,'Peabody & Co. and Union Securities
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane.
common

in

Eternalite, Inc., New Orleans, La. ■';/■
/
May 28 it was reported company plans to issue and sell

v

ferred stock—Lehman Brothers and
Bear, Stearns & Co.
(jointly); Blyth & Co., Inc. and The First Boston Corp.

(3) For

Hudson Pulp &

nancing

May 16, M. S. Luthringer, President, said the new money
required to finance'the company's 1956 construction
^program is estimated at about $5,000,000 and will be

,//*

Corp.
' *>
announced that the

Steel
was

company

is arranging

$100,000,000 from institutional investors to
major expansion program to involve ap¬
proximately $113,000,000. Underwriter—The First Bos¬
ton Corp., New York.
to

borrow

finance its

new

Kansas

City Power & Light Co.
i
*
April 24 stockholders approved a proposal increasing
bonded indebtedness of the company by $20,000,000. Un¬
derwriter
To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The Firs*
Boston Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly).
Amount and timing
has not yet been determined
(probably not until first
—

half of

1957).

Long Island Lighting Co.
April 17 it was announced company plans to issue ana
sell next Fall $20,000,000 to $25,000,000 first mortgage
bonds. Underwriter
To be determined by competitive
—

.

St. Louis, Mo.

April 18 it was announced that company plans $5,000,000
additional financing in near future. Proceeds—To go to
Securities Investment Co., a subsidiary.
Underwriter—
G. H. Walker & Co., St. Louis, Mo.

Probable bidders: Halsey, Stuart & Co. Inc.;
Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
bidding.
W.

C.

Baxter, Williams & Co.

(jointly): Smith. Barney & Co.

Continued

on

page

38

.

The

38

(310)

V-v.

•

■

reported company plans to issue and
additional common stock. Proceeds—For ex-

it

3

was

sell some

,

pansion program. Underwriter—The First Trust Co. of
Lincoln, Neb.
Stock Increase—Stockholders will vote
on increasing authorized common stock from 100,000 to

Bank, West Hempstead,

National

Meadowbrook

•

July 12 stockholders approved
stockholders 104,500 additional

a

proposal to offer to

shares of capital stock

(par $5) on a basis of one new share for each
as of July 12; rights to expire on Aug.

rants will be mailed on

July 24.

expansion.

Proceeds—For

13 shares

13. War¬
Price—$21 per share.
Underwriter—Lee Higginson
:

held

Corp., New York.

(11/13)
is considering the
$10,000,000 first mortgage bonds due 1986. Under¬

Metropolitan Edison Co.

July 2 it was reported that company

competitive bidding. Prob¬
Stuart & Co. Inc.; White, Weld &
Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and Drexel
& Co. (jointly); The First Boston Corp. Bids—Expected

writer—To be determined by

March

Underwriter—To be deter¬
competitive bidding. Probable bidders: Halsey,
Co., Inc. and The First Boston
Corp. (jointly); Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly);
Equitable Securities Corp. and Union Securities Corp.
(jointly); Smith, Barney & Co.; Lehman Brothers and
Riter & Co. (jointly); and Glore, Forgan & Co. Bids—
Expected
be received on Sept. 12.
•
Offshore Gathering Corp., Houston, Texas
Nov. 18 David C. Bintliff, President, announced

has filed

pany

Louisiana

applied to the Michigan P. S. Com¬
to issue and sell $30,000,000 of
40-year debentures later this year. Proceeds—For con¬
struction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.

mature in 15 equal

annual instalments. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Corp.
announced that It is estimated
that total construction expenditures planned to start in
the current year and to be completed in mid-1959 will
amount to a minimum of $200,000,000. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; and
company

The First Boston Corp.
Natural
Feb. 20 it

Gas
was

Pipe Line Co. of America
reported company plans to issue and sell

late this Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬

ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly).

v

New
3

England Electric System
it

announced

plans to merge its
subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
was

company

—

The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co.

New

(jointly).

England Power Co.

Jan. 3 it

was

$10,000,000
of 1956.

announced company

of

first

mortgage

plans to issue and sell
bonds during October

Underwriters—To be determined by competi¬

tive bidding.

Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner &
Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
New England Telephone & Telegraph Co.

(8/29)
offering to stockholders
613,010 additional shares of capital stock (par $100)

June 20 directors authorized
of

at the
as

of

owns

rate

of

one

Aug. 29.
69.21%

new

an

share for each five shares held

American

Telephone

of outstanding stock.

temporary borrowings.

& Telegraph Co.
Proceeds—To repay

Underwriter—None.

1971.
mon

Probable bidders:
Bros. & Hutzler.




Halsey, Stuart & Co. Inc.; Salo¬

-

V
%

%

including $20,000,000 budgeted for.
il956. This large expansion, the company says, can be - *- financed wholly by debt and from internal sources.
Un' derwritei^—If determined by -competitive, bidding, may;:
*
include Halsey, Stuart & Co. Inc.; The First Boston Corp. y

,

■,

y^-

,,yyyyj^y-;Ty\ >,

•

;/ Racine

(10/17)

C<*;~ Milwaukee, Wis.

&

Rochester Gas &
r

Oklahoma

.

v

-

*

*'

'
•

>

Telephone Corp.'

40,000 shares of cumulative

'

' £

:

;■

the New

.

and sell

preferred stock (par $100/. ■'

Underwriter—The First Boston Corp., New York.:
:

Isouth

March 9,

^

Carolina Electric & Gas Co.?

S. C. McMeekin, President,

;

announced that it

that $10,000,000 of new money will be re- 4
quired in connection with the company's 1956 construe- /
lion: program. The company proposes to obtain a part i

}

is .expected

fits

requirements from the sale of $5,-*.T
stock and the balance; from the ^
prfvate sale of $5,000,000 principal amount of bonds. ;
Underwriter—Kidder, Peabody & Co., New York, y; ; "
southern. California: Edison Co. * (9/5) ■.w
July 5 it was announced company plans to sell not ex- !
ceeding $40,000,000 of first and refunding mortgage bonds. ;

of

00j),t)00
;

5,000,000 shares. Company has no immediate plan to do
any equity financing.
Underwriters—(1) for any com¬
mon
stock (probably first to stockholders) — Merrill'
Lynch, Pierce, Fenner & Beane. (2) For preferred stock,
to be determined by competitive bidding: Probable bid- V
bers: Merrill Lynch, Pierce, Fenner & Beane and White, '
Weld & Co. (jointly); The First Boston Corp.;.Lehman • ■;
Brothers and Blyth & Co., Inc. (jointly); Smith, Barneyi.:
& Co.; Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.

new money

of preferred

.

Troceeds^For

*

bef determined"

construction program.* Underwriter—To

Probable bid- -;
First Boston Corp. .
Blyth & Co.,. Inc.; *
Rutin; Loeb &, Co^.Bids—Tentatively expected to be reby competitive bidding.

be*s: Halsey, Stuart & Co. Inc.; The
and Dean Witter & Co. (jointly);
ceived

C.

-

stockholders approved a proposal * to increase
preferred stock by 100,000 shares (par

16

Rochester

Pacific Northwest Pipeline Corp.

'

,V-V-

May 28 it was reported company has applied to
YoriO5. S. Commission for authority to issue

Electric Co.

&

Gas

r.

;

authorized

the

17 stockholders voted to increase the authorized
preferred stock from 240,000 shares to 500,000 shares and
the authorized common stock from 3,681,000 shares to

*

Electric Corp.

$100), of which it is planned to issue 50,000 shares later
in 1956.
Underwriter — The First Boston Corp.;-New

May

(10/17)

Co.

Hydraulics &

July 9 it was reported that company plans to issue and J
sell some additional common stock. Underwriter—Loewi' :

1

May

on

Sept. 5.

•

'*

-

R.

Williams, President, announced* that ;
about 280,000 shares of common stock (par $1) are to be *
sold in connection with subscription contracts which were entered into at the time of the original financing *,
in April of 1955.
Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi-:
tional first mortgage bonds, and $10,000,000 of 5.6% ?
interim notes and borrowings from banks, will be used
to construction program. Underwriters—White, Weld &
Co.; Kidder, Peabody & Co.; The Dominion Securities r
Corp.; and Union Securities Corp. Registration — Ex¬

.

Southern

Counties Gas Co., of California'

Jan.- 30 it was

1

*

v

reported company may in the Fall offer

;
;

$15,000,000 of first mortgage bonds. Underwriter—To be \
determined by competitive bidding. Probable bidders: J

*

Halsey, Stuart & Co. Inc.;
Boston Corp.; White, Weld

'

Blyth & Co., Inc.; The First;/
& Co.; Merrill Lynch, Pierce, ;

Fe/i.ner & Beane.'* *• %*';*•*'
\ >,
Southern Electric Generating Co. - r
* 1
May 18; it was announced that this company, 50% owned t
by Alabama Power Co. and 50% "by Georgia Power Co., .
subsidiaries of Southern Co., plans to issue debt securi--;
pected soon.
ties;; Proceeds—Together with other funds, to construct ,
and operate a $150,000,000 steam electric generating plant ;
Pacific Telephone & Telegraph Co* (8/21)
v
Underwriter—May be
July 6 the California P. U. Commission authorized the" on; the Coosa River in Alabama.
determined by competitive bidding.. Probable bidders: ,
company to issue and sell $78,000,000 of 32-year deben¬
Halsey,
Stuart & Co., Inc.; Union Securities Corp., v
tures due Aug. 15, 1988.
Proceeds — To reduce tem¬
V Equitable Securities Corp. and Drexel, & Co. (jointly);\
porary borrowings and for capital expenditures. Under¬
writer—To be determined by competitive bidding. Prob¬ ; Lehman Brothers; Harriman Ripley & Co. Inc. and Gold- *
man, Sachs & Co. (jointly); Blyth & Co., Inc. and Kidder, ;
able bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley
;
& Co. Bids—Tentatively scheduled to be received up to: ; Peabody & Co. (jointly); Morgan Stanley & Co^>. v
«

-

-

8:30

a.m.

(PDT)

on

Registration

Aug. 21.

—

Southern Nevada

Expected:

Power Co.

.

*

-V>

Jupte 27 it was announced company plans to sell in the J
i-FalL, of--1956 an ,estimated $4,000,000 of. first mortgage Pacific Telephone & Telegraph Co. 4 '
bonds, series C, due 1986. Proceeds—For construction. July 6 company was authorized by the California P. U.
Offering—May be placed privately.
Commission to offer 1,562,267 additional common shares
Southern Union Gas Co. :
v
to
common
and
preferred stockholders on a 1-forApril ;19 it was announced company is considering is- ,»
6 basis.
American Telephone & Telegraph Co. owns an

July 27.

;

.

..

,

'

;•

.

•;

.

v

-

aggregate of 89.6% of the preferred and common stock.
Price—At par ($100 per share).
Proceeds — To repay
temporary borrowings and for new construction. Under¬
writer—None.

Pan Cuba

stockholders later this year of some :
stock on a pro rata basis (with an,,
oversubscription privilege). Underwriter—None.
i

suahce and sale to
additional

.

Oil & Metals Corp.

(Del.)

Walter E. Seibert, President, announced that
company will soon file a registration statement with the
SEC preparatory to an equity offering planned to take
place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
April

ir New York, New Haven & Hartford RR. (7/31)
Bids are expected to be received up to noon (EDT) on
July 31 for the purchase from the company of $2,500,000
equipment trust certificates to mature annually up to

*

•

•

Power

20

I

-

-amount to $87,000,000,

(jointly); Lehman Brothers. Bids—Tentatively expected
to be received up to 11 a.m. (EDT) on Oct. 17.

March

Jan.

.

July 2 it was reported company proposes to issue and
sell 60,000 shares of cumulative preferred stock
(par i
$100). Underwriter—To be determined by competitive
bidding.
Probable bidders: The First Boston Corp.;
Blyth & Co., Inc.; Kuhn, Loeb & Co.; Union Securities *
CJorpvand Salomon Bros. & Hutzler (jointly); Harrimaif /
Ripley & Co. Inc. and Stone & Webster Securities Corpi *

National Steel
the

•

Stuart & Co. Inc.; The First BosCorp.; Blyth & Co. Inc.; Kuhn, Loeb & Co.; Union
Securities Corp. and Salomon Bros. & Hutzler (jointly);
Harriman Ripley & Co. Inc.' and Stone & Webster Secu¬
rities Corp. (jointly). Bids—Expected to be received up
to 11 a.m. (EDT) on Oct. 17.
Ohio

(jointly).

Puget Sound Power & Light Co.
^
f ^
Feb. 15 the company announced that it estimates that its
"construction
program for the; years / 1956-1959 ■ will

:

ton

(CDT)

July 25, for the purchase from it of $3,645,000 equip¬
ment trust certificates to be dated Sept. 1, 1956 an<i to

Co.

of

able bidders: Halsey,

(7/25)

on

of

It is estimated that this gather¬

^■■ y

;.■

Ohio Power Co.

approved an increase in the
authorized common stock (par $1) from 1,700,000 shares
to 2,500,000'shares. Previous offer to stockholders was
underwritten by Kalman & Co., St. Paul, Minn.

determined.

been

not

—

July 2 it was reported company plans to issue and sell
$28,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

Gas Co.

RR.

York.

New

stockholders

Bids will be received by the company up to noon

Proceeds—To help finance
Underwriters—For any debenture
bonds
may be determined by competitive bidding;
probable bidders include Halsey, Stuart & Co. Inc.; The
First * Boston Corp.; Kuhn, Loeb & Co., and Lehman
Brothers (jointly); Morgan Stanley & Co. and Drexel &
have

com¬

gas pipeline off-shore the coast
Sabine River to the Gulf Coast

the

& Gas Co.

Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts
of the new securities to be issued and the time of sale
construction program.

plans call for private sale of first mortgage bonds und
public offer of about. $40,000,000 of securities (probably
notes, convertible into preferred stock at' maturity, and
common stock).
Underwriter—Salomon Bros. & Hutzler,

<

company

12

a

Public Service Electric

April 16, Lyle McDonald,

ing system will cost approximately $150,000,000. Type
of financing has not yet been determined, but tentative

(jointly); The First

for permission

Missouri-Kansas-Texas

for

from

Under¬

Proceeds—For expansion program.

(Sept. 3).

writer—Goldman, Sachs & Co., New York.

application with the Federal Power
certificate of necessity to build a

the State of Mississippi.

(jointly); Salomon Bros. & Hutzler; Harriman Ripley &<
Inc. and Union Securities Corp. (jointly); Kidder,

Minneapolis

an

364-mile submarine

Michigan Bell Telephone Co.

£ Procter & Gamble Co.
July 16 the company announced plans to negotiate the
borrowing of $70,000,000 probably through a public of¬
fering of 25-year debentures sometime after Labor Day

(9/12)

Stuart & Co. Inc.; Blyth &

Commission

Peabody & Co. and Drexel & Co.
Boston Corp.

Minn.

Power Co.,

mined by

Co.

March

its

program

—For construction program.

$5,000,000 of preferred stock (in addition to about $5,000,000 of bonds).
Underwriter — For preferred stock also
to be determined by competitive bidding. Probable bid-*
ders:
Smith, Barney & Co. and Goldman, Sachs & Co.

16

reported company plans to finance

was

construction

Northern States

April 16 it was reported company may issue in July
or
August, depending upon market conditions, about

April

Co.

Gas

July 2 it was reported company plans to issue and sell
$15,000,000 of first mortgage bonds due 1986. Proceeds

Nov. 13.

mission

it

12

^ Post Publishing Co., Boston, Mass. *
July 16 it was announced that a public offering of $4,000,000 5% three-year notes is planned if John S. Bottomly, a Boston attorney, does not exercise his option to
purchase the physical assets of the Boston Post by
July 31. Underwriter—Lamont & Co., Inc., Boston, Mass.

;

,

Natural

Co. Price—About $6

540,651.75 shares of Pittsburgh Rys.
per share.
*

(costing about $40,000,000)
through issuance of debt securities and treasury funds.
Underwriter—Probably Blyth & Co., Inc.
v

Metropolitan Edison Co.

April 19

-

,

Northern

able bidders: Halsey,

on

was

(7/24)

New York

sale of

8, it

York.

1956

200,000 shares.

May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders rights to subscribe for

announced company plans to offer to its
stockholders rights to subscribe for additional capital
stock (following proposed 2-for-l split up to be voted
upon Aug. 3). Underwriter—Morgan Stanley & Co., New

June

Steel Co.

Marsh

Pittsburgh Rys. Co.

Inc.

American Aviation,

North

37

Continued from page

July

July 19, 1956

Commercial and Financial Chronicle... Thursday,

r

9,

States, Cuba and Canada.
York, N. Y.

Office—-120 Broadway, New

common

Spencer Telefilm Corp., Beaumont, Texas
16 it was announced company plans to offer

pub-

-

shares of capital stock.
per share.-Business—To produce, sell and
syndicated films for television. Underwriter—

-

Jan;

licly to Texas residents 75,000Price—$1.50
distribute

Porter-Stacy Co., Houston. Tex.

Tampa Electric Co. (8/29)
JuJyj9 it was reported company plans to
<ci

ft'rtffiTfinn nf fircfr

mnrtpaffp

hnnrfs Hiip>

issue
and sell
Proceeds——

1Q86.

.
,

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

(311)

39

For

construction program.
Underwriter—To be deter¬
mined at competitive
bidding. Probable bidders: Halsey,
Stuart & Co.
Inc.; Stone •& Webster Securities Corp.;
Goldman,. S,achs & Co.; Kidder, Peabody & Co. Bids—

Expected

to be received
up to 11 a.m.

Registration—Planned

for Aug. 1.

(EDT)

on

United
June

issuance

..»;v

May

10, Gardiner Symonds,
President, announced that
company^ plans to sell about
$50,000,000 of mortgage
bonds late in the
third quarter or
early in the fourth

quarter

of

1956.

Weld

Loeb &

& Co. and

—
For expansion program.
& Webster Securities
Corp.,

Chairman,

Inc.

July 24 has been

set

the

as

deadline

directors will accept
to finance the
holders

announced that

the

stock

the company. Vickers
Brothers, New York,
handled last public stock
financing."
^
;

r*

1955 -debt

fun

cn

service

paid

was

313,463,694,

or

bonds

outstanding
1955, according to

Dec.

31,

bulletin

en-

on
a

The

increase

in

of

debt-service

bonds

issues

issued

in

of

to

amount

the

new

the

Institute

Finance

University,

of

»

of

<

■

-

,

.

;

Data

of

the

The
turn

in

(01)9 000)

eign

December 31, 15)55

%

76.46

(009,000)

%

$3,353.5

78.58

912.1

21.37

23.02

the

or

23.2

Total

the

1954

principal

0.52

$4,467.2 100.00

;

2.2

0.05

Geographical Distribution

of Bonds

Regard to Interest

in

Dec. 31,

on

Default

Amount

% of Total

Default

Defaulted

<000.000)

Bonds

$90.6

9.9

Europe
Far

812.6

89.1

plans.

8.9

1.0

For

North

I—

—-

East

*.

——

1,160.7
223.4

——

America
'

Africa

-

.

turn

;

655.0

Total
■

♦Less

—<

than

$39,000.

i $4,267.8

.V;

•

' $912.1

In

100.0

:

.iV

v

'"V

^

Contractual Amount of Interest Due and
Amount Received in
Cash for Coupons of Bonds
Outstanding Dec. 31,
,

Nominal

Contractual

% of Aver.

Amount

Amount

Contractual

of Interest

Outstanding
•

,

Latin America

Europe
Far

(000)

-

$687,149

East

Internatl.

3.06

-

Actual

Reconstruction

:

% of

Rec'd in

Aver. Kate

of Return

$14,717
13,696

2.14

9,481

4.25

9,000

4.03

54,762

3.61

54,761

3.61

-

resumption

actual

an

was

of

re-

received

on

rate

bonds

com-

as

contractual

Europe paid
1.18% instead of
rate.

Europe

5.66%.
in

In

of

rate

at the

con-

preceding

1.03%

instead

American

North

both years

rate

5.61%

the

paid

The

^r,lrn"nna\hrp
return
tne

on

Amount

Cash (001))

to the

paid the full

i

4.03%

was

of

rate

F3r

4.25%.

ceived in
coupons

of

.

cash

was

The
in

.

issues

contractual
amount

re-

respect to 1955
of the

.

due,

as

against

1954.

The

655,000

20,188

•

3.08

20,188

3.08

terest

contractual
due

and

amount

the

of

amount
--

$212,783,500

have

of

the

results

its

and

Total*

on

w-.vu

no

$4,242,800
of

$25,000,000

ttfUyuu

of

matured

Union
in

$170,642
of

1055.




South

Africa

4.02
bonds

$112,362
issued

on

Dec.

2.65

ceived for

Nov.

on

1,

1,

1955,

on

Dec. 31,

shown in Table III.

1943

territories

dependencies, and the balance
$43,857,300 was registered by^ §6.27%.^.

end

of

to

1955.

*

,

.,
-

Ways of Boosting Homebuilding Rate ?
m

Reporting housing starts off 13 to 14% first half of 1956 com¬
pared to 1955, but expenditures down only 6%, two staff
members of U. S. Savings and Loan League suggest stimulating
home buyers' interest by: (1) building new models capable of
attracting buyers able and willing to buy better housing but
who are not compelled to buy or trade up; (2) easier
monetary
policies, and (3) flexible interest rates for both insured and

The "best hope" for boosting
the rate of Homebuilding is the
development
of
"new
models"
that will excite customer interest,

terest rates for insured and guaranteed

mortgages,

"Current

trends

markets

money

be easing
time for

builders
to
adjust
to
changes," said the League

Norman Strunk, League Executive Vice-President, and Arthur

cials.

"Flexible

interest

would

be

to

but

.

will

it

take

that

suggest

may

according to two top officials of
the United States Savings and
Loan League.
^

some

helpful

such

offirates

builders

in

M. Weimer, League Economist,, giving
buyers
more
for
their
expressed
their
views
in
the housing dollar."
"Quarterly Letter" of the national
Strunk
and
Weimer
reported
trade organization for the savings p^at housing starts in the first half
and loan business.
: ! .
; 0£ 1955 were off approximately
the

And

officials

two

made

it: 13

that
they
believed
that
"easier credit," while it would
help, is not the whole answer to
the present decline in the volume
of home building.
clear

the

in

ease

js

months

ahead,

that

assurance

no

the

there

rate

homebuilding will advance to

of

any

degree," said Strunk dnd

marked
Weimer.

that

noted

They

interest

kUyer

^chasers

are

while

remains

home
strong,

to

the
i

larwise,

selective, and that houses
provide attractive degjgn and styling, and are not located on iarge> well-planned lots,

tend t0 Se" sl°wly'
Viadd
-fiyi
the

v^ocf

rate

o£

development

will

housebSnding ^s
of

stimulate

willing to
h

was much less pronounced,
expenditures for residential
construction down only about 6%
below 1955 levels.

with

Since

November, they said, the
Homebuilding
has
re-?
mained in the annual range of 1.1
to 1.2 million units, the exception
being February when the seasonof

rate

ally adjusted annual rate equaled
last year's 1.3 million units,

new

the-

up,"

.

«

0

Joins Froctor, Cook

(Special to the financial chronicle)

BOSTON,

Mass.

—

Samuel B.

Adelberg has joined the stall of
.

_

.

Proctor, Cook & Co., 10 Post Office

models that

Square, members of the New York

interest

of

compeiied to buy

said

«

v

the

who are able an<J
buy better housing but

not

when compared with
period of last year. Dolthey reported, the de-

cline

jngiy

qrpu.

14%

same

becoming increas-

that do not

Strunk

or

and

and Boston Stock Exchanges,
rp

r

jP

I WO WlthCarr & LO.
(Special to The Financial Chronicle)

Weimer.

re-

4uThey aidd?.d that other factors Boyson and Charles J. Spencer
£at
«je are now with Carr & Co„ Penob.
(1) easier monetary policies, and scot Building, members of the

"

19p5, are

(2)

the

DETROIT,

adoption

of flexible in-

•

-.;

*
Thus in the 12 years-from Jan.
1, 1944, through Dec. 31, 1955, the *
outstanding amount of Brazilian
dollar- bonds
was
reduced
by
the

in¬

1955 coupons on bonds

outstanding

of

shows that during 1955 the principal amount of dollar bonds was

and
of

-

debt

;

$95,988,975 : at

States

-

t-$

Government

Mich.

—

Bruce

i

•Exclusive

been
-

outstanding

United

v

adjustment plan of Nov. 23, 1943,

to
$137,589,900, of
which total $93,732,600, or 68.1%,
were deposited by holders in the

trade

&

Development

As

principal

validated.

jar bonds deposited for validation

con-

,

amount

in

a

65.85%

.

tractual

64.02%

Esstcrn

against

1.18
,

1,516,646

—

Bank

bonds assented

per-

while for 1954 the rates
3.09%, respectively.

tractual

of

the

in

1955

issues

1955

5.61

65,155 '

223,246

North America

Int. Due

$21,C56

1,160,759

—

Rate of

Due (OOO)

rise

principal

2.09 and

year

TABLE III

,

fully serviced is-

the

a

the

eluding bonds registered with the

amounted

the in-

to

new

2.14%

to

residents.

1955

amount of dollar bonds registered
with the Validation Board, in-

are

"Even if mortgage credit should

3.06%,

of

'

as

total

debt-service

of

were

.

2.6%

the

1955

pared

struction and Development—

In

interest

paid as comcorresponding

the-

Latin-American

International Bank for Recon-

4.02%.

cash

1954 is due

centage of

25.0

-—

of

of

average

constituted

to

and

sues

various

1,516.6 •*•

the

interest

of

amount of

Amount in

(run nnn)

$687.1

for-

offered

outstanding at
year, was 2.65%

rate

in

crease

Outstanding

"Latin. America

the

received

the nominal

on

amount

figure for

in

1955

interest

with

pared ' with

States
of

end

guaranteed mortgages.

against the contractual rate of
4.06%. The increase in the actual

$4,267.8 100.00

(

II

heading "Recent De-

the

re¬

based 4 upon

the

received

amount

TABLE

of

of

reduced by $11,569,430,' Since the
inception of the plan, the total
man
dollar bonds, in the period. Brazilian dollar debt
(exclusive
from Sept. 1, 1953, through Aug.; of the State of Ceara bonds) has
31, 1955, the face amount of dol-. been reduced from $284,560,645

only

bonds

compared

non-United

An analysis
the Brazilian

de¬

to

interest

publicly

dollar

company proposes to finance
construction of pipeline in
Virginia to

—

:

of

rate

cash

of

announced

settlement

Contractual Interest

contractual

'

St.

Latin

Canadian

amounted

coupons

end

as

sinking

fund

East.

1955,
of

1955

amount

Status of Tublicly Offered Foreign Dollar Bonds

$3,415.8
1,028.2

were

for

15'

were

vs.

: "

$3,380,000 from funds generated by operations,
sale of common stock and
temporary bank borrowings.
Underwriter
The First Boston
Corp., New York; and
•Johnston, Lemon & Co., Washington, D. C.

which

Far

For the year 1954, the

actual

amount

Debt service paid in full
In ueiauit in regard to
interestIn default in regard to

the

outstanding

bonds

Actual

was

new

by 21 German
discussed. According
£0 the Validation Board for Ger-

^e~

arid.4%- of

Far

it

resumption of debt service, progress and changes made in default

$25,100 pf total outstanding bonds-•
in the amount of $1,516,645,595.
f
In analysing interest
navments,
the Institute's study states:

for

Decemoer 31, 1&>4

Pro¬

obligors

the

*C/1° °*"

bonds

faulted

as

TABLE I
t

at

America, 73.3 for Europe, and 4.7
for

7

proposed

settlements

Jo ■& i

percentages

Registra¬

Washington Gas Light Co.

fore

interest on Dec. 31,

in default.

Co., New York.
1
,

plans, redemptions bematurity, and new issues,
resumption of debt service by
offering
adjustment
bonds
and

of

com-

Return

ly offered foreign dollar bonds

■>

accounted

lu
the

Eastern

the status of all public¬

on

9.9%
as

,.

Corporate Dollar Bonds.

York

for

bonds,

East

European,

issues, which in ^effect rerjder the

Inter¬

New

accounted

Latin

At
end of 1955, 13.2% of the
Latin-American bonds, 70 % of the

-

of

bonds.

geographical
distribution
of foreign dollar bonds in default

"Statistical
Analysis -of relevant bonds callable when the
Publicly Offered Foreign Dollar efft rs are approved by the For¬
Bonds," recently issued by Dean eign Bondholders Protective
G. Rowland
Collins, Director, and Council, Inc., or by the United
I r. Marcus
Committee
for
German
Nadler, Research Di¬ States
national

defaulted

bonds.

titled

rector,

.......,r

&

-

velopments,"
the
NYU
study
presents current information of

defaulted

The

reduced by $58,918,000 by the cash
settlement offers for various bond
Collins

of

ac¬

10.6% on Dec. 31,
s
percentage inIn1?1
J^-3%
at the end of
to
89^1% on Dec. 31, 1955.
Far

a *

soon.

total_ Latin-Amerr importance to holders of foreign courts and bonds
collectively valdefault,
^olivia ac- dollar bonds, including offers for idated, aggregated $222,472,800, of

fh°j £

amount of German bonds has been

Rowland

tion—Expected

Validation

65.59%, while German

inrce^arcL

reported offering is expected in near
70,000 shares of common stock. Under¬

writer—Granberv, Marache

Under the

Europe

1954

interest

-

in

Products, Inc., New York

was

over

Dollar Bonds Deposited for

.

S1

The

outstanding
bonds
caused by
amortization, calls, and
maturities.
The
total v principal

Nadlpr

it

4

future of

•• •••'.,

Inc.,

are

^

funding bonds
of

1955,

obligors

defaulted

Pni?
1954.

resumption

settlement

•>:/;:

represented 59.41% of total

Amenca

have partly offset the re¬
in
the
total
principal

arrears

duction

Vita Food
June

Price—$2

Richter Co.,

and

99%

the

European

($8,000,000). The

issues and the

new

Of

counted for
: -

($25,000,000),Norway .($15,000,Cuba

public.

31, 1955, European and

bonds

lcan

total

assented

1954

for

bonds.

City of Montreal ($35,Union of South Africa

0C0), and

bonds.

Securities Corp.; White, Weld &
Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

in Table I.

,

issues: the

000,000),

to

Scherck,

31,

counted

.

plans and to the flotation of

Marcus

Dec.

growing

of

mortgage

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co., American Securities
Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster

Underwriters—A. C. Allyn & Co.

Latin-American

proportion

number

offered

•

and

On Dec.

bonds serviced in full from 76.46%
in 1954 was due to the
various

be

summarized

shows 78.58%

Serviced

(9/25)

announced company plans to issue and sell
of first
and
refunding

$20,000,000

cost about

Increased Proportion of Bonds

on

78.58% of the total $4,267,800,440
Oi publicly offered
foreign dollar

& Power Co.

was

June

analyzed.

In

Feb. 6 it

* Universal Match Corp.
July 12 it was announced company plans to market about

debt service in 1955 was
paid in full of the total of publicly
offered foreign bonds
outstanding. Data are broken down for
different geographic areas and
specific countries, and differ-:
ence between actual and contractual
interest rates is

/ i

that

several

$6,500,000 in subordinated convertible debentures.

Foreign Bends' Debt Service Payment Rate Up
survey

of

V".

Inc., Chicago, 111.,
Louis, Mo.

.

N.Y.lh International Finance Instituted

will

ceeds—For expansion.

financing of

yv

Virginia Electric
stated

one

near

share.

per

offers from investment syndicates
company's operations in Mexico. Stock¬
July 25 will then vote upon the permanent

cn

is

Underwriter—Kuhn,

Co., New York.

subscribed

noon

which

on

debentures

future to offer to its 200 stockholders
500,000 additional shares of common
voting stock at rate
of not more than
2,500 shares to each stockholder. Un¬

Texas International
Sulphur Co., Houston,-Texas
July 18 M. A. S. Makris,
on

convertible

0

plans in

White,

Halsey, Stuart & Co.

of

University Life Insurance Co., Norman, Okla.
June 21, Wayne
Wallace, President, announced company
/

Proceeds

Underwriters—Stone

Rubber Co.

possible methods the company has been
considering for
raising $50,000,000 to $60,000,000 which may be needed
for plant expansion and
working capital. He added that, if
convertible debentures are
issued, they will be offered
pro rata to common stockholders.

Aug. 29.

.

..Tennessee Gas Transmission Co.

States

29, H. E. Humphreys, Jr., Chairman,

Detroit Stock Exchange.

H.

The Commercial and Financial Chronicle...

(312)

40

With King Merritt

ert W. Herdman is now

with King

Merritt & Co. Inc., 576

First Ave¬

North.

nue,

At 27-Year
Bulk
By ROBERT R. RICH

(Special to The Financial Chronicle)

but

•

Strive To Have

Wilshire Boulevard.

National Growth Stocks

d slocations

and

«

stock mutual invest¬

providing

a

supervised

investment in securities selected
for possible long-term growth of

capital with special consideration
given to corporations actively en¬
gaged in newer scientific develop¬
ments and technologies. Prospec¬
tus and other information may be
obtained from your investment

National Securities ft

re¬

have

business

in

areas

Now York

L

oro

vp

,f°Ud for possible
r^erm GROWTH of
and income.

piul

ment at good wage levels has
brought weekly take-home pay to
a new high point. Spendable in-

vertised developments may not be

bad

as

as

first feared.

Among the

is running strong, enabling

come

favorable developments in recent
weeks has been the stabilization

consumers to repay

debts rapidly.

This

way

in automobile sales at

pick-up

rate well

a

above current

in

pave

may

this

in

the

dealers hands is being reduced

fall,

The

steadily.

for some
spending

consumer

automobiles

including
and appliances,

production. Consequently, the large amount of cars

ll

building,

to

remain

Shareholders
Mutual

t'ie

large

likewise,

stabilized

the

at

Wellington
1956

year

period

in

invest-

Fund

consolidating

a

as

which

established

base

a

for

later

trend,

Mr.

being

is

resumption

0f the country's long term

of

growth

Kulp added.

the

lo re',

Sable

ui.bout
princip^

the

of

board

__

Inc.,

prospectus

on

fund

is

your

investment

available

front
deafer.

200
;

Berkeley Street

Boston, Mass.

Advisory

Board

maximum

the

Fund

is

to

New

;,

'

:*

'

'

common

1

v

and

;

of

contract

with

Frederic

Smith,
White

and

N.

■

J.

Roger

following officers
James

were re-

M.

Johnston,

Treasurer

Richard.

"

Ralph

-

S..

1

Johnston,

w_of

C^difornia Edison was elim¬
inated, and reductions were made
of 3,000 shares each of Chicago,
Rock Island & Pacific and Florida

e
s
so far this
Xffr rCPJ.who took
the December distribution from

c

,

fj?
the

,

Chairman
value

$22.75

was

first

the

the

of

asset

value

per

™ *1f ncrlt

The

year.

a

Net

S fi/ J
-l?01^386
of almost
8%, afback
the
December

ter

months

there had been
the

number

million in the first six
of. 1956, the largest gain
for any like
period on record,
Cameron K. Reed,.President, an¬

$41%

-

Randolph

Mr.

-aa

investing companies rose nearly

of

of 74 cents from

Directors

suing

reelected

year were as

for

the

en-

n0w

follows: James

80%

M.

Johnston,. James H v Lemon,
George
E.
Allen,
Jonathan
B.
Lovelace and Davis Weir.
;!

*Followihg

in

a

of

reported
20%

that

increase in

shareholders

sys¬

In the> corresponding
their in¬ nounced.
955 period net assets gained $39%
purchases
(million.
^
by plowing back dividends
More than half of the gain, in
distributions since announce-

tematically
vestment
and

adding to
by regular

ment in the first auarter report

the

new

tion

and

of

than

More

550

level of the national
that

———

as

new

United

increase

over

The Fund holds 74
issues

a

Science and

All

22

an

Total

.

June 30

Mug. iv.*..cmwm,u-

reinvestment of income dividends

investments of the

Legal Investments for Trust Funas

members

in the District of Columbia.

of

the

advisory

board

Fund
to

be

ment affects results of a monthly

different

the annual meeting
shareholders, the board of directors reappointed the following
of

required by its charter
selected from the List of

are

in 3

have added r?9% to total share
accunimation. When such a program is started with aa additional

c

Uiiited

313, or $9.66 a sfaare, a. year ago
The number of shares -outstanding

Manhattan Bond
a

[fund offering

diversified list of

-

■

1

;

...

' ;■

-

13,045,332-

from

sets
to

^11,65

was

8,811,276,

against 6,133,793 a

earlier^%l«"f

of dividends is increased

number of shares, outstanding was

investment

the

investor

over

the

(25%

will

10

as

put

years),

much

in the
share

by 50%.

year
.

United

?

v

Science

amounted to

j

against 2,815,616.

The study is based on system¬
atic investment in shares of Fun¬

3,123,548,

damental Investors, Inc.*' a mutual
fund investing in common stocks.

$24,230,851; equal to $8.53
a
share, against $17,973,062, or
$7.53 a share, a year ago. - The
number of shares outstanding was

is "published

tells

in

a

how

new

to

folder

build

a

C

United Continental fund's assets

totaled

j
supplementary retirement income -2,943,735, against 2,386,251, ^ ;
More than 40,000
through systematic investing irr
-shareholder.^
were
added in the first half oi
Fundamental Investors-

Fund, Inc.

com¬

stocks selected for their investment

quality and income possibilities.
Send for a free copy of the
booklet-pros¬
pectus by mailing this advertisement to

calvin

:.

(«

M&i o)

Fund

Diversified Growth Stock Fund, Inc.

N^NO^Z

A
,

bullock

STREET, NEW YORK5

,Name_

Addrwv"




Common Stock Investment
Investment
are

Established 1894
ONE WALL

objectives

of

this

Fund

Fund

possible long-term capital and
growth for its shareholders.

income

Prospectuses

available

these

mutual

funds

local

investment

through

firms,

HUGH W. LONG AND COMPANY

on

or:

.

'Prospectus

upon

request

incorporated

Elizabeth

3,

New

Jersey

t

14,716,447, v r- ';1
—United Accumulative fund's as

accumulation due to reinvestment

which

•

fund's; assets of

Income

i ■ i
fund's
assets
$34,698,826, or $11.11
a
share, against $28,090,691, or.
$9.98 a share, a year ago.
The

It

Diversified Investment Fund, Inc.

were

aggregated $102,635,831, equal
a sharev against $64,611,3 month program would; 929, or $10.53 a share, a year ago
The number of shares outstanding;

$3,000

Fundamental Investors, Inc.

J

the four
$314,508,045

of

assets

net

$152,942,537 were equal to $10.3
a share, .compare4 with $125,987,

investing program. - The study re-veals that over the last 10 years,

ago

United Con¬

compared with $236,662,995 a year
ago, and $273,066,148 at the star

stock

year

common

representing

industries.

million

more

tinental, Mr. Reed said. \

invest-

funds

$7

-

of the
other three funds—United Income,
combined

the

sales' than

income'tor^the Of Hivkl«Il«Is

of

produced

fund

mulative

l,—:—:—-

,

the periodic investment plan^
purchase of the United Accu¬

by

economy are

conservative

a

accounted

__it assets this year was

simplified Accumula-

Plan.

such

«ut -.tairu...-*..

excess

mutual

four

United Fund group

the

funds in

the

of

assets

nf

adding

gain.

;

For United Funds |

iz
12-

a

,

Peak Assets Gain

June

reuresenien
represented

: :

E. I. du Pont de Nemours.

share, down from $23.11 on March
31, but higher than the $21.71 at
30

and 300 shares of

Power & Light,

shares,

stated.

A

Jersey.

ern

mnniLe„reM

19

New

holding of 10,000 shares of South¬

^3cornered
^
the corresponding
p^"od °f 19
dlvldend in-

e
soiemii'
ot,pu3u1eii9aDu,.Reinvestiii©ijjKfi?

investment

of

and

Electric

General

Oil

Standard

.

W'.Wat

of

Atlantic. City Electric, and
shares -each
of American

Cyanamid,

■

.

25,000

and

Diego Gas &

1,100
1,000

A dividend in the amount of 8c

re-

with

agement

S.

sistant

its

Company

Robert

Colton, Leo Goodwin,

Treasurer—Harvey B. Gram, Jr.;
3nd Assistant Secretary and As-

in

L

Management

II PI

investment

..

positions

stock

,

,Q,ft

plan

mutual

a

the public

shares of
Electric. More
important additions to holdings
were
6,700 shares of Johns-Manville, 3,000 Oklahoma Gas & Elec¬
tric, 2,000 Central Illinois Light,
Service

lic

*

n. ® f ^

as

investment in

was

established through acquisi¬

were

denti Vice-Presidents—James H. plans were opened in the second
Lemon and D- J. Needham; Exec- quarter to raise the total to 3.323.
H,tive Secretary—Bernard J. Nees;;
The risks inherent in the high

which

20%

Rakpr

r

Chairman of the Board and Presi-

at

hold

to

L.
P.

elected:

increasing

investment

allowed

industry

one

contract

:

J;

first

during
further

industry.,,"

utility

Dividends paid by the fund,

and

meeting July 16 and
the recommendation
of

the

Fund:

Robert

The

annual

adopted

' each

The Parker Corporation

mon

quarter

increased

A

a

the highest

30,

it was announced

years,

jW^

In

Whiteford.

re¬

directors

the

Barnum

Charles

iKiitfaViiTnToMiMiiT

ia

June

on

1955 distribution

Towers, William T. Vandoren, Dr.

Washington
Fund,

Shareholders also approved
newal of the

aulNCOME

risk of

of

Investors

elected

the

l U1'"

change

increase in emphasis on

second

the

at

at June 30, 1955.

179,981

Asset

ment committee continues to view

satisfactory level, moderately
below last year's peak, the Wellington executive stated.
Con-

assets

•

85%

noteworthy

vesting Corporation reached $91,-

Mr. Kulp stated that high employ-

but, as is often the case, well ad-

any,

"ttiective

Most

.

Investment Limit '

fund «"* »

In-

Street

San

Established 1925
mu,ual

Broad

beginning of the year, and; ineluded the assets of Brae Tarn,;
Corporation, a private investment
company, which were purchased:,

is

Washington Mutual
Has 20%
Industry

Investors

of

assets

realized

icorporiited

with

compared

of 1956 and 87%
Net

tion of 20,200 shares of Iowa Pub¬

U

a

1930

York 5,

Now

of net assets.

more

a

and sustained tempo.

by Francis F. Randolph. Chairman

continues

Corporation

Eitabliihed

Broadway,

was

of the Board and President. This
was a gain from $81,646,781 at the

unless

economy

Residential

120

shares

new

g00d leveL Most important ot a11
onied'
T=t
leneth has been the strong supportu re"
if
A
Mnvp^ ^I.tn vwceived frorT1 hl§h 3nd nsmg busiPrp. Hpnf Rn/FvPfM.Hvp nirlptnr
ness sPendinS for new plant and
nf
equipment.- New legislation also
WHWton^ F^^ltntP^n
lends encouragement to the hope
^
^
* 2*- that'the long decline ip farm in'Rotated
corne
last be checkedi.
steei on'biand aye substantial.
Touching on the labor Picture,

fhe

,

Research

desirable change to

construction activity, commercial, nearly 27

t*

down

National Growth Stocks Series is

or:

rate

factors

these

^n- dential building activity. Overall reported total in the mutual fund's

great

fir ...Fiitti

The third quarter seasonal letis now in its early stages,

Series?

dealer

gradual

offset lower automobile and resi-

«,iii

«

ment fund

a

All

k

Investing In

common

of

industrial, state and local, is at a
on

pre YOU

flect

Strong

o+iLi

Tho

w

«

the sale

primarily for this purpose.
At June 30, common stock hold¬
ings stood at 82% of net assets,

J ferred stocks. Common stock¬
than
holdings cut from 85% to 82%;

'

cause

Interested In

more

a

year.

No Bad Effect

Daniel D. Weston & Co., Inc.,

9235

at

last

normal

Cal.—Stan¬

ley R. Morse has joined the staff
of

from

limited to bonds and pre-

used

Short Steel
HILLS,

invest¬

quarter

the

prudent,

seems

Investing continued its gradual
build-up of backlog, fixed-income
bonds and preferred stocks in the
second quarter.
Money received

High

credit has continued to rise

sumer

Joins Daniel Weston
BEVERLY

second

of

ments

'

"

policy

Chairman stated, and Broad Street

'/:

PETERSBURG, Fla.—Rob¬

ST,

ment

Broad: Street Fund

Co.

(Special to The Pinancul Chronicle)

Thursday, July 19, 1955

Lord, Abbett & Co.
New York

—

Chicago

—

Atlanta '

—

-

Los Angeles

,

1

Volume 184

Number 5552

The Commercial and Financial Chronicle

...

(313)

1956,

12

than

bringing the total to more
100,000, Mr. Reed said., .A

total

of

of

29,595,008

shares

sented the assets of the four funds

in

contrast

to

earlier.

year

The

24,380,992 shares

-

amount

sales

was

;

.

received from

$32,925,694,

totaled

$9,633,275,

$9,347,077.
X

;■

Dividends

and

shareholders
fund

distributions

of

United

amounted

six

the

to

months,

$2,326,240

a

$2,916,270

secu¬

of

$428,524

was

come;

tribution

United

Science

fund,

from investment in¬

totaled

$440,953,

represented

by

vestment

from

and

and

securities

shares

ables

capital
V

0.4%.

of

shares

1noorvw/uvs#*

June

I

stockholders

$311,-

tions
redemptions

profits

were

it

was

nuartprlv

^\t

reported

the

rpnnrt

the

the

Inc.

same

of

as

those

of

asset

30,
for

holders.
ended

gain

sa

?

gain
states

30

or

a

F.

dividend.
that no

made

tax

for

for

-

'

*

-fnn/l

Viot-l

1QSR

*

a

yea

•

Eberstadt;

Chairman,

and

;

portfolio

companies

the

net

of

31, -1956

the

was

of

end

the

first

deducting

of
a

Boron

lithium

and

energy program,

the Fund's

current

announcement
h

was

boron

;; The

to

produce

previously

award

of

tion

has

an-

contract

a

Hydrides, Inc.,

of

America

to

to

build

are

.

bonds

can

Hupinp

are

expected

to

i.'T

be

j

stock,

21,800

50 Congress Street, Boston 9, Mass.

Inc.,

and

Potash

Corporation,

both

prospectus describ¬

shares

lithium

Boron

and

some

debt'

$81

1946,

D-167

It

——........

is

actor
Address

.

of

6,700

shares
Chemi-

produces

of

-.—•

?occUrIuiexS Ja"glug
J9i66 that :held been
threat to the road s

.

reputedly

program.

'

.

do

ta

cosl

rea

so

d0

in
a

.

su^este^ as

as

so

as

'

its
n-s

possi-

J

k

'

;

f

.

,

-

.

.

i

.

With Kalman & Co.

MmSSTTT't
MINNEAPOLIS,Minn.-—Mich&cl

h°

tins.'

rose!

reasonable

3

bility.-

suferb s£am

this

,

J. xxctxciv,
Halek, Jr.
ui. has
nas become
uecume

Transporixaiispor-

in™o?s

affiliated
aiimateci

the

outlook

for

bond

but

not

dence

of

the

represented

many

change-over will-' be
of

reports

to

the

itself

in

yea^

must

view

"all

go

>

re-

com-

connected

«

rn

PJ_

Staff

to

be

of

its

out"

cott

evi-

Midwest Stock

Building,

members

of

Exchange.

the

V

the

Central

With Bankers Bond & Sees,

bv

convinced

decision

after

staff of Kalqaan & Co., Inc., Endi-

v

of

,0

,

.^

—Thomas T
T.

'

r,

Rlghthouse is now with Bankers
Boad.and Securities Co., B. & L.
^ MidTOt
Stock Exchange"

now

having

.

felt

steps much of
and until last

year

y-yj,

final

ttmp

Hue & C°" Pl°"

Building.

cer-

de-

While

partment.
Tbe

full-time

a

become

T.

Kalman Adds

in the

s^en

Illinois

time tWQ

this

the

investment

an

has

Smith

neer

100%

of

economv

j

for

with

ton miie.

dieselization becomes

neT C°"S°?dated rrtgagf has its way in tentative
reu-3ueu
separate: mortgages ;the time since 1951
which had
job

PAUL, Minn.—Raymond G.

Emerson

not

complete and it is almost
tain that more pronounced

is in

least,

Adds

hctg'ii

until

stock

now

^

freight train
cxcxiii
hour. It
iiuut.
it
should
hiiuuiu
(Specialto The Financial Chronicle)
be observed, however, that maxST. PAUL, Minn. — John J.
imum benefits are ; not' realized'Spindler has been added to the

per
ycx

r0ad

maturity

last

and

ST.

from

,,n

servire efficiencv-oross

were

1974

benefits

striking,' measured
either
by the Transportation Ratio or
bF the over-all measure of freight

1?50,.ta

common

Central

been

?lViden?S
when The
earnings thfs,
themselves even gQod.
road's
earliest

o.

(Special to The Financial Chronicle)

of the

Central,
lmnols
central,
benefits
dieselization
thus
far
have

potential

a

hkirrilh

h era use of ik

-

the

Central

is

traffic of the Illinois

generally

diver-1 ^

well

^WO
With Bacheemotneu)
& Co.
(SpeclftI to
.

cleVn-up"was^tL'disposaLoTthe identi'fie^wiuflhe^movemTnrrf Co^way.^^Have^ATGree^e
mostly in

for

^

x

road

cal1 .of

sold

$18 mil-

bananas and soft coal.
jn recent years

high

part of 1954 but as it turned out,
Tyis issue was scarcely necessary,

fact,

The preferred stock

convert-

was

S S .T t"

to

prior

March

1,

1955.

The

its

on

needed

that time

and,

as

result,

a

$13,245,000,

it

reacquired

debentures

about 70%. of the
that it had issued 9

couple

months, earlier.

of

rnoH'c

'

.The

riAtir

capitalization
now
is
a
consisting, as last reported,.,
of
about
$187,000,000
funded debt and 3,082,945 shares

simple

of

1-

—

common

the

ic

q

one,

j

---1

stock.

funded

debt

a'j

nm

About
total

aaa

aaa

31%

is

of

repre-

sented by equipment trust certificates in the approximate amount
of $58 million,"

with its financial
out

0f

the

capital

of

its

needs

0f

care

housecleaning

and much

way,

the

last

road

further

j

having been taken
by the $228 million spent
since tbe end of

+he

road's

value

w^idi

of

it

Central

the

handles.

The

the

moves

trade

Illinois

greater

nart

eon

of

dividend

increases

that

average

provided

✓-v

_

long

i

1

u

N.

now

C.

with

Paul A.
United

Securities Co., Southeastern Bldg.

'

W. E. Hutton Co. Adds
(Special to The Financial Chronicle)

CINCINNATI,
Schneider
W.

E.

is

Ohio—Philip

now

Hutton

&

affiliated

Co.,

V.

with

Firat

Na-

tional Bank Building,

mm*

Dock

*

which. passes

a

the

•

-

1

Joins Bache & Co.

_

the mile-

owns

Stuvvesant

through

/»/»»

•

traffic

•

"

(Special to The Financial Chronicle)

.

inter¬

CLEVELAND, Ohio

—

Cecil J.

change between ship and rail.

Walton has become affiliated with

Important
tainly is, it

Ba(die &
»
National City Ea3t
Sixth Building.

asoect

one

as

is

the foregoing cernevertheless only

of the

road's function.

The Illinois Central has been one
of the most aggressive in selling
its service generally and in lo¬

cating

industries

new

lines.

1,300
x

In

1955

76

alone

new

along

its

the road

ac¬

industries

plants

new

pvicfincf
a

oonitoi

capital
below

were

and

for

Dl^FltS

JbD.i

the

avnanHiiuroc

expenditures
the

10-year

the
a

1956 budget has
sharp increase in

$35 million

by! as'in
seventy

and

were

Foster & Marshall Add
■

(Special to The Financial Chronicle)

EUGENE, Oreg.—John H. Fos¬
ter has joined the staff of Foster
& Marshall, 89 West Broadway.

25
ex-

mixiion

and

additions

hflVG

SCCOUIltGd

avlraoe
average

annual
annual

authorization

for

erection

of
Ol

tSee

txiree

.

J" Progress

~

large

nlants

is

laxge^pidxiio io
.

lrto

Three With Blyth & Co. Inc.

pfttchii^h PlatP
?n5,P
IS thl niaS
a^
i' at- Champaign,
rLmnnLn
the
Humko
Co.

gen-

Central

has

been

only

about

av-

the

jt

was

It

should

be

stated last month that two-

thirds of the road's freight operations have
now
been
dieselized
that
.....
passenger service

tirely

dieselized

except

is

for

I

Joins Marshall Co.
MILWAUKEE,

Wis.—Granville

total,

but trailing

Street.

Keller Adds to Staff

behind

the trend of the Southern District

by

a

small margin in recent years.

en-

About

one

shipments

-..

E.

,

??'• In spite of ^thi^howeve^ a Benson^now with The Mjru
the revenue growth of the Illinois shall
Company, 765 North Water
Class

units.

Oreg.—George
L/Icg,
ucvlgc
,

(Special to The Financial Chronicle)

nf

erage—somewhat better than

purpose

,

ria«

ni

af

Xr'ano^her

195.T wUl go
1,750
hp.
diesel

PORTLAND,
rUAlbriiNL/,

Cooley, Max R. Millis and Wallace
G; Newhouse have become connected with Blyth & Co., Inc.,
pacjfj[Q Building

-*t

commented in this connection that

and

0

of the rail shipments to and Horn
New Orleans and

have

However,

million

eral

,

a

1955

the

is

-

year'

foreign

existing industries

$20

Allsbrook

COme through New Orleans which
js second onlv to New York in

the

..

(specialto the financial chronicle)

Bananas

decline last

a

T

GREENSBORO

Bnes

much to

revenues

which showed

World War II, the Illinois Central

highly favorable position,
This has been evidenced
the
Jicia uccii cviuciiLCU by
uy
i
v

its

so

quired

jn

for : the

on

for this purpose
js

.

With United Securities

Inr

year.

reason

be,c„°m«^.c0™ac''fdtw'tb
Bache
108 West Market Street.

new

a

road's tardiness in dieselizing has
been its reluctance to risk alienat-

or

pQntfQli7Qfinn

road's

a

was who have contributed

call

road

for

and reached

ing COal Producers

andconverted
mostx °1 th.e Preferred

s0

bave
&

The latter

has assumed increasing importance

lion 3%% debentures in the latter

^

incorporated
shielding materials.

energy

to

ra

fcSoSbte0nera«ng^ factors

financial well-

boron.

ponent of the hydrogen bomb and
has
other
uses
in
the
atomic

Stats

nractical

1956 per share net is
0n *he low side and an increase
t0 the annual rate of 54 has been,

than

bonded

exclusive

,

two

Metal

being

is

^y4™of"the

of

lnSv
Jwl McKnight Building.
jG*?-™aI
Smith, La Hue

i,Qj
i70rl

in-

ut

i.

1—+Uv.^,,«v.

is

Lithium

most

bef™
hold
UCU1 able
dUlc to
lu Auia

r

+

pro-

Ampnra
America

of

and

f

financial

Put through since the be- IpveniTe'lncrease "cuTrenthT'the
ginning of
1954.

which

^

.u

£ the dlvld£?d
order. The

w

nrpqpnf

has not been under

nressure

ccohoikiich!

similar

reduction

a

million

since

«airl

especially valuable in
the shielding of reactors'because
of its ability to absorb neutrons,

Growth Fund, Series K-9-

its

of thesystemand

greatly

of

use

said; been
shares ol

44,900
nf
Corporation of

American

cal

in

Stpprs

rnrnnratmn

Hydrides,

'

Keystone Company

-

*

utilized

du£ng
Pr°P?llants/:
The Fund holds
lthmm
Lithium

-

several ways

nrnruallnntc "

"

^

full

as

at

Some tuaus
roads did
uiu

ouiuc

The result has been
of

a

classified, but it is

,

lithium

long-term growth of




is

....v-

"Details

of

City

fuels,

participate in the metal propellant

capital and future income.

—

such

$4,400,000 plant to produce sodium
borohydride.
Lithium
Corpora-

,.,1

your

Force

lithium as propelNavy is planning cona $38,000,000 plant in

Navy

Metal

A diversified investment in

Name.

Air

and

The

Oklahoma

securities selected for pos¬

ing

.the

carrying out research

known that there

me

followed^a recent

by

program.

Plea«e send

let-

struction of

K-2

-

atomic

twtafi

that it

Grow til fund

-

new

■!'-

The comments

per

K.eystone

-

the

awiin
atomic

finding

are

.'X::.-';.;-

nounced

—

of

Jr., President of Atomic Development Mutual Fund,
Inc., reports

—t—

—

frtrtir

and8
m1«sisn^eNewtnn°
and
5343,000 to retire the small
missiles, Newton T
I. ^tpprq
Steers, °nly
unconverted balance at

30, 1956 after
quarterly dividend of

'mum

two

7ptr
metals ?'th?
of
the

glamour

lants.

*

•*!-•

'

closed-

$23.33

T

l>OrOII« Liltllilllll

on

sible

not make

?u?

lVkkr TTo^o

June

>eries

its

of

this stock the

17
r»
JF OF

reasons.

t

.
weaknp<?<! at

a'h'igh ™ad's „6% Preferred,

at

JXi^pOriS llt?W

T; *

of

the

'

approximately $3.63

value

asset

quarter

„

ter.

as

profitable

hidustry^a^continued6

In

The

most

quarter
in :the history of
many of the companies, and since

realized

a

com-

first

by Dominick & Dominick, reports
net

pontrni

own

a

th

at times and had beclouded

that

three months period ended March

the

£robab£ tL
^ fs that it

th

S

unreal¬

on

National Shares Corp.,

share

amounts

Fund,

topped

previous

the first quarter of 1956

end investment company managed

a

tiiinnic?

S

priority; that

to

road's

ariJiWsted"abovTbut ProsPective

ciean-w

of

pre-

thp

the

given

PCC-

been

toward

several

the

of this year and unless the strike
or
other misfortunes
upset this

1950

opportunities.

year.

■

al¬

Fed¬

16%, metal and mining 15, manu¬
facturing and
miscellaneous
9,
merchandising 3, natural gas 2
and electric utility 2.
*

most

since

has

move

of

depressed
prices.
vflolu

approximately 13 /0
in sales and 22% in net
earnings

of June 30,- oil shares
represented approximately 41% of
net
assets,
chemical
and
drug

,

done

to

for

estimate

1956 net earnings was officially
placed at $8.65 per share in June

of

1956

OP

a

increases

company as

■

first

Central

last

been

been

in¬

or

current

ut

,

noted

per share of stock outstanding.
!
1
Of common stocks held by the

.

finances,

been

advantage of
of its

on

investments amounted to

$12,129,762,

The

consolidation

has

if "c

has

.hiiS
.teii
charges m the same period.
Ti.pl In
s<rarc.eIy less ^importance was
cSavJ?*
the elimination of a series of debt

®

•

substantially
all
net
capital .gains to stock¬
During the six months

June

on

road's

which has

period in

One

„rifugR

t

_a

appreciation of $99,566,031
because the corporation expects to
realized

the

to

reported

any

mlio

7 634

ized

distribute

the

been

much

as

p'th

niit.tandine

value

31,
1955.
Dividends h paid
during the six months period to¬
taled $2.40 per share, of which $2

capital; gain

has

t/inuciv

Dec.

eral

u

but

the

the

revenue.

Illinois

of

dieselization

directly
by

17%

pr

net

been

U..4.

about

trust obligations which
.hire' rpmnl'reS
$lo« ?a»® "\c.reased- ^ ln 8pit® of the
Rhf
ROT
tl?« per
l share
h=i !n of over
'
,ap be?n a decf?se
891,893
or
$15.80
$9 million in annual

outstanding and com¬
$38.95.$per^share On

capital
report

the

job which the
accomplished in order

it

The

the

are

SaTby? =SS*SnSTuiiL^'

Chemical

June

reported

affected

The

which the road
hopes to be
permitted to discontinue. Present

one

for

fnetotmS'eou^'t^Thfi

$138,410,515 as of June 30,1956.
This is equivalent to $41.80 per
share on 3,310,815 shares of com¬

The

of

i-.

time!

iito

period last

that

strike

of

«cv;ICciscu
decreased
to
iu

assets

dustries

directly

ratio

same

that

gross sales from the 27%

of

lowance has

"come back" is
alone-

the relatively short
which it was achieved.

Highs

Chemical Fund

Tuno

a

bring

stage

$336,308
in 1955

United States & Foreign Securi¬
ties Corp., closed-end investment

reports

has

road

This
not

now.

magnitude

At Record

per

was

reason

for

norind

Railrpad

train

which, plans call for complete dieselizathey enjoyed prior to the Great tion some time in
1958.
J
Depression, but with far greater

Sales and Assets

of

Central

The bonds and the stock of the
Illinois Central have regained the
position
of
high
regard

remarkable

Chemical Fund's

th^

$138 Million

with

Illinois

on

stock

provide

in
many
instances.
The road has estimated
that if the
steel strike should last
60 days it
will
lose $3,335,000 in

By GERALD D. McKEEVER

an

Foreign

stock

:

000Chio? athreCf[rdstlesix "XmXfof afaglres^ve "program of"''debt
1956,
increase of 60%^^>ver the reduction for seveSl
^ea/s

Assets Now

pares

of

1955

_

of

which

stability.
On the other
the other half goes to in¬

steel

June

Government °kligations
10.8%, and net cash and receiv

Net

mon

31,
on

common
stock on
June 30 represented 88.8% of total

for

company,

com¬

value

Dec.

share

outstanding.
Holdings of

cqmn

$154,325.

U. S.

asset
on

per

$23.33

The figures are based

1,080,000

was

profits;

the investment income
471

of

30, 1956

plants

relative

hand,

value

June
net

$21.67

Sales

by $515,585 from in¬

income

securities

of

30, 1955.

with

United Continental paid $851,893
shareholders in the first half,

represented

asset
on

invest¬

income.

ment

to

paid to share¬

In the 1955 period the dis¬

$386,311

;

$128,828 of
■■VrS V

net

with

$21.09 per share
and

generating

previous

to

$579,232

holders

in

with

when

profits totaled
the distributions." ;•
the

to

Income

compared

year ago,

rities

Of

against

share in
;

share

pares

new

against

cents per

The
per

$24,820,991 a year ago.
Shares
repurchased in the six-month pe¬
riod

10

quarters..

a

./

per share payable July
corporation paid dividends

14. The

repre¬

41

cents

half
,

go

of

the

road's

coal

to, steam-electric

(Special to The Financial Chronicle)

BOSTON, Mass.—Ralph Levine

has

been

add|d to the staff of

Keller & to., oo &iaie oxreei.

1956

Financial Chronicle... Thursday, July 19,

The Commercial and
42

(314)

The following

Indications of Current
Business Activity

latest week
week

,

AMERICAN

ft ft:"ft

Equivalent to—

castings (net tons)

Steel ingots and

oil

output—dally average (bbls. of

condensate

and

gallons each)
runs to stills—daily average (bbls.)

42

nn

;ujy

—

July

;

(bbls.)
output (bbls.)

output

Kerosene

ujy

—

.u,y

(bbls.)
ruJy
Residual fuel oil output (bbls.)
——
July
Stocks at refineries; bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
July
Distillate fuel oil (bbls.) at

—

ASSOCIATION OF AMERICAN RAILROADS:
Revenue freight loaded (number of cars)
Revenue freight received from connections (no.

CONSTRUCTION

ENGINEERING

7,085,850
117,974,000

ft/ 7,034,350

27,736.000
2,028,000

27,482,000

7,677,000

7,962,000

8,041,000

7,583,000

178,549,000
26,760,000
98,289,000

♦181,446,000
£5,779,000
i" 93,672,000
38,374,000

184,409,000

159,307,000

22,903,000

30,456,000

80,637,000

105,167,000

36,742,000

45,304,000

755,292

787,075

648,992

643,754

631,141

548,783

$389,798,000

$511,922,000

$578,407,000

OUTPUT

*

527,925

July 12

437,272,000

191,410,000

319,619,000

371,880,000

July 12

220,105,000

198,388,000
145,737,000
52,651,000

192,303,000

206,527,000

143,067,000

161,151.000

132,778,000

July 12

77,038,000

July 7
July 7

.,240,000

SYSTEM—1947-40 AVERAGE =-= 100

7,358,000

'Refined

529,000

365,000

Deliveries

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

87

>,878,000

10,391,000

11,425,000

10,440,000

.July 12

251

208

286

224

.July 10

5.179c

5.179c

5.179c

5.178c

Pig iron

.July 10

$60.61

{$60.38

$60.29

$59.09

Scrap

.July 10

$44.83

$44.83

$44.83

$38,50

.July 14

PRICES:
lb.)

(per

(per gross ton)
steel (per gross ton)
(E. & M. J.

METAL PRICES

Export

Lead (New
Lead

Zinc

Tuly 11

at
Yorkftat
York) at——
at

Louis)

(St.

at

BOND PRICES DAILY AVERAGES:
S. Government Bonds

Durable

16.000c

15.000c

Nondurable

15.800c

14.800c

13.500c

13.500c

12.500c

95.34

16.000c

uly 11

15.800c

>uly 11

13.500c

—

(East St. Louis)

Ail

15.800c

MOODY'S
U.

Average .corporate.

Tuly 17

94.00

94.38

95.34

uly 17

104.31

104.48

104.83

Jly 17
uly 17

108.16

108.34

108.34

—————————
—

—

A*

uly 17
uly 17

—

———

—

Group

Railroad
Public

Group

Group

106.39

104.14

104.31

99.36

99.52

<uly 17

102.30
104.66
105.69
;i»-

MOODY'S
U. 8.

July 17

2.S7

July 17

3.49

July 17
July 17

Public

(tons)

of

109.79

-

.

2.93

U

•

'%■

Lead—

3.27

3.26

3.26

v

3.38

3.37

3.35

% ■''

^

\

3.23

3.76

3.52

July 17

3.50

3.31

3.47

3.46

3.44

3-21

uly 17

3.41

3.40

3.39

,3.18

July 17

412.6

416.5

413.4

273,007
178,617

257,108

284,576

at end of period

^

AVERAGE

7

7

56

97

97

7

512,197

418,186

556,099

DEALERS

EXCHANGE

Odd-lot

—

sales

Number

of

SPECIALISTS

AND

EXCHANGE

SECURITIES

dealers

by

N.

ON

Y.

Odd-lot

of orders—Customers'

Number

short

Customers'

total

Gold

Number

sales

155,704
''

55

{Cadmium

(per

gCadmium

(per

106.88

June 23

895,964

1,001,127

1,297,689

1,245,014

June 23

$47,241,503

$53,593,004

$68,176,848

$65,549,131

June 23

1,135,277
7,333

794,360
4,234

812,134

June 23

of

sales

FOR

2,837

I

OF

THE

STOCK

Utilities
Banks

•

5,498

809,297

790,126

1,127,944

1,170,328

$40,563,965

$40,651,871

$61,011,108

$58,842,561

-June 23

209,510

182,600

209^510

182" 600

295,000

?

295~000

•

MEMBERS

331,530

N.

433,030

327,240

sales
.

TRANSACTIONS

FOR

ACCOUNT

OF

which

in stocks in

307,080

June 23

8,201,790

June 23

8,508,870

1

415,260

387,036

471,180

8,948,610

11,921,680

13.572,610

9,363,870

12,308,710

14,043,790

Other

sales

sales
sales

initiated

off

sales

sales

sales

I
S.

DEPT.

June 23

1,111,680

1,316,350

1,713,070

1,716,720

June 23

183,410

252,850

227,370

277,400

V 1 $1.70000

$1.70000
$1.70000 ;

■

<

ft

25.900c
33.750c

$1.70000 ft

t

$1.70000 ft

$1.70000 ft-..,

$2.60000

82.60000

:

,

23.200c

25.900C
33.750c

*

i

.

23.500c

64.500c

64.500c

64 500c;-

$2.25

$2.25

$2.25"

3.82

3.97

3.71

5.35

5.41

4.66

4.68

4.73

4.53

4.41

4.52

4.01

3.19

3.07

2.40

4.01

4.13

3.87

£20,046,000

£21,128,000

£23,921,000

;

;

OF

YIELD
of

June:
—

(24)__.

& Tel.)

:

™~~

figure.
1956,

as

Investment

than farm

([Includes




and

964,000

against Jan.
Plan.

BRITAIN-

GREAT

IN

of

LTD.—Month

June—

1,

end

used

cent)

:

I
Commission)—

Commerce

"ft

,

.

r—

__:

""

foods

barrels
figure.

of

foreign

,

Tune 23

13,500

26,800

14,300

18,100

221,450

251,960

287,710

371,330

234,950

278,760

302,010

389,430

Dividend

June 23

435,800

"'490,697

654,655

1,370,040

1,436,760

June 23

1,022,770

1,318,500

1,597,410

1,714,160

Tune 23

233,870

280,500

308,660

368,920

'

658,745

for

June 23

71,530

73,260

38,570

84,100

June 23

477,374

508,375

612,884

701,407

-June 23

548,904

581,635

651,454

785,507

June 23

1,781,350

2,087,547

2,676,385

2,744,385

common

preferred

(000

268,440

352,910

280,240

"379,600

Exports

June 23

1,533,184

1,825,985

2,270,634

2,509,497

Imports

.June 23

1,806,624

2,178,895

2,550,874

2,889,097

113.9

114.2

110.3

uly 10

90.4

♦89.2

91.4

89.1

Tuly 10

102.5

♦102.1

102.5

103.0

July 10
July 10
cr

.■«
,

81.7

£0-4

81.1

86.8

121.4

121.4

121.4

116.2

de runs.
SBased on new annual capacity of 128,363,000 tons
tons.
tNumber of orders not reported since introduction of

-

„

956,514

stock

OF

IMPORTS

EXPORTS AND
CENSUS—Month

cf

April

.

•

3.55

(BUREAU

OF

MINES)

—

990,200

'32,245, 390

21.135,676

20,590,455

2,218,813

1,281,467

3.43

3.32

$1,574,500

$1,262,300

1,099,000

870,400

13,750
11,760

14.810

18,921

15,748

'

(short

tons)__—

Shipments

(short

tons)

7,966
•

at

"39,284,167

Month

May:

Production

end

month

of

—1—(short

tBased on the

♦Revised figure.

tons)

4.467, 001

66,229, 642
44,267, 525

"

—

—.—

—

•

70,696, 643

'•*.

^ 'nSn'inn

—

——

i.

3,755. 277
101,188, 029
V

45,401,420

70,078,196

omitted):

OXIDE

Stocks

•

stock

STATES
s

June 23

114.1

*

—~—4.
Ratio of income to fixed charges
—-

UNITED

■74,443,240
4.365,044

—

.—-——

On

104.943, 306

-4,441,058

105,075,342

—

appropriations:

On

$87,303, 609
17,639, 697

.

fixed

——

"

20,540,212
109,516,400

—

June 23

1,065,650

available

Income

$88,976,188

-\

$94,159,390
18,902,599

-ft—
113,061,989
from income-—.ft ft ft 4,708,201

—

deductions

Miscellaneous

89

-.

income

operating

income

78

87

.

ITEMS OF U. S. CLASS

April:

income

Total

22,604,000

26.516,000

month—barrels)——29,854,000

of

(per

INCOME
of

15,929,COO

28,939,000

22,222,000

-

22,340,000

19.578,000

23,386,000

-ft.—

(barrels)——-—z—.

mills

June 23

839,360

1955 basis of 125,828,319

{Corrected

_——ft.

(barrels)

railway

ZINC

"
~

AH commodities other

1,

$79,077
$1.70000

t

.11,061

15,826

producers' quotation.

-'

13,885

{Based on. the average of the

quotations. ^Average of quotation on special^shares to plater.
but less than carload lot boxed. §§Price f°r
♦•F.o.b. Port Colburne, U. S. duty included. {{Average of daily mean and bid and asK
quotation at morning session of London Metal Exchange.
ttl^Lvered where ireiglilt^
producers'

and platers'

([Domestic

five tons

from

East

St.

or

Louis

more

exceeds

0.5c.

:

'

29.000c

33.500c

.

.

———

(Interstate

RYS.

of

;

Meats

♦Revised

28.500c

£

$1.70000

charges—108,353,788
Income after fixed
chargesa_^^—__-----.%
,77,808,903
Other deductions
——,4
--4,118,719
Net
income
73,690,184
Depreciation (way & structure & equipment)
45,351,346
Federal income taxes—
32,205,730

fune 23

Tuly 10

products

of Jan.

33.000c

___

from

(at

Other

OF

commodities

Processed foods

as

.ft

$104,154

(BUREAU OF MINES )—
March:
ft-ftft
ft ,
ft;

of

SELECTED

Net

Commodity Group—

Monthly

T

31.970c

33.500c

1__~—

BANK

BUREAU

sales

WHOLESALE PRICES, NEW SERIES— U.
LABOR — (1947-49 = 100):.

Farm

Month

the floor—

Total sales

-All

ft $283,269

:

$1.70000

$2.60000

f

•

38.470c %

$265,231

$105,000

(per pound) —

.—

Total round-lot transactions for account of members—
Total purchases
Other

92 625c

r

^

93.625c

97.038c

$35,000

pound)

Amer. Tel.

ISSUES

CAPITAL

NEW

the floor—

on

Total sale*

Short

ftft $2.78977

96.C38C

33.000c

—~V

(199)

Month

registered

purchases

Short

77.977d

78.892d

$35.COO

1——

——

(10)

Insurance

MEM¬

sales

transactions

Total

89.688c

90.750c

36.470c

—

—

(not incl.

Shipments

June 23

Total sales

Other

£89.955

$2.80758

$258,115

—

__

(25)

(15)

Stocks

purchases

Other

12.232c

£91.398

£92.881

—

STOCKS—Month

(125)

Production

(SHARES):

sales

Short

"

94.635c

.——-

AVERAGE

WEIGHTED

Average

396,010

467,070

STOCK

Y.

TRANSACTIONS

.

Other transactions initiated
Total

£102.702
v

f £94.813

93.635c

—

Capacity

Transactions of specialists

Total

14.800c

£102.815

$35,000

pound)--

(per

15.000c

15.300c
£111.545

13.500c

$2.80217

pound)

plus ingot

36.339c

£109.847

£94.006
£92.387

—

35.700c

43.118c

16.000c

13.500c
1

45.531c

331-530

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:

Other

; '
ft
45.056c
40,260c

78.625d

ounce)

(per

ingot, (per

MIDLAND
v

sales—

Total sales

Short

1.70

90.464c

pound)
pound)

COMMON

100

1,175,826

June 23

-June 23

ON

SALES

sales

ROUND-LOT

l.q8

1.80

PORTLAND CEMENT

ROUND-LOT

AND

ACCOUNT

Other

.$1.87

2.08

16.000c
15.800c
£113.226
£111.071

pound)

——

Industrials

ft'

June 23

-June 23

shares—

round-lot

Short

$1.96

^

bulk, Laredo
boxed, Laredo—

(per

97

Magnesium

.June 23

TOTAL ROUND-LOT STOCK

Total

$1.98
2.09
ft-t 1-81

]

by dealers—

sales

EXCHANGE

39.9

ft

pound)

refined

642,257

Round-lot purchases by dealers—
Number

.

U. S. price)—

refined

Railroads

sales

Other

41.2

'

'

sales

shares—Total

of

Short

40.7

•

(per pound)

ounce)
(check)

(per pound),

Bismuth

Dollar value
Round-lot

r

(per

Antimony

81.58

67.83

39.1

(pence per

(per ounce,

$76.11

84.66

70.38
40.0

-

Quicksilver (per flask of 76 pounds)—_—
([Antimony, New York boxed—

-

$78.40

40.7

—

♦•Nickel

other sales

Customers'

New

38,533

39.1

ft

'ft

Exchange
York Straits
York, 99%

Sterling

53,443

■

(per ounce)

York

(per

■

'

-

Exchange— :ft ft 'ft

Sterling

New

Platinum,

sales)—

sales

132,730

London, three months (per long ton)
and

MOODY'S

;

purchases by dealers (customers'

York

New

Antimony

purchases)—t

(customers'

shares

!

ft"ft

§§Tin—New

STOCK

Dollar value

140,587

————

East St. Louis

Aluminum, 99%

COMMISSION:

128,573

—

^

tCadmium,

8TOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

130,881

_

QUOTATIONS)—

E. & M. J.

(

225; 7**?

108.65

108.87

108.93

July 13

-

85.48
70.77

/v.ft"ft-ft-

/

ft

Common,

Cobalt,

100

=

142,445 '

40.1
40.9

—

Common,

Tin,

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

•115,683

goods

Silver, London

405.7

,

290.477

281,606

uly

-uly
July

-

activity

■

■

Silver,

101,940

107,596
133,543

(per, pound)—East St. Louis
ttZinc, London, prompt (per long ton)

3.14

■

3.48

7

.ft 'ft -

Zinc

'3.05

3.49

July

-.

OF

—.

<

ttZinc,

.

5

{{Prompt, London (per long ton)
t {Three months, London (per long toil)

Silver

6,421,916
6,286,"82
134,934
2,34o,C4i

.

1,742,772

•

57,546

f«od.S

refinery

E*nort

3.24

3.46

•

v.

2.84

2.85

-r

3.48

v

3.57

!

,

..

3.78

v

—

—

Average for month of June:
(per pound)—
Domestic refinery

ASSOCIATION:,

Orders received (tons)

orders (tons)

i!

uly 17

NATIONAL PAPERBOARD

Unfilled

109.24

106.04

3.58

Group

Percentage

...

3.79

Group

Production

107.44

105.17

105.86

3.50

COMMODITY INDEX

MOODY'S

103.80

July 17
July 17
Group

Utilities

Industrials

108.88

99.84
103.13

102.96
104.83

-

104.48
>

•;

Government Bonds

Average corporate

Railroad

i:-

'

'

110.52

,

DAILY AVERAGES:

YIELD

BOND

106.74
'

July 17

—

;——

„

-

106.21

•July 17

—

Utilities

Industrials

'

1,888,408

—■——

Copper

112,19

,

-

goods

METAL PRICES

108.70
!

253,444

$79.40

Earnings—
manufacturing
goods

Hourly

16.000c

6,379.919

ft ft'.

-r,

DEPT.

S.

-

95.125C

uly 11

—

6,633,363

266,20G

—

goods

35.425c

$572,000

it'

June:

of

manufacturing

35.700c

V

6,733,286

" 6,467,060
-ft.

i

Hours—
ah

^

HOURS—WEEKLY

AND

goods

Nondurable

41.925c

39.350c

92.875c

$515,000

manufacturing

Durable

:

June:

pounds)

ESTIMATE—U.

94.000c

34.950C

94.750c

of

U. S. A.—
pounds).—

2,000

EARNINGS

45.200C

45.425c

39.475c

uly 11

uly 11

$476,060.

stocks at end of period (tons

copper

VcvnHi«"nMn

(New

-

(net tons),

month

"

'

Weekly Earnings—

QUOTATIONS):

refinery

tin

$177,917,000

(tons of 2,000 pounds)...

A.

Durable

at

refinery

Domestic
Straits

$185,584,000

—

——.-

For

—

of

LABOR—Month

Electrolytic copper—

ft
$186,540,000

fabricators—

to

S.

U.

A11

steel

3,015

2,000

(tons

AVERAGE

IRON AGE COMPOSITE

Finished

of

(tons

FACTORY

&

DUN

INDUSTRIAL)

AND

(COMMERCIAL
BRADSTREET, INC..

13.365

of May:

2,000 pounds)

of

2,403
6,667

—.

,

tons)

production In

Copper

124

2,859

v

-

tons)

INSTITUTE

7,540,889

5,550

tons)

(net

9,746,467

:>t;

7,783,873

.

SYSTEM—Month

Oven coke stock at end of month
COPPER

*10,490,376
•1--'

OF GOVERNORS OF

MINES)—Month

OF

(net

coke

9,850,000

■*

:'".ft.::

(000's omitted)—.

(net

Beehive

73,749,000

105

90

7

EDISON

FAILURES

(BUREAU

Refined

July

—

'.ftftft;

.

RESERVE

Oven coke

9,758,000

cars

thousands)

As of June 30

Ago

'*.} •*/ e':" v?:

7,764,776

PAPER OUTSTANDING—FED¬
BANK OF NEW YORK—

COMMERCIAL

In

tons)—

(net

delivered

cars

(in

31,152,000

♦7,300,000
672,000

52,000

INDEX—FEDERAL RESERVE

DEPARTMENT STORE SALES

'

•

freight

new

June

Crude

(tons)

anthracite

Pennsylvania

$657,377,000

Month

INSTITUTE—

CAR

THE FEDERAL RESERVE

of

COKE

July 12

«.

(tons)

and lignite

coal

Bituminous

for

freight

ERAL

478,297

S. BUREAU OF MINES):

(U.

New

June:

of

Month

Orders

1,887,000

11.474,000

,

RAILWAY

AMERICAN

Production

8.

—

7,646,000
26,478,000

2,140,000
12,092,000

39,7 79,000 •

July 12

construction.
Private construction
Public construction
State and municipal-

8,029,000
27.142,000
"

2,125,000
12,358.000

NEWS-RECORD:
Total U.

6,596,900

6,997.650

8,144,000

,

July
of cars)—July

June
•

ENGINEERING

—

of

of steel
products
Month of May —.—

BANK DEBITS-^BOARD

—July

at

Residual fuel oil (bbls.)

(net tons)—Month

v ;

Year

Previous

produced

for castings

steel

of that date? •:

are as

INSTITUTE:

STEEL

AND

IRON

ingots and

Shipments

"

—July

(bbls.) at

Kerosene

COAL

ft

2,195,000

2,290,000

♦317,000

V 12,434,000

fuel oil output

Distillate

CIVIL

Steel

§360,000

of quotations,

cases

Month

AMERICAN

:

Crude

Gasoline

,

uly 22

in

or,

/

91/

93.0

PETROLEUM INSTITUTE:

AMERICAN
Crude

.

—•

——

that date,

Latest

Ago '

Ago

•12.9

§14.6

July 22

——

on

production and other figures for the

cover

Dates shown in first column are either for the

•

Year

Month

Week

Week

STEEL INSTITUTE:
(percent of capacity)

AND

IRON

steel operations

Indicated

month available.

month ended

or

Previous

Latest

statistical tabulations

or

L,

*

Financial Chronicle

Number 5552... The Commercial and

Volume 184

competition

Corp.

though Machinery

close

was

(315)

augment general corporate funds.

:

winning bid

The

334%

rate,

or

the

off

lowest

runner-up
same
interest

the

for

only $2.69 per $1,000 bond
best
tender.
Even
the
of the three bids, 101.21
rate

the

per

$1,000 under the best.

was

to

o^^like

The Week

week's Ameri& Telegraph Co.,

which greeted last

Telephone
finnnpino
financing.

&

L

Next

There

Save

received

well

in

and

the

elements

major

faction

satis-

of

went

offering

in spite of the

marked extent.

channels

building

offset,

to

manner

a

appeared that
investment

been

have

mental

and

colleges
have

funds

fair

than

v

doing

been

job

a

helning

of

'

Illinois

do

should

ket

could

ences

Power

-

for

ment

The

following

reinvestment

year

substantial

a

0f

have

to

seems

once

stage

lost

some

of

its

uted to the success of ATT's ven¬
ture.

•T-

Electric

Union

drew

Missouri

of

of

Co.

made

$24

*'

an

Joins

the

EARNINGS REPORT

Nolting, Nichol

to

its

stock¬

connection

organization

of

a

be

with

operate

notes and to

I

is

Nichol &

Co., West Garden Bldg.

now

with

King Merritt Adds

coal

and serial
carrying forward the

construction

DIVIDEND

program.

(Special to The Financial Chronicle)

MIAMI, Fla.—Jay L. Blanchard
is

connected with

now

ritt & Co.,

Building.

merce

DIVIDEND

NOTICES

NOTICES

in

A regular quarterly
dividend of
31%^ per share on the 5% Con¬

Privately

TENNESSEE

declared payable September 1, 1956

CORPORATION

Preferred

stockholders

to

15, 1956.

Stock

has

record

of

August

;

The Black Hills Power & Light

July 10,1956

A

Co., it
4%

regular quarterly dividend of
30^ per share on the Common Stock
has been declared payable August
31, 1956 to stockholders of record

announced on July 16,

was

placed privately $1,000,000 of
first

series

bonds,

mortgage

Food

for

NNISSII CORPORATION

been

vertible

A dividend of
cents per

to

M. E. GRIFFIN,

Secretary-Treasurer

PUNTA

Dividend Notice

Dividend

B"ard

The

and South West

Corporation at its
meeting held on July 18, 1956,
declared a regular quarterly divi¬
dend of
thirty-five cents (35
per
share on the Corporation's
dividend

This

Stock.

Common

on

share

ber

28,

record

stockholders of record at

The

as

dividend
of $1.0625
the $4.25 Cumulative
payable Septem¬
1956, to stockholders of

share

5,

of

Secretary

business

ANSLEY

WILLIAM

pay¬

R. J.

Reynolds
Tobacco Company

DOUGLAS,

C.

Chairman
.

i;.

July 12, 1956

Secretary

Central and South West
Corporation
Wilmington, Delaware

• ■r

*

Makers of

IOWA SOUTHERN

■

..J."

„V

15, 1956.

to stock¬
the close

2nd,

WILCOX

the

per

1956.

6,

August

of Directors has

dividend of $1.00

of business August

$.25

Stock,
of

as

a

holders of record at the close

<

1956

30,
record

of

John G. Greenburgh
Broadway
Treasurer.
N. Y.

New York 6,

share on the capital stock
Corporation, payable
September 1, 1956, to stock¬

of

business

of

Common

August

holders

of

1956.

dividend

the

on

close

the

of

61

per

Stock,

as

Board

declared

on

Quarterly

SUGAR

1956.

July

dividends

5

September

is

Camel, Cavalier, Wiaston & Salem

UTILITIES COMPANY

:

cigarettes

MacFadden Publications Inc.

•

•

COMMON DIVIDEND
A
,

:

,

Niagora Fall*, N.

Y.

QUARTERLY DIVIDEND

PREFERRED DIVIDEND

quarterly dividend of $1.75

on

the

Preferred

Stock

stockholders

of

record

at

DIVIDEND NOTICE

-

per share
been de¬

has

clared, payable September

1,

the

y}yy/.

A

1956 to

on

the

declared,
to

Common

III

been

payable September 24,

1956

of business

on

of

record

the

at

September 4,

Public Service Electric

per

has

stockholders

Stock

and Gas Company

32

close

1956.

N.

J.

President

>:•

^

July 12, 1956

HHfjL-

SANITARY CORPORATION

Frank J. Berberich

."■i;

Common

to

fff/|

*

clared the following
for the quarter

AViSCO
tion

of the

11(a)

amended,

as

consolidated

an«

Securities

earnings

basis

for the

Act of -1933,

Registration Statement filed
on
May 3, 1955, with the Securities and
Exchange Commission (SEC File No. 211567)
relating
to
190,960
Shares
of
Common Strck ($10 par value) and $15
million 25-Year 3%% Sinking Fund De¬
bentures
due
May
1,
1980.
Copies of
such
earnings statement will be mailed
to the Company's security holders and to
other
interested
parties
upon
applica¬
Company's

tion to

the

Mad:son
New York

"

;

By J. Bicknel!
'

19,

American

Viscose

Preferred

;

. ,

.

, .

Preferred

.

..

$1.40 Dividend Preference.

...

$1.02
1.045
L075
.35
.45

Common

Corporation at their regular meeting
on

1956, declared a dividend

July 5,

of fifty cents
common

1956,
the

(50c) per share on the

stock, payable on August 1,

to

of

shareholders

close

of

business

on

record
July

at

All dividends

are

payable

on or

September 29, 1956 to

before

F. Milton Ludlow

Secretary

Lockhart, Jr.

Secretary

President

and

Treasurer

meeting held July 10,

The Board of Directors, at a

1956, declared
five cents per

a

regular quarterly dividend of seventy-

share

on

stock of this Corporation for the

tember 15,

of the calendar year 1956, payable Sep
1956, to stockholders of record at the close

of business

August 15, 1956.

third quarter

,

Simmonds, Secretary

Norman F.

RICHFIELD
Oil

Corporation

Executive Offices: 555 South

WILLIAM H. BROWN

Vice

PVBLIC SERVICE
CROSSROADS

OF

THE

Los

Flower Street,

Angeles 17, California

EAST

1956




*

RICHFIELD

31. 1956.

18,

16, N. Y.

Secretary
July 12, 1956

President.

17, 1956

stockholders of record August

<

Avenue

CONRAD,

Dividend

4.18% Cumulative Preferred
4.30% Cumulative

the

.

PAPER CORPORATION

260

July

of

W. J.

Winston-Salem, N. C.

Per Share

1356.

Company.

RIEGEL

4

Directors

statement on a
twelve months'

period ended July 1, 1956, such period be¬
ginning after the effective date of the

bush

August 15, 1956.

dividend notice
■*"

Stock"-

4.08% (umu.otive
Notice

ness

.

SHUTTS,

ending Septem¬

Class of

Dividend

payable Sep¬

has de¬

■VISCOSE

CORPORATION

L.

and

tember 5,1956 to stockholden

($15 par)

dividends

ber 30, 1956:

has made gen¬
erally available to its security holders,
in accordance with the provisions of Sec¬

Common

DIVIDENDS

The Board of Directors

Paper Corporation

Stock

its

on

the

of record at the close of

payable September 1, 1956,
stockholders of record August 15,1956.

July

QUARTERLY

Riegel

share

of 80

share has been de¬

of the Company,

per

per

on

New Class B Common stocks

per

EDWARD

Secretary

AMERICAN

cents

per

clared

all dividends

AMERICAN RADIATOR & STANDARD

I. S. MANHEIMER

cents

quarterly dividend

cents

dividends:

share on its
$1.76 Conv. Preferred Stock* ($30 par)
44

NEWARK.

A

declared the

share on its
4%% Preferred Stock ($30 par)
35% cents

of

close

on
August 24, 1956.
quarterly dividend of 35 cents

The Board of Directors has

following regular quarterly

business
share

number of shares.

y.':h V

;

MERicAN-^tandard

Washington

smoking tobacco

ELECTROCHEMICAL COMPANY

HOOKER

The consolidated net

declared

the close of business Septem'

CORPORATION

Quarterly
per

Preferred

oldens of
record31,
gayable
August
1956,
to stockJuly
31, 1956.

"

Directors

of

declared

18,
1956,
follows:

The Board of Directors of Central

ALEGRE

fifty (50c)

was

payable September 26, 1956,

August 15, 1956.
NOTICES

DIVIDEND

NOTICES

share

Priace Albert, George

s.''"'-'"

King Mer-»

Inc., Chamber of Com¬

./H

Common Stock

the

profit of
our
Company for the first six
month
ended June 30, 1956,
after taxes, amounted to $310,305, as compared with $205,135
for the same period last year,
an
increase
of 51.2%.
This
amounts to 76.1^ per share on
407,561 shares outstanding, as
compared with 50.3^ per share
last
year
on
the equivalent

Nolting,

proposes

certain

purchase

of

$319,443

^PENSACOLA, Fla.—Jerome C.
Dubourg

sub¬

new

to acquire
mining
properties. The rights will expire
on
July 31. The remainder will
be applied to the prepayment of

and

(Special to The Financial Chronicle)

cur¬

share will

per

in

part

sidiary which

Rights offering to stockholders
terminates July 31,:

Missouri

And

bonds.

mortgage

Florida

ber 12,

offering of $40 million of 30-year
first

of

stock

common

company's

week

second

Sells Bond

million

>

total of three bids for its

a

the

about

September.

able

Electric

it is

the

at

in

used

Meanwhile, Gulf States Utilities
reveals plans to sell $13 million of
bonds and 90,000 shares of com¬

LEROY J. SCHEUERMAN,

Union

Co., that

$70 million of
the sale of 25-

seek

to

view

though it may have contrib¬

zest

Gamble

&

planning

influ¬

this

at

Proctor

has

debentures

25-year

DIVIDEND

demand,

factor

real lift from announcement by

day bankers are

scheduled to bring out $30

spell. Certainly mid¬

a

start

will

Co.

taking bids for $20
first mortgage bonds to

provide funds for construction on
Tuesday,

develop¬

such

shares

11,700

with A. M. Kidder & Co.,
Avenue.

now

take
capital.

seasonal

deter

in the pace.

up

holders

trust ;
better

the

better

that

be

to

pick

a

.

by

feeling that the investment mar-~
seems

sale, to¬

506

to

relation

more

break.

rather general

a

of

TAMPA, Fla.—John R. Lindsay
is

to

of industry's needs for

While there is

ar¬

gether with the proceeds from

offering

A. M. Kidder Adds
(Special to The Financial Chronicle)

bidding,
price

is able

investor

churches

with

along

fi¬

a

agent in

as

The proceeds from this

organiza-

of

those

as

business, but investment bankers
looking more hopeful toward

mon

this

into

in

mini0n

govern-

endowment

and

such

tions

both

funds,

Pension

care

up

responsive to new issues.

more

prospec-

enters

undertaking
better

become a bit

life underwriters to

with

to the market giving the

*

large

in

underwriter

things

the reluctance of the big

measure

case

the
an

other

from.

and

competitive

of

the

a

-

it

again

.Once.
funds

in

.

<?pvv . .

acted

with

Dillon, Read

type of operation more so than in

offvigorously
indisposition on. the
part of the major insurance companies
to
participate >* .to
the

the

three largest

tive buyer.
Since realism

found in the fact that

was

few in-

a

what

operations

underwriter

^he

vestment sentiment generally*
of

dulle?
underwriting

are

a

negotiated route, a circumstance
which seemingly is pleasing both

fillip to inOne

much needed

a

promises

Inc.

Co.

1986,

ranging the financing.

rently being

much

been

have

the Fall for

Ahead

&

1,

institution.

company's

prospects capital through
scheduled to be marketed via the year debentures early in Sept.

quarter billion dollars,

a

decidedly

was

week

two of the

This enormous undertaking, in

volving

^

-

,

* teresting

;

got

July

due

G,

nancial

eral funds.

Expectations along that line got

draw satisfaction from the success

can

^ f

^

gen¬

Backlog Building Up

most otters recently

v
Oil lO 3, SIOW, Slait•

A

icriio

enlarge

notes and

repay

<•

particular rush to take up the

no

in

heaviness

Treasury list, as the big exchange offer closed out, the corwinflrnf
+
porate issue market appeared to

of

of

Paper & Fibte Co. will be floated

summers

the

issue

an

25-year sinking
debentures
of
Champion

fund

evidently were in

But investors

Thursday

on

million

$20

only $4.29

for

same

And

101.639 for

was

The

coupon.

101.37

bid

renewed

for

payment of outstanding notes and

a

Despite

provide

to

perhaps not what might be termed
keen.

43

'

Financial Chronicle..

The Commercial and

Thursday, July 19, 1953

•

(316)

44

makes the compensatory fiscal
policy ludicrous.
1//
Nevertheless, the JEC reports,

;

BUSINESS'BUZZ

whilst

around

keyed

compen-

fiscal
policy,
actually
sounded the starting bell jn the

-

inexorable drive to raid the par-

:

satory
t

•

Behind-the-Seene
from the

A

InterpreUtiom

H

il

l( fill
M. vr Cv

'

jljL I i/Vi/

Nation'* Capital

tially excluded income groups.
hearings and report of the

The

Ways and Means subcommittee

/

.

expected to carry the gospel
and propaganda farther.
are

;

win the House
November's elec¬

if they

ocrats,

again in next

combination of

~

"

-

problem of

*

P the full rigors of corporate and
surtax rates. These areas are
those of (1) tax exempt income,

capital

whole

the

<2)

n

•"

ances.

partially
excluded areas has behind it a
potent vested interest which, if
they are all tackled at once, will
make them difficult to knock
over.
For instance, the oil dei; pletion allowance is the most
spectacular
instance of how
some
of the rigors of taxation
are legally
avoided in the deif pletion area. The tax exempt
area's most notable case is the
state and municipal bond. It is
the contention of scores of "lib—
,

x

>

.

time

Some

in

has undergone,

last

the
tax

in the House, a j

revolution.
Early in 1955, Speaker Sam
Rayburn put through the House
the $20 per capita income tax!
cut, coupled with the repeal of
the 1954 law's dividend credit. !
This failed to get very far in
the Senate. Before long the reaction of the country convinced
the House Democratic leader¬
ship that a small individual tax
cut like $20, even though simple
to advertise over the political
millions

appeared to move the
to no enthusiasm what¬

As

<me

"liberal"
later,

»

t

<

ne

from

aries
:

outstanding
Senate
told this correspond¬

got very tdw let¬
prospective benefici¬
$20 per capita cut
urging that it be enacted.
On
the other hand, the people who
collected a little on dividends
can usually read and write and
write they did.
He got almost
no letters
favoring the tax cut
but did get a lot of letters pro¬
testing against his vote in favor
of dropping the dividend credit.

ent

ters

a

sibility.

That

of

the

"Must Be

So

the

Big"

-

leadership

began

that

nues

to

among

and

oil

;

more and more income under
full
corporate and individual

rates.

surtax

There

around

as

course

to

to

will
file

from

their

special

briefs

and

ment

a

Cuts

However, the

only true "in¬

which

have a remote

chance of being

ameliorated are

equities"

the

laws,

tax

after a study
brought in a

base

so

many

excluded
that
the

of govern¬
in boom
be raised in

well

as

as

depression,

of

taxes

can

times

(other than war)

as

be

lowered

be

sions, although

that

and

times,

raised

during

in

boom

as

Booklet
t

is

It

of

not

realize that a tax cut, to be ap¬
preciated in the lower brackets,
must be genuinely substantial to

beyond

v

get the attention of millions
voters.
The sober judgment




of

objections to this tax ap¬
proach,
even
if the present
occupant is reelected. There are
some
who are willing to fore¬

of

that

reelection

lowed

by«complicity

ance.

the

oil

an

will

hower

in

pro-d

Distribution

Depart-J

ment, Chamber of Commerce of[
/ the United States, Washington^
£v

copies. ]
request/

C.—paper—single

D.

6,

free; quantity prices on
World

Economic

^

1955
Department

Survey

United National
-

,

o£

Social Affairs—I
Columbia University Press, 2960[

Economic

and

Broadway, New York 27, N.

Y.f

paper—$2.00.

.

well

depres¬

current history

TRADING MARKETS
Botany Mills
A. S.

Campbell Co. Com.
Fashion Park

v

Indian Head Mills

Morgan Engineering
National Co.

realm

the

pose

cut

Business—jj|

designed to assist

Domestic

,

conjecture that the Whitemay not seriously inter¬

privately

Office*
^ '
j

United States Envelope

House

cast'

;

spective business men who planj
small retail establishment—»!|

Riverside Cement

Carl Marks & Co. Inc.
FOREIGN

SECURITIES

50 BROAD STREET

•

Sightmaster Corp.

SPECIALISTS

NEW YORK 4,

.

Eisen¬

be

get a
depletion allow¬
to

TEbt

HANOVER 2-0050

-

Investment

Securities

TELETYPE NY 1-971

Boston 9, Mass.

10 Post Office Square,

folr
1

').M■ i.W

J-.-.-. MM., ■ .■mij.wu.w

m;R'.UII,WII.iwr^■ U'M-<A»■

■* mr •'rinWmii -iww.

\n.n«

«n

" i -

i

■

Jjl

-

LE3NER (t CO.

N. Y.
.

;

yearf

a

White House Reaction
-

D. C.

Going Into

You're

So

-

-

Printing

Washington 25,

national

lowered

be

can

times

Relief Depends

will prob- /

Government

fiction that expenses

and a good many
undoubtedly will be heard.

On Spending

i

Eco¬

"compensatory
fiscal
policy"
was
negated to that extent in
the scope of its operation, pp
It .should be borne in mind
that the JEC still lives by the

doubt be al¬

no

tax

chunks of income were

it expects

the

all

the

report which called the
shame to the fact that

statements,

of the

~

gets

lowed

propagandize

individuals./

it

pleaders

terrific drive to
the "inequity".
present tax laws, to show
that if the allegedly tens of bil¬
lions of dollars
now
escaping
taxation were hit, there could
be so much more done to cut
taxes
for small
business and
be

of

ready

per

/—Superintendent of Documents, j

the

the Joint

nomic Committee,

Of

;

when

was

somefj

in the field (

construction—$3.00

of

lasso

aforementioned.

groups

from private sources

.

*

This

to, to public hearings.

drive to cut down on
other
depletion, net

greatest

three

business representatives
read great hopes that
own
various
inequities

getting

the drive

|

Joint

and

Government

Federal

matter of fact,

a

began many months ago to
the
income
excluded
in

thinkers

wishful

were

,

Study

As

—

publication of U. S. jj
Department of Commerce and j
U.
S.
Department of
Labor, |
bringing together all the major
statistical series compiled by the ||

monthly

To

their

if

the

see

JEC

Review

Construction

.

present their special cases to
subcommittee, when, as, and

however,

not,

probably

will

1957

or

daily newspapers.

Harkens

the

is likely to give this
project something of a battle,
although more and more the
Finance Committee is coming to
be "liberal" in its make-up.

foreign aid, a
welfare /pro¬

began to

asts

(D., Va.)

Successful

in the

as
a
consequence
be
ameliorated.
Already
enthusi¬

Byrd

F.

Harry

Chairman

der

new

grams or special aids for spe¬
cial groups pass the Congress
without being even mentioned

might

the

because

in

cut

little

dozen

with
the
an¬
nouncement by the Ways and
Means Committee that a sub¬
committee this fall would study
the
tax
laws
from
stem
to
the

occupying itself and the
; headlines
with a

tentative

Immediately

stern,

already

newspaper

remedying

laws, with a view to
inequities therein.

Street.

Seventh

West

r>

f;|

Co.,

Dempsey-Tegeier &

staff of
210

Cal.—Norman
added to the

been

got

gress is

Ways and Means
of the whole tax

House

has

Green

H.

wise to the idea that
spending is inexorably on the
rise, and must be met ultimately
by larger revenues to escape
too rapid inflation. While Con¬

that

Committee

:/

inequities

these

Far-seeing "liberals"

trained observers
will
regard
the. forthcoming
studies by a subcommittee of
the

spending

Federal

as

which

:

have

light of the fore¬

It is in the

going

long

Dempsey-Tegeier

produce.

Committee Studies
,

is at this
dubious pos¬

is

215

Inc.,

Co.,

&

ANGELES,

LOS

inexorably on the rise,
the government has a vested in¬
terest, as it were, in the reve¬

"liberal," a Republican House
nevertheless should be elected
next November, then the Demo¬
cratic project would fail. '

Finance Committee un¬

Senate

ably

ever.

rather

moment

Blyth

keeps

does Mr. Eisenhower,

as

cluded income groups,

rather sweeping

■counter,

So

who do not think 100 %
to show
their candidate is a

gress

partially-ex¬

the

from

dough

year ■;

philosophy

of

(Special to The Financial Chronicle) '.

which cost close to zero,

those

However, if in spite of the
patent interest of the White
House in
appealing over the
heads of Republicans in Con¬

Democratic
leadership will get very far in
1957 in netting large/chunks of

Philosophy

Democratic

the

a

House

the

That

jj

'

ANGELES,

With

had

pushbutton driving?—We've
pushbutton driver right here for years!"

"So what's new about

Action Dubious

1957

eluded income groups.

11

5

West Sixth- Street/

Neverthe¬
less, the 1954 act will be as¬
sailed because it .is thought
necessary
in the interests of
good conventional partisan pol¬
itics to try to prove that the
other side made a sucker out of
the voting people.

tial can
have
whetted by the

111

not coincide with

Calif.—Myron
Winkler has been added to the

staff

cluded income areas.

.

,

lj|

the "Chronicle's" own'views.] -

D.

the

be undertaken
that a retreat
therefrom will net much cash;
the cash will come from cutting
into
the
three
partially ex¬

if the "small
and the individ-

Background of

[This column is intended to re¬
flect the "behind the scene" inter-

LOS

idea

the

V, V *:j\

Blyth Adds to Staff

1954 act will not

with

their appetites
prospect of re{lief from taxation this would go
I a long way toward making it
politically possible for the Dem^ocrats to break through the wall
of obstacles to such partially ex-

: •'
'

The attack on

recognized.

of

sources

* -,/",

(Special to The Financial Chronicle)

will be so

and tacitly

little

to

•.

/

the greater flexibility
provided to business in

is

■

and may or may

selling
fully tax - depreciated
equipment! paid off the Treas¬
ury at the capital gains rate of
25% instead of the going corpo¬
ration income tax rate of 52%.
This cutting at the 1954 act,
however, in terms of money in
the Treasury bank, will amount

In other words,
business man"

«■

-

in which
liberal de¬
preciation, faster than the ma¬
chinery or equipment actually
depreciated,
and then when

personal in¬
come taxation.
The other is the
adoption of the graduated tax
on
corporation income pitched
at easing the burden of "small
business,"- whatever that might

.

1

.

so

bring up instances
business took more

ity of a big cut in

•

to,

be

/

approaches may be made
"selling" this broad changed
One of these is the possibil¬

be taxwise.

well

>
'

Two

'turn out to

partially-excluded,
income.

pretation from the nation's Capital

depreciation. The Demo¬
cratic group probably will hold
prolonged hearings which will

items are
capital gains rate
of 25% into which the tax bite
instead should come at the 52%
corporate rate or the applicable
surtax on personal income.

.

>' / bate the hooks to catch the now

taking

hit at the top

in

tax

in the instant cir¬
"undo the harm of
the 1954 tax cuts." Chief among
these is the dividend credit. An¬
that act

temporary

a

relief could last long enough to

goes,

other

such

However,

;

small

and

"temporary."

not

: Another phase of the House
Democratic leadership's 1957-58

cles

erals" that numerous

;

business would be

"1954 Harm"

program
can
the thinking

these three

of

Each

basic

the

an

individuals

afforded

^

gains ;
allow¬

of

nature

eventual need for
many billions more of Treasury
revenues,
that the tax
relief

reduction unless it can be made
to look like something for the
voters,
p i u s
something for
"small business."
Undo

the

is

It

.

Hence, the Democrats do
want to piddle around with

areas

| field, &nd (3) depletion

*

money.

in which personal
corporation income escapes

.main
and

worth,
the trouble because in terms of
a reduced payroll tax deduction
oyer
52 weeks,
it hardly
amounted to more than smokingbillion, was

i

:

-

Would Be Temporary

Treasury $2.5

"broadening the
base" of taxation and a hefty
cut in personal income tax rates.
By "broadening the tax base"
is meant cutting down the three ;

Relief, If Granted,

,

boost of $100 in exemptions,
even
though it would cost the
a

tion, are likely to strike out
boldly on a broad new course
of taxation. This will involve a

P

that not even

the leadership was

WASHINGTON, D. C.—Dem¬

Telephone
HUhbard 2-1990

-

.

.

Teletype
BS 69

h